Tingo (TIOG) 10-Q 20 May 19 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2019	May 14, 2019
Document and Entity Information [Abstract]
Entity Registrant Name	MICT, Inc.
Entity Central Index Key	0000854800
Trading Symbol	MICT
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Type	10-Q
Document Period End Date	Mar. 31, 2019
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2019
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Ex Transition Period	false
Entity Common Stock, Shares Outstanding		11,009,532

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 347	$ 2,174
Trade accounts receivable, net		1,010
Inventories		4,345
Prepaid expenses and other current assets	112
Other accounts receivable		339
Total current assets	459	7,868
Property and equipment, net	24	661
Intangible assets, net and others		434
Long-term deposit and prepaid expenses		703
Restricted cash escrow	477	477
Micronet Ltd. investment	1,711
Total long-term assets	2,212	2,275
Total assets	2,671	10,143
LIABILITIES AND EQUITY
Short term bank credit and current portion of long term bank loans	244	2,806
Short term credit from others and current portion of long term loans from others	1,734	3,004
Trade accounts payable	1	1,531
Other accounts payable	305	1,211
Total current liabilities	2,284	8,552
Long term escrow	477	477
Accrued severance pay, net	48	110
Total long term liabilities	525	587
Stockholders' Equity:
Preferred stock; $0.001 par value, 5,000,000 shares authorized, none issued and outstanding as of March 31, 2019
Common stock; $0.001 par value, 25,000,000 shares authorized, 10,734,232 and 9,342,088 shares issued and outstanding as of March 31, 2019 and December 31, 2018, respectively	11	9
Additional paid in capital	13,518	11,905
Accumulated other comprehensive (loss)		(117)
Accumulated loss	(13,667)	(12,757)
MICT, Inc. stockholders' equity	(138)	(960)
Non-controlling interests		1,964
Total equity	(138)	1,004
Total liabilities and equity	$ 2,671	$ 10,143

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2019	Dec. 31, 2018
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	10,734,232	9,342,088
Common stock, shares outstanding	10,734,232	9,342,088

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Income Statement [Abstract]
Revenues	$ 477	$ 5,980
Cost of revenues	846	4,258
Gross profit	(369)	1,722
Operating expenses:
Research and development	261	527
Selling and marketing	198	454
General and administrative	990	1,212
Amortization of intangible assets	20	222
Total operating expenses	1,469	2,415
Loss from operations	(1,838)	(693)
Equity loss
Net profit from loss of control	299
Financial (expenses) income, net	76	(392)
Loss before provision for income taxes	(1,463)	(1,085)
Taxes on income (benefit)	3
Net loss from continued operation	(1,466)	(1,085)
Net profit (loss) from discontinued operation		(111)
Total net loss	(1,466)	(974)
Net loss attributable to non-controlling interests	(556)	(124)
Net loss attributable to MICT, Inc.	$ (910)	$ (850)
Basic and diluted loss per share from continued operation	$ (0.09)	$ (0.11)
Basic and diluted loss per share from discontinued operation		(0.01)
Weighted average common shares outstanding:
Basic	$ 9,707,831	$ 8,867,830

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Statement of Comprehensive Income [Abstract]
Net loss	$ (1,466)	$ (974)
Other comprehensive loss, net of tax:
Currency translation adjustment	(144)	133
Total comprehensive loss	(1,610)	(841)
Comprehensive loss attributable to non-controlling interests	(465)	(432)
Comprehensive loss attributable to MICT, Inc.	$ (1,145)	$ (409)

Statements of Changes In Equity

Statements of Changes In Equity - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income	Non-controlling Interest	Total
Balance at Dec. 31, 2017	$ 8	$ 10,881	$ (10,147)	$ (363)	$ 5,595	$ 5,974
Balance, Shares at Dec. 31, 2017	8,645,656
Shares issued to service providers and employees		51				51
Shares issued to service providers and employees, shares	42,500
Issuance of warrants		28				28
Comprehensive loss			(851)	517	(506)	(840)
Stock based compensation in subsidiary		(74)			74	0
Issuance of shares, net	$ 1	478				479
Issuance of shares, net, shares	456,309
Balance at Mar. 31, 2018	$ 9	11,364	(10,998)	154	5,163	5,692
Balance, Shares at Mar. 31, 2018	9,144,465
Balance at Dec. 31, 2018						1,004
Shares issued to service providers and employees		175				175
Shares issued to service providers and employees, shares	145,300
Stock based compensation		22				22
Comprehensive loss			(910)	(306)	(393)	(1,609)
Stock based compensation in subsidiary		70			(70)	0
Loss of control of subsidiary				423	(1,501)	(1,078)
Issuance of shares, net	$ 2	1,346				1,348
Issuance of shares, net, shares	1,246,817
Balance at Mar. 31, 2019	$ 11	$ 13,518	$ (13,667)	$ 0	$ 0	$ (138)
Balance, Shares at Mar. 31, 2019	10,734,232

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss from continued operations	$ (1,466)	$ (1,085)
Adjustments to reconcile net income to net cash provided by operating activities:
Profit from loss of control	(299)
Depreciation and amortization	85	308
Change in fair value of derivatives, net		(1)
Accrued interest and exchange rate differences on bank loans	102	(51)
Extinguishment of loan costs and commissions		360
Accrued interest and exchange rate differences on loans from others	76	112
Stock-based compensation	127	125
Decrease in trade accounts receivable, net	672	310
Decrease (increase) in inventories	348	(190)
Decrease in accrued severance pay, net	(8)	(3)
Increase in other accounts receivable	(294)	199
Decrease in trade accounts payable	(394)	(580)
Decrease in other accounts payable	(22)	(910)
Net cash used in operating activities	(1,073)	(1,406)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment	(57)	(72)
Deconsolidation of Micronet Ltd.	(608)
Net cash provided by (used in) investing activities	(665)	(72)
CASH FLOWS FROM FINANCING ACTIVITIES:
Short term bank credit	(101)	1,139
Receipt of loans from others, net		4,971
Extinguishment of loan costs		(360)
Repayment of loans from others		(3,538)
Issuance of shares, net		479
Issuance of warrants net		29
Net cash provided by financing activities	(101)	2,720
NET CASH INCREASE IN CASH AND CASH EQUIVALENTS	(1,839)	1,242
Cash, Cash Equivalents and restricted cash at beginning of the period	2,174	2,398
TRANSLATION ADJUSTMENT ON CASH AND CASH EQUIVALENTS	12	(24)
Cash, Cash Equivalents and restricted cash at end of the period	347	3,616
Amount paid during the period for:
Interest	116	294
Taxes	$ 46	$ 4

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Mar. 13, 2019	Feb. 21, 2019	Feb. 21, 2019	Mar. 31, 2019	Feb. 24, 2019	Jul. 05, 2018
Statement of Cash Flows [Abstract]
Working capital other than cash					$ (2,301)
Finance lease					359
Accrued severance pay, net					56
Translation reserve					(417)
Micronet Ltd investment in fair value					1,711
Non controlling interests					1,499
Net profit from loss of control					(299)
Cash					$ 608
Shares of its common stock	996,817	250,000	250,000
Conversion value	$ 1,000	$ 250	$ 250
Conversion price	$ 1.10	$ 1	$ 1	$ 1.10		$ 1.1158

Description of Business

Description of Business	3 Months Ended
	Mar. 31, 2019
Description of Business [Abstract]
DESCRIPTION OF BUSINESS	NOTE 1 — DESCRIPTION OF BUSINESS Overview MICT Inc., or we or the Company, was formed as a Delaware corporation on January 31, 2002. On March 14, 2013, the Company changed its corporate name from Lapis Technologies, Inc. to Micronet Enertec Technologies, Inc. On July 13, 2018, following the sale of its former subsidiary Enertec Systems Ltd., the Company changed the Company name from Micronet Enertec Technologies, Inc. to MICT, Inc. Our shares have been listed for trade on the Nasdaq Capital Market, or Nasdaq, since April 29, 2013. The Company’s business relates to its ownership interest in its Israel-based subsidiary, Micronet Ltd., or Micronet, in which the Company previously held a majority ownership interest that has since been diluted to a minority ownership interest. Micronet operates in the growing commercial Mobile Resource Management, or 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. As of December 31, 2018, we held 49.89% of Micronet’s issued and outstanding shares, and together with an irrevocable proxy in our benefit from Mr. David Lucatz, our President and Chief Executive Officer, we held 50.07% of the voting interest in Micronet as of such date. On February 24, 2019, Micronet closed a public equity offering on the Tel Aviv Stock Exchange, or the TASE. As a result of Micronet’s offering, our ownership interest in Micronet was diluted from 49.89% to 33.88%. On February 24, 2019, Mr. David Lucatz, our President and Chief Executive Officer, executed an irrevocable proxy assigning his voting power over 1,980,000 shares of Micronet for our benefit. As a result, our current voting interest in Micronet stands at 39.53% of the issued and outstanding shares of Micronet. The decrease in the Company’s voting interest in Micronet resulted in the deconsolidation of Micronet’s operating results from our financial statements as of February 24, 2019. Therefore, commencing from February 24, 2019, the Company account for the investment in Micronet in accordance with the equity method. As a result of the equity method, the Company recognized a net profit of $299 from the deconsolidation of Micronet Ltd. On December 18, 2018, the Company, Global Fintech Holdings Ltd., a British Virgin Islands corporation, or BVI Pubco, GFH Merger Subsidiary, Inc., a Delaware corporation and a wholly-owned subsidiary of BVI Pubco, or Merger Sub, BNN Technology PLC, a United Kingdom Private limited company, or BNN, Brookfield Interactive (Hong Kong) Limited, a Hong Kong company and a subsidiary of BNN, or BI China, ParagonEx LTD, a British Virgin Islands company, or ParagonEx, certain holders of ParagonEx’s outstanding ordinary shares and a trustee thereof, and Mark Gershinson, in the capacity as the representative of the ParagonEx sellers, entered into an Acquisition Agreement, or the Acquisition Agreement, pursuant to which, among other things, subject to the satisfaction or waiver of the conditions set forth in the Acquisition Agreement, Merger Sub will merge with and into the Company, as a result of which each outstanding share of the Company’s common stock and warrant to purchase the same shall be cancelled in exchange for the right of the holders thereof to receive 0.93 substantially equivalent securities of BVI Pubco, after which BVI Pubco will acquire (i) all of the issued and outstanding securities of BI China in exchange for newly issued ordinary shares of BVI Pubco and (ii) all of the issued and outstanding ordinary shares of ParagonEx for a combination of cash in the amount equal to approximately $25,000 (the majority of which was raised in a private placement by BVI Pubco), unsecured promissory notes and newly issued ordinary shares of BVI Pubco, or collectively, the Acquisitions. Liquidity During the period ended March 31, 2019, the Company had a total comprehensive loss of $1,100 and incurred a $1,000 loss from operating cash flow. As of March 31, 2019, the Company incurred accumulated losses of approximately $13,600. Based on the Company’s projected cash flows and the Company’s cash balance as of March 31, 2019, the Company believes that it has sufficient resources to enable it to continue advancing its activities for a period of at least 12 months from the date of issuance of these financial statements. The Company intends to satisfy its liquidity through the sale of its securities, either in public or private transactions, through the closing of the transactions contemplated by the Acquisition Agreement or pursuant to a break up fee, if applicable, that the Company may be entitled to receive pursuant to the terms of the Acquisition Agreement. In 2019, the Company expects to pay off all of its bank loans in the amount of $244 and the loans (as further detailed below) with YA II in the aggregate principal amount of $1,750 as part of the closing of the transactions contemplated by the Acquisition Agreement. The Company filed a Form S-3 registration statement (File No. 333-219596) under the Securities Act of 1933, as amended, with the SEC using a “shelf” registration process, which was declared effective on July 31, 2017. Under this shelf registration process, the Company may, from time to time, sell common stock, warrants or units in one or more offerings up to a total dollar amount of $30,000, subject to certain limitations as set forth in General Instruction I.B.6. of Form S-3, pursuant to which the Company have sold approximately $1,000 of our securities to date.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2019
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited condensed consolidated financial statements and condensed footnotes have been prepared in accordance with the applicable rules and regulations of the Securities and Exchange Commission, or the SEC, regarding interim financial reporting. Accordingly, they do not include all of the information and footnotes required by the accounting principles generally accepted in the United States of America, or U.S. GAAP, for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring items) considered necessary for fair statement of results for the interim periods presented have been included. The results of operations for the three months ended March 31, 2019 are not necessarily indicative of the results to be expected for the full year 2019 or for other interim periods or for future years. The consolidated balance sheet as of March 31, 2019 is derived from audited financial statements as of that date; however, it does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. Furthermore, from February 24, 2019 the Company will account for the investment in Micronet in accordance with the equity method, and therefore, the results of operations for the three months ended March 31, 2019 are not necessarily indicative of the results to be expected for the full year 2019 or for other interim periods or for future years. Principles of Consolidation The accompanying financial statements are prepared in accordance with U.S. GAAP.

Loans from Others

Loans from Others	3 Months Ended
	Mar. 31, 2019
Loans from Others [Abstract]
LOANS FROM OTHERS	Note 3 — Loans from others On March 29, 2018, the Company and MICT Telematics executed and closed on a securities purchase agreement with YA II whereby the Company issued and sold to YA II (1) certain Series A Convertible Debentures in the aggregate principal aggregate amount of $3,200, or the Series A Debentures, and (2) a Series B Convertible Debenture in the principal aggregate amount of $1,800, or the Series B Debenture. The Series A Debentures were issued in exchange for the cancellation and retirement of certain promissory notes issued by the Company to YA II on October 28, 2016, December 22, 2016, June 8, 2017 and August 22, 2017, or collectively, the Prior Notes, with a total outstanding aggregate principal amount of $3,200. The Series B Debenture was issued and sold for aggregate gross cash proceeds of $1,800. In addition, pursuant to the terms of the securities purchase agreement, the Company agreed to issue to YA II a warrant to purchase up to 375,000 shares of the Company’s common stock at a purchase price of $2.00 per share, a warrant to purchase up to 200,000 shares of the Company’s common stock at a purchase price of $3.00 per share and a warrant to purchase up to 112,500 shares of the Company’s common stock at a purchase price of $4.00 per share. In conjunction with the issuance of the Series A Debentures and the Series B Debentures, a total of $273 in fees and expenses were deducted from the aggregate gross proceeds and paid to YA II. The Company evaluated if those changes would be deemed trouble debt restructuring, or TDR, and concluded that it does not meet TDR requirements. The Company then evaluated if the modifications to the terms of the Prior Notes from YA II in accordance with the guidance in FASB ASC Topic 470-50-40 “Derecognition,” and concluded that the Series A Debentures and Series B Debenture are substantially different from the Prior Notes. Therefore, these modifications were accounted for as an extinguishment of the existing debt. As a result, the Company recorded an expense of $334. In addition, in June 2018, the Company made aggregate payments of $875 towards the repayment of the Series B Debentures. On July 3, 2018, the Company made a payment of $1,000 towards the repayment of the Series B Debentures. In addition, on July 5, 2018, a payment of $125 towards the repayment of the Series A Debentures was made in shares of the Company’s common stock at an applicable conversion price of $1.1158 per share pursuant to the terms of the Series A Debentures. Subject to, and upon closing of the Acquisition Agreement, BNN and the other counterparties have insisted that the Company modify the terms of the 1,187,500 warrants issued to YA II to eliminate or modify certain provisions such that all of the warrants will be exchanged for new warrants, or the New Warrants, which New Warrants shall be exercisable at $2.00 per share of BVI Pubco common stock (subject to adjustment as provided herein and therein) and shall expire on June 30, 2022. Subject to, and upon closing of the transactions contemplated by the Acquisition Agreement, securities issued in connection with the payment of the indebtedness owing to YA II, will include, but not be limited to, the amortization of such indebtedness and the conversion of such indebtedness into up to 1,000,000 shares of the Company’s common stock at a price of not less than $1.10 per share and up to 250,000 shares of Company’s common stock at a price of not less than $1.00 per share. As of February 21, 2019, the Company issued to YA II 250,000 shares of its common stock as part of a conversion of $250 of the Series A Debenture at a conversion price of $1.00 per share. On March 13, 2019, the Company issued an additional 996,817 shares of its common stock as part of a conversion of $1,000 of the Series A Debenture at a conversion price of $1.10 per share.

Discontinued Operation

Discontinued Operation	3 Months Ended
	Mar. 31, 2019
Discontinued Operations and Disposal Groups [Abstract]
DISCONTINUED OPERATION	NOTE 4 — DISCONTINUED OPERATION On December 31, 2017, the Company, Enertec Systems 2001 Ltd., or Enertec, previously our wholly owned subsidiary, and Enertec Management Ltd., entered into a Share Purchase Agreement, or the Share Purchase Agreement, with Coolisys Technologies Inc., or Coolisys, a subsidiary of DPW Holdings, Inc., or DPW, pursuant to which the Company agreed to sell the entire share capital of Enertec to Coolisys. As consideration for the sale of Enertec's entire share capital, Coolisys agreed to pay, at the closing of the transaction, a purchase price of $5,250 as well as assume up to $4,000 of Enertec debt. Enertec met the definition of a component as defined by Accounting Standards Codification, or ASC, Topic 205. The Company believes the sale represented a strategic shift in its business. Accordingly, its assets and liabilities were classified as held for sale and the results of operations in the statement of operations and prior periods' results have been reclassified as a discontinued operation. On May 22, 2018, the Company closed on the sale, or the Closing, of all of the outstanding equity of Enertec pursuant to the Share Purchase Agreement. At the Closing, the Company received aggregate gross proceeds of approximately $4,700, of which 10% will be held in escrow for up to 14 months after the Closing to satisfy certain potential indemnification claims. Therefore, the Company has recorded such escrowed amount on its balance sheet as restricted cash and a liability. The final consideration amount was adjusted, pursuant to the terms of the Share Purchase Agreement, as a result of adjustments relating to certain Enertec debts at the Closing. In addition, Coolisys also assumed approximately $4,000 of Enertec's debt. The Company's capital gain from the sale of Enertec, based on the Company's balance sheet at the closing date was approximately $6,800. The following is the composition from discontinued operation through March 31, 2019 and December 31, 2018: Three months ended 2019 2018 Revenues $ - 2,578 Cost of revenues - 1,931 Gross profit - 647 Operating expenses: Research and development - 58 Selling and marketing - 119 General and administrative - 260 Total operating expenses - 437 Profit (loss) from operations - 210 Finance income (expense), net - 99 Profit (loss) before provision for income taxes - 111 Taxes on income - Net profit (loss) - 111 Three months ended 2019 2018 Net cash provided by (used in) operating activities $ - 255 Net cash provided by (used in) investing activities - (10 ) Net cash provided by (used in) financing activities - (266 ) NET CASH INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH - (21 ) CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF THE PERIOD - 4,503 TRANSLATION ADJUSTMENT OF CASH AND CASH EQUIVALENTS CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF THE PERIOD $ - 4,482

Loss of Control of Subsidiary

Loss of Control of Subsidiary	3 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
LOSS OF CONTROL OF SUBSIDIARY	NOTE 5 — LOSS OF CONTROL OF SUBSIDIARY As of December 31, 2018, we held 49.89% of Micronet's issued and outstanding shares, and together with an irrevocable proxy in our benefit from Mr. David Lucatz, our President and Chief Executive Officer, we held 50.07% of the voting interest in Micronet as of such date. On February 24, 2019, Micronet closed a public equity offering on the TASE. As a result of Micronet's offering, our ownership interest in Micronet was diluted from 49.89% to 33.88%. On February 24, 2019, Mr. David Lucatz, our President and Chief Executive Officer, executed an irrevocable proxy assigning his voting power over 1,980,000 shares of Micronet for our benefit. As a result, our current voting interest in Micronet stands at 39.53% of the issued and outstanding shares of Micronet. The decrease in the Company's voting interest in Micronet resulted in the loss of control of Micronet. As a result, effective as of February 24, 2019, we no longer include Micronet's operating results in our financial statements. Therefore, commencing from February 24, 2019, the Company will account for the investment in Micronet in accordance with the equity method. While Micronet is a publicly traded company in Israel, its shareholder base is widely spread and we continue to be Micronet's largest shareholder, controlling 39.53% of its issued and outstanding shares. We believe that since most items that may require shareholder approval required majority consent, we exert a high level of influence over such voting matters which may include the appointment and removal of directors. In that regard, to date, we have appointed a majority of the directors of Micronet's board of directors. Based on the above, although we are unable to fully consolidate Micronet's financial statements according to U.S. GAAP, we also do not consider Micronet to be a discontinued operation since we consider ourselves in effective control of Micronet and the raising of equity by Micronet that diluted our interests was done in order to continue its operations. The following is the composition from Micronet's operation for the three months ended March 31, 2019 and March 31, 2018, respectively: Three months ended March 31, 2019 2018 Revenues $ 1,550 $ 5,980 Gross profit (loss) (6 ) 1,722 Income (loss) from operations (1,041 ) (366 ) Net profit (loss) $ (1,108 ) (247 )

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2019
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements and condensed footnotes have been prepared in accordance with the applicable rules and regulations of the Securities and Exchange Commission, or the SEC, regarding interim financial reporting. Accordingly, they do not include all of the information and footnotes required by the accounting principles generally accepted in the United States of America, or U.S. GAAP, for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring items) considered necessary for fair statement of results for the interim periods presented have been included. The results of operations for the three months ended March 31, 2019 are not necessarily indicative of the results to be expected for the full year 2019 or for other interim periods or for future years. The consolidated balance sheet as of March 31, 2019 is derived from audited financial statements as of that date; however, it does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2018. Furthermore, from February 24, 2019 the Company will account for the investment in Micronet in accordance with the equity method, and therefore, the results of operations for the three months ended March 31, 2019 are not necessarily indicative of the results to be expected for the full year 2019 or for other interim periods or for future years.
Principles of Consolidation	Principles of Consolidation The accompanying financial statements are prepared in accordance with U.S. GAAP.

Discontinued Operation (Tables)

Discontinued Operation (Tables)	3 Months Ended
	Mar. 31, 2019
Discontinued Operations and Disposal Groups [Abstract]
Schedule of composition from discontinued operation	Three months ended 2019 2018 Revenues $ - 2,578 Cost of revenues - 1,931 Gross profit - 647 Operating expenses: Research and development - 58 Selling and marketing - 119 General and administrative - 260 Total operating expenses - 437 Profit (loss) from operations - 210 Finance income (expense), net - 99 Profit (loss) before provision for income taxes - 111 Taxes on income - Net profit (loss) - 111 Three months ended 2019 2018 Net cash provided by (used in) operating activities $ - 255 Net cash provided by (used in) investing activities - (10 ) Net cash provided by (used in) financing activities - (266 ) NET CASH INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH - (21 ) CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF THE PERIOD - 4,503 TRANSLATION ADJUSTMENT OF CASH AND CASH EQUIVALENTS CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF THE PERIOD $ - 4,482

Loss of Control of Subsidiary (

Loss of Control of Subsidiary (Tables)	3 Months Ended
	Mar. 31, 2019
Micronet [Member]
Schedule of discontinued operation	Three months ended March 31, 2019 2018 Revenues $ 1,550 $ 5,980 Gross profit (loss) (6 ) 1,722 Income (loss) from operations (1,041 ) (366 ) Net profit (loss) $ (1,108 ) (247 )

Description of Business (Detail

Description of Business (Details) - USD ($) $ in Thousands	Jul. 03, 2018	Feb. 24, 2019	Dec. 18, 2018	Jul. 31, 2017	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Description of Business (Textual)
Ordinary shares for aggregate gross proceeds					$ 1,348	$ 479
Irrevocable proxy assigning his voting power		1,980,000
Voting interest of Micronet increased		39.53%
Losses					(910)	(850)
Acquisitions description	The other counterparties have insisted that the Company modify the terms of the 1,187,500 warrants issued to YA II to eliminate or modify certain provisions such that all of the warrants will be exchanged for new warrants, or the New Warrants, which New Warrants shall be exercisable at $2.00 per share of BVI Pubco common stock (subject to adjustment as provided herein and therein) and shall expire on June 30, 2022. Subject to, and upon closing of the transactions contemplated by the Acquisition Agreement, securities issued in connection with the payment of the indebtedness owing to YA II, will include, but not be limited to, the amortization of such indebtedness and the conversion of such indebtedness into up to 1,000,000 shares of the Company's common stock at a price of not less than $1.10 per share and up to 250,000 shares of Company's common stock at a price of not less than $1.00 per share.
Net profit (loss) from deconsolidation of Micronet Ltd.					299
Total comprehensive loss					(1,610)	(841)
Net cash used in operating activities					(1,073)	$ (1,406)
Accumulated losses					13,600
Pay off all to the bank loans					244
Aggregate principal amount					$ 1,750
Total dollar amount				$ 30,000
Proceeds from sale of securities				$ 1,000
Voting interest							50.07%
Percentage of shares issued and outstanding							4989.00%
BVI Pubco [Member]
Description of Business (Textual)
Acquisitions description			Merger Sub will merge with and into the Company, as a result of which each outstanding share of the Company's common stock and warrant to purchase the same shall be cancelled in exchange for the right of the holders thereof to receive 0.93 substantially equivalent securities of BVI Pubco, after which BVI Pubco will acquire (i) all of the issued and outstanding securities of BI China in exchange for newly issued ordinary shares of BVI Pubco and (ii) all of the issued and outstanding ordinary shares of ParagonEx for a combination of cash in the amount equal to approximately $25,000 (the majority of which was raised in a private placement by BVI Pubco), unsecured promissory notes and newly issued ordinary shares of BVI Pubco, or collectively, the Acquisitions.
Maximum [Member]
Description of Business (Textual)
Ownership interest in Micronet, diluted		49.89%
Minimum [Member]
Description of Business (Textual)
Ownership interest in Micronet, diluted		33.88%

Loans from Others (Details)

Loans from Others (Details) - USD ($) $ / shares in Units, $ in Thousands	Mar. 13, 2019	Jul. 05, 2018	Jul. 03, 2018	Feb. 21, 2019	Feb. 21, 2019	Jun. 30, 2018	Mar. 29, 2018	Mar. 31, 2019
Loans from Others (Textual)
Fees and expenses							$ 273	$ 334
Repayment of debentures			$ 1,000			$ 875
Conversion price per share	$ 1.10	$ 1.1158		$ 1	$ 1			$ 1.10
Payment of debt		$ 125
Acquisitions description			The other counterparties have insisted that the Company modify the terms of the 1,187,500 warrants issued to YA II to eliminate or modify certain provisions such that all of the warrants will be exchanged for new warrants, or the New Warrants, which New Warrants shall be exercisable at $2.00 per share of BVI Pubco common stock (subject to adjustment as provided herein and therein) and shall expire on June 30, 2022. Subject to, and upon closing of the transactions contemplated by the Acquisition Agreement, securities issued in connection with the payment of the indebtedness owing to YA II, will include, but not be limited to, the amortization of such indebtedness and the conversion of such indebtedness into up to 1,000,000 shares of the Company's common stock at a price of not less than $1.10 per share and up to 250,000 shares of Company's common stock at a price of not less than $1.00 per share.
Issued to shares of common stock converted	996,817			250,000	250,000
Conversion amount	$ 1,000			$ 250	$ 250
Securities Purchase Agreement [Member]
Loans from Others (Textual)
Securities purchase agreement , description							The Company and MICT Telematics executed and closed on a securities purchase agreement with YA II whereby the Company issued and sold to YA II (1) certain Series A Convertible Debentures in the aggregate principal aggregate amount of $3,200, or the Series A Debentures, and (2) a Series B Convertible Debenture in the principal aggregate amount of $1,800, or the Series B Debenture. The Series A Debentures were issued in exchange for the cancellation and retirement of certain promissory notes issued by the Company to YA II on October 28, 2016, December 22, 2016, June 8, 2017 and August 22, 2017, or collectively, the Prior Notes, with a total outstanding aggregate principal amount of $3,200. The Series B Debenture was issued and sold for aggregate gross cash proceeds of $1,800.
Securities Purchase Agreement [Member] | YA II [Member]
Loans from Others (Textual)
Securities purchase agreement , description							Pursuant to the terms of the securities purchase agreement, the Company agreed to issue to YA II a warrant to purchase up to 375,000 shares of the Company's common stock at a purchase price of $2.00 per share, a warrant to purchase up to 200,000 shares of the Company's common stock at a purchase price of $3.00 per share and a warrant to purchase up to 112,500 shares of the Company's common stock at a purchase price of $4.00 per share.

Discontinued Operation (Details

Discontinued Operation (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Discontinued Operations and Disposal Groups [Abstract]
Revenues		$ 2,578
Cost of revenues		1,931
Gross profit		647
Operating expenses:
Research and development		58
Selling and marketing		119
General and administrative		260
Total operating expenses		437
Profit (loss) from operations		210
Finance income (expense), net		99
Profit (loss) before provision for income taxes		111
Taxes on income
Net profit (loss)		$ 111

Discontinued Operation (Detai_2

Discontinued Operation (Details 1) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Discontinued Operations and Disposal Groups [Abstract]
Net cash provided by (used in) operating activities		$ 255
Net cash provided by (used in) investing activities		(10)
Net cash provided by (used in) financing activities		(266)
NET CASH INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH		(21)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF THE PERIOD		4,503
TRANSLATION ADJUSTMENT OF CASH AND CASH EQUIVALENTS
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF THE PERIOD		$ 4,482

Discontinued Operation (Detai_3

Discontinued Operation (Details Textual) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2017
Discontinued Operation (Textual)
Purchase price		$ 5,250
Enertec debt	$ 4,000
Aggregate gross proceeds	$ 4,700
Percentage of held in escrow	10.00%
Capital gain from the sale of enertec	$ 6,800
Coolisys [Member]
Discontinued Operation (Textual)
Enertec debt		$ 4,000

Loss of Control of Subsidiary_2

Loss of Control of Subsidiary (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Revenues		$ 2,578
Gross profit (loss)		647
Income (loss) from operations		437
Net profit (loss)		111
Micronet [Member]
Revenues	1,550	5,980
Gross profit (loss)	(6)	1,722
Income (loss) from operations	(1,041)	(366)
Net profit (loss)	$ (1,108)	$ (247)

Loss of Control of Subsidiary_3

Loss of Control of Subsidiary (Details Textual) - shares	1 Months Ended	12 Months Ended
	Feb. 24, 2019	Dec. 31, 2018
Unconsolidated Subsidiary (Textual)
Irrevocable proxy assigning his voting power	1,980,000
Voting interest of Micronet increased	39.53%
Percentage of shares issued and outstanding		4989.00%
Micronet [Member]
Unconsolidated Subsidiary (Textual)
Voting interest of Micronet increased		50.07%
Ownership interest in Micronet, diluted		49.89%
Percentage of shares issued and outstanding		39.53%
Minimum [Member]
Unconsolidated Subsidiary (Textual)
Ownership interest in Micronet, diluted	33.88%
Maximum [Member]
Unconsolidated Subsidiary (Textual)
Ownership interest in Micronet, diluted	49.89%