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FACTORING OF RECEIVABLES
6 Months Ended
Jun. 30, 2011
Factoring Of Receivables [Abstract]  
FACTORING OF RECEIVABLES
NOTE 4 - FACTORING OF RECEIVABLES

During the six month period ended June 30, 2011, the Company entered into a factoring agreement amounting to $1.2 million with a certain banking institution on a non-recourse basis.  The factoring of trade receivables under this agreement is accounted for as a sale.  Under the terms of this factoring agreement, the Company transfers ownership of eligible trade receivables without recourse to the banking institution in exchange for cash.  Proceeds on the transfer reflect the face value of the account less a discount.  The discount, amounting to $12 thousand during the six months period ended June 30, 2011 is recorded to “financial expenses - net” within the Condensed Consolidated Statements of Operations.

The receivables sold pursuant to this factoring agreement are excluded from trade receivables on the Condensed Consolidated Balance Sheets and are reflected as cash provided by operating activities on the Condensed Consolidated Statements of Cash Flows.  The banking institution has no recourse to the Company’s assets for failure of debtors to pay when due.

The related commissions on the sales of trade receivables sold under these factoring agreements  amounting to $22 thousand were recorded to “financial expenses - net” within the Condensed Consolidated Statements of Operations.