on Track Innovations (OTIVF) 10-Q 16 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	May. 12, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
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 Common Stock, Shares Outstanding		40,887,116

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Current assets
Cash and cash equivalents	$ 5,053	$ 5,450
Short-term investments	4,584	5,454
Trade receivables (net of allowance for doubtful accounts of $788 and $778 as of March 31, 2016 and December 31, 2015, respectively)	3,909	2,418
Other receivables and prepaid expenses	2,208	2,183
Inventories	2,990	3,330
Total current assets	18,744	18,835
Long-term restricted deposit for employees benefit	501	524
Severance pay deposits	337	455
Property, plant and equipment, net	8,709	8,668
Intangible assets, net	217	180
Total Assets	28,508	28,662
Current Liabilities
Short-term bank credit and current maturities of long-term bank loans	4,165	3,815
Trade payables	6,135	5,441
Other current liabilities	2,628	2,724
Total current liabilities	12,928	11,980
Long-Term Liabilities
Long-term loans, net of current maturities	2,192	2,359
Accrued severance pay	921	1,148
Deferred tax liability	377	352
Total long-term liabilities	3,490	3,859
Total Liabilities	$ 16,418	$ 15,839
Commitments and Contingencies
Shareholders' Equity
Ordinary shares of NIS 0.1 par value: Authorized - 50,000,000 shares as of March 31, 2016 and December 31, 2015; issued: 42,029,673 and 42,014,673 shares as of March 31, 2016 and December 31, 2015, respectively; outstanding: 40,850,974 and 40,835,974 shares as of March 31, 2016 and December 31, 2015, respectively	$ 1,055	$ 1,055
Additional paid-in capital	225,952	225,925
Treasury shares at cost - 1,178,699 shares as of March 31, 2016 and December 31, 2015	(2,000)	(2,000)
Accumulated other comprehensive loss	(916)	(1,084)
Accumulated deficit	(210,119)	(209,254)
Total Shareholder's equity	13,972	14,642
Non-controlling interest	(1,882)	(1,819)
Total Equity	12,090	12,823
Total Liabilities and Equity	$ 28,508	$ 28,662

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) $ in Thousands	Mar. 31, 2016USD ($)shares	Mar. 31, 2016₪ / shares	Dec. 31, 2015USD ($)shares	Dec. 31, 2015₪ / shares
Condensed Consolidated Balance Sheets [Abstract]
Allowance for doubtful accounts | $	$ 788		$ 778
Ordinary shares, par value | ₪ / shares		₪ 0.1		₪ 0.1
Ordinary shares, shares authorized	50,000,000		50,000,000
Ordinary shares, shares issued	42,029,673		42,014,673
Ordinary shares, shares outstanding	40,850,974		40,835,974
Treasury shares held	1,178,699		1,178,699

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Revenues
Sales	$ 3,493	$ 3,597
Licensing and transaction fees	1,384	1,378
Total revenues	4,877	4,975
Cost of revenues
Cost of sales	2,332	2,505
Total cost of revenues	2,332	2,505
Gross profit	2,545	2,470
Operating expenses
Research and development	751	968
Selling and marketing	1,586	1,886
General and administrative	938	1,241
Patent litigation and maintenance	$ 17	176
Other expenses		77
Total operating expenses	$ 3,292	4,348
Operating loss from continuing operations	(747)	(1,878)
Financial expenses, net	(104)	(225)
Loss from continuing operations before taxes on income	(851)	(2,103)
Income tax	(16)	(19)
Net loss from continuing operations	(867)	(2,122)
Net (loss) income from discontinued operations	(61)	362
Net loss	(928)	(1,760)
Net loss (income) attributable to non-controlling interest	63	(9)
Net loss attributable to shareholders	$ (865)	$ (1,769)
Basic and diluted net (loss) profit attributable to shareholders per ordinary share
From continuing operations	$ (0.02)	$ (0.05)
From discontinued operations		0.01
Total	$ (0.02)	$ (0.04)
Weighted average number of ordinary shares used in computing basic and diluted net (loss) income per ordinary share	40,874,474	40,856,403

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Condensed Consolidated Statements of Comprehensive Loss [Abstract]
Net loss	$ (928)	$ (1,760)
Foreign currency translation adjustments	168	(224)
Total comprehensive loss	(760)	(1,984)
Comprehensive loss (income) attributable to the non-controlling interest	63	(9)
Total comprehensive loss attributable to shareholders	$ (697)	$ (1,993)

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Changes in Equity - USD ($) $ in Thousands	Total		Share capital [Member]		Additional paid-in capital [Member]	Treasury Shares (at cost) [Member]	Accumulated other comprehensive Income (loss) [Member]	Accumulated deficit [Member]	Noncontrolling interest [Member]
Balance at Dec. 31, 2014	$ 19,883		$ 1,055		$ 224,234	$ (2,000)	$ (800)	$ (202,103)	$ (503)
Balance, shares at Dec. 31, 2014			41,996,202
Changes during the three months period ended
Stock-based compensation related to options and shares issued to employees	180				$ 180
Foreign currency translation adjustments	(224)						$ (224)
Net loss	(1,760)							$ (1,769)	$ 9
Balance at Mar. 31, 2015	18,079		$ 1,055		$ 224,414	$ (2,000)	$ (1,024)	(203,872)	(494)
Balance, shares at Mar. 31, 2015			41,996,602
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
Changes during the three months period ended
Stock-based compensation related to options and shares issued to employees	27				$ 27
Foreign currency translation adjustments	$ 168						$ 168
Exercise of options		[1]		[1]
Exercise of options, shares	15,000		15,000
Net loss	$ (928)							$ (865)	$ (63)
Balance at Mar. 31, 2016	$ 12,090		$ 1,055		$ 225,952	$ (2,000)	$ (916)	$ (210,119)	$ (1,882)
Balance, shares at Mar. 31, 2016			42,029,673
[1]	Less than $1.

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016		Mar. 31, 2015
Cash flows from continuing operating activities
Net loss from continuing operations	$ (867)		$ (2,122)
Adjustments required to reconcile net loss to net cash used in continuing operating activities:
Stock-based compensation related to options issued to employees	27		180
Accrued interest and linkage differences	(7)		(2)
Depreciation	308		298
Changes in operating assets and liabilities:
Accrued severance pay, net	(109)		(20)
Deferred tax, net	16		19
(Increase) decrease in trade receivables, net	(1,408)		1,383
Decrease in other receivables and prepaid expenses	3		31
Decrease in inventories	377		501
Increase (decrease) in trade payables	506		(288)
Decrease in other current liabilities	(139)		(148)
Net cash used in continuing operating activities	(1,293)		(168)
Cash flows from continuing investing activities
Purchase of property and equipment	(83)		(111)
Decrease in short-term investments, net	901		816
Investment in capitalized product costs	(54)		(6)
Net cash provided by continuing investing activities	764		699
Cash flows from continuing financing activities
Increase in short-term bank credit, net	286		$ 108
Proceeds from long-term bank loans	27
Repayment of long-term bank loans	$ (263)		$ (229)
Proceeds from exercise of options		[1]
Net cash provided by (used in) continuing financing activities	$ 50		$ (121)
Cash flows from discontinued operations
Net cash used in discontinued operating activities			$ (25)
Net cash used in discontinued investing activities	$ (61)
Total net cash used in discontinued operations	(61)		$ (25)
Effect of exchange rate changes on cash and cash equivalents	143		(167)
(Decrease) increase in cash and cash equivalents	(397)		218
Cash and cash equivalents at the beginning of the period	5,450		5,351
Cash and cash equivalents at the end of the period	5,053		5,569
Cash paid during the period for:
Interest paid	$ 53		$ 69
[1]	Less than $1.

Organization and Basis of Prese

Organization and Basis of Presentation	3 Months Ended
	Mar. 31, 2016
Organization and Basis of Presentation [Abstract]
Organization and Basis of Presentation	Note 1 - Organization and Basis of Presentation A. Description of business On Track Innovations Ltd. (the “Company”) was founded in 1990, in Israel. The Company and its subsidiaries (together the “Group”) are principally engaged in the field of design and development of cashless payment solutions. The Company's shares are listed for trading on the NASDAQ Capital Market (formerly listed on the NASDAQ Global Market until April 13, 2016). B. Interim Unaudited Financial Information The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements and therefore should be read in conjunction with the Company's Annual Report on Form 10-K for the year ended December 31, 2015. In the opinion of management, all adjustments considered necessary for a fair presentation, consisting of normal recurring adjustments, have been included. Operating results for the three month period ended March 31, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. Use of Estimates: The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the assets, liabilities, revenue, costs, expenses and accumulated other comprehensive income/(loss) that are reported in the Interim Consolidated Financial Statements and accompanying disclosures. These estimates are based on management's best knowledge of current events, historical experience, actions that the Company may undertake in the future and on various other assumptions that are believed to be reasonable under the circumstances. As a result, actual results may be different from these estimates. C. Divestiture of operations In December 2013, the Company completed the sale of certain assets, subsidiaries and intellectual property ("IP") relating to its Smart ID division. Accordingly the results and the cash flows of this operation for all reporting periods are presented in the statements of operations and in the statements of cash flows, respectively, as discontinued operations separately from continuing operations. In connection with this discontinued operation, see also Note 7. On 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 (approximately $7,664) for consideration not paid for the Company's SmartID division sold to SuperCom in 2013. On December 24, 2015, SuperCom filed a counter claim against the Company in the amount of NIS 68,163 (approximately $18,100) for breach of contract and alleged damages caused to SuperCom by the Company in connection with certain representations we made, all with respect to the sale of our SmartID division to SuperCom in 2013 under a certain Asset Purchase Agreement, or the APA, the Company signed with SuperCom. Prior to the filing of the Company's response to the counterclaim, the parties mutually agreed to attend mediation, and in April 2016 the parties reached a settlement, which was approved by the court (see also Note 6). During the three month period ended March 31, 2016, the Company did not record any profit from contingent consideration according to an earn-out mechanism (see also Note 7). D. Other expenses Other operating expenses presented in the statement of operations for the three months ended March 31, 2015 consist of compensation expenses related to the termination of employment of the Company's former Chief Executive Office (“CEO”), Mr. Ofer Tziperman, according to his employment terms, following his resignation from the Company and its subsidiaries on February 10, 2015.

Significant Accounting Policies

Significant Accounting Policies	3 Months Ended
	Mar. 31, 2016
Significant Accounting Policies [Abstract]
Significant Accounting Policies	Note 2 – Significant Accounting Policies These interim unaudited condensed consolidated financial statements have been prepared according to the same accounting policies as those discussed in the Company's Annual Report on Form 10-K for the year ended December 31, 2015.

Other Receivables and Prepaid E

Other Receivables and Prepaid Expenses	3 Months Ended
	Mar. 31, 2016
Other Receivables and Prepaid Expenses [Abstract]
Other Receivables and Prepaid Expenses	Note 3 - Other Receivables and Prepaid Expenses March 31, December 31, 2016 2015 Government institutions $ 409 $ 463 Prepaid expenses 735 624 Receivables under contractual obligations to be transferred to others * 412 533 Other receivables 652 563 $ 2,208 $ 2,183 * The Company's subsidiary in Poland is required to collect certain fees that are to be transferred to local authorities.

Inventories

Inventories	3 Months Ended
	Mar. 31, 2016
Inventories [Abstract]
Inventories	Note 4 - Inventories Inventories consist of the following: March 31, December 31, 2016 2015 Raw materials $ 973 $ 944 Work in progress 470 174 Finished products 1,547 2,212 $ 2,990 $ 3,330

Other Current Liabilities

Other Current Liabilities	3 Months Ended
	Mar. 31, 2016
Other Current Liabilities [Abstract]
Other Current Liabilities	Note 5 - Other Current Liabilities March 31, December 31, 2016 2015 Employees and related expenses $ 730 $ 1,065 Accrued expenses 1,207 1,101 Customer advances 381 283 Other current liabilities 310 275 $ 2,628 $ 2,724

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2016
Commitments and Contingencies [Abstract]
Commitments and Contingencies	Note 6 - Commitments and Contingencies A. Legal claims 1. In June 2013, prior to the Company's divestiture of its SmartID division, Merwell Inc. (“Merwell”) filed a claim against the Company before an agreed-upon arbitrator alleging breach of contract in connection with certain commissions claimed to be owed to Merwell with respect to the division's activities in Tanzania. These activities, along with all other activities of the SmartID division, were later assigned to and assumed by SuperCom in its purchase of the division. SuperCom undertook to indemnify the Company and hold it harmless against any liabilities the Company may incur in connection with Merwell's consulting agreement and the arbitration. An arbitration decision was issued on February 21, 2016, awarding Merwell approximately $855 for outstanding commissions, subject to further evaluation. The arbitration decision is being appealed and is thus not yet ripe for enforcement. Regardless, as mentioned above, SuperCom is liable for all costs and liabilities arising out of this claim. 2. On October 3, 2013, a financial claim was filed against the Company and its then French subsidiary, Parx France (in this paragraph, together, the “Defendants”), in the Commercial Court of Paris, France (in this paragraph, the “Court”). The sum of the claim is Euro 1,500 (approximately $1,707), and is based on the allegation that the plaintiff sustained certain losses in connection with Defendants not granting the plaintiff exclusive marketing rights to distribute and operate the Defendants' PIAF Parking System in Paris and the Ile of France. The Company filed an initial memorandum of defense rejecting the plaintiff's allegations and claims. A technical hearing regarding this matter is scheduled for May 23, 2016. Based on the advice of counsel, the Company currently believes that it has no material obligations to the plaintiff and that there is no need for a provision for the claim. 3. On July 29, 2014, a former employee of the Company's Smart ID division filed a financial claim against the Company in the Regional Labor Court in Tel Aviv. The sum of the claim is NIS 4,744 (approximately $1,260), and is based on the allegation that the Company owes the plaintiff certain commissions. On April 19, 2016, the parties entered into a settlement agreement pursuant to which the Company will pay an aggregate sum of NIS 400 (approximately $106). On April 19, 2016, with the submittal of the settlement agreement, the Court dismissed the proceeding. 4. 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 (approximately $7,664) for consideration not paid for the Company's SmartID division sold to SuperCom in 2013. On December 24, 2015, SuperCom filed a counter claim against the Company in the amount of NIS 68,163 (approximately $18,100) for breach of contract and alleged damages caused to SuperCom by the Company in connection with certain representations we made, all with respect to the sale of our SmartID division to SuperCom in 2013 under the APA, we signed with SuperCom . On April 20, 2016, SuperCom and the Company jointly made a motion to the court to end and dismiss all related legal proceedings and notified the court that the parties had settled their claims. Pursuant to the settlement, each party waived certain claims against each other and SuperCom (i) has paid the Company $2,050 which will be recorded in the second quarter of 2016, and (ii) will pay the Company up to $1,500 in accordance with and subject to a certain earn-out mechanism previously stipulated in the Asset Purchase Agreement between the parties (the “APA”). SuperCom's payment of the amounts set forth in the settlement completes SuperCom's payment obligations under the APA with respect to the purchase price for the purchase of the Smart ID division. B. Guarantees As of March 31, 2016, the Company has granted performance guarantees and guarantees to secure customer advances in the sum of $724.The expiration dates of the guarantees range from May 2016 to January 2017.

Discontinued operations

Discontinued operations	3 Months Ended
	Mar. 31, 2016
Discontinued operations [Abstract]
Discontinued operations	Note 7 – Discontinued operations As described in Note 1C, the Company divested the SmartID division and presented these activities as discontinued operations. During the three month period ended March 31, 2016, the Company did not record any profit from contingent consideration according to an earn-out mechanism. During the three months ended March 31, 2015, the Company recorded profit from contingent consideration in the amount of $387 according to the earn-out mechanism derived from the Smart ID division divesture. This profit is presented below as ‘other income, net' within income from discontinued operations for the three months ended March 31, 2015. Set forth below are the results of the discontinued operations: Three months ended March 31, 2016 2015 Expenses $ (61 ) $ (25 ) Other income, net - 387 Net (loss) income from discontinued operations $ (61 ) $ 362

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Mar. 31, 2016
Fair Value of Financial Instruments [Abstract]
Fair Value of Financial Instruments	Note 8 - Fair Value of Financial Instruments The Company's financial instruments consist mainly of cash and cash equivalents, short-term interest bearing investments, accounts receivable, restricted deposits for employee benefits, accounts payable and short-term and long-term loans. Fair value for the measurement of financial assets and liabilities is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. The Company utilizes a valuation hierarchy for disclosure of the inputs for fair value measurement. This hierarchy prioritizes the inputs into three broad levels as follows: • Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date. • Level 2 Inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. • Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at measurement date. By distinguishing between inputs that are observable in the market place, and therefore more objective, and those that are unobservable and therefore more subjective, the hierarchy is designed to indicate the relative reliability of the fair value measurements. A financial asset or liability's classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The Company, in estimating fair value for financial instruments, used the following methods and assumptions: The carrying amounts of cash and cash equivalents, short-term interest bearing investments, 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. As of March 31, 2016, the fair value of bank loans with fixed interest rates did not differ materially from the carrying amount. As of March 31, 2016, the Company held approximately $4,584 of short-term bank deposits (as of December 31, 2015, $5,454). Short-term deposits in the amount of $2,284 have been pledged as security in respect of guarantees granted in respect of performance guarantees, loans and credit lines received from a bank (as of December 31, 2015, $2,254) and cannot be pledged to others or withdrawn without the consent of the bank.

Equity

Equity	3 Months Ended
	Mar. 31, 2016
Equity [Abstract]
Equity	Note 9 – Equity A. Stock option plans During the three months ended March 31, 2016 and March 31, 2015, 270,000 and 125,000 options were granted, respectively. The vesting period for the options ranges from three years to four years. The exercise prices for the options range from $0.44 to $1.68. Those options expire up to five years after the date of the grant. Any options which are forfeited or cancelled before expiration become available for future grants under the Company's option plan. The fair value of each option granted to employees and non-employee during the three months ended March 31, 2016 and March 31, 2015, for which the exercise price was greater than par value, was estimated on the date of grant, using the Black-Scholes model and the following assumptions: 1. Dividend yield of zero percent for all periods. 2. Risk-free interest rate of 1.18% and 1.21% for grants during the three months ended March 31, 2016 and March 31, 2015, respectively, based on U.S. Treasury yield curve in effect at the time of grant. 3. Estimated expected lives of 3.56 and 3.5 years for grants during the three months ended March 31, 2016 and March 31, 2015, respectively, using the simplified method. 4. Expected average volatility of 72% and 69% for grants during the three months ended March 31, 2016 and March 31, 2015, respectively, which represent a weighted average standard deviation rate for the price of the Company's Ordinary Shares on the NASDAQ Global Market. The Company's options activity (including options to non-employees) and options outstanding and options exercisable as of December 31, 2015 and March 31, 2016, are summarized in the following table: Number of Weighted options average exercise outstanding price per share Outstanding – December 31, 2015 1,601,379 $ 1.71 Options granted 270,000 0.76 Options expired or forfeited (255,393 ) 2.12 Options exercised (15,000 ) 0.03 Outstanding – March 31, 2016 1,600,986 1.50 Exercisable as of: December 31, 2015 799,473 $ 1.85 March 31, 2016 717,334 $ 1.78 The weighted average fair value of options granted during the three months ended March 31, 2016 and during the three months ended March 31, 2015 is $0.41 and $0.8, respectively, per option. The aggregate intrinsic value of outstanding options as of March 31, 2016 and December 31, 2015 is approximately $137 and $8, respectively. The aggregate intrinsic value of exercisable options as of March 31, 2016 and December 31, 2015 is approximately $9 and $8, respectively. The following table summarizes information about options outstanding and exercisable (including options to non-employees) as of March 31, 2016: Options outstanding Options Exercisable Number Weighted Number Weighted outstanding average Weighted Outstanding average Weighted as of remaining Average As of remaining Average Range of March 31, contractual Exercise March 31, contractual Exercise exercise price 2016 life (years) Price 2016 life (years) Price $ 0.03 3,000 0.67 $ 0.03 3,000 0.67 $ 0.03 0.44-0.90 683,148 4.34 0.77 88,148 1.6 0.90 1.08-1.29 138,000 0.92 1.09 138,000 0.92 1.09 1.46 76,666 1.54 1.46 56,666 1.27 1.46 1.67-1.76 116,667 1.81 1.68 81,667 1.12 1.68 2.23-2.84 521,283 2.75 2.34 317,631 2.52 2.34 3.03-3.18 62,222 2.33 $ 3.08 32,222 1.25 $ 3.13 1,600,986 3.13 717,334 1.78 As of March 31, 2016, there was approximately $430 of total unrecognized compensation cost related to non-vested stock-based compensation arrangements. That cost is expected to be recognized over a weighted-average period of approximately 1.5 years. During the three months ended March 31, 2016 and March 31, 2015, the Company recorded stock-based compensation expenses in the amount of $27 and $180, respectively, in accordance with ASC 718 “Compensation-Stock Compensation.” B. Warrants During the three months ended March 31, 2016, 260,869 warrants expired. The following table summarizes information about warrants outstanding and exercisable as of March 31, 2016: Warrants outstanding Warrants Exercisable Number Weighted Number Weighted outstanding average Weighted Outstanding average Weighted as of remaining Average As of remaining Average Range of March 31, contractual Exercise March 31, contractual Exercise exercise price 2016 life (years) Price 2016 life (years) Price $ - 56,648 0.68 $ - 20,500 0.11 $ - 56,648 0.68 20,500 0.11

Operating segments

Operating segments	3 Months Ended
	Mar. 31, 2016
Operating segments [Abstract]
Operating segments	Note 10 - Operating segments For the purposes of allocating resources and assessing performance in order to improve profitability, the Company's chief operating decision maker ("CODM") examines three segments which are the Company's strategic business units: Retail and Mass Transit Ticketing, Petroleum and Parking. In addition to its three reportable segments, certain products for the medical industry and other secure smart card solutions are classified under the Company's "Other" segment. The strategic business unit's allocation of resources and evaluation of performance are managed separately. The CODM does not examine assets or liabilities for those segments and therefore they are not presented. Information regarding the results of each reportable segment is included below based on the internal management reports that are reviewed by the CODM. Three months ended March 31, 2016 Petroleum Retail and Mass Transit Ticketing Parking Other Consolidated Revenues $ 1,109 $ 2,899 $ 305 $ 564 $ 4,877 Reportable segment gross profit * 701 1,524 213 292 2,730 Reconciliation of reportable segment Depreciation (189 ) Stock-based compensation 4 Gross profit for the period $ 2,545 Three months ended March 31, 2015 Petroleum Retail and Mass Transit Ticketing Parking Other Consolidated Revenues $ 1,140 $ 3,107 $ 341 $ 387 $ 4,975 Reportable segment gross profit * 642 1,598 218 197 2,655 Reconciliation of reportable segment Depreciation (172 ) Stock-based compensation (13 ) Gross profit for the period $ 2,470 * Gross profit as reviewed by the CODM, represents gross profit, adjusted to exclude depreciation and stock-based compensation.

Other Receivables and Prepaid18

Other Receivables and Prepaid Expenses (Tables)	3 Months Ended
	Mar. 31, 2016
Other Receivables and Prepaid Expenses [Abstract]
Schedule of Other Receivables and Prepaid Expenses	March 31, December 31, 2016 2015 Government institutions $ 409 $ 463 Prepaid expenses 735 624 Receivables under contractual obligations to be transferred to others * 412 533 Other receivables 652 563 $ 2,208 $ 2,183 * The Company's subsidiary in Poland is required to collect certain fees that are to be transferred to local authorities.

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Mar. 31, 2016
Inventories [Abstract]
Schedule of Inventory	March 31, December 31, 2016 2015 Raw materials $ 973 $ 944 Work in progress 470 174 Finished products 1,547 2,212 $ 2,990 $ 3,330

Other Current Liabilities (Tabl

Other Current Liabilities (Tables)	3 Months Ended
	Mar. 31, 2016
Other Current Liabilities [Abstract]
Summary of Other Current Liabilities	March 31, December 31, 2016 2015 Employees and related expenses $ 730 $ 1,065 Accrued expenses 1,207 1,101 Customer advances 381 283 Other current liabilities 310 275 $ 2,628 $ 2,724

Discontinued operations (Tables

Discontinued operations (Tables)	3 Months Ended
	Mar. 31, 2016
Discontinued operations [Abstract]
Schedule of Results of Discontinued Operations	Three months ended March 31, 2016 2015 Expenses $ (61 ) $ (25 ) Other income, net - 387 Net (loss) income from discontinued operations $ (61 ) $ 362

Equity (Tables)

Equity (Tables)	3 Months Ended
	Mar. 31, 2016
Equity [Abstract]
Schedule of Stock Option Activity	Number of Weighted options average exercise outstanding price per share Outstanding – December 31, 2015 1,601,379 $ 1.71 Options granted 270,000 0.76 Options expired or forfeited (255,393 ) 2.12 Options exercised (15,000 ) 0.03 Outstanding – March 31, 2016 1,600,986 1.50 Exercisable as of: December 31, 2015 799,473 $ 1.85 March 31, 2016 717,334 $ 1.78
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 March 31, contractual Exercise March 31, contractual Exercise exercise price 2016 life (years) Price 2016 life (years) Price $ 0.03 3,000 0.67 $ 0.03 3,000 0.67 $ 0.03 0.44-0.90 683,148 4.34 0.77 88,148 1.6 0.90 1.08-1.29 138,000 0.92 1.09 138,000 0.92 1.09 1.46 76,666 1.54 1.46 56,666 1.27 1.46 1.67-1.76 116,667 1.81 1.68 81,667 1.12 1.68 2.23-2.84 521,283 2.75 2.34 317,631 2.52 2.34 3.03-3.18 62,222 2.33 $ 3.08 32,222 1.25 $ 3.13 1,600,986 3.13 717,334 1.78
Schedule of Warrants Outstanding and Exercisable	Warrants outstanding Warrants Exercisable Number Weighted Number Weighted outstanding average Weighted Outstanding average Weighted as of remaining Average As of remaining Average Range of March 31, contractual Exercise March 31, contractual Exercise exercise price 2016 life (years) Price 2016 life (years) Price $ - 56,648 0.68 $ - 20,500 0.11 $ - 56,648 0.68 20,500 0.11

Operating segments (Tables)

Operating segments (Tables)	3 Months Ended
	Mar. 31, 2016
Operating segments [Abstract]
Reconciliation of Segment Information to Consolidated Financial Information	Three months ended March 31, 2016 Petroleum Retail and Mass Transit Ticketing Parking Other Consolidated Revenues $ 1,109 $ 2,899 $ 305 $ 564 $ 4,877 Reportable segment gross profit * 701 1,524 213 292 2,730 Reconciliation of reportable segment Depreciation (189 ) Stock-based compensation 4 Gross profit for the period $ 2,545 Three months ended March 31, 2015 Petroleum Retail and Mass Transit Ticketing Parking Other Consolidated Revenues $ 1,140 $ 3,107 $ 341 $ 387 $ 4,975 Reportable segment gross profit * 642 1,598 218 197 2,655 Reconciliation of reportable segment Depreciation (172 ) Stock-based compensation (13 ) Gross profit for the period $ 2,470 * Gross profit as reviewed by the CODM, represents gross profit, adjusted to exclude depreciation and stock-based compensation.

Organization and Basis of Pre24

Organization and Basis of Presentation (Divestiture of Operations) (Details) ₪ in Thousands, $ in Thousands	Dec. 24, 2015USD ($)	Dec. 24, 2015ILS (₪)	Oct. 19, 2015USD ($)	Oct. 19, 2015ILS (₪)
SuperCom Breach of Contract [Member]
Loss Contingencies [Line Items]
Lawsuit, damages sought	$ 18,100	₪ 68,163	$ 7,664	₪ 28,862

Other Receivables and Prepaid25

Other Receivables and Prepaid Expenses (Details) - USD ($) $ in Thousands		Mar. 31, 2016	Dec. 31, 2015
Other Receivables and Prepaid Expenses [Abstract]
Government institutions		$ 409	$ 463
Prepaid expenses		735	624
Receivables under contractual obligations to be transferred to others	[1]	412	533
Other receivables		652	563
Total other receivables and prepaid expenses		$ 2,208	$ 2,183
[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	Mar. 31, 2016	Dec. 31, 2015
Inventories [Abstract]
Raw materials	$ 973	$ 944
Work in progress	470	174
Finished products	1,547	2,212
Inventories	$ 2,990	$ 3,330

Other Current Liabilities (Deta

Other Current Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Other Current Liabilities [Abstract]
Employees and related expenses	$ 730	$ 1,065
Accrued expenses	1,207	1,101
Customer advances	381	283
Other current liabilities	310	275
Total other current liabilities	$ 2,628	$ 2,724

Commitments and Contingencies (

Commitments and Contingencies (Legal Claims) (Details) € in Thousands, ₪ in Thousands, $ in Thousands

Apr. 20, 2016USD ($)

Apr. 19, 2016USD ($)

Apr. 19, 2016ILS (₪)

Feb. 21, 2016USD ($)

Dec. 24, 2015USD ($)

Dec. 24, 2015ILS (₪)

Oct. 19, 2015USD ($)

Oct. 19, 2015ILS (₪)

Jul. 31, 2014USD ($)

Jul. 31, 2014ILS (₪)

Oct. 31, 2013USD ($)

Oct. 31, 2013EUR (€)

Former Employee One [Member]

Loss Contingencies [Line Items]

Lawsuit, damages sought

$ 1,260

₪ 4,744

Former Employee One [Member] | Subsequent Event [Member]

Loss Contingencies [Line Items]

Loss Contingency settlement payments

$ 106

₪ 400

French Subsidiary [Member]

Loss Contingencies [Line Items]

Lawsuit, damages sought

$ 1,707

€ 1,500

SuperCom Breach of Contract [Member]

Loss Contingencies [Line Items]

Lawsuit, damages awarded

$ 855

Lawsuit, damages sought

$ 18,100

₪ 68,163

$ 7,664

₪ 28,862

SuperCom Breach of Contract [Member] | Subsequent Event [Member]

Loss Contingencies [Line Items]

Loss Contingency settlement payments

$ 2,050

SuperCom Breach of Contract [Member] | Subsequent Event [Member] | Maximum [Member]

Loss Contingencies [Line Items]

Loss Contingency earn-out payments

$ 1,500

Commitments and Contingencies29

Commitments and Contingencies (Guarantees) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)
Commitments and Contingencies [Abstract]
Granted guarantee to third party	$ 724
Gurantee obligation expiration month, earliest	2016-05
Gurantee obligation expiration month, latest	2017-01

Discontinued operations (Schedu

Discontinued operations (Schedule of Results) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Discontinued operations [Abstract]
Gain from contingent consideration		$ 387
Expenses	$ (61)	(25)
Other income, net		387
Net (loss) income from discontinued operations	$ (61)	$ 362

Fair Value of Financial Instr31

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Fair Value of Financial Instruments [Abstract]
Short-term investments	$ 4,584	$ 5,454
Short-term deposit pledged as security	$ 2,284	$ 2,254

Equity (Narrative) (Details)

Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Equity [Abstract]
Options granted	270,000	125,000
Unrecognized compensation cost	$ 430
Unrecognized compensation cost, period for recognition	1 year 6 months
Share-based compensation expense	$ 27	$ 180
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price	$ 0.76
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
Exercise price	$ 0.44
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	4 years
Expiration period	5 years
Exercise price	$ 1.68

Equity (Schedule of Fair Value

Equity (Schedule of Fair Value Assumptions) (Details)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Stock option plans
Dividend yield	0.00%	0.00%
Risk-free interest rate	1.18%	1.21%
Expected life	3 years 6 months 22 days	3 years 6 months
Expected volatility	72.00%	69.00%

Equity (Schedule of Stock Optio

Equity (Schedule of Stock Options Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Number of options outstanding
Outstanding - Beginning Balance	1,601,379
Options granted	270,000	125,000
Options expired or forfeited	(255,393)
Options exercised	(15,000)
Outstanding - Ending Balance	1,600,986
Exercisable	717,334		799,473
Weighted average exercise price per share
Outstanding - Beginning Balance	$ 1.71
Options granted	0.76
Options expired or forfeited	2.12
Options exercised	0.03
Outstanding - Ending Balance	1.50
Exercisable	$ 1.78		$ 1.85
Aggregate intrinsic value
Outstanding	$ 137		$ 8
Exercisable	$ 9		$ 8
Weighted average fair value of options granted	$ 0.41	$ 0.8

Equity (Schedule of Options Out

Equity (Schedule of Options Outstanding and Exercisable) (Details)	3 Months Ended
	Mar. 31, 2016$ / sharesshares
Options outstanding
Number outstanding | shares	1,600,986
Weighted average remaining contractual life	3 years 1 month 17 days
Options exercisable
Number outstanding | shares	717,334
Weighted average remainging cotractual life	1 year 9 months 11 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	3,000
Weighted average remaining contractual life	8 months 1 day
Weighted average exercise price	$ 0.03
Options exercisable
Number outstanding | shares	3,000
Weighted average remainging cotractual life	8 months 1 day
Weighted average exercise price	$ 0.03
$0.44 - $0.90 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Lower limit	0.44
Upper limit	$ 0.90
Options outstanding
Number outstanding | shares	683,148
Weighted average remaining contractual life	4 years 4 months 2 days
Weighted average exercise price	$ 0.77
Options exercisable
Number outstanding | shares	88,148
Weighted average remainging cotractual life	1 year 7 months 6 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	138,000
Weighted average remaining contractual life	11 months 1 day
Weighted average exercise price	$ 1.09
Options exercisable
Number outstanding | shares	138,000
Weighted average remainging cotractual life	11 months 1 day
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	76,666
Weighted average remaining contractual life	1 year 6 months 14 days
Weighted average exercise price	$ 1.46
Options exercisable
Number outstanding | shares	56,666
Weighted average remainging cotractual life	1 year 3 months 7 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	116,667
Weighted average remaining contractual life	1 year 9 months 22 days
Weighted average exercise price	$ 1.68
Options exercisable
Number outstanding | shares	81,667
Weighted average remainging cotractual life	1 year 1 month 13 days
Weighted average exercise price	$ 1.68
$2.23 - $2.84 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Lower limit	2.23
Upper limit	$ 2.84
Options outstanding
Number outstanding | shares	521,283
Weighted average remaining contractual life	2 years 9 months
Weighted average exercise price	$ 2.34
Options exercisable
Number outstanding | shares	317,631
Weighted average remainging cotractual life	2 years 6 months 7 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 3 months 29 days
Weighted average exercise price	$ 3.08
Options exercisable
Number outstanding | shares	32,222
Weighted average remainging cotractual life	1 year 3 months
Weighted average exercise price	$ 3.13

Equity (Schedule of Warrants Ou

Equity (Schedule of Warrants Outstanding and Exercisable) (Details)	3 Months Ended
	Mar. 31, 2016$ / sharesshares
Warrants outstanding
Number outstanding	56,648
Weighted average remaining contractual life	8 months 5 days
Warrants exercisable
Number outstanding	20,500
Weighted average remaining contractual life	1 month 10 days
Warrants exercised	260,869
$0.00 [Member]
Warrants outstanding
Number outstanding	56,648
Weighted average remaining contractual life	8 months 5 days
Weighted average exercise price | $ / shares
Warrants exercisable
Number outstanding	20,500
Weighted average remaining contractual life	1 month 10 days
Weighted average exercise price | $ / shares

Operating segments (Details)

Operating segments (Details) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2016	Mar. 31, 2015
Segment Reporting Information [Line Items]
Revenues		$ 4,877	$ 4,975
Reportable segment gross profit	[1]	2,730	2,655
Reconciliation of reportable segment gross profit to gross profit for the period
Depreciation		(189)	(172)
Stock based compensation		4	(13)
Gross profit		2,545	2,470
Petroleum [Member]
Segment Reporting Information [Line Items]
Revenues		1,109	1,140
Reportable segment gross profit	[1]	701	642
Retail and Mass Transit Ticketing [Member]
Segment Reporting Information [Line Items]
Revenues		2,899	3,107
Reportable segment gross profit	[1]	1,524	1,598
Parking [Member]
Segment Reporting Information [Line Items]
Revenues		305	341
Reportable segment gross profit	[1]	213	218
Other [Member]
Segment Reporting Information [Line Items]
Revenues		564	387
Reportable segment gross profit	[1]	$ 292	$ 197
[1]	Gross profit as reviewed by the CODM, represents gross profit, adjusted to exclude depreciation and stock-based compensation.