Modsys International (MDSY) 10-Q 13 Aug 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Aug. 10, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	Modsys International Ltd
Entity Central Index Key	1,029,581
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,015
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		17,925,672

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
CURRENT ASSETS:
Cash and cash equivalents	$ 760	$ 449
Restricted cash	4	8
Trade accounts receivable, net	3,217	2,479
Other current assets	302	176
Total current assets	4,283	3,112
LONG-TERM ASSETS:
Property and equipment, net	275	321
Goodwill	25,803	25,803
Intangible assets and others, net	5,079	5,587
Total long-term assets	31,157	31,711
Total assets	35,440	34,823
CURRENT LIABILITIES:
Short-term bank credit and others	2,802	1,269
Trade accounts payable	1,508	1,230
Deferred revenue	531	546
Other current liabilities	875	989
Total current liabilities	5,716	4,034
LONG-TERM LIABILITIES:
Accrued severance pay, net	243	229
Loans from others	114	114
Other non-current liabilities	255	40
Total long-term liabilities	612	383
Total equity	29,112	30,406
Total liabilities and equity	$ 35,440	$ 34,823

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Condensed Consolidated Statements of Operations [Abstract]
Revenue	$ 3,327	$ 1,881	$ 5,613	$ 3,752
Cost of revenue	1,663	1,029	3,363	2,011
Gross profit	1,664	852	2,250	1,741
Research and development costs	360	191	746	525
Selling, general and administrative expenses	1,173	$ 1,458	2,493	2,873
Amortization of intangible assets	254		508
Total operating expenses	1,787	$ 1,649	3,747	3,398
Operating loss	(123)	(797)	(1,497)	(1,657)
Financial income (expense), net	9	6	(38)	35
Loss before taxes on income	(114)	$ (791)	(1,535)	(1,622)
Taxes on income	1		14	18
Net loss	(115)	$ (791)	(1,549)	(1,640)
Less: Net income (loss) attributable to non-controlling interest	(7)	(40)	(62)	35
Net loss attributable to ModSys International Ltd. shareholders	$ (108)	$ (751)	$ (1,487)	$ (1,675)
Loss per share - basic and diluted :
Attributable to the shareholders	$ (0.01)	$ (0.07)	$ (0.08)	$ (0.15)
Weighted average shares outstanding, basic and diluted	17,890	11,453	17,877	11,435

Condensed Consolidated Stateme4

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Condensed Consolidated Statements of Comprehensive Income [Abstract]
Net loss	$ (115)	$ (791)	$ (1,549)	$ (1,640)
Other comprehensive income
Total comprehensive loss	(115)	$ (791)	$ (1,549)	(1,640)
Comprehensive income (expense) attributable to the non-controlling interests	(7)	(40)	(62)	35
Comprehensive loss attributable to ModSys International Ltd. shareholders	$ (108)	$ (751)	$ (1,487)	$ (1,675)

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (115)	$ (791)	$ (1,549)	$ (1,640)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	275	16	555	54
Increase (decrease) in accrued severance pay, net	15	(9)	14	(23)
Stock-based compensation	$ 108	203	$ 255	385
Change in fair value of derivatives		(20)		(45)
Changes in operating assets and liabilities:
Decrease (increase) in trade receivables	$ (585)	118	$ (738)	(391)
Increase in other current assets	(63)	(12)	(115)	(60)
Increase (decrease) in trade payables	(95)	2	278	18
Increase (decrease) in other liabilities and deferred revenues	(169)	11	86	(462)
Net cash used in operating activities	$ (629)	(482)	(1,214)	(2,164)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment		(2)	(8)	(41)
Net cash used in investing activities		$ (2)	(8)	$ (41)
CASH FLOWS FROM FINANCING ACTIVITIES:
Short term bank credit and others	$ 583		1,533
Net cash provided by financing activities	583		1,533
NET CASH INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(46)	$ (484)	311	$ (2,205)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	806	871	449	2,592
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$ 760	$ 387	$ 760	$ 387

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2015
Summary of Significant Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 1 – Summary of Significant Accounting Policies: A. The Company ModSys International Ltd. (together with its subsidiaries, “the Company”, “we”, or “Modern Systems”) is an Israeli corporation, which operates in one operating segment of information technology (“IT”) modernization solutions. Modern Systems develops and markets enterprise legacy migration solutions and provides tools and professional services to international markets through several entities including wholly-owned and majority-owned subsidiaries located in: the United States, the United Kingdom, Italy, Romania and Israel. These technologies and services allow businesses to migrate from their legacy mainframe and distributed information technology infrastructures to modern environments and programming languages. The Company has incurred negative cash flows from operating activities and net losses in recent years. The Company currently uses its credit line with Comerica to support its negative cash flows position. Management believes that the Company’s current cash position, together with its available credit line and expected equity event secured by a commitment by one of the Company's major shareholder, is sufficient to support the ongoing operations for the next twelve months . B. Recently Issued Accounting Pronouncements In January 2015, the Financial Accounting Standard Board ("FASB") issued ASU 2015-01, "Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items", eliminates the requirement to consider whether an underlying event or transaction is extraordinary, and if so, to separately present the item in the income statement net of tax, after income from continuing operations. Items that are either unusual in nature or infrequently occurring will continue to be reported as a separate component of income from continuing operations. Alternatively, these amounts may still be disclosed in the notes to the financial statements. The same requirement has been expanded to include items that are both unusual and infrequent. ASU 2015-01 is effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted from the beginning of the fiscal year of adoption. The Company does not expect material impacts on its consolidated financial statements upon adoption. In April 2015, the FASB issued ASU 2015-03, "Simplifying the Presentation of Debt Issuance Costs", requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability in a manner consistent with the treatment for debt discounts. The amendments in this update do not affect the recognition and measurement guidance for debt issuance costs. In addition, the ASU requires that the amortization of debt issuance costs be reported as interest expense. The standard is effective for fiscal years and the interim periods within those fiscal years beginning on or after December 15, 2015. ASU 2015-03 should be applied retrospectively to all prior periods presented in the financial statements, subject to the disclosure requirements for a change in an accounting principle. Early adoption is permitted for financial statements that have not been previously issued. The Company does not expect material impacts on its consolidated financial statements upon adoption. C. Unaudited Interim Condensed Consolidated Financial Statements The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) for interim financial information. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles in the United States for the annual financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ended December 31, 2015. The interim financial statements should be read in conjunction with the financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. D. Use of Estimates The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. E. Principles of Consolidation The consolidated financial statements include the Company's and its subsidiaries’ financial statements. The consolidated financial statements of subsidiaries are included in the condensed consolidated financial statements from the date that control is achieved until the date that control ceases. Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its operating activities. In assessing control, legal and contractual rights are taken into account. Intercompany transactions and balances are eliminated upon consolidation.

Mergers

Mergers	6 Months Ended
	Jun. 30, 2015
Mergers [Abstract]
Mergers	Note 2 – Mergers: A. Zulu Intercompany Merger On April 23, 2015, the Company completed the intercompany merger (the "Zulu Intercompany Merger") of their majority-owned subsidiary (71.83% ownership), Zulu Software, Inc. with and into the Company’s wholly-owned subsidiary, MS Modernization Services, Inc. as part of an internal organizational restructuring. The name of the surviving subsidiary is MS Modernization Services, Inc. As a result of the intercompany merger, ModSys International Ltd. owns 88.7% of the surviving subsidiary MS Modernization Services, Inc. B. Ateras Merger On December 1, 2014, the Company completed a merger with Sophisticated Business Systems, Inc., a Texas corporation doing business as “Ateras.” At the closing, BP-AT Acquisition LLC, a Delaware limited liability company and a direct, wholly-owned subsidiary of Modern Systems Corporation (f/k/a BluePhoenix Solutions USA, Inc.), a Delaware corporation and an indirect, wholly-owned subsidiary of ModSys International Ltd. merged with and into Ateras (the “ Ateras Merger”). As a result of the Ateras Merger, the separate corporate existence of BP-AT Acquisition LLC ceased and Ateras continued as the surviving corporation and a wholly-owned subsidiary of Modern Systems Corporation. The new entity was then renamed MS Modernization Services, Inc. As of April 2015, due to the Zulu intercompany merger, MS Modernization Services is now a majority-owned subsidiary of Modern Systems and directly and indirectly owned at 88.7% by ModSys International Ltd. (See above discussion of Zulu Intercompany Merger). Upon the closing of the Ateras Merger, the Company issued 6,195,494 unregistered ordinary shares, par value NIS 0.04 per share, to the former Ateras shareholders in exchange for the cancellation of the shares of Ateras stock held by such shareholders in connection with the Ateras Merger. Due to the fact the issuance was of restricted shares, the purchase consideration was calculated with an 11.4% discount for lack of marketability on the share price as of the closing date. It should be noted that sales of restricted shares pursuant to Rule 144 were subject to a minimum six-month holding period and sales by any affiliate shareholders will be subject to volume and other limitations. The purchase consideration was allocated to tangible assets and intangible assets acquired based on their estimated fair values using a purchase price allocation which was finalized during 2015 and performed by an independent third party. The fair value assigned to identifiable intangible assets acquired has been determined by using valuation methods that discount expected future cash flows to present value using estimates and assumptions determined by management. The Company determined that the fair values of assets acquired exceeded the purchase price by approximately $13.3 million, which is recognized as goodwill. Upon the purchase price allocation, an amount of $345 thousand was allocated to order backlog to be amortized over a 10 month period and an amount of $5.2 million was allocated to technology to be amortized over an 8.7 year period. The table below summarizes the estimates of the fair value of assets acquired at the purchase date. Cash $ 14 Receivables 1,094 Other current assets 187 Fixed assets 72 Other long-term assets 14 Accounts payable (640 ) Other accounts payable (412 ) Deferred revenue (388 ) Long-term liabilities (40 ) Identifiable intangible assets: Order backlog 345 Technology 5,228 Goodwill 13,302 Total assets acquired $ 18,776

Goodwill

Goodwill	6 Months Ended
	Jun. 30, 2015
Goodwill [Abstract]
Goodwill	Note 3 – Goodwill: The following is a summary of the change in the carrying amount of goodwill as of June 30, 2015 and December 31, 2014: June 30, December 31, 2015 2014 Unaudited Audited (in thousands) Balance as of January 1. $ 67,618 $ 54,316 Accumulated impairment losses at the beginning of the period (41,815 ) (41,815 ) 25,803 12,501 Changes during the period Goodwill related to acquisition of Sophisticated Business Solutions, Inc. (“Ateras”) - 13,302 Balance at end of period $ 25,803 $ 25,803 Goodwill is not amortized, but rather is subject to an annual impairment test. The Company is one operating segment and one reporting unit related to its overall IT modernization .The goodwill impairment tests are conducted in two steps. In the first step, the Company determines the fair value of the reporting unit. If the net book value of the reporting unit exceeds its fair value, the Company would then perform the second step of the impairment test which requires allocation of the reporting unit’s fair value of all of its assets and liabilities in a manner similar to an acquisition cost allocation, with any residual fair value being allocated to goodwill. The implied fair value of the goodwill is then compared to the carrying value to determine impairment, if any. The company determined the fair value of a reporting unit using the market approach which is based on the market capitalization by using the share price of the Company in the NASDAQ stock exchange and an appropriate control premium. During the second quarter, due to a decrease of the Company's share price, the Company assessed whether goodwill impairment is required. As of June 30, 2015 the market capitalization of the Company was higher than the net book value of the reporting unit and therefore there was no need to calculate a control premium or to continue to step 2.

Fair Value Measurement

Fair Value Measurement	6 Months Ended
	Jun. 30, 2015
Fair Value Measurement [Abstract]
Fair Value Measurement	Note 4 – Fair Value Measurements: The accounting guidance establishes a valuation hierarchy for disclosure of the inputs to valuation used to measure fair value. This hierarchy prioritizes the inputs into three broad levels as follows: Level 1 – Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in active markets that the Company has the ability to access at the measurement date. Level 2 – Observable inputs such as quoted prices for similar instruments and quoted prices in markets that are not active, and inputs that are directly observable or can be corroborated by observable market data. The types of assets and liabilities included in Level 2 are typically either comparable to actively traded securities or contracts, such as treasury securities with pricing interpolated from recent trades of similar securities, or priced with models using highly observable inputs, such as commodity options priced using observable forward prices and volatilities. Level 3 – Significant inputs to pricing that have little or no observability as of the reporting date. The types of assets and liabilities included in Level 3 are those with inputs requiring significant management judgment or estimation, such as the complex and subjective models and forecasts used to determine the fair value of financial instruments. The Company's financial assets which are considered Level 1 are cash, cash equivalents and restricted cash.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2015
Commitments and Contingencies [Abstract]
Commitments and Contingencies	Note 5 – Commitments and Contingencies: A. Commitments: Israel’s Office of the Chief Scientist Ministry of Production in Italy. B. Contingencies: The Company evaluates estimated losses for indemnifications due to product infringement under FASB Topic ASC 450 “Contingencies”. At this time, it is not possible to determine the maximum potential amount under these indemnification clauses due to lack of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. Such indemnification agreements may not be subject to maximum loss clauses. Historically, the Company has not incurred costs as a result of obligations under these agreements and has not accrued any liabilities related to such indemnification obligations in the Company’s financial statements.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2015
Subsequent Events [Abstract]
Subsequent Events	Note 6 – Subsequent Events: On July 13, 2015, the Company was notified by the Nasdaq Stock Market that it is not in compliance with Nasdaq Listing Rule 5450(b)(1)(C) requiring the Company to maintain a minimum $5 million of Market Value of Publicly Held Shares (“MVPHS”), which consists of shares not held directly or indirectly by an officer, director or any person who is the beneficial owner of more than 10 percent of the total shares outstanding. Pursuant to Nasdaq Listing Rules, the Company has 180 calendar days, or until January 11, 2016, to regain compliance with Nasdaq Listing Rule 5450(b)(1)(C). To regain compliance, the Company’s MVPHS must close at $5 million or more for a minimum of 10 consecutive business days.

Summary of Significant Accoun12

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2015
Summary of Significant Accounting Policies [Abstract]
The Company	A. The Company ModSys International Ltd. (together with its subsidiaries, “the Company”, “we”, or “Modern Systems”) is an Israeli corporation, which operates in one operating segment of information technology (“IT”) modernization solutions. Modern Systems develops and markets enterprise legacy migration solutions and provides tools and professional services to international markets through several entities including wholly-owned and majority-owned subsidiaries located in: the United States, the United Kingdom, Italy, Romania and Israel. These technologies and services allow businesses to migrate from their legacy mainframe and distributed information technology infrastructures to modern environments and programming languages. The Company has incurred negative cash flows from operating activities and net losses in recent years. The Company currently uses its credit line with Comerica to support its negative cash flows position. Management believes that the Company’s current cash position, together with its available credit line and expected equity event secured by a commitment by one of the Company's major shareholder, is sufficient to support the ongoing operations for the next twelve months .
Recently Issued Accounting Pronouncements	B. Recently Issued Accounting Pronouncements In January 2015, the Financial Accounting Standard Board ("FASB") issued ASU 2015-01, "Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items", eliminates the requirement to consider whether an underlying event or transaction is extraordinary, and if so, to separately present the item in the income statement net of tax, after income from continuing operations. Items that are either unusual in nature or infrequently occurring will continue to be reported as a separate component of income from continuing operations. Alternatively, these amounts may still be disclosed in the notes to the financial statements. The same requirement has been expanded to include items that are both unusual and infrequent. ASU 2015-01 is effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted from the beginning of the fiscal year of adoption. The Company does not expect material impacts on its consolidated financial statements upon adoption. In April 2015, the FASB issued ASU 2015-03, "Simplifying the Presentation of Debt Issuance Costs", requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability in a manner consistent with the treatment for debt discounts. The amendments in this update do not affect the recognition and measurement guidance for debt issuance costs. In addition, the ASU requires that the amortization of debt issuance costs be reported as interest expense. The standard is effective for fiscal years and the interim periods within those fiscal years beginning on or after December 15, 2015. ASU 2015-03 should be applied retrospectively to all prior periods presented in the financial statements, subject to the disclosure requirements for a change in an accounting principle. Early adoption is permitted for financial statements that have not been previously issued. The Company does not expect material impacts on its consolidated financial statements upon adoption.
Unaudited Interim Condensed Consolidated Financial Statements	C. Unaudited Interim Condensed Consolidated Financial Statements The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) for interim financial information. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles in the United States for the annual financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ended December 31, 2015. The interim financial statements should be read in conjunction with the financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014.
Use of Estimates	D. Use of Estimates The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates.
Principles of Consolidation	E. Principles of Consolidation The consolidated financial statements include the Company's and its subsidiaries’ financial statements. The consolidated financial statements of subsidiaries are included in the condensed consolidated financial statements from the date that control is achieved until the date that control ceases. Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its operating activities. In assessing control, legal and contractual rights are taken into account. Intercompany transactions and balances are eliminated upon consolidation.

Mergers (Tables)

Mergers (Tables)	6 Months Ended
	Jun. 30, 2015
Mergers [Abstract]
Summary of estimated fair value of assets acquired at purchase date	Cash $ 14 Receivables 1,094 Other current assets 187 Fixed assets 72 Other long-term assets 14 Accounts payable (640 ) Other accounts payable (412 ) Deferred revenue (388 ) Long-term liabilities (40 ) Identifiable intangible assets: Order backlog 345 Technology 5,228 Goodwill 13,302 Total assets acquired $ 18,776

Goodwill (Tables)

Goodwill (Tables)	6 Months Ended
	Jun. 30, 2015
Goodwill [Abstract]
Schedule of Goodwill	June 30, December 31, 2015 2014 Unaudited Audited (in thousands) Balance as of January 1. $ 67,618 $ 54,316 Accumulated impairment losses at the beginning of the period (41,815 ) (41,815 ) 25,803 12,501 Changes during the period Goodwill related to acquisition of Sophisticated Business Solutions, Inc. (“Ateras”) - 13,302 Balance at end of period $ 25,803 $ 25,803

Mergers (Details)

Mergers (Details) $ in Thousands	Jun. 30, 2015USD ($)
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
Cash	$ 14
Receivables	1,094
Other current assets	187
Fixed assets	72
Other long-term assets	14
Accounts payable	(640)
Other accounts payable	(412)
Deferred revenue	(388)
Long-term liabilities	(40)
Identifiable intangible assets:
Order backlog	345
Technology	5,228
Goodwill	13,302
Total assets acquired	$ 18,776

Mergers (Details Textual)

Mergers (Details Textual) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2015	Apr. 23, 2015	Dec. 31, 2014	Dec. 31, 2013
Mergers (Textual)
Goodwill	$ 25,803		$ 25,803	$ 54,316
Zulu Intercompany Merger [Member]
Mergers (Textual)
Intercompany merger, description	On April 23, 2015, the Company completed the intercompany merger (the "Zulu Intercompany Merger") of their majority-owned subsidiary (71.83% ownership), Zulu Software, Inc. with and into the Company's wholly-owned subsidiary, MS Modernization Services, Inc. as part of an internal organizational restructuring. The name of the surviving subsidiary is MS Modernization Services, Inc. As a result of the intercompany merger, ModSys International Ltd. owns 88.7% of the surviving subsidiary MS Modernization Services, Inc.
Zulu Intercompany Merger [Member] | MS Modernization Services, Inc [Member]
Mergers (Textual)
Ownership equity percentage		88.70%
Ateras Merger [Member]
Mergers (Textual)
Unregistered ordinary shares issued	6,195,494
Unregistered ordinary shares issued, par value	$ 0.04
Percentage of discount for lack of marketability	11.40%
Goodwill	$ 13,300
Ateras Merger [Member] | Order Backlog [Member]
Mergers (Textual)
Amortized period	10 months
Amount allocated to be amortized	$ 345
Ateras Merger [Member] | Technology [Member]
Mergers (Textual)
Amortized period	8 years 8 months 12 days
Amount allocated to be amortized	$ 5,200

Goodwill (Details)

Goodwill (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Goodwill [Abstract]
Goodwill - Beginning Balance	$ 25,803	$ 54,316
Accumulated impairment losses at the beginning of the period	(41,815)	(41,815)
Changes during the period	$ 25,803	12,501
Goodwill related to acquisition of Sophisticated Business Solutions ("Ateras")		13,302
Goodwill - Ending Balance	$ 25,803	$ 25,803

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($) $ in Thousands	1 Months Ended	6 Months Ended
	Jul. 31, 2007	Jun. 30, 2015
Ministry of Production in Italy [Member]
Other Commitments [Line Items]
Proceeds from issuance of debt and other	$ 585
Loan payment period	10 years
Maturity date	Sep. 30, 2018
Debt instrument, minimum interest rate	0.87%
Long-term debt		$ 154
Percent of proceeds considered long-term debt	63.50%
Percent of proceeds considered a grant	36.50%
Chief Scientist [Member]
Other Commitments [Line Items]
Royal commitment, percent of funded product sales		3.00%
Royalty commitment, maximum percent of grant linked to product sales		100.00%
Contingent liability, maximum potential royalty payment		$ 185

Subsequent Events (Details)

Subsequent Events (Details)	Jul. 13, 2015
Subsequent Event [Member]
Subsequent Event [Line Items]
Entity Listing, Description	On July 13, 2015, the Company was notified by the Nasdaq Stock Market that it is not in compliance with Nasdaq Listing Rule 5450(b)(1)(C) requiring the Company to maintain a minimum $5 million of Market Value of Publicly Held Shares ("MVPHS"), which consists of shares not held directly or indirectly by an officer, director or any person who is the beneficial owner of more than 10 percent of the total shares outstanding. Pursuant to Nasdaq Listing Rules, the Company has 180 calendar days, or until January 11, 2016, to regain compliance with Nasdaq Listing Rule 5450(b)(1)(C). To regain compliance, the Company's MVPHS must close at $5 million or more for a minimum of 10 consecutive business days.