Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | 12-May-14 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Entity Registrant Name | 'ON TRACK INNOVATIONS LTD | ' |
Entity Central Index Key | '0001021604 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 33,148,367 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets | ' | ' |
Cash and cash equivalents | $10,060 | $14,962 |
Short-term investments | 4,084 | 2,601 |
Trade receivables (net of allowance for doubtful accounts of $610 and $610 as of March 31, 2014 and December 31, 2013, respectively) | 4,629 | 5,134 |
Other receivables and prepaid expenses | 3,139 | 4,632 |
Inventories | 3,755 | 3,477 |
Assets from discontinued operations - held for sale | ' | 3,919 |
Total current assets | 25,667 | 34,725 |
Long term restricted deposit for employees benefit | 615 | 623 |
Severance pay deposits | 699 | 738 |
Property, plant and equipment, net | 9,554 | 9,837 |
Deferred tax asset | 119 | 173 |
Total Assets | 36,654 | 46,096 |
Current Liabilities | ' | ' |
Short-term bank credit and current maturities of long-term bank loans | 3,791 | 3,842 |
Trade payables | 8,644 | 9,255 |
Other current liabilities | 4,222 | 6,299 |
Liabilities from discontinued operations - held for sale | ' | 2,956 |
Total current liabilities | 16,657 | 22,352 |
Long-Term Liabilities | ' | ' |
Long-term loans, net of current maturities | 3,051 | 3,342 |
Accrued severance pay | 1,693 | 1,706 |
Deferred tax liability | 281 | 292 |
Total long-term liabilities | 5,025 | 5,340 |
Total Liabilities | 21,682 | 27,692 |
Shareholders' Equity | ' | ' |
Ordinary shares of NIS 0.1 par value: Authorized - 50,000,000 shares as of March 31, 2014 and December 31, 2013; issued: 34,327,066 and 34,199,511 shares as of March 31, 2014 and December 31, 2013, respectively; outstanding: 33,148,367 and 33,020,812 shares as of March 31, 2014 and December 31, 2013, respectively | 858 | 854 |
Additional paid-in capital | 212,528 | 212,246 |
Treasury shares at cost - 1,178,699 shares | -2,000 | -2,000 |
Accumulated other comprehensive income (loss) | -332 | 28 |
Accumulated deficit | -195,543 | -192,179 |
Total Shareholder's equity | 15,511 | 18,949 |
Non-controlling interest | -539 | -545 |
Total Equity | 14,972 | 18,404 |
Total Liabilities and Equity | $36,654 | $46,096 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | USD ($) | ILS | USD ($) | ILS |
Condensed Consolidated Balance Sheets [Abstract] | ' | ' | ' | ' |
Allowance for doubtful accounts | $610 | ' | $610 | ' |
Ordinary shares, par value | ' | 0.1 | ' | 0.1 |
Ordinary shares, shares authorized | 50,000,000 | 50,000,000 | 50,000,000 | 50,000,000 |
Ordinary shares, shares issued | 34,327,066 | 34,327,066 | 34,199,511 | 34,199,511 |
Ordinary shares, shares outstanding | 33,148,367 | 33,148,367 | 33,020,812 | 33,020,812 |
Treasury shares held | 1,178,699 | 1,178,699 | 1,178,699 | 1,178,699 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Revenues | ' | ' |
Sales | $3,838 | $2,564 |
Licensing and transaction fees | 1,360 | 1,078 |
Total revenues | 5,198 | 3,642 |
Cost of revenues | ' | ' |
Cost of sales | 2,600 | 1,639 |
Total cost of revenues | 2,600 | 1,639 |
Gross profit | 2,598 | 2,003 |
Operating expenses | ' | ' |
Research and development | 1,160 | 857 |
Selling and marketing | 2,120 | 1,644 |
General and administrative | 1,471 | 1,507 |
Patent litigation and maintenance | 639 | 216 |
Amortization of intangible assets | ' | 25 |
Total operating expenses | 5,390 | 4,249 |
Operating loss from continuing operations | -2,792 | -2,246 |
Financial expenses, net | -104 | -565 |
Loss from continuing operations before taxes on income | -2,896 | -2,811 |
Income tax | -118 | 2 |
Net loss from continuing operations | -3,014 | -2,809 |
Net loss from discontinued operations | -344 | -230 |
Net loss | -3,358 | -3,039 |
Net loss (income) attributable to noncontrolling interest | -6 | 33 |
Net loss attributable to shareholders | ($3,364) | ($3,006) |
Basic and diluted net loss attributable to shareholders per ordinary share | ' | ' |
From continuing operations | ($0.09) | ($0.08) |
From discontinued operations | ($0.01) | ($0.01) |
Total | ($0.10) | ($0.09) |
Weighted average number of ordinary shares used in computing basic and diluted net loss per ordinary share | 33,196,098 | 32,440,428 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Loss (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Condensed Consolidated Statements of Comprehensive Loss [Abstract] | ' | ' |
Net loss | ($3,358) | ($3,039) |
Foreign currency translation adjustments | -24 | -73 |
Foreign currency translation released following sale of a subsidiary | -336 | ' |
Net unrealized gain on available-for-sale securities | ' | 24 |
Reclassification adjustment for gain on available-for-sale securities | ' | 9 |
Total comprehensive loss | -3,718 | -3,079 |
Comprehensive loss (income) attributable to the non-controlling interest | -6 | 28 |
Total comprehensive loss attributable to shareholders | ($3,724) | ($3,051) |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Changes in Equity (USD $) | Total | Share capital [Member] | Additional paid-in capital [Member] | Treasury shares [Member] | Accumulated other comprehensive Income (loss) [Member] | Accumulated deficit [Member] | Non-controlling interest [Member] |
In Thousands, except Share data, unless otherwise specified | |||||||
Balance at Dec. 31, 2012 | $20,199 | $820 | $210,853 | ($2,000) | $36 | ($189,131) | ($459) |
Balance, shares at Dec. 31, 2012 | ' | 32,938,011 | ' | ' | ' | ' | ' |
Changes during the year | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation related to options and shares issued to employees | 84 | ' | 84 | ' | ' | ' | ' |
Exercise of options and warrants | 184 | 9 | 175 | ' | ' | ' | ' |
Exercise of options and warrants, shares | ' | 335,000 | ' | ' | ' | ' | ' |
Foreign currency translation adjustments | -73 | ' | ' | ' | -78 | ' | 5 |
Change in net unrealized gain on avalable-for-sale securities | 33 | ' | ' | ' | 33 | ' | ' |
Net loss | -3,039 | ' | ' | ' | ' | -3,006 | -33 |
Balance at Mar. 31, 2013 | 17,308 | 829 | 211,112 | -2,000 | -9 | -192,137 | -487 |
Balance, shares at Mar. 31, 2013 | ' | 33,273,011 | ' | ' | ' | ' | ' |
Balance at Dec. 31, 2013 | 18,404 | 854 | 212,246 | -2,000 | 28 | -192,179 | -545 |
Balance, shares at Dec. 31, 2013 | ' | 34,199,511 | ' | ' | ' | ' | ' |
Changes during the year | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation related to options and shares issued to employees | 156 | ' | 156 | ' | ' | ' | ' |
Exercise of options and warrants | 130 | 4 | 126 | ' | ' | ' | ' |
Exercise of options and warrants, shares | ' | 127,555 | ' | ' | ' | ' | ' |
Foreign currency translation adjustments | -360 | ' | ' | ' | -360 | ' | ' |
Net loss | -3,358 | ' | ' | ' | ' | -3,364 | 6 |
Balance at Mar. 31, 2014 | $14,972 | $858 | $212,528 | ($2,000) | ($332) | ($195,543) | ($539) |
Balance, shares at Mar. 31, 2014 | ' | 34,327,066 | ' | ' | ' | ' | ' |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Cash flows from continuing operating activities | ' | ' |
Net loss from continuing operations | ($3,014) | ($2,809) |
Adjustments required to reconcile net loss to net cash used in continuing operating activities: | ' | ' |
Stock-based compensation related to options and shares issued to employees | 156 | 57 |
Gain on sale of property and equipment | -5 | ' |
Amortization of intangible assets | ' | 25 |
Depreciation | 331 | 281 |
Changes in operating assets and liabilities: | ' | ' |
Accrued severance pay, net | 25 | -20 |
Accrued interest and linkage differences | 7 | -90 |
Deferred tax, net | 43 | -3 |
Decrease in trade receivables | 192 | 1,366 |
Decrease (increase) in other receivables and prepaid expenses | -163 | 1,820 |
Increase in inventories | -313 | -264 |
Decrease in trade payables | -316 | -2,786 |
Increase (decrease) in other current liabilities | 46 | -298 |
Net cash used in continuing operating activities | -3,011 | -2,721 |
Cash flows from continuing investing activities | ' | ' |
Purchase of property and equipment | -98 | -141 |
Purchase of short term investments | -2,000 | -243 |
Proceeds from restricted deposit for employees benefit | ' | 306 |
Proceeds from maturity or sale of short term investments | 518 | 924 |
Proceeds from sale of property and equipment | 5 | ' |
Net cash (used in) provided by continuing investing activities | -1,575 | 846 |
Cash flows from continuing financing activities | ' | ' |
Decrease in short-term bank credit, net | -142 | -54 |
Proceeds from long-term bank loans | 12 | 26 |
Repayment of long-term bank loans | -208 | -280 |
Proceeds from exercise of options | 225 | 184 |
Net cash used in continuing financing activities | -113 | -124 |
Cash flows from discontinued operations | ' | ' |
Net cash provided by (used in) discontinued operating activities | -874 | 2,214 |
Net cash provided by (used in) discontinued investing activities | 695 | -24 |
Net cash used in discontinued financing activities | -154 | -474 |
Total net cash provided by discontinued operations | -333 | 1,716 |
Effect of exchange rate changes on cash and cash equivalents | 130 | -91 |
Decrease in cash and cash equivalents | -4,902 | -374 |
Cash and cash equivalents at the beginning of the period | 14,962 | 9,304 |
Cash and cash equivalents at the end of the period | 10,060 | 8,930 |
Cash paid during the period for: | ' | ' |
Interest paid | 76 | 83 |
Income taxes paid | ' | $170 |
Organization_and_Basis_of_Pres
Organization and Basis of Presentation | 3 Months Ended | ||
Mar. 31, 2014 | |||
Organization and Basis of Presentation [Abstract] | ' | ||
Organization and Basis of Presentation | ' | ||
Note 1 - Organization and Basis of Presentation | |||
A. | Description of business | ||
On Track Innovations Ltd. (the "Company") was founded in 1990, in Israel. The Company and its subsidiaries (together "the Group") are principally engaged in the field of design and development of cashless payment solutions. The Company's shares are listed for trading on NASDAQ. | |||
B. | Interim Unaudited Financial Information | ||
The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements and therefore should be read in conjunction with the Company's Annual Report on Form 10-K for the year ended December 31, 2013. | |||
In the opinion of management, all adjustments considered necessary for a fair presentation, consisting of normal recurring adjustments, have been included. Operating results for the three month period ended March 31, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. | |||
Use of Estimates: | |||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the assets, liabilities, revenue, costs, expenses and accumulated other comprehensive income/(loss) that are reported in the Consolidated Financial Statements and accompanying disclosures. These estimates are based on management's best knowledge of current events, historical experience, actions that the Company may undertake in the future and on various other assumptions that are believed to be reasonable under the circumstances. As a result, actual results may be different from these estimates. | |||
C. | Divestiture of operations: | ||
In December 2013, the Company completed the sale of certain assets, subsidiaries and intellectual property ("IP") relating to its Smart ID division. Accordingly the results and the cash flows of this operation for all reporting periods are presented in the statements of operations and in the statements of cash flows, respectively, as discontinued operations separately from continuing operations. | |||
In February 2014, the Company signed a final agreement to sell its wholly owned German subsidiary, Intercard System Electronics GmbH ( "Intercard"), for a total purchase price of EURO 700 (approx. $960) and an additional immaterial contingent consideration based on future sales (the "German Subsidiary Divesture"). Accordingly, the results and the cash flows of this operation for all reporting periods are presented in the statements of operations and in the statements of cash flows, respectively, as discontinued operations separately from continuing operations. The Company recorded a loss from this divesture, including transaction costs, in the amount of $343 and profit in the amount of $336 due to transfer of Intercard's accumulated foreign currency translation adjustments from other comprehensive loss to the statement of operations (see also note 7). | |||
All comparative figures have been reclassified to conform with current year presentation. | |||
Significant_Accounting_Policie
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2014 | |
Significant Accounting Policies [Abstract] | ' |
Significant Accounting Policies | ' |
Note 2 - Significant Accounting Policies | |
Recent accounting pronouncements | |
In July 2013, the Financial Accounting Standards Board ("FASB") issued ASU 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. ASU 2013-11 requires an unrecognized tax benefit, or a portion of an unrecognized tax benefit, to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. ASU 2013-11 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. The new standard is to be applied prospectively but retrospective application is permitted. The Company will implement the provisions of ASU 2013-11 as of January 1, 2015, and the implementation is not expected to have a material effect on the Company's consolidated financial statements. | |
Other_Receivables_and_Prepaid_
Other Receivables and Prepaid Expenses | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Other Receivables and Prepaid Expenses [Abstract] | ' | ||||||||
Other Receivables And Prepaid Expenses | ' | ||||||||
Note 3 - Other Receivables and Prepaid Expenses | |||||||||
31-Mar | 31-Dec | ||||||||
2014 | 2013 | ||||||||
Government institutions | $ | 606 | $ | 309 | |||||
Prepaid expenses | 940 | 818 | |||||||
Receivables under contractual obligations to be transferred to others * | 721 | 1,288 | |||||||
Receivables related to the Smart ID Division Divestiture | - | 1,572 | |||||||
Other receivables | 872 | 645 | |||||||
$ | 3,139 | $ | 4,632 | ||||||
* | The Company's subsidiary in Poland is required to collect certain fees that are to be transferred to local authorities. |
Inventories
Inventories | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Inventories [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
Note 4 - Inventories | |||||||||
Inventories consist of the following: | |||||||||
31-Mar | 31-Dec | ||||||||
2014 | 2013 | ||||||||
Raw materials | $ | 1,035 | $ | 775 | |||||
Work in progress | 694 | 665 | |||||||
Finished products | 2,026 | 2,037 | |||||||
$ | 3,755 | $ | 3,477 |
Other_Current_Liabilities
Other Current Liabilities | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Other Current Liabilities [Abstract] | ' | ||||||||
Other Current Liabilities | ' | ||||||||
Note 5 - Other Current Liabilities | |||||||||
31-Mar | 31-Dec | ||||||||
2014 | 2013 | ||||||||
Employees and related expenses | $ | 1,616 | $ | 2,116 | |||||
Accrued expenses | 1,334 | 1,541 | |||||||
Customer advances | 809 | 877 | |||||||
Government institutions related to the Smart ID Division Divesture | - | 1,572 | |||||||
Other current liabilities | 463 | 193 | |||||||
$ | 4,222 | $ | 6,299 | ||||||
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended | ||
Mar. 31, 2014 | |||
Commitments and Contingencies [Abstract] | ' | ||
Commitments And Contingencies | ' | ||
Note 6 - Commitments and Contingencies | |||
A. | Legal claims | ||
On January 27, 2013, a former employee of the Company (in this paragraph, the "Plaintiff"), filed a lawsuit against the Company in the District Labor Court in Tel Aviv (the "Court") in the amount of NIS 1,400 (approximately $375). The plaintiff alleges that the Company breached its employment agreement with him, and that the Company owes him commission payments for certain sales. On March 2, 2014, the parties filed a settlement agreement with the Court according to which the parties released each other from their respective claims and counter claims, which was approved by the Court on March 4, 2014. | |||
On October 3, 2013 the Company received from the Commercial Court of Paris, France (in this paragraph, the "Court") notification that a French company named SMJ PARK'IN SARL (in this paragraph the "Plaintiff") submitted on June 2013 a monetary claim against the Company and its French subsidiary, Parx France (in this paragraph the "Defendants"), alleging, among other things, that the Defendants entered in mid-2008 into an agreement with the Plaintiff granting it the exclusive marketing rights to distribute and operate the Defendants' PIAF Parking System in Paris and ILE the France, and that the Defendants failed to fulfill their undertakings under such alleged agreement, by marketing their products by themselves or others causing the Plaintiff losses that it requires compensation for in its lawsuit. The total claim amount made by Plaintiff under this action is approximately €1,500 (approximately $2,000). The Company rejects all of the Plaintiff's allegations and claims, including the alleged agreement and the then exclusive right of the Plaintiff to distribute the Company's products, which right was only in negotiation during the relevant time. Following a preliminary hearing held by the Court on December 2013, the Defendants are expected to submit their detailed defense to the Court by end of May 2014. Based on the advice of counsel, management believes that the Company had no obligation to the Plaintiff. Accordingly, no provision has been made in the Company's financial statements for the claim. | |||
B. | Guarantees | ||
As of March 31, 2014, the Company granted guarantees to third parties including performance guarantees and guarantees to secure customer advances in the sum of $1,104. | |||
The expiration dates of the guarantees range from May 2014 to May 2016. |
Discontinued_Operations
Discontinued Operations | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Discontinued Operations [Abstract] | ' | ||||||||
Discontinued Operations | ' | ||||||||
Note 7 - Discontinued operations | |||||||||
As described in Note 1C, the Company divested the SmartID division and its interest in Intercard and presented these activities as discontinued operations. The loss from the German subsidiary Divesture, including transaction costs, and the profit due to transfer of its accumulated foreign currency translation adjustments from other comprehensive loss to the statement of operations totaled $7, which is presented below as 'other loss, net'. | |||||||||
Set forth below are the results of the discontinued operations: | |||||||||
Three months ended March 31 | |||||||||
2014 | 2013 | ||||||||
Revenues | $ | 1,131 | $ | 4,985 | |||||
Expenses | (1,468 | ) | (5,215 | ) | |||||
Other loss, net | (7 | ) | - | ||||||
Net loss from discontinued operations | $ | (344 | ) | $ | (230 | ) | |||
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 3 Months Ended | ||
Mar. 31, 2014 | |||
Fair Value of Financial Instruments [Abstract] | ' | ||
Fair Value of Financial Instruments | ' | ||
Note 8 - Fair Value of Financial Instruments | |||
The Company's financial instruments consist mainly of cash and cash equivalents, short-term interest bearing investments, accounts receivable, restricted deposits for employee benefits, accounts payable and short-term and long-term loans. | |||
Fair value for the measurement of financial assets and liabilities is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. The Company utilizes a valuation hierarchy for disclosure of the inputs for fair value measurement. This hierarchy prioritizes the inputs into three broad levels as follows: | |||
· | Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date. | ||
· | Level 2 Inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. | ||
· | Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at measurement date. | ||
By distinguishing between inputs that are observable in the market place, and therefore more objective, and those that are unobservable and therefore more subjective, the hierarchy is designed to indicate the relative reliability of the fair value measurements. A financial asset or liability's classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. | |||
The Company, in estimating fair value for financial instruments, used the following methods and assumptions: | |||
The carrying amounts of cash and cash equivalents, short term deposits in banks, trade receivables, short-term bank credit and trade payables are equivalent to, or approximate their fair value due to the short-term maturity of these instruments. | |||
The fair value of the investment securities is based on quoted market prices and thus is based on level 1 inputs. | |||
The fair value of the liability in respect of the contingent consideration included in business combinations (see note 1C(2) in the Company's consolidated financial statements as of December 31, 2013, included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2013) is based on discounted future expected sales and thus is based on level 3 inputs. The liability was determined to be insignificant. | |||
The carrying amounts of variable interest rate long-term loans are equivalent or approximate to their fair value as they bear interest at approximate market rates. At March 31, 2014, fair value of bank loans with fixed interest rates did not differ materially from the carrying amount. | |||
As of March 31, 2014, the Company held approximately $4,084 of short-term bank deposits (as of December 31, 2013, $ 2,601). Short-term deposits in the amount of $1,868 have been pledged as security in respect of guarantees granted to third parties, loans and credit lines received from a bank (as of December 31, 2013 - $ 2,381) and cannot be pledged to others or withdrawn without the consent of the bank. | |||
As of March 31, 2014 and December 31, 2013, no investment securities were held by the Company. |
Operating_Segments
Operating Segments | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
Operating Segments [Abstract] | ' | ||||||||||||||||||||
Operating Segments | ' | ||||||||||||||||||||
Note 9 - Operating segments | |||||||||||||||||||||
For the purposes of allocating resources and assessing performance in order to improve profitability, the Company's chief operating decision maker ("CODM") examines three segments which are the Company's strategic business units: Retail and Mass Transit, Petroleum and Parking. In addition to its three reportable segments, certain products for the medical industry and other secure smart card solutions are classified under "Other". | |||||||||||||||||||||
The strategic business unit's allocation of resources and evaluation of performance are managed separately. The CODM does not examine assets or liabilities for those segments and therefore they are not presented. | |||||||||||||||||||||
Information regarding the results of each reportable segment is included below based on the internal management reports that are reviewed by the CODM. | |||||||||||||||||||||
Three months ended March 31, 2014 | |||||||||||||||||||||
Petroleum | Retail and | Parking | Other | Consolidated | |||||||||||||||||
Mass Transit | |||||||||||||||||||||
Revenues | $ | 659 | $ | 3,387 | $ | 681 | $ | 471 | $ | 5,198 | |||||||||||
Reportable segment gross profit * | 435 | 1,653 | 436 | 263 | 2,787 | ||||||||||||||||
Reconciliation of reportable segment | |||||||||||||||||||||
gross profit to profit for the period | |||||||||||||||||||||
Depreciation | (183 | ) | |||||||||||||||||||
Stock based compensation | (6 | ) | |||||||||||||||||||
Gross profit for the period | $ | 2,598 | |||||||||||||||||||
Three months ended March 31, 2013 | |||||||||||||||||||||
Petroleum | Retail and | Parking | Other | Consolidated | |||||||||||||||||
Mass Transit | |||||||||||||||||||||
Revenues | $ | 1,178 | $ | 1,727 | $ | 505 | $ | 232 | $ | 3,642 | |||||||||||
Reportable segment gross profit * | 715 | 1,015 | 293 | 128 | 2,151 | ||||||||||||||||
Reconciliation of reportable segment | |||||||||||||||||||||
gross profit to profit for the period | |||||||||||||||||||||
Depreciation | (144 | ) | |||||||||||||||||||
Stock based compensation | (4 | ) | |||||||||||||||||||
Gross profit for the period | $ | 2,003 | |||||||||||||||||||
* Gross profit as reviewed by the CODM, represents gross profit, adjusted to exclude depreciation and stock based compensation. |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
Significant Accounting Policies [Abstract] | ' |
Recent Accounting Pronouncements | ' |
Recent accounting pronouncements | |
In July 2013, the Financial Accounting Standards Board ("FASB") issued ASU 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. ASU 2013-11 requires an unrecognized tax benefit, or a portion of an unrecognized tax benefit, to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. ASU 2013-11 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. The new standard is to be applied prospectively but retrospective application is permitted. The Company will implement the provisions of ASU 2013-11 as of January 1, 2015, and the implementation is not expected to have a material effect on the Company's consolidated financial statements. | |
Other_Receivables_and_Prepaid_1
Other Receivables and Prepaid Expenses (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Other Receivables and Prepaid Expenses [Abstract] | ' | ||||||||
Schedule of Other Receivables and Prepaid Expenses | ' | ||||||||
31-Mar | 31-Dec | ||||||||
2014 | 2013 | ||||||||
Government institutions | $ | 606 | $ | 309 | |||||
Prepaid expenses | 940 | 818 | |||||||
Receivables under contractual obligations to be transferred to others * | 721 | 1,288 | |||||||
Receivables related to the Smart ID Division Divestiture | - | 1,572 | |||||||
Other receivables | 872 | 645 | |||||||
$ | 3,139 | $ | 4,632 | ||||||
* | The Company's subsidiary in Poland is required to collect certain fees that are to be transferred to local authorities. |
Inventories_Tables
Inventories (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Inventories [Abstract] | ' | ||||||||
Schedule of Inventory | ' | ||||||||
Inventories consist of the following: | |||||||||
31-Mar | 31-Dec | ||||||||
2014 | 2013 | ||||||||
Raw materials | $ | 1,035 | $ | 775 | |||||
Work in progress | 694 | 665 | |||||||
Finished products | 2,026 | 2,037 | |||||||
$ | 3,755 | $ | 3,477 |
Other_Current_Liabilities_Tabl
Other Current Liabilities (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Other Current Liabilities [Abstract] | ' | ||||||||
Summary of Other Current Liabilities | ' | ||||||||
31-Mar | 31-Dec | ||||||||
2014 | 2013 | ||||||||
Employees and related expenses | $ | 1,616 | $ | 2,116 | |||||
Accrued expenses | 1,334 | 1,541 | |||||||
Customer advances | 809 | 877 | |||||||
Government institutions related to the Smart ID Division Divesture | - | 1,572 | |||||||
Other current liabilities | 463 | 193 | |||||||
$ | 4,222 | $ | 6,299 | ||||||
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Discontinued Operations [Abstract] | ' | ||||||||
Schedule of Results of Discontinued Operations | ' | ||||||||
Set forth below are the results of the discontinued operations: | |||||||||
Three months ended March 31 | |||||||||
2014 | 2013 | ||||||||
Revenues | $ | 1,131 | $ | 4,985 | |||||
Expenses | (1,468 | ) | (5,215 | ) | |||||
Other loss, net | (7 | ) | - | ||||||
Net loss from discontinued operations | $ | (344 | ) | $ | (230 | ) |
Operating_Segments_Tables
Operating Segments (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
Operating Segments [Abstract] | ' | ||||||||||||||||||||
Reconciliation of Segment Information to Consolidated Financial Information | ' | ||||||||||||||||||||
Three months ended March 31, 2014 | |||||||||||||||||||||
Petroleum | Retail and | Parking | Other | Consolidated | |||||||||||||||||
Mass Transit | |||||||||||||||||||||
Revenues | $ | 659 | $ | 3,387 | $ | 681 | $ | 471 | $ | 5,198 | |||||||||||
Reportable segment gross profit * | 435 | 1,653 | 436 | 263 | 2,787 | ||||||||||||||||
Reconciliation of reportable segment | |||||||||||||||||||||
gross profit to profit for the period | |||||||||||||||||||||
Depreciation | (183 | ) | |||||||||||||||||||
Stock based compensation | (6 | ) | |||||||||||||||||||
Gross profit for the period | $ | 2,598 | |||||||||||||||||||
Three months ended March 31, 2013 | |||||||||||||||||||||
Petroleum | Retail and | Parking | Other | Consolidated | |||||||||||||||||
Mass Transit | |||||||||||||||||||||
Revenues | $ | 1,178 | $ | 1,727 | $ | 505 | $ | 232 | $ | 3,642 | |||||||||||
Reportable segment gross profit * | 715 | 1,015 | 293 | 128 | 2,151 | ||||||||||||||||
Reconciliation of reportable segment | |||||||||||||||||||||
gross profit to profit for the period | |||||||||||||||||||||
Depreciation | (144 | ) | |||||||||||||||||||
Stock based compensation | (4 | ) | |||||||||||||||||||
Gross profit for the period | $ | 2,003 | |||||||||||||||||||
* Gross profit as reviewed by the CODM, represents gross profit, adjusted to exclude depreciation and stock based compensation. |
Organization_and_Basis_of_Pres1
Organization and Basis of Presentation (Divestiture of Operations) (Details) | 1 Months Ended | 3 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2014 | Mar. 31, 2014 | Mar. 31, 2013 |
USD ($) | EUR (€) | USD ($) | USD ($) | |
Organization and Basis of Presentation [Abstract] | ' | ' | ' | ' |
Foreign currency translation released following sale of a subsidiary | ' | ' | ($336) | ' |
Loss from divestiture | -343 | ' | ' | ' |
Proceeds from sale of subsidiary | $960 | € 700 | ' | ' |
Other_Receivables_and_Prepaid_2
Other Receivables and Prepaid Expenses (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Other Receivables and Prepaid Expenses [Abstract] | ' | ' |
Government institutions | $606 | $309 |
Prepaid expenses | 940 | 818 |
Receivables under contractual obligations to be transferred to others | 721 | 1,288 |
Receivables related to the Smart ID Division Divestiture | ' | 1,572 |
Other receivables | 872 | 645 |
Total other receivables and prepaid expenses | $3,139 | $4,632 |
Inventories_Details
Inventories (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventories [Abstract] | ' | ' |
Raw materials | $1,035 | $775 |
Work in progress | 694 | 665 |
Finished products | 2,026 | 2,037 |
Inventories | $3,755 | $3,477 |
Other_Current_Liabilities_Deta
Other Current Liabilities (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Other Current Liabilities [Abstract] | ' | ' |
Employees and related expenses | $1,616 | $2,116 |
Accrued expenses | 1,334 | 1,541 |
Customer advances | 809 | 877 |
Government institutions related to the Smart ID Division Divesture | ' | 1,572 |
Other current liabilities | 463 | 193 |
Total other current liabilities | $4,222 | $6,299 |
Commitments_and_Contingencies_
Commitments and Contingencies (Contingencies) (Details) | 1 Months Ended | |||
Jan. 31, 2013 | Jan. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | |
Former Employee [Member] | Former Employee [Member] | French Company [Member] | French Company [Member] | |
USD ($) | ILS | USD ($) | EUR (€) | |
Loss Contingencies [Line Items] | ' | ' | ' | ' |
Lawsuit, damages sought | $375 | 1,400 | $2,000 | € 1,500 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Guarantees) (Details) (USD $) | Mar. 31, 2014 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies [Abstract] | ' |
Granted guarantee to third party | $1,104 |
Discontinued_Operations_Schedu
Discontinued Operations (Schedule of Results) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Discontinued Operations [Abstract] | ' | ' |
Revenues | $1,131 | $4,985 |
Expenses | -1,468 | -5,215 |
Other loss, net | -7 | ' |
Net loss from discontinued operations | ($344) | ($230) |
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value of Financial Instruments [Abstract] | ' | ' |
Short-term investments | $4,084 | $2,601 |
Short term deposit pledged as security | $1,868 | $2,381 |
Operating_Segments_Details
Operating Segments (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Segment Reporting Information [Line Items] | ' | ' |
Revenues | $5,198 | $3,642 |
Reportable segment gross profit | 2,787 | 2,151 |
Depreciation | -183 | -144 |
Stock based compensation | -6 | -4 |
Gross profit | 2,598 | 2,003 |
Petroleum [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Revenues | 659 | 1,178 |
Reportable segment gross profit | 435 | 715 |
Retail and Mass Transit [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Revenues | 3,387 | 1,727 |
Reportable segment gross profit | 1,653 | 1,015 |
Parking [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Revenues | 681 | 505 |
Reportable segment gross profit | 436 | 293 |
Other [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Revenues | 471 | 232 |
Reportable segment gross profit | $263 | $128 |