Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | May 10, 2020 | |
Document And Entity Information | ||
Entity Registrant Name | ACORN ENERGY, INC. | |
Entity Central Index Key | 0000880984 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2020 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business Flag | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 39,687,589 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2020 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 1,416 | $ 1,247 |
Accounts receivable, net | 528 | 962 |
Inventory, net | 309 | 291 |
Deferred charges | 781 | 741 |
Other current assets | 136 | 189 |
Total current assets | 3,170 | 3,430 |
Property and equipment, net | 263 | 189 |
Right-of-use assets, net | 564 | 587 |
Other assets | 711 | 778 |
Total assets | 4,708 | 4,984 |
Current liabilities: | ||
Short-term credit | 139 | 136 |
Accounts payable | 250 | 197 |
Accrued expenses | 76 | 136 |
Deferred revenue | 3,093 | 3,004 |
Current operating lease liabilities | 55 | 53 |
Other current liabilities | 86 | 68 |
Total current liabilities | 3,699 | 3,594 |
Non-current liabilities: | ||
Deferred revenue | 1,393 | 1,491 |
Noncurrent operating lease liabilities | 518 | 542 |
Other long-term liabilities | 3 | 2 |
Total long-term liabilities | 1,914 | 2,035 |
Commitments and contingencies | ||
Deficit: | ||
Acorn Energy, Inc. shareholders Common stock - $0.01 par value per share: Authorized - 42,000,000 shares; Issued - 39,687,589 and 39,591,339 shares at March 31, 2020 and December 31, 2019, respectively | 397 | 396 |
Additional paid-in capital | 101,679 | 101,655 |
Warrants | 1,021 | 1,021 |
Accumulated deficit | (100,965) | (100,682) |
Treasury stock, at cost - 801,920 shares at March 31, 2020 and December 31, 2019 | (3,036) | (3,036) |
Total Acorn Energy, Inc. shareholders' deficit | (904) | (646) |
Non-controlling interests | (1) | 1 |
Total deficit | (905) | (645) |
Total liabilities and deficit | $ 4,708 | $ 4,984 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 42,000,000 | 42,000,000 |
Common stock, shares issued | 39,687,589 | 39,591,339 |
Treasury stock, shares | 801,920 | 801,920 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue | $ 1,338 | $ 1,327 |
Gross profit | 922 | 821 |
Operating expenses: | ||
Research and development expense | 155 | 144 |
Selling, general and administrative expense | 1,041 | 944 |
Total operating expenses | 1,196 | 1,088 |
Operating loss | (274) | (267) |
Finance (expense) income, net | (10) | 6 |
Loss before income taxes | (284) | (261) |
Income tax expense | ||
Net loss | (284) | (261) |
Non-controlling interest share of net loss | 1 | 24 |
Net loss attributable to Acorn Energy, Inc. shareholders | $ (283) | $ (237) |
Basic and diluted net loss per share attributable to Acorn Energy, Inc. shareholders: | ||
Total attributable to Acorn Energy, Inc. shareholders | $ (0.01) | $ (0.01) |
Weighted average number of shares outstanding attributable to Acorn Energy, Inc. shareholders - basic and diluted | 39,631,000 | 29,556,000 |
Products and Services [Member] | ||
Cost of sales | $ 416 | $ 476 |
Other [Member] | ||
Cost of sales | $ 30 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Deficit (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-In Capital [Member] | Warrants [Member] | Accumulated Deficit [Member] | Treasury Stock [Member] | Total Acorn Energy, Inc. Shareholders' Deficit [Member] | Non-Controlling Interests [Member] | Total |
Balances at Dec. 31, 2018 | $ 296 | $ 100,348 | $ 1,118 | $ (100,064) | $ (3,036) | $ (1,338) | $ 108 | $ (1,230) |
Balances, shares at Dec. 31, 2018 | 29,556,000 | 802,000 | ||||||
Net loss | (237) | (237) | (24) | (261) | ||||
Accrued dividend in OmniMetrix preferred shares | (20) | (20) | ||||||
Stock option compensation | 6 | 6 | 6 | |||||
Balances at Mar. 31, 2019 | $ 296 | 100,354 | 1,118 | (100,301) | $ (3,036) | (1,569) | 64 | (1,505) |
Balances, shares at Mar. 31, 2019 | 29,556,000 | 802,000 | ||||||
Balances at Dec. 31, 2019 | $ 396 | 101,655 | 1,021 | (100,682) | $ (3,036) | (646) | 1 | (645) |
Balances, shares at Dec. 31, 2019 | 39,591,000 | 802,000 | ||||||
Net loss | (283) | (283) | (1) | (284) | ||||
Accrued dividend in OmniMetrix preferred shares | (1) | (1) | ||||||
Proceeds from stock option exercise | $ 1 | 18 | 19 | $ 19 | ||||
Proceeds from stock option exercise, shares | 96,000 | 96,250 | ||||||
Stock option compensation | 6 | 6 | $ 6 | |||||
Balances at Mar. 31, 2020 | $ 397 | $ 101,679 | $ 1,021 | $ (100,965) | $ (3,036) | $ (904) | $ (1) | $ (905) |
Balances, shares at Mar. 31, 2020 | 39,687,000 | 802,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaduited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows provided by (used in) operating activities: | ||
Net loss | $ (284) | $ (261) |
Depreciation and amortization | 16 | 27 |
Non-cash lease expense | 29 | |
Stock-based compensation | 6 | 6 |
Change in operating assets and liabilities: | ||
Decrease (increase) in accounts receivable | 434 | (25) |
Increase in inventory | (18) | (105) |
Decrease in deferred charges | 27 | 73 |
Decrease in other current assets and other assets | 53 | 28 |
Decrease in accounts payable and accrued expenses | (7) | (69) |
Decrease in deferred revenue | (9) | (10) |
Decrease in operating lease liability | (28) | |
Increase in other current liabilities and non-current liabilities | 18 | 11 |
Net cash provided by (used in) operating activities | 237 | (325) |
Cash flows used in investing activities: | ||
Purchases of software | (87) | |
Payments made for patent filings | (3) | |
Net cash used in investing activities | (90) | |
Cash flows provided by financing activities: | ||
Short-term credit, net | 3 | 140 |
Stock option exercise proceeds | 19 | |
Net cash provided by financing activities | 22 | 140 |
Net increase (decrease)in cash, cash equivalents and restricted cash | 169 | (185) |
Cash, cash equivalents and restricted cash at the beginning of the year | 1,247 | 1,263 |
Cash, cash equivalents and restricted cash at the end of the period | 1,416 | 1,078 |
Cash, cash equivalents and restricted cash consist of the following: End of period | ||
Cash and cash equivalents | 1,416 | 779 |
Restricted cash | 299 | |
Cash and cash equivalents End of period | 1,416 | 1,078 |
Cash, cash equivalents and restricted cash consist of the following: Beginning of period | ||
Cash and cash equivalents | 1,247 | 973 |
Restricted cash | 290 | |
Cash and cash equivalents Beginning of period | 1,247 | 1,263 |
Cash paid during the year for: | ||
Interest | 7 | 1 |
Non-cash investing and financing activities: | ||
Purchase of equipment under installment agreement | 7 | |
Accrued preferred dividends to former Acorn director and/or former Omnimetrix CEO | $ 1 | $ 20 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | NOTE 1— BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements of Acorn Energy, Inc. and its subsidiaries (the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete consolidated financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three-month period ended March 31, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. Certain reclassifications have been made to the Company’s condensed consolidated financial statements for the three-month period ended March 31, 2019 to conform to the current period’s condensed consolidated financial statement presentation. There was no effect on total assets, equity and net loss. A reclassification of $6,000 from interest expense to SG&A expense was recorded to reclass the Intuit processing fees for customer payments made through the Intuit portal via credit card or bank draft that was previously included in interest expense as of March 31, 2019 and is included in SG&A as of March 31, 2020. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. |
Recent Authoritative Guidance
Recent Authoritative Guidance | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Authoritative Guidance | NOTE 2—RECENT AUTHORITATIVE GUIDANCE Recently Issued Accounting Principles Other than the pronouncement noted below, there have been no recent accounting pronouncements or changes in accounting pronouncements during the three-month period ended March 31, 2020, that are of material significance, or have potential material significance, to the Company. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (“ASC 326”), authoritative guidance amending how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The guidance requires the application of a current expected credit loss model, which is a new impairment model based on expected losses. The new guidance is effective for interim and annual reporting periods beginning after December 15, 2022. The Company is currently evaluating the impact of the new guidance on its condensed consolidated financial statements and related disclosures. Recently Adopted Accounting Principles In June 2018, the FASB issued ASU 2018-07, which simplifies the accounting for nonemployee share-based payment transactions. The amendments specify that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. The standard was effective in the first quarter of fiscal year 2020, although early adoption was permitted (but no sooner than the adoption of Topic 606). The Company concluded that the adoption of this ASU did not have a material impact on the Company’s condensed consolidated financial statements. |
Liquidity
Liquidity | 3 Months Ended |
Mar. 31, 2020 | |
Liquidity | |
Liquidity | NOTE 3—LIQUIDITY As of March 31, 2020, the Company had approximately $1,416,000 in cash. As of May 10, 2020, the Company had cash of approximately $1,881,000 including $461,000 in PPP loan proceeds. OmniMetrix is considered an essential business due to the fact that it provides infrastructure support to both government and commercial sectors and across key industries. The Company has not experienced any material negative impacts due to the COVID-19 pandemic to date. The Company continued to realize new equipment sales just not at the anticipated growth rate and it continued to collect its monthly recurring monitoring revenues and has retained its customer base. While the impacts of COVID-19 in the future are uncertain, the Company believes that due to the need for backup power and the desirability of remote monitoring services, it should be positioned for stable financial performance. Such cash plus the cash generated from operations and borrowing from the OmniMetrix Loan and Security Agreement, will provide sufficient liquidity to finance the operating activities of Acorn and OmniMetrix at their current level of operations for the foreseeable future and for the twelve months from the issuance of these consolidated financial statements in particular. |
Investment in Omnimetrix
Investment in Omnimetrix | 3 Months Ended |
Mar. 31, 2020 | |
Schedule of Investments [Abstract] | |
Investment in Omnimetrix | NOTE 4—INVESTMENT IN OMNIMETRIX In 2015, one of the Company’s then-current directors (the “Investor”) acquired a 20% interest in the Company’s OMX Holdings, Inc. subsidiary (“Holdings”) through the purchase of $1,000,000 of OmniMetrix Preferred Stock (“Preferred Stock”). Holdings is the holder of 100% of the membership interests of OmniMetrix, LLC through which the Company operates its Power Generation and Cathodic Protection monitoring activities. The $1,000,000 investment by the Investor was recorded as an increase in non-controlling interests. On July 1, 2019, in accordance with terms established in 2015 at the time of the original investment, the Company repurchased from the Investor the shares of Preferred Stock then held by the Investor for a purchase price of $1,273,000 in cash (which included $323,000 of unpaid accrued dividends through June 30, 2019). The repurchase raised the Company’s ownership in Holdings from 80% to 99%, with the remaining 1% owned by the then-CEO of OmniMetrix, LLC. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Leases | NOTE 5—LEASES OmniMetrix leases office space and office equipment under operating lease agreements. The office lease expires on September 30, 2025. The office equipment lease was entered into in April 2019 and has a sixty-month term. Operating lease payments for the three months ended March 31, 2020 and 2019 were $28,000 and $27,000, respectively. The future minimum lease payments on non-cancelable operating leases as of March 31, 2020 using a discount rate of 4.5% are $573,000. Supplemental cash flow information related to leases consisted of the following (in thousands): March 31, 2020 2019 Cash paid for operating lease liabilities $ 28 ― Supplemental balance sheet information related to leases consisted of the following: 2020 Weighted average remaining lease terms for operating leases 5.47 The table below reconciles the undiscounted future minimum lease payments under non-cancelable lease agreements having initial terms in excess of one year to the total operating lease liabilities recognized on the consolidated balance sheet as of March 31, 2020 (in thousands): Twelve-month period ended March 31, 2021 $ 80 2022 122 2023 125 2024 129 2025 129 Thereafter 67 Total undiscounted cash flows 652 Less: Imputed interest (79 ) Present value of operating lease liabilities (a) $ 573 (a) Includes current portion of $55,000 for operating leases. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | NOTE 6—DEBT (a) OmniMetrix In March 2019, OmniMetrix reinstated its Loan and Security Agreement providing OmniMetrix with access to accounts receivable formula-based financing of the lesser of 75% of eligible receivables or $1,000,000. Debt incurred under this financing arrangement bears interest at the greater of 6% and prime (3.25% at March 31, 2020) plus 1.5% per year. In addition, OmniMetrix is to pay a monthly service charge of 0.75% of the average aggregate principal amount outstanding for the prior month, for an effective rate of interest on advances of 15% during the three months ended March 31, 2020. OmniMetrix also agreed to continue to maintain a minimum loan balance of $150,000 in its line-of-credit with the lender for a minimum of two years beginning March 1, 2019. From time to time, the balance outstanding may fall below $150,000 based on collections applied against the loan balance and the timing of loan draws. The monthly service charge and interest is calculated on the greater of the outstanding balance or $150,000. Interest expense for the three-months-ended March 31, 2020 and 2019 was $7,000 and $2,000, respectively. OmniMetrix had an outstanding balance of $139,000 and $136,000 as of March 31, 2020 and December 31, 2019, respectively, pursuant to the Loan and Security Agreement and $54,000 was available to borrow at March 31, 2020. |
Equity
Equity | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Equity | NOTE 7—EQUITY (a) General At March 31, 2020, the Company had issued and outstanding 39,687,589 shares of its common stock, par value $0.01 per share. Holders of outstanding common stock are entitled to receive dividends when, as and if declared by the Board and to share ratably in the assets of the Company legally available for distribution in the event of a liquidation, dissolution or winding up of the Company. Holders of common stock do not have subscription, redemption, conversion or other preemptive rights. Holders of the common stock are entitled to elect all of the Directors on the Company’s Board. Holders of the common stock do not have cumulative voting rights, meaning that the holders of more than 50% of the common stock can elect all of the Company’s Directors. Except as otherwise required by Delaware General Corporation Law, all stockholder action is taken by vote of a majority of shares of common stock present at a meeting of stockholders at which a quorum (a majority of the issued and outstanding shares of common stock) is present in person or by proxy or by written consent pursuant to Delaware law (other than the election of Directors, who are elected by a plurality vote). The Company is not authorized to issue preferred stock. Accordingly, no preferred stock is issued or outstanding. (b) Rights Offering On June 28, 2019, the Company completed a rights offering, raising $2,184,000 in proceeds of which $1,628,000 was from related parties, net of $210,000 in expenses. Pursuant to the rights offering, Acorn securityholders and parties to a backstop agreement purchased 9,975,553 shares of Acorn common stock for $0.24 per share. Under the terms of the rights offering, each right entitled securityholders as of June 3, 2019, the record date for the rights offering, to purchase 0.312 shares of Acorn common stock at a subscription price of $0.24 per whole share. No fractional shares were issued. The closing price of Acorn’s common stock on the record date of the rights offering was $0.2925. Distribution of the rights commenced on June 6, 2019 and were exercisable through June 24, 2019. In connection with the rights offering, Acorn entered into a backstop agreement with certain of its directors and Leap Tide Capital Management LLC, the sole manager of which is Acorn’s President and CEO, pursuant to which they agreed to purchase from Acorn any and all unsubscribed shares of common stock in the rights offering, subject to the terms, conditions and limitations of the backstop agreement. The backstop purchasers did not receive any compensation or other consideration for entering into or consummating the backstop agreement. On July 1, 2019, the Company utilized a portion of the rights offering proceeds to complete the planned reacquisition of a 19% interest in its OMX Holdings, Inc. subsidiary (“Holdings”) for $1,273,000, including accrued dividends. Holdings owns 100% of the membership interests of OmniMetrix, LLC. The purchase price was based on terms established in November 2015 at the time of the original investment. The purchase raised Acorn’s ownership in Holdings from 80% to 99%, with the remaining 1% owned by the former CEO of OmniMetrix, LLC. See Note 4 for further discussion. The balance of the rights offering net proceeds provides OmniMetrix with additional sales and marketing resources to facilitate expansion into additional geographic markets and new product applications, to support next-generation product development and for general working capital purposes. (c) Summary Employee Option Information The Company’s stock option plans provide for the grant to officers, directors and other key employees of options to purchase shares of common stock. The purchase price may be paid in cash or at the end of the option term, if the option is “in-the-money”, it is automatically exercised “net”. In a net exercise of an option, the Company does not require a payment of the exercise price of the option from the optionee, but reduces the number of shares of common stock issued upon the exercise of the option by the smallest number of whole shares that has an aggregate fair market value equal to or in excess of the aggregate exercise price for the option shares covered by the option exercised. Each option is exercisable to one share of the Company’s common stock. Most options expire within five to ten years from the date of the grant, and generally vest over three-year period from the date of the grant. At the annual meeting of stockholders on September 11, 2012, the Company’s stockholders approved an Amendment to the Company’s 2006 Stock Incentive Plan to increase the number of available shares by 1,000,000 and an Amendment to the Company’s 2006 Stock Incentive Plan for Non-Employee Directors to increase the number of available shares by 200,000. In February 2019, the Company’s Board extended the expiration date of the 2006 Stock Incentive Plan until December 31, 2024. At March 31, 2020, 1,766,719 options were available for grant under the 2006 Amended and Restated Stock Incentive Plan and no options were available for grant under the 2006 Director Plan. During the three months ended March 31, 2020, 30,000 options were issued to directors and 35,000 options were issued to the Company’s CEO. In the three months ended March 30, 2020, there were no grants to non-employees. The fair value of the options issued was $14,000. 96,250 options were exercised during the three months ended March 31, 2020. The intrinsic value of options outstanding and of options exercisable at March 31, 2020 was less than $1,000. A summary of stock option activity for the three months ended March 31, 2020 is as follows: Number of Options (in shares) Weighted Average Exercise Price Per Weighted Aggregate Outstanding at December 31, 2019 1,364,490 $ 1.87 1.81 years $ 46,000 Granted 65,000 0.37 Exercised (96,250 ) 0.19 Forfeited or expired (524,430 ) 2.43 Outstanding at March 31, 2020 808,810 $ 1.59 3.3 years $ — Exercisable at March 31, 2020 585,726 $ 2.06 2.2 years $ — The fair value of the options granted of $14,000 was estimated on the grant date using the Black-Scholes option-pricing model with the following weighted average assumptions: Risk-free interest rate 1.5 % Expected term of options 3.7 years Expected annual volatility 110 % Expected dividend yield — % (d) Stock-based Compensation Expense Stock-based compensation expense included in selling, general and administrative expenses in the Company’s unaudited condensed consolidated statements of operations was $6,000 and $6,000 for the three-month periods ended March 31, 2020 and 2019, respectively. The total compensation cost related to non-vested awards not yet recognized was $39,000 as of March 31, 2020. (e) Warrants The Company previously issued warrants at exercise prices equal to or greater than market value of the Company’s common stock at the date of issuance. A summary of warrant activity follows: Number of Warrants (in shares) Weighted Weighted Outstanding at December 31, 2019 2,177,857 $ 1.28 4 months Granted — — Exercised — — Forfeited or expired — — Outstanding at March 31, 2020 2,177,857 $ 1.28 1 month |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting | NOTE 8— SEGMENT REPORTING As of March 31, 2020, the Company operates in two reportable operating segments, both of which are performed through the Company’s OmniMetrix subsidiary: ● The PG (Power Generation) segment provides wireless remote monitoring and control systems and services for critical assets as well as Internet of Things applications. The PG segment includes OmniMetrix’s air compressor monitoring device that provides performance monitoring on industrial air compressors and dryers. ● The CP (Cathodic Protection) segment provides for remote monitoring of cathodic protection systems on gas pipelines for gas utilities and pipeline companies. The Company’s reportable segments are strategic business units, offering different products and services and are managed separately as each business requires different technology and marketing strategies. The following tables represent segmented data for the three-month periods ended March 31, 2020 and March 31, 2019 (in thousands): PG CP Total Three months ended March 31, 2020: Revenues from external customers $ 1,109 $ 229 $ 1,338 Segment gross profit 805 117 922 Depreciation and amortization 13 3 16 Segment income(loss) before income taxes $ 5 $ (62 ) $ (57 ) Three months ended March 31, 2019: Revenues from external customers $ 996 $ 331 $ 1,327 Segment gross profit 686 135 821 Depreciation and amortization 20 7 27 Segment income (loss) before income taxes $ 23 $ (85 ) $ (62 ) The gross profit of the PG segment during the three months ended March 31, 2019 included a $30,000 accrual, which unfavorably impacted gross margin by approximately 2%. The accrual was for an estimated payment of approximately $30,000 related to a long-term purchase commitment of what is now discontinued technology that has been replaced with upgraded technology. This adjustment is recorded in cost of sales – other. The Company does not currently break out total assets by reportable segment as there is a high level of shared utilization between the segments. Further, the Chief Decision Maker (CDM) does not review the assets by segment. Reconciliation of Segment Loss to Consolidated Net Loss Before Income Taxes Three months ended March 31, 2020 2019 Total net loss before income taxes for reportable segments $ (57 ) $ (62 ) Unallocated cost of corporate headquarters (227 ) (199 ) Consolidated loss before income taxes $ (284 ) $ (261 ) |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | NOTE 9—REVENUE The following table disaggregates the Company’s revenue for the three-month periods ended March 31, 2020 and 2019 (in thousands): Hardware Monitoring Total Three months ended March 31, 2020: PG Segment $ 277 $ 832 $ 1,109 CP Segment 166 63 229 Total Revenue $ 443 $ 895 $ 1,338 Hardware Monitoring Total Three months ended March 31, 2019: PG Segment $ 290 $ 706 $ 996 CP Segment 271 60 331 Total Revenue $ 561 $ 766 $ 1,327 Deferred revenue activity for the three months ended March 31, 2020 can be seen in the table below (in thousands): Hardware Monitoring Total Balance at December 31, 2019 $ 2,663 $ 1,832 $ 4,495 Additions during the period 349 908 1,286 Recognized as revenue (371 ) (895 ) (1,295 ) Balance at March 31, 2020 $ 2,641 $ 1,845 $ 4,486 Amounts to be recognized as revenue in the twelve-month-period ending: March 31, 2021 $ 1,431 $ 1,662 $ 3,093 March 31, 2022 928 180 1,108 March 31, 2023 and thereafter 282 3 285 $ 2,641 $ 1,845 $ 4,486 Other revenue of approximately $72,000 is related to accessories, repairs, and other miscellaneous charges that are recognized to revenue when sold and are not deferred. Deferred charges relate only to the sale of equipment. Deferred charges activity for the three months ended March 31, 2020 can be seen in the table below (in thousands): Balance at December 31, 2019 $ 1,433 Additions, net of adjustments, during the period 190 Recognized as cost of sales (208 ) Balance at March 31, 2020 $ 1,415 Amounts to be recognized as cost of sales in the twelve-month-period ending: March 31, 2021 $ 781 March 31, 2022 490 * March 31, 2023 and thereafter 144 * $ 1,415 Other COGS recognized of approximately $63,000 is related to accessories, repairs, and other miscellaneous charges that are recognized to revenue when sold and are not deferred in addition to $145,000 in monitoring COGS which is not deferred. *Amounts included in other assets in the Company’s unaudited condensed consolidated balance sheets at March 31, 2020. The following table provides a reconciliation of the Company’s sales commissions contract assets for the three-month period ended March 31, 2020 (in thousands): Hardware Monitoring Total Balance at December 31, 2019 $ 101 $ 37 $ 138 Additions during the period 21 5 26 Amortization of sales commissions (14 ) (5 ) (19 ) Balance at March 31, 2020 $ 108 $ 37 $ 145 The capitalized sales commissions are included in other current assets ($76,000) and other assets ($69,000) in the Company’s unaudited condensed consolidated balance sheets at March 31, 2020. The capitalized sales commissions are included in other current assets ($60,000) and other assets ($78,000) in the Company’s consolidated balance sheets at December 31, 2019. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 10—SUBSEQUENT EVENTS On April 24, 2020, Acorn Energy, Inc. received Paycheck Protection Program (“PPP”) loan proceeds in the amount of $41,600. On April 30, 2020, OmniMetrix, LLC received PPP loan proceeds in the amount $419,800. Under the PPP of the Coronavirus Aid, Relief and Economic Security Act (the “Act”), up to the full principal amount of a loan and any accrued interest can be forgiven if the borrower uses all of the loan proceeds for forgivable purposes (payroll, benefits, lease/mortgage payments and/or utilities) required under the Act and any rule, regulation, or guidance issued by the SBA pursuant to the Act (collectively, the “Forgiveness Provisions”). The amount of forgiveness of the PPP loan depends on the borrower’s payroll costs over an eight-week period beginning on the date of funding. Any processes or procedures established under the Forgiveness Provisions must be followed and any requirements of the Forgiveness Provisions must be fully satisfied in order to obtain such loan forgiveness. Pursuant to the provisions of the Act, the first six monthly payments of principal and interest will be deferred. Interest will accrue during the deferment period. The borrower must pay principal and interest payments on the fifth day of each month beginning seven months from the date of the applicable promissory note. If no portion of the Acorn Energy PPP loan is forgiven under the Forgiveness Provisions, the monthly payments on that loan will be in the amount of $2,400 each; if no portion of the OmniMetrix PPP loan is forgiven under the Forgiveness Provisions, the monthly payments on that loan will be in the amount of $24,000 each. If any portion of a loan is forgiven under the Forgiveness Provisions, the payments will be in equal amounts which are sufficient to repay all principal and interest over the remaining term of the loan. The lender will apply each installment payment first to pay interest accrued to the day the lender receives the payment, then to bring principal current, then to pay any late fees, and will apply any remaining balance to reduce principal. All remaining principal and accrued interest is due and payable two years from the date of the applicable promissory note. In any event any payment is not made within ten days of the due date, the borrower will pay the lender a late charge in the amount not to exceed 5% of the payment. The borrower may prepay the principal at any time without penalty. Upon default, the loan shall bear interest at 6% per year until paid in full. On April 28, 2020, the Company entered into a new agreement for data hosting and business continuity services replacing an expiring agreement with the same vendor effective May 1, 2020. The agreement has a twelve-month term and the total payments under this agreement are $148,000 in the aggregate. This represents an increase of $21,000 for additional services under this agreement from the prior twelve-month period. On May 5, 2020, 2,142,857 warrants with a fair value of $1,018,000 expired in accordance with their terms. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Schedule of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases consisted of the following (in thousands): March 31, 2020 2019 Cash paid for operating lease liabilities $ 28 ― |
Schedule of Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases consisted of the following: 2020 Weighted average remaining lease terms for operating leases 5.47 |
Schedule of Future Minimum Lease Payments | The table below reconciles the undiscounted future minimum lease payments under non-cancelable lease agreements having initial terms in excess of one year to the total operating lease liabilities recognized on the consolidated balance sheet as of March 31, 2020 (in thousands): Twelve-month period ended March 31, 2021 $ 80 2022 122 2023 125 2024 129 2025 129 Thereafter 67 Total undiscounted cash flows 652 Less: Imputed interest (79 ) Present value of operating lease liabilities (a) $ 573 (a) Includes current portion of $55,000 for operating leases. |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Summary of Stock Option Activity | A summary of stock option activity for the three months ended March 31, 2020 is as follows: Number of Options (in shares) Weighted Average Exercise Price Per Weighted Aggregate Outstanding at December 31, 2019 1,364,490 $ 1.87 1.81 years $ 46,000 Granted 65,000 0.37 Exercised (96,250 ) 0.19 Forfeited or expired (524,430 ) 2.43 Outstanding at March 31, 2020 808,810 $ 1.59 3.3 years $ — Exercisable at March 31, 2020 585,726 $ 2.06 2.2 years $ — |
Schedule of Stock Options Fair Value Assumptions Estimated Using Black-Scholes Pricing Model | The fair value of the options granted of $14,000 was estimated on the grant date using the Black-Scholes option-pricing model with the following weighted average assumptions: Risk-free interest rate 1.5 % Expected term of options 3.7 years Expected annual volatility 110 % Expected dividend yield — % |
Summary of Warrant Activity | The Company previously issued warrants at exercise prices equal to or greater than market value of the Company’s common stock at the date of issuance. A summary of warrant activity follows: Number of Warrants (in shares) Weighted Weighted Outstanding at December 31, 2019 2,177,857 $ 1.28 4 months Granted — — Exercised — — Forfeited or expired — — Outstanding at March 31, 2020 2,177,857 $ 1.28 1 month |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Summary of Segmented Data | The following tables represent segmented data for the three-month periods ended March 31, 2020 and March 31, 2019 (in thousands): PG CP Total Three months ended March 31, 2020: Revenues from external customers $ 1,109 $ 229 $ 1,338 Segment gross profit 805 117 922 Depreciation and amortization 13 3 16 Segment income(loss) before income taxes $ 5 $ (62 ) $ (57 ) Three months ended March 31, 2019: Revenues from external customers $ 996 $ 331 $ 1,327 Segment gross profit 686 135 821 Depreciation and amortization 20 7 27 Segment income (loss) before income taxes $ 23 $ (85 ) $ (62 ) |
Schedule of Reconciliation of Segment Data to Consolidated Net Loss Before Income Taxes | Reconciliation of Segment Loss to Consolidated Net Loss Before Income Taxes Three months ended March 31, 2020 2019 Total net loss before income taxes for reportable segments $ (57 ) $ (62 ) Unallocated cost of corporate headquarters (227 ) (199 ) Consolidated loss before income taxes $ (284 ) $ (261 ) |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregates of Revenue | The following table disaggregates the Company’s revenue for the three-month periods ended March 31, 2020 and 2019 (in thousands): Hardware Monitoring Total Three months ended March 31, 2020: PG Segment $ 277 $ 832 $ 1,109 CP Segment 166 63 229 Total Revenue $ 443 $ 895 $ 1,338 Hardware Monitoring Total Three months ended March 31, 2019: PG Segment $ 290 $ 706 $ 996 CP Segment 271 60 331 Total Revenue $ 561 $ 766 $ 1,327 |
Schedule of Deferred Revenue Activity | Deferred revenue activity for the three months ended March 31, 2020 can be seen in the table below (in thousands): Hardware Monitoring Total Balance at December 31, 2019 $ 2,663 $ 1,832 $ 4,495 Additions during the period 349 908 1,286 Recognized as revenue (371 ) (895 ) (1,295 ) Balance at March 31, 2020 $ 2,641 $ 1,845 $ 4,486 Amounts to be recognized as revenue in the twelve-month-period ending: March 31, 2021 $ 1,431 $ 1,662 $ 3,093 March 31, 2022 928 180 1,108 March 31, 2023 and thereafter 282 3 285 $ 2,641 $ 1,845 $ 4,486 |
Schedule of Deferred Charges Activity | Deferred charges relate only to the sale of equipment. Deferred charges activity for the three months ended March 31, 2020 can be seen in the table below (in thousands): Balance at December 31, 2019 $ 1,433 Additions, net of adjustments, during the period 190 Recognized as cost of sales (208 ) Balance at March 31, 2020 $ 1,415 Amounts to be recognized as cost of sales in the twelve-month-period ending: March 31, 2021 $ 781 March 31, 2022 490 * March 31, 2023 and thereafter 144 * $ 1,415 Other COGS recognized of approximately $63,000 is related to accessories, repairs, and other miscellaneous charges that are recognized to revenue when sold and are not deferred in addition to $145,000 in monitoring COGS which is not deferred. *Amounts included in other assets in the Company’s unaudited condensed consolidated balance sheets at March 31, 2020. |
Schedule of Sales Commissions Contract Assets | The following table provides a reconciliation of the Company’s sales commissions contract assets for the three-month period ended March 31, 2020 (in thousands): Hardware Monitoring Total Balance at December 31, 2019 $ 101 $ 37 $ 138 Additions during the period 21 5 26 Amortization of sales commissions (14 ) (5 ) (19 ) Balance at March 31, 2020 $ 108 $ 37 $ 145 |
Basis of Presentation (Details
Basis of Presentation (Details Narrative) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Interest expense | $ 6 |
Liquidity (Details Narrative)
Liquidity (Details Narrative) - USD ($) | May 10, 2020 | Apr. 30, 2020 | Apr. 24, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Cash | $ 1,416,000 | $ 1,247,000 | $ 779,000 | $ 973,000 | |||
Subsequent Event [Member] | Paycheck Protection Program [Member] | |||||||
Cash | $ 1,881,000 | ||||||
Loan proceeds | $ 461,000 | $ 419,800 | $ 41,600 |
Investment in Omnimetrix (Detai
Investment in Omnimetrix (Details Narrative) - USD ($) $ in Thousands | Jul. 02, 2019 | Dec. 31, 2015 | Mar. 31, 2020 |
Payments to repurchase of preferred stock | $ 1,273 | ||
Unpaid dividend payment | $ 323 | ||
OmniMetrix, LLC [Member] | |||
Percentage of ownership in Omni Metrix, LLC | 99.00% | 80.00% | |
CEO [Member] | OmniMetrix, LLC [Member] | |||
Percentage of ownership in Omni Metrix, LLC | 1.00% | ||
OMX Holdings, Inc [Member] | |||
Percentage acquired by one of the company's directors | 20.00% | ||
Purchase of Omni Metrix preferred stock | $ 1,000 | ||
OMX Holdings, Inc [Member] | Investor [Member] | |||
Investment | $ 1,000 | ||
OMX Holdings, Inc [Member] | CEO [Member] | |||
Percentage of ownership in Omni Metrix, LLC | 1.00% | ||
OmniMetrix, LLC [Member] | |||
Percentage of ownership in Omni Metrix, LLC | 100.00% | 100.00% |
Leases (Details Narrative)
Leases (Details Narrative) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |||
Nov. 30, 2019 | Apr. 30, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | ||
Operating lease discount rate | 4.50% | ||||
Operating lease liability | [1] | $ 573 | |||
Operating Lease Agreements [Member] | Omni Metrix Holdings, Inc. [Member] | |||||
Lease expiration date | Sep. 30, 2025 | ||||
Lease description | The office equipment lease was entered into in April 2019 and has a sixty-month term. | ||||
Operating lease payments | $ 28 | $ 27 | |||
[1] | Includes current portion of $55,000 for operating leases. |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Leases [Abstract] | ||
Cash paid for operating lease liabilities | $ 28 |
Leases - Schedule of Suppleme_2
Leases - Schedule of Supplemental Balance Sheet Information Related to Leases (Details) | Mar. 31, 2020 |
Leases [Abstract] | |
Weighted average remaining lease terms for operating leases | 5 years 5 months 20 days |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments (Details) $ in Thousands | Mar. 31, 2020USD ($) | |
Leases [Abstract] | ||
2021 | $ 80 | |
2022 | 122 | |
2023 | 125 | |
2024 | 129 | |
2025 | 129 | |
Thereafter | 67 | |
Total undiscounted cash flows | 652 | |
Less: Imputed interest | (79) | |
Present value of operating lease liabilities | $ 573 | [1] |
[1] | Includes current portion of $55,000 for operating leases. |
Leases - Schedule of Future M_2
Leases - Schedule of Future Minimum Lease Payments (Details) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Current operating lease | $ 55 | $ 53 |
Debt (Details Narrative)
Debt (Details Narrative) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Interest expense | $ 6 | |||
Omni Metrix [Member] | ||||
Interest expense | 7 | $ 2 | ||
Loan balance under loan and security agreement | 139 | $ 136 | ||
Available to borrowed amount | $ 54 | |||
Omni Metrix [Member] | Loan and Security Agreement [Member] | ||||
Percentage of all eligible invoices | 75.00% | |||
Maximum financing of account receivable formula-based agreement | $ 1,000 | |||
Debt interest rate description | The greater of 6% and prime (3.25% at March 31, 2020) plus 1.5% per year. | |||
Percentage of monthly service charge | 0.75% | |||
Debt effective interest rate | 15.00% | |||
Minimum loan balance | $ 150 | $ 150 | ||
Monthly service charge and interest outstanding | $ 150 |
Equity (Details Narrative)
Equity (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | Jul. 02, 2019 | Jun. 28, 2019 | Jun. 03, 2019 | Feb. 28, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2015 | Sep. 11, 2012 |
Common stock issued | 39,687,589 | 39,591,339 | |||||||
Common stock, shares outstanding | 39,687,589 | ||||||||
Common stock par value | $ 0.01 | $ 0.01 | |||||||
Cumulative voting rights description | Holders of the common stock are entitled to elect all of the Directors on the Company's Board. Holders of the common stock do not have cumulative voting rights, meaning that the holders of more than 50% of the common stock can elect all of the Company's Directors. Except as otherwise required by Delaware General Corporation Law, all stockholder action is taken by vote of a majority of shares of common stock present at a meeting of stockholders at which a quorum (a majority of the issued and outstanding shares of common stock) is present in person or by proxy or by written consent pursuant to Delaware law (other than the election of Directors, who are elected by a plurality vote). | ||||||||
Proceeds from right offering | $ 2,184 | ||||||||
Due from related parties | 1,628 | ||||||||
Offering cost during period | $ 210 | ||||||||
Rights offering price per share | $ 0.2925 | ||||||||
Distribution of rights commenced description | Distribution of the rights commenced on June 6, 2019 and were exercisable through June 24, 2019 | ||||||||
Option vested term | 3 years | ||||||||
Number of options granted during period | 65,000 | 175,000 | |||||||
Number of options granted during period, fair value | $ 14 | ||||||||
Number of options exercised | 96,250 | ||||||||
Intrinsic value of options exercisable | |||||||||
Stock based compensation expense | 6 | $ 6 | |||||||
Compensation cost, non-vested awards not yet recognized | $ 39 | ||||||||
2006 Stock Incentive Plan [Member] | |||||||||
Expiration date | Dec. 31, 2024 | ||||||||
2006 Amended and Restated Stock Incentive Plan [Member] | |||||||||
Number of options available for grant | 1,766,719 | ||||||||
CEO [Member] | |||||||||
Number of options granted during period | 35,000 | ||||||||
Directors [Member] | |||||||||
Number of options granted during period | 30,000 | ||||||||
Non Employee [Member] | |||||||||
Number of options granted during period | |||||||||
Minimum [Member] | |||||||||
Options expire term | 5 years | ||||||||
Maximum [Member] | |||||||||
Options expire term | 10 years | ||||||||
Maximum [Member] | 2006 Stock Incentive Plan [Member] | |||||||||
Increase number of shares available | 1,000,000 | ||||||||
Maximum [Member] | Non-Employee Directors [Member] | 2006 Stock Incentive Plan [Member] | |||||||||
Increase number of shares available | 200,000 | ||||||||
OMX Holdings, Inc [Member] | |||||||||
Proceeds from right offering | $ 1,273 | ||||||||
Business acquisition interest rate percentage | 19.00% | ||||||||
OMX Holdings, Inc [Member] | CEO [Member] | |||||||||
Equity ownership percentage | 1.00% | ||||||||
OMX Holdings, Inc [Member] | Minimum [Member] | |||||||||
Equity ownership percentage | 80.00% | ||||||||
OMX Holdings, Inc [Member] | Maximum [Member] | |||||||||
Equity ownership percentage | 99.00% | ||||||||
OmniMetrix, LLC [Member] | |||||||||
Equity ownership percentage | 100.00% | 100.00% | |||||||
Securityholders and Parties [Member] | |||||||||
Purchase of common stock during period | 0.312 | ||||||||
Common stock purchase price | $ 0.24 | ||||||||
Securityholders and Parties [Member] | Backstop Agreement [Member] | |||||||||
Purchase of common stock during period | 9,975,553 | ||||||||
Common stock purchase price | $ 0.24 |
Equity - Summary of Stock Optio
Equity - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Equity [Abstract] | ||
Number of Options (in shares), Outstanding at beginning of period | 1,364,490 | |
Number of Options (in shares), Granted | 65,000 | 175,000 |
Number of Options (in shares), Exercised | (96,250) | |
Number of Options (in shares), Forfeited or expired | (524,430) | |
Number of Options (in shares), Outstanding at end of period | 808,810 | |
Number of Options (in shares), Exercisable at end of period | 585,726 | |
Weighted Average Exercise Price Per Share, Outstanding at beginning of period | $ 1.87 | |
Weighted Average Exercise Price Per Share, Granted | 0.37 | |
Weighted Average Exercise Price Per Share, Exercised | 0.19 | |
Weighted Average Exercise Price Per Share, Forfeited or expired | 2.43 | |
Weighted Average Exercise Price Per Share, Outstanding at end of period | 1.59 | |
Weighted Average Exercise Price Per Share, Exercisable at end of period | $ 2.06 | |
Weighted Average Remaining Contractual Life, Outstanding at beginning of period | 1 year 9 months 22 days | |
Weighted Average Remaining Contractual Life, Outstanding at end of period | 3 years 3 months 19 days | |
Weighted Average Remaining Contractual Life, Exercisable at end of period | 2 years 2 months 12 days | |
Aggregate Intrinsic Value, Outstanding at beginning of period | $ 46 | |
Aggregate Intrinsic Value, Outstanding at end of period | ||
Aggregate Intrinsic Value, Exercisable at end of period |
Equity - Schedule of Stock Opti
Equity - Schedule of Stock Options Fair Value Assumptions Estimated Using Black-Scholes Pricing Model (Details) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Risk-free interest rate | 1.50% |
Expected term of options | 3 years 8 months 12 days |
Expected annual volatility | 110.00% |
Expected dividend yield | 0.00% |
Equity - Summary of Warrant Act
Equity - Summary of Warrant Activity (Details) - Warrants [Member] | 3 Months Ended |
Mar. 31, 2020$ / sharesshares | |
Number of Warrants (in Shares), Outstanding at beginning balance | shares | 2,177,857 |
Number of Warrants (in Shares), Granted | shares | |
Number of Warrants (in Shares), Exercised | shares | |
Number of Warrants (in Shares), Forfeited or expired | shares | |
Number of Warrants (in Shares), Outstanding at end balance | shares | 2,177,857 |
Weighted Average Exercise Price Per Share, Outstanding at beginning balance | $ / shares | $ 1.28 |
Weighted Average Exercise Price Per Share, Granted | $ / shares | |
Weighted Average Exercise Price Per Share, Exercised | $ / shares | |
Weighted Average Exercise Price Per Share, Forfeited or expired | $ / shares | |
Weighted Average Exercise Price Per Share, Outstanding at end balance | $ / shares | $ 1.28 |
Weighted Average Remaining Contractual Life, Outstanding at beginning balance | 4 months |
Weighted Average Remaining Contractual Life, Outstanding at end balance | 1 month |
Segment Reporting (Details Narr
Segment Reporting (Details Narrative) | 3 Months Ended |
Mar. 31, 2020Segments | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segment Reporting - Summary of
Segment Reporting - Summary of Segmented Data (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Revenue from external customers | $ 1,338 | $ 1,327 |
Segment gross profit | 922 | 821 |
Omni Metrix Holdings, Inc. [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue from external customers | 1,338 | 1,327 |
Segment gross profit | 922 | 821 |
Depreciation and amortization | 16 | 27 |
Segment income (loss) before income taxes | (57) | (62) |
PG [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue from external customers | 1,109 | 996 |
Segment gross profit | 805 | 686 |
Depreciation and amortization | 13 | 20 |
Segment income (loss) before income taxes | 5 | 23 |
CP [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue from external customers | 229 | 331 |
Segment gross profit | 117 | 135 |
Depreciation and amortization | 3 | 7 |
Segment income (loss) before income taxes | $ (62) | $ (85) |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Reconciliation of Segment Data to Consolidated Net Loss Before Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting [Abstract] | ||
Total net loss before income taxes for reportable segments | $ (57) | $ (62) |
Unallocated cost of corporate headquarters | (227) | (199) |
Consolidated loss before income taxes | $ (284) | $ (261) |
Revenue (Details Narrative)
Revenue (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Revenue | $ 1,338 | $ 1,327 | |
Other current assets | 136 | $ 189 | |
Capitalized Sales Commissions [Member] | |||
Other current assets | 76 | 60 | |
Other assets | 69 | $ 78 | |
Other Revenue Related to Accessories, Repairs and Other Miscellaneous Charges [Member] | |||
Revenue | 72 | ||
Other Cost of Good Sold Related to Accessories, Repairs and Other Miscellaneous Charges [Member] | |||
Cost of goods sold | 63 | ||
Monitoring Services [Member] | |||
Cost of goods sold | $ 145 |
Revenue - Schedule of Disaggreg
Revenue - Schedule of Disaggregates of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue | $ 1,338 | $ 1,327 |
PG [Member] | ||
Revenue | 1,109 | 996 |
CP [Member] | ||
Revenue | 229 | 331 |
Hardware [Member] | ||
Revenue | 443 | 561 |
Hardware [Member] | PG [Member] | ||
Revenue | 277 | 290 |
Hardware [Member] | CP [Member] | ||
Revenue | 166 | 271 |
Monitoring [Member] | ||
Revenue | 895 | 766 |
Monitoring [Member] | PG [Member] | ||
Revenue | 832 | 706 |
Monitoring [Member] | CP [Member] | ||
Revenue | $ 63 | $ 60 |
Revenue - Schedule of Deferred
Revenue - Schedule of Deferred Revenue Activity (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Deferred revenue beginning balance | $ 4,495 |
Additions during the period | 1,286 |
Recognized as revenue | (1,295) |
Deferred revenue ending balance | 4,486 |
March 31, 2021 [Member] | |
Recognized as revenue | 3,093 |
March 31, 2022 [Member] | |
Recognized as revenue | 1,108 |
March 31, 2023 and Thereafter [Member] | |
Recognized as revenue | 285 |
Hardware [Member] | |
Deferred revenue beginning balance | 2,663 |
Additions during the period | 349 |
Recognized as revenue | (371) |
Deferred revenue ending balance | 2,641 |
Hardware [Member] | March 31, 2021 [Member] | |
Recognized as revenue | 1,431 |
Hardware [Member] | March 31, 2022 [Member] | |
Recognized as revenue | 928 |
Hardware [Member] | March 31, 2023 and Thereafter [Member] | |
Recognized as revenue | 282 |
Monitoring [Member] | |
Deferred revenue beginning balance | 1,832 |
Additions during the period | 908 |
Recognized as revenue | (895) |
Deferred revenue ending balance | 1,845 |
Monitoring [Member] | March 31, 2021 [Member] | |
Recognized as revenue | 1,662 |
Monitoring [Member] | March 31, 2022 [Member] | |
Recognized as revenue | 180 |
Monitoring [Member] | March 31, 2023 and Thereafter [Member] | |
Recognized as revenue | $ 3 |
Revenue - Schedule of Deferre_2
Revenue - Schedule of Deferred Charges Activity (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020USD ($) | ||
Deferred charges beginning balance | $ 1,433 | |
Additions, net of adjustments, during the period | 190 | |
Recognized as cost of sales | (208) | |
Deferred charges ending balance | 1,415 | |
March 31, 2021 [Member] | ||
Recognized as cost of sales | 781 | |
March 31, 2022 [Member] | ||
Recognized as cost of sales | 490 | [1] |
March 31, 2023 and Thereafter [Member] | ||
Recognized as cost of sales | $ 144 | [1] |
[1] | Amounts included in other assets in the Company's unaudited condensed consolidated balance sheets at March 31, 2020. |
Revenue - Schedule of Sales Com
Revenue - Schedule of Sales Commissions Contract Assets (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Sales commissions contract assets beginning balance | $ 138 |
Additions during the period | 26 |
Amortization of sales commissions | (19) |
Sales commissions contract assets ending balance | 145 |
Hardware [Member] | |
Sales commissions contract assets beginning balance | 101 |
Additions during the period | 21 |
Amortization of sales commissions | (14) |
Sales commissions contract assets ending balance | 108 |
Monitoring [Member] | |
Sales commissions contract assets beginning balance | 37 |
Additions during the period | 5 |
Amortization of sales commissions | (5) |
Sales commissions contract assets ending balance | $ 37 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - Subsequent Event [Member] - Paycheck Protection Program [Member] - USD ($) | May 10, 2020 | May 05, 2020 | Apr. 30, 2020 | Apr. 28, 2020 | Apr. 24, 2020 |
Proceeds from loan | $ 461,000 | $ 419,800 | $ 41,600 | ||
Payments of loan | $ 24,000 | $ 2,400 | |||
Loan payment description | In any event any payment is not made within ten days of the due date, the borrower will pay the lender a late charge in the amount not to exceed 5% of the payment. The borrower may prepay the principal at any time without penalty. Upon default, the loan shall bear interest at 6% per year until paid in full. | ||||
New Agreement [Member] | |||||
Payments of loan | $ 148,000 | ||||
Debt instrument, term | 12 months | ||||
Debt Instrument increase | $ 21,000 | ||||
New Agreement [Member] | Warrants [Member] | |||||
Warrants | 2,142,857 | ||||
Fair value of warrant | $ 1,018,000 |