Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 31, 2017 | Jun. 30, 2016 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | MICRONET ENERTEC TECHNOLOGIES, INC. | ||
Entity Central Index Key | 854,800 | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 7,311,577 | ||
Entity Common Stock, Shares Outstanding | 6,490,658 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 668 | $ 2,361 |
Restricted cash | 4,488 | 4,135 |
Marketable securities | 2,978 | 5,643 |
Trade accounts receivable, net | 11,558 | 12,353 |
Inventories | 5,758 | 7,457 |
Other accounts receivable | 899 | 1,585 |
Total current assets | 26,349 | 33,534 |
Property and equipment, net | 1,641 | 1,816 |
Intangible assets and others, net | 2,381 | 3,297 |
Long term deposit | 86 | 30 |
Goodwill | 1,466 | 1,466 |
Total long term assets | 5,574 | 6,609 |
Total assets | 31,923 | 40,143 |
LIABILITIES AND EQUITY | ||
Short term bank credit and current portion of long term bank loans | 9,993 | 11,012 |
Short term credit from others and current portion of long term loans from others | 3,114 | 1,037 |
Trade accounts payable | 4,130 | 5,710 |
Other accounts payable | 2,383 | 2,484 |
Total current liabilities | 19,620 | 20,243 |
Long term loans from banks | 1,093 | 1,978 |
Long term loan from others | 188 | 375 |
Finance lease | 22 | |
Accrued severance pay, net | 57 | 52 |
Deferred tax liabilities, net | 7 | 17 |
Total long term liabilities | 1,345 | 2,444 |
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, 6,385,092 and 5,865,221 shares issued and outstanding as of December 31, 2016 and 2015, respectively. | 6 | 6 |
Additional paid in capital | 8,748 | 7,812 |
Accumulated other comprehensive income | 11 | (196) |
Retained earnings (loss) | (1,990) | 3,817 |
Micronet Enertec stockholders' equity | 6,775 | 11,439 |
Non-controlling interests | 4,183 | 6,017 |
Total equity | 10,958 | 17,456 |
Total Liabilities and equity | $ 31,923 | $ 40,143 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, shares issued | 6,385,092 | 5,865,221 |
Common stock, shares outstanding | 6,385,092 | 5,865,221 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | ||
Revenues | $ 22,748 | $ 23,587 |
Cost of revenues | 18,598 | 16,284 |
Gross profit | 4,150 | 7,303 |
Operating expenses: | ||
Research and development | 2,320 | 2,453 |
Selling and marketing | 1,941 | 1,530 |
General and administrative | 5,933 | 4,723 |
Amortization of intangible assets | 926 | 1,118 |
Total operating expenses | 11,120 | 9,824 |
Loss from operations | (6,970) | (2,521) |
Finance expense, net | 672 | 610 |
Loss before provision for income taxes | (7,642) | (3,131) |
Taxes on income (benefit) | (129) | (81) |
Net loss | (7,513) | (3,050) |
Net loss attributable to non-controlling interests | 1,706 | 583 |
Net loss attributable to Micronet Enertec | $ (5,807) | $ (2,467) |
Loss per share attributable to Micronet Enertec: | ||
Basic | $ (0.97) | $ (0.42) |
Weighted average common shares outstanding: | ||
Basic | 5,966,622 | 5,861,630 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (7,513) | $ (3,050) |
Other comprehensive Income (loss), net of tax: | ||
Currency translation adjustment | 79 | (27) |
Total comprehensive loss | (7,434) | (3,077) |
Comprehensive loss attributable to the non-controlling interests | 1,834 | 89 |
Comprehensive loss attributable to Micronet Enertec | $ (5,600) | $ (2,988) |
Statements of Changes In Equity
Statements of Changes In Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income | Non-controlling Interest |
Balance at Dec. 31, 2013 | $ 25,598 | $ 6 | $ 8,053 | $ 8,423 | $ 1,389 | $ 7,727 |
Balance, Shares at Dec. 31, 2013 | 5,831,246 | |||||
Shares issued to service provider | 94 | 94 | ||||
Shares issued to service provider, Shares | 25,000 | |||||
Stock-based compensation | 308 | 308 | ||||
Comprehensive loss | (4,028) | (2,139) | (1,064) | (825) | ||
Acquisition of non-controlling interest | (1,723) | (950) | (773) | |||
Balance at Dec. 31, 2014 | 20,249 | $ 6 | 7,505 | 6,284 | 325 | 6,129 |
Balance, Shares at Dec. 31, 2014 | 5,856,246 | |||||
Shares issued to service provider | 30 | 30 | ||||
Shares issued to service provider, Shares | 8,975 | |||||
Stock-based compensation | 306 | 306 | ||||
Comprehensive loss | (3,077) | (2,467) | (521) | (89) | ||
Acquisition of non-controlling interest | (52) | (29) | (23) | |||
Balance at Dec. 31, 2015 | 17,456 | $ 6 | 7,812 | 3,817 | (196) | 6,017 |
Balance, Shares at Dec. 31, 2015 | 5,865,221 | |||||
Shares issued to service provider | 26 | 26 | ||||
Shares issued to service provider, Shares | 13,500 | |||||
Stock-based compensation | 268 | 268 | ||||
Issuance of warrants | 62 | 62 | ||||
Comprehensive loss | (7,434) | (5,807) | 207 | (1,834) | ||
Issuance of shares, net | 580 | 580 | ||||
Issuance of shares, net, Shares | 506,371 | |||||
Balance at Dec. 31, 2016 | $ 10,958 | $ 6 | $ 8,748 | $ (1,990) | $ 11 | $ 4,183 |
Balance, Shares at Dec. 31, 2016 | 6,385,092 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (7,513) | $ (3,050) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 1,369 | 1,599 |
Marketable securities | 27 | 176 |
Change in fair value of derivatives, net | (37) | (8) |
Change in deferred taxes, net | (104) | (195) |
Accrued interests on bank loans | 251 | (18) |
Amortization of note discount | 24 | |
Stock based compensation and shares issued to service providers | 294 | 336 |
Changes in operating assets and liabilities: | ||
Decrease in trade accounts receivable | 908 | 1,798 |
Decrease (Increase) in inventories | 1,767 | (799) |
Increase in accrued severance pay, net | 5 | 23 |
Decrease (increase) in other accounts receivable | 727 | (146) |
Decrease in trade accounts payable | (1,580) | (1,878) |
Decrease in other accounts payable | (86) | (160) |
Net cash used in operating activities | (3,948) | (2,322) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of property and equipment | (241) | (367) |
Restricted cash | (353) | 246 |
Marketable securities | 2,638 | 586 |
Net cash provided by (used in) investing activities | 2,044 | 465 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Short term bank credit | (1,167) | 3,298 |
Receipt of loan from others | 1,957 | 1,412 |
Receipt of long-term loan from banks | 59 | |
Repayment of long term bank loans | (915) | (3,685) |
Acquisition of non-controlling interest | (52) | |
Repayment of loan from others | (164) | |
Repayment of long-term notes | (1,000) | |
Issuance of warrants | 62 | |
Issuance of shares, net | 580 | |
Net cash provided by financing activities | 353 | 32 |
NET CASH DECREASE IN CASH AND CASH EQUIVALENTS | (1,551) | (1,825) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 2,361 | 4,211 |
TRANSLATION ADJUSTMENT OF CASH AND CASH EQUIVALENTS | (142) | (25) |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 668 | 2,361 |
Amount paid during the period for: | ||
Interest | 250 | 217 |
Taxes | $ 99 | $ 164 |
Description of Business
Description of Business | 12 Months Ended |
Dec. 31, 2016 | |
Description of Business [Abstract] | |
DESCRIPTION OF BUSINESS | NOTE 1 — DESCRIPTION OF BUSINESS Overview A. Micronet Enertec Technologies, Inc. (“we,” “Micronet Enertec” or “the Company”), a U.S.-based Delaware corporation, was formed on January 31, 2002. We changed our corporate name from Lapis Technologies, Inc. to Micronet Enertec Technologies, Inc. We operate through two Israel-based companies, Enertec Systems 2001 Ltd (“Enertec”), our wholly-owned subsidiary, and Micronet Ltd (“Micronet”), in which we held 62.9% as of December 31, 2016 and are 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 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
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 lost. 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 income. 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 anticipated contract losses, if any, in the period in which they first became evident. As of December 31, 2016, approximately $4,805 (on December 31, 2015: $4,500) of the accounts receivable balance was unbilled due to the customers’ payment terms. Revenues from the sales of MRM products are recognized when persuasive evidence of an arrangement exists; delivery has occurred, consideration is fixed and determinable; and collection of the resulting receivable is reasonably assured. The title and risk of loss passes to the customer, delivery has 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, 2016 and 2015, the allowance for doubtful accounts amounted to $563 and $1,288, respectively. Reclassifications Certain balance sheet amounts and cash flow have been reclassified to comfort with the current year presentation. 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 7-14 years Furniture and fixtures 10-14 years Transportation equipment 7 years Computer equipment 3 years Stock Based Compensation The Company accounts 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. Research and Development Costs Research and development costs are charged to statements of income as incurred net of grants from the Israel Innovation Authority (IIA)(formerly known as the Israel Office of the Chief Scientist of the Ministry of Economy . Loss per Share Basic net earnings per share are computed based on the weighted average number of ordinary shares outstanding during each year. Long-Lived Assets and 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 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 ended December 31, 2016 and 2015, no indicators of impairment have been identified. 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 was allocated to one reporting unit which included in the MRM division. 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. Comprehensive Income (Loss) 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 translation from functional currency to the presentation currency. 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 740-10-25, “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 February 2016, the FASB issued Accounting Standards Update (ASU) No. 2016-02, which supersedes the lease accounting guidance in ASC 840, Leases. The new guidance requires lessees to recognize a right-of-use asset and a lease liability on the balance sheet for all leases with the exception of short-term leases. For lessees, leases will continue to be classified as either operating or finance leases in the income statement. Lessor accounting is similar to the current model but updated to align with certain changes to the lessee model. The amendments are effective for reporting periods (interim and annual) beginning after December 15, 2018, with early adoption permitted. The amendments must be adopted using a modified retrospective approach. The Company is currently evaluating the impact of the amended guidance on its consolidated financial statements, but does not except to have material impact. In August 2016, the FASB issued Accounting Standards Update (ASU) 2016-15. This update addresses whether to present certain specific cash flow items as operating, investing or financing activities. The amendments are effective for reporting periods (interim and annual) beginning after December 15, 2017. Early adoption is permitted. The amendments will be applied retrospectively to each period presented. The Company is currently evaluating the impact of the amended guidance on its consolidated financial statements, but does not except to have material impact. In November 2016, the FASB issued Accounting Standards Update (ASU) 2016-18. This updates provides guidance on the classification and presentation of changes in restricted cash or restricted cash equivalents in the statement of cash flows under Topic 230, Statement of Cash Flows. The amendments are effective for reporting periods (interim and annual) beginning after December 15, 2017, with early adoption permitted. The amendments will be applied retrospectively to each period presented. The Company is currently evaluating the impact of the amended guidance on its consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from contracts with customers (Topic 606). Under the new standard, revenue is recognized when a customer obtains control of promised goods or services and is recognized in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The FASB has recently issued several amendments to the standard, including clarification on accounting for licenses of intellectual property, identifying performance obligations, principal versus agent considerations and other narrow technical corrections. The new revenue standard (and its related amendments) is effective for reporting periods (interim and annual) beginning after December 15, 2017, with early adoption permitted for reporting periods (interim and annual) beginning after December 15, 2016. The standard permits two methods of adoption: retrospectively to each reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the modified retrospective method). The Company is currently expecting to adopt the standard using the modified retrospective method. The Company is currently examining whether the control of the goods produced in long term contracts is transferred to the customer overtime. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Measurements [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 3 — FAIR VALUE MEASUREMENTS Items carried at fair value as of December 31, 2016 and 2015 are classified in the table below in one of the three categories described in Note 2. Fair value measurements using input type December 31, 2016 Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 668 - - 668 Restricted cash 4,488 - - 4,488 Marketable securities 2,978 - - 2,978 Derivative liability - (9 ) - (9 ) Derivative liability- phantom option - (4 ) - (4 ) $ 8,134 (13 ) - 8,121 Fair value measurements using input type December 31, 2015 Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 2,361 $ - $ - $ 2,361 Restricted cash 4,135 - - 4,135 Marketable securities 5,643 - - 5,643 Derivative liability - (41 ) - (41 ) 12,139 $ (41 ) $ - $ 12,098 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 2015 Raw materials $ 5,103 $ 6,303 Work in process and finished product 655 1,154 $ 5,758 $ 7,457 During 2016, The Company recorded inventory write off at the amount of $953. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 and 2015: December 31, 2016 2015 Leasehold improvements $ 773 $ 839 Machinery and equipment 2,083 2,274 Furniture and fixtures 258 251 Transportation equipment 141 138 Computer equipment 1,343 1,234 4,598 4,736 Less accumulated depreciation (2,957 ) (2,920 ) $ 1,641 $ 1,816 Depreciation expenses totaled $443 and $481, for the years ended December 31, 2016 and 2015, respectively. During 2016, the Company recorded a reduction of $335 of cost and $335 of accumulated depreciation for leasehold improvements and machinery and equipment no longer in use, resulting in no gain or loss. |
Intangible Assets and Others, N
Intangible Assets and Others, Net | 12 Months Ended |
Dec. 31, 2016 | |
Intangible Assets and Others, Net [Abstract] | |
INTANGIBLE ASSETS AND OTHERS, NET | NOTE 6 — INTANGIBLE ASSETS AND OTHERS, NET Composition: Useful life December 31, years 2016 2015 Original amount: Technology 5 $ 2,010 $ 2,010 Customer related intangible assets 3-5 3,470 3,470 $ 5,480 $ 5,480 Accumulated amortization: Technology 5 $ 1,154 $ 752 Customer related intangible assets 3-5 2,237 1,726 5 $ 3,391 $ 2,478 $ 2,089 $ 3,002 Prepaid lease expenses 205 206 Deferred tax assets 87 89 $ 2,381 $ 3,297 The estimated future amortization of the intangible assets (excluded deferred tax assets and prepaid lease) as of December 31, 2016 is as follows: 2017 890 2018 846 2019 353 $ 2,089 |
Short Term Bank Loans
Short Term Bank Loans | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
SHORT TERM BANK LOANS: | NOTE 7 - SHORT TERM BANK LOANS Composition: Interest rate as of Total short-term liabilities 2016 Linkage December 31, % basis 2016 2015 Due to banks Prime plus 0.7%- Prime plus 2.45% NIS $ 9,045 $ 9,701 Current portion 948 1,311 $ 9,993 $ 11,012 As of December 31, 2016, the Company had short term bank credit of $9,993 comprised as follows: $948 current portion of long term loans and $9,045 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, 2015, the Company had short term bank credit of $11,012 comprised as follows: $1,311 current portion of long term loans and $9,701 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. The Company has committed to certain covenants under its bank loans. See also note 15. The Restricted cash in the balance sheets stands as collateral in favor of the loans. |
Long Term Loans from Banks
Long Term Loans from Banks | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
LONG TERM LOANS FROM BANKS | NOTE 8 — LONG TERM LOANS FROM BANKS 1. Composition: Interest rate as of December 31, Total long-term liabilities, net of current portion 2016 Linkage December 31, % basis 2016 2015 Due to banks Prime plus 1.25%- Prime plus 2.45% NIS $ 2,041 $ 3,289 Less– current portion (948 ) (1,311 ) $ 1,093 $ 1,978 2. Long-term loans from banks are due as follows: December 31, 2016 2015 First year (current portion) $ 948 $ 1,311 Second year 547 903 Third year 546 538 Fourth year and thereafter - 537 $ 2,041 $ 3,289 The Company has committed to certain covenants under its bank loans. See also note 15. |
Loan from Others
Loan from Others | 12 Months Ended |
Dec. 31, 2016 | |
Loan from Others [Abstract] | |
LOAN FROM OTHERS | NOTE 9 — LOAN FROM OTHERS On September 2, 2015, Enertec entered into a Credit Line Agreement with a financing firm, or the Financing Firm, pursuant to which the Financing Firm agreed to grant Enertec a credit line. The maximum aggregate amount of the Credit Line Agreement is $675 and up to 85% of open trade receivables invoices. The annual interest rate is Prime plus 1.75%. The Credit Line Agreement will expire on April 30, 2017. As of December 31, 2016, Enertec had financed $669 pursuant to the Credit Line Agreement. On December 30, 2015, the Company entered into a Loan Agreement (the “Meydan Loan”), with Meydan Family Trust No. 3 (“Meydan”), pursuant to which Meydan agreed to loan the Company $750, on certain terms and conditions. The proceeds of the Meydan Loan have been used by the Company for working capital and general corporate needs. The Meydan loan bears interest at the rate of Libor plus 8% and shall be repaid in 4 equal installments beginning on April 10, 2017. On June 30, October 28, and December 22, 2016, the Company and its wholly-owned subsidiary, Enertec Electronics Ltd., entered into a Note Purchase Agreements with YA II, or the Note Purchase Agreements, whereby YA II purchased $600, $500 and $1,000 of notes from the Company, or the Notes, respectively. The outstanding principal balance of the Notes bears interest at 7% per annum. Upon the occurrence of an Event of Default (as defined in the Notes), all amounts payable may be due immediately. In connection with the Note Purchase Agreements, the Company granted to YA II a five-year warrant, or the Warrants, to purchase 252,000 shares of the Company’s common stock at an exercise price of $ 3 per share. In accordance with the ASC 815-40 The Company analyzed the warrants issued and concluded that they meet the definition of an equity instrument. In accordance with ASC 470 "Debt", the Company allocated the total proceeds between the loan and the warrants based on their relative fair value at the closing date. As a result the Company recorded a discount amount of $62 based on the fair value of each warrant on its grant date. |
Accrued Severence Pay, Net
Accrued Severence Pay, Net | 12 Months Ended |
Dec. 31, 2016 | |
Accrued Severence 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, 2016 2015 Accrued severance pay $ 1,585 $ 1,620 Less - amount funded (1,528 ) (1,568 ) $ 57 $ 52 |
Provision (Benefit) for Income
Provision (Benefit) for Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Provision (Benefit) for Income Taxes [Abstract] | |
PROVISION (BENEFIT) FOR INCOME TAXES | NOTE 11 — PROVISION (BENEFIT) 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 2016 and 26.5% in 2015. 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 2015 and 2016, Micronet was taxed at the 16% rate and Enertec was taxed at the 9% rate. In December 2016, the Israeli government published the Economic Efficiency Law (2016) (legislative amendments to accomplish budget goals for the years 2017 and 2018). According to such law, in 2017 the general tax rate will decrease by 1% and starting 2018 by 2%; so that the tax rate will be 24% in 2017 and 23% in 2018 and onwards. In addition, the tax rate that applies to Preferred Enterprises in preferred area will be decreased by 1.5% to 7.5% starting January 1, 2017. B. Provision for Taxes Year ended 2016 2015 Current: Domestic $ - $ - Foreign (Israel) - 181 - 181 Taxes related to prior years (25 ) (43 ) Deferred: Deferred taxes, net (104 ) (219 ) Total provision for income taxes $ (129 ) $ (81 ) C. The reconciliation of income tax at the U.S. statutory rate to the Company’s effective tax rate as follows: 2016 2015 U.S. federal statutory rate 35 % 35 % Tax rate difference between U.S. and Israel (10 )% (8.5 )% Effect of Israeli tax rate benefit (17.5 )% (14 )% Effect of previous years - % (5 )% Change in valuation allowance - % (4.9 )% Others (5.9 )% - % Effective Tax Rate 1.6 % 2.6 % D. Deferred Tax Assets and Liabilities Deferred tax reflects 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, 2016 and 2015, the Company’s deferred taxes were in respect of the following: December 31, 2016 2015 Net operating loss carry forward $ 3,343 $ 1,668 Provisions for employee rights and other temporary differences 209 91 Deferred tax assets before valuation allowance 3,552 1,759 Valuation allowance (2,887 ) (1,188 ) Deferred tax assets 665 571 Deferred tax liability 7 17 Deferred tax assets, net $ 658 $ 554 E. Tax losses As of December 31, 2016, the Company has a net operating loss carry forward of approximately $4,921, 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 2012, and with regard to the Israeli subsidiaries received final tax assessments up until tax year 2012. G. Uncertain Tax Position The Company did not record any liability for income taxes associated with unrecognized tax benefits during 2016 and 2015. |
Related Parties
Related Parties | 12 Months Ended |
Dec. 31, 2016 | |
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., an entity controlled by Mr. Lucatz, 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, 2016 2015 Consulting fee paid to controlling shareholder $ 386 $ 383 Stock based compensation granted to controlling shareholder 89 107 Total $ 475 $ 490 |
Shareholder's Equity
Shareholder's Equity | 12 Months Ended |
Dec. 31, 2016 | |
Shareholder's Equity [Abstract] | |
SHAREHOLDER'S EQUITY | NOTE 13 — SHAREHOLDER'S EQUITY A. Common stock: Common Stock confers upon its 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 October 2015, the 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 1,000,000 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 $268 and $306 for the years ended December 31, 2016 and 2015, 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, 2016, 254,000 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. As of December 31, 2016, 52,525 stock options remain available for future awards under the 2014 Stock Incentive Plan. The following table summarizes information about stock options outstanding and exercisable as of December 31, 2016: Options Outstanding Options Exercisable Number Weighted Average Number Exercise Price Years $ 20,000 6.5 20,000 4.3 586,000 8 579,333 4.3 140,000 8.5 46,667 4.3 746,000 646,000 2016 2015 Number of Weighted Average Exercise Price Number of Weighted Average Exercise Price $ $ Options outstanding at the beginning of year 746,000 4.30 606,000 4.3 Changes during the year: Granted - - 140,000 4.3 Exercised - - - - Forfeited - - - - Options outstanding at end of year 746,000 4.3 746,000 4.3 Options exercisable at year-end 646,000 4.3 397,334 Weighted-average fair value of options granted during the year $ - $ 1.09 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: 2015 – 39%; risk-free interest rate: 2015 – 1.9%; and expected life: 2015- 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 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. In May 2015, the Company issued 8,975 restricted shares to a service provider under the 2014 Stock Incentive Plan. An expense of $30 was recorded at the grant date based on the market price of the issued shares on the grant date. In April 2016, the Company issued 13,500 restricted shares to a service provider under the 2014 Stock Incentive Plan. An expense of $26 was recorded at the grant date based on the market price of the issued shares on the grant date. On June 30, 2016, we entered into a Standby Equity Distribution Agreement, or the SEDA, with YA II PV Ltd., or YA II, a Cayman Island exempt limited partnership and an affiliate of Yorkville Advisors Global, LLC, for the sale of up to $2.39 million of shares of the Company’s common stock, par value $0.001 per share, over a three-year commitment period. Under the terms of the SEDA, the Company may from time to time, in its discretion, sell newly-issued shares of its common stock to YA II at a discount to market of 1.5%. The Company expects to issue shares of common stock under the SEDA pursuant to its effective Registration Statement on Form S-3 (Registration No. 333-196760), or the Registration Statement. The Company is not obligated to utilize any of the funds available under the SEDA and there are no minimum commitments or minimum use penalties. The total amount of funds that ultimately can be raised under the SEDA over the three-year term will depend on the market price for the Company’s common stock and the number of shares actually sold. The SEDA does not impose any restrictions on the Company’s operating activities. During the term of the SEDA, YA II is prohibited from engaging in any short selling or hedging transactions related to the Company’s common stock. As of December 31, 2016, the Company sold YA II an aggregate of 506,371 shares of its common stock for an aggregate sale amount of $768 pursuant to the SEDA and under the Registration Statement. The aggregate issuance costs amounted to $188. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 and 2015: Summarized financial information by segment for the years ended December 31, 2016, based on the Company’s internal financial reporting system utilized by the Company’s chief operating decision makers, follows: Defense and aerospace Mobile resource management Consolidated Revenues from external customers $ 9,464 $ 13,284 $ 22,748 Segment operating income (loss) (983 ) (1) (4,527) (5,510 ) Non allocated expenses (1,460 ) Finance expenses, net (672 ) Consolidated loss before provision for income taxes $ (7,642 ) (1) Includes $926 of intangible assets amortization, derived from Micronet and Micronet Inc. acquisitions. Revenue from the Company’s major customers representing 10% or more of total revenue for the years ended December 31, 2016 and 2015 were as follows: Year ended 2016 2015 Customer A 34 % 30 % Customer B 13 % 11 % Revenue from customers in the geographic regions based on the location of customers’ headquarters is as follows: Year ended 2016 2015 United States $ 9,867 $ 12,116 Israel 9,645 9,150 Other 3,236 2,321 Total $ 22,748 $ 23,587 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 15 — COMMITMENTS AND CONTINGENCIES Lease commitments- Micronet’s short term lease expires in June 2017. Accrual rent fee is approximately $77 per year including a property management fee. Micronet Inc.'s lease was extended on a month by month basis in May 2016 until either party provides written three month notice to the other. Its accrual rent fee is approximately $200 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 $237 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, 2016, 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 2017 $ 727 2018 307 2019 271 2020 $ 237 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 has covenanted under its bank loans at June 30 and December 31 of each year, among other things that (1) its shareholder’s equity according to its financial statements will not fall below NIS 17 million, and (2) its shareholder’s equity will not be lower than 30% of the total liabilities on its balance sheet. Enertec has not met all of its bank covenants as of December 31, 2016; As a result the Company reclassified its loans from long-term to short-term liabilities. Certain restricted cash is used as collateral to secure the loans. ● 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, 2016. . The restricted cash stands as collateral for the loan. ● In addition, Micronet has undertaken under its bank loan documents the following financial covenants: (i) a cash and marketable securities 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 not met all of its bank covenants as of December 31, 2016. After the end of the reporting period, Micronet repaid all of its loans to the bank. Chief Scientist In April 2013, Micronet submitted to the Israeli Office of the Chief Scientist of the Ministry of Economy, or 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 NIS 5.5 million (approximately $1.5 million) 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 NIS 5.5 million (approximately $1.5 million). 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. In addition, during 2015 Micronet received further confirmation for a grant from the OCS in the total amount of NIS 5.1 million (approximately $1.3 million) at a level of 40% from the aforementioned amount. Micronet is obligated to pay royalties to the OCS amounting to 3%-3.5% of 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 NIS 5.6 million (approximately $1.4) from the OCS under these three grants. |
Supplementary Financial Stateme
Supplementary Financial Statements Information | 12 Months Ended |
Dec. 31, 2016 | |
Supplementary Financial Statements Information [Abstract] | |
SUPPLEMENTARY FINANCIAL STATEMENTS INFORMATION | NOTE 16 — SUPPLEMENTARY FINANCIAL STATEMENTS INFORMATION A. Other accounts receivable: December 31, 2016 2015 Prepaid expenses $ 128 $ 311 Government departments and agencies 65 280 Deferred taxes 580 482 Others 126 512 $ 899 $ 1,585 B. Other Accounts Payable: December 31, 2016 2015 Employees and wage-related liabilities $ 1,188 $ 1,188 Government departments and agencies 409 345 Accrued expenses 650 705 Other current liabilities 136 246 $ 2,383 $ 2,484 C. Earnings (loss) per Share: Basic and diluted earnings (losses) 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 (losses) per share attributable to Micronet Enertec: Year ended 2016 2015 Numerator: Amount for basic earnings per share $ (5,807 ) $ (2,467 ) Effect of dilutive instruments - - Amount for diluted earnings per share (5,807 ) (2,467 ) Denominator: Denominator for basic earnings per share - weighted average of shares 5,966,662 5,861,630 Basic earnings per share attributed to Micronet Enertec stockholders $ (0.97 ) $ (0.42 ) |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 17 — SUBSEQUENT EVENTS 1. On January, 2017, the Company issued 6,750 restricted shares to a service provider under the 2014 Stock Incentive Plan. An expense of $26 was recorded at the grant date based on the market price of the issued shares on the grant date. 2. On February 19, 2017 Micronet Ltd., ("Micronet") our subsidiary in which we have a controlling interest, filled an immediate report in the Tel Aviv Stock Exchange announcing its intention to raise equity funds pursuant to a public offering to be consummated pursuant to Micronet's in effect shelf prospectus effective as of February 2014 (the "Transaction").On February 23, 2017 Micronet filled an immediate report in the Tel Aviv Stock Exchange announcing the results of the Transaction. A total of 6, 100,000 shares of the company common stock in value of NIS 0.1 per share where offered to the public, 5,468,900 shares were sold pursuant to the transaction. The net proceeds from this offering will be approximately NIS 9,844,020.00 million . 3. On February 09, 22 and March 15, 2017 the Company offered YA II 39,062, 28,985 and 30,769 shares of its common stock, respectively, for a total sale amount of $130 pursuant to the SEDA and under the Registration Statement. 4. On March __ the company's BOD approved a spinoff of the aerospace and defense division of the company into a stand-alone entity. Upon completion, the Company's shareholders will own 100% of the outstanding shares of common stock in the NEW CO, on a pro-rata basis. The spin-off is subject to certain customary conditions. Shareholder approval of the spin-off is not required. The company intend to file a Form 10 and it is pending the SEC approval. Immediately after the distribution becomes effective by the SEC, the NEW CO will be an independent company, which we intend to have the NEWCO stock traded on the OTCQB. |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
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 lost. 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 income. |
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 anticipated contract losses, if any, in the period in which they first became evident. As of December 31, 2016, approximately $4,805 (on December 31, 2015: $4,500) of the accounts receivable balance was unbilled due to the customers’ payment terms. Revenues from the sales of MRM products are recognized when persuasive evidence of an arrangement exists; delivery has occurred, consideration is fixed and determinable; and collection of the resulting receivable is reasonably assured. The title and risk of loss passes to the customer, delivery has 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, 2016 and 2015, the allowance for doubtful accounts amounted to $563 and $1,288, respectively. |
Reclassifications | Reclassifications Certain balance sheet amounts and cash flow have been reclassified to comfort with the current year presentation. |
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 7-14 years Furniture and fixtures 10-14 years Transportation equipment 7 years Computer equipment 3 years |
Stock Based Compensation | Stock Based Compensation The Company accounts 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. |
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 Innovation Authority (IIA)(formerly known as the Israel Office of the Chief Scientist of the Ministry of Economy . |
Loss per Share | Loss per Share Basic net earnings per share are computed based on the weighted average number of ordinary shares outstanding during each year. |
Long-Lived Assets and Intangible assets | Long-Lived Assets and 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 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 ended December 31, 2016 and 2015, no indicators of impairment have been identified. |
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 was allocated to one reporting unit which included in the MRM division. 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. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) 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 translation from functional currency to the presentation currency. |
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 740-10-25, “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 February 2016, the FASB issued Accounting Standards Update (ASU) No. 2016-02, which supersedes the lease accounting guidance in ASC 840, Leases. The new guidance requires lessees to recognize a right-of-use asset and a lease liability on the balance sheet for all leases with the exception of short-term leases. For lessees, leases will continue to be classified as either operating or finance leases in the income statement. Lessor accounting is similar to the current model but updated to align with certain changes to the lessee model. The amendments are effective for reporting periods (interim and annual) beginning after December 15, 2018, with early adoption permitted. The amendments must be adopted using a modified retrospective approach. The Company is currently evaluating the impact of the amended guidance on its consolidated financial statements, but does not except to have material impact. In August 2016, the FASB issued Accounting Standards Update (ASU) 2016-15. This update addresses whether to present certain specific cash flow items as operating, investing or financing activities. The amendments are effective for reporting periods (interim and annual) beginning after December 15, 2017. Early adoption is permitted. The amendments will be applied retrospectively to each period presented. The Company is currently evaluating the impact of the amended guidance on its consolidated financial statements, but does not except to have material impact. In November 2016, the FASB issued Accounting Standards Update (ASU) 2016-18. This updates provides guidance on the classification and presentation of changes in restricted cash or restricted cash equivalents in the statement of cash flows under Topic 230, Statement of Cash Flows. The amendments are effective for reporting periods (interim and annual) beginning after December 15, 2017, with early adoption permitted. The amendments will be applied retrospectively to each period presented. The Company is currently evaluating the impact of the amended guidance on its consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from contracts with customers (Topic 606). Under the new standard, revenue is recognized when a customer obtains control of promised goods or services and is recognized in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The FASB has recently issued several amendments to the standard, including clarification on accounting for licenses of intellectual property, identifying performance obligations, principal versus agent considerations and other narrow technical corrections. The new revenue standard (and its related amendments) is effective for reporting periods (interim and annual) beginning after December 15, 2017, with early adoption permitted for reporting periods (interim and annual) beginning after December 15, 2016. The standard permits two methods of adoption: retrospectively to each reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the modified retrospective method). The Company is currently expecting to adopt the standard using the modified retrospective method. The Company is currently examining whether the control of the goods produced in long term contracts is transferred to the customer overtime. |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Schedule of annual rates of depreciation | Leasehold improvements Over the shorter of the lease term or the life of the assets Machinery and equipment 7-14 years Furniture and fixtures 10-14 years Transportation equipment 7 years Computer equipment 3 years |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Measurements [Abstract] | |
Schedule of fair value measurements | Fair value measurements using input type December 31, 2016 Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 668 - - 668 Restricted cash 4,488 - - 4,488 Marketable securities 2,978 - - 2,978 Derivative liability - (9 ) - (9 ) Derivative liability- phantom option - (4 ) - (4 ) $ 8,134 (13 ) - 8,121 Fair value measurements using input type December 31, 2015 Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 2,361 $ - $ - $ 2,361 Restricted cash 4,135 - - 4,135 Marketable securities 5,643 - - 5,643 Derivative liability - (41 ) - (41 ) 12,139 $ (41 ) $ - $ 12,098 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Inventories [Abstract] | |
Schedule of inventories | December 31, 2016 2015 Raw materials $ 5,103 $ 6,303 Work in process and finished product 655 1,154 $ 5,758 $ 7,457 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property and Equipment, Net [Abstract] | |
Summary of property and equipment | December 31, 2016 2015 Leasehold improvements $ 773 $ 839 Machinery and equipment 2,083 2,274 Furniture and fixtures 258 251 Transportation equipment 141 138 Computer equipment 1,343 1,234 4,598 4,736 Less accumulated depreciation (2,957 ) (2,920 ) $ 1,641 $ 1,816 |
Intangible Assets and Others,30
Intangible Assets and Others, Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Intangible Assets and Others, Net [Abstract] | |
Schedule of intangible assets | Useful life December 31, years 2016 2015 Original amount: Technology 5 $ 2,010 $ 2,010 Customer related intangible assets 3-5 3,470 3,470 $ 5,480 $ 5,480 Accumulated amortization: Technology 5 $ 1,154 $ 752 Customer related intangible assets 3-5 2,237 1,726 5 $ 3,391 $ 2,478 $ 2,089 $ 3,002 Prepaid lease expenses 205 206 Deferred tax assets 87 89 $ 2,381 $ 3,297 |
Summary of estimated future amortization of the intangible assets | 2017 890 2018 846 2019 353 $ 2,089 |
Short Term Bank Loans (Tables)
Short Term Bank Loans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of short term bank loans | Interest rate as of Total short-term liabilities 2016 Linkage December 31, % basis 2016 2015 Due to banks Prime plus 0.7%- Prime plus 2.45% NIS $ 9,045 $ 9,701 Current portion 948 1,311 $ 9,993 $ 11,012 |
Long Term Loans from Banks (Tab
Long Term Loans from Banks (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of long term composition | Interest rate as of December 31, Total long-term liabilities, net of current portion 2016 Linkage December 31, % basis 2016 2015 Due to banks Prime plus 1.25%- Prime plus 2.45% NIS $ 2,041 $ 3,289 Less– current portion (948 ) (1,311 ) $ 1,093 $ 1,978 |
Summary of long term loans from banks | December 31, 2016 2015 First year (current portion) $ 948 $ 1,311 Second year 547 903 Third year 546 538 Fourth year and thereafter - 537 $ 2,041 $ 3,289 |
Accrued Severence Pay, Net (Tab
Accrued Severence Pay, Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accrued Severence Pay, Net [Abstract] | |
Schedule of amounts funded with managers' insurance policies | December 31, 2016 2015 Accrued severance pay $ 1,585 $ 1,620 Less - amount funded (1,528 ) (1,568 ) $ 57 $ 52 |
Provision (Benefit) for Incom34
Provision (Benefit) for Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Provision (Benefit) for Income Taxes [Abstract] | |
Schedule of provision (benefit) for taxes | Year ended 2016 2015 Current: Domestic $ - $ - Foreign (Israel) - 181 - 181 Taxes related to prior years (25 ) (43 ) Deferred: Deferred taxes, net (104 ) (219 ) Total provision for income taxes $ (129 ) $ (81 ) |
Schedule of reconciliation of income taxes | 2016 2015 U.S. federal statutory rate 35 % 35 % Tax rate difference between U.S. and Israel (10 )% (8.5 )% Effect of Israeli tax rate benefit (17.5 )% (14 )% Effect of previous years - % (5 )% Change in valuation allowance - % (4.9 )% Others (5.9 )% - % Effective Tax Rate 1.6 % 2.6 % |
Schedule of deferred tax assets and liabilities | December 31, 2016 2015 Net operating loss carry forward $ 3,343 $ 1,668 Provisions for employee rights and other temporary differences 209 91 Deferred tax assets before valuation allowance 3,552 1,759 Valuation allowance (2,887 ) (1,188 ) Deferred tax assets 665 571 Deferred tax liability 7 17 Deferred tax assets, net $ 658 $ 554 |
Related Parties (Tables)
Related Parties (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Related Parties [Abstract] | |
Schedule of transactions with related parties | Year ended December 31, 2016 2015 Consulting fee paid to controlling shareholder $ 386 $ 383 Stock based compensation granted to controlling shareholder 89 107 Total $ 475 $ 490 |
Shareholder's Equity (Tables)
Shareholder's Equity (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Shareholder's Equity [Abstract] | |
Summary of options outstanding and exercisable | Options Outstanding Options Exercisable Number Weighted Average Number Exercise Price Years $ 20,000 6.5 20,000 4.3 586,000 8 579,333 4.3 140,000 8.5 46,667 4.3 746,000 646,000 |
Summary of company's stock option activity | 2016 2015 Number of Weighted Average Exercise Price Number of Weighted Average Exercise Price $ $ Options outstanding at the beginning of year 746,000 4.30 606,000 4.3 Changes during the year: Granted - - 140,000 4.3 Exercised - - - - Forfeited - - - - Options outstanding at end of year 746,000 4.3 746,000 4.3 Options exercisable at year-end 646,000 4.3 397,334 Weighted-average fair value of options granted during the year $ - $ 1.09 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of company's internal financial reporting system | Defense and aerospace Mobile resource management Consolidated Revenues from external customers $ 9,464 $ 13,284 $ 22,748 Segment operating income (loss) (983 ) (1) (4,527) (5,510 ) Non allocated expenses (1,460 ) Finance expenses, net (672 ) Consolidated loss before provision for income taxes $ (7,642 ) (1) Includes $926 of intangible assets amortization, derived from Micronet and Micronet Inc. acquisitions. |
Schedule of revenue from the company's major customers | Year ended 2016 2015 Customer A 34 % 30 % Customer B 13 % 11 % |
Schedule of revenue from customers in the geographic regions | Year ended 2016 2015 United States $ 9,867 $ 12,116 Israel 9,645 9,150 Other 3,236 2,321 Total $ 22,748 $ 23,587 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies [Abstract] | |
Schedule of total minimum cars and lease rentals under non-cancelable operating leases | Year Ending December 31, Amount 2017 $ 727 2018 307 2019 271 2020 $ 237 |
Supplementary Financial State39
Supplementary Financial Statements Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Supplementary Financial Statements Information [Abstract] | |
Schedule of other accounts receivable | December 31, 2016 2015 Prepaid expenses $ 128 $ 311 Government departments and agencies 65 280 Deferred taxes 580 482 Others 126 512 $ 899 $ 1,585 |
Schedule of other accounts payable | December 31, 2016 2015 Employees and wage-related liabilities $ 1,188 $ 1,188 Government departments and agencies 409 345 Accrued expenses 650 705 Other current liabilities 136 246 $ 2,383 $ 2,484 |
Schedule of basic and diluted net earnings (losses) | Year ended 2016 2015 Numerator: Amount for basic earnings per share $ (5,807 ) $ (2,467 ) Effect of dilutive instruments - - Amount for diluted earnings per share (5,807 ) (2,467 ) Denominator: Denominator for basic earnings per share - weighted average of shares 5,966,662 5,861,630 Basic earnings per share attributed to Micronet Enertec stockholders $ (0.97 ) $ (0.42 ) |
Description of Business (Detail
Description of Business (Details) | Dec. 31, 2016 |
Micronet Ltd [Member] | |
Description of Business (Textual) | |
Ownership percentage | 62.90% |
Summary of Significant Accoun41
Summary of Significant Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Machinery and equipment [Member] | Minimum [Member] | |
Schedule of annual rates of depreciation | |
Property and equipment, estimated useful lives | 7 years |
Machinery and equipment [Member] | Maximum [Member] | |
Schedule of annual rates of depreciation | |
Property and equipment, estimated useful lives | 14 years |
Furniture and fixtures [Member] | Minimum [Member] | |
Schedule of annual rates of depreciation | |
Property and equipment, estimated useful lives | 10 years |
Furniture and fixtures [Member] | Maximum [Member] | |
Schedule of annual rates of depreciation | |
Property and equipment, estimated useful lives | 14 years |
Transportation equipment [Member] | |
Schedule of annual rates of depreciation | |
Property and equipment, estimated useful lives | 7 years |
Computer equipment [Member] | |
Schedule of annual rates of depreciation | |
Property and equipment, estimated useful lives | 3 years |
Summary of Significant Accoun42
Summary of Significant Accounting Policies (Details Textual) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Summary of Significant Accounting Policies (Textual) | ||
Unbilled accounts receivables | $ 4,805 | $ 4,500 |
Allowance for doubtful accounts | $ 563 | $ 1,288 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of fair value measurements | ||
Cash and cash equivalents | $ 668 | $ 2,361 |
Restricted cash | 4,488 | 4,135 |
Marketable securities | 2,978 | 5,643 |
Derivative liability | (9) | (41) |
Derivative liability- phantom option | (4) | |
Fair value measurements, Total | 8,121 | 12,098 |
Level 1 [Member] | ||
Schedule of fair value measurements | ||
Cash and cash equivalents | 668 | 2,361 |
Restricted cash | 4,488 | 4,135 |
Marketable securities | 2,978 | 5,643 |
Derivative liability | ||
Derivative liability- phantom option | ||
Fair value measurements, Total | 8,134 | 12,139 |
Level 2 [Member] | ||
Schedule of fair value measurements | ||
Cash and cash equivalents | ||
Restricted cash | ||
Marketable securities | ||
Derivative liability | (9) | (41) |
Derivative liability- phantom option | (4) | |
Fair value measurements, Total | (13) | (41) |
Level 3 [Member] | ||
Schedule of fair value measurements | ||
Cash and cash equivalents | ||
Restricted cash | ||
Marketable securities | ||
Derivative liability | ||
Derivative liability- phantom option | ||
Fair value measurements, Total |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of inventories | ||
Raw materials | $ 5,103 | $ 6,303 |
Work in process and finished product | 655 | 1,154 |
Inventories | $ 5,758 | $ 7,457 |
Inventories (Details Textual)
Inventories (Details Textual) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Inventories (Textual) | |
Inventory write off | $ 953 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Summary of property and equipment | ||
Property and equipment, Gross | $ 4,598 | $ 4,736 |
Less accumulated depreciation | (2,957) | (2,920) |
Property and equipment, Net | 1,641 | 1,816 |
Leasehold improvements [Member] | ||
Summary of property and equipment | ||
Property and equipment, Gross | 773 | 839 |
Machinery and equipment [Member] | ||
Summary of property and equipment | ||
Property and equipment, Gross | 2,083 | 2,274 |
Furniture and fixtures [Member] | ||
Summary of property and equipment | ||
Property and equipment, Gross | 258 | 251 |
Transportation equipment [Member] | ||
Summary of property and equipment | ||
Property and equipment, Gross | 141 | 138 |
Computer equipment [Member] | ||
Summary of property and equipment | ||
Property and equipment, Gross | $ 1,343 | $ 1,234 |
Property and Equipment, Net (47
Property and Equipment, Net (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Property and Equipment, Net (Textual) | ||
Depreciation expenses | $ 443 | $ 481 |
Leasehold improvements [Member] | ||
Property and Equipment, Net (Textual) | ||
Accumulated depreciation | 335 | |
Machinery and equipment [Member] | ||
Property and Equipment, Net (Textual) | ||
Accumulated depreciation | $ 335 |
Intangible Assets and Others,48
Intangible Assets and Others, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | ||
Original amount | $ 5,480 | $ 5,480 |
Accumulated amortization | $ 3,391 | 2,478 |
Accumulated amortization, Useful life years | 5 years | |
Intangible assets, net | $ 2,089 | 3,002 |
Prepaid lease expenses | 205 | 206 |
Deferred tax assets | 87 | 89 |
Intangible assets and others, net | 2,381 | 3,297 |
Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Original amount | $ 2,010 | 2,010 |
Useful life years | 5 years | |
Accumulated amortization | $ 1,154 | 752 |
Accumulated amortization, Useful life years | 5 years | |
Customer related intangible assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Original amount | $ 3,470 | 3,470 |
Accumulated amortization | $ 2,237 | $ 1,726 |
Customer related intangible assets [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life years | 5 years | |
Accumulated amortization, Useful life years | 5 years | |
Customer related intangible assets [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life years | 3 years | |
Accumulated amortization, Useful life years | 3 years |
Intangible Assets and Others,49
Intangible Assets and Others, Net (Details 1) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Summary of estimated future amortization of the intangible assets | ||
2,017 | $ 890 | |
2,018 | 846 | |
2,019 | 353 | |
Intangible assets, net | $ 2,089 | $ 3,002 |
Short Term Bank Loans (Details)
Short Term Bank Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Current portion | $ 948 | $ 1,311 |
Total short-term liabilities | 9,993 | 11,012 |
NIS [Member] | ||
Debt Instrument [Line Items] | ||
Due to banks | $ 9,045 | $ 9,701 |
NIS [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 0.70% | |
NIS [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 2.45% |
Short Term Bank Loans (Details
Short Term Bank Loans (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Short Term Bank Loans (Textual) | ||
Short term bank | $ 9,993 | $ 11,012 |
Current portion of long term loans | 948 | 1,311 |
Short term bank loans | $ 9,993 | $ 11,012 |
Description of short term bank loans interest rate | 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. | 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. |
Short Term Loan [Member] | ||
Short Term Bank Loans (Textual) | ||
Short term bank | $ 9,045 | $ 9,701 |
Long Term Loans from Banks (Det
Long Term Loans from Banks (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | ||
Less - current portion | $ (948) | $ (1,311) |
Long-term loans from banks | 1,093 | 1,978 |
NIS [Member] | ||
Debt Instrument [Line Items] | ||
Due to banks | $ 2,041 | $ 3,289 |
NIS [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 1.25% | |
NIS [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 2.45% |
Long Term Loans from Banks (D53
Long Term Loans from Banks (Details 1) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Summary of long-term loans from banks | ||
First year (current portion) | $ 948 | $ 1,311 |
Second year | 547 | 903 |
Third year | 546 | 538 |
Fourth year and thereafter | 537 | |
Long-term loans from banks | $ 2,041 | $ 3,289 |
Loan from Others (Details)
Loan from Others (Details) - USD ($) $ / shares in Units, $ in Thousands | Sep. 02, 2015 | Dec. 30, 2015 | Dec. 31, 2016 | Dec. 22, 2016 | Oct. 28, 2016 | Jun. 30, 2016 | Apr. 30, 2013 |
Loan from Others (Textual) | |||||||
Warrants exercise price | $ 6.25 | ||||||
Debt discount amount | $ 62 | ||||||
Note Purchase Agreements [Member] | |||||||
Loan from Others (Textual) | |||||||
Term of warrants | 5 years | ||||||
Purchase warrants of common stock | 252,000 | ||||||
Warrants exercise price | $ 3 | ||||||
Outstanding principal balance | $ 1,000 | $ 500 | $ 600 | ||||
Interest rate | 7.00% | ||||||
Meydan [Member] | |||||||
Loan from Others (Textual) | |||||||
Loan agreement amount | $ 750 | ||||||
Description of interest rate | The Meydan loan bears interest at the rate of Libor plus 8% and shall be repaid in 4 equal installments beginning on April 10, 2017. | ||||||
Credit Line Agreement [Member] | |||||||
Loan from Others (Textual) | |||||||
Maximum aggregate amount of credit line agreement | $ 675 | ||||||
Financing percentage of each receivable invoice under credit line agreement | 85.00% | ||||||
Annual interest rate | 1.75% | ||||||
Credit line expiration date | Apr. 30, 2017 | ||||||
Line of credit | $ 669 |
Accrued Severence Pay, Net (Det
Accrued Severence Pay, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Accrued Severence Pay, Net [Abstract] | ||
Accrued severance pay | $ 1,585 | $ 1,620 |
Less - amount funded | (1,528) | (1,528) |
Accrued severance pay, net | $ 57 | $ 52 |
Provision (Benefit) for Incom56
Provision (Benefit) for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Current: | ||
Domestic | ||
Foreign (Israel) | 181 | |
Current income tax expense benefit | 181 | |
Taxes related to prior years | (25) | (43) |
Deferred: | ||
Deferred taxes, net | (104) | (219) |
Total provision for income taxes | $ (129) | $ (81) |
Provision (Benefit) for Incom57
Provision (Benefit) for Income Taxes (Details 1) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Provision (Benefit) for Income Taxes [Abstract] | ||
U.S. federal statutory rate | 35.00% | 35.00% |
Tax rate difference between U.S. and Israel | (10.00%) | (8.50%) |
Effect of Israeli tax rate benefit | (17.50%) | (14.00%) |
Effect of previous years | (5.00%) | |
Change in valuation allowance | (4.90%) | |
Others | (5.90%) | |
Effective Tax Rate | 1.60% | 2.60% |
Provision (Benefit) for Incom58
Provision (Benefit) for Income Taxes (Details 2) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Provision (Benefit) for Income Taxes [Abstract] | ||
Net operating loss carry forward | $ 3,343 | $ 1,668 |
Provisions for employee rights and other temporary differences | 209 | 91 |
Deferred tax assets before valuation allowance | 3,552 | 1,759 |
Valuation allowance | (2,887) | (1,188) |
Deferred tax assets | 665 | 571 |
Deferred tax liability | 7 | 17 |
Deferred tax assets, net | $ 658 | $ 554 |
Provision (Benefit) for Incom59
Provision (Benefit) for Income Taxes (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Provision (Benefit) for Income Taxes (Textual) | |||
Income tax rate foreign subsidiary percentage | 25.00% | 26.50% | |
Uniform tax rates, description | 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). | ||
General tax rate, description | The regular Israeli tax rate was 26.5% for Regular Entities and 16% or 9% for Preferred Enterprises (depending on the location of industry). | ||
Operating loss carry forward | $ 4,921 | ||
Operating loss carry forward, expiration date | Dec. 31, 2022 | ||
Valuation allowance net operating loss carry forward percentage | 100.00% | ||
Micronet Ltd [Member] | |||
Provision (Benefit) for Income Taxes (Textual) | |||
Tax rate for preferred enterprises percentage | 16.00% | 16.00% | |
Enertec [Member] | |||
Provision (Benefit) for Income Taxes (Textual) | |||
Tax rate for preferred enterprises percentage | 9.00% | 9.00% | |
Israel [Member] | |||
Provision (Benefit) for Income Taxes (Textual) | |||
General tax rate, description | According to such law, in 2017 the general tax rate will decrease by 1% and starting 2018 by 2%; so that the tax rate will be 24% in 2017 and 23% in 2018 and onwards. In addition, the tax rate that applies to Preferred Enterprises in preferred area will be decreased by 1.5% to 7.5% starting January 1, 2017. |
Related Parties (Details)
Related Parties (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | ||
Total | $ 475 | $ 490 |
Consulting fee paid to controlling shareholder [Member] | ||
Related Party Transaction [Line Items] | ||
Total | 386 | 383 |
Stock based compensation granted to controlling shareholder [Member] | ||
Related Party Transaction [Line Items] | ||
Total | $ 89 | $ 107 |
Related Parties (Details Textua
Related Parties (Details Textual) | Nov. 07, 2012USD ($) | Nov. 07, 2012ILS (₪) | Nov. 26, 2012USD ($) |
Related Parties (Textual) | |||
Description of agreement | 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. | 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. | |
Description of management and consulting services agreement | (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. | ||
Monthly management fees | $ 16 | ₪ 65 | $ 13 |
Shareholder's Equity (Details)
Shareholder's Equity (Details) | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Number Outstanding | 746,000 |
Options Exercisable, Number Exercisable | 646,000 |
Exercise Price One [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Number Outstanding | 20,000 |
Options Outstanding, Weighted Average Remaining Contractual Life | 6 years 6 months |
Options Exercisable, Number Exercisable | 20,000 |
Options Exercisable, Exercise Price | $ / shares | $ 4.3 |
Exercise Price Two [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Number Outstanding | 586,000 |
Options Outstanding, Weighted Average Remaining Contractual Life | 8 years |
Options Exercisable, Number Exercisable | 579,333 |
Options Exercisable, Exercise Price | $ / shares | $ 4.3 |
Exercise Price Three [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Number Outstanding | 140,000 |
Options Outstanding, Weighted Average Remaining Contractual Life | 8 years 6 months |
Options Exercisable, Number Exercisable | 46,667 |
Options Exercisable, Exercise Price | $ / shares | $ 4.3 |
Shareholder's Equity (Details 1
Shareholder's Equity (Details 1) - $ / shares | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Changes during the year: | ||
Number of Options outstanding at the beginning of year | 746,000 | 606,000 |
Number of Options, Granted | 140,000 | |
Number of Options, Exercised | ||
Number of Options, Forfeited | ||
Number of Options outstanding at end of year | 746,000 | 746,000 |
Number of Options exercisable at year-end | $ 4.3 | |
Number of Options exercisable at year-end | 646,000 | 397,334 |
Weighted Average Exercise Price, Options outstanding at the beginning of year | $ 4.30 | $ 4.3 |
Weighted Average Exercise Price, Granted | 4.3 | |
Weighted Average Exercise Price, Exercised | ||
Weighted Average Exercise Price, Forfeited | ||
Weighted Average Exercise Price, Options outstanding at end of year | 4.3 | 4.30 |
Weighted-average fair value of options granted during the year | $ 1.09 |
Shareholder's Equity (Details T
Shareholder's Equity (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | Apr. 30, 2016 | Apr. 30, 2013 | Jun. 30, 2016 | May 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Oct. 31, 2015 | Jul. 17, 2014 |
Shareholders Equity (Textual) | ||||||||
Expected dividend yield | 0.00% | |||||||
Expected volatility rate | 39.00% | |||||||
Risk-free interest rate | 1.90% | |||||||
Expected term | 6 years 6 months | |||||||
Underwritten public offering, shares | 1,863,000 | |||||||
Stock and warrants underwritten to purchase Common Stock | 931,500 | |||||||
Offering price per share | $ 5 | |||||||
Offering price per warrant | 0.01 | |||||||
Warrants exercise price | $ 6.25 | |||||||
Warrants expiration date | Apr. 29, 2018 | |||||||
Gross proceeds of over-allotment option | $ 9,324 | |||||||
Issuance costs | $ 1,921 | |||||||
Standby Equity Distribution Agreement [Member] | ||||||||
Shareholders Equity (Textual) | ||||||||
Issuance costs | $ 188 | |||||||
Sale of stock, description | We entered into a Standby Equity Distribution Agreement, or the SEDA, with YA II PV Ltd., or YA II, a Cayman Island exempt limited partnership and an affiliate of Yorkville Advisors Global, LLC, for the sale of up to $2.39 million of shares of the Company's common stock, par value $0.001 per share, over a three-year commitment period. Under the terms of the SEDA, the Company may from time to time, in its discretion, sell newly-issued shares of its common stock to YA II at a discount to market of 1.5%. | |||||||
Sale of stock, per share | $ 0.001 | |||||||
Aggregate of shares sold | 506,371 | |||||||
Aggregate sale amount | $ 768 | |||||||
2012 Stock Incentive Plan [Member] | ||||||||
Shareholders Equity (Textual) | ||||||||
Number of shares authorized | 1,000,000 | |||||||
Expiration term | 10 years | |||||||
Number of shares available for grant | 254,000 | |||||||
Stock based compensation | $ 268 | $ 306 | ||||||
2014 Stock Incentive Plan [Member] | ||||||||
Shareholders Equity (Textual) | ||||||||
Number of shares authorized | 100,000 | |||||||
Number of shares available for grant | 52,525 | |||||||
Restricted shares issued, Value | $ 26 | $ 30 | ||||||
Number of restricted shares issued | 13,500 | 8,975 |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | ||
Schedule of internal financial reporting system | |||
Revenues from external customers | $ 22,748 | $ 23,587 | |
Finance expenses, net | (672) | (610) | |
Consolidated loss before provision for income taxes | (7,642) | $ (3,131) | |
Defense and aerospace [Member] | |||
Schedule of internal financial reporting system | |||
Revenues from external customers | 9,464 | ||
Segment operating income (loss) | (983) | ||
Mobile resource management [Member] | |||
Schedule of internal financial reporting system | |||
Revenues from external customers | 13,284 | ||
Segment operating income (loss) | [1] | (4,527) | |
Consolidated [Member] | |||
Schedule of internal financial reporting system | |||
Revenues from external customers | 22,748 | ||
Segment operating income (loss) | (5,510) | ||
Non allocated expenses | (1,460) | ||
Finance expenses, net | (672) | ||
Consolidated loss before provision for income taxes | $ (7,642) | ||
[1] | Includes $926 of intangible assets amortization, derived from Micronet and Micronet Inc. acquisitions. |
Segment Reporting (Details 1)
Segment Reporting (Details 1) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Customer A [Member] | ||
Schedule of revenue from major customers | ||
Risk percentage | 34.00% | 30.00% |
Customer B [Member] | ||
Schedule of revenue from major customers | ||
Risk percentage | 13.00% | 11.00% |
Segment Reporting (Details 2)
Segment Reporting (Details 2) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue from customers in geographic regions | ||
Total | $ 22,748 | $ 23,587 |
United States [Member] | ||
Revenue from customers in geographic regions | ||
Total | 9,867 | 12,116 |
Israel [Member] | ||
Revenue from customers in geographic regions | ||
Total | 9,645 | 9,150 |
Other [Member] | ||
Revenue from customers in geographic regions | ||
Total | $ 3,236 | $ 2,321 |
Segment Reporting (Details Text
Segment Reporting (Details Textual) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016USD ($)Segments | Dec. 31, 2015USD ($) | |
Segment Reporting (Textual) | ||
Number of operating segments | Segments | 2 | |
Amortization of intangible assets | $ | $ 926 | $ 1,118 |
Major customers | 10% or more of total revenue. | 10% or more of total revenue. |
Commitments and Contingencies69
Commitments and Contingencies (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Year Ending December 31, | |
2,017 | $ 727 |
2,018 | 307 |
2,019 | 271 |
2,020 | $ 237 |
Commitments and Contingencies70
Commitments and Contingencies (Details Textual) ₪ in Millions | 12 Months Ended | |||||||
Dec. 31, 2016USD ($) | Dec. 31, 2016ILS (₪) | Dec. 31, 2015USD ($) | Dec. 31, 2015ILS (₪) | Dec. 31, 2014USD ($) | Dec. 31, 2014ILS (₪) | Sep. 30, 2013USD ($) | Sep. 30, 2013ILS (₪) | |
Commitments and Contingencies (Textual) | ||||||||
Percentage of grant | 40.00% | 40.00% | 40.00% | 40.00% | 30.00% | 30.00% | ||
Enertec Electronics [Member] | ||||||||
Commitments and Contingencies (Textual) | ||||||||
Covenants under its bank loan, description | Not less than 32.5% of total assets. | Not less than 32.5% of total assets. | ||||||
Chief Scientist [Member] | ||||||||
Commitments and Contingencies (Textual) | ||||||||
Grants amount | $ 1,300,000 | ₪ 5.1 | $ 1,500,000 | ₪ 5.5 | $ 1,500,000 | ₪ 5.5 | ||
Grant revenue | $ 1,400 | ₪ 5.6 | ||||||
Chief Scientist [Member] | Minimum [Member] | ||||||||
Commitments and Contingencies (Textual) | ||||||||
Royalty percentage | 3.00% | 3.00% | ||||||
Chief Scientist [Member] | Maximum [Member] | ||||||||
Commitments and Contingencies (Textual) | ||||||||
Royalty percentage | 3.50% | 3.50% | ||||||
Micronet Inc.'s [Member] | ||||||||
Commitments and Contingencies (Textual) | ||||||||
Lease term expires | Jun. 30, 2017 | Jun. 30, 2017 | ||||||
Annual rent expense | $ 200,000 | |||||||
Property management fee | $ 77,000 | |||||||
Covenants under its bank loan, description | (i) a cash and marketable securities 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 not met all of its bank covenants as of December 31, 2016. | (i) a cash and marketable securities 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 not met all of its bank covenants as of December 31, 2016. | ||||||
Enertec's properties [Member] | ||||||||
Commitments and Contingencies (Textual) | ||||||||
Lease term expires | Jun. 30, 2021 | Jun. 30, 2021 | ||||||
Annual rent expense | $ 237,000 | |||||||
Covenants under its bank loan, description | (1) its shareholder's equity according to its financial statements will not fall below NIS 17 million, and (2) its shareholder's equity will not be lower than 30% of the total liabilities on its balance sheet. | (1) its shareholder's equity according to its financial statements will not fall below NIS 17 million, and (2) its shareholder's equity will not be lower than 30% of the total liabilities on its balance sheet. | ||||||
Lease term description | The lease term expires in June 2021, subject to two five-year extension options and early termination provision after five years | The lease term expires in June 2021, subject to two five-year extension options and early termination provision after five years |
Supplementary Financial State71
Supplementary Financial Statements Information (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Other accounts receivable | ||
Prepaid expenses | $ 128 | $ 311 |
Government departments and agencies | 65 | 280 |
Deferred taxes | 580 | 482 |
Others | 126 | 512 |
Other accounts receivable | $ 899 | $ 1,585 |
Supplementary Financial State72
Supplementary Financial Statements Information (Details 1) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Other accounts payable | ||
Employees and wage-related liabilities | $ 1,188 | $ 1,188 |
Government departments and agencies | 409 | 345 |
Accrued expenses | 650 | 705 |
Other current liabilities | 136 | 246 |
Other accounts payable | $ 2,383 | $ 2,484 |
Supplementary Financial State73
Supplementary Financial Statements Information (Details 2) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Numerator: | ||
Amount for basic earnings per share | $ (5,807) | $ (2,467) |
Effect of dilutive instruments | ||
Amount for diluted earnings per share | $ (5,807) | $ (2,467) |
Denominator: | ||
Denominator for basic earnings per share - weighted average of shares | 5,966,622 | 5,861,630 |
Basic earnings per share attributed to Micronet Enertec stockholders | $ (0.97) | $ (0.42) |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] ₪ / shares in Units, $ in Thousands, ₪ in Millions | Mar. 15, 2017USD ($)shares | Feb. 09, 2017shares | Feb. 23, 2017ILS (₪)₪ / sharesshares | Feb. 22, 2017shares | Jan. 31, 2017USD ($)shares | Mar. 31, 2017 |
Micronet Ltd [Member] | ||||||
Subsequent Events (Textual) | ||||||
Issuance of shares, net, shares | 6,100,000 | |||||
Common stock price per share | ₪ / shares | ₪ 0.1 | |||||
Sale of common stock shares | 5,468,900 | |||||
Net proceeds from offering | ₪ | ₪ 9,844,020 | |||||
Standby Equity Distribution Agreement [Member] | ||||||
Subsequent Events (Textual) | ||||||
Issuance of shares, net, shares | 30,769 | 39,062 | 28,985 | |||
SEDA sale amount | $ | $ 130 | |||||
Percentage of shareholders | 100.00% | |||||
2014 Stock Incentive Plan [Member] | ||||||
Subsequent Events (Textual) | ||||||
Restricted shares, issued | 6,750 | |||||
Grant date based expense | $ | $ 26 |