Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended |
Jun. 30, 2014 | |
Document And Entity Information [Abstract] | ' |
Document Type | '6-K |
Amendment Flag | 'false |
Document Period End Date | 30-Jun-14 |
Entity Registrant Name | 'ICTS INTERNATIONAL N V |
Entity Central Index Key | '0001010134 |
Current Fiscal Year End Date | '--12-31 |
Document Fiscal Period Focus | 'Q2 |
Document Fiscal Year Focus | '2014 |
Entity Filer Category | 'Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 8,061,698 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS: | ' | ' |
Cash and cash equivalents | $3,028 | $3,001 |
Restricted cash | 3,369 | 6,996 |
Accounts receivable, net | 22,801 | 15,102 |
Deferred tax assets, net | 118 | 114 |
Prepaid expenses and other current assets | 1,345 | 984 |
Current assets from discontinued operations | 93 | 741 |
Total current assets | 30,754 | 26,938 |
Property and equipment, net | 1,543 | 1,492 |
Goodwill | 314 | 314 |
Other assets | 554 | 395 |
Total assets | 33,165 | 29,139 |
CURRENT LIABILITIES: | ' | ' |
Notes payable - banks | 11,041 | 12,653 |
Accounts payable | 2,895 | 2,141 |
Accrued expenses and other current liabilities | 22,668 | 16,474 |
Current liabilities from discontinued operations | 22 | 847 |
Total current liabilities | 36,626 | 32,115 |
Convertible notes payable to related party, including accrued interest | 38,815 | 36,570 |
Liability to United States Department of Labor | 100 | 259 |
Other liabilities | 549 | 551 |
Total liabilities | 76,090 | 69,495 |
SHAREHOLDERS' DEFICIT: | ' | ' |
Common stock, 0.45 Euro par value; 33,333,334 shares authorized; 8,061,698 shares issued and outstanding as of June 30, 2014 and 8,041,698 as of December 31, 2013 | 4,507 | 4,495 |
Additional paid-in capital | 20,949 | 20,927 |
Accumulated deficit | -61,175 | -58,625 |
Accumulated other comprehensive loss | -7,206 | -7,153 |
Total shareholders' deficit | -42,925 | -40,356 |
Total liabilities and shareholders' deficit | $33,165 | $29,139 |
CONSOLIDATED_BALANCE_SHEETS_PA
CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) (EUR €) | Jun. 30, 2014 | Dec. 31, 2013 |
CONSOLIDATED BALANCE SHEETS [Abstract] | ' | ' |
Common stock, par value per share | € 0.45 | € 0.45 |
Common stock, shares authorized | 33,333,334 | 33,333,334 |
Common stock, shares issued | 8,061,698 | 8,041,698 |
Common stock, shares outstanding | 8,061,698 | 8,041,698 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (USD $) | 6 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS [Abstract] | ' | ' |
Revenue | $83,006 | $56,378 |
Cost of revenue | 74,578 | 49,753 |
GROSS PROFIT | 8,428 | 6,625 |
Operating expenses: | ' | ' |
Research and development | 1,095 | 820 |
Selling, general, and administrative | 8,419 | 9,529 |
Total operating expenses | 9,514 | 10,349 |
OPERATING LOSS | -1,086 | -3,724 |
Other expense, net | -1,369 | -1,088 |
LOSS BEFORE INCOME TAX BENEFIT (EXPENSE) | -2,455 | -4,812 |
Income tax benefit (expense) | -54 | 1,041 |
LOSS FROM CONTINUING OPERATIONS | -2,509 | -3,771 |
Profit (Loss) from discontinued operations | -41 | 1,890 |
NET LOSS | -2,550 | -1,881 |
PROFIT (LOSS) PER SHARE - BASIC AND DILUTED | ' | ' |
Continuing operations | ($0.31) | ($0.47) |
Discontinued operations | ($0.01) | $0.24 |
Net loss | ($0.32) | ($0.23) |
Weighted average number of shares outstanding | 8,061,698 | 8,036,698 |
COMPREHENSIVE LOSS | ' | ' |
Net loss | -2,550 | -1,881 |
Translation adjustment | -53 | -89 |
Comprehensive loss | ($2,603) | ($1,970) |
Basis_of_Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2014 | |
Basis of Presentation [Abstract] | ' |
Basis of Presentation | ' |
NOTE 1 - BASIS OF PRESENTATION | |
General | |
The accompanying condensed unaudited consolidated financial statements for the six months ended June 30, 2014 have been prepared by the Company, in accordance with accounting principles generally accepted in the United States of America or US GAAP for financial information. These financial statements reflect all adjustments, consisting of normal recurring adjustments and accruals, which are, in the opinion of management, necessary for a fair presentation of the financial position of the Company as of June 30, 2014 and the results of operations for the six months then ended. Accordingly, certain information and footnote disclosures normally included in annual financial statements prepared in accordance with US GAAP have been condensed or omitted. These financial statements should be read in conjunction with the audited financial statements and notes thereto of the Company for the year ended December 31, 2013 which are included in the Company's Form 20-F filed with the Securities and Exchange Commission. The results of operations presented are not necessarily indicative of the results to be expected for future quarters or for the year ending December 31, 2014. | |
The following discussion and analysis should be read in conjunction with the financial statements, related notes and other information included in this report and with the Risk Factors included in Part 1 Item 3 in our Annual Report on Form 20-F for the year ended December 31, 2013, filed with the SEC. | |
This Report contains statements that may constitute “forward-looking statements”. Generally, forward-looking statements include words or phrases such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,” “projects,” “could,” “may,” “might,” “should,” “will”, the negative of such terms, and words and phrases of similar import. Such statements are based on management's current expectations and are subject to a number of risks and uncertainties. These risks and uncertainties could cause our actual results to differ materially from those described in the forward-looking statements. Any forward-looking statement represents our expectations or forecasts only as of the date it was made and should not be relied upon as representing its expectations or forecasts as of any subsequent date. Except as required by law, we undertake no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, even if our expectations or forecasts change. | |
Reclassifications | |
Certain amounts, related primarily to discontinued operations and income taxes payable in the prior year balance sheet, statements of operations and comprehensive loss have been reclassified to conform the current period presentation. | |
Organization
Organization | 6 Months Ended |
Jun. 30, 2014 | |
Organization [Abstract] | ' |
Organization | ' |
NOTE 2 - ORGANIZATION | |
Description of Business | |
ICTS International N.V. (“ICTS”) was established by the Department of Justice in Amstelveen, Netherlands on October 9, 1992. ICTS and subsidiaries (collectively referred to as, the “Company”) operate in three reportable segments: (a) Corporate (b) Airport security and other aviation services and (c) Technology. The corporate segment does not generate revenue and contains primarily non-operational expenses. The airport security and other aviation services segment provide security and other services to airlines and airport authorities, predominantly in Europe and the United States of America. The technology segment is predominantly involved in the development and sale of identity security software predominantly in Europe. | |
Financial Condition | |
The Company has a working capital deficit and a history of recurring losses from continuing operations and negative cash flows from continuing operations. As of June 30, 2014 and December 31, 2013, the Company has a working capital deficit of $5,872 and $5,177, respectively. During the periods ended June 30, 2014 and 2013, the Company incurred losses from continuing operations of $2,509 and $3,771, respectively. Collectively, these factors raise substantial doubt about the Company's ability to continue as a going concern. | |
Management believes that the Company's operating cash flows and related party/third party financing activities will provide it with sufficient funds to meet its obligations and execute its business plan for the next twelve months. However, there are no assurances that management's plans to generate sufficient cash flows from operations and obtain additional financing from related parties/third parties will be successful. In May 2014, the Company increased its borrowing capacity under the convertible notes payable to related party to $37,000. | |
The accompanying consolidated financial statements do not include any adjustments relating to the recoverability and classification of asset carrying amounts or the amount and classification of liabilities that might result should the Company be unable to continue as a going concern. |
Certain_transactions
Certain transactions | 6 Months Ended |
Jun. 30, 2014 | |
Certain transactions [Abstract] | ' |
Certain transactions | ' |
NOTE 3 - CERTAIN TRANSACTIONS | |
IRS Settlement | |
The Company was subject to a tax examination for one of its subsidiaries in the United States by the Internal Revenue Service ‘IRS' for the tax years 2002 to 2004. In connection with this examination, a subsidiary was required to provide information regarding its treatment of certain expenses. The IRS proposed a number of adjustments to the subsidiary's filed income tax returns for the tax years 2002 to 2004, which collectively resulted in an assessed income tax liability of $7,325. Management vigorously contested the merit of the proposed adjustments and established a reserve of $10,690. In July 2011 and January 2012, the Company entered into arrangements with the IRS to settle all outstanding claims against it for $3,329, including $877 in interest. In August 2012, the Company filed an Offer in Compromise Form with the IRS to reduce the amount payable to the IRS under the settlements citing unfavorable financial condition of its American subsidiaries. In July 2013, the IRS accepted the Company's offer to settle all outstanding amounts for $200, which has been paid in full as of December 2013. | |
The total amount of unrecognized income tax benefits regarding the IRS in the accompanying consolidated statements of operations is $0 and $2,346, of which $0 and $1,221 is presented as part of the discontinued operations as of June 30, 2014 and 2013, respectively. | |
The total amount of unrecognized interest income regarding the IRS in the accompanying consolidated statements of operations is $0 and $906, of which $0 and $626 is presented as part of the discontinued operations as of June 30, 2014 and 2013, respectively. | |
Acquisition of Company in Germany | |
During the second quarter of 2013 the Company purchased a German Company, which operates in the field of professional operating security services and specializes in passenger and freight control at Frankfurt Airport. The operations of the new subsidiary are consolidated in the accompanying consolidated statements of operations starting from May 1, 2013. During the period ended June 30, 2014 and 2013 the German's subsidiary revenue was $21,883 and $3,330, respectively. | |
Discontinued_operations
Discontinued operations | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Discontinued operations [Abstract] | ' | |||||||||||||
Discontinued operations | ' | |||||||||||||
NOTE 4 - DISCONTINUED OPERATIONS | ||||||||||||||
In December 2005, the Company committed to a plan to cease the operations of its entertainment segment in the United States. Accordingly, as of that date, the assets, liabilities and results of operations of the entertainment segment were classified as discontinued operations in the Company's consolidated financial statements. | ||||||||||||||
In connection with the Company's settlement of certain assessments with the IRS, the Company recognized $0 and $1,847 of changes in uncertain income tax positions in the periods ended June 30, 2014 and 2013, respectively including interest, related to its entertainment segment in income from discontinued operations. | ||||||||||||||
During the year ended December 31, 2012, the Company committed to a plan to cease the operations of its subsidiary in France (I-SEC France) and in November 2012 transferred control of the subsidiary to a court-appointed liquidator. The subsidiary provided aviation security services in France. | ||||||||||||||
During the year ended December 31, 2012, the Company ceased the operations of its subsidiaries in Romania (I-SEC Romania) and Hungary (I-SEC Hungary), which provided aviation security services in the respective countries. The subsidiaries are in the process of liquidation. | ||||||||||||||
During the year ended December 31, 2013 the Company ceased the operations of its subsidiaries in the United Kingdom (I-SEC UK), and Denmark (I-SEC Denmark). In addition, the Company committed to a plan to cease operations of its subsidiary in Belgium (I-SEC Belgium). All of the subsidiaries provided aviation security services in the respective countries. | ||||||||||||||
A summary of the Company's assets and liabilities from discontinued operations as of June 30, 2014 and 2013 are as follows: | ||||||||||||||
June 30, | December 31, | |||||||||||||
2014 | 2013 | |||||||||||||
ASSETS | ||||||||||||||
CURRENT ASSETS: | ||||||||||||||
Cash and cash equivalents | $ | 21 | $ | 259 | ||||||||||
Accounts receivable, net | - | 361 | ||||||||||||
Prepaid expenses and other current assets | 72 | 121 | ||||||||||||
Total current assets from discontinued operations | $ | 93 | $ | 741 | ||||||||||
LIABILITIES | ||||||||||||||
CURRENT LIABILITIES: | ||||||||||||||
Accounts payable | $ | 18 | $ | 259 | ||||||||||
Accrued expenses and other current liabilities | 4 | 588 | ||||||||||||
Total current liabilities from discontinued operations | $ | 22 | $ | 847 | ||||||||||
A summary of the Company's results from discontinued operations for the periods ended June 30, 2014 and 2013 is as follows: | ||||||||||||||
Period ended, June 30, | ||||||||||||||
2014 | 2013 | |||||||||||||
Revenue | $ | 93 | $ | 2,706 | ||||||||||
Cost of revenue | 106 | 2,261 | ||||||||||||
GROSS PROFIT (EXCESS OF COSTS OF REVENUES OVER REVENUE) | (13 | ) | 445 | |||||||||||
Selling, general and administrative expenses | 28 | 408 | ||||||||||||
OPERATING PROFIT (LOSS) | (41 | ) | 37 | |||||||||||
Other income , net | - | 629 | ||||||||||||
Income tax benefit | - | 1,224 | ||||||||||||
Income (loss) from discontinued operations | $ | (41 | ) | $ | 1,890 | |||||||||
Convertible_Notes_Payable_to_R
Convertible Notes Payable to Related Party | 6 Months Ended |
Jun. 30, 2014 | |
Convertible Notes Payable to Related Party [Abstract] | ' |
Convertible Notes Payable to Related Party | ' |
NOTE 5 – CONVERTIBLE NOTES PAYABLE TO RELATED PARTY | |
In December 2012, the Company entered into a new arrangement with an entity related to its main shareholder, which replaced all previous arrangements between the parties, to provide it with up to $27,000 in revolving loans through November 2015. The term of the arrangement can be automatically extended for four additional six-month periods at the option of the holder. All outstanding borrowings from previous arrangements were applied to the borrowing capacity of the new arrangement. Loans received under the arrangement bear interest, which is compounded semi-annually and payable at maturity, at the interest rate charged by the Company's European commercial bank (LIBOR plus 6% for U.S. dollar-denominated loans and the base rate plus 2% for Euro-denominated loans). The arrangement is secured by a 26% interest in one of the Company's European subsidiaries. In connection with the arrangement, the holder was granted an option to convert outstanding notes payable under the arrangement into the Company's common stock at a price of $2.10 per share. The Company determined that the new arrangement did not represent a substantive modification and, therefore, it was not necessary to evaluate whether the conversion feature qualified as a free-standing derivative instrument or contained any intrinsic value which would be considered beneficial. | |
In November 2013, the Company entered into a new arrangement with an entity related to its main shareholder, which replaced all previous arrangements between the parties, to provide it with up to $32,000 in revolving loans through November 2015. The term of the arrangement can be automatically extended for four additional six-month periods at the option of the holder. All outstanding borrowings from previous arrangements were applied to the borrowing capacity of the new arrangement. Loans received under the arrangement bear interest, which is compounded semi-annually and payable at maturity, at the interest rate charged by the Company's European commercial bank (LIBOR plus 6% for U.S. dollar-denominated loans and the base rate plus 2% for Euro-denominated loans). The arrangement is secured by a 26% interest in one of the Company's European subsidiaries. In connection with the arrangement, the holder was granted an option to convert outstanding notes payable under the arrangement into the Company's common stock at a price of $1.5 per share. The Company determined that the new arrangement did not represent a substantive modification and, therefore, it was not necessary to evaluate whether the conversion feature qualified as a free-standing derivative instrument or contained any intrinsic value which would be considered beneficial. | |
In May 2014, the Company entered into a new oral arrangement with an entity related to its main shareholder, which replaced all previous arrangements between the parties, to provide it with up to $37,000 in revolving loans through December 2016. The term of the arrangement can be automatically extended for four additional six-month periods at the option of the holder. All outstanding borrowings from previous arrangements were applied to the borrowing capacity of the new arrangement. Loans received under the arrangement bear interest, which is compounded semi-annually and payable at maturity, at the interest rate charged by the Company's European commercial bank (LIBOR plus 6% for U.S. dollar-denominated loans and the base rate plus 2% for Euro-denominated loans). The arrangement is secured by a 26% interest in one of the Company's European subsidiaries. In connection with the arrangement, the holder was granted an option to convert outstanding notes payable under the arrangement into the Company's common stock at a price of $1.5 per share. The Company determined that the new arrangement did not represent a substantive modification and, therefore, it was not necessary to evaluate whether the conversion feature qualified as a free-standing derivative instrument or contained any intrinsic value which would be considered beneficial. | |
The Company's weighted average interest during the periods ended June 30, 2014 and 2013 is 6.08 and 6.20%, respectively. | |
At June 30, 2014 and December 31, 2013, convertible notes payable to related party consist of $31,013 and $29,870, respectively, in principal and $7,802 and $6,700, respectively, in accrued interest. Interest expense related to these notes is $1,102 and $919 for the periods ended June 30, 2014 and 2013, respectively. |
Segment_and_Geographical_Infor
Segment and Geographical Information | 6 Months Ended | ||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||
Segment and Geographical Information [Abstract] | ' | ||||||||||||||||||||||||||
Segment and Geographical Information | ' | ||||||||||||||||||||||||||
NOTE 6 – SEGMENT AND GEOGRAPHICAL INFORMATION | |||||||||||||||||||||||||||
The Company operates in three reportable segments: (a) Corporate (b) Airport security and other aviation services and (c) Technology. The corporate segment does not generate revenue and contains primarily non-operational expenses. The airport security and other aviation services segment provide security and other aviation services to airlines and airport authorities, predominantly in Europe and the United States. The technology segment is predominantly involved in the development and sale of identity security software to financial and other institutions, predominantly in Europe. All inter-segment transactions are eliminated in consolidation. The accounting policies of the segments are the same as the accounting policies of the Company as a whole. | |||||||||||||||||||||||||||
The chief operating decision maker reviews the operating results of these reportable segments. The performance of the reportable segments is based primarily on loss (profit) from continuing operations. | |||||||||||||||||||||||||||
Airport | |||||||||||||||||||||||||||
Security | |||||||||||||||||||||||||||
and Other | |||||||||||||||||||||||||||
Aviation | |||||||||||||||||||||||||||
Corporate | Services | Technology | Total | ||||||||||||||||||||||||
Six months ended June 30, 2014: | |||||||||||||||||||||||||||
Revenue | $ | - | $ | 82,610 | $ | 396 | $ | 83,006 | |||||||||||||||||||
Depreciation and amortization | - | 381 | 50 | 431 | |||||||||||||||||||||||
Loss (Profit) from continuing operations | 1,325 | (561 | ) | 1,745 | 2,509 | ||||||||||||||||||||||
Total assets | 584 | 32,229 | 259 | 33,072 | |||||||||||||||||||||||
Six months ended June 30, 2013: | |||||||||||||||||||||||||||
Revenue | $ | - | $ | 56,036 | $ | 342 | $ | 56,378 | |||||||||||||||||||
Depreciation and amortization | 1 | 326 | 41 | 368 | |||||||||||||||||||||||
Loss from continuing operations | 705 | 1,472 | 1,594 | 3,771 | |||||||||||||||||||||||
Total assets | 384 | 24,070 | 541 | 24,995 | |||||||||||||||||||||||
The following table sets forth, for the periods indicated, revenue generated by country: | |||||||||||||||||||||||||||
Six months ended June 30, | |||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||
Netherlands | $ | 34,285 | $ | 26,172 | |||||||||||||||||||||||
Germany | 21,883 | 3,330 | |||||||||||||||||||||||||
United States of America | 19,555 | 19,494 | |||||||||||||||||||||||||
Other | 7,284 | 7,382 | |||||||||||||||||||||||||
Total | $ | 83,006 | $ | 56,378 | |||||||||||||||||||||||
The following table sets forth, for the periods indicated, property and equipment, net of accumulated depreciation and amortization by country: | |||||||||||||||||||||||||||
June 30, | |||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||
Netherlands | $ | 532 | $ | 616 | |||||||||||||||||||||||
Germany | 239 | 27 | |||||||||||||||||||||||||
United States of America | 433 | 490 | |||||||||||||||||||||||||
Other | 339 | 413 | |||||||||||||||||||||||||
Total | $ | 1,543 | $ | 1,492 | |||||||||||||||||||||||
Basis_of_Presentation_Policy
Basis of Presentation (Policy) | 6 Months Ended |
Jun. 30, 2014 | |
Basis of Presentation [Abstract] | ' |
General | ' |
General | |
The accompanying condensed unaudited consolidated financial statements for the six months ended June 30, 2014 have been prepared by the Company, in accordance with accounting principles generally accepted in the United States of America or US GAAP for financial information. These financial statements reflect all adjustments, consisting of normal recurring adjustments and accruals, which are, in the opinion of management, necessary for a fair presentation of the financial position of the Company as of June 30, 2014 and the results of operations for the six months then ended. Accordingly, certain information and footnote disclosures normally included in annual financial statements prepared in accordance with US GAAP have been condensed or omitted. These financial statements should be read in conjunction with the audited financial statements and notes thereto of the Company for the year ended December 31, 2013 which are included in the Company's Form 20-F filed with the Securities and Exchange Commission. The results of operations presented are not necessarily indicative of the results to be expected for future quarters or for the year ending December 31, 2014. | |
The following discussion and analysis should be read in conjunction with the financial statements, related notes and other information included in this report and with the Risk Factors included in Part 1 Item 3 in our Annual Report on Form 20-F for the year ended December 31, 2013, filed with the SEC. | |
This Report contains statements that may constitute “forward-looking statements”. Generally, forward-looking statements include words or phrases such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,” “projects,” “could,” “may,” “might,” “should,” “will”, the negative of such terms, and words and phrases of similar import. Such statements are based on management's current expectations and are subject to a number of risks and uncertainties. These risks and uncertainties could cause our actual results to differ materially from those described in the forward-looking statements. Any forward-looking statement represents our expectations or forecasts only as of the date it was made and should not be relied upon as representing its expectations or forecasts as of any subsequent date. Except as required by law, we undertake no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, even if our expectations or forecasts change. | |
Reclassifications | ' |
Reclassifications | |
Certain amounts, related primarily to discontinued operations and income taxes payable in the prior year balance sheet, statements of operations and comprehensive loss have been reclassified to conform the current period presentation. | |
Discontinued_operations_Tables
Discontinued operations (Tables) | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Discontinued operations [Abstract] | ' | |||||||||||||
Schedule of Discontinued Operations | ' | |||||||||||||
A summary of the Company's assets and liabilities from discontinued operations as of June 30, 2014 and 2013 are as follows: | ||||||||||||||
June 30, | December 31, | |||||||||||||
2014 | 2013 | |||||||||||||
ASSETS | ||||||||||||||
CURRENT ASSETS: | ||||||||||||||
Cash and cash equivalents | $ | 21 | $ | 259 | ||||||||||
Accounts receivable, net | - | 361 | ||||||||||||
Prepaid expenses and other current assets | 72 | 121 | ||||||||||||
Total current assets from discontinued operations | $ | 93 | $ | 741 | ||||||||||
LIABILITIES | ||||||||||||||
CURRENT LIABILITIES: | ||||||||||||||
Accounts payable | $ | 18 | $ | 259 | ||||||||||
Accrued expenses and other current liabilities | 4 | 588 | ||||||||||||
Total current liabilities from discontinued operations | $ | 22 | $ | 847 | ||||||||||
A summary of the Company's results from discontinued operations for the periods ended June 30, 2014 and 2013 is as follows: | ||||||||||||||
Period ended, June 30, | ||||||||||||||
2014 | 2013 | |||||||||||||
Revenue | $ | 93 | $ | 2,706 | ||||||||||
Cost of revenue | 106 | 2,261 | ||||||||||||
GROSS PROFIT (EXCESS OF COSTS OF REVENUES OVER REVENUE) | (13 | ) | 445 | |||||||||||
Selling, general and administrative expenses | 28 | 408 | ||||||||||||
OPERATING PROFIT (LOSS) | (41 | ) | 37 | |||||||||||
Other income , net | - | 629 | ||||||||||||
Income tax benefit | - | 1,224 | ||||||||||||
Income (loss) from discontinued operations | $ | (41 | ) | $ | 1,890 | |||||||||
Segment_and_Geographical_Infor1
Segment and Geographical Information (Tables) | 6 Months Ended | ||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||
Segment and Geographical Information [Abstract] | ' | ||||||||||||||||||||||||||
Summary of Operating Results by Segment | ' | ||||||||||||||||||||||||||
Airport | |||||||||||||||||||||||||||
Security | |||||||||||||||||||||||||||
and Other | |||||||||||||||||||||||||||
Aviation | |||||||||||||||||||||||||||
Corporate | Services | Technology | Total | ||||||||||||||||||||||||
Six months ended June 30, 2014: | |||||||||||||||||||||||||||
Revenue | $ | - | $ | 82,610 | $ | 396 | $ | 83,006 | |||||||||||||||||||
Depreciation and amortization | - | 381 | 50 | 431 | |||||||||||||||||||||||
Loss (Profit) from continuing operations | 1,325 | (561 | ) | 1,745 | 2,509 | ||||||||||||||||||||||
Total assets | 584 | 32,229 | 259 | 33,072 | |||||||||||||||||||||||
Six months ended June 30, 2013: | |||||||||||||||||||||||||||
Revenue | $ | - | $ | 56,036 | $ | 342 | $ | 56,378 | |||||||||||||||||||
Depreciation and amortization | 1 | 326 | 41 | 368 | |||||||||||||||||||||||
Loss from continuing operations | 705 | 1,472 | 1,594 | 3,771 | |||||||||||||||||||||||
Total assets | 384 | 24,070 | 541 | 24,995 | |||||||||||||||||||||||
Schedule of Revenues by Geographic Area | ' | ||||||||||||||||||||||||||
Six months ended June 30, | |||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||
Netherlands | $ | 34,285 | $ | 26,172 | |||||||||||||||||||||||
Germany | 21,883 | 3,330 | |||||||||||||||||||||||||
United States of America | 19,555 | 19,494 | |||||||||||||||||||||||||
Other | 7,284 | 7,382 | |||||||||||||||||||||||||
Total | $ | 83,006 | $ | 56,378 | |||||||||||||||||||||||
Schedule of Property and Equipment by Geographic Area | ' | ||||||||||||||||||||||||||
June 30, | |||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||
Netherlands | $ | 532 | $ | 616 | |||||||||||||||||||||||
Germany | 239 | 27 | |||||||||||||||||||||||||
United States of America | 433 | 490 | |||||||||||||||||||||||||
Other | 339 | 413 | |||||||||||||||||||||||||
Total | $ | 1,543 | $ | 1,492 | |||||||||||||||||||||||
Organization_Details
Organization (Details) (USD $) | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Organization [Abstract] | ' | ' | ' |
Working capital | ($5,872) | ' | ($5,177) |
Loss (Profit) from continuing operations | -2,509 | -3,771 | ' |
Borrowing capacity under the convertible notes payable to related party | $37,000 | ' | ' |
Certain_transactions_Details
Certain transactions (Details) (USD $) | 6 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | ||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jul. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
IRS Tax Examination [Member] | IRS Tax Examination [Member] | IRS Tax Examination [Member] | IRS Tax Examination [Member] | IRS Tax Examination [Member] | IRS Tax Examination [Member] | IRS Tax Examination [Member] | IRS Tax Examination [Member] | |||
Discontinued Operations [Member] | Discontinued Operations [Member] | Minimum [Member] | Maximum [Member] | |||||||
Income Tax Examination [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Years under examination | ' | ' | ' | ' | ' | ' | ' | ' | '2002 | '2004 |
Assessed income tax liability | ' | ' | ' | $7,325 | ' | ' | ' | ' | ' | ' |
Reserve for interest and penalties | ' | ' | ' | 10,690 | ' | ' | ' | ' | ' | ' |
Outstanding tax claims | ' | ' | ' | 3,329 | ' | ' | ' | ' | ' | ' |
Outstanding tax claims, interest | ' | ' | ' | 877 | ' | ' | ' | ' | ' | ' |
Accepted Offer In Compromise, amount | ' | ' | 200 | ' | ' | ' | ' | ' | ' | ' |
Unrecognized tax benefits | ' | ' | ' | ' | 0 | 2,346 | 0 | 1,221 | ' | ' |
Unrecognized interest income | ' | ' | ' | ' | 0 | 906 | 0 | 626 | ' | ' |
Acquisition of Company in Germany | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Subsidiary revenue | $21,883 | $3,330 | ' | ' | ' | ' | ' | ' | ' | ' |
Discontinued_operations_Narrat
Discontinued operations (Narrative) (Details) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Discontinued operations [Abstract] | ' | ' |
Change in uncertain income tax positions, including interest and penalties | $0 | $1,847 |
Discontinued_operations_Summar
Discontinued operations (Summary of Assets and Liabilities from Discontinued Operations) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS: | ' | ' |
Cash and cash equivalents | $21 | $259 |
Accounts receivable, net | ' | 361 |
Prepaid expenses and other current assets | 72 | 121 |
Total current assets from discontinued operations | 93 | 741 |
CURRENT LIABILITIES: | ' | ' |
Accounts payable | 18 | 259 |
Accrued expenses and other current liabilities | 4 | 588 |
Total current liabilities from discontinued operations | $22 | $847 |
Discontinued_operations_Summar1
Discontinued operations (Summary of Results from Discontinued Operations) (Details) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Discontinued operations [Abstract] | ' | ' |
Revenue | $93 | $2,706 |
Cost of revenue | 106 | 2,261 |
GROSS PROFIT (EXCESS OF COSTS OF REVENUES OVER REVENUE) | -13 | 445 |
Selling, general and administrative expenses | 28 | 408 |
OPERATING PROFT (LOSS) | -41 | 37 |
Other income, net | ' | 629 |
Income tax benefit | ' | 1,224 |
Income (loss) from discontinued operations | ($41) | $1,890 |
Convertible_Notes_Payable_to_R1
Convertible Notes Payable to Related Party (Details) (Convertible Debt [Member], USD $) | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Debt Instrument [Line Items] | ' | ' | ' |
Weighted average interest rate | 6.08% | 6.20% | ' |
Convertible notes payable | $31,013 | ' | $29,870 |
Accrued interest | 7,802 | ' | 6,700 |
Interest expense | 1,102 | 919 | ' |
Note One [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Maximum borrowing capacity | 27,000 | ' | ' |
Maturity date | 30-Nov-15 | ' | ' |
Secured interest rate | 26.00% | ' | ' |
Conversion price | $2.10 | ' | ' |
Note One [Member] | London Interbank Offered Rate (LIBOR) [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Basis spread | 6.00% | ' | ' |
Note One [Member] | Base Rate [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Basis spread | 2.00% | ' | ' |
Note Two [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Maximum borrowing capacity | 32,000 | ' | ' |
Maturity date | 30-Nov-15 | ' | ' |
Secured interest rate | 26.00% | ' | ' |
Conversion price | $1.50 | ' | ' |
Note Two [Member] | London Interbank Offered Rate (LIBOR) [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Basis spread | 6.00% | ' | ' |
Note Two [Member] | Base Rate [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Basis spread | 2.00% | ' | ' |
Note Three [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Maximum borrowing capacity | $37,000 | ' | ' |
Maturity date | 31-Dec-16 | ' | ' |
Secured interest rate | 26.00% | ' | ' |
Conversion price | $1.50 | ' | ' |
Note Three [Member] | London Interbank Offered Rate (LIBOR) [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Basis spread | 6.00% | ' | ' |
Note Three [Member] | Base Rate [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Basis spread | 2.00% | ' | ' |
Segment_and_Geographical_Infor2
Segment and Geographical Information (Operating Results of Reportable Segments) (Details) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Segment Reporting Information [Line Items] | ' | ' |
Revenue | $83,006 | $56,378 |
Depreciation and amortization | 431 | 368 |
Loss (Profit) from continuing operations | 2,509 | 3,771 |
Total assets | 33,072 | 24,995 |
Corporate [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Revenue | ' | ' |
Depreciation and amortization | ' | 1 |
Loss (Profit) from continuing operations | 1,325 | 705 |
Total assets | 584 | 384 |
Airport Security and Other Aviation Services [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Revenue | 82,610 | 56,036 |
Depreciation and amortization | 381 | 326 |
Loss (Profit) from continuing operations | -561 | 1,472 |
Total assets | 32,229 | 24,070 |
Technology [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Revenue | 396 | 342 |
Depreciation and amortization | 50 | 41 |
Loss (Profit) from continuing operations | 1,745 | 1,594 |
Total assets | $259 | $541 |
Segment_and_Geographical_Infor3
Segment and Geographical Information (Revenue by Country) (Details) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Segment Reporting Information [Line Items] | ' | ' |
Revenue | $83,006 | $56,378 |
Netherlands [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Revenue | 34,285 | 26,172 |
Germany [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Revenue | 21,883 | 3,330 |
United States of America [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Revenue | 19,555 | 19,494 |
Other [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Revenue | $7,284 | $7,382 |
Segment_and_Geographical_Infor4
Segment and Geographical Information (Property and Equipment by Country) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | |||
Segment Reporting Information [Line Items] | ' | ' | ' |
Property and equipment, net | $1,543 | $1,492 | $1,492 |
Netherlands [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Property and equipment, net | 532 | ' | 616 |
Germany [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Property and equipment, net | 239 | ' | 27 |
United States of America [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Property and equipment, net | 433 | ' | 490 |
Other [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Property and equipment, net | $339 | ' | $413 |