Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2015USD ($)shares | |
Document And Entity Information [Abstract] | |
Document Type | 10-K |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2015 |
Document Fiscal Year Focus | 2,015 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | ON TRACK INNOVATIONS LTD |
Entity Central Index Key | 1,021,604 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Smaller Reporting Company |
Entity Well-known Seasoned Issuer | No |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Common Stock, Shares Outstanding | shares | 40,835,974 |
Entity Public Float | $ | $ 57,987,083 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets | ||
Cash and cash equivalents | $ 5,450 | $ 5,351 |
Short-term investments | 5,454 | 11,048 |
Trade receivables (net of allowance for doubtful accounts of $778 and $671 as of December 31, 2015 and December 31, 2014, respectively) | 2,418 | 4,299 |
Other receivables and prepaid expenses | 2,183 | 2,530 |
Inventories | 3,330 | 3,703 |
Total current assets | 18,835 | 26,931 |
Long term restricted deposit for employees benefit | 524 | 555 |
Severance pay deposits | 455 | 614 |
Property, plant and equipment, net | 8,668 | $ 9,234 |
Intangible assets, net | $ 180 | |
Deferred tax asset | $ 47 | |
Total Assets | $ 28,662 | 37,381 |
Current Liabilities | ||
Short-term bank credit and current maturities of long-term bank loans | 3,815 | 3,617 |
Trade payables | 5,441 | 7,306 |
Other current liabilities | 2,724 | 2,656 |
Total current liabilities | 11,980 | 13,579 |
Long-Term Liabilities | ||
Long-term loans, net of current maturities | 2,359 | 2,161 |
Accrued severance pay | 1,148 | 1,456 |
Deferred tax liability | 352 | 302 |
Total long-term liabilities | 3,859 | 3,919 |
Total Liabilities | $ 15,839 | $ 17,498 |
Commitments and Contingencies | ||
Shareholders' Equity | ||
Ordinary shares of NIS 0.1 par value: Authorized - 50,000,000 shares as of December 31, 2015 and 2014; issued: 42,014,673 and 41,996,602 shares as of December 31, 2015 and 2014, respectively; outstanding: 40,835,974 and 40,817,903 shares as of December 31, 2015 and 2014, respectively | $ 1,055 | $ 1,055 |
Additional paid-in capital | 225,925 | 224,234 |
Treasury shares at cost - 1,178,699 shares as of December 31, 2015 and 2014 | (2,000) | (2,000) |
Accumulated other comprehensive loss | (1,084) | (800) |
Accumulated deficit | (209,254) | (202,103) |
Total Shareholder's equity | 14,642 | 20,386 |
Non-controlling interest | (1,819) | (503) |
Total Equity | 12,823 | 19,883 |
Total Liabilities and Equity | $ 28,662 | $ 37,381 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) $ in Thousands | Dec. 31, 2015USD ($)shares | Dec. 31, 2014USD ($)shares |
Consolidated Balance Sheets [Abstract] | ||
Allowance for doubtful accounts | $ | $ 778 | $ 671 |
Ordinary shares, shares authorized | 50,000,000 | 50,000,000 |
Ordinary shares, shares issued | 42,014,673 | 41,996,602 |
Ordinary shares, shares outstanding | 40,835,974 | 40,817,903 |
Treasury shares held | 1,178,699 | 1,178,699 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues | |||
Sales | $ 13,123 | $ 17,286 | $ 15,067 |
Licensing and transaction fees | 6,738 | 5,776 | 4,801 |
Total revenues | 19,861 | 23,062 | 19,868 |
Cost of revenues | |||
Cost of sales | 9,396 | $ 12,006 | $ 9,140 |
Cost of licensing | 325 | ||
Total cost of revenues | 9,721 | $ 12,006 | $ 9,140 |
Gross profit | 10,140 | 11,056 | 10,728 |
Operating expenses | |||
Research and development | 3,648 | 4,664 | 4,405 |
Selling and marketing | 7,246 | 8,230 | 7,132 |
General and administrative | 4,729 | 6,142 | 6,939 |
Patent litigation and maintenance | 858 | 1,543 | 1,351 |
Other expenses (income), net | $ 914 | $ (13) | (4,181) |
Amortization and impairment of intangible assets and goodwill | 894 | ||
Total operating expenses | $ 17,395 | $ 20,566 | 16,540 |
Operating loss from continuing operations | (7,255) | (9,510) | (5,812) |
Financial expenses, net | (619) | (577) | (913) |
Loss from continuing operations before taxes on income | (7,874) | (10,087) | (6,725) |
Income tax | (122) | (110) | (203) |
Net loss from continuing operations | (7,996) | (10,197) | (6,928) |
Net income from discontinued operations | 757 | 315 | 3,777 |
Net loss | (7,239) | (9,882) | (3,151) |
Net loss (income) attributable to non-controlling interest | 88 | (42) | 103 |
Net loss attributable to shareholders | $ (7,151) | $ (9,924) | $ (3,048) |
Basic and diluted net profit (loss) attributable to shareholders per ordinary share | |||
From continuing operations | $ (0.20) | $ (0.30) | $ (0.21) |
From discontinued operations | 0.02 | 0.01 | 0.12 |
Total | $ (0.18) | $ (0.29) | $ (0.09) |
Weighted average number of ordinary shares used in computing basic and diluted net profit (loss) per ordinary share | 40,869,820 | 34,013,870 | 32,673,123 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Total comprehensive loss: | |||
Net loss | $ (7,239) | $ (9,882) | $ (3,151) |
Foreign currency translation adjustments | $ (284) | (435) | $ 44 |
Foreign currency translation released following sale of a subsidiary | $ (393) | ||
Net unrealized gain on available-for-sale securities | $ 34 | ||
Reclassification adjustment for loss on available-for-sale securities | (69) | ||
Total comprehensive loss | $ (7,523) | $ (10,710) | (3,142) |
Comprehensive loss (income) attributable to the non-controlling interest | 88 | (42) | 86 |
Total comprehensive loss attributable to shareholders | $ (7,435) | $ (10,752) | $ (3,056) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | 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] | |||
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 issued to employees | 364 | 364 | ||||||||
Exercise of options | 1,063 | $ 34 | $ 1,029 | |||||||
Exercise of options, shares | 1,261,500 | |||||||||
Foreign currency translation adjustments | 44 | $ 27 | $ 17 | |||||||
Change in net unrealized gain on available-for-sale securities | (35) | $ (35) | ||||||||
Net income (loss) | (3,151) | $ (3,048) | $ (103) | |||||||
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 issued to employees | 875 | 875 | ||||||||
Exercise of options and warrants | 870 | $ 16 | 854 | |||||||
Exercise of options and warrants, shares | 609,591 | |||||||||
Issuance of shares, net of issuance expenses of $365 | $ 10,444 | $ 185 | $ 10,259 | |||||||
Issuance of shares, net of issuance expenses of $365, shares | 7,187,500 | 7,187,500 | ||||||||
Foreign currency translation adjustments | $ (828) | $ (828) | ||||||||
Net income (loss) | (9,882) | $ (9,924) | $ 42 | |||||||
Balance at Dec. 31, 2014 | 19,883 | $ 1,055 | $ 224,234 | $ (2,000) | $ (800) | $ (202,103) | $ (503) | |||
Balance, shares at Dec. 31, 2014 | 41,996,602 | |||||||||
Changes during the year | ||||||||||
Stock-based compensation related to options issued to employees | $ 463 | 463 | ||||||||
Decrease in the ownership rate in subsidiaries | [1] | $ 1,228 | $ (1,228) | |||||||
Exercise of options and warrants | [2] | [2] | ||||||||
Exercise of options and warrants, shares | 18,071 | |||||||||
Foreign currency translation adjustments | $ (284) | $ (284) | ||||||||
Net income (loss) | (7,239) | $ (7,151) | $ (88) | |||||||
Balance at Dec. 31, 2015 | $ 12,823 | $ 1,055 | $ 225,925 | $ (2,000) | $ (1,084) | $ (209,254) | $ (1,819) | |||
Balance, shares at Dec. 31, 2015 | 42,014,673 | |||||||||
[1] | See Note 10D. | |||||||||
[2] | Less than $1. |
Consolidated Statements of Cha7
Consolidated Statements of Changes in Equity (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 31, 2014USD ($) | |
Consolidated Statements of Changes in Equity [Abstract] | |
Stock issuance costs | $ 365 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Cash flows from continuing operating activities | ||||
Net loss from continuing operations | $ (7,996) | $ (10,197) | $ (6,928) | |
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 and others | 463 | 875 | 307 | |
(Gain) loss on sale of property and equipment | $ (4) | $ (10) | 91 | |
Amortization of intangible assets | 81 | |||
Impairment of goodwill and intangible assets | 813 | |||
Loss (gain) from sale and shut down of subsidiaries (Supplement C) | $ (3) | 231 | ||
Accrued interest and linkage differences | $ 27 | 87 | (166) | |
Depreciation | 1,251 | 1,307 | 1,135 | |
Changes in operating assets and liabilities: | ||||
Accrued severance pay, net | (149) | (126) | (3,165) | |
Deferred tax, net | 122 | 108 | 112 | |
Decrease (increase) in trade receivables, net | 2,212 | 432 | (765) | |
Decrease in other receivables and prepaid expenses | 393 | 132 | 1,332 | |
Decrease (increase) in inventories | 254 | (334) | (11) | |
Decrease in trade payables | (1,290) | (630) | (181) | |
Increase (decrease) in other current liabilities | 223 | (1,263) | (3,472) | |
Net cash used in continuing operating activities | (4,494) | (9,622) | (10,586) | |
Cash flows from continuing investing activities | ||||
Purchase of property and equipment | (1,515) | (1,573) | (2,784) | |
Purchase of short-term investments | (4,181) | $ (11,433) | (325) | |
Proceeds from restricted deposit for employees benefits | 144 | 3,390 | ||
Proceeds from maturity or sale of short-term investments | 9,779 | $ 2,967 | $ 6,549 | |
Investment in capitalized product costs | (200) | |||
Investment in restricted deposit for employees benefits | (281) | |||
Proceeds from sale of property and equipment | 38 | $ 14 | $ 168 | |
Net cash provided by (used in) continuing investing activities | 3,784 | (10,025) | 6,998 | |
Cash flows from continuing financing activities | ||||
Decrease in short-term bank credit, net | (422) | (25) | (1,073) | |
Proceeds from long-term bank loans | 1,480 | 52 | 3,184 | |
Repayment of long-term bank loans | $ (747) | (1,019) | $ (1,316) | |
Proceeds from issuance of shares, net of issuance expenses | 10,444 | |||
Proceeds from exercise of options and warrants | [1] | 965 | $ 968 | |
Net cash provided by continuing financing activities | $ 311 | 10,417 | 1,763 | |
Cash flows from discontinued operations | ||||
Net cash used in discontinued operating activities | (45) | (1,430) | (1,391) | |
Net cash provided by discontinued investing activities | $ 795 | 1,708 | 9,858 | |
Net cash used in discontinued financing activities | (154) | (985) | ||
Total net cash provided by discontinued operations | $ 750 | 124 | 7,482 | |
Effect of exchange rate changes on cash and cash equivalents | (252) | (505) | 1 | |
Increase (decrease) in cash and cash equivalents | 99 | (9,611) | 5,658 | |
Cash and cash equivalents at the beginning of the year | 5,351 | 14,962 | 9,304 | |
Cash and cash equivalents at the end of the year | 5,450 | 5,351 | 14,962 | |
A. Cash paid during the period for: | ||||
Interest paid | $ 255 | 316 | 286 | |
Income taxes paid | $ 32 | 194 | ||
B. Non-cash investing and financing transactions: | ||||
Receivables for issuance of equity, collected immediately after balance sheet date | 95 | |||
C. Sale and shutdown of consolidated subsidiaries, see note 1B(3) and 1B(4): | ||||
Working capital surplus | $ 9 | (4) | ||
Property and equipment | 41 | |||
Intangible assets | 248 | |||
Deferred tax liability | $ (46) | |||
Short-term bank credit | $ (12) | |||
Non-controlling interest | $ (5) | |||
Other comprehensive loss | $ (3) | |||
Proceeds from sale of subsidiary | ||||
Loss (gain) on sale and shutdown of subsidiaries | $ (3) | $ 231 | ||
[1] | Less than $1 |
General
General | 12 Months Ended |
Dec. 31, 2015 | |
General [Abstract] | |
General | Note 1 - General A. Introduction 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 the NASDAQ Global Market (“NASDAQ”). The Company operates in three operating segments, (a) Petroleum, (b) Retail and Mass Transit Ticketing and (c) Parking. See Note 15. As to the Company's major customers, see note 16. Certain definitions $ - United States Dollars NIS - New Israeli Shekel B. 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, for a total purchase price of $ 10,000 12,500 8,944 In October 19, 2015, the Company filed a claim for breach of contract against SuperCom Ltd., (“SuperCom”), at the Israeli Central District Court in Lod. The sum of the claim was NIS 28,862 7,397 68,163 17,469 855 During 2013, the Company reached an initial agreement, which eventually closed in February 2014, to sell its wholly owned German subsidiary, Intercard System Electronics GmbH (hereinafter – “Intercard”), for a total purchase price of EURO 700 960 2,970 2,970 The results and the cash flows of this operation for the reporting periods are presented in the statements of operations and in the statements of cash flows, respectively, as discontinued operations separately from continuing operations. For further details see notes 13 and 2V. The Company has not recorded any profit from contingent consideration pursuant to the German subsidiary divestiture as of December 31, 2015. In August 2013, the Company, through its subsidiary, Parx Ltd. entered into a share purchase agreement with a third party for the sale of 100 25 . 231 For further details see note 2V. As of December 31, 2014, the Company shut down the operation of its wholly owned subsidiary Smart Card Engineering Ltd. . 3 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Significant Accounting Policies [Abstract] | |
Significant Accounting Policies | Note 2 – Significant Accounting Policies The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The significant accounting policies followed in the preparation of the financial statements, applied on a consistent basis, are as follows: A. Financial statements in U.S. dollars Substantially all of the Company's and certain of its subsidiaries' revenues are in U.S. dollars. A significant portion of purchases of materials and components and most marketing costs are denominated in U.S. dollars. Therefore, both the functional and reporting currencies of the Company and certain of its subsidiaries are the U.S. dollar. Transactions and balances denominated in U.S. dollars are presented at their original amounts. For entities with a U.S. dollar functional currency, transactions and balances in other currencies are remeasured into U.S. dollars in accordance with the principles set forth in Accounting Standards Codification (“ASC”) Topic 830, Foreign Currency Matters, i.e. at the date the transaction is recognized, each asset, liability, or instance of revenue, expense, gain, or loss arising from the transaction is measured and recorded in the functional currency by use of the exchange rate in effect at that date. When translation using the exchange rates at the dates that the numerous revenues, expenses, gains and losses are recognized is impractical, an appropriately weighted average exchange rate for the period is used to translate those elements. At each balance sheet date, recorded balances of monetary assets and liabilities that are denominated in a currency other than the functional currency are adjusted to reflect the current exchange rate. Exchange gains and losses from the remeasurement of such items denominated in non U.S. dollar currencies are reflected in the consolidated statements of operations, among ‘financial expenses, net', as appropriate. The functional currencies of the remaining subsidiaries are their local currencies. The financial statements of those companies are translated into U.S. dollars using the exchange rate at the balance sheet date for assets and liabilities, and weighted average exchange rates for revenues and expenses (which approximates the translation of each transaction). Translation adjustments resulting from the process of the aforesaid translation are included as a separate component of equity (accumulated other comprehensive gain or loss). B. Principles of consolidation The consolidated financial statements include the financial statements of the Company, its wholly-owned subsidiaries and its majority owned subsidiaries. Intercompany transactions and balances have been eliminated in consolidation. C. Estimates and assumptions The preparation of the consolidated financial statements requires management of the Company to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the year. Such estimates include the valuation of useful lives of long-lived assets, revenue recognition, valuation of accounts receivable and allowance for doubtful accounts, valuation of inventories, legal contingencies, the assumptions used in the calculation of share based compensation, income taxes and other contingencies. Estimates and assumptions are periodically reviewed by management and the effects of any material revisions are reflected in the period that they are determined to be necessary. Actual results, however, may vary from these estimates. D. Cash equivalents Cash equivalents are short-term highly liquid investments and debt instruments that are readily convertible to cash with original maturities of three months or less from the date of purchase. Bank deposits with original maturities of more than three months, or specific deposits that are intended to be held as bank deposits for more than three months, and which will mature within one year, are classified as short-term investments. E. Trade receivables Trade receivables are recorded at the invoiced amount and do not bear interest. Collection of trade receivables are included in net cash provided by operating activities in the consolidated statements of cash flows. The consolidated financial statements include an allowance for loss from receivables for which collection is in doubt. In determining the adequacy of the allowance consideration is given to each trade receivable historical experience, aging of the receivable, adjusted to take into account current market conditions and information available about specific debtors, including their financial condition, the amount of receivables in dispute, current payment patterns, the volume of their operations, and evaluation of the security received from them or their guarantors. F. Short-term investments Short-term investments consist of: (1) Bank deposits whose maturities are longer than three months from the date of purchase, but not longer than one year from the balance sheet date. (2) Bank deposits whose maturities are less than three months from the date of purchase, but not longer than one year from the balance sheet date, and are intended to be held as bank deposits for more than three months. G. Inventories Inventories are stated at the lower of cost or market value. Cost is determined by calculating raw materials, work in process and finished products on a "moving average" basis. Inventory write-offs are provided to cover risks arising from slow moving items or technological obsolescence. Such write-offs, which were not material for the reported years, have been included in cost of revenues. The Company applies ASC Topic 330, Inventory H. Property, plant and equipment, net Property, plant and equipment are stated at cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets as follows: Years Leasehold land (over the terms of the lease, see Note 6A(1)) 49 Buildings 25 Computers, software and manufacturing equipment 3 5 Office furniture and equipment 5 16 (mainly - 10 I. Impairment of long-lived assets Long-lived assets, such as property, plant, and equipment, and intangible assets subject to amortization, are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset to be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by an asset to the carrying value of the asset. If the carrying value of the long-lived asset is not recoverable on an undiscounted cash flow basis, impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. In 2013, the Company recorded an impairment of intangible assets in the amount of $ 328 No impairment losses were recorded in 2015 and 2014. J. Goodwill and purchased intangible assets Goodwill represents the excess of the aggregate purchase price over the fair value of the net assets acquired in a purchase businesses combination. Goodwill is reviewed for impairment at least annually, as of December 31 every year. Testing for impairment is to be done at least annually and at other times if events or circumstances arise that indicate that impairment may have occurred. In 2013, the Company recorded an impairment of goodwill in the amount of $ 485 . Purchased intangible assets are carried at cost, less accumulated amortization. Amortization is computed over the estimated useful lives of the respective assets. K. Revenue recognition The Group generates revenues from product sales manufactured based on the Company's technology. In addition, the Company's generates revenues from the technology it developed through transaction fee arrangements, licensing agreements and patent litigation settlements, as part of its patent activity. Revenues are also generated from non-recurring engineering, customer services and technical support. Revenues from product sales and non-recurring engineering are recognized when delivery has occurred provided there is persuasive evidence of an agreement, the fee is fixed or determinable, collection of the related receivable is probable and no further obligations exist. In the case of non-recurring engineering, revenue is recognized upon completion of testing and approval of the customization of the product by the customer, provided that no further obligation exists. Revenues are recognized net of value added tax. License and transaction fees are recognized as earned based on actual usage. Usage is determined by receiving confirmation from the users. Patent litigation revenues are recognized upon final settlement of the litigation (see Note 15). The Company separates the settlement portion from the revenue element under the guidance of ASC Topic 605. Expenses associated directly with revenues from litigation settlement agreement that contains a license agreement are presented within ‘cost of licensing'. Revenues relating to customer services and technical support are recognized as the services are rendered ratably over the term of the related contract. In arrangements that contain multiple elements, the Company implements the guidelines set forth in Accounting Standards Update (“ASU”) 2009-13,“Multiple-Deliverable Revenue Arrangements” (“ASU 2009-13”). Such multiple element arrangements may include providing an IT solution, selling products (such as smart cards) and rendering customer services. Accordingly, the overall arrangement fee is allocated to each element (both delivered and undelivered items) based on their relative selling prices, evidenced by vendor specific objective evidence of selling price ("VSOE") or third party evidence of selling price ("TPE"). In the absence of VSOE and TPE for one or more delivered or undelivered elements in a multiple-element arrangement, the Company is required to estimate the selling prices of those elements. Such estimated selling price has been determined using a cost plus margin approach. Since the cost for each element in such arrangements is reliably estimable, the estimated selling price was calculated by multiplying the costs by an average gross margin applicable to each element. Once the standalone selling price for each element was determined, the consideration allocated to each element was recognized as revenues upon meeting the required criteria as described above. In revenue arrangements that include software components, the Company implements the guidelines set forth in ASU 2009-14. Accordingly, software revenue recognition is not applied for tangible products that contain both software and non-software components that function together to deliver the tangible product's essential functionality. The Company has applied the guidance described above for certain arrangements which include providing IT solutions, selling products and customer services that associated specifically with the SmartID Division. The total arrangement consideration is allocated proportionally to the separate deliverables in the arrangement using the estimated selling price for each component. The Company recognizes revenues from sale of its IT solutions and from certain long-term contract in accordance with ASC Topic 605-35, " Construction-Type and Production-Type Contracts Pursuant to ASC 605-35, revenues from these contracts are recognized under the percentage of completion method. The Company measures the percentage of completion based on output or input criteria, as applicable to each contract. For the reported years, the Company used in all of its projects output measures with respect to measuring the progress of completion. These measures are based on completion of milestones (i.e., contract milestones as stated in the agreement such as the delivery, installation or shipments of various deliverables) and the amount of operational sites (i.e., progress is measured as a percentage of the sites that are already operational, out of the total sites that are required to be operational under the agreement). Following the SmartID Division Divesture, revenues from such contracts are included in “net income from discontinued operations”. Revenues and costs recognized pursuant to ASC 605-35 on contracts in progress are subject to management estimates. Actual results could differ from these estimates. Licensing and transaction fees are recognized based on the volume of transactions or monthly licensing fees from systems that contain the Company's products and usually bear no cost to the Company. The cost to the Company of warranting that the product will perform according to certain specifications and that the Company will repair or replace the product if it ceases to work properly, is insignificant and is treated according to accounting guidance for contingencies. L. Research, development costs and certification costs Research and development costs, which consist mainly of labor costs, materials and subcontractors, are charged to operations as incurred. According to Accounting Standards Codification (“ASC”) Topic 350, “Intangibles - Goodwill and Other,” software that is part of a product or process to be sold to a customer shall be accounted for under ASC Subtopic 985-20. The Company's products contain embedded software which is an integral part of these products because it allows the various components of the products to communicate with each other and the products are clearly unable to function without this coding. The costs of product certification are capitalized once technological feasibility is determined. The Company determines that technological feasibility for its products is reached after all high-risk development issues have been resolved. Once the products are available for general release to the Company's customers, the Company ceases capitalizing the product certification costs and all additional costs, if any, are expensed. The capitalized product certification costs are amortized on a product-by-product basis using straight-line amortization. The amortization begins when the products are available for general release to the Company's customers. The depreciation is presented within ‘cost of revenues' in the consolidated statements of operations. M. Stock-based compensation The Company measures and recognizes compensation expense for all share-based payment awards made to employees and directors based on estimated grant date fair values. T he estimated fair value of awards is charged to income on a straight-line basis over the requisite service period, which is generally the vesting period. ASC Topic 718, Compensation – Stock Compensation The Company elected to recognize compensation cost for awards with only service conditions that have a graded vesting schedule using the straight-line method. N. Basic and diluted net loss per share Basic and diluted net loss per ordinary share is computed based on the weighted average number of ordinary shares outstanding during each year. Shares issuable for little or no cash consideration, are considered outstanding ordinary shares and included in the computation of basic net loss per ordinary share as of the date that all necessary conditions have been satisfied Outstanding stock options and warrants in the amounts of 1,880,396 2,241,421 2,066,730 O. 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, determined that the carrying amounts of cash and cash equivalents, 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 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 December 31, 2015 , the fair value of bank loans with fixed interest rates did not differ materially from the carrying amount. P. I ncome tax The Company accounts for taxes on income in accordance with ASC Topic 740, Income Taxes . Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and operating loss and tax credit carryforwards . Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the consolidated statement of operations in the period that includes the enactment date. The Company provides a valuation allowance to reduce deferred tax assets to the amount that is more likely than not to be realized. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50 percent likely of being realized. The Company accounts for interest and penalties related to unrecognized tax benefits as a component of income tax expense. Q. Non - controlling interest The Company implements ASC Topic 810, Consolidation, which requires net loss (income) attributable to non-controlling interests to be classified in the consolidated statements of operations as part of consolidated net earnings and to include the accumulated amount of non-controlling interests in the consolidated balance sheets as part of equity. If a change in ownership of a consolidated subsidiary results in loss of control and deconsolidation, any retained ownership interests are remeasured with the gain or loss reported in net earnings. If a change in ownership of a consolidated subsidiary does not result in loss of control, the Company accounts for such a decrease as an equity transaction. Therefore, no gain or loss is recognized in consolidated net income or comprehensive income. The carrying amount of the non-controlling interest is adjusted to reflect the change in its ownership interest in the subsidiary. Any difference between the fair value of the consideration received or paid and the amount by which the non-controlling interest is adjusted and recognized in equity attributable to the Company. R. Severance pay The Company's liability for severance pay for some of its Israeli employees is calculated pursuant to Israeli severance pay law based on the most recent salary of the employee The Company records the liability as if it were payable at each balance sheet date on an undiscounted basis. The liability is classified based on the expected date of settlement, and therefore is usually classified as a long-term liability, unless the termination of the employees is expected during the upcoming year. The Company's liability for those Israeli employees is partially provided for by monthly deposits for insurance policies and the remainder by an accrual. The value of these policies is recorded as an asset in the Company's balance sheet. The deposited funds include profits and losses accumulated up to the balance sheet date. The deposited funds may be withdrawn only upon the fulfillment of the obligation pursuant to Israeli Severance Pay Law or labor agreements. The value of the deposited funds is based on the cash redemption value of these policies. In addition, during 2012 the Company deposited certain amounts with a trustee, to compensate for any severance pay liability that is not covered by other funds. These deposits are restricted and may be withdrawn only for payment of severance pay liabilities. The severance pay funds and the restricted deposits for employee benefits are classified based on the classification of the corresponding liability. In respect of other Israeli employees, the Company obtained approval from the Israeli Ministry of Labor and Welfare, pursuant to the terms of Section 14 of the Israeli Severance Pay Law, 1963, according to which the current deposits with the pension fund and/or with the insurance company exempt the Company from any additional obligation to these employees for whom the said depository payments are made. These deposits are accounted as defined contribution payments. Severance pay expenses for the years ended December 31, 2015, 2014 and 2013 amounted to approximately $ 388 392 609 290 370 415 S. Advertising expenses Advertising expenses are charged to the statements of operations as incurred. Advertising expenses for the years ended December 31, 2015, 2014 and 2013 amounted to approximately $ 1,487 1,522 1,472 T. Concentrations of credit risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash equivalents, bank deposits and trade receivables. Cash equivalents are invested mainly in U.S. dollars with major banks in Israel and Europe. Management believes that the financial institutions that hold the Group's investments are financially sound and, accordingly, minimal credit risk exists with respect to these investments. Most of the Company's trade receivables are derived from sales to large and financially secure organizations. In determining the adequacy of the allowance, management bases its opinion, inter alia, on the estimated risks, current market conditions, in reliance on available information with respect to the debtor's financial position. As for major customers, see note 16. The activity in the allowance for doubtful accounts for the years ended December 31, 2015 , 2014 and 2013 is as follows: 2015 2014 2013 Allowance for doubtful accounts at beginning of year $ 671 $ 610 $ 431 Additions charged to allowance for doubtful accounts 138 88 220 Write-downs charged against the allowance (31 ) (27 ) (41 ) Allowance for doubtful accounts at end of year $ 778 $ 671 $ 610 U. Commitments and contingencies Liabilities for loss contingencies arising from claims, assessments, litigations, fines and penalties and other sources are recognized when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. Gain contingencies are recognized only when final settlement is reached. V. Business divestures As described in Note 1B, the Company sold certain operations during 2013 and 2014. Upon reaching a definitive agreement with an acquirer, the Company recognizes the consideration received from the divesture, less all assets and liabilities sold, as a gain or loss. Discontinued operations Upon divesture of a business, the Company classifies such business as a discontinued operation, if the divested business meets the following criteria: (i) The business qualifies as a component of an entity, as it comprises operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the Company. (ii) Both of the following conditions are met or expected to be met within one year: 1) The operations and cash flows of the business have been or will be eliminated from the ongoing operations of the entity in the disposal transaction; and 2) The Company will not have any significant continuing involvement in the operations of the component after the disposal transaction. The eligibility to receive contingent consideration from future sales of the divested business does not necessarily indicate that there is continuing involvement in the operations of the business. For disposals other than by sale such as abandonment, the results of operations of a business would not be recorded as a discontinued operation until the period in which the business is actually abandoned. The Company has concluded that at December 31, 2013, the SmartID Division Divesture and the German Subsidiary Divesture qualify as discontinued operations and therefore have been presented as such. The sale of PARX France and the shutdown of Smart Card Engineering (see note 1B(3) and 1B(4)) do not qualify as a discontinued operations as the Company has significant involvement after the disposal transaction. The results of businesses that have qualified at December 31, 2013 as discontinued operations have been presented as such for all reporting periods. Results of discontinued operations include all revenues and expenses directly derived from such businesses; general corporate overhead is not allocated to discontinued operations. Any loss or gain that arose from the divesture of a business that qualifies as discontinued operations has been included within the results of the discontinued operations. The Company also presents cash flows from discontinued operations separately from cash flows of continuing operations. Starting from January 2015, the Company implements 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. Contingent consideration The Company's sale arrangements consist of contingent consideration based on the divested businesses future sales or profits. The Company records the contingent consideration portion of the arrangement when the consideration is determined to be realizable. W. Patent litigation and maintenance expenses Patent litigation and maintenance expenses, which consist mainly of salaries and consultants' fees, are expensed as incurred. The Company presents such expenses, excluding expenses associated directly with revenues from a litigation settlement agreement that contains a license agreement, as a separate item within its operating expenses because it believes that such presentation improves the understandability of the statement of operations. Expenses associated directly with revenues from a litigation settlement agreement that contains a license agreement are presented within ‘cost of licensing' as mentioned in Note 2K. Z. Recent accounting pronouncements On May 28, 2014, the Financial Accounting Standards Board (“FASB”) issued ASU (“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, 2018. Early application will be permitted starting January 1, 2017. The ASU 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. In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern.” The ASU is intended to define management's responsibility to evaluate whether there is substantial doubt about an organization's ability to continue as a going concern and to provide related footnote disclosures. The amendments in this ASU are effective for reporting periods beginning after December 15, 2016, with early adoption permitted. The Company is currently assessing the impact the adoption of ASU 2014-15 will have on its ongoing financial reporting. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330), Simplifying the Measurement of Inventory (ASU 2015-11), which changes the measurement principle for inventory from the lower of cost or market to lower of cost and net realizable value. Net realizable value is defined as the “estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation.” ASU 2015-11 eliminates the guidance that entities consider replacement cost or net realizable value less an approximately normal profit margin in the subsequent measurement of inventory when cost is determined on a first-in, first-out or average cost basis. The provisions of ASU 2015-11 are effective for public entities with fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Early adoption is permitted. The Company currently does not expect that adoption of ASU 2015-17 to have a material impact on its consolidated financial statements. In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic740) Balance Sheet Classification of Deferred Taxes, which will require that the presentation of deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The amendments in this update are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Earlier application is permitted for all entities as of the beginning of an interim or annual reporting period. The Company currently believes that adoption of ASU 2015-17 is not expected to have a material impact on its consolidated financial statements. In February 2016, the FASB issued authoritative guidance which requires lessees to recognize on the balance sheet assets and liabilities for leases with lease terms of more than 12 months. Consistent with current GAAP, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. However, unlike current GAAP—which requires on |
Short-term investments
Short-term investments | 12 Months Ended |
Dec. 31, 2015 | |
Short-term investments [Abstract] | |
Short-term investments | Note 3 – Short-term investments: Balances at December 31, 2015 and 2014 consist of bank deposits which bear weighted average annual interest of 0.59% 0.49 See note 9C as to restrictions on certain deposits. |
Other Receivables and Prepaid E
Other Receivables and Prepaid Expenses | 12 Months Ended |
Dec. 31, 2015 | |
Other Receivables and Prepaid Expenses [Abstract] | |
Other Receivables and Prepaid Expenses | Note 4 - Other Receivables and Prepaid Expenses December 31 2015 2014 Government institutions $ 463 $ 452 Prepaid expenses 624 690 Receivables under contractual obligations to be transferred to others * 533 695 Other receivables 563 693 $ 2,183 $ 2,530 * The Company's subsidiary in Poland is required to collect certain fees that are to be transferred to local authorities. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2015 | |
Inventories [Abstract] | |
Inventories | Note 5 - Inventories December 31 2015 2014 Raw materials $ 944 $ 884 Work in progress 174 552 Finished products 2,212 2,267 $ 3,330 $ 3,703 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment, Net [Abstract] | |
Property, Plant and Equipment, Net | Note 6 - Property, Plant and Equipment, Net A. Consist of: December 31 2015 2014 Cost Leasehold land (1) $ 272 $ 272 Buildings on leasehold land (1) 4,357 4,355 Buildings 790 1,055 Computers, software and manufacturing equipment 16,124 15,567 Office furniture and equipment 793 825 Motor vehicles 318 355 Total cost 22,654 22,429 Total accumulated depreciation 13,986 13,195 $ 8,668 $ 9,234 (1) The leasehold land consists of two plots owned by the Israel Lands Administration. Rights to leasehold land on the first plot extend over the original period of 49 B. C. 1,251 1,307 1,135 |
Other Current Liabilities
Other Current Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Other Current Liabilities [Abstract] | |
Other Current Liabilities | Note 7 - Other Current Liabilities December 31 December 31 2015 2014 Employees and related expenses $ 1,065 $ 1,175 Accrued expenses 1,101 902 Customer advances 283 244 Other current liabilities 275 335 $ 2,724 $ 2,656 |
Bank Loans
Bank Loans | 12 Months Ended |
Dec. 31, 2015 | |
Bank Loans [Abstract] | |
Bank Loans | Note 8 - Bank Loans A. Composition of long-term loans: December 31 December 31 2015 2014 Long-term loans $ 3,395 $ 2,996 Less - current maturities 1,036 835 $ 2,359 $ 2,161 As of December 31, 2015, the bank loans are denominated in the following currencies: U.S. dollars ($ 351 354 625 2,065 3.15 9.75 B. Repayment dates of long-term loans subsequent to December 31, 2015 : 2016 $ 1,036 2017 797 2018 632 2019 579 2020 70 Thereafter 281 $ 3,395 C. December 31 December 31 2015 2014 2015 2014 % % Interest rate In NIS 4.35 4.67 $ 693 $ 778 In U.S. Dollars 4.92 5.03 1,357 1,159 In Polish Zloty 3.15 3.60 729 845 2,779 2,782 Current maturities of long-term loans 1,036 835 $ 3,815 $ 3,617 The weighted average interest rate of the short-term bank credit for the years ended December 31, 2015 and 2014 were 4.35 4.5 D. E. 4,256 2,779 F (i) total liquid deposits will not be less than $6,000 at any time; (ii) beginning 2015, the annual operational profit on an EBITDA basis will not be less than $1,000; (iii) annual revenues will not be less than $20,000; and (iv) for 2015: equity at a level of 28% of the total assets and equity sum of no less than $10,500, for 2016 and onwards: equity at a level of 30% of the total assets and equity sum of no less than $11,000. 2,399 510 As of December 31, 2015, the Company was not in compliance with certain covenants signed with the Bank. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies [Abstract] | |
Commitments And Contingencies | Note 9 - Commitments and Contingencies A. Commitme nts and Contingencies: The Company and its Israeli subsidiary, EasyPark, have entered into several research and development agreements, pursuant to which the Company and EasyPark received grants from the Government of Israel, and are therefore obligated to pay royalties to the Government of Israel at a rate of 3.5 3,500 Royalties expenses amounted to $ 356 406 330 B. Leases The Group operates from leased facilities in the United States, Israel, Poland and South Africa, leased for periods expiring in years 2016 through 2019. Minimum future rentals of premises under non-cancelable operating lease agreements at rates in effect as of December 31, 2015 are as follows: 2016 $ 239 2017 156 2018 156 2019 156 2020 - $ 707 Rent expenses amounted to $ 368 382 425 C. Li ens Th e Company's and certain subsidiaries' have recorded floating charges on all of its tangible assets in favor of banks. The Company's and certain subsidiaries' manufacturing facilities and certain equipment have been pledged as security in respect of a loan received from a bank. The Company's short-term deposits in the amount of $ 2,254 . D. Guarantees As of December 31, 2015, the Company granted performance guarantees and guarantees to secure customer advances in the sum of $ 723 The expiration dates of the guarantees range from February 2016 to January 2017. E . Legal claims 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 Euro 1,500 1,830 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 1,220 . On October 19, 2015, the Company filed a claim for breach of contract against SuperCom, at the Israeli Central District Court in Lod. The sum of the claim was NIS 28,862 7,397 68,163 17,469 |
Equity
Equity | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Equity | Note 10 - Equity A. Share capital On November 28, 2014, the Company closed a firm commitment underwritten public offering of 7,187,500 1.6 10,444 B. Stock option plans In February 2001, Board approved an additional option plan, under which up to 75,000 During the years 2002 to 2012, 13,125,000 shares options to be reserved under the Company's share option plan. On 2,500,000 to be reserved under the Company's share option plan. On June 17, 2014, the Board approved a further increase of 750,000 to be reserved under the Company's share option plan . The vesting period for the options ranges from immediate vesting to ratable vesting over a four five The fair value of each option granted to employees during 2015, 2014 and 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 2. Risk-free interest rate of, 1.21 1.32 0.79 1.05 0.57 1.02 3. 2.5 4 4. Expected average volatility of 69 70.7 64 67 59 70 The Company's options activity during 2015 (including options to non-employees) and information as to options outstanding and options exercisable as of December 31, 2014 and 2015 are summarized in the following table: Number of Weighted options average exercise outstanding price per share Outstanding – December 31, 2014 1,923,833 $ 2.09 Options granted 465,000 1.01 Options expired or forfeited (787,454 ) 2.24 Outstanding – December 31, 2015 1,601,379 $ 1.71 Exercisable as of: December 31, 2014 697,003 $ 1.9 December 31, 2015 799,473 $ 1.85 The weighted average grant date fair value of options granted is $ 1.01 1.09 1.26 The aggregate intrinsic value of outstanding options at December 31, 2015 is approximately $ 8 8 The following table summarizes information about options outstanding and exercisable (including options to non-employees) as of December 31, 2015: Options outstanding Options Exercisable Number Weighted Number Weighted outstanding average Weighted Outstanding average Weighted as of remaining Average As of remaining Average Range of December 31, contractual Exercise December 31, contractual Exercise exercise price 2015 life (years) Price 2015 life (years) Price $ 0.03 18,000 0.34 $ 0.03 18,000 0.34 $ 0.03 0.74 - 0.90 418,148 4.22 0.78 65,000 2.33 0.90 1.08 - 1.29 148,000 1.43 1.11 138,000 1.21 1.09 1.46 105,000 2.33 1.46 66,666 2.19 1.46 1.67 - 1.76 140,000 2.68 1.68 55,000 0.85 1.68 2.32 - 2.37 710,009 2.60 2.35 446,807 2.20 2.34 $ 3.03 - 3.18 62,222 2.58 $ 3.08 10,000 3.73 $ 3.03 1,601,379 1.71 799,473 1.93 The total exercise date intrinsic value of options exercised during the years ended December 31, 2015, 2014 and 2013, was approximately $ 0 1,096 1,199 As of December 31, 2015, there was approximately $ 465 1.6 586 During 2015, 2014 and 2013, the Company recorded share-based compensation expenses in the amount of $ 463 875 364 C. Warrants 1. During 2012, the Company issued 90,361 five 2. During 2015, 18,071 3. The number of warrants issued by the Company during the year ended December 31, 2011, as part of its offering of shares from 2011, were 260,869 3.75 The following table summarizes information about warrants outstanding and exercisable as of December 31, 2015: Warrants outstanding Warrants Exercisable Number Weighted Number Weighted outstanding average Outstanding average as of remaining As of remaining Range of December 31, contractual December 31, contractual exercise price 2015 life (years) 2015 life (years) $ - 56,648 0.93 20,500 0.36 $3.75 260,869 0.11 260,869 0.11 317,517 0.25 281,369 0.13 D. Decrease in the ownership rate During 2015 the ownership rate (the both direct and indirect ownership rate) of the Company in its subsidiaries, PARX Ltd. and Easy Park Ltd., decreased to 90.7 85.5 1,228 |
Supplemental statement of opera
Supplemental statement of operations data | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental statement of operations data [Abstract] | |
Supplemental statement of operations data | Note 11 – Supplemental statement of operations data A. Other expenses (income), net Consists of : Year ended Year ended Year ended December 31 2015 2014 2013 (Gain) loss from sale and shut down of a subsidiary (see note 1B(3) and 1B(4)) $ - $ (3 ) 231 (Gain) loss on sale of property and equipment, net (4 ) (10 ) 91 Termination of employment agreements (1) 578 - (4,503 ) Consulting fees 340 - - Other expenses (income), net $ 914 $ (13 ) (4,181 ) 1 During 2015, the Company recorded compensation expenses related to the termination of employment of the Company's former Chief Executive Officer and related to the termination of employment of the Company's former Chief Executive Officer of the U.S. subsidiary. During 2012 4,719 The above amount was in addition to $ 2,854 On July 12, 2013, the Company signed settlement agreement with those former executives with respect to their termination of employment with the Company and its subsidiaries. Based on the agreements, besides the release of existing severance payments funds, the Company paid to the former executives approximately $ 2,500 4,503 B. Impairment of goodwill and intangible assets During 2013, the Company recorded an impairment of certain intangible assets relating to the Parking segment, which were recorded following acquisition of businesses. The impairment charge totaled $ 328 485 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes [Abstract] | |
Income Taxes | Note 12 - Income Taxes A. The Company and its Israeli subsidiaries 1. Measurement of taxable income under the Income Tax (Inflationary Adjustments) Law, 1985 The Company and one 2. Tax benefits under the Law for the Encouragement of Capital Investments, 1959 The Company maintains three investment programs in buildings, equipment and production facilities, which have been granted the status of “Approved Enterprise” under the Law for the Encouragement of Capital Investments, 1959. The Company elected to adopt the “Alternative Benefits Program” status. This status entitles the Company (due to its location in Israel) to an exemption from taxes on income derived there-from for a period of 10 years starting in the year in which the Company first generates taxable income, but not later than 14 years from the date of approval (the last of which was received in February 2000) or 12 years from commencement of operations. The tax-exempt profits that are earned by the Company's “Approved Enterprises” can be distributed to shareholders, without additional tax liability on the Company only upon its complete liquidation. As of December 31, 2015, the Company is no longer entitled of such exemption from taxes since the period of 14 years from the date of approval expired. As the Company has not yet reported any taxable income, the Company did not use any benefit as “Approved Enterprise” through December 31, 2015. 3. The Law for the Encouragement of Industry (taxes), 1969 The Company believes that it qualifies as an “Industrial Company” under the Law for the Encouragement of Industry. The principal tax benefits for the Company are the deductibility of costs in connection with public offerings and amortization of certain intangibles. 4. Tax rates Presented hereunder are the tax rates relevant to the Company in the years 2013-2015 2014-2015 – 26.5 2013 - 25 Current taxes for the reported periods are calculated according to the tax rates presented above. On January 4, 2016, the statutory tax rate was changed to 25 The deferred tax balances as at December 31, 2015 were calculated according to the tax rates specified in the Law for Changes in National Priorities, at the tax rate expected to apply on the date of reversal, based on rates that are enacted at that date. If the reduction in the corporate tax rate was enacted before December 31, 2015, there would have been no change in the deferred tax assets, net of valuation allowance, and in the deferred tax liabilities. The effect of the change on the financial statements as at December 31, 2013 is reflected in an increase in the deferred tax asset in the amount of $ 2,394 B. Non-Israeli subsidiaries are taxed based on the income tax laws in their country of residence. C. Deferred income taxes: December 31 December 31 2015 2014 Deferred tax assets: Net operating loss carryforwards $ 51,120 $ 48,720 Other 1,311 1,777 Total gross deferred tax assets 52,431 50,497 Less – valuation allowance (52,431 ) (50,450 ) Net deferred tax assets $ - $ 47 Deferred tax liability - Other (352 ) (302 ) Net deferred tax liability $ (352 ) $ (302 ) The net changes in the total valuation allowance for each of the years ended December 31, 2015, 2014 and 2013, are comprised as follows: Year ended December 31 2015 2014 2013 Balance at beginning of year $ 50,450 $ 42,691 $ 42,002 Additions during the year from Continuing operations 2,181 2,349 1,654 Changes due to amendments to tax laws and applicable future tax rates, see note 12A(4) - - 2,394 Discontinued operations - Smart ID Division, see note 1B(1) (201 ) 5,405 (3,402 ) Other changes 1 5 43 Balance at end of year $ 52,431 $ 50,450 $ 42,691 In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets depends on the generation of future taxable income during the periods in which those temporary differences or carry forwards are deductible. Based on the level of historical taxable losses, management has reduced the deferred tax assets with a valuation allowance to the amount it believes is more likely than to be realized. D. As of December 31, 188,489 3,747 30 3,091 533 93 E. The Company has not recognized a deferred tax liability for the undistributed earnings of its foreign subsidiaries that arose in 2015 and prior years, because the Company considers these earnings to be indefinitely reinvested. A deferred tax liability will be recognized when the Company can no longer demonstrate that it plans to indefinitely reinvest these undistributed earnings. As of December 31, 2015, the undistributed earnings of these foreign subsidiaries were approximately $ 3,292 F. No current or Year ended December 31 2015 2014 2013 Current $ - $ (2 ) $ (265 ) Deferred (122 ) (108 ) 62 Income tax expense $ (122 ) $ (110 ) $ (203 ) Income tax expense for the years ended December 31, 2015, 2014 and 2013, differed from the amounts computed by applying the Israeli statutory tax rates of 26.5 26.5 25 Year ended December 31 2015 2014 2013 Computed “expected” income tax benefit $ 2,087 $ 2,673 $ 1,681 Decrease in income tax benefit resulting from: Change in valuation allowance, net (2,181 ) (2,349 ) (1,654 ) Non-deductible stock-based compensation related to options issued to employees (123 ) (232 ) (91 ) Other non-deductible expenses (96 ) (113 ) (43 ) Other 191 (89 ) (96 ) Reported income tax expense $ (122 ) $ (110 ) $ (203 ) G. Income (loss) from continuing operations before taxes on income consists of the following: Year ended December 31 2015 2014 2013 Israel $ (8,187 ) $ (10,434 ) $ (8,842 ) Non-Israel 313 347 2,117 $ (7,874 ) $ (10,087 ) $ (6,725 ) H. Unrecognized tax benefits As of December 31, 2015, 2014 and 2013, the Company did not have any unrecognized tax benefits. In addition, the Company does not expect that the amount of unrecognized tax benefits will change significantly within the next twelve months. For the years ended December 31, 2015, 2014 and 2013, no interest and penalties related to unrecognized tax benefits have been accrued. The Company and its major subsidiaries file income tax returns in Israel, Poland and South Africa. With few exceptions, the income tax returns of the Company and its major subsidiaries are open to examination by the Israeli and the respective foreign tax authorities for the tax years beginning in 2010. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations [Abstract] | |
Discontinued Operations | Note 1 3 – Discontinued operations As described in Notes 1B(1) and 1B(2), the Company divested its interest in the SmartID division and its interest in the German subsidiary, and presented these activities as discontinued operations. During 2013, the total gain from the SmartID Division Divesture, net of transaction costs and offset by the impairment charge of the German subsidiary assets amounted to $ 5,974 848 1,013 343 336 Set forth below are the results of the discontinued operations: Year ended December 31 2015 2014 2013 Revenues $ - $ 1,131 $ 16,034 Expenses (91 ) (1,822 ) (18,231 ) Other income, net 848 1,006 5,974 Net income from discontinued operations $ 757 $ 315 $ 3,777 |
Related Party Balances and Tran
Related Party Balances and Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Balances And Transactions [Abstract] | |
Related Party Balances And Transactions | Note 14 - Related Party Balances and Transactions Transactions 2015 2014 2013 Costs and expenses* $ - $ - $ 13 * Cost and expenses relate to services provided to the Company by related parties. Balances As of December 31, 2015 and 2014 the Company has no related party balances. |
Operating Segments
Operating Segments | 12 Months Ended |
Dec. 31, 2015 | |
Operating Segments [Abstract] | |
Operating Segments | Note 15 - Operating segments In view of how the Company's chief operating decision maker (“CODM”) reviews operating results for the purposes of allocating resources and assessing performance, the Company currently reports three segments which are the Group's strategic business units: Retail and Mass Transit Ticketing, Petroleum and Parking. The following summary describes the operations in each of the Group's operating segments: • Petroleum - includes manufacturing and selling of fuel payment and management solutions. The Company's solution is a wireless, cashless, cardless and paperless refueling tracking and payment solution, providing customers with maximum flexibility and security. • Retail and Mass Transit Ticketing - includes selling and marketing variety of products for cashless payment solutions for the retail market and mass transit ticketing. • Parking - includes selling of products and managing cashless parking solutions. The Company's parking solution is a fully integrated parking fee collection and parking management solution. 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. Year ended December 31, 2015 Petroleum Retail and Parking Other Consolidated Revenues 4,386 11,510 (**) 1,389 2,576 19,861 Reportable segment gross profit * 2,353 6,482 894 1,190 10,919 Reconciliation of reportable segment Depreciation (745 ) Stock based compensation (34 ) Gross profit for the period $ 10,140 Year ended December 31, 2014 Petroleum Retail and Parking Other Consolidated Revenues 3,838 15,042 2,392 1,790 23,062 Reportable segment gross profit * 2,213 7,143 1,543 939 11,838 Reconciliation of reportable segment Depreciation and amortization (747 ) Stock based compensation (35 ) Gross profit for the year $ 11,056 2013 Petroleum Retail and Parking Other Consolidated Revenues 4,532 11,743 2,210 1,383 19,868 Reportable segment gross profit * 2,694 6,469 1,366 808 11,337 Reconciliation of reportable segment Depreciation (577 ) Stock based compensation (32 ) Gross profit for the period $ 10,728 * Gross profit as reviewed by the CODM, represents gross profit, adjusted to exclude depreciation and stock based compensation. ** The revenues from retail and mass transit ticketing segment for the year ended December 31, 2015 include revenues derived from a litigation settlement with perpetual license agreement. Those revenues are presented within revenues from ‘licensing and transaction fees' in the statements of operations. |
Geographic Information and Majo
Geographic Information and Major Customers | 12 Months Ended |
Dec. 31, 2015 | |
Geographic Information and Major Customers [Abstract] | |
Geographic Information and Major Customers | Note 16 - Geographic Information and Major Customers The data is presented in accordance with ASC Topic 280, " Disclosures About Segments of an Enterprise and Related Information. 2015 2014 2013 Revenues by geographical areas from external customers Americas $ 8,044 $ 8,868 $ 6,856 Asia 500 1,077 99 Africa 3,970 3,865 4,073 Europe 6,100 7,486 7,060 Total export 18,614 21,296 18,088 Domestic (Israel) 1,247 1,766 1,780 $ 19,861 $ 23,062 $ 19,868 December 31 December 31 2015 2014 Long lived assets by geographical areas Domestic (Israel) $ 2,415 $ 2,656 Poland 5,379 5,406 South Africa 796 1,061 America 78 111 $ 8,668 $ 9,234 Major Customers Year ended December 31 2015 2014 2013 % % % Major Customers by percentage from total revenues Customer A (*) 15 % 22 % 19 % Customer B (*) 15 % 14 % 15 % (*) The revenues derives from the both customers are presented within the revenues from the Retail and Mass Transit Ticketing. |
Significant Accounting Polici25
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Significant Accounting Policies [Abstract] | |
Financial Statements in U.S. dollars | A. Financial statements in U.S. dollars Substantially all of the Company's and certain of its subsidiaries' revenues are in U.S. dollars. A significant portion of purchases of materials and components and most marketing costs are denominated in U.S. dollars. Therefore, both the functional and reporting currencies of the Company and certain of its subsidiaries are the U.S. dollar. Transactions and balances denominated in U.S. dollars are presented at their original amounts. For entities with a U.S. dollar functional currency, transactions and balances in other currencies are remeasured into U.S. dollars in accordance with the principles set forth in Accounting Standards Codification (“ASC”) Topic 830, Foreign Currency Matters, i.e. at the date the transaction is recognized, each asset, liability, or instance of revenue, expense, gain, or loss arising from the transaction is measured and recorded in the functional currency by use of the exchange rate in effect at that date. When translation using the exchange rates at the dates that the numerous revenues, expenses, gains and losses are recognized is impractical, an appropriately weighted average exchange rate for the period is used to translate those elements. At each balance sheet date, recorded balances of monetary assets and liabilities that are denominated in a currency other than the functional currency are adjusted to reflect the current exchange rate. Exchange gains and losses from the remeasurement of such items denominated in non U.S. dollar currencies are reflected in the consolidated statements of operations, among ‘financial expenses, net', as appropriate. The functional currencies of the remaining subsidiaries are their local currencies. The financial statements of those companies are translated into U.S. dollars using the exchange rate at the balance sheet date for assets and liabilities, and weighted average exchange rates for revenues and expenses (which approximates the translation of each transaction). Translation adjustments resulting from the process of the aforesaid translation are included as a separate component of equity (accumulated other comprehensive gain or loss). |
Principles of consolidation | B. Principles of consolidation The consolidated financial statements include the financial statements of the Company, its wholly-owned subsidiaries and its majority owned subsidiaries. Intercompany transactions and balances have been eliminated in consolidation. |
Estimates and assumptions | C. Estimates and assumptions The preparation of the consolidated financial statements requires management of the Company to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the year. Such estimates include the valuation of useful lives of long-lived assets, revenue recognition, valuation of accounts receivable and allowance for doubtful accounts, valuation of inventories, legal contingencies, the assumptions used in the calculation of share based compensation, income taxes and other contingencies. Estimates and assumptions are periodically reviewed by management and the effects of any material revisions are reflected in the period that they are determined to be necessary. Actual results, however, may vary from these estimates. |
Cash equivalents | D. Cash equivalents Cash equivalents are short-term highly liquid investments and debt instruments that are readily convertible to cash with original maturities of three months or less from the date of purchase. Bank deposits with original maturities of more than three months, or specific deposits that are intended to be held as bank deposits for more than three months, and which will mature within one year, are classified as short-term investments. |
Trade receivables | E. Trade receivables Trade receivables are recorded at the invoiced amount and do not bear interest. Collection of trade receivables are included in net cash provided by operating activities in the consolidated statements of cash flows. The consolidated financial statements include an allowance for loss from receivables for which collection is in doubt. In determining the adequacy of the allowance consideration is given to each trade receivable historical experience, aging of the receivable, adjusted to take into account current market conditions and information available about specific debtors, including their financial condition, the amount of receivables in dispute, current payment patterns, the volume of their operations, and evaluation of the security received from them or their guarantors. |
Short-term investments | F. Short-term investments Short-term investments consist of: (1) Bank deposits whose maturities are longer than three months from the date of purchase, but not longer than one year from the balance sheet date. (2) Bank deposits whose maturities are less than three months from the date of purchase, but not longer than one year from the balance sheet date, and are intended to be held as bank deposits for more than three months. |
Inventories | G. Inventories Inventories are stated at the lower of cost or market value. Cost is determined by calculating raw materials, work in process and finished products on a "moving average" basis. Inventory write-offs are provided to cover risks arising from slow moving items or technological obsolescence. Such write-offs, which were not material for the reported years, have been included in cost of revenues. The Company applies ASC Topic 330, Inventory |
Property, plant and equipment, net | H. Property, plant and equipment, net Property, plant and equipment are stated at cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets as follows: Years Leasehold land (over the terms of the lease, see Note 6A(1)) 49 Buildings 25 Computers, software and manufacturing equipment 3 5 Office furniture and equipment 5 16 (mainly - 10 |
Impairment of long-lived assets | I. Impairment of long-lived assets Long-lived assets, such as property, plant, and equipment, and intangible assets subject to amortization, are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset to be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by an asset to the carrying value of the asset. If the carrying value of the long-lived asset is not recoverable on an undiscounted cash flow basis, impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. In 2013, the Company recorded an impairment of intangible assets in the amount of $ 328 No impairment losses were recorded in 2015 and 2014. |
Goodwill and purchased intangible assets | J. Goodwill and purchased intangible assets Goodwill represents the excess of the aggregate purchase price over the fair value of the net assets acquired in a purchase businesses combination. Goodwill is reviewed for impairment at least annually, as of December 31 every year. Testing for impairment is to be done at least annually and at other times if events or circumstances arise that indicate that impairment may have occurred. In 2013, the Company recorded an impairment of goodwill in the amount of $ 485 . Purchased intangible assets are carried at cost, less accumulated amortization. Amortization is computed over the estimated useful lives of the respective assets. |
Revenue recognition | K. Revenue recognition The Group generates revenues from product sales manufactured based on the Company's technology. In addition, the Company's generates revenues from the technology it developed through transaction fee arrangements, licensing agreements and patent litigation settlements, as part of its patent activity. Revenues are also generated from non-recurring engineering, customer services and technical support. Revenues from product sales and non-recurring engineering are recognized when delivery has occurred provided there is persuasive evidence of an agreement, the fee is fixed or determinable, collection of the related receivable is probable and no further obligations exist. In the case of non-recurring engineering, revenue is recognized upon completion of testing and approval of the customization of the product by the customer, provided that no further obligation exists. Revenues are recognized net of value added tax. License and transaction fees are recognized as earned based on actual usage. Usage is determined by receiving confirmation from the users. Patent litigation revenues are recognized upon final settlement of the litigation (see Note 15). The Company separates the settlement portion from the revenue element under the guidance of ASC Topic 605. Expenses associated directly with revenues from litigation settlement agreement that contains a license agreement are presented within ‘cost of licensing'. Revenues relating to customer services and technical support are recognized as the services are rendered ratably over the term of the related contract. In arrangements that contain multiple elements, the Company implements the guidelines set forth in Accounting Standards Update (“ASU”) 2009-13,“Multiple-Deliverable Revenue Arrangements” (“ASU 2009-13”). Such multiple element arrangements may include providing an IT solution, selling products (such as smart cards) and rendering customer services. Accordingly, the overall arrangement fee is allocated to each element (both delivered and undelivered items) based on their relative selling prices, evidenced by vendor specific objective evidence of selling price ("VSOE") or third party evidence of selling price ("TPE"). In the absence of VSOE and TPE for one or more delivered or undelivered elements in a multiple-element arrangement, the Company is required to estimate the selling prices of those elements. Such estimated selling price has been determined using a cost plus margin approach. Since the cost for each element in such arrangements is reliably estimable, the estimated selling price was calculated by multiplying the costs by an average gross margin applicable to each element. Once the standalone selling price for each element was determined, the consideration allocated to each element was recognized as revenues upon meeting the required criteria as described above. In revenue arrangements that include software components, the Company implements the guidelines set forth in ASU 2009-14. Accordingly, software revenue recognition is not applied for tangible products that contain both software and non-software components that function together to deliver the tangible product's essential functionality. The Company has applied the guidance described above for certain arrangements which include providing IT solutions, selling products and customer services that associated specifically with the SmartID Division. The total arrangement consideration is allocated proportionally to the separate deliverables in the arrangement using the estimated selling price for each component. The Company recognizes revenues from sale of its IT solutions and from certain long-term contract in accordance with ASC Topic 605-35, " Construction-Type and Production-Type Contracts Pursuant to ASC 605-35, revenues from these contracts are recognized under the percentage of completion method. The Company measures the percentage of completion based on output or input criteria, as applicable to each contract. For the reported years, the Company used in all of its projects output measures with respect to measuring the progress of completion. These measures are based on completion of milestones (i.e., contract milestones as stated in the agreement such as the delivery, installation or shipments of various deliverables) and the amount of operational sites (i.e., progress is measured as a percentage of the sites that are already operational, out of the total sites that are required to be operational under the agreement). Following the SmartID Division Divesture, revenues from such contracts are included in “net income from discontinued operations”. Revenues and costs recognized pursuant to ASC 605-35 on contracts in progress are subject to management estimates. Actual results could differ from these estimates. Licensing and transaction fees are recognized based on the volume of transactions or monthly licensing fees from systems that contain the Company's products and usually bear no cost to the Company. The cost to the Company of warranting that the product will perform according to certain specifications and that the Company will repair or replace the product if it ceases to work properly, is insignificant and is treated according to accounting guidance for contingencies. |
Research and development costs | L. Research, development costs and certification costs Research and development costs, which consist mainly of labor costs, materials and subcontractors, are charged to operations as incurred. According to Accounting Standards Codification (“ASC”) Topic 350, “Intangibles - Goodwill and Other,” software that is part of a product or process to be sold to a customer shall be accounted for under ASC Subtopic 985-20. The Company's products contain embedded software which is an integral part of these products because it allows the various components of the products to communicate with each other and the products are clearly unable to function without this coding. The costs of product certification are capitalized once technological feasibility is determined. The Company determines that technological feasibility for its products is reached after all high-risk development issues have been resolved. Once the products are available for general release to the Company's customers, the Company ceases capitalizing the product certification costs and all additional costs, if any, are expensed. The capitalized product certification costs are amortized on a product-by-product basis using straight-line amortization. The amortization begins when the products are available for general release to the Company's customers. The depreciation is presented within ‘cost of revenues' in the consolidated statements of operations. |
Stock-based compensation | M. Stock-based compensation The Company measures and recognizes compensation expense for all share-based payment awards made to employees and directors based on estimated grant date fair values. T he estimated fair value of awards is charged to income on a straight-line basis over the requisite service period, which is generally the vesting period. ASC Topic 718, Compensation – Stock Compensation The Company elected to recognize compensation cost for awards with only service conditions that have a graded vesting schedule using the straight-line method. |
Basic and diluted net loss per share | N. Basic and diluted net loss per share Basic and diluted net loss per ordinary share is computed based on the weighted average number of ordinary shares outstanding during each year. Shares issuable for little or no cash consideration, are considered outstanding ordinary shares and included in the computation of basic net loss per ordinary share as of the date that all necessary conditions have been satisfied Outstanding stock options and warrants in the amounts of 1,880,396 2,241,421 2,066,730 |
Fair value of financial instruments | O. 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, determined that the carrying amounts of cash and cash equivalents, 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 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 December 31, 2015 , the fair value of bank loans with fixed interest rates did not differ materially from the carrying amount. |
Income tax | P. I ncome tax The Company accounts for taxes on income in accordance with ASC Topic 740, Income Taxes . Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and operating loss and tax credit carryforwards . Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the consolidated statement of operations in the period that includes the enactment date. The Company provides a valuation allowance to reduce deferred tax assets to the amount that is more likely than not to be realized. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50 percent likely of being realized. The Company accounts for interest and penalties related to unrecognized tax benefits as a component of income tax expense. |
Non-controlling interest | Q. Non - controlling interest The Company implements ASC Topic 810, Consolidation, which requires net loss (income) attributable to non-controlling interests to be classified in the consolidated statements of operations as part of consolidated net earnings and to include the accumulated amount of non-controlling interests in the consolidated balance sheets as part of equity. If a change in ownership of a consolidated subsidiary results in loss of control and deconsolidation, any retained ownership interests are remeasured with the gain or loss reported in net earnings. If a change in ownership of a consolidated subsidiary does not result in loss of control, the Company accounts for such a decrease as an equity transaction. Therefore, no gain or loss is recognized in consolidated net income or comprehensive income. The carrying amount of the non-controlling interest is adjusted to reflect the change in its ownership interest in the subsidiary. Any difference between the fair value of the consideration received or paid and the amount by which the non-controlling interest is adjusted and recognized in equity attributable to the Company. |
Severance pay | R. Severance pay The Company's liability for severance pay for some of its Israeli employees is calculated pursuant to Israeli severance pay law based on the most recent salary of the employee The Company records the liability as if it were payable at each balance sheet date on an undiscounted basis. The liability is classified based on the expected date of settlement, and therefore is usually classified as a long-term liability, unless the termination of the employees is expected during the upcoming year. The Company's liability for those Israeli employees is partially provided for by monthly deposits for insurance policies and the remainder by an accrual. The value of these policies is recorded as an asset in the Company's balance sheet. The deposited funds include profits and losses accumulated up to the balance sheet date. The deposited funds may be withdrawn only upon the fulfillment of the obligation pursuant to Israeli Severance Pay Law or labor agreements. The value of the deposited funds is based on the cash redemption value of these policies. In addition, during 2012 the Company deposited certain amounts with a trustee, to compensate for any severance pay liability that is not covered by other funds. These deposits are restricted and may be withdrawn only for payment of severance pay liabilities. The severance pay funds and the restricted deposits for employee benefits are classified based on the classification of the corresponding liability. In respect of other Israeli employees, the Company obtained approval from the Israeli Ministry of Labor and Welfare, pursuant to the terms of Section 14 of the Israeli Severance Pay Law, 1963, according to which the current deposits with the pension fund and/or with the insurance company exempt the Company from any additional obligation to these employees for whom the said depository payments are made. These deposits are accounted as defined contribution payments. Severance pay expenses for the years ended December 31, 2015, 2014 and 2013 amounted to approximately $ 388 392 609 290 370 415 |
Advertising expenses | S. Advertising expenses Advertising expenses are charged to the statements of operations as incurred. Advertising expenses for the years ended December 31, 2015, 2014 and 2013 amounted to approximately $ 1,487 1,522 1,472 |
Concentrations of credit risk | T. Concentrations of credit risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash equivalents, bank deposits and trade receivables. Cash equivalents are invested mainly in U.S. dollars with major banks in Israel and Europe. Management believes that the financial institutions that hold the Group's investments are financially sound and, accordingly, minimal credit risk exists with respect to these investments. Most of the Company's trade receivables are derived from sales to large and financially secure organizations. In determining the adequacy of the allowance, management bases its opinion, inter alia, on the estimated risks, current market conditions, in reliance on available information with respect to the debtor's financial position. As for major customers, see note 16. The activity in the allowance for doubtful accounts for the years ended December 31, 2015 , 2014 and 2013 is as follows: 2015 2014 2013 Allowance for doubtful accounts at beginning of year $ 671 $ 610 $ 431 Additions charged to allowance for doubtful accounts 138 88 220 Write-downs charged against the allowance (31 ) (27 ) (41 ) Allowance for doubtful accounts at end of year $ 778 $ 671 $ 610 |
Commitments and contingencies | U. Commitments and contingencies Liabilities for loss contingencies arising from claims, assessments, litigations, fines and penalties and other sources are recognized when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. Gain contingencies are recognized only when final settlement is reached. |
Business divestitures | V. Business divestures As described in Note 1B, the Company sold certain operations during 2013 and 2014. Upon reaching a definitive agreement with an acquirer, the Company recognizes the consideration received from the divesture, less all assets and liabilities sold, as a gain or loss. Discontinued operations Upon divesture of a business, the Company classifies such business as a discontinued operation, if the divested business meets the following criteria: (i) The business qualifies as a component of an entity, as it comprises operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the Company. (ii) Both of the following conditions are met or expected to be met within one year: 1) The operations and cash flows of the business have been or will be eliminated from the ongoing operations of the entity in the disposal transaction; and 2) The Company will not have any significant continuing involvement in the operations of the component after the disposal transaction. The eligibility to receive contingent consideration from future sales of the divested business does not necessarily indicate that there is continuing involvement in the operations of the business. For disposals other than by sale such as abandonment, the results of operations of a business would not be recorded as a discontinued operation until the period in which the business is actually abandoned. The Company has concluded that at December 31, 2013, the SmartID Division Divesture and the German Subsidiary Divesture qualify as discontinued operations and therefore have been presented as such. The sale of PARX France and the shutdown of Smart Card Engineering (see note 1B(3) and 1B(4)) do not qualify as a discontinued operations as the Company has significant involvement after the disposal transaction. The results of businesses that have qualified at December 31, 2013 as discontinued operations have been presented as such for all reporting periods. Results of discontinued operations include all revenues and expenses directly derived from such businesses; general corporate overhead is not allocated to discontinued operations. Any loss or gain that arose from the divesture of a business that qualifies as discontinued operations has been included within the results of the discontinued operations. The Company also presents cash flows from discontinued operations separately from cash flows of continuing operations. Starting from January 2015, the Company implements 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. Contingent consideration The Company's sale arrangements consist of contingent consideration based on the divested businesses future sales or profits. The Company records the contingent consideration portion of the arrangement when the consideration is determined to be realizable. |
Patent litigation and maintenance expenses | W. Patent litigation and maintenance expenses Patent litigation and maintenance expenses, which consist mainly of salaries and consultants' fees, are expensed as incurred. The Company presents such expenses, excluding expenses associated directly with revenues from a litigation settlement agreement that contains a license agreement, as a separate item within its operating expenses because it believes that such presentation improves the understandability of the statement of operations. Expenses associated directly with revenues from a litigation settlement agreement that contains a license agreement are presented within ‘cost of licensing' as mentioned in Note 2K. |
Recent accounting pronouncements | Z. Recent accounting pronouncements On May 28, 2014, the Financial Accounting Standards Board (“FASB”) issued ASU (“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, 2018. Early application will be permitted starting January 1, 2017. The ASU 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. In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern.” The ASU is intended to define management's responsibility to evaluate whether there is substantial doubt about an organization's ability to continue as a going concern and to provide related footnote disclosures. The amendments in this ASU are effective for reporting periods beginning after December 15, 2016, with early adoption permitted. The Company is currently assessing the impact the adoption of ASU 2014-15 will have on its ongoing financial reporting. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330), Simplifying the Measurement of Inventory (ASU 2015-11), which changes the measurement principle for inventory from the lower of cost or market to lower of cost and net realizable value. Net realizable value is defined as the “estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation.” ASU 2015-11 eliminates the guidance that entities consider replacement cost or net realizable value less an approximately normal profit margin in the subsequent measurement of inventory when cost is determined on a first-in, first-out or average cost basis. The provisions of ASU 2015-11 are effective for public entities with fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Early adoption is permitted. The Company currently does not expect that adoption of ASU 2015-17 to have a material impact on its consolidated financial statements. In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic740) Balance Sheet Classification of Deferred Taxes, which will require that the presentation of deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The amendments in this update are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Earlier application is permitted for all entities as of the beginning of an interim or annual reporting period. The Company currently believes that adoption of ASU 2015-17 is not expected to have a material impact on its consolidated financial statements. In February 2016, the FASB issued authoritative guidance which requires lessees to recognize on the balance sheet assets and liabilities for leases with lease terms of more than 12 months. Consistent with current GAAP, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. However, unlike current GAAP—which requires only capital leases to be recognized on the balance sheet—the new guidance will require both types of leases to be recognized on the balance sheet. The guidance will take effect for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. This guidance shall be applied at the beginning of the earliest period presented using the modified retrospective approach, which includes a number of practical expedients that an entity may elect to apply. Early application of the guidance is permitted. The Company is evaluating the adoption of this guidance and the potential effects on the consolidated financial statements. |
Significant Accounting Polici26
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Significant Accounting Policies [Abstract] | |
Schedule of the Useful Lives for Property, Plant and Equipment | Years Leasehold land (over the terms of the lease, see Note 6A(1)) 49 Buildings 25 Computers, software and manufacturing equipment 3 5 Office furniture and equipment 5 16 (mainly - 10 |
Schedule of Allowance for Doubtful Accounts Receivable | 2015 2014 2013 Allowance for doubtful accounts at beginning of year $ 671 $ 610 $ 431 Additions charged to allowance for doubtful accounts 138 88 220 Write-downs charged against the allowance (31 ) (27 ) (41 ) Allowance for doubtful accounts at end of year $ 778 $ 671 $ 610 |
Other Receivables and Prepaid27
Other Receivables and Prepaid Expenses (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Receivables and Prepaid Expenses [Abstract] | |
Schedule of Other Receivables and Prepaid Expenses | December 31 2015 2014 Government institutions $ 463 $ 452 Prepaid expenses 624 690 Receivables under contractual obligations to be transferred to others * 533 695 Other receivables 563 693 $ 2,183 $ 2,530 * The Company's subsidiary in Poland is required to collect certain fees that are to be transferred to local authorities. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Inventories [Abstract] | |
Schedule of Inventory | December 31 2015 2014 Raw materials $ 944 $ 884 Work in progress 174 552 Finished products 2,212 2,267 $ 3,330 $ 3,703 |
Property, Plant and Equipment29
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment, Net [Abstract] | |
Schedule of Property, Plant and Equipment | December 31 2015 2014 Cost Leasehold land (1) $ 272 $ 272 Buildings on leasehold land (1) 4,357 4,355 Buildings 790 1,055 Computers, software and manufacturing equipment 16,124 15,567 Office furniture and equipment 793 825 Motor vehicles 318 355 Total cost 22,654 22,429 Total accumulated depreciation 13,986 13,195 $ 8,668 $ 9,234 (1) The leasehold land consists of two plots owned by the Israel Lands Administration. Rights to leasehold land on the first plot extend over the original period of 49 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Current Liabilities [Abstract] | |
Summary of Other Current Liabilities | December 31 December 31 2015 2014 Employees and related expenses $ 1,065 $ 1,175 Accrued expenses 1,101 902 Customer advances 283 244 Other current liabilities 275 335 $ 2,724 $ 2,656 |
Bank Loans (Tables)
Bank Loans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Bank Loans [Abstract] | |
Schedule of Long-term Loans | December 31 December 31 2015 2014 Long-term loans $ 3,395 $ 2,996 Less - current maturities 1,036 835 $ 2,359 $ 2,161 |
Summary of Future Long-term Debt Repayments | 2016 $ 1,036 2017 797 2018 632 2019 579 2020 70 Thereafter 281 $ 3,395 |
Schedule of Short-term Loans, Bank Credit, and Current Maturities of Long-term Debt | December 31 December 31 2015 2014 2015 2014 % % Interest rate In NIS 4.35 4.67 $ 693 $ 778 In U.S. Dollars 4.92 5.03 1,357 1,159 In Polish Zloty 3.15 3.60 729 845 2,779 2,782 Current maturities of long-term loans 1,036 835 $ 3,815 $ 3,617 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies [Abstract] | |
Schedule of Future Minimum Operating Lease Payments | 2016 $ 239 2017 156 2018 156 2019 156 2020 - $ 707 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Schedule of Stock Option Activity | Number of Weighted options average exercise outstanding price per share Outstanding – December 31, 2014 1,923,833 $ 2.09 Options granted 465,000 1.01 Options expired or forfeited (787,454 ) 2.24 Outstanding – December 31, 2015 1,601,379 $ 1.71 Exercisable as of: December 31, 2014 697,003 $ 1.9 December 31, 2015 799,473 $ 1.85 |
Summary of Options Outstanding and Exercisable | Options outstanding Options Exercisable Number Weighted Number Weighted outstanding average Weighted Outstanding average Weighted as of remaining Average As of remaining Average Range of December 31, contractual Exercise December 31, contractual Exercise exercise price 2015 life (years) Price 2015 life (years) Price $ 0.03 18,000 0.34 $ 0.03 18,000 0.34 $ 0.03 0.74 - 0.90 418,148 4.22 0.78 65,000 2.33 0.90 1.08 - 1.29 148,000 1.43 1.11 138,000 1.21 1.09 1.46 105,000 2.33 1.46 66,666 2.19 1.46 1.67 - 1.76 140,000 2.68 1.68 55,000 0.85 1.68 2.32 - 2.37 710,009 2.60 2.35 446,807 2.20 2.34 $ 3.03 - 3.18 62,222 2.58 $ 3.08 10,000 3.73 $ 3.03 1,601,379 1.71 799,473 1.93 |
Schedule of Warrants Outstanding and Exercisable | Warrants outstanding Warrants Exercisable Number Weighted Number Weighted outstanding average Outstanding average as of remaining As of remaining Range of December 31, contractual December 31, contractual exercise price 2015 life (years) 2015 life (years) $ - 56,648 0.93 20,500 0.36 $3.75 260,869 0.11 260,869 0.11 317,517 0.25 281,369 0.13 |
Supplemental statement of ope34
Supplemental statement of operations data (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental statement of operations data [Abstract] | |
Schedule of Other Operating Expenses (Income), Net | Year ended Year ended Year ended December 31 2015 2014 2013 (Gain) loss from sale and shut down of a subsidiary (see note 1B(3) and 1B(4)) $ - $ (3 ) 231 (Gain) loss on sale of property and equipment, net (4 ) (10 ) 91 Termination of employment agreements (1) 578 - (4,503 ) Consulting fees 340 - - Other expenses (income), net $ 914 $ (13 ) (4,181 ) 1 During 2015, the Company recorded compensation expenses related to the termination of employment of the Company's former Chief Executive Officer and related to the termination of employment of the Company's former Chief Executive Officer of the U.S. subsidiary. During 2012 4,719 The above amount was in addition to $ 2,854 On July 12, 2013, the Company signed settlement agreement with those former executives with respect to their termination of employment with the Company and its subsidiaries. Based on the agreements, besides the release of existing severance payments funds, the Company paid to the former executives approximately $ 2,500 4,503 B. Impairment of goodwill and intangible assets During 2013, the Company recorded an impairment of certain intangible assets relating to the Parking segment, which were recorded following acquisition of businesses. The impairment charge totaled $ 328 485 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes [Abstract] | |
Schedule of Deferred Tax Assets and Liabilities | December 31 December 31 2015 2014 Deferred tax assets: Net operating loss carryforwards $ 51,120 $ 48,720 Other 1,311 1,777 Total gross deferred tax assets 52,431 50,497 Less – valuation allowance (52,431 ) (50,450 ) Net deferred tax assets $ - $ 47 Deferred tax liability - Other (352 ) (302 ) Net deferred tax liability $ (352 ) $ (302 ) |
Summary of Change in Valuation Allowance | Year ended December 31 2015 2014 2013 Balance at beginning of year $ 50,450 $ 42,691 $ 42,002 Additions during the year from Continuing operations 2,181 2,349 1,654 Changes due to amendments to tax laws and applicable future tax rates, see note 12A(4) - - 2,394 Discontinued operations - Smart ID Division, see note 1B(1) (201 ) 5,405 (3,402 ) Other changes 1 5 43 Balance at end of year $ 52,431 $ 50,450 $ 42,691 |
Schedule of Income Tax Expense Components | Year ended December 31 2015 2014 2013 Current $ - $ (2 ) $ (265 ) Deferred (122 ) (108 ) 62 Income tax expense $ (122 ) $ (110 ) $ (203 ) |
Reconciliation of Income Tax Expense | Year ended December 31 2015 2014 2013 Computed “expected” income tax benefit $ 2,087 $ 2,673 $ 1,681 Decrease in income tax benefit resulting from: Change in valuation allowance, net (2,181 ) (2,349 ) (1,654 ) Non-deductible stock-based compensation related to options issued to employees (123 ) (232 ) (91 ) Other non-deductible expenses (96 ) (113 ) (43 ) Other 191 (89 ) (96 ) Reported income tax expense $ (122 ) $ (110 ) $ (203 ) |
Schedule of Income (Loss) before Taxes on Income | Year ended December 31 2015 2014 2013 Israel $ (8,187 ) $ (10,434 ) $ (8,842 ) Non-Israel 313 347 2,117 $ (7,874 ) $ (10,087 ) $ (6,725 ) |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations [Abstract] | |
Schedule of Results of Discontinued Operations | Year ended December 31 2015 2014 2013 Revenues $ - $ 1,131 $ 16,034 Expenses (91 ) (1,822 ) (18,231 ) Other income, net 848 1,006 5,974 Net income from discontinued operations $ 757 $ 315 $ 3,777 |
Related Party Balances and Tr37
Related Party Balances and Transactions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Balances And Transactions [Abstract] | |
Schedule of Related Party Transactions | 2015 2014 2013 Costs and expenses* $ - $ - $ 13 * Cost and expenses relate to services provided to the Company by related parties. |
Operating Segments (Tables)
Operating Segments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Operating Segments [Abstract] | |
Reconciliation of Segment Information to Consolidated Financial Information | Year ended December 31, 2015 Petroleum Retail and Parking Other Consolidated Revenues 4,386 11,510 (**) 1,389 2,576 19,861 Reportable segment gross profit * 2,353 6,482 894 1,190 10,919 Reconciliation of reportable segment Depreciation (745 ) Stock based compensation (34 ) Gross profit for the period $ 10,140 Year ended December 31, 2014 Petroleum Retail and Parking Other Consolidated Revenues 3,838 15,042 2,392 1,790 23,062 Reportable segment gross profit * 2,213 7,143 1,543 939 11,838 Reconciliation of reportable segment Depreciation and amortization (747 ) Stock based compensation (35 ) Gross profit for the year $ 11,056 2013 Petroleum Retail and Parking Other Consolidated Revenues 4,532 11,743 2,210 1,383 19,868 Reportable segment gross profit * 2,694 6,469 1,366 808 11,337 Reconciliation of reportable segment Depreciation (577 ) Stock based compensation (32 ) Gross profit for the period $ 10,728 * Gross profit as reviewed by the CODM, represents gross profit, adjusted to exclude depreciation and stock based compensation. ** The revenues from retail and mass transit ticketing segment for the year ended December 31, 2015 include revenues derived from a litigation settlement with perpetual license agreement. Those revenues are presented within revenues from ‘licensing and transaction fees' in the statements of operations. |
Geographic Information and Ma39
Geographic Information and Major Customers (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Geographic Information and Major Customers [Abstract] | |
Schedule of Revenues from External Customers by Geographical Area | 2015 2014 2013 Revenues by geographical areas from external customers Americas $ 8,044 $ 8,868 $ 6,856 Asia 500 1,077 99 Africa 3,970 3,865 4,073 Europe 6,100 7,486 7,060 Total export 18,614 21,296 18,088 Domestic (Israel) 1,247 1,766 1,780 $ 19,861 $ 23,062 $ 19,868 |
Schedule of Long-lived Assets by Geographical Area | December 31 December 31 2015 2014 Long lived assets by geographical areas Domestic (Israel) $ 2,415 $ 2,656 Poland 5,379 5,406 South Africa 796 1,061 America 78 111 $ 8,668 $ 9,234 |
Schedule of Major Customers by Percentage of Revenue | Year ended December 31 2015 2014 2013 % % % Major Customers by percentage from total revenues Customer A (*) 15 % 22 % 19 % Customer B (*) 15 % 14 % 15 % (*) The revenues derives from the both customers are presented within the revenues from the Retail and Mass Transit Ticketing. |
General (Divestiture of Operati
General (Divestiture of Operations) (Details) € in Thousands, ₪ in Thousands, $ in Thousands | Feb. 21, 2016USD ($) | Dec. 24, 2015USD ($) | Dec. 24, 2015ILS (₪) | Oct. 19, 2015USD ($) | Oct. 19, 2015ILS (₪) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2013EUR (€) |
General [Abstract] | |||||||||
Proceeds from divestiture of operations | $ 10,000 | ||||||||
Deferred performance-based revenue | 12,500 | ||||||||
Gain (loss) from divestiture | $ (7) | 8,944 | |||||||
Profit from contingent consideration | $ 848 | 1,013 | |||||||
Proceeds from sale of subsidiary | 960 | € 700 | |||||||
Impairment of disposal group assets | $ 2,970 | ||||||||
Cost from divesture of business, including transaction cost | 343 | ||||||||
Gain from divesture of business | 336 | ||||||||
Percentage of future subsidiary profits receivable as consideration for the sale of subsidiary shares | 25.00% | 25.00% | |||||||
Gain (loss) on sale of subsidiary shares | $ 3 | $ (231) | |||||||
SuperCom Breach of Contract [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Lawsuit, damages sought | $ 17,469 | ₪ 68,163 | $ (7,397) | ₪ (28,862) | |||||
SuperCom Breach of Contract [Member] | Subsequent Event [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Lawsuit, damages awarded | $ 855 |
Significant Accounting Polici41
Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Significant Accounting Policies [Abstract] | |||
Impairment of intangible assets | $ 328 | ||
Impairment of goodwill | $ 485 | ||
Anti-dilutive stock options and warrants | 1,880,396 | 2,241,421 | 2,066,730 |
Severance pay expense | $ 388 | $ 392 | $ 609 |
Defined contribution plan expense | 290 | 370 | 415 |
Advertising expense | $ 1,487 | $ 1,522 | $ 1,472 |
Significant Accounting Polici42
Significant Accounting Policies (Schedule of Property Plant and Equipment Estimated Useful Lives) (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Leasehold land [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 49 years |
Buildings [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 25 years |
Office furniture and equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 10 years |
Minimum [Member] | Office furniture and equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Minimum [Member] | Computers, software and manufacturing equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Maximum [Member] | Office furniture and equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 16 years |
Maximum [Member] | Computers, software and manufacturing equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Significant Accounting Polici43
Significant Accounting Policies (Schedule of Allowance For Doubtful Accounts Receivable) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Significant Accounting Policies [Abstract] | |||
Allowance for doubtful accounts at beginning of year | $ 671 | $ 610 | $ 431 |
Additions charged to allowance for doubtful accounts | 138 | 88 | 220 |
Write-downs charged against the allowance | (31) | (27) | (41) |
Allowance for doubtful accounts at end of year | $ 778 | $ 671 | $ 610 |
Short term investments (Narrati
Short term investments (Narrative) (Details) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Bank Deposits [Member] | Weighted Average [Member] | ||
Net Investment Income [Line Items] | ||
Investment, interest rate | 0.59% | 0.49% |
Other Receivables and Prepaid45
Other Receivables and Prepaid Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Other Receivables and Prepaid Expenses [Abstract] | |||
Government institutions | $ 463 | $ 452 | |
Prepaid expenses | 624 | 690 | |
Receivables under contractual obligations to be transferred to others | [1] | 533 | 695 |
Other receivables | 563 | 693 | |
Total other receivables and prepaid expenses | $ 2,183 | $ 2,530 | |
[1] | The Company's subsidiary in Poland is required to collect certain fees that are to be transferred to local authorities. |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Inventories [Abstract] | ||
Raw materials | $ 944 | $ 884 |
Work in progress | 174 | 552 |
Finished products | 2,212 | 2,267 |
Inventories | $ 3,330 | $ 3,703 |
Property, Plant and Equipment47
Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Property, Plant and Equipment, Net [Abstract] | ||||
Depreciation expense | $ 1,251 | $ 1,307 | $ 1,135 | |
Property, Plant and Equipment [Line Items] | ||||
Cost | 22,654 | 22,429 | ||
Total accumulated depreciation | 13,986 | 13,195 | ||
Net cost | 8,668 | 9,234 | ||
Leasehold land [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Cost | [1] | $ 272 | 272 | |
Estimated useful life | 49 years | |||
Buildings on leasehold land [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Cost | [1] | $ 4,357 | 4,355 | |
Buildings [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Cost | $ 790 | 1,055 | ||
Estimated useful life | 25 years | |||
Computers, software and manufacturing equipment [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Cost | $ 16,124 | 15,567 | ||
Office furniture and equipment [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Cost | $ 793 | 825 | ||
Estimated useful life | 10 years | |||
Motor vehicles [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Cost | $ 318 | $ 355 | ||
[1] | The leasehold land consists of two plots owned by the Israel Lands Administration. Rights to leasehold land on the first plot extend over the original period of 49 years ending in the year 2041 with an option to extend for an additional 49 years, and on the second plot for a period of 49 years, which will end in the year 2047 with an option to extend for a further 49 years. The amount includes payments on account of land development and payments of the capitalization of leasing payments. The rent for the initial 49-year term of each of these leases was prepaid in its entirety at the beginning of the lease terms as is customary in Israel for leases of property for industrial purposes from the Israel Lands Administration. |
Other Current Liabilities (Deta
Other Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Other Current Liabilities [Abstract] | ||
Employees and related expenses | $ 1,065 | $ 1,175 |
Accrued expenses | 1,101 | 902 |
Customer advances | 283 | 244 |
Other current liabilities | 275 | 335 |
Total other current liabilities | $ 2,724 | $ 2,656 |
Bank Loans (Narrative) (Details
Bank Loans (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Bank Loans [Abstract] | ||
Credit lines authorized | $ 4,256 | |
Credit lines used | 2,779 | |
Debt Instrument [Line Items] | ||
Long-term loans | $ 3,395 | $ 2,996 |
Minimum interest rate | 3.15% | |
Maximum interest rate | 9.75% | |
Bank Leumi L'Israel Ltd. Loan [Member] | ||
Debt Instrument [Line Items] | ||
Loan amount | $ 2,399 | |
Long-term loans | $ 510 | |
Financial and restrictive covenant with Bank Leumi L'Israel Ltd. (the "Bank"), Compliance | As of December 31, 2015, the Company was not in compliance with certain covenants signed with the Bank. | |
Financial and restrictive covenant with Bank Leumi L'Israel Ltd. (the "Bank"), Description | (i) total liquid deposits will not be less than $6,000 at any time; (ii) beginning 2015, the annual operational profit on an EBITDA basis will not be less than $1,000; (iii) annual revenues will not be less than $20,000; and (iv) for 2015: equity at a level of 28% of the total assets and equity sum of no less than $10,500, for 2016 and onwards: equity at a level of 30% of the total assets and equity sum of no less than $11,000. | (i) total liquid deposits will not be less than $6,000 at any time; (ii) beginning 2015, the annual operational profit on an EBITDA basis will not be less than $1,000; (iii) annual revenues will not be less than $20,000; and (iv) for 2015: equity at a level of 28% of the total assets and equity sum of no less than $10,500, for 2016 and onwards: equity at a level of 30% of the total assets and equity sum of no less than $11,000. |
U.S. Dollars [Member] | ||
Debt Instrument [Line Items] | ||
Long-term loans | $ 351 | |
Beginning maturity range | Jan. 1, 2016 | |
Ending maturity range | Dec. 31, 2019 | |
NIS [Member] | ||
Debt Instrument [Line Items] | ||
Long-term loans | $ 354 | |
Beginning maturity range | Jan. 1, 2016 | |
Ending maturity range | Dec. 31, 2019 | |
ZAR [Member] | ||
Debt Instrument [Line Items] | ||
Long-term loans | $ 625 | |
Beginning maturity range | Jan. 1, 2016 | |
Ending maturity range | Dec. 31, 2023 | |
Polish Zloty [Member] | ||
Debt Instrument [Line Items] | ||
Long-term loans | $ 2,065 | |
Beginning maturity range | Jan. 1, 2016 | |
Ending maturity range | Dec. 31, 2019 |
Bank Loans (Schedule of Long-te
Bank Loans (Schedule of Long-term Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Bank Loans [Abstract] | ||
Total long-term loans | $ 3,395 | $ 2,996 |
Less - current maturities | 1,036 | 835 |
Long-term loans, net of current maturities | $ 2,359 | $ 2,161 |
Bank Loans (Summary of Repaymen
Bank Loans (Summary of Repayments of Long-term Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Bank Loans [Abstract] | ||
2,016 | $ 1,036 | |
2,017 | 797 | |
2,018 | 632 | |
2,019 | 579 | |
2,020 | 70 | |
Thereafter | 281 | |
Total long-term loans | $ 3,395 | $ 2,996 |
Bank Loans (Schedule of Short-t
Bank Loans (Schedule of Short-term Loans, Bank Credit, and Current Maturities) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Short-term Debt [Line Items] | ||
Interest rate | 4.35% | 4.50% |
Short-term loans and bank credit | $ 2,779 | $ 2,782 |
Current maturities of long-term loans | 1,036 | 835 |
Total short-term loans, bank credit and current maturities of long-term loans | $ 3,815 | $ 3,617 |
NIS [Member] | ||
Short-term Debt [Line Items] | ||
Interest rate | 4.35% | 4.67% |
Short-term loans and bank credit | $ 693 | $ 778 |
U.S. Dollars [Member] | ||
Short-term Debt [Line Items] | ||
Interest rate | 4.92% | 5.03% |
Short-term loans and bank credit | $ 1,357 | $ 1,159 |
Polish Zloty [Member] | ||
Short-term Debt [Line Items] | ||
Interest rate | 3.15% | 3.60% |
Short-term loans and bank credit | $ 729 | $ 845 |
Commitments and Contingencies53
Commitments and Contingencies (Contingencies) (Details) € in Thousands, ₪ in Thousands, $ in Thousands | Dec. 24, 2015USD ($) | Dec. 24, 2015ILS (₪) | Oct. 19, 2015USD ($) | Oct. 19, 2015ILS (₪) | Jul. 31, 2014USD ($) | Jul. 31, 2014ILS (₪) | Oct. 31, 2013USD ($) | Oct. 31, 2013EUR (€) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Commitments and Contingencies [Abstract] | |||||||||||
Percentage of sales paid as royalties | 3.50% | ||||||||||
Grants received, net of royalties paid | $ 3,500 | ||||||||||
Royalties included in cost of revenue | 356 | $ 406 | $ 330 | ||||||||
Collateral amount | 2,254 | ||||||||||
Guarantees to third parties | $ 723 | ||||||||||
French Company [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Lawsuit, damages sought | $ 1,830 | € 1,500 | |||||||||
Former Employee Two [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Lawsuit, damages sought | $ 1,220 | ₪ 4,744 | |||||||||
SuperCom Breach of Contract [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Lawsuit, damages sought | $ 17,469 | ₪ 68,163 | $ (7,397) | ₪ (28,862) |
Commitments and Contingencies54
Commitments and Contingencies (Leases) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Commitments and Contingencies [Abstract] | |||
Rent expense | $ 368 | $ 382 | $ 425 |
Minimum future rentals: | |||
2,016 | 239 | ||
2,017 | 156 | ||
2,018 | 156 | ||
2,019 | 156 | ||
Total | $ 707 | ||
2,020 |
Equity (Share Capital) (Details
Equity (Share Capital) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Nov. 28, 2014 | |
Equity [Abstract] | ||||
Number of shares issued | 7,187,500 | |||
Offering price per share | $ 1.6 | |||
Proceeds from issuance of common stock, net of issuance costs | $ 10,444 |
Equity (Stock Option Plans) (Na
Equity (Stock Option Plans) (Narrative) (Details) - ₪ / shares | Jun. 17, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2010 | Dec. 31, 2001 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares authorized | 75,000 | |||||
Additional shares authorized | 750,000 | 2,500,000 | 13,125,000 | |||
Ordinary shares, par value | ₪ 0.1 | ₪ 0.1 | ||||
Stock Option Plans Fair Value Assumptions | ||||||
Dividend yield | 0.00% | 0.00% | 0.00% | |||
Minimum [Member] | ||||||
Stock Option Plans Fair Value Assumptions | ||||||
Risk-free interest rate | 1.21% | 0.79% | 0.57% | |||
Expected life | 2 years 6 months | 2 years 6 months | 2 years 6 months | |||
Expected volatility | 69.00% | 64.00% | 59.00% | |||
Maximum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 4 years | |||||
Expiration period | 5 years | |||||
Stock Option Plans Fair Value Assumptions | ||||||
Risk-free interest rate | 1.32% | 1.05% | 1.02% | |||
Expected life | 4 years | 4 years | 4 years | |||
Expected volatility | 70.70% | 67.00% | 70.00% |
Equity (Schedule of Stock Optio
Equity (Schedule of Stock Options Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Number of options outstanding | |||
Outstanding | 1,923,833 | ||
Granted | 465,000 | ||
Expired or forfeited | (787,454) | ||
Outstanding | 1,601,379 | 1,923,833 | |
Exercisable | 799,473 | 697,003 | |
Weighted average exercise price per share | |||
Outstanding | $ 2.09 | ||
Granted | 1.01 | ||
Expired or forfeited | 2.24 | ||
Outstanding | 1.71 | $ 2.09 | |
Exercisable | $ 1.85 | $ 1.9 | |
Aggregate intrinsic value | |||
Outstanding | $ 8 | ||
Exercisable | 8 | ||
Exercised, exercise date | $ 0 | $ 1,096 | $ 1,199 |
Weighted average grant date fair value of options granted | $ 1.01 | $ 1.09 | $ 1.26 |
Unrecognized compensation cost | $ 465 | ||
Unrecognized compensation cost, period for recognition | 1 year 7 months 6 days | ||
Fair value of options vested | $ 586 | ||
Share-based compensation expense | $ 463 | $ 875 | $ 364 |
Equity (Schedule of Options Out
Equity (Schedule of Options Outstanding and Exercisable by Exercise Price) (Details) | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Options outstanding | |
Number outstanding | shares | 1,601,379 |
Weighted average remaining contractual life | 1 year 8 months 16 days |
Options exercisable | |
Number outstanding | shares | 799,473 |
Weighted average remainging cotractual life | 1 year 11 months 5 days |
$0.03 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Lower limit | $ 0.03 |
Upper limit | $ 0.03 |
Options outstanding | |
Number outstanding | shares | 18,000 |
Weighted average remaining contractual life | 4 months 2 days |
Weighted average exercise price | $ 0.03 |
Options exercisable | |
Number outstanding | shares | 18,000 |
Weighted average remainging cotractual life | 4 months 2 days |
Weighted average exercise price | $ 0.03 |
$0.74 - $0.90 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Lower limit | 0.74 |
Upper limit | $ 0.90 |
Options outstanding | |
Number outstanding | shares | 418,148 |
Weighted average remaining contractual life | 4 years 2 months 19 days |
Weighted average exercise price | $ 0.78 |
Options exercisable | |
Number outstanding | shares | 65,000 |
Weighted average remainging cotractual life | 2 years 3 months 29 days |
Weighted average exercise price | $ 0.90 |
$1.08 - $1.29 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Lower limit | 1.08 |
Upper limit | $ 1.29 |
Options outstanding | |
Number outstanding | shares | 148,000 |
Weighted average remaining contractual life | 1 year 5 months 5 days |
Weighted average exercise price | $ 1.11 |
Options exercisable | |
Number outstanding | shares | 138,000 |
Weighted average remainging cotractual life | 1 year 2 months 16 days |
Weighted average exercise price | $ 1.09 |
$1.46 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Lower limit | 1.46 |
Upper limit | $ 1.46 |
Options outstanding | |
Number outstanding | shares | 105,000 |
Weighted average remaining contractual life | 2 years 3 months 29 days |
Weighted average exercise price | $ 1.46 |
Options exercisable | |
Number outstanding | shares | 66,666 |
Weighted average remainging cotractual life | 2 years 2 months 8 days |
Weighted average exercise price | $ 1.46 |
$1.67 - $1.76 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Lower limit | 1.67 |
Upper limit | $ 1.76 |
Options outstanding | |
Number outstanding | shares | 140,000 |
Weighted average remaining contractual life | 2 years 8 months 5 days |
Weighted average exercise price | $ 1.68 |
Options exercisable | |
Number outstanding | shares | 55,000 |
Weighted average remainging cotractual life | 10 months 6 days |
Weighted average exercise price | $ 1.68 |
$2.32 - $2.37 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Lower limit | 2.32 |
Upper limit | $ 2.37 |
Options outstanding | |
Number outstanding | shares | 710,009 |
Weighted average remaining contractual life | 2 years 7 months 6 days |
Weighted average exercise price | $ 2.35 |
Options exercisable | |
Number outstanding | shares | 446,807 |
Weighted average remainging cotractual life | 2 years 2 months 12 days |
Weighted average exercise price | $ 2.34 |
$3.03 - $3.18 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Lower limit | 3.03 |
Upper limit | $ 3.18 |
Options outstanding | |
Number outstanding | shares | 62,222 |
Weighted average remaining contractual life | 2 years 6 months 29 days |
Weighted average exercise price | $ 3.08 |
Options exercisable | |
Number outstanding | shares | 10,000 |
Weighted average remainging cotractual life | 3 years 8 months 23 days |
Weighted average exercise price | $ 3.03 |
Equity (Issuance of Warrants) (
Equity (Issuance of Warrants) (Details) - $ / shares | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2011 | |
Equity [Abstract] | ||||
Warrants issued | 90,361 | 260,869 | ||
Vesting period of warrants | 5 years | |||
Warrants exercised | 18,071 | 36,142 | ||
Exercise price per share | $ 3.75 | |||
Warrants outstanding | ||||
Number outstanding | 317,517 | |||
Weighted average remaining contractual life | 3 months | |||
Warrants exercisable | ||||
Number outstanding | 281,369 | |||
Weighted average remaining contractual life | 1 month 17 days | |||
$0.00 [Member] | ||||
Warrants outstanding | ||||
Number outstanding | 56,648 | |||
Weighted average remaining contractual life | 11 months 5 days | |||
Warrants exercisable | ||||
Number outstanding | 20,500 | |||
Weighted average remaining contractual life | 4 months 10 days | |||
$3.75 [Member] | ||||
Warrants outstanding | ||||
Number outstanding | 260,869 | |||
Weighted average remaining contractual life | 1 month 10 days | |||
Warrants exercisable | ||||
Number outstanding | 260,869 | |||
Weighted average remaining contractual life | 1 month 10 days |
Equity (Decrease In the Ownersh
Equity (Decrease In the Ownership Rate) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($) | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Decrease in the ownership rate in subsidiaries | [1] | |
Additional paid-in capital [Member] | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Decrease in the ownership rate in subsidiaries | $ 1,228 | [1] |
Non-controlling interest [Member] | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Decrease in the ownership rate in subsidiaries | $ (1,228) | [1] |
PARX Ltd. [Member] | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Decrease in the ownership rate percentage in subsidiaries | 90.70% | |
Easy Park Ltd. [Member] | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Decrease in the ownership rate percentage in subsidiaries | 85.50% | |
Subsidiaries [Member] | Additional paid-in capital [Member] | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Decrease in the ownership rate in subsidiaries | $ 1,228 | |
Subsidiaries [Member] | Non-controlling interest [Member] | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Decrease in the ownership rate in subsidiaries | $ (1,228) | |
[1] | See Note 10D. |
Supplemental statement of ope61
Supplemental statement of operations data (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Supplemental statement of operations data [Abstract] | ||||
(Gain) loss from sale and shut down of a subsidiary (see note 1B(3) and 1B(4)) | $ (3) | $ 231 | ||
(Gain) loss on sale of property and equipment, net | $ (4) | $ (10) | 91 | |
Termination of employment agreements (1) | [1] | 578 | $ (4,503) | |
Consulting fees | 340 | |||
Other expenses (income), net | $ 914 | $ (13) | $ (4,181) | |
[1] | During 2015, the Company recorded compensation expenses related to the termination of employment of the Company's former Chief Executive Officer and related to the termination of employment of the Company's former Chief Executive Officer of the U.S. subsidiary. |
Supplemental statement of ope62
Supplemental statement of operations data (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Supplemental statement of operations data [Abstract] | ||
Supplemental Unemployment Benefits, Severance Benefits | $ 4,719 | |
Cumulative severance pay provisions, net | $ 2,854 | |
Payments for employment term and the termination | $ 2,500 | |
Impairment of intangible assets | 328 | |
Impairment of goodwill | $ 485 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | Jan. 04, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Income Taxes [Abstract] | ||||
Undistributed earnings of foreign subsidiaries | $ 3,292 | |||
Gross unrecognized tax benefits | ||||
Accrued interest and penalties | ||||
Operating Loss Carryforwards [Line Items] | ||||
Corporate income tax rate | 26.50% | 26.50% | 25.00% | |
Subsequent Event [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Corporate income tax rate | 25.00% | |||
Israel [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards | $ 188,489 | |||
Non-Israel [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards | 3,747 | |||
Non-Israel [Member] | None [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards | 93 | |||
Non-Israel [Member] | Tax expire in year 2017 [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards | $ 30 | |||
Expiration | Dec. 31, 2017 | |||
Non-Israel [Member] | Tax expire in year 2026 [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards | $ 3,091 | |||
Expiration | Dec. 31, 2026 | |||
Non-Israel [Member] | Tax expire in year 2027 [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards | $ 533 | |||
Expiration | Dec. 31, 2027 |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Deferred tax assets: | ||||
Net operating loss carryforwards | $ 51,120 | $ 48,720 | ||
Other | 1,311 | 1,777 | ||
Total gross deferred tax assets | 52,431 | 50,497 | ||
Less - valuation allowance | $ (52,431) | (50,450) | $ (42,691) | $ (42,002) |
Net deferred tax assets | 47 | |||
Deferred tax liabilities: | ||||
Other | $ (352) | (302) | ||
Net deferred tax liability | $ (352) | $ (302) |
Income Taxes (Schedule of Net C
Income Taxes (Schedule of Net Change in Valuation Allowance) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Valuation Allowance [Line Items] | |||
Balance at beginning of year | $ 50,450 | $ 42,691 | $ 42,002 |
Balance at end of year | 52,431 | 50,450 | 42,691 |
Continued operation [Member] | |||
Valuation Allowance [Line Items] | |||
Change in valuation allowance | $ 2,181 | $ 2,349 | 1,654 |
Amendments to tax laws and applicable future tax rates [Member] | |||
Valuation Allowance [Line Items] | |||
Change in valuation allowance | 2,394 | ||
Discontinued operations [Member] | |||
Valuation Allowance [Line Items] | |||
Change in valuation allowance | $ (201) | $ 5,405 | (3,402) |
Other changes [Member] | |||
Valuation Allowance [Line Items] | |||
Change in valuation allowance | $ 1 | $ 5 | $ 43 |
Income Taxes (Schedule of Incom
Income Taxes (Schedule of Income Tax Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Taxes [Abstract] | |||
Current | $ (2) | $ (265) | |
Deferred | $ (122) | (108) | 62 |
Income tax expense | $ (122) | $ (110) | $ (203) |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Income Tax Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Taxes [Abstract] | |||
Computed "expected" income tax benefit | $ 2,087 | $ 2,673 | $ 1,681 |
Change in valuation allowance, net | (2,181) | (2,349) | (1,654) |
Non-deductible stock-based compensation related to options issued to employees | (123) | (232) | (91) |
Other non-deductible expenses | (96) | (113) | (43) |
Other | 191 | (89) | (96) |
Income tax expense | $ (122) | $ (110) | $ (203) |
Income Taxes (Income (Loss) bef
Income Taxes (Income (Loss) before Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Taxes [Abstract] | |||
Israel | $ (8,187) | $ (10,434) | $ (8,842) |
Non-Israel | 313 | 347 | 2,117 |
Loss from continuing operations before taxes on income | $ (7,874) | $ (10,087) | $ (6,725) |
Discontinued Operations (Narrat
Discontinued Operations (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Discontinued operations [Line Items] | |||
Other income, net | $ 848 | $ 1,006 | $ 5,974 |
Smart ID division divesture [Member] | |||
Discontinued operations [Line Items] | |||
Other income, net | $ 848 | 1,013 | |
German subsidiary divesture [Member] | |||
Discontinued operations [Line Items] | |||
Other income, net | (343) | ||
Profit amount due to transfer of accumulated foreign currency translation adjustments from other comprehensive loss | $ 336 |
Discontinued Operations (Schedu
Discontinued Operations (Schedule of Results) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Discontinued Operations [Abstract] | |||
Revenues | $ 1,131 | $ 16,034 | |
Expenses | $ (91) | (1,822) | (18,231) |
Other income, net | 848 | 1,006 | 5,974 |
Net income from discontinued operations | $ 757 | $ 315 | $ 3,777 |
Related Party Balances and Tr71
Related Party Balances and Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Related Party Balances And Transactions [Abstract] | ||||
Costs and expenses | [1] | $ 13 | ||
Due to related parties | ||||
[1] | Cost and expenses relate to services provided to the Company by related parties. |
Operating Segments (Details)
Operating Segments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Segment Reporting Information [Line Items] | |||||
Revenues | $ 19,861 | $ 23,062 | $ 19,868 | ||
Reportable segment gross profit | [1] | 10,919 | 11,838 | 11,337 | |
Depreciation | (745) | (747) | (577) | ||
Stock based compensation | (34) | (35) | (32) | ||
Gross profit | 10,140 | 11,056 | 10,728 | ||
Petroleum [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 4,386 | 3,838 | 4,532 | ||
Reportable segment gross profit | [1] | 2,353 | 2,213 | 2,694 | |
Retail and Mass Transit Ticketing [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 11,510 | [2] | 15,042 | 11,743 | |
Reportable segment gross profit | [1] | 6,482 | 7,143 | 6,469 | |
Parking [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 1,389 | 2,392 | 2,210 | ||
Reportable segment gross profit | [1] | 894 | 1,543 | 1,366 | |
Other [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 2,576 | 1,790 | 1,383 | ||
Reportable segment gross profit | [1] | $ 1,190 | $ 939 | $ 808 | |
[1] | Gross profit as reviewed by the CODM, represents gross profit, adjusted to exclude depreciation and stock based compensation. | ||||
[2] | The revenues from retail and mass transit ticketing segment for the year ended December 31, 2015 include revenues derived from a litigation settlement with perpetual license agreement. Those revenues are presented within revenues from ‘licensing and transaction fees' in the statements of operations. |
Geographic Information and Ma73
Geographic Information and Major Customers (Revenues by Geographical Areas from External Customers) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Export | $ 18,614 | $ 21,296 | $ 18,088 |
Domestic (Israel) | 1,247 | 1,766 | 1,780 |
Total revenues | 19,861 | 23,062 | 19,868 |
Americas [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Export | 8,044 | 8,868 | 6,856 |
Asia [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Export | 500 | 1,077 | 99 |
Africa [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Export | 3,970 | 3,865 | 4,073 |
Europe [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Export | $ 6,100 | $ 7,486 | $ 7,060 |
Geographic Information and Ma74
Geographic Information and Major Customers (Long Lived Assets by Geographical Areas) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long lived assets | $ 8,668 | $ 9,234 |
Domestic (Israel) [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long lived assets | 2,415 | 2,656 |
Poland [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long lived assets | 5,379 | 5,406 |
South Africa [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long lived assets | 796 | 1,061 |
America [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long lived assets | $ 78 | $ 111 |
Geographic Information and Ma75
Geographic Information and Major Customers (Major Customer Concentrations) (Details) - Revenue [Member] - Customer [Member] | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Customer A [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration risk percentage | [1] | 15.00% | 22.00% | 19.00% |
Customer B [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration risk percentage | [1] | 15.00% | 14.00% | 15.00% |
[1] | The revenues derives from the both customers are presented within the revenues from the Retail and Mass Transit Ticketing. |