Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Mar. 24, 2015 | Jun. 30, 2014 |
Document Information [Line Items] | |||
Entity Registrant Name | ID SYSTEMS INC | ||
Entity Central Index Key | 49615 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Smaller Reporting Company | ||
Trading Symbol | IDSY | ||
Entity Common Stock, Shares Outstanding | 12,831,974 | ||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2014 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $61.30 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Current assets: | ||
Cash and cash equivalents | $5,974,000 | $6,582,000 |
Restricted cash | 303,000 | 300,000 |
Investments - short term | 3,249,000 | 4,090,000 |
Accounts receivable, net of allowance for doubtful accounts of $955,000 and $1,434,000 in 2013 and 2014, respectively | 14,783,000 | 9,574,000 |
Financing receivables - current, net of allowance for doubtful accounts of $-0- in 2013 and 2014 | 1,898,000 | 4,051,000 |
Inventory, net | 6,252,000 | 5,156,000 |
Deferred costs - current | 2,183,000 | 2,112,000 |
Prepaid expenses and other current assets | 1,767,000 | 909,000 |
Deferred tax asset - current | 0 | 63,000 |
Total current assets | 36,409,000 | 32,837,000 |
Investments - long term | 4,066,000 | 3,100,000 |
Financing receivables - less current portion | 4,072,000 | 10,255,000 |
Deferred costs - less current portion | 3,281,000 | 2,861,000 |
Fixed assets, net | 1,520,000 | 2,239,000 |
Goodwill | 1,837,000 | 1,837,000 |
Intangible assets, net | 977,000 | 2,064,000 |
Other assets | 324,000 | 322,000 |
Assets, Total | 52,486,000 | 55,515,000 |
Current liabilities: | ||
Accounts payable and accrued expenses | 10,102,000 | 6,264,000 |
Capital lease obligation - current | 149,000 | 144,000 |
Deferred revenue - current | 6,742,000 | 4,641,000 |
Total current liabilities | 16,993,000 | 11,049,000 |
Capital lease obligation - less current portion | 0 | 149,000 |
Deferred rent | 309,000 | 330,000 |
Deferred revenue - less current portion | 7,929,000 | 6,538,000 |
Liabilities, Total | 25,231,000 | 18,066,000 |
Commitments and Contingencies (Note 19) | ||
STOCKHOLDERS' EQUITY | ||
Preferred stock; authorized 5,000,000 shares, $0.01 par value; none issued | 0 | 0 |
Common stock; authorized 50,000,000 shares, $0.01 par value; 12,835,000 and 13,476,000 shares issued at December 31, 2013 and 2014, respectively; shares outstanding, 12,196,000 and 12,812,000 at December 31, 2013 and 2014, respectively | 124,000 | 123,000 |
Additional paid-in capital | 106,272,000 | 104,479,000 |
Accumulated deficit | -75,176,000 | -63,601,000 |
Accumulated other comprehensive income (loss) | -375,000 | -106,000 |
Treasury stock; 639,000 and 664,000 common shares at cost at December 31, 2013 and 2014, respectively | -3,590,000 | -3,446,000 |
Total stockholders’ equity | 27,255,000 | 37,449,000 |
Total liabilities and stockholders’ equity | $52,486,000 | $55,515,000 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets [Parenthetical] (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Allowance for doubtful accounts receivable (in dollars) | $1,434,000 | $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 | 13,476,000 | 12,835,000 |
Common stock, shares outstanding | 12,812,000 | 12,196,000 |
Treasury stock, shares | 664,000 | 639,000 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Revenues: | |||
Products | $28,403,000 | $23,140,000 | $28,640,000 |
Services | 17,230,000 | 16,806,000 | 15,995,000 |
Revenue, Net, Total | 45,633,000 | 39,946,000 | 44,635,000 |
Cost of Revenues: | |||
Cost of products | 19,458,000 | 15,914,000 | 16,038,000 |
Cost of services | 6,169,000 | 6,122,000 | 5,667,000 |
Cost of Goods and Services Sold, Total | 25,627,000 | 22,036,000 | 21,705,000 |
Gross Profit | 20,006,000 | 17,910,000 | 22,930,000 |
Operating expenses: | |||
Selling, general and administrative expenses | 25,094,000 | 21,769,000 | 22,409,000 |
Research and development expenses | 6,649,000 | 4,389,000 | 4,341,000 |
Loss on settlement of finance receivable | 441,000 | 0 | 0 |
Operating Expenses, Total | 32,184,000 | 26,158,000 | 26,750,000 |
Loss from operations | -12,178,000 | -8,248,000 | -3,820,000 |
Interest income, net | 566,000 | 635,000 | 507,000 |
Other income, net | 37,000 | 51,000 | 59,000 |
Net loss before income taxes | -11,575,000 | -7,562,000 | -3,254,000 |
Income tax benefit - sale of NJ net operating losses | 0 | 63,000 | 662,000 |
Net loss | ($11,575,000) | ($7,499,000) | ($2,592,000) |
Net loss per share - basic and diluted (in dollars per share) | ($0.96) | ($0.63) | ($0.22) |
Weighted average common shares outstanding - basic and diluted (in shares) | 12,098,000 | 11,912,000 | 11,744,000 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Loss (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Net loss | ($11,575,000) | ($7,499,000) | ($2,592,000) |
Other comprehensive income (loss), net: | |||
Unrealized gain (loss) on investments | -13,000 | -55,000 | 78,000 |
Reclassification of net realized investment (gains) losses included in net loss | 7,000 | -27,000 | 18,000 |
Foreign currency translation adjustment | -263,000 | -77,000 | 6,000 |
Total other comprehensive income (loss) | -269,000 | -159,000 | 102,000 |
Comprehensive loss | ($11,844,000) | ($7,658,000) | ($2,490,000) |
Consolidated_Statements_of_Cha
Consolidated Statements 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, 2011 | $45,600,000 | $121,000 | $101,766,000 | ($53,510,000) | ($49,000) | ($2,728,000) |
Balance (in shares) at Dec. 31, 2011 | 12,546,000 | |||||
Net loss | -2,592,000 | 0 | 0 | -2,592,000 | 0 | 0 |
Foreign currency translation adjustment | 6,000 | 0 | 0 | 6,000 | 0 | |
Unrealized loss on investments | 96,000 | 0 | 0 | 96,000 | 0 | |
Shares repurchased | -193,000 | 0 | 0 | 0 | -193,000 | |
Shares issued pursuant to exercise of stock options | 216,000 | 1,000 | 215,000 | 0 | 0 | 0 |
Shares issued pursuant to exercise of stock options (in shares) | 56,000 | |||||
Shares withheld pursuant to exercise of stock options and restricted stock | -260,000 | 0 | 0 | 0 | 0 | -260,000 |
Shares withheld pursuant to exercise of stock options and restricted stock (in shares) | 0 | |||||
Issuance of restricted stock | 0 | 0 | 0 | 0 | 0 | 0 |
Issuance of restricted stock (in shares) | 76,000 | |||||
Stock based compensation - restricted stock | 510,000 | 0 | 510,000 | 0 | 0 | 0 |
Stock based compensation - options and performance shares | 644,000 | 644,000 | 0 | 0 | 0 | |
Balance at Dec. 31, 2012 | 44,027,000 | 122,000 | 103,135,000 | -56,102,000 | 53,000 | -3,181,000 |
Balance (in shares) at Dec. 31, 2012 | 12,678,000 | |||||
Net loss | -7,499,000 | 0 | 0 | -7,499,000 | 0 | 0 |
Foreign currency translation adjustment | -77,000 | 0 | 0 | 0 | -77,000 | 0 |
Unrealized loss on investments | -82,000 | 0 | 0 | 0 | -82,000 | 0 |
Shares issued pursuant to exercise of stock options | 227,000 | 1,000 | 226,000 | 0 | 0 | 0 |
Shares issued pursuant to exercise of stock options (in shares) | 67,000 | |||||
Shares withheld pursuant to exercise of stock options and restricted stock | -265,000 | 0 | 0 | 0 | 0 | -265,000 |
Shares withheld pursuant to exercise of stock options and restricted stock (in shares) | 0 | |||||
Issuance of restricted stock | 0 | 0 | 0 | 0 | 0 | 0 |
Issuance of restricted stock (in shares) | 101,000 | |||||
Forfeiture of restricted shares (in shares) | -11,000 | |||||
Stock based compensation - restricted stock | 527,000 | 0 | 527,000 | 0 | 0 | 0 |
Stock based compensation - options and performance shares | 591,000 | 0 | 591,000 | 0 | 0 | 0 |
Balance at Dec. 31, 2013 | 37,449,000 | 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 | -11,575,000 | 0 | 0 | -11,575,000 | 0 | 0 |
Foreign currency translation adjustment | -263,000 | 0 | 0 | 0 | -263,000 | 0 |
Unrealized loss on investments | -6,000 | 0 | 0 | 0 | -6,000 | 0 |
Shares issued pursuant to exercise of stock options | 460,000 | 1,000 | 459,000 | 0 | 0 | 0 |
Shares issued pursuant to exercise of stock options (in shares) | 126,000 | |||||
Shares withheld pursuant to exercise of stock options and restricted stock | -144,000 | 0 | 0 | 0 | 0 | -144,000 |
Shares withheld pursuant to exercise of stock options and restricted stock (in shares) | 0 | |||||
Issuance of restricted stock | 0 | 0 | 0 | 0 | 0 | 0 |
Issuance of restricted stock (in shares) | 608,000 | |||||
Forfeiture of restricted shares (in shares) | -93,000 | |||||
Stock based compensation - restricted stock | 787,000 | 0 | 787,000 | 0 | 0 | 0 |
Stock based compensation - options and performance shares | 547,000 | 0 | 547,000 | 0 | 0 | 0 |
Balance at Dec. 31, 2014 | $27,255,000 | $124,000 | $106,272,000 | ($75,176,000) | ($375,000) | ($3,590,000) |
Balance (in shares) at Dec. 31, 2014 | 13,476,000 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Cash flows from operating activities: | |||
Net loss | ($11,575,000) | ($7,499,000) | ($2,592,000) |
Adjustments to reconcile net loss to cash used in operating activities: | |||
Inventory reserve | 122,000 | 2,066,000 | 134,000 |
Stock based compensation | 1,334,000 | 1,118,000 | 1,154,000 |
Depreciation and amortization | 2,216,000 | 2,171,000 | 2,186,000 |
Bad debt reserve | 853,000 | 482,000 | 432,000 |
Loss on settlement of finance receivable | 441,000 | ||
Deferred income taxes | 0 | -63,000 | -662,000 |
Proceeds from sale of New Jersey net operating loss carryforward | 63,000 | 662,000 | 390,000 |
Other non-cash items | 18,000 | -13,000 | 16,000 |
Changes in: | |||
Restricted cash | -3,000 | 0 | 0 |
Accounts receivable | -6,293,000 | -1,186,000 | -1,299,000 |
Proceeds from settlement of finance receivable | 5,371,000 | ||
Financing receivables | 2,535,000 | -354,000 | -8,639,000 |
Inventory | -1,218,000 | 290,000 | 468,000 |
Prepaid expenses and other assets | -860,000 | 119,000 | 1,149,000 |
Deferred costs | -491,000 | 58,000 | -1,165,000 |
Deferred revenue | 3,492,000 | 621,000 | 3,136,000 |
Accounts payable and accrued expenses | 3,694,000 | 385,000 | -3,844,000 |
Net cash used in operating activities | -301,000 | -1,143,000 | -9,136,000 |
Cash flows from investing activities: | |||
Capital expenditures | -410,000 | -538,000 | -326,000 |
Purchases of investments | -5,357,000 | -3,841,000 | -5,478,000 |
Maturities of investments | 5,187,000 | 10,427,000 | 8,399,000 |
Net cash provided by(used in) investing activities | -580,000 | 6,048,000 | 2,595,000 |
Cash flows from financing activities: | |||
Principal payments of capital lease obligation | -144,000 | -12,000 | |
Proceeds from exercise of stock options | 460,000 | 203,000 | 117,000 |
Purchase of treasury shares | 0 | 0 | -193,000 |
Net cash (used in) provided by financing activities | 316,000 | 191,000 | -76,000 |
Effect of foreign exchange rate changes on cash and cash equivalents | -43,000 | -128,000 | -155,000 |
Net (decrease) increase in cash and cash equivalents | -608,000 | 4,968,000 | -6,772,000 |
Cash and cash equivalents - beginning of period | 6,582,000 | 1,614,000 | 8,386,000 |
Cash and cash equivalents - end of period | 5,974,000 | 6,582,000 | 1,614,000 |
Supplemental disclosure of cash flow information: | |||
Interest | 29,000 | 0 | 0 |
Non-cash investing and financing activities include: | |||
Shares withheld pursuant to stock issuance | 144,000 | 265,000 | 260,000 |
Unrealized gain loss on investments | -6,000 | -82,000 | 96,000 |
Fixed assets acquired by capital lease | $0 | $305,000 | $0 |
THE_COMPANY
THE COMPANY | 12 Months Ended |
Dec. 31, 2014 | |
Organization, Consolidation and Presentation Of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | NOTE 1 - 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. | |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies [Text Block] | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
[A] Principles of consolidation: | |
The 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”) (which, as noted above, are collectively referred to herein as the “Company”). All material intercompany balances and transactions have been eliminated in consolidation. | |
[B] Use of estimates: | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“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. | |
[C] Cash and cash equivalents: | |
The Company considers all highly liquid debt instruments with an original maturity of three months or less when purchased to be cash equivalents unless they are legally or contractually restricted. The Company’s cash and cash equivalent balances generally exceed FDIC limits. | |
[D] Restricted cash: | |
Restricted cash at December 31, 2013 and 2014 consists of cash held in escrow for purchases from a vendor. | |
[E] Investments: | |
The Company’s investments include debt securities, U.S. Treasury Notes, government and state agency bonds, mutual funds, corporate bonds, common stock 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. 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). The Company has classified as short-term those securities that mature within one year, mutual funds and common stock, and all other securities are classified as long-term. Realized gains and losses from the sale of available for sale securities are determined on a specific-identification basis. Net realized gains and losses from the sale of investment securities available for sale are included in “other income” in the consolidated statement of operations. Dividend and interest income are recognized when earned. | |
[F] Accounts receivable: | |
Accounts receivable are recorded at the invoiced amount and do not bear interest. Amounts collected on trade accounts receivable are included in net cash provided by operating activities in the consolidated statements of cash flows. The Company maintains reserves against its accounts receivable for potential losses. Allowances for uncollectible accounts are estimated based on the Company’s periodic review of accounts receivable balances. In establishing the required allowance, management considers our customers’ financial condition, the amount of receivables in dispute, and the current receivables aging and current payment patterns. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. Accounts receivable are net of an allowance for doubtful accounts in the amount of $955,000 and $1,434,000 in 2013 and 2014, respectively. The Company does not have any off-balance sheet credit exposure related to its customers. | |
[G] Financing receivables: | |
Financing receivables include notes and sales-type lease receivables from the sale of the Company’s products and services. Notes receivable relate to interest-bearing product financing arrangements that exceed one year and are recorded at face value. Interest income is recognized over the life of the note. Amounts collected on notes receivable are included in net cash provided by operating activities in the consolidated statements of cash flows. Unearned income is amortized to interest income over the life of the notes using the effective-interest method. | |
The Company also derives revenue under leasing arrangements. 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 future minimum lease payments. Interest income is recognized monthly over the lease term using the effective-interest method. | |
The allowance for uncollectable minimum lease payments 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 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 our 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 years ended December 31, 2012, 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/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/lease. Notes and leases become past due based on how recently payments have been received. | |
[H] 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, software, and hosting infrastructure. 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 fair value of the element. VSOE of the fair value 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 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. | |
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 consolidated statements of operations. | |
[I] Deferred costs: | |
Deferred product costs consist of transportation asset management equipment costs deferred in accordance with our revenue recognition policy. The Company will continue to evaluate the realizability of the carrying amount of the deferred contract costs on a quarterly basis. To the extent the carrying value of the deferred contract costs exceed the contract revenue, an impairment loss will be recognized. | |
[J] 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. | |
Inventory valuation reserves are established in order to report inventories at the lower of cost or market value in the consolidated balance sheet. The determination of inventory valuation reserves requires management to make estimates and judgments on the future salability of inventories. Valuation reserves for obsolete and slow-moving inventory are estimated based on assumptions of future sales forecasts, product life cycle expectations, the impact of new product introductions, production requirements, and specific identification of items, such as product discontinuance or engineering/material changes and by comparing the inventory levels to historical usage rates. | |
In December 2013, as part of a strategic review and in response to engineering releases of new products and/or new components, the Company evaluated its product life cycle expectations as it relates to inventory on hand as of December 31, 2013. With the release of the Company’s next generation vehicle management systems vehicle platform, the VAC4, and the expansion of the Company’s product line of over-the-road asset management solutions, the Company made the strategic decision to discontinue offering the Powerkey and prior models of the satellite intermodal and rail product lines for sale to new customers in 2014. As a result of the strategic review of its products line, the Company recorded a $2,066,000 inventory reserve in December 2013. | |
[K] Fixed assets and depreciation: | |
Fixed assets are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the assets, which range from three to ten years. Leasehold improvements are amortized using the straight-line method over the terms of the respective leases, or their estimated useful lives, whichever is shorter. For website development costs, the Company capitalizes costs incurred during the application development stage. Costs related to preliminary project activities and post-implementation activities are expensed as incurred. Internal-use software is amortized on a straight-line basis over its estimated useful life, generally three years. | |
[L] Long-lived assets: | |
Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the assets to the future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets and would be charged to earnings. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. For the years ended December 31, 2012 and 2014, the Company has not incurred an impairment charge. For the year ended December 31, 2013 the Company recorded a $74,000 impairment charge related to its PowerKey tradename and trademark intangible assets which is included in amortization expense. With the release of the Company’s next generation vehicle management systems platform, the VAC4, the Company made the strategic decision to discontinue offering the Powerkey product line for sale to new customers in 2014. As result, the Company wrote-off the PowerKey tradename and trademark intangible assets in 2013. | |
[M] Goodwill and other intangible assets: | |
Goodwill represents costs in excess of fair values assigned to the underlying net assets of acquired businesses. Goodwill and intangible assets deemed to have indefinite lives are not amortized. Intangible assets other than goodwill are amortized over their useful lives unless the lives are determined to be indefinite. Intangible assets are carried at cost, less accumulated amortization. Intangible assets consist of trademarks and trade name, patents, customer relationships and other intangible assets. The Company tests goodwill and other intangible assets annually, or when a triggering event occurs between annual impairment tests, to determine if impairment exists and if the use of indefinite lives is currently applicable. For purposes of the goodwill impairment test, the Company’s product lines are aggregated within one reporting unit. For the years ended December 31, 2012, 2013 and 2014, the Company has not incurred an impairment charge. | |
[N] Product warranties: | |
The Company provides a one-year warranty on its products. Estimated future warranty costs are accrued in the period that the related revenue is recognized. These estimates are derived from historical data and trends of product reliability and costs of repairing and replacing defective products. | |
[O] Research and development: | |
Research and development costs are charged to expense as incurred. Research and development costs were $4,341,000, $4,389,000 and $6,649,000 in 2012, 2013 and 2014, respectively. | |
[P] Patent costs: | |
Costs incurred in connection with acquiring patent rights are charged to expense as incurred. | |
[Q] Benefit plan: | |
The Company maintains a retirement plan under Section 401(k) of the Internal Revenue Code, which covers all eligible employees. All employees with U.S. source income are eligible to participate in the plan immediately upon employment. The Company did not make any contributions to the plan during the years ended December 31, 2012, 2013 and 2014. | |
[R] Rent expense: | |
Expense related to the Company’s facilities leases is recorded on a straight-line basis over the respective lease terms. The difference between rent expense incurred and the amounts required to be paid in accordance with the lease term is recorded as deferred rent and is amortized over the lease term. | |
[S] Stock-based compensation: | |
The Company accounts for stock-based employee compensation for all share-based payments, including grants of stock options and restricted stock, as an operating expense based on their fair values on grant date. The Company recorded stock-based compensation expense of $1,154,000, $1,118,000 and $1,334,000 for the years ended December 31, 2012, 2013 and 2014, respectively. | |
The Company estimates the fair value of share-based option awards on the grant date using an option pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service period in the Company’s consolidated statement of operations. The Company estimates forfeitures at the time of grant in order to estimate the amount of share-based awards that will ultimately vest. The estimate is based on the Company’s historical rates of forfeitures. Estimated forfeitures are revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. | |
[T] Income taxes: | |
The Company uses the asset and liability method of accounting for deferred income taxes. Deferred income taxes are measured by applying enacted statutory rates to net operating loss carryforwards and to the differences between the financial reporting and tax bases of assets and liabilities. Deferred tax assets are reduced, if necessary, by a valuation allowance if it is more likely than not that some portion or all of the deferred tax assets will not be realized. | |
The Company recognizes uncertainty in income taxes in the financial statements using a recognition threshold and measurement attribute of a tax position taken or expected to be taken in a tax return. The Company applies the “more-likely-than-not” recognition threshold to all tax positions, commencing at the adoption date of the applicable accounting guidance, which resulted in no unrecognized tax benefits as of such date. Additionally, there have been no unrecognized tax benefits subsequent to adoption. The Company has opted to classify interest and penalties that would accrue according to the provisions of relevant tax law as selling, general, and administrative expenses, in the consolidated statement of operations. For the years ended December 31, 2012, 2013 and 2014, there was no such interest or penalty. | |
The Company files federal income tax returns and separate income tax returns in various states. For federal and certain states, the 2011 through 2014 tax years remain open for examination by the tax authorities under the normal three-year statute of limitations. For certain other states, the 2010 through 2014 tax years remain open for examination by the tax authorities under a four-year statute of limitations. | |
[U] Fair value of financial instruments: | |
Cash and cash equivalents and investments in securities are carried at fair value. The carrying value of financing receivables approximates fair value due to the interest rate implicit in the instruments approximating current market rates. The carrying value of accounts receivable, accounts payable and other liabilities approximates their fair values due to the short period to maturity of these instruments. | |
[V] Advertising and marketing expense: | |
Advertising and marketing costs are expensed as incurred. Advertising and marketing expense for the years ended December 31, 2012, 2013 and 2014 amounted to $317,000, $305,000 and $380,000, respectively. | |
[W] Commitments and contingencies: | |
Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. | |
[X] Recently issued accounting pronouncements: | |
In May 2014, the Financial Accounting Standards Board (“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 August 2014, the FASB issued Accounting Standards Update ("ASU") No. 2014-15, "Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern" ("ASU 2014-15"), to provide guidance on management’s responsibility to evaluate whether there is substantial doubt about a company’s ability to continue as a going concern within one year after the date that the financial statements are issued. ASU 2014-15 also provides guidance for related footnote disclosures. ASU 2014-15 is effective for the Company beginning on January 1, 2016 with early adoption permitted. The Company does not believe the impact of its pending adoption of this ASU on the Company's consolidated financial statements will be material. | |
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. | |
SIGNIFICANT_TRANSACTION_AVIS_B
SIGNIFICANT TRANSACTION - AVIS BUDGET GROUP, INC. | 12 Months Ended |
Dec. 31, 2014 | |
Significant Transactions [Abstract] | |
Significant Transactions Disclosure [Text Block] | NOTE 3 - 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” and, collectively with the Shares and the Warrant, the “Securities”). See Note 11(D) to the Consolidated Financial Statements for additional information. The Company issued the Shares in 2011 from treasury stock reflecting the cost of such shares on a specific identification basis. | |
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. The Company recognized $435,000, $1,080,000 and $1,110,000 of service revenue under these contracts for the years ended December 31, 2012, 2013 and 2014. | |
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 over the life of the contract 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 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 SOW#1. | |
In 2009, the Company entered into a contract for a pilot agreement with ABCR pursuant to which the Company’s rental fleet management system was implemented on 5,000 vehicles. Concurrent with the execution of SOW#1, the contract for the pilot program was terminated and the payment terms for the vehicle management systems implemented under the pilot program were incorporated into SOW#1. | |
Under the terms of SOW#1, the Company was entitled to issue sixty (60) monthly invoices of up to $286,100 for the 30,000 units delivered. 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. On December 9, 2014, the Company entered into an amendment (the “Amendment”) to the Master Agreement, pursuant to which ABCR’s obligation to make monthly hardware lease payments was converted into a one-time payment to the Company of approximately $5.4 million in cash. The Company recognized a loss of approximately $441,000 in the fourth quarter of 2014, reflecting a discount rate on the settlement of the finance receivable. The Company expects to continue providing maintenance services for the hardware, in accordance with and subject to the terms of the Master Agreement. | |
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 provides 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 which expired during 2013. | |
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. | |
INVESTMENTS_AND_FAIR_VALUE_MEA
INVESTMENTS AND FAIR VALUE MEASUREMENTS | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ||||||||||||||
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | NOTE 4 - INVESTMENTS AND FAIR VALUE MEASUREMENTS | |||||||||||||
The Company’s investments include debt securities, U.S. Treasury Notes, government and state agency bonds, mutual funds, corporate bonds, common stock 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 December 31, 2013 and 2014, all of the Company’s investments are classified as available of 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 years ended December 31, 2012, 2013 and 2014, the Company reported unrealized gain (loss) of $78,000, $(55,000) and $(13,000), 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, common stock 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 and common stock of $1,744,000, classified by the contractual maturity date of the security as of December 31, 2014: | ||||||||||||||
Fair Value | ||||||||||||||
Due within one year | $ | 1,505,000 | ||||||||||||
Due one year through three years | 3,642,000 | |||||||||||||
Due after three years | 424,000 | |||||||||||||
$ | 5,571,000 | |||||||||||||
The cost, gross unrealized gains (losses) and fair value of available for sale, held-to-maturity and trading by major security type at December 31, 2013 and 2014 were as follows: | ||||||||||||||
Unrealized | Unrealized | Fair | ||||||||||||
December 31, 2014 | Cost | Gain | Loss | Value | ||||||||||
Investments - short term | ||||||||||||||
Available for sale | ||||||||||||||
Mutual funds | $ | 1,706,000 | - | -36,000 | $ | 1,670,000 | ||||||||
Corporate bonds and commercial paper | 824,000 | 1,000 | - | 825,000 | ||||||||||
U.S. Treasury Notes | 680,000 | - | - | 680,000 | ||||||||||
Common stock | 49,000 | 25,000 | - | 74,000 | ||||||||||
Total investments - short term | 3,259,000 | 26,000 | -36,000 | 3,249,000 | ||||||||||
Marketable securities - long term | ||||||||||||||
Available for sale | ||||||||||||||
U.S. Treasury Notes | 2,165,000 | - | -3,000 | 2,162,000 | ||||||||||
Government agency bonds | 751,000 | - | -3,000 | 748,000 | ||||||||||
Corporate bonds and commercial paper | 1,155,000 | 1,000 | - | 1,156,000 | ||||||||||
Total investments - long term | 4,071,000 | 1,000 | -6,000 | 4,066,000 | ||||||||||
Total investments | $ | 7,330,000 | $ | 27,000 | $ | -42,000 | $ | 7,315,000 | ||||||
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 participant assumptions. | |||||||||||||
At December 31, 2014 and 2013, the Company’s investments described above are classified as Level 1 for fair value measurement. | ||||||||||||||
REVENUE_RECOGNITION
REVENUE RECOGNITION | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Deferred Revenue Disclosure [Abstract] | ||||||||
Deferred Revenue Disclosure [Text Block] | NOTE 5 - 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. Amounts invoiced to customers which are not recognized as revenue are classified as deferred revenue, and classified as short-term or long-term based upon the terms of future services to be delivered. | ||||||||
Deferred revenue consists of the following: | ||||||||
December 31, | ||||||||
2013 | 2014 | |||||||
Deferred activation fees | $ | 496,000 | $ | 532,000 | ||||
Deferred industrial equipment installation revenue | 258,000 | 1,985,000 | ||||||
Deferred maintenance revenue | 1,959,000 | 3,211,000 | ||||||
Deferred remote asset management product revenue | 8,466,000 | 8,943,000 | ||||||
11,179,000 | 14,671,000 | |||||||
Less: Current portion | 4,641,000 | 6,742,000 | ||||||
Deferred revenue - less current portion | $ | 6,538,000 | $ | 7,929,000 | ||||
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 2014, unbilled receivables were $-0- and $170,000, respectively. | ||||||||
During the years ended December 31, 2013 and 2014, the Company amortized deferred equipment revenue of $3,169,000 and $3,720,000, respectively, to product revenue | ||||||||
FINANCING_RECEIVABLES
FINANCING RECEIVABLES | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Receivables [Abstract] | ||||||||
Financing Receivables [TextBlock] | NOTE 6 - 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, | ||||||||
2013 | 2014 | |||||||
Notes receivable | $ | 53,000 | $ | 27,000 | ||||
Sales-type lease receivable | 14,253,000 | 5,943,000 | ||||||
Less: Allowance for uncollectable minimum lease payments | - | - | ||||||
14,306,000 | 5,970,000 | |||||||
Less: Current portion | ||||||||
Notes receivable | 25,000 | 25,000 | ||||||
Sales-type lease receivable | 4,026,000 | 1,873,000 | ||||||
4,051,000 | 1,898,000 | |||||||
Financing receivables - less current portion | $ | 10,255,000 | $ | 4,072,000 | ||||
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 Consolidated Statements of Cash Flows. Unearned interest income is amortized to interest income over the life of the notes using the effective-interest method. For the years ended December 31, 2013 and 2014, there were no sales of notes receivable. | ||||||||
On December 9, 2014, the Company entered into an agreement pursuant to which a finance receivable was converted into a one-time payment to the Company of approximately $5.4 million in cash. The Company recognized a loss of approximately $441,000 in the fourth quarter of 2014, reflecting a discount rate on the settlement of the finance receivable. See Note 3 to the Consolidated Financial Statements for additional information. | ||||||||
The present value of net investment in sales-type lease receivable is principally for three to five-year leases of the Company’s product and is reflected net of unearned income of $1,169,000 and $565,000 at December 31, 2013 and 2014, respectively, discounted at 1% - 26%. | ||||||||
Scheduled maturities of minimum lease payments outstanding as of December 31, 2014 are as follows: | ||||||||
Year ending December 31: | ||||||||
2015 | $ | 1,873,000 | ||||||
2016 | 1,690,000 | |||||||
2017 | 1,354,000 | |||||||
2018 | 799,000 | |||||||
2019 | 209,000 | |||||||
Thereafter | 18,000 | |||||||
5,943,000 | ||||||||
Less: Current portion | 1,873,000 | |||||||
Total | $ | 4,070,000 | ||||||
INVENTORIES
INVENTORIES | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventory Disclosure [Text Block] | NOTE 7 - INVENTORIES | |||||||
Inventories consist of the following: | ||||||||
December 31, | ||||||||
2013 | 2014 | |||||||
Components | $ | 2,968,000 | $ | 3,029,000 | ||||
Finished goods | 2,188,000 | 3,223,000 | ||||||
$ | 5,156,000 | $ | 6,252,000 | |||||
FIXED_ASSETS
FIXED ASSETS | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property, Plant and Equipment Disclosure [Text Block] | NOTE 8 - FIXED ASSETS | |||||||
Fixed assets are stated at cost, less accumulated depreciation and amortization, and at December 31, 2013 and 2014, are summarized as follows: | ||||||||
December 31, | ||||||||
2013 | 2014 | |||||||
Equipment | $ | 1,375,000 | $ | 1,480,000 | ||||
Computer software and website development | 3,319,000 | 3,470,000 | ||||||
Computer hardware | 2,565,000 | 2,717,000 | ||||||
Furniture and fixtures | 371,000 | 373,000 | ||||||
Automobiles | 47,000 | 47,000 | ||||||
Leasehold improvements | 181,000 | 181,000 | ||||||
7,858,000 | 8,268,000 | |||||||
Accumulated depreciation and amortization | -5,619,000 | -6,748,000 | ||||||
$ | 2,239,000 | $ | 1,520,000 | |||||
The Company had expenditures of approximately $480,000 and $63,000 for computer equipment and software which had not been placed in service as of December 31, 2013 and 2014, respectively. Depreciation and amortization expense is not recorded for such assets until they are placed in service. | ||||||||
Assets acquired under a capital lease at the end of 2013, net of accumulated amortization of $58,000, were $246,000 as of December 31, 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 for the year ended December 31, 2014 was $58,000. | ||||||||
Depreciation and amortization expense for the years ended December 31, 2012, 2013 and 2014 was $1,017,000, $1,005,000 and $1,129,000, respectively. This includes amortization of costs associated with computer software and website development for the years ended December 31, 2012, 2013 and 2014 of $576,000, $566,000 and $577,000, 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 VeriWise TM 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 $16,000 and $151,000 for such projects for the years ended December 31, 2013 and 2014, respectively. | ||||||||
INTANGIBLE_ASSETS_AND_GOODWILL
INTANGIBLE ASSETS AND GOODWILL | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||
Goodwill and Intangible Assets Disclosure [Text Block] | NOTE 9 - INTANGIBLE ASSETS AND GOODWILL | |||||||||||||
The following table summarizes identifiable intangible assets of the Company, which include identifiable intangible assets from the acquisition of Didbox 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 December 31, 2014: | ||||||||||||||
Useful | Gross | Net | ||||||||||||
Lives | Carrying | Accumulated | Carrying | |||||||||||
December 31, 2014 | (In Years) | Amount | Amortization | Amount | ||||||||||
Amortized: | ||||||||||||||
Patents | 11 | $ | 1,489,000 | $ | -677,000 | $ | 812,000 | |||||||
Tradename | 5 | 200,000 | -200,000 | - | ||||||||||
Non-competition agreement | 3 | 234,000 | -234,000 | - | ||||||||||
Technology | 5 | 50,000 | -50,000 | - | ||||||||||
Workforce | 5 | 33,000 | -33,000 | - | ||||||||||
Customer relationships | 5 | 4,499,000 | -4,499,000 | - | ||||||||||
6,505,000 | -5,693,000 | 812,000 | ||||||||||||
Unamortized: | ||||||||||||||
Customer list | 104,000 | - | 104,000 | |||||||||||
Trademark and Tradename | 61,000 | - | 61,000 | |||||||||||
165,000 | - | 165,000 | ||||||||||||
Total | $ | 6,670,000 | $ | -5,693,000 | $ | 977,000 | ||||||||
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 | ||||||||
The Company tests the goodwill and other intangible assets on an annual basis in the fourth quarter or more frequently if the Company believes indicators of impairment exist. At December 31, 2014, the Company determined that no impairment existed to the goodwill, customer list and trademark and trade name of its acquired intangibles. For the year ended December 31, 2013 the Company recorded a $74,000 impairment charge related to its PowerKey tradename and trademark intangible assets which is included in amortization expense. With the release of the Company’s next generation vehicle management systems platform, the VAC4, the Company made the strategic decision to discontinue offering the Powerkey product line for sale to new customers in 2014. As result, the Company wrote-off the PowerKey tradename and trademark intangible assets. | ||||||||||||||
The Company also determined that the use of indefinite lives for the customer list and remaining trademark and trade name remains applicable at December 31, 2014, as the Company expects to continue to derive future benefits from these intangible assets. | ||||||||||||||
Amortization expense for the years ended December 31, 2012, 2013 and 2014 was $1,169,000, $1,166,000 and $1,087,000 (including $74,000 impairment charge for the PowerKey tradename and trademark in 2013), respectively. Estimated future amortization expense for the succeeding five years for the intangible assets at December 31, 2014 is as follows: | ||||||||||||||
Year ending December 31: | ||||||||||||||
2015 | 135,000 | |||||||||||||
2016 | 135,000 | |||||||||||||
2017 | 135,000 | |||||||||||||
2018 | 135,000 | |||||||||||||
2019 | 135,000 | |||||||||||||
There have been no changes in the carrying amount of goodwill from January 1, 2013 to December 31, 2014. | ||||||||||||||
NET_LOSS_PER_SHARE
NET LOSS PER SHARE | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Earnings Per Share [Abstract] | |||||||||||
Earnings Per Share [Text Block] | NOTE 10 - NET LOSS PER SHARE | ||||||||||
December 31, | |||||||||||
Basic and diluted loss per share | 2012 | 2013 | 2014 | ||||||||
Net loss | $ | -2,592,000 | $ | -7,499,000 | $ | -11,575,000 | |||||
Weighted-average common shares outstanding - basic and diluted | 11,744,000 | 11,912,000 | 12,098,000 | ||||||||
Net loss per share - basic and diluted | $ | -0.22 | $ | -0.63 | $ | -0.96 | |||||
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 share awards. For the years ended December 31, 2012, 2013 and 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 3,095,000, 3,124,000 and 2,943,000, respectively, would have been anti-dilutive. The SOW#2 warrants also have no impact on diluted loss per share since they are considered unissued as of December 31, 2014. | |||||||||||
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 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 | ||||||||||||||||||||||
[A] Stock options: | |||||||||||||||||||||||
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 expired during 2005 and the 1999 Stock and Director Option Plans expired during 2009 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 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 (the “Compensation Committee”), 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. | |||||||||||||||||||||||
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 from March 2, 2014, the date of the Former CEO’s separation. 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 in the second quarter of 2014 which is included in the stock option stock-based compensation expense. | |||||||||||||||||||||||
A summary of the status of the Company’s stock options as of December 31, 2012, 2013 and 2014 and changes during the years then ended, is presented below: | |||||||||||||||||||||||
2012 | 2013 | 2014 | |||||||||||||||||||||
Weighted - | Weighted - | Weighted - | |||||||||||||||||||||
Average | Average | Average | |||||||||||||||||||||
Number of | Exercise | Number of | Exercise | Number of | Exercise | ||||||||||||||||||
Shares | Price | Shares | Price | Shares | Price | ||||||||||||||||||
Outstanding at beginning of year | 2,462,000 | $ | 7.41 | 2,568,000 | $ | 7.33 | 2,790,000 | $ | 7.25 | ||||||||||||||
Granted | 272,000 | 5.93 | 367,000 | 5.63 | 290,000 | 5.54 | |||||||||||||||||
Exercised | -56,000 | 3.85 | -67,000 | 3.4 | -126,000 | 3.65 | |||||||||||||||||
Expired | - | - | -25,000 | 5.89 | -383,000 | 6.88 | |||||||||||||||||
Forfeited | -110,000 | 7.56 | -53,000 | 5.13 | -362,000 | 10.03 | |||||||||||||||||
Outstanding at end of year | 2,568,000 | $ | 7.33 | 2,790,000 | $ | 7.25 | 2,209,000 | $ | 6.84 | ||||||||||||||
Exercisable at end of year | 1,649,000 | $ | 9.06 | 1,964,000 | $ | 8.12 | 1,620,000 | $ | 7.31 | ||||||||||||||
The following table summarizes information about stock options at December 31, 2014: | |||||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||||
Weighted - | |||||||||||||||||||||||
Average | Weighted - | Weighted - | |||||||||||||||||||||
Remaining | Average | Aggregate | Average | Aggregate | |||||||||||||||||||
Exercise | Number | Contractual | Exercise | Intrinsic | Number | Exercise | Intrinsic | ||||||||||||||||
Prices ($) | Outstanding | Life | Price | Value | Outstanding | Price | Value | ||||||||||||||||
1.97 - 3.81 | 626,000 | 5 years | $ | 3.18 | 595,000 | $ | 3.18 | ||||||||||||||||
3.82 - 7.40 | 1,031,000 | 8 years | 5.48 | 473,000 | 5.26 | ||||||||||||||||||
7.41 - 14.15 | 408,000 | 1 years | 10.65 | 408,000 | 10.65 | ||||||||||||||||||
14.16 - 19.94 | 13,000 | 1 years | 17.07 | 13,000 | 17.07 | ||||||||||||||||||
19.95 - 25.38 | 131,000 | 1 years | 21.97 | 131,000 | 21.97 | ||||||||||||||||||
2,209,000 | 5 years | $ | 6.84 | $ | 3,440,000 | 1,620,000 | $ | 7.31 | $ | 2,764,000 | |||||||||||||
Weighted- | |||||||||||||||||||||||
Weighted- | Average | ||||||||||||||||||||||
Average | Aggregate | Remaining | |||||||||||||||||||||
Number | Exercise | Intrinsic | Contractual | ||||||||||||||||||||
Outstanding | Price | Value | Life | ||||||||||||||||||||
Options exercisable at December 31, 2014 | 1,620,000 | $ | 7.31 | $ | 2,764,000 | 3.95 | |||||||||||||||||
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: | |||||||||||||||||||||||
December 31, | |||||||||||||||||||||||
2012 | 2013 | 2014 | |||||||||||||||||||||
Expected volatility | 44.98 | % | 47.34 | % | 44.4 | % | |||||||||||||||||
Expected life of options | 3.0 - 5.0 years | 4.0 - 5.0 years | 3.0 - 4.0 years | ||||||||||||||||||||
Risk free interest rate | 0.5 | % | 0.6 | % | 1.2 | % | |||||||||||||||||
Dividend yield | 0 | % | 0 | % | 0 | % | |||||||||||||||||
Weighted-average fair value of options granted during the year | $ | 1.86 | $ | 2.17 | $ | 1.91 | |||||||||||||||||
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. | |||||||||||||||||||||||
For the years ended December 31, 2012, 2013 and 2014, the Company recorded $614,000, $579,000 and $540,000, respectively, of stock-based compensation expense in connection with the stock option grants. The total intrinsic value of options exercised during the years ended December 31, 2012, 2013 and 2014 was $83,000, $209,000 and $276,000, respectively. | |||||||||||||||||||||||
The fair value of options vested during the years ended December 31, 2012, 2013 and 2014 was $657,000, $633,000 and $712,000, respectively. As of December 31, 2014, there was $810,000 of total unrecognized compensation costs 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 3.01 years. | |||||||||||||||||||||||
[B] Restricted Stock Awards: | |||||||||||||||||||||||
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 at the time of grant and, upon vesting, there are no legal restrictions on the stock. The fair value of each share is based on the Company’s closing stock price on the date of the grant. A summary of the non-vested shares for the years ended December 31, 2012, 2013 and 2014 is as follows: | |||||||||||||||||||||||
Weighted - | |||||||||||||||||||||||
Average | |||||||||||||||||||||||
Number of | Grant | ||||||||||||||||||||||
Non-vested | Date | ||||||||||||||||||||||
Shares | Fair Value | ||||||||||||||||||||||
Non-vested at January 1, 2012 | 361,000 | $ | 3.34 | ||||||||||||||||||||
Granted | 75,000 | 5.93 | |||||||||||||||||||||
Vested | -143,000 | 3.79 | |||||||||||||||||||||
Forfeited | - | - | |||||||||||||||||||||
Non-vested at December 31, 2012 | 293,000 | $ | 3.79 | ||||||||||||||||||||
Granted | 101,000 | 5.67 | |||||||||||||||||||||
Vested | -183,000 | 3.35 | |||||||||||||||||||||
Forfeited | -11,000 | 4.92 | |||||||||||||||||||||
Non-vested at December 31, 2013 | 200,000 | $ | 5.08 | ||||||||||||||||||||
Granted | 608,000 | 5.68 | |||||||||||||||||||||
Vested | -99,000 | 5.06 | |||||||||||||||||||||
Forfeited | -93,000 | 5.02 | |||||||||||||||||||||
Non-vested at December 31, 2014 | 616,000 | $ | 5.69 | ||||||||||||||||||||
For the years ended December 31, 2012, 2013 and 2014, the Company recorded $510,000, $527,000 and $787,000 respectively, of stock-based compensation expense in connection with the restricted stock grants. As of December 31, 2014, there was $2,592,000 of total unrecognized compensation cost related to non-vested shares. That cost is expected to be recognized over a weighted-average period of 2.97 years. | |||||||||||||||||||||||
[C] Performance Shares: | |||||||||||||||||||||||
The Company grants performance shares to certain 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 years ended December 31, 2012, 2013 and 2014 was insignificant. | |||||||||||||||||||||||
The following table summarizes the activity relating to the Company’s performance shares for the years ended December 31, 2012, 2013 and 2014: | |||||||||||||||||||||||
Non-vested | |||||||||||||||||||||||
Shares | |||||||||||||||||||||||
Performance shares, non-vested, January 1, 2012 | 327,000 | ||||||||||||||||||||||
Granted | 40,000 | ||||||||||||||||||||||
Vested | - | ||||||||||||||||||||||
Forfeited | -233,000 | ||||||||||||||||||||||
Performance shares, non-vested, December 31, 2012 | 134,000 | ||||||||||||||||||||||
Granted | - | ||||||||||||||||||||||
Vested | - | ||||||||||||||||||||||
Forfeited | -100,000 | ||||||||||||||||||||||
Performance shares, non-vested, December 31, 2013 | 34,000 | ||||||||||||||||||||||
Granted | - | ||||||||||||||||||||||
Vested | - | ||||||||||||||||||||||
Forfeited | -16,000 | ||||||||||||||||||||||
Performance shares, non-vested, December 31, 2014 | 18,000 | ||||||||||||||||||||||
[D] 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 shares of common stock, at any time after the Effective Date and on or before the fifth (5th) anniversary thereof, and (ii) with respect to 500,000 shares of common stock, 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 3 to the 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 December 31, 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 December 31, 2014, the Company has sufficient shares reserved. | |||||||||||||||||||||||
The 100,000 Warrant Shares which vested on the Effective Date were valued at $137,000 based on a Black-Scholes pricing model and was recorded as reduction of product revenue pursuant to the applicable accounting guidance during 2011. The Company has determined that the Warrants should be accounted for as an equity instrument. | |||||||||||||||||||||||
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. | |||||||||||||||||||||||
ACCOUNTS_PAYABLE_AND_ACCRUED_E
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Accounts Payable and Accrued Liabilities, Current [Abstract] | ||||||||
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | NOTE 12 - ACCOUNTS PAYABLE AND ACCRUED EXPENSES | |||||||
Accounts payable and accrued expenses consist of the following: | ||||||||
December 31, | ||||||||
2013 | 2014 | |||||||
Accounts payable | $ | 5,303,000 | $ | 7,190,000 | ||||
Accrued warranty | 522,000 | 942,000 | ||||||
Accrued severance | 100,000 | 180,000 | ||||||
Accrued compensation | 172,000 | 1,360,000 | ||||||
Other current liabilities | 167,000 | 430,000 | ||||||
$ | 6,264,000 | $ | 10,102,000 | |||||
Included in accounts payable and accrued expenses at December 31, 2014 is accrued severance of $180,000 to the Former CEO. The accrued severance is payable in equal monthly installments of approximately $20,000. | ||||||||
Included in accounts payable and accrued expenses at December 31, 2013 is accrued severance of $100,000 to the Company’s former Chief Operating Officer. The accrued severance is payable in equal monthly installments of approximately $17,000. | ||||||||
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 Consolidated Balance Sheets as of December 31, 2013 and 2014. | ||||||||
The following table summarizes warranty activity during the years ended December 31, 2013 and 2014: | ||||||||
Year Ended | ||||||||
2013 | 2014 | |||||||
Accrued warranty reserve, beginning of year | $ | 520,000 | $ | 522,000 | ||||
Accrual for product warranties issued | 383,000 | 837,000 | ||||||
Product replacements and other warranty expenditures | -233,000 | -218,000 | ||||||
Expiration of warranties | -148,000 | -199,000 | ||||||
Accrued warranty reserve, end of period | $ | 522,000 | $ | 942,000 | ||||
CAPITAL_LEASE_OBLIGATION
CAPITAL LEASE OBLIGATION | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Leases, Capital [Abstract] | |||||
Capital Leases in Financial Statements of Lessee Disclosure [Text Block] | NOTE 13- CAPITAL LEASE OBLIGATION | ||||
In September 2013, the Company acquired certain computer equipment pursuant to a capital lease obligation. Under the lease agreement, during the term which expires in December 2015, the Company is required to make monthly payments of approximately $14,000, including interest at an annual rate of 12.82% | |||||
Annual minimum lease payments under capital lease obligations are as follows: | |||||
Year ending December 31: | |||||
2015 | 159,000 | ||||
Less: amount representing interest | -10,000 | ||||
Total | $ | 149,000 | |||
CONCENTRATION_OF_CUSTOMERS
CONCENTRATION OF CUSTOMERS | 12 Months Ended |
Dec. 31, 2014 | |
Risks and Uncertainties [Abstract] | |
Concentration Risk Disclosure [Text Block] | NOTE 14 - CONCENTRATION OF CUSTOMERS |
Two customers accounted for 16% and 14% of the Company’s revenue during the year ended and as of December 31, 2014 and one of the customers and an additional customer accounted for 14% and 10%, respectively, of the Company’s accounts receivable as of December 31, 2014. No customer accounted for 10% or greater of finance receivables as of December 31, 2014. | |
Two customers accounted for 18% and 10% of the Company’s revenue during the year ended and as of December 31, 2013 and one of the customers accounted for 10% of the Company’s accounts receivable as of December 31, 2013. One customer accounted for 54% of finance receivables as of December 31, 2013. | |
One customer accounted for 18% of the Company’s revenue, 14% of the Company’s accounts receivable and 70% of notes and sales-type lease receivables during the year ended and as of December 31, 2012. An additional customer accounted for 15% of the Company’s revenue and 12% of the Company’s accounts receivable during the year ended and as of December 31, 2012. | |
STOCKHOLDERS_EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2014 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE 15 - STOCKHOLDERS’ EQUITY |
[A] Preferred stock: | |
The Company is authorized to issue 5,000,000 shares of preferred stock, par value $0.01 per share. The Company’s Board of Directors has the authority to issue shares of preferred stock and to determine the price and terms of those shares. No shares of preferred stock are issued and outstanding. | |
[B] 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 year ended December 31, 2014. As of December 31, 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. | |
[C] Shares withheld: | |
During the year ended December 31, 2014, 25,000 shares 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 $144,000. | |
During the year ended December 31, 2013, 49,000 shares 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 $265,000. | |
During the year ended December 31, 2012, 18,000 shares 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 $100,000. | |
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||
Comprehensive Income (Loss) Note [Text Block] | NOTE 16 - ACCUMULATED OTHER COMPREHENSIVE INCOME (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 Consolidated Balance Sheets. | |||||||||||
The accumulated balances for each classification of other comprehensive loss are as follows: | |||||||||||
Unrealized | Accumulated | ||||||||||
Foreign | gain (losses) | other | |||||||||
currency | on | comprehensive | |||||||||
items | investments | income | |||||||||
Balance at January 1, 2012 | $ | -26,000 | $ | -23,000 | $ | -49,000 | |||||
Net current period change | 6,000 | 96,000 | 102,000 | ||||||||
Balance at December 31, 2012 | -20,000 | $ | 73,000 | $ | 53,000 | ||||||
Net current period change | -77,000 | -82,000 | -159,000 | ||||||||
Balance at December 31, 2013 | -97,000 | $ | -9,000 | $ | -106,000 | ||||||
Net current period change | -263,000 | -6,000 | -269,000 | ||||||||
Balance at December 31, 2014 | $ | -360 | $ | -15,000 | -375,000 | ||||||
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 or loss in consolidated stockholders’ equity. Net translation gains or losses resulting from the translation of foreign currency financial statements and the effect of exchange rate changes on intercompany transactions of a long-term investment nature with the Gmbh resulted in a translation (losses) gains of $6,000, $(77,000) and $(263,000) at December 31, 2012, 2013 and 2014, respectively, which are included in comprehensive loss in the Consolidated Statement of Changes in Stockholders’ Equity. | |||||||||||
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Income Tax Disclosure [Abstract] | |||||||||||
Income Tax Disclosure [Text Block] | NOTE 17 - INCOME TAXES | ||||||||||
At December 31, 2014, the Company had an aggregate net operating loss carryforward of approximately $56,790,000 for U.S. federal income tax purposes, of which $7,847,000 relates to stock options for which there were no compensation charges for financial reporting. Accordingly, any future tax benefit upon utilization of that net operating loss would be credited to additional paid-in capital. The Company has not included this amount in deferred tax assets. At December 31, 2014, the Company had an aggregate net operating loss carryforward of approximately $22,084,000 for state income tax purposes and a foreign net operating loss carryforward of approximately $1,534,000. Substantially all of the net operating loss carryforwards expire from 2020 through 2034 for federal purposes and from 2016 through 2034 for state purposes. The net operating loss carryforwards may be limited to use in any particular year based on Internal Revenue Code (“IRC”) Section 382 related to change of ownership restrictions. Section 382 of the IRC imposes an annual limitation on the utilization of NOL carryforwards based on long-term bond rates and the value of the corporation at the time of a change in ownership as defined by Section 382 of the IRC. In addition, future stock issuances may subject the Company to further limitations on the utilization of its net operating loss carryforwards under the same Internal Revenue Code provision. | |||||||||||
The Company has incurred research and development (“R&D”) expenses, a portion of which may qualify for R&D tax credits. The Company has not conducted an R&D credit study to quantify the amount of the credit and has not claimed any R&D tax credit on its Federal income tax returns. The Company may conduct such a study in future years and may establish the R&D credit carryforward for prior years. In such an event, the net operating loss carryforward for Federal income tax purposes would be correspondingly reduced by the amount of the credit. | |||||||||||
We have New Jersey net operating loss carryforwards (“NJ NOLs”) in the approximate amount of $12,037,000 expiring through 2034, which are available to reduce future earnings which would otherwise be subject to state income tax. As of December 31, 2013, the Company received approval for the sale of approximately $10.3 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. | |||||||||||
The Company has net deferred tax assets of approximately $21,536,000 and $25,318,000 at December 31, 2013 and 2014, respectively. The increase in the deferred tax asset is primarily attributable to the net operating losses, partially offset by the sale of the NJ net operating losses in 2013. The Company had other temporary differences between financial and tax reporting for stock-based compensation, fixed asset depreciation expense, deferred revenue, deferred expenses, bad debt reserves, inventory reserves, warranty reserves and acquisition-related expenses. | |||||||||||
The Company has elected to use the incremental approach for financial statement purposes. Under this approach, the Company will utilize net operating loss carryforwards before utilizing excess benefit from exercise of options during the current year. The Company has provided a valuation allowance against the full amount of its deferred tax asset, net of the benefit expected to be derived from the sale of the NJ NOLs discussed above. The valuation allowance was established because of the uncertainty of realization of the deferred tax assets due to lack of sufficient history of generating taxable income. Realization is dependent upon generating sufficient taxable income prior to the expiration of the net operating loss carryforwards in future periods. The valuation allowance (decreased) increased in 2012, 2013 and 2014 by $(580,000), $2,344,000 and $3,845,000, respectively. | |||||||||||
Loss before income taxes consists of the following: | |||||||||||
Year Ended December 31, | |||||||||||
2012 | 2013 | 2014 | |||||||||
U.S. operations | $ | -2,736,000 | $ | -7,140,000 | $ | -11,650,000 | |||||
Foreign operations | -518,000 | -422,000 | 75,000 | ||||||||
$ | -3,254,000 | $ | -7,562,000 | $ | -11,575,000 | ||||||
The difference between income taxes at the statutory federal income tax rate and income taxes reported in the Consolidated Statements of Operations is attributable to the following: | |||||||||||
Year Ended December 31, | |||||||||||
2012 | 2013 | 2014 | |||||||||
Income tax benefit at the federal statutory rate | $ | -1,106,000 | $ | -2,550,000 | $ | -3,936,000 | |||||
State and local income taxes, net of effect on federal taxes | -256,000 | -646,000 | -919,000 | ||||||||
Increase (decrease) in valuation allowance | -580,000 | 2,440,000 | 3,845,000 | ||||||||
ISO grants and restricted shares | 224,000 | 223,000 | 331,000 | ||||||||
Expiration and adjustment on sale of state net operating loss | 428,000 | 452,000 | 564,000 | ||||||||
Permanent differences and other | 628,000 | 18,000 | 115,000 | ||||||||
$ | -662,000 | $ | -63,000 | $ | - | ||||||
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2013 and 2014 are presented below: | |||||||||||
December 31, | |||||||||||
2013 | 2014 | ||||||||||
Deferred tax assets: | |||||||||||
Net operating loss carryforwards | $ | 15,065,000 | $ | 18,245,000 | |||||||
Stock-based compensation | 1,386,000 | 1,350,000 | |||||||||
Deferred revenue | 4,048,000 | 4,349,000 | |||||||||
Intangibles, amortization | 1,058,000 | 1,292,000 | |||||||||
Inventories | 1,076,000 | 780,000 | |||||||||
Acquisition related expenses | 418,000 | 380,000 | |||||||||
Bad debt reserve | - | 590,000 | |||||||||
Other deductible temporary differences | 814,000 | 648,000 | |||||||||
Total gross deferred tax assets | 23,865,000 | 27,634,000 | |||||||||
Less: Valuation allowance | -21,473,000 | -25,318,000 | |||||||||
2,392,000 | 2,316,000 | ||||||||||
Deferred tax liabilities: | |||||||||||
Deferred expenses | -2,093,000 | -2,299,000 | |||||||||
Fixed assets, depreciation | -236,000 | -17,000 | |||||||||
-2,329,000 | -2,316,000 | ||||||||||
Net deferred tax assets | $ | 63,000 | $ | - | |||||||
WHOLLY_OWNED_FOREIGN_SUBSIDIAR
WHOLLY OWNED FOREIGN SUBSIDIARIES | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Wholly Owned Foreign Subsidiaries [Abstract] | |||||||||||
Wholly Owned Foreign Subsidiaries [Text Block] | NOTE 18 - 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 the IDS GmbH included in the Consolidated Statement of Operations are as follows: | |||||||||||
Year Ended December 31, | |||||||||||
2012 | 2013 | 2014 | |||||||||
Net revenue | $ | 1,198,000 | $ | 1,128,000 | $ | 4,194,000 | |||||
Net (loss) income | -420,000 | -395,000 | 618,000 | ||||||||
Total assets of IDS GmbH were $1,701,000 and $4,235,000 as of December 31, 2013 and 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 consolidated statement of operations are as follows: | |||||||||||
Year Ended December 31, | |||||||||||
2012 | 2013 | 2014 | |||||||||
Net revenue | $ | 1,133,000 | $ | 1,643,000 | $ | 380,000 | |||||
Net loss | -98,000 | -27,000 | -543,000 | ||||||||
Total assets of IDS Ltd were $2,200,000 and $1,937,000 as of December 31, 2013 and 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 transaction (losses) gains for the years ended December 31, 2012, 2013 and 2014 of $(15,000), $37,000 and $(56,000), respectively, are included in selling, general and administrative expenses in the Consolidated Statement of Operations. | |||||||||||
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Commitments and Contingencies Disclosure [Text Block] | NOTE 19 - COMMITMENTS AND CONTINGENCIES | ||||
Except for normal operating leases, the Company is not currently subject to any material commitments. | |||||
[A] Contingencies: | |||||
The Company is not currently subject to any material commitments and legal proceedings, nor, to management’s knowledge, is any material legal proceeding threatened against the Company. | |||||
[B] 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, 15 or 18 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) 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 from March 2, 2014, the date of the Former CEO’s separation from the Company. 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. | |||||
[C] Operating leases: | |||||
The office leases for the Company’s executive offices in Woodcliff Lake, New Jersey and sales and administrative office in Plano, Texas, which expire in February 2021 and September 2015, respectively, also provide for escalations relating to increases in real estate taxes and certain operating expenses. In addition, the Company leases sales and administrative offices in Milton Keynes, United Kingdom and Dusseldorf, Germany. The Company’s operating leases provide for minimum annual rental payments as follows: | |||||
Year Ending | |||||
December 31, | |||||
2015 | 625,000 | ||||
2016 | 476,000 | ||||
2017 | 484,000 | ||||
2018 | 496,000 | ||||
2019 | 496,000 | ||||
Thereafter | 578,000 | ||||
$ | 3,155,000 | ||||
Minimum rent payments under operating leases are recognized on a straight-line basis over the term of the lease including any periods of free rent. Rental expense for operating leases was approximately $900,000, $840,000 and $805,000 for the years ended December 31, 2012, 2013 and 2014, respectively. | |||||
The Company is currently negotiating the terms of a new lease for approximately 11,482 square feet of administrative office space in Plano, Texas, the term of which would commence upon the expiration of the term of the existing sublease; however, there can be no assurance that the new lease will be entered into on terms favorable to the Company, if at all. | |||||
QUARTERLY_SELECTED_FINANCIAL_D
QUARTERLY SELECTED FINANCIAL DATA (UNAUDITED) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Quarterly Financial Data [Abstract] | ||||||||||||||
Quarterly Financial Information [Text Block] | NOTE 20 - QUARTERLY SELECTED FINANCIAL DATA (UNAUDITED) | |||||||||||||
The following tables contain selected quarterly financial data for each quarter for the years ended December 31, 2013 and 2014. We believe the following information reflects all normal recurring adjustments necessary for a fair presentation of the information for the periods presented. The operating results for any period are not necessarily indicative of results for any future periods. | ||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||
1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | |||||||||||
Revenues: | ||||||||||||||
Products | $ | 5,790,000 | $ | 7,161,000 | $ | 7,292,000 | $ | 8,160,000 | ||||||
Services | 3,946,000 | 4,252,000 | 4,447,000 | 4,585,000 | ||||||||||
9,736,000 | 11,413,000 | 11,739,000 | 12,745,000 | |||||||||||
Cost of revenues: | ||||||||||||||
Cost of products | 3,302,000 | 4,769,000 | 4,653,000 | 6,734,000 | ||||||||||
Cost of services | 1,450,000 | 1,520,000 | 1,615,000 | 1,584,000 | ||||||||||
4,752,000 | 6,289,000 | 6,268,000 | 8,318,000 | |||||||||||
Gross Profit | 4,984,000 | 5,124,000 | 5,471,000 | 4,427,000 | ||||||||||
Selling, general and administrative expenses | 6,820,000 | 5,651,000 | 6,289,000 | 6,334,000 | ||||||||||
Research and development expenses | 1,150,000 | 1,343,000 | 1,770,000 | 2,386,000 | ||||||||||
Loss on settlement of finance receivable | - | - | - | -441,000 | ||||||||||
Other income, net | 155,000 | 165,000 | 144,000 | 139,000 | ||||||||||
Net loss | $ | -2,831,000 | $ | -1,705,000 | $ | -2,444,000 | $ | -4,595,000 | ||||||
Net loss per share - basic and diluted | $ | -0.24 | $ | -0.14 | $ | -0.2 | $ | -0.38 | ||||||
Year Ended December 31, 2013 | ||||||||||||||
1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | |||||||||||
Revenues: | ||||||||||||||
Products | $ | 3,775,000 | $ | 5,303,000 | $ | 6,966,000 | $ | 7,096,000 | ||||||
Services | 4,239,000 | 4,067,000 | 4,239,000 | 4,261,000 | ||||||||||
8,014,000 | 9,370,000 | 11,205,000 | 11,357,000 | |||||||||||
Cost of revenues: | ||||||||||||||
Cost of products | 2,694,000 | 3,005,000 | 3,853,000 | 6,362,000 | ||||||||||
Cost of services | 1,484,000 | 1,515,000 | 1,535,000 | 1,588,000 | ||||||||||
4,178,000 | 4,520,000 | 5,388,000 | 7,950,000 | |||||||||||
Gross Profit | 3,836,000 | 4,850,000 | 5,817,000 | 3,407,000 | ||||||||||
Selling, general and administrative expenses | 5,516,000 | 5,595,000 | 4,981,000 | 5,677,000 | ||||||||||
Research and development expenses | 1,140,000 | 1,123,000 | 1,082,000 | 1,044,000 | ||||||||||
Other income, net | 198,000 | 161,000 | 170,000 | 157,000 | ||||||||||
Net loss before income tax benefit | -2,622,000 | -1,707,000 | -76,000 | -3,157,000 | ||||||||||
Income tax benefit - sale of NJ net operating losses | - | 63,000 | ||||||||||||
Net loss | $ | -2,622,000 | $ | -1,707,000 | $ | -76,000 | $ | -3,094,000 | ||||||
Net loss per share - basic and diluted | $ | -0.22 | $ | -0.14 | $ | -0.01 | $ | -0.26 | ||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | [A] Principles of consolidation: |
The 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”) (which, as noted above, are collectively referred to herein as the “Company”). All material intercompany balances and transactions have been eliminated in consolidation. | |
Use of Estimates, Policy [Policy Text Block] | [B] Use of estimates: |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“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. | |
Cash and Cash Equivalents, Policy [Policy Text Block] | [C] Cash and cash equivalents: |
The Company considers all highly liquid debt instruments with an original maturity of three months or less when purchased to be cash equivalents unless they are legally or contractually restricted. The Company’s cash and cash equivalent balances generally exceed FDIC limits. | |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | [D] Restricted cash: |
Restricted cash at December 31, 2013 and 2014 consists of cash held in escrow for purchases from a vendor. | |
Investment, Policy [Policy Text Block] | [E] Investments: |
The Company’s investments include debt securities, U.S. Treasury Notes, government and state agency bonds, mutual funds, corporate bonds, common stock 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. 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). The Company has classified as short-term those securities that mature within one year, mutual funds and common stock, and all other securities are classified as long-term. Realized gains and losses from the sale of available for sale securities are determined on a specific-identification basis. Net realized gains and losses from the sale of investment securities available for sale are included in “other income” in the consolidated statement of operations. Dividend and interest income are recognized when earned. | |
Trade and Other Accounts Receivable, Policy [Policy Text Block] | [F] Accounts receivable: |
Accounts receivable are recorded at the invoiced amount and do not bear interest. Amounts collected on trade accounts receivable are included in net cash provided by operating activities in the consolidated statements of cash flows. The Company maintains reserves against its accounts receivable for potential losses. Allowances for uncollectible accounts are estimated based on the Company’s periodic review of accounts receivable balances. In establishing the required allowance, management considers our customers’ financial condition, the amount of receivables in dispute, and the current receivables aging and current payment patterns. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. Accounts receivable are net of an allowance for doubtful accounts in the amount of $955,000 and $1,434,000 in 2013 and 2014, respectively. The Company does not have any off-balance sheet credit exposure related to its customers. | |
Finance, Loans and Leases Receivable, Policy [Policy Text Block] | [G] Financing receivables: |
Financing receivables include notes and sales-type lease receivables from the sale of the Company’s products and services. Notes receivable relate to interest-bearing product financing arrangements that exceed one year and are recorded at face value. Interest income is recognized over the life of the note. Amounts collected on notes receivable are included in net cash provided by operating activities in the consolidated statements of cash flows. Unearned income is amortized to interest income over the life of the notes using the effective-interest method. | |
The Company also derives revenue under leasing arrangements. 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 future minimum lease payments. Interest income is recognized monthly over the lease term using the effective-interest method. | |
The allowance for uncollectable minimum lease payments 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 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 our 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 years ended December 31, 2012, 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/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/lease. Notes and leases become past due based on how recently payments have been received. | |
Revenue Recognition, Policy [Policy Text Block] | [H] 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, software, and hosting infrastructure. 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 fair value of the element. VSOE of the fair value 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 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. | |
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 consolidated statements of operations. | |
Deferred Charges, Policy [Policy Text Block] | [I] Deferred costs: |
Deferred product costs consist of transportation asset management equipment costs deferred in accordance with our revenue recognition policy. The Company will continue to evaluate the realizability of the carrying amount of the deferred contract costs on a quarterly basis. To the extent the carrying value of the deferred contract costs exceed the contract revenue, an impairment loss will be recognized. | |
Inventory, Policy [Policy Text Block] | [J] 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. | |
Inventory valuation reserves are established in order to report inventories at the lower of cost or market value in the consolidated balance sheet. The determination of inventory valuation reserves requires management to make estimates and judgments on the future salability of inventories. Valuation reserves for obsolete and slow-moving inventory are estimated based on assumptions of future sales forecasts, product life cycle expectations, the impact of new product introductions, production requirements, and specific identification of items, such as product discontinuance or engineering/material changes and by comparing the inventory levels to historical usage rates. | |
In December 2013, as part of a strategic review and in response to engineering releases of new products and/or new components, the Company evaluated its product life cycle expectations as it relates to inventory on hand as of December 31, 2013. With the release of the Company’s next generation vehicle management systems vehicle platform, the VAC4, and the expansion of the Company’s product line of over-the-road asset management solutions, the Company made the strategic decision to discontinue offering the Powerkey and prior models of the satellite intermodal and rail product lines for sale to new customers in 2014. As a result of the strategic review of its products line, the Company recorded a $2,066,000 inventory reserve in December 2013. | |
Property, Plant and Equipment, Policy [Policy Text Block] | [K] Fixed assets and depreciation: |
Fixed assets are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the assets, which range from three to ten years. Leasehold improvements are amortized using the straight-line method over the terms of the respective leases, or their estimated useful lives, whichever is shorter. For website development costs, the Company capitalizes costs incurred during the application development stage. Costs related to preliminary project activities and post-implementation activities are expensed as incurred. Internal-use software is amortized on a straight-line basis over its estimated useful life, generally three years. | |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | [L] Long-lived assets: |
Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the assets to the future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets and would be charged to earnings. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. For the years ended December 31, 2012 and 2014, the Company has not incurred an impairment charge. For the year ended December 31, 2013 the Company recorded a $74,000 impairment charge related to its PowerKey tradename and trademark intangible assets which is included in amortization expense. With the release of the Company’s next generation vehicle management systems platform, the VAC4, the Company made the strategic decision to discontinue offering the Powerkey product line for sale to new customers in 2014. As result, the Company wrote-off the PowerKey tradename and trademark intangible assets in 2013. | |
Goodwill and Intangible Assets, Policy [Policy Text Block] | [M] Goodwill and other intangible assets: |
Goodwill represents costs in excess of fair values assigned to the underlying net assets of acquired businesses. Goodwill and intangible assets deemed to have indefinite lives are not amortized. Intangible assets other than goodwill are amortized over their useful lives unless the lives are determined to be indefinite. Intangible assets are carried at cost, less accumulated amortization. Intangible assets consist of trademarks and trade name, patents, customer relationships and other intangible assets. The Company tests goodwill and other intangible assets annually, or when a triggering event occurs between annual impairment tests, to determine if impairment exists and if the use of indefinite lives is currently applicable. For purposes of the goodwill impairment test, the Company’s product lines are aggregated within one reporting unit. For the years ended December 31, 2012, 2013 and 2014, the Company has not incurred an impairment charge. | |
Standard Product Warranty, Policy [Policy Text Block] | [N] Product warranties: |
The Company provides a one-year warranty on its products. Estimated future warranty costs are accrued in the period that the related revenue is recognized. These estimates are derived from historical data and trends of product reliability and costs of repairing and replacing defective products. | |
Research and Development Expense, Policy [Policy Text Block] | [O] Research and development: |
Research and development costs are charged to expense as incurred. Research and development costs were $4,341,000, $4,389,000 and $6,649,000 in 2012, 2013 and 2014, respectively. | |
Patents Costs [Policy Text Block] | [P] Patent costs: |
Costs incurred in connection with acquiring patent rights are charged to expense as incurred. | |
Compensation and Employee Benefit Plans [Text Block] | [Q] Benefit plan: |
The Company maintains a retirement plan under Section 401(k) of the Internal Revenue Code, which covers all eligible employees. All employees with U.S. source income are eligible to participate in the plan immediately upon employment. The Company did not make any contributions to the plan during the years ended December 31, 2012, 2013 and 2014. | |
Lease, Policy [Policy Text Block] | [R] Rent expense: |
Expense related to the Company’s facilities leases is recorded on a straight-line basis over the respective lease terms. The difference between rent expense incurred and the amounts required to be paid in accordance with the lease term is recorded as deferred rent and is amortized over the lease term. | |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | [S] Stock-based compensation: |
The Company accounts for stock-based employee compensation for all share-based payments, including grants of stock options and restricted stock, as an operating expense based on their fair values on grant date. The Company recorded stock-based compensation expense of $1,154,000, $1,118,000 and $1,334,000 for the years ended December 31, 2012, 2013 and 2014, respectively. | |
The Company estimates the fair value of share-based option awards on the grant date using an option pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service period in the Company’s consolidated statement of operations. The Company estimates forfeitures at the time of grant in order to estimate the amount of share-based awards that will ultimately vest. The estimate is based on the Company’s historical rates of forfeitures. Estimated forfeitures are revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. | |
Income Tax, Policy [Policy Text Block] | [T] Income taxes: |
The Company uses the asset and liability method of accounting for deferred income taxes. Deferred income taxes are measured by applying enacted statutory rates to net operating loss carryforwards and to the differences between the financial reporting and tax bases of assets and liabilities. Deferred tax assets are reduced, if necessary, by a valuation allowance if it is more likely than not that some portion or all of the deferred tax assets will not be realized. | |
The Company recognizes uncertainty in income taxes in the financial statements using a recognition threshold and measurement attribute of a tax position taken or expected to be taken in a tax return. The Company applies the “more-likely-than-not” recognition threshold to all tax positions, commencing at the adoption date of the applicable accounting guidance, which resulted in no unrecognized tax benefits as of such date. Additionally, there have been no unrecognized tax benefits subsequent to adoption. The Company has opted to classify interest and penalties that would accrue according to the provisions of relevant tax law as selling, general, and administrative expenses, in the consolidated statement of operations. For the years ended December 31, 2012, 2013 and 2014, there was no such interest or penalty. | |
The Company files federal income tax returns and separate income tax returns in various states. For federal and certain states, the 2011 through 2014 tax years remain open for examination by the tax authorities under the normal three-year statute of limitations. For certain other states, the 2010 through 2014 tax years remain open for examination by the tax authorities under a four-year statute of limitations. | |
Fair Value of Financial Instruments, Policy [Policy Text Block] | [U] Fair value of financial instruments: |
Cash and cash equivalents and investments in securities are carried at fair value. The carrying value of financing receivables approximates fair value due to the interest rate implicit in the instruments approximating current market rates. The carrying value of accounts receivable, accounts payable and other liabilities approximates their fair values due to the short period to maturity of these instruments. | |
Advertising Costs, Policy [Policy Text Block] | [V] Advertising and marketing expense: |
Advertising and marketing costs are expensed as incurred. Advertising and marketing expense for the years ended December 31, 2012, 2013 and 2014 amounted to $317,000, $305,000 and $380,000, respectively. | |
Commitments and Contingencies, Policy [Policy Text Block] | [W] Commitments and contingencies: |
Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. | |
New Accounting Pronouncements, Policy [Policy Text Block] | [X] Recently issued accounting pronouncements: |
In May 2014, the Financial Accounting Standards Board (“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 August 2014, the FASB issued Accounting Standards Update ("ASU") No. 2014-15, "Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern" ("ASU 2014-15"), to provide guidance on management’s responsibility to evaluate whether there is substantial doubt about a company’s ability to continue as a going concern within one year after the date that the financial statements are issued. ASU 2014-15 also provides guidance for related footnote disclosures. ASU 2014-15 is effective for the Company beginning on January 1, 2016 with early adoption permitted. The Company does not believe the impact of its pending adoption of this ASU on the Company's consolidated financial statements will be material. | |
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_AND_FAIR_VALUE_MEA1
INVESTMENTS AND FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 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 and common stock of $1,744,000, classified by the contractual maturity date of the security as of December 31, 2014: | |||||||||||||
Fair Value | ||||||||||||||
Due within one year | $ | 1,505,000 | ||||||||||||
Due one year through three years | 3,642,000 | |||||||||||||
Due after three years | 424,000 | |||||||||||||
$ | 5,571,000 | |||||||||||||
Schedule of Available-for-sale Securities Reconciliation [Table Text Block] | The cost, gross unrealized gains (losses) and fair value of available for sale, held-to-maturity and trading by major security type at December 31, 2013 and 2014 were as follows: | |||||||||||||
Unrealized | Unrealized | Fair | ||||||||||||
December 31, 2014 | Cost | Gain | Loss | Value | ||||||||||
Investments - short term | ||||||||||||||
Available for sale | ||||||||||||||
Mutual funds | $ | 1,706,000 | - | -36,000 | $ | 1,670,000 | ||||||||
Corporate bonds and commercial paper | 824,000 | 1,000 | - | 825,000 | ||||||||||
U.S. Treasury Notes | 680,000 | - | - | 680,000 | ||||||||||
Common stock | 49,000 | 25,000 | - | 74,000 | ||||||||||
Total investments - short term | 3,259,000 | 26,000 | -36,000 | 3,249,000 | ||||||||||
Marketable securities - long term | ||||||||||||||
Available for sale | ||||||||||||||
U.S. Treasury Notes | 2,165,000 | - | -3,000 | 2,162,000 | ||||||||||
Government agency bonds | 751,000 | - | -3,000 | 748,000 | ||||||||||
Corporate bonds and commercial paper | 1,155,000 | 1,000 | - | 1,156,000 | ||||||||||
Total investments - long term | 4,071,000 | 1,000 | -6,000 | 4,066,000 | ||||||||||
Total investments | $ | 7,330,000 | $ | 27,000 | $ | -42,000 | $ | 7,315,000 | ||||||
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) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Deferred Revenue Disclosure [Abstract] | ||||||||
Deferred Revenue, by Arrangement, Disclosure [Table Text Block] | Deferred revenue consists of the following: | |||||||
December 31, | ||||||||
2013 | 2014 | |||||||
Deferred activation fees | $ | 496,000 | $ | 532,000 | ||||
Deferred industrial equipment installation revenue | 258,000 | 1,985,000 | ||||||
Deferred maintenance revenue | 1,959,000 | 3,211,000 | ||||||
Deferred remote asset management product revenue | 8,466,000 | 8,943,000 | ||||||
11,179,000 | 14,671,000 | |||||||
Less: Current portion | 4,641,000 | 6,742,000 | ||||||
Deferred revenue - less current portion | $ | 6,538,000 | $ | 7,929,000 | ||||
FINANCING_RECEIVABLES_Tables
FINANCING RECEIVABLES (Tables) | 12 Months Ended | |||||||
Dec. 31, 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, | ||||||||
2013 | 2014 | |||||||
Notes receivable | $ | 53,000 | $ | 27,000 | ||||
Sales-type lease receivable | 14,253,000 | 5,943,000 | ||||||
Less: Allowance for uncollectable minimum lease payments | - | - | ||||||
14,306,000 | 5,970,000 | |||||||
Less: Current portion | ||||||||
Notes receivable | 25,000 | 25,000 | ||||||
Sales-type lease receivable | 4,026,000 | 1,873,000 | ||||||
4,051,000 | 1,898,000 | |||||||
Financing receivables - less current portion | $ | 10,255,000 | $ | 4,072,000 | ||||
Schedule Of Capital Leases, Future Minimum Payments Receivable, Fiscal Year Maturity [Table Text Block] | Scheduled maturities of minimum lease payments outstanding as of December 31, 2014 are as follows: | |||||||
Year ending December 31: | ||||||||
2015 | $ | 1,873,000 | ||||||
2016 | 1,690,000 | |||||||
2017 | 1,354,000 | |||||||
2018 | 799,000 | |||||||
2019 | 209,000 | |||||||
Thereafter | 18,000 | |||||||
5,943,000 | ||||||||
Less: Current portion | 1,873,000 | |||||||
Total | $ | 4,070,000 | ||||||
INVENTORIES_Tables
INVENTORIES (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Schedule of Inventory, Current [Table Text Block] | Inventories consist of the following: | |||||||
December 31, | ||||||||
2013 | 2014 | |||||||
Components | $ | 2,968,000 | $ | 3,029,000 | ||||
Finished goods | 2,188,000 | 3,223,000 | ||||||
$ | 5,156,000 | $ | 6,252,000 | |||||
FIXED_ASSETS_Tables
FIXED ASSETS (Tables) | 12 Months Ended | |||||||
Dec. 31, 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 at December 31, 2013 and 2014, are summarized as follows: | |||||||
December 31, | ||||||||
2013 | 2014 | |||||||
Equipment | $ | 1,375,000 | $ | 1,480,000 | ||||
Computer software and website development | 3,319,000 | 3,470,000 | ||||||
Computer hardware | 2,565,000 | 2,717,000 | ||||||
Furniture and fixtures | 371,000 | 373,000 | ||||||
Automobiles | 47,000 | 47,000 | ||||||
Leasehold improvements | 181,000 | 181,000 | ||||||
7,858,000 | 8,268,000 | |||||||
Accumulated depreciation and amortization | -5,619,000 | -6,748,000 | ||||||
$ | 2,239,000 | $ | 1,520,000 | |||||
INTANGIBLE_ASSETS_AND_GOODWILL1
INTANGIBLE ASSETS AND GOODWILL (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 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 Didbox 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 December 31, 2014: | |||||||||||||
Useful | Gross | Net | ||||||||||||
Lives | Carrying | Accumulated | Carrying | |||||||||||
December 31, 2014 | (In Years) | Amount | Amortization | Amount | ||||||||||
Amortized: | ||||||||||||||
Patents | 11 | $ | 1,489,000 | $ | -677,000 | $ | 812,000 | |||||||
Tradename | 5 | 200,000 | -200,000 | - | ||||||||||
Non-competition agreement | 3 | 234,000 | -234,000 | - | ||||||||||
Technology | 5 | 50,000 | -50,000 | - | ||||||||||
Workforce | 5 | 33,000 | -33,000 | - | ||||||||||
Customer relationships | 5 | 4,499,000 | -4,499,000 | - | ||||||||||
6,505,000 | -5,693,000 | 812,000 | ||||||||||||
Unamortized: | ||||||||||||||
Customer list | 104,000 | - | 104,000 | |||||||||||
Trademark and Tradename | 61,000 | - | 61,000 | |||||||||||
165,000 | - | 165,000 | ||||||||||||
Total | $ | 6,670,000 | $ | -5,693,000 | $ | 977,000 | ||||||||
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 years ended December 31, 2012, 2013 and 2014 was $1,169,000, $1,166,000 and $1,087,000 (including $74,000 impairment charge for the PowerKey tradename and trademark in 2013), respectively. Estimated future amortization expense for the succeeding five years for the intangible assets at December 31, 2014 is as follows: | |||||||||||||
Year ending December 31: | ||||||||||||||
2015 | 135,000 | |||||||||||||
2016 | 135,000 | |||||||||||||
2017 | 135,000 | |||||||||||||
2018 | 135,000 | |||||||||||||
2019 | 135,000 | |||||||||||||
NET_LOSS_PER_SHARE_Tables
NET LOSS PER SHARE (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Earnings Per Share [Abstract] | |||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | December 31, | ||||||||||
Basic and diluted loss per share | 2012 | 2013 | 2014 | ||||||||
Net loss | $ | -2,592,000 | $ | -7,499,000 | $ | -11,575,000 | |||||
Weighted-average common shares outstanding - basic and diluted | 11,744,000 | 11,912,000 | 12,098,000 | ||||||||
Net loss per share - basic and diluted | $ | -0.22 | $ | -0.63 | $ | -0.96 | |||||
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | |||||||||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | A summary of the status of the Company’s stock options as of December 31, 2012, 2013 and 2014 and changes during the years then ended, is presented below: | ||||||||||||||||||||||
2012 | 2013 | 2014 | |||||||||||||||||||||
Weighted - | Weighted - | Weighted - | |||||||||||||||||||||
Average | Average | Average | |||||||||||||||||||||
Number of | Exercise | Number of | Exercise | Number of | Exercise | ||||||||||||||||||
Shares | Price | Shares | Price | Shares | Price | ||||||||||||||||||
Outstanding at beginning of year | 2,462,000 | $ | 7.41 | 2,568,000 | $ | 7.33 | 2,790,000 | $ | 7.25 | ||||||||||||||
Granted | 272,000 | 5.93 | 367,000 | 5.63 | 290,000 | 5.54 | |||||||||||||||||
Exercised | -56,000 | 3.85 | -67,000 | 3.4 | -126,000 | 3.65 | |||||||||||||||||
Expired | - | - | -25,000 | 5.89 | -383,000 | 6.88 | |||||||||||||||||
Forfeited | -110,000 | 7.56 | -53,000 | 5.13 | -362,000 | 10.03 | |||||||||||||||||
Outstanding at end of year | 2,568,000 | $ | 7.33 | 2,790,000 | $ | 7.25 | 2,209,000 | $ | 6.84 | ||||||||||||||
Exercisable at end of year | 1,649,000 | $ | 9.06 | 1,964,000 | $ | 8.12 | 1,620,000 | $ | 7.31 | ||||||||||||||
Schedule of Share-based Compensation, Stock Options and Stock Appreciation Rights Award Activity [Table Text Block] | The following table summarizes information about stock options at December 31, 2014: | ||||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||||
Weighted - | |||||||||||||||||||||||
Average | Weighted - | Weighted - | |||||||||||||||||||||
Remaining | Average | Aggregate | Average | Aggregate | |||||||||||||||||||
Exercise | Number | Contractual | Exercise | Intrinsic | Number | Exercise | Intrinsic | ||||||||||||||||
Prices ($) | Outstanding | Life | Price | Value | Outstanding | Price | Value | ||||||||||||||||
1.97 - 3.81 | 626,000 | 5 years | $ | 3.18 | 595,000 | $ | 3.18 | ||||||||||||||||
3.82 - 7.40 | 1,031,000 | 8 years | 5.48 | 473,000 | 5.26 | ||||||||||||||||||
7.41 - 14.15 | 408,000 | 1 years | 10.65 | 408,000 | 10.65 | ||||||||||||||||||
14.16 - 19.94 | 13,000 | 1 years | 17.07 | 13,000 | 17.07 | ||||||||||||||||||
19.95 - 25.38 | 131,000 | 1 years | 21.97 | 131,000 | 21.97 | ||||||||||||||||||
2,209,000 | 5 years | $ | 6.84 | $ | 3,440,000 | 1,620,000 | $ | 7.31 | $ | 2,764,000 | |||||||||||||
Weighted- | |||||||||||||||||||||||
Weighted- | Average | ||||||||||||||||||||||
Average | Aggregate | Remaining | |||||||||||||||||||||
Number | Exercise | Intrinsic | Contractual | ||||||||||||||||||||
Outstanding | Price | Value | Life | ||||||||||||||||||||
Options exercisable at December 31, 2014 | 1,620,000 | $ | 7.31 | $ | 2,764,000 | 3.95 | |||||||||||||||||
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: | ||||||||||||||||||||||
December 31, | |||||||||||||||||||||||
2012 | 2013 | 2014 | |||||||||||||||||||||
Expected volatility | 44.98 | % | 47.34 | % | 44.4 | % | |||||||||||||||||
Expected life of options | 3.0 - 5.0 years | 4.0 - 5.0 years | 3.0 - 4.0 years | ||||||||||||||||||||
Risk free interest rate | 0.5 | % | 0.6 | % | 1.2 | % | |||||||||||||||||
Dividend yield | 0 | % | 0 | % | 0 | % | |||||||||||||||||
Weighted-average fair value of options granted during the year | $ | 1.86 | $ | 2.17 | $ | 1.91 | |||||||||||||||||
Schedule of Nonvested Share Activity [Table Text Block] | A summary of the non-vested shares for the years ended December 31, 2012, 2013 and 2014 is as follows: | ||||||||||||||||||||||
Weighted - | |||||||||||||||||||||||
Average | |||||||||||||||||||||||
Number of | Grant | ||||||||||||||||||||||
Non-vested | Date | ||||||||||||||||||||||
Shares | Fair Value | ||||||||||||||||||||||
Non-vested at January 1, 2012 | 361,000 | $ | 3.34 | ||||||||||||||||||||
Granted | 75,000 | 5.93 | |||||||||||||||||||||
Vested | -143,000 | 3.79 | |||||||||||||||||||||
Forfeited | - | - | |||||||||||||||||||||
Non-vested at December 31, 2012 | 293,000 | $ | 3.79 | ||||||||||||||||||||
Granted | 101,000 | 5.67 | |||||||||||||||||||||
Vested | -183,000 | 3.35 | |||||||||||||||||||||
Forfeited | -11,000 | 4.92 | |||||||||||||||||||||
Non-vested at December 31, 2013 | 200,000 | $ | 5.08 | ||||||||||||||||||||
Granted | 608,000 | 5.68 | |||||||||||||||||||||
Vested | -99,000 | 5.06 | |||||||||||||||||||||
Forfeited | -93,000 | 5.02 | |||||||||||||||||||||
Non-vested at December 31, 2014 | 616,000 | $ | 5.69 | ||||||||||||||||||||
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 years ended December 31, 2012, 2013 and 2014: | ||||||||||||||||||||||
Non-vested | |||||||||||||||||||||||
Shares | |||||||||||||||||||||||
Performance shares, non-vested, January 1, 2012 | 327,000 | ||||||||||||||||||||||
Granted | 40,000 | ||||||||||||||||||||||
Vested | - | ||||||||||||||||||||||
Forfeited | -233,000 | ||||||||||||||||||||||
Performance shares, non-vested, December 31, 2012 | 134,000 | ||||||||||||||||||||||
Granted | - | ||||||||||||||||||||||
Vested | - | ||||||||||||||||||||||
Forfeited | -100,000 | ||||||||||||||||||||||
Performance shares, non-vested, December 31, 2013 | 34,000 | ||||||||||||||||||||||
Granted | - | ||||||||||||||||||||||
Vested | - | ||||||||||||||||||||||
Forfeited | -16,000 | ||||||||||||||||||||||
Performance shares, non-vested, December 31, 2014 | 18,000 | ||||||||||||||||||||||
ACCOUNTS_PAYABLE_AND_ACCRUED_E1
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables) | 12 Months Ended | |||||||
Dec. 31, 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, | ||||||||
2013 | 2014 | |||||||
Accounts payable | $ | 5,303,000 | $ | 7,190,000 | ||||
Accrued warranty | 522,000 | 942,000 | ||||||
Accrued severance | 100,000 | 180,000 | ||||||
Accrued compensation | 172,000 | 1,360,000 | ||||||
Other current liabilities | 167,000 | 430,000 | ||||||
$ | 6,264,000 | $ | 10,102,000 | |||||
Schedule of Product Warranty Liability [Table Text Block] | The following table summarizes warranty activity during the years ended December 31, 2013 and 2014: | |||||||
Year Ended | ||||||||
2013 | 2014 | |||||||
Accrued warranty reserve, beginning of year | $ | 520,000 | $ | 522,000 | ||||
Accrual for product warranties issued | 383,000 | 837,000 | ||||||
Product replacements and other warranty expenditures | -233,000 | -218,000 | ||||||
Expiration of warranties | -148,000 | -199,000 | ||||||
Accrued warranty reserve, end of period | $ | 522,000 | $ | 942,000 | ||||
CAPITAL_LEASE_OBLIGATION_Table
CAPITAL LEASE OBLIGATION (Tables) | 12 Months Ended | ||||
Dec. 31, 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: | |||||
2015 | 159,000 | ||||
Less: amount representing interest | -10,000 | ||||
Total | $ | 149,000 | |||
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 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 are as follows: | ||||||||||
Unrealized | Accumulated | ||||||||||
Foreign | gain (losses) | other | |||||||||
currency | on | comprehensive | |||||||||
items | investments | income | |||||||||
Balance at January 1, 2012 | $ | -26,000 | $ | -23,000 | $ | -49,000 | |||||
Net current period change | 6,000 | 96,000 | 102,000 | ||||||||
Balance at December 31, 2012 | -20,000 | $ | 73,000 | $ | 53,000 | ||||||
Net current period change | -77,000 | -82,000 | -159,000 | ||||||||
Balance at December 31, 2013 | -97,000 | $ | -9,000 | $ | -106,000 | ||||||
Net current period change | -263,000 | -6,000 | -269,000 | ||||||||
Balance at December 31, 2014 | $ | -360 | $ | -15,000 | -375,000 | ||||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Income Tax Disclosure [Abstract] | |||||||||||
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | Loss before income taxes consists of the following: | ||||||||||
Year Ended December 31, | |||||||||||
2012 | 2013 | 2014 | |||||||||
U.S. operations | $ | -2,736,000 | $ | -7,140,000 | $ | -11,650,000 | |||||
Foreign operations | -518,000 | -422,000 | 75,000 | ||||||||
$ | -3,254,000 | $ | -7,562,000 | $ | -11,575,000 | ||||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The difference between income taxes at the statutory federal income tax rate and income taxes reported in the Consolidated Statements of Operations is attributable to the following: | ||||||||||
Year Ended December 31, | |||||||||||
2012 | 2013 | 2014 | |||||||||
Income tax benefit at the federal statutory rate | $ | -1,106,000 | $ | -2,550,000 | $ | -3,936,000 | |||||
State and local income taxes, net of effect on federal taxes | -256,000 | -646,000 | -919,000 | ||||||||
Increase (decrease) in valuation allowance | -580,000 | 2,440,000 | 3,845,000 | ||||||||
ISO grants and restricted shares | 224,000 | 223,000 | 331,000 | ||||||||
Expiration and adjustment on sale of state net operating loss | 428,000 | 452,000 | 564,000 | ||||||||
Permanent differences and other | 628,000 | 18,000 | 115,000 | ||||||||
$ | -662,000 | $ | -63,000 | $ | - | ||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2013 and 2014 are presented below: | ||||||||||
December 31, | |||||||||||
2013 | 2014 | ||||||||||
Deferred tax assets: | |||||||||||
Net operating loss carryforwards | $ | 15,065,000 | $ | 18,245,000 | |||||||
Stock-based compensation | 1,386,000 | 1,350,000 | |||||||||
Deferred revenue | 4,048,000 | 4,349,000 | |||||||||
Intangibles, amortization | 1,058,000 | 1,292,000 | |||||||||
Inventories | 1,076,000 | 780,000 | |||||||||
Acquisition related expenses | 418,000 | 380,000 | |||||||||
Bad debt reserve | - | 590,000 | |||||||||
Other deductible temporary differences | 814,000 | 648,000 | |||||||||
Total gross deferred tax assets | 23,865,000 | 27,634,000 | |||||||||
Less: Valuation allowance | -21,473,000 | -25,318,000 | |||||||||
2,392,000 | 2,316,000 | ||||||||||
Deferred tax liabilities: | |||||||||||
Deferred expenses | -2,093,000 | -2,299,000 | |||||||||
Fixed assets, depreciation | -236,000 | -17,000 | |||||||||
-2,329,000 | -2,316,000 | ||||||||||
Net deferred tax assets | $ | 63,000 | $ | - | |||||||
WHOLLY_OWNED_FOREIGN_SUBSIDIAR1
WHOLLY OWNED FOREIGN SUBSIDIARIES (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Wholly Owned Foreign Subsidiaries [Abstract] | |||||||||||
Financial Statements of Foreign Subsidiary One [Table Text Block] | The net revenue and net loss for the IDS GmbH included in the Consolidated Statement of Operations are as follows: | ||||||||||
Year Ended December 31, | |||||||||||
2012 | 2013 | 2014 | |||||||||
Net revenue | $ | 1,198,000 | $ | 1,128,000 | $ | 4,194,000 | |||||
Net (loss) income | -420,000 | -395,000 | 618,000 | ||||||||
Financial Statements of Foreign Subsidiary Two [Table Text Block] | The net revenue and net loss for IDS Ltd included in the consolidated statement of operations are as follows: | ||||||||||
Year Ended December 31, | |||||||||||
2012 | 2013 | 2014 | |||||||||
Net revenue | $ | 1,133,000 | $ | 1,643,000 | $ | 380,000 | |||||
Net loss | -98,000 | -27,000 | -543,000 | ||||||||
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | The Company’s operating leases provide for minimum annual rental payments as follows: | ||||
Year Ending | |||||
December 31, | |||||
2015 | 625,000 | ||||
2016 | 476,000 | ||||
2017 | 484,000 | ||||
2018 | 496,000 | ||||
2019 | 496,000 | ||||
Thereafter | 578,000 | ||||
$ | 3,155,000 | ||||
QUARTERLY_SELECTED_FINANCIAL_D1
QUARTERLY SELECTED FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Quarterly Financial Data [Abstract] | ||||||||||||||
Schedule of Quarterly Financial Information [Table Text Block] | The following tables contain selected quarterly financial data for each quarter for the years ended December 31, 2013 and 2014. We believe the following information reflects all normal recurring adjustments necessary for a fair presentation of the information for the periods presented. The operating results for any period are not necessarily indicative of results for any future periods. | |||||||||||||
Year Ended December 31, 2014 | ||||||||||||||
1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | |||||||||||
Revenues: | ||||||||||||||
Products | $ | 5,790,000 | $ | 7,161,000 | $ | 7,292,000 | $ | 8,160,000 | ||||||
Services | 3,946,000 | 4,252,000 | 4,447,000 | 4,585,000 | ||||||||||
9,736,000 | 11,413,000 | 11,739,000 | 12,745,000 | |||||||||||
Cost of revenues: | ||||||||||||||
Cost of products | 3,302,000 | 4,769,000 | 4,653,000 | 6,734,000 | ||||||||||
Cost of services | 1,450,000 | 1,520,000 | 1,615,000 | 1,584,000 | ||||||||||
4,752,000 | 6,289,000 | 6,268,000 | 8,318,000 | |||||||||||
Gross Profit | 4,984,000 | 5,124,000 | 5,471,000 | 4,427,000 | ||||||||||
Selling, general and administrative expenses | 6,820,000 | 5,651,000 | 6,289,000 | 6,334,000 | ||||||||||
Research and development expenses | 1,150,000 | 1,343,000 | 1,770,000 | 2,386,000 | ||||||||||
Loss on settlement of finance receivable | - | - | - | -441,000 | ||||||||||
Other income, net | 155,000 | 165,000 | 144,000 | 139,000 | ||||||||||
Net loss | $ | -2,831,000 | $ | -1,705,000 | $ | -2,444,000 | $ | -4,595,000 | ||||||
Net loss per share - basic and diluted | $ | -0.24 | $ | -0.14 | $ | -0.2 | $ | -0.38 | ||||||
Year Ended December 31, 2013 | ||||||||||||||
1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | |||||||||||
Revenues: | ||||||||||||||
Products | $ | 3,775,000 | $ | 5,303,000 | $ | 6,966,000 | $ | 7,096,000 | ||||||
Services | 4,239,000 | 4,067,000 | 4,239,000 | 4,261,000 | ||||||||||
8,014,000 | 9,370,000 | 11,205,000 | 11,357,000 | |||||||||||
Cost of revenues: | ||||||||||||||
Cost of products | 2,694,000 | 3,005,000 | 3,853,000 | 6,362,000 | ||||||||||
Cost of services | 1,484,000 | 1,515,000 | 1,535,000 | 1,588,000 | ||||||||||
4,178,000 | 4,520,000 | 5,388,000 | 7,950,000 | |||||||||||
Gross Profit | 3,836,000 | 4,850,000 | 5,817,000 | 3,407,000 | ||||||||||
Selling, general and administrative expenses | 5,516,000 | 5,595,000 | 4,981,000 | 5,677,000 | ||||||||||
Research and development expenses | 1,140,000 | 1,123,000 | 1,082,000 | 1,044,000 | ||||||||||
Other income, net | 198,000 | 161,000 | 170,000 | 157,000 | ||||||||||
Net loss before income tax benefit | -2,622,000 | -1,707,000 | -76,000 | -3,157,000 | ||||||||||
Income tax benefit - sale of NJ net operating losses | - | 63,000 | ||||||||||||
Net loss | $ | -2,622,000 | $ | -1,707,000 | $ | -76,000 | $ | -3,094,000 | ||||||
Net loss per share - basic and diluted | $ | -0.22 | $ | -0.14 | $ | -0.01 | $ | -0.26 | ||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Summary Of Significant Accounting Policies [Line Items] | |||||||||||
Allowance For Doubtful Accounts Receivable, Current | $1,434,000 | $955,000 | $1,434,000 | $955,000 | |||||||
Inventory Valuation Reserves | 2,066,000 | 2,066,000 | |||||||||
Impairment of Long-Lived Assets Held-for-use | 74,000 | ||||||||||
Research and Development Expense | 2,386,000 | 1,770,000 | 1,343,000 | 1,150,000 | 1,044,000 | 1,082,000 | 1,123,000 | 1,140,000 | 6,649,000 | 4,389,000 | 4,341,000 |
Share-Based Compensation | 1,334,000 | 1,118,000 | 1,154,000 | ||||||||
Marketing and Advertising Expense | $380,000 | $305,000 | $317,000 |
SIGNIFICANT_TRANSACTION_AVIS_B1
SIGNIFICANT TRANSACTION - AVIS BUDGET GROUP, INC. (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | ||||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 22, 2011 | Dec. 31, 2011 | |
Significant Transactions [Line Items] | ||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $10 | $10 | ||||||||||||
Products | $8,160,000 | $7,292,000 | $7,161,000 | $5,790,000 | $7,096,000 | $6,966,000 | $5,303,000 | $3,775,000 | $6,900,000 | $28,403,000 | $23,140,000 | $28,640,000 | ||
Maintenance Revenue | 1,110,000 | 1,080,000 | 435,000 | |||||||||||
Proceeds from Sale of Finance Receivables | 5,371,000 | |||||||||||||
Gain (Loss) on Sale of Finance Receivable | -441,000 | 0 | 0 | 0 | -441,000 | |||||||||
Pilot Agreement With Avis Budget Car Rental [Member] | ||||||||||||||
Significant Transactions [Line Items] | ||||||||||||||
Invoices Issuable Under Management Agreement On Monthly Basis Number Of Invoice | 60 | |||||||||||||
Units Delivered Under System And Maintenance Services | 30,000 | |||||||||||||
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 | 4.6 | |||||||||||||
Stock Issued During Period, Shares, Treasury Stock Reissued | 1,000,000 | |||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | 600,000 | |||||||||||||
Maximum Amount Of System and Maintenance Services Revenue | 14,000,000 | |||||||||||||
Invoices Issuable Under Management Agreement On Monthly Basis Invoice Value | 286,100 | |||||||||||||
Products | $1,700,000 | |||||||||||||
Units Delivered Under System And Maintenance Services | 20,000 | 5,000 | ||||||||||||
Units Covered Under System and Maintenance Services | 25,000 |
INVESTMENTS_AND_FAIR_VALUE_MEA2
INVESTMENTS AND FAIR VALUE MEASUREMENTS (Details) (USD $) | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | |
Due within one year | $1,505,000 |
Due one year through three years | 3,642,000 |
Due after three years | 424,000 |
Long term | $5,571,000 |
INVESTMENTS_AND_FAIR_VALUE_MEA3
INVESTMENTS AND FAIR VALUE MEASUREMENTS (Details 1) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | $7,330,000 | $7,199,000 |
Unrealized Gain | 27,000 | 8,000 |
Unrealized Loss | -42,000 | -17,000 |
Fair Value | 7,315,000 | 7,190,000 |
Short-term Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 3,259,000 | 4,092,000 |
Unrealized Gain | 26,000 | 3,000 |
Unrealized Loss | -36,000 | -5,000 |
Fair Value | 3,249,000 | 4,090,000 |
Long-term Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 4,071,000 | 3,107,000 |
Unrealized Gain | 1,000 | 5,000 |
Unrealized Loss | -6,000 | -12,000 |
Fair Value | 4,066,000 | 3,100,000 |
U.S. Treasury Notes [Member] | Short-term Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 680,000 | 1,697,000 |
Unrealized Gain | 0 | 2,000 |
Unrealized Loss | 0 | 0 |
Fair Value | 680,000 | 1,699,000 |
U.S. Treasury Notes [Member] | Long-term Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 2,165,000 | 930,000 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | -3,000 | -4,000 |
Fair Value | 2,162,000 | 926,000 |
Mutual funds [Member] | Short-term Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 1,706,000 | 1,386,000 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | -36,000 | -4,000 |
Fair Value | 1,670,000 | 1,382,000 |
Corporate bonds and commercial paper [Member] | Short-term Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 824,000 | 590,000 |
Unrealized Gain | 1,000 | 1,000 |
Unrealized Loss | 0 | -1,000 |
Fair Value | 825,000 | 590,000 |
Corporate bonds and commercial paper [Member] | Long-term Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 1,155,000 | 1,565,000 |
Unrealized Gain | 1,000 | 5,000 |
Unrealized Loss | 0 | -1,000 |
Fair Value | 1,156,000 | 1,569,000 |
Government agency bonds [Member] | Short-term Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 419,000 | |
Unrealized Gain | 0 | |
Unrealized Loss | 0 | |
Fair Value | 419,000 | |
Government agency bonds [Member] | Long-term Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 751,000 | 612,000 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | -3,000 | -7,000 |
Fair Value | 748,000 | 605,000 |
Common Stock [Member] | Short-term Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 49,000 | |
Unrealized Gain | 25,000 | |
Unrealized Loss | 0 | |
Fair Value | $74,000 |
INVESTMENTS_AND_FAIR_VALUE_MEA4
INVESTMENTS AND FAIR VALUE MEASUREMENTS (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Unrealized gain (loss) on investments | ($13,000) | ($55,000) | $78,000 |
Investment in Mutual Funds and Common Stock | $1,744,000 |
REVENUE_RECOGNITION_Details
REVENUE RECOGNITION (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | $14,671,000 | $11,179,000 |
Less: Current portion | 6,742,000 | 4,641,000 |
Deferred revenue - less current portion | 7,929,000 | 6,538,000 |
Deferred activation fees [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | 532,000 | 496,000 |
Deferred industrial equipment installation revenue [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | 1,985,000 | 258,000 |
Deferred maintenance revenue [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | 3,211,000 | 1,959,000 |
Deferred remote asset management product revenue [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | $8,943,000 | $8,466,000 |
REVENUE_RECOGNITION_Details_Te
REVENUE RECOGNITION (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Deferred Revenue Arrangement [Line Items] | ||
Amortization Of Deferred Equipment Revenue | $3,720,000 | $3,169,000 |
Unbilled Receivables, Current | $170,000 | $0 |
FINANCING_RECEIVABLES_Details
FINANCING RECEIVABLES (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Financing Receivable, Recorded Investment [Line Items] | ||
Less: Allowance for credit losses | $0 | $0 |
Financing Receivable, Net | 5,970,000 | 14,306,000 |
Financing receivables, net current | 1,898,000 | 4,051,000 |
Financing receivables - less current portion | 4,072,000 | 10,255,000 |
Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivables, Gross | 27,000 | 53,000 |
Financing Receivable, Net | 25,000 | 25,000 |
Sales-type lease receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivables, Gross | 5,943,000 | 14,253,000 |
Financing Receivable, Net | $1,873,000 | $4,026,000 |
FINANCING_RECEIVABLES_Details_
FINANCING RECEIVABLES (Details 1) (USD $) | Dec. 31, 2014 |
Financing Receivable, Recorded Investment [Line Items] | |
2015 | $1,873,000 |
2016 | 1,690,000 |
2017 | 1,354,000 |
2018 | 799,000 |
2019 | 209,000 |
Thereafter | 18,000 |
Capital Leases, Future Minimum Payments Receivable | 5,943,000 |
Less: Current portion | 1,873,000 |
Total | $4,070,000 |
FINANCING_RECEIVABLES_Details_1
FINANCING RECEIVABLES (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Financing Receivable, Recorded Investment [Line Items] | ||||||
Unearned Income On Sales Type Leases | $565,000 | $565,000 | $1,169,000 | |||
Proceeds from Sale of Finance Receivables | 5,371,000 | |||||
Gain (Loss) on Sale of Finance Receivable | ($441,000) | $0 | $0 | $0 | ($441,000) | |
Minimum [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Product Financing Arrangements Bearing Interest Rate | 8.00% | 8.00% | ||||
Discount Rate Of Unearned Income | 1.00% | 1.00% | ||||
Maximum [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Product Financing Arrangements Bearing Interest Rate | 10.00% | 10.00% | ||||
Discount Rate Of Unearned Income | 26.00% | 26.00% |
INVENTORIES_Details
INVENTORIES (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Inventory [Line Items] | ||
Components | $3,029,000 | $2,968,000 |
Finished goods | 3,223,000 | 2,188,000 |
Inventory, Net | $6,252,000 | $5,156,000 |
FIXED_ASSETS_Details
FIXED ASSETS (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $8,268,000 | $7,858,000 |
Accumulated depreciation and amortization | -6,748,000 | -5,619,000 |
Property, Plant and Equipment, Net | 1,520,000 | 2,239,000 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 1,480,000 | 1,375,000 |
Computer software and website development [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 3,470,000 | 3,319,000 |
Computer hardware [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 2,717,000 | 2,565,000 |
Furniture and fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 373,000 | 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 |
FIXED_ASSETS_Details_Textual
FIXED ASSETS (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation, Depletion and Amortization, Nonproduction | $1,129,000 | $1,005,000 | $1,017,000 |
Amortization | 1,087,000 | 1,166,000 | 1,169,000 |
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation | 58,000 | ||
Capital Leases, Income Statement, Amortization Expense | 58,000 | ||
Capital Leases, Balance Sheet, Assets by Major Class, Net | 246,000 | ||
Computer Software, Intangible Asset [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Computer Equipment Not Yet Placed In Service | 63,000 | ||
Computer Software and Website Development [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Amortization | 577,000 | 566,000 | 576,000 |
Capitalized Website Enhancement | 151,000 | 16,000 | |
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 $) | 12 Months Ended | |
Dec. 31, 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 | -5,693,000 | -4,606,000 |
Finite-Lived Intangible Assets, Net, Total | 812,000 | 1,899,000 |
Indefinite-Lived Intangible Assets (Excluding Goodwill) | 165,000 | 165,000 |
Intangible Assets Gross | 6,670,000 | 6,670,000 |
Total | 977,000 | 2,064,000 |
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 | -677,000 | -541,000 |
Finite-Lived Intangible Assets, Net, Total | 812,000 | 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 | -200,000 | -160,000 |
Finite-Lived Intangible Assets, Net, Total | 0 | 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 | -50,000 | -42,000 |
Finite-Lived Intangible Assets, Net, Total | 0 | 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 | -33,000 | -28,000 |
Finite-Lived Intangible Assets, Net, Total | 0 | 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 | -4,499,000 | -3,601,000 |
Finite-Lived Intangible Assets, Net, Total | $0 | $898,000 |
Finite-Lived Intangible Asset, Useful Life | 5 years | 5 years |
INTANGIBLE_ASSETS_AND_GOODWILL3
INTANGIBLE ASSETS AND GOODWILL (Details 1) (USD $) | Dec. 31, 2014 |
Year ending December 31: | |
2015 | $135,000 |
2016 | 135,000 |
2017 | 135,000 |
2018 | 135,000 |
2019 | $135,000 |
INTANGIBLE_ASSETS_AND_GOODWILL4
INTANGIBLE ASSETS AND GOODWILL (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization | $1,087,000 | $1,166,000 | $1,169,000 |
Impairment of Long-Lived Assets Held-for-use | 74,000 | ||
PowerKey Tradename [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Impairment of Long-Lived Assets Held-for-use | $74,000 |
NET_LOSS_PER_SHARE_Details
NET LOSS PER SHARE (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Basic and diluted loss per share | |||||||||||
Net loss | ($4,595,000) | ($2,444,000) | ($1,705,000) | ($2,831,000) | ($3,094,000) | ($76,000) | ($1,707,000) | ($2,622,000) | ($11,575,000) | ($7,499,000) | ($2,592,000) |
Weighted-average common shares outstanding - basic and diluted (in shares) | 12,098,000 | 11,912,000 | 11,744,000 | ||||||||
Net loss per share - basic and diluted (in dollars per share) | ($0.38) | ($0.20) | ($0.14) | ($0.24) | ($0.26) | ($0.01) | ($0.14) | ($0.22) | ($0.96) | ($0.63) | ($0.22) |
NET_LOSS_PER_SHARE_Details_Tex
NET LOSS PER SHARE (Details Textual) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,943,000 | 3,124,000 | 3,095,000 |
ACCOUNTS_PAYABLE_AND_ACCRUED_E2
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Accounts Payable And Accrued Expenses [Line Items] | ||
Accounts payable | $7,190,000 | $5,303,000 |
Accrued warranty | 942,000 | 522,000 |
Accrued severance | 180,000 | 100,000 |
Accrued compensation | 1,360,000 | 172,000 |
Other current liabilities | 430,000 | 167,000 |
Accounts payable and accrued expenses | $10,102,000 | $6,264,000 |
STOCKBASED_COMPENSATION_Detail
STOCK-BASED COMPENSATION (Details) (Employee Stock Option [Member], USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares, Outstanding at beginning of year | 2,790,000 | 2,568,000 | 2,462,000 |
Number of Shares, Granted | 290,000 | 367,000 | 272,000 |
Number of Shares, Exercised | -126,000 | -67,000 | -56,000 |
Number of Shares, Expired | -383,000 | -25,000 | 0 |
Number of Shares, Forfeited | -362,000 | -53,000 | -110,000 |
Options, Outstanding at end of year | 2,209,000 | 2,790,000 | 2,568,000 |
Options, Exercisable at end of period | 1,620,000 | 1,964,000 | 1,649,000 |
Weighted-Average Exercise Price, Outstanding at beginning of year (in dollars per share) | $7.25 | $7.33 | $7.41 |
Weighted-Average Exercise Price, Granted (in dollars per share) | $5.54 | $5.63 | $5.93 |
Weighted-Average Exercise Price, Exercised (in dollars per share) | $3.65 | $3.40 | $3.85 |
Weighted-Average Exercise Price, Expired (in dollars per share) | $6.88 | $5.89 | $0 |
Weighted-Average Exercise Price, Forfeited (in dollars per share) | $10.03 | $5.13 | $7.56 |
Weighted-Average Exercise Price, Outstanding at end of year (in dollars per share) | $6.84 | $7.25 | $7.33 |
Weighted-Average Exercise Price, Exercisable at end of period (in dollars per share) | $7.31 | $8.12 | $9.06 |
STOCKBASED_COMPENSATION_Detail1
STOCK-BASED COMPENSATION (Details 1) (Employee Stock Option [Member], USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options Outstanding- Number Outstanding | 2,209,000 | 2,790,000 | 2,568,000 | 2,462,000 |
Options Outstanding - Weighted Average Remaining Contractual Life (in years) | 5 years | |||
Options Outstanding - Weighted Average Exercise Price | $6.84 | $7.25 | $7.33 | $7.41 |
Options Outstanding - Aggregate Intrinsic Value (in dollars) | $3,440,000 | |||
Options Exercisable - Number Outstanding | 1,620,000 | 1,964,000 | 1,649,000 | |
Options Exercisable Weighted Average Exercise Price | $7.31 | $8.12 | $9.06 | |
Options Exercisable, Aggregate Intrinsic Value (in dollars) | $2,764,000 | |||
Option One [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options Outstanding- Number Outstanding | 626,000 | |||
Options Outstanding - Weighted Average Remaining Contractual Life (in years) | 5 years | |||
Options Outstanding - Weighted Average Exercise Price | $3.18 | |||
Options Exercisable - Number Outstanding | 595,000 | |||
Options Exercisable Weighted Average Exercise Price | $3.18 | |||
Option One [Member] | Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise Prices | $1.97 | |||
Option One [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise Prices | $3.81 | |||
Option Two [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options Outstanding- Number Outstanding | 1,031,000 | |||
Options Outstanding - Weighted Average Remaining Contractual Life (in years) | 8 years | |||
Options Outstanding - Weighted Average Exercise Price | $5.48 | |||
Options Exercisable - Number Outstanding | 473,000 | |||
Options Exercisable Weighted Average Exercise Price | $5.26 | |||
Option Two [Member] | Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise Prices | $3.82 | |||
Option Two [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise Prices | $7.40 | |||
Option Three [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options Outstanding- Number Outstanding | 408,000 | |||
Options Outstanding - Weighted Average Remaining Contractual Life (in years) | 1 year | |||
Options Outstanding - Weighted Average Exercise Price | $10.65 | |||
Options Exercisable - Number Outstanding | 408,000 | |||
Options Exercisable Weighted Average Exercise Price | $10.65 | |||
Option Three [Member] | Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise Prices | $7.41 | |||
Option Three [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise Prices | $14.15 | |||
Option Four [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options Outstanding- Number Outstanding | 13,000 | |||
Options Outstanding - Weighted Average Remaining Contractual Life (in years) | 1 year | |||
Options Outstanding - Weighted Average Exercise Price | $17.07 | |||
Options Exercisable - Number Outstanding | 13,000 | |||
Options Exercisable Weighted Average Exercise Price | $17.07 | |||
Option Four [Member] | Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise Prices | $14.16 | |||
Option Four [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise Prices | $19.94 | |||
Option Five [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options Outstanding- Number Outstanding | 131,000 | |||
Options Outstanding - Weighted Average Remaining Contractual Life (in years) | 1 year | |||
Options Outstanding - Weighted Average Exercise Price | $21.97 | |||
Options Exercisable - Number Outstanding | 131,000 | |||
Options Exercisable Weighted Average Exercise Price | $21.97 | |||
Option Five [Member] | Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise Prices | $19.95 | |||
Option Five [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise Prices | $25.38 |
STOCKBASED_COMPENSATION_Detail2
STOCK-BASED COMPENSATION (Details 2) (Employee Stock Option [Member], USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number Outstanding - Options exercisable | 1,620,000 | 1,964,000 | 1,649,000 |
Weighted Average Exercise Price - Options exercisable | $7.31 | $8.12 | $9.06 |
Aggregate Intrinsic Value - Options exercisable (in dollars) | $2,764,000 | ||
Weighted Average Remaining Contractual Life - Options exercisable (in years) | 3 years 11 months 12 days |
STOCKBASED_COMPENSATION_Detail3
STOCK-BASED COMPENSATION (Details 3) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||
Expected volatility | 44.40% | 47.34% | 44.98% |
Risk free interest rate | 1.20% | 0.60% | 0.50% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Weighted-average fair value of options granted during the year (in dollars per share) | $1.91 | $2.17 | $1.86 |
Minimum [Member] | |||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||
Expected life of options (in years) | 3 years | 4 years | 3 years |
Maximum [Member] | |||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||
Expected life of options (in years) | 4 years | 5 years | 5 years |
STOCKBASED_COMPENSATION_Detail4
STOCK-BASED COMPENSATION (Details 4) (Restricted Stock [Member], USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Non-vested shares, beginning of year | 200,000 | 293,000 | 361,000 |
Number of Non-vested Shares,Granted | 608,000 | 101,000 | 75,000 |
Number of Non-vested Shares,Vested | -99,000 | -183,000 | -143,000 |
Number of Non-vested Shares, Forfeited | -93,000 | -11,000 | 0 |
Non-vested shares, end of year | 616,000 | 200,000 | 293,000 |
Weighted- Average Grant Date Fair Value, non-vested, beginning of year (in dollars per share) | $5.08 | $3.79 | $3.34 |
Weighted- Average Grant Date Fair Value,Granted (in dollars per share) | $5.68 | $5.67 | $5.93 |
Weighted- Average Grant Date Fair Value,Vested (in dollars per share) | $5.06 | $3.35 | $3.79 |
Weighted- Average Grant Date Fair Value,Forfeited (in dollars per share) | $5.02 | $4.92 | $0 |
Weighted- Average Grant Date Fair Value, non-vested, end of year (in dollars per share) | $5.69 | $5.08 | $3.79 |
STOCKBASED_COMPENSATION_Detail5
STOCK-BASED COMPENSATION (Details 5) (Performance Shares [Member]) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Non-vested shares, beginning of year | 34,000 | 134,000 | 327,000 |
Non-vested Shares, Granted | 0 | 0 | 40,000 |
Non-vested Shares, Vested | 0 | 0 | 0 |
Non-vested Shares, Forfeited | -16,000 | -100,000 | -233,000 |
Non-vested shares, end of year | 18,000 | 34,000 | 134,000 |
STOCKBASED_COMPENSATION_Detail6
STOCK-BASED COMPENSATION (Details Textual) (USD $) | 12 Months Ended | 3 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | Jun. 30, 2014 | Aug. 22, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value | $276,000 | $209,000 | $83,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | 712,000 | 633,000 | 657,000 | |||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | 2,592,000 | |||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | 2 years 11 months 19 days | |||||
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 Vested Value | 137,000 | |||||
Number Of Warrants Nonvested | 500,000 | |||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 600,000 | |||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $10 | |||||
Separation Agreement [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Allocated Share-based Compensation Expense | 327,000 | |||||
Avis Budget Group, Inc. [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $600,000 | |||||
Stock Option Plan 1995 [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 | |||||
Stock Option Plan 1999 [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 | 2,813,000 | |||||
Director Option Plan 1999 [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 | 600,000 | |||||
Non-Employee Director Equity Compensation Plan 2009 [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 | 600,000 | |||||
Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Allocated Share-based Compensation Expense | 787,000 | 527,000 | 510,000 | |||
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 | 2,500,000 | |||||
Employee Stock Option [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Allocated Share-based Compensation Expense | 540,000 | 579,000 | 614,000 | |||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | 810,000 | |||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | 3 years 4 days | |||||
2009 Director Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Allocated Share-based Compensation Expense | $49,000 |
ACCOUNTS_PAYABLE_AND_ACCRUED_E3
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details 1) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Accrued warranty reserve, beginning of year | $522,000 | $520,000 |
Accrual for product warranties issued | 837,000 | 383,000 |
Product replacements and other warranty expenditures | -218,000 | -233,000 |
Expiration of warranties | -199,000 | -148,000 |
Accrued warranty reserve, end of period | $942,000 | $522,000 |
ACCOUNTS_PAYABLE_AND_ACCRUED_E4
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details Textual) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Accounts Payable And Accrued Expenses [Line Items] | ||
Severance Costs Payable, Monthly Installments, Amount | $20,000 | $17,000 |
CAPITAL_LEASE_OBLIGATION_Detai
CAPITAL LEASE OBLIGATION (Details) (USD $) | Dec. 31, 2014 |
Year ending December 31: | |
2015 | $159,000 |
Less: amount representing interest | -10,000 |
Total | $149,000 |
CAPITAL_LEASE_OBLIGATION_Detai1
CAPITAL LEASE OBLIGATION (Details Textual) (USD $) | 12 Months Ended |
Dec. 31, 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 | Dec-15 |
CONCENTRATION_OF_CUSTOMERS_Det
CONCENTRATION OF CUSTOMERS (Details Textual) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Sales Revenue, Net [Member] | Customer One [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 16.00% | 18.00% | 18.00% |
Sales Revenue, Net [Member] | Customer Two [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 14.00% | 10.00% | |
Sales Revenue, Net [Member] | Customer Three [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 15.00% | ||
Accounts Receivable [Member] | Customer One [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 14.00% | 10.00% | 14.00% |
Accounts Receivable [Member] | Customer Two [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 10.00% | ||
Accounts Receivable [Member] | Customer Three [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 12.00% | ||
Financing Receivable [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 10.00% | ||
Financing Receivable [Member] | Customer One [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 54.00% | ||
Notes and Sales-type Lease Receivables [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 70.00% |
STOCKHOLDERS_EQUITY_Details_Te
STOCKHOLDERS' EQUITY (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Class of Stock [Line Items] | |||
Shares Paid for Tax Withholding for Share Based Compensation | 25,000 | 49,000 | 18,000 |
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 | |
Preferred Stock, Par Or Stated Value Per Share | $0.01 | $0.01 | |
Stock Repurchased During Period, Value | $193,000 | ||
Payments Related to Tax Withholding for Share-based Compensation | 144,000 | 265,000 | 100,000 |
Repurchase Program 2010 [Member] | |||
Class of Stock [Line Items] | |||
Stock Repurchase Program, Authorized Amount | 3,000,000 | ||
Stock Repurchased During Period, Value | $1,340,000 | ||
Stock Repurchased During Period Price Per Share | $4.33 | ||
Stock Repurchased During Period, Shares | 310,000 |
ACCUMULATED_OTHER_COMPREHENSIV2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Foreign currency items, Balance at Beginning | ($97,000) | ($20,000) | ($26,000) |
Foreign currency items, Net current period change | -263,000 | -77,000 | 6,000 |
Foreign currency items, Balance at End | -360,000 | -97,000 | -20,000 |
Unrealized gain (losses) on investments, Balance at Beginning | -9,000 | 73,000 | -23,000 |
Unrealized gain (losses) on investments, Net current period change | -6,000 | -82,000 | 96,000 |
Unrealized gain (losses) on investments, Balance at End | -15,000 | -9,000 | 73,000 |
Accumulated other comprehensive income (loss), Balance at Beginning | -106,000 | 53,000 | -49,000 |
Accumulated other comprehensive income, Net current period change | -269,000 | -159,000 | 102,000 |
Accumulated Other Comprehensive Income (Loss), Net of Tax | ($375,000) | ($106,000) | $53,000 |
ACCUMULATED_OTHER_COMPREHENSIV3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax | ($263,000) | ($77,000) | $6,000 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Taxes [Line Items] | |||||||
U.S. operations | ($11,650,000) | ($7,140,000) | ($2,736,000) | ||||
Foreign operations | 75,000 | -422,000 | -518,000 | ||||
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest | ($3,157,000) | ($76,000) | ($1,707,000) | ($2,622,000) | ($11,575,000) | ($7,562,000) | ($3,254,000) |
INCOME_TAXES_Details_1
INCOME TAXES (Details 1) (USD $) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Effective Income Tax Rate Reconciliation [Line Items] | |||||
Income tax benefit at the federal statutory rate | ($3,936,000) | ($2,550,000) | ($1,106,000) | ||
State and local income taxes, net of effect on federal taxes | -919,000 | -646,000 | -256,000 | ||
Increase (decrease) in valuation allowance | 3,845,000 | 2,440,000 | -580,000 | ||
ISO grants and restricted shares | 331,000 | 223,000 | 224,000 | ||
Expiration and adjustment on sale of state net operating loss | 564,000 | 452,000 | 428,000 | ||
Permanent differences and other | 115,000 | 18,000 | 628,000 | ||
Income Tax Expense (Benefit) | ($63,000) | $0 | $0 | ($63,000) | ($662,000) |
INCOME_TAXES_Details_2
INCOME TAXES (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Deferred tax assets: | ||
Net operating loss carryforwards | $18,245,000 | $15,065,000 |
Stock-based compensation | 1,350,000 | 1,386,000 |
Deferred revenue | 4,349,000 | 4,048,000 |
Intangibles, amortization | 1,292,000 | 1,058,000 |
Inventories | 780,000 | 1,076,000 |
Acquisition related expenses | 380,000 | 418,000 |
Bad debt reserve | 590,000 | 0 |
Other deductible temporary differences | 648,000 | 814,000 |
Total gross deferred tax assets | 27,634,000 | 23,865,000 |
Less: Valuation allowance | -25,318,000 | -21,473,000 |
Deferred Tax Assets, Net of Valuation Allowance | 2,316,000 | 2,392,000 |
Deferred tax liabilities: | ||
Deferred expenses | -2,299,000 | -2,093,000 |
Fixed assets, depreciation | -17,000 | -236,000 |
Deferred Tax Liabilities, Net, Current | -2,316,000 | -2,329,000 |
Net deferred tax assets | $0 | $63,000 |
INCOME_TAXES_Details_Textual
INCOME TAXES (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Taxes [Line Items] | |||
Operating Loss Carryforwards | $56,790,000 | ||
Sale Approved Net Value | 760,000 | ||
Proceeds From Sale Of Tax Benefits | 63,000 | 662,000 | 390,000 |
Sale Approved | 10,300,000 | ||
Sale Approved Percentage | 7.40% | ||
Deferred Tax Assets, Operating Loss Carryforwards, State and Local | 22,084,000 | ||
Deferred Tax Assets, Operating Loss Carryforwards, Foreign | 1,534,000 | ||
Tax Credit Carryforward, Valuation Allowance | 63,000 | ||
Net Deferred Tax Assets | 25,318,000 | 21,536,000 | |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 3,845,000 | 2,344,000 | -580,000 |
Employee Stock Option [Member] | |||
Income Taxes [Line Items] | |||
Operating Loss Carryforwards | 7,847,000 | ||
New Jersey [Member] | |||
Income Taxes [Line Items] | |||
Operating Loss Carryforwards | $12,037,000 | ||
Operating Loss Carryforwards, Expiration Year | 2034 | ||
Foreign Country [Member] | Minimum [Member] | |||
Income Taxes [Line Items] | |||
Operating Loss Carryforwards, Expiration Year | 2020 | ||
Foreign Country [Member] | Maximum [Member] | |||
Income Taxes [Line Items] | |||
Operating Loss Carryforwards, Expiration Year | 2034 | ||
State and Local Jurisdiction [Member] | Minimum [Member] | |||
Income Taxes [Line Items] | |||
Operating Loss Carryforwards, Expiration Year | 2016 | ||
State and Local Jurisdiction [Member] | Maximum [Member] | |||
Income Taxes [Line Items] | |||
Operating Loss Carryforwards, Expiration Year | 2034 |
WHOLLY_OWNED_FOREIGN_SUBSIDIAR2
WHOLLY OWNED FOREIGN SUBSIDIARIES (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Foreign Subsidiaries Financial Information Disclosure [Line Items] | |||||||||||
Net revenue | $12,745,000 | $11,739,000 | $11,413,000 | $9,736,000 | $11,357,000 | $11,205,000 | $9,370,000 | $8,014,000 | $45,633,000 | $39,946,000 | $44,635,000 |
Net (loss) income | -4,595,000 | -2,444,000 | -1,705,000 | -2,831,000 | -3,094,000 | -76,000 | -1,707,000 | -2,622,000 | -11,575,000 | -7,499,000 | -2,592,000 |
IDS GmbH [Member] | |||||||||||
Foreign Subsidiaries Financial Information Disclosure [Line Items] | |||||||||||
Net revenue | 4,194,000 | 1,128,000 | 1,198,000 | ||||||||
Net (loss) income | $618,000 | ($395,000) | ($420,000) |
WHOLLY_OWNED_FOREIGN_SUBSIDIAR3
WHOLLY OWNED FOREIGN SUBSIDIARIES (Details 1) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Foreign Subsidiaries Financial Information Disclosure [Line Items] | |||||||||||
Net revenue | $12,745,000 | $11,739,000 | $11,413,000 | $9,736,000 | $11,357,000 | $11,205,000 | $9,370,000 | $8,014,000 | $45,633,000 | $39,946,000 | $44,635,000 |
Net loss | -4,595,000 | -2,444,000 | -1,705,000 | -2,831,000 | -3,094,000 | -76,000 | -1,707,000 | -2,622,000 | -11,575,000 | -7,499,000 | -2,592,000 |
IDS Ltd [Member] | |||||||||||
Foreign Subsidiaries Financial Information Disclosure [Line Items] | |||||||||||
Net revenue | 380,000 | 1,643,000 | 1,133,000 | ||||||||
Net loss | ($543,000) | ($27,000) | ($98,000) |
WHOLLY_OWNED_FOREIGN_SUBSIDIAR4
WHOLLY OWNED FOREIGN SUBSIDIARIES (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Foreign Subsidiaries Financial Information Disclosure [Line Items] | |||
Assets, Total | $52,486,000 | $55,515,000 | |
Foreign Currency Transaction Gain (Loss), Realized | -56,000 | 37,000 | -15,000 |
IDS GmbH [Member] | |||
Foreign Subsidiaries Financial Information Disclosure [Line Items] | |||
Assets, Total | 4,235,000 | 1,701,000 | |
IDS Ltd [Member] | |||
Foreign Subsidiaries Financial Information Disclosure [Line Items] | |||
Assets, Total | $1,937,000 | $2,200,000 |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | Dec. 31, 2014 |
Operating Leases Future Minimum Payments Due [Line Items] | |
2015 | $625,000 |
2016 | 476,000 |
2017 | 484,000 |
2018 | 496,000 |
2019 | 496,000 |
Thereafter | 578,000 |
Operating Leases, Future Minimum Payments Due | $3,155,000 |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details Textual) (USD $) | 12 Months Ended | 3 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | |
Other Commitments [Line Items] | ||||
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, 15 or 18 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) an award of “Performance Shares” under the Restricted Stock Unit Award Agreement previously entered into between the Company and the executive. | |||
Operating Leases, Rent Expense | $805,000 | $840,000 | $900,000 | |
Separation Agreement [Member] | ||||
Other Commitments [Line Items] | ||||
Allocated Share-Based Compensation Expense | 327,000 | |||
Severance Costs | $523,000 |
QUARTERLY_SELECTED_FINANCIAL_D2
QUARTERLY SELECTED FINANCIAL DATA (UNAUDITED) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Revenues: | ||||||||||||
Products | $8,160,000 | $7,292,000 | $7,161,000 | $5,790,000 | $7,096,000 | $6,966,000 | $5,303,000 | $3,775,000 | $6,900,000 | $28,403,000 | $23,140,000 | $28,640,000 |
Services | 4,585,000 | 4,447,000 | 4,252,000 | 3,946,000 | 4,261,000 | 4,239,000 | 4,067,000 | 4,239,000 | 17,230,000 | 16,806,000 | 15,995,000 | |
Revenue, Net | 12,745,000 | 11,739,000 | 11,413,000 | 9,736,000 | 11,357,000 | 11,205,000 | 9,370,000 | 8,014,000 | 45,633,000 | 39,946,000 | 44,635,000 | |
Cost of revenues: | ||||||||||||
Cost of products | 6,734,000 | 4,653,000 | 4,769,000 | 3,302,000 | 6,362,000 | 3,853,000 | 3,005,000 | 2,694,000 | 19,458,000 | 15,914,000 | 16,038,000 | |
Cost of services | 1,584,000 | 1,615,000 | 1,520,000 | 1,450,000 | 1,588,000 | 1,535,000 | 1,515,000 | 1,484,000 | 6,169,000 | 6,122,000 | 5,667,000 | |
Cost of Goods and Services Sold | 8,318,000 | 6,268,000 | 6,289,000 | 4,752,000 | 7,950,000 | 5,388,000 | 4,520,000 | 4,178,000 | 25,627,000 | 22,036,000 | 21,705,000 | |
Gross Profit | 4,427,000 | 5,471,000 | 5,124,000 | 4,984,000 | 3,407,000 | 5,817,000 | 4,850,000 | 3,836,000 | 20,006,000 | 17,910,000 | 22,930,000 | |
Selling, general and administrative expenses | 6,334,000 | 6,289,000 | 5,651,000 | 6,820,000 | 5,677,000 | 4,981,000 | 5,595,000 | 5,516,000 | 25,094,000 | 21,769,000 | 22,409,000 | |
Research and development expenses | 2,386,000 | 1,770,000 | 1,343,000 | 1,150,000 | 1,044,000 | 1,082,000 | 1,123,000 | 1,140,000 | 6,649,000 | 4,389,000 | 4,341,000 | |
Loss on settlement of finance receivable | -441,000 | 0 | 0 | 0 | -441,000 | |||||||
Other income, net | 139,000 | 144,000 | 165,000 | 155,000 | 157,000 | 170,000 | 161,000 | 198,000 | 37,000 | 51,000 | 59,000 | |
Net loss before income tax benefit | -3,157,000 | -76,000 | -1,707,000 | -2,622,000 | -11,575,000 | -7,562,000 | -3,254,000 | |||||
Income tax benefit - sale of NJ net operating losses | 63,000 | 0 | 0 | 63,000 | 662,000 | |||||||
Net loss | ($4,595,000) | ($2,444,000) | ($1,705,000) | ($2,831,000) | ($3,094,000) | ($76,000) | ($1,707,000) | ($2,622,000) | ($11,575,000) | ($7,499,000) | ($2,592,000) | |
Net loss per share - basic and diluted (in dollars per share) | ($0.38) | ($0.20) | ($0.14) | ($0.24) | ($0.26) | ($0.01) | ($0.14) | ($0.22) | ($0.96) | ($0.63) | ($0.22) |