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PWFL PowerFleet

Document and Entity Information

Document and Entity Information - shares6 Months Ended
Jun. 30, 2020Aug. 12, 2020
Cover [Abstract]
Entity Registrant NamePowerFleet, Inc.
Entity Central Index Key0001774170
Document Type10-Q
Document Period End DateJun. 30,
2020
Amendment Flagfalse
Current Fiscal Year End Date--12-31
Entity Current Reporting StatusYes
Entity Interactive Data CurrentYes
Entity Filer CategoryNon-accelerated Filer
Entity Small Business Flagtrue
Entity Emerging Growth Companyfalse
Entity Shell Companyfalse
Entity Common Stock, Shares Outstanding31,112,948
Document Fiscal Period FocusQ2
Document Fiscal Year Focus2020

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in ThousandsJun. 30, 2020Dec. 31, 2019
ASSETS
Cash and cash equivalents $ 21,469 $ 16,395 [1]
Restricted cash308 308 [1]
Accounts receivable, net of allowance for doubtful accounts of $2,004 and $2,044 in 2019 and 2020, respectively22,842 27,016 [1]
Inventory, net15,337 16,381 [1]
Deferred costs - current3,568 3,720 [1]
Prepaid expenses and other current assets5,717 7,370 [1]
Total current assets69,241 71,190 [1]
Deferred costs - less current portion3,337 4,810 [1]
Fixed assets, net6,984 8,240 [1]
Goodwill88,872 89,068 [1]
Intangible assets, net33,941 36,639 [1]
Right of use asset8,490 7,024 [1]
Severance payable fund3,510 3,530 [1]
Other assets2,573 2,532 [1]
Total assets216,948 223,033 [1]
Current liabilities:
Short-term bank debt and current maturities of long-term debt4,328 3,373 [1]
Note payable5,000 5,000
Accounts payable and accrued expenses20,962 24,880 [1]
Deferred revenue - current8,036 7,687
Lease liability - current2,012 2,460 [1]
Total current liabilities40,338 43,400 [1]
Long-term debt, less current maturities24,001 43,400
Deferred revenue - less current portion6,534 8,544
Lease liability - less current portion6,676 4,779 [1]
Accrued severance payable4,200 4,062 [1]
Deferred tax liability4,506 3,791 [1]
Other long-term liabilities761 369 [1]
Total liabilities87,016 91,460 [1]
Commitments and Contingencies (note 21) [1]
MEZZANINE EQUITY
Convertible redeemable Preferred stock: Series A - 100 shares authorized, $0.01 par value; 53 shares issued and outstanding49,656 47,393 [1]
STOCKHOLDERS' EQUITY
Preferred stock; authorized 50 shares, $0.01 par value;[1]
Common stock; authorized 75,000 shares, $0.01 par value; 30,804 and 32,153 shares issued at December 31, 2019 and June 30, 2020, respectively; shares outstanding, 29,743 and 31,019 at December 31, 2019 and June 30, 2020, respectively322 308 [1]
Additional paid-in capital206,405 201,813 [1]
Accumulated deficit(118,195)(112,143)[1]
Accumulated other comprehensive gain (loss)(1,655)265 [1]
Treasury stock; 1,061 and 1,134 common shares at cost at December 31, 2019 and June 30, 2020, respectively(6,557)(6,053)[1]
Total PowerFleet, Inc. stockholders' equity80,320 84,190 [1]
Non-controlling interest(44)(10)[1]
Total equity80,276 84,180
Total liabilities and stockholders' equity $ 216,948 $ 223,033 [1]
[1]Derived from audited balance sheet as of December 31, 2019.

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in ThousandsJun. 30, 2020Dec. 31, 2019
Statement of Financial Position [Abstract]
Allowance for doubtful accounts, accounts receivable current $ 2,004 $ 2,004
Series A Convertible redeemable preferred stock, shares authorized100,000 100,000
Series A Convertible redeemable preferred stock, par value $ 0.01 $ 0.01
Series A Convertible redeemable preferred stock, shares issued53,000 53,000
Series A Convertible redeemable preferred stock, shares outstanding53,000 53,000
Preferred stock, shares authorized50,000 50,000
Preferred stock, par value $ 0.01 $ 0.01
Common stock, shares authorized75,000,000 75,000,000
Common stock, par value $ 0.01 $ 0.01
Common stock, shares issued32,153,000 30,804,000
Common stock, shares outstanding31,019,000 29,743,000
Treasury stock, shares1,134,000 1,061,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands3 Months Ended6 Months Ended
Jun. 30, 2020Jun. 30, 2019Jun. 30, 2020Jun. 30, 2019
Revenues
Total revenues $ 25,765 $ 16,274 $ 56,564 $ 29,885
Cost of revenue:
Total Cost of revenue11,722 9,203 27,655 15,796
Gross profit14,043 7,071 28,909 14,089
Operating expenses:
Selling, general and administrative expenses12,166 5,993 27,269 12,103
Research and development expenses2,582 2,024 5,754 3,684
Acquisition-related expenses 1,613 3,062
Total Operating expenses14,748 9,630 33,023 18,849
Loss from operations(705)(2,559)(4,114)(4,760)
Interest income17 8 31 73
Interest expense(1,484)(26)(1,339)(46)
Other (expense) income, net5 (8)7 (46)
Net loss before income taxes(2,167)(2,585)(5,415)(4,779)
Income taxes(460) (653)
Net loss before non-controlling interest(2,627)(2,585)(6,068)(4,779)
Non-controlling interest1 16
Preferred stock dividends(1,140) (2,263)
Net loss attributable to common stockholders $ (3,766) $ (2,585) $ (8,315) $ (4,779)
Net loss per share - basic and diluted $ (0.13) $ (0.15) $ (0.28) $ (0.27)
Weighted average common shares outstanding - basic and diluted29,399 17,678 29,216 17,650
Products [Member]
Revenues
Total revenues $ 9,394 $ 10,643 $ 22,602 $ 17,892
Cost of revenue:
Total Cost of revenue6,023 7,062 15,325 11,301
Services [Member]
Revenues
Total revenues16,371 5,631 33,962 11,993
Cost of revenue:
Total Cost of revenue $ 5,699 $ 2,141 $ 12,330 $ 4,495

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands3 Months Ended6 Months Ended
Jun. 30, 2020Jun. 30, 2019Jun. 30, 2020Jun. 30, 2019
Statement of Comprehensive Income [Abstract]
Net loss attributable to common stockholders $ (3,766) $ (2,585) $ (8,315) $ (4,779)
Other comprehensive (loss) income, net:
Unrealized gain on investments 9
Reclassification of net realized investment loss included in net loss 38
Foreign currency translation adjustment406 (46)(1,920)(58)
Total other comprehensive income (loss)406 (46)(1,920)(11)
Comprehensive loss $ (3,360) $ (2,631) $ (10,235) $ (4,790)

Condensed Consolidated Statem_3

Condensed Consolidated Statement of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in ThousandsCommon Stock [Member]Additional Paid-in Capital [Member]Accumulated Deficit [Member]Accumulated Other Comprehensive (Loss) Income [Member]Treasury Stock [Member]Non-controlling Interest [Member]Total
Balance at Dec. 31, 2018 $ 192 $ 138,693 $ (101,180) $ (435) $ (5,736) $ 31,534
Balance, shares at Dec. 31, 201819,178,000
Net loss attributable to common stockholders (2,194) (2,194)
Foreign currency translation adjustment (12) (12)
Issuance of restricted shares $ 1 (1)
Issuance of restricted shares, shares81
Shares issued pursuant to exercise of stock options47 47
Shares repurchased pursuant to vesting of restricted stock (226) (226)
Stock based compensation583 583
Balance at Mar. 31, 2019 $ 193 139,275 (103,374)(400)(5,962)29,732
Balance, shares at Mar. 31, 201919,259,000
Balance at Dec. 31, 2018 $ 192 138,693 (101,180)(435)(5,736)31,534
Balance, shares at Dec. 31, 201819,178,000
Net loss attributable to common stockholders(4,779)
Reclassification of realized losses on investments, net of unrealized amounts47
Balance at Jun. 30, 2019 $ 193 140,051 (105,959)(446)(5,981)27,860
Balance, shares at Jun. 30, 201919,473,000
Balance at Mar. 31, 2019 $ 193 139,275 (103,374)(400)(5,962)29,732
Balance, shares at Mar. 31, 201919,259,000
Net loss attributable to common stockholders (2,585) (2,585)
Foreign currency translation adjustment (46) (46)
Issuance of restricted shares $ 2 (2)
Issuance of restricted shares, shares164,000
Shares issued pursuant to exercise of stock options 177 177
Shares issued pursuant to exercise of stock options, shares50,000
Shares repurchased pursuant to vesting of restricted stock (19)(19)
Stock based compensation 601 601
Balance at Jun. 30, 2019 $ 193 140,051 (105,959)(446)(5,981)27,860
Balance, shares at Jun. 30, 201919,473,000
Balance at Dec. 31, 2019 $ 308 201,813 (112,143)265 (6,053)(10)84,180
Balance, shares at Dec. 31, 201930,804,000
Net loss attributable to common stockholders(1,123)(3,426) (4,549)
Net loss attributable to non-controlling interest(15)(15)
Foreign currency translation adjustment(2,326)(20)(2,346)
Issuance of restricted shares
Issuance of restricted shares, shares40,000,000
Forfeiture of restricted shares
Forfeiture of restricted shares, shares(32,000,000)
Vesting of restricted stock units $ 1 (1)
Vesting of restricted stock units, shares110,000,000
Other 62 62
Shares issued pursuant to exercise of stock options $ 1 382 383
Shares issued pursuant to exercise of stock options, shares90,000,000
Shares withheld pursuant to exercise of stock options $ (256) $ (256)
Shares withheld pursuant to vesting of restricted stock (232) (232)
Stock based compensation $ 1,155 $ 1,155
Balance at Mar. 31, 2020 $ 310 202,288 (115,569)(2,061)(6,541)(45)78,382
Balance, shares at Mar. 31, 202031,012,000
Balance at Dec. 31, 2019 $ 308 201,813 (112,143)265 (6,053)(10)84,180
Balance, shares at Dec. 31, 201930,804,000
Net loss attributable to common stockholders(8,315)
Reclassification of realized losses on investments, net of unrealized amounts
Balance at Jun. 30, 2020 $ 322 206,405 (118,195)(1,655)(6,557)(44)80,276
Balance, shares at Jun. 30, 202032,153,000
Balance at Mar. 31, 2020 $ 310 202,288 (115,569)(2,061)(6,541)(45)78,382
Balance, shares at Mar. 31, 202031,012,000
Net loss attributable to common stockholders (1,140)(2,626) (3,766)
Net loss attributable to non-controlling interest (1)(1)
Foreign currency translation adjustment 406 2 406
Issuance of restricted shares $ 3 $ (3)
Issuance of restricted shares, shares276,000
Forfeiture of restricted shares, shares(12,000)
Vesting of restricted stock units, shares(17,000)
Shares issued pursuant to exercise of stock options $ 1 $ 215 $ 216
Shares issued pursuant to exercise of stock options, shares50,000
Shares withheld pursuant to vesting of restricted stock (16) (16)
Common shares issued under the 2020 ATM $ 8 $ 4,033 $ 4,041
Common shares issued under the 2020 ATM,shares810,000
Stock based compensation 1,012 1,012
Balance at Jun. 30, 2020 $ 322 $ 206,405 $ (118,195) $ (1,655) $ (6,557) $ (44) $ 80,276
Balance, shares at Jun. 30, 202032,153,000

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands6 Months Ended
Jun. 30, 2020Jun. 30, 2019
Cash flows from operating activities:
Net loss before non-controlling interest $ (6,068) $ (4,779)
Adjustments to reconcile net loss to cash (used in) provided by operating activities:
Inventory reserve126 93
Stock based compensation expense2,086 1,184
Depreciation and amortization4,050 852
Right of use assets, non-cash lease expense1,437 344
Change in contingent consideration 47
Bad debt expense245 110
Deferred income taxes653
Other non-cash items(35)29
Changes in:
Accounts receivable3,144 (1,697)
Inventory1,111 (2,231)
Prepaid expenses and other assets2,333 487
Deferred costs1,624 (609)
Deferred revenue(2,311)694
Accounts payable and accrued expenses(2,602)3,578
Lease liabilities(1,496)(384)
Accrued severance payable, net118
Net cash (used in) provided by operating activities4,415 (2,282)
Cash flows from investing activities:
Acquisitions, net of cash assumed (3,800)
Proceeds from sale of property and equipment35
Capital expenditures(822)(396)
Purchases of investments (99)
Proceeds from the sale and maturities of investments 4,638
Net cash provided by (used in) investing activities(787)343
Cash flows from financing activities:
Net proceeds from stock offering4,041
Repayment of long-term debt(991)
Short-term bank credit, net(357)
Proceeds from exercise of stock options342 177
Common stock repurchased - vesting of restricted stock(248)(245)
Net cash (used in) provided by financing activities2,787 (68)
Effect of foreign exchange rate changes on cash and cash equivalents(1,341)(54)
Net (decrease) increase in cash, cash equivalents and restricted cash5,074 (2,061)
Cash, cash equivalents and restricted cash - beginning of period16,703 10,466
Cash, cash equivalents and restricted cash - end of period21,777 8,405
Reconciliation of cash, cash equivalents, and restricted cash, beginning of period
Cash and cash equivalents16,395 [1]10,159
Restricted cash308 [1]307
Cash, cash equivalents, and restricted cash, beginning of period16,703 10,466
Cash and cash equivalents21,469 8,098
Restricted cash308 307
Cash, cash equivalents, and restricted cash, end of period21,777 8,405
Cash paid for:
Taxes38
Interest934 56
Noncash investing and financing activities:
Unrealized gain on investments 47
Value of shares withheld pursuant to exercise of stock options $ 256
[1]Derived from audited balance sheet as of December 31, 2019.

Description of the Company and

Description of the Company and Basis of Presentation6 Months Ended
Jun. 30, 2020
Accounting Policies [Abstract]
Description of the Company and Basis of PresentationNOTE 1 - DESCRIPTION OF THE COMPANY AND
BASIS OF PRESENTATION Description of the Company As described more fully in Note 4, on October
3, 2019, PowerFleet, Inc. (together with its subsidiaries, “PowerFleet,” the “Company,” “we,”
“our” or “us”) completed the Transactions (as defined below) contemplated by (i) the Agreement and Plan
of Merger, dated as of March 13, 2019 (the “Merger Agreement”), by and among I.D. Systems, Inc., a Delaware corporation
(“I.D. Systems”), the Company, Pointer Telocation Ltd., a private company limited by shares formed under the laws of
the State of Israel (“Pointer”), PowerFleet Israel Ltd. (f/k/a Powerfleet Israel Holding Company Ltd.), a private company
limited by shares formed under the laws of the State of Israel and a wholly-owned subsidiary of the Company (“PowerFleet
Israel”), and Powerfleet Israel Acquisition Company Ltd., a private company limited by shares formed under the laws of the
State of Israel and a wholly-owned subsidiary of PowerFleet Israel prior to the Transactions (“Pointer Merger Sub”),
and (ii) the Investment and Transaction Agreement, dated as of March 13, 2019, as amended by Amendment No. 1 thereto dated as of
May 16, 2019, Amendment No. 2 thereto dated as of June 27, 2019 and Amendment No. 3 thereto dated as of October 3, 2019 (the “Investment
Agreement,” and together with the Merger Agreement, the “Agreements”), by and among I.D. Systems, the Company,
PowerFleet US Acquisition Inc., a Delaware corporation and a wholly-owned subsidiary of the Company prior to the Transactions (“I.D.
Systems Merger Sub”), and ABRY Senior Equity V, L.P., ABRY Senior Equity Co-Investment Fund V, L.P. and ABRY Investment Partnership,
L.P. (the “Investors”), affiliates of ABRY Partners II, LLC. As a result of the transactions contemplated by the Agreements
(the “Transactions”), I.D. Systems and PowerFleet Israel each became direct, wholly-owned subsidiaries of the Company
and Pointer became an indirect, wholly-owned subsidiary of the Company. Prior to the Transactions, PowerFleet had no material assets,
did not operate any business and did not conduct any activities, other than those incidental to its formation and matters contemplated
by the Agreements. I.D. Systems was determined to be the accounting acquirer in the Transactions. As a result, the historical financial
statements of I.D. Systems for the periods prior to the Transactions are considered to be the historical financial statements of
PowerFleet and the results of Pointer have been included in the Company’s consolidated financial statements from the date
of the Transactions. The Company is a global leader and provider
of subscription-based wireless Internet-of-Things (IoT) and machine-to-machine (M2M) solutions for securing, controlling, tracking,
and managing high-value enterprise assets such as industrial trucks, tractor trailers, containers, cargo, and vehicles and truck
fleets. I.D. Systems, Inc. was incorporated in the
State of Delaware in 1993. PowerFleet, Inc. was incorporated in the State of Delaware in February 2019 for the purpose of effectuating
the Transactions and commenced operations on October 3, 2019, upon the closing of the Transactions. Impact of COVID-19 The global outbreak of a novel strain of coronavirus,
COVID-19, and mitigation efforts by governments to attempt to control its spread, has resulted in significant economic disruption
and continues to adversely impact the broader global economy. The extent of the impact on the Company’s business and financial
results will depend largely on future developments that cannot be accurately predicted at this time, including the duration of
the spread of the outbreak, the extent and effectiveness of containment actions and the impact of these and other factors on capital
and financial markets and the related impact on the financial circumstances of our employees, customers and suppliers. As of the
date of these unaudited interim condensed consolidated financial statements, the full extent to which the COVID-19 pandemic may
materially impact the Company’s business, results of operations and financial condition is uncertain. Basis of presentation The unaudited interim condensed consolidated
financial statements include the accounts of the Company and its wholly-owned and majority-owned subsidiaries. All material intercompany
balances and transactions have been eliminated in consolidation. The accompanying unaudited condensed consolidated financial statements
have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”)
for interim financial information and the instructions to Form 10-Q. Accordingly, they do not include all of the information and
footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, such statements include all adjustments
(consisting only of normal recurring items) which are considered necessary for a fair presentation of the consolidated financial
position of the Company as of June 30, 2020, the consolidated results of its operations for the three- and six-month periods ended
June 30, 2019 and 2020, the consolidated change in stockholders’ equity for the three-month periods ended March 31, and June
30, 2019 and 2020 and the consolidated cash flows for the six-month periods ended June 30, 2019 and 2020. The results of operations
for the three- and six-month period ended June 30, 2020 are not necessarily indicative of the operating results for the full year.
These financial statements should be read in conjunction with the audited consolidated financial statements and related disclosures
for the year ended December 31, 2019 included in the Company’s Annual Report on Form 10-K for the year then ended. Liquidity As of June 30, 2020, the Company had cash and
cash equivalents of $21,469 and working capital of $28,903. The Company’s primary sources of cash are cash flows from operating
activities, its holdings of cash, cash equivalents and investments from the sale of its capital stock and borrowings under its
credit facility. To date, the Company has not generated sufficient cash flows solely from operating activities to fund its operations. In addition, PowerFleet Israel and Pointer
are party to a Credit Agreement (the “Credit Agreement”) with Bank Hapoalim B.M. (“Hapoalim”), pursuant
to which Hapoalim provided PowerFleet Israel with two senior secured term loan facilities in an aggregate principal amount of $30,000
(comprised of two facilities in the aggregate principal amount of $20,000 and $10,000) and a five-year revolving credit facility
to Pointer in an aggregate principal amount of $10,000. The proceeds of the term loan facilities were used to finance a portion
of the cash consideration payable in the Company’s acquisition of Pointer. The proceeds of the revolving credit facility
may be used by Pointer for general corporate purposes. The Company has not borrowed under the revolving credit facility as of June
30, 2020. See Note 12 for additional information. The Company has on file a shelf registration
statement on Form S-3 that was declared effective by the Securities and Exchange Commission (the “SEC”) on November
27, 2019. Pursuant to the shelf registration statement, the Company may offer to the public from time to time, in one or more offerings,
up to $60,000 of its common stock, preferred stock, warrants, debt securities, and units, or any combination of the foregoing,
at prices and on terms to be determined at the time of any such offering. The specific terms of any future offering will be determined
at the time of the offering and described in a prospectus supplement that will be filed with the SEC in connection with such offering. On May 14, 2020, we entered into an equity
distribution agreement (the “Sales Agreement”) with Canaccord Genuity LLC, (“Canaccord”), pursuant
to which we may offer and sell, from time to time, through an “at-the-market offering” program, with Canaccord as
sales agent, shares of our common stock having an aggregate offering price of up to $25 million. On August 4, 2020, we
provided written notice to Canaccord of our election to terminate the Sales Agreement. The termination will be effective as of
August 14, 2020. See Note 14 for additional information. The Company believes that its available working
capital, anticipated level of future revenues and expected cash flows from operations will provide sufficient funds to cover capital
requirements through at least August 14, 2021.

Use of Estimates

Use of Estimates6 Months Ended
Jun. 30, 2020
Capital Leases Future Minimum Payments Receivable Noncurrent
Use of EstimatesNOTE 2 – USE OF ESTIMATES The preparation of financial statements in
conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts
of revenues and expenses during the reporting period. The Company continually evaluates estimates used in the preparation of the
financial statements for reasonableness. The most significant estimates relate to measurements of fair value of assets acquired
and liabilities assumed, realization of deferred tax assets, the impairment of tangible and intangible assets, the assessment of
the Company’s incremental borrowing rate used to determine its right-of-use asset and lease liability, deferred revenue and
stock-based compensation costs. Actual results could differ from those estimates. As of June 30, 2020, the impact of the outbreak
of COVID-19 continues to unfold. As a result, many of our estimates and assumptions required increased judgment and carry a higher
degree of variability and volatility. As events continue to evolve and additional information becomes available, our estimates
may change materially in future periods.

Cash and Cash Equivalents

Cash and Cash Equivalents6 Months Ended
Jun. 30, 2020
Cash and Cash Equivalents [Abstract]
Cash and Cash EquivalentsNOTE 3 – CASH AND CASH EQUIVALENTS The Company considers all highly liquid debt
instruments with an original maturity of three months or less when purchased to be cash equivalents unless they are legally or
contractually restricted. The Company’s cash and cash equivalent balances exceed Federal Deposit Insurance Corporation (FDIC)
and other local jurisdictional limits. Restricted cash at December 31, 2019 and June 30, 2020 consists of cash held in escrow for
purchases from a vendor.

Acquisitions

Acquisitions6 Months Ended
Jun. 30, 2020
Business Combinations [Abstract]
AcquisitionsNOTE 4 - ACQUISITIONS Pointer Transactions On October 3, 2019 (the “Closing Date”),
in connection with the completion of the Transactions and pursuant to the terms of the Investment Agreement, I.D. Systems reorganized
into a new holding company structure by merging I.D. Systems Merger Sub with and into I.D. Systems (the “I.D. Systems Merger”),
with I.D. Systems surviving as a direct, wholly-owned subsidiary of PowerFleet. Also on October 3, 2019, pursuant to the terms
of the Merger Agreement, Pointer Merger Sub merged with and into Pointer (the “Pointer Merger”), with Pointer surviving
as a direct, wholly-owned subsidiary of PowerFleet Israel and an indirect, wholly-owned subsidiary of PowerFleet. As a result of
the Transactions, I.D. Systems and PowerFleet Israel each became direct, wholly-owned subsidiaries of PowerFleet and Pointer became
an indirect, wholly-owned subsidiary of PowerFleet. In addition, as a result of the Transactions, PowerFleet became a publicly
traded corporation and former I.D. Systems stockholders and former Pointer shareholders received common stock of PowerFleet. I.D.
Systems common stock ceased trading on the Nasdaq Global Market and Pointer ordinary shares ceased trading on the Nasdaq Capital
Market and the Tel Aviv Stock Exchange (“TASE”), following the close of trading on October 2, 2019 and at the effectiveness
of the Pointer Merger on October 3, 2019, respectively, and PowerFleet common stock commenced trading on the Nasdaq Global Market
on October 3, 2019 and on the TASE on October 6, 2019, in each case under the symbol “PWFL”. At the effective time of the I.D. Systems Merger
(the “I.D. Systems Merger Effective Time”), each share of I.D. Systems common stock outstanding immediately prior to
such time (other than any I.D. Systems common stock owned by I.D. Systems immediately prior to the I.D. Systems Merger Effective
Time) was converted automatically into the right to receive one share of PowerFleet common stock. At the effective time of the
Pointer Merger (the “Pointer Merger Effective Time”), each Pointer ordinary share outstanding immediately prior to
such time (other than Pointer ordinary shares owned, directly or indirectly, by I.D. Systems, PowerFleet or any of their subsidiaries
or Pointer or any of its wholly-owned subsidiaries immediately prior to the Pointer Merger Effective Time) was cancelled in exchange
for $8.50 in cash, without interest (the “Cash Consideration”), and 1.272 shares of PowerFleet common stock (the “Stock
Consideration,” and together with the Cash Consideration, the “Pointer Merger Consideration”). I.D. Systems stock options and restricted stock
awards that were outstanding immediately prior to the I.D. Systems Merger Effective Time were converted automatically into equivalent
PowerFleet awards on the same terms and conditions applicable to such I.D. Systems stock options and restricted stock awards prior
to the I.D. Systems Merger Effective Time. At the Pointer Merger Effective Time, each
award of options to purchase Pointer ordinary shares that was outstanding and unvested immediately prior to such time was cancelled
and substituted with options to purchase shares of PowerFleet common stock under the Company’s 2018 Incentive Plan on the
same material terms and conditions as were applicable to the corresponding option immediately prior to the Pointer Merger Effective
Time, except that (i) the number of shares of PowerFleet common stock underlying such substituted option is equal to the product
of (A) the number of Pointer ordinary shares underlying such option immediately prior to the Pointer Merger Effective Time multiplied
by (B) 2.544, with any fractional shares rounded down to the nearest whole number of shares of PowerFleet common stock, and (ii)
the per-share exercise price is equal to the quotient obtained by dividing (A) the exercise price per Pointer ordinary share subject
to such option immediately prior to the Pointer Merger Effective Time by (B) 2.544 (rounded up to the nearest whole cent). At the Pointer Merger Effective Time, each
award of options to purchase Pointer ordinary shares that was outstanding and vested immediately prior to such time was cancelled
in exchange for the right to receive the product of (i) the excess, if any, of (A) the Pointer Merger Consideration (allocated
between the Cash Consideration and the Stock Consideration in the same proportion as for holders of Pointer ordinary shares), over
(B) the exercise price per Pointer ordinary share subject to such option, multiplied by (ii) the total number of Pointer ordinary
shares underlying such option. If the exercise price of a vested option was equal to or greater than the consideration payable
in respect of a vested option, such option was cancelled without payment. At the Pointer Merger Effective Time, each
award of restricted stock units of Pointer (a “Pointer RSU”) that was outstanding and vested immediately prior to such
time was cancelled in exchange for the right to receive the Pointer Merger Consideration (allocated between the Cash Consideration
and the Stock Consideration in the same proportion as for holders of Pointer ordinary shares). Each Pointer RSU that was outstanding
and unvested immediately prior to such time was cancelled and substituted with restricted stock units under the 2018 Plan representing
the right to receive, on the same material terms and conditions as were applicable under such Pointer RSU immediately prior to
the Pointer Merger Effective Time, that number of shares of PowerFleet common stock equal to the product of (i) the number of Pointer
ordinary shares underlying such Pointer RSU immediately prior to the Pointer Merger Effective Time multiplied by (ii) 2.544, with
any fractional shares rounded down to the nearest lower whole number of shares of PowerFleet common stock. Total consideration for the Transactions of
$130,416 included (i) $71,874 in cash paid at closing, (ii) 10,756 shares of PowerFleet common stock issued at closing with a fair
value of $58,081 and (iii) $461 for share-based awards assumed. The Cash Consideration was financed using (i)
net proceeds of the issuance and sale by PowerFleet of 50 shares of Series A Preferred Stock to the Investors for an aggregate
purchase price of $50,000 pursuant to the terms of the Investment Agreement, and (ii) term loan borrowings by PowerFleet Israel
on the Closing Date of $30,000 under the Credit Agreement. Pointer is a provider of telematics and mobile
IoT solutions to the automotive, insurance and logistics (cargo, assets and containers) industries. Pointer’s cloud-based
software-as-a-service (SaaS) platform extracts and captures data from an organization’s mobility points, including drivers,
routes, points-of-interest, logistics network, vehicles, trailers, containers and cargo. The Transactions are expected to provide
the Company with operational synergies and access to a broader base of customers. The purchase method of accounting in accordance
with ASC805, Business Combinations The following table summarizes the preliminary
purchase price allocation based on estimated fair values of the net assets acquired at the acquisition date:
Accounts receivable $ 19,701
Inventory 8,666
Other assets 26,461
Customer relationships 15,610
Trademark and tradename 6,096
Technology 10,911
Goodwill (a) 78,446
Less: Current liabilities assumed (21,055 )
Less: Non current liabilities assumed (14,420 )
Net assets acquired $ 130,416
(a) The goodwill is not deductible for tax purposes. The results of operations of Pointer have been
included in the consolidated statement of operations as of the effective date of the Transactions. The following table represents the combined
pro forma revenue and earnings for the six-month period ended June 30, 2019:
Three-Months Ended Six-Months Ended
June 30, 2019 June 30, 2019
Historical Pro Forma Historical Pro Forma
(Unaudited) (Unaudited)
Revenues $ 16,274 $ 34,020 $ 29,885 $ 65,276
Operating loss (2,559 ) (2,229 ) (4,760 ) (4,941 )
Net loss per share - basic and diluted $ (0.15 ) $ (0.16 ) $ (0.27 ) $ (0.16 ) The combined pro forma revenue and earnings
for the six-month period ended June 30, 2019 for the Transactions were prepared as though such transactions had occurred as of
January 1, 2019. The pro forma results do not include any anticipated cost synergies or other effects of the planned integration
of Pointer. This summary is not necessarily indicative of what the results of operations would have been had the Transactions occurred
during such period, nor does it purport to represent results of operations for any future periods. CarrierWeb Acquisitions On January 30, 2019, the Company completed
the acquisition (the “CarrierWeb US Acquisition”) of substantially all of the assets of CarrierWeb, L.L.C. (“CarrierWeb”),
an Atlanta-based provider of real-time in-cab mobile communications technology, electronic logging devices, two-way refrigerated
command and control, and trailer tracking. Aggregate consideration for the CarrierWeb US Acquisition was $3,500, consisting of
(i) a closing cash payment of $2,800 which consisted of cash of $2,150 and a credit bid by the Company in the amount of the aggregate
principal amount plus accrued and unpaid interest outstanding under a $650 debtor-in-possession loan made by the Company to CarrierWeb
on January 11, 2019, and (ii) a $700 payment in April 2019, when CarrierWeb Services Ltd. (“CarrierWeb Ireland”) was
restored to the Register of Companies in Ireland. The CarrierWeb US Acquisition was subject to the entry of a sale order by the
United States Bankruptcy Court for the Northern District of Georgia approving such acquisition. The sale order was entered on January
28, 2019. In connection with the restoration of CarrierWeb Ireland to the Register of Companies in Ireland, the Company also made
certain loans to CarrierWeb Ireland in the aggregate principal amount of $300. On July 30, 2019, the Company completed the
acquisition (the “CarrierWeb Ireland Acquisition” and together with the CarrierWeb US Acquisition, the “CarrierWeb
Acquisitions”) of substantially all of the assets of CarrierWeb Ireland, an affiliate of CarrierWeb, from e*freightrac Holding
B.V., the owner of the outstanding equity of CarrierWeb Ireland. Consideration for the CarrierWeb Ireland Acquisition included
(i) $550 in cash paid at closing, and (ii) 127 shares of the Company’s common stock, less (1) 56 shares for the satisfaction
of aggregate principal amount plus accrued and unpaid interest outstanding under $300 loans, less (2) 44 shares held back with
an estimated fair value of $250, which were released in November 2019. The assets the Company acquired in the CarrierWeb
Acquisitions have been integrated into the Company’s products. In connection with the CarrierWeb Acquisitions, the Company
offered employment to all of the former employees of CarrierWeb and CarrierWeb Ireland. The CarrierWeb Acquisitions allow the Company
to offer a full complement of highly-integrated logistics technology solutions to its current customers and prospects and immediately
add customers and subscriber units. For the three- and six-month periods ended June 30, 2019, the Company incurred acquisition-related
expenses of approximately $30 and $160, respectively, which are included in acquisition-related fees. The purchase method of accounting in accordance
with ASC805, Business Combinations The following table summarizes the final purchase
price allocation of CarrierWeb and CarrierWeb Ireland based on the fair values of the net assets acquired at the acquisition date:
Accounts receivable 192
Inventory 200
Other assets 26
Customer relationships 531
Trademark and tradename 90
Patents 628
Goodwill (a) 3,108
Net assets acquired $ 4,775
(a) The goodwill is fully deductible for tax purposes. The results of operations from each of the
CarrierWeb Acquisitions have been included in the consolidated statement of operations as of the effective date of each such acquisition.
For the three- and six-month periods ended June 30, 2019, the CarrierWeb Acquisitions contributed approximately $1,348 and $1,976,
respectively, to the Company’s revenues. Operating income contributed by the CarrierWeb Acquisitions was not separately identifiable
due to Company’s integration activities and is impracticable to provide.

Revenue Recognition

Revenue Recognition6 Months Ended
Jun. 30, 2020
Revenue from Contract with Customer [Abstract]
Revenue RecognitionNOTE 5 - REVENUE RECOGNITION The Company and its subsidiaries generate revenue
from sales of systems and products and from customer SaaS and hosting infrastructure fees. Revenue is measured as the amount of
consideration the Company expects to receive in exchange for transferring goods or providing services. Sales, value add, and other
taxes the Company collects concurrently with revenue-producing activities are excluded from revenue. Incidental items that are
immaterial in the context of the contract are recognized as expense. The expected costs associated with the Company’s base
warranties continue to be recognized as expense when the products are sold (see Note 13). Revenue is recognized when performance obligations
under the terms of a contract with our customer are satisfied. Product sales are recognized at a point in time when title transfers,
when the products are shipped, or when control of the system is transferred to the customer, which usually is upon delivery of
the system and when contractual performance obligations have been satisfied. For products which do not have stand-alone value to
the customer separate from the SaaS services provided, the Company considers both hardware and SaaS services a bundled performance
obligation. Under the applicable accounting guidance, all of the Company’s billings for equipment and the related cost for
these systems are deferred, recorded, and classified as a current and long-term liability and a current and long-term asset, respectively.
The deferred revenue and cost are recognized over the service contract life, ranging from one to five years, beginning at the time
that a customer acknowledges acceptance of the equipment and service. The Company recognizes revenue for remotely
hosted SaaS agreements and post-contract maintenance and support agreements beyond our standard warranties over the life of the
contract. Revenue is recognized ratably over the service periods and the cost of providing these services is expensed as incurred.
Amounts invoiced to customers which are not recognized as revenue are classified as deferred revenue and classified as short-term
or long-term based upon the terms of future services to be delivered. Deferred revenue also includes prepayment of extended maintenance,
hosting and support contracts. The Company earns other service revenues from
installation services, training and technical support services which are short-term in nature and revenue for these services are
recognized at the time of performance or right to invoice. The Company recognizes revenue on non-recurring
engineering services over time, on an input-cost method performance basis, as determined by the relationship of actual labor and
material costs incurred to date compared to the estimated total project costs. Estimates of total project costs are reviewed and
revised during the term of the project. Revisions to project costs estimates, where applicable, are recorded in the period in which
the facts that give rise to such changes become known. The Company also derives revenue from leasing
arrangements. Such arrangements provide for monthly payments covering product or system sale, maintenance, support and interest.
These arrangements meet the criteria to be accounted for as sales-type leases. Accordingly, an asset is established for the “sales-type
lease receivable” at the present value of the expected lease payments and revenue is deferred and recognized over the service
contract, as described above. Maintenance revenues and interest income are recognized monthly over the lease term. The Company’s contracts with customers
may include multiple performance obligations. For such arrangements, the Company allocates revenue to each performance obligation
based on its relative standalone selling price. The Company generally determines standalone selling prices based on observable
prices charged to customers or adjusted market assessment or using expected cost-plus margin when one is available. Adjusted market
assessment price is determined based on overall pricing objectives taking into consideration market conditions and entity specific
factors. The Company recognizes an asset for the incremental
costs of obtaining the contract arising from the sales commissions to employees because the Company expects to recover those costs
through future fees from the customers. The Company amortizes the asset over one to five years because the asset relates to the
services transferred to the customer during the contract term of one to five years. The Company does not disclose the value of
unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for
which the Company recognizes revenue at the amount to which the Company has the right to invoice for services performed. Deferred product costs consist of logistics
visibility solutions equipment costs deferred in accordance with our revenue recognition policy. The Company evaluates the realizability
of the carrying amount of the deferred contract costs. To the extent the carrying value of the deferred contract costs exceed the
contract revenue, an impairment loss will be recognized. The following table presents the Company’s
revenues disaggregated by revenue source for the three- and six-months ended June 30, 2019 and 2020:
Three Months Ended Six Months Ended
June 30, June 30,
2019 2020 2019 2020
Products $ 10,643 $ 9,394 $ 17,892 $ 22,602
Services 5,631 16,371 11,993 33,962
$ 16,274 $ 25,765 $ 29,885 $ 56,564 The balances of contract assets, and contract
liabilities from contracts with customers are as follows as of December 31, 2019 and June 30, 2020:
December 31, 2019 June 30, 2020
(Unaudited)
Assets:
Deferred contract costs $ 2,196 $ 1,735
Deferred logistics visibility solutions costs $ 8,530 $ 6,905
Liabilities:
Contract liabilities (1) $ 1,098 $ 794
Deferred revenue -other (1) 227 281
Deferred maintenance and SaaS revenue (1) 5,072 5,540
Deferred logistics visibility solutions product revenue (1) 10,932 8,749
17,329 15,364
Less: Deferred revenue and contract liabilities - Current portion (8,536 ) (8,608 )
Deferred revenue and contract liabilities - less current portion $ 8,793 $ 6,756
(1) The Company records deferred revenues when cash payments are received or due in advance of the Company’s performance. For the three- and six-month periods ended June 30, 2019 and 2020, the Company recognized revenue of $6,891 and $2,426, respectively, and $6,238 and $4,600, respectively, that was included in the deferred revenue balance at the beginning of each reporting period. The Company expects to recognize as revenue these deferred revenue balances before the year 2025, when the services are performed and, therefore, satisfies its performance obligation to the customers.

Prepaid Expenses and Other Asse

Prepaid Expenses and Other Assets6 Months Ended
Jun. 30, 2020
Prepaid Expense and Other Assets [Abstract]
Prepaid Expenses and Other AssetsNOTE 6 – PREPAID EXPENSES AND OTHER
ASSETS Prepaid expenses and other current assets consist
of the following:
December 31, 2019 June 30, 2020
(Unaudited)
Finance receivables, current $ 893 $ 740
Prepaid expenses 3,221 2,547
Contract assets 1,335 783
Other current assets 1,921 1,647
$ 7,370 $ 5,717

Inventory

Inventory6 Months Ended
Jun. 30, 2020
Inventory Disclosure [Abstract]
InventoryNOTE 7 - INVENTORY Inventory, which primarily consists of finished
goods and components used in the Company’s products, is stated at the lower of cost or net realizable value using the first-in
first-out (FIFO) method. Inventory is shown net of a valuation reserve of $487 at December 31, 2019, and $600 at June
30, 2020. Inventories consist of the following:
December 31, 2019 June 30, 2020
(Unaudited)
Components $ 8,183 $ 7,725
Work in process 210 61
Finished goods 7,988 7,551
$ 16,381 $ 15,337

Fixed Assets

Fixed Assets6 Months Ended
Jun. 30, 2020
Property, Plant and Equipment [Abstract]
Fixed AssetsNOTE 8 - FIXED ASSETS Fixed assets are stated at cost, less accumulated
depreciation and amortization, and are summarized as follows:
December 31, 2019 June 30, 2020
(Unaudited)
Installed products $ 3,180 1,425
Computer software 5,635 5,618
Computer and electronic equipment 6,231 4,497
Furniture and fixtures 1,364 1,434
Leasehold improvements 641 748
17,051 13,722
Accumulated depreciation and amortization (8,811 ) (6,738 )
$ 8,240 $ 6,984 Depreciation and amortization expense of fixed
assets for the three- and six-month periods ended June 30, 2019 was $190 and $379, respectively, and for the three- and six-month
periods ended June 30, 2020 was $651 and $1,386, respectively. This includes amortization of costs associated with
computer software for the three- and six-month periods ended June 30, 2019 of $133 and $266, respectively, and for the three-
and six-month periods ended June 30, 2020 of $130 and $261, respectively.

Intangible Assets and Goodwill

Intangible Assets and Goodwill6 Months Ended
Jun. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets and GoodwillNOTE 9 - INTANGIBLE ASSETS AND GOODWILL The following table summarizes identifiable
intangible assets of the Company as of December 31, 2019 and June 30, 2020:
Useful Gross Net
Lives Carrying Accumulated Carrying
June 30, 2020 (In Years) Amount Amortization Amount
Amortized:
Customer relationships 9 - 12 $ 19,264 $ (1,920 ) $ 17,344
Trademark and tradename 3 - 15 7,553 (890 ) 6,663
Patents 7 - 11 2,117 (1,548 ) 569
Technology 7 10,911 (1,903 ) 9,008
Favorable contract interest 4 388 (283 ) 105
Covenant not to compete 5 208 (121 ) 87
40,441 (6,665 ) 33,776
Unamortized:
Customer list 104 - 104
Trademark and Tradename 61 - 61
165 - 165
Total $ 40,606 $ (6,665 ) $ 33,941
Useful Gross Net
Lives Carrying Accumulated Carrying
December 31, 2019 (In Years) Amount Amortization Amount
Amortized:
Customer relationships 9 - 12 $ 19,299 $ (1,108 ) $ 18,191
Trademark and tradename 3 - 15 7,553 (488 ) 7,065
Patents 7 - 11 2,117 (1,436 ) 681
Technology 7 10,911 (634 ) 10,277
Favorable contract interest 4 388 (234 ) 154
Covenant not to compete 5 208 (102 ) 106
40,476 (4,002 ) 36,474
Unamortized:
Customer list 104 - 104
Trademark and Tradename 61 - 61
165 - 165
Total $ 40,641 $ (4,002 ) $ 36,639 At June 30, 2020, the weighted-average amortization
period for the intangible assets was 9.0 years. At June 30, 2020, the weighted-average amortization periods for customer relationships,
trademarks and trade names, patents, technology, favorable contract interests and covenant not to compete were 11.9, 4.5, 9.8,
7.0, 4.0 and 5.0 years, respectively. Amortization expense for the three- and six-month
periods ended June 30, 2019 was $280 and $473, respectively, and for the three- and six-month periods ended June 30, 2020 was $1,333
and $2,665, respectively. Estimated future amortization expense for each of the five succeeding fiscal years for these intangible
assets is as follows:
Year ending December 31:
2020 (remaining) $ 2,665
2021 5,153
2022 4,479
2023 4,434
2024 2,021
2025 1,894
Thereafter 13,130
$ 33,776 COVID-19 continues to adversely impact the
broader global economy and has caused significant volatility in financial markets. If there is a lack of recovery or further global
softening in certain markets, or a sustained decline in the value of the Company’s common stock, the Company may conclude
that indicators of impairment exist and would then be required to calculate whether or not an impairment exists for its goodwill,
other intangibles, and long-lived assets, the results of which could result in material impairment charges. For the six-month
period ended June 30, 2020, the Company did not identify any indicators of impairment.

Stock-Based Compensation

Stock-Based Compensation6 Months Ended
Jun. 30, 2020
Share-based Payment Arrangement [Abstract]
Stock-Based CompensationNOTE 10 - STOCK-BASED COMPENSATION Stock Option Plans In connection with the Company’s acquisition
of Pointer Telocation Ltd., the Company previously approved the grants of options to purchase 350,000 shares of the Company’s
common stock to Mr. Wolfe and options to purchase 150,000 shares of the Company’s common stock to Mr. Mavrommatis on March
13, 2019 (the “Signing Bonus Options”) and the grants of additional options to purchase 350,000 shares of the Company’s
common stock to Mr. Wolfe and additional options to purchase 150,000 shares of the Company’s common stock to Mr. Mavrommatis
on October 3, 2019 (the “Closing Bonus Options” and together with the Signing Bonus Options, the “Original Bonus
Options”). The Original Bonus Options were subject to the terms of the Company’s 2018 Incentive Plan (the “2018
Plan”), vested upon the attainment of adjusted EBITDA targets for the fiscal years ending December 31, 2020 and December
31, 2021 and became exercisable 180 days after vesting, subject to acceleration in the event of certain change of control transactions.
The Signing Bonus Options had an exercise price of $6.28 per share and the Closing Bonus Options had an exercise price of $6.00
per share. In response to the impact of COVID-19, the
Board terminated and cancelled the Original Bonus Options and approved the following grants to replace the Original Bonus Options:
(i) options to purchase 350,000 shares of the Company’s common stock to Mr. Wolfe and options to purchase 150,000 shares
of the Company’s common stock to Mr. Mavrommatis (the “New Signing Options”), which options are subject to the
terms of the 2018 Plan, have an exercise price of $6.28 per share, and will vest and become exercisable in full on December 31,
2022 if the volume weighted average price of the Company’s common stock during a consecutive 30 trading day period (the “30
Day VWAP”) reaches $12.00 at any point prior to December 31, 2022, and (ii) options to purchase 350,000 shares of the Company’s
common stock to Mr. Wolfe and options to purchase 150,000 shares of the Company’s common stock to Mr. Mavrommatis (the “New
Closing Options”), which options are subject to the terms of the 2018 Plan, have an exercise price of $6.00 per share, and
will vest and become exercisable immediately upon the Company achieving a 30 Day VWAP of $10.00. [A] Stock options: The following table summarizes the activity
relating to the Company’s stock options for the six-month period ended June 30, 2020:
December 31, 2019 Options Weighted- Weighted- Aggregate
Outstanding at beginning of year 4,078 $ 5.79
Granted 1,160 6.10
Exercised (140 ) 4.28
Forfeited or expired (1,305 ) 6.04
Outstanding at end of period 3,793 $ 5.85 9 years $ 161
Exercisable at end of period 925 $ 5.64 6 years $ 56 The fair value of each option grant on the
date of grant is estimated using the Black-Scholes option-pricing model reflecting the following weighted-average assumptions:
June 30,
2019 2020
Expected volatility 24.2 % 44.7 %
Expected life of options (in years) 3 6
Risk free interest rate 1.41 % 1.17 %
Dividend yield 0 % 0 %
Weighted average fair value of options granted during the period $ 2.72 $ 2.58 Expected volatility is based on historical
volatility of the Company’s common stock and the expected life of options is based on historical data with respect to employee
exercise periods. The Company valued the New Signing Options
and the New Closing Options market-based performance stock option awards using a Monte Carlo simulation model using a daily price
forecast over ten years until expiration utilizing Geometric Brownian Motion that considers a variety of factors including, but
not limited to, the Company’s common stock price, risk-free rate (0.70%), and expected stock price volatility (47%) over
the expected life of awards (6 years). The weighted average fair value of options granted during the period was $1.27. The Company recorded stock-based compensation
expense of $161 and $297 for the three- and six-month periods ended June 30, 2019, respectively, and $411 and $843 for the three-
and six-month periods ended June 30, 2020, respectively, in connection with awards made under the stock option plans. The fair value of options vested during the
six-month periods ended June 30, 2019 and 2020 was $271 and $1,012, respectively. The total intrinsic value of options exercised
during the six-month periods ended June 30, 2019 and 2020 was $112 and 225, respectively. As of June 30, 2020, there was approximately
$4,672 of unrecognized compensation cost related to non-vested options granted under the Company’s stock option plans. That
cost is expected to be recognized over a weighted-average period of 4.24 years. The Company estimates forfeitures at the time
of valuation and reduces expense ratably over the vesting period. This estimate is adjusted periodically based on the extent to
which actual forfeitures differ, or are expected to differ, from the previous estimate. [B] Restricted Stock Awards: The Company grants restricted stock to employees,
whereby the employees are contractually restricted from transferring the shares until they are vested. The stock is unvested at
the time of grant and, upon vesting, there are no legal restrictions on the stock. The fair value of each share is based on the
Company’s closing stock price on the date of the grant. A summary of all non-vested restricted stock for the three-month
period ended June 30, 2020 is as follows:
Number of Non-vested Shares Weighted-
Restricted stock, non-vested, beginning of year 877 $ 6.17
Granted 318 4.97
Vested (252 ) 6.16
Forfeited (50 ) 6.24
Restricted stock, non-vested, end of period 893 $ 5.75 The Company recorded stock-based compensation
expense of $440 and $887, respectively, for the three- and six-month periods ended June 30, 2019 and $499 and $1,048, respectively,
for the three- and six-month periods ended June 30, 2020, in connection with restricted stock grants. As of June 30, 2020, there
was $4,001 of total unrecognized compensation cost related to non-vested shares. That cost is expected to be recognized over a
weighted-average period of 2.4 years. [C] Restricted Stock Units: The Company also grants restricted stock units
(RSUs) to employees. The following table summarizes the activity relating to the Company’s restricted stock units for the
three-month period ended June 30, 2020:
Number of Restricted Stock Units Weighted-
Restricted stock units, non-vested, beginning of year 253 $ 5.60
Granted - -
Vested (127 ) 5.60
Forfeited (5 ) 5.60
Restricted stock units, non-vested, end of period 121 $ 5.60 The Company recorded stock-based compensation
expense of $-0- and $-0-, respectively, for the three- and six-month periods ended June 30, 2019 and $67 and $195, respectively,
for the three- and six-month periods ended June 30, 2020, in connection with the RSUs. As of June 30, 2020, there was $500 of
total unrecognized compensation cost related to non-vested RSUs. That cost is expected to be recognized over a weighted-average
period of 1.70 years.

Net Loss Per Share

Net Loss Per Share6 Months Ended
Jun. 30, 2020
Earnings Per Share [Abstract]
Net Loss Per ShareNOTE 11 - NET LOSS PER SHARE Net loss per share for the three- and six-month
periods ended June 30, 2019 and 2020 are as follows:
Three Months Ended Six Months Ended
June 30, June 30,
2019 2020 2019 2020
Basic and diluted loss per share
Net loss attributable to common stockholders $ (2,585 ) $ (3,766 ) $ (4,779 ) $ (8,315 )
Weighted-average common shares outstanding - basic and diluted 17,678 29,399 17,650 29,216
Net loss attributable to common stockholders - basic and diluted $ (0.15 ) $ (0.13 ) $ (0.27 ) $ (0.28 ) Basic loss per share is calculated by dividing
net loss attributable to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted
loss per share reflects the potential dilution assuming common shares were issued upon the exercise of outstanding options and
the proceeds thereof were used to purchase outstanding common shares. Dilutive potential common shares include outstanding stock
options, warrants and restricted stock and performance share awards. We include participating securities (unvested share-based
payment awards and equivalents that contain non-forfeitable rights to dividends or dividend equivalents) in the computation of
earnings per share pursuant to the two-class method. Our participating securities consist solely of preferred stock, which have
contractual participation rights equivalent to those of stockholders of unrestricted common stock. The two-class method of computing
earnings per share is an allocation method that calculates earnings per share for common stock and participating securities. During
periods of net loss, no effect is given to the participating securities because they do not share in the losses of the Company. The basic
and diluted weighted-average shares outstanding are the same in 2019 and 2020, since the effect from the potential exercise
of outstanding stock options, conversion of preferred stock, and vesting of restricted stock and restricted stock units totaling
2,652 and 12,027, respectively, would have been anti-dilutive due to the net loss.

Short-Term Bank Debt and Long-T

Short-Term Bank Debt and Long-Term Debt6 Months Ended
Jun. 30, 2020
Debt Disclosure [Abstract]
Short-Term Bank Debt and Long-Term DebtNOTE 12 - SHORT-TERM BANK DEBT AND LONG-TERM
DEBT
December 31, 2019 June 30, 2020
(Unaudited)
Short-term bank debt bearing interest at 17% per annum $ 685 $ 187
Current maturities of long-term debt $ 2,688 $ 4,141
Notes payable $ 5,000 $ 5,000
Long-term debt – less current maturities $ 26,515 $ 24,001 Notes payable In connection with the Transactions, the Company
issued the Notes to the Investors in the aggregate principal amount of $5,000 at the closing of the Transactions. The Notes bear
interest at 10% per annum, with an original maturity date of September 30, 2020 and may be prepaid in full subject to a prepayment
premium. The principal amount of, and accrued interest through the maturity date on, the Notes will convert automatically into
Series A Preferred Stock at the original issuance price thereof of $1,000.00 per share upon approval by the Company’s stockholders
in accordance with Nasdaq rules. On May 13, 2020, the Company and the Investors
amended and restated the Notes to, among other things, (i) remove the conversion feature of the Notes, (ii) provide for certain
mandatory prepayment obligations of the Company on or following October 1, 2020, and (iii) extend the maturity date of the Notes
to March 31, 2021. Long-term debt In connection with the Transactions, PowerFleet
Israel incurred $30,000 in term loan borrowings on the Closing Date under the Credit Agreement, pursuant to which Hapoalim agreed
to provide PowerFleet Israel with two senior secured term loan facilities in an aggregate principal amount of $30,000 (comprised
of two facilities in the aggregate principal amount of $20,000 and $10,000, respectively (the “Term A Facility” and
“Term B Facility”, respectively, and collectively, the “Term Facilities”)) and a five-year revolving credit
facility (the “Revolving Facility”) to Pointer in an aggregate principal amount of $10,000 (collectively, the “Credit
Facilities”). On the first anniversary of the Closing Date, the Company will be required to deposit in a separate restricted
deposit account the Israeli shekel (“NIS”) equivalent of $3,000. As of June 30, 2020, no amounts were outstanding under
the revolving credit facility. The Credit Facilities will mature on the date
that is five years from the Closing Date. The indicative interest rate provided for the Term Facilities in the Credit Agreement
is approximately 4.73% for the Term A Facility and 5.89% for the Term B Facility. The interest rate for the Revolving Facility
is, with respect to NIS-denominated loans, Hapoalim’s prime rate + 2.5%, and with respect to US dollar-denominated loans,
LIBOR + 4.6%. In addition, the Company pays a 1% commitment fee on the unutilized and uncancelled availability under the Revolving
Facility. The Credit Facilities are secured by the shares held by PowerFleet Israel in Pointer and by Pointer over all of its assets.
The Credit Agreement includes customary representations, warranties, affirmative covenants, negative covenants (including the following
financial covenants, tested quarterly: Pointer’s net debt to EBITDA; Pointer’s net debt to working capital; minimum
equity of PowerFleet Israel; PowerFleet Israel equity to total assets; PowerFleet Israel net debt to EBITDA; and Pointer EBITDA
to current payments and events of default. The Company is in compliance with the covenants as of June 30, 2020. In connection with the Credit Facilities, the
Company incurred debt issuance costs of $742. For the three- and six-month periods ended June 30, 2020, amortization of the debt
issuance costs was $18 and $37. The Company recorded charges of $-0- for both the three- and six-month periods ended June 30, 2019,
and $383 and $743 for the three- and six-month periods ended June 30, 2020, respectively, to interest expense on its consolidated
statements of operations for each of related to interest expense and amortization of debt issuance costs associated with the Credit
Facilities. Scheduled maturities of the Term A Facility
and the Term B Facility as of June 30, 2020 are as follows:
Year ending December 31:
2021 $ 4,141
2022 5,238
2023 5,359
2024 13,404
28,142
Less: Current portion 4,141
Total $ 24,001 The Term B Facility is not subject to amortization
over the life of the loan and instead the original principal amount is due in one installment on the fifth anniversary of the
date of the consummation of the Transactions.

Accounts Payable and Accrued Ex

Accounts Payable and Accrued Expenses6 Months Ended
Jun. 30, 2020
Payables and Accruals [Abstract]
Accounts Payable and Accrued ExpensesNOTE 13 - ACCOUNTS PAYABLE AND ACCRUED EXPENSES Accounts payable and accrued expenses consist
of the following:
December 31, 2019 June 30, 2020
(Unaudited)
Accounts payable $ 15,400 $ 10,298
Accrued warranty 632 652
Accrued compensation 5,517 5,622
Contract liabilities 849 572
Government authorities 2,172 3,642
Other current liabilities 310 176
$ 24,880 $ 20,962 The Company’s products are warranted
against defects in materials and workmanship for a period of one to three years from the date of acceptance of the product by the
customer. The customers may purchase an extended warranty providing coverage up to a maximum of 60 months. A provision for estimated
future warranty costs is recorded for expected or historical warranty matters related to equipment shipped and is included in accounts
payable and accrued expenses in the Condensed Consolidated Balance Sheets as of December 31, 2019 and June 30, 2020. The following table summarizes warranty activity
for the six-month periods ended June 30, 2019 and 2020:
Six Months Ended
June 30,
2019 2020
(Unaudited)
Accrued warranty reserve, beginning of period $ 422 $ 775
Accrual for product warranties issued 152 368
Product replacements and other warranty expenditures (139 ) (355 )
Expiration of warranties (100 ) (18 )
Accrued warranty reserve, end of period (a) $ 335 $ 770 (a) Includes non-current accrued
warranty in other long-term liabilities at December 31, 2019 and June 30, 2020 of $110 and $118, respectively

Stockholders' Equity

Stockholders' Equity6 Months Ended
Jun. 30, 2020
Equity [Abstract]
Stockholders' EquityNOTE 14 - STOCKHOLDERS’ EQUITY Redeemable preferred stock The Company is authorized to issue 150 shares
of preferred stock, par value $0.01 per share of which 100 shares are designated Series A Preferred Stock and 50 shares are undesignated. Series A Preferred Stock In connection with the completion
of the Transactions, on October 3, 2019, the Company issued 50 shares of Series A Preferred Stock. During 2020 the Company issued
an additional share as payment for the earned dividends. Liquidation The Series A Preferred Stock has
a liquidation preference equal to the greater of (i) the original issuance price of $1,000.00 per share, subject to certain adjustments
(the “Series A Issue Price”), plus all accrued and unpaid dividends thereon (except in the case of a deemed liquidation
event, then 150% of such amount) and (ii) the amount such holder would have received if the Series A Preferred Stock had converted
into common stock immediately prior to such liquidation. Dividends Holders of Series A Preferred Stock
are entitled to receive cumulative dividends at a minimum rate of 7.5% per annum (calculated on the basis of the Series A Issue
Price), quarterly in arrears. The dividends are payable at the Company’s election, in kind, through the issuance of additional
shares of Series A Preferred Stock, or in cash, provided no dividend payment failure has occurred and is continuing and that there
has not previously occurred two or more dividend payment failures. Commencing on the 66-month anniversary of the date on which
any shares of Series A Preferred Stock are first issued (the “Original Issuance Date”), and on each monthly anniversary
thereafter, the dividend rate will increase by 100 basis points, until the dividend rate reaches 17.5% per annum, subject to the
Company’s right to defer the increase for up to three consecutive months on terms set forth in the Charter. During the six-month
period ended June 30, 2020, the Company issued dividends in the amounts of 1,927 shares to the holders of the Series A Preferred
Stock. As of June 30, 2020, dividends in arrears were $-0-. Voting; Consent Rights The holders of Series A Preferred
Stock will be given notice by the Company of any meeting of stockholders or action to be taken by written consent in lieu of a
meeting of stockholders as to which the holders of common stock are given notice at the same time as provided in, and in accordance
with, the Company’s Amended and Restated Bylaws. Except as required by applicable law or as otherwise specifically set forth
in the Charter, the holders of Series A Preferred Stock are not entitled to vote on any matter presented to the Company’s
stockholders unless and until any holder of Series A Preferred Stock provides written notification to the Company that such holder
is electing, on behalf of all holders of Series A Preferred Stock, to activate their voting rights and in doing so rendering the
Series A Preferred Stock voting capital stock of the Company (such notice, a “Series A Voting Activation Notice”).
From and after the delivery of a Series A Voting Activation Notice, all holders of the Series A Preferred Stock will be entitled
to vote with the holders of common stock as a single class on an as-converted basis (provided, however, that any holder of Series
A Preferred Stock shall not be entitled to cast votes for the number of shares of common stock issuable upon conversion of such
shares of Series A Preferred Stock held by such holder that exceeds the quotient of (1) the aggregate Series A Issue Price for
such shares of Series A Preferred Stock divided by (2) $5.57 (subject to adjustment for stock splits, stock dividends, combinations,
reclassifications and similar events, as applicable)). So long as shares of Series A Preferred Stock are outstanding and convertible
into shares of common stock that represent at least 10% of the voting power of the common stock, or the Investors or their affiliates
continue to hold at least 33% of the aggregate amount of Series A Preferred Stock issued to the Investors on the Original Issuance
Date, the consent of the holders of at least a majority of the outstanding shares of Series A Preferred Stock will be necessary
for the Company to, among other things, (i) liquidate the Company or any operating subsidiary or effect any deemed liquidation
event (as such term is defined in the Charter), except for a deemed liquidation event in which the holders of Series A Preferred
Stock receive an amount in cash not less than the Redemption Price (as defined below), (ii) amend the Company’s organizational
documents in a manner that adversely affects the Series A Preferred Stock, (iii) issue any securities that are senior to, or equal
in priority with, the Series A Preferred Stock or issue additional shares of Series A Preferred Stock to any person other than
the Investors or their affiliates, (iv) incur indebtedness above the agreed-upon threshold, (v) change the size of the Company’s
board of directors to a number other than seven, or (vi) enter into certain affiliated arrangements or transactions. Redemption At any time, each holder of Series
A Preferred Stock may elect to convert each share of such holder’s then-outstanding Series A Preferred Stock into the number
of shares of the Company’s common stock equal to the quotient of (x) the Series A Issue Price, plus any accrued and unpaid
dividends, divided by (y) the Series A Conversion Price in effect at the time of conversion. The Series A Conversion Price is initially
equal to $7.319, subject to certain adjustments as set forth in the Charter. At any time after the third anniversary
of the Original Issuance Date, subject to certain conditions, the Company may redeem the Series A Preferred Stock for an amount
per share, equal to the greater of (i) the product of (x) 1.5 multiplied by (y) the sum of the Series A Issue Price, plus all accrued
and unpaid dividends and (ii) the product of (x) the number of shares of common stock issuable upon conversion of such Series A
Preferred Stock multiplied by (y) the volume weighted average price of the common stock during the 30 consecutive trading day period
ending on the trading date immediately prior to the date of such redemption notice or, if calculated in connection with a deemed
liquidation event, the value ascribed to a share of common stock in such deemed liquidation event (the “Redemption Price”). Further, at any time (i) after the
66-month anniversary of the Original Issuance Date, (ii) following delivery of a mandatory conversion notice by us, or (iii) upon
a deemed liquidation event, subject to Delaware law governing distributions to stockholders, the holders of the Series A Preferred
Stock may elect to require us to redeem all or any portion of the outstanding shares of Series A Preferred Stock for an amount
per share equal to the Redemption Price. At-The-Market-Offering On May 14, 2020, we entered into an equity
distribution agreement with Canaccord Genuity LLC, pursuant to which we may offer and sell, from time to time through an “at-the-market
offering” program, with Canaccord as sales agent, shares of our common stock having an aggregate offering price of up to
$25 million. The Company will pay Canaccord a commission of 3.0% of the aggregate gross proceeds from each sale of common stock
occurring pursuant to the Sales Agreement, if any. The offer and sale of common stock in the offering will be made pursuant to
the Company’s shelf registration statement on Form S-3 that was declared effective by the SEC on November 27, 2019, the
base prospectus contained therein dated November 27, 2019, and a prospectus supplement related to the ATM Offering dated May 14,
2020. During the three-month period ended June 30, 2020, we sold 810 shares of common stock through Canaccord under the Sales
Agreement, received net proceeds from such sales of $4.0 million, and paid Canaccord $125 in commissions with respect to sales
of common stock under the Sales Agreement. On August 4, 2020, we provided written notice to Canaccord of our election to terminate
the Sales Agreement. The termination will be effective as of August 14, 2020.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss6 Months Ended
Jun. 30, 2020
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Accumulated Other Comprehensive LossNOTE 15 - ACCUMULATED OTHER COMPREHENSIVE
LOSS Comprehensive income (loss) includes net loss
and unrealized gains or losses on available-for-sale investments and foreign currency translation gains and losses. Cumulative
unrealized gains and losses on available-for-sale investments are reflected as accumulated other comprehensive loss in stockholders’
equity on the Company’s Consolidated Balance Sheets. The accumulated balances for each classification
of other comprehensive loss for the six-month period ended June 30, 2020 are as follows:
Foreign currency items Unrealized gain (losses) on investments Accumulated other comprehensive loss
Balance at January 1, 2020 $ 265 $ - $ 265
Net current period change (1,920 ) - (1,920 )
Balance at June 30, 2020 $ (1,655 ) $ - (1,655 ) The accumulated balances for each classification
of other comprehensive loss for the six-month period ended June 30, 2019 are as follows:
Foreign currency items Unrealized gain (losses) on investments Accumulated other comprehensive loss
Balance at January 1, 2019 $ (388 ) $ (47 ) $ (435 )
Net current period change (58 ) 47 (11 )
Balance at June 30, 2019 $ (446 ) $ - $ (446 ) The Company’s reporting currency is the
U.S dollar (USD). For businesses where the majority of the revenues are generated in USD or linked to the USD and a substantial
portion of the costs are incurred in USD, the Company’s management believes that the USD is the primary currency of the economic
environment and thus their functional currency. Due to the fact that Argentina has been determined to be highly inflationary, the
financial statements of our subsidiary in Argentina have been remeasured as if its functional currency was the USD. The Company
also has foreign operations where the functional currency is the local currency. For these operations, assets and liabilities are
translated using the end-of-period exchange rates and revenues, expenses and cash flows are translated using average rates of exchange
for the period. Equity is translated at the rate of exchange at the date of the equity transaction. Translation adjustments are
recognized in stockholders’ equity as a component of accumulated other comprehensive income (loss). Net translation gains
(losses) from the translation of foreign currency financial statements of $(58) and $(1,920) at June 30, 2019 and 2020, respectively,
are included in comprehensive loss in the Consolidated Statement of Changes in Stockholders’ Equity. Foreign currency translation gains and losses
related to operational expenses denominated in a currency other than the functional currency are included in determining net income
or loss. Foreign currency translation gains (losses) for the three- and six-month periods ended June 30, 2019 of $(4) and $(30),
respectively, and for the three- and six-month periods ended June 30, 2020 of $112 and $(141), respectively are included in selling,
general and administrative expenses. Foreign currency translation gains and losses related to long-term debt of $805 and
$(90), respectively, for the three- and six-month periods ended June 30, 2020 are included in interest expense in the
Consolidated Statement of Operations.

Segment Information

Segment Information6 Months Ended
Jun. 30, 2020
Segment Reporting [Abstract]
Segment InformationNOTE 16 – SEGMENT INFORMATION The Company operates in one reportable segment,
wireless IoT asset management. The following table summarizes revenues by geographic region.
Three Months Ended Six Months Ended
June 30, June 30,
2019 2020 2019 2020
United States $ 15,475 $ 10,845 $ 28,435 $ 23,953
Israel - 9,135 - 18,875
Other 799 5,785 1,450 13,736
$ 16,274 $ 25,765 $ 29,885 $ 56,564
December 31, 2019 June 30, 2020
(unaudited)
Long lived assets by geographic region:
United States $ 1,931 $ 1,623
Israel 2,285 2,419
Other 4,024 2,942
$ 8,240 $ 6,984

Income Taxes

Income Taxes6 Months Ended
Jun. 30, 2020
Income Tax Disclosure [Abstract]
Income TaxesNOTE 17 - INCOME TAXES The Company generally records its interim tax
provision based upon a projection of the Company’s annual effective tax rate (“AETR”). This AETR is applied to
the year-to-date consolidated pre-tax income to determine the interim provision for income taxes before discrete items. The Company
updates the AETR on a quarterly basis as the pre-tax income projections are revised and tax laws are enacted. The effective tax
rate (“ETR”) each period is impacted by a number of factors, including the relative mix of domestic and international
earnings and adjustments to the valuation allowance. The currently forecasted ETR may vary from the actual year-end due to the
changes in these factors. The Company’s global ETR for the six
months ended June 30, 2020 and 2019 was 12% and 0%, respectively. For the six months ended June 30, 2019 and 2020 the effective
tax rate differs from the statutory tax rates primarily due to a valuation allowance to fully reserve its net operating loss carryforwards
and other items giving rise to deferred tax assets and tax on foreign earnings. On March 27, 2020, the President of the United
States signed the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) into law providing certain relief
as a result of the COVID-19 pandemic. The CARES Act, among other things, includes provisions relating to net operating loss carryback
periods, alternative minimum tax credit refunds, modification to the net interest deduction limitations and technical corrections
to tax depreciation methods for qualified improvement property. The Company does not expect that the CARES Act will have a material
impact on its consolidated financial statements.

Leases

Leases6 Months Ended
Jun. 30, 2020
Leases [Abstract]
LeasesNOTE 18 - LEASES In February 2016, the Financial Accounting
Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, which is effective for
fiscal years beginning after December 15, 2018. The Company adopted ASU No. 2016-02 prospectively as of January 1, 2019, the date
of initial application, and therefore prior comparative periods were not adjusted. As part of the adoption,
the Company elected . The Company determines whether an arrangement
is a lease at inception. The Company has operating leases for office space and office equipment. The Company’s leases have
remaining lease terms of one year to seven years, some of which include options to extend the lease term for up to five years.
The Company considered these options to extend in determining the lease term used to establish the Company’s right-of use
assets and lease liabilities once reasonably certain of exercise. The Company’s lease agreements do not contain any material
residual value guarantees or material restrictive covenants. ROU assets represent the Company’s right
to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments
arising from the lease. Operating lease ROU assets and operating lease liabilities are recognized at the lease commencement date
based on the present value of the future lease payments over the lease term. The operating lease ROU asset also includes any lease
payments made in advance of lease commencement and excludes lease incentives. The lease terms used in the calculations of the operating
ROU assets and operating lease liabilities include options to extend or terminate the lease when the Company is reasonably certain
that it will exercise those options. Lease expense for lease payments is recognized on a straight-line basis over the lease term. As the Company’s leases do not provide
an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining
the present value of lease payments. The Company has lease agreements with lease
and non-lease components, which are generally not accounted for separately. Components of lease expense are as follows:
Three Months Ended Six Months Ended
June 30, June 30,
2019 2020 2019 2020
Short term lease cost $ 100 $ 164 $ 144 $ 293
Supplemental cash flow information and non-cash
activity related to our operating leases are as follows:
Six Months Ended June 30, 2020
Non-cash activity:
Right-of-use assets obtained in exchange for lease obligations $ 2,259 Weighted-average remaining lease term and discount
rate for our operating leases are as follows:
June 30, 2020
Weighted-average remaining lease term (in years) 4.0
Weighted-average discount rate 3.28 % Scheduled maturities of operating lease liabilities
outstanding as of June 30, 2020 are as follows:
Year ending December 31:
July - December 2020 $ 1,650
2021 2,091
2022 1,809
2023 1,539
2024 1,360
2025 1,505
Thereafter 248
Total lease payments 10,202
Less: Imputed interest (1,514 )
Present value of lease liabilities $ 8,688

Fair Value of Financial Instrum

Fair Value of Financial Instruments6 Months Ended
Jun. 30, 2020
Fair Value Disclosures [Abstract]
Fair Value of Financial InstrumentsNOTE 19 - FAIR VALUE OF FINANCIAL INSTRUMENTS The Company’s cash and cash equivalents
are carried at fair value. The carrying value of financing receivables approximates fair value due to the interest rate implicit
in the instruments approximating current market rates. The carrying value of accounts receivables, accounts payable and accrued
liabilities and short term bank debt approximates their fair values due to the short period to maturity of these instruments. The
fair value of the Company’s long term debt is based on observable relevant market information and future cash flows discounted
at current rates, which are Level 2 measurements.
June 30, 2020
Carrying Amount Fair Value
Long term debt $ 28,142 $ 28,142

Concentration of Customers

Concentration of Customers6 Months Ended
Jun. 30, 2020
Risks and Uncertainties [Abstract]
Concentration of CustomersNOTE 20 - CONCENTRATION OF CUSTOMERS For the six-month period ended June 30, 2020,
there were no customers who generated revenues greater than 10% of the Company’s consolidated total revenues or generated
greater than 10% of the Company’s consolidated accounts receivable. For the six-month period ended June 30, 2019
and as of June 30, 2019, one customer accounted for 23%, of the Company’s revenues and two customers accounted
for 34% and 10% of the Company’s accounts receivables. Two customers accounted for 22% and 20% of finance receivables
as of June 30, 2019.

Commitments and Contingencies

Commitments and Contingencies6 Months Ended
Jun. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments and ContingenciesNOTE 21 - COMMITMENTS AND CONTINGENCIES Except for normal operating leases, the Company
is not currently subject to any material commitments. [A] Contingencies From time to time, the Company is
involved in various litigation matters involving claims incidental to its business and acquisitions, including employment matters,
acquisition related claims, patent infringement and contractual matters, among other issues. While the outcome of any such litigation
matters cannot be predicted with certainty, management currently believes that the outcome of these proceedings, including the
matters described below, either individually or in the aggregate, will not have a material adverse effect on its business, results
of operations or financial condition. The Company records reserves related to legal matters when losses related to such litigation
or contingencies are both probable and reasonably estimable. In July 2015, Pointer do Brasil
Comercial Ltda. (“Pointer Brazil”) received a tax deficiency notice alleging that the services provided by Pointer
Brazil should be classified as “telecommunication services” and therefore Pointer Brazil should be subject to the
state value-added tax. The aggregate amount claimed to be owed under the notice was approximately $10,680 as of June 30, 2020.
On August 14, 2018, the lower chamber of the State Tax Administrative Court in São Paulo rendered a decision that was favorable
to Pointer Brazil in relation to the ICMS demands, but adverse in regards to the clerical obligation of keeping in good order
a set of ICMS books and related tax receipts. The remaining claim after this administrative decision is $182. The state has the
opportunity to appeal to the higher chamber of the State Tax Administrative Court. The Company’s legal counsel is of the
opinion that it is probable that the Company will prevail, and that no material costs will arise in respect to these claims. For
this reason, the Company has not made any provision.

Recent Accounting Pronouncement

Recent Accounting Pronouncements6 Months Ended
Jun. 30, 2020
Accounting Changes and Error Corrections [Abstract]
Recent Accounting PronouncementsNOTE 22 - RECENT ACCOUNTING PRONOUNCEMENTS In December 2019, the FASB issued ASU No. 2019-12,
“Simplifying the Accounting for Income Taxes,” which removes certain exceptions related to the approach for intraperiod
tax allocation, the methodology for calculating income taxes in an interim period, the recognition of deferred tax liabilities
for outside basis differences and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill.
The guidance is generally effective as of January 1, 2021, with early adoption permitted. The Company has not early adopted the
new standard for 2020 and is evaluating the impact of the new guidance on our financial statements. In June 2016, the FASB issued ASU No. 2016-13,
“Financial Instruments - Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments,” which amends
the guidance on measuring credit losses on financial assets held at amortized cost. The amendment is intended to address the issue
that the previous “incurred loss” methodology was restrictive for an entity’s ability to record credit losses
based on not yet meeting the “probable” threshold. The new language will require these assets to be valued at amortized
cost presented at the net amount expected to be collected with a valuation provision. This update standard is effective for fiscal
years beginning after December 15, 2021. The Company is currently evaluating the impact of this ASU on the consolidated financial
statements. In January 2017, the FASB issued ASU No. 2017-04, “Intangibles
- Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment,” which simplifies how an entity is required
to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment
loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. Under
the amendments in ASU No. 2017-04, an entity should recognize an impairment charge for the amount by which the carrying amount
of a reporting unit exceeds its fair value; however, the loss recognized should not exceed the total amount of goodwill allocated
to that reporting unit. The updated guidance requires a prospective adoption. The adoption of this standard does not have an impact
on the Company’s condensed consolidated financial statements.

Acquisitions (Tables)

Acquisitions (Tables)6 Months Ended
Jun. 30, 2020
Pointer Transactions [Member]
Schedule of Purchase Price Allocation on Net Assets AcquiredThe following table summarizes the preliminary
purchase price allocation based on estimated fair values of the net assets acquired at the acquisition date:
Accounts receivable $ 19,701
Inventory 8,666
Other assets 26,461
Customer relationships 15,610
Trademark and tradename 6,096
Technology 10,911
Goodwill (a) 78,446
Less: Current liabilities assumed (21,055 )
Less: Non current liabilities assumed (14,420 )
Net assets acquired $ 130,416
(a) The goodwill is not deductible for tax purposes.
Schedule of Pro Forma Revenue and EarningsThe following table represents the combined
pro forma revenue and earnings for the six-month period ended June 30, 2019:
Three-Months Ended Six-Months Ended
June 30, 2019 June 30, 2019
Historical Pro Forma Historical Pro Forma
(Unaudited) (Unaudited)
Revenues $ 16,274 $ 34,020 $ 29,885 $ 65,276
Operating loss (2,559 ) (2,229 ) (4,760 ) (4,941 )
Net loss per share - basic and diluted $ (0.15 ) $ (0.16 ) $ (0.27 ) $ (0.16 )
CarrierWeb Acquisition [Member]
Schedule of Purchase Price Allocation on Net Assets AcquiredThe following table summarizes the final purchase
price allocation of CarrierWeb and CarrierWeb Ireland based on the fair values of the net assets acquired at the acquisition date:
Accounts receivable 192
Inventory 200
Other assets 26
Customer relationships 531
Trademark and tradename 90
Patents 628
Goodwill (a) 3,108
Net assets acquired $ 4,775
(a) The goodwill is fully deductible for tax purposes.

Revenue Recognition (Tables)

Revenue Recognition (Tables)6 Months Ended
Jun. 30, 2020
Revenue from Contract with Customer [Abstract]
Schedule of Revenue Disaggregated by Revenue SourcesThe following table presents the Company’s
revenues disaggregated by revenue source for the three- and six-months ended June 30, 2019 and 2020:
Three Months Ended Six Months Ended
June 30, June 30,
2019 2020 2019 2020
Products $ 10,643 $ 9,394 $ 17,892 $ 22,602
Services 5,631 16,371 11,993 33,962
$ 16,274 $ 25,765 $ 29,885 $ 56,564
Schedule of Deferred RevenueThe balances of contract assets, and contract
liabilities from contracts with customers are as follows as of December 31, 2019 and June 30, 2020:
December 31, 2019 June 30, 2020
(Unaudited)
Assets:
Deferred contract costs $ 2,196 $ 1,735
Deferred logistics visibility solutions costs $ 8,530 $ 6,905
Liabilities:
Contract liabilities (1) $ 1,098 $ 794
Deferred revenue -other (1) 227 281
Deferred maintenance and SaaS revenue (1) 5,072 5,540
Deferred logistics visibility solutions product revenue (1) 10,932 8,749
17,329 15,364
Less: Deferred revenue and contract liabilities - Current portion (8,536 ) (8,608 )
Deferred revenue and contract liabilities - less current portion $ 8,793 $ 6,756
(1) The Company records deferred revenues when cash payments are received or due in advance of the Company’s performance. For the three- and six-month periods ended June 30, 2019 and 2020, the Company recognized revenue of $6,891 and $2,426, respectively, and $6,238 and $4,600, respectively, that was included in the deferred revenue balance at the beginning of each reporting period. The Company expects to recognize as revenue these deferred revenue balances before the year 2025, when the services are performed and, therefore, satisfies its performance obligation to the customers.

Prepaid Expenses and Other As_2

Prepaid Expenses and Other Assets (Tables)6 Months Ended
Jun. 30, 2020
Prepaid Expense and Other Assets [Abstract]
Schedule of Prepaid Expenses and Other Current AssetsPrepaid expenses and other current assets consist
of the following:
December 31, 2019 June 30, 2020
(Unaudited)
Finance receivables, current $ 893 $ 740
Prepaid expenses 3,221 2,547
Contract assets 1,335 783
Other current assets 1,921 1,647
$ 7,370 $ 5,717

Inventory (Tables)

Inventory (Tables)6 Months Ended
Jun. 30, 2020
Inventory Disclosure [Abstract]
Schedule of InventoriesInventories consist of the following:
December 31, 2019 June 30, 2020
(Unaudited)
Components $ 8,183 $ 7,725
Work in process 210 61
Finished goods 7,988 7,551
$ 16,381 $ 15,337

Fixed Assets (Tables)

Fixed Assets (Tables)6 Months Ended
Jun. 30, 2020
Property, Plant and Equipment [Abstract]
Schedule of Fixed AssetsFixed assets are stated at cost, less accumulated
depreciation and amortization, and are summarized as follows:
December 31, 2019 June 30, 2020
(Unaudited)
Installed products $ 3,180 1,425
Computer software 5,635 5,618
Computer and electronic equipment 6,231 4,497
Furniture and fixtures 1,364 1,434
Leasehold improvements 641 748
17,051 13,722
Accumulated depreciation and amortization (8,811 ) (6,738 )
$ 8,240 $ 6,984

Intangible Assets and Goodwill

Intangible Assets and Goodwill (Tables)6 Months Ended
Jun. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible AssetsThe following table summarizes identifiable
intangible assets of the Company as of December 31, 2019 and June 30, 2020:
Useful Gross Net
Lives Carrying Accumulated Carrying
June 30, 2020 (In Years) Amount Amortization Amount
Amortized:
Customer relationships 9 - 12 $ 19,264 $ (1,920 ) $ 17,344
Trademark and tradename 3 - 15 7,553 (890 ) 6,663
Patents 7 - 11 2,117 (1,548 ) 569
Technology 7 10,911 (1,903 ) 9,008
Favorable contract interest 4 388 (283 ) 105
Covenant not to compete 5 208 (121 ) 87
40,441 (6,665 ) 33,776
Unamortized:
Customer list 104 - 104
Trademark and Tradename 61 - 61
165 - 165
Total $ 40,606 $ (6,665 ) $ 33,941
Useful Gross Net
Lives Carrying Accumulated Carrying
December 31, 2019 (In Years) Amount Amortization Amount
Amortized:
Customer relationships 9 - 12 $ 19,299 $ (1,108 ) $ 18,191
Trademark and tradename 3 - 15 7,553 (488 ) 7,065
Patents 7 - 11 2,117 (1,436 ) 681
Technology 7 10,911 (634 ) 10,277
Favorable contract interest 4 388 (234 ) 154
Covenant not to compete 5 208 (102 ) 106
40,476 (4,002 ) 36,474
Unamortized:
Customer list 104 - 104
Trademark and Tradename 61 - 61
165 - 165
Total $ 40,641 $ (4,002 ) $ 36,639
Schedule of Finite-lived Intangible Assets, Future Amortization ExpenseEstimated future amortization expense for each
of the five succeeding fiscal years for these intangible assets is as follows:
Year ending December 31:
2020 (remaining) $ 2,665
2021 5,153
2022 4,479
2023 4,434
2024 2,021
2025 1,894
Thereafter 13,130
$ 33,776

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)6 Months Ended
Jun. 30, 2020
Schedule of Stock Options ActivityThe following table summarizes the activity
relating to the Company’s stock options for the six-month period ended June 30, 2020:
December 31, 2019 Options Weighted- Weighted- Aggregate
Outstanding at beginning of year 4,078 $ 5.79
Granted 1,160 6.10
Exercised (140 ) 4.28
Forfeited or expired (1,305 ) 6.04
Outstanding at end of period 3,793 $ 5.85 9 years $ 161
Exercisable at end of period 925 $ 5.64 6 years $ 56
Schedule of Fair Value Stock Option AssumptionsThe fair value of each option grant on the
date of grant is estimated using the Black-Scholes option-pricing model reflecting the following weighted-average assumptions:
June 30,
2019 2020
Expected volatility 24.2 % 44.7 %
Expected life of options (in years) 3 6
Risk free interest rate 1.41 % 1.17 %
Dividend yield 0 % 0 %
Weighted average fair value of options granted during the period $ 2.72 $ 2.58
Schedule of Non-vested Restricted Stock ActivityA summary of all non-vested restricted stock
for the three-month period ended June 30, 2020 is as follows:
Number of Non-vested Shares Weighted-
Restricted stock, non-vested, beginning of year 877 $ 6.17
Granted 318 4.97
Vested (252 ) 6.16
Forfeited (50 ) 6.24
Restricted stock, non-vested, end of period 893 $ 5.75
Restricted Stock Units (RSUs) [Member]
Schedule of Non-vested Restricted Stock ActivityThe following table summarizes the activity
relating to the Company’s restricted stock units for the three-month period ended June 30, 2020:
Number of Restricted Stock Units Weighted-
Restricted stock units, non-vested, beginning of year 253 $ 5.60
Granted - -
Vested (127 ) 5.60
Forfeited (5 ) 5.60
Restricted stock units, non-vested, end of period 121 $ 5.60

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)6 Months Ended
Jun. 30, 2020
Earnings Per Share [Abstract]
Schedule of Net Loss Per Share Basic and DilutedNet loss per share for the three- and six-month
periods ended June 30, 2019 and 2020 are as follows:
Three Months Ended Six Months Ended
June 30, June 30,
2019 2020 2019 2020
Basic and diluted loss per share
Net loss attributable to common stockholders $ (2,585 ) $ (3,766 ) $ (4,779 ) $ (8,315 )
Weighted-average common shares outstanding - basic and diluted 17,678 29,399 17,650 29,216
Net loss attributable to common stockholders - basic and diluted $ (0.15 ) $ (0.13 ) $ (0.27 ) $ (0.28 )

Short-Term Bank Debt and Long_2

Short-Term Bank Debt and Long-Term Debt (Tables)6 Months Ended
Jun. 30, 2020
Debt Disclosure [Abstract]
Schedule of Long Term DebtDecember 31, 2019 June 30, 2020
(Unaudited)
Short-term bank debt bearing interest at 17% per annum $ 685 $ 187
Current maturities of long-term debt $ 2,688 $ 4,141
Notes payable $ 5,000 $ 5,000
Long-term debt – less current maturities $ 26,515 $ 24,001
Schedule of Maturities of Long Term DebtScheduled maturities of the Term A Facility
and the Term B Facility as of June 30, 2020 are as follows:
Year ending December 31:
2021 $ 4,141
2022 5,238
2023 5,359
2024 13,404
28,142
Less: Current portion 4,141
Total $ 24.001

Accounts Payable and Accrued _2

Accounts Payable and Accrued Expenses (Tables)6 Months Ended
Jun. 30, 2020
Payables and Accruals [Abstract]
Schedule of Accounts Payable and Accrued LiabilitiesAccounts payable and accrued expenses consist
of the following:
December 31, 2019 June 30, 2020
(Unaudited)
Accounts payable $ 15,400 $ 10,298
Accrued warranty 632 652
Accrued compensation 5,517 5,622
Contract liabilities 849 572
Government authorities 2,172 3,642
Other current liabilities 310 176
$ 24,880 $ 20,962
Schedule of Product Warranty LiabilityThe following table summarizes warranty activity
for the six-month periods ended June 30, 2019 and 2020:
Six Months Ended
June 30,
2019 2020
(Unaudited)
Accrued warranty reserve, beginning of period $ 422 $ 775
Accrual for product warranties issued 152 368
Product replacements and other warranty expenditures (139 ) (355 )
Expiration of warranties (100 ) (18 )
Accrued warranty reserve, end of period (a) $ 335 $ 770 (a) Includes non-current accrued
warranty in other long-term liabilities at December 31, 2019 and June 30, 2020 of $110 and $118, respectively

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Loss (Tables)6 Months Ended
Jun. 30, 2020
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Schedule of Accumulated Other Comprehensive Income (Loss)The accumulated balances for each classification
of other comprehensive loss for the six-month period ended June 30, 2020 are as follows:
Foreign currency items Unrealized gain (losses) on investments Accumulated other comprehensive loss
Balance at January 1, 2020 $ 265 $ - $ 265
Net current period change (1,920 ) - (1,920 )
Balance at June 30, 2020 $ (1,655 ) $ - (1,655 ) The accumulated balances for each classification
of other comprehensive loss for the six-month period ended June 30, 2019 are as follows:
Foreign currency items Unrealized gain (losses) on investments Accumulated other comprehensive loss
Balance at January 1, 2019 $ (388 ) $ (47 ) $ (435 )
Net current period change (58 ) 47 (11 )
Balance at June 30, 2019 $ (446 ) $ - $ (446 )

Segment Information (Tables)

Segment Information (Tables)6 Months Ended
Jun. 30, 2020
Segment Reporting [Abstract]
Schedule of Revenues and Long Lived Assets By Geographical RegionThe Company operates in one reportable segment,
wireless IoT asset management. The following table summarizes revenues by geographic region.
Three Months Ended Six Months Ended
June 30, June 30,
2019 2020 2019 2020
United States $ 15,475 $ 10,845 $ 28,435 $ 23,953
Israel - 9,135 - 18,875
Other 799 5,785 1,450 13,736
$ 16,274 $ 25,765 $ 29,885 $ 56,564
December 31, 2019 June 30, 2020
(unaudited)
Long lived assets by geographic region:
United States $ 1,931 $ 1,623
Israel 2,285 2,419
Other 4,024 2,942
$ 8,240 $ 6,984

Leases (Tables)

Leases (Tables)6 Months Ended
Jun. 30, 2020
Leases [Abstract]
Schedule of Components of Lease ExpenseComponents of lease expense are as follows:
Three Months Ended Six Months Ended
June 30, June 30,
2019 2020 2019 2020
Short term lease cost $ 100 $ 164 $ 144 $ 293
Schedule of Cash Flow Information and Non-cash Activity of Operating LeasesSupplemental cash flow information and non-cash
activity related to our operating leases are as follows:
Six Months Ended June 30, 2020
Non-cash activity:
Right-of-use assets obtained in exchange for lease obligations $ 2,259
Schedule of Weighted Average Remaining Lease Term and Discount RateWeighted-average remaining lease term and discount
rate for our operating leases are as follows:
June 30, 2020
Weighted-average remaining lease term (in years) 4.0
Weighted-average discount rate 3.28 %
Scheduled Maturities of Operating Lease LiabilitiesScheduled maturities of operating lease liabilities
outstanding as of June 30, 2020 are as follows:
Year ending December 31:
July - December 2020 $ 1,650
2021 2,091
2022 1,809
2023 1,539
2024 1,360
2025 1,505
Thereafter 248
Total lease payments 10,202
Less: Imputed interest (1,514 )
Present value of lease liabilities $ 8,688

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)6 Months Ended
Jun. 30, 2020
Fair Value Disclosures [Abstract]
Schedule of Fair Value of Financial InstrumentsThe fair value of the Company’s long
term debt is based on observable relevant market information and future cash flows discounted at current rates, which are Level
2 measurements.
June 30, 2020
Carrying Amount Fair Value
Long term debt $ 28,142 $ 28,142

Description of the Company an_2

Description of the Company and Basis of Presentation (Details Narrative) - USD ($) $ in ThousandsNov. 27, 2019Oct. 03, 2019Jun. 30, 2020May 14, 2020Dec. 31, 2019[1]Jun. 30, 2019Dec. 31, 2018
Cash, cash equivalents $ 21,469 $ 16,395 $ 8,098 $ 10,159
Working capital28,903
Line of credit facility, borrowing capacity
Common stock having an aggregate offering price $ 25,000,000
Common Stock, Preferred Stock, Warrants, Debt Securities, and Units, or Any Combination [Member]
Sale of stock, description of transactionThe Company has on file a shelf registration statement on Form S-3 that was declared effective by the Securities and Exchange Commission (the "SEC") on November 27, 2019. Pursuant to the shelf registration statement, the Company may offer to the public from time to time, in one or more offerings, up to $60,000 of its common stock, preferred stock, warrants, debt securities, and units, or any combination of the foregoing, at prices and on terms to be determined at the time of any such offering.
Revolving Credit Facility [Member]
Debt instrument, face amount $ 10,000
Line of credit facility, expiration period5 years
Two Senior Secured Term Loan [Member]
Debt instrument, face amount $ 30,000
Facilities One [Member]
Debt instrument, face amount20,000
Facilities Two [Member]
Debt instrument, face amount $ 10,000
[1]Derived from audited balance sheet as of December 31, 2019.

Acquisitions (Details Narrative

Acquisitions (Details Narrative) - USD ($) $ / shares in Units, $ in ThousandsOct. 03, 2019Jul. 30, 2019Jan. 30, 2019Apr. 30, 2019Jun. 30, 2020Jun. 30, 2019Jun. 30, 2020Jun. 30, 2019Jan. 11, 2019
Line of credit facility, borrowing capacity
Acquisition related expenses $ 1,613 $ 3,062
Pointer Transactions [Member]
Cash consideration on merger, price $ 8.50
Stock consideration on merger $ 1,272,000
Total consideration of the transactions $ 130,416
Pointer Transactions [Member] | Credit Agreement [Member]
Line of credit facility, borrowing capacity30,000
Pointer Transactions [Member] | Series A Convertible Preferred Stock [Member]
Total consideration of the transactions $ 50,000
Total consideration of shares50,000
Pointer Transactions [Member] | Common Stock [Member]
Total consideration of the transactions $ 58,801
Total consideration of shares10,756,000
Pointer Transactions [Member] | Cash Paid at Closing [Member]
Total consideration of the transactions $ 71,874
Pointer Transactions [Member] | Share-based Awards [Member]
Total consideration of the transactions $ 461
Pointer Transactions [Member] | 2018 Plan [Member]
Option to purchase transaction descriptionThe Pointer Merger Effective Time, each award of options to purchase Pointer ordinary shares that was outstanding and unvested immediately prior to such time was cancelled and substituted with options to purchase shares of PowerFleet common stock under the Company's 2018 Incentive Plan on the same material terms and conditions as were applicable to the corresponding option immediately prior to the Pointer Merger Effective Time, except that (i) the number of shares of PowerFleet common stock underlying such substituted option is equal to the product of (A) the number of Pointer ordinary shares underlying such option immediately prior to the Pointer Merger Effective Time multiplied by (B) 2.544, with any fractional shares rounded down to the nearest whole number of shares of PowerFleet common stock, and (ii) the per-share exercise price is equal to the quotient obtained by dividing (A) the exercise price per Pointer ordinary share subject to such option immediately prior to the Pointer Merger Effective Time by (B) 2.544 (rounded up to the nearest whole cent).
Fractional shares2,544,000
CarrierWeb US Acquisition [Member]
Aggregate consideration for acquisition $ 3,500
Closing cash payment2,800
Cash amount in acquisition2,150
Principal and interest outstanding $ 650
Repayment of loan amount $ 700
CarrierWeb Ireland Acquisitions [Member]
Principal and interest outstanding $ 300
CarrierWeb Ireland Acquisition [Member]
Closing cash payment $ 550
Stock issued during period for common stock acquisition127,000
Stock issued during the period for repayment of loans56,000
Stock issued during the period for repayment of loans, value $ 300
Number of shares held back44,000
Estimated fair value of held back $ 250
CarrierWeb Acquisitions [Member]
Acquisition related expenses $ 30 $ 160

Acquisitions - Schedule of Purc

Acquisitions - Schedule of Purchase Price Allocation on Net Assets Acquired (Details) - USD ($) $ in ThousandsJun. 30, 2020Dec. 31, 2019[1]Oct. 03, 2019Jan. 30, 2019
Goodwill $ 88,872 $ 89,068
Pointer Telocation Ltd., [Member]
Accounts receivable $ 19,701
Inventory8,666
Other assets26,461
Customer relationships15,610
Trademark and tradename6,096
Technology10,911
Goodwill[2]78,446
Less: Current liabilities assumed(21,055)
Less: Non current liabilities assumed(14,420)
Net assets acquired $ 130,416
CarrierWeb Acquisition [Member]
Accounts receivable $ 192
Inventory200
Other assets26
Customer relationships531
Trademark and tradename90
Patents628
Goodwill[3]3,108
Net assets acquired $ 4,775
[1]Derived from audited balance sheet as of December 31, 2019.
[2]The goodwill is not deductible for tax purposes.
[3]The goodwill is fully deductible for tax purposes.

Acquisitions - Schedule of Pro

Acquisitions - Schedule of Pro Forma Revenue and Earnings (Details) - USD ($) $ / shares in Units, $ in Thousands3 Months Ended6 Months Ended
Jun. 30, 2019Jun. 30, 2019
Historical [Member]
Revenues $ 16,274 $ 29,885
Operating loss $ (2,559) $ (4,760)
Net loss per share - basic and diluted $ (0.15) $ (0.27)
Pro Forma Combined [Member]
Revenues $ 34,020 $ 65,276
Operating loss $ (2,229) $ (4,941)
Net loss per share - basic and diluted $ (0.16) $ (0.16)

Revenue Recognition - Schedule

Revenue Recognition - Schedule of Revenue Disaggregated by Revenue Sources (Details) - USD ($) $ in Thousands3 Months Ended6 Months Ended
Jun. 30, 2020Jun. 30, 2019Jun. 30, 2020Jun. 30, 2019
Total Revenue $ 25,765 $ 16,274 $ 56,564 $ 29,885
Products [Member]
Total Revenue9,394 10,643 22,602 17,892
Services [Member]
Total Revenue $ 16,371 $ 5,631 $ 33,962 $ 11,993

Revenue Recognition - Schedul_2

Revenue Recognition - Schedule of Deferred Revenue (Details) - USD ($) $ in ThousandsJun. 30, 2020Dec. 31, 2019
Deferred logistics visibility solutions costs $ 6,905 $ 8,530
Deferred revenue15,364 [1]17,329
Less: Deferred revenue and contract liabilities - Current portion8,036 7,687
Deferred revenue and contract liabilities - less current portion6,534 8,544
Deferred Contract Costs [Member]
Deferred logistics visibility solutions costs1,735 2,196
Contract Liabilities [Member]
Deferred revenue[1]794 1,098
Deferred Revenue - Other [Member]
Deferred revenue[1]281 227
Deferred Maintenance and SaaS Revenue [Member]
Deferred revenue[1]5,540 5,072
Deferred Logistics Visibility Solutions Product Revenue [Member]
Deferred revenue[1] $ 8,749 $ 10,932
[1]The Company records deferred revenues when cash payments are received or due in advance of the Company's performance. For the three- and six-month periods ended June 30, 2019 and 2020, the Company recognized revenue of $6,891 and $2,426, respectively, and $6,238 and $4,600, respectively, that was included in the deferred revenue balance at the beginning of each reporting period. The Company expects to recognize as revenue these deferred revenue balances before the year 2025, when the services are performed and, therefore, satisfies its performance obligation to the customers.

Revenue Recognition - Schedul_3

Revenue Recognition - Schedule of Deferred Revenue (Details) (Parenthetical) - USD ($) $ in Thousands3 Months Ended6 Months Ended
Jun. 30, 2020Jun. 30, 2019Jun. 30, 2020Jun. 30, 2019
Revenue from Contract with Customer [Abstract]
Revenue recognized $ 2,426 $ 6,891 $ 4,600 $ 6,238

Prepaid Expenses and Other As_3

Prepaid Expenses and Other Assets - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in ThousandsJun. 30, 2020Dec. 31, 2019
Prepaid Expense and Other Assets [Abstract]
Finance receivables, current $ 740 $ 893
Prepaid expenses2,547 3,221
Contract assets783 1,335
Other current assets1,647 1,921
Prepaid expenses and other current assets $ 5,717 $ 7,370 [1]
[1]Derived from audited balance sheet as of December 31, 2019.

Inventory (Details Narrative)

Inventory (Details Narrative) - USD ($) $ in ThousandsJun. 30, 2020Dec. 31, 2019
Inventory Disclosure [Abstract]
Inventory valuation reserves $ 600 $ 487

Inventory - Schedule of Invento

Inventory - Schedule of Inventories (Details) - USD ($) $ in ThousandsJun. 30, 2020Dec. 31, 2019
Inventory Disclosure [Abstract]
Components $ 7,725 $ 8,183
Work in process61 210
Finished goods7,551 7,988
Inventory, Net $ 15,337 $ 16,381 [1]
[1]Derived from audited balance sheet as of December 31, 2019.

Fixed Assets (Details Narrative

Fixed Assets (Details Narrative) - USD ($) $ in Thousands3 Months Ended6 Months Ended
Jun. 30, 2020Jun. 30, 2019Jun. 30, 2020Jun. 30, 2019
Property, Plant and Equipment [Line Items]
Depreciation and amortization expense $ 651 $ 190 $ 1,386 $ 379
Computer Software [Member]
Property, Plant and Equipment [Line Items]
Amortization expense $ 130 $ 133 $ 261 $ 266

Fixed Assets - Schedule of Fixe

Fixed Assets - Schedule of Fixed Assets (Details) - USD ($) $ in ThousandsJun. 30, 2020Dec. 31, 2019
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross $ 13,722 $ 17,051
Accumulated depreciation and amortization(6,738)(8,811)
Property, plant and equipment, net6,984 8,240 [1]
Installed Products [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross1,425 3,180
Computer Software [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross5,618 5,635
Computer and Electronic Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross4,497 6,231
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross1,434 1,364
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross $ 748 $ 641
[1]Derived from audited balance sheet as of December 31, 2019.

Intangible Assets and Goodwil_2

Intangible Assets and Goodwill (Details Narrative) - USD ($) $ in Thousands3 Months Ended6 Months Ended
Jun. 30, 2020Jun. 30, 2019Jun. 30, 2020Jun. 30, 2019
Finite-Lived Intangible Assets [Line Items]
Weighted amortization period for intangible assets9 years
Amortization expense $ 1,333 $ 280 $ 2,665 $ 473
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted amortization period for intangible assets11 years 10 months 25 days
Trademarks and Trade Names [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted amortization period for intangible assets4 years 6 months
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted amortization period for intangible assets9 years 9 months 18 days
Technology [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted amortization period for intangible assets7 years
Favorable Contract Interests [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted amortization period for intangible assets4 years
Covenant Not to Compete [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted amortization period for intangible assets5 years

Intangible Assets and Goodwil_3

Intangible Assets and Goodwill - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands6 Months Ended12 Months Ended
Jun. 30, 2020Dec. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross Carrying Amount $ 40,441 $ 40,476
Finite-Lived Intangible Assets, Accumulated Amortization(6,665)(4,002)
Finite-Lived Intangible Assets, Net, Total33,776 36,474
Indefinite-Lived Intangible Assets (Excluding Goodwill), Gross165 165
Indefinite-Lived Intangible Assets (Excluding Goodwill)165 165
Intangible Assets Gross40,606 40,641
Intangible Assets, Accumulated Amortization(6,665)(4,002)
Total33,941 36,639 [1]
Trademark and Tradename [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross Carrying Amount7,553 7,553
Finite-Lived Intangible Assets, Accumulated Amortization(890)(488)
Finite-Lived Intangible Assets, Net, Total6,663 7,065
Indefinite-Lived Intangible Assets (Excluding Goodwill), Gross61 61
Indefinite-Lived Intangible Assets (Excluding Goodwill) $ 61 $ 61
Trademark and Tradename [Member] | Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Lives (In Years)3 years3 years
Trademark and Tradename [Member] | Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Lives (In Years)15 years15 years
Customer List [Member]
Finite-Lived Intangible Assets [Line Items]
Indefinite-Lived Intangible Assets (Excluding Goodwill), Gross $ 104 $ 104
Indefinite-Lived Intangible Assets (Excluding Goodwill)104 104
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross Carrying Amount19,264 19,299
Finite-Lived Intangible Assets, Accumulated Amortization(1,920)(1,108)
Finite-Lived Intangible Assets, Net, Total $ 17,344 $ 18,191
Customer Relationships [Member] | Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Lives (In Years)9 years9 years
Customer Relationships [Member] | Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Lives (In Years)12 years12 years
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross Carrying Amount $ 2,117 $ 2,117
Finite-Lived Intangible Assets, Accumulated Amortization(1,548)(1,436)
Finite-Lived Intangible Assets, Net, Total $ 569 $ 681
Patents [Member] | Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Lives (In Years)7 years7 years
Patents [Member] | Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Lives (In Years)11 years11 years
Technology [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Lives (In Years)7 years7 years
Finite-Lived Intangible Assets, Gross Carrying Amount $ 10,911 $ 10,911
Finite-Lived Intangible Assets, Accumulated Amortization(1,903)(634)
Finite-Lived Intangible Assets, Net, Total $ 9,008 $ 10,277
Favorable Contract Interest [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Lives (In Years)4 years4 years
Finite-Lived Intangible Assets, Gross Carrying Amount $ 388 $ 388
Finite-Lived Intangible Assets, Accumulated Amortization(283)(234)
Finite-Lived Intangible Assets, Net, Total $ 105 $ 154
Covenant Not to Compete [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Lives (In Years)5 years5 years
Finite-Lived Intangible Assets, Gross Carrying Amount $ 208 $ 208
Finite-Lived Intangible Assets, Accumulated Amortization(121)(102)
Finite-Lived Intangible Assets, Net, Total $ 87 $ 106
[1]Derived from audited balance sheet as of December 31, 2019.

Intangible Assets and Goodwil_4

Intangible Assets and Goodwill - Schedule of Finite-lived Intangible Assets, Future Amortization Expense (Details) - USD ($) $ in ThousandsJun. 30, 2020Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
2020 (remaining) $ 2,665
20215,153
20214,479
20224,434
20232,021
20241,894
Thereafter13,130
Finite-Lived Intangible Assets, Net, Total $ 33,776 $ 36,474

Stock-Based Compensation (Detai

Stock-Based Compensation (Details Narrative) - USD ($) $ / shares in Units, $ in ThousandsMar. 13, 2019Jun. 30, 2020Jun. 30, 2019Jun. 30, 2020Jun. 30, 2019Mar. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting descriptionVest and become exercisable in full on December 31, 2022 if the volume weighted average price of the Company's common stock during a consecutive 30 trading day period (the "30 Day VWAP") reaches $12.00 at any point prior to December 31, 2022, and (ii) options to purchase 350,000 shares of the Company's common stock to Mr. Wolfe and options to purchase 150,000 shares of the Company's common stock to Mr. Mavrommatis (the "New Closing Options"), which options are subject to the terms of the 2018 Plan, have an exercise price of $6.00 per share, and will vest and become exercisable immediately upon the Company achieving a 30 Day VWAP of $10.00.
Risk free interest rate1.17%14.10%
Expected stock price volatility44.70%24.20%
Expected life of awards6 years3 years
Weighted average fair value of options granted during the period $ 2.58 $ 2.58 $ 2.72
Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options granted to purchase shares of common stock1,160,000
Options exercise price per share $ 6.10
Share-based compensation expense $ 411 $ 161 $ 843 $ 297
Share-based compensation, fair value of options vested1,012 271
Share-based compensation, intrinsic value of options exercised225 112
Share-based compensation, nonvested awards, not yet recognized4,672 $ 4,672
Share-based compensation, nonvested awards, not yet recognized, period for recognition4 years 2 months 27 days
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense499 440 $ 1,048 887
Share-based compensation, nonvested awards, not yet recognized4,001 $ 4,001
Share-based compensation, nonvested awards, not yet recognized, period for recognition2 years 4 months 24 days
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense67 $ 0 $ 195 $ 0
Share-based compensation, nonvested awards, not yet recognized $ 500 $ 500
Share-based compensation, nonvested awards, not yet recognized, period for recognition1 year 8 months 12 days
Geometric Brownian Motion [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk free interest rate0.70%
Expected stock price volatility47.00%
Expected life of awards6 years
Weighted average fair value of options granted during the period $ 1.27 $ 1.27
Closing Bonus Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options exercise price per share $ 6
New Singing Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options exercise price per share $ 6.28
2018 Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options exercise price per share $ 6.28
Chief Executive Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options granted to purchase shares of common stock350,000 350,000
Chief Financial Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options granted to purchase shares of common stock150,000 150,000
Mr. Wolfe [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options granted to purchase shares of common stock150,000
Options exercise price per share $ 10

Stock-Based Compensation - Sche

Stock-Based Compensation - Schedule of Stock Options Activity (Details) - Stock Option [Member] $ / shares in Units, $ in Thousands6 Months Ended
Jun. 30, 2020USD ($)$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options, Outstanding at Beginning of Year | shares4,078,000
Options, Granted | shares1,160,000
Options, Exercised | shares(140,000)
Options, Forfeited or Expired | shares(1,305,000)
Options, Outstanding at end of period | shares3,793,000
Options, Exercisable at end of period | shares925,000
Weighted-average Exercise Price, Outstanding at Beginning of Year | $ / shares $ 5.79
Weighted-average Exercise Price, Granted | $ / shares6.10
Weighted-average Exercise Price, Exercised | $ / shares4.28
Weighted-average Exercise Price, Forfeited or Expired | $ / shares6.04
Weighted-average Exercise Price, Outstanding at end of period | $ / shares5.85
Weighted-average Exercise Price, Exercisable at end of period | $ / shares $ 5.64
Weighted-Average Remaining Contractual Term9 years
Weighted-Average Remaining Contractual Term, Exercisable6 years
Aggregate Intrinsic Value, Ending | $ $ 161
Aggregate Intrinsic Value, Exercisable | $ $ 56

Stock-Based Compensation - Sc_2

Stock-Based Compensation - Schedule of Fair Value Stock Option Assumptions (Details) - $ / shares6 Months Ended
Jun. 30, 2020Jun. 30, 2019Mar. 31, 2019
Share-based Payment Arrangement [Abstract]
Expected volatility44.70%24.20%
Expected life of options (in years)6 years3 years
Risk free interest rate1.17%14.10%
Dividend yield0.00%0.00%
Weighted average fair value of options granted during the period $ 2.58 $ 2.72

Stock-Based Compensation - Sc_3

Stock-Based Compensation - Schedule of Non-vested Restricted Stock Activity (Details)6 Months Ended
Jun. 30, 2020$ / sharesshares
Restricted Stock [Member]
Number of Non-vested Shares | shares877,000
Number of Non-vested Shares, Granted | shares318,000
Number of Non-vested Shares, Vested | shares(252,000)
Number of Non-vested Shares, Forfeited | shares(50,000)
Number of Non-vested Shares | shares893,000
Weighted- Average Grant Date Fair Value, Non-vested, Beginning of Year | $ / shares $ 6.17
Weighted- Average Grant Date Fair Value, Granted | $ / shares4.97
Weighted- Average Grant Date Fair Value, Vested | $ / shares6.16
Weighted- Average Grant Date Fair Value, Forfeited | $ / shares6.24
Weighted- Average Grant Date Fair Value, Non-vested, End of Period | $ / shares $ 5.75
Restricted Stock Units (RSUs) [Member]
Number of Non-vested Shares | shares253,000
Number of Non-vested Shares, Granted | shares
Number of Non-vested Shares, Vested | shares(127,000)
Number of Non-vested Shares, Forfeited | shares(5,000)
Number of Non-vested Shares | shares121,000
Weighted- Average Grant Date Fair Value, Non-vested, Beginning of Year | $ / shares $ 5.60
Weighted- Average Grant Date Fair Value, Granted | $ / shares
Weighted- Average Grant Date Fair Value, Vested | $ / shares5.60
Weighted- Average Grant Date Fair Value, Forfeited | $ / shares5.60
Weighted- Average Grant Date Fair Value, Non-vested, End of Period | $ / shares $ 5.60

Net Loss Per Share (Details Nar

Net Loss Per Share (Details Narrative) - shares6 Months Ended
Jun. 30, 2020Jun. 30, 2019
Earnings Per Share [Abstract]
Antidilutive securities excluded from computation of earnings per share, amount12,027,000 4,636,100

Net Loss Per Share - Schedule o

Net Loss Per Share - Schedule of Net Loss Per Share Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands3 Months Ended6 Months Ended
Jun. 30, 2020Mar. 31, 2020Jun. 30, 2019Mar. 31, 2019Jun. 30, 2020Jun. 30, 2019
Earnings Per Share [Abstract]
Net loss attributable to common stockholders $ (3,766) $ (4,549) $ (2,585) $ (2,194) $ (8,315) $ (4,779)
Weighted-average common shares outstanding - basic and diluted29,399 17,678 29,216 17,650
Net loss attributable to common stockholders - basic and diluted $ (0.13) $ (0.15) $ (0.28) $ (0.27)

Short-Term Bank Debt and Long_3

Short-Term Bank Debt and Long-Term Debt (Details Narrative) - USD ($) $ / shares in Units, $ in ThousandsMay 13, 2020Jun. 30, 2020Jun. 30, 2019Jun. 30, 2020Jun. 30, 2019
Credit Agreement [Member]
Proceeds from long term debt $ 30,000
Restricted deposit amount $ 3,000 3,000
Debt issuance costs742 742
Amortization of debt issuance costs18 37
Interest expense383 $ 0 743 $ 0
Notes Payable [Member]
Debt, principal amount $ 5,000 $ 5,000
Debt interest rate10.00%10.00%
Debt maturity dateSep. 30,
2020
Debt conversion price per share $ 1,000 $ 1,000
Convertible Unsecured Promissory Notes [Member] | Investors [Member]
Debt instrument, descriptionOn May 13, 2020, the Company and the Investors amended and restated the Notes to, among other things, (i) remove the conversion feature of the Notes, (ii) provide for certain mandatory prepayment obligations of the Company on or following October 1, 2020, and (iii) extend the maturity date of the Notes to March 31, 2021
Two Loan Facilities [Member] | Credit Agreement [Member]
Debt, principal amount $ 30,000 $ 30,000
Term A Facility [Member] | Credit Agreement [Member]
Debt, principal amount $ 20,000 $ 20,000
Debt interest rate4.73%4.73%
Term B Facility [Member] | Credit Agreement [Member]
Debt, principal amount $ 10,000 $ 10,000
Debt interest rate5.89%5.89%
Revolving Facility [Member] | Credit Agreement [Member]
Debt, principal amount $ 10,000 $ 10,000
Debt term5 years
Revolving credit facility
Debt interest rate descriptionThe interest rate for the Revolving Facility is, with respect to NIS-denominated loans, Hapoalim's prime rate + 2.5%, and with respect to US dollar-denominated loans, LIBOR + 4.6%. In addition, the Company pays a 1% commitment fee on the unutilized and uncancelled availability under the Revolving Facility.

Short-Term Bank Debt and Long_4

Short-Term Bank Debt and Long-Term Debt - Schedule of Long Term Debt (Details) - USD ($) $ in ThousandsJun. 30, 2020Dec. 31, 2019
Debt Disclosure [Abstract]
Short-term bank debt bearing interest at 17% per annum $ 187 $ 685
Current maturities of long-term debt4,141 2,688
Notes payable5,000 5,000
Long-term debt - less current maturities $ 24,001 $ 43,400

Short-Term Bank Debt and Long_5

Short-Term Bank Debt and Long-Term Debt - Schedule of Maturities of Long Term Debt (Details) - USD ($) $ in ThousandsJun. 30, 2020Dec. 31, 2019
Debt Disclosure [Abstract]
2021 $ 4,141
20225,238
20235,359
202413,404
Long term debt28,142
Less: Current portion4,141 $ 2,688
Total $ 24,001 $ 43,400

Accounts Payable and Accrued _3

Accounts Payable and Accrued Expenses (Details Narrative)6 Months Ended
Jun. 30, 2020
Payables and Accruals [Abstract]
Warranty term descriptionThe Company's products are warranted against defects in materials and workmanship for a period of one to three years from the date of acceptance of the product by the customer.
Extended warranty coverage term60 months

Accounts Payable and Accrued _4

Accounts Payable and Accrued Expenses - Schedule of Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in ThousandsJun. 30, 2020Dec. 31, 2019
Payables and Accruals [Abstract]
Accounts payable $ 10,298 $ 15,400
Accrued warranty652 632
Accrued compensation5,622 5,517
Contract liabilities572 849
Government authorities3,642 2,172
Other current liabilities176 310
Accounts payable and accrued expenses $ 20,962 $ 24,880 [1]
[1]Derived from audited balance sheet as of December 31, 2019.

Accounts Payable and Accrued _5

Accounts Payable and Accrued Expenses - Schedule of Product Warranty Liability (Details) - USD ($) $ in Thousands6 Months Ended
Jun. 30, 2020Jun. 30, 2019
Payables and Accruals [Abstract]
Accrued warranty reserve, beginning of period $ 775 $ 422
Accrual for product warranties issued368 152
Product replacements and other warranty expenditures(355)(139)
Expiration of warranties(18)(100)
Accrued warranty reserve, end of period[1] $ 770 $ 335
[1]Includes non-current accrued warranty in other long-term liabilities at December 31, 2019 and June 30, 2020 of $110 and $118, respectively

Accounts Payable and Accrued _6

Accounts Payable and Accrued Expenses - Schedule of Product Warranty Liability (Details) (Parenthetical) - USD ($) $ in ThousandsJun. 30, 2020Dec. 31, 2019
Payables and Accruals [Abstract]
Accrued warranty in other liabilities $ 118 $ 110

Stockholders' Equity (Details N

Stockholders' Equity (Details Narrative) - USD ($) $ / shares in Units, $ in ThousandsMay 14, 2020Jun. 30, 2020Jun. 30, 2020Dec. 31, 2019Oct. 03, 2019
Equity, Class of Treasury Stock [Line Items]
Preferred stock, shares authorized50,000 50,000 50,000
Preferred stock, par value $ 0.01 $ 0.01 $ 0.01
Equity Distribution Agreement [Member] | Canaccord Genuity LLC [Member]
Equity, Class of Treasury Stock [Line Items]
Proceeds from offering price $ 25,000
Commission percentage3.00%
Sales Agreement [Member] | Canaccord Genuity LLC [Member]
Equity, Class of Treasury Stock [Line Items]
Sale of stock810,000
Proceeds from sale of stock $ 4,000
Commissions $ 125,000
Undesignated [Member]
Equity, Class of Treasury Stock [Line Items]
Preferred stock, shares authorized50,000 50,000
Series A Preferred Stock [Member]
Equity, Class of Treasury Stock [Line Items]
Preferred stock, shares authorized100,000 100,000
Preferred stock, shares issued50,000
Preferred stock, liquidation price per share $ 1,000 $ 1,000
Preferred stock, liquidation preference descriptionThe Series A Preferred Stock has a liquidation preference equal to the greater of (i) the original issuance price of $1,000.00 per share, subject to certain adjustments (the "Series A Issue Price"), plus all accrued and unpaid dividends thereon (except in the case of a deemed liquidation event, then 150% of such amount) and (ii) the amount such holder would have received if the Series A Preferred Stock had converted into common stock immediately prior to such liquidation.
Number of shares issued for dividends1,927,000
Preferred stock, voting rightsFrom and after the delivery of a Series A Voting Activation Notice, all holders of the Series A Preferred Stock will be entitled to vote with the holders of common stock as a single class on an as-converted basis (provided, however, that any holder of Series A Preferred Stock shall not be entitled to cast votes for the number of shares of common stock issuable upon conversion of such shares of Series A Preferred Stock held by such holder that exceeds the quotient of (1) the aggregate Series A Issue Price for such shares of Series A Preferred Stock divided by (2) $5.57 (subject to adjustment for stock splits, stock dividends, combinations, reclassifications and similar events, as applicable)). So long as shares of Series A Preferred Stock are outstanding and convertible into shares of common stock that represent at least 10% of the voting power of the common stock, or the Investors or their affiliates continue to hold at least 33% of the aggregate amount of Series A Preferred Stock issued to the Investors on the Original Issuance Date, the consent of the holders of at least a majority of the outstanding shares of Series A Preferred Stock will be necessary for the Company to, among other things, (i) liquidate the Company or any operating subsidiary or effect any deemed liquidation event (as such term is defined in the Charter), except for a deemed liquidation event in which the holders of Series A Preferred Stock receive an amount in cash not less than the Redemption Price (as defined below), (ii) amend the Company's organizational documents in a manner that adversely affects the Series A Preferred Stock, (iii) issue any securities that are senior to, or equal in priority with, the Series A Preferred Stock or issue additional shares of Series A Preferred Stock to any person other than the Investors or their affiliates, (iv) incur indebtedness above the agreed-upon threshold, (v) change the size of the Company's board of directors to a number other than seven, or (vi) enter into certain affiliated arrangements or transactions.
Dividend in arrears $ 0
Conversion price per share $ 7.319 $ 7.319
Redemption, descriptionAt any time after the third anniversary of the Original Issuance Date, subject to certain conditions, the Company may redeem the Series A Preferred Stock for an amount per share, equal to the greater of (i) the product of (x) 1.5 multiplied by (y) the sum of the Series A Issue Price, plus all accrued and unpaid dividends and (ii) the product of (x) the number of shares of common stock issuable upon conversion of such Series A Preferred Stock multiplied by (y) the volume weighted average price of the common stock during the 30 consecutive trading day period ending on the trading date immediately prior to the date of such redemption notice or, if calculated in connection with a deemed liquidation event, the value ascribed to a share of common stock in such deemed liquidation event (the "Redemption Price"). Further, at any time (i) after the 66-month anniversary of the Original Issuance Date, (ii) following delivery of a mandatory conversion notice by us, or (iii) upon a deemed liquidation event, subject to Delaware law governing distributions to stockholders, the holders of the Series A Preferred Stock may elect to require us to redeem all or any portion of the outstanding shares of Series A Preferred Stock for an amount per share equal to the Redemption Price.
Series A Preferred Stock [Member] | Minimum [Member]
Equity, Class of Treasury Stock [Line Items]
Preferred stock, dividend rate7.50%
Series A Preferred Stock [Member] | Maximum [Member]
Equity, Class of Treasury Stock [Line Items]
Preferred stock, dividend rate17.50%

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Loss (Details Narrative) - USD ($) $ in Thousands3 Months Ended6 Months Ended
Jun. 30, 2020Jun. 30, 2019Jun. 30, 2020Jun. 30, 2019
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive gain (loss) foreign currency translation adjustment $ 406 $ (46) $ (1,920) $ (58)
Foreign currency transaction gains (losses)112 $ (4)(141) $ (30)
Long-Term Debt [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Foreign currency transaction gains (losses) $ 805 $ (90)

Accumulated Other Comprehensi_4

Accumulated Other Comprehensive Loss - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands3 Months Ended6 Months Ended
Jun. 30, 2020Jun. 30, 2019Jun. 30, 2020Jun. 30, 2019
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Foreign currency items, Balance at Beginning $ 265 $ (388)
Foreign currency items, Net current period change(1,920)(58)
Foreign currency items, Balance at End $ (1,655) $ (446)(1,655)(446)
Unrealized gain (losses) on investments, Balance at Beginning (47)
Unrealized gain (losses) on investments, Net current period change 47
Unrealized gain (losses) on investments, Balance at End
Accumulated other comprehensive loss, Balance at Beginning265 [1](435)
Accumulated other comprehensive loss, Net current period change406 (46)(1,920)(11)
Accumulated other comprehensive loss, Balance at End $ (1,655) $ (446) $ (1,655) $ (446)
[1]Derived from audited balance sheet as of December 31, 2019.

Segment Information (Details Na

Segment Information (Details Narrative)6 Months Ended
Jun. 30, 2020Integer
Segment Reporting [Abstract]
Number of reportable segment1

Segment Information - Schedule

Segment Information - Schedule of Revenues and Long Lived Assets By Geographical Region (Details) - USD ($) $ in Thousands3 Months Ended6 Months Ended
Jun. 30, 2020Jun. 30, 2019Jun. 30, 2020Jun. 30, 2019Dec. 31, 2019
Total Revenue $ 25,765 $ 16,274 $ 56,564 $ 29,885
Long lived assets6,984 6,984 $ 8,240
United States [Member]
Total Revenue10,845 15,475 23,953 28,435
Long lived assets1,623 1,623 1,931
Israel [Member]
Total Revenue9,135 18,875
Long lived assets2,419 2,419 2,285
Other [Member]
Total Revenue5,785 $ 799 13,736 $ 1,450
Long lived assets $ 2,942 $ 2,942 $ 4,024

Income Taxes (Details Narrative

Income Taxes (Details Narrative)6 Months Ended
Jun. 30, 2020Jun. 30, 2019
Income Tax Disclosure [Abstract]
Effective tax reconciliation rate12.00%0.00%

Leases (Details Narrative)

Leases (Details Narrative)6 Months Ended
Jun. 30, 2020
Options to extend lease termUp to five years
Minimum [Member]
Operating lease, remaining lease term1 year
Maximum [Member]
Operating lease, remaining lease term7 years

Leases - Schedule of Components

Leases - Schedule of Components of Lease Expense (Details) - USD ($) $ in Thousands3 Months Ended6 Months Ended
Jun. 30, 2020Jun. 30, 2019Jun. 30, 2020Jun. 30, 2019
Leases [Abstract]
Short term lease cost $ 164 $ 100 $ 293 $ 144

Leases - Schedule of Cash Flow

Leases - Schedule of Cash Flow Information and Non-cash Activity of Operating Leases (Details) $ in Thousands6 Months Ended
Jun. 30, 2020USD ($)
Leases [Abstract]
Right-of-use assets obtained in exchange for lease obligations $ 2,259

Leases - Schedule of Weighted A

Leases - Schedule of Weighted Average Remaining Lease Term and Discount Rate (Details)Jun. 30, 2020
Leases [Abstract]
Weighted-average remaining lease term (in years)4 years
Weighted-average discount rate3.28%

Leases - Scheduled Maturities o

Leases - Scheduled Maturities of Operating Lease Liabilities (Details) $ in ThousandsJun. 30, 2020USD ($)
Leases [Abstract]
July - December 2020 $ 1,650
20212,091
20221,809
20231,539
20241,360
20251,505
Thereafter248
Total lease payments10,202
Less: Imputed interest(1,514)
Present value of lease liabilities $ 8,688

Fair Value of Financial Instr_3

Fair Value of Financial Instruments - Schedule of Fair Value of Financial Instruments (Details) - Fair Value, Inputs, Level 2 [Member] $ in ThousandsJun. 30, 2020USD ($)
Long term debt, carrying amount $ 28,142
Long term debt, fair value $ 28,142

Concentration of Customers (Det

Concentration of Customers (Details Narrative)6 Months Ended
Jun. 30, 2020Jun. 30, 2019
Revenues [Member]
Concentration risk, percentage10.00%
Revenues [Member] | One Customer [Member]
Concentration risk, percentage23.00%
Revenues [Member] | Two Customer [Member]
Concentration risk, percentage34.00%
Accounts Receivables [Member]
Concentration risk, percentage10.00%
Accounts Receivables [Member] | Two Customer [Member]
Concentration risk, percentage10.00%
Finance Receivables [Member] | Customer One [Member]
Concentration risk, percentage22.00%
Finance Receivables [Member] | Customer Two [Member]
Concentration risk, percentage20.00%

Commitments and Contingencies (

Commitments and Contingencies (Details Narrative) - Brasil Commercial Ltda [Member] - USD ($) $ in ThousandsAug. 14, 2018Jun. 30, 2020
Aggregated amount of claims during period $ 10,680
Remaining Claim After Administrative Decisions [Member]
Aggregated amount of claims during period $ 182