SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION

9 Months Ended

12 Months Ended

Sep. 30, 2011

Dec. 31, 2010

Notes to Financial Statements

SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION

Balance sheets:

	31-Dec
	2010			2009
	($ in thousands)
a.      Accounts receivable:
1) Trade:
Open accounts	$	998		$	1,195
Allowance for doubtful accounts		(146	)		(6	)
	$	852		$	1,189
2)  Other:
Due to government institutions	$	56		$	76
Receivables on account of shares						*20
Fund in respect of employee right upon retirement		8			34
Other		11
	$	75		$	130

* The amount was subsequently paid in January 2010.

b. Inventory on consignment

The changes in inventory on consignment during the years ended December 31, 2010 and 2009 are as follows:

As of December 31, 2010 and 2009 Inventory on consignment included an amount of $280 thousands and $1,002 thousands, respectively related to products sales for which product returns could not be reliably estimated with the remainder relating to products sales for which returns were reliably estimated.

	Year ended December 31
	2010			2009
	($ in thousands)
Balance at beginning of year	$	1,093		$	1,423
Costs of revenues deferred during the year		326			421
Costs of revenues recognized during the year		(1,048	)		(751	)
Balance at end of year	$	371		$	1,093

c. Inventories:

	December 31
	2010		2009
	($ in thousands)
Finished goods	$	957	$	520
Work in process		573		331
Raw materials and supplies		174		95
	$	1,704	$	946

d. Accounts payable and accruals - others:

	December 31
	2010		2009
	($ in thousands)
Employees and employee institutions	$	375	$	395
Accrued vacation and recreation pay		147		95
Accrued expenses		632		502
Due to government institutions		100		37
Liability for employees rights upon retirement		7		30
Provision for returns		150		144
Taxes payable		98		101
	$	1,509	$	1,304

e. Deferred revenues

The changes in deferred revenues during the years ended December 31, 2010 and 2009 are as follows:

	Year ended December 31
	2010			2009
	($ in thousands)
Balance at beginning of year	$	1,975		$	2,482
Revenue deferred during the year		320			616
Revenue recognized during the year		(1,897	)		(1,123	)
Balance at end of year	$	398		$	1,975

Statements of Operation:

f. Financial expenses (income), net:

	Year ended December 31
	2010			2009
	($ in thousands)
Bank commissions	$	83		$	18
Interest income		(1	)		(1	)
Exchange rate differences		(33	)		30
Interest expense		105			221
Gain on extinguishment of convertible loan		—			(308	)
	$	154		$	(40	)