SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION

6 Months Ended

Dec. 31, 2013

SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION [Abstract]

SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION

NOTE 11 - SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION

Balance sheets:

a. Accounts receivable:

	6 month period ended			Year Ended June 30,
	December 31, 2013			2013			2012
	($ in thousands)
1)   Trade:
Open accounts	$	2,260		$	2,068		$	2,039
Allowance for doubtful accounts		(405	)		(329	)		(215	)
	$	1,855		$	1,739		$	1,824
2)   Other:
Due from government institutions	$	221		$	176		$	124
Advance payments to suppliers		152			202			118
Miscellaneous		14			10			22
	$	387		$	388		$	264

The changes in "Allowance for doubtful accounts" during the six month period ended December 31, 2013, as well as the years ended June 30, 2013 and 2012 are as follows:

	6 month period ended		Year ended June 30,
	December 31, 2013		2013			2012
	($ in thousands)
Balance at beginning of period	$	329	$	215		$	155
Additions during the period		58		245			78
Deductions during the period				(142	)
Exchange rate differences		18		11			(18	)
Balance at end of period	$	405	$	329		$	215

b. Inventories:

	6 month period ended		Year ended June 30,
	December 31, 2013		2013		2012
	($ in thousands)
Finished goods	$	1,097	$	364	$	479
Work in process		341		1,111		1,115
Raw materials and supplies		155		118		150
	$	1,593	$	1,593	$	1,744

As of December 31, 2013, as well as June 30, 2013 and 2012 the Company recorded provisions for slow moving inventory in the amounts of $418,000, $379,000 and $443,000, respectively.

c. Inventory on consignment

The changes in inventory on consignment during the six month period ended December 31, 2013, as well as the years ended June 30, 2013 and 2012 are as follows:

	6 month period ended,		Year ended June 30,
	December 31, 2013		2013			2012
	($ in thousands)
Balance at beginning of period	$	-	$	63		$	82
Costs of revenues deferred during the period				20			63
Costs of revenues recognized during the period				(83	)		(82	)
Balance at end of period	$	-	$	-		$	63

As of June 30, 2012, inventory on consignment included products of sales for which returns were reliably estimated in the amount of approximately $63,000. As of December 31, 2013 and June 30, 2013, there was no inventory on consignment.

d. Accounts payable and accruals-other:

	6 month period ended		Year ended June 30,
	December 31, 2013		2013		2012
	($ in thousands)
Employees and employee institutions	$	1,133	$	626	$	438
Accrued vacation and recreation pay		325		313		272
Accrued clinical trials expenses		622		513		607
Provision for sales commissions		139		205		194
Accrued expenses		886		1,343		1,197
Due to government institutions		7		15		22
Provision for returns						139
Taxes payable		29		13		56
	$	3,141	$	3,028	$	2,925

Statements of Operation:

f. Financial expenses, net:

	6 month period ended			Year ended June 30,
	December 31, 2013			2013			2012
	($ in thousands)
Bank commissions	$	27		$	38		$	50
Interest income		(2	)		(28	)		(40	)
Exchange rate differences		1			(63	)		112
Induced conversion of convertible debt					9,330
Issuance of warrants					568
Interest expense (including debt issuance costs)		273			4,268			1,238
Change in fair value of warrants, embedded derivatives and anti-dilution rights		200			64			(1,322	)
	$	499		$	14,177		$	38