Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2021 | Aug. 05, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2021 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2021 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 001-33886 | |
Entity Registrant Name | ACORN ENERGY, INC. | |
Entity Central Index Key | 0000880984 | |
Entity Tax Identification Number | 22-2786081 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 1000 N West Street | |
Entity Address, Address Line Two | Suite 1200 | |
Entity Address, City or Town | Wilmington | |
Entity Address, State or Province | DE | |
Entity Address, Postal Zip Code | 19801 | |
City Area Code | 410 | |
Local Phone Number | 654-3315 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 39,687,589 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash | $ 1,955,000 | $ 2,063,000 |
Accounts receivable, net | 706,000 | 608,000 |
Inventory, net | 363,000 | 236,000 |
Deferred charges | 738,000 | 764,000 |
Other current assets | 144,000 | 126,000 |
Total current assets | 3,906,000 | 3,797,000 |
Property and equipment, net | 273,000 | 268,000 |
Right-of-use assets, net | 447,000 | 494,000 |
Other assets | 701,000 | 642,000 |
Total assets | 5,327,000 | 5,201,000 |
Current liabilities: | ||
Short-term credit | 149,000 | |
Accounts payable | 277,000 | 229,000 |
Accrued expenses | 215,000 | 168,000 |
Deferred revenue | 3,239,000 | 3,214,000 |
Current operating lease liabilities | 103,000 | 99,000 |
Other current liabilities | 32,000 | 33,000 |
Total current liabilities | 3,866,000 | 3,892,000 |
Long-term liabilities: | ||
Deferred revenue | 1,480,000 | 1,340,000 |
Long-term operating lease liabilities | 391,000 | 443,000 |
Other long-term liabilities | 49,000 | 45,000 |
Total long-term liabilities | 1,920,000 | 1,828,000 |
Acorn Energy, Inc. shareholders | ||
Common stock - $0.01 par value per share: Authorized – 42,000,000 shares; Issued – 39,687,589 shares at June 30, 2021 and December 31, 2020 | 397,000 | 397,000 |
Additional paid-in capital | 102,762,000 | 102,726,000 |
Warrants | 3,000 | 3,000 |
Accumulated deficit | (100,591,000) | (100,613,000) |
Treasury stock, at cost – 801,920 shares at June 30, 2021 and December 31, 2020 | (3,036,000) | (3,036,000) |
Total Acorn Energy, Inc. shareholders’ deficit | (465,000) | (523,000) |
Non-controlling interests | 6,000 | 4,000 |
Total deficit | (459,000) | (519,000) |
Total liabilities and deficit | $ 5,327,000 | $ 5,201,000 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
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 | 39,687,589 |
Treasury stock, shares | 801,920 | 801,920 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement [Abstract] | ||||
Revenue | $ 1,611 | $ 1,468 | $ 3,316 | $ 2,806 |
Cost of sales | 389 | 446 | 884 | 862 |
Gross profit | 1,222 | 1,022 | 2,432 | 1,944 |
Operating expenses: | ||||
Research and development expense | 175 | 138 | 353 | 293 |
Selling, general and administrative expense | 1,042 | 906 | 2,048 | 1,947 |
Total operating expenses | 1,217 | 1,044 | 2,401 | 2,240 |
Operating income (loss) | 5 | (22) | 31 | (296) |
Finance expense, net | (1) | (10) | (5) | (20) |
Income (loss) before income taxes | 4 | (32) | 26 | (316) |
Income tax expense | ||||
Net income (loss) | 4 | (32) | 26 | (316) |
Non-controlling interest share of net income | (2) | (1) | (4) | |
Net income (loss) attributable to Acorn Energy, Inc. shareholders | $ 2 | $ (33) | $ 22 | $ (316) |
Basic and diluted net income (loss) per share attributable to Acorn Energy, Inc. shareholders: | $ 0 | $ 0 | $ 0 | $ (0.01) |
Weighted average number of shares outstanding attributable to Acorn Energy, Inc. shareholders – basic and diluted | ||||
Basic | 39,687,000 | 39,687,000 | 39,687,000 | 39,659,000 |
Diluted | 39,935,000 | 39,687,000 | 39,913,000 | 39,659,000 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Warrant [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Total Acorn Energy, Inc. Shareholders' Deficit [Member] | Noncontrolling Interest [Member] | Total | |
Beginning Balances at Dec. 31, 2019 | $ 396 | $ 101,655 | $ 1,021 | $ (100,682) | $ (3,036) | $ (646) | $ 1 | $ (645) | |
Beginning Balances, shares at Dec. 31, 2019 | 39,591,000 | 802,000 | |||||||
Net income (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 | ||||||||
Stock option compensation | 6 | 6 | 6 | ||||||
Ending Balances at Mar. 31, 2020 | $ 397 | 101,679 | 1,021 | (100,965) | $ (3,036) | (904) | (1) | (905) | |
Ending Balances, shares at Mar. 31, 2020 | 39,687,000 | 802,000 | |||||||
Beginning Balances at Dec. 31, 2019 | $ 396 | 101,655 | 1,021 | (100,682) | $ (3,036) | (646) | 1 | (645) | |
Beginning Balances, shares at Dec. 31, 2019 | 39,591,000 | 802,000 | |||||||
Net income (loss) | (316) | ||||||||
Ending Balances at Jun. 30, 2020 | $ 397 | 102,710 | 3 | (100,998) | $ (3,036) | (924) | (1) | (925) | |
Ending Balances, shares at Jun. 30, 2020 | 39,687,000 | 802,000 | |||||||
Beginning Balances at Mar. 31, 2020 | $ 397 | 101,679 | 1,021 | (100,965) | $ (3,036) | (904) | (1) | (905) | |
Beginning Balances, shares at Mar. 31, 2020 | 39,687,000 | 802,000 | |||||||
Net income (loss) | (33) | (33) | 1 | (32) | |||||
Accrued dividend in OmniMetrix preferred shares | (1) | (1) | |||||||
Value of expired warrants | [1] | 1,018 | (1,018) | ||||||
Stock option compensation | 13 | 13 | 13 | ||||||
Ending Balances at Jun. 30, 2020 | $ 397 | 102,710 | 3 | (100,998) | $ (3,036) | (924) | (1) | (925) | |
Ending Balances, shares at Jun. 30, 2020 | 39,687,000 | 802,000 | |||||||
Beginning Balances at Dec. 31, 2020 | $ 397 | 102,726 | 3 | (100,613) | $ (3,036) | (523) | 4 | (519) | |
Beginning Balances, shares at Dec. 31, 2020 | 39,687,000 | 802,000 | |||||||
Net income (loss) | 20 | 20 | 2 | 22 | |||||
Accrued dividend in OmniMetrix preferred shares | (1) | (1) | |||||||
Stock option compensation | 15 | 15 | 15 | ||||||
Ending Balances at Mar. 31, 2021 | $ 397 | 102,741 | 3 | (100,593) | $ (3,036) | (488) | 5 | (483) | |
Ending Balances, shares at Mar. 31, 2021 | 39,687,000 | 802,000 | |||||||
Beginning Balances at Dec. 31, 2020 | $ 397 | 102,726 | 3 | (100,613) | $ (3,036) | (523) | 4 | (519) | |
Beginning Balances, shares at Dec. 31, 2020 | 39,687,000 | 802,000 | |||||||
Net income (loss) | $ 26 | ||||||||
Proceeds from stock option exercise, shares | |||||||||
Ending Balances at Jun. 30, 2021 | $ 397 | 102,762 | 3 | (100,591) | $ (3,036) | (465) | 6 | $ (459) | |
Ending Balances, shares at Jun. 30, 2021 | 39,687,000 | 802,000 | |||||||
Beginning Balances at Mar. 31, 2021 | $ 397 | 102,741 | 3 | (100,593) | $ (3,036) | (488) | 5 | (483) | |
Beginning Balances, shares at Mar. 31, 2021 | 39,687,000 | 802,000 | |||||||
Net income (loss) | 2 | 2 | 2 | 4 | |||||
Accrued dividend in OmniMetrix preferred shares | (1) | (1) | |||||||
Stock option compensation | 21 | 21 | 21 | ||||||
Ending Balances at Jun. 30, 2021 | $ 397 | $ 102,762 | $ 3 | $ (100,591) | $ (3,036) | $ (465) | $ 6 | $ (459) | |
Ending Balances, shares at Jun. 30, 2021 | 39,687,000 | 802,000 | |||||||
[1] | Less than $1 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows provided by operating activities: | ||
Net income (loss) | $ 26 | $ (316) |
Depreciation and amortization | 37 | 21 |
Non-cash lease expense | 59 | 59 |
Stock-based compensation | 36 | 19 |
Change in operating assets and liabilities: | ||
Decrease (increase) in accounts receivable | (98) | 256 |
Increase in inventory | (127) | (10) |
Increase in deferred charges | (33) | (5) |
Decrease (increase) in other current assets and other assets | (18) | 63 |
Increase (decrease) in accounts payable and accrued expenses | 95 | (4) |
Increase (decrease) in deferred revenue | 165 | (10) |
Decrease in operating lease liability | (60) | (38) |
Increase in other current liabilities and non-current liabilities | 1 | 43 |
Net cash provided by operating activities | 83 | 78 |
Cash flows used in investing activities: | ||
Investments in technology | (42) | (88) |
Payments made for patent filings | (3) | |
Net cash used in investing activities | (42) | (91) |
Cash flows provided by financing activities: | ||
Short-term credit, net | (149) | 45 |
Loan proceeds | 462 | |
Stock option exercise proceeds | 19 | |
Net cash (used in) provided by financing activities | (149) | 526 |
Net (decrease) increase in cash | (108) | 513 |
Cash at the beginning of the year | 2,063 | 1,247 |
Cash at the end of the period | 1,955 | 1,760 |
Cash paid during the year for: | ||
Interest | 4 | 16 |
Non-cash investing and financing activities: | ||
Accrued preferred dividends to former Acorn director and/or former OmniMetrix CEO | $ 2 | $ 2 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | NOTE 1— BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements of Acorn Energy, Inc. and its subsidiaries, OmniMetrix, LLC and OMX Holdings, Inc. (collectively, “Acorn” or “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 six- and three-month periods ended June 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. 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, 2020. Concentrations of Credit Risk Financial instruments, which potentially subject the Company to concentrations of credit risk, consist principally of cash and trade accounts receivable. The Company’s cash was deposited with a U.S. bank and amounted to approximately $ 1,955,000 10% 18% 11% 90% 207,000 Basic and Diluted Net Income (Loss) Per Share Basic net income (loss) per share is computed by dividing the net income (loss) attributable to Acorn Energy, Inc. by the weighted average number of shares outstanding during the year, excluding treasury stock. Diluted net income (loss) per share is computed by dividing the net income (loss) by the weighted average number of shares outstanding plus the dilutive potential of common shares which would result from the exercise of stock options and warrants. The dilutive effects of stock options and warrants are excluded from the computation of diluted net loss per share if doing so would be antidilutive. The number of options that were excluded from the computation of diluted net loss per share, as they had an antidilutive effect, was approximately 286,000 (which have a weighted average exercise price of $ 0.79 ) and approximately 321,000 (which have a weighted average exercise price of $ 0.76 ) for the six- and three-month periods ending June 30, 2021, respectively. There were no anti-dilutive warrants. For both the six- and three-month periods ending June 30, 2020, the number of options and warrants that were excluded from the computation of diluted net loss per share, as they had an antidilutive effect, was approximately 858,000 options (which had a weighted average exercise price of $ 1.51 ) and approximately 35,000 warrants (which had a weighted average exercise price of $ 0.13 ). The following data represents the amounts used in computing EPS and the effect on net income (loss) and the weighted average number of shares of dilutive potential common stock (in thousands): SCHEDULE OF EFFECT ON NET INCOME LOSS AND WEIGHTED AVERAGE NUMBER OF SHARES 2021 2020 2021 2020 Six months ended June 30, Three months ended June 30, 2021 2020 2021 2020 Net income (loss) available to common stockholders $ 22 $ (316 ) $ 2 $ (33 ) Weighted average share outstanding: Basic 39,687 39,659 39,687 39,687 Add: Warrants 27 — 27 — Add: Stock options 199 — 221 — Diluted 39,913 39,659 39,935 39,687 Basic and diluted net income (loss) per share $ 0.00 $ (0.01 ) $ 0.00 $ (0.00 ) |
RECENT AUTHORITATIVE GUIDANCE
RECENT AUTHORITATIVE GUIDANCE | 6 Months Ended |
Jun. 30, 2021 | |
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 six- and three-month periods ended June 30, 2021, 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. |
LIQUIDITY
LIQUIDITY | 6 Months Ended |
Jun. 30, 2021 | |
Liquidity | |
LIQUIDITY | NOTE 3— LIQUIDITY At June 30, 2021, the Company had working capital of approximately $ 40 1,955 3,239 529 446 OmniMetrix is considered an essential business because it provides infrastructure support to both government and commercial sectors and across key industries. The Company has experienced minimal negative impacts due to the COVID-19 pandemic to date. Throughout the pandemic, the Company continued to realize new equipment sales (although not at the anticipated growth rate due to travel restrictions which have negatively impacted the sales closing timeline), has 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. Business travel has now started to resume and sales are returning to projected levels. As of August 5, 2021, the Company had cash of approximately $ 2,039,000 |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2021 | |
Leases | |
LEASES | NOTE 4— LEASES OmniMetrix leases office space and office equipment under operating lease agreements. The office lease expires on September 30, 2025 . The office equipment lease commenced in April 2019 and has a sixty-month term. Operating lease payments for the six months ended June 30, 2021 and 2020 were approximately $ 60 ,000 and $ 38 ,000, respectively. Operating lease payments for the three months ended June 30, 2021 and 2020 were approximately $ 30 ,000 and $ 10 ,000, respectively. The future minimum lease payments on non-cancellable operating leases as of June 30, 2021 using a discount rate of 4.5% are $ 494 ,000. Supplemental balance sheet information related to leases consisted of the following: Supplemental cash flow information related to leases consisted of the following (in thousands): SCHEDULE OF SUPPLEMENTAL CASH FLOW INFORMATION RELATED TO LEASES 2021 2020 June 30, 2021 2020 Cash paid for operating lease liabilities $ 60 $ 38 Supplemental balance sheet information related to leases consisted of the following: SCHEDULE OF SUPPLEMENTAL BALANCE SHEET INFORMATION RELATED TO LEASES 2021 Weighted average remaining lease terms for operating leases 4.23 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 unaudited condensed consolidated balance sheet as of June 30, 2021 (in thousands): SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS Twelve-month period ended June 30, 2022 $ 123 2023 126 2024 129 2025 131 2026 33 Total undiscounted cash flows 542 Less: Imputed interest (48 ) Present value of operating lease liabilities (a) $ 494 (a) Includes current portion of $ 103 |
DEBT
DEBT | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
DEBT | NOTE 5— DEBT In March 2019, OmniMetrix reinstated its loan and security agreement which provided 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 bore interest at the greater of 6% and prime plus 1.5% per year. In addition, OmniMetrix was 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% at February 28, 2021. 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 fell below $ 150 ,000 based on collections applied against the loan balance and the timing of loan draws. The monthly service charge and interest was calculated on the greater of the outstanding balance or $ 150 ,000. Interest expense for the period January 1, 2021 to February 28, 2021, when the line expired, was approximately $ 4 ,000 compared to approximately $ 16 ,000 and approximately $ 9 ,000 for the six months and three months ended June 30, 2020, respectively. OmniMetrix paid off the outstanding balance of approximately $ 149 February 28, 2021 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 6— COMMITMENTS AND CONTINGENCIES On August 19, 2019, OmniMetrix entered into an agreement with a software development partner to create and license to OmniMetrix a new software platform and application. Pursuant to this agreement, OmniMetrix paid this partner equal monthly payments over the first seven months of the term of the agreement equal to $ 200,000 In addition, OmniMetrix will pay the partner (i) a per-sensor monitoring fee for each sensor connected to the developed technology, or (ii) a percentage of any revenue received above a specified amount per sensor monitored per month in oil and gas applications only. Commencing on January 1, 2021, OmniMetrix pays the partner an annual licensing fee of $ 50,000 12,500 The Company entered into a new agreement effective May 1, 2020 for data hosting services, replacing an expiring agreement with the same vendor. The agreement has a twelve-month term and the total payments under this agreement are approximately $ 148,000 in the aggregate. In January 2021, the Company elected to renew this agreement for an additional twelve months under the same terms extending the agreement to April 30, 2022. Under the data hosting services agreement applicable during the respective periods, the Company paid approximately $ 79,000 and $ 66,000 in the six months ended June 30, 2021 and 2020, respectively, and approximately $ 42,000 and $ 30,000 in the three months ended June 30, 2021 and 2020, respectively. On March 17, 2021, the Company entered into a master services agreement for the development of a new user interface for its customer data portal. The cost of this project will be approximately $ 106,000 14,000 23,000 21,000 In addition to the above, the Company has approximately $ 563,000 |
EQUITY
EQUITY | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
EQUITY | NOTE 7— EQUITY (a) General At June 30, 2021 the Company had issued and outstanding 39,687,589 0.01 The Company is not authorized to issue preferred stock. Accordingly, no preferred stock is issued or outstanding. (b) Summary Employee Option Information The Company’s stock option plans provide for the grant to officers, directors and employees of options to purchase shares of common stock. The purchase price may be paid in cash or, if the option is “in-the-money” at the end of the option term, 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 for 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 a three-year period from the date of the grant. At June 30, 2021, 1,576,394 During the three months ended June 30, 2021, 100,000 30,000 35,000 100,000 no 62,000 No 177,000 134,000 The Company utilized the Black-Scholes option-pricing model to estimate fair value, utilizing the following assumptions for the respective years (all in weighted averages): SUMMARY OF BLACK-SCHOLES OPTION PRICING TO ESTIMATE FAIR VALUE Number of Options (in shares) Weighted Average Exercise Price Per Weighted Aggregate Outstanding at December 31, 2020 722,501 $ 0.62 4.4 $ 29,000 Granted 165,000 0.54 Exercised — — Forfeited or expired (40,255 ) 3.13 Outstanding at June 30, 2021 847,246 $ 0.48 4.7 $ 177,000 Exercisable at June 30, 2021 546,074 $ 0.50 3.9 years $ 134,000 The fair value of the options granted of approximately $ 62,000 SCHEDULE OF STOCK OPTIONS FAIR VALUE ASSUMPTIONS ESTIMATED USING BLACK-SCHOLES PRICING MODEL Risk-free interest rate .44 % Expected term of options 3.9 Expected annual volatility 101 % Expected dividend yield — % (c) 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 approximately $ 36,000 19,000 21,000 13,000 The total compensation cost related to non-vested awards not yet recognized was approximately $ 73,000 (d) 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: SUMMARY OF WARRANT ACTIVITY Number of Warrants (in shares) Weighted Weighted Outstanding at December 31, 2020 35,000 $ 0.13 2.2 Granted — — Exercised — — Forfeited or expired — — Outstanding at June 30, 2021 35,000 $ 0.13 1.71 |
SEGMENT REPORTING
SEGMENT REPORTING | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | NOTE 8— SEGMENT REPORTING As of June 30, 2021, the Company operates in two ● 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 monitoring device for industrial air compressors and dryers, and a new line of annunciators. ● The CP (Cathodic Protection) segment provides 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 and six-month periods ended June 30, 2021 and 2020 (in thousands): SUMMARY OF SEGMENTED DATA PG CP Total Six months ended June 30, 2021: Revenues from external customers $ 2,837 $ 479 $ 3,316 Segment gross profit 2,150 282 2,432 Depreciation and amortization 32 5 37 Segment income(loss) before income taxes $ 510 $ (17 ) $ 493 Six months ended June 30, 2020: Revenues from external customers $ 2,371 $ 435 $ 2,806 Segment gross profit 1,720 224 1,944 Depreciation and amortization 17 4 21 Segment income(loss) before income taxes $ 204 $ (72 ) $ 132 Three months ended June 30, 2021: Revenues from external customers $ 1,379 $ 232 $ 1,611 Segment gross profit 1,082 140 1,222 Depreciation and amortization 19 3 22 Segment income(loss) before income taxes $ 234 $ (4 ) $ 230 Three months ended June 30, 2020: Revenues from external customers $ 1,262 $ 206 $ 1,468 Segment gross profit 915 107 1,022 Depreciation and amortization 4 1 5 Segment income(loss) before income taxes $ 199 $ (10 ) $ 189 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 does not review the assets by segment. Reconciliation of Segment Income (Loss) to Consolidated Net Income (Loss) Before Income Taxes SCHEDULE OF RECONCILIATION OF SEGMENT DATA TO CONSOLIDATED NET INCOME LOSS BEFORE INCOME TAXES Six months ended June 30, Three months ended June 30, 2021 2020 2021 2020 Total net income before income taxes for reportable segments $ 493 $ 132 $ 230 $ 189 Unallocated cost of corporate headquarters (467 ) (448 ) (226 ) (221 ) Consolidated net income (loss) before income taxes $ 26 $ (316 ) $ 4 $ (32 ) |
REVENUE
REVENUE | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | NOTE 9— REVENUE The following table disaggregates the Company’s revenue for the three-and-six-month periods ended June 30, 2021 and 2020 (in thousands): SCHEDULE OF DISAGGREGATES OF REVENUE Hardware Monitoring Total Six months ended June 30, 2021: PG Segment $ 942 $ 1,895 $ 2,837 CP Segment 349 130 479 Total Revenue $ 1,291 $ 2,025 $ 3,316 Hardware Monitoring Total Six months ended June 30, 2020: PG Segment $ 645 $ 1,726 $ 2,371 CP Segment 308 127 435 Total Revenue $ 953 $ 1,853 $ 2,806 Hardware Monitoring Total Three months ended June 30, 2021: PG Segment $ 425 $ 954 $ 1,379 CP Segment 169 63 232 Total Revenue $ 594 $ 1,017 $ 1,611 Hardware Monitoring Total Three months ended June 30, 2020: PG Segment $ 368 $ 894 $ 1,262 CP Segment 142 64 206 Total Revenue $ 510 $ 958 $ 1,468 Deferred revenue activity for the six months ended June 30, 2021 can be seen in the table below (in thousands): SCHEDULE OF DEFERRED REVENUE ACTIVITY Hardware Monitoring Total Balance at December 31, 2020 $ 2,576 $ 1,978 $ 4,554 Additions during the period 1,068 2,019 3,087 Recognized as revenue (898 ) (2,024 ) (2,922 ) Balance at June 30, 2021 $ 2,746 $ 1,973 $ 4,719 Amounts to be recognized as revenue in the twelve-month-period ending: June 30, 2022 $ 1,507 $ 1,732 $ 3,239 June 30, 2023 905 234 1,139 June 30, 2024 and thereafter 334 7 341 Total $ 2,746 $ 1,973 $ 4,719 Other revenue of approximately $ 394,000 Deferred charges relate only to the sale of equipment. Deferred charges activity for the six months ended June 30, 2021 can be seen in the table below (in thousands): SCHEDULE OF DEFERRED CHARGES ACTIVITY Balance at December 31, 2020 $ 1,306 Additions, net of adjustments, during the period 472 Recognized as cost of sales (467 ) Balance at June 30, 2021 $ 1,311 Amounts to be recognized as cost of sales in the twelve-month-period ending: June 30, 2022 $ 738 June 30, 2023 425 * June 30, 2024 and thereafter 148 * $ 1,311 * Amounts included in other assets in the Company’s unaudited condensed consolidated balance sheets at June 30, 2021. Other cost of goods sold (COGS) recognized of approximately $ 231,000 is related to accessories, repairs, and other miscellaneous charges that are recognized to revenue when sold and are not deferred in addition to $ 186,000 in monitoring COGS which is not deferred. The following table provides a reconciliation of the Company’s sales commissions contract assets for the six-month period ended June 30, 2021 (in thousands): SCHEDULE OF SALES COMMISSIONS CONTRACT ASSETS Hardware Monitoring Total Balance at December 31, 2020 $ 136 $ 41 $ 177 Additions during the period 88 15 103 Amortization of sales commissions (48 ) (10 ) (58 ) Balance at June 30, 2021 $ 176 $ 46 $ 222 The capitalized sales commissions are included in other current assets (approximately $ 107,000 115,000 90,000 87,000 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 10— SUBSEQUENT EVENTS On July 6, 2021, the Company entered into an agreement with King Industrial Reality, Inc. to sublease 1,900 21,000 2,375 |
BASIS OF PRESENTATION (Tables)
BASIS OF PRESENTATION (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
SCHEDULE OF EFFECT ON NET INCOME LOSS AND WEIGHTED AVERAGE NUMBER OF SHARES | The following data represents the amounts used in computing EPS and the effect on net income (loss) and the weighted average number of shares of dilutive potential common stock (in thousands): SCHEDULE OF EFFECT ON NET INCOME LOSS AND WEIGHTED AVERAGE NUMBER OF SHARES 2021 2020 2021 2020 Six months ended June 30, Three months ended June 30, 2021 2020 2021 2020 Net income (loss) available to common stockholders $ 22 $ (316 ) $ 2 $ (33 ) Weighted average share outstanding: Basic 39,687 39,659 39,687 39,687 Add: Warrants 27 — 27 — Add: Stock options 199 — 221 — Diluted 39,913 39,659 39,935 39,687 Basic and diluted net income (loss) per share $ 0.00 $ (0.01 ) $ 0.00 $ (0.00 ) |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Leases | |
SCHEDULE OF SUPPLEMENTAL CASH FLOW INFORMATION RELATED TO LEASES | Supplemental cash flow information related to leases consisted of the following (in thousands): SCHEDULE OF SUPPLEMENTAL CASH FLOW INFORMATION RELATED TO LEASES 2021 2020 June 30, 2021 2020 Cash paid for operating lease liabilities $ 60 $ 38 |
SCHEDULE OF SUPPLEMENTAL BALANCE SHEET INFORMATION RELATED TO LEASES | Supplemental balance sheet information related to leases consisted of the following: SCHEDULE OF SUPPLEMENTAL BALANCE SHEET INFORMATION RELATED TO LEASES 2021 Weighted average remaining lease terms for operating leases 4.23 |
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 unaudited condensed consolidated balance sheet as of June 30, 2021 (in thousands): SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS Twelve-month period ended June 30, 2022 $ 123 2023 126 2024 129 2025 131 2026 33 Total undiscounted cash flows 542 Less: Imputed interest (48 ) Present value of operating lease liabilities (a) $ 494 (a) Includes current portion of $ 103 |
EQUITY (Tables)
EQUITY (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
SUMMARY OF BLACK-SCHOLES OPTION PRICING TO ESTIMATE FAIR VALUE | The Company utilized the Black-Scholes option-pricing model to estimate fair value, utilizing the following assumptions for the respective years (all in weighted averages): SUMMARY OF BLACK-SCHOLES OPTION PRICING TO ESTIMATE FAIR VALUE Number of Options (in shares) Weighted Average Exercise Price Per Weighted Aggregate Outstanding at December 31, 2020 722,501 $ 0.62 4.4 $ 29,000 Granted 165,000 0.54 Exercised — — Forfeited or expired (40,255 ) 3.13 Outstanding at June 30, 2021 847,246 $ 0.48 4.7 $ 177,000 Exercisable at June 30, 2021 546,074 $ 0.50 3.9 years $ 134,000 |
SCHEDULE OF STOCK OPTIONS FAIR VALUE ASSUMPTIONS ESTIMATED USING BLACK-SCHOLES PRICING MODEL | The fair value of the options granted of approximately $ 62,000 SCHEDULE OF STOCK OPTIONS FAIR VALUE ASSUMPTIONS ESTIMATED USING BLACK-SCHOLES PRICING MODEL Risk-free interest rate .44 % Expected term of options 3.9 Expected annual volatility 101 % 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: SUMMARY OF WARRANT ACTIVITY Number of Warrants (in shares) Weighted Weighted Outstanding at December 31, 2020 35,000 $ 0.13 2.2 Granted — — Exercised — — Forfeited or expired — — Outstanding at June 30, 2021 35,000 $ 0.13 1.71 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
SUMMARY OF SEGMENTED DATA | The following tables represent segmented data for the three-month and six-month periods ended June 30, 2021 and 2020 (in thousands): SUMMARY OF SEGMENTED DATA PG CP Total Six months ended June 30, 2021: Revenues from external customers $ 2,837 $ 479 $ 3,316 Segment gross profit 2,150 282 2,432 Depreciation and amortization 32 5 37 Segment income(loss) before income taxes $ 510 $ (17 ) $ 493 Six months ended June 30, 2020: Revenues from external customers $ 2,371 $ 435 $ 2,806 Segment gross profit 1,720 224 1,944 Depreciation and amortization 17 4 21 Segment income(loss) before income taxes $ 204 $ (72 ) $ 132 Three months ended June 30, 2021: Revenues from external customers $ 1,379 $ 232 $ 1,611 Segment gross profit 1,082 140 1,222 Depreciation and amortization 19 3 22 Segment income(loss) before income taxes $ 234 $ (4 ) $ 230 Three months ended June 30, 2020: Revenues from external customers $ 1,262 $ 206 $ 1,468 Segment gross profit 915 107 1,022 Depreciation and amortization 4 1 5 Segment income(loss) before income taxes $ 199 $ (10 ) $ 189 |
SCHEDULE OF RECONCILIATION OF SEGMENT DATA TO CONSOLIDATED NET INCOME LOSS BEFORE INCOME TAXES | Reconciliation of Segment Income (Loss) to Consolidated Net Income (Loss) Before Income Taxes SCHEDULE OF RECONCILIATION OF SEGMENT DATA TO CONSOLIDATED NET INCOME LOSS BEFORE INCOME TAXES Six months ended June 30, Three months ended June 30, 2021 2020 2021 2020 Total net income before income taxes for reportable segments $ 493 $ 132 $ 230 $ 189 Unallocated cost of corporate headquarters (467 ) (448 ) (226 ) (221 ) Consolidated net income (loss) before income taxes $ 26 $ (316 ) $ 4 $ (32 ) |
REVENUE (Tables)
REVENUE (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
SCHEDULE OF DISAGGREGATES OF REVENUE | The following table disaggregates the Company’s revenue for the three-and-six-month periods ended June 30, 2021 and 2020 (in thousands): SCHEDULE OF DISAGGREGATES OF REVENUE Hardware Monitoring Total Six months ended June 30, 2021: PG Segment $ 942 $ 1,895 $ 2,837 CP Segment 349 130 479 Total Revenue $ 1,291 $ 2,025 $ 3,316 Hardware Monitoring Total Six months ended June 30, 2020: PG Segment $ 645 $ 1,726 $ 2,371 CP Segment 308 127 435 Total Revenue $ 953 $ 1,853 $ 2,806 Hardware Monitoring Total Three months ended June 30, 2021: PG Segment $ 425 $ 954 $ 1,379 CP Segment 169 63 232 Total Revenue $ 594 $ 1,017 $ 1,611 Hardware Monitoring Total Three months ended June 30, 2020: PG Segment $ 368 $ 894 $ 1,262 CP Segment 142 64 206 Total Revenue $ 510 $ 958 $ 1,468 |
SCHEDULE OF DEFERRED REVENUE ACTIVITY | Deferred revenue activity for the six months ended June 30, 2021 can be seen in the table below (in thousands): SCHEDULE OF DEFERRED REVENUE ACTIVITY Hardware Monitoring Total Balance at December 31, 2020 $ 2,576 $ 1,978 $ 4,554 Additions during the period 1,068 2,019 3,087 Recognized as revenue (898 ) (2,024 ) (2,922 ) Balance at June 30, 2021 $ 2,746 $ 1,973 $ 4,719 Amounts to be recognized as revenue in the twelve-month-period ending: June 30, 2022 $ 1,507 $ 1,732 $ 3,239 June 30, 2023 905 234 1,139 June 30, 2024 and thereafter 334 7 341 Total $ 2,746 $ 1,973 $ 4,719 |
SCHEDULE OF DEFERRED CHARGES ACTIVITY | Deferred charges relate only to the sale of equipment. Deferred charges activity for the six months ended June 30, 2021 can be seen in the table below (in thousands): SCHEDULE OF DEFERRED CHARGES ACTIVITY Balance at December 31, 2020 $ 1,306 Additions, net of adjustments, during the period 472 Recognized as cost of sales (467 ) Balance at June 30, 2021 $ 1,311 Amounts to be recognized as cost of sales in the twelve-month-period ending: June 30, 2022 $ 738 June 30, 2023 425 * June 30, 2024 and thereafter 148 * $ 1,311 * Amounts included in other assets in the Company’s unaudited condensed consolidated balance sheets at June 30, 2021. |
SCHEDULE OF SALES COMMISSIONS CONTRACT ASSETS | The following table provides a reconciliation of the Company’s sales commissions contract assets for the six-month period ended June 30, 2021 (in thousands): SCHEDULE OF SALES COMMISSIONS CONTRACT ASSETS Hardware Monitoring Total Balance at December 31, 2020 $ 136 $ 41 $ 177 Additions during the period 88 15 103 Amortization of sales commissions (48 ) (10 ) (58 ) Balance at June 30, 2021 $ 176 $ 46 $ 222 |
SCHEDULE OF EFFECT ON NET INCOM
SCHEDULE OF EFFECT ON NET INCOME LOSS AND WEIGHTED AVERAGE NUMBER OF SHARES (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Accounting Policies [Abstract] | ||||
Net income (loss) available to common stockholders | $ 2 | $ (33) | $ 22 | $ (316) |
Basic | 39,687,000 | 39,687,000 | 39,687,000 | 39,659,000 |
Add: Warrants | 27,000 | 27,000 | ||
Add: Stock options | 221,000 | 199,000 | ||
Diluted | 39,935,000 | 39,687,000 | 39,913,000 | 39,659,000 |
Basic and diluted net income (loss) per share | $ 0 | $ 0 | $ 0 | $ (0.01) |
BASIS OF PRESENTATION (Details
BASIS OF PRESENTATION (Details Narrative) - USD ($) | Aug. 05, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 |
Product Information [Line Items] | ||||||
Cash | $ 1,955,000 | $ 1,955,000 | $ 2,063,000 | |||
Stock Options [Member] | ||||||
Product Information [Line Items] | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 321,000 | 286,000 | 858,000 | |||
Weighted average exercise price of options and warrants | $ 0 | $ 0.79 | $ 1 | |||
Warrant [Member] | ||||||
Product Information [Line Items] | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 35,000 | |||||
Weighted average exercise price of options and warrants | $ 0.13 | |||||
Subsequent Event [Member] | ||||||
Product Information [Line Items] | ||||||
Collection of account receivable, percentage | 90.00% | |||||
Proceeds from account receivable | $ 207,000 | |||||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | One Customer [Member] | ||||||
Product Information [Line Items] | ||||||
Concentrations of risk, percentage | 10.00% | |||||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer One [Member] | ||||||
Product Information [Line Items] | ||||||
Concentrations of risk, percentage | 18.00% | |||||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer Two [Member] | ||||||
Product Information [Line Items] | ||||||
Concentrations of risk, percentage | 11.00% |
LIQUIDITY (Details Narrative)
LIQUIDITY (Details Narrative) - USD ($) | 6 Months Ended | ||
Jun. 30, 2021 | Aug. 05, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | |||
Working capital | $ 40,000 | ||
Cash | 1,955,000 | $ 2,063,000 | |
Deferred revenue | 3,239,000 | $ 3,214,000 | |
Cash | $ 2,039,000 | ||
OmniMetrix, LLC [Member] | |||
Business Acquisition [Line Items] | |||
Income from operations | 529,000 | ||
Income from operations used by corporate headquarters | $ 446,000 |
SCHEDULE OF SUPPLEMENTAL CASH F
SCHEDULE OF SUPPLEMENTAL CASH FLOW INFORMATION RELATED TO LEASES (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Leases | ||
Cash paid for operating lease liabilities | $ 60 | $ 38 |
SCHEDULE OF SUPPLEMENTAL BALANC
SCHEDULE OF SUPPLEMENTAL BALANCE SHEET INFORMATION RELATED TO LEASES (Details) | Jun. 30, 2021 |
Leases | |
Weighted average remaining lease terms for operating leases | 4 years 2 months 23 days |
SCHEDULE OF FUTURE MINIMUM LEAS
SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS (Details) $ in Thousands | Jun. 30, 2021USD ($) | |
Leases | ||
2022 | $ 123 | |
2023 | 126 | |
2024 | 129 | |
2025 | 131 | |
2026 | 33 | |
Total undiscounted cash flows | 542 | |
Less: Imputed interest | (48) | |
Operating Lease, Liability | $ 494 | [1] |
[1] | Includes current portion of $ 103 |
SCHEDULE OF FUTURE MINIMUM LE_2
SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS (Details) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Leases | ||
Current operating lease | $ 103 | $ 99 |
LEASES (Details Narrative)
LEASES (Details Narrative) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||
Operating Lease, Liability | [1] | $ 494 | $ 494 | |||
Omni Metrix Holdings, Inc. [Member] | ||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||
Lessee, Operating Lease, Discount Rate | 4.50% | 4.50% | ||||
Operating Lease, Liability | $ 494 | $ 494 | ||||
Operating Lease Agreements [Member] | Omni Metrix Holdings, Inc. [Member] | ||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||
Lease Expiration Date | Sep. 30, 2025 | |||||
Lessee, Operating Lease, Description | The office equipment lease | |||||
Operating Lease, Payments | $ 30 | $ 10 | $ 60 | $ 38 | ||
[1] | Includes current portion of $ 103 |
DEBT (Details Narrative)
DEBT (Details Narrative) - USD ($) $ in Thousands | 1 Months Ended | 2 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Feb. 28, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Entity Listings [Line Items] | ||||||
Interest Expense | $ 4 | $ 9 | $ 16 | |||
Debt instrument expiration date | $ 149 | |||||
OmniMetrix Technologies [Member] | ||||||
Entity Listings [Line Items] | ||||||
Debt instrument expiration date | $ 149 | |||||
Debt instrument expiration date | Feb. 28, 2021 | |||||
OmniMetrix Technologies [Member] | Share-based Compensation Arrangement by Share-based Payment Award, Options, Shares Issued for Net Exercises in Period | ||||||
Entity Listings [Line Items] | ||||||
Right-of-use assets, net of deferred rent | 75.00% | |||||
Dividends paid [Table Text Block] | $ 1,000 | |||||
Debt Instrument, Interest Rate Terms | Debt incurred under this financing arrangement bore interest at the greater of 6% and prime plus 1.5% per year. | |||||
Line of Credit Facility, Commitment Fee Percentage | 0.75% | |||||
Debt Instrument, Interest Rate, Effective Percentage | 15.00% | |||||
Restructuring costs - abandonment of fixed assets | $ 150 | |||||
Regular dividend paid per share | $ 150 | $ 150 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) | Aug. 19, 2019 | Mar. 17, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 |
New Agreement [Member] | ||||||
Entity Listings [Line Items] | ||||||
Payments for Loans | $ 148,000 | |||||
Unallocated DSIT segment costs | $ 42,000 | $ 30,000 | 79,000 | $ 66,000 | ||
Master Services Agreement [Member] | ||||||
Entity Listings [Line Items] | ||||||
Cost of the project | $ 106,000 | |||||
Monthly installments | 14,000 | $ 23,000 | ||||
Debt Instrument increase | 21,000 | |||||
Contractual obligations related to software agreements, operating leases and contractual services | $ 563,000 | |||||
OmniMetrix Technologies [Member] | ||||||
Entity Listings [Line Items] | ||||||
Monthly payments | $ 200,000 | |||||
Partner sensor transaction description | In addition, OmniMetrix will pay the partner (i) a per-sensor monitoring fee for each sensor connected to the developed technology, or (ii) a percentage of any revenue received above a specified amount per sensor monitored per month in oil and gas applications only. Commencing on January 1, 2021, OmniMetrix pays the partner an annual licensing fee of $50,000 which is paid in quarterly increments of $12,500. The per-sensor monitoring fees have not yet commenced. | |||||
Annual licensing fee | $ 50,000 | |||||
Monthly licensing fee | $ 12,500 |
SUMMARY OF BLACK-SCHOLES OPTION
SUMMARY OF BLACK-SCHOLES OPTION PRICING TO ESTIMATE FAIR VALUE (Details) - USD ($) | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Number of Options (in shares), Outstanding at beginning of year | 722,501 |
Weighted Average Exercise Price Per Share, Outstanding at beginning of year | $ 0.62 |
Weighted average remaining contractual life at begining | 4 years 4 months 24 days |
Aggregate intrinsic value at begining of year | $ 29,000 |
Number of Options (in shares), Granted at market price | 165,000 |
Weighted Average Exercise Price Per Share, Granted | $ 0.54 |
Number of Options (in shares), Exercised | |
Weighted Average Exercise Price Per Share, Exercised | |
Number of Options (in shares), Forfeited or expired | (40,255) |
Weighted Average Exercise Price Per Share, Forfeited or expired | $ 3.13 |
Number of Options (in shares), Outstanding at end of year | 847,246 |
Weighted Average Exercise Price Per Share, Outstanding at end of year | $ 0.48 |
Weighted average remaining contractual life at end | 4 years 8 months 12 days |
Aggregate intrinsic value at end of year | $ 177,000 |
Number of Options (in shares), Exercisable at end of year | 546,074 |
Weighted Average Exercise Price Per Share, Exercisable at end of year | $ 0.50 |
[custom:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableOutstandingWeightedAverageRemainingContractualTerm] | 3 years 10 months 24 days |
Aggregate intrinsic value at exercisable | $ 134,000 |
SCHEDULE OF STOCK OPTIONS FAIR
SCHEDULE OF STOCK OPTIONS FAIR VALUE ASSUMPTIONS ESTIMATED USING BLACK-SCHOLES PRICING MODEL (Details) | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Risk-free interest rate | 0.44% |
Expected term of options, in years | 3 years 10 months 24 days |
Expected annual volatility | 101.00% |
Expected dividend yield |
SUMMARY OF WARRANT ACTIVITY (De
SUMMARY OF WARRANT ACTIVITY (Details) | 6 Months Ended |
Jun. 30, 2021$ / sharesshares | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Weighted average remaining contractual life at begining | 3 years 10 months 24 days |
Weighted average remaining contractual life at end | 4 years 8 months 12 days |
Warrant [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Number of Warrants (in Shares), Outstanding at beginning balance | shares | 35,000 |
Weighted Average Exercise Price Per Share, Outstanding at beginning balance | $ / shares | $ 0.13 |
Weighted average remaining contractual life at begining | 2 years 2 months 12 days |
Number of Warrants (in Shares), Granted | shares | |
Weighted Average Exercise Price Per Share, Granted | $ / shares | |
Number of Warrants (in Shares), Exercised | shares | |
Weighted Average Exercise Price Per Share, Exercised | $ / shares | |
Number of Warrants (in Shares), Forfeited or expired | shares | |
Weighted Average Exercise Price Per Share, Forfeited or expired | $ / shares | |
Number of Warrants (in Shares), Outstanding at end balance | shares | 35,000 |
Weighted Average Exercise Price Per Share, Outstanding at end balance | $ / shares | $ 0.13 |
Weighted average remaining contractual life at end | 1 year 8 months 15 days |
EQUITY (Details Narrative)
EQUITY (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Subsidiary, Sale of Stock [Line Items] | |||||
Common stock, shares issued | 39,687,589 | 39,687,589 | 39,687,589 | ||
Common stock, shares outstanding | 39,687,589 | 39,687,589 | |||
Common stock par value | $ 0.01 | $ 0.01 | $ 0.01 | ||
Number of options granted during period | 165,000 | ||||
Fair value of options granted during period | $ 62,000 | ||||
Number of options exercised | |||||
Intrinsic value of options outstanding | $ 177,000 | $ 177,000 | $ 29,000 | ||
Intrinsic value of options exercisable | 134,000 | 134,000 | |||
Compensation cost, non-vested awards not yet recognized | 73,000 | 73,000 | |||
Selling, General and Administrative Expenses [Member] | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Stock based compensation expense | $ 21,000 | $ 13,000 | $ 36,000 | $ 19,000 | |
Non Employee Stock Option [Member] | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Number of options exercised | 0 | 0 | |||
Companys CFO [Member] | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Number of options granted during period | 100,000 | 100,000 | |||
Directors [Member] | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Number of options granted during period | 30,000 | ||||
Companys CEO [Member] | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Number of options granted during period | 35,000 | ||||
Non Employee [Member] | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Number of options granted during period | 0 | 0 | |||
Amended And Restated Two Thousand Six Stockincentive Plan [Member] | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Number of options available for grant | 1,576,394 | 1,576,394 |
SUMMARY OF SEGMENTED DATA (Deta
SUMMARY OF SEGMENTED DATA (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||
Revenues from external customers | $ 1,611 | $ 1,468 | $ 3,316 | $ 2,806 |
Segment gross profit | 1,222 | 1,022 | 2,432 | 1,944 |
Depreciation and amortization | 22 | 5 | 37 | 21 |
Segment income(loss) before income taxes | 230 | 189 | 493 | 132 |
P G [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from external customers | 1,379 | 1,262 | 2,837 | 2,371 |
Segment gross profit | 1,082 | 915 | 2,150 | 1,720 |
Depreciation and amortization | 19 | 4 | 32 | 17 |
Segment income(loss) before income taxes | 234 | 199 | 510 | 204 |
C P [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from external customers | 232 | 206 | 479 | 435 |
Segment gross profit | 140 | 107 | 282 | 224 |
Depreciation and amortization | 3 | 1 | 5 | 4 |
Segment income(loss) before income taxes | $ (4) | $ (10) | $ (17) | $ (72) |
SCHEDULE OF RECONCILIATION OF S
SCHEDULE OF RECONCILIATION OF SEGMENT DATA TO CONSOLIDATED NET INCOME LOSS BEFORE INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Segment Reporting [Abstract] | ||||
Total net income before income taxes for reportable segments | $ 230 | $ 189 | $ 493 | $ 132 |
Unallocated cost of corporate headquarters | (226) | (221) | (467) | (448) |
Consolidated net income (loss) before income taxes | $ 4 | $ (32) | $ 26 | $ (316) |
SEGMENT REPORTING (Details Narr
SEGMENT REPORTING (Details Narrative) | 6 Months Ended |
Jun. 30, 2021Segments | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
SCHEDULE OF DISAGGREGATES OF RE
SCHEDULE OF DISAGGREGATES OF REVENUE (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | $ 1,611 | $ 1,468 | $ 3,316 | $ 2,806 |
Hardware [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 594 | 510 | 1,291 | 953 |
Monitoring [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 1,017 | 958 | 2,025 | 1,853 |
P G [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 1,379 | 1,262 | 2,837 | 2,371 |
P G [Member] | Hardware [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 425 | 368 | 942 | 645 |
P G [Member] | Monitoring [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 954 | 894 | 1,895 | 1,726 |
C P [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 232 | 206 | 479 | 435 |
C P [Member] | Hardware [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 169 | 142 | 349 | 308 |
C P [Member] | Monitoring [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | $ 63 | $ 64 | $ 130 | $ 127 |
SCHEDULE OF DEFERRED REVENUE AC
SCHEDULE OF DEFERRED REVENUE ACTIVITY (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Disaggregation of Revenue [Line Items] | |
Balance at December 31, 2020 | $ 4,554 |
Additions during the period | 3,087 |
Recognized as revenue | (2,922) |
Balance at June 30, 2021 | 4,719 |
June 30, 2022 | 3,239 |
June 30, 2023 | 1,139 |
June 30, 2024 and thereafter | 341 |
Total | 4,719 |
Hardware [Member] | |
Disaggregation of Revenue [Line Items] | |
Balance at December 31, 2020 | 2,576 |
Additions during the period | 1,068 |
Recognized as revenue | (898) |
Balance at June 30, 2021 | 2,746 |
June 30, 2022 | 1,507 |
June 30, 2023 | 905 |
June 30, 2024 and thereafter | 334 |
Total | 2,746 |
Monitoring [Member] | |
Disaggregation of Revenue [Line Items] | |
Balance at December 31, 2020 | 1,978 |
Additions during the period | 2,019 |
Recognized as revenue | (2,024) |
Balance at June 30, 2021 | 1,973 |
June 30, 2022 | 1,732 |
June 30, 2023 | 234 |
June 30, 2024 and thereafter | 7 |
Total | $ 1,973 |
SCHEDULE OF DEFERRED CHARGES AC
SCHEDULE OF DEFERRED CHARGES ACTIVITY (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021USD ($) | ||
Revenue from Contract with Customer [Abstract] | ||
Balance at December 31, 2020 | $ 1,306 | |
Additions, net of adjustments, during the period | 472 | |
Recognized as cost of sales | 467 | |
Balance at June 30, 2021 | 1,311 | |
June 30, 2022 | 738 | |
June 30, 2023 | 425 | [1] |
June 30, 2024 and thereafter | 148 | [1] |
Total | $ 1,311 | |
[1] | Amounts included in other assets in the Company’s unaudited condensed consolidated balance sheets at June 30, 2021. |
SCHEDULE OF SALES COMMISSIONS C
SCHEDULE OF SALES COMMISSIONS CONTRACT ASSETS (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Disaggregation of Revenue [Line Items] | |
Balance at December 31, 2020 | $ 177 |
Additions during the period | 103 |
Amortization of sales commissions | (58) |
Balance at June 30, 2021 | 222 |
Hardware [Member] | |
Disaggregation of Revenue [Line Items] | |
Balance at December 31, 2020 | 136 |
Additions during the period | 88 |
Amortization of sales commissions | (48) |
Balance at June 30, 2021 | 176 |
Monitoring [Member] | |
Disaggregation of Revenue [Line Items] | |
Balance at December 31, 2020 | 41 |
Additions during the period | 15 |
Amortization of sales commissions | (10) |
Balance at June 30, 2021 | $ 46 |
REVENUE (Details Narrative)
REVENUE (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||||
Revenue | $ 1,611,000 | $ 1,468,000 | $ 3,316,000 | $ 2,806,000 | |
Cost of Goods and Services Sold | 389,000 | $ 446,000 | 884,000 | $ 862,000 | |
Other current assets | 144,000 | 144,000 | $ 126,000 | ||
Capitalized Sales Commissions [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Other current assets | 107,000 | 107,000 | 90,000 | ||
Other assets | $ 115,000 | 115,000 | $ 87,000 | ||
Other Revenue and Miscellaneous Charges [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 394,000 | ||||
Other COGS and Miscellaneous Charges [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Cost of Goods and Services Sold | 231,000 | ||||
Monitoring Services [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Cost of Goods and Services Sold | $ 186,000 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - Subsequent Event [Member] | Jul. 06, 2021USD ($)ft² |
Subsequent Event [Line Items] | |
Area of land | 21,000 |
Sublease payment | $ | $ 2,375 |
King Industrial Reality Inc [Member] | |
Subsequent Event [Line Items] | |
Area of land | 1,900 |