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. |