Tingo (TIOG) 10-Q14 Aug 142014 Q2 Quarterly reportFinancial data

Company Profile

Document_and_Entity_Informatio

Document and Entity Information	6 Months Ended
Document and Entity Information	Jun. 30, 2014	Aug. 14, 2014
Document and Entity Information [Abstract]	'	'
Document Type	'10-Q	'
Amendment Flag	'false	'
Document Period End Date	30-Jun-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	'Q2	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	5,831,246

CONSOLIDATED_BALANCE_SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)	Jun. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Current Assets:	'	'
Cash and cash equivalents	$9,223	$12,825
Marketable securities	7,124	6,969
Trade accounts receivable, net	12,813	13,467
Inventories	6,509	4,324
Derivative asset - call options	'	460
Other account receivable	1,515	1,165
Total current assets	37,184	39,210
Property, and equipment, net	2,433	2,440
Intangible assets and others, net	5,180	1,076
Goodwill	1,466	'
Long term deposit	74	103
Total long term assets	9,153	3,619
Total assets	46,337	42,829
Current Liabilities:	'	'
Short term bank credit and current portion of long term bank loans	8,700	5,058
Current portion of long term notes and convertible debenture, net of discount	989	'
Trade accounts payable	5,310	4,361
Other accounts payable	2,599	3,355
Total current liabilities	17,598	12,774
Long term loans from banks and others	5,492	3,130
Long term notes, net of discount	'	933
Finance lease	88	109
Accrued severance pay, net	125	172
Deferred tax liabilities, net	85	113
Total long term liabilities	5,790	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 June 30, 2014 and December 31, 2013	6	6
Additional paid in capital	7,486	8,053
Accumulated other comprehensive income	1,559	1,389
Retained earnings	6,817	8,423
Micronet Enertec stockholders' equity	15,868	17,871
Non-controlling interests	7,081	7,727
Total equity	22,949	25,598
Total liabilities and equity	$46,337	$42,829

CONSOLIDATED_BALANCE_SHEETS_Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Jun. 30, 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		6 Months Ended
In Thousands, except Share data, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Consolidated Statements of Income and Other Comprehensive Income [Abstract]	'	'	'	'
Revenues	$6,586	$7,771	$12,153	$18,132
Cost of revenues	4,729	4,903	8,244	11,618
Gross profit	1,857	2,868	3,909	6,514
Operating expenses:	'	'	'	'
Research and development	874	680	1,618	1,389
Selling and marketing	368	364	759	678
General and administrative	1,598	866	2,482	1,650
Amortization of intangible assets	158	93	251	471
Total operating expenses	2,998	2,003	5,110	4,188
Income (loss) from operations	-1,141	865	-1,201	2,326
Financial expenses, net	588	717	634	1,848
Income (loss) before provision for income taxes	-1,729	148	-1,835	478
Taxes on income	-116	11	-37	130
Net income (loss)	-1,613	137	-1,798	348
Net income (loss) attributable to non-controlling interests	-339	364	-192	1,037
Net loss attributable to Micronet Enertec	($1,274)	($227)	($1,606)	($689)
Loss per share attributable to Micronet Enertec:	'	'	'	'
Basic and diluted	($0.22)	($0.04)	($0.28)	($0.18)
Weighted average common shares outstanding:	'	'	'	'
Basic and diluted	5,831,246	5,210,247	5,831,246	3,725,998

CONSOLIDATED_STATEMENTS_OF_COM

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract]	'	'	'	'
Net income (loss)	($1,613)	$137	($1,798)	$348
Other comprehensive income (loss), net of tax:	'	'	'	'
Currency translation adjustment	238	115	212	724
Total comprehensive income (loss)	-1,375	252	-1,586	1,072
Comprehensive income (loss) attributable to the non-controlling interests	220	-423	149	-1,137
Comprehensive loss attributable to Micronet Enertec	($1,595)	($171)	($1,735)	($65)

CONSOLIDATED_STATEMENTS_OF_CAS

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	3 Months Ended	6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2014	Jun. 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:	'	'	'
Net income (loss)	($1,613)	($1,798)	$348
Adjustments to reconcile net income (loss) to net cash provided by operating activities:	'	'	'
Depreciation and amortization	'	428	683
Change in value of marketable securities	'	41	-66
Change in fair value of derivatives, net	'	308	193
Change in deferred taxes, net	'	-179	-287
Accrued interest on bank loans	'	127	211
Amortization of discount of long term notes, net	'	56	1,238
Stock based compensation	'	13	6
Changes in operating assets and liabilities:	'	'	'
Decrease (increase) in trade account receivables	'	800	-645
Decrease (increase) in inventories	'	-725	2,437
Decrease in accrued severance pay, net	'	-48	-879
Increase in other account receivables	'	-289	-371
Decrease (increase) in trade account payables	'	949	-1,720
Decrease in other account payables	'	-1,072	-1,012
Net cash provided by (used in) operating activities	'	-1,389	136
CASH FLOWS FROM INVESTING ACTIVITIES:	'	'	'
Purchase of property and equipment	'	-123	-150
Acquisition of business, net of cash acquired (Appendix A)	'	-6,896	'
Acquisition of marketable securities	'	-196	-105
Net cash used in investing activities	'	-7,215	-255
CASH FLOWS FROM FINANCING ACTIVITIES:	'	'	'
Short term bank credit	'	'	-1,058
Receipt of long term loans from banks	'	5,962	'
Issuance of note and warrants	'	'	8,671
Repayment of convertible note	'	'	-1,468
Exercise of call option over noncontrolling interest	'	-925	-312
Dividend paid to non-controlling interest	'	'	-681
Net cash provided by financing activities	'	5,037	5,152
NET CASH INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	'	-3,567	5,033
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	'	12,825	10,611
TRANSLATION ADJUSTMENT ON CASH AND CASH EQUIVALENTS	'	-35	191
CASH AND CASH EQUIVALENTS AT END OF PERIOD	9,223	9,223	15,835
Acquisition of business, net of cash acquired:	'	'	'
Inventory	-1,360	-1,360	'
Property and equipment	-47	-47	'
Intangible assets	-4,232	-4,232	'
Goodwill	-1,466	-1,466	'
Total assets acquired	-7,105	-7,105	'
Liability to seller	209	209	'
Net cash provided by acquisition	($6,896)	($6,896)	'

GENERAL

GENERAL	6 Months Ended
GENERAL	Jun. 30, 2014
GENERAL [Abstract]	'
GENERAL	'
	NOTE 1 - GENERAL

	A. Overview

	Micronet Enertec Technologies, Inc., a U.S. based Delaware corporation was formed on January 31, 2002 (Collectively, "we," "Micronet Enertec" or the "Company").

	We operate through two Israel-based companies, Enertec Systems 2001 Ltd ("Enertec"), our wholly-owned subsidiary, and Micronet Ltd ("Micronet"), in which we currently hold 62.54% of the outstanding issued share capital and is therefore controlled by us.

	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 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. Micronet Acquisition

	On September 7, 2012, we, through our wholly-owned subsidiary and holding company, 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"). As described below, 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 62.5% of the outstanding ordinary shares of Micronet. The Agreement also includes two call options granted to the Company (via Enertec Electronics) and a put option granted to Sellers.

	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 Micronet acquisition Agreement and acquired an additional 996,000 ordinary shares of Micronet for total consideration of $558, increasing its ownership at such time 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 from a former executive of Micronet for consideration of $676 and as a result, increased its holdings at such date to 54.3% of the issued and outstanding shares of Micronet. These holdings were thereafter diluted on November 4, 2013 as a result of the exercise of certain options by Micronet officers. On June 11, 2014, the Company, via Enertec Electronics, exercised its right pursuant to the initial call option granted under the Micronet acquisition Agreement and acquired 1,200,000 ordinary shares of Micronet for total consideration of $925, increasing its ownership at such time to 58.6% of the issued and outstanding shares of Micronet. On July 6, 2014, the Company, via Enertec Electronics, acquired 736,341 shares of Micronet from Mr. Rafi Katz, Micronet's former Chief Executive Officer for consideration of $642. Following the completion of this last purchase, the Company increased its ownership in Micronet to 62.54% of the issued and outstanding shares of Micronet which reflects its holdings as of the date hereof.

	C. 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.

	D. Micronet Acquisition of Beijer US Vehicle Operations

	On June 2, 2014, the Company through Micronet, its 62.54% subsidiary, completed the acquisition of certain assets and liabilities (the "Transaction") of Beijer Electronics Inc's. (the "Seller") U.S. vehicle business and operations related to the supply of panels to various transportation sectors (the "Vehicle Business"), pursuant to an Asset Purchase Agreement dated May 6, 2014 (the "Asset Purchase Agreement"). The total purchase price of the Transaction was $ 7,105 out of which $209 will be paid within 90 days following the closing subject to certain inventory adjustments and review. The Vehicle Business results of operations were included in our consolidated reports commencing on the closing date.

	The Transaction was financed through, among others, a loan granted to Micronet pursuant to a loan agreement (the "Loan Agreement") entered between Micronet and the First International Bank of Israel (the "Bank" and the "Loan", respectively). Under the Loan Agreement, the Bank loaned Micronet $4,850 for the financing of the Transaction. Pursuant to the terms of the Loan Agreement, $2,425 of the Loan bears interest at a quarterly adjustable rate of Prime plus 1.5 percent (3.75% percent as of the date of the Loan) (the "Long Term Portion"). The Long Term Portion plus interest is due and payable in twelve equal consecutive quarterly installments beginning on August 29, 2014. The balance of the Loan in the amount of $2,425 bears interest at a quarterly adjustable rate of Prime plus 1.2 percent (3.45% percent as of the date of the Loan) (the "Short Term Portion"). The Short Term Portion is due and payable within one year from the date of the Loan, subject to renewal, and the interest on the Short Term Portion is due and payable every quarter beginning on August 29, 2014. The Loan is secured mainly by a floating charge against Micronet's assets and a mortgage on a building owned by Micronet. The Loan is subject to customary covenants, terms, conditions, events of default and certain pre-payment provisions.

	The purchase consideration was allocated to the tangible assets and intangible assets acquired based on their estimated fair values. The fair value assigned to identifiable intangible assets acquired has been determined by using valuation methods that discount expected future cash flows to present value using estimates and assumptions determined by management. The Company determined that the fair values of assets acquired exceeded the purchase price by approximately $1,466, which is recognized as goodwill. Upon the purchase price allocation, and an amount of $1,680 was allocated to technology to be amortized over a 5-year period, an amount of $2,500 was allocated to estimated fair value of the customer relations intangible asset to be amortized over a 5-year period. The table below summarizes the estimates of the fair value of assets acquired at the purchase date.

	Inventories	$	1,360
	Property and equipment		47
	Identifiable intangible assets:
	Customer relations		2,552
	Core technology		1,680
	Goodwill		1,466
	Total assets acquired	$	7,105

	The contribution of the Vehicle Business results to our consolidated revenue net loss was $74 for the six months ended June 30, 2014. The transaction costs amounted to $290 and were charged mainly to general and administrative expenses.

	The unaudited pro forma financial information in the table below summarizes the combined results of our operations and those of the Vehicle Business for the periods shown as though the Transaction occurred as of the beginning of fiscal year 2013. The pro forma financial information for the periods presented includes the business combination accounting effects of the Transaction, including amortization charges from acquired intangible assets. The pro forma financial information presented below is for informational purposes only, is subject to a number of estimates, assumptions and other uncertainties, and is not indicative of the results of operations that would have been achieved if the Transaction had taken place at January 1, 2013. The unaudited pro forma financial information is as follows:

		Six Months Ended June 30,
		2014			2013
	Total revenues	$	16,542		$	21,969
	Net income (loss)	$	(1,508	)	$	(949	)
	Basic earnings (losses) per share	$	(0.26	)	$	(0.25	)
	Diluted earnings (losses) per share	$	(0.26	)	$	(0.25	)

BASIS_OF_PRESENTATION_AND_CONS

BASIS OF PRESENTATION AND CONSOLIDATION	6 Months Ended
BASIS OF PRESENTATION AND CONSOLIDATION	Jun. 30, 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 U.S. Securities and Exchange Commission, or 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 June 30, 2014 and the results of operations and cash flows for the periods presented. The results of operations for the six months ended June 30, 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 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 Accounting Standards Update ("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, Presentation of Financial Statements (Topic 205( and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. The amendments in this standard change the requirements for reporting discontinued operations in Subtopic 205-20. The amendments in this update will be effective prospectively for annual periods beginning on or after December 15, 2014, and interim periods within those years. The Company does not expect material impacts on the consolidated financial statements upon adoption.

	In May 2014, the FASB issued ASU No. 2014-09, Revenue from contracts with customers (Topic 606). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply a five step methodology:

	Step 1: Identify the contract(s) with a customer.
	Step 2: Identify the performance obligations in the contract.
	Step 3: Determine the transaction price.
	Step 4: Allocate the transaction price to the performance obligations in the contract.
	Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation.

	An entity should apply the amendments in this ASU using one of the following two methods:
	1. Retrospectively to each prior reporting period presented (along with some practical expedients);or
	2. Retrospectively with the cumulative effect of initially applying this ASU recognized at the date of initial application.
	The amendments in this ASU will be effective prospectively for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The Company does not expect material impacts on the consolidated financial statements upon adoption.

FAIR_VALUE_MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
FAIR VALUE MEASUREMENTS	Jun. 30, 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 June 30, 2014 and December 31, 2013, are summarized below:

		Fair value measurements using input type
		30-Jun-14
		Level 1		Level 2			Level 3		Total

	Cash and cash equivalents	$	9,223	$	-		$	-	$	9,223
	Marketable securities		7,124		-			-		7,124
	Derivative liabilities - phantom option		-		(86	)		-		(86	)
		$	16,347	$	(86	)	$	-	$	16,261

		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	6 Months Ended
	Jun. 30, 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:

		June 30,		December 31,
		2014		2013
	Raw materials	$	5,786	$	3,814
	Work in process		723		510
		$	6,509	$	4,324

CONCENTRATION_OF_CREDIT_RISK

CONCENTRATION OF CREDIT RISK	6 Months Ended
CONCENTRATION OF CREDIT RISK	Jun. 30, 2014
CONCENTRATION OF CREDIT RISK [Abstract]	'
CONCENTRATION OF CREDIT RISK	'

	NOTE 5 - CONCENTRATION OF CREDIT RISK

	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 and six months ended June 30, 2014, approximately 59.33% and 66.68% of our sales were from two major customers, respectively, compared to 80.24% and 80.18% from two major customers for the three and six months ended June 30, 2013, respectively.

SEGMENTS

SEGMENTS	6 Months Ended
SEGMENTS	Jun. 30, 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:

			Six months ended June 30, 2014
			Defense and aerospace			Mobile resource management			Consolidated

	Revenues from external customers		$	4,852		$	7,301		$	12,153
	Segment operating loss			(6	)		(332	)		(338	)
	Unallocated expenses								(A) 863
	Consolidated loss from operations								$	(1,201	)

			Six months ended June 30, 2013
			Defense and aerospace			Mobile resource management			Consolidated

	Revenues from external customers		$	5,242		$	12,890		$	18,132
	Segment operating income			194			2,781			2,975
	Unallocated expenses								(A) 649
	Consolidated loss from operations								$	2,326

	(A)	Includes $251 of intangible assets amortization for the six months ended June 30, 2014 ($471 for the six months ended June 30, 2013).

SUBSEQUENT_EVENTS

SUBSEQUENT EVENTS	6 Months Ended
SUBSEQUENT EVENTS	Jun. 30, 2014
SUBSEQUENT EVENTS [Abstract]	'
SUBSEQUENT EVENTS	'
	NOTE 7 -SUBSEQUENT EVENTS

	On July 6, 2014, the Company, via its wholly owned subsidiary Enertec Electronics acquired 736,341 shares of Micronet, a 58.6% owned subsidiary of the Company, constituting 3.91% of the issued and outstanding shares of Micronet from Mr. Rafi Katz, Micronet's former Chief Executive Officer. The Company paid in consideration for the purchased shares the amount of $642. Following the closing of this transaction, the Company increased its ownership in Micronet to 62.5% of the issued and outstanding shares of Micronet.

BASIS_OF_PRESENTATION_AND_CONS1

BASIS OF PRESENTATION AND CONSOLIDATION (Policy)	6 Months Ended
BASIS OF PRESENTATION AND CONSOLIDATION (Policy)	Jun. 30, 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 U.S. Securities and Exchange Commission, or 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 June 30, 2014 and the results of operations and cash flows for the periods presented. The results of operations for the six months ended June 30, 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 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 Accounting Standards Update ("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, Presentation of Financial Statements (Topic 205( and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. The amendments in this standard change the requirements for reporting discontinued operations in Subtopic 205-20. The amendments in this update will be effective prospectively for annual periods beginning on or after December 15, 2014, and interim periods within those years. The Company does not expect material impacts on the consolidated financial statements upon adoption.

	In May 2014, the FASB issued ASU No. 2014-09, Revenue from contracts with customers (Topic 606). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply a five step methodology:

	Step 1: Identify the contract(s) with a customer.
	Step 2: Identify the performance obligations in the contract.
	Step 3: Determine the transaction price.
	Step 4: Allocate the transaction price to the performance obligations in the contract.
	Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation.

	An entity should apply the amendments in this ASU using one of the following two methods:
	1. Retrospectively to each prior reporting period presented (along with some practical expedients);or
	2. Retrospectively with the cumulative effect of initially applying this ASU recognized at the date of initial application.
	The amendments in this ASU will be effective prospectively for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The Company does not expect material impacts on the consolidated financial statements upon adoption.

GENERAL_Tables

GENERAL (Tables)	6 Months Ended
GENERAL (Tables)	Jun. 30, 2014
GENERAL [Abstract]	'
Schedule of Assets Acquired	'

	Inventories	$	1,360
	Property and equipment		47
	Identifiable intangible assets:
	Customer relations		2,552
	Core technology		1,680
	Goodwill		1,466
	Total assets acquired	$	7,105

Schedule of Pro Forma Results	'

		Six Months Ended June 30,
		2014			2013
	Total revenues	$	16,542		$	21,969
	Net income (loss)	$	(1,508	)	$	(949	)
	Basic earnings (losses) per share	$	(0.26	)	$	(0.25	)
	Diluted earnings (losses) per share	$	(0.26	)	$	(0.25	)

FAIR_VALUE_MEASUREMENTS_Tables

FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
FAIR VALUE MEASUREMENTS (Tables)	Jun. 30, 2014
FAIR VALUE MEASUREMENTS [Abstract]	'
Schedule of Financial Assets and Liabilitites Measured at Fair Value	'

		Fair value measurements using input type
		30-Jun-14
		Level 1		Level 2			Level 3		Total

	Cash and cash equivalents	$	9,223	$	-		$	-	$	9,223
	Marketable securities		7,124		-			-		7,124
	Derivative liabilities - phantom option		-		(86	)		-		(86	)
		$	16,347	$	(86	)	$	-	$	16,261

		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)	6 Months Ended
	Jun. 30, 2014
INVENTORIES [Abstract]	'
Schedule of Inventories	'

		June 30,		December 31,
		2014		2013
	Raw materials	$	5,786	$	3,814
	Work in process		723		510
		$	6,509	$	4,324

SEGMENTS_Tables

SEGMENTS (Tables)	6 Months Ended
SEGMENTS (Tables)	Jun. 30, 2014
SEGMENTS [Abstract]	'
Schedule of Operating Segments	'

			Six months ended June 30, 2014
			Defense and aerospace			Mobile resource management			Consolidated

	Revenues from external customers		$	4,852		$	7,301		$	12,153
	Segment operating loss			(6	)		(332	)		(338	)
	Unallocated expenses								(A) 863
	Consolidated loss from operations								$	(1,201	)

			Six months ended June 30, 2013
			Defense and aerospace			Mobile resource management			Consolidated

	Revenues from external customers		$	5,242		$	12,890		$	18,132
	Segment operating income			194			2,781			2,975
	Unallocated expenses								(A) 649
	Consolidated loss from operations								$	2,326

	(A)	Includes $251 of intangible assets amortization for the six months ended June 30, 2014 ($471 for the six months ended June 30, 2013).

GENERAL_Narrative_Details

GENERAL (Narrative) (Details) (USD $)

3 Months Ended

6 Months Ended

1 Months Ended

6 Months Ended

1 Months Ended

In Thousands, except Share data, unless otherwise specified

Jun. 30, 2013

Jun. 30, 2014

Jun. 30, 2013

Jul. 06, 2014

Jun. 11, 2014

Aug. 18, 2013

28-May-13

Sep. 07, 2012

Jun. 30, 2014

28-May-13

Nov. 14, 2012

Jun. 02, 2014

Jun. 30, 2014

Jun. 02, 2014

Micronet Limited [Member]

Vehicle Business [Member]

Call Option One [Member]

Customer relations [Member]

Core technology [Member]

First Half Of Loan [Member]

Second Half Of Loan [Member]

GENERAL [Abstract]

Number of subsidiaries

General [Line Items]

Ownership percentage

62.54%

58.60%

54.30%

51.00%

47.50%

58.60%

Acquisition date

7-Sep-12

Number of shares acquired

736,341

1,200,000

600,000

996,000

Consideration paid with cash

$642

$925

$676

$558

$7,105

Contingent consideration in respect of acquisition

209

Receipt of long term loans from banks

5,962

4,850

2,425

Basis spread

1.50%

1.20%

Interest rate

3.75%

3.45%

Goodwill

1,466

Identifiable intangible assets

4,232

2,552

1,680

Amortization period

'5 years

Contribution to consolidated revenue

Contribution to net income

Transaction costs

290

Number of additional shares entitled to be purchased

1,012,500

996,000

Number of additional shares, price per share

$6.25

Purchase price per share

Shares issued, shares

1,863,000

Offering price per warrant

$0.01

Proceeds from public offering

9,324

Issuance costs

$1,921

GENERAL_Schedule_of_Assets_Acq

GENERAL (Schedule of Assets Acquired) (Details) (USD $)	Jun. 30, 2014	Jun. 02, 2014	Jun. 02, 2014	Jun. 02, 2014
In Thousands, unless otherwise specified		Vehicle Business [Member]	Vehicle Business [Member]	Vehicle Business [Member]
			Customer relations [Member]	Core technology [Member]
Business Acquisition [Line Items]	'	'	'	'
Inventories	$1,360	$1,360	'	'
Property and equipment	47	47	'	'
Identifiable intangible assets	4,232	'	2,552	1,680
Goodwill	1,466	1,466	'	'
Net cash provided by acquisition	$6,896	$7,105	'	'

GENERAL_Schedule_of_Pro_Forma_

GENERAL (Schedule of Pro Forma Results) (Details) (Vehicle Business [Member], USD $)	6 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013
Vehicle Business [Member]	'	'
Business Acquisition [Line Items]	'	'
Total revenues	$16,542	$21,969
Net income (loss)	($1,508)	($949)
Basic earnings (losses) per share	($0.26)	($0.25)
Diluted earnings (losses) per share	($0.26)	($0.25)

FAIR_VALUE_MEASUREMENTS_Detail

FAIR VALUE MEASUREMENTS (Details) (USD $)	Jun. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Level 1 [Member]	'	'
Financial assets and liabilities measured at fair value	'	'
Cash and cash equivalents	$9,223	$12,825
Marketable securities	7,124	6,969
Derivative liabilities - phantom option	'	'
Derivative asset - call option	'	'
Financial assets and liabilitied measured at fair value	16,347	19,794
Level 2 [Member]	'	'
Financial assets and liabilities measured at fair value	'	'
Cash and cash equivalents	'	'
Marketable securities	'	'
Derivative liabilities - phantom option	-86	'
Derivative asset - call option	'	460
Financial assets and liabilitied measured at fair value	-86	460
Level 3 [Member]	'	'
Financial assets and liabilities measured at fair value	'	'
Cash and cash equivalents	'	'
Marketable securities	'	'
Derivative liabilities - phantom option	'	'
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	9,223	12,825
Marketable securities	7,124	6,969
Derivative liabilities - phantom option	-86	'
Derivative asset - call option	'	460
Financial assets and liabilitied measured at fair value	$16,261	$20,254

INVENTORIES_Details

INVENTORIES (Details) (USD $)	Jun. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
INVENTORIES [Abstract]	'	'
Raw materials	$5,786	$3,814
Work in process	723	510
Inventories	$6,509	$4,324

CONCENTRATION_OF_CREDIT_RISK_D

CONCENTRATION OF CREDIT RISK (Details) (Sales [Member])	3 Months Ended		6 Months Ended
CONCENTRATION OF CREDIT RISK (Details) (Sales [Member])	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Sales [Member]	'	'	'	'
Concentration Risk [Line Items]	'	'	'	'
Concentration risk percentage	59.33%	80.24%	66.68%	80.18%

SEGMENTS_Details

SEGMENTS (Details) (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014		Jun. 30, 2013
Segment Reporting Information [Line Items]	'	'	'		'
Segment operating income	($1,141)	$865	($1,201)		$2,326
Amortization of intangible assets	158	93	251		471
Defense and aerospace [Member]	'	'	'		'
Segment Reporting Information [Line Items]	'	'	'		'
Revenues from external customers	'	'	4,852		5,242
Segment operating income	'	'	-6		194
Mobile resource management [Member]	'	'	'		'
Segment Reporting Information [Line Items]	'	'	'		'
Revenues from external customers	'	'	7,301		12,890
Segment operating income	'	'	-332		2,781
Amortization of intangible assets	'	'	251		471
Consolidated [Member]	'	'	'		'
Segment Reporting Information [Line Items]	'	'	'		'
Revenues from external customers	'	'	12,153		18,132
Segment operating income	'	'	-338		2,975
Unallocated expenses	'	'	863	[1]	649	[1]
Consolidated loss from operations	'	'	($1,201)		$2,326

[1]	Includes $251 of intangible assets amortization for the six months ended June 30, 2014 ($471 for the six months ended June 30, 2013).

SUBSEQUENT_EVENTS_Details

SUBSEQUENT EVENTS (Details) (Micronet Limited [Member], USD $)	1 Months Ended
In Thousands, except Share data, unless otherwise specified	Jul. 06, 2014	Jun. 11, 2014	Aug. 18, 2013	28-May-13	Jun. 30, 2014	Sep. 07, 2012
Micronet Limited [Member]	'	'	'	'	'	'
Subsequent Event [Line Items]	'	'	'	'	'	'
Number of shares acquired	736,341	1,200,000	600,000	996,000	'	'
Ownership percentage	62.54%	58.60%	54.30%	51.00%	58.60%	47.50%
Number of additional shares, percentage of issued and outstanding shares	3.91%	'	'	'	'	'
Consideration paid with cash	$642	$925	$676	$558	'	'