Supplementary Financial Statement Information

12 Months Ended

Dec. 31, 2011

Notes to Financial Statements

Supplementary Financial Statement Information

NOTE 12 - SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION:

Balance sheets:

	December 31
	2011			2010
	($ in thousands)
a.           Accounts receivable:
1) Trade:
Open accounts	$	2,426		$	998
Allowance for doubtful accounts		(142	)		(146	)
	$	2,284		$	852
2)  Other:
Due to government institutions	$	68		$	56	*
Advance payments to suppliers		32
Fund in respect of employee right upon retirement					8
Other		18			11
	$	118		$	75

* The amount was subsequently paid in January 2011.

b.       Inventories:

	December 31
	2011		2010
	($ in thousands)
Finished goods	$	741	$	957
Work in process		1,044		573
Raw materials and supplies		276		174
	$	2,061	$	1,704

c.       Inventory on consignment

The changes in inventory on consignment during the years ended December 31, 2011 and 2010 are as follows:

As of December 31, 2011 and 2010 Inventory on consignment included an amount of $110 thousand and $371 thousand, 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
	2011			2010
	($ in thousands)
Balance at beginning of year	$	371		$	1,093
Costs of revenues deferred during the year		110			326
Costs of revenues recognized during the year		(371	)		(1,048	)
Balance at end of year	$	110		$	371

d.       Accounts payable and accruals - others:

	December 31
	2011		2010
	($ in thousands)
Employees and employee institutions	$	376	$	375
Accrued vacation and recreation pay		271		147
Accrued expenses		1,267		632
Due to government institutions		3		100
Liability for employees rights upon retirement				7
Provision for returns		231		150
Taxes payable		69		98
	$	2,217	$	1,509

e.       Deferred revenues

The changes in deferred revenues during the years ended December 31, 2011 and 2010 are as follows:

	Year ended December 31
	2011			2010
	($ in thousands)
Balance at beginning of year	$	398		$	1,975
Revenue deferred during the year					320
Revenue recognized during the year		(398	)		(1,897	)
Balance at end of year	$	-		$	398

Statements of Operation:

f.        Financial expenses (income), net:

	Year ended December 31
	2011			2010			2009
	($ in thousands)
Bank commissions	$	63		$	83		$	18
Interest income		(36	)		(1	)		(1	)
Exchange rate differences		177			(33	)		30
Interest expense		730			105			221
Redemption of beneficial
conversion feature of convertible loan								(308	)
	$	934		$	154		$	(40	)