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101.1NS
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XBRL Instance Document
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101.SCH
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XBRL Taxonomy Extension Schema Document
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101.CAL
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XBRL Taxonomy Extension Calculation Linkbase Document
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101.LAB
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XBRL Taxonomy Extension Label Linkbase Document
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101.PRE
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XBRL Taxonomy Extension Presentation Linkbase Document
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101.DEF
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XBRL Taxonomy Extension Definitions Linkbase Document
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SuperCom Ltd.
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By: /s/ Ordan Trabelsi
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Name: Ordan Trabelsi
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Title: Chief Executive Officer
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Page
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3
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4
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5
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6
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7 – 10
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June 30,
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December 31,
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||||||
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2021
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2020
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||||||
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Unaudited
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Audited
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||||||
CURRENT ASSETS
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||||||||
Cash and cash equivalents
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9,419
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3,137
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||||||
Restricted bank deposits
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1,462
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815
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||||||
Trade receivable, net
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13,574
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12,427
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||||||
Other accounts receivable and prepaid expenses
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874
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876
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||||||
Inventories, net (Note 3)
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3,567
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2,404
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||||||
Patents
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5,283
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5,283
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||||||
Total current assets
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34,179
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24,942
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||||||
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||||||||
LONG-TERM ASSETS
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||||||||
Severance pay funds
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404
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531
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||||||
Deferred tax long term
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204
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204
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||||||
Property and equipment, net
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1,628
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1,371
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||||||
Other Intangible assets, net (Note 4)
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5,856
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6,270
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||||||
Goodwill
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7,026
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7,026
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||||||
Total non-current assets
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15,118
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15,402
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||||||
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||||||||
TOTAL ASSETS
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49,297
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40,344
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||||||
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||||||||
CURRENT LIABILITIES
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||||||||
Trade payables
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1,872
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2,860
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||||||
Employees and payroll accruals
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2,558
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2,627
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||||||
Related parties
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359
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1,749
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||||||
Accrued expenses and other liabilities
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2,642
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4,393
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||||||
Deferred revenue
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329
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766
|
||||||
Short-term loan and others
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1,909
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7,204
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||||||
Total current liabilities
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9,669
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19,598
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||||||
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||||||||
LONG-TERM LIABILITIES
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||||||||
Long-term loan
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28,536
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14,952
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||||||
Deferred revenue
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49
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49
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||||||
Deferred tax liability
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170
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170
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||||||
Accrued severance pay
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520
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656
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||||||
Total non-current liabilities
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29,275
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15,827
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||||||
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||||||||
SHAREHOLDERS' EQUITY:
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||||||||
Ordinary shares
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1,862
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1,397
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||||||
Additional paid-in capital
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96,089
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88,853
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||||||
Accumulated deficit
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(87,598
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)
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(85,331
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)
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||||
Total shareholders' equity
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10,353
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4,919
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||||||
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||||||||
Total Liabilities and Shareholders' Equity
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49,297
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40,344
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Six months ended June 30
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|||||||
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2021
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2020
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||||||
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Unaudited
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Unaudited
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||||||
REVENUES
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6,125
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6,796
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||||||
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||||||||
COST OF REVENUES
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2,669
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2,573
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||||||
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||||||||
GROSS PROFIT
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3,456
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4,223
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||||||
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||||||||
OPERATING EXPENSES
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||||||||
Research and development, net
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1,246
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987
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||||||
Sales and marketing
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747
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973
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||||||
General and administration
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1,806
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1,453
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||||||
Other expenses (income)
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-
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45
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||||||
Total operating expenses
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3,799
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3,458
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||||||
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||||||||
OPERATING (LOSS) INCOME
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(343
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) |
765
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|||||
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||||||||
FINANCIAL EXPENSES (INCOME), NET
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1,919
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1,141
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||||||
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||||||||
LOSS BEFORE INCOME TAX
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(2,262
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)
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(376
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)
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||||
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||||||||
INCOME TAX BENEFIT
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(5
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)
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-
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|||||
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||||||||
NET LOSS FOR THE PERIOD
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(2,267
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)
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(376
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)
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||||
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||||||||
NET LOSS PER SHARE
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||||||||
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||||||||
Basic
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(0.09
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)
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(0.02
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)
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||||
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||||||||
Diluted
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(0.09
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)
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(0.02
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)
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||||
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||||||||
Weighted average number of ordinary shares used in computing basic net loss per share
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25,882,526
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16,214,228
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||||||
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||||||||
Weighted average number of ordinary shares used in computing diluted net loss per share
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25,882,526
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16,214,228
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Ordinary shares
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Additional
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Total
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|||||||||||||||||
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Number of
Shares |
Share
capital |
paid-in
capital |
Accumulated
deficit |
shareholders'
equity |
|||||||||||||||
|
||||||||||||||||||||
Balance as of December 31, 2019
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16,214,228
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1,110
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84,680
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(77,464
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)
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8,332
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||||||||||||||
Changes during the six months ended June 30, 2020 (unaudited):
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||||||||||||||||||||
Net loss
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-
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-
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-
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(376
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)
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(376
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)
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|||||||||||||
Balance as of June 30, 2020 (unaudited)
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16,214,228
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1,110
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84,680
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(77,840
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)
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7,956
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||||||||||||||
Balance as of December 31, 2020
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19,998,745
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1,397
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88,853
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(85,331
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)
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4,919
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||||||||||||||
Changes during the six months ended June 30, 2021 (unaudited):
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||||||||||||||||||||
Exercise of options and debt conversion
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5,962,651
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465
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7,236
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-
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7,701
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Net loss
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-
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- |
-
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(2,267
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) |
(2,267
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)
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|||||||||||||
Balance as of June 30, 2021 (unaudited)
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25,961,396
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1,862
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96,089
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(87,598
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)
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10,353
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Six months ended June 30
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|||||||
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2021
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2020
|
||||||
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Unaudited
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Unaudited
|
||||||
Cash flows from operating activities:
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||||||||
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||||||||
Net loss
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(2,267
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)
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(376
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)
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||||
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||||||||
Adjustments to reconcile net income to net cash used in operating activities:
|
||||||||
Depreciation and amortization
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988
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1,251
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||||||
Foreign Exchange differences
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(131
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)
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-
|
|||||
Increase in deferred tax
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-
|
450
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||||||
Increase in trade receivables, net
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(1,147
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)
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(113
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)
|
||||
Decrease (Increase) in other accounts receivable and prepaid expenses
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2
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(171
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)
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|||||
Increase in inventories, net
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(1,163
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)
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(389
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)
|
||||
Increase in other non-current assets
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232
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-
|
||||||
Increase (decrease) in trade payables
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(988
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)
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(65
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)
|
||||
Increase in employees and payroll accruals
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(70
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)
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(637
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)
|
||||
Increase (decrease) in accrued severance pay
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(136
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)
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(32
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)
|
||||
Increase in accrued expenses, other liabilities, related parties and accrued interest
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492
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(1,514
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)
|
|||||
Net cash used in operating activities
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(4,188
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)
|
(1,596
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)
|
||||
|
||||||||
Cash flows from investing activities:
|
||||||||
Purchase of property and equipment
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(492
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)
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-
|
|||||
Decrease (Increase) in severance pay fund
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127
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19
|
||||||
Capitalization of software development costs
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(439
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)
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(405
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)
|
||||
Net cash provided by (used in) investing activities
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(804
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)
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(386
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)
|
||||
|
||||||||
Cash flows from financing activities:
|
||||||||
Short & Long-term loan, net
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8,290
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3,086
|
||||||
Related parties
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(1,391
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)
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(384
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)
|
||||
Proceeds from exercise of options, warrants and debt conversion, net |
5,022
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-
|
||||||
Liability for future earn-out
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-
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(30
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)
|
|||||
Net cash provided by (used in) financing activities
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11,921
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2,672
|
||||||
|
||||||||
Increase (decrease) in cash, cash equivalents and restricted cash
|
6,929
|
690
|
||||||
Cash, cash equivalents and restricted cash at the beginning of the year
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3,952
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1,210
|
||||||
|
||||||||
Cash, cash equivalents and restricted cash at the end of the period
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10,881
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1,900
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NOTE 1: GENERAL
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a. |
SuperCom Ltd. (collectively with its subsidiaries referred to in this report as “we,” “us,” “our” or the “Company”) is an Israeli resident company organized in 1988 in Israel. On January 24, 2013 the Company changed its name back to SuperCom Ltd, its original name, from Vuance Ltd. On September 12, 2013, 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. Previously, the Company’s ordinary shares traded on the OTCQB Market.
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b. |
Liquidity Analysis
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c. |
Senior Secured Credit Facility
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In June 2021, the Company secured through the issuance of a subordinated note, additional gross proceeds of $5,000, with similar terms to the $7,000 note described above.
d. |
Covid-19 Effect and Risk
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NOTE 2: UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
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NOTE 3: INVENTORIES, NET
|
|
June 30,
|
December 31,
|
||||||
|
2021
|
2020
|
||||||
|
$
|
$
|
||||||
Raw materials, parts and supplies
|
1,558
|
1,256
|
||||||
Finished products
|
2,009
|
1,148
|
||||||
|
||||||||
|
3,567
|
2,404
|
NOTE 4: OTHER INTANGIBLE ASSETS, NET
|
|
June 30,
|
December 31,
|
||||||
|
2021
|
2020
|
||||||
|
$
|
$
|
||||||
Customer relationship & Other
|
1,094
|
1,250
|
||||||
IP & Technology
|
2,472
|
3,060
|
||||||
Capitalized software development costs
|
2,290
|
1,960
|
||||||
|
||||||||
|
5,856
|
6,270
|
NOTE 5: COMMITMENTS AND CONTINGENT LIABILITIES – LITIGIATION
|
As part of the acquisition of the SmartID division of On Track Innovations Ltd., or OTI, the Company assumed a dispute with Merwell Inc. (“Merwell”). Merwell has alleged that it has not received the full payment it is entitled to for its services in respect of a drivers’ license project. OTI alleged that Merwell breached its commitments under the service agreement and acted in concert with third parties to damage OTI’s business activities. This matter is now subject to an arbitration proceeding. An appropriate provision is included in the financial statements.
Following the date of the financial statements in this report, on August 10th 2021, the Company had signed an agreement with OTI and the abovementioned arbitration is now closed.