Document_And_Entity_Informatio
Document And Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Aug. 08, 2014 | |
Document Information [Line Items] | ' | ' |
Entity Registrant Name | 'ID SYSTEMS INC | ' |
Entity Central Index Key | '0000049615 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Trading Symbol | 'IDSY | ' |
Entity Common Stock, Shares Outstanding | ' | 12,274,831 |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Jun-14 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Document Fiscal Year Focus | '2014 | ' |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | |
Current assets: | ' | ' | |
Cash and cash equivalents | $7,109,000 | $6,582,000 | [1] |
Restricted cash | 300,000 | 300,000 | [1] |
Investments - short term | 2,850,000 | 4,090,000 | [1] |
Accounts receivable, net of allowance for doubtful accounts of $955,000 and $1,250,000 in 2013 and 2014, respectively | 10,188,000 | 9,574,000 | [1] |
Financing receivables - current, net of allowance for doubtful accounts of $-0- in 2013 and 2014 | 4,160,000 | 4,051,000 | [1] |
Inventory, net | 4,732,000 | 5,156,000 | [1] |
Deferred costs - current | 2,110,000 | 2,112,000 | [1] |
Prepaid expenses and other current assets | 1,162,000 | 909,000 | [1] |
Deferred tax asset - current | 0 | 63,000 | [1] |
Total current assets | 32,611,000 | 32,837,000 | [1] |
Investments - long term | 4,366,000 | 3,100,000 | [1] |
Financing receivables - less current portion | 8,949,000 | 10,255,000 | [1] |
Deferred costs - less current portion | 2,918,000 | 2,861,000 | [1] |
Fixed assets, net | 1,955,000 | 2,239,000 | [1] |
Goodwill | 1,837,000 | 1,837,000 | [1] |
Intangible assets, net | 1,518,000 | 2,064,000 | [1] |
Other assets | 325,000 | 322,000 | [1] |
Assets, Total | 54,479,000 | 55,515,000 | [1] |
Current liabilities: | ' | ' | |
Accounts payable and accrued expenses | 8,072,000 | 6,264,000 | [1] |
Capital lease obligation - current | 154,000 | 144,000 | [1] |
Deferred revenue - current | 5,253,000 | 4,641,000 | [1] |
Total current liabilities | 13,479,000 | 11,049,000 | [1] |
Capital lease obligation - less current portion | 70,000 | 149,000 | [1] |
Deferred rent | 323,000 | 330,000 | [1] |
Deferred revenue - less current portion | 7,055,000 | 6,538,000 | [1] |
Liabilities, Total | 20,927,000 | 18,066,000 | [1] |
Commitments and Contingencies (Note 21) | ' | ' | [1] |
STOCKHOLDERS' EQUITY | ' | ' | |
Preferred stock; authorized 5,000,000 shares, $0.01 par value; none issued | 0 | 0 | [1] |
Common stock; authorized 50,000,000 shares, $0.01 par value; 12,835,000 and 12,887,000 shares issued at December 31, 2013 and June 30, 2014, respectively; shares outstanding, 12,196,000 and 12,224,000 at December 31, 2013 and June 30, 2014, respectively | 123,000 | 123,000 | [1] |
Additional paid-in capital | 105,169,000 | 104,479,000 | [1] |
Accumulated deficit | -68,137,000 | -63,601,000 | [1] |
Accumulated other comprehensive income (loss) | -20,000 | -106,000 | [1] |
Treasury stock; 639,000 shares and 663,000 shares at cost at December 31, 2013 and June 30, 2014, respectively | -3,583,000 | -3,446,000 | [1] |
Total stockholders’ equity | 33,552,000 | 37,449,000 | [1] |
Total liabilities and stockholders’ equity | $54,479,000 | $55,515,000 | [1] |
[1] | Derived from audited balance sheet as of December 31, 2013 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets [Parenthetical] (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Allowance for doubtful accounts receivable (in dollars) | $1,250,000 | $955,000 |
Allowance for notes and sales type lease receivable doubtfull accounts (in dollars) | $0 | $0 |
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 12,887,000 | 12,835,000 |
Common stock, shares outstanding | 12,224,000 | 12,196,000 |
Treasury stock, shares | 663,000 | 639,000 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Revenue: | ' | ' | ' | ' |
Products | $7,161,000 | $5,303,000 | $12,951,000 | $9,078,000 |
Services | 4,252,000 | 4,067,000 | 8,198,000 | 8,306,000 |
Revenue, Net, Total | 11,413,000 | 9,370,000 | 21,149,000 | 17,384,000 |
Cost of revenue: | ' | ' | ' | ' |
Cost of products | 4,769,000 | 3,005,000 | 8,071,000 | 5,699,000 |
Cost of services | 1,520,000 | 1,515,000 | 2,970,000 | 2,999,000 |
Cost of Goods and Services Sold, Total | 6,289,000 | 4,520,000 | 11,041,000 | 8,698,000 |
Gross profit | 5,124,000 | 4,850,000 | 10,108,000 | 8,686,000 |
Operating expenses: | ' | ' | ' | ' |
Selling, general and administrative expenses | 5,651,000 | 5,595,000 | 12,471,000 | 11,111,000 |
Research and development expenses | 1,343,000 | 1,123,000 | 2,493,000 | 2,263,000 |
Operating Expenses, Total | 6,994,000 | 6,718,000 | 14,964,000 | 13,374,000 |
Loss from operations | -1,870,000 | -1,868,000 | -4,856,000 | -4,688,000 |
Interest income | 153,000 | 159,000 | 305,000 | 324,000 |
Other income, net | 12,000 | 2,000 | 15,000 | 35,000 |
Net loss | ($1,705,000) | ($1,707,000) | ($4,536,000) | ($4,329,000) |
Net loss per share - basic and diluted (in dollars per share) | ($0.14) | ($0.14) | ($0.38) | ($0.36) |
Weighted average common shares outstanding - basic and diluted (in shares) | 12,089,000 | 11,887,000 | 12,054,000 | 11,863,000 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (Loss) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Net loss | ($1,705,000) | ($1,707,000) | ($4,536,000) | ($4,329,000) |
Other comprehensive (loss) income, net: | ' | ' | ' | ' |
Unrealized (loss) gain on investments | 9,000 | -65,000 | 10,000 | -74,000 |
Reclassification of net realized investment (gains) losses included in net loss | 0 | 4,000 | 0 | -24,000 |
Foreign currency translation adjustment | 17,000 | -22,000 | 76,000 | -86,000 |
Total other comprehensive loss | 26,000 | -83,000 | 86,000 | -184,000 |
Comprehensive loss | ($1,679,000) | ($1,790,000) | ($4,450,000) | ($4,513,000) |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statement of Changes in Stockholders' Equity (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Treasury Stock [Member] | |
Balance at Dec. 31, 2013 | $37,449,000 | [1] | $123,000 | $104,479,000 | ($63,601,000) | ($106,000) | ($3,446,000) |
Balance (in shares) at Dec. 31, 2013 | ' | 12,835,000 | ' | ' | ' | ' | |
Net loss | -4,536,000 | 0 | 0 | -4,536,000 | 0 | 0 | |
Foreign currency translation adjustment | 76,000 | 0 | 0 | 0 | 76,000 | 0 | |
Unrealized gain on investments | 10,000 | 0 | 0 | 0 | 10,000 | 0 | |
Shares issued pursuant to exercise of stock options | 58,000 | ' | 58,000 | ' | ' | ' | |
Shares issued pursuant to exercise of stock options (in shares) | ' | 15,000 | ' | ' | ' | ' | |
Issuance of restricted stock | 0 | 0 | 0 | 0 | 0 | 0 | |
Issuance of restricted stock (in shares) | ' | 109,000 | ' | ' | ' | ' | |
Shares withheld pursuant to exercise of stock options and restricted stock | -137,000 | 0 | 0 | 0 | 0 | -137,000 | |
Forfeiture of restricted shares (in shares) | ' | -72,000 | ' | ' | ' | ' | |
Stock based compensation - restricted stock | 314,000 | 0 | 314,000 | 0 | 0 | 0 | |
Stock based compensation - options and performance shares | 318,000 | 0 | 318,000 | 0 | 0 | 0 | |
Balance at Jun. 30, 2014 | $33,552,000 | $123,000 | $105,169,000 | ($68,137,000) | ($20,000) | ($3,583,000) | |
Balance (in shares) at Jun. 30, 2014 | ' | 12,887,000 | ' | ' | ' | ' | |
[1] | Derived from audited balance sheet as of December 31, 2013 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (USD $) | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | ||
Cash flows from operating activities: | ' | ' | |
Net loss | ($4,536,000) | ($4,329,000) | |
Adjustments to reconcile net loss to cash used in operating activities: | ' | ' | |
Bad debt expense | 367,000 | 212,000 | |
Proceeds from sale of New Jersey net operating loss carryforwards | 63,000 | 662,000 | |
Stock-based compensation expense | 632,000 | 604,000 | |
Depreciation and amortization | 1,114,000 | 1,044,000 | |
Inventory reserve | 40,000 | 5,000 | |
Other non-cash items | 13,000 | -7,000 | |
Changes in: | ' | ' | |
Accounts receivable | -974,000 | 1,103,000 | |
Financing receivables | 1,207,000 | -546,000 | |
Inventory | 384,000 | -581,000 | |
Prepaid expenses and other assets | -256,000 | 72,000 | |
Deferred costs | -55,000 | -164,000 | |
Deferred revenue | 1,129,000 | 1,133,000 | |
Accounts payable and accrued expenses | 1,671,000 | 291,000 | |
Net cash (used in) provided by operating activities | 799,000 | -501,000 | |
Cash flows from investing activities: | ' | ' | |
Expenditures for fixed assets including website development costs | -284,000 | -213,000 | |
Purchase of investments | -3,956,000 | -3,677,000 | |
Maturities of investments | 3,921,000 | 6,267,000 | |
Net cash provided by (used in) investing activities | -319,000 | 2,377,000 | |
Cash flows from financing activities: | ' | ' | |
Principal payments of capital lease obligation | -69,000 | 0 | |
Proceeds from exercise of stock options | 58,000 | 10,000 | |
Net cash provided by (used in) financing activities | -11,000 | 10,000 | |
Effect of foreign exchange rate changes on cash and cash equivalents | 58,000 | -239,000 | |
Net increase (decrease) in cash and cash equivalents | 527,000 | 1,647,000 | |
Cash and cash equivalents - beginning of period | 6,582,000 | [1] | 1,614,000 |
Cash and cash equivalents - end of period | 7,109,000 | 3,261,000 | |
Supplemental disclosure of cash flow information: | ' | ' | |
Cash paid for Taxes | 0 | 0 | |
Cash paid for Interest | 17,000 | 0 | |
Noncash activities: | ' | ' | |
Unrealized gain (loss) on investments | 10,000 | -98,000 | |
Shares withheld pursuant to stock issuance | $137,000 | $202,000 | |
[1] | Derived from audited balance sheet as of December 31, 2013 |
DESCRIPTION_OF_THE_COMPANY_AND
DESCRIPTION OF THE COMPANY AND BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2014 | |
Organization, Consolidation and Presentation Of Financial Statements [Abstract] | ' |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | ' |
NOTE 1 - DESCRIPTION OF THE COMPANY AND BASIS OF PRESENTATION | |
Description of the Company | |
I.D. Systems, Inc. and its subsidiaries (collectively, the “Company,” “we,” “our” or “us”) develop, market and sell wireless machine-to-machine (“M2M”) solutions for managing and securing high-value enterprise assets. These assets include industrial vehicles, such as forklifts, airport ground support equipment, rental vehicles and transportation assets, such as dry van trailers, refrigerated trailers, railcars and containers. The Company’s patented wireless asset management system addresses the needs of organizations to control, track, monitor and analyze their assets. Our cloud-based software tool called I.D. Systems Analytics (“Analytics”), is designed to provide a single, integrated view of asset activity across multiple locations, generating enterprise-wide benchmarks and peer-industry comparisons to provide an even deeper layer of insights into asset operations. Analytics determines key performance indicators (“KPIs”) relating to the performance of managed assets. The Company’s solutions enable customers to achieve tangible economic benefits by making timely, informed decisions that increase the safety, security, productivity and efficiency of their operations. The Company outsources its hardware manufacturing operations to contract manufacturers. | |
I.D. Systems, Inc. was incorporated in Delaware in 1993 and commenced operations in January 1994. | |
Basis of Presentation | |
The unaudited interim condensed consolidated financial statements include the accounts of I.D. Systems, Inc. and its wholly owned subsidiaries, Asset Intelligence, LLC (“AI”), I.D. Systems GmbH (“IDS GmbH”) and I.D. Systems (UK) Ltd (formerly Didbox Ltd.) (“IDS Ltd”) (collectively referred to as the “Company”). All material intercompany balances and transactions have been eliminated in consolidation. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, such statements include all adjustments (consisting only of normal recurring items) which are considered necessary for a fair presentation of the consolidated financial position of the Company as of June 30, 2014, the consolidated results of its operations for the three- and six-month periods ended June 30, 2013 and 2014, the consolidated change in stockholders’ equity for the six-month period ended June 30, 2014 and the consolidated cash flows for the six-month periods ended June 30, 2013 and 2014. The results of operations for the six-month period ended June 30, 2014 are not necessarily indicative of the operating results for the full year. These financial statements should be read in conjunction with the audited consolidated financial statements and related disclosures for the year ended December 31, 2013 included in the Company’s Annual Report on Form 10-K for the year then ended. | |
Certain amounts in the prior period’s condensed consolidated financial statements have been reclassified for comparative purposes. | |
SIGNIFICANT_TRANSACTION_AVIS_B
SIGNIFICANT TRANSACTION - AVIS BUDGET GROUP INC. | 6 Months Ended |
Jun. 30, 2014 | |
Significant Transactions [Abstract] | ' |
Significant Transactions [Text Block] | ' |
NOTE 2 - SIGNIFICANT TRANSACTION - AVIS BUDGET GROUP INC. | |
In connection with the Master Agreement (as defined below), the Company entered into a Purchase Agreement (the “Purchase Agreement”), dated as of August 22, 2011 (the “Effective Date”), with Avis Budget Group, Inc. (“Avis Budget Group”), pursuant to which Avis Budget Group purchased from the Company, for an aggregate purchase price of $4,604,500 (or $4.60 per share, which price was based on the average closing price of our common stock for the twenty trading days prior to the Effective Date), (i) 1,000,000 shares (the “Shares”) of the Company’s common stock, and (ii) a warrant (the “Warrant”) to purchase up to an aggregate of 600,000 shares of our common stock (the “Warrant Shares”). The Company issued the Shares in 2011 from treasury stock, reflecting the cost of such shares on a specific identification basis. | |
The Warrant has an exercise price of $10.00 per share of common stock. The Warrant is exercisable (i) with respect to 100,000 of the Warrant Shares, at any time after the Effective Date and on or before the fifth (5th) anniversary thereof, and (ii) with respect to 500,000 of the Warrant Shares, at any time on or after the date (if any) on which Avis Budget Car Rental, LLC (“ABCR”), a subsidiary of Avis Budget Group and the Avis entity that is the counterparty under the Master Agreement described below, executes and delivers to the Company SOW#2 (which is described below), and on or before the fifth (5th) anniversary of the Effective Date. The fair value of the Warrant for 100,000 shares of approximately $137,000 was recorded as a sales incentive in the Condensed Consolidated Statement of Operations in the third quarter of 2011. The Company has not recognized the impact of the remaining 500,000 shares underlying the Warrant in the Condensed Consolidated Statement of Operations, as it is considered contingently issued as of June 30, 2014. See Note 11 to the Unaudited Condensed Consolidated Financial Statements for additional information. | |
Also on the Effective Date, the Company and ABCR entered into a Master Software License, Information Technology Services and Equipment Purchase Agreement (the “Master Agreement”) for the Company’s system relating to radio frequency identification (RFID) enabled rental car management and virtual location rental (collectively, the “System”). The order was placed pursuant to a statement of work (“SOW”) issued under the Master Agreement and related agreements with ABCR. | |
The Master Agreement governs the terms and conditions of the sales and license, and orders for hardware and for other related services will be contained in SOWs issued pursuant to the Master Agreement. The term of the Master Agreement continues until six (6) months after the termination or expiration of the last SOW under the Master Agreement. | |
ABCR hosts the System. As part of the Master Agreement, the Company also will provide ABCR with services for ongoing maintenance and support of the System (the “Maintenance Services”) for a period of 60 months from installation of the equipment. ABCR has the option to renew the period for twelve (12) months upon its expiry, and then after such 12-month period, the period can continue on a month-to-month basis (during which ABCR can terminate the period) for up to 48 additional months. | |
Under the terms of SOW#1, which was executed and delivered by ABCR on the Effective Date concurrent with the execution and delivery of the Master Agreement, ABCR has agreed to pay not less than $14,000,000 to the Company for the System and Maintenance Services, which covers 25,000 units, which relates to a limited subset of ABCR’s total fleet during this initial phase of the Master Agreement. During the fourth quarter of 2011, the Company delivered the first 5,000 units under SOW#1 and recognized approximately $1.7 million in product revenue and a sales-type lease receivable. The Company delivered the remaining 20,000 units under SOW#1 during the third quarter of 2012 and recognized approximately $6.9 million in product revenue and a sales-type lease receivable. | |
Under the terms of SOW#1, the Company is entitled to issue sixty (60) monthly invoices of up to $286,100 for the 30,000 units delivered under SOW#1 and a pilot agreement entered into between the Company and ABCR in 2009. In the event that ABCR terminates SOW#1, then ABCR would be liable to the Company for the net present value of all future remaining charges under SOW#1 at a negotiated discount rate per annum, with the payment due on the effective date of termination. | |
ABCR also has an option to proceed with Statement of Work 2 (“SOW#2”), pursuant to which the Company would sell to ABCR additional units. In the event ABCR purchases such additional units, then ABCR affiliates and franchisees will have the right to enter into agreements with the Company to purchase the System on substantially the same terms and conditions as are in the Master Agreement. The term of SOW#2 is sixty (60) months. | |
The Master Agreement provided for a period of exclusivity (the “Exclusivity Period”) commencing on the Effective Date and ending twelve (12) months after delivery of the 5,000th new unit pursuant to SOW#1. The Company and ABCR amended the Master Agreement to extend the Exclusivity Period, which was then scheduled to expire on July 31, 2013, to September 30, 2013. Although the Exclusivity Period expired, the Company and ABCR continue to negotiate for the expansion of the deployment across a larger segment of ABCR’s global fleet; however, there can be no assurance that they will enter into a definitive agreement. | |
The Master Agreement may be terminated by ABCR for cause (which is generally the Company’s material breach of its obligations under the Master Agreement), for convenience (subject to the termination fee detailed in the Master Agreement), upon a material adverse change to the Company (as defined in the Master Agreement), or for intellectual property infringement. The Company does not have the right to unilaterally terminate the Master Agreement. In the event that ABCR terminates SOW#1, then ABCR would be liable to the Company for the net present value of all future remaining charges under SOW#1 at a negotiated discount rate per annum, with the payment due on the effective date of termination. | |
CASH_AND_CASH_EQUIVALENTS
CASH AND CASH EQUIVALENTS | 6 Months Ended |
Jun. 30, 2014 | |
Cash and Cash Equivalents [Abstract] | ' |
Cash and Cash Equivalents Disclosure [Text Block] | ' |
NOTE 3 - CASH AND CASH EQUIVALENTS | |
The Company considers all highly liquid debt instruments purchased with an original maturity of three months or less 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) limits. | |
USE_OF_ESTIMATES
USE OF ESTIMATES | 6 Months Ended |
Jun. 30, 2014 | |
Use Of Estimates Disclosure [Abstract] | ' |
Use Of Estimates Disclosure [Text Block] | ' |
NOTE 4 - 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 stock-based compensation arrangements, measurements of fair value, realization of deferred tax assets, the impairment of tangible and intangible assets, inventory reserves, allowance for doubtful accounts, warranty reserves and deferred revenue and costs. Actual results could differ from those estimates. | |
INVESTMENTS
INVESTMENTS | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | ' | |||||||||||||
NOTE 5 - INVESTMENTS | ||||||||||||||
The Company’s investments include debt securities, U.S. Treasury Notes, government and state agency bonds, mutual funds, corporate bonds and commercial paper, which are classified as either available for sale, held to maturity or trading, depending on management’s investment intentions relating to these securities. As of June 30, 2013 and 2014, all of the Company’s investments are classified as available for sale. Available for sale securities are measured at fair value based on quoted market values of the securities, with the unrealized gain and (losses) reported as comprehensive income or (loss). For the three- and six-month periods ended June 30, 2013, the Company reported unrealized loss of $(65,000) and $(74,000), respectively, and for the three- and six-month periods ended June 30, 2014, the Company reported unrealized gain of $9,000 and $10,000, respectively, on available for sale securities in total comprehensive loss. Realized gains and losses from the sale of available for sale securities are determined on a specific-identification basis. The Company has classified as short-term those securities that mature within one year and mutual funds. All other securities are classified as long-term. | ||||||||||||||
The following table summarizes the estimated fair value of investment securities designated as available for sale, excluding investment in mutual funds of $1,414,000, classified by the contractual maturity date of the security as of June 30, 2014: | ||||||||||||||
Fair Value | ||||||||||||||
Due within one year | $ | 1,436,000 | ||||||||||||
Due one year through three years | 4,366,000 | |||||||||||||
Due after three years | - | |||||||||||||
$ | 5,802,000 | |||||||||||||
The cost, gross unrealized gains (losses) and fair value of available for sale securities by major security types as of December 31, 2013 and June 30, 2014 are as follows: | ||||||||||||||
Unrealized | Unrealized | Fair | ||||||||||||
June 30, 2014 | Cost | Gain | Loss | Value | ||||||||||
Investments - short term | ||||||||||||||
Available for sale | ||||||||||||||
Mutual funds | $ | 1,414,000 | - | - | $ | 1,414,000 | ||||||||
Corporate bonds and commercial paper | 1,074,000 | 4,000 | -7,000 | 1,071,000 | ||||||||||
Government agency bonds | 365,000 | - | - | 365,000 | ||||||||||
Total investments - short term | 2,853,000 | 4,000 | -7,000 | 2,850,000 | ||||||||||
Marketable securities - long term | ||||||||||||||
Available for sale | ||||||||||||||
U.S. Treasury Notes | 2,576,000 | 1,000 | - | 2,577,000 | ||||||||||
Government agency bonds | 661,000 | - | -1,000 | 660,000 | ||||||||||
Corporate bonds and commercial paper | 1,125,000 | 5,000 | -1,000 | 1,129,000 | ||||||||||
Total investments - long term | 4,362,000 | 6,000 | -2,000 | 4,366,000 | ||||||||||
Total investments | $ | 7,215,000 | $ | 10,000 | $ | -9,000 | $ | 7,216,000 | ||||||
Unrealized | Unrealized | Fair | ||||||||||||
December 31, 2013 | Cost | Gain | Loss | Value | ||||||||||
Investments - short term | ||||||||||||||
Available for sale | ||||||||||||||
Government agency bonds | $ | 419,000 | $ | - | $ | - | $ | 419,000 | ||||||
Mutual funds | 1,386,000 | - | -4,000 | 1,382,000 | ||||||||||
Corporate bonds and commercial paper | 590,000 | 1,000 | -1,000 | 590,000 | ||||||||||
U.S. Treasury Notes | 1,697,000 | 2,000 | - | 1,699,000 | ||||||||||
Total available for sale - short term | 4,092,000 | 3,000 | -5,000 | 4,090,000 | ||||||||||
Investments - long term | ||||||||||||||
Available for sale | ||||||||||||||
U.S. Treasury Notes | 930,000 | - | -4,000 | 926,000 | ||||||||||
Government agency bonds | 612,000 | - | -7,000 | 605,000 | ||||||||||
Corporate bonds and commercial paper | 1,565,000 | 5,000 | -1,000 | 1,569,000 | ||||||||||
Total available for sale - long term | 3,107,000 | 5,000 | -12,000 | 3,100,000 | ||||||||||
Total investments | $ | 7,199,000 | $ | 8,000 | $ | -17,000 | $ | 7,190,000 | ||||||
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 participants’ assumptions. | |||||||||||||
At June 30, 2014, all of the Company’s investments are classified as Level 1 for fair value measurements. | ||||||||||||||
REVENUE_RECOGNITION
REVENUE RECOGNITION | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Deferred Revenue Disclosure [Abstract] | ' | |||||||
Deferred Revenue Disclosure [Text Block] | ' | |||||||
NOTE 6 - REVENUE RECOGNITION | ||||||||
The Company’s revenue is derived from: (i) sales of our industrial and rental fleet wireless asset management systems and services, which includes training and technical support; (ii) sales of our transportation asset management systems and spare parts sold to customers (for which title transfers on the date of customer receipt) and from the related communication services under contracts that generally provide for service over periods ranging from one to five years; (iii) post-contract maintenance and support agreements; and (iv) periodically, from leasing arrangements. | ||||||||
Our industrial and rental fleet wireless asset management systems consist of on-asset hardware, communication infrastructure and software. Revenue derived from the sale of our industrial and rental fleet wireless asset management systems is allocated to each element based upon vendor specific objective evidence (VSOE) of the selling price of the element. VSOE of the selling price is based upon the price charged when the element is sold separately. Revenue is recognized as each element is earned based on the selling price of each element based on VSOE, and when there are no undelivered elements that are essential to the functionality of the delivered elements. The Company’s system is typically implemented by the customer or a third party and, as a result, revenue is recognized when title and risk of loss passes to the customer, which usually is upon delivery of the system, persuasive evidence of an arrangement exists, sales price is fixed and determinable, collectability is reasonably assured and contractual obligations have been satisfied. In some instances, we are also responsible for providing installation services. The additional installation services, which could be performed by third parties, are considered another element in a multi-element deliverable and revenue for installation services is recognized at the time the installation is provided. Training and technical support revenue are recognized at time of performance. | ||||||||
The Company recognizes revenues from the sale of remote transportation asset management systems and spare parts when persuasive evidence of an arrangement exists, delivery has occurred, the price is fixed or determinable, and collectability is reasonably assured. These criteria include requirements that the delivery of future products or services under the arrangement is not required for the delivered items to serve their intended purpose. The Company has determined that the revenue derived from the sale of transportation asset management systems does not have stand-alone value to the customer separate from the communication services provided and, therefore, the arrangements constitute a single unit of accounting. Under the applicable accounting guidance, all of the Company’s billings for equipment and the related cost are deferred, recorded, and classified as a current and long-term liability and a current and long-term asset, respectively. Deferred revenue and cost are recognized over the service contract life, beginning at the time that a customer acknowledges acceptance of the equipment and service. The customer service contracts typically range from one to five years. The Company amortized and recognized $752,000 and $1,474,000 of deferred equipment revenue during the three- and six-month periods ended June 30, 2013, respectively, and $905,000 and $1,811,000 during the three- and six-month periods ended June 30, 2014, respectively. | ||||||||
The service revenue for our remote asset monitoring equipment relates to charges for monthly messaging usage and value-added features charges. The usage fee is a monthly fixed charge based on the expected utilization according to the rate plan chosen by the customer. Service revenue generally commences upon equipment installation and customer acceptance, and is recognized over the period such services are provided. | ||||||||
Revenue from remote asset monitoring equipment activation fees is deferred and amortized over the life of the contract. | ||||||||
Spare parts sales are reflected in product revenues and recognized on the date of customer receipt of the part. | ||||||||
The Company also derives revenue under leasing arrangements. Such arrangements provide for monthly payments covering the 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 also enters into post-contract maintenance and support agreements for its wireless asset management systems. Revenue is recognized ratably over the service period and the cost of providing these services is expensed as incurred. Deferred revenue also includes prepayment of extended maintenance and support contracts. | ||||||||
Under certain customer contracts, the Company invoices progress billings once certain milestones are met. The milestone terms vary by customer and can include the receipt of the customer purchase order, delivery, installation and launch. As the systems are delivered, and services are performed, and all of the criteria for revenue recognition are satisfied, the Company recognizes revenue. If the amount of revenue recognized for financial reporting purposes is greater than the amount invoiced, an unbilled receivable is recorded. If the amount invoiced is greater than the amount of revenue recognized for financial reporting purposes, deferred revenue is recorded. As of December 31, 2013 and June 30, 2014, unbilled receivables were $-0- and $8,000, respectively. | ||||||||
Sales taxes collected from customers and remitted to governmental authorities are accounted for on a net basis and therefore are excluded from revenues in the Condensed Consolidated Statements of Operations. | ||||||||
Deferred revenue consists of the following: | ||||||||
December 31, | June 30, | |||||||
2013 | 2014 | |||||||
Deferred activation fees | $ | 496,000 | $ | 513,000 | ||||
Deferred industrial equipment installation revenue | 258,000 | 196,000 | ||||||
Deferred maintenance revenue | 1,959,000 | 3,110,000 | ||||||
Deferred remote transportation asset management product revenue | 8,466,000 | 8,489,000 | ||||||
11,179,000 | 12,308,000 | |||||||
Less: Current portion | 4,641,000 | 5,253,000 | ||||||
Deferred revenue - less current portion | $ | 6,538,000 | $ | 7,055,000 | ||||
FINANCING_RECEIVABLES
FINANCING RECEIVABLES | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Receivables [Abstract] | ' | |||||||
Financing Receivables [TextBlock] | ' | |||||||
NOTE 7 - FINANCING RECEIVABLES | ||||||||
Financing receivables include notes and sales-type lease receivables from the sale of the Company’s products and services. Financing receivables consist of the following: | ||||||||
December 31, | June 30, | |||||||
2013 | 2014 | |||||||
Notes receivable | $ | 53,000 | $ | 40,000 | ||||
Sales-type lease receivable | 14,253,000 | 13,069,000 | ||||||
Less: Allowance for credit losses | - | - | ||||||
14,306,000 | 13,109,000 | |||||||
Less: Current portion | ||||||||
Notes receivable | 25,000 | 26,000 | ||||||
Sales-type lease receivable | 4,026,000 | 4,134,000 | ||||||
4,051,000 | 4,160,000 | |||||||
Financing receivables - less current portion | $ | 10,255,000 | $ | 8,949,000 | ||||
Notes receivable relate to product financing arrangements that exceed one year and bear interest at approximately 8% - 10%. The notes receivable are collateralized by the equipment being financed. Amounts collected on the notes receivable are included in net cash provided by operating activities in the Condensed Consolidated Statements of Cash Flows. Unearned interest income is amortized to interest income over the life of the notes using the effective-interest method. There were no sales of notes receivable during the six-month periods ended June 30, 2013 and 2014. | ||||||||
The present value of net investment in sales-type lease receivable is principally for three to five-year leases of the Company’s products and is reflected net of unearned income of $1,169,000 and $999,000 at December 31, 2013 and June 30, 2014, respectively, discounted at 2% - 29%. | ||||||||
The allowance for doubtful accounts represents the Company’s best estimate of the amount of credit losses in the Company’s existing notes and sales-type lease receivable. The allowance for doubtful accounts is determined on an individual note and lease basis if it is probable that the Company will not collect all principal and interest contractually due. The Company considers its customers’ financial condition and historical payment patterns in determining the customers’ probability of default. The impairment is measured based on the present value of expected future cash flows discounted at the note’s effective interest rate. There were no impairment losses recognized for the three- and six-month-periods ended June 30, 2013 and 2014. The Company does not accrue interest when a note or lease is considered impaired. When the ultimate collectability of the principal balance of the impaired note or lease is in doubt, all cash receipts on impaired notes or leases are applied to reduce the principal amount of such notes or leases until the principal has been recovered and are recognized as interest income thereafter. Impairment losses are charged against the allowance and increases in the allowance are charged to bad debt expense. Notes and leases are written off against the allowance when all possible means of collection have been exhausted and the potential for recovery is considered remote. The Company resumes accrual of interest when it is probable that the Company will collect the remaining principal and interest of an impaired note or lease. Notes and leases become past due based on how recently payments have been received. | ||||||||
Scheduled maturities of sales-type lease minimum lease payments outstanding as of June 30, 2014 are as follows: | ||||||||
Year ending December 31: | ||||||||
July - December 2014 | $ | 2,110,000 | ||||||
2015 | 3,980,000 | |||||||
2016 | 3,773,000 | |||||||
2017 | 2,484,000 | |||||||
2018 | 662,000 | |||||||
Thereafter | 60,000 | |||||||
13,069,000 | ||||||||
Less: Current portion | 4,134,000 | |||||||
Sales-type lease receivable - less current portion | $ | 8,935,000 | ||||||
INVENTORY
INVENTORY | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventory Disclosure [Text Block] | ' | |||||||
NOTE 8 - INVENTORY | ||||||||
Inventory, which primarily consists of finished goods and components used in the Company’s products, is stated at the lower of cost or market using the first-in first-out (FIFO) method. | ||||||||
Inventories consist of the following: | ||||||||
December 31, | June 30, | |||||||
2013 | 2014 | |||||||
Components | $ | 2,968,000 | $ | 2,661,000 | ||||
Finished goods | 2,188,000 | 2,071,000 | ||||||
$ | 5,156,000 | $ | 4,732,000 | |||||
FIXED_ASSETS
FIXED ASSETS | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property, Plant and Equipment Disclosure [Text Block] | ' | |||||||
NOTE 9 - FIXED ASSETS | ||||||||
Fixed assets are stated at cost, less accumulated depreciation and amortization, and are summarized as follows: | ||||||||
December 31, | June 30, | |||||||
2013 | 2014 | |||||||
Equipment | $ | 1,375,000 | $ | 1,456,000 | ||||
Computer software | 3,319,000 | 3,407,000 | ||||||
Computer hardware | 2,565,000 | 2,680,000 | ||||||
Furniture and fixtures | 371,000 | 371,000 | ||||||
Automobiles | 47,000 | 47,000 | ||||||
Leasehold improvements | 181,000 | 181,000 | ||||||
7,858,000 | 8,142,000 | |||||||
Accumulated depreciation and amortization | -5,619,000 | -6,187,000 | ||||||
$ | 2,239,000 | $ | 1,955,000 | |||||
As of December 31, 2013, the Company had expenditures of approximately $480,000, including $305,000 under a capital lease, for computer equipment which had not been placed in service. Depreciation expense is not recorded for such assets until they are placed in service. | ||||||||
Assets acquired under a capital lease, net of accumulated amortization of $28,000, were $277,000 as of June 30, 2014. If the assets acquired under a capital lease transfer title at the end of the lease term or contain a bargain purchase option, the assets are amortized over their estimated useful lives; otherwise, the assets are amortized over the respective lease term. Amortization expense for assets under capital lease was $-0- for the three- and six-months ended June 30, 2013 and $15,000 and $28,000, for the three- and six-months ended June 30, 2014, respectively. | ||||||||
Depreciation and amortization expense for the three- and six-month periods ended June 30, 2013 was $252,000 and $498,000, respectively, and for the three- and six-month periods ended June 30, 2014 was $290,000 and $568,000, respectively. This includes amortization of costs associated with computer software and website development for the three- and six-month periods ended June 30, 2013 of $141,000 and $283,000, respectively, and for the three- and six-month periods ended June 30, 2014 of $145,000 and $286,000, respectively. | ||||||||
The Company capitalizes in fixed assets the costs of software development and website development. Specifically, the assets comprise an implementation of Oracle Enterprise Resource Planning (ERP) software, enhancements to the VeriWiseTM systems, and a customer interface website (which is the primary tool used to provide data to our customers). The website employs updated web architecture and improved functionality and features, including, but not limited to, customization at the customer level, enhanced security features, custom virtual electronic geofencing of landmarks, global positioning system (GPS)-based remote mileage reporting, and richer mapping capabilities. The Company capitalized the costs incurred during the “development” and “enhancement” stages of the software and website development. Costs incurred during the “planning” and “post-implementation/operation” stages of development were expensed. The Company capitalized $2,000 and $89,000 for such projects for the six-month periods ended June 30, 2013 and 2014, respectively. | ||||||||
INTANGIBLE_ASSETS_AND_GOODWILL
INTANGIBLE ASSETS AND GOODWILL | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||
Goodwill and Intangible Assets Disclosure [Text Block] | ' | ||||||||||||
NOTE 10 - INTANGIBLE ASSETS AND GOODWILL | |||||||||||||
The following table summarizes identifiable intangible assets of the Company, which include identifiable intangible assets from the acquisition of IDS Ltd., PowerKey (the industrial vehicle monitoring products division of International Electronics, Inc. acquired by the Company in 2008) and AI as of December 31, 2013 and June 30, 2014: | |||||||||||||
June 30, 2014 | Useful | Gross | Accumulated | Net | |||||||||
Lives | Carrying | Amortization | Carrying | ||||||||||
(In Years) | Amount | Amount | |||||||||||
Amortized: | |||||||||||||
Patents | 11 | $ | 1,489,000 | $ | -609,000 | $ | 880,000 | ||||||
Tradename | 5 | 200,000 | -180,000 | 20,000 | |||||||||
Non-competition agreement | 3 | 234,000 | -234,000 | - | |||||||||
Technology | 5 | 50,000 | -47,000 | 3,000 | |||||||||
Workforce | 5 | 33,000 | -31,000 | 2,000 | |||||||||
Customer relationships | 5 | 4,499,000 | -4,051,000 | 448,000 | |||||||||
6,505,000 | -5,152,000 | 1,353,000 | |||||||||||
Unamortized: | |||||||||||||
Customer list | 104,000 | - | 104,000 | ||||||||||
Trademark and Tradename | 61,000 | - | 61,000 | ||||||||||
165,000 | - | 165,000 | |||||||||||
Total | $ | 6,670,000 | $ | -5,152,000 | $ | 1,518,000 | |||||||
Useful | Gross | Net | |||||||||||
Lives | Carrying | Accumulated | Carrying | ||||||||||
December 31, 2013 | (In Years) | Amount | Amortization | Amount | |||||||||
Amortized: | |||||||||||||
Patents | 11 | $ | 1,489,000 | $ | -541,000 | $ | 948,000 | ||||||
Tradename | 5 | 200,000 | -160,000 | 40,000 | |||||||||
Non-competition agreement | 3 | 234,000 | -234,000 | - | |||||||||
Technology | 5 | 50,000 | -42,000 | 8,000 | |||||||||
Workforce | 5 | 33,000 | -28,000 | 5,000 | |||||||||
Customer relationships | 5 | 4,499,000 | -3,601,000 | 898,000 | |||||||||
6,505,000 | -4,606,000 | 1,899,000 | |||||||||||
Unamortized: | |||||||||||||
Customer list | 104,000 | - | 104,000 | ||||||||||
Trademark and Tradename | 61,000 | - | 61,000 | ||||||||||
165,000 | - | 165,000 | |||||||||||
Total | $ | 6,670,000 | $ | -4,606,000 | $ | 2,064,000 | |||||||
Amortization expense for the three- and six-month periods ended June 30, 2013 was $253,000 and $546,000, respectively, and for the three- and six-month periods ended June 30, 2014 was $273,000 and $546,000, respectively. Estimated future amortization expense for each of the five succeeding fiscal years for these intangible assets is as follows: | |||||||||||||
Year ending December 31: | |||||||||||||
July - December 2014 | $ | 541,000 | |||||||||||
2015 | 135,000 | ||||||||||||
2016 | 135,000 | ||||||||||||
2017 | 135,000 | ||||||||||||
2018 | 135,000 | ||||||||||||
There have been no changes in the carrying amount of goodwill from January 1, 2014 to June 30, 2014. | |||||||||||||
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | ' | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' | |||||||||||||
NOTE 11 - STOCK-BASED COMPENSATION | ||||||||||||||
Stock Option Plans | ||||||||||||||
The Company adopted the 1995 Stock Option Plan, pursuant to which the Company had the right to grant options to purchase up to an aggregate of 1,250,000 shares of common stock. The Company also adopted the 1999 Stock Option Plan, pursuant to which the Company had the right to grant stock awards and options to purchase up to 2,813,000 shares of common stock. The Company also adopted the 1999 Director Option Plan, pursuant to which the Company had the right to grant options to purchase up to an aggregate of 600,000 shares of common stock. The 1995 Stock Option Plan and 1999 Stock and Director Option Plans expired and the Company cannot issue additional options under these plans. | ||||||||||||||
The Company adopted the 2007 Equity Compensation Plan, pursuant to which, as amended, the Company may grant options to purchase up to an aggregate of 2,500,000 shares of common stock. The Company also adopted the 2009 Non-Employee Director Equity Compensation Plan, pursuant to which, as amended (the “2009 Director Plan”), the Company may grant options to purchase up to an aggregate of 600,000 shares of common stock. The plans are 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 years), the exercise price of an option and the vesting provisions. | ||||||||||||||
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. As a result, the Company recorded stock-based compensation expense of $185,000 and $324,000, respectively, for the three- and six-month periods ended June 30, 2013 and $15,000 and $314,000, respectively, for the three- and six-month periods ended June 30, 2014, in connection with awards made under the stock option plans. | ||||||||||||||
On March 21, 2014, the Company and its former Chief Executive Officer (the “Former CEO”) entered into a Separation and General Release Agreement (the “Separation Agreement”). Under the terms of the Separation Agreement, the vesting of the Former CEO’s unvested stock options and restricted stock were accelerated and the term to exercise the stock options was extended to fifteen (15) months. Due to the modification of the terms of the stock option and restricted stock agreements, the Company recognized $327,000 of additional stock-based compensation expense in the first quarter of 2014 which is included in the stock option and restricted stock stock-based compensation expense. | ||||||||||||||
On April 4, 2014, each of Lawrence S. Burstein, Harold D. Copperman, Robert J. Farrell and Michael P. Monaco (collectively, the “Former Board Members”) informed the Company of their respective decisions not to stand for re-election to the Company’s board of directors (the “Board”) at the 2014 annual meeting of stockholders, which was held on June 20, 2014 (the “2014 Annual Meeting”).In connection with the Former Board Members’ departure, the vesting of certain options granted to the Former Board Members under the 2009 Director Plan was accelerated and the post termination exercise period was extended from a period of three (3) months to fifteen (15) months after the Former Board Members ceased to serve as members of the Board on June 20, 2014. Due to the modification of the terms of the stock options, the Company recognized $49,000 of additional stock-based compensation expense for the three-month period ended June 30, 2014 which is included in the stock option stock-based compensation expense. | ||||||||||||||
The following table summarizes the activity relating to the Company’s stock options for the six-month period ended June 30, 2014: | ||||||||||||||
Weighted- | ||||||||||||||
Weighted- | Average | |||||||||||||
Average | Remaining | Aggregate | ||||||||||||
Exercise | Contractual | Intrinsic | ||||||||||||
Options | Price | Term | Value | |||||||||||
Outstanding at beginning of year | 2,790,000 | $ | 7.25 | |||||||||||
Granted | 10,000 | 5.83 | ||||||||||||
Exercised | -15,000 | 3.87 | ||||||||||||
Expired | -373,000 | 6.7 | ||||||||||||
Forfeited | -149,000 | 5.24 | ||||||||||||
Outstanding at end of period | 2,263,000 | $ | 7.48 | 5 years | $ | 1,801,000 | ||||||||
Exercisable at end of period | 1,897,000 | $ | 7.87 | 4 years | $ | 1,704,000 | ||||||||
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: | ||||||||||||||
June 30, | ||||||||||||||
2013 | 2014 | |||||||||||||
Expected volatility | 44.7% - 54.8 | % | 45 | % | ||||||||||
Expected life of options | 4.0 - 5.0 years | 4.0 years | ||||||||||||
Risk free interest rate | 1 | % | 1.3 | % | ||||||||||
Dividend yield | 0 | % | 0 | % | ||||||||||
Weighted average fair value of options granted during the period | $ | 2.22 | $ | 2.13 | ||||||||||
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 fair value of options vested during the six-month periods ended June 30, 2013 and 2014 was $504,000 and $641,000, respectively. The total intrinsic value of options exercised during the six-month periods ended June 30, 2013 and 2014 was $11,000 and $30,000, respectively. | ||||||||||||||
As of June 30, 2014, there was approximately $539,000 of unrecognized compensation cost related to non-vested options granted under the Company’s stock option plans. That cost is expected to be recognized over a weighted-average period of 2.76 years. | ||||||||||||||
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. | ||||||||||||||
Restricted Stock | ||||||||||||||
In 2006, the Company began granting restricted stock to employees, whereby the employees are contractually restricted from transferring the shares until they are vested. The stock is unvested stock at the time of grant and, upon vesting, there are no contractual 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 all non-vested restricted stock for the six-month period ended June 30, 2014 is as follows: | ||||||||||||||
Weighted- | ||||||||||||||
Number of | Average | |||||||||||||
Non-vested | Grant Date | |||||||||||||
Shares | Fair Value | |||||||||||||
Restricted stock, non-vested, beginning of year | 200,000 | $ | 5.08 | |||||||||||
Granted | 109,000 | 5.83 | ||||||||||||
Vested | -95,000 | 5.03 | ||||||||||||
Forfeited | -72,000 | 4.8 | ||||||||||||
Restricted stock, non-vested, end of period | 142,000 | $ | 5.83 | |||||||||||
The Company recorded stock-based compensation expense of $163,000 and $273,000, respectively, for the three- and six-month periods ended June 30, 2013 and $5,000 and $314,000, respectively, for the three- and six-month periods ended June 30, 2014, in connection with restricted stock grants. As of June 30, 2014, there was $589,000 of total unrecognized compensation cost related to non-vested shares. That cost is expected to be recognized over a weighted-average period of 1.66 years. | ||||||||||||||
Performance Shares | ||||||||||||||
The Company grants performance shares to key employees pursuant to the 2007 Equity Compensation Plan, as amended. The issuance of the shares of the Company’s common stock underlying the performance shares is subject to the achievement of stock price targets of the Company’s common stock at the end of a three-year measurement period from the date of issuance, with the ability to achieve prorated performance shares during interim annual measurement periods. The annual measurement period is based on a trading day average of the Company’s stock after the announcement of annual results. If the stock price performance triggers are not met, the performance shares will not vest and will automatically be returned to the plan. If the stock price performance triggers are met, then the shares will be issued to the employees. Under the applicable accounting guidance, stock compensation expense at the fair value of the shares expected to vest is recorded even if the aforementioned stock price targets are not met. Stock-based compensation expense related to these performance shares for the three- and six-month periods ended June 30, 2013 and 2014 was insignificant. | ||||||||||||||
The following table summarizes the activity relating to the Company’s performance shares for the six-month period ended June 30, 2014: | ||||||||||||||
Non-vested | ||||||||||||||
Shares | ||||||||||||||
Performance shares, non-vested, beginning of year | 34,000 | |||||||||||||
Granted | - | |||||||||||||
Vested | - | |||||||||||||
Forfeited | -16,000 | |||||||||||||
Performance shares, non-vested, end of period | 18,000 | |||||||||||||
Warrants | ||||||||||||||
In connection with the Purchase Agreement with Avis Budget Group, Inc. (“Avis Budget Group”) entered into on August 22, 2011 (the “Effective Date”), the Company issued and sold to Avis Budget Group a warrant (the “Warrant”) to purchase up to an aggregate of 600,000 shares of the Company’s common stock (collectively, the “Warrant Shares”) at an exercise price of $ 10.00 per share of common stock. The Warrant is exercisable (i) with respect to 100,000 of the Warrant Shares, at any time after the Effective Date and on or before the fifth (5th) anniversary thereof, and (ii) with respect to 500,000 of the Warrant Shares, at any time on or after the date (if any) on which Avis Budget Car Rental, LLC, a Delaware limited liability company (“ABCR”) and the subsidiary of Avis Budget Group that is the counterparty under the Master Agreement (described in Note 2 to the Unaudited Condensed Consolidated Financial Statements), executes and delivers to the Company SOW#2 (as defined in the Master Agreement) and on or before the fifth (5th) anniversary of the Effective Date. | ||||||||||||||
The Warrant may be exercised by means of a “cashless exercise” solely in the event that on the later of (i) the one-year anniversary of the Effective Date and (ii) the date on which the Warrant is exercised by the holder, the Company is eligible to file a registration statement on Form S-3 to register the Warrant Shares for resale by the holder and a re-sale registration statement on Form S-3 registering the Warrant Shares for resale by the holder is not then declared effective by the Securities and Exchange Commission (the “SEC”) and available for use by the holder. The Company has agreed to file such a registration statement (on Form S-3 only, or a successor thereto) within 30 days of the holder’s request therefor, and to have such registration statement declared effective within 90 days of such request, if there is no review by the Staff of the SEC, and within 120 days, if there has been a review by the Staff of the SEC. As of June 30, 2014, the Company has not yet been requested to file such a registration statement. | ||||||||||||||
The exercise price of the Warrant and, in some cases, the number of shares of our common stock issuable upon exercise, are subject to adjustment in the case of stock splits, stock dividends, combinations of shares, similar recapitalization transactions and certain pro-rata distributions to holders of common stock. In the event of a fundamental transaction involving the Company, such as a merger, consolidation, sale of substantially all of the Company’s assets or similar reorganization or recapitalization, the holder will be entitled to receive, upon exercise of the Warrant, any securities or other consideration received by the holders of the Company’s common stock pursuant to such fundamental transaction. | ||||||||||||||
The Company is required to reserve a sufficient number of shares of common stock for the purpose enabling the Company to issue the Warrant Shares pursuant to any exercise of the Warrants. As of June 30, 2014, the Company has sufficient shares reserved. | ||||||||||||||
The fair value of the 100,000 Warrant Shares which vested on the Effective Date was recorded as reduction of product revenue during the third quarter of 2011. The remaining 500,000 Warrant Shares underlying the Warrant, which vest upon the execution of SOW#2, have not been valued at this time since the Company has not determined that it is probable that SOW#2 will be executed and that the Warrant will become exercisable for these remaining 500,000 Warrant Shares. Since there is no penalty for failure to execute SOW#2, there is no performance commitment date and, therefore, there is no measurement date for these 500,000 Warrant Shares underlying the Warrant until SOW#2 is executed. | ||||||||||||||
Shares withheld | ||||||||||||||
During the six-month periods ended June 30, 2013 and 2014, 38,000 and 24,000 shares, respectively of the Company’s common stock were withheld to satisfy minimum tax withholding obligations in connection with the vesting of restricted shares and to pay the exercise price of stock options in the aggregate amount of $202,000 and $137,000, respectively. | ||||||||||||||
NET_LOSS_PER_SHARE_OF_COMMON_S
NET LOSS PER SHARE OF COMMON STOCK | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||
Earnings Per Share [Text Block] | ' | |||||||||||||
NOTE 12 - NET LOSS PER SHARE OF COMMON STOCK | ||||||||||||||
Net loss per share for the three- and six-month periods ended June 30, 2013 and 2014 are as follows: | ||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||
June 30, | June 30, | |||||||||||||
2013 | 2014 | 2013 | 2014 | |||||||||||
Basic and diluted loss per share | ||||||||||||||
Net loss | $ | -1,707,000 | $ | -1,705,000 | $ | -4,329,000 | $ | -4,536,000 | ||||||
Weighted-average shares outstanding | 11,887,000 | 12,089,000 | 11,863,000 | 12,054,000 | ||||||||||
Basic and diluted net loss per share | $ | -0.14 | $ | -0.14 | $ | -0.36 | $ | -0.38 | ||||||
Basic loss per share is calculated by dividing net loss 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 shares awards. For the three- and six- month periods ended June 30, 2013, the basic and diluted weighted-average shares outstanding are the same, since the effect from the potential exercise of outstanding stock options, warrants and vesting of restricted stock and performance shares of 3,293,000 would have been anti-dilutive. For the three- and six- month periods ended June 30, 2014, the basic and diluted weighted-average shares outstanding are the same, since the effect from the potential exercise of outstanding stock options, warrants and vesting of restricted stock and performance shares of 2,523,000 would have been anti-dilutive. The warrants exercisable by Avis Budget Group upon ABCR’s execution and delivery of SOW#2 also have no impact on diluted loss per share since they are considered unissued as of June 30, 2014. | ||||||||||||||
ACCOUNTS_PAYABLE_AND_ACCRUED_E
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Accounts Payable and Accrued Liabilities, Current [Abstract] | ' | |||||||
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | ' | |||||||
NOTE 13- ACCOUNTS PAYABLE AND ACCRUED EXPENSES | ||||||||
Accounts payable and accrued expenses consist of the following: | ||||||||
December 31, | June 30, | |||||||
2013 | 2014 | |||||||
Accounts payable | $ | 5,303,000 | $ | 6,514,000 | ||||
Accrued warranty | 522,000 | 459,000 | ||||||
Accrued severance | 100,000 | 301,000 | ||||||
Accrued compensation | 172,000 | 632,000 | ||||||
Other current liabilities | 167,000 | 166,000 | ||||||
$ | 6,264,000 | $ | 8,072,000 | |||||
Included in accounts payable and accrued expenses at June 30, 2014 is accrued severance of $301,000, in the aggregate, to the Company’s Former Chief Executive Officer. The accrued severance is payable in equal monthly installments of approximately $20,000. | ||||||||
The Company’s products are warranted against defects in materials and workmanship for a period of 12 months 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. A provision for estimated future warranty costs is recorded for expected or historical warranty matters related to equipment shipped and is included in accounts payable and accrued expenses in the Condensed Consolidated Balance Sheets as of December 31, 2013 and June 30, 2014. | ||||||||
The following table summarizes warranty activity for the six-month periods ended June 30, 2013 and 2014: | ||||||||
Six Months Ended | ||||||||
June 30, | ||||||||
2013 | 2014 | |||||||
Accrued warranty reserve, beginning of period | $ | 520,000 | $ | 522,000 | ||||
Accrual for product warranties issued | 264,000 | 141,000 | ||||||
Product replacements and other warranty expenditures | -176,000 | -67,000 | ||||||
Expiration of warranties | -82,000 | -137,000 | ||||||
Accrued warranty reserve, end of period | $ | 526,000 | $ | 459,000 | ||||
CAPITAL_LEASE_OBLIGATION
CAPITAL LEASE OBLIGATION | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Leases, Capital [Abstract] | ' | ||||
Capital Leases in Financial Statements of Lessee Disclosure [Text Block] | ' | ||||
NOTE 14 - CAPITAL LEASE OBLIGATION | |||||
On September 30, 2013, the Company entered into an equipment lease for computer equipment. The lease is payable in 24 monthly installments of approximately $14,000, including interest at an annual rate of 12.82%. The term of the lease commenced in December 2013 and expires in December 2015. The Company has the option to purchase the equipment for $1.00 at the end of the term of the lease. | |||||
Annual minimum lease payments under capital lease obligations are as follows: | |||||
Year ending December 31: | |||||
July - December 2014 | $ | 87,000 | |||
2015 | 159,000 | ||||
246,000 | |||||
Less: amount representing interest | -22,000 | ||||
Total | $ | 224,000 | |||
INCOME_TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Tax Disclosure [Text Block] | ' |
NOTE 15 - INCOME TAXES | |
The Company accounts for income taxes under the asset and liability approach. Deferred tax assets and liabilities are recognized for the expected future tax consequences attributed to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to reverse. As of June 30, 2014, the Company had provided a valuation allowance to fully reserve its net operating loss carryforwards and other items giving rise to deferred tax assets, primarily as a result of anticipated net losses for income tax purposes. | |
As of December 31, 2013, approximately $10,338,000 of the Company’s New Jersey loss carryforwards (“NJ NOLs”) had been approved for future sale under a program of the New Jersey Economic Development Authority, which we refer to as the NJEDA. In order to realize these benefits, the Company must apply to the NJEDA each year and must meet various requirements for continuing eligibility. In addition, the program must continue to be funded by the State of New Jersey, and there are limitations based on the level of participation by other companies. Since specific sales transactions are subject to approval by the NJEDA, the Company recognizes the associated tax benefits in the financial statements as they are approved. As of December 31, 2013, the Company received approval for the sale of approximately $10,338,000 million of NJ NOLs, subject to a 7.4% seller’s allocation factor ($760,000, net) for approximately $63,000. As such, the Company reversed the valuation allowance related to these NJ NOLs in 2013. In January 2014, the Company received approximately $63,000 in cash proceeds. | |
FAIR_VALUE_OF_FINANCIAL_INSTRU
FAIR VALUE OF FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2014 | |
Fair Value Disclosures [Abstract] | ' |
Fair Value Disclosures [Text Block] | ' |
NOTE 16 - FAIR VALUE OF FINANCIAL INSTRUMENTS | |
Cash and cash equivalents and investments in securities are carried at fair value. Financing receivables and capital lease obligation are carried at cost, which is not materially different than fair value. Accounts receivable, accounts payable and other liabilities approximate their fair values due to the short period to maturity of these instruments. | |
CONCENTRATION_OF_CUSTOMERS
CONCENTRATION OF CUSTOMERS | 6 Months Ended |
Jun. 30, 2014 | |
Risks and Uncertainties [Abstract] | ' |
Concentration Risk Disclosure [Text Block] | ' |
NOTE 17 - CONCENTRATION OF CUSTOMERS | |
Two customers accounted for 18% and 16% of the Company’s revenue during the six-month period ended June 30, 2014. One customer accounted for 13% of the Company’s accounts receivable as of June 30, 2014. One customer accounted for 51% of notes and sales-type lease receivables as of June 30, 2014. | |
Two customers accounted for 20% and 10% of the Company’s revenue during the six-month period ended June 30, 2013. One customer accounted for 14% of the Company’s accounts receivable as of June 30, 2013. One customer accounted for 61% of notes and sales-type lease receivables as June 30, 2013. | |
STOCK_REPURCHASE_PROGRAM
STOCK REPURCHASE PROGRAM | 6 Months Ended |
Jun. 30, 2014 | |
Equity [Abstract] | ' |
Treasury Stock [Text Block] | ' |
NOTE 18 - STOCK REPURCHASE PROGRAM | |
On November 3, 2010, the Company’s Board of Directors authorized the repurchase of issued and outstanding shares of the Company’s common stock having an aggregate value of up to $ 3,000,000 pursuant to a share repurchase program. The repurchases under the share repurchase program are made from time to time in the open market or in privately negotiated transactions and are funded from the Company’s working capital. The amount and timing of such repurchases is dependent upon the price and availability of shares, general market conditions and the availability of cash, as determined at the discretion of the Company’s management. All shares of common stock repurchased under the Company’s share repurchase program are held as treasury stock. The Company did not purchase any shares of its common stock under the share repurchase program during the six-month period ended June 30, 2014. As of June 30, 2014, the Company has purchased a total of approximately 310,000 shares of its common stock in open market transactions under the share repurchase program for an aggregate purchase price of approximately $1,340,000, or an average cost of $4.33 per share. | |
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE LOSS | 6 Months Ended | ||||||||||
Jun. 30, 2014 | |||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ||||||||||
Comprehensive Income (Loss) Note [Text Block] | ' | ||||||||||
NOTE 19 - ACCUMULATED OTHER COMPREHENSIVE LOSS | |||||||||||
Comprehensive 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 Condensed Consolidated Balance Sheets. | |||||||||||
The accumulated balances for each classification of other comprehensive loss for the six-month period ended June 30, 2014 are as follows: | |||||||||||
Unrealized | Accumulated | ||||||||||
Foreign | gain (losses) | other | |||||||||
currency | on | comprehensive | |||||||||
items | investments | income (loss) | |||||||||
Balance at January 1, 2014 | $ | -97,000 | $ | -9,000 | $ | -106,000 | |||||
Net current period change | 76,000 | 10,000 | 86,000 | ||||||||
Balance at June 30, 2014 | $ | -21,000 | $ | 1,000 | $ | -20,000 | |||||
The accumulated balances for each classification of other comprehensive loss for the six-month period ended June 30, 2013 are as follows: | |||||||||||
Unrealized | Accumulated | ||||||||||
Foreign | gain (losses) | other | |||||||||
currency | on | comprehensive | |||||||||
items | investments | income | |||||||||
Balance at January 1, 2013 | $ | -20,000 | $ | 73,000 | $ | 53,000 | |||||
Net current period change | -86,000 | -98,000 | -184,000 | ||||||||
Balance at June 30, 2013 | $ | -106,000 | $ | -25,000 | $ | -131,000 | |||||
Income and expense accounts of foreign operations are translated at actual or weighted-average exchange rates during the period. Assets and liabilities of foreign operations that operate in a local currency environment are translated to U.S. dollars at the exchange rates in effect at the balance sheet date. Translation gains or losses are reported as components of accumulated other comprehensive income/loss in consolidated stockholders’ equity. Net translation gains or losses resulting from the translation of foreign financial statements and the effect of exchange rate changes on intercompany transactions of a long-term investment nature with IDS GmbH resulted in translation (losses) gains of $(86,000) and $76,000 for the six-month periods ended June 30, 2013 and 2014, respectively, which is included in comprehensive loss in the Consolidated Statement of Changes in Stockholders’ Equity. | |||||||||||
WHOLLY_OWNED_FOREIGN_SUBSIDIAR
WHOLLY OWNED FOREIGN SUBSIDIARIES | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Wholly Owned Foreign Subsidiaries [Abstract] | ' | |||||||||||||
Wholly Owned Foreign Subsidiaries [Text Block] | ' | |||||||||||||
NOTE 20 - WHOLLY OWNED FOREIGN SUBSIDIARIES | ||||||||||||||
The financial statements of the Company’s wholly owned German subsidiary, I.D. Systems GmbH (“IDS GmbH”), and United Kingdom subsidiary, I.D. Systems (UK) Ltd (“IDS Ltd”), are consolidated with the financial statements of I.D. Systems, Inc. | ||||||||||||||
The net revenue and net loss for IDS GmbH included in the Condensed Consolidated Statement of Operations are as follows: | ||||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||
June 30, | June 30, | |||||||||||||
2013 | 2014 | 2013 | 2014 | |||||||||||
Net revenue | $ | 552,000 | $ | 1,155,000 | $ | 719,000 | $ | 1,768,000 | ||||||
Net (loss) income | -23,000 | 226,000 | -146,000 | 289,000 | ||||||||||
Total assets of IDS GmbH were $1,701,000 and $2,884,000 as of December 31, 2013 and June 30, 2014, respectively. IDS GmbH operates in a local currency environment using the Euro as its functional currency. | ||||||||||||||
The net revenue and net loss for IDS Ltd included in the Condensed Consolidated Statement of Operations are as follows: | ||||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||
June 30, | June 30, | |||||||||||||
2013 | 2014 | 2013 | 2014 | |||||||||||
Net revenue | $ | 323,000 | $ | 72,000 | $ | 393,000 | $ | 172,000 | ||||||
Net income (loss) | 1,000 | -84,000 | -171,000 | -171,000 | ||||||||||
Total assets of IDS Ltd were $2,200,000 and $2,108,000 as of December 31, 2013 and June 30, 2014, respectively. IDS Ltd operates in a local currency environment using the British Pound as its functional currency. | ||||||||||||||
Gains and losses resulting from foreign currency transactions are included in determining net income or loss. Foreign currency transactions gains (losses) for the three- and six-month periods ended June 30, 2013 of $-0- and $(29,000), respectively, and for the three- and six-month periods ended June 30, 2014 of $29,000 and $32,000, respectively, are included in selling, general and administrative expenses in the Condensed Consolidated Statement of Operations. | ||||||||||||||
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies Disclosure [Text Block] | ' |
NOTE 21 - COMMITMENTS AND CONTINGENCIES | |
Except for normal operating leases, the Company is not currently subject to any material commitments. | |
Contingencies | |
The Company is not currently subject to any material commitments or contingencies and legal proceedings, nor, to management’s knowledge, is any material legal proceeding threatened against the Company. | |
Severance agreements | |
The Company entered into severance agreements with three of its executive officers. The severance agreements, each of which is substantially identical in form, provide each executive with certain severance and change in control benefits upon the occurrence of a “Trigger Event,” as defined in the severance agreements. As a condition to the Company’s obligations under the severance agreements, each executive has executed and delivered to the Company a restrictive covenants agreement. | |
Under the terms of the severance agreements, in general, each executive is entitled to the following: (i) a cash payment at the rate of the executive’s annual base salary as in effect immediately prior to the Trigger Event for a period of 12 or 15 months, depending on the executive, (ii) continued healthcare coverage during the severance period, (iii) partial accelerated vesting of the executive’s previously granted stock options and restricted stock awards, and (iv) as applicable, an award of “Performance Shares” under the Restricted Stock Unit Award Agreement previously entered into between the Company and the executive. | |
On March 21, 2014, the Company and its former Chief Executive Officer (the “Former CEO”) entered into a Separation and General Release Agreement (the “Separation Agreement”). Under the terms of the Separation Agreement, the Company recognized severance costs of $523,000 in the first quarter of 2014 which are included in selling, general and administrative expenses. In addition, the vesting of the Former CEO’s unvested stock options and restricted stock were accelerated and the term to exercise the stock options was extended to fifteen (15) months. Due to the modification of the terms of the stock option and restricted stock agreements, the Company recognized $327,000 of additional stock-based compensation expense in the first quarter of 2014. | |
RECENT_ACCOUNTING_PRONOUNCEMEN
RECENT ACCOUNTING PRONOUNCEMENTS | 6 Months Ended |
Jun. 30, 2014 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | ' |
NOTE 22 - RECENT ACCOUNTING PRONOUNCEMENTS | |
In April 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-08, "Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity." This ASU relates to discontinued operations reporting for disposals of components of an entity that represent strategic shifts that have, or will have, a major effect on an entity's operations and financial results. The standard expands the disclosures for discontinued operations and requires new disclosures related to individually material disposals that do not meet the definition of a discontinued operation. The provisions of this ASU are effective for interim and annual periods beginning after December 15, 2014. The Company’s adoption of this guidance is not expected to have a material impact on the Company’s financial statements or disclosures. | |
In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers" (Topic 606). This ASU is intended to clarify the principles for recognizing revenue by removing inconsistencies and weaknesses in revenue requirements; providing a more robust framework for addressing revenue issues; improving comparability of revenue recognition practices across entities, industries, jurisdictions and capital markets; and providing more useful information to users of financial statements through improved revenue disclosure requirements. The new standard is required to be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying it recognized at the date of initial application. The provisions of this ASU are effective for interim and annual periods beginning after December 15, 2016. Early application is not permitted. The Company is currently evaluating the impact of this ASU. | |
In June 2014, the FASB issued ASU No. 2014-12, "Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period." This ASU requires a reporting entity to treat a performance target that affects vesting and that could be achieved after the requisite service period as a performance condition, and apply existing guidance under the Stock Compensation Topic of the ASC as it relates to awards with performance conditions that affect vesting to account for such awards. The provisions of this ASU are effective for interim and annual periods beginning after December 15, 2015. The Company is currently evaluating the impact of this ASU. | |
In July 2013, the FASB issued ASU 2013-11, “Presentation of Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists, an amendment to FASB Accounting Standards Codification Topic 740, Income Taxes" ("ASU 2013-11"). ASU 2013-11 clarifies that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward if such settlement is required or expected in the event the uncertain tax position is disallowed. ASU 2013-11 is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013. Retrospective application is permitted. The adoption of this guidance did not have a material impact on the Company’s financial results. | |
In March 2013, the FASB issued ASU No. 2013-05, “Foreign Currency Matters (Topic 830): Parent's Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity” (“ASU 2013-05”). ASU 2013-05 provides clarification regarding whether Subtopic 810-10, Consolidation - Overall, or Subtopic 830-30, Foreign Currency Matters - Translation of Financial Statements, applies to the release of cumulative translation adjustments into net income when a reporting entity either sells a part or all of its investment in a foreign entity or ceases to have a controlling financial interest in a subsidiary or group of assets that constitute a business within a foreign entity. ASU 2013-05 is effective prospectively for reporting periods beginning after December 15, 2013, with early adoption permitted. The adoption of this guidance did not have a material impact on the Company’s financial results. | |
INVESTMENTS_Tables
INVESTMENTS (Tables) | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||
Schedule of Fair Value of Available for Sale Securities Excluding Mutual Funds [Table Text Block] | ' | |||||||||||||
The following table summarizes the estimated fair value of investment securities designated as available for sale, excluding investment in mutual funds of $1,414,000, classified by the contractual maturity date of the security as of June 30, 2014: | ||||||||||||||
Fair Value | ||||||||||||||
Due within one year | $ | 1,436,000 | ||||||||||||
Due one year through three years | 4,366,000 | |||||||||||||
Due after three years | - | |||||||||||||
$ | 5,802,000 | |||||||||||||
Schedule of Available-for-sale Securities Reconciliation [Table Text Block] | ' | |||||||||||||
The cost, gross unrealized gains (losses) and fair value of available for sale securities by major security types as of December 31, 2013 and June 30, 2014 are as follows: | ||||||||||||||
Unrealized | Unrealized | Fair | ||||||||||||
June 30, 2014 | Cost | Gain | Loss | Value | ||||||||||
Investments - short term | ||||||||||||||
Available for sale | ||||||||||||||
Mutual funds | $ | 1,414,000 | - | - | $ | 1,414,000 | ||||||||
Corporate bonds and commercial paper | 1,074,000 | 4,000 | -7,000 | 1,071,000 | ||||||||||
Government agency bonds | 365,000 | - | - | 365,000 | ||||||||||
Total investments - short term | 2,853,000 | 4,000 | -7,000 | 2,850,000 | ||||||||||
Marketable securities - long term | ||||||||||||||
Available for sale | ||||||||||||||
U.S. Treasury Notes | 2,576,000 | 1,000 | - | 2,577,000 | ||||||||||
Government agency bonds | 661,000 | - | -1,000 | 660,000 | ||||||||||
Corporate bonds and commercial paper | 1,125,000 | 5,000 | -1,000 | 1,129,000 | ||||||||||
Total investments - long term | 4,362,000 | 6,000 | -2,000 | 4,366,000 | ||||||||||
Total investments | $ | 7,215,000 | $ | 10,000 | $ | -9,000 | $ | 7,216,000 | ||||||
Unrealized | Unrealized | Fair | ||||||||||||
December 31, 2013 | Cost | Gain | Loss | Value | ||||||||||
Investments - short term | ||||||||||||||
Available for sale | ||||||||||||||
Government agency bonds | $ | 419,000 | $ | - | $ | - | $ | 419,000 | ||||||
Mutual funds | 1,386,000 | - | -4,000 | 1,382,000 | ||||||||||
Corporate bonds and commercial paper | 590,000 | 1,000 | -1,000 | 590,000 | ||||||||||
U.S. Treasury Notes | 1,697,000 | 2,000 | - | 1,699,000 | ||||||||||
Total available for sale - short term | 4,092,000 | 3,000 | -5,000 | 4,090,000 | ||||||||||
Investments - long term | ||||||||||||||
Available for sale | ||||||||||||||
U.S. Treasury Notes | 930,000 | - | -4,000 | 926,000 | ||||||||||
Government agency bonds | 612,000 | - | -7,000 | 605,000 | ||||||||||
Corporate bonds and commercial paper | 1,565,000 | 5,000 | -1,000 | 1,569,000 | ||||||||||
Total available for sale - long term | 3,107,000 | 5,000 | -12,000 | 3,100,000 | ||||||||||
Total investments | $ | 7,199,000 | $ | 8,000 | $ | -17,000 | $ | 7,190,000 | ||||||
REVENUE_RECOGNITION_Tables
REVENUE RECOGNITION (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Deferred Revenue Disclosure [Abstract] | ' | |||||||
Deferred Revenue, by Arrangement, Disclosure [Table Text Block] | ' | |||||||
Deferred revenue consists of the following: | ||||||||
December 31, | June 30, | |||||||
2013 | 2014 | |||||||
Deferred activation fees | $ | 496,000 | $ | 513,000 | ||||
Deferred industrial equipment installation revenue | 258,000 | 196,000 | ||||||
Deferred maintenance revenue | 1,959,000 | 3,110,000 | ||||||
Deferred remote transportation asset management product revenue | 8,466,000 | 8,489,000 | ||||||
11,179,000 | 12,308,000 | |||||||
Less: Current portion | 4,641,000 | 5,253,000 | ||||||
Deferred revenue - less current portion | $ | 6,538,000 | $ | 7,055,000 | ||||
FINANCING_RECEIVABLES_Tables
FINANCING RECEIVABLES (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Receivables [Abstract] | ' | |||||||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | ' | |||||||
Financing receivables include notes and sales-type lease receivables from the sale of the Company’s products and services. Financing receivables consist of the following: | ||||||||
December 31, | June 30, | |||||||
2013 | 2014 | |||||||
Notes receivable | $ | 53,000 | $ | 40,000 | ||||
Sales-type lease receivable | 14,253,000 | 13,069,000 | ||||||
Less: Allowance for credit losses | - | - | ||||||
14,306,000 | 13,109,000 | |||||||
Less: Current portion | ||||||||
Notes receivable | 25,000 | 26,000 | ||||||
Sales-type lease receivable | 4,026,000 | 4,134,000 | ||||||
4,051,000 | 4,160,000 | |||||||
Financing receivables - less current portion | $ | 10,255,000 | $ | 8,949,000 | ||||
Schedule Of Capital Leases, Future Minimum Payments Receivable, Fiscal Year Maturity [Table Text Block] | ' | |||||||
Scheduled maturities of sales-type lease minimum lease payments outstanding as of June 30, 2014 are as follows: | ||||||||
Year ending December 31: | ||||||||
July - December 2014 | $ | 2,110,000 | ||||||
2015 | 3,980,000 | |||||||
2016 | 3,773,000 | |||||||
2017 | 2,484,000 | |||||||
2018 | 662,000 | |||||||
Thereafter | 60,000 | |||||||
13,069,000 | ||||||||
Less: Current portion | 4,134,000 | |||||||
Sales-type lease receivable - less current portion | $ | 8,935,000 | ||||||
INVENTORY_Tables
INVENTORY (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Schedule of Inventory, Current [Table Text Block] | ' | |||||||
Inventories consist of the following: | ||||||||
December 31, | June 30, | |||||||
2013 | 2014 | |||||||
Components | $ | 2,968,000 | $ | 2,661,000 | ||||
Finished goods | 2,188,000 | 2,071,000 | ||||||
$ | 5,156,000 | $ | 4,732,000 | |||||
FIXED_ASSETS_Tables
FIXED ASSETS (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property, Plant and Equipment [Table Text Block] | ' | |||||||
Fixed assets are stated at cost, less accumulated depreciation and amortization, and are summarized as follows: | ||||||||
December 31, | June 30, | |||||||
2013 | 2014 | |||||||
Equipment | $ | 1,375,000 | $ | 1,456,000 | ||||
Computer software | 3,319,000 | 3,407,000 | ||||||
Computer hardware | 2,565,000 | 2,680,000 | ||||||
Furniture and fixtures | 371,000 | 371,000 | ||||||
Automobiles | 47,000 | 47,000 | ||||||
Leasehold improvements | 181,000 | 181,000 | ||||||
7,858,000 | 8,142,000 | |||||||
Accumulated depreciation and amortization | -5,619,000 | -6,187,000 | ||||||
$ | 2,239,000 | $ | 1,955,000 | |||||
INTANGIBLE_ASSETS_AND_GOODWILL1
INTANGIBLE ASSETS AND GOODWILL (Tables) | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||
Schedule of Intangible Assets and Goodwill [Table Text Block] | ' | ||||||||||||
The following table summarizes identifiable intangible assets of the Company, which include identifiable intangible assets from the acquisition of IDS Ltd., PowerKey (the industrial vehicle monitoring products division of International Electronics, Inc. acquired by the Company in 2008) and AI as of December 31, 2013 and June 30, 2014: | |||||||||||||
June 30, 2014 | Useful | Gross | Accumulated | Net | |||||||||
Lives | Carrying | Amortization | Carrying | ||||||||||
(In Years) | Amount | Amount | |||||||||||
Amortized: | |||||||||||||
Patents | 11 | $ | 1,489,000 | $ | -609,000 | $ | 880,000 | ||||||
Tradename | 5 | 200,000 | -180,000 | 20,000 | |||||||||
Non-competition agreement | 3 | 234,000 | -234,000 | - | |||||||||
Technology | 5 | 50,000 | -47,000 | 3,000 | |||||||||
Workforce | 5 | 33,000 | -31,000 | 2,000 | |||||||||
Customer relationships | 5 | 4,499,000 | -4,051,000 | 448,000 | |||||||||
6,505,000 | -5,152,000 | 1,353,000 | |||||||||||
Unamortized: | |||||||||||||
Customer list | 104,000 | - | 104,000 | ||||||||||
Trademark and Tradename | 61,000 | - | 61,000 | ||||||||||
165,000 | - | 165,000 | |||||||||||
Total | $ | 6,670,000 | $ | -5,152,000 | $ | 1,518,000 | |||||||
Useful | Gross | Net | |||||||||||
Lives | Carrying | Accumulated | Carrying | ||||||||||
December 31, 2013 | (In Years) | Amount | Amortization | Amount | |||||||||
Amortized: | |||||||||||||
Patents | 11 | $ | 1,489,000 | $ | -541,000 | $ | 948,000 | ||||||
Tradename | 5 | 200,000 | -160,000 | 40,000 | |||||||||
Non-competition agreement | 3 | 234,000 | -234,000 | - | |||||||||
Technology | 5 | 50,000 | -42,000 | 8,000 | |||||||||
Workforce | 5 | 33,000 | -28,000 | 5,000 | |||||||||
Customer relationships | 5 | 4,499,000 | -3,601,000 | 898,000 | |||||||||
6,505,000 | -4,606,000 | 1,899,000 | |||||||||||
Unamortized: | |||||||||||||
Customer list | 104,000 | - | 104,000 | ||||||||||
Trademark and Tradename | 61,000 | - | 61,000 | ||||||||||
165,000 | - | 165,000 | |||||||||||
Total | $ | 6,670,000 | $ | -4,606,000 | $ | 2,064,000 | |||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | ' | ||||||||||||
Amortization expense for the three- and six-month periods ended June 30, 2013 was $253,000 and $546,000, respectively, and for the three- and six-month periods ended June 30, 2014 was $273,000 and $546,000, respectively. Estimated future amortization expense for each of the five succeeding fiscal years for these intangible assets is as follows: | |||||||||||||
Year ending December 31: | |||||||||||||
July - December 2014 | $ | 541,000 | |||||||||||
2015 | 135,000 | ||||||||||||
2016 | 135,000 | ||||||||||||
2017 | 135,000 | ||||||||||||
2018 | 135,000 | ||||||||||||
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION (Tables) | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | ' | |||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | |||||||||||||
The following table summarizes the activity relating to the Company’s stock options for the six-month period ended June 30, 2014: | ||||||||||||||
Weighted- | ||||||||||||||
Weighted- | Average | |||||||||||||
Average | Remaining | Aggregate | ||||||||||||
Exercise | Contractual | Intrinsic | ||||||||||||
Options | Price | Term | Value | |||||||||||
Outstanding at beginning of year | 2,790,000 | $ | 7.25 | |||||||||||
Granted | 10,000 | 5.83 | ||||||||||||
Exercised | -15,000 | 3.87 | ||||||||||||
Expired | -373,000 | 6.7 | ||||||||||||
Forfeited | -149,000 | 5.24 | ||||||||||||
Outstanding at end of period | 2,263,000 | $ | 7.48 | 5 years | $ | 1,801,000 | ||||||||
Exercisable at end of period | 1,897,000 | $ | 7.87 | 4 years | $ | 1,704,000 | ||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | ' | |||||||||||||
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: | ||||||||||||||
June 30, | ||||||||||||||
2013 | 2014 | |||||||||||||
Expected volatility | 44.7% - 54.8 | % | 45 | % | ||||||||||
Expected life of options | 4.0 - 5.0 years | 4.0 years | ||||||||||||
Risk free interest rate | 1 | % | 1.3 | % | ||||||||||
Dividend yield | 0 | % | 0 | % | ||||||||||
Weighted average fair value of options granted during the period | $ | 2.22 | $ | 2.13 | ||||||||||
Schedule of Nonvested Share Activity [Table Text Block] | ' | |||||||||||||
A summary of all non-vested restricted stock for the six-month period ended June 30, 2014 is as follows: | ||||||||||||||
Weighted- | ||||||||||||||
Number of | Average | |||||||||||||
Non-vested | Grant Date | |||||||||||||
Shares | Fair Value | |||||||||||||
Restricted stock, non-vested, beginning of year | 200,000 | $ | 5.08 | |||||||||||
Granted | 109,000 | 5.83 | ||||||||||||
Vested | -95,000 | 5.03 | ||||||||||||
Forfeited | -72,000 | 4.8 | ||||||||||||
Restricted stock, non-vested, end of period | 142,000 | $ | 5.83 | |||||||||||
Schedule of Nonvested Performance-based Units Activity [Table Text Block] | ' | |||||||||||||
The following table summarizes the activity relating to the Company’s performance shares for the six-month period ended June 30, 2014: | ||||||||||||||
Non-vested | ||||||||||||||
Shares | ||||||||||||||
Performance shares, non-vested, beginning of year | 34,000 | |||||||||||||
Granted | - | |||||||||||||
Vested | - | |||||||||||||
Forfeited | -16,000 | |||||||||||||
Performance shares, non-vested, end of period | 18,000 | |||||||||||||
NET_LOSS_PER_SHARE_OF_COMMON_S1
NET LOSS PER SHARE OF COMMON STOCK (Tables) | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | |||||||||||||
Net loss per share for the three- and six-month periods ended June 30, 2013 and 2014 are as follows: | ||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||
June 30, | June 30, | |||||||||||||
2013 | 2014 | 2013 | 2014 | |||||||||||
Basic and diluted loss per share | ||||||||||||||
Net loss | $ | -1,707,000 | $ | -1,705,000 | $ | -4,329,000 | $ | -4,536,000 | ||||||
Weighted-average shares outstanding | 11,887,000 | 12,089,000 | 11,863,000 | 12,054,000 | ||||||||||
Basic and diluted net loss per share | $ | -0.14 | $ | -0.14 | $ | -0.36 | $ | -0.38 | ||||||
ACCOUNTS_PAYABLE_AND_ACCRUED_E1
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Accounts Payable and Accrued Liabilities, Current [Abstract] | ' | |||||||
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | ' | |||||||
Accounts payable and accrued expenses consist of the following: | ||||||||
December 31, | June 30, | |||||||
2013 | 2014 | |||||||
Accounts payable | $ | 5,303,000 | $ | 6,514,000 | ||||
Accrued warranty | 522,000 | 459,000 | ||||||
Accrued severance | 100,000 | 301,000 | ||||||
Accrued compensation | 172,000 | 632,000 | ||||||
Other current liabilities | 167,000 | 166,000 | ||||||
$ | 6,264,000 | $ | 8,072,000 | |||||
Schedule of Product Warranty Liability [Table Text Block] | ' | |||||||
The following table summarizes warranty activity for the six-month periods ended June 30, 2013 and 2014: | ||||||||
Six Months Ended | ||||||||
June 30, | ||||||||
2013 | 2014 | |||||||
Accrued warranty reserve, beginning of period | $ | 520,000 | $ | 522,000 | ||||
Accrual for product warranties issued | 264,000 | 141,000 | ||||||
Product replacements and other warranty expenditures | -176,000 | -67,000 | ||||||
Expiration of warranties | -82,000 | -137,000 | ||||||
Accrued warranty reserve, end of period | $ | 526,000 | $ | 459,000 | ||||
CAPITAL_LEASE_OBLIGATION_Table
CAPITAL LEASE OBLIGATION (Tables) | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Leases, Capital [Abstract] | ' | ||||
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block] | ' | ||||
Annual minimum lease payments under capital lease obligations are as follows: | |||||
Year ending December 31: | |||||
July - December 2014 | $ | 87,000 | |||
2015 | 159,000 | ||||
246,000 | |||||
Less: amount representing interest | -22,000 | ||||
Total | $ | 224,000 | |||
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 6 Months Ended | ||||||||||
Jun. 30, 2014 | |||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | ' | ||||||||||
The accumulated balances for each classification of other comprehensive loss for the six-month period ended June 30, 2014 are as follows: | |||||||||||
Unrealized | Accumulated | ||||||||||
Foreign | gain (losses) | other | |||||||||
currency | on | comprehensive | |||||||||
items | investments | income (loss) | |||||||||
Balance at January 1, 2014 | $ | -97,000 | $ | -9,000 | $ | -106,000 | |||||
Net current period change | 76,000 | 10,000 | 86,000 | ||||||||
Balance at June 30, 2014 | $ | -21,000 | $ | 1,000 | $ | -20,000 | |||||
The accumulated balances for each classification of other comprehensive loss for the six-month period ended June 30, 2013 are as follows: | |||||||||||
Unrealized | Accumulated | ||||||||||
Foreign | gain (losses) | other | |||||||||
currency | on | comprehensive | |||||||||
items | investments | income | |||||||||
Balance at January 1, 2013 | $ | -20,000 | $ | 73,000 | $ | 53,000 | |||||
Net current period change | -86,000 | -98,000 | -184,000 | ||||||||
Balance at June 30, 2013 | $ | -106,000 | $ | -25,000 | $ | -131,000 | |||||
WHOLLY_OWNED_FOREIGN_SUBSIDIAR1
WHOLLY OWNED FOREIGN SUBSIDIARIES (Tables) | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Wholly Owned Foreign Subsidiaries [Abstract] | ' | |||||||||||||
Financial Statements of Foreign Subsidiary One [Table Text Block] | ' | |||||||||||||
The net revenue and net loss for IDS GmbH included in the Condensed Consolidated Statement of Operations are as follows: | ||||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||
June 30, | June 30, | |||||||||||||
2013 | 2014 | 2013 | 2014 | |||||||||||
Net revenue | $ | 552,000 | $ | 1,155,000 | $ | 719,000 | $ | 1,768,000 | ||||||
Net (loss) income | -23,000 | 226,000 | -146,000 | 289,000 | ||||||||||
Financial Statements of Foreign Subsidiary Two [Table Text Block] | ' | |||||||||||||
The net revenue and net loss for IDS Ltd included in the Condensed Consolidated Statement of Operations are as follows: | ||||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||
June 30, | June 30, | |||||||||||||
2013 | 2014 | 2013 | 2014 | |||||||||||
Net revenue | $ | 323,000 | $ | 72,000 | $ | 393,000 | $ | 172,000 | ||||||
Net income (loss) | 1,000 | -84,000 | -171,000 | -171,000 | ||||||||||
SIGNIFICANT_TRANSACTION_AVIS_B1
SIGNIFICANT TRANSACTION - AVIS BUDGET GROUP INC. (Details Textual) (USD $) | 3 Months Ended | 6 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | ||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Aug. 22, 2011 | Dec. 31, 2011 | Sep. 30, 2011 | Dec. 31, 2013 | Aug. 22, 2011 | Dec. 31, 2011 | Sep. 30, 2011 | |
Pilot Agreement With Avis Budget Car Rental [Member] | Pilot Agreement With Avis Budget Car Rental [Member] | Pilot Agreement With Avis Budget Car Rental [Member] | Pilot Agreement With Avis Budget Car Rental [Member] | Avis Budget Group, Inc. [Member] | Avis Budget Group, Inc. [Member] | Avis Budget Group, Inc. [Member] | |||||
Significant Transactions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Value, Treasury Stock Reissued | ' | ' | ' | ' | ' | ' | ' | ' | $4,604,500 | ' | ' |
Stock Issued During Period Price Per Share | ' | ' | ' | ' | ' | ' | ' | ' | $4.60 | ' | ' |
Stock Issued During Period, Shares, Treasury Stock Reissued | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' |
Class Of Warrant Or Right, Number Of Securities Called By Warrants Or Rights | ' | ' | ' | ' | ' | ' | ' | ' | 600,000 | ' | ' |
Warrants Exercisable Description | ' | ' | ' | ' | ' | ' | ' | ' | 'The Warrant has an exercise price of $10.00 per share of common stock. The Warrant is exercisable (i) with respect to 100,000 of the Warrant Shares, at any time after the Effective Date and on or before the fifth (5th) anniversary thereof, and (ii) with respect to 500,000 of the Warrant Shares, at any time on or after the date (if any) on which Avis Budget Car Rental, LLC (ABCR), a subsidiary of Avis Budget Group and the Avis entity that is the counterparty under the Master Agreement described below, executes and delivers to the Company SOW#2 (which is described below), and on or before the fifth (5th) anniversary of the Effective Date. | ' | ' |
Issuance of warrants to customer | ' | ' | ' | ' | ' | ' | 137,000 | ' | ' | ' | ' |
Maximum Amount Of System and Maintenance Services Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 14,000,000 | ' | ' |
Units Covered Under System and Maintenance Services | ' | ' | ' | ' | ' | ' | ' | ' | 25,000 | ' | ' |
Units Delivered Under System and Maintenance Services | ' | ' | ' | ' | 30,000 | ' | ' | ' | ' | 5,000 | 20,000 |
Vehicles In Fleet Management System | ' | ' | ' | ' | ' | 5,000 | ' | ' | ' | ' | ' |
Invoices Issuable Under Management Agreement On Monthly Basis Number Of Invoice | ' | ' | ' | ' | ' | ' | ' | 60 | 60 | ' | ' |
Invoices Issuable Under Management Agreement On Monthly Basis Invoice Value | ' | ' | ' | ' | ' | ' | ' | ' | 286,100 | ' | ' |
Number Of Warrants Issued | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 | ' | ' |
Master Agreement Description | ' | ' | ' | ' | ' | ' | ' | ' | 'ABCR hosts the System. As part of the Master Agreement, the Company also will provide ABCR with services for ongoing maintenance and support of the System (the Maintenance Services) for a period of 60 months from installation of the equipment.ABCR has the option to renew the period for twelve (12) months upon its expiry, and then after such 12-month period, the period can continue on a month-to-month basis (during which ABCR can terminate the period) for up to 48 additional months. | ' | ' |
Revenue, Net | $11,413,000 | $9,370,000 | $21,149,000 | $17,384,000 | ' | ' | ' | ' | ' | $1,700,000 | $6,900,000 |
INVESTMENTS_Details
INVESTMENTS (Details) (USD $) | Jun. 30, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ' |
Due within one year | $1,436,000 |
Due one year through three years | 4,366,000 |
Due after three years | 0 |
Long term | $5,802,000 |
INVESTMENTS_Details_1
INVESTMENTS (Details 1) (USD $) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2014 | Dec. 31, 2013 | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost | $7,215,000 | $7,199,000 |
Unrealized Gain | 10,000 | 8,000 |
Unrealized Loss | -9,000 | -17,000 |
Fair Value | 7,216,000 | 7,190,000 |
Short-term Investments [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost | 2,853,000 | 4,092,000 |
Unrealized Gain | 4,000 | 3,000 |
Unrealized Loss | -7,000 | -5,000 |
Fair Value | 2,850,000 | 4,090,000 |
Long-term Investments [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost | 4,362,000 | 3,107,000 |
Unrealized Gain | 6,000 | 5,000 |
Unrealized Loss | -2,000 | -12,000 |
Fair Value | 4,366,000 | 3,100,000 |
U.S. Treasury Notes [Member] | Short-term Investments [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost | ' | 1,697,000 |
Unrealized Gain | ' | 2,000 |
Unrealized Loss | ' | 0 |
Fair Value | ' | 1,699,000 |
U.S. Treasury Notes [Member] | Long-term Investments [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost | 2,576,000 | 930,000 |
Unrealized Gain | 1,000 | 0 |
Unrealized Loss | 0 | -4,000 |
Fair Value | 2,577,000 | 926,000 |
Mutual funds [Member] | Short-term Investments [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost | 1,414,000 | 1,386,000 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | 0 | -4,000 |
Fair Value | 1,414,000 | 1,382,000 |
Corporate bonds and commercial paper [Member] | Short-term Investments [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost | 1,074,000 | 590,000 |
Unrealized Gain | 4,000 | 1,000 |
Unrealized Loss | -7,000 | -1,000 |
Fair Value | 1,071,000 | 590,000 |
Corporate bonds and commercial paper [Member] | Long-term Investments [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost | 1,125,000 | 1,565,000 |
Unrealized Gain | 5,000 | 5,000 |
Unrealized Loss | -1,000 | -1,000 |
Fair Value | 1,129,000 | 1,569,000 |
Government agency bonds [Member] | Short-term Investments [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost | 365,000 | 419,000 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | 0 | 0 |
Fair Value | 365,000 | 419,000 |
Government agency bonds [Member] | Long-term Investments [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost | 661,000 | 612,000 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | -1,000 | -7,000 |
Fair Value | $660,000 | $605,000 |
INVESTMENTS_Details_Textual
INVESTMENTS (Details Textual) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' |
Unrealized (loss) gain on investments | $9,000 | ($65,000) | $10,000 | ($74,000) |
REVENUE_RECOGNITION_Details
REVENUE RECOGNITION (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | |
Deferred Revenue Arrangement [Line Items] | ' | ' | |
Deferred revenue | $12,308,000 | $11,179,000 | |
Less: Current portion | 5,253,000 | 4,641,000 | [1] |
Deferred revenue - less current portion | 7,055,000 | 6,538,000 | [1] |
Activation Fees [Member] | ' | ' | |
Deferred Revenue Arrangement [Line Items] | ' | ' | |
Deferred revenue | 513,000 | 496,000 | |
Industrial Equipment Installation Revenue [Member] | ' | ' | |
Deferred Revenue Arrangement [Line Items] | ' | ' | |
Deferred revenue | 196,000 | 258,000 | |
Maintenance Revenue [Member] | ' | ' | |
Deferred Revenue Arrangement [Line Items] | ' | ' | |
Deferred revenue | 3,110,000 | 1,959,000 | |
Remote Asset Management Product Revenue [Member] | ' | ' | |
Deferred Revenue Arrangement [Line Items] | ' | ' | |
Deferred revenue | $8,489,000 | $8,466,000 | |
[1] | Derived from audited balance sheet as of December 31, 2013 |
REVENUE_RECOGNITION_Details_Te
REVENUE RECOGNITION (Details Textual) (USD $) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
Deferred Revenue Arrangement [Line Items] | ' | ' | ' | ' | ' |
Amortization Of Deferred Equipment Revenue | $905,000 | $752,000 | $1,811,000 | $1,474,000 | ' |
Unbilled Receivables, Current | $8,000 | ' | $8,000 | ' | $0 |
FINANCING_RECEIVABLES_Details
FINANCING RECEIVABLES (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | |
Less: Allowance for credit losses | $0 | $0 | |
Financing Receivable, Net | 13,109,000 | 14,306,000 | |
Financing receivables, net current | 4,160,000 | 4,051,000 | [1] |
Financing receivables - less current portion | 8,949,000 | 10,255,000 | [1] |
Notes Receivable [Member] | ' | ' | |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | |
Financing receivables, Gross | 40,000 | 53,000 | |
Financing receivables, net current | 26,000 | 25,000 | |
Sales-type lease receivable [Member] | ' | ' | |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | |
Financing receivables, Gross | 13,069,000 | 14,253,000 | |
Financing receivables, net current | $4,134,000 | $4,026,000 | |
[1] | Derived from audited balance sheet as of December 31, 2013 |
FINANCING_RECEIVABLES_Details_
FINANCING RECEIVABLES (Details 1) (USD $) | Jun. 30, 2014 |
Financing Receivable, Recorded Investment [Line Items] | ' |
April - December 2014 | $2,110,000 |
2015 | 3,980,000 |
2016 | 3,773,000 |
2017 | 2,484,000 |
2018 | 662,000 |
Thereafter | 60,000 |
Capital Leases, Future Minimum Payments Receivable | 13,069,000 |
Less: Current portion | 4,134,000 |
Sales-type lease receivable - less current portion | $8,935,000 |
FINANCING_RECEIVABLES_Details_1
FINANCING RECEIVABLES (Details Textual) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Unearned Income On Sales Type Leases | $999,000 | $1,169,000 |
Minimum [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Product Financing Arrangements Bearing Interest Rate | 8.00% | ' |
Discount Rate Of Unearned Income | 2.00% | ' |
Maximum [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Product Financing Arrangements Bearing Interest Rate | 10.00% | ' |
Discount Rate Of Unearned Income | 29.00% | ' |
INVENTORY_Details
INVENTORY (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | |
Inventory [Line Items] | ' | ' | |
Components | $2,661,000 | $2,968,000 | |
Finished goods | 2,071,000 | 2,188,000 | |
Inventory, Net | $4,732,000 | $5,156,000 | [1] |
[1] | Derived from audited balance sheet as of December 31, 2013 |
FIXED_ASSETS_Details
FIXED ASSETS (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | ' | ' | |
Property, Plant and Equipment, Gross | $8,142,000 | $7,858,000 | |
Accumulated depreciation and amortization | -6,187,000 | -5,619,000 | |
Property, Plant and Equipment, Net | 1,955,000 | 2,239,000 | [1] |
Equipment [Member] | ' | ' | |
Property, Plant and Equipment [Line Items] | ' | ' | |
Property, Plant and Equipment, Gross | 1,456,000 | 1,375,000 | |
Computer software [Member] | ' | ' | |
Property, Plant and Equipment [Line Items] | ' | ' | |
Property, Plant and Equipment, Gross | 3,407,000 | 3,319,000 | |
Computer hardware [Member] | ' | ' | |
Property, Plant and Equipment [Line Items] | ' | ' | |
Property, Plant and Equipment, Gross | 2,680,000 | 2,565,000 | |
Furniture and fixtures [Member] | ' | ' | |
Property, Plant and Equipment [Line Items] | ' | ' | |
Property, Plant and Equipment, Gross | 371,000 | 371,000 | |
Automobiles [Member] | ' | ' | |
Property, Plant and Equipment [Line Items] | ' | ' | |
Property, Plant and Equipment, Gross | 47,000 | 47,000 | |
Leasehold improvements [Member] | ' | ' | |
Property, Plant and Equipment [Line Items] | ' | ' | |
Property, Plant and Equipment, Gross | $181,000 | $181,000 | |
[1] | Derived from audited balance sheet as of December 31, 2013 |
FIXED_ASSETS_Details_Textual
FIXED ASSETS (Details Textual) (USD $) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Depreciation, Depletion and Amortization, Nonproduction | $290,000 | $252,000 | $568,000 | $498,000 | ' |
Amortization | 273,000 | 253,000 | 546,000 | 546,000 | ' |
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation | 28,000 | ' | 28,000 | ' | ' |
Capital Leases, Income Statement, Amortization Expense | 15,000 | 0 | 28,000 | 0 | ' |
Capital Leased Assets, Gross | ' | ' | ' | ' | 305,000 |
Capital Leases, Balance Sheet, Assets by Major Class, Net | 277,000 | ' | 277,000 | ' | ' |
Computer Software and Website Development [Member] | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Amortization | 145,000 | 141,000 | 286,000 | 283,000 | ' |
Capitalized Website Enhancement | ' | ' | 89,000 | 2,000 | ' |
Computer Equipment [Member] | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Computer Equipment Not Yet Placed In Service | ' | ' | ' | ' | $480,000 |
INTANGIBLE_ASSETS_AND_GOODWILL2
INTANGIBLE ASSETS AND GOODWILL (Details) (USD $) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2014 | Dec. 31, 2013 | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' | |
Finite-Lived Intangible Assets, Gross | $6,505,000 | $6,505,000 | |
Finite-Lived Intangible Assets, Accumulated Amortization | -5,152,000 | -4,606,000 | |
Finite-Lived Intangible Assets, Net, Total | 1,353,000 | 1,899,000 | |
Indefinite-Lived Intangible Assets (Excluding Goodwill) | 165,000 | 165,000 | |
Intangible Assets Gross | 6,670,000 | 6,670,000 | |
Total | 1,518,000 | 2,064,000 | [1] |
Customer list [Member] | ' | ' | |
Finite-Lived Intangible Assets [Line Items] | ' | ' | |
Indefinite-Lived Intangible Assets (Excluding Goodwill) | 104,000 | 104,000 | |
Trademark and Tradename [Member] | ' | ' | |
Finite-Lived Intangible Assets [Line Items] | ' | ' | |
Indefinite-Lived Intangible Assets (Excluding Goodwill) | 61,000 | 61,000 | |
Patents [Member] | ' | ' | |
Finite-Lived Intangible Assets [Line Items] | ' | ' | |
Finite-Lived Intangible Assets, Gross | 1,489,000 | 1,489,000 | |
Finite-Lived Intangible Assets, Accumulated Amortization | -609,000 | -541,000 | |
Finite-Lived Intangible Assets, Net, Total | 880,000 | 948,000 | |
Finite-Lived Intangible Asset, Useful Life | '11 years | '11 years | |
Tradename [Member] | ' | ' | |
Finite-Lived Intangible Assets [Line Items] | ' | ' | |
Finite-Lived Intangible Assets, Gross | 200,000 | 200,000 | |
Finite-Lived Intangible Assets, Accumulated Amortization | -180,000 | -160,000 | |
Finite-Lived Intangible Assets, Net, Total | 20,000 | 40,000 | |
Finite-Lived Intangible Asset, Useful Life | '5 years | '5 years | |
Non-competition agreement [Member] | ' | ' | |
Finite-Lived Intangible Assets [Line Items] | ' | ' | |
Finite-Lived Intangible Assets, Gross | 234,000 | 234,000 | |
Finite-Lived Intangible Assets, Accumulated Amortization | -234,000 | -234,000 | |
Finite-Lived Intangible Assets, Net, Total | 0 | 0 | |
Finite-Lived Intangible Asset, Useful Life | '3 years | '3 years | |
Technology [Member] | ' | ' | |
Finite-Lived Intangible Assets [Line Items] | ' | ' | |
Finite-Lived Intangible Assets, Gross | 50,000 | 50,000 | |
Finite-Lived Intangible Assets, Accumulated Amortization | -47,000 | -42,000 | |
Finite-Lived Intangible Assets, Net, Total | 3,000 | 8,000 | |
Finite-Lived Intangible Asset, Useful Life | '5 years | '5 years | |
Workforce [Member] | ' | ' | |
Finite-Lived Intangible Assets [Line Items] | ' | ' | |
Finite-Lived Intangible Assets, Gross | 33,000 | 33,000 | |
Finite-Lived Intangible Assets, Accumulated Amortization | -31,000 | -28,000 | |
Finite-Lived Intangible Assets, Net, Total | 2,000 | 5,000 | |
Finite-Lived Intangible Asset, Useful Life | '5 years | '5 years | |
Customer relationships [Member] | ' | ' | |
Finite-Lived Intangible Assets [Line Items] | ' | ' | |
Finite-Lived Intangible Assets, Gross | 4,499,000 | 4,499,000 | |
Finite-Lived Intangible Assets, Accumulated Amortization | -4,051,000 | -3,601,000 | |
Finite-Lived Intangible Assets, Net, Total | $448,000 | $898,000 | |
Finite-Lived Intangible Asset, Useful Life | '5 years | '5 years | |
[1] | Derived from audited balance sheet as of December 31, 2013 |
INTANGIBLE_ASSETS_AND_GOODWILL3
INTANGIBLE ASSETS AND GOODWILL (Details 1) (USD $) | Jun. 30, 2014 |
Year ending December 31: | ' |
July - December 2014 | $541,000 |
2015 | 135,000 |
2016 | 135,000 |
2017 | 135,000 |
2018 | $135,000 |
INTANGIBLE_ASSETS_AND_GOODWILL4
INTANGIBLE ASSETS AND GOODWILL (Details Textual) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Amortization | $273,000 | $253,000 | $546,000 | $546,000 |
STOCKBASED_COMPENSATION_Detail
STOCK-BASED COMPENSATION (Details) (Employee Stock Option [Member], USD $) | 6 Months Ended |
Jun. 30, 2014 | |
Employee Stock Option [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Options, Outstanding at beginning of year | 2,790,000 |
Options, Granted | 10,000 |
Options, Exercised | -15,000 |
Options, Expired | -373,000 |
Options, Forfeited | -149,000 |
Options, Outstanding at end of year | 2,263,000 |
Options, Exercisable at end of period | 1,897,000 |
Weighted Average Exercise Price, Outstanding at beginning of year (in dollars per share) | $7.25 |
Weighted Average Exercise Price, Granted (in dollars per share) | $5.83 |
Weighted Average Exercise Price, Exercised (in dollars per share) | $3.87 |
Weighted Average Exercise Price, Expired (in dollars per share) | $6.70 |
Weighted Average Exercise Price, Forfeited (in dollars per share) | $5.24 |
Weighted Average Exercise Price, Outstanding at end of year (in dollars per share) | $7.48 |
Weighted Average Exercise Price, Exercisable at end of period (in dollars per share) | $7.87 |
Weighted- Average Remaining Contractual Term, Outstanding at end of period (in years) | '5 years |
Weighted- Average Remaining Contractual Term, Exercisable at end of period (in years) | '4 years |
Aggregate Intrinsic Value, Outstanding at end of period (in dollars) | $1,801,000 |
Aggregate Intrinsic Value, Exercisable at end of period (in dollars) | $1,704,000 |
STOCKBASED_COMPENSATION_Detail1
STOCK-BASED COMPENSATION (Details 1) (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' |
Expected volatility | 45.00% | ' |
Expected life of options (in years) | '4 years | ' |
Risk free interest rate | 1.30% | 1.00% |
Dividend yield | 0.00% | 0.00% |
Weighted-average fair value of options granted during the period (in dollars per share) | $2.13 | $2.22 |
Minimum [Member] | ' | ' |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' |
Expected volatility | ' | 44.70% |
Expected life of options (in years) | ' | '4 years |
Maximum [Member] | ' | ' |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' |
Expected volatility | ' | 54.80% |
Expected life of options (in years) | ' | '5 years |
STOCKBASED_COMPENSATION_Detail2
STOCK-BASED COMPENSATION (Details 2) (Restricted Stock [Member], USD $) | 6 Months Ended |
Jun. 30, 2014 | |
Restricted Stock [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Non-vested shares, beginning of year | 200,000 |
Number of Non-vested Shares,Granted | 109,000 |
Number of Non-vested Shares,Vested | -95,000 |
Number of Non-vested Shares, Forfeited | -72,000 |
Non-vested shares, end of year | 142,000 |
Weighted- Average Grant Date Fair Value,Restricted stock, non-vested, beginning of year (in dollars per share) | $5.08 |
Weighted- Average Grant Date Fair Value,Granted (in dollars per share) | $5.83 |
Weighted- Average Grant Date Fair Value,Vested (in dollars per share) | $5.03 |
Weighted- Average Grant Date Fair Value,Forfeited (in dollars per share) | $4.80 |
Weighted- Average Grant Date Fair Value,Restricted stock, non-vested, end of year (in dollars per share) | $5.83 |
STOCKBASED_COMPENSATION_Detail3
STOCK-BASED COMPENSATION (Details 3) (Performance Shares [Member]) | 6 Months Ended |
Jun. 30, 2014 | |
Performance Shares [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Non-vested shares, beginning of year | 34,000 |
Non-vested Shares, Granted | 0 |
Non-vested Shares, Vested | 0 |
Non-vested Shares, Forfeited | -16,000 |
Non-vested shares, end of year | 18,000 |
STOCKBASED_COMPENSATION_Detail4
STOCK-BASED COMPENSATION (Details Textual) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2011 | Jun. 30, 2014 | Jun. 30, 2013 | Mar. 31, 2014 | Jun. 30, 2014 | Aug. 22, 2011 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | |
Separation Agreement [Member] | Agreement [Member] | Avis Budget Group, Inc. [Member] | Stock Option Plan 1995 [Member] | Stock Option Plan 1999 [Member] | Director Option Plan 1999 [Member] | Non Employee Director Plan 2009 [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Equity Compensation Plan 2007 [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 | ' | ' | ' | ' | ' | ' | ' | ' | 1,250,000 | 2,813,000 | 600,000 | 600,000 | ' | ' | ' | ' | 2,500,000 |
Allocated Share-based Compensation Expense | $15,000 | $185,000 | ' | $314,000 | $324,000 | $327,000 | $49,000 | ' | ' | ' | ' | ' | $5,000 | $163,000 | $314,000 | $273,000 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value | ' | ' | ' | 30,000 | 11,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | ' | ' | ' | 641,000 | 504,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | 539,000 | ' | ' | 539,000 | ' | ' | ' | ' | ' | ' | ' | ' | 589,000 | ' | 589,000 | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | ' | ' | ' | '2 years 9 months 4 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year 7 months 28 days | ' | ' |
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | ' | ' | ' | ' | ' | ' | ' | 600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Time Bound Warrant Or Right Number Of Securities Called By Warrants Or Rights | ' | ' | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Condition Based Warrant Or Right Number Of Securities Called By Warrants Or Rights | ' | ' | ' | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Time Line Agreed To File Form S3 From Date Of Request (In Days) | ' | ' | ' | 30 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Time Line Agreed To Declare Registration Statement Effective From Date Of Request Without Reviews (In Days) | ' | ' | ' | 90 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Time Line Agreed To Declare Registration Statement Effective From Date Of Request With Reviews (In Days) | ' | ' | ' | 120 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number Of Warrants Vested | ' | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number Of Warrants Nonvested | ' | ' | ' | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares Paid for Tax Withholding for Share Based Compensation | ' | ' | ' | 24,000 | 38,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Adjustments Related to Tax Withholding for Share-based Compensation | ' | ' | ' | $137,000 | $202,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Class of Warrant or Right, Exercise Price of Warrants or Rights | ' | ' | ' | ' | ' | ' | ' | $10 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
NET_LOSS_PER_SHARE_OF_COMMON_S2
NET LOSS PER SHARE OF COMMON STOCK (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Basic and diluted loss per share | ' | ' | ' | ' |
Net loss | ($1,705,000) | ($1,707,000) | ($4,536,000) | ($4,329,000) |
Weighted-average shares outstanding (in shares) | 12,089,000 | 11,887,000 | 12,054,000 | 11,863,000 |
Basic and diluted net loss per share (in dollars per share) | ($0.14) | ($0.14) | ($0.38) | ($0.36) |
NET_LOSS_PER_SHARE_OF_COMMON_S3
NET LOSS PER SHARE OF COMMON STOCK (Details Textual) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,523,000 | 3,293,000 | 2,523,000 | 3,293,000 |
ACCOUNTS_PAYABLE_AND_ACCRUED_E2
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | |
Accounts Payable And Accrued Expenses [Line Items] | ' | ' | |
Accounts payable | $6,514,000 | $5,303,000 | |
Accrued warranty | 459,000 | 522,000 | |
Accrued severance | 301,000 | 100,000 | |
Accrued compensation | 632,000 | 172,000 | |
Other current liabilities | 166,000 | 167,000 | |
Accounts payable and accrued expenses | $8,072,000 | $6,264,000 | [1] |
[1] | Derived from audited balance sheet as of December 31, 2013 |
ACCOUNTS_PAYABLE_AND_ACCRUED_E3
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details 1) (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Movement in Standard and Extended Product Warranty [Line Items] | ' | ' |
Accrued warranty reserve, beginning of period | $522,000 | $520,000 |
Accrual for product warranties issued | 141,000 | 264,000 |
Product replacements and other warranty expenditures | -67,000 | -176,000 |
Expiration of warranties | -137,000 | -82,000 |
Accrued warranty reserve, end of period | $459,000 | $526,000 |
ACCOUNTS_PAYABLE_AND_ACCRUED_E4
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details Textual) (USD $) | 6 Months Ended |
Jun. 30, 2014 | |
Accounts Payable And Accrued Expenses [Line Items] | ' |
Severance Costs | $301,000 |
Severance Costs Payable, Monthly Installments, Amount | $20,000 |
CAPITAL_LEASE_OBLIGATION_Detai
CAPITAL LEASE OBLIGATION (Details) (USD $) | Jun. 30, 2014 |
Year ending December 31: | ' |
July - December 2014 | $87,000 |
2015 | 159,000 |
Capital Leases, Future Minimum Payments Due, Total | 246,000 |
Less: amount representing interest | -22,000 |
Total | $224,000 |
CAPITAL_LEASE_OBLIGATION_Detai1
CAPITAL LEASE OBLIGATION (Details Textual) (USD $) | 6 Months Ended |
Jun. 30, 2014 | |
Capital Leased Assets [Line Items] | ' |
Capital Lease Payable Monthly Installment Value Including Interest | $14,000 |
Percentage Of Interest Capital Lease | 12.82% |
Capital Lease Maturity Date | 'December 2015 |
Capital Leases, Equipment Residual Value | $1 |
INCOME_TAXES_Details_Textual
INCOME TAXES (Details Textual) (USD $) | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
Income Taxes [Line Items] | ' | ' | ' |
Sale Approved Net Value | ' | ' | $760,000 |
Proceeds From Sale Of Tax Benefits | 63,000 | 662,000 | ' |
Sale Approved | ' | ' | 10,338,000 |
Sale Approved Percentage | ' | ' | 7.40% |
New Jersey [Member] | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' |
Operating Loss Carryforwards | ' | ' | $10,338,000 |
CONCENTRATION_OF_CUSTOMERS_Det
CONCENTRATION OF CUSTOMERS (Details Textual) (Customer Concentration Risk [Member]) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Sales Revenue, Net [Member] | Customer One [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 18.00% | 20.00% |
Sales Revenue, Net [Member] | Customer Two [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 16.00% | 10.00% |
Accounts Receivable [Member] | Customer One [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 13.00% | 14.00% |
Notes and Sales-type Lease Receivables [Member] | Customer One [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 51.00% | 61.00% |
STOCK_REPURCHASE_PROGRAM_Detai
STOCK REPURCHASE PROGRAM (Details Textual) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Nov. 03, 2010 | |
Share Repurchase Program [Member] | Share Repurchase Program [Member] | ||||
Treasury Stock, Shares | 663,000 | 639,000 | 310,000 | ' | |
Treasury Stock, Value | $3,583,000 | $3,446,000 | [1] | $1,340,000 | ' |
Treasury Stock Acquired, Average Cost Per Share | ' | ' | $4.33 | ' | |
Stock Repurchase Program, Authorized Amount | ' | ' | ' | $3,000,000 | |
[1] | Derived from audited balance sheet as of December 31, 2013 |
ACCUMULATED_OTHER_COMPREHENSIV2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | |
Foreign currency items, Balance at Beginning | ' | ' | ($97,000) | ($20,000) | |
Foreign currency items, Net current period change | ' | ' | 76,000 | -86,000 | |
Foreign currency items, Balance at End | -21,000 | -106,000 | -21,000 | -106,000 | |
Unrealized gain(losses) on investments, Balance at Beginning | ' | ' | -9,000 | 73,000 | |
Unrealized gain(losses) on investments, Net current period change | ' | ' | 10,000 | -98,000 | |
Unrealized gain(losses) on investments, Balance at End | 1,000 | -25,000 | 1,000 | -25,000 | |
Accumulated other comprehensive income, Balance at Beginning | ' | ' | -106,000 | [1] | 53,000 |
Accumulated other comprehensive income, Net current period change | 26,000 | -83,000 | 86,000 | -184,000 | |
Accumulated other comprehensive income, Balance at End | ($20,000) | ($131,000) | ($20,000) | ($131,000) | |
[1] | Derived from audited balance sheet as of December 31, 2013 |
ACCUMULATED_OTHER_COMPREHENSIV3
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details Textual) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net Of Tax | $17,000 | ($22,000) | $76,000 | ($86,000) |
WHOLLY_OWNED_FOREIGN_SUBSIDIAR2
WHOLLY OWNED FOREIGN SUBSIDIARIES (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Foreign Subsidiaries Financial Information Disclosure [Line Items] | ' | ' | ' | ' |
Net revenue | $11,413,000 | $9,370,000 | $21,149,000 | $17,384,000 |
Net (loss) income | -1,705,000 | -1,707,000 | -4,536,000 | -4,329,000 |
IDS GmbH [Member] | ' | ' | ' | ' |
Foreign Subsidiaries Financial Information Disclosure [Line Items] | ' | ' | ' | ' |
Net revenue | 1,155,000 | 552,000 | 1,768,000 | 719,000 |
Net (loss) income | $226,000 | ($23,000) | $289,000 | ($146,000) |
WHOLLY_OWNED_FOREIGN_SUBSIDIAR3
WHOLLY OWNED FOREIGN SUBSIDIARIES (Details 1) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Foreign Subsidiaries Financial Information Disclosure [Line Items] | ' | ' | ' | ' |
Net revenue | $11,413,000 | $9,370,000 | $21,149,000 | $17,384,000 |
Net income (loss) | -1,705,000 | -1,707,000 | -4,536,000 | -4,329,000 |
IDS Ltd [Member] | ' | ' | ' | ' |
Foreign Subsidiaries Financial Information Disclosure [Line Items] | ' | ' | ' | ' |
Net revenue | 72,000 | 323,000 | 172,000 | 393,000 |
Net income (loss) | ($84,000) | $1,000 | ($171,000) | ($171,000) |
WHOLLY_OWNED_FOREIGN_SUBSIDIAR4
WHOLLY OWNED FOREIGN SUBSIDIARIES (Details Textual) (USD $) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | ||
Foreign Subsidiaries Financial Information Disclosure [Line Items] | ' | ' | ' | ' | ' | |
Assets, Total | $54,479,000 | ' | $54,479,000 | ' | $55,515,000 | [1] |
Foreign Currency Transaction Gain (Loss), Realized | 29,000 | 0 | 32,000 | -29,000 | ' | |
IDS GmbH [Member] | ' | ' | ' | ' | ' | |
Foreign Subsidiaries Financial Information Disclosure [Line Items] | ' | ' | ' | ' | ' | |
Assets, Total | 2,884,000 | ' | 2,884,000 | ' | 1,701,000 | |
IDS Ltd [Member] | ' | ' | ' | ' | ' | |
Foreign Subsidiaries Financial Information Disclosure [Line Items] | ' | ' | ' | ' | ' | |
Assets, Total | $2,108,000 | ' | $2,108,000 | ' | $2,200,000 | |
[1] | Derived from audited balance sheet as of December 31, 2013 |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Details Textual) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Mar. 31, 2014 | |
Separation Agreement [Member] | |||||
Other Commitments [Line Items] | ' | ' | ' | ' | ' |
Allocated Share-Based Compensation Expense | $15,000 | $185,000 | $314,000 | $324,000 | $327,000 |
Severance Costs | ' | ' | $301,000 | ' | $523,000 |