2023 Q1 Form 10-K Financial Statement

#000149315223009276 Filed on March 28, 2023

View on sec.gov

Income Statement

Concept 2023 Q1 2022 Q4 2022
Revenue $303.0K $159.0K $665.0K
YoY Change 15050.0% 140.91% 71.83%
Cost Of Revenue $550.0K $352.0K $1.631M
YoY Change 90.97% 22.65% 47.2%
Gross Profit -$247.0K -$193.0K -$966.0K
YoY Change -13.64% -12.67% 33.98%
Gross Profit Margin -81.52% -121.38% -145.26%
Selling, General & Admin $1.134M $397.0K $4.276M
YoY Change -25.83% -80.01% -33.07%
% of Gross Profit
Research & Development $1.398M $1.174M $4.197M
YoY Change 46.54% 80.06% 109.64%
% of Gross Profit
Depreciation & Amortization $155.0K $91.00K $251.0K
YoY Change 210.0% 78.43% 120.18%
% of Gross Profit
Operating Expenses $2.532M $1.564M $8.473M
YoY Change 2.3% -40.6% 1.07%
Operating Profit -$2.779M -$1.757M -$9.439M
YoY Change 0.65% -38.44% 3.68%
Interest Expense $86.00K $93.00K -$59.00K
YoY Change -418.52% -24.39% -150.43%
% of Operating Profit
Other Income/Expense, Net
YoY Change
Pretax Income -$2.686M -$1.664M -$9.468M
YoY Change -3.66% -39.07% 5.35%
Income Tax $0.00
% Of Pretax Income
Net Earnings -$2.686M -$1.664M -$9.468M
YoY Change -3.66% -39.07% 5.35%
Net Earnings / Revenue -886.47% -1046.54% -1423.76%
Basic Earnings Per Share -$0.37 -$1.33
Diluted Earnings Per Share -$0.37 -$0.23 -$1.33
COMMON SHARES
Basic Shares Outstanding 10.43M shares 7.122M shares 7.122M shares
Diluted Shares Outstanding 7.276K shares 7.122K shares

Balance Sheet

Concept 2023 Q1 2022 Q4 2022
SHORT-TERM ASSETS
Cash & Short-Term Investments $24.59M $13.15M $13.15M
YoY Change 27.28% -32.91% -32.91%
Cash & Equivalents $9.583M $10.10M $10.10M
Short-Term Investments $15.01M $3.047M $3.047M
Other Short-Term Assets $564.0K $281.0K $281.0K
YoY Change 35.58% -36.57% -36.57%
Inventory $693.0K $630.0K $630.0K
Prepaid Expenses
Receivables $61.00K $60.00K $60.00K
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $25.91M $14.12M $14.12M
YoY Change 29.93% -30.16% -30.16%
LONG-TERM ASSETS
Property, Plant & Equipment $508.0K $648.0K $955.0K
YoY Change -58.29% -17.03% -24.39%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $268.0K $328.0K $328.0K
YoY Change -31.28% -17.17% -17.17%
Total Long-Term Assets $2.557M $2.778M $2.778M
YoY Change -22.11% -16.68% -16.68%
TOTAL ASSETS
Total Short-Term Assets $25.91M $14.12M $14.12M
Total Long-Term Assets $2.557M $2.778M $2.778M
Total Assets $28.46M $16.90M $16.90M
YoY Change 22.57% -28.25% -28.25%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $365.0K $297.0K $297.0K
YoY Change 60.79% 188.35% 188.35%
Accrued Expenses $943.0K $778.0K $778.0K
YoY Change 12.4% -5.24% -5.24%
Deferred Revenue $1.304M $1.426M
YoY Change 312.14%
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $2.620M $2.559M $2.559M
YoY Change 11.87% 95.49% 95.49%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change
Other Long-Term Liabilities $2.468M $2.550M $2.550M
YoY Change -24.73% -2.71% -2.71%
Total Long-Term Liabilities $2.468M $2.550M $2.550M
YoY Change -24.73% -2.71% -2.71%
TOTAL LIABILITIES
Total Short-Term Liabilities $2.620M $2.559M $2.559M
Total Long-Term Liabilities $2.468M $2.550M $2.550M
Total Liabilities $5.088M $5.109M $5.109M
YoY Change -9.48% 30.0% 30.0%
SHAREHOLDERS EQUITY
Retained Earnings -$27.45M -$24.76M
YoY Change 61.91%
Common Stock $50.82M $36.55M
YoY Change 4.69%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $23.38M $11.79M $11.79M
YoY Change
Total Liabilities & Shareholders Equity $28.46M $16.90M $16.90M
YoY Change 22.57% -28.25% -28.25%

Cashflow Statement

Concept 2023 Q1 2022 Q4 2022
OPERATING ACTIVITIES
Net Income -$2.686M -$1.664M -$9.468M
YoY Change -3.66% -39.07% 5.35%
Depreciation, Depletion And Amortization $155.0K $91.00K $251.0K
YoY Change 210.0% 78.43% 120.18%
Cash From Operating Activities -$2.474M -$1.988M -$6.095M
YoY Change 1004.46% 68.19% 3.55%
INVESTING ACTIVITIES
Capital Expenditures $15.00K $31.00K $118.0K
YoY Change -162.5% -127.68% -119.83%
Acquisitions
YoY Change
Other Investing Activities -$12.00M $9.500M $8.000M
YoY Change -186.36% -172.73%
Cash From Investing Activities -$12.02M $9.469M $7.882M
YoY Change 49962.5% -185.21% -167.98%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities $13.98M 0.000
YoY Change -100.0%
NET CHANGE
Cash From Operating Activities -$2.474M -1.988M -$6.095M
Cash From Investing Activities -$12.02M 9.469M $7.882M
Cash From Financing Activities $13.98M 0.000
Net Change In Cash -$512.0K 7.481M $1.787M
YoY Change -166.43% -64.81%
FREE CASH FLOW
Cash From Operating Activities -$2.474M -$1.988M -$6.095M
Capital Expenditures $15.00K $31.00K $118.0K
Free Cash Flow -$2.489M -$2.019M -$6.213M
YoY Change 1144.5% 88.69% 17.43%

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CY2022 SCTC Payments Investment To Short Term Deposits
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CY2021 SCTC Payments Investment To Short Term Deposits
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CY2021 us-gaap Net Cash Provided By Used In Investing Activities
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CY2021 SCTC Issuance Expenses
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NetCashProvidedByUsedInFinancingActivities
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CY2021 us-gaap Right Of Use Asset Obtained In Exchange For Operating Lease Liability
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524000 usd
CY2021 SCTC Noncash Related To Increase In Property And Equipment Through A Decrease In Advances To Suppliers
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CY2022 us-gaap Nature Of Operations
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<p id="xdx_80C_eus-gaap--NatureOfOperations_zsYalrco8Ux1" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE 1 – <span id="xdx_825_z79SxFmFVUhe">GENERAL</span>:</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"/></p> <table cellpadding="0" cellspacing="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>a</b>.</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ScoutCam Inc. (the “Company”), formerly known as Intellisense Solutions Inc., (“Intellisense”), was incorporated under the laws of the State of Nevada on March 22, 2013. Prior to the closing of the Exchange Agreement (as defined below), the Company was a non-operating “shell company”.</span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company’s wholly-owned subsidiary, ScoutCam Ltd. (“ScoutCam”), was formed in the State of Israel on January 3, 2019, as a wholly-owned subsidiary of Medigus Ltd. (“Medigus”), an Israeli company traded on the Nasdaq Capital Market, and commenced operations on March 1, 2019. </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In December 2019, Medigus and ScoutCam consummated an asset transfer agreement, under which Medigus transferred and assigned certain assets and intellectual property rights related to its miniaturized imaging business to ScoutCam. </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On December 30, 2019, Intellisense and Medigus consummated a securities exchange agreement (the “Exchange Agreement”), pursuant to which Medigus delivered 100% of its holdings in ScoutCam to Intellisense in exchange for shares of Intellisense’s common stock representing 60% of the issued and outstanding share capital of Intellisense immediately upon the consummation of the Exchange Agreement. </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of December 31, 2022, Medigus beneficially owned 27.02% of the Company’s outstanding common stock. </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company, through ScoutCam, is engaged in the development, production and marketing of innovative Predictive Maintenance (PdM) and Condition Based Monitoring (CBM) technologies, providing visual sensing and AI-based video analytics solutions for critical systems in the aviation, maritime, industrial non-destructing-testing industries, transportation, and energy industries. Some of the Company’s products utilize our micro visualization technology in medical devices for complex and minimally invasive medical procedures. Company’s technology includes proven video technologies and products amalgamated into a first-of-its-kind, FDA-cleared minimally invasive surgical device. The Company’s video-based sensors, embedded software and AI algorithms are being deployed in hard-to-reach locations and harsh environments across a variety of PdM and CBM use cases. The Company’s solution allows maintenance and operations teams visibility into areas which are inaccessible under normal circumstances, or where the operating ambience otherwise is not suitable for continuous real-time monitoring’ and has various applications which have relevancy in wide range of industry segments, that utilize complicated mechanics requiring ongoing monitoring and predictive maintenance applications. </span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>SCOUTCAM INC.</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE 1 – GENERAL</b> (continued)<b>:</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>b.</b></span></td> <td style="font: 10pt Times New Roman, Times, Serif"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On August 9, 2021, the Company amended its Articles of Incorporation to effect a <span id="xdx_900_eus-gaap--StockholdersEquityReverseStockSplit_c20210808__20210809_zPI7HM1fCr7a" title="Stockholders' equity, reverse stock split">nine-to-one</span> reverse stock split of its outstanding Common Stock.</span></p></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">As a result of the reverse stock split, every nine shares of the Company’s outstanding Common Stock were combined and reclassified into one share of the Company’s Common Stock. No fractional shares were issued in connection with or following the reverse split. The amount of authorized capital of the Company’s Common Stock and par value of such shares remained unchanged.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">All share, stock option and per share information in these consolidated financial statements have been adjusted to reflect the reverse stock split on a retroactive basis.</span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">.</span></p></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>c.</b></span></td> <td style="font: 10pt Times New Roman, Times, Serif"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Since incorporation of ScoutCam and through December 31, 2022, the Company accumulated a deficit of approximately $<span id="xdx_908_eus-gaap--RetainedEarningsAccumulatedDeficit_iI_pn3n3_dxL_c20221231_zAwAVp3P6jOh" title="::XDX::-24762"><span style="-sec-ix-hidden: xdx2ixbrl0416">25 </span></span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">million and its activities have been funded mainly by its shareholders. The Company’s management believes the Company’ cash and cash resources as of December 31, 2022 as well as its proceeds from issuance of common stock and warrants in the private offering as detailed in Note 14, will allow the Company to fund its operating plan through at least the next 12 months. However, the Company expects to continue to incur significant research and development and other costs related to its ongoing operations and in order to continue its future operations, the Company will need to obtain additional funding until becoming profitable.</span></p></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>SCOUTCAM INC.</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 49.6pt; text-align: justify; text-indent: -49.6pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
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<p id="xdx_84A_eus-gaap--UseOfEstimates_zpciYLHYkDXf" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>b.</b></span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="xdx_86E_z6iqiCJacFki">Use of estimates</span></b></span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. The Company evaluates its assumptions on an ongoing basis, including those related to contingencies and inventory impairment, as well as estimates used in applying its revenue recognition policy. Actual results may differ from these estimates.</span></p>
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0.0833 pure
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P6Y2M23D
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0.04 pure
CY2022 us-gaap Debt Instrument Term
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P12M
CY2022Q4 us-gaap Inventory Raw Materials And Supplies
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438000 usd
CY2021Q4 us-gaap Inventory Raw Materials And Supplies
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99000 usd
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148000 usd
CY2021Q4 us-gaap Inventory Work In Process
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2000 usd
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44000 usd
CY2021Q4 us-gaap Inventory Finished Goods
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66000 usd
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CY2021Q4 us-gaap Inventory Net
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167000 usd
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CY2021 us-gaap Inventory Write Down
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4.09
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ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod
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CY2021 us-gaap Depreciation
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P5Y7M24D
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CY2022 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Grants In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice
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CY2022Q4 us-gaap Operating Loss Carryforwards
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CY2021Q4 us-gaap Operating Loss Carryforwards
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CY2022Q4 us-gaap Deferred Tax Assets Gross
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CY2021Q4 us-gaap Deferred Tax Assets Gross
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CY2022Q4 us-gaap Operating Loss Carryforwards Valuation Allowance
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CY2021Q4 us-gaap Operating Loss Carryforwards Valuation Allowance
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CY2022Q4 us-gaap Deferred Tax Assets Gross
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CY2022Q4 us-gaap Operating Loss Carryforwards
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58000 usd
CY2021Q4 us-gaap Accounts Payable Related Parties Current
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39000 usd
CY2021 us-gaap Compensation Expense Excluding Cost Of Good And Service Sold
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CY2022 us-gaap Compensation Expense Excluding Cost Of Good And Service Sold
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CY2021 us-gaap Related Party Transaction Amounts Of Transaction
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37000 usd
CY2022Q4 us-gaap Common Stock Shares Authorized
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300000000 shares
CY2020Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
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CY2020Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
2.61
CY2022 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Forfeitures In Period
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CY2022 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Forfeitures In Period Weighted Average Exercise Price
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3.57
CY2022Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
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CY2022Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
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CY2022 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Outstanding Weighted Average Remaining Contractual Term2
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CY2022Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue
2116000 usd
CY2022Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber
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CY2022Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Weighted Average Exercise Price
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CY2022 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Exercisable Weighted Average Remaining Contractual Term1
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CY2022Q4 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Exercisable Intrinsic Value1
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1595000 usd
CY2022Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice
4.5
CY2022 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1
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CY2022 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Vested In Period Fair Value1
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127000 usd
CY2022 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
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CY2022 us-gaap Property Plant And Equipment Useful Life
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P7Y
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CY2021 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
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387000 usd
CY2022Q4 us-gaap Contract With Customer Asset Net
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1495000 usd
CY2021Q4 us-gaap Contract With Customer Asset Net
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CY2022Q4 us-gaap Contract With Customer Liability
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3644000 usd
CY2021Q4 us-gaap Contract With Customer Liability
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2420000 usd
CY2021Q4 us-gaap Contract With Customer Asset Net
ContractWithCustomerAssetNet
1675000 usd
CY2020Q4 us-gaap Contract With Customer Asset Net
ContractWithCustomerAssetNet
1130000 usd
CY2021 us-gaap Contract With Customer Asset Purchase
ContractWithCustomerAssetPurchase
545000 usd
CY2022 SCTC Contract With Customer Asset Contract Costs
ContractWithCustomerAssetContractCosts
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CY2022Q4 us-gaap Contract With Customer Asset Net
ContractWithCustomerAssetNet
1495000 usd
CY2021Q4 us-gaap Contract With Customer Asset Net
ContractWithCustomerAssetNet
1675000 usd
CY2021Q4 us-gaap Contract With Customer Liability
ContractWithCustomerLiability
2420000 usd
CY2020Q4 us-gaap Contract With Customer Liability
ContractWithCustomerLiability
848000 usd
CY2022 SCTC Contract With Customer Liability Deferred Revenue Relating To New Sales
ContractWithCustomerLiabilityDeferredRevenueRelatingToNewSales
1613000 usd
CY2021 SCTC Contract With Customer Liability Deferred Revenue Relating To New Sales
ContractWithCustomerLiabilityDeferredRevenueRelatingToNewSales
1641000 usd
CY2022 SCTC Contract With Customer Liability Revenue Recognized Development Services
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-389000 usd
CY2021 SCTC Contract With Customer Liability Revenue Recognized Development Services
ContractWithCustomerLiabilityRevenueRecognizedDevelopmentServices
-69000 usd
CY2022Q4 us-gaap Contract With Customer Liability
ContractWithCustomerLiability
3644000 usd
CY2021Q4 us-gaap Contract With Customer Liability
ContractWithCustomerLiability
2420000 usd
CY2022Q4 us-gaap Revenue Remaining Performance Obligation
RevenueRemainingPerformanceObligation
3644000 usd
CY2022Q4 us-gaap Operating Lease Right Of Use Asset
OperatingLeaseRightOfUseAsset
307000 usd
CY2022Q4 us-gaap Operating Lease Liability
OperatingLeaseLiability
263000 usd
CY2021Q4 us-gaap Operating Lease Right Of Use Asset
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482000 usd
CY2021Q4 us-gaap Operating Lease Liability
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459000 usd
CY2022 us-gaap Sublease Income
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3000 usd
CY2022 us-gaap Operating Lease Expense
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264000 usd
CY2021 us-gaap Operating Lease Expense
OperatingLeaseExpense
202000 usd
CY2022 us-gaap Operating Lease Payments
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261000 usd
CY2021 us-gaap Operating Lease Payments
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202000 usd
CY2022Q4 us-gaap Operating Lease Weighted Average Remaining Lease Term1
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CY2021Q4 us-gaap Operating Lease Weighted Average Remaining Lease Term1
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CY2022Q4 us-gaap Operating Lease Weighted Average Discount Rate Percent
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0.06 pure
CY2022Q4 us-gaap Lessee Operating Lease Liability Payments Due Next Twelve Months
LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths
206000 usd
CY2022Q4 us-gaap Lessee Operating Lease Liability Payments Due Year Two
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54000 usd
CY2022Q4 us-gaap Lessee Operating Lease Liability Payments Due Year Three
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16000 usd
CY2022Q4 us-gaap Lessee Operating Lease Liability Payments Due
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276000 usd
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LesseeOperatingLeaseLiabilityUndiscountedExcessAmount
13000 usd
CY2022Q4 us-gaap Operating Lease Liability
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263000 usd
CY2022 us-gaap Salaries And Wages
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2034000 usd
CY2021 us-gaap Salaries And Wages
SalariesAndWages
894000 usd
CY2022 us-gaap Allocated Share Based Compensation Expense
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576000 usd
CY2021 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
257000 usd
CY2022 SCTC Materials And Subcontractors
MaterialsAndSubcontractors
1030000 usd
CY2021 SCTC Materials And Subcontractors
MaterialsAndSubcontractors
655000 usd
CY2022 us-gaap Depreciation Nonproduction
DepreciationNonproduction
163000 usd
CY2021 us-gaap Depreciation Nonproduction
DepreciationNonproduction
39000 usd
CY2022 us-gaap Travel And Entertainment Expense
TravelAndEntertainmentExpense
73000 usd
CY2022 SCTC Vehicle Expenses
VehicleExpenses
75000 usd
CY2021 SCTC Vehicle Expenses
VehicleExpenses
26000 usd
CY2022 SCTC Rent And Maintenance And Other Expenses
RentAndMaintenanceAndOtherExpenses
246000 usd
CY2021 SCTC Rent And Maintenance And Other Expenses
RentAndMaintenanceAndOtherExpenses
131000 usd
CY2022 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
4197000 usd
CY2021 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
2002000 usd
CY2022 us-gaap Labor And Related Expense
LaborAndRelatedExpense
1027000 usd
CY2021 us-gaap Labor And Related Expense
LaborAndRelatedExpense
1144000 usd
CY2022 SCTC Share Based Compensation Included In General And Administartive Expenses
ShareBasedCompensationIncludedInGeneralAndAdministartiveExpenses
903000 usd
CY2021 SCTC Share Based Compensation Included In General And Administartive Expenses
ShareBasedCompensationIncludedInGeneralAndAdministartiveExpenses
1483000 usd
CY2022 us-gaap Professional And Contract Services Expense
ProfessionalAndContractServicesExpense
859000 usd
CY2021 us-gaap Professional And Contract Services Expense
ProfessionalAndContractServicesExpense
1193000 usd
CY2022 SCTC Patents
Patents
292000 usd
CY2021 SCTC Patents
Patents
798000 usd
CY2022 SCTC Depreciation Included In General And Administartive Expenses
DepreciationIncludedInGeneralAndAdministartiveExpenses
34000 usd
CY2021 SCTC Depreciation Included In General And Administartive Expenses
DepreciationIncludedInGeneralAndAdministartiveExpenses
29000 usd
CY2022 us-gaap General Insurance Expense
GeneralInsuranceExpense
337000 usd
CY2021 us-gaap General Insurance Expense
GeneralInsuranceExpense
386000 usd
CY2022 SCTC Vehicle Expenses Included In General And Administartive Expenses
VehicleExpensesIncludedInGeneralAndAdministartiveExpenses
73000 usd
CY2021 SCTC Vehicle Expenses Included In General And Administartive Expenses
VehicleExpensesIncludedInGeneralAndAdministartiveExpenses
99000 usd
CY2022 us-gaap Other General And Administrative Expense
OtherGeneralAndAdministrativeExpense
181000 usd
CY2021 us-gaap Other General And Administrative Expense
OtherGeneralAndAdministrativeExpense
120000 usd
CY2022 us-gaap Income Tax Expense Benefit Continuing Operations Adjustment Of Deferred Tax Asset Liability
IncomeTaxExpenseBenefitContinuingOperationsAdjustmentOfDeferredTaxAssetLiability
-129000 usd
CY2021 us-gaap Income Tax Expense Benefit Continuing Operations Adjustment Of Deferred Tax Asset Liability
IncomeTaxExpenseBenefitContinuingOperationsAdjustmentOfDeferredTaxAssetLiability
229000 usd
CY2022 us-gaap General And Administrative Expense
GeneralAndAdministrativeExpense
3577000 usd
CY2021 us-gaap General And Administrative Expense
GeneralAndAdministrativeExpense
5481000 usd

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