| f. | Financial assets: |
| 1) | Classification |
The Company classifies its financial assets as “Loans and Receivables.” The classification depends on the purpose for which each financial asset was acquired. The Company’s management determines the classification of financial assets at initial recognition.
Receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. The Company’s receivables include “current assets (except for prepaid expense),” “cash and cash equivalents,” “short-term bank deposits and “trade receivables.”
| 2) | Recognition and measurement |
Ordinary purchases of financial assets are recognized at the settlement date, the date on which the asset is delivered to or by the Company.
Financial assets are derecognized when the rights to receive cash flows from the assets have expired or have been transferred and the Company has transferred substantially all risks and rewards of ownership of the assets.
The Company’s Loans and Receivables are initially recognized at fair value.
| 3) | Impairment of financial assets |
The Company assesses at the end of each reporting period whether there is objective evidence that a financial asset or group of financial assets is impaired. The amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows (excluding future credit losses that have not been incurred) discounted at the financial asset’s original effective interest rate. The asset’s carrying amount is reduced and the amount of the loss is recognized in the statements of comprehensive loss.
As of December 31, 2017, the Company has not recognized any impairment.