on Track Innovations (OTIVF) 10-K 28 Mar 17 2016 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2016	Mar. 14, 2017	Jun. 30, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	ON TRACK INNOVATIONS LTD
Entity Central Index Key	1,021,604
Current Fiscal Year End Date	--12-31
Amendment Flag	false
Document Type	10-K
Document Period End Date	Dec. 31, 2016
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,016
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$ 37,040,864
Entity Common Stock, Shares Outstanding		41,079,376

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Current assets
Cash and cash equivalents	$ 5,952	$ 5,450
Short-term investments	5,585	5,454
Trade receivables (net of allowance for doubtful accounts of $720 and $778 as of December 31, 2016 and December 31, 2015, respectively)	5,620	2,418
Other receivables and prepaid expenses	1,638	2,183
Inventories	3,069	3,330
Total current assets	21,864	18,835
Long term restricted deposit for employees benefit	453	524
Severance pay deposits	322	455
Property, plant and equipment, net	5,788	8,668
Intangible assets, net	278	180
Total Assets	28,705	28,662
Current Liabilities
Short-term bank credit and current maturities of long-term bank loans	4,369	3,815
Trade payables	6,957	5,441
Other current liabilities	2,822	2,724
Total current liabilities	14,148	11,980
Long-Term Liabilities
Long-term loans, net of current maturities	1,215	2,359
Accrued severance pay	811	1,148
Deferred tax liability	373	352
Total long-term liabilities	2,399	3,859
Total Liabilities	16,547	15,839
Commitments and Contingencies
Shareholders' Equity
Ordinary shares of NIS 0.1 par value: Authorized - 50,000,000 shares as of December 31, 2016 and 2015; issued: 42,243,075 and 42,014,673 shares as of December 31, 2016 and 2015, respectively; outstanding: 41,064,376 and 40,835,974 shares as of December 31, 2016 and 2015, respectively	1,061	1,055
Additional paid-in capital	224,415	225,925
Treasury shares at cost - 1,178,699 shares as of December 31, 2016 and 2015	(2,000)	(2,000)
Accumulated other comprehensive loss	(1,236)	(1,084)
Accumulated deficit	(210,082)	(209,254)
Total Shareholder's equity	12,158	14,642
Non-controlling interest		(1,819)
Total Equity	12,158	12,823
Total Liabilities and Equity	$ 28,705	$ 28,662

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) $ in Thousands	Dec. 31, 2016USD ($)shares	Dec. 31, 2016₪ / shares	Dec. 31, 2015USD ($)shares	Dec. 31, 2015₪ / shares
Consolidated Balance Sheets [Abstract]
Allowance for doubtful accounts | $	$ 720		$ 778
Ordinary shares, par value | ₪ / shares		₪ 0.1		₪ 0.1
Ordinary shares, shares authorized	50,000,000		50,000,000
Ordinary shares, shares issued	42,243,075		42,014,673
Ordinary shares, shares outstanding	41,064,376		40,835,974
Treasury shares held	1,178,699		1,178,699

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015		Dec. 31, 2014
Revenues
Sales	$ 14,721	$ 12,501	[1]	$ 16,103	[1]
Licensing and transaction fees	5,843	5,971	[1]	4,567	[1]
Total revenues	20,564	18,472	[1]	20,670	[1]
Cost of revenues
Cost of sales	10,111	8,889	[1]	11,139	[1]
Cost of licensing	250	325	[1]		[1]
Total cost of revenues	10,361	9,214	[1]	11,139	[1]
Gross profit	10,203	9,258	[1]	9,531	[1]
Operating expenses
Research and development	2,810	3,436	[1]	4,142	[1]
Selling and marketing	5,546	6,368	[1]	7,241	[1]
General and administrative	3,499	4,497	[1]	5,929	[1]
Patent litigation and maintenance	48	830	[1]	1,497	[1]
Other expenses (income), net	191	914	[1]	(13)	[1]
Total operating expenses	12,094	16,045	[1]	18,796	[1]
Operating loss from continuing operations	(1,891)	(6,787)	[1]	(9,265)	[1]
Financial expenses, net	(396)	(583)	[1]	(527)	[1]
Loss from continuing operations before taxes on income	(2,287)	(7,370)	[1]	(9,792)	[1]
Income tax	(82)	(122)	[1]	(110)	[1]
Net loss from continuing operations	(2,369)	(7,492)	[1]	(9,902)	[1]
Net income from discontinued operations	1,509	253	[1]	20	[1]
Net loss	(860)	(7,239)		(9,882)
Net loss (income) attributable to non-controlling interest	32	88	[1]	(42)	[1]
Net loss attributable to shareholders	$ (828)	$ (7,151)	[1]	$ (9,924)	[1]
Basic and diluted net gain (loss) attributable to shareholders per ordinary share
From continuing operations	$ (0.06)	$ (0.18)	[1]	$ (0.29)	[1]
From discontinued operations	0.04		[1],[2]		[1],[2]
Total	$ (0.02)	$ (0.18)	[1]	$ (0.29)	[1]
Weighted average number of ordinary shares used in computing basic and diluted net profit (loss) per ordinary share	40,914,558	40,869,820	[1]	34,013,870	[1]
[1]	Reclassified to conform with the current period presentation, see Note 1B(3).
[2]	Less than $0.01 per ordinary share

Consolidated Statements of Ope5

Consolidated Statements of Operations (Parenthetical) - ₪ / shares	Dec. 31, 2016	Dec. 31, 2015
Consolidated Statements of Operations [Abstract]
Ordinary shares, par value	₪ 0.1	₪ 0.1

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Total comprehensive loss:
Net loss	$ (860)	$ (7,239)	$ (9,882)
Foreign currency translation adjustments	(152)	(284)	(435)
Foreign currency translation released following sale of a subsidiary			(393)
Total comprehensive loss	(1,012)	(7,523)	(10,710)
Comprehensive loss (income) attributable to the non-controlling interest	32	88	(42)
Total comprehensive loss attributable to shareholders	$ (980)	$ (7,435)	$ (10,752)

Consolidated Statements of Chan

Consolidated Statements of Changes in Equity - USD ($) $ in Thousands		Total		Share capital		Additional paid-in capital	Treasury Shares	Accumulated other comprehensive Income (loss)	Accumulated deficit	Non-controlling interest
Balance at Dec. 31, 2013		$ 18,404		$ 854		$ 212,246	$ (2,000)	$ 28	$ (192,179)	$ (545)
Balance, shares at Dec. 31, 2013				34,199,511
Changes during the year
Stock-based compensation related to options issued to employees		875				875
Exercise of options and warrants		870		$ 16		854
Exercise of options and warrants, shares				609,591
Issuance of shares, net of issuance expenses of $365		10,444		$ 185		10,259
Issuance of shares, net of issuance expenses of $365, shares				7,187,500
Foreign currency translation adjustments		(828)						(828)
Net income (loss)		(9,882)							(9,924)	42
Balance at Dec. 31, 2014		19,883		$ 1,055		224,234	(2,000)	(800)	(202,103)	(503)
Balance, shares at Dec. 31, 2014				41,996,602
Changes during the year
Stock-based compensation related to options issued to employees		463				463
Decrease in the ownership rate in subsidiaries, see Note 9E						1,228				(1,228)
Exercise of warrants			[1]		[1]
Exercise of warrants, shares				18,071
Foreign currency translation adjustments		(284)						(284)
Net income (loss)		(7,239)							(7,151)	(88)
Balance at Dec. 31, 2015		12,823		$ 1,055		225,925	(2,000)	(1,084)	(209,254)	(1,819)
Balance, shares at Dec. 31, 2015				42,014,673
Changes during the year
Stock-based compensation		239			[1]	239
Stock-based compensation, shares	[2]			15,000
Exercise of options and warrants		177		$ 6		171
Exercise of options and warrants, shares				213,402
Increase in the ownership rate in subsidiaries , see Note 9E		(69)				(1,920)				1,851
Foreign currency translation adjustments		(152)						(152)
Net income (loss)		(860)							(828)	(32)
Balance at Dec. 31, 2016		$ 12,158		$ 1,061		$ 224,415	$ (2,000)	$ (1,236)	$ (210,082)
Balance, shares at Dec. 31, 2016				42,243,075
[1]	Less than $1.
[2]	See Note 9B.

Consolidated Statements of Cha8

Consolidated Statements of Changes in Equity (Parenthetical) $ in Thousands	12 Months Ended
	Dec. 31, 2014USD ($)
Consolidated Statements of Changes in Equity [Abstract]
Stock issuance costs	$ 365

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015		Dec. 31, 2014
Cash flows from continuing operating activities
Net loss from continuing operations	$ (2,369)	$ (7,492)	[1]	$ (9,902)	[1]
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	239	463		875
Loss (gain) on sale of property and equipment	83	(4)		(10)
Gain from sale and shut down of subsidiaries				(3)
Accrued interest and linkage differences, net	56	27		87
Depreciation	1,172	1,224		1,263
Changes in operating assets and liabilities:
Accrued severance pay, net	(183)	(109)		(92)
Deferred tax, net	82	122		108
(Increase) decrease in trade receivables, net	(3,493)	2,020		460
Decrease in other receivables and prepaid expenses	290	394		149
(Increase) decrease in inventories	(112)	370		(484)
Increase (decrease) in trade payables	1,793	(1,298)		(588)
Increase (decrease) in other current liabilities	300	325		(1,283)
Net cash used in continuing operating activities	(2,142)	(3,958)		(9,420)
Cash flows from continuing investing activities
Purchase of property and equipment	(311)	(1,515)		(1,573)
Proceeds from sale of property, plant and equipment	1,779	38		14
Change in short-term investments, net	(116)	5,598		(8,466)
Investment in capitalized product costs	(188)	(200)
Investment in restricted deposit for employee benefits	(44)	(281)
Proceeds from restricted deposit for employee benefits	142	144
Net cash provided by (used in) continuing investing activities	1,262	3,784		(10,025)
Cash flows from continuing financing activities
Increase (decrease) in short-term bank credit, net	1,018	(422)		(25)
Proceeds from long-term bank loans	27	1,480		52
Repayment of long-term bank loans	(1,581)	(747)		(1,019)
Proceeds from issuance of shares, net of issuance expenses				10,444
Proceeds from exercise of options and warrants	177		[2]	965
Net cash (used in) provided by continuing financing activities	(359)	311		10,417
Cash flows from discontinued operations
Net cash used in discontinued operating activities	(283)	(581)		(1,632)
Net cash provided by discontinued investing activities	2,292	795		1,708
Net cash used in discontinued financing activities				(154)
Total net cash provided by (used in) discontinued operations	2,009	214		(78)
Effect of exchange rate changes on cash and cash equivalents	(268)	(252)		(505)
Increase (decrease) in cash and cash equivalents	502	99		(9,611)
Cash and cash equivalents at the beginning of the year	5,450	5,351		14,962
Cash and cash equivalents at the end of the year	5,952	5,450		5,351
Cash paid during the period for:
Interest paid	220	255		316
Income taxes paid	$ 27			$ 32
[1]	Reclassified to conform with the current period presentation, see Note 1B(3).
[2]	Less than $1.

General

General	12 Months Ended
	Dec. 31, 2016
General [Abstract]
General	Note 1 - General A. Introduction On Track Innovations Ltd. (the “Company”) was founded in 1990, in Israel. The Company and its subsidiaries (together the “Group”) are principally engaged in the field of design and development of cashless payment solutions. The Company’s ordinary shares are listed for trading on the NASDAQ Capital Market (formerly listed on the NASDAQ Global Market until April 13, 2016). At December 31, 2016, the Company operates in two operating segments, (a) Retail and Mass Transit Ticketing, and (b) Petroleum. See Note 14. During 2016, the Company sold its parking operating segment, see Note 1B. As to the Company’s major customers, see Note 15. Certain definitions $ - United States Dollars NIS - New Israeli Shekel B. 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, for a total purchase price of $10,000 in cash and an additional $12,500 subject to performance-based milestones (the “SmartID Division Divesture”). Accordingly, the results and the cash flows of this operation for all reporting periods are presented in the statements of operations and in the statements of cash flows, respectively, as discontinued operations separately from continuing operations. On April 20, 2016, the purchaser of the Smart ID division, SuperCom Ltd., or SuperCom, and the Company entered into a settlement agreement resolving certain litigation between SuperCom and the Company pursuant to which SuperCom paid the Company $2,050 and will agree to pay the Company up to $1,500 in accordance with and subject to a certain earn-out mechanism. For details in connection with contingent considerations recorded and received during the years ended December 31, 2016, 2015 and 2014, see Notes 12 and 2U. 2. During 2013, the Company reached an initial agreement, which eventually closed in February 2014, to sell its wholly owned German subsidiary, Intercard System Electronics GmbH, for a total purchase price of EURO 700 (approximately $960) and an additional immaterial contingent consideration based on future sales (the “German Subsidiary Divesture”). The results and the cash flows of this operation for the reporting periods are presented in the statements of operations and in the statements of cash flows, respectively, as discontinued operations separately from continuing operations. For further details see Notes 12 and 2U. The Company has not recorded any profit from contingent consideration pursuant to the German Subsidiary Divestiture as of December 31, 2016. 3. On September 14, 2016, the Company completed the sale of certain assets and IP related to its parking segment (the “Parking Business Divesture”) to Atrinet Ltd. and its affiliated entities for a non-material amount. The Company has determined that the sale of the parking business qualifies as a discontinued operation. 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 12). All prior periods’ information has been reclassified to conform with the current period’s presentation. The balance sheet as of December 31, 2015 was not reclassified to present assets and liabilities of the discontinued operation, due to immateriality.

Significant Accounting Policies

Significant Accounting Policies	12 Months Ended
	Dec. 31, 2016
Significant Accounting Policies [Abstract]
Significant Accounting Policies	Note 2 – Significant Accounting Policies The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The significant accounting policies followed in the preparation of the financial statements, applied on a consistent basis, are as follows: A. Financial statements in U.S. dollars Substantially all of the Company’s and certain of its subsidiaries’ revenues are in U.S. dollars. A significant portion of purchases of materials and components and most marketing costs are denominated in U.S. dollars. Therefore, both the functional and reporting currencies of the Company and certain of its subsidiaries are the U.S. dollar. Transactions and balances denominated in U.S. dollars are presented at their original amounts. For entities with a U.S. dollar functional currency, transactions and balances in other currencies are remeasured into U.S. dollars in accordance with the principles set forth in Accounting Standards Codification (“ASC”) Topic 830, Foreign Currency Matters The functional currencies of the remaining subsidiaries are their local currencies. The financial statements of those companies are translated into U.S. dollars using the exchange rate at the balance sheet date for assets and liabilities, and weighted average exchange rates for revenues and expenses (which approximates the translation of each transaction). Translation adjustments resulting from the process of the aforesaid translation are included as a separate component of equity (accumulated other comprehensive gain or loss). B. Principles of consolidation The consolidated financial statements include the financial statements of the Company, its wholly-owned subsidiaries and its majority owned subsidiaries. Intercompany transactions and balances have been eliminated in consolidation. C. Estimates and assumptions The preparation of the consolidated financial statements requires management of the Company to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the year. Such estimates include the valuation of useful lives of long-lived assets, revenue recognition, valuation of accounts receivable and allowance for doubtful accounts, valuation of inventories, legal contingencies, the assumptions used in the calculation of stock-based compensation, income taxes and other contingencies. Estimates and assumptions are periodically reviewed by management and the effects of any material revisions are reflected in the period that they are determined to be necessary. Actual results, however, may vary from these estimates. D. Cash equivalents Cash equivalents are short-term highly liquid investments and debt instruments that are readily convertible to cash with original maturities of three months or less from the date of purchase. E. Trade receivables Trade receivables are recorded at the invoiced amount and do not bear interest. Collections of trade receivables are included in net cash provided by operating activities in the consolidated statements of cash flows. The consolidated financial statements include an allowance for loss from receivables for which collection is in doubt. In determining the adequacy of the allowance consideration is given to each trade receivable historical experience, aging of the receivable, adjusted to take into account current market conditions and information available about specific debtors, including their financial condition, current payment patterns, the volume of their operations, and evaluation of the security received from them or their guarantors. F. Short-term investments Short-term investments consist of: (1) Bank deposits whose maturities are longer than three months from the date of purchase, but not longer than one year from the balance sheet date. (2) Bank deposits whose maturities are less than three months from the date of purchase, but are intended to be held as bank deposits for more than three months. (3) Restricted bank deposits whose maturities are not longer than one year from the balance sheet date (for further details, see Note 8C). G. Inventories Inventories are stated at the lower of cost or market value. Cost is determined by calculating raw materials, work in process and finished products on a “moving average” basis. Inventory write-offs are provided to cover risks arising from slow moving items or technological obsolescence. Such write-offs, which were not material for the reported years, have been included in cost of revenues. The Company applies ASC Topic 330, Inventory H. Property, plant and equipment, net Property, plant and equipment are stated at cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets as follows: Years Leasehold land (over the terms of the lease, see Note 5A(1)) 49 Buildings 25 Computers, software and manufacturing equipment 3-5 Office furniture and equipment 5-16 (mainly - 10) In circumstances where the Company sells property and leases that same property back, the Company evaluates whether the sale and leaseback are two transactions. If the leaseback is actively used by the Company, the buyer’s payment terms demonstrate the buyer’s investment in the property and there is no continuing involvement of the Company in the sold property, then two transactions are recorded: the property is disposed from the Company’s books and a lease expense is recognized (if an operating lease). If a loss or gain is recognized from the disposal of the property, such gain or loss is usually amortized over the leaseback period. In 2016, the Company entered into a sale and leaseback transaction – see Note 10A(1). Such loss was not amortized due to immateriality. I. Impairment of long-lived assets Long-lived assets, such as property, plant, and equipment, and intangible assets subject to amortization, are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset to be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by an asset to the carrying value of the asset. If the carrying value of the long-lived asset is not recoverable on an undiscounted cash flow basis, impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. J. Revenue recognition The Group generates revenues from product sales manufactured based on the Company’s technology. In addition, the Company generates revenues from the technology it developed through transaction fee arrangements, licensing agreements and patent litigation settlements, as part of its patent activity. Revenues are also generated from non-recurring engineering, customer services and technical support. Revenues from product sales and non-recurring engineering are recognized when delivery has occurred provided there is persuasive evidence of an agreement, the fee is fixed or determinable, collection of the related receivable is probable and no further obligations exist. In the case of non-recurring engineering, revenue is recognized upon completion of testing and approval of the customization of the product by the customer, provided that no further obligation exists. Revenues are recognized net of value added tax. License and transaction fees are recognized as earned based on actual usage. Usage is determined by receiving confirmation from the users. Patent litigation revenues are recognized upon final settlement of the litigation (see Note 14). The Company separates the settlement portion from the revenue element under the guidance of ASC Topic 605, Revenue Recognition Revenues relating to customer services and technical support are recognized as the services are rendered ratably over the term of the related contract. Licensing and transaction fees are recognized based on the volume of transactions or monthly licensing fees from systems that contain the Company’s products and usually bear no cost to the Company. The cost to the Company of warranting that the product will perform according to certain specifications and that the Company will repair or replace the product if it ceases to work properly, is insignificant and is treated according to accounting guidance for contingencies. K. Research, development costs and certification costs Research and development costs, which consist mainly of labor costs, materials and subcontractors, are charged to operations as incurred. According to ASC Topic 350, “ Intangibles - Goodwill and Other L. Stock-based compensation The Company measures and recognizes compensation expense for all stock-based payment awards made to employees and directors based on estimated grant date fair values. The estimated fair value of awards is charged to income on a straight-line basis over the requisite service period, which is generally the vesting period. ASC Topic 718, Compensation – Stock Compensation The Company elected to recognize compensation cost for awards with only service conditions that have a graded vesting schedule using the straight-line method. M. Basic and diluted net loss per share Basic and diluted net loss per ordinary share is computed based on the weighted average number of ordinary shares outstanding during each year. Shares issuable for little or no cash consideration, are considered outstanding ordinary shares and included in the computation of basic net loss per ordinary share as of the date that all necessary conditions have been satisfied. Stock options and warrants in the amounts of 1,644,836, 1,880,396 and 2,241,421 outstanding as of the year ended December 31, 2016, 2015 and 2014, respectively, have been excluded from the calculation of the diluted net loss per ordinary share because all such securities have an anti-dilutive effect for all periods presented. N. Fair value of financial instruments The Company’s financial instruments consist mainly of cash and cash equivalents, short-term interest bearing investments, accounts receivable, restricted deposits for employee benefits, accounts payable and short-term and long-term loans. Fair value for the measurement of financial assets and liabilities is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. The Company utilizes a valuation hierarchy for disclosure of the inputs for fair value measurement. This hierarchy prioritizes the inputs into three broad levels as follows: ● Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date. ● Level 2 Inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. ● Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at measurement date. By distinguishing between inputs that are observable in the market place, and therefore more objective, and those that are unobservable and therefore more subjective, the hierarchy is designed to indicate the relative reliability of the fair value measurements. A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The Company, in estimating fair value for financial instruments, determined that the carrying amounts of cash and cash equivalents, trade receivables, short-term bank credit and trade payables are equivalent to, or approximate their fair value due to the short-term maturity of these instruments. The carrying amounts of variable interest rate long-term loans are equivalent or approximate to their fair value as they bear interest at approximate market rates. At December 31, 2016, the fair value of bank loans with fixed interest rates did not differ materially from the carrying amount. O. Income tax The Company accounts for taxes on income in accordance with ASC Topic 740, Income Taxes The Company recognizes the effect of income tax positions only if those positions are more likely than not to be sustained. Recognized income tax positions are measured at the largest amount that is greater than 50 percent likely of being realized. The Company accounts for interest and penalties related to unrecognized tax benefits as a component of income tax expense. P. Non-controlling interest The Company implements ASC Topic 810, Consolidation Q. Severance pay The Company’s liability for severance pay for some of its Israeli employees is calculated pursuant to Israeli Severance Pay Law, 1963 (the “Israeli Severance Pay Law”) based on the most recent salary of the employee multiplied by the number of years of employment, as of the balance sheet date. Those employees are entitled to one month’s salary for each year of employment or a portion thereof. Certain senior executives were entitled to receive additional severance pay. The Company records the liability as if it were payable at each balance sheet date on an undiscounted basis. The liability is classified based on the expected date of settlement, and therefore is usually classified as a long-term liability, unless the cessation of the employees is expected during the upcoming year. The Company’s liability for those Israeli employees is partially provided for by monthly deposits for insurance policies and the remainder by an accrual. The value of these policies is recorded as an asset in the Company’s balance sheet. The deposited funds include profits and losses accumulated up to the balance sheet date. The deposited funds may be withdrawn only upon the fulfillment of the obligation pursuant to the Israeli Severance Pay Law or labor agreements. The value of the deposited funds is based on the cash redemption value of these policies. In addition, the Company has deposited certain amounts with a trustee, to compensate for any severance pay liability that is not covered by other funds. These deposits are restricted and may be withdrawn only for payment of severance pay liabilities. The severance pay funds and the restricted deposits for employee benefits are classified based on the classification of the corresponding liability. In respect of other Israeli employees, the Company acts pursuant to the general approval of the Israeli Ministry of Labor and Welfare, pursuant to the terms of Section 14 of the Israeli Severance Pay Law, according to which the current deposits with the pension fund and/or with the insurance company exempt the Company from any additional obligation to these employees for whom the said depository payments are made. These deposits are accounted as defined contribution payments. Severance pay expenses for the years ended December 31, 2016, 2015 and 2014 amounted to $227, $331 and $370, respectively. Defined contribution plan expenses were $182, $273 and $319 in the years ended December 31, 2016, 2015 and 2014, respectively. R. Advertising expenses Advertising expenses are charged to the statements of operations as incurred. Advertising expenses for the years ended December 31, 2016, 2015 and 2014 amounted to $1,142, $1,249 and $1,327, respectively. S. Concentrations of credit risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash equivalents, bank deposits and trade receivables. Cash equivalents are invested mainly in U.S. dollars with major banks in Israel and Europe. Management believes that the financial institutions that hold the Group’s investments are financially sound and, accordingly, minimal credit risk exists with respect to these investments. Most of the Company’s trade receivables are derived from sales to large and financially secure organizations. In determining the adequacy of the allowance, management bases its opinion, inter alia, on the estimated risks, current market conditions and in reliance on available information with respect to the debtor’s financial position. As for major customers, see Note 15. The activity in the allowance for doubtful accounts for the years ended December 31, 2016, 2015 and 2014 is as follows: 2016 2015 2014 Allowance for doubtful accounts at beginning of year $ 778 $ 671 $ 610 Additions charged to allowance for doubtful accounts 147 138 88 Write-downs charged against the allowance (205 ) (31 ) (27 ) Allowance for doubtful accounts at end of year $ 720 $ 778 $ 671 T. Commitments and contingencies Liabilities for loss contingencies arising from claims, assessments, litigations, fines and penalties and other sources are recognized when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. Gain contingencies are recognized only when final settlement is reached. U. Business divestures As described in Note 1B, the Company has sold certain operations. Upon reaching a definitive agreement with an acquirer, the Company recognizes the consideration received from the divesture, less all assets and liabilities sold, as a gain or loss. Discontinued operations Upon divesture of a business, the Company classifies such business as a discontinued operation, if the divested business represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. For disposals other than by sale such as abandonment, the results of operations of a business would not be recorded as a discontinued operation until the period in which the business is actually abandoned. The SmartID Division Divesture, the German Subsidiary Divesture and the Parking Business Divesture qualify as discontinued operations and therefore have been presented as such. The results of businesses that have qualified as discontinued operations have been presented as such for all reporting periods. Results of discontinued operations include all revenues and expenses directly derived from such businesses; general corporate overhead is not allocated to discontinued operations. Any loss or gain that arose from the divesture of a business that qualifies as discontinued operations has been included within the results of the discontinued operations. The Company also presents cash flows from discontinued operations separately from cash flows of continuing operations. Contingent consideration The Company’s sale arrangements consist of contingent consideration based on the divested businesses’ future sales or profits. The Company records the contingent consideration portion of the arrangement when the consideration is determined to be realizable. V. Patent litigation and maintenance expenses Patent litigation and maintenance expenses, which consist mainly of salaries and consultants’ fees, are expensed as incurred. The Company presents such expenses, excluding expenses associated directly with revenues from a litigation settlement agreement that contains a license agreement, as a separate item within its operating expenses because it believes that such presentation improves the understandability of the statement of operations. Expenses associated directly with revenues from a litigation settlement agreement that contains a license agreement are presented within ‘cost of licensing’ as mentioned in Note 2J. W. Recent accounting pronouncements 1. On May 28, 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) 2. In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern 3. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330), Simplifying the Measurement of Inventory (ASU 2015-11) 4. In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740) Balance Sheet Classification of Deferred Taxes, 5. In February 2016, the FASB issued authoritative guidance which requires lessees to recognize on the balance sheet assets and liabilities for leases with lease terms of more than 12 months. Consistent with current GAAP, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. However, unlike current GAAP—which requires only capital leases to be recognized on the balance sheet—the new guidance will require both types of leases to be recognized on the balance sheet. The guidance will take effect for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. This guidance shall be applied at the beginning of the earliest period presented using the modified retrospective approach, which includes a number of practical expedients that an entity may elect to apply. Early application of the guidance is permitted. The Company is evaluating the adoption of this guidance and the potential effects on the consolidated financial statements. 6. On March 30, 2016, the FASB issued ASU 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. 7. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, addressing eight specific cash flow issues in an effort to reduce diversity in practice. The amended guidance is effective for fiscal years beginning after December 31, 2017, and for interim periods within those years. Early adoption is permitted. The Company currently does not expect that adoption of ASU 2016-15 to have a material impact on its consolidated financial statements. 8. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (ASC 230): Restricted Cash, which requires that amounts generally described as restricted cash and restricted cash equivalents be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The standard will be effective for annual periods beginning after December 31, 2017 and interim periods within that reporting period. The Company currently does not expect the adoption of this accounting standard to have a material impact on its consolidated statements of cash flows. 9. In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326) provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in this Update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates . The amendments affect entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off-balance-sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018. The Company currently does not expect the adoption of this accounting standard to have a material impact on its consolidated financial statements.

Short-Term Investments

Short-Term Investments	12 Months Ended
	Dec. 31, 2016
Short-Term Investments [Abstract]
Short-term investments	Note 3 – Short-term investments: Balances at December 31, 2016 and 2015 consist of bank deposits which bear weighted average annual interest of 0.7% and 0.59%, respectively. See Note 8C as to restrictions on certain deposits.

Other Receivables and Prepaid E

Other Receivables and Prepaid Expenses	12 Months Ended
	Dec. 31, 2016
Other Receivables and Prepaid Expenses [Abstract]
Other Receivables and Prepaid Expenses	Note 4 - Other Receivables and Prepaid Expenses December 31 2016 2015 Government institutions $ 322 $ 463 Prepaid expenses 526 624 Receivables under contractual obligations to be transferred to others * 346 533 Other receivables 444 563 $ 1,638 $ 2,183 * The Company’s subsidiary in Poland is required to collect certain fees that are to be transferred to local authorities.

Property, Plant and Equipment,

Property, Plant and Equipment, Net	12 Months Ended
	Dec. 31, 2016
Property, Plant and Equipment, Net [Abstract]
Property, Plant and Equipment, Net	Note 5 - Property, Plant and Equipment, Net A. Consist of: December 31 2016 2015 Cost Leasehold land (1) $ - $ 272 Buildings on leasehold land (1) - 4,357 Buildings 907 790 Computers, software and manufacturing equipment 14,769 16,124 Office furniture and equipment 251 793 Motor vehicles 323 318 Total cost 16,250 22,654 Total accumulated depreciation 10,462 13,986 $ 5,788 $ 8,668 (1) As of December 31, 2015, the leasehold land consisted of two plots owned by the Israel Lands Administration. Rights to leasehold land on the first plot extend over the original period of 49 years ending in the year 2041 with an option to extend for an additional 49 years, and on the second plot for a period of 49 years, which will end in the year 2047 with an option to extend for a further 49 years. The amount includes payments on account of land development and payments of the capitalization of leasing payments. The rent for the initial 49-year term of each of these leases was prepaid in its entirety at the beginning of the lease terms as is customary in Israel for leases of property for industrial purposes from the Israel Lands Administration. During 2016, the Company sold its headquarters building in Rosh Pina, Israel and located on the above mentioned leasehold land. See also Note 10A.1. B. As to liens - See Note 8C. C. Depreciation expenses amounted to $1,172, $1,224 and $1,263 for the years ended December 31, 2016, 2015 and 2014, respectively.

Other Current Liabilities

Other Current Liabilities	12 Months Ended
	Dec. 31, 2016
Other Current Liabilities [Abstract]
Other Current Liabilities	Note 6 - Other Current Liabilities December 31 2016 2015 Employees and related expenses $ 1,011 $ 1,065 Accrued expenses 1,473 1,101 Customer advances 249 283 Other current liabilities 89 275 $ 2,822 $ 2,724

Bank Loans

Bank Loans	12 Months Ended
	Dec. 31, 2016
Bank Loans [Abstract]
Bank Loans	Note 7 - Bank Loans A. Composition of long-term loans: December 31 2016 2015 Long-term loans $ 1,827 $ 3,395 Less - current maturities 612 1,036 $ 1,215 $ 2,359 As of December 31, 2016, the bank loans are denominated in the following currencies: Polish Zloty ($1,176; matures in 2017-2019) and South African Rand ($651; matures in 2017-2023). As of December 31, 2016, these loans bear interest at rates ranging from 3.6%-10.5% per annum. B. Repayment dates of long-term loans subsequent to December 31, 2016: 2017 $ 612 2018 495 2019 311 2020 105 2021 99 Thereafter 205 $ 1,827 C. Composition of short-term loans, bank credit and current maturities of long-term loans: December 31 December 31 2016 2015 2016 2015 % % Interest rate In U.S. Dollars 4.36 4.92 $ 2,102 $ 1,357 In Polish Zloty 3.60 3.15 953 729 In NIS 4.35 4.35 702 693 3,757 2,779 Current maturities of long-term loans 612 1,036 $ 4,369 $ 3,815 The weighted average interest rate of the short-term bank credit for the years ended December 31, 2016 and 2015 were 4.05% and 4.35%, respectively. D. Liens for short-term and long-term borrowings - see Note 8C. E. As of December 31, 2016, the Group has authorized and used credit lines of $4,048 and $3,757, respectively. F On November 4, 2014, the Company signed a financial and restrictive covenant with Bank Leumi L’Israel, or Bank Leumi, in order to secure bank services and obtain bank credit and loans. On September 19, 2016, the Company received a definitive release from Bank Leumi from any financial and restrictive covenants.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2016
Commitments and Contingencies [Abstract]
Commitments and Contingencies	Note 8 - Commitments and Contingencies A. Commitments and Contingencies: The Company has entered into several research and development agreements, pursuant to which the Company received grants from the Government of Israel, and are therefore obligated to pay royalties to the Government of Israel at a rate of 3.5% of its sales up to the amounts granted (linked to the U.S. dollar with annual interest at LIBOR as of the date of approval, for programs approved from January 1, 1999 and thereafter). The total amount of grants received until December 31, 2016, net of royalties paid, was approximately $3,500 (including accrued interest). No grants from the Government of Israel were received during the three-year period ended December 31, 2016. Royalties expenses amounted to $423, $356 and $406 for the years ended December 31, 2016, 2015 and 2014, respectively, and were charged to cost of revenues. B. Leases The Group operates from leased facilities in the United States, Israel, Poland and South Africa, leased for periods expiring in years 2017 through 2021. Minimum future rentals of premises under non-cancelable operating lease agreements at rates in effect as of December 31, 2016 are as follows: 2017 335 2018 275 2019 107 2020 87 2021 66 $ 870 Rent expenses amounted to $313, $368 and $382 for the years ended December 31, 2016, 2015 and 2014, respectively. C. Liens The Company and certain subsidiaries have recorded floating charges on all of its tangible assets in favor of banks. The Company’s and certain subsidiaries’ manufacturing facilities and certain equipment have been pledged as security in respect of a loan received from a bank. The Company’s short-term deposits in the amount of $1,548 have been pledged as security in respect of guarantees granted and in respect of loans and credit lines received from a bank . D. Guarantees As of December 31, 2016, the Company granted performance guarantees and guarantees to secure customer advances in the sum of $543. The expiration dates of the guarantees range from February 2017 to June 2019. E. Legal claims 1. In June 2013, prior to the Company’s divestiture of its SmartID division, Merwell Inc. 2. On October 3, 2013, a financial claim was filed against the Company and its then French subsidiary, Parx France ( referred to in this paragraph, collectively, as the Defendants ), in the Commercial Court of Paris, France. The sum of the claim is Euro 1,500 (approximately $1,578), 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 all the plaintiff’s allegations and claims. 3. On March 1, 2017, a claim was filed in the U.S. District Court, Eastern District of Pennsylvania against the Company and its U.S. subsidiary, OTI America Inc. by USA Technologies Inc., or USAT. The claim asserts, among other things, that products sold by the Company to USAT’s manufacturing subcontractor, Masterwork Electronics, Inc., or Masterwork, fail to conform to promised specifications in that they do not include Apple Value Added Services, or VAS, an add-on feature to Apple Pay which is not yet offered on the Company’s products. USAT seeks payment of $4,913 plus interest and costs, comprised of $729 to cover payment for alternative products, and $4,184 to cover costs of replacing the allegedly non-conforming products already installed. The Company denies the claims asserted by USAT and intends to defend the complaint vigorously. Based on the advice of counsel, the Company currently believes that it has no obligations to USAT. On March 3, 2017, the Company filed a lawsuit against Masterwork in the U.S. District Court for the Northern District of California. The Company seeks payment of $2,518 plus interest and costs as a result of Masterwork’s refusal to perform its obligations in connection with a purchase order supplied by Masterwork to the Company, based on Masterwork’s allegations that its customer, USAT, had apparently claimed that the products do not include the VAS feature requested by USAT, though such feature is currently not offered by the Company and was not specified in the purchase order. The products subject to USAT’s litigation mentioned above include the products subject to the purchase order referred to in the Company’s claim against Masterwork.

Equity

Equity	12 Months Ended
	Dec. 31, 2016
Equity [Abstract]
Equity	Note 9 – Equity A. Share capital On November 28, 2014, the Company closed a firm commitment underwritten public offering of 7,187,500 ordinary shares, including shares issued pursuant to the underwriter’s over-allotment option, at a public offering price of $1.60 per share. The proceeds to the Company, net of issuance costs and underwriter discount, were approximately $10,444. B. Shares to non-employees During 2016, the Company granted 15,000 ordinary shares to one of its consultants. The expenses that are recognized due to this grant are immaterial and is presented within ’stock-based compensation’ in the statement of changes in equity for 2016. C. Stock option plans In February 2001, the Board approved an option plan, under which up to 75,000 share options are to be granted to the Company’s employees, directors and consultants and those of the Company’s subsidiaries and affiliates. During the years 2002 to 2012, the Board approved an increase of 13,125,000 shares options to be reserved under the Company’s share option plan. On October 22, 2013, the Board approved a further increase of 2,500,000 options to be reserved under the Company’s share option plan. On June 17, 2014, the Board approved a further increase of 750,000 options to be reserved under the Company’s share option plan. The vesting period for the options ranges from immediate vesting to ratable vesting over a four- year period. The exercise price of options under the plan is at varying prices. Those options expire up to five years after the date of the grant. Any options which are forfeited or cancelled before expiration become available for future grants. The fair value of each option granted to employees during 2016, 2015 and 2014, for which the exercise price was greater than par value, was estimated on the date of grant, using the Black-Scholes model and the following assumptions: 1. Dividend yield of zero percent for all periods. 2. Risk-free interest rate of, 0.97%-1.42%, 1.21%-1.32%, 0.79%-1.05% for 2016, 2015 and 2014, respectively, based on U.S. Treasury yield curve in effect at the time of grant. 3. Estimated expected lives of 2.5-4 years for all periods according to simplified method. 4. Expected average volatility of 71%-75%, 69%-71%, 64%-67% for 2016, 2015 and 2014, respectively, which represent a weighted average standard deviation rate for the price of the Company’s ordinary shares on NASDAQ. The Company’s options activity during 2016 (including options to non-employees) and information as to options outstanding and options exercisable as of December 31, 2015 and 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 680,000 0.95 Options expired or forfeited (499,283 ) 2.08 Options exercised (177,260 ) 1.00 Outstanding – December 31, 2016 1,604,836 $ 1.36 Exercisable as of: December 31, 2015 799,473 $ 1.85 December 31, 2016 591,017 $ 1.83 The weighted average grant date fair value of options granted is $0.95, $1.01 and $1.09 per option during 2016, 2015 and 2014, respectively. The aggregate intrinsic value of outstanding options at December 31, 2016 is $909. The aggregate intrinsic value of exercisable options at December 31, 2016 is $166. The following table summarizes information about options outstanding and exercisable (including options to non-employees) as of December 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 December 31, contractual Exercise December 31, contractual Exercise exercise price 2016 life (years) Price 2016 life (years) Price $ 0.44-0.90 626,668 3.79 $ 0.76 153,337 3.07 $ 0.79 1.07-1.20 420,000 4.81 1.07 10,000 0.41 1.20 1.46 50,000 1.55 1.46 50,000 1.55 1.46 1.68-1.76 65,000 2.14 1.69 35,000 1.41 1.70 2.32-2.36 403,168 1.50 2.34 322,680 1.28 2.34 $ 3.03 40,000 2.73 $ 3.03 20,000 2.73 $ 3.03 1,604,836 3.32 591,017 1.81 The total exercise date intrinsic value of options exercised during the years ended December 31, 2016, 2015 and 2014, was $45, $0 and $1,096, respectively. As of December 31, 2016, there was $485 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 1.32 years. The total fair value of shares vested during the year ended December 31, 2016 was $187. During 2016, 2015 and 2014, the Company recorded stock-based compensation expenses in the amount of $239, $463 and $875, respectively, in accordance with ASC 718. D. Warrants 1. During 2016, 281,369 warrants expired and 36,142 warrants were exercised into ordinary shares, with no consideration received by the Company. 2. During 2016, the Company issued 40,000 warrants to one of its consultants, with a per share exercise price of $0.95. The warrants expire during 2019. E. Change in the ownership rate During 2015, the ownership rate (the both direct and indirect ownership rate) of the Company in its subsidiaries, PARX Ltd. and Easy Park Ltd., decreased to 90.7% and to 85.5%, respectively. The Consolidated Statement of Changes in Equity for the year ended December 31, 2015 includes classification between Non-controlling interest and additional paid-in capital of $1,228 due to this decrease in the ownership rate. During 2016, the Company bought out the minority interest in its subsidiaries that operated the Parking Business, PARX Ltd. and Easy Park Ltd., in consideration of $69. In addition to the payment of $69, the Consolidated Statement of Changes in Equity for the year ended December 31, 2016 includes classification between Non-controlling interest and additional paid-in capital of $1,851 due to this increase in the ownership rate.

Supplemental Statement of Opera

Supplemental Statement of Operations Data	12 Months Ended
	Dec. 31, 2016
Supplemental Statement of Operations Data [Abstract]
Supplemental statement of operations data	Note 10 – Supplemental statement of operations data A. Other expenses (income), net Consists of : Year ended December 31 Year ended December 31 Year ended December 31 2016 2015 2014 (Gain) loss on sale of property and equipment, net (1) 83 (4 ) (10 ) Cessation of employment agreements (2) 108 578 - Consulting fees - 340 - Sundry - - (3 ) Other expenses (income), net $ 191 $ 914 $ (13 ) 1 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 consideration of NIS 7,000 (approximately $1,848) 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 $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. 2 During 2015, the Company recorded compensation expenses related to the cessation of employment of the Company’s former Chief Executive Officer and related to the cessation of employment of the Company’s former Chief Executive Officer of the U.S. subsidiary. During 2016, the Company recorded compensation expenses related to the cessation of employment of the Company’s former Chief Financial Officer and former General Counsel and Company Secretary.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2016
Income Taxes [Abstract]
Income Taxes	Note 11 - Income Taxes A. The Company and its Israeli subsidiaries 1. Measurement of taxable income under the Income Tax (Inflationary Adjustments) Law, 1985 The Company and one of its Israeli subsidiaries are foreign invested companies, and have elected, commencing January 1, 2007, to maintain their books and records in U.S. dollars for income tax purposes, as permitted under the tax regulations. 2. The Law for the Encouragement of Industry (taxes), 1969 The Company believes that it qualifies as an “Industrial Company” under the Law for the Encouragement of Industry. The principal tax benefits for the Company are the deductibility of costs in connection with public offerings and amortization of certain intangibles. 3. Corporate tax rate Presented hereunder are the standard tax rates in Israel in the years 2014-2016: 2016 – 25% 2014-2015 – 26.5% Current taxes for the reported periods are calculated according to the tax rates presented above. On January 4, 2016, the statutory tax rate was changed to 25% following a reduction of a corporate tax by the Israeli government. Furthermore, on December 22, 2016, the Israeli government passed a law under which the corporate tax rate will be reduced from 25% to 23% in two steps. The first reduction will be to a rate of 24% as from January 2017 and the second reduction will be to a rate of 23% as from January 2018. The deferred tax balances as at December 31, 2016 were calculated according to the new tax rates, at the tax rate expected to apply on the date of reversal. 4. Benefits under the Law for the Encouragement of Capital Investments According to the Law for the Encouragement of Capital Investments – 1959 (“the Law”), as amended, two tax tracks exist, a preferred enterprise and a special preferred enterprise, which mainly provide a uniform and reduced tax rate for all the company’s income entitled to benefits. T he tax rates on preferred income as from the 2014 tax year are as follows: 9% for Development Area A and 16% for the rest of the country. On December 22, 2016, the Israeli parliament passed a law that reduces the tax rate on preferred income for companies located in Development Area A from 9% to 7.5%, commencing on January 1, 2017. The Law also provides that no tax will apply to a dividend distributed out of preferred income to a shareholder that is an Israeli resident company. A tax rate of 20% shall apply to a dividend distributed out of preferred income to an individual shareholder or foreign resident, subject to double taxation prevention treaties. The Company currently meets the conditions provided in the Law for inclusion in the scope of the tax benefits track. B. Non-Israeli subsidiaries are taxed based on the income tax laws in their country of residence. C. Deferred income taxes: December 31 December 31 2016 2015 Deferred tax assets: Operating loss carryforwards $ 45,450 $ 51,120 Other 1,000 1,311 Total gross deferred tax assets 46,450 52,431 Less – valuation allowance (46,450 ) (52,431 ) Net deferred tax assets $ - $ - Deferred tax liability - Other (373 ) (352 ) Net deferred tax liability $ (373 ) $ (352 ) The net changes in the total valuation allowance for each of the years ended December 31, 2016, 2015 and 2014, are comprised as follows: Year ended December 31 2016 2015 2014 Balance at beginning of year $ 52,431 $ 50,450 $ 42,691 Additions during the year from Continuing operations 797 2,047 2,271 Changes due to amendments to tax laws and applicable future tax rates, see Note 11A(3) (6,408 ) - - Discontinued operations - see Note 1B (382 ) (67 ) 5,483 Other changes 12 1 5 Balance at end of year $ 46,450 $ 52,431 $ 50,450 In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets depends on the generation of future taxable income during the periods in which those temporary differences or carry-forwards are deductible. Based on the level of historical taxable losses, management has reduced the deferred tax assets with a valuation allowance to the amount it believes is more likely than to be realized. D. As of December 31, 2016, the operating loss carry-forwards and capital loss carry-forwards relating to Israeli companies amounted to $168,090 and $23,433 respectively. Operating losses in Israel may be carried forward indefinitely to offset against future taxable operational income. Under the Income Tax (Inflationary Adjustments) Law, 1985, and based on the Company’s election (see Note 11A(1)), tax loss carry-forwards are denominated in U.S. dollars. Net operating losses relating to non-Israeli companies aggregate $3,551, which will expire as follows: 2026 - $2,963 and 2027- $533. The remaining balance of $55 can be utilized with no expiration date. E. The Company has not recognized a deferred tax liability for the undistributed earnings of its foreign subsidiaries that arose in 2016 and prior years, because the Company considers these earnings to be indefinitely reinvested. These undistributed earnings will be taxed upon distribution, if at all. A deferred tax liability will be recognized when the Company can no longer demonstrate that it plans to indefinitely reinvest these undistributed earnings. As of December 31, 2016, the undistributed earnings of these foreign subsidiaries were $3,738. It is impracticable to determine the additional taxes payable when these earnings are remitted. F. No current or net deferred taxes were recorded in Israel. Non-Israeli income tax (expense) benefit included in the consolidated statements of operations are as follows: Year ended December 31 2016 2015 2014 Current $ (24 ) $ - $ (2 ) Deferred (58 ) (122 ) (108 ) Income tax expense $ (82 ) $ (122 ) $ (110 ) Income tax expense for the years ended December 31, 2016, 2015 and 2014, differed from the amounts computed by applying the Israeli statutory tax rates of 25%, 26.5% and 26.5% to loss from continuing operations before taxes on income, as a result of the following: Year ended December 31 2016 2015 2014 Computed “expected” income tax benefit $ 572 $ 1,953 $ 2,595 Decrease in income tax benefit resulting from: Change in valuation allowance, net (797 ) (2,047 ) (2,271 ) Nondeductible stock-based compensation related to options issued to employees (60 ) (123 ) (232 ) Other nondeductible expenses (16 ) (96 ) (113 ) Tax from previous years 143 - - Other 76 191 (89 ) Reported income tax expense $ (82 ) $ (122 ) $ (110 ) G. Income (loss) from continuing operations before taxes on income consists of the following: Year ended December 31 2016 2015 2014 Israel $ (2,924 ) $ (7,683 ) $ (10,138 ) Non-Israel 637 313 346 $ (2,287 ) $ (7,370 ) $ (9,792 ) H. Unrecognized tax benefits As of December 31, 2016, 2015 and 2014, the Company did not have any unrecognized tax benefits. In addition, the Company does not expect that the amount of unrecognized tax benefits will change significantly within the next twelve months. For the years ended December 31, 2016, 2015 and 2014, no interest and penalties related to unrecognized tax benefits have been accrued. The Company and its major subsidiaries file income tax returns in Israel, Poland and South Africa. With few exceptions, the income tax returns of the Company and its major subsidiaries are open to examination by the Israeli and the respective foreign tax authorities for the tax years beginning in 2011.

Discontinued Operations

Discontinued Operations	12 Months Ended
	Dec. 31, 2016
Discontinued Operations [Abstract]
Discontinued operations	Note 12 – Discontinued operations As described in Note 1B, the Company divested its interest in the SmartID division, its interest in the German subsidiary and its Parking Business, and presented these activities as discontinued operations. During the years ended December 31, 2016, 2015 and 2014, the Company recorded and received profit from contingent consideration in the amount of $209, $848 and $1,013, respectively, according to an earn out mechanism derived from the Smart ID Division Divesture. This profit is presented as ‘other income, net’ within income from discontinued operations for the years ended December 31, 2016, 2015 and 2014. loss in amount of $111 which derives from the Parking Business divesture, including transaction costs. Set forth below are the results of the discontinued operations: Year ended December 31 2016 2015 2014 Revenues $ 768 $ 1,389 $ 3,527 Expenses (1,319 ) (1,984 ) (4,513 ) Other income, net 2,060 848 1,006 Net income from discontinued operations $ 1,509 $ 253 $ 20

Related Party Balances and Tran

Related Party Balances and Transactions	12 Months Ended
	Dec. 31, 2016
Related Party Balances and Transactions [Abstract]
Related Party Balances and Transactions	Note 13 - Related Party Balances and Transactions Transactions During the years ended December 31, 2016, 2015 and 2014, the Company had no related party transactions. Balances As of December 31, 2016 and 2015, the Company has no related party balances.

Operating Segments

Operating Segments	12 Months Ended
	Dec. 31, 2016
Operating Segments [Abstract]
Operating Segments	Note 14 - Operating segments In view of how the Company’s chief operating decision maker (“CODM”) reviews operating results for the purposes of allocating resources and assessing performance, the Company currently reports two segments which are the Group’s strategic business units: (a) Retail and Mass Transit Ticketing, and (b) Petroleum. The following summary describes the operations in each of the Group’s operating segments: ● Retail and Mass Transit Ticketing - includes selling and marketing variety of products for cashless payment solutions for the retail market and mass transit ticketing. ● Petroleum - includes manufacturing and selling of fuel payment and management solutions. The Company’s solution is a wireless, cashless, cardless and paperless refueling tracking and payment solution, providing customers with maximum flexibility and security. In addition to its two reportable segments, certain products for the medical industry and other secure smart card solutions are classified under "Other". 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 Company had previously reported on a third operating segment, the Parking segment, which was divested during 2016. See Note 1B. The Company presented hereunder its segment results for the years ended December 31, 2015 and 2014 to conform to the current year segment reporting. The strategic business unit’s allocation of resources and evaluation of performance are managed separately. The CODM does not examine assets or liabilities for those segments and therefore they are not presented. Information regarding the results of each reportable segment is included below based on the internal management reports that are reviewed by the CODM. Year ended December 31, 2016 Retail and Mass Transit Ticketing Petroleum Other Consolidated Revenues 14,124 (**) 4,122 2,318 20,564 Reportable segment gross profit * 7,463 2,365 1,112 10,940 Reconciliation of reportable segment gross profit to profit for the period Depreciation (733 ) Stock-based compensation (4 ) Gross profit for the period $ 10,203 F-34 On Track Innovations Ltd. and Subsidiaries Notes to the Consolidated Financial Statements In thousands, except share and per share data Note 14 - Operating segments (cont’d) Year ended December 31, 2015 Retail and Mass Transit Ticketing Petroleum Other Consolidated Revenues 11,510 (**) 4,386 2,576 18,472 Reportable segment gross profit * 6,482 2,353 1,190 10,025 Reconciliation of reportable segment gross profit to profit for the period Depreciation (733 ) Stock-based compensation (34 ) Gross profit for the period $ 9,258 Year ended December 31, 2014 Retail and Mass Transit Ticketing Petroleum Other Consolidated Revenues 15,042 3,838 1,790 20,670 Reportable segment gross profit * 7,143 2,213 939 10,295 Reconciliation of reportable segment gross profit to profit for the period Depreciation (729 ) Stock-based compensation (35 ) Gross profit for the period $ 9,531 * 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 years ended December 31, 2016 and 2015 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.

Geographic Information and Majo

Geographic Information and Major Customers	12 Months Ended
	Dec. 31, 2016
Geographic Information and Major Customers [Abstract]
Geographic Information and Major Customers	Note 15 - Geographic Information and Major Customers The data is presented in accordance with ASC Topic 280, “ Disclosures About Segments of an Enterprise and Related Information. Year ended December 31 2016 2015 2014 Revenues by geographical areas from external customers Americas $ 9,984 $ 7,886 $ 8,722 Asia 286 500 1,077 Africa 4,122 3,970 3,865 Europe 5,890 5,585 6,229 Total export 20,282 17,941 19,893 Domestic (Israel) 282 531 777 $ 20,564 $ 18,472 $ 20,670 December 31 December 31 2016 2015 Long lived assets by geographical areas Domestic (Israel) $ 610 $ 2,595 Poland 4,486 5,379 South Africa 900 796 America 70 78 $ 6,066 $ 8,848 Major Customers Year ended December 31 2016 2015 2014 % % % Major Customers by percentage from total revenues Customer A (*) 17 % 16 % 25 % Customer B (*) 15 % 16 % 16 % (*) The revenues derived from the both customers are presented within the revenues from the Retail and Mass Transit Ticketing.

Significant Accounting Polici25

Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2016
Significant Accounting Policies [Abstract]
Financial Statements in U.S. dollars	A. Financial statements in U.S. dollars Substantially all of the Company’s and certain of its subsidiaries’ revenues are in U.S. dollars. A significant portion of purchases of materials and components and most marketing costs are denominated in U.S. dollars. Therefore, both the functional and reporting currencies of the Company and certain of its subsidiaries are the U.S. dollar. Transactions and balances denominated in U.S. dollars are presented at their original amounts. For entities with a U.S. dollar functional currency, transactions and balances in other currencies are remeasured into U.S. dollars in accordance with the principles set forth in Accounting Standards Codification (“ASC”) Topic 830, Foreign Currency Matters The functional currencies of the remaining subsidiaries are their local currencies. The financial statements of those companies are translated into U.S. dollars using the exchange rate at the balance sheet date for assets and liabilities, and weighted average exchange rates for revenues and expenses (which approximates the translation of each transaction). Translation adjustments resulting from the process of the aforesaid translation are included as a separate component of equity (accumulated other comprehensive gain or loss).
Principles of consolidation	B. Principles of consolidation The consolidated financial statements include the financial statements of the Company, its wholly-owned subsidiaries and its majority owned subsidiaries. Intercompany transactions and balances have been eliminated in consolidation.
Estimates and assumptions	C. Estimates and assumptions The preparation of the consolidated financial statements requires management of the Company to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the year. Such estimates include the valuation of useful lives of long-lived assets, revenue recognition, valuation of accounts receivable and allowance for doubtful accounts, valuation of inventories, legal contingencies, the assumptions used in the calculation of stock-based compensation, income taxes and other contingencies. Estimates and assumptions are periodically reviewed by management and the effects of any material revisions are reflected in the period that they are determined to be necessary. Actual results, however, may vary from these estimates.
Cash equivalents	D. Cash equivalents Cash equivalents are short-term highly liquid investments and debt instruments that are readily convertible to cash with original maturities of three months or less from the date of purchase.
Trade receivables	E. Trade receivables Trade receivables are recorded at the invoiced amount and do not bear interest. Collections of trade receivables are included in net cash provided by operating activities in the consolidated statements of cash flows. The consolidated financial statements include an allowance for loss from receivables for which collection is in doubt. In determining the adequacy of the allowance consideration is given to each trade receivable historical experience, aging of the receivable, adjusted to take into account current market conditions and information available about specific debtors, including their financial condition, current payment patterns, the volume of their operations, and evaluation of the security received from them or their guarantors.
Short-term investments	F. Short-term investments Short-term investments consist of: (1) Bank deposits whose maturities are longer than three months from the date of purchase, but not longer than one year from the balance sheet date. (2) Bank deposits whose maturities are less than three months from the date of purchase, but are intended to be held as bank deposits for more than three months. (3) Restricted bank deposits whose maturities are not longer than one year from the balance sheet date (for further details, see Note 8C).
Inventories	G. Inventories Inventories are stated at the lower of cost or market value. Cost is determined by calculating raw materials, work in process and finished products on a “moving average” basis. Inventory write-offs are provided to cover risks arising from slow moving items or technological obsolescence. Such write-offs, which were not material for the reported years, have been included in cost of revenues. The Company applies ASC Topic 330, Inventory
Property, plant and equipment, net	H. Property, plant and equipment, net Property, plant and equipment are stated at cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets as follows: Years Leasehold land (over the terms of the lease, see Note 5A(1)) 49 Buildings 25 Computers, software and manufacturing equipment 3-5 Office furniture and equipment 5-16 (mainly - 10) In circumstances where the Company sells property and leases that same property back, the Company evaluates whether the sale and leaseback are two transactions. If the leaseback is actively used by the Company, the buyer’s payment terms demonstrate the buyer’s investment in the property and there is no continuing involvement of the Company in the sold property, then two transactions are recorded: the property is disposed from the Company’s books and a lease expense is recognized (if an operating lease). If a loss or gain is recognized from the disposal of the property, such gain or loss is usually amortized over the leaseback period. In 2016, the Company entered into a sale and leaseback transaction – see Note 10A(1). Such loss was not amortized due to immateriality.
Impairment of long-lived assets	I. Impairment of long-lived assets Long-lived assets, such as property, plant, and equipment, and intangible assets subject to amortization, are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset to be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by an asset to the carrying value of the asset. If the carrying value of the long-lived asset is not recoverable on an undiscounted cash flow basis, impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary.
Revenue recognition	J. Revenue recognition The Group generates revenues from product sales manufactured based on the Company’s technology. In addition, the Company generates revenues from the technology it developed through transaction fee arrangements, licensing agreements and patent litigation settlements, as part of its patent activity. Revenues are also generated from non-recurring engineering, customer services and technical support. Revenues from product sales and non-recurring engineering are recognized when delivery has occurred provided there is persuasive evidence of an agreement, the fee is fixed or determinable, collection of the related receivable is probable and no further obligations exist. In the case of non-recurring engineering, revenue is recognized upon completion of testing and approval of the customization of the product by the customer, provided that no further obligation exists. Revenues are recognized net of value added tax. License and transaction fees are recognized as earned based on actual usage. Usage is determined by receiving confirmation from the users. Patent litigation revenues are recognized upon final settlement of the litigation (see Note 14). The Company separates the settlement portion from the revenue element under the guidance of ASC Topic 605, Revenue Recognition Revenues relating to customer services and technical support are recognized as the services are rendered ratably over the term of the related contract. Licensing and transaction fees are recognized based on the volume of transactions or monthly licensing fees from systems that contain the Company’s products and usually bear no cost to the Company. The cost to the Company of warranting that the product will perform according to certain specifications and that the Company will repair or replace the product if it ceases to work properly, is insignificant and is treated according to accounting guidance for contingencies.
Research and development costs	K. Research, development costs and certification costs Research and development costs, which consist mainly of labor costs, materials and subcontractors, are charged to operations as incurred. According to ASC Topic 350, “ Intangibles - Goodwill and Other
Stock-based compensation	L. Stock-based compensation The Company measures and recognizes compensation expense for all stock-based payment awards made to employees and directors based on estimated grant date fair values. The estimated fair value of awards is charged to income on a straight-line basis over the requisite service period, which is generally the vesting period. ASC Topic 718, Compensation – Stock Compensation The Company elected to recognize compensation cost for awards with only service conditions that have a graded vesting schedule using the straight-line method.
Basic and diluted net loss per share	M. Basic and diluted net loss per share Basic and diluted net loss per ordinary share is computed based on the weighted average number of ordinary shares outstanding during each year. Shares issuable for little or no cash consideration, are considered outstanding ordinary shares and included in the computation of basic net loss per ordinary share as of the date that all necessary conditions have been satisfied. Stock options and warrants in the amounts of 1,644,836, 1,880,396 and 2,241,421 outstanding as of the year ended December 31, 2016, 2015 and 2014, respectively, have been excluded from the calculation of the diluted net loss per ordinary share because all such securities have an anti-dilutive effect for all periods presented.
Fair value of financial instruments	N. Fair value of financial instruments The Company’s financial instruments consist mainly of cash and cash equivalents, short-term interest bearing investments, accounts receivable, restricted deposits for employee benefits, accounts payable and short-term and long-term loans. Fair value for the measurement of financial assets and liabilities is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. The Company utilizes a valuation hierarchy for disclosure of the inputs for fair value measurement. This hierarchy prioritizes the inputs into three broad levels as follows: ● Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date. ● Level 2 Inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. ● Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at measurement date. By distinguishing between inputs that are observable in the market place, and therefore more objective, and those that are unobservable and therefore more subjective, the hierarchy is designed to indicate the relative reliability of the fair value measurements. A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The Company, in estimating fair value for financial instruments, determined that the carrying amounts of cash and cash equivalents, trade receivables, short-term bank credit and trade payables are equivalent to, or approximate their fair value due to the short-term maturity of these instruments. The carrying amounts of variable interest rate long-term loans are equivalent or approximate to their fair value as they bear interest at approximate market rates. At December 31, 2016, the fair value of bank loans with fixed interest rates did not differ materially from the carrying amount.
Income tax	O. Income tax The Company accounts for taxes on income in accordance with ASC Topic 740, Income Taxes The Company recognizes the effect of income tax positions only if those positions are more likely than not to be sustained. Recognized income tax positions are measured at the largest amount that is greater than 50 percent likely of being realized. The Company accounts for interest and penalties related to unrecognized tax benefits as a component of income tax expense.
Non-controlling interest	P. Non-controlling interest The Company implements ASC Topic 810, Consolidation
Severance pay	Q. Severance pay The Company’s liability for severance pay for some of its Israeli employees is calculated pursuant to Israeli Severance Pay Law, 1963 (the “Israeli Severance Pay Law”) based on the most recent salary of the employee multiplied by the number of years of employment, as of the balance sheet date. Those employees are entitled to one month’s salary for each year of employment or a portion thereof. Certain senior executives were entitled to receive additional severance pay. The Company records the liability as if it were payable at each balance sheet date on an undiscounted basis. The liability is classified based on the expected date of settlement, and therefore is usually classified as a long-term liability, unless the cessation of the employees is expected during the upcoming year. The Company’s liability for those Israeli employees is partially provided for by monthly deposits for insurance policies and the remainder by an accrual. The value of these policies is recorded as an asset in the Company’s balance sheet. The deposited funds include profits and losses accumulated up to the balance sheet date. The deposited funds may be withdrawn only upon the fulfillment of the obligation pursuant to the Israeli Severance Pay Law or labor agreements. The value of the deposited funds is based on the cash redemption value of these policies. In addition, the Company has deposited certain amounts with a trustee, to compensate for any severance pay liability that is not covered by other funds. These deposits are restricted and may be withdrawn only for payment of severance pay liabilities. The severance pay funds and the restricted deposits for employee benefits are classified based on the classification of the corresponding liability. In respect of other Israeli employees, the Company acts pursuant to the general approval of the Israeli Ministry of Labor and Welfare, pursuant to the terms of Section 14 of the Israeli Severance Pay Law, according to which the current deposits with the pension fund and/or with the insurance company exempt the Company from any additional obligation to these employees for whom the said depository payments are made. These deposits are accounted as defined contribution payments. Severance pay expenses for the years ended December 31, 2016, 2015 and 2014 amounted to $227, $331 and $370, respectively. Defined contribution plan expenses were $182, $273 and $319 in the years ended December 31, 2016, 2015 and 2014, respectively.
Advertising expenses	R. Advertising expenses Advertising expenses are charged to the statements of operations as incurred. Advertising expenses for the years ended December 31, 2016, 2015 and 2014 amounted to $1,142, $1,249 and $1,327, respectively.
Concentrations of credit risk	S. Concentrations of credit risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash equivalents, bank deposits and trade receivables. Cash equivalents are invested mainly in U.S. dollars with major banks in Israel and Europe. Management believes that the financial institutions that hold the Group’s investments are financially sound and, accordingly, minimal credit risk exists with respect to these investments. Most of the Company’s trade receivables are derived from sales to large and financially secure organizations. In determining the adequacy of the allowance, management bases its opinion, inter alia, on the estimated risks, current market conditions and in reliance on available information with respect to the debtor’s financial position. As for major customers, see Note 15. The activity in the allowance for doubtful accounts for the years ended December 31, 2016, 2015 and 2014 is as follows: 2016 2015 2014 Allowance for doubtful accounts at beginning of year $ 778 $ 671 $ 610 Additions charged to allowance for doubtful accounts 147 138 88 Write-downs charged against the allowance (205 ) (31 ) (27 ) Allowance for doubtful accounts at end of year $ 720 $ 778 $ 671
Commitments and contingencies	T. Commitments and contingencies Liabilities for loss contingencies arising from claims, assessments, litigations, fines and penalties and other sources are recognized when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. Gain contingencies are recognized only when final settlement is reached.
Business divestitures	U. Business divestures As described in Note 1B, the Company has sold certain operations. Upon reaching a definitive agreement with an acquirer, the Company recognizes the consideration received from the divesture, less all assets and liabilities sold, as a gain or loss. Discontinued operations Upon divesture of a business, the Company classifies such business as a discontinued operation, if the divested business represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. For disposals other than by sale such as abandonment, the results of operations of a business would not be recorded as a discontinued operation until the period in which the business is actually abandoned. The SmartID Division Divesture, the German Subsidiary Divesture and the Parking Business Divesture qualify as discontinued operations and therefore have been presented as such. The results of businesses that have qualified as discontinued operations have been presented as such for all reporting periods. Results of discontinued operations include all revenues and expenses directly derived from such businesses; general corporate overhead is not allocated to discontinued operations. Any loss or gain that arose from the divesture of a business that qualifies as discontinued operations has been included within the results of the discontinued operations. The Company also presents cash flows from discontinued operations separately from cash flows of continuing operations. Contingent consideration The Company’s sale arrangements consist of contingent consideration based on the divested businesses’ future sales or profits. The Company records the contingent consideration portion of the arrangement when the consideration is determined to be realizable.
Patent litigation and maintenance expenses	V. Patent litigation and maintenance expenses Patent litigation and maintenance expenses, which consist mainly of salaries and consultants’ fees, are expensed as incurred. The Company presents such expenses, excluding expenses associated directly with revenues from a litigation settlement agreement that contains a license agreement, as a separate item within its operating expenses because it believes that such presentation improves the understandability of the statement of operations. Expenses associated directly with revenues from a litigation settlement agreement that contains a license agreement are presented within ‘cost of licensing’ as mentioned in Note 2J.
Recent accounting pronouncements	W. Recent accounting pronouncements 1. On May 28, 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) 2. In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern 3. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330), Simplifying the Measurement of Inventory (ASU 2015-11) 4. In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740) Balance Sheet Classification of Deferred Taxes, 5. In February 2016, the FASB issued authoritative guidance which requires lessees to recognize on the balance sheet assets and liabilities for leases with lease terms of more than 12 months. Consistent with current GAAP, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. However, unlike current GAAP—which requires only capital leases to be recognized on the balance sheet—the new guidance will require both types of leases to be recognized on the balance sheet. The guidance will take effect for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. This guidance shall be applied at the beginning of the earliest period presented using the modified retrospective approach, which includes a number of practical expedients that an entity may elect to apply. Early application of the guidance is permitted. The Company is evaluating the adoption of this guidance and the potential effects on the consolidated financial statements. 6. On March 30, 2016, the FASB issued ASU 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. 7. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, addressing eight specific cash flow issues in an effort to reduce diversity in practice. The amended guidance is effective for fiscal years beginning after December 31, 2017, and for interim periods within those years. Early adoption is permitted. The Company currently does not expect that adoption of ASU 2016-15 to have a material impact on its consolidated financial statements. 8. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (ASC 230): Restricted Cash, which requires that amounts generally described as restricted cash and restricted cash equivalents be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The standard will be effective for annual periods beginning after December 31, 2017 and interim periods within that reporting period. The Company currently does not expect the adoption of this accounting standard to have a material impact on its consolidated statements of cash flows. 9. In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326) provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in this Update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates . The amendments affect entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off-balance-sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018. The Company currently does not expect the adoption of this accounting standard to have a material impact on its consolidated financial statements.

Significant Accounting Polici26

Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2016
Significant Accounting Policies [Abstract]
Schedule of property, plant and equipment estimated useful lives	Years Leasehold land (over the terms of the lease, see Note 5A(1)) 49 Buildings 25 Computers, software and manufacturing equipment 3-5 Office furniture and equipment 5-16 (mainly - 10)
Schedule of allowance for doubtful accounts	2016 2015 2014 Allowance for doubtful accounts at beginning of year $ 778 $ 671 $ 610 Additions charged to allowance for doubtful accounts 147 138 88 Write-downs charged against the allowance (205 ) (31 ) (27 ) Allowance for doubtful accounts at end of year $ 720 $ 778 $ 671

Other Receivables and Prepaid27

Other Receivables and Prepaid Expenses (Tables)	12 Months Ended
	Dec. 31, 2016
Other Receivables and Prepaid Expenses [Abstract]
Schedule of other receivables and prepaid expenses	December 31 2016 2015 Government institutions $ 322 $ 463 Prepaid expenses 526 624 Receivables under contractual obligations to be transferred to others * 346 533 Other receivables 444 563 $ 1,638 $ 2,183 * The Company’s subsidiary in Poland is required to collect certain fees that are to be transferred to local authorities.

Property, Plant and Equipment28

Property, Plant and Equipment, Net (Tables)	12 Months Ended
	Dec. 31, 2016
Property, Plant and Equipment, Net [Abstract]
Schedule of property, plant and equipment	December 31 2016 2015 Cost Leasehold land (1) $ - $ 272 Buildings on leasehold land (1) - 4,357 Buildings 907 790 Computers, software and manufacturing equipment 14,769 16,124 Office furniture and equipment 251 793 Motor vehicles 323 318 Total cost 16,250 22,654 Total accumulated depreciation 10,462 13,986 $ 5,788 $ 8,668 (1) As of December 31, 2015, the leasehold land consisted of two plots owned by the Israel Lands Administration. Rights to leasehold land on the first plot extend over the original period of 49 years ending in the year 2041 with an option to extend for an additional 49 years, and on the second plot for a period of 49 years, which will end in the year 2047 with an option to extend for a further 49 years. The amount includes payments on account of land development and payments of the capitalization of leasing payments. The rent for the initial 49-year term of each of these leases was prepaid in its entirety at the beginning of the lease terms as is customary in Israel for leases of property for industrial purposes from the Israel Lands Administration. During 2016, the Company sold its headquarters building in Rosh Pina, Israel and located on the above mentioned leasehold land. See also Note 10A.1.

Other Current Liabilities (Tabl

Other Current Liabilities (Tables)	12 Months Ended
	Dec. 31, 2016
Other Current Liabilities [Abstract]
Summary of other current liabilities	December 31 2016 2015 Employees and related expenses $ 1,011 $ 1,065 Accrued expenses 1,473 1,101 Customer advances 249 283 Other current liabilities 89 275 $ 2,822 $ 2,724

Bank Loans (Tables)

Bank Loans (Tables)	12 Months Ended
	Dec. 31, 2016
Bank Loans [Abstract]
Schedule of long-term loans	December 31 2016 2015 Long-term loans $ 1,827 $ 3,395 Less - current maturities 612 1,036 $ 1,215 $ 2,359
Summary of future long-term debt repayments	2017 $ 612 2018 495 2019 311 2020 105 2021 99 Thereafter 205 $ 1,827
Schedule of short-term loans, bank credit, and current maturities of long-term debt	December 31 December 31 2016 2015 2016 2015 % % Interest rate In U.S. Dollars 4.36 4.92 $ 2,102 $ 1,357 In Polish Zloty 3.60 3.15 953 729 In NIS 4.35 4.35 702 693 3,757 2,779 Current maturities of long-term loans 612 1,036 $ 4,369 $ 3,815

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2016
Commitments and Contingencies [Abstract]
Schedule of future minimum operating lease payments	2017 335 2018 275 2019 107 2020 87 2021 66 $ 870

Equity (Tables)

Equity (Tables)	12 Months Ended
	Dec. 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 680,000 0.95 Options expired or forfeited (499,283 ) 2.08 Options exercised (177,260 ) 1.00 Outstanding – December 31, 2016 1,604,836 $ 1.36 Exercisable as of: December 31, 2015 799,473 $ 1.85 December 31, 2016 591,017 $ 1.83
Summary of options outstanding and exercisable	Options outstanding Options Exercisable Number Weighted Number Weighted outstanding average Weighted Outstanding average Weighted as of remaining Average As of remaining Average Range of December 31, contractual Exercise December 31, contractual Exercise exercise price 2016 life (years) Price 2016 life (years) Price $ 0.44-0.90 626,668 3.79 $ 0.76 153,337 3.07 $ 0.79 1.07-1.20 420,000 4.81 1.07 10,000 0.41 1.20 1.46 50,000 1.55 1.46 50,000 1.55 1.46 1.68-1.76 65,000 2.14 1.69 35,000 1.41 1.70 2.32-2.36 403,168 1.50 2.34 322,680 1.28 2.34 $ 3.03 40,000 2.73 $ 3.03 20,000 2.73 $ 3.03 1,604,836 3.32 591,017 1.81

Supplemental Statement of Ope33

Supplemental Statement of Operations Data (Tables)	12 Months Ended
	Dec. 31, 2016
Supplemental Statement of Operations Data [Abstract]
Schedule of other operating expenses (income), net	Year ended December 31 Year ended December 31 Year ended December 31 2016 2015 2014 (Gain) loss on sale of property and equipment, net (1) 83 (4 ) (10 ) Cessation of employment agreements (2) 108 578 - Consulting fees - 340 - Sundry - - (3 ) Other expenses (income), net $ 191 $ 914 $ (13 ) 1 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 consideration of NIS 7,000 (approximately $1,848) 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 $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. 2 During 2015, the Company recorded compensation expenses related to the cessation of employment of the Company’s former Chief Executive Officer and related to the cessation of employment of the Company’s former Chief Executive Officer of the U.S. subsidiary. During 2016, the Company recorded compensation expenses related to the cessation of employment of the Company’s former Chief Financial Officer and former General Counsel and Company Secretary.

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2016
Income Taxes [Abstract]
Schedule of deferred tax assets and liabilities	December 31 December 31 2016 2015 Deferred tax assets: Operating loss carryforwards $ 45,450 $ 51,120 Other 1,000 1,311 Total gross deferred tax assets 46,450 52,431 Less – valuation allowance (46,450 ) (52,431 ) Net deferred tax assets $ - $ - Deferred tax liability - Other (373 ) (352 ) Net deferred tax liability $ (373 ) $ (352 )
Summary of changes in valuation allowance	Year ended December 31 2016 2015 2014 Balance at beginning of year $ 52,431 $ 50,450 $ 42,691 Additions during the year from Continuing operations 797 2,047 2,271 Changes due to amendments to tax laws and applicable future tax rates, see Note 11A(3) (6,408 ) - - Discontinued operations - see Note 1B (382 ) (67 ) 5,483 Other changes 12 1 5 Balance at end of year $ 46,450 $ 52,431 $ 50,450
Schedule of income tax (expense) benefit components	Year ended December 31 2016 2015 2014 Current $ (24 ) $ - $ (2 ) Deferred (58 ) (122 ) (108 ) Income tax expense $ (82 ) $ (122 ) $ (110 )
Reconciliation of income tax expense	Year ended December 31 2016 2015 2014 Computed “expected” income tax benefit $ 572 $ 1,953 $ 2,595 Decrease in income tax benefit resulting from: Change in valuation allowance, net (797 ) (2,047 ) (2,271 ) Nondeductible stock-based compensation related to options issued to employees (60 ) (123 ) (232 ) Other nondeductible expenses (16 ) (96 ) (113 ) Tax from previous years 143 - - Other 76 191 (89 ) Reported income tax expense $ (82 ) $ (122 ) $ (110 )
Schedule of income (loss) before taxes on income	Year ended December 31 2016 2015 2014 Israel $ (2,924 ) $ (7,683 ) $ (10,138 ) Non-Israel 637 313 346 $ (2,287 ) $ (7,370 ) $ (9,792 )

Discontinued Operations (Tables

Discontinued Operations (Tables)	12 Months Ended
	Dec. 31, 2016
Discontinued Operations [Abstract]
Schedule of results of discontinued operations	Year ended December 31 2016 2015 2014 Revenues $ 768 $ 1,389 $ 3,527 Expenses (1,319 ) (1,984 ) (4,513 ) Other income, net 2,060 848 1,006 Net income from discontinued operations $ 1,509 $ 253 $ 20

Operating Segments (Tables)

Operating Segments (Tables)	12 Months Ended
	Dec. 31, 2016
Operating Segments [Abstract]
Schedule of reconciliation of segment information to consolidated financial information	Year ended December 31, 2016 Retail and Mass Transit Ticketing Petroleum Other Consolidated Revenues 14,124 (**) 4,122 2,318 20,564 Reportable segment gross profit * 7,463 2,365 1,112 10,940 Reconciliation of reportable segment gross profit to profit for the period Depreciation (733 ) Stock-based compensation (4 ) Gross profit for the period $ 10,203 Year ended December 31, 2015 Retail and Mass Transit Ticketing Petroleum Other Consolidated Revenues 11,510 (**) 4,386 2,576 18,472 Reportable segment gross profit * 6,482 2,353 1,190 10,025 Reconciliation of reportable segment gross profit to profit for the period Depreciation (733 ) Stock-based compensation (34 ) Gross profit for the period $ 9,258 Year ended December 31, 2014 Retail and Mass Transit Ticketing Petroleum Other Consolidated Revenues 15,042 3,838 1,790 20,670 Reportable segment gross profit * 7,143 2,213 939 10,295 Reconciliation of reportable segment gross profit to profit for the period Depreciation (729 ) Stock-based compensation (35 ) Gross profit for the period $ 9,531 * 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 years ended December 31, 2016 and 2015 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.

Geographic Information and Ma37

Geographic Information and Major Customers (Tables)	12 Months Ended
	Dec. 31, 2016
Geographic Information and Major Customers [Abstract]
Schedule of revenues by geographical areas from external customers	Year ended December 31 2016 2015 2014 Revenues by geographical areas from external customers Americas $ 9,984 $ 7,886 $ 8,722 Asia 286 500 1,077 Africa 4,122 3,970 3,865 Europe 5,890 5,585 6,229 Total export 20,282 17,941 19,893 Domestic (Israel) 282 531 777 $ 20,564 $ 18,472 $ 20,670
Schedule of Long lived assets by geographical areas	December 31 December 31 2016 2015 Long lived assets by geographical areas Domestic (Israel) $ 610 $ 2,595 Poland 4,486 5,379 South Africa 900 796 America 70 78 $ 6,066 $ 8,848
Schedule of major customers by percentage from total revenues	Year ended December 31 2016 2015 2014 % % % Major Customers by percentage from total revenues Customer A (*) 17 % 16 % 25 % Customer B (*) 15 % 16 % 16 % (*) The revenues derived from the both customers are presented within the revenues from the Retail and Mass Transit Ticketing.

General (Details)

General (Details) € in Thousands, $ in Thousands	Apr. 20, 2016USD ($)	Dec. 31, 2013USD ($)	Dec. 31, 2013EUR (€)
General (Textual)
Proceeds from divestiture of operations	$ 2,050	$ 10,000
Deferred performance-based revenue	$ 1,500	12,500
Proceeds from sale of subsidiary		$ 960	€ 700

Significant Accounting Polici39

Significant Accounting Policies (Details)	12 Months Ended
	Dec. 31, 2016
Leasehold land (over the terms of the lease, see Note 5A(1))[Member]
Property, Plant and Equipment [Line Items]
Estimated useful life	49 years
Buildings [Member]
Property, Plant and Equipment [Line Items]
Estimated useful life	25 years
Office furniture and equipment [Member]
Property, Plant and Equipment [Line Items]
Estimated useful life	10 years
Minimum [Member] | Computers, software and manufacturing equipment [Member]
Property, Plant and Equipment [Line Items]
Estimated useful life	3 years
Minimum [Member] | Office furniture and equipment [Member]
Property, Plant and Equipment [Line Items]
Estimated useful life	5 years
Maximum [Member] | Computers, software and manufacturing equipment [Member]
Property, Plant and Equipment [Line Items]
Estimated useful life	5 years
Maximum [Member] | Office furniture and equipment [Member]
Property, Plant and Equipment [Line Items]
Estimated useful life	16 years

Significant Accounting Polici40

Significant Accounting Policies (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Significant Accounting Policies [Abstract]
Allowance for doubtful accounts at beginning of year	$ 778	$ 671	$ 610
Additions charged to allowance for doubtful accounts	147	138	88
Write-downs charged against the allowance	(205)	(31)	(27)
Allowance for doubtful accounts at end of year	$ 720	$ 778	$ 671

Significant Accounting Polici41

Significant Accounting Policies (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Significant Accounting Policies (Textual)
Estimated useful life	3 years
Anti-dilutive stock options and warrants	1,644,836	1,880,396	2,241,421
Severance pay expense	$ 227	$ 331	$ 370
Defined contribution plan expense	182	273	319
Advertising expense	$ 1,142	$ 1,249	$ 1,327

Short-Term Investments (Details

Short-Term Investments (Details)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Bank Deposits [Member] | Weighted Average [Member]
Short-Term Investments (Textual)
weighted average annual interest	0.70%	0.59%

Other Receivables and Prepaid43

Other Receivables and Prepaid Expenses (Details) - USD ($) $ in Thousands		Dec. 31, 2016	Dec. 31, 2015
Other Receivables and Prepaid Expenses [Abstract]
Government institutions		$ 322	$ 463
Prepaid expenses		526	624
Receivables under contractual obligations to be transferred to others	[1]	346	533
Other receivables		444	563
Total other receivables and prepaid expenses		$ 1,638	$ 2,183
[1]	The Company's subsidiary in Poland is required to collect certain fees that are to be transferred to local authorities.

Property, Plant and Equipment44

Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands		Dec. 31, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Total Cost		$ 16,250	$ 22,654
Total accumulated depreciation		10,462	13,986
Net Cost		5,788	8,668
Leasehold land [Member]
Property, Plant and Equipment [Line Items]
Total Cost	[1]		272
Buildings on leasehold land [Member]
Property, Plant and Equipment [Line Items]
Total Cost	[1]		4,357
Buildings [Member]
Property, Plant and Equipment [Line Items]
Total Cost		907	790
Computers, software and manufacturing equipment [Member]
Property, Plant and Equipment [Line Items]
Total Cost		14,769	16,124
Office furniture and equipment [Member]
Property, Plant and Equipment [Line Items]
Total Cost		251	793
Motor vehicles [Member]
Property, Plant and Equipment [Line Items]
Total Cost		$ 323	$ 318
[1]	As of December 31, 2015, the leasehold land consisted of two plots owned by the Israel Lands Administration. Rights to leasehold land on the first plot extend over the original period of 49 years ending in the year 2041 with an option to extend for an additional 49 years, and on the second plot for a period of 49 years, which will end in the year 2047 with an option to extend for a further 49 years. The amount includes payments on account of land development and payments of the capitalization of leasing payments. The rent for the initial 49-year term of each of these leases was prepaid in its entirety at the beginning of the lease terms as is customary in Israel for leases of property for industrial purposes from the Israel Lands Administration. During 2016, the Company sold its headquarters building in Rosh Pina, Israel and located on the above mentioned leasehold land. See also Note 10A.1.

Property, Plant and Equipment45

Property, Plant and Equipment, Net (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Property Plant and Equipment Net [Textual]
Depreciation expense	$ 1,172	$ 1,224	$ 1,263
Leasehold land [Member] | Plot One [Member]
Property Plant and Equipment Net [Textual]
Estimated expected lives of plot		The original period of 49 years ending in the year 2041 with an option to extend for an additional 49 years.
Leasehold land [Member] | Plot Two [Member]
Property Plant and Equipment Net [Textual]
Estimated expected lives of plot		A period of 49 years, which will end in the year 2047 with an option to extend for a further 49 years.

Other Current Liabilities (Deta

Other Current Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Other Current Liabilities [Abstract]
Employees and related expenses	$ 1,011	$ 1,065
Accrued expenses	1,473	1,101
Customer advances	249	283
Other current liabilities	89	275
Total other current liabilities	$ 2,822	$ 2,724

Bank Loans (Details)

Bank Loans (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Bank Loans [Abstract]
Long-term loans	$ 1,827	$ 3,395
Less - current maturities	612	1,036
Long-term loans, net of current maturities	$ 1,215	$ 2,359

Bank Loans (Details 1)

Bank Loans (Details 1) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Bank Loans [Abstract]
2,017	$ 612
2,018	495
2,019	311
2,020	105
2,021	99
Thereafter	205
Long-term loans	$ 1,827	$ 3,395

Bank Loans (Details 2)

Bank Loans (Details 2) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Short-term Debt [Line Items]
Short-term loans and bank credit	$ 3,757	$ 2,779
Current maturities of long-term loans	612	1,036
Total short-term loans, bank credit and current maturities of long-term loans	$ 4,369	$ 3,815
In U.S. Dollars [Member]
Short-term Debt [Line Items]
Interest rate	4.36%	4.92%
Short-term loans and bank credit	$ 2,102	$ 1,357
In Polish Zloty [Member]
Short-term Debt [Line Items]
Interest rate	3.60%	3.15%
Short-term loans and bank credit	$ 953	$ 729
In NIS [Member]
Short-term Debt [Line Items]
Interest rate	4.35%	4.35%
Short-term loans and bank credit	$ 702	$ 693

Bank Loans (Details Textual)

Bank Loans (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Bank Loans (Textual)
Weighted average interest rate	4.05%	4.35%
Credit lines authorized	$ 4,048
Credit lines used	3,757
In Polish Zloty [Member]
Bank Loans (Textual)
Bank loans	$ 1,176
Beginning maturity range	Dec. 31, 2017
Ending maturity range	Dec. 31, 2019
South African Rand [Member]
Bank Loans (Textual)
Bank loans	$ 651
Beginning maturity range	Dec. 31, 2017
Ending maturity range	Dec. 31, 2023
Minimum [Member]
Bank Loans (Textual)
Loans bear interest rate	3.60%
Maximum [Member]
Bank Loans (Textual)
Loans bear interest rate	10.50%

Commitments and Contingencies51

Commitments and Contingencies (Details) $ in Thousands	Dec. 31, 2016USD ($)
Minimum future rentals:
2,017	$ 335
2,018	275
2,019	107
2,020	87
2,021	66
Total	$ 870

Commitments and Contingencies52

Commitments and Contingencies (Details Textual) € in Thousands, $ in Thousands	Mar. 01, 2017USD ($)	Oct. 03, 2013USD ($)	Oct. 03, 2013EUR (€)	Jun. 30, 2013USD ($)	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)
Commitments and Contingencies (Textual)
Grants received, net of royalties paid					$ 3,500
Percentage of sales paid as royalties					3.50%
Royalties expenses					$ 423	$ 356	$ 406
Lease expiration dates description					Expiring in years 2017 through 2021
Rent expenses					$ 313	$ 368	$ 382
Short-term deposits respect of guarantees granted					1,548
Guarantees to secure customer advances					$ 543
Guarantees expiration dates description					The expiration dates of the guarantees range from February 2017 to June 2019.
Merwell Inc [Member]
Commitments and Contingencies (Textual)
Outstanding commissions arbitration				$ 855
Parx France [Member]
Commitments and Contingencies (Textual)
Financial claim field		$ 1,578	€ 1,500
OTI America Inc [Member] | Subsequent Event [Member]
Commitments and Contingencies (Textual)
Total of interest and costs and cover payment for alternative products	$ 4,913
Cover payment for alternative products	4,184
Interest and costs, comprised amount	729
Collection of Accounts Receivables plus interest and cost	$ 2,518

Equity (Details)

Equity (Details) - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Number of options outstanding
Outstanding - Beginning Balance	1,601,379
Options granted	680,000
Options expired or forfeited	(499,283)
Options exercised	(177,260)
Outstanding - Ending Balance	1,604,836
Exercisable	591,017	799,473
Weighted average exercise price per share
Outstanding - Beginning Balance	$ 1.71
Options granted	0.95
Options expired or forfeited	2.08
Options exercised	1
Outstanding - Ending Balance	1.36
Exercisable	$ 1.83	$ 1.85

Equity (Details 1)

Equity (Details 1)	12 Months Ended
	Dec. 31, 2016$ / sharesshares
Options outstanding
Number outstanding | shares	1,604,836
Weighted average remaining contractual life (years)	3 years 3 months 26 days
Options Exercisable
Number outstanding | shares	591,017
Weighted average remaining contractual life (years)	1 year 9 months 22 days
0.44-0.90 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of exercise price, Lower limit	$ 0.44
Range of exercise price, Upper limit	$ 0.90
Options outstanding
Number outstanding | shares	626,668
Weighted average remaining contractual life (years)	3 years 9 months 15 days
Weighted Average Exercise Price	$ 0.76
Options Exercisable
Number outstanding | shares	153,337
Weighted average remaining contractual life (years)	3 years 26 days
Weighted Average Exercise Price	$ 0.79
1.07-1.20 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of exercise price, Lower limit	1.07
Range of exercise price, Upper limit	$ 1.20
Options outstanding
Number outstanding | shares	420,000
Weighted average remaining contractual life (years)	4 years 9 months 22 days
Weighted Average Exercise Price	$ 1.07
Options Exercisable
Number outstanding | shares	10,000
Weighted average remaining contractual life (years)	4 months 28 days
Weighted Average Exercise Price	$ 1.20
1.46 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of exercise price, Upper limit	$ 1.46
Options outstanding
Number outstanding | shares	50,000
Weighted average remaining contractual life (years)	1 year 6 months 18 days
Weighted Average Exercise Price	$ 1.46
Options Exercisable
Number outstanding | shares	50,000
Weighted average remaining contractual life (years)	1 year 6 months 18 days
Weighted Average Exercise Price	$ 1.46
1.68-1.76 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of exercise price, Lower limit	1.68
Range of exercise price, Upper limit	$ 1.76
Options outstanding
Number outstanding | shares	65,000
Weighted average remaining contractual life (years)	2 years 1 month 21 days
Weighted Average Exercise Price	$ 1.69
Options Exercisable
Number outstanding | shares	35,000
Weighted average remaining contractual life (years)	1 year 4 months 28 days
Weighted Average Exercise Price	$ 1.70
2.32-2.36 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of exercise price, Lower limit	2.32
Range of exercise price, Upper limit	$ 2.36
Options outstanding
Number outstanding | shares	403,168
Weighted average remaining contractual life (years)	1 year 6 months
Weighted Average Exercise Price	$ 2.34
Options Exercisable
Number outstanding | shares	322,680
Weighted average remaining contractual life (years)	1 year 3 months 11 days
Weighted Average Exercise Price	$ 2.34
3.03 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of exercise price, Upper limit	$ 3.03
Options outstanding
Number outstanding | shares	40,000
Weighted average remaining contractual life (years)	2 years 8 months 23 days
Weighted Average Exercise Price	$ 3.03
Options Exercisable
Number outstanding | shares	20,000
Weighted average remaining contractual life (years)	2 years 8 months 23 days
Weighted Average Exercise Price	$ 3.03

Equity (Details Textual)

Equity (Details Textual) - USD ($) $ / shares in Units, $ in Thousands	Jun. 17, 2014	Nov. 28, 2014	Oct. 22, 2013	Feb. 28, 2001	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2012
Equity [Textual]
Options granted					680,000
Aggregate intrinsic value of exercisable options					$ 45	$ 0	$ 1,096
Date of warrants expire					Dec. 31, 2019
Share-based compensation					$ 239	463	875
Warrants expired					281,369
Warrant exercised					36,142
Proceeds from issuance of shares, net of issuance expenses							$ 10,444
Non-controlling interest and additional paid-in capital, increase					(69)
Non-controlling interest [Member]
Equity [Textual]
Non-controlling interest and additional paid-in capital, increase					1,851
Non-controlling interest and additional paid-in capital, decrease						$ (1,228)
PARX Ltd [Member]
Equity [Textual]
Percentage of ownership rate						90.70%
Minority interest, consideration					69
Easy Park Ltd [Member]
Equity [Textual]
Percentage of ownership rate						85.50%
Minority interest, consideration					$ 69
Stock option plans [Member]
Equity [Textual]
Weighted average fair value of options granted					$ 0.95	$ 1.01	$ 1.09
Aggregate intrinsic value of outstanding options					$ 909
Aggregate intrinsic value of exercisable options					166
Unrecognized compensation cost					$ 485
Weighted-average period					1 year 3 months 26 days
Increased shares issued to share options	750,000		2,500,000					13,125,000
Dividend yield					0.00%	0.00%	0.00%
Fair value of shares vested					$ 187
Employee [Member]
Equity [Textual]
Options granted				75,000
Director [Member]
Equity [Textual]
Options granted				75,000
Consultants [Member]
Equity [Textual]
Options granted				75,000	15,000
Warrant exercised					40,000
Exercise price of warrants					$ 0.95
Public offering [Member]
Equity [Textual]
Number of ordinary shares issued		7,187,500
Public offering price		$ 1.60
Proceeds from issuance of shares, net of issuance expenses		$ 10,444
Minimum [Member] | Stock option plans [Member]
Equity [Textual]
Risk-free interest rate					0.97%	1.21%	0.79%
Estimated expected lives					2 years 6 months	2 years 6 months	2 years 6 months
Expected average volatility					71.00%	69.00%	64.00%
Maximum [Member] | Stock option plans [Member]
Equity [Textual]
Risk-free interest rate					1.42%	1.32%	1.05%
Estimated expected lives					4 years	4 years	4 years
Expected average volatility					75.00%	71.00%	67.00%

Supplemental Statement of Ope56

Supplemental Statement of Operations Data (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Other Expenses (Income), Net
(Gain) loss on sale of property and equipment, net	$ 83	$ (4)	$ (10)
Cessation of employment agreements	108	578
Consulting fees		340
Sundry			(3)
Other expenses (income), net	$ 191	$ 914	$ (13)

Supplemental Statement of Ope57

Supplemental Statement of Operations Data (Details Textual) ₪ in Thousands, $ in Thousands	Sep. 04, 2016USD ($)	May 07, 2016USD ($)	May 07, 2016ILS (₪)
Supplemental statement of operations data (Textual)
Consideration received from sale of building		$ 1,848	₪ 7,000
Leaseback period of agreement		2 years	2 years
Annual rent		$ 130
Lease agreement terms extend		1 year	1 year
Other operating loss	$ 83

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Deferred tax assets:
Net operating loss carryforwards	$ 45,450	$ 51,120
Other	1,000	1,311
Total gross deferred tax assets	46,450	52,431
Less - valuation allowance	(46,450)	(52,431)	$ (50,450)	$ (42,691)
Net deferred tax assets
Deferred tax liability -
Other	(373)	(352)
Net deferred tax liability	$ (373)	$ (352)

Income Taxes (Details 1)

Income Taxes (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Valuation Allowance [Line Items]
Balance at beginning of year	$ 52,431	$ 50,450	$ 42,691
Balance at end of year	46,450	52,431	50,450
Additions during the year from Continuing operations [Member]
Valuation Allowance [Line Items]
Change in valuation allowance	797	2,047	2,271
Changes due to amendments to tax laws and applicable future tax rates, see Note 11A(3) [Member]
Valuation Allowance [Line Items]
Change in valuation allowance	(6,408)
Discontinued operations - see Note 1B [Member]
Valuation Allowance [Line Items]
Change in valuation allowance	(382)	(67)	5,483
Other changes [Member]
Valuation Allowance [Line Items]
Change in valuation allowance	$ 12	$ 1	$ 5

Income Taxes (Details 2)

Income Taxes (Details 2) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Taxes [Abstract]
Current	$ (24)		$ (2)
Deferred	(58)	(122)	(108)
Income tax expense	$ (82)	$ (122)	$ (110)

Income Taxes (Details 3)

Income Taxes (Details 3) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Taxes [Abstract]
Computed "expected" income tax benefit	$ 572	$ 1,953	$ 2,595
Decrease in income tax benefit resulting from:
Change in valuation allowance, net	(797)	(2,047)	(2,271)
Nondeductible stock-based compensation related to options issued to employees	(60)	(123)	(232)
Other nondeductible expenses	(16)	(96)	(113)
Tax from previous years	143
Other	76	191	(89)
Income tax expense	$ (82)	$ (122)	$ (110)

Income Taxes (Details 4)

Income Taxes (Details 4) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015		Dec. 31, 2014
Income Taxes [Abstract]
Israel	$ (2,924)	$ (7,683)		$ (10,138)
Non-Israel	637	313		346
Loss from continuing operations before taxes on income	$ (2,287)	$ (7,370)	[1]	$ (9,792)	[1]
[1]	Reclassified to conform with the current period presentation, see Note 1B(3).

Income Taxes (Details Textual)

Income Taxes (Details Textual) - USD ($) $ in Thousands	Dec. 22, 2016	Jan. 04, 2016	Jan. 31, 2018	Jan. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Operating Loss Carryforwards [Line Items]
Corporate income tax rate		25.00%			25.00%	26.50%	26.50%
Description of interest rate					Tax rates on preferred income as from the 2014 tax year are as follows: 9% for Development Area A and 16% for the rest of the country. Furthermore, an enterprise that meets the definition of a special preferred enterprise is entitled to benefits for a period of 10 consecutive years and a reduced tax rate of 5% in Development Area A and of 8% in the rest of the country.
Undistributed earnings of foreign subsidiaries					$ 3,738
Gross unrecognized tax benefits
Accrued interest and penalties
Subsequent Event [Member]
Operating Loss Carryforwards [Line Items]
Corporate income tax rate			23.00%	24.00%
Minimum [Member]
Operating Loss Carryforwards [Line Items]
Corporate income tax rate	23.00%
Maximum [Member]
Operating Loss Carryforwards [Line Items]
Corporate income tax rate	25.00%
Israeli [Member]
Operating Loss Carryforwards [Line Items]
Tax rate to be applied to dividend distributed out of preferred income					20.00%
Oerating loss carryforwards					$ 168,090
Capital loss carry forwards					$ 23,433
Description of interest rate					On December 22, 2016, the Israeli parliament passed a law that reduces the tax rate on preferred income for companies located in Development Area A from 9% to 7.5%, commencing on January 1, 2017.
Non-Israeli [Member]
Operating Loss Carryforwards [Line Items]
Oerating loss carryforwards					$ 3,551
Non-Israeli [Member] | No Expiration [Member]
Operating Loss Carryforwards [Line Items]
Oerating loss carryforwards					55
Non-Israeli [Member] | Tax expire in year 2026 [Member]
Operating Loss Carryforwards [Line Items]
Oerating loss carryforwards					$ 2,963
Expiration					Dec. 31, 2026
Non-Israeli [Member] | Tax expire in year 2027 [Member]
Operating Loss Carryforwards [Line Items]
Oerating loss carryforwards					$ 533
Expiration					Dec. 31, 2027

Discontinued Operations (Detail

Discontinued Operations (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015		Dec. 31, 2014
Discontinued Operations [Abstract]
Revenues	$ 768	$ 1,389		$ 3,527
Expenses	(1,319)	(1,984)		(4,513)
Other income, net	2,060	848		1,006
Net income from discontinued operations	$ 1,509	$ 253	[1]	$ 20	[1]
[1]	Reclassified to conform with the current period presentation, see Note 1B(3).

Discontinued Operations (Deta65

Discontinued Operations (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Discontinued operations (Textual)
Other income, net	$ 2,060	$ 848	$ 1,006
Smart ID division [Member]
Discontinued operations (Textual)
Other income, net	209	$ 848	$ 1,013
Payment for divesture	2,050
Loss in amount of divesture	$ 111

Operating Segments (Details)

Operating Segments (Details) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2016		Dec. 31, 2015		Dec. 31, 2014
Segment Reporting Information [Line Items]
Revenues		$ 20,564		$ 18,472	[1]	$ 20,670	[1]
Reportable segment gross profit	[2]	10,940		10,025		10,295
Reconciliation of reportable segment gross profit to profit for the period
Depreciation		(733)		(733)		(729)
Stock based compensation		(4)		(34)		(35)
Gross profit		10,203		9,258	[1]	9,531	[1]
Retail and Mass Transit Ticketing [Member]
Segment Reporting Information [Line Items]
Revenues		14,124	[3]	11,510	[3]	15,042
Reportable segment gross profit	[2]	7,463		6,482		7,143
Petroleum [Member]
Segment Reporting Information [Line Items]
Revenues		4,122		4,386		3,838
Reportable segment gross profit	[2]	2,365		2,353		2,213
Other [Member]
Segment Reporting Information [Line Items]
Revenues		2,318		2,576		1,790
Reportable segment gross profit	[2]	$ 1,112		$ 1,190		$ 939
[1]	Reclassified to conform with the current period presentation, see Note 1B(3).
[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 years ended December 31, 2016 and 2015 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)	12 Months Ended
	Dec. 31, 2016Segments
Operating Segments (Textual)
Reportable segments	2

Geographic Information and Ma68

Geographic Information and Major Customers (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015		Dec. 31, 2014
Revenues from External Customers and Long-Lived Assets [Line Items]
Total export	$ 20,282	$ 17,941		$ 19,893
Domestic (Israel)	282	531		777
Total revenues	20,564	18,472	[1]	20,670	[1]
Americas [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total export	9,984	7,886		8,722
Asia [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total export	286	500		1,077
Africa [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total export	4,122	3,970		3,865
Europe [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total export	$ 5,890	$ 5,585		$ 6,229
[1]	Reclassified to conform with the current period presentation, see Note 1B(3).

Geographic Information and Ma69

Geographic Information and Major Customers (Details 1) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Revenues from External Customers and Long-Lived Assets [Line Items]
Long lived assets	$ 6,066	$ 8,848
Domestic (Israel) [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Long lived assets	610	2,595
Poland [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Long lived assets	4,486	5,379
South Africa [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Long lived assets	900	796
America [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Long lived assets	$ 70	$ 78

Geographic Information and Ma70

Geographic Information and Major Customers (Details 2) - Revenues [Member] - Customers [Member]		12 Months Ended
		Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Customer A [Member]
Revenue, Major Customer [Line Items]
Concentration risk percentage	[1]	17.00%	16.00%	25.00%
Customer B [Member]
Revenue, Major Customer [Line Items]
Concentration risk percentage	[1]	15.00%	16.00%	16.00%
[1]	The revenues derived from the both customers are presented within the revenues from the Retail and Mass Transit Ticketing.