Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 28, 2019 | Jun. 30, 2018 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | IMAGE SENSING SYSTEMS INC | ||
Entity Central Index Key | 0000943034 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Public Float | $ 15,979,542 | ||
Entity Common Stock, Shares Outstanding | 5,279,485 | ||
Entity Shell Company | false | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | true |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 4,236 | $ 3,190 |
Accounts receivable, net of allowance for doubtful accounts of $72 and $20, respectively | 3,830 | 3,339 |
Inventories | 1,289 | 335 |
Prepaid expenses and other current assets | 410 | 255 |
Total current assets | 9,765 | 7,119 |
Property and equipment: | ||
Furniture and fixtures | 162 | 164 |
Leasehold improvements | 8 | 26 |
Equipment | 1,058 | 998 |
Total Property and equipment: | 1,228 | 1,188 |
Accumulated depreciation | 882 | 702 |
Net Property and equipment: | 346 | 486 |
Intangible assets, net | 3,317 | 3,485 |
Deferred income taxes | 56 | 38 |
TOTAL ASSETS | 13,484 | 11,128 |
Current liabilities: | ||
Accounts payable | 878 | 563 |
Deferred revenue | 716 | 45 |
Warranty | 656 | 858 |
Accrued compensation | 224 | 288 |
Other current liabilities | 373 | 733 |
Total current liabilities | 2,847 | 2,487 |
TOTAL LIABILITIES | 2,847 | 2,487 |
Shareholders' equity | ||
Preferred stock, $.01 par value; 5,000,000 shares authorized, none issued or outstanding | 0 | 0 |
Common stock, $.01 par value; 20,000,000 shares authorized, 5,278,485 and 5,210,448 issued and outstanding, respectively | 52 | 51 |
Additional paid-in capital | 24,550 | 24,355 |
Accumulated other comprehensive loss | (372) | (310) |
Accumulated deficit | (13,593) | (15,455) |
Total shareholders' equity | 10,637 | 8,641 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 13,484 | $ 11,128 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 72 | $ 20 |
Preferred stock par value | $ 0.01 | $ 0.01 |
Preferred stock shares authorized | 5,000,000 | 5,000,000 |
Preferred stock shares issued | 0 | 0 |
Preferred stock shares outstanding | 0 | 0 |
Common stock par value | $ 0.01 | $ 0.01 |
Common stock shares authorized | 20,000,000 | 20,000,000 |
Common stock shares issued | 5,278,485 | 5,210,448 |
Common stock shares outstanding | 5,278,485 | 5,210,448 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue | $ 14,561 | $ 14,524 |
Cost of revenue | 2,786 | 2,925 |
Gross profit | 11,775 | 11,599 |
Operating expenses: | ||
Selling, marketing and product support | 2,817 | 2,486 |
General and administrative | 3,678 | 3,981 |
Research and development | 3,284 | 3,010 |
Restructuring | 144 | 0 |
Total Operating expenses: | 9,923 | 9,477 |
Operating income from operations | 1,852 | 2,122 |
Other, net | 0 | 41 |
Income from operations before income taxes | 1,852 | 2,163 |
Income tax expense (benefit) | (10) | 85 |
Net income | $ 1,862 | $ 2,078 |
Net income per share: | ||
Basic | $ 0.36 | $ 0.41 |
Diluted | $ 0.36 | $ 0.40 |
Weighted average number of common shares outstanding: | ||
Basic | 5,204 | 5,128 |
Diluted | 5,221 | 5,136 |
Product sales | ||
Revenue | $ 5,644 | $ 5,919 |
Cost of revenue | 2,419 | 2,563 |
Royalties | ||
Revenue | 8,917 | 8,605 |
Cost of revenue | $ 367 | $ 362 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Consolidated Statements Of Comprehensive Income [Abstract] | ||
Net income | $ 1,862 | $ 2,078 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustment | (62) | 53 |
Comprehensive income | $ 1,800 | $ 2,131 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOW - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Operating activities: | ||
Net income | $ 1,862 | $ 2,078 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 244 | 218 |
Software amortization | 530 | 362 |
Stock-based compensation | 206 | 301 |
Deferred income tax expense (benefit) | (21) | 20 |
Loss on disposal of assets | 36 | 2 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (491) | (328) |
Inventories | (954) | (194) |
Prepaid expenses and other current assets | (132) | 26 |
Accounts payable | 337 | 280 |
Accrued expenses and other current liabilities | 45 | 185 |
Net cash provided by operating activities | 1,662 | 2,950 |
Investing activities: | ||
Capitalized software development costs | (362) | (1,052) |
Purchases of property and equipment | (194) | (300) |
Net cash used for investing activities | (556) | (1,352) |
Financing activities: | ||
Stock for tax withholding | (10) | 0 |
Net cash used for financing activities | (10) | 0 |
Effect of exchange rate changes on cash | (50) | 45 |
Increase in cash and cash equivalents | 1,046 | 1,643 |
Cash and cash equivalents at beginning of period | 3,190 | 1,547 |
Cash and cash equivalents at end of period | 4,236 | 3,190 |
Non-Cash investing and financing activities: | ||
Purchase of property and equipment in accounts payable | $ 5 | $ 27 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Captal | Accumulated Other Comprehensive Loss | Accumulated deficit | Total |
Balance at Dec. 31, 2017 | $ 8,641 | $ 51 | $ 24,355 | $ (310) | $ (15,455) | $ 8,641 |
Balance (in shares) at Dec. 31, 2017 | 5,210,448 | |||||
Stock-based compensation | $ 1 | 300 | 301 | |||
Stock-based compensation (in shares) | 115,975 | |||||
Comprehensive income: | ||||||
Foreign currency translation adjustment | 53 | 53 | ||||
Net income | 2,078 | 2,078 | 2,078 | |||
Balance at Dec. 31, 2016 | $ 50 | 24,055 | (363) | (17,533) | 6,209 | |
Balance (in shares) at Dec. 31, 2016 | 5,094,473 | |||||
Balance at Dec. 31, 2018 | 10,637 | $ 52 | 24,550 | (372) | (13,593) | 10,637 |
Balance (in shares) at Dec. 31, 2018 | 5,278,485 | |||||
Stock-based compensation | $ 1 | 205 | 206 | |||
Stock-based compensation (in shares) | 70,285 | |||||
Stock for tax withholding | (10) | (10) | ||||
Stock for tax withholding (in shares) | (2,248) | |||||
Comprehensive income: | ||||||
Foreign currency translation adjustment | (62) | (62) | ||||
Net income | 1,862 | 1,862 | 1,862 | |||
Balance at Dec. 31, 2017 | $ 8,641 | $ 51 | $ 24,355 | $ (310) | $ (15,455) | $ 8,641 |
Balance (in shares) at Dec. 31, 2017 | 5,210,448 |
DESCRIPTION OF BUSINESS AND SIG
DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2018 | |
DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES [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 video and radar processing products for use in applications such as intersection control, highway, bridge and tunnel traffic management and traffic data collection. 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. 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), and 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. REVENUE RECOGNITION On January 1, 2018, we adopted Accounting Standards Update ("ASU") No. 2014 09 Revenue from Contracts with Customers (Topic 606 2014 09 Under ASU 2014 09 We determine revenue recognition through the following steps: ● Identification of a contract, or contracts, with a customer; ● Identification of performance obligations in the contract; ● Determination of the transaction price; ● Allocation of the transaction price to the performance obligations in the contract; and ● Recognition of revenue when, or as, we satisfy a performance obligation. Revenue disaggregated by revenue source for the years ended December 31 2018 and 2017 consists of the following (in thousands). Revenue excludes sales and usage-based taxes where it has been determined that we are acting as a pass-through agent. Years Ended December 31, 2018 2017 Product sales $ 5,644 $ 5,919 Royalties 8,917 8,605 T $ 14,561 $ 14,524 Product Sales: Product revenue is generated from the direct sales of our RTMS radar systems worldwide and our Autoscope video systems in Europe and Asia. Revenue is recognized when control of the promised goods or services is transferred to our customers in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. Certain product sales may contain multiple performance obligations for revenue recognition purposes. Multiple performance obligations may include the hardware, software, installation services, training, and support. In arrangements where we have multiple performance obligations, the transaction price is allocated to each performance obligation using the relative stand-alone selling price. We generally determine stand-alone selling prices based on the observable stand-alone prices charged to customers. For performance obligations without observable stand-alone prices charged to customers, we evaluate the adjusted market assessment approach, the expected cost plus margin approach, and stand-alone sales to estimate the stand-alone selling prices. 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. Our payment terms may vary by the type and location of our customer and the products or services offered. We record deferred revenues when cash payments are received or due in advance of our performance, including amounts which are refundable. The term between invoicing and when payment is due is not significant. For certain products or services and customer types, we require payment before the products or services are delivered to the customer. 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. Royalties: Econolite Control Products, Inc. (“Econolite”) is our licensee that sells our Autoscope video system products in the United States, Mexico, Canada and the Caribbean. The royalty of approximately 50 Practical Expedients and Exemptions: We generally expense sales commissions when incurred because the amortization periods would have been one We do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one 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 226,000 677,000 December 31, 2018 2017 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 management’s 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 customer’s 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 net realizable value 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 seven 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 management’s 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, services, internal labor 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 product’s estimated economic selling 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. Subsequent to reaching technological feasibility for certain software products, we capitalized approximately $ 362,000 1.1 December 31, 2018 2017 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, 2018 2017 no 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 December 31, 2018 2017 RESEARCH AND DEVELOPMENT Research and development costs associated with new products are charged to operations in the period incurred. WARRANTIES We generally provide a two five 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 PER SHARE Basic income per share excludes dilution and is computed by dividing net income attributable to common shareholders by the weighted‑average number of common shares outstanding during the period. Diluted income per share includes potentially dilutive common shares consisting of stock options and restricted stock 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 37,058 103,681 December 31, 2018 2017 LOSS CONTINGENCIES We establish an accrual for loss contingencies when it is both probable that an asset has been impaired or a liability has been incurred and the amount of the loss can be reasonably estimated. When loss contingencies are not probable and cannot be reasonably estimated, we do not establish an accrual. However, when there is at least a reasonable possibility that a loss has been incurred, but it is not probable or reasonably estimated, we disclose the nature of the loss contingency and an estimate of the possible loss or range of loss as applicable. Any adjustment made to a loss contingency accrual during an accounting period affects the earnings of the period. 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 or awards 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 options, 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 Accounting pronouncement recently adopted In May 2014, the Financial Accounting Standards Board (the "FASB") issued ASU 2014 09 605 605 We adopted Topic 606 Revenue Recognition above for further details. Accounting pronouncements not yet adopted In February 2016, the FASB issued ASU No. 2016 - 02 , “Leases (Topic 842 ).” ASU 2016 - 02 provides guidance on how an entity should account for leases and recognize associated lease assets and liab ilities. This guidance is effective for the Company in the first quarter of 2019 . We are currently assessing the impact of ASU 2016 02 In June 201 8 2018 07 718 2018 07 718 2018 In August 2018, the Securities and Exchange Commissions (the "SEC") adopted the final rule under SEC Release No. 33 10532 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2018 | |
FAIR VALUE MEASUREMENTS [Abstract] | |
FAIR VALUE MEASUREMENTS | 2 FAIR VALUE MEASUREMENTS The guidance for fair value measurements establishes the authoritative definition of fair value, sets out a framework for measuring fair value and outlines the required disclosures regarding fair value measurements. Fair value is the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. We use a three ‑ tier fair value hierarchy based upon observable and non ‑ observable inputs as follows: • Level 1 • Level 2 • Level 3 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. 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 financial assets and liabilities. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2018 | |
IINVENTORIES [Abstract] | |
INVENTORIES | 3 INVENT ORIES Inventories consisted of the following (in thousands): December 31, 2018 2017 Finished goods $ 949 $ 288 Components 340 47 Total $ 1,289 $ 335 |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2018 | |
INTANGIBLE ASSETS [Abstract] | |
INTANGIBLE ASSETS | 4 INTANGIBLE ASSETS Intangible assets consisted of the following (dollars in thousands): December 31, 2018 Weighted Gross Net Average Carrying Accumulated Carrying Useful Life Amount Amortization Value (in Years) Developed technology $ 3,900 $ ( 3,900 ) $ — — Vision development costs 2,929 ( 819 ) 2,110 8.0 Software development in process costs 674 — 674 — IntellitraffiQ development co sts 468 ( 59 ) 409 4.0 Wrong Way development costs 228 ( 104 ) 124 2.0 $ 8,199 $ ( 4,882 ) $ 3,317 7.1 December 31, 2017 Weighted Gross Net Average Carrying Accumulated Carrying Useful Life Amount Amortization Value (in Years) Developed technology $ 3,900 $ ( 3,900 ) $ — — Vision development costs 2,929 ( 452 ) 2,477 8.0 Software development in process costs 1,008 — 1,008 — $ 7,837 $ ( 4,352 ) $ 3,485 8.0 The estimated future amortization expense related to other intangible assets for the next five fiscal years is as follows (dollars in thousands): Amortization Expense 2019 $ 598 2020 493 2021 484 2022 426 2023 367 The above amortization expense relates to various capitalized costs related to software development. Future amortization amounts presented above are estimates. Actual future amortization expense may be different due to future acquisitions, impairments, changes in amortization periods, or other factors. In accordance with United States generally accepted accounting principles ("GAAP"), we performed an assessment of recoverability on our software development costs, which is impacted by estimates and assumptions of future revenue and expenses for these products, as well as other factors such as changes in product technologies. We determined that the estimated undiscounted cash flows is greater than the asset carrying value, and there were no impairment triggers as of December 31, 2018 |
CREDIT FACILITIES
CREDIT FACILITIES | 12 Months Ended |
Dec. 31, 2018 | |
CREDIT FACILITIES [Abstract] | |
CREDIT FACILITIES | 5 CREDIT FACILITIES In May 2014, the Company entered into a credit agreement and related documents with Alliance Bank which provided for a revolving line of credit for the Company. The credit agreement and related documents with Alliance Bank (collectively, the “Alliance Credit Agreement”) provided up to a $ 5.0 interest at a fixed annual rate of 3.95 Any advances would have been secured by the Company’s inventories, accounts receivable, cash, marketable securities, and equipment. We were subject to certain covenants under the Alliance Credit Agreement. In April 2016, we entered into an agreement with Alliance Bank amending the Alliance Credit Agreement to extend the maturity date from April 1, 2016 to May 12, 2017 |
WARRANTIES
WARRANTIES | 12 Months Ended |
Dec. 31, 2018 | |
WARRANTIES [Abstract] | |
WARRANTIES | 6 WARRANTIES Warranty liability and related activity consisted of the following (in thousands): Years ended December 31, 2018 2017 Beginning balance $ 858 $ 1,223 Warranty provisions 123 47 Warranty claims ( 74 ) ( 126 ) Adjustments to preexisting warranties ( 251 ) ( 286 ) Ending balance $ 656 $ 858 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2018 | |
INCOME TAXES [Abstract] | |
INCOME TAXES | 7 INCOME TAXES The components of income before income taxes were as follows (in thousands): Years ended December 31, 2018 2017 Income from operations before income taxes Domestic $ 2,455 $ 2,364 Foreign ( 603 ) ( 201 ) Total $ 1,852 $ 2,163 The components of income tax expense (benefit) were as follows (in thousands): Years ended December 31, 2018 2017 Current: Federal $ — $ — State ( 2 ) 5 Foreign 13 60 $ 11 $ 65 Deferred: Federal $ — $ ( 3 ) State — — Foreign ( 21 ) 23 ( 21 ) 20 Total income tax expense (benefit) $ ( 10 ) $ 85 A reconciliation from the federal statutory income tax provision to our effective tax expense (benefit) is as follows (in thousands): Years ended December 31, 2018 2017 United States federal tax statutory rate $ 390 $ 735 State taxes, net of federal benefit ( 54 ) ( 237 ) Valuation allowances against deferred tax assets ( 251 ) ( 4,798 ) Research and development tax credits ( 90 ) 22 Foreign provision different than U.S. tax rate 6 ( 11 ) Stock option expense — 6 Adjustment of prior year tax credits and refunds ( 24 ) 1,231 Change in deferred tax rate from 35 21 — 3,146 Other 13 ( 9 ) Total $ ( 10 ) $ 85 A summary of the deferred tax assets and liabilities is as follows (in thousands): Years ended December 31, 2018 2017 Deferred tax assets: Accrued compensation and benefits $ 32 $ 49 Inventory reserves 17 1 Allowance for doubtful accounts 1 4 Warranty reserves 124 165 Intangible and other assets 535 994 Net operating loss carryforwards 3,980 3,897 Property, equipment and other 65 44 Research and development credit 2,357 2,230 Total deferred tax asset: 7,111 7,384 Less: valuation allowance ( 7,013 ) ( 7,319 ) Net deferred tax assets: 98 65 Deferred tax liabilities: Prepaid expenses and other ( 42 ) ( 27 ) Total deferred tax liability: ( 42 ) ( 27 ) Total net deferred tax asset $ 56 $ 38 As of December 31, 2018 $ 16 678,000 1.6 199,000 89,000 December 31, 2018 In accordance with ASC 740 30 The Company has recognized no material uncertain tax positions as of December 31, 2018 2014 12 New Tax Legislation On December 22, 2017, the President of the United States signed into law the Tax Cuts and Jobs Act tax reform legislation (the "Tax Act"). The Tax Act makes significant changes in U.S. tax law, including a reduction in the U.S. federal corporate income tax rate, changes to net operating loss carryforwards and carrybacks, and a repeal of the corporate alternative minimum tax. The Tax Act reduced the U.S. corporate tax rate from 35 21 2017 |
LICENSING
LICENSING | 12 Months Ended |
Dec. 31, 2018 | |
LICENSING [Abstract] | |
LICENSING | 8 LICENSING We have licensed the exclusive right to manufacture and market the Autoscope video 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 agreement’s term runs to 2031 three We recognized royalty income from this agreement of $ 8.9 8.6 2018 2017 |
SIGNIFICANT CUSTOMERS AND CONCE
SIGNIFICANT CUSTOMERS AND CONCENTRATION OF CREDIT RISK | 12 Months Ended |
Dec. 31, 2018 | |
SIGNIFICANT CUSTOMERS AND CONCENTRATION OF CREDIT RISK [Abstract] | |
SIGNIFICANT CUSTOMERS AND CONCENTRATION OF CREDIT RISK | 9 SIGNIFICANT CUSTOMERS AND CONCENTRATION OF CREDIT RISK Royalty revenue from Econolite comprised 61 59 December 31, 2018 2017 1.6 2.5 December 31, 2018 2017 At December 31, 2018 42 77 Product revenue from four 17 9 December 31, 2018 2017 797,000 167,000 December 31, 2018 2017 December 31, 2018 20 |
RETIREMENT SAVINGS PLANS
RETIREMENT SAVINGS PLANS | 12 Months Ended |
Dec. 31, 2018 | |
RETIREMENT SAVINGS PLANS [Abstract] | |
RETIREMENT SAVINGS PLANS | 10 RETIREMENT SAVINGS PLANS Substantially all of our employees in the United States are eligible to participate in a qualified defined contribution 401 49,000 81,000 2018 2017 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2018 | |
STOCK-BASED COMPENSATION [Abstract] | |
STOCK-BASED COMPENSATION | 11 STOCK-BASED COMPENSATION We compensate officers, directors, key employees and consultants with stock-based compensation under the Image Sensing Systems, Inc. 2005 2005 2014 2014 2005 2005 2005 3 to 5 years from the dates of the grant, beginning one year from the date of grant, and have a contractual term of 9 to 10 years. 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, 2018 and 2017 206,000 301,000 December 31, 2018 122,876 Stock Options The following tables summarize stock option activity: For the year ended December 31, 2018 Number of Shares Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Options outstanding at December 31, 2017 85,750 $ 5.78 4.00 $ — Granted — $ — — $ — Exercised — $ — — $ — Expired ( 12,000 ) $ 5.76 — $ — Forfeited ( 34,750 ) $ 5.26 — $ 363 Options outstanding at December 31, 2018 39,000 $ 6.26 2.80 $ 4,480 Options exercisable at December 31, 2018 39,000 $ 6.26 2.80 $ 4,480 For the year ended December 31, 2017 Number of Shares Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Options outstanding at December 31, 2016 132,500 $ 6.15 4.50 $ — Granted — $ — — $ — Exercised — $ — — $ — Expired ( 22,000 ) $ 8.26 — $ — Forfeited ( 24,750 ) $ 5.55 — $ — Options outstanding at December 31, 2017 85,750 $ 5.78 4.00 $ — Options exercisable at December 31, 2017 79,875 $ 5.90 3.90 $ — During the years ended December 31, 2018 and 2017 1,000 17,000 At December 31, 2018 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. No options were granted for the years ended December 31, 2018 2017 Restricted Stock and Stock Awards Restricted stock awards are granted under the 2014 T he restricted stock awards granted to executive officers vest if the various performance or time-based metrics are met. Stock-based compensation is recognized for the number of awards expected to vest at the end of the period and is expensed beginning on the grant date through the end of the vesting period. At the time of vesting, the recipients of common stock may request to receive a net of the number of shares required for employee withholding taxes, which can be withheld up to the relevant jurisdiction's maximum statutory rate. Stock awards granted to consultants are recognized over the performance period based on the stock price on the date when the consultant's performance is complete. We also 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. The following table summarizes restricted stock award activity for 2018 2017 2018 2017 Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Awards outstanding at beginning of year 32,000 $ 2.95 — $ — Granted 85,619 $ 3.71 115,975 $ 3.08 Vested ( 43,408 ) $ 4.08 ( 83,975 ) $ 3.13 Forfeited ( 15,334 ) $ 2.95 — $ — Awards outstanding at end of year 58,877 $ 3.22 32,000 $ 2.95 As of December 31, 2018 136,000 , which is expected to be recognized over a weighted average period of 2.2 years. During the years ended December 31, 2018 2017 205,000 and $ 283,000 , respectively, of stock-based compensation expense related to restricted stock awards. |
INCOME PER COMMON SHARE
INCOME PER COMMON SHARE | 12 Months Ended |
Dec. 31, 2018 | |
INCOME PER COMMON SHARE [Abstract] | |
INCOME PER COMMON SHARE | 12 Net income per share is computed by dividing net income by the daily weighted average number of common shares outstanding during the applicable periods. Diluted net income per share includes the potentially dilutive effect of common shares subject to outstanding stock options and restricted stock awards using the treasury stock method. Under the treasury stock method, shares subject to certain outstanding stock options and restricted stock awards have been excluded from the diluted weighted average shares outstanding calculation because the exercise of those options or the vesting of those restricted stock awards would lead to a net reduction in common shares outstanding 37,058 103,681 December 31, 2018 December 31, 2017 A reconciliation of net income per share is as follows (in thousands, except per share data): Years ended December 31, 2018 2017 Numerator: Net income $ 1,862 $ 2,078 Denominator: Weighted average common shares outstanding 5,204 5,128 Dilutive potential common shares 17 8 Shares used in diluted net income per common share calculations 5,221 5,136 Basic net income per common share $ 0.36 $ 0.41 Diluted net income per common share $ 0.36 $ 0.40 |
RESTRUCTURING AND EXIT ACTIVITI
RESTRUCTURING AND EXIT ACTIVITIES | 12 Months Ended |
Dec. 31, 2018 | |
RESTRUCTURING AND EXIT ACTIVITIES [Abstract] | |
RESTRUCTURING AND EXIT ACTIVITIES | 13 RESTRUCTURING AND EXIT ACTIVITIES In the third quarter of 2018, we initiated the closure of the Bucharest, Romania office location, a sales office for Image Sensing Systems EMEA Limited. The Company will continue doing business in the European region utilizing its Barcelona, Spain sales office. As a result of the Romania closure, we incurred $ 144,000 2018 The following table shows the restructuring activity for 2018 Facility Costs Termination and Contract Benefits Termination Total Balance at January 1, 2018 $ — $ — $ — Charges 92 52 144 Settlements ( 74 ) ( 48 ) ( 122 ) Balance at December 31, 2018 $ 18 $ 4 $ 22 No restructuring charges were recorded in 2017. In the third quarter of 2016, in order to streamline our operating and cost structure, we initiated the closure of our 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 Europe Limited (ISS Europe) located in the United Kingdom; Image Sensing Systems Europe Limited SP.Z.O.O (ISS Poland) located in Poland; and Image Sensing Systems Germany, GmbH (ISS Germany) located in Germany. At December 31, 2018, Image Sensing Systems Europe Limited and Image Sensing Systems Europe Limited SP.Z.O.O were fully closed. 3,000 31,000 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2018 | |
SEGMENT INFORMATION [Abstract] | |
SEGMENT INFORMATION | 14 SEGMENT INFORMATION The Company's Chief Executive Officer and management regularly review financial information for the Company's discrete operating segments. Based on similarities in the economic characteristics, nature of products and services, production processes, type or class of customer served, method of distribution and regulatory environments, the operating segments have been aggregated for financial statement purposes and categorized into two Autoscope video is our machine-vision product line, and revenue consists of royalties (all of which are received from Econolite), as well as a portion of international product sales. Video products are normally sold in the Intersection segment. RTMS is our radar product line, and revenue consists of international and North American product sales. Radar products are normally sold in the Highway segment. All segment revenues are derived from external customers. 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 financial information for each of our reportable segments (in thousands): For the year ended December 31, 2018 Intersection Highway Total Revenue $ 10,052 $ 4,509 $ 14,561 Gross profit 9,168 2,607 11,775 Amortization of intangible assets 367 163 530 Intangible assets 2,110 1,207 3,317 For the year ended December 31, 2017 Intersection Highway Total Revenue $ 10,109 $ 4,415 $ 14,524 Gross profit 9,048 2,551 11,599 Amortization of intangible assets 362 — 362 Intangible assets 2,477 1,008 3,485 We derived the following percentages of our net revenues from the following geographic regions: For the years ended December 31, 2018 2017 Asia Pacific 0 1 Europe 13 16 North America 87 83 No countries other than the United States had revenue in excess of 10 27,000 98,000 December 31, 2018 2017 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2018 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 15 COMMITMENTS AND CONTINGENCIES Operating Leases We rent office space and equipment under operating lease agreements expiring at various dates through November 2022. Rent expense for office facilities remained consistent in 2018 at $ 574,000 Future Lease Payments 2019 $ 247 2020 150 2021 10 2022 9 2023 — Litigation We are involved from time to time in various legal proceedings arising in the ordinary course of our business, including primarily commercial, product liability, employment and intellectual property claims. In accordance with GAAP, we record a liability in our Consolidated Financial Statements with respect to any of these matters when it is both probable that a liability has been incurred and the amount of the liability can be reasonably estimated. With respect to any currently pending legal proceedings, we have not established an estimated range of reasonably possible additional losses either because we believe that we have valid defenses to claims asserted against us or the proceeding has not advanced to a stage of discovery that would enable us to establish an estimate. We currently do not expect the outcome of these matters to have a material effect on our consolidated results of operations, financial position or cash flows. Litigation, however, is inherently unpredictable, and it is possible that the ultimate outcome of one |
DESCRIPTION OF BUSINESS AND S_2
DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Policy) | 12 Months Ended |
Dec. 31, 2018 | |
DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
CONSOLIDATION | 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), and 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. |
REVENUE RECOGNITION | REVENUE RECOGNITION On January 1, 2018, we adopted Accounting Standards Update ("ASU") No. 2014 09 Revenue from Contracts with Customers (Topic 606 2014 09 Under ASU 2014 09 We determine revenue recognition through the following steps: ● Identification of a contract, or contracts, with a customer; ● Identification of performance obligations in the contract; ● Determination of the transaction price; ● Allocation of the transaction price to the performance obligations in the contract; and ● Recognition of revenue when, or as, we satisfy a performance obligation. Revenue disaggregated by revenue source for the years ended December 31 2018 and 2017 consists of the following (in thousands). Revenue excludes sales and usage-based taxes where it has been determined that we are acting as a pass-through agent. Years Ended December 31, 2018 2017 Product sales $ 5,644 $ 5,919 Royalties 8,917 8,605 T $ 14,561 $ 14,524 Product Sales: Product revenue is generated from the direct sales of our RTMS radar systems worldwide and our Autoscope video systems in Europe and Asia. Revenue is recognized when control of the promised goods or services is transferred to our customers in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. Certain product sales may contain multiple performance obligations for revenue recognition purposes. Multiple performance obligations may include the hardware, software, installation services, training, and support. In arrangements where we have multiple performance obligations, the transaction price is allocated to each performance obligation using the relative stand-alone selling price. We generally determine stand-alone selling prices based on the observable stand-alone prices charged to customers. For performance obligations without observable stand-alone prices charged to customers, we evaluate the adjusted market assessment approach, the expected cost plus margin approach, and stand-alone sales to estimate the stand-alone selling prices. 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. Our payment terms may vary by the type and location of our customer and the products or services offered. We record deferred revenues when cash payments are received or due in advance of our performance, including amounts which are refundable. The term between invoicing and when payment is due is not significant. For certain products or services and customer types, we require payment before the products or services are delivered to the customer. 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. Royalties: Econolite Control Products, Inc. (“Econolite”) is our licensee that sells our Autoscope video system products in the United States, Mexico, Canada and the Caribbean. The royalty of approximately 50 Practical Expedients and Exemptions: We generally expense sales commissions when incurred because the amortization periods would have been one We do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one |
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 226,000 677,000 December 31, 2018 2017 |
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 management’s 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 customer’s 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 net realizable value 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 seven |
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 management’s 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, services, internal labor 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 product’s estimated economic selling 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. Subsequent to reaching technological feasibility for certain software products, we capitalized approximately $ 362,000 1.1 December 31, 2018 2017 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, 2018 2017 no |
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 December 31, 2018 2017 |
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 five |
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 PER SHARE | NET INCOME PER SHARE Basic income per share excludes dilution and is computed by dividing net income attributable to common shareholders by the weighted‑average number of common shares outstanding during the period. Diluted income per share includes potentially dilutive common shares consisting of stock options and restricted stock 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 37,058 103,681 December 31, 2018 2017 |
LOSS CONTINGENCIES | LOSS CONTINGENCIES We establish an accrual for loss contingencies when it is both probable that an asset has been impaired or a liability has been incurred and the amount of the loss can be reasonably estimated. When loss contingencies are not probable and cannot be reasonably estimated, we do not establish an accrual. However, when there is at least a reasonable possibility that a loss has been incurred, but it is not probable or reasonably estimated, we disclose the nature of the loss contingency and an estimate of the possible loss or range of loss as applicable. Any adjustment made to a loss contingency accrual during an accounting period affects the earnings of the period. |
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 or awards 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 options, 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 Accounting pronouncement recently adopted In May 2014, the Financial Accounting Standards Board (the "FASB") issued ASU 2014 09 605 605 We adopted Topic 606 Revenue Recognition above for further details. Accounting pronouncements not yet adopted In February 2016, the FASB issued ASU No. 2016 - 02 , “Leases (Topic 842 ).” ASU 2016 - 02 provides guidance on how an entity should account for leases and recognize associated lease assets and liab ilities. This guidance is effective for the Company in the first quarter of 2019 . We are currently assessing the impact of ASU 2016 02 In June 201 8 2018 07 718 2018 07 718 2018 In August 2018, the Securities and Exchange Commissions (the "SEC") adopted the final rule under SEC Release No. 33 10532 |
DESCRIPTION OF BUSINESS AND S_3
DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Schedule of revenue disaggregated by revenue source | Revenue disaggregated by revenue source for the years ended December 31 2018 and 2017 consists of the following (in thousands). Revenue excludes sales and usage-based taxes where it has been determined that we are acting as a pass-through agent. Years Ended December 31, 2018 2017 Product sales $ 5,644 $ 5,919 Royalties 8,917 8,605 T $ 14,561 $ 14,524 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
IINVENTORIES [Abstract] | |
Schedule of Inventories | Inventories consisted of the following (in thousands): December 31, 2018 2017 Finished goods $ 949 $ 288 Components 340 47 Total $ 1,289 $ 335 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
INTANGIBLE ASSETS [Abstract] | |
Schedule of intangible assets | Intangible assets consisted of the following (dollars in thousands): December 31, 2018 Weighted Gross Net Average Carrying Accumulated Carrying Useful Life Amount Amortization Value (in Years) Developed technology $ 3,900 $ ( 3,900 ) $ — — Vision development costs 2,929 ( 819 ) 2,110 8.0 Software development in process costs 674 — 674 — IntellitraffiQ development co sts 468 ( 59 ) 409 4.0 Wrong Way development costs 228 ( 104 ) 124 2.0 $ 8,199 $ ( 4,882 ) $ 3,317 7.1 December 31, 2017 Weighted Gross Net Average Carrying Accumulated Carrying Useful Life Amount Amortization Value (in Years) Developed technology $ 3,900 $ ( 3,900 ) $ — — Vision development costs 2,929 ( 452 ) 2,477 8.0 Software development in process costs 1,008 — 1,008 — $ 7,837 $ ( 4,352 ) $ 3,485 8.0 |
Schedule of estimated future amortization expense | The estimated future amortization expense related to other intangible assets for the next five fiscal years is as follows (dollars in thousands): Amortization Expense 2019 $ 598 2020 493 2021 484 2022 426 2023 367 |
WARRANTIES (Tables)
WARRANTIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
WARRANTIES [Abstract] | |
Warranty liability and related activity | Warranty liability and related activity consisted of the following (in thousands): Years ended December 31, 2018 2017 Beginning balance $ 858 $ 1,223 Warranty provisions 123 47 Warranty claims ( 74 ) ( 126 ) Adjustments to preexisting warranties ( 251 ) ( 286 ) Ending balance $ 656 $ 858 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
INCOME TAXES [Abstract] | |
Schedule of the components of income before income taxes | The components of income before income taxes were as follows (in thousands): Years ended December 31, 2018 2017 Income from operations before income taxes Domestic $ 2,455 $ 2,364 Foreign ( 603 ) ( 201 ) Total $ 1,852 $ 2,163 |
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, 2018 2017 Current: Federal $ — $ — State ( 2 ) 5 Foreign 13 60 $ 11 $ 65 Deferred: Federal $ — $ ( 3 ) State — — Foreign ( 21 ) 23 ( 21 ) 20 Total income tax expense (benefit) $ ( 10 ) $ 85 |
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, 2018 2017 United States federal tax statutory rate $ 390 $ 735 State taxes, net of federal benefit ( 54 ) ( 237 ) Valuation allowances against deferred tax assets ( 251 ) ( 4,798 ) Research and development tax credits ( 90 ) 22 Foreign provision different than U.S. tax rate 6 ( 11 ) Stock option expense — 6 Adjustment of prior year tax credits and refunds ( 24 ) 1,231 Change in deferred tax rate from 35 21 — 3,146 Other 13 ( 9 ) Total $ ( 10 ) $ 85 |
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, 2018 2017 Deferred tax assets: Accrued compensation and benefits $ 32 $ 49 Inventory reserves 17 1 Allowance for doubtful accounts 1 4 Warranty reserves 124 165 Intangible and other assets 535 994 Net operating loss carryforwards 3,980 3,897 Property, equipment and other 65 44 Research and development credit 2,357 2,230 Total deferred tax asset: 7,111 7,384 Less: valuation allowance ( 7,013 ) ( 7,319 ) Net deferred tax assets: 98 65 Deferred tax liabilities: Prepaid expenses and other ( 42 ) ( 27 ) Total deferred tax liability: ( 42 ) ( 27 ) Total net deferred tax asset $ 56 $ 38 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
STOCK-BASED COMPENSATION [Abstract] | |
Schedule of stock option activity | Stock Options The following tables summarize stock option activity: For the year ended December 31, 2018 Number of Shares Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Options outstanding at December 31, 2017 85,750 $ 5.78 4.00 $ — Granted — $ — — $ — Exercised — $ — — $ — Expired ( 12,000 ) $ 5.76 — $ — Forfeited ( 34,750 ) $ 5.26 — $ 363 Options outstanding at December 31, 2018 39,000 $ 6.26 2.80 $ 4,480 Options exercisable at December 31, 2018 39,000 $ 6.26 2.80 $ 4,480 For the year ended December 31, 2017 Number of Shares Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Options outstanding at December 31, 2016 132,500 $ 6.15 4.50 $ — Granted — $ — — $ — Exercised — $ — — $ — Expired ( 22,000 ) $ 8.26 — $ — Forfeited ( 24,750 ) $ 5.55 — $ — Options outstanding at December 31, 2017 85,750 $ 5.78 4.00 $ — Options exercisable at December 31, 2017 79,875 $ 5.90 3.90 $ — |
Table summarizes restricted stock award activity | The following table summarizes restricted stock award activity for 2018 2017 2018 2017 Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Awards outstanding at beginning of year 32,000 $ 2.95 — $ — Granted 85,619 $ 3.71 115,975 $ 3.08 Vested ( 43,408 ) $ 4.08 ( 83,975 ) $ 3.13 Forfeited ( 15,334 ) $ 2.95 — $ — Awards outstanding at end of year 58,877 $ 3.22 32,000 $ 2.95 |
INCOME PER COMMON SHARE (Tables
INCOME PER COMMON SHARE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
INCOME PER COMMON SHARE [Abstract] | |
Schedule of reconciliation of net income per share | A reconciliation of net income per share is as follows (in thousands, except per share data): Years ended December 31, 2018 2017 Numerator: Net income $ 1,862 $ 2,078 Denominator: Weighted average common shares outstanding 5,204 5,128 Dilutive potential common shares 17 8 Shares used in diluted net income per common share calculations 5,221 5,136 Basic net income per common share $ 0.36 $ 0.41 Diluted net income per common share $ 0.36 $ 0.40 |
RESTRUCTURING AND EXIT ACTIVI_2
RESTRUCTURING AND EXIT ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
RESTRUCTURING AND EXIT ACTIVITIES [Abstract] | |
Schedule of restructuring activity | The following table shows the restructuring activity for 2018 Facility Costs Termination and Contract Benefits Termination Total Balance at January 1, 2018 $ — $ — $ — Charges 92 52 144 Settlements ( 74 ) ( 48 ) ( 122 ) Balance at December 31, 2018 $ 18 $ 4 $ 22 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
SEGMENT INFORMATION [Abstract] | |
Schedule of financial information by reportable segment | The following tables set forth selected financial information for each of our reportable segments (in thousands): For the year ended December 31, 2018 Intersection Highway Total Revenue $ 10,052 $ 4,509 $ 14,561 Gross profit 9,168 2,607 11,775 Amortization of intangible assets 367 163 530 Intangible assets 2,110 1,207 3,317 For the year ended December 31, 2017 Intersection Highway Total Revenue $ 10,109 $ 4,415 $ 14,524 Gross profit 9,048 2,551 11,599 Amortization of intangible assets 362 — 362 Intangible assets 2,477 1,008 3,485 |
Schedule Of Percentages Of Net Revenue By Geographic Regions | We derived the following percentages of our net revenues from the following geographic regions: For the years ended December 31, 2018 2017 Asia Pacific 0 1 Europe 13 16 North America 87 83 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
Schedule of minimum annual rental commitments under noncancelable operating leases | We rent office space and equipment under operating lease agreements expiring at various dates through November 2022. Rent expense for office facilities remained consistent in 2018 at $ 574,000 Future Lease Payments 2019 $ 247 2020 150 2021 10 2022 9 2023 — |
DESCRIPTION OF BUSINESS AND S_4
DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Description of Business and Significant Accounting Policies [Line Items] | ||
Royalty percentage of gross profit on licensed products | 50.00% | |
Amortization period for expense sales commissions incurred, maximum | 1 year | |
Period for the value of unsatisfied performance obligations which are not disclosed | 1 year | |
Software development costs | $ 362,000 | $ 1,100,000 |
Indefinite‑lived intangible assets | 0 | 0 |
Impairment of intangible assets | $ 0 | $ 0 |
Shares excluded from diluted weighted shares outstanding | 37,058 | 103,681 |
Minimum [Member] | ||
Description of Business and Significant Accounting Policies [Line Items] | ||
Product Warranty Period | 2 years | |
Property, plant and equipment, estimated useful life | 3 years | |
Maximum [Member] | ||
Description of Business and Significant Accounting Policies [Line Items] | ||
Product Warranty Period | 5 years | |
Property, plant and equipment, estimated useful life | 7 years | |
Foreign [Member] | ||
Description of Business and Significant Accounting Policies [Line Items] | ||
Cash | $ 226,000 | $ 677,000 |
DESCRIPTION OF BUSINESS AND S_5
DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 14,561 | $ 14,524 |
Product sales [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 5,644 | 5,919 |
Royalties [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 8,917 | $ 8,605 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
IINVENTORIES [Abstract] | ||
Finished goods | $ 949 | $ 288 |
Components | 340 | 47 |
Total | $ 1,289 | $ 335 |
INTANGIBLE ASSETS (Details)
INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 8,199 | $ 7,837 |
Accumulated Amortization | (4,882) | (4,352) |
Net Carrying Value | $ 3,317 | $ 3,485 |
Weighted Average Useful Life | 7 years 1 month 6 days | 8 years |
Developed Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 3,900 | $ 3,900 |
Accumulated Amortization | (3,900) | (3,900) |
Net Carrying Value | 0 | 0 |
Vision Development Costs [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 2,929 | 2,929 |
Accumulated Amortization | (819) | (452) |
Net Carrying Value | $ 2,110 | $ 2,477 |
Weighted Average Useful Life | 8 years | 8 years |
Software Development [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 674 | $ 1,008 |
Accumulated Amortization | 0 | 0 |
Net Carrying Value | 674 | $ 1,008 |
Intellitraffiq Development Costs [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 468 | |
Accumulated Amortization | (59) | |
Net Carrying Value | $ 409 | |
Weighted Average Useful Life | 4 years | |
Wrong Way Development Costs [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 228 | |
Accumulated Amortization | (104) | |
Net Carrying Value | $ 124 | |
Weighted Average Useful Life | 2 years |
INTANGIBLE ASSETS (Details 3)
INTANGIBLE ASSETS (Details 3) $ in Thousands | Dec. 31, 2018USD ($) |
INTANGIBLE ASSETS [Abstract] | |
2019 | $ 598 |
2020 | 493 |
2021 | 484 |
2022 | 426 |
2023 | $ 367 |
CREDIT FACILITIES (Details Narr
CREDIT FACILITIES (Details Narrative) - Alliance Credit Agreement [Member] - USD ($) $ in Millions | May 12, 2014 | Dec. 31, 2018 |
Line of Credit Facility [Line Items] | ||
Maxiumum borrowing line of credit capacity | $ 5 | |
Interest rate | 3.95% | |
Description of collateral | Inventories, accounts receivable, cash, marketable securities, and equipment. | |
Expiration | May 12, 2017 |
WARRANTIES (Details)
WARRANTIES (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
WARRANTIES [Abstract] | ||
Beginning balance | $ 858 | $ 1,223 |
Warranty provisions | 123 | 47 |
Warranty claims | (74) | (126) |
Adjustments to preexisting warranties | (251) | (286) |
Ending balance | $ 656 | $ 858 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - USD ($) | Dec. 21, 2017 | Dec. 31, 2018 | Dec. 31, 2017 |
Operating Loss Carryforwards [Line Items] | |||
Deferred tax rate | 35.00% | 21.00% | |
Net operating loss carry forward | $ 3,980,000 | $ 3,897,000 | |
United States [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carry forward | 16,000,000 | ||
United Kingdom [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carry forward | 678,000 | ||
Hong Kong [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carry forward | 1,600,000 | ||
Canada [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carry forward | 199,000 | ||
China [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carry forward | $ 89,000 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income (loss) from continuing operations before income taxes and discontinued operations | ||
Domestic | $ 2,455 | $ 2,364 |
Foreign | (603) | (201) |
Total | $ 1,852 | $ 2,163 |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Current: | ||
Federal | $ 0 | $ 0 |
State | (2) | 5 |
Foreign | 13 | 60 |
Total current | 11 | 65 |
Deferred: | ||
Federal | 0 | (3) |
State | 0 | 0 |
Foreign | (21) | 23 |
Total deferred | (21) | 20 |
Total income tax expense (benefit) | $ (10) | $ 85 |
INCOME TAXES (Details 2)
INCOME TAXES (Details 2) - USD ($) $ in Thousands | Dec. 21, 2017 | Dec. 31, 2018 | Dec. 31, 2017 |
INCOME TAXES [Abstract] | |||
United States federal tax statutory rate | $ 390 | $ 735 | |
State taxes, net of federal benefit | (54) | (237) | |
Valuation allowances against deferred tax assets | (251) | (4,798) | |
Research and development tax credits | (90) | 22 | |
Foreign provision different than U.S. tax rate | 6 | (11) | |
Stock option expense | 0 | 6 | |
Adjustment of prior year tax credits and refunds | (24) | 1,231 | |
Change in deferred tax rate from 35% to 21% | 0 | 3,146 | |
Other | 13 | (9) | |
Total income tax expense (benefit) | $ (10) | $ 85 | |
Deferred tax rate (as a percent) | 35.00% | 21.00% |
INCOME TAXES (Details 3)
INCOME TAXES (Details 3) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Accrued compensation and benefits | $ 32 | $ 49 |
Inventory reserves | 17 | 1 |
Allowance for doubtful accounts | 1 | 4 |
Warranty reserves | 124 | 165 |
Intangible and other assets | 535 | 994 |
Net operating loss carryforwards | 3,980 | 3,897 |
Property, equipment and other | 65 | 44 |
Research and development credit | 2,357 | 2,230 |
Total deferred tax asset | 7,111 | 7,384 |
Less: valuation allowance | (7,013) | (7,319) |
Net deferred tax assets: | 98 | 65 |
Deferred tax liabilities: | ||
Prepaid expenses and other | (42) | (27) |
Total deferred tax liability | (42) | (27) |
Total net deferred tax asset | $ 56 | $ 38 |
LICENSING (Details Narrative)
LICENSING (Details Narrative) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
LICENSING [Abstract] | ||
Revenue | $ 8.9 | $ 8.6 |
SIGNIFICANT CUSTOMERS AND CON_2
SIGNIFICANT CUSTOMERS AND CONCENTRATION OF CREDIT RISK (Details Narrative) - Customer concentration [Member] | 12 Months Ended | |
Dec. 31, 2018USD ($)Customer | Dec. 31, 2017USD ($) | |
Accounts Receivable [Member] | ||
Concentration Risk [Line Items] | ||
Accounts receivable | $ 797,000 | $ 167,000 |
Product revenue [Member] | ||
Concentration Risk [Line Items] | ||
Number of customers | Customer | 4 | |
Concentration Risk, Percentage | 17.00% | 9.00% |
Econolite [Member] | Accounts Receivable [Member] | ||
Concentration Risk [Line Items] | ||
Accounts receivable | $ 1,600,000 | $ 2,500,000 |
Econolite [Member] | Royalty Income[Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 61.00% | 59.00% |
RETIREMENT SAVINGS PLANS (Detai
RETIREMENT SAVINGS PLANS (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
RETIREMENT SAVINGS PLANS [Abstract] | ||
Contributions made to defined contribution plan | $ 49,000 | $ 81,000 |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock awards granted | 85,619 | 115,975 |
Vesting rights description of stock awards granted | The restricted stock awards granted to executive officers vest if the various performance or time-based metrics are met. | |
Stock-based compensation | $ 206,000 | $ 301,000 |
Shares available for grant | 122,876 | |
Options outstanding, weighted average remaining contractual term | 2 years 9 months 18 days | 3 years 10 months 24 days |
Stock awards, weighted average grant date fair value | $ 3.71 | $ 3.08 |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation | $ 205,000 | $ 283,000 |
Total unrecognized stock option expense | $ 136,000 | |
Weighted average period in which stock option expense to be recognized | 2 years 2 months 12 days | |
Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation | $ 1,000 | $ 17,000 |
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock option awards, vesting term | 3 years | |
Stock option awards, contractual term | 9 years | |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock option awards, vesting term | 5 years | |
Stock option awards, contractual term | 10 years |
STOCK-BASED COMPENSATION (Det_2
STOCK-BASED COMPENSATION (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Aggregate Intrinsic Value | |||
Outstanding - beginning of period | $ 0 | $ 0 | |
Granted | 0 | 0 | |
Exercised | 0 | 0 | |
Expired | 0 | 0 | |
Forfeited | 363 | 0 | |
Outstanding - end of period | 4,480 | 0 | $ 0 |
Options exercisable | $ 4,480 | $ 0 | |
Number of Shares | |||
Options outstanding at beginning of year | 85,750 | 132,500 | |
Granted | 0 | 0 | |
Exercised | 0 | 0 | |
Expired | (12,000) | (22,000) | |
Forfeited | (34,750) | (24,750) | |
Options outstanding at end of year | 39,000 | 85,750 | 132,500 |
Options eligible for exercise at year-end | 39,000 | 79,875 | |
Weighted Average Exercise Price per Share | |||
Options outstanding at beginning of year | $ 5.78 | $ 6.15 | |
Granted | 0 | 0 | |
Exercised | 0 | 0 | |
Expired | 5.76 | 8.26 | |
Forfeited | 5.26 | 5.55 | |
Options outstanding at end of year | 6.26 | 5.78 | $ 6.15 |
Options eligible for exercise at year-end | $ 6.26 | $ 5.90 | |
Weighted Average Remaining Contractual Term | |||
Options outstanding | 2 years 9 months 18 days | 4 years | 4 years 6 months |
Options exercisable | 2 years 9 months 18 days | 3 years 10 months 24 days |
STOCK-BASED COMPENSATION (Det_3
STOCK-BASED COMPENSATION (Details 1) - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Number of shares | ||
Awards outstanding at beginning of year | 32,000 | 0 |
Granted | 85,619 | 115,975 |
Vested | (43,408) | (83,975) |
Forfeited | (15,334) | 0 |
Awards outstanding at end of year | 58,877 | 32,000 |
Weighted Average grant date fair value | ||
Awards outstanding at beginning of year | $ 2.95 | $ 0 |
Granted | 3.71 | 3.08 |
Vested | 4.08 | 3.13 |
Forfeited | 2.95 | 0 |
Awards outstanding at end of year | $ 3.22 | $ 2.95 |
INCOME PER COMMON SHARE (Detail
INCOME PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Numerator: | ||
Net income | $ 1,862 | $ 2,078 |
Denominator: | ||
Weighted average common shares outstanding | 5,204,000 | 5,128,000 |
Dilutive potential common shares | 17,000 | 8,000 |
Shares used in diluted net loss per common share calculations | 5,221,000 | 5,136,000 |
Basic net loss per common share | $ 0.36 | $ 0.41 |
Diluted net loss per common share | $ 0.36 | $ 0.40 |
Shares excluded from diluted weighted shares outstanding | 37,058 | 103,681 |
RESTRUCTURING AND EXIT ACTIVI_3
RESTRUCTURING AND EXIT ACTIVITIES (Details Narrative) - USD ($) | 3 Months Ended | ||
Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
RESTRUCTURING AND EXIT ACTIVITIES [Abstract] | |||
Restructuring charges related to facility closures | $ 144,000 | ||
Restructuring charges incurred | $ 3,000 | $ 31,000 |
RESTRUCTURING AND EXIT ACTIVI_4
RESTRUCTURING AND EXIT ACTIVITIES (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Restructuring Reserve [Roll Forward] | |
Balance at beginning of period | $ 0 |
Charges | 144 |
Settlements | (122) |
Balance at end of period | 22 |
Termination Benefits [Member] | |
Restructuring Reserve [Roll Forward] | |
Balance at beginning of period | 0 |
Charges | 92 |
Settlements | (74) |
Balance at end of period | 18 |
Facility Costs And Contract Termination [Member] | |
Restructuring Reserve [Roll Forward] | |
Balance at beginning of period | 0 |
Charges | 52 |
Settlements | (48) |
Balance at end of period | $ 4 |
SEGMENT INFORMATION (Details Na
SEGMENT INFORMATION (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Numbers of reportable segment | 2 | |
Property and equipment, net | $ 346,000 | $ 486,000 |
Foreign [Member] | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | $ 27,000 | $ 98,000 |
North America [Member] | ||
Segment Reporting Information [Line Items] | ||
Concentration Risk, Percentage | 87.00% | 83.00% |
North America [Member] | Sales Revenue, Net [Member] | Maximum [Member] | ||
Segment Reporting Information [Line Items] | ||
Concentration Risk, Percentage | 10.00% |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 14,561 | $ 14,524 |
Gross profit | 11,775 | 11,599 |
Amortization of intangible assets | 530 | 362 |
Intangible assets | 3,317 | 3,485 |
Intersection [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 10,052 | 10,109 |
Gross profit | 9,168 | 9,048 |
Amortization of intangible assets | 367 | 362 |
Intangible assets | 2,110 | 2,477 |
Highway [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 4,509 | 4,415 |
Gross profit | 2,607 | 2,551 |
Amortization of intangible assets | 163 | 0 |
Intangible assets | $ 1,207 | $ 1,008 |
SEGMENT INFORMATION (Details 1)
SEGMENT INFORMATION (Details 1) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Asia Pacific [Member] | ||
Segment Reporting Information [Line Items] | ||
Geographical revenue percentage | 0.00% | 1.00% |
Europe [Member] | ||
Segment Reporting Information [Line Items] | ||
Geographical revenue percentage | 13.00% | 16.00% |
North America [Member] | ||
Segment Reporting Information [Line Items] | ||
Geographical revenue percentage | 87.00% | 83.00% |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details Narrative) | 12 Months Ended |
Dec. 31, 2018USD ($) | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
Operating Leases, Rent Expense | $ 574,000 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands | Dec. 31, 2018USD ($) |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
2019 | $ 247 |
2020 | 150 |
2021 | 10 |
2022 | 9 |
2023 | $ 0 |