on Track Innovations (OTIVF) 10-Q 14 Nov 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Oct. 30, 2018
Document and Entity Information [Abstract]
Entity Registrant Name	ON TRACK INNOVATIONS LTD
Entity Central Index Key	1,021,604
Trading Symbol	OTIV
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Type	10-Q
Document Period End Date	Sep. 30, 2018
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,018
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Ex Transition Period	false
Entity Common Stock, Shares Outstanding		41,294,377

Interim Unaudited Condensed Con

Interim Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Current assets
Cash and cash equivalents	$ 4,514	$ 6,742
Short-term investments	1,391	3,331
Trade receivables (net of allowance for doubtful accounts of $619 and $568 as of September 30, 2018 and December 31, 2017, respectively)	4,026	5,827
Other receivables and prepaid expenses	2,676	1,563
Inventories	3,356	3,009
Total current assets	15,963	20,472
Long-term restricted deposit for employees benefit	468	498
Severance pay deposits	358	405
Property, plant and equipment, net	5,246	5,859
Intangible assets, net	264	336
Total Assets	22,299	27,570
Current Liabilities
Short-term bank credit and current maturities of long-term bank loans	504	4,181
Trade payables	6,670	6,264
Other current liabilities	2,133	2,421
Total current liabilities	9,307	12,866
Long-Term Liabilities
Long-term loans, net of current maturities	8	814
Accrued severance pay	874	939
Deferred tax liability	452	500
Total long-term liabilities	1,334	2,253
Total Liabilities	10,641	15,119
Commitments and Contingencies
Shareholders' Equity
Ordinary shares of NIS 0.1 par value: Authorized: 50,000,000 shares as of September 30, 2018 and December 31, 2017; issued: 42,473,076 and 42,353,077 shares as of September 30, 2018 and December 31, 2017, respectively; outstanding: 41,294,377 and 41,174,378 shares as of September 30, 2018 and December 31, 2017, respectively	1,068	1,064
Additional paid-in capital	224,968	224,758
Treasury shares at cost - 1,178,699 shares as of September 30, 2018 and December 31, 2017	(2,000)	(2,000)
Accumulated other comprehensive loss	(901)	(691)
Accumulated deficit	(211,477)	(210,680)
Total Equity	11,658	12,451
Total Liabilities and Equity	$ 22,299	$ 27,570

Interim Unaudited Condensed C_2

Interim Unaudited Condensed Consolidated Balance Sheets (Parenthetical) $ in Thousands	Sep. 30, 2018USD ($)shares	Sep. 30, 2018₪ / shares	Dec. 31, 2017USD ($)shares	Dec. 31, 2017₪ / shares
Statement of Financial Position [Abstract]
Allowance for doubtful accounts, net | $	$ 619		$ 568
Ordinary shares, par value | ₪ / shares		₪ 0.1		₪ 0.1
Ordinary shares, shares authorized	50,000,000		50,000,000
Ordinary shares, shares issued	42,473,076		42,353,077
Ordinary shares, shares outstanding	41,294,377		41,174,378
Treasury shares ,at cost	1,178,699		1,178,699

Interim Unaudited Condensed C_3

Interim Unaudited Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2018		Sep. 30, 2017	Sep. 30, 2018		Sep. 30, 2017
Revenues
Sales	$ 5,020		$ 3,445	$ 14,157		$ 11,871
Licensing and transaction fees	1,453		1,225	4,332		3,765
Total revenues	6,473		4,670	18,489		15,636
Cost of revenues
Cost of sales	3,051		2,192	8,778		7,468
Total cost of revenues	3,051		2,192	8,778		7,468
Gross profit	3,422		2,478	9,711		8,168
Operating expenses
Research and development	777		823	2,422		2,414
Selling and marketing	1,592		1,332	4,700		4,166
General and administrative	1,098		758	3,070		2,553
Total operating expenses	3,467		2,913	10,192		9,133
Operating loss from continuing operations	(45)		(435)	(481)		(965)
Financial expenses, net	(2)		(126)	(129)		(236)
Loss from continuing operations before taxes on income	(47)		(561)	(610)		(1,201)
Income tax	(111)		(12)	(73)		(68)
Net loss from continuing operations	(158)		(573)	(683)		(1,269)
Net (loss) income from discontinued operations	(26)		1,441	(114)		1,365
Net (loss) income	$ (184)		$ 868	$ (797)		$ 96
Basic and diluted net gain (loss) attributable to shareholders per ordinary share
From continuing operations		[1]	$ (0.01)	$ (0.02)		$ (0.03)
From discontinued operations		[1]	0.03		[1]	0.03
Total		[1]	$ 0.02	$ (0.02)			[1]
Weighted average number of ordinary shares used in computing basic and diluted net (loss) income per ordinary share	41,294,377		41,122,965	41,260,426		41,099,603
[1]	Less than $0.01 per ordinary share.

Interim Unaudited Condensed C_4

Interim Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Total comprehensive (loss) income:
Net (loss) income	$ (184)	$ 868	$ (797)	$ 96
Foreign currency translation adjustments	44	28	(210)	360
Total comprehensive (loss) income	$ (140)	$ 896	$ (1,007)	$ 456

Interim Unaudited Condensed C_5

Interim Unaudited Condensed Consolidated Statements of Changes in Equity - USD ($) $ in Thousands		Total	Share capital		Additional paid-in capital	Treasury Shares (at cost)	Accumulated other comprehensive Income (loss)	Accumulated deficit
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
Changes during the nine month period ended
Stock-based compensation		238	$ 2		236
Stock-based compensation, Shares	[1]		45,000
Exercise of options		25		[2]	25
Exercise of options, Shares			25,002
Foreign currency translation adjustments		360					360
Net income		96						96
Balance at Sep. 30, 2017		12,877	$ 1,063		224,676	(2,000)	(876)	(209,986)
Balance, Shares at Sep. 30, 2017			42,313,077
Balance at Dec. 31, 2017		12,451	$ 1,064		224,758	(2,000)	(691)	(210,680)
Balance, Shares at Dec. 31, 2017			42,353,077
Changes during the nine month period ended
Stock-based compensation		180	$ 3		177
Stock-based compensation, Shares	[1]		80,000
Exercise of options		34	$ 1		33
Exercise of options, Shares			39,999
Foreign currency translation adjustments		(210)					(210)
Net income		(797)						(797)
Balance at Sep. 30, 2018		$ 11,658	$ 1,068		$ 224,968	$ (2,000)	$ (901)	$ (211,477)
Balance, Shares at Sep. 30, 2018			42,473,076
[1]	See Note 9D.
[2]	Less than $1.

Interim Unaudited Condensed C_6

Interim Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash flows from continuing operating activities
Net loss from continuing operations	$ (683)	$ (1,269)
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	180	238
Depreciation and amortization	978	878
Deferred tax, net	(20)	37
Gain on sale of property and equipment	(25)	(9)
Accrued interest and linkage differences, net		(41)
Changes in operating assets and liabilities:
Accrued severance pay, net	(19)	72
Decrease in trade receivables, net	1,744	187
Increase in other receivables and prepaid expenses	(1,162)	(435)
Increase in inventories	(381)	(710)
Increase (decrease) in trade payables	668	(611)
Decrease in other current liabilities	(273)	(777)
Net cash provided by (used in) continuing operating activities	1,007	(2,440)
Cash flows from continuing investing activities
Purchase of property and equipment	(467)	(160)
Proceeds from sale of property and equipment	52	14
Change in short-term investments, net	1,195	2,917
Investment in capitalized certification costs	(92)	(185)
Proceeds from restricted deposit for employees benefit	8	44
Net cash provided by continuing investing activities	696	2,630
Cash flows from continuing financing activities
Decrease in short-term bank credit, net	(3,449)	(72)
Repayment of long-term bank loans	(979)	(469)
Proceeds from exercise of options and warrants	34	25
Net cash used in continuing financing activities	(4,394)	(516)
Cash flows from discontinued operations
Net cash used in discontinued operating activities	(115)	(86)
Total net cash used in discontinued operations	(115)	(86)
Effect of exchange rate changes on cash and cash equivalents	(187)	460
(Decrease) increase in cash, cash equivalents and restricted cash	(2,993)	48
Cash, cash equivalents and restricted cash - beginning of the period	7,799	7,500	[1]
Cash, cash equivalents and restricted cash - end of the period	4,806	7,548	[1]
Cash paid during the period for:
Interest paid	112	140
Income taxes paid	$ 43	$ 31
[1]	Reclassified to conform with the current period presentation, see Note 2A(1).

Organization and Basis of Prese

Organization and Basis of Presentation	9 Months Ended
	Sep. 30, 2018
Organization and Basis of Presentation [Abstract]
Organization and Basis of Presentation	Note 1 - Organization and Basis of Presentation A. Description of business On Track Innovations Ltd. (the “Company”) was founded in 1990, in Israel. The Company and its subsidiaries (together the “Group”) are principally engaged in the field of design and development of cashless payment solutions. The Company’s shares are listed for trading on the Nasdaq Capital Market. The Company operates in two operating segments: (a) Retail and Mass Transit Ticketing, and (b) Petroleum. In addition to the two operating segments, certain products for the medical industry and other secure smart card solutions are classified under “Other” in segment analysis appearing in Note 10. B. Interim Unaudited Financial Information The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements and therefore should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. In the opinion of management, all adjustments considered necessary for a fair presentation, consisting of normal recurring adjustments, have been included. Operating results for the nine-month period ended September 30, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018. Use of Estimates: The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the assets, liabilities, revenue, costs, expenses and accumulated other comprehensive income/(loss) that are reported in the Interim Consolidated Financial Statements and accompanying disclosures. These estimates are based on management’s best knowledge of current events, historical experience, actions that the Company may undertake in the future and on various other assumptions that are believed to be reasonable under the circumstances. As a result, actual results may be different from these estimates. C. Divestiture of operations 1. In December 2013, the Company completed the sale of certain assets, subsidiaries and intellectual property (“IP”) relating to its Smart ID division, for a total purchase price of $10,000 in cash and an additional $12,500 subject to performance-based milestones. 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. (“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 agreed to pay the Company up to $1,500 in accordance with and subject to a certain earn-out mechanism. In November 2017, the Company commenced an arbitration procedure with SuperCom, in which the Company claims that additional earn-out payments have not been paid to the Company. SuperCom raised issues against the Company during the arbitration for material damages. The evidence in the arbitration were heard on March 6, 2018, and in the coming weeks the parties are expected to complete the submission of their written summaries, after which a decision will be given by the arbitrator. According to legal advice, the Company has good claims with respect to the issues that are included in the arbitration and the chances that the Company will be required to compensate SuperCom are low. The Company records the earn-out payments only when the consideration is determined to be realizable. The Company did not record or receive any contingent consideration during the nine months ended September 30, 2018 and 2017. 2. On September 14, 2016, the Company completed the sale of certain assets and IP related to its former parking segment 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. D. Event in the reporting period In accordance with management’s intention to reduce the size of the Company’s external loans and accompanying credit costs, during the third quarter of 2018, the Company significantly reduced the volume of the Company’s loans from banks.

Significant Accounting Policies

Significant Accounting Policies	9 Months Ended
	Sep. 30, 2018
Significant Accounting Policies [Abstract]
Significant Accounting Policies	Note 2 – Significant Accounting Policies Except as described below, these interim unaudited condensed consolidated financial statements have been prepared according to the same accounting policies as those discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. A. Recently Adopted Accounting Pronouncements 1. Restricted Cash and Cash Equivalents in Statement of Cash Flows In December 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, which requires amounts generally described as restricted cash and restricted cash equivalents to be included within cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown in the statement of cash flows. The Company has adopted ASU 2016-18 commencing from January 1, 2018. The Company has applied the guidance retrospectively to all periods presented. The following table provides a reconciliation of cash, cash equivalents, and restricted cash and cash equivalents reported within the accompanying consolidated balance sheets that sum to the total of the same such amounts presented in the accompanying consolidated statements of cash flows: September 30, December 31, 2018 2017 2017 2016 Cash and cash equivalents $ 4,514 $ 6,000 $ 6,742 $ 5,952 Restricted cash and cash equivalents (*) 292 1,548 1,057 1,548 Total cash, cash equivalents, and restricted cash and cash equivalents presented in the statements of cash flows $ 4,806 $ 7,548 $ 7,799 $ 7,500 (*) The restricted cash and cash equivalents are included in short-term investments in the accompanying consolidated balance sheets. 2. Revenue Recognition In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. The standard provides companies with a single model for use in accounting for revenue arising from contracts with customers and supersedes previous revenue recognition guidance, including industry-specific revenue guidance. The standard requires entities to follow a five step process: (1) identify the contract(s) with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) the entity satisfies a performance obligation. Revenues are recognized when control of the promised goods or services is transferred to the customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The Company has adopted ASU 2014-09 commencing from January 1, 2018 on a modified retrospective basis. The Company did not have a cumulative adjustment to retained earnings or an impact on its revenue recognition policies or on its consolidated financial statements as a result of the adoption of the new standard. The new standard requires the Company to provide more robust disclosures than required by previous guidance – see also Note 6. In addition, when the Company has an unconditional right to receive proceeds before the performance obligation was fulfilled, it is now required to record receivables against contract liabilities. B. Recent Accounting Pronouncements 1. In June 2018, the FASB issued ASU 2018-07, Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. ASU 2018-07 expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. The guidance is intended to align the accounting for such payments to nonemployees with the existing requirements for share-based payments granted to employees. ASU 2018-07 is effective for fiscal years beginning after December 15, 2018 and is to be adopted through a cumulative-effect adjustment to retained earnings as of January 1, 2019 for then outstanding share-based payments to nonemployees. The Company does not expect that the adoption of ASU 2018-07 will have a material impact on the Company’s results of operations and financial condition. 2. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which supersedes ASC 840, Leases. This ASU requires lessees to recognize a right-of-use asset and lease liability on the balance sheet for most leases, whereas currently only financing-type lease liabilities (capital leases) are recognized on the balance sheet. In addition, the definition of a lease has been revised with respect to when an arrangement conveys the right to control the use of the identified asset under the arrangement, which may result in changes to the classification of an arrangement as a lease. The ASU does not significantly change the lessees’ recognition, measurement and presentation of expenses and cash flows from the previous accounting standard. Lessors’ accounting under the ASU is largely unchanged from the previous accounting standard. The ASU expands the disclosure requirements of lease arrangements. Under current guidance, lessees and lessors will use a modified retrospective transition approach, which requires application of the new guidance at the beginning of the earliest comparative period presented in the year of adoption. The guidance is effective for interim and annual reporting periods beginning after December 15, 2018, with early adoption permitted. The Company currently expects to adopt this standard on January 1, 2019 and continues to evaluate the impact of this new standard on its financial position, results of operations and cash flows. The Company continues the process of identifying and categorizing its lease contracts and evaluating its current business processes and systems. In connection with other recent accounting pronouncements that the Company has not yet implemented and the Company’s assessment of the impacts they will have on the ongoing financial reporting, see Note 2W(4) in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017.

Other Receivables and Prepaid E

Other Receivables and Prepaid Expenses	9 Months Ended
	Sep. 30, 2018
Other Receivables and Prepaid Expenses [Abstract]
Other Receivables and Prepaid Expenses	Note 3 - Other Receivables and Prepaid Expenses September 30, December 31, 2018 2017 Government institutions $ 399 $ 263 Prepaid expenses 181 381 Supplier advances 1,519 122 Receivables under contractual obligations to be transferred to others (*) 361 446 Other receivables 216 351 $ 2,676 $ 1,563 (*) The Company’s subsidiary in Poland is required to collect certain fees that are to be transferred to local authorities.

Other Current Liabilities

Other Current Liabilities	9 Months Ended
	Sep. 30, 2018
Other Current Liabilities [Abstract]
Other Current Liabilities	Note 4 - Other Current Liabilities September 30, December 31, 2018 2017 Employees and related expenses $ 1,119 $ 1,073 Accrued expenses 804 1,054 Customer advances 58 178 Other current liabilities 152 116 $ 2,133 $ 2,421

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2018
Commitments and Contingencies [Abstract]
Commitments and Contingencies	Note 5 - Commitments and Contingencies A. Legal claims 1. In June 2013, prior to the Company’s divestiture of its SmartID division, Merwell Inc. (“Merwell”) filed a claim against the Company before an agreed-upon arbitrator alleging breach of contract in connection with certain commissions claimed to be owed to Merwell with respect to the division’s activities in Tanzania. These activities, along with all other activities of the SmartID division, were later assigned to and assumed by SuperCom in its purchase of the division. SuperCom undertook to indemnify the Company and hold it harmless against any liabilities the Company may incur in connection with Merwell’s consulting agreement and the arbitration. An arbitration decision was issued on February 21, 2016, awarding Merwell approximately $855 for outstanding commissions. The arbitration decision was appealed and the appeal was denied, and currently the awarded amount is approximately $1,050. To date SuperCom has failed to make the payment. However, as mentioned above, based on the agreement with SuperCom (which was granted an effect of a court judgement), SuperCom is liable for all the costs and liabilities arising out of this claim. Therefore, the financial statements do not include any provision for this claim. 2. On October 3, 2013, a financial claim was filed against the Company and its then French subsidiary, Parx France (in this paragraph, together, the “Defendants”), in the Commercial Court of Paris, France (in this paragraph, the “Court”). The sum of the claim is €1,500 ($1,743) 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. On October 25, 2017, the Court issued its ruling in this matter dismissing all claims against the Company but ordering Parx France to pay the plaintiff €50 ($58) plus interest in damages plus another approximately €5 ($6) in other fees and penalties. The Company offered to pay the amounts mentioned above to the plaintiff in consideration for not filing future appeals. The plaintiff rejected this offer and filed an appeal against Parx France and the Company claiming the sum of €503 ($584) plus interest and expenses. Based on the assessment of the Company’s external legal counsel, the Company’s management is of the opinion that the chances of the appeal being approved against the Company are low. B. Guarantees As of September 30, 2018, the Company has granted performance guarantees and guarantees to secure customer advances in the sum of $365. The expiration dates of the guarantees range from October 2018 to June 2019.

Revenues

Revenues	9 Months Ended
	Sep. 30, 2018
Revenue [Abstract]
Revenues	Note 6 – Revenues Disaggregation of revenue The following tables disaggregates the Company’s revenue by major source based on categories that depict its nature and timing as reviewed by management for the nine months and the three months ended September 30, 2018 : Nine months ended September 30 2018 Retail and Mass Transit Ticketing Petroleum Other Total Cashless payment products (A) $ 6,668 $ - $ - $ 6,668 Complete cashless payment solutions (B): Sales of products (B1) 2,820 2,881 - 5,701 Licensing fees, transaction fees and services (B2) 3,818 1,061 - 4,879 6,638 3,942 - 10,580 Medical and access control smart cards (C): Sales of products (C1) - - 906 906 Licensing fees, transaction fees and services (C2) - - 335 335 - - 1,241 1,241 Total revenues $ 13,306 $ 3,942 $ 1,241 $ 18,489 Three months ended September 30, 2018 Retail and Mass Transit Ticketing Petroleum Other Total Cashless payment products (A) $ 2,031 $ - $ - $ 2,031 Complete cashless payment solutions (B): Sales of products (B1) 1,460 934 - 2,394 Licensing fees, transaction fees and services (B2) 1,249 383 - 1,632 2,709 1,317 - 4,026 Medical and access control smart cards (C): Sales of products (C1) - - 302 302 Licensing fees, transaction fees and services (C2) - - 114 114 - - 416 416 Total revenues $ 4,740 $ 1,317 $ 416 $ 6,473 Performance obligations Below is a listing of performance obligations for our main revenue streams: A. Cashless payment products – The performance obligation is the selling of contactless payment products. Most of those products are Near Field Communication (NFC) readers. For such sales the performance obligation, transfer of control and revenue recognition occurs when the products are delivered. B. Complete cashless payment solutions – The complete solution includes selling of products and complementary services, as follows: 1. Sales of products – ● Selling of contactless payment products (see A above) together with payment gateways and machine-to-machine controllers. ● Selling of petroleum payment solutions including site and vehicle equipment. For such sales, the performance obligation, transfer of control and revenue recognition occurs when the products are delivered. 2. Licensing fees, transaction fees and services - The types of arrangements and their main performance obligations are as follows: ● To provide terminal management system licensing for software that is responsible for remote terminal management and cloud-based software licensing which provide data insights. For such services, the revenue recognition occurs as the services are rendered since the performance obligation is satisfied over time. ● To enable loading and sale of electronic contactless and paper cards. For such transaction fees the revenue recognition occurs on the transaction date. ● To provide technical and customer services for products. For such services, the performance obligation is satisfied over time and therefore revenue recognition occurs as the services are rendered. C. Medical and access control smart cards – 1. Sales of products – The performance obligation is the selling of readers and smart electronic cards for the purposes of human identifying. For such sales the performance obligation, transfer of control and revenue recognition occurs when the products are delivered. 2. Licensing fees, transaction fees and services – The main performance obligation is to provide technical support. For such transaction fees that are based on actual usage, revenue recognition occurs only when usage occurs. The Company includes a warranty in connection with certain contracts with customers, which are not considered to be separate performance obligations. The cost to the Company of this warranty is insignificant. Contract balances September 30, December 31, 2018 2017 Trade receivables, net of allowance for doubtful accounts $ 4,026 $ 5,827 Customer advances $ 58 $ 178 Accounts receivable are recognized when the right to consideration becomes unconditional based upon contractual billing schedules. Transaction price and variable consideration The transaction price is the amount of consideration to which the Company expects to be entitled in exchange for transferring goods or services to a customer, excluding amounts collected on behalf of third parties. In certain arrangements with variable consideration, revenue is recognized over time as it mainly is attributed to ongoing services provided. An immaterial amount which is related to the product is not recognized upon delivery since it is not probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved.

Discontinued Operations

Discontinued Operations	9 Months Ended
	Sep. 30, 2018
Discontinued Operations [Abstract]
Discontinued operations	Note 7 – Discontinued operations As described in Note 1C, the Company divested its interest in the SmartID division and its parking segment, and presented these activities as discontinued operations. Set forth below are the results of the discontinued operations: Three months ended September 30, Nine months ended September 30, 2018 2017 2018 2017 Expenses (26 ) (11 ) (127 ) (94 ) Other income, net - (*) 1,452 13 (*) 1,459 Net profit (loss) from discontinued operations (26 ) 1,441 (114 ) 1,365 (*) On August 23, 2017, a judgment was issued by the Israeli Central District Court regarding the Company’s lawsuit against Harel Insurance Company Ltd. (“Harel”) for damages incurred by the Company due to flooding in a subcontractor’s manufacturing site. The judgment determined that an amount of $1,600, net be awarded to cover the Company’s damages. On October 10, 2017, Harel submitted its appeal of the judgment to the Israeli Supreme Court as well as a request for stay of judgment. On October 30, 2017, the Court denied the requested stay. Based on the advice of counsel, the Company currently believes that there are sufficient grounds on which to uphold the District Court’s ruling and, as such, Harel’s appeal will be denied. The appeal hearing is scheduled for May 29, 2019.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2018
Fair Value of Financial Instruments [Abstract]
Fair Value of Financial Instruments	Note 8 - Fair Value of Financial Instruments The Company’s financial instruments consist mainly of cash and cash equivalents, short-term interest bearing investments, accounts receivable, restricted deposits for employee benefits, accounts payable and short-term and long-term loans. Fair value for the measurement of financial assets and liabilities is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. The Company utilizes a valuation hierarchy for disclosure of the inputs for fair value measurement. This hierarchy prioritizes the inputs into three broad levels as follows: ● Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date. ● Level 2 Inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. ● Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at measurement date. By distinguishing between inputs that are observable in the market place, and therefore more objective, and those that are unobservable and therefore more subjective, the hierarchy is designed to indicate the relative reliability of the fair value measurements. A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The Company, in estimating fair value for financial instruments, 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. As of September 30, 2018, the Company held approximately $1,391 of short-term bank deposits (as of December 31, 2017, $3,331). As of September 30, 2018 and December 31, 2017, short-term deposits in the amount of $292 and $1,057, respectively, have been pledged as security in respect of guarantees granted in respect of performance guarantees, loans and credit lines received from a bank and cannot be pledged to others or withdrawn without the consent of the bank.

Equity

Equity	9 Months Ended
	Sep. 30, 2018
Equity [Abstract]
Equity	Note 9 – Equity A. Stock option plans During each of the nine-month periods ended September 30, 2018 and September 30, 2017, 100,000 options were granted. The vesting period for the options is three years. The exercise prices for the options that were granted during the nine months ended September 30, 2018 and September 30, 2017, are $1.33 and $1.58, respectively. Those options expire up to five years after the date of grant. Any options which are forfeited or cancelled before expiration become available for future grants under the Company’s option plan. The fair value of each option granted to employees during the nine months ended September 30, 2018 and September 30, 2017 was estimated on the date of grant, using the Black-Scholes model and the following assumptions: Nine months ended September 30, 2018 2017 Expected dividend yield 0 % 0 % Expected volatility 80 % 74 % Risk-free interest rate 1.92 % 1.35 % Expected life - in years 2.33 3.5 1. Dividend yield of zero percent for all periods. 2. Expected average volatility represents a weighted average standard deviation rate for the price of the Company’s ordinary shares on Nasdaq. 3. Risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant. 4. For options granted during the nine months ended September 30, 2018 - estimated expected lives are based on historical grants data. For the nine months ended September 30, 2017 estimated expected lives are according to the simplified method. The Company’s options activity (including options to non-employees) during the nine months ended September 30, 2018 and options outstanding and options exercisable as of December 31, 2017 and September 30, 2018, are summarized in the following table: Number of Weighted options average exercise outstanding price per share Outstanding – December 31, 2017 1,495,000 $ 1.27 Options granted 100,000 1.33 Options expired or forfeited (196,335 ) 1.25 Options exercised (39,999 ) 0.86 Outstanding – September 30, 2018 1,358,666 1.29 Exercisable as of: December 31, 2017 681,321 $ 1.45 September 30, 2018 696,655 $ 1.39 The weighted average fair value of options granted during the nine months ended September 30, 2018 and during the nine months ended September 30, 2017 is $0.65 and $0.93, respectively, per option. The aggregate intrinsic value of outstanding options as of September 30, 2018 and December 31, 2017 is approximately $105 and $448, respectively. The aggregate intrinsic value of exercisable options as of September 30, 2018 and December 31, 2017 is approximately $85 and $206, respectively. The following table summarizes information about options outstanding and exercisable (including options to non-employees) as of September 30, 2018: Options outstanding Options exercisable Number Weighted Number Weighted Outstanding average Weighted Outstanding average Weighted as of remaining Average As of remaining Average Range of September 30, contractual Exercise September 30, contractual Exercise exercise price ($) 2018 life (years) Price 2018 life (years) Price 0.44- 0.90 420,000 2.23 $ 0.74 343,333 2.21 $ 0.74 1.07-1.68 713,666 3.65 1.23 128,322 2.99 1.23 2.32-2.36 185,000 0.59 2.35 185,000 0.59 2.35 3.03 40,000 0.98 $ 3.03 40,000 0.98 $ 3.03 1,358,666 2.72 696,655 1.85 As of September 30, 2018, there was approximately $247 of total unrecognized compensation cost related to non-vested stock-based compensation arrangements. That cost is expected to be recognized over a weighted-average period of approximately 1.2 years. During the nine months ended September 30, 2018 and September 30, 2017, the Company recorded stock-based compensation expenses in the amount of $180 and $238, respectively, in accordance with ASC 718, “Compensation-Stock Compensation.” B. Warrants 1. During the nine months ended September 30, 2018, no warrants expired or were exercised into ordinary shares. 2. As of September 30, 2018, there are remaining 40,000 outstanding warrants issued to one of the Company’s consultants during 2016 with a per share exercise price of $0.95. The warrants expire during 2019. C. Stock options and warrants in the amounts of 1,398,666 and 1,433,500 outstanding as of the nine months ended September 30, 2018 and 2017, respectively, have been excluded from the calculation of the diluted net loss from continuing operations per ordinary share because all such securities have an anti-dilutive effect for all periods presented. D. Shares to non-employees During the nine months ended September 30, 2018 and September 30, 2017, the Company issued 80,000 and 45,000 ordinary shares, respectively, to its consultants. The expenses that are recognized due to those grants are immaterial and are presented within ’stock-based compensation’ in the statement of changes in equity for the nine months ended September 30, 2018 and September 30, 2017.

Operating Segments

Operating Segments	9 Months Ended
	Sep. 30, 2018
Operating Segments [Abstract]
Operating segments	Note 10 - Operating segments For the purposes of allocating resources and assessing performance in order to improve profitability, the Company’s chief operating decision maker (“CODM”) examines two segments which are the Company’s strategic business units: (1) Retail and Mass Transit Ticketing; and (2) Petroleum. In addition to its two reportable segments, certain products for the medical industry and other secure smart card solutions are classified under the Company’s “Other” segment. Information regarding the results of each reportable segment is included below based on the internal management reports that are reviewed by the CODM. Three months ended September 30, 2018 Petroleum Retail and Mass Transit Ticketing Other Consolidated Revenues $ 1,317 $ 4,740 $ 416 $ 6,473 Reportable segment gross profit (*) 682 2,706 237 3,625 Reconciliation of reportable segment gross profit to gross profit for the period Depreciation (202 ) Stock-based compensation (1 ) Gross profit for the period $ 3,422 Three months ended September 30, 2017 Petroleum Retail and Mass Transit Ticketing Other Consolidated Revenues $ 917 $ 3,231 $ 522 $ 4,670 Reportable segment gross profit (*) 493 1,859 325 2,677 Reconciliation of reportable segment gross profit to gross profit for the period Depreciation (199 ) Stock-based compensation - Gross profit for the period $ 2,478 Nine months ended September 30, 2018 Petroleum Retail and Mass Transit Ticketing Other Consolidated Revenues $ 3,942 $ 13,306 $ 1,241 $ 18,489 Reportable segment gross profit (*) 2,000 7,455 885 10,340 Reconciliation of reportable segment gross profit to profit for the period Depreciation (626 ) Stock-based compensation (3 ) Gross profit for the period $ 9,711 Nine months ended September 30, 2017 Petroleum Retail and Mass Transit Ticketing Other Consolidated Revenues $ 3,645 $ 10,654 $ 1,337 $ 15,636 Reportable segment gross profit (*) 1,889 6,068 794 8,751 Reconciliation of reportable segment gross profit to profit for the period Depreciation (582 ) Stock-based compensation (1 ) Gross profit for the period $ 8,168 (*) Gross profit as reviewed by the CODM, represents gross profit, adjusted to exclude depreciation and stock-based compensation.

Significant Accounting Polici_2

Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2018
Significant Accounting Policies [Abstract]
Recently Adopted Accounting Pronouncements	A. Recently Adopted Accounting Pronouncements 1. Restricted Cash and Cash Equivalents in Statement of Cash Flows In December 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, which requires amounts generally described as restricted cash and restricted cash equivalents to be included within cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown in the statement of cash flows. The Company has adopted ASU 2016-18 commencing from January 1, 2018. The Company has applied the guidance retrospectively to all periods presented. The following table provides a reconciliation of cash, cash equivalents, and restricted cash and cash equivalents reported within the accompanying consolidated balance sheets that sum to the total of the same such amounts presented in the accompanying consolidated statements of cash flows: September 30, December 31, 2018 2017 2017 2016 Cash and cash equivalents $ 4,514 $ 6,000 $ 6,742 $ 5,952 Restricted cash and cash equivalents (*) 292 1,548 1,057 1,548 Total cash, cash equivalents, and restricted cash and cash equivalents presented in the statements of cash flows $ 4,806 $ 7,548 $ 7,799 $ 7,500 (*) The restricted cash and cash equivalents are included in short-term investments in the accompanying consolidated balance sheets. 2. Revenue Recognition In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. The standard provides companies with a single model for use in accounting for revenue arising from contracts with customers and supersedes previous revenue recognition guidance, including industry-specific revenue guidance. The standard requires entities to follow a five step process: (1) identify the contract(s) with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) the entity satisfies a performance obligation. Revenues are recognized when control of the promised goods or services is transferred to the customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The Company has adopted ASU 2014-09 commencing from January 1, 2018 on a modified retrospective basis. The Company did not have a cumulative adjustment to retained earnings or an impact on its revenue recognition policies or on its consolidated financial statements as a result of the adoption of the new standard. The new standard requires the Company to provide more robust disclosures than required by previous guidance – see also Note 6. In addition, when the Company has an unconditional right to receive proceeds before the performance obligation was fulfilled, it is now required to record receivables against contract liabilities.
Recent Accounting Pronouncements	B. Recent Accounting Pronouncements 1. In June 2018, the FASB issued ASU 2018-07, Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. ASU 2018-07 expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. The guidance is intended to align the accounting for such payments to nonemployees with the existing requirements for share-based payments granted to employees. ASU 2018-07 is effective for fiscal years beginning after December 15, 2018 and is to be adopted through a cumulative-effect adjustment to retained earnings as of January 1, 2019 for then outstanding share-based payments to nonemployees. The Company does not expect that the adoption of ASU 2018-07 will have a material impact on the Company’s results of operations and financial condition. 2. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which supersedes ASC 840, Leases. This ASU requires lessees to recognize a right-of-use asset and lease liability on the balance sheet for most leases, whereas currently only financing-type lease liabilities (capital leases) are recognized on the balance sheet. In addition, the definition of a lease has been revised with respect to when an arrangement conveys the right to control the use of the identified asset under the arrangement, which may result in changes to the classification of an arrangement as a lease. The ASU does not significantly change the lessees’ recognition, measurement and presentation of expenses and cash flows from the previous accounting standard. Lessors’ accounting under the ASU is largely unchanged from the previous accounting standard. The ASU expands the disclosure requirements of lease arrangements. Under current guidance, lessees and lessors will use a modified retrospective transition approach, which requires application of the new guidance at the beginning of the earliest comparative period presented in the year of adoption. The guidance is effective for interim and annual reporting periods beginning after December 15, 2018, with early adoption permitted. The Company currently expects to adopt this standard on January 1, 2019 and continues to evaluate the impact of this new standard on its financial position, results of operations and cash flows. The Company continues the process of identifying and categorizing its lease contracts and evaluating its current business processes and systems. In connection with other recent accounting pronouncements that the Company has not yet implemented and the Company’s assessment of the impacts they will have on the ongoing financial reporting, see Note 2W(4) in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017.

Significant Accounting Polici_3

Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2018
Significant Accounting Policies [Abstract]
Schedule of reconciliation of cash, cash equivalents, and restricted cash and cash equivalents	September 30, December 31, 2018 2017 2017 2016 Cash and cash equivalents $ 4,514 $ 6,000 $ 6,742 $ 5,952 Restricted cash and cash equivalents (*) 292 1,548 1,057 1,548 Total cash, cash equivalents, and restricted cash and cash equivalents presented in the statements of cash flows $ 4,806 $ 7,548 $ 7,799 $ 7,500 (*) The restricted cash and cash equivalents are included in short-term investments in the accompanying consolidated balance sheets.

Other Receivables and Prepaid_2

Other Receivables and Prepaid Expenses (Tables)	9 Months Ended
	Sep. 30, 2018
Other Receivables and Prepaid Expenses [Abstract]
Schedule of other receivables and prepaid expenses	September 30, December 31, 2018 2017 Government institutions $ 399 $ 263 Prepaid expenses 181 381 Supplier advances 1,519 122 Receivables under contractual obligations to be transferred to others (*) 361 446 Other receivables 216 351 $ 2,676 $ 1,563 (*) The Company’s subsidiary in Poland is required to collect certain fees that are to be transferred to local authorities.

Other Current Liabilities (Tabl

Other Current Liabilities (Tables)	9 Months Ended
	Sep. 30, 2018
Other Current Liabilities [Abstract]
Schedule of other current liabilities	September 30, December 31, 2018 2017 Employees and related expenses $ 1,119 $ 1,073 Accrued expenses 804 1,054 Customer advances 58 178 Other current liabilities 152 116 $ 2,133 $ 2,421

Revenues (Tables)

Revenues (Tables)	9 Months Ended
	Sep. 30, 2018
Revenue [Abstract]
Schedule of disaggregation of revenue	Nine months ended September 30 2018 Retail and Mass Transit Ticketing Petroleum Other Total Cashless payment products (A) $ 6,668 $ - $ - $ 6,668 Complete cashless payment solutions (B): Sales of products (B1) 2,820 2,881 - 5,701 Licensing fees, transaction fees and services (B2) 3,818 1,061 - 4,879 6,638 3,942 - 10,580 Medical and access control smart cards (C): Sales of products (C1) - - 906 906 Licensing fees, transaction fees and services (C2) - - 335 335 - - 1,241 1,241 Total revenues $ 13,306 $ 3,942 $ 1,241 $ 18,489 Three months ended September 30, 2018 Retail and Mass Transit Ticketing Petroleum Other Total Cashless payment products (A) $ 2,031 $ - $ - $ 2,031 Complete cashless payment solutions (B): Sales of products (B1) 1,460 934 - 2,394 Licensing fees, transaction fees and services (B2) 1,249 383 - 1,632 2,709 1,317 - 4,026 Medical and access control smart cards (C): Sales of products (C1) - - 302 302 Licensing fees, transaction fees and services (C2) - - 114 114 - - 416 416 Total revenues $ 4,740 $ 1,317 $ 416 $ 6,473 A. Cashless payment products – The performance obligation is the selling of contactless payment products. Most of those products are Near Field Communication (NFC) readers. For such sales the performance obligation, transfer of control and revenue recognition occurs when the products are delivered. B. Complete cashless payment solutions – The complete solution includes selling of products and complementary services, as follows: 1. Sales of products – ● Selling of contactless payment products (see A above) together with payment gateways and machine-to-machine controllers. ● Selling of petroleum payment solutions including site and vehicle equipment. For such sales, the performance obligation, transfer of control and revenue recognition occurs when the products are delivered. 2. Licensing fees, transaction fees and services - The types of arrangements and their main performance obligations are as follows: ● To provide terminal management system licensing for software that is responsible for remote terminal management and cloud-based software licensing which provide data insights. For such services, the revenue recognition occurs as the services are rendered since the performance obligation is satisfied over time. ● To enable loading and sale of electronic contactless and paper cards. For such transaction fees the revenue recognition occurs on the transaction date. ● To provide technical and customer services for products. For such services, the performance obligation is satisfied over time and therefore revenue recognition occurs as the services are rendered. C. Medical and access control smart cards – 1. Sales of products – The performance obligation is the selling of readers and smart electronic cards for the purposes of human identifying. For such sales the performance obligation, transfer of control and revenue recognition occurs when the products are delivered. 2. Licensing fees, transaction fees and services – The main performance obligation is to provide technical support. For such transaction fees that are based on actual usage, revenue recognition occurs only when usage occurs.
Schedule of contract balances	September 30, December 31, 2018 2017 Trade receivables, net of allowance for doubtful accounts $ 4,026 $ 5,827 Customer advances $ 58 $ 178

Discontinued Operations (Tables

Discontinued Operations (Tables)	9 Months Ended
	Sep. 30, 2018
Discontinued Operations [Abstract]
Schedule of results of the discontinued operations	Three months ended September 30, Nine months ended September 30, 2018 2017 2018 2017 Expenses (26 ) (11 ) (127 ) (94 ) Other income, net - (*) 1,452 13 (*) 1,459 Net profit (loss) from discontinued operations (26 ) 1,441 (114 ) 1,365 (*) On August 23, 2017, a judgment was issued by the Israeli Central District Court regarding the Company’s lawsuit against Harel Insurance Company Ltd. (“Harel”) for damages incurred by the Company due to flooding in a subcontractor’s manufacturing site. The judgment determined that an amount of $1,600, net be awarded to cover the Company’s damages. On October 10, 2017, Harel submitted its appeal of the judgment to the Israeli Supreme Court as well as a request for stay of judgment. On October 30, 2017, the Court denied the requested stay. Based on the advice of counsel, the Company currently believes that there are sufficient grounds on which to uphold the District Court’s ruling and, as such, Harel’s appeal will be denied. The appeal hearing is scheduled for May 29, 2019.

Equity (Tables)

Equity (Tables)	9 Months Ended
	Sep. 30, 2018
Equity [Abstract]
Schedule of Black-Scholes model and assumptions	Nine months ended September 30, 2018 2017 Expected dividend yield 0 % 0 % Expected volatility 80 % 74 % Risk-free interest rate 1.92 % 1.35 % Expected life - in years 2.33 3.5
Schedule of stock options activity	Number of Weighted options average exercise outstanding price per share Outstanding – December 31, 2017 1,495,000 $ 1.27 Options granted 100,000 1.33 Options expired or forfeited (196,335 ) 1.25 Options exercised (39,999 ) 0.86 Outstanding – September 30, 2018 1,358,666 1.29 Exercisable as of: December 31, 2017 681,321 $ 1.45 September 30, 2018 696,655 $ 1.39
Schedule of options outstanding and exercisable	Options outstanding Options exercisable Number Weighted Number Weighted Outstanding average Weighted Outstanding average Weighted as of remaining Average As of remaining Average Range of September 30, contractual Exercise September 30, contractual Exercise exercise price ($) 2018 life (years) Price 2018 life (years) Price 0.44- 0.90 420,000 2.23 $ 0.74 343,333 2.21 $ 0.74 1.07-1.68 713,666 3.65 1.23 128,322 2.99 1.23 2.32-2.36 185,000 0.59 2.35 185,000 0.59 2.35 3.03 40,000 0.98 $ 3.03 40,000 0.98 $ 3.03 1,358,666 2.72 696,655 1.85

Operating Segments (Tables)

Operating Segments (Tables)	9 Months Ended
	Sep. 30, 2018
Operating Segments [Abstract]
Schedule of information regarding results of each reportable segment	Three months ended September 30, 2018 Petroleum Retail and Mass Transit Ticketing Other Consolidated Revenues $ 1,317 $ 4,740 $ 416 $ 6,473 Reportable segment gross profit (*) 682 2,706 237 3,625 Reconciliation of reportable segment gross profit to gross profit for the period Depreciation (202 ) Stock-based compensation (1 ) Gross profit for the period $ 3,422 Three months ended September 30, 2017 Petroleum Retail and Mass Transit Ticketing Other Consolidated Revenues $ 917 $ 3,231 $ 522 $ 4,670 Reportable segment gross profit (*) 493 1,859 325 2,677 Reconciliation of reportable segment gross profit to gross profit for the period Depreciation (199 ) Stock-based compensation - Gross profit for the period $ 2,478 Nine months ended September 30, 2018 Petroleum Retail and Mass Transit Ticketing Other Consolidated Revenues $ 3,942 $ 13,306 $ 1,241 $ 18,489 Reportable segment gross profit (*) 2,000 7,455 885 10,340 Reconciliation of reportable segment gross profit to profit for the period Depreciation (626 ) Stock-based compensation (3 ) Gross profit for the period $ 9,711 Nine months ended September 30, 2017 Petroleum Retail and Mass Transit Ticketing Other Consolidated Revenues $ 3,645 $ 10,654 $ 1,337 $ 15,636 Reportable segment gross profit (*) 1,889 6,068 794 8,751 Reconciliation of reportable segment gross profit to profit for the period Depreciation (582 ) Stock-based compensation (1 ) Gross profit for the period $ 8,168 (*) Gross profit as reviewed by the CODM, represents gross profit, adjusted to exclude depreciation and stock-based compensation.

Organization and Basis of Pre_2

Organization and Basis of Presentation (Details) $ in Thousands	1 Months Ended		9 Months Ended
	Apr. 20, 2016	Dec. 31, 2013USD ($)	Sep. 30, 2018Segments
Organization and Basis of Presentation (Textual)
Total purchase price in cash		$ 10,000
Additional purchase price		$ 12,500
Settlement agreement resolving, description	On April 20, 2016, the purchaser of the Smart ID division, SuperCom Ltd. ("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 agreed to pay the Company up to $1,500 in accordance with and subject to a certain earn-out mechanism.
Number of operating segments | Segments			2

Significant Accounting Polici_4

Significant Accounting Policies (Details) - USD ($) $ in Thousands		Sep. 30, 2018	Dec. 31, 2017	Sep. 30, 2017		Dec. 31, 2016
Significant Accounting Policies [Abstract]
Cash and cash equivalents		$ 4,514	$ 6,742	$ 6,000		$ 5,952
Restricted cash and cash equivalents	[1]	292	1,057	1,548		1,548
Total cash, cash equivalents, and restricted cash and cash equivalents presented in the statements of cash flows		$ 4,806	$ 7,799	$ 7,548	[2]	$ 7,500	[2]
[1]	The restricted cash and cash equivalents are included in short-term investments in the accompanying consolidated balance sheets.
[2]	Reclassified to conform with the current period presentation, see Note 2A(1).

Other Receivables and Prepaid_3

Other Receivables and Prepaid Expenses (Details) - USD ($) $ in Thousands		Sep. 30, 2018	Dec. 31, 2017
Other Receivables and Prepaid Expenses [Abstract]
Government institutions		$ 399	$ 263
Prepaid expenses		181	381
Supplier advances		1,519	122
Receivables under contractual obligations to be transferred to others	[1]	361	446
Other receivables		216	351
Total other receivables and prepaid expenses		$ 2,676	$ 1,563
[1]	The Company's subsidiary in Poland is required to collect certain fees that are to be transferred to local authorities.

Other Current Liabilities (Deta

Other Current Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Other Current Liabilities [Abstract]
Employees and related expenses	$ 1,119	$ 1,073
Accrued expenses	804	1,054
Customer advances	58	178
Other current liabilities	152	116
Total other current liabilities	$ 2,133	$ 2,421

Commitments and Contingencies (

Commitments and Contingencies (Details) € in Thousands, $ in Thousands	Oct. 03, 2013USD ($)	Oct. 03, 2013EUR (€)	Oct. 25, 2017USD ($)	Oct. 25, 2017EUR (€)	Feb. 21, 2016USD ($)	Sep. 30, 2018USD ($)
Commitments and Contingencies (Textual)
Guarantees to secure customer advances						$ 365
Guarantees expiration dates description						The expiration dates of the guarantees range from October 2018 to June 2019.
Payment of interest plus and cost			$ 58	€ 50
Other fees and penalties			$ 6	€ 5
Arbitration decision						$ 1,050
Merwell Inc. [Member]
Commitments and Contingencies (Textual)
Outstanding commissions arbitration					$ 855
French subsidiary [Member]
Commitments and Contingencies (Textual)
Financial claim field	$ 1,743	€ 1,500
Parx France [Member]
Commitments and Contingencies (Textual)
Financial claim field	$ 584	€ 503

Revenues (Details)

Revenues (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Disaggregation of Revenue [Line Items]
Cashless payment products	[1]	$ 2,031		$ 6,668
Complete cashless payment solutions:
Sales of products	[2]	2,394		5,701
Licensing fees, transaction fees and services	[3]	1,632		4,879
Total		4,026		10,580
Medical and access control smart cards:
Sales of products	[4]	302		906
Licensing fees, transaction fees and services	[5]	114		335
Total		416		1,241
Total revenues		6,473	$ 4,670	18,489	$ 15,636
Petroleum [Member]
Disaggregation of Revenue [Line Items]
Cashless payment products	[1]
Complete cashless payment solutions:
Sales of products	[2]	934		2,881
Licensing fees, transaction fees and services	[3]	383		1,061
Total		1,317		3,942
Medical and access control smart cards:
Sales of products	[4]
Licensing fees, transaction fees and services	[5]
Total
Total revenues		1,317		3,942
Retail and Mass Transit Ticketing [Member]
Disaggregation of Revenue [Line Items]
Cashless payment products	[1]	2,031		6,668
Complete cashless payment solutions:
Sales of products	[2]	1,460		2,820
Licensing fees, transaction fees and services	[3]	1,249		3,818
Total		2,709		6,638
Medical and access control smart cards:
Sales of products	[4]
Licensing fees, transaction fees and services	[5]
Total
Total revenues		4,740		13,306
Other [Member]
Disaggregation of Revenue [Line Items]
Cashless payment products	[1]
Complete cashless payment solutions:
Sales of products	[2]
Licensing fees, transaction fees and services	[3]
Total
Medical and access control smart cards:
Sales of products	[4]	302		906
Licensing fees, transaction fees and services	[5]	114		335
Total		416		1,241
Total revenues		$ 416		$ 1,241
[1]	Cashless payment products - The performance obligation is the selling of contactless payment products. Most of those products are Near Field Communication (NFC) readers. For such sales the performance obligation, transfer of control and revenue recognition occurs when the products are delivered.
[2]	Sales of products - Selling of contactless payment products (see A above) together with payment gateways and machine-to-machine controllers. Selling of petroleum payment solutions including site and vehicle equipment. For such sales, the performance obligation, transfer of control and revenue recognition occurs when the products are delivered.
[3]	Licensing fees, transaction fees and services - The types of arrangements and their main performance obligations are as follows: To provide terminal management system licensing for software that is responsible for remote terminal management and cloud-based software licensing which provide data insights. For such services, the revenue recognition occurs as the services are rendered since the performance obligation is satisfied over time. To enable loading and sale of electronic contactless and paper cards. For such transaction fees the revenue recognition occurs on the transaction date. To provide technical and customer services for products. For such services, the performance obligation is satisfied over time and therefore revenue recognition occurs as the services are rendered.
[4]	Sales of products - The performance obligation is the selling of readers and smart electronic cards for the purposes of human identifying. For such sales the performance obligation, transfer of control and revenue recognition occurs when the products are delivered.
[5]	Licensing fees, transaction fees and services - The main performance obligation is to provide technical support. For such transaction fees that are based on actual usage, revenue recognition occurs only when usage occurs.

Revenues (Details 1)

Revenues (Details 1) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Revenue [Abstract]
Trade receivables, net of allowance for doubtful accounts	$ 4,026	$ 5,827
Customer advances	$ 58	$ 178

Discontinued Operations (Detail

Discontinued Operations (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017		Sep. 30, 2018	Sep. 30, 2017
Discontinued Operations [Abstract]
Expenses	$ (26)	$ (11)		$ (127)	$ (94)
Other income, net		1,452	[1]	13	1,459	[1]
Net profit (loss) from discontinued operations	$ (26)	$ 1,441		$ (114)	$ 1,365
[1]	On August 23, 2017, a judgment was issued by the Israeli Central District Court regarding the Company's lawsuit against Harel Insurance Company Ltd. ("Harel") for damages incurred by the Company due to flooding in a subcontractor's manufacturing site. The judgment determined that an amount of $1,600, net be awarded to cover the Company's damages. On October 10, 2017, Harel submitted its appeal of the judgment to the Israeli Supreme Court as well as a request for stay of judgment. On October 30, 2017, the Court denied the requested stay. Based on the advice of counsel, the Company currently believes that there are sufficient grounds on which to uphold the District Court's ruling and, as such, Harel's appeal will be denied. The appeal hearing is scheduled for May 29, 2019.

Discontinued Operations (Deta_2

Discontinued Operations (Details Textual)	1 Months Ended
	Aug. 23, 2017
Discontinued Operations (Textual)
Description of judgment determined	The judgment determined that an amount of $1,600, net be awarded to cover the Company's damages. On October 10, 2017, Harel submitted its appeal of the judgment to the Israeli Supreme Court as well as a request for stay of judgment.

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Fair Value of Financial Instruments (Textual)
Short-term bank deposits	$ 1,391	$ 3,331
Short-term bank deposit pledged as security	$ 292	$ 1,057

Equity (Details)

Equity (Details)	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Equity [Abstract]
Expected dividend yield	0.00%	0.00%
Expected volatility	80.00%	74.00%
Risk-free interest rate	1.92%	1.35%
Expected life - in years	2 years 3 months 29 days	3 years 6 months

Equity (Details 1)

Equity (Details 1) - Stock option plans [Member] - $ / shares	9 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Number of options outstanding
Outstanding - Beginning Balance	1,495,000
Options granted	100,000
Options expired or forfeited	(196,335)
Options exercised	(39,999)
Outstanding - Ending Balance	1,358,666
Exercisable	696,655	681,321
Weighted average exercise price per share
Outstanding - Beginning Balance	$ 1.27
Options granted	1.33
Options expired or forfeited	1.25
Options exercised	0.86
Outstanding - Ending Balance	1.29
Exercisable	$ 1.39	$ 1.45

Equity (Details 2)

Equity (Details 2)	9 Months Ended
	Sep. 30, 2018$ / sharesshares
Options outstanding
Number Outstanding | shares	1,358,666
Weighted average remaining contractual life (years)	2 years 8 months 19 days
Options exercisable
Number outstanding | shares	696,655
Weighted average remaining contractual life (years)	1 year 10 months 6 days
0.44-0.90 [Member]
Range of exercise price
Exercise price, lower limit	$ 0.44
Exercise price, upper limit	$ 0.90
Options outstanding
Number Outstanding | shares	420,000
Weighted average remaining contractual life (years)	2 years 2 months 23 days
Weighted Average Exercise Price	$ 0.74
Options exercisable
Number outstanding | shares	343,333
Weighted average remaining contractual life (years)	2 years 2 months 16 days
Weighted Average Exercise Price	$ 0.74
1.07-1.68 [Member]
Range of exercise price
Exercise price, lower limit	1.07
Exercise price, upper limit	$ 1.68
Options outstanding
Number Outstanding | shares	713,666
Weighted average remaining contractual life (years)	3 years 7 months 24 days
Weighted Average Exercise Price	$ 1.23
Options exercisable
Number outstanding | shares	128,322
Weighted average remaining contractual life (years)	2 years 11 months 26 days
Weighted Average Exercise Price	$ 1.23
2.32-2.36 [Member]
Range of exercise price
Exercise price, lower limit	2.32
Exercise price, upper limit	$ 2.36
Options outstanding
Number Outstanding | shares	185,000
Weighted average remaining contractual life (years)	7 months 2 days
Weighted Average Exercise Price	$ 2.35
Options exercisable
Number outstanding | shares	185,000
Weighted average remaining contractual life (years)	7 months 2 days
Weighted Average Exercise Price	$ 2.35
3.03 [Member]
Range of exercise price
Exercise price	$ 3.03
Options outstanding
Number Outstanding | shares	40,000
Weighted average remaining contractual life (years)	11 months 23 days
Weighted Average Exercise Price	$ 3.03
Options exercisable
Number outstanding | shares	40,000
Weighted average remaining contractual life (years)	11 months 23 days
Weighted Average Exercise Price	$ 3.03

Equity (Details Textual)

Equity (Details Textual) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Equity (Textual)
Warrants expires terms	2,019
Outstanding warrants	40,000
Share exercise price	$ 0.95
Stock-based compensation expenses	$ 180	$ 238
Stock options and warrants outstanding	1,398,666	1,433,500
Consultants [Member]
Equity (Textual)
Granted ordinary shares to non-employees	80,000	45,000
Stock option plans [Member]
Equity (Textual)
Options granted	100,000	100,000
Weighted average fair value of options granted	$ 0.65	$ 0.93
Aggregate intrinsic value of outstanding options	$ 105		$ 448
Aggregate intrinsic value of exercisable options	85		$ 206
Unrecognized compensation cost	$ 247
Unrecognized compensation cost, weighted-average period	1 year 2 months 12 days
Vesting period for the options terms	3 years
Exercise prices	$ 1.33	$ 1.58
Options expires terms	5 years

Operating Segments (Details)

Operating Segments (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Segment Reporting Information [Line Items]
Revenues		$ 6,473	$ 4,670	$ 18,489	$ 15,636
Reportable segment gross profit	[1]	3,625	2,677	10,340	8,751
Reconciliation of reportable segment gross profit to gross profit for the period
Depreciation		(202)	(199)	(626)	(582)
Stock-based compensation		(1)		(3)	(1)
Gross profit for the period		3,422	2,478	9,711	8,168
Retail and Mass Transit Ticketing [Member]
Segment Reporting Information [Line Items]
Revenues		1,317	917	3,942	3,645
Reportable segment gross profit	[1]	682	493	2,000	1,889
Petroleum [Member]
Segment Reporting Information [Line Items]
Revenues		4,740	3,231	13,306	10,654
Reportable segment gross profit	[1]	2,706	1,859	7,455	6,068
Other [Member]
Segment Reporting Information [Line Items]
Revenues		416	522	1,241	1,337
Reportable segment gross profit	[1]	$ 237	$ 325	$ 885	$ 794
[1]	Gross profit as reviewed by the CODM, represents gross profit, adjusted to exclude depreciation and stock-based compensation.

Operating Segments (Details Tex

Operating Segments (Details Textual)	9 Months Ended
	Sep. 30, 2018Segments
Operating Segments (Textual)
Number of reportable segments	2