Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 30, 2020 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
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 Common Stock, Shares Outstanding | 5,331,799 | |
Entity Current Reporting Status | Yes | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity File Number | 0-26056 | |
Entity Address, Address Line One | 500 Spruce Tree Centre | |
Entity Address, Address Line Two | 1600 University Avenue West | |
Entity Address, City or Town | St. Paul | |
Entity Address, State or Province | MN | |
Entity Address, Postal Zip Code | 55104 | |
Entity Tax Identification Number | 41-1519168 | |
City Area Code | (651) | |
Local Phone Number | 603-7700 | |
Entity Incorporation, State or Country Code | MN | |
Entity Interactive Data Current | Yes | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Common Stock [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common Stock, $0.01 par value | |
Trading Symbol | ISNS | |
Security Exchange Name | NASDAQ | |
Rights [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Preferred Stock Purchase Rights | |
Trading Symbol | ISNS | |
Security Exchange Name | NASDAQ |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 5,425 | $ 5,118 |
Accounts receivable, net of allowance for doubtful accounts of $4 and $19 respectively | 2,898 | 3,126 |
Inventories | 686 | 781 |
Prepaid expenses and other current assets | 571 | 463 |
Total current assets | 9,580 | 9,488 |
Property and equipment: | ||
Furniture and fixtures | 147 | 163 |
Leasehold improvements | 6 | 6 |
Equipment | 1,413 | 1,339 |
Property and equipment, Gross | 1,566 | 1,508 |
Accumulated depreciation | 1,122 | 1,089 |
Property and equipment, Net | 444 | 419 |
Operating lease assets, net | 115 | 181 |
Intangible assets, net | 3,722 | 3,875 |
Deferred income taxes | 5,218 | 5,220 |
TOTAL ASSETS | 19,079 | 19,183 |
Current liabilities: | ||
Accounts payable | 570 | 373 |
Deferred revenue | 18 | 28 |
Warranty | 220 | 313 |
Accrued compensation | 181 | 105 |
Operating lease obligations | 102 | 0 |
Other current liabilities | 200 | 412 |
Total current liabilities | 1,291 | 1,231 |
Operating lease obligations | 13 | 19 |
TOTAL LIABILITIES | 1,304 | 1,250 |
Shareholders' equity: | ||
Preferred stock, $0.01 par value; 5,000,000 shares authorized, none issued or outstanding | 0 | 0 |
Common stock, $0.01 par value; 20,000,000 shares authorized, 5,331,799 and 5,322,849 issued and outstanding at March 31, 2020 and December 31, 2019, respectively | 53 | 53 |
Additional paid-in capital | 24,810 | 24,751 |
Accumulated other comprehensive loss | (412) | (306) |
Accumulated deficit | (6,676) | (6,565) |
Total shareholders' equity | 17,775 | 17,933 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 19,079 | $ 19,183 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Condensed Consolidated Balance Sheets [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 4 | $ 19 |
Preferred stock, par value (in dollars per share) | $ 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 (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock shares authorized | 20,000,000 | 20,000,000 |
Common stock shares issued | 5,331,799 | 5,322,849 |
Common stock shares outstanding | 5,331,799 | 5,322,849 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue: | ||
Total Revenue | $ 3,159 | $ 3,372 |
Cost of revenue: | ||
Total Cost of revenue | 623 | 777 |
Gross profit | 2,536 | 2,595 |
Operating expenses: | ||
Selling, general and administrative | 1,909 | 1,665 |
Research and development | 902 | 620 |
Restructuring charges | 0 | 2 |
Total Operating expenses | 2,811 | 2,287 |
Income (loss) from operations before income taxes | (275) | 308 |
Income tax benefit | (164) | 0 |
Net income (loss) | $ (111) | $ 308 |
Net income (loss) per share: | ||
Basic (in dollars per share) | $ (0.02) | $ 0.06 |
Diluted (in dollars per share) | $ (0.02) | $ 0.06 |
Weighted average number of common shares outstanding: | ||
Basic (in shares) | 5,267 | 5,224 |
Diluted (in shares) | 5,267 | 5,243 |
Product sales [Member] | ||
Revenue: | ||
Total Revenue | $ 1,050 | $ 1,621 |
Cost of revenue: | ||
Total Cost of revenue | 531 | 685 |
Royalties [Member] | ||
Revenue: | ||
Total Revenue | 2,109 | 1,751 |
Cost of revenue: | ||
Total Cost of revenue | $ 92 | $ 92 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Condensed Consolidated Statements of Comprehensive Income (Loss) [Abstract] | ||
Net income (loss) | $ (111) | $ 308 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustment | (106) | 30 |
Comprehensive income (loss) | $ (217) | $ 338 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating activities: | ||
Net income (loss) | $ (111,000) | $ 308,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 50,000 | 51,000 |
Software amortization | 174,000 | 150,000 |
Stock-based compensation | 59,000 | 50,000 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 228,000 | 413,000 |
Inventories | 95,000 | 81,000 |
Prepaid expenses and other current assets | (108,000) | 57,000 |
Accounts payable | 186,000 | (626,000) |
Accrued expenses and other current liabilities | (79,000) | (300,000) |
Net cash provided by operating activities | 494,000 | 184,000 |
Investing activities: | ||
Capitalized software development costs | (22,000) | (419,000) |
Purchases of property and equipment | (75,000) | (75,000) |
Net cash used for investing activities | (97,000) | (494,000) |
Financing activities: | ||
Stock for tax withholding | 0 | (12,000) |
Proceeds from stock options exercised | 0 | 4,000 |
Net cash used for financing activities | 0 | (8,000) |
Effect of exchange rate changes on cash | (90,000) | 30,000 |
Change in cash and cash equivalents | 307,000 | (288,000) |
Cash and cash equivalents at beginning of period | 5,118,000 | 4,236,000 |
Cash and cash equivalents at end of period | 5,425,000 | 3,948,000 |
Non-Cash investing and financing activities: | ||
Purchase of property and equipment in accounts payable | $ 25,000 | $ 9,000 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Captal | Accumulated Other Comprehensive Loss | Accumulated Deficit |
Balance at Mar. 31, 2019 | $ 11,050 | $ 52 | $ 24,592 | $ (342) | $ (13,252) |
Balance (in shares) at Mar. 31, 2019 | 5,293,941 | ||||
Stock-based compensation | 50 | 50 | |||
Stock-based compensation (in shares) | 16,818 | ||||
Stock options exercised | 4 | 4 | |||
Stock options exercised (in shares) | 1,000 | ||||
Stock for tax withholding | (12) | (12) | |||
Stock for tax withholding (in shares) | (2,362) | ||||
Comprehensive income (loss): | |||||
Foreign currency translation adjustment | 30 | 30 | |||
Net income (loss) | 308 | 308 | |||
Cumulative effect from adoption of ASU No. 2016-02 | 33 | 33 | |||
Balance at Dec. 31, 2018 | 10,637 | $ 52 | 24,550 | (372) | (13,593) |
Balance (in shares) at Dec. 31, 2018 | 5,278,485 | ||||
Balance at Mar. 31, 2020 | 17,775 | $ 53 | 24,810 | (412) | (6,676) |
Balance (in shares) at Mar. 31, 2020 | 5,331,799 | ||||
Stock-based compensation | $ 59 | 59 | |||
Stock-based compensation (in shares) | 8,950 | ||||
Stock options exercised (in shares) | 0 | ||||
Comprehensive income (loss): | |||||
Foreign currency translation adjustment | $ (106) | (106) | |||
Net income (loss) | (111) | (111) | |||
Balance at Dec. 31, 2019 | $ 17,933 | $ 53 | $ 24,751 | $ (306) | $ (6,565) |
Balance (in shares) at Dec. 31, 2019 | 5,322,849 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2020 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | Note A: Basis of Presentation Image Sensing Systems, Inc. (referred to in this Quarterly Report on Form 10-Q as "we," "us," "our" and the "Company") 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. The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and with the instructions to the Quarterly Report on Form 10-Q, which require the Company to make estimates and assumptions that affect amounts reported. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to rules and regulations of the Securities and Exchange Commission (the "SEC"). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. It is the opinion of management that the unaudited condensed consolidated financial statements include all adjustments consisting of normal recurring accruals considered necessary for a fair presentation. All significant intercompany balances and transactions have been eliminated. Operating results for the three March 31, 2020 Summary of Significant Accounting Policies The Company believes that of its significant accounting policies, the following are particularly important to the portrayal of the Company's results of operations and financial position and may require the application of a higher level of judgment by the Company's management and, as a result, are subject to an inherent degree of uncertainty. Revenue Recognition On January 1, 2018, we adopted Accounting Standards Update ("ASU") No. 2014 09 606 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 three months ended March 31, 2020 and 2019 consists of the following (in thousands); revenue excludes sales and usage-based taxes when or if it has been determined that we are acting as a pass-through agent: Three Months Ended March 31, 2020 2019 Product sales $ 1,050 $ 1,621 Royalties 2,109 1,751 Total revenue $ 3,159 $ 3,372 Product Sales: Product revenue is generated primarily 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 amount we expect to receive in exchange for those goods or services. Certain product sales may contain multiple performance obligations for revenue recognition purposes. Multiple performance obligations may include hardware, software, installation services, training, and support. For performance obligations without observable stand-alone prices charged to customers Revenue for services such as maintenance, repair, and technical support is recognized either as the service is performed or ratably over the defined contractual period for service maintenance contracts. From time to time, 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. 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% of the gross profit on licensed products is recognized when the products are shipped or delivered by Econolite to its customers. Practical Expedients and Exemptions: We generally expense sales commissions when incurred because the amortization periods would have been one year We do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year 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. Income Taxes We record a tax provision for the anticipated tax consequences of our 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 our 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 $22,000 and $419,000 of software development costs during the quarters ended March 31, 2020 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 March 31, 2020 - lived intangible assets. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2020 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | Note B: Recent Accounting Pronouncements Accounting pronouncements recently adopted In February 2016, the Financial Accounting Standards Board ("FASB") issued ASU No. 2016-02, "Leases (Topic 842)". We adopted ASU 2016-02 and its amendments and elected the effective date transition method as of January 1, 2019, which included recognizing a cumulative effect adjustment through opening accumulated deficit as of that date. Prior year amounts were not recast under the transition approach and, therefore, prior year amounts are excluded from the operating leases footnote. See Note E: Operating Leases In June 2018, the FASB issued ASU No. 2018-07 , "Compensation-Stock Compensation (Topic 718)". ASU 2018-07 largely aligns the accounting for share-based payment awards issued to employees and by expanding the scope of Accounting Standards Codification 718 to apply to share-based transactions as long as the transaction is not effectively a form of financing. We adopted ASU No. 2018-07 as of January 1, 2019. There was no impact to the Company's consolidated financial statements. In August 2018, the SEC adopted the final rule under SEC Release No. 33-10532, "Disclosure Update and Simplification," amending certain disclosure requirements that were redundant, duplicative, overlapping, outdated or superseded. In addition, the amendments expanded the disclosure requirements on the analysis of stockholders' equity for interim financial statements. Under the amendments, an analysis of changes in each caption of stockholders' equity presented in the balance sheet must be provided in a note or separate statement. The analysis must present a reconciliation of the beginning balance to the ending balance for each period for which a statement of comprehensive income is required to be filed. We adopted these changes as of January 1, 2019. In August 2018, the FASB issued ASU No. 2018-13, "Fair Value Measurements (Topic 820)." ASU 2018-13 eliminates, amends and adds disclosure requirements for fair value measurements. The standard is required to be adopted for annual periods beginning after December 15, 2019, including interim periods within that annual period, which is our fiscal year 2020. We adopted these changes as of January 1, 2020; however, there are no required changes that apply to our fair value measurements disclosures. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | Note C: Fair Value Measurements The guidance for fair value measurements establishes the authoritative definition of fair value, sets out a framework for measuring fair value and outlines the required disclosures regarding fair value measurements. Fair value is the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. We use a three Level 1: observable inputs such as quoted prices in active markets; Level 2: inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and Level 3: unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. Nonfinancial Assets Measured at Fair Value on a Nonrecurring Basis Our intangible assets and other long-lived assets are nonfinancial assets that were acquired either as part of a business combination, individually or with a group of other assets. These nonfinancial assets were initially, and have historically been, measured and recognized at amounts equal to the fair value determined as of the date of acquisition. Financial Instruments not Measured at Fair Value Certain of our financial instruments are not measured at fair value and are recorded at carrying amounts approximating fair value, based on their short-term nature or variable interest rate. These financial instruments include cash and cash equivalents, accounts receivable, accounts payable and other current financial assets and liabilities. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2020 | |
Inventories [Abstract] | |
Inventories | Note D: Inventories Inventories consisted of the following (in thousands): March 31, 2020 December 31, 2019 Finished goods $ 534 $ 551 Components 152 230 Total $ 686 $ 781 |
Operating Leases
Operating Leases | 3 Months Ended |
Mar. 31, 2020 | |
Operating Leases [Abstract] | |
Operating Leases | Note E: Operating Leases On January 1, 2019, we adopted ASU No. 2016 02 Leases (Topic 842 The Company is subject to various non-cancelable operating leases for office space and IT equipment expiring at various dates through November 2022. These leases do not have significant rent escalation, holidays, concessions, leasehold improvement incentives, or other build-out clauses. Further, the leases do not contain contingent rent provisions. Most of these leases include an Because most of our leases do not provide an implicit rate, we use our incremental borrowing rate in determining the present value of the lease payments. The incremental borrowing rate represents an estimate of the interest rate we would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of a lease. We used incremental borrowing rates as of January 1, 2019 for operating leases that commenced prior to that date. We have a centrally managed treasury function; therefore, based on the applicable lease terms and the current economic environment, we apply a portfolio approach for determining the incremental borrowing rate. The Three Periods Ended March 31, 2020 2019 Operating lease costs $ 66 $ 65 Variable lease cost 76 76 Total $ 142 $ 141 Variable lease costs consist primarily of property taxes, insurance, and common area or other maintenance costs for our leased facilities and equipment, which are paid based on actual costs incurred by the lessor. Maturities for our lease liabilities for all operating leases are as follows (in thousands) as of March 31, 2020: Total 2020 $ 102 2021 8 2022 7 2023 and thereafter — Total lease payments 117 Less: Interest (2 ) Present value of lease liabilities $ 115 The weighted average remaining lease terms and discount rates for all of our operating leases were as follows as of March 31, 2020: March 31, 2020 Remaining lease term and discount rate: Weighted average remaining lease term (years) 0.84 Weighted average discount rate 4.75 % Cash paid for amounts included in the measurement of operating lease liabilities was $67,000 and $65,000 for the three months ended March 31, 2020 and 2019, respectively, and this amount is included in operating activities in the condensed consolidated statements of cash flows. Separate from the initial recognition of the existing leases, there were no operating lease assets obtained in exchange for new operating lease liabilities for the three months ended March 31, 2020 and 2019. |
Intangible Assets
Intangible Assets | 3 Months Ended |
Mar. 31, 2020 | |
Intangible Assets [Abstract] | |
Intangible Assets | Note F: Intangible Assets Intangible assets consisted of the following (dollars in thousands): March 31, 2020 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 (1,278 ) 1,651 8.0 Echo development costs 1,852 (44 ) 1,808 7.0 IntellitraffiQ development costs 468 (205 ) 263 4.0 Wrong Way development costs 228 (228 ) — — Total $ 9,377 $ (5,655 ) $ 3,722 7.3 December 31, 2019 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 (1,186 ) 1,743 8.0 Software development in process costs 1,830 — 1,830 — IntellitraffiQ development costs 468 (176 ) 292 4.0 Wrong Way development costs 228 (218 ) 10 2.0 Total $ 9,355 $ (5,480 ) $ 3,875 7.1 |
Warranties
Warranties | 3 Months Ended |
Mar. 31, 2020 | |
Warranties [Abstract] | |
Warranties | Note G: Warranties We generally provide a two three year Warranty liability and related activity consisted of the following (in thousands): Three-Month Periods Ended March 31, 2020 2019 Beginning balance $ 313 $ 656 Warranty provisions 7 30 Warranty claims (23 ) (33 ) Adjustments to preexisting warranties (75 ) (81 ) Currency (2 ) (1 ) Ending balance $ 220 $ 573 |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2020 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | Note H: Stock-Based Compensation We compensate officers, directors, key employees and consultants with stock-based compensation under the Image Sensing Systems, Inc. 2014 Stock Option and Incentive Plan (the "2014 Plan"), which was approved by our shareholders and is administered under the supervision of our Board of Directors. The Image Sensing Systems, Inc. 2005 Stock Incentive Plan (the "2005 Plan") expired in 2015, and there are no options or other awards outstanding under the 2005 Plan. 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 ratably over periods of three one nine Compensation expense, net of estimated forfeitures, is recognized ratably over the vesting period. Stock-based compensation expense included in general and administrative expense for the three-month periods ended March 31, 2020 and 2019 was $59,000 and $ 50,000, At March 31, 2020, 5,331,799 shares were available for grant under the Company's 2014 Plan. Stock Options A summary of the stock option activity for the first three 2020 Number of Shares Weighted Weighted Aggregate Options outstanding at December 31, 2019 16,000 $ 4.73 3.97 $ 3,505 Granted — $ — — $ — Exercised — $ — — $ — Expired — $ — — $ — Forfeited — $ — — $ — Options outstanding at March 31, 2020 16,000 $ 4.73 3.72 $ — Options exercisable at March 31, 2020 16,000 $ 4.73 3.72 $ — There were no stock options exercised during the three-month period ended March 31, 2020 and there were stock options exercised to purchase 1,000 shares in the three-month period ended March 31, 2019. During each of the three-month periods ended March 31, 2020 and 2019, we recognized no stock-based compensation expense related to stock options. As of March 31, 2020, there was no unrecognized compensation cost related to non-vested stock options. Restricted Stock Awards and Stock Awards Restricted stock awards are granted under the 2014 Plan at the discretion of the Compensation Committee of our Board of Directors. We issue restricted stock awards to executive officers and key consultants. These awards may contain certain performance conditions or time-based vesting criteria. The 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 of the restricted stock awards, 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. Compensation expense related to any stock awards issued to employees 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. 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. The following table summarizes restricted stock award activity for the first three 2020 Number of Weighted Awards outstanding December 31, 2019 58,961 $ 4.32 Granted 8,950 3.49 Vested (26,802 ) 3.75 Forfeited — — Awards outstanding at March 31, 2020 41,109 $ 4.52 As of March 31, 2020, the total stock-based compensation expense related to non-vested awards not yet recognized was $152,000, which is expected to be recognized over a weighted average period of 1.8 years. During the three-month periods ended March 31, 2020 and March 31, 2019, we recognized $59,000 and $50,000, respectively, of stock-based compensation expense related to restricted stock awards. |
Income (Loss) per Common Share
Income (Loss) per Common Share | 3 Months Ended |
Mar. 31, 2020 | |
Income (Loss) per Common Share [Abstract] | |
Income (Loss) per Common Share | Note I: Income (Loss) per Common Share Net income (loss) per share is computed by dividing net income (loss) by the daily weighted average number of common shares outstanding during the applicable periods. Diluted net income (loss) 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 calculation of the diluted weighted average shares outstanding because the exercise of those options or the vesting of those restricted stock awards would lead to a net reduction in common shares outstanding. As a result, stock options and restricted stock awards to acquire 27,139 and 23,000 weighted common shares have been excluded from the diluted weighted shares outstanding for the three-month periods ended March 31, 2020 and 2019, respectively . A reconciliation of net income (loss) per share is as follows (in thousands, except per share data): Three-Month Periods Ended March 31, 2020 2019 Numerator: Net income (loss) $ (111 ) $ 308 Denominator: Weighted average common shares outstanding 5,267 5,224 Dilutive potential common shares — 19 Shares used in diluted net income (loss) per common share calculations 5,267 5,243 Basic net income (loss) per common share $ (0.02 ) $ 0.06 Diluted net income (loss) per common share $ (0.02 ) $ 0.06 |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2020 | |
Segment Information [Abstract] | |
Segment Information | Note J: 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 table sets forth selected unaudited financial information for each of our reportable segments (in thousands): Three Months Ended March 31, Intersection Highway Total 2020 2019 2020 2019 2020 2019 Revenue $ 2,250 $ 2,072 $ 909 $ 1,300 $ 3,159 $ 3,372 Gross profit 2,069 1,792 467 803 2,536 2,595 Amortization of intangible assets 92 92 82 58 174 150 Intangible assets 1,651 2,018 2,071 1,568 3,722 3,586 |
Restructuring and Exit Activiti
Restructuring and Exit Activities | 3 Months Ended |
Mar. 31, 2020 | |
Restructuring and Exit Activities [Abstract] | |
Restructuring and Exit Activities | Note K: Restructuring and Exit Activities In the third quarter of 2018 $0 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) in Hong Kong; Image Sensing Systems (Shenzhen) Limited (ISS WOFE) in China; Image Sensing Systems Europe Limited (ISS Europe) in the United Kingdom; Image Sensing Systems Europe Limited SP.Z.O.O (ISS Poland) in Poland; and Image Sensing Systems Germany, GmbH (ISS Germany) in Germany. At December 31, 2018, Image Sensing Systems Europe Limited and Image Sensing Systems Europe Limited SP.Z.O.O were fully closed. At December 31, 2019, Image Sensing Systems Germany, GmbH was fully closed. During the first quarter of 2020, we initiated closure of Image Sensing Systems EMEA Limited (ISS UK) and Image Sensing Systems Holdings Limited (ISS Holdings). We incurred $30,000 and $0, respectively, for these entity closure costs in the three-month periods ended March 31, 2020 and March 31, 2019. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | Note L: Commitments and Contingencies Litigation We are involved from time to time in various legal proceedings arising in the ordinary course of our business, including primarily commercial, product liability, employment and intellectual property claims. In accordance with GAAP, we record a liability in our Consolidated Financial Statements with respect to any of these matters when it is both probable t one |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note M: Subsequent Events The ramifications of the coronavirus (“COVID-19”) outbreak reported to have started in December 2019 and spread globally are filled with uncertainty and changing quickly. The Company is considered an essential service and has remained operational. On April 13, 2020, Econolite informed the Company that Econolite had agreed to temporarily close its manufacturing facility in Tecate, Mexico, under guidance from the local government due to COVID-19. Based on information obtained by the Company, Econolite has made alternative arrangements to manufacture Autoscope and related products that had been manufactured at its Mexican facility. We do not know whether the plant remains closed. The COVID-19 pandemic began to impact our operations late in the first quarter of 2020 and is likely to continue to adversely affect our business and results of operations, including as a result of government authorities imposing mandatory closures, work-from-home orders and social distancing protocols, or imposing other restrictions. These actions could materially adversely affect our ability to adequately staff and maintain our operations, impair our ability to sustain sufficient financial liquidity, and adversely impact our financial results. At this time, the Company has not experienced any payment interruptions or requests for special terms. The COVID-19 pandemic has resulted, and is likely to continue to result, in significant economic disruption and has and will likely to continue to adversely affect our business and results of operations. Although these disruptions are expected to be temporary, significant uncertainty exists concerning the magnitude of the impact and duration of the COVID-19 pandemic. As we cannot predict the duration or scope of the COVID-19 pandemic, the anticipated negative financial impact to our results of operations cannot be reasonably estimated but could be material and last for an extended period of time. Under the Paycheck Protection Program (the “PPP”), the United States Small Business Administration (the “SBA”) approved the application of the Company to receive a loan in the amount of $ 923,700 Under the terms of the CARES Act, PPP loan recipients can apply for and be granted forgiveness for all or a portion of loans made under the PPP after eight weeks if the recipients use the PPP loan proceeds for eligible purposes, including payroll costs, mortgage interest, rent or utility costs and meet other requirements regarding, among other things, the maintenance of employment and compensation levels. The Company intends to use the entire PPP Loan amount for qualifying expenses and to apply for forgiveness of the loan in accordance with the terms of the CARES Act. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Basis of Presentation [Abstract] | |
Revenue Recognition | Revenue Recognition On January 1, 2018, we adopted Accounting Standards Update ("ASU") No. 2014 09 606 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 three months ended March 31, 2020 and 2019 consists of the following (in thousands); revenue excludes sales and usage-based taxes when or if it has been determined that we are acting as a pass-through agent: Three Months Ended March 31, 2020 2019 Product sales $ 1,050 $ 1,621 Royalties 2,109 1,751 Total revenue $ 3,159 $ 3,372 Product Sales: Product revenue is generated primarily 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 amount we expect to receive in exchange for those goods or services. Certain product sales may contain multiple performance obligations for revenue recognition purposes. Multiple performance obligations may include hardware, software, installation services, training, and support. For performance obligations without observable stand-alone prices charged to customers Revenue for services such as maintenance, repair, and technical support is recognized either as the service is performed or ratably over the defined contractual period for service maintenance contracts. From time to time, 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. 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% of the gross profit on licensed products is recognized when the products are shipped or delivered by Econolite to its customers. Practical Expedients and Exemptions: We generally expense sales commissions when incurred because the amortization periods would have been one year We do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year |
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. |
Income Taxes | Income Taxes We record a tax provision for the anticipated tax consequences of our 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 our 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 $22,000 and $419,000 of software development costs during the quarters ended March 31, 2020 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 March 31, 2020 - lived intangible assets. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Basis of Presentation [Abstract] | |
Schedule of revenue disaggregated by revenue source | Revenue disaggregated by revenue source for the three months ended March 31, 2020 and 2019 consists of the following (in thousands); revenue excludes sales and usage-based taxes when or if it has been determined that we are acting as a pass-through agent: Three Months Ended March 31, 2020 2019 Product sales $ 1,050 $ 1,621 Royalties 2,109 1,751 Total revenue $ 3,159 $ 3,372 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Inventories [Abstract] | |
Schedule of Inventories | Inventories consisted of the following (in thousands): March 31, 2020 December 31, 2019 Finished goods $ 534 $ 551 Components 152 230 Total $ 686 $ 781 |
Operating Leases (Tables)
Operating Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Operating Leases [Abstract] | |
Schedule of components of our costs for operating leases | The Three Periods Ended March 31, 2020 2019 Operating lease costs $ 66 $ 65 Variable lease cost 76 76 Total $ 142 $ 141 |
Schedule of the future maturities of lease liabilities | Maturities for our lease liabilities for all operating leases are as follows (in thousands) as of March 31, 2020: Total 2020 $ 102 2021 8 2022 7 2023 and thereafter — Total lease payments 117 Less: Interest (2 ) Present value of lease liabilities $ 115 |
Remaining lease term and discount rate | The weighted average remaining lease terms and discount rates for all of our operating leases were as follows as of March 31, 2020: March 31, 2020 Remaining lease term and discount rate: Weighted average remaining lease term (years) 0.84 Weighted average discount rate 4.75 % |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Intangible Assets [Abstract] | |
Schedule of intangible assets | Intangible assets consisted of the following (dollars in thousands): March 31, 2020 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 (1,278 ) 1,651 8.0 Echo development costs 1,852 (44 ) 1,808 7.0 IntellitraffiQ development costs 468 (205 ) 263 4.0 Wrong Way development costs 228 (228 ) — — Total $ 9,377 $ (5,655 ) $ 3,722 7.3 December 31, 2019 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 (1,186 ) 1,743 8.0 Software development in process costs 1,830 — 1,830 — IntellitraffiQ development costs 468 (176 ) 292 4.0 Wrong Way development costs 228 (218 ) 10 2.0 Total $ 9,355 $ (5,480 ) $ 3,875 7.1 |
Warranties (Tables)
Warranties (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Warranties [Abstract] | |
Warranty liability and related activity | Warranty liability and related activity consisted of the following (in thousands): Three-Month Periods Ended March 31, 2020 2019 Beginning balance $ 313 $ 656 Warranty provisions 7 30 Warranty claims (23 ) (33 ) Adjustments to preexisting warranties (75 ) (81 ) Currency (2 ) (1 ) Ending balance $ 220 $ 573 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Stock-Based Compensation [Abstract] | |
Schedule of stock option activity | A summary of the stock option activity for the first three 2020 Number of Shares Weighted Weighted Aggregate Options outstanding at December 31, 2019 16,000 $ 4.73 3.97 $ 3,505 Granted — $ — — $ — Exercised — $ — — $ — Expired — $ — — $ — Forfeited — $ — — $ — Options outstanding at March 31, 2020 16,000 $ 4.73 3.72 $ — Options exercisable at March 31, 2020 16,000 $ 4.73 3.72 $ — |
Table summarizes restricted stock award activity | The following table summarizes restricted stock award activity for the first three 2020 Number of Weighted Awards outstanding December 31, 2019 58,961 $ 4.32 Granted 8,950 3.49 Vested (26,802 ) 3.75 Forfeited — — Awards outstanding at March 31, 2020 41,109 $ 4.52 |
Income (Loss) per Common Share
Income (Loss) per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Income (Loss) per Common Share [Abstract] | |
Schedule of reconciliation of net income (loss) per share | A reconciliation of net income (loss) per share is as follows (in thousands, except per share data): Three-Month Periods Ended March 31, 2020 2019 Numerator: Net income (loss) $ (111 ) $ 308 Denominator: Weighted average common shares outstanding 5,267 5,224 Dilutive potential common shares — 19 Shares used in diluted net income (loss) per common share calculations 5,267 5,243 Basic net income (loss) per common share $ (0.02 ) $ 0.06 Diluted net income (loss) per common share $ (0.02 ) $ 0.06 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Information [Abstract] | |
Schedule of financial information by reportable segment | The following table sets forth selected unaudited financial information for each of our reportable segments (in thousands): Three Months Ended March 31, Intersection Highway Total 2020 2019 2020 2019 2020 2019 Revenue $ 2,250 $ 2,072 $ 909 $ 1,300 $ 3,159 $ 3,372 Gross profit 2,069 1,792 467 803 2,536 2,595 Amortization of intangible assets 92 92 82 58 174 150 Intangible assets 1,651 2,018 2,071 1,568 3,722 3,586 |
Basis of Presentation (Details
Basis of Presentation (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
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 capitalized | $ 22,000 | $ 419,000 |
Impairment of intangible assets | 0 | 0 |
Indefinite‑lived intangible assets | $ 0 | $ 0 |
Basis of Presentation (Detail_2
Basis of Presentation (Details 2) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Total Revenue | $ 3,159 | $ 3,372 |
Product sales [Member] | ||
Total Revenue | 1,050 | 1,621 |
Royalties [Member] | ||
Total Revenue | $ 2,109 | $ 1,751 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Inventories [Abstract] | ||
Finished goods | $ 534 | $ 551 |
Components | 152 | 230 |
Total | $ 686 | $ 781 |
Operating Leases (Details)
Operating Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating Leases [Abstract] | ||
Operating lease cost | $ 66 | $ 65 |
Variable lease cost | 76 | 76 |
Total | $ 142 | $ 141 |
Operating Leases (Details 2)
Operating Leases (Details 2) $ in Thousands | Mar. 31, 2020USD ($) |
Operating Leases [Abstract] | |
2020 | $ 102 |
2021 | 8 |
2022 | 7 |
2023 and thereafter | 0 |
Total lease payments | 117 |
Less: Interest | (2) |
Present value of lease liabilities | $ 115 |
Operating Leases (Details 3)
Operating Leases (Details 3) | Mar. 31, 2020 |
Remaining lease term and discount rate: | |
Weighted average remaining lease term (years) | 10 months 2 days |
Weighted average discount rate | 4.75% |
Operating Leases (Narrative) (D
Operating Leases (Narrative) (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2018 | |
Operating Leases [Abstract] | |||
Operating lease asset | $ 431,000 | ||
Operating lease obligation | $ 431,000 | ||
Cash paid operating lease costs | $ 67,000 | $ 65,000 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 9,377 | $ 9,355 |
Accumulated Amortization | (5,655) | (5,480) |
Net Carrying Value | $ 3,722 | $ 3,875 |
Weighted Average Useful Life | 7 years 3 months 18 days | 7 years 1 month 6 days |
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 | (1,278) | (1,186) |
Net Carrying Value | $ 1,651 | $ 1,743 |
Weighted Average Useful Life | 8 years | 8 years |
Echo development costs [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 1,852 | |
Accumulated Amortization | (44) | |
Net Carrying Value | $ 1,808 | |
Weighted Average Useful Life | 7 years | |
Software development in process costs [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 1,830 | |
Accumulated Amortization | 0 | |
Net Carrying Value | 1,830 | |
IntellitraffiQ Development Costs [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 468 | 468 |
Accumulated Amortization | (205) | (176) |
Net Carrying Value | $ 263 | $ 292 |
Weighted Average Useful Life | 4 years | 4 years |
Wrong Way Development Costs [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 228 | $ 228 |
Accumulated Amortization | (228) | (218) |
Net Carrying Value | $ 0 | $ 10 |
Weighted Average Useful Life | 2 years |
Warranties (Details)
Warranties (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Product Warranty Liability [Line Items] | ||
Beginning balance | $ 313 | $ 656 |
Warranty provisions | 7 | 30 |
Warranty claims | (23) | (33) |
Adjustments to preexisting warranties | (75) | (81) |
Currency | (2) | (1) |
Ending balance | $ 220 | $ 573 |
Minimum [Member] | ||
Product Warranty Liability [Line Items] | ||
Product Warranty Period | 2 years | |
Maximum [Member] | ||
Product Warranty Liability [Line Items] | ||
Product Warranty Period | 3 years |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details Narrative) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options or other awards outstanding | 16,000 | 16,000 | |
Stock-based compensation expense | $ 59,000 | $ 50,000 | |
Shares available for grant | 5,331,799 | ||
Stock option exercised | 0 | ||
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 | ||
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options or other awards outstanding | 0 | ||
Stock-based compensation expense | $ 0 | $ 0 | |
Unrecognized compensation cost related to non-vested stock awards | $ 0 | ||
Stock option exercised | 0 | 1,000 | |
Restricted Stock Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 59,000 | $ 50,000 | |
Unrecognized compensation cost related to non-vested stock awards | $ 152,000 | ||
Period for recognition of unrecognized compensation cost related to non-vested stock awards | 1 year 9 months 18 days | ||
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 (Det_2
Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Number of Shares | ||
Outstanding - beginning of period | 16,000 | |
Granted | 0 | |
Exercised | 0 | |
Expired | 0 | |
Forfeited | 0 | |
Outstanding - end of period | 16,000 | 16,000 |
Exercisable - end of period | 16,000 | |
Weighted Average Exercise Price per Share | ||
Outstanding - beginning of period | $ 4.73 | |
Granted | 0 | |
Exercised | 0 | |
Expired | 0 | |
Forfeited | 0 | |
Outstanding - end of period | 4.73 | $ 4.73 |
Exercisable - end of period | $ 4.73 | |
Weighted Average Remaining Contractual Term | ||
Options outstanding | 3 years 8 months 19 days | 3 years 11 months 19 days |
Options exercisable | 3 years 8 months 19 days | |
Aggregate Intrinsic Value | ||
Outstanding - beginning of period | $ 3,505 | |
Granted | 0 | |
Exercised | 0 | |
Expired | 0 | |
Forfeited | 0 | |
Outstanding - end of period | 0 | $ 3,505 |
Options exercisable | $ 0 |
Stock-Based Compensation (Det_3
Stock-Based Compensation (Details 2) | 3 Months Ended |
Mar. 31, 2020$ / sharesshares | |
Number of Shares | |
Awards outstanding at beginning of year | shares | 58,961 |
Granted | shares | 8,950 |
Vested | shares | (26,802) |
Forfeited | shares | 0 |
Awards outstanding at end of year | shares | 41,109 |
Weighted Average grant date fair value | |
Outstanding at beginning of year | $ / shares | $ 4.32 |
Granted | $ / shares | 3.49 |
Vested | $ / shares | 3.75 |
Forfeited | $ / shares | 0 |
Outstanding at end of year | $ / shares | $ 4.52 |
Income (Loss) per Common Shar_2
Income (Loss) per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Numerator: | ||
Net income (loss) | $ (111) | $ 308 |
Denominator: | ||
Weighted average common shares outstanding | 5,267,000 | 5,224,000 |
Dilutive potential common shares | 0 | 19,000 |
Shares used in diluted net income (loss) per common share calculations | 5,267,000 | 5,243,000 |
Basic net income (loss) per common share | $ (0.02) | $ 0.06 |
Diluted net income (loss) per common share | $ (0.02) | $ 0.06 |
Shares excluded from diluted weighted shares outstanding | 27,139 | 23,000 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of Reportable Segments | 2 | |
Revenue | $ 3,159 | $ 3,372 |
Gross profit | 2,536 | 2,595 |
Amortization of intangible assets | 174 | 150 |
Intangible assets | 3,722 | 3,586 |
Intersection [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 2,250 | 2,072 |
Gross profit | 2,069 | 1,792 |
Amortization of intangible assets | 92 | 92 |
Intangible assets | 1,651 | 2,018 |
Highway [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 909 | 1,300 |
Gross profit | 467 | 803 |
Amortization of intangible assets | 82 | 58 |
Intangible assets | $ 2,071 | $ 1,568 |
Restructuring and Exit Activi_2
Restructuring and Exit Activities (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||
Costs related to the closure of Entity | $ 0 | $ 2,000 |
ISS UK and ISS Holdings [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Entity closures cost | $ 30,000 | $ 0 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] - Paycheck Protection Program Loan - BMO Harris Bank, N.A. | Apr. 22, 2020wk | Apr. 17, 2020USD ($) |
Subsequent Event [Line Items] | ||
Amount of loan approved by the United States Small Business Administration (the "SBA") | $ | $ 923,700 | |
Threshold weeks to apply for forgiveness of the loan in accordance with the terms of the CARES Act | wk | 8 |