Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 31, 2015 | Jun. 30, 2014 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | MICRONET ENERTEC TECHNOLOGIES, INC. | ||
Entity Central Index Key | 854800 | ||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Common Stock, Shares Outstanding | 5,856,246 | ||
Entity Public Float | $13,744,695 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $8,592 | $12,825 |
Marketable securities | 6,406 | 6,969 |
Trade account receivables, net | 14,152 | 13,467 |
Inventories | 6,658 | 4,324 |
Derivative asset - call options | 460 | |
Other accounts receivable | 1,249 | 1,165 |
Total current assets | 37,057 | 39,210 |
Property, and equipment, net | 1,948 | 2,440 |
Intangible assets and others, net | 4,416 | 1,076 |
Long term deposit | 46 | 103 |
Goodwill | 1,466 | |
Total long term assets | 7,876 | 3,619 |
Total assets | 44,933 | 42,829 |
LIABILITIES AND EQUITY | ||
Short term bank credit and current portion of long term bank loans | 9,416 | 5,058 |
Current portion of long term notes | 1,000 | |
Trade accounts payable | 7,588 | 4,361 |
Other accounts payable | 2,619 | 3,355 |
Total current liabilities | 20,623 | 12,774 |
Long term Loans from banks | 3,919 | 3,130 |
Long term notes, net of discount | 933 | |
Finance lease | 56 | 109 |
Accrued severance pay, net | 29 | 172 |
Deferred tax liabilities, net | 57 | 113 |
Total long term liabilities | 4,061 | 4,457 |
Stockholders' Equity: | ||
Preferred stock; $.001 par value, 5,000,000 shares authorized, none issued and outstanding | ||
Common stock; $.001 par value, 25,000,000 shares authorized, 5,856,246 and 5,831,246 shares issued and outstanding as of December 31, 2014 and 2013, respectively. | 6 | 6 |
Additional paid in capital | 7,505 | 8,053 |
Accumulated other comprehensive income | 325 | 1,389 |
Retained earnings | 6,284 | 8,423 |
Micronet Enertec stockholders equity | 14,120 | 17,871 |
Non-controlling interests | 6,129 | 7,727 |
Total equity | 20,249 | 25,598 |
Total Liabilities and equity | $44,933 | $42,829 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
CONSOLIDATED BALANCE SHEETS [Abstract] | ||
Preferred stock, par or stated value per share | $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 or stated value per share | $0.00 | $0.00 |
Common stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, shares issued | 5,856,246 | 5,831,246 |
Common stock, shares outstanding | 5,856,246 | 5,831,246 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
CONSOLIDATED STATEMENTS OF INCOME [Abstract] | ||
Revenues | $34,238 | $35,571 |
Cost of revenues | 24,180 | 22,298 |
Gross profit | 10,058 | 13,273 |
Operating expenses: | ||
Research and development | 2,807 | 2,675 |
Selling and marketing | 1,947 | 1,170 |
General and administrative | 6,290 | 4,179 |
Amortization of intangible assets | 850 | 657 |
Total operating expenses | 11,894 | 8,681 |
Income (loss) from operations | -1,836 | 4,592 |
Finance expense, net | -296 | -2,293 |
Other expense | -2 | |
Income (loss) before provision for income taxes | -2,132 | 2,297 |
Provision for income taxes | 242 | 496 |
Net income (loss) | -2,374 | 1,801 |
Net loss (income) attributable to non-controlling interests | 235 | -2,296 |
Net loss attributable to Micronet Enertec | ($2,139) | ($495) |
Loss per share attributable to Micronet Enertec: | ||
Basic | ($0.37) | ($0.10) |
Diluted | ($0.37) | ($0.10) |
Weighted average common shares outstanding: | ||
Basic | 5,834,371 | 5,089,122 |
Diluted | 5,834,371 | 5,089,122 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | ||
Net income (loss) | ($2,374) | $1,801 |
Other comprehensive income, net of tax: | ||
Currency translation adjustment | -1,086 | 1,742 |
Total comprehensive income (loss) | -3,460 | 3,543 |
Comprehensive loss (income) attributable to the non-controlling interests | 825 | -2,882 |
Comprehensive income (loss) attributable to Micronet Enertec | ($2,635) | $661 |
STATEMENTS_OF_CHANGES_IN_EQUIT
STATEMENTS OF CHANGES IN EQUITY (USD $) | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income | Non-controlling Interest | |
In Thousands, except Share data | |||||||
Beginning Balance at Dec. 31, 2012 | $16,868 | $3 | $957 | $8,918 | $233 | $6,757 | |
Beginning Balance, Shares at Dec. 31, 2012 | 3,241,500 | ||||||
Issuance of shares and warrants, net | 7,403 | 2 | 7,401 | ||||
Issuance of shares and warrants, net, shares | 1,863,000 | ||||||
Stock based compensation | 19 | 19 | |||||
Exercise of warrants to acquire common stock | 476 | 1 | 475 | ||||
Exercise of warrants to acquire common stock, shares | 726,746 | ||||||
Dividend paid to non-controlling interest | -1,481 | -1,481 | |||||
Comprehensive income (loss) | 3,543 | -495 | 1,156 | 2,882 | |||
Acquisition of non-controlling interest | -1,230 | -799 | -431 | ||||
Ending Balance at Dec. 31, 2013 | 25,598 | 6 | 8,053 | 8,423 | 1,389 | 7,727 | |
Ending Balance, Shares at Dec. 31, 2013 | 5,831,246 | 5,831,246 | |||||
Shares issued to service provider | 94 | 94 | |||||
Shares issued to service provider, shares | 25,000 | ||||||
Stock based compensation | 308 | 308 | |||||
Exercise of warrants to acquire common stock, shares | |||||||
Comprehensive income (loss) | -4,028 | -2,139 | -1,064 | -825 | [1] | ||
Acquisition of non-controlling interest | -1,723 | -950 | -773 | ||||
Ending Balance at Dec. 31, 2014 | $20,249 | $6 | $7,505 | $6,284 | $325 | $6,129 | |
Ending Balance, Shares at Dec. 31, 2014 | 5,856,246 | 5,856,246 | |||||
[1] | Includes $235 of net loss and $590 of other comprehensive income. |
STATEMENTS_OF_CHANGES_IN_EQUIT1
STATEMENTS OF CHANGES IN EQUITY (Parenthetical) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
STATEMENTS OF CHANGES IN EQUITY [Abstract] | |
Net loss (income) attributable to non-controlling interests | $235 |
Comprehensive income attributable to non-controlling interests | $590 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | ($2,374) | $1,801 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 1,377 | 984 |
Marketable securities | 883 | -439 |
Change in fair value of derivatives, net | 297 | 170 |
Change in deferred taxes, net | -191 | -208 |
Accrued interests on bank loans | 72 | 328 |
Amortization of discount and change in value of long term convertible debenture, net | 67 | 1,641 |
Stock based compensation | 402 | 19 |
Changes in operating assets and liabilities (net of impact of acquisition): | ||
Increase in trade account receivables | -1,643 | -2,769 |
Decrease (increase) in inventories | -1,874 | 3,853 |
Decrease in accrued severance pay, net | -143 | -966 |
Decrease (increase) in other account receivables | 106 | -378 |
Increase (decrease) in trade account payables | 2,528 | -340 |
Decrease in other account payables | -835 | -118 |
Net cash provided by (used in) operating activities | -1,328 | 3,578 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of property and equipment | -230 | -336 |
Marketable securities | -320 | -3,346 |
Acquisition of a business (Appendix A) | -7,105 | |
Net cash used in investing activities | -7,655 | -3,682 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Short term bank credit | 3,713 | 113 |
Issuance of share and warrants, net and exercise of warrants | 8,669 | |
Receipt of long term loan | 5,571 | 1,296 |
Repayment of convertible note | -773 | |
Repayment of long term banks loan | -2,454 | -2,179 |
Acquisition of non-controlling interest | -646 | -675 |
Exercise of call option over non-controlling interest | -925 | -310 |
Dividend paid to non-controlling interest | -1,481 | |
Repayment of long-term notes | -2,500 | |
Net cash provided by financing activities | 5,259 | 2,160 |
NET CASH INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | -3,724 | 2,056 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 12,825 | 10,611 |
TRANSLATION ADJUSTMENT OF CASH AND CASH EQUIVALENTS | -509 | 158 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 8,592 | 12,825 |
Supplemental disclosure of cash flow information: | ||
Interest | 226 | 311 |
Taxes | 119 | 1,354 |
Acquisition of a business, net of cash acquired: | ||
Inventory | -1,360 | |
Property and equipment | -47 | |
Intangible assets | -4,232 | |
Goodwill | -1,466 | |
Total | -7,105 | |
APPENDIX B - NON-CASH ACTIVITIES: | ||
Issuance costs paid in advance in 2012 | 1,269 | |
Exercise of call option over non-controlling interest | $152 | $242 |
DESCRIPTION_OF_BUSINESS
DESCRIPTION OF BUSINESS | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
DESCRIPTION OF BUSINESS [Abstract] | ||||||||||
DESCRIPTION OF BUSINESS | NOTE 1 — DESCRIPTION OF BUSINESS | |||||||||
Overview | ||||||||||
A | ||||||||||
Micronet Enertec Technologies, Inc., a U.S. based Delaware Corporation was formed in Delaware on January 31, 2002. On March 14, 2013 we changed our corporate name from Lapis Technologies, Inc. to Micronet Enertec Technologies, Inc. (“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 held 62.5% as of December 31, 2014 and is controlled by us. | ||||||||||
Micronet is a publicly traded company on the Tel Aviv Stock Exchange and operates in the growing commercial Mobile Resource Management, ("MRM") market. Micronet through both its Israeli and U.S. operational offices 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, ("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. Micronet Acquisition of Beijer U.S. Vehicle Operations | ||||||||||
On June 2, 2014, the Company, through Micronet, 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"). The total purchase price of the Transaction was $ 7,105. The Vehicle Business results of operations were included in our consolidated reports commencing on the closing date. Upon the closing of the Transaction, Micronet incorporated a wholly-owned U.S.-based subsidiary in the state of Utah under the name Micronet Inc., through which the purchased business is conducted. | ||||||||||
The Transaction was financed through, among other funds, 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 variable rate 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 tangible assets and intangible assets acquired based on their estimated fair values using a purchase price allocation made by an independent third party appraisal.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, an amount of $1,680 was allocated to technology to be amortized over a 5-year period, and an amount of $2,552 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 income and net income was $11,188 and $1,413, respectively, for the seven months ended December 31, 2014. The transaction costs amounted to $369 and were charged 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: | ||||||||||
Year Ended December 31, | Year Ended December 31, | |||||||||
2014 | 2013 | |||||||||
Total revenues | $ | 38,626 | $ | 46,303 | ||||||
Net loss attribute to Micronet Enertec | $ | (2,189 | ) | $ | (641 | ) | ||||
C. 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 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 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 62.5% of the issued and outstanding shares of Micronet which reflects its holdings as of the date hereof. | ||||||||||
Public Offering | ||||||||||
In April 2013, the Company closed an underwritten public offering of 1,863,000 shares of Common Stock, and warrants to purchase 931,500 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 warrants include only standard anti-dilution provisions. 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 as equity according to the appropriate accounting guidance. | ||||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||
Dec. 31, 2014 | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Basis of Presentation | |||
The accompanying consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). | |||
The consolidated financial statements include the financial statements of the Company and its wholly owned subsidiaries. All significant inter-company transactions and balances among the Company and its subsidiaries are eliminated upon consolidation. | |||
Functional Currency | |||
The functional currency of Micronet Enertec is the U.S. dollar. The functional currency of certain subsidiaries is their local currency. The financial statements of those companies are included in consolidation, based on translation into U.S. dollars. Assets and liabilities are translated at year-end exchange rates, while revenues and expenses are translated at monthly average exchange rates during the year. Differences resulting from translation are presented in the consolidated statements of comprehensive income. | |||
Use of Estimate | |||
The preparation of the 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 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 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 is ceased. Intercompany transactions and balances are eliminated upon consolidation. | |||
Cash and Cash Equivalents | |||
Cash equivalents are considered by the Company to be highly-liquid investments, including inter-alia, short-term deposits with banks, of which do not exceed maturities of three months at the time of deposit and which are not restricted. | |||
Investments in Marketable Securities | |||
Management determines the appropriate classification of its investments at the time of purchase and reevaluates such determinations at each balance sheet date. Investments in marketable securities are classified as “trading,” and unrealized gains or losses are reported in the statement of operations. | |||
Revenue Recognition | |||
The Company's subsidiary Enertec enters into long-term fixed-price contracts with customers to manufacture test systems, simulators, and airborne applications. Revenues on these long-term fixed-price contracts are recognized under the percentage-of-completion method. In using the percentage of completion method, revenues are generally recorded based on the percentage of cost incurred to date on a contract relative to the estimated total expected contract cost. Management uses historical experience, project plans and an assessment of the risks and uncertainties inherent in the arrangement to establish the total estimated costs. The percentage of completion is established by the costs incurred to date as a percentage of the estimated total costs of each contract (cost-to-cost method). Contract costs include all direct material and labor costs. The Company recognizes revenues on a project when persuasive evidence of an arrangement exists, recoverability is probable, and project costs are incurred. The Company recognizes contract losses, if any, in the period in which they first became evident. As of December 31, 2014 approximately $ 3,800 (on December 31, 2013: $4,300) of the accounts receivable balance was unbilled due to the customer's payment terms. | |||
Revenues from the sales of MRM products are recognized when persuasive evidence of an arrangement exists; delivery has occurred, fee to its customer is fixed and determinable; and collection of the resulting receivable is reasonably assured. The title and risk of loss passes to the customer, delivery is occurred and acceptance is satisfied as the product leaves the Company premises. | |||
Allowance for Doubtful Accounts | |||
The Company establishes an allowance for doubtful accounts to ensure trade and financing receivables are not overstated due to uncollectability. The allowance for doubtful accounts was based on specific receivables, which their collection, in the opinion of Company's management, is in doubt. Trade receivables are charged off in the period in which they are deemed to be uncollectible. As of December 31, 2014 and 2013, the allowance for doubtful accounts amounted to $1,289 and $324, respectively. | |||
Inventories | |||
Inventories of raw materials are stated at the lower of cost (first-in, first-out basis) or realizable value. Cost of work in process comprise direct materials, direct production costs and an allocation of production overheads based on normal operating capacity. | |||
Property and Equipment | |||
Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated by the straight-line method over their estimated useful lives. Annual rates of depreciation are as follows: | |||
Leasehold improvements | Over the shorter of the lease term or the life of the assets | ||
Machinery and equipment | 10 years | ||
Furniture and fixtures | 14 years | ||
Transportation equipment | 7 years | ||
Computer equipment | 3 years | ||
Stock Based Compensation | |||
The Company account for stock based compensation under the fair market value method under which compensation cost is measured at the grant date based on the value of the award and is recognized over the service period, which is usually the vesting period. For stock options, fair value is determined using an option-pricing model that takes into account the stock price at the grant date, the exercise price, the expected life of the option, the volatility of the underlying stock, the expected dividends on it, and the risk-free interest rate over the expected life of the option. | |||
Shipping and Handling Costs- | |||
Shipping and handling costs are included in cost of revenues and amounted to $263 and $295 for the years ended December 31, 2014 and 2013, respectively. | |||
Research and Development Costs | |||
Research and development costs are charged to statements of income as incurred net of grants from the Israel Office of the Chief Scientist of the Ministry of Economy (“OCS”). | |||
Advertising Costs- | |||
The Company expenses advertising costs as incurred. Advertising costs for the years ended December 31, 2014 and 2013 were $32 and $23 respectively. | |||
Earnings (loss) per Share | |||
Basic net earnings per share is computed based on the weighted average number of ordinary shares outstanding during each year. Diluted earnings per share is computed based on the weighted average number of ordinary shares outstanding during each year, plus dilutive potential ordinary shares considered outstanding during the year derived from potential exercise of warrants and stock options. | |||
Impairment of Long-Lived Assets | |||
The Company evaluates property and equipment and purchased intangible assets with finite lives for impairment whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable. The Company assesses the recoverability of the assets based on the undiscounted future cash flow and recognizes an impairment loss when the estimated undiscounted future cash flow expected to result from the use of the asset plus the net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. When the Company identifies an impairment, it reduces the carrying amount of the asset to its estimated fair value based on a discounted cash flow approach or, when available and appropriate, to comparable market values. During the years ending December 31, 2014, and 2013 no indicators of impairment have been identified. | |||
Intangible assets | |||
Intangible assets that are not considered to have an indefinite useful life are amortized using the straight-line basis over their estimated useful lives. The carrying amount of these assets is reviewed whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Recoverability of these assets is measured by comparison of the carrying amount of the asset to the future undiscounted cash flows the assets are expected to generate. If the asset is considered to be impaired, the amount of any impairment is measured as the difference between the carrying value and the fair value of the impaired asset. | |||
Goodwill | |||
Goodwill represents the excess of the purchase price in a business combination over the fair value of net tangible and intangible assets acquired. Goodwill is not amortized, but rather is subject to an annual impairment test. The Company has two operating segments: Mobile Resource Management and Defense and Aerospace. The goodwill impairment tests are conducted in two steps. In the first step, the Company determines the fair value of the reporting unit. If the net book value of the reporting unit exceeds its fair value, the Company would then perform the second step of the impairment test which requires allocation of the reporting unit's fair value of all of its assets and liabilities in a manner similar to an acquisition cost allocation, with any residual fair value being allocated to goodwill. The implied fair value of the goodwill is then compared to the carrying value to determine impairment, if any. As of December 31, 2014, the Company had a carrying amount of $1,466 from Micronet acquisition of the Vehicle Business. | |||
Comprehensive Income | |||
Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 220-10, “Reporting Comprehensive Income,” requires the Company to report in its consolidated financial statements, in addition to its net income, comprehensive income (loss), which includes all changes in equity during a period from non-owner sources including, as applicable, foreign currency items, and other items. | |||
The Company's other comprehensive income for all periods presented is related to the effect of foreign translation losses. | |||
Income Taxes | |||
Deferred taxes are determined utilizing the “asset and liability” method, whereby deferred tax asset and liability account balances are determined based on differences between financial reporting and the tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance, when it's more likely than not that deferred tax assets will not be realized in the foreseeable future. Deferred tax liabilities and assets are classified as current or non-current based on the expected reversal dates of the specific temporary differences. | |||
The Company applied FASB ASC Topic 740-10-05, “Income Taxes” which provides guidance for recognizing and measuring uncertain tax positions and prescribes a threshold condition that a tax position must meet for any of the benefits of the uncertain tax position to be recognized in the financial statements. It also provides accounting guidance on derecognizing, classification and disclosure of these uncertain tax positions. The Company's policy on classification of all interest and penalties related to unrecognized income tax positions, if any, is to present them as a component of income tax expense. | |||
Financial Instruments | |||
1 | Concentration of credit risks: Financial instruments that have the potential to expose the Company to credit risks are mainly cash and cash equivalents, bank deposit accounts, marketable securities and trade receivables. The Company holds cash and cash equivalents, securities and deposit accounts at large banks in Israel, thereby substantially reducing the risk of loss. With respect to trade receivables, the risk is limited due to the geographically spreading, nature and size of the entities that constitute the Company's customer base. The Company assesses the financial position of its customers prior to the engagement with them. The Company performs ongoing credit evaluations of its customers for the purpose of determining the appropriate allowance for doubtful accounts and generally does not require collateral. An appropriate allowance for doubtful accounts is included in the accounts. | ||
2 | Fair value measurement: The Company measures fair value and discloses fair value measurements for financial and non-financial assets and liabilities. Fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The accounting standard establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described below: | ||
Level 1: | Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. | ||
Level 2: | Observable prices that are based on inputs not quoted on active markets, but corroborated by market data. | ||
Level 3: | Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. | ||
In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible and considers counterparty credit risk in its assessment of fair value. | |||
Recent Accounting Pronouncements | |||
In July 2013, the FASB issued ASU No. 2013-11, “Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carry Forward, a Similar Tax Loss, or a Tax Credit Carry Forward Exists”, or ASU 2013-11. ASU 2013-11 eliminates diversity in practice regarding the presentation of an unrecognized tax benefit when a net operating loss carry forward or a tax credit carry forward exists. The adoption of ASU 2013-11 did not have a material impact on the Company's financial statements. | |||
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. The Company does not expect material impacts on its consolidated financial statements upon adoption. | |||
In May 2014, the FASB issued guidance on revenue from contracts with customers that will supersede the most current revenue recognition guidance, including industry-specific guidance. The underlying principle of the guidance is that an entity should recognize revenue upon the transfer of goods or services to customers in an amount that the entity expects to be entitled to in exchange for those goods or services. The guidance provides a five-step analysis of transactions to determine when and how revenue is recognized. Other major provisions include capitalization of certain contract costs, consideration of the time value of money in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. The guidance also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity's contracts with customers. The guidance is effective for annual periods beginning on or after December 15, 2016 (early adoption is not permitted). The guidance permits the use of either a retrospective or cumulative effect transition method. The Company is currently evaluating the impact of the amended guidance on its consolidated financial statements. | |||
In August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial statements – Going concern (subtopic 205-40), Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern” (“ASU 2014-15”). The new standard provides guidance on management's responsibility in evaluating whether there is substantial doubt about a company's ability to continue as a going concern and about related footnote disclosures. For each reporting period, management will be required to evaluate whether there are conditions or events that raise substantial doubt about a company's ability to continue as a going concern within one year from the date the financial statements are issued. ASU 2014-15 applies prospectively to annual periods ending after December 15, 2016, and to annual periods thereafter. Early application is permitted. The Company does not expect material impacts on its consolidated financial statements upon adoption. |
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS [Abstract] | ||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | NOTE 3 — FAIR VALUE MEASUREMENTS | |||||||||||||||||||||||
Items carried at fair value as of December 31, 2014 and 2013 are classified in the table below in one of the three categories described in Note 2. | ||||||||||||||||||||||||
Fair value measurements using input type | ||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Cash and cash equivalents | $ | 8,592 | $ | - | $ | - | $ | 8,592 | ||||||||||||||||
Marketable securities | 6,406 | - | - | 6,406 | ||||||||||||||||||||
Derivative liability- phantom option | - | (49 | ) | - | (49 | ) | ||||||||||||||||||
$ | 14,998 | $ | (49 | ) | $ | - | $ | 14,949 | ||||||||||||||||
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 | 12 Months Ended | ||||||||||||
Dec. 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: | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Raw materials | $ | 6,009 | $ | 3,814 | |||||||||
Work in process and finished product | 649 | 510 | |||||||||||
$ | 6,658 | $ | 4,324 | ||||||||||
PROPERTY_AND_EQUIPMENT_NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
PROPERTY AND EQUIPMENT, NET [Abstract] | |||||||||||||
PROPERTY AND EQUIPMENT, NET | NOTE 5 — PROPERTY AND EQUIPMENT, NET | ||||||||||||
Property and equipment consists of the following as of December 31, 2014 and 2013: | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Leasehold improvements | $ | 832 | $ | 838 | |||||||||
Machinery and equipment | 2,144 | 2,214 | |||||||||||
Furniture and fixtures | 250 | 250 | |||||||||||
Transportation equipment | 126 | 126 | |||||||||||
Computer equipment | 1,200 | 1,234 | |||||||||||
4,552 | 4,662 | ||||||||||||
Less accumulated depreciation | (2,604 | ) | (2,222 | ) | |||||||||
$ | 1,948 | $ | 2,440 | ||||||||||
Depreciation expenses totaled $527 and $327, for the years ended December 31, 2014 and 2013, respectively. During 2014, the Company recorded a reduction of $110 to the cost and $110 to accumulated depreciation of fully depreciated equipment no longer in use. | |||||||||||||
INTANGIBLE_ASSETS_AND_OTHERS_N
INTANGIBLE ASSETS AND OTHERS, NET | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
INTANGIBLE ASSETS AND OTHERS, NET [Abstract] | ||||||||||||||
INTANGIBLE ASSETS AND OTHERS, NET | NOTE 6 — INTANGIBLE ASSETS AND OTHERS, NET | |||||||||||||
Composition: | ||||||||||||||
Useful life years | December 31, | |||||||||||||
2014 | 2013 | |||||||||||||
Original amount: | ||||||||||||||
Technology | 5 | $2,010 | $ | 330 | ||||||||||
Customer related intangible assets | 5-Mar | 3,470 | 918 | |||||||||||
$5,480 | $ | 1,248 | ||||||||||||
Accumulated amortization: | ||||||||||||||
Technology | 5 | $350 | $ | 88 | ||||||||||
Customer related intangible assets | 5-Mar | 1,012 | 408 | |||||||||||
5 | $1,362 | $ | 496 | |||||||||||
$4,118 | $ | 752 | ||||||||||||
Prepaid lease expenses | 211 | 239 | ||||||||||||
Deferred tax assets | 87 | 85 | ||||||||||||
$4,416 | $ | 1,076 | ||||||||||||
The estimated future amortization of the intangible assets (excluded of prepaid lease and deferred tax assets and prepaid lease) as of December 31, 2014 is as follows: | ||||||||||||||
2015 | $ | 1,117 | ||||||||||||
2016 | 912 | |||||||||||||
2017 | 890 | |||||||||||||
2018 | 846 | |||||||||||||
2019 | 353 | |||||||||||||
$ | 4,118 | |||||||||||||
SHORT_TERM_BANK_LOANS
SHORT TERM BANK LOANS | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
SHORT TERM BANK LOANS [Abstract] | |||||||||||||||||||||||||||||||||
SHORT TERM BANK LOANS | NOTE 7 - SHORT TERM BANK LOANS: | ||||||||||||||||||||||||||||||||
Composition: | |||||||||||||||||||||||||||||||||
Interest rate as | Linkage basis | Total short-term liabilities | |||||||||||||||||||||||||||||||
of December 31, 2014 | |||||||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||||||
% | 2014 | 2013 | |||||||||||||||||||||||||||||||
Due to banks | Prime plus 0.7%-Prime plus 2.45% | NIS | $ | 7,851 | $ | 4,146 | |||||||||||||||||||||||||||
Less - Current portion | 1,565 | 912 | |||||||||||||||||||||||||||||||
$ | 9,416 | $ | 5,058 | ||||||||||||||||||||||||||||||
As of December 31, 2014, the Company had short term bank credit of $9,416 comprised as follows: $1,565 current portion of long term loans and $7,851 of short term bank loans that bear interest of prime plus 0.7% through prime plus 2.45% paid either on a monthly or weekly basis. | |||||||||||||||||||||||||||||||||
.As of December 31, 2013, the Company had short term bank credit of $5,058 comprised as follows: $912 current portion of long term loans and $4,146 of short term bank loans that bear interest of prime plus 0.7% paid either on a monthly or weekly bas. | |||||||||||||||||||||||||||||||||
The Company has committed to certain covenants under its bank loan. See also note 15. | |||||||||||||||||||||||||||||||||
LONG_TERM_LOANS_FROM_BANKS
LONG TERM LOANS FROM BANKS | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
LONG TERM LOANS FROM BANKS [Abstract] | ||||||||||||||||
LONG TERM LOANS FROM BANKS | NOTE 8 — LONG TERM LOANS FROM BANKS | |||||||||||||||
1. Composition: | ||||||||||||||||
Interest rate as | Linkage basis | Total long-term liabilities, | ||||||||||||||
of December 31, 2014 | net of current portion | |||||||||||||||
December 31, | ||||||||||||||||
% | 2014 | 2013 | ||||||||||||||
Due to banks | Prime plus 1.25%-Prime plus 2.45% | NIS | $ | 5,484 | $ | 4,042 | ||||||||||
Less– current portion | (1,565 | ) | (912 | ) | ||||||||||||
$ | 3,919 | $ | 3,130 | |||||||||||||
2. Long-term loans from banks are due as follows: | ||||||||||||||||
December 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Firs First year (current portion) | $ | 1,565 | $ | 912 | ||||||||||||
Second year | 1,638 | 903 | ||||||||||||||
Third year | 1,099 | 872 | ||||||||||||||
Fourth year and thereafter | 1,182 | 1,355 | ||||||||||||||
$ | 5,484 | $ | 4,042 | |||||||||||||
The Company has committed to certain covenants under its bank loan. See also note 15. |
UTA_CAPITAL_LLC_TRANSACTION
UTA CAPITAL LLC TRANSACTION | 12 Months Ended |
Dec. 31, 2014 | |
UTA CAPITAL LLC TRANSACTION [Abstract] | |
UTA CAPITAL LLC TRANSACTION | NOTE 9 — UTA CAPITAL LLC TRANSACTION |
On July 12, 2011, the Company entered into a Note and Warrant Purchase Agreement with UTA Capital LLC ("UTA"), a Delaware limited liability company (the “Purchase Agreement,” and as amended by that certain letter agreement dated as of August 16, 2011, and as further amended by that certain Second Amendment to Note and Warrant Purchase Agreement dated as of August 31, 2011 and that certain Third Amendment to Note and Warrant Purchase Agreement dated as of November 24, 2011, the “Original Agreement”) pursuant to which UTA agreed to provide financing to Micronet Enertec on a secured basis. | |
On March 8, 2013, UTA fully exercised certain warrants (the "UTA 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. Of the UTA Warrants, warrants to purchase 476,113 shares of Common Stock, issued to UTA in September 2011, were exercised for the full amount of such shares at an aggregate exercise price of $476 based on an exercise price of $1.00 per share, which exercise price was paid by reducing the $480 liability the Company owed UTA for the amendments and releases described above. The remaining UTA Warrants to purchase 300,000 shares of Common Stock, issued to UTA in September 2012, were partially exercised for 250,633 shares through a cashless exercise method. | |
In May 2013, the Company repaid certain of its debt to UTA in the total amount of $1,185. In June 2013, the Company repaid additional amounts of its debt to UTA pursuant to a certain promissory note in a total amount of $282. | |
On January 10, 2015, the Company repaid all of its remaining debt to UTA in the amount of $1,000. | |
ACCRUED_SEVERANCE_PAY_NET
ACCRUED SEVERANCE PAY, NET | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
ACCRUED SEVERANCE PAY, NET [Abstract] | |||||||||
ACCRUED SEVERANCE PAY, NET | NOTE 10 — ACCRUED SEVERANCE PAY, NET | ||||||||
A. Accrued Liability: | |||||||||
The Company is liable for severance pay to its employees pursuant to the applicable local laws prevailing in the respective countries of employment and employment agreements. For Israeli employees, the liability is partially covered by individual managers' insurance policies under the name of the employee, for which the Company makes monthly payments. The Company may make withdrawals from the managers' insurance policies only for the purpose of paying severance pay. | |||||||||
The amounts accrued and the amounts funded with managers' insurance policies are as follows: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Accrued severance pay | $ | 1,523 | $ | 1,804 | |||||
Less - amount funded | (1,494 | ) | (1,632 | ) | |||||
$ | 29 | $ | 172 | ||||||
PROVISION_FOR_INCOME_TAXES
PROVISION FOR INCOME TAXES | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
PROVISION FOR INCOME TAXES [Abstract] | |||||||||||||||
PROVISION FOR INCOME TAXES | NOTE 11 — PROVISION FOR INCOME TAXES | ||||||||||||||
A. | Basis of Taxation | ||||||||||||||
The Company's Israeli subsidiaries are governed by the tax laws of the state of Israel which had a general tax rate of 25% in 2013 and 26.5% in 2014. The Company is entitled to various tax benefits in Israel by virtue of being granted the status of an “Approved Enterprise Industrial Company” as defined by the tax regulations. The benefits include, among other things, a reduced tax rate. | |||||||||||||||
In December 2010, new legislation amending the Law for Encouragement of Capital Investments of 1959 (the “Investment Law”), was adopted. This new legislation became effective as of January 1, 2011 and applies to preferred income produced or generated by a preferred company from the effective date. Under this new legislation, a uniform corporate tax rate applies to all qualifying income of certain Industrial Companies, or Preferred Enterprise (as defined under the Investment Law), as opposed to the previous law's incentives, which were limited to income from Approved Enterprises and Privileged Enterprises during their benefits period. Under the new legislation, the uniform tax rates are as follows: 2011 and 2012 - 15% (10% in preferred area), 2013 and 2014 - 12.5% (7% in preferred area) and in 2015 and thereafter - 12% (6% in preferred area). | |||||||||||||||
Effective beginning in 2014, the regular Israeli tax rate was 26.5% for Regular Entities and 16% or 9% for Preferred Enterprises (depending on the location of industry). Both Micronet and Enertec are eligible for the tax rate for Preferred Enterprises. In 2014, Micronet was taxed at the 16% rate and Enertec was taxed at the 9% rate. | |||||||||||||||
B. | Provision for Taxes | ||||||||||||||
Year ended December 31, | |||||||||||||||
2014 | 2013 | ||||||||||||||
Current: | |||||||||||||||
Domestic | $ | - | $ | - | |||||||||||
Foreign(Israel) | 483 | 649 | |||||||||||||
483 | 649 | ||||||||||||||
Taxes related to prior years | (50 | ) | 55 | ||||||||||||
Deferred: | |||||||||||||||
Deferred taxes, net | (191 | ) | (208 | ) | |||||||||||
Total provision for income taxes | $ | 242 | $ | 496 | |||||||||||
C. | The reconciliation of income tax at the U.S. statutory rate to the Company's effective tax rate as follows: | ||||||||||||||
2014 | 2013 | ||||||||||||||
U.S. federal statutory rate | 35 | % | 35 | % | |||||||||||
Tax rate difference between U.S. and Israel | (8.5 | )% | (10 | )% | |||||||||||
Effect of Israeli tax rate benefit | (14 | )% | (5 | )% | |||||||||||
Effect of previous years | (2 | )% | 1 | % | |||||||||||
Change in valuation allowance | (19 | )% | - | % | |||||||||||
Others | (2.8 | )% | - | % | |||||||||||
Effective Tax Rate | (11.3 | )% | 21 | % | |||||||||||
D. | Deferred Tax Assets and Liabilities | ||||||||||||||
Deferred tax reflect the net tax effects of temporary differences between the carrying amounts of assets or liabilities for financial reporting purposes and the amounts used for income tax purposes. As of December 31, 2014 and 2013, the Company's deferred taxes were in respect of the following: | |||||||||||||||
December 31, | |||||||||||||||
2014 | 2013 | ||||||||||||||
Net operating loss carry forward | $ | 901 | $ | 163 | |||||||||||
Provisions for employee rights and other temporary differences | 396 | 261 | |||||||||||||
Deferred tax assets before valuation allowance | 1,297 | 424 | |||||||||||||
Valuation allowance | (901 | ) | (163 | ) | |||||||||||
Deferred tax assets | 396 | 261 | |||||||||||||
Deferred tax liability | 57 | 113 | |||||||||||||
Deferred tax assets, net | 339 | 148 | |||||||||||||
E. | Tax losses | ||||||||||||||
At December 31, 2014, the Company has a net operating loss carry forward of approximately $2,573, which may be utilized to offset future taxable income for United States federal tax purposes. This net operating loss carry forward begins to expire in 2022. Since it is more likely than not that the Company will not realize a benefit from this net operating loss carry forward a 100% valuation allowance has been recorded to reduce the deferred tax asset to its net realizable value. | |||||||||||||||
F. | Tax Assessments | ||||||||||||||
The Company received final tax assessments in the United States through tax year 2010, and with regard to the Israeli subsidiaries received final tax assessments up until tax year 2010. | |||||||||||||||
G. | Uncertain Tax Position | ||||||||||||||
The Company did not record any liability for income taxes associated with unrecognized tax benefits during 2014 and 2013 |
RELATED_PARTIES
RELATED PARTIES | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
RELATED PARTIES [Abstract] | |||||||||||||
RELATED PARTIES | NOTE 12 — RELATED PARTIES | ||||||||||||
In November 2012, entities controlled by Mr. Lucatz reached agreements with each of Micronet and the Company for the provision of management and consulting services to Micronet and the Company, respectively. | |||||||||||||
On November 7, 2012, the board of directors and the audit committee of Micronet approved the entry into a management and consulting services agreement with D.L. Capital Ltd., pursuant to which effective November 1, 2012 Mr. Lucatz agreed to devote 60% of his time to Micronet matters for the three year term of the agreement and Micronet agreed to pay the entities controlled by Mr. Lucatz management fees of 65 NIS (approximately $16) on a monthly basis, and cover other monthly expenses. Such agreement was further subject to the approval of Micronet's shareholders, which was obtained at a special meeting held on January 30, 2013 for that purpose and went into effect following its execution on February 8, 2013. | |||||||||||||
On November 26, 2012, D.L. Capital Ltd. entered into a management and consulting services agreement with the Company, effective November 1, 2012, which provides that we will pay the entities controlled by Mr. Lucatz: (i) management fees of $13 on a monthly basis, and cover other monthly expenses, (ii) an annual bonus of 3% of the amount by which the annual EBITDA for such year exceeds the average annual EBITDA for 2011 and 2010, and (iii) a one-time bonus of 0.5% of the purchase price of any acquisition or capital raising transaction, excluding the public offering contemplated at such time, completed by us during the term of the agreement. | |||||||||||||
Transactions with related parties | |||||||||||||
Year ended | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Consulting fee paid to controlling shareholder | $ | 573 | $ | 403 | |||||||||
Stock based compensation granted to controlling shareholder | 124 | - | |||||||||||
Total | $ | 697 | $ | 403 | |||||||||
SHAREHOLDERS_EQUITY
SHAREHOLDER'S EQUITY | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
SHAREHOLDER'S EQUITY [Abstract] | |||||||||||||||||||||||||
SHAREHOLDER'S EQUITY | NOTE 13 — SHAREHOLDER'S EQUITY | ||||||||||||||||||||||||
A. | Common stock: | ||||||||||||||||||||||||
Common Stock confers upon their holders the rights to receive notice to participate and vote in general meetings of the Company, and the right to receive dividends if declared. | |||||||||||||||||||||||||
B. | Stock Option Plan: | ||||||||||||||||||||||||
Pursuant to our 2012 Stock Incentive Plan as amended and approved at the Company's Annual Meeting of Shareholders in September 2014, our board of directors is authorized to award stock options to purchase shares of common stock to our officers, directors, employees and certain others, up to a total of 750,000 shares of common stock, subject to adjustments in the event of a stock split, stock dividend, recapitalization or similar capital change. Stock based compensation amounted to $308 and $19 for the years ended December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||
The exercise price of the options granted under the 2012 Stock Incentive Plan is set by the board of directors and will not be less than the closing sale price on NASDAQ at the grant date. As of December 31, 2014, 144,000 stock options remain available for future awards under the 2012 Stock Incentive Plan. Under the 2012 Stock Incentive Plan, unless determined otherwise by the board, options generally vest over a two or three year period from the date of grant and expire 10 years after the grant date. Unvested options are forfeited 90 days following the termination of employment. Any options that are forfeited before expiration become available for future grants. | |||||||||||||||||||||||||
On July 17, 2014 the Company adopted the 2014 Stock Incentive Plan pursuant to which the board of directors is authorized to issue stock options, restricted stock and other awards to officers, directors, employees, consultants and other service providers. The board of directors has reserved 100,000 shares of the Company's common stock for issuance pursuant to awards that may be made pursuant to the 2014 Stock Incentive Plan. The 2014 Stock Incentive Plan was approved by the stockholders on September 30, 2014. | |||||||||||||||||||||||||
: | |||||||||||||||||||||||||
The following table summarizes information about stock options outstanding and exercisable as of December 31, 2014: | |||||||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||||||
Number Outstanding on December 31, 2014 | Weighted Average Remaining Contractual Life | Number Exercisable on December 31, 2014 | Exercise | ||||||||||||||||||||||
Price | |||||||||||||||||||||||||
Years | $ | ||||||||||||||||||||||||
20,000 | 8.5 | 6,667 | 4.3 | ||||||||||||||||||||||
586,000 | 9.91 | 188,667 | 4.3 | ||||||||||||||||||||||
606,000 | 195,334 | ||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Number of | Weighted Average Exercise Price | Number of | Weighted Average Exercise Price | ||||||||||||||||||||||
Options | Options | ||||||||||||||||||||||||
$ | $ | ||||||||||||||||||||||||
Options outstanding at the beginning of year | 20,000 | 4.3 | - | - | |||||||||||||||||||||
Changes during the year: | |||||||||||||||||||||||||
Granted | 586,000 | 4.3 | 20,000 | 4.3 | |||||||||||||||||||||
Exercised | - | - | |||||||||||||||||||||||
Forfeited | - | - | - | - | |||||||||||||||||||||
Options outstanding at end of year | 606,000 | 20,000 | |||||||||||||||||||||||
Options exercisable at year-end | 195,334 | - | |||||||||||||||||||||||
Weighted-average fair value of options granted during the year | $ | 1.36 | $ | 3.78 | |||||||||||||||||||||
The fair value of each option granted is estimated on the date of grant, using the Black-Scholes option-pricing model with the following weighted average assumptions: dividend yield of 0% for all years; expected volatility: 2014 – 40% and 2013 –46%; risk-free interest rate: 2014 – 2% and 2013 – 3.2%; and expected life: 2014 and 2013 – 6.5 years. | |||||||||||||||||||||||||
The Company is required to assume a dividend yield as an input in the Black-Scholes model. The dividend yield assumption is based on the Company's historical experience and expectation of future dividends payouts and may be subject to change in the future. | |||||||||||||||||||||||||
The Company uses historical volatility in accordance with FASB ASC Topic 718, “Compensation - stock compensation”. The computation of volatility uses historical volatility derived from the Company's exchange-traded shares. | |||||||||||||||||||||||||
The risk-free interest assumption is the implied yield currently available on U.S. Treasury zero-coupon bonds, issued with a remaining term equal to the expected life term of the Company's options. | |||||||||||||||||||||||||
Pre-vesting rates forfeitures were zero based on pre-vesting for feature experience. | |||||||||||||||||||||||||
The Company uses the simplified method to compute the expected option term for options granted. | |||||||||||||||||||||||||
C. | Issuance of common stock: | ||||||||||||||||||||||||
In November 2014, the Company issued 25,000 restricted shares to a service provider under the 2014 Stock Incentive Plan. An expense of $94 was recorded at the grant date based on the market price of the issued shares on the grant date. |
SEGMENT_REPORTING
SEGMENT REPORTING | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
SEGMENT REPORTING [Abstract] | ||||||||||||||
SEGMENT REPORTING | NOTE 14 — SEGMENT REPORTING | |||||||||||||
The Company accounts for its segment information in accordance with the provisions of ASC 280-10, “Segment Reporting” ("ASC 280-10"). ASC 280-10 establishes annual and interim reporting standards for operating segments of a company. ASC 280-10 requires disclosures of selected segment-related financial information about products, major customers, and geographic areas based on the Company's internal accounting methods. | ||||||||||||||
Operating segments are based upon our internal organization structure, the manner in which our operations are managed and the availability of separate financial information. We have two operating segments: defense and aerospace segment conducted by Enertec and MRM conducted by Micronet. | ||||||||||||||
Summarized financial information by segment for the years ended December 31, 2014, based on the Company's internal financial reporting system utilized by the Company's chief operating decision makers, follows: | ||||||||||||||
Defense and aerospace | Consolidated | |||||||||||||
Mobile resource management | ||||||||||||||
Revenues from external customers | $ | 11,583 | $ | 22,655 | $ | 34,238 | ||||||||
Segment operating income (loss) | 671 | (1) | (1,000 | ) | (329 | ) | ||||||||
Not allocated expenses | 1,507 | |||||||||||||
Finance expenses | (296 | ) | ||||||||||||
Consolidated loss before provision for income taxes | $ | (2,132 | ) | |||||||||||
-1 | ||||||||||||||
Includes $850 of intangible assets amortization, derived from Micronet and Micronet Inc acquisitions. | ||||||||||||||
Summarized financial information by segment for the years ended December 31, 2014 and 2013: | ||||||||||||||
Revenue from the Company's major customers representing 10% or more of total revenue for the years ended December 31, 2014 and 2013 were as follows: | ||||||||||||||
Year ended December 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
Customer A | 28 | % | 23 | % | ||||||||||
Customer B | 19 | % | 56 | % | ||||||||||
Summarized financial information by segment for the years ended December 31, 2014 and 2013: | ||||||||||||||
Revenue from customers in the geographic regions based on the location of customers' headquarters is as follows: | ||||||||||||||
Year ended December 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
United States | $ | 19,203 | $ | 21,275 | ||||||||||
Israel | 11,824 | 11,652 | ||||||||||||
Other | 3,211 | 2,644 | ||||||||||||
Total | $ | 34,238 | $ | 35,571 | ||||||||||
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
COMMITMENTS AND CONTINGENCIES [Abstract] | |||||
COMMITMENTS AND CONTINGENCIES | NOTE 15 — COMMITMENTS AND CONTINGENCIES | ||||
Lease commitments- | |||||
Micronet's lease expired in June 2013, and was extended for two additional years until June 2015. Accrual rent fee is approximately $144 per year including property management fee. Micronet Inc's lease expired in May 2016 and accrual rent fee is approximately $118 per year. Enertec's properties consist of leased combined office and manufacturing facilities used for sales, support, research and development, manufacturing, and our headquarters (management and administrative personnel) and are located in Karmiel, Israel. Annual rent is approximately $241 per year. The lease term expires in June 2021, subject to two five-year extension options and early termination provision after five years, which we hold. | |||||
At December 31, 2014, total minimum cars and lease rentals under non-cancelable operating leases with an initial or remaining lease term of one year or more are as follows: | |||||
Year Ending December 31, | Amount | ||||
2015 | $ | 808 | |||
2016 | 515 | ||||
2017 | 341 | ||||
2018 | $ | 238 | |||
Legal proceedings | |||||
We are not subject to any pending or threatened legal proceedings, nor is our property the subject of a pending or threatened legal proceeding. None of our directors, officers or affiliates is involved in a proceeding adverse to our business or has a material interest adverse to our business. | |||||
Covenants | |||||
| Enertec Systems has committed to certain covenants under its bank loan, including, among other things that (i) its shareholder's equity according to its financial statements will not fall below 17,000 NIS, and (ii) its shareholder's equity will not be lower than 30% of the total liabilities on its balance sheet. Enertec Systems has met all of its bank covenants as of December 31, 2014. | ||||
| Enertec Electronics has covenants under its bank loan mainly in respect of separate financial statements equity of not less than 32.5% of total assets. Enertec Electronics has met all of its bank covenants as of December 31, 2014. | ||||
| In addition, Micronet has undertaken under its bank loan documents the following financial covenants: (i) a cash balance of not less than 15,000 NIS; (ii) a minimum equity of 30,000 NIS and (iii) total solvency ratio of not less than 30%. Micronet has met all of its bank covenants as of December 31, 2014 | ||||
Chief Scientist | |||||
In April 2013, Micronet submitted to the OCS a request for financial support within a framework of a research and development program for a new product. In September 2013, a grant to Micronet in a total amount of 5,500 NIS (approximately $1,500) was approved by the OCS. This grant was provided by the OCS for a period of one year (starting April 2013) at a level of 30% from the aforementioned amount. In addition, during 2014 Micronet received further confirmation for a grant from the OCS in the total amount of 5,500 NIS (approximately $ 1,500). This grant was provided by the OCS for a period of one year (starting April 2014) at a level of 40% from the aforementioned amount. Micronet is obligated to pay royalties to the OCS, amounting to 3%-3.5% from the sales of the products and other related revenues generated from such projects linked to the dollar plus Libor interest rate. To date, Micronet has received an aggregate of 3,500 NIS (approximately $994) from the OCS under these two grants. |
SUPPLEMENTARY_FINANCIAL_STATEM
SUPPLEMENTARY FINANCIAL STATEMENTS INFORMATION | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
SUPPLEMENTARY FINANCIAL STATEMENTS INFORMATION [Abstract] | |||||||||||||||||||||
SUPPLEMENTARY FINANCIAL STATEMENTS INFORMATION | NOTE 16 — SUPPLEMENTARY FINANCIAL STATEMENTS INFORMATION | ||||||||||||||||||||
A. Other accounts receivable: | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Prepaid expenses | $ | 186 | $ | 211 | |||||||||||||||||
Government departments and agencies | 280 | 322 | |||||||||||||||||||
Deferred taxes | 309 | 176 | |||||||||||||||||||
Others | 474 | 456 | |||||||||||||||||||
$ | 1,249 | $ | 1,165 | ||||||||||||||||||
B. Other Accounts Payable: | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Employees and wage-related liabilities | $ | 1,267 | $ | 1,305 | |||||||||||||||||
Government departments and agencies | 385 | 496 | |||||||||||||||||||
Accrued expenses | 556 | 1,266 | |||||||||||||||||||
Other current liabilities | 411 | 288 | |||||||||||||||||||
$ | 2,619 | $ | 3,355 | ||||||||||||||||||
C. Earnings per Share: | |||||||||||||||||||||
Basic and diluted earnings per share were computed based on the average number of shares outstanding during each year. | |||||||||||||||||||||
The following table sets forth the computation of basic and diluted net earnings per share attributable to Micronet Enertec: | |||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Numerator: | |||||||||||||||||||||
Amount for basic earnings per share | $ | (2,139 | ) | $ | (495 | ) | |||||||||||||||
Effect of dilutive instruments | - | - | |||||||||||||||||||
Amount for diluted earnings per share | (2,139 | ) | (495 | ) | |||||||||||||||||
Denominator: | |||||||||||||||||||||
Denominator for basic earnings per share - weighted average of shares | 5,834,371 | 5,089,122 | |||||||||||||||||||
Effect of dilutive instruments | - | - | |||||||||||||||||||
Denominator for diluted net earnings per share - weighted average shares and assuming dilution | 5,834,371 | 5,089,122 | |||||||||||||||||||
Basic earnings per share attributed to Micronet Enertec stockholders | $ | (0.37 | ) | $ | (0.097 | ) | |||||||||||||||
Diluted earnings per share attributed to Micronet Enertec stockholders | $ | (0.37 | ) | $ | (0.097 | ) | |||||||||||||||
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2014 | |
SUBSEQUENT EVENTS [Abstract] | |
SUBSEQUENT EVENTS | NOTE 17 –SUBSEQUENT EVENTS |
On January 10, 2015 the Company repaid its debt to UTA, for a total amount of $1,000. | |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policy) | 12 Months Ended | ||
Dec. 31, 2014 | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |||
Basis of Presentation | Basis of Presentation | ||
The accompanying consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). | |||
The consolidated financial statements include the financial statements of the Company and its wholly owned subsidiaries. All significant inter-company transactions and balances among the Company and its subsidiaries are eliminated upon consolidation. | |||
Functional Currency | Functional Currency | ||
The functional currency of Micronet Enertec is the U.S. dollar. The functional currency of certain subsidiaries is their local currency. The financial statements of those companies are included in consolidation, based on translation into U.S. dollars. Assets and liabilities are translated at year-end exchange rates, while revenues and expenses are translated at monthly average exchange rates during the year. Differences resulting from translation are presented in the consolidated statements of comprehensive income. | |||
Use of Estimate | Use of Estimate | ||
The preparation of the 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 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 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 is ceased. Intercompany transactions and balances are eliminated upon consolidation. | |||
Cash and Cash Equivalents | Cash and Cash Equivalents | ||
Cash equivalents are considered by the Company to be highly-liquid investments, including inter-alia, short-term deposits with banks, of which do not exceed maturities of three months at the time of deposit and which are not restricted. | |||
Investments in Marketable Securities | Investments in Marketable Securities | ||
Management determines the appropriate classification of its investments at the time of purchase and reevaluates such determinations at each balance sheet date. Investments in marketable securities are classified as “trading,” and unrealized gains or losses are reported in the statement of operations. | |||
Revenue Recognition | Revenue Recognition | ||
The Company's subsidiary Enertec enters into long-term fixed-price contracts with customers to manufacture test systems, simulators, and airborne applications. Revenues on these long-term fixed-price contracts are recognized under the percentage-of-completion method. In using the percentage of completion method, revenues are generally recorded based on the percentage of cost incurred to date on a contract relative to the estimated total expected contract cost. Management uses historical experience, project plans and an assessment of the risks and uncertainties inherent in the arrangement to establish the total estimated costs. The percentage of completion is established by the costs incurred to date as a percentage of the estimated total costs of each contract (cost-to-cost method). Contract costs include all direct material and labor costs. The Company recognizes revenues on a project when persuasive evidence of an arrangement exists, recoverability is probable, and project costs are incurred. The Company recognizes contract losses, if any, in the period in which they first became evident. As of December 31, 2014 approximately $ 3,800 (on December 31, 2013: $4,300) of the accounts receivable balance was unbilled due to the customer's payment terms. | |||
Revenues from the sales of MRM products are recognized when persuasive evidence of an arrangement exists; delivery has occurred, fee to its customer is fixed and determinable; and collection of the resulting receivable is reasonably assured. The title and risk of loss passes to the customer, delivery is occurred and acceptance is satisfied as the product leaves the Company premises. | |||
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts | ||
The Company establishes an allowance for doubtful accounts to ensure trade and financing receivables are not overstated due to uncollectability. The allowance for doubtful accounts was based on specific receivables, which their collection, in the opinion of Company's management, is in doubt. Trade receivables are charged off in the period in which they are deemed to be uncollectible. As of December 31, 2014 and 2013, the allowance for doubtful accounts amounted to $1,289 and $324, respectively. | |||
Inventories | Inventories | ||
Inventories of raw materials are stated at the lower of cost (first-in, first-out basis) or realizable value. Cost of work in process comprise direct materials, direct production costs and an allocation of production overheads based on normal operating capacity. | |||
Property and Equipment | Property and Equipment | ||
Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated by the straight-line method over their estimated useful lives. Annual rates of depreciation are as follows: | |||
Leasehold improvements | Over the shorter of the lease term or the life of the assets | ||
Machinery and equipment | 10 years | ||
Furniture and fixtures | 14 years | ||
Transportation equipment | 7 years | ||
Computer equipment | 3 years | ||
Stock Based Compensation | Stock Based Compensation | ||
The Company account for stock based compensation under the fair market value method under which compensation cost is measured at the grant date based on the value of the award and is recognized over the service period, which is usually the vesting period. For stock options, fair value is determined using an option-pricing model that takes into account the stock price at the grant date, the exercise price, the expected life of the option, the volatility of the underlying stock, the expected dividends on it, and the risk-free interest rate over the expected life of the option. | |||
Shipping and Handling Costs | Shipping and Handling Costs- | ||
Shipping and handling costs are included in cost of revenues and amounted to $263 and $295 for the years ended December 31, 2014 and 2013, respectively. | |||
Research and Development Costs | Research and Development Costs | ||
Research and development costs are charged to statements of income as incurred net of grants from the Israel Office of the Chief Scientist of the Ministry of Economy (“OCS”). | |||
Advertising Costs | Advertising Costs- | ||
The Company expenses advertising costs as incurred. Advertising costs for the years ended December 31, 2014 and 2013 were $32 and $23 respectively. | |||
Earnings (loss) per Share | Earnings (loss) per Share | ||
Basic net earnings per share is computed based on the weighted average number of ordinary shares outstanding during each year. Diluted earnings per share is computed based on the weighted average number of ordinary shares outstanding during each year, plus dilutive potential ordinary shares considered outstanding during the year derived from potential exercise of warrants and stock options. | |||
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets | ||
The Company evaluates property and equipment and purchased intangible assets with finite lives for impairment whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable. The Company assesses the recoverability of the assets based on the undiscounted future cash flow and recognizes an impairment loss when the estimated undiscounted future cash flow expected to result from the use of the asset plus the net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. When the Company identifies an impairment, it reduces the carrying amount of the asset to its estimated fair value based on a discounted cash flow approach or, when available and appropriate, to comparable market values. During the years ending December 31, 2014, and 2013 no indicators of impairment have been identified. | |||
Intangible assets | Intangible assets | ||
Intangible assets that are not considered to have an indefinite useful life are amortized using the straight-line basis over their estimated useful lives. The carrying amount of these assets is reviewed whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Recoverability of these assets is measured by comparison of the carrying amount of the asset to the future undiscounted cash flows the assets are expected to generate. If the asset is considered to be impaired, the amount of any impairment is measured as the difference between the carrying value and the fair value of the impaired asset. | |||
Goodwill | Goodwill | ||
Goodwill represents the excess of the purchase price in a business combination over the fair value of net tangible and intangible assets acquired. Goodwill is not amortized, but rather is subject to an annual impairment test. The Company has two operating segments: Mobile Resource Management and Defense and Aerospace. The goodwill impairment tests are conducted in two steps. In the first step, the Company determines the fair value of the reporting unit. If the net book value of the reporting unit exceeds its fair value, the Company would then perform the second step of the impairment test which requires allocation of the reporting unit's fair value of all of its assets and liabilities in a manner similar to an acquisition cost allocation, with any residual fair value being allocated to goodwill. The implied fair value of the goodwill is then compared to the carrying value to determine impairment, if any. As of December 31, 2014, the Company had a carrying amount of $1,466 from Micronet acquisition of the Vehicle Business. | |||
Comprehensive Income | Comprehensive Income | ||
Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 220-10, “Reporting Comprehensive Income,” requires the Company to report in its consolidated financial statements, in addition to its net income, comprehensive income (loss), which includes all changes in equity during a period from non-owner sources including, as applicable, foreign currency items, and other items. | |||
The Company's other comprehensive income for all periods presented is related to the effect of foreign translation losses. | |||
Income Taxes | Income Taxes | ||
Deferred taxes are determined utilizing the “asset and liability” method, whereby deferred tax asset and liability account balances are determined based on differences between financial reporting and the tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance, when it's more likely than not that deferred tax assets will not be realized in the foreseeable future. Deferred tax liabilities and assets are classified as current or non-current based on the expected reversal dates of the specific temporary differences. | |||
The Company applied FASB ASC Topic 740-10-05, “Income Taxes” which provides guidance for recognizing and measuring uncertain tax positions and prescribes a threshold condition that a tax position must meet for any of the benefits of the uncertain tax position to be recognized in the financial statements. It also provides accounting guidance on derecognizing, classification and disclosure of these uncertain tax positions. The Company's policy on classification of all interest and penalties related to unrecognized income tax positions, if any, is to present them as a component of income tax expense. | |||
Financial Instruments | Financial Instruments | ||
1 | Concentration of credit risks: Financial instruments that have the potential to expose the Company to credit risks are mainly cash and cash equivalents, bank deposit accounts, marketable securities and trade receivables. The Company holds cash and cash equivalents, securities and deposit accounts at large banks in Israel, thereby substantially reducing the risk of loss. With respect to trade receivables, the risk is limited due to the geographically spreading, nature and size of the entities that constitute the Company's customer base. The Company assesses the financial position of its customers prior to the engagement with them. The Company performs ongoing credit evaluations of its customers for the purpose of determining the appropriate allowance for doubtful accounts and generally does not require collateral. An appropriate allowance for doubtful accounts is included in the accounts. | ||
2 | Fair value measurement: The Company measures fair value and discloses fair value measurements for financial and non-financial assets and liabilities. Fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The accounting standard establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described below: | ||
Level 1: | Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. | ||
Level 2: | Observable prices that are based on inputs not quoted on active markets, but corroborated by market data. | ||
Level 3: | Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. | ||
In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible and considers counterparty credit risk in its assessment of fair value. | |||
Recent Accounting Pronouncements | Recent Accounting Pronouncements | ||
In July 2013, the FASB issued ASU No. 2013-11, “Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carry Forward, a Similar Tax Loss, or a Tax Credit Carry Forward Exists”, or ASU 2013-11. ASU 2013-11 eliminates diversity in practice regarding the presentation of an unrecognized tax benefit when a net operating loss carry forward or a tax credit carry forward exists. The adoption of ASU 2013-11 did not have a material impact on the Company's financial statements. | |||
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. The Company does not expect material impacts on its consolidated financial statements upon adoption. | |||
In May 2014, the FASB issued guidance on revenue from contracts with customers that will supersede the most current revenue recognition guidance, including industry-specific guidance. The underlying principle of the guidance is that an entity should recognize revenue upon the transfer of goods or services to customers in an amount that the entity expects to be entitled to in exchange for those goods or services. The guidance provides a five-step analysis of transactions to determine when and how revenue is recognized. Other major provisions include capitalization of certain contract costs, consideration of the time value of money in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. The guidance also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity's contracts with customers. The guidance is effective for annual periods beginning on or after December 15, 2016 (early adoption is not permitted). The guidance permits the use of either a retrospective or cumulative effect transition method. The Company is currently evaluating the impact of the amended guidance on its consolidated financial statements. | |||
In August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial statements – Going concern (subtopic 205-40), Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern” (“ASU 2014-15”). The new standard provides guidance on management's responsibility in evaluating whether there is substantial doubt about a company's ability to continue as a going concern and about related footnote disclosures. For each reporting period, management will be required to evaluate whether there are conditions or events that raise substantial doubt about a company's ability to continue as a going concern within one year from the date the financial statements are issued. ASU 2014-15 applies prospectively to annual periods ending after December 15, 2016, and to annual periods thereafter. Early application is permitted. The Company does not expect material impacts on its consolidated financial statements upon adoption. |
DESCRIPTION_OF_BUSINESS_Tables
DESCRIPTION OF BUSINESS (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
DESCRIPTION OF BUSINESS [Abstract] | ||||||||||
Schedule of Assets Acquired and Liabilities Assumed | ||||||||||
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 Financial Information | ||||||||||
Year Ended December 31, | Year Ended December 31, | |||||||||
2014 | 2013 | |||||||||
Total revenues | $ | 38,626 | $ | 46,303 | ||||||
Net loss attribute to Micronet Enertec | $ | (2,189 | ) | $ | (641 | ) | ||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | ||
Dec. 31, 2014 | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |||
Schedule of Depreciation Rates | |||
Leasehold improvements | Over the shorter of the lease term or the life of the assets | ||
Machinery and equipment | 10 years | ||
Furniture and fixtures | 14 years | ||
Transportation equipment | 7 years | ||
Computer equipment | 3 years | ||
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS [Abstract] | ||||||||||||||||||||||||
Schedule of Fair Value Measurements | Fair value measurements using input type | |||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Cash and cash equivalents | $ | 8,592 | $ | - | $ | - | $ | 8,592 | ||||||||||||||||
Marketable securities | 6,406 | - | - | 6,406 | ||||||||||||||||||||
Derivative liability- phantom option | - | (49 | ) | - | (49 | ) | ||||||||||||||||||
$ | 14,998 | $ | (49 | ) | $ | - | $ | 14,949 | ||||||||||||||||
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) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
INVENTORIES [Abstract] | |||||||||||||
Schedule of Inventories | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Raw materials | $ | 6,009 | $ | 3,814 | |||||||||
Work in process and finished product | 649 | 510 | |||||||||||
$ | 6,658 | $ | 4,324 | ||||||||||
PROPERTY_AND_EQUIPMENT_NET_Tab
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
PROPERTY AND EQUIPMENT, NET [Abstract] | |||||||||||||
Schedule of Property and Equipment | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Leasehold improvements | $ | 832 | $ | 838 | |||||||||
Machinery and equipment | 2,144 | 2,214 | |||||||||||
Furniture and fixtures | 250 | 250 | |||||||||||
Transportation equipment | 126 | 126 | |||||||||||
Computer equipment | 1,200 | 1,234 | |||||||||||
4,552 | 4,662 | ||||||||||||
Less accumulated depreciation | (2,604 | ) | (2,222 | ) | |||||||||
$ | 1,948 | $ | 2,440 | ||||||||||
INTANGIBLE_ASSETS_AND_OTHERS_N1
INTANGIBLE ASSETS AND OTHERS, NET (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
INTANGIBLE ASSETS AND OTHERS, NET [Abstract] | ||||||||||||||
Schedule of Intangible Assets | Composition: | |||||||||||||
Useful life years | December 31, | |||||||||||||
2014 | 2013 | |||||||||||||
Original amount: | ||||||||||||||
Technology | 5 | $2,010 | $ | 330 | ||||||||||
Customer related intangible assets | 5-Mar | 3,470 | 918 | |||||||||||
$5,480 | $ | 1,248 | ||||||||||||
Accumulated amortization: | ||||||||||||||
Technology | 5 | $350 | $ | 88 | ||||||||||
Customer related intangible assets | 5-Mar | 1,012 | 408 | |||||||||||
5 | $1,362 | $ | 496 | |||||||||||
$4,118 | $ | 752 | ||||||||||||
Prepaid lease expenses | 211 | 239 | ||||||||||||
Deferred tax assets | 87 | 85 | ||||||||||||
$4,416 | $ | 1,076 | ||||||||||||
Schedule of Estimated Future Amortization | ||||||||||||||
2015 | $ | 1,117 | ||||||||||||
2016 | 912 | |||||||||||||
2017 | 890 | |||||||||||||
2018 | 846 | |||||||||||||
2019 | 353 | |||||||||||||
$ | 4,118 | |||||||||||||
SHORT_TERM_BANK_LOANS_Tables
SHORT TERM BANK LOANS (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
SHORT TERM BANK LOANS [Abstract] | |||||||||||||||||||||||||||||||||
Schedule of Short Term Debt | |||||||||||||||||||||||||||||||||
Interest rate as | Linkage basis | Total short-term liabilities | |||||||||||||||||||||||||||||||
of December 31, 2014 | |||||||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||||||
% | 2014 | 2013 | |||||||||||||||||||||||||||||||
Due to banks | Prime plus 0.7%-Prime plus 2.45% | NIS | $ | 7,851 | $ | 4,146 | |||||||||||||||||||||||||||
Less - Current portion | 1,565 | 912 | |||||||||||||||||||||||||||||||
$ | 9,416 | $ | 5,058 | ||||||||||||||||||||||||||||||
LONG_TERM_LOANS_FROM_BANKS_Tab
LONG TERM LOANS FROM BANKS (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
LONG TERM LOANS FROM BANKS [Abstract] | ||||||||||||||||
Schedule of Composition | ||||||||||||||||
Interest rate as | Linkage basis | Total long-term liabilities, | ||||||||||||||
of December 31, 2014 | net of current portion | |||||||||||||||
December 31, | ||||||||||||||||
% | 2014 | 2013 | ||||||||||||||
Due to banks | Prime plus 1.25%-Prime plus 2.45% | NIS | $ | 5,484 | $ | 4,042 | ||||||||||
Less– current portion | (1,565 | ) | (912 | ) | ||||||||||||
$ | 3,919 | $ | 3,130 | |||||||||||||
Schedule of Long-term Loans from Banks Maturities | ||||||||||||||||
December 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Firs First year (current portion) | $ | 1,565 | $ | 912 | ||||||||||||
Second year | 1,638 | 903 | ||||||||||||||
Third year | 1,099 | 872 | ||||||||||||||
Fourth year and thereafter | 1,182 | 1,355 | ||||||||||||||
$ | 5,484 | $ | 4,042 | |||||||||||||
ACCRUED_SEVERANCE_PAY_NET_Tabl
ACCRUED SEVERANCE PAY, NET (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
ACCRUED SEVERANCE PAY, NET [Abstract] | |||||||||
Schedule of Accrued Amounts | December 31, | ||||||||
2014 | 2013 | ||||||||
Accrued severance pay | $ | 1,523 | $ | 1,804 | |||||
Less - amount funded | (1,494 | ) | (1,632 | ) | |||||
$ | 29 | $ | 172 | ||||||
PROVISION_FOR_INCOME_TAXES_Tab
PROVISION FOR INCOME TAXES (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
PROVISION FOR INCOME TAXES [Abstract] | |||||||||||||||
Schedule of Provision (Benefit) for Taxes | Year ended December 31, | ||||||||||||||
2014 | 2013 | ||||||||||||||
Current: | |||||||||||||||
Domestic | $ | - | $ | - | |||||||||||
Foreign(Israel) | 483 | 649 | |||||||||||||
483 | 649 | ||||||||||||||
Taxes related to prior years | (50 | ) | 55 | ||||||||||||
Deferred: | |||||||||||||||
Deferred taxes, net | (191 | ) | (208 | ) | |||||||||||
Total provision for income taxes | $ | 242 | $ | 496 | |||||||||||
Schedule of Reconciliation of Income Taxes | 2014 | 2013 | |||||||||||||
U.S. federal statutory rate | 35 | % | 35 | % | |||||||||||
Tax rate difference between U.S. and Israel | (8.5 | )% | (10 | )% | |||||||||||
Effect of Israeli tax rate benefit | (14 | )% | (5 | )% | |||||||||||
Effect of previous years | (2 | )% | 1 | % | |||||||||||
Change in valuation allowance | (19 | )% | - | % | |||||||||||
Others | (2.8 | )% | - | % | |||||||||||
Effective Tax Rate | (11.3 | )% | 21 | % | |||||||||||
Schedule of Deferred Tax Assets and Liabilities | December 31, | ||||||||||||||
2014 | 2013 | ||||||||||||||
Net operating loss carry forward | $ | 901 | $ | 163 | |||||||||||
Provisions for employee rights and other temporary differences | 396 | 261 | |||||||||||||
Deferred tax assets before valuation allowance | 1,297 | 424 | |||||||||||||
Valuation allowance | (901 | ) | (163 | ) | |||||||||||
Deferred tax assets | 396 | 261 | |||||||||||||
Deferred tax liability | 57 | 113 | |||||||||||||
Deferred tax assets, net | 339 | 148 | |||||||||||||
RELATED_PARTIES_Tables
RELATED PARTIES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
RELATED PARTIES [Abstract] | |||||||||||||
Schedule of Transactions with Related Parties | Year ended | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Consulting fee paid to controlling shareholder | $ | 573 | $ | 403 | |||||||||
Stock based compensation granted to controlling shareholder | 124 | - | |||||||||||
Total | $ | 697 | $ | 403 |
SHAREHOLDERS_EQUITY_Tables
SHAREHOLDER'S EQUITY (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
SHAREHOLDER'S EQUITY [Abstract] | |||||||||||||||||||||||||
Schedule of Information by Exercise Price | Options Outstanding | Options Exercisable | |||||||||||||||||||||||
Number Outstanding on December 31, 2014 | Weighted Average Remaining Contractual Life | Number Exercisable on December 31, 2014 | Exercise | ||||||||||||||||||||||
Price | |||||||||||||||||||||||||
Years | $ | ||||||||||||||||||||||||
20,000 | 8.5 | 6,667 | 4.3 | ||||||||||||||||||||||
586,000 | 9.91 | 188,667 | 4.3 | ||||||||||||||||||||||
606,000 | 195,334 | ||||||||||||||||||||||||
Schedule of Stock Option Activity | 2014 | 2013 | |||||||||||||||||||||||
Number of | Weighted Average Exercise Price | Number of | Weighted Average Exercise Price | ||||||||||||||||||||||
Options | Options | ||||||||||||||||||||||||
$ | $ | ||||||||||||||||||||||||
Options outstanding at the beginning of year | 20,000 | 4.3 | - | - | |||||||||||||||||||||
Changes during the year: | |||||||||||||||||||||||||
Granted | 586,000 | 4.3 | 20,000 | 4.3 | |||||||||||||||||||||
Exercised | - | - | |||||||||||||||||||||||
Forfeited | - | - | - | - | |||||||||||||||||||||
Options outstanding at end of year | 606,000 | 20,000 | |||||||||||||||||||||||
Options exercisable at year-end | 195,334 | - | |||||||||||||||||||||||
Weighted-average fair value of options granted during the year | $ | 1.36 | $ | 3.78 |
SEGMENT_REPORTING_Tables
SEGMENT REPORTING (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
SEGMENT REPORTING [Abstract] | ||||||||||||||
Schedule of Segment Reporting | ||||||||||||||
Defense and aerospace | Consolidated | |||||||||||||
Mobile resource management | ||||||||||||||
Revenues from external customers | $ | 11,583 | $ | 22,655 | $ | 34,238 | ||||||||
Segment operating income (loss) | 671 | (1) | (1,000 | ) | (329 | ) | ||||||||
Not allocated expenses | 1,507 | |||||||||||||
Finance expenses | (296 | ) | ||||||||||||
Consolidated loss before provision for income taxes | $ | (2,132 | ) | |||||||||||
-1 | ||||||||||||||
Includes $850 of intangible assets amortization, derived from Micronet and Micronet Inc acquisitions. | ||||||||||||||
Schedule of Revenue from Major Customers | Year ended December 31, | |||||||||||||
2014 | 2013 | |||||||||||||
Customer A | 28 | % | 23 | % | ||||||||||
Customer B | 19 | % | 56 | % | ||||||||||
Schedule of Revenue by Geographic Regions | Year ended December 31, | |||||||||||||
2014 | 2013 | |||||||||||||
United States | $ | 19,203 | $ | 21,275 | ||||||||||
Israel | 11,824 | 11,652 | ||||||||||||
Other | 3,211 | 2,644 | ||||||||||||
Total | $ | 34,238 | $ | 35,571 | ||||||||||
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
COMMITMENTS AND CONTINGENCIES [Abstract] | |||||
Schedule of Future Minimum Payments | |||||
Year Ending December 31, | Amount | ||||
2015 | $ | 808 | |||
2016 | 515 | ||||
2017 | 341 | ||||
2018 | $ | 238 | |||
SUPPLEMENTARY_FINANCIAL_STATEM1
SUPPLEMENTARY FINANCIAL STATEMENTS INFORMATION (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
SUPPLEMENTARY FINANCIAL STATEMENTS INFORMATION [Abstract] | |||||||||||||||||||||
Schedule of Other Current Assets | December 31, | ||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Prepaid expenses | $ | 186 | $ | 211 | |||||||||||||||||
Government departments and agencies | 280 | 322 | |||||||||||||||||||
Deferred taxes | 309 | 176 | |||||||||||||||||||
Others | 474 | 456 | |||||||||||||||||||
$ | 1,249 | $ | 1,165 | ||||||||||||||||||
Schedule of Other Accounts Payable | December 31, | ||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Employees and wage-related liabilities | $ | 1,267 | $ | 1,305 | |||||||||||||||||
Government departments and agencies | 385 | 496 | |||||||||||||||||||
Accrued expenses | 556 | 1,266 | |||||||||||||||||||
Other current liabilities | 411 | 288 | |||||||||||||||||||
$ | 2,619 | $ | 3,355 | ||||||||||||||||||
Schedule of Earnings per Share | Year ended December 31, | ||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Numerator: | |||||||||||||||||||||
Amount for basic earnings per share | $ | (2,139 | ) | $ | (495 | ) | |||||||||||||||
Effect of dilutive instruments | - | - | |||||||||||||||||||
Amount for diluted earnings per share | (2,139 | ) | (495 | ) | |||||||||||||||||
Denominator: | |||||||||||||||||||||
Denominator for basic earnings per share - weighted average of shares | 5,834,371 | 5,089,122 | |||||||||||||||||||
Effect of dilutive instruments | - | - | |||||||||||||||||||
Denominator for diluted net earnings per share - weighted average shares and assuming dilution | 5,834,371 | 5,089,122 | |||||||||||||||||||
Basic earnings per share attributed to Micronet Enertec stockholders | $ | (0.37 | ) | $ | (0.097 | ) | |||||||||||||||
Diluted earnings per share attributed to Micronet Enertec stockholders | $ | (0.37 | ) | $ | (0.097 | ) | |||||||||||||||
DESCRIPTION_OF_BUSINESS_Narrat
DESCRIPTION OF BUSINESS (Narrative) (Details) (USD $) | 1 Months Ended | 7 Months Ended | 12 Months Ended | 1 Months Ended | |||||||
In Thousands, except Share data, unless otherwise specified | Apr. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Jul. 06, 2014 | Jun. 11, 2014 | Aug. 18, 2013 | 28-May-13 | Sep. 07, 2012 | Jun. 02, 2014 | Jun. 03, 2014 |
DESCRIPTION OF BUSINESS [Abstract] | |||||||||||
Number of subsidiaries | 2 | 2 | |||||||||
Description of Business [Line Items] | |||||||||||
Receipt of long term loans from banks | $5,571 | $1,296 | |||||||||
Contribution to consolidated revenue | 11,188 | ||||||||||
Contribution to net income | 1,413 | ||||||||||
Number of additional shares entitled to be purchased | 931,500 | ||||||||||
Number of additional shares, price per share | $6.25 | ||||||||||
Purchase price per share | $5 | ||||||||||
Shares issued, shares | 1,863,000 | ||||||||||
Offering price per warrant | $0.01 | $4.30 | $4.30 | ||||||||
Proceeds from public offering | 9,324 | ||||||||||
Issuance costs | 1,921 | ||||||||||
Maximum [Member] | |||||||||||
Description of Business [Line Items] | |||||||||||
Basis spread | 2.45% | ||||||||||
Maximum [Member] | Customer relations [Member] | |||||||||||
Description of Business [Line Items] | |||||||||||
Amortization period | 5 years | ||||||||||
Micronet Limited [Member] | |||||||||||
Description of Business [Line Items] | |||||||||||
Ownership percentage | 62.50% | 62.50% | 62.50% | 58.60% | 54.30% | 51.00% | 47.50% | ||||
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 | |||||||
Vehicle Business [Member] | |||||||||||
Description of Business [Line Items] | |||||||||||
Acquisition date | 2-Jun-14 | ||||||||||
Consideration paid with cash | 7,105 | ||||||||||
Receipt of long term loans from banks | 4,850 | ||||||||||
Goodwill | 1,466 | ||||||||||
Transaction costs | 369 | ||||||||||
Vehicle Business [Member] | Customer relations [Member] | |||||||||||
Description of Business [Line Items] | |||||||||||
Identifiable intangible assets | 2,552 | ||||||||||
Amortization period | 5 years | ||||||||||
Vehicle Business [Member] | Core technology [Member] | |||||||||||
Description of Business [Line Items] | |||||||||||
Identifiable intangible assets | 1,680 | ||||||||||
Amortization period | 5 years | ||||||||||
Vehicle Business [Member] | First Half Of Loan [Member] | |||||||||||
Description of Business [Line Items] | |||||||||||
Receipt of long term loans from banks | 2,425 | ||||||||||
Basis spread | 1.50% | ||||||||||
Interest rate | 3.75% | ||||||||||
Vehicle Business [Member] | Second Half Of Loan [Member] | |||||||||||
Description of Business [Line Items] | |||||||||||
Receipt of long term loans from banks | $2,425 | ||||||||||
Basis spread | 1.20% | ||||||||||
Interest rate | 3.45% |
DESCRIPTION_OF_BUSINESS_Schedu
DESCRIPTION OF BUSINESS (Schedule of Assets Acquired and Liabilities Assumed) (Details) (USD $) | Dec. 31, 2014 | Jun. 03, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |||
DESCRIPTION OF BUSINESS [Abstract] | |||
Inventory | $1,360 | ||
Property and equipment | 47 | ||
Identifiable intangible assets: | |||
Customer relations | 2,552 | ||
Core technology | 1,680 | ||
Goodwill | 1,466 | 1,466 | |
Total assets acquired | $7,105 |
DESCRIPTION_OF_BUSINESS_Schedu1
DESCRIPTION OF BUSINESS (Schedule of Pro Forma Financial Information) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
DESCRIPTION OF BUSINESS [Abstract] | ||
Total revenues | $38,626 | $46,303 |
Net loss attributable to Micronet Enertec | ($2,189) | ($641) |
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 03, 2014 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |||
Unbilled accounts receivables | $3,800 | $4,300 | |
Allowance for doubtful accounts | 1,289 | 324 | |
Shipping and handling costs | 263 | 295 | |
Advertising expense | 32 | 23 | |
Goodwill | $1,466 | $1,466 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Depreciation Rates) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Machinery and equipment | |
Property, Plant and Equipment [Line Items] | |
Useful life of the asset | 10 years |
Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Useful life of the asset | 14 years |
Transportation equipment | |
Property, Plant and Equipment [Line Items] | |
Useful life of the asset | 7 years |
Computer equipment | |
Property, Plant and Equipment [Line Items] | |
Useful life of the asset | 3 years |
FAIR_VALUE_MEASUREMENTS_Detail
FAIR VALUE MEASUREMENTS (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $8,592 | $12,825 |
Marketable securities | 6,406 | 6,969 |
Derivative asset- call option | ||
Derivative liability - phantom option | ||
Financial assets and liabilitied measured at fair value | 14,998 | 19,794 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | ||
Marketable securities | ||
Derivative asset- call option | 460 | |
Derivative liability - phantom option | -49 | |
Financial assets and liabilitied measured at fair value | -49 | 460 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | ||
Marketable securities | ||
Derivative asset- call option | ||
Derivative liability - phantom option | ||
Financial assets and liabilitied measured at fair value | ||
Total | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 8,592 | 12,825 |
Marketable securities | 6,406 | 6,969 |
Derivative asset- call option | 460 | |
Derivative liability - phantom option | -49 | |
Financial assets and liabilitied measured at fair value | $14,949 | $20,254 |
INVENTORIES_Details
INVENTORIES (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
INVENTORIES [Abstract] | ||
Raw materials | $6,009 | $3,814 |
Work in process and finished product | 649 | 510 |
Inventories | $6,658 | $4,324 |
PROPERTY_AND_EQUIPMENT_NET_Nar
PROPERTY AND EQUIPMENT, NET (Narrative) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
PROPERTY AND EQUIPMENT, NET [Abstract] | ||
Depreciation | $527 | $327 |
Reduction to cost | 110 | |
Reduction to accumulated depreciation | $110 |
PROPERTY_AND_EQUIPMENT_NET_Sch
PROPERTY AND EQUIPMENT, NET (Schedule of Property and Equipment) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $4,552 | $4,662 |
Less accumulated depreciation | -2,604 | -2,222 |
Property, plant and equipment, net | 1,948 | 2,440 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 832 | 838 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 2,144 | 2,214 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 250 | 250 |
Transportation Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 126 | 126 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $1,200 | $1,234 |
INTANGIBLE_ASSETS_AND_OTHERS_N2
INTANGIBLE ASSETS AND OTHERS, NET (Schedule of Intangible Assets) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Original amount | $5,480 | $1,248 |
Finite-Lived Intangible Assets, Accumulated Amortization | 1,362 | 496 |
Intangible assets, net | 4,118 | 752 |
Intangible assets, net | 4,416 | 1,076 |
Prepaid lease expenses [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 211 | 239 |
Deferred tax assets [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 87 | 85 |
Technology [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Amortization period | 5 years | |
Original amount | 2,010 | 330 |
Finite-Lived Intangible Assets, Accumulated Amortization | 350 | 88 |
Customer relations [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Original amount | 3,470 | 918 |
Finite-Lived Intangible Assets, Accumulated Amortization | $1,012 | $408 |
Customer relations [Member] | Minimum [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Amortization period | 3 years | |
Customer relations [Member] | Maximum [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Amortization period | 5 years |
INTANGIBLE_ASSETS_AND_OTHERS_N3
INTANGIBLE ASSETS AND OTHERS, NET (Schedule of Estimated Future Amortization) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
INTANGIBLE ASSETS AND OTHERS, NET [Abstract] | ||
2015 | $1,117 | |
2016 | 912 | |
2017 | 890 | |
2018 | 846 | |
2019 | 353 | |
Total | $4,118 | $752 |
SHORT_TERM_BANK_LOANS_Details
SHORT TERM BANK LOANS (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
SHORT TERM BANK LOANS [Abstract] | ||
Short-term bank loans and notes payable | 9,416 | 5,058 |
Loans payable to bank | 1,565 | 912 |
Bank loans | 7,851 | 4,146 |
Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread | 1.25% | |
Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread | 2.45% | |
Short-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread | 0.70% | |
Short-term Debt [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread | 0.70% | |
Short-term Debt [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread | 2.45% |
LONG_TERM_LOANS_FROM_BANKS_Sch
LONG TERM LOANS FROM BANKS (Schedule of Composition) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
LONG TERM LOANS FROM BANKS [Abstract] | ||
Due to banks | 5,484 | $4,042 |
Less - current portion | -1,565 | -912 |
Notes payable to bank, noncurrent | 3,919 | $3,130 |
Minimum [Member] | ||
Statement [Line Items] | ||
Basis spread | 1.25% | |
Maximum [Member] | ||
Statement [Line Items] | ||
Basis spread | 2.45% |
LONG_TERM_LOANS_FROM_BANKS_Sch1
LONG TERM LOANS FROM BANKS (Schedule of Long-term Loans From Banks Maturities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
LONG TERM LOANS FROM BANKS [Abstract] | ||
First year (current portion) | $1,565 | $912 |
Second year | 1,638 | 903 |
Third year | 1,099 | 872 |
Fourth year and thereafter | 1,182 | 1,355 |
Long-term debt | $5,484 | $4,042 |
UTA_CAPITAL_LLC_TRANSACTION_De
UTA CAPITAL LLC TRANSACTION (Details) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended | |||||||
In Thousands, except Share data, unless otherwise specified | Jan. 10, 2015 | 31-May-13 | Mar. 08, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Apr. 30, 2013 | Mar. 14, 2013 | Sep. 01, 2011 | Sep. 07, 2012 |
UTA CAPITAL LLC TRANSACTION [Line Items] | ||||||||||
Number of additional shares entitled to be purchased | 931,500 | |||||||||
Percentage of outstanding shares | 18.30% | |||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights. | $6.25 | |||||||||
Repayments of debt | $1,000 | $1,185 | ||||||||
Exercised | 726,746 | |||||||||
First Warrant [Member] | ||||||||||
UTA CAPITAL LLC TRANSACTION [Line Items] | ||||||||||
Number of additional shares entitled to be purchased | 476,113 | |||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights. | $1 | |||||||||
Derivatives liabilities- warrants | 480 | 476 | ||||||||
Second Warrant [Member] | ||||||||||
UTA CAPITAL LLC TRANSACTION [Line Items] | ||||||||||
Number of additional shares entitled to be purchased | 300,000 | |||||||||
Exercised | 250,633 | |||||||||
First Note [Member] | ||||||||||
UTA CAPITAL LLC TRANSACTION [Line Items] | ||||||||||
Repayments of debt | $282 |
ACCRUED_SEVERANCE_PAY_NET_Deta
ACCRUED SEVERANCE PAY, NET (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ACCRUED SEVERANCE PAY, NET [Abstract] | ||
Accrued severance pay | $1,523 | $1,804 |
Less - amount funded | -1,494 | -1,632 |
Accrued severance pay, net | $29 | $172 |
PROVISION_FOR_INCOME_TAXES_Nar
PROVISION FOR INCOME TAXES (Narrative) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
PROVISION FOR INCOME TAXES [Abstract] | ||
Income tax rate foreigen subsidiary | 26.50% | 25.00% |
Operating Loss Carryforwards | $2,573 | |
Operating loss carryforwards, expiration date | 31-Dec-22 | |
Valuation allowance net operating loss carry forward percentage | 100.00% |
PROVISION_FOR_INCOME_TAXES_Sch
PROVISION FOR INCOME TAXES (Schedule of Provision (Benefit) for Taxes) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Current: | ||
Domestic (Israel) | ||
Foreign | 483 | 649 |
Current income tax expense benefit | 483 | 649 |
Taxes related to prior years | -50 | 55 |
Deferred: | ||
Deferred taxes, net | -191 | -208 |
Total provision (benefit) for income taxes | $242 | $496 |
PROVISION_FOR_INCOME_TAXES_Sch1
PROVISION FOR INCOME TAXES (Schedule of Reconciliation of Income Taxes) (Details) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
PROVISION FOR INCOME TAXES [Abstract] | ||
U.S. federal statutory rate | 35.00% | 35.00% |
Tax rate difference between U.S. and Israel | -8.50% | -10.00% |
Effect of Israeli tax rate benefit | -14.00% | -5.00% |
Effect of previous years | -2.00% | 1.00% |
Change in valuation allowance | -19.00% | |
Others | -2.80% | |
Effective Tax Rate | -11.30% | 21.00% |
PROVISION_FOR_INCOME_TAXES_Sch2
PROVISION FOR INCOME TAXES (Schedule of Deferred Tax Assets and Liabilities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
PROVISION FOR INCOME TAXES [Abstract] | ||
Net operating loss carry forward | $901 | $163 |
Provisions for employee rights and other temporary differences | 396 | 261 |
Deferred tax assets before valuation allowance | 1,297 | 424 |
Valuation allowance | -901 | -163 |
Deferred tax assets | 396 | 261 |
Deferred tax liability | 57 | 113 |
Deferred tax assets, net | $339 | $148 |
RELATED_PARTIES_Narrative_Deta
RELATED PARTIES (Narrative) (Details) | 12 Months Ended | 2 Months Ended | 1 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2012 | Nov. 01, 2012 |
D L Capital Ltd | Micronet Limited [Member] | Micronet Limited [Member] | Micronet Enertec Technologies Inc. [Member] | |
USD ($) | ILS | USD ($) | ||
Related Party Transaction [Line Items] | ||||
Monthly management fees | $16 | 65 | $13 | |
Related party transaction rate | 60.00% | 60.00% | ||
Agreement term | 3 years | 3 years | ||
Monthly annual bonus percentage | 3.00% | |||
One time annual bonus percentage | 0.50% |
RELATED_PARTIES_Schedule_of_Tr
RELATED PARTIES (Schedule of Transactions with Related Parties) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
RELATED PARTIES [Abstract] | ||
Consulting fee paid to controlling shareholder | $573 | $403 |
Stock based compensation granted to controlling shareholder | 124 | |
Total | $697 | $403 |
SHAREHOLDERS_EQUITY_Narrative_
SHAREHOLDER'S EQUITY (Narrative) (Details) (USD $) | 1 Months Ended | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Nov. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule Of Compensation Related Costs Share Based Payment [Line Items] | |||
Stock based compensation | $94 | $402 | $19 |
Expected dividend yield | 0.00% | 0.00% | |
Expected volatility rate | 40.00% | 46.00% | |
Risk-free interest rate | 2.00% | 3.20% | |
Expected term | 6 years 6 months | 6 years 6 months | |
Options granted | 25,000 | 586,000 | 20,000 |
2012 Stock Incentive Plan [Member] | |||
Schedule Of Compensation Related Costs Share Based Payment [Line Items] | |||
Number of shares authorized | 750,000 | ||
Stock based compensation | $308 | $19 | |
Expiration term | 10 years | ||
Number of shares available for grant | 144,000 | ||
2012 Stock Incentive Plan [Member] | Minimum [Member] | |||
Schedule Of Compensation Related Costs Share Based Payment [Line Items] | |||
Vesting term | 2 years | ||
2012 Stock Incentive Plan [Member] | Maximum [Member] | |||
Schedule Of Compensation Related Costs Share Based Payment [Line Items] | |||
Vesting term | 3 years | ||
2014 Stock Incentive Plan [Member] | |||
Schedule Of Compensation Related Costs Share Based Payment [Line Items] | |||
Number of shares authorized | 100,000 |
SHAREHOLDERS_EQUITY_Schedule_o
SHAREHOLDER'S EQUITY (Schedule of Information by Exercise Price) (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number Outstanding on December 31, 2014 | 606,000 |
Number Exercisable on December 31, 2014 | 195,334 |
4.30 Exercise Price One [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number Outstanding on December 31, 2014 | 20,000 |
Weighted Average Remaining Contractual Life | 8 years 6 months |
Number Exercisable on December 31, 2014 | 6,667 |
Exercise Price | $4.30 |
4.30 Exercise Price Two [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number Outstanding on December 31, 2014 | 586,000 |
Weighted Average Remaining Contractual Life | 9 years 10 months 28 days |
Number Exercisable on December 31, 2014 | 188,667 |
Exercise Price | $4.30 |
SHAREHOLDERS_EQUITY_Schedule_o1
SHAREHOLDER'S EQUITY (Schedule of Stock Option Activity) (Details) (USD $) | 1 Months Ended | 12 Months Ended | |||
Nov. 30, 2014 | Apr. 30, 2013 | Mar. 08, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Number of Options | |||||
Options outstanding at the beginning of the year | 20,000 | ||||
Granted | 25,000 | 586,000 | 20,000 | ||
Exercised | 726,746 | ||||
Forfeited | |||||
Options outstanding at end of year | 606,000 | 20,000 | |||
Options exercisable at year-end | 195,334 | ||||
Weighted Average Exercise Price | |||||
Options outstanding at the beginning of the year | $4.30 | ||||
Granted | $0.01 | $4.30 | $4.30 | ||
Forfeited | |||||
Options outstanding at end of year | $4.30 | ||||
Weighted-average fair value of options granted during the year | $1.36 | $3.78 |
SEGMENT_REPORTING_Schedule_of_
SEGMENT REPORTING (Schedule of Segment Reporting) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||
Segment operating income (loss) | ($1,836) | $4,592 | |
Finance expenses | -296 | -2,293 | |
Consolidated loss before provision for income taxes | 10,058 | 13,273 | |
Amortization of intangible assets | 850 | 657 | |
Defense and aerospace | |||
Segment Reporting Information [Line Items] | |||
Revenues from external customers | 11,583 | ||
Segment operating income (loss) | 671 | ||
Mobile resource management | |||
Segment Reporting Information [Line Items] | |||
Revenues from external customers | 22,655 | ||
Segment operating income (loss) | -1,000 | [1] | |
Amortization of intangible assets | 850 | ||
Consolidated | |||
Segment Reporting Information [Line Items] | |||
Revenues from external customers | 34,238 | ||
Segment operating income (loss) | -329 | ||
Not allocated expenses | 1,507 | ||
Finance expenses | -296 | ||
Consolidated loss before provision for income taxes | ($2,132) | ||
[1] | Includes $850 of intangible assets amortization, derived from Micronet and Micronet Inc acquisitions. |
SEGMENT_REPORTING_Schedule_of_1
SEGMENT REPORTING (Schedule of Revenue from Major Customers) (Details) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Customer A | ||
Segment Reporting Information [Line Items] | ||
Risk percentage | 28.00% | 23.00% |
Customer B | ||
Segment Reporting Information [Line Items] | ||
Risk percentage | 19.00% | 56.00% |
SEGMENT_REPORTING_Schedule_of_2
SEGMENT REPORTING (Schedule of Revenue by Geographic Regions) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Segment Reporting Information [Line Items] | ||
Total | $34,238 | $35,571 |
United States [Member] | ||
Segment Reporting Information [Line Items] | ||
Total | 19,203 | 21,275 |
Israel [Member] | ||
Segment Reporting Information [Line Items] | ||
Total | 11,824 | 11,652 |
Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Total | $3,211 | $2,644 |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) | 12 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2014 | Apr. 30, 2013 | Apr. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 |
USD ($) | ILS | USD ($) | ILS | Minimum [Member] | Maximum [Member] | Enertec Systems [Member] | Enertec Electronics [Member] | Micronet Lease Properties | Enertecs Properties | Micronet Enertec Technologies Inc. [Member] | |
ILS | ILS | USD ($) | USD ($) | USD ($) | |||||||
Operating Leased Assets [Line Items] | |||||||||||
Lease Expiration Date | 30-Jun-15 | 30-Jun-21 | 31-May-16 | ||||||||
Operating Leases, Rent Expense | $144 | $241 | $118 | ||||||||
Covenants | |||||||||||
Minimum shareholders' equity, amount | 17,000 | 30,000 | |||||||||
Minimum shareholders' equity, percentage | 30.00% | 32.50% | |||||||||
Minimum cash amount | 15,000 | ||||||||||
Minimum solvency ratio | 30.00% | ||||||||||
Grants approved | 1,500 | 5,500 | 1,500 | 5,500 | |||||||
Grant percentage | 40.00% | 40.00% | 30.00% | 30.00% | |||||||
Royalty percentage | 3.00% | 3.50% | |||||||||
Grant revenue | $994 | 3,500 |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Schedule of Future Minimum Payments) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
2015 | $808 |
2016 | 515 |
2017 | 341 |
2018 | $238 |
SUPPLEMENTARY_FINANCIAL_STATEM2
SUPPLEMENTARY FINANCIAL STATEMENTS INFORMATION (Schedule of Other Current Assets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
SUPPLEMENTARY FINANCIAL STATEMENTS INFORMATION [Abstract] | ||
Prepaid expenses | $186 | $211 |
Government departments and agencies | 280 | 322 |
Deferred taxes | 309 | 176 |
Others | 474 | 456 |
Prepaid expense and other assets current | $1,249 | $1,165 |
SUPPLEMENTARY_FINANCIAL_STATEM3
SUPPLEMENTARY FINANCIAL STATEMENTS INFORMATION (Schedule of Other Accounts Payable) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
SUPPLEMENTARY FINANCIAL STATEMENTS INFORMATION [Abstract] | ||
Employees and wage-related liabilities | $1,267 | $1,305 |
Government departments and agencies | 385 | 496 |
Accrued expenses | 556 | 1,266 |
Other current liabilities | 411 | 288 |
Other account payables | $2,619 | $3,355 |
SUPPLEMENTARY_FINANCIAL_STATEM4
SUPPLEMENTARY FINANCIAL STATEMENTS INFORMATION (Schedule of Earnings per Share) (Details) (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Numerator: | ||
Amount for basic earnings per share | ($2,139) | ($495) |
Effect of dilutive instruments | ||
Amount for diluted earnings per share | ($2,139) | ($495) |
Denominator: | ||
Denominator for basic earnings per share - weighted average of shares | 5,834,371 | 5,089,122 |
Effect of dilutive instruments | ||
Denominator for diluted net earnings per share - weighted average shares and assuming dilution | 5,834,371 | 5,089,122 |
Basic earnings per share attributed to Micronet Enertec stockholders | ($0.37) | ($0.10) |
Diluted earnings per share attributed to Micronet Enertec stockholders | ($0.37) | ($0.10) |
SUBSEQUENT_EVENTS_Details
SUBSEQUENT EVENTS (Details) (USD $) | 1 Months Ended | |
In Thousands, unless otherwise specified | Jan. 10, 2015 | 31-May-13 |
Subsequent Event [Line Items] | ||
Repayments of debt | $1,000 | $1,185 |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Repayments of debt | $1,000 |