Cover
Cover - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Mar. 10, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity File Number | 001-39080 | ||
Entity Registrant Name | POWERFLEET, INC. | ||
Entity Central Index Key | 0001774170 | ||
Entity Tax Identification Number | 83-4366463 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Address, Address Line One | 123 Tice Boulevard | ||
Entity Address, City or Town | Woodcliff Lake | ||
Entity Address, State or Province | NJ | ||
Entity Address, Postal Zip Code | 07677 | ||
City Area Code | (201) | ||
Local Phone Number | 996-9000 | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Trading Symbol | PWFL | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 237.7 | ||
Entity Common Stock, Shares Outstanding | 35,967,442 | ||
Documents Incorporated by Reference | Portions of the Proxy Statement For the Registrant’s 2022 Annual Meeting of Stockholders | ||
ICFR Auditor Attestation Flag | true | ||
Auditor Firm ID | 42 | ||
Auditor Name | Ernst & Young LLP | ||
Auditor Location | Iselin, New Jersey |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 26,452 | $ 18,127 |
Restricted cash | 308 | 308 |
Accounts receivable, net of allowance for doubtful accounts of $2,364 and $3,176 in 2020 and 2021, respectively | 32,094 | 24,147 |
Inventory, net | 18,243 | 12,873 |
Deferred costs - current | 1,762 | 3,128 |
Prepaid expenses and other current assets | 9,051 | 6,184 |
Total current assets | 87,910 | 64,767 |
Deferred costs - less current portion | 249 | 2,233 |
Fixed assets, net | 8,988 | 8,804 |
Goodwill | 83,487 | 83,344 |
Intangible assets, net | 26,122 | 31,276 |
Right of use asset | 9,787 | 9,700 |
Severance payable fund | 4,359 | 4,056 |
Deferred tax asset | 4,262 | 12,269 |
Other assets | 4,703 | 3,115 |
Total assets | 229,867 | 219,564 |
Current liabilities: | ||
Short-term bank debt and current maturities of long-term debt | 6,114 | 5,579 |
Accounts payable and accrued expenses | 29,015 | 20,225 |
Deferred revenue - current | 6,519 | 7,339 |
Lease liability - current | 2,640 | 2,755 |
Total current liabilities | 44,288 | 35,898 |
Long-term debt, less current maturities | 18,110 | 23,179 |
Deferred revenue - less current portion | 4,428 | 6,006 |
Lease liability - less current portion | 7,368 | 7,050 |
Accrued severance payable | 4,887 | 4,714 |
Deferred tax liability | 5,220 | 10,763 |
Other long-term liabilities | 706 | 674 |
Total liabilities | 85,007 | 88,284 |
Commitments and Contingencies (note 21) | ||
MEZZANINE EQUITY | ||
Convertible redeemable preferred stock: Series A – 100 shares authorized, $0.01 par value; 55 and 55 shares issued and outstanding at December 31, 2020 and December 31, 2021 | 52,663 | 51,992 |
Preferred stock; authorized 50,000 shares, $0.01 par value; | ||
Common stock; authorized 75,000 shares, $0.01 par value; 32,280 and 37,263 shares issued at December 31, 2020 and December 31, 2021, respectively; shares outstanding, 31,101 and 35,882 at December 31, 2020 and December 31, 2021, respectively | 373 | 323 |
Additional paid-in capital | 234,083 | 206,499 |
Accumulated deficit | (134,437) | (121,150) |
Accumulated other comprehensive gain (loss) | 391 | 399 |
Treasury stock; 1,179 and 1,381 common shares at cost at December 31, 2020 and December 31, 2021, respectively | (8,299) | (6,858) |
Total Powerfleet, Inc. stockholders’ equity | 92,111 | 79,213 |
Non-controlling interest | 86 | 75 |
Total equity | 92,197 | 79,288 |
Total liabilities and stockholders’ equity | $ 229,867 | $ 219,564 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Accounts Receivable, Allowance for Credit Loss, Current | $ 3,176 | $ 2,364 |
Temporary Equity, Shares Authorized | 100,000 | 100,000 |
Temporary Equity, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Temporary Equity, Shares Issued | 55,000 | 55,000 |
Temporary equity, shares outstanding | 55,000 | 55,000 |
Preferred Stock, Shares Authorized | 50,000,000 | 50,000,000 |
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 75,000,000 | 75,000,000 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares, Issued | 37,263,000 | 32,280,000 |
Common Stock, Shares, Outstanding | 35,882,000 | 31,101,000 |
Treasury Stock, Shares | 1,381,000 | 1,179,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues: | |||
Total revenues | $ 126,208 | $ 113,593 | $ 81,915 |
Cost of Revenues: | |||
Total cost of revenue | 66,025 | 54,576 | 43,551 |
Gross profit | 60,183 | 59,017 | 38,364 |
Operating expenses: | |||
Selling, general and administrative expenses | 57,100 | 51,878 | 34,447 |
Research and development expenses | 11,058 | 10,597 | 8,540 |
Acquisition related expenses | 5,135 | ||
Total Operating expenses | 68,158 | 62,475 | 48,122 |
Loss from operations | (7,975) | (3,458) | (9,758) |
Interest income | 45 | 55 | 125 |
Interest expense | (2,764) | (4,467) | (1,373) |
Other (expense) income, net | 8 | (102) | (50) |
Net loss before income taxes | (10,686) | (7,972) | (11,056) |
Income tax benefit (expense) | (2,607) | (1,038) | 75 |
Net loss before non-controlling interest | (13,293) | (9,010) | (10,981) |
Non-controlling interest | 5 | 3 | 18 |
Net loss | (13,288) | (9,007) | (10,963) |
Accretion of preferred stock | (672) | (672) | (168) |
Preferred stock dividends | (4,112) | (3,927) | (916) |
Net loss attributable to common stockholders | $ (18,072) | $ (13,606) | $ (12,047) |
Net loss per share attributable to common stockholders - basic and diluted | $ (0.52) | $ (0.46) | $ (0.59) |
Weighted average common shares outstanding - basic and diluted | 34,571 | 29,703 | 20,476 |
Product [Member] | |||
Revenues: | |||
Total revenues | $ 52,981 | $ 45,651 | $ 45,416 |
Cost of Revenues: | |||
Total cost of revenue | 39,445 | 30,219 | 29,982 |
Service [Member] | |||
Revenues: | |||
Total revenues | 73,227 | 67,942 | 36,499 |
Cost of Revenues: | |||
Total cost of revenue | $ 26,580 | $ 24,357 | $ 13,569 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | |||
Net loss attributable to common stockholders | $ (18,072) | $ (13,606) | $ (12,047) |
Other comprehensive (loss) income, net: | |||
Unrealized (loss) gain on investments | 9 | ||
Reclassification of net realized investment loss (gain) included in net loss | 38 | ||
Foreign currency translation adjustment | (8) | 134 | 653 |
Total other comprehensive income (loss), net | (8) | 134 | 700 |
Comprehensive loss | $ (18,080) | $ (13,472) | $ (11,347) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Treasury Stock [Member] | Noncontrolling Interest [Member] | Total |
Beginning balance, value at Dec. 31, 2018 | $ 192 | $ 138,693 | $ (101,180) | $ (435) | $ (5,736) | $ 31,534 | |
Beginning balance, shares at Dec. 31, 2018 | 19,178 | ||||||
Net loss attributable to common stockholders | (1,084) | (10,963) | (12,047) | ||||
Foreign currency translation adjustment | 653 | 8 | 661 | ||||
Reclassification of realized losses on investments, net of unrealized amounts | 47 | 47 | |||||
Shares issued pursuant to Pointer Transactions | $ 107 | 57,973 | 58,080 | ||||
Shares issued pursuant to Pointer Transactions, shares | 10,756 | ||||||
Share based awards assumed Pointer Transaction | 246 | 246 | |||||
Shares issued relating to Keytroller acquisition consideration | $ 1 | 999 | 1,000 | ||||
Shares issued relating to Keytroller acquisition consideration, shares | 148 | ||||||
Shares issued pursuant to CarrierWeb acquisition | $ 1 | 405 | 406 | ||||
Shares issued pursuant to CarrierWeb acquisition, shares | 71 | ||||||
Shares issued pursuant to exercise of stock options | $ 1 | 221 | 222 | ||||
Shares issued pursuant to exercise of stock options, shares | 59 | ||||||
Issuance of restricted shares | $ 6 | (6) | |||||
Issuance of restricted shares, shares | 625 | ||||||
Forfeiture of restricted shares | |||||||
Forfeiture of restricted shares, shares | (40) | ||||||
Vesting of restricted stock units | |||||||
Vesting of restricted stock units, shares | 7 | ||||||
Shares withheld pursuant to vesting of restricted stock | (317) | (317) | |||||
Stock based compensation | 4,213 | 4,213 | |||||
Net loss attributable to non-controlling interest | (18) | (18) | |||||
Other | 153 | 153 | |||||
Ending balance, value at Dec. 31, 2019 | $ 308 | 201,813 | (112,143) | 265 | (6,053) | (10) | 84,180 |
Ending balance, shares at Dec. 31, 2019 | 30,804 | ||||||
Net loss attributable to common stockholders | (4,599) | (9,007) | (13,606) | ||||
Foreign currency translation adjustment | 134 | 88 | 222 | ||||
Shares issued pursuant to exercise of stock options | $ 3 | 935 | 938 | ||||
Shares issued pursuant to exercise of stock options, shares | 199 | ||||||
Issuance of restricted shares | $ 4 | (4) | |||||
Issuance of restricted shares, shares | 461 | ||||||
Forfeiture of restricted shares | $ (1) | 1 | |||||
Forfeiture of restricted shares, shares | (143) | ||||||
Vesting of restricted stock units | $ 1 | (1) | |||||
Vesting of restricted stock units, shares | 149 | ||||||
Shares withheld pursuant to vesting of restricted stock | (423) | (423) | |||||
Common shares issued | $ 8 | 4,033 | 4,041 | ||||
Common shares issued, shares | 810 | ||||||
Stock based compensation | 4,259 | 4,259 | |||||
Net loss attributable to non-controlling interest | (3) | (3) | |||||
Other | 62 | 62 | |||||
Shares withheld pursuant to exercise of stock options | (382) | (382) | |||||
Ending balance, value at Dec. 31, 2020 | $ 323 | 206,499 | (121,150) | 399 | (6,858) | 75 | 79,288 |
Ending balance, shares at Dec. 31, 2020 | 32,280 | ||||||
Net loss attributable to common stockholders | (4,785) | (13,287) | (18,072) | ||||
Foreign currency translation adjustment | (8) | 16 | 8 | ||||
Shares issued pursuant to exercise of stock options | $ 2 | 875 | 877 | ||||
Shares issued pursuant to exercise of stock options, shares | 156 | ||||||
Issuance of restricted shares | $ 5 | (4) | 1 | ||||
Issuance of restricted shares, shares | 449 | ||||||
Forfeiture of restricted shares | $ (1) | (1) | |||||
Forfeiture of restricted shares, shares | (89) | ||||||
Vesting of restricted stock units | |||||||
Vesting of restricted stock units, shares | 39 | ||||||
Shares withheld pursuant to vesting of restricted stock | (794) | (794) | |||||
Common shares issued, net of issuance costs | $ 44 | 26,822 | 26,866 | ||||
Common shares issued, net of issuance costs, shares | 4,428 | ||||||
Stock based compensation | 4,676 | 4,676 | |||||
Net loss attributable to non-controlling interest | (5) | (5) | |||||
Shares withheld pursuant to exercise of stock options | (647) | (647) | |||||
Ending balance, value at Dec. 31, 2021 | $ 373 | $ 234,083 | $ (134,437) | $ 391 | $ (8,299) | $ 86 | $ 92,197 |
Ending balance, shares at Dec. 31, 2021 | 37,263 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities (net of net assets acquired): | |||
Net loss | $ (13,288) | $ (9,007) | $ (10,963) |
Adjustments to reconcile net loss to cash (used in) provided by operating activities: | |||
Non-controlling interest | (5) | (3) | (18) |
Inventory reserve | (22) | 260 | 207 |
Stock based compensation expense | 4,676 | 4,259 | 3,794 |
Depreciation and amortization | 8,553 | 8,425 | 3,347 |
Right-of-use assets, non-cash lease expense | 2,859 | 2,832 | 965 |
Bad debt expense | 1,442 | 1,035 | 474 |
Change in contingent consideration | 54 | ||
Deferred income taxes | 2,607 | 359 | |
Other non-cash items | 305 | 23 | (40) |
Changes in: | |||
Accounts receivable | (9,643) | 2,168 | (1,297) |
Inventory | (6,058) | 3,050 | (3,283) |
Prepaid expenses and other assets | (2,918) | 1,908 | 567 |
Deferred costs | 3,349 | 3,169 | 539 |
Deferred revenue | (2,290) | (4,326) | (857) |
Accounts payable and accrued expenses | 8,300 | (2,392) | 360 |
Lease liabilities | (2,741) | (2,962) | (1,106) |
Accrued severance payable, net | (145) | 50 | (12) |
Net cash (used in) provided by operating activities | (5,019) | 8,848 | (7,269) |
Cash flows from investing activities: | |||
Acquisitions, net of cash assumed | (69,005) | ||
Proceeds from sale of property and equipment | 75 | 24 | |
Capital expenditures | (3,398) | (3,373) | (1,042) |
Purchases of investments | (99) | ||
Proceeds from the sale and maturities of investments | 4,638 | ||
Net cash (used in) provided by investing activities | (3,398) | (3,298) | (65,484) |
Cash flows from financing activities: | |||
Net proceeds from stock offering | 26,867 | 4,041 | 46,309 |
Payment of preferred stock dividends | (4,112) | ||
Proceeds from convertible note | 5,000 | ||
Repayment of convertible note | (5,000) | ||
Proceeds from long-term-debt | 30,000 | ||
Repayment of long-term debt | (5,709) | (2,858) | (2,010) |
Debt issuance costs | (742) | ||
Short-term bank debt, net | (270) | (262) | 75 |
Proceeds from exercise of stock options, net | 229 | 556 | 330 |
Purchase of treasury stock upon vesting of restricted stock | (794) | (423) | (317) |
Net cash (used in) provided by financing activities | 16,211 | (3,946) | 78,645 |
Effect of foreign exchange rate changes on cash and cash equivalents | 531 | 128 | 345 |
Net (decrease) increase in cash, cash equivalents and restricted cash | 8,325 | 1,732 | 6,237 |
Cash, cash equivalents, and restricted cash, beginning of period | 18,435 | 16,703 | 10,466 |
Cash, cash equivalents, and restricted cash, end of period | 26,760 | 18,435 | 16,703 |
Reconciliation of cash, cash equivalents, and restricted cash, end of period | |||
Cash and cash equivalents | 18,127 | 16,395 | 10,159 |
Restricted cash | 308 | 308 | 307 |
Cash and cash equivalents | 26,452 | 18,127 | 16,395 |
Restricted cash | 308 | 308 | 308 |
Cash paid for: | |||
Taxes | 58 | 47 | 605 |
Interest | 1,474 | 2,297 | 807 |
Noncash investing and financing activities: | |||
Unrealized (loss) gain on investments | 47 | ||
Value of shares withheld pursuant to exercise of stock options | 647 | 382 | |
Value of shares issued relating to acquisition contingent consideration | 1,000 | ||
Value of shares issued pursuant to acquisitions | $ (58,486) |
DESCRIPTION OF BUSINESS AND LIQ
DESCRIPTION OF BUSINESS AND LIQUIDITY | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
DESCRIPTION OF BUSINESS AND LIQUIDITY | NOTE 1 - DESCRIPTION OF BUSINESS AND LIQUIDITY The Company is a global leader of Internet-of-Things (“IoT”) solutions providing valuable business intelligence for managing high-value enterprise assets that improve operational efficiencies. I.D. Systems, Inc. was incorporated in the State of Delaware in 1993. PowerFleet, Inc. was incorporated in the State of Delaware in February 2019 for the purpose of effectuating the transactions pursuant to which the Company acquired Pointer Telocation Ltd. (the “Transactions”) and commenced operations on October 3, 2019, upon the closing of the Transactions. Impact of COVID-19 and Supply Chain Disruptions The global outbreak of COVID-19, and mitigation efforts by governments to attempt to control its spread, has resulted in significant economic disruption and continues to adversely impact the broader global economy. The extent of the impact on the Company’s business and financial results will depend largely on future developments that cannot be accurately predicted at this time, including the duration of the spread of the outbreak, the extent and effectiveness of containment actions and the impact of these and other factors on capital and financial markets and the related impact on the financial circumstances of our employees, customers and suppliers. In addition, the Company has experienced a significant impact to its supply chain given COVID-19 and the related global semiconductor chip shortage, including delays in supply chain deliveries, extended lead times and shortages of certain key components, some raw material cost increases and slowdowns at certain production facilities. As a result of these supply chain issues, the Company has had to increase its volume of inventory to ensure supply. The Company incurred supply chain constraint expenses which lowered its gross margins and decreased its profitability primarily during the last six months of 2021. The supply chain disruptions and the related global semiconductor chip shortage have delayed and may continue to delay the timing of some orders and expected deliveries of the Company’s products. If the impact of the supply chain disruptions are more severe than the Company expects, it could result in longer lead times, inventory supply challenges and further increased costs, all of which could result in the deterioration of the Company’s results, potentially for a longer period than currently anticipated. As of the date of these audited consolidated financial statements, the full extent to which the COVID-19 pandemic may materially impact the Company’s business, results of operations and financial condition is uncertain. Liquidity As of December 31, 2021, the Company had cash (including restricted cash) and cash equivalents of $ 26,760 and working capital of $ 43,622 . The Company’s primary sources of cash are cash flows from operating activities, its holdings of cash, cash equivalents and investments from the sale of its capital stock and borrowings under its credit facility. To date, the Company has not generated sufficient cash flows solely from operating activities to fund its operations. In addition, the Company’s subsidiaries, PowerFleet Israel Ltd. (“PowerFleet Israel”) and Pointer Telocation Ltd. (“Pointer”) are party to a Credit Agreement (the “Credit Agreement”) with Bank Hapoalim B.M. (“Hapoalim”), pursuant to which Hapoalim provided PowerFleet Israel with two senior secured term loan facilities in an aggregate principal amount of $ 30,000 (comprised of two facilities in the aggregate principal amount of $ 20,000 and $ 10,000 ) and a five-year revolving credit facility to Pointer in an aggregate principal amount of $ 10,000 . The proceeds of the term loan facilities were used to finance a portion of the cash consideration payable in the Company’s acquisition of Pointer. The proceeds of the revolving credit facility may be used by Pointer for general corporate purposes. The Company has not borrowed under the revolving credit facility since its inception and does not have any borrowings as of December 31, 2021. See Note 11 for additional information. The Company has on file a shelf registration statement on Form S-3 that was declared effective by the Securities and Exchange Commission (the “SEC”) on November 27, 2019. Pursuant to the shelf registration statement, the Company may offer to the public from time to time, in one or more offerings, up to $60,000 of its common stock, preferred stock, warrants, debt securities, and units, or any combination of the foregoing, at prices and on terms to be determined at the time of any such offering. The specific terms of any future offering will be determined at the time of the offering and described in a prospectus supplement that will be filed with the SEC in connection with such offering On May 14, 2020, we entered into an equity distribution agreement for an “at-the-market offering” program (the “ATM Offering”) with Canaccord Genuity LLC, (“Canaccord”) as sales agent pursuant to which we issued and sold an aggregate of 810 shares of common stock for approximately $ 4,200 in gross proceeds. We terminated the equity distribution agreement effective as of August 14, 2020. See Note 14 for additional information regarding the ATM Offering. On February 1, 2021, the Company closed an underwritten public offering (the “Underwritten Public Offering”) of 4,428 28,800 Because of the COVID-19 pandemic, there is significant uncertainty surrounding the potential impact on our results of operations and cash flows. During 2020 and 2021 we proactively took steps to increase available cash on hand including, but not limited to, targeted reductions in discretionary operating expenses and capital expenditures. The Company believes that its available working capital, anticipated level of future revenues, expected cash flows from operations and available borrowings under its revolving credit facility with Hapoalim will provide sufficient funds to cover capital requirements through at least March 16, 2023. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [A] Principles of consolidation The consolidated financial statements include the accounts of PowerFleet Inc. and its subsidiaries (which, as noted above, are collectively referred to herein as the “Company”). All material intercompany balances and transactions have been eliminated in consolidation. [B] Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company continually evaluates estimates used in the preparation of the financial statements for reasonableness. The most significant estimates relate to realization of deferred tax assets, accounting for uncertain tax positions, the impairment of intangible assets, including goodwill, and stand-alone selling price related to multiple element revenue arrangements. Actual results could differ from those estimates. As of December 31, 2021, the impact of the COVID-19 pandemic continues to unfold. As a result, many of our estimates and assumptions required increased judgment and carry a higher degree of variability and volatility. As events continue to evolve and additional information becomes available, our estimates may change materially in future periods. [C] Cash and cash equivalents The Company considers all highly liquid debt instruments with an original maturity of three months or less when purchased to be cash equivalents unless they are legally or contractually restricted. The Company’s cash and cash equivalent balances exceed Federal Deposit Insurance Corporation (“FDIC”) and other local jurisdictional limits. Restricted cash at December 31, 2020 and 2021 consists of cash held in escrow for purchases from a vendor [D] Accounts receivable Accounts receivable are recorded at the invoiced amount and do not bear interest. Amounts collected on trade accounts receivable are included in net cash provided by operating activities in the consolidated statements of cash flows. The Company maintains reserves against its accounts receivable for potential losses. Allowances for uncollectible accounts are estimated based on the Company’s periodic review of accounts receivable balances. In establishing the required allowance, management considers our customers’ financial condition, the amount of receivables in dispute, and the current receivables aging and current payment patterns. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. Accounts receivable are net of an allowance for doubtful accounts in the amount of $ 2,364 3,176 [E] Revenue recognition The Company and its subsidiaries generate revenue from sales of systems and products and from customer SaaS and hosting infrastructure fees. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods or providing services. Sales, value add, and other taxes the Company collects concurrently with revenue-producing activities are excluded from revenue. Incidental items that are immaterial in the context of the contract are recognized as expense. The expected costs associated with the Company’s base warranties continue to be recognized as expense when the products are sold (see Note 13). Revenue is recognized when performance obligations under the terms of a contract with our customer are satisfied. Product sales are recognized at a point in time when title transfers, when the products are shipped, or when control of the system is transferred to the customer, which usually is upon delivery of the system and when contractual performance obligations have been satisfied. For products which do not have stand-alone value to the customer separate from the SaaS services provided, the Company considers both hardware and SaaS services a bundled performance obligation. Under the applicable accounting guidance, all of the Company’s billings for equipment and the related cost for these systems are deferred, recorded, and classified as a current and long-term liability and a current and long-term asset, respectively. The deferred revenue and cost are recognized over the service contract life, ranging from one to five years, beginning at the time that a customer acknowledges acceptance of the equipment and service. The Company recognizes revenue for remotely hosted SaaS agreements and post-contract maintenance and support agreements beyond our standard warranties over the life of the contract. Revenue is recognized ratably over the service periods and the cost of providing these services is expensed as incurred. Amounts invoiced to customers which are not recognized as revenue are classified as deferred revenue and classified as short-term or long-term based upon the terms of future services to be delivered. Deferred revenue also includes prepayment of extended maintenance, hosting and support contracts. The Company earns other service revenues from installation services, training and technical support services which are short-term in nature and revenue for these services are recognized at the time of performance when the service is provided. The Company also derives revenue from leasing arrangements. Such arrangements provide for monthly payments covering product or system sale, maintenance, support and interest. These arrangements meet the criteria to be accounted for as sales-type leases. Accordingly, an asset is established for the “sales-type lease receivable” at the present value of the expected lease payments and revenue is deferred and recognized over the service contract, as described above. Maintenance revenues and interest income are recognized monthly over the lease term. The Company’s contracts with customers may include multiple performance obligations. For such arrangements, the Company allocates revenue to each performance obligation based on its relative standalone selling price. The Company generally determines standalone selling prices based on observable prices charged to customers or adjusted market assessment or using expected cost-plus margin when one is available. Adjusted market assessment price is determined based on overall pricing objectives taking into consideration market conditions and entity specific factors. The Company recognizes an asset for the incremental costs of obtaining the contract arising from the sales commissions to employees because the Company expects to recover those costs through future fees from the customers. The Company amortizes the asset over one to five years because the asset relates to the services transferred to the customer during the contract term of one to five years. The Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which the Company recognizes revenue at the amount to which the Company has the right to invoice for services performed. [F] Deferred costs Deferred product costs consist of Powerfleet for Logistics equipment costs deferred in accordance with our revenue recognition policy. The Company evaluates the realizability of the carrying amount of the deferred contract costs. To the extent the carrying value of the deferred contract costs exceed the contract revenue, an impairment loss will be recognized. [G] Inventory Inventories are stated at the lower of cost or net realizable value. Cost is determined using the “moving average” cost method or the first-in first-out (“FIFO”) method. Inventory consists of components, work in process and finished products Inventory valuation reserves are established in order to report inventories at the lower of cost or net realizable value in the consolidated balance sheet. The determination of inventory valuation reserves requires management to make estimates and judgments on the future salability of inventories. Valuation reserves for obsolete and slow-moving inventory are estimated based on assumptions of future sales forecasts, product life cycle expectations, the impact of new product introductions, production requirements, and specific identification of items, such as product discontinuance or engineering/material changes and by comparing the inventory levels to historical usage rates [H] Fixed assets and depreciation Fixed assets are recorded at cost, net of accumulated depreciation. Depreciation and amortization are recognized using the straight-line method over the estimated useful lives of the assets. The following table provides the range of estimated useful lives used for each asset type: SCHEDULE OF ESTIMATED USEFUL LIVES OF ASSET Useful Life (years) Computer software 3 5 Installed products 3 5 Computers and electronic equipment 3 10 Furniture and fixtures 5 7 Leasehold improvements Shorter of useful life or lease term [I] Long-lived assets Long-lived assets, which includes definite lived intangible assets and fixed assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is assessed by a comparison of the carrying amount of the assets to the future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets and would be charged to earnings. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. [J] Goodwill and intangibles Goodwill represents costs in excess of fair values assigned to the underlying net assets of acquired businesses. Goodwill and intangible assets deemed to have indefinite lives are not amortized and are tested for impairment on an annual basis and between annual tests whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Intangible assets other than goodwill are amortized over their useful lives unless the lives are determined to be indefinite. Intangible assets are carried at cost, less accumulated amortization. Intangible assets consist of trademarks and trade name, patents, customer relationships and other intangible assets. Goodwill is tested at the reporting unit level, which is defined as an operating segment or one level below the operating segment. The Company operates in one operating segment which is its only reporting unit. The Company tests its goodwill for impairment annually which is the first day of the Company’s fourth quarter or when an indicator of impairment exists, by comparing the fair value of the reporting unit to its carrying value In the evaluation of goodwill for impairment, the Company has the option to perform a qualitative assessment to determine whether further impairment testing is necessary or to perform a quantitative assessment by comparing the fair value of a reporting unit to its carrying amount, including goodwill. Under the qualitative assessment, an entity is not required to calculate the fair value of a reporting unit unless the entity determines that it is more likely than not that its fair value is less than its carrying amount. By eliminating “Step 2” from the goodwill impairment test, the quantitative analysis of goodwill will result in an impairment loss for the amount that the carrying value of the reporting unit exceeds its fair value which is limited to the total amount of goodwill allocated to the reporting unit. The Company performed a market-based quantitative assessment utilizing the guideline public company and guideline transaction approaches by comparing revenue and adjusted EBITDA multiples of similar sized companies and similar sized transactions. For the years ended December 31, 2019, 2020, and 2021, the Company did not incur an impairment charge. [K] Product warranties The Company typically provides a 1 – 3-year warranty on its products [L] Research and development Research and development costs are charged to expense as incurred and consists primarily of salaries and related expenses, supplies and contractor costs. Research and development costs were $ 8,540 10,597 11,058 [ M] Patent costs Cost incurred in connection with acquiring patent rights are charged to expense as incurred. [N] Concentrations of credit risk Financial instruments that potentially subject the Company and its subsidiaries to concentrations of credit risk consist principally of cash and cash equivalents, trade receivables and trade payables The Company’s cash and cash equivalents are invested primarily in deposits with major banks worldwide. Generally, these deposits may be redeemed upon demand and, therefore, bear low risk. Management believes that the financial institutions that hold the Company’s investments have a high credit rating. For the year ended December 31, 2021, there were no customers who generated revenues greater than 10% of the Company’s consolidated total revenues or generated greater than 10 For the year ended December 31, 2020, there were no customers who generated revenues greater than 10% of the Company’s consolidated total revenues or generated greater than 10 For the year ended December 31, 2019, one customer accounted for 20 [O] Benefit plan The Company maintains a retirement plan under Section 401(k) of the Internal Revenue Code, which covers all eligible employees. All employees with U.S. source income are eligible to participate in the plan immediately upon employment. The Company did not make any contributions to the plan during the years ended December 31, 2019, 2020 and 2021. [P] Severance pay The liability of the Company’s subsidiaries in Israel for severance pay is calculated pursuant to Israel’s Severance Pay Law 5273-1963 (the “Severance Law”) based on the most recent salary of the employees multiplied by the number of years of employment as of balance sheet date and are presented on an undiscounted basis (the “Shut Down Method”). Employees are entitled to one month’s salary for each year of employment, or a portion thereof. The liability for the Company and its subsidiaries in Israel is fully provided by monthly deposits with insurance policies and by accrual. The value of these policies is recorded as an asset in the Company’s balance sheet. The deposited funds may be withdrawn only upon the fulfillment of the obligation pursuant to the Severance Law or labor agreements. The value of the deposited funds is based on the cash surrendered value of these policies, and includes profits or losses accumulated to balance sheet date. Some of the Company’s employees are subject to Section 14 of the Severance Law and the General Approval of the Labor Minister dated June 30, 1998, issued in accordance to the said Section 14, mandating that upon termination of such employees’ employment, all the amounts accrued in their insurance policies shall be released to them. The severance pay liabilities and deposits covered by these plans are not reflected in the balance sheet as the severance pay risks have been irrevocably transferred to the severance funds. [Q] Stock-based compensation The Company accounts for stock-based employee compensation for all share-based payments, including grants of stock options and restricted stock, as an operating expense based on their fair values on grant date. The Company recorded stock-based compensation expense of $ 3,794 4,142 4,416 The Company estimates the fair value of share-based option awards on the grant date using an option pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service period in the Company’s consolidated statement of operations. The Company estimates forfeitures at the time of grant in order to estimate the amount of share-based awards that will ultimately vest. The estimate is based on the Company’s historical rates of forfeitures. Estimated forfeitures are revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. [R] Income taxes The Company uses the asset and liability method of accounting for deferred income taxes. Deferred income taxes are measured by applying enacted statutory rates to net operating loss carryforwards and to the differences between the financial reporting and tax bases of assets and liabilities. Deferred tax assets are reduced, if necessary, by a valuation allowance if it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company recognizes uncertainty in income taxes in the financial statements using a recognition threshold and measurement attribute of a tax position taken or expected to be taken in a tax return. The Company applies the “more-likely-than-not” recognition threshold to all tax positions, commencing at the adoption date of the applicable accounting guidance, which resulted in no unrecognized tax benefits as of such date. Additionally, there have been no unrecognized tax benefits subsequent to adoption. The Company has opted to classify interest and penalties that would accrue according to the provisions of relevant tax law as selling, general, and administrative expenses and incomes taxes, respectively, in the consolidated statement of operations. For the years ended December 31, 2019, 2020 and 2021, interest and penalties were immaterial. [S] Fair value of financial instruments The Company utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those levels ● Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities ● Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. ● Level 3: Unobservable inputs that reflect the reporting entity’s estimates of market participant assumptions The Company’s cash and cash equivalents and investments in securities are carried at fair value. The carrying value of financing receivables approximates fair value due to the interest rate implicit in the instruments approximating current market rates. The carrying value of accounts receivables, accounts payable and accrued liabilities and short term bank debt approximates their fair values due to the short period to maturity of these instruments. The fair value of the Company’s long term debt is based on observable relevant market information and future cash flows discounted at current rates, which are Level 2 measurements. SCHEDULE OF FAIR VALUE OF FINANCIAL INSTRUMENTS December 31, 2021 Carrying Amount Fair Value Long term debt $ 24,224 $ 24,224 [T] Advertising and marketing expense Advertising and marketing costs are expensed as incurred. Advertising and marketing expense for the years ended December 31, 2019, 2020 and 2021 amounted to $ 1,228 1,022 1,185 [U] Foreign currency translation The Company’s reporting currency is the U.S dollar (“USD”). For businesses where the majority of the revenues are generated in USD or linked to the USD and a substantial portion of the costs are incurred in USD, the Company’s management believes that the USD is the primary currency of the economic environment and thus their functional currency. Due to the fact that Argentina has been determined to be highly inflationary, the financial statements of our subsidiary in Argentina have been remeasured as if its functional currency was the USD. The Company also has foreign operations where the functional currency is the local currency. For these operations, assets and liabilities are translated using the end-of-period exchange rates and revenues, expenses and cash flows are translated using average rates of exchange for the period. Equity is translated at the rate of exchange at the date of the equity transaction. Translation adjustments are recognized in stockholders’ equity as a component of accumulated other comprehensive income (loss). Net translation gains (losses) from the translation of foreign currency are $ 653 , $ 134 and $ (8) at December 31, 2019, 2020 and 2021, respectively, which are included in comprehensive loss in the Consolidated Statement of Changes in Stockholders’ Equity. Foreign currency translation gains and losses related to operational expenses denominated in a currency other than the functional currency are included in determining net income or loss. Foreign currency translation gains (losses) for the years ended December 31, 2019, 2020 and 2021 of $ (42) 148 (128) (425) (2,137) 810 [ V] Commitments and contingencies From time to time, the Company is involved in various litigation matters involving claims incidental to its business and acquisitions, including employment matters, acquisition related claims, patent infringement and contractual matters, among other issues. While the outcome of any such litigation matters cannot be predicted with certainty, management currently believes that the outcome of these proceedings, including the matters described below, either individually or in the aggregate, will not have a material adverse effect on its business, results of operations or financial condition. The Company records reserves related to legal matters when losses related to such litigation or contingencies are both probable and reasonably estimable. [W] Recently issued accounting pronouncements In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2019-12, Simplifying the Accounting for Income Taxes which removes certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, the recognition of deferred tax liabilities for outside basis differences and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. The guidance is generally effective as of January 1, 2021, with early adoption permitted. The adoption of the standard did not have an impact on the Company’s consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments,” which amends the guidance on measuring credit losses on financial assets held at amortized cost. The amendment is intended to address the issue that the previous “incurred loss” methodology was restrictive for an entity’s ability to record credit losses based on not yet meeting the “probable” threshold. The new language will require these assets to be valued at amortized cost presented at the net amount expected to be collected with a valuation provision. This updated standard is effective for fiscal years beginning after December 15, 2021. The Company is currently evaluating the impact of this ASU on the consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment,” which simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. Under the amendments in ASU 2017-04, an entity should recognize an impairment charge for the amount by which the carrying amount of a reporting unit exceeds its fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The updated guidance requires a prospective adoption. The adoption of this standard did not have an impact on the Company’s consolidated financial statements. [Y] Reclassifications Certain prior amounts have been reclassified to conform with the current year presentation for comparative purposes. These reclassifications had no effect on the previously reported results of operations. |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITIONS | NOTE 3 - ACQUISITIONS Pointer Transactions On October 3, 2019, the Company completed the Transactions, as a result of which I.D. Systems, Inc. (“I.D. Systems”) and PowerFleet Israel each became direct wholly-owned subsidiaries of the Company and Pointer became an indirect, wholly-owned subsidiary of the Company. Prior to the Transactions, PowerFleet, Inc. had no material assets, did not operate any business and did not conduct any activities, other than those incidental to its formation and the Transactions. I.D. Systems was determined to be the accounting acquirer in the Transactions. As a result, the historical financial statements of I.D. Systems for the periods prior to the Transactions are considered to be the historical financial statements of the Company and the results of Pointer have been included in the Company’s consolidated financial statements from the date of the Transactions. The purchase method of accounting in accordance with ASC805, Business Combinations The following table summarizes the final purchase price allocation based on estimated fair values of the net assets acquired at the acquisition date: SCHEDULE OF PURCHASE PRICE ALLOCATION ON NET ASSETS ACQUIRED Accounts receivable $ 19,701 Inventory 8,666 Other assets 32,073 Customer relationships 15,610 Trademark and tradename 6,096 Technology 10,911 Patents Goodwill (a) 72,918 Less: Current liabilities assumed (21,055 ) Less: Non current liabilities assumed (14,504 ) Net assets acquired $ 130,416 (a) The goodwill is not deductible for tax purposes. The results of operations of Pointer have been included in the consolidated statement of operations as of the effective date of the Transactions. The following revenue and operating income of Pointer are included in the Company’s consolidated results of operations for the year ended December 31, 2019: SCHEDULE OF PRO FORMA REVENUE AND EARNINGS Revenues $ 18,594 Operating loss $ (1,665 ) CarrierWeb Acquisitions On January 30, 2019, the Company completed the acquisition of substantially all of the assets of CarrierWeb, L.L.C. and on July 30, 2019, the Company completed the acquisition of substantially all of the assets of CarrierWeb Services Ltd. (collectively, the “CarrierWeb Acquisitions”). The purchase method of accounting in accordance with ASC805, Business Combinations The following table summarizes the final purchase price allocation of the CarrierWeb Acquisitions based on the fair values of the net assets acquired at the acquisition date: SCHEDULE OF PURCHASE PRICE ALLOCATION ON NET ASSETS ACQUIRED Accounts receivable $ 192 Inventory 200 Other assets 26 Customer relationships 531 Trademark and tradename 90 Patents 628 Goodwill (a) 3,108 Net assets acquired $ 4,775 (a) The goodwill is fully deductible for tax purposes. The results of operations from each of the CarrierWeb Acquisitions have been included in the consolidated statement of operations as of the effective date of each such acquisition. For the year ended December 31, 2019, the CarrierWeb Acquisitions contributed an aggregate of approximately $ 3,809 The following table represents the combined pro forma revenue and earnings for the year ended December 31, 2019: SCHEDULE OF PRO FORMA REVENUE AND EARNINGS Year Ended December 31, 2019 (b) Historical Pro Forma Combined (Unaudited) Revenues $ 81,915 $ 135,126 Operating loss (10,183) (10,833 ) Net loss per share - basic and diluted $ (0.59 ) $ (0.66 ) (b) Includes pro forma results for the Transactions. Pro forma results for the CarrierWeb Acquisitions are impracticable to provide as the acquisition was a carve-out from a bankruptcy transaction. The combined pro forma revenue and earnings for the year ended 2019 for the Transactions were prepared as though such transactions had occurred as of January 1, 2019. The pro forma results do not include any anticipated cost synergies or other effects of the planned integration of Pointer. This summary is not necessarily indicative of what the results of operations would have been had the Transactions occurred during such period, nor does it purport to represent results of operations for any future periods. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE RECOGNITION | NOTE 4 - REVENUE RECOGNITION The following table presents the Company’s revenues disaggregated by revenue source for the years ended December 31, 2019, 2020 and 2021. SCHEDULE OF REVENUE DISAGGREGATED BY REVENUE SOURCE Year Ended December 31, 2019 2020 2021 Products $ 45,416 $ 45,651 $ 52,981 Services 36,499 67,942 73,227 $ 81,915 $ 113,593 $ 126,208 The balances of contract assets and contract liabilities from contracts with customers are as follows as of December 31, 2020 and 2021 are as follows: SCHEDULE OF DEFERRED REVENUE Year Ended December 31, 2020 2021 Assets: Deferred contract costs $ 2,157 $ 3,045 Deferred costs $ 5,361 $ 2,011 Liabilities: Deferred revenue- services (1) $ 6,578 $ 8,401 Deferred revenue - products (1) 6,767 2,546 13,345 10,947 Less: Deferred revenue current portion (7,339 ) (6,519 ) Deferred revenue long term $ 6,006 $ 4,428 (1) The Company record deferred revenues when cash payments are received or due in advance of the Company’s performance. For the years ended December 31, 2020 and 2021, the Company recognized revenue of $ 10,242 10,249 |
PREPAID EXPENSES AND OTHER ASSE
PREPAID EXPENSES AND OTHER ASSETS | 12 Months Ended |
Dec. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
PREPAID EXPENSES AND OTHER ASSETS | NOTE 5 – PREPAID EXPENSES AND OTHER ASSETS Prepaid expenses and other current assets consist of the following: SCHEDULE OF PREPAID EXPENSES AND OTHER CURRENT ASSETS 2020 2021 Year Ended December 31, 2020 2021 Finance receivables, current $ 692 $ 786 Prepaid expenses 2,979 4,580 Contract assets 767 1,124 Other current assets 1,746 2,561 Prepaid expenses and other current assets $ 6,184 $ 9,051 |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 6 - INVENTORIES Inventories are stated at the lower of cost or net realizable value. Cost is determined using the “moving average” cost method or the first-in first-out (FIFO) method. Inventory consists of components, work in process and finished products. Inventories are shown net of valuation reserves of $ 515 260 Inventories consist of the following: SCHEDULE OF INVENTORIES 2020 2021 Year Ended December 31, 2020 2021 Components $ 7,697 $ 11,137 Work in process 237 699 Finished goods, net 4,939 6,407 Inventory, Net $ 12,873 $ 18,243 |
FIXED ASSETS
FIXED ASSETS | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
FIXED ASSETS | NOTE 7 - FIXED ASSETS Fixed assets are stated at cost, less accumulated depreciation and amortization, and are summarized as follows: SCHEDULE OF FIXED ASSETS Year Ended December 31, 2020 2021 Installed products $ 4,174 $ 6,190 Computer software 5,882 6,732 Computer and electronic equipment 5,273 5,688 Furniture and fixtures 1,828 2,246 Leasehold improvements 1,353 1,445 18,510 22,301 Accumulated depreciation and amortization (9,706 ) (13,313 ) $ 8,804 $ 8,988 Depreciation and amortization expense for the years ended December 31, 2019, 2020 and 2021 was $ 1,380 3,097 3,399 528 515 426 |
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS AND GOODWILL | NOTE 8 - INTANGIBLE ASSETS AND GOODWILL The following table summarizes identifiable intangible assets of the Company as of December 31, 2021 and 2020: SCHEDULE OF INTANGIBLE ASSETS December 31, 2021 Useful Lives (In Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortized: Customer relationships 9 12 $ 19,264 $ (4,356 ) $ 14,908 Trademark and tradename 3 15 7,553 (2,096 ) 5,457 Patents 7 11 628 (262 ) 366 Technology 7 10,911 (5,709 ) 5,202 Favorable contract interest 4 388 (388 ) - Covenant not to compete 5 208 (184 ) 24 38,952 (12,995 ) 25,957 Unamortized: Customer List 104 - 104 Trademark and tradename 61 - 61 165 - 165 Total $ 39,117 $ (12,995 ) $ 26,122 December 31, 2020 Useful Lives (In Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortized: Customer relationships 9 12 $ 19,264 $ (2,732 ) $ 16,532 Trademark and tradename 3 15 7,553 (1,292 ) 6,261 Patents 7 11 2,117 (1,661 ) 456 Technology 7 10,911 (3,172 ) 7,739 Favorable contract interest 4 388 (331 ) 57 Covenant not to compete 5 208 (142 ) 66 40,441 (9,330 ) 31,111 Unamortized: Customer List 104 - 104 Trademark and tradename 61 - 61 165 - 165 Total $ 40,606 $ (9,330 ) $ 31,276 COVID-19 continues to adversely impact the broader global economy and has caused significant volatility in financial markets. If there is a lack of recovery or further global softening in certain markets, or a sustained decline in the value of the Company’s common stock, the Company may conclude that indicators of impairment exist and would then be required to calculate whether or not an impairment exists for its goodwill, other intangibles, and long-lived assets, the results of which could result in material impairment charges. The Company tests goodwill and other indefinite lives intangible assets on an annual basis in the fourth quarter and more frequently if the Company believes indicators of impairment exists. As of December 31, 2020, and 2021, the Company determined that no impairment existed to the goodwill, customer list and trademark and trade name of its acquired intangibles. At December 31, 2021, the weighted-average amortization period for the intangible assets was 9.1 years. At December 31, 2021, the weighted-average amortization periods for customer relationships, trademarks and trade names, patents, technology, favorable contract interests and covenant not to compete were 11.9 , 9.6 , 7.0 , 4.3 , 4.0 and 5.0 years, respectively. Amortization expense for the years ended December 31, 2019, 2020 and 2021 was $ 1,967 5,328 5,154 SCHEDULE OF FINITE-LIVED INTANGIBLE ASSETS, FUTURE AMORTIZATION EXPENSE Year ending December 31: 2022 $ 5,080 2023 5,035 2024 2,622 2025 2,495 2026 2,413 Thereafter 8,312 Finite-Lived Intangible Assets, Net, Total $ 25,957 The change in goodwill from January 1, 2020 to December 31, 2021 is as follows: SCHEDULE OF CHANGES IN GOODWILL Balance as of January 1, 2020 $ 89,068 PPA measurement period adjustment (a) (5,724 ) Balance as of December 31, 2020 83,344 Other 143 Balance as of December 31, 2021 $ 83,487 a) After considering all information related to the finalization of income taxes the Company reduced certain provisionally recorded deferred tax liabilities due to the new information with a corresponding decrease in the Pointer acquisition goodwill b) |
NET LOSS PER SHARE
NET LOSS PER SHARE | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
NET LOSS PER SHARE | NOTE 9 - NET LOSS PER SHARE SCHEDULE OF NET LOSS PER SHARE BASIC AND DILUTED December 31, Basic and diluted loss per share 2019 2020 2021 Net loss attributable to common stockholders $ (12,047 ) $ (13,606 ) $ (18,072 ) Weighted-average common share outstanding - basic and diluted 20,476 29,703 34,571 Net loss attributable to common stockholders - basic and diluted $ (0.59 ) $ (0.46 ) $ (0.52 ) Basic loss per share is calculated by dividing net loss attributable to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted loss per share reflects the potential dilution assuming common shares were issued upon the exercise of outstanding options and the proceeds thereof were used to purchase outstanding common shares. Dilutive potential common shares include outstanding stock options, warrants and restricted stock and performance share awards. We include participating securities (unvested share-based payment awards and equivalents that contain non-forfeitable rights to dividends or dividend equivalents) in the computation of EPS pursuant to the two-class method. Our participating securities consist solely of preferred stock, which have contractual participation rights equivalent to those of stockholders of unrestricted common stock. The two-class method of computing earnings per share is an allocation method that calculates earnings per share for common stock and participating securities. During periods of net loss, no effect is given to the participating securities because they do not share in the losses of the Company. For the years ended December 31, 2019, 2020 and 2021, the basic and diluted weighted-average shares outstanding are the same, since the effect from the potential exercise of outstanding stock options, conversion of preferred stock and vesting of restricted stock and restricted stock units totaling 12,865 11,998 11,628 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | NOTE 10 - STOCK-BASED COMPENSATION The Company’s stockholders have approved the Company’s 2018 Incentive Plan (as amended the “2018 Plan”) pursuant to which the Company may grant stock options, restricted stock and other equity-based awards with respect to up to an aggregate of 6,500 four five years 2,163 The 2018 Plan is administered by the Compensation Committee of the Company’s Board of Directors, which has the authority to determine, among other things, the term during which an option may be exercised (not more than 10 The Company recognizes all employee share-based payments in the statement of operations as an operating expense, based on their fair values on the applicable grant date. In connection with the Company’s acquisition of Pointer, the Company previously approved the grants of options to purchase 350,000 150,000 350,000 150,000 6.28 6.00 In response to the impact of COVID-19, the Board terminated and cancelled the Original Bonus Options and approved the following grants to replace the Original Bonus Options: (i) options to purchase 350,000 150,000 6.28 vest and become exercisable in full on December 31, 2022 if the volume weighted average price of the Company’s common stock during a consecutive 30 trading day period (the “30 Day VWAP”) reaches $12.00 at any point prior to December 31, 2022 350,000 150,000 6.00 vest and become exercisable immediately upon the Company achieving a 30 Day VWAP of $10.00 In connection with Mr. David Mahlab’s retirement from his role as the Chief Executive Officer International of the Company, the Company modified the vesting and exercise period of all unvested restricted stock, stock options and restricted stock units previously granted to Mr. Mahlab. Due to the modification of the terms of Mr. Mahlab’s stock options, restricted stock and restricted stock units, the Company recognized additional stock-based compensation expense of $ 1,261 0 278 for the years ended December 31, 2019, December 31, 2020 and December 31, 2021 respectively. [A] Stock options: A summary of the status of the Company’s stock options as of December 31, 2019, 2020 and 2021 and changes during the years then ended, is presented below: SCHEDULE OF STOCK OPTIONS ACTIVITY 2019 2020 2021 Number of Shares Weighted- Average Exercise Price Number of Shares Weighted- Average Exercise Price Number of Shares Weighted- Average Exercise Price Outstanding at beginning of year 1,220 $ 5.37 4,078 $ 5.79 3,624 $ 5.85 Share-based payments assumed 127 4.35 - 0.00 - - Granted 2,829 5.99 1,230 6.08 120 7.77 Exercised (59 ) 3.79 (199 ) 4.72 (156 ) 5.60 Forfeited or expired (39 ) 6.22 (1,485 ) 6.02 (118 ) 6.34 Outstanding at end of year 4,078 $ 5.79 3,624 $ 5.85 3,470 $ 5.91 Exercisable at end of year 847 $ 5.71 1,247 $ 5.60 1,546 $ 5.67 The following table summarizes information about stock options at December 31, 2021. SUMMARY OF STOCK OPTION INFORMATION BY EXERCISE PRICE RANGE Options Outstanding Options Exercisable Exercise Prices ($) Number Outstanding Weighted - Average Remaining Contractual Life in Years Weighted- Average Exercise Price Number Outstanding Weighted - Average Exercise Price 2.33 3.74 16 2 $ 2 16 $ 2 3.75 5.15 290 5 5 222 5 5.16 6.56 3,054 7 6 1,308 6 6.57 7.96 110 9 8 - - 3,470 7 $ 6 1,546 $ 6 SCHEDULE OF OPTIONS OUTSTANDING AND EXERCISABLE As of December 31, 2021 Aggregate Weighted - Options outstanding $ 92 7 Options exercisable $ 77 6 The fair value of each option grant on the date of grant is estimated using the Black-Scholes option-pricing model reflecting the following weighted-average assumptions: SCHEDULE OF FAIR VALUE STOCK OPTION ASSUMPTIONS Year Ended December 31, 2019 2020 2021 Expected volatility 42.1 % 47.1 % 50.2 % Expected life of options 6.7 6.3 6.5 Risk free interest rate 1.64 % 0.93 % 0.69 % Dividend yield 0 % 0 % 0 % Weighted-average fair value of options granted during year $ 2.20 $ 2.69 $ 3.81 Expected volatility is based on historical volatility of the Company’s common stock and the expected life of options is based on historical data with respect to employee exercise periods. The Company valued the New Signing Options and the New Closing Options market-based performance stock option awards using a Monte Carlo simulation model using a daily price forecast over ten years until expiration utilizing Geometric Brownian Motion that considers a variety of factors including, but not limited to, the Company’s common stock price, risk-free rate ( 0.70 47 6 1.27 For the years ended December 31, 2019, 2020 and 2021, the Company recorded $ 1,516 1,587 1,684 The fair value of options vested during the years ended December 31, 2019, 2020 and 2021 was $ 476 , $ 1,974 , and $ 1,201 , respectively. The total intrinsic value of options exercised during the years ended December 31, 2019, 2020 and 2021 was $ 119 , $ 313 , 483 , respectively. As of December 31, 2021, there was $ 2,741 3.69 The Company estimates forfeitures at the time of valuation and reduces expense ratably over the vesting period. This estimate is adjusted periodically based on the extent to which actual forfeitures differ, or are expected to differ, from the previous estimate. [B] Restricted Stock Awards: The Company grants restricted stock to employees, whereby the employees are contractually restricted from transferring the shares until they are vested. The stock is unvested at the time of grant and, upon vesting, there are no legal restrictions on the stock. The fair value of each share is based on the Company’s closing stock price on the date of the grant. A summary of the non-vested shares for the years ended December 31, 2019, 2020 and 2021 is as follows: SCHEDULE OF NON-VESTED RESTRICTED STOCK ACTIVITY Number of Non-Vested Shares Weighted - Average Grant Date Fair Value Non-vested, at January 1, 2019 568 6.65 Granted 625 5.82 Vested (276 ) 6.40 Forfeited or expired (40 ) 5.88 Non-vested, at December 31, 2019 877 6.17 Granted 463 4.88 Vested (389 ) 6.01 Forfeited or expired (145 ) 6.01 Non-vested, at December 31, 2020 806 5.54 Granted 450 7.63 Vested (537 ) 5.35 Forfeited or expired (90 ) 6.51 Non-vested, at December 31, 2021 629 7.06 For the years ended December 31, 2019, 2020 and 2021, the Company recorded $ 2,061 2,272 2,529 3,321 2.47 [C] Restricted Stock Units: The Company also grants restricted stock units (“RSUs”) to employees. The following table summarizes the activity relating to the Company’s RSUs for the years ended December 31, 2019, 2020 and 2021: SCHEDULE OF NON-VESTED RESTRICTED STOCK ACTIVITY Number of Restricted Stock Units Weighted - Average Grant Date Fair Value - - Pointer share-based payments assumed 260 $ 5.60 Vested (7 ) 5.60 Forfeited or expired - Restricted stock-units, non-vested December 31, 2019 253 $ 5.60 Vested (148 ) 5.60 Forfeited or expired (30 ) 5.60 Restricted stock-units, non-vested, December 31, 2020 75 $ 5.60 Vested (35 ) 5.60 Forfeited or expired (4 ) 5.60 Restricted stock-units, non-vested, December 31, 2021 36 $ 5.60 For the years ended December 31, 2019, 2020 and 2021 the Company recorded $ 217 283 203 50 0.50 |
SHORT-TERM BANK DEBT AND LONG-T
SHORT-TERM BANK DEBT AND LONG-TERM DEBT | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
SHORT-TERM BANK DEBT AND LONG-TERM DEBT | NOTE 11 – SHORT-TERM BANK DEBT AND LONG-TERM DEBT SCHEDULE OF LONG TERM DEBT 2020 2021 Year Ended December 31, 2020 2021 Short-term bank debt $ 280 $ - Current maturities of long-term debt $ 5,299 $ 6,114 Long term debt - less current maturities $ 23,179 $ 18,110 Long term debt In connection with the Transactions, PowerFleet Israel incurred $ 30,000 in term loan borrowings on the Closing Date under the Credit Agreement, pursuant to which Hapoalim agreed to provide PowerFleet Israel with two senior secured term loan facilities in an aggregate principal amount of $ 30,000 (comprised of two facilities in the aggregate principal amount of $ 20,000 and $ 10,000 , respectively (the “Term A Facility” and “Term B Facility”, respectively, and collectively, the “Term Facilities”)) and a five-year revolving credit facility (the “Revolving Facility”) to Pointer in an aggregate principal amount of $ 10,000 (collectively, the “Credit Facilities”). The Credit Facilities will mature on the date that is five years from the Closing Date. The indicative interest rate provided for the Term Facilities in the original Credit Agreement was approximately 4.73 % for the Term A Facility and 5.89 % for the Term B Facility. The interest rate for the Revolving Facility is, with respect to NIS-denominated loans, Hapoalim’s prime rate + 2.5%, and with respect to US dollar-denominated loans, LIBOR + 4.6%. In addition, the Company agreed to pay a 1% commitment fee on the unutilized and uncancelled availability under the Revolving Facility . The Credit Facilities are secured by the shares held by PowerFleet Israel in Pointer and by Pointer over all of its assets. The original Credit Agreement includes customary representations, warranties, affirmative covenants, negative covenants (including the following financial covenants, tested quarterly: Pointer’s net debt to EBITDA; Pointer’s net debt to working capital; minimum equity of PowerFleet Israel; PowerFleet Israel equity to total assets; PowerFleet Israel net debt to EBITDA; and Pointer EBITDA to current payments and events of default. On August 23, 2021, PowerFleet Israel and Pointer (the “Borrowers”) entered into an amendment (the “Amendment”), effective as of August 1, 2021, to the Credit Agreement with Hapoalim. The Amendment memorializes the agreements between the Borrowers and Hapoalim regarding a reduction in the interest rates of the two Term Facilities. Pursuant to the Amendment, commencing as of November 12, 2020, the interest rate with respect to the Term A Facility was reduced to a fixed rate of 3.65 % per annum and the interest rate with respect to the Term B Facility was reduced to a fixed rate of 4.5 % per annum. The Amendment also provides, among other things, for (i) a reduction in the credit allocation fee on undrawn and uncancelled amounts of the Revolving Facility from 1 % to 0.5 % per annum, (ii) removal of the requirement that PowerFleet Israel maintain $ 3,000 on deposit in a separate reserve fund, and (iii) modifications to certain of the affirmative and negative covenants, including a financial covenant regarding the ratio of the Borrowers’ debt levels to Pointer’s EBITDA. The Company is in compliance with the covenants as of December 31, 2021. In connection with the Credit Facilities, the Company incurred debt issuance costs of $ 742 18 31 290 379 1,451 1,078 Scheduled maturities of the long-term debt as of December 31, 2021, are as follows: SCHEDULE OF MATURITIES OF LONG TERM DEBT Year ending December 31: 2022 $ 6,114 2023 5,200 2024 12,910 Long term debt 24,224 Less: Current Portion 6,114 Total $ 18,110 The Term B Facility is not subject to amortization over the life of the loan and instead the original principal amount is to be due in one installment on the fifth anniversary of the date of the consummation of the Transactions. |
ACCOUNTS PAYABLE AND ACCRUED EX
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | NOTE 12 - ACCOUNTS PAYABLE AND ACCRUED EXPENSES Accounts payable and accrued expenses consist of the following: SCHEDULE OF ACCOUNTS PAYABLE AND ACCRUED LIABILITIES 2020 2021 Year Ended December 31, 2020 2021 Accounts payable $ 9,877 $ 17,748 Accrued warranty 705 1,146 Accrued compensation 5,581 6,644 Government authorities 3,047 2,080 Other current liabilities 1,015 1,397 Accounts payable and accrued expenses $ 20,225 $ 29,015 The Company’s products are warranted against defects in materials and workmanship for a period of 1-3 years from the date of acceptance of the product by the customer The customers may purchase an extended warranty providing coverage up to a maximum of 60 months The following table summarizes warranty activity during the years ended December 31, 2020 and 2021: SCHEDULE OF PRODUCT WARRANTY LIABILITY Year Ended December 31, 2020 2021 Accrued warranty reserve, beginning of year $ 742 $ 807 Accrual for product warranties issued 784 1,335 Product replacements and other warranty expenditures (667 ) (411 ) Expiration of warranties (52 ) (398 ) Accrued warranty reserve, end of period (a) $ 807 $ 1,333 (a) Includes accrued warranty included in other long-term liabilities at December 31, 2020 and 2021 of $ 102 187 |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2021 | |
Leases | |
LEASES | NOTE 13 - LEASES The Company has operating leases for office space and office equipment. The Company’s leases have remaining lease terms of one year seven years options to extend the lease term for up to five years The Company has lease agreements which are classified as short-term in nature. These leases meet the criteria for operating lease classification. Lease cost associated with the short-term leases are included in selling, general and administrative expenses on the Company’s condensed consolidated statements of operations during years ended December 31, 2019, 2020, and 2021. Components of lease expense are as follows: SCHEDULE OF COMPONENTS OF LEASE EXPENSE Year Ended December 31, 2020 Year Ended December 31, 2021 Short term lease cost: $ 584 $ 563 Supplemental cash flow information and non-cash activity related to the Company’s operating leases are as follows: SCHEDULE OF CASH FLOW INFORMATION AND NON-CASH ACTIVITY OF OPERATING LEASES Year Ended December 31, 2020 Year Ended December 31, 2021 Non-cash activity: Right-of-use assets obtained in exchange for lease obligations $ 4,822 $ 2,695 Weighted-average remaining lease term and discount rate for the Company’s operating leases are as follows: SCHEDULE OF WEIGHTED AVERAGE REMAINING LEASE TERM AND DISCOUNT RATE December 31, 2021 Weighted-average remaining lease term (in years) 3.5 Weighted-average discount rate 4.5 % Scheduled maturities of operating lease liabilities outstanding as of December 31, 2021 are as follows: SCHEDULED MATURITIES OF OPERATING LEASE LIABILITIES Year ending December 31: 2022 $ 3,034 2023 2,620 2024 1,920 2025 1,780 2026 744 Thereafter 959 Total lease payments 11,057 Less: Imputed interest (1,050 ) Present value of lease liabilities $ 10,007 |
STOCKHOLDERS_ EQUITY
STOCKHOLDERS’ EQUITY | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
STOCKHOLDERS’ EQUITY | NOTE 14 - STOCKHOLDERS’ EQUITY [A] Public Offering: On February 1, 2021 the Company closed an underwritten public offering of 4,428 28,800 [B] ATM Offering: On May 14, 2020, we entered into an equity distribution agreement (the “Sales Agreement”) with Canaccord, pursuant to which we could offer and sell, from time to time through an “at-the-market offering” program, with Canaccord as sales agent, shares of our common stock having an aggregate offering price of up to $ 25,000 3.0 810 4,000 125 [C] Redeemable Preferred stock: The Company is authorized to issue 150 0.01 100 50 Series A Preferred Stock In connection with the completion of the Transactions, on October 3, 2019, the Company issued 50 1 0 Liquidation The Series A Preferred Stock has a liquidation preference equal to the greater of (i) the original issuance price of $ 1,000 Dividends Holders of Series A Preferred Stock are entitled to receive cumulative dividends at a minimum rate of 7.5 17.5 0 4,112 0 0 Voting; Consent Rights The holders of Series A Preferred Stock will be given notice by the Company of any meeting of stockholders or action to be taken by written consent in lieu of a meeting of stockholders as to which the holders of common stock are given notice at the same time as provided in, and in accordance with, the Company’s Amended and Restated Bylaws. Except as required by applicable law or as otherwise specifically set forth in the Charter, the holders of Series A Preferred Stock are not entitled to vote on any matter presented to the Company’s stockholders unless and until any holder of Series A Preferred Stock provides written notification to the Company that such holder is electing, on behalf of all holders of Series A Preferred Stock, to activate their voting rights and in doing so rendering the Series A Preferred Stock voting capital stock of the Company (such notice, a “Series A Voting Activation Notice”). From and after the delivery of a Series A Voting Activation Notice, all holders of the Series A Preferred Stock will be entitled to vote with the holders of common stock as a single class on an as-converted basis (provided, however, that any holder of Series A Preferred Stock shall not be entitled to cast votes for the number of shares of common stock issuable upon conversion of such shares of Series A Preferred Stock held by such holder that exceeds the quotient of (1) the aggregate Series A Issue Price for such shares of Series A Preferred Stock divided by (2) $5.57 (subject to adjustment for stock splits, stock dividends, combinations, reclassifications and similar events, as applicable)). So long as shares of Series A Preferred Stock are outstanding and convertible into shares of common stock that represent at least 10% of the voting power of the common stock, or the Investors or their affiliates continue to hold at least 33% of the aggregate amount of Series A Preferred Stock issued to the Investors on the Original Issuance Date, the consent of the holders of at least a majority of the outstanding shares of Series A Preferred Stock will be necessary for the Company to, among other things, (i) liquidate the Company or any operating subsidiary or effect any deemed liquidation event (as such term is defined in the Charter), except for a deemed liquidation event in which the holders of Series A Preferred Stock receive an amount in cash not less than the Redemption Price (as defined below), (ii) amend the Company’s organizational documents in a manner that adversely affects the Series A Preferred Stock, (iii) issue any securities that are senior to, or equal in priority with, the Series A Preferred Stock or issue additional shares of Series A Preferred Stock to any person other than the Investors or their affiliates, (iv) incur indebtedness above the agreed-upon threshold, (v) change the size of the Company’s board of directors to a number other than seven, or (vi) enter into certain affiliated arrangements or transactions . Redemption At any time, each holder of Series A Preferred Stock may elect to convert each share of such holder’s then-outstanding Series A Preferred Stock into the number of shares of the Company’s common stock equal to the quotient of (x) the Series A Issue Price, plus any accrued and unpaid dividends, divided by (y) the Series A Conversion Price in effect at the time of conversion. The Series A Conversion Price is initially equal to $ 7.319 At any time after the third anniversary of the Original Issuance Date, subject to certain conditions, the Company may redeem the Series A Preferred Stock for an amount per share, equal to the greater of (i) the product of (x) 1.5 multiplied by (y) the sum of the Series A Issue Price, plus all accrued and unpaid dividends and (ii) the product of (x) the number of shares of common stock issuable upon conversion of such Series A Preferred Stock multiplied by (y) the volume weighted average price of the common stock during the 30 consecutive trading day period ending on the trading date immediately prior to the date of such redemption notice or, if calculated in connection with a deemed liquidation event, the value ascribed to a share of common stock in such deemed liquidation event (the “Redemption Price”) Further, at any time (i) after the 66-month anniversary of the Original Issuance Date, (ii) following delivery of a mandatory conversion notice by us, or (iii) upon a deemed liquidation event, subject to Delaware law governing distributions to stockholders, the holders of the Series A Preferred Stock may elect to require us to redeem all or any portion of the outstanding shares of Series A Preferred Stock for an amount per share equal to the Redemption Price. On June 9, 2021, the Company entered into a preferred stock redemption right agreement (the “Redemption Right Agreement”) with the Investors, pursuant to which the Company had the right to redeem 10 shares of Series A Preferred Stock at a price of $ 1,450 per share plus all accrued and unpaid dividends, to be paid in cash. The Company did not exercise its redemption right and the Redemption Right Agreement automatically terminated on October 1, 2021. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | NOTE 15 - ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Comprehensive income (loss) includes net loss and unrealized gains or losses on available-for-sale investments and foreign currency translation gains and losses. Cumulative unrealized gains and losses on available-for-sale investments are reflected as accumulated other comprehensive loss in stockholders’ equity on the Company’s Consolidated Balance Sheets. The accumulated balances for each classification of other comprehensive income (loss) are as follows: SCHEDULE OF ACCUMULATED OTHER COMPREHENSIVE LOSS Foreign currency translation adjustment Unrealized gain (losses) on investments Accumulated other comprehensive income Balance at January 1, 2019 $ (388 ) $ (47 ) $ (435 ) Net current period change 653 47 700 Balance at December 31, 2019 $ 265 $ - $ 265 Net current period change 134 - 134 Balance at December 31, 2020 399 - 399 Net current period change (8 ) - (8 ) Balance at December 31, 2021 $ 391 $ - $ 391 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | NOTE 16 – SEGMENT INFORMATION The Company operates in one reportable segment, wireless IoT asset management. The following table summarizes revenues on a percentage basis by geographic region. SCHEDULE OF REVENUES AND LONG LIVED ASSETS BY GEOGRAPHICAL REGION Year Ended December 31, 2019 2020 2021 United States $ 60,544 $ 46,047 $ 50,844 Israel 9,650 38,719 44,849 Other 11,721 28,827 30,515 $ 81,915 $ 113,593 $ 126,208 Year Ended December 31, 2019 2020 2021 Long lived assets by geographic region: United States $ 1,931 $ 1,425 $ 1,123 Israel 2,285 3,282 3,675 Other 4,023 4,097 4,190 $ 8,240 $ 8,804 $ 8,988 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 17 - INCOME TAXES Loss before income taxes consists of the following: SCHEDULE OF LOSS BEFORE INCOME TAXES 2019 2020 2021 Year Ended December 31, 2019 2020 2021 U.S. operations $ (10,888 ) $ (15,492 ) $ (15,017 ) Foreign operations (168 ) 7,520 4,331 Net loss before income tax $ (11,056 ) $ (7,972 ) $ (10,686 ) The provision for income taxes consist of the following: SCHEDULE OF PROVISION FOR INCOME TAXES 2019 2020 2021 Year Ended December 31, 2019 2020 2021 Current: Federal $ - $ - $ - State 119 45 16 Foreign (44 ) 54 127 75 99 143 Deferred: Federal - - - State - - - Foreign - 939 2,464 - 939 2,464 Total (benefit) provision for income taxes $ 75 $ 1,038 $ 2,607 The difference between income taxes at the statutory federal income tax rate and income taxes reported in the Consolidated Statements of Operations is attributable to the following: SCHEDULE OF STATUTORY FEDERAL INCOME TAX RATE 2019 2020 2021 Year Ended December 31, 2019 2020 2021 Income tax benefit at the federal statutory rate $ (2,317 ) $ (1,674 ) $ (2,243 ) State and local income taxes, net of federal taxes (213 ) (421 ) 410 Increase (decrease) in valuation allowance 402 2,595 (203 ) Remeasurement of deferred tax adjustments 1,032 (48 ) 1,302 Permanent differences and other 1066 138 269 Foreign rate differential (38 ) (586 ) 1,681 GILTI inclusion - 1,008 1,312 Other (7 ) 26 79 Income tax benefit $ (75 ) $ 1,038 $ 2,607 The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2020 and 2021 are presented below: SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES 2020 2021 Year Ended December 31, 2020 2021 Deferred tax assets: Net operating loss carryforwards $ 32,843 $ 28,042 Capital loss carryforwards 11,025 11,398 Deferred revenue 1,775 2,097 Stock-based compensation 886 801 Federal research and development tax credits 1,058 1,058 Intangibles, amortization 1,718 - Inventories 65 344 Bad Debt Reserve 98 785 Deferred lease liability 626 714 Other deductible temporary differences 3,429 3,880 Total gross deferred tax assets 53,523 49,119 Less: valuation allowance (46,070 ) (44,228 ) Deferred tax assets, net of valuation allowance 7,453 4,891 Deferred tax liabilities: Intangible amortization (5,151 ) (5,192 ) ROU assets (599 ) (657 ) Fixed assets, depreciation (197 ) - Total deferred tax liabilities (5,947 ) (5,849 ) Net deferred tax (liabilities)/assets $ 1,506 $ (958 ) A reconciliation of the beginning and ending amount of unrecognized tax positions is as follows: SCHEDULE OF UNRECOGNIZED TAX POSITIONS 2020 2021 Year Ended December 31, 2020 2021 Balance at the beginning of the year $ 390 $ 423 Additions based on tax provisions taken related to current year 33 62 Balance at the end of year $ 423 $ 485 The unrecognized tax benefits, if recognized, would reduce the Company’s annual effective tax rate. The Company does not expect any significant changes to its unrecognized tax positions during the next twelve months. At December 31, 2021, the Company had an aggregate net operating loss carryforward of approximately $ 83,085 for U.S. federal income tax purposes. At December 31, 2021, the Company had an aggregate net operating loss carryforward of approximately $ 35,037 for state income tax purposes and a foreign net operating loss carryforward of approximately $ 35,902 . Substantially all of the net operating loss carryforwards expire from 2022 through 2037 for pre-2018 federal net operating loss carryforwards and from 2022 through 2041 for state purposes. The net operating loss carryforwards may be limited to use in any particular year based on Internal Revenue Code (“IRC”) Section 382 related to change of ownership restrictions. Section 382 of the IRC imposes an annual limitation on the utilization of NOL carryforwards based on long-term bond rates and the value of the corporation at the time of a change in ownership as defined by Section 382 of the IRC. In 2019, the Company incurred a change in ownership under Section 382 of the IRC and this change of ownership is not expected to materially impact the Company’s ability to utilize its net operating loss carryforward amounts in the future. In addition, future stock issuances may subject the Company to further limitations on the utilization of its net operating loss carryforwards under the same Internal Revenue Code provision. At December 31, 2021, the Company has New Jersey net operating loss carryforwards (“NJ NOLs”) included above in the approximate amount of $ 5,071 expiring through 2041, which are available to reduce future earnings which would otherwise be subject to state income tax. The Company is asserting permanent reinvestment of all accumulated undistributed earnings of its foreign subsidiaries as of December 31, 2021 in excess of annual debt service costs requirements. For the year ended December 31, 2021, the Company’s valuation allowance decreased to $ 44,228 compared to $ 46,070 as of December 31, 2020 primarily due to expiration of other net operating losses. The Company has provided a valuation allowance against the full amount of its domestic deferred tax assets and the majority of the foreign deferred tax assets. The valuation allowance was established because of the uncertainty of realization of the deferred tax assets due to lack of sufficient history of generating taxable income. Realization is dependent upon generating sufficient taxable income prior to the expiration of the net operating loss carryforwards in future periods. The valuation allowance increased in 2020 and decreased in 2021 by $ 3,953 , and $ 1,842 respectively. Audits for federal income tax returns are closed for the years through 2017. However, the Internal Revenue Service (“IRS”) can audit the NOL’s generated during those years in the years that the NOL’s are utilized. State income tax returns are generally subject to examination for a period of three to six years after the filing of the respective tax return. The state impact of any federal changes remains subject to examination by various states for a period of up to one year after formal notification to the states. Foreign income tax returns are generally subject to examination based on the tax laws of the respective jurisdictions. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 18 - COMMITMENTS AND CONTINGENCIES Except for normal operating leases, the Company is not currently subject to any material commitments. [A] Contingencies: Except for normal operating leases, the Company is not currently subject to any material commitments. From time to time, the Company is involved in various litigation matters involving claims incidental to its business and acquisitions, including employment matters, acquisition related claims, patent infringement and contractual matters, among other issues. While the outcome of any such litigation matters cannot be predicted with certainty, management currently believes that the outcome of these proceedings, including the matters described below, either individually or in the aggregate, will not have a material adverse effect on its business, results of operations or financial condition. The Company records reserves related to legal matters when losses related to such litigation or contingencies are both probable and reasonably estimable. In August 2014, Pointer do Brasil Comercial Ltda. (“Pointer Brazil”) received a notification of lack of payment of VAT tax (Brazilian ICMS tax) in the amount of $ 190 957 1,147 In July 2015, Pointer Brazil received a tax deficiency notice alleging that the services provided by Pointer Brazil should be classified as “telecommunication services” and therefore Pointer Brazil should be subject to the state value-added tax. The aggregate amount claimed to be owed under the notice was approximately $ 10,476 as of December 31, 2021. On August 14, 2018, the lower chamber of the State Tax Administrative Court in São Paulo rendered a decision that was favorable to Pointer Brazil in relation to the ICMS demands, but adverse in regards to the clerical obligation of keeping in good order a set of ICMS books and related tax receipts. The remaining claim after this administrative decision is $ 45 . The state has the opportunity to appeal to the higher chamber of the State Tax Administrative Court. The Company’s legal counsel is of the opinion that the chance of loss is not probable and that no material costs will arise in respect to these claims. For this reason, the Company has not made any provision. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 19 – SUBSEQUENT EVENTS Effective January 5, 2022, Steve Towe was appointed as the new Chief Executive Officer, succeeding Chris Wolfe. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Principles of consolidation | [A] Principles of consolidation The consolidated financial statements include the accounts of PowerFleet Inc. and its subsidiaries (which, as noted above, are collectively referred to herein as the “Company”). All material intercompany balances and transactions have been eliminated in consolidation. |
Use of estimates | [B] Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company continually evaluates estimates used in the preparation of the financial statements for reasonableness. The most significant estimates relate to realization of deferred tax assets, accounting for uncertain tax positions, the impairment of intangible assets, including goodwill, and stand-alone selling price related to multiple element revenue arrangements. Actual results could differ from those estimates. As of December 31, 2021, the impact of the COVID-19 pandemic continues to unfold. As a result, many of our estimates and assumptions required increased judgment and carry a higher degree of variability and volatility. As events continue to evolve and additional information becomes available, our estimates may change materially in future periods. |
Cash and cash equivalents | [C] Cash and cash equivalents The Company considers all highly liquid debt instruments with an original maturity of three months or less when purchased to be cash equivalents unless they are legally or contractually restricted. The Company’s cash and cash equivalent balances exceed Federal Deposit Insurance Corporation (“FDIC”) and other local jurisdictional limits. Restricted cash at December 31, 2020 and 2021 consists of cash held in escrow for purchases from a vendor |
Accounts receivable | [D] Accounts receivable Accounts receivable are recorded at the invoiced amount and do not bear interest. Amounts collected on trade accounts receivable are included in net cash provided by operating activities in the consolidated statements of cash flows. The Company maintains reserves against its accounts receivable for potential losses. Allowances for uncollectible accounts are estimated based on the Company’s periodic review of accounts receivable balances. In establishing the required allowance, management considers our customers’ financial condition, the amount of receivables in dispute, and the current receivables aging and current payment patterns. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. Accounts receivable are net of an allowance for doubtful accounts in the amount of $ 2,364 3,176 |
Revenue recognition | [E] Revenue recognition The Company and its subsidiaries generate revenue from sales of systems and products and from customer SaaS and hosting infrastructure fees. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods or providing services. Sales, value add, and other taxes the Company collects concurrently with revenue-producing activities are excluded from revenue. Incidental items that are immaterial in the context of the contract are recognized as expense. The expected costs associated with the Company’s base warranties continue to be recognized as expense when the products are sold (see Note 13). Revenue is recognized when performance obligations under the terms of a contract with our customer are satisfied. Product sales are recognized at a point in time when title transfers, when the products are shipped, or when control of the system is transferred to the customer, which usually is upon delivery of the system and when contractual performance obligations have been satisfied. For products which do not have stand-alone value to the customer separate from the SaaS services provided, the Company considers both hardware and SaaS services a bundled performance obligation. Under the applicable accounting guidance, all of the Company’s billings for equipment and the related cost for these systems are deferred, recorded, and classified as a current and long-term liability and a current and long-term asset, respectively. The deferred revenue and cost are recognized over the service contract life, ranging from one to five years, beginning at the time that a customer acknowledges acceptance of the equipment and service. The Company recognizes revenue for remotely hosted SaaS agreements and post-contract maintenance and support agreements beyond our standard warranties over the life of the contract. Revenue is recognized ratably over the service periods and the cost of providing these services is expensed as incurred. Amounts invoiced to customers which are not recognized as revenue are classified as deferred revenue and classified as short-term or long-term based upon the terms of future services to be delivered. Deferred revenue also includes prepayment of extended maintenance, hosting and support contracts. The Company earns other service revenues from installation services, training and technical support services which are short-term in nature and revenue for these services are recognized at the time of performance when the service is provided. The Company also derives revenue from leasing arrangements. Such arrangements provide for monthly payments covering product or system sale, maintenance, support and interest. These arrangements meet the criteria to be accounted for as sales-type leases. Accordingly, an asset is established for the “sales-type lease receivable” at the present value of the expected lease payments and revenue is deferred and recognized over the service contract, as described above. Maintenance revenues and interest income are recognized monthly over the lease term. The Company’s contracts with customers may include multiple performance obligations. For such arrangements, the Company allocates revenue to each performance obligation based on its relative standalone selling price. The Company generally determines standalone selling prices based on observable prices charged to customers or adjusted market assessment or using expected cost-plus margin when one is available. Adjusted market assessment price is determined based on overall pricing objectives taking into consideration market conditions and entity specific factors. The Company recognizes an asset for the incremental costs of obtaining the contract arising from the sales commissions to employees because the Company expects to recover those costs through future fees from the customers. The Company amortizes the asset over one to five years because the asset relates to the services transferred to the customer during the contract term of one to five years. The Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which the Company recognizes revenue at the amount to which the Company has the right to invoice for services performed. |
Deferred costs | [F] Deferred costs Deferred product costs consist of Powerfleet for Logistics equipment costs deferred in accordance with our revenue recognition policy. The Company evaluates the realizability of the carrying amount of the deferred contract costs. To the extent the carrying value of the deferred contract costs exceed the contract revenue, an impairment loss will be recognized. |
Inventory | [G] Inventory Inventories are stated at the lower of cost or net realizable value. Cost is determined using the “moving average” cost method or the first-in first-out (“FIFO”) method. Inventory consists of components, work in process and finished products Inventory valuation reserves are established in order to report inventories at the lower of cost or net realizable value in the consolidated balance sheet. The determination of inventory valuation reserves requires management to make estimates and judgments on the future salability of inventories. Valuation reserves for obsolete and slow-moving inventory are estimated based on assumptions of future sales forecasts, product life cycle expectations, the impact of new product introductions, production requirements, and specific identification of items, such as product discontinuance or engineering/material changes and by comparing the inventory levels to historical usage rates |
Fixed assets and depreciation | [H] Fixed assets and depreciation Fixed assets are recorded at cost, net of accumulated depreciation. Depreciation and amortization are recognized using the straight-line method over the estimated useful lives of the assets. The following table provides the range of estimated useful lives used for each asset type: SCHEDULE OF ESTIMATED USEFUL LIVES OF ASSET Useful Life (years) Computer software 3 5 Installed products 3 5 Computers and electronic equipment 3 10 Furniture and fixtures 5 7 Leasehold improvements Shorter of useful life or lease term |
Long-lived assets | [I] Long-lived assets Long-lived assets, which includes definite lived intangible assets and fixed assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is assessed by a comparison of the carrying amount of the assets to the future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets and would be charged to earnings. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. |
Goodwill and intangibles | [J] Goodwill and intangibles Goodwill represents costs in excess of fair values assigned to the underlying net assets of acquired businesses. Goodwill and intangible assets deemed to have indefinite lives are not amortized and are tested for impairment on an annual basis and between annual tests whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Intangible assets other than goodwill are amortized over their useful lives unless the lives are determined to be indefinite. Intangible assets are carried at cost, less accumulated amortization. Intangible assets consist of trademarks and trade name, patents, customer relationships and other intangible assets. Goodwill is tested at the reporting unit level, which is defined as an operating segment or one level below the operating segment. The Company operates in one operating segment which is its only reporting unit. The Company tests its goodwill for impairment annually which is the first day of the Company’s fourth quarter or when an indicator of impairment exists, by comparing the fair value of the reporting unit to its carrying value In the evaluation of goodwill for impairment, the Company has the option to perform a qualitative assessment to determine whether further impairment testing is necessary or to perform a quantitative assessment by comparing the fair value of a reporting unit to its carrying amount, including goodwill. Under the qualitative assessment, an entity is not required to calculate the fair value of a reporting unit unless the entity determines that it is more likely than not that its fair value is less than its carrying amount. By eliminating “Step 2” from the goodwill impairment test, the quantitative analysis of goodwill will result in an impairment loss for the amount that the carrying value of the reporting unit exceeds its fair value which is limited to the total amount of goodwill allocated to the reporting unit. The Company performed a market-based quantitative assessment utilizing the guideline public company and guideline transaction approaches by comparing revenue and adjusted EBITDA multiples of similar sized companies and similar sized transactions. For the years ended December 31, 2019, 2020, and 2021, the Company did not incur an impairment charge. |
Product warranties | [K] Product warranties The Company typically provides a 1 – 3-year warranty on its products |
Research and development | [L] Research and development Research and development costs are charged to expense as incurred and consists primarily of salaries and related expenses, supplies and contractor costs. Research and development costs were $ 8,540 10,597 11,058 |
Patent costs | [ M] Patent costs Cost incurred in connection with acquiring patent rights are charged to expense as incurred. |
Concentrations of credit risk | [N] Concentrations of credit risk Financial instruments that potentially subject the Company and its subsidiaries to concentrations of credit risk consist principally of cash and cash equivalents, trade receivables and trade payables The Company’s cash and cash equivalents are invested primarily in deposits with major banks worldwide. Generally, these deposits may be redeemed upon demand and, therefore, bear low risk. Management believes that the financial institutions that hold the Company’s investments have a high credit rating. For the year ended December 31, 2021, there were no customers who generated revenues greater than 10% of the Company’s consolidated total revenues or generated greater than 10 For the year ended December 31, 2020, there were no customers who generated revenues greater than 10% of the Company’s consolidated total revenues or generated greater than 10 For the year ended December 31, 2019, one customer accounted for 20 |
Benefit plan | [O] Benefit plan The Company maintains a retirement plan under Section 401(k) of the Internal Revenue Code, which covers all eligible employees. All employees with U.S. source income are eligible to participate in the plan immediately upon employment. The Company did not make any contributions to the plan during the years ended December 31, 2019, 2020 and 2021. |
Severance pay | [P] Severance pay The liability of the Company’s subsidiaries in Israel for severance pay is calculated pursuant to Israel’s Severance Pay Law 5273-1963 (the “Severance Law”) based on the most recent salary of the employees multiplied by the number of years of employment as of balance sheet date and are presented on an undiscounted basis (the “Shut Down Method”). Employees are entitled to one month’s salary for each year of employment, or a portion thereof. The liability for the Company and its subsidiaries in Israel is fully provided by monthly deposits with insurance policies and by accrual. The value of these policies is recorded as an asset in the Company’s balance sheet. The deposited funds may be withdrawn only upon the fulfillment of the obligation pursuant to the Severance Law or labor agreements. The value of the deposited funds is based on the cash surrendered value of these policies, and includes profits or losses accumulated to balance sheet date. Some of the Company’s employees are subject to Section 14 of the Severance Law and the General Approval of the Labor Minister dated June 30, 1998, issued in accordance to the said Section 14, mandating that upon termination of such employees’ employment, all the amounts accrued in their insurance policies shall be released to them. The severance pay liabilities and deposits covered by these plans are not reflected in the balance sheet as the severance pay risks have been irrevocably transferred to the severance funds. |
Stock-based compensation | [Q] Stock-based compensation The Company accounts for stock-based employee compensation for all share-based payments, including grants of stock options and restricted stock, as an operating expense based on their fair values on grant date. The Company recorded stock-based compensation expense of $ 3,794 4,142 4,416 The Company estimates the fair value of share-based option awards on the grant date using an option pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service period in the Company’s consolidated statement of operations. The Company estimates forfeitures at the time of grant in order to estimate the amount of share-based awards that will ultimately vest. The estimate is based on the Company’s historical rates of forfeitures. Estimated forfeitures are revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. |
Income taxes | [R] Income taxes The Company uses the asset and liability method of accounting for deferred income taxes. Deferred income taxes are measured by applying enacted statutory rates to net operating loss carryforwards and to the differences between the financial reporting and tax bases of assets and liabilities. Deferred tax assets are reduced, if necessary, by a valuation allowance if it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company recognizes uncertainty in income taxes in the financial statements using a recognition threshold and measurement attribute of a tax position taken or expected to be taken in a tax return. The Company applies the “more-likely-than-not” recognition threshold to all tax positions, commencing at the adoption date of the applicable accounting guidance, which resulted in no unrecognized tax benefits as of such date. Additionally, there have been no unrecognized tax benefits subsequent to adoption. The Company has opted to classify interest and penalties that would accrue according to the provisions of relevant tax law as selling, general, and administrative expenses and incomes taxes, respectively, in the consolidated statement of operations. For the years ended December 31, 2019, 2020 and 2021, interest and penalties were immaterial. |
Fair value of financial instruments | [S] Fair value of financial instruments The Company utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those levels ● Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities ● Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. ● Level 3: Unobservable inputs that reflect the reporting entity’s estimates of market participant assumptions The Company’s cash and cash equivalents and investments in securities are carried at fair value. The carrying value of financing receivables approximates fair value due to the interest rate implicit in the instruments approximating current market rates. The carrying value of accounts receivables, accounts payable and accrued liabilities and short term bank debt approximates their fair values due to the short period to maturity of these instruments. The fair value of the Company’s long term debt is based on observable relevant market information and future cash flows discounted at current rates, which are Level 2 measurements. SCHEDULE OF FAIR VALUE OF FINANCIAL INSTRUMENTS December 31, 2021 Carrying Amount Fair Value Long term debt $ 24,224 $ 24,224 |
Advertising and marketing expense | [T] Advertising and marketing expense Advertising and marketing costs are expensed as incurred. Advertising and marketing expense for the years ended December 31, 2019, 2020 and 2021 amounted to $ 1,228 1,022 1,185 |
Foreign currency translation | [U] Foreign currency translation The Company’s reporting currency is the U.S dollar (“USD”). For businesses where the majority of the revenues are generated in USD or linked to the USD and a substantial portion of the costs are incurred in USD, the Company’s management believes that the USD is the primary currency of the economic environment and thus their functional currency. Due to the fact that Argentina has been determined to be highly inflationary, the financial statements of our subsidiary in Argentina have been remeasured as if its functional currency was the USD. The Company also has foreign operations where the functional currency is the local currency. For these operations, assets and liabilities are translated using the end-of-period exchange rates and revenues, expenses and cash flows are translated using average rates of exchange for the period. Equity is translated at the rate of exchange at the date of the equity transaction. Translation adjustments are recognized in stockholders’ equity as a component of accumulated other comprehensive income (loss). Net translation gains (losses) from the translation of foreign currency are $ 653 , $ 134 and $ (8) at December 31, 2019, 2020 and 2021, respectively, which are included in comprehensive loss in the Consolidated Statement of Changes in Stockholders’ Equity. Foreign currency translation gains and losses related to operational expenses denominated in a currency other than the functional currency are included in determining net income or loss. Foreign currency translation gains (losses) for the years ended December 31, 2019, 2020 and 2021 of $ (42) 148 (128) (425) (2,137) 810 |
Commitments and contingencies | [ V] Commitments and contingencies From time to time, the Company is involved in various litigation matters involving claims incidental to its business and acquisitions, including employment matters, acquisition related claims, patent infringement and contractual matters, among other issues. While the outcome of any such litigation matters cannot be predicted with certainty, management currently believes that the outcome of these proceedings, including the matters described below, either individually or in the aggregate, will not have a material adverse effect on its business, results of operations or financial condition. The Company records reserves related to legal matters when losses related to such litigation or contingencies are both probable and reasonably estimable. |
Recently issued accounting pronouncements | [W] Recently issued accounting pronouncements In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2019-12, Simplifying the Accounting for Income Taxes which removes certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, the recognition of deferred tax liabilities for outside basis differences and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. The guidance is generally effective as of January 1, 2021, with early adoption permitted. The adoption of the standard did not have an impact on the Company’s consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments,” which amends the guidance on measuring credit losses on financial assets held at amortized cost. The amendment is intended to address the issue that the previous “incurred loss” methodology was restrictive for an entity’s ability to record credit losses based on not yet meeting the “probable” threshold. The new language will require these assets to be valued at amortized cost presented at the net amount expected to be collected with a valuation provision. This updated standard is effective for fiscal years beginning after December 15, 2021. The Company is currently evaluating the impact of this ASU on the consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment,” which simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. Under the amendments in ASU 2017-04, an entity should recognize an impairment charge for the amount by which the carrying amount of a reporting unit exceeds its fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The updated guidance requires a prospective adoption. The adoption of this standard did not have an impact on the Company’s consolidated financial statements. |
Reclassifications | [Y] Reclassifications Certain prior amounts have been reclassified to conform with the current year presentation for comparative purposes. These reclassifications had no effect on the previously reported results of operations. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
SCHEDULE OF ESTIMATED USEFUL LIVES OF ASSET | SCHEDULE OF ESTIMATED USEFUL LIVES OF ASSET Useful Life (years) Computer software 3 5 Installed products 3 5 Computers and electronic equipment 3 10 Furniture and fixtures 5 7 Leasehold improvements Shorter of useful life or lease term |
SCHEDULE OF FAIR VALUE OF FINANCIAL INSTRUMENTS | SCHEDULE OF FAIR VALUE OF FINANCIAL INSTRUMENTS December 31, 2021 Carrying Amount Fair Value Long term debt $ 24,224 $ 24,224 |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Pointer Transactions [Member] | |
Business Acquisition [Line Items] | |
SCHEDULE OF PURCHASE PRICE ALLOCATION ON NET ASSETS ACQUIRED | The following table summarizes the final purchase price allocation based on estimated fair values of the net assets acquired at the acquisition date: SCHEDULE OF PURCHASE PRICE ALLOCATION ON NET ASSETS ACQUIRED Accounts receivable $ 19,701 Inventory 8,666 Other assets 32,073 Customer relationships 15,610 Trademark and tradename 6,096 Technology 10,911 Patents Goodwill (a) 72,918 Less: Current liabilities assumed (21,055 ) Less: Non current liabilities assumed (14,504 ) Net assets acquired $ 130,416 (a) The goodwill is not deductible for tax purposes. |
SCHEDULE OF PRO FORMA REVENUE AND EARNINGS | SCHEDULE OF PRO FORMA REVENUE AND EARNINGS Revenues $ 18,594 Operating loss $ (1,665 ) |
Carrier web acquisition [Member] | |
Business Acquisition [Line Items] | |
SCHEDULE OF PURCHASE PRICE ALLOCATION ON NET ASSETS ACQUIRED | The following table summarizes the final purchase price allocation of the CarrierWeb Acquisitions based on the fair values of the net assets acquired at the acquisition date: SCHEDULE OF PURCHASE PRICE ALLOCATION ON NET ASSETS ACQUIRED Accounts receivable $ 192 Inventory 200 Other assets 26 Customer relationships 531 Trademark and tradename 90 Patents 628 Goodwill (a) 3,108 Net assets acquired $ 4,775 (a) The goodwill is fully deductible for tax purposes. |
SCHEDULE OF PRO FORMA REVENUE AND EARNINGS | The following table represents the combined pro forma revenue and earnings for the year ended December 31, 2019: SCHEDULE OF PRO FORMA REVENUE AND EARNINGS Year Ended December 31, 2019 (b) Historical Pro Forma Combined (Unaudited) Revenues $ 81,915 $ 135,126 Operating loss (10,183) (10,833 ) Net loss per share - basic and diluted $ (0.59 ) $ (0.66 ) (b) Includes pro forma results for the Transactions. Pro forma results for the CarrierWeb Acquisitions are impracticable to provide as the acquisition was a carve-out from a bankruptcy transaction. |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
SCHEDULE OF REVENUE DISAGGREGATED BY REVENUE SOURCE | The following table presents the Company’s revenues disaggregated by revenue source for the years ended December 31, 2019, 2020 and 2021. SCHEDULE OF REVENUE DISAGGREGATED BY REVENUE SOURCE Year Ended December 31, 2019 2020 2021 Products $ 45,416 $ 45,651 $ 52,981 Services 36,499 67,942 73,227 $ 81,915 $ 113,593 $ 126,208 |
SCHEDULE OF DEFERRED REVENUE | The balances of contract assets and contract liabilities from contracts with customers are as follows as of December 31, 2020 and 2021 are as follows: SCHEDULE OF DEFERRED REVENUE Year Ended December 31, 2020 2021 Assets: Deferred contract costs $ 2,157 $ 3,045 Deferred costs $ 5,361 $ 2,011 Liabilities: Deferred revenue- services (1) $ 6,578 $ 8,401 Deferred revenue - products (1) 6,767 2,546 13,345 10,947 Less: Deferred revenue current portion (7,339 ) (6,519 ) Deferred revenue long term $ 6,006 $ 4,428 (1) The Company record deferred revenues when cash payments are received or due in advance of the Company’s performance. For the years ended December 31, 2020 and 2021, the Company recognized revenue of $ 10,242 10,249 |
PREPAID EXPENSES AND OTHER AS_2
PREPAID EXPENSES AND OTHER ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
SCHEDULE OF PREPAID EXPENSES AND OTHER CURRENT ASSETS | Prepaid expenses and other current assets consist of the following: SCHEDULE OF PREPAID EXPENSES AND OTHER CURRENT ASSETS 2020 2021 Year Ended December 31, 2020 2021 Finance receivables, current $ 692 $ 786 Prepaid expenses 2,979 4,580 Contract assets 767 1,124 Other current assets 1,746 2,561 Prepaid expenses and other current assets $ 6,184 $ 9,051 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
SCHEDULE OF INVENTORIES | Inventories consist of the following: SCHEDULE OF INVENTORIES 2020 2021 Year Ended December 31, 2020 2021 Components $ 7,697 $ 11,137 Work in process 237 699 Finished goods, net 4,939 6,407 Inventory, Net $ 12,873 $ 18,243 |
FIXED ASSETS (Tables)
FIXED ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
SCHEDULE OF FIXED ASSETS | Fixed assets are stated at cost, less accumulated depreciation and amortization, and are summarized as follows: SCHEDULE OF FIXED ASSETS Year Ended December 31, 2020 2021 Installed products $ 4,174 $ 6,190 Computer software 5,882 6,732 Computer and electronic equipment 5,273 5,688 Furniture and fixtures 1,828 2,246 Leasehold improvements 1,353 1,445 18,510 22,301 Accumulated depreciation and amortization (9,706 ) (13,313 ) $ 8,804 $ 8,988 |
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
SCHEDULE OF INTANGIBLE ASSETS | The following table summarizes identifiable intangible assets of the Company as of December 31, 2021 and 2020: SCHEDULE OF INTANGIBLE ASSETS December 31, 2021 Useful Lives (In Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortized: Customer relationships 9 12 $ 19,264 $ (4,356 ) $ 14,908 Trademark and tradename 3 15 7,553 (2,096 ) 5,457 Patents 7 11 628 (262 ) 366 Technology 7 10,911 (5,709 ) 5,202 Favorable contract interest 4 388 (388 ) - Covenant not to compete 5 208 (184 ) 24 38,952 (12,995 ) 25,957 Unamortized: Customer List 104 - 104 Trademark and tradename 61 - 61 165 - 165 Total $ 39,117 $ (12,995 ) $ 26,122 December 31, 2020 Useful Lives (In Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortized: Customer relationships 9 12 $ 19,264 $ (2,732 ) $ 16,532 Trademark and tradename 3 15 7,553 (1,292 ) 6,261 Patents 7 11 2,117 (1,661 ) 456 Technology 7 10,911 (3,172 ) 7,739 Favorable contract interest 4 388 (331 ) 57 Covenant not to compete 5 208 (142 ) 66 40,441 (9,330 ) 31,111 Unamortized: Customer List 104 - 104 Trademark and tradename 61 - 61 165 - 165 Total $ 40,606 $ (9,330 ) $ 31,276 |
SCHEDULE OF FINITE-LIVED INTANGIBLE ASSETS, FUTURE AMORTIZATION EXPENSE | SCHEDULE OF FINITE-LIVED INTANGIBLE ASSETS, FUTURE AMORTIZATION EXPENSE Year ending December 31: 2022 $ 5,080 2023 5,035 2024 2,622 2025 2,495 2026 2,413 Thereafter 8,312 Finite-Lived Intangible Assets, Net, Total $ 25,957 |
SCHEDULE OF CHANGES IN GOODWILL | The change in goodwill from January 1, 2020 to December 31, 2021 is as follows: SCHEDULE OF CHANGES IN GOODWILL Balance as of January 1, 2020 $ 89,068 PPA measurement period adjustment (a) (5,724 ) Balance as of December 31, 2020 83,344 Other 143 Balance as of December 31, 2021 $ 83,487 a) After considering all information related to the finalization of income taxes the Company reduced certain provisionally recorded deferred tax liabilities due to the new information with a corresponding decrease in the Pointer acquisition goodwill b) |
NET LOSS PER SHARE (Tables)
NET LOSS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
SCHEDULE OF NET LOSS PER SHARE BASIC AND DILUTED | SCHEDULE OF NET LOSS PER SHARE BASIC AND DILUTED December 31, Basic and diluted loss per share 2019 2020 2021 Net loss attributable to common stockholders $ (12,047 ) $ (13,606 ) $ (18,072 ) Weighted-average common share outstanding - basic and diluted 20,476 29,703 34,571 Net loss attributable to common stockholders - basic and diluted $ (0.59 ) $ (0.46 ) $ (0.52 ) |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
SCHEDULE OF STOCK OPTIONS ACTIVITY | A summary of the status of the Company’s stock options as of December 31, 2019, 2020 and 2021 and changes during the years then ended, is presented below: SCHEDULE OF STOCK OPTIONS ACTIVITY 2019 2020 2021 Number of Shares Weighted- Average Exercise Price Number of Shares Weighted- Average Exercise Price Number of Shares Weighted- Average Exercise Price Outstanding at beginning of year 1,220 $ 5.37 4,078 $ 5.79 3,624 $ 5.85 Share-based payments assumed 127 4.35 - 0.00 - - Granted 2,829 5.99 1,230 6.08 120 7.77 Exercised (59 ) 3.79 (199 ) 4.72 (156 ) 5.60 Forfeited or expired (39 ) 6.22 (1,485 ) 6.02 (118 ) 6.34 Outstanding at end of year 4,078 $ 5.79 3,624 $ 5.85 3,470 $ 5.91 Exercisable at end of year 847 $ 5.71 1,247 $ 5.60 1,546 $ 5.67 |
SUMMARY OF STOCK OPTION INFORMATION BY EXERCISE PRICE RANGE | The following table summarizes information about stock options at December 31, 2021. SUMMARY OF STOCK OPTION INFORMATION BY EXERCISE PRICE RANGE Options Outstanding Options Exercisable Exercise Prices ($) Number Outstanding Weighted - Average Remaining Contractual Life in Years Weighted- Average Exercise Price Number Outstanding Weighted - Average Exercise Price 2.33 3.74 16 2 $ 2 16 $ 2 3.75 5.15 290 5 5 222 5 5.16 6.56 3,054 7 6 1,308 6 6.57 7.96 110 9 8 - - 3,470 7 $ 6 1,546 $ 6 |
SCHEDULE OF OPTIONS OUTSTANDING AND EXERCISABLE | SCHEDULE OF OPTIONS OUTSTANDING AND EXERCISABLE As of December 31, 2021 Aggregate Weighted - Options outstanding $ 92 7 Options exercisable $ 77 6 |
SCHEDULE OF FAIR VALUE STOCK OPTION ASSUMPTIONS | The fair value of each option grant on the date of grant is estimated using the Black-Scholes option-pricing model reflecting the following weighted-average assumptions: SCHEDULE OF FAIR VALUE STOCK OPTION ASSUMPTIONS Year Ended December 31, 2019 2020 2021 Expected volatility 42.1 % 47.1 % 50.2 % Expected life of options 6.7 6.3 6.5 Risk free interest rate 1.64 % 0.93 % 0.69 % Dividend yield 0 % 0 % 0 % Weighted-average fair value of options granted during year $ 2.20 $ 2.69 $ 3.81 |
Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
SCHEDULE OF NON-VESTED RESTRICTED STOCK ACTIVITY | SCHEDULE OF NON-VESTED RESTRICTED STOCK ACTIVITY Number of Non-Vested Shares Weighted - Average Grant Date Fair Value Non-vested, at January 1, 2019 568 6.65 Granted 625 5.82 Vested (276 ) 6.40 Forfeited or expired (40 ) 5.88 Non-vested, at December 31, 2019 877 6.17 Granted 463 4.88 Vested (389 ) 6.01 Forfeited or expired (145 ) 6.01 Non-vested, at December 31, 2020 806 5.54 Granted 450 7.63 Vested (537 ) 5.35 Forfeited or expired (90 ) 6.51 Non-vested, at December 31, 2021 629 7.06 |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
SCHEDULE OF NON-VESTED RESTRICTED STOCK ACTIVITY | SCHEDULE OF NON-VESTED RESTRICTED STOCK ACTIVITY Number of Restricted Stock Units Weighted - Average Grant Date Fair Value - - Pointer share-based payments assumed 260 $ 5.60 Vested (7 ) 5.60 Forfeited or expired - Restricted stock-units, non-vested December 31, 2019 253 $ 5.60 Vested (148 ) 5.60 Forfeited or expired (30 ) 5.60 Restricted stock-units, non-vested, December 31, 2020 75 $ 5.60 Vested (35 ) 5.60 Forfeited or expired (4 ) 5.60 Restricted stock-units, non-vested, December 31, 2021 36 $ 5.60 |
SHORT-TERM BANK DEBT AND LONG_2
SHORT-TERM BANK DEBT AND LONG-TERM DEBT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
SCHEDULE OF LONG TERM DEBT | SCHEDULE OF LONG TERM DEBT 2020 2021 Year Ended December 31, 2020 2021 Short-term bank debt $ 280 $ - Current maturities of long-term debt $ 5,299 $ 6,114 Long term debt - less current maturities $ 23,179 $ 18,110 |
SCHEDULE OF MATURITIES OF LONG TERM DEBT | Scheduled maturities of the long-term debt as of December 31, 2021, are as follows: SCHEDULE OF MATURITIES OF LONG TERM DEBT Year ending December 31: 2022 $ 6,114 2023 5,200 2024 12,910 Long term debt 24,224 Less: Current Portion 6,114 Total $ 18,110 |
ACCOUNTS PAYABLE AND ACCRUED _2
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
SCHEDULE OF ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | Accounts payable and accrued expenses consist of the following: SCHEDULE OF ACCOUNTS PAYABLE AND ACCRUED LIABILITIES 2020 2021 Year Ended December 31, 2020 2021 Accounts payable $ 9,877 $ 17,748 Accrued warranty 705 1,146 Accrued compensation 5,581 6,644 Government authorities 3,047 2,080 Other current liabilities 1,015 1,397 Accounts payable and accrued expenses $ 20,225 $ 29,015 |
SCHEDULE OF PRODUCT WARRANTY LIABILITY | The following table summarizes warranty activity during the years ended December 31, 2020 and 2021: SCHEDULE OF PRODUCT WARRANTY LIABILITY Year Ended December 31, 2020 2021 Accrued warranty reserve, beginning of year $ 742 $ 807 Accrual for product warranties issued 784 1,335 Product replacements and other warranty expenditures (667 ) (411 ) Expiration of warranties (52 ) (398 ) Accrued warranty reserve, end of period (a) $ 807 $ 1,333 (a) Includes accrued warranty included in other long-term liabilities at December 31, 2020 and 2021 of $ 102 187 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases | |
SCHEDULE OF COMPONENTS OF LEASE EXPENSE | Components of lease expense are as follows: SCHEDULE OF COMPONENTS OF LEASE EXPENSE Year Ended December 31, 2020 Year Ended December 31, 2021 Short term lease cost: $ 584 $ 563 |
SCHEDULE OF CASH FLOW INFORMATION AND NON-CASH ACTIVITY OF OPERATING LEASES | Supplemental cash flow information and non-cash activity related to the Company’s operating leases are as follows: SCHEDULE OF CASH FLOW INFORMATION AND NON-CASH ACTIVITY OF OPERATING LEASES Year Ended December 31, 2020 Year Ended December 31, 2021 Non-cash activity: Right-of-use assets obtained in exchange for lease obligations $ 4,822 $ 2,695 |
SCHEDULE OF WEIGHTED AVERAGE REMAINING LEASE TERM AND DISCOUNT RATE | Weighted-average remaining lease term and discount rate for the Company’s operating leases are as follows: SCHEDULE OF WEIGHTED AVERAGE REMAINING LEASE TERM AND DISCOUNT RATE December 31, 2021 Weighted-average remaining lease term (in years) 3.5 Weighted-average discount rate 4.5 % |
SCHEDULED MATURITIES OF OPERATING LEASE LIABILITIES | Scheduled maturities of operating lease liabilities outstanding as of December 31, 2021 are as follows: SCHEDULED MATURITIES OF OPERATING LEASE LIABILITIES Year ending December 31: 2022 $ 3,034 2023 2,620 2024 1,920 2025 1,780 2026 744 Thereafter 959 Total lease payments 11,057 Less: Imputed interest (1,050 ) Present value of lease liabilities $ 10,007 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
SCHEDULE OF ACCUMULATED OTHER COMPREHENSIVE LOSS | The accumulated balances for each classification of other comprehensive income (loss) are as follows: SCHEDULE OF ACCUMULATED OTHER COMPREHENSIVE LOSS Foreign currency translation adjustment Unrealized gain (losses) on investments Accumulated other comprehensive income Balance at January 1, 2019 $ (388 ) $ (47 ) $ (435 ) Net current period change 653 47 700 Balance at December 31, 2019 $ 265 $ - $ 265 Net current period change 134 - 134 Balance at December 31, 2020 399 - 399 Net current period change (8 ) - (8 ) Balance at December 31, 2021 $ 391 $ - $ 391 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
SCHEDULE OF REVENUES AND LONG LIVED ASSETS BY GEOGRAPHICAL REGION | The Company operates in one reportable segment, wireless IoT asset management. The following table summarizes revenues on a percentage basis by geographic region. SCHEDULE OF REVENUES AND LONG LIVED ASSETS BY GEOGRAPHICAL REGION Year Ended December 31, 2019 2020 2021 United States $ 60,544 $ 46,047 $ 50,844 Israel 9,650 38,719 44,849 Other 11,721 28,827 30,515 $ 81,915 $ 113,593 $ 126,208 Year Ended December 31, 2019 2020 2021 Long lived assets by geographic region: United States $ 1,931 $ 1,425 $ 1,123 Israel 2,285 3,282 3,675 Other 4,023 4,097 4,190 $ 8,240 $ 8,804 $ 8,988 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
SCHEDULE OF LOSS BEFORE INCOME TAXES | Loss before income taxes consists of the following: SCHEDULE OF LOSS BEFORE INCOME TAXES 2019 2020 2021 Year Ended December 31, 2019 2020 2021 U.S. operations $ (10,888 ) $ (15,492 ) $ (15,017 ) Foreign operations (168 ) 7,520 4,331 Net loss before income tax $ (11,056 ) $ (7,972 ) $ (10,686 ) |
SCHEDULE OF PROVISION FOR INCOME TAXES | The provision for income taxes consist of the following: SCHEDULE OF PROVISION FOR INCOME TAXES 2019 2020 2021 Year Ended December 31, 2019 2020 2021 Current: Federal $ - $ - $ - State 119 45 16 Foreign (44 ) 54 127 75 99 143 Deferred: Federal - - - State - - - Foreign - 939 2,464 - 939 2,464 Total (benefit) provision for income taxes $ 75 $ 1,038 $ 2,607 |
SCHEDULE OF STATUTORY FEDERAL INCOME TAX RATE | The difference between income taxes at the statutory federal income tax rate and income taxes reported in the Consolidated Statements of Operations is attributable to the following: SCHEDULE OF STATUTORY FEDERAL INCOME TAX RATE 2019 2020 2021 Year Ended December 31, 2019 2020 2021 Income tax benefit at the federal statutory rate $ (2,317 ) $ (1,674 ) $ (2,243 ) State and local income taxes, net of federal taxes (213 ) (421 ) 410 Increase (decrease) in valuation allowance 402 2,595 (203 ) Remeasurement of deferred tax adjustments 1,032 (48 ) 1,302 Permanent differences and other 1066 138 269 Foreign rate differential (38 ) (586 ) 1,681 GILTI inclusion - 1,008 1,312 Other (7 ) 26 79 Income tax benefit $ (75 ) $ 1,038 $ 2,607 |
SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2020 and 2021 are presented below: SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES 2020 2021 Year Ended December 31, 2020 2021 Deferred tax assets: Net operating loss carryforwards $ 32,843 $ 28,042 Capital loss carryforwards 11,025 11,398 Deferred revenue 1,775 2,097 Stock-based compensation 886 801 Federal research and development tax credits 1,058 1,058 Intangibles, amortization 1,718 - Inventories 65 344 Bad Debt Reserve 98 785 Deferred lease liability 626 714 Other deductible temporary differences 3,429 3,880 Total gross deferred tax assets 53,523 49,119 Less: valuation allowance (46,070 ) (44,228 ) Deferred tax assets, net of valuation allowance 7,453 4,891 Deferred tax liabilities: Intangible amortization (5,151 ) (5,192 ) ROU assets (599 ) (657 ) Fixed assets, depreciation (197 ) - Total deferred tax liabilities (5,947 ) (5,849 ) Net deferred tax (liabilities)/assets $ 1,506 $ (958 ) |
SCHEDULE OF UNRECOGNIZED TAX POSITIONS | A reconciliation of the beginning and ending amount of unrecognized tax positions is as follows: SCHEDULE OF UNRECOGNIZED TAX POSITIONS 2020 2021 Year Ended December 31, 2020 2021 Balance at the beginning of the year $ 390 $ 423 Additions based on tax provisions taken related to current year 33 62 Balance at the end of year $ 423 $ 485 |
DESCRIPTION OF BUSINESS AND L_2
DESCRIPTION OF BUSINESS AND LIQUIDITY (Details Narrative) - USD ($) | Feb. 01, 2021 | May 14, 2020 | Nov. 27, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 26,760,000 | |||||
[custom:WorkingCapital-0] | 43,622,000 | |||||
Proceeds from Issuance of Common Stock | $ 26,867,000 | $ 4,041,000 | $ 46,309,000 | |||
Stock Preferred Stock Warrants Debt Securities And Units Or Any Combination [Member] | ||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||
Sale of stock, description of transaction | The Company has on file a shelf registration statement on Form S-3 that was declared effective by the Securities and Exchange Commission (the “SEC”) on November 27, 2019. Pursuant to the shelf registration statement, the Company may offer to the public from time to time, in one or more offerings, up to $60,000 of its common stock, preferred stock, warrants, debt securities, and units, or any combination of the foregoing, at prices and on terms to be determined at the time of any such offering. The specific terms of any future offering will be determined at the time of the offering and described in a prospectus supplement that will be filed with the SEC in connection with such offering | |||||
Underwritten Public Offering [Member] | ||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||
Number of common stock issued | 4,428,000 | |||||
Proceeds from issuance of initial public offering | $ 28,800,000 | |||||
Credit Agreement [Member] | Revolving Credit Facility [Member] | ||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||
Line of Credit Facility, Description | five-year | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 10,000,000 | |||||
Credit Agreement [Member] | Two Senior Secured Term Loan [Member] | ||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||
Debt Instrument, Face Amount | 30,000,000 | |||||
Credit Agreement [Member] | TermA Facility [Member] | ||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||
Debt Instrument, Face Amount | 20,000,000 | |||||
Credit Agreement [Member] | TermB Facility [Member] | ||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||
Debt Instrument, Face Amount | $ 10,000,000 | |||||
Equity Distribution Agreement [Member] | Canaccord Genuity LLC [Member] | ||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||
Proceeds from issuance of initial public offering | $ 25,000,000 | |||||
Equity Distribution Agreement [Member] | IPO [Member] | Canaccord Genuity LLC [Member] | ||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||
Number of common stock issued | 810 | |||||
Proceeds from Issuance of Common Stock | $ 4,200 |
SCHEDULE OF ESTIMATED USEFUL LI
SCHEDULE OF ESTIMATED USEFUL LIVES OF ASSET (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Computer Software, Intangible Asset [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Computer Software, Intangible Asset [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 5 years |
Installed Products [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Installed Products [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 5 years |
Computers and Electronic Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Computers and Electronic Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 10 years |
Furniture and Fixtures [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 5 years |
Furniture and Fixtures [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 7 years |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful life fixed assets description | Shorter of useful life or lease term |
SCHEDULE OF FAIR VALUE OF FINAN
SCHEDULE OF FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - Fair Value, Inputs, Level 2 [Member] $ in Thousands | Dec. 31, 2021USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
Long term debt, carrying amount | $ 24,224 |
Long term debt, fair value | $ 24,224 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Product Information [Line Items] | |||
Accounts receivable | $ 3,176 | $ 2,364 | |
Products warranty description | The Company typically provides a 1 – 3-year warranty on its products | ||
Research and development costs | $ 11,058 | 10,597 | $ 8,540 |
Stock-based compensation expense | 4,416 | 4,142 | 3,794 |
Advertising and marketing expense | 1,185 | 1,022 | 1,228 |
Selling, General and Administrative Expenses [Member] | |||
Product Information [Line Items] | |||
Foreign currency translation gain (losses) | (128) | 148 | (42) |
Interest Expense [Member] | |||
Product Information [Line Items] | |||
Foreign currency translation gain (losses) | 810 | (2,137) | (425) |
Comprehensive Loss [Member] | |||
Product Information [Line Items] | |||
Foreign currency translation gain (losses) | $ (8) | $ 134 | $ 653 |
Customer Concentration Risk [Member] | Revenue from Contract with Customer Benchmark [Member] | No Customer [Member] | |||
Product Information [Line Items] | |||
Concentration risk, percentage | 10.00% | 10.00% | |
Customer Concentration Risk [Member] | Revenue from Contract with Customer Benchmark [Member] | One Customer [Member] | |||
Product Information [Line Items] | |||
Concentration risk, percentage | 20.00% |
SCHEDULE OF PURCHASE PRICE ALLO
SCHEDULE OF PURCHASE PRICE ALLOCATION ON NET ASSETS ACQUIRED (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Oct. 03, 2019 | Jan. 30, 2019 | |
Business Acquisition [Line Items] | ||||||
Goodwill (a) | $ 83,487 | $ 83,344 | $ 89,068 | |||
Pointer Telocation Ltd [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Accounts receivable | $ 19,701 | |||||
Inventory | 8,666 | |||||
Other assets | 32,073 | |||||
Customer relationships | 15,610 | |||||
Trademark and tradename | 6,096 | |||||
Technology | 10,911 | |||||
Goodwill (a) | [1] | 72,918 | ||||
Less: Current liabilities assumed | (21,055) | |||||
Less: Non current liabilities assumed | (14,504) | |||||
Net assets acquired | $ 130,416 | |||||
Carrier web acquisition [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Accounts receivable | $ 192 | |||||
Inventory | 200 | |||||
Other assets | 26 | |||||
Customer relationships | 531 | |||||
Trademark and tradename | 90 | |||||
Patents | 628 | |||||
Goodwill (a) | [2] | 3,108 | ||||
Net assets acquired | $ 4,775 | |||||
[1] | The goodwill is not deductible for tax purposes. | |||||
[2] | The goodwill is fully deductible for tax purposes. |
SCHEDULE OF PRO FORMA REVENUE A
SCHEDULE OF PRO FORMA REVENUE AND EARNINGS (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($)$ / shares | ||
Pointer Telocation Ltd [Member] | ||
Business Acquisition [Line Items] | ||
Revenues | $ 18,594 | |
Operating loss | (1,665) | |
Historical [Member] | ||
Business Acquisition [Line Items] | ||
Revenues | 81,915 | [1] |
Operating loss | $ (10,183) | [1] |
Net loss per share - basic and diluted | $ / shares | $ (0.59) | [1] |
Pro Forma Combined [Member] | ||
Business Acquisition [Line Items] | ||
Revenues | $ 135,126 | [1] |
Operating loss | $ (10,833) | [1] |
Net loss per share - basic and diluted | $ / shares | $ (0.66) | [1] |
[1] | Includes pro forma results for the Transactions. Pro forma results for the CarrierWeb Acquisitions are impracticable to provide as the acquisition was a carve-out from a bankruptcy transaction. |
ACQUISITIONS (Details Narrative
ACQUISITIONS (Details Narrative) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
CarrierWeb Acquisitions [Member] | |
Business Acquisition [Line Items] | |
Acquisition contributed to revenue | $ 3,809 |
SCHEDULE OF REVENUE DISAGGREGAT
SCHEDULE OF REVENUE DISAGGREGATED BY REVENUE SOURCE (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 126,208 | $ 113,593 | $ 81,915 |
Product [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 52,981 | 45,651 | 45,416 |
Service [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 73,227 | $ 67,942 | $ 36,499 |
SCHEDULE OF DEFERRED REVENUE (D
SCHEDULE OF DEFERRED REVENUE (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Deferred costs | $ 2,011 | $ 5,361 | |
Deferred revenue | 10,947 | 13,345 | |
Less: Deferred revenue and contract liabilities - current portion | (6,519) | (7,339) | |
Deferred revenue and contract liabilities - less current portion | 4,428 | 6,006 | |
Service [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Deferred revenue | [1] | 8,401 | 6,578 |
Product [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Deferred revenue | [1] | 2,546 | 6,767 |
Deferred Contract Costs [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Deferred costs | $ 3,045 | $ 2,157 | |
[1] | The Company record deferred revenues when cash payments are received or due in advance of the Company’s performance. For the years ended December 31, 2020 and 2021, the Company recognized revenue of $ 10,242 10,249 |
SCHEDULE OF DEFERRED REVENUE _2
SCHEDULE OF DEFERRED REVENUE (Details) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | ||
Revenue recognized | $ 10,249 | $ 10,242 |
SCHEDULE OF PREPAID EXPENSES AN
SCHEDULE OF PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Finance receivables, current | $ 786 | $ 692 |
Prepaid expenses | 4,580 | 2,979 |
Contract assets | 1,124 | 767 |
Other current assets | 2,561 | 1,746 |
Prepaid expenses and other current assets | $ 9,051 | $ 6,184 |
SCHEDULE OF INVENTORIES (Detail
SCHEDULE OF INVENTORIES (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Components | $ 11,137 | $ 7,697 |
Work in process | 699 | 237 |
Finished goods, net | 6,407 | 4,939 |
Inventory, Net | $ 18,243 | $ 12,873 |
INVENTORIES (Details Narrative)
INVENTORIES (Details Narrative) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Inventory valuation reserves | $ 260 | $ 515 |
SCHEDULE OF FIXED ASSETS (Detai
SCHEDULE OF FIXED ASSETS (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 22,301 | $ 18,510 |
Accumulated depreciation and amortization | (13,313) | (9,706) |
Property, plant and equipment, net | 8,988 | 8,804 |
Installed Products [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 6,190 | 4,174 |
Computer Software, Intangible Asset [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 6,732 | 5,882 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 5,688 | 5,273 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 2,246 | 1,828 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 1,445 | $ 1,353 |
FIXED ASSETS (Details Narrative
FIXED ASSETS (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation | $ 3,399 | $ 3,097 | $ 1,380 |
Computer Software, Intangible Asset [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Capitalized computer software, amortization | $ 426 | $ 515 | $ 528 |
SCHEDULE OF INTANGIBLE ASSETS (
SCHEDULE OF INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 38,952 | $ 40,441 |
Finite-Lived Intangible Assets, Accumulated Amortization | (12,995) | (9,330) |
Finite-Lived Intangible Assets, Net | 25,957 | 31,111 |
Indefinite-Lived Intangible Assets (Excluding Goodwill), Gross | 165 | 165 |
Indefinite-Lived Intangible Assets (Excluding Goodwill) | 165 | 165 |
Intangible Assets Gross | 39,117 | 40,606 |
Intangible Assets, Accumulated Amortization | (12,995) | (9,330) |
Intangible Assets, Net | 26,122 | 31,276 |
Trademarks and Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 7,553 | 7,553 |
Finite-Lived Intangible Assets, Accumulated Amortization | (2,096) | (1,292) |
Finite-Lived Intangible Assets, Net | 5,457 | 6,261 |
Indefinite-Lived Intangible Assets (Excluding Goodwill), Gross | 61 | 61 |
Indefinite-Lived Intangible Assets (Excluding Goodwill) | 61 | 61 |
Customer Lists [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-Lived Intangible Assets (Excluding Goodwill), Gross | 104 | 104 |
Indefinite-Lived Intangible Assets (Excluding Goodwill) | $ 104 | $ 104 |
Minimum [Member] | Trademarks and Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Lives (In Years) | 3 years | 3 years |
Maximum [Member] | Trademarks and Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Lives (In Years) | 15 years | 15 years |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 19,264 | $ 19,264 |
Finite-Lived Intangible Assets, Accumulated Amortization | (4,356) | (2,732) |
Finite-Lived Intangible Assets, Net | $ 14,908 | $ 16,532 |
Customer Relationships [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Lives (In Years) | 9 years | 9 years |
Customer Relationships [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Lives (In Years) | 12 years | 12 years |
Patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 628 | $ 2,117 |
Finite-Lived Intangible Assets, Accumulated Amortization | (262) | (1,661) |
Finite-Lived Intangible Assets, Net | $ 366 | $ 456 |
Patents [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Lives (In Years) | 7 years | 7 years |
Patents [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Lives (In Years) | 11 years | 11 years |
Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Lives (In Years) | 7 years | 7 years |
Finite-Lived Intangible Assets, Gross | $ 10,911 | $ 10,911 |
Finite-Lived Intangible Assets, Accumulated Amortization | (5,709) | (3,172) |
Finite-Lived Intangible Assets, Net | $ 5,202 | $ 7,739 |
Favorable Contract Interest [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Lives (In Years) | 4 years | 4 years |
Finite-Lived Intangible Assets, Gross | $ 388 | $ 388 |
Finite-Lived Intangible Assets, Accumulated Amortization | (388) | (331) |
Finite-Lived Intangible Assets, Net | $ 57 | |
Noncompete Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Lives (In Years) | 5 years | 5 years |
Finite-Lived Intangible Assets, Gross | $ 208 | $ 208 |
Finite-Lived Intangible Assets, Accumulated Amortization | (184) | (142) |
Finite-Lived Intangible Assets, Net | $ 24 | $ 66 |
SCHEDULE OF FINITE-LIVED INTANG
SCHEDULE OF FINITE-LIVED INTANGIBLE ASSETS, FUTURE AMORTIZATION EXPENSE (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2022 | $ 5,080 | |
2023 | 5,035 | |
2024 | 2,622 | |
2025 | 2,495 | |
2026 | 2,413 | |
Thereafter | 8,312 | |
Finite-Lived Intangible Assets, Net, Total | $ 25,957 | $ 31,111 |
SCHEDULE OF CHANGES IN GOODWILL
SCHEDULE OF CHANGES IN GOODWILL (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | ||
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill beginning balance | $ 83,344 | $ 89,068 | |
PPA measurement period adjustment | 143 | (5,724) | [1] |
Goodwill ending balance | $ 83,487 | $ 83,344 | |
[1] | After considering all information related to the finalization of income taxes the Company reduced certain provisionally recorded deferred tax liabilities due to the new information with a corresponding decrease in the Pointer acquisition goodwill |
INTANGIBLE ASSETS AND GOODWIL_2
INTANGIBLE ASSETS AND GOODWILL (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Remaining Amortization Period | 9 years 1 month 6 days | ||
Amortization of intangible assets | $ 5,154 | $ 5,328 | $ 1,967 |
Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Remaining Amortization Period | 11 years 10 months 24 days | ||
Trademarks and Trade Names [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Remaining Amortization Period | 9 years 7 months 6 days | ||
Patents [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Remaining Amortization Period | 7 years | ||
Technology [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Remaining Amortization Period | 4 years 3 months 18 days | ||
Favorable Contract Interest [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Remaining Amortization Period | 4 years | ||
Covenant Not To Compete [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Remaining Amortization Period | 5 years |
SCHEDULE OF NET LOSS PER SHARE
SCHEDULE OF NET LOSS PER SHARE BASIC AND DILUTED (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |||
Net loss attributable to common stockholders | $ (18,072) | $ (13,606) | $ (12,047) |
Weighted-average common share outstanding - basic and diluted | 34,571 | 29,703 | 20,476 |
Net loss attributable to common stockholders - basic and diluted | $ (0.52) | $ (0.46) | $ (0.59) |
NET LOSS PER SHARE (Details Nar
NET LOSS PER SHARE (Details Narrative) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |||
Antidilutive securities | 11,628 | 11,998 | 12,865 |
SCHEDULE OF STOCK OPTIONS ACTIV
SCHEDULE OF STOCK OPTIONS ACTIVITY (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options, Outstanding at end of year | 3,470 | ||
Weighted-average Exercise Price, Outstanding at end of year | $ 6 | ||
Options, Exercisable at end of year | 1,546 | ||
Weighted-average Exercise Price, Exercisable at end of year | $ 6 | ||
Share-based Payment Arrangement, Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options, Outstanding at beginning of year | 3,624 | 4,078 | 1,220 |
Weighted-average Exercise Price, Outstanding at beginning of year | $ 5.85 | $ 5.79 | $ 5.37 |
Options, Share-based payments assumed | 127 | ||
Weighted-average Exercise Price, Share-based payments assumed | $ 0 | $ 4.35 | |
Options, Granted | 120 | 1,230 | 2,829 |
Weighted-average Exercise Price, Granted | $ 7.77 | $ 6.08 | $ 5.99 |
Options, Exercised | (156) | (199) | (59) |
Weighted-average Exercise Price, Exercised | $ 5.60 | $ 4.72 | $ 3.79 |
Options, Forfeited or expired | (118) | (1,485) | (39) |
Weighted-average Exercise Price, Forfeited or expired | $ 6.34 | $ 6.02 | $ 6.22 |
Options, Outstanding at end of year | 3,470 | 3,624 | 4,078 |
Weighted-average Exercise Price, Outstanding at end of year | $ 5.91 | $ 5.85 | $ 5.79 |
Options, Exercisable at end of year | 1,546 | 1,247 | 847 |
Weighted-average Exercise Price, Exercisable at end of year | $ 5.67 | $ 5.60 | $ 5.71 |
SUMMARY OF STOCK OPTION INFORMA
SUMMARY OF STOCK OPTION INFORMATION BY EXERCISE PRICE RANGE (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of options outstanding | shares | 3,470 |
Options outstanding, weighted - average remaining contractual life in years | 7 years |
Options outstanding, weighted - average exercise price | $ 6 |
Number of options exercisable | shares | 1,546 |
Options exercisable, weighted - average exercise price | $ 6 |
Exercise Price Range One [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price, lower limit | 2.33 |
Exercise price, upper limit | $ 3.74 |
Number of options outstanding | shares | 16 |
Options outstanding, weighted - average remaining contractual life in years | 2 years |
Options outstanding, weighted - average exercise price | $ 2 |
Number of options exercisable | shares | 16 |
Options exercisable, weighted - average exercise price | $ 2 |
Exercise Price Range Two [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price, lower limit | 3.75 |
Exercise price, upper limit | $ 5.15 |
Number of options outstanding | shares | 290 |
Options outstanding, weighted - average remaining contractual life in years | 5 years |
Options outstanding, weighted - average exercise price | $ 5 |
Number of options exercisable | shares | 222 |
Options exercisable, weighted - average exercise price | $ 5 |
Exercise Price Range Three [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price, lower limit | 5.16 |
Exercise price, upper limit | $ 6.56 |
Number of options outstanding | shares | 3,054 |
Options outstanding, weighted - average remaining contractual life in years | 7 years |
Options outstanding, weighted - average exercise price | $ 6 |
Number of options exercisable | shares | 1,308 |
Options exercisable, weighted - average exercise price | $ 6 |
Exercise Price Range Four [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price, lower limit | 6.57 |
Exercise price, upper limit | $ 7.96 |
Number of options outstanding | shares | 110 |
Options outstanding, weighted - average remaining contractual life in years | 9 years |
Options outstanding, weighted - average exercise price | $ 8 |
Number of options exercisable | shares | |
Options exercisable, weighted - average exercise price |
SCHEDULE OF OPTIONS OUTSTANDING
SCHEDULE OF OPTIONS OUTSTANDING AND EXERCISABLE (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Share-based Payment Arrangement [Abstract] | |
Aggregate Intrinsic Value, Options outstanding | $ 92 |
Weighted-Average Remaining Contractual Life in Years, Options outstanding | 7 years |
Aggregate Intrinsic Value, Options exercisable | $ 77 |
Weighted-Average Remaining Contractual Life in Years, Options exercisable | 6 years |
SCHEDULE OF FAIR VALUE STOCK OP
SCHEDULE OF FAIR VALUE STOCK OPTION ASSUMPTIONS (Details) - $ / shares | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 09, 2021 | |
Share-based Payment Arrangement [Abstract] | ||||
Expected volatility | 50.20% | 47.10% | 42.10% | |
Expected life of options (in years) | 6 years 6 months | 6 years 3 months 18 days | 6 years 8 months 12 days | |
Risk free interest rate | 0.69% | 0.93% | 1.64% | |
Dividend yield | 0.00% | 0.00% | 0.00% | |
Weighted average fair value of options granted during the period | $ 3.81 | $ 2.69 | $ 2.20 | $ 1,450 |
SCHEDULE OF NON-VESTED RESTRICT
SCHEDULE OF NON-VESTED RESTRICTED STOCK ACTIVITY (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Non-vested Shares, Beginning of Year | 806 | 877 | 568 |
Weighted- Average Grant Date Fair Value, Non-vested, Beginning of Year | $ 5.54 | $ 6.17 | $ 6.65 |
Number of Non-vested Shares, Granted | 450 | 463 | 625 |
Weighted- Average Grant Date Fair Value, Granted | $ 7.63 | $ 4.88 | $ 5.82 |
Number of Non-vested Shares, Vested | (537) | (389) | (276) |
Weighted- Average Grant Date Fair Value, Vested | $ 5.35 | $ 6.01 | $ 6.40 |
Number of Non-vested Shares, Forfeited or expired | (90) | (145) | (40) |
Weighted- Average Grant Date Fair Value, Forfeited or expired | $ 6.51 | $ 6.01 | $ 5.88 |
Number of Non-vested Shares, End of Period | 629 | 806 | 877 |
Weighted- Average Grant Date Fair Value, Non-vested, End of Period | $ 7.06 | $ 5.54 | $ 6.17 |
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Non-vested Shares, Beginning of Year | 75 | 253 | |
Weighted- Average Grant Date Fair Value, Non-vested, Beginning of Year | $ 5.60 | $ 5.60 | |
Number of Non-vested Shares, Vested | (35) | (148) | (7) |
Weighted- Average Grant Date Fair Value, Vested | $ 5.60 | $ 5.60 | $ 5.60 |
Number of Non-vested Shares, Forfeited or expired | (4) | (30) | |
Weighted- Average Grant Date Fair Value, Forfeited or expired | $ 5.60 | $ 5.60 | |
Number of Non-vested Shares, End of Period | 36 | 75 | 253 |
Weighted- Average Grant Date Fair Value, Non-vested, End of Period | $ 5.60 | $ 5.60 | $ 5.60 |
Number of Non-vested Shares, Pointer shares- based payments assumed | 260 | ||
Weighted- Average Grant Date Fair Value, Pointer shares- based payments assumed | $ 5.60 |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | Oct. 03, 2019 | Mar. 13, 2019 | Jun. 30, 2018 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 09, 2021 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Allocated share-based compensation expense | $ 4,416 | $ 4,142 | $ 3,794 | ||||
Risk free interest rate | 0.69% | 0.93% | 1.64% | ||||
Expected volatility | 50.20% | 47.10% | 42.10% | ||||
Expected life of awards | 6 years 6 months | 6 years 3 months 18 days | 6 years 8 months 12 days | ||||
Weighted average fair value of options granted during the period | $ 3.81 | $ 2.69 | $ 2.20 | $ 1,450 | |||
Share-based Payment Arrangement, Option [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of options granted to purchase shares of common stock | 120,000 | 1,230,000 | 2,829,000 | ||||
Options exercise price per share | $ 7.77 | $ 6.08 | $ 5.99 | ||||
Allocated share-based compensation expense | $ 1,684 | $ 1,587 | $ 1,516 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | 1,201 | 1,974 | 476 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | 483 | 313 | 119 | ||||
Share-based compensation, nonvested awards, not yet recognized | $ 2,741 | ||||||
Share-based compensation, nonvested awards, not yet recognized, period for recognition | 3 years 8 months 8 days | ||||||
Restricted Stock [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Allocated share-based compensation expense | $ 2,529 | 2,272 | 2,061 | ||||
Share-based compensation, nonvested awards, not yet recognized | $ 3,321 | ||||||
Share-based compensation, nonvested awards, not yet recognized, period for recognition | 2 years 5 months 19 days | ||||||
Restricted Stock Units (RSUs) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Allocated share-based compensation expense | $ 203 | 283 | 217 | ||||
Share-based compensation, nonvested awards, not yet recognized | $ 50 | ||||||
Share-based compensation, nonvested awards, not yet recognized, period for recognition | 6 months | ||||||
New Signing Options and New Closing Options [Member] | Monte carlo [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Risk free interest rate | 0.70% | ||||||
Expected volatility | 47.00% | ||||||
Expected life of awards | 6 years | ||||||
Weighted average fair value of options granted during the period | $ 1.27 | ||||||
Chief Executive Officer [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of options granted to purchase shares of common stock | 350,000 | 350,000 | |||||
Chief Executive Officer [Member] | New Signing Options [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of options granted to purchase shares of common stock | 350,000 | ||||||
Chief Executive Officer [Member] | New Closing Options [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of options granted to purchase shares of common stock | 350,000 | ||||||
Chief Financial Officer [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of options granted to purchase shares of common stock | 150,000 | 150,000 | |||||
Chief Financial Officer [Member] | New Signing Options [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of options granted to purchase shares of common stock | 150,000 | ||||||
Chief Financial Officer [Member] | New Closing Options [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of options granted to purchase shares of common stock | 150,000 | ||||||
David Mahlab [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Allocated share-based compensation expense | $ 278 | $ 0 | $ 1,261 | ||||
2018 Incentive Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 6,500,000 | ||||||
Option vested term | 10 years | ||||||
Increase the number shares available for issuance | 2,163,000 | ||||||
Options exercise price per share | $ 6 | $ 6.28 | |||||
2018 Incentive Plan [Member] | New Signing Options [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options exercise price per share | $ 6.28 | ||||||
Vesting description | vest and become exercisable in full on December 31, 2022 if the volume weighted average price of the Company’s common stock during a consecutive 30 trading day period (the “30 Day VWAP”) reaches $12.00 at any point prior to December 31, 2022 | ||||||
2018 Incentive Plan [Member] | New Closing Options [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options exercise price per share | $ 6 | ||||||
Vesting description | vest and become exercisable immediately upon the Company achieving a 30 Day VWAP of $10.00 | ||||||
2018 Incentive Plan [Member] | Minimum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Option vested term | 4 years | ||||||
2018 Incentive Plan [Member] | Maximum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Option vested term | 5 years |
SCHEDULE OF LONG TERM DEBT (Det
SCHEDULE OF LONG TERM DEBT (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Disclosure [Abstract] | ||
Short-term bank debt | $ 280 | |
Current maturities of long-term debt | 6,114 | 5,299 |
Long term debt - less current maturities | $ 18,110 | $ 23,179 |
SCHEDULE OF MATURITIES OF LONG
SCHEDULE OF MATURITIES OF LONG TERM DEBT (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Disclosure [Abstract] | ||
2022 | $ 6,114 | |
2023 | 5,200 | |
2024 | 12,910 | |
Long term debt | 24,224 | |
Less: Current Portion | 6,114 | $ 5,299 |
Total | $ 18,110 | $ 23,179 |
SHORT-TERM BANK DEBT AND LONG_3
SHORT-TERM BANK DEBT AND LONG-TERM DEBT (Details Narrative) - USD ($) $ in Thousands | Aug. 23, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Credit Agreement [Member] | ||||
Short-term Debt [Line Items] | ||||
Proceeds from Issuance of Debt | $ 30,000 | |||
Debt Issuance Costs, Net | 742 | |||
Amortization of Debt Issuance Costs | 290 | $ 31 | $ 18 | |
Interest Expense, Debt | 1,078 | $ 1,451 | $ 379 | |
Credit Agreement [Member] | Revolving Credit Facility [Member] | ||||
Short-term Debt [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 10,000 | |||
Credit Agreement [Member] | Two Senior Secured Term Loan [Member] | ||||
Short-term Debt [Line Items] | ||||
Debt Instrument, Face Amount | 30,000 | |||
Credit Agreement [Member] | TermA Facility [Member] | ||||
Short-term Debt [Line Items] | ||||
Debt Instrument, Face Amount | $ 20,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.73% | |||
Credit Agreement [Member] | TermB Facility [Member] | ||||
Short-term Debt [Line Items] | ||||
Debt Instrument, Face Amount | $ 10,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 5.89% | |||
Credit Agreement [Member] | Revolving Facility [Member] | ||||
Short-term Debt [Line Items] | ||||
Debt Instrument, Interest Rate Terms | The interest rate for the Revolving Facility is, with respect to NIS-denominated loans, Hapoalim’s prime rate + 2.5%, and with respect to US dollar-denominated loans, LIBOR + 4.6%. In addition, the Company agreed to pay a 1% commitment fee on the unutilized and uncancelled availability under the Revolving Facility | |||
Amended Credit Agreement [Member] | ||||
Short-term Debt [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 1.00% | |||
Deposits | $ 3,000 | |||
Amended Credit Agreement [Member] | Minimum [Member] | ||||
Short-term Debt [Line Items] | ||||
Debt Instrument, Interest Rate, Increase (Decrease) | 0.50% | |||
Amended Credit Agreement [Member] | TermA Facility [Member] | ||||
Short-term Debt [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.65% | |||
Amended Credit Agreement [Member] | TermB Facility [Member] | ||||
Short-term Debt [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% |
SCHEDULE OF ACCOUNTS PAYABLE AN
SCHEDULE OF ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Payables and Accruals [Abstract] | ||
Accounts payable | $ 17,748 | $ 9,877 |
Accrued warranty | 1,146 | 705 |
Accrued compensation | 6,644 | 5,581 |
Government authorities | 2,080 | 3,047 |
Other current liabilities | 1,397 | 1,015 |
Accounts payable and accrued expenses | $ 29,015 | $ 20,225 |
SCHEDULE OF PRODUCT WARRANTY LI
SCHEDULE OF PRODUCT WARRANTY LIABILITY (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | |||
Payables and Accruals [Abstract] | ||||
Accrued warranty reserve, beginning of year | $ 807 | [1] | $ 742 | |
Accrual for product warranties issued | 1,335 | 784 | ||
Product replacements and other warranty expenditures | (411) | (667) | ||
Expiration of warranties | (398) | (52) | ||
Accrued warranty reserve, end of period | [1] | $ 1,333 | $ 807 | |
[1] | Includes accrued warranty included in other long-term liabilities at December 31, 2020 and 2021 of $ 102 187 |
SCHEDULE OF PRODUCT WARRANTY _2
SCHEDULE OF PRODUCT WARRANTY LIABILITY (Details) (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Other Noncurrent Liabilities [Member] | ||
Product Warranty Accrual, Noncurrent | $ 187 | $ 102 |
ACCOUNTS PAYABLE AND ACCRUED _3
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details Narrative) | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
Warranty term description | The Company’s products are warranted against defects in materials and workmanship for a period of 1-3 years from the date of acceptance of the product by the customer |
Extended warranty coverage description | The customers may purchase an extended warranty providing coverage up to a maximum of 60 months |
SCHEDULE OF COMPONENTS OF LEASE
SCHEDULE OF COMPONENTS OF LEASE EXPENSE (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Leases | ||
Short term lease cost | $ 563 | $ 584 |
SCHEDULE OF CASH FLOW INFORMATI
SCHEDULE OF CASH FLOW INFORMATION AND NON-CASH ACTIVITY OF OPERATING LEASES (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Leases | ||
Right-of-use assets obtained in exchange for lease obligations | $ 2,695 | $ 4,822 |
SCHEDULE OF WEIGHTED AVERAGE RE
SCHEDULE OF WEIGHTED AVERAGE REMAINING LEASE TERM AND DISCOUNT RATE (Details) | Dec. 31, 2021 |
Leases | |
Weighted-average remaining lease term (in years) | 3 years 6 months |
Weighted-average discount rate | 4.50% |
SCHEDULED MATURITIES OF OPERATI
SCHEDULED MATURITIES OF OPERATING LEASE LIABILITIES (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Leases | |
2022 | $ 3,034 |
2023 | 2,620 |
2024 | 1,920 |
2025 | 1,780 |
2026 | 744 |
Thereafter | 959 |
Total lease payments | 11,057 |
Less: Imputed interest | (1,050) |
Present value of lease liabilities | $ 10,007 |
LEASES (Details Narrative)
LEASES (Details Narrative) | 12 Months Ended |
Dec. 31, 2021 | |
Lease term option to extend | options to extend the lease term for up to five years |
Minimum [Member] | |
Lease term | 1 year |
Maximum [Member] | |
Lease term | 7 years |
STOCKHOLDERS_ EQUITY (Details N
STOCKHOLDERS’ EQUITY (Details Narrative) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | Jun. 09, 2021 | Feb. 01, 2021 | May 14, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Oct. 03, 2019 |
Subsidiary, Sale of Stock [Line Items] | |||||||
Preferred stock, shares authorized to issue | 150 | ||||||
Preferred stock, par value | $ 0.01 | $ 0.01 | |||||
Preferred stock, shares authorized | 50,000 | 50,000 | |||||
Dividends Payable | $ 0 | $ 0 | |||||
Stock Redeemed or Called During Period, Shares | 10 | ||||||
Share Price | $ 1,450 | $ 3.81 | $ 2.69 | $ 2.20 | |||
Preferred Stock [Member] | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Preferred stock, shares authorized | 50 | ||||||
Series A Preferred Stock [Member] | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Stock Issued During Period, Shares, New Issues | 0 | 1 | |||||
Preferred stock, shares authorized | 100 | ||||||
Preferred stock, shares issued | 50 | ||||||
Preferred stock, liquidation preference description | The Series A Preferred Stock has a liquidation preference equal to the greater of (i) the original issuance price of $1,000.00 per share, subject to certain adjustments (the “Series A Issue Price”), plus all accrued and unpaid dividends thereon (except in the case of a deemed liquidation event, then 150% of such amount) and (ii) the amount such holder would have received if the Series A Preferred Stock had converted into common stock immediately prior to such liquidation | ||||||
Preferred stock, liquidation price per share | $ 1,000 | ||||||
Dividends Payable, Current | $ 4,112 | $ 0 | |||||
Preferred Stock, Voting Rights | From and after the delivery of a Series A Voting Activation Notice, all holders of the Series A Preferred Stock will be entitled to vote with the holders of common stock as a single class on an as-converted basis (provided, however, that any holder of Series A Preferred Stock shall not be entitled to cast votes for the number of shares of common stock issuable upon conversion of such shares of Series A Preferred Stock held by such holder that exceeds the quotient of (1) the aggregate Series A Issue Price for such shares of Series A Preferred Stock divided by (2) $5.57 (subject to adjustment for stock splits, stock dividends, combinations, reclassifications and similar events, as applicable)). So long as shares of Series A Preferred Stock are outstanding and convertible into shares of common stock that represent at least 10% of the voting power of the common stock, or the Investors or their affiliates continue to hold at least 33% of the aggregate amount of Series A Preferred Stock issued to the Investors on the Original Issuance Date, the consent of the holders of at least a majority of the outstanding shares of Series A Preferred Stock will be necessary for the Company to, among other things, (i) liquidate the Company or any operating subsidiary or effect any deemed liquidation event (as such term is defined in the Charter), except for a deemed liquidation event in which the holders of Series A Preferred Stock receive an amount in cash not less than the Redemption Price (as defined below), (ii) amend the Company’s organizational documents in a manner that adversely affects the Series A Preferred Stock, (iii) issue any securities that are senior to, or equal in priority with, the Series A Preferred Stock or issue additional shares of Series A Preferred Stock to any person other than the Investors or their affiliates, (iv) incur indebtedness above the agreed-upon threshold, (v) change the size of the Company’s board of directors to a number other than seven, or (vi) enter into certain affiliated arrangements or transactions | ||||||
Conversion price per share | $ 7.319 | ||||||
Redemption, description | At any time after the third anniversary of the Original Issuance Date, subject to certain conditions, the Company may redeem the Series A Preferred Stock for an amount per share, equal to the greater of (i) the product of (x) 1.5 multiplied by (y) the sum of the Series A Issue Price, plus all accrued and unpaid dividends and (ii) the product of (x) the number of shares of common stock issuable upon conversion of such Series A Preferred Stock multiplied by (y) the volume weighted average price of the common stock during the 30 consecutive trading day period ending on the trading date immediately prior to the date of such redemption notice or, if calculated in connection with a deemed liquidation event, the value ascribed to a share of common stock in such deemed liquidation event (the “Redemption Price”) | ||||||
Series A Preferred Stock [Member] | Minimum [Member] | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Preferred stock, dividend rate | 7.50% | ||||||
Series A Preferred Stock [Member] | Maximum [Member] | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Preferred stock, dividend rate | 17.50% | ||||||
Equity Distribution Agreement [Member] | Canaccord Genuity LLC [Member] | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Proceeds from offering price | $ 25,000 | ||||||
Commission percentage | 3.00% | ||||||
Sales Agreement [Member] | Canaccord Genuity LLC [Member] | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Number of shares issued | 810 | ||||||
Proceeds from sale of stock | $ 4,000 | ||||||
Commissions | $ 125 | ||||||
Underwritten Public Offering [Member] | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Stock Issued During Period, Shares, New Issues | 4,428 | ||||||
Proceeds from offering price | $ 28,800 |
SCHEDULE OF ACCUMULATED OTHER C
SCHEDULE OF ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |||
Foreign currency translation adjustment, Balance at Beginning | $ 399 | $ 265 | $ (388) |
Unrealized gain (losses) on investments, Balance at Beginning | (47) | ||
Foreign currency translation adjustment, Balance at Beginning | 399 | 265 | (435) |
Foreign currency translation adjustment, Net current period change | (8) | 134 | 653 |
Unrealized gain (losses) on investments, Net current period change | 47 | ||
Foreign currency translation adjustment, Net current period change | (8) | 134 | 700 |
Foreign currency translation adjustment, Balance at End | 391 | 399 | 265 |
Unrealized gain (losses) on investments, Balance at End | |||
Accumulated other comprehensive income, Balance at End | $ 391 | $ 399 | $ 265 |
SCHEDULE OF REVENUES AND LONG L
SCHEDULE OF REVENUES AND LONG LIVED ASSETS BY GEOGRAPHICAL REGION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total Revenue | $ 126,208 | $ 113,593 | $ 81,915 |
Long lived assets | 8,988 | 8,804 | 8,240 |
UNITED STATES | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total Revenue | 50,844 | 46,047 | 60,544 |
Long lived assets | 1,123 | 1,425 | 1,931 |
ISRAEL | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total Revenue | 44,849 | 38,719 | 9,650 |
Long lived assets | 3,675 | 3,282 | 2,285 |
Other [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total Revenue | 30,515 | 28,827 | 11,721 |
Long lived assets | $ 4,190 | $ 4,097 | $ 4,023 |
SCHEDULE OF LOSS BEFORE INCOME
SCHEDULE OF LOSS BEFORE INCOME TAXES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
U.S. operations | $ (15,017) | $ (15,492) | $ (10,888) |
Foreign operations | 4,331 | 7,520 | (168) |
Net loss before income taxes | $ (10,686) | $ (7,972) | $ (11,056) |
SCHEDULE OF PROVISION FOR INCOM
SCHEDULE OF PROVISION FOR INCOME TAXES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Federal | |||
State | 16 | 45 | 119 |
Foreign | 127 | 54 | (44) |
Federal | |||
State | |||
Foreign | 2,464 | 939 | |
Total (benefit) provision for income taxes | $ 2,607 | $ 1,038 | $ 75 |
SCHEDULE OF STATUTORY FEDERAL I
SCHEDULE OF STATUTORY FEDERAL INCOME TAX RATE (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Income tax benefit at the federal statutory rate | $ (2,243) | $ (1,674) | $ (2,317) |
State and local income taxes, net of federal taxes | 410 | (421) | (213) |
Increase (decrease) in valuation allowance | (203) | 2,595 | 402 |
Remeasurement of deferred tax adjustments | 1,302 | (48) | 1,032 |
Permanent differences and other | 269 | 138 | 1,066 |
Foreign rate differential | 1,681 | (586) | (38) |
GILTI inclusion | 1,312 | 1,008 | |
Other | 79 | 26 | (7) |
Income tax benefit | $ 2,607 | $ 1,038 | $ (75) |
SCHEDULE OF DEFERRED TAX ASSETS
SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Income Tax Disclosure [Abstract] | ||
Net operating loss carryforwards | $ 28,042 | $ 32,843 |
Capital loss carryforwards | 11,398 | 11,025 |
Deferred revenue | 2,097 | 1,775 |
Stock-based compensation | 801 | 886 |
Federal research and development tax credits | 1,058 | 1,058 |
Intangibles, amortization | 1,718 | |
Inventories | 344 | 65 |
Bad Debt Reserve | 785 | 98 |
Deferred lease liability | 714 | 626 |
Other deductible temporary differences | 3,880 | 3,429 |
Total gross deferred tax assets | 49,119 | 53,523 |
Less: valuation allowance | (44,228) | (46,070) |
Deferred tax assets, net of valuation allowance | 4,891 | 7,453 |
Intangible amortization | (5,192) | (5,151) |
ROU assets | (657) | (599) |
Fixed assets, depreciation | (197) | |
Total deferred tax liabilities | (5,849) | (5,947) |
Net deferred tax (liabilities)/assets | $ (958) | $ 1,506 |
SCHEDULE OF UNRECOGNIZED TAX PO
SCHEDULE OF UNRECOGNIZED TAX POSITIONS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Balance at the beginning of the year | $ 423 | $ 390 |
Additions based on tax provisions taken related to current year | 62 | 33 |
Balance at the end of year | $ 485 | $ 423 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Loss Carryforwards [Line Items] | ||
Deferred Tax Assets, Valuation Allowance | $ 44,228 | $ 46,070 |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 1,842 | $ 3,953 |
NEW JERSEY | ||
Operating Loss Carryforwards [Line Items] | ||
Operating Loss Carryforwards | 5,071 | |
Domestic Tax Authority [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating Loss Carryforwards | 83,085 | |
State and Local Jurisdiction [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating Loss Carryforwards | 35,037 | |
Foreign Tax Authority [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating Loss Carryforwards | $ 35,902 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) | Aug. 14, 2018 | Aug. 31, 2014 | Dec. 31, 2021 |
Operating Loss Carryforwards [Line Items] | |||
[custom:LossContingencyDamagesSoughtValueRamaining] | $ 45 | ||
Pointer do Brasil Comercial Ltda. [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Loss Contingency, Damages Sought, Value | $ 10,476 | ||
Brazilian ICMS tax [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Income Tax Examination, Interest Expense | $ 190,000 | ||
Income Tax Examination, Penalties Expense | 957,000 | ||
Income Tax Examination, Penalties and Interest Expense | $ 1,147,000 |