6-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

For the month of September 2023

Commission file number: 001-33668

SUPERCOM LTD.

(Translation of Registrant’s name into English)

3, Rothschild Street,

Tel Aviv,

Israel

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F ☒    Form 40-F ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐

SUPERCOM LTD.

6-K Items

1.	Condensed Interim Consolidated Financial Statements of SuperCom Ltd. and its subsidiaries as of June 30, 2023.
2.	Management's Discussion and Analysis of Results Operations.
101.1NS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definitions Linkbase Document

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

SuperCom Ltd.

By: /s/ Ordan Trabelsi

Name: Ordan Trabelsi

Title: Chief Executive Officer

Date: September 14, 2023

EX-99

Exhibit 1

SUPERCOM LTD

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
as of June 30, 2023

(Unaudited)

SUPERCOM LTD

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
as of June 30, 2023

(Unaudited)

IN U.S. DOLLARS

INDEX

	Page
Interim Consolidated Balance Sheets	3
Interim Consolidated Statements of Operations	4
Interim Statements of Changes in Shareholders' equity	5
Interim Consolidated Statements of Cash Flows	6
Notes to Interim Consolidated Financial Statements	7 – 9

- - - - - - - - - - - - - - - - - - - - -

2

SUPERCOM LTD

CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS

(U.S. dollars in thousands)

	June 30,			December 31,
	2023			2022
	Unaudited			Audited
CURRENT ASSETS
Cash and cash equivalents		1,139			4,042
Restricted bank deposits		382			463
Trade receivable, net		12,431			10,852
Other accounts receivable and prepaid expenses		2,353			2,239
Inventories, net (Note 3)		3,059			3,411
Patents		5,283			5,283
Total current assets		24,647			26,290
LONG-TERM ASSETS
Severance pay funds		458			482
Deferred tax long term		501			501
Property and equipment, net		2,397			1,640
Other Intangible assets, net (Note 4)		5,504			5,617
Goodwill		7,026			7,026
Operating lease right-of-use asset		260			484
Total non-current assets		16,146			15,750
TOTAL ASSETS		40,793			42,040
CURRENT LIABILITIES
Trade payables		474			1,267
Employees and payroll accruals		1,075			1,339
Related parties		142			168
Accrued expenses and other liabilities		283			469
Deferred revenue		507			715
Short-term loan and other		970			1,281
Total current liabilities		3,451			5,239
LONG-TERM LIABILITIES
Long-term loan		32,909			32,600
Deferred revenue		299			269
Deferred tax liability LT		170			170
Accrued severance pay		497			523
Operating lease liabilities		-			108
Total non-current liabilities		33,875			33,670
SHAREHOLDERS' EQUITY:
Ordinary shares		4,910			3,057
Additional paid-in capital		104,073			103,000
Accumulated deficit		(105,516	)		(102,926	)
Total shareholders' equity		3,467			3,131
Total Liabilities and Shareholders' Equity		40,793			42,040

The accompanying notes are an integral part of these interim consolidated financial statements.

3

SUPERCOM LTD

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS

(U.S. dollars in thousands, except per share data)

	Six months ended June 30
	2023			2022
	Unaudited			Unaudited
REVENUES		14,124			6,264
COST OF REVENUES		10,276			3,648
GROSS PROFIT		3,848			2,616
OPERATING EXPENSES
Research and development, net		1,662			1,792
Sales and marketing		1,128			1,463
General and administration		2,374			2,488
		405			-
Total operating expenses		5,569			5,743
OPERATING (LOSS) INCOME		(1,721	)		(3,127	)
FINANCIAL EXPENSES (INCOME), NET		(869	)		(2,032	)
LOSS BEFORE INCOME TAX		(2,590	)		(5,159	)
INCOME TAX BENEFIT		-			-
NET LOSS FOR THE PERIOD		(2,590	)		(5,159	)
NET LOSS PER SHARE
Basic		(0.53	)		(1.54	)
Diluted		(0.53	)		(1.54	)
Weighted average number of ordinary shares used in computing basic net loss per share		4,858,923			3,347,449
Weighted average number of ordinary shares used in computing diluted net loss per share		4,858,923			3,347,449

The accompanying notes are an integral part of these interim consolidated financial statements.

4

SUPERCOM LTD

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

(U.S. dollars in thousands, except share data)

	Ordinary shares
	Number of Shares		Share capital		Additional paid-in capital		Accumulated deficit			Total shareholders' equity
Balance as of December 31, 2021		2,823,938		2,028		97,833		(95,469	)		4,392
Changes during the six months ended June 30, 2022 (unaudited):
Net loss		-		-		-		(5,159	)		(5,159	)
Exercise of options and debt conversion		54,385		39		172		-			211
Share Issuance		753,158		578		3,703		-			4,281
Balance as of June 30, 2022 (unaudited)		3,631,481		2,645		101,708		(100,628	)		3,725
Balance as of December 31, 2022		4,206,327		3,057		103,000		(102,926	)		3,131
Changes during the six months ended June 30, 2023 (unaudited):
Net loss		-		-		-		(2,590	)		(2,590	)
Exercise of options and debt conversion		440,517		301		424		-			725
Share Issuance		928,210		1,552		649		-			2,201
Balance as of June 30, 2023 (unaudited)		5,575,054		4,910		104,073		(105,516	)		3,467

The accompanying notes are an integral part of these interim consolidated financial statements.

5

SUPERCOM LTD

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOW

(U.S. dollars in thousands)

	Six months ended June 30
	2023			2022
	Unaudited			Unaudited
Cash flows from operating activities:
Net loss		(2,590	)		(5,159	)
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization		1,306			1,289
Increase in trade receivables, net		(1,579	)		(1,437	)
Increase in other accounts receivable and prepaid expenses		(114	)		(202	)
Increase (decrease) in inventories, net		352			(80	)
Decrease in trade payables		(793	)		(40	)
Decrease in employees and payroll accruals		(264	)		(317	)
Increase (decrease) in accrued severance pay		23			(31	)
Increase in long-term loan and other debt		809			-
Increase (decrease) in accrued expenses and other liabilities		(559	)		1,842
Net cash used in operating activities		(3,409	)		(4,134	)
Cash flows from investing activities:
Purchase of property and equipment		(1,041	)		(276	)
Decrease (Increase) in severance pay fund		(25	)		29
Capitalization of software development costs		(684	)		(572	)
Net cash provided by (used in) investing activities		(1,750	)		(819	)
Cash flows from financing activities:
Issuance of share capital, net of issuance costs		2,201			4,281
Long-term debt, net		-			-
Related parties		(26	)		(11	)
Net cash provided by (used in) financing activities		2,175			4,270
Increase (decrease) in cash, cash equivalents and restricted cash		(2,984	)		(683	)
Cash, cash equivalents and restricted cash at the beginning of the year		4,505			4,604
Cash, cash equivalents and restricted cash at the end of the period		1,521			3,921

The accompanying notes are an integral part of these interim consolidated financial statements.

6

SUPERCOM LTD

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1: GENERAL

a. SuperCom Ltd. (the “Company”) is an Israeli resident company organized in 1988 in Israel. On January 24, 2013, the Company changed its name back to SuperCom Ltd, its original name, from Vuance Ltd. On September 12, 2013, the Company’s ordinary shares were approved for listing on the NASDAQ Capital Market and began trading under the ticker symbol “SPCB” on September 17, 2013. Previously, the Company’s ordinary shares traded on the OTCQB® electronic quotation service.

The Company is a global provider of e-GOV, IoT, Communication and Cyber Security solutions to governments and organizations, both private and public, throughout the world; (i) IoT products and solutions reliably identify, track and monitor people or objects in real-time, enabling customers to detect unauthorized movement of people, vehicles and other monitored objects. The Company provides an all-in-one field-proven PureSecurity suite, accompanied by services specifically tailored to meet the requirements of an IoT customer; (ii) Proprietary e-Government platforms and innovative solutions for traditional and biometrics enrollment, personalization, issuance, and border control services, the Company have helped governments and national agencies design and issue secured multi-identification, or Multi-ID, documents and robust digital identity solutions to their citizens, visitors, and Lands; (iii) Solutions for carrier wi-fi, enterprise connectivityas well as its legacy backhaul services and products; (iv) Cutting edge endpoint data protection guarding against corporate data loss and theft through content discovery and inspection, encryption methodologies, and comprehensive device and port control, The Company maps sensitive information and controls data flow through email, web, external devices, and additional channels.

b. Liquidity Analysis

The Company has experienced net losses and significant cash outflows from cash used in operating activities over the past 3 years. As of six months ended June 30, 2023, the Company had an accumulated deficit of $105,516 and net cash used in operating activities of $3,409, compared to $4,134 for six months ended June 30, 2022.

Management has evaluated the significance of the conditions described above in relation to the Company’s ability to meet its obligations and noted that as of June 30, 2023, the Company had cash, cash equivalent, and restricted cash of $1,521 and positive working capital of $21,196.

Additionally, the Company secured financing of $20,000 during 2018, of which $6,000 remains available to the Company to draw during the 12 months following the balance sheet date, under certain conditions. Throughout 2021, the Company also secured through the issuance of multiple notes aggregate gross proceeds of $12,000 of subordinated debt.

On March 1, 2022, the Company raised $4.65 million in a registered direct offering with a single accredited institutional investor of an aggregate of 3,130,000 of its ordinary shares, and 4,401,585 pre-funded warrants to purchase ordinary shares with an exercise price of $0.00001 per share, and concurrent private placement to the Purchaser of the Company’s private warrants to purchase an aggregate of 5,648,689 or ordinary shares at an exercise price of $0.70 per share.

On July 27, 2022, the Company raised $1.74 million in a cash exercise of Company’s private warrants, as amended, of 5,648,689 of its ordinary shares at exercise price of $0.308, and concurrent private placement to the accredited institutional investor of the Company’s private warrants to purchase an aggregate of 5,648,689 or ordinary shares at an exercise price of $0.32 per share.

On March 31, 2023, the Company raised $2.4 million in a registered direct offering with a single accredited institutional investor through the sale of an aggregate of 485,000 of its ordinary shares, and 1,032,615 pre-funded warrants to purchase ordinary shares with an exercise price of $0.00001 per share, and concurrent private placement to such Purchaser of the Company’s private warrants to purchase an aggregate of 1,517,615 of its ordinary shares at an exercise price of $1.66 per share.

On July 31, 2023, the Company raised $2.75 million in a registered offering with a single accredited institutional investor through the sale of an aggregate of 661,000 of its ordinary shares, and 2,574,295 pre-funded warrants to purchase ordinary shares with an exercise price of $0.00001 per share, and concurrent issuance to such Purchaser of the Company’s warrants to purchase an aggregate of 3,235,295 of its ordinary shares at an exercise price of $0.85 per share.

To date, the Company has used the proceeds from the secured financing, subordinated debt, and private placement (i) to satisfy certain indebtedness; and (ii) for general corporate purposes, and (iii) for working capital needs for multiple new government customer contracts with significant positive cash flow.

Furthermore, the available $6 million secured credit facility from Fortress Investment Group may provide the Company with additional access to capital if needed.

The Company believes that based on the above-mentioned secured financings, management’s plans, significant cost savings, and expected cash streams from the Company’s current contracts with customers worldwide, it will be able to fund its operations for at least the next 12 months.

7

NOTE 1: GENERAL (Cont.)

c. Senior Secured Credit Facility

On September 6, 2018, and October 26, 2018, through a two-stage closing process, the Company entered into a Senior Secured Credit Facility with affiliates of Fortress Investment Group LLC("Fortress") with an aggregate principal amount of up to $20,000 (the "Credit Facility"). The Initial Term Loan, finalized on October 26, 2018 has an aggregate principal of $10,000, and the Incremental Term Loan provides up to an additional $10,000 in principal through Incremental Draws of at least $1,000 each. In 2019, a total of $4,000 gross was drawn on the Incremental Term Loan, and some of the terms of the Credit Facility were amended to support the company's needs. The Credit Facility is set to mature on September 6, 2021, and bears interest on the borrowed balance at a rate per annum equal to LIBOR plus an applicable margin (the "Interest Margin") dependent on the EBITDA Leverage Ratio, which is calculated and reset on a quarterly basis (8.0% for an EBITDA Leverage Ratio greater than or equal to 2.50x; 7.0% for an EBITDA Leverage Ratio less than 2.50x). At the Company's election, interest is paid in cash or in-kind in the amount of 4% per annum of the Interest Margin. The balance of interest is payable in cash monthly in arrears. For amounts that remain un-borrowed, the Company incurs interest at a rate of 0.50% per annum ("Unused Fee"). From closing until today, the Company only paid monthly interest payments. The Company expects to start making partial monthly amortization payments towards the principal balance, with the majority of the principal to be paid via a bullet payment at the maturity date, expected to be in December 2024.

The Credit Facility is subject to an original issue discount equal to 2.5% of any drawn amounts, and amounts repaid cannot be re-borrowed. At maturity, an end-of-term fee of 2.25% to 4.5% is owed by the Company for any amounts drawn. In connection with securing the Credit Facility, the Company incurred legal and due diligence fees, which are recorded together with the original issue discount and end-of-term fee, and amortized into interest expense over the life of the Credit Facility.

In connection with the Credit Facility, the Investor received 25,000 warrants initially and an additional 75,000 warrants for amendments (the “Credit Facility Warrants”) and purchased 106,705 unregistered common shares at a share price of $1.87 from Company at a total of $200. The Credit Facility Warrants mature 7 years from the date of issuance, were set to be issued at a strike price at a premium to the then current market price.

In 2021, the Company secured through the issuance of an additional subordinated notes, gross proceeds of $12,000. For the consideration of $12,000 in gross proceeds, SuperCom issued a two-year unsecured, subordinated promissory note to a certain institutional investor, one in February 2021 and the other in June 2021, both with similar structures and terms. The notes have a 5% annual coupon and a built-in increase to the balance of the notes by 5% every 6 months, for any portion of the notes which has not been paid down prior to maturity. All principal and interest accrued is required to be paid in only one-bullet payment at maturity, and the company has the right to pre-pay any portion of either note at any time without a pre-payment penalty. The company has an option at its discretion only, at any time after 12 months to pay down all or a portion of either note using its ordinary shares, subject to certain conditions being met.

 As of June 30, 2023, the outstanding principal, including accrued interest, of the Credit Facility and the aggregate balance for these Subordinated Debt was $32,909.

The Company purchases certain services and products used by it to generate revenues in its projects and sales from several sole suppliers. Although there are only a limited number of manufacturers of those particular services and products, management believe that other suppliers could provide similar services and products on comparable terms without affecting operating results.

8

NOTE 2: UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Financial Statement preparation

These unaudited interim consolidated financial statements of the Company and its subsidiaries (collectively referred to in its report as "Company"), as of June 30, 2023 and for the six months then ended have been prepared, in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). They do not include all information and notes required by U.S. GAAP in the preparation of annual consolidated financial statements.

The accounting policies used in the preparation of the unaudited interim consolidated financial statements is the same as those described in the Company's audited consolidated financial statements prepared in accordance with U.S. GAAP for the year ended December 31, 2022.

The Company makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated interim Financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates.

The Company believes all adjustments necessary for a fair statement of the results for the period presented have been made, and all such adjustments were of a normal recurring nature unless otherwise disclosed. The financial results for the period are not necessarily indicative of financial results for the full year.

These financial statements should be read in conjunction with the Company's consolidated financial statements for the year ended December 31, 2021, and the accompanying notes. There have been no changes in the significant accounting policies from those disclosed in the audited consolidated financial statements for the fiscal year ended December 31, 2021included in the 2021 Form 20-F.

NOTE 3: INVENTORIES, NET

	June 30,		December 31,
	2023		2022
	$		$
Raw materials, parts and supplies		1,667		1,726
Finished products		1,392		1,685
		3,059		3,411

As of June 30, 2023 and December 31, 2022, inventory is presented net of write-offs for slow inventory in the amount of approximately $2,215 and $2,215 , respectively.

NOTE 4: OTHER INTANGIBLE ASSETS, NET

	June 30,		December 31,
	2023		2022
	$		$
Customer relationship & Other		532		622
IP & Technology		1,878		2,121
Capitalized software development costs		3,094		2,874
		5,504		5,617

NOTE 5: COMMITMENTS AND CONTINGENT LIABILITIES – LITIGIATION

We are party to legal proceedings in the normal course of our business. There are no material pending legal proceedings to which we are a party or of which our property is subject. Although the outcome of claims and lawsuits against us cannot be accurately predicted, we do not believe that any of the claims and lawsuits, will have a material adverse effect on our business, financial condition, results of operations or cash flows for any quarterly or annual period.

9

EX-99

Exhibit 2

MANAGEMENT’S DISCUSSION AND ANALYSIS OF RESULTS OPERATIONS

The following discussion and analysis should be read together with our unaudited consolidated financial statements and the related notes as of June 30, 2023, which appear elsewhere in this report.

Cautionary Note Regarding Forward-Looking Statements

The discussion and analysis in this section contain “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, with respect to our business, financial condition and results of operations. Such forward-looking statements reflect our current views with respect to future events and financial results. Words such as “may,” “should,” “could,” “would,” “predicts,” “potential,” “continue,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” and similar expressions, as well as statements in future tense, identify forward-looking statements. These include statements regarding our earnings, projected growth and forecasts, and similar matters which are not historical facts. We remind readers that forward-looking statements are merely predictions and therefore are inherently subject to uncertainties and other factors which could cause the actual future events or results to differ materially from those described in the forward-looking statements. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: (i) inability to realize benefits from acquisitions, (ii) our inability to manage our growth profitably, (iii) intense competition in our industry, (iv) acquisition of businesses disrupting our business and harming our financial condition and operations, (v) the need to obtain additional financing , (vi) our ability to respond promptly and effectively to market changes, (vii) our ability to obtain and maintain contracts with governments, (viii) our dependence on third-party representatives to generate revenues and supply components, (ix) unfavorable global economic conditions, (x) developments affecting international operations and foreign markets, (xi) breaches of network or information technology security, (xii) intellectual property litigation, and (xiii) such other factors discussed throughout Item 3. D. Risk Factors of our Annual Report on Form 20-F for the year ended December 31, 2022. Any forward-looking statement made by us in this section is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

Overview

Founded in 1988, we are a global provider of traditional and digital identity solutions, advanced IoT, and cyber security products and solutions to governments and private and public organizations worldwide.

We are comprised of three main Strategic Business Units(SBU): e-Gov, IoT and Connectivity (or “IoT”), and Cyber Security:

e-Gov

Through our proprietary e-Government platforms and innovative solutions for traditional and biometrics enrollment, personalization, issuance, and border control services, we have helped governments and national agencies design and issue secured multi-identification, or Multi-ID, documents and robust digital identity solutions to their citizens, visitors, and Lands.

We have focused on expanding our activities in the traditional identification, or ID, and electronic identification, or e-Gov, market, including the design, development, and marketing of identification technologies and solutions to governments in Europe, Asia, America, and Africa using our e-Government platforms. Our activities include: (i) utilizing paper secured by different levels of security patterns (UV, holograms, etc.); and (ii) electronic identification secured by biometric data, principally in connection with the issuance of national Multi-ID documents (IDs, passports, driver’s licenses, vehicle permits, and visas, Secure Land Certificated) border control applications and Land Information System (LIS).

On December 26, 2013, we acquired the SmartID division of On Track Innovations Ltd., or OTI, including all contracts, software, other related technologies, and intellectual property, or IP, assets. The SmartID division has a strong international presence, with a broad range of competitive and well-known e-Gov solutions and technology. The acquisition significantly expanded the breadth of our e-Gov capabilities globally, while providing us with outstanding market and technological experts, together with leading ID software platforms and technologies.

IoT and Connectivity

IoT

Our IoT products and solutions reliably identify, track and monitor people or objects in real-time, enabling our customers to detect unauthorized movement of people, vehicles, and other monitored objects. We provide an all-in-one field-proven IoT suite, accompanied by services specifically tailored to meet the requirements of IoT solutions.  Our proprietary IoT suite of hybrid hardware, connectivity and software components is the foundation of these solutions and services. Our IoT division has primarily focused on growing the following markets: (i) public safety, (ii) healthcare and homecare, (iii) Smart Cities, (iv) Smart Campus, and (iv) transportation.

During 2006, we identified the growing electronic tracking and monitoring vertical markets for public safety, real time healthcare and homecare, and transportation management. We have developed the PureRF Hybrid suit of wrist devices, connectivity, and controlling software, from 2012 we have developed the next generation IoT suite of devices, connectivity and Monitoring software; the PureSecurity Hybrid Suite of wrist band, tags, beacons, PureCom, Pure Monitors, PureTrack and other components.

On January 1, 2016, we acquired Leaders in Community Alternatives, Inc., or LCA. LCA is a California-based, private criminal justice organization providing community-based services and electronic monitoring programs to government agencies in the U.S. for more than 25 years. LCA offers a broad range of competitive solutions for governmental institutions across the U.S. in addressing realignment strategies and plans.

Connectivity

In 2016, as part of our strategy to enhance and broaden our IoT connectivity products and solutions offerings for public safety, enterprises, hospitality, and smart cities markets, on May 18, 2016, we acquired Alvarion Technologies Ltd. or Alvarion. Alvarion designs solutions for carrier wi-fi, enterprise connectivity, smart city, smart hospitality, connected campuses, and connected events that are both complete and heterogeneous to ensure ease of use and optimize operational efficiency. Carriers, local governments and hospitality sectors worldwide deploy Alvarion’s intelligent wi-fi networks to enhance productivity and performance, as well as its legacy backhaul services and products.

2

Cyber Security

During 2015, we identified the cyber security market as a very fast-growing market where we believe that SuperCom has major advantages due to synergic technologies and shared customer base to our e-Gov, IoT, and connectivity SBUs. In 2015, we acquired Prevision Ltd., or Prevision, a company with a strong presence in the market and a broad range of competitive and well-known cyber security services. During the first quarter of 2016, we acquired Safend Ltd, or Safend, an international provider of cutting-edge endpoint data protection guarding against corporate data loss and theft through content discovery and inspection, encryption methodologies, and comprehensive device and port control. Safend maps sensitive information and controls data flow through email, web, external devices, and additional channels.

Both acquisitions significantly expanded the breadth of our cyber security capabilities globally while providing us with outstanding market and technological experts and over 3,000 customers in the United States, Europe, and Asia, and more than three million software license seats deployed by multinational enterprises, government agencies and small to mid-size companies around the globe, together with leading data and cyber security platforms and technologies.

General

Our consolidated financial statements appearing in this report are prepared in U.S. dollars and in accordance with generally accepted accounting principles in the United States, or U.S. GAAP. Transactions and balances originally denominated in dollars are presented at their original amounts. Transactions and balances in other currencies are re-measured into dollars in accordance with the principles set forth in Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC, Topic 830, “Foreign Currency Translation.” The majority of our sales are made outside Israel in U.S. dollars. In addition, substantial portions of our costs are incurred in U.S. dollars. Since the U.S. dollar is the primary currency of the economic environment in which we and certain of our subsidiaries operate, the U.S. dollar is our functional and reporting currency and, accordingly, monetary accounts maintained in currencies other than the U.S. dollar are re-measured using the foreign exchange rate at the balance sheet date. Operational accounts and non-monetary balance sheet accounts are measured and recorded at the exchange rate in effect at the date of the transaction. The financial statements of certain subsidiaries, whose functional currency is not the U.S. dollar, have been translated into U.S. dollars. All balance sheet accounts have been translated using the exchange rates in effect at the balance sheet date. Statement of operations amounts have been translated using the average exchange rate for the period. The resulting translation adjustments are reported as a component of shareholders’ equity in accumulated other comprehensive income (loss).

3

Results of Operations

Revenues

Our revenues for the six months ended June 30, 2023, increased by $7.9 million, or 125%, to $14.1 million compared to $6.3 million for the six months ended June 30, 2022. This increase in revenue was primary due to implementation of new multi years IoT contracts in Europe amounted to $7.2 million.

Cost of Sales

Our cost of sales increased in the first six months of 2023 to $10.2 million from $3.6 million in the first six months of 2022, an increase of 182%. This increase in cost of sales was primary due to the large increase in revenue of $7.9 million.

Gross Margin

Our gross margin decreased in the first six months of 2023 to 27.2% compared to 41.8% in the first half of 2022.

The decrease in gross marginwas primary due to the change in revenue mix, mainly due to implementation stage of new IoT contract in Europe representing lower gross margin.

Expenses

Our operating expenses decreased in the first six months of 2023 to $5.5 million, or by 3%, from $5.7 million in the first six months of 2022. This increase in operating expenses in the first half of 2023 was primarily due to (i) decrease of $0.1 million in research and development expenses, (ii) decrease of $0.3 million in sales and marketing expenses, (iii) decrease of $0.1 million in general and administration expenses, (iv) an increase of $0.4 million in other expenses.

Financial Expenses, net

We had financial expenses of $869 thousands in the first half of 2023 compared to a financial income of $2,032 thousands in the first half of 2022. The decrease in financial expenses was due to (i) changes in the exchange rate of the NIS against the U.S. dollar in 2023 compared to 2022, (ii) an interest fee on loans and credit lines, and (iii) bank fees related to guarantees issued to our customers.

Income Tax Benefit

We recorded an income tax expense in the amount of $0 during the first half of the year 2023, compared to an income tax expense in the amount of $0 thousand during the first half of the year 2022.

Net Loss

As a result of the changes in our operational expenses, financial expense that we recorded in the first half of 2023, as described above, our net loss in the first half of 2023 was $2,590 thousand compared to a net loss of $5,159 thousands in the first half of 2022.

4

XML

Document And Entity Information	6 Months Ended
	Jun. 30, 2023
Cover [Abstract]
Document Type	6-K
Amendment Flag	false
Document Period End Date	Jun. 30, 2023
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Entity Registrant Name	SUPERCOM LTD.
Entity Central Index Key	0001291855
Current Fiscal Year End Date	--12-31

XML

CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
CURRENT ASSETS
Cash and cash equivalents	$ 1,139	$ 4,042
Restricted bank deposits	382	463
Trade receivable, net	12,431	10,852
Other accounts receivable and prepaid expenses	2,353	2,239
Inventories, net	3,059	3,411
Patents	5,283	5,283
Total current assets	24,647	26,290
LONG-TERM ASSETS
Severance pay funds	458	482
Deferred tax long term	501	501
Property and equipment, net	2,397	1,640
Other Intangible assets, net	5,504	5,617
Goodwill	7,026	7,026
Operating lease right-of-use asset	260	484
Total non-current assets	16,146	15,750
TOTAL ASSETS	40,793	42,040
CURRENT LIABILITIES
Trade payables	474	1,267
Employees and payroll accruals	1,075	1,339
Related parties	142	168
Accrued expenses and other liabilities	283	469
Deferred revenue	507	715
Short-term loan and other	970	1,281
Total current liabilities	3,451	5,239
LONG-TERM LIABILITIES
Long-term loan	32,909	32,600
Deferred revenue	299	269
Deferred tax liability LT	170	170
Accrued severance pay	497	523
Operating lease liabilities	0	108
Total non-current liabilities	33,875	33,670
SHAREHOLDERS' EQUITY:
Ordinary shares	4,910	3,057
Additional paid-in capital	104,073	103,000
Accumulated deficit	(105,516)	(102,926)
Total shareholders' equity	3,467	3,131
Total Liabilities and Shareholders' Equity	$ 40,793	$ 42,040

XML

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Income Statement [Abstract]
REVENUES	$ 14,124	$ 6,264
COST OF REVENUES	10,276	3,648
GROSS PROFIT	3,848	2,616
OPERATING EXPENSES
Research and development, net	1,662	1,792
Sales and marketing	1,128	1,463
General and administration	2,374	2,488
Other operating expenses	405	0
Total operating expenses	5,569	5,743
OPERATING (LOSS) INCOME	(1,721)	(3,127)
FINANCIAL EXPENSES (INCOME), NET	(869)	(2,032)
LOSS BEFORE INCOME TAX	(2,590)	(5,159)
INCOME TAX BENEFIT	0	0
NET LOSS FOR THE PERIOD	$ (2,590)	$ (5,159)
NET LOSS PER SHARE
Basic	$ (0.53)	$ (1.54)
Diluted	$ (0.53)	$ (1.54)
Weighted average number of ordinary shares used in computing basic net loss per share	4,858,923	3,347,449
Weighted average number of ordinary shares used in computing diluted net loss per share	4,858,923	3,347,449

XML

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Ordinary shares [Member]	Additional paid-in capital [Member]	Accumulated deficit [Member]	Total
Balance at Dec. 31, 2021	$ 2,028	$ 97,833	$ (95,469)	$ 4,392
Balance (in shares) at Dec. 31, 2021	2,823,938
Net loss	$ 0	0	(5,159)	(5,159)
Exercise of options and debt conversion	$ 39	172	0	211
Exercise of options and debt conversion (in shares)	54,385
Share Issuance	$ 578	3,703	0	4,281
Share Issuance (in shares)	753,158
Balance at Jun. 30, 2022	$ 2,645	101,708	(100,628)	3,725
Balance (in shares) at Jun. 30, 2022	3,631,481
Balance at Dec. 31, 2022	$ 3,057	103,000	(102,926)	3,131
Balance (in shares) at Dec. 31, 2022	4,206,327
Net loss	$ 0	0	(2,590)	(2,590)
Exercise of options and debt conversion	$ 301	424	0	725
Exercise of options and debt conversion (in shares)	440,517
Share Issuance	$ 1,552	649	0	2,201
Share Issuance (in shares)	928,210
Balance at Jun. 30, 2023	$ 4,910	$ 104,073	$ (105,516)	$ 3,467
Balance (in shares) at Jun. 30, 2023	5,575,054

XML

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOW - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash flows from operating activities:
Net loss	$ (2,590)	$ (5,159)
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	1,306	1,289
Increase in trade receivables, net	(1,579)	(1,437)
Increase in other accounts receivable and prepaid expenses	(114)	(202)
Increase (decrease) in inventories, net	352	(80)
Decrease in trade payables	(793)	(40)
Decrease in employees and payroll accruals	(264)	(317)
Increase (decrease) in accrued severance pay	23	(31)
Increase in long-term loan and other debt	809	0
Increase (decrease) in accrued expenses and other liabilities	(559)	1,842
Net cash used in operating activities	(3,409)	(4,134)
Cash flows from investing activities:
Purchase of property and equipment	(1,041)	(276)
Decrease (Increase) in severance pay fund	(25)	29
Capitalization of software development costs	(684)	(572)
Net cash provided by (used in) investing activities	(1,750)	(819)
Cash flows from financing activities:
Issuance of share capital, net of issuance costs	2,201	4,281
Long-term debt, net	0	0
Related parties	(26)	(11)
Net cash provided by (used in) financing activities	2,175	4,270
Increase (decrease) in cash, cash equivalents and restricted cash	(2,984)	(683)
Cash, cash equivalents and restricted cash at the beginning of the year	4,505	4,604
Cash, cash equivalents and restricted cash at the end of the period	$ 1,521	$ 3,921

XML

GENERAL

6 Months Ended

Jun. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

GENERAL

NOTE 1: GENERAL

a. SuperCom Ltd. (the “Company”) is an Israeli resident company organized in 1988 in Israel. On January 24, 2013, the Company changed its name back to SuperCom Ltd, its original name, from Vuance Ltd. On September 12, 2013, the Company’s ordinary shares were approved for listing on the NASDAQ Capital Market and began trading under the ticker symbol “SPCB” on September 17, 2013. Previously, the Company’s ordinary shares traded on the OTCQB® electronic quotation service.

The Company is a global provider of e-GOV, IoT, Communication and Cyber Security solutions to governments and organizations, both private and public, throughout the world; (i) IoT products and solutions reliably identify, track and monitor people or objects in real-time, enabling customers to detect unauthorized movement of people, vehicles and other monitored objects. The Company provides an all-in-one field-proven PureSecurity suite, accompanied by services specifically tailored to meet the requirements of an IoT customer; (ii) Proprietary e-Government platforms and innovative solutions for traditional and biometrics enrollment, personalization, issuance, and border control services, the Company have helped governments and national agencies design and issue secured multi-identification, or Multi-ID, documents and robust digital identity solutions to their citizens, visitors, and Lands; (iii) Solutions for carrier wi-fi, enterprise connectivityas well as its legacy backhaul services and products; (iv) Cutting edge endpoint data protection guarding against corporate data loss and theft through content discovery and inspection, encryption methodologies, and comprehensive device and port control, The Company maps sensitive information and controls data flow through email, web, external devices, and additional channels.

b. Liquidity Analysis

The Company has experienced net losses and significant cash outflows from cash used in operating activities over the past 3 years. As of six months ended June 30, 2023, the Company had an accumulated deficit of $105,516 and net cash used in operating activities of $3,409, compared to $4,134 for six months ended June 30, 2022.

Management has evaluated the significance of the conditions described above in relation to the Company’s ability to meet its obligations and noted that as of June 30, 2023, the Company had cash, cash equivalent, and restricted cash of $1,521 and positive working capital of $21,196.

Additionally, the Company secured financing of $20,000 during 2018, of which $6,000 remains available to the Company to draw during the 12 months following the balance sheet date, under certain conditions. Throughout 2021, the Company also secured through the issuance of multiple notes aggregate gross proceeds of $12,000 of subordinated debt.

On March 1, 2022, the Company raised $4.65 million in a registered direct offering with a single accredited institutional investor of an aggregate of 3,130,000 of its ordinary shares, and 4,401,585 pre-funded warrants to purchase ordinary shares with an exercise price of $0.00001 per share, and concurrent private placement to the Purchaser of the Company’s private warrants to purchase an aggregate of 5,648,689 or ordinary shares at an exercise price of $0.70 per share.

On July 27, 2022, the Company raised $1.74 million in a cash exercise of Company’s private warrants, as amended, of 5,648,689 of its ordinary shares at exercise price of $0.308, and concurrent private placement to the accredited institutional investor of the Company’s private warrants to purchase an aggregate of 5,648,689 or ordinary shares at an exercise price of $0.32 per share.

On March 31, 2023, the Company raised $2.4 million in a registered direct offering with a single accredited institutional investor through the sale of an aggregate of 485,000 of its ordinary shares, and 1,032,615 pre-funded warrants to purchase ordinary shares with an exercise price of $0.00001 per share, and concurrent private placement to such Purchaser of the Company’s private warrants to purchase an aggregate of 1,517,615 of its ordinary shares at an exercise price of $1.66 per share.

On July 31, 2023, the Company raised $2.75 million in a registered offering with a single accredited institutional investor through the sale of an aggregate of 661,000 of its ordinary shares, and 2,574,295 pre-funded warrants to purchase ordinary shares with an exercise price of $0.00001 per share, and concurrent issuance to such Purchaser of the Company’s warrants to purchase an aggregate of 3,235,295 of its ordinary shares at an exercise price of $0.85 per share.

To date, the Company has used the proceeds from the secured financing, subordinated debt, and private placement (i) to satisfy certain indebtedness; and (ii) for general corporate purposes, and (iii) for working capital needs for multiple new government customer contracts with significant positive cash flow.

Furthermore, the available $6 million secured credit facility from Fortress Investment Group may provide the Company with additional access to capital if needed.

The Company believes that based on the above-mentioned secured financings, management’s plans, significant cost savings, and expected cash streams from the Company’s current contracts with customers worldwide, it will be able to fund its operations for at least the next 12 months.

c. Senior Secured Credit Facility

On September 6, 2018, and October 26, 2018, through a two-stage closing process, the Company entered into a Senior Secured Credit Facility with affiliates of Fortress Investment Group LLC("Fortress") with an aggregate principal amount of up to $20,000 (the "Credit Facility"). The Initial Term Loan, finalized on October 26, 2018 has an aggregate principal of $10,000, and the Incremental Term Loan provides up to an additional $10,000 in principal through Incremental Draws of at least $1,000 each. In 2019, a total of $4,000 gross was drawn on the Incremental Term Loan, and some of the terms of the Credit Facility were amended to support the company's needs. The Credit Facility is set to mature on September 6, 2021, and bears interest on the borrowed balance at a rate per annum equal to LIBOR plus an applicable margin (the "Interest Margin") dependent on the EBITDA Leverage Ratio, which is calculated and reset on a quarterly basis (8.0% for an EBITDA Leverage Ratio greater than or equal to 2.50x; 7.0% for an EBITDA Leverage Ratio less than 2.50x). At the Company's election, interest is paid in cash or in-kind in the amount of 4% per annum of the Interest Margin. The balance of interest is payable in cash monthly in arrears. For amounts that remain un-borrowed, the Company incurs interest at a rate of 0.50% per annum ("Unused Fee"). From closing until today, the Company only paid monthly interest payments. The Company expects to start making partial monthly amortization payments towards the principal balance, with the majority of the principal to be paid via a bullet payment at the maturity date, expected to be in December 2024.

The Credit Facility is subject to an original issue discount equal to 2.5% of any drawn amounts, and amounts repaid cannot be re-borrowed. At maturity, an end-of-term fee of 2.25% to 4.5% is owed by the Company for any amounts drawn. In connection with securing the Credit Facility, the Company incurred legal and due diligence fees, which are recorded together with the original issue discount and end-of-term fee, and amortized into interest expense over the life of the Credit Facility.

In connection with the Credit Facility, the Investor received 25,000 warrants initially and an additional 75,000 warrants for amendments (the “Credit Facility Warrants”) and purchased 106,705 unregistered common shares at a share price of $1.87 from Company at a total of $200. The Credit Facility Warrants mature 7 years from the date of issuance, were set to be issued at a strike price at a premium to the then current market price.

In 2021, the Company secured through the issuance of an additional subordinated notes, gross proceeds of $12,000. For the consideration of $12,000 in gross proceeds, SuperCom issued a two-year unsecured, subordinated promissory note to a certain institutional investor, one in February 2021 and the other in June 2021, both with similar structures and terms. The notes have a 5% annual coupon and a built-in increase to the balance of the notes by 5% every 6 months, for any portion of the notes which has not been paid down prior to maturity. All principal and interest accrued is required to be paid in only one-bullet payment at maturity, and the company has the right to pre-pay any portion of either note at any time without a pre-payment penalty. The company has an option at its discretion only, at any time after 12 months to pay down all or a portion of either note using its ordinary shares, subject to certain conditions being met.

 As of June 30, 2023, the outstanding principal, including accrued interest, of the Credit Facility and the aggregate balance for these Subordinated Debt was $32,909.

The Company purchases certain services and products used by it to generate revenues in its projects and sales from several sole suppliers. Although there are only a limited number of manufacturers of those particular services and products, management believe that other suppliers could provide similar services and products on comparable terms without affecting operating results.

XML

UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

6 Months Ended

Jun. 30, 2023

Condensed Financial Statements [Abstract]

UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 2: UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Financial Statement preparation

These unaudited interim consolidated financial statements of the Company and its subsidiaries (collectively referred to in its report as "Company"), as of June 30, 2023 and for the six months then ended have been prepared, in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). They do not include all information and notes required by U.S. GAAP in the preparation of annual consolidated financial statements.

The accounting policies used in the preparation of the unaudited interim consolidated financial statements is the same as those described in the Company's audited consolidated financial statements prepared in accordance with U.S. GAAP for the year ended December 31, 2022.

The Company makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated interim Financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates.

The Company believes all adjustments necessary for a fair statement of the results for the period presented have been made, and all such adjustments were of a normal recurring nature unless otherwise disclosed. The financial results for the period are not necessarily indicative of financial results for the full year.

These financial statements should be read in conjunction with the Company's consolidated financial statements for the year ended December 31, 2021, and the accompanying notes. There have been no changes in the significant accounting policies from those disclosed in the audited consolidated financial statements for the fiscal year ended December 31, 2021included in the 2021 Form 20-F.

XML

INVENTORIES, NET

6 Months Ended

Jun. 30, 2023

Inventory Disclosure [Abstract]

INVENTORIES, NET

NOTE 3: INVENTORIES, NET

	June 30,		December 31,
	2023		2022
	$		$
Raw materials, parts and supplies		1,667		1,726
Finished products		1,392		1,685
		3,059		3,411

As of June 30, 2023 and December 31, 2022, inventory is presented net of write-offs for slow inventory in the amount of approximately $2,215 and $2,215 , respectively.

XML

OTHER INTANGIBLE ASSETS, NET

6 Months Ended

Jun. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

OTHER INTANGIBLE ASSETS, NET

NOTE 4: OTHER INTANGIBLE ASSETS, NET

	June 30,		December 31,
	2023		2022
	$		$
Customer relationship & Other		532		622
IP & Technology		1,878		2,121
Capitalized software development costs		3,094		2,874
		5,504		5,617

XML

COMMITMENTS AND CONTINGENT LIABILITIES - LITIGIATION

6 Months Ended

Jun. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENT LIABILITIES - LITIGIATION

NOTE 5: COMMITMENTS AND CONTINGENT LIABILITIES – LITIGIATION

We are party to legal proceedings in the normal course of our business. There are no material pending legal proceedings to which we are a party or of which our property is subject. Although the outcome of claims and lawsuits against us cannot be accurately predicted, we do not believe that any of the claims and lawsuits, will have a material adverse effect on our business, financial condition, results of operations or cash flows for any quarterly or annual period.

XML

INVENTORIES, NET (Tables)

6 Months Ended

Jun. 30, 2023

Inventory Disclosure [Abstract]

Schedule of inventory, net

	June 30,		December 31,
	2023		2022
	$		$
Raw materials, parts and supplies		1,667		1,726
Finished products		1,392		1,685
		3,059		3,411

XML

OTHER INTANGIBLE ASSETS, NET (Tables)

6 Months Ended

Jun. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of other intangible assets, net

	June 30,		December 31,
	2023		2022
	$		$
Customer relationship & Other		532		622
IP & Technology		1,878		2,121
Capitalized software development costs		3,094		2,874
		5,504		5,617

XML

GENERAL (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands		1 Months Ended			6 Months Ended
	Mar. 01, 2022	Jul. 31, 2023	Mar. 31, 2023	Jul. 27, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2018
Accumulated deficit					$ 105,516		$ 102,926
Net cash used in operating activities					3,409	$ 4,134
Cash, cash equivalents and restricted cash					1,521	$ 3,921	$ 4,505	$ 4,604
Net working capital					21,196
Amount of secured credit facility									$ 20,000
Remaining available secured financing									$ 6,000
Gross proceeds of subordinated debt					12,000
Registered direct offering [Member]
Proceeds from direct offering	$ 4,650
Proceeds from private warrants exercise			$ 2,400
Number of ordinary shares issued	3,130,000		485,000
Number of warrants to purchase ordinary shares	4,401,585		1,032,615
Exercise price of warrants	$ 0.00001		$ 0.00001
Private placement [Member]
Proceeds from private warrants exercise		$ 2,750		$ 1,740
Number of ordinary shares issued	5,648,689	661,000	1,517,615	5,648,689
Number of warrants to purchase ordinary shares		2,574,295
Exercise price of warrants	$ 0.7	$ 0.00001	$ 1.66	$ 0.308
Fortress Investment Group [Member]
Amount of secured credit facility					$ 6,000
Accredited Institutional Investor [Member] | Private placement [Member]
Number of ordinary shares issued		3,235,295		5,648,689
Exercise price of warrants		$ 0.85		$ 0.32

XML

GENERAL - Senior Secured Credit Facility (Narrative) (Details) $ / shares in Units, $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2023 USD ($) $ / shares shares	Dec. 31, 2021 USD ($)	Dec. 31, 2019 USD ($)	Oct. 26, 2018 USD ($)
Line of Credit Facility [Line Items]
Gross proceeds of subordinated debt	$ 12,000
Subordinated Debt [Member] | Certain Institutional Investor [Member]
Line of Credit Facility [Line Items]
Gross proceeds of subordinated debt		$ 12,000
Subordinated promissory note term		2 years
Annual coupon rate of subordinated notes		5.00%
Built-in increase in interest rate		5.00%
Credit Facility [Member]
Line of Credit Facility [Line Items]
Interest rate to be paid per annum in cash or in kind	4.00%
Unused fee (as a percent)	0.50%
Original issue discount (as a percent)	2.50%
Initial warrants received by investor | shares	25,000
Additional warrants | shares	75,000
Unregistered common shares issued | shares	106,705
Value of unregistered common shares issued	$ 200
Share price | $ / shares	$ 1.87
Credit facility warrants, maturity term	7 years
Credit Facility [Member] | Subordinated Debt [Member]
Line of Credit Facility [Line Items]
Subordinated Debt	$ 32,909
Credit Facility [Member] | Minimum [Member]
Line of Credit Facility [Line Items]
Term fee (as a percent)	2.25%
Credit Facility [Member] | Maximum [Member]
Line of Credit Facility [Line Items]
Term fee (as a percent)	4.50%
Credit Facility [Member] | Ebitda Leverage Ratio Greater Than Or Equal To 2.50 Times [Member]
Line of Credit Facility [Line Items]
Interest margin	8.00%
EBITDA leverage ratio	2.5
Credit Facility [Member] | EBITDA Leverage Ratio Less Tan 2.50x [Member]
Line of Credit Facility [Line Items]
Interest margin	7.00%
EBITDA leverage ratio	2.5
Credit Facility [Member] | Fortress [Member]
Line of Credit Facility [Line Items]
Aggregate principal amount				$ 20,000
Current borrowing capacity				1,000
Gross draw down amount			$ 4,000
Initial Term Loan [Member] | Fortress [Member]
Line of Credit Facility [Line Items]
Current borrowing capacity				10,000
Incremental Term Loan [Member] | Fortress [Member]
Line of Credit Facility [Line Items]
Current borrowing capacity				$ 10,000

XML

INVENTORIES, NET (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Raw materials, parts and supplies	$ 1,667	$ 1,726
Finished products	1,392	1,685
Inventories, net	3,059	3,411
Valuation adjustment for slow inventory	$ 2,215	$ 2,215

XML

OTHER INTANGIBLE ASSETS, NET (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Other intangible assets, including operating lease right-of-use asset	$ 5,504	$ 5,617
Customer relationship & Other [Member]
Other intangible assets, including operating lease right-of-use asset	532	622
IP & Technology [Member]
Other intangible assets, including operating lease right-of-use asset	1,878	2,121
Capitalized software development costs [Member]
Other intangible assets, including operating lease right-of-use asset	$ 3,094	$ 2,874