Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Aug. 12, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Jun-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
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 | ' | 33,220,700 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets | ' | ' |
Cash and cash equivalents | $6,114 | $14,962 |
Short-term investments | 4,448 | 2,601 |
Trade receivables (net of allowance for doubtful accounts of $610 as of June 30, 2014 and December 31, 2013) | 6,526 | 5,134 |
Other receivables and prepaid expenses | 3,377 | 4,632 |
Inventories | 3,572 | 3,477 |
Assets from discontinued operations - held for sale | ' | 3,919 |
Total current assets | 24,037 | 34,725 |
Long term restricted deposit for employees benefit | 626 | 623 |
Severance pay deposits | 728 | 738 |
Property, plant and equipment, net | 9,318 | 9,837 |
Deferred tax asset | 51 | 173 |
Total Assets | 34,760 | 46,096 |
Current Liabilities | ' | ' |
Short-term bank credit and current maturities of long-term bank loans | 4,142 | 3,842 |
Trade payables | 9,705 | 9,255 |
Other current liabilities | 3,011 | 6,299 |
Liabilities from discontinued operations - held for sale | ' | 2,956 |
Total current liabilities | 16,858 | 22,352 |
Long-Term Liabilities | ' | ' |
Long-term loans, net of current maturities | 2,816 | 3,342 |
Accrued severance pay | 1,691 | 1,706 |
Deferred tax liability | 304 | 292 |
Total long-term liabilities | 4,811 | 5,340 |
Total Liabilities | 21,669 | 27,692 |
Shareholders' Equity | ' | ' |
Ordinary shares of NIS 0.1 par value: Authorized - 50,000,000 shares as of June 30, 2014 and December 31, 2013; issued: 34,386,066 and 34,199,511shares as of June 30, 2014 and December 31, 2013, respectively; outstanding: 33,207,367 and 33,020,812 shares as of June 30, 2014 and December 31, 2013, respectively | 860 | 854 |
Additional paid-in capital | 212,892 | 212,246 |
Treasury shares at cost - 1,178,699 shares | -2,000 | -2,000 |
Accumulated other comprehensive income (loss) | -345 | 28 |
Accumulated deficit | -197,762 | -192,179 |
Total Shareholder's equity | 13,645 | 18,949 |
Non-controlling interest | -554 | -545 |
Total Equity | 13,091 | 18,404 |
Total Liabilities and Equity | $34,760 | $46,096 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Condensed Consolidated Balance Sheets [Abstract] | ' | ' |
Allowance for doubtful accounts | $610 | $610 |
Ordinary shares, par value | $0.10 | $0.10 |
Ordinary shares, shares authorized | 50,000,000 | 50,000,000 |
Ordinary shares, shares issued | 34,386,066 | 34,199,511 |
Ordinary shares, shares outstanding | 33,207,367 | 33,020,812 |
Treasury shares held | 1,178,699 | 1,178,699 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | 6 Months Ended | ||||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | ||
Revenues | ' | ' | ' | ' | ||
Sales | $5,852 | $3,385 | $9,690 | $5,949 | ||
Licensing and transaction fees | 1,302 | 1,149 | 2,662 | 2,227 | ||
Total revenues | 7,154 | 4,534 | 12,352 | 8,176 | ||
Cost of revenues | ' | ' | ' | ' | ||
Cost of sales | 3,847 | 1,914 | 6,447 | 3,553 | ||
Gross profit | 3,307 | 2,620 | 5,905 | 4,623 | ||
Operating expenses | ' | ' | ' | ' | ||
Research and development | 1,221 | 1,131 | 2,381 | 1,988 | ||
Selling and marketing | 2,072 | 1,587 | 4,192 | 3,231 | ||
General and administrative | 1,638 | 2,043 | 3,109 | 3,550 | ||
Patent litigation and maintenance | 380 | 202 | 1,019 | 418 | ||
Amortization of intangible assets | ' | 28 | ' | 53 | ||
Total operating expenses | 5,311 | 4,991 | 10,701 | 9,240 | ||
Operating loss from continuing operations | -2,004 | -2,371 | -4,796 | -4,617 | ||
Financial expenses, net | -249 | -256 | -353 | -821 | ||
Loss from continuing operations before taxes on income | -2,253 | -2,627 | -5,149 | -5,438 | ||
Income tax | -55 | 2 | -173 | 4 | ||
Net loss from continuing operations | -2,308 | -2,625 | -5,322 | -5,434 | ||
Net Income (loss) from discontinued operations | 74 | 321 | -270 | 91 | ||
Net loss | -2,234 | -2,304 | -5,592 | -5,343 | ||
Net loss attributable to noncontrolling interest | 15 | 31 | 9 | 64 | ||
Net loss attributable to shareholders | ($2,219) | ($2,273) | ($5,583) | ($5,279) | ||
Basic and diluted net loss attributable to shareholders per ordinary share | ' | ' | ' | ' | ||
From continuing operations | ($0.07) | ($0.08) | ($0.16) | ($0.16) | ||
From discontinued operations | ' | [1] | $0.01 | ($0.01) | ' | [1] |
Total | ($0.07) | ($0.07) | ($0.17) | ($0.16) | ||
Weighted average number of ordinary shares used in computing basic and diluted net loss per ordinary share | 33,228,978 | 32,495,334 | 33,212,538 | 32,467,881 | ||
[1] | Less than 0.01 per ordinary share |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Loss (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Condensed Consolidated Statements of Comprehensive Loss [Abstract] | ' | ' | ' | ' |
Net loss | ($2,234) | ($2,304) | ($5,592) | ($5,343) |
Foreign currency translation adjustments | -13 | -101 | -37 | -174 |
Foreign currency translation released following sale of a subsidiary | ' | ' | -336 | ' |
Net unrealized gain on available-for-sale securities | ' | 10 | ' | 34 |
Reclassification adjustment for gain on available-for-sale securities | ' | -78 | ' | -69 |
Total comprehensive loss | -2,247 | -2,473 | -5,965 | -5,552 |
Comprehensive loss (income) attributable to the non-controlling interest | 15 | 35 | 9 | 63 |
Total comprehensive loss attributable to shareholders | ($2,232) | ($2,438) | ($5,956) | ($5,489) |
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 | $20,119 | $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 | 154 | ' | 154 | ' | ' | ' | ' |
Exercise of options and warrants | 239 | 13 | 126 | ' | ' | ' | ' |
Exercise of options and warrants, shares | ' | 496,500 | ' | ' | ' | ' | ' |
Foreign currency translation adjustments | -173 | ' | ' | ' | -174 | ' | ' |
Change in net unrealized gain on avalable-for-sale securities | -35 | ' | ' | ' | -35 | ' | ' |
Net loss | -5,343 | ' | ' | ' | ' | -5,279 | -64 |
Balance at Jun. 30, 2013 | 14,961 | 833 | 211,233 | -2,000 | -173 | -194,410 | -522 |
Balance, shares at Jun. 30, 2013 | ' | 33,434,511 | ' | ' | ' | ' | ' |
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 | 436 | ' | 436 | ' | ' | ' | ' |
Exercise of options and warrants | 216 | 6 | 210 | ' | ' | ' | ' |
Exercise of options and warrants, shares | 186,555 | 186,555 | ' | ' | ' | ' | ' |
Foreign currency translation adjustments | -373 | ' | ' | ' | -373 | ' | ' |
Net loss | -5,592 | ' | ' | ' | ' | -5,583 | -9 |
Balance at Jun. 30, 2014 | $13,091 | $860 | $212,892 | ($2,000) | ($345) | ($197,762) | ($554) |
Balance, shares at Jun. 30, 2014 | ' | 34,386,066 | ' | ' | ' | ' | ' |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Cash flows from continuing operating activities | ' | ' |
Net loss from continuing operations | ($5,322,000) | ($5,434,000) |
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 | 436,000 | 113,000 |
Gain on sale of property and equipment | -5,000 | -11,000 |
Amortization of intangible assets | ' | 53,000 |
Depreciation | 648,000 | 556,000 |
Changes in operating assets and liabilities: | ' | ' |
Accrued severance pay, net | -6,000 | -157,000 |
Accrued interest and linkage differences | -8,000 | 69,000 |
Deferred tax, net | 134,000 | -6,000 |
Decrease (increase) in trade receivables | -1,676,000 | 365,000 |
Decrease (increase) in other receivables and prepaid expenses | -138,000 | 1,390,000 |
Increase in inventories | -104,000 | -792,000 |
Increase (decrease) in trade payables | 816,000 | -1,413,000 |
Decrease in other current liabilities | -1,018,000 | -760,000 |
Net cash used in continuing operating activities | -6,243,000 | -6,027,000 |
Cash flows from continuing investing activities | ' | ' |
Purchase of property and equipment | -202,000 | -1,595,000 |
Purchase of short term investments | -2,402,000 | -295,000 |
Proceeds from restricted deposit for employees benefit | ' | 306,000 |
Proceeds from maturity or sale of short term investments | 560,000 | 5,541,000 |
Proceeds from sale of property and equipment | 5,000 | 11,000 |
Net cash (used in) provided by continuing investing activities | -2,039,000 | 3,968,000 |
Cash flows from continuing financing activities | ' | ' |
Increase (decrease) in short-term bank credit, net | 215,000 | -2,325,000 |
Proceeds from long-term bank loans | 12,000 | 1,398,000 |
Repayment of long-term bank loans | -436,000 | -601,000 |
Proceeds from exercise of options | 311,000 | 239,000 |
Net cash provided by (used) in continuing financing activities | 102,000 | -1,289,000 |
Cash flows from discontinued operations | ' | ' |
Net cash provided by (used in) discontinued operating activities | -1,264,000 | 1,132,000 |
Net cash provided by (used in) discontinued investing activities | 695,000 | -61,000 |
Net cash used in discontinued financing activities | -154,000 | -722,000 |
Total net cash provided by (used in) discontinued operations | -723,000 | 349,000 |
Effect of exchange rate changes on cash and cash equivalents | 55,000 | -112,000 |
Decrease in cash and cash equivalents | -8,848,000 | -3,111,000 |
Cash and cash equivalents at the beginning of the period | 14,962,000 | 9,304,000 |
Cash and cash equivalents at the end of the period | 6,114,000 | 6,193,000 |
Cash paid during the period for: | ' | ' |
Interest paid | 147,000 | 110,000 |
Income taxes paid | $33,000 | $170,000 |
Organization_and_Basis_of_Pres
Organization and Basis of Presentation | 6 Months Ended | ||
Jun. 30, 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 (Symbol: OTIV). | |||
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. GAAP 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 six month period ended June 30, 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 Interim 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. During the six month period ended June 30, 2014 the Company recorded profit from contingent consideration in the amount of $230 according to the earn out mechanism. This profit is presented as 'other income, net' within loss from discontinued operations for the six months ended June 30, 2014 (see also note 7). | |||
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. In addition, the Company recorded a 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. Those amounts are presented as 'other loss, net' from discontinued operations for the six months ended June 30, 2014 (see also note 7). | |||
All comparative figures have been reclassified to conform with current year presentation. | |||
D. Patent litigation and maintenance expenses | |||
Patent litigation and maintenance expenses, which consist of salaries and consultants' fees, are expensed as incurred. The Company presents such expenses as a separate item within its operating expenses because it believes that such presentation improves the understandability of the statement of operations. |
Significant_Accounting_Policie
Significant Accounting Policies | 6 Months Ended | ||
Jun. 30, 2014 | |||
Significant Accounting Policies [Abstract] | ' | ||
Significant Accounting Policies | ' | ||
Note 2 - Recent Accounting Pronouncements | |||
A. | In April 2014, the Financial Accounting Standards Board ("FASB") issued ASU 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which changes the requirements for reporting discontinued operations. Under the ASU, discontinued operations is defined as either a: | ||
· | Component of an entity, or group of components, that | ||
o | Has been disposed of meets the criteria to be classified as held-for-sale, or has been abandoned/spun-off; and | ||
o | Represents a strategic shift that has (or will have) a major effect on an entity's operations and financial results, or a | ||
· | Business or nonprofit activity that, on acquisition, meets the criteria to be classified as held-for-sale. | ||
Under this ASU, continuing involvement in the disposed component is no longer relevant for evaluating discontinued operations presentation. However, the ASU requires specific disclosures about entities' continuing involvement with discontinued operations. | |||
The new ASU is effective for the Company prospectively for both: | |||
· | All disposals (or classifications as held for sale) of components that occur within annual periods beginning on or after December 15, 2014, and interim periods within those years, and | ||
· | All business that, on acquisition, are classified as held for sale that occur within annual periods beginning on or after December 15, 2014, and interim periods within those years. | ||
The extent of this standard's effect depends on the management's plan to divest operations in the future, if at all, and the Company is currently evaluating its potential effect on the consolidated financial statements and related disclosures. | |||
B. | On May 28, 2014, the Financial Accounting Standards Board ("FASB") issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which requires an entity to recognize the amount of revenues to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for the Company on January 1, 2017. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is currently evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. |
Other_Receivables_and_Prepaid_
Other Receivables and Prepaid Expenses | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Other Receivables and Prepaid Expenses [Abstract] | ' | ||||||||
Other Receivables And Prepaid Expenses | ' | ||||||||
Note 3 - Other Receivables and Prepaid Expenses | |||||||||
30-Jun | 31-Dec | ||||||||
2014 | 2013 | ||||||||
Government institutions | $ | 450 | $ | 309 | |||||
Prepaid expenses | 1,058 | 818 | |||||||
Receivables under contractual obligations to be transferred to others * | 600 | 1,288 | |||||||
Receivables related to the Smart ID Division Divestiture | - | 1,572 | |||||||
Other receivables | 1,269 | 645 | |||||||
$ | 3,377 | $ | 4,632 | ||||||
* | The Company's subsidiary in Poland is required to collect certain fees that are to be transferred to local authorities. |
Inventories
Inventories | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Inventories [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
Note 4 - Inventories | |||||||||
Inventories consist of the following: | |||||||||
30-Jun | 31-Dec | ||||||||
2014 | 2013 | ||||||||
Raw materials | $ | 1,095 | $ | 775 | |||||
Work in progress | 506 | 665 | |||||||
Finished products | 1,971 | 2,037 | |||||||
$ | 3,572 | $ | 3,477 |
Other_Current_Liabilities
Other Current Liabilities | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Other Current Liabilities [Abstract] | ' | ||||||||
Other Current Liabilities | ' | ||||||||
Note 5 - Other Current Liabilities | |||||||||
30-Jun | 31-Dec | ||||||||
2014 | 2013 | ||||||||
Employees and related expenses | $ | 1,526 | $ | 2,116 | |||||
Accrued expenses | 792 | 1,541 | |||||||
Customer advances | 241 | 877 | |||||||
Government institutions related to the Smart ID Division Divesture | - | 1,572 | |||||||
Other current liabilities | 452 | 193 | |||||||
$ | 3,011 | $ | 6,299 |
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended | ||
Jun. 30, 2014 | |||
Commitments and Contingencies [Abstract] | ' | ||
Commitments And Contingencies | ' | ||
Note 6 - Commitments and Contingencies | |||
A. | Legal claims | ||
1 | 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 of Tel Aviv (in this paragraph 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. | ||
2 | On October 3, 2013, a financial claim was filed against the Company and its then French subsidiary, Parx France (in this paragraph, together the "Defendants"), in the Commercial Court of Paris, France (in this paragraph, the "Court"). The sum of the claim is €1.5 million (approximately $2.0 million), and is based on the allegation that the plaintiff sustained certain losses in connection with Defendants not granting the plaintiff exclusive marketing rights to distribute and operate the Defendants' PIAF Parking System in Paris and the Ile of France. The Company filed an initial memorandum of defense rejecting the plaintiff's allegations and claims. On May 19, 2014, during a preliminary Court hearing, it was established that the plaintiff, at all relevant times, was and is insolvent and under receivership, and therefore does not have the legal capacity to pursue the claim. The Court has schedule an additional preliminary hearing for October 7, 2014, where the Court will hear the plaintiff's, or its receiver's, response on the matter. Based on the advice of counsel, the Company currently believes that it has no material obligations to the Plaintiff and that there is no need for a provision for the claim. | ||
3 | On July 29, 2014, a former employee of the Company's Smart ID division filed a financial claim against the Company in the Regional Labor Court in Tel Aviv. The sum of the claim is NIS 4,744 (approximately $1,343), and is based on the allegation that the Company owes the plaintiff certain commissions. The Company has not yet filed a statement of defense. At this point, the Company cannot asses the outcome of this claim. | ||
B. | Guarantees | ||
As of June 30, 2014, the Company granted guarantees to third parties including performance guarantees and guarantees to secure customer advances in the sum of $1,102. | |||
The expiration dates of the guarantees range from July 2014 to May 2016. |
Discontinued_Operations
Discontinued Operations | 6 Months Ended | ||||||||||||||||
Jun. 30, 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 and the contingent consideration derived from the Smart ID division divesture are presented below as 'other income, net'. | |||||||||||||||||
Set forth below are the results of the discontinued operations: | |||||||||||||||||
Three months ended June 30 | Six months ended June 30 | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||
Revenues | - | 4,672 | 1,131 | 9,657 | |||||||||||||
Expenses | (156 | ) | (4,351 | ) | (1,624 | ) | (9,566 | ) | |||||||||
Other income, net | 230 | - | 223 | - | |||||||||||||
Net profit (loss) from discontinued operations | 74 | 321 | (270 | ) | 91 |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 6 Months Ended | ||
Jun. 30, 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 June 30, 2014, fair value of bank loans with fixed interest rates did not differ materially from the carrying amount. | |||
As of June 30, 2014, the Company held approximately $4,448 of short-term bank deposits (as of December 31, 2013, $ 2,601). Short-term deposits in the amount of $1,825 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 June 30, 2014 and December 31, 2013, no investment securities were held by the Company. |
Equity
Equity | 6 Months Ended | ||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||||||||
Equity | ' | ||||||||||||||||||||||||||
Note 9 - Equity | |||||||||||||||||||||||||||
A. | Stock option plans | ||||||||||||||||||||||||||
On March 26, 2014, the Company's Board of Directors approved a further increase of 750,000 options to be reserved under the Company's share option plan. The increase of the options reserve and corresponding amendment of the Company's share options plan was approved by the Company's General Shareholders Meeting on May 26, 2014. Accordingly, on June 17, 2014 the Company filed a Registration Statement on Form S-8 for the increase of the options reserve. | |||||||||||||||||||||||||||
During the six months ended June 30, 2014 and June 30, 2013, 1,006,667 and 170,000 options were granted, respectively. The vesting period for the options ranges from immediate vesting to vesting over a three year period. The exercise price of options under the plan is at varying prices. Those options expire up to five years after the date of the grant. Any options which are forfeited or cancelled before expiration become available for future grants. | |||||||||||||||||||||||||||
The fair value of each option granted to employees during the six months ended June 30, 2014 and during the year ended December 31, 2013, for which the exercise price was greater than par value, was estimated on the date of grant, using the Black-Scholes model and the following assumptions: | |||||||||||||||||||||||||||
1 | Dividend yield of zero percent for all periods. | ||||||||||||||||||||||||||
2 | Risk-free interest rate of 0.79%-1.05% and 0.57% for grants during the six months ended June 30, 2014 and June 30, 2013, respectively, based on U.S. Treasury yield curve in effect at the time of grant. | ||||||||||||||||||||||||||
3 | Estimated expected lives of 2.85-3.5 and 3.5 for grants during the six months ended June 30, 2014 and June 30, 2013, respectively. | ||||||||||||||||||||||||||
4 | Expected average volatility of 66%-67% and 70% for grants during the six months ended June 30, 2014 and June 30, 2013, respectively, which represent a weighted average standard deviation rate for the price of the Company's Ordinary Shares in the NASDAQ Global Market. | ||||||||||||||||||||||||||
The Company's options activity (including options to non-employees) and options outstanding and options exercisable as of December 31, 2013 and June 30, 2014, are summarized in the following table: | |||||||||||||||||||||||||||
Number of | Weighted | ||||||||||||||||||||||||||
options | average exercise | ||||||||||||||||||||||||||
outstanding | price per share | ||||||||||||||||||||||||||
Outstanding - December 31, 2013 | 1,789,616 | 1.65 | |||||||||||||||||||||||||
Options granted | 1,006,667 | 2.32 | |||||||||||||||||||||||||
Options expired or forfeited | (136,500 | ) | 0.83 | ||||||||||||||||||||||||
Options exercised | (186,555 | ) | 1.21 | ||||||||||||||||||||||||
Outstanding - June 30, 2014 | 2,473,228 | 1.99 | |||||||||||||||||||||||||
Exercisable as of: | |||||||||||||||||||||||||||
31-Dec-13 | 800,616 | $ | 1.53 | ||||||||||||||||||||||||
30-Jun-14 | 756,396 | $ | 1.66 | ||||||||||||||||||||||||
The weighted average fair value of options granted during the six months ended June 30, 2014 and during the year ended December 31, 2013 is $1.07 and $1.26, respectively per option. | |||||||||||||||||||||||||||
The aggregate intrinsic value of outstanding options at June 30, 2014 and December 31, 2013 is approximately $1,188 and $2,774, respectively. The aggregate intrinsic value of exercisable options at June 30, 2014 and December 31, 2013 is approximately $548 and $1,391, respectively. | |||||||||||||||||||||||||||
The following table summarizes information about options outstanding and exercisable (including options to non-employees) as of June 30, 2014: | |||||||||||||||||||||||||||
Options outstanding | Options Exercisable | ||||||||||||||||||||||||||
Number | Weighted | Number | Weighted | ||||||||||||||||||||||||
outstanding | average | Weighted | Outstanding | average | Weighted | ||||||||||||||||||||||
as of | remaining | Average | As of | remaining | Average | ||||||||||||||||||||||
Range of | June 30, | contractual | Exercise | June 30, | contractual | Exercise | |||||||||||||||||||||
exercise price | 2014 | life (years) | Price | 2014 | life (years) | Price | |||||||||||||||||||||
$ | 0.03 | 60,116 | 1.9 | $ | 0.03 | 60,116 | 1.9 | $ | 0.03 | ||||||||||||||||||
0.9 | 263,500 | 4.22 | 0.9 | 152,833 | 4.05 | 0.9 | |||||||||||||||||||||
1.08-1.45 | 234,000 | 2.79 | 1.16 | 99,000 | 2.81 | 1.18 | |||||||||||||||||||||
1.46 | 275,000 | 4.13 | 1.46 | - | - | - | |||||||||||||||||||||
1.67-2.08 | 120,000 | 2.28 | 1.71 | 77,500 | 2.33 | 1.68 | |||||||||||||||||||||
2.24-2.58 | 1,270,612 | 4.07 | 2.35 | 366,947 | 2.29 | 2.37 | |||||||||||||||||||||
3.18-3.23 | 250,000 | 4.46 | 3.21 | - | - | - | |||||||||||||||||||||
2,473,228 | 3.87 | 756,396 | 2.69 | ||||||||||||||||||||||||
As of June 30, 2014, there was approximately $1,914 of total unrecognized compensation cost related to non-vested share based compensation arrangements. That cost is expected to be recognized over a weighted-average period of approximately 2.5 years. | |||||||||||||||||||||||||||
During the six months ended June 30, 2014 and June 30, 2013, the Company recorded share-based compensation expenses in the amount of $436 and $154, respectively, in accordance with ASC 718. | |||||||||||||||||||||||||||
B. Warrants | |||||||||||||||||||||||||||
The following table summarizes information about warrants outstanding and exercisable as of June 30, 2014: | |||||||||||||||||||||||||||
Warrants outstanding | Warrants Exercisable | ||||||||||||||||||||||||||
Number | Weighted | Number | Weighted | ||||||||||||||||||||||||
outstanding | average | Weighted | Outstanding | average | Weighted | ||||||||||||||||||||||
as of | remaining | Average | As of | remaining | Average | ||||||||||||||||||||||
Range of | June 30, | contractual | Exercise | June 30, | contractual | Exercise | |||||||||||||||||||||
exercise price | 2014 | life (years) | Price | 2014 | life (years) | Price | |||||||||||||||||||||
$ | 0.03 | 110,861 | 2.6 | $ | 0.03 | 56,644 | 2.43 | $ | 0.03 | ||||||||||||||||||
$ | 3.75 | 260,869 | 1.6 | 3.75 | 260,869 | 1.6 | 3.75 | ||||||||||||||||||||
371,730 | 1.9 | 317,513 | 1.76 |
Operating_Segments
Operating Segments | 6 Months Ended | ||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||
Operating Segments [Abstract] | ' | ||||||||||||||||||||
Operating Segments | ' | ||||||||||||||||||||
Note 10 - 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 June 30, 2014 | |||||||||||||||||||||
Petroleum | Retail and | Parking | Other | Consolidated | |||||||||||||||||
Mass Transit | |||||||||||||||||||||
Revenues | $ | 1,509 | $ | 4,753 | $ | 502 | $ | 390 | $ | 7,154 | |||||||||||
Reportable segment gross profit * | 941 | 2,026 | 335 | 190 | 3,492 | ||||||||||||||||
Reconciliation of reportable segment | |||||||||||||||||||||
gross profit to profit for the period | |||||||||||||||||||||
Depreciation | (177 | ) | |||||||||||||||||||
Stock based compensation | (8 | ) | |||||||||||||||||||
Gross profit for the period | $ | 3,307 | |||||||||||||||||||
Three months ended June 30, 2013 | |||||||||||||||||||||
Petroleum | Retail and | Parking | Other | Consolidated | |||||||||||||||||
Mass Transit | |||||||||||||||||||||
Revenues | $ | 1,068 | $ | 2,594 | $ | 656 | $ | 216 | $ | 4,534 | |||||||||||
Reportable segment gross profit * | 779 | 1,394 | 430 | 152 | 2,755 | ||||||||||||||||
Reconciliation of reportable segment | |||||||||||||||||||||
gross profit to profit for the period | |||||||||||||||||||||
Depreciation | (131 | ) | |||||||||||||||||||
Stock based compensation | (4 | ) | |||||||||||||||||||
Gross profit for the period | $ | 2,620 | |||||||||||||||||||
Six months ended June 30, 2014 | |||||||||||||||||||||
Petroleum | Retail and | Parking | Other | Consolidated | |||||||||||||||||
Mass Transit | |||||||||||||||||||||
Revenues | $ | 2,168 | $ | 8,140 | $ | 1,183 | $ | 861 | $ | 12,352 | |||||||||||
Reportable segment gross profit * | 1,376 | 3,679 | 771 | 453 | 6,279 | ||||||||||||||||
Reconciliation of reportable segment | |||||||||||||||||||||
gross profit to profit for the period | |||||||||||||||||||||
Depreciation | (360 | ) | |||||||||||||||||||
Stock based compensation | (14 | ) | |||||||||||||||||||
Gross profit for the period | $ | 5,905 | |||||||||||||||||||
Six months ended June 30, 2013 | |||||||||||||||||||||
Petroleum | Retail and | Parking | Other | Consolidated | |||||||||||||||||
Mass Transit | |||||||||||||||||||||
Revenues | $ | 2,246 | $ | 4,321 | $ | 1,161 | $ | 448 | $ | 8,176 | |||||||||||
Reportable segment gross profit * | 1,494 | 2,409 | 723 | 280 | 4,906 | ||||||||||||||||
Reconciliation of reportable segment | |||||||||||||||||||||
gross profit to profit for the period | |||||||||||||||||||||
Depreciation | (275 | ) | |||||||||||||||||||
Stock based compensation | (8 | ) | |||||||||||||||||||
Gross profit for the period | $ | 4,623 |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 6 Months Ended | ||
Jun. 30, 2014 | |||
Significant Accounting Policies [Abstract] | ' | ||
Recent Accounting Pronouncements | ' | ||
A. | In April 2014, the Financial Accounting Standards Board ("FASB") issued ASU 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which changes the requirements for reporting discontinued operations. Under the ASU, discontinued operations is defined as either a: | ||
· | Component of an entity, or group of components, that | ||
o | Has been disposed of meets the criteria to be classified as held-for-sale, or has been abandoned/spun-off; and | ||
o | Represents a strategic shift that has (or will have) a major effect on an entity's operations and financial results, or a | ||
· | Business or nonprofit activity that, on acquisition, meets the criteria to be classified as held-for-sale. | ||
Under this ASU, continuing involvement in the disposed component is no longer relevant for evaluating discontinued operations presentation. However, the ASU requires specific disclosures about entities' continuing involvement with discontinued operations. | |||
The new ASU is effective for the Company prospectively for both: | |||
· | All disposals (or classifications as held for sale) of components that occur within annual periods beginning on or after December 15, 2014, and interim periods within those years, and | ||
· | All business that, on acquisition, are classified as held for sale that occur within annual periods beginning on or after December 15, 2014, and interim periods within those years. | ||
The extent of this standard's effect depends on the management's plan to divest operations in the future, if at all, and the Company is currently evaluating its potential effect on the consolidated financial statements and related disclosures. | |||
B. | On May 28, 2014, the Financial Accounting Standards Board ("FASB") issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which requires an entity to recognize the amount of revenues to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for the Company on January 1, 2017. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is currently evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. |
Other_Receivables_and_Prepaid_1
Other Receivables and Prepaid Expenses (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Other Receivables and Prepaid Expenses [Abstract] | ' | ||||||||
Schedule of Other Receivables and Prepaid Expenses | ' | ||||||||
30-Jun | 31-Dec | ||||||||
2014 | 2013 | ||||||||
Government institutions | $ | 450 | $ | 309 | |||||
Prepaid expenses | 1,058 | 818 | |||||||
Receivables under contractual obligations to be transferred to others * | 600 | 1,288 | |||||||
Receivables related to the Smart ID Division Divestiture | - | 1,572 | |||||||
Other receivables | 1,269 | 645 | |||||||
$ | 3,377 | $ | 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) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Inventories [Abstract] | ' | ||||||||
Schedule of Inventory | ' | ||||||||
30-Jun | 31-Dec | ||||||||
2014 | 2013 | ||||||||
Raw materials | $ | 1,095 | $ | 775 | |||||
Work in progress | 506 | 665 | |||||||
Finished products | 1,971 | 2,037 | |||||||
$ | 3,572 | $ | 3,477 |
Other_Current_Liabilities_Tabl
Other Current Liabilities (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Other Current Liabilities [Abstract] | ' | ||||||||
Summary of Other Current Liabilities | ' | ||||||||
30-Jun | 31-Dec | ||||||||
2014 | 2013 | ||||||||
Employees and related expenses | $ | 1,526 | $ | 2,116 | |||||
Accrued expenses | 792 | 1,541 | |||||||
Customer advances | 241 | 877 | |||||||
Government institutions related to the Smart ID Division Divesture | - | 1,572 | |||||||
Other current liabilities | 452 | 193 | |||||||
$ | 3,011 | $ | 6,299 |
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Discontinued Operations [Abstract] | ' | ||||||||||||||||
Schedule of Results of Discontinued Operations | ' | ||||||||||||||||
Three months ended June 30 | Six months ended June 30 | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||
Revenues | - | 4,672 | 1,131 | 9,657 | |||||||||||||
Expenses | (156 | ) | (4,351 | ) | (1,624 | ) | (9,566 | ) | |||||||||
Other income, net | 230 | - | 223 | - | |||||||||||||
Net profit (loss) from discontinued operations | 74 | 321 | (270 | ) | 91 |
Equity_Tables
Equity (Tables) | 6 Months Ended | ||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||||||||
Schedule of Stock Option Activity | ' | ||||||||||||||||||||||||||
The Company's options activity (including options to non-employees) and options outstanding and options exercisable as of December 31, 2013 and June 30, 2014, are summarized in the following table: | |||||||||||||||||||||||||||
Number of | Weighted | ||||||||||||||||||||||||||
options | average exercise | ||||||||||||||||||||||||||
outstanding | price per share | ||||||||||||||||||||||||||
Outstanding - December 31, 2013 | 1,789,616 | 1.65 | |||||||||||||||||||||||||
Options granted | 1,006,667 | 2.32 | |||||||||||||||||||||||||
Options expired or forfeited | (136,500 | ) | 0.83 | ||||||||||||||||||||||||
Options exercised | (186,555 | ) | 1.21 | ||||||||||||||||||||||||
Outstanding - June 30, 2014 | 2,473,228 | 1.99 | |||||||||||||||||||||||||
Exercisable as of: | |||||||||||||||||||||||||||
31-Dec-13 | 800,616 | $ | 1.53 | ||||||||||||||||||||||||
30-Jun-14 | 756,396 | $ | 1.66 | ||||||||||||||||||||||||
Summary of Options Outstanding and Exercisable | ' | ||||||||||||||||||||||||||
The following table summarizes information about options outstanding and exercisable (including options to non-employees) as of June 30, 2014: | |||||||||||||||||||||||||||
Options outstanding | Options Exercisable | ||||||||||||||||||||||||||
Number | Weighted | Number | Weighted | ||||||||||||||||||||||||
outstanding | average | Weighted | Outstanding | average | Weighted | ||||||||||||||||||||||
as of | remaining | Average | As of | remaining | Average | ||||||||||||||||||||||
Range of | June 30, | contractual | Exercise | June 30, | contractual | Exercise | |||||||||||||||||||||
exercise price | 2014 | life (years) | Price | 2014 | life (years) | Price | |||||||||||||||||||||
$ | 0.03 | 60,116 | 1.9 | $ | 0.03 | 60,116 | 1.9 | $ | 0.03 | ||||||||||||||||||
0.9 | 263,500 | 4.22 | 0.9 | 152,833 | 4.05 | 0.9 | |||||||||||||||||||||
1.08-1.45 | 234,000 | 2.79 | 1.16 | 99,000 | 2.81 | 1.18 | |||||||||||||||||||||
1.46 | 275,000 | 4.13 | 1.46 | - | - | - | |||||||||||||||||||||
1.67-2.08 | 120,000 | 2.28 | 1.71 | 77,500 | 2.33 | 1.68 | |||||||||||||||||||||
2.24-2.58 | 1,270,612 | 4.07 | 2.35 | 366,947 | 2.29 | 2.37 | |||||||||||||||||||||
3.18-3.23 | 250,000 | 4.46 | 3.21 | - | - | - | |||||||||||||||||||||
2,473,228 | 3.87 | 756,396 | 2.69 | ||||||||||||||||||||||||
Schedule of Warrants Outstanding and Exercisable | ' | ||||||||||||||||||||||||||
The following table summarizes information about warrants outstanding and exercisable as of June 30, 2014: | |||||||||||||||||||||||||||
Warrants outstanding | Warrants Exercisable | ||||||||||||||||||||||||||
Number | Weighted | Number | Weighted | ||||||||||||||||||||||||
outstanding | average | Weighted | Outstanding | average | Weighted | ||||||||||||||||||||||
as of | remaining | Average | As of | remaining | Average | ||||||||||||||||||||||
Range of | June 30, | contractual | Exercise | June 30, | contractual | Exercise | |||||||||||||||||||||
exercise price | 2014 | life (years) | Price | 2014 | life (years) | Price | |||||||||||||||||||||
$ | 0.03 | 110,861 | 2.6 | $ | 0.03 | 56,644 | 2.43 | $ | 0.03 | ||||||||||||||||||
$ | 3.75 | 260,869 | 1.6 | 3.75 | 260,869 | 1.6 | 3.75 | ||||||||||||||||||||
371,730 | 1.9 | 317,513 | 1.76 |
Operating_Segments_Tables
Operating Segments (Tables) | 6 Months Ended | ||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||
Operating Segments [Abstract] | ' | ||||||||||||||||||||
Reconciliation of Segment Information to Consolidated Financial Information | ' | ||||||||||||||||||||
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 June 30, 2014 | |||||||||||||||||||||
Petroleum | Retail and | Parking | Other | Consolidated | |||||||||||||||||
Mass Transit | |||||||||||||||||||||
Revenues | $ | 1,509 | $ | 4,753 | $ | 502 | $ | 390 | $ | 7,154 | |||||||||||
Reportable segment gross profit * | 941 | 2,026 | 335 | 190 | 3,492 | ||||||||||||||||
Reconciliation of reportable segment | |||||||||||||||||||||
gross profit to profit for the period | |||||||||||||||||||||
Depreciation | (177 | ) | |||||||||||||||||||
Stock based compensation | (8 | ) | |||||||||||||||||||
Gross profit for the period | $ | 3,307 | |||||||||||||||||||
Three months ended June 30, 2013 | |||||||||||||||||||||
Petroleum | Retail and | Parking | Other | Consolidated | |||||||||||||||||
Mass Transit | |||||||||||||||||||||
Revenues | $ | 1,068 | $ | 2,594 | $ | 656 | $ | 216 | $ | 4,534 | |||||||||||
Reportable segment gross profit * | 779 | 1,394 | 430 | 152 | 2,755 | ||||||||||||||||
Reconciliation of reportable segment | |||||||||||||||||||||
gross profit to profit for the period | |||||||||||||||||||||
Depreciation | (131 | ) | |||||||||||||||||||
Stock based compensation | (4 | ) | |||||||||||||||||||
Gross profit for the period | $ | 2,620 | |||||||||||||||||||
Six months ended June 30, 2014 | |||||||||||||||||||||
Petroleum | Retail and | Parking | Other | Consolidated | |||||||||||||||||
Mass Transit | |||||||||||||||||||||
Revenues | $ | 2,168 | $ | 8,140 | $ | 1,183 | $ | 861 | $ | 12,352 | |||||||||||
Reportable segment gross profit * | 1,376 | 3,679 | 771 | 453 | 6,279 | ||||||||||||||||
Reconciliation of reportable segment | |||||||||||||||||||||
gross profit to profit for the period | |||||||||||||||||||||
Depreciation | (360 | ) | |||||||||||||||||||
Stock based compensation | (14 | ) | |||||||||||||||||||
Gross profit for the period | $ | 5,905 | |||||||||||||||||||
Six months ended June 30, 2013 | |||||||||||||||||||||
Petroleum | Retail and | Parking | Other | Consolidated | |||||||||||||||||
Mass Transit | |||||||||||||||||||||
Revenues | $ | 2,246 | $ | 4,321 | $ | 1,161 | $ | 448 | $ | 8,176 | |||||||||||
Reportable segment gross profit * | 1,494 | 2,409 | 723 | 280 | 4,906 | ||||||||||||||||
Reconciliation of reportable segment | |||||||||||||||||||||
gross profit to profit for the period | |||||||||||||||||||||
Depreciation | (275 | ) | |||||||||||||||||||
Stock based compensation | (8 | ) | |||||||||||||||||||
Gross profit for the period | $ | 4,623 | |||||||||||||||||||
* 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 | 6 Months Ended | |||
In Thousands, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
USD ($) | EUR (€) | USD ($) | USD ($) | USD ($) | USD ($) | |
Organization and Basis of Presentation [Abstract] | ' | ' | ' | ' | ' | ' |
Foreign currency translation released following sale of a subsidiary | ($336) | ' | ' | ' | ($336) | ' |
Loss from divestiture | 343 | ' | ' | ' | ' | ' |
Proceeds from sale of subsidiary | 960 | 700 | ' | ' | ' | ' |
Gain from contingent consideration | ' | ' | ' | ' | $230 | ' |
Other_Receivables_and_Prepaid_2
Other Receivables and Prepaid Expenses (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Other Receivables and Prepaid Expenses [Abstract] | ' | ' |
Government institutions | $450 | $309 |
Prepaid expenses | 1,058 | 818 |
Receivables under contractual obligations to be transferred to others | 600 | 1,288 |
Receivables related to the Smart ID Division Divestiture | ' | 1,572 |
Other receivables | 1,269 | 645 |
Total other receivables and prepaid expenses | $3,377 | $4,632 |
Inventories_Details
Inventories (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventories [Abstract] | ' | ' |
Raw materials | $1,095 | $775 |
Work in progress | 506 | 665 |
Finished products | 1,971 | 2,037 |
Inventories | $3,572 | $3,477 |
Other_Current_Liabilities_Deta
Other Current Liabilities (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Other Current Liabilities [Abstract] | ' | ' |
Employees and related expenses | $1,526 | $2,116 |
Accrued expenses | 792 | 1,541 |
Customer advances | 241 | 877 |
Government institutions related to the Smart ID Division Divesture | ' | 1,572 |
Other current liabilities | 452 | 193 |
Total other current liabilities | $3,011 | $6,299 |
Commitments_and_Contingencies_
Commitments and Contingencies (Legal Claims) (Details) | 1 Months Ended | 6 Months Ended | 1 Months Ended | |||
In Thousands, unless otherwise specified | Jan. 31, 2013 | Jan. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Oct. 31, 2013 | Oct. 31, 2013 |
Former Employee One [Member] | Former Employee One [Member] | Former Employee Two [Member] | Former Employee Two [Member] | French Company [Member] | French Company [Member] | |
USD ($) | ILS | USD ($) | ILS | USD ($) | EUR (€) | |
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' |
Lawsuit, damages sought | $375 | 1,400 | $1,343 | 4,744 | $2,000 | € 1,500 |
Subsequent event, date | ' | ' | 29-Jul-14 | 29-Jul-14 | ' | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies (Guarantees) (Details) (USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
Commitments and Contingencies [Abstract] | ' |
Granted guarantee to third party | $1,102 |
Gurantee obligation expiration date, earliest | 31-Jul-14 |
Gurantee obligation expiration date, latest | 31-May-16 |
Discontinued_Operations_Schedu
Discontinued Operations (Schedule of Results) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Discontinued Operations [Abstract] | ' | ' | ' | ' |
Revenues | ' | $4,672 | $1,131 | $9,657 |
Expenses | -156 | -4,351 | -1,624 | -9,566 |
Other loss, net | 230 | ' | 223 | ' |
Net loss from discontinued operations | $74 | $321 | ($270) | $91 |
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value of Financial Instruments [Abstract] | ' | ' |
Short-term investments | $4,448 | $2,601 |
Short term deposit pledged as security | $1,825 | $2,381 |
Equity_Narrative_Details
Equity (Narrative) (Details) (USD $) | 6 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Equity [Abstract] | ' | ' |
Share option plan, increase of reserved options | 750,000 | ' |
Options granted | 1,006,667 | 170,000 |
Unrecognized compensation expense | $1,914 | ' |
Expected cost period to be recognized | '2 years 6 months | ' |
Share-based compensation expense | $436 | $154 |
Equity_Schedule_of_Fair_Value_
Equity (Schedule of Fair Value Assumptions) (Details) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Stock option plans | ' | ' |
Dividend yield | 0.00% | 0.00% |
Risk-free interest rate | ' | 0.57% |
Expected life | ' | '3 years 6 months |
Expected volatility | ' | 70.00% |
Minimum [Member] | ' | ' |
Stock option plans | ' | ' |
Risk-free interest rate | 0.79% | ' |
Expected life | '2 years 10 months 6 days | ' |
Expected volatility | 66.00% | ' |
Maximum [Member] | ' | ' |
Stock option plans | ' | ' |
Risk-free interest rate | 1.05% | ' |
Expected life | '3 years 6 months | ' |
Expected volatility | 67.00% | ' |
Equity_Schedule_of_Stock_Optio
Equity (Schedule of Stock Options Activity) (Details) (USD $) | 6 Months Ended | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 |
Number of options outstanding | ' | ' | ' | ' |
Granted | 1,006,667 | 170,000 | ' | ' |
Cancelled or forfeited | 136,500 | ' | ' | ' |
Exercised | -186,555 | ' | ' | ' |
Outstanding | 2,473,228 | ' | 1,789,616 | ' |
Exercisable | 756,396 | ' | 800,616 | ' |
Weighted average exercise price per share | ' | ' | ' | ' |
Outstanding | $1.65 | ' | ' | $1.99 |
Granted | $2.32 | ' | ' | ' |
Cancelled or forfeited | $0.83 | ' | ' | ' |
Exercised | $1.21 | ' | ' | ' |
Exercisable | $1.66 | ' | $1.53 | ' |
Aggregate intrinsic value | ' | ' | ' | ' |
Outstanding | $1,188 | ' | $2,774 | ' |
Exercisable | $548 | ' | $1,391 | ' |
Weighted average fair value of options granted | $1.07 | ' | $1.26 | ' |
Equity_Schedule_of_Options_Out
Equity (Schedule of Options Outstanding and Exercisable) (Details) (USD $) | 6 Months Ended |
Jun. 30, 2014 | |
Options outstanding | ' |
Number outstanding | 2,473,228 |
Weighted average remaining contractual life | '3 years 10 months 13 days |
Options exercisable | ' |
Number outstanding | 756,396 |
Weighted average remainging cotractual life | '2 years 8 months 9 days |
$0.03 [Member] | ' |
Options outstanding | ' |
Number outstanding | 60,116 |
Weighted average remaining contractual life | '1 year 10 months 24 days |
Weighted average exercise price | 0.03 |
Options exercisable | ' |
Number outstanding | 60,116 |
Weighted average remainging cotractual life | '1 year 10 months 24 days |
Weighted average exercise price | 0.03 |
$0.90 [Member] | ' |
Options outstanding | ' |
Number outstanding | 263,500 |
Weighted average remaining contractual life | '4 years 2 months 19 days |
Weighted average exercise price | 0.9 |
Options exercisable | ' |
Number outstanding | 152,833 |
Weighted average remainging cotractual life | '4 years 18 days |
Weighted average exercise price | 0.9 |
$1.08 - $1.45 [Member] | ' |
Options outstanding | ' |
Number outstanding | 234,000 |
Weighted average remaining contractual life | '2 years 9 months 15 days |
Weighted average exercise price | 1.16 |
Options exercisable | ' |
Number outstanding | 99,000 |
Weighted average remainging cotractual life | '2 years 9 months 22 days |
Weighted average exercise price | 1.18 |
$1.46 [Member] | ' |
Options outstanding | ' |
Number outstanding | 275,000 |
Weighted average remaining contractual life | '4 years 1 month 17 days |
Weighted average exercise price | 1.46 |
Options exercisable | ' |
Number outstanding | ' |
Weighted average remainging cotractual life | ' |
Weighted average exercise price | ' |
$1.67 - $2.08 [Member] | ' |
Options outstanding | ' |
Number outstanding | 120,000 |
Weighted average remaining contractual life | '2 years 3 months 11 days |
Weighted average exercise price | 1.71 |
Options exercisable | ' |
Number outstanding | 77,500 |
Weighted average remainging cotractual life | '2 years 3 months 29 days |
Weighted average exercise price | 1.68 |
$2.24 - $2.58 [Member] | ' |
Options outstanding | ' |
Number outstanding | 1,270,612 |
Weighted average remaining contractual life | '4 years 26 days |
Weighted average exercise price | 2.35 |
Options exercisable | ' |
Number outstanding | 366,947 |
Weighted average remainging cotractual life | '2 years 3 months 15 days |
Weighted average exercise price | 2.37 |
$3.18 - $3.23 [Member] | ' |
Options outstanding | ' |
Number outstanding | 250,000 |
Weighted average remaining contractual life | '4 years 5 months 16 days |
Weighted average exercise price | 3.21 |
Options exercisable | ' |
Number outstanding | ' |
Weighted average remainging cotractual life | ' |
Weighted average exercise price | ' |
Equity_Schedule_of_Warrants_Ou
Equity (Schedule of Warrants Outstanding and Exercisable) (Details) (USD $) | 6 Months Ended |
Jun. 30, 2014 | |
Warrants outstanding | ' |
Number outstanding | 371,730 |
Warrants exercisable | ' |
Number outstanding | 317,513 |
$0.03 [Member] | ' |
Warrants outstanding | ' |
Number outstanding | 110,861 |
Weighted average remaining contractual life | '2 years 7 months 6 days |
Weighted average exercise price | $0.03 |
Warrants exercisable | ' |
Number outstanding | 56,644 |
Weighted average remaining contractual life | '2 years 5 months 5 days |
Weighted average exercise price | $0.03 |
$3.75 [Member] | ' |
Warrants outstanding | ' |
Number outstanding | 260,869 |
Weighted average remaining contractual life | '1 year 7 months 6 days |
Weighted average exercise price | $3.75 |
Warrants exercisable | ' |
Number outstanding | 260,869 |
Weighted average remaining contractual life | '1 year 7 months 6 days |
Weighted average exercise price | $3.75 |
Operating_Segments_Details
Operating Segments (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Revenues | $7,154 | $4,534 | $12,352 | $8,176 | ||||
Reportable segment gross profit | 3,492 | [1] | 2,755 | [1] | 6,279 | [1] | 4,906 | [1] |
Reconciliation of reportable segment gross profit to profit for the period | ' | ' | ' | ' | ||||
Depreciation | -177 | -131 | -360 | -275 | ||||
Stock based compensation | -8 | -4 | -14 | -8 | ||||
Gross profit | 3,307 | 2,620 | 5,905 | 4,623 | ||||
Petroleum [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Revenues | 1,509 | 1,068 | 2,168 | 2,246 | ||||
Reportable segment gross profit | 941 | [1] | 779 | [1] | 1,376 | [1] | 1,494 | [1] |
Retail and Mass Transit [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Revenues | 4,753 | 2,594 | 8,140 | 4,321 | ||||
Reportable segment gross profit | 2,026 | [1] | 1,394 | [1] | 3,679 | [1] | 2,409 | [1] |
Parking [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Revenues | 502 | 656 | 1,183 | 1,161 | ||||
Reportable segment gross profit | 335 | [1] | 430 | [1] | 771 | [1] | 723 | [1] |
Other [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Revenues | 390 | 216 | 861 | 448 | ||||
Reportable segment gross profit | $190 | [1] | $152 | [1] | $453 | [1] | $280 | [1] |
[1] | Gross profit as reviewed by the CODM, represents gross profit, adjusted to exclude depreciation and stock based compensation. |