Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | 14-May-14 | |
Document and Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Mar-14 | ' |
Entity Registrant Name | 'MICRONET ENERTEC TECHNOLOGIES, INC. | ' |
Entity Central Index Key | '0000854800 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 5,831,246 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current Assets: | ' | ' |
Cash and cash equivalents | $11,959 | $12,825 |
Marketable securities | 6,964 | 6,969 |
Trade accounts receivables, net | 11,454 | 13,467 |
Inventories | 4,417 | 4,324 |
Derivative asset - call options | 532 | 460 |
Other account receivable | 1,326 | 1,165 |
Total current assets | 36,652 | 39,210 |
Property, and equipment, net | 2,369 | 2,440 |
Intangible assets and others, net | 1,000 | 1,076 |
Long term deposit | 139 | 103 |
Total long term assets | 3,508 | 3,619 |
Total assets | 40,160 | 42,829 |
Current Liabilities: | ' | ' |
Short term bank credit and current portion of long term bank loans | 5,080 | 5,058 |
Current portion of long term notes and convertible debenture, net of discount | 983 | ' |
Trade account payables | 3,645 | 4,361 |
Other account payables | 2,352 | 3,355 |
Total current liabilities | 12,060 | 12,774 |
Long term loans from banks and others | 2,374 | 3,130 |
Long term notes, net of discount | ' | 933 |
Finance lease | 97 | 109 |
Accrued severance pay, net | 138 | 172 |
Deferred tax liabilities, net | 99 | 113 |
Total long term liabilities | 2,708 | 4,457 |
Stockholders' Equity: | ' | ' |
Preferred stock; $.001 par value, 5,000,000 shares authorized, none issued and outstanding | ' | ' |
Common stock; $.001 par value, 100,000,000 shares authorized, 5,831,246 shares issued and outstanding as of March 31, 2014 and December 31, 2013 | 6 | 6 |
Additional paid in capital | 8,059 | 8,053 |
Accumulated other comprehensive income | 1,440 | 1,389 |
Retained earnings | 8,090 | 8,423 |
Micronet Enertec stockholders' equity | 17,595 | 17,871 |
Non-controlling interests | 7,797 | 7,727 |
Total equity | 25,392 | 25,598 |
Total liabilities and equity | $40,160 | $42,829 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Consolidated Balance Sheet [Abstract] | ' | ' |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 5,831,246 | 5,831,246 |
Common stock, shares outstanding | 5,831,246 | 5,831,246 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Consolidated Statements of Income and Other Comprehensive Income [Abstract] | ' | ' |
Revenues | $5,567 | $10,361 |
Cost of revenues | 3,515 | 6,714 |
Gross profit | 2,052 | 3,647 |
Operating expenses: | ' | ' |
Research and development | 744 | 709 |
Selling and marketing | 391 | 314 |
General and administrative | 884 | 784 |
Amortization of intangible assets | 93 | 378 |
Total operating expenses | 2,112 | 2,185 |
Income (loss) from operations | -60 | 1,462 |
Financial expenses, net | 46 | 1,131 |
Income (loss) before provision for income taxes | -106 | 331 |
Taxes on income | 79 | 119 |
Net income (loss) | -185 | 212 |
Net loss attributable to non-controlling interests | 147 | 673 |
Net loss attributable to Micronet Enertec | ($332) | ($461) |
Loss per share attributable to Micronet Enertec: | ' | ' |
Basic and diluted | ($0.06) | ($0.13) |
Weighted average common shares outstanding: | ' | ' |
Basic and diluted | 5,831,246 | 3,483,749 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | ' | ' |
Net income | ($185) | $212 |
Other comprehensive income net of tax: | ' | ' |
Currency translation adjustment | -26 | 609 |
Total comprehensive income | -211 | 821 |
Comprehensive loss attributable to the non-controlling interests | 71 | -714 |
Comprehensive income attributable to Micronet Enertec | ($140) | $107 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net income | ($185) | $212 |
Adjustments to reconcile net loss to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 233 | 381 |
Marketable securities | 125 | -39 |
Change in fair value of derivatives, net | -71 | 298 |
Change in deferred taxes, net | -38 | -5 |
Accrued interest on bank loans | 6 | 72 |
Amortization of discount of long term notes and net | 50 | 585 |
Stock based compensation | 6 | ' |
Changes in operating assets and liabilities: | ' | ' |
Decrease in trade account receivables | 1,928 | 547 |
Increase (decrease) in inventories | -93 | 1,722 |
Decrease in accrued severance pay, net | -34 | -874 |
Increase in other account receivables | -156 | -348 |
Decrease in trade account payables | -716 | -325 |
Decrease in other account payables | -1,052 | -656 |
Net cash provided by operating activities | 3 | 1,570 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Purchase of property and equipment | -69 | -112 |
Marketable securities | -121 | -104 |
Net cash used in investing activities | -190 | -216 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Short term bank credit | 46 | 650 |
Repayment of bank loan | -786 | -525 |
Dividend paid to non-controlling interest | ' | -681 |
Net cash used in financing activities | -740 | -556 |
NET CASH INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | -927 | 798 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 12,825 | 10,611 |
TRANSLATION ADJUSTMENT ON CASH AND CASH EQUIVALENTS | 61 | 19 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $11,959 | $11,428 |
DESCRIPTION_OF_BUSINESS
DESCRIPTION OF BUSINESS | 3 Months Ended |
Mar. 31, 2014 | |
DESCRIPTION OF BUSINESS [Abstract] | ' |
DESCRIPTION OF BUSINESS | ' |
A. Overview | |
Micronet Enertec Technologies, Inc., a U.S. based Delaware corporation was formed on January 31, 2002. | |
We operate through two Israel-based companies, Enertec Systems 2001 Ltd, ("Enertec"), our wholly-owned subsidiary, and Micronet Ltd, ("Micronet") in which we hold 52.26% as of March 31, 2014 and controlled by us. (Collectively, "we," "Micronet Enertec" or "the Company"). | |
Micronet is a publicly traded company on the Tel Aviv Stock Exchange and operates in the growing commercial Mobile Resource Management, or MRM market. Micronet designs, develops, manufactures and sells rugged mobile computing devices that provide fleet operators and field workforces with computing solutions in challenging work environments. Micronet's vehicle cabin installed and portable tablets increase workforce productivity and enhance corporate efficiency by offering computing power and communication capabilities that provide fleet operators with visibility into vehicle location, fuel usage, speed and mileage. Micronet's customers consist primarily of application service providers, or ASPs, and solution providers specializing in the MRM market. | |
Enertec operates in the Defense and Aerospace markets and designs, develops, manufactures and supplies various customized military computer-based systems, simulators, automatic test equipment and electronic instruments. Enertec's solutions and systems are designed according to major aerospace integrators' requirements and are integrated by them into critical systems such as command and control, missile fire control, maintenance of military aircraft and missiles for use by the Israeli Air Force and Navy and by foreign defense entities. | |
B. UTA Financing | |
On July 12, 2011, the Company entered into a Note and Warrant Purchase Agreement with UTA Capital LLC, a Delaware limited liability company ("UTA"), (the "Purchase Agreement,") pursuant to which UTA provided financing to Micronet Enertec on a secured basis. The Purchase Agreement was amended several times. The initial closing of the transactions contemplated by the Purchase Agreement took place on September 1, 2011 on which the Company issued to UTA a secured promissory note in the principal amount of $3,000 that matured on March 1, 2014 (the "First Note"). The First Note bore interest at a rate of 8% per annum and the principal was due to be repaid in three equal principal payments of $1,000 on each of September 1, 2012, September 1, 2013 and March 1, 2014. In addition, the Company issued to UTA a warrant (the "First Warrant") to purchase up to 476,113 shares of the Company's Common Stock at an exercise price initially equal to $1.00 per share, representing 12% of the Company's outstanding shares of Common Stock, on a fully diluted basis. The First Warrant became exercisable on March 1, 2012 and was exercised in full in March 2013. The Company agreed to certain customary covenants in connection with the issuance of the First Warrant. | |
C. Micronet Acquisition | |
On September 7, 2012, we, through our wholly-owned subsidiary Enertec Electronics Ltd., an Israeli corporation ("Enertec Electronics"), acquired from three Israeli individuals who collectively were the former controlling shareholders of Micronet (the "Sellers"), 47.5% of the issued and outstanding shares of Micronet (the "Acquisition") pursuant to a stock purchase agreement (the "Agreement"). Pursuant to partial exercise of certain options granted to us under the Agreement and additional purchases of shares from former officers of Micronet, we currently own approximately 52.26% of the outstanding ordinary shares of Micronet, and we are the largest shareholder of Micronet and the legal controlling entity. | |
Pursuant to the terms of the Agreement, we acquired 8,256,000 ordinary shares of Micronet for 17,300 New Israeli Shekels (NIS) (approximately $4,300), divided pro rata among Sellers. The Acquisition was financed based partly on our own resources and partly by means of a loan from UTA Capital LLC . The Agreement also includes two call options granted to Micronet Enertec (via Enertec Electronics) and a put option granted to Sellers. Pursuant to the initial call option, we were entitled to purchase from the Sellers, during the period beginning on the closing of the transaction and for 11 months thereafter, up to additional 996,000 ordinary shares of Micronet (5.49% of Micronet's issued and outstanding shares) for a price of 2.1 NIS (approximately $0.602 per share at March 31, 2014) per share as adjusted based on the Israeli consumers index. Under the second call option, we are entitled to purchase from the Sellers up to additional 1,200,000 ordinary shares of Micronet. | |
The second call option is in effect for the period that begins on the one-year anniversary of the closing of the transaction and ends on the 21-month anniversary of the closing of the transaction (6.62% of Micronet's issued and outstanding shares) for a price of 2.1 NIS per share as adjusted based on the Israeli consumers index (approximately $0.602 per share at March 31, 2014) plus 25% of Micronet's 2012 gross profit per share based on Micronet's issued and outstanding shares as of December 31, 2012 up to a maximum of 18,850,000 shares, but in any event such price per share shall not exceed 3 NIS (approximately $0.860 per share at March 31, 2014). Pursuant to the put option granted to the Sellers, the Sellers can cause the sale of up to an additional 1,000,002 ordinary shares constituting 5.73% of Micronet's issued and outstanding shares for a price of 2.2 NIS per share (approximately $0.63 per share at March 31, 2014) as adjusted based on the Israeli customers index. The put option is in effect for the period that begins on the one-year anniversary of the closing of the transaction and ends on the 22-month anniversary of the closing of the transaction. Micronet's results of operations and balance sheet have been included in our consolidated reports since September 7, 2012 (the "Closing Date"). | |
On November 14, 2012 and on May 28, 2013, the Company, via Enertec Electronics, exercised its right pursuant to the initial call option granted under the Agreement and acquired an additional 996,000 ordinary shares of Micronet for total consideration of $558,000, increasing our ownership to 51% of the issued and outstanding shares of Micronet. On August 18, 2013, the Company purchased an additional 600,000 ordinary shares of Micronet for consideration of $676,000. As a result, the company increased its holdings to 54.3% of the issued and outstanding shares of Micronet which were thereafter diluted on November 4, 2013 as a result of the exercise of certain options by Micronet officers. We currently own approximately 52.26% of the issued and outstanding shares of Micronet. | |
C. UTA Additional Financing | |
In connection with the Acquisition, the Company entered into an Amended and Restated Note and Warrant Purchase Agreement (the "Amended Agreement") with UTA dated September 7, 2012. The Amended Agreement included mainly changes to the collateral obligations to secure the notes and the postponement of the first installment from September 2012 to December 2012. On September 7, 2012, the Company issued to UTA, pursuant to the Amended Agreement: (i) a Second unsecured promissory note in the principal amount of $3,000, with an initial interest rate equal to 8% per annum, $1,500 of such amount was payable on May 15, 2013 (the "Second Note"), and the remaining balance due at the maturity date of April 1, 2014, and (ii) a second warrant (the "Second Warrant") entitling UTA to purchase from the Company up to a total of 300,000 shares of the Company's Common Stock at an exercise price initially equal to $1.30 per share, first exercisable during a period beginning six months from September 7, 2012, and ending 66 months from September 7, 2012. | |
On January 28, 2013, the Company and UTA amended the terms of the Amended Agreement and the First Note and Second Note to provide that any net proceeds of any equity financing by the Company or any of the Company's subsidiaries will be applied as follows: (x) the first $4,000 may be retained by the Company or applied to reduce other obligations of the Company or any of the Company's subsidiaries, and (y) 75% of the excess of such net proceeds over $4,000 may be retained by the Company or applied to reduce other obligations of the Company or any of the Company's subsidiaries, and the remaining 25% shall be applied (A) first to the repayment of the First Note and (B) second, to the extent any proceeds remain, to the repayment of the Second Note. | |
On March 8, 2013, UTA fully exercised the Warrants and the Company issued an aggregate of 726,746 shares of Common Stock to UTA upon such exercise, which represented approximately 18.3% of the Company's outstanding Common Stock as of March 14, 2013. | |
D. Public Offering | |
During the second quarter of 2013, the Company closed an underwritten public offering of 1,863,000 shares of Common Stock, and warrants to purchase 1,012,500 shares of Common Stock, at an offering price of $5.00 per share and $0.01 per warrant. The warrants have a per share exercise price of $6.25, are exercisable immediately, and expire on April 29, 2018. The gross proceeds to the Company, including the underwriter's exercise of its over-allotment option, were $9,324 before deduction of issuance costs of $1,921 payable by the Company. The shares and warrants began trading on the NASDAQ Capital Market on April 24, 2013 under the symbols "MICT" and "MICTW," respectively. The company analyzed the accounting treatment of the shares and warrants and classified them as equity according to the appropriate accounting guidance. | |
E. Repayment of UTA loans | |
In May 2013, the Company repaid certain of its debt to UTA pursuant to the First Note and Second Note in the total amount of $1,185. In June 2013, the Company repaid additional amounts of its debt to UTA pursuant to the First Note in the total amount of $282. Also, On December 30, 2013, the Company and UTA entered into an amendment (the "Second Amendment") to the Amended Agreement. Pursuant to the Second Amendment, among other things, the maturity date of the Second Note was extended to January 10, 2015 and the maturity date of the First Note was set to be December 30, 2013. On December 30, 2013, the Company repaid to UTA an amount of $1,032, including repayment in full of the First Note, and subsequently, the final payment of the principal amount under the Second Note, originally due in May 2014 to the Purchaser in the amount of $1,000 was postponed to January 10, 2015. |
BASIS_OF_PRESENTATION_AND_CONS
BASIS OF PRESENTATION AND CONSOLIDATION | 3 Months Ended |
Mar. 31, 2014 | |
BASIS OF PRESENTATION AND CONSOLIDATION [Abstract] | ' |
BASIS OF PRESENTATION AND CONSOLIDATION | ' |
NOTE 2 - BASIS OF PRESENTATION AND CONSOLIDATION | |
Basis of Presentation | |
The condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial statements and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the United States Securities and Exchange Commission ("SEC"). Accordingly, they do not contain all information and footnotes required by accounting principles generally accepted in the United States of America for annual financial statements. The condensed consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. In the opinion of the Company's management, the accompanying unaudited condensed consolidated financial statements contain all the adjustments necessary (consisting only of normal recurring accruals) to present the financial position of the Company as of March 31, 2014 and the results of operations and cash flows for the periods presented. The results of operations for the three months ended March 31, 2014 are not necessarily indicative of the operating results for the full fiscal year or any future period. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2013. The Company's accounting policies are described in the Notes to Consolidated Financial Statements in its Annual Report on Form 10-K for the year ended December 31, 2013, and updated, as necessary, in this Quarterly Report on Form 10-Q. | |
Use of Estimates | |
The preparation of the financial statements in conformity with generally accepted accounting principles in the United States of America ("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 dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. | |
Principles of consolidation | |
The consolidated financial statements comprise the results and position of the Company and its subsidiaries. Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its operating activities. In assessing control, legal and contractual rights are taken into account. The consolidated financial statements of subsidiaries are included in the consolidated financial statements from the date that control is achieved until the date that control ceases. Intercompany transactions and balances are eliminated upon consolidation. | |
Recent Accounting Pronouncements | |
New accounting standards that are applicable to the period | |
On January 1, 2014, the Financial Accounting Standard Board ("FASB") issued ASU No. 2013-05, Foreign Currency Matters (Topic 830): Parent's Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity ("ASU 2013-05"). Under ASU 2013-05 when: a parent sells an investment in a foreign entity and ceases to have a controlling interest in that foreign entity or a foreign subsidiary disposes of substantially all of its assets; or, control of a foreign entity is obtained in which it held an equity interest before the acquisition date, the cumulative translation adjustment should be released into net income. The Company does not expect the adoption of ASU 2013-05 to have a material impact on its consolidated financial statements. | |
On January 1, 2014, the FASB issued ASU No. 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists ("ASU 2013-11"). ASU 2013-11 eliminates diversity in practice regarding the presentation of an unrecognized tax benefit when a net operating loss carryforward or a tax credit carryforward exists. The Company does not expect the adoption of ASU 2013-11 to have a material impact on its consolidated financial statements. | |
New accounting standards issued and still not applicable for the period | |
In April 2014, the FASB issued ASU No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity ("ASU 2014-08"). ASU 2014-08 changes the requirements for reporting discontinued operations in subtopic 205-20 as well as the related disclosures. ASU 2014-08 is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2014. The Company does not expect the adoption of ASU 2014-08 to have a material impact on its consolidated financial statements. | |
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
FAIR VALUE MEASUREMENTS [Abstract] | ' | ||||||||||||||||
FAIR VALUE MEASUREMENTS | ' | ||||||||||||||||
NOTE 3 - FAIR VALUE MEASUREMENTS | |||||||||||||||||
The accounting guidance establishes a valuation hierarchy for disclosure of the inputs to valuation used to measure fair value. This hierarchy prioritizes the inputs into three broad levels as follows: | |||||||||||||||||
Level 1 - Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in active markets that the Company has the ability to access at the measurement date. | |||||||||||||||||
Level 2 - Observable inputs such as quoted prices for similar instruments and quoted prices in markets that are not active, and inputs that are directly observable or can be corroborated by observable market data. The types of assets and liabilities included in Level 2 are typically either comparable to actively traded securities or contracts, such as treasury securities with pricing interpolated from recent trades of similar securities, or priced with models using highly observable inputs, such as commodity options priced using observable forward prices and volatilities. | |||||||||||||||||
Level 3 - Significant inputs to pricing that have little or no observability as of the reporting date. The types of assets and liabilities included in Level 3 are those with inputs requiring significant management judgment or estimation, such as the complex and subjective models and forecasts used to determine the fair value of financial instruments. | |||||||||||||||||
Financial assets and liabilities measured at fair value as of March 31, 2014 and December 31, 2013, are summarized below: | |||||||||||||||||
Fair value measurements using input type | |||||||||||||||||
31-Mar-14 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Cash and cash equivalents | $ | 11,959 | $ | - | $ | - | $ | 11,959 | |||||||||
Marketable securities | 6,964 | - | - | 6,964 | |||||||||||||
Derivative asset - call option | - | 532 | - | 532 | |||||||||||||
$ | 18,923 | $ | 532 | $ | - | $ | 19,455 | ||||||||||
Fair value measurements using input type | |||||||||||||||||
31-Dec-13 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Cash and cash equivalents | $ | 12,825 | $ | - | $ | - | $ | 12,825 | |||||||||
Marketable securities | 6,969 | - | - | 6,969 | |||||||||||||
Derivative asset - call option | - | 460 | - | 460 | |||||||||||||
$ | 19,794 | $ | 460 | $ | - | $ | 20,254 | ||||||||||
INVENTORIES
INVENTORIES | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
INVENTORIES [Abstract] | ' | ||||||||
INVENTORIES | ' | ||||||||
NOTE 4 - INVENTORIES | |||||||||
Inventories are stated at the lower of cost or market, computed using the first-in, first-out method. Inventories consist of the following: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Raw materials | $ | 3,732 | $ | 3,814 | |||||
Work in process | 685 | 510 | |||||||
$ | 4,417 | $ | 4,324 |
CONCENTRATIONS
CONCENTRATIONS | 3 Months Ended |
Mar. 31, 2014 | |
CONCENTRATIONS [Abstract] | ' |
CONCENTRATIONS | ' |
NOTE 5 - CONCENTRATIONS | |
A significant portion of our annual revenues during the past two years was derived from few leading customers that are large-scale strategic Israeli defense groups (Raphael, Israeli Aerospace Industry). Following the Acquisition, PeopleNet Communications Corporation, which operates in the U.S. market, has been added as a major significant customer. | |
For the three months ended March 31, 2014, approximately 85.48% of our sales were from three major customers, compared to 85.4% from two major customers for the three months ended March 31, 2013. | |
SEGMENTS
SEGMENTS | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
SEGMENTS [Abstract] | ' | ||||||||||||
SEGMENTS | ' | ||||||||||||
NOTE 6 - SEGMENTS | |||||||||||||
Operating segments are based upon our internal organization structure, the manner in which our operations are managed and the availability of separate financial information. Following the Acquisition of Micronet, we have two operating segments: a defense and aerospace segment operated by Enertec Systems and a mobile resource management segment operated by Micronet. | |||||||||||||
The following table summarizes the financial performance of our operating segments: | |||||||||||||
Three months ended March 31, 2014 | |||||||||||||
Defense and aerospace | Mobile resource management | Consolidated | |||||||||||
Revenues from external customers | $ | 2,232 | $ | 3,335 | $ | 5,567 | |||||||
Segment operating income | (82 | ) | 353 | -1 | 271 | ||||||||
Unallocated expenses | 239 | ||||||||||||
Consolidated loss from operations | $ | 32 | |||||||||||
Year ended December 31, 2013 | |||||||||||||
Defense and aerospace | Mobile resource management | Consolidated | |||||||||||
Revenues from external customers | $ | 11,316 | $ | 24,255 | $ | 35,571 | |||||||
Segment operating income | 733 | 5,916 | -1 | 6,649 | |||||||||
Unallocated expenses | 1,367 | ||||||||||||
Consolidated loss from operations | $ | 5,282 | |||||||||||
-1 | Excludes $93 of intangible assets amortization for the three months ended March 31, 2014 ($657 for the year ended December 31, 2013). | ||||||||||||
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2014 | |
SUBSEQUENT EVENTS [Abstract] | ' |
SUBSEQUENT EVENTS | ' |
NOTE 7 - Subsequent Events | |
On May 6, 2014, Micronet entered into an Asset Purchase Agreement (the "Asset Purchase Agreement") with Beijer Electronics Inc., a Utah corporation ("Seller"), for the consummation of a transaction (the "Transaction") pursuant to which Micronet will acquire certain assets and liabilities of the Seller's U.S. vehicle business and operations related to the supply of panels to various transportation segments (the "Vehicle Operations"). In consideration, Micronet has agreed (i) to pay a purchase price of $6,500 plus an additional amount of up to $1,300 for existing and future inventory to be finally determined at the closing of the transaction (the "Closing") in accordance with the Asset Purchase Agreement, and (ii) to the assumption by Micronet at the Closing of certain liabilities of the Seller (the "Transaction"). The purchase will be financed partially from Micronet's own independent resources and partially through a bank. The Closing of the Transaction is subject to the satisfaction or waiver of certain closing conditions. Following the Closing, which is expected to occur by mid-June 2014, the Vehicle Operations will be owned by Micronet or its affiliate. The Asset Purchase Agreement contains customary representations and warranties by the Seller and Micronet. Micronet and the Seller have agreed that $650 of the purchase price will be placed in escrow at the Closing as security for the Seller's and Micronet's indemnification and other potential obligations under the Asset Purchase Agreement. | |
BASIS_OF_PRESENTATION_AND_CONS1
BASIS OF PRESENTATION AND CONSOLIDATION (Policy) | 3 Months Ended |
Mar. 31, 2014 | |
BASIS OF PRESENTATION AND CONSOLIDATION [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation | |
The condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial statements and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the United States Securities and Exchange Commission ("SEC"). Accordingly, they do not contain all information and footnotes required by accounting principles generally accepted in the United States of America for annual financial statements. The condensed consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. In the opinion of the Company's management, the accompanying unaudited condensed consolidated financial statements contain all the adjustments necessary (consisting only of normal recurring accruals) to present the financial position of the Company as of March 31, 2014 and the results of operations and cash flows for the periods presented. The results of operations for the three months ended March 31, 2014 are not necessarily indicative of the operating results for the full fiscal year or any future period. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2013. The Company's accounting policies are described in the Notes to Consolidated Financial Statements in its Annual Report on Form 10-K for the year ended December 31, 2013, and updated, as necessary, in this Quarterly Report on Form 10-Q. | |
Use of Estimates | ' |
Use of Estimates | |
The preparation of the financial statements in conformity with generally accepted accounting principles in the United States of America ("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 dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. | |
Principles of Consolidation | ' |
Principles of consolidation | |
The consolidated financial statements comprise the results and position of the Company and its subsidiaries. Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its operating activities. In assessing control, legal and contractual rights are taken into account. The consolidated financial statements of subsidiaries are included in the consolidated financial statements from the date that control is achieved until the date that control ceases. Intercompany transactions and balances are eliminated upon consolidation. | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
New accounting standards that are applicable to the period | |
On January 1, 2014, the Financial Accounting Standard Board ("FASB") issued ASU No. 2013-05, Foreign Currency Matters (Topic 830): Parent's Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity ("ASU 2013-05"). Under ASU 2013-05 when: a parent sells an investment in a foreign entity and ceases to have a controlling interest in that foreign entity or a foreign subsidiary disposes of substantially all of its assets; or, control of a foreign entity is obtained in which it held an equity interest before the acquisition date, the cumulative translation adjustment should be released into net income. The Company does not expect the adoption of ASU 2013-05 to have a material impact on its consolidated financial statements. | |
On January 1, 2014, the FASB issued ASU No. 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists ("ASU 2013-11"). ASU 2013-11 eliminates diversity in practice regarding the presentation of an unrecognized tax benefit when a net operating loss carryforward or a tax credit carryforward exists. The Company does not expect the adoption of ASU 2013-11 to have a material impact on its consolidated financial statements. | |
New accounting standards issued and still not applicable for the period | |
In April 2014, the FASB issued ASU No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity ("ASU 2014-08"). ASU 2014-08 changes the requirements for reporting discontinued operations in subtopic 205-20 as well as the related disclosures. ASU 2014-08 is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2014. The Company does not expect the adoption of ASU 2014-08 to have a material impact on its consolidated financial statements. | |
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
FAIR VALUE MEASUREMENTS [Abstract] | ' | ||||||||||||||||
Schedule of Financial Assets and Liabilitites Measured at Fair Value | ' | ||||||||||||||||
Fair value measurements using input type | |||||||||||||||||
31-Mar-14 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Cash and cash equivalents | $ | 11,959 | $ | - | $ | - | $ | 11,959 | |||||||||
Marketable securities | 6,964 | - | - | 6,964 | |||||||||||||
Derivative asset - call option | - | 532 | - | 532 | |||||||||||||
$ | 18,923 | $ | 532 | $ | - | $ | 19,455 | ||||||||||
Fair value measurements using input type | |||||||||||||||||
31-Dec-13 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Cash and cash equivalents | $ | 12,825 | $ | - | $ | - | $ | 12,825 | |||||||||
Marketable securities | 6,969 | - | - | 6,969 | |||||||||||||
Derivative asset - call option | - | 460 | - | 460 | |||||||||||||
$ | 19,794 | $ | 460 | $ | - | $ | 20,254 | ||||||||||
INVENTORIES_Tables
INVENTORIES (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
INVENTORIES [Abstract] | ' | ||||||||
Schedule of Inventories | ' | ||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Raw materials | $ | 3,732 | $ | 3,814 | |||||
Work in process | 685 | 510 | |||||||
$ | 4,417 | $ | 4,324 |
SEGMENTS_Tables
SEGMENTS (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
SEGMENTS [Abstract] | ' | ||||||||||||
Schedule of Operating Segments | ' | ||||||||||||
Three months ended March 31, 2014 | |||||||||||||
Defense and aerospace | Mobile resource management | Consolidated | |||||||||||
Revenues from external customers | $ | 2,232 | $ | 3,335 | $ | 5,567 | |||||||
Segment operating income | (82 | ) | 353 | -1 | 271 | ||||||||
Unallocated expenses | 239 | ||||||||||||
Consolidated loss from operations | $ | 32 | |||||||||||
Year ended December 31, 2013 | |||||||||||||
Defense and aerospace | Mobile resource management | Consolidated | |||||||||||
Revenues from external customers | $ | 11,316 | $ | 24,255 | $ | 35,571 | |||||||
Segment operating income | 733 | 5,916 | -1 | 6,649 | |||||||||
Unallocated expenses | 1,367 | ||||||||||||
Consolidated loss from operations | $ | 5,282 | |||||||||||
-1 | Excludes $93 of intangible assets amortization for the three months ended March 31, 2014 ($657 for the year ended December 31, 2013). | ||||||||||||
DESCRIPTION_OF_BUSINESS_Detail
DESCRIPTION OF BUSINESS (Details) | 3 Months Ended | 1 Months Ended | 3 Months Ended | 3 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | ||||||||||||||||||||||||||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2014 | Sep. 01, 2011 | Mar. 31, 2014 | Sep. 07, 2012 | Mar. 08, 2013 | Sep. 01, 2011 | Mar. 08, 2013 | Sep. 07, 2012 | Mar. 08, 2013 | Jan. 28, 2013 | 31-May-13 | Aug. 18, 2013 | 28-May-13 | Sep. 07, 2012 | Sep. 07, 2012 | Mar. 31, 2014 | Jan. 21, 2013 | 28-May-13 | Nov. 14, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Dec. 31, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 |
USD ($) | USD ($) | USD ($) | First Note [Member] | First Note [Member] | First Note [Member] | First Note [Member] | Second Note [Member] | Second Note [Member] | First Warrant [Member] | First Warrant [Member] | Second Warrant [Member] | Second Warrant [Member] | Amended and Restated Note and Warrant Purchase Agreement [Member] | Amended and Restated Note and Warrant Purchase Agreement [Member] | First Note And Second Note [Member] | Micronet Limited [Member] | Micronet Limited [Member] | Micronet Limited [Member] | Micronet Limited [Member] | Micronet Limited [Member] | Micronet Limited [Member] | Micronet Limited [Member] | Micronet Limited [Member] | Micronet Limited [Member] | Micronet Limited [Member] | Micronet Limited [Member] | Micronet Limited [Member] | Micronet Limited [Member] | Micronet Limited [Member] | Micronet Limited [Member] | Micronet Limited [Member] | Micronet Limited [Member] | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | ILS | Call Option One [Member] | Call Option One [Member] | Call Option One [Member] | Call Option One [Member] | Call Option Two [Member] | Call Option Two [Member] | Call Option Two [Member] | Call Option Two [Member] | Call Option Two [Member] | Put Options [Member] | Put Options [Member] | |||||||||||||
USD ($) | ILS | USD ($) | ILS | Maximum [Member] | Maximum [Member] | Maximum [Member] | USD ($) | ILS | |||||||||||||||||||||||||
USD ($) | ILS | ||||||||||||||||||||||||||||||||
DESCRIPTION OF BUSINESS [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of subsidiaries | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Organization and Description of Business | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 54.30% | 51.00% | 47.50% | 47.50% | 52.26% | 48.06% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Secured debt | ' | ' | ' | ' | ' | ' | $3,000 | ' | $3,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount payable | ' | ' | ' | ' | ' | ' | ' | ' | 1,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maturity date | ' | ' | ' | ' | ' | 30-Dec-13 | ' | 10-Jan-15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate | ' | ' | ' | ' | ' | ' | 8.00% | ' | 8.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual principal payment | ' | ' | ' | ' | ' | ' | 1,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7-Sep-12 | 7-Sep-12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayments of Long-term Debt | 786 | ' | 525 | 1,032 | 282 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,185 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares acquired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 600,000 | 996,000 | 8,256,000 | 8,256,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Consideration paid with cash | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 676 | 558 | 4,300 | 17,300 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of additional shares entitled to be purchased | ' | 1,012,500 | ' | ' | ' | ' | ' | ' | ' | ' | 476,113 | ' | 300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 996,000 | 996,000 | ' | ' | 1,200,000 | 1,200,000 | 18,850,000 | ' | ' | 1,000,002 | 1,000,002 |
Number of additional shares, percentage of issued and outstanding shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.49% | 5.49% | 6.62% | 6.62% | ' | ' | ' | 5.73% | 5.73% |
Percentage of outstanding shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12.00% | ' | ' | 18.30% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity financing, amount to be retained | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity financing, percentage of excess amount retained | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 75.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity financing, percentage of excess amount used for payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of additional shares, price per share | ' | 6.25 | ' | ' | ' | ' | ' | ' | ' | 1 | 1 | ' | 1.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of gross profit per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | 25.00% | ' | ' | ' | ' | ' |
Purchase price per share | ' | $5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.60 | 2.1 | $0.60 | 2.1 | ' | $0.86 | 3 | $0.63 | 2.2 |
Shares issued, shares | ' | 1,863,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 250,633 | ' | 726,746 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Offering price per warrant | ' | $0.01 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from public offering | ' | 9,324 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance costs | ' | $1,921 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
FAIR_VALUE_MEASUREMENTS_Detail
FAIR VALUE MEASUREMENTS (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Level 1 [Member] | ' | ' |
Financial assets and liabilities measured at fair value | ' | ' |
Cash and cash equivalents | $11,959 | $12,825 |
Marketable securities | 6,964 | 6,969 |
Derivative asset- call option | ' | ' |
Financial assets and liabilitied measured at fair value | 18,923 | 19,794 |
Level 2 [Member] | ' | ' |
Financial assets and liabilities measured at fair value | ' | ' |
Cash and cash equivalents | ' | ' |
Marketable securities | ' | ' |
Derivative asset- call option | 532 | 460 |
Financial assets and liabilitied measured at fair value | 532 | 460 |
Level 3 [Member] | ' | ' |
Financial assets and liabilities measured at fair value | ' | ' |
Cash and cash equivalents | ' | ' |
Marketable securities | ' | ' |
Derivative asset- call option | ' | ' |
Financial assets and liabilitied measured at fair value | ' | ' |
Total [Member] | ' | ' |
Financial assets and liabilities measured at fair value | ' | ' |
Cash and cash equivalents | 11,959 | 12,825 |
Marketable securities | 6,964 | 6,969 |
Derivative asset- call option | 532 | 460 |
Financial assets and liabilitied measured at fair value | $19,455 | $20,254 |
INVENTORIES_Details
INVENTORIES (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
INVENTORIES [Abstract] | ' | ' |
Raw materials | $3,732 | $3,814 |
Work in process | 685 | 510 |
Inventories | $4,417 | $4,324 |
CONCENTRATIONS_Details
CONCENTRATIONS (Details) (Sales [Member]) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Sales [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration risk percentage | 85.48% | 85.40% |
SEGMENTS_Details
SEGMENTS (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | ||
Defense and aerospace [Member] | Defense and aerospace [Member] | Mobile resource management [Member] | Mobile resource management [Member] | Consolidated [Member] | Consolidated [Member] | |||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ||
Revenues from external customers | ' | ' | $2,232 | $11,316 | $3,335 | $24,255 | $5,567 | $35,571 | ||
Segment operating income | -60 | 1,462 | -82 | 733 | 353 | [1] | 5,916 | [1] | 271 | 6,649 |
Unallocated expenses | ' | ' | ' | ' | ' | ' | 239 | 1,367 | ||
Consolidated loss from operations | ' | ' | ' | ' | ' | ' | 32 | 5,282 | ||
Amortization of intangible assets | $93 | $378 | ' | ' | $93 | $657 | ' | ' | ||
[1] | Excludes $93 of intangible assets amortization for the three months ended March 31, 2014 ($657 for the year ended December 31, 2013). |
SUBSEQUENT_EVENTS_Details
SUBSEQUENT EVENTS (Details) (Subsequent Event [Member], USD $) | 1 Months Ended |
In Thousands, unless otherwise specified | 6-May-14 |
Subsequent Event [Member] | ' |
Subsequent Event [Line Items] | ' |
Asset purchase agreement, purchase price | $6,500 |
Asset purchase agreement, amount to be paid for existing and future inventory | 1,300 |
Asset purchase agreement, amount to be placed in escrow | $650 |