Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2022 | Aug. 09, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2022 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2022 | |
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, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash | $ 1,259,000 | $ 1,722,000 |
Accounts receivable, net | 584,000 | 876,000 |
Inventory, net | 915,000 | 617,000 |
Deferred cost of goods sold | 858,000 | 799,000 |
Other current assets | 221,000 | 229,000 |
Total current assets | 3,837,000 | 4,243,000 |
Property and equipment, net | 687,000 | 517,000 |
Right-of-use assets, net | 349,000 | 399,000 |
Deferred cost of goods sold | 772,000 | 714,000 |
Other assets | 178,000 | 169,000 |
Total assets | 5,823,000 | 6,042,000 |
Current liabilities: | ||
Accounts payable | 340,000 | 457,000 |
Accrued expenses | 156,000 | 164,000 |
Deferred revenue | 3,642,000 | 3,541,000 |
Current operating lease liabilities | 111,000 | 107,000 |
Other current liabilities | 43,000 | 34,000 |
Total current liabilities | 4,292,000 | 4,303,000 |
Long-term liabilities: | ||
Deferred revenue | 1,993,000 | 1,852,000 |
Long-term operating lease liabilities | 279,000 | 336,000 |
Other long-term liabilities | 14,000 | 12,000 |
Total long-term liabilities | 2,286,000 | 2,200,000 |
Commitments and contingencies (Note 5) | ||
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, 2022 and December 31, 2021 | 397,000 | 397,000 |
Additional paid-in capital | 102,857,000 | 102,804,000 |
Accumulated deficit | (100,980,000) | (100,634,000) |
Treasury stock, at cost – 801,920 shares at June 30, 2022 and December 31, 2021 | (3,036,000) | (3,036,000) |
Total Acorn Energy, Inc. shareholders’ deficit | (762,000) | (469,000) |
Non-controlling interest | 7,000 | 8,000 |
Total deficit | (755,000) | (461,000) |
Total liabilities and deficit | $ 5,823,000 | $ 6,042,000 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2022 | Dec. 31, 2021 |
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 ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Income Statement [Abstract] | |||||
Revenue | $ 1,621 | $ 1,611 | $ 3,372 | $ 3,316 | |
Cost of sales | 375 | 389 | 868 | 884 | |
Gross profit | 1,246 | 1,222 | 2,504 | 2,432 | |
Operating expenses: | |||||
Research and development expense | 212 | 175 | 410 | 353 | |
Selling, general and administrative expense | 1,205 | 1,042 | 2,387 | 2,048 | |
Impairment of software | 51 | 51 | |||
Total operating expenses | 1,468 | 1,217 | 2,848 | 2,401 | |
Operating (loss) income | (222) | 5 | (344) | 31 | |
Finance expense, net | (1) | (1) | (1) | (5) | |
(Loss) income before income taxes | (223) | 4 | (345) | 26 | |
Income tax expense | |||||
Net (loss) income | (223) | 4 | (345) | 26 | |
Non-controlling interest share of net income | [1] | (2) | (1) | (4) | |
Net (loss) income attributable to Acorn Energy, Inc. shareholders | $ (223) | $ 2 | $ (346) | $ 22 | |
Basic and diluted net (loss) income per share attributable to Acorn Energy, Inc. shareholders: | $ (0.01) | $ 0 | $ (0.01) | $ 0 | |
Weighted average number of shares outstanding attributable to Acorn Energy, Inc. shareholders – basic and diluted | |||||
Basic | 39,688 | 39,688 | 39,688 | 39,688 | |
Diluted | 39,688 | 39,936 | 39,688 | 39,914 | |
[1]Less than $1 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Deficit (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Parent [Member] | Noncontrolling Interest [Member] | |
Balances as of March 31, 2021 at Dec. 31, 2020 | $ (519) | $ 397 | $ 102,729 | $ (100,613) | $ (3,036) | $ (523) | $ 4 | |
Beginning balance, shares at Dec. 31, 2020 | 39,688 | 802 | ||||||
Net income (loss) | 22 | 20 | 20 | 2 | ||||
Accrued dividend in OmniMetrix preferred shares | (1) | (1) | ||||||
Stock option compensation | 15 | 15 | 15 | |||||
Ending balance at Mar. 31, 2021 | (483) | $ 397 | 102,744 | (100,593) | $ (3,036) | (488) | 5 | |
Ending balance, shares at Mar. 31, 2021 | 39,688 | 802 | ||||||
Balances as of March 31, 2021 at Dec. 31, 2020 | (519) | $ 397 | 102,729 | (100,613) | $ (3,036) | (523) | 4 | |
Beginning balance, shares at Dec. 31, 2020 | 39,688 | 802 | ||||||
Net income (loss) | 26 | |||||||
Ending balance at Jun. 30, 2021 | (459) | $ 397 | 102,765 | (100,591) | $ (3,036) | (465) | 6 | |
Ending balance, shares at Jun. 30, 2021 | 39,688 | 802 | ||||||
Balances as of March 31, 2021 at Mar. 31, 2021 | (483) | $ 397 | 102,744 | (100,593) | $ (3,036) | (488) | 5 | |
Beginning balance, shares at Mar. 31, 2021 | 39,688 | 802 | ||||||
Net income (loss) | 4 | 2 | 2 | 2 | ||||
Accrued dividend in OmniMetrix preferred shares | (1) | (1) | ||||||
Stock option compensation | 21 | 21 | 21 | |||||
Ending balance at Jun. 30, 2021 | (459) | $ 397 | 102,765 | (100,591) | $ (3,036) | (465) | 6 | |
Ending balance, shares at Jun. 30, 2021 | 39,688 | 802 | ||||||
Balances as of March 31, 2021 at Dec. 31, 2021 | (461) | $ 397 | 102,804 | (100,634) | $ (3,036) | (469) | 8 | |
Beginning balance, shares at Dec. 31, 2021 | 39,688 | 802 | ||||||
Net income (loss) | (122) | (123) | (123) | 1 | ||||
Accrued dividend in OmniMetrix preferred shares | (1) | (1) | ||||||
Stock option compensation | 31 | 31 | 31 | |||||
Ending balance at Mar. 31, 2022 | (553) | $ 397 | 102,835 | (100,757) | $ (3,036) | (561) | 8 | |
Ending balance, shares at Mar. 31, 2022 | 39,688 | 802 | ||||||
Balances as of March 31, 2021 at Dec. 31, 2021 | (461) | $ 397 | 102,804 | (100,634) | $ (3,036) | (469) | 8 | |
Beginning balance, shares at Dec. 31, 2021 | 39,688 | 802 | ||||||
Net income (loss) | (345) | |||||||
Ending balance at Jun. 30, 2022 | (755) | $ 397 | 102,857 | (100,980) | $ (3,036) | (762) | 7 | |
Ending balance, shares at Jun. 30, 2022 | 39,688 | 802 | ||||||
Balances as of March 31, 2021 at Mar. 31, 2022 | (553) | $ 397 | 102,835 | (100,757) | $ (3,036) | (561) | 8 | |
Beginning balance, shares at Mar. 31, 2022 | 39,688 | 802 | ||||||
Net income (loss) | (223) | (223) | (223) | [1] | ||||
Accrued dividend in OmniMetrix preferred shares | (1) | (1) | ||||||
Stock option compensation | 22 | 22 | 22 | |||||
Ending balance at Jun. 30, 2022 | $ (755) | $ 397 | $ 102,857 | $ (100,980) | $ (3,036) | $ (762) | $ 7 | |
Ending balance, shares at Jun. 30, 2022 | 39,688 | 802 | ||||||
[1]Less than $1 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows (used in) provided by operating activities: | ||
Net (loss) income | $ (345,000) | $ 26,000 |
Depreciation and amortization | 48,000 | 37,000 |
Impairment of software | 51,000 | |
Non-cash lease expense | 59,000 | 59,000 |
Stock-based compensation | 53,000 | 36,000 |
Change in operating assets and liabilities: | ||
Decrease (increase) in accounts receivable | 292,000 | (98,000) |
Increase in inventory | (298,000) | (127,000) |
Increase in deferred cost of goods sold | (117,000) | (33,000) |
Increase in other current assets and other assets | (1,000) | (18,000) |
Decrease in accounts payable and accrued expenses | (125,000) | (95,000) |
Increase in deferred revenue | 242,000 | 165,000 |
Decrease in operating lease liability | (62,000) | (60,000) |
Increase in other current liabilities and non-current liabilities | 9,000 | 1,000 |
Net cash (used in) provided by operating activities | (194,000) | 83,000 |
Cash flows used in investing activities: | ||
Investments in technology | (266,000) | (42,000) |
Other capital investments | (3,000) | |
Net cash used in investing activities | (269,000) | (42,000) |
Cash flows used in financing activities: | ||
Short-term credit, net | (149,000) | |
Net cash used in financing activities | (149,000) | |
Net decrease in cash | (463,000) | (108,000) |
Cash at the beginning of the year | 1,722,000 | 2,063,000 |
Cash at the end of the period | 1,259,000 | 1,955,000 |
Cash paid during the year for: | ||
Interest | 1,000 | 4,000 |
Non-cash investing and financing activities: | ||
Accrued preferred dividends to former Acorn director and/or former OmniMetrix CEO | $ 2,000 | $ 2,000 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2022 | |
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, 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, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. All dollar amounts are rounded to the nearest thousand and, thus, are approximate. 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, 2021, filed with the Securities and Exchange Commission on March 31, 2022. |
ACCOUNTING POLICIES
ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
ACCOUNTING POLICIES | NOTE 2— ACCOUNTING POLICIES Use of Estimates in Preparation of Financial Statements The preparation of unaudited condensed consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the unaudited condensed unaudited consolidated financial statements, and the reported amounts of revenues and expenses during the reporting periods. As applicable to these unaudited condensed consolidated financial statements, the most significant estimates and assumptions relate to uncertainties with respect to income taxes, inventories, account receivable allowances, contingencies, revenue recognition, management’s projections and analyses of the possible impairments. 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 $ 1,259,000 10 Basic and Diluted Net (Loss) Income Per Share Basic net (loss) income per share is computed by dividing the net (loss) income attributable to Acorn Energy, Inc. by the weighted average number of shares outstanding during the year, excluding treasury stock. Diluted net (loss) income per share is computed by dividing the net (loss) income 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) income per share if doing so would be antidilutive. For both the six- and three-month periods ending June 30, 2022, the number of options that were excluded from the computation of diluted net loss, as they had an antidilutive effect, was 979,000 0.41 35,000 0.13 286,000 0.79 321,000 0.76 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 2022 2021 2022 2021 Six months ended June 30, Three months ended June 30, 2022 2021 2022 2021 Net (loss) income available to common stockholders $ (346 ) $ 22 $ (223 ) $ 2 Weighted average share outstanding: Basic 39,688 39,688 39,688 39,688 Add: Warrants — 27 — 27 Add: Stock options — 199 — 221 Diluted 39,688 39,914 39,688 39,936 Basic and diluted net (loss) income per share $ (0.01 ) $ 0.00 $ (0.01 ) $ 0.00 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, 2022, 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, 2022 | |
Liquidity | |
LIQUIDITY | NOTE 3— LIQUIDITY At June 30, 2022, the Company had negative working capital of $ 455,000 1,259,000 3,642,000 463,000 194,000 269,000 During the first six months of 2022, the Company’s OmniMetrix, LLC subsidiary provided $ 371,000 565,000 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 and meeting 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 continue to be positioned for stable financial performance. Business travel has now started to resume and sales are returning to projected levels. As of August 9, 2022, the Company had cash of $ 1,143,000 |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2022 | |
Leases | |
LEASES | NOTE 4— LEASES OmniMetrix leases office space and office equipment under operating lease agreements. The office lease has an expiration date of September 30, 2025 The office equipment lease was entered into in April 2019 and has a sixty-month term 62,000 60,000 32,000 30,000 4.5 390,000 4.5 Supplemental cash flow information related to leases consisted of the following (in thousands): SCHEDULE OF SUPPLEMENTAL CASH FLOW INFORMATION RELATED TO LEASES June 30, 2022 2021 Cash paid for operating lease liabilities $ 62 $ 60 Supplemental balance sheet information related to leases consisted of the following: SCHEDULE OF SUPPLEMENTAL BALANCE SHEET INFORMATION RELATED TO LEASES 2022 Weighted average remaining lease terms for operating leases 3.23 The table below reconciles the undiscounted future minimum lease payments under non-cancelable lease agreements having initial terms of more than one year to the total operating lease liabilities recognized on the unaudited condensed consolidated balance sheet as of June 30, 2022 (in thousands): SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS Twelve-month period ended June 30, 2023 $ 126 2024 129 2025 131 2026 33 Total undiscounted cash flows 419 Less: Imputed interest (29 ) Present value of operating lease liabilities (a) $ 390 (a) Includes current portion of $ 111,000 On July 6, 2021, the Company entered into an agreement with King Industrial Realty, Inc., to sublease from the Company 1,900 21,000 2,375 7,000 6,700 SCHEDULE OF SUBLEASE Twelve-month period ended June 30, 2023 $ 26 2024 26 2025 26 2026 7 Total undiscounted cash flows $ 85 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 5— 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 OmniMetrix will also 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 gas applications only. Commencing on January 1, 2021, OmniMetrix paid the partner a quarterly licensing fee of $ 12,500 4,450 17,800 4,450 In addition to the above, the Company has $ 419,000 28,000 920,000 |
EQUITY
EQUITY | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
EQUITY | NOTE 6— EQUITY (a) General At June 30, 2022 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, 2022, 1,434,850 During the three months ended June 30, 2022, 50,000 30,000 35,000 50,000 30,770 no No 126,000 114,000 SUMMARY OF BLACK-SCHOLES OPTION PRICING TO ESTIMATE FAIR VALUE Number of Options (in shares) Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Outstanding at December 31, 2021 833,020 $ 0.39 4.7 $ 291,000 Granted 145,770 0.55 Exercised — — Forfeited or expired — — Outstanding at June 30, 2022 978,790 $ 0.41 4.6 $ 126,000 Exercisable at June 30, 2022 737,579 $ 0.38 4.1 $ 114,000 The fair value of the options granted of $54,000 was estimated on the grant date using the Black-Scholes option-pricing model with the following weighted average assumptions: SCHEDULE OF STOCK OPTIONS FAIR VALUE ASSUMPTIONS ESTIMATED USING BLACK-SCHOLES PRICING MODEL Risk-free interest rate 1.8 % Expected term of options 3.9 Expected annual volatility 93.6 % 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 $ 53,000 36,000 22,000 21,000 The total compensation cost related to non-vested awards not yet recognized was $ 59,000 (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 Average Exercise Price Per Share Weighted Average Remaining Contractual Life Outstanding at December 31, 2021 35,000 $ 0.13 14.5 Granted — — Exercised — — Forfeited or expired — — Outstanding at June 30, 2022 35,000 $ 0.13 8.5 |
SEGMENT REPORTING
SEGMENT REPORTING | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | NOTE 7— SEGMENT REPORTING As of June 30, 2022, the Company operates in two ● The PG (Power Generation) (“PG”) 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 line of annunciators. ● The CP (Cathodic Protection) (“CP”) 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 six-month and three-month periods ended June 30, 2022 and 2021 (in thousands): SUMMARY OF SEGMENTED DATA PG CP Total Six months ended June 30, 2022: Revenues from external customers $ 2,825 $ 547 $ 3,372 Segment gross profit 2,164 340 2,504 Depreciation and amortization 41 8 49 Segment income (loss) before income taxes* * $ 262 $ (45 ) $ 217 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 Three months ended June 30, 2022: Revenues from external customers $ 1,380 $ 241 $ 1,621 Segment gross profit 1,091 155 1,246 Depreciation and amortization 24 5 29 Segment income (loss) before income taxes* * $ 73 $ (24 ) $ 49 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 * The software impairment of $ 51,000 is not related to a specific segment and, thus, is not included in the “Segment income (loss) before income taxes” for the six and three months ended June 30, 2022. 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 (Loss) Income to Consolidated Net (Loss) Income 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, 2022 2021 2022 2021 Total net income before income taxes for reportable segments* * $ 217 $ 493 $ 49 $ 230 Unallocated cost of corporate headquarters (510 ) (467 ) (220 ) (226 ) Consolidated net (loss) income before income taxes $ (293 ) $ 26 $ (171 ) $ 4 * The software impairment of $ 51,000 |
REVENUE
REVENUE | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | NOTE 8— REVENUE The following table disaggregates the Company’s revenue for the six-month and three-month periods ended June 30, 2022 and 2021 (in thousands): SCHEDULE OF DISAGGREGATES OF REVENUE Hardware Monitoring Total Six months ended June 30, 2022: PG Segment $ 1,002 $ 1,823 $ 2,825 CP Segment 414 133 547 Total Revenue $ 1,416 $ 1,956 $ 3,372 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 Three months ended June 30, 2022: PG Segment $ 479 $ 901 $ 1,380 CP Segment 176 65 241 Total Revenue $ 655 $ 966 $ 1,621 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 Deferred revenue activity for the six months ended June 30, 2022 can be seen in the table below (in thousands): SCHEDULE OF DEFERRED REVENUE ACTIVITY Hardware Monitoring Total Balance at December 31, 2021 $ 3,268 $ 2,125 $ 5,393 Additions during the period 1,282 1,943 3,225 Recognized as revenue (1,027 ) (1,956 ) (2,983 ) Balance at June 30, 2022 $ 3,523 $ 2,112 $ 5,635 Amounts to be recognized as revenue in the twelve-month-period ending: June 30, 2023 $ 1,839 $ 1,803 $ 3,642 June 30, 2024 1,270 304 1,574 June 30, 2025 and thereafter 414 5 419 Total $ 3,523 $ 2,112 $ 5,635 Other revenue of $ 389,000 Deferred charges relate only to the sale of equipment. Deferred charges activity for the six months ended June 30, 2022 can be seen in the table below (in thousands): SCHEDULE OF DEFERRED CHARGES ACTIVITY Balance at December 31, 2021 $ 1,513 Additions, net of adjustments, during the period 601 Recognized as cost of sales (484 ) Balance at June 30, 2022 $ 1,630 Amounts to be recognized as cost of sales in the twelve-month-period ending: June 30, 2023 $ 858 June 30, 2024 581 * June 30, 2025 and thereafter 191 * $ 1,630 Other cost of goods sold (COGS) recognized of $ 227,000 157,000 The following table provides a reconciliation of the Company’s sales commissions contract assets for the six-month period ended June 30, 2022 (in thousands): SCHEDULE OF SALES COMMISSIONS CONTRACT ASSETS Hardware Monitoring Total Balance at December 31, 2021 $ 242 $ 53 $ 295 Additions during the period 94 20 114 Amortization of sales commissions (71 ) (13 ) (84 ) Balance at June 30, 2022 $ 265 $ 60 $ 325 The capitalized sales commissions are included in other current assets ($ 159,000 166,000 138,000 157,000 |
RELATED PARTY BALANCES AND TRAN
RELATED PARTY BALANCES AND TRANSACTIONS | 6 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY BALANCES AND TRANSACTIONS | NOTE 9— RELATED PARTY BALANCES AND TRANSACTIONS Officer and Director Fees The Company recorded fees to officers of $ 261,000 256,000 131,000 129,000 The Company recorded fees to directors of $ 30,000 15,000 Intercompany The related party balance due to Acorn from OmniMetrix for amounts loaned, accrued interest and expenses paid by Acorn on OmniMetrix’s behalf was $ 3,661,000 4,217,000 556,000 780,000 89,000 38,000 97,000 157,000 345,000 104,000 38,000 46,000 |
ACCOUNTING POLICIES (Policies)
ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Use of Estimates in Preparation of Financial Statements | Use of Estimates in Preparation of Financial Statements The preparation of unaudited condensed consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the unaudited condensed unaudited consolidated financial statements, and the reported amounts of revenues and expenses during the reporting periods. As applicable to these unaudited condensed consolidated financial statements, the most significant estimates and assumptions relate to uncertainties with respect to income taxes, inventories, account receivable allowances, contingencies, revenue recognition, management’s projections and analyses of the possible impairments. |
Concentrations of Credit Risk | 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 $ 1,259,000 10 |
Basic and Diluted Net (Loss) Income Per Share | Basic and Diluted Net (Loss) Income Per Share Basic net (loss) income per share is computed by dividing the net (loss) income attributable to Acorn Energy, Inc. by the weighted average number of shares outstanding during the year, excluding treasury stock. Diluted net (loss) income per share is computed by dividing the net (loss) income 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) income per share if doing so would be antidilutive. For both the six- and three-month periods ending June 30, 2022, the number of options that were excluded from the computation of diluted net loss, as they had an antidilutive effect, was 979,000 0.41 35,000 0.13 286,000 0.79 321,000 0.76 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 2022 2021 2022 2021 Six months ended June 30, Three months ended June 30, 2022 2021 2022 2021 Net (loss) income available to common stockholders $ (346 ) $ 22 $ (223 ) $ 2 Weighted average share outstanding: Basic 39,688 39,688 39,688 39,688 Add: Warrants — 27 — 27 Add: Stock options — 199 — 221 Diluted 39,688 39,914 39,688 39,936 Basic and diluted net (loss) income per share $ (0.01 ) $ 0.00 $ (0.01 ) $ 0.00 |
Recently Issued Accounting Principles | 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, 2022, 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. |
ACCOUNTING POLICIES (Tables)
ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 2022 2021 2022 2021 Six months ended June 30, Three months ended June 30, 2022 2021 2022 2021 Net (loss) income available to common stockholders $ (346 ) $ 22 $ (223 ) $ 2 Weighted average share outstanding: Basic 39,688 39,688 39,688 39,688 Add: Warrants — 27 — 27 Add: Stock options — 199 — 221 Diluted 39,688 39,914 39,688 39,936 Basic and diluted net (loss) income per share $ (0.01 ) $ 0.00 $ (0.01 ) $ 0.00 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 June 30, 2022 2021 Cash paid for operating lease liabilities $ 62 $ 60 |
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 2022 Weighted average remaining lease terms for operating leases 3.23 |
SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS | The table below reconciles the undiscounted future minimum lease payments under non-cancelable lease agreements having initial terms of more than one year to the total operating lease liabilities recognized on the unaudited condensed consolidated balance sheet as of June 30, 2022 (in thousands): SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS Twelve-month period ended June 30, 2023 $ 126 2024 129 2025 131 2026 33 Total undiscounted cash flows 419 Less: Imputed interest (29 ) Present value of operating lease liabilities (a) $ 390 (a) Includes current portion of $ 111,000 |
SCHEDULE OF SUBLEASE | SCHEDULE OF SUBLEASE Twelve-month period ended June 30, 2023 $ 26 2024 26 2025 26 2026 7 Total undiscounted cash flows $ 85 |
EQUITY (Tables)
EQUITY (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
SUMMARY OF BLACK-SCHOLES OPTION PRICING TO ESTIMATE FAIR VALUE | SUMMARY OF BLACK-SCHOLES OPTION PRICING TO ESTIMATE FAIR VALUE Number of Options (in shares) Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Outstanding at December 31, 2021 833,020 $ 0.39 4.7 $ 291,000 Granted 145,770 0.55 Exercised — — Forfeited or expired — — Outstanding at June 30, 2022 978,790 $ 0.41 4.6 $ 126,000 Exercisable at June 30, 2022 737,579 $ 0.38 4.1 $ 114,000 |
SCHEDULE OF STOCK OPTIONS FAIR VALUE ASSUMPTIONS ESTIMATED USING BLACK-SCHOLES PRICING MODEL | The fair value of the options granted of $54,000 was estimated on the grant date using the Black-Scholes option-pricing model with the following weighted average assumptions: SCHEDULE OF STOCK OPTIONS FAIR VALUE ASSUMPTIONS ESTIMATED USING BLACK-SCHOLES PRICING MODEL Risk-free interest rate 1.8 % Expected term of options 3.9 Expected annual volatility 93.6 % 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 Average Exercise Price Per Share Weighted Average Remaining Contractual Life Outstanding at December 31, 2021 35,000 $ 0.13 14.5 Granted — — Exercised — — Forfeited or expired — — Outstanding at June 30, 2022 35,000 $ 0.13 8.5 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
SUMMARY OF SEGMENTED DATA | The following tables represent segmented data for the six-month and three-month periods ended June 30, 2022 and 2021 (in thousands): SUMMARY OF SEGMENTED DATA PG CP Total Six months ended June 30, 2022: Revenues from external customers $ 2,825 $ 547 $ 3,372 Segment gross profit 2,164 340 2,504 Depreciation and amortization 41 8 49 Segment income (loss) before income taxes* * $ 262 $ (45 ) $ 217 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 Three months ended June 30, 2022: Revenues from external customers $ 1,380 $ 241 $ 1,621 Segment gross profit 1,091 155 1,246 Depreciation and amortization 24 5 29 Segment income (loss) before income taxes* * $ 73 $ (24 ) $ 49 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 * The software impairment of $ 51,000 is not related to a specific segment and, thus, is not included in the “Segment income (loss) before income taxes” for the six and three months ended June 30, 2022. |
SCHEDULE OF RECONCILIATION OF SEGMENT DATA TO CONSOLIDATED NET INCOME LOSS BEFORE INCOME TAXES | Reconciliation of Segment (Loss) Income to Consolidated Net (Loss) Income 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, 2022 2021 2022 2021 Total net income before income taxes for reportable segments* * $ 217 $ 493 $ 49 $ 230 Unallocated cost of corporate headquarters (510 ) (467 ) (220 ) (226 ) Consolidated net (loss) income before income taxes $ (293 ) $ 26 $ (171 ) $ 4 * The software impairment of $ 51,000 |
REVENUE (Tables)
REVENUE (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
SCHEDULE OF DISAGGREGATES OF REVENUE | The following table disaggregates the Company’s revenue for the six-month and three-month periods ended June 30, 2022 and 2021 (in thousands): SCHEDULE OF DISAGGREGATES OF REVENUE Hardware Monitoring Total Six months ended June 30, 2022: PG Segment $ 1,002 $ 1,823 $ 2,825 CP Segment 414 133 547 Total Revenue $ 1,416 $ 1,956 $ 3,372 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 Three months ended June 30, 2022: PG Segment $ 479 $ 901 $ 1,380 CP Segment 176 65 241 Total Revenue $ 655 $ 966 $ 1,621 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 |
SCHEDULE OF DEFERRED REVENUE ACTIVITY | Deferred revenue activity for the six months ended June 30, 2022 can be seen in the table below (in thousands): SCHEDULE OF DEFERRED REVENUE ACTIVITY Hardware Monitoring Total Balance at December 31, 2021 $ 3,268 $ 2,125 $ 5,393 Additions during the period 1,282 1,943 3,225 Recognized as revenue (1,027 ) (1,956 ) (2,983 ) Balance at June 30, 2022 $ 3,523 $ 2,112 $ 5,635 Amounts to be recognized as revenue in the twelve-month-period ending: June 30, 2023 $ 1,839 $ 1,803 $ 3,642 June 30, 2024 1,270 304 1,574 June 30, 2025 and thereafter 414 5 419 Total $ 3,523 $ 2,112 $ 5,635 |
SCHEDULE OF DEFERRED CHARGES ACTIVITY | Deferred charges relate only to the sale of equipment. Deferred charges activity for the six months ended June 30, 2022 can be seen in the table below (in thousands): SCHEDULE OF DEFERRED CHARGES ACTIVITY Balance at December 31, 2021 $ 1,513 Additions, net of adjustments, during the period 601 Recognized as cost of sales (484 ) Balance at June 30, 2022 $ 1,630 Amounts to be recognized as cost of sales in the twelve-month-period ending: June 30, 2023 $ 858 June 30, 2024 581 * June 30, 2025 and thereafter 191 * $ 1,630 |
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, 2022 (in thousands): SCHEDULE OF SALES COMMISSIONS CONTRACT ASSETS Hardware Monitoring Total Balance at December 31, 2021 $ 242 $ 53 $ 295 Additions during the period 94 20 114 Amortization of sales commissions (71 ) (13 ) (84 ) Balance at June 30, 2022 $ 265 $ 60 $ 325 |
SCHEDULE OF EFFECT ON NET INCOM
SCHEDULE OF EFFECT ON NET INCOME LOSS AND WEIGHTED AVERAGE NUMBER OF SHARES (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Accounting Policies [Abstract] | ||||
Net (loss) income available to common stockholders | $ (223) | $ 2 | $ (346) | $ 22 |
Weighted average share outstanding: | ||||
Basic | 39,688 | 39,688 | 39,688 | 39,688 |
Add: Warrants | 27 | 27 | ||
Add: Stock options | 221 | 199 | ||
Diluted | 39,688 | 39,936 | 39,688 | 39,914 |
Basic and diluted net (loss) income per share | $ (0.01) | $ 0 | $ (0.01) | $ 0 |
ACCOUNTING POLICIES (Details Na
ACCOUNTING POLICIES (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Product Information [Line Items] | |||||
Cash and cash equivalents | $ 1,259,000 | $ 1,259,000 | $ 1,722,000 | ||
Stock Options [Member] | |||||
Product Information [Line Items] | |||||
Antidilutive securities excluded from computation of earnings per share, amount | 979,000 | 321,000 | 979,000 | 286,000 | |
Weighted average exercise price of options and warrants | $ 0.41 | $ 0.41 | |||
Warrant [Member] | |||||
Product Information [Line Items] | |||||
Antidilutive securities excluded from computation of earnings per share, amount | 35,000 | 35,000 | |||
Weighted average exercise price of options and warrants | $ 0.13 | $ 0.76 | $ 0.13 | $ 0.79 | |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Minimum [Member] | |||||
Product Information [Line Items] | |||||
Concentration risk, percentage | 10% |
LIQUIDITY (Details Narrative)
LIQUIDITY (Details Narrative) - USD ($) | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Working capital | $ 455,000 | ||
Cash and cash equivalents, at carrying value | 1,259,000 | $ 1,722,000 | |
Deferred revenue, current | 3,642,000 | $ 3,541,000 | |
Cash, cash equivalents, restricted cash, and restricted cash equivalents, period increase (decrease), including exchange rate effect | 463,000 | $ 108,000 | |
Net cash provided by (used in) investing activities | 269,000 | $ 42,000 | |
Income loss from subsidiary operations | 565,000 | ||
Cash | 1,143,000 | ||
Subsidiaries [Member] | |||
Subsidiary Operations | 371,000 | ||
OmniMetrix, LLC [Member] | |||
Income (loss) from continuing operations, net of tax, attributable to parent | $ 194,000 |
SCHEDULE OF SUPPLEMENTAL CASH F
SCHEDULE OF SUPPLEMENTAL CASH FLOW INFORMATION RELATED TO LEASES (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Leases | ||
Cash paid for operating lease liabilities | $ 62 | $ 60 |
SCHEDULE OF SUPPLEMENTAL BALANC
SCHEDULE OF SUPPLEMENTAL BALANCE SHEET INFORMATION RELATED TO LEASES (Details) | Jun. 30, 2022 |
Leases | |
Weighted average remaining lease terms for operating leases | 3 years 2 months 23 days |
SCHEDULE OF FUTURE MINIMUM LEAS
SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS (Details) | Jun. 30, 2022 USD ($) |
Leases | |
2023 | $ 126,000 |
2024 | 129,000 |
2025 | 131,000 |
2026 | 33,000 |
Total undiscounted cash flows | 419,000 |
Less: Imputed interest | (29,000) |
Present value of operating lease liabilities (a) | $ 390,000 |
SCHEDULE OF FUTURE MINIMUM LE_2
SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS (Details) (Parenthetical) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Leases | ||
Current operating lease | $ 111,000 | $ 107,000 |
SCHEDULE OF SUBLEASE (Details)
SCHEDULE OF SUBLEASE (Details) $ in Thousands | Jun. 30, 2022 USD ($) |
Leases | |
2023 | $ 26 |
2024 | 26 |
2025 | 26 |
2026 | 7 |
Total undiscounted cash flows | $ 85 |
LEASES (Details Narrative)
LEASES (Details Narrative) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Jul. 06, 2021 USD ($) ft² | Apr. 30, 2019 | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||
Lessee, operating lease, discount rate | 4.50% | 4.50% | ||||
Operating lease, liability | $ 390,000 | $ 390,000 | ||||
Sublease payments | $ 2,375 | |||||
Leasehold Improvements, Gross | 7,000 | |||||
Estimated Sublease Payments | $ 6,700 | |||||
King Industrial Reality Inc [Member] | ||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||
Area of Land | ft² | 1,900 | |||||
King Industrial Realty Inc [Member] | ||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||
Area of Land | ft² | 21,000 | |||||
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 was entered into in April 2019 and has a sixty-month term | |||||
Operating lease, payments | $ 32,000 | $ 30,000 | $ 62,000 | $ 60,000 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) | 6 Months Ended | |
Aug. 19, 2019 | Jun. 30, 2022 | |
Master Services Agreement [Member] | ||
Operating lease obligations payable | $ 419,000 | |
Operating leases and contractual services | 28,000 | |
Commitment payable | $ 920,000 | |
OmniMetrix, LLC [Member] | ||
Monthly payments | $ 200,000 | |
Quarterly licensing fee | 12,500 | |
Quarterly increments | 4,450 | |
Annual licensing fee | $ 17,800 | |
Omnimetrix [Member] | ||
Partner sensor transaction description | OmniMetrix will also 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 gas applications only. Commencing on January 1, 2021, OmniMetrix paid the partner a quarterly licensing fee of $12,500 which was renegotiated to $4,450 effective October 1, 2021. The annual licensing fee moving forward will be $17,800, which will be paid in quarterly increments of $4,450. The per-sensor monitoring fees have not yet commenced |
SUMMARY OF BLACK-SCHOLES OPTION
SUMMARY OF BLACK-SCHOLES OPTION PRICING TO ESTIMATE FAIR VALUE (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Equity [Abstract] | ||
Number of Options (in shares), Outstanding at beginning of year | 833,020 | |
Weighted Average Exercise Price Per Share, Outstanding at beginning of year | $ 0.39 | |
Weighted average remaining contractual life at end | 4 years 7 months 6 days | 4 years 8 months 12 days |
Aggregate intrinsic value at beginning of year | $ 291,000 | |
Number of Options (in shares), Granted at market price | 145,770 | |
Weighted Average Exercise Price Per Share, Granted | $ 0.55 | |
Number of Options (in shares), Exercised | ||
Weighted Average Exercise Price Per Share, Exercised | ||
Number of Options (in shares), Forfeited or expired | ||
Weighted Average Exercise Price Per Share, Forfeited or expired | ||
Number of Options (in shares), Outstanding at end of year | 978,790 | 833,020 |
Weighted Average Exercise Price Per Share, Outstanding at end of year | $ 0.41 | $ 0.39 |
Aggregate intrinsic value at end of year | $ 126,000 | $ 291,000 |
Number of Options (in shares), Exercisable at end of year | 737,579 | |
Weighted Average Exercise Price Per Share, Exercisable at end of year | $ 0.38 | |
Weighted average remaining contractual life at exercisable at end of year | 4 years 1 month 6 days | |
Aggregate intrinsic value at exercisable | $ 114,000 |
SCHEDULE OF STOCK OPTIONS FAIR
SCHEDULE OF STOCK OPTIONS FAIR VALUE ASSUMPTIONS ESTIMATED USING BLACK-SCHOLES PRICING MODEL (Details) | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Risk-free interest rate | 1.80% |
Expected term of options, in years | 3 years 10 months 24 days |
Expected annual volatility | 93.60% |
Expected dividend yield |
SUMMARY OF WARRANT ACTIVITY (De
SUMMARY OF WARRANT ACTIVITY (Details) - Warrant [Member] - $ / shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Number of Warrants (in Shares), Outstanding at beginning balance | 35,000 | |
Weighted Average Exercise Price Per Share, Outstanding at beginning balance | $ 0.13 | |
Weighted average remaining contractual life at end | 8 months 15 days | 14 months 15 days |
Number of Warrants (in Shares), Granted | ||
Weighted Average Exercise Price Per Share, Granted | ||
Number of Warrants (in Shares), Exercised | ||
Weighted Average Exercise Price Per Share, Exercised | ||
Number of Warrants (in Shares), Forfeited or expired | ||
Weighted Average Exercise Price Per Share, Forfeited or expired | ||
Number of Warrants (in Shares), Outstanding at end balance | 35,000 | 35,000 |
Weighted Average Exercise Price Per Share, Outstanding at end balance | $ 0.13 | $ 0.13 |
EQUITY (Details Narrative)
EQUITY (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Subsidiary, Sale of Stock [Line Items] | |||||
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 | 145,770 | ||||
Number of options exercised | |||||
Intrinsic value of options outstanding | $ 126,000 | $ 126,000 | $ 291,000 | ||
Intrinsic value of options exercisable | 114,000 | 114,000 | |||
Compensation cost, non-vested awards not yet recognized | 59,000 | 59,000 | |||
Selling, General and Administrative Expenses [Member] | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Stock based compensation expense | $ 22,000 | $ 21,000 | $ 53,000 | $ 36,000 | |
Non Employee Stock Option [Member] | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Number of options exercised | 0 | 0 | |||
Chief Financial Officer [Member] | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Number of options granted during period | 50,000 | 50,000 | |||
Director [Member] | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Number of options granted during period | 30,000 | ||||
Chief Executive Officer [Member] | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Number of options granted during period | 35,000 | ||||
Other Employees [Member] | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Number of options granted during period | 30,770 | ||||
Non-employee [Member] | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Number of options granted during period | 0 | 0 | |||
Amended and Restated 2006 Stock Incentive Plan [Member] | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Number of options available for grant | 1,434,850 | 1,434,850 |
SUMMARY OF SEGMENTED DATA (Deta
SUMMARY OF SEGMENTED DATA (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |||
Segment Reporting Information [Line Items] | ||||||
Revenues from external customers | $ 1,621 | $ 1,611 | $ 3,372 | $ 3,316 | ||
Segment gross profit | 1,246 | 1,222 | 2,504 | 2,432 | ||
Depreciation and amortization | 29 | 22 | 49 | 37 | ||
Segment income (loss) before income taxes | 49 | [1] | 230 | 217 | [1] | 493 |
PG [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues from external customers | 1,380 | 1,379 | 2,825 | 2,837 | ||
Segment gross profit | 1,091 | 1,082 | 2,164 | 2,150 | ||
Depreciation and amortization | 24 | 19 | 41 | 32 | ||
Segment income (loss) before income taxes | 73 | [1] | 234 | 262 | [1] | 510 |
CP [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues from external customers | 241 | 232 | 547 | 479 | ||
Segment gross profit | 155 | 140 | 340 | 282 | ||
Depreciation and amortization | 5 | 3 | 8 | 5 | ||
Segment income (loss) before income taxes | $ (24) | [1] | $ (4) | $ (45) | [1] | $ (17) |
[1]The software impairment of $ 51,000 is not related to a specific segment and, thus, is not included in the “Segment income (loss) before income taxes” for the six and three months ended June 30, 2022. |
SUMMARY OF SEGMENTED DATA (De_2
SUMMARY OF SEGMENTED DATA (Details) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2022 | Jun. 30, 2022 | |
Segment Reporting [Abstract] | ||
Segment income before income taxes | $ 51,000 | $ 51,000 |
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, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Segment Reporting [Abstract] | |||||
Total net income before income taxes for reportable segments* | [1] | $ 49 | $ 230 | $ 217 | $ 493 |
Unallocated cost of corporate headquarters | (220) | (226) | (510) | (467) | |
Consolidated net (loss) income before income taxes | $ (171) | $ 4 | $ (293) | $ 26 | |
[1]The software impairment of $ 51,000 |
SCHEDULE OF RECONCILIATION OF_2
SCHEDULE OF RECONCILIATION OF SEGMENT DATA TO CONSOLIDATED NET INCOME LOSS BEFORE INCOME TAXES (Details) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2022 | Jun. 30, 2022 | |
Segment Reporting [Abstract] | ||
Segment income before income taxes | $ 51,000 | $ 51,000 |
SEGMENT REPORTING (Details Narr
SEGMENT REPORTING (Details Narrative) | 6 Months Ended |
Jun. 30, 2022 Segments | |
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, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | $ 1,621 | $ 1,611 | $ 3,372 | $ 3,316 |
Hardware [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 655 | 594 | 1,416 | 1,291 |
Monitoring [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 966 | 1,017 | 1,956 | 2,025 |
PG [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 1,380 | 1,379 | 2,825 | 2,837 |
PG [Member] | Hardware [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 479 | 425 | 1,002 | 942 |
PG [Member] | Monitoring [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 901 | 954 | 1,823 | 1,895 |
CP [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 241 | 232 | 547 | 479 |
CP [Member] | Hardware [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 176 | 169 | 414 | 349 |
CP [Member] | Monitoring [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | $ 65 | $ 63 | $ 133 | $ 130 |
SCHEDULE OF DEFERRED REVENUE AC
SCHEDULE OF DEFERRED REVENUE ACTIVITY (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Disaggregation of Revenue [Line Items] | |
Balance at December 31, 2021 | $ 5,393 |
Additions during the period | 3,225 |
Recognized as revenue | (2,983) |
Balance at June 30, 2022 | 5,635 |
June 30, 2023 | 3,642 |
June 30, 2024 | 1,574 |
June 30, 2025 and thereafter | 419 |
Total | 5,635 |
Hardware [Member] | |
Disaggregation of Revenue [Line Items] | |
Balance at December 31, 2021 | 3,268 |
Additions during the period | 1,282 |
Recognized as revenue | (1,027) |
Balance at June 30, 2022 | 3,523 |
June 30, 2023 | 1,839 |
June 30, 2024 | 1,270 |
June 30, 2025 and thereafter | 414 |
Total | 3,523 |
Monitoring [Member] | |
Disaggregation of Revenue [Line Items] | |
Balance at December 31, 2021 | 2,125 |
Additions during the period | 1,943 |
Recognized as revenue | (1,956) |
Balance at June 30, 2022 | 2,112 |
June 30, 2023 | 1,803 |
June 30, 2024 | 304 |
June 30, 2025 and thereafter | 5 |
Total | $ 2,112 |
SCHEDULE OF DEFERRED CHARGES AC
SCHEDULE OF DEFERRED CHARGES ACTIVITY (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Balance at December 31, 2021 | $ 1,513 |
Additions, net of adjustments, during the period | 601 |
Recognized as cost of sales | (484) |
Balance at June 30, 2022 | 1,630 |
June 30, 2023 | 858 |
June 30, 2024 | 581 |
June 30, 2025 and thereafter | 191 |
Total | $ 1,630 |
SCHEDULE OF SALES COMMISSIONS C
SCHEDULE OF SALES COMMISSIONS CONTRACT ASSETS (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Disaggregation of Revenue [Line Items] | |
Balance at December 31, 2021 | $ 295 |
Additions during the period | 114 |
Amortization of sales commissions | (84) |
Balance at June 30, 2022 | 325 |
Hardware [Member] | |
Disaggregation of Revenue [Line Items] | |
Balance at December 31, 2021 | 242 |
Additions during the period | 94 |
Amortization of sales commissions | (71) |
Balance at June 30, 2022 | 265 |
Monitoring [Member] | |
Disaggregation of Revenue [Line Items] | |
Balance at December 31, 2021 | 53 |
Additions during the period | 20 |
Amortization of sales commissions | (13) |
Balance at June 30, 2022 | $ 60 |
REVENUE (Details Narrative)
REVENUE (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||||
Revenue | $ 1,621,000 | $ 1,611,000 | $ 3,372,000 | $ 3,316,000 | |
Cost of Goods and Services Sold | 375,000 | $ 389,000 | 868,000 | $ 884,000 | |
Other assets, current | 221,000 | 221,000 | $ 229,000 | ||
Capitalized Sales Commissions [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Other assets, current | 159,000 | 159,000 | 138,000 | ||
Other Assets | $ 166,000 | 166,000 | $ 157,000 | ||
Other Revenue Related to Accessories, Repairs and Other Miscellaneous Charges [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 389,000 | ||||
Other COGS and Miscellaneous Charges [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Cost of Goods and Services Sold | 227,000 | ||||
Monitoring Services [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Cost of Goods and Services Sold | $ 157,000 |
RELATED PARTY BALANCES AND TR_2
RELATED PARTY BALANCES AND TRANSACTIONS (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
OmniMetrix, LLC [Member] | |||||
Related Party Transaction [Line Items] | |||||
Due from related party | $ 3,661,000 | $ 3,661,000 | $ 4,217,000 | ||
Increase decrease in related parties | 556,000 | $ 157,000 | |||
Repayment of related party debt | 780,000 | 345,000 | |||
Interest | 89,000 | 104,000 | |||
Dividends | 38,000 | 38,000 | |||
Related party expenses paid | 97,000 | 46,000 | |||
Officer [Member] | |||||
Related Party Transaction [Line Items] | |||||
Consulting and other fees to officer | 131,000 | $ 129,000 | 261,000 | 256,000 | |
Director [Member] | |||||
Related Party Transaction [Line Items] | |||||
Consulting and other fees to directors | $ 15,000 | $ 15,000 | $ 30,000 | $ 30,000 |