Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 07, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2023 | |
Document Fiscal Period Focus | Q3 | |
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 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 | 2,484,791 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | |
Current assets: | |||
Cash | $ 1,749 | $ 1,450 | |
Accounts receivable, net | 583 | 597 | |
Inventory, net | 909 | 789 | |
Deferred cost of goods sold (COGS) | 890 | 887 | |
Other current assets | 343 | 288 | |
Total current assets | 4,474 | 4,011 | |
Property and equipment, net | 610 | 653 | |
Operating right-of-use assets, net | 220 | 298 | |
Deferred COGS | 642 | 807 | |
Other assets | 209 | 215 | |
Total assets | 6,155 | 5,984 | |
Current liabilities: | |||
Accounts payable | 444 | 243 | |
Accrued expenses | 127 | 171 | |
Deferred revenue | 4,270 | 3,984 | |
Operating lease liabilities | 121 | 116 | |
Other current liabilities | 25 | 58 | |
Total current liabilities | 4,987 | 4,572 | |
Long-term liabilities: | |||
Deferred revenue | 1,941 | 2,187 | |
Operating lease liabilities | 129 | 220 | |
Other long-term liabilities | 19 | 16 | |
Total long-term liabilities | 2,089 | 2,423 | |
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 – 2,484,791 and 2,482,604 shares at September 30, 2023 and December 31, 2022, respectively | [1] | 25 | 25 |
Additional paid-in capital | [1] | 103,312 | 103,261 |
Accumulated stockholders’ deficit | (101,232) | (101,267) | |
Treasury stock, at cost – 50,178 and 50,178 shares at September 30, 2023 and December 31, 2022 | [1] | (3,036) | (3,036) |
Total Acorn Energy, Inc. stockholders’ deficit | (931) | (1,017) | |
Non-controlling interest | 10 | 6 | |
Total stockholders’ deficit | (921) | (1,011) | |
Total liabilities and stockholders’ deficit | $ 6,155 | $ 5,984 | |
[1]Includes effects of a 1-for-16 reverse stock split |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 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 | 2,484,791 | 2,482,604 |
Common stock, shares outstanding | 2,484,791 | 2,482,604 |
Treasury stock, shares | 50,178 | 50,178 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | ||
Income Statement [Abstract] | |||||
Revenue | $ 2,087 | $ 1,783 | $ 5,809 | $ 5,155 | |
COGS | 537 | 568 | 1,453 | 1,436 | |
Gross profit | 1,550 | 1,215 | 4,356 | 3,719 | |
Operating expenses: | |||||
Research and development (R&D) expense | 212 | 227 | 614 | 637 | |
Selling, general and administrative (SG&A) expense | 1,330 | 1,198 | 3,746 | 3,585 | |
Impairment of software | 51 | ||||
Total operating expenses | 1,542 | 1,425 | 4,360 | 4,273 | |
Operating (loss) income | 8 | (210) | (4) | (554) | |
Interest income (expense), net | 19 | 46 | (1) | ||
Income (loss) before income taxes | 27 | (210) | 42 | (555) | |
Income tax expense | |||||
Net income (loss) | 27 | (210) | 42 | (555) | |
Non-controlling interest share of net income | (3) | (7) | (1) | ||
Net income (loss) attributable to Acorn Energy, Inc. stockholders | $ 24 | $ (210) | $ 35 | $ (556) | |
Basic net income (loss) per share | [1] | $ 0.01 | $ (0.08) | $ 0.01 | $ (0.22) |
Diluted net income (loss) per share | [1] | $ 0.01 | $ (0.08) | $ 0.01 | $ (0.22) |
Weighted average number of shares outstanding attributable to Acorn Energy, Inc. stockholders – basic and diluted | |||||
Basic | [1] | 2,485 | 2,481 | 2,484 | 2,481 |
Diluted | [1] | 2,532 | 2,481 | 2,506 | 2,481 |
[1]Includes effects of a 1-for-16 reverse stock split. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Stockholders' Deficit (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | [1] | Retained Earnings [Member] | Treasury Stock, Common [Member] | Parent [Member] | Noncontrolling Interest [Member] | Total | ||||
Balance at Dec. 31, 2021 | $ 25 | [1] | $ 103,176 | $ (100,634) | $ (3,036) | [1] | $ (469) | $ 8 | $ (461) | |||
Balance, shares at Dec. 31, 2021 | [1] | 2,480 | 50 | |||||||||
Net income (loss) | [1] | (123) | [1] | (123) | 1 | (122) | ||||||
Accrued dividend on OmniMetrix preferred shares | [1] | [1] | (1) | (1) | ||||||||
Stock option compensation | [1] | 31 | [1] | 31 | 31 | |||||||
Balance at Mar. 31, 2022 | $ 25 | [1] | 103,207 | (100,757) | $ (3,036) | [1] | (561) | 8 | (553) | |||
Balance, shares at Mar. 31, 2022 | [1] | 2,480 | 50 | |||||||||
Balance at Dec. 31, 2021 | $ 25 | [1] | 103,176 | (100,634) | $ (3,036) | [1] | (469) | 8 | (461) | |||
Balance, shares at Dec. 31, 2021 | [1] | 2,480 | 50 | |||||||||
Net income (loss) | (555) | |||||||||||
Balance at Sep. 30, 2022 | $ 25 | [1] | 103,250 | (101,190) | $ (3,036) | [1] | (951) | 6 | (945) | |||
Balance, shares at Sep. 30, 2022 | [1] | 2,482 | 50 | |||||||||
Balance at Mar. 31, 2022 | $ 25 | [1] | 103,207 | (100,757) | $ (3,036) | [1] | (561) | 8 | (553) | |||
Balance, shares at Mar. 31, 2022 | [1] | 2,480 | 50 | |||||||||
Net income (loss) | [1] | (223) | [1] | (223) | [2] | (223) | ||||||
Accrued dividend on OmniMetrix preferred shares | [1] | [1] | (1) | (1) | ||||||||
Stock option compensation | [1] | 22 | [1] | 22 | 22 | |||||||
Balance at Jun. 30, 2022 | $ 25 | [1] | 103,229 | (100,980) | $ (3,036) | [1] | (762) | 7 | (755) | |||
Balance, shares at Jun. 30, 2022 | [1] | 2,480 | 50 | |||||||||
Net income (loss) | [1] | (210) | [1] | (210) | (210) | |||||||
Accrued dividend on OmniMetrix preferred shares | [1] | [1] | (1) | (1) | ||||||||
Stock option compensation | [1] | 16 | [1] | 16 | 16 | |||||||
Proceeds from stock option exercise | [1],[2] | 5 | [1] | 5 | 5 | |||||||
Balance, shares | [1] | 2 | ||||||||||
Balance at Sep. 30, 2022 | $ 25 | [1] | 103,250 | (101,190) | $ (3,036) | [1] | (951) | 6 | (945) | |||
Balance, shares at Sep. 30, 2022 | [1] | 2,482 | 50 | |||||||||
Balance at Dec. 31, 2022 | $ 25 | [1] | 103,261 | (101,267) | $ (3,036) | [1] | (1,017) | 6 | (1,011) | |||
Balance, shares at Dec. 31, 2022 | [1] | 2,483 | 50 | |||||||||
Net income (loss) | [1] | (85) | [1] | (85) | 1 | (84) | ||||||
Proceeds from warrant exercise | [1],[2] | 5 | [1] | 5 | 5 | |||||||
Balance, shares | [1] | 2 | ||||||||||
Accrued dividend on OmniMetrix preferred shares | [1] | [1] | (1) | (1) | ||||||||
Stock option compensation | [1] | 17 | [1] | 17 | 17 | |||||||
Balance at Mar. 31, 2023 | $ 25 | [1] | 103,283 | (101,352) | $ (3,036) | [1] | (1,080) | 6 | (1,074) | |||
Balance, shares at Mar. 31, 2023 | [1] | 2,485 | 50 | |||||||||
Balance at Dec. 31, 2022 | $ 25 | [1] | 103,261 | (101,267) | $ (3,036) | [1] | (1,017) | 6 | (1,011) | |||
Balance, shares at Dec. 31, 2022 | [1] | 2,483 | 50 | |||||||||
Net income (loss) | 42 | |||||||||||
Balance at Sep. 30, 2023 | $ 25 | [1] | 103,312 | (101,232) | $ (3,036) | [1] | (931) | 10 | (921) | |||
Balance, shares at Sep. 30, 2023 | [1] | 2,485 | 50 | |||||||||
Balance at Mar. 31, 2023 | $ 25 | [1] | 103,283 | (101,352) | $ (3,036) | [1] | (1,080) | 6 | (1,074) | |||
Balance, shares at Mar. 31, 2023 | [1] | 2,485 | 50 | |||||||||
Net income (loss) | [1] | 96 | [1] | 96 | 3 | 99 | ||||||
Accrued dividend on OmniMetrix preferred shares | [1] | [1] | (1) | (1) | ||||||||
Stock option compensation | [1] | 13 | [1] | 13 | 13 | |||||||
Balance at Jun. 30, 2023 | $ 25 | [1] | 103,296 | (101,256) | $ (3,036) | [1] | (971) | 8 | (963) | |||
Balance, shares at Jun. 30, 2023 | [1] | 2,485 | 50 | |||||||||
Net income (loss) | [1] | 24 | [1] | 24 | 3 | 27 | ||||||
Accrued dividend on OmniMetrix preferred shares | [1] | [1] | (1) | (1) | ||||||||
Stock option compensation | [1] | 16 | [1] | 16 | 16 | |||||||
Balance at Sep. 30, 2023 | $ 25 | [1] | $ 103,312 | $ (101,232) | $ (3,036) | [1] | $ (931) | $ 10 | $ (921) | |||
Balance, shares at Sep. 30, 2023 | [1] | 2,485 | 50 | |||||||||
[1]Includes effects of a 1-for-16 reverse stock split.[2]Less than $1. |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash flows provided by (used in) operating activities: | ||
Net income (loss) | $ 42 | $ (555) |
Depreciation and amortization | 115 | 83 |
Impairment of inventory | 9 | 31 |
Impairment of software | 51 | |
Non-cash lease expense | 96 | 93 |
Stock-based compensation | 46 | 69 |
Change in operating assets and liabilities: | ||
Decrease (increase) in accounts receivable | 14 | (41) |
Increase in inventory | (129) | (317) |
Decrease (increase) in deferred COGS | 162 | (158) |
Increase in other current assets and other assets | (49) | (62) |
Increase (decrease) in accounts payable and accrued expenses | 157 | (91) |
Increase in deferred revenue | 40 | 660 |
Decrease in operating lease liability | (104) | (97) |
(Decrease) increase in other current liabilities and non-current liabilities | (33) | 23 |
Net cash provided by (used in) operating activities | 366 | (311) |
Cash flows used in investing activities: | ||
Investments in technology | (70) | (286) |
Other capital investments | (2) | (6) |
Net cash used in investing activities | (72) | (292) |
Cash flows provided by financing activities: | ||
Stock option exercise proceeds | 5 | |
Warrant exercise proceeds | 5 | |
Net cash provided by financing activities | 5 | 5 |
Net increase (decrease) in cash | 299 | (598) |
Cash at the beginning of the year | 1,450 | 1,722 |
Cash at the end of the period | 1,749 | 1,124 |
Cash paid during the period for: | ||
Interest | 2 | 1 |
Non-cash investing and financing activities: | ||
Accrued preferred dividends to former CEO of OmniMetrix | $ 3 | $ 3 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 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. (“Acorn”) and its subsidiaries, OmniMetrix, LLC (“OmniMetrix”) and OMX Holdings, Inc. (collectively, with Acorn and OmniMetrix, “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 nine- and three-month periods ended September 30, 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. Reverse Stock Split On September 5, 2023, the Board of Directors of Acorn approved a Certificate of Amendment to Acorn’s Restated Certificate of Incorporation (the “Certificate of Amendment”) that provided for a 1-for-16 reverse stock split 347 |
ACCOUNTING POLICIES
ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 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 consolidated financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. As applicable to these unaudited condensed consolidated financial statements, the most significant estimates and assumptions relate to uncertainties with respect to revenue recognition and management’s projections related to the going concern analysis 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 $ 1,749,000 10 11 10 12 Inventory Inventories are comprised of components (raw materials), work-in-process and finished goods, which are measured at the lower of cost or 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 $ 9,000 1,000 Revenue Recognition On September 1, 2023, OmniMetrix launched an updated version of its products that includes new functionality in its TrueGuard, AIRGuard, Patriot and Hero products that allows its customers to have options as it relates to obtaining and utilizing the data that is provided by its hardware devices. This new functionality allows for SIM card options, configuration options regarding IP address endpoints and DNS routes, and access to OmniMetrix’s over-the-air data protocol. This product update allows customers to have the option to purchase OmniMetrix’s monitoring service, monitor the products themselves if they have the ability in-house, or choose another monitoring provider if they so desire. OmniMetrix’s prior hardware product version could not function as a distinct product from its monitoring services. This new version’s functionality results in OmniMetrix’s hardware and monitoring services being capable of being two distinct products and services. OmniMetrix recognizes revenue, COGS and commissions from the sale of the new version of its hardware products sold when the product is shipped rather than over the estimated time that the unit is in service for the customer. Monitoring revenue continues to be deferred and amortized over the period that the monitoring services are rendered. The remaining balance of deferred revenue from the prior version of these products will continue to be amortized each period until it is fully amortized. The modification to the circuit boards and embedded firmware of hardware enclosures in inventory as of August 31, 2023 were made such that only the new version of these products was sold subsequent to this date. Basic and Diluted Net Income (Loss) Per Share Basic net income (loss) per share is computed by dividing the net income (loss) attributable to Acorn Energy, Inc. by the weighted average number of shares outstanding during the period, excluding treasury stock. Diluted net income (loss) per share is computed by dividing the net income (loss) by the weighted average number of shares outstanding plus the dilutive potential of common shares which would result from the exercise of stock options. The dilutive effects of stock options are excluded from the computation of diluted net income (loss) per share if doing so would be antidilutive. For the nine-month period ending September 30, 2023, the weighted average number of options that were excluded from the computation of diluted net loss, as they had an antidilutive effect, was 6,000 8.49 60,000 6.72 2,187 2.08 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 2023 2022 2023 2022 Nine months ended September 30, Three months ended September 30, 2023 2022 2023 2022 Net income (loss) available to common stockholders $ 35 $ (556 ) $ 24 $ (210 ) Weighted average share outstanding: Basic 2,484 2,481 2,485 2,481 Add: Stock options 22 — 47 — Diluted 2,506 2,481 2,532 2,481 Basic and diluted net income (loss) per share $ 0.01 $ (0.22 ) $ 0.01 $ (0.08 ) Recently Adopted Accounting Standards Other than the pronouncement noted below, there have been no recent accounting pronouncements or changes in accounting standards during the nine-month period ended September 30, 2023 that would affect the Company’s condensed consolidated financial statements. 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. |
LIQUIDITY
LIQUIDITY | 9 Months Ended |
Sep. 30, 2023 | |
Liquidity | |
LIQUIDITY | NOTE 3— LIQUIDITY As of September 30, 2023, the Company had cash of $ 1,749,000 At September 30, 2023, the Company had negative working capital of $ 513,000 1,749,000 4,270,000 299,000 366,000 72,000 5,000 As of November 7, 2023, the Company had cash of $ 1,684,000 |
ALLOWANCE FOR CREDIT LOSSES
ALLOWANCE FOR CREDIT LOSSES | 9 Months Ended |
Sep. 30, 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, 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 affect the customer’s ability to pay. These factors include the customer’s financial condition and past payment experience. 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 September 30, 2023, the Company had gross receivables of $ 590,000 7,000 The following is a tabular reconciliation of the Company’s allowance for credit losses: SCHEDULE OF ALLOWANCES FOR CREDIT LOSSES September 30, 2023 December 31, 2022 As of September 30, 2023 December 31, 2022 (in thousands) Balance at beginning of period $ 10 $ 6 Provision for credit losses 3 3 Net (charge-offs) credits (6 ) 1 Balance at end of period $ 7 $ 10 |
INVENTORY
INVENTORY | 9 Months Ended |
Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |
INVENTORY | NOTE 5— INVENTORY SCHEDULE OF INVENTORY September 30, 2023 December 31, 2022 As of September 30, 2023 December 31, 2022 (in thousands) Raw materials $ 859 $ 684 Finished goods 50 105 Inventory net $ 909 $ 789 At September 30, 2023 and December 31, 2022, the Company’s inventory reserve was $ 9,000 4,000 All inventories are periodically reviewed to identify slow-moving and obsolete inventory. Management conducted an assessment and wrote-off inventory carried at $ 9,000 1,000 |
LEASES
LEASES | 9 Months Ended |
Sep. 30, 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 96,000 93,000 33,000 31,000 4.5 250,000 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 Nine Months Ending September 30, 2023 2022 Cash paid for operating lease liabilities $ 96 $ 93 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 1.99 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 September 30, 2023 (in thousands): SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS Year ended September 30, 2024 $ 129 2025 132 Total undiscounted cash flows 261 Less: Imputed interest (11 ) Present value of operating lease liabilities (a) $ 250 (a) Includes current portion of $ 121,000 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 SUB LEASES Year ended September 30, 2024 $ 28 2025 29 Total undiscounted cash flows $ 57 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 7— COMMITMENTS AND CONTINGENCIES The Company has $ 250,000 15,000 603,000 |
EQUITY
EQUITY | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
EQUITY | NOTE 8— EQUITY (a) General Reverse Stock Split On September 5, 2023, the Board of Directors of Acorn approved a Certificate of Amendment to Acorn’s Restated Certificate of Incorporation that provided for a 1-for-16 reverse stock split 2,484,791 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 September 30, 2023, 77,540 During the nine months ended September 30, 2023, 13,436 No 3,437 2,187 6,250 1,562 no No options were exercised in the nine and three months ended September 30, 2023. The intrinsic value of options outstanding and of options exercisable at September 30, 2023 was $ 38,000 SCHEDULE OF BLACK-SCHOLES OPTION PRICING 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, 2022 58,966 $ 6.71 4.3 $ 16,000 Granted 13,436 5.24 Exercised — — Forfeited or expired (1,280 ) 6.48 Outstanding at September 30, 2023 71,122 $ 6.44 4.2 $ 46,000 Exercisable at September 30, 2023 61,786 $ 6.49 3.9 $ 38,000 The fair value of the options granted of $ 46,000 SCHEDULE OF STOCK OPTIONS FAIR VALUE ASSUMPTIONS ESTIMATED USING BLACK-SCHOLES Risk-free interest rate 3.9 % Expected term of options 4.1 Expected annual volatility 94.5 % Expected dividend yield — % (c) Stock-based Compensation Expense Stock-based compensation expense included in SG&A expenses in the Company’s unaudited condensed consolidated statements of operations was $ 46,000 69,000 16,000 16,000 The total compensation cost related to non-vested awards not yet recognized was $ 17,000 43,000 (d) Warrants The Company previously issued warrants at exercise prices equal to or greater than the 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, 2022 2,187 $ 2.08 2.5 Granted — — Exercised (2,187 ) 2.08 Forfeited or expired — — Outstanding at September 30, 2023 — $ — — |
SEGMENT REPORTING
SEGMENT REPORTING | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | NOTE 9— SEGMENT REPORTING As of September 30, 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 nine-month and three-month periods ended September 30, 2023 and 2022 (in thousands): SUMMARY OF SEGMENTED DATA PG CP Total Nine months ended September 30, 2023: Revenues from external customers $ 4,994 $ 815 $ 5,809 Segment gross profit 3,876 480 4,356 Depreciation and amortization 99 16 115 Segment income (loss) before income taxes $ 891 $ (35 ) $ 856 Nine months ended September 30, 2022: Revenues from external customers $ 4,335 $ 820 $ 5,155 Segment gross profit 3,256 463 3,719 Depreciation and amortization 72 13 85 Segment income (loss) before income taxes* $ 340 $ (103 ) $ 237 Three months ended September 30, 2023: Revenues from external customers $ 1,798 $ 289 $ 2,087 Segment gross profit 1,381 169 1,550 Depreciation and amortization 36 5 41 Segment income before income taxes $ 361 $ 5 $ 366 Three months ended September 30, 2022: Revenues from external customers $ 1,510 $ 273 $ 1,783 Segment gross profit 1,092 123 1,215 Depreciation and amortization 31 5 36 Segment income (loss) before income taxes $ 78 $ (58 ) $ 20 * Software impairment of $ 51,000 is not related to a specific segment and, thus, is not included in the “Total net income before income taxes for reportable segments” for the nine months ended September 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 Income (Loss) to Consolidated Net Income (Loss) Before Income Taxes SCHEDULE OF RECONCILIATION OF SEGMENT DATA TO CONSOLIDATED STATEMENT OF OPERATIONS 2023 2022 2023 2022 Nine months ended September 30, Three months ended September 30, 2023 2022 2023 2022 Total net income before income taxes for reportable segments $ 856 $ 237 $ 366 $ 20 Unallocated software impairment (51 ) Unallocated cost of corporate headquarters (814 ) (741 ) (339 ) (230 ) Consolidated net income (loss) before income taxes $ 42 $ (555 ) $ 27 $ (210 ) |
REVENUE
REVENUE | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | NOTE 10— REVENUE The following table disaggregates the Company’s revenue for the nine-month and three-month periods ended September 30, 2023 and 2022 (in thousands): SCHEDULE OF DISAGGREGATES OF REVENUE Hardware Monitoring Total Nine months ended September 30, 2023: PG Segment $ 2,017 $ 2,977 $ 4,994 CP Segment 620 195 815 Total Revenue $ 2,637 $ 3,172 $ 5,809 Hardware Monitoring Total Nine months ended September 30, 2022: PG Segment $ 1,610 $ 2,725 $ 4,335 CP Segment 631 189 820 Total Revenue $ 2,241 $ 2,914 $ 5,155 Hardware Monitoring Total Three months ended September 30, 2023: PG Segment $ 780 $ 1,018 $ 1,798 CP Segment 224 65 289 Total Revenue $ 1,004 $ 1,083 $ 2,087 Hardware Monitoring Total Three months ended September 30, 2022: PG Segment $ 608 $ 902 $ 1,510 CP Segment 217 56 273 Total Revenue $ 825 $ 958 $ 1,783 Deferred revenue activity for the nine months ended September 30, 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 1,597 3,436 5,033 Recognized as revenue (1,821 ) (3,172 ) (4,993 ) Balance at September 30, 2023 $ 3,527 $ 2,684 $ 6,211 Amounts to be recognized as revenue in the twelve-month-period ending: September 30, 2024 $ 2,023 $ 2,247 $ 4,270 September 30, 2025 1,179 433 1,612 September 30, 2026 and thereafter 325 4 329 $ 3,527 $ 2,684 $ 6,211 The amount of hardware revenue recognized during the nine months ended September 30, 2023 that was included in deferred revenue at the beginning of the fiscal year was $ 1,469,000 1,890,000 SCHEDULE OF RECONCILIATION OF HARDWARE REVENUE Reconciliation of Hardware Revenue 2023 2022 2023 2022 Nine months ended September 30, Three months ended September 30, Reconciliation of Hardware Revenue 2023 2022 2023 2022 Amortization of deferred revenue $ 1,821 $ 1,658 $ 629 $ 631 Sales of custom designed units and related accessories 135 — 43 — Hardware sales (new product versions) 150 — 150 — Other accessories, services, shipping and miscellaneous charges 531 583 182 194 Total hardware revenue $ 2,637 $ 2,241 $ 1,004 $ 825 Deferred charges relate only to the sale of equipment. Deferred charges activity for the nine months ended September 30, 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 655 Recognized as COGS (817 ) Balance at September 30, 2023 $ 1,532 Amounts to be recognized as COGS in the twelve-month-period ending: September 30, 2024 $ 890 September 30, 2025 507 September 30, 2026 and thereafter 135 $ 1,532 SCHEDULE OF RECONCILIATION OF COGS EXPENSE Reconciliation of COGS Expense 2023 2022 2023 2022 Nine months ended September 30, Three months ended September 30, Reconciliation of COGS Expense 2023 2022 2023 2022 Amortization of deferred COGS $ 817 $ 793 $ 277 $ 309 COGS of custom designed units and related accessories 34 — 11 — COGS of hardware sales (new product versions) 66 — 66 — Data costs for monitoring 224 250 76 93 Other COGS of accessories, services, shipping and miscellaneous charges 312 393 107 166 Total COGS expense $ 1,453 $ 1,436 $ 537 $ 568 The following table provides a reconciliation of the Company’s sales commissions contract assets for the nine-month period ended September 30, 2023 (in thousands): SCHEDULE OF SALES COMMISSIONS CONTRACT ASSETS Hardware Monitoring Total Balance at December 31, 2022 $ 319 $ 80 $ 399 Additions during the period 148 43 191 Amortization of sales commissions (149 ) (27 ) (176 ) Balance at September 30, 2023 $ 318 96 414 The capitalized sales commissions are included in other current assets ($ 218,000 196,000 196,000 203,000 Amounts to be recognized as sales commission expense in the twelve-month-period ending: SCHEDULE OF SALES COMMISSIONS EXPENSE September 30, 2024 $ 218 September 30, 2025 138 September 30, 2026 and thereafter 58 Total $ 414 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. Commissions earned from the sales of the new hardware products will be recognized when the product is shipped. |
RELATED PARTY BALANCES AND TRAN
RELATED PARTY BALANCES AND TRANSACTIONS | 9 Months Ended |
Sep. 30, 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 $ 391,000 391,000 131,000 130,000 The Company recorded fees to directors of $ 52,000 44,000 18,000 15,000 Intercompany The intercompany balance due to Acorn from OmniMetrix for amounts loaned, accrued interest and expenses paid by Acorn on OmniMetrix’s behalf was $ 2,928,000 3,677,000 749,000 961,000 134,000 57,000 21,000 During the nine months ended September 30, 2022, the intercompany amount due to Acorn from OmniMetrix decreased by $ 447,000 780,000 134,000 57,000 142,000 |
ACCOUNTING POLICIES (Policies)
ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 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 consolidated financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. As applicable to these unaudited condensed consolidated financial statements, the most significant estimates and assumptions relate to uncertainties with respect to revenue recognition and management’s projections related to the going concern analysis |
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 $ 1,749,000 10 11 10 12 |
Inventory | Inventory Inventories are comprised of components (raw materials), work-in-process and finished goods, which are measured at the lower of cost or 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 $ 9,000 1,000 |
Revenue Recognition | Revenue Recognition On September 1, 2023, OmniMetrix launched an updated version of its products that includes new functionality in its TrueGuard, AIRGuard, Patriot and Hero products that allows its customers to have options as it relates to obtaining and utilizing the data that is provided by its hardware devices. This new functionality allows for SIM card options, configuration options regarding IP address endpoints and DNS routes, and access to OmniMetrix’s over-the-air data protocol. This product update allows customers to have the option to purchase OmniMetrix’s monitoring service, monitor the products themselves if they have the ability in-house, or choose another monitoring provider if they so desire. OmniMetrix’s prior hardware product version could not function as a distinct product from its monitoring services. This new version’s functionality results in OmniMetrix’s hardware and monitoring services being capable of being two distinct products and services. OmniMetrix recognizes revenue, COGS and commissions from the sale of the new version of its hardware products sold when the product is shipped rather than over the estimated time that the unit is in service for the customer. Monitoring revenue continues to be deferred and amortized over the period that the monitoring services are rendered. The remaining balance of deferred revenue from the prior version of these products will continue to be amortized each period until it is fully amortized. The modification to the circuit boards and embedded firmware of hardware enclosures in inventory as of August 31, 2023 were made such that only the new version of these products was sold subsequent to this date. |
Basic and Diluted Net Income (Loss) Per Share | Basic and Diluted Net Income (Loss) Per Share Basic net income (loss) per share is computed by dividing the net income (loss) attributable to Acorn Energy, Inc. by the weighted average number of shares outstanding during the period, excluding treasury stock. Diluted net income (loss) per share is computed by dividing the net income (loss) by the weighted average number of shares outstanding plus the dilutive potential of common shares which would result from the exercise of stock options. The dilutive effects of stock options are excluded from the computation of diluted net income (loss) per share if doing so would be antidilutive. For the nine-month period ending September 30, 2023, the weighted average number of options that were excluded from the computation of diluted net loss, as they had an antidilutive effect, was 6,000 8.49 60,000 6.72 2,187 2.08 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 2023 2022 2023 2022 Nine months ended September 30, Three months ended September 30, 2023 2022 2023 2022 Net income (loss) available to common stockholders $ 35 $ (556 ) $ 24 $ (210 ) Weighted average share outstanding: Basic 2,484 2,481 2,485 2,481 Add: Stock options 22 — 47 — Diluted 2,506 2,481 2,532 2,481 Basic and diluted net income (loss) per share $ 0.01 $ (0.22 ) $ 0.01 $ (0.08 ) |
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 nine-month period ended September 30, 2023 that would affect the Company’s condensed consolidated financial statements. 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. |
ACCOUNTING POLICIES (Tables)
ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Sep. 30, 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 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 2023 2022 2023 2022 Nine months ended September 30, Three months ended September 30, 2023 2022 2023 2022 Net income (loss) available to common stockholders $ 35 $ (556 ) $ 24 $ (210 ) Weighted average share outstanding: Basic 2,484 2,481 2,485 2,481 Add: Stock options 22 — 47 — Diluted 2,506 2,481 2,532 2,481 Basic and diluted net income (loss) per share $ 0.01 $ (0.22 ) $ 0.01 $ (0.08 ) |
ALLOWANCE FOR CREDIT LOSSES (Ta
ALLOWANCE FOR CREDIT LOSSES (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, 2023 December 31, 2022 As of September 30, 2023 December 31, 2022 (in thousands) Balance at beginning of period $ 10 $ 6 Provision for credit losses 3 3 Net (charge-offs) credits (6 ) 1 Balance at end of period $ 7 $ 10 |
INVENTORY (Tables)
INVENTORY (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |
SCHEDULE OF INVENTORY | SCHEDULE OF INVENTORY September 30, 2023 December 31, 2022 As of September 30, 2023 December 31, 2022 (in thousands) Raw materials $ 859 $ 684 Finished goods 50 105 Inventory net $ 909 $ 789 |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Sep. 30, 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 Nine Months Ending September 30, 2023 2022 Cash paid for operating lease liabilities $ 96 $ 93 |
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 1.99 |
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 September 30, 2023 (in thousands): SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS Year ended September 30, 2024 $ 129 2025 132 Total undiscounted cash flows 261 Less: Imputed interest (11 ) Present value of operating lease liabilities (a) $ 250 (a) Includes current portion of $ 121,000 |
SCHEDULE OF SUB LEASES | SCHEDULE OF SUB LEASES Year ended September 30, 2024 $ 28 2025 29 Total undiscounted cash flows $ 57 |
EQUITY (Tables)
EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
SCHEDULE OF BLACK-SCHOLES OPTION PRICING ESTIMATE FAIR VALUE | SCHEDULE OF BLACK-SCHOLES OPTION PRICING 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, 2022 58,966 $ 6.71 4.3 $ 16,000 Granted 13,436 5.24 Exercised — — Forfeited or expired (1,280 ) 6.48 Outstanding at September 30, 2023 71,122 $ 6.44 4.2 $ 46,000 Exercisable at September 30, 2023 61,786 $ 6.49 3.9 $ 38,000 |
SCHEDULE OF STOCK OPTIONS FAIR VALUE ASSUMPTIONS ESTIMATED USING BLACK-SCHOLES | The fair value of the options granted of $ 46,000 SCHEDULE OF STOCK OPTIONS FAIR VALUE ASSUMPTIONS ESTIMATED USING BLACK-SCHOLES Risk-free interest rate 3.9 % Expected term of options 4.1 Expected annual volatility 94.5 % Expected dividend yield — % |
SUMMARY OF WARRANT ACTIVITY | The Company previously issued warrants at exercise prices equal to or greater than the 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, 2022 2,187 $ 2.08 2.5 Granted — — Exercised (2,187 ) 2.08 Forfeited or expired — — Outstanding at September 30, 2023 — $ — — |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
SUMMARY OF SEGMENTED DATA | The following tables represent segmented data for the nine-month and three-month periods ended September 30, 2023 and 2022 (in thousands): SUMMARY OF SEGMENTED DATA PG CP Total Nine months ended September 30, 2023: Revenues from external customers $ 4,994 $ 815 $ 5,809 Segment gross profit 3,876 480 4,356 Depreciation and amortization 99 16 115 Segment income (loss) before income taxes $ 891 $ (35 ) $ 856 Nine months ended September 30, 2022: Revenues from external customers $ 4,335 $ 820 $ 5,155 Segment gross profit 3,256 463 3,719 Depreciation and amortization 72 13 85 Segment income (loss) before income taxes* $ 340 $ (103 ) $ 237 Three months ended September 30, 2023: Revenues from external customers $ 1,798 $ 289 $ 2,087 Segment gross profit 1,381 169 1,550 Depreciation and amortization 36 5 41 Segment income before income taxes $ 361 $ 5 $ 366 Three months ended September 30, 2022: Revenues from external customers $ 1,510 $ 273 $ 1,783 Segment gross profit 1,092 123 1,215 Depreciation and amortization 31 5 36 Segment income (loss) before income taxes $ 78 $ (58 ) $ 20 * Software impairment of $ 51,000 is not related to a specific segment and, thus, is not included in the “Total net income before income taxes for reportable segments” for the nine months ended September 30, 2022 |
SCHEDULE OF RECONCILIATION OF SEGMENT DATA TO CONSOLIDATED STATEMENT OF OPERATIONS | Reconciliation of Segment Income (Loss) to Consolidated Net Income (Loss) Before Income Taxes SCHEDULE OF RECONCILIATION OF SEGMENT DATA TO CONSOLIDATED STATEMENT OF OPERATIONS 2023 2022 2023 2022 Nine months ended September 30, Three months ended September 30, 2023 2022 2023 2022 Total net income before income taxes for reportable segments $ 856 $ 237 $ 366 $ 20 Unallocated software impairment (51 ) Unallocated cost of corporate headquarters (814 ) (741 ) (339 ) (230 ) Consolidated net income (loss) before income taxes $ 42 $ (555 ) $ 27 $ (210 ) |
REVENUE (Tables)
REVENUE (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
SCHEDULE OF DISAGGREGATES OF REVENUE | The following table disaggregates the Company’s revenue for the nine-month and three-month periods ended September 30, 2023 and 2022 (in thousands): SCHEDULE OF DISAGGREGATES OF REVENUE Hardware Monitoring Total Nine months ended September 30, 2023: PG Segment $ 2,017 $ 2,977 $ 4,994 CP Segment 620 195 815 Total Revenue $ 2,637 $ 3,172 $ 5,809 Hardware Monitoring Total Nine months ended September 30, 2022: PG Segment $ 1,610 $ 2,725 $ 4,335 CP Segment 631 189 820 Total Revenue $ 2,241 $ 2,914 $ 5,155 Hardware Monitoring Total Three months ended September 30, 2023: PG Segment $ 780 $ 1,018 $ 1,798 CP Segment 224 65 289 Total Revenue $ 1,004 $ 1,083 $ 2,087 Hardware Monitoring Total Three months ended September 30, 2022: PG Segment $ 608 $ 902 $ 1,510 CP Segment 217 56 273 Total Revenue $ 825 $ 958 $ 1,783 |
SCHEDULE OF DEFERRED REVENUE ACTIVITY | Deferred revenue activity for the nine months ended September 30, 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 1,597 3,436 5,033 Recognized as revenue (1,821 ) (3,172 ) (4,993 ) Balance at September 30, 2023 $ 3,527 $ 2,684 $ 6,211 Amounts to be recognized as revenue in the twelve-month-period ending: September 30, 2024 $ 2,023 $ 2,247 $ 4,270 September 30, 2025 1,179 433 1,612 September 30, 2026 and thereafter 325 4 329 $ 3,527 $ 2,684 $ 6,211 |
SCHEDULE OF RECONCILIATION OF HARDWARE REVENUE | SCHEDULE OF RECONCILIATION OF HARDWARE REVENUE Reconciliation of Hardware Revenue 2023 2022 2023 2022 Nine months ended September 30, Three months ended September 30, Reconciliation of Hardware Revenue 2023 2022 2023 2022 Amortization of deferred revenue $ 1,821 $ 1,658 $ 629 $ 631 Sales of custom designed units and related accessories 135 — 43 — Hardware sales (new product versions) 150 — 150 — Other accessories, services, shipping and miscellaneous charges 531 583 182 194 Total hardware revenue $ 2,637 $ 2,241 $ 1,004 $ 825 |
SCHEDULE OF DEFERRED CHARGES ACTIVITY | Deferred charges relate only to the sale of equipment. Deferred charges activity for the nine months ended September 30, 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 655 Recognized as COGS (817 ) Balance at September 30, 2023 $ 1,532 Amounts to be recognized as COGS in the twelve-month-period ending: September 30, 2024 $ 890 September 30, 2025 507 September 30, 2026 and thereafter 135 $ 1,532 |
SCHEDULE OF RECONCILIATION OF COGS EXPENSE | SCHEDULE OF RECONCILIATION OF COGS EXPENSE Reconciliation of COGS Expense 2023 2022 2023 2022 Nine months ended September 30, Three months ended September 30, Reconciliation of COGS Expense 2023 2022 2023 2022 Amortization of deferred COGS $ 817 $ 793 $ 277 $ 309 COGS of custom designed units and related accessories 34 — 11 — COGS of hardware sales (new product versions) 66 — 66 — Data costs for monitoring 224 250 76 93 Other COGS of accessories, services, shipping and miscellaneous charges 312 393 107 166 Total COGS expense $ 1,453 $ 1,436 $ 537 $ 568 |
SCHEDULE OF SALES COMMISSIONS CONTRACT ASSETS | The following table provides a reconciliation of the Company’s sales commissions contract assets for the nine-month period ended September 30, 2023 (in thousands): SCHEDULE OF SALES COMMISSIONS CONTRACT ASSETS Hardware Monitoring Total Balance at December 31, 2022 $ 319 $ 80 $ 399 Additions during the period 148 43 191 Amortization of sales commissions (149 ) (27 ) (176 ) Balance at September 30, 2023 $ 318 96 414 |
SCHEDULE OF SALES COMMISSIONS EXPENSE | Amounts to be recognized as sales commission expense in the twelve-month-period ending: SCHEDULE OF SALES COMMISSIONS EXPENSE September 30, 2024 $ 218 September 30, 2025 138 September 30, 2026 and thereafter 58 Total $ 414 |
BASIS OF PRESENTATION (Details
BASIS OF PRESENTATION (Details Narrative) | Sep. 05, 2023 USD ($) |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Reverse stock split | 1-for-16 reverse stock split |
Shares repurchased | $ 347 |
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 | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | ||
Accounting Policies [Abstract] | |||||
Net income (loss) available to common stockholders | $ 24 | $ (210) | $ 35 | $ (556) | |
Weighted average share outstanding: | |||||
Basic | [1] | 2,485 | 2,481 | 2,484 | 2,481 |
Add: Stock options | 47 | 0 | 22 | 0 | |
Diluted | [1] | 2,532 | 2,481 | 2,506 | 2,481 |
Basic net income (loss) per share | [1] | $ 0.01 | $ (0.08) | $ 0.01 | $ (0.22) |
Diluted net income (loss) per share | [1] | $ 0.01 | $ (0.08) | $ 0.01 | $ (0.22) |
[1]Includes effects of a 1-for-16 reverse stock split. |
ACCOUNTING POLICIES (Details Na
ACCOUNTING POLICIES (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Product Information [Line Items] | |||||
Deposits assets | $ 1,749,000 | $ 1,749,000 | |||
Inventory write-off | $ 1,000 | $ 9,000 | |||
Stock Options [Member] | |||||
Product Information [Line Items] | |||||
Antidilutive securities excluded from computation of earnings per share, amount | 2,187 | 6,000 | 60,000 | ||
Weighted average exercise price | 2.08 | 8.49 | 6.72 | ||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | One Customer [Member] | |||||
Product Information [Line Items] | |||||
Concentration risk percentage | 10% | 11% | |||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | One Customer [Member] | |||||
Product Information [Line Items] | |||||
Concentration risk percentage | 12% | ||||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Two Customer [Member] | |||||
Product Information [Line Items] | |||||
Concentration risk percentage | 10% |
LIQUIDITY (Details Narrative)
LIQUIDITY (Details Narrative) - USD ($) | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Nov. 07, 2023 | Dec. 31, 2022 | |
Subsequent Event [Line Items] | ||||
Cash | $ 1,749,000 | |||
Working capital | 513,000 | |||
Deferred revenue | 4,270,000 | $ 3,984,000 | ||
Net increase (decrease) in cash | 299,000 | $ (598,000) | ||
Operating activities | 366,000 | (311,000) | ||
Investing activities | 72,000 | 292,000 | ||
Financing activities | $ 5,000 | $ 5,000 | ||
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Cash | $ 1,684,000 |
SCHEDULE OF ALLOWANCES FOR CRED
SCHEDULE OF ALLOWANCES FOR CREDIT LOSSES (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Receivables [Abstract] | ||
Balance at beginning of period | $ 10 | $ 6 |
Provision for credit losses | 3 | 3 |
Net (charge-offs) credits | (6) | 1 |
Balance at end of period | $ 7 | $ 10 |
ALLOWANCE FOR CREDIT LOSSES (De
ALLOWANCE FOR CREDIT LOSSES (Details Narrative) | Sep. 30, 2023 USD ($) |
Receivables [Abstract] | |
Gross receivables | $ 590,000 |
Allowances for credit losses | $ 7,000 |
SCHEDULE OF INVENTORY (Details)
SCHEDULE OF INVENTORY (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 859 | $ 684 |
Finished goods | 50 | 105 |
Inventory net | $ 909 | $ 789 |
INVENTORY (Details Narrative)
INVENTORY (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |||
Inventory valuation reserves | $ 9,000 | $ 9,000 | $ 4,000 |
Inventory write off | $ 1,000 | $ 9,000 |
SCHEDULE OF SUPPLEMENTAL CASH F
SCHEDULE OF SUPPLEMENTAL CASH FLOW INFORMATION RELATED TO LEASES (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Leases | ||
Cash paid for operating lease liabilities | $ 96 | $ 93 |
SCHEDULE OF SUPPLEMENTAL BALANC
SCHEDULE OF SUPPLEMENTAL BALANCE SHEET INFORMATION RELATED TO LEASES (Details) | Sep. 30, 2023 |
Leases | |
Weighted average remaining lease terms for operating leases | 1 year 11 months 26 days |
SCHEDULE OF FUTURE MINIMUM LEAS
SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS (Details) $ in Thousands | Sep. 30, 2023 USD ($) | |
Leases | ||
2024 | $ 129 | |
2025 | 132 | |
Total undiscounted cash flows | 261 | |
Less: Imputed interest | (11) | |
Present value of operating lease liabilities | $ 250 | [1] |
[1]Includes current portion of $ 121,000 |
SCHEDULE OF FUTURE MINIMUM LE_2
SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS (Details) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Leases | ||
Operating leases current portion | $ 121 | $ 116 |
SCHEDULE OF SUB LEASES (Details
SCHEDULE OF SUB LEASES (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Leases | |
2024 | $ 28 |
2025 | 29 |
Total undiscounted cash flows | $ 57 |
LEASES (Details Narrative)
LEASES (Details Narrative) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Jul. 06, 2021 USD ($) ft² | Apr. 30, 2019 | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||
Operating lease discount rate | 4.50% | 4.50% | |||||
Operating lease payments | [1] | $ 250,000 | $ 250,000 | ||||
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 | $ 33,000 | $ 31,000 | $ 96,000 | $ 93,000 | |||
[1]Includes current portion of $ 121,000 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) | 9 Months Ended | |
Sep. 30, 2023 USD ($) | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Operating lease obligations payable | $ 250,000 | [1] |
Master Services Agreement [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Operating lease obligations payable | 250,000 | |
Operating leases and contractual services | 15,000 | |
Commitment payable | $ 603,000 | |
[1]Includes current portion of $ 121,000 |
SCHEDULE OF BLACK-SCHOLES OPTIO
SCHEDULE OF BLACK-SCHOLES OPTION PRICING ESTIMATE FAIR VALUE (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Equity [Abstract] | ||
Number of Options (in shares), Outstanding at beginning of year | 58,966 | |
Weighted Average Exercise Price Per Share, Outstanding at beginning of year | $ 6.71 | |
Weighted average remaining contractual life at end | 4 years 2 months 12 days | 4 years 3 months 18 days |
Aggregate intrinsic value at beginning of year | $ 16,000 | |
Number of Options (in shares), Granted | 13,436 | |
Weighted Average Exercise Price Per Share, Granted | $ 5.24 | |
Number of Options (in shares), Exercised | ||
Weighted Average Exercise Price Per Share, Exercised | ||
Number of Options (in shares), Forfeited or expired | (1,280) | |
Weighted Average Exercise Price Per Share, Forfeited or expired | $ 6.48 | |
Number of Options (in shares), Outstanding at end of year | 71,122 | 58,966 |
Weighted Average Exercise Price Per Share, Outstanding at end of year | $ 6.44 | $ 6.71 |
Aggregate intrinsic value at end of year | $ 46,000 | $ 16,000 |
Number of Options (in shares), Exercisable at end of year | 61,786 | |
Weighted Average Exercise Price Per Share, Exercisable at end of year | $ 6.49 | |
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 | $ 38,000 |
SCHEDULE OF STOCK OPTIONS FAIR
SCHEDULE OF STOCK OPTIONS FAIR VALUE ASSUMPTIONS ESTIMATED USING BLACK-SCHOLES (Details) | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Equity [Abstract] | |
Fair value of options granted | $ 46,000 |
Risk-free interest rate | 3.90% |
Expected term of options, in years | 4 years 1 month 6 days |
Expected annual volatility | 94.50% |
Expected dividend yield |
SUMMARY OF WARRANT ACTIVITY (De
SUMMARY OF WARRANT ACTIVITY (Details) - Warrant [Member] - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Number of Warrants (in Shares), Outstanding at beginning balance | 2,187 | |
Weighted Average Exercise Price Per Share, Outstanding at beginning balance | $ 2.08 | |
Weighted average remaining contractual life at begining | 2 months 15 days | |
Number of Warrants (in Shares), Granted | ||
Weighted Average Exercise Price Per Share, Granted | ||
Number of Warrants (in Shares), Exercised | (2,187) | |
Weighted Average Exercise Price Per Share, Exercised | $ 2.08 | |
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 | 2,187 | |
Weighted Average Exercise Price Per Share, Outstanding at end balance | $ 2.08 |
EQUITY (Details Narrative)
EQUITY (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 05, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Stockholders' equity, reverse stock split | 1-for-16 reverse stock split | |||||
Common stock, shares issued | 2,484,791 | 2,484,791 | 2,482,604 | |||
Common stock, shares outstanding | 2,484,791 | 2,484,791 | 2,482,604 | |||
Common stock, par value | $ 0.01 | $ 0.01 | $ 0.01 | |||
Number of options granted during period | 13,436 | |||||
Intrinsic value of options outstanding | $ 46,000 | $ 46,000 | $ 16,000 | |||
Intrinsic value of options exercisable | 38,000 | 38,000 | ||||
Compensation cost, non-vested awards not yet recognized | 17,000 | $ 43,000 | 17,000 | $ 43,000 | ||
Selling, General and Administrative Expenses [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Stock based compensation expense | 16,000 | $ 16,000 | 46,000 | $ 69,000 | ||
Options Held [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Intrinsic value of options outstanding | 38,000 | 38,000 | ||||
Intrinsic value of options exercisable | $ 38,000 | $ 38,000 | ||||
Share-Based Payment Arrangement, Employee [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Number of options granted during period | 1,562 | |||||
Share-Based Payment Arrangement, Nonemployee [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Number of options granted during period | 0 | 0 | ||||
Non-Employee Directors [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Number of options granted during period | 0 | 13,436 | ||||
Director [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Number of options granted during period | 3,437 | |||||
Chief Executive Officer [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Number of options granted during period | 2,187 | |||||
Chief Financial Officer [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Number of options granted during period | 6,250 | |||||
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 | 77,540 | 77,540 |
SUMMARY OF SEGMENTED DATA (Deta
SUMMARY OF SEGMENTED DATA (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | ||
Segment Reporting Information [Line Items] | |||||
Revenue from external customers | $ 2,087 | $ 1,783 | $ 5,809 | $ 5,155 | |
Segment gross profit | 1,550 | 1,215 | 4,356 | 3,719 | |
Depreciation and amortization | 41 | 36 | 115 | 85 | |
Segment income (loss) before income taxes | 366 | 20 | 856 | 237 | [1] |
PG [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue from external customers | 1,798 | 1,510 | 4,994 | 4,335 | |
Segment gross profit | 1,381 | 1,092 | 3,876 | 3,256 | |
Depreciation and amortization | 36 | 31 | 99 | 72 | |
Segment income (loss) before income taxes | 361 | 78 | 891 | 340 | [1] |
CP [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue from external customers | 289 | 273 | 815 | 820 | |
Segment gross profit | 169 | 123 | 480 | 463 | |
Depreciation and amortization | 5 | 5 | 16 | 13 | |
Segment income (loss) before income taxes | $ 5 | $ (58) | $ (35) | $ (103) | [1] |
[1]Software impairment of $ 51,000 |
SUMMARY OF SEGMENTED DATA (De_2
SUMMARY OF SEGMENTED DATA (Details) (Parenthetical) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Property, Plant and Equipment [Line Items] | ||
Asset Impairment Charges | $ 9 | $ 31 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Asset Impairment Charges | $ 51,000 |
SCHEDULE OF RECONCILIATION OF S
SCHEDULE OF RECONCILIATION OF SEGMENT DATA TO CONSOLIDATED STATEMENT OF OPERATIONS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Segment Reporting [Abstract] | ||||
Total net income before income taxes for reportable segments | $ 366 | $ 20 | $ 856 | $ 237 |
Unallocated software impairment | (51) | |||
Unallocated cost of corporate headquarters | (339) | (230) | (814) | (741) |
Consolidated net income (loss) before income taxes | $ 27 | $ (210) | $ 42 | $ (555) |
SCHEDULE OF DISAGGREGATES OF RE
SCHEDULE OF DISAGGREGATES OF REVENUE (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | $ 2,087 | $ 1,783 | $ 5,809 | $ 5,155 |
PG [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 1,798 | 1,510 | 4,994 | 4,335 |
CP [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 289 | 273 | 815 | 820 |
Hardware [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 1,004 | 825 | 2,637 | 2,241 |
Hardware [Member] | PG [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 780 | 608 | 2,017 | 1,610 |
Hardware [Member] | CP [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 224 | 217 | 620 | 631 |
Monitoring [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 1,083 | 958 | 3,172 | 2,914 |
Monitoring [Member] | PG [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 1,018 | 902 | 2,977 | 2,725 |
Monitoring [Member] | CP [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | $ 65 | $ 56 | $ 195 | $ 189 |
SCHEDULE OF DEFERRED REVENUE AC
SCHEDULE OF DEFERRED REVENUE ACTIVITY (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Disaggregation of Revenue [Line Items] | |
Balance at December 31, 2022 | $ 6,171 |
Additions during the period | 5,033 |
Recognized as revenue | (4,993) |
Balance at September 30, 2023 | 6,211 |
September 30, 2024 | 4,270 |
September 30, 2025 | 1,612 |
September 30, 2026 and thereafter | 329 |
Total | 6,211 |
Hardware [Member] | |
Disaggregation of Revenue [Line Items] | |
Balance at December 31, 2022 | 3,751 |
Additions during the period | 1,597 |
Recognized as revenue | (1,821) |
Balance at September 30, 2023 | 3,527 |
September 30, 2024 | 2,023 |
September 30, 2025 | 1,179 |
September 30, 2026 and thereafter | 325 |
Total | 3,527 |
Monitoring [Member] | |
Disaggregation of Revenue [Line Items] | |
Balance at December 31, 2022 | 2,420 |
Additions during the period | 3,436 |
Recognized as revenue | (3,172) |
Balance at September 30, 2023 | 2,684 |
September 30, 2024 | 2,247 |
September 30, 2025 | 433 |
September 30, 2026 and thereafter | 4 |
Total | $ 2,684 |
SCHEDULE OF RECONCILIATION OF H
SCHEDULE OF RECONCILIATION OF HARDWARE REVENUE (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 2,087 | $ 1,783 | $ 5,809 | $ 5,155 |
Hardware [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,004 | 825 | 2,637 | 2,241 |
Hardware [Member] | Amortization [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 629 | 631 | 1,821 | 1,658 |
Hardware [Member] | Sales of Custom Designed Units [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 43 | 135 | ||
Hardware [Member] | Hardware Sales [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 150 | 150 | ||
Hardware [Member] | Other Accessories [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 182 | $ 194 | $ 531 | $ 583 |
SCHEDULE OF DEFERRED CHARGES AC
SCHEDULE OF DEFERRED CHARGES ACTIVITY (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Balance at December 31, 2022 | $ 1,694 |
Additions, net of adjustments, during the period | 655 |
Recognized as COGS | (817) |
Balance at September 30, 2023 | 1,532 |
September 30, 2024 | 890 |
September 30, 2025 | 507 |
September 30, 2026 and thereafter | 135 |
Total | $ 1,532 |
SCHEDULE OF RECONCILIATION OF C
SCHEDULE OF RECONCILIATION OF COGS EXPENSE (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 2,087 | $ 1,783 | $ 5,809 | $ 5,155 |
COGS [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 537 | 568 | 1,453 | 1,436 |
COGS [Member] | Amortization [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 277 | 309 | 817 | 793 |
COGS [Member] | COGS of Custom Designed Units [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 11 | 34 | ||
COGS [Member] | COGS of Hardware Sales [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 66 | 66 | ||
COGS [Member] | COGS Data Costs [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 76 | 93 | 224 | 250 |
COGS [Member] | Other COGS Accessories [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 107 | $ 166 | $ 312 | $ 393 |
SCHEDULE OF SALES COMMISSIONS C
SCHEDULE OF SALES COMMISSIONS CONTRACT ASSETS (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Disaggregation of Revenue [Line Items] | |
Balance at December 31, 2022 | $ 399 |
Additions during the period | 191 |
Amortization of sales commissions | (176) |
Balance at September 30, 2023 | 414 |
Hardware [Member] | |
Disaggregation of Revenue [Line Items] | |
Balance at December 31, 2022 | 319 |
Additions during the period | 148 |
Amortization of sales commissions | (149) |
Balance at September 30, 2023 | 318 |
Monitoring [Member] | |
Disaggregation of Revenue [Line Items] | |
Balance at December 31, 2022 | 80 |
Additions during the period | 43 |
Amortization of sales commissions | (27) |
Balance at September 30, 2023 | $ 96 |
SCHEDULE OF SALES COMMISSIONS E
SCHEDULE OF SALES COMMISSIONS EXPENSE (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Revenue from Contract with Customer [Abstract] | |
September 30, 2024 | $ 218 |
September 30, 2025 | 138 |
September 30, 2026 and thereafter | 58 |
Total | $ 414 |
REVENUE (Details Narrative)
REVENUE (Details Narrative) - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Other current assets | $ 343,000 | $ 288,000 |
Capitalized Sales Commissions [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Other current assets | 218,000 | 196,000 |
Other assets | 196,000 | $ 203,000 |
Hardware [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Deferred revenue recognized | 1,469,000 | |
Monitoring [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Deferred revenue recognized | $ 1,890,000 |
RELATED PARTY BALANCES AND TR_2
RELATED PARTY BALANCES AND TRANSACTIONS (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Officer [Member] | |||||
Related Party Transaction [Line Items] | |||||
Officer and Director fees | $ 131,000 | $ 130,000 | $ 391,000 | $ 391,000 | |
Director [Member] | |||||
Related Party Transaction [Line Items] | |||||
Officer and Director fees | 18,000 | $ 15,000 | 52,000 | 44,000 | |
Related Party [Member] | |||||
Related Party Transaction [Line Items] | |||||
Accrued interest and expenses | $ 2,928,000 | 2,928,000 | $ 3,677,000 | ||
Related party expenses paid | 21,000 | 142,000 | |||
OmniMetrix, LLC [Member] | |||||
Related Party Transaction [Line Items] | |||||
Decrease in related parties | 749,000 | 447,000 | |||
Debt repayment | 961,000 | 780,000 | |||
Interest | 134,000 | 134,000 | |||
Dividends | $ 57,000 | $ 57,000 |