SuperCom (SPCB) 20-F20 Apr 232022 FY Annual report (foreign)Financial data

Company Profile

Document And Entity Information

Document And Entity Information	12 Months Ended
Document And Entity Information	Dec. 31, 2022 shares
Document Information [Line Items]
Entity Registrant Name	SUPERCOM LTD.
Entity Central Index Key	0001291855
Document Type	20-F
Amendment Flag	false
Document Shell Company Report	false
Document Registration Statement	false
Document Fiscal Year Focus	2022
Document Transition Report	false
Document Annual Report	true
Document Period End Date	Dec. 31, 2022
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Document Fiscal Period Focus	FY
Entity Well-known Seasoned Issuer	No
Entity Interactive Data Current	Yes
Current Fiscal Year End Date	--12-31
Entity Incorporation State Country Code	L3
Entity Address, Address Line One	3 Rothschild Street
Entity Address, City or Town	Tel Aviv
Entity Address, Postal Zip Code	6688106
Entity Emerging Growth Company	false
Entity File Number	001-33668
Entity Address, Country	IL
Entity Shell Company	false
Entity Common Stock, Shares Outstanding	4,206,327
Entity Filer Category	Non-accelerated Filer
Title of 12(b) Security	Ordinary Shares, NIS 2.5 Par Value
Trading Symbol	SPCB
Security Exchange Name	NASDAQ
Document Accounting Standard	U.S. GAAP
Auditor Firm ID	6501
Auditor Location	Tel Aviv, Israel
Auditor Name	Halperin Ilanit
Business Contact [Member]
Document Information [Line Items]
Entity Address, Address Line One	3 Rothschild Street
Entity Address, City or Town	Tel Aviv
Entity Address, Postal Zip Code	6688106
Entity Address, Country	IL
Contact Personnel Name	Ordan Trabelsi
City Area Code	972
Local Phone Number	9-8890850

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
CURRENT ASSETS
Cash and cash equivalents	$ 4,042	$ 3,537
Restricted bank deposit	463	1,067
Accounts receivable, net of allowance for doubtful accounts of $12,667 and $11,667 as of December 31, 2022 and 2021, respectively (Note 13)	10,852	11,061
Other current assets	2,239	1,599
Inventories, net	3,411	3,561
Patents held for sale	5,283	5,283
TOTAL CURRENT ASSETS	26,290	26,108
LONG-TERM ASSETS
Severance pay funds	482	487
Deferred tax long term	501	202
Property and equipment, net	1,640	1,804
Other Intangible assets, net	5,617	5,610
Goodwill	7,026	7,026
Operating lease right-of-use asset	484	882
TOTAL LONG-TERM ASSETS	15,750	16,011
TOTAL ASSETS	42,040	42,119
CURRENT LIABILITIES
Accounts payable	1,267	1,395
Employees and payroll accruals	1,339	2,119
Related parties	168	172
Short- term loans and other	900	207
Accrued expenses and other liabilities	469	1,559
Short- term operating lease liabilities	381	0
Deferred revenues	715	151
TOTAL CURRENT LIABILITIES	5,239	5,603
LONG-TERM LIABILITIES
Long-term loan	32,600	30,451
Deferred revenues	269	49
Deferred tax liability LT	170	170
Accrued severance pay	523	529
Long- term operating lease liabilities	108	925
TOTAL LONG TERM LIABILITIES	33,670	32,124
TOTAL LIABILITIES	38,909	37,727
Commitments and contingent liabilities
SHAREHOLDERS' EQUITY
Ordinary shares, NIS 2.5 par value - authorized 10,000,000 shares, 4,206,327 shares issued and outstanding at December 31, 2022 and 2,823,937 at December 31, 2021	3,057	2,028
Additional paid-in capital	103,000	97,833
Accumulated deficit	(102,926)	(95,469)
Total shareholders' equity	3,131	4,392
Total liabilities and shareholders' equity	$ 42,040	$ 42,119

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) $ in Thousands	Dec. 31, 2022 USD ($) shares	Dec. 31, 2021 USD ($) shares
Statement of Financial Position [Abstract]
Accounts receivables, allowance for doubtful accounts \| $	$ 12,667	$ 11,667
Ordinary shares, shares authorized	10,000,000	10,000,000
Ordinary shares, shares issued	4,206,327	2,823,937
Ordinary shares, shares outstanding	4,206,327	2,823,937

CONSOLIDATED BALANCE SHEETS (_2

CONSOLIDATED BALANCE SHEETS (Parenthetical 2) - ₪ / shares	Dec. 31, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Ordinary shares, par value per share	₪ 2.5	₪ 2.5

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Revenues
Total revenues	$ 17,649	$ 12,267
Cost of revenues
Total cost of revenues	11,261	6,063
Gross profit	6,388	6,204
Operating expenses:
Research and development	3,412	2,763
Sales and marketing	2,657	1,655
General and administrative	5,186	4,149
Other(income) expense, net	1,138	4,374
Total operating expenses	12,393	12,941
Operating loss	(6,005)	(6,737)
Financial expenses, net	(1,751)	(3,396)
Loss before income taxes	(7,756)	(10,133)
Income tax expense	299	(5)
Net loss	$ (7,457)	$ (10,138)
Net loss per share:
Net loss per share Basic	$ (2)	$ (3.9)
Net loss per share Diluted	$ (2)	$ (3.9)
Shares used in calculation of net income per share:
Shares used in calculation of net income per share Basic	3,691,226	2,619,810
Shares used in calculation of net income per share Diluted	3,691,226	2,619,810
Product [Member]
Revenues
Total revenues	$ 10,100	$ 4,475
Cost of revenues
Total cost of revenues	7,261	1,935
Service [Member]
Revenues
Total revenues	7,549	7,792
Cost of revenues
Total cost of revenues	$ 4,000	$ 4,128

CONSOLIDATED STATEMENT OF CHANG

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Ordinary Shares [Member]	Additional Paid in Capital [Member]	Accumulated deficit [Member]	Total
Balance at Dec. 31, 2020	$ 1,397	$ 88,853	$ (85,331)	$ 4,919
Balance, shares at Dec. 31, 2020	1,999,875
Exercise of options & convertible loans	$ 631	8,949		9,580
Exercise of options & convertible loans (Shares)	824,063
Share based compensation		31		31
Net loss			(10,138)	(10,138)
Balance at Dec. 31, 2021	$ 2,028	97,833	(95,469)	$ 4,392
Balance, shares at Dec. 31, 2021	2,823,938			2,823,937
Conversion of loans	$ 36	175		$ 211
Conversion of loans (Shares)	54,396
Exercise of options	$ 1			1
Exercise of options (Shares)	1,650
Share based compensation		138		138
Share Issuance for a total consideration of $6,389 net of $543 issuance expenses	$ 992	4,854		5,846
Share Issuance for a total consideration of $6,389 net of $543 issuance expenses (Shares)	1,326,343
Net loss			(7,457)	(7,457)
Balance at Dec. 31, 2022	$ 3,057	$ 103,000	$ (102,926)	$ 3,131
Balance, shares at Dec. 31, 2022	4,206,327			4,206,327

CONSOLIDATED STATEMENT OF CHA_2

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($)
Statement of Stockholders' Equity [Abstract]
Total consideration	$ 6,389
Share issuance expenses	$ 543

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
CASH FLOWS - OPERATING ACTIVITIES
Net loss	$ (7,457)	$ (10,138)
Adjustments to reconcile net loss to net cash used in operations:
Depreciation and amortization	2,691	2,228
Stock-based compensation	138	31
Decrease in deferred tax	(299)	2
Decrease in accounts receivables, net	209	1,366
Decrease (increase) in other current assets	(640)	(723)
Decrease (increase) in inventories, net	150	(1,157)
Increase (decrease) in accounts payables	(128)	(1,465)
Increase (decrease) in employees and payroll accruals	(780)	(508)
Increase (decrease) in accrued severance pay	51	(127)
Accrued interest on loans	2,360	2,733
Lease liability	(436)	(275)
Increase (decrease) in accrued expenses and other liabilities, related parties & deferred revenues	(513)	(1,380)
Net cash used in operating activities	(4,654)	(9,413)
CASH FLOWS - INVESTING ACTIVITIES
Purchase of property and equipment	(524)	(947)
Capitalization of software development costs	(1,613)	(736)
Increase in severance pay fund	(52)	44
Net cash used in investing activities	(2,189)	(1,639)
CASH FLOWS - FINANCING ACTIVITIES
Related parties	(4)	(1,577)
Long-term debt, net	0	5,680
Increase in short-term credit	900	0
Share issuance, net	5,848	7,601
Net cash provided by financing activities	6,744	11,704
Increase in cash, cash equivalents, and restricted cash	(99)	652
Cash, cash equivalents, and restricted cash - beginning of year	4,604	3,952
Cash, cash equivalents, and restricted cash - end of year	4,505	4,604
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid for taxes	0	5
Cash paid for interest, net	0	0
NON-CASH TRANSACTIONS:
Conversion of loans and other liabilities into ordinary shares	$ 212	$ 8,945

GENERAL

GENERAL	12 Months Ended
GENERAL	Dec. 31, 2022
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. 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 The Company is a global provider of traditional and digital identity solutions, providing advanced safety, identification, tracking and security products to governments and organizations, both private and public, throughout the world. The Company provides cutting edge real-time positioning, tracking, monitoring and verification solutions enabled by its RFID &Mobile pure security advanced solutions suite of products and technologies, all connected to a web-based, secure, proprietary, interactive and user-friendly interface. The Company offers a wide range of solutions including, national ID registries, e-passports, biometric visas, automated fingerprint identification systems, digitized driver’s licenses, and electronic voter registration and election management using the common platform (“MAGNA”). The Company sells its products through marketing offices in the U.S, and Israel. b. During 2021, The company’s business, trading and operations were impacted materially by COVID-19. COVID-19 related imposed government restrictions in California, Israel and other geographies limited our ability to interact with our clients to provide full services as well as adding new clients to our monitoring programs given court systems shutdown. During most of the year 2021, the government imposed lockdowns and travel restrictions also hindered proper project deployment, productions, support, sales and R&D processes: (i) had prevented our sales teams to meet customers and demonstrate our products, (ii) had prevented our support teams to travel and visit customers in order to provide the adequate support and upgrades to our products (iii) had prevented our customers to complete tenders, purchases, (iv) had prevented proper collection of our client debt due to travel limitation or liquidity problems with our customers, (v) had prevented our customers and partners to complete the integrations and deployments of the Company current contacts. During 2022, The Company’s business, trading and operations were not impacted materially by COVID-19. COVID-19 related imposed government restrictions in California, Israel and other geographies were removed during 2022. COVID-19 is no longer adversely affect our future results of operations, cash flows and financial condition. c. 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 and for the year ended December 31, 2022, the Company had an accumulated deficit of $102,926, and net cash used in operating activities of $4,654 compared to $9,413 for the year ended December 31, 2021. 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 December 31, 2022, the Company had cash, cash equivalent and restricted cash of $4,505 and positive working capital of $21,051. Further, during 2021, the Company underwent a cost optimization process to have a more efficient structure to operate. Additionally, the Company secured financing of $20,000 Fortress Investment Group 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 (“Subordinated Debt”). The Company raised a gross amount of approximately $3,200 in a private placement in July 2021. 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) working capital needs for multiple new government customer contracts with significant positive cash flow. On March 1, 2022, the Company raised approximately $4,650 in gross proceeds in a registered direct offering with a single accredited institutional investor of an aggregate of 313,000 of its ordinary shares, and 440,159 pre-funded warrants to purchase ordinary shares with an exercise price of $0.0001 per share, and concurrent private placement to the Purchaser of the Company’s private warrants to purchase an aggregate of 564,869 ordinary shares at an exercise price of $7 per share. On March 30, 2023, the Company raised $2,400 in gross proceeds in a registered direct offering from a sale to a single accredited institutional investor 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 ordinary shares at an exercise price of $1.66 per share. Furthermore, the available $6,000 in the secured credit facility from Fortress Investment Group may provide, under certain conditions, the Company additional access to capital if needed. The Company believes that based on the above-mentioned secured financings, management’s plans, maintaining the 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. d. Senior Secured Credit Facility and Subordinated Debt 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 which finalized on October 26, 2018 has an aggregate principal of $10,000, and the Incremental Term Loan provides for 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 needs of the company. The Credit Facility 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 which remain un-borrowed, the Company incurs interest at a rate of 0.50% per annum ("Unused Fee"). From closing and until today, the Company only paid monthly interest payments. In 2024 the Company expects to start making partial monthly payments towards the principal balance, with the majority of the principal to be paid via a bullet payment at the maturity date, which the company expects to be amended to August 2025. As of December 31, 2022, the outstanding balance of the Credit Facility was $16,967 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 subordinated notes, gross proceeds of $12,000. For the consideration of $12,000 in gross proceeds, SuperCom issued to a certain institutional investor in February 2021 and June 2021, two-year unsecured, subordinated promissory notes in the amounts of $7,000 and $5,000, respectively, both with similar structures and terms. Given the subordination agreement between the senior secured loan investor, the subordinated debt investor and the Company, the subordinated investor may request that the balance of the subordinated debt be paid only after the senior secured debt is paid in full, currently expected on August 2025.. The notes have a 5% annual coupon and a built-in increase to the balance of the notes by 5% every 6 months for the first 24 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. During 2022 and 2021 the Company converted $211 and $8,945 of the remaining principal and accrued interest of subordinated notes issued in 2020 into the Company’s ordinary shares. As of December 31, 2022, the outstanding principal and accrued interest of the Subordinated Debt was $15,633.

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
SIGNIFICANT ACCOUNTING POLICIES	Dec. 31, 2022
Accounting Policies [Abstract]
SIGNIFICANT ACCOUNTING POLICIES	NOTE 2: SIGNIFICANT ACCOUNTING POLICIES The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“US GAAP”). a. Use of estimates: The preparation of the financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of expenses during the reporting periods. Actual results could differ from those estimates. As applicable to these financial statements, the most significant estimates and assumptions include (i) Revenue Recognition; (ii) Allowance for Doubtful Accounts; (iii) Deferred Income Taxes and (iv) measurement of the fair value of intangible assets and goodwill. b. Financial statements in U.S. dollars: Most of the revenues of the Company are received in U.S. dollars. In addition, a substantial portion of the costs of the Company are incurred in U.S. dollars. Therefore, management believes that the dollar is the currency of the primary economic environment in which the Company operate. Thus, the functional and reporting currency of the Company is the U.S. dollar. Transactions and balances denominated in U.S. dollars are presented at their original amounts. Monetary accounts denominated in currencies other than the dollar are re-measured into dollars in accordance with ASC No. 830, "Foreign Currency Matters". All transaction gains and losses from the re-measurement of monetary balance sheet items are reflected in the statements of operations as financial income or financial expenses as appropriate. c. Principles of consolidation: The consolidated financial statements include the accounts of the Company and its subsidiaries. Intercompany transactions and balances were eliminated upon consolidation. Profits from intercompany sales, not yet realized outside the group, were also eliminated. d. Cash and cash equivalents: The Company considers unrestricted short-term highly liquid investments originally purchased with maturities of three months or less to be cash equivalents. The Company has not held any cash equivalents during 2022 and 2021. e. Restricted Cash: Restricted cash held in interest bearing saving accounts which are used as a security for the Company's Israeli facility leasehold bank guarantee, and as a security for ongoing terms of the contracts with existing customers and commercial tenders guarantees. f. Allowance for doubtful accounts: The allowance for doubtful accounts is determined with respect to specific amounts the Company has determined to be doubtful of collection. In determining the allowance for doubtful accounts, the Company considers, among other things, its past experience with such customers and the information available regarding such customers. g. Inventories: Inventories are stated at the lower of cost or net realizable value. Inventory write-offs are mainly provided to cover risks arising from slow-moving items or technological obsolescence. Cost is determined for all types of inventory using the moving average cost method. h. Property and equipment: Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is computed using the straight-line method, over the estimated useful lives, at the following annual rates: years Computers and peripheral equipment 3 Leased Products to Customers 5 Office furniture and equipment 5 - 17 Leasehold improvements Over the shorter of the term of the lease or the life of the asset i. Intangible assets: Intangible assets that are not considered to have an indefinite useful life are amortized using units of production and the straight-line basis over their estimated useful lives, as noted below. Recoverability of these assets is measured by a comparison of the carrying amount of the asset to the undiscounted future cash flows expected to be generated by the assets. If the assets are considered to be impaired, the amount of any impairment is measured as the difference between the carrying value and the fair value of the impaired assets. Intangible assets and their useful lives are as follows: Useful Life (in Years) Customers relationships & Other Between 4.5-13 (mainly 13) IP & Technology Between 4-15 (mainly 15) Capitalized software development costs Between 4-5 As of December 31, 2022, and 2021 no impairment losses were identified. Acquisition-related intangible assets: The Company accounts for its business combinations in accordance with ASC 805 “Business Combinations” and with ASC 350-20 “Goodwill and Other Intangible Assets” (“ASC 350-20”). ASC 805-10 specifies the accounting for business combinations and the criteria for recognizing and reporting intangible assets apart from goodwill. Acquisition-related intangible assets result from the Company’s acquisitions of businesses accounted for under the purchase method and consist of the value of identifiable intangible assets including developed software products, brand and patents, as well as goodwill. Goodwill is the amount by which the acquisition cost exceeds the fair values of identifiable acquired net assets on the date of purchase. Acquisition-related definite lived intangible assets are reported at cost, net of accumulated amortization. j. Goodwill: The Company’s goodwill reflects the excess of the consideration paid or transferred including the fair value of contingent consideration over the fair values of the identifiable net assets acquired. The goodwill impairment test is performed by evaluating an initial qualitative assessment of the likelihood of impairment. If this step indicates that the qualitative assessment does not result in a more likely than not indication of impairment, no further impairment testing is required. If it does result in a more likely than not indication of impairment, the impairment test is performed. In step one of the impairment test, the Company compares the fair value of the reporting unit to the carrying value of the reporting unit. If the fair value of the reporting unit exceeds the carrying value of the net assets allocated to that unit, goodwill is not impaired, and no further testing is required. If the fair value is less than the carrying value of the reporting unit, then the second step of the impairment test is performed to measure the amount of the impairment. In the second step, the reporting unit’s fair value is allocated to all the assets and liabilities of the reporting unit, including any unrecognized intangible assets, in a hypothetical analysis that simulates the business combination principles to derive an implied goodwill value. If the implied fair value of the reporting unit’s goodwill is less than its carrying value, the difference is recorded as impairment. For the years ended December 31, 2022 and 2021 the Company performed an annual impairment analysis and no impairment losses have been identified. k. Impairment of long-lived assets and intangible assets with definite useful life: The Company’s long-lived assets and intangible assets with definite useful life are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by the asset. If such asset is considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the asset exceeds the fair value of the asset. l. Long lived assets held for sale: The company accounted for its long lived assets held for sale under ASC 360-10 ("Impairment or disposal of Long-lived Assets"). Under management decision, the patents acquired under Alvarion Ltd. and Safend Ltd. acquisitions during 2016, were not intended for internal use by the Company, and thus accounted for as Long lived assets held for sale. During 2021 and 2022, following management decision, the Company elected to enter into engagements with several brokers for the purpose of marketing and sale of those patents. Realization costs of the patents are immaterial. For the years ended December 31, 2022 and 2021 the Company did not identify any triggers for impairment. m. Accrued severance pay and severance pay fund: The liabilities of the Company for severance pay of its Israeli employees are calculated pursuant to Israel’s Severance Pay Law. Employees are entitled to one month’s salary for each year of employment, or portion thereof. The Company’s liability for all its employees is presented under “accrued severance pay”. The Company deposits on a monthly basis to severance pay funds and insurance policies. The value of these policies is presented as an asset on the Company’s balance sheet. The deposited funds include accrued income up to the balance sheet date. The deposited funds may be withdrawn only upon the fulfillment of the Company’s obligation pursuant to Israel’s Severance Pay Law or labor agreements. A defined contribution plan is a program that benefits an employee after termination of employment, under which the Company regularly makes fixed payments to a fund administered by a separate and independent entity so that the Company has no legal or constructive obligation to pay additional contributions if such fund does not contain sufficient assets to pay all employees the benefits to which they may be entitled relating to employee service in the current and prior periods. The fund assets are not included in the Company’s consolidated balance sheets. Severance expenses for the years ended December 31, 2022 and 2021 amounted to $360 and $385, respectively. n. Revenue recognition: The Company and its subsidiaries generate their revenues from the sale of products, licensing, maintenance, royalties and long term contracts (including training and installation). The Company recognize revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers The Company measures revenue based upon the consideration specified in the client arrangement, and revenue is recognized when the performance obligations in the client arrangement are satisfied. A performance obligation is a promise in a contract to transfer a distinct service to the customer. The transaction price of a contract is allocated to each distinct performance obligation and recognized as revenue when or as, the customer receives the benefit of the performance obligation. Under ASC 606, revenue is recognized when a customer obtains control of promised services in an amount that reflects the consideration the Company expect to receive in exchange for those services. To achieve this core principle, the Company applies the following five steps: 1) Identify the contract with a customer A contract with a customer exists when (i) the Company enters into an enforceable contract with a customer that defines each party’s rights regarding the services to be transferred and identifies the payment terms related to these services, (ii) the contract has commercial substance and, (iii) the Company determines that collection of substantially all consideration for services that are transferred is probable based on the customer’s intent and ability to pay the promised consideration. The Company applies judgment in determining the customer’s ability and intention to pay, which is based on a variety of factors including the customer’s historical payment experience or, in the case of a new customer, published credit and financial information pertaining to the customer. 2) Identify the performance obligations in the contract Performance obligations promised in a contract are identified based on the services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the service either on its own or together with other resources that are readily available from third parties or from the Company, and are distinct in the context of the contract, whereby the transfer of the services is separately identifiable from other promises in the contract. To the extent a contract includes multiple promised services, the Company must apply judgment to determine whether promised services are capable of being distinct in the context of the contract. If these criteria are not met the promised services are accounted for as a combined performance obligation. 3) Determine the transaction price The transaction price is determined based on the consideration to which the Company will be entitled in exchange for transferring services to the customer. The Company evaluates whether a significant financing component exists when the Company recognizes revenue in advance of customer payments that occur over time. For example, some of the Company contracts include payment terms greater than one year from when we transfer control of goods and services to the Company customers and the receipt of the final payment for those goods and services. If a significant financing component exists, the Company classifies a portion of the transaction price as interest income, instead of recognizing all of the transaction price as revenue. The Company does not adjust the transaction price for the effects of financing if, at contract inception, the period between the transfer of control to a customer and final payment is expected to be one year or less. 4) Allocate the transaction price to performance obligations in the contract If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. However, if a series of distinct services that are substantially the same qualifies as a single performance obligation in a contract with variable consideration, the Company must determine if the variable consideration is attributable to the entire contract or to a specific part of the contract. Contracts that contain multiple performance obligations require an allocation of the transaction price based on management’s judgement. 5) Recognize revenue when or as the Company satisfies a performance obligation The Company satisfies performance obligations either over time or at a point in time. Revenue is recognized at the time the related performance obligation is satisfied by transferring a promised good or service to a customer. Nature of goods and services The following is a description of the Company’s goods and services from which the Company generates revenue, as well as the nature, timing of satisfaction of performance obligations, and significant payment terms for each, as applicable: Software Maintenance and Support Services Revenue Software maintenance and support services contracts are sold in conjunction with the Company’s software products for its e-Gov, IoT and Connectivity, and Cyber Security revenue streams. The contract terms for software maintenance and support span one five The Company recognizes revenue from fixed-price service and maintenance contracts using the input method of accounting. Under the input method, revenue is recognized on the basis of an entity’s efforts toward satisfying a performance obligation. The Company recognizes revenue from maintenance and support services provided pursuant to the time elapsed under such contracts, as that is when the performance obligation to the Company customers under such arrangements is fulfilled. Perpetual Software License Revenue The Company generates revenue from the sales of perpetual software licenses for its Cyber Security and e-Gov segments, including sales for its Magna_DL, Magna_VL, Magna_Passport, and Magna_ID software products. The intellectual property rights for usage of these products are transferred to the customer at the time of purchase and the software does not require implementation services, ongoing maintenance and support, or other adaptions in order to maintain utility. In arrangements where ongoing services are not essential to the functionality of the delivered software, the Company recognizes perpetual software license revenue when the license agreement has been approved and the software has been delivered. The Company can identify each party’s rights, payment terms, and commercial substance of the content. Where applicable, the Company identifies multiple performance obligations and record as revenue as the performance obligations are fulfilled based on the adjusted market assessment approach. Annual Software License Revenue The Company generates revenue from the sales of time-based software licenses for certain of its software products. The intellectual property rights for access to these products are transferred to the customer for contract terms of one year and the software requires ongoing maintenance, support, or other adaptions in order to maintain utility. The Company recognizes revenue over time using the input method for its annual software licenses when ongoing services are determined to be essential to the functionality of the delivered software. The license along with the any customization services are transferred to the Company customers pursuant to the time elapsed under such contracts, as that is when the Company performance obligation to its customers under such arrangements is fulfilled. System Design Revenue System design revenue relate to services provided to governments and national agencies in the early stages of a new project including incumbent system data information extraction, customer interviewing and specification mapping, architecture and software design, secure credential design, project management and planning, data migration design, project operation planning, training, assimilation, and operational processes optimization for the Company’s e-Gov and IoT solutions. The Company recognizes revenue from its system design services using the input method of accounting. Under the input method, revenue is recognized on the basis of an entity’s efforts or inputs toward satisfying a performance obligation. The Company recognizes revenue from system design services provided pursuant to time-and-materials based contracts as the services are performed, as that is when the Company performance obligation to its customers under such arrangements is fulfilled. Where applicable, the Company identifies multiple performance obligations and record as revenue as the performance obligations are fulfilled based on the using the expected cost plus a margin approach. Implementation and System Deployment Revenue Implementation and system deployment revenue relate to services provided to governments and national agencies typically after the design stage is concluded including infrastructure setup and deployment, software and chip design development, software customizations, purchase, and deployment of hardware and necessary system components, system integration and implementation, process engineering, customer training, system quality assurance testing, load balancing and local environment optimizations, and operational system launch for the Company’s e-Gov and IoT solutions. The Company recognizes revenue from its implementation and system deployment revenue using the input method of accounting. Under the input method, revenue is recognized on the basis of an entity’s efforts or inputs toward satisfying a performance obligation. The Company recognizes revenue from implementation and system deployment services provided pursuant to time-and-materials based contracts as the services are performed, as that is when the Company performance obligation to its customers under such arrangements is fulfilled. Where applicable, the Company identifies multiple performance obligations and record as revenue as the performance obligations are fulfilled based on the using the residual approach. Procurement of Secure Document Consumables Revenue The Company procures secure document consumables for its e-Gov government customers which are needed to issue secure documents after a project deployment is complete and a system in actively running and operational. These consumables are manufactured generally at secure printing facilities utilizing proprietary and customized designs, which the Company has developed during the project design stage, to provide multiple layers of security preventing falsification of documents. These consumables include base card stock, security laminates, holograms, passive RFID chip inlays, passport booklets, secure chip cards, and various other secure credentialing necessities. The Company recognizes revenue on procurement of secure document consumables products when the customer has control of the product, which is determined to be at the point in time when the products are delivered. Where applicable, the Company identifies multiple performance obligations and record as revenue as the performance obligations are fulfilled based on their stated prices within the contract. Wireless & RFID Products Revenue The Company’s wireless products include solutions for carrier wi-fi, enterprise connectivity, smart city, smart hospitality, connected campuses and connected events which enhance productivity and performance. The Company’s RFID products include asset tags which provide real-time asset loss prevention, inventory management, and personnel/asset tracking and vehicle tags which provide long-range vehicle ID for parking and fleet management, access control, asset loss prevention at airports, gated communities, truck and bus terminals, employee parking lots, hospitals, industrial facilities, railroads, mines and military installations. The Company recognizes revenue on wireless and RFID products when the customer has control of the equipment, which is determined to be at the point in time when the products are shipped. Where applicable, the Company identifies multiple performance obligations and record as revenue as the performance obligations are fulfilled based on their stated prices within the contract. Electronic Monitoring Services Revenue Electronic monitoring services represent fees the Company collects through the sale or rental of its PureSecurity Suite of products, which include the PureMonitor, PureTrack, PureTag, PureCom, PureBeacon, and SCRAM devices. These devices identify, track, and monitor people or objects in real time through the Company’s GPS monitoring, home monitoring, and alcohol tracking solutions. The Company recognizes revenue on the sale of electronic monitoring products when the customer has control of the equipment, which is determined to be at the point in time when the products are shipped. For devices which are rented and for electronic monitoring services provided, the Company recognizes revenue pursuant to the time elapsed for such contracts, as that is when the Company performance obligation to its customers under such arrangements is fulfilled. The Company customers typically pay for these services based on a net rate per day per individual or on a fixed monthly rate. Treatment Services Revenue Treatment services revenue is an extension of the Company’s electronic monitoring services. The Company provides individuals who have completed or are near the end of their sentence with the resources necessary to productively transition back into society. Through the Company daily reporting centers, we provide criminal justice programs and reentry services to help reduce recidivism which include case management, substance abuse education, vocational training, parental support, employment readiness and job placement. These activities are considered to be a bundle of services which are a part of a series of distinct services recognized over time. The Company recognizes revenue from its treatment services using the input method of accounting. Under the input method, revenue is recognized revenue on the basis of an entity’s efforts or inputs toward satisfying a performance obligation. The Company recognizes revenue from implementation and system deployment services provided pursuant to time-and-materials based contracts as the services are performed, as that is when the Company performance obligation to its customers under such arrangements is fulfilled. Where applicable, the Company identify multiple performance obligations and record as revenue as the performance obligations are fulfilled based on the using the expected cost plus a margin approach. Professional Services Revenue The Company offers professional services for the Company’s Cyber Security software products, which includes an on-site / remote visit by a specialist technician to assist with installation, deployment and configuration. The Company recognizes revenue from professional services upon completion of the service performed for the customer. As these services are completed during a single onsite visit, revenue is recognized at a point in time of such onsite visit. Disaggregation of revenue In the following table, revenue is disaggregated by major geographic region and timing of revenue recognition. The table also includes a reconciliation of the disaggregated revenue with the reportable segments: Year ended December 31, 2022 Cyber Security IoT e-Gov Total Major geographic areas Africa $ - $ - $ 374 $ 374 European countries 273 9,023 263 9,559 South America - - - - United States 351 6,526 - 6,877 Israel 614 79 - 693 APAC 146 - - 146 Total revenue $ 1,384 $ 15,628 $ 637 $ 17,649 Timing of revenue recognition Products and services transferred over time $ 498 $ 11,697 $ 335 $ 12,530 Products transferred at a point in time 886 3,931 302 5,119 Total revenue $ 1,384 $ 15,628 $ 637 $ 17,649 Year ended December 31, 2021 Cyber Security IoT e-Gov Total Major geographic areas Africa $ - $ - $ 1,586 $ 1,586 European countries 527 2,242 143 2,912 South America 1 36 - 37 United States 410 6,410 - 6,820 Israel 648 109 - 757 APAC 48 107 - 155 Total revenue $ 1,634 $ 8,904 $ 1,729 $ 12,267 Timing of revenue recognition Products and services transferred over time $ 44 $ 7,176 $ 1,428 $ 8,648 Products transferred at a point in time 1,590 1,728 301 3,619 Total revenue $ 1,634 $ 8,904 $ 1,729 $ 12,267 Transaction price allocated to the remaining performance obligations Remaining performance obligations represent the transaction price of system deployment, service and maintenance contracts for which work has not been performed as of the period end date. As of December 31, 2022, the aggregate amount of the transaction price allocated to remaining performance totals $33.13 million. The Company expects approximately 43% of remaining performance obligations to be recognized into revenue within the next 12 months, with the remaining 57% recognized thereafter. The Company applies the practical expedient in paragraph ASC 606-10-50-14 and does not disclose information about remaining performance obligations that have original expected durations of one-year or less. We apply the transition practical expedient in paragraph ASC 606-10-65-1(f)(3) and do not disclose the amount of the transaction price allocated to the remaining performance obligations and an explanation of when the Company expects to recognize that amount as revenue. Additionally, applying the practical expedient in paragraph ASC 340-40-25-4, the Company recognizes the incremental costs of obtaining contracts (i.e., commissions) as an expense when incurred if the amortization period of the assets that the Company otherwise would have recognized is one-year or less. o. Research and development costs and software development costs: Research and development costs are expensed as incurred. Software development costs eligible for capitalization are accounted for in accordance with 985-20 Software - Costs of Software to be Sold, Leased or Marketed. Capitalization of software development costs for products to be sold to third parties begins upon the establishment of technological feasibility and ceases when the product is available for general release. Amortization is calculated and provided over the estimated economic life of the software, using the greater of (i) straight-line method or if applicable (ii) the ratio that current gross revenues for a product bear to the total of current and anticipated future gross revenues for that product. Amortization commences when developed software is available for general release to clients. The estimated useful life of capitalized software development costs is 5 years. p. Income taxes: The Company and its subsidiaries account for income taxes in accordance with ASC Topic 740, “Income Taxes”. This Statement prescribes the use of the liability method whereby deferred tax asset and liability account balances are determined based on differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws, that will be in effect when the differences are expected to reverse. The Company and its subsidiaries provide a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable value. The Company accounts for uncertain tax positions in accordance with ASC Topic 740-10, which prescribes detailed guidance for the financial statement recognition, measurement and disclosure of uncertain tax positions recognized in an enterprise’s financial statements. According to ASC Topic 740-10, tax positions must meet a more-likely-than-not recognition and measurement threshold. The Company’s accounting policy is to classify interest and penalties relating to uncertain tax positions under income taxes, however the Company did not recognize such items in its fiscal 2022 and 2021 financial statements. q. Concentrations of credit risk: Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, restricted cash deposits and trade receivables. The Company’s trade receivables are derived from sales to customers located primarily in Europe, Africa, the United States and South America. The Company performs ongoing credit evaluations of its customers’ financial condition. The allowance for doubtful accounts is determined with respect to specific debts that the Company has determined to be doubtful of collection. Cash and cash equivalents and restricted cash deposits are deposited with major banks in Israel and the United States. Management believes that such financial institutions are financially sound and, accordingly, minimal credit risk exists with respect to these financial instruments. The Company has no significant off-balance-sheet concentration of credit risk. r. Concentrations of suppliers: 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 s. Basic and diluted earnings per share: Basic earnings per share are computed based on the weighted average number of ordinary shares outstanding during each year. Diluted earnings per share are computed based on the weighted average number of ordinary shares outstanding during each year, plus the dilutive potential of stock options and warrants outstanding during the year using the treasury stock method. The numbers of potential shares from the conversion of options and warrants that have been excluded from the calculation were 1.713 million and 0.288 million for the years ended December 31, 2022 and 2021, respectively t. Fair value of financial instruments: The Company applies ASC 820, "Fair Value Measurements and Disclosures" ("ASC 820"), pursuant to which fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the "exit price") in an orderly transaction between market participants at the measurement date. In determining fair value, the Company uses various valuation approaches. ASC 820 establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company's assumptions about the assumptions market participants wou

OTHER CURRENT ASSETS

OTHER CURRENT ASSETS	12 Months Ended
OTHER CURRENT ASSETS	Dec. 31, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
OTHER CURRENT ASSETS	NOTE 3: OTHER CURRENT ASSETS December 31, 2022 2021 Prepaid expenses $ 224 $ 209 Advances to suppliers 337 323 Government institutions 740 983 Guaranty held by customer 621 - Other 317 84 $ 2,239 $ 1,599

INVENTORIES, NET

INVENTORIES, NET	12 Months Ended
INVENTORIES, NET	Dec. 31, 2022
Inventory Disclosure [Abstract]
INVENTORIES, NET	NOTE 4: INVENTORIES, NET December 31, 2022 2021 Raw materials, parts and supplies $ 1,726 $ 1,947 Finished products 1,685 1,614 $ 3,411 $ 3,561 As of December 31, 2022 and 2021, inventory is presented net of write offs for slow inventory in the amount of approximately $2,215 and $2,196, respectively.

PROPERTY AND EQUIPMENT, NET

PROPERTY AND EQUIPMENT, NET	12 Months Ended
PROPERTY AND EQUIPMENT, NET	Dec. 31, 2022
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT, NET	NOTE 5: PROPERTY AND EQUIPMENT, NET December 31, 2022 2021 Cost: Computers and peripheral equipment $ 3,206 $ 3,040 Office furniture and equipment 852 850 Trade Equipment 42 42 Leasehold improvements 210 210 Equipment in lease 2,890 2,534 7,200 6,676 Accumulated depreciation: Computers and peripheral equipment 2,855 2,729 Office furniture and equipment 760 735 Trade Equipment 39 39 Leasehold improvements 198 197 Equipment in lease 1,708 1,172 5,560 4,872 Depreciated cost $ 1,640 $ 1,804 Purchasing of Equipment for the years ended December 31, 2022 and 2021, were $524 and $946, respectively. Depreciation expenses for the years ended December 31, 2022 and 2021, were $688 and $513, respectively.

OTHER INTANGIBLE ASSETS, NET

OTHER INTANGIBLE ASSETS, NET	12 Months Ended
OTHER INTANGIBLE ASSETS, NET	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
OTHER INTANGIBLE ASSETS, NET	NOTE 6: OTHER INTANGIBLE ASSETS, NET Other intangible assets consisted of the following: December 31, 2022 December 31, 2021 Carrying Accumulated Net Book Carrying Accumulated Net Book Customers relationships & Other $ 8,734 $ 8,112 $ 622 $ 8,734 $ 7,798 $ 936 IP & Technology 7,019 4,898 2,121 7,019 4,524 2,495 Capitalized software development costs 9,614 6,740 2,874 8,001 5,822 2,179 $ 25,367 $ 19,750 $ 5,617 $ 23,754 $ 18,144 $ 5,610 Amortization expenses amounted to $1,607 and $1,396 for the years ended December 31, 2022 and 2021, respectively.

ACCRUED EXPENSES AND OTHER LIAB

ACCRUED EXPENSES AND OTHER LIABILITIES	12 Months Ended
ACCRUED EXPENSES AND OTHER LIABILITIES	Dec. 31, 2022
Accrued Liabilities and Other Liabilities [Abstract]
ACCRUED EXPENSES AND OTHER LIABILITIES	NOTE 7: ACCRUED EXPENSES AND OTHER LIABILITIES December 31, 2022 2021 Accrued management services $ 86 $ 86 Professional services 202 206 Facilities - 136 Legal contingent liability - 67 Legal service providers - 28 Authorities - 393 Other accrued expenses 181 643 $ 469 $ 1,559

COMMITMENTS AND CONTINGENT LIAB

COMMITMENTS AND CONTINGENT LIABILITIES	12 Months Ended
COMMITMENTS AND CONTINGENT LIABILITIES	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENT LIABILITIES	NOTE 8: COMMITMENTS AND CONTINGENT LIABILITIES a. LEASES The Company determines if a contract contains a lease at inception and recognizes operating lease right-of-use assets and operating lease liabilities based on the present value of the future minimum lease payments at the commencement date. As the Company's leases do not provide an implicit rate, management develops incremental borrowing rates based on the information available at the commencement date in determining the present value of future payments. Lease expenses are recognized on a straight-line basis over the lease term. We do not own any real estate. We lease approximately 1,139 square meters of office and warehousing premises in Tel Aviv and Herzliya, Israel, under a new lease which started on April l We lease approximately 1,320 square meters of office premises in California for our U.S. subsidiary, LCA Inc., which under the current lease contracts expire in 2023, with a monthly fee of approximately $34. Year ended December 31, 2022 2021 The components of lease expense were as follows: Operating leases expenses $ 475 $ 356 Cash flow information related to operating leases: Cash used in operating activities $ 502 $ 303 Non-cash activity - Right of use assets obtained in exchange for new operating lease liabilities $ - $ 1,200 December 31, 2022 2021 Supplemental information related to operating leases, including location of amounts reported in the accompanying consolidated balance sheets, follows: Other assets - Right-of-Use assets $ 1,200 $ 1,200 Accumulated amortization 716 318 Operating lease Right-of-Use assets, net $ 484 $ 882 Lease liabilities – current - accrued expenses and other liabilities $ 381 $ - Lease liabilities – noncurrent 108 925 Total operating lease liabilities $ 489 $ 925 Weighted average remaining lease term in years 1.2 Weighted average annual discount rate 9 % Future minimum lease commitments under non-cancelable operating leases for the years ended December 31, 2022, are as follows: 2023 $ 440 2024 103 2025 - Total operating lease payments 543 Less: imputed interest (54 ) Present value of lease Liabilities $ 489 Rent expenses amounted to $817 and $714 for the years ended December 31, 2022 and 2021, respectively. b. Guarantees, indemnity and liens: 1. The Company and its subsidiaries issued bank guaranties in the total amount of approximately $375 as a part of the ongoing terms of lease contracts, contracts with existing customers and for tenders. 2. Under the Fortress Agreement, the Company recorded a fix floating charge on all of the Company’s assets in favor of the Fortress, limited in amount, in order to secure long-term loan granted by them in favor of the Company. The Company is party to legal proceedings in the normal course of our business. There are no material pending legal proceedings to which the Company is a party or of which our property is subject. Although the outcome of claims and lawsuits against the Company cannot be accurately predicted, we do not believe that any of the claims and lawsuits, will have a material adverse effect on the Company business, financial condition, results of operations or cash flows for any quarterly or annual period.

INCOME TAX

INCOME TAX	12 Months Ended
INCOME TAX	Dec. 31, 2022
Income Tax Disclosure [Abstract]
INCOME TAX	NOTE 9: INCOME TAX a. Corporate tax rate in Israel in 2021 and 2022 was 23%. b. Our USA subsidiaries were subject to federal tax rate of 21% in 2021 and 2022, state tax of 8.84% in CA and 6.5% in NY, and city tax of 6.5% in NYC. c. Deferred income taxes: Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the deferred tax assets of the Company and its subsidiaries are as follows: December 31, 2022 2021 Operating loss carry forwards $ 21,362 $ 20,150 Reserves and allowances 4,475 4,206 Net deferred tax assets before valuation allowance 25,837 24,356 Valuation allowance (25,414 ) (23,797 ) Net deferred tax assets 423 559 Deferred income taxes consist of the following: Domestic 20,867 19,521 Valuation allowance (20,444 ) (18,963 ) Net deferred tax assets 423 558 Foreign 4,970 4,835 Valuation allowance (4,970 ) (4,835 ) $ - $ - As of December 31, 2022, the Company and its subsidiaries, have provided a valuation allowance of $25,414 in respect of deferred tax assets resulting from tax loss carryforwards and other temporary differences. Other tax loss carryforwards and temporary differences in the amount of $423 were not provided with valuation allowance as the Company’s management currently believes that these tax assets are more likely than not to be recovered. d. Carryforward tax losses: As of December 31, 2022, SuperCom Ltd and its subsidiaries in Israel have accumulated losses for tax purposes of approximately $55,165, which may be carried forward and offset against taxable income in the future for an indefinite period. SuperCom Ltd. also has a capital loss of approximately $15,810, which may be carried forward and offset against capital gains for an indefinite period. Loss carryforwards in Israel are measured in NIS. As of December 31, 2022, SuperCom’ s subsidiaries in the United States have estimated total available carryforward tax losses of approximately $19,203 which expires in the years 2028 to 2037. Utilization of the U.S. net operating losses may be subject to substantial annual limitation due to the "change in ownership" provisions of the Internal Revenue Code of 1986 and similar state provisions. The annual limitation may result in the expiration of net operating losses before utilization. SuperCom Ltd has assessments which are considered as final until the tax year ended December 31, 2015. SuperCom’s subsidiaries in the United States and Israel have not received final assessments since their incorporation. e. loss before income tax consists of the following: Year ended December 31, 2022 2021 Domestic $ (7,013 ) $ (10,616 ) Foreign (743 ) 483 $ (7,756 ) $ (10,133 ) Substantially, all tax expenses are as a result of changes in deferred taxes. f. Reconciliation of the theoretical tax benefit to the actual tax benefit: A reconciliation of theoretical tax expense, assuming all income is taxed at the statutory rate applicable to the income of companies in Israel, and the actual tax expense (benefit), is as follows: Year ended December 31, 2022 2021 Loss before income tax, as reported in the consolidated statements of operations $ (7,756 ) $ (10,133 ) Statutory tax rate in Israel 23 % 23 % Theoretical tax benefit (1,784 ) (2,331 ) Current year carryforward losses and other differences for which a valuation allowance was recorded 1,264 1,438 Changes in valuation allowance - - Offset of Other non-current assets (accounted for as DTA element) (79 ) (56 ) Changes in foreign currency exchange rate and other differences 481 788 Non-deductible expenses and other differences (181 ) 166 Actual income tax expense (benefit) $ (299 ) $ 5

SHARE CAPITAL

SHARE CAPITAL	12 Months Ended
SHARE CAPITAL	Dec. 31, 2022
Stockholders' Equity Note [Abstract]
SHARE CAPITAL	NOTE 10: SHARE CAPITAL a. The Company’s ordinary shares are quoted under the symbol “SPCB” on the NASDAQ Capital Market in the United States. b. Shareholders’ rights: The ordinary shares confer upon the holders the right to receive notice to participate and vote in the general meetings of the Company, and the right to receive dividends, if declared. c. On March 1, 2022, (the “Closing Date”) the Company raised gross proceeds of $4, in a registered direct offering with a single accredited institutional investor (the “Investor”) of an aggregate of 313,000 of its ordinary shares, par value NIS 2.5 per share (the “ordinary shares”), and 440,159 pre-funded warrants to purchase ordinary shares with an exercise price of $0.0001 per share, and concurrent private placement to the Investor of the Company’s private warrants to purchase an aggregate of 564,869 ordinary shares at an exercise price of $7 per share (the “March Warrants”). The March warrants will be exercisable beginning on the six-month anniversary of the Closing Date and will expire five years and six months following the Closing Date. Offering expenses in connection with the transaction were $369. d. On July 27, 2022, the Company entered into an agreement (the “Agreement”) with the Investor, which provides that the exercise price per share for the March Warrants will be equal to $3.08 but only with respect to a cash exercise and that the March Warrants will become immediately exercisable. In addition, the Company issued to the Investor a new warrant (the “New Warrant”) to purchase 564,869 ordinary shares. The New Warrant will be exercisable commencing 60 days after the issuance date and will terminate on the date that is seven years following the issuance date. The New Warrant will have an exercise price per ordinary share of $3.2. As of December 31, 2022 all 564,869 March Warrants were cash exercised into 564,869 Ordinary shares for a gross proceeds of $1,740. Offering expenses in connection with the transaction were $173. e. Stock options: 1. In 2003, the Company adopted a stock option plan under which the Company issues stock options (the “Option Plan”). The Option Plan is intended to provide incentives to the Company’s employees, officers, directors and/or consultants by providing them with the opportunity to purchase ordinary shares of the Company. Options granted under the Option Plan will become exercisable ratably over a period of three to five years or immediately in certain circumstances, commencing with the date of grant. The options generally expire no later than 10 years from the date of grant. Any options which are forfeited or canceled before expiration become available for future grants. 1 million Ordinary Shares are authorized for issuance under the 2003 Option Plan, of which 188,950 shares were available for future grant as of December 31, 2022. In 2007 a new option plan was approved under which the Company may grant stock options to the U.S. employees of the Company and its subsidiaries(the “2007 Option Plan”). Under the 2007 Option Plan , the Company may grant both qualified (for preferential tax treatment) and non-qualified stock options. In June 2013, the Option plan was extended for another period of ten years, until December 31, 2023. During the years 2019, 2020 and 2021, the Company did not grant any option to purchase shares. During the year 2022, the Company granted 800,937 option to purchase ordinary shares to certain officers and employees of the Company. 2. A summary of the Company’s stock option activity and related information is as follows: The estimated fair value of stock option awards was determined on the date of grant using the Black-Scholes option valuation model with the following weighted-average assumptions during the periods indicated: Year ended December 31, 2022 2021 Weighted Average Risk-free interest rate 2.84 % - Dividend yield 0 % - Weighted Average Volatility factor 74 % - Weighted Average Expected life of the options 6.64 - The expected volatility was based on the historical volatility of the Company’s stock. The expected term was based on the historical experience and based on Management estimate. The following table contains additional information concerning options granted under the existing stock-option plan: Year ended December 31 2022 2021 Number of options Weighted average exercise price Number of options Weighted average exercise price Outstanding at Beginning of year 21,388 $ 12.3 33,484 $ 23.1 Granted 800,937 $ 3.25 - $ - Exercised (1,650 ) $ 1.00 (4,496 ) $ 4.1 Canceled and forfeited (9,625 ) $ 3.79 (7,600 ) $ 22.2 Outstanding at end of year 811,050 $ 3.58 21,388 $ 12.3 Exercisable at end of year 213,597 $ 4.15 15,950 $ 12.8 A summary of the Company’s non-vested options granted to employees and changes during the year ended December 31, 2022 is presented below: Options Weighted- average grant-date fair value Non-vested as of December 31, 2021 5,438 $ 10.7 Granted 800,937 $ 3.18 Vested (199,297 ) $ 3.94 Forfeited and canceled (9,625 ) $ 17.43 Non-vested as of December 31, 2022 597,453 $ 3.33 As of December 31, 2022, there was $1,125 of unrecognized compensation cost related to non-vested stock-based compensation arrangements granted under the stock option plans, to be recognized over a weighted average period of approximately 3.58 years. The following table summarizes the allocation of the stock-based compensation: Year ended December 31, 2022 2021 Cost of revenues $ 17 $ 7 Research and development expenses 67 12 Selling and marketing expenses 7 7 General and administrative expenses 47 5 $ 138 $ 31 The options outstanding and exercisable as of December 31, 2022, have been separated into ranges of exercise prices as follows: Options outstanding Options Exercisable Range of exercise price Number outstanding as of December 31, 2022 Weighted average remaining contractual life (years) Weighted average exercise price Aggregate intrinsic value Number outstanding as of December 31, 2022 Weighted average remaining contractual life (years) Weighted average exercise price Aggregate intrinsic value $0.00-$20.00 801,800 6.58 $ 3.39 $ - 204,347 6.61 $ 3.43 $ - $20.00-$50.00 9,250 6.07 $ 20.00 - 9,250 6.07 $ 20.00 - 811,050 6.65 $ 3.58 $ - 213,597 6.58 $ 4.15 $ - The total intrinsic value of options exercised for the years ended December 31, 2022 and 2021 was $7 and $0, respectively. f. Warrants: Each of the Company's warrants entitles the holder to exercise such warrant for one ordinary share and does not confer upon such holder any rights as an ordinary shareholder until such holder exercises such holder’s warrants and acquires the Ordinary Shares. All Company warrants are classified as a component of shareholders’ equity because such warrants are free standing financial instruments that are legally detachable, separately exercisable, do not embody an obligation for the Company to repurchase its own shares, and permit the holders to receive a fixed number of Ordinary Shares upon exercise, requires physical settlement and do not provide any guarantee of value or return. The following table contains additional information concerning warrants activity for the years 2022 and 2021: Year ended December 31 2022 2021 Number of warrants Weighted average exercise price Number of warrants Weighted average exercise price Outstanding at Beginning of year 247,000 $ 17.07 247,000 $ 17.07 Issued 1,219,738 $ 4.96 - $ - Exercised 564,869 $ 3.08 - $ - Expired - $ - - $ - Outstanding at end of year 901,869 $ 10.06 247,000 $ 17.07 Set forth below is data regarding the range of exercise prices and expiration date for warrants outstanding at December 31, 2022: Exercise Price Number of warrants Outstanding Exercisable until $ 18.70 2,500 2025 $ 7.50 7,500 2026 $ 17.07 237,000 2027 $ 3.20 654,869 2029 901,869 g. Dividends: No dividends were declared in the reported periods. In the event that cash dividends are declared in the future, such dividends will be paid in NIS. The Company does not intend to distribute cash dividends in the foreseeable future.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
RELATED PARTY TRANSACTIONS	Dec. 31, 2022
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 11: RELATED PARTY TRANSACTIONS a. Mr. Trabelsi has served as the chief executive officer of the Company since June 1, 2012 until February 21, 2022. Mr. Trabelsi is the sole director of Sigma Wave, which is the controlling shareholder of the Company. On May 9, 2013, the general meeting of shareholders of the Company approved the payment of management fees to Mr. Trabelsi of $10.6 per month plus social benefits and an annual bonus of the greater of 2% of the Company’s annual net profit or 0.5% of annual revenues, but in no event greater than Mr. Trabelsi’s annual salary. b. As of December 31, 2022 and 2021, the Company accrued $86 and $103, respectively as expenses arising from related party management services. c. On April 29, 2012, the board of directors approved the recording of a floating charge on all of the Company’s assets in favor of the Mr. and Mrs. Trabelsi, unlimited in amount, in order to secure personal guarantees granted by them in favor of the Company to a bank and in order to secure loans that are given by them from time to time to the Company. As of December 31,2022, total loans were $166. These loans bear no interest and are not attached to any price index.

SEGMENTS, MAJOR CUSTOMERS AND G

SEGMENTS, MAJOR CUSTOMERS AND GEOGRAPHIC INFORMATION	12 Months Ended
SEGMENTS, MAJOR CUSTOMERS AND GEOGRAPHIC INFORMATION	Dec. 31, 2022
Segment Reporting [Abstract]
SEGMENTS, MAJOR CUSTOMERS AND GEOGRAPHIC INFORMATION	NOTE 12: SEGMENTS, MAJOR CUSTOMERS AND GEOGRAPHIC INFORMATION a. Summary information about segments: ASC 280, Segment Reporting, establishes standards for reporting information about operating segments. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision maker is its Chief Executive Officer. The company operates in three technologies segments or Strategic business units; e-Gov, IoT, and Cyber Security: e-Gov: Through the Company proprietary e-Government platforms and innovative solutions for traditional and biometrics enrollment, personalization, issuance and border control services, the Company has 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. IoT: The Company’s IoT products and solutions reliably identify, track and monitor people or objects in real time, enabling the customers to detect unauthorized movement of people, vehicles and other monitored objects. The Company provides all-in-one field proven IoT suite, accompanied with services specifically tailored to meet the requirements of an IoT solutions. The Company’s proprietary IoT suite of hybrid hardware, connectivity and software components are the foundation of these solutions and services. Cyber Security: The Company operates in the fields 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 and cyber security services. Year ended December 31, 2022 Cyber Security IoT e-Gov Total Revenues $ 1,384 $ 15,628 $ 637 $ 17,649 Operating loss 680 (3,993 ) (2,692 ) (6,005 ) Goodwill 1,075 2,229 3,722 7,026 Total Property and Equipment, net $ 30 $ 1,590 $ 50 $ 1,640 Year ended December 31, 2021 Cyber Security IoT e-Gov Total Revenues $ 1,634 $ 8,904 $ 1,729 $ 12,267 Operating loss 400 (3,004 ) (4,133 ) (6,737 ) Goodwill 1,075 2,229 3,722 7,026 Total Property and Equipment, net $ 47 $ 1,543 $ 214 $ 1,804 Following is a reconciliation of the operating income (loss) of the reportable segments to the data included in the statements of operations: Year ended December 31, 2022 2021 Operating loss Total operating loss of reportable segments $ (6,005 ) $ (6,737 ) Financial expenses, net (1,751 ) (3,396 ) Loss before income taxes $ (7,756 ) $ (10,133 ) b. Summary information about geographic areas: The following is a summary of revenues from external customers of the continued operations within geographic areas and data regarding property and equipment, net: Year ended December 31, 2022 2021 Property and Property and Total Revenues Equipment, net Total revenues Equipment, net Africa $ 374 $ - $ 1,586 $ - European countries 9,559 - 2,912 - South America - - 37 - United States 6,877 38 6,820 47 Israel 693 1,602 757 1,757 APAC 146 - 155 - $ 17,649 $ 1,640 $ 12,267 $ 1,804 - Revenues were attributed to countries based on the customer’s location. - Property and equipment were classified based on geographic areas in which such property and equipment items are held. c. Summary of revenues from external customers based on products and services: Year ended December 31, 2022 2021 Raw materials and equipment $ 302 $ 1,119 Electronic monitoring 11,614 6,393 Treatment programs 3,998 3,292 Maintenance, royalties and project management 1,735 1,463 $ 17,649 $ 12,267 d. Major customer data as a percentage of total sales: Year ended December 31, 2022 2021 Customer A 36 % - Customer B - 10 %

OTHER EXPENSE, NET

OTHER EXPENSE, NET	12 Months Ended
OTHER EXPENSE, NET	Dec. 31, 2022
Other Income and Expenses [Abstract]
OTHER EXPENSE, NET	NOTE 13: OTHER EXPENSE, NET Year ended December 31, 2022 2021 Doubtful debt provision $ 1,000 $ 3,000 Change in liability for future earn-out - 689 Other 138 685 Total other expense, net $ 1,138 $ 4,374 Doubtful debt provision The following is a summary of the accounts receivables allowance for doubtful accounts for the years ended December 31: Year ended December 31, 2022 2021 Balance at beginning of period $ 11,667 $ 8,667 Provision during the period 1,000 3,000 Balance at end of period $ 12,667 $ 11,667

FINANCIAL EXPENSES, NET

FINANCIAL EXPENSES, NET	12 Months Ended
FINANCIAL EXPENSES, NET	Dec. 31, 2022
Nonoperating Income (Expense) [Abstract]
FINANCIAL EXPENSES, NET	NOTE 14: FINANCIAL EXPENSES, NET Year ended December 31, 2022 2021 Financial expenses: Interest, bank charges and fees $ (1,770 ) $ (3,642 ) Exchange differences, net 19 246 Total financial expenses (1,751 ) (3,396 ) Financial income: Interest income - - Total financial income - - Total financial expenses, net $ (1,751 ) $ (3,396 )

Subsequent Events

Subsequent Events	12 Months Ended
Subsequent Events	Dec. 31, 2022
Subsequent Events [Abstract]
Subsequent Events	NOTE 15: SUBSEQUENT EVENTS a. On March 31, 2023, (the “Closing Date”), the Company completed a registered direct offering with a single accredited institutional investor 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 investor of the Company’s private warrants to purchase an aggregate of 1,517,615 of ordinary shares at an exercise price of $1.66 per share. The private warrants are immediately exercisable and expire five years from the Closing Date. In connection with the closing of these offerings, the Company agreed that certain existing remaining warrants to purchase up to an aggregate of 564,869 of its ordinary shares that were previously issued to such investor on July 27, 2022, at an exercise price of $3.08 per ordinary share, were amended so that the amended warrants will have an exercise price of $1.66 per share. These offerings were effected pursuant to the Securities Purchase Agreement, dated as of March 30, 2023, with such institutional investor.

SIGNIFICANT ACCOUNTING POLICI_2

SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
SIGNIFICANT ACCOUNTING POLICIES (Policies)	Dec. 31, 2022
Accounting Policies [Abstract]
Use of estimates	a. Use of estimates: The preparation of the financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of expenses during the reporting periods. Actual results could differ from those estimates. As applicable to these financial statements, the most significant estimates and assumptions include (i) Revenue Recognition; (ii) Allowance for Doubtful Accounts; (iii) Deferred Income Taxes and (iv) measurement of the fair value of intangible assets and goodwill.
Financial statements in U.S. dollars	b. Financial statements in U.S. dollars: Most of the revenues of the Company are received in U.S. dollars. In addition, a substantial portion of the costs of the Company are incurred in U.S. dollars. Therefore, management believes that the dollar is the currency of the primary economic environment in which the Company operate. Thus, the functional and reporting currency of the Company is the U.S. dollar. Transactions and balances denominated in U.S. dollars are presented at their original amounts. Monetary accounts denominated in currencies other than the dollar are re-measured into dollars in accordance with ASC No. 830, "Foreign Currency Matters". All transaction gains and losses from the re-measurement of monetary balance sheet items are reflected in the statements of operations as financial income or financial expenses as appropriate.
Principles of consolidation	c. Principles of consolidation: The consolidated financial statements include the accounts of the Company and its subsidiaries. Intercompany transactions and balances were eliminated upon consolidation. Profits from intercompany sales, not yet realized outside the group, were also eliminated.
Cash and cash equivalents	d. Cash and cash equivalents: The Company considers unrestricted short-term highly liquid investments originally purchased with maturities of three months or less to be cash equivalents. The Company has not held any cash equivalents during 2022 and 2021.
Restricted Cash	e. Restricted Cash: Restricted cash held in interest bearing saving accounts which are used as a security for the Company's Israeli facility leasehold bank guarantee, and as a security for ongoing terms of the contracts with existing customers and commercial tenders guarantees.
Allowance for doubtful accounts	f. Allowance for doubtful accounts: The allowance for doubtful accounts is determined with respect to specific amounts the Company has determined to be doubtful of collection. In determining the allowance for doubtful accounts, the Company considers, among other things, its past experience with such customers and the information available regarding such customers.
Inventories	g. Inventories: Inventories are stated at the lower of cost or net realizable value. Inventory write-offs are mainly provided to cover risks arising from slow-moving items or technological obsolescence. Cost is determined for all types of inventory using the moving average cost method.
Property and equipment	h. Property and equipment: Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is computed using the straight-line method, over the estimated useful lives, at the following annual rates: years Computers and peripheral equipment 3 Leased Products to Customers 5 Office furniture and equipment 5 - 17 Leasehold improvements Over the shorter of the term of the lease or the life of the asset
Intangible assets	i. Intangible assets: Intangible assets that are not considered to have an indefinite useful life are amortized using units of production and the straight-line basis over their estimated useful lives, as noted below. Recoverability of these assets is measured by a comparison of the carrying amount of the asset to the undiscounted future cash flows expected to be generated by the assets. If the assets are considered to be impaired, the amount of any impairment is measured as the difference between the carrying value and the fair value of the impaired assets. Intangible assets and their useful lives are as follows: Useful Life (in Years) Customers relationships & Other Between 4.5-13 (mainly 13) IP & Technology Between 4-15 (mainly 15) Capitalized software development costs Between 4-5 As of December 31, 2022, and 2021 no impairment losses were identified. Acquisition-related intangible assets: The Company accounts for its business combinations in accordance with ASC 805 “Business Combinations” and with ASC 350-20 “Goodwill and Other Intangible Assets” (“ASC 350-20”). ASC 805-10 specifies the accounting for business combinations and the criteria for recognizing and reporting intangible assets apart from goodwill. Acquisition-related intangible assets result from the Company’s acquisitions of businesses accounted for under the purchase method and consist of the value of identifiable intangible assets including developed software products, brand and patents, as well as goodwill. Goodwill is the amount by which the acquisition cost exceeds the fair values of identifiable acquired net assets on the date of purchase. Acquisition-related definite lived intangible assets are reported at cost, net of accumulated amortization.
Goodwill	j. Goodwill: The Company’s goodwill reflects the excess of the consideration paid or transferred including the fair value of contingent consideration over the fair values of the identifiable net assets acquired. The goodwill impairment test is performed by evaluating an initial qualitative assessment of the likelihood of impairment. If this step indicates that the qualitative assessment does not result in a more likely than not indication of impairment, no further impairment testing is required. If it does result in a more likely than not indication of impairment, the impairment test is performed. In step one of the impairment test, the Company compares the fair value of the reporting unit to the carrying value of the reporting unit. If the fair value of the reporting unit exceeds the carrying value of the net assets allocated to that unit, goodwill is not impaired, and no further testing is required. If the fair value is less than the carrying value of the reporting unit, then the second step of the impairment test is performed to measure the amount of the impairment. In the second step, the reporting unit’s fair value is allocated to all the assets and liabilities of the reporting unit, including any unrecognized intangible assets, in a hypothetical analysis that simulates the business combination principles to derive an implied goodwill value. If the implied fair value of the reporting unit’s goodwill is less than its carrying value, the difference is recorded as impairment. For the years ended December 31, 2022 and 2021 the Company performed an annual impairment analysis and no impairment losses have been identified.
Impairment of long-lived assets and intangible assets	k. Impairment of long-lived assets and intangible assets with definite useful life: The Company’s long-lived assets and intangible assets with definite useful life are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by the asset. If such asset is considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the asset exceeds the fair value of the asset.
Long lived assets held for sale	l. Long lived assets held for sale: The company accounted for its long lived assets held for sale under ASC 360-10 ("Impairment or disposal of Long-lived Assets"). Under management decision, the patents acquired under Alvarion Ltd. and Safend Ltd. acquisitions during 2016, were not intended for internal use by the Company, and thus accounted for as Long lived assets held for sale. During 2021 and 2022, following management decision, the Company elected to enter into engagements with several brokers for the purpose of marketing and sale of those patents. Realization costs of the patents are immaterial. For the years ended December 31, 2022 and 2021 the Company did not identify any triggers for impairment.
Accrued severance pay and severance pay fund	m. Accrued severance pay and severance pay fund: The liabilities of the Company for severance pay of its Israeli employees are calculated pursuant to Israel’s Severance Pay Law. Employees are entitled to one month’s salary for each year of employment, or portion thereof. The Company’s liability for all its employees is presented under “accrued severance pay”. The Company deposits on a monthly basis to severance pay funds and insurance policies. The value of these policies is presented as an asset on the Company’s balance sheet. The deposited funds include accrued income up to the balance sheet date. The deposited funds may be withdrawn only upon the fulfillment of the Company’s obligation pursuant to Israel’s Severance Pay Law or labor agreements. A defined contribution plan is a program that benefits an employee after termination of employment, under which the Company regularly makes fixed payments to a fund administered by a separate and independent entity so that the Company has no legal or constructive obligation to pay additional contributions if such fund does not contain sufficient assets to pay all employees the benefits to which they may be entitled relating to employee service in the current and prior periods. The fund assets are not included in the Company’s consolidated balance sheets. Severance expenses for the years ended December 31, 2022 and 2021 amounted to $360 and $385, respectively.
Revenue recognition	n. Revenue recognition: The Company and its subsidiaries generate their revenues from the sale of products, licensing, maintenance, royalties and long term contracts (including training and installation). The Company recognize revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers The Company measures revenue based upon the consideration specified in the client arrangement, and revenue is recognized when the performance obligations in the client arrangement are satisfied. A performance obligation is a promise in a contract to transfer a distinct service to the customer. The transaction price of a contract is allocated to each distinct performance obligation and recognized as revenue when or as, the customer receives the benefit of the performance obligation. Under ASC 606, revenue is recognized when a customer obtains control of promised services in an amount that reflects the consideration the Company expect to receive in exchange for those services. To achieve this core principle, the Company applies the following five steps: 1) Identify the contract with a customer A contract with a customer exists when (i) the Company enters into an enforceable contract with a customer that defines each party’s rights regarding the services to be transferred and identifies the payment terms related to these services, (ii) the contract has commercial substance and, (iii) the Company determines that collection of substantially all consideration for services that are transferred is probable based on the customer’s intent and ability to pay the promised consideration. The Company applies judgment in determining the customer’s ability and intention to pay, which is based on a variety of factors including the customer’s historical payment experience or, in the case of a new customer, published credit and financial information pertaining to the customer. 2) Identify the performance obligations in the contract Performance obligations promised in a contract are identified based on the services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the service either on its own or together with other resources that are readily available from third parties or from the Company, and are distinct in the context of the contract, whereby the transfer of the services is separately identifiable from other promises in the contract. To the extent a contract includes multiple promised services, the Company must apply judgment to determine whether promised services are capable of being distinct in the context of the contract. If these criteria are not met the promised services are accounted for as a combined performance obligation. 3) Determine the transaction price The transaction price is determined based on the consideration to which the Company will be entitled in exchange for transferring services to the customer. The Company evaluates whether a significant financing component exists when the Company recognizes revenue in advance of customer payments that occur over time. For example, some of the Company contracts include payment terms greater than one year from when we transfer control of goods and services to the Company customers and the receipt of the final payment for those goods and services. If a significant financing component exists, the Company classifies a portion of the transaction price as interest income, instead of recognizing all of the transaction price as revenue. The Company does not adjust the transaction price for the effects of financing if, at contract inception, the period between the transfer of control to a customer and final payment is expected to be one year or less. 4) Allocate the transaction price to performance obligations in the contract If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. However, if a series of distinct services that are substantially the same qualifies as a single performance obligation in a contract with variable consideration, the Company must determine if the variable consideration is attributable to the entire contract or to a specific part of the contract. Contracts that contain multiple performance obligations require an allocation of the transaction price based on management’s judgement. 5) Recognize revenue when or as the Company satisfies a performance obligation The Company satisfies performance obligations either over time or at a point in time. Revenue is recognized at the time the related performance obligation is satisfied by transferring a promised good or service to a customer. Nature of goods and services The following is a description of the Company’s goods and services from which the Company generates revenue, as well as the nature, timing of satisfaction of performance obligations, and significant payment terms for each, as applicable: Software Maintenance and Support Services Revenue Software maintenance and support services contracts are sold in conjunction with the Company’s software products for its e-Gov, IoT and Connectivity, and Cyber Security revenue streams. The contract terms for software maintenance and support span one five The Company recognizes revenue from fixed-price service and maintenance contracts using the input method of accounting. Under the input method, revenue is recognized on the basis of an entity’s efforts toward satisfying a performance obligation. The Company recognizes revenue from maintenance and support services provided pursuant to the time elapsed under such contracts, as that is when the performance obligation to the Company customers under such arrangements is fulfilled. Perpetual Software License Revenue The Company generates revenue from the sales of perpetual software licenses for its Cyber Security and e-Gov segments, including sales for its Magna_DL, Magna_VL, Magna_Passport, and Magna_ID software products. The intellectual property rights for usage of these products are transferred to the customer at the time of purchase and the software does not require implementation services, ongoing maintenance and support, or other adaptions in order to maintain utility. In arrangements where ongoing services are not essential to the functionality of the delivered software, the Company recognizes perpetual software license revenue when the license agreement has been approved and the software has been delivered. The Company can identify each party’s rights, payment terms, and commercial substance of the content. Where applicable, the Company identifies multiple performance obligations and record as revenue as the performance obligations are fulfilled based on the adjusted market assessment approach. Annual Software License Revenue The Company generates revenue from the sales of time-based software licenses for certain of its software products. The intellectual property rights for access to these products are transferred to the customer for contract terms of one year and the software requires ongoing maintenance, support, or other adaptions in order to maintain utility. The Company recognizes revenue over time using the input method for its annual software licenses when ongoing services are determined to be essential to the functionality of the delivered software. The license along with the any customization services are transferred to the Company customers pursuant to the time elapsed under such contracts, as that is when the Company performance obligation to its customers under such arrangements is fulfilled. System Design Revenue System design revenue relate to services provided to governments and national agencies in the early stages of a new project including incumbent system data information extraction, customer interviewing and specification mapping, architecture and software design, secure credential design, project management and planning, data migration design, project operation planning, training, assimilation, and operational processes optimization for the Company’s e-Gov and IoT solutions. The Company recognizes revenue from its system design services using the input method of accounting. Under the input method, revenue is recognized on the basis of an entity’s efforts or inputs toward satisfying a performance obligation. The Company recognizes revenue from system design services provided pursuant to time-and-materials based contracts as the services are performed, as that is when the Company performance obligation to its customers under such arrangements is fulfilled. Where applicable, the Company identifies multiple performance obligations and record as revenue as the performance obligations are fulfilled based on the using the expected cost plus a margin approach. Implementation and System Deployment Revenue Implementation and system deployment revenue relate to services provided to governments and national agencies typically after the design stage is concluded including infrastructure setup and deployment, software and chip design development, software customizations, purchase, and deployment of hardware and necessary system components, system integration and implementation, process engineering, customer training, system quality assurance testing, load balancing and local environment optimizations, and operational system launch for the Company’s e-Gov and IoT solutions. The Company recognizes revenue from its implementation and system deployment revenue using the input method of accounting. Under the input method, revenue is recognized on the basis of an entity’s efforts or inputs toward satisfying a performance obligation. The Company recognizes revenue from implementation and system deployment services provided pursuant to time-and-materials based contracts as the services are performed, as that is when the Company performance obligation to its customers under such arrangements is fulfilled. Where applicable, the Company identifies multiple performance obligations and record as revenue as the performance obligations are fulfilled based on the using the residual approach. Procurement of Secure Document Consumables Revenue The Company procures secure document consumables for its e-Gov government customers which are needed to issue secure documents after a project deployment is complete and a system in actively running and operational. These consumables are manufactured generally at secure printing facilities utilizing proprietary and customized designs, which the Company has developed during the project design stage, to provide multiple layers of security preventing falsification of documents. These consumables include base card stock, security laminates, holograms, passive RFID chip inlays, passport booklets, secure chip cards, and various other secure credentialing necessities. The Company recognizes revenue on procurement of secure document consumables products when the customer has control of the product, which is determined to be at the point in time when the products are delivered. Where applicable, the Company identifies multiple performance obligations and record as revenue as the performance obligations are fulfilled based on their stated prices within the contract. Wireless & RFID Products Revenue The Company’s wireless products include solutions for carrier wi-fi, enterprise connectivity, smart city, smart hospitality, connected campuses and connected events which enhance productivity and performance. The Company’s RFID products include asset tags which provide real-time asset loss prevention, inventory management, and personnel/asset tracking and vehicle tags which provide long-range vehicle ID for parking and fleet management, access control, asset loss prevention at airports, gated communities, truck and bus terminals, employee parking lots, hospitals, industrial facilities, railroads, mines and military installations. The Company recognizes revenue on wireless and RFID products when the customer has control of the equipment, which is determined to be at the point in time when the products are shipped. Where applicable, the Company identifies multiple performance obligations and record as revenue as the performance obligations are fulfilled based on their stated prices within the contract. Electronic Monitoring Services Revenue Electronic monitoring services represent fees the Company collects through the sale or rental of its PureSecurity Suite of products, which include the PureMonitor, PureTrack, PureTag, PureCom, PureBeacon, and SCRAM devices. These devices identify, track, and monitor people or objects in real time through the Company’s GPS monitoring, home monitoring, and alcohol tracking solutions. The Company recognizes revenue on the sale of electronic monitoring products when the customer has control of the equipment, which is determined to be at the point in time when the products are shipped. For devices which are rented and for electronic monitoring services provided, the Company recognizes revenue pursuant to the time elapsed for such contracts, as that is when the Company performance obligation to its customers under such arrangements is fulfilled. The Company customers typically pay for these services based on a net rate per day per individual or on a fixed monthly rate. Treatment Services Revenue Treatment services revenue is an extension of the Company’s electronic monitoring services. The Company provides individuals who have completed or are near the end of their sentence with the resources necessary to productively transition back into society. Through the Company daily reporting centers, we provide criminal justice programs and reentry services to help reduce recidivism which include case management, substance abuse education, vocational training, parental support, employment readiness and job placement. These activities are considered to be a bundle of services which are a part of a series of distinct services recognized over time. The Company recognizes revenue from its treatment services using the input method of accounting. Under the input method, revenue is recognized revenue on the basis of an entity’s efforts or inputs toward satisfying a performance obligation. The Company recognizes revenue from implementation and system deployment services provided pursuant to time-and-materials based contracts as the services are performed, as that is when the Company performance obligation to its customers under such arrangements is fulfilled. Where applicable, the Company identify multiple performance obligations and record as revenue as the performance obligations are fulfilled based on the using the expected cost plus a margin approach. Professional Services Revenue The Company offers professional services for the Company’s Cyber Security software products, which includes an on-site / remote visit by a specialist technician to assist with installation, deployment and configuration. The Company recognizes revenue from professional services upon completion of the service performed for the customer. As these services are completed during a single onsite visit, revenue is recognized at a point in time of such onsite visit. Disaggregation of revenue In the following table, revenue is disaggregated by major geographic region and timing of revenue recognition. The table also includes a reconciliation of the disaggregated revenue with the reportable segments: Year ended December 31, 2022 Cyber Security IoT e-Gov Total Major geographic areas Africa $ - $ - $ 374 $ 374 European countries 273 9,023 263 9,559 South America - - - - United States 351 6,526 - 6,877 Israel 614 79 - 693 APAC 146 - - 146 Total revenue $ 1,384 $ 15,628 $ 637 $ 17,649 Timing of revenue recognition Products and services transferred over time $ 498 $ 11,697 $ 335 $ 12,530 Products transferred at a point in time 886 3,931 302 5,119 Total revenue $ 1,384 $ 15,628 $ 637 $ 17,649 Year ended December 31, 2021 Cyber Security IoT e-Gov Total Major geographic areas Africa $ - $ - $ 1,586 $ 1,586 European countries 527 2,242 143 2,912 South America 1 36 - 37 United States 410 6,410 - 6,820 Israel 648 109 - 757 APAC 48 107 - 155 Total revenue $ 1,634 $ 8,904 $ 1,729 $ 12,267 Timing of revenue recognition Products and services transferred over time $ 44 $ 7,176 $ 1,428 $ 8,648 Products transferred at a point in time 1,590 1,728 301 3,619 Total revenue $ 1,634 $ 8,904 $ 1,729 $ 12,267 Transaction price allocated to the remaining performance obligations Remaining performance obligations represent the transaction price of system deployment, service and maintenance contracts for which work has not been performed as of the period end date. As of December 31, 2022, the aggregate amount of the transaction price allocated to remaining performance totals $33.13 million. The Company expects approximately 43% of remaining performance obligations to be recognized into revenue within the next 12 months, with the remaining 57% recognized thereafter. The Company applies the practical expedient in paragraph ASC 606-10-50-14 and does not disclose information about remaining performance obligations that have original expected durations of one-year or less. We apply the transition practical expedient in paragraph ASC 606-10-65-1(f)(3) and do not disclose the amount of the transaction price allocated to the remaining performance obligations and an explanation of when the Company expects to recognize that amount as revenue. Additionally, applying the practical expedient in paragraph ASC 340-40-25-4, the Company recognizes the incremental costs of obtaining contracts (i.e., commissions) as an expense when incurred if the amortization period of the assets that the Company otherwise would have recognized is one-year or less.
Research and development costs and software development costs	o. Research and development costs and software development costs: Research and development costs are expensed as incurred. Software development costs eligible for capitalization are accounted for in accordance with 985-20 Software - Costs of Software to be Sold, Leased or Marketed. Capitalization of software development costs for products to be sold to third parties begins upon the establishment of technological feasibility and ceases when the product is available for general release. Amortization is calculated and provided over the estimated economic life of the software, using the greater of (i) straight-line method or if applicable (ii) the ratio that current gross revenues for a product bear to the total of current and anticipated future gross revenues for that product. Amortization commences when developed software is available for general release to clients. The estimated useful life of capitalized software development costs is 5 years.
Income taxes	p. Income taxes: The Company and its subsidiaries account for income taxes in accordance with ASC Topic 740, “Income Taxes”. This Statement prescribes the use of the liability method whereby deferred tax asset and liability account balances are determined based on differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws, that will be in effect when the differences are expected to reverse. The Company and its subsidiaries provide a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable value. The Company accounts for uncertain tax positions in accordance with ASC Topic 740-10, which prescribes detailed guidance for the financial statement recognition, measurement and disclosure of uncertain tax positions recognized in an enterprise’s financial statements. According to ASC Topic 740-10, tax positions must meet a more-likely-than-not recognition and measurement threshold. The Company’s accounting policy is to classify interest and penalties relating to uncertain tax positions under income taxes, however the Company did not recognize such items in its fiscal 2022 and 2021 financial statements.
Concentrations of credit risk	q. Concentrations of credit risk: Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, restricted cash deposits and trade receivables. The Company’s trade receivables are derived from sales to customers located primarily in Europe, Africa, the United States and South America. The Company performs ongoing credit evaluations of its customers’ financial condition. The allowance for doubtful accounts is determined with respect to specific debts that the Company has determined to be doubtful of collection. Cash and cash equivalents and restricted cash deposits are deposited with major banks in Israel and the United States. Management believes that such financial institutions are financially sound and, accordingly, minimal credit risk exists with respect to these financial instruments. The Company has no significant off-balance-sheet concentration of credit risk.
Concentrations of suppliers	r. Concentrations of suppliers: 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
Basic and diluted earnings per share	s. Basic and diluted earnings per share: Basic earnings per share are computed based on the weighted average number of ordinary shares outstanding during each year. Diluted earnings per share are computed based on the weighted average number of ordinary shares outstanding during each year, plus the dilutive potential of stock options and warrants outstanding during the year using the treasury stock method. The numbers of potential shares from the conversion of options and warrants that have been excluded from the calculation were 1.713 million and 0.288 million for the years ended December 31, 2022 and 2021, respectively
Fair value of financial instruments	t. Fair value of financial instruments: The Company applies ASC 820, "Fair Value Measurements and Disclosures" ("ASC 820"), pursuant to which fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the "exit price") in an orderly transaction between market participants at the measurement date. In determining fair value, the Company uses various valuation approaches. ASC 820 establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company's assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is broken down into three levels based on the inputs as follows: Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access at the measurement date. Level 2 - Valuations based on one or more quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The carrying amounts of cash and cash equivalents, restricted cash, short-term bank deposits, other accounts receivable, trade payable, and other accounts payable and accrued expenses approximate their fair values due to the short-term maturities of such instruments.
Accounting for stock-based compensation	u. Accounting for stock-based compensation: Stock-based compensation, including grants of stock options, is recognized in the consolidated statement of operations over the requisite service period as an operating expense, based on the fair value of the award on the date of grant. The fair value of stock-based compensation is estimated using an option-pricing model. The Company elected to recognize compensation costs for awards conditioned only on continued service that have a graded vesting schedule using the straight-line method and to value the awards based on the single-option award approach. The Company accounts for forfeitures as they occur.
Treasury Shares	v. Treasury Shares: Treasury shares are recorded at cost and presented as a reduction of shareholders' equity.
Leases	w. Leases: The Company adopted ASU 2016-02, Leases (“Topic 842” or “ASC 842”) on January 1, 2022, using the modified retrospective approach, by applying the new standard to all leases existing at the date of initial application. The standard requires lessees to recognize almost all leases on the balance sheet as a right-of-use asset and a lease liability and requires leases to be classified as either an operating or a finance type lease. The standard excludes leases of intangible assets or inventory. Leases with a term of 12 months or less can be accounted for in a manner similar to the accounting for operating leases under ASC 840. The ASC 842 requires lessors to account for leases using an approach that is substantially equivalent to ASC 840 for sales-type leases, direct financing leases and operating leases. The Company leases real estate and storage areas, which are all classified as operating leases. In addition to rent payments, the leases may require the Company to pay for insurance, maintenance, and other operating expenses. The Company determines if an arrangement is a lease at inception. Lease classification is governed by five criteria in ASC 842-10-25-2. If any of these five criteria is met, the Company classifies the lease as a finance lease. Otherwise, the Company classifies the lease as an operating lease. Operating leases are included in operating lease right-of-use (“ROU”) assets and operating lease liabilities in the consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating and finance lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. The Company uses its incremental borrowing rate based on the information available at the commencement date to determine the present value of the lease payments. Operating lease expenses are recognized on a straight-line basis over the lease term. Exchange rate differences related to lease liabilities are recognized as finance income or expense. Several of the Company’s leases include options to extend the lease. For purposes of calculating lease liabilities, lease terms include options to extend the lease when it is reasonably certain that the Company will exercise such options. The Company's ROU assets are reviewed for impairment in accordance with ASC 360, "Property, Plant and Equipment" ("ASC 360"), whenever events in circumstances indicate that the carrying amount of an asset may not be recoverable. The ASC 842 provides practical expedients for an entity’s ongoing accounting. The Company elected the short-term lease recognition exemption for all leases with a term shorter than 12 months. This means that for those leases, the Company does not recognize ROU assets or lease liabilities but recognizes lease expenses over the lease term on a straight-line basis. The Company also elected to not separate lease and non-lease components for all of the Company’s leases. Upon adoption as of January 1, 2021, the Company recorded right-of-use leased assets and corresponding liabilities of $1200. See Note 8 for further information on leases.
Reclassification	x. Reclassification Certain comparative figures have been reclassified to conform to the current year presentation. Such reclassifications did not have any significant impact on the Company's equity, net loss or cash flows.
Recent accounting pronouncements	y. Recent accounting pronouncements ASU 2019-12, Income Taxes In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The amendments in this ASU simplify the accounting for income taxes, eliminates certain exceptions to the general principles in Topic 740 and clarifies certain aspects of the current guidance to improve consistent application among reporting entities. ASU 2019-12 is effective is effective for annual periods beginning after January 1, 2022 January 1, 2023, and early adoption was permitted. ASU 2020-06, Debt - Debt with Conversion and Other Options, In August 2020, the FASB issued ASU No. 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging Contracts in Entity s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity s Own Equity. ASU 2020-06 will simplify the accounting for convertible instruments by reducing the number of accounting models for convertible debt instruments and convertible preferred stock. Limiting the accounting models results in fewer embedded conversion features being separately recognized from the host contract as compared with current GAAP. Convertible instruments that continue to be subject to separation models are (1) those with embedded conversion features that are not clearly and closely related to the host contract, that meet the definition of a derivative, and that do not qualify for a scope exception from derivative accounting and(2) convertible debt instruments issued with substantial premiums for which the premiums are recorded as paid-in capital. ASU 2020-06 also amends the guidance for the derivatives scope exception for contracts in an entity’s own equity to reduce form-over-substance-based accounting conclusions. ASU 2020-06 is effective for interim and annual periods beginning after January 1, 2024, and early adoption was permitted. ASU No. 2016-13, Financial Instruments – Credit Losses, In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”) which replaces the current incurred loss methodology with an expected loss methodology which is referred to as the current expected credit loss (“CECL”) methodology. The measurement of credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loans receivables and trade accounts receivables and held-to-maturity debt securities. It also applies to off-balance sheet credit exposures not 842 Other new pronouncements issued but not effective as of December 31, 2022 are not expected to have a material impact on the Company’s consolidated financial statements.

SIGNIFICANT ACCOUNTING POLICI_3

SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
SIGNIFICANT ACCOUNTING POLICIES (Tables)	Dec. 31, 2022
Accounting Policies [Abstract]
Schedule of Depreciation of Property and Equipment	years Computers and peripheral equipment 3 Leased Products to Customers 5 Office furniture and equipment 5 - 17 Leasehold improvements Over the shorter of the term of the lease or the life of the asset
Schedule of Intangible Assets and their Useful Lives	Useful Life (in Years) Customers relationships & Other Between 4.5-13 (mainly 13) IP & Technology Between 4-15 (mainly 15) Capitalized software development costs Between 4-5
Schedule of disaggregation of revenue by major geographic region and timing of revenue recognition	Year ended December 31, 2022 Cyber Security IoT e-Gov Total Major geographic areas Africa $ - $ - $ 374 $ 374 European countries 273 9,023 263 9,559 South America - - - - United States 351 6,526 - 6,877 Israel 614 79 - 693 APAC 146 - - 146 Total revenue $ 1,384 $ 15,628 $ 637 $ 17,649 Timing of revenue recognition Products and services transferred over time $ 498 $ 11,697 $ 335 $ 12,530 Products transferred at a point in time 886 3,931 302 5,119 Total revenue $ 1,384 $ 15,628 $ 637 $ 17,649 Year ended December 31, 2021 Cyber Security IoT e-Gov Total Major geographic areas Africa $ - $ - $ 1,586 $ 1,586 European countries 527 2,242 143 2,912 South America 1 36 - 37 United States 410 6,410 - 6,820 Israel 648 109 - 757 APAC 48 107 - 155 Total revenue $ 1,634 $ 8,904 $ 1,729 $ 12,267 Timing of revenue recognition Products and services transferred over time $ 44 $ 7,176 $ 1,428 $ 8,648 Products transferred at a point in time 1,590 1,728 301 3,619 Total revenue $ 1,634 $ 8,904 $ 1,729 $ 12,267

OTHER CURRENT ASSETS (Tables)

OTHER CURRENT ASSETS (Tables)	12 Months Ended
OTHER CURRENT ASSETS (Tables)	Dec. 31, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Schedule of Other Current Assets	December 31, 2022 2021 Prepaid expenses $ 224 $ 209 Advances to suppliers 337 323 Government institutions 740 983 Guaranty held by customer 621 - Other 317 84 $ 2,239 $ 1,599

INVENTORIES, NET (Tables)

INVENTORIES, NET (Tables)	12 Months Ended
INVENTORIES, NET (Tables)	Dec. 31, 2022
Inventory Disclosure [Abstract]
Schedule of Inventory, Net	December 31, 2022 2021 Raw materials, parts and supplies $ 1,726 $ 1,947 Finished products 1,685 1,614 $ 3,411 $ 3,561

PROPERTY AND EQUIPMENT, NET (Ta

PROPERTY AND EQUIPMENT, NET (Tables)	12 Months Ended
PROPERTY AND EQUIPMENT, NET (Tables)	Dec. 31, 2022
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment, Net	December 31, 2022 2021 Cost: Computers and peripheral equipment $ 3,206 $ 3,040 Office furniture and equipment 852 850 Trade Equipment 42 42 Leasehold improvements 210 210 Equipment in lease 2,890 2,534 7,200 6,676 Accumulated depreciation: Computers and peripheral equipment 2,855 2,729 Office furniture and equipment 760 735 Trade Equipment 39 39 Leasehold improvements 198 197 Equipment in lease 1,708 1,172 5,560 4,872 Depreciated cost $ 1,640 $ 1,804

OTHER INTANGIBLE ASSETS, NET (T

OTHER INTANGIBLE ASSETS, NET (Tables)	12 Months Ended
OTHER INTANGIBLE ASSETS, NET (Tables)	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Finite-Lived Intangible Assets	December 31, 2022 December 31, 2021 Carrying Accumulated Net Book Carrying Accumulated Net Book Customers relationships & Other $ 8,734 $ 8,112 $ 622 $ 8,734 $ 7,798 $ 936 IP & Technology 7,019 4,898 2,121 7,019 4,524 2,495 Capitalized software development costs 9,614 6,740 2,874 8,001 5,822 2,179 $ 25,367 $ 19,750 $ 5,617 $ 23,754 $ 18,144 $ 5,610

ACCRUED EXPENSES AND OTHER LI_2

ACCRUED EXPENSES AND OTHER LIABILITIES (Tables)	12 Months Ended
ACCRUED EXPENSES AND OTHER LIABILITIES (Tables)	Dec. 31, 2022
Accrued Liabilities and Other Liabilities [Abstract]
Schedule of Accrued Expenses and Other Liabilities	December 31, 2022 2021 Accrued management services $ 86 $ 86 Professional services 202 206 Facilities - 136 Legal contingent liability - 67 Legal service providers - 28 Authorities - 393 Other accrued expenses 181 643 $ 469 $ 1,559

COMMITMENTS AND CONTINGENT LI_2

COMMITMENTS AND CONTINGENT LIABILITIES (Tables)	12 Months Ended
COMMITMENTS AND CONTINGENT LIABILITIES (Tables)	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Schedule of operating leases expenses	Year ended December 31, 2022 2021 The components of lease expense were as follows: Operating leases expenses $ 475 $ 356 Cash flow information related to operating leases: Cash used in operating activities $ 502 $ 303 Non-cash activity - Right of use assets obtained in exchange for new operating lease liabilities $ - $ 1,200
Schedule of supplemental information related to operating leases	December 31, 2022 2021 Supplemental information related to operating leases, including location of amounts reported in the accompanying consolidated balance sheets, follows: Other assets - Right-of-Use assets $ 1,200 $ 1,200 Accumulated amortization 716 318 Operating lease Right-of-Use assets, net $ 484 $ 882 Lease liabilities – current - accrued expenses and other liabilities $ 381 $ - Lease liabilities – noncurrent 108 925 Total operating lease liabilities $ 489 $ 925 Weighted average remaining lease term in years 1.2 Weighted average annual discount rate 9 %
Schedule of Future Minimum Payments under Operating Leases	2023 $ 440 2024 103 2025 - Total operating lease payments 543 Less: imputed interest (54 ) Present value of lease Liabilities $ 489

INCOME TAX (Tables)

INCOME TAX (Tables)	12 Months Ended
INCOME TAX (Tables)	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Schedule of Deferred Tax Assets and Liabilities	December 31, 2022 2021 Operating loss carry forwards $ 21,362 $ 20,150 Reserves and allowances 4,475 4,206 Net deferred tax assets before valuation allowance 25,837 24,356 Valuation allowance (25,414 ) (23,797 ) Net deferred tax assets 423 559 Deferred income taxes consist of the following: Domestic 20,867 19,521 Valuation allowance (20,444 ) (18,963 ) Net deferred tax assets 423 558 Foreign 4,970 4,835 Valuation allowance (4,970 ) (4,835 ) $ - $ -
Schedule of Income (Loss) before Income Tax	Year ended December 31, 2022 2021 Domestic $ (7,013 ) $ (10,616 ) Foreign (743 ) 483 $ (7,756 ) $ (10,133 )
Schedule of Effective Income Tax Reconciliation	Year ended December 31, 2022 2021 Loss before income tax, as reported in the consolidated statements of operations $ (7,756 ) $ (10,133 ) Statutory tax rate in Israel 23 % 23 % Theoretical tax benefit (1,784 ) (2,331 ) Current year carryforward losses and other differences for which a valuation allowance was recorded 1,264 1,438 Changes in valuation allowance - - Offset of Other non-current assets (accounted for as DTA element) (79 ) (56 ) Changes in foreign currency exchange rate and other differences 481 788 Non-deductible expenses and other differences (181 ) 166 Actual income tax expense (benefit) $ (299 ) $ 5

SHARE CAPITAL (Tables)

SHARE CAPITAL (Tables)	12 Months Ended
SHARE CAPITAL (Tables)	Dec. 31, 2022
Class of Stock [Line Items]
Schedule of stock option awards of grant Black-Scholes option	Year ended December 31, 2022 2021 Weighted Average Risk-free interest rate 2.84 % - Dividend yield 0 % - Weighted Average Volatility factor 74 % - Weighted Average Expected life of the options 6.64 -
Schedule of stock option activity	Year ended December 31 2022 2021 Number of options Weighted average exercise price Number of options Weighted average exercise price Outstanding at Beginning of year 21,388 $ 12.3 33,484 $ 23.1 Granted 800,937 $ 3.25 - $ - Exercised (1,650 ) $ 1.00 (4,496 ) $ 4.1 Canceled and forfeited (9,625 ) $ 3.79 (7,600 ) $ 22.2 Outstanding at end of year 811,050 $ 3.58 21,388 $ 12.3 Exercisable at end of year 213,597 $ 4.15 15,950 $ 12.8
Schedule of Non-vested Option Activity	Options Weighted- average grant-date fair value Non-vested as of December 31, 2021 5,438 $ 10.7 Granted 800,937 $ 3.18 Vested (199,297 ) $ 3.94 Forfeited and canceled (9,625 ) $ 17.43 Non-vested as of December 31, 2022 597,453 $ 3.33
Schedule of allocation of the stock-based compensation	Year ended December 31, 2022 2021 Cost of revenues $ 17 $ 7 Research and development expenses 67 12 Selling and marketing expenses 7 7 General and administrative expenses 47 5 $ 138 $ 31
Schedule of Options Outstanding and Exercisable	Options outstanding Options Exercisable Range of exercise price Number outstanding as of December 31, 2022 Weighted average remaining contractual life (years) Weighted average exercise price Aggregate intrinsic value Number outstanding as of December 31, 2022 Weighted average remaining contractual life (years) Weighted average exercise price Aggregate intrinsic value $0.00-$20.00 801,800 6.58 $ 3.39 $ - 204,347 6.61 $ 3.43 $ - $20.00-$50.00 9,250 6.07 $ 20.00 - 9,250 6.07 $ 20.00 - 811,050 6.65 $ 3.58 $ - 213,597 6.58 $ 4.15 $ -
Schedule of Warrants Activity	Year ended December 31 2022 2021 Number of warrants Weighted average exercise price Number of warrants Weighted average exercise price Outstanding at Beginning of year 247,000 $ 17.07 247,000 $ 17.07 Issued 1,219,738 $ 4.96 - $ - Exercised 564,869 $ 3.08 - $ - Expired - $ - - $ - Outstanding at end of year 901,869 $ 10.06 247,000 $ 17.07
Schedule of range of exercise prices and expiration date for warrants outstanding	Exercise Price Number of warrants Outstanding Exercisable until $ 18.70 2,500 2025 $ 7.50 7,500 2026 $ 17.07 237,000 2027 $ 3.20 654,869 2029 901,869

SEGMENTS, MAJOR CUSTOMERS AND_2

SEGMENTS, MAJOR CUSTOMERS AND GEOGRAPHIC INFORMATION (Tables)	12 Months Ended
	Dec. 31, 2022
Segment Reporting [Abstract]
Schedule of segment reporting information, by segment	Year ended December 31, 2022 Cyber Security IoT e-Gov Total Revenues $ 1,384 $ 15,628 $ 637 $ 17,649 Operating loss 680 (3,993 ) (2,692 ) (6,005 ) Goodwill 1,075 2,229 3,722 7,026 Total Property and Equipment, net $ 30 $ 1,590 $ 50 $ 1,640 Year ended December 31, 2021 Cyber Security IoT e-Gov Total Revenues $ 1,634 $ 8,904 $ 1,729 $ 12,267 Operating loss 400 (3,004 ) (4,133 ) (6,737 ) Goodwill 1,075 2,229 3,722 7,026 Total Property and Equipment, net $ 47 $ 1,543 $ 214 $ 1,804
Schedule of reconciliation of operating profit (loss) from segments to consolidated	Year ended December 31, 2022 2021 Operating loss Total operating loss of reportable segments $ (6,005 ) $ (6,737 ) Financial expenses, net (1,751 ) (3,396 ) Loss before income taxes $ (7,756 ) $ (10,133 )
Schedule of external customer revenues by geographic area	Year ended December 31, 2022 2021 Property and Property and Total Revenues Equipment, net Total revenues Equipment, net Africa $ 374 $ - $ 1,586 $ - European countries 9,559 - 2,912 - South America - - 37 - United States 6,877 38 6,820 47 Israel 693 1,602 757 1,757 APAC 146 - 155 - $ 17,649 $ 1,640 $ 12,267 $ 1,804
Schedule of revenues by external customers by products and services	Year ended December 31, 2022 2021 Raw materials and equipment $ 302 $ 1,119 Electronic monitoring 11,614 6,393 Treatment programs 3,998 3,292 Maintenance, royalties and project management 1,735 1,463 $ 17,649 $ 12,267
Schedule of major customers, percent of total sales	Year ended December 31, 2022 2021 Customer A 36 % - Customer B - 10 %

OTHER EXPENSE, NET (Tables)

OTHER EXPENSE, NET (Tables)	12 Months Ended
OTHER EXPENSE, NET (Tables)	Dec. 31, 2022
Other Income and Expenses [Abstract]
Schedule of Other (Income) Expenses	Year ended December 31, 2022 2021 Doubtful debt provision $ 1,000 $ 3,000 Change in liability for future earn-out - 689 Other 138 685 Total other expense, net $ 1,138 $ 4,374
Schedule of Allowance for Doubtful Accounts	Year ended December 31, 2022 2021 Balance at beginning of period $ 11,667 $ 8,667 Provision during the period 1,000 3,000 Balance at end of period $ 12,667 $ 11,667

FINANCIAL EXPENSES, NET (Tables

FINANCIAL EXPENSES, NET (Tables)	12 Months Ended
FINANCIAL EXPENSES, NET (Tables)	Dec. 31, 2022
Nonoperating Income (Expense) [Abstract]
Schedule of Financial (Expenses), Net	Year ended December 31, 2022 2021 Financial expenses: Interest, bank charges and fees $ (1,770 ) $ (3,642 ) Exchange differences, net 19 246 Total financial expenses (1,751 ) (3,396 ) Financial income: Interest income - - Total financial income - - Total financial expenses, net $ (1,751 ) $ (3,396 )

GENERAL (Details)

GENERAL (Details) - USD ($) $ / shares in Units, $ in Thousands		1 Months Ended		12 Months Ended
	Mar. 01, 2022	Mar. 30, 2023	Feb. 28, 2021	Dec. 31, 2022	Dec. 31, 2021	Jul. 27, 2022	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Accumulated deficit				$ 102,926	$ 95,469
Net cash used in operating activities				4,654	9,413
Cash, cash equivalents and restricted cash				4,505	4,604		$ 3,952
Net working capital				21,051
Amount of secured financing									$ 20,000
Remaining available secured financing								$ 6,000
Amount raised from private equity placement			$ 3,200
Gross proceeds of subordinated debt			$ 12,000		$ 12,000
Amount of direct offering cost	$ 4,650,000
Warrant issued purchase of ordinary shares	313,000					564,869
Pre-funded warrant issued purchase of ordinary shares	440,159
Warrants exercise price	$ 0.0001
Concurrent private placement of warrant to purchase ordinary shares	564,869
Concurrent private placement of exercise price	$ 7					$ 3.08
Subsequent Event [Member]
Amount of direct offering cost		$ 2,400,000
Warrant issued purchase of ordinary shares		485,000
Pre-funded warrant issued purchase of ordinary shares		1,032,615
Warrants exercise price		$ 0.00001
Concurrent private placement of warrant to purchase ordinary shares		1,517,615
Concurrent private placement of exercise price		$ 1.66
Secured Credit Facility [Member] \| Fortress Investment Group [Member]
Remaining available secured financing				$ 6,000

GENERAL - Senior Secured Credit

GENERAL - Senior Secured Credit Facility and subordinated Debt (Details) $ / shares in Units, $ in Thousands	1 Months Ended	12 Months Ended
	Feb. 28, 2021 USD ($)	Dec. 31, 2022 USD ($) $ / shares shares	Dec. 31, 2021 USD ($)	Dec. 31, 2019 USD ($)	Jun. 30, 2021 USD ($)	Oct. 26, 2018 USD ($)
Line of Credit Facility [Line Items]
Stock issued during period, value		$ 5,846
Gross proceeds of subordinated debt	$ 12,000		$ 12,000
Subordinated promissory note term			2 years
Consideration unsecured subordinated promissory note		211	$ 8,945
Subordinated Debt		$ 15,633
Certain Institutional Investor [Member]
Line of Credit Facility [Line Items]
Aggregate principal amount	$ 7,000				$ 5,000
Consideration unsecured subordinated promissory note			$ 12,000
Fortress [Member]
Line of Credit Facility [Line Items]
Initial warrants received by investor \| shares		25,000
Additional warrants \| shares		75,000
Stock issued during period, shares \| shares		106,705
Stock issued during period, value		$ 200
Sale of stock, price per share \| $ / shares		$ 1.87
Warrants and rights outstanding, term		7 years
Outstanding principal of credit Facility		$ 6,000
Credit Facility [Member]
Line of Credit Facility [Line Items]
Unused Fee (as a percent)		0.50%
Original issue discount (as a percent)		2.50%
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]
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%
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
Outstanding principal of credit Facility		$ 16,967
Incremental Term Loan [Member] \| Fortress [Member]
Line of Credit Facility [Line Items]
Current borrowing capacity						10,000
Initial Term Loan [Member] \| Fortress [Member]
Line of Credit Facility [Line Items]
Current borrowing capacity						$ 10,000

SIGNIFICANT ACCOUNTING POLICI_4

SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details) - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Severance expenses	$ 360	$ 385
Antidilutive shares	1,713	288
Right-of-use leased assets and corresponding liabilities	$ 1,200
Customers relationships & Other [Member]
Property, Plant and Equipment [Line Items]
Intangible asset, useful life	13 years
IP & Technology [Member]
Property, Plant and Equipment [Line Items]
Intangible asset, useful life	15 years
Minimum [Member]
Property, Plant and Equipment [Line Items]
Contract term (in years)	1 year
Minimum [Member] \| Customers relationships & Other [Member]
Property, Plant and Equipment [Line Items]
Intangible asset, useful life	4 years 6 months
Minimum [Member] \| IP & Technology [Member]
Property, Plant and Equipment [Line Items]
Intangible asset, useful life	4 years
Maximum [Member]
Property, Plant and Equipment [Line Items]
Contract term (in years)	5 years
Maximum [Member] \| Customers relationships & Other [Member]
Property, Plant and Equipment [Line Items]
Intangible asset, useful life	13 years
Maximum [Member] \| IP & Technology [Member]
Property, Plant and Equipment [Line Items]
Intangible asset, useful life	15 years
Computers and peripheral equipment [Member]
Property, Plant and Equipment [Line Items]
Tangible asset, useful life	3 years
Leased Products To Customers [Member]
Property, Plant and Equipment [Line Items]
Tangible asset, useful life	5 years
Office furniture and equipment [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Tangible asset, useful life	5 years
Office furniture and equipment [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Tangible asset, useful life	17 years
Capitalized software development costs [Member]
Property, Plant and Equipment [Line Items]
Intangible asset, useful life	5 years
Capitalized software development costs [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Intangible asset, useful life	4 years
Capitalized software development costs [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Intangible asset, useful life	5 years

SIGNIFICANT ACCOUNTING POLICI_5

SIGNIFICANT ACCOUNTING POLICIES - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Disaggregation of Revenue [Line Items]
Total revenue	$ 17,649	$ 12,267
Products and services transferred over time [Member]
Disaggregation of Revenue [Line Items]
Total revenue	12,530	8,648
Products transferred at a point in time [Member]
Disaggregation of Revenue [Line Items]
Total revenue	5,119	3,619
Cyber Security [Member]
Disaggregation of Revenue [Line Items]
Total revenue	1,384	1,634
Cyber Security [Member] \| Products and services transferred over time [Member]
Disaggregation of Revenue [Line Items]
Total revenue	498	44
Cyber Security [Member] \| Products transferred at a point in time [Member]
Disaggregation of Revenue [Line Items]
Total revenue	886	1,590
IoT [Member]
Disaggregation of Revenue [Line Items]
Total revenue	15,628	8,904
IoT [Member] \| Products and services transferred over time [Member]
Disaggregation of Revenue [Line Items]
Total revenue	11,697	7,176
IoT [Member] \| Products transferred at a point in time [Member]
Disaggregation of Revenue [Line Items]
Total revenue	3,931	1,728
e-Gov [Member]
Disaggregation of Revenue [Line Items]
Total revenue	637	1,729
e-Gov [Member] \| Products and services transferred over time [Member]
Disaggregation of Revenue [Line Items]
Total revenue	335	1,428
e-Gov [Member] \| Products transferred at a point in time [Member]
Disaggregation of Revenue [Line Items]
Total revenue	302	301
Africa [Member]
Disaggregation of Revenue [Line Items]
Total revenue	374	1,586
Africa [Member] \| Cyber Security [Member]
Disaggregation of Revenue [Line Items]
Total revenue	0	0
Africa [Member] \| IoT [Member]
Disaggregation of Revenue [Line Items]
Total revenue	0	0
Africa [Member] \| e-Gov [Member]
Disaggregation of Revenue [Line Items]
Total revenue	374	1,586
European countries [Member]
Disaggregation of Revenue [Line Items]
Total revenue	9,559	2,912
European countries [Member] \| Cyber Security [Member]
Disaggregation of Revenue [Line Items]
Total revenue	273	527
European countries [Member] \| IoT [Member]
Disaggregation of Revenue [Line Items]
Total revenue	9,023	2,242
European countries [Member] \| e-Gov [Member]
Disaggregation of Revenue [Line Items]
Total revenue	263	143
South America [Member]
Disaggregation of Revenue [Line Items]
Total revenue	0	37
South America [Member] \| Cyber Security [Member]
Disaggregation of Revenue [Line Items]
Total revenue	0	1
South America [Member] \| IoT [Member]
Disaggregation of Revenue [Line Items]
Total revenue	0	36
South America [Member] \| e-Gov [Member]
Disaggregation of Revenue [Line Items]
Total revenue	0	0
United States [Member]
Disaggregation of Revenue [Line Items]
Total revenue	6,877	6,820
United States [Member] \| Cyber Security [Member]
Disaggregation of Revenue [Line Items]
Total revenue	351	410
United States [Member] \| IoT [Member]
Disaggregation of Revenue [Line Items]
Total revenue	6,526	6,410
United States [Member] \| e-Gov [Member]
Disaggregation of Revenue [Line Items]
Total revenue	0	0
Israel [Member]
Disaggregation of Revenue [Line Items]
Total revenue	693	757
Israel [Member] \| Cyber Security [Member]
Disaggregation of Revenue [Line Items]
Total revenue	614	648
Israel [Member] \| IoT [Member]
Disaggregation of Revenue [Line Items]
Total revenue	79	109
Israel [Member] \| e-Gov [Member]
Disaggregation of Revenue [Line Items]
Total revenue	0	0
APAC [Member]
Disaggregation of Revenue [Line Items]
Total revenue	146	155
APAC [Member] \| Cyber Security [Member]
Disaggregation of Revenue [Line Items]
Total revenue	146	48
APAC [Member] \| IoT [Member]
Disaggregation of Revenue [Line Items]
Total revenue	0	107
APAC [Member] \| e-Gov [Member]
Disaggregation of Revenue [Line Items]
Total revenue	$ 0	$ 0

SIGNIFICANT ACCOUNTING POLICI_6

SIGNIFICANT ACCOUNTING POLICIES - Remaining Performance Obligations (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($)
2022-01-01 [Member]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected amount of remaining performance obligations	$ 33,130
Remaining Performance Obligation, Expected Timing of Satisfaction, Period	12 months
Expected percent of remaining performance obligations	43%
2023-01-01 [Member]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected percent of remaining performance obligations	57%

OTHER CURRENT ASSETS (Details)

OTHER CURRENT ASSETS (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid expenses	$ 224	$ 209
Advances to suppliers	337	323
Government institutions	740	983
Guaranty held by customer	621	0
Other	317	84
Other current assets	$ 2,239	$ 1,599

INVENTORIES, NET (Details)

INVENTORIES, NET (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
Raw materials, parts and supplies	$ 1,726	$ 1,947
Finished products	1,685	1,614
Inventories, net	3,411	3,561
Inventory net of write offs	$ 2,215	$ 2,196

PROPERTY AND EQUIPMENT, NET (De

PROPERTY AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Property and equipment	$ 7,200	$ 6,676
Accumulated depreciation	5,560	4,872
Depreciated cost	1,640	1,804
Computers and peripheral equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment	3,206	3,040
Accumulated depreciation	2,855	2,729
Office furniture and equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment	852	850
Accumulated depreciation	760	735
Trade Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment	42	42
Accumulated depreciation	39	39
Leasehold improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment	210	210
Accumulated depreciation	198	197
Equipment In lease [Member]
Property, Plant and Equipment [Line Items]
Property and equipment	2,890	2,534
Accumulated depreciation	$ 1,708	$ 1,172

PROPERTY AND EQUIPMENT, NET - A

PROPERTY AND EQUIPMENT, NET - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Abstract]
Purchase of Equipment	$ 524	$ 946
Depreciation expenses	$ 688	$ 513

OTHER INTANGIBLE ASSETS, NET -

OTHER INTANGIBLE ASSETS, NET - Other Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Carrying Amount	$ 25,367	$ 23,754
Accumulated Amortization	19,750	18,144
Net Book Value	5,617	5,610
Customers relationships & Other [Member]
Carrying Amount	8,734	8,734
Accumulated Amortization	8,112	7,798
Net Book Value	622	936
IP & Technology [Member]
Carrying Amount	7,019	7,019
Accumulated Amortization	4,898	4,524
Net Book Value	2,121	2,495
Capitalized software development costs [Member]
Carrying Amount	9,614	8,001
Accumulated Amortization	6,740	5,822
Net Book Value	$ 2,874	$ 2,179

OTHER INTANGIBLE ASSETS, NET _2

OTHER INTANGIBLE ASSETS, NET - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of Intangible Assets	$ 1,607	$ 1,396

ACCRUED EXPENSES AND OTHER LI_3

ACCRUED EXPENSES AND OTHER LIABILITIES (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Accrued Liabilities and Other Liabilities [Abstract]
Accrued management services	$ 86	$ 86
Professional services	202	206
Facilities	0	136
Legal contingent liability	0	67
Legal service providers	0	28
Authorities	0	393
Other accrued expenses	181	643
Accrued expenses and other liabilities	$ 469	$ 1,559

COMMITMENTS AND CONTINGENT LI_3

COMMITMENTS AND CONTINGENT LIABILITIES - Operating Leases Expenses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
The components of lease expense were as follows:
Operating leases expenses	$ 475	$ 356
Cash flow information related to operating leases:
Cash used in operating activities	502	303
Non-cash activity - Right of use assets obtained in exchange for new operating lease liabilities	$ 0	$ 1,200

COMMITMENTS AND CONTINGENT LI_4

COMMITMENTS AND CONTINGENT LIABILITIES - Supplemental Information Related to Operating Leases (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Other assets - Right-of-Use assets	$ 1,200	$ 1,200
Accumulated amortization	716	318
Operating lease Right-of-Use assets, net	484	882
Operating Lease, Liabilities
Lease liabilities – current - accrued expenses and other liabilities	381	0
Lease liabilities – noncurrent	108	925
Operating Lease, Liability, Total	$ 489	$ 925
Weighted average remaining lease term in years	1 year 2 months 12 days
Weighted average annual discount rate	9%

COMMITMENTS AND CONTINGENT LI_5

COMMITMENTS AND CONTINGENT LIABILITIES - Future Minimum Lease Commitments (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Future minimum lease commitments under non-cancelable operating leases
2023	$ 440
2024	103
2025	0
Total operating lease payments	543
Less: imputed interest	(54)
Present value of lease Liabilities	$ 489	$ 925

COMMITMENTS AND CONTINGENT LI_6

COMMITMENTS AND CONTINGENT LIABILITIES - Additional Information (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($) m²	Dec. 31, 2021 USD ($)
Other Commitments [Line Items]
Rent expenses	$ 817	$ 714
Bank guarantees	$ 375
Herzliya [Member]
Other Commitments [Line Items]
Area of office and warehousing premise \| m²	1,139
Monthly fee	$ 35
U.S. subsidiary, LCA Inc [Member]
Other Commitments [Line Items]
Area of office and warehousing premise \| m²	1,320
Monthly fee	$ 34

INCOME TAX - Deferred Tax Asset

INCOME TAX - Deferred Tax Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Income Tax [Line Items]
Operating loss carry forwards	$ 21,362	$ 20,150
Reserves and allowances	4,475	4,206
Net deferred tax assets before valuation allowance	25,837	24,356
Valuation allowance	(25,414)	(23,797)
Net deferred tax assets	423	559
Domestic [Member]
Income Tax [Line Items]
Net deferred tax assets before valuation allowance	20,867	19,521
Valuation allowance	(20,444)	(18,963)
Net deferred tax assets	423	558
Foreign [Member]
Income Tax [Line Items]
Net deferred tax assets before valuation allowance	4,970	4,835
Valuation allowance	(4,970)	(4,835)
Deferred Tax Liabilities, Net	$ 0	$ 0

INCOME TAX - Income Tax Reconci

INCOME TAX - Income Tax Reconciliation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Domestic	$ (7,013)	$ (10,616)
Foreign	(743)	483
Loss before income taxes	$ (7,756)	$ (10,133)
Statutory tax rate in Israel	23%	23%
Theoretical tax benefit	$ (1,784)	$ (2,331)
Current year carryforward losses and other differences for which a valuation allowance was recorded	1,264	1,438
Changes in valuation allowance	0	0
Offset of Other non-current assets (accounted for as DTA element)	(79)	(56)
Changes in foreign currency exchange rate and other differences	481	788
Non-deductible expenses and other differences	(181)	166
Actual income tax expense (benefit)	$ (299)	$ 5

INCOME TAX - Additional Informa

INCOME TAX - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Income Tax [Line Items]
Corporate tax rate (as a percent)	23%	23%
Other carryforward	$ 423
Deferred Tax Assets, Valuation Allowance	$ 25,414	$ 23,797
Israel [Member]
Income Tax [Line Items]
Corporate tax rate (as a percent)	23%	23%
US [Member]
Income Tax [Line Items]
Corporate tax rate (as a percent)	21%	21%
CA [Member]
Income Tax [Line Items]
State tax rate	8.84%
NY [Member]
Income Tax [Line Items]
State tax rate	6.50%
NYC [Member]
Income Tax [Line Items]
State tax rate	6.50%
Domestic [Member]
Income Tax [Line Items]
Deferred Tax Assets, Valuation Allowance	$ 20,444	$ 18,963
Domestic [Member] \| Capital Loss Carryforward [Member]
Income Tax [Line Items]
Other carryforward	15,810
Foreign [Member]
Income Tax [Line Items]
Operating loss carryforward	19,203
Deferred Tax Assets, Valuation Allowance	4,970	$ 4,835
Parent Company [Member] \| Foreign [Member]
Income Tax [Line Items]
Operating loss carryforward	55,165
Deferred Tax Assets, Valuation Allowance	$ 25,414

SHARE CAPITAL - Black-Scholes O

SHARE CAPITAL - Black-Scholes Option Valuation Model (Details)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Stockholders' Equity Note [Abstract]
Weighted Average Risk-free interest rate	2.84%	0%
Dividend yield	0%	0%
Weighted Average Volatility factor	74%
Weighted Average Expected life of the options	6 years 7 months 20 days	0 years

SHARE CAPITAL - Stock Option Ac

SHARE CAPITAL - Stock Option Activity (Details) - $ / shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Shares Under Options
Outstanding at beginning of year	21,388	33,484
Granted	800,937	0
Exercised	(1,650)	(4,496)
Canceled and forfeited	(9,625)	(7,600)
Outstanding at end of year	811,050	21,388
Exercisable at end of year	213,597	15,950
Weighted Average Exercise Price
Outstanding at beginning of year	$ 12.3	$ 23.1
Granted	3.25	0
Exercised	1	4.1
Canceled and forfeited	3.79	22.2
Outstanding at end of year	3.58	12.3
Exercisable at end of year	$ 4.15	$ 12.8

SHARE CAPITAL - Non-vested Opti

SHARE CAPITAL - Non-vested Options (Details)	12 Months Ended
SHARE CAPITAL - Non-vested Options (Details)	Dec. 31, 2022 $ / shares shares
Options
Non-vested at beginning of year \| shares	5,438
Granted \| shares	800,937
Vested \| shares	(199,297)
Forfeited and canceled \| shares	(9,625)
Non-vested at end of year \| shares	597,453
Weighted-average grant-date fair value
Non-vested at beginning of year \| $ / shares	$ 10.7
Granted \| $ / shares	3.18
Vested \| $ / shares	3.94
Forfeited and canceled \| $ / shares	17.43
Non-vested at end of period \| $ / shares	$ 3.33

SHARE CAPITAL - Allocation of t

SHARE CAPITAL - Allocation of the stock-based compensation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation charge	$ 138	$ 31
Cost of revenues [Member]
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation charge	17	7
Research and development expenses [Member]
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation charge	67	12
Selling and marketing expenses [Member]
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation charge	7	7
General and administrative expenses [Member]
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation charge	$ 47	$ 5

SHARE CAPITAL - Options Outstan

SHARE CAPITAL - Options Outstanding and Exercisable (Details) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($) $ / shares shares
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Options outstanding \| shares	811,050
Weighted average remaining contractual life	6 years 7 months 24 days
Weighted average exercise price	$ 3.58
Aggregate intrinsic value \| $	$ 0
Options exercisable \| shares	213,597
Weighted average remaining contractual life	6 years 6 months 29 days
Weighted average exercise price	$ 4.15
Aggregate intrinsic value \| $	$ 0
$0.00-$20.00 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of exercise price, lower limit	$ 0
Range of exercise price, upper limit	$ 20
Options outstanding \| shares	801,800
Weighted average remaining contractual life	6 years 6 months 29 days
Weighted average exercise price	$ 3.39
Aggregate intrinsic value \| $	$ 0
Options exercisable \| shares	204,347
Weighted average remaining contractual life	6 years 7 months 9 days
Weighted average exercise price	$ 3.43
Aggregate intrinsic value \| $	$ 0
$20.00-$50.00 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of exercise price, lower limit	$ 20
Range of exercise price, upper limit	$ 50
Options outstanding \| shares	9,250
Weighted average remaining contractual life	6 years 25 days
Weighted average exercise price	$ 20
Aggregate intrinsic value \| $	$ 0
Options exercisable \| shares	9,250
Weighted average remaining contractual life	6 years 25 days
Weighted average exercise price	$ 20
Aggregate intrinsic value \| $	$ 0

SHARE CAPITAL - Additional info

SHARE CAPITAL - Additional information concerning warrants activity (Details) - Note Warrant [Member] - $ / shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Number of warrants
Outstanding at Beginning of year	247,000	247,000
Issued	1,219,738	0
Exercised	564,869	0
Expired	0	0
Outstanding at end of year	901,869	247,000
Weighted average exercise price
Outstanding at Beginning of year	$ 17.07	$ 17.07
Granted	4.96	0
Exercised	3.08	0
Expired	0	0
Outstanding at end of year	$ 10.06	$ 17.07

SHARE CAPITAL - Range of exerci

SHARE CAPITAL - Range of exercise prices and expiration date for warrants outstanding (Details) - $ / shares	12 Months Ended
	Dec. 31, 2022	Mar. 01, 2022
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Warrants exercise price		$ 0.0001
Warrants [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Number of warrants Outstanding	901,869
$18.70 [Member] \| Warrants [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Warrants exercise price	$ 18.7
Number of warrants Outstanding	2,500
Exercisable until	2025
$7.50 [Member] \| Warrants [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Warrants exercise price	$ 7.5
Number of warrants Outstanding	7,500
Exercisable until	2026
$17.07 [Member] \| Warrants [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Warrants exercise price	$ 17.07
Number of warrants Outstanding	237,000
Exercisable until	2027
$3.20 [Member] \| Warrants [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Warrants exercise price	$ 3.2
Number of warrants Outstanding	654,869
Exercisable until	2029

SHARE CAPITAL - Additional In_2

SHARE CAPITAL - Additional Information (Details) $ / shares in Units, $ in Thousands		1 Months Ended	12 Months Ended
	Mar. 01, 2022 USD ($) shares	Jul. 27, 2022 $ / shares shares	Dec. 31, 2022 USD ($) $ / shares shares	Dec. 31, 2021 USD ($) $ / shares shares	Mar. 01, 2022 ₪ / shares shares	Mar. 01, 2022 $ / shares shares
Stok option, ordinary Shares			800,937	0
Ordinary shares exercise price \| $ / shares			$ 3.25	$ 0
Transaction costs \| $	$ 369
Intrinsic value of options exercised \| $			$ 7	$ 0
Unrecognized compensation \| $			$ 1,125
Pre-funded warrant issued purchase of ordinary shares					440,159	440,159
Warrants exercise price \| $ / shares						$ 0.0001
Stock option plans, weighted average period			3.58
Option Plan [Member]
Stok option, ordinary Shares			188,950
March Warrants [Member]
Gross proceeds from registered direct offering \| $			$ 1,740
Transaction costs \| $			$ 173
Stock options, expirations shares			564,869
Pre-funded warrant issued purchase of ordinary shares			564,869		564,869	564,869
Warrants exercise price \| $ / shares						$ 7
Accredited Institutional Investor [Member]
Gross proceeds from registered direct offering \| $	$ 4
Ordinary shares, price per share \| ₪ / shares					₪ 2.5
Stok option, ordinary Shares	313,000
Pre-funded warrant issued purchase of ordinary shares					440,159	440,159
Investor [Member]
warrants to purchase ordinary shares		564,869
Warrants exercise price \| $ / shares		$ 3.2
Maximum [Member]
Expiration period of shares			10 years

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - USD ($)		12 Months Ended
RELATED PARTY TRANSACTIONS (Details) - USD ($)	May 09, 2013	Dec. 31, 2022	Dec. 31, 2021
Related Party Transaction [Line Items]
Accrued management services		$ 86,000	$ 103,000
Mr. Trabelsi - Chief executive officer [Member]
Related Party Transaction [Line Items]
Monthly payment	$ 10,600
Bonus as a percentage of net profit	2%
Bonus as a percentage of revenue	0.50%
Mr. and Mrs. Trabelsi [Member]
Related Party Transaction [Line Items]
Proceeds from related party debt		$ 166,000

SEGMENTS, MAJOR CUSTOMERS AND_3

SEGMENTS, MAJOR CUSTOMERS AND GEOGRAPHIC INFORMATION - Segment Reporting Information, by Segment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Revenues	$ 17,649	$ 12,267
Operating loss	(6,005)	(6,737)
Goodwill	7,026	7,026
Total Property and Equipment, net	1,640	1,804
Cyber Security [Member]
Revenues	1,384	1,634
Operating loss	680	400
Goodwill	1,075	1,075
Total Property and Equipment, net	30	47
IoT [Member]
Revenues	15,628	8,904
Operating loss	(3,993)	(3,004)
Goodwill	2,229	2,229
Total Property and Equipment, net	1,590	1,543
e-Gov [Member]
Revenues	637	1,729
Operating loss	(2,692)	(4,133)
Goodwill	3,722	3,722
Total Property and Equipment, net	$ 50	$ 214

SEGMENTS, MAJOR CUSTOMERS AND_4

SEGMENTS, MAJOR CUSTOMERS AND GEOGRAPHIC INFORMATION - Reconciliation of Operating Income (loss) of Reportable Segments (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Operating loss
Total operating loss of reportable segments	$ (6,005)	$ (6,737)
Financial expenses, net	(1,751)	(3,396)
Loss before income taxes	$ (7,756)	$ (10,133)

SEGMENTS, MAJOR CUSTOMERS AND_5

SEGMENTS, MAJOR CUSTOMERS AND GEOGRAPHIC INFORMATION - Operations by Geographic Area (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 17,649	$ 12,267
Property and equipment, net	1,640	1,804
Africa [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	374	1,586
Property and equipment, net	0	0
European countries [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	9,559	2,912
Property and equipment, net	0	0
South America [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	0	37
Property and equipment, net	0	0
United States [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	6,877	6,820
Property and equipment, net	38	47
Israel [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	693	757
Property and equipment, net	1,602	1,757
APAC [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	146	155
Property and equipment, net	$ 0	$ 0

SEGMENTS, MAJOR CUSTOMERS AND_6

SEGMENTS, MAJOR CUSTOMERS AND GEOGRAPHIC INFORMATION - Revenues from External Customers by Products and Services (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Revenue from External Customer [Line Items]
Revenues	$ 17,649	$ 12,267
Raw materials and equipment [Member]
Revenue from External Customer [Line Items]
Revenues	302	1,119
Electronic monitoring [Member]
Revenue from External Customer [Line Items]
Revenues	11,614	6,393
Treatment programs [Member]
Revenue from External Customer [Line Items]
Revenues	3,998	3,292
Maintenance, royalties and project management [Member]
Revenue from External Customer [Line Items]
Revenues	$ 1,735	$ 1,463

SEGMENTS, MAJOR CUSTOMERS AND_7

SEGMENTS, MAJOR CUSTOMERS AND GEOGRAPHIC INFORMATION - Schedule of Major Customer Concentration (Details) - Sales [Member] - Customer [Member]	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Customer A [Member]
Concentration Risk [Line Items]
Concentration percentage	36%	0%
Customer B [Member]
Concentration Risk [Line Items]
Concentration percentage	0%	10%

OTHER EXPENSE, NET - Other Expe

OTHER EXPENSE, NET - Other Expenses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Other Income and Expenses [Abstract]
Doubtful debt provision	$ 1,000	$ 3,000
Change in liability for future earn-out	0	689
Other	138	685
Total other expense, net	$ 1,138	$ 4,374

OTHER EXPENSE, NET - Accounts R

OTHER EXPENSE, NET - Accounts Receivables Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Other Income and Expenses [Abstract]
Balance at beginning of period	$ 11,667	$ 8,667
Provision during the period	1,000	3,000
Balance at end of period	$ 12,667	$ 11,667

FINANCIAL EXPENSES, NET (Detail

FINANCIAL EXPENSES, NET (Details) - USD ($) $ in Thousands	12 Months Ended
FINANCIAL EXPENSES, NET (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Financial expenses:
Interest, bank charges and fees	$ (1,770)	$ (3,642)
Exchange differences, net	19	246
Total financial expenses	(1,751)	(3,396)
Financial income:
Interest income	0	0
Total financial income	0	0
Total financial expenses, net	$ (1,751)	$ (3,396)

Subsequent Events (Details)

Subsequent Events (Details)	Mar. 30, 2023 $ / shares shares	Dec. 31, 2022 ₪ / shares	Jul. 27, 2022 $ / shares shares	Mar. 01, 2022 $ / shares shares	Dec. 31, 2021 ₪ / shares
Warrant issued purchase of ordinary shares			564,869	313,000
Common Stock, Par or Stated Value Per Share \| ₪ / shares		₪ 2.5			₪ 2.5
Pre-funded warrant issued purchase of ordinary shares				440,159
Warrants exercise price \| $ / shares				$ 0.0001
Concurrent private placement of warrant to purchase ordinary shares				564,869
Concurrent private placement of exercise price \| $ / shares			$ 3.08	$ 7
Subsequent Event [Member]
Warrant issued purchase of ordinary shares	485,000
Pre-funded warrant issued purchase of ordinary shares	1,032,615
Warrants exercise price \| $ / shares	$ 0.00001
Concurrent private placement of warrant to purchase ordinary shares	1,517,615
Concurrent private placement of exercise price \| $ / shares	$ 1.66