COMMITMENTS AND CONTINGENCIES

12 Months Ended

Jun. 30, 2012

COMMITMENTS AND CONTINGENCIES [Abstract]

COMMITMENTS AND CONTINGENCIES

NOTE 8:-COMMITMENTS AND CONTINGENCIES

a. The Subsidiary leases facilities under operating lease agreements. The leasing period for the leased area is 62 months as of July 1, 2007. The monthly payment is 64 thousand NIS starting from September 1, 2007 and is linked to the Israeli Consumer Price Index ("CPI"). On September 1, 2012, the Subsidiary extended the leasing period by 4 months. As of June 30, 2012 the monthly payment on leasing is approximately $20.

On January 15, 2012, the Subsidiary leases additional facilities under operating lease agreement. The leasing period for the additional leased area is 59 months as of June 30, 2012. The monthly payment is 143 thousand NIS and is linked to the Israeli Consumer Price Index ("CPI"). The Subsidiary may extend the leasing period by 60 months, if an advanced notice is given. As of June 30, 2012, the monthly leasing payments for the new facilities are approximately $37.

In addition, the Subsidiary has issued a bank guarantee in favor of the lessor in the amount of $350.

Lease expenses amounted $382, $245 and $227 for the years ended June 30, 2012, 2011 and 2010, respectively.

As of June 30, 2012 future rental commitments under the existing lease agreement and supplement are as follows:

Year ending June 30, 2013	$	567
Year ending June 30, 2014		438
Year ending June 30, 2015		438
Year ending June 30, 2016		438
Year ending June 30, 2017		110
Total	$	1,991

b. The Subsidiary leases 18 cars under operating lease agreements, which expire in years 2012 through 2015. The monthly payment is approximately $16 and is linked to the CPI. In order to secure these agreements, the Subsidiary pledged a deposit in the amount of $34.

Lease expenses amounted to $176, $148 and $116 for the years ended June 30, 2012, 2011 and 2010, respectively.

As of June 30, 2012 future rental commitments under the existing lease agreements are as follows:

Year ending June 30, 2013	$	166
Year ending June 30, 2014		110
Year ending June 30, 2015		45
Total	$	321

c. A deposit in the amount of $1,253 was pledged by the Company to secure the hedging transactions, credit line and Bank guarantees.

d. As of June 30, 2012, the Subsidiary has contractual obligations to our suppliers and contractor as follows:

Year ending June 30, 2013	$	4,523
Year ending June 30, 2014		436
Total	$	4,959

e. Under the Law for the Encouragement of Industrial Research and Development, 1984, commonly referred to as the Research Law, research and development programs that meet specified criteria and are approved by a governmental committee of the OCS are eligible for grants of up to 50% of the project's expenditures, as determined by the research committee, in exchange for the payment of royalties from the sale of products developed under the program. Regulations under the Research Law generally provide for the payment of royalties to the Chief Scientist of 3% to 5% on sales of products and services derived from a technology developed using these grants until 100% of the dollar-linked grant is repaid. The Company's obligation to pay these royalties is contingent on its actual sale of such products and services. In the absence of such sales, no payment is required. Outstanding balance of the grants will be subject to interest at a rate equal to the 12 month LIBOR applicable to dollar deposits that is published on the first business day of each calendar year. Following the full repayment of the grant, there is no further liability for royalties.

Through June 30, 2012 and 2011, total grants obtained aggregated $9,412 and $6,256, respectively.

Through June 30, 2012 and 2011, total royalties expenses amounted to $21 and $0, respectively.