Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Nov. 05, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | ON TRACK INNOVATIONS LTD | |
Entity Central Index Key | 0001021604 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Ex Transition Period | false | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 41,324,377 | |
Entity File Number | 000-49877 | |
Entity Interactive Data Current | Yes | |
Entity Incorporation State Country Code | L3 |
Interim Unaudited Condensed Con
Interim Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 3,396 | $ 4,827 |
Short-term investments | 1,905 | 1,078 |
Trade receivables (net of allowance for doubtful accounts of $558 and $555 as of September 30, 2019 and December 31, 2018, respectively) | 2,469 | 4,530 |
Other receivables and prepaid expenses | 1,602 | 2,060 |
Inventories | 4,366 | 3,527 |
Total current assets | 13,738 | 16,022 |
Long-term restricted deposit for employees benefit | 473 | 451 |
Severance pay deposits | 404 | 375 |
Property, plant and equipment, net | 3,693 | 5,033 |
Intangible assets, net | 246 | 241 |
Right-of-use assets | 1,930 | |
Total Assets | 20,484 | 22,122 |
Current Liabilities | ||
Short-term bank credit and current maturities of long-term bank loans | 2,553 | 260 |
Trade payables | 4,857 | 4,712 |
Other current liabilities | 2,286 | 3,622 |
Total current liabilities | 9,696 | 8,594 |
Long-Term Liabilities | ||
Long-term loans, net of current maturities | 26 | 39 |
Long-term liabilities due to operating leases, net of current maturities | 1,204 | |
Accrued severance pay | 948 | 853 |
Deferred tax liability | 393 | 445 |
Total long-term liabilities | 2,571 | 1,337 |
Total Liabilities | 12,267 | 9,931 |
Commitments and Contingencies | ||
Shareholders' Equity | ||
Ordinary shares of NIS 0.1 par value: Authorized: 50,000,000 shares as of September 30, 2019 and December 31, 2018; issued: 42,503,076 and 42,473,076 shares as of September 30, 2019 and December 31, 2018, respectively; outstanding: 41,324,377 and 41,294,377 shares as of September 30, 2019, and December 31, 2018, respectively | 1,069 | 1,068 |
Additional paid-in capital | 225,117 | 225,022 |
Treasury shares at cost - 1,178,699 shares as of September 30, 2019 and December 31, 2018 | (2,000) | (2,000) |
Accumulated other comprehensive loss | (1,172) | (956) |
Accumulated deficit | (214,797) | (210,943) |
Total Equity | 8,217 | 12,191 |
Total Liabilities and Equity | $ 20,484 | $ 22,122 |
Interim Unaudited Condensed C_2
Interim Unaudited Condensed Consolidated Balance Sheets (Parenthetical) $ in Thousands | Sep. 30, 2019USD ($)shares | Sep. 30, 2019₪ / shares | Dec. 31, 2018USD ($)shares | Dec. 31, 2018₪ / shares |
Statement of Financial Position [Abstract] | ||||
Allowance for doubtful accounts, net | $ | $ 558 | $ 555 | ||
Ordinary shares, par value | ₪ / shares | ₪ 0.1 | ₪ 0.1 | ||
Ordinary shares, shares authorized | 50,000,000 | 50,000,000 | ||
Ordinary shares, shares issued | 42,503,076 | 42,473,076 | ||
Ordinary shares, shares outstanding | 41,324,377 | 41,294,377 | ||
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, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||||
Revenues | |||||||
Sales | $ 2,631 | $ 4,760 | [1] | $ 7,286 | $ 13,353 | [1] | |
Licensing and transaction fees | 1,234 | 1,339 | [1] | 3,708 | 3,997 | [1] | |
Total revenues | 3,865 | 6,099 | [1] | 10,994 | 17,350 | [1] | |
Cost of revenues | |||||||
Cost of sales | 2,161 | 2,870 | [1] | 5,273 | 8,351 | [1] | |
Total cost of revenues | 2,161 | 2,870 | [1] | 5,273 | 8,351 | [1] | |
Gross profit | 1,704 | 3,229 | [1] | 5,721 | 8,999 | [1] | |
Operating expenses | |||||||
Research and development | 840 | 765 | [1] | 2,528 | 2,391 | [1] | |
Selling and marketing | 1,193 | 1,591 | [1] | 3,798 | 4,700 | [1] | |
General and administrative | 1,070 | 1,099 | [1] | 3,081 | 3,001 | [1] | |
Other (gain) expenses, net | (335) | (335) | 70 | ||||
Total operating expenses | 2,768 | 3,455 | [1] | 9,072 | 10,162 | [1] | |
Operating loss from continuing operations | (1,064) | (226) | [1] | (3,351) | (1,163) | [1] | |
Financial expenses, net | (93) | (2) | [1] | (199) | (129) | [1] | |
Loss from continuing operations before taxes on income | (1,157) | (228) | [1] | (3,550) | (1,292) | [1] | |
Income tax (expenses) benefit, net | (17) | 2 | [1] | (25) | 267 | [1] | |
Net loss from continuing operations | (1,174) | (226) | [1] | (3,575) | (1,025) | [1] | |
Net (loss) income from discontinued operations | (36) | 42 | [1] | (279) | 228 | [1] | |
Net loss | $ (1,210) | $ (184) | [1] | $ (3,854) | $ (797) | [1] | |
Basic and diluted net (loss) income attributable to shareholders per ordinary share | |||||||
From continuing operations | $ (0.03) | [1],[2] | $ (0.09) | $ (0.02) | [1] | ||
From discontinued operations | [2] | [1] | [1] | ||||
Total | $ (0.03) | [1],[2] | $ (0.09) | $ (0.02) | [1] | ||
Weighted average number of ordinary shares used in computing basic and diluted net (loss) income per ordinary share | 41,324,377 | 41,294,377 | [1] | 41,306,575 | 41,260,426 | [1] | |
[1] | Reclassified to conform with the current period presentation, see Note 1C(2). | ||||||
[2] | Less than $0.01 per ordinary share. |
Interim Unaudited Condensed C_4
Interim Unaudited Condensed Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |||
Total comprehensive (loss) income: | ||||||
Net (loss) income | $ (1,210) | $ (184) | [1] | $ (3,854) | $ (797) | [1] |
Foreign currency translation adjustments | (254) | 44 | (216) | (210) | ||
Total comprehensive (loss) income | $ (1,464) | $ (140) | $ (4,070) | $ (1,007) | ||
[1] | Reclassified to conform with the current period presentation, see Note 1C(2). |
Interim Unaudited Condensed C_5
Interim Unaudited Condensed Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Share capital | Additional paid-in capital | Treasury Shares (at cost) | Accumulated other comprehensive Income (loss) | Accumulated deficit | Total | ||
Balance at Dec. 31, 2017 | $ 1,064 | $ 224,758 | $ (2,000) | $ (691) | $ (210,680) | $ 12,451 | ||
Balance, Shares at Dec. 31, 2017 | 42,353,077 | |||||||
Changes during the period ended | ||||||||
Stock-based compensation | $ 3 | 177 | 180 | |||||
Stock-based compensation, Shares | [1] | 80,000 | ||||||
Exercise of options | $ 1 | 33 | 34 | |||||
Exercise of options, Shares | 39,999 | |||||||
Foreign currency translation adjustments | (210) | (210) | ||||||
Net loss | (797) | (797) | [2] | |||||
Balance at Sep. 30, 2018 | $ 1,068 | 224,968 | (2,000) | (901) | (211,477) | 11,658 | ||
Balance, Shares at Sep. 30, 2018 | 42,473,076 | |||||||
Balance at Jun. 30, 2018 | $ 1,068 | 224,903 | (2,000) | (945) | (211,293) | 11,733 | ||
Balance, Shares at Jun. 30, 2018 | 42,473,076 | |||||||
Changes during the period ended | ||||||||
Stock-based compensation | 65 | 65 | ||||||
Stock-based compensation, Shares | ||||||||
Exercise of options | ||||||||
Exercise of options, Shares | ||||||||
Foreign currency translation adjustments | 44 | 44 | ||||||
Net loss | (184) | (184) | [2] | |||||
Balance at Sep. 30, 2018 | $ 1,068 | 224,968 | (2,000) | (901) | (211,477) | 11,658 | ||
Balance, Shares at Sep. 30, 2018 | 42,473,076 | |||||||
Balance at Dec. 31, 2018 | $ 1,068 | 225,022 | (2,000) | (956) | (210,943) | 12,191 | ||
Balance, Shares at Dec. 31, 2018 | 42,473,076 | |||||||
Changes during the period ended | ||||||||
Stock-based compensation | $ 1 | 95 | 96 | |||||
Stock-based compensation, Shares | [1] | 30,000 | ||||||
Foreign currency translation adjustments | (216) | (216) | ||||||
Net loss | (3,854) | (3,854) | ||||||
Balance at Sep. 30, 2019 | $ 1,069 | 225,117 | (2,000) | (1,172) | (214,797) | 8,217 | ||
Balance, Shares at Sep. 30, 2019 | 42,503,076 | |||||||
Balance at Jun. 30, 2019 | $ 1,069 | 225,111 | (2,000) | (918) | (213,587) | 9,675 | ||
Balance, Shares at Jun. 30, 2019 | 42,503,076 | |||||||
Changes during the period ended | ||||||||
Stock-based compensation | 6 | 6 | ||||||
Stock-based compensation, Shares | ||||||||
Foreign currency translation adjustments | (254) | (254) | ||||||
Net loss | (1,210) | (1,210) | ||||||
Balance at Sep. 30, 2019 | $ 1,069 | $ 225,117 | $ (2,000) | $ (1,172) | $ (214,797) | $ 8,217 | ||
Balance, Shares at Sep. 30, 2019 | 42,503,076 | |||||||
[1] | See Note 10D. | |||||||
[2] | Reclassified to conform with the current period presentation, see Note 1C(2). |
Interim Unaudited Condensed C_6
Interim Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | [1] | |
Cash flows from continuing operating activities | |||
Net loss from continuing operations | $ (3,575) | $ (1,025) | |
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 | 96 | 180 | |
Depreciation and amortization | 951 | 978 | |
Deferred tax, net | (25) | (360) | |
Gain on sale of property and equipment | (328) | (25) | |
Accrued interest and linkage differences, net | (48) | ||
Changes in operating assets and liabilities: | |||
Accrued severance pay, net | 66 | (19) | |
Decrease in trade receivables, net | 1,576 | 1,377 | |
Decrease (increase) in other receivables and prepaid expenses | 395 | (255) | |
Increase in inventories | (879) | (381) | |
Increase (decrease) in trade payables | 506 | (263) | |
Decrease in other current liabilities | (585) | (151) | |
Net cash (used in) provided by continuing operating activities | (1,850) | 56 | |
Cash flows from continuing investing activities | |||
Purchase of property and equipment | (433) | (467) | |
Proceeds from sale of property and equipment | 1,102 | 52 | |
Change in short-term investments, net | (978) | 1,195 | |
Investment in capitalized certification costs | (156) | (92) | |
Proceeds from restricted deposit for employees benefit | 10 | 8 | |
Net cash (used in) provided by continuing investing activities | (455) | 696 | |
Cash flows from continuing financing activities | |||
Increase (decrease) in short-term bank credit, net | 2,636 | (3,449) | |
Repayment of long-term bank loans | (261) | (979) | |
Proceeds from exercise of options and warrants | 34 | ||
Net cash provided by (used in) continuing financing activities | 2,375 | (4,394) | |
Cash flows from discontinued operations | |||
Net cash (used in) provided by discontinued operating activities | (1,397) | 836 | |
Total net cash (used in) provided by discontinued operations | (1,397) | 836 | |
Effect of exchange rate changes on cash and cash equivalents | (277) | (187) | |
Decrease in cash, cash equivalents and restricted cash | (1,604) | (2,993) | |
Cash, cash equivalents and restricted cash - beginning of the period | 5,105 | 7,799 | |
Cash, cash equivalents and restricted cash - end of the period | 3,501 | 4,806 | |
Cash paid during the period for: | |||
Interest paid | 44 | 112 | |
Income taxes paid | $ 187 | $ 43 | |
[1] | Reclassified to conform with the current period presentation, see Note 1C(2). |
Organization and Basis of Prese
Organization and Basis of Presentation | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [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 ordinary shares are listed for trading on the OTCQX market (formerly listed on the Nasdaq Capital Market until October 30, 2019). At September 30, 2019, the Company operates in two operating segments: (a) Retail and Mass Transit Ticketing, and (b) Petroleum. See Note 11. During 2018, the Company sold its medical smart cards operation – see Note 1C(2). 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, 2018. In the opinion of management, all adjustments considered necessary for a fair statement, consisting of normal recurring adjustments, have been included. Operating results for the nine month period ended September 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019. 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 procedure. An arbitration decision was issued on December 24, 2018 in the Company's favor and denied SuperCom's claims. The Arbitrator ordered SuperCom to disclose the financial information regarding the earn-out payments that the Company is entitled to receive, and to pay the Company accordingly, or otherwise pay the Company the maximum earn-out amount, which equals $1,500 minus the earn-out amounts that were already paid by SuperCom to the Company. As of the date hereof, the said arbitration verdict has been validated as a court verdict, and the Company is currently taking actions to enforce it. 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, 2019 and 2018. 2. In December 2018, the Company completed the sale of its medical smart cards operation ("Medismart") (formerly part of the Company's "Other segment") to Smart Applications International Limited ("Smart") for a total price of $2,750. The Company has determined that the sale of the Medismart business qualifies as a discontinued operation. 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 (see also Note 8). All prior periods' information has been reclassified to conform with the current period's presentation. D. Events in the reporting period 1. On May 24, 2019, ASEC S.A. (Spolka Akcyjna), the Polish subsidiary of the Company (hereinafter – "ASEC"), entered into a loan agreement with PKO Bank Polski, a Polish bank (hereinafter – "the Lender"). The agreement provides that the Lender will grant an overdraft facility to ASEC in the amount of $2,000. On May 24, 2019 the Lender loaned to ASEC the full amount of the loan, secured by certain assets of ASEC (hereinafter – "the Secured Loan"). The Secured Loan matures on May 23, 2020. The loan will be payable in full on maturity (with option of early repayment by ASEC) and the interest will be paid on a monthly basis. The Secured Loan bears interest at an annual interest rate based on 1-month LIBOR plus a margin of 1.8%, or currently approximately 3.8% in total. The agreement includes customary events of default, including, among others, failures to repay any amounts due to the Lender, breaches or defaults under the terms of the agreement, etc. If an event of default occurs, the Lender may reduce the amount of the Secured Loan, demand an additional security or terminate the agreement. 2. In January 2019, the Company signed agreements pursuant to which the Company will lease offices in Yokne'am and in Rosh Pina, Israel (in lieu of the current leased headquarters building in Rosh Pina). The operating lease periods of those buildings in Yokne'am and in Rosh Pina are five years and four years, respectively (excluding the extension-periods, as mentioned in the agreements), and will commence in the fourth quarter of 2019 and commenced in the third quarter of 2019, respectively. The total annual rent expenses of both offices, including management fees and excluding construction costs-reimbursement, are expected to be approximately NIS 650 ($187). The construction costs-reimbursement are expected to be approximately NIS 3,450 ($990) that will be paid during the lease period. 3. In March 2019, OTI Petrosmart (Pty), Ltd., the South African subsidiary (hereinafter – "Petrosmart"), entered into an agreement pursuant to which Petrosmart agreed to sell its head office in Cape Town, South Africa, to a third party for consideration of Rand 15,500 (approximately $1,100), and Petrosmart agreed to lease back this building for its current operations. The sale has been completed and the operating lease commenced during the third quarter of 2019. The leaseback period is three years. The annual rent for the first year is approximately Rand 1,800 (approximately $119) and will be increased by 8.5% each year. Petrosmart has the right to extend the lease by two years. The Company recognized a profit in the amount of approximately $328 during the third quarter in 2019 due to the sale of the building. This profit is presented within 'other (gain) expenses, net' in the statements of operations. The Company does not record right-of-use asset and operating lease liability regarding the building in Yokne'am (Israel), as mentioned above, in its consolidated financial statements as of September 30, 2019, due to the fact that the commencement date of the lease period is subsequent to the balance sheet date – see also Note 2A. The Company expects an increase of approximately $1,600 in the right-of-use assets and in the lease liabilities on the first-time-recognition in this lease. |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
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, 2018. A. Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842), which supersedes Accounting Standards Codification ("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 until December 31, 2018, only financing-type lease liabilities (capital leases) were recognized on the balance sheet. Right-of-use assets represent company's right to use an underlying asset for the lease term and lease liabilities represent company's obligation to make lease payments arising from the lease. Operating and finance lease right-of-use assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. The Company uses its incremental borrowing rate based on the information available at the commencement date to determine the present value of the lease payments. In addition, the definition of a lease in the ASU 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. The Company has adopted ASU 2016-02 commencing from January 1, 2019, under the effective date method . The Company did not have a cumulative-effect adjustment to retained earnings as a result of the adoption of the new standard. The adoption of this standard does not have a material impact on the results of operations and cash flows. See Note 5 for the impact on the balance sheet as of September 30, 2019, and additional disclosures, as required by the new standard. B. Recent accounting pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326). The main objective of this ASU is to 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 ASU 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. |
Other Receivables and Prepaid E
Other Receivables and Prepaid Expenses | 9 Months Ended |
Sep. 30, 2019 | |
Other Receivables and Prepaid Expenses [Abstract] | |
Other Receivables and Prepaid Expenses | Note 3 – Other Receivables and Prepaid Expenses September 30, December 31, 2019 2018 Government institutions $ 234 $ 387 Prepaid expenses 165 226 Supplier advances 502 932 Receivables under contractual obligations to be transferred to others (*) 427 349 Other receivables 274 166 $ 1,602 $ 2,060 (*) 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, 2019 | |
Other Liabilities, Current [Abstract] | |
Other Current Liabilities | Note 4 – Other Current Liabilities September 30, December 31, 2019 2018 Employees and related expenses $ 637 $ 1,042 Accrued expenses 682 921 Customer advances 110 141 Short-term liabilities due to operating leases and current maturities ** 732 - Other current liabilities 125 *1,518 $ 2,286 $ 3,622 * See Note 6A(1). ** See Note 2A. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | Note 5 – Leases The Company leases a limited number of assets, mainly offices and cars for use in its operations. The Company adopted the new accounting standard ASC 842, "Leases", and all the related amendments on January 1, 2019 and used the effective date as Company's date of initial application. As of September 30, 2019, right-of-use assets due to operating leases are $1,930 ) The Company includes renewal options that it is reasonably certain to exercise in the measurement of the lease liabilities. The remaining operating lease periods of the leases range from less than one year to six years as of September 30, 2019. The weighted average remaining lease term is 2.3 years as of September 30, 2019. The following is a schedule of the maturities of operating lease liabilities for the next five years as of September 30, 2019, and thereafter, as were taken into account in the calculation of the operating lease liabilities as of September 30, 2019: Remainder of 2019 $ 233 2020 661 2021 511 2022 362 2023 184 Thereafter 140 Total leases payments 2,091 Less - discount 155 Operating lease liabilities $ 1,936 As of September 30, 2019, the weighted average discount rate of the operating leases is approximately 5.3%. Operating lease costs and cash paid for amounts included in the measurement of the lease liabilities were approximately $236 and $602 during the three months and the nine months ended September 30, 2019, respectively. Operating lease costs include fixed payments and variable payments that depend on an index or rate. There are no other significant variable lease payments. The Company does not have any material leases, individually or in the aggregate, classified as a finance leasing arrangement. The following is a schedule of the maturities of operating lease liabilities for the next five years as of December 31, 2018, and thereafter, based on agreements that were signed as of December 31, 2018: 2019 $ 523 2020 350 2021 277 2022 163 2023 140 Thereafter 156 Total leases payments $ 1,609 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 6 – Commitments and Contingencies A. Legal claims 1. In June 2013, prior to the Company's divestiture of its SmartID division, Merwell Inc. ("Merwell") filed a claim against the Company before an agreed-upon arbitrator alleging breach of contract in connection with certain commissions claimed to be owed to Merwell with respect to the division's activities in Tanzania. These activities, along with all other activities of the SmartID division, were later assigned to and assumed by SuperCom in its purchase of the division. SuperCom undertook to indemnify the Company and hold it harmless against any liabilities the Company may incur in connection with Merwell's consulting agreement and the arbitration. An arbitration decision was issued on February 21, 2016, awarding Merwell approximately $855 for outstanding commissions, plus expenses and legal fees and ordering the Company to provide further financial details that might result in additional payments to Merwell. The arbitration decision had been appealed and the appeal was denied on June 17, 2018. In order to collect the award, Merwell filed a motion against the Company and the Nazareth District Court issued a judgment requiring the Company to pay Merwell an amount of approximately NIS 5,080 (approximately $1,370) that was paid by the Company on January 8, 2019. As mentioned above, based on the agreement with SuperCom from April 2016 (which was granted an effect of a court judgment), SuperCom is liable for all the costs and liabilities arising out of this claim. On February 17, 2019, the Company initiated an arbitration process (the "Arbitration") to collect from SuperCom the amount paid to Merwell which SuperCom failed to pay, and to assure that SuperCom will pay any additional amounts, if required in the future. On March 26, 2019, SuperCom filed a petition to the Tel-Aviv District Court, asking to order that the dispute will be conducted in Court and not in arbitration. On October 29, 2019, a hearing was conducted in court regarding SuperCom's petition, and at the end of the hearing, following the court's recommendation, SuperCom agreed to withdraw its petition. As a result, the court gave a verdict ordering that the Arbitration will continue. On the same day, the Company approached the arbitrator, asking to renew the Arbitration, and on October 30, 2019 the arbitrator scheduled a preliminary hearing. The consolidated financial statements as of December 31, 2018, include a provision for the full amount paid. Despite the fact that, based on the assessment of the Company's external legal counsel, the likelihood to succeed in the arbitration process (or other legal procedure in that matter) is high, the Company did not record an indemnification asset as of September 30, 2019 and December 31, 2018 , 2. On June 12, 2019, Merwell submitted a complementary claim against the Company in arbitration, with respect to the additional financial details that Merwell claims that the Company was ordered to provide according to the arbitration verdict from February 21, 2016, and additional payments that Merwell claims that the Company is obligated to pay Merwell. The said financial details refer to the quantity of smart driving licenses that Merwell claims were issued in the later period of a project in Tanzania in which Merwell claims to have provided services to the Company. Merwell claims that despite the Company's failure to provide the details, Merwell obtained the details independently from other sources, and they indicate that the Company is obligated to pay Merwell an additional amount of $1,619. The Company rejects the details that were presented by Merwell and their validity, and also raised preliminary claims that this matter cannot be determined in arbitration, but only in court, since the relevant data is held by SuperCom, who is not a party to the arbitration agreement with Merwell, but issued the licenses in the relevant period and therefore is a necessary party to the dispute. The Company filed an application to the arbitrator, and on August 8, 2019, the arbitrator determined that the Company's procedural claims should be heard and determined in court. Following that decision, on September 8, 2019, the Company filed a petition to the Tel-Aviv District Court, asking it to order that Merwell's claims in the complementary procedure will be heard in court and not in arbitration. On October 22, 2019, Merwell submitted its response to the court. As of the date of this report, a hearing in the petition has not yet scheduled. Based on the assessment of the Company's external legal counsel, given the preliminary stage of the procedure, it is difficult, at this point, to estimate the chances of Merwell's claims for a complementary arbitration verdict. 3. In October 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 (approximately $1,708) 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 ($57) 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 ($573) plus interest and expenses. The Company will submit its answer to the appeal by November 7, 2019, and the appeal hearing is scheduled for December 5, 2019. 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. 4. In July, 2019, the Company received a request (the "Request"), to allow a petitioner to submit a class action, which concerns the petitioner's claims that, inter alia, through the EasyPark card, drivers are permitted to exceed the quota of permitted hours in accordance with the instructions of various local authorities in Israel. The Request was submitted against a company (the "Buyer's Company") incorporated by the buyer of the assets (including the parking activity) of the Israeli subsidiaries of the Company (the "Company's Subsidiaries") and against two other companies that operate technological means for payment for public parking spaces scattered throughout the cities. Since the majority of potential claims against the Company's Subsidiaries relate to the period following the sale of the Company's Subsidiaries' assets, including the parking activity, it appears that the Company's exposure through this channel is limited. Furthermore, even if payment will be required, the buyer would be liable for the majority of such payment. Therefore the Company will not participate in such procedure at this stage. Based on the assessment of the Company's external legal counsel, the exposure of the Company cannot be assessed at this point. B. Guarantees As of September 30, 2019, the Company has granted performance guarantees and guarantees to secure customer advances in the sum of $387. The expiration dates of the guarantees range from April 2020 to September 2021. |
Revenues
Revenues | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Note 7 – 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, 2019 : Nine months ended September 30, 2019 Retail and Mass Transit Ticketing Petroleum Total Cashless payment products (A) $ 4,437 $ - $ 4,437 Complete cashless payment solutions (B): Sales of products (B1) 646 1,439 2,085 Licensing fees, transaction fees and services (B2) 3,522 950 4,472 4,168 2,389 6,557 Total revenues $ 8,605 $ 2,389 $ 10,994 Nine months ended September 30, 2018* Retail and Mass Transit Ticketing Petroleum Total Cashless payment products (A) $ 6,710 $ - $ 6,710 Complete cashless payment solutions (B): Sales of products (B1) 2,880 2,882 5,762 Licensing fees, transaction fees and services (B2) 3,817 1,061 4,878 6,697 3,943 10,640 Total revenues $ 13,407 $ 3,943 $ 17,350 * Reclassified to conform with the current period presentation, see Note 1C(2). Three months ended September 30, 2019 Retail and Mass Transit Ticketing Petroleum Total Cashless payment products (A) $ 1,697 $ - $ 1,697 Complete cashless payment solutions (B): Sales of products (B1) 49 603 652 Licensing fees, transaction fees and services (B2) 1,189 327 1,516 1,238 930 2,168 Total revenues $ 2,935 $ 930 $ 3,865 Three months ended September 30, 2018* Retail and Mass Transit Ticketing Petroleum Total Cashless payment products (A) $ 2,013 $ - $ 2,013 Complete cashless payment solutions (B): Sales of products (B1) 1,520 935 2,455 Licensing fees, transaction fees and services (B2) 1,248 383 1,631 2,768 1,318 4,086 Total revenues $ 4,781 $ 1,318 $ 6,099 * Reclassified to conform with the current period presentation, see Note 1C(2). Performance obligations Below is a listing of performance obligations for the Company's 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 occur when the products are delivered. Below is a listing of performance obligations for the Company's main revenue streams (cont'd): 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 occur 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. 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, 2019 2018 Trade receivables, net of allowance for doubtful accounts $ 2,469 $ 4,530 Customer advances $ 110 $ 141 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, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued operations | Note 8 – Discontinued operations As described in Note 1C, the Company divested its interest in the SmartID division and its Medismart activity, and presented these activities as discontinued operations. Set forth below are the results of the discontinued operations: Three months ended Nine months ended 2019 *2018 2019 *2018 Revenues $ - $ 374 $ - $ 1,139 Expenses (36 ) (332 ) (279 ) (924 ) Other income, net - - - 13 Net (loss) profit from discontinued operations (36 ) 42 (279 ) 228 * Reclassified to conform with the current period presentation, see Note 1C(2). |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Note 9 – Fair Value of Financial Instruments The Company's financial instruments consist mainly of cash and cash equivalents, short-term investments bearing interest, 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, 2019, the Company held approximately $1,905 of short-term bank deposits (as of December 31, 2018, $1,078). As of September 30, 2019 and December 31, 2018, short-term deposits in the amount of $105 and $278, 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, 2019 | |
Equity [Abstract] | |
Equity | Note 10 – Equity A. Stock option plans During the nine-month periods ended September 30, 2019 and September 30, 2018, 230,000 and 100,000 options were granted, respectively. 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, 2019 and September 30, 2018, are $0.55 and $1.33, 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, 2019 and September 30, 2018 was estimated on the date of grant, using the Black-Scholes model and the following assumptions: Nine months ended 2019 2018 Expected dividend yield 0 % 0 % Expected volatility 79 % 80 % Risk-free interest rate 2.07 % 1.92 % Expected life - in years 2.44 2.33 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. Estimated expected lives are based on historical grants data. The Company's options activity (including options to non-employees) during the nine months ended September 30, 2019 and options outstanding and options exercisable as of December 31, 2018 and September 30, 2019, are summarized in the following table: Number of options outstanding Weighted average exercise price per share Outstanding – December 31, 2018 1,461,000 $ 1.24 Options granted 230,000 0.55 Options expired or forfeited (468,669 ) 1.68 Outstanding – September 30, 2019 1,222,331 0.94 Exercisable as of: December 31, 2018 855,642 $ 1.32 September 30, 2019 760,978 $ 0.96 The weighted average fair value of options granted during the nine months ended September 30, 2019 and during the nine months ended September 30, 2018 is $0.2 and $0.65, respectively, per option. The aggregate intrinsic value of outstanding options as of September 30, 2019 and December 31, 2018 is approximately zero and $6, respectively. The aggregate intrinsic value of exercisable options as of September 30, 2019 and December 31, 2018 is approximately zero and $4, respectively. The following table summarizes information about options outstanding and exercisable (including options to non-employees) as of September 30, 2019: Options outstanding Options exercisable Number Weighted Number Weighted Outstanding average Weighted Outstanding average Weighted as of remaining Average As of remaining Average Range of September 30, contractual Exercise September 30, contractual Exercise exercise price ($) 2019 life (years) Price 2019 life (years) Price 0.44- 0.90 643,000 1.78 $ 0.69 420,000 0.31 $ 0.74 1.07-1.68 579,331 2.2 $ 1.21 340,978 1.75 $ 1.24 1,222,331 1.98 760,978 0.96 As of September 30, 2019, there was approximately $114 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 1.05 years. During the three months ended September 30, 2019 and September 30, 2018, the Company recorded stock-based compensation expenses in the amount of $6 and $65, respectively, in accordance with ASC 718, "Compensation-Stock Compensation." During the nine months ended September 30, 2019 and September 30, 2018, the Company recorded stock-based compensation expenses in the amount of $96 and $180, respectively, in accordance with ASC 718, "Compensation-Stock Compensation." B. Warrants 1. During the nine months ended September 30, 2019, no warrants expired or were exercised into ordinary shares. 2. As of September 30, 2019, 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 November 2019. C. Stock options and warrants in the amounts of 1,262,331 and 1,398,666 outstanding as of the nine months ended September 30, 2019 and 2018, 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. D. Shares to non-employees During the nine months ended September 30, 2019 and September 30, 2018, the Company issued 30,000 and 80,000 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, 2019 and September 30, 2018. |
Operating Segments
Operating Segments | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Operating segments | Note 11 – 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. 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, 2019 Petroleum Retail and Mass Transit Ticketing Consolidated Revenues $ 929 $ 2,936 $ 3,865 Reportable segment gross profit * 310 1,585 1,895 Reconciliation of reportable segment gross profit to gross profit for the period Depreciation (190 ) Stock-based compensation (1 ) Gross profit for the period in the consolidated financial statement $ 1,704 Three months ended September 30, 2018 Petroleum Retail and Mass Transit Ticketing Consolidated Revenues $ 1,317 $ 4,782 $ 6,099 Reportable segment gross profit * 682 2,750 3,432 Reconciliation of reportable segment gross profit to gross profit for the period Depreciation (202 ) Stock-based compensation (1 ) Gross profit for the period in the consolidated financial statement $ 3,229 Nine months ended September 30, 2019 Petroleum Retail and Consolidated Revenues $ 2,388 $ 8,606 $ 10,994 Reportable segment gross profit * 1,106 5,206 6,312 Reconciliation of reportable segment gross profit to profit for the period Depreciation (588 ) Stock-based compensation (3 ) Gross profit for the period in the consolidated financial statement $ 5,721 Nine months ended September 30, 2018 Petroleum Retail and Consolidated Revenues $ 3,942 $ 13,408 $ 17,350 Reportable segment gross profit * 2,000 7,628 9,628 Reconciliation of reportable segment gross profit to profit for the period Depreciation (626 ) Stock-based compensation (3 ) Gross profit for the period in the consolidated financial statement $ 8,999 * Gross profit as reviewed by the CODM, represents gross profit, adjusted to exclude depreciation and stock-based compensation. ** Reclassified to conform with the current period presentation, see Note 1C(2). |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Recently Adopted Accounting Pronouncements | A. Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842), which supersedes Accounting Standards Codification ("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 until December 31, 2018, only financing-type lease liabilities (capital leases) were recognized on the balance sheet. Right-of-use assets represent company's right to use an underlying asset for the lease term and lease liabilities represent company's obligation to make lease payments arising from the lease. Operating and finance lease right-of-use assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. The Company uses its incremental borrowing rate based on the information available at the commencement date to determine the present value of the lease payments. In addition, the definition of a lease in the ASU 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. The Company has adopted ASU 201 6 2 . The Company did not have a cumulative-effect adjustment to retained earnings as a result of the adoption of the new standard. The adoption of this standard does not have a material impact on the results of operations and cash flows. See Note 5 for the impact on the balance sheet as of September 30, 2019, and additional disclosures, as required by the new standard. |
Recent Accounting Pronouncements | B. Recent accounting pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326). The main objective of this ASU is to 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 ASU 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. |
Other Receivables and Prepaid_2
Other Receivables and Prepaid Expenses (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Other Receivables and Prepaid Expenses [Abstract] | |
Schedule of other receivables and prepaid expenses | September 30, December 31, 2019 2018 Government institutions $ 234 $ 387 Prepaid expenses 165 226 Supplier advances 502 932 Receivables under contractual obligations to be transferred to others (*) 427 349 Other receivables 274 166 $ 1,602 $ 2,060 (*) 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, 2019 | |
Other Liabilities, Current [Abstract] | |
Schedule of other current liabilities | September 30, December 31, 2019 2018 Employees and related expenses $ 637 $ 1,042 Accrued expenses 682 921 Customer advances 110 141 Short-term liabilities due to operating leases and current maturities ** 732 - Other current liabilities 125 *1,518 $ 2,286 $ 3,622 * See Note 6A(1). ** See Note 2A. |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Schedule of the maturities of operating lease liabilities | Remainder of 2019 $ 233 2020 661 2021 511 2022 362 2023 184 Thereafter 140 Total leases payments 2,091 Less - discount 155 Operating lease liabilities $ 1,936 2019 $ 523 2020 350 2021 277 2022 163 2023 140 Thereafter 156 Total leases payments $ 1,609 |
Revenues (Tables)
Revenues (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of disaggregation of revenue | Nine months ended September 30, 2019 Retail and Mass Transit Ticketing Petroleum Total Cashless payment products (A) $ 4,437 $ - $ 4,437 Complete cashless payment solutions (B): Sales of products (B1) 646 1,439 2,085 Licensing fees, transaction fees and services (B2) 3,522 950 4,472 4,168 2,389 6,557 Total revenues $ 8,605 $ 2,389 $ 10,994 Nine months ended September 30, 2018* Retail and Mass Transit Ticketing Petroleum Total Cashless payment products (A) $ 6,710 $ - $ 6,710 Complete cashless payment solutions (B): Sales of products (B1) 2,880 2,882 5,762 Licensing fees, transaction fees and services (B2) 3,817 1,061 4,878 6,697 3,943 10,640 Total revenues $ 13,407 $ 3,943 $ 17,350 * Reclassified to conform with the current period presentation, see Note 1C(2). Three months ended September 30, 2019 Retail and Mass Transit Ticketing Petroleum Total Cashless payment products (A) $ 1,697 $ - $ 1,697 Complete cashless payment solutions (B): Sales of products (B1) 49 603 652 Licensing fees, transaction fees and services (B2) 1,189 327 1,516 1,238 930 2,168 Total revenues $ 2,935 $ 930 $ 3,865 Three months ended September 30, 2018* Retail and Mass Transit Ticketing Petroleum Total Cashless payment products (A) $ 2,013 $ - $ 2,013 Complete cashless payment solutions (B): Sales of products (B1) 1,520 935 2,455 Licensing fees, transaction fees and services (B2) 1,248 383 1,631 2,768 1,318 4,086 Total revenues $ 4,781 $ 1,318 $ 6,099 * Reclassified to conform with the current period presentation, see Note 1C(2). |
Schedule of contract balances | September 30, December 31, 2019 2018 Trade receivables, net of allowance for doubtful accounts $ 2,469 $ 4,530 Customer advances $ 110 $ 141 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of results of the discontinued operations | Three months ended Nine months ended 2019 *2018 2019 *2018 Revenues $ - $ 374 $ - $ 1,139 Expenses (36 ) (332 ) (279 ) (924 ) Other income, net - - - 13 Net (loss) profit from discontinued operations (36 ) 42 (279 ) 228 * Reclassified to conform with the current period presentation, see Note 1C(2). |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Schedule of Black-Scholes model and assumptions | Nine months ended 2019 2018 Expected dividend yield 0 % 0 % Expected volatility 79 % 80 % Risk-free interest rate 2.07 % 1.92 % Expected life - in years 2.44 2.33 |
Schedule of stock options activity | Number of options outstanding Weighted average exercise price per share Outstanding – December 31, 2018 1,461,000 $ 1.24 Options granted 230,000 0.55 Options expired or forfeited (468,669 ) 1.68 Outstanding – September 30, 2019 1,222,331 0.94 Exercisable as of: December 31, 2018 855,642 $ 1.32 September 30, 2019 760,978 $ 0.96 |
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 ($) 2019 life (years) Price 2019 life (years) Price 0.44- 0.90 643,000 1.78 $ 0.69 420,000 0.31 $ 0.74 1.07-1.68 579,331 2.2 $ 1.21 340,978 1.75 $ 1.24 1,222,331 1.98 760,978 0.96 |
Operating Segments (Tables)
Operating Segments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of information regarding results of each reportable segment | Three months ended September 30, 2019 Petroleum Retail and Mass Transit Ticketing Consolidated Revenues $ 929 $ 2,936 $ 3,865 Reportable segment gross profit * 310 1,585 1,895 Reconciliation of reportable segment gross profit to gross profit for the period Depreciation (190 ) Stock-based compensation (1 ) Gross profit for the period in the consolidated financial statement $ 1,704 Three months ended September 30, 2018 Petroleum Retail and Mass Transit Ticketing Consolidated Revenues $ 1,317 $ 4,782 $ 6,099 Reportable segment gross profit * 682 2,750 3,432 Reconciliation of reportable segment gross profit to gross profit for the period Depreciation (202 ) Stock-based compensation (1 ) Gross profit for the period in the consolidated financial statement $ 3,229 Nine months ended September 30, 2019 Petroleum Retail and Consolidated Revenues $ 2,388 $ 8,606 $ 10,994 Reportable segment gross profit * 1,106 5,206 6,312 Reconciliation of reportable segment gross profit to profit for the period Depreciation (588 ) Stock-based compensation (3 ) Gross profit for the period in the consolidated financial statement $ 5,721 Nine months ended September 30, 2018 Petroleum Retail and Consolidated Revenues $ 3,942 $ 13,408 $ 17,350 Reportable segment gross profit * 2,000 7,628 9,628 Reconciliation of reportable segment gross profit to profit for the period Depreciation (626 ) Stock-based compensation (3 ) Gross profit for the period in the consolidated financial statement $ 8,999 * Gross profit as reviewed by the CODM, represents gross profit, adjusted to exclude depreciation and stock-based compensation. ** Reclassified to conform with the current period presentation, see Note 1C(2). |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Details) ₪ in Thousands, $ in Thousands | Jun. 12, 2019 | May 24, 2019 | Mar. 31, 2019 | Jan. 31, 2019USD ($) | Jan. 31, 2019ILS (₪) | Dec. 31, 2018USD ($) | Apr. 20, 2016 | Dec. 31, 2013USD ($) | Mar. 31, 2019 | Sep. 30, 2019USD ($)Segments |
Organization and Basis of Presentation (Textual) | ||||||||||
Total purchase price in cash | $ 2,750 | $ 10,000 | ||||||||
Additional purchase price | $ 12,500 | |||||||||
Settlement agreement resolving, description | The said financial details refer to the quantity of smart driving licenses that Merwell claims were issued in the later period of a project in Tanzania in which Merwell claims to have provided services to the Company. Merwell claims that despite the Company's failure to provide the details, Merwell obtained the details independently from other sources, and they indicate that the Company is obligated to pay Merwell an additional amount of $1,619. The Company rejects the details that were presented by Merwell and their validity, and also raised preliminary claims that this matter cannot be determined in arbitration. | 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 | |||||||||
Annual rent expenses | $ 187 | |||||||||
Construction costs-reimbursement | $ 990 | |||||||||
Third party, Description | Third party for consideration of Rand 15,500 (approximately $1,100), and Petrosmart agreed to lease back this building for its current operations. The sale has been completed and the operating lease commenced during the third quarter of 2019. | |||||||||
Sale leaseback, Description | The leaseback period is three years. The annual rent for the first year is approximately Rand 1,800 (approximately $119) and will be increased by 8.5% each year. Petrosmart has the right to extend the lease by two years. The Company recognized a profit in the amount of approximately $327 during the third quarter in 2019 due to the sale of the building. This profit is presented within 'other (gain) expenses, net' in the statements of operations | |||||||||
Buildings book value | $ 328 | |||||||||
Operating lease term description | The operating lease periods of those buildings in Yokne’am and in Rosh Pina are five years and four years, respectively (excluding the extension-periods, as mentioned in the agreements), and will commence in the fourth quarter of 2019 and commenced in the third quarter of 2019, respectively. | The operating lease periods of those buildings in Yokne’am and in Rosh Pina are five years and four years, respectively (excluding the extension-periods, as mentioned in the agreements), and will commence in the fourth quarter of 2019 and commenced in the third quarter of 2019, respectively. | The remaining operating lease periods of the leases range from less than one year to six years | |||||||
Right-of-use asset | $ 1,600 | |||||||||
Description of loan agreement | ASEC S.A. (Spolka Akcyjna), the Polish subsidiary of the Company (hereinafter – “ASEC”), entered into a loan agreement with PKO Bank Polski, a Polish bank (hereinafter – “the Lender”). The agreement provides that the Lender will grant an overdraft facility to ASEC in the amount of $2,000. On May 24, 2019 the Lender loaned to ASEC the full amount of the loan, secured by certain assets of ASEC (hereinafter – “the Secured Loan”). The Secured Loan matures on May 23, 2020. The loan will be payable in full on maturity (with option of early repayment by ASEC) and the interest will be paid on a monthly basis. The Secured Loan bears interest at an annual interest rate based on 1-month LIBOR plus a margin of 1.8%, or currently approximately 3.8% in total. | |||||||||
NIS [Member] | ||||||||||
Organization and Basis of Presentation (Textual) | ||||||||||
Annual rent expenses | ₪ | ₪ 650 | |||||||||
Construction costs-reimbursement | ₪ | ₪ 3,450 |
Other Receivables and Prepaid_3
Other Receivables and Prepaid Expenses (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | |
Other Receivables and Prepaid Expenses [Abstract] | |||
Government institutions | $ 234 | $ 387 | |
Prepaid expenses | 165 | 226 | |
Supplier advances | 502 | 932 | |
Receivables under contractual obligations to be transferred to others | [1] | 427 | 349 |
Other receivables | 274 | 166 | |
Total other receivables and prepaid expenses | $ 1,602 | $ 2,060 | |
[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, 2019 | Dec. 31, 2018 | ||
Other Liabilities, Current [Abstract] | ||||
Employees and related expenses | $ 637 | $ 1,042 | ||
Accrued expenses | 682 | 921 | ||
Customer advances | 110 | 141 | ||
Short-term liabilities due to operating leases and current maturities | [1] | 732 | ||
Other current liabilities | 125 | 1,518 | [2] | |
Total other current liabilities | $ 2,286 | $ 3,622 | ||
[1] | See Note 2A. | |||
[2] | See Note 6A(1). |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Leases [Abstract] | ||
Remainder of 2019 | $ 233 | $ 523 |
2020 | 661 | 350 |
2021 | 511 | 277 |
2022 | 362 | 163 |
2023 | 184 | 140 |
Thereafter | 140 | 156 |
Total leases payments | 2,091 | $ 1,609 |
Less - discount | 155 | |
Operating lease liabilities | $ 1,936 |
Leases (Details Textual)
Leases (Details Textual) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Jan. 31, 2019 | Sep. 30, 2019 | Sep. 30, 2019 | Jan. 02, 2019 | Dec. 31, 2018 | ||
Leases [Abstract] | ||||||
Right-of-use assets due to operating leases | $ 1,930 | $ 1,930 | $ 1,572 | |||
Right-of-use liabilities due to operating leases | $ 1,936 | $ 1,936 | $ 1,572 | |||
Weighted average discount rate | 5.30% | 5.30% | ||||
Operating lease, cost | $ 236 | $ 602 | ||||
Leases period | The operating lease periods of those buildings in Yokne’am and in Rosh Pina are five years and four years, respectively (excluding the extension-periods, as mentioned in the agreements), and will commence in the fourth quarter of 2019 and commenced in the third quarter of 2019, respectively. | The remaining operating lease periods of the leases range from less than one year to six years | ||||
Operating lease, term | 2 years 11 days | 2 years 11 days | ||||
Long-term liabilities due to operating leases, net of current maturities | $ 1,204 | $ 1,204 | ||||
Short-term liabilities due to operating leases and current maturities | [1] | $ 732 | $ 732 | |||
[1] | See Note 2A. |
Commitments and Contingencies (
Commitments and Contingencies (Details) € in Thousands, $ in Thousands | Jun. 12, 2019 | Jan. 08, 2019USD ($) | Oct. 25, 2017USD ($) | Oct. 25, 2017EUR (€) | Apr. 20, 2016 | Feb. 21, 2016USD ($) | Oct. 31, 2013USD ($) | Oct. 31, 2013EUR (€) | Sep. 30, 2019USD ($) |
Commitments and Contingencies (Textual) | |||||||||
Guarantees to secure customer advances | $ 387 | ||||||||
Guarantees expiration dates description | The expiration dates of the guarantees range from April 2020 to September 2021. | ||||||||
Payment of interest plus and cost | $ 57 | ||||||||
Other fees and penalties | $ 6 | ||||||||
Legal claims | The said financial details refer to the quantity of smart driving licenses that Merwell claims were issued in the later period of a project in Tanzania in which Merwell claims to have provided services to the Company. Merwell claims that despite the Company's failure to provide the details, Merwell obtained the details independently from other sources, and they indicate that the Company is obligated to pay Merwell an additional amount of $1,619. The Company rejects the details that were presented by Merwell and their validity, and also raised preliminary claims that this matter cannot be determined in arbitration. | 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. | |||||||
EUR [Member] | |||||||||
Commitments and Contingencies (Textual) | |||||||||
Payment of interest plus and cost | € | € 50 | ||||||||
Other fees and penalties | € | € 5 | ||||||||
Merwell Inc. [Member] | |||||||||
Commitments and Contingencies (Textual) | |||||||||
Outstanding commissions arbitration | $ 855 | ||||||||
Payment of interest plus and cost | $ 1,370 | ||||||||
Merwell Inc. [Member] | NIS [Member] | |||||||||
Commitments and Contingencies (Textual) | |||||||||
Payment of interest plus and cost | $ 5,080 | ||||||||
Parx France [Member] | |||||||||
Commitments and Contingencies (Textual) | |||||||||
Financial claim field | $ 573 | ||||||||
Legal claims, description | 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 (approximately $1,708) 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 ($57) 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 ($573) plus interest and expenses. | 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 (approximately $1,708) 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 ($57) 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 ($573) plus interest and expenses. | |||||||
Parx France [Member] | EUR [Member] | |||||||||
Commitments and Contingencies (Textual) | |||||||||
Financial claim field | € | € 503 | ||||||||
French Company [Member] | |||||||||
Commitments and Contingencies (Textual) | |||||||||
Financial claim field | $ 1,708 | ||||||||
French Company [Member] | EUR [Member] | |||||||||
Commitments and Contingencies (Textual) | |||||||||
Financial claim field | € | € 1,500 |
Revenues (Details)
Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2019 | Sep. 30, 2018 | [2] | Sep. 30, 2019 | Sep. 30, 2018 | [2] | ||
Disaggregation of Revenue [Line Items] | |||||||
Cashless payment products | [1] | $ 1,697 | $ 2,013 | $ 4,437 | $ 6,710 | ||
Complete cashless payment solutions: | |||||||
Sales of products | [3],[4] | 652 | 2,455 | 2,085 | 5,762 | ||
Licensing fees, transaction fees and services | [3],[5] | 1,516 | 1,631 | 4,472 | 4,878 | ||
Total | [3] | 2,168 | 4,086 | 6,557 | 10,640 | ||
Total revenues | 3,865 | 6,099 | 10,994 | 17,350 | |||
Petroleum [Member] | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Cashless payment products | [1] | ||||||
Complete cashless payment solutions: | |||||||
Sales of products | [3],[4] | 603 | 935 | 1,439 | 2,882 | ||
Licensing fees, transaction fees and services | [3],[5] | 327 | 383 | 950 | 1,061 | ||
Total | [3] | 930 | 1,318 | 2,389 | 3,943 | ||
Total revenues | 930 | 1,318 | 2,389 | 3,943 | |||
Retail and Mass Transit Ticketing [Member] | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Cashless payment products | [1] | 1,697 | 2,013 | 4,437 | 6,710 | ||
Complete cashless payment solutions: | |||||||
Sales of products | [3],[4] | 49 | 1,520 | 646 | 2,880 | ||
Licensing fees, transaction fees and services | [3],[5] | 1,189 | 1,248 | 3,522 | 3,817 | ||
Total | [3] | 1,238 | 2,768 | 4,168 | 6,697 | ||
Total revenues | $ 2,935 | $ 4,781 | $ 8,605 | $ 13,407 | |||
[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 occur when the products are delivered. | ||||||
[2] | Reclassified to conform with the current period presentation, see Note 1C(2). | ||||||
[3] | 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 occur 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. | ||||||
[4] | 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 occur when the products are delivered. | ||||||
[5] | 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. |
Revenues (Details 1)
Revenues (Details 1) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Revenue from Contract with Customer [Abstract] | ||
Trade receivables, net of allowance for doubtful accounts | $ 2,469 | $ 4,530 |
Customer advances | $ 110 | $ 141 |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | [1] | Sep. 30, 2019 | Sep. 30, 2018 | [1] | |
Discontinued Operations and Disposal Groups [Abstract] | ||||||
Revenues | $ 374 | $ 1,139 | ||||
Expenses | (36) | (332) | (279) | (924) | ||
Other income, net | 13 | |||||
Net (loss) profit from discontinued operations | $ (36) | $ 42 | $ (279) | $ 228 | ||
[1] | Reclassified to conform with the current period presentation, see Note 1C(2). |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value of Financial Instruments (Textual) | ||
Short-term bank deposits | $ 1,905 | $ 1,078 |
Short-term bank deposit pledged as security | $ 105 | $ 278 |
Equity (Details)
Equity (Details) | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Equity [Abstract] | ||
Expected dividend yield | 0.00% | 0.00% |
Expected volatility | 79.00% | 80.00% |
Risk-free interest rate | 2.07% | 1.92% |
Expected life - in years | 2 years 5 months 9 days | 2 years 3 months 29 days |
Equity (Details 1)
Equity (Details 1) - Stock Option Plans [Member] - $ / shares | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Number of options outstanding | ||
Outstanding - Beginning Balance | 1,461,000 | |
Options granted | 230,000 | |
Options expired or forfeited | (468,669) | |
Outstanding - Ending Balance | 1,222,331 | |
Exercisable | 760,978 | 855,642 |
Weighted average exercise price per share | ||
Outstanding - Beginning Balance | $ 1.24 | |
Options granted | 0.55 | |
Options expired or forfeited | 1.68 | |
Outstanding - Ending Balance | 0.94 | |
Exercisable | $ 0.96 | $ 1.32 |
Equity (Details 2)
Equity (Details 2) | 9 Months Ended |
Sep. 30, 2019$ / sharesshares | |
Options outstanding | |
Number Outstanding | shares | 1,222,331 |
Weighted average remaining contractual life (years) | 1 year 11 months 23 days |
Options exercisable | |
Number outstanding | shares | 760,978 |
Weighted average remaining contractual life (years) | 11 months 15 days |
Excercise Price Range One [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price, lower limit | $ 0.44 |
Exercise price, upper limit | $ 0.90 |
Options outstanding | |
Number Outstanding | shares | 643,000 |
Weighted average remaining contractual life (years) | 1 year 9 months 11 days |
Weighted Average Exercise Price | $ 0.69 |
Options exercisable | |
Number outstanding | shares | 420,000 |
Weighted average remaining contractual life (years) | 3 months 22 days |
Weighted Average Exercise Price | $ 0.74 |
Excercise Price Range Two [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price, lower limit | 1.07 |
Exercise price, upper limit | $ 1.68 |
Options outstanding | |
Number Outstanding | shares | 579,331 |
Weighted average remaining contractual life (years) | 2 years 2 months 12 days |
Weighted Average Exercise Price | $ 1.21 |
Options exercisable | |
Number outstanding | shares | 340,978 |
Weighted average remaining contractual life (years) | 1 year 9 months |
Weighted Average Exercise Price | $ 1.24 |
Equity (Details Textual)
Equity (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | ||
Equity (Textual) | ||||||
Warrants expires terms | The warrants expire during November 2019. | |||||
Outstanding warrants | 40,000 | 40,000 | ||||
Share exercise price | $ 0.95 | $ 0.95 | ||||
Stock-based compensation expenses | $ 6 | $ 65 | $ 96 | $ 180 | [1] | |
Stock options and warrants outstanding | 1,262,331 | 1,398,666 | ||||
Non-employees [Member] | ||||||
Equity (Textual) | ||||||
Options granted | 30,000 | 80,000 | ||||
Employee Stock Option [Member] | ||||||
Equity (Textual) | ||||||
Options granted | 230,000 | 100,000 | ||||
Weighted average fair value of options granted | $ 0.2 | $ 0.65 | ||||
Aggregate intrinsic value of outstanding options | 0 | $ 0 | $ 6 | |||
Aggregate intrinsic value of exercisable options | 0 | 0 | $ 4 | |||
Unrecognized compensation cost | $ 114 | $ 114 | ||||
Unrecognized compensation cost, weighted-average period | 1 year 18 days | |||||
Vesting period for the options terms | 3 years | |||||
Exercise prices | $ 0.55 | $ 1.33 | $ 0.55 | $ 1.33 | ||
Options expires terms | 5 years | |||||
[1] | Reclassified to conform with the current period presentation, see Note 1C(2). |
Operating Segments (Details)
Operating Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2019 | Sep. 30, 2018 | [1] | Sep. 30, 2019 | Sep. 30, 2018 | [1] | ||
Segment Reporting Information [Line Items] | |||||||
Revenues | $ 3,865 | $ 6,099 | $ 10,994 | $ 17,350 | |||
Reportable segment gross profit | 1,895 | [2] | 3,432 | [2] | 6,312 | 9,628 | [2] |
Reconciliation of reportable segment gross profit to gross profit for the period | |||||||
Depreciation | (190) | (202) | (588) | (626) | |||
Stock-based compensation | (1) | (1) | (3) | (3) | |||
Gross profit for the period in the consolidated financial statement | 1,704 | 3,229 | 5,721 | 8,999 | |||
Petroleum [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 929 | 1,317 | 2,388 | 3,942 | |||
Reportable segment gross profit | 310 | [2] | 682 | [2] | 1,106 | 2,000 | [2] |
Retail and Mass Transit Ticketing [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 2,936 | 4,782 | 8,606 | 13,408 | |||
Reportable segment gross profit | $ 1,585 | [2] | $ 2,750 | [2] | $ 5,206 | $ 7,628 | [2] |
[1] | Reclassified to conform with the current period presentation, see Note 1C(2). | ||||||
[2] | Gross profit as reviewed by the CODM, represents gross profit, adjusted to exclude depreciation and stock-based compensation. |
Operating Segments (Details Tex
Operating Segments (Details Textual) | 9 Months Ended |
Sep. 30, 2019Segments | |
Operating Segments (Textual) | |
Number of reportable segments | 2 |