Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2023 | May 09, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2023 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2023 | |
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 | |
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 | 39,757,589 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash | $ 1,346,000 | $ 1,450,000 |
Accounts receivable, net | 771,000 | 597,000 |
Inventory, net | 804,000 | 789,000 |
Deferred cost of goods sold (COGS) | 898,000 | 887,000 |
Other current assets | 312,000 | 288,000 |
Total current assets | 4,131,000 | 4,011,000 |
Property and equipment, net | 641,000 | 653,000 |
Operating right-of-use assets, net | 272,000 | 298,000 |
Deferred COGS | 759,000 | 807,000 |
Other assets | 211,000 | 215,000 |
Total assets | 6,014,000 | 5,984,000 |
Current liabilities: | ||
Accounts payable | 361,000 | 243,000 |
Accrued expenses | 137,000 | 171,000 |
Deferred revenue | 4,047,000 | 3,984,000 |
Current operating lease liabilities | 118,000 | 116,000 |
Other current liabilities | 48,000 | 58,000 |
Total current liabilities | 4,711,000 | 4,572,000 |
Long-term liabilities: | ||
Deferred revenue | 2,169,000 | 2,187,000 |
Noncurrent operating lease liabilities | 190,000 | 220,000 |
Other long-term liabilities | 18,000 | 16,000 |
Total long-term liabilities | 2,377,000 | 2,423,000 |
Commitments and contingencies (Note 7) | ||
Acorn Energy, Inc. stockholders | ||
Common stock - $0.01 par value per share: Authorized – 42,000,000 shares; issued and outstanding – 39,757,589 and 39,722,589 shares at March 31, 2023 and December 31, 2022, respectively | 397,000 | 397,000 |
Additional paid-in capital | 102,911,000 | 102,889,000 |
Accumulated stockholders’ deficit | (101,352,000) | (101,267,000) |
Treasury stock, at cost – 801,920 shares at March 31, 2023 and December 31, 2022 | (3,036,000) | (3,036,000) |
Total Acorn Energy, Inc. stockholders’ deficit | (1,080,000) | (1,017,000) |
Non-controlling interests | 6,000 | 6,000 |
Total stockholders’ deficit | (1,074,000) | (1,011,000) |
Total liabilities and stockholders’ deficit | $ 6,014,000 | $ 5,984,000 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2023 | Dec. 31, 2022 |
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 | 39,757,589 | 39,722,589 |
Common stock, shares outstanding | 39,757,589 | 39,722,589 |
Treasury stock, shares | 801,920 | 801,920 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | ||
Revenue | $ 1,749 | $ 1,751 |
COGS | 433 | 493 |
Gross profit | 1,316 | 1,258 |
Operating expenses: | ||
Research and development expense | 214 | 198 |
Selling, general and administrative expense | 1,197 | 1,182 |
Total operating expenses | 1,411 | 1,380 |
Operating loss | (95) | (122) |
Interest income, net | 11 | |
Loss before income taxes | (84) | (122) |
Income tax expense | ||
Net loss | (84) | (122) |
Non-controlling interest share of net income | (1) | (1) |
Net loss attributable to Acorn Energy, Inc. stockholders | $ (85) | $ (123) |
Basic and diluted net loss per share attributable to Acorn Energy, Inc. stockholders: | ||
Total attributable to Acorn Energy, Inc. stockholders | $ 0 | $ 0 |
Weighted average number of shares outstanding attributable to Acorn Energy, Inc. stockholders – basic and diluted: | ||
Basic and diluted | 39,734 | 39,688 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Stockholders' Deficit (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock, Common [Member] | Parent [Member] | Noncontrolling Interest [Member] | Total | |
Beginning balance, value at Dec. 31, 2021 | $ 397 | $ 102,804 | $ (100,634) | $ (3,036) | $ (469) | $ 8 | $ (461) | |
Balance, shares at Dec. 31, 2021 | 39,688 | 802 | ||||||
Net loss | (123) | (123) | 1 | (122) | ||||
Accrued dividend in OmniMetrix preferred shares | (1) | (1) | ||||||
Stock-based compensation | 31 | 31 | 31 | |||||
Balances value at Mar. 31, 2022 | $ 397 | 102,835 | (100,757) | $ (3,036) | (561) | 8 | (553) | |
Balance, shares at Mar. 31, 2022 | 39,688 | 802 | ||||||
Beginning balance, value at Dec. 31, 2022 | $ 397 | 102,889 | (101,267) | $ (3,036) | (1,017) | 6 | (1,011) | |
Balance, shares at Dec. 31, 2022 | 39,723 | 802 | ||||||
Net loss | (85) | (85) | 1 | (84) | ||||
Proceeds from warrant exercise | [1] | 5 | 5 | 5 | ||||
Proceeds from warrant exercise, shares | 35 | |||||||
Accrued dividend in OmniMetrix preferred shares | (1) | (1) | ||||||
Stock-based compensation | 17 | 17 | 17 | |||||
Balances value at Mar. 31, 2023 | $ 397 | $ 102,911 | $ (101,352) | $ (3,036) | $ (1,080) | $ 6 | $ (1,074) | |
Balance, shares at Mar. 31, 2023 | 39,758 | 802 | ||||||
[1]less than $1 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows provided by operating activities: | ||
Net loss | $ (84) | $ (122) |
Depreciation and amortization | 38 | 20 |
Impairment of inventory | 3 | |
Non-cash lease expense | 31 | 29 |
Stock-based compensation | 17 | 31 |
Change in operating assets and liabilities: | ||
(Increase) decrease in accounts receivable | (174) | 56 |
Increase in inventory | (18) | (57) |
Decrease (increase) in deferred COGS | 37 | (135) |
(Increase) decrease in other current assets and other assets | (20) | 7 |
Increase in deferred revenue | 45 | 299 |
Decrease in operating lease liability | (33) | (30) |
Increase in accounts payable, accrued expenses, other current liabilities and non-current liabilities | 75 | 123 |
Net cash (used in) provided by operating activities | (83) | 221 |
Cash flows used in investing activities: | ||
Investments in technology | (26) | (157) |
Other capital investments | (2) | |
Net cash used in investing activities | (26) | (159) |
Cash flows provided by financing activities: | ||
Warrant exercise proceeds | 5 | |
Net cash provided by financing activities | 5 | |
Net (decrease) increase in cash | (104) | 62 |
Cash at the beginning of the period | 1,450 | 1,722 |
Cash at the end of the period | 1,346 | 1,784 |
Non-cash investing and financing activities: | ||
Accrued preferred dividends to former CEO of OmniMetrix | $ 1 | $ 1 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2023 | |
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 three-month periods ended March 31, 2023 and 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. 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, 2022, filed with the Securities and Exchange Commission on March 16, 2023. |
ACCOUNTING POLICIES
ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2023 | |
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 $ 1,346,000 at March 31, 2023. The Company does not believe there is a significant risk of non-performance by these counterparties. For the three-month periods ended March 31, 2023 and 2022, there were no customers that represented greater than 10 % of the Company’s total invoiced sales. Approximately 21 % of the accounts receivable at March 31, 2023 was due from one customer who pays its receivables over usual credit periods. Approximately 12% 160,000 , in the aggregate, due from the one customer as of March 31, 2023. Credit risk with respect to the balance of trade receivables is generally diversified due to the number of entities comprising the Company’s customer base. Inventory Inventories are comprised of components (raw materials), work-in-process and finished goods, which are measured at net realizable value. Raw materials inventory is generally comprised of radios, cables, antennas, and electrical components. Finished goods inventory consists of fully assembled systems ready for final shipment to the customer. Costs are determined at cost of acquisition on a weighted average basis and include all outside production and applicable shipping costs. All inventories are periodically reviewed to identify slow-moving and obsolete inventory. Management conducted an assessment and wrote-off inventory carried at $ 3,000 no Basic and Diluted Net Loss Per Share Basic net loss per share is computed by dividing the net loss attributable to Acorn Energy, Inc. by the weighted average number of shares outstanding during the year, excluding treasury stock. Diluted net loss per share is computed by dividing the net 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 combined number of options and warrants that were excluded from the computation of diluted net loss per share, as they had an antidilutive effect, was 1,035,000 0.41 964,000 0.40 The following data represents the amounts used in computing EPS and the effect on net 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 2023 2022 Three months ended 2023 2022 Net loss attributable to common stockholders $ (85 ) $ (123 ) Weighted average shares outstanding: -Basic 39,734 39,688 Add: Warrants — — Add: Stock options — — -Diluted 39,734 39,688 Basic and diluted net loss per share $ 0.00 $ 0.00 Recently Adopted Accounting Standards Other than the pronouncement noted below, there have been no recent accounting pronouncements or changes in accounting standards during the three-month period ended March 31, 2023. On January 1, 2023, the Company adopted ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This guidance was issued to provide financial statement users with more useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. Specifically, this guidance requires entities to utilize a new “expected loss” model as it relates to trade and other receivables. The adoption of the standard impacts the way the Company estimates the allowance for doubtful accounts on its trade and other receivables. Refer to Note 4, “Allowance for Credit Losses,” for further information regarding the Company’s allowance for expected credit losses. Recently Issued Accounting Standards In March 2023, the FASB issued Accounting standards update No. 2016-13 (“ASU 2016-13”), which amends the application of ASU 2016-02, Leases (Topic 842), |
LIQUIDITY
LIQUIDITY | 3 Months Ended |
Mar. 31, 2023 | |
Liquidity | |
LIQUIDITY | NOTE 3— LIQUIDITY As of March 31, 2023, the Company had $ 1,346,000 At March 31, 2023, the Company had a negative working capital of $ 580,000 1,346,000 4,047,000 104,000 83,000 26,000 5,000 As of May 9, 2023, the Company had cash of $ 1,543,000 |
ALLOWANCE FOR CREDIT LOSSES
ALLOWANCE FOR CREDIT LOSSES | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
ALLOWANCE FOR CREDIT LOSSES | NOTE 4— ALLOWANCE FOR CREDIT LOSSES For the Company, ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments; applies to its contract assets (deferred COGS and deferred sales commissions), lease receivables (sublease, see Note 6) and trade receivables. There are no expected or estimated credit losses on the Company’s contract assets or its lease receivable based on the Company’s implementation of ASU 2016-13. The Company’s trade receivables primarily arise from the sale of our products to independent residential dealers, industrial distributors and dealers, national and regional retailers, equipment distributors, solar installers, and certain end users with payment terms generally ranging from 30 to 60 days. The Company evaluates the credit risk of a customer when extending credit based on a combination of various financial and qualitative factors that may The Company maintains an allowance for credit losses, which represents an estimate of expected losses over the remaining contractual life of its receivables considering current market conditions and estimates for supportable forecasts when appropriate. The Company measures expected credit losses on its trade receivables on an entity-by-entity basis. The estimate of expected credit losses considers a historical loss experience rate that is adjusted for delinquency trends, collection experience, and/or economic risk where appropriate. Additionally, management develops a specific allowance for trade receivables known to have a high risk of expected future credit loss. The Company has historically experienced immaterial write-offs given the nature of the customers that receive credit. As of March 31, 2023, the Company had gross receivables of $ 776,000 5,000 The following is a tabular reconciliation of the Company’s allowance for credit losses: SCHEDULE OF ALLOWANCES FOR CREDIT LOSSES March 31, 2023 December 31, 2022 As of March 31, 2023 December 31, 2022 (in thousands) Balance at beginning of period $ 10 $ 6 Provision for credit losses 2 3 Charge-offs, net of credits (7 ) 1 Balance at end of period $ 5 $ 10 |
INVENTORY
INVENTORY | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
INVENTORY | NOTE 5— INVENTORY SCHEDULE OF INVENTORY March 31, 2023 December 31, 2022 As of March 31, 2023 December 31, 2022 (in thousands) Raw materials $ 716 $ 684 Finished goods 88 105 Inventory net $ 804 $ 789 At March 31, 2023 and December 31, 2022, the Company’s inventory reserve was $ 6,000 4,000 |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2023 | |
Leases | |
LEASES | NOTE 6— 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 31,000 30,000 4.5% 308,000 4.5% Supplemental cash flow information related to leases consisted of the following (in thousands): SCHEDULE OF SUPPLEMENTAL CASH FLOW INFORMATION RELATED TO LEASES For the three months ending March 31, 2023 2022 Cash paid for operating lease liabilities $ 31 $ 30 Supplemental balance sheet information related to leases consisted of the following: SCHEDULE OF SUPPLEMENTAL BALANCE SHEET INFORMATION RELATED TO LEASES 2023 Weighted average remaining lease terms for operating leases 2.49 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 balance sheet as of March 31, 2023 (in thousands): SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS Year ended 2024 $ 129 2025 129 2026 67 Total undiscounted cash flows 325 Less: Imputed interest (17 ) Present value of operating lease liabilities (a) (a) $ 308 (a) Includes current portion of $ 118,000 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 6,100 2,220 SCHEDULE OF SUBLEASES Year ended 2024 $ 28 2025 28 2026 14 Total undiscounted cash flows $ 70 This sublease receivable is subject to review under ASU 2016-13, (see Notes 2 and 4); however, no credit losses are expected based on the Company’s implementation of ASU 2016-13. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 7— COMMITMENTS AND CONTINGENCIES The Company has $ 308,000 37,000 731,000 |
EQUITY
EQUITY | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
EQUITY | NOTE 8— EQUITY (a) General At March 31, 2023 the Company had issued and outstanding 39,757,589 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 March 31, 2023, 1,343,684 During the three months ended March 31, 2023, 55,000 35,000 15,000 no 25,000 On May 1, 2023, 10,000 0.35 3,000 No options were exercised in the three months ended March 31, 2023. The intrinsic value of options outstanding and of options exercisable at March 31, 2023 was $ 27,000 24,000 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): SCHEDULE OF BLACK-SCHOLES OPTION PRICING ESTIMATE FAIR VALUE Number of Options (in shares) Weighted Average Exercise Price Per Weighted Aggregate Outstanding at December 31, 2022 943,790 $ 0.42 4.3 $ 16,000 Granted 105,000 0.34 Exercised — Forfeited or expired (13,834 ) 0.40 Outstanding at March 31, 2023 1,034,956 $ 0.41 4.4 $ 27,000 Exercisable at March 31, 2023 858,008 $ 0.41 3.9 $ 24,000 The fair value of the options granted of $ 25,000 SCHEDULE OF STOCK OPTIONS FAIR VALUE ASSUMPTIONS ESTIMATED USING BLACK-SCHOLES PRICING MODEL Risk-free interest rate 3.90 % Expected term of options 5.0 Expected annual volatility 95.0 % 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 $ 17,000 31,000 The total compensation cost related to non-vested awards not yet recognized was $ 40,000 (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, 2022 35,000 $ 0.13 2.5 Granted — — Exercised (35,000 ) 0.13 Forfeited or expired — — Outstanding at March 31, 2023 — $ — — |
SEGMENT REPORTING
SEGMENT REPORTING | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | NOTE 9— SEGMENT REPORTING As of March 31, 2023, the Company operates in two reportable operating segments, both of which are performed through the Company’s OmniMetrix subsidiary: ● Power Generation (“PG”). ● Cathodic Protection (“CP”). TM The Company’s reportable segments are strategic business units, offering different products and services, and are managed separately as each business requires different technology and marketing strategies. The following tables represent segmented data for the three-month periods ended March 31, 2023 and 2022 (in thousands): SUMMARY OF SEGMENTED DATA PG CP Total Three months ended March 31, 2023: Revenues from external customers $ 1,507 $ 242 $ 1,749 Segment gross profit 1,179 137 1,316 Depreciation and amortization 33 5 38 Segment income (loss) before income taxes $ 199 $ (48 ) $ 151 Three months ended March 31, 2022: Revenues from external customers $ 1,445 $ 306 $ 1,751 Segment gross profit 1,073 185 1,258 Depreciation and amortization 17 3 20 Segment income (loss) before income taxes $ 189 $ (21 ) $ 168 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 Net Income (Loss) to Consolidated Net Loss Before Income Taxes SCHEDULE OF RECONCILIATION OF SEGMENT DATA TO CONSOLIDATED STATEMENT OF OPERATIONS 2023 2022 Three months ended March 31, 2023 2022 Total net income before income taxes for reportable segments $ 151 $ 168 Unallocated cost of corporate headquarters (235 ) (290 ) Consolidated net loss before income taxes $ (84 ) $ (122 ) |
REVENUE
REVENUE | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | NOTE 10— REVENUE The following table disaggregates the Company’s revenue for the three-month periods ended March 31, 2023 and 2022 (in thousands): SCHEDULE OF DISAGGREGATES OF REVENUE Hardware Monitoring Total Three months ended March 31, 2023: PG Segment $ 549 $ 958 $ 1,507 CP Segment 176 66 242 Total Revenue $ 725 $ 1,024 $ 1,749 Hardware Monitoring Total Three months ended March 31, 2022: PG Segment $ 523 $ 922 $ 1,445 CP Segment 238 68 306 Total Revenue $ 761 $ 990 $ 1,751 Deferred revenue activity for the three months ended March 31, 2023 can be seen in the table below (in thousands): SCHEDULE OF DEFERRED REVENUE ACTIVITY Hardware Monitoring Total Balance at December 31, 2022 $ 3,751 $ 2,420 $ 6,171 Additions during the period 548 1,106 1,654 Recognized as revenue (585 ) (1,024 ) (1,609 ) Balance at March 31, 2023 $ 3,714 $ 2,502 $ 6,216 Amounts to be recognized as revenue in the twelve-month-period ending: March 31, 2024 $ 2,006 $ 2,041 $ 4,047 March 31, 2025 1,303 459 1,762 March 31, 2026 and thereafter 405 2 407 $ 3,714 $ 2,502 $ 6,216 Other revenue of $ 140,000 Deferred COGS relate only to the sale of equipment. Deferred COGS activity for the three months ended March 31, 2023 can be seen in the table below (in thousands): SCHEDULE OF DEFERRED CHARGES ACTIVITY Balance at December 31, 2022 $ 1,694 Additions, net of adjustments, during the period 231 Recognized as cost of sales (268 ) Balance at March 31, 2023 $ 1,657 Amounts to be recognized as COGS in the twelve-month-period ending: March 31, 2024 $ 898 March 31, 2025 583 March 31, 2026 and thereafter 176 $ 1,657 Data costs paid to AT&T and the COGS related to sales of upgrade kits, accessories and repairs of $ 165,000 The following table provides a reconciliation of the Company’s sales commissions contract assets for the three-month period ended March 31, 2023 (in thousands): SCHEDULE OF SALES COMMISSIONS CONTRACT ASSETS Hardware Monitoring Total Balance at December 31, 2022 $ 319 $ 80 $ 399 Additions during the period 44 13 57 Amortization of sales commissions (47 ) (8 ) (55 ) Balance at March 31, 2023 $ 316 $ 85 $ 401 The capitalized sales commissions are included in other current assets ($ 203,000 198,000 196,000 203,000 Amounts to be recognized as sales commission expense in the twelve-month-period ending: SCHEDULE OF SALES COMMISSIONS EXPENSE March 31, 2024 $ 203 March 31, 2025 137 March 31, 2026 and thereafter 61 $ 401 The contract assets of deferred COGS and deferred sales commissions are subject to review under ASU 2016-13, see Notes 2 and 4, however, no credit losses on contract assets are expected based on the Company’s implementation of ASU 2016-13. |
RELATED PARTY BALANCES AND TRAN
RELATED PARTY BALANCES AND TRANSACTIONS | 3 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY BALANCES AND TRANSACTIONS | NOTE 11— RELATED PARTY BALANCES AND TRANSACTIONS Officer and Director Fees The Company recorded fees to officers of $ 130,000 The Company recorded fees to directors of $ 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 $ 3,487,000 3,677,000 190,000 254,000 44,000 19,000 1,000 162,000 275,000 44,000 19,000 50,000 |
ACCOUNTING POLICIES (Policies)
ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
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. |
Reclassification, Comparability Adjustment [Policy Text Block] | |
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 $ 1,346,000 at March 31, 2023. The Company does not believe there is a significant risk of non-performance by these counterparties. For the three-month periods ended March 31, 2023 and 2022, there were no customers that represented greater than 10 % of the Company’s total invoiced sales. Approximately 21 % of the accounts receivable at March 31, 2023 was due from one customer who pays its receivables over usual credit periods. Approximately 12% 160,000 , in the aggregate, due from the one customer as of March 31, 2023. Credit risk with respect to the balance of trade receivables is generally diversified due to the number of entities comprising the Company’s customer base. |
Inventory | Inventory Inventories are comprised of components (raw materials), work-in-process and finished goods, which are measured at net realizable value. Raw materials inventory is generally comprised of radios, cables, antennas, and electrical components. Finished goods inventory consists of fully assembled systems ready for final shipment to the customer. Costs are determined at cost of acquisition on a weighted average basis and include all outside production and applicable shipping costs. All inventories are periodically reviewed to identify slow-moving and obsolete inventory. Management conducted an assessment and wrote-off inventory carried at $ 3,000 no |
Basic and Diluted Net Loss Per Share | Basic and Diluted Net Loss Per Share Basic net loss per share is computed by dividing the net loss attributable to Acorn Energy, Inc. by the weighted average number of shares outstanding during the year, excluding treasury stock. Diluted net loss per share is computed by dividing the net 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 combined number of options and warrants that were excluded from the computation of diluted net loss per share, as they had an antidilutive effect, was 1,035,000 0.41 964,000 0.40 The following data represents the amounts used in computing EPS and the effect on net 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 2023 2022 Three months ended 2023 2022 Net loss attributable to common stockholders $ (85 ) $ (123 ) Weighted average shares outstanding: -Basic 39,734 39,688 Add: Warrants — — Add: Stock options — — -Diluted 39,734 39,688 Basic and diluted net loss per share $ 0.00 $ 0.00 |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards Other than the pronouncement noted below, there have been no recent accounting pronouncements or changes in accounting standards during the three-month period ended March 31, 2023. On January 1, 2023, the Company adopted ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This guidance was issued to provide financial statement users with more useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. Specifically, this guidance requires entities to utilize a new “expected loss” model as it relates to trade and other receivables. The adoption of the standard impacts the way the Company estimates the allowance for doubtful accounts on its trade and other receivables. Refer to Note 4, “Allowance for Credit Losses,” for further information regarding the Company’s allowance for expected credit losses. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In March 2023, the FASB issued Accounting standards update No. 2016-13 (“ASU 2016-13”), which amends the application of ASU 2016-02, Leases (Topic 842), |
ACCOUNTING POLICIES (Tables)
ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 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 2023 2022 Three months ended 2023 2022 Net loss attributable to common stockholders $ (85 ) $ (123 ) Weighted average shares outstanding: -Basic 39,734 39,688 Add: Warrants — — Add: Stock options — — -Diluted 39,734 39,688 Basic and diluted net loss per share $ 0.00 $ 0.00 |
ALLOWANCE FOR CREDIT LOSSES (Ta
ALLOWANCE FOR CREDIT LOSSES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
SCHEDULE OF ALLOWANCES FOR CREDIT LOSSES | The following is a tabular reconciliation of the Company’s allowance for credit losses: SCHEDULE OF ALLOWANCES FOR CREDIT LOSSES March 31, 2023 December 31, 2022 As of March 31, 2023 December 31, 2022 (in thousands) Balance at beginning of period $ 10 $ 6 Provision for credit losses 2 3 Charge-offs, net of credits (7 ) 1 Balance at end of period $ 5 $ 10 |
INVENTORY (Tables)
INVENTORY (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
SCHEDULE OF INVENTORY | SCHEDULE OF INVENTORY March 31, 2023 December 31, 2022 As of March 31, 2023 December 31, 2022 (in thousands) Raw materials $ 716 $ 684 Finished goods 88 105 Inventory net $ 804 $ 789 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 For the three months ending March 31, 2023 2022 Cash paid for operating lease liabilities $ 31 $ 30 |
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 2023 Weighted average remaining lease terms for operating leases 2.49 |
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 balance sheet as of March 31, 2023 (in thousands): SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS Year ended 2024 $ 129 2025 129 2026 67 Total undiscounted cash flows 325 Less: Imputed interest (17 ) Present value of operating lease liabilities (a) (a) $ 308 (a) Includes current portion of $ 118,000 |
SCHEDULE OF SUBLEASES | SCHEDULE OF SUBLEASES Year ended 2024 $ 28 2025 28 2026 14 Total undiscounted cash flows $ 70 |
EQUITY (Tables)
EQUITY (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
SCHEDULE OF BLACK-SCHOLES OPTION PRICING 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): SCHEDULE OF BLACK-SCHOLES OPTION PRICING ESTIMATE FAIR VALUE Number of Options (in shares) Weighted Average Exercise Price Per Weighted Aggregate Outstanding at December 31, 2022 943,790 $ 0.42 4.3 $ 16,000 Granted 105,000 0.34 Exercised — Forfeited or expired (13,834 ) 0.40 Outstanding at March 31, 2023 1,034,956 $ 0.41 4.4 $ 27,000 Exercisable at March 31, 2023 858,008 $ 0.41 3.9 $ 24,000 |
SCHEDULE OF STOCK OPTIONS FAIR VALUE ASSUMPTIONS ESTIMATED USING BLACK-SCHOLES PRICING MODEL | The fair value of the options granted of $ 25,000 SCHEDULE OF STOCK OPTIONS FAIR VALUE ASSUMPTIONS ESTIMATED USING BLACK-SCHOLES PRICING MODEL Risk-free interest rate 3.90 % Expected term of options 5.0 Expected annual volatility 95.0 % 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, 2022 35,000 $ 0.13 2.5 Granted — — Exercised (35,000 ) 0.13 Forfeited or expired — — Outstanding at March 31, 2023 — $ — — |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
SUMMARY OF SEGMENTED DATA | The following tables represent segmented data for the three-month periods ended March 31, 2023 and 2022 (in thousands): SUMMARY OF SEGMENTED DATA PG CP Total Three months ended March 31, 2023: Revenues from external customers $ 1,507 $ 242 $ 1,749 Segment gross profit 1,179 137 1,316 Depreciation and amortization 33 5 38 Segment income (loss) before income taxes $ 199 $ (48 ) $ 151 Three months ended March 31, 2022: Revenues from external customers $ 1,445 $ 306 $ 1,751 Segment gross profit 1,073 185 1,258 Depreciation and amortization 17 3 20 Segment income (loss) before income taxes $ 189 $ (21 ) $ 168 |
SCHEDULE OF RECONCILIATION OF SEGMENT DATA TO CONSOLIDATED STATEMENT OF OPERATIONS | Reconciliation of Segment Net Income (Loss) to Consolidated Net Loss Before Income Taxes SCHEDULE OF RECONCILIATION OF SEGMENT DATA TO CONSOLIDATED STATEMENT OF OPERATIONS 2023 2022 Three months ended March 31, 2023 2022 Total net income before income taxes for reportable segments $ 151 $ 168 Unallocated cost of corporate headquarters (235 ) (290 ) Consolidated net loss before income taxes $ (84 ) $ (122 ) |
REVENUE (Tables)
REVENUE (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
SCHEDULE OF DISAGGREGATES OF REVENUE | The following table disaggregates the Company’s revenue for the three-month periods ended March 31, 2023 and 2022 (in thousands): SCHEDULE OF DISAGGREGATES OF REVENUE Hardware Monitoring Total Three months ended March 31, 2023: PG Segment $ 549 $ 958 $ 1,507 CP Segment 176 66 242 Total Revenue $ 725 $ 1,024 $ 1,749 Hardware Monitoring Total Three months ended March 31, 2022: PG Segment $ 523 $ 922 $ 1,445 CP Segment 238 68 306 Total Revenue $ 761 $ 990 $ 1,751 |
SCHEDULE OF DEFERRED REVENUE ACTIVITY | Deferred revenue activity for the three months ended March 31, 2023 can be seen in the table below (in thousands): SCHEDULE OF DEFERRED REVENUE ACTIVITY Hardware Monitoring Total Balance at December 31, 2022 $ 3,751 $ 2,420 $ 6,171 Additions during the period 548 1,106 1,654 Recognized as revenue (585 ) (1,024 ) (1,609 ) Balance at March 31, 2023 $ 3,714 $ 2,502 $ 6,216 Amounts to be recognized as revenue in the twelve-month-period ending: March 31, 2024 $ 2,006 $ 2,041 $ 4,047 March 31, 2025 1,303 459 1,762 March 31, 2026 and thereafter 405 2 407 $ 3,714 $ 2,502 $ 6,216 |
SCHEDULE OF DEFERRED CHARGES ACTIVITY | Deferred COGS relate only to the sale of equipment. Deferred COGS activity for the three months ended March 31, 2023 can be seen in the table below (in thousands): SCHEDULE OF DEFERRED CHARGES ACTIVITY Balance at December 31, 2022 $ 1,694 Additions, net of adjustments, during the period 231 Recognized as cost of sales (268 ) Balance at March 31, 2023 $ 1,657 Amounts to be recognized as COGS in the twelve-month-period ending: March 31, 2024 $ 898 March 31, 2025 583 March 31, 2026 and thereafter 176 $ 1,657 |
SCHEDULE OF SALES COMMISSIONS CONTRACT ASSETS | The following table provides a reconciliation of the Company’s sales commissions contract assets for the three-month period ended March 31, 2023 (in thousands): SCHEDULE OF SALES COMMISSIONS CONTRACT ASSETS Hardware Monitoring Total Balance at December 31, 2022 $ 319 $ 80 $ 399 Additions during the period 44 13 57 Amortization of sales commissions (47 ) (8 ) (55 ) Balance at March 31, 2023 $ 316 $ 85 $ 401 |
SCHEDULE OF SALES COMMISSIONS EXPENSE | Amounts to be recognized as sales commission expense in the twelve-month-period ending: SCHEDULE OF SALES COMMISSIONS EXPENSE March 31, 2024 $ 203 March 31, 2025 137 March 31, 2026 and thereafter 61 $ 401 |
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 | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Accounting Policies [Abstract] | ||
Net loss attributable to common stockholders | $ (85) | $ (123) |
Weighted average shares outstanding: | ||
-Basic | 39,734 | 39,688 |
Add: Warrants | ||
Add: Stock options | ||
-Diluted | 39,734 | 39,688 |
Basic and diluted net loss per share | $ 0 | $ 0 |
ACCOUNTING POLICIES (Details Na
ACCOUNTING POLICIES (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Product Information [Line Items] | |||
Deposit Assets | $ 1,346,000 | ||
Inventory write off | $ 3,000 | $ 0 | |
Antidilutive securities excluded from computation of earnings per share, amount | 1,035,000 | 964,000 | |
Weighted average exercise price | 0.41 | 0.40 | |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | One Customer [Member] | |||
Product Information [Line Items] | |||
Concentration Risk, Percentage | 10% | ||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | One Customer [Member] | |||
Product Information [Line Items] | |||
Concentration Risk, Percentage | 21% | 12% | |
Debt Instrument, Periodic Payment, Principal | $ 160,000 |
LIQUIDITY (Details Narrative)
LIQUIDITY (Details Narrative) - USD ($) | 3 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | May 09, 2023 | Dec. 31, 2022 | |
Liquidity | ||||
Cash | $ 1,346,000 | $ 1,450,000 | ||
Working capital | 580,000 | |||
Deferred revenue | 4,047,000 | $ 3,984,000 | ||
Net increase (decrease) in cash | 104,000 | $ (62,000) | ||
Operating activities | 83,000 | (221,000) | ||
Investing activities | 26,000 | 159,000 | ||
Financing activities | $ 5,000 | |||
Cash | $ 1,543,000 |
SCHEDULE OF ALLOWANCES FOR CRED
SCHEDULE OF ALLOWANCES FOR CREDIT LOSSES (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Receivables [Abstract] | ||
Balance at beginning of period | $ 10 | $ 6 |
Provision for credit losses | 2 | 3 |
Charge-offs, net of credits | (7) | 1 |
Balance at end of period | $ 5 | $ 10 |
ALLOWANCE FOR CREDIT LOSSES (De
ALLOWANCE FOR CREDIT LOSSES (Details Narrative) | Mar. 31, 2023 USD ($) |
Receivables [Abstract] | |
Gross receivables | $ 776,000 |
Allowances for credit losses | $ 5,000 |
SCHEDULE OF INVENTORY (Details)
SCHEDULE OF INVENTORY (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 716 | $ 684 |
Finished goods | 88 | 105 |
Inventory net | $ 804 | $ 789 |
INVENTORY (Details Narrative)
INVENTORY (Details Narrative) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Inventory valuation reserves | $ 6,000 | $ 4,000 |
SCHEDULE OF SUPPLEMENTAL CASH F
SCHEDULE OF SUPPLEMENTAL CASH FLOW INFORMATION RELATED TO LEASES (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Leases | ||
Cash paid for operating lease liabilities | $ 31 | $ 30 |
SCHEDULE OF SUPPLEMENTAL BALANC
SCHEDULE OF SUPPLEMENTAL BALANCE SHEET INFORMATION RELATED TO LEASES (Details) | Mar. 31, 2023 |
Leases | |
Weighted average remaining lease terms for operating leases | 2 years 5 months 26 days |
SCHEDULE OF FUTURE MINIMUM LEAS
SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS (Details) | Mar. 31, 2023 USD ($) | |
Leases | ||
2024 | $ 129,000 | |
2025 | 129,000 | |
2026 | 67,000 | |
Total undiscounted cash flows | 325,000 | |
Less: Imputed interest | (17,000) | |
Present value of operating lease liabilities (a) | $ 308,000 | [1] |
[1]Includes current portion of $ 118,000 |
SCHEDULE OF FUTURE MINIMUM LE_2
SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS (Details) (Parenthetical) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Leases | ||
Operating leases current portion | $ 118,000 | $ 116,000 |
SCHEDULE OF SUBLEASES (Details)
SCHEDULE OF SUBLEASES (Details) $ in Thousands | Mar. 31, 2023 USD ($) |
Leases | |
2024 | $ 28 |
2025 | 28 |
2026 | 14 |
Total undiscounted cash flows | $ 70 |
LEASES (Details Narrative)
LEASES (Details Narrative) | 1 Months Ended | 3 Months Ended | |||
Jul. 06, 2021 USD ($) ft² | Apr. 30, 2019 | Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Operating lease discount rate | 4.50% | ||||
Operating lease payments | [1] | $ 308,000 | |||
Sublease payment | $ 2,375 | ||||
Estimated sublease payments | 6,100 | ||||
Annual service cost | $ 2,220 | ||||
King Industrial Reality Inc [Member] | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Office and production space | ft² | 1,900 | ||||
King Industrial Realty Inc [Member] | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Office and production space | ft² | 21,000 | ||||
Operating Lease Agreements [Member] | Omni Metrix Holdings, Inc. [Member] | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Lease description | The office equipment lease was entered into in April 2019 and has a sixty-month term | ||||
Operating lease payments | $ 31,000 | $ 30,000 | |||
[1]Includes current portion of $ 118,000 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) | 3 Months Ended | |
Mar. 31, 2023 USD ($) | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Operating lease obligations payable | $ 308,000 | [1] |
Master Services Agreement [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Operating lease obligations payable | 308,000 | |
Operating leases and contractual services | 37,000 | |
Commitment payable | $ 731,000 | |
[1]Includes current portion of $ 118,000 |
SCHEDULE OF BLACK-SCHOLES OPTIO
SCHEDULE OF BLACK-SCHOLES OPTION PRICING ESTIMATE FAIR VALUE (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Equity [Abstract] | ||
Number of Options (in shares), Outstanding at beginning of year | 943,790 | |
Weighted Average Exercise Price Per Share, Outstanding at beginning of year | $ 0.42 | |
Weighted average remaining contractual life at end | 4 years 4 months 24 days | 4 years 3 months 18 days |
Aggregate intrinsic value at beginning of year | $ 16,000 | |
Number of Options (in shares), Granted at market price | 105,000 | |
Weighted Average Exercise Price Per Share, Granted | $ 0.34 | |
Weighted Average Exercise Price Per Share, Exercised | ||
Number of Options (in shares), Forfeited or expired | (13,834) | |
Weighted Average Exercise Price Per Share, Forfeited or expired | $ 0.40 | |
Number of Options (in shares), Outstanding at end of year | 1,034,956 | 943,790 |
Weighted Average Exercise Price Per Share, Outstanding at end of year | $ 0.41 | $ 0.42 |
Aggregate intrinsic value at end of year | $ 27,000 | $ 16,000 |
Number of Options (in shares), Exercisable at end of year | 858,008 | |
Weighted Average Exercise Price Per Share, Exercisable at end of year | $ 0.41 | |
Weighted average remaining contractual life at exercisable at end of year | 3 years 10 months 24 days | |
Aggregate intrinsic value, Exercisable at end of year | $ 24,000 |
SCHEDULE OF STOCK OPTIONS FAIR
SCHEDULE OF STOCK OPTIONS FAIR VALUE ASSUMPTIONS ESTIMATED USING BLACK-SCHOLES PRICING MODEL (Details) | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Equity [Abstract] | |
Fair value of options granted | $ 25,000 |
Risk-free interest rate | 3.90% |
Expected term of options, in years | 5 years |
Expected annual volatility | 95% |
Expected dividend yield |
SUMMARY OF WARRANT ACTIVITY (De
SUMMARY OF WARRANT ACTIVITY (Details) - Warrant [Member] - $ / shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
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 | 2 months 15 days | |
Number of Warrants (in Shares), Granted | ||
Weighted Average Exercise Price Per Share, Granted | ||
Number of Warrants (in Shares), Exercised | (35,000) | |
Weighted Average Exercise Price Per Share, Exercised | $ 0.13 | |
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 | |
Weighted Average Exercise Price Per Share, Outstanding at end balance | $ 0.13 |
EQUITY (Details Narrative)
EQUITY (Details Narrative) - USD ($) | 3 Months Ended | |||
May 01, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Common stock, shares outstanding | 39,757,589 | 39,722,589 | ||
Common stock, par value | $ 0.01 | $ 0.01 | ||
Number of options granted during period | 105,000 | |||
Fair value of options granted during period | $ 25,000 | |||
Exercise price | $ 0.41 | $ 0.42 | ||
Intrinsic value of options outstanding | $ 27,000 | $ 16,000 | ||
Intrinsic value of options outstanding | 24,000 | |||
Compensation cost, non-vested awards not yet recognized | 40,000 | |||
Selling, General and Administrative Expenses [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Stock based compensation expense | 17,000 | $ 31,000 | ||
Options Held [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Intrinsic value of options outstanding | 27,000 | |||
Intrinsic value of options outstanding | $ 24,000 | |||
Director [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Number of options granted during period | 55,000 | |||
Chief Executive Officer [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Number of options granted during period | 35,000 | |||
Employees [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Number of options granted during period | 15,000 | |||
Non Employees [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Number of options granted during period | 0 | |||
Director Of Software Development And Technology [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Stock options issued | 10,000 | |||
Exercise price | $ 0.35 | |||
Stock options issued | $ 3,000 | |||
Amended and Restated 2006 Stock Incentive Plan [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Number of options available for grant | 1,343,684 |
SUMMARY OF SEGMENTED DATA (Deta
SUMMARY OF SEGMENTED DATA (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting Information [Line Items] | ||
Revenue from external customers | $ 1,749 | $ 1,751 |
Segment gross profit | 1,316 | 1,258 |
Depreciation and amortization | 38 | 20 |
Segment income (loss) before income taxes | 151 | 168 |
PG [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue from external customers | 1,507 | 1,445 |
Segment gross profit | 1,179 | 1,073 |
Depreciation and amortization | 33 | 17 |
Segment income (loss) before income taxes | 199 | 189 |
CP [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue from external customers | 242 | 306 |
Segment gross profit | 137 | 185 |
Depreciation and amortization | 5 | 3 |
Segment income (loss) before income taxes | $ (48) | $ (21) |
SCHEDULE OF RECONCILIATION OF S
SCHEDULE OF RECONCILIATION OF SEGMENT DATA TO CONSOLIDATED STATEMENT OF OPERATIONS (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting [Abstract] | ||
Total net income before income taxes for reportable segments | $ 151 | $ 168 |
Unallocated cost of corporate headquarters | (235) | (290) |
Loss before income taxes | $ (84) | $ (122) |
SCHEDULE OF DISAGGREGATES OF RE
SCHEDULE OF DISAGGREGATES OF REVENUE (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Total Revenue | $ 1,749 | $ 1,751 |
PG [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 1,507 | 1,445 |
CP [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 242 | 306 |
Hardware [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 725 | 761 |
Hardware [Member] | PG [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 549 | 523 |
Hardware [Member] | CP [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 176 | 238 |
Monitoring [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 1,024 | 990 |
Monitoring [Member] | PG [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 958 | 922 |
Monitoring [Member] | CP [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | $ 66 | $ 68 |
SCHEDULE OF DEFERRED REVENUE AC
SCHEDULE OF DEFERRED REVENUE ACTIVITY (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Disaggregation of Revenue [Line Items] | |
Balance at December 31, 2022 | $ 6,171 |
Additions during the period | 1,654 |
Recognized as revenue | (1,609) |
Balance at March 31, 2023 | 6,216 |
December 30, 2023 | 4,047 |
December 30, 2024 | 1,762 |
December, 2025 and thereafter | 407 |
Total | 6,216 |
Hardware [Member] | |
Disaggregation of Revenue [Line Items] | |
Balance at December 31, 2022 | 3,751 |
Additions during the period | 548 |
Recognized as revenue | (585) |
Balance at March 31, 2023 | 3,714 |
December 30, 2023 | 2,006 |
December 30, 2024 | 1,303 |
December, 2025 and thereafter | 405 |
Total | 3,714 |
Monitoring [Member] | |
Disaggregation of Revenue [Line Items] | |
Balance at December 31, 2022 | 2,420 |
Additions during the period | 1,106 |
Recognized as revenue | (1,024) |
Balance at March 31, 2023 | 2,502 |
December 30, 2023 | 2,041 |
December 30, 2024 | 459 |
December, 2025 and thereafter | 2 |
Total | $ 2,502 |
SCHEDULE OF DEFERRED CHARGES AC
SCHEDULE OF DEFERRED CHARGES ACTIVITY (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Balance at December 31, 2022 | $ 1,694 |
Additions, net of adjustments, during the period | 231 |
Recognized as cost of sales | (268) |
Balance at March 31, 2023 | 1,657 |
March 31, 2024 | 898 |
March 31, 2025 | 583 |
March 31, 2026 and thereafter | 176 |
March 31, 2025 | $ 1,657 |
SCHEDULE OF SALES COMMISSIONS C
SCHEDULE OF SALES COMMISSIONS CONTRACT ASSETS (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Disaggregation of Revenue [Line Items] | |
Balance at December 31, 2022 | $ 399 |
Additions during the period | 57 |
Amortization of sales commissions | (55) |
Balance at March 31, 2023 | 401 |
Hardware [Member] | |
Disaggregation of Revenue [Line Items] | |
Balance at December 31, 2022 | 319 |
Additions during the period | 44 |
Amortization of sales commissions | (47) |
Balance at March 31, 2023 | 316 |
Monitoring [Member] | |
Disaggregation of Revenue [Line Items] | |
Balance at December 31, 2022 | 80 |
Additions during the period | 13 |
Amortization of sales commissions | (8) |
Balance at March 31, 2023 | $ 85 |
SCHEDULE OF SALES COMMISSIONS E
SCHEDULE OF SALES COMMISSIONS EXPENSE (Details) $ in Thousands | Mar. 31, 2023 USD ($) |
Revenue from Contract with Customer [Abstract] | |
March 31, 2024 | $ 203 |
March 31, 2025 | 137 |
March 31, 2026 and thereafter | 61 |
$ 401 |
REVENUE (Details Narrative)
REVENUE (Details Narrative) - USD ($) | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 1,749,000 | $ 1,751,000 | |
Data costs (COGS) | 433,000 | $ 493,000 | |
Other current assets | 312,000 | $ 288,000 | |
Capitalized Sales Commissions [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Other current assets | 203,000 | 196,000 | |
Other assets | 198,000 | $ 203,000 | |
Other Revenue Related to Accessories, Repairs and Other Miscellaneous Charges [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 140,000 | ||
Upgrade Kits Accessories And Repairs [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Data costs (COGS) | $ 165,000 |
RELATED PARTY BALANCES AND TR_2
RELATED PARTY BALANCES AND TRANSACTIONS (Details Narrative) - USD ($) | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
OmniMetrix, LLC [Member] | |||
Related Party Transaction [Line Items] | |||
Increase decrease in related parties | $ 190,000 | $ 162,000 | |
Debt repayment | 254,000 | 275,000 | |
Interest | 44,000 | 44,000 | |
Dividends | 19,000 | 19,000 | |
Related Party [Member] | |||
Related Party Transaction [Line Items] | |||
Due from Acomon omnimetrix's | 3,487,000 | $ 3,677,000 | |
Related party expenses paid | 1,000 | 50,000 | |
Officer [Member] | |||
Related Party Transaction [Line Items] | |||
Consulting and other fees to officer | 130,000 | 130,000 | |
Director [Member] | |||
Related Party Transaction [Line Items] | |||
Consulting and other fees to directors | $ 15,000 | $ 15,000 |