Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2016shares | |
Document And Entity Information [Abstract] | |
Document Type | 6-K |
Amendment Flag | false |
Document Period End Date | Jun. 30, 2016 |
Entity Registrant Name | ICTS INTERNATIONAL N V |
Entity Central Index Key | 1,010,134 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Period Focus | Q2 |
Document Fiscal Year Focus | 2,016 |
Entity Filer Category | Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 10,961,698 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 8,213 | $ 7,912 |
Restricted cash | 5,531 | 4,388 |
Accounts receivable, net | 37,083 | 25,715 |
Prepaid expenses and other current assets | 4,707 | 1,987 |
Total current assets | 55,534 | 40,002 |
Deferred tax assets, net | 97 | 92 |
Property and equipment, net | 2,207 | 1,493 |
Goodwill | 314 | 314 |
Other assets | 625 | 448 |
Total assets | 58,777 | 42,349 |
CURRENT LIABILITIES: | ||
Notes payable - banks | 18,840 | 11,412 |
Accounts payable | 5,224 | 3,079 |
Accrued expenses and other current liabilities | 28,203 | 25,065 |
Income taxes payable | 84 | 89 |
Value added tax (VAT) payable | 7,758 | 5,362 |
Total current liabilities | 60,109 | 45,007 |
Convertible notes payable to related party, including accrued interest | 43,850 | 39,403 |
Other liabilities | 179 | 147 |
Total liabilities | 104,138 | 84,557 |
SHAREHOLDERS' DEFICIT: | ||
Common stock, 0.45 Euro par value; 33,333,334 shares authorized; 10,961,698 shares issued and outstanding as of June 30, 2016 and as of December 31, 2015 | 5,928 | 5,928 |
Additional paid-in capital | 21,267 | 21,267 |
Accumulated deficit | (65,207) | (61,896) |
Accumulated other comprehensive loss | (7,349) | (7,507) |
Total shareholders' deficit | (45,361) | (42,208) |
Total liabilities and shareholders' deficit | $ 58,777 | $ 42,349 |
CONSOLIDATED BALANCE SHEETS (PA
CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - € / shares | Jun. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [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 | 10,961,698 | 10,961,698 |
Common stock, shares outstanding | 10,961,698 | 10,961,698 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Income Statement [Abstract] | ||
Revenue | $ 123,932 | $ 84,998 |
Cost of revenue | 109,978 | 77,907 |
GROSS PROFIT | 13,954 | 7,091 |
Operating expenses: | ||
Research and development | 1,159 | 1,371 |
Selling, general, and administrative | 11,260 | 10,257 |
Total operating expenses | 12,419 | 11,628 |
OPERATING PROFIT (LOSS) | 1,535 | (4,537) |
Other income (expense), net | (4,540) | 295 |
LOSS BEFORE INCOME TAX EXPENSE | (3,005) | (4,242) |
Income tax expense | (306) | (12) |
NET LOSS | $ (3,311) | $ (4,254) |
LOSS PER SHARE - BASIC AND DILUTED | ||
Net loss | $ (0.30) | $ (0.53) |
Weighted average number of shares outstanding | 10,961,698 | 8,061,698 |
COMPREHENSIVE LOSS | ||
Net loss | $ (3,311) | $ (4,254) |
Translation adjustment | 158 | (159) |
Comprehensive loss | $ (3,153) | $ (4,413) |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' DEFICIT - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] | Total |
Beginning Balance at Dec. 31, 2014 | $ 4,507 | $ 20,949 | $ (57,194) | $ (7,321) | $ (39,059) |
Beginning Balance, shares at Dec. 31, 2014 | 8,061,698 | 8,061,698 | |||
Net loss | (4,254) | $ (4,254) | |||
Translation adjustment | (159) | (159) | |||
Ending Balance at Jun. 30, 2015 | $ 4,507 | 20,949 | (61,448) | (7,480) | $ (43,472) |
Ending Balance, shares at Jun. 30, 2015 | 8,061,698 | 8,061,698 | |||
Issuance of common stock | $ 1,421 | 318 | $ 1,739 | ||
Issuance of common stock, shares | 2,900,000 | ||||
Net loss | (448) | (448) | |||
Translation adjustment | (27) | (27) | |||
Ending Balance at Dec. 31, 2015 | $ 5,928 | 21,267 | (61,896) | (7,507) | $ (42,208) |
Ending Balance, shares at Dec. 31, 2015 | 10,961,698 | 10,961,698 | |||
Net loss | (3,311) | $ (3,311) | |||
Translation adjustment | 158 | 158 | |||
Ending Balance at Jun. 30, 2016 | $ 5,928 | $ 21,267 | $ (65,207) | $ (7,349) | $ (45,361) |
Ending Balance, shares at Jun. 30, 2016 | 10,961,698 | 10,961,698 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2016 | |
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, 2016 have been prepared by the Company, in accordance with accounting principles generally accepted in the United States of America (“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, 2016 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. 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, 2016. 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, 2015, 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. |
ORGANIZATION
ORGANIZATION | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [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 to customers, predominantly in Europe and the Unites States of America. 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, 2016 and December 31, 2015, the Company has a working capital deficit of and $5,005, respectively. During the periods ended June 30, 2016 and 2015, the Company incurred net losses of $3,311 and $4,254, 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. 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. |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 6 Months Ended |
Jun. 30, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | NOTE 3 - DISCONTINUED OPERATIONS During the year ended December 31, 2014, the Company committed to a plan to cease the operations of its subsidiary in Switzerland (I-SEC Switzerland), which provided aviation security services. As of June 30, 2016 and December 31, 2015, the Company had no assets or liabilities from discontinued operations. A summary of the Company's results from discontinued operations for the periods ended June 30, 2016 and 2015 is as follows: Period ended, June 30, 2016 2015 Revenue $ - $ 97 Cost of revenue - 95 Gross profit - 2 Selling, general and administrative expenses - 5 Operating loss - (3 ) Other income, net - 3 Income tax benefit - - Loss from discontinued operations $ - $ - |
NOTES PAYABLE - BANKS
NOTES PAYABLE - BANKS | 6 Months Ended |
Jun. 30, 2016 | |
Notes Payable - Banks | |
NOTES PAYABLE - BANKS | NOTE 4 – NOTES PAYABLE – BANKS United States In June 2014, the Company amended its credit facility to maximum borrowing capacity of $6,500 and amended existing financial and non-financial covenants, including the maintenance of a specified fixed charge coverage ratio. The borrowing base limitation was also amended and is equivalent to: (i) 85% of eligible accounts receivable, as defined, plus (ii) 75% of eligible unbilled receivables, as defined, plus (iii) 95% of a $1,000 standby letter of credit that was provided to the lender by an entity related to the Company’s main shareholder. In March 2015, the Company amended its credit facility with its lender. The amendment revised existing financial covenants, including the maintenance of a specified fix charge coverage ratio and maintenance of minimum monthly EBITDA requirements. As of December 31, 2015 the Company was in violation of its financial covenants. As of March 2016, the lender waived the violation. In July 2016, the Company amended its credit facility with the lender. The amendment revised the maximum borrowing capacity to $8,500 subject to the borrowing base limitations as before. Borrowings made under the credit facility bear interest, which is payable monthly, at LIBOR (subject to a floor of 1.375%) plus 4.25% per annum (5.625% as of June 30, 2016). The company evaluated the terms of the amendments and concluded that they do not constitute substantive modification. As of June 30, 2016 and December 31, 2015, the Company had approximately $7,190 and $5,569, respectively, outstanding under line of credit arrangements. As of June 30, 2016 and December 31, 2015, the Company had $200, and $572, respectively, in unused borrowing capacity under the line of credit facility. Europe In April 2015, the Company entered into a new line of credit arrangement with a commercial bank, replacing all previous lines of credit with that bank, to provide it with up to €5,500 ($6,119 as of June 30, 2016) in borrowings until further notice. Borrowings under the line of credit bear interest at LIBOR plus 3.75% per annum. The Company is also subject to an unused line fee of 0.75% per annum, which is payable quarterly. In January 2016 the Company entered into a new line of credit arrangement with the same commercial bank in Europe to provide it with up to €10,000 ($11,125 as of June 30, 2016) in borrowings, with the purpose to refinance the prevailing credit facility with this bank. Borrowings under the line of credit bear interest at LIBOR plus 3.50% per annum for the borrowed amount and 0.75% for the non-borrowed balance, which is payable quarterly. The line of credit is secured by the accounts receivable and tangible fixed assets of six of the Company’s European subsidiaries. The line of credit cannot exceed 80% of the borrowing base. The line of credit is made available until further notice. In January 2016 the company entered into a bank guarantee facility with the same commercial bank to provide it with up to €2,500 ($ 2,013 as of June 30, 2016) in guarantees, with the purpose to finance existing and new bank guarantees. Amounts under this bank guarantee facility bear interest at 1.9% per annum for the used amounts, and 0.75% for the unused balance, which is payable quarterly. The bank guarantee facility is made available until further notice and is being secured by the accounts receivable and tangible fixed assets of three of the Company’s European subsidiaries. In April 2016 the Company amended its credit facility with its lender. The amendment revised the existing borrowing amount up to €12,000 ($13,350 as of June 30, 2016) for a period of five months, till October 2016. The Company is in negotiations with the lender to keep the increase of the line of credit permanent. The line of credit cannot exceed 80% of the borrowing base. As of June 30, 2016 and December 31, 2015 the Company had approximately €10,122 ($11,261 as of June 30, 2016) in outstanding borrowings under the line of credit arrangement. The Company evaluated the terms of the amendments and concluded that they do not constitute a substantive modification. In August 2013, the Company entered into a line of credit arrangement with a commercial bank to provide it with up to €500 ($556 as of June 30, 2016) in borrowings. Borrowings under this arrangement bore interest at 3.5% per annum. The line of credit was secured by a bank guarantee provided by an entity related to the Company’s main shareholder as well as a guarantee from another bank. In July 2015, the line of credit was fully paid and the line of credit expired. In November 2013, the Company entered into a line of credit arrangement with a commercial bank to provide it with up to €1,200 ($1,335 as of June 30, 2016) in borrowings. Borrowings under the line of credit arrangement bear interest at 1.2% per annum, which is payable quarterly. The line of credit is secured by a guarantee provided by an entity related to the Company’s main shareholder. In June 2014, the borrowing capacity under the line of credit was increased up to as of June 30, 2016). In December 2015 the borrowing capacity was reduced to €350 ($389 as of June 30, 2016). As of June 30, 2016 and December 31, 2015, the Company had €350 ($389 as of June 30, 2016) in outstanding borrowings under the line of credit arrangement. The Company evaluated the terms of the amendment and concluded that they constitute a substantive modification, however, there is no effect on the financial statements of the Company. |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 6 Months Ended |
Jun. 30, 2016 | |
Accrued Expenses And Other Current Liabilities | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | NOTE 5 - ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities are as follows: June 30, December 31, 2016 2015 Accrued payroll and related costs $ 14,803 $ 12,363 Accrued vacation 6,631 4,522 Accrual for minimum wage increase 3,010 3,284 Cash overdraft 1,334 1,300 Labor union contribution 952 920 Other 1,473 2,676 Total accrued expenses and other current liabilities $ 28,203 $ 25,065 The cash overdraft balance above represents outstanding checks as of June 30, 2016 and December 31, 2015. |
CONVERTIBLE NOTES PAYABLE TO A
CONVERTIBLE NOTES PAYABLE TO A RELATED PARTY | 6 Months Ended |
Jun. 30, 2016 | |
Convertible Notes Payable To Related Party | |
CONVERTIBLE NOTES PAYABLE TO A RELATED PARTY | NOTE 6 – CONVERTIBLE NOTES PAYABLE TO A RELATED PARTY In May 2014, 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 $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 (including accrued interest) under the arrangement into the Company's common stock at a price of $1.50 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 October 2015, the Supervisory Board of Directors approved to reduce the convertible price of the unpaid interest from $1.50 per share to $0.75 per share. In addition, the loan period was extended till January 1, 2018. The terms of the arrangement can be automatically extended for four additional six months periods at the option of the holder. In September 2016, the Supervisory Board of Directors approved to increase the interest rate of the loan by one percent, retroactively, starting the first day of the loan. 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 qualifies as a free-standing derivative instrument or contained any intrinsic value which would be considered beneficial. At June 30, 2016 and December 31, 2015, convertible notes payable to a related party consist of $29,981 and $29,048, respectively, in principal and $13,869 and $10,355, respectively, in accrued interest. Interest expense related to these notes is $3,351 and $1,529 for the periods ended June 30, 2016 and 2015, respectively. |
SEGMENT AND GEOGRAPHICAL INFORM
SEGMENT AND GEOGRAPHICAL INFORMATION | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
SEGMENT AND GEOGRAPHICAL INFORMATION | NOTE 7 – 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 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 to customers, predominantly in Europe and the United States of America. All inter-segment transactions are eliminated in consolidation. 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. Amounts in the table below represent the figures of the continuing operations in the different reportable segments. Corporate Aviation Technology Total Six months ended June 30, 2016: Revenue $ - $ 122,469 $ 1,463 $ 123,932 Depreciation and amortization 3 410 20 433 Net loss (profit) 5,313 (3,124 ) 1,122 3,311 Total assets $ 523 $ 57,527 $ 727 $ 58,777 Six months ended June 30, 2015: Revenue $ - $ 84,495 $ 503 $ 84,998 Depreciation and amortization - 315 29 344 Net loss (profit) 1,266 1,126 1,862 4,254 Total assets $ 473 $ 36,277 $ 407 $ 37,157 The following table sets forth, for the periods indicated, revenue generated by country: Six months ended June 30, 2016 2015 Netherlands $ 42,522 $ 31,091 Germany 53,326 28,368 United States of America 22,585 19,969 Other 5,499 5,570 Total $ 123,932 $ 84,998 The following table sets forth, for the periods indicated, property and equipment, net of accumulated depreciation and amortization by country: June 30, 2016 2015 Netherlands $ 751 $ 510 Germany 843 173 United States of America 337 298 Other 276 250 Total $ 2,207 $ 1,231 |
BASIS OF PRESENTATION (Policy)
BASIS OF PRESENTATION (Policy) | 6 Months Ended |
Jun. 30, 2016 | |
BASIS OF PRESENTATION [Abstract] | |
General | General The accompanying condensed unaudited consolidated financial statements for the six months ended June 30, 2016 have been prepared by the Company, in accordance with accounting principles generally accepted in the United States of America (“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, 2016 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. 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, 2016. 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, 2015, 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. |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Discontinued Operations | Period ended, June 30, 2016 2015 Revenue $ - $ 97 Cost of revenue - 95 Gross profit - 2 Selling, general and administrative expenses - 5 Operating loss - (3 ) Other income, net - 3 Income tax benefit - - Loss from discontinued operations $ - $ - |
ACCRUED EXPENSES AND OTHER CU15
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Accrued Expenses And Other Current Liabilities Tables | |
Schedule of Accrued Expenses and Other Current Liabilities | June 30, December 31, 2016 2015 Accrued payroll and related costs $ 14,803 $ 12,363 Accrued vacation 6,631 4,522 Accrual for minimum wage increase 3,010 3,284 Cash overdraft 1,334 1,300 Labor union contribution 952 920 Other 1,473 2,676 Total accrued expenses and other current liabilities $ 28,203 $ 25,065 |
SEGMENT AND GEOGRAPHICAL INFO16
SEGMENT AND GEOGRAPHICAL INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Summary of Operating Results by Segment | Corporate Aviation Technology Total Six months ended June 30, 2016: Revenue $ - $ 122,469 $ 1,463 $ 123,932 Depreciation and amortization 3 410 20 433 Net loss (profit) 5,313 (3,124 ) 1,122 3,311 Total assets $ 523 $ 57,527 $ 727 $ 58,777 Six months ended June 30, 2015: Revenue $ - $ 84,495 $ 503 $ 84,998 Depreciation and amortization - 315 29 344 Net loss (profit) 1,266 1,126 1,862 4,254 Total assets $ 473 $ 36,277 $ 407 $ 37,157 |
Schedule of Revenues by Geographic Area | Six months ended June 30, 2016 2015 Netherlands $ 42,522 $ 31,091 Germany 53,326 28,368 United States of America 22,585 19,969 Other 5,499 5,570 Total $ 123,932 $ 84,998 |
Schedule of Property and Equipment by Geographic Area | June 30, 2016 2015 Netherlands $ 751 $ 510 Germany 843 173 United States of America 337 298 Other 276 250 Total $ 2,207 $ 1,231 |
ORGANIZATION (Details)
ORGANIZATION (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Working capital (deficit) | $ (4,575) | $ (5,005) | |
Net loss | $ (3,311) | $ (448) | $ (4,254) |
DISCONTINUED OPERATIONS (Detail
DISCONTINUED OPERATIONS (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | ||
Revenue | $ 97 | |
Cost of revenue | 95 | |
Gross profit | 2 | |
Selling, general and administrative expenses | 5 | |
Operating loss | (3) | |
Other income, net | 3 | |
Income tax benefit | ||
Loss from discontinued operations |
NOTES PAYABLE - BANKS (Details)
NOTES PAYABLE - BANKS (Details) € in Thousands, $ in Thousands | 6 Months Ended | |||||||||||
Jun. 30, 2016USD ($) | Jul. 31, 2016USD ($) | Jun. 30, 2016EUR (€) | Apr. 30, 2016EUR (€) | Jan. 31, 2016EUR (€) | Dec. 31, 2015USD ($) | Dec. 31, 2015EUR (€) | Apr. 30, 2015EUR (€) | Jun. 30, 2014USD ($) | Jun. 30, 2014EUR (€) | Nov. 30, 2013EUR (€) | Aug. 31, 2013EUR (€) | |
Financial Guarantee [Member] | ||||||||||||
Line of credit, maximum borrowing amount | $ 2,013 | |||||||||||
Line of credit, amount outstanding | $ 11,261 | |||||||||||
Line of credit, unused line fee | 0.75% | |||||||||||
Line of credit, maximum percentage of borrowing base | 80.00% | 80.00% | ||||||||||
Stated interest rate | 1.90% | 1.90% | ||||||||||
Euro Member Countries, Euro | Financial Guarantee [Member] | ||||||||||||
Line of credit, maximum borrowing amount | € | € 2,500 | |||||||||||
Line of credit, amount outstanding | € | € 10,122 | |||||||||||
Line of Credit One [Member] | ||||||||||||
Line of credit, maximum borrowing amount | $ 13,350 | $ 8,500 | $ 6,500 | |||||||||
Line of credit, amount outstanding | 7,190 | $ 5,569 | ||||||||||
Line of credit, unused borrowing capacity | $ 200 | $ 572 | ||||||||||
Line of Credit One [Member] | Euro Member Countries, Euro | ||||||||||||
Line of credit, maximum borrowing amount | € | € 12,000 | |||||||||||
Line of Credit One [Member] | LIBOR [Member] | ||||||||||||
Debt instrument, basis spread | 4.25% | |||||||||||
Effective interest rate | 5.625% | 5.625% | ||||||||||
Line of Credit One [Member] | LIBOR [Member] | Minimum [Member] | ||||||||||||
Debt instrument, basis spread | 1.375% | |||||||||||
Line of Credit One [Member] | Accounts Receivable [Member] | ||||||||||||
Percentage of collateral | 85.00% | 85.00% | ||||||||||
Line of Credit One [Member] | Unbilled Receivables [Member] | ||||||||||||
Percentage of collateral | 75.00% | 75.00% | ||||||||||
Letter of Credit [Member] | ||||||||||||
Line of credit, maximum borrowing amount | $ 1,000 | |||||||||||
Percentage of collateral | 95.00% | 95.00% | ||||||||||
Line of Credit Two [Member] | ||||||||||||
Line of credit, maximum borrowing amount | $ 6,119 | |||||||||||
Line of credit, unused line fee | 0.75% | |||||||||||
Line of Credit Two [Member] | Euro Member Countries, Euro | ||||||||||||
Line of credit, maximum borrowing amount | € | € 5,500 | |||||||||||
Line of Credit Two [Member] | LIBOR [Member] | ||||||||||||
Debt instrument, basis spread | 3.75% | |||||||||||
Line of Credit Three [Member] | ||||||||||||
Line of credit, maximum borrowing amount | $ 11,125 | |||||||||||
Line of credit, maximum percentage of borrowing base | 80.00% | 80.00% | ||||||||||
Line of Credit Three [Member] | Euro Member Countries, Euro | ||||||||||||
Line of credit, maximum borrowing amount | € | € 10,000 | |||||||||||
Line of Credit Three [Member] | LIBOR [Member] | ||||||||||||
Debt instrument, basis spread | 3.50% | |||||||||||
Line of credit, unused line fee | 0.75% | |||||||||||
Line of Credit Four [Member] | ||||||||||||
Line of credit, maximum borrowing amount | $ 556 | |||||||||||
Stated interest rate | 3.50% | 3.50% | ||||||||||
Line of Credit Four [Member] | Euro Member Countries, Euro | ||||||||||||
Line of credit, maximum borrowing amount | € | € 500 | |||||||||||
Line of Credit Five [Member] | ||||||||||||
Line of credit, maximum borrowing amount | $ 1,335 | |||||||||||
Line of credit, amount outstanding | $ 389 | |||||||||||
Stated interest rate | 1.20% | 1.20% | ||||||||||
Line of Credit Five [Member] | First Amendment [Member] | ||||||||||||
Line of credit, maximum borrowing amount | $ 1,678 | |||||||||||
Line of Credit Five [Member] | Second Amendment [Member] | ||||||||||||
Line of credit, maximum borrowing amount | $ 389 | |||||||||||
Line of Credit Five [Member] | Euro Member Countries, Euro | ||||||||||||
Line of credit, maximum borrowing amount | € | 350 | € 1,508 | € 1,200 | |||||||||
Line of credit, amount outstanding | € | € 350 | € 350 |
ACCRUED EXPENSES AND OTHER CU20
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Accrued Expenses And Other Current Liabilities Details | ||
Accrued payroll and related costs | $ 14,803 | $ 12,363 |
Accrued vacation | 6,631 | 4,522 |
Accrual for minimum wage increase | 3,010 | 3,284 |
Cash overdraft | 1,334 | 1,300 |
Labor union contribution | 952 | 920 |
Other | 1,473 | 2,676 |
Total accrued expenses and other current liabilities | $ 28,203 | $ 25,065 |
CONVERTIBLE NOTES PAYABLE TO 21
CONVERTIBLE NOTES PAYABLE TO A RELATED PARTY (Details) - Convertible Notes Payable [Member] - Majority Shareholder [Member] - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 6 Months Ended | |||
Oct. 31, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | May 31, 2014 | |
Debt instrument, conversion price | $ 0.75 | $ 1.50 | |||
Debt instrument, maturity date | Jan. 1, 2018 | ||||
Convertible notes payable | $ 29,981 | $ 29,048 | |||
Accrued interest | 13,869 | $ 10,355 | |||
Interest expense | $ 3,351 | $ 1,529 | |||
LIBOR [Member] | UNITED STATES [Member] | |||||
Debt instrument, basis spread | 6.00% | ||||
Base Rate [Member] | Euro Member Countries, Euro | |||||
Debt instrument, basis spread | 2.00% | ||||
Maximum [Member] | |||||
Debt instrument, face amount | $ 37,000 |
SEGMENT AND GEOGRAPHICAL INFO22
SEGMENT AND GEOGRAPHICAL INFORMATION (Operating Results of Reportable Segments) (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | |
Segment Reporting Information [Line Items] | |||
Revenue | $ 123,932 | $ 84,998 | |
Depreciation and amortization | 433 | 344 | |
Net (loss) profit | (3,311) | $ (448) | (4,254) |
Total assets | 58,777 | $ 42,349 | 37,157 |
Corporate [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | |||
Depreciation and amortization | 3 | ||
Net (loss) profit | 5,313 | 1,266 | |
Total assets | 523 | 473 | |
Aviation Services [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | 122,469 | 84,495 | |
Depreciation and amortization | 410 | 315 | |
Net (loss) profit | (3,124) | 1,126 | |
Total assets | 57,527 | 36,277 | |
Technology [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | 1,463 | 503 | |
Depreciation and amortization | 20 | 29 | |
Net (loss) profit | 1,122 | 1,862 | |
Total assets | $ 727 | $ 407 |
SEGMENT AND GEOGRAPHICAL INFO23
SEGMENT AND GEOGRAPHICAL INFORMATION (Revenue by Country) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 123,932 | $ 84,998 |
NETHERLANDS [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 42,522 | 31,091 |
GERMANY [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 53,326 | 28,368 |
UNITED STATES [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 22,585 | 19,969 |
Other Countries [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 5,499 | $ 5,570 |
SEGMENT AND GEOGRAPHICAL INFO24
SEGMENT AND GEOGRAPHICAL INFORMATION (Property and Equipment by Country) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 |
Segment Reporting Information [Line Items] | |||
Property and equipment, net | $ 2,207 | $ 1,493 | $ 1,231 |
NETHERLANDS [Member] | |||
Segment Reporting Information [Line Items] | |||
Property and equipment, net | 751 | 510 | |
GERMANY [Member] | |||
Segment Reporting Information [Line Items] | |||
Property and equipment, net | 843 | 173 | |
UNITED STATES [Member] | |||
Segment Reporting Information [Line Items] | |||
Property and equipment, net | 337 | 298 | |
Other Countries [Member] | |||
Segment Reporting Information [Line Items] | |||
Property and equipment, net | $ 276 | $ 250 |