Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Nov. 10, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | ON TRACK INNOVATIONS LTD | |
Entity Central Index Key | 1,021,604 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,016 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 40,941,376 |
Interim Unaudited Condensed Con
Interim Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | [1] |
Current assets | |||
Cash and cash equivalents | $ 6,937 | $ 5,450 | |
Short-term investments | 5,984 | 5,454 | |
Trade receivables (net of allowance for doubtful accounts of $769 and $778 as of September 30, 2016 and December 31, 2015, respectively) | 3,692 | 2,418 | |
Other receivables and prepaid expenses | 1,903 | 2,183 | |
Inventories | 2,704 | 3,330 | |
Total current assets | 21,220 | 18,835 | |
Long-term restricted deposit for employees benefit | 477 | 524 | |
Severance pay deposits | 328 | 455 | |
Property, plant and equipment, net | 6,292 | 8,668 | |
Intangible assets, net | 255 | 180 | |
Total Assets | 28,572 | 28,662 | |
Current Liabilities | |||
Short-term bank credit and current maturities of long-term bank loans | 3,780 | 3,815 | |
Trade payables | 6,472 | 5,441 | |
Other current liabilities | 2,227 | 2,724 | |
Total current liabilities | 12,479 | 11,980 | |
Long-Term Liabilities | |||
Long-term loans, net of current maturities | 1,435 | 2,359 | |
Accrued severance pay | 849 | 1,148 | |
Deferred tax liability | 407 | 352 | |
Total long-term liabilities | 2,691 | 3,859 | |
Total Liabilities | 15,170 | 15,839 | |
Shareholders' Equity | |||
Ordinary shares of NIS 0.1 par value: Authorized - 50,000,000 shares as of September 30, 2016 and December 31, 2015; issued: 42,120,075 and 42,014,673 shares as of September 30, 2016 and December 31, 2015, respectively; outstanding: 40,941,376 and 40,835,974 shares as of September 30, 2016 and December 31, 2015, respectively | 1,057 | 1,055 | |
Additional paid-in capital | 224,214 | 225,925 | |
Treasury shares at cost - 1,178,699 shares as of September 30, 2016 and December 31, 2015 | (2,000) | (2,000) | |
Accumulated other comprehensive loss | (996) | (1,084) | |
Accumulated deficit | (208,873) | (209,254) | |
Total Shareholder's equity | 13,402 | 14,642 | |
Non-controlling interest | (1,819) | ||
Total Equity | 13,402 | 12,823 | |
Total Liabilities and Equity | $ 28,572 | $ 28,662 | |
[1] | Assets and liabilities of the discontinued operation, that is mentioned in Note 1C(2), are not reclassified as held for sale as of December 31, 2015, due to immateriality. |
Interim Unaudited Condensed Co3
Interim Unaudited Condensed Consolidated Balance Sheets (Parenthetical) $ in Thousands | Sep. 30, 2016USD ($)shares | Sep. 30, 2016₪ / shares | Dec. 31, 2015USD ($)shares | Dec. 31, 2015₪ / shares |
Interim Unaudited Condensed Consolidated Balance Sheets [Abstract] | ||||
Allowance for doubtful accounts | $ | $ 769 | $ 778 | ||
Ordinary shares, par value | ₪ / shares | ₪ 0.1 | ₪ 0.1 | ||
Ordinary shares, shares authorized | 50,000,000 | 50,000,000 | ||
Ordinary shares, shares issued | 42,120,075 | 42,014,673 | ||
Ordinary shares, shares outstanding | 40,941,376 | 40,835,974 | ||
Treasury shares held | 1,178,699 | 1,178,699 |
Interim Unaudited Condensed Co4
Interim Unaudited Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||||
Revenues | |||||||
Sales | $ 3,463 | $ 2,207 | [1] | $ 10,409 | $ 9,503 | [1] | |
Licensing and transaction fees | 2,133 | 1,195 | [1] | 4,569 | 3,540 | [1] | |
Total revenues | 5,596 | 3,402 | [1] | 14,978 | 13,043 | [1] | |
Cost of revenues | |||||||
Cost of sales | 2,307 | 1,548 | [1] | 6,917 | 6,487 | [1] | |
Cost of licensing | 250 | 250 | |||||
Total cost of revenues | 2,557 | 1,548 | [1] | 7,167 | 6,487 | [1] | |
Gross profit | 3,039 | 1,854 | [1] | 7,811 | 6,556 | [1] | |
Operating expenses | |||||||
Research and development | 604 | 781 | [1] | 2,072 | 2,596 | [1] | |
Selling and marketing | 1,300 | 1,523 | [1] | 3,974 | 4,688 | [1] | |
General and administrative | 784 | 1,025 | [1] | 2,576 | 3,336 | [1] | |
Patent litigation and maintenance | 3 | 351 | [1] | 37 | 802 | [1] | |
Other expenses | 83 | 408 | [1] | 83 | 918 | [1] | |
Total operating expenses | 2,774 | 4,088 | [1] | 8,742 | 12,340 | [1] | |
Operating income (loss) from continuing operations | 265 | (2,234) | [1] | (931) | (5,784) | [1] | |
Financial expenses, net | (30) | (108) | [1] | (185) | (511) | [1] | |
Profit (loss) from continuing operations before taxes on income | 235 | (2,342) | [1] | (1,116) | (6,295) | [1] | |
Income tax | (28) | (35) | [1] | (60) | (38) | [1] | |
Net income (loss) from continuing operations | 207 | (2,377) | [1] | (1,176) | (6,333) | [1] | |
Net (loss) income from discontinued operations | (279) | 391 | [1] | 1,525 | 538 | [1] | |
Net (loss) income | (72) | (1,986) | [1] | 349 | (5,795) | [1] | |
Net loss (income) attributable to noncontrolling interest | 5 | (23) | [1] | 32 | 3 | [1] | |
Net (loss) income attributable to shareholders | $ (67) | $ (2,009) | [1] | $ 381 | $ (5,792) | [1] | |
Basic and diluted net gain (loss) attributable to shareholders per ordinary share | |||||||
From continuing operations | $ 0.01 | $ (0.06) | [1] | $ (0.03) | $ (0.15) | [1] | |
From discontinued operations | (0.01) | 0.01 | [1] | 0.04 | 0.01 | [1] | |
Total | [2] | $ (0.05) | [1] | $ 0.01 | $ (0.14) | [1] | |
Weighted average number of ordinary shares used in computing basic net (loss) income per ordinary share | 40,914,258 | 40,874,474 | [1] | 40,895,268 | 40,868,252 | [1] | |
Weighted average number of ordinary shares used in computing diluted net (loss) income per ordinary share | 41,667,258 | 40,874,474 | [1] | 40,895,268 | 40,868,252 | [1] | |
[1] | Reclassified to conform with the current period presentation, see Note 1C(2) | ||||||
[2] | Less than $0.01 per ordinary share. |
Interim Unaudited Condensed Co5
Interim Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |||
Total comprehensive (loss) income: | ||||||
Net (loss) income | $ (72) | $ (1,986) | [1] | $ 349 | $ (5,795) | [1] |
Foreign currency translation adjustments | 110 | (98) | 88 | (292) | ||
Total comprehensive (loss) income | 38 | (2,084) | 437 | (6,087) | ||
Comprehensive loss (income) attributable to the non-controlling interest | 5 | (23) | 32 | 3 | ||
Total comprehensive (loss) income attributable to shareholders | $ 43 | $ (2,107) | $ 469 | $ (6,084) | ||
[1] | Reclassified to conform with the current period presentation, see Note 1C(2) |
Interim Unaudited Condensed Co6
Interim Unaudited Condensed Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Share capital | Additional paid-in capital | Treasury Shares (at cost) | Accumulated other comprehensive Income (loss) | Accumulated deficit | Noncontrolling interest | |||
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 nine months period ended | ||||||||||
Stock-based compensation related to options granted | 369 | 369 | ||||||||
Exercise of options and warrants | [1] | [1] | ||||||||
Exercise of options and warrants, shares | 18,071 | |||||||||
Foreign currency translation adjustments | (292) | (292) | ||||||||
Net (loss) income | (5,795) | [2] | (5,792) | (3) | ||||||
Balance at Sep. 30, 2015 | 14,165 | $ 1,055 | 224,603 | (2,000) | (1,092) | (207,895) | (506) | |||
Balance, shares at Sep. 30, 2015 | 42,014,673 | |||||||||
Balance at Dec. 31, 2015 | 12,823 | [3] | $ 1,055 | 225,925 | (2,000) | (1,084) | (209,254) | (1,819) | ||
Balance, shares at Dec. 31, 2015 | 42,014,673 | |||||||||
Changes during the nine months period ended | ||||||||||
Stock-based compensation | 174 | [1] | 174 | |||||||
Stock-based compensation, shares | [4] | 15,000 | ||||||||
Exercise of options and warrants | 37 | $ 2 | 35 | |||||||
Exercise of options and warrants, shares | 90,402 | |||||||||
Increase in the ownership rate in subsidiaries | [5] | (69) | (1,920) | 1,851 | ||||||
Foreign currency translation adjustments | 88 | 88 | ||||||||
Net (loss) income | 349 | 381 | (32) | |||||||
Balance at Sep. 30, 2016 | $ 13,402 | $ 1,057 | $ 224,214 | $ (2,000) | $ (996) | $ (208,873) | ||||
Balance, shares at Sep. 30, 2016 | 42,120,075 | |||||||||
[1] | Less than $1. | |||||||||
[2] | Reclassified to conform with the current period presentation, see Note 1C(2) | |||||||||
[3] | Assets and liabilities of the discontinued operation, that is mentioned in Note 1C(2), are not reclassified as held for sale as of December 31, 2015, due to immateriality. | |||||||||
[4] | See Note 8C. | |||||||||
[5] | See Note 1C(2) |
Interim Unaudited Condensed Co7
Interim Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | [1] | ||
Cash flows from continuing operating activities | ||||
Net loss from continuing operations | $ (1,176) | $ (6,333) | ||
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 | 174 | 369 | ||
Loss (gain) on sale of property and equipment | 83 | (8) | ||
Accrued interest and linkage differences, net | 19 | 30 | ||
Depreciation | 911 | 918 | ||
Changes in operating assets and liabilities: | ||||
Accrued severance pay, net | (152) | (39) | ||
Deferred tax, net | 60 | 36 | ||
(Increase) decrease in trade receivables, net | (1,376) | 1,885 | ||
(Increase) decrease in other receivables and prepaid expenses | (16) | 133 | ||
Decrease (increase) in inventories | 246 | (267) | ||
Increase in trade payables | 1,024 | 445 | ||
(Decrease) increase in other current liabilities | (408) | 194 | ||
Net cash used in continuing operating activities | (611) | (2,637) | ||
Cash flows from continuing investing activities | ||||
Purchase of property and equipment | (185) | (1,117) | ||
Proceeds from sale of property and equipment | 1,779 | 31 | ||
Change in short-term investments, net | (502) | 3,998 | ||
Investment in capitalized product costs | (139) | (153) | ||
Investment in restricted deposit for employees benefit | (281) | |||
Proceeds from restricted deposit for employees benefit | 142 | 144 | ||
Net cash provided by continuing investing activities | 1,095 | 2,622 | ||
Cash flows from continuing financing activities | ||||
Increase (decrease) in short-term bank credit, net | 287 | (783) | ||
Proceeds from long-term bank loans | 27 | 716 | ||
Repayment of long-term bank loans | (1,368) | (606) | ||
Proceeds from exercise of options and warrants | 37 | [2] | ||
Net cash used in continuing financing activities | (1,017) | (673) | ||
Cash flows from discontinued operations | ||||
Net cash used in discontinued operating activities | (183) | (433) | ||
Net cash provided by discontinued investing activities | 2,152 | 387 | ||
Total net cash provided by (used in) discontinued operations | 1,969 | (46) | ||
Effect of exchange rate changes on cash and cash equivalents | 51 | (198) | ||
Increase (decrease) in cash and cash equivalents | 1,487 | (932) | ||
Cash and cash equivalents at the beginning of the period | 5,450 | [3] | 5,351 | |
Cash and cash equivalents at the end of the period | 6,937 | 4,419 | ||
Cash paid during the period for: | ||||
Interest paid | $ 148 | $ 217 | ||
[1] | Reclassified to conform with the current period presentation, see Note 1C(2) | |||
[2] | Less than $1. | |||
[3] | Assets and liabilities of the discontinued operation, that is mentioned in Note 1C(2), are not reclassified as held for sale as of December 31, 2015, due to immateriality. |
Organization and Basis of Prese
Organization and Basis of Presentation | 9 Months Ended |
Sep. 30, 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 nine month period ended September 30, 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 1. In December 2013, the Company completed the sale of certain assets, subsidiaries and intellectual property ("IP") relating to its Smart ID division to SuperCom Ltd. (“SuperCom”). Accordingly the results and the cash flows of these operations for all reporting periods are presented in the statements of operations and in the statements of cash flows, respectively, as discontinued operations separately from continuing operations. During the nine month period ended September 30 2016, and 2015, the Company recorded profit from contingent consideration that derived from the SmartID division divesture (see also Note 6). 2. On September 14, 2016, the Company completed the sale of certain assets and IP relating to its Parking segment (the “Parking Business”) to Atrinet Ltd for a non-material amount. Accordingly the results and the cash flows of these operations 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 (see also Note 6). All prior periods’ information has been reclassified to conform with the current period’s presentation. Prior to the foregoing sale of assets and IP, the Company bought outthe minority interest in its subsidiaries that operated the Parking Business in consideration of $69. D. Other expenses Other operating expenses presented in the statement of operations for the nine and three months ended September 30, 2015 consist of compensation expenses related to the termination of employment of the Company’s former Chief Executive Office (“CEO”), Mr. Ofer Tziperman. following his resignation from the Company and its subsidiaries on February 10, 2015, and compensation expenses related to the termination of employment of the former CEO of the U.S. subsidiary on August 3, 2015. On May 7, 2016, the Company entered into an agreement pursuant to which the Company agreed to sell its headquarters building in Rosh Pina, Israel, to a third party for a consideration of NIS 7,000 and will lease back the portion of the building necessary for its current operations. The leaseback period is two years and the annual rent is approximately $130. The Company has the right to extend the lease by two additional one year periods on the same terms. On September 4, 2016, the sale of the building was completed. As a result of the sale, the Company recorded a loss of $83 under other operating expenses presented in the statement of operations for the nine and three months ended September 30, 2016. |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 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. Additional significant accounting policies In accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (hereinafter – “ASC”) Topic 260 “Earnings per Share”, including potential common shares in the denominator of a diluted per-share computation for continuing operations always will result in an antidilutive per-share amount when an entity has a loss from continuing operations or a loss from continuing operations available to common stockholders (that is, after any preferred dividend deductions). Although including those potential common shares in the other diluted per-share computations may be dilutive to their comparable basic per-share amounts, no potential common shares shall be included in the computation of any diluted per-share amount when a loss from continuing operations exists, even if the entity reports net income. Recent accounting pronouncements 1 On March 30, 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-09, “Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting”. This ASU simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The ASU, among others, allows an entity to elect as an accounting policy either to continue to estimate the total number of awards for which the requisite service period will not be rendered (as currently required) or to account for forfeitures when they occur. This entity-wide accounting policy election only applies to service conditions. For performance conditions, the entity continues to assess the probability that such conditions will be achieved. An entity must also disclose its policy election for forfeitures. The new standard is effective for annual reporting periods beginning after December 15, 2016, including interim periods within those annual reporting periods, with early adoption permitted. The Company is currently evaluating the effect ASU 2016-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected an accounting policy for forfeitures under this new ASU. 2 In connection with other recent accounting pronouncements and the Company’s assessment of the impacts they will have on the ongoing financial reporting, see Note 2Z 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 | 9 Months Ended |
Sep. 30, 2016 | |
Other Receivables and Prepaid Expenses [Abstract] | |
Other Receivables and Prepaid Expenses | Note 3 - Other Receivables and Prepaid Expenses September 30, December 31, 2016 2015 Government institutions $ 211 $ 463 Prepaid expenses 541 624 Receivables under contractual obligations to be transferred to others * 436 533 Other receivables 715 563 $ 1,903 $ 2,183 * The Company’s subsidiary in Poland is required to collect certain fees that are to be transferred to local authorities. |
Other Current Liabilities
Other Current Liabilities | 9 Months Ended |
Sep. 30, 2016 | |
Other Current Liabilities [Abstract] | |
Other Current Liabilities | Note 4 - Other Current Liabilities September 30, December 31, 2016 2015 Employees and related expenses $ 616 $ 1,065 Accrued expenses 1,178 1,101 Customer advances 268 283 Other current liabilities 165 275 $ 2,227 $ 2,724 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | Note 5 - 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. Therefore, the financial statements do not include any provision for 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 $1,671), 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 November 26, 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. B. Guarantees As of September 30, 2016, the Company has granted performance guarantees and guarantees to secure customer advances in the sum of $327. The expiration dates of the guarantees range from January 2017 to June 2019. C. Restrictive covenants On September 19, 2016, the Company received a definitive release from Bank Leumi L’Israel from any financial and restrictive covenants. |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Sep. 30, 2016 | |
Discontinued operations [Abstract] | |
Discontinued operations | Note 6 – Discontinued operations As described in Note 1C, the Company divested its SmartID division and its Parking Business. Each of these activities is presented as discontinued operations for all reporting periods. During the nine month periods ended September 30, 2016 and September 30, 2015, the Company recorded profit from contingent consideration in the amount of $2,139 and $848, respectively, derived from the Smart ID division divesture. This profit is presented below as ‘other income, net’ within income from discontinued operations for the nine months ended September 30, 2016 and September 30, 2015. The ‘other income, net’, that is presented within income from discontinued operations for the three months and nine months ended September 30, 2016, includes loss in amount of $136 which derives from the Parking Business divesture, including transaction costs. Three months ended Nine months ended 2016 2015 2016 2015 Revenues 184 353 768 1,103 Expenses (327 ) (423 ) (1,246 ) (1,413 ) Other income (expenses), net (136 ) 461 2,003 848 Net (loss) profit from discontinued operations (279 ) 391 1,525 538 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value of Financial Instruments | Note 7 - 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 September 30, 2016, the fair value of bank loans with fixed interest rates did not differ materially from the carrying amount. As of September 30, 2016, the Company held approximately $5,984 of short-term bank deposits (as of December 31, 2015, $5,454). Short-term deposits in the amount of $1,548 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 | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Equity | Note 8 – Equity A. Stock option plans During the nine months ended September 30, 2016 and September 30, 2015, 270,000 and 135,000 options were granted, respectively. The vesting period for the options ranges from one year 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-employees during the nine months ended September 30, 2016 and September 30, 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 1.03% and 1.21% for grants during the nine months ended September 30, 2016 and September 30, 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 nine months ended September 30, 2016 and September 30, 2015, respectively, using the simplified method. 4. Expected average volatility of 72% and 69% for grants during the nine months ended September 30, 2016 and September 30, 2015, respectively, which represent a weighted average standard deviation rate for the price of the Company's Ordinary Shares on the NASDAQ Global Market and NASDAQ Capital Market. The Company’s options activity (including options to non-employees) during the nine months ended September 30, 2016 and options outstanding and options exercisable as of December 31, 2015 and September 30, 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 (461,448 ) 2.07 Options exercised (54,260 ) 0.68 Outstanding – September 30, 2016 1,355,671 1.44 Exercisable as of: December 31, 2015 799,473 $ 1.85 September 30, 2016 701,018 $ 1.78 The weighted average fair value of options granted during the nine months ended September 30, 2016 and during the nine months ended September 30, 2015 is $0.41 and $0.82, respectively, per option. The aggregate intrinsic value of outstanding options as of September 30, 2016 and December 31, 2015 is approximately $174 and $8, respectively. The aggregate intrinsic value of exercisable options as of September 30, 2016 and December 31, 2015 is approximately $26 and $8, respectively. The following table summarizes information about options outstanding and exercisable (including options to non-employees) as of September 30, 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 September 30, contractual Exercise September 30, contractual Exercise exercise price 2016 life (years) Price 2016 life (years) Price $ 0.44-0.90 630,000 4.05 $ 0.76 111,667 3.08 $ 0.81 1.08-1.20 133,000 0.45 1.09 133,000 0.45 1.09 1.46 50,000 1.80 1.46 50,000 1.80 1.46 1.67-1.76 65,000 2.40 1.69 35,000 1.66 1.70 2.32-2.36 437,671 2.43 2.34 351,351 2.40 2.34 $ 3.03 40,000 2.98 $ 3.03 20,000 2.98 $ 3.03 1,355,671 2.98 701,018 2.08 As of September 30, 2016, there was approximately $270 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 year. During the nine months ended September 30, 2016 and September 30, 2015, the Company recorded stock-based compensation expenses in the amount of $174 and $369, respectively, in accordance with ASC 718 “Compensation-Stock Compensation.” B. Warrants During the nine months ended September 30, 2016, 281,369 warrants expired and 36,142 warrants were converted to ordinary shares. As of September 30, 2016 there are no remaining outstanding warrants. C. During the nine months ended September 30, 2016, the Company issued 15,000 ordinary shares to one of its consultants. The expenses that are recognized due to this issuance are immaterial and the issuance is presented within ‘stock based compensation’ in the statement of changes in equity for the nine months ended September 30, 2016. |
Operating segments
Operating segments | 9 Months Ended |
Sep. 30, 2016 | |
Operating segments [Abstract] | |
Operating segments | Note 9 - Operating segments For the purposes of allocating resources and assessing performance in order to improve profitability, the Company's chief operating decision maker ("CODM") examines two segments which are the Company's strategic business units: (1) Retail and Mass Transit Ticketing; and (2) Petroleum. In addition to its two reportable segments, certain products for the medical industry and other secure smart card solutions are classified under the Company’s "Other" segment. Prior to its divestiture of the Parking Business as noted in Notes 1C and 6 above, the CODM examined a third reportable segment consisting of the Company’s Parking acitivites. In light of the aforementioned divestiture, the previously reported parking segment has been eliminated with the corresponding expenses and revenues reported as Discontinued Operations. 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 September 30, 2016 Petroleum Retail and Mass Transit Ticketing Other Consolidated Revenues $ 1,056 $ 3,891 (**) $ 649 $ 5,596 Reportable segment gross profit * 638 2,238 326 3,202 Reconciliation of reportable segment gross profit to gross profit for the period Depreciation (161 ) Stock-based compensation (2 ) *Gross profit for the period $ 3,039 Three months ended September 30, 2015 Petroleum Retail and Mass Transit Ticketing Other Consolidated Revenues $ 1,013 $ 1,588 $ 801 $ 3,402 Reportable segment gross profit * 598 999 454 2,051 Reconciliation of reportable segment gross profit to gross profit for the period Depreciation (190 ) Stock-based compensation (7 ) Gross profit for the period $ 1,854 Nine months ended September 30, 2016 Petroleum Retail and Mass Transit Ticketing Other Consolidated Revenues $ 2,996 $ 10,029 (**) $ 1,953 $ 14,978 Reportable segment gross profit * 1,836 5,568 968 8,372 Reconciliation of reportable segment gross profit to profit for the period Depreciation (559 ) Stock-based compensation (2 ) Gross profit for the period $ 7,811 Nine months ended September 30, 2015 Petroleum Retail and Mass Transit Ticketing Other Consolidated Revenues $ 3,108 $ 8,303 $ 1,632 $ 13,043 Reportable segment gross profit * 1,800 4,463 873 7,136 Reconciliation of reportable segment gross profit to profit for the period Depreciation (545 ) Stock-based compensation (35 ) Gross profit for the period $ 6,556 * 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 three months and nine months ended September 30, 2016 include revenues derived from a litigation settlement with a perpetual license agreement. Those revenues are presented within revenues from ‘licensing and transaction fees’ in the statements of operations. |
Significant Accounting Polici17
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Significant Accounting Policies [Abstract] | |
Additional significant accounting policies | Additional significant accounting policies In accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (hereinafter – “ASC”) Topic 260 “Earnings per Share”, including potential common shares in the denominator of a diluted per-share computation for continuing operations always will result in an antidilutive per-share amount when an entity has a loss from continuing operations or a loss from continuing operations available to common stockholders (that is, after any preferred dividend deductions). Although including those potential common shares in the other diluted per-share computations may be dilutive to their comparable basic per-share amounts, no potential common shares shall be included in the computation of any diluted per-share amount when a loss from continuing operations exists, even if the entity reports net income. |
Recent accounting pronouncements | Recent accounting pronouncements 1 On March 30, 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-09, “Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting”. This ASU simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The ASU, among others, allows an entity to elect as an accounting policy either to continue to estimate the total number of awards for which the requisite service period will not be rendered (as currently required) or to account for forfeitures when they occur. This entity-wide accounting policy election only applies to service conditions. For performance conditions, the entity continues to assess the probability that such conditions will be achieved. An entity must also disclose its policy election for forfeitures. The new standard is effective for annual reporting periods beginning after December 15, 2016, including interim periods within those annual reporting periods, with early adoption permitted. The Company is currently evaluating the effect ASU 2016-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected an accounting policy for forfeitures under this new ASU. 2 In connection with other recent accounting pronouncements and the Company’s assessment of the impacts they will have on the ongoing financial reporting, see Note 2Z in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. |
Other Receivables and Prepaid18
Other Receivables and Prepaid Expenses (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Other Receivables and Prepaid Expenses [Abstract] | |
Schedule of Other Receivables and Prepaid Expenses | September 30, December 31, 2016 2015 Government institutions $ 211 $ 463 Prepaid expenses 541 624 Receivables under contractual obligations to be transferred to others * 436 533 Other receivables 715 563 $ 1,903 $ 2,183 * The Company’s subsidiary in Poland is required to collect certain fees that are to be transferred to local authorities. |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Other Current Liabilities [Abstract] | |
Summary of Other Current Liabilities | September 30, December 31, 2016 2015 Employees and related expenses $ 616 $ 1,065 Accrued expenses 1,178 1,101 Customer advances 268 283 Other current liabilities 165 275 $ 2,227 $ 2,724 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Discontinued operations [Abstract] | |
Schedule of Net (Loss) Profit from Discontinued Operations | Three months ended Nine months ended 2016 2015 2016 2015 Revenues 184 353 768 1,103 Expenses (327 ) (423 ) (1,246 ) (1,413 ) Other income (expenses), net (136 ) 461 2,003 848 Net (loss) profit from discontinued operations (279 ) 391 1,525 538 |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 30, 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 (461,448 ) 2.07 Options exercised (54,260 ) 0.68 Outstanding – September 30, 2016 1,355,671 1.44 Exercisable as of: December 31, 2015 799,473 $ 1.85 September 30, 2016 701,018 $ 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 September 30, contractual Exercise September 30, contractual Exercise exercise price 2016 life (years) Price 2016 life (years) Price $ 0.44-0.90 630,000 4.05 $ 0.76 111,667 3.08 $ 0.81 1.08-1.20 133,000 0.45 1.09 133,000 0.45 1.09 1.46 50,000 1.80 1.46 50,000 1.80 1.46 1.67-1.76 65,000 2.40 1.69 35,000 1.66 1.70 2.32-2.36 437,671 2.43 2.34 351,351 2.40 2.34 $ 3.03 40,000 2.98 $ 3.03 20,000 2.98 $ 3.03 1,355,671 2.98 701,018 2.08 |
Operating segments (Tables)
Operating segments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Operating segments [Abstract] | |
Schedule of Information Regarding Results of Each Reportable Segment | Three months ended September 30, 2016 Petroleum Retail and Mass Transit Ticketing Other Consolidated Revenues $ 1,056 $ 3,891 (**) $ 649 $ 5,596 Reportable segment gross profit * 638 2,238 326 3,202 Reconciliation of reportable segment gross profit to gross profit for the period Depreciation (161 ) Stock-based compensation (2 ) *Gross profit for the period $ 3,039 Three months ended September 30, 2015 Petroleum Retail and Mass Transit Ticketing Other Consolidated Revenues $ 1,013 $ 1,588 $ 801 $ 3,402 Reportable segment gross profit * 598 999 454 2,051 Reconciliation of reportable segment gross profit to gross profit for the period Depreciation (190 ) Stock-based compensation (7 ) Gross profit for the period $ 1,854 Nine months ended September 30, 2016 Petroleum Retail and Mass Transit Ticketing Other Consolidated Revenues $ 2,996 $ 10,029 (**) $ 1,953 $ 14,978 Reportable segment gross profit * 1,836 5,568 968 8,372 Reconciliation of reportable segment gross profit to profit for the period Depreciation (559 ) Stock-based compensation (2 ) Gross profit for the period $ 7,811 Nine months ended September 30, 2015 Petroleum Retail and Mass Transit Ticketing Other Consolidated Revenues $ 3,108 $ 8,303 $ 1,632 $ 13,043 Reportable segment gross profit * 1,800 4,463 873 7,136 Reconciliation of reportable segment gross profit to profit for the period Depreciation (545 ) Stock-based compensation (35 ) Gross profit for the period $ 6,556 * 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 three months and nine months ended September 30, 2016 include revenues derived from a litigation settlement with a perpetual license agreement. Those revenues are presented within revenues from ‘licensing and transaction fees’ in the statements of operations. |
Organization and Basis of Pre23
Organization and Basis of Presentation (Details) - USD ($) $ in Thousands | Sep. 14, 2016 | May 07, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | [1] | Sep. 30, 2016 | Sep. 30, 2015 | [1] |
Organization and Basis of Presentation (Textual) | ||||||||
Company bought minority interest in subsidiaries | $ 69 | |||||||
Lease agreement | On May 7, 2016, the Company entered into an agreement pursuant to which the Company agreed to sell its headquarters building in Rosh Pina, Israel, to a third party for a consideration of NIS 7,000 and will lease back the portion of the building necessary for its current operations. | |||||||
Lease agreement terms | 2 years | |||||||
Annual rent | $ 130 | |||||||
Lease agreement terms extend | 1 year | |||||||
Other operating expenses | $ 83 | $ 408 | $ 83 | $ 918 | ||||
[1] | Reclassified to conform with the current period presentation, see Note 1C(2) |
Other Receivables and Prepaid24
Other Receivables and Prepaid Expenses (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | ||
Other Receivables and Prepaid Expenses [Abstract] | ||||
Government institutions | $ 211 | $ 463 | ||
Prepaid expenses | 541 | 624 | ||
Receivables under contractual obligations to be transferred to others | [1] | 436 | 533 | |
Other receivables | 715 | 563 | ||
Total other receivables and prepaid expenses | $ 1,903 | $ 2,183 | [2] | |
[1] | The Company's subsidiary in Poland is required to collect certain fees that are to be transferred to local authorities. | |||
[2] | Assets and liabilities of the discontinued operation, that is mentioned in Note 1C(2), are not reclassified as held for sale as of December 31, 2015, due to immateriality. |
Other Current Liabilities (Deta
Other Current Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | |
Other Current Liabilities [Abstract] | |||
Employees and related expenses | $ 616 | $ 1,065 | |
Accrued expenses | 1,178 | 1,101 | |
Customer advances | 268 | 283 | |
Other current liabilities | 165 | 275 | |
Total other current liabilities | $ 2,227 | $ 2,724 | [1] |
[1] | Assets and liabilities of the discontinued operation, that is mentioned in Note 1C(2), are not reclassified as held for sale as of December 31, 2015, due to immateriality. |
Commitments and Contingencies (
Commitments and Contingencies (Details) € in Thousands, $ in Thousands | Oct. 03, 2013USD ($) | Oct. 03, 2013EUR (€) | Jun. 30, 2013USD ($) | Sep. 30, 2016USD ($) |
Commitments and Contingencies (Textual) | ||||
Guarantees to secure customer advances | $ 327 | |||
Guarantees expiration dates description | The expiration dates of the guarantees range from January 2017 to June 2019. | |||
Merwell Inc [Member] | ||||
Commitments and Contingencies (Textual) | ||||
Outstanding commissions arbitration | $ 855 | |||
French Subsidiary [Member] | ||||
Commitments and Contingencies (Textual) | ||||
Financial claim field | $ 1,671 | € 1,500 |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |||
Discontinued operations [Abstract] | ||||||
Revenues | $ 184 | $ 353 | $ 768 | $ 1,103 | ||
Expenses | (327) | (423) | (1,246) | (1,413) | ||
Other income (expenses), net | (136) | 461 | 2,003 | 848 | ||
Net (loss) profit from discontinued operations | $ (279) | $ 391 | [1] | $ 1,525 | $ 538 | [1] |
[1] | Reclassified to conform with the current period presentation, see Note 1C(2) |
Discontinued Operations (Deta28
Discontinued Operations (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Discontinued Operations (Textual) | ||||
Profit from contingent consideration | $ 2,139 | $ 848 | ||
Other income, net | $ (136) | $ 461 | $ 2,003 | $ 848 |
Fair Value of Financial Instr29
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | |
Fair Value of Financial Instruments (Textual) | |||
Short-term bank deposits | $ 5,984 | $ 5,454 | [1] |
Short-term bank deposit pledged as security | $ 1,548 | $ 2,254 | |
[1] | Assets and liabilities of the discontinued operation, that is mentioned in Note 1C(2), are not reclassified as held for sale as of December 31, 2015, due to immateriality. |
Equity (Details)
Equity (Details) - $ / shares | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Number of options outstanding | |||
Outstanding - Beginning Balance | 1,601,379 | ||
Options granted | 270,000 | 135,000 | |
Options expired or forfeited | (461,448) | ||
Options exercised | (54,260) | ||
Outstanding - Ending Balance | 1,355,671 | ||
Exercisable | 701,018 | 799,473 | |
Weighted average exercise price per share | |||
Outstanding - Beginning Balance | $ 1.71 | ||
Options granted | 0.76 | ||
Options expired or forfeited | 2.07 | ||
Options exercised | 0.68 | ||
Outstanding - Ending Balance | 1.44 | ||
Exercisable | $ 1.78 | $ 1.85 |
Equity (Details 1)
Equity (Details 1) | 9 Months Ended |
Sep. 30, 2016$ / sharesshares | |
Range of exercise price | |
Lower limit | $ 0.44 |
Upper limit | $ 1.68 |
Options outstanding | |
Number outstanding | shares | 1,355,671 |
Weighted average remaining contractual life | 2 years 11 months 23 days |
Options exercisable | |
Number outstanding | shares | 701,018 |
Weighted average remainging cotractual life | 2 years 29 days |
0.44-0.90 [Member] | |
Range of exercise price | |
Lower limit | $ 0.44 |
Upper limit | $ 0.90 |
Options outstanding | |
Number outstanding | shares | 630,000 |
Weighted average remaining contractual life | 4 years 18 days |
Weighted average exercise price | $ 0.76 |
Options exercisable | |
Number outstanding | shares | 111,667 |
Weighted average remainging cotractual life | 3 years 29 days |
Weighted average exercise price | $ 0.81 |
1.08-1.20 [Member] | |
Range of exercise price | |
Lower limit | 1.08 |
Upper limit | $ 1.20 |
Options outstanding | |
Number outstanding | shares | 133,000 |
Weighted average remaining contractual life | 5 months 12 days |
Weighted average exercise price | $ 1.09 |
Options exercisable | |
Number outstanding | shares | 133,000 |
Weighted average remainging cotractual life | 5 months 12 days |
Weighted average exercise price | $ 1.09 |
1.46 [Member] | |
Range of exercise price | |
Lower limit | 1.46 |
Upper limit | $ 1.46 |
Options outstanding | |
Number outstanding | shares | 50,000 |
Weighted average remaining contractual life | 1 year 9 months 18 days |
Weighted average exercise price | $ 1.46 |
Options exercisable | |
Number outstanding | shares | 50,000 |
Weighted average remainging cotractual life | 1 year 9 months 18 days |
Weighted average exercise price | $ 1.46 |
1.67-1.76 [Member] | |
Range of exercise price | |
Lower limit | 1.67 |
Upper limit | $ 1.76 |
Options outstanding | |
Number outstanding | shares | 65,000 |
Weighted average remaining contractual life | 2 years 4 months 24 days |
Weighted average exercise price | $ 1.69 |
Options exercisable | |
Number outstanding | shares | 35,000 |
Weighted average remainging cotractual life | 1 year 7 months 28 days |
Weighted average exercise price | $ 1.70 |
2.32-2.36 [Member] | |
Range of exercise price | |
Lower limit | 2.32 |
Upper limit | $ 2.36 |
Options outstanding | |
Number outstanding | shares | 437,671 |
Weighted average remaining contractual life | 2 years 5 months 5 days |
Weighted average exercise price | $ 2.34 |
Options exercisable | |
Number outstanding | shares | 351,351 |
Weighted average remainging cotractual life | 2 years 4 months 24 days |
Weighted average exercise price | $ 2.34 |
3.03 [Member] | |
Range of exercise price | |
Lower limit | 3.03 |
Upper limit | $ 3.03 |
Options outstanding | |
Number outstanding | shares | 40,000 |
Weighted average remaining contractual life | 2 years 11 months 23 days |
Weighted average exercise price | $ 3.03 |
Options exercisable | |
Number outstanding | shares | 20,000 |
Weighted average remainging cotractual life | 2 years 11 months 23 days |
Weighted average exercise price | $ 3.03 |
Equity (Details Textual)
Equity (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | ||
Equity [Abstract] | ||||
Options granted | 270,000 | 135,000 | ||
Lower limit | $ 0.44 | |||
Upper limit | $ 1.68 | |||
Risk-free interest rate | 1.03% | 1.21% | ||
Estimated expected lives | P3Y6M22D | P3Y6M | ||
Expected average volatility | 72.00% | 69.00% | ||
Weighted average fair value of options granted | $ 0.41 | $ 0.82 | ||
Aggregate intrinsic value of outstanding options | $ 174 | $ 8 | ||
Aggregate intrinsic value of exercisable options | 26 | $ 8 | ||
Unrecognized compensation cost | $ 270 | |||
Unrecognized compensation cost, period for recognition | 1 year | |||
Share-based Compensation | $ 174 | $ 369 | [1] | |
Issued ordinary shares of stock based compensation | 15,000 | |||
warrants expired | 281,369 | |||
Warrant exercised | 36,142 | |||
Vesting period description | The vesting period for the options ranges from one year to four years. The exercise prices for the options range from $0.44 to $1.68. Those options expire up to five years after the date of the grant. | |||
[1] | Reclassified to conform with the current period presentation, see Note 1C(2) |
Operating segments (Details)
Operating segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||||||
Segment Reporting Information [Line Items] | |||||||||
Revenues | $ 5,596 | $ 3,402 | [1] | $ 14,978 | $ 13,043 | [1] | |||
Reportable segment gross profit | [2] | 3,202 | 2,051 | 8,372 | 7,136 | ||||
Reconciliation of reportable segment gross profit to gross profit for the period | |||||||||
Depreciation | (161) | (190) | (559) | (545) | |||||
Stock-based compensation | 2 | 7 | 2 | 35 | |||||
Gross profit | 3,039 | 1,854 | [1] | 7,811 | 6,556 | [1] | |||
Petroleum [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenues | 1,056 | 1,013 | 2,996 | 3,108 | |||||
Reportable segment gross profit | [2] | 638 | 598 | 1,836 | 1,800 | ||||
Retail and Mass Transit Ticketing [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenues | 3,891 | [3] | 1,588 | 10,029 | [3] | 8,303 | |||
Reportable segment gross profit | [2] | 2,238 | 999 | 5,568 | 4,463 | ||||
Other [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenues | 649 | 801 | 1,953 | 1,632 | |||||
Reportable segment gross profit | [2] | $ 326 | $ 454 | $ 968 | $ 873 | ||||
[1] | Reclassified to conform with the current period presentation, see Note 1C(2) | ||||||||
[2] | Gross profit as reviewed by the CODM, represents gross profit, adjusted to exclude depreciation and stock-based compensation. | ||||||||
[3] | The revenues from retail and mass transit ticketing segment for the three months and nine months ended September 30, 2016 include revenues derived from a litigation settlement with a perpetual license agreement. Those revenues are presented within revenues from licensing and transaction fees' in the statements of operations. |
Operating segments (Details Tex
Operating segments (Details Textual) | 9 Months Ended |
Sep. 30, 2016Segments | |
Operating Segments (Textual) | |
Reportable segments | 2 |