Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Aug. 01, 2017 | |
Document And Entity Information | ||
Entity Registrant Name | ID SYSTEMS INC | |
Entity Central Index Key | 49,615 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 17,371,418 | |
Trading Symbol | IDSY | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,017 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 8,450,000 | $ 4,972,000 |
Restricted cash | 305,000 | 305,000 |
Investments - short term | 20,000 | 115,000 |
Accounts receivable, net of allowance for doubtful accounts of $341,000 and $165,000 in 2016 and 2017, respectively | 8,123,000 | 9,585,000 |
Financing receivables - current, net of allowance for doubtful accounts of $-0- in 2016 and 2017 | 1,634,000 | 1,766,000 |
Inventory, net | 2,584,000 | 3,920,000 |
Deferred costs - current | 4,516,000 | 3,750,000 |
Prepaid expenses and other current assets | 4,048,000 | 3,495,000 |
Total current assets | 29,680,000 | 27,908,000 |
Investments - long term | 1,539,000 | 1,499,000 |
Financing receivables - less current portion | 1,896,000 | 2,430,000 |
Deferred costs - less current portion | 5,070,000 | 6,638,000 |
Fixed assets, net | 2,936,000 | 3,075,000 |
Goodwill | 1,837,000 | 1,837,000 |
Intangible assets, net | 639,000 | 706,000 |
Other assets | 159,000 | 153,000 |
Total assets | 43,756,000 | 44,246,000 |
Current liabilities: | ||
Short-term borrowings | 2,993,000 | |
Accounts payable and accrued expenses | 8,539,000 | 7,622,000 |
Deferred revenue - current | 10,999,000 | 7,197,000 |
Total current liabilities | 19,538,000 | 17,812,000 |
Deferred rent | 335,000 | 366,000 |
Deferred revenue - less current portion | 8,291,000 | 10,066,000 |
Total liabilities | 28,164,000 | 28,244,000 |
Commitments and Contingencies (Note 20) | ||
STOCKHOLDERS' EQUITY | ||
Preferred stock; authorized 5,000,000 shares, $0.01 par value; none issued | ||
Common stock; authorized 50,000,000 shares, $0.01 par value; 14,578,000 and 14,930,000 shares issued at December 31, 2016 and June 30, 2017, respectively; shares outstanding, 13,767,000 and 14,075,000 at December 31, 2016 and June 30, 2017, respectively | 132,000 | 129,000 |
Additional paid-in capital | 114,352,000 | 111,844,000 |
Accumulated deficit | (93,908,000) | (91,498,000) |
Accumulated other comprehensive loss | (357,000) | (103,000) |
Treasury stock; 811,000 and 855,000 common shares at cost at December 31, 2016 and June 30, 2017, respectively | (4,627,000) | (4,370,000) |
Total stockholders' equity | 15,592,000 | 16,002,000 |
Total liabilities and stockholders' equity | $ 43,756,000 | $ 44,246,000 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Balance Sheets Parenthetical [Abstract] | ||
Allowance for doubtful accounts receivable | $ 165,000 | $ 341,000 |
Allowance for doubtful accounts financial receivables current | $ 0 | $ 0 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares issued | ||
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares issued | 14,930,000 | 14,578,000 |
Common stock, shares outstanding | 14,075,000 | 13,767,000 |
Treasury stock, shares | 855,000 | 811,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Revenue: | ||||
Products | $ 6,375,000 | $ 4,918,000 | $ 10,709,000 | $ 11,200,000 |
Services | 4,331,000 | 3,986,000 | 7,996,000 | 8,181,000 |
Revenue, Net, Total | 10,706,000 | 8,904,000 | 18,705,000 | 19,381,000 |
Cost of revenue: | ||||
Cost of products | 3,427,000 | 3,142,000 | 6,242,000 | 7,328,000 |
Cost of services | 1,738,000 | 1,037,000 | 2,772,000 | 2,130,000 |
Cost of Goods and Services Sold, Total | 5,165,000 | 4,179,000 | 9,014,000 | 9,458,000 |
Gross profit | 5,541,000 | 4,725,000 | 9,691,000 | 9,923,000 |
Operating expenses: | ||||
Selling, general and administrative expenses | 5,189,000 | 5,019,000 | 9,971,000 | 9,805,000 |
Research and development expenses | 854,000 | 1,192,000 | 2,092,000 | 2,322,000 |
Operating Expenses, Total | 6,043,000 | 6,211,000 | 12,063,000 | 12,127,000 |
Loss from operations | (502,000) | (1,486,000) | (2,372,000) | (2,204,000) |
Interest income | 54,000 | 76,000 | 110,000 | 153,000 |
Interest expense | (75,000) | (87,000) | (148,000) | (144,000) |
Other income, net | (1,000) | |||
Net loss | $ (524,000) | $ (1,497,000) | $ (2,410,000) | $ (2,195,000) |
Net loss per share - basic and diluted | $ (0.04) | $ (0.12) | $ (0.18) | $ (0.17) |
Weighted average common shares outstanding - basic and diluted | 13,450,000 | 12,939,000 | 13,356,000 | 12,917,000 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (524,000) | $ (1,497,000) | $ (2,410,000) | $ (2,195,000) |
Other comprehensive (loss) income,net: | ||||
Unrealized (loss) gain on investments | (11,000) | 4,000 | 4,000 | |
Reclassification of net realized investment (gains) losses included in net loss | ||||
Foreign currency translation adjustment | (238,000) | 145,000 | (258,000) | 193,000 |
Total other comprehensive loss | (238,000) | 134,000 | (254,000) | 197,000 |
Comprehensive loss | $ (762,000) | $ (1,363,000) | $ (2,664,000) | $ (1,998,000) |
Condensed Consolidated Stateme6
Condensed Consolidated Statement of Changes in Stockholders' Equity (Unaudited) - 6 months ended Jun. 30, 2017 - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Treasury Stock [Member] | Total |
Balance at Dec. 31, 2016 | $ 129,000 | $ 111,844,000 | $ (91,498,000) | $ (103,000) | $ (4,370,000) | $ 16,002,000 |
Balance, shares at Dec. 31, 2016 | 14,578,000 | |||||
Net loss | (2,410,000) | (2,410,000) | ||||
Foreign currency translation adjustment | (258,000) | (258,000) | ||||
Unrealized gain on investments | 4,000 | 4,000 | ||||
Shares issued pursuant to exercise of stock options | $ 3,000 | 1,211,000 | 1,214,000 | |||
Shares issued pursuant to exercise of stock options, shares | 257,000 | |||||
Issuance of restricted stock | ||||||
Issuance of restricted stock, shares | 145,000 | |||||
Shares withheld pursuant to exercise of stock options and restricted stock | (257,000) | (257,000) | ||||
Forfeiture of restricted shares | ||||||
Forfeiture of restricted shares, shares | (50,000) | |||||
Stock based compensation - restricted stock | 854,000 | 854,000 | ||||
Stock based compensation - options and performance shares | 443,000 | 443,000 | ||||
Balance at Jun. 30, 2017 | $ 132,000 | $ 114,352,000 | $ (93,908,000) | $ (357,000) | $ (4,627,000) | $ 15,592,000 |
Balance, shares at Jun. 30, 2017 | 14,930,000 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash flows from operating activities: | ||
Net loss | $ (2,410,000) | $ (2,195,000) |
Adjustments to reconcile net loss to cash used in operating activities: | ||
Bad debt (recovery) expense | 207,000 | (103,000) |
Stock-based compensation expense | 1,297,000 | 1,027,000 |
Depreciation and amortization | 393,000 | 354,000 |
Inventory reserve | 183,000 | 120,000 |
Other non-cash items | (31,000) | 36,000 |
Changes in: | ||
Accounts receivable | 1,302,000 | 797,000 |
Financing receivables | 666,000 | 72,000 |
Inventory | 1,153,000 | 1,629,000 |
Prepaid expenses and other assets | (559,000) | (127,000) |
Deferred costs | 802,000 | (1,446,000) |
Deferred revenue | 2,027,000 | 1,232,000 |
Accounts payable and accrued expenses | 660,000 | (1,413,000) |
Net cash (used in) provided by operating activities | 5,690,000 | (17,000) |
Cash flows from investing activities: | ||
Capital expenditures | (187,000) | (278,000) |
Purchase of investments | (305,000) | (377,000) |
Proceeds from the sale and maturities of investments | 362,000 | 371,000 |
Net cash used in investing activities | (130,000) | (284,000) |
Cash flows from financing activities: | ||
Borrowings under revolving credit facility | 11,655,000 | |
Repayments under revolving credit facility | (14,648,000) | |
Proceeds from exercise of stock options | 1,214,000 | 19,000 |
Net cash provided by (used in) financing activities | (1,779,000) | 19,000 |
Effect of foreign exchange rate changes on cash and cash equivalents | (303,000) | 24,000 |
Net (decrease) increase in cash and cash equivalents | 3,478,000 | (258,000) |
Cash and cash equivalents - beginning of period | 4,972,000 | 4,489,000 |
Cash and cash equivalents - end of period | 8,450,000 | 4,231,000 |
Cash paid for: | ||
Taxes | ||
Interest | 89,000 | 85,000 |
Noncash investing and financing activities: | ||
Unrealized gain on investments | 4,000 | 4,000 |
Value of shares withheld pursuant to stock issuance | $ 257,000 | $ 163,000 |
Description of the Company and
Description of the Company and Basis of Presentation | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Description of the Company and Basis of Presentation | NOTE 1 - DESCRIPTION OF THE COMPANY AND BASIS OF PRESENTATION Description of the Company I.D. Systems, Inc. and its subsidiaries (collectively, the “Company,” “we,” “our” or “us”) develop, market and sell wireless machine-to-machine (“M2M”) solutions for managing and securing high-value enterprise assets. These assets include industrial vehicles such as forklifts and 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 systems utilize radio frequency identification (RFID), Wi-Fi, satellite or cellular communications, and sensor technology and software to address the needs of organizations to control, track, monitor and analyze their assets. Our cloud-based software application 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, revenue, productivity and efficiency of their operations. The Company outsources its hardware manufacturing operations to contract manufacturers. I.D. Systems, Inc. was incorporated in Delaware in 1993 and commenced operations in January 1994. Basis of Presentation and Liquidity The unaudited interim condensed consolidated financial statements include the accounts of I.D. Systems, Inc. and its wholly owned subsidiaries, Asset Intelligence, LLC (“AI”), I.D. Systems GmbH (“IDS GmbH”) and I.D. Systems (UK) Ltd (formerly Didbox Ltd.) (“IDS Ltd”) (collectively referred to as the “Company”). All material intercompany balances and transactions have been eliminated in consolidation. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, such statements include all adjustments (consisting only of normal recurring items) which are considered necessary for a fair presentation of the consolidated financial position of the Company as of June 30, 2017, the consolidated results of its operations for the three-month and six-month periods ended June 30, 2016 and 2017, the consolidated change in stockholders’ equity for the six-month period ended June 30, 2017 and the consolidated cash flows for the six-month periods ended June 30, 2016 and 2017. The results of operations for the three-month period ended June 30, 2017 are not necessarily indicative of the operating results for the full year. These financial statements should be read in conjunction with the audited consolidated financial statements and related disclosures for the year ended December 31, 2016 included in the Company’s Annual Report on Form 10-K for the year then ended. As of June 30, 2017, we had cash (including restricted cash), cash equivalents and marketable securities of $10.3 million and working capital of $10.1 million. The Company’s primary sources of cash are cash flows from operating activities and the Company’s holdings of cash, cash equivalents and investments and available borrowing capacity under our revolving credit facility. To date, the Company has not generated sufficient cash flows solely from operating activities, although we had positive cash flows in the current quarter, to fund its operations. We believe our available working capital, anticipated level of future revenues, expected cost savings from expense reduction initiatives implemented in the fourth quarter of 2016, expected cash flows from operations, available borrowings under the revolving credit facility and net proceeds of approximately $16.3 million raised from an underwritten public offering that closed on July 17, 2017 will provide sufficient funds to cover capital requirements for at least the next twelve months. |
Cash and Cash Equivalents
Cash and Cash Equivalents | 6 Months Ended |
Jun. 30, 2017 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | NOTE 2 - CASH AND CASH EQUIVALENTS The Company considers all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents unless they are legally or contractually restricted. The Company’s cash and cash equivalent balances exceed Federal Deposit Insurance Corporation (FDIC) limits. |
Use of Estimates
Use of Estimates | 6 Months Ended |
Jun. 30, 2017 | |
Use Of Estimates | |
Use of Estimates | NOTE 3 - USE OF ESTIMATES The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company continually evaluates estimates used in the preparation of the financial statements for reasonableness. The most significant estimates relate to stock-based compensation arrangements, measurements of fair value, realization of deferred tax assets, the impairment of tangible and intangible assets, inventory reserves, allowance for doubtful accounts, warranty reserves and deferred revenue and costs. Actual results could differ from those estimates. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | NOTE 4 - INVESTMENTS The Company’s investments include debt securities, U.S. Treasury Notes, government and state agency bonds and corporate bonds, 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, 2016 and June 30, 2017, all of the Company’s investments are classified as available for sale. Available for sale securities are measured at fair value based on quoted market values of the securities, with the unrealized gain and (losses) reported as comprehensive income or (loss). For the three- and six-month periods ended June 30, 2016, the Company reported unrealized loss gain of $(11,000) and $4,000, respectively, and for the three- and six-month periods ended June 30, 2017, the Company reported unrealized (loss) gain of $-0- and $4,000, 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. All other securities are classified as long-term. The following table summarizes the estimated fair value of investment in debt securities designated as available for sale classified by the contractual maturity date of the security as of June 30, 2017: Fair Value Due within one year $ 20,000 Due one year through three years 1,384,000 Due after three years 155,000 $ 1,559,000 The cost, gross unrealized gains (losses) and fair value of available for sale securities by major security types as of December 31, 2016 and June 30, 2017 are as follows: Unrealized Unrealized Fair June 30, 2017 (Unaudited) Cost Gain Loss Value Investments - short term Available for sale Corporate bonds and commercial paper $ 20,000 $ - - $ 20,000 Total investments - short term 20,000 - - 20,000 Investments - long term Available for sale U.S. Treasury Notes 1,064,000 - (4,000 ) 1,060,000 Government agency bonds 100,000 - (1,000 ) 99,000 Corporate bonds and commercial paper 382,000 - (2,000 ) 380,000 Total investments - long term 1,546,000 - (7,000 ) 1,539,000 Total investments $ 1,566,000 $ - $ (7,000 ) $ 1,559,000 Unrealized Unrealized Fair December 31, 2016 Cost Gain Loss Value Investments - short term Available for sale U.S. Treasury Notes $ 40,000 - - $ 40,000 Government agency bonds 50,000 - - 50,000 Corporate bonds and commercial paper 25,000 - - 25,000 Total investments - short term 115,000 - - 115,000 Investments - long term Available for sale U.S. Treasury Notes 1,027,000 - (7,000 ) 1,020,000 Government agency bonds 100,000 - (1,000 ) 99,000 Corporate bonds and commercial paper 383,000 - (3,000 ) 380,000 Total investments - long term 1,510,000 - (11,000 ) 1,499,000 Total investments $ 1,625,000 $ - $ (11,000 ) $ 1,614,000 The Company utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those levels: ● Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities. ● Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. ● Level 3: Unobservable inputs that reflect the reporting entity’s estimates of market participants’ assumptions. As of December 31, 2016 and June 30, 2017, all of the Company’s investments are classified as Level 1 fair value measurements. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2017 | |
Deferred Revenue Disclosure [Abstract] | |
Revenue Recognition | 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, hosting and support agreements; and (iv) periodically, 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. 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 Company amortized and recognized $1,201,000 and $2,605,000 during the three- and six-month periods ended June 30, 2016, respectively, and $1,487,000 and $3,009,000 during the three- and six-month periods ended June 30, 2017, respectively. The service revenue for our remote asset monitoring equipment relates to charges for monthly messaging usage and value-added features charges. The usage fee is a monthly fixed charge based on the expected utilization according to the rate plan chosen by the customer. Service revenue generally commences upon equipment installation and customer acceptance, and is recognized over the period such services are provided. Revenue from remote asset monitoring equipment activation fees is deferred and amortized over the life of the contract. Spare parts sales are reflected in product revenues and recognized on the date of customer receipt of the part. The Company also derives revenue under leasing arrangements. Such arrangements provide for monthly payments covering the system sale, maintenance, support and interest. These arrangements meet the criteria to be accounted for as sales-type leases. Accordingly, an asset is established for the sales-type lease receivable at the present value of the expected lease payments and revenue is deferred and recognized over the service contract, as described above. Maintenance revenues and interest income are recognized monthly over the lease term. The Company also enters into post-contract maintenance, hosting 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, hosting and support contracts. Under certain customer contracts, the Company invoices progress billings once certain milestones are met. The milestone terms vary by customer and can include the receipt of the customer purchase order, delivery, installation and launch. As the systems are delivered, and services are performed, and all of the criteria for revenue recognition are satisfied, the Company recognizes revenue. If the amount of revenue recognized for financial reporting purposes is greater than the amount invoiced, an unbilled receivable is recorded. If the amount invoiced is greater than the amount of revenue recognized for financial reporting purposes, deferred revenue is recorded. As of December 31, 2016 and June 30, 2017, unbilled receivables were $-0-. Sales taxes collected from customers and remitted to governmental authorities are accounted for on a net basis and therefore are excluded from revenues in the Condensed Consolidated Statements of Operations. In April 2015, the Company entered into a development project with Avis Budget Car Rental, LLC (“ABCR”), a subsidiary of Avis Budget Group (“Avis”). The Company recognized milestone revenue of $-0- and $255,000 during the three- and six-month periods ended June 30, 2016, respectively, from the completion of milestones in accordance with the milestone method of revenue recognition. Milestone payments are recognized as revenue upon achievement of the milestone only if the following conditions are met: (i) there is substantive uncertainty at the date of entering into the arrangement that the milestone would be achieved; (ii) the milestone is commensurate with either the vendor’s performance to achieve the milestone or the enhancement of the value of the delivered item by the vendor; (iii) the milestone relates solely to past performance; and (iv) the milestone is reasonable in relation to the effort expended to achieve the milestone. This development project was completed during 2016. On March 18, 2017 (the “SOW#4 Effective Date”), the Company entered into a statement of work (the “SOW#4”) with ABCR for the Company’s cellular-enabled rental fleet car management system (the “System”). The SOW#4 provides for a period of exclusivity commencing on the SOW#4 Effective Date and ending fourteen months after the SOW#4 Effective Date, which may be extended in six-month increments by Avis under certain conditions. Avis has the right to cancel or accept the System and pay a lower price if the System cannot retrieve the necessary vehicle data from twenty-five makes and models six months after the SOW#4 Effective Date. Pursuant to the SOW#4, the Company will also provide ABCR with services for ongoing maintenance and support of the System (“Maintenance Services”) for an initial period of sixty months from installation of the equipment. ABCR has the option to renew such period for an additional twelve months upon its expiry, and then after such 12-month period, ABCR can purchase additional Maintenance Services on a month-to-month basis (during which ABCR can terminate the Maintenance Services) for up to forty-eight additional months. ABCR has agreed to pay approximately $21,270,000 to the Company for the System and maintenance and support services which cover 50,000 units. ABCR has an option to purchase additional units. Under the terms of the SOW#4, the Company is entitled to an upfront payment of $3,290,000, which is comprised of a $2,000,000 initial payment for the units to be delivered, $902,000 for development of additional system enhancements and $388,000 for production readiness development. The Company invoiced the upfront payment which is included in current deferred revenue at June 30, 2017. If ABCR exercises its right to terminate the agreement if the System is not able to retrieve the necessary vehicle date from twenty-five makes and models six months after the SOW#4 Effective Date, approximately $1,785,000 of the upfront payment for the units would be refundable. The Company recognizes revenue on the development project on a proportional method performance basis, as determined by the relationship of actual labor and material costs incurred to date compared to the estimated total project costs. Estimates of total project costs are reviewed and revised during the term of the project. Revisions to project costs estimates, where applicable, are recorded in the period in which the facts that give rise to such changes become known. The Company recognized revenue of $772,000 during the three- and six-month periods ended June 30, 2017, respectively. The SOW#4 may be terminated by ABCR for cause (which is generally the Company’s material breach of its obligations under the SOW#4), for convenience (subject to a termination fee), upon a material adverse change to the Company, or for intellectual property infringement. The Company does not have the right to unilaterally terminate the SOW#4. In the event that ABCR terminates the SOW#4, then ABCR would be liable to the Company for the net present value of all future remaining charges under the SOW#4 at a negotiated discount rate per annum, with the payment due on the effective date of termination. Deferred revenue consists of the following: December 31, 2016 June 30, 2017 (Unaudited) Deferred activation fees $ 385,000 $ 343,000 Deferred revenue 230,000 2,651,000 Deferred maintenance and hosting revenue 3,049,000 3,650,000 Deferred remote asset management product revenue 13,599,000 12,646,000 17,263,000 19,290,000 Less: Current portion 7,197,000 10,999,000 Deferred revenue - less current portion $ 10,066,000 $ 8,291,000 |
Financing Receivables
Financing Receivables | 6 Months Ended |
Jun. 30, 2017 | |
Receivables [Abstract] | |
Financing Receivables | NOTE 6 - FINANCING RECEIVABLES Financing receivables consists of sales-type lease receivables from the sale of the Company’s products and services. The present value of net investment in sales-type lease receivable is principally for three- to five-year leases of the Company’s products and is reflected net of unearned interest income of $293,000 and $232,000 at December 31, 2016 and June 30, 2017, respectively, at a weighted-average discount rate of 5%. Scheduled maturities of sales-type lease minimum lease payments outstanding as of June 30, 2017 are as follows: Year ending December 31: July - December 2017 $ 857,000 2018 1,289,000 2019 739,000 2020 479,000 2021 152,000 Thereafter 14,000 3,530,000 Less: Current portion 1,634,000 Sales-type lease receivable - less current portion $ 1,896,000 The allowance for doubtful accounts represents the Company’s best estimate of the amount of credit losses in the Company’s existing sales-type lease receivables. The allowance for doubtful accounts is determined on an individual lease basis if it is probable that the Company will not collect all principal and interest contractually due. The Company considers its customers’ financial condition and historical payment patterns in determining the customers’ probability of default. The impairment is measured based on the present value of expected future cash flows discounted at the lease’s effective interest rate. There were no impairment losses recognized for the three- and six-month-periods ended June 30, 2016 and 2017. The Company does not accrue interest when a lease is considered impaired. When the ultimate collectability of the principal balance of the impaired lease is in doubt, all cash receipts on impaired leases are applied to reduce the principal amount of such 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. 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 income when it is probable that the Company will collect the remaining principal and interest of an impaired lease. Leases become past due based on how recently payments have been received. |
Inventory
Inventory | 6 Months Ended |
Jun. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventory | NOTE 7 - 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 is shown net of a valuation reserve of $208,000 at December 31, 2016, and $274,000 at June 30, 2017. Inventories consist of the following: December 31, 2016 June 30, 2017 (Unaudited) Components $ 1,183,000 $ 1,194,000 Finished goods 2,737,000 1,390,000 $ 3,920,000 $ 2,584,000 |
Fixed Assets
Fixed Assets | 6 Months Ended |
Jun. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets | NOTE 8 - FIXED ASSETS Fixed assets are stated at cost, less accumulated depreciation and amortization, and are summarized as follows: December 31, 2016 June 30, 2017 (Unaudited) Equipment $ 1,678,000 $ 964,000 Computer software and website development 5,874,000 5,591,000 Computer hardware 2,761,000 2,438,000 Furniture and fixtures 401,000 405,000 Automobiles 60,000 60,000 Leasehold improvements 181,000 181,000 10,955,000 9,639,000 Accumulated depreciation and amortization (7,880,000 ) (6,703,000 ) $ 3,075,000 $ 2,936,000 As of December 31, 2016 and June 30, 2017, the Company had expenditures of approximately $1,919,000 and $4,000, respectively, for computer software and website development which had not been placed in service. Depreciation expense is not recorded for such assets until they are placed in service. Depreciation and amortization expense of fixed assets for the three- and six-month periods ended June 30, 2016 was $143,000 and $286,000, respectively, and for the three- and six-month periods ended June 30, 2017 was $200,000 and $326,000, respectively. This includes amortization of costs associated with computer software and website development for the three- and six-month periods ended June 30, 2016 of $44,000 and $87,000, respectively, and for the three- and six-month periods ended June 30, 2017 of $114,000 and $150,000, respectively. The Company capitalizes in fixed assets the costs of software development and website development. Specifically, the assets comprise an implementation of Enterprise Resource Planning (ERP) software, enhancements to the VeriWise TM |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 6 Months Ended |
Jun. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | 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 IDS Ltd, PowerKey (the industrial vehicle monitoring products division of International Electronics, Inc. acquired by the Company in 2008) and AI as of December 31, 2016 and June 30, 2017: June 30, 2017 Useful Lives (In Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortized: Patents 11 $ 1,489,000 $ (1,015,000 ) $ 474,000 Unamortized: Customer list 104,000 - 104,000 Trademark and Tradename 61,000 - 61,000 165,000 - 165,000 Total $ 1,654,000 $ (1,015,000 ) $ 639,000 December 31, 2016 Useful Lives (In Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortized: Patents 11 $ 1,489,000 $ (948,000 ) $ 541,000 Unamortized: Customer list 104,000 - 104,000 Trademark and Tradename 61,000 - 61,000 165,000 - 165,000 Total $ 1,654,000 $ (948,000 ) $ 706,000 Amortization expense of intangible assets for the three- and six-month periods ended June 30, 2016 was $34,000 and $68,000, respectively, and for the three- and six-month periods ended June 30, 2017 was $34,000 and $67,000, respectively. Estimated future amortization expense for each of the five succeeding fiscal years for these intangible assets is as follows: Year ending December 31: July - December 2017 $ 69,000 2018 135,000 2019 135,000 2020 135,000 There have been no changes in the carrying amount of goodwill from January 1, 2017 to June 30, 2017. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | NOTE 10 - STOCK-BASED COMPENSATION Stock Option Plans The Company 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 1999 Stock Option Plan expired during 2009 and the Company cannot issue additional options under this plan. 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. There were 49,000 shares available for future issuance under the 2007 Equity Compensation Plan at June 30, 2017. 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. There were 14,000 shares available for future issuance under the 2009 Non-Employee Director Equity Compensation Plan at June 30, 2017. In June 2015, the Company adopted the 2015 Equity Compensation Plan (the “2015 Plan”) pursuant to which the Company may grant stock options, restricted stock and other equity-based awards with respect to up to an aggregate of 1,200,000 shares of common stock. There were 317,000 shares available for future issuance under the 2015 Plan at June 30, 2017. The plans are administered by the Compensation Committee of the Company’s Board of Directors, which has the authority to determine, among other things, the term during which an option may be exercised (not more than 10 years), the exercise price of an option and the vesting provisions. The Company recognizes all employee share-based payments in the statement of operations as an operating expense, based on their fair values on the applicable grant date. As a result, the Company recorded stock-based compensation expense of $83,000 and $161,000, respectively, for the three- and six-month periods ended June 30, 2016 and $108,000 and $198,000, respectively, for the three- and six-month periods ended June 30, 2017, in connection with awards made under the stock option plans. The following table summarizes the activity relating to the Company’s stock options for the six-month period ended June 30, 2017: Weighted- Weighted- Average Average Remaining Aggregate Exercise Contractual Intrinsic Options Price Term Value Outstanding at beginning of year 1,243,000 $ 5.08 Granted 349,000 6.0 Exercised (258,000 ) 4.70 Forfeited or expired (31,000 ) 8.26 Outstanding at end of period 1,303,000 $ 5.33 7 years $ 1,095,000 Exercisable at end of period 581,000 $ 5.09 4 years $ 654,000 The fair value of each option grant on the date of grant is estimated using the Black-Scholes option-pricing model reflecting the following weighted-average assumptions: June 30, 2016 2017 Expected volatility 45.5 % 42.4 % Expected life of options (in years) 4 4 Risk free interest rate 1.2 % 1.7 % Dividend yield 0 % 0 % Weighted average fair value of options granted during the period $ 1.60 $ 2.11 Expected volatility is based on historical volatility of the Company’s common stock and the expected life of options is based on historical data with respect to employee exercise periods. The fair value of options vested during the six-month periods ended June 30, 2016 and 2017 was $113,000 and $106,000, respectively. The total intrinsic value of options exercised during the six-month periods ended June 30, 2016 and 2017 was $10,000 and $351,000, respectively. As of June 30, 2017, there was approximately $1,174,000 of unrecognized compensation cost related to non-vested options granted under the Company’s stock option plans. That cost is expected to be recognized over a weighted-average period of 3.25 years. The Company estimates forfeitures at the time of valuation and reduces expense ratably over the vesting period. This estimate is adjusted periodically based on the extent to which actual forfeitures differ, or are expected to differ, from the previous estimate. Restricted Stock The Company grants restricted stock to employees, whereby the employees are contractually restricted from transferring the shares until they are vested. The stock is unvested stock at the time of grant and, upon vesting, there are no contractual restrictions on the stock. The fair value of each share is based on the Company’s closing stock price on the date of the grant. A summary of all non-vested restricted stock for six-month period ended June 30, 2017 is as follows: Weighted- Number of Average Non-vested Grant Date Shares Fair Value Restricted stock, non-vested, beginning of year 392,000 $ 5.45 Granted 145,000 6.00 Vested (44,000 ) 5.76 Forfeited (7,000 ) 5.69 Restricted stock, non-vested, end of period 486,000 $ 5.58 The Company recorded stock-based compensation expense of $285,000 and $616,000, respectively, for the three- and six-month periods ended June 30, 2016 and $411,000 and $854,000, respectively, for the three- and six-month periods ended June 30, 2017, in connection with restricted stock grants. As of June 30, 2017, there was $1,870,000 of total unrecognized compensation cost related to non-vested shares. That cost is expected to be recognized over a weighted-average period of 2.38 years. Performance Shares In January 2016, the Company granted performance shares to employees pursuant to the 2015 Plan. The shares are unvested at the time of grant and, upon vesting, there are no contractual restrictions on the shares. The vesting of the shares is subject to the achievement of performance goals during a two-year period from the date of issuance, with the ability to achieve prorated vesting of the shares during interim annual measurement periods. If the performance goals are not met, the performance shares will not vest and will automatically be returned to the plan. If the performance goals are met, then the shares will be issued to the employees. The fair value of each share is based on the Company’s closing stock price on the date of the grant. A summary of all non-vested performance shares for the six-month period ended June 30, 2017 is as follows: Weighted- Number of Average Non-vested Grant Date Shares Fair Value Performance shares, non-vested, beginning of year 261,000 $ 4.07 Granted - - Vested (100,000 ) 4.07 Forfeited (44,000 ) 4.07 Performance shares, non-vested, end of period 117,000 $ 4.07 The Company recorded stock-based compensation expense of $137,000 and $250,000, respectively, for the three- and six-month periods ended June 30, 2016 and $65,000 and $245,000, respectively, for the three- and six-month periods ended June 30, 2017, in connection with the performance share grants. As of June 30, 2017, there was $136,000 of total unrecognized compensation cost related to non-vested performance shares. That cost is expected to be recognized over a weighted-average period of 0.55 years. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Stockholders' Equity | NOTE 11 - STOCKHOLDERS’ EQUITY 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. Stock repurchase program On November 3, 2010, the Company’s Board of Directors authorized the repurchase of issued and outstanding shares of the Company’s common stock having an aggregate value of up to $3,000,000 pursuant to a share repurchase program. The repurchases under the share repurchase program are made from time to time in the open market or in privately negotiated transactions and are funded from the Company’s working capital. The amount and timing of such repurchases is dependent upon the price and availability of shares, general market conditions and the availability of cash, as determined at the discretion of the Company’s management. All shares of common stock repurchased under the Company’s share repurchase program are held as treasury stock. The Company did not purchase any shares of its common stock under the share repurchase program during the six-month period ended June 30, 2017. As of June 30, 2017, 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. Shares Withheld During the six-month periods ended June 30, 2016 and 2017, 35,000 and 44,000 shares, respectively, of the Company’s common stock were withheld to satisfy minimum tax withholding obligations in connection with the vesting of restricted shares and to pay the exercise price of stock options in the aggregate amount of $163,000 and $257,000, respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | NOTE 12 - ACCUMULATED OTHER COMPREHENSIVE LOSS Comprehensive loss includes net loss and unrealized gains or losses on available-for-sale investments and foreign currency translation gains and losses. Cumulative unrealized gains and losses on available-for-sale investments are reflected as accumulated other comprehensive loss in stockholders’ equity on the Company’s Condensed Consolidated Balance Sheets. The accumulated balances for each classification of other comprehensive loss for the six -month period ended June 30, 2017 are as follows: Unrealized Accumulated Foreign gain (losses) other currency on comprehensive items investments income Balance at January 1, 2017 $ (92,000 ) $ (11,000 ) $ (103,000 ) Net current period change (258,000 ) 4,000 (254,000 ) Balance at June 30, 2017 $ (350,000 ) $ (7,000 ) $ (357,000 ) The accumulated balances for each classification of other comprehensive loss for the six-month period ended June 30, 2016 are as follows: Unrealized Accumulated Foreign gain (losses) other currency on comprehensive items investments income Balance at January 1, 2016 $ (500,000 ) $ - $ (500,000 ) Net current period change 193,000 4,000 197,000 Balance at June 30, 2016 $ (307,000 ) $ 4,000 $ (303,000 ) 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 IDS GmbH resulted in translation gains (losses) of $193,000 and $(258,000) for the six-month periods ended June 30, 2016 and 2017, respectively, which are included in comprehensive loss in the Consolidated Statement of Changes in Stockholders’ Equity. Effective December 1, 2015, the intercompany transactions with IDS GmbH are not considered of a long-term investment nature and the effect of the exchange rate changes on the intercompany transactions are included selling, general and administrative expenses in the Condensed Consolidated Statement of Operations. Gains and losses resulting from foreign currency transactions are included in determining net income or loss. Foreign currency transactions gains (losses) for the three- and six-month periods ended June 30, 2016 of $(192,000) and $(123,000), respectively, and for the three- and six-month periods ended June 30, 2017 of $211,000 and $273,000 respectively, respectively, are included in selling, general and administrative expenses in the Condensed Consolidated Statement of Operations. |
Net Loss Per Share of Common St
Net Loss Per Share of Common Stock | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share of Common Stock | NOTE 13 - NET LOSS PER SHARE OF COMMON STOCK Net loss per share for the three- and six-month periods ended June 30, 2016 and 2017 are as follows: Three Months Ended Six Months Ended June 30, June 30, 2016 2017 2016 2017 Basic and diluted loss per share Net loss $ (1,497,000 ) $ (524,000 ) $ (2,195,000 ) $ (2,410,000 ) Weighted-average shares outstanding 12,939,000 13,450,000 12,917,000 13,356,000 Basic and diluted net loss per share $ (0.12 ) $ (0.04 ) $ (0.17 ) $ (0.18 ) 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 unvested restricted stock and performance shares awards. For the three- and six-month periods ended June 30, 2016, the basic and diluted weighted-average shares outstanding are the same, since the effect from the potential exercise of outstanding stock options, warrants and vesting of restricted stock and performance shares of 2,160,000 would have been anti-dilutive. For the three- and six-month periods ended June 30, 2017, 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 1,906,000 would have been anti-dilutive. |
Revolving Credit Facility
Revolving Credit Facility | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Revolving Credit Facility | NOTE 14 - REVOLVING CREDIT FACILITY On December 18, 2015 (the “Closing Date”), the Company and AI (collectively, the “Loan Parties”) entered into a loan and security agreement (the “Revolver”) with Siena Lending Group LLC. As of June 30, 2017, the Company had $-0- outstanding under the Revolver with availability of $912,000. The Revolver provides a revolving credit facility in an aggregate principal amount of up to $7.5 million and a maturity date of December 18, 2017 (which date may be accelerated in certain cases). Outstanding indebtedness under the Revolver may be voluntarily prepaid at any time, in whole or in part, subject to payment of an early termination premium equal to (i) 3% of the amount of such prepayment if prepayment occurs on or before December 18, 2016, or (ii) 1.5% of the amount of such prepayment if prepayment occurs after December 18, 2016 but on or before June 18, 2017, but no early termination premium is payable if prepayment occur after June 18, 2017. In addition, no early termination premium is payable if the Revolver is refinanced with Bank of America, N.A. The Company intends to use borrowings under the Revolver for a variety of purposes, including working capital and general corporate purposes. The Company has an available borrowing base under the Revolver that is subject to reserves established at the lender’s discretion of 85% of Eligible Accounts (as defined in the Revolver) and 75% of Eligible Lease Receivables (as defined in the Revolver) up to $7.5 million under the Revolver. Eligible Accounts and Eligible Lease Receivables do not include certain receivables deemed ineligible by the lender. Borrowings under the Revolver bear interest at a rate equal to the sum of 2.00% per annum plus the base rate as it is defined in the loan and security agreement governing the Revolver (the greater of (i) the Prime Rate, (ii) the Federal Funds Rate plus 0.5%, or (iii) 3.25%). The interest rate under the Revolver was 6.25% at June 30, 2017. In addition, the Company is charged an unused line fee equal to 0.50% per annum on unused amounts of the revolving credit facility and a minimum borrowing fee equal to the excess, if any, of (i) interest which would have been payable in respect of each month if, at all time during such month, the principal balance of the Revolving Loans (as defined in the Revolver) was equal to $2,000,000 over (ii) the actual interest payable in respect of such month on the Revolving Loans. The Loan Parties guarantee the payment obligations under the Revolver. Any borrowings are further secured by (i) certain equity interests owned or held by the Loan Parties and 65% of the voting stock of all present and future foreign subsidiaries of the Loan Parties and (ii) substantially all of the tangible and intangible personal property and assets of the Loan Parties. The Revolver contains a financial covenant regarding liquidity which requires the Loan Parties to maintain a minimum liquidity of (a) $3,500,000 from the Closing Date through and including January 31, 2016 and (b) $4,000,000 on February 1, 2016 or at any time thereafter. The Revolver also includes customary affirmative and negative covenants for credit facilities of this type, including limitations on our indebtedness, liens, investments, restricted payments, mergers and acquisitions, dispositions of assets, transactions with affiliates, ability to amend our organizational documents. Any failure to comply with such covenants could lead to an acceleration of our obligations under the Revolver. The Company is in compliance with the covenants under the Revolver as of June 30, 2017. |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 6 Months Ended |
Jun. 30, 2017 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Expenses | NOTE 15 - ACCOUNTS PAYABLE AND ACCRUED EXPENSES Accounts payable and accrued expenses consist of the following: December 31, 2016 June 30, 2017 (Unaudited) Accounts payable $ 6,195,000 $ 7,299,000 Accrued warranty 472,000 413,000 Accrued severance 609,000 312,000 Accrued compensation 297,000 482,000 Other current liabilities 49,000 33,000 $ 7,622,000 $ 8,539,000 Included in accounts payable and accrued expenses at December 31, 2016 and June 30, 2017 is accrued severance of $609,000 and $312,000, respectively, to Kenneth Ehrman and Norman L. Ellis, the former Chief Executive Officer and Chief Operating Officer of the Company, respectively. The accrued severance is payable in equal monthly installments of approximately $37,000 as of June 30, 2017. The Company’s products are warranted against defects in materials and workmanship for a period of 12 months from the date of acceptance of the product by the customer. The customers may purchase an extended warranty providing coverage up to a maximum of 60 months. A provision for estimated future warranty costs is recorded for expected or historical warranty matters related to equipment shipped and is included in accounts payable and accrued expenses in the Condensed Consolidated Balance Sheets as of December 31, 2016 and June 30, 2017. The following table summarizes warranty activity for the six-month periods ended June 30, 2016 and 2017: Six Months Ended June 30, 2016 2017 Accrued warranty reserve, beginning of period $ 614,000 $ 472,000 Accrual for product warranties issued 306,000 56,000 Product replacements and other warranty expenditures (206,000 ) (35,000 ) Expiration of warranties (175,000 ) (80,000 ) Accrued warranty reserve, end of period $ 539,000 $ 413,000 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 16 - INCOME TAXES The Company accounts for income taxes under the asset and liability approach. Deferred tax assets and liabilities are recognized for the expected future tax consequences attributed to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to reverse. As of June 30, 2017, the Company had provided a valuation allowance to fully reserve its net operating loss carryforwards and other items giving rise to deferred tax assets, primarily as a result of anticipated net losses for income tax purposes. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | NOTE 17 - FAIR VALUE OF FINANCIAL INSTRUMENTS Cash and cash equivalents and investments in securities are carried at fair value. Financing receivables and capital lease obligation are carried at cost, which is not materially different than fair value. Accounts receivable, accounts payable and other liabilities approximate their fair values due to the short period to maturity of these instruments. |
Concentration of Customers
Concentration of Customers | 6 Months Ended |
Jun. 30, 2017 | |
Risks and Uncertainties [Abstract] | |
Concentration of Customers | NOTE 18 - CONCENTRATION OF CUSTOMERS For the six-month period ended June 30, 2017 and as of June 30, 2017, two customers accounted for 18% and 10% of the Company’s revenue and one customer accounted for 22% of the Company’s accounts receivable. One customer accounted for 12% of finance receivables as of June 30, 2017. For the six-month period ended June 30, 2016 and as of June 30, 2016, one customer accounted for 17% of the Company’s revenue and 10% of the Company’s accounts receivable, respectively. |
Wholly Owned Foreign Subsidiari
Wholly Owned Foreign Subsidiaries | 6 Months Ended |
Jun. 30, 2017 | |
Wholly Owned Foreign Subsidiaries [Abstract] | |
Wholly Owned Foreign Subsidiaries | NOTE 19 - WHOLLY OWNED FOREIGN SUBSIDIARIES The financial statements of the Company’s wholly owned German subsidiary, IDS GmbH, and United Kingdom subsidiary, IDS Ltd, are consolidated with the financial statements of I.D. Systems, Inc. The net revenue and net loss for IDS GmbH included in the Condensed Consolidated Statement of Operations are as follows: For the Three Months Ended For the Six Months Ended June 30, June 30, 2016 2017 2016 2017 Net revenue $ 661,000 $ 236,000 $ 1,468,000 $ 451,000 Net income 165,000 60,000 549,000 55,000 Total assets of IDS GmbH were $1,012,000 and $874,000 as of December 31, 2016 and June 30, 2017, respectively. IDS GmbH operates in a local currency environment using the Euro as its functional currency. The net revenue and net loss for IDS Ltd included in the Condensed Consolidated Statement of Operations are as follows: For the Three Months Ended For the Six Months Ended June 30, June 30, 2016 2017 2016 2017 Net revenue $ 75,000 $ 336,000 $ 141,000 $ 407,000 Net (loss) income (161,000 ) 141,000 (264,000 ) 79,000 Total assets of IDS Ltd were $1,130,000 and $1,240,000 as of December 31, 2016 and June 30, 2017, respectively. IDS Ltd operates in a local currency environment using the British Pound as its functional currency. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 20 - COMMITMENTS AND CONTINGENCIES Except for normal operating leases, the Company is not currently subject to any material commitments. Contingencies On June 12, 2017, ACF FinCo I LP (“ACF”) filed a lawsuit against us in the District Court for Dallas County, Texas. The complaint alleges that ACF is the successor-in-interest to McDonald Technologies International Inc. (“MTI”), one of our former suppliers, and alleges one cause of action for breach of a May 2015 Master Services Agreement pursuant to which we purchased certain products manufactured and services rendered by MTI. The complaint seeks approximately $2.0 million in damages for amounts allegedly due by us under this agreement, plus interest and attorney’s fees. On July 7, 2017, we filed our answer denying any liability to ACF and asserting various defenses to ACF’s claims against us. The lawsuit is currently in active discovery. We believe that the lawsuit is without merit and intend to continue to vigorously defend ourselves in this matter. Severance agreements The Company entered into severance agreements with two 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 months, (ii) continued healthcare coverage during the severance period, (iii) partial accelerated vesting of the executive’s previously granted stock options and restricted stock awards, and (iv) as applicable, an award of “Performance Shares” under the Restricted Stock Unit Award Agreement previously entered into between the Company and the executive. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | NOTE 21 - RECENT ACCOUNTING PRONOUNCEMENTS In May 2017, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2017-09, “Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting”. The FASB issued the update to provide clarity and reduce the cost and complexity when applying the guidance in Topic 718. The amendments in this update provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. This ASU will be effective for public companies for fiscal years beginning after December 15, 2017, including interim periods. Early adoption is permitted. The Company is currently evaluating the impact of this ASU to the consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment,” which simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. Under the amendments in ASU 2017-04, an entity should recognize an impairment charge for the amount by which the carrying amount of a reporting unit exceeds its fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The updated guidance requires a prospective adoption. The guidance is effective beginning fiscal year 2021. Early adoption is permitted. The Company is currently assessing the impact of this new accounting pronouncement on its results of operations and financial position. In November 2016, the FASB issued ASU No. 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash,” which requires the inclusion of restricted cash with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This ASU is effective for public business entities for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is currently evaluating the impact of this ASU to the consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments,” which provides clarification on how companies present and classify certain cash receipts and cash payments in the statement of cash flows. This ASU will be effective for fiscal periods beginning after December 15, 2017 and interim periods within those fiscal years. Early adoption is permitted. If an entity early adopts the amendments in an interim period, any adjustments must be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. The Company is currently evaluating the impact of this ASU to the consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments,” which amends the guidance on measuring credit losses on financial assets held at amortized cost. The amendment is intended to address the issue that the previous “incurred loss” methodology was restrictive for an entity’s ability to record credit losses based on not yet meeting the “probable” threshold. The new language will require these assets to be valued at amortized cost presented at the net amount expected to be collected with a valuation provision. This update standard is effective for fiscal years beginning after December 15, 2019. The Company is currently evaluating the impact of this ASU to the consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, “Compensation - Stock Compensation” (Topic 718), which includes provisions intended to simplify various aspects related to how share-based payments are accounted for and presented in the financial statements. This ASU is effective for annual periods beginning after December 15, 2016, with early adoption permitted. The adoption of this guidance did not have a material impact on the Company’s financial results. In February 2016, the FASB issued ASU No. 2016-02, “Leases” (Topic 842), which requires lessees to recognize the following for all leases (with the exception of short-term leases) at the commencement date: a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. The revised guidance must be applied on a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The revised guidance is effective for the Company beginning in the quarter ending March 31, 2019. The Company is currently evaluating the impact of this ASU on the consolidated financial statements. In July 2015, the FASB issued ASU No. 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory,” which requires entities to measure most inventory “at the lower of cost and net realizable value (“NRV”),” thereby simplifying the current guidance under which an entity must measure inventory at the lower of cost or market. Under the new guidance, inventory is “measured at the lower of cost and net realizable value,” which eliminates the need to determine replacement cost and evaluate whether it is above the ceiling (NRV) or below the floor (NRV less a normal profit margin). The guidance defines NRV as the “estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation.” The guidance is effective for annual periods beginning after December 15, 2016, and interim periods therein. Early application is permitted. The adoption of this guidance did not have a material impact on the Company’s financial results. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers” (Topic 606). This ASU is intended to clarify the principles for recognizing revenue by removing inconsistencies and weaknesses in revenue requirements; providing a more robust framework for addressing revenue issues; improving comparability of revenue recognition practices across entities, industries, jurisdictions and capital markets; and providing more useful information to users of financial statements through improved revenue disclosure requirements. The new standard is required to be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying it recognized at the date of initial application. In July 2015, the FASB approved a deferral of the ASU effective date from annual and interim periods beginning after December 15, 2016 to annual and interim periods beginning after December 15, 2017, while allowing for early adoption for fiscal periods after December 15, 2016. The Company is currently evaluating the impact of this ASU on the consolidated financial statements. The new revenue standard provides the option between two different methods of adoption. The full retrospective method calls for the Company to present each prior reported period shown in the financial statements under the new guidance. The modified retrospective method requires the Company to calculate the cumulative effect of applying the new guidance as of the date of adoption via adjustment to retained earnings. The Company continues to assess the impact the new revenue standard will have on its consolidated financial statements and has not yet decided on which adoption alternative to apply upon adoption in the first quarter of 2018. As part of our ongoing evaluations, the Company does not expect the adoption of the new revenue standard to have a significant impact on our consolidated financial statements as the revenue recognition of the majority of transactions under our current policy are expected to be appropriate under the guidance of the new revenue standard. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 22 – SUBSEQUENT EVENTS Public Offering On July 17, 2017, the Company closed an underwritten public offering consisting of 2,608,695 shares of common stock at a price per share of $5.75. In addition, the underwriters of the public offering exercised in full their option to purchase an additional 391,304 shares of common stock. Including this option exercise, the aggregate gross proceeds from the offering of a total of 2,999,999 shares of common stock, before deducting discounts and commissions and offering expenses, were approximately $17.3 million. Net proceeds from the public offering were approximately $16.3 million. The Company used a portion of the net proceeds from the offering to fund the Keytroller Acquisition (as defined below) and intends to use the remaining portion of the net proceeds for general corporate purposes. Keytroller Acquisition On July 31, 2017, the Company, together with its wholly-owned subsidiary, Keytroller, LLC, a Delaware limited liability company (the “Purchaser”), completed the acquisition of substantially all of the assets of Keytroller, LLC, a Florida limited liability company (“Keytroller”), a manufacturer and marketer of a wide range of electronic products for managing forklifts, construction vehicles, and other industrial equipment, pursuant to an asset purchase agreement, dated as of July 11, 2017, by and among the Company, the Purchaser, Keytroller and the principals of Keytroller party thereto (the “Keytroller Acquisition”). Consideration for the Keytroller Acquisition included (i) $7,098,215.99 in cash paid at closing, (ii) 295,902 shares of our common stock issued at closing, (iii) up to a total of $3 million of shares of our common stock as earn-out payments, computed based on a per share price equal to the volume weighted average price of our common stock on the NASDAQ Global Market during the ten consecutive trading days ending on the third trading day prior to the closing date, based on the performance of the acquired business for the two years following closing, and (iv) the assumption of certain liabilities of Keytroller. The Keytroller Acquisition will be accounted for by using the acquisition method of accounting and the purchase price paid in the Keytroller Acquisition will be assigned to the net assets acquired based on the fair value of such assets and liabilities at the date of the Keytroller Acquisition. |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Fair Value of Available for Sale Securities Excluding Mutual Funds | The following table summarizes the estimated fair value of investment in debt securities designated as available for sale classified by the contractual maturity date of the security as of June 30, 2017: Fair Value Due within one year $ 20,000 Due one year through three years 1,384,000 Due after three years 155,000 $ 1,559,000 |
Schedule of Available-for-sale Securities Reconciliation | The cost, gross unrealized gains (losses) and fair value of available for sale securities by major security types as of December 31, 2016 and June 30, 2017 are as follows: Unrealized Unrealized Fair June 30, 2017 (Unaudited) Cost Gain Loss Value Investments - short term Available for sale Corporate bonds and commercial paper $ 20,000 $ - - $ 20,000 Total investments - short term 20,000 - - 20,000 Investments - long term Available for sale U.S. Treasury Notes 1,064,000 - (4,000 ) 1,060,000 Government agency bonds 100,000 - (1,000 ) 99,000 Corporate bonds and commercial paper 382,000 - (2,000 ) 380,000 Total investments - long term 1,546,000 - (7,000 ) 1,539,000 Total investments $ 1,566,000 $ - $ (7,000 ) $ 1,559,000 Unrealized Unrealized Fair December 31, 2016 Cost Gain Loss Value Investments - short term Available for sale U.S. Treasury Notes $ 40,000 - - $ 40,000 Government agency bonds 50,000 - - 50,000 Corporate bonds and commercial paper 25,000 - - 25,000 Total investments - short term 115,000 - - 115,000 Investments - long term Available for sale U.S. Treasury Notes 1,027,000 - (7,000 ) 1,020,000 Government agency bonds 100,000 - (1,000 ) 99,000 Corporate bonds and commercial paper 383,000 - (3,000 ) 380,000 Total investments - long term 1,510,000 - (11,000 ) 1,499,000 Total investments $ 1,625,000 $ - $ (11,000 ) $ 1,614,000 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Deferred Revenue Disclosure [Abstract] | |
Schedule of Deferred Revenue | Deferred revenue consists of the following: December 31, 2016 June 30, 2017 (Unaudited) Deferred activation fees $ 385,000 $ 343,000 Deferred revenue 230,000 2,651,000 Deferred maintenance and hosting revenue 3,049,000 3,650,000 Deferred remote asset management product revenue 13,599,000 12,646,000 17,263,000 19,290,000 Less: Current portion 7,197,000 10,999,000 Deferred revenue - less current portion $ 10,066,000 $ 8,291,000 |
Financing Receivables (Tables)
Financing Receivables (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Receivables [Abstract] | |
Schedule of Capital Leases, Future Minimum Payments | Scheduled maturities of sales-type lease minimum lease payments outstanding as of June 30, 2017 are as follows: Year ending December 31: July - December 2017 $ 857,000 2018 1,289,000 2019 739,000 2020 479,000 2021 152,000 Thereafter 14,000 3,530,000 Less: Current portion 1,634,000 Sales-type lease receivable - less current portion $ 1,896,000 |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consist of the following: December 31, 2016 June 30, 2017 (Unaudited) Components $ 1,183,000 $ 1,194,000 Finished goods 2,737,000 1,390,000 $ 3,920,000 $ 2,584,000 |
Fixed Assets (Tables)
Fixed Assets (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Fixed Assets | Fixed assets are stated at cost, less accumulated depreciation and amortization, and are summarized as follows: December 31, 2016 June 30, 2017 (Unaudited) Equipment $ 1,678,000 $ 964,000 Computer software and website development 5,874,000 5,591,000 Computer hardware 2,761,000 2,438,000 Furniture and fixtures 401,000 405,000 Automobiles 60,000 60,000 Leasehold improvements 181,000 181,000 10,955,000 9,639,000 Accumulated depreciation and amortization (7,880,000 ) (6,703,000 ) $ 3,075,000 $ 2,936,000 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill | The following table summarizes identifiable intangible assets of the Company, which include identifiable intangible assets from the acquisition of IDS Ltd, PowerKey (the industrial vehicle monitoring products division of International Electronics, Inc. acquired by the Company in 2008) and AI as of December 31, 2016 and June 30, 2017: June 30, 2017 Useful Lives (In Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortized: Patents 11 $ 1,489,000 $ (1,015,000 ) $ 474,000 Unamortized: Customer list 104,000 - 104,000 Trademark and Tradename 61,000 - 61,000 165,000 - 165,000 Total $ 1,654,000 $ (1,015,000 ) $ 639,000 December 31, 2016 Useful Lives (In Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortized: Patents 11 $ 1,489,000 $ (948,000 ) $ 541,000 Unamortized: Customer list 104,000 - 104,000 Trademark and Tradename 61,000 - 61,000 165,000 - 165,000 Total $ 1,654,000 $ (948,000 ) $ 706,000 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Estimated future amortization expense for each of the five succeeding fiscal years for these intangible assets is as follows: Year ending December 31: July - December 2017 $ 69,000 2018 135,000 2019 135,000 2020 135,000 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Stock Options Activity | The following table summarizes the activity relating to the Company’s stock options for the six-month period ended June 30, 2017: Weighted- Weighted- Average Average Remaining Aggregate Exercise Contractual Intrinsic Options Price Term Value Outstanding at beginning of year 1,243,000 $ 5.08 Granted 349,000 6.0 Exercised (258,000 ) 4.70 Forfeited or expired (31,000 ) 8.26 Outstanding at end of period 1,303,000 $ 5.33 7 years $ 1,095,000 Exercisable at end of period 581,000 $ 5.09 4 years $ 654,000 |
Schedule of Fair Value Stock Option Assumption | The fair value of each option grant on the date of grant is estimated using the Black-Scholes option-pricing model reflecting the following weighted-average assumptions: June 30, 2016 2017 Expected volatility 45.5 % 42.4 % Expected life of options (in years) 4 4 Risk free interest rate 1.2 % 1.7 % Dividend yield 0 % 0 % Weighted average fair value of options granted during the period $ 1.60 $ 2.11 |
Schedule of Non-vested Share Activity | A summary of all non-vested restricted stock for six-month period ended June 30, 2017 is as follows: Weighted- Number of Average Non-vested Grant Date Shares Fair Value Restricted stock, non-vested, beginning of year 392,000 $ 5.45 Granted 145,000 6.00 Vested (44,000 ) 5.76 Forfeited (7,000 ) 5.69 Restricted stock, non-vested, end of period 486,000 $ 5.58 |
Schedule of Non-vested Performance-based Units Activity | A summary of all non-vested performance shares for the six-month period ended June 30, 2017 is as follows: Weighted- Number of Average Non-vested Grant Date Shares Fair Value Performance shares, non-vested, beginning of year 261,000 $ 4.07 Granted - - Vested (100,000 ) 4.07 Forfeited (44,000 ) 4.07 Performance shares, non-vested, end of period 117,000 $ 4.07 |
Accumulated Other Comprehensi37
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The accumulated balances for each classification of other comprehensive loss for the six -month period ended June 30, 2017 are as follows: Unrealized Accumulated Foreign gain (losses) other currency on comprehensive items investments income Balance at January 1, 2017 $ (92,000 ) $ (11,000 ) $ (103,000 ) Net current period change (258,000 ) 4,000 (254,000 ) Balance at June 30, 2017 $ (350,000 ) $ (7,000 ) $ (357,000 ) The accumulated balances for each classification of other comprehensive loss for the six-month period ended June 30, 2016 are as follows: Unrealized Accumulated Foreign gain (losses) other currency on comprehensive items investments income Balance at January 1, 2016 $ (500,000 ) $ - $ (500,000 ) Net current period change 193,000 4,000 197,000 Balance at June 30, 2016 $ (307,000 ) $ 4,000 $ (303,000 ) |
Net Loss Per Share of Common 38
Net Loss Per Share of Common Stock (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted of Potential Dilution | Net loss per share for the three- and six-month periods ended June 30, 2016 and 2017 are as follows: Three Months Ended Six Months Ended June 30, June 30, 2016 2017 2016 2017 Basic and diluted loss per share Net loss $ (1,497,000 ) $ (524,000 ) $ (2,195,000 ) $ (2,410,000 ) Weighted-average shares outstanding 12,939,000 13,450,000 12,917,000 13,356,000 Basic and diluted net loss per share $ (0.12 ) $ (0.04 ) $ (0.17 ) $ (0.18 ) |
Accounts Payable and Accrued 39
Accounts Payable and Accrued Expenses (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | Accounts payable and accrued expenses consist of the following: December 31, 2016 June 30, 2017 (Unaudited) Accounts payable $ 6,195,000 $ 7,299,000 Accrued warranty 472,000 413,000 Accrued severance 609,000 312,000 Accrued compensation 297,000 482,000 Other current liabilities 49,000 33,000 $ 7,622,000 $ 8,539,000 |
Schedule of Product Warranty Liability | The following table summarizes warranty activity for the six-month periods ended June 30, 2016 and 2017: Six Months Ended June 30, 2016 2017 Accrued warranty reserve, beginning of period $ 614,000 $ 472,000 Accrual for product warranties issued 306,000 56,000 Product replacements and other warranty expenditures (206,000 ) (35,000 ) Expiration of warranties (175,000 ) (80,000 ) Accrued warranty reserve, end of period $ 539,000 $ 413,000 |
Wholly Owned Foreign Subsidia40
Wholly Owned Foreign Subsidiaries (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
I.D. Systems GmbH [Member] | |
Schedule of Financial Statements of Foreign Subsidiary | The net revenue and net loss for IDS GmbH included in the Condensed Consolidated Statement of Operations are as follows: For the Three Months Ended For the Six Months Ended June 30, June 30, 2016 2017 2016 2017 Net revenue $ 661,000 $ 236,000 $ 1,468,000 $ 451,000 Net income 165,000 60,000 549,000 55,000 |
I.D. Systems (UK) Ltd [Member] | |
Schedule of Financial Statements of Foreign Subsidiary | The net revenue and net loss for IDS Ltd included in the Condensed Consolidated Statement of Operations are as follows: For the Three Months Ended For the Six Months Ended June 30, June 30, 2016 2017 2016 2017 Net revenue $ 75,000 $ 336,000 $ 141,000 $ 407,000 Net (loss) income (161,000 ) 141,000 (264,000 ) 79,000 |
Description of Business and Liq
Description of Business and Liquidity (Details Narrative) | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Accounting Policies [Abstract] | |
Cash, cash equivalents and marketable securities | $ 10,300,000 |
Working capital | 10,100,000 |
Proceeds from revolving credit facility | $ 16,300,000 |
Investments (Details Narrative)
Investments (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Unrealized (loss) gain on investments | $ (11,000) | $ 4,000 | $ 4,000 |
Investments - Schedule of Fair
Investments - Schedule of Fair Value of Available for Sale Securities Excluding Mutual Funds (Details) | Jun. 30, 2017USD ($) |
Investments, Debt and Equity Securities [Abstract] | |
Due within one year | $ 20,000 |
Due one year through three years | 1,384,000 |
Due after three years | 155,000 |
Long term | $ 1,559,000 |
Investments - Schedule of Avail
Investments - Schedule of Available-for-sale Securities Reconciliation (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | $ 1,566,000 | $ 1,625,000 |
Unrealized Gain | ||
Unrealized Loss | (7,000) | (11,000) |
Fair Value | 1,559,000 | 1,614,000 |
Short-term Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 20,000 | 115,000 |
Unrealized Gain | ||
Unrealized Loss | ||
Fair Value | 20,000 | 115,000 |
Short-term Investments [Member] | Corporate Bonds and Commercial Paper [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 20,000 | 25,000 |
Unrealized Gain | ||
Unrealized Loss | ||
Fair Value | 20,000 | 25,000 |
Short-term Investments [Member] | U.S. Treasury Notes [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 40,000 | |
Unrealized Gain | ||
Unrealized Loss | ||
Fair Value | 40,000 | |
Short-term Investments [Member] | Government Agency Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 50,000 | |
Unrealized Gain | ||
Unrealized Loss | ||
Fair Value | 50,000 | |
Long-term Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 1,546,000 | 1,510,000 |
Unrealized Gain | ||
Unrealized Loss | (7,000) | (11,000) |
Fair Value | 1,539,000 | 1,499,000 |
Long-term Investments [Member] | Corporate Bonds and Commercial Paper [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 382,000 | 383,000 |
Unrealized Gain | ||
Unrealized Loss | (2,000) | (3,000) |
Fair Value | 380,000 | 380,000 |
Long-term Investments [Member] | U.S. Treasury Notes [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 1,064,000 | 1,027,000 |
Unrealized Gain | ||
Unrealized Loss | (4,000) | (7,000) |
Fair Value | 1,060,000 | 1,020,000 |
Long-term Investments [Member] | Government Agency Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 100,000 | 100,000 |
Unrealized Gain | ||
Unrealized Loss | (1,000) | (1,000) |
Fair Value | $ 99,000 | $ 99,000 |
Revenue Recognition (Details Na
Revenue Recognition (Details Narrative) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)Integer | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($) | |
Deferred Revenue Arrangement [Line Items] | |||||
Amortization of deferred equipment revenue | $ 1,487,000 | $ 1,201,000 | $ 3,009,000 | $ 2,605,000 | |
Unbilled receivables, current | 0 | 0 | $ 0 | ||
Avis Budget Car Rental LLC [Member] | |||||
Deferred Revenue Arrangement [Line Items] | |||||
Revenue recognition, milestone method, revenue recognized | $ 0 | $ 255,000 | |||
Revenue recognition, milestone method, description | Milestone payments are recognized as revenue upon achievement of the milestone only if the following conditions are met: (i) there is substantive uncertainty at the date of entering into the arrangement that the milestone would be achieved; (ii) the milestone is commensurate with either the vendors performance to achieve the milestone or the enhancement of the value of the delivered item by the vendor; (iii) the milestone relates solely to past performance; and (iv) the milestone is reasonable in relation to the effort expended to achieve the milestone. This development project was completed during 2016. | ||||
Cost of services, maintenance costs | $ 21,270,000 | ||||
Number of system and maintenance and support services units | Integer | 50,000 | ||||
Upfront payment | $ 3,290,000 | ||||
Initial payment | 2,000,000 | ||||
Payment for development cost | 902,000 | ||||
Payment for production readiness development | 388,000 | ||||
Refundable upfront payment | 1,785,000 | ||||
Revenue recognized | $ 772,000 | $ 772,000 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Deferred Revenue (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | $ 19,290,000 | $ 17,263,000 |
Less: Current portion | 10,999,000 | 7,197,000 |
Deferred revenue - less current portion | 8,291,000 | 10,066,000 |
Deferred Activation Fees [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | 343,000 | 385,000 |
Deferred Revenue [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | 2,651,000 | 230,000 |
Deferred Maintenance and Hosting Revenue [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | 3,650,000 | 3,049,000 |
Deferred Remote Asset Management Product Revenue [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | $ 12,646,000 | $ 13,599,000 |
Financing Receivables (Details
Financing Receivables (Details Narrative) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Receivables [Abstract] | ||
Unearned income on sales type leases | $ 232,000 | $ 293,000 |
Discount rate of unearned income | 5.00% | 5.00% |
Financing Receivables - Schedul
Financing Receivables - Schedule of Capital Leases, Future Minimum Payments (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Receivables [Abstract] | ||
July - December 2017 | $ 857,000 | |
2,018 | 1,289,000 | |
2,019 | 739,000 | |
2,020 | 479,000 | |
2,021 | 152,000 | |
Thereafter | 14,000 | |
Capital Leases, Future Minimum Payments | 3,530,000 | |
Less: Current portion | 1,634,000 | $ 1,766,000 |
Sales-type lease receivable - less current portion | $ 1,896,000 | $ 2,430,000 |
Inventories (Details Narrative)
Inventories (Details Narrative) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Inventory valuation reserves | $ 274,000 | $ 208,000 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Components | $ 1,194,000 | $ 1,183,000 |
Finished goods | 1,390,000 | 2,737,000 |
Inventory, Net | $ 2,584,000 | $ 3,920,000 |
Fixed Assets (Details Narrative
Fixed Assets (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||||
Depreciation and amortization expense | $ 200,000 | $ 143,000 | $ 326,000 | $ 286,000 | |
Software development and website development projects costs | 90,000 | 278,000 | |||
Computer Software and Website Development [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Computer equipment not yet placed in service | 4,000 | 4,000 | $ 1,919,000 | ||
Amortization expense | $ 114,000 | $ 44,000 | $ 150,000 | $ 87,000 |
Fixed Assets - Schedule of Fixe
Fixed Assets - Schedule of Fixed Assets (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 9,639,000 | $ 10,955,000 |
Accumulated depreciation and amortization | (6,703,000) | (7,880,000) |
Property, plant and equipment, net | 2,936,000 | 3,075,000 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 964,000 | 1,678,000 |
Computer Software and Website Development [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 5,591,000 | 5,874,000 |
Computer Hardware [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 2,438,000 | 2,761,000 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 405,000 | 401,000 |
Automobiles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 60,000 | 60,000 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 181,000 | $ 181,000 |
Intangible Assets and Goodwil53
Intangible Assets and Goodwill (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 34,000 | $ 34,000 | $ 67,000 | $ 68,000 |
Impairment charge |
Intangible Assets and Goodwil54
Intangible Assets and Goodwill - Schedule of Intangible Assets and Goodwill (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | $ 165,000 | $ 165,000 |
Finite-Lived Intangible Assets Excluding Goodwill | 165,000 | 165,000 |
Intangible Assets Gross | 1,654,000 | 1,654,000 |
Intangible Assets, Accumulated Amortization | (1,015,000) | (948,000) |
Total | 639,000 | 706,000 |
Customer List [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Net, Total | 104,000 | 104,000 |
Indefinite-Lived Intangible Assets (Excluding Goodwill) | 104,000 | 104,000 |
Trademark and Tradename [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Net, Total | 61,000 | 61,000 |
Indefinite-Lived Intangible Assets (Excluding Goodwill) | $ 61,000 | $ 61,000 |
Patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 11 years | 11 years |
Finite-Lived Intangible Assets, Gross | $ 1,489,000 | $ 1,489,000 |
Finite-Lived Intangible Assets, Accumulated Amortization | (1,015,000) | (948,000) |
Finite-Lived Intangible Assets, Net, Total | $ 474,000 | $ 541,000 |
Intangible Assets and Goodwil55
Intangible Assets and Goodwill - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) | Jun. 30, 2017USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
July - December 2017 | $ 69,000 |
2,018 | 135,000 |
2,019 | 135,000 |
2,020 | $ 135,000 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated share-based compensation expense | $ 108,000 | $ 83,000 | $ 198,000 | $ 161,000 |
Share-based compensation arrangement by share-based payment award, options, vested in period, fair value | 106,000 | 113,000 | ||
Share-based compensation arrangement by share-based payment award, options, exercises in period, total intrinsic value | 351,000 | 10,000 | ||
Employee service share-based compensation, nonvested awards, total compensation cost not yet recognized | 1,174,000 | $ 1,174,000 | ||
Employee service share-based compensation, nonvested awards, total compensation cost not yet recognized, period for recognition | 3 years 2 months 30 days | |||
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated share-based compensation expense | 411,000 | 285,000 | $ 854,000 | 616,000 |
Employee service share-based compensation, nonvested awards, total compensation cost not yet recognized | 1,870,000 | $ 1,870,000 | ||
Employee service share-based compensation, nonvested awards, total compensation cost not yet recognized, period for recognition | 2 years 4 months 17 days | |||
Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated share-based compensation expense | 65,000 | $ 137,000 | $ 245,000 | $ 250,000 |
Employee service share-based compensation, nonvested awards, total compensation cost not yet recognized | $ 136,000 | $ 136,000 | ||
Employee service share-based compensation, nonvested awards, total compensation cost not yet recognized, period for recognition | 6 months 18 days | |||
Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Option vested term | 10 years | |||
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 | 2,813,000 | ||
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 | 2,500,000 | ||
Shares available for future issuance | 49,000 | 49,000 | ||
Non-Employee Director Equity Compensation 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 | 600,000 | ||
Shares available for future issuance | 14,000 | 14,000 | ||
Equity Compensation Plan 2015 [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 | 1,200,000 | 1,200,000 | ||
Shares available for future issuance | 317,000 | 317,000 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Stock Options Activity (Details) - Employee Stock Option [Member] | 6 Months Ended |
Jun. 30, 2017USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options, Outstanding at beginning of year | shares | 1,243,000 |
Options, Granted | shares | 349,000 |
Options, Exercised | shares | (258,000) |
Options, Forfeited or expired | shares | (31,000) |
Options, Outstanding at end of period | shares | 1,303,000 |
Options, Exercisable at end of period | shares | 581,000 |
Weighted-Average Exercise Price, Outstanding at beginning of year | $ / shares | $ 5.08 |
Weighted-Average Exercise Price, Granted | $ / shares | 6 |
Weighted-Average Exercise Price, Exercised | $ / shares | 4.70 |
Weighted-Average Exercise Price, Forfeited or expired | $ / shares | 8.26 |
Weighted-Average Exercise Price, Outstanding at end of period | $ / shares | 5.33 |
Weighted-Average Exercise Price, Exercisable at end of period | $ / shares | $ 5.09 |
Weighted-Average Remaining Contractual Term, Outstanding at end of period | 7 years |
Weighted-Average Remaining Contractual Term, Exercisable at end of period | 4 years |
Aggregate Intrinsic Value, Outstanding at end of period | $ | $ 1,095,000 |
Aggregate Intrinsic Value, Exercisable at end of period | $ | $ 654,000 |
Stock-Based Compensation - Sc58
Stock-Based Compensation - Schedule of Fair Value Stock Option Assumption (Details) - $ / shares | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Expected volatility | 42.40% | 45.50% |
Expected life of options | 4 years | 4 years |
Risk free interest rate | 1.70% | 1.20% |
Dividend yield | 0.00% | 0.00% |
Weighted average fair value of options granted during the period | $ 2.11 | $ 1.60 |
Stock-Based Compensation - Sc59
Stock-Based Compensation - Schedule of Non-vested Share Activity (Details) - Restricted Stock [Member] | 6 Months Ended |
Jun. 30, 2017$ / sharesshares | |
Number of Non-vested shares, beginning of year | shares | 392,000 |
Number of Non-vested Shares, Granted | shares | 145,000 |
Number of Non-vested Shares, Vested | shares | (44,000) |
Number of Non-vested Shares, Forfeited | shares | (7,000) |
Number of Non-vested shares, end of period | shares | 486,000 |
Weighted- Average Grant Date Fair Value, Non-vested, beginning of year | $ / shares | $ 5.45 |
Weighted- Average Grant Date Fair Value, Granted | $ / shares | 6 |
Weighted- Average Grant Date Fair Value, Vested | $ / shares | 5.76 |
Weighted- Average Grant Date Fair Value, Forfeited | $ / shares | 5.69 |
Weighted- Average Grant Date Fair Value, Non-vested, end of period | $ / shares | $ 5.58 |
Stock-Based Compensation - Sc60
Stock-Based Compensation - Schedule of Non-vested Performance-based Units Activity (Details) - Performance Shares [Member] | 6 Months Ended |
Jun. 30, 2017$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Non-vested shares, beginning of year | shares | 261,000 |
Number of Non-vested Shares, Granted | shares | |
Number of Non-vested Shares, Vested | shares | (100,000) |
Number of Non-vested Shares, Forfeited | shares | (44,000) |
Number of Non-vested shares, end of period | shares | 117,000 |
Weighted- Average Grant Date Fair Value, Non-vested, beginning of year | $ / shares | $ 4.07 |
Weighted- Average Grant Date Fair Value, Granted | $ / shares | |
Weighted- Average Grant Date Fair Value, Vested | $ / shares | 4.07 |
Weighted- Average Grant Date Fair Value, Forfeited | $ / shares | 4.07 |
Weighted- Average Grant Date Fair Value, Non-vested, end of period | $ / shares | $ 4.07 |
Stockholders' Equity (Details N
Stockholders' Equity (Details Narrative) - USD ($) | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | Nov. 03, 2010 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | ||
Preferred stock, par value | $ 0.01 | $ 0.01 | ||
Preferred stock, shares issued | ||||
Preferred stock, shares outstanding | ||||
Restricted Stock [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Shares paid for tax withholding for share based compensation | 44,000 | 35,000 | ||
Adjustments related to tax withholding for share-based compensation | $ 257,000 | $ 163,000 | ||
Share Repurchase Program [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Stock repurchase program, authorized amount | $ 3,000,000 | |||
Treasury stock, shares | 310,000 | |||
Treasury stock, value | $ 1,340,000 | |||
Treasury stock acquired, average cost per share | $ 4.33 |
Accumulated Other Comprehensi62
Accumulated Other Comprehensive Loss (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||
Other comprehensive gain (loss) foreign currency translation adjustment | $ (238,000) | $ 145,000 | $ (258,000) | $ 193,000 |
Foreign currency transaction gains (losses) | $ 211,000 | $ (192,000) | $ 273,000 | $ (123,000) |
Accumulated Other Comprehensi63
Accumulated Other Comprehensive Loss - Schedule of Accumulated Other Comprehensive Loss (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||
Foreign currency items, Balance at Beginning | $ (92,000) | $ (500,000) | ||
Foreign currency items, Net current period change | (258,000) | 193,000 | ||
Foreign currency items, Balance at End | $ (350,000) | $ (307,000) | (350,000) | (307,000) |
Unrealized gain (losses) on investments, Balance at Beginning | (11,000) | |||
Unrealized gain (losses) on investments, Net current period change | 4,000 | 4,000 | ||
Unrealized gain (losses) on investments, Balance at End | (7,000) | 4,000 | (7,000) | 4,000 |
Accumulated other comprehensive income, Balance at Beginning | (103,000) | (500,000) | ||
Accumulated other comprehensive income, Net current period change | (238,000) | 134,000 | (254,000) | 197,000 |
Accumulated other comprehensive income, Balance at End | $ (357,000) | $ (303,000) | $ (357,000) | $ (303,000) |
Net Loss Per Share of Common 64
Net Loss Per Share of Common Stock (Details Narrative) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
Antidilutive securities excluded from computation of earnings per share, amount | 1,906,000 | 2,160,000 | 1,906,000 | 2,160,000 |
Net Loss Per Share of Common 65
Net Loss Per Share of Common Stock - Schedule of Basic and Diluted of Potential Dilution (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
Net loss | $ (524,000) | $ (1,497,000) | $ (2,410,000) | $ (2,195,000) |
Weighted-average shares outstanding | 13,450,000 | 12,939,000 | 13,356,000 | 12,917,000 |
Basic and diluted net loss per share | $ (0.04) | $ (0.12) | $ (0.18) | $ (0.17) |
Revolving Credit Facility (Deta
Revolving Credit Facility (Details Narrative) - USD ($) | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Line of credit principal balance | $ 2,993,000 | |
Revolving Credit Facility [Member] | ||
Line of credit principal balance | 2,000,000 | |
Line of credit availability | 912,000 | |
Credit facility maximum borrowing capacity | $ 7,500,000 | |
Credit facility, maturity period | Dec. 18, 2017 | |
Credit bear interest rate | 6.25% | |
Percentage of unused line fee | 0.50% | |
Percentage of voting stock of all present and future foreign subsidiaries of loan parties | 65.00% | |
Revolving Credit Facility [Member] | Loan And Security Agreement [Member] | ||
Credit bear interest rate | 3.25% | |
Revolving Credit Facility [Member] | Loan And Security Agreement [Member] | Base Rate [Member] | ||
Credit bear interest rate | 2.00% | |
Revolving Credit Facility [Member] | Loan And Security Agreement [Member] | Federal Funds Effective Swap Rate [Member] | ||
Credit bear interest rate | 0.50% | |
Revolving Credit Facility [Member] | Lender [Member] | ||
Credit facility maximum borrowing capacity | $ 7,500,000 | |
Revolving Credit Facility [Member] | Lender [Member] | Accounts Receivables [Member] | ||
Percentage of eligible receivables | 85.00% | |
Revolving Credit Facility [Member] | Lender [Member] | Lease Receivables [Member] | ||
Percentage of eligible receivables | 75.00% | |
Revolving Credit Facility [Member] | On or Before December 18, 2016 [Member] | ||
Credit prepayment amount percentage | 3.00% | |
Revolving Credit Facility [Member] | After December 18, 2016 But On or Before June 18, 2017 [Member] | ||
Credit prepayment amount percentage | 1.50% | |
Revolving Credit Facility [Member] | Closing Date Through and Including January 31, 2016 [Member] | ||
Credit covenants amount | $ 3,500,000 | |
Revolving Credit Facility [Member] | February 1, 2016 or at Any Time Thereafter [Member] | ||
Credit covenants amount | $ 4,000,000 |
Accounts Payable and Accrued 67
Accounts Payable and Accrued Expenses (Details Narrative) - USD ($) | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Accrued severance | $ 312,000 | $ 609,000 |
Product warranty period | 12 months | |
Extended warranty coverage term | 60 months | |
Former CEO and COO [Member] | ||
Accrued severance | $ 312,000 | $ 609,000 |
Accrued severance payable equal monthly installments | $ 37,000 |
Accounts Payable and Accrued 68
Accounts Payable and Accrued Expenses - Schedule of Accounts Payable and Accrued Liabilities (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Accounts Payable and Accrued Liabilities, Current [Abstract] | ||
Accounts payable | $ 7,299,000 | $ 6,195,000 |
Accrued warranty | 413,000 | 472,000 |
Accrued severance | 312,000 | 609,000 |
Accrued compensation | 482,000 | 297,000 |
Other current liabilities | 33,000 | 49,000 |
Accounts payable and accrued expenses | $ 8,539,000 | $ 7,622,000 |
Accounts Payable and Accrued 69
Accounts Payable and Accrued Expenses - Schedule of Product Warranty Liability (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Accounts Payable and Accrued Liabilities, Current [Abstract] | ||
Accrued warranty reserve, beginning of period | $ 472,000 | $ 614,000 |
Accrual for product warranties issued | 56,000 | 306,000 |
Product replacements and other warranty expenditures | (35,000) | (206,000) |
Expiration of warranties | (80,000) | (175,000) |
Accrued warranty reserve, end of period | $ 413,000 | $ 539,000 |
Concentration of Customers (Det
Concentration of Customers (Details Narrative) | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Customer One [Member] | Sales Revenue, Net [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 18.00% | 17.00% |
Customer One [Member] | Accounts Receivables [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 22.00% | 10.00% |
Customer One [Member] | Finance Receivables [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 12.00% | |
Customer Two [Member] | Sales Revenue, Net [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 10.00% |
Wholly Owned Foreign Subsidia71
Wholly Owned Foreign Subsidiaries (Details Narrative) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Foreign Subsidiaries Financial Information Disclosure [Line Items] | ||
Assets, total | $ 43,756,000 | $ 44,246,000 |
I.D. Systems GmbH [Member] | ||
Foreign Subsidiaries Financial Information Disclosure [Line Items] | ||
Assets, total | 874,000 | 1,012,000 |
I.D. Systems (UK) Ltd [Member] | ||
Foreign Subsidiaries Financial Information Disclosure [Line Items] | ||
Assets, total | $ 1,240,000 | $ 1,130,000 |
Wholly Owned Foreign Subsidia72
Wholly Owned Foreign Subsidiaries - Schedule of Financial Statements of Foreign Subsidiary (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Foreign Subsidiaries Financial Information Disclosure [Line Items] | ||||
Net revenue | $ 10,706,000 | $ 8,904,000 | $ 18,705,000 | $ 19,381,000 |
Net (loss) income | (524,000) | (1,497,000) | (2,410,000) | (2,195,000) |
I.D. Systems GmbH [Member] | ||||
Foreign Subsidiaries Financial Information Disclosure [Line Items] | ||||
Net revenue | 236,000 | 661,000 | 451,000 | 1,468,000 |
Net (loss) income | 60,000 | 165,000 | 55,000 | 549,000 |
I.D. Systems (UK) Ltd [Member] | ||||
Foreign Subsidiaries Financial Information Disclosure [Line Items] | ||||
Net revenue | 336,000 | 75,000 | 407,000 | 141,000 |
Net (loss) income | $ 141,000 | $ (161,000) | $ 79,000 | $ (264,000) |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) | 6 Months Ended |
Jun. 30, 2017USD ($) | |
MTI [Member] | |
Loss contingency, damages sought value | $ 2,000,000 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - Subsequent Event [Member] - USD ($) | Jul. 31, 2017 | Jul. 17, 2017 |
Sale of stock shares issued | 391,304 | |
Keytroller Acquisition [Member] | ||
Number of common stock issued | 295,902 | |
Cash | $ 7,098,216 | |
Number of common stock issued, value | $ 3,000,000 | |
Public Offering [Member] | ||
Sale of stock shares issued | 2,608,695 | |
Sale of stock price per share | $ 5.75 | |
Number of common stock issued | 2,999,999 | |
Debt issuance cost | $ 17,300,000 | |
Proceeds from public offering | $ 16,300,000 |