View Filing Data

Net loss and total comprehensive loss

(7,054)

Issuance of shares, net

^[1]

8,423

8,445

Expiration of share options

(26)

Cost of share-based payment

1,043

Ending Balance at Dec. 31, 2017

171

65,951

3,889

(2,188)

(55,102)

12,721

Net loss and total comprehensive loss

(6,479)

Expiration of share options

1,242

(1,242)

Cost of share-based payment

710

Ending Balance at Dec. 31, 2018

171

67,193

3,357

(2,188)

(61,581)

6,952

Net loss and total comprehensive loss

(10,328)

Issuance of shares, net

^[2]

26,271

26,333

Expiration of share options

185

(185)

Cost of share-based payment

1,263

Ending Balance at Dec. 31, 2019

$ 233

$ 93,649

$ 4,435

$ (2,188)

$ (71,909)

$ 24,220

[1]	Net of issuance expenses of $ 133.
[2]	Net of issuance expenses of $ 2,290.

The amount of change in equity resulting from transactions and other events, other than those changes resulting from transactions with owners in their capacity as owners.

+ References + Details

Significant Accounting Policies [abstract]

The amount of residual interest in the assets of the entity after deducting all its liabilities.

+ References + Details

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Cash flows from operating activities:
Total comprehensive loss	$ (10,328)	$ (6,479)	$ (7,054)
Adjustments to profit or loss items:
Depreciation, amortization and impairment	1,741	463	394
Depreciation of leased systems	1,054	765	678
Finance expenses, net	1,430	1,157	274
Cost of share-based payment	1,263	710	1,028
Income taxes	422	209	169
Total adjustments to reconcile profit (loss)	5,910	3,304	2,543
Changes in asset and liability items:
Increase in trade receivables	(2,634)	(419)	(21)
Decrease (increase) in other accounts receivable	136	(595)	113
Decrease in long-term prepaid expenses		(217)
Increase in trade payables	175	859	310
Increase (decrease) in other accounts payable	(385)	482	163
Increase (decrease) in deferred revenues and other liabilities	555	(314)	523
Total changes in asset and liability	(2,153)	(204)	1,088
Cash paid and received during the year for:
Interest paid	(296)	(239)
Interest received	175	37	12
Income taxes paid	(552)	(192)	(56)
Total cash paid and received during the year	(673)	(394)	(44)
Net cash used in operating activities	(7,244)	(3,773)	(3,467)
Cash flows from investing activities:
Purchase of property and equipment and system components	(3,311)	(1,972)	(985)
Withdrawal of (investment in) short-term deposits, net	(120)	(50)	535
Withdrawal of (investment in) long-term deposits, net	985	886	(2,001)
Net cash used in investing activities	(2,446)	(1,136)	(2,451)
Cash flows from financing activities:
Receipt (repayment) of loan from bank, net	(3,000)		2,702
Receipt of government grants	176	149	186
Repayment of liability in respect of research and development grants	(601)	(414)	(375)
Repayment of lease liability	(434)
Issuance of warrants			150
Proceeds from issuance of shares, net	26,333		8,445
Net cash (used in) provided by financing activities	22,474	(265)	11,108
Exchange rate differences on cash and cash equivalents	(78)	(367)	145
Increase (decrease) in cash and cash equivalents	12,706	(5,541)	5,335
Cash and cash equivalents at the beginning of the year	8,968	14,509	9,174
Cash and cash equivalents at the end of the year	21,674	8,968	14,509
(a) Significant non-cash transactions:
Purchase of property and equipment on credit	183	280	469
long-term prepaid expenses not yet paid		$ 1,128

General

12 Months Ended

Dec. 31, 2019

General [abstract]

GENERAL

NOTE 1: GENERAL

A general description of the Company and its activity:

Brainsway Ltd. ("the Company") incorporated on November 7, 2006, is a commercial stage medical device company focused on the development and sale of non-invasive Deep Transcranial Magnetic Stimulation ("Deep TMS"), technology for the treatment of neurological and addiction disorders. The Deep TMS system ("system") uses magnetic pulses to stimulate neurons and consequently modulates the physiological activity of the brain.

In January 2013, the first commercial Deep TMS system received clearance by the United States Food and Drug Administration ("FDA") for the treatment of major depressive disorder ("MDD") in adults who failed to achieve satisfactory improvement from anti-depressant medication. In August 2018, the Company received clearance of marketing authorization by the FDA for the adjunct therapy for the treatment of obsessive-compulsive disorder (OCD) in adults.

Brainsway Ltd. ("the Company") and its wholly owned subsidiaries, Brainsway, Inc. ("Inc"), Moach R&D Services Ltd. ("Moach"), Brainsway USA Inc ("USA Inc"), collectively (the "Group") derive revenues from the sale and lease of its systems.

The Group has negative cash flows from operating activities and an operating loss of $ 7.2 million and $ 8.5 million for the year ended December 31, 2019, respectively. The Company's management and board of directors believe that the Company has the current funding to finance its business activity according to its plans in the foreseeable future.

The financial statements of the Company as of December 31, 2019 and 2018 and for each of the three years in the period ended December 31, 2019 were authorized for issuance in accordance with a resolution of the board of directors on March 22, 2020.

Significant Accounting Policies

12 Months Ended

Dec. 31, 2019

SIGNIFICANT ACCOUNTING POLICIES

NOTE 2: SIGNIFICANT ACCOUNTING POLICIES

The following accounting policies have been applied consistently in the financial statements for all periods presented, unless otherwise stated.

Basis of presentation of the financial statements:

These financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board.

The Company's financial statements have been prepared on a cost basis, except for certain financial instruments which are presented at fair value through profit or loss.

The Company has elected to present the profit or loss items using the function of expense method.

Consolidated financial statements:

The consolidated financial statements comprise the financial statements of companies that are controlled by the Company ("subsidiaries"). Control is achieved when the Company has power over the subsidiaries, is exposed or has rights to variable returns from its involvement with the subsidiaries and has the ability to affect those returns through its power over the subsidiaries. In assessing control, the effect of potential voting rights is considered only if they are substantive. The consolidation of the financial statements commences on the date on which control is obtained and ends when such control ceases.

The financial statements of the Company and of the subsidiaries are prepared as of the same dates and periods. The accounting policies in the financial statements of the subsidiaries have been applied consistently and uniformly with those applied in the financial statements of the Company. Significant intragroup balances and transactions and gains or losses resulting from transactions between the Company and the subsidiaries are eliminated in full in the consolidated financial statements.

Functional currency, presentation currency and foreign currency:

Functional currency and presentation currency:

The functional currency is the currency that best reflects the economic environment in which the Company operates and conducts its transactions, is separately determined for each Group entity and is used to measure its financial position and operating results. The Group determines the functional currency of each Group entity. The Company's functional and presentation currency is the US Dollar for all reported periods.

Transactions, assets and liabilities in foreign currency:

Transactions denominated in foreign currency are recorded upon initial recognition at the exchange rate at the date of the transaction. After initial recognition, monetary assets and liabilities denominated in foreign currency are translated at each reporting date into the functional currency at the exchange rate at that date. Exchange rate differences are recognized in profit or loss. Non-monetary assets and liabilities denominated in foreign currency and measured at cost are translated at the exchange rate at the date of the transaction. Non-monetary assets and liabilities denominated in foreign currency and measured at fair value are translated to the functional currency using the exchange rate prevailing at the date when the fair value was determined.

Cash equivalents:

Cash equivalents are considered as highly liquid investments, including unrestricted short-term bank deposits with an original maturity of three months or less from the date of investment or with a maturity of more than three months, but which are redeemable on demand without penalty and which form part of the Group's cash management.

Short-term deposits:

Short-term deposits are deposits with an original maturity of more than three months from the date of investment and which do not meet the definition of cash equivalents.

Allowance for doubtful accounts (accounting policy applied until December 31, 2017):

The allowance for doubtful accounts is determined in respect of specific trade receivables whose collection in the opinion of the Company's management, is doubtful. The Company did not recognize an allowance in respect of groups of customers that are collectively assessed for impairment since it did not identify any groups of customers which bear similar credit risks. Impaired receivables are derecognized when they are assessed as uncollectible.

See Note 2m with respect to accounting policy applied commencing January 1, 2018.

Revenue recognition:

On January 1, 2018, the Company initially adopted IFRS 15, "Revenue from Contracts with Customers" ("Standard"). The Company elected to apply the provisions of the Standard using the modified retrospective method with the application of certain practical expedients and without restatement of comparative data. There was no effect of the initial adoption of the new standard on the opening balance of retained earnings as at January 1, 2018.

IFRS 15 introduces a five-step model that applies to revenue earned from contracts with customers.

The accounting policy applied from January 1, 2018 regarding revenue recognition according to IFRS 15 is as follows:

The Company generates revenues from the sale and lease of its systems. The Company sells its products mainly to end users and to a lesser extent to third-party distributors outside of the United States and does not provide return rights.

Revenues from sale of systems:

Revenue from sale of systems are recognized at the point in time when control of the system is transferred to the customer, generally upon delivery of the system to the customer.

Revenue from rendering of services:

Revenue from rendering of extended warranty services is recognized over time, during the period the customer simultaneously receives and consumes the benefits provided by the Company's performance. The Company charges its customers based on payment terms agreed upon in specific agreements. When payments are made before or after the service is performed, the Company recognizes the resulting contract asset or liability. Revenue from services were insignificant for all reported periods.

Contract liabilities:

A contract liability, presented as deferred revenues, is the obligation to transfer goods or services to a customer for which the Company has received consideration (or an amount of consideration is due) from the customer. The Company elected to apply the practical expedient in IFRS 15 and does not provide disclosure of the remaining unsatisfied performance obligations with respect to contracts that have a term of up to one year. As of December 31, 2019, the Company has no unsatisfied performance obligation with a contract duration of more than one year.

Allocating the transaction price:

For contracts that consist of more than one performance obligation at contract inception the Company allocates the contract transaction price to each performance obligation identified in the contract on a relative stand-alone selling price basis. The stand-alone selling price is the price at which the Company would sell the promised goods or services separately to a customer.

Revenues from lease of systems:

The Company generates revenue from leasing its systems usually for a term of up to four years either for a fixed annual fee, or a variable fee, which is determined based on the higher of: fees per treatment (i.e. usage based fees) or an annual minimum fee as stated in the contract. The classification of a lease as a finance lease or operating lease is determined based on the substance of the lease agreement, and the assessment is made at the inception date of the lease pursuant to the provisions of the Standard. Leases in which substantially all the risks and rewards incidental to ownership of the leased asset are not transferred to the lessee are classified as operating leases. Revenue from operating leases are recognized on a straight-line basis over the lease term. Usage based fees are recognized as revenue when the Company is entitled to receive such revenue.

Government grants:

Government grants are recognized when there is reasonable assurance that the grants will be received and the Company will comply with all attached conditions.

Government grants received from the Israel Innovation Authority ("IIA") and repayable to the IIA through royalty-bearing sales are recognized upon receipt as a liability if future economic benefits are expected to be derived from the research project, resulting in royalty-bearing sales due to the IIA.

A liability for the grant is first measured at fair value using a discount rate that reflects a market rate of interest. The difference between the amount of the grant received and the fair value of the liability is accounted for as a government grant and recognized as a reduction of research and development expenses. After initial recognition, the liability is measured at amortized cost using the effective interest method. Royalty payments are recorded as a reduction of the liability.

If no economic benefits are expected from the research activity, the grant received are recognized as a reduction of the related research and development expenses. In that event, the royalty obligation is treated as a contingent liability in accordance with IAS 37.

In each reporting date, the Company evaluates whether there is reasonable assurance that the liability recognized, in whole or in part, will not be repaid based on the best estimate of future sales and using the original effective interest method and, if so, the appropriate amount of the liability is derecognized against a corresponding reduction in research and development expenses.

Grants received from the IIA prior to January 1, 2009, which are recognized as a liability, are accounted for as forgivable loans in accordance with IAS 20, based on the original terms of the loan.

Leases:

As described in Note 2s regarding the initial adoption of IFRS 16, "Leases" ("the Standard"), the Company elected to apply the provisions of the Standard using the modified retrospective method (without restatement of comparative data).

The accounting policy for leases applied effective from January 1, 2019, is as follows:

The Company accounts for a contract as a lease when the contract terms convey the right to control the use of an identified asset for a period of time in exchange for consideration.

For leases in which the Company is the lessee, the Company recognizes on the commencement date of the lease a right-of-use asset and a lease liability, excluding leases whose term is up to 12 months and leases for which the underlying asset is of low value. For these excluded leases, the Company has elected to recognize the lease payments as an expense in profit or loss on a straight-line basis over the lease term. In measuring the lease liability, the Company has elected to apply the practical expedient in the Standard and does not separate the lease components from the non-lease components (such as management and maintenance services, etc.) included in a single contract.

Leases which entitle employees to a company car as part of their employment terms are accounted for as employee benefits in accordance with the provisions of IAS 19 and not as subleases.

On the commencement date, the lease liability includes all unpaid lease payments discounted at the interest rate implicit in the lease, if that rate can be readily determined, or otherwise using the Company's incremental borrowing rate. After the commencement date, the Company measures the lease liability using the effective interest rate method.

On the commencement date, the right-of-use asset is recognized in an amount equal to the lease liability plus lease payments already made on or before the commencement date and initial direct costs incurred. The right-of-use asset is measured applying the cost model and depreciated over the shorter of its useful life and the lease term.

Following are the amortization periods of the right-of-use assets by class of underlying asset:

		Years
Lease facilities		2 to 3
Motor vehicles		3

The Company tests for impairment of the right-of-use asset whenever there are indications of impairment pursuant to the provisions of IAS 36.

The accounting policy for leases applied until December 31, 2018, is as follows:

The criteria for classifying leases as finance or operating leases depend on the substance of the agreements and is determined at the inception of the lease in accordance with IAS 17.

Leases in which substantially all the risks and rewards of ownership of the leased asset are not transferred are classified as operating leases. Operating lease payments are recognized as an expense in profit or loss on a straight-line basis over the lease term.

Taxes on income:

Current or deferred taxes are recognized in profit or loss, except to the extent that they relate to items which are recognized in other comprehensive income or equity.

Current taxes:

The current tax liability is measured using the tax rates and tax laws that have been enacted or substantively enacted at the reporting date, as well as adjustments required in connection with the tax liability in respect of previous years.

Deferred taxes:

Deferred taxes are computed in respect of temporary differences between the carrying amounts in the financial statements and the amounts attributed for tax purposes.

Deferred taxes are measured at the tax rate that is expected to apply when the asset is realized or the liability is settled, based on tax laws that have been enacted or substantively enacted by the reporting date.

Deferred tax assets are reviewed at each reporting date and reduced to the extent that it is not probable that they will be utilized. Temporary differences that can be deducted for which deferred tax assets had not been recognized are reviewed at each reporting date and a respective deferred tax asset is recognized to the extent that utilization is probable.

Taxes that would apply in the event of the disposal of investments in subsidiaries have not been taken into account in computing deferred taxes, as long as the disposal of the investments in subsidiaries is not probable in the foreseeable future. Also, deferred taxes that would apply in the event of distribution of earnings by subsidiaries as dividends have not been taken into account in computing deferred taxes, since the distribution of dividends does not involve an additional tax liability or since it is the Company's policy not to initiate distribution of dividends from a subsidiary that would trigger an additional tax liability.

Deferred taxes are offset if there is a legally enforceable right to offset a current tax asset against a current tax liability and the deferred taxes relate to the same taxpayer and the same taxation authority.

Leased systems, system components and other property and equipment, net:

The cost of self-constructed systems (leased systems) includes the cost of materials, direct labor and share-based payment, as well as any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

System components are stated at the lower of cost and net realizable value. Cost is determined on a weighted average basis. Net realizable value is based on estimated selling prices less estimated costs to be incurred to completion and disposal. The impairment of leased systems and system components recognized in cost of revenues was $1,191,$340 and $225 for the years ended December 31, 2019, 2018 and 2017, respectively.

Depreciation is calculated on a straight-line basis over the useful life of the assets at annual rates as follows:

		%
Leased systems		15
Laboratory equipment		15
Computers		33
Office furniture and equipment		6 - 15
Leasehold improvements		(*)

(*) Leasehold improvements are depreciated on a straight-line basis over the shorter of the lease term (including the extension option held by the Group and intended to be exercised) and the expected life of the improvement.

The useful life and depreciation method of an asset are reviewed at least each year-end and any changes are accounted for prospectively as a change in accounting estimate.

Impairment of non-financial assets:

The Company evaluates the need to record an impairment of non-financial assets whenever events or changes in circumstances indicate that the carrying amount is not recoverable.

If the carrying amount of non-financial assets exceeds their recoverable amount, the assets are reduced to their recoverable amount. The recoverable amount is the higher of fair value less costs of sale and value in use. In measuring value in use, the expected cash flows are discounted using a pre-tax discount rate that reflects the risks specific to the asset.

The recoverable amount of an asset that does not generate independent cash flows is determined for the cash-generating unit to which the asset belongs. Impairment losses are recognized in profit or loss.

An impairment loss of an asset is reversed only if there have been changes in the estimates used to determine the asset's recoverable amount since the last impairment loss was recognized. Reversal of an impairment loss, as above, shall not be increased above the lower of the carrying amount that would have been determined (net of depreciation or amortization) had no impairment loss been recognized for the asset in prior years and its recoverable amount. The reversal of impairment loss of an asset presented at cost is recognized in profit or loss.

Financial instruments:

On January 1, 2018, the Company initially adopted IFRS 9, "Financial Instruments" ("the Standard"). The Company elected to apply the provisions of the Standard retrospectively with certain reliefs without restatement of comparative data. The first time adoption of IFRS 9 had no impact on accumulated deficit as of January 1, 2018.

Impairment of financial assets:

The Company evaluates at the end of each reporting period the loss allowance for financial debt instruments which are not measured at fair value through profit or loss. The Company distinguishes between two types of loss allowances:

Debt instruments whose credit risk has not increased significantly since initial recognition, or whose credit risk is low - the loss allowance recognized in respect of this debt instrument is measured at an amount equal to the expected credit losses within 12 months from the reporting date; or

An impairment loss on debt instruments measured at amortized cost is recognized in profit or loss with a corresponding loss allowance that is offset from the carrying amount of the financial asset, whereas the impairment loss on debt instruments measured at fair value through other comprehensive income is recognized in profit or loss with a corresponding loss allowance that is recorded in other comprehensive income and not as a reduction of the carrying amount of the financial asset in the statement of financial position.

The Company has short-term financial assets such as trade receivables in respect of which the Company applies a simplified approach and measures the loss allowance in an amount equal to the lifetime expected credit losses.

Derecognition of financial assets:

A financial asset is derecognized only when the following criteria are met:

The contractual rights to the cash flows from the financial asset expire; or

The Company has transferred substantially all the risks and rewards deriving from the contractual rights to receive cash flows from the financial asset or has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset; or

The Company has retained its contractual rights to receive cash flows from the financial asset but has assumed a contractual obligation to pay the cash flows in full without material delay to a third party.

Financial liabilities:

Financial liabilities within the scope of the standard are initially recognized at fair value less transaction costs that are directly attributable to the issue of the financial liability, excluding financial liabilities measured at fair value through profit or loss whose transaction costs are carried to profit or loss.

On the date of initial recognition, the Company classified financial liabilities measured at fair value through profit or loss. Changes in their fair value which can be attributed to changes in the Company's credit risk profile are carried to other comprehensive income.

After initial recognition, the Company measures all financial liabilities at amortized cost, except for financial liabilities at fair value through profit or loss such as derivatives.

Derecognition of financial liabilities:

A financial liability is derecognized only when it is extinguished, that is when the obligation is discharged, cancelled or expires. A financial liability is extinguished when the debtor discharges the liability by paying in cash, other financial assets, goods or services; or is legally released from the liability.

Issue of a unit of securities:

The issue of a unit of securities involves the allocation of the proceeds received (before issue expenses) to the securities issued in the unit based on the following order: financial derivatives and other financial instruments measured at fair value in each period. Then fair value is determined for financial liabilities that are measured at amortized cost. The proceeds allocated to equity instruments are determined to be the residual amount. Issue costs are allocated to each component pro rata to the amounts determined for each component in the unit.

Fair value measurement:

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurement is based on the assumption that the transaction will take place in the asset's or the liability's principal market, or in the absence of a principal market, in the most advantageous market.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

Fair value measurement of a non-financial asset takes into account a market participant's ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

All assets and liabilities measured at fair value or for which fair value is disclosed are categorized into levels within the fair value hierarchy based on the lowest level input that is significant to the entire fair value measurement:

Level 1	—	quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2	—	inputs other than quoted prices included within Level 1 that are observable either directly or indirectly.

Level 3	—	inputs that are not based on observable market data (valuation techniques which use inputs that are not based on observable market data).

Provisions:

A provision in accordance with IAS 37 is recognized when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

Employee benefit liabilities:

Short-term employee benefits:

Short-term employee benefits are benefits that are expected to be settled wholly before twelve months after the end of the annual reporting period in which the employees render the related services. These benefits include salaries, paid annual and sick leave, recreation and social security contributions and are recognized as expenses as the services are rendered. A liability in respect of a cash bonus or a profit-sharing plan is recognized when the Company has a legal or constructive obligation to make such payment as a result of past service rendered by an employee and a reliable estimate of the amount can be made.

Post-employment benefits:

The Group has defined contribution plans pursuant to Section 14 of the Severance Pay Law ("Section 14") under which the Group pays fixed contributions and has no legal or constructive obligation to pay further contributions if the fund does not hold sufficient amounts to pay all employee benefits relating to employee service in the current and prior periods.

The Israeli Severance Pay Law, 1963 ("Severance Pay Law"), specifies that employees are entitled to severance payment following the termination of their employment. Under the Severance Pay Law, the severance payment is calculated as one month salary for each year of employment, or a portion thereof. The majority of the Company's liability for severance pay is covered by the provisions of. Under Section 14, employees are entitled to monthly deposits, at a rate of 8.33% of their monthly salary, made on behalf of the employee with insurance companies. Payments in accordance with Section 14 release the Company from any future severance payments in respect of those employees. As a result, the Company does not recognize any liability for severance pay due to these employees and the deposits under Section 14 are not recorded as an asset in the Company's balance sheet.

Contributions to the defined contribution plan in respect of severance or retirement pay are recognized as an expense when contributed concurrently with performance of the employee's services and no additional provision is required in the financial statements. See also Note 14.

Share-based payment transactions:

The Company's employees and other service providers are entitled to remuneration in the form of equity-settled share-based payment.

The cost of equity-settled transactions is recognized in profit or loss together with a corresponding increase in equity during the period which the performance and/or service conditions are to be satisfied ending on the date on which the relevant employees become entitled to the award ("the vesting period"). The cumulative expense recognized for equity-settled transactions at the end of each reporting date includes the Group's best estimate of the number of equity instruments that will ultimately vest.

The cost of equity-settled transactions with employees is measured at the fair value of the equity instruments granted at grant date. The fair value of option granted is determined using the Binomial Lattice option-pricing model ("Binomial model"). The Binomial model takes into account variables such as volatility, dividend yield rate, and risk-free interest rate and also allows for the use of dynamic assumptions and considers the contractual term of the option, the probability that the option will be exercised prior to the end of its contractual life, and the probability of termination or retirement of the option holder in computing the value of the option.

No expense is recognized for awards that do not ultimately vest.

Net loss per share:

Net loss per share is calculated by dividing the net loss attributable to equity holders of the Company by the weighted number of Ordinary shares outstanding during the period.

Basic net loss per share includes only shares that are outstanding during the period.

Potential Ordinary shares are included in the computation of diluted net loss per share when such shares are dilutive. Potential Ordinary shares that are converted during the period are included in diluted net loss per share only until the conversion date and from that date in basic net loss per share.

Changes in accounting policies – initial adoption of new financial reporting and accounting standards and amendments to existing financial reporting and accounting standards:

1. Initial adoption of IFRS 16, "Leases"

In January 2016, the IASB issued IFRS 16, "Leases" ("IFRS 16"), which replaces IAS 17, "Leases", IFRIC 4, "Determining whether an Arrangement contains a Lease", SIC-15, "Operating Leases-Incentives" and SIC-27, "Evaluating the Substance of Transactions Involving the Legal Form of a Lease." IFRS 16 sets out the principles for the recognition, measurement, presentation and disclosure of leases and requires lessees to account for all leases under a single on-balance sheet model similar to the accounting for finance leases under IAS 17. The standard includes two recognition exemptions for lessees—leases of 'low-value' assets (e.g., personal computers) and short-term leases (i.e., leases with a lease term of 12 months or less). At the commencement date of a lease, a lessee will recognize a liability to make lease payments (i.e., the lease liability) and an asset representing the right to use the underlying asset during the lease term (i.e., the right-of-use asset). Lessees will be required to separately recognize the interest expense on the lease liability and the depreciation expense on the right-of-use asset.

Lessees will be also required to remeasure the lease liability upon the occurrence of certain events (e.g., a change in the lease term, a change in future lease payments resulting from a change in an index or rate used to determine those payments). The lessee will generally recognize the amount of the remeasurement of the lease liability as an adjustment to the right-of-use asset.

Lessor accounting under IFRS 16 is substantially unchanged from accounting under IAS 17. Lessors will continue to classify all leases using the same classification principle as in IAS 17 and distinguish between two types of leases: operating and finance leases.

The Company adopted the modified retrospective approach and that the effect of the first-time adoption of IFRS 16 as of January 1, 2019 resulted in an increase of approximately $1,400 to the Company's total assets and corresponding liabilities. In the initial application of the Standard, the Company elected to apply a practical expedient for using a single discount rate to a portfolio of leases with reasonably similar characteristics.

2. Initial adoption of IFRIC 23, "Uncertainty over Income Tax Treatments"

In June 2017, the IASB issued IFRIC 23, "Uncertainty over Income Tax Treatments" ("the Interpretation"). The Interpretation clarifies the accounting for recognition and measurement of assets or liabilities in accordance with the provisions of IAS 12, "Income Taxes", in situations of uncertainty involving income taxes. The Interpretation provides guidance on considering whether some tax treatments should be considered collectively, examination by the tax authorities, measurement of the effects of uncertainty involving income taxes on the financial statements and accounting for changes in facts and circumstances in respect of the uncertainty.

The Interpretation was adopted on January 1, 2019, based on full retrospective adoption, without restating comparative data. There was no impact on the financial statements as a result of adopting the Interpretation.

Significant Accounting Judgments, Estimates and Assumptions Used In the Preparation of the Financial Statements

12 Months Ended

Dec. 31, 2019

Significant Accounting Judgments, Estimates and Assumptions Used In the Preparation of the Financial Statements [abstract]

SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS USED IN THE PREPARATION OF THE FINANCIAL STATEMENTS

NOTE 3: SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS USED IN THE PREPARATION OF THE FINANCIAL STATEMENTS

In the process of applying the significant accounting policies in the financial statements, the Group has made the following judgments, estimates and assumptions, which have the most significant effect on the amounts recognized in the financial statements:

Judgments:

Classification of leases:

Evaluation of whether to classify a lease as a finance lease or an operating lease in accordance with the criteria stipulated in IFRS 16 requires significant judgment.

Estimates and assumptions:

The preparation of the financial statements requires management to make estimates and assumptions that have an effect on the application of the accounting policies and on the reported amounts of assets, liabilities, revenues and expenses. Changes in accounting estimates are reported in the period of the change in estimate.

The key assumptions made in the financial statements concerning uncertainties at the reporting date and the critical estimates computed by the Group that may result in a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

●

Grants from the IIA:

Government grants received from the IIA are recognized as a liability if future economic benefits are expected from the research and development activity that will result in royalty-bearing sales. There is uncertainty regarding the estimated future cash flows and discount rate used to measure the amount of the liability.

●

Provision for allowance for doubtful accounts on trade receivables:

The Group uses a provision matrix to calculate the allowance for doubtful accounts based on expected credit losses (ECL's) for trade receivables. The provision rates are based on days past due for its various customers. The provision matrix is initially based on the Group's historical observed default rates as well as forward-looking information. At each reporting date, the historical observed default rates are updated and changes in the forward-looking estimates are analyzed. The amount of ECLs is sensitive to changes in circumstances and forecast economic conditions. The Group's historical credit loss experience and forecast of economic conditions may also not be representative of customers' actual default in the future. The information about the ECLs on the Group's trade receivables is disclosed in Note 6.

●

Determining the fair value of share-based payment transactions:

The fair value of share-based payment transactions is determined upon initial recognition by the Binomial model. The Binomial model is based on share price and exercise price and assumptions regarding expected volatility, term of share option, dividend yield and risk-free interest rate.

Cash and Cash Equivalents

12 Months Ended

Dec. 31, 2019

Cash and cash equivalents [abstract]

CASH AND CASH EQUIVALENTS

NOTE 4: CASH AND CASH EQUIVALENTS

	December 31,
	2019		2018
Cash for immediate withdrawal	$	11,640	$	5,965
Cash equivalents—short-term deposits (1)		10,034		3,003
	$	21,674	$	8,968

(1)

The deposits earn annual interest at the respective term of the deposits of approximately 1.5%.

Short-Term Deposits

12 Months Ended

Dec. 31, 2019

Short-term Deposits [abstract]

SHORT-TERM DEPOSITS

NOTE 5: SHORT-TERM DEPOSITS

	December 31,
	2019		2018
Bank deposits (1)	$	221	$	101

(1)

Short-term deposits at banks are for periods of up to one year. The deposits earn annual interest at the respective term of the deposits of approximately 1.5%.

Trade Receivables, Net

12 Months Ended

Dec. 31, 2019

Trade and other receivables [abstract]

TRADE RECEIVABLES, NET

NOTE 6: TRADE RECEIVABLES, NET

Trade receivables, net:

	December 31,
	2019			2018
Open accounts (1)	$	6,279		$	3,165
Credit cards		158			74
Less—allowance for doubtful accounts		(930	)		(335	)
Trade receivables, net	$	5,507		$	2,904

(1)

Trade receivables generally have 90 day credit terms. Certain customers payments are made through monthly credit card transactions.

Impaired debts are accounted for through recording an allowance for doubtful accounts.

Movement in allowance for doubtful accounts:

	U.S. dollars in thousands
Balance as of January 1, 2018	$	288
Provision for the year		335
Derecognition of bad debts		(249	)
Reversal in respect of collected doubtful accounts		(39	)
Balance as of December 31, 2018		335
Provision for the year		835
Derecognition of bad debts		(240	)
Reversal in respect of collected doubtful accounts		—
Balance as of December 31, 2019	$	930

Following is information about the credit risk exposure of the Company's trade receivables:

December 31, 2019:
	U.S. dollars in thousands
	Not past due		< 30 days		30 - 60 days		61 - 90 days		91 - 120 days		>120 days		Total
	U.S. dollars in thousands
Gross carrying amount	$	2,619	$	1,133	$	544	$	461	$	247	$	1,433	$	6,437
Allowance for doubtful accounts	$	7	$	11	$	8	$	32	$	69	$	803	$	930
Trade receivables, net		2,612		1,122		536		429		178		630	$	5,507

December 31, 2018:
	U.S. dollars in thousands
	Not past due		< 30 days		30 - 60 days		61 - 90 days		91 - 120 days		>120 days		Total
	U.S. dollars in thousands
Gross carrying amount	$	1,210	$	953	$	207	$	305	$	266	$	298	$	3,239
Allowance for doubtful accounts	$	148	$	39	$	12	$	23	$	23	$	90	$	335
Trade receivables, net		1,062		914		195		282		243		208	$	2,904

As of December 31, 2019, the Company has over 90 days past due trade receivables, net of $ 808, of which $ 568 were paid between the reporting date and the date of the approval of the financial statements. The Company expects to collect the entire net amount of these debts.

Other Accounts Receivable

12 Months Ended

Dec. 31, 2019

Other Accounts Receivable [Abstract]

OTHER ACCOUNTS RECEIVABLE

NOTE 7: OTHER ACCOUNTS RECEIVABLE

	December 31,
	2019		2018
Government authorities	$	378	$	738
Accrued income-IIA		71		332
Consumables		306		91
Prepaid expenses and other		672		344
	$	1,427	$	1,505

Property and Equipment, Net

12 Months Ended

Dec. 31, 2019

Property, plant and equipment [abstract]

PROPERTY AND EQUIPMENT, NET

NOTE 8: PROPERTY AND EQUIPMENT, NET

December 31, 2019:

	Leased systems			System Components			Laboratory equipment and Computers		Right of use assets		Office furniture and equipment		Leasehold improvements			Total
Cost:
Balance at January 1, 2019	$	6,369		$	2,717		$	794	$	1,414	$	82	$	52		$	11,428
Additions		—			5,521			37		—		8		—			5,566
Transfer to Leased systems		2,150			(2,150	)		—		—		—		—			—
Reductions		(368	)(**)		(2,971	)(***)		—		—		—		—			(3,339	)
Balance at December 31, 2019		8,151			3,117			831		1,414		90		52			13,655

Accumulated depreciation:
Balance at January 1, 2019		1,679			—			613		—		44		52			2,388
Additions		1,054			—			81		460		6		—			1,602
Reductions		(73	)		—			—		—		—		—			(73	)

Balance at December 31, 2019		2,660			—			694		460		50		52			3,916

Depreciated cost at December 31, 2019	$	5,491		$	3,117		$	137	$	954	$	40	$		(*)	$	9,739

(*)

Represents an amount lower than $ 1

(**)

Derived mainly from systems leased to customers and sold

(***)

Includes impairment charge of $1,191 for the year ended December 31, 2019.

December 31, 2018:

	Leased systems			System Components			Laboratory equipment and Computers		Office furniture and equipment		Leasehold improvements			Total
Cost:
Balance at January 1, 2018	$	4,627		$	3,553		$	633	$	75	$	52		$	8,940
Additions		—			2,645			161		7		—			2,813
Transfer to Leased systems		2,458			(2,458	)		—		—		—			—
Reductions		(716	)(**)		(1,023	)(***)		—		—		—			(1,739	)
Balance at December 31, 2018		6,369			2,717			794		82		52			10,014

Accumulated depreciation:
Balance at January 1, 2018		1,187			—			554		38		52			1,831
Additions		817			—			59		6		—			882
Reductions		(325	)		—			—		—		—			(325	)

Balance at December 31, 2018		1,679			—			613		44		52			2,388

Depreciated cost at December 31, 2018	$	4,690		$	2,717		$	181	$	38	$	—	(*)	$	7,626

(*)

Represents an amount lower than $ 1.

(**)

Derived mainly from systems leased to customers and sold

(***)

Includes impairment charge of $340 for the year ended December 31, 2018.

Fair Value Measurement

12 Months Ended

Dec. 31, 2019

Fair Value Measurement [abstract]

FAIR VALUE MEASUREMENT

NOTE 9: FAIR VALUE MEASUREMENT

The following table presents the fair value measurement hierarchy for the Group's assets and liabilities.

Quantitative disclosures of the fair value measurement hierarchy of the Group's assets and liabilities as of December 31, 2019 and 2018:

		Fair value hierarchy
	Valuation date	Level 1		Level 2		Level 3		Total
Liabilities measured at fair value:
Liability in respect of warrants	31.12.2019	$	—	$	78	$	—	$	78

Liability in respect of warrants	31.12.2018	$	—	$	140	$	—	$	140

Trade Payables

12 Months Ended

Dec. 31, 2019

Trade and other payables [abstract]

TRADE PAYABLES

NOTE 10: TRADE PAYABLES

	December 31,
	2019		2018
Open debt	$	1,320	$	2,243

Trade payables are non-interest bearing and are normally settled on up to 90 day terms.

Other Accounts Payable

12 Months Ended

Dec. 31, 2019

Other Accounts Payable [abstract]

OTHER ACCOUNTS PAYABLE

NOTE 11: OTHER ACCOUNTS PAYABLE

	December 31,
	2019		2018
Employee and payroll accruals	$	1,216	$	1,067
Accrued expenses		1,620		2,161
Tax payable		1		130
Liabilities to related parties (1)		128		101
Lease liabilities		414		—

	$	3,379	$	3,459

(1)

A current non-interest bearing account.

Non-Current Liabilities

12 Months Ended

Dec. 31, 2019

Non-Current Liabilities [Abstract]

NON-CURRENT LIABILITIES

NOTE 12: NON-CURRENT LIABILITIES

Composition:

	December 31,
	2019		2018
Loan from bank(c)	$	—	$	2,083
Warrants(c)		78		140
Liability in respect of research and development grants(d)		5,367		4,980
Deferred revenues and other liabilities		1,690		1,108
Lease liabilities(b)		663		—

	$	7,798	$	8,311

Lease liabilities:

	U.S. dollars in thousands
Maturity analysis:
Less than one year		525
One to five years		1,106
Total lease commitments		1,631
Impact of discounting remaining lease payments		217
Total lease liabilities as of January 1, 2019		1,414

Lease liabilities as of December 31, 2019:		1,077
Current		414
Non-current		663

Total	$	1,077

Loan from bank:

On August 17, 2017, the Company entered into an agreement for the receipt of a bank credit facility of up to $ 6,000 (the "Bank Credit Facility"). $ 3,000 was withdrawn during 2017 ("the first facility") and bear annual interest of 3-months LIBOR plus 6%. The remaining credit facility ("the second facility") may be withdrawn until March 15, 2018 bearing annual interest 3-months LIBOR plus 6.75%. The interest on the loans is payable on a quarterly basis and the loan principal is repayable in eight equal consecutive quarterly installments, whereby the first installment is due at the end of 18 and 12 months from the date of withdrawal of the loans from the first and second facilities, respectively. Also, according to the agreement, the Company will grant the bank warrants to purchase its ordinary shares for the total exercise price of up to $ 600. The warrants are exercisable for a period of five years from the date of any grant at an exercise price of $ 5.02 per share to be settled in cash or a cashless exercise mechanism.

On October 3, 2017, the Company granted the bank 59,761 warrants at an aggregate exercise price of $300 as a condition for receiving the first facility.

The fair value of the warrants at the grant date was estimated at $ 150 and the remaining balance of $2,850 was attributed to the loan. Transaction costs of $ 156 were allocated based on to the relative fair value of the warrants and loan. The warrants are classified as a financial liability and measured at fair value through profit or loss.

The remaining warrants will be granted on the date of withdrawal of the loan from the second facility, so that the exercise amount will constitute 10% of the loan actually withdrawn from the second facility. The Company is entitled to make an early repayment of all or part of the loans. In such a case, the Company will pay the bank an early repayment fee as detailed in the agreement.

As part of the agreement, and as a condition for using the first and second facilities, the Group undertook to provide the bank fixed and floating charges on all its assets, including property, cash, goodwill, intellectual property, rights and assets of any kind. In addition, the Group undertook to sign a guarantee letter, unlimited in amount, to secure the loans that will be provided by virtue of the agreement. Also, a senior fixed charge, unlimited in amount, was provided on a specific deposit in which an amount of not less than $ 2,000 was deposited ("the deposited amount"). It was agreed that if by March 16, 2018, the amount of loans actually withdrawn is less than $ 6,000, the deposited amount would be placed at one-third of the actual amount of loans outstanding on that date.

In accordance with the amendments to the agreement signed up to March 14, 2019, loans under the Second facility may be withdrawn until May 30, 2019. The other terms of the first and second facility remain unchanged.

On May 5, 2019, following the IPO, the Company repaid the balance of the loan.

Government grants:

Moach received from the Israeli Government participation grants in research and development and, in return, it is currently obligated to pay royalties amounting to 3% of sales of products from such grants up to 100% of total grants received.

As of December 31, 2019, the maximum royalties payable by the Company in the future in respect of active projects is $12,878, including interest at the LIBOR rate. Through December 31, 2019, royalties paid were $1,983.

Financial Instruments

12 Months Ended

Dec. 31, 2019

Disclosure of detailed information about financial instruments [abstract]

FINANCIAL INSTRUMENTS

NOTE 13: FINANCIAL INSTRUMENTS

Classification of financial assets and financial liabilities:

The financial assets and financial liabilities in the statement of financial position are measured at amortized cost, except financial liabilities in respect of warrants at fair value through profit or loss. The balance of financial liabilities in respect of warrants as of December 31, 2019 and 2018 was $ 78 and $140, respectively.

Financial risks factors:

The Group's activities expose it to various financial risks such as market risks (foreign currency risk, interest risk), credit risk and liquidity risk. The Group's comprehensive risk management plan focuses on activities that reduce to a minimum any possible adverse effects on the Group's financial performance.

The Company's Chief Financial Officer oversees the management of these risks in accordance with the policies approved by the board of directors.

Market risks:

Foreign currency risk:

The currency exposure arises from current accounts and deposits that are mainly managed in NIS and from liability in respect of employee payroll accruals that are paid in NIS.

Interest rate risk:

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.

The Company's exposure to the risk of changes in market interest rates relates primarily to the Company's long-term liabilities in respect of government grants received from IIA.

Regulators in many countries are in the process of replacing benchmark Interbank Offered Rates (IBORs), of which one of the most common is the LIBOR, with risk-free interest rate alternatives (RFRs). The replacement of IBORs with RFRs is expected to occur gradually until the end of 2021.

The repayment of grants received by the Company from 2018 have interest rate that reference LIBOR and are expected to be repaid after 2021. As of December 31, 2019, the carrying amount of the financial liabilities is $387. Since an alternative interest rate was not determined by the IIA yet, at this stage the Company is unable to determine the effects, if any, that the discontinuance of IBORs will have on its financial instruments that reference the IBORs.

Credit risk:

Credit risk is the risk that a counterparty will not meet its obligations as a customer or under a financial instrument leading to a loss to the Group. The Group is exposed to credit risk from its operating activity (primarily trade receivables).

Liquidity risk:

The Group monitors its risk of a shortage of cash using a quarterly budget.

The table below presents the maturity profile of the Group's financial liabilities based on contractual undiscounted payments:

December 31, 2019:

	Less than one year		1 to 2 years		2 to 3 years		3 to 4 years		4 to 5 years		> 5 years		Total
Trade payables	$	1,320	$	—	$	—	$	—	$	—	$	—	$	1,320
Other accounts payable		2,965		—		—		—		—		—		2,965
Long-term liabilities		1		1		—		—		—		—		2
Liability in respect of research and development grants		810		1,050		1,335		1,635		1,980		6,792		13,602
Lease liability		572		449		271		—		—		—		1,292

	$	5,668	$	1,500	$	1,606	$	1,635	$	1,980	$	6,792	$	19,181

December 31, 2018:

	Less than one year		1 to 2 years		2 to 3 years		3 to 4 years		4 to 5 years		> 5 years		Total
Trade payables	$	2,243	$	—	$	—	$	—	$	—	$	—	$	2,243
Other accounts payable		3,394		—		—		—		—		—		3,394
Loan from bank		988		1,637		773		—		—		—		3,398
Long-term liabilities		2		1		—		—		—		—		3
Liability in respect of research and development grants		631		855		1,185		1,545		1,890		7,378		13,484

	$	7,258	$	2,493	$	1,958	$	1,545	$	1,890	$	7,378	$	22,521

Fair value:

The carrying amount of cash and cash equivalents, short-term deposits, trade receivables, other accounts receivable, trade payables, other accounts payable, warrants, long-term liabilities approximate their fair value.

Financial liabilities measured at fair value:

December 31, 2019:

	Level 2
Opening balance at January 1, 2019	$	140
Amounts transferred to the statement of comprehensive loss as finance income		(62	)

Closing balance at December 31, 2019	$	78

During 2017, there were no transfers between Level 1 to Level 3 for fair value measurements of financial instruments, however there were transfers into Level 2 for fair value measurements of financial instruments.

Sensitivity tests relating to changes in foreign currency:

	December 31,
	2019			2018
Sensitivity test to changes in the NIS exchange rate:
Gain (loss) from the change:
Increase of 5% in exchange rate		88			3
Decrease of 5% in exchange rate		(88	)		(3	)

As of December 31, 2019, the Company has excess of financial assets over financial liabilities in NIS in relation to US dollar of $ 1,761.

As of December 31, 2019, the Company has excess of financial assets over financial liabilities in Euro and Yen in relation to US dollar of $ 1,487 and $415, respectively. An increase or decrease of 5% of the US dollar relative to the Euro or Yen would not have a significant effect on the Company.

Sensitivity tests and principal work assumptions:

The selected changes in the relevant risk variables were determined based on management's estimate as to reasonable possible changes in these risk variables.

The Company has performed sensitivity tests of principal market risk factors that are liable to affect its reported operating results or financial position. The sensitivity tests present the profit or loss in respect of each financial instrument for the relevant risk variables chosen for that instrument as of each reporting date. The test of risk factors was determined based on the materiality of the exposure of the operating results or financial condition of each risk with reference to the functional currency and assuming that all the other variables are constant.

Employee Benefits and Liabilities

12 Months Ended

Dec. 31, 2019

Employee Benefits and Liabilities [Abstract]

EMPLOYEE BENEFITS AND LIABILITIES

NOTE 14: EMPLOYEE BENEFITS AND LIABILITIES

Employee benefits consist of short-term and post-employment benefits.

Defined contribution plans:

Section 14 to the Severance Pay Law, 1963 applies to all of the Company's employees pursuant to which the fixed contributions paid by the Group into pension funds and/or policies of insurance companies release the Group from any additional liability to employees for whom said contributions were made. These contributions benefits represent defined contribution plans.

Expense in respect of defined contribution plans was $325 and $299 for the years ended December 31, 2019 and 2018, respectively.

Taxes on Income

12 Months Ended

Dec. 31, 2019

Taxes on Income [Abstract]

TAXES ON INCOME

NOTE 15: TAXES ON INCOME

Tax rates applicable to the Company and subsidiaries:

Tax rate applicable to Company and Moach:

In December 2016, the Economic Efficiency Law (Legislative Amendments for Applying the Economic Policy for the 2017 and 2018 Budget Years), 2017 was approved, which reduces the corporate income tax rate to 24% (from 25%) effective from January 1, 2017 and to 23% effective from January 1, 2018.

The Israeli corporate income tax rate was 24% for 2017 and 23% for 2018, 2019 and thereafter.

A company is taxable on its real capital gains at the corporate income tax rate in the year of sale.

Tax rate applicable to USA Inc and Inc:

The weighted tax rate for 2017 and thereafter for companies incorporated in the US was 27% and 35%-40% (Federal, State and City tax of the city where the company operates), respectively.

On December 22, 2017, the Tax Cuts and Jobs Act (the "Act") was enacted into law. The income tax effects of changes in tax laws are recognized in the period when enacted. The Act provides for numerous significant tax law changes and modifications with varying effective dates, which include reducing the corporate federal income tax rate from 35% to 21%, creating a semi-territorial tax system (with a one-time mandatory tax on previously deferred foreign earnings), broadening the tax base and allowing for immediate capital expensing of certain qualified property.

The Act also changed to a semi-territorial system. As a result, a one-time transition tax is imposed on the accumulated earnings and profits of the foreign subsidiaries of the US entities. The Company's subsidiaries in the United States do not have any profitable foreign subsidiaries and, therefore, the remaining provisions of the Act have no material impact on the Company's results of operations.

The main differences between the statutory corporate tax rate and the effective tax rate are carryforward losses in Israel in respect of which no deferred taxes were recorded and a current tax expense in respect of income of USA Inc and Inc.

Tax benefits under the Israel Law for the Encouragement of Capital Investments, 1959 ("Law") and Amendment to the Law for the Encouragement of Capital Investments, 1959 (Amendment 73):

In December 2016, the Economic Efficiency Law (Legislative Amendments for Applying the Economic Policy for the 2017 and 2018 Budget Years), 2016 which includes Amendment 73 to the Law for the Encouragement of Capital Investments ("the amendment") was published. According to the amendment, a "beneficiary enterprise" located in development area A will be subject to a tax rate of 7.5% instead of 9% effective from January 1, 2017 and thereafter (the tax rate applicable to preferred enterprises located in other areas remains at 16%).

The amendment also prescribes special tax tracks for technological enterprises, which became effective in 2017, as follows:

Technological preferred enterprise—an enterprise for which total consolidated revenues of its parent company and all subsidiaries are less than NIS 10 billion. A technological preferred enterprise, as defined in the amendment, which is located in the center of Israel will be subject to tax at a rate of 12% on profits deriving from intellectual property (in development area A - 7.5%).

Any dividends distributed to a "foreign company", as defined in the amendment, deriving from income from the technological preferred enterprise will be subject to tax at a rate of 4%.

The Law for the Encouragement of Industry (Taxation), 1969:

Moach has the status of an "industrial company", as defined by this law. According to this status and by virtue of regulations published thereunder, the Company is entitled to claim a deduction of accelerated depreciation on equipment used in industrial activities, as determined in the regulations issued under the Inflationary Law. The Company is also entitled to amortize a patent or rights to use a patent or intellectual property that are used in the enterprise's development or advancement, to deduct issuance expenses for shares listed for trading and to file a consolidated report under certain conditions.

Subject to meeting criteria determined in the Law and amendment, at the time Moach becomes profitable for tax purposes, Moach will be entitled to various corporate tax benefits, as implied by the Law and amendment.

Tax assessments:

The Company received final tax assessments through the 2011 tax year. The subsidiary, Moach, received final tax assessments through 2012. The subsidiary, Inc, received final tax assessments through the 2014 tax year.

Carryforward losses for tax purposes:

Carryforward losses for tax purposes as of December 31, 2019 are approximately $3.5 million in Brainsway Ltd. and approximately $47 million in Moach.

Deferred taxes:

As it is not probable that taxable income will be derived in the next years, a valuation allowance was established in respect of deferred taxes of the above carryforward losses.

Contingent Liabilities, Commitments and Charges

12 Months Ended

Dec. 31, 2019

Disclosure of contingent liabilities [abstract]

CONTINGENT LIABILITIES, COMMITMENTS AND CHARGES

NOTE 16: CONTINGENT LIABILITIES, COMMITMENTS AND CHARGES

As for contingent liability in respect of payment of royalties to the IIA, see Note 12c.

The Company entered into a few distribution agreements with third parties regarding different territories around the world. According to these distribution agreements, the third parties are granted the exclusive right to market, distribute, lease and/or sale, use and promote sales of the systems in the different territories up to a 15 year period. The Company will supply the systems to the distributors and they will install, train and maintain the systems in the territory they operate. The different distributors are committed to minimum quantities as stated in the agreements.

In September 2013, the Company entered into a distribution agreement in Japan with Century Medical Inc., a member of the Itochu concern, which specializes in the import and distribution of medical systems and equipment in Japan. According to the agreement, the distributor was granted the exclusive right to market the Company's system for the treatment of major depression in patients in Japan for a ten year period which begins after the required regulatory approvals for marketing the system in Japan and after either obtaining reimbursement or deployment of a commercial product to a clinical site. If the distributor meets the minimum quantities which it has committed during the contractual term, the agreement will be extended for an additional five years period. The distributor is granted a right of first offer to distribute the Company's system in Japan without further codification.

In consideration for the above, the distributor is obligated to pay the Company distribution fees of 190 million Yen (approximately $1.8 million), whereby 100 million Yen (approximately $1 million as of December 31, 2019) paid in September 2013 and 90 million Yen (approximately $0.8 million as of December 31, 2019) paid in 2019.

In each year of the agreement in which the distributor meets the respective annual predetermined revenue target, 10% of the distribution fees are returned to the distributor. The distribution fee which the Company expects to be entitled to is presented in deferred revenues and is recognized as revenue during the estimated exclusivity term. The distributor will pay the Company for any treatment made with the Company's system (pay-per-use), but in no case less than the pre-determined annual amount. The agreement prescribes conditions in which the Company or the distributor can cancel the agreement, including the authorities' demand to require a clinical trial and non-compliance with the requirement to purchase minimum predetermined quantities.

The agreement sets a minimum payment threshold to the Company that is examined every few years throughout the contractual term. If the distributor does not qualify for the minimum payment threshold at the end of each period, the Company will be entitled to terminate the distribution agreement, unless the parties reach another agreement between them. The agreement further determines that the distributor will act on its account to receive the regulatory approvals that are required to market the Company's system for the treatment of depression in patients in Japan and to receive reimbursement coverage at the price range established in the agreement.

On January 22, 2018, the distributor in Japan applied to the Pharmaceutical and Medical Devices Agency ("PMDA"), which is responsible for all import and export licenses of pharmaceuticals and medical equipment to Japan, for approval of marketing and selling the Company's systems in Japan. On January 2019, approval of the PMDA was received.

The Company is currently working through its distributor in Japan with the relevant bodies in Japan to update the local society guidelines to include Deep TMS in order to obtain reimbursement coverage under the Japanese National Health Insurance Plan.

On August 25, 2013, the Company received the approval of the MAGNET committee of the IIA for the development plan of the BSMT tool (brain stimulate and monitor tool). The plan was approved for three years and extended up to five years, in the framework of which the Company was approved work plans with participation rate of up to 66% of a non-royalty bearing grant.

In September 2017 and October 2018, the MAGNET committee approved an annual work plan for the fifth year with the budget of NIS 2,300, of out of which 55% (NIS 1,300) was provided to the Company as non-royalty bearing grants to date. The execution of this plan was completed by December 31, 2018.

In March 2014, the Company entered into an exclusive marketing and distribution agreement of the Company's system with a third party in Israel for a maximum period of 15 years, subject to meeting minimum sales targets as set in the agreement. In April 2014, the distributor paid the Company a one-time exclusivity fee of NIS 1 million. Effective July 2019, the Company assumed direct operations for customers in Israel, after terminating its distribution agreement with the third-party distributor, pursuant to which a portion of the exclusivity fee (up to NIS 600) was determined to be refundable depending on future sales.

License agreements:

In July 2003, Inc signed a license agreement with the agencies of the U.S. Public Health Service within the U.S. Department of Health and Human Services ("PHS"), according to which the Company was granted an exclusive license to develop, manufacture, make use of, market, sell and import products and processes to be developed in the framework of the license agreement with respect to TMS and a right to enter into sublicense agreements, subject to approval of the PHS. In return, Inc is committed to pay PHS royalties at fixed annual amount of $2 from January 1, 2004 and royalties of 2% of net sales beyond this amount as defined in the agreement.

In addition, if Inc enters into a sub-license agreement, it is committed to pay royalties of 8% of the net consideration received for the grant of the sub-license. The current provision for royalties as of December 31, 2019 is $248.

The agreement is valid until the expiration of the last to expire of the licensed patent rights under the agreement. PHS is entitled to cancel the agreement if Inc does not comply with the conditions detailed in the agreement.

In June 2005 and March 2010, Inc signed a research and licensing agreement and addendum with Yeda Research and Development Company Ltd. ("Yeda"), according to which Inc was granted an exclusive license to intellectual property that can be used for research, development, marketing and manufacturing of products in the field of TMS treatment and may have the right to grant sublicenses subject to conditions specified in the agreement in consideration of royalty payment as follows:

1% of net sales systems based upon certain patents (which include technology licensed from PHS);

3% for the first $10,000 of net sales, and 2% for net sales over $10,000, for all other Deep TMS products solely based on certain patents licensed exclusively from Yeda provided however in the event that the products are sold to a sublicensee and are thereafter sold by such sublicensee, the royalties paid to Yeda will be based on the higher of the net sales by the licensee or the net sales of the sale by the sublicensee.

4%-8% of the net cash proceeds that the Company receives in respect of granting sublicenses or options for sublicenses dependent on the patents licensed.

The balance of provision for royalties as of December 31, 2019 is $ 124.

Royalties are payable at the later of 15 years after the first commercial sale or the patent life (20 years through October 2021). The agreement expires at the later of: the expiration of the last patent, 15 years after Inc starts to sell products integrating the patent and after a period of 20 years during which no sales are made.

The license agreement with Yeda may be subject to modifications in the event that the license agreement with PHS is modified (see 1, above) and may be cancelled based on various conditions, including the cancellation of the PHS agreement.

On February 22, 2018, Inc and Yeda signed an additional addendum to the agreement ("the fifth addendum"), according to which Inc received the right to examine an additional invention based upon the patent issued in connection with research in the field of rotational electrical fields owned by Yeda. Under the fifth addendum, the Company has the right to include the aforementioned invention and the intellectual property accompanying it under the Yeda license agreement. While initially valid up to the earlier of December 31, 2018 or 30 days after completion of all the milestones agreed between the parties, in order to provide more time for the defined milestones, the parties extended this date until December 31, 2019. In respect of the performance of the milestones under the fifth addendum, in December 2017, the Company received the approval of the MAGNET committee of the IIA ("Magneton") for a development plan to be performed jointly with Yeda. The Company's approved budget for the development plan is NIS 1.1 million, of which 66% (approximately NIS 0.7 million) which will be provided to the Company as a non-royalty bearing grant over the term of the plan.

If the Company exercises the right granted to it under the fifth addendum, royalties on net sales of products which are based on the use of the invention and know-how subject to the fifth addendum will be paid to Yeda at increased rates of 1.6%-2% in addition to the royalties described above and, in certain cases, at a flat rate of 2%. In respect of products under the fifth addendum that are not based on patents or research results for which the license was granted according to the original agreement (excluding the fifth addendum), royalties on net sales will be at the fixed rate of 5%.

Equity

12 Months Ended

Dec. 31, 2019

Equity [Abstract]

EQUITY

NOTE 17: EQUITY

Composition of share capital:

December 31, 2019

December 31, 2018

Authorized

Issued and
outstanding

Authorized

Issued and
outstanding

Number of shares

Ordinary shares of NIS 0.04 par value each

25,000,000

22,236,368

25,000,000

16,640,446

Movement in share capital:

Issued and outstanding capital:

	Number of shares		NIS par value
Balance at January 1, 2019		16,640,446		170,897
Issuance of shares (e)		5,595,922		62,270

Balance at December 31, 2019		22,236,368		233,167

Balance at December 31, 2018		16,640,446		170,897

Rights attached to shares:

Ordinary shares confer their holders rights to receive dividends in cash and in Company's shares, right to nominate the Company's directors and rights to participate in distribution of dividends upon liquidation in proportion to their holdings. Also, Ordinary shareholders have one vote at the shareholders' meeting such that each share confers one vote to its holder.

In December, 2017, the Company entered into a private placement agreement with a group of investors according to which the Company issued 1,924,662 Ordinary in consideration for NIS 29,928 ($8,578). Issuance expenses amounted to $133.

It should be noted that if the Company wishes to raise capital during the twelve months after the closing date, by way of a public offering or private placement of shares and/or securities convertible into shares ("the additional offering") and if the effective price per share in the additional offering is less than the share price according to this private placement then, the investors will be entitled to receive additional Ordinary shares in respect of the shares issues as part of this private placement which are still held by such investor in consideration for NIS 0.3 per Ordinary share such that the price per share in respect of the total shares issued in this private placement equal to the effective price in the additional offering. For the purpose of calculating the adjustment, the effective price according to this private placement will be adjusted for distribution (as defined in the Companies Law), rights issuance, split or consolidation of capital and issuance of bonus shares. All changes are taken into account in the computation of the effective price in the additional offering.

In April 2019, the Company closed its initial public offering in Nasdaq of 2,500,000 American Depositary Shares ("ADSs"), each representing two ordinary shares of Brainsway, at a public offering price of $11.00 per ADS. The gross proceeds to the Company from the offering, before deducting the underwriting discounts and commissions and estimated offering expenses, are approximately $27.5 million.

Capital management in the Company:

The Company's capital management objectives are to preserve the Group's ability to ensure business continuity thereby creating a return for the shareholders, investors and other interested parties.

The Company is not under any minimal equity requirements nor is it required to attain a certain level of capital return.

Share-Based Payment

12 Months Ended

Dec. 31, 2019

Share-Based Payment [Abstract]

SHARE-BASED PAYMENT

NOTE 18: SHARE-BASED PAYMENT

The expense recognized in the financial statements for services received is shown in the following table:

	Year ended December 31,
	2019		2018		2017
Equity-settled share-based payment plans to employees, directors and consultants	$	1,263	$	710	$	1,028

The share-based payment transactions that the Company granted to its employees, directors and consultants are shown in the following table:

Issuance Date	Grantee	Options outstanding as of December 31, 2019		Exercise price NIS		Exercise price $*)		Exercisable as of December 31, 2019		Exercisable Through	Total Fair Value $
December 8, 2015	Employees and Consultant		292,250		25.99		6.70		292,250	December 8, 2025		1,053
December 8, 2015	Employees and Consultant		270,000		31.19		8.04		270,000	December 8, 2025		1,247
April 1, 2017	Chief Executive Officer and Director		566,262		19.97		5.47		566,262	April 1, 2025		1,100
December 3, 2017	Director		27,500		21.37		6.12		9,167	December 3, 2027		54
November 12, 2018	Directors		110,000		23.39		6.36		—	November 12, 2026		298
November 12, 2018	Employees and officers		672,600		23.39 - 24.22		6.36 - 6.59		—	November 12, 2026		2,299
October 1, 2019	Chief Financial and Operating Officer		50,000		19.08		5.48		—	October 1, 2027		100

As of grant date.

The fair value of the Company's options granted for the years ended December 31, 2019, 2018 and 2017 was estimated using the Binomial model with the following assumptions:

	Year ended December 31,
	2019		2018		2017
Dividend yield (%)		0		0		0
Expected volatility (%)		40.06 - 48.09		40.51 - 48.25		40.58 - 56.77
Risk-free interest rate (%)		1.61 – 1.73		0.28 - 2.22		0.11 - 2.00
Expected exercise factor		2.8		2.8		2.8
Post-vesting forfeiture rate (%)		5		5		5 - 10

Movement during the year:

	Year ended December 31,
	2019					2018
	Number of options			Weighted average exercise price(*)		Number of options			Weighted average exercise price(*)
				$					$
Outstanding at January 1,		2,425,192		$	6.6		1,721,059		$	7.9
Granted		50,000			5.5		962,300			6.3
Expired		(59,765	)		7.5		(199,499	)		10.8
Forfeited		(201,615	)		7.0		(58,668	)		7.9

Outstanding at December 31,		2,213,812		$	7.1		2,425,192		$	6.6

Exercisable at December 31,		1,362,879		$	7.38		912,893		$	7.17

(*)

The exercise price of all options denominated in NIS and was translated to USD in the table above using the exchange rate as of December 31, 2019 and 2018, respectively.

The weighted average remaining contractual life for the options outstanding as of December 31, 2019 and 2018 was approximately six years.

The range of exercise prices for options outstanding as of December 31, 2019 and 2018 was NIS 19.08-59.13.

Additional Information to the Statements of Comprehensive Loss

12 Months Ended

Dec. 31, 2019

Additional Information to the Statements of Comprehensive Loss [Abstract]

ADDITIONAL INFORMATION TO THE STATEMENTS OF COMPREHENSIVE LOSS

NOTE 19: ADDITIONAL INFORMATION TO THE STATEMENTS OF COMPREHENSIVE LOSS

Additional information on revenues:

Revenues reported in the financial statements for each group of similar products and services:

	Year ended December 31,
	2019		2018		2017
Revenues from lease	$	13,218	$	9,569	$	6,654
Revenues from sale		9,883		6,828		4,491

	$	23,101	$	16,397	$	11,145

Geographic information:

Revenues reported in the financial statements derived from the Company's country of domicile (Israel) and foreign countries based on the location of the customers, are as follows:

	Year ended December 31,
	2019		%		2018		%		2017		%
U.S.	$	20,636		89	$	14,478		88	$	9,957		89
Europe		1,353		6		1,102		7		871		8
Israel		267		1		371		2		180		2
Other		845		4		446		3		137		1

	$	23,101		100	$	16,397		100	$	11,145		100

The total amounts of future minimum lease payments to be received under non-cancellable operating leases as of December 31, 2019 and 2018 are as follows:

	Year ended December 31,
	2019		2018
Not later than one year	$	8,527	$	7,884
Later than one year and not later than five years		12,723		13,402
Later than five years		571		148

Total future minimum lease payments under non cancellable operating leases	$	21,821	$	21,434

Cost of revenues:

	Year ended December 31,
	2019		2018		2017
Cost of revenues—lease	$	2,656	$	1,923	$	1,483
Cost of revenues—sales		2,473		1,666		1,112

	$	5,129	$	3,589	$	2,595

Research and development expenses, net:

	Year ended December 31,
	2019			2018			2017
Salaries and related benefits	$	3,338		$	3,365		$	2,954
Subcontractors		2,620			2,241			1,584
Laboratory materials		687			491			453
Patents		334			198			134
Share-based payment		399			31			180
Travel		112			65			35
Depreciation		39			31			35
Other		604			658			362
Less—Government grants		(257	)		(924	)		(394	)

	$	7,876		$	6,156		$	5,343

Selling and marketing expenses:

	Year ended December 31,
	2019		2018		2017
Salaries and related benefits	$	6,419	$	4,252	$	3,597
Agent commissions		221		215		138
Marketing		5,239		2,891		1,690
Travel		1,176		865		777
Share-based payment		214		122		129

	$	13,269	$	8,345	$	6,331

General and administrative expenses:

	Year ended December 31,
	2019		2018		2017
Salaries and related benefits	$	1,774	$	1,235	$	1,179
Professional fees and office expenses		1,770		1,176		1,002
Depreciation		81		30		20
Travel		222		127		64
Allowance for doubtful accounts		835		296		503
Share-based payment		621		557		719

	$	5,303	$	3,421	$	3,487

Finance income and expense:

	Year ended December 31,
	2019		2018		2017
Finance income:
Interest-income revaluation of bank deposits	$	175	$	44	$	22
Revaluation of warrants		62		—		38
Exchange rate differences		—		—		73

	$	237	$	44	$	133

Finance expense:
Liability in respect of research and development grants	$	969	$	519	$	273
Interest expense and amortization of deferred costs- loan from bank		283		354		87
Bank commissions		108		41		47
Revaluation of warrants		—		28		—
Exchange rate differences		192		258		—
Interest expense of lease liability		115		—		—

	$	1,667	$	1,200	$	407

Net Loss Per Share

12 Months Ended

Dec. 31, 2019

Earnings per share [abstract]

NET LOSS PER SHARE

NOTE 20: NET LOSS PER SHARE

Number of shares and loss used in the computation of net loss per share:

	Year ended December 31,
	2019				2018				2017
	Weighted number of shares*)		Loss attributable to equity holders of the Company		Weighted number of shares*)		Loss attributable to equity holders of the Company		Weighted number of shares*)		Loss attributable to equity holders of the Company
Used in the computation of basic and diluted net loss		20,506,202	$	10,328		16,640,446	$	6,479		14,768,514	$	7,054

Computation of diluted loss per share did not include potential ordinary shares that would result from conversion of outstanding options and warrants, since their conversion has anti-dilutive effect.

Balances and Transactions With Related Parties

12 Months Ended

Dec. 31, 2019

Balances and Transactions With Related Parties [Abstract]

BALANCES AND TRANSACTIONS WITH RELATED PARTIES

NOTE 21: BALANCES AND TRANSACTIONS WITH RELATED PARTIES

Balances with interested and related parties:

Composition:

As of December 31, 2019

		Key management personnel				Other interested and related parties
Other accounts payable		$	102			$	26

As of December 31, 2018

		Key management personnel				Other interested and related parties
Other accounts payable		$	95			$	6

Benefits to interested and related parties:

	Year ended December 31,
	2019		2018		2017
Salary to those employed by the Company or on its behalf	$	945	$	654	$	593

Directors' fees to those not employed by the Company or on its behalf	$	90	$	100	$	98

Number of individuals to whom the salary and benefits relate:
Related and interested parties employed by the Company or on its behalf		3		4		4
Directors not employed by the Company		8		6		7

		11		10		11

Key management personnel:

	Year ended December 31,
	2019		2018		2017
Short-term benefits	$	3	$	16	$	11

Share-based payment to those employed by the Company or on its behalf	$	190	$	394	$	501

Share-based payment to those not employed by the Company or on its behalf	$	147	$	41	$	2

Transactions with interested and related parties:

Year ended December 31, 2019

	Key management personnel*)		Other interested and related parties
Research and development expenses	$	113	$	81
General and administrative expenses		943		238

	$	1,056	$	319

Year ended December 31, 2018

	Key management personnel*)		Other interested and related parties
Research and development expenses	$	207	$	81
General and administrative expenses		776		140

	$	983	$	221

Year ended December 31, 2017

	Key management personnel*)		Other interested and related parties
Research and development expenses	$	200	$	81
General and administrative expenses		821		99

	$	1,021		$    180

*) Some of the key management personnel are interested parties by virtue of holdings.

Mr. Yaakov Michlin commenced his role as the Company's Chief Executive Officer (CEO) on April 1, 2017. On February 12, 2017, (the general shareholders meeting), his employment terms, including bonuses incremental to his monthly compensation were approved as follows: (1) bonuses of NIS 1 million based on target achievements as outlined in his agreement. No expense recorded during the years ended December 31, 2017 and 2018 with respect to these bonuses; (2) an annual bonus based on the Company's remuneration policy according to the decision of the Company's Board of directors.

In addition, upon commencement of his role, Mr. Michlin was granted 566,262 options to purchase Ordinary shares of the Company at an exercise price of NIS 19.97, representing 3.6% and 3.1% of the Company's issued and outstanding capital on a fully diluted basis as of January 5, 2017, the date on which the board of directors approved the employment terms, and December 31, 2017, respectively. The price was determined according to the average closing market price of the Ordinary share 30 days before the date of grant. The options vest over four years from the date of grant as outlined in the agreement. In September 2019 Yaacov Michlin resigned as CEO, and after conducting an executive search, the Company's Board of Directors appointed a U.S.-based CEO effective January 2020, see Note 22.

For information regarding the fair value of the options granted to Mr. Michlin, see Note 18b.

On December 3, 2017, at the general shareholders meeting, the Company granted a director of the Company, Ms. Karen Sarid, 27,500 options to purchase Ordinary shares at an exercise price of NIS 21.37 per share.

For information regarding the fair value of the options granted to Ms. Sarid, see Note 18b.

On November 12, 2018, at the general shareholders meeting, the Company granted directors of the Company, 110,000 options to purchase Ordinary shares at an exercise price of NIS 23.39 per share.

For information regarding the fair value of the options granted, see Note 18b.

Events After the Reporting Period

12 Months Ended

Dec. 31, 2019

Events After the Reporting Period [Abstract]

EVENTS AFTER THE REPORTING PERIOD

NOTE 22: EVENTS AFTER THE REPORTING PERIOD

In January 2020 the general shareholders meeting approved the compensation for Christopher R. von Jako, Ph.D., following his appointment by the Company's Board of Directors effective January 2020 as the Company's President and CEO. The shareholders as well as the compensation committee and the Board of Directors approved the compensation package which includes annual gross base salary, bonus and equity grant of 240,000 performance-based Restricted Stock Units ("RSU's"). The RSU's will be granted during a four years period, subject to the defined terms, conditions, and vesting schedules. In addition, the shareholders approved the grant of 55,000 options to directors.

Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2019

Significant Accounting Policies [abstract]

Basis of presentation of the financial statements

a.	Basis of presentation of the financial statements:

These financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board.

The Company’s financial statements have been prepared on a cost basis, except for certain financial instruments which are presented at fair value through profit or loss.

The Company has elected to present the profit or loss items using the function of expense method.

Consolidated financial statements

b.	Consolidated financial statements:

The consolidated financial statements comprise the financial statements of companies that are controlled by the Company (“subsidiaries”). Control is achieved when the Company has power over the subsidiaries, is exposed or has rights to variable returns from its involvement with the subsidiaries and has the ability to affect those returns through its power over the subsidiaries. In assessing control, the effect of potential voting rights is considered only if they are substantive. The consolidation of the financial statements commences on the date on which control is obtained and ends when such control ceases.

Functional currency, presentation currency and foreign currency

c.	Functional currency, presentation currency and foreign currency:

Functional currency and presentation currency:

The functional currency is the currency that best reflects the economic environment in which the Company operates and conducts its transactions, is separately determined for each Group entity and is used to measure its financial position and operating results. The Group determines the functional currency of each Group entity. The Company’s functional and presentation currency is the US Dollar for all reported periods.

Transactions, assets and liabilities in foreign currency:

Cash equivalents

d.	Cash equivalents:

Short-term deposits

e.	Short-term deposits:

Short-term deposits are deposits with an original maturity of more than three months from the date of investment and which do not meet the definition of cash equivalents.

Allowance for doubtful accounts

Allowance for doubtful accounts (accounting policy applied until December 31, 2017):

See Note 2m with respect to accounting policy applied commencing January 1, 2018.

Revenue recognition

Revenue recognition:

IFRS 15 introduces a five-step model that applies to revenue earned from contracts with customers.

The accounting policy applied from January 1, 2018 regarding revenue recognition according to IFRS 15 is as follows:

Revenues from sale of systems:

Revenue from sale of systems are recognized at the point in time when control of the system is transferred to the customer, generally upon delivery of the system to the customer.

Revenue from rendering of services:

Contract liabilities:

A contract liability, presented as deferred revenues, is the obligation to transfer goods or services to a customer for which the Company has received consideration (or an amount of consideration is due) from the customer. The Company elected to apply the practical expedient in IFRS 15 and does not provide disclosure of the remaining unsatisfied performance obligations with respect to contracts that have a term of up to one year. As of December 31, 2019 the Company has no unsatisfied performance obligation with a contract duration of more than one year.

Allocating the transaction price:

For contracts that consist of more than one performance obligation, at contract inception the Company allocates the contract transaction price to each performance obligation identified in the contract on a relative stand-alone selling price basis. The stand-alone selling price is the price at which the Company would sell the promised goods or services separately to a customer.

Revenues from lease of systems:

Government grants

h.	Government grants:

Government grants are recognized when there is reasonable assurance that the grants will be received and the Company will comply with all attached conditions.

Government grants received from the Israel Innovation Authority (“IIA”) and repayable to the IIA through royalty-bearing sales are recognized upon receipt as a liability if future economic benefits are expected to be derived from the research project, resulting in royalty-bearing sales due to the IIA.

Grants received from the IIA prior to January 1, 2009, which are recognized as a liability, are accounted for as forgivable loans in accordance with IAS 20, based on the original terms of the loan.

Leases

Leases:

The accounting policy for leases applied effective from January 1, 2019, is as follows:

The Company accounts for a contract as a lease when the contract terms convey the right to control the use of an identified asset for a period of time in exchange for consideration.

Leases which entitle employees to a company car as part of their employment terms are accounted for as employee benefits in accordance with the provisions of IAS 19 and not as subleases.

Following are the amortization periods of the right-of-use assets by class of underlying asset:

		Years
Lease facilities		2 to 3
Motor vehicles		3

The Company tests for impairment of the right-of-use asset whenever there are indications of impairment pursuant to the provisions of IAS 36.

The accounting policy for leases applied until December 31, 2018, is as follows:

The criteria for classifying leases as finance or operating leases depend on the substance of the agreements and is determined at the inception of the lease in accordance with IAS 17.

Taxes on income

j.	Taxes on income:

Current or deferred taxes are recognized in profit or loss, except to the extent that they relate to items which are recognized in other comprehensive income or equity.

Current taxes:

Deferred taxes:

Deferred taxes are computed in respect of temporary differences between the carrying amounts in the financial statements and the amounts attributed for tax purposes.

Leased systems, system components and other property and equipment, net

Leased systems, system components and other property and equipment, net:

System components are stated at the lower of cost and net realizable value. Cost is determined on a weighted average basis. Net realizable value is based on estimated selling prices less estimated costs to be incurred to completion and disposal. The impairment of leased systems and system components recognized in cost of revenues was $1,191, $340 and $225 for the years ended December 31, 2019, 2018 and 2017, respectively.

Depreciation is calculated on a straight-line basis over the useful life of the assets at annual rates as follows:

		%
Leased systems		15
Laboratory equipment		15
Computers		33
Office furniture and equipment		6 - 15
Leasehold improvements		(*)

(*)

Leasehold improvements are depreciated on a straight-line basis over the shorter of the lease term (including the extension option held by the Group and intended to be exercised) and the expected life of the improvement.

The useful life and depreciation method of an asset are reviewed at least each year-end and any changes are accounted for prospectively as a change in accounting estimate.

Impairment of non-financial assets

Impairment of non-financial assets:

The Company evaluates the need to record an impairment of non-financial assets whenever events or changes in circumstances indicate that the carrying amount is not recoverable.

Financial instruments

Financial instruments:

Impairment of financial assets:

Derecognition of financial assets:

A financial asset is derecognized only when the following criteria are met:

The contractual rights to the cash flows from the financial asset expire; or

Financial liabilities:

After initial recognition, the Company measures all financial liabilities at amortized cost, except for financial liabilities at fair value through profit or loss such as derivatives.

Derecognition of financial liabilities:

Issue of a unit of securities:

Fair value measurement

n.	Fair value measurement:

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurement is based on the assumption that the transaction will take place in the asset’s or the liability’s principal market, or in the absence of a principal market, in the most advantageous market.

Fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

Level 1	—	quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2	—	inputs other than quoted prices included within Level 1 that are observable either directly or indirectly.

Level 3	—	inputs that are not based on observable market data (valuation techniques which use inputs that are not based on observable market data).

Provisions

o.	Provisions:

Employee benefit liabilities

Employee benefit liabilities:

Short-term employee benefits:

Post-employment benefits:

Share-based payment transactions

q.	Share-based payment transactions:

The Company’s employees and other service providers are entitled to remuneration in the form of equity-settled share-based payment.

The cost of equity-settled transactions is recognized in profit or loss together with a corresponding increase in equity during the period which the performance and/or service conditions are to be satisfied ending on the date on which the relevant employees become entitled to the award (“the vesting period”). The cumulative expense recognized for equity-settled transactions at the end of each reporting date includes the Group’s best estimate of the number of equity instruments that will ultimately vest.

The cost of equity-settled transactions with employees is measured at the fair value of the equity instruments granted at grant date. The fair value of option granted is determined using the Binomial Lattice option-pricing model (“Binomial model”). The Binomial model takes into account variables such as volatility, dividend yield rate, and risk-free interest rate and also allows for the use of dynamic assumptions and considers the contractual term of the option, the probability that the option will be exercised prior to the end of its contractual life, and the probability of termination or retirement of the option holder in computing the value of the option.

No expense is recognized for awards that do not ultimately vest.

Net loss per share

r.	Net loss per share:

Net loss per share is calculated by dividing the net loss attributable to equity holders of the Company by the weighted number of Ordinary shares outstanding during the period.

Basic net loss per share includes only shares that are outstanding during the period.

Changes in accounting policies - initial adoption of new financial reporting and accounting standards and amendments to existing financial reporting and accounting standards

Changes in accounting policies – initial adoption of new financial reporting and accounting standards and amendments to existing financial reporting and accounting standards:

1. Initial adoption of IFRS 16, "Leases"

2. Initial adoption of IFRIC 23, "Uncertainty over Income Tax Treatments"

Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2019

Significant Accounting Policies [abstract]

Schedule of amortization of right-of-use assets

		Years
Lease facilities		2 to 3
Motor vehicles		3

Schedule of useful life of the assets at annual rates

Depreciation is calculated on a straight-line basis over the useful life of the assets at annual rates as follows:

		%
Leased systems		15
Laboratory equipment		15
Computers		33
Office furniture and equipment		6 - 15
Leasehold improvements		(*)

(*)

Cash and Cash Equivalents (Tables)

12 Months Ended

Dec. 31, 2019

Cash and cash equivalents [abstract]

Schedule of cash and cash equivalents

	December 31,
	2019		2018
Cash for immediate withdrawal	$	11,640	$	5,965
Cash equivalents—short-term deposits (1)		10,034		3,003
	$	21,674	$	8,968

(1)

The deposits earn annual interest at the respective term of the deposits of approximately 1.5%.

Short-Term Deposits (Tables)

12 Months Ended

Dec. 31, 2019

Short-term Deposits [abstract]

Schedule of short-term deposits at banks

	December 31,
	2019		2018
Bank deposits (1)	$	221	$	101

(1)

Short-term deposits at banks are for periods of up to one year. The deposits earn annual interest at the respective term of the deposits of approximately 1.5%.

Trade Receivables, Net (Tables)

12 Months Ended

Dec. 31, 2019

Trade and other receivables [abstract]

Schedule of trade receivables, net

	December 31,
	2019			2018
Open accounts (1)	$	6,279		$	3,165
Credit cards		158			74
Less—allowance for doubtful accounts		(930	)		(335	)
Trade receivables, net	$	5,507		$	2,904

(1)

Trade receivables generally have 90 day credit terms. Certain customers payments are made through monthly credit card transactions.

Schedule of allowance for doubtful account

	U.S. dollars in thousands
Balance as of January 1, 2018	$	288
Provision for the year		335
Derecognition of bad debts		(249	)
Reversal in respect of collected doubtful accounts		(39	)
Balance as of December 31, 2018		335
Provision for the year		835
Derecognition of bad debts		(240	)
Reversal in respect of collected doubtful accounts		—
Balance as of December 31, 2019	$	930

Schedule of credit losses exposure

December 31, 2019:
	U.S. dollars in thousands
	Not past due		< 30 days		30 - 60 days		61 - 90 days		91 - 120 days		>120 days		Total
	U.S. dollars in thousands
Gross carrying amount	$	2,619	$	1,133	$	544	$	461	$	247	$	1,433	$	6,437
Allowance for doubtful accounts	$	7	$	11	$	8	$	32	$	69	$	803	$	930
Trade receivables, net		2,612		1,122		536		429		178		630	$	5,507

December 31, 2018:
	U.S. dollars in thousands
	Not past due		< 30 days		30 - 60 days		61 - 90 days		91 - 120 days		>120 days		Total
	U.S. dollars in thousands
Gross carrying amount	$	1,210	$	953	$	207	$	305	$	266	$	298	$	3,239
Allowance for doubtful accounts	$	148	$	39	$	12	$	23	$	23	$	90	$	335
Trade receivables, net		1,062		914		195		282		243		208	$	2,904

Other Accounts Receivable (Tables)

12 Months Ended

Dec. 31, 2019

Other Accounts Receivable [Abstract]

Schedule of other accounts receivable

	December 31,
	2019		2018
Government authorities	$	378	$	738
Accrued income-IIA		71		332
Consumables		306		91
Prepaid expenses and other		672		344
	$	1,427	$	1,505

Property and Equipment, Net (Tables)

12 Months Ended

Dec. 31, 2019

Property, plant and equipment [abstract]

Schedule of property and equipment, net

December 31, 2019:

	Leased systems			System Components			Laboratory equipment and Computers		Right of use assets		Office furniture and equipment		Leasehold improvements			Total
Cost:
Balance at January 1, 2019	$	6,369		$	2,717		$	794	$	1,414	$	82	$	52		$	11,428
Additions		—			5,521			37		—		8		—			5,566
Transfer to Leased systems		2,150			(2,150	)		—		—		—		—			—
Reductions		(368	)(**)		(2,971	)(***)		—		—		—		—			(3,339	)
Balance at December 31, 2019		8,151			3,117			831		1,414		90		52			13,655

Accumulated depreciation:
Balance at January 1, 2019		1,679			—			613		—		44		52			2,388
Additions		1,054			—			81		460		6		—			1,602
Reductions		(73	)		—			—		—		—		—			(73	)

Balance at December 31, 2019		2,660			—			694		460		50		52			3,916

Depreciated cost at December 31, 2019	$	5,491		$	3,117		$	137	$	954	$	40	$		(*)	$	9,739

(*)

Represents an amount lower than $ 1

(**)

Derived mainly from systems leased to customers and sold

(***)

Includes impairment charge of $1,191 for the year ended December 31, 2019.

December 31, 2018:

	Leased systems			System Components			Laboratory equipment and Computers		Office furniture and equipment		Leasehold improvements			Total
Cost:
Balance at January 1, 2018	$	4,627		$	3,553		$	633	$	75	$	52		$	8,940
Additions		—			2,645			161		7		—			2,813
Transfer to Leased systems		2,458			(2,458	)		—		—		—			—
Reductions		(716	)(**)		(1,023	)(***)		—		—		—			(1,739	)
Balance at December 31, 2018		6,369			2,717			794		82		52			10,014

Accumulated depreciation:
Balance at January 1, 2018		1,187			—			554		38		52			1,831
Additions		817			—			59		6		—			882
Reductions		(325	)		—			—		—		—			(325	)

Balance at December 31, 2018		1,679			—			613		44		52			2,388

Depreciated cost at December 31, 2018	$	4,690		$	2,717		$	181	$	38	$	—	(*)	$	7,626

(*)

Represents an amount lower than $ 1.

(**)

Derived mainly from systems leased to customers and sold

(***)

Includes impairment charge of $340 for the year ended December 31, 2018.

Fair Value Measurement (Tables)

12 Months Ended

Dec. 31, 2019

Fair Value Measurement [abstract]

Schedule of fair value measurement hierarchy of the assets and liabilities

		Fair value hierarchy
	Valuation date	Level 1		Level 2		Level 3		Total
Liabilities measured at fair value:
Liability in respect of warrants	31.12.2019	$	—	$	78	$	—	$	78

Liability in respect of warrants	31.12.2018	$	—	$	140	$	—	$	140

Trade Payables (Tables)

12 Months Ended

Dec. 31, 2019

Trade and other payables [abstract]

Schedule of trade payable

	December 31,
	2019		2018
Open debt	$	1,320	$	2,243

Other Accounts Payable (Tables)

12 Months Ended

Dec. 31, 2019

Other Accounts Payable [abstract]

Schedule of other accounts payable

	December 31,
	2019		2018
Employee and payroll accruals	$	1,216	$	1,067
Accrued expenses		1,620		2,161
Tax payable		1		130
Liabilities to related parties (1)		128		101
Lease liabilities		414		—

	$	3,379	$	3,459

(1)

A current non-interest bearing account.

Non-Current Liabilities (Tables)

12 Months Ended

Dec. 31, 2019

Non-Current Liabilities [Abstract]

Schedule of non-current liabilities

	December 31,
	2019		2018
Loan from bank(c)	$	—	$	2,083
Warrants(c)		78		140
Liability in respect of research and development grants(d)		5,367		4,980
Deferred revenues and other liabilities		1,690		1,108
Lease liabilities(b)		663		—

	$	7,798	$	8,311

Schedule of lease liabilities

	U.S. dollars in thousands
Maturity analysis:
Less than one year		525
One to five years		1,106
Total lease commitments		1,631
Impact of discounting remaining lease payments		217
Total lease liabilities as of January 1, 2019		1,414

Lease liabilities as of December 31, 2019		1,077
Current		414
Non-current		663

Total	$	1,077

Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2019

Disclosure of detailed information about financial instruments [abstract]

Schedule of financial liabilities based on contractual undiscounted payments

December 31, 2019

	Less than one year		1 to 2 years		2 to 3 years		3 to 4 years		4 to 5 years		> 5 years		Total
Trade payables	$	1,320	$	—	$	—	$	—	$	—	$	—	$	1,320
Other accounts payable		2,965		—		—		—		—		—		2,965
Long-term liabilities		1		1		—		—		—		—		2
Liability in respect of research and development grants		810		1,050		1,335		1,635		1,980		6,792		13,602
Lease liability		572		449		271		—		—		—		1,292

	$	5,668	$	1,500	$	1,606	$	1,635	$	1,980	$	6,792	$	19,181

December 31, 2018

	Less than one year		1 to 2 years		2 to 3 years		3 to 4 years		4 to 5 years		> 5 years		Total
Trade payables	$	2,243	$	—	$	—	$	—	$	—	$	—	$	2,243
Other accounts payable		3,394		—		—		—		—		—		3,394
Loan from bank		988		1,637		773		—		—		—		3,398
Long-term liabilities		2		1		—		—		—		—		3
Liability in respect of research and development grants		631		855		1,185		1,545		1,890		7,378		13,484

	$	7,258	$	2,493	$	1,958	$	1,545	$	1,890	$	7,378	$	22,521

Schedule of financial liabilities measured at fair value

	Level 2
Opening balance at January 1, 2019	$	140
Amounts transferred to the statement of comprehensive loss as finance income		(62	)

Closing balance at December 31, 2019	$	78

Schedule of sensitivity tests relating to changes in foreign currency

	December 31,
	2019			2018
Sensitivity test to changes in the NIS exchange rate:
Gain (loss) from the change:
Increase of 5% in exchange rate		88			3
Decrease of 5% in exchange rate		(88	)		(3	)

Equity (Tables)

12 Months Ended

Dec. 31, 2019

Equity [Abstract]

Schedule of ordinary shares

December 31, 2019

December 31, 2018

Authorized

Issued and
outstanding

Authorized

Issued and
outstanding

Number of shares

Ordinary shares of NIS 0.04 par value each

25,000,000

22,236,368

25,000,000

16,640,446

Schedule of issued and outstanding share capital

	Number of shares		NIS par value
Balance at January 1, 2019		16,640,446		170,897
Issuance of shares (e)		5,595,922		62,270

Balance at December 31, 2019		22,236,368		233,167

Balance at December 31, 2018		16,640,446		170,897

Share-Based Payment (Tables)

12 Months Ended

Dec. 31, 2019

Share-Based Payment [Abstract]

Schedule of expense recognized in the financial statements for services

	Year ended December 31,
	2019		2018		2017
Equity-settled share-based payment plans to employees, directors and consultants	$	1,263	$	710	$	1,028

Schedule of share-based payment transactions granted to its employees, directors and consultants

Issuance Date	Grantee	Options outstanding as of December 31, 2019		Exercise price NIS		Exercise price $*)		Exercisable as of December 31, 2019		Exercisable Through	Total Fair Value $
December 8, 2015	Employees and Consultant		292,250		25.99		6.70		292,250	December 8, 2025		1,053
December 8, 2015	Employees and Consultant		270,000		31.19		8.04		270,000	December 8, 2025		1,247
April 1, 2017	Chief Executive Officer and Director		566,262		19.97		5.47		566,262	April 1, 2025		1,100
December 3, 2017	Director		27,500		21.37		6.12		9,167	December 3, 2027		54
November 12, 2018	Directors		110,000		23.39		6.36		—	November 12, 2026		298
November 12, 2018	Employees and officers		672,600		23.39 - 24.22		6.36 - 6.59		—	November 12, 2026		2,299
October 1, 2019	Chief Financial and Operating Officer		50,000		19.08		5.48		—	October 1, 2027		100

As of grant date.

Schedule of fair value of options granted

	Year ended December 31,
	2019		2018		2017
Dividend yield (%)		0		0		0
Expected volatility (%)		40.06 - 48.09		40.51 - 48.25		40.58 - 56.77
Risk-free interest rate (%)		1.61 – 1.73		0.28 - 2.22		0.11 - 2.00
Expected exercise factor		2.8		2.8		2.8
Post-vesting forfeiture rate (%)		5		5		5 - 10

Schedule of share-based payment movement during the year

	Year ended December 31,
	2019					2018
	Number of options			Weighted average exercise price(*)		Number of options			Weighted average exercise price(*)
				$					$
Outstanding at January 1,		2,425,192		$	6.6		1,721,059		$	7.9
Granted		50,000			5.5		962,300			6.3
Expired		(59,765	)		7.5		(199,499	)		10.8
Forfeited		(201,615	)		7.0		(58,668	)		7.9

Outstanding at December 31,		2,213,812		$	7.1		2,425,192		$	6.6

Exercisable at December 31,		1,362,879		$	7.38		912,893		$	7.17

(*)

The exercise price of all options denominated in NIS and was translated to USD in the table above using the exchange rate as of December 31, 2019 and 2018, respectively.

Additional Information to the Statements of Comprehensive Loss (Tables)

12 Months Ended

Dec. 31, 2019

Additional Information to the Statements of Comprehensive Loss [Abstract]

Schedule of additional information on revenues

	Year ended December 31,
	2019		2018		2017
Revenues from lease	$	13,218	$	9,569	$	6,654
Revenues from sale		9,883		6,828		4,491

	$	23,101	$	16,397	$	11,145

Schedule of geographic information

	Year ended December 31,
	2019		%		2018		%		2017		%
U.S.	$	20,636		89	$	14,478		88	$	9,957		89
Europe		1,353		6		1,102		7		871		8
Israel		267		1		371		2		180		2
Other		845		4		446		3		137		1

	$	23,101		100	$	16,397		100	$	11,145		100

Schedule of future minimum lease payments to be received under non-cancellable operating leases

	Year ended December 31,
	2019		2018
Not later than one year	$	8,527	$	7,884
Later than one year and not later than five years		12,723		13,402
Later than five years		571		148

Total future minimum lease payments under non cancellable operating leases	$	21,821	$	21,434

Schedule of cost of revenues

	Year ended December 31,
	2019		2018		2017
Cost of revenues—lease	$	2,656	$	1,923	$	1,483
Cost of revenues—sales		2,473		1,666		1,112

	$	5,129	$	3,589	$	2,595

Schedule of research and development expenses, net

	Year ended December 31,
	2019			2018			2017
Salaries and related benefits	$	3,338		$	3,365		$	2,954
Subcontractors		2,620			2,241			1,584
Laboratory materials		687			491			453
Patents		334			198			134
Share-based payment		399			31			180
Travel		112			65			35
Depreciation		39			31			35
Other		604			658			362
Less—Government grants		(257	)		(924	)		(394	)

	$	7,876		$	6,156		$	5,343

Schedule of selling and marketing expenses

	Year ended December 31,
	2019		2018		2017
Salaries and related benefits	$	6,419	$	4,252	$	3,597
Agent commissions		221		215		138
Marketing		5,239		2,891		1,690
Travel		1,176		865		777
Share-based payment		214		122		129

	$	13,269	$	8,345	$	6,331

Schedule of general and administrative expenses

	Year ended December 31,
	2019		2018		2017
Salaries and related benefits	$	1,774	$	1,235	$	1,179
Professional fees and office expenses		1,770		1,176		1,002
Depreciation		81		30		20
Travel		222		127		64
Allowance for doubtful accounts		835		296		503
Share-based payment		621		557		719

	$	5,303	$	3,421	$	3,487

Schedule of finance income and expense

	Year ended December 31,
	2019		2018		2017
Finance income:
Interest-income revaluation of bank deposits	$	175	$	44	$	22
Revaluation of warrants		62		—		38
Exchange rate differences		—		—		73

	$	237	$	44	$	133

Finance expense:
Liability in respect of research and development grants	$	969	$	519	$	273
Interest expense and amortization of deferred costs- loan from bank		283		354		87
Bank commissions		108		41		47
Revaluation of warrants		—		28		—
Exchange rate differences		192		258		—
Interest expense of lease liability		115		—		—

	$	1,667	$	1,200	$	407

Net Loss Per Share (Tables)

12 Months Ended

Dec. 31, 2019

Earnings per share [abstract]

Schedule of net loss per share

	Year ended December 31,
	2019				2018				2017
	Weighted number of shares*)		Loss attributable to equity holders of the Company		Weighted number of shares*)		Loss attributable to equity holders of the Company		Weighted number of shares*)		Loss attributable to equity holders of the Company
Used in the computation of basic and diluted net loss		20,506,202	$	10,328		16,640,446	$	6,479		14,768,514	$	7,054

Computation of diluted loss per share did not include potential ordinary shares that would result from conversion of outstanding options and warrants, since their conversion has anti-dilutive effect.

Balances and Transactions With Related Parties (Tables)

12 Months Ended

Dec. 31, 2019

Balances and Transactions With Related Parties [Abstract]

Schedule of balances with interested and related parties

As of December 31, 2019

		Key management personnel				Other interested and related parties
Other accounts payable		$	102			$	26

As of December 31, 2018

		Key management personnel				Other interested and related parties
Other accounts payable		$	95			$	6

Schedule of benefits to interested and related parties

	Year ended December 31,
	2019		2018		2017
Salary to those employed by the Company or on its behalf	$	945	$	654	$	593

Directors' fees to those not employed by the Company or on its behalf	$	90	$	100	$	98

Number of individuals to whom the salary and benefits relate:
Related and interested parties employed by the Company or on its behalf		3		4		4
Directors not employed by the Company		8		6		7

		11		10		11

Schedule of key management personnel

	Year ended December 31,
	2019		2018		2017
Short-term benefits	$	3	$	16	$	11

Share-based payment to those employed by the Company or on its behalf	$	190	$	394	$	501

Share-based payment to those not employed by the Company or on its behalf	$	147	$	41	$	2

Schedule of transactions with interested and related parties

Year ended December 31, 2019

	Key management personnel*)		Other interested and related parties
Research and development expenses	$	113	$	81
General and administrative expenses		943		238

	$	1,056	$	319

Year ended December 31, 2018

	Key management personnel*)		Other interested and related parties
Research and development expenses	$	207	$	81
General and administrative expenses		776		140

	$	983	$	221

Year ended December 31, 2017

	*Key management personnel)**		Other interested and related parties
Research and development expenses	$	200	$	81
General and administrative expenses		821		99

	$	1,021		$    180

*) Some of the key management personnel are interested parties by virtue of holdings.

General (Details) - USD ($) $ in Thousands	12 Months Ended
General (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Oct. 03, 2017	Aug. 17, 2017
General (Textual)
Negative cash flows from operating activities	$ 7,200
Operating loss	$ 8,300
Bank credit facility		$ 300	$ 6,000

Significant Accounting Policies (Details)	12 Months Ended
Significant Accounting Policies (Details)	Dec. 31, 2019
Lease facilities [Member] \| Bottom of range [member]
Statement Line Items [Line Items]
Amortization period right-of-use assets	2 years
Lease facilities [Member] \| Top of range [member]
Statement Line Items [Line Items]
Amortization period right-of-use assets	3 years
Motor vehicles [Member]
Statement Line Items [Line Items]
Amortization period right-of-use assets	3 years

Significant Accounting Policies (Details 1)

12 Months Ended

Dec. 31, 2019

Leased systems [Member]

Laboratory equipment [Member]

15.00%

15.00%

Computers [Member]

Leasehold improvements [Member]

33.00%

Office furniture and equipment [Member] | Maximum [Member]

0.00%

^[1]

Office furniture and equipment [Member] | Minimum [Member]

15.00%

Cash and cash equivalents [abstract]

6.00%

[1]	Leasehold improvements are depreciated on a straight-line basis over the shorter of the lease term (including the extension option held by the Group and intended to be exercised) and the expected life of the improvement.

Significant Accounting Policies (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Significant Accounting Policies (Textual)
Percentage of monthly deposit at a rate	8.33%
Net increase in total assets	$ 1,400
impairment of leased systems and system components recognized in cost of revenues	$ 1,191	$ 340	$ 225

Cash and Cash Equivalents (Details) - USD ($)
$ in Thousands

Dec. 31, 2019

Dec. 31, 2018

Cash for immediate withdrawal

$ 11,640

$ 5,965

Cash equivalents-short-term deposits

^[1]

10,034

3,003

Total

$ 21,674

$ 8,968

[1]	The deposits earn annual interest at the respective term of the deposits of approximately 1.5%.

Short-Term Deposits (Details) - USD ($)
$ in Thousands

Dec. 31, 2019

Dec. 31, 2018

Short-term deposits (Textual)

Bank deposits

^[1]

$ 221

$ 101

[1]	Short-term deposits at banks are for periods of up to one year. The deposits earn annual interest at the respective term of the deposits of approximately 1.5%.

Trade Receivables, Net (Details) - USD ($)
$ in Thousands

Dec. 31, 2019

Dec. 31, 2018

Trade and other receivables [abstract]

Open accounts

^[1]

$ 6,279

$ 3,165

Credit cards

158

Less-allowance for doubtful accounts

(930)

(335)

Trade receivables, net

$ 5,507

$ 2,904

[1]	Trade receivables generally have 90 day credit terms. Certain customers payments are made through monthly credit card transactions.

Trade Receivables, Net (Details 1) - USD ($) $ in Thousands	12 Months Ended
Trade Receivables, Net (Details 1) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Trade and other receivables [abstract]
Beginning balance	$ 335	$ 288
Provision for the year	835	335
Derecognition of bad debts	(240)	(249)
Reversal in respect of collected doubtful accounts		(39)
Ending balance	$ 930	$ 335

Trade Receivables, Net (Details 2) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Statement Line Items [Line Items]
Gross carrying amount	$ 6,639	$ 3,239
Allowance for doubtful accounts	930	335	$ 288
Trade receivables, net	5,507	2,904
Less Than 30 Days [Member]
Statement Line Items [Line Items]
Gross carrying amount	1,133	953
Allowance for doubtful accounts	11	39
Trade receivables, net	1,122	914
30 - 60 Days [Member]
Statement Line Items [Line Items]
Gross carrying amount	544	207
Allowance for doubtful accounts	8	12
Trade receivables, net	536	195
61 - 90 Days [Member]
Statement Line Items [Line Items]
Gross carrying amount	461	305
Allowance for doubtful accounts	32	23
Trade receivables, net	429	282
91 - 120 Days [Member]
Statement Line Items [Line Items]
Gross carrying amount	247	266
Allowance for doubtful accounts	69	23
Trade receivables, net	178	243
Greater Than 120 Days [Member]
Statement Line Items [Line Items]
Gross carrying amount	1,433	298
Allowance for doubtful accounts	803	90
Trade receivables, net	630	208
Not Past Due [Member]
Statement Line Items [Line Items]
Gross carrying amount	2,619	1,210
Allowance for doubtful accounts	7	148
Trade receivables, net	$ 2,612	$ 1,062

Trade Receivables, Net (Details Textual) $ in Thousands	Dec. 31, 2019 USD ($)
Trade Receivables, Net (Textual)
Past due trade receivables	$ 568
Over 90 Days [Member]
Trade Receivables, Net (Textual)
Past due trade receivables	$ 808

Other Accounts Receivable (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Other Accounts Receivable [Abstract]
Government authorities	$ 378	$ 738
Accrued income-IIA	71	332
Consumables	306	91
Prepaid expenses and other	672	344
Other accounts receivable	$ 1,427	$ 1,505

Property and Equipment, Net (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

$ 2,936

4,248

$ 2,936

Cost [Member]

11,428

8,940

5,566

2,813

(3,339)

(1,739)

Cost [Member] | Leasehold improvements [Member]

13,655

11,428

Cost [Member] | Office furniture and equipment [member]

Cost [Member] | Right of use assets [Member]

1,414

Cost [Member] | Laboratory equipment and Computers [Member]

1,414

794

633

161

Cost [Member] | System Components [Member]

831

794

2,717

3,553

5,521

2,645

(2,150)

(2,458)

(2,971)

^[1]

(1,023)

^[2]

Cost [Member] | Leased systems [Member]

3,117

2,717

6,369

4,627

2,150

2,458

(368)

^[3]

(716)

^[4]

Accumulated depreciation [Member]

8,151

6,369

2,388

1,831

1,602

882

(73)

(325)

3,916

2,388

Accumulated depreciation [Member] | Leasehold improvements [Member]

9,739

7,626

Accumulated depreciation [Member] | Office furniture and equipment [member]

^[5]

Accumulated depreciation [Member] | Right of use assets [Member]

460

460

Accumulated depreciation [Member] | Laboratory equipment and Computers [Member]

954

613

554

694

613

Accumulated depreciation [Member] | System Components [Member]

137

181

Accumulated depreciation [Member] | Leased systems [Member]

3,117

2,717

1,679

1,187

1,054

817

(73)

(325)

2,660

1,679

$ 5,491

$ 4,690

[1]	Includes impairment charge of $1,191 for the year ended December 31, 2019.
[2]	Includes impairment charge of $340 for the year ended December 31, 2018.
[3]	Derived mainly from systems leased to customers and sold
[4]	Derives mainly from purchase of system components
[5]	Represents an amount lower than $ 1

Property and Equipment, Net (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Property and Equipment, Net (Textual)
Represents an amount	$ 1
Impairments charge	$ 334	$ 340

Fair Value Measurement (Details) - USD ($)
$ in Thousands

Dec. 31, 2019

Dec. 31, 2018

Level 1 of Fair value hierarchy [Member]

^[1]

$ 78

$ 140

Level 2 of Fair value hierarchy [Member]

Level 3 of Fair value hierarchy [Member]

140

Employee and payroll accruals

[1]

Loan from bank: On August 17, 2017, the Company entered into an agreement for the receipt of a bank credit facility of up to $ 6,000 (the "Bank Credit Facility"). $ 3,000 was withdrawn during 2017 ("the first facility") and bear annual interest of 3-months Libor plus 6%. The remaining credit facility ("the second facility") may be withdrawn until March 15, 2018 bearing annual interest 3-months Libor plus 6.75%. The interest on the loans is payable on a quarterly basis and the loan principal is repayable in eight equal consecutive quarterly installments, whereby the first installment is due at the end of 18 and 12 months from the date of withdrawal of the loans from the first and second facilities, respectively. Also, according to the agreement, the Company will grant the bank warrants to purchase its ordinary shares for the total exercise price of up to $ 600. The warrants are exercisable for a period of five years from the date of any grant at an exercise price of $ 5.02 per share to be settled in cash or a cashless exercise mechanism. On October 3, 2017, the Company granted the bank 59,761 warrants at an aggregate exercise price of $300 as a condition for receiving the first facility. The fair value of the warrants at the grant date was estimated at $ 150 and the remaining balance of $2,850 was attributed to the loan. Transaction costs of $ 156 were allocated based on to the relative fair value of the warrants and loan. The warrants are classified as a financial liability and measured at fair value through profit or loss. The remaining warrants will be granted on the date of withdrawal of the loan from the second facility, so that the exercise amount will constitute 10% of the loan actually withdrawn from the second facility. The Company is entitled to make an early repayment of all or part of the loans. In such a case, the Company will pay the bank an early repayment fee as detailed in the agreement. As part of the agreement, and as a condition for using the first and second facilities, the Group undertook to provide the bank fixed and floating charges on all its assets, including property, cash, goodwill, intellectual property, rights and assets of any kind. In addition, the Group undertook to sign a guarantee letter, unlimited in amount, to secure the loans that will be provided by virtue of the agreement. Also, a senior fixed charge, unlimited in amount, was provided on a specific deposit in which an amount of not less than $ 2,000 was deposited ("the deposited amount"). It was agreed that if by March 16, 2018, the amount of loans actually withdrawn is less than $ 6,000, the deposited amount would be placed at one-third of the actual amount of loans outstanding on that date. In accordance with the amendments to the agreement signed up to March 14, 2019, loans under the Second facility may be withdrawn until May 30, 2019. The other terms of the first and second facility remain unchanged. On May 5, 2019, following the IPO, the Company repaid the balance of the loan.

Trade Payables (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Trade and other payables [abstract]
Open debt	$ 1,320	$ 2,243

Other Accounts Payable (Details) - USD ($)
$ in Thousands

Dec. 31, 2019

Dec. 31, 2018

Other Accounts Payable [abstract]

$ 1,216

$ 1,067

Accrued expenses

1,620

2,161

Tax payable

130

Liabilities to related parties

^[1]

128

101

Lease liabilities

414

Other accounts payable, total

$ 3,379

$ 3,459

[1]	A current non-interest bearing account.

Non-Current Liabilities (Details) - USD ($)
$ in Thousands

Dec. 31, 2019

Dec. 31, 2018

Non-Current Liabilities [Abstract]

Loan from bank

^[1]

$ 2,083

Warrants

^[1]

140

Liability in respect of research and development grants

^[2]

5,367

4,980

Deferred revenues and other liabilities

2,353

1,108

Lease liabilities

^[3]

663

Total non-current liabilities

$ 7,798

$ 8,311

[1]	Loan from bank: On August 17, 2017, the Company entered into an agreement for the receipt of a bank credit facility of up to $ 6,000 (the "Bank Credit Facility"). $ 3,000 was withdrawn during 2017 ("the first facility") and bear annual interest of 3-months Libor plus 6%. The remaining credit facility ("the second facility") may be withdrawn until March 15, 2018 bearing annual interest 3-months Libor plus 6.75%. The interest on the loans is payable on a quarterly basis and the loan principal is repayable in eight equal consecutive quarterly installments, whereby the first installment is due at the end of 18 and 12 months from the date of withdrawal of the loans from the first and second facilities, respectively. Also, according to the agreement, the Company will grant the bank warrants to purchase its ordinary shares for the total exercise price of up to $ 600. The warrants are exercisable for a period of five years from the date of any grant at an exercise price of $ 5.02 per share to be settled in cash or a cashless exercise mechanism. On October 3, 2017, the Company granted the bank 59,761 warrants at an aggregate exercise price of $300 as a condition for receiving the first facility. The fair value of the warrants at the grant date was estimated at $ 150 and the remaining balance of $2,850 was attributed to the loan. Transaction costs of $ 156 were allocated based on to the relative fair value of the warrants and loan. The warrants are classified as a financial liability and measured at fair value through profit or loss. The remaining warrants will be granted on the date of withdrawal of the loan from the second facility, so that the exercise amount will constitute 10% of the loan actually withdrawn from the second facility. The Company is entitled to make an early repayment of all or part of the loans. In such a case, the Company will pay the bank an early repayment fee as detailed in the agreement. As part of the agreement, and as a condition for using the first and second facilities, the Group undertook to provide the bank fixed and floating charges on all its assets, including property, cash, goodwill, intellectual property, rights and assets of any kind. In addition, the Group undertook to sign a guarantee letter, unlimited in amount, to secure the loans that will be provided by virtue of the agreement. Also, a senior fixed charge, unlimited in amount, was provided on a specific deposit in which an amount of not less than $ 2,000 was deposited ("the deposited amount"). It was agreed that if by March 16, 2018, the amount of loans actually withdrawn is less than $ 6,000, the deposited amount would be placed at one-third of the actual amount of loans outstanding on that date. In accordance with the amendments to the agreement signed up to March 14, 2019, loans under the Second facility may be withdrawn until May 30, 2019. The other terms of the first and second facility remain unchanged. On May 5, 2019, following the IPO, the Company repaid the balance of the loan.
[2]	Government grants: Moach received from the Israeli Government participation grants in research and development and, in return, it is currently obligated to pay royalties amounting to 3% of sales of products from such grants up to 100% of total grants received. As of December 31, 2019, the maximum royalties payable by the Company in the future in respect of active projects is $ 12,878, including interest at the Libor rate. Through December 31, 2019, royalties paid were $ 1,983.
[3]	Lease liabilities:

Non-Current Liabilities (Details 1) - USD ($)
$ in Thousands

Dec. 31, 2019

Dec. 31, 2018

Maturity analysis:

Less than one year

$ 525

One to five years

1,106

Total lease commitments

1,631

Impact of discounting remaining lease payments

217

Total lease liabilities as of January 1, 2019

1,414

Lease liabilities as of December 31, 2019

1,077

Current

414

Non-current

^[1]

663

Total

$ 1,077

[1]	Lease liabilities:

Non-Current Liabilities (Details Textual) - USD ($) $ / shares in Units, $ in Thousands		1 Months Ended	12 Months Ended
	Mar. 15, 2018	Aug. 17, 2017	Dec. 31, 2019	Oct. 03, 2017
Non-Current Liabilities (Textual)
Bank credit facility		$ 6,000		$ 300
Withdrawn from bank		$ 3,000
Bear annual interest	6.75%	6.00%
Ordinary shares of total exercise price		$ 600
Exercise price		$ 5.02
Credit facility, description			The remaining credit facility ("the second facility") may be withdrawn until March 15, 2018 bearing annual interest 3-months Libor plus 6.75%. The interest on the loans is payable on a quarterly basis and the loan principal is repayable in eight equal consecutive quarterly installments, whereby the first installment is due at the end of 18 and 12 months from the date of withdrawal of the loans from the first and second facilities, respectively.
Bank warrants				59,761
Maximum royalties payable including interest			$ 12,878
Royalties paid			1,983
Fair value of the warrants			150
Remaining loan			2,850
Transaction costs			$ 156
Credit facility agreement, description			A senior fixed charge, unlimited in amount, was provided on a specific deposit in which an amount of not less than $ 2,000 was deposited ("the deposited amount"). It was agreed that if by March 16, 2018, the amount of loans actually withdrawn is less than $ 6,000, the deposited amount would be placed at one-third of the actual amount of loans outstanding on that date.

Financial Instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Statement Line Items [Line Items]
Trade payables	$ 1,320	$ 2,243
Other accounts payable	2,965	3,394
Loan from bank		3,398
Long-term liabilities	2	3
Liability in respect of research and development grants	13,602	13,484
Lease liability	1,292
Total financial instruments	19,181	22,521
Greater Than 5 years [Member]
Statement Line Items [Line Items]
Trade payables
Other accounts payable
Loan from bank
Long-term liabilities
Liability in respect of research and development grants	6,792	7,378
Total financial instruments	6,792	7,378
4 to 5 years [Member]
Statement Line Items [Line Items]
Trade payables
Other accounts payable
Loan from bank
Long-term liabilities
Liability in respect of research and development grants	1,980	1,890
Total financial instruments	1,980	1,890
3 to 4 years [Member]
Statement Line Items [Line Items]
Trade payables
Other accounts payable
Loan from bank
Long-term liabilities
Liability in respect of research and development grants	1,635	1,545
Total financial instruments	1,635	1,545
2 to 3 years [Member]
Statement Line Items [Line Items]
Trade payables
Other accounts payable
Loan from bank		773
Long-term liabilities
Liability in respect of research and development grants	1,335	1,185
Lease liability	271
Total financial instruments	1,606	1,958
Less than one year [Member]
Statement Line Items [Line Items]
Trade payables	1,320	2,243
Other accounts payable	2,965	3,394
Loan from bank		988
Long-term liabilities	1	2
Liability in respect of research and development grants	810	631
Lease liability	572
Total financial instruments	5,668	7,258
1 to 2 years [Member]
Statement Line Items [Line Items]
Trade payables
Other accounts payable
Loan from bank		1,637
Long-term liabilities	1	1
Liability in respect of research and development grants	1,050	855
Lease liability	449
Total financial instruments	$ 1,500	$ 2,493

Financial Instruments (Details 1) - Level 2 [Member] $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($)
Statement Line Items [Line Items]
Opening balance at January 1, 2019	$ 140
Amounts transferred to the statement of comprehensive loss as finance income	(62)
Closing balance at December 31, 2019	$ 78

Financial Instruments (Details 2) - USD ($) $ in Thousands	12 Months Ended
Financial Instruments (Details 2) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Gain (loss) from the change:
Increase of 5% in exchange rate	$ 88	$ 3
Decrease of 5% in exchange rate	$ (88)	$ (3)

Financial Instruments (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Financial Instruments (Textual)
Balance of financial liabilities	$ 78	$ 140
Excess of financial assets over financial liabilities	$ 1,761
Financial instruments, description	The Company has excess of financial assets over financial liabilities in Euro and Yen in relation to US dollar of $ 1,487 and $415, respectively. An increase or decrease of 5% of the US dollar relative to the Euro or Yen would not have a significant effect on the Company.
Financial liabilities	$ 387

The amount of liabilities that are: (a) a contractual obligation: (i) to deliver cash or another financial asset to another entity; or (ii) to exchange financial assets or financial liabilities with another entity under conditions that are potentially unfavourable to the entity; or (b) a contract that will, or may be, settled in the entity’s own equity instruments and is: (i) a non-derivative for which the entity is, or may be, obliged to deliver a variable number of the entity’s own equity instruments; or (ii) a derivative that will, or may be, settled other than by the exchange of a fixed amount of cash or another financial asset for a fixed number of the entity’s own equity instruments. For this purpose, rights, options or warrants to acquire a fixed number of the entity’s own equity instruments for a fixed amount of any currency are equity instruments if the entity offers the rights, options or warrants pro rata to all of its existing owners of the same class of its own non-derivative equity instruments. Also, for those purposes the entity’s own equity instruments do not include puttable financial instruments that are classified as equity instruments in accordance with paragraphs 16A-16B of IAS 32, instruments that impose on the entity an obligation to deliver to another party a pro rata share of the net assets of the entity only on liquidation and are classified as equity instruments in accordance with paragraphs 16C-16D of IAS 32, or instruments that are contracts for the future receipt or delivery of the entity’s own equity instruments. As an exception, an instrument that meets the definition of a financial liability is classified as an equity instrument if it has all the features and meets the conditions in paragraphs 16A-16B or paragraphs 16C-16D of IAS 32. [Refer: Financial instruments, class [member]; Financial assets; Derivatives [member]]

+ References + Details

Employee Benefits and Liabilities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Employee Benefits and Liabilities (Textual)
Expense in defined contribution plans	$ 325	$ 299

Taxes on Income (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
Taxes on Income (Details) - USD ($) $ in Thousands	Dec. 22, 2017	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Taxes on Income (Textual)
Corporate federal income tax rate			4.00%
Carryforward losses for tax purposes		$ 3,500
Description of amendment income tax rate			Technological preferred enterprise - an enterprise for which total consolidated revenues of its parent company and all subsidiaries are less than NIS 10 billion. A technological preferred enterprise, as defined in the amendment, which is located in the center of Israel will be subject to tax at a rate of 12% on profits deriving from intellectual property (in development area A - 7.5%).		According to the amendment, a "beneficiary enterprise" located in development area A will be subject to a tax rate of 7.5% instead of 9% effective from January 1, 2017 and thereafter (the tax rate applicable to preferred enterprises located in other areas remains at 16%).
Moach [Member]
Taxes on Income (Textual)
Income tax rate		23.00%	23.00%	24.00%
Carryforward losses for tax purposes		$ 4,700
USA Inc [Member]
Taxes on Income (Textual)
Income tax rate				27.00%
USA Inc [Member] \| Top of range [member]
Taxes on Income (Textual)
Income tax rate				40.00%
Corporate federal income tax rate	35.00%
USA Inc [Member] \| Bottom of range [member]
Taxes on Income (Textual)
Income tax rate				35.00%
Corporate federal income tax rate	21.00%

Contingent Liabilities, Commitments and Charges (Details) ₪ in Thousands, $ in Thousands	1 Months Ended							12 Months Ended
	Oct. 31, 2018	Feb. 22, 2018	Sep. 30, 2017	Jul. 31, 2015 ILS (₪)	Apr. 30, 2014 ILS (₪)	Mar. 31, 2014	Aug. 25, 2013	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)
Contingent Liabilities, Commitments and Charges (Textual)
Description of distribution fees payment								The distributor is obligated to pay the Company distribution fees of 190 million Yen (approximately $1.8 million), whereby 100 million Yen (approximately $1 million as of December 31, 2019) paid in September 2013 and 90 million Yen (approximately $0.8 million as of December 31, 2019) paid in 2019.
Revenue target								10.00%
Deferred revenues								$ 1,305	$ 1,333
Description of development plan		The Company's approved budget for the development plan is NIS 1.1 million, of which 66% (approximately NIS 0.7 million) which will be provided to the Company as a non-royalty bearing grant over the term of the plan.					The plan was approved for three years and extended up to five years, in the framework of which the Company was approved work plans with participation rate of up to 66% of a non-royalty bearing grant.
Description of annual work plan	The MAGNET committee approved an annual work plan for the fifth year with the budget of NIS 2,300, of out of which 55% (NIS 1,300) was provided to the Company as non-royalty bearing grants to date.		The MAGNET committee approved an annual work plan for the fifth year with the budget of NIS 2,300, of out of which 55% (NIS 1,300) was provided to the Company as non-royalty bearing grants to date.
Exclusivity fee \| ₪					₪ 1,000
Royalties fixed annual amount								2
Current provision for royalties								$ 124
Description of royalty payment								a)1% of net sales systems based upon certain patents (which include technology licensed from PHS); b)3% for the first $10,000 of net sales, and 2% for net sales over $10,000, for all other Deep TMS products solely based on certain patents licensed exclusively from Yeda provided however in the event that the products are sold to a sublicensee and are thereafter sold by such sublicensee, the royalties paid to Yeda will be based on the higher of the net sales by the licensee or the net sales of the sale by the sublicensee.c)4%-8% of the net cash proceeds that the Company receives in respect of granting sublicenses or options for sublicenses dependent on the patents licensed.
Fixed rate								5.00%
Refundable fees \| ₪				₪ 600
Top of range [member]
Contingent Liabilities, Commitments and Charges (Textual)
Royalties rates								2.00%
Bottom of range [member]
Contingent Liabilities, Commitments and Charges (Textual)
Royalties rates								1.60%
Sub-license agreement [Member]
Contingent Liabilities, Commitments and Charges (Textual)
Revenue target								8.00%
Current provision for royalties								$ 248
Description of royalty payment								In return, Inc is committed to pay PHS royalties at fixed annual amount of $2 from January 1, 2004 and royalties of 2% of net sales beyond this amount as defined in the agreement.
Marketing and Distribution Agreement [Member]
Contingent Liabilities, Commitments and Charges (Textual)
Marketing and distribution agreement, description						In March 2014, the Company entered into an exclusive marketing and distribution agreement of the Company's system with a third party in Israel for a maximum period of 15 years, subject to meeting minimum sales targets as set in the agreement. In April 2014, the distributor paid the Company a one-time exclusivity fee of NIS 1 million. Effective July 2019, the Company assumed direct operations for customers in Israel, after terminating its distribution agreement with its Israeli distributor, pursuant to which a portion of the exclusivity fee (up to NIS 600) was determined to be refundable depending on future sales.

Equity (Details) - shares	Dec. 31, 2019	Dec. 31, 2018
Equity [Abstract]
Number of shares, Authorized	25,000,000	25,000,000
Number of shares, Issued and outstanding	22,236,368	16,640,446

Equity (Details 1)
$ in Thousands

12 Months Ended

Dec. 31, 2019

USD ($)

Issuance of shares, shares | shares

Balance, shares | shares

16,640,446

5,595,922

^[1]

Balance, shares | shares

22,236,368

NIS [Member]

December 8, 2015 [Member]

Balance | $

$ 170,897

Issuance of shares | $

62,270

^[1]

Balance | $

$ 233,167

[1]

Equity (Details Textual) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2017
Equity (Textual)
Ordinary shares issued		1,924,662
Share price		$ 8,578
Issuance expenses		133
Description of initial publlic offering	In April 2019, the Company closed its initial public offering in Nasdaq of 2,500,000 American Depositary Shares ("ADSs"), each representing two ordinary shares of Brainsway, at a public offering price of $11.00 per ADS. The gross proceeds to the Company from the offering, before deducting the underwriting discounts and commissions and estimated offering expenses, are approximately $27.5 million.
NIS [Member]
Equity (Textual)
Share price		$ 29,928
Shares par value		$ 0.3

Share-Based Payment (Details) - USD ($) $ in Thousands	12 Months Ended
Share-Based Payment (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Share-Based Payment [Abstract]
Equity-settled share-based payment plans to employees, directors and consultants	$ 1,263	$ 710	$ 1,028

Share-Based Payment (Details 1) - 12 months ended Dec. 31, 2019 - Share-based payment arrangements [member]
$ / shares in Units, $ in Thousands

USD ($)

$ / shares

₪ / shares

December 8, 2015

Employees and Consultant

292,250

^[1]

$ 6.70

292,250

December 8, 2025

December 8, 2015 [Member] | NIS [Member]

$ 1,053

December 8, 2015 [Member]

₪ 25.99

December 8, 2015

Employees and Consultant

270,000

^[1]

$ 8.04

270,000

December 8, 2025

December 8, 2015 [Member] | NIS [Member]

$ 1,247

31.19

April 1, 2017 [Member]

April 1, 2017

Chief Executive Officer and Director

566,262

^[1]

$ 5.47

566,262

April 1, 2025

April 1, 2017 [Member] | NIS [Member]

$ 1,100

December 3, 2017 [Member]

19.97

December 3, 2017

Director

27,500

^[1]

$ 6.12

9,167

December 3, 2027

December 3, 2017 [Member] | NIS [Member]

$ 54

November 12, 2018 [Member]

21.37

November 12, 2018

Directors

110,000

^[1]

$ 6.36

November 12, 2026

November 12, 2018 [Member] | NIS [Member]

$ 298

November 12, 2018 [Member]

23.39

November 12, 2018

November 12, 2018 [Member] | Top of range [member]

Employees and officers

672,600

November 12, 2026

$ 2,299

November 12, 2018 [Member] | Bottom of range [member]

^[1]

$ 6.59

November 12, 2018 [Member] | NIS [Member] | Top of range [member]

^[1]

$ 6.36

November 12, 2018 [Member] | NIS [Member] | Bottom of range [member]

24.22

23.39

October 1, 2019 [Member]

October 1, 2019

Chief Financial and Operating Officer

50,000

^[1]

$ 5.48

October 1, 2027

October 1, 2019 [Member] | NIS [Member]

$ 100

Number of options, Outstanding at beginning of year

₪ 19.08

[1]	As of grant date.

Share-Based Payment (Details 2) - $ / shares	12 Months Ended
Share-Based Payment (Details 2) - $ / shares	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Statement Line Items [Line Items]
Dividend yield	0.00%	0.00%	0.00%
Expected exercise factor	$ 2.8	$ 2.8	$ 2.8
Post-vesting forfeiture rate	5.00%	5.00%
Bottom of range [member]
Statement Line Items [Line Items]
Expected volatility	40.06%	40.51%	40.58%
Risk-free interest rate	1.61%	0.28%	0.11%
Post-vesting forfeiture rate			5.00%
Top of range [member]
Statement Line Items [Line Items]
Expected volatility	48.09%	48.25%	56.77%
Risk-free interest rate	1.73%	2.22%	2.00%
Post-vesting forfeiture rate			10.00%

Share-Based Payment (Details 3) - $ / shares

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Share-Based Payment [Abstract]

2,425,192

1,721,059

Number of options, Granted

50,000

962,300

Number of options, Expired

(59,765)

(199,499)

Number of options, Forfeited

(201,615)

(58,668)

Number of options, Outstanding at year end

2,213,812

2,425,192

Number of options, Exercisable at year end

1,362,879

912,893

Weighted average of exercise price, Outstanding at the beginning of year

^[1]

$ 6.6

$ 7.9

Weighted average of exercise price, Granted

^[1]

5.5

6.3

Weighted average of exercise price, Expired

^[1]

7.5

10.8

Weighted average of exercise price, Forfeited

^[1]

7.0

7.9

Weighted average of exercise price, Outstanding at year end

^[1]

7.1

6.6

Weighted average of exercise price, Exercisable at year end

^[1]

$ 7.38

$ 7.17

[1]	The exercise price of all options denominated in NIS and was translated to USD in the table above using the exchange rate as of December 31, 2019 and 2018, respectively.

Share-Based Payment (Details Textual) - $ / shares	12 Months Ended
Share-Based Payment (Details Textual) - $ / shares	Dec. 31, 2019	Dec. 31, 2018
Share-Based Payment (Textual)
Weighted average remaining contractual life	6 years
NIS [Member] \| Top of range [member]
Share-Based Payment (Textual)
Exercise Price	$ 59.13	$ 59.13
NIS [Member] \| Bottom of range [member]
Share-Based Payment (Textual)
Exercise Price	$ 19.08	$ 19.08

Additional Information to the Statements of Comprehensive Loss (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Additional Information to the Statements of Comprehensive Loss [Abstract]
Revenues from lease	$ 13,218	$ 9,569	$ 6,654
Revenues from sale	9,883	6,828	4,491
Revenue total	$ 23,101	$ 16,397	$ 11,145

Expiry date 2020-01-01: The income arising in the course of an entity's ordinary activities. Income is increases in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases of liabilities that result in an increase in equity, other than those relating to contributions from equity participants. Effective 2020-01-01: The income arising in the course of an entity's ordinary activities. Income is increases in assets, or decreases in liabilities, that result in increases in equity, other than those relating to contributions from holders of equity claims.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 8
-IssueDate 2019-01-01
-Paragraph 28
-Subparagraph a
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=8&code=ifrs-tx-2019-en-r&anchor=para_28_a&doctype=Standard
-URIDate 2019-03-27

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 8
-IssueDate 2019-01-01
-Paragraph 23
-Subparagraph a
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=8&code=ifrs-tx-2019-en-r&anchor=para_23_a&doctype=Standard
-URIDate 2019-03-27

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 8
-IssueDate 2019-01-01
-Paragraph 32
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=8&code=ifrs-tx-2019-en-r&anchor=para_32&doctype=Standard
-URIDate 2019-03-27

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 8
-IssueDate 2019-01-01
-Paragraph 33
-Subparagraph a
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=8&code=ifrs-tx-2019-en-r&anchor=para_33_a&doctype=Standard
-URIDate 2019-03-27

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 8
-IssueDate 2019-01-01
-Paragraph 34
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=8&code=ifrs-tx-2019-en-r&anchor=para_34&doctype=Standard
-URIDate 2019-03-27

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Name IAS
-Number 1
-IssueDate 2019-01-01
-Paragraph 82
-Subparagraph a
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IAS&num=1&code=ifrs-tx-2019-en-r&anchor=para_82_a&doctype=Standard
-URIDate 2019-03-27

Reference 7: http://www.xbrl.org/2003/role/exampleRef
-Name IAS
-Number 1
-IssueDate 2019-01-01
-Paragraph 103
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IAS&num=1&code=ifrs-tx-2019-en-r&anchor=para_103&doctype=Standard
-URIDate 2019-03-27

Reference 8: http://www.xbrl.org/2003/role/exampleRef
-Name IAS
-Number 1
-IssueDate 2019-01-01
-Paragraph 102
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IAS&num=1&code=ifrs-tx-2019-en-r&anchor=para_102&doctype=Standard
-URIDate 2019-03-27

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 5
-IssueDate 2019-01-01
-Paragraph 33
-Subparagraph b
-Clause i
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=5&code=ifrs-tx-2019-en-r&anchor=para_33_b_i&doctype=Standard
-URIDate 2019-03-27

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 12
-IssueDate 2019-01-01
-Paragraph B12
-Subparagraph b
-Clause v
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=12&code=ifrs-tx-2019-en-r&anchor=para_B12_b_v&doctype=Appendix&subtype=B
-URIDate 2019-03-27

Reference 11: http://www.xbrl.org/2003/role/exampleRef
-Name IFRS
-Number 12
-IssueDate 2019-01-01
-Paragraph B10
-Subparagraph b
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=12&code=ifrs-tx-2019-en-r&anchor=para_B10_b&doctype=Appendix&subtype=B
-URIDate 2019-03-27

+ Details

Additional Information to the Statements of Comprehensive Loss (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Statement Line Items [Line Items]
Revenues	$ 23,101	$ 16,397	$ 11,145
Percentage of revenues	100.00%	100.00%	100.00%
U.S [Member]
Statement Line Items [Line Items]
Revenues	$ 20,636	$ 14,478	$ 9,957
Percentage of revenues	89.00%	88.00%	89.00%
Europe [Member]
Statement Line Items [Line Items]
Revenues	$ 1,353	$ 1,102	$ 871
Percentage of revenues	6.00%	7.00%	8.00%
Israel [Member]
Statement Line Items [Line Items]
Revenues	$ 267	$ 371	$ 180
Percentage of revenues	1.00%	2.00%	2.00%
Other [Member]
Statement Line Items [Line Items]
Revenues	$ 845	$ 446	$ 137
Percentage of revenues	4.00%	3.00%	1.00%

Weighted number of shares

+ References

+ Details

Additional Information to the Statements of Comprehensive Loss (Details 2) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Additional Information to the Statements of Comprehensive Loss [Abstract]
Not later than one year	$ 8,527	$ 7,884
Later than one year and not later than five years	12,723	13,402
Later than five years	571	148
Total future minimum lease payments under non cancellable operating leases	$ 21,821	$ 21,434

Additional Information to the Statements of Comprehensive Loss (Details 3) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Statement Line Items [Line Items]
Cost of revenues	$ 5,129	$ 3,589	$ 2,595
Sales [Member]
Statement Line Items [Line Items]
Cost of revenues	2,473	1,666	1,112
Lease [Member]
Statement Line Items [Line Items]
Cost of revenues	$ 2,656	$ 1,923	$ 1,483

Additional Information to the Statements of Comprehensive Loss (Details 4) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Additional Information to the Statements of Comprehensive Loss [Abstract]
Salaries and related benefits	$ 3,338	$ 3,365	$ 2,954
Subcontractors	2,620	2,241	1,584
Laboratory materials	687	491	453
Patents	334	198	134
Share-based payment	399	31	180
Travel	112	65	35
Depreciation	39	31	35
Other	604	658	362
Less-Government grants	(257)	(924)	(394)
Research and development expenses, net	$ 7,876	$ 6,156	$ 5,343

Additional Information to the Statements of Comprehensive Loss (Details 5) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Additional Information to the Statements of Comprehensive Loss [Abstract]
Salaries and related benefits	$ 6,419	$ 4,252	$ 3,597
Agent commissions	221	215	138
Marketing	5,239	2,891	1,690
Travel	1,176	865	777
Share-based payment	214	122	129
Selling and marketing expenses	$ 13,269	$ 8,345	$ 6,331

Additional Information to the Statements of Comprehensive Loss (Details 6) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Statement Line Items [Line Items]
General and administrative expenses	$ 5,303	$ 3,421	$ 3,487
Salaries and related benefits [Member]
Statement Line Items [Line Items]
General and administrative expenses	1,774	1,235	1,179
Professional fees and office expenses [Member]
Statement Line Items [Line Items]
General and administrative expenses	1,770	1,176	1,002
Depreciation [Member]
Statement Line Items [Line Items]
General and administrative expenses	81	30	20
Travel [Member]
Statement Line Items [Line Items]
General and administrative expenses	222	127	64
Allowance for doubtful accounts [Member]
Statement Line Items [Line Items]
General and administrative expenses	835	296	503
Share-based payment [Member]
Statement Line Items [Line Items]
General and administrative expenses	$ 621	$ 557	$ 719

Additional Information to the Statements of Comprehensive Loss (Details 7) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Finance income:
Interest-income revaluation of bank deposits	$ 175	$ 44	$ 22
Revaluation of warrants	62		38
Exchange rate differences			73
Finance income	237	44	133
Finance expense:
Liability in respect of research and development grants	969	519	273
Interest expense and amortization of deferred costs- loan from bank	283	354	87
Bank commissions	108	41	47
Revaluation of warrants		28
Exchange rate differences	192	258
Interest expense of lease liability	115
Finance expense	$ 1,667	$ 1,200	$ 407

Net Loss Per Share (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

Earnings per share [abstract]

^[1]

20,506,202

16,640,446

14,768,514

Loss attributable to equity holders of the Company

$ 10,328

$ 6,479

$ 7,054

[1]	Computation of diluted loss per share did not include potential ordinary shares that would result from conversion of outstanding options and warrants, since their conversion has anti-dilutive effect.

The total of income less expenses from continuing and discontinued operations, excluding the components of other comprehensive income. [Refer: Other comprehensive income]

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Name IAS
-Number 7
-IssueDate 2019-01-01
-Paragraph 18
-Subparagraph b
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IAS&num=7&code=ifrs-tx-2019-en-r&anchor=para_18_b&doctype=Standard
-URIDate 2019-03-27

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 1
-IssueDate 2019-01-01
-Paragraph 24
-Subparagraph b
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=1&code=ifrs-tx-2019-en-r&anchor=para_24_b&doctype=Standard
-URIDate 2019-03-27

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 1
-IssueDate 2019-01-01
-Paragraph 32
-Subparagraph a
-Clause ii
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=1&code=ifrs-tx-2019-en-r&anchor=para_32_a_ii&doctype=Standard
-URIDate 2019-03-27

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 8
-IssueDate 2019-01-01
-Paragraph 28
-Subparagraph b
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=8&code=ifrs-tx-2019-en-r&anchor=para_28_b&doctype=Standard
-URIDate 2019-03-27

Reference 5: http://www.xbrl.org/2003/role/exampleRef
-Note Effective on first application of IFRS 9
-Name IFRS
-Number 4
-IssueDate 2019-01-01
-Paragraph 39L
-Subparagraph e
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=4&code=ifrs-tx-2019-en-b&anchor=para_39L_e&doctype=Standard
-URIDate 2019-03-27

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 8
-IssueDate 2019-01-01
-Paragraph 23
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=8&code=ifrs-tx-2019-en-r&anchor=para_23&doctype=Standard
-URIDate 2019-03-27

Reference 7: http://www.xbrl.org/2003/role/exampleRef
-Name IFRS
-Number 12
-IssueDate 2019-01-01
-Paragraph B10
-Subparagraph b
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=12&code=ifrs-tx-2019-en-r&anchor=para_B10_b&doctype=Appendix&subtype=B
-URIDate 2019-03-27

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Name IAS
-Number 1
-IssueDate 2019-01-01
-Paragraph 106
-Subparagraph d
-Clause i
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IAS&num=1&code=ifrs-tx-2019-en-r&anchor=para_106_d_i&doctype=Standard
-URIDate 2019-03-27

Reference 9: http://www.xbrl.org/2003/role/exampleRef
-Note Effective 2021-01-01
-Name IFRS
-Number 17
-IssueDate 2019-01-01
-Paragraph 113
-Subparagraph b
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=17&code=ifrs-tx-2019-en-r&anchor=para_113_b&doctype=Standard
-URIDate 2019-03-27

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Name IAS
-Number 1
-IssueDate 2019-01-01
-Paragraph 81A
-Subparagraph a
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IAS&num=1&code=ifrs-tx-2019-en-r&anchor=para_81A_a&doctype=Standard
-URIDate 2019-03-27

+ Details

Balances and Transactions with Related Parties (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Key Management Personnel [Member]
Statement Line Items [Line Items]
Other accounts payable	$ 102	$ 95
Other Interested and Related Parties [Member]
Statement Line Items [Line Items]
Other accounts payable	$ 26	$ 6

Balances and Transactions with Related Parties (Details 1) $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($) Numbers	Dec. 31, 2018 USD ($) Numbers	Dec. 31, 2017 USD ($) Numbers
Balances and Transactions With Related Parties [Abstract]
Salary to those employed by the Company or on its behalf \| $	$ 945	$ 654	$ 593
Directors' fees to those not employed by the Company or on its behalf \| $	$ 90	$ 100	$ 98
Number of individuals to whom the salary and benefits relate:
Related and interested parties employed by the Company or on its behalf	3	4	4
Directors not employed by the Company	8	6	7
Benefits to interested and related parties	11	10	11

Balances and Transactions with Related Parties (Details 2) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Balances and Transactions With Related Parties [Abstract]
Short-term benefits	$ 3	$ 16	$ 11
Share-based payment to those employed by the Company or on its behalf	190	394	501
Share-based payment to those not employed by the Company or on its behalf	$ 147	$ 41	$ 2

Balances and Transactions with Related Parties (Details 3) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

Research and development expenses

$ 7,876

$ 6,156

$ 5,343

General and administrative expenses

5,303

3,421

3,487

Key Management Personnel [Member]

Research and development expenses

^[1]

113

207

200

General and administrative expenses

^[1]

943

776

821

Interested and related parties

^[1]

1,056

983

1,021

Other Interested and Related Parties [Member]