Vislink (VISL) 10-Q 14 Aug 17 2017 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Aug. 14, 2017
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2
Entity Registrant Name	xG TECHNOLOGY, INC.
Entity Central Index Key	1,565,228
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Trading Symbol	XGTI
Entity Common Stock, Shares Outstanding		12,235,865

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Current assets
Cash	$ 4,656	$ 9,054
Accounts receivable, net	10,393	1,369
Inventories, net	18,669	2,722
Prepaid expenses and other current assets	1,879	111
Total current assets	35,597	13,256
Property and equipment, net	4,172	771
Intangible assets, net	8,236	5,872
Total assets	48,005	19,899
Current liabilities
Accounts payable	10,366	1,606
Accrued expenses	4,183	1,813
Accrued interest	132	269
Due to related parties	1,633	96
Deferred revenue and customer deposits	189	186
Obligation under capital leases	43	58
Derivative liabilities	1,373	1,183
Total current liabilities	17,919	5,211
Long-term obligation under capital leases, net of current portion	36	49
Convertible note payable	2,000	2,000
Total liabilities	19,955	7,260
Commitments and contingencies
Stockholders’ equity
Preferred stock - $0.00001 par value per share: 10,000,000 shares authorized as of June 30, 2017 and December 31, 2016; 0 shares issued and outstanding as of June 30, 2017 and December 31, 2016	0	0
Common stock, - $0.00001 par value, 100,000,000 shares authorized, 11,621,229 and 7,606,518 shares issued and 11,621,227 and 7,606,516 shares outstanding as of June 30, 2017 and December 31, 2016, respectively	0	0
Additional paid in capital	229,772	221,960
Accumulated other comprehensive gain	348	0
Treasury stock, at cost - 2 shares at June 30, 2017 and December 31, 2016, respectively	(22)	(22)
Accumulated deficit	(202,048)	(209,299)
Total stockholders’ equity	28,050	12,639
Total liabilities and stockholders’ equity	$ 48,005	$ 19,899

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2017	Dec. 31, 2016
Preferred stock, par value (in dollars per share)	$ 0.00001	$ 0.00001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.00001	$ 0.00001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	11,621,229	7,606,518
Common Stock, Shares, Outstanding	11,621,227	7,606,516
Treasury stock, shares	2	2

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Revenue	$ 14,218	$ 1,655	$ 23,553	$ 2,584
Cost of revenue and operating expenses
Cost of components and personnel	9,695	814	15,266	1,240
Inventory valuation adjustments	(23)	42	76	110
General and administrative expenses	6,441	2,377	12,989	4,413
Research and development expenses	2,511	1,542	4,385	3,202
Amortization and depreciation	1,143	1,512	2,132	2,867
Total cost of revenue and operating expenses	19,767	6,287	34,848	11,832
Loss from operations	(5,549)	(4,632)	(11,295)	(9,248)
Other income (expense)
Changes in fair value of derivative liabilities	27	(1,773)	(190)	(1,260)
Offering expenses	0	(158)	0	(158)
Gain on bargain purchase	3,691	2,237	15,530	2,749
Gain on debt and payables extinguishments	1,090	0	3,990	0
Other expense	(253)	(58)	(253)	(57)
Interest expense, net	(47)	(198)	(531)	(671)
Total other income	4,508	50	18,546	603
Net income (loss)	(1,041)	(4,582)	7,251	(8,645)
Dividends and deemed dividends	0	(1,438)	0	(1,808)
Net income (loss) attributable to common shareholders	$ (1,041)	$ (6,020)	$ 7,251	$ (10,453)
Basic earnings (loss) per share	$ (0.09)	$ (9.80)	$ 0.69	$ (25.43)
Diluted earnings (loss) per share	$ (0.09)	$ (9.80)	$ 0.69	$ (25.43)
Weighted average number of shares outstanding:
Basic	11,405	614	10,500	411
Diluted	11,405	614	10,500	411
Comprehensive loss:
Net income (loss)	$ (1,041)	$ (4,582)	$ 7,251	$ (8,645)
Unrealized gain on currency translation adjustment	365	0	348	0
Comprehensive income (loss)	$ (676)	$ (4,582)	$ 7,599	$ (8,645)

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Cash flows provided by (used in) operating activities
Net income (loss)	$ (1,041)	$ (4,582)	$ 7,251	$ (8,645)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Gain on bargain purchase	(3,691)	(2,237)	(15,530)	(2,749)
Gain on debt and payables extinguishment	(1,090)	0	(3,990)	0
Stock-based compensation	438	82	603	180
Payment made in stock (payroll and consultants)			1,426	1,020
Provision for bad debt			0	97
Inventory valuation adjustments			76	110
Depreciation and amortization	1,143	1,512	2,132	2,867
Change in fair value of derivative liabilities			190	1,260
Guaranteed interest and debt issuance costs			434	0
Amortization of debt discount			0	50
Offering expenses	0	158	0	158
Changes in assets and liabilities
Accounts receivable			(1,895)	72
Inventory			2,181	480
Prepaid expenses and other current assets			(559)	(67)
Accounts payable			3,187	329
Deferred rent			0	(64)
Accrued expenses and interest expense			3,205	196
Deferred revenue and customer deposits			3	33
Due to related parties			1,657	312
Net cash provided by (used in) operating activities			371	(4,361)
Cash flows used in investing activities
Cash acquired with the acquisition of IMT			0	(23)
Cash disbursed for property and equipment			(395)	(12)
Cash used in Vislink acquisition			(6,500)	0
Net cash used in investing activities			(6,895)	(35)
Cash flows provided by financing activities
Principal repayments made on of capital lease obligations			(28)	(25)
Proceeds from multiple issuances of convertible preferred stock, common stock and warrants			3,500	4,537
Costs incurred in connection with multiple financings			(459)	(791)
Proceeds received from issuance of convertible notes payable			0	1,000
Principal repayments of Vislink notes			(2,000)	0
Principal repayments of convertible notes payable			0	(1,031)
Principal repayments of notes payable			(824)	0
Proceeds from the exercise of warrants			1,589	492
Net cash provided by financing activities			1,778	4,182
Effect of exchange rate changes on cash			348	0
Net decrease in cash			(4,398)	(214)
Cash, beginning of period			9,054	368
Cash, end of period	4,656	154	4,656	154
Cash paid for interest			242	472
Cash paid for taxes			0	0
Supplemental cash flow disclosures of non-cash investing and financing activities
Conversion of convertible notes payable			0	465
Settlement of services previously accrued			295	0
Settlement of amounts due to related parties			120	244
Settlement of notes payable to sellers of Vislink with assumption of liabilities and debt extinguishment			7,500	0
Issuance of Series D Convertible Preferred Stock			0	500
Stock issued as payment of interest on convertible note			90	0
Reclassification of derivative liabilities to stockholders’ equity upon the exercise of warrants			0	376
Dividends and deemed dividend on Series B Convertible Preferred Stock conversion			0	1,808
Purchase Consideration
Amount of consideration:			16,000	3,000
Assets acquired and liabilities assumed at preliminary fair value
Cash	0	477	0	477
Accounts receivable	7,129	676	7,129	676
Inventories	18,234	3,329	18,234	3,329
Property and equipment	3,868	1,470	3,868	1,470
Prepaid expenses	1,209	55	1,209	55
Accounts payable	(2,079)	(423)	(2,079)	(423)
Deferred rent	0	(167)	0	(167)
Accrued expenses	(451)	(378)	(451)	(378)
Net tangible assets acquired	27,910	5,039	27,910	5,039
Identifiable intangible assets
Total Identifiable Intangible Assets	3,620	710	3,620	710
Total net assets acquired	31,530	5,749	31,530	5,749
Consideration paid			16,000	3,000
Preliminary gain on bargain purchase	3,691	2,237	15,530	2,749
Customer Relationships [Member]
Identifiable intangible assets
Total Identifiable Intangible Assets	2,520	360	2,520	360
Trademarks and Trade Names [Member]
Identifiable intangible assets
Total Identifiable Intangible Assets	$ 1,100	$ 350	1,100	350
Series B Preferred Stock [Member]
Supplemental cash flow disclosures of non-cash investing and financing activities
Conversion of Convertible Preferred Stock			0	2,722
Series D Preferred Stock [Member]
Supplemental cash flow disclosures of non-cash investing and financing activities
Conversion of Convertible Preferred Stock			$ 648	$ 250

ORGANIZATION AND SUMMARY OF SIG

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2017
Accounting Policies [Abstract]
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block]	NOTE 1 — ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The overarching strategy of xG Technology, Inc. (“xG”, or the “Company”) is to design, develop and deliver advanced wireless communications solutions that provide customers in our target markets with enhanced levels of reliability, mobility, performance and efficiency in their business operations and missions. xG’s business lines include the brands of Integrated Microwave Technologies LLC (“IMT”), Vislink Communication Systems (“Vislink”, or “VCS”), and xMax. There is considerable brand interaction, owing to complementary market focus, compatible product and technology development roadmaps, and solution integration opportunities. In addition to these brands, xG has a dedicated Federal Sector Group focused on providing next-generation spectrum sharing solutions to national defense, scientific research and other federal organizations. IMT: On January 29, 2016, xG completed the acquisition of the net assets that constituted the business of IMT, pursuant to an Asset Purchase Agreement by and between xG and Skyview Capital, LLC. The IMT business develops, manufactures and sells microwave communications equipment utilizing COFDM (Coded Orthogonal Frequency Division Multiplexing) technology. COFDM is a transmission technique that combines encoding technology with OFDM (Orthogonal Frequency Division Multiplexing) modulation to provide the low latency and high image clarity required for real-time live broadcasting video transmissions. IMT has extensive experience in ultra-compact COFDM wireless technology, and this has allowed IMT to develop integrated solutions over the past 20 years that deliver reliable video footage captured from both aerial and ground-based sources to fixed and mobile receiver locations. Vislink: On February 2, 2017, the Company completed the acquisition of certain assets and liabilities related to the hardware segment of Vislink International Limited, an England and Wales registered limited company (the ‘‘UK Seller’’), and Vislink Inc., a Delaware corporation (the ‘‘US Seller’’, and together with the UK Seller, the ‘‘Sellers’’), pursuant to a Business Purchase Agreement, dated December 16, 2016, as amended on January 16, 2017, by and among the Company, the Sellers and Vislink PLC, an England and Wales registered limited company, as guarantor. The Company refers to the hardware segment acquired as Vislink Communications Systems (‘‘VCS’’). VCS specializes in the wireless capture, delivery and management of secure, high-quality, live video from the field to the point of usage. VCS designs and manufactures products encompassing microwave radio components, satellite communication, cellular and wireless camera systems, and associated amplifier items. VCS serves two core markets: broadcast and media and public safety and surveillance. In the broadcast and media market, VCS provides broadcast communication links for the collection of live news, sports and entertainment events. VCS’ customers in the broadcast and media market include national broadcasters, multi-channel broadcasters, network owners and station groups, sports and live broadcasters and hosted service providers. In the public safety and surveillance market, VCS provides secure video communications and mission-critical solutions for law enforcement, defense and homeland security applications. VCS’ customers in the public safety and surveillance market include metropolitan, regional and national law enforcement agencies as well as domestic and international defense agencies and organizations. The accompanying unaudited condensed consolidated financial statements were prepared using generally accepted accounting principles for interim financial information and the instructions to Form 10-Q and Regulation S-X. Accordingly, these financial statements do not include all information or notes required by generally accepted accounting principles for annual financial statements and should be read in conjunction with the consolidated financial statements as filed on the Company's Annual Report on Form 10-K for the year ended December 31, 2016, as amended. In the opinion of management, the unaudited condensed consolidated financial statements included herein contain all adjustments necessary to present fairly the Company's financial position as of June 30, 2017, the results of its operations for the three and six months ended June 30, 2017 and 2016, the results of its cash flows for the six months ended June 30, 2017 and 2016. Such adjustments are of a normal recurring nature. The results of operations for the three and six months ended June 30, 2017 may not be indicative of results for the year ended December 31, 2017 The condensed consolidated financial statements which have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) include the accounts of xG and its wholly-owned subsidiaries, IMT and Vislink, since the date the acquisition of IMT and Vislink were completed. All intercompany transactions and balances have been eliminated in the consolidation. Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the operating decision makers, or decision-making group, in making decisions on how to allocate resources and assess performance. The Company’s decision-making group is the senior executive management team. The Company and the decision-making group view the Company’s operations and manage its business as one operating segment. All long-lived assets of the Company reside in the U.S. and U.K. The Company accounts for stock-based compensation in accordance with Accounting Standards Codification (“ASC”) 718, Compensation—Stock Compensation, which requires the measurement and recognition of compensation expense for all stock-based payment awards made to employees and non-employee directors, including employee stock options. Compensation expense based on the grant date fair value is generally amortized over the requisite service period of the award on a straight-line basis. The fair value of options is calculated using the Black-Scholes option pricing model to determine the fair value of stock options on the date of grant based on key assumptions such as stock price, expected volatility and expected term. The Company’s estimates of these assumptions are primarily based on historical data, judgment regarding future trends and factors. Management makes estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates and assumptions include reserves and write-downs related to receivables and inventories, the recoverability of long-lived assets, the valuation allowance relating to the Company’s deferred tax assets, valuation of equity and derivative instruments, and debt discounts and the valuation of the assets and liabilities acquired in the acquisitions of IMT and Vislink. The Company recognizes revenues when persuasive evidence of an arrangement exists, services have been rendered, the price is fixed and determinable, and collectability is reasonably assured. Revenues from management and consulting, time-and-materials service contracts, maintenance agreements and other services are recognized as the services are provided or at the time the goods are shipped and title has passed. The Company reports earnings per share in accordance with ASC Topic 260, “Earnings Per Share,” which establishes standards for computing and presenting earnings per share. Basic earnings per share is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income available to common shareholders by the weighted-average number of common shares and dilutive common share equivalents then outstanding. For the three and six month period ended June 30, 2017, potential common share equivalents consist of 8,182,497 3,555,500 shares were excluded for the three and six months ended June 30, 2017 since they had an anti-dilutive effect. The common stock warrants were excluded as they were out of the money and had an anti-dilutive effect. There were no such participating securities outstanding during the six-month period ended June 30, 2016 GAAP requires disclosing the fair value of financial instruments to the extent practicable for financial instruments which are recognized or unrecognized in the balance sheet. The fair value of the financial instruments disclosed herein is not necessarily representative of the amount that could be realized or settled, nor does the fair value amount consider the tax consequences of realization or settlement. In assessing the fair value of financial instruments, the Company uses a variety of methods and assumptions, which are based on estimates of market conditions and risks existing at the time. For certain instruments, including accounts receivable, accounts payable, and accrued expenses, the Company estimated that the carrying amount approximated fair value because of the short maturities of these instruments. All debt is based on current rates at which the Company could borrow funds with similar remaining maturities and approximates fair value. GAAP establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use on unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is described below: Level 1 – Quoted prices in active markets for identical assets or liabilities. Level 2 – Observable prices that are based on inputs not quoted on active markets, but corroborated by market data. Level 3 – Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. The functional currency of our foreign subsidiaries is typically the applicable local currency. The translation from the respective foreign currencies to United States Dollars (U.S. Dollars) is performed for balance sheet accounts using current exchange rates in effect at the balance sheet date and for income statement accounts using a weighted average exchange rate during the period. Gains or losses resulting from such translation are included as a separate component of accumulated other comprehensive income. Gains or losses resulting from foreign currency transactions are included in foreign currency income or loss except for the effect of exchange rates on long-term inter-company transactions considered to be a long-term investment, which are accumulated and credited or charged to other comprehensive income. Transaction gains and losses are recognized in the Company’s results of operations based on the difference between the foreign exchange rates on the transaction date and on the reporting date. The Company recognized a net foreign exchange loss of approximately $ 158,000 238,000 365,000 348,000 The exchange rate adopted for the foreign exchange transactions are the rates of exchange as quoted on OANDA, a Canadian-based foreign exchange company providing currency conversion, online retail foreign exchange trading, online foreign currency transfers, forex information and website. Translation of amounts from British Pounds into U.S. Dollars was made at the following exchange rates for the respective periods: · As of June 30, 2017 – British Pounds $ 1.30017 1.00 · For the six months ended June 30, 2017 – British Pounds $ 1.24675 1.00 Management has evaluated subsequent events or transactions occurring through the date the condensed consolidated financial statements were issued and determined that no events or transactions are required to be disclosed herein, except as disclosed. In July 2017, FASB issued ASU No. 2017-11, Earnings per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480), Derivatives and Hedging (Topic 815). ASU 2017-11 consists of two parts. The amendments in Part I of this Update change the classification analysis of certain equity-linked financial instruments (or embedded features) with down round features. When determining whether certain financial instruments should be classified as liabilities or equity instruments, a down round feature no longer precludes equity classification when assessing whether the instrument is indexed to an entity’s own stock. The amendments also clarify existing disclosure requirements for equity-classified instruments. As a result, a freestanding equity-linked financial instrument (or embedded conversion option) no longer would be accounted for as a derivative liability at fair value as a result of the existence of a down round feature. For freestanding equity classified financial instruments, the amendments require entities that present earnings per share (EPS) in accordance with Topic 260 to recognize the effect of the down round feature when it is triggered. That effect is treated as a dividend and as a reduction of income available to common shareholders in basic EPS. Convertible instruments with embedded conversion options that have down round features are now subject to the specialized guidance for contingent beneficial conversion features (in Subtopic 470-20, Debt—Debt with Conversion and Other Options), including related EPS guidance (in Topic 260). The amendments in Part II of this Update re-characterize the indefinite deferral of certain provisions of Topic 480 that now are presented as pending content in the Codification, to a scope exception. Those amendments do not have an accounting effect. For public business entities, the amendments in Part I of this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. For all other entities, the amendments in Part I of this Update are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted for all entities, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The amendments in Part II of this Update do not require any transition guidance because those amendments do not have an accounting effect. Management is currently assessing the applicability of ASU 2017-11 and has not determined the impact of the adoption, if any, as of June 30, 2017. On May 10, 2017, the FASB issued ASU 2017-09, Scope of Modification Accounting Both ASU 2014-09 and ASU 2017-05 will be effective for public entities for annual and interim reporting periods beginning after December 15, 2017 and early adoption is permitted in periods ending after December 15, 2016. ASU 2014-09 and ASU 2017-05 allow for either full or modified retrospective ("cumulative effect") adoption. Both standards must be adopted concurrently. We are currently evaluating the potential impact of adopting both ASU 2014-09 and ASU 2017-05 and the impact this guidance will have on our consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers ASU 2014-09 also created guidance governing the sale of non-financial assets with customers and non-customers with the only difference in the treatment of these transactions being presentation in the statement of operations (revenue and expense is reported when the sale is to a customer and net gain or loss is reported when the sale is to a non-customer). Based on the nature of our business, we believe that our property sales represent transactions with non-customers.

LIQUIDITY AND FINANCIAL CONDITI

LIQUIDITY AND FINANCIAL CONDITION	6 Months Ended
	Jun. 30, 2017
LIQUIDITY AND FINANCIAL CONDITION [Abstract]
LIQUIDITY AND FINANCIAL CONDITION [Text Block]	NOTE 2 — LIQUIDITY AND FINANCIAL CONDITION The Company’s condensed consolidated financial statements were previously prepared as a going concern, which contemplated continuity of operations through realization of assets, and the settling of liabilities in the normal course of business. With the acquisition of Vislink, substantial doubt has been remediated by increased revenues and a reduction of expenses which contributed to positive cash flow from operations for the period ended June 30, 2017. As reflected in the condensed consolidated financial statements, the Company had an accumulated deficit at June 30, 2017 of $ 202 11.3 The ability to recognize revenue and ultimately cash receipts is contingent upon, but not limited to, acceptable performance of the delivered equipment and services. If the Company is unable to close on some of its revenue producing opportunities in the near term, the carrying value its assets may be materially impacted. The condensed consolidated financial statements do not include any adjustments related to the recovery and classification of asset carrying amounts or the amount and classification of liabilities that might result should the Company be unable to continue as a going concern.

ACQUISITION OF VISLINK

ACQUISITION OF VISLINK	6 Months Ended
	Jun. 30, 2017
Business Combinations [Abstract]
Business Combination Disclosure [Text Block]	NOTE 3 — ACQUISITION OF VISLINK Acquisition of Vislink International Limited On February 2, 2017, the Company completed the acquisition of certain assets and liabilities related to the hardware segment of Vislink International Limited, an England and Wales registered limited company (the ‘‘UK Seller’’), and Vislink Inc., a Delaware corporation (the ‘‘US Seller’’, and together with the UK Seller, the ‘‘Sellers’’), pursuant to a Business Purchase Agreement, dated December 16, 2016, as amended on January 16, 2017, by and among the Company, the Sellers and Vislink PLC, an England and Wales registered limited company, as guarantor. The purchase price paid for the transaction was an aggregate of $16 million consisting of (i) $ 6.5 9.5 LIBOR plus 1.9% The fair value of the purchase consideration issued to the sellers of Vislink was allocated to the net tangible assets acquired. The Company accounted for the Vislink acquisition as the purchase of a business under GAAP under the acquisition method of accounting, and the assets and liabilities acquired were recorded as of the acquisition date, at their respective fair values and consolidated with those of the Company. The fair value of the net assets acquired was approximately $ 31.5 The Company utilized the services of an independent appraisal company to assist it in assessing the fair value of the assets and liabilities acquired. This assessment included an evaluation of the fair value of inventory, fixed assets and the fair value of the intangible assets acquired based upon the expected cash flows from the assets acquired. Additionally, the Company incorporated the carrying value of the remaining working capital as Vislink’s management represented that the carrying value of these assets and liabilities served as a reasonable proxy for fair value. The valuation process included discussion with management regarding the history and business operations of Vislink, a study of the economic and industry conditions in which Vislink competes and an analysis of the historical and projected financial statements and other records and documents. When it became apparent there was a potential for a bargain purchase gain, management reviewed the assets and liabilities acquired and the assumptions utilized in estimating their fair values. Further revisions to the estimates were not deemed necessary and after identifying and valuing all assets and liabilities of the business, the Company concluded that recording a bargain purchase gain was appropriate and required under GAAP. The Company then undertook a review to determine what factors might contribute to a bargain purchase and if it were reasonable for a bargain purchase to occur. Factors that contributed to the bargain purchase price were: ⋅ The transaction was completed with a motivated seller who had a public strategy to concentrate on growing their software business as opposed to their technology and hardware businesses. As a strategic decision, the seller intended to sell off the assets of the hardware business. ⋅ The announcement of Brexit led to a decline in the pound, which led to pressure by Vislink’s creditors to raise funds. The owners of Vislink were motivated to complete a transaction in order to use the proceeds to reduce the line of credit they owed to the bank. ⋅ The industry in 2015 and 2016 experienced a downturn as decreased spending combined with economic uncertainty caused corporations to delay wireless and broadcast infrastructure upgrades. The seller believed these trends would continue. According to IBISWorld, industry revenue is expected to fall at an annualized rate of 0.6 ⋅ Prior to Brexit, Vislink was under contract to be sold for a much higher price. The Company took advantage of the economic and industry downturn to negotiate a favorable price which was less than the value of the assets acquired for a total purchase consideration of $ 16 Based upon these factors, the Company concluded that the occurrence of a bargain purchase was reasonable. Purchase Consideration Amount of consideration: $ 16,000,000 Tangible assets acquired and liabilities assumed at fair value Accounts receivable $ 7,129,000 Inventories 18,234,000 Property and equipment 3,868,000 Prepaid expenses 1,209,000 Accounts payable (2,079,000) Accrued expenses (451,000) Net tangible assets acquired $ 27,910,000 Identifiable intangible assets Trade names and technology $ 1,100,000 Customer relationships 2,520,000 Total Identifiable Intangible Assets $ 3,620,000 Total net assets acquired $ 31,530,000 Consideration paid 16,000,000 Gain on bargain purchase $ 15,530,000 Three Months Ended Six Months Ended June 30, June 30, 2016 2017 2016 Revenues, net $ 14,520 $ 24,806 $ 28,426 Net (loss) allocable to common shareholders $ (6,572) $ (12,584) $ (12,344) Net (loss) per share $ (10.70) $ (1.20) $ (30.03) Weighted average number of shares outstanding 614 10,500 $ 411 The unaudited pro-forma results of operations are presented for information purposes only. The unaudited pro-forma results of operations are not intended to present actual results that would have been attained had the acquisitions been completed as of January 1, 2016 or to project potential operating results as of any future date or for any future periods. Since the closing of the transaction, the Company assumed $ 4.6 4.9 2 2.9 1.1 1.1 The estimated useful life remaining on the property and equipment acquired is 1 10 3 10

INTANGIBLE ASSETS

INTANGIBLE ASSETS	6 Months Ended
	Jun. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets Disclosure [Text Block]	NOTE 4 — INTANGIBLE ASSETS Software Development Trade Names & Costs Patents & Licenses Technology Customer Relationships Accumulated Accumulated Accumulated Accumulated Costs Amortization Costs Amortization Costs Amortization Costs Amortization Net Balance as of December 31, 2016 $ 18,647,000 $ (17,288,000) $ 12,378,000 $ (8,507,000) $ 350,000 $ (35,000) $ 360,000 $ (33,000) $ 5,872,000 Additions - - - - 1,100,000 - 2,520,000 - 3,620,000 Impairments - - - - - - - - - Amortization - (460,000) - (332,000) - (96,000) - (368,000) (1,256,000) Balance as of June 30, 2017 $ 18,647,000 $ (17,748,000) $ 12,378,000 $ (8,839,000) $ 1,450,000 $ (131,000) $ 2,880,000 $ (401,000) $ 8,236,000 Software Development Costs At June 30, 2017 and December 31, 2016, the Company has net software capitalized costs of $ 0.9 1.4 0.5 1.8 0.2 0.6 Patents & Licenses At June 30, 2017 and December 31, 2016, the Company has net capitalized patents and licenses of $ 3.5 3.9 18.5 20 0.3 0.2 Other Intangible Assets The Company’s remaining intangible assets include the trade names, technology and customer lists acquired in its acquisition of Vislink and IMT. The Company amortizes Trade Names, Technology and Customer Relationships over their useful lives which range between 3 15 Balance 2017 $ 1,344,000 2018 2,298,000 2019 1,763,000 2020 993,000 2021 817,000 Thereafter 1,021,000 $ 8,236,000

CONVERTIBLE NOTES PAYABLE

CONVERTIBLE NOTES PAYABLE	6 Months Ended
	Jun. 30, 2017
Debt Disclosure [Abstract]
Debt Disclosure [Text Block]	NOTE 5 — CONVERTIBLE NOTES PAYABLE Treco On October 6, 2011, the Company entered into a convertible promissory note (the “$ 2 2 35.00 9 132,000 24,397 90,000 which is also the fair value of the common stock on the issuance date. 45,000 90,000

DEBT ASSIGNMENT

DEBT ASSIGNMENT	6 Months Ended
	Jun. 30, 2017
Debt Disclosure [Abstract]
Short-term Debt [Text Block]	NOTE 6 — DEBT ASSIGNMENT On January 13, 2017, the Asset Purchase Modification Agreement dated April 16, 2016 (the “Modification Agreement”), with a total obligation $ 1,038,000 312,000 9 1,472,000 122,000 In determining the appropriate accounting for the foregoing debt exchange, the Company considered many elements of the transaction, including whether or not the exchange resulted in a debt modification or extinguishment; the resulting accounting for transaction costs; the derecognition of the extinguished debt and finally, the appropriate recording of the newly issued debt instrument. The Company referred to the guidance in ASC 470-50-40-10 which indicates that from the debtor's perspective, an exchange of debt instruments between or a modification of a debt instrument by a debtor and a creditor in a non-troubled debt situation is deemed to have been accomplished with debt instruments that are substantially different if the present value of the cash flows under the terms of the new debt instrument is at least ten percent different from the present value of the remaining cash flows under the terms of the original instrument. It is also noted in the literature that transactions between or among creditors do not result in a modification or exchange of the original debt instrument between the debtor and creditor. Accordingly, those transactions do not affect the accounting by the debtor, the carrying amount of the new note is not adjusted and the effects of the changes are to be reflected in future periods. Series D Convertible Preferred Stock Leak-Out Agreement On February 2, 2017, the New Holders agreed that any sales of common stock underlying the Series D Convertible Preferred Stock (the “Series D Preferred Stock”) would not, in the aggregate, exceed 2.75% of that day’s dollar volume of our common stock traded, provided that the New Holders shall be entitled to sell no less than an aggregate of $27,500 each trading day. During the six months ended June 30, 2017, the Company issued 5,000,000 416,667 648,000 824,000 434,000 0

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Contingencies Disclosure [Text Block]	NOTE 7 — COMMITMENTS AND CONTINGENCIES Leases The Company's office rental, deployment sites and warehouse facility expenses equaled in aggregate approximately $ 350,000 171,000 553,000 330,000 2017 through 2023 In connection with the acquisition of IMT, the Company assumed the lease obligations relating to IMT’s warehouse and office space in Mt. Olive, NJ. Payments under the Mt. Olive, NJ lease are $ 35,000 April 29, 2020 253,000 43,000 In connection with the acquisition of Vislink, the Company assumed the lease obligations relating to Vislink office space in Colchester, U.K. which runs through March 2020. Future payments under such lease will amount to approximately $ 2,020,000 337,000 The Company signed a new lease for office space in Hemel, U.K. in May 2017 which runs through April 2023. Future payments under such lease will amount to approximately $ 794,000 43,000 Amount Balance 2017 $ 608,000 2018 1,091,000 2019 971,000 2020 509,000 2021 141,000 Thereafter 188,000 $ 3,508,000 Legal The Company is subject, from time to time, to claims by third parties under various legal theories. The defense of such claims, or any adverse outcome relating to any such claims, could have a material adverse effect on the Company’s liquidity, financial condition and cash flows. For the six months ended June 30, 2017 the Company did not have any material legal actions pending.

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	6 Months Ended
	Jun. 30, 2017
Equity [Abstract]
Stockholders Equity Note Disclosure [Text Block]	NOTE 8 — STOCKHOLDERS’ EQUITY Lincoln Park Purchase Agreement On May 19, 2017, the Company entered into a purchase agreement (the “Lincoln Park Purchase Agreement”) and a registration rights agreement (the “Registration Rights Agreement”) with Lincoln Park Capital Fund, LLC, an Illinois limited liability company (“Lincoln Park”). Under the terms and subject to the conditions of the Lincoln Park Purchase Agreement, the Company has the right to sell to Lincoln Park, and Lincoln Park is obligated to purchase, up to $ 15,000,000 Pursuant to the Lincoln Park Purchase Agreement, the Company may, at its sole discretion and subject to certain conditions, direct Lincoln Park to purchase up to 125,000 1,000,000 In connection with its 2017 Annual Meeting of Stockholders held on June 15, 2017, the Company did not receive stockholder approval, as required pursuant to Nasdaq Marketplace Rule 5635(d), to issue shares of Common Stock under the Lincoln Park Purchase Agreement in an amount equal to 20 As of June 30, 2017, the Company has not sold any shares of Common Stock under the Lincoln Park Purchase Agreement. February 2017 Financing On February 14, 2017, the Company completed a public underwritten offering of 1,750,000 1,312,500 2.00 3,500,000 Conversions of Warrants From January 1, 2017 to June 30, 2017, 794,400 794,400 1,589 Other Common Stock Issuances During the six months ended June 30, 2017, the Company issued: ⋅ 853,503 1,426,000 ⋅ 416,667 648,000 5,000,000 ⋅ 104,218 295,000 ⋅ 24,397 2 number of shares of common stock issued was based upon the stated interest rate of the convertible promissory note and was determined by using the fair value of the common stock on the issuance date. ⋅ 71,526 Warrants and Options During the three and six months ended June 30, 2017, the Company recorded approximately $ 438 603 82 182 On February 16, 2017, the Board of Directors approved a motion to cancel all outstanding stock options as the options were all out of the money in all previous stock option plans, thereby cancelling the 1,844 On March 16, 2017, the Board of Directors passed a motion to grant options to certain directors, employees and advisors of the Company and the Company issued 3,555,500 1.55 1.90 0 286.51 6.00 9.74 0 0.08 0 4.7 2.74 Warrants Number of Warrants Weighted Average (in Shares) Exercise Price Outstanding January 1, 2017 7,611,904 $ 5.98 Granted 1,365,000 2.02 Exercised (794,400) 2.00 Forfeited or Expired (7) 42,000.00 Outstanding, June 30, 2017 8,182,497 $ 5.67 Exercisable, June 30, 2017 8,032,497 $ 5.73 Options Number of Options (in Shares) Weighted Average Exercise Price Outstanding January 1, 2017 1,844 $ 1,544.37 Granted 3,555,500 1.55 Exercised — — Cancelled (1,844) 1,544.37 Outstanding, June 30, 2017 3,555,500 $ 1.55 Exercisable, June 30, 2017 — $ —

DERIVATIVE LIABILITIES

DERIVATIVE LIABILITIES	6 Months Ended
	Jun. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments and Hedging Activities Disclosure [Text Block]	NOTE 9 — DERIVATIVE LIABILITIES Each of the warrants issued in connection with our August 2015, May 2016 and July 2016 underwritten offerings and the February 2016 Series B Preferred Stock Offering have been accounted for as derivative liabilities, as each of the warrants contain a net cash settlement provision whereby, upon certain fundamental events, the holders could put the warrants back to the Company for cash. Number of shares underlying the warrants on June 30, 2017 977,751 Fair market value of stock $ 1.63 Exercise price $ 2.00 to 2,400.00 Volatility 169% to 184 % Risk-free interest rate 1.24% to 1.89 % Expected dividend yield — Warrant life (years) 1.3 to 4.1 Level 3 liabilities are valued using unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the liabilities. For fair value measurements categorized within Level 3 of the fair value hierarchy, the Company’s accounting and finance department, who report to the Chief Financial Officer, determine its valuation policies and procedures. The development and determination of the unobservable inputs for Level 3 fair value measurements and fair value calculations are the responsibility of the Company’s accounting and finance department and are approved by the Chief Financial Officer. Level 3 Valuation Techniques: Level 3 financial liabilities consist of the derivative liabilities for which there is no current market for these securities such that the determination of fair value requires significant judgment or estimation. Changes in fair value measurements categorized within Level 3 of the fair value hierarchy are analyzed each period based on changes in estimates or assumptions and recorded as appropriate. The Company deems financial instruments which do not have fixed settlement provisions to be derivative instruments. In accordance with ASC Topic 480, Distinguishing Liabilities from Equity The Company’s derivative liabilities are carried at fair value and are classified as Level 3 in the fair value hierarchy due to the use of significant unobservable inputs. In order to calculate fair value, the Company uses a binomial model style simulation, as the value of certain features of the warrant derivative liabilities would not be captured by the standard Black-Scholes model. Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Beginning balance $ 1,400,000 $ 938,000 $ 1,183,000 $ 1,284,000 Recognition of warrant liabilities on issuance dates — 826,000 — 1,057,000 Reclassification to stockholders’ equity upon exercise — (2,315,000) — (2,379,000) Change in fair value of derivative liabilities (27,000) 1,773,000 190,000 1,260,000 Ending balance $ 1,373,000 $ 1,222,000 $ 1,373,000 $ 1,222,000

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	6 Months Ended
	Jun. 30, 2017
Related Party Transactions [Abstract]
Related Party Transactions Disclosure [Text Block]	NOTE 10 — RELATED PARTY TRANSACTIONS MB Technology Holdings, LLC On April 29, 2014, the Company entered into a management agreement (the “Management Agreement”) with MB Technology Holdings, LLC (“MBTH”), pursuant to which MBTH agreed to provide certain management and financial services to the Company for a monthly fee of $ 25,000 75,000 150,000 27,000 Condensed Consolidated Statement of Operations. The Company has agreed to award MBTH a 3 436,000 The balance outstanding to MBTH at June 30, 2017 and December 31, 2016 was $ 1,633,000 96,000 On March 3, 2016, our Board of Directors approved the issuance of up to $ 300,000 150,000 150,000 150,000 150,000 On November 29, 2016, the Company and MBTH entered into an acquisition services agreement (the ‘‘M&A Services Agreement’’) pursuant to which the Company engaged MBTH to provide services in connection with merger and acquisition searches, negotiating and structuring deal terms and other related services. The M&A Services Agreement incorporates by reference the terms of the Management Agreement, as well as the Company’s agreement with MBTH on January 12, 2013 to pay MBTH a 3 (1) The Company will pay MBTH an acquisition fee equal to the greater of $ 250,000 8 (2) In addition to any other fees, the Company will pay MBTH a due diligence fee of $ 250,000 This due diligence fee shall be paid to MBTH as warrants to purchase shares of common stock of the Company in an amount equal to $250,000 divided by the lower of the market price of the common stock on the day of closing of the transaction or the price of equity offered to finance such acquisition. 0.01 (3) The Company and MBTH agreed to waive the 3 3 1 (4) In the event the Company engages an independent, external advisor to value an acquisition and the valuation is higher than the price negotiated by MBTH on behalf of the Company, then MBTH will receive an additional fee of 5 (5) MBTH has the option to convert up to 50 110 25 (6) If MBTH’s services assist the Company in achieving forward sales of at least $ 50 25 (the “Block Purchase Option”) 125 On February 16, 2017, the Board of Directors amended the terms of the Block Purchase Option in the M&A Services Agreement to allow MBTH the option to acquire 25 of common stock 2.10 There has been no impact on the results from operations since the certainty of the performance condition is not known The M&A Services Agreement is effective as of November 1, 2016, and will automatically renew annually, unless earlier terminated by the Company or MBTH upon thirty (30) days’ written notice. The Company accrued an additional $ 1,480,000 8 The Company accrued an additional $ 777,000 777,000 5 15,530,000 The Company recorded $ 265,000 From January 1, 2017 to June 30, 2017, the Company issued 71,526 120,000

CONCENTRATIONS

CONCENTRATIONS	6 Months Ended
	Jun. 30, 2017
Risks and Uncertainties [Abstract]
Concentration Risk Disclosure [Text Block]	NOTE 11 — CONCENTRATIONS During the three and six months ended June 30, 2017, the Company recorded revenue from individual sales or services rendered of $ 2,428,000 17 2,944,000 13 10 During the six months ended June 30, 2016, the Company recorded revenue from individual sales or services rendered of $ 325,000 13 10 200,000 12 189,000 11 10 At June 30, 2017, approximately 19 2,023,000 At June 30, 2016, approximately 56 232,000 20 189,000 16 117,000 10 115,000 10 During the three and six months ended June 30, 2017, approximately 11 11 During the three and six months ended June 30, 2016, approximately 33 32

GEOGRAPHICAL INFORMATION

GEOGRAPHICAL INFORMATION	6 Months Ended
	Jun. 30, 2017
Segment Reporting [Abstract]
Segment Reporting Disclosure [Text Block]	NOTE 12 – GEOGRAPHICAL INFORMATION Six Months Ended Three Months Ended June 30, 2017 June 30, 2017 Revenue: North America $ 7,674,000 $ 5,808,000 South America 3,111,000 2,452,000 Europe 7,032,000 3,130,000 Asia/ROW 5,736,000 2,828,000 $ 23,553,000 $ 14,218,000 Six Months Ended June 30, 2017 Long-Lived Assets: United States $ 6,911,000 United Kingdom 5,497,000 $ 12,408,000

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2017
Subsequent Events [Abstract]
Subsequent Events [Text Block]	NOTE 13 — SUBSEQUENT EVENTS Conversions of Warrants From July 1, 2017 to August 14, 2017, 255,625 255,625 Treco Issuance From July 1, 2017 to August 14, 2017, the Company issued a total of 60,403 90,000 2 Other Common Stock Issuances From July 1, 2017 to August 14, 2017, the Company issued a total of 290,096 567,000 From July 1, 2017 to August 14, 2017, the Company issued a total of 8,512 20,000

ORGANIZATION AND SUMMARY OF S19

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2017
Accounting Policies [Abstract]
Description of Business [Policy Text Block]	Description of Business The overarching strategy of xG Technology, Inc. (“xG”, or the “Company”) is to design, develop and deliver advanced wireless communications solutions that provide customers in our target markets with enhanced levels of reliability, mobility, performance and efficiency in their business operations and missions. xG’s business lines include the brands of Integrated Microwave Technologies LLC (“IMT”), Vislink Communication Systems (“Vislink”, or “VCS”), and xMax. There is considerable brand interaction, owing to complementary market focus, compatible product and technology development roadmaps, and solution integration opportunities. In addition to these brands, xG has a dedicated Federal Sector Group focused on providing next-generation spectrum sharing solutions to national defense, scientific research and other federal organizations. IMT: On January 29, 2016, xG completed the acquisition of the net assets that constituted the business of IMT, pursuant to an Asset Purchase Agreement by and between xG and Skyview Capital, LLC. The IMT business develops, manufactures and sells microwave communications equipment utilizing COFDM (Coded Orthogonal Frequency Division Multiplexing) technology. COFDM is a transmission technique that combines encoding technology with OFDM (Orthogonal Frequency Division Multiplexing) modulation to provide the low latency and high image clarity required for real-time live broadcasting video transmissions. IMT has extensive experience in ultra-compact COFDM wireless technology, and this has allowed IMT to develop integrated solutions over the past 20 years that deliver reliable video footage captured from both aerial and ground-based sources to fixed and mobile receiver locations. Vislink: On February 2, 2017, the Company completed the acquisition of certain assets and liabilities related to the hardware segment of Vislink International Limited, an England and Wales registered limited company (the ‘‘UK Seller’’), and Vislink Inc., a Delaware corporation (the ‘‘US Seller’’, and together with the UK Seller, the ‘‘Sellers’’), pursuant to a Business Purchase Agreement, dated December 16, 2016, as amended on January 16, 2017, by and among the Company, the Sellers and Vislink PLC, an England and Wales registered limited company, as guarantor. The Company refers to the hardware segment acquired as Vislink Communications Systems (‘‘VCS’’). VCS specializes in the wireless capture, delivery and management of secure, high-quality, live video from the field to the point of usage. VCS designs and manufactures products encompassing microwave radio components, satellite communication, cellular and wireless camera systems, and associated amplifier items. VCS serves two core markets: broadcast and media and public safety and surveillance. In the broadcast and media market, VCS provides broadcast communication links for the collection of live news, sports and entertainment events. VCS’ customers in the broadcast and media market include national broadcasters, multi-channel broadcasters, network owners and station groups, sports and live broadcasters and hosted service providers. In the public safety and surveillance market, VCS provides secure video communications and mission-critical solutions for law enforcement, defense and homeland security applications. VCS’ customers in the public safety and surveillance market include metropolitan, regional and national law enforcement agencies as well as domestic and international defense agencies and organizations.
Basis of Accounting, Policy [Policy Text Block]	Basis of Presentation The accompanying unaudited condensed consolidated financial statements were prepared using generally accepted accounting principles for interim financial information and the instructions to Form 10-Q and Regulation S-X. Accordingly, these financial statements do not include all information or notes required by generally accepted accounting principles for annual financial statements and should be read in conjunction with the consolidated financial statements as filed on the Company's Annual Report on Form 10-K for the year ended December 31, 2016, as amended. In the opinion of management, the unaudited condensed consolidated financial statements included herein contain all adjustments necessary to present fairly the Company's financial position as of June 30, 2017, the results of its operations for the three and six months ended June 30, 2017 and 2016, the results of its cash flows for the six months ended June 30, 2017 and 2016. Such adjustments are of a normal recurring nature. The results of operations for the three and six months ended June 30, 2017 may not be indicative of results for the year ended December 31, 2017
Consolidation, Policy [Policy Text Block]	Principles of Consolidation The condensed consolidated financial statements which have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) include the accounts of xG and its wholly-owned subsidiaries, IMT and Vislink, since the date the acquisition of IMT and Vislink were completed. All intercompany transactions and balances have been eliminated in the consolidation.
Segment Reporting, Policy [Policy Text Block]	Segment Reporting Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the operating decision makers, or decision-making group, in making decisions on how to allocate resources and assess performance. The Company’s decision-making group is the senior executive management team. The Company and the decision-making group view the Company’s operations and manage its business as one operating segment. All long-lived assets of the Company reside in the U.S. and U.K.
Employee Stock Ownership Plan (ESOP), Policy [Policy Text Block]	Stock Options The Company accounts for stock-based compensation in accordance with Accounting Standards Codification (“ASC”) 718, Compensation—Stock Compensation, which requires the measurement and recognition of compensation expense for all stock-based payment awards made to employees and non-employee directors, including employee stock options. Compensation expense based on the grant date fair value is generally amortized over the requisite service period of the award on a straight-line basis. The fair value of options is calculated using the Black-Scholes option pricing model to determine the fair value of stock options on the date of grant based on key assumptions such as stock price, expected volatility and expected term. The Company’s estimates of these assumptions are primarily based on historical data, judgment regarding future trends and factors.
Use of Estimates, Policy [Policy Text Block]	Use of Estimates Management makes estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates and assumptions include reserves and write-downs related to receivables and inventories, the recoverability of long-lived assets, the valuation allowance relating to the Company’s deferred tax assets, valuation of equity and derivative instruments, and debt discounts and the valuation of the assets and liabilities acquired in the acquisitions of IMT and Vislink.
Revenue Recognition, Policy [Policy Text Block]	Revenue Recognition The Company recognizes revenues when persuasive evidence of an arrangement exists, services have been rendered, the price is fixed and determinable, and collectability is reasonably assured. Revenues from management and consulting, time-and-materials service contracts, maintenance agreements and other services are recognized as the services are provided or at the time the goods are shipped and title has passed.
Earnings Per Share, Policy [Policy Text Block]	The Company reports earnings per share in accordance with ASC Topic 260, “Earnings Per Share,” which establishes standards for computing and presenting earnings per share. Basic earnings per share is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income available to common shareholders by the weighted-average number of common shares and dilutive common share equivalents then outstanding. For the three and six month period ended June 30, 2017, potential common share equivalents consist of 8,182,497 3,555,500 shares were excluded for the three and six months ended June 30, 2017 since they had an anti-dilutive effect. The common stock warrants were excluded as they were out of the money and had an anti-dilutive effect. There were no such participating securities outstanding during the six-month period ended June 30, 2016
Fair Value of Financial Instruments, Policy [Policy Text Block]	Fair Value of Financial Instruments GAAP requires disclosing the fair value of financial instruments to the extent practicable for financial instruments which are recognized or unrecognized in the balance sheet. The fair value of the financial instruments disclosed herein is not necessarily representative of the amount that could be realized or settled, nor does the fair value amount consider the tax consequences of realization or settlement. In assessing the fair value of financial instruments, the Company uses a variety of methods and assumptions, which are based on estimates of market conditions and risks existing at the time. For certain instruments, including accounts receivable, accounts payable, and accrued expenses, the Company estimated that the carrying amount approximated fair value because of the short maturities of these instruments. All debt is based on current rates at which the Company could borrow funds with similar remaining maturities and approximates fair value. GAAP establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use on unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is described below: Level 1 – Quoted prices in active markets for identical assets or liabilities. Level 2 – Observable prices that are based on inputs not quoted on active markets, but corroborated by market data. Level 3 – Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs.
Foreign Currency Transactions and Translations Policy [Policy Text Block]	The functional currency of our foreign subsidiaries is typically the applicable local currency. The translation from the respective foreign currencies to United States Dollars (U.S. Dollars) is performed for balance sheet accounts using current exchange rates in effect at the balance sheet date and for income statement accounts using a weighted average exchange rate during the period. Gains or losses resulting from such translation are included as a separate component of accumulated other comprehensive income. Gains or losses resulting from foreign currency transactions are included in foreign currency income or loss except for the effect of exchange rates on long-term inter-company transactions considered to be a long-term investment, which are accumulated and credited or charged to other comprehensive income. Transaction gains and losses are recognized in the Company’s results of operations based on the difference between the foreign exchange rates on the transaction date and on the reporting date. The Company recognized a net foreign exchange loss of approximately $ 158,000 238,000 365,000 348,000 The exchange rate adopted for the foreign exchange transactions are the rates of exchange as quoted on OANDA, a Canadian-based foreign exchange company providing currency conversion, online retail foreign exchange trading, online foreign currency transfers, forex information and website. Translation of amounts from British Pounds into U.S. Dollars was made at the following exchange rates for the respective periods: · As of June 30, 2017 – British Pounds $ 1.30017 1.00 · For the six months ended June 30, 2017 – British Pounds $ 1.24675 1.00
Subsequent Events, Policy [Policy Text Block]	Subsequent Events Management has evaluated subsequent events or transactions occurring through the date the condensed consolidated financial statements were issued and determined that no events or transactions are required to be disclosed herein, except as disclosed.
New Accounting Pronouncements, Policy [Policy Text Block]	The Company has considered additional new relevant accounting pronouncements that are in effect through the date of these financial statements. These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on our financial position or results of operations In July 2017, FASB issued ASU No. 2017-11, Earnings per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480), Derivatives and Hedging (Topic 815). ASU 2017-11 consists of two parts. The amendments in Part I of this Update change the classification analysis of certain equity-linked financial instruments (or embedded features) with down round features. When determining whether certain financial instruments should be classified as liabilities or equity instruments, a down round feature no longer precludes equity classification when assessing whether the instrument is indexed to an entity’s own stock. The amendments also clarify existing disclosure requirements for equity-classified instruments. As a result, a freestanding equity-linked financial instrument (or embedded conversion option) no longer would be accounted for as a derivative liability at fair value as a result of the existence of a down round feature. For freestanding equity classified financial instruments, the amendments require entities that present earnings per share (EPS) in accordance with Topic 260 to recognize the effect of the down round feature when it is triggered. That effect is treated as a dividend and as a reduction of income available to common shareholders in basic EPS. Convertible instruments with embedded conversion options that have down round features are now subject to the specialized guidance for contingent beneficial conversion features (in Subtopic 470-20, Debt—Debt with Conversion and Other Options), including related EPS guidance (in Topic 260). The amendments in Part II of this Update re-characterize the indefinite deferral of certain provisions of Topic 480 that now are presented as pending content in the Codification, to a scope exception. Those amendments do not have an accounting effect. For public business entities, the amendments in Part I of this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. For all other entities, the amendments in Part I of this Update are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted for all entities, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The amendments in Part II of this Update do not require any transition guidance because those amendments do not have an accounting effect. Management is currently assessing the applicability of ASU 2017-11 and has not determined the impact of the adoption, if any, as of June 30, 2017. On May 10, 2017, the FASB issued ASU 2017-09, Scope of Modification Accounting Both ASU 2014-09 and ASU 2017-05 will be effective for public entities for annual and interim reporting periods beginning after December 15, 2017 and early adoption is permitted in periods ending after December 15, 2016. ASU 2014-09 and ASU 2017-05 allow for either full or modified retrospective ("cumulative effect") adoption. Both standards must be adopted concurrently. We are currently evaluating the potential impact of adopting both ASU 2014-09 and ASU 2017-05 and the impact this guidance will have on our consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers ASU 2014-09 also created guidance governing the sale of non-financial assets with customers and non-customers with the only difference in the treatment of these transactions being presentation in the statement of operations (revenue and expense is reported when the sale is to a customer and net gain or loss is reported when the sale is to a non-customer). Based on the nature of our business, we believe that our property sales represent transactions with non-customers.

ACQUISITION OF VISLINK (Tables)

ACQUISITION OF VISLINK (Tables)	6 Months Ended
	Jun. 30, 2017
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]	Purchase Consideration Amount of consideration: $ 16,000,000 Tangible assets acquired and liabilities assumed at fair value Accounts receivable $ 7,129,000 Inventories 18,234,000 Property and equipment 3,868,000 Prepaid expenses 1,209,000 Accounts payable (2,079,000) Accrued expenses (451,000) Net tangible assets acquired $ 27,910,000 Identifiable intangible assets Trade names and technology $ 1,100,000 Customer relationships 2,520,000 Total Identifiable Intangible Assets $ 3,620,000 Total net assets acquired $ 31,530,000 Consideration paid 16,000,000 Gain on bargain purchase $ 15,530,000
Business Acquisition, Pro Forma Information [Table Text Block]	The following presents the unaudited pro-forma combined results of operations of xG with Vislink and IMT as if the entities were combined on January 1, 2016. Three Months Ended Six Months Ended June 30, June 30, 2016 2017 2016 Revenues, net $ 14,520 $ 24,806 $ 28,426 Net (loss) allocable to common shareholders $ (6,572) $ (12,584) $ (12,344) Net (loss) per share $ (10.70) $ (1.20) $ (30.03) Weighted average number of shares outstanding 614 10,500 $ 411

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	6 Months Ended
	Jun. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Finite-Lived Intangible Assets [Table Text Block]	Intangible assets consist of the following: Software Development Trade Names & Costs Patents & Licenses Technology Customer Relationships Accumulated Accumulated Accumulated Accumulated Costs Amortization Costs Amortization Costs Amortization Costs Amortization Net Balance as of December 31, 2016 $ 18,647,000 $ (17,288,000) $ 12,378,000 $ (8,507,000) $ 350,000 $ (35,000) $ 360,000 $ (33,000) $ 5,872,000 Additions - - - - 1,100,000 - 2,520,000 - 3,620,000 Impairments - - - - - - - - - Amortization - (460,000) - (332,000) - (96,000) - (368,000) (1,256,000) Balance as of June 30, 2017 $ 18,647,000 $ (17,748,000) $ 12,378,000 $ (8,839,000) $ 1,450,000 $ (131,000) $ 2,880,000 $ (401,000) $ 8,236,000
Finite-lived Intangible Assets Amortization Expense [Table Text Block]	Estimated amortization expense for total intangible assets for the succeeding five years is as follows: Balance 2017 $ 1,344,000 2018 2,298,000 2019 1,763,000 2020 993,000 2021 817,000 Thereafter 1,021,000 $ 8,236,000

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	6 Months Ended
	Jun. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]	Total obligation under minimum future annual rentals, exclusive of real estate taxes and related costs, are approximately as follows: Amount Balance 2017 $ 608,000 2018 1,091,000 2019 971,000 2020 509,000 2021 141,000 Thereafter 188,000 $ 3,508,000

STOCKHOLDERS' EQUITY (Tables)

STOCKHOLDERS' EQUITY (Tables)	6 Months Ended
	Jun. 30, 2017
Class of Warrant or Right [Line Items]
Schedule of Share-based Compensation, Activity [Table Text Block]	A summary of the Company’s warrant and option activity is as follows: Warrants Number of Warrants Weighted Average (in Shares) Exercise Price Outstanding January 1, 2017 7,611,904 $ 5.98 Granted 1,365,000 2.02 Exercised (794,400) 2.00 Forfeited or Expired (7) 42,000.00 Outstanding, June 30, 2017 8,182,497 $ 5.67 Exercisable, June 30, 2017 8,032,497 $ 5.73 Options Number of Options (in Shares) Weighted Average Exercise Price Outstanding January 1, 2017 1,844 $ 1,544.37 Granted 3,555,500 1.55 Exercised — — Cancelled (1,844) 1,544.37 Outstanding, June 30, 2017 3,555,500 $ 1.55 Exercisable, June 30, 2017 — $ —

DERIVATIVE LIABILITIES (Tables)

DERIVATIVE LIABILITIES (Tables)	6 Months Ended
	Jun. 30, 2017
DERIVATIVE LIABILITY [Line Items]
Schedule of Derivative Liabilities at Fair Value [Table Text Block]	The following are the key assumptions used in connection with the valuation of the warrants exercisable into common stock on June 30, 2017: Number of shares underlying the warrants on June 30, 2017 977,751 Fair market value of stock $ 1.63 Exercise price $ 2.00 to 2,400.00 Volatility 169% to 184 % Risk-free interest rate 1.24% to 1.89 % Expected dividend yield — Warrant life (years) 1.3 to 4.1
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]	The following table sets forth a summary of the changes in the fair value of our Level 3 financial liabilities that are measured at fair value on a recurring basis: Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Beginning balance $ 1,400,000 $ 938,000 $ 1,183,000 $ 1,284,000 Recognition of warrant liabilities on issuance dates — 826,000 — 1,057,000 Reclassification to stockholders’ equity upon exercise — (2,315,000) — (2,379,000) Change in fair value of derivative liabilities (27,000) 1,773,000 190,000 1,260,000 Ending balance $ 1,373,000 $ 1,222,000 $ 1,373,000 $ 1,222,000

GEOGRAPHICAL INFORMATION (Table

GEOGRAPHICAL INFORMATION (Tables)	6 Months Ended
	Jun. 30, 2017
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment [Table Text Block]	Six Months Ended Three Months Ended June 30, 2017 June 30, 2017 Revenue: North America $ 7,674,000 $ 5,808,000 South America 3,111,000 2,452,000 Europe 7,032,000 3,130,000 Asia/ROW 5,736,000 2,828,000 $ 23,553,000 $ 14,218,000 Six Months Ended June 30, 2017 Long-Lived Assets: United States $ 6,911,000 United Kingdom 5,497,000 $ 12,408,000

ORGANIZATION AND SUMMARY OF S26

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual)	3 Months Ended	6 Months Ended
	Jun. 30, 2017USD ($)shares	Jun. 30, 2017USD ($)shares	Dec. 31, 2016shares
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | shares		8,182,497
Foreign Currency Transaction Gain (Loss), Realized | $	$ 158,000	$ 238,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance | shares	3,555,500	3,555,500	1,844
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Parent | $	$ 365,000	$ 348,000
United States of America, Dollars
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Foreign Currency Exchange Rate, Translation	1	1
Foreign Currency Exchange Rate, Remeasurement	1	1
United Kingdom, Pounds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Foreign Currency Exchange Rate, Translation	1.30017	1.30017
Foreign Currency Exchange Rate, Remeasurement	1.24675	1.24675

LIQUIDITY AND FINANCIAL CONDI27

LIQUIDITY AND FINANCIAL CONDITION (Details Textual) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
LIQUIDITY AND FINANCIAL CONDITION [Line Items]
Retained Earnings (Accumulated Deficit)	$ (202,048)		$ (202,048)		$ (209,299)
Operating Income (Loss), Total	$ (5,549)	$ (4,632)	$ (11,295)	$ (9,248)

ACQUISITION OF VISLINK (Details

ACQUISITION OF VISLINK (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Purchase Consideration
Amount of consideration:			$ 16,000	$ 3,000
Assets acquired and liabilities assumed at preliminary fair value
Accounts receivable	$ 7,129	$ 676	7,129	676
Inventories	18,234	3,329	18,234	3,329
Property and equipment	3,868	1,470	3,868	1,470
Prepaid expenses	1,209	55	1,209	55
Accounts payable	(2,079,000)		(2,079,000)
Accrued expenses	(451)	(378)	(451)	(378)
Net tangible assets acquired	27,910	5,039	27,910	5,039
Identifiable intangible assets
Total Identifiable Intangible Assets	3,620	710	3,620	710
Total net assets acquired	31,530	5,749	31,530	5,749
Consideration paid			16,000	3,000
Gain on bargain purchase	3,691	2,237	15,530	2,749
Trademarks and Trade Names [Member]
Identifiable intangible assets
Total Identifiable Intangible Assets	1,100,000		1,100,000
Customer Relationships [Member]
Identifiable intangible assets
Total Identifiable Intangible Assets	$ 2,520	$ 360	$ 2,520	$ 360

ACQUISITION OF VISLINK (Detai29

ACQUISITION OF VISLINK (Details 1) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Business Acquisition Pro Forma Information [Line Items]
Revenues, net	$ 14,520	$ 24,806	$ 28,426
Net (loss) allocable to common shareholders	$ (6,572)	$ (12,584)	$ (12,344)
Net (loss) per share	$ (10.70)	$ (1.20)	$ (30.03)
Weighted average number of shares outstanding	614	10,500	411

ACQUISITION OF VISLINK (Detai30

ACQUISITION OF VISLINK (Details Textual) - USD ($) $ in Thousands	Feb. 02, 2017	Mar. 17, 2017	Feb. 02, 2017	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other				$ 451	$ 378	$ 451	$ 378
Repayments of Notes Payable						2,000	0
Gain (Loss) on Extinguishment of Debt	$ 1,100			$ 1,090	$ 0	$ 3,990	$ 0
Proceeds from Customers	1,100
Vislink Communication Systems [Member]
Business Acquisition [Line Items]
Notes Payable	4,900		$ 4,900
Payments to Acquire Businesses, Gross	16,000		6,500
Business Combination, Consideration Transferred, Liabilities Incurred			$ 9,500
Debt Instrument, Description of Variable Rate Basis			LIBOR plus 1.9%
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets	31,500		$ 31,500
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other	$ 4,600		$ 4,600
Repayments of Notes Payable		$ 2,000
Extinguishment of Debt, Amount		$ 2,900
Revenue Reduction Annualized Rate	0.60%
Vislink Communication Systems [Member] | Minimum [Member]
Business Acquisition [Line Items]
Property, Plant and Equipment, Useful Life						1 year
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life						3 years
Vislink Communication Systems [Member] | Maximum [Member]
Business Acquisition [Line Items]
Property, Plant and Equipment, Useful Life						10 years
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life						10 years

INTANGIBLE ASSETS (Details)

INTANGIBLE ASSETS (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Finite-Lived Intangible Assets [Line Items]
Balance Beginning			$ 5,872,000
Additions			3,620,000
Impairments			0
Amortization			(1,256,000)
Balance Ending	$ 8,236,000		8,236,000
Patents And Licenses [Member]
Finite-Lived Intangible Assets [Line Items]
Balance Beginning, Cost			12,378,000
Balance Beginning, A.A.			(8,507,000)
Additions			0
Impairments			0
Amortization	(200,000)	$ (200,000)	(332,000)	$ (300,000)
Balance Ending, Cost	12,378,000		12,378,000
Balance Ending, A.A.	(8,839,000)		(8,839,000)
Technology-Based Intangible Assets [Member]
Finite-Lived Intangible Assets [Line Items]
Balance Beginning, Cost			350,000
Balance Beginning, A.A.			(35,000)
Additions			1,100,000
Impairments			0
Amortization			(96,000)
Balance Ending, Cost	1,450,000		1,450,000
Balance Ending, A.A.	(131,000)		(131,000)
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Balance Beginning, Cost			360,000
Balance Beginning, A.A.			(33,000)
Additions			2,520,000
Impairments			0
Amortization			(368,000)
Balance Ending, Cost	2,880,000		2,880,000
Balance Ending, A.A.	(401,000)		(401,000)
Software Development [Member]
Finite-Lived Intangible Assets [Line Items]
Balance Beginning, Cost			18,647,000
Balance Beginning, A.A.			(17,288,000)
Additions			0
Impairments			0
Amortization	(200,000)	$ (600,000)	(460,000)	$ (1,800,000)
Balance Ending, Cost	18,647,000		18,647,000
Balance Ending, A.A.	$ (17,748,000)		$ (17,748,000)

INTANGIBLE ASSETS (Details 1)

INTANGIBLE ASSETS (Details 1)	Jun. 30, 2017USD ($)
Finite-Lived Intangible Assets [Line Items]
Balance 2,017	$ 1,344,000
2,018	2,298,000
2,019	1,763,000
2,020	993,000
2,021	817,000
Thereafter	1,021,000
Finite-Lived Intangible Assets, Net, Total	$ 8,236,000

INTANGIBLE ASSETS (Details Text

INTANGIBLE ASSETS (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Finite-Lived Intangible Assets [Line Items]
Amortization of Intangible Assets			$ 1,256,000
Minimum [Member] | Trade Names [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life			3 years
Maximum [Member] | Trade Names [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life			15 years
Patents And Licenses [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible Assets, Gross (Excluding Goodwill), Total	$ 12,378,000		$ 12,378,000		$ 12,378,000
Amortization of Intangible Assets	200,000	$ 200,000	$ 332,000	$ 300,000
Patents And Licenses [Member] | Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life			18 years 6 months
Patents And Licenses [Member] | Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life			20 years
Software Development [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible Assets, Gross (Excluding Goodwill), Total	18,647,000		$ 18,647,000		$ 18,647,000
Amortization of Intangible Assets	$ 200,000	$ 600,000	$ 460,000	$ 1,800,000

CONVERTIBLE NOTES PAYABLE (Deta

CONVERTIBLE NOTES PAYABLE (Details Textual) - USD ($)	Jan. 10, 2017	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Oct. 06, 2011
Debt Instrument [Line Items]
Debt Instrument, Face Amount		$ 2,000,000		$ 2,000,000
Treco International, S.A [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage						9.00%
Accrued Interest And Fees		132,000		132,000
Long-term Debt, Gross						$ 2,000,000
Debt Instrument, Convertible, Conversion Price						$ 35
Treco International, S.A [Member] | Convertible Notes Payable [Member]
Debt Instrument [Line Items]
Debt Conversion, Converted Instrument, Shares Issued (in shares)	24,397
Paid-in-Kind Interest	$ 90,000
Interest and Debt Expense		$ 45,000	$ 45,000	$ 90,000	$ 90,000

DEBT ASSIGNMENT (Details Textua

DEBT ASSIGNMENT (Details Textual) - USD ($)	Jan. 13, 2017	Feb. 02, 2017	Jun. 30, 2017	Jun. 30, 2016
Conversion of Stock, Shares Converted			977,751
Convertible Notes Payable [Member]
Repayments of Debt			$ 824,000
Asset Purchase Modification Agreements [Member]
Long-term Debt	$ 1,038,000
Debt Related Commitment Fees and Debt Issuance Costs	$ 312,000
Debt Instrument, Interest Rate, Stated Percentage	9.00%
Notes Payable, Current	$ 122,000
Business Combination Asset Purchase Modification Agreement Consideration Payables Terms		On February 2, 2017, the New Holders agreed that any sales of common stock underlying the Series D Convertible Preferred Stock (the “Series D Preferred Stock”) would not, in the aggregate, exceed 2.75% of that day’s dollar volume of our common stock traded, provided that the New Holders shall be entitled to sell no less than an aggregate of $27,500 each trading day.
Long-term Debt, Gross	$ 1,472,000
Series D Preferred Stock [Member] | Convertible Notes Payable [Member]
Interest Expense, Debt			$ 434,000	$ 0
Stock Issued During Period, Shares, New Issues			5,000,000
Conversion of Stock, Shares Converted			416,667
Conversion of Stock, Amount Issued			$ 648,000

COMMITMENTS AND CONTINGENCIES36

COMMITMENTS AND CONTINGENCIES (Details)	Jun. 30, 2017USD ($)
Other Commitments [Line Items]
Balance 2,017	$ 608,000
2,018	1,091,000
2,019	971,000
2,020	509,000
2,021	141,000
Thereafter	188,000
Operating Leases, Future Minimum Payments Due, Total	$ 3,508,000

COMMITMENTS AND CONTINGENCIES37

COMMITMENTS AND CONTINGENCIES (Details Textual) - USD ($)	May 15, 2017	Jan. 31, 2017	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Other Commitments [Line Items]
Operating Leases, Rent Expense, Net, Total			$ 350,000	$ 171,000	$ 553,000	$ 330,000
Operating Leases Expiration Term					2017 through 2023
Operating Leases, Future Minimum Payments Due			3,508,000		$ 3,508,000
Office [Member]
Other Commitments [Line Items]
Operating Leases, Future Minimum Payments Due	$ 794,000
Operating Leases, Future Minimum Payments, Remainder of Fiscal Year	$ 43,000
Lease Expiration Date	Apr. 30, 2023
Integrated Microwave Technologies LLC [Member]
Other Commitments [Line Items]
Operating Leases Expiration Year and Month					2017-02
Operating Leases, Future Minimum Payments Due		$ 253,000
Operating Leases, Future Minimum Payments, Remainder of Fiscal Year		$ 43,000	35,000		$ 35,000
Lease Expiration Date		Apr. 29, 2020
Vislink [Member]
Other Commitments [Line Items]
Operating Leases, Future Minimum Payments Due			2,020,000		2,020,000
Operating Leases, Future Minimum Payments, Remainder of Fiscal Year			$ 337,000		$ 337,000
Lease Expiration Date					Mar. 31, 2020

STOCKHOLDERS' EQUITY (Details)

STOCKHOLDERS' EQUITY (Details)	6 Months Ended
	Jun. 30, 2017$ / sharesshares
Class of Warrant or Right [Line Items]
Warrants Outstanding, Number of Warrants (in Shares) | shares	7,611,904
Granted Number of Warrants (in Shares) | shares	1,365,000
Exercised, Number of Warrants (in Shares) | shares	(794,400)
Forfeited or Expired, Number of Warrants (in Shares) | shares	(7)
Warrants Outstanding, Number of Warrants (in Shares) | shares	8,182,497
Exercisable, Number of Options and Warrants (in Shares) | shares	8,032,497
Warrants Outstanding, Weighted Average Exercise Price | $ / shares	$ 5.98
Granted, Weighted Average Exercise Price | $ / shares	2.02
Exercised, Weighted Average Exercise Price | $ / shares	2
Forfeited or Expired, Weighted Average Exercise Price | $ / shares	42,000
Warrants Outstanding, Weighted Average Exercise Price | $ / shares	5.67
Exercisable, Weighted Average Exercise Price | $ / shares	$ 5.73

STOCKHOLDERS' EQUITY (Details 1

STOCKHOLDERS' EQUITY (Details 1) - $ / shares	1 Months Ended	6 Months Ended
	Mar. 16, 2017	Jun. 30, 2017
Class of Warrant or Right [Line Items]
Number of Options, Outstanding (in Shares)		1,844
Number of Options, Granted (in Shares)	3,555,500	3,555,500
Number of Options, Exercised (in Shares)		0
Number of Options, Cancelled (in Shares)		(1,844)
Number of Options, Outstanding (in Shares)		3,555,500
Number of Options, Exercisable (in Shares)		0
Weighted Average Exercise Price Outstanding		$ 1,544.37
Weighted Average Exercise Price, Granted	$ 1.55	1.55
Weighted Average Exercise Price, Exercised		0
Weighted Average Exercise Price, Cancelled		1,544.37
Weighted Average Exercise Price, Outstanding		1.55
Weighted Average Exercise Price, Exercisable		$ 0

STOCKHOLDERS' EQUITY (Details T

STOCKHOLDERS' EQUITY (Details Textual) - USD ($)	1 Months Ended				3 Months Ended		6 Months Ended
	Mar. 24, 2017	Mar. 16, 2017	Feb. 16, 2017	Feb. 14, 2017	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	May 19, 2017	Dec. 31, 2016
Class of Warrant or Right [Line Items]
Share-based Compensation, Total					$ 438,000	$ 82,000	$ 603,000	$ 180,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value					$ 0.08	$ 0	$ 0.08	0
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition							2 years 8 months 26 days
Proceeds from Warrant Exercises							$ 1,589,000	$ 492,000
Common Stock, Shares, Issued					11,621,229		11,621,229			7,606,518
Stock Issued During Period, Shares, Deferred Compensation							104,218
Stock Issued During Period, Value, Deferred Compensation							$ 295,000
stock Issued During the Period, Interest Accrued							24,397
Stock Issued During Period, Shares, Share-based Compensation, Gross							853,503
Stock Issued During Period, Value, Share-based Compensation, Gross							$ 1,426,000
Conversion of Stock, Shares Converted							977,751
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period							1,844
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period		10 years
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross		3,555,500					3,555,500
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate	1.90%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate	0.00%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate	286.51%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term	6 years
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options					$ 4,700,000		$ 4,700,000
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price		$ 1.55					$ 1.55
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term							9 years 8 months 26 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term							0 years
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights							The options vest at one third on March 24, 2018, one third on March 24, 2019 and one third on March 24, 2020 
Stock Option [Member]
Class of Warrant or Right [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period			1,844
Lincoln Park Purchase Agreement [Member]
Class of Warrant or Right [Line Items]
Common Stock Issuable, Value									$ 15,000,000
Common Stock Issuable, Shares									125,000
Convertible Debt [Member]
Class of Warrant or Right [Line Items]
Debt Conversion, Original Debt, Amount							$ 2,000,000
Common Stock [Member] | Series D Preferred Stock [Member]
Class of Warrant or Right [Line Items]
Conversion of Stock, Shares Issued							416,667
Conversion of Stock, Amount Issued							$ 648,000
Conversion of Stock, Shares Converted							5,000,000
MB Technology Holdings LLC [Member]
Class of Warrant or Right [Line Items]
Stock Issued During Period, Shares, New Issues							71,526
Class of Warrant or Right, Exercise Price of Warrants or Rights			$ 2.10
Maximum [Member] | Lincoln Park Purchase Agreement [Member]
Class of Warrant or Right [Line Items]
Common Stock Issuable, Value									$ 1,000,000
Minimum [Member]
Class of Warrant or Right [Line Items]
Percentage Of Common Stock To Be Issued									20.00%
December 2016 Financing [Member] | Common Stock [Member]
Class of Warrant or Right [Line Items]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights					794,400		794,400
Warrants Issued To Common Stock							794,400
February 2017 Financing [Member]
Class of Warrant or Right [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights				$ 2
Class of Warrant or Right, Number of Securities Called by Warrants or Rights				1,312,500
Net Proceeds From Issuance Or Sale Of Equity				$ 3,500,000
February 2017 Financing [Member] | Common Stock [Member]
Class of Warrant or Right [Line Items]
Common Stock, Shares, Issued				1,750,000
August 2015 Underwritten Offering [Member]
Class of Warrant or Right [Line Items]
Proceeds from Warrant Exercises							$ 1,589,000

DERIVATIVE LIABILITIES (Details

DERIVATIVE LIABILITIES (Details)	6 Months Ended
	Jun. 30, 2017$ / sharesshares
Number of shares underlying the warrants | shares	977,751
Fair market value of stock	$ 1.63
Expected dividend yield	0.00%
Maximum [Member]
Exercise price	$ 2,400
Volatility	184.00%
Risk-free interest rate	1.89%
Warrant life (years)	4 years 1 month 6 days
Minimum [Member]
Exercise price	$ 2
Volatility	169.00%
Risk-free interest rate	1.24%
Warrant life (years)	1 year 3 months 18 days

DERIVATIVE LIABILITIES (Detai42

DERIVATIVE LIABILITIES (Details 1) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Beginning balance	$ 1,400,000	$ 938,000	$ 1,183,000	$ 1,284,000
Recognition of warrant liabilities on issuance dates	0	826,000	0	1,057,000
Reclassification to stockholders’ equity upon exercise	0	(2,315,000)	0	(2,379,000)
Change in fair value of derivative liabilities	(27,000)	1,773,000	190,000	1,260,000
Ending balance	$ 1,373,000	$ 1,222,000	$ 1,373,000	$ 1,222,000

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details Textual) - USD ($)	Mar. 15, 2016	Mar. 03, 2016	Jan. 12, 2013	Feb. 16, 2017	Apr. 29, 2014	Jun. 30, 2017	Mar. 31, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Jul. 31, 2016	Dec. 31, 2016
Related Party Transaction [Line Items]
Distribution Fees											$ 436,000
Due to Related Parties, Current						$ 1,633,000			$ 1,633,000			$ 96,000
Business Combination, Bargain Purchase, Gain Recognized, Amount						$ 3,691,000		$ 2,237,000	$ 15,530,000	$ 2,749,000
Deligence Fee [Member]
Related Party Transaction [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights						$ 0.01			$ 0.01
MB Technology Holdings LLC [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Expenses from Transactions with Related Party					$ 25,000	$ 75,000		$ 150,000	$ 75,000	$ 150,000
Debt Conversion, Converted Instrument, Shares Issued									71,526
Due to Related Parties						150,000			$ 150,000			150,000
Deferred Compensation Arrangement with Individual, Cash Awards Granted, Percentage									3.00%
Due to Related Parties, Current						1,633,000			$ 1,633,000			$ 96,000
Class of Warrant or Right, Exercise Price of Warrants or Rights				$ 2.10
Acquisition Fee Minimum Amount to Waive Success Fee									$ 1,000,000
Related Party Transaction Fee, Percentage of Fee That can be Converted to Equity									50.00%
Related Party Transaction Fee, Common Stock Price Percentage for Conversion									110.00%
Related Party Transaction Fee, Shares Registration Minimum Percentage									25.00%
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Outstanding Stock Maximum									25.00%
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent									125.00%
Stock Issued During Period, Value, Issued for Services	$ 150,000	$ 300,000
Diluted Outstanding Shares ,Percentage				25.00%
Business Combination, Bargain Purchase, Gain Recognized, Amount									$ 15,530,000
MB Technology Holdings LLC [Member] | Vislink International Limited [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Rate									3.00%
Business Acquisition, Transaction Costs						$ 777,000			$ 777,000
MB Technology Holdings LLC [Member] | Vislink Communication Systems [Member]
Related Party Transaction [Line Items]
Business Acquisition Cost Of Acquired Entity Transaction Costs, Percentage						5.00%	8.00%
Business Acquisition, Transaction Costs						$ 777,000	$ 1,480,000		777,000
MB Technology Holdings LLC [Member] | Minimum [Member]
Related Party Transaction [Line Items]
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual									$ 50,000,000
MB Technology Holdings LLC [Member] | Success Fee [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Rate									3.00%
MB Technology Holdings LLC [Member] | Acquisition Fee [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Rate									8.00%
Related Party Transaction, Amounts of Transaction									$ 250,000
Related Party Transaction, Terms and Manner of Settlement									The Company will pay MBTH an acquisition fee equal to the greater of $250,000 or 8% of the total acquisition price (the ‘‘Acquisition Fee’’). Where possible, the Company will pay MBTH 50% of the Acquisition Fee at closing of a transaction, and in any case, not later than thirty (30) days following such closing, 25% of the Acquisition Fee three (3) months following such closing and 25% of the Acquisition Fee six (6) months following such closing.
MB Technology Holdings LLC [Member] | Deligence Fee [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Amounts of Transaction									$ 250,000
Related Party Transaction, Terms and Manner of Settlement									This due diligence fee shall be paid to MBTH as warrants to purchase shares of common stock of the Company in an amount equal to $250,000 divided by the lower of the market price of the common stock on the day of closing of the transaction or the price of equity offered to finance such acquisition.
MB Technology Holdings LLC [Member] | Additional Fee on Independent Transaction [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Rate									5.00%
MB Technology Holdings LLC [Member] | Common Stock [Member]
Related Party Transaction [Line Items]
Due to Related Parties, Current						120,000			$ 120,000
MB Technology Holdings LLC [Member] | Warrant [Member]
Related Party Transaction [Line Items]
Due to Related Parties, Current						$ 265,000			$ 265,000
MB Technology Holdings LLC [Member] | Management Fees [Member]
Related Party Transaction [Line Items]
Due to Related Parties							$ 27,000
M&A Services Agreement [Member] | Success Fee [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Rate			3.00%
Integrated Microwave Technologies [Member]
Related Party Transaction [Line Items]
Stock Issued During Period, Value, Issued for Services	$ 150,000

CONCENTRATIONS (Details Textual

CONCENTRATIONS (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Concentration Risk [Line Items]
Concentration Risk, Percentage			19.00%
Sales Revenue, Net [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage		10.00%
Accounts Receivable [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage		10.00%		56.00%
Inventories [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	11.00%	33.00%	11.00%	32.00%
One Customer [Member]
Concentration Risk [Line Items]
Concentration Risk, Net Assets Amount, Geographic Area		$ 325,000		$ 325,000
Concentration Risk, Percentage				13.00%
One Customer [Member] | Sales Revenue, Net [Member]
Concentration Risk [Line Items]
Concentration Risk, Net Assets Amount, Geographic Area	$ 2,428,000	$ 232,000	$ 2,428,000	$ 232,000
Concentration Risk, Percentage	17.00%	13.00%	17.00%	20.00%
One Customer [Member] | Accounts Receivable [Member]
Concentration Risk [Line Items]
Concentration Risk, Net Assets Amount, Geographic Area		$ 200,000		$ 200,000
Concentration Risk, Percentage		12.00%		12.00%
Two Customers [Member] | Sales Revenue, Net [Member]
Concentration Risk [Line Items]
Concentration Risk, Net Assets Amount, Geographic Area	$ 2,944,000	$ 189,000	$ 2,944,000	$ 189,000
Concentration Risk, Percentage		11.00%	13.00%	11.00%
Two Customers [Member] | Accounts Receivable [Member]
Concentration Risk [Line Items]
Concentration Risk, Net Assets Amount, Geographic Area		$ 189,000		$ 189,000
Concentration Risk, Percentage			16.00%
Three Customers [Member] | Sales Revenue, Net [Member]
Concentration Risk [Line Items]
Concentration Risk, Net Assets Amount, Geographic Area	$ 2,023,000	117,000	$ 2,023,000	$ 117,000
Concentration Risk, Percentage			10.00%	10.00%
Three Customers [Member] | Inventories [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage				10.00%
Four Customers [Member] | Accounts Receivable [Member]
Concentration Risk [Line Items]
Concentration Risk, Net Assets Amount, Geographic Area		$ 115,000		$ 115,000
Concentration Risk, Percentage		10.00%

GEOGRAPHICAL INFORMATION (Detai

GEOGRAPHICAL INFORMATION (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Total Revenue	$ 14,218,000	$ 1,655,000	$ 23,553,000	$ 2,584,000
Long-Lived Assets	12,408,000		12,408,000
North America [Member]
Total Revenue	5,808,000		7,674,000
South America [Member]
Total Revenue	2,452,000		3,111,000
Europe [Member]
Total Revenue	3,130,000		7,032,000
Non-US [Member]
Total Revenue	2,828,000		5,736,000
UNITED STATES
Long-Lived Assets	6,911,000		6,911,000
UNITED KINGDOM
Long-Lived Assets	$ 5,497,000		$ 5,497,000

SUBSEQUENT EVENTS (Details Text

SUBSEQUENT EVENTS (Details Textual) - USD ($)	1 Months Ended	6 Months Ended
	Aug. 14, 2017	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Subsequent Event [Line Items]
Increase (Decrease) in Due to Related Parties		$ 1,657,000	$ 312,000
Proceeds from Warrant Exercises		$ 1,589,000	$ 492,000
MB Technology Holdings LLC [Member]
Subsequent Event [Line Items]
Debt Conversion, Converted Instrument, Shares Issued		71,526
Due to Related Parties		$ 150,000		$ 150,000
Stock Issued During Period, Shares, New Issues		71,526
Subsequent Event [Member]
Subsequent Event [Line Items]
Increase (Decrease) in Due to Related Parties	$ 567,000
Stock Issued During Period, Shares, New Issues	290,096
Subsequent Event [Member] | December 2016 Financing [Member]
Subsequent Event [Line Items]
Proceeds from Warrant Exercises	$ 511,250
Subsequent Event [Member] | MB Technology Holdings LLC [Member]
Subsequent Event [Line Items]
Debt Conversion, Converted Instrument, Shares Issued	8,512
Due to Related Parties	$ 20,000
Subsequent Event [Member] | Treco International, S.A [Member] | Convertible Notes Payable [Member]
Subsequent Event [Line Items]
Long-term Debt, Gross	$ 2,000,000
Stock Issued During Period, Shares, New Issues	60,403
Paid-in-Kind Interest	$ 90,000
Subsequent Event [Member] | Common Stock [Member] | December 2016 Financing [Member]
Subsequent Event [Line Items]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights	255,625
Warrants Issued To Common Stock	255,625