Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Nov. 11, 2016 | |
Document Information [Line Items] | ||
Entity Registrant Name | DIGITAL POWER CORP | |
Entity Central Index Key | 896,493 | |
Trading Symbol | dpw | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 6,775,971 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 1,292,000 | $ 1,241,000 |
Trade receivables | 1,110,000 | 1,240,000 |
Related parties – trade receivables | 77,000 | |
Prepaid expenses and other accounts receivable | 239,000 | 187,000 |
Inventories (Note 3) | 1,186,000 | 1,542,000 |
Total current assets | 3,827,000 | 4,287,000 |
PROPERTY AND EQUIPMENT, NET | 615,000 | 709,000 |
INVESTMENT IN TELKOOR | 90,000 | |
LONG-TERM DEPOSITS | 13,000 | 13,000 |
Total Non- current assets | 628,000 | 812,000 |
Total assets | 4,455,000 | 5,099,000 |
CURRENT LIABILITIES: | ||
Accounts payable | 757,000 | 937,000 |
Advances from customers and deferred revenue | 94,000 | 211,000 |
Other current liabilities | 434,000 | 480,000 |
Total current liabilities | 1,285,000 | 1,628,000 |
SHAREHOLDERS' EQUITY: | ||
Series A Redeemable Convertible Preferred shares, no par value - 500,000 shares authorized; 0 shares issued and outstanding at September 30, 2016 and December 31, 2015 | 0 | 0 |
Preferred shares, no par value - 1,500,000 shares authorized; 0 shares issued and outstanding at September 30, 2016 and December 31, 2015 | 0 | 0 |
Common shares, no par value - 30,000,000 shares authorized; 6,775,971 shares issued and outstanding as of September 30, 2016 and December 31, 2015 | 0 | 0 |
Additional paid-in capital | 15,094,000 | 14,965,000 |
Accumulated deficit | (11,201,000) | (11,036,000) |
Accumulated other comprehensive loss | (723,000) | (458,000) |
Total shareholders' equity | 3,170,000 | 3,471,000 |
Total liabilities and shareholders' equity | $ 4,455,000 | $ 5,099,000 |
Consolidated Balance Sheets (C3
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares | Sep. 30, 2016 | Dec. 31, 2015 |
Series A Redeemable Convertible Preferred shares, par value (in dollars per share) | $ 0 | $ 0 |
Series A Redeemable Convertible Preferred shares, shares authorized (in shares) | 500,000 | 500,000 |
Series A Redeemable Convertible Preferred shares, shares issued (in shares) | 0 | 0 |
Series A Redeemable Convertible Preferred shares, shares outstanding (in shares) | 0 | 0 |
Preferred shares, par value (in dollars per share) | $ 0 | $ 0 |
Preferred shares, shares authorized (in shares) | 1,500,000 | 1,500,000 |
Preferred shares, shares issued (in shares) | 0 | 0 |
Preferred shares, shares outstanding (in shares) | 0 | 0 |
Common shares, par value (in dollars per share) | $ 0 | $ 0 |
Common shares, shares authorized (in shares) | 30,000,000 | 30,000,000 |
Common shares, shares issued (in shares) | 6,775,971 | 6,775,971 |
Common shares, shares outstanding (in shares) | 6,775,971 | 6,775,971 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenues | $ 1,826 | $ 1,415 | $ 5,603 | $ 5,462 |
Cost of revenues | 1,123 | 935 | 3,526 | 3,468 |
Gross profit | 703 | 480 | 2,077 | 1,994 |
Operating expenses: | ||||
Engineering and product development | 147 | 203 | 511 | 663 |
Selling and marketing | 235 | 316 | 723 | 835 |
General and administrative | 404 | 378 | 1,115 | 1,279 |
Total operating expenses | 786 | 897 | 2,349 | 2,777 |
Operating income (loss) | (83) | (417) | (272) | (783) |
Financial income (expense), net | 23 | 21 | 85 | 18 |
Impairment of investment | (106) | |||
Income (Loss) before income taxes | (60) | (396) | (187) | (871) |
Income taxes | 22 | 22 | ||
Net (loss) income | $ (38) | $ (396) | $ (165) | $ (871) |
Basic net income (loss) per share (in dollars per share) | $ (0.01) | $ (0.059) | $ (0.02) | $ (0.129) |
Diluted net income (loss) per share (in dollars per share) | $ (0.01) | $ (0.059) | $ (0.02) | $ (0.129) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Comprehensive loss: Net loss | $ (38) | $ (396) | $ (165) | $ (871) |
Other Comprehensive income, net of tax: | ||||
Change in net foreign currency translation adjustment | (55) | (82) | (265) | (55) |
Other comprehensive income | (55) | (82) | (265) | (55) |
Total comprehensive income (loss): | $ (93) | $ (478) | $ (430) | $ (926) |
Statement of Changes in Shareho
Statement of Changes in Shareholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Balance (in shares) at Dec. 31, 2014 | 6,775,971 | ||||
Balance at Dec. 31, 2014 | $ 14,739 | $ (9,940) | $ (358) | $ 4,441 | |
Stock compensation related to options granted to employees | 181 | 181 | |||
Comprehensive loss: Net loss | (871) | (871) | |||
Foreign currency translation adjustments | (55) | (55) | |||
Balance (in shares) at Sep. 30, 2015 | 6,775,971 | ||||
Balance at Sep. 30, 2015 | 14,920 | (10,811) | (413) | 3,696 | |
Net loss | (871) | (871) | |||
Balance (in shares) at Dec. 31, 2015 | 6,775,971 | ||||
Balance at Dec. 31, 2015 | 14,965 | (11,036) | (458) | 3,471 | |
Stock compensation related to options granted to employees | 129 | 129 | |||
Comprehensive loss: Net loss | (165) | (165) | |||
Foreign currency translation adjustments | (265) | (265) | |||
Balance (in shares) at Sep. 30, 2016 | 6,775,971 | ||||
Balance at Sep. 30, 2016 | 15,094 | (11,201) | (723) | 3,170 | |
Net loss | $ (165) | $ (165) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows from operating activities: | ||
Net loss | $ (165) | $ (871) |
Adjustments required to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 123 | 108 |
Amortization of intangible asset | 66 | |
Stock compensation related to options granted to employees | 129 | 181 |
Impairment of investment in Telkoor | 106 | |
Write down of inventory | 44 | |
Decrease ( Increase) in trade receivables, net | 82 | 560 |
Decrease (Increase) in prepaid expenses and other accounts receivable | (60) | (53) |
Decrease (increase) in inventories | 243 | (339) |
Decrease in accounts payable and related parties- trade payables | (101) | (236) |
Increase (decrease) in deferred revenues and other current liabilities | (113) | (161) |
Net cash provided by operating activities | 138 | (595) |
Cash flows from investing activities: | ||
Purchase of property and equipment | (78) | (130) |
Sale of investment | 90 | |
Net cash from( used) n investing activities | 12 | (130) |
Cash flows from financing activities: | ||
Effect of exchange rate changes on cash and cash equivalents | (99) | (20) |
Increase (Decrease) in cash and cash equivalents | 51 | (745) |
Cash and cash equivalents at the beginning of the period | 1,241 | 2,110 |
Cash and cash equivalents at the end of the period | $ 1,292 | $ 1,365 |
Note 1 - General
Note 1 - General | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Business Description and Basis of Presentation [Text Block] | NOTE 1:- GENERAL a. Digital Power Corporation (the “Company” or “DPC”) was incorporated in 1969, under the General Corporation Law of the State of California. The Company and Digital Power Limited (“DPL”), a wholly owned subsidiary located in the United Kingdom, are currently engaged in the design, manufacture and sale of switching power supplies and converters. The Company has two reportable geographic segments - North America (sales through DPC) and Europe (sales through DPL). b. In January 2016, Telkoor Telecom Ltd. (“Telkoor”) sold its entire commercial assets to Advice Ltd. (“Advice”). Consequently, the Company depends on Advice for design, to retain product technology up-to-date and manufacturing capabilities for certain of the products that the Company sells. If Advice is unable or unwilling to continue designing or manufacturing the Company's products in required volumes and with a certain level of quality on a timely basis, that could lead to loss of sales and adversely affect the Company's operating results and cash position. The Company also depends on Advice's intellectual property and ability to transfer production to third party manufacturers. Failure to obtain new products in a timely manner or delay in delivery of products to customers will have an adverse effect on the Company's ability to meet its customers’ expectations. In addition, the Company operates in highly competitive markets where the ability to sell Advice’s products could be adversely affected by Advice's agreements with other companies, long lead-times and the high cost of Advice’s products. In 2010, the Company purchased specific IP from Telkoor in order to reduce its dependency on Telkoor with respect to a certain line of products. c. On September 5, 2016, the Company entered into a Securities Purchase Agreement (the “Agreement”) with Philou Ventures, LLC, a Wyoming limited liability company (the “Purchaser”), and Telkoor Telecom Ltd., an Israeli company (the “Seller”) pursuant to which the Purchaser purchased all of the Seller’s 2,714,610 shares of the common stock in the Company, constituting approximately 40.06% of the Company’s outstanding shares of common stock. In consideration for such shares, the Purchaser paid Seller $1.5 million. Pursuant to the Agreement, the Company entered into a Rescission Agreement with the Seller in order to resolve all financial issues between the parties, including the repurchase by the Seller of 1,136,666 shares of common stock in Seller beneficially owned by the Company for their book value. The closing of the transactions under the Agreement and the Rescission Agreement occurred on September 22, 2016. |
Note 2 - Significant Accounting
Note 2 - Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES The accompanying unaudited consolidated financial statements as of September 30, 2016 and for the three and nine months ended September 30, 2016 and 2015 are unaudited and reflect all adjustments (consisting only of normal recurring adjustments) which are, in the opinion of management, necessary for a fair presentation of the financial position and operating results for the interim periods. The condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto, together with management's discussion and analysis of the financial condition and results of operations, contained in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2015. The results of operations for the three and nine months ended September 30, 2016 are not necessarily indicative of the results for the entire fiscal year ending December 31, 2016. The significant accounting policies applied in the annual financial statements of the Company as of December 31, 2015 are applied consistently in these financial statements. |
Note 3 - Inventories
Note 3 - Inventories | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | NOTE 3:- INVENTORIES September 30, December 31, 2016 2015 Unaudited Raw materials, parts and supplies $ 219 $ 336 Work in progress 213 191 Finished products 754 1,015 $ 1,186 $ 1,542 |
Note 4 - Accounting for Stock-b
Note 4 - Accounting for Stock-based Compensation | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | NOTE 4:- ACCOUNTING FOR STOCK-BASED COMPENSATION Share Option Plan 1. Under the Company's Digital Power 2012 (as amended) (“Incentive Share Option Plan”), options may be granted to employees, officers, consultants, service providers and directors of the Company or its subsidiary. 2. As of September 30, 2016, the Company had authorized according to the Incentive Share Option Plan, the grant of options to officers, management, other key employees and others of up to 1,372,630 options for the Company’s common shares. The maximum term of the options is ten years from date of grant. As of September 30, 2016, an aggregate of 812,630 shares of the Company’s common stock were still available for future grant. 3. The options granted generally become fully exercisable after four years and expire no later than 10 years from the date of the option grant. Any options that are forfeited or cancelled before expiration become available for future grants. 4. A summary of the Company’s employee share option activity (except options to consultants and service providers) and related information is as follows: Nine months ended September 30, 2016 Amount of options Weighted average exercise price Weighted average remaining contractual term (years) Aggregate intrinsic value (*) Outstanding at the beginning of the period 1,146,000 $ 1.52 6.74 $ - Expire 40,000 $ 1.16 Forfeited 105,000 $ 1.38 Outstanding at the end of the period 1,001,000 $ 1.55 6.05 $ 7 Exercisable options at the end of the period 756,000 $ 1.56 5.50 $ 3 (*) Calculation of aggregate intrinsic value is based upon the share price of the Company’s common stock as of September 30, 2016 $0.77 per share. Under the provisions of ASC 718, the fair value of each option is estimated on the date of grant using a Black-Sholes option valuation model that uses the assumptions such as stock price on the date of the grant, exercise price, risk-free interest rate, expected volatility, expected life and expected dividend yield of the option. Expected volatility is based exclusively on historical volatility of the entity's stock as allowed by ASC 718. The Company uses historical information with respect to the employee options exercised to estimate the expected term of options granted, representing the period of time that options granted are expected to be outstanding. The risk-free interest rate of the period within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. No options were granted during the first nine months of 2016. The total employee’s equity-based compensation expense related to all of the Company’s equity-based awards recognized for the three and nine months ended September 30, 2016 and 2015 is comprised as follows: Nine months ended Three months ended September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015 Unaudited Unaudited Unaudited Unaudited Cost of goods sold 5 4 1 1 Sales and marketing expenses 3 8 1 2 Research and development 13 14 5 3 General and administrative 108 155 35 38 Total employees equity-based compensation expense 129 181 42 44 As of September 30, 2016, there was $274 of total unrecognized compensation cost related to unvested share-based compensation arrangements granted under the share option plans. That cost is expected to be recognized over a period of the next 1.66 years. |
Note 5 - Income (Loss) Per Shar
Note 5 - Income (Loss) Per Share | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | NOTE 5:- INCOME (LOSS) PER SHARE The following table sets forth the computation of the basic and diluted net income (loss) per share: Nine months ended September 30, Three months ended September 30, 2016 2015 2016 2015 Unaudited Denominator for basic net income per share of weighted average number of common shares 6,775,971 6,775,971 6,775,971 6,775,971 Effect of dilutive securities: Employee stock options -- - -- - Denominator for diluted net income per common share 6,775,971 6,775,971 6,775,971 6,775,971 Basic net income (loss) per share $ (0.02 ) $ (0.129 ) $ (0.01 ) $ (0.059 ) Diluted net income (loss) per share $ (0.02 ) $ (0.129 ) $ (0.01 ) $ (0.059 ) |
Note 6 - Investment in Telkoor
Note 6 - Investment in Telkoor | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | NOTE 6:- INVESTMENT IN TELKOOR On June 16, 2011 the Company acquired 1,136,666 shares of Telkoor, the Company's major shareholder at the time, and an Israeli company listed in the Tel Aviv stock exchange (at such time), which represented 8.8% of the outstanding shares of Telkoor. As a result of this transaction, an existing manufacturing agreement between the Company and Telkoor was updated and extended. The Company recorded an impairment of its investment in Telkoor of $0 for the nine months ended September 30, 2016 compared to $106,000 for the nine months ended September 30, 2015 and $110,0000 for the year ended December 31, 2015. On September 22, 2016, the Company sold such shares to Telkoor for $90,000. (see Note 1) Equity securities that do not have readily determinable fair values (i.e. non-marketable equity securities) and are not required to be accounted for under the equity method are typically carried at cost (i.e., cost method investments), as described in ASC 325-20. The Company has classified its investment in Telkoor's shares using the cost method in accordance with ASC 325-20 "Investments in Other". Paragraphs 320-10-35-17 through 35-35 discuss the methodology for determining impairment and evaluate whether the impairment is other than temporary and therefore should be recognized . |
Note 7 - Segments, Major Custom
Note 7 - Segments, Major Customers and Geographic Information | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | NOTE 7:- SEGMENTS, MAJOR CUSTOMERS AND GEOGRAPHIC INFORMATION The Company has two reportable geographic segments (see Note 1 for a brief description of the Company's business). The following data presents the revenues, expenditures and other operating data of the Company's geographic operating segments in accordance with ASC 218 "Segment Reporting" ("ASC 218"). Nine months ended September 30, 2016 (unaudited) DPC DPL Eliminations Total Revenues $ 3,408 $ 2,195 $ - $ 5,603 Intersegment revenues 89 - (89 ) - Total revenues $ 3,497 $ 2,195 $ (89 ) $ 5,603 Depreciation and amortization expense $ 57 $ 66 $ - $ 123 Operating income (loss) $ (147 ) $ (125 ) $ - $ (272 ) Impairment of investment - - - Financial expense, net (12 ) 97 85 Tax - 22 22 Net income (loss) $ (159 ) $ (6 ) $ - $ (165 ) Expenditures for segment assets, as of September 30, 2016 $ 23 $ 51 $ - $ 74 Total assets as of September 30, 2016 $ 2,084 $ 2,371 $ - $ 4,455 Nine months ended September 30, 2015 (unaudited) DPC DPL Eliminations Total Revenues $ 2,795 $ 2,667 $ - $ 5,462 Intersegment revenues 277 - (277 ) - Total revenues $ 3,072 $ 2,667 $ (277 ) $ 5,462 Depreciation and amortization expense $ 56 $ 118 $ - $ 174 Operating income (loss) $ (845 ) $ 62 $ - $ (783 ) Impairment of investment (106 ) (106 ) Financial expense, net (4 ) 22 18 Net income (loss) $ (849 ) $ (22 ) $ - $ (871 ) Expenditures for segment assets, as of September 30, 2015 $ 54 $ 76 $ - $ 130 Total assets as of September 30, 2015 $ 2,252 $ 2,930 $ - $ 5,182 Three months ended September 30, 2016 (unaudited) DPC DPL Eliminations Total Revenues $ 1,248 $ 578 $ - $ 1,826 Intersegment revenues 27 - (27 ) - Total revenues $ 1,275 $ 578 $ (27 ) $ 1,826 Depreciation and amortization expense $ 19 $ 21 $ - $ 40 Operating income (loss) $ 34 $ (117 ) $ - $ (83 ) Impairment of investment - - - Financial income (expense), net (2 ) 25 23 Tax - 22 22 Net income (loss) $ 32 $ (70 ) $ - $ (38 ) Expenditures for segment assets, as of September 30, 2016 $ - $ 4 $ - $ 4 Total assets as of September 30, 2016 $ 2,084 $ 2,371 $ - $ 4,455 Three months ended September 30, 2015 (unaudited) DPC DPL Eliminations Total Revenues $ 808 $ 607 $ - $ 1,415 Intersegment revenues 155 - (155 ) - Total revenues $ 963 $ 607 $ (155 ) $ 1,415 Depreciation and amortization expense $ 19 $ 36 $ - $ 55 Operating income (loss) $ (316 ) $ (101 ) $ - $ (417 ) Impairment of investment - - - Financial expense, net (4 ) 25 21 Net income (loss) $ (320 ) $ (76 ) $ - $ (396 ) Expenditures for segment assets, as of September 30, 2015 $ 4 $ 21 $ - $ 25 Total assets as of September 30, 2015 $ 2,252 $ 2,930 $ - $ 5,182 Major customer data as a percentage of total revenues: The following table sets forth the customers that represented 10% or more of the Company’s total revenues in the period of nine months ended September 30, 2016. Total Revenues by Major Customer (in thousands) Percentage of Total Company Revenues Customer A 1,176 21 % Revenue from customer A was attributable to DPC . |
Note 8 - Subsequent Events
Note 8 - Subsequent Events | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | NOTE 8:- SUBSEQUENT EVENTS On October 21, 2016, the Company entered into a 12% Convertible Secured Note (“Convertible Note”), a warrant to purchase 265,000 shares of common stock each at an exercise price of $0.80 (“$0.80 Warrant”), a warrant to purchase 265,000 shares of common stock each at an exercise price of $0.90 (“$0.90 Warrant” and together with the $0.80 Warrant collectively “Warrants”) and a registration rights agreement with an accredited investor (the “Investor”). The Convertible Note is in the principal amount of $530,000 and was sold for $500,000, bears interest at 12% simple interest on the principal amount, is secured by all the assets of the Company, and is due on October 20, 2019. Interest only payments are due on a quarterly basis and the principal may be converted into shares of the Company’s common stock at $0.55 per share. Subject to certain beneficial ownership limitations, the Investor may convert the principal amount of the Convertible Note at any time into common stock. The conversion price of the Convertible Note is subject to adjustment for customary stock splits, stock dividends, combinations or similar events. Upon 30 days' notice, the Company has the right to prepay the Convertible Note. In addition, provided that the closing price for a share of the Company’s common stock exceeds $3.00 per share for 30 consecutive trading days, the Company has the right to force the holder thereof to convert the principal amount into shares of common stock at the conversion rate. On November 3, 2016, subject to shareholder approval at the Company's next annual general meeting of shareholders to be held on December 28, 2016, the Company’s Board approved the 2016 Stock Incentive Plan (the “2016 Stock Incentive Plan”), under which options to acquire up to 4,000,000 shares of common stock may be granted to the Company's directors, officers, employees and consultants. The 2016 Stock Incentive Plan is in addition to the Company’s current 2012 Stock Option Plan, as amended (the “2012 Plan”), which provides for the issuance of a maximum of 1,372,630 shares of the Company’s common stock to be offered to the Company’s directors, officers, employees, and consultants. As of November 4, 2016, 522,500 options, net of cancellations, to purchase shares of Common Stock were granted under the 2012 Plan. If the 2016 Stock Incentive Plan is approved by the Company’s Shareholders, then 4,850,130 options shall be available for future issuance under the 2012 Plan and the 2016 Stock Incentive Plan. |
Note 3 - Inventories (Tables)
Note 3 - Inventories (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | September 30, December 31, 2016 2015 Unaudited Raw materials, parts and supplies $ 219 $ 336 Work in progress 213 191 Finished products 754 1,015 $ 1,186 $ 1,542 |
Note 4 - Accounting for Stock17
Note 4 - Accounting for Stock-based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Nine months ended September 30, 2016 Amount of options Weighted average exercise price Weighted average remaining contractual term (years) Aggregate intrinsic value (*) Outstanding at the beginning of the period 1,146,000 $ 1.52 6.74 $ - Expire 40,000 $ 1.16 Forfeited 105,000 $ 1.38 Outstanding at the end of the period 1,001,000 $ 1.55 6.05 $ 7 Exercisable options at the end of the period 756,000 $ 1.56 5.50 $ 3 |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | Nine months ended Three months ended September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015 Unaudited Unaudited Unaudited Unaudited Cost of goods sold 5 4 1 1 Sales and marketing expenses 3 8 1 2 Research and development 13 14 5 3 General and administrative 108 155 35 38 Total employees equity-based compensation expense 129 181 42 44 |
Note 5 - Income (Loss) Per Sh18
Note 5 - Income (Loss) Per Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Nine months ended September 30, Three months ended September 30, 2016 2015 2016 2015 Unaudited Denominator for basic net income per share of weighted average number of common shares 6,775,971 6,775,971 6,775,971 6,775,971 Effect of dilutive securities: Employee stock options -- - -- - Denominator for diluted net income per common share 6,775,971 6,775,971 6,775,971 6,775,971 Basic net income (loss) per share $ (0.02 ) $ (0.129 ) $ (0.01 ) $ (0.059 ) Diluted net income (loss) per share $ (0.02 ) $ (0.129 ) $ (0.01 ) $ (0.059 ) |
Note 7 - Segments, Major Cust19
Note 7 - Segments, Major Customers and Geographic Information (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Nine months ended September 30, 2016 (unaudited) DPC DPL Eliminations Total Revenues $ 3,408 $ 2,195 $ - $ 5,603 Intersegment revenues 89 - (89 ) - Total revenues $ 3,497 $ 2,195 $ (89 ) $ 5,603 Depreciation and amortization expense $ 57 $ 66 $ - $ 123 Operating income (loss) $ (147 ) $ (125 ) $ - $ (272 ) Impairment of investment - - - Financial expense, net (12 ) 97 85 Tax - 22 22 Net income (loss) $ (159 ) $ (6 ) $ - $ (165 ) Expenditures for segment assets, as of September 30, 2016 $ 23 $ 51 $ - $ 74 Total assets as of September 30, 2016 $ 2,084 $ 2,371 $ - $ 4,455 Nine months ended September 30, 2015 (unaudited) DPC DPL Eliminations Total Revenues $ 2,795 $ 2,667 $ - $ 5,462 Intersegment revenues 277 - (277 ) - Total revenues $ 3,072 $ 2,667 $ (277 ) $ 5,462 Depreciation and amortization expense $ 56 $ 118 $ - $ 174 Operating income (loss) $ (845 ) $ 62 $ - $ (783 ) Impairment of investment (106 ) (106 ) Financial expense, net (4 ) 22 18 Net income (loss) $ (849 ) $ (22 ) $ - $ (871 ) Expenditures for segment assets, as of September 30, 2015 $ 54 $ 76 $ - $ 130 Total assets as of September 30, 2015 $ 2,252 $ 2,930 $ - $ 5,182 Three months ended September 30, 2016 (unaudited) DPC DPL Eliminations Total Revenues $ 1,248 $ 578 $ - $ 1,826 Intersegment revenues 27 - (27 ) - Total revenues $ 1,275 $ 578 $ (27 ) $ 1,826 Depreciation and amortization expense $ 19 $ 21 $ - $ 40 Operating income (loss) $ 34 $ (117 ) $ - $ (83 ) Impairment of investment - - - Financial income (expense), net (2 ) 25 23 Tax - 22 22 Net income (loss) $ 32 $ (70 ) $ - $ (38 ) Expenditures for segment assets, as of September 30, 2016 $ - $ 4 $ - $ 4 Total assets as of September 30, 2016 $ 2,084 $ 2,371 $ - $ 4,455 Three months ended September 30, 2015 (unaudited) DPC DPL Eliminations Total Revenues $ 808 $ 607 $ - $ 1,415 Intersegment revenues 155 - (155 ) - Total revenues $ 963 $ 607 $ (155 ) $ 1,415 Depreciation and amortization expense $ 19 $ 36 $ - $ 55 Operating income (loss) $ (316 ) $ (101 ) $ - $ (417 ) Impairment of investment - - - Financial expense, net (4 ) 25 21 Net income (loss) $ (320 ) $ (76 ) $ - $ (396 ) Expenditures for segment assets, as of September 30, 2015 $ 4 $ 21 $ - $ 25 Total assets as of September 30, 2015 $ 2,252 $ 2,930 $ - $ 5,182 |
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | Total Revenues by Major Customer (in thousands) Percentage of Total Company Revenues Customer A 1,176 21 % |
Note 1 - General (Details Textu
Note 1 - General (Details Textual) $ in Millions | Sep. 05, 2016USD ($)shares | Sep. 30, 2016 |
Philou Ventures, LLC and Telkoor Telecom Ltd. [Member] | ||
Securities Purchase Agreement, Number of Shares Sold by One Shareholder to Another | 2,714,610 | |
Securities Purchase Agreement, Ownership Percentage Sold by One Shareholder to Another | 40.06% | |
Securities Purchase Agreement, Equity Interest Sold by One Shareholder to Another, Sale Price | $ | $ 1.5 | |
Telkoor [Member] | ||
Cost Method Investment Sold, Shares | 1,136,666 | |
Number of Reportable Segments | 2 |
Note 3 - Inventories - Summary
Note 3 - Inventories - Summary of Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Raw materials, parts and supplies | $ 219 | $ 336 |
Work in progress | 213 | 191 |
Finished products | 754 | 1,015 |
$ 1,186 | $ 1,542 |
Note 4 - Accounting for Stock22
Note 4 - Accounting for Stock-based Compensation (Details Textual) $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2016USD ($)$ / sharesshares | |
Employee Stock Option [Member] | The 2012 Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,372,630 |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 812,630 |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 |
Share Price | $ / shares | $ 0.77 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ | $ 274 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 240 days |
Note 4 - Accounting for Stock23
Note 4 - Accounting for Stock-based Compensation - Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | ||
Outstanding (in shares) | 1,146,000 | ||
Outstanding (in dollars per share) | $ 1.52 | ||
Outstanding at the beginning of the period | 6 years 18 days | 6 years 270 days | |
Outstanding at the beginning of the period | [1] | $ 7 | |
Expire (in shares) | 40,000 | ||
Expire (in dollars per share) | $ 1.16 | ||
Forfeited (in shares) | 105,000 | ||
Forfeited (in dollars per share) | $ 1.38 | ||
Outstanding (in shares) | 1,001,000 | 1,146,000 | |
Outstanding (in dollars per share) | $ 1.55 | $ 1.52 | |
Exercisable options at the end of the period (in shares) | 756,000 | ||
Exercisable options at the end of the period (in dollars per share) | $ 1.56 | ||
Exercisable options at the end of the period | 5 years 182 days | ||
Exercisable options at the end of the period | [1] | $ 3 | |
[1] | Calculation of aggregate intrinsic value is based upon the share price of the Company's common stock as of September 30, 2016 $0.77 per share. |
Note 4 - Accounting for Stock24
Note 4 - Accounting for Stock-based Compensation - Equity Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Cost of Sales [Member] | ||||
Allocated share-based compensation expense | $ 1 | $ 1 | $ 5 | $ 4 |
Selling and Marketing Expense [Member] | ||||
Allocated share-based compensation expense | 1 | 2 | 3 | 8 |
Research and Development Expense [Member] | ||||
Allocated share-based compensation expense | 5 | 3 | 13 | 14 |
General and Administrative Expense [Member] | ||||
Allocated share-based compensation expense | 35 | 38 | 108 | 155 |
Allocated share-based compensation expense | $ 42 | $ 44 | $ 129 | $ 181 |
Note 5 - Income (Loss) Per Sh25
Note 5 - Income (Loss) Per Share - Computation of Basic and Diluted Net Loss Per Share (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Denominator for basic net income per share of weighted average number of common shares (in shares) | 6,775,971 | 6,775,971 | 6,775,971 | 6,775,971 |
Denominator for diluted net income per common share (in shares) | 6,775,971 | 6,775,971 | 6,775,971 | 6,775,971 |
Basic net income (loss) per share (in dollars per share) | $ (0.01) | $ (0.059) | $ (0.02) | $ (0.129) |
Diluted net income (loss) per share (in dollars per share) | $ (0.01) | $ (0.059) | $ (0.02) | $ (0.129) |
Note 6 - Investment in Telkoor
Note 6 - Investment in Telkoor (Details Textual) - USD ($) | Sep. 22, 2016 | Jun. 16, 2011 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 |
Telkoor [Member] | |||||||
Business Acquisition Shares Acquired | 1,136,666 | ||||||
Business Acquisition, Percentage of Voting Interests Acquired | 8.80% | ||||||
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net, Available-for-sale Securities | $ 0 | $ 106,000 | $ 1,100,000 | ||||
Telkoor [Member] | |||||||
Proceeds from Sale of Cost Method Investments | $ 90,000 | ||||||
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net, Available-for-sale Securities | 106,000 | ||||||
Proceeds from Sale of Cost Method Investments | $ 90,000 |
Note 7 - Segments, Major Cust27
Note 7 - Segments, Major Customers and Geographic Information (Details Textual) | 9 Months Ended |
Sep. 30, 2016 | |
Number of Reportable Segments | 2 |
Note 7 - Segments, Major Cust28
Note 7 - Segments, Major Customers and Geographic Information - Segment Reporting (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Operating Segments [Member] | DPC [Member] | |||||
Revenues | $ 1,248,000 | $ 808,000 | $ 3,408,000 | $ 2,795,000 | |
Intersegment revenues | 27,000 | 155,000 | 89,000 | 277,000 | |
Total Revenues by Major Customer | 1,275,000 | 963,000 | 3,497,000 | 3,072,000 | |
Depreciation and amortization expense | 19,000 | 19,000 | 57,000 | 56,000 | |
Operating income (loss) | 34,000 | (316,000) | (147,000) | (845,000) | |
Impairment of investment | |||||
Financial income (expense), net | (2,000) | (4,000) | (12,000) | (4,000) | |
Tax | |||||
Net loss | 32,000 | (320,000) | (159,000) | (849,000) | |
Expenditures for segment assets | 4,000 | 23,000 | 54,000 | ||
Total assets | 2,084,000 | 2,252,000 | 2,084,000 | 2,252,000 | |
Operating Segments [Member] | DPL [Member] | |||||
Revenues | 578,000 | 607,000 | 2,195,000 | 2,667,000 | |
Intersegment revenues | |||||
Total Revenues by Major Customer | 578,000 | 607,000 | 2,195,000 | 2,667,000 | |
Depreciation and amortization expense | 21,000 | 36,000 | 66,000 | 118,000 | |
Operating income (loss) | (117,000) | (101,000) | (125,000) | 62,000 | |
Impairment of investment | (106,000) | ||||
Financial income (expense), net | 25,000 | 25,000 | 97,000 | 22,000 | |
Tax | 22,000 | 22,000 | |||
Net loss | (70,000) | (76,000) | (6,000) | (22,000) | |
Expenditures for segment assets | 4,000 | 21,000 | 51,000 | 76,000 | |
Total assets | 2,371,000 | 2,930,000 | 2,371,000 | 2,930,000 | |
Intersegment Eliminations [Member] | |||||
Revenues | |||||
Intersegment revenues | (27,000) | (155,000) | (89,000) | (277,000) | |
Total Revenues by Major Customer | (27,000) | (155,000) | (89,000) | (277,000) | |
Depreciation and amortization expense | |||||
Operating income (loss) | |||||
Impairment of investment | |||||
Financial income (expense), net | |||||
Tax | |||||
Net loss | |||||
Expenditures for segment assets | |||||
Total assets | |||||
Revenues | 1,826,000 | 1,415,000 | 5,603,000 | 5,462,000 | |
Intersegment revenues | |||||
Total Revenues by Major Customer | 1,826,000 | 1,415,000 | 5,603,000 | 5,462,000 | |
Depreciation and amortization expense | 40,000 | 55,000 | 123,000 | 174,000 | |
Operating income (loss) | (83,000) | (417,000) | (272,000) | (783,000) | |
Impairment of investment | (106,000) | ||||
Financial income (expense), net | 23,000 | 21,000 | 85,000 | 18,000 | |
Tax | 22,000 | 22,000 | |||
Net loss | (38,000) | (396,000) | (165,000) | (871,000) | |
Expenditures for segment assets | 4,000 | 25,000 | 74,000 | 130,000 | |
Total assets | $ 4,455,000 | $ 5,182,000 | $ 4,455,000 | $ 5,182,000 | $ 5,099,000 |
Note 7 - Segments, Major Cust29
Note 7 - Segments, Major Customers and Geographic Information - Customer Concentration Risk (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | Customer A [Member] | ||||
Total Revenues by Major Customer | $ 1,176 | |||
Percentage of Total Company Revenues | 21.00% | |||
Total Revenues by Major Customer | $ 1,826 | $ 1,415 | $ 5,603 | $ 5,462 |
Note 8 - Subsequent Events (Det
Note 8 - Subsequent Events (Details Textual) - USD ($) | Oct. 21, 2016 | Nov. 04, 2016 | Nov. 03, 2016 | Sep. 30, 2016 |
Subsequent Event [Member] | Convertible Note [Member] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 12.00% | |||
Debt Instrument, Face Amount | $ 530,000 | |||
Proceeds from Convertible Debt | $ 500,000 | |||
Debt Instrument, Convertible, Conversion Price | $ 0.55 | |||
Debt Instrument, Convertible, Period of Notice for Right to Prepayment | 30 days | |||
Debt Instrument, Convertible, Stock Price Trigger | $ 3 | |||
Debt Instrument, Convertible, Threshold Consecutive Trading Days | 30 days | |||
Subsequent Event [Member] | The $0.80 Warrant [Member] | ||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 265,000 | |||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.80 | |||
Subsequent Event [Member] | The $0.90 Warrant [Member] | ||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 265,000 | |||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.90 | |||
Subsequent Event [Member] | The 2016 Stock Incentive Plan [Member] | Employee Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 4,000,000 | |||
Subsequent Event [Member] | The 2012 Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Shares Granted to Date, Net of Cancellations | 522,500 | |||
Subsequent Event [Member] | The 2012 Plan and the 2016 Stock Incentive Plan [Member] | Employee Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 4,850,130 | |||
The 2012 Plan [Member] | Employee Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,372,630 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 812,630 |