Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Aug. 01, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,015 | |
Entity Registrant Name | IMAGE SENSING SYSTEMS INC | |
Entity Central Index Key | 943,034 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 5,005,803 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 575 | $ 2,656 |
Accounts receivable, net of allowance for doubtful accounts of $106 and $516, respectively | 5,102 | 4,219 |
Inventories | 2,204 | 2,234 |
Prepaid expenses and other current assets | 648 | 871 |
Total current assets | 8,529 | 9,980 |
Property and equipment: | ||
Furniture and fixtures | 651 | 620 |
Leasehold improvements | 575 | 556 |
Equipment | 3,925 | 3,964 |
Property and equipment, gross | 5,151 | 5,140 |
Accumulated depreciation | 4,410 | 4,279 |
Property and equipment, net | 741 | 861 |
Intangible assets, net | 3,228 | 3,987 |
Deferred income taxes | 61 | 62 |
TOTAL ASSETS | 12,559 | 14,890 |
Current liabilities: | ||
Accounts payable | 3,145 | 3,315 |
Warranty and other current liabilities | 2,623 | 2,783 |
Accrued restructuring | 216 | |
Total current liabilities | 5,768 | 6,314 |
Deferred income taxes | 166 | 165 |
Other long-term liabilities | $ 80 | $ 91 |
Shareholders' equity | ||
Preferred stock, $.01 par value; 5,000,000 shares authorized, none issued or outstanding | ||
Common stock, $.01 par value; 20,000,000 shares authorized, 5,013,663 and 4,995,963 issued and outstanding, respectively | $ 50 | $ 49 |
Additional paid-in capital | 23,698 | 23,547 |
Accumulated other comprehensive loss | (177) | (158) |
Accumulated deficit | (17,026) | (15,118) |
Total shareholders' equity | 6,545 | 8,320 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 12,559 | $ 14,890 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 106 | $ 516 |
Preferred stock, par value | $ .01 | $ .01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding | ||
Common stock, par value | $ .01 | $ .01 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 5,013,663 | 4,995,963 |
Common stock, shares outstanding | 5,013,663 | 4,995,963 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Revenue: | ||||
Product sales | $ 2,572 | $ 2,651 | $ 4,900 | $ 4,549 |
Royalties | 2,609 | 3,287 | 4,620 | 5,711 |
Total revenue | 5,181 | 5,938 | 9,520 | 10,260 |
Cost of revenue: | ||||
Product sales | 977 | 1,675 | 1,996 | 2,880 |
Total cost of revenue | 977 | 1,675 | 1,996 | 2,880 |
Gross profit | 4,204 | 4,263 | 7,524 | 7,380 |
Operating expenses: | ||||
Selling, marketing and product support | 1,322 | 2,471 | 2,737 | 5,191 |
General and administrative | 1,390 | 1,498 | 2,762 | 2,870 |
Research and development | 1,123 | 1,423 | 2,200 | 3,239 |
Amortization of intangible assets | 382 | $ 393 | 763 | $ 782 |
Sale of business unit | $ 751 | 857 | ||
Restructuring | $ 119 | $ 460 | ||
Investigation matter | $ 36 | 152 | ||
Total operating expenses | $ 4,968 | 5,821 | $ 9,438 | 12,694 |
Loss from operations | (764) | (1,558) | (1,914) | (5,314) |
Other, net | 30 | 15 | 29 | 14 |
Loss before income taxes | (734) | (1,543) | (1,885) | (5,300) |
Income tax expense (benefit) | 8 | (10) | 24 | (10) |
Net loss | $ (742) | $ (1,533) | $ (1,909) | $ (5,290) |
Net loss per share: | ||||
Basic | $ (0.15) | $ (0.31) | $ (0.38) | $ (1.06) |
Diluted | $ (0.15) | $ (0.31) | $ (0.38) | $ (1.06) |
Weighted average number of common shares outstanding: | ||||
Basic | 5,008,000 | 4,980,000 | 5,003,000 | 4,978,000 |
Diluted | 5,008,000 | 4,980,000 | 5,003,000 | 4,978,000 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Loss before income taxes | $ (742) | $ (1,533) | $ (1,909) | $ (5,290) |
Other comprehensive Income: | ||||
Foreign currency translation adjustment | 158 | 184 | (19) | 215 |
Comprehensive loss | $ (584) | $ (1,349) | $ (1,928) | $ (5,075) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Operating activities: | ||
Net loss | $ (1,909) | $ (5,290) |
Adjustments to reconcile net loss to net cash used for operating activities: | ||
Depreciation | 173 | 298 |
Amortization | 763 | 782 |
Stock-based compensation | 151 | $ 186 |
Loss on disposal of assets | 4 | |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (883) | $ 266 |
Inventories | 30 | 20 |
Prepaid expenses and current assets | 223 | 173 |
Accounts payable | (170) | 801 |
Accrued expenses and other liabilities | (382) | (820) |
Net cash used for operating activities | (2,000) | (3,584) |
Investing activities: | ||
Purchases of property and equipment | $ (62) | (196) |
Sales and maturities of marketable securities | 2,639 | |
Capitalized software development costs | (42) | |
Net cash provided by (used for) investing activities | $ (62) | 2,401 |
Financing activities: | ||
Effect of exchange rate changes on cash | (19) | 195 |
Decrease in cash and cash equivalents | (2,081) | (988) |
Cash and cash equivalents at beginning of period | 2,656 | 3,564 |
Cash and cash equivalents at end of period | $ 575 | $ 2,576 |
Proforma Consolidated Statement
Proforma Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2015 | ||
Revenue: | ||
Product sales | $ 2,572 | |
Royalties | 2,609 | |
Total revenue | 5,181 | |
Cost of revenue: | ||
Product sales | 977 | |
Total cost of revenue | 977 | |
Gross profit | 4,204 | |
Operating expenses: | ||
Selling, marketing and product support | 1,322 | |
General and administrative | 1,390 | |
Research and development | 1,123 | |
Amortization of intangible assets | 382 | |
LPR business unit sale costs | 751 | |
Total operating expenses | 4,968 | |
Loss from operations | (764) | |
Other, net | 30 | |
Loss before income taxes | (734) | |
Income tax expense (benefit) | 8 | |
Net loss | $ (742) | |
Net loss per share: | ||
Basic | $ (0.15) | |
Diluted | $ (0.15) | |
Weighted average number of common shares outstanding: | ||
Basic | 5,008,000 | |
Diluted | 5,008,000 | |
Scenario, Actual [Member] | ||
Revenue: | ||
Product sales | $ 2,572 | |
Royalties | 2,609 | |
Total revenue | 5,181 | |
Cost of revenue: | ||
Product sales | 977 | |
Total cost of revenue | 977 | |
Gross profit | 4,204 | |
Operating expenses: | ||
Selling, marketing and product support | 1,322 | |
General and administrative | 1,390 | |
Research and development | 1,123 | |
Amortization of intangible assets | 382 | |
LPR business unit sale costs | 751 | |
Total operating expenses | 4,968 | |
Loss from operations | (764) | |
Other, net | 30 | |
Loss before income taxes | (734) | |
Income tax expense (benefit) | 8 | |
Net loss | $ (742) | |
Net loss per share: | ||
Basic | $ (0.15) | |
Diluted | $ (0.15) | |
Weighted average number of common shares outstanding: | ||
Basic | 5,008,000 | |
Diluted | 5,008,000 | |
Pro Forma Adjustments LPR Disposition [Member] | ||
Revenue: | ||
Product sales | [1] | $ 774 |
Royalties | ||
Total revenue | $ 774 | |
Cost of revenue: | ||
Product sales | [1] | 121 |
Total cost of revenue | 121 | |
Gross profit | 653 | |
Operating expenses: | ||
Selling, marketing and product support | [2] | 466 |
General and administrative | [2] | 410 |
Research and development | [2] | 164 |
Amortization of intangible assets | [2] | 259 |
LPR business unit sale costs | [3] | 751 |
Total operating expenses | 2,050 | |
Loss from operations | $ (1,397) | |
Other, net | ||
Loss before income taxes | $ (1,397) | |
Income tax expense (benefit) | ||
Net loss | $ (1,397) | |
Net loss per share: | ||
Basic | $ (0.28) | |
Diluted | $ (0.28) | |
Weighted average number of common shares outstanding: | ||
Basic | 5,008,000 | |
Diluted | 5,008,000 | |
Image Sensing Systems Pro Forma Consolidated [Member] | ||
Revenue: | ||
Product sales | $ 1,798 | |
Royalties | 2,609 | |
Total revenue | 4,407 | |
Cost of revenue: | ||
Product sales | 856 | |
Total cost of revenue | 856 | |
Gross profit | 3,551 | |
Operating expenses: | ||
Selling, marketing and product support | 856 | |
General and administrative | 980 | |
Research and development | 959 | |
Amortization of intangible assets | $ 123 | |
LPR business unit sale costs | ||
Total operating expenses | $ 2,918 | |
Loss from operations | 633 | |
Other, net | 30 | |
Loss before income taxes | 663 | |
Income tax expense (benefit) | 8 | |
Net loss | $ 655 | |
Net loss per share: | ||
Basic | $ 0.13 | |
Diluted | $ 0.13 | |
Weighted average number of common shares outstanding: | ||
Basic | 5,008,000 | |
Diluted | 5,008,000 | |
[1] | Represents the decrease of LPR revenue and cost of sales as if the divestiture occurred on April 1, 2015. | |
[2] | Represents the pro forma decrease of operating cost as if the LPR divestiture occurred on April 1, 2015. | |
[3] | Represents the LPR business unit sale costs. |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Note A: Basis of Presentation Image Sensing Systems, Inc. (referred to herein as we, the Company, us and our) develops and markets software-based computer enabled detection products for use in traffic, security, police and parking applications. We sell our products primarily to distributors and also receive royalties under a license agreement with a manufacturer/distributor for certain of our products. Our products are used primarily by governmental entities. The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and with the instructions to the Quarterly Report on Form 10-Q, which require the Company to make estimates and assumptions that affect amounts reported. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to rules and regulations of the Securities and Exchange Commission (the SEC). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. It is the opinion of management that the unaudited condensed consolidated financial statements include all adjustments consisting of normal recurring accruals considered necessary for a fair presentation. All significant intercompany balances and transactions have been eliminated. Operating results for the three-month and six-month periods ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. The accompanying condensed consolidated financial statements of the Company should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Companys Annual Report on Form 10-K for the fiscal year ended December 31, 2014 as filed with the SEC. Summary of Significant Accounting Policies The Company believes that of its significant accounting policies, the following are particularly important to the portrayal of the Companys results of operations and financial position and may require the application of a higher level of judgment by the Companys management and, as a result, are subject to an inherent degree of uncertainty. Revenue Recognition We recognize revenue on a sales arrangement when it is realized or realizable and earned, which occurs when all of the following criteria have been met: persuasive evidence of an arrangement exists; delivery and title transfer have occurred or services have been rendered; the sales price is fixed and determinable; collectability is reasonably assured; and all significant obligations to the customer have been fulfilled. Certain sales may contain multiple elements for revenue recognition purposes. We consider each deliverable that provides value to the customer on a standalone basis as a separable element. Separable elements in these arrangements may include the hardware, software, installation services, training and support. We initially allocate consideration to each separable element using the relative selling price method. Selling prices are determined by us based on either vendor-specific objective evidence (VSOE) (the actual selling prices of similar products and services sold on a standalone basis) or, in the absence of VSOE, our best estimate of the selling price. Factors considered by us in determining estimated selling prices for applicable elements generally include overall economic conditions, customer demand, costs incurred by us to provide the deliverable, as well as our historical pricing practices. Under these arrangements, revenue associated with each delivered element is recognized in an amount equal to the lesser of the consideration initially allocated to the delivered element or the amount for which payment is not deemed contingent upon future delivery of other elements in the arrangement. Under arrangements where special acceptance protocols exist, installation services and training may not be considered separable. Under those circumstances, revenue for the entire arrangement is recognized upon the completion of installation, training and fulfillment of any other significant obligations specific to the terms of the arrangement. Arrangements that do not contain any separable elements are typically recognized when the products are shipped and title has transferred to the customer. Revenue from arrangements for services such as maintenance, repair, consulting and technical support are recognized either as the service is performed or ratably over the defined contractual period for service maintenance contracts. Econolite Control Products, Inc. (Econolite) is our licensee that sells certain of our products in the United States, Mexico, Canada and the Caribbean. The royalty of approximately 50% of the gross profit on licensed products is recognized when the products are shipped or delivered by Econolite to its customers. We record provisions against sales revenue for estimated returns and allowances in the period when the related revenue is recorded based on historical sales returns and changes in end user demand. Revenue is recorded net of taxes collected from customers that are remitted to governmental authorities, with the collected taxes recorded as current liabilities until remitted to the relevant government authority. Inventories Inventories are primarily electronic components and finished goods and are valued at the lower of cost or market on the first-in, first-out accounting method. Income Taxes We record a tax provision for the anticipated tax consequences of the reported results of operations. Deferred tax assets and liabilities are measured using the currently enacted tax rates that apply to taxable income in effect for the years in which those deferred tax assets and liabilities are expected to be realized or settled. We record a valuation allowance to reduce deferred tax assets to the amount that is believed more likely than not to be realized. We believe it is more likely than not that forecasted income, including income that may be generated as a result of certain tax planning strategies, together with the tax effects of the deferred tax liabilities, will be sufficient to fully recover the remaining net realizable value of deferred tax assets. In the event that all or part of the net deferred tax assets are determined not to be realizable in the future, an adjustment to the valuation allowance would be charged to earnings in the period such determination is made. In addition, the calculation of tax liabilities involves significant judgment in estimating the impact of uncertainties in the application of complex tax laws. Resolution of these uncertainties in a manner inconsistent with managements expectations could have a material impact on our financial condition and operating results. We recognize penalties and interest expense related to unrecognized tax benefits in income tax expense. Intangible Assets Intangible assets with finite lives are amortized on a straight-line basis over the expected period to be benefited by future cash flows and reviewed for impairment. At both June 30, 2015 and December 31, 2014, we determined there was no impairment of intangible assets. At both June 30, 2015 and December 31, 2014, there were no indefinite-lived intangible assets. We capitalize certain software development costs related to software to be sold, leased, or otherwise marketed. Capitalized software development costs include purchased materials and services and other costs associated with the development of new products and services. Software development costs are expensed as incurred until technological feasibility has been established, at which time future costs incurred are capitalized until the product is available for general release to the public. A certain amount of judgment and estimation is required to assess when technological feasibility is established, as well as the ongoing assessment of the recoverability of capitalized costs. In evaluating the recoverability of capitalized software costs, the Company compares expected product performance, utilizing forecasted revenue amounts, to the total costs incurred to date and estimates of additional costs to be incurred. If revised forecasted product revenue is less than, and/or revised forecasted costs are greater than, the previously forecasted amounts, the net realizable value may be lower than previously estimated, which could result in the recognition of an impairment charge in the period in which such a determination is made. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Note B: Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers. ASU 2014-09 provides new guidance related to how an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, ASU 2014-09 specifies new accounting for costs associated with obtaining or fulfilling contracts with customers and expands the required disclosures related to revenue and cash flows from contracts with customers. On July 9, 2015, FASB affirmed its proposal to defer the effective date of ASU 2014-09 for all entities by one year. As a result, public business entities, certain not-for-profit entities, and certain employee benefit plans will apply the new revenue standard to annual reporting periods beginning after December 15, 2017. All other entities will apply the new revenue standard to annual reporting periods beginning after December 15, 2018. Additionally, FASB affirmed its proposal to permit all entities to apply ASU 2014-09 early, but not before the original effective date for public business entities, certain not-for-profit entities, and certain employee benefit plans (that is, annual periods beginning after December 15, 2016). Entities choosing to implement early will apply the new revenue standard to all interim reporting periods within the year of adoption. The Company is currently determining its implementation approach and assessing the impact of ASU 2014-09 on the condensed consolidated financial statements. |
Fair Value Measurements and Mar
Fair Value Measurements and Marketable Securities | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Marketable Securities | Note C: Fair Value Measurements The guidance for fair value measurements establishes the authoritative definition of fair value, sets out a framework for measuring fair value and outlines the required disclosures regarding fair value measurements. Fair value is the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. We use a three-tier fair value hierarchy based upon observable and non-observable inputs as follows: Level 1 observable inputs such as quoted prices in active markets; Level 2 inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and Level 3 unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. Nonfinancial Assets Measured at Fair Value on a Nonrecurring Basis Our intangible assets and other long-lived assets are nonfinancial assets that were acquired either as part of a business combination, individually or with a group of other assets. These nonfinancial assets were initially, and have historically been, measured and recognized at amounts equal to the fair value determined as of the date of acquisition. Financial Instruments not Measured at Fair Value Certain of our financial instruments are not measured at fair value and are recorded at carrying amounts approximating fair value, based on their short-term nature or variable interest rate. These financial instruments include cash and cash equivalents, accounts receivable, accounts payable and other current assets and liabilities. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | Note D: Inventories Inventories consisted of the following (in thousands): June 30, December 31, 2015 2014 Components $ 1,742 $ 1,760 Finished goods 462 474 $ 2,204 $ 2,234 |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 30, 2015 | |
Intangible Assets | |
Intangible Assets | Note E: Intangible Assets Intangible assets consisted of the following (dollars in thousands): June 30, 2015 Weighted Gross Net Average Carrying Accumulated Carrying Useful Life Amount Amortization Value (in Years) Developed technology $ 8,121 (6,219 ) $ 1,902 2.2 Trade names 3,267 (2,495 ) 772 3.0 Other intangible assets 1,796 (1,242 ) 554 1.7 Total $ 13,184 $ (9,956 ) $ 3,228 2.2 December 31, 2014 Weighted Gross Net Average Carrying Accumulated Carrying Useful Life Amount Amortization Value (in Years) Developed technology $ 8,114 $ (5,666 ) $ 2,448 2.6 Trade names 3,267 (2,367 ) 900 3.5 Other intangible assets 1,777 (1,138 ) 639 2.2 Total $ 13,158 $ (9,171 ) $ 3,987 2.7 |
Credit Facilities
Credit Facilities | 6 Months Ended |
Jun. 30, 2015 | |
Line of Credit Facility [Abstract] | |
Credit Facilities | Note F: Credit Facilities In May 2014, the Company entered into a credit agreement and related documents with Alliance Bank providing for a revolving line of credit for the Company. The credit agreement and related documents with Alliance Bank (collectively, the Alliance Credit Agreement) provide up to a $5.0 million revolving line of credit. Amounts due under the Alliance Credit Agreement bear interest at a fixed annual rate of 3.95%. Any advances are secured by the Companys inventories, accounts receivable, cash, marketable securities, and equipment. We are subject to certain covenants under the Alliance Credit Agreement. In March 2015, we entered into an agreement with Alliance Bank amending the Alliance Credit Agreement to extend the maturity date from May 12, 2015 to April 1, 2016. At June 30, 2015, we had no borrowings under the Alliance Credit Agreement, and we were in compliance with all financial covenants. Prior to May 12, 2014, we had a revolving line of credit with Associated Bank, National Association (Associated Bank) that was initially entered into as of May 1, 2008. We requested, and Associated Bank granted, a termination to this credit facility effective on May 12, 2014 in connection with the revolving line of credit from Alliance Bank described above. |
Warranties
Warranties | 6 Months Ended |
Jun. 30, 2015 | |
Product Warranties Disclosures [Abstract] | |
Warranties | Note G: Warranties We generally provide a standard two-year warranty on product sales. Reserves to honor warranty claims are estimated and recorded at the time of sale based on historical claim information and are analyzed and adjusted periodically based on claim trends. Warranty liability and related activity consisted of the following (in thousands): Six-Month Periods Ended June 30, 2015 2014 Beginning balance $ 966 $ 934 Warranty provisions 59 53 Warranty claims (103 ) (173 ) Adjustments to preexisting warranties (151 ) (81 ) Ending balance $ 771 $ 733 |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Note H: Stock-Based Compensation We compensate officers, directors and key employees with stock-based compensation under stock option and incentive plans approved by our shareholders and administered under the supervision of our Board of Directors. Stock option awards are granted at exercise prices equal to the closing price of our stock on the day before the date of grant. Generally, options vest proportionally over periods of three to five years from the dates of the grant, beginning one year from the date of grant, and have a contractual term of nine to ten years. Performance stock options are time based; however, the final number of awards earned and the related compensation expense is adjusted up or down to the extent the performance target is met. The actual number of shares that will ultimately vest ranges from 90% to 100% of the targeted amount if the minimum performance target is achieved. For performance stock awards granted in 2015, the performance target is operating income. We evaluate the likelihood of meeting the performance target at each reporting period and adjust compensation expense, on a cumulative basis, based on the expected achievement of each performance target. Compensation expense, net of estimated forfeitures, is recognized ratably over the vesting period. Stock-based compensation expense included in general and administrative expense for the three-month periods ended June 30, 2015 and 2014 was $76,000 and $99,000, respectively. Stock-based compensation expense included in general and administrative expense for the six-month periods ended June 30, 2015 and 2014 was $151,000 and $186,000, respectively. At June 30, 2015, a total of 392,140 shares were available for grant under the Companys stock option and incentive plan. Stock Options A summary of the option activity for the first six months of 2015 is as follows: Weighted Weighted Average Average Exercise Remaining Aggregate Number of Price per Contractual Intrinsic Shares Share Term (in years) Value Options outstanding at December 31, 2014 354,000 $ 6.30 7.0 $ Granted 50,000 $ 2.73 5.0 $ Exercised $ $ Expired (3,000 ) $ 9.22 $ Forfeited (54,000 ) $ 5.57 $ Options outstanding at June 30, 2015 347,000 $ 5.88 6.9 $ 37,000 Options exercisable at June 30, 2015 155,750 $ 7.23 5.2 $ There were no options exercised during the three-month and six-month periods ended June 30, 2015 and June 30, 2014. As of June 30, 2015, there was $347,000 of total unrecognized compensation cost related to non-vested stock options. The weighted average period over which the compensation cost is expected to be recognized is 2.3 years. Stock Awards We issue stock awards as a portion of the annual retainer for each director on a quarterly basis. The stock awards are fully vested at the time of issuance. Compensation expense related to stock awards is determined on the grant date based on the publicly quoted fair market value of our common stock and is charged to earnings on the grant date. During the quarter ended June 30, 2015, there were stock awards issued for 7,860 shares with a weighted-average grant date fair value of $3.18. For the six months ended June 30, 2015, there were stock awards issued for 17,700 shares with a weighted-average grand date fair value of $2.82. |
Loss per Common Share
Loss per Common Share | 6 Months Ended |
Jun. 30, 2015 | |
Net loss per share: | |
Loss per Common Share | Note I: Loss per Common Share Net loss per share is computed by dividing net loss by the daily weighted average number of common shares outstanding during the applicable periods. Diluted net loss per share includes the potentially dilutive effect of common shares subject to outstanding stock options using the treasury stock method. Under the treasury stock method, shares subject to certain outstanding stock options have been excluded from the diluted weighted average shares outstanding calculation because the exercise of those options would lead to a net reduction in common shares outstanding. As a result, stock options to acquire 351,000 and 343,000 weighted common shares have been excluded from the diluted weighted shares outstanding for the three-month periods ended June 30, 2015 and 2014, respectively, and 557,000 and 337,000 weighted common shares have been excluded from the diluted weighted shares outstanding for the six-month periods ended June 30, 2015 and 2014, respectively. The potentially dilutive effect of common shares subject to certain outstanding stock options is determined based on net loss. A reconciliation of these amounts is as follows (dollar amounts in thousands except per share data): Three-Month Periods Ended Six-Month Periods Ended 2015 2014 2015 2014 Numerator: Net loss $ (742 ) $ (1,533 ) $ (1,909 ) $ (5,290 ) Denominator: Weighted average common shares outstanding 5,008 4,980 5,003 4,978 Dilutive potential common shares Shares used in diluted net loss per common share calculations 5,008 4,980 5,003 4,978 Basic net loss per common share $ (0.15 ) $ (0.31 ) $ (0.38 ) $ (1.06 ) Diluted net loss per common share $ (0.15 ) $ (0.31 ) $ (0.38 ) $ (1.06 ) |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | Note J: Segment Information The Companys Interim Chief Executive Officer and management regularly review financial information for the Companys three discrete operating segments. Based on similarities in the economic characteristics, nature of products and services, production processes, type or class of customer served, method of distribution and regulatory environments, the operating segments have been aggregated for financial statement purposes and categorized into three reportable segments: Intersection, Highway and License Plate Recognition (LPR). Autoscope® video is our machine-vision product line, and revenue consists of royalties (all of which are received from Econolite), as well as a portion of international product sales. Video products are normally sold in the Intersection segment. RTMS® is our radar product line, and revenue consists of international and North American product sales as well as a portion of royalties (all of which are received from Econolite). Radar products are normally sold in the Highway segment. Until July 9, 2015, Autoscope® license plate recognition was our LPR product line. All segment revenues are derived from external customers. As described in Note M to these Notes to the Condensed Consolidated Financial Statements, effective on July 9, 2015, we sold our LPR business. Operating expenses and total assets are not allocated to the segments for internal reporting purposes. Due to the changes in how we manage our business, we may reevaluate our segment definitions in the future. The following tables set forth selected unaudited financial information for each of our reportable segments (in thousands): Three Months Ended June 30, Intersection Highway LPR Total 2015 2014 2015 2014 2015 2014 2015 2014 Revenue $ 3,189 $ 3,625 $ 1,218 $ 1,094 $ 774 $ 1,219 $ 5,181 $ 5,938 Gross profit 2,768 3,242 783 488 653 533 4,204 4,263 Amortization of intangible assets 122 121 260 272 382 393 Intangible assets 210 698 3,018 5,065 3,228 5,763 Six Months Ended June 30, Intersection Highway LPR Total 2015 2014 2015 2014 2015 2014 2015 2014 Revenue $ 5,350 $ 5,808 $ 2,284 $ 2,169 $ 1,886 $ 2,283 $ 9,520 $ 10,260 Gross profit 4,828 5,347 1,363 1,166 1,333 867 7,524 7,380 Amortization of intangible assets 244 244 519 538 763 782 Intangible assets |
Restructuring
Restructuring | 6 Months Ended |
Jun. 30, 2015 | |
Restructuring Charges [Abstract] | |
Restructuring | Note K: Restructuring In the fourth quarter of 2014, the Company implemented restructuring plans to close our offices in Asia. Because of these actions, restructuring charges of approximately $119,000 were recorded in the first six months of 2015 related to employee terminations. The following table shows the restructuring activity for 2015 (in thousands): Facility Costs Termination and Contract Benefits Termination Total Balance at January 1, 2015 $ 190 $ 26 $ 216 Charges 119 119 Payments/settlements (295 ) (8 ) (303 ) Balance at March 31, 2015 $ 14 $ 18 $ 32 Payments/settlements (14 ) (18 ) (32 ) Balance at June 30, 2015 $ $ $ In the first quarter of 2014, the Company implemented restructuring plans to improve our financial performance in Europe. These plans included the closure of our office in Poland. Because of these actions, restructuring charges of approximately $460,000 were recorded related primarily to facilities and employee terminations. The following table shows the restructuring activity for 2014 (in thousands): Facility Costs Termination and Contract Benefits Termination Total Balance at January 1, 2014 $ $ $ Charges 60 400 460 Payments/settlements (45 ) (177 ) (222 ) Balance at March 31, 2014 $ 15 $ 223 $ 238 Payments/settlements (15 ) (223 ) (238 ) Balance at June 30, 2014 $ $ $ |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note L: Commitments and Contingencies Litigation We are involved from time to time in various legal proceedings arising in the ordinary course of our business, including primarily commercial, product liability, employment and intellectual property claims. In accordance with GAAP, we record a liability in our Consolidated Financial Statements with respect to any of these matters when it is both probable that a liability has been incurred and the amount of the liability can be reasonably estimated. With respect to any currently pending legal proceedings, we have not established an estimated range of reasonably possible additional losses either because we believe that we have valid defenses to claims asserted against us or the proceeding has not advanced to a stage of discovery that would enable us to establish an estimate. We currently do not expect the outcome of these matters to have a material effect on our consolidated results of operations, financial position or cash flows. Litigation, however, is inherently unpredictable, and it is possible that the ultimate outcome of one or more claims asserted against us could adversely impact our results of operations, financial position or cash flows. We expense legal costs as incurred. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note M: Subsequent Events On July 9, 2015, we announced the sale of our LPR business to TagMaster A.B. (TagMaster) located in Stockholm, Sweden, for the purchase price of $4.2 million in cash. As of July 9, 2015, the LPR business, including all products and solutions, transitioned to TagMaster. We have included a pro forma statement of operations as if the disposition occurred on April 1, 2015. The following unaudited pro forma statement of operations gives effect to the disposition of the Image Sensing Systems LPR business segment and any associated transaction costs incurred in the second quarter as if the disposition occurred on April 1, 2015. The pro forma adjustments, described in the related notes, are based on the best available information and certain assumptions that ISS management believes are reasonable. The unaudited consolidated pro forma statement of operations is presented for illustrative purposes only and does not purport to be indicative of the operating results that would have occurred if the transaction described above had occurred as presented in such statement. For example, this financial information does not reflect any potential earnings or other impacts from the use of the proceeds from the disposition or cost reductions previously allocated corporate costs and potential subsequent restructuring charges. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Revenue Recognition | Revenue Recognition We recognize revenue on a sales arrangement when it is realized or realizable and earned, which occurs when all of the following criteria have been met: persuasive evidence of an arrangement exists; delivery and title transfer have occurred or services have been rendered; the sales price is fixed and determinable; collectability is reasonably assured; and all significant obligations to the customer have been fulfilled. Certain sales may contain multiple elements for revenue recognition purposes. We consider each deliverable that provides value to the customer on a standalone basis as a separable element. Separable elements in these arrangements may include the hardware, software, installation services, training and support. We initially allocate consideration to each separable element using the relative selling price method. Selling prices are determined by us based on either vendor-specific objective evidence (VSOE) (the actual selling prices of similar products and services sold on a standalone basis) or, in the absence of VSOE, our best estimate of the selling price. Factors considered by us in determining estimated selling prices for applicable elements generally include overall economic conditions, customer demand, costs incurred by us to provide the deliverable, as well as our historical pricing practices. Under these arrangements, revenue associated with each delivered element is recognized in an amount equal to the lesser of the consideration initially allocated to the delivered element or the amount for which payment is not deemed contingent upon future delivery of other elements in the arrangement. Under arrangements where special acceptance protocols exist, installation services and training may not be considered separable. Under those circumstances, revenue for the entire arrangement is recognized upon the completion of installation, training and fulfillment of any other significant obligations specific to the terms of the arrangement. Arrangements that do not contain any separable elements are typically recognized when the products are shipped and title has transferred to the customer. Revenue from arrangements for services such as maintenance, repair, consulting and technical support are recognized either as the service is performed or ratably over the defined contractual period for service maintenance contracts. Econolite Control Products, Inc. (Econolite) is our licensee that sells certain of our products in the United States, Mexico, Canada and the Caribbean. The royalty of approximately 50% of the gross profit on licensed products is recognized when the products are shipped or delivered by Econolite to its customers. We record provisions against sales revenue for estimated returns and allowances in the period when the related revenue is recorded based on historical sales returns and changes in end user demand. Revenue is recorded net of taxes collected from customers that are remitted to governmental authorities, with the collected taxes recorded as current liabilities until remitted to the relevant government authority. |
Inventories | Inventories Inventories are primarily electronic components and finished goods and are valued at the lower of cost or market on the first-in, first-out accounting method. |
Income Taxes | Income Taxes We record a tax provision for the anticipated tax consequences of the reported results of operations. Deferred tax assets and liabilities are measured using the currently enacted tax rates that apply to taxable income in effect for the years in which those deferred tax assets and liabilities are expected to be realized or settled. We record a valuation allowance to reduce deferred tax assets to the amount that is believed more likely than not to be realized. We believe it is more likely than not that forecasted income, including income that may be generated as a result of certain tax planning strategies, together with the tax effects of the deferred tax liabilities, will be sufficient to fully recover the remaining net realizable value of deferred tax assets. In the event that all or part of the net deferred tax assets are determined not to be realizable in the future, an adjustment to the valuation allowance would be charged to earnings in the period such determination is made. In addition, the calculation of tax liabilities involves significant judgment in estimating the impact of uncertainties in the application of complex tax laws. Resolution of these uncertainties in a manner inconsistent with managements expectations could have a material impact on our financial condition and operating results. We recognize penalties and interest expense related to unrecognized tax benefits in income tax expense. |
Intangible Assets | Intangible Assets Intangible assets with finite lives are amortized on a straight-line basis over the expected period to be benefited by future cash flows and reviewed for impairment. At both June 30, 2015 and December 31, 2014, we determined there was no impairment of intangible assets. At both June 30, 2015 and December 31, 2014, there were no indefinite-lived intangible assets. We capitalize certain software development costs related to software to be sold, leased, or otherwise marketed. Capitalized software development costs include purchased materials and services and other costs associated with the development of new products and services. Software development costs are expensed as incurred until technological feasibility has been established, at which time future costs incurred are capitalized until the product is available for general release to the public. A certain amount of judgment and estimation is required to assess when technological feasibility is established, as well as the ongoing assessment of the recoverability of capitalized costs. In evaluating the recoverability of capitalized software costs, the Company compares expected product performance, utilizing forecasted revenue amounts, to the total costs incurred to date and estimates of additional costs to be incurred. If revised forecasted product revenue is less than, and/or revised forecasted costs are greater than, the previously forecasted amounts, the net realizable value may be lower than previously estimated, which could result in the recognition of an impairment charge in the period in which such a determination is made. |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule Of Inventory | Inventories consisted of the following (in thousands): June 30, December 31, 2015 2014 Components $ 1,742 $ 1,760 Finished goods 462 474 $ 2,204 $ 2,234 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule Of Intangible Assets | Intangible assets consisted of the following (dollars in thousands): June 30, 2015 Weighted Gross Net Average Carrying Accumulated Carrying Useful Life Amount Amortization Value (in Years) Developed technology $ 8,121 (6,219 ) $ 1,902 2.2 Trade names 3,267 (2,495 ) 772 3.0 Other intangible assets 1,796 (1,242 ) 554 1.7 Total $ 13,184 $ (9,956 ) $ 3,228 2.2 December 31, 2014 Weighted Gross Net Average Carrying Accumulated Carrying Useful Life Amount Amortization Value (in Years) Developed technology $ 8,114 $ (5,666 ) $ 2,448 2.6 Trade names 3,267 (2,367 ) 900 3.5 Other intangible assets 1,777 (1,138 ) 639 2.2 Total $ 13,158 $ (9,171 ) $ 3,987 2.7 |
Warranties (Tables)
Warranties (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Product Warranties Disclosures [Abstract] | |
Schedule Of Warranty Liability And Related Activity | Warranty liability and related activity consisted of the following (in thousands): Six-Month Periods Ended June 30, 2015 2014 Beginning balance $ 966 $ 934 Warranty provisions 59 53 Warranty claims (103 ) (173 ) Adjustments to preexisting warranties (151 ) (81 ) Ending balance $ 771 $ 733 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary Of Stock Option Activity | A summary of the option activity for the first six months of 2015 is as follows: Weighted Weighted Average Average Exercise Remaining Aggregate Number of Price per Contractual Intrinsic Shares Share Term (in years) Value Options outstanding at December 31, 2014 354,000 $ 6.30 7.0 $ Granted 50,000 $ 2.73 5.0 $ Exercised $ $ Expired (3,000 ) $ 9.22 $ Forfeited (54,000 ) $ 5.57 $ Options outstanding at June 30, 2015 347,000 $ 5.88 6.9 $ 37,000 Options exercisable at June 30, 2015 155,750 $ 7.23 5.2 $ |
Loss per Common Share (Tables)
Loss per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Net loss per share: | |
Schedule of Reconciliation of Earnings Per Share | The potentially dilutive effect of common shares subject to certain outstanding stock options is determined based on net loss. A reconciliation of these amounts is as follows (dollar amounts in thousands except per share data): Three-Month Periods Ended Six-Month Periods Ended 2015 2014 2015 2014 Numerator: Net loss $ (742 ) $ (1,533 ) $ (1,909 ) $ (5,290 ) Denominator: Weighted average common shares outstanding 5,008 4,980 5,003 4,978 Dilutive potential common shares Shares used in diluted net loss per common share calculations 5,008 4,980 5,003 4,978 Basic net loss per common share $ (0.15 ) $ (0.31 ) $ (0.38 ) $ (1.06 ) Diluted net loss per common share $ (0.15 ) $ (0.31 ) $ (0.38 ) $ (1.06 ) |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Financial Information By Reportable Segment | The following tables set forth selected unaudited financial information for each of our reportable segments (in thousands): Three Months Ended June 30, Intersection Highway LPR Total 2015 2014 2015 2014 2015 2014 2015 2014 Revenue $ 3,189 $ 3,625 $ 1,218 $ 1,094 $ 774 $ 1,219 $ 5,181 $ 5,938 Gross profit 2,768 3,242 783 488 653 533 4,204 4,263 Amortization of intangible assets 122 121 260 272 382 393 Intangible assets 210 698 3,018 5,065 3,228 5,763 Six Months Ended June 30, Intersection Highway LPR Total 2015 2014 2015 2014 2015 2014 2015 2014 Revenue $ 5,350 $ 5,808 $ 2,284 $ 2,169 $ 1,886 $ 2,283 $ 9,520 $ 10,260 Gross profit 4,828 5,347 1,363 1,166 1,333 867 7,524 7,380 Amortization of intangible assets 244 244 519 538 763 782 Intangible assets 210 698 3,018 5,065 3,228 5,763 |
Restructuring (Tables)
Restructuring (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Restructuring Charges [Abstract] | |
Summary Of Restructuring Activity | The following table shows the restructuring activity for 2015 (in thousands): Facility Costs Termination and Contract Benefits Termination Total Balance at January 1, 2015 $ 190 $ 26 $ 216 Charges 119 119 Payments/settlements (295 ) (8 ) (303 ) Balance at March 31, 2015 $ 14 $ 18 $ 32 Payments/settlements (14 ) (18 ) (32 ) Balance at June 30, 2015 $ $ $ The following table shows the restructuring activity for 2014 (in thousands): Facility Costs Termination and Contract Benefits Termination Total Balance at January 1, 2014 $ $ $ Charges 60 400 460 Payments/settlements (45 ) (177 ) (222 ) Balance at March 31, 2014 $ 15 $ 223 $ 238 Payments/settlements (15 ) (223 ) (238 ) Balance at June 30, 2014 $ $ $ |
Basis of Presentation (Details
Basis of Presentation (Details Narrative) | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Royalty percentage of gross profit on licensed products | 50.00% |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Components | $ 1,742 | $ 1,760 |
Finished goods | 462 | 474 |
Total | $ 2,204 | $ 2,234 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 13,184 | $ 13,158 | |
Accumulated Amortization | (9,956) | (9,171) | |
Net Carrying Value | $ 3,228 | 3,987 | |
Weighted Average Useful Life (in Years) | 2 years 2 months 12 days | ||
Developed Technology Rights [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 8,114 | $ 8,121 | |
Accumulated Amortization | (5,666) | (6,219) | |
Net Carrying Value | $ 2,448 | 1,902 | |
Weighted Average Useful Life (in Years) | 2 years 2 months 12 days | 2 years 7 months 6 days | |
Trade Names [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 3,267 | 3,267 | |
Accumulated Amortization | (2,367) | (2,495) | |
Net Carrying Value | $ 900 | 772 | |
Weighted Average Useful Life (in Years) | 3 years | 3 years 6 months | |
Other Intangible Assets [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 1,777 | 1,796 | |
Accumulated Amortization | (1,138) | (1,242) | |
Net Carrying Value | $ 639 | $ 554 | |
Weighted Average Useful Life (in Years) | 1 year 8 months 12 days | 2 years 2 months 12 days |
Credit Facilities (Details Narr
Credit Facilities (Details Narrative) - Alliance Bank [Member] - Revolving Credit Facility [Member] - USD ($) $ in Thousands | May. 12, 2014 | Jun. 30, 2015 |
Maxiumum borrowing line of credit capacity | $ 5,000 | |
Interest rate | 3.95% | |
Description of collateral | Any advances are secured by the Companys inventories, accounts receivable, cash, marketable securities, and equipment. | |
Expiration | Apr. 1, 2016 |
Warranties (Details)
Warranties (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Product Warranties Disclosures [Abstract] | ||
Beginning balance | $ 966 | $ 934 |
Warranty provisions | 59 | 53 |
Warranty claims | (103) | (173) |
Adjustments to preexisting warranties | (151) | (81) |
Ending balance | $ 771 | $ 733 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Stock-based compensation expense | $ 76 | $ 99 | $ 151 | $ 186 |
Total unrecognized compensation cost related to non-vested stock options | 398 | $ 398 | ||
Weighted average period over which compensation cost is expected to be recognized | 2 years 3 months 19 days | |||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 7,860 | 17,700 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 3.18 | $ 2.82 | ||
Options outstanding, aggregate intrinsic value | $ 37,000 | $ 37,000 | ||
Options exercisable, weighted average remaining contractual term | 5 years 2 months 12 days | |||
Number of shares granted | 50,000 | |||
Shares available for grant | 392,140 | 392,140 | ||
Maximum [Member] | ||||
Stock option awards, vesting term | 5 years | |||
Percentage of vesting shares | 100.00% | |||
Minimum [Member] | ||||
Stock option awards, vesting term | 3 years | |||
Percentage of vesting shares | 90.00% |
Stock-Based Compensation (Det35
Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2015 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Number of Shares, outstanding - beginning of year | 354,000 | 354,000 | |
Number of Shares, Granted | 50,000 | ||
Number of Shares, Exercised | |||
Number of Shares, Expired | (3,000) | ||
Number of Shares, Forfeited | (54,000) | ||
Number of Shares, outstanding - end of period | 347,000 | ||
Number of Shares, exercisable - end of period | 155,750 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||
Weighted Average Exercise Price per Share, outstanding - beginning of year | [1] | $ 6.30 | $ 6.30 |
Weighted Average Exercise Price per Share, Granted | 2.73 | ||
Weighted Average Exercise Price per Share, expired | 9.22 | ||
Weighted Average Exercise Price per Share, Forfeited | 5.57 | ||
Weighted Average Exercise Price per Share, outstanding - end of period | [1] | 5.88 | |
Weighted Average Exercise Price per Share, exercisable - end of period | [1] | $ 7.23 | |
Options outstanding, weighted average remaining contractual term | 6 years 10 months 25 days | 7 years | |
Granted, weighted average remaining contractual term | 5 years | ||
Options exercisable, weighted average remaining contractual term | 5 years 2 months 12 days | ||
Outstanding Intrinsic Value | $ 37,000 | ||
[1] | Weighted Average Exercise Price |
Loss per Common Share (Details
Loss per Common Share (Details Narrative) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Net loss per share: | ||||
Shares excluded from diluted weighted shares outstanding | 351,000 | 343,000 | 557,000 | 337,000 |
Loss per Common Share (Details)
Loss per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Numerator: | ||||
Net loss | $ (742) | $ (1,533) | $ (1,909) | $ (5,290) |
Denominator: | ||||
Weighted average common shares outstanding | 5,008,000 | 4,980,000 | 5,003,000 | 4,978,000 |
Shares used in diluted net loss per common share calculations | 5,008,000 | 4,980,000 | 5,003,000 | 4,978,000 |
Basic net loss per common share | $ (0.15) | $ (0.31) | $ (0.38) | $ (1.06) |
Diluted net loss per common share | $ (0.15) | $ (0.31) | $ (0.38) | $ (1.06) |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 5,181 | $ 5,938 | $ 9,520 | $ 10,260 |
Gross profit | 4,204 | 4,263 | 7,524 | 7,380 |
Amortization of intangible assets | 382 | 393 | 763 | 782 |
Intangible assets, net | 3,228 | 5,763 | 3,228 | 5,763 |
Intersection [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 3,189 | 3,625 | 5,350 | 5,808 |
Gross profit | $ 2,768 | $ 3,242 | $ 4,828 | $ 5,347 |
Amortization of intangible assets | ||||
Highway [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 1,218 | $ 1,094 | $ 2,284 | $ 2,169 |
Gross profit | 783 | 488 | 1,363 | 1,166 |
Amortization of intangible assets | 122 | 121 | 244 | 244 |
Intangible assets, net | 210 | 698 | 210 | 698 |
LPR [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 774 | 1,219 | 1,886 | 2,283 |
Gross profit | 653 | 533 | 1,333 | 867 |
Amortization of intangible assets | 260 | 272 | 519 | 538 |
Intangible assets, net | $ 3,018 | $ 5,065 | $ 3,018 | $ 5,065 |
Restructuring (Details)
Restructuring (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Restructuring Reserve [Roll Forward] | ||||||
Balance at beginning of period | $ 32 | $ 216 | $ 238 | $ 216 | ||
Charges | 119 | $ 460 | 119 | $ 460 | ||
Payments/Settlements | $ (32) | (303) | (238) | (222) | ||
Balance at end of period | 32 | 238 | ||||
Termination Benefits [Member] | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Balance at beginning of period | 14 | 190 | 15 | 190 | ||
Charges | 119 | 60 | ||||
Payments/Settlements | (14) | (295) | (15) | (45) | ||
Balance at end of period | 14 | 15 | ||||
Facility Costs And Contract Termination [Member] | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Balance at beginning of period | 18 | $ 26 | 223 | $ 26 | ||
Charges | 400 | |||||
Payments/Settlements | $ (18) | $ (8) | $ (223) | (177) | ||
Balance at end of period | $ 18 | $ 223 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) $ in Thousands | Jul. 09, 2015USD ($) |
Subsequent Event [Member] | |
Sale of LPR business | $ 4,200 |