Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 29, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | IMAGE SENSING SYSTEMS INC | ||
Entity Central Index Key | 943,034 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 15,672,088 | ||
Entity Common Stock, Shares Outstanding | 5,028,000 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,015 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 2,648 | $ 2,656 |
Accounts receivable, net of allowance for doubtful accounts of $138 and $311, respectively | 3,063 | 2,534 |
Inventories | 648 | 825 |
Prepaid expenses and other current assets | 445 | 660 |
Total current assets | 6,804 | 6,675 |
Property and equipment: | ||
Furniture and fixtures | 491 | 449 |
Leasehold improvements | 426 | 406 |
Equipment | 3,397 | 3,443 |
Property and equipment, gross | 4,314 | 4,298 |
Accumulated depreciation | 3,796 | 3,601 |
Property and equipment, net | 518 | 697 |
Intangible assets, net | 1,210 | 454 |
Deferred income taxes | 19 | 62 |
Discontinued operations assets | 420 | 7,002 |
TOTAL ASSETS | 8,971 | 14,890 |
Current liabilities: | ||
Accounts payable | 1,519 | 2,451 |
Warranty | 760 | 824 |
Accrued compensation | 722 | 517 |
Other current liabilities | $ 573 | 585 |
Accrued restructuring | 216 | |
Total current liabilities | $ 3,574 | 4,593 |
Deferred income taxes | $ 165 | |
Other long-term liabilities | ||
Discontinued operations liabilities | $ 1,812 | |
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, 5,028,000 and 4,995,963 issued and outstanding, respectively | $ 49 | $ 49 |
Additional paid-in capital | 23,826 | 23,547 |
Accumulated other comprehensive loss | (258) | (158) |
Accumulated deficit | (18,220) | (15,118) |
Total shareholders' equity | 5,397 | 8,320 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 8,971 | $ 14,890 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 138 | $ 311 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 5,028,000 | 4,995,963 |
Common stock, shares outstanding | 5,028,000 | 4,995,963 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenue: | |||
Product sales | $ 6,729 | $ 7,896 | $ 8,244 |
Royalties | 8,486 | 10,247 | 11,598 |
Revenue, Net | 15,215 | 18,143 | 19,842 |
Cost of revenue: | |||
Product sales | 3,477 | 4,583 | 6,421 |
Total cost of revenue | 3,477 | 4,583 | 6,421 |
Gross profit | 11,738 | 13,560 | 13,421 |
Operating expenses: | |||
Selling, marketing and product support | 3,216 | 5,093 | 8,370 |
General and administrative | 4,048 | 4,299 | 4,571 |
Research and development | 3,520 | 4,862 | 3,710 |
Amortization of intangible assets | 455 | 488 | $ 488 |
Restructuring | $ 119 | 770 | |
Investigation matter | 152 | $ 3,723 | |
Impairment of investment | 150 | ||
Total operating expenses | $ 11,358 | 15,814 | $ 20,862 |
Operating income (loss) from continuing operations | 380 | (2,254) | (7,441) |
Other, net | 21 | 65 | 6 |
Income (loss) from continuing operations before income taxes | 401 | (2,189) | (7,435) |
Income tax expense (benefit) | 18 | (154) | 3,995 |
Net income from continuing operations | 383 | (2,035) | (11,430) |
Net loss from discontinued operations, net of tax (including 2015 loss on disposal of $1,081) | (3,485) | (7,668) | (4,471) |
Net loss | $ (3,102) | $ (9,703) | $ (15,901) |
Basic | |||
Continuing operations (in dollars per share) | $ .08 | $ (.41) | $ (2.31) |
Discontinued operations (in dollars per share) | (.70) | (1.54) | (0.90) |
Net basic earnings per share (in dollars per share) | (.62) | (1.95) | (3.21) |
Diluted | |||
Continuing operations (in dollars per share) | .08 | (.41) | (2.31) |
Discontinued operations (in dollars per share) | (.69) | (1.54) | (0.90) |
Net diluted earnings per share (in dollars per share) | $ (0.61) | $ (1.95) | $ (3.21) |
Weighted average number of common shares outstanding: | |||
Basic (in shares) | 5,011 | 4,983 | 4,955 |
Diluted (in shares) | 5,019 | 4,983 | 4,955 |
CONSOLIDATED STATEMENTS OF OPE5
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Income Statement [Abstract] | |
Loss on disposal | $ 1,081 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (3,102) | $ (9,703) | $ (15,901) |
Other comprehensive income (loss): | |||
Foreign currency translation adjustment | (100) | (762) | 214 |
Comprehensive loss | $ (3,202) | $ (10,465) | $ (15,687) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOW - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating activities: | |||
Net income from continuing operations | $ 383 | $ (2,035) | $ (11,430) |
Net loss from discontinued operations | (3,485) | (7,668) | (4,471) |
Net loss | (3,102) | (9,703) | (15,901) |
Adjustments to reconcile net loss to net cash provided by (used for) operating activities: | |||
Depreciation | 298 | 413 | 530 |
Amortization | 455 | 488 | 488 |
Stock-based compensation | $ 279 | 271 | $ 213 |
Impairment | 150 | ||
Deferred income tax expense | $ 4 | $ 4,085 | |
Loss on disposal of assets | (157) | 41 | |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | (529) | 1,194 | $ 2,055 |
Inventories | 177 | 126 | 1,709 |
Prepaid expenses and other current assets | 258 | 643 | 298 |
Accounts payable | (932) | 1,075 | (27) |
Accrued expenses and other liabilities | (92) | (352) | 755 |
Net cash used for continuing operating activities | (3,341) | (5,654) | (5,795) |
Net cash provided by discontinuing operating activities | 1,557 | 3,075 | 278 |
Net cash used for operating activities | (1,784) | $ (2,579) | $ (5,517) |
Investing activities: | |||
Capitalized software development costs | $ (1,210) | ||
Sales and maturities of marketable securities | $ 2,639 | $ 7,686 | |
Purchases of marketable securities | (5,507) | ||
Purchases of property and equipment | $ (150) | $ (298) | (300) |
Proceeds (purchases) of other investments | 150 | (300) | |
Net cash provided by (used for) continuing investing activities | $ (1,360) | 2,491 | 1,579 |
Net cash provided by (used for) discontinued investing activities | 3,253 | (197) | (789) |
Net cash provided by investing activities | $ 1,893 | $ 2,294 | 790 |
Financing activities: | |||
Proceeds from exercise of stock options | 9 | ||
Net cash provided by continuing financing activities | 9 | ||
Effect of exchange rate changes on cash | $ (117) | $ (623) | (52) |
Decrease in cash and cash equivalents | (8) | (908) | (4,770) |
Cash and cash equivalents at beginning of period | 2,656 | 3,564 | 8,334 |
Cash and cash equivalents at end of period | $ 2,648 | $ 2,656 | $ 3,564 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings accumualted deficit [Member] | Total |
Balance at Dec. 31, 2012 | $ 49 | $ 23,055 | $ 390 | $ 10,486 | $ 33,980 |
Balance, shares at Dec. 31, 2012 | 4,966,619 | ||||
Stock awards issued, value | 75 | 75 | |||
Stock awards issued, shares | 13,395 | ||||
Common stock issued for options exercised | 8 | $ 8 | |||
Common stock issued for options exercised, shares | 2,333 | 2,333 | |||
Stock-based compensation | 138 | $ 138 | |||
Acquisition-related shares surrendered, shares | (7,500) | ||||
Comprehensive loss | |||||
Foreign currency translation adjustment | 214 | 214 | |||
Net loss | (15,901) | (15,901) | |||
Total Comprehensive loss | (15,687) | ||||
Balance at Dec. 31, 2013 | $ 49 | 23,276 | 604 | (5,415) | 18,514 |
Balance, shares at Dec. 31, 2013 | 4,974,847 | ||||
Stock awards issued, value | 91 | 91 | |||
Stock awards issued, shares | 21,116 | ||||
Stock-based compensation | 180 | 180 | |||
Comprehensive loss | |||||
Foreign currency translation adjustment | (762) | (762) | |||
Net loss | (9,703) | (9,703) | |||
Total Comprehensive loss | (10,465) | ||||
Balance at Dec. 31, 2014 | $ 49 | 23,547 | (158) | (15,118) | 8,320 |
Balance, shares at Dec. 31, 2014 | 4,995,963 | ||||
Stock awards issued, value | 106 | 106 | |||
Stock awards issued, shares | 32,037 | ||||
Stock-based compensation | 173 | 173 | |||
Comprehensive loss | |||||
Foreign currency translation adjustment | (100) | (100) | |||
Net loss | (3,102) | (3,102) | |||
Total Comprehensive loss | (3,202) | ||||
Balance at Dec. 31, 2015 | $ 49 | $ 23,826 | $ (258) | $ (18,220) | $ 5,397 |
Balance, shares at Dec. 31, 2015 | 5,028,000 |
DESCRIPTION OF BUSINESS AND SIG
DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES | 1. DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES DESCRIPTION OF BUSINESS 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, safety, 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 Company previously conducted its operations through three businesses consisting of 1) Intersection, 2) Highway, and 3) LPR. As further described in note 2, on July 9, 2015, the Company completed the sale of its LPR segment. As a result, effective July 9, 2015, the LPR business qualified for discontinued operations presentation in the Companys condensed consolidated financial statements. Accordingly, financial results for the twelve months ended December 31, 2015 have been reported on this basis. Previously reported results for comparable periods in 2014 and 2013 have also been restated to reflect this reclassification. As a result, all amounts presented in the accompanying consolidated financial statements and notes reflect the financial results and financial position of the Companys continuing intersection and highway businesses, other than consolidated amounts reflecting operating results and balances for both the continuing and discontinued operations. PRINCIPLES OF CONSOLIDATION The Consolidated Financial Statements include the accounts of Image Sensing Systems, Inc. and its wholly-owned subsidiaries: Image Sensing Systems HK Limited (ISS HK) located in Hong Kong; Image Sensing Systems (Shenzhen) Limited (ISS WOFE) located in China; Image Sensing Systems Holdings Limited (ISS Holdings), Image Sensing Systems Europe Limited (ISS Europe), Image Sensing Systems EMEA Limited (ISS UK) located in the United Kingdom; Image Sensing Systems Europe Limited SP.Z.O.O., (ISS Poland) located in Poland; Image Sensing Systems Spain SLU (ISS Spain) located in Spain; Image Sensing Systems Germany, GmbH (ISS Germany) located in Germany; and ISS Image Sensing Systems Canada Limited (ISS Canada) located in Canada. All significant inter-company transactions and balances have been eliminated in consolidation. 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, 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. SHIPPING AND HANDLING Freight revenue billed to customers is reported within revenue on the Consolidated Statements of Operations, and expenses incurred for shipping products to customers are reported within cost of revenue on the Consolidated Statements of Operations. CASH AND CASH EQUIVALENTS We consider all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. Cash equivalents, both inside and outside the United States, are invested in money market funds and bank deposits in local currency denominations. Cash located in foreign banks was $700,000 and $2.0 million at December 31, 2015 and 2014, respectively. We hold our cash and cash equivalents with financial institutions and, at times, the amounts of our balances may be in excess of insurance limits. MARKETABLE SECURITIES We classify marketable debt securities as available-for-sale investments and these securities are stated at their estimated fair value. The value of these securities is subject to market and credit volatility during the period these investments are held. ACCOUNTS RECEIVABLE We grant credit to customers in the normal course of business and generally do not require collateral from domestic customers. When deemed appropriate, receivables from customers outside the United States are supported by letters of credit from financial institutions. Management performs on-going credit evaluations of customers. The allowance for doubtful accounts is based on managements assessment of the collectability of specific customer accounts and includes consideration of the credit worthiness and financial condition of those specific customers. We record an allowance to reduce receivables to the amount that is reasonably believed to be collectible and consider factors such as the financial condition of the customer and the aging of the receivables. If there is a deterioration of a customers financial condition, if we become aware of additional information related to the credit worthiness of a customer, or if future actual default rates on trade receivables in general differ from those currently anticipated, we may have to adjust our allowance for doubtful accounts, which would affect earnings in the period the adjustments were made. INVENTORIES Inventories are primarily electronic components and finished goods and are valued at the lower of cost or market determined under the first-in, first-out accounting method. PROPERTY AND EQUIPMENT Property and equipment is stated at cost. Additions, replacements, and improvements are capitalized at cost, while maintenance and repairs are charged to operations as incurred. Depreciation is recorded using the straight-line method over the estimated useful lives of the assets and by accelerated methods for income tax purposes. Leasehold improvements are depreciated over the shorter of the estimated useful lives of the assets or the contractual term of the lease, with consideration of lease renewal options if renewal appears probable. Depreciation is recorded over a three- to seven-year period for financial reporting purposes. 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. If 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 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. Based on our product development process, technological feasibility is generally established once product and detailed program designs have been completed, uncertainties related to high-risk development issues have been resolved through coding and testing, and we have established that the necessary skills, hardware, and software technology are available for production of the product. Once a software product is available for general release to the public, capitalized development costs associated with that product will begin to be amortized to cost of sales over the products estimated economic life, using the greater of straight-line or a method that results in cost recognition in future periods that is consistent with the anticipated timing of product revenue recognition. Capitalized software development costs are subject to an ongoing assessment of recoverability, which is impacted by estimates and assumptions of future revenues and expenses for these software products, as well as other factors such as changes in product technologies. Any portion of unamortized capitalized software development costs that are determined to be in excess of net realizable value have been expensed in the period in which such a determination is made. We reached technological feasibility for certain software products and, as a result, capitalized $1.2 million of software development costs during the year ended December 31, 2015. 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 December 31, 2015 and 2014, there were no indefinite-lived intangible assets. IMPAIRMENT OF LONG-LIVED ASSETS We review the carrying value of long-lived assets or asset groups, such as property and equipment and intangibles subject to amortization, when events or changes in circumstances such as asset utilization, physical change, legal factors, or other matters indicate that the carrying value may not be recoverable. When this review indicates the carrying value of an asset or asset group exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset or asset group, we recognize an asset impairment charge against operations. The amount of the impairment loss recorded is the amount by which the carrying value of the impaired asset or asset group exceeds its fair value. No such impairment losses were recorded during the years ended December 31, 2015, 2014 or 2013. RESEARCH AND DEVELOPMENT Research and development costs associated with new products are charged to operations in the period incurred. WARRANTIES We generally provide a standard two to five year warranty on product sales. We record estimated warranty costs at the time of sale and accrue for specific items at the time that their existence is known and the amounts are determinable. We estimate warranty costs using standard quantitative measures based on historical warranty claim experience and an evaluation of specific customer warranty issues. In addition, warranty provisions are also recognized for certain nonrecurring product claims that are individually significant. FOREIGN CURRENCY The financial position and results of operations of our foreign subsidiaries are measured using local currency as the functional currency. Assets and liabilities are translated using fiscal period-end exchange rates, and statements of operations are translated using average exchange rates applicable to each period, with the resulting translation adjustments recorded as a separate component of shareholders equity under Accumulated other comprehensive loss. Gains and losses from foreign currency transactions are recognized in the Consolidated Statements of Operations. NET LOSS PER SHARE Basic loss per share excludes dilution and is computed by dividing net loss attributable to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted loss per share includes potentially dilutive common shares consisting of stock options, restricted stock and warrants using the treasury stock method. Under the treasury stock method, shares associated with certain 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 282,750, 354,000 and 348,000 weighted common shares have been excluded from the diluted weighted shares outstanding calculation for the years ended December 31, 2015, 2014 and 2013, respectively, because the exercise prices were greater than the average market price of the common shares during the period and were excluded from the calculation of diluted net income per share. USE OF ESTIMATES The preparation of financial statements in accordance with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities as of the date of the financial statements, and reported amounts of revenue and expense during the reporting period. Predicting future events is inherently an imprecise activity and, as such, requires the use of judgment. Ultimate results could differ from those estimates. Changes in these estimates will be reflected in the financial statements in future periods. STOCK-BASED COMPENSATION We measure the cost of employee services received in exchange for the award of equity instruments based on the fair value of the award at the date of grant and recognize the cost over the period during which an employee is required to provide services in exchange for the award. Stock options are granted at exercise prices equal to the closing market price of our stock on the day before the date of grant. For purposes of determining estimated fair value of stock-based payment awards, we utilize a Black-Scholes option pricing model, which requires the input of certain assumptions requiring management judgment. Because our employee stock option awards have characteristics significantly different from those of traded options, and because changes in the input assumptions can materially affect fair value estimates, existing models may not provide a reliable single measure of the fair value of employee stock options. Management will continue to assess the assumptions and methodologies used to calculate estimated fair value of stock-based compensation. Circumstances may change and additional data may become available over time that could result in changes to these assumptions and methodologies and thereby materially impact the fair value determination of future grants of stock-based payment awards. If factors change and we employ different assumptions in future periods, the compensation expense recorded may differ significantly from the stock-based compensation expense recorded in the current period. RECENT ACCOUNTING PRONOUNCEMENTS In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842). ASU 2016-02 provides new guidance on how an entity should account for leases and recognize associated lease assets and liabilities. This new guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018, and early adoption is permitted. The new standard must be adopted using a modified retrospective transition, and provides for certain practical expedients. In addition, the transition will require application of the new guidance at the beginning of the earliest comparative period presented. We are currently determining our implementation approach and assessing the impact of ASU 2016-02 on the consolidated financial statements. In November 2015, the FASB issued ASU No. 2015-17, "Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes, which simplifies the presentation of deferred income taxes. ASU 2015-17 requires that deferred tax assets and liabilities be classified as noncurrent in a classified statement of financial position. ASU 2015-17 is effective for financial statements issued for fiscal years beginning after December 15, 2016 (and interim periods within those fiscal years), with early adoption permitted. ASU 2015-17 may be either applied prospectively to all deferred tax assets and liabilities or retrospectively to all periods presented. We have elected to early adopt ASU 2015-17 prospectively in the fourth quarter of 2015. As a result, we have presented all deferred tax assets and liabilities as noncurrent on our consolidated balance sheet as of December 31, 2015, but have not reclassified current deferred tax assets and liabilities on our consolidated balance sheet as of December 31, 2014. There was no impact on our results of operations as a result of the adoption of ASU 2015-17. In May 2014, the FASB issued 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, the 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 this new revenue standard to annual reporting periods beginning after December 15, 2017. All other entities will apply this new revenue standard to annual reporting periods beginning after December 15, 2018. Additionally, the 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 ASU 2014-09 standard to all interim reporting periods within the year of adoption. |
Divestiture of Automatic Licens
Divestiture of Automatic License Plate Recognition Business | 12 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestiture of Automatic License Plate Recognition Business | 2. Divestiture of Automatic License Plate Recognition Business On July 9, 2015, the Company entered into a share and asset sales purchase agreement (the SAPA) with TagMaster AB (the Buyer). Under the terms of the SAPA, the Company and Image Sensing Systems EMEA Limited, a wholly-owned subsidiary of the Company (ISS EMEA), sold to the Buyer the entire issued share capital of Image Sensing Systems UK Limited, a wholly-owned subsidiary of ISS EMEA, as well as certain other assets owned by the Company primarily used or primarily held for use in connection with its license plate recognition (LPR) business. The Buyer also agreed to assume on the closing date certain agreements and liabilities relating to the LPR business and the acquired assets. Additionally, the Company and the Buyer entered into a transitional services agreement. Effective July 9, 2015, the LPR business qualified for discontinued operations presentation in the Companys consolidated financial statements. In accordance with Accounting Standards Codification (ASC) 205-20, the results of the discontinued LPR business have been presented as discontinued operations. As such, financial results for the 12 months ended December 31, 2015 have been reported on this basis. Previously reported results for comparable periods in 2014 and 2013 have also been restated to reflect this reclassification. The purchase price for the LPR business was $4.2 million, subject to certain customary closing adjustments based on the difference between estimated net asset value and final net asset value, of which $3.8 million has been paid to the Company. The remaining $420,000 was placed in an escrow account and will be available until July 9, 2016 to satisfy any indemnification obligations the Company may have under the SAPA. The $420,000 in escrow is classified as discontinued operations assets on the Companys Consolidated Balance Sheets as of December 31, 2015. In the third quarter of 2015, the Company recorded a loss on sale of the LPR business of $1.1 million, exclusive of the impact of transaction related expenses recorded through December 31, 2015. The operational results of the LPR business are presented in the Net loss from discontinued operations line item on the Consolidated Statements of Operations. Also included in this line item for the 12 months ended December 31, 2015 is the loss on sale of the LPR business and non-recurring expenses incurred by the Company as a result of the sale of the LPR business, including third party transaction specific costs. These non-recurring expenses amounted to $985,000 for the 12 months ended December 31, 2015. The loss on the sale of the LPR business had no current or prior year income tax expense impact. In accordance with ASC 205-20, no general corporate charges were allocated to the discontinued business. The assets and liabilities of the discontinued business are presented on the Consolidated Balance Sheets as assets and liabilities from discontinued operations. Other than consolidated amounts reflecting operating results and balances for both the continuing and discontinuing operations, all remaining amounts presented in the Consolidated Financial Statements and Notes to Consolidated Financial Statements reflect the financial results and financial position of the Companys continuing Autoscope Video and RTMS businesses. Revenue, operating loss, loss on sale of business, and net loss from discontinued operations were as follows (in thousands): Year Ended December 31, 2015 2014 2013 Net Revenue $ 1,409 $ 1,452 $ 2,980 Operating (loss) from discontinued operations (2,538 ) (7,688 ) (4,529 ) Loss on sale of discontinued operations (1,081 ) Income tax expense (benefit) (134 ) (20 ) (58 ) Net loss on discontinued operations, net of tax $ (3,485 ) $ (7,668 ) $ (4,471 ) The major classes of assets and liabilities from discontinued operations were as follows (in thousands): Year Ended 2015 2014 Accounts receivable, net $ $ 1,685 Inventories 1,409 Other current assets 420 209 Current assets from discontinued operations 420 3,303 Property and equipment, net: 167 Intangible assets, net 3,532 Non-current assets from discontinued operations 3,699 Trade accounts payable 864 Other current liabilities 857 Current liabilities from discontinued operations 1,721 Non-current liabilities from discontinued operations $ $ 91 |
FAIR VALUE MEASUREMENTS AND MAR
FAIR VALUE MEASUREMENTS AND MARKETABLE SECURITIES | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS AND MARKETABLE SECURITIES | 3. FAIR VALUE MEASUREMENTS AND MARKETABLE SECURITIES 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. Assets and Liabilities that are Measured at Fair Value on a Recurring Basis The fair value hierarchy requires the use of observable market data when available. In instances in which the inputs used to measure fair value fall into different levels of the fair value hierarchy, the fair value measurement has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular item to the fair value measurement in its entirety requires judgment, including the consideration of inputs specific to the asset or liability. Investments are comprised of high-grade municipal bonds, U.S. government securities and commercial paper and are classified as Level 1 or Level 2, depending on trading frequency and volume and our ability to obtain pricing information on an ongoing basis. As of December 31, 2015 and 2014, there were no marketable securities outstanding. Proceeds from maturities or sales of available-for-sale securities were $2.6 million and $7.7 million during the years ended December 31, 2014 and 2013, respectively. Realized gains and losses are determined using the specific identification method. Realized gains and losses related to sales of available-for-sale investments during the years ended December 31, 2014 and 2013 were immaterial and included in other income. 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. Periodically, these nonfinancial assets are tested for impairment by comparing their respective carrying values to the estimated fair value of the reporting unit or asset group in which they reside. 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 | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | 4. INVENTORIES Inventories consisted of $648,000 and $825,000 of finished goods as of December 31, 2015 and 2014, respectively. |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | 5. INTANGIBLE ASSETS Intangible assets consisted of the following (dollars in thousands): December 31, 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Value Weighted Average Useful Life (in Years) Developed technology $ 3,900 $ (3,900 ) $ Software development 1,210 1,210 10.0 $ 5,110 $ (3,900 ) $ 1,210 10.0 December 31, 2014 Gross Carrying Amount Accumulated Amortization Net Carrying Value Weighted Average Useful Life (in Years) Developed technology $ 3,900 $ (3,446 ) $ 454 1.0 |
CREDIT FACILITIES
CREDIT FACILITIES | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
CREDIT FACILITIES | 6. 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 2015 to April 1, 2016. At December 31, 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 the Credit Agreement effective on May 12, 2014 in connection with the revolving line of credit from Alliance Bank described above. |
WARRANTIES
WARRANTIES | 12 Months Ended |
Dec. 31, 2015 | |
Product Warranties Disclosures [Abstract] | |
WARRANTIES | 7. WARRANTIES Warranty liability and related activity consisted of the following (in thousands): Years ended December 31, 2015 2014 2013 Beginning balance $ 824 $ 771 $ 343 Warranty provisions 198 328 209 Warranty claims (293 ) (329 ) (283 ) Adjustments to preexisting warranties 31 54 502 Ending balance $ 760 $ 824 $ 771 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 8. INCOME TAXES The components of income (loss) before income taxes were as follows (in thousands): Years ended December 31, 2015 2014 2013 Income (loss) from continuing operations before income taxes and discontinued operations Domestic $ 1,057 $ 480 $ (6,275 ) Foreign (656 ) (2,669 ) (1,160 ) Total $ 401 $ (2,189 ) $ (7,435 ) The components of income tax expense (benefit) were as follows (in thousands): Years ended December 31, 2015 2014 2013 Current: Federal $ $ (158 ) $ (230 ) State 7 3 (7 ) Foreign 9 17 80 $ 16 $ (138 ) $ (157 ) Deferred: Federal $ $ $ 4,083 State 120 Foreign 2 (16 ) (51 ) 2 (16 ) 4,152 Total income tax expense (benefit) $ 18 $ (154 ) $ 3,995 A reconciliation from the federal statutory income tax provision to our effective tax expense (benefit) is as follows (in thousands): Years ended December 31, 2015 2014 2013 United States federal tax statutory rate $ 137 $ (766 ) $ (2,528 ) State taxes, net of federal benefit (6 ) (233 ) (36 ) Valuation allowances against deferred tax assets 637 769 6,657 Research and development tax credits (716 ) (374 ) (252 ) Foreign provision different than U.S. tax rate 104 483 148 Stock option expense 21 33 28 Adjustment of prior year tax credits and refunds (40 ) 102 (63 ) Uncertain tax positions (10 ) (8 ) Other (119 ) (158 ) 49 Total $ 18 $ (154 ) $ 3,995 A summary of the deferred tax assets and liabilities is as follows (in thousands): Years ended December 31, 2015 2014 Deferred tax assets: Accrued compensation and benefits $ 186 $ 141 Inventory reserves 27 217 Allowance for doubtful accounts 9 112 Warranty reserves 168 194 Intangible and other assets 3,027 3,476 Net operating loss carryforwards 6,898 5,620 Non-qualified stock option expense 114 77 Property, equipment and other 133 158 Research and development credit 1,710 913 Total deferred tax asset: 12,272 10,908 Less: valuation allowance (12,205 ) (10,950 ) Net deferred tax assets: 67 (42 ) Deferred tax liabilities: Prepaid expenses and other (48 ) (61 ) Total deferred tax liability: (48 ) (61 ) Total net deferred tax asset/(liability) $ 19 $ (103 ) As of December 31, 2015, the Company had sustained a significant loss. The net operation loss (NOL) carry forward in the United States, United Kingdom, Hong Kong, Canada and China is $14.1 million, $8.8 million, $1.3 million, $70,000 and $113,000, respectively. The Companys management believes that it is not more likely than not the net operating losses will be utilized. Accordingly, as of December 31, 2015, a full valuation allowance is provided, except Canadian NOL. In accordance with ASC 740-30, we have not recognized a deferred tax liability for the undistributed earnings of certain of our foreign operations because those subsidiaries have invested or will invest the undistributed earnings indefinitely. It is impractical for us to determine the amount of unrecognized deferred tax liabilities on these indefinitely reinvested earnings. Deferred taxes are recorded for earnings of foreign operations when we determine that such earnings are no longer indefinitely reinvested. We realize an income tax benefit from the exercise or early disposition of certain stock options. This benefit results in a decrease in current income taxes payable and an increase in additional paid-in capital. The Company has recognized no material uncertain tax positions as of December 31, 2015. The Company files income tax returns in the U.S federal jurisdiction, various state and foreign jurisdictions. With few exceptions, the Company is no longer subject to U.S federal or state and local income tax examinations by tax authorities for years before 2011. It is difficult to predict the final timing and resolution of any particular uncertain tax position. Based on the Companys assessment of many factors, including past experience and complex judgments about future events, the Company does not currently anticipate significant changes in its uncertain tax positions over the next 12 months. |
LICENSING
LICENSING | 12 Months Ended |
Dec. 31, 2015 | |
Licensing [Abstract] | |
LICENSING | 9. LICENSING We have licensed the exclusive right to manufacture and market the Autoscope video and RTMS radar (from July 24, 2012 to July 14, 2014) technology in the United States, Mexico, Canada and the Caribbean to Econolite, and we receive royalties from Econolite on sales of systems in those territories as well as in non-exclusive territories as allowed from time to time. We may terminate our agreement with Econolite if a minimum annual sales level is not met or if Econolite fails to make royalty payments as required by the agreement. The agreements term runs to 2031, unless terminated by either party upon three years notice. We recognized royalty income from this agreement of $8.5 million, $10.2 million and $11.6 million in 2015, 2014 and 2013, respectively. |
SIGNIFICANT CUSTOMERS AND CONCE
SIGNIFICANT CUSTOMERS AND CONCENTRATION OF CREDIT RISK | 12 Months Ended |
Dec. 31, 2015 | |
Significant Customers And Concentration Of Credit Risk [Abstract] | |
SIGNIFICANT CUSTOMERS AND CONCENTRATION OF CREDIT RISK | 10. SIGNIFICANT CUSTOMERS AND CONCENTRATION OF CREDIT RISK Royalty income from Econolite comprised 56%, 56% and 58% of revenue in the years ended December 31, 2015, 2014 and 2013, respectively. Accounts receivable from Econolite were $1.4 million and $1.5 million at December 31, 2015 and 2014, respectively. Major disruptions in the manufacturing and distribution of our products by Econolite or the inability of Econolite to make payments on its accounts receivable with us could have a material adverse effect on our business, financial condition and results of operations. Econolite was the only customer that comprised more than 10% of accounts receivable as of December 31, 2015. |
RETIREMENT SAVINGS PLANS
RETIREMENT SAVINGS PLANS | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
RETIREMENT SAVINGS PLANS | 11. RETIREMENT SAVINGS PLANS Substantially all of our employees in the United States are eligible to participate in a qualified defined contribution 401(k) plan. Participants may elect to have a specified portion of their salary contributed to the plan, and we may make discretionary contributions to the plan. ISS HK and ISS UK are obligated to contribute to certain employee pension plans. We made contributions totaling $84,000, $108,000 and $100,000 to the plans for 2015, 2014 and 2013, respectively. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
SHAREHOLDERS' EQUITY | 12. SHAREHOLDERS EQUITY Stock-Based Compensation We compensate officers, directors and key employees with stock-based compensation under stock 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 was operating profit. 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 years ended December 31, 2015, 2014 and 2013 was $279,000, $271,000 and $213,000, respectively. At December 31, 2015, a total of 377,803 shares were available for grant under these plans. The following table summarizes stock option activity for 2015, 2014 and 2013: 2015 2014 2013 Shares WAEP* Shares WAEP* Shares WAEP* Options outstanding at beginning of year 354,000 $ 6.30 339,750 $ 6.73 398,893 $ 7.95 Granted 50,000 $ 2.73 167,500 $ 4.92 86,000 $ 6.82 Exercised $ $ (2,333 ) $ 3.65 Expired (3,000 ) $ 9.22 $ (4,000 ) $ 9.00 Forfeited (93,250 ) $ 5.43 (153,250 ) $ 5.74 (138,810 ) $ 10.28 Options outstanding at end of year 307,750 $ 5.96 354,000 $ 6.30 339,750 $ 6.73 Options eligible for exercise at year-end 165,625 $ 7.20 174,000 $ 7.16 130,688 $ 7.71 *Weighted Average Exercise Price Options outstanding at December 31, 2015 had a weighted average remaining contractual term of 6.3 years and had an aggregate intrinsic value of $46,000. Options eligible for exercise at December 31, 2015 had a weighted average remaining contractual term of 4.7 years and had no aggregate intrinsic value. There were no stock options exercised during the fiscal years ended December 31, 2015 and 2014. The total intrinsic value of stock options exercised during the fiscal year ended December 31, 2013 was $4,000. The fair value of stock options granted under stock-based compensation programs has been estimated as of the date of each grant using the multiple option form of the Black-Scholes valuation model, based on the grant price and assumptions regarding the expected grant life, stock price volatility, dividends, and risk-free interest rates. Each vesting period of an option award is valued separately, with this value being recognized evenly over the vesting period. The weighted average per share grant date fair value of options to purchase 50,000, 167,500 and 86,000 shares granted for the years ended December 31, 2015, 2014 and 2013 was $1.53, $2.20 and $3.53, respectively. The weighted average assumptions used to determine the fair value of stock options granted during those fiscal years were as follows: 2015 2014 2013 Expected life (in years) 5.0 5.0 5.0 Risk-free interest rate 1.60 % 1.55 % 1.52 % Expected volatility 67 % 50 % 60 % Dividend yield 0 % 0 % 0 % The expected life represents the period that the stock option awards are expected to be outstanding and was determined based on historical and anticipated future exercise and expiration patterns. The risk-free interest rate used is based on the yield of constant maturity U.S. Treasury bonds on the grant date with a remaining term equal to the expected life of the grant. We estimate stock price volatility based on a historical weekly price observation. The dividend yield assumption is based on the annualized current dividend divided by the share price on the grant date. We have not historically paid any cash dividends and do not expect to do so in the foreseeable future. Other information pertaining to options for the years ended December 31, 2015, 2014 and 2013 is as follows: 2015 2014 2013 Stock-based compensation expense recognized within general and administrative expense on the consolidated statements of operations $ 279,000 $ 271,000 $ 213,000 Cash received from the exercise of options 8,500 Excess income tax benefits from exercise of stock options 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 December 31, 2015, there were stock awards issued for 8,285 shares with a weighted-average grant date fair value of $3.77. For the year ended December 31, 2015, there were stock awards issued for 32,037 shares with a weighted-average grant date fair value of $3.32. |
RESTRUCTURING
RESTRUCTURING | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring Charges [Abstract] | |
RESTRUCTURING | 13. RESTRUCTURING 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 the closure of facilities and legal costs. In the fourth quarter of 2014, the Company developed restructuring plans to close our offices in Asia. Because of these actions, restructuring charges of approximately $310,000 were recorded related primarily to facilities and employee terminations. In the first quarter of 2015, we completed the restructuring plans to close our offices in Asia. The following table shows the restructuring activity for 2014 and 2015 (in thousands): Termination Benefits Facility Costs and Contract Termination Inventory Charges Total Balance at January 1, 2014 $ $ $ $ Charges 250 463 57 770 Payments/settlements (60 ) (437 ) (57 ) (554 ) Balance at December 31, 2014 $ 190 $ 26 $ $ 216 Charges Settlements (190 ) (26 ) (216 ) Balance at December 31, 2015 $ $ $ $ |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | 14. SEGMENT INFORMATION The Companys Chief Executive Officer and management regularly review financial information for the Companys operating segments. The Company previously conducted its operations through three businesses consisting of 1) Intersection, 2) Highway, and 3) LPR. As further described in Note 2 of these Notes to Consolidated Financial Statements, on July 9, 2015, the Company completed the sale of its LPR segment. As a result, effective July 9, 2015, the LPR business qualified for discontinued operations presentation in the Companys consolidated financial statements. Accordingly, financial results for the 12 months ended December 31, 2015 have been reported on this basis. Previously reported results for comparable periods in 2014 and 2013 have also been restated to reflect this reclassification. Accordingly, effective July 9, 2015, the Company has two reportable segments, Intersection and Highway. 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. The RTMS is our radar product line, and revenue consists of international and North American product sales as well as a portion of royalties for the periods from July 24, 2012 to July 14, 2014 (all of which are received from Econolite). Radar products are normally sold in the Highway segment. 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): For the year ended December 31, 2015 Intersection Highway Total Revenue $ 10,198 $ 5,017 $ 15,215 Gross profit 9,128 2,610 11,738 Amortization of intangible assets 455 455 Intangible assets 1,210 1,210 For the year ended December 31, 2014 Intersection Highway Total Revenue $ 11,357 $ 6,786 $ 18,143 Gross profit 10,305 3,255 13,560 Amortization of intangible assets 488 488 Intangible assets 454 454 For the year ended December 31, 2013 Intersection Highway Total Revenue $ 13,428 $ 6,414 $ 19,842 Gross profit 11,559 1,862 13,421 Amortization of intangible assets 488 488 Intangible assets 942 942 We derived the following percentages of our net revenues from the following geographic regions: 2015 2014 2013 Asia Pacific 0 % 11 % 14 % Europe 17 % 18 % 26 % North America 83 % 71 % 60 % No countries other than the United States had revenue in excess of 10% of our total revenue during any periods presented. The aggregate net book value of long-lived assets held outside of the United States, not including intangible assets, was $101,000 and $121,000 at December 31, 2015 and 2014, respectively. |
OTHER ASSETS
OTHER ASSETS | 12 Months Ended |
Dec. 31, 2015 | |
Other Assets [Abstract] | |
OTHER ASSETS | 15. OTHER ASSETS In January 2013, we acquired a minority interest in the shares of common stock of Municipal Parking Services, Inc. (MPS) for an aggregate purchase price of $300,000. The investment was accounted for under the cost method and was included in Other Assets on our consolidated balance sheet at December 31, 2013. In October 2014, our minority interest in MPS was purchased by MPS for $150,000. We recorded an impairment charge of $150,000 in operating expenses in the third quarter of 2014. During the period from April 2013 until March 2 2016, the Chief Executive Officer of MPS served on our Board of Directors. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 16. COMMITMENTS AND CONTINGENCIES Operating Leases We rent office space and equipment under operating lease agreements expiring at various dates through January 2016. Rent expense for office facilities was $480,000 in 2015, $581,000 in 2014 and $616,000 in 2013. Minimum annual rental commitments under noncancelable operating leases are as follows (in thousands): Future Lease 2016 $ 275 2017 263 2018 218 2019 218 2020 127 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 generally accepted accounting principles in the United States, 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 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. Investigation Matter As previously disclosed, Polish authorities conducted an investigation into violations of Polish law related to tenders in the City of Łodź, Poland. A Special Subcommittee of our Audit Committee comprised solely of independent directors retained independent counsel and accounting advisors who conducted an investigation focusing on possible violations of Company policy, internal controls, and laws, including the Foreign Corrupt Practices Act, the U.K. Anti-Bribery Act and Polish law. We voluntarily disclosed this matter to the United States Securities and Exchange Commission (SEC) and the Department of Justice (DOJ). During the third quarter of 2014, we received a letter from the DOJ informing us that their inquiry into this matter had been closed, citing the Companys voluntary disclosure, thorough investigation, cooperation and voluntary enhancements to its compliance program. Additionally, the SEC previously notified the Company that it had closed its investigation without recommending enforcement action. Neither the Company nor any of our subsidiaries was charged with any offense, and there were no fines levied at the close of the investigation by the DOJ or SEC. |
DESCRIPTION OF BUSINESS AND S25
DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
PRINCIPLES OF CONSOLIDATION | PRINCIPLES OF CONSOLIDATION The Consolidated Financial Statements include the accounts of Image Sensing Systems, Inc. and its wholly-owned subsidiaries: Image Sensing Systems HK Limited (ISS HK) located in Hong Kong; Image Sensing Systems (Shenzhen) Limited (ISS WOFE) located in China; Image Sensing Systems Holdings Limited (ISS Holdings), Image Sensing Systems Europe Limited (ISS Europe), Image Sensing Systems EMEA Limited (ISS UK) located in the United Kingdom; Image Sensing Systems Europe Limited SP.Z.O.O., (ISS Poland) located in Poland; Image Sensing Systems Spain SLU (ISS Spain) located in Spain; Image Sensing Systems Germany, GmbH (ISS Germany) located in Germany; and ISS Image Sensing Systems Canada Limited (ISS Canada) located in Canada. All significant inter-company transactions and balances have been eliminated in consolidation. |
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, 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. |
SHIPPING AND HANDLING | SHIPPING AND HANDLING Freight revenue billed to customers is reported within revenue on the Consolidated Statements of Operations, and expenses incurred for shipping products to customers are reported within cost of revenue on the Consolidated Statements of Operations. |
CASH AND CASH EQUIVALENTS | CASH AND CASH EQUIVALENTS We consider all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. Cash equivalents, both inside and outside the United States, are invested in money market funds and bank deposits in local currency denominations. Cash located in foreign banks was $700,000 and $2.0 million at December 31, 2015 and 2014, respectively. We hold our cash and cash equivalents with financial institutions and, at times, the amounts of our balances may be in excess of insurance limits. |
MARKETABLE SECURITIES | MARKETABLE SECURITIES We classify marketable debt securities as available-for-sale investments and these securities are stated at their estimated fair value. The value of these securities is subject to market and credit volatility during the period these investments are held. |
ACCOUNTS RECEIVABLE | ACCOUNTS RECEIVABLE We grant credit to customers in the normal course of business and generally do not require collateral from domestic customers. When deemed appropriate, receivables from customers outside the United States are supported by letters of credit from financial institutions. Management performs on-going credit evaluations of customers. The allowance for doubtful accounts is based on managements assessment of the collectability of specific customer accounts and includes consideration of the credit worthiness and financial condition of those specific customers. We record an allowance to reduce receivables to the amount that is reasonably believed to be collectible and consider factors such as the financial condition of the customer and the aging of the receivables. If there is a deterioration of a customers financial condition, if we become aware of additional information related to the credit worthiness of a customer, or if future actual default rates on trade receivables in general differ from those currently anticipated, we may have to adjust our allowance for doubtful accounts, which would affect earnings in the period the adjustments were made. |
INVENTORIES | INVENTORIES Inventories are primarily electronic components and finished goods and are valued at the lower of cost or market determined under the first-in, first-out accounting method. |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT Property and equipment is stated at cost. Additions, replacements, and improvements are capitalized at cost, while maintenance and repairs are charged to operations as incurred. Depreciation is recorded using the straight-line method over the estimated useful lives of the assets and by accelerated methods for income tax purposes. Leasehold improvements are depreciated over the shorter of the estimated useful lives of the assets or the contractual term of the lease, with consideration of lease renewal options if renewal appears probable. Depreciation is recorded over a three- to seven-year period for financial reporting purposes. |
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. If 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 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. Based on our product development process, technological feasibility is generally established once product and detailed program designs have been completed, uncertainties related to high-risk development issues have been resolved through coding and testing, and we have established that the necessary skills, hardware, and software technology are available for production of the product. Once a software product is available for general release to the public, capitalized development costs associated with that product will begin to be amortized to cost of sales over the products estimated economic life, using the greater of straight-line or a method that results in cost recognition in future periods that is consistent with the anticipated timing of product revenue recognition. Capitalized software development costs are subject to an ongoing assessment of recoverability, which is impacted by estimates and assumptions of future revenues and expenses for these software products, as well as other factors such as changes in product technologies. Any portion of unamortized capitalized software development costs that are determined to be in excess of net realizable value have been expensed in the period in which such a determination is made. We reached technological feasibility for certain software products and, as a result, capitalized $1.2 million of software development costs during the year ended December 31, 2015. 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 December 31, 2015 and 2014, there were no indefinite-lived intangible assets. |
IMPAIRMENT OF LONG-LIVED ASSETS | IMPAIRMENT OF LONG-LIVED ASSETS We review the carrying value of long-lived assets or asset groups, such as property and equipment and intangibles subject to amortization, when events or changes in circumstances such as asset utilization, physical change, legal factors, or other matters indicate that the carrying value may not be recoverable. When this review indicates the carrying value of an asset or asset group exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset or asset group, we recognize an asset impairment charge against operations. The amount of the impairment loss recorded is the amount by which the carrying value of the impaired asset or asset group exceeds its fair value. No such impairment losses were recorded during the years ended December 31, 2015, 2014 or 2013. |
RESEARCH AND DEVELOPMENT | RESEARCH AND DEVELOPMENT Research and development costs associated with new products are charged to operations in the period incurred. |
WARRANTIES | WARRANTIES We generally provide a two to five year warranty on product sales. We record estimated warranty costs at the time of sale and accrue for specific items at the time that their existence is known and the amounts are determinable. We estimate warranty costs using standard quantitative measures based on historical warranty claim experience and an evaluation of specific customer warranty issues. In addition, warranty provisions are also recognized for certain nonrecurring product claims that are individually significant. |
FOREIGN CURRENCY | FOREIGN CURRENCY The financial position and results of operations of our foreign subsidiaries are measured using local currency as the functional currency. Assets and liabilities are translated using fiscal period-end exchange rates, and statements of operations are translated using average exchange rates applicable to each period, with the resulting translation adjustments recorded as a separate component of shareholders equity under Accumulated other comprehensive loss. Gains and losses from foreign currency transactions are recognized in the Consolidated Statements of Operations. |
NET INCOME (LOSS) PER SHARE | NET INCOME (LOSS) PER SHARE Basic income (loss) per share excludes dilution and is computed by dividing net income (loss) attributable to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted income (loss) per share includes potentially dilutive common shares consisting of stock options, restricted stock and warrants using the treasury stock method. Under the treasury stock method, shares associated with certain 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 282,750, 354,000 and 348,000 weighted common shares have been excluded from the diluted weighted shares outstanding calculation for the years ended December 31, 2015, 2014 and 2013, respectively, because the exercise prices were greater than the average market price of the common shares during the period and were excluded from the calculation of diluted net income per share. |
USE OF ESTIMATES | USE OF ESTIMATES The preparation of financial statements in accordance with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities as of the date of the financial statements, and reported amounts of revenue and expense during the reporting period. Predicting future events is inherently an imprecise activity and, as such, requires the use of judgment. Ultimate results could differ from those estimates. Changes in these estimates will be reflected in the financial statements in future periods. |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION We measure the cost of employee services received in exchange for the award of equity instruments based on the fair value of the award at the date of grant and recognize the cost over the period during which an employee is required to provide services in exchange for the award. Stock options are granted at exercise prices equal to the closing market price of our stock on the day before the date of grant. For purposes of determining the estimated fair value of stock-based payment awards, we utilize a Black-Scholes option pricing model, which requires the input of certain assumptions requiring management judgment. Because our employee stock option awards have characteristics significantly different from those of traded options, and because changes in the input assumptions can materially affect fair value estimates, existing models may not provide a reliable single measure of the fair value of employee stock options. Management will continue to assess the assumptions and methodologies used to calculate estimated fair value of stock-based compensation. Circumstances may change and additional data may become available over time that could result in changes to these assumptions and methodologies and thereby materially impact the fair value determination of future grants of stock-based payment awards. If factors change and we employ different assumptions in future periods, the compensation expense recorded may differ significantly from the stock-based compensation expense recorded in the current period. |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842). ASU 2016-02 provides new guidance on how an entity should account for leases and recognize associated lease assets and liabilities. This new guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018, and early adoption is permitted. The new standard must be adopted using a modified retrospective transition, and provides for certain practical expedients. In addition, the transition will require application of the new guidance at the beginning of the earliest comparative period presented. We are currently determining our implementation approach and assessing the impact of ASU 2016-02 on the consolidated financial statements. In November 2015, the FASB issued ASU No. 2015-17, "Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes, which simplifies the presentation of deferred income taxes. ASU 2015-17 requires that deferred tax assets and liabilities be classified as noncurrent in a classified statement of financial position. ASU 2015-17 is effective for financial statements issued for fiscal years beginning after December 15, 2016 (and interim periods within those fiscal years), with early adoption permitted. ASU 2015-17 may be either applied prospectively to all deferred tax assets and liabilities or retrospectively to all periods presented. We have elected to early adopt ASU 2015-17 prospectively in the fourth quarter of 2015. As a result, we have presented all deferred tax assets and liabilities as noncurrent on our consolidated balance sheet as of December 31, 2015, but have not reclassified current deferred tax assets and liabilities on our consolidated balance sheet as of December 31, 2014. There was no impact on our results of operations as a result of the adoption of ASU 2015-17. In May 2014, the FASB issued 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, the 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 this new revenue standard to annual reporting periods beginning after December 15, 2017. All other entities will apply this new revenue standard to annual reporting periods beginning after December 15, 2018. Additionally, the 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 ASU 2014-09 standard to all interim reporting periods within the year of adoption. |
Divestiture of Automatic Lice26
Divestiture of Automatic License Plate Recognition Business (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Schedule of Revenue, operating income, loss on sale of business, and net loss from discontinued operations | Revenue, operating loss, loss on sale of business, and net loss from discontinued operations were as follows (in thousands): Year Ended December 31, 2015 2014 2013 Net Revenue $ 1,409 $ 1,452 $ 2,980 Operating (loss) from discontinued operations (2,538 ) (7,688 ) (4,529 ) Loss on sale of discontinued operations (1,081 ) Income tax expense (benefit) (134 ) (20 ) (58 ) Net loss on discontinued operations, net of tax $ (3,485 ) $ (7,668 ) $ (4,471 ) |
Schedule of classes of assets and liabilities from discontinued operations | The major classes of assets and liabilities from discontinued operations were as follows (in thousands): Year Ended 2015 2014 Accounts receivable, net $ $ 1,685 Inventories 1,409 Other current assets 420 209 Current assets from discontinued operations 420 3,303 Property and equipment, net: 167 Intangible assets, net 3,532 Non-current assets from discontinued operations 3,699 Trade accounts payable 864 Other current liabilities 857 Current liabilities from discontinued operations 1,721 Non-current liabilities from discontinued operations $ $ 91 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets | Intangible assets consisted of the following (dollars in thousands): December 31, 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Value Weighted Average Useful Life (in Years) Developed technology $ 3,900 $ (3,900 ) $ Software development 1,210 1,210 10.0 $ 5,110 $ (3,900 ) $ 1,210 10.0 December 31, 2014 Gross Carrying Amount Accumulated Amortization Net Carrying Value Weighted Average Useful Life (in Years) Developed technology $ 3,900 $ (3,446 ) $ 454 1.0 |
WARRANTIES (Tables)
WARRANTIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Product Warranties Disclosures [Abstract] | |
Schedule of warranty liability and related activity | Warranty liability and related activity consisted of the following (in thousands): Years ended December 31, 2015 2014 2013 Beginning balance $ 824 $ 771 $ 343 Warranty provisions 198 328 209 Warranty claims (293 ) (329 ) (283 ) Adjustments to preexisting warranties 31 54 502 Ending balance $ 760 $ 824 $ 771 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of the components of loss before income taxes | The components of loss before income taxes were as follows (in thousands): Years ended December 31, 2015 2014 2013 Income (loss) from continuing operations before income taxes and discontinued operations Domestic $ 1,057 $ 480 $ (6,275 ) Foreign (656 ) (2,669 ) (1,160 ) Total $ 401 $ (2,189 ) $ (7,435 ) |
Schedule of the components of income tax expense (benefit) | The components of income tax expense (benefit) were as follows (in thousands): Years ended December 31, 2015 2014 2013 Current: Federal $ $ (158 ) $ (230 ) State 7 3 (7 ) Foreign 9 17 80 $ 16 $ (138 ) $ (157 ) Deferred: Federal $ $ $ 4,083 State 120 Foreign 2 (16 ) (51 ) 2 (16 ) 4,152 Total income tax expense (benefit) $ 18 $ (154 ) $ 3,995 |
Schedule of reconciliation from federal statutory income tax provision to our effective tax expense (benefit) | A reconciliation from the federal statutory income tax provision to our effective tax expense (benefit) is as follows (in thousands): Years ended December 31, 2015 2014 2013 United States federal tax statutory rate $ 137 $ (766 ) $ (2,528 ) State taxes, net of federal benefit (6 ) (233 ) (36 ) Valuation allowances against deferred tax assets 637 769 6,657 Research and development tax credits (716 ) (374 ) (252 ) Foreign provision different than U.S. tax rate 104 483 148 Stock option expense 21 33 28 Adjustment of prior year tax credits and refunds (40 ) 102 (63 ) Uncertain tax positions (10 ) (8 ) Other (119 ) (158 ) 49 Total $ 18 $ (154 ) $ 3,995 |
Summary of the Deferred Tax Assets And Liabilities | A summary of the deferred tax assets and liabilities is as follows (in thousands): Years ended December 31, 2015 2014 Deferred tax assets: Accrued compensation and benefits $ 186 $ 141 Inventory reserves 27 217 Allowance for doubtful accounts 9 112 Warranty reserves 168 194 Intangible and other assets 3,027 3,476 Net operating loss carryforwards 6,898 5,620 Non-qualified stock option expense 114 77 Property, equipment and other 133 158 Research and development credit 1,710 913 Total deferred tax asset: 12,272 10,908 Less: valuation allowance (12,205 ) (10,950 ) Net deferred tax assets: 67 (42 ) Deferred tax liabilities: Prepaid expenses and other (48 ) (61 ) Total deferred tax liability: (48 ) (61 ) Total net deferred tax asset/(liability) $ 19 $ (103 ) |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of stock option activity | The following table summarizes stock option activity for 2015, 2014 and 2013: 2015 2014 2013 Shares WAEP* Shares WAEP* Shares WAEP* Options outstanding at beginning of year 354,000 $ 6.30 339,750 $ 6.73 398,893 $ 7.95 Granted 50,000 $ 2.73 167,500 $ 4.92 86,000 $ 6.82 Exercised $ $ (2,333 ) $ 3.65 Expired (3,000 ) $ 9.22 $ (4,000 ) $ 9.00 Forfeited (93,250 ) $ 5.43 (153,250 ) $ 5.74 (138,810 ) $ 10.28 Options outstanding at end of year 307,750 $ 5.96 354,000 $ 6.30 339,750 $ 6.73 Options eligible for exercise at year-end 165,625 $ 7.20 174,000 $ 7.16 130,688 $ 7.71 *Weighted Average Exercise Price |
Schedule Of weighted average assumptions | The weighted average assumptions used to determine the fair value of stock options granted during those fiscal years were as follows: 2015 2014 2013 Expected life (in years) 5.0 5.0 5.0 Risk-free interest rate 1.60 % 1.55 % 1.52 % Expected volatility 67 % 50 % 60 % Dividend yield 0 % 0 % 0 % |
Schedule of other information pertaining to options | Other information pertaining to options for the years ended December 31, 2015, 2014 and 2013 is as follows: 2015 2014 2013 Stock-based compensation expense recognized within general and administrative expense on the consolidated statements of operations $ 279,000 $ 271,000 $ 213,000 Cash received from the exercise of options 8,500 Excess income tax benefits from exercise of stock options |
RESTRUCTURING (Tables)
RESTRUCTURING (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring Charges [Abstract] | |
Schedule of restructuring activity | The following table shows the restructuring activity for 2014 and 2015 (in thousands): Termination Benefits Facility Costs and Contract Termination Inventory Charges Total Balance at January 1, 2014 $ $ $ $ Charges 250 463 57 770 Payments/settlements (60 ) (437 ) (57 ) (554 ) Balance at December 31, 2014 $ 190 $ 26 $ $ 216 Charges Settlements (190 ) (26 ) (216 ) Balance at December 31, 2015 $ $ $ $ |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Schedule of financial information by reportable segment | The following tables set forth selected unaudited financial information for each of our reportable segments (in thousands): For the year ended December 31, 2015 Intersection Highway Total Revenue $ 10,198 $ 5,017 $ 15,215 Gross profit 9,128 2,610 11,738 Amortization of intangible assets 455 455 Intangible assets 1,210 1,210 For the year ended December 31, 2014 Intersection Highway Total Revenue $ 11,357 $ 6,786 $ 18,143 Gross profit 10,305 3,255 13,560 Amortization of intangible assets 488 488 Intangible assets 454 454 For the year ended December 31, 2013 Intersection Highway Total Revenue $ 13,428 $ 6,414 $ 19,842 Gross profit 11,559 1,862 13,421 Amortization of intangible assets 488 488 Intangible assets 942 942 |
Schedule Of Percentages Of Net Revenue By Geographic Regions | We derived the following percentages of our net revenues from the following geographic regions: 2015 2014 2013 Asia Pacific 0 % 11 % 14 % Europe 17 % 18 % 26 % North America 83 % 71 % 60 % |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Minimum annual rental commitments | Minimum annual rental commitments under noncancelable operating leases are as follows (in thousands): Future Lease Payments 2016 $ 275 2017 263 2018 218 2019 218 2020 127 |
DESCRIPTION OF BUSINESS AND S34
DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Royalty percentage of gross profit on licensed products | 50.00% | ||
Software development costs | $ 1,200 | ||
Shares excluded from diluted weighted shares outstanding | 282,750 | 354,000 | 348,000 |
Minimum [Member] | |||
Property, plant and equipment, estimated useful life | 3 years | ||
Maximum [Member] | |||
Property, plant and equipment, estimated useful life | 7 years | ||
Foreign [Member] | |||
Cash | $ 700 | $ 2,000 |
Divestiture of Automatic Lice35
Divestiture of Automatic License Plate Recognition Business (Details Narrative) - USD ($) $ in Thousands | Jul. 09, 2015 | Sep. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Gain (loss) from discontinued operation, net of tax | $ 1,081 | |||
Discontinued operations assets | 420 | $ 7,002 | ||
License Plate Recognition (TagMaster AB) [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Cash consideration from sale of business | $ 4,200 | |||
Net proceeds from sale of business | $ 3,800 | |||
Gain (loss) from discontinued operation, net of tax | $ (1,100) | (1,081) | ||
Discontinued operations assets | $ 3,699 | |||
Non-recurring expense | $ 985 |
Divestiture of Automatic Lice36
Divestiture of Automatic License Plate Recognition Business (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Loss on sale of discontinued operations | $ 1,081 | |||
License Plate Recognition (TagMaster AB) [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net Revenue | 1,409 | $ 1,452 | $ 2,980 | |
Operating income (loss) from continuing operations | (2,538) | (7,688) | (4,529) | |
Loss on sale of discontinued operations | $ (1,100) | (1,081) | ||
Income tax expense (benefit) | (134) | (20) | (58) | |
Net loss on discontinued operations, net of tax | $ (3,485) | $ (7,668) | $ (4,471) |
Divestiture of Automatic Lice37
Divestiture of Automatic License Plate Recognition Business (Details 1) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Non-current assets from discontinued operations | $ 420 | $ 7,002 |
Non-current liabilities from discontinued operations | 1,812 | |
License Plate Recognition (TagMaster AB) [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Accounts receivable, net | 1,685 | |
Inventories | 1,409 | |
Other current assets | 420 | 209 |
Current assets from discontinued operations | $ 420 | 3,303 |
Property and equipment, net: | 167 | |
Intangible assets, net | 3,532 | |
Non-current assets from discontinued operations | 3,699 | |
Trade accounts payable | 864 | |
Other current liabilities | 857 | |
Current liabilities from discontinued operations | 1,721 | |
Non-current liabilities from discontinued operations | $ 91 |
FAIR VALUE MEASUREMENTS AND M38
FAIR VALUE MEASUREMENTS AND MARKETABLE SECURITIES (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Fair Value Disclosures [Abstract] | |||
Proceeds from maturities or sales of available-for-sale securities | $ 2,600 | $ 7,700 | $ 7,300 |
INVENTORIES (Details Narrative)
INVENTORIES (Details Narrative) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 648 | $ 825 |
INTANGIBLE ASSETS (Details)
INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 5,110 | $ 3,900 |
Accumulated Amortization | (3,900) | (3,446) |
Net Carrying Value | 1,210 | 454 |
Software Development [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 3,900 | |
Accumulated Amortization | $ (3,900) | |
Net Carrying Value | ||
Weighted Average Useful Life | 10 years | |
Developed Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 1,210 | 3,900 |
Accumulated Amortization | (3,446) | |
Net Carrying Value | $ 1,210 | $ 454 |
Weighted Average Useful Life | 1 year |
CREDIT FACILITIES (Details Narr
CREDIT FACILITIES (Details Narrative) - Alliance Credit Agreement [Member] - USD ($) $ in Thousands | May. 12, 2014 | Dec. 31, 2015 |
Maxiumum borrowing line of credit capacity | $ 5,000 | |
Interest rate | 3.95% | |
Description of collateral | Inventories, accounts receivable, cash, marketable securities, and equipment. | |
Expiration | Apr. 1, 2016 |
WARRANTIES (Details)
WARRANTIES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Product Warranties Disclosures [Abstract] | |||
Beginning balance | $ 824 | $ 771 | $ 343 |
Warranty provisions | 198 | 203 | 209 |
Warranty claims | (293) | (329) | (283) |
Adjustments to preexisting warranties | 31 | 37 | 502 |
Ending balance | $ 760 | $ 824 | $ 771 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Net operating loss carry forward | $ 6,898 | $ 5,620 |
United States [Member] | ||
Net operating loss carry forward | 14,100 | |
United Kingdom [Member] | ||
Net operating loss carry forward | 8,800 | |
Hong Kong [Member] | ||
Net operating loss carry forward | 1,300 | |
Canada [Member] | ||
Net operating loss carry forward | 70 | |
China [Member] | ||
Net operating loss carry forward | $ 113 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income (loss) from continuing operations before income taxes and discontinued operations | |||
Domestic | $ 1,057 | $ 480 | $ (6,275) |
Foreign | (656) | (2,669) | (1,160) |
Loss before income taxes | $ 401 | $ (2,189) | $ (7,435) |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current: | |||
Federal | $ (158) | $ (230) | |
State | $ 7 | 3 | (7) |
Foreign | 9 | 17 | 80 |
Total current | 16 | $ (138) | (157) |
Deferred: | |||
Federal | 4,083 | ||
State | 120 | ||
Foreign | 2 | $ (16) | (51) |
Total deferred | 2 | (16) | 4,152 |
Total income tax expense (benefit) | $ 18 | $ (154) | $ 3,995 |
INCOME TAXES (Details 2)
INCOME TAXES (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
United States federal tax statutory rate | $ 137 | $ (766) | $ (2,528) |
State taxes, net of federal benefit | (6) | (233) | (36) |
Valuation allowances against deferred tax assets | 637 | 769 | 6,657 |
Research and development tax credits | (716) | (374) | (252) |
Foreign provision different than U.S. tax rate | 104 | 483 | 148 |
Stock option expense | 21 | 33 | 28 |
Adjustment of prior year tax credits and refunds | (40) | 102 | (63) |
Uncertain tax positions | (10) | (8) | |
Other | (119) | (158) | 49 |
Total income tax expense (benefit) | $ 18 | $ (154) | $ 3,995 |
INCOME TAXES (Details 3)
INCOME TAXES (Details 3) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Accrued compensation and benefits | $ 186 | $ 141 |
Inventory reserves | 27 | 217 |
Allowance for doubtful accounts | 9 | 112 |
Warranty reserves | 168 | 194 |
Intangible and other assets | 3,027 | 3,476 |
Net operating loss carryforwards | 6,898 | 5,620 |
Non-qualified stock option expense | 114 | 77 |
Property, equipment and other | 133 | 158 |
Research and development credit | 1,710 | 913 |
Total deferred tax asset | 12,272 | 10,908 |
Less: valuation allowance | (12,205) | (10,950) |
Total deferred tax asset | 67 | (42) |
Deferred tax liabilities: | ||
Prepaid expenses and other | (48) | (61) |
Total deferred tax liability | (48) | (61) |
Total net deferred tax asset/(liability) | $ 19 | $ (103) |
LICENSING (Details Narrative)
LICENSING (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Licensing [Abstract] | |||
Royalty Revenue | $ 8,486 | $ 10,247 | $ 11,598 |
SIGNIFICANT CUSTOMERS AND CON49
SIGNIFICANT CUSTOMERS AND CONCENTRATION OF CREDIT RISK (Details Narrative) - Econolite [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Royalty Income[Member] | |||
Concentration Risk, Percentage | 56.00% | 56.00% | 58.00% |
Accounts Receivable [Member] | |||
Accounts receivable | $ 1,400 | $ 1,500 |
RETIREMENT SAVINGS PLANS (Detai
RETIREMENT SAVINGS PLANS (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | |||
Contributions made to defined contribution plan | $ 84 | $ 108 | $ 100 |
SHAREHOLDERS' EQUITY (Details N
SHAREHOLDERS' EQUITY (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Options outstanding, weighted average remaining contractual term | 6 years 3 months 19 days | |||
Options outstanding Intrinsic value | $ 46,000 | $ 46,000 | ||
Options exercisable, weighted average contractual term | 4 years 8 months 12 days | |||
Weighted average grant date fair value - options | $ 1.53 | $ 2.20 | $ 3.53 | |
Shares available for grant | 377,803 | 377,803 | ||
Options exercised, Intrinsic value | $ 4,000 | |||
Stock awards granted | 8,285 | 32,037 | ||
Stock awards, weighted average grant date fair value | $ 3.77 | $ 3.32 | ||
Minimum [Member] | ||||
Stock option awards, vesting term | 3 years | |||
Stock option awards, contractual term | 9 years | |||
Percentage of vesting shares | 90.00% | |||
Maximum [Member] | ||||
Stock option awards, vesting term | 5 years | |||
Stock option awards, contractual term | 10 years | |||
Percentage of vesting shares | 100.00% |
SHAREHOLDERS' EQUITY (Details)
SHAREHOLDERS' EQUITY (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding | |||
Outstanding - beginning of year | 354,000 | 339,750 | 398,893 |
Granted | 50,000 | 167,500 | 86,000 |
Exercised | (2,333) | ||
Expired | (3,000) | (4,000) | |
Forfeited | (93,250) | (153,250) | (138,810) |
Outstanding - end of period | 307,750 | 354,000 | 339,750 |
Exercisable - end of period | 165,625 | 174,000 | 130,688 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | |||
Outstanding - beginning of year | $ 6.30 | $ 6.73 | $ 7.95 |
Granted | 2.73 | 4.92 | 6.82 |
Exercised | 3.65 | ||
Expired | 9.22 | 9 | |
Forfeited | 5.43 | 5.74 | 10.28 |
Outstanding - end of period | 5.96 | 6.30 | 6.73 |
Exercisable - end of period | $ 7.20 | $ 7.16 | $ 7.71 |
SHAREHOLDERS' EQUITY (Details 1
SHAREHOLDERS' EQUITY (Details 1) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stockholders' Equity Note [Abstract] | |||
Expected life (in years) | 5 years | 5 years | 5 years |
Risk-free interest rate | 1.60% | 1.55% | 1.52% |
Expected volatility | 67.00% | 50.00% | 60.00% |
Dividend yield | 0.00% | 0.00% | 0.00% |
SHAREHOLDERS' EQUITY (Details 2
SHAREHOLDERS' EQUITY (Details 2) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stockholders' Equity Note [Abstract] | |||
Stock-based compensation expense recognized within general and administrative expense | $ 279,000 | $ 271,000 | $ 213,000 |
Cash received from the exercise of stock options | $ 8,500 |
RESTRUCTURING (Details Narrativ
RESTRUCTURING (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2014 | Mar. 31, 2014 | |
Restructuring Charges [Abstract] | ||
Restructuring charges related to facility closures | $ 310 | $ 460 |
RESTRUCTURING (Details)
RESTRUCTURING (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Restructuring Reserve [Roll Forward] | ||
Balance at beginning of period | $ 216 | |
Charges | $ 770 | |
Payments/Settlements | (216) | 216 |
Balance at end of period | 216 | |
Termination Benefits [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Balance at beginning of period | 190 | |
Charges | 250 | |
Payments/Settlements | (190) | (60) |
Balance at end of period | 190 | |
Facility Costs And Contract Termination [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Balance at beginning of period | 26 | |
Charges | 463 | |
Payments/Settlements | $ (26) | (437) |
Balance at end of period | 26 | |
Inventory Charges [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Charges | 57 | |
Payments/Settlements | $ (57) |
SEGMENT INFORMATION (Details Na
SEGMENT INFORMATION (Details Narrative) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)Number | Dec. 31, 2014USD ($) | Dec. 31, 2013 | |
Numbers of reportable segment | Number | 2 | ||
Property and equipment, net | $ 518 | $ 697 | |
Foreign [Member] | |||
Property and equipment, net | $ 101 | $ 121 | |
North America [Member] | |||
Concentration Risk, Percentage | 83.00% | 71.00% | 60.00% |
North America [Member] | Sales Revenue, Net [Member] | Maximum [Member] | |||
Concentration Risk, Percentage | 10.00% |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||
Revenue | $ 15,215 | $ 18,143 | $ 19,842 |
Gross profit | 11,738 | 13,560 | 13,421 |
Amortization of intangible assets | 455 | 488 | 488 |
Intangible assets | 1,210 | 454 | 942 |
Intersection [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | 10,198 | 11,357 | 13,428 |
Gross profit | 9,128 | 10,305 | 11,559 |
Intangible assets | 1,210 | ||
Highway [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | 5,017 | 6,786 | 6,414 |
Gross profit | 2,610 | 3,255 | 1,862 |
Amortization of intangible assets | $ 455 | 488 | 488 |
Intangible assets | $ 454 | $ 942 |
SEGMENT INFORMATION (Details 1)
SEGMENT INFORMATION (Details 1) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Asia Pacific [Member] | |||
Segment Reporting Information [Line Items] | |||
Geographical revenue percentage | 0.00% | 11.00% | 14.00% |
Europe [Member] | |||
Segment Reporting Information [Line Items] | |||
Geographical revenue percentage | 17.00% | 18.00% | 26.00% |
North America [Member] | |||
Segment Reporting Information [Line Items] | |||
Geographical revenue percentage | 83.00% | 71.00% | 60.00% |
OTHER ASSETS (Details Narrative
OTHER ASSETS (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | |
Other Assets [Abstract] | |||
Cost of minority interest of Municipal Parking Servcies, Inc. | $ 300 | ||
Impairment charge of minority interest | $ 150 | ||
Proceeds from sale of minority interest | $ 150 |
COMMITMENTS AND CONTINGENCIES61
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Leases [Abstract] | |||
Operating Leases, Rent Expense | $ 480 | $ 581 | $ 616 |
COMMITMENTS AND CONTINGENCIES62
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Commitments And Contingencies Details | |
2,016 | $ 275 |
2,017 | 263 |
2,018 | 218 |
2,019 | 218 |
2,020 | $ 127 |