Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 28, 2019 | Jun. 30, 2018 | |
Document And Entity Information | |||
Entity Registrant Name | ID SYSTEMS INC | ||
Entity Central Index Key | 0000049615 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity a Well-known Seasoned Issuer | No | ||
Entity a Voluntary Filer | No | ||
Entity's Reporting Status Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business Flag | true | ||
Entity Emerging Growth Company | false | ||
Entity Ex Transition Period | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 65,600,000 | ||
Entity Common Stock, Shares Outstanding | 18,213,978 | ||
Trading Symbol | IDSY | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2018 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 10,159,000 | $ 5,097,000 |
Restricted cash | 307,000 | 306,000 |
Investments - short term | 394,000 | 1,201,000 |
Accounts receivable, net of allowance for doubtful accounts of $87,000 and $67,000 in 2017 and 2018, respectively | 9,247,000 | 8,746,000 |
Financing receivables - current, net of allowance for doubtful accounts of $-0- in 2017 and 2018 | 1,036,000 | 1,295,000 |
Inventory, net | 4,649,000 | 4,586,000 |
Deferred costs - current | 3,660,000 | 4,296,000 |
Prepaid expenses and other current assets | 3,208,000 | 3,627,000 |
Total current assets | 32,660,000 | 29,154,000 |
Investments - long term | 4,131,000 | 10,278,000 |
Financing receivables - less current portion | 1,254,000 | 1,557,000 |
Deferred costs - less current portion | 5,409,000 | 4,302,000 |
Fixed assets, net | 2,149,000 | 2,747,000 |
Goodwill | 7,318,000 | 7,318,000 |
Intangible assets, net | 4,705,000 | 5,417,000 |
Other assets | 177,000 | 159,000 |
Total assets | 57,803,000 | 60,932,000 |
Current liabilities: | ||
Accounts payable and accrued expenses | 8,027,000 | 7,440,000 |
Deferred revenue - current | 7,902,000 | 9,711,000 |
Acquisition related contingent consideration and payable - current | 946,000 | 1,923,000 |
Total current liabilities | 16,875,000 | 19,074,000 |
Deferred revenue - less current portion | 9,186,000 | 7,738,000 |
Acquisition related contingent consideration - less current portion | 854,000 | |
Deferred rent | 208,000 | 295,000 |
Total liabilities | 26,269,000 | 27,961,000 |
Commitments and Contingencies (Note 20) | ||
STOCKHOLDERS' EQUITY | ||
Preferred stock; authorized 5,000,000 shares, $0.01 par value; none issued | ||
Common stock; authorized 50,000,000 shares, $0.01 par value; 18,327,000 and 19,178,000 shares issued at December 31, 2017 and 2018, respectively; shares outstanding, 17,440,000 and 18,166,000 at December 31, 2017 and 2018, respectively | 192,000 | 183,000 |
Additional paid-in capital | 138,693,000 | 133,569,000 |
Accumulated deficit | (101,180,000) | (95,368,000) |
Accumulated other comprehensive loss | (435,000) | (578,000) |
Treasury stock; 887,000 and 1,012,000 common shares at cost at December 31, 2017 and 2018, respectively | (5,736,000) | (4,835,000) |
Total stockholders' equity | 31,534,000 | 32,971,000 |
Total liabilities and stockholders' equity | $ 57,803,000 | $ 60,932,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts, accounts receivable current | $ 67,000 | $ 87,000 |
Allowance for doubtful accounts, financial receivables current | $ 0 | $ 0 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares issued | ||
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares issued | 19,178,000 | 18,327,000 |
Common stock, shares outstanding | 18,166,000 | 17,440,000 |
Treasury stock, shares | 1,012,000 | 887,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue: | |||
Total Revenue | $ 53,064,000 | $ 40,958,000 | $ 36,822,000 |
Cost of Revenues: | |||
Total Cost of revenue | 27,266,000 | 20,031,000 | 18,528,000 |
Gross profit | 25,798,000 | 20,927,000 | 18,294,000 |
Operating expenses: | |||
Selling, general and administrative expenses | 24,671,000 | 20,480,000 | 19,427,000 |
Research and development expenses | 6,863,000 | 4,538,000 | 5,235,000 |
Total Operating expenses | 31,534,000 | 25,018,000 | 24,662,000 |
Loss from operations | (5,736,000) | (4,091,000) | (6,368,000) |
Interest income | 262,000 | 253,000 | 285,000 |
Interest expense | (173,000) | (342,000) | (293,000) |
Other (expense) income, net | (165,000) | (1,000) | 6,000 |
Net loss before income taxes | (5,812,000) | (4,181,000) | (6,370,000) |
Income tax benefit - sale of NJ R&D tax credits | 311,000 | ||
Net loss | $ (5,812,000) | $ (3,870,000) | $ (6,370,000) |
Net loss per share - basic and diluted | $ (0.34) | $ (0.26) | $ (0.49) |
Weighted average common shares outstanding -basic and diluted | 17,233,000 | 14,961,000 | 12,984,000 |
Products [Member] | |||
Revenue: | |||
Total Revenue | $ 36,897,000 | $ 23,552,000 | $ 21,366,000 |
Cost of Revenues: | |||
Total Cost of revenue | 22,638,000 | 13,453,000 | 14,036,000 |
Services [Member] | |||
Revenue: | |||
Total Revenue | 16,167,000 | 17,406,000 | 15,456,000 |
Cost of Revenues: | |||
Total Cost of revenue | $ 4,628,000 | $ 6,578,000 | $ 4,492,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (5,812,000) | $ (3,870,000) | $ (6,370,000) |
Other comprehensive (loss) income, net: | |||
Unrealized (loss) gain on investments, net | (98,000) | (103,000) | (5,000) |
Reclassification of net realized investment (gains) losses included in net loss | 164,000 | 1,000 | (6,000) |
Foreign currency translation adjustment | 77,000 | (373,000) | 408,000 |
Total other comprehensive income (loss), net | 143,000 | (475,000) | 397,000 |
Comprehensive loss | $ (5,669,000) | $ (4,345,000) | $ (5,973,000) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Treasury Stock [Member] | Total |
Balance at Dec. 31, 2015 | $ 129,000 | $ 110,116,000 | $ (85,128,000) | $ (500,000) | $ (4,047,000) | $ 20,570,000 |
Balance, shares at Dec. 31, 2015 | 14,211,000 | |||||
Net loss | (6,370,000) | (6,370,000) | ||||
Foreign currency translation adjustment | 408,000 | 408,000 | ||||
Unrealized loss on investments, net of realized amounts | (11,000) | (11,000) | ||||
Shares issued pursuant to exercise of stock options | 70,000 | 70,000 | ||||
Shares issued pursuant to exercise of stock options, shares | 20,000 | |||||
Issuance of restricted stock | ||||||
Issuance of restricted stock, shares | 566,000 | |||||
Forfeiture of restricted shares | ||||||
Forfeiture of restricted shares, shares | (219,000) | |||||
Shares withheld pursuant to exercise of stock options | (323,000) | (323,000) | ||||
Stock based compensation - restricted stock | 908,000 | 908,000 | ||||
Stock based compensation - options and performance shares | 750,000 | 750,000 | ||||
Balance at Dec. 31, 2016 | $ 129,000 | 111,844,000 | (91,498,000) | (103,000) | (4,370,000) | 16,002,000 |
Balance, shares at Dec. 31, 2016 | 14,578,000 | |||||
Net loss | (3,870,000) | (3,870,000) | ||||
Foreign currency translation adjustment | (373,000) | (373,000) | ||||
Unrealized loss on investments, net of realized amounts | (102,000) | (102,000) | ||||
Shares issued pursuant to exercise of stock options | $ 3,000 | 1,274,000 | 1,277,000 | |||
Shares issued pursuant to exercise of stock options, shares | 271,000 | |||||
Issuance of restricted stock | $ 19,000 | (19,000) | ||||
Issuance of restricted stock, shares | 240,000 | |||||
Forfeiture of restricted shares | $ (1,000) | 1,000 | ||||
Forfeiture of restricted shares, shares | (58,000) | |||||
Shares withheld pursuant to exercise of stock options | (465,000) | (465,000) | ||||
Stock based compensation - restricted stock | 1,682,000 | 1,682,000 | ||||
Stock based compensation - options and performance shares | 755,000 | 755,000 | ||||
Shares issued pursuant to an underwritten public offering, net of issuance costs of $1,200,000 | $ 30,000 | 16,035,000 | 16,065,000 | |||
Shares issued pursuant to an underwritten public offering, net of issuance costs of $1,200,000, shares | 3,000,000 | |||||
Shares issued pursuant to Keytroller acquisition | $ 3,000 | 1,997,000 | 2,000,000 | |||
Shares issued pursuant to Keytroller acquisition, shares | 296,000 | |||||
Balance at Dec. 31, 2017 | $ 183,000 | 133,569,000 | (95,368,000) | (578,000) | (4,835,000) | 32,971,000 |
Balance, shares at Dec. 31, 2017 | 18,327,000 | |||||
Net loss | (5,812,000) | (5,812,000) | ||||
Foreign currency translation adjustment | 77,000 | 77,000 | ||||
Unrealized loss on investments, net of realized amounts | 66,000 | |||||
Shares issued pursuant to exercise of stock options | $ 2,000 | 968,000 | 970,000 | |||
Shares issued pursuant to exercise of stock options, shares | 169,000 | |||||
Issuance of restricted stock | $ 4,000 | (4,000) | ||||
Issuance of restricted stock, shares | 434,000 | |||||
Forfeiture of restricted shares | ||||||
Forfeiture of restricted shares, shares | (48,000) | |||||
Shares withheld pursuant to exercise of stock options | (249,000) | (249,000) | ||||
Stock based compensation - restricted stock | 1,803,000 | 1,803,000 | ||||
Stock based compensation - options and performance shares | 360,000 | 360,000 | ||||
Reclassification of realized losses on investments, net of unrealized amounts | 66,000 | 66,000 | ||||
Shares issued relating to acquisition contingent consideration | $ 3,000 | 1,997,000 | 2,000,000 | |||
Shares issued relating to acquisition contingent consideration, shares | 296,000 | |||||
Shares repurchased pursuant to vesting of restricted stock | (652,000) | (652,000) | ||||
Balance at Dec. 31, 2018 | $ 192,000 | $ 138,693,000 | $ (101,180,000) | $ (435,000) | $ (5,736,000) | $ 31,534,000 |
Balance, shares at Dec. 31, 2018 | 19,178,000 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Statement of Stockholders' Equity [Abstract] | |
Issuance costs on shares issued pursuant to an underwritten public offering | $ 1,200,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities (net of net assets acquired): | |||
Net loss | $ (5,812,000) | $ (3,870,000) | $ (6,370,000) |
Adjustments to reconcile net loss to cash (used in) provided by operating activities: | |||
Inventory reserve | 321,000 | 313,000 | 205,000 |
Stock based compensation expense | 2,163,000 | 2,437,000 | 1,658,000 |
Depreciation and amortization | 1,561,000 | 1,132,000 | 685,000 |
Bad debt expense | 31,000 | 115,000 | 117,000 |
Change in contingent consideration | 169,000 | 94,000 | |
Other non-cash items | 85,000 | (69,000) | 2,000 |
Changes in: | |||
Accounts receivable | (554,000) | 1,597,000 | 1,174,000 |
Financing receivables | 562,000 | 1,344,000 | 832,000 |
Inventory | (384,000) | 87,000 | 3,027,000 |
Prepaid expenses and other assets | 401,000 | (138,000) | (1,120,000) |
Deferred costs | (471,000) | 1,790,000 | (3,758,000) |
Deferred revenue | (361,000) | 186,000 | 2,939,000 |
Accounts payable and accrued expenses | 587,000 | (1,099,000) | (1,874,000) |
Net cash (used in) provided by operating activities | (1,702,000) | 3,919,000 | (2,483,000) |
Cash flows from investing activities: | |||
Acquisition | (7,373,000) | ||
Capital expenditures | (251,000) | (386,000) | (505,000) |
Purchases of investments | (3,235,000) | (11,083,000) | (956,000) |
Proceeds from the sale and maturities of investments | 10,082,000 | 1,113,000 | 932,000 |
Net cash (used in) provided by investing activities | 6,596,000 | (17,729,000) | (529,000) |
Cash flows from financing activities: | |||
Net proceeds from underwritten public offering | 16,065,000 | ||
Borrowings under revolving credit facility | 11,655,000 | 14,650,000 | |
Repayments under revolving credit facility | (14,648,000) | (11,657,000) | |
Proceeds from exercise of stock options | 721,000 | 1,277,000 | 70,000 |
Common stock repurchased | (652,000) | ||
Net cash provided by financing activities | 69,000 | 14,349,000 | 3,063,000 |
Effect of foreign exchange rate changes on cash and cash equivalents | 100,000 | (413,000) | 433,000 |
Net increase in cash, cash equivalents and restricted cash | 5,063,000 | 126,000 | 484,000 |
Cash, cash equivalents and restricted cash - beginning of period | 5,403,000 | 5,277,000 | 4,793,000 |
Cash, cash equivalents and restricted cash - end of period | 10,466,000 | 5,403,000 | 5,277,000 |
Reconciliation of cash, cash equivalents, and restricted cash, beginning of period | |||
Cash and cash equivalents | 5,097,000 | 4,972,000 | 4,489,000 |
Restricted cash | 306,000 | 305,000 | 304,000 |
Cash, cash equivalents, and restricted cash, beginning of period | 5,403,000 | 5,277,000 | 4,793,000 |
Cash and cash equivalents | 10,159,000 | 5,097,000 | 4,972,000 |
Restricted cash | 307,000 | 306,000 | 305,000 |
Cash, cash equivalents, and restricted cash, end of period | 10,466,000 | 5,403,000 | 5,277,000 |
Cash paid for: | |||
Taxes | |||
Interest | 130,000 | 175,000 | |
Non-cash investing and financing activities: | |||
Unrealized (loss) gain on investments | 66,000 | (102,000) | (11,000) |
Shares withheld pursuant to stock issuance | 249,000 | 465,000 | $ 323,000 |
Value of shares issued relating to acquisition contingent consideration | 2,000,000 | ||
Value of shares issued pursuant to acquisition | 2,000,000 | ||
Contingent consideration relating to acquisition | $ 2,683,000 |
Description of Business and Liq
Description of Business and Liquidity | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Description of Business and Liquidity | NOTE 1 - DESCRIPTION OF BUSINESS AND LIQUIDITY I.D. Systems, Inc. and its subsidiaries (collectively, the “Company,” “we,” “our” or “us”) develop, market and sell wireless machine-to-machine solutions for managing and securing high-value enterprise assets. These assets include industrial vehicles such as forklifts and airport ground support equipment, rental vehicles and transportation assets, such as dry van trailers, refrigerated trailers, railcars and containers. The Company’s patented wireless asset management systems utilize radio frequency identification (RFID), Wi-Fi, Bluetooth, satellite or cellular communications, and sensor technology and software to address the needs of organizations to control, track, monitor and analyze their assets. Our cloud-based analytics software application for both industrial trucks and logistics assets is designed to provide a single, integrated view of asset activity across multiple locations, generating enterprise-wide benchmarks and peer-industry comparisons to provide an even deeper layer of insights into asset operations. Analytics determines key performance indicators relating to the performance of managed assets. The Company’s solutions enable customers to achieve tangible economic benefits by making timely, informed decisions that increase the safety, security, revenue, productivity and efficiency of their operations. The Company outsources its hardware manufacturing operations to contract manufacturers. I.D. Systems, Inc. was incorporated in Delaware in 1993 and commenced operations in January 1994. Liquidity On July 17, 2017, the Company closed an underwritten public offering consisting of 2,608,695 shares of common stock at a price per share of $5.75. In addition, the underwriters of the public offering exercised in full their option to purchase an additional 391,304 shares of common stock. Including this option exercise, the aggregate gross proceeds from the offering of a total of 2,999,999 shares of common stock, before deducting discounts and commissions and offering expenses, were approximately $17.3 million. Net proceeds from the public offering were approximately $16.1 million. The Company used a portion of the net proceeds from the offering to fund the Keytroller Acquisition (as defined below) and the remainder of the net proceeds for general corporate purposes. As of December 31, 2018, we had cash (including restricted cash), cash equivalents and marketable securities of $15.0 million and working capital of $15.8 million. The Company’s primary sources of cash are cash flows from operating activities and the Company’s holdings of cash, cash equivalents and investments from the sale of common stock. To date, the Company has not generated sufficient cash flows solely from operating activities to fund its operations. We believe our 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 March 31, 2020. Keytroller Acquisition On July 31, 2017, we, together with our wholly-owned subsidiary Keytroller, LLC, a Delaware limited liability company (“Keytroller”), acquired substantially all of the assets of Keytroller, LLC, a Florida limited liability company (the “Keytroller Acquisition”). The business we acquired in the Keytroller Acquisition develops and markets electronic products for managing forklifts and construction vehicles. The Keytroller Acquisition gives us a full suite of industrial fleet management product offerings capable of covering any sized fleet and budget and provides our industrial truck business more scale, both from a product and revenue standpoint and markets its line of forklift management devices mainly through a network of lift truck dealers, offering solutions for different fleet sizes at a wide range of price points. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [A] Principles of consolidation: The consolidated financial statements include the accounts of I.D. Systems, Inc. and its wholly owned subsidiaries, Asset Intelligence, LLC (“AI”), I.D. Systems GmbH (“IDS GmbH”), I.D. Systems (UK) Ltd (formerly Didbox Ltd.) (“IDS Ltd”) and Keytroller (which, as noted above, are collectively referred to herein as the “Company”). All material intercompany balances and transactions have been eliminated in consolidation. [B] Use of estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“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 stock-based compensation arrangements, measurements of fair value of assets acquired and liabilities assumed and acquisition-related contingent consideration, realization of deferred tax assets, the impairment of tangible and intangible assets, inventory reserves, allowance for doubtful accounts, warranty reserves and deferred revenue and costs. Actual results could differ from those estimates. [C] 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 generally exceed FDIC limits. Restricted cash at December 31, 2017 and 2018 consists of cash held in escrow for purchases from a vendor. [D] Investments: The Company’s investments include debt securities, U.S. Treasury Notes, government and state agency bonds, corporate bonds and commercial paper, which are classified as either available for sale, held to maturity or trading, depending on management’s investment intentions relating to these securities. All of the Company’s investments are currently classified as available for sale. Available for sale securities are measured at fair value based on quoted market values of the securities, with the unrealized gain and (losses) reported as comprehensive income or (loss). The Company has classified as short-term those securities that mature within one year and all other securities are classified as long-term. Realized gains and losses from the sale of available for sale securities are determined on a specific-identification basis. Net realized gains and losses from the sale of investment securities available for sale are included in “other income” in the consolidated statement of operations. Dividend and interest income are recognized when earned. [E] Accounts receivable: Accounts receivable are recorded at the invoiced amount and do not bear interest. Amounts collected on trade accounts receivable are included in net cash provided by operating activities in the consolidated statements of cash flows. The Company maintains reserves against its accounts receivable for potential losses. Allowances for uncollectible accounts are estimated based on the Company’s periodic review of accounts receivable balances. In establishing the required allowance, management considers our customers’ financial condition, the amount of receivables in dispute, and the current receivables aging and current payment patterns. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. Accounts receivable are net of an allowance for doubtful accounts in the amount of $87,000 and $67,000 in 2017 and 2018, respectively. The Company does not have any off-balance sheet credit exposure related to its customers. [F] Financing receivables: Financing receivables consists of sales-type lease receivables from the sale of the Company’s products and services. 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 future minimum lease payments. Amounts collected on sales-type leases are included in net cash provided by operating activities in the consolidated statements of cash flows. Interest income is recognized monthly over the lease term using the effective-interest method. The allowance for uncollectable minimum lease payments represents the Company’s best estimate of the amount of credit losses in the Company’s existing notes and sales-type lease receivable. The allowance is determined on an individual lease basis if it is probable that the Company will not collect all principal and interest contractually due. The Company considers our customers’ financial condition and historical payment patterns in determining the customers’ probability of default. The impairment is measured based on the present value of expected future cash flows discounted at the note’s effective interest rate. There were no impairment losses recognized for the years ended December 31, 2016, 2017 and 2018. The Company does not accrue interest when a lease is considered impaired. When the ultimate collectability of the principal balance of the impaired lease is in doubt, all cash receipts on impaired lease are applied to reduce the principal amount of such lease until the principal has been recovered and are recognized as interest income thereafter. Impairment losses are charged against the allowance and increases in the allowance are charged to bad debt expense. Leases are written off against the allowance when all possible means of collection have been exhausted and the potential for recovery is considered remote. The Company resumes accrual of interest when it is probable that the Company will collect the remaining principal and interest of an impaired lease. Leases become past due based on how recently payments have been received. [G] Revenue recognition: The Company’s revenue is derived from: (i) sales of our wireless asset management systems and spare parts; (ii) remotely hosted SaaS agreements and post-contract maintenance and support agreements; (iii) services, which includes training and technical support; and (iv) periodically, leasing arrangements. 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. Revenue is recognized when obligations under the terms of a contract with our customer are satisfied; generally this occurs with the transfer of control of our wireless asset management systems, spare parts, or services. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services. Sales, value add, and other taxes we collect concurrent 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 our base warranties continue to be recognized as expense when the products are sold (see Note 13). We recognize revenue for remotely hosted SaaS agreements and post-contract maintenance and support agreements beyond our standard warranties over the life of the contract. Our industrial truck and connected vehicle wireless asset management systems consist of on-asset hardware, communication infrastructure, SaaS, and hosting infrastructure. The Company’s system is typically implemented by the customer or a third party and, as a result, revenue related to the on-asset hardware is recognized when control of the hardware is transferred to the customer, which usually is upon delivery of the system and contractual obligations have been satisfied. Revenue related to the SaaS and hosting infrastructure performance obligation is recognized over time as access to the SaaS and hosting infrastructure is provided to the customer. In some instances, we are also responsible for providing 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. Our logistics visibility solutions systems (formerly “transportation asset management”) consist of on-asset hardware, communications and SaaS services. The logistics visibility solutions system does not have stand-alone value to the customer separate from the SaaS services provided and, therefore, we consider 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 are deferred, recorded, and classified as a current and long-term liability and a current and long-term asset, respectively. 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 customer service contracts typically range from one to five years. Spare parts sales are reflected in product revenues and recognized on the date of customer receipt of the part. In addition, the service revenue for our logistics visibility monitoring equipment relates to charges for monthly messaging usage and value-added features charges. The usage fee is a monthly fixed charge based on the expected utilization according to the rate plan chosen by the customer. Service revenue generally commences upon equipment installation and customer acceptance and is recognized over the period such services are provided. The Company also enters into remotely hosted SaaS agreements and post-contract maintenance and support agreements for its wireless asset management systems. Revenue is recognized ratably over the service periods and the cost of providing these services is expensed as incurred. Deferred revenue also includes prepayment of extended maintenance, hosting and support contracts. The Company also derives revenue under leasing arrangements. Such arrangements provide for monthly payments covering the 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. Our contracts with customers may include multiple performance obligations. For such arrangements, we allocate revenue to each performance obligation based on its relative standalone selling price. We generally determine 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 three to five years because the asset relates to the services transferred to the customer during the contract term of three to five years. Sales taxes collected from customers and remitted to governmental authorities are accounted for on a net basis and therefore are excluded from revenues in the Consolidated Statements of Operations. [H] Deferred costs: Deferred product costs consist of logistics visibility solutions equipment costs deferred in accordance with our revenue recognition policy. The Company will continue to evaluate the realizability of the carrying amount of the deferred contract costs on a quarterly basis. To the extent the carrying value of the deferred contract costs exceed the contract revenue, an impairment loss will be recognized. [I] 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 valuation reserves are established in order to report inventories at the lower of cost or net realizable value in the consolidated balance sheet. The determination of inventory valuation reserves requires management to make estimates and judgments on the future salability of inventories. Valuation reserves for obsolete and slow-moving inventory are estimated based on assumptions of future sales forecasts, product life cycle expectations, the impact of new product introductions, production requirements, and specific identification of items, such as product discontinuance or engineering/material changes and by comparing the inventory levels to historical usage rates. [J] Fixed assets and depreciation: Fixed assets are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the assets, which range from three to ten years. Leasehold improvements are amortized using the straight-line method over the terms of the respective leases, or their estimated useful lives, whichever is shorter. For website development costs, the Company capitalizes costs incurred during the application development stage. Costs related to preliminary project activities and post-implementation activities are expensed as incurred. Internal-use software is amortized on a straight-line basis over its estimated useful life, generally three years. [K] Long-lived assets: Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the assets to the future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets and would be charged to earnings. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. [L] Business Combinations: Goodwill represents costs in excess of fair values assigned to the underlying net assets of acquired businesses. Goodwill and intangible assets deemed to have indefinite lives are not amortized. Intangible assets other than goodwill are amortized over their useful lives unless the lives are determined to be indefinite. Intangible assets are carried at cost, less accumulated amortization. Intangible assets consist of trademarks and trade name, patents, customer relationships and other intangible assets. The Company tests goodwill and other intangible assets annually, or when a triggering event occurs between annual impairment tests, to determine if impairment exists and if the use of indefinite lives is currently applicable. For purposes of the goodwill impairment test, the Company’s product lines are aggregated within one reporting unit. For the years ended December 31, 2016, 2017 and 2018, the Company has not incurred an impairment charge. The Company re-measures the fair value of the contingent consideration at each reporting period and any change in the fair value from either the passage of time or events occurring after the acquisition date, is recorded in earnings in the accompanying consolidated statement of operations. Actual results could differ from such estimates in future periods based on the re-measurement of the fair value. [M] Product warranties: The Company typically provides a one-year warranty on its products. Estimated future warranty costs are accrued in the period that the related revenue is recognized. These estimates are derived from historical data and trends of product reliability and costs of repairing and replacing defective products. [N] Research and development: Research and development costs are charged to expense as incurred and consists primarily of salaries and related expenses, supplies and contractor costs. Research and development costs were $5,235,000, $4,538,000 and $6,863,000 in 2016, 2017 and 2018, respectively. [O] Patent costs: Costs incurred in connection with acquiring patent rights are charged to expense as incurred. [P] Benefit plan: The Company maintains a retirement plan under Section 401(k) of the Internal Revenue Code, which covers all eligible employees. All employees with U.S. source income are eligible to participate in the plan immediately upon employment. The Company did not make any contributions to the plan during the years ended December 31, 2016, 2017 and 2018. [Q] Rent expense: Expense related to the Company’s facilities leases is recorded on a straight-line basis over the respective lease terms. The difference between rent expense incurred and the amounts required to be paid in accordance with the lease term is recorded as deferred rent and is amortized over the lease term. [R] Stock-based compensation: The Company accounts for stock-based employee compensation for all share-based payments, including grants of stock options and restricted stock, as an operating expense based on their fair values on grant date. The Company recorded stock-based compensation expense of $1,658,000, $2,437,000 and $2,163,000 for the years ended December 31, 2016, 2017 and 2018, respectively. The Company estimates the fair value of share-based option awards on the grant date using an option pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service period in the Company’s consolidated statement of operations. The Company estimates forfeitures at the time of grant in order to estimate the amount of share-based awards that will ultimately vest. The estimate is based on the Company’s historical rates of forfeitures. Estimated forfeitures are revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. [S] Income taxes: The Company uses the asset and liability method of accounting for deferred income taxes. Deferred income taxes are measured by applying enacted statutory rates to net operating loss carryforwards and to the differences between the financial reporting and tax bases of assets and liabilities. Deferred tax assets are reduced, if necessary, by a valuation allowance if it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company recognizes uncertainty in income taxes in the financial statements using a recognition threshold and measurement attribute of a tax position taken or expected to be taken in a tax return. The Company applies the “more-likely-than-not” recognition threshold to all tax positions, commencing at the adoption date of the applicable accounting guidance, which resulted in no unrecognized tax benefits as of such date. Additionally, there have been no unrecognized tax benefits subsequent to adoption. The Company has opted to classify interest and penalties that would accrue according to the provisions of relevant tax law as selling, general, and administrative expenses, in the consolidated statement of operations. For the years ended December 31, 2016, 2017 and 2018, there was no such interest or penalty. The Company files federal income tax returns and separate income tax returns in various states. For federal and certain states, the 2015 through 2018 tax years remain open for examination by the tax authorities under the normal three-year statute of limitations. For certain other states, the 2014 through 2018 tax years remain open for examination by the tax authorities under a four-year statute of limitations. [T] Fair value of financial instruments: Cash and cash equivalents and investments in securities 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 receivable, accounts payable and other liabilities approximates their fair values due to the short period to maturity of these instruments. [U] Advertising and marketing expense: Advertising and marketing costs are expensed as incurred. Advertising and marketing expense for the years ended December 31, 2016, 2017 and 2018 amounted to $510,000, $538,000 and $996,000, respectively. [V] Commitments and contingencies: Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. [W] Recently issued accounting pronouncements: In August 2018, the Securities and Exchange Commission (the “SEC”) issued a final rule that amends certain of the SEC’s disclosure requirements, including requirements relating to disclosures about changes in stockholders’ equity. For Quarterly Reports on Form 10-Q, the final rule extends to interim periods the annual requirement in Rule 3-04 of Regulation S-X, to disclose (1) changes in stockholders’ equity and (2) the amount of dividends per share for each class of shares (as opposed to common stock only, as previously required). Pursuant to the final rule, registrants must now analyze changes in stockholders’ equity, in the form of a reconciliation, for “the current and comparative year-to-date [interim] periods, with subtotals for each interim period,” i.e., a reconciliation covering each period for which an income statement is presented. Rule 3-04 of Regulation S-X permits the disclosure of changes in stockholders’ equity (including dividend-per-share amounts) to be made either in a separate financial statement or in the notes to the financial statements. The final rule is effective for all filings made on or after November 5, 2018. SEC staff has indicated it would not object if a registrant’s first presentation of the changes in shareholders’ equity is included in its Form 10-Q for the quarter that begins after the effective date of the amendments. Therefore, the Company expects to conform to this rule in its Quarterly Report on Form 10-Q for the quarter ending March 31, 2019. Inasmuch as the Company has not paid dividends, the Company believes that the final rule will not have a material effect on its consolidated financial statements and disclosures. In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-15, “Intangibles-Goodwill and Other-Internal-Use Software (Topic 350): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract”, which align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). ASU 2018-15 is effective for the Company beginning in the first fiscal quarter of 2022, with early adoption permitted. The Company is currently evaluating the impact of this ASU on the consolidated financial statements. In June 2018, the FASB issued ASU 2018-07, “Compensation - Stock Compensation (Topic 718): Improvements to Non-employee Share-Based Accounting”. This guidance aligns the accounting for share-based payment transactions with non-employees to accounting for share-based payment transactions with employees. Companies are required to record a cumulative-effect adjustment (net of tax) to retained earnings as of the beginning of the fiscal year of the adoption. Upon transition, non-employee awards are required to be measured at fair value as of the adoption date. This standard will be effective for fiscal years beginning December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company does not expect the adoption of this standard to have a material impact on the consolidated financial statements. In February 2018, the FASB issued ASU 2018-02, “Income Statement - Reporting Comprehensive Income (Topic 220)”. The objective of the ASU is to allow a reclassification from accumulated comprehensive income (loss) to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act and will improve the usefulness of information reported to financial statement users. This ASU is effective for interim and annual reporting periods beginning after December 15, 2018, and early adoption is permitted. The Company does not expect the adoption of this standard to have a material impact on the consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, “Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting”. The FASB issued the update to provide clarity and reduce the cost and complexity when applying the guidance in Topic 718. The amendments in this update provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. This ASU was effective for public companies for fiscal years beginning after December 15, 2017, including interim periods. Early adoption is permitted. The adoption of this guidance did not have a material impact on the Company’s financial results. In January 2017, the FASB issued ASU 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 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 guidance is effective beginning fiscal year 2021. Early adoption is permitted. The Company is currently evaluating the impact of this ASU on the consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash,” which requires the inclusion of restricted cash with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This ASU was effective for public business entities for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The adoption of this guidance did not have a material impact on the Company’s financial results. In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments,” which provides clarification on how companies present and classify certain cash receipts and cash payments in the statement of cash flows. This ASU was effective for fiscal periods beginning after December 15, 2017 and interim periods within those fiscal years. Early adoption is permitted. If an entity early adopts the amendments in an interim period, any adjustments must be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. The adoption of this guidance did not have a material impact on the Company’s financial results. 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, 2019. The Company is currently evaluating the impact of this ASU on the consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases” (Topic 842), in order to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet for those leases classified as operating leases under previous GAAP. ASU 2016-02 requires that a lessee should recognize a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term on the balance sheet. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018 (including interim periods within those periods) using a modified retrospective approach and early adoption is permitted. The Company will adopt ASU 2016-02 in the first quarter of 2019. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. If an entity chooses the second option, the transition requirements for existing leases also apply to leases entered into between the date of initial application and the effective date. The entity must also recast its comparative period financial statements and provide the disclosures required by the new standard for the comparative periods. The Company will adopt the new standard on January 1, 2019 and use the effective date of initial application. Consequently, financial information will not be updated and the disclosures required under the new standard will not be provided for dates and periods before January 1, 2019. The new standard provides a number of optional practical expedients in transition. The Company expects to elect the “package of expedients”, which permits the Company not to reassess under the new standard the Company’s prior conclusions about lease identification and initial direct costs. The Company does not expect to elect the use-of hindsight or the practical expedient pertaining to land easements, the latter not being applicable to the Company. The new standard also provides practical expedients for the Company’s ongoing accounting. The Company currently expects to elect the short-term lease recognition exemption for all leases that qualify. This means, for those leases that qualify, the Company will not recognize ROU assets or lease liabilities, and this includes not recognizing ROU assets or lease liabilities for existing short-term leases of those assets in transition. The Company also expects to elect the practical expedient to not separate lease and non-lease components for all of its leases other than leases of real estate. The Company expects the most significant change will be related to the recognition of right-of-use assets and lease liabilities on the Company’s balance sheet for real estate operating leases. The Company is currently in the process of evaluating the impact of ASU 2016-02 on the Company’s outstanding leases and expects that as a result of the adoption of this guidance that it will record right-of-use assets and lease liabilities totaling approximately $2.8 million to $3.2 million primarily related to its real estate operating leases. The Company also expects that the adoption of this guidance will result in additional lease-related disclosures in the footnotes to its consolidated financial statements. In May 2014, the FASB issued ASU 2014-09 (Topic 606) “Revenue from Contracts with Customers.” Topic 606 |
Investments and Fair Value Meas
Investments and Fair Value Measurements | 12 Months Ended |
Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments and Fair Value Measurements | NOTE 3 - INVESTMENTS AND FAIR VALUE MEASUREMENTS The Company’s investments include debt securities, U.S. Treasury Notes, government and state agency bonds, corporate bonds and commercial paper which are classified as either available for sale, held to maturity or trading, depending on management’s investment intentions relating to these securities. As of December 31, 2017 and 2018, all of the Company’s investments are classified as available for sale. Available for sale securities are measured at fair value based on quoted market values of the securities, with the unrealized gain and (losses) reported as comprehensive income or (loss). For the years ended December 31, 2016, 2017 and 2018, the Company reported unrealized losses, net of realized amounts, of $(5,000), $(103,000) and $(98,000), respectively, on available for sale securities in total comprehensive loss. Realized gains and losses from the sale of available for sale securities are determined on a specific-identification basis. The Company has classified as short-term those securities that mature within one year. All other securities are classified as long-term. The following table summarizes the estimated fair value of investment securities designated as available for sale, classified by the contractual maturity date of the security as of December 31, 2018: Fair Value Due within one year $ 394,000 Due one year through three years 1,501,000 Due after three years 2,630,000 $ 4,525,000 The cost, gross unrealized gains (losses) and fair value of available for sale securities by major security type at December 31, 2018 and 2017 were as follows: Unrealized Unrealized Fair December 31, 2018 Cost Gain Loss Value Investments - short term U.S. Treasury Notes $ 302,000 $ 1,000 - $ 303,000 Corporate bonds and commercial paper 91,000 - - 91,000 Total investments - short term 393,000 1,000 394,000 Investments - long term U.S. Treasury Notes 1,569,000 - (2,000 ) 1,567,000 Government agency bonds 1,548,000 - (23,000 ) 1,525,000 Corporate bonds 1,062,000 - (23,000 ) 1,039,000 Total investments - long term 4,179,000 - (48,000 ) 4,131,000 Total investments - available for sale $ 4,572,000 $ 1,000 $ (48,000 ) $ 4,525,000 Unrealized Unrealized Fair December 31, 2017 Cost Gain Loss Value Investments - short term U.S. Treasury Notes $ 1,066,000 - (1,000 ) $ 1,065,000 Corporate bonds and commercial paper 136,000 - - 136,000 Total investments - short term 1,202,000 - (1,000 ) 1,201,000 Investments - long term U.S. Treasury Notes 3,367,000 - (37,000 ) 3,330,000 Government agency bonds 4,279,000 - (40,000 ) 4,239,000 Corporate bonds 2,744,000 - (35,000 ) 2,709,000 Total investments - long term 10,390,000 - (112,000 ) 10,278,000 Total investments - available for sale $ 11,592,000 $ - $ (113,000 ) $ 11,479,000 The Company utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those levels: ● Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities. ● Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. ● Level 3: Unobservable inputs that reflect the reporting entity’s estimates of market participant assumptions. At December 31, 2017 and 2018, the Company’s investments described above are classified as Level 1 for fair value measurement. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | NOTE 4 - REVENUE RECOGNITION The Company’s revenue is derived from: (i) sales of our wireless asset management systems and spare parts; (ii) remotely hosted SaaS agreements and post-contract maintenance and support agreements; (iii) services, which includes training and technical support; and (iv) periodically, leasing arrangements. 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. The following table presents our revenues disaggregated by revenue source for the years ended December 31, 2016, 2017 and 2018. Year Ended December 31, 2016 2017 2018 Industrial truck management Products $ 14,299,000 $ 17,481,000 $ 22,653,000 Services 5,543,000 6,224,000 7,348,000 19,842,000 23,705,000 30,001,000 Year Ended December 31, 2016 2017 2018 Connected vehicles Products $ - $ 43,000 $ 8,491,000 Services 1,142,000 2,930,000 1,086,000 1,142,000 2,973,000 9,577,000 Year Ended December 31, 2016 2017 2018 Logistics visibility solutions Products $ 7,067,000 $ 6,028,000 $ 5,753,000 Services 8,771,000 8,252,000 7,733,000 15,838,000 14,280,000 13,486,000 The balances of contract assets, and contract liabilities from contracts with customers as of December 31, 2017 and 2018 are as follows: December 31, 2017 2018 Current assets: Deferred sales commissions to employees $ - $ 585,000 Deferred costs $ 8,598,000 $ 9,069,000 Current liabilities: Deferred revenue -other (1) $ 2,589,000 $ 305,000 Deferred maintenance and SaaS revenue (1) 3,296,000 4,607,000 Deferred logistics visibility solutions product revenue (1) 11,564,000 12,176,000 17,449,000 17,088,000 Less: Current portion 9,711,000 7,902,000 Deferred revenue - less current portion $ 7,738,000 $ 9,186,000 (1) We record deferred revenues when cash payments are received or due in advance of our performance. For the years ended December 31, 2017 and 2018, the Company recognized revenue of 10,751,000 and $11,813,000, respectively, that was included in the deferred revenue balance at the beginning of each reporting period. The Company expects to recognize as revenue before year 2023, when it transfers those goods and services and, therefore, satisfies its performance obligation to the customers. We do not separately account for activation fees since no good or service is transferred to the customer. Therefore, the activation fee is included in the transaction price and allocated to the performance obligations in the contract and deferred/amortized over the life of the contract. Development projects with Avis Budget Car Rental, LLC In April 2015, we entered into a development project with Avis Budget Car Rental, LLC (“ABCR”), a subsidiary of Avis Budget Group Inc. (“Avis”), that included certain contractual milestones. This development project was completed during 2016 and the Company recognized milestone revenue of $255,000 for the year ended December 31, 2016 from the completion of milestones in accordance with the milestone method of revenue recognition. Milestone payments are recognized as revenue upon achievement of the milestone only if the following conditions are met: (i) there is substantive uncertainty at the date of entering into the arrangement that the milestone would be achieved; (ii) the milestone is commensurate with either the vendor’s performance to achieve the milestone or the enhancement of the value of the delivered item by the vendor; (iii) the milestone relates solely to past performance; and (iv) be reasonable in relation to the effort expended to achieve the milestone. On March 18, 2017 (the “SOW#4 Effective Date”), the Company entered into a statement of work (the “SOW#4”) with ABCR for 50,000 units of the Company’s cellular-enabled rental fleet car management system (the “System”) and maintenance and support of the System (“Maintenance Services”) for sixty months from installation of the equipment for the consideration of approximately $21,270,000. ABCR has an option to purchase additional units and has the option to renew the Maintenance Services period for an additional twelve months upon its expiry, and then after such 12-month period, ABCR can purchase additional Maintenance Services on a month-to-month basis (during which ABCR can terminate the Maintenance Services) for up to forty-eight additional months. The SOW#4 may be terminated by ABCR for cause (which is generally the Company’s material breach of its obligations under the SOW#4), for convenience (subject to a termination fee), upon a material adverse change to the Company, or for intellectual property infringement. The Company does not have the right to unilaterally terminate the SOW#4. In the event that ABCR terminates the SOW#4, then ABCR would be liable to the Company for the net present value of all future remaining charges under the SOW#4 at a negotiated discount rate per annum, with the payment due on the effective date of termination. The SOW#4 provides for a period of exclusivity commencing on the SOW#4 Effective Date and ending fourteen months after the SOW#4 Effective Date, which may be extended in six-month increments by Avis under certain conditions. Exclusivity under the SOW#4 ended on May 18, 2018. Avis has the right to cancel or accept the System and pay a lower price if the System cannot retrieve the necessary vehicle data from twenty-five makes and models six months after the SOW#4 Effective Date. The Company received an upfront payment of $3,290,000, consisting of a $2,000,000 initial payment for the units to be delivered, $902,000 for development of additional system enhancements and $388,000 for production readiness development. The upfront payment for the units is included in current deferred revenue at December 31, 2017. In September 2017, the Company and ABCR amended SOW#4 for out-of-scope system enhancements performed by the Company. The Company recognizes revenue on the development project, which was completed and approved in December 2017, on a proportional 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 recognized SOW#4 development project revenue of $2,470,000 and $-0- during the years ended December 31, 2017 and 2018, respectively. The Company recognized SOW#4 product revenue of $-0- and $8,491,000 during the years ended December 31, 2017 and 2018, respectively. The following is the amount of the transaction price that has not yet been recognized as revenue as of December 31, 2018, which is expected to be recognized by year 2023: 2019 2020 2021 2022 2023 Total Revenue expected to be recognized December 31, $ 1,887,000 $ 1,887,000 $ 1,887,000 $ 1,887,000 $ 801,000 $ 8,349,000 Part of the performance credit earnbacks and incentive payments (“performance bonus”) have been excluded from the disclosure table above because it was not included in the transaction price. That part of the performance bonus was excluded from the transaction price in accordance with the accounting guidance in Topic 606 on constraining estimates of variable consideration, including the following factors: ● The susceptibility of the consideration amount to factors outside the Company’s influence, including weather conditions and the risk of obsolescence of the promised goods and services. ● Whether the uncertainty about the consideration amount is not expected to be resolved for a long period of time. ● The Company’s experience with similar types of contracts. ● Whether the Company expects to offer price concessions or change the payment terms. ● The range of possible consideration amounts. On December 3, 2018 (the “SOW#5 Effective Date”), the Company entered into a statement of work (the “SOW#5”) with ABCR for 75,000 units of the Company’s System, Maintenance Services for sixty months from installation of the equipment and the development of additional features and functionality for the consideration of approximately $33,000,000. ABCR has an option to purchase additional units and has the option to renew the Maintenance Services period for an additional twelve months upon its expiry, and then after such 12-month period, ABCR can purchase additional Maintenance Services on a month-to-month basis (during which ABCR can terminate the Maintenance Services) for up to forty-eight additional months. The SOW#5 may be terminated by ABCR for cause (which is generally the Company’s material breach of its obligations under the SOW#5), for convenience (subject to a termination fee), upon a material adverse change to the Company, or for intellectual property infringement. The Company does not have the right to unilaterally terminate the SOW#5. In the event that ABCR terminates the SOW#4, then ABCR would be liable to the Company for the net present value of all future remaining charges under the SOW#5 at a negotiated discount rate per annum, with the payment due on the effective date of termination. The SOW#5 provides for a period of exclusivity commencing on the SOW#5 Effective Date and ending twelve months after the SOW#5 Effective Date, which may be extended in six-month increments by Avis under certain conditions. The Company did not recognize SOW#5 revenue during the year ended December 31, 2018. Arrangements with multiple performance obligations Our contracts with customers may include multiple performance obligations. For such arrangements, we allocate revenue to each performance obligation based on its relative standalone selling price. We generally determine 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. Practical expedients and exemptions We do 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 we recognize revenue at the amount to which we have the right to invoice for services performed. |
Financing Receivables
Financing Receivables | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Financing Receivables | NOTE 5 - FINANCING RECEIVABLES Financing receivables include notes and sales-type lease receivables from the sale of the Company’s products and services. The present value of net investment in sales-type lease receivable is principally for three to five-year leases of the Company’s product and is reflected net of unearned income of $164,000 and $114,000 at December 31, 2017 and 2018, respectively, at a weighted-average discount rate of 4% Scheduled maturities of minimum lease payments outstanding as of December 31, 2018 are as follows: Year ending December 31: 2019 $ 1,036,000 2020 741,000 2021 333,000 2022 128,000 2023 52,000 2,290,000 Less: Current portion 1,036,000 Total $ 1,254,000 |
Acquisition
Acquisition | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Acquisition | NOTE 6 - ACQUISITION On July 31, 2017, the Company completed the Keytroller Acquisition pursuant to an asset purchase agreement (the “Purchase Agreement”) by and among the Company, Keytroller, Keytroller, LLC, a Florida limited liability company (n/k/a Sparkey, LLC) (“Sparkey”) and the principals of Sparkey party thereto. Consideration for the Keytroller Acquisition included (i) $7,098,000 in cash paid at closing, (ii) 295,902 shares of our common stock issued at closing with a fair value of $2,000,000 and (iii) up to $3,000,000 of shares of our common stock as potential earn-out payments to be made on the first and second anniversaries of the closing date of the Keytroller Acquisition, computed in accordance with the terms of the Purchase Agreement. The potential earn-out payments were estimated at a fair value of $2,683,000. During the fourth quarter of 2017, the Company paid a post-closing working capital adjustment of $275,000. On September 14, 2018, the Company issued 296,000 shares for the earn-out payment for the for the twelve-month period ending on the first anniversary of the closing date of the Keytroller Acquisition. On September 14, 2018, the Company entered into an amendment to the Purchase Agreement effective as of August 1, 2018, which, among other things, fixed the second anniversary earn-out payment that Sparkey will be entitled to receive at 147,951 shares of the Company’s common stock as an earn-out payment for the twelve-month period ending on the second anniversary of the closing date of the Keytroller Acquisition and removes certain restrictions on the operations of the Company during such twelve-month period. As a result of this amendment, the second anniversary earn-out payment is no longer considered contingent consideration. The Company incurred acquisition-related expenses of approximately $301,000, which are included in selling, general and administrative expenses for the year ended December 31, 2017. The purchase method of accounting in accordance with ASC805, Business Combinations The changes in contingent consideration through December 31, 2018 is as follows: Balance as of December 31, 2017 $ 2,777,000 Change in contingent consideration 169,000 Payment of contingent consideration via issuance of shares (2,000,000 ) Settlement of contingent consideration (946,000 ) Balance as of December 31, 2018 $ - The following table summarizes the purchase price allocation based on estimated fair values of the net assets acquired at the acquisition date: Accounts receivable $ 835,000 Inventory 1,066,000 Other assets 42,000 Intangibles 5,086,000 Goodwill 5,481,000 Less: Current liabilities assumed (454,000 ) Net assets acquired $ 12,056,000 The goodwill is fully deductible for tax purposes, except the contingent consideration which is deductible only when paid. The results of operations of Keytroller have been included in the consolidated statement of operations as of the effective date of acquisition. The following revenue and operating income of Keytroller are included in the Company’s consolidated results of operations for the year ended December 31, 2017: Year Ended December 31, 2017 Revenues $ 3,468,000 Operating income $ 708,000 The following table represents the unaudited combined pro forma revenue and earnings for the years ended December 31, 2016 and 2017: The combined pro forma revenue and earnings for the years ended December 31, 2016 and 2017 were prepared as though the Keytroller Acquisition had occurred as of January 1, 2016. The pro forma results do not include any anticipated cost synergies or other effects of the planned integration of Keytroller. This summary is not necessarily indicative of what the results of operations would have been had the Keytroller Acquisition occurred during such period, nor does it purport to represent results of operations for any future periods. Year Ended Year Ended December 31, 2016 December 31, 2017 Historical Pro Forma Combined Historical Pro Forma Combined (Unaudited) (Unaudited) Revenues $ 36,822,000 $ 43,446,000 $ 40,958,000 $ 44,796,000 Operating loss (6,368,000 ) (5,505,000 ) (4,091,000 ) (3,617,000 ) Net loss per share - basic and diluted $ (0.49 ) $ (0.35 ) $ (0.26 ) $ (0.24 ) |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | NOTE 7 - INVENTORIES 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 valuation reserves of $266,000 and $119,000 at December 31, 2017 and 2018, respectively. Inventories consist of the following: December 31, 2017 2018 Components $ 1,083,000 $ 2,218,000 Finished goods, net 3,503,000 2,431,000 $ 4,586,000 $ 4,649,000 |
Fixed Assets
Fixed Assets | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets | NOTE 8 - FIXED ASSETS Fixed assets are stated at cost, less accumulated depreciation and amortization, and are summarized as follows: December 31, 2017 2018 Equipment $ 1,054,000 $ 1,114,000 Computer software and website development 5,610,000 5,633,000 Computer hardware 2,560,000 2,664,000 Furniture and fixtures 416,000 466,000 Automobiles 60,000 60,000 Leasehold improvements 181,000 181,000 9,881,000 10,118,000 Accumulated depreciation and amortization (7,134,000 ) (7,969,000 ) $ 2,747,000 $ 2,149,000 As of December 31, 2017 and 2018, the Company had expenditures of approximately $13,000 and $-0-, respectively, for computer software and website development which had not been placed in service. Depreciation expense is not recorded for such assets until they are placed in service. Depreciation and amortization expense for the years ended December 31, 2016, 2017 and 2018 was $549,000, $757,000 and $849,000, respectively. This includes amortization of costs associated with computer software and website development for the years ended December 31, 2016, 2017 and 2018 of $165,000, $410,000 and $528,000, respectively. The Company capitalizes in fixed assets the costs of software development and website development. Specifically, the assets comprise an implementation of Enterprise Resource Planning (ERP) software, enhancements to the VeriWise systems, and a customer interface website (which is the primary tool used to provide data to our customers). The website employs updated web architecture and improved functionality and features, including, but not limited to, customization at the customer level, enhanced security features, custom virtual electronic geofencing of landmarks, global positioning system (“GPS”)-based remote mileage reporting, and richer mapping capabilities. The Company capitalized the costs incurred during the “development” and “enhancement” stages of the software and website development. Costs incurred during the “planning” and “post-implementation/operation” stages of development were expensed. The Company capitalized $100,000 and $5,000for such projects for the years ended December 31, 2017 and 2018, respectively. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | NOTE 9 - INTANGIBLE ASSETS AND GOODWILL The following table summarizes identifiable intangible assets of the Company as of December 31, 2018 and 2017: December 31, 2018 Useful Lives (In Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortized: Customer relationships 10 $ 3,123,000 (442,000 ) 2,681,000 Trademark and tradename 10 - 15 1,367,000 (178,000 ) 1,189,000 Patents 11 1,489,000 (1,218,000 ) 271,000 Favorable contract interest 5 388,000 (137,000 ) 251,000 Covenant not to compete 4 208,000 (60,000 ) 148,000 6,575,000 (2,035,000 ) 4,540,000 Unamortized: Customer list 104,000 - 104,000 Trademark and Tradename 61,000 - 61,000 165,000 - 165,000 Total $ 6,740,000 $ (2,035,000 ) $ 4,705,000 December 31, 2017 Useful Lives (In Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortized: Customer relationships 10 $ 3,123,000 (130,000 ) 2,993,000 Trademark and tradename 10 - 15 1,367,000 (52,000 ) 1,315,000 Patents 11 1,489,000 (1,083,000 ) 406,000 Favorable contract interest 5 388,000 (40,000 ) 348,000 Covenant not to compete 4 208,000 (18,000 ) 190,000 6,575,000 (1,323,000 ) 5,252,000 Unamortized: Customer list 104,000 - 104,000 Trademark and Tradename 61,000 - 61,000 165,000 - 165,000 Total $ 6,740,000 $ (1,323,000 ) $ 5,417,000 The Company tests the goodwill and other intangible assets on an annual basis in the fourth quarter or more frequently if the Company believes indicators of impairment exist. As of December 31, 2017 and 2018, the Company determined that no impairment existed to the goodwill, customer list and trademark and trade name of its acquired intangibles. The Company also determined that the use of indefinite lives for the customer list and remaining trademark and trade name remains applicable at December 31, 2017 and 2018, as the Company expects to continue to derive future benefits from these intangible assets. Amortization expense for the years ended December 31, 2016, 2017 and 2018 was $136,000, $375,000 and $712,000, respectively. Estimated future amortization expense for each of the five succeeding fiscal years for these intangible assets is as follows: Year ending December 31: 2019 712,000 2020 712,000 2021 536,000 2022 462,000 2023 438,000 Thereafter 1,680,000 $ 4,540,000 There have been no changes in the carrying amount of goodwill from January 1, 2018 to December 31, 2018. |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | NOTE 10 - NET LOSS PER SHARE December 31, Basic and diluted loss per share 2016 2017 2018 Net loss $ (6,370,000 ) $ (3,870,000 ) $ (5,812,000 ) Weighted-average common shares outstanding - basic and diluted 12,984,000 14,961,000 17,233,000 Net loss per share - basic and diluted $ (0.49 ) $ (0.26 ) $ (0.34 ) Basic loss per share is calculated by dividing net loss 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. For the years ended December 31, 2016, 2017 and 2018, the basic and diluted weighted-average shares outstanding are the same, since the effect from the potential exercise of outstanding stock options, warrants and vesting of restricted stock and performance shares totalling 1,896,000, 1,831,000 and 1,788,000, respectively, would have been anti-dilutive due to the loss. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | NOTE 11 - STOCK-BASED COMPENSATION In June 2018, the Company’s stockholders approved the 2018 Incentive Plan (the “2018 Plan”) pursuant to which the Company may grant stock options, restricted stock and other equity-based awards with respect to up to an aggregate of 1,500,000 shares of common stock with a vesting period of approximately four to five years. There were 1,207,000 shares available for future issuance under the 2018 Plan at December 31, 2018. Upon the adoption of the 2018 Plan, the Company’s 2009 Non-Employee Director Equity Compensation Plan and the 2015 Equity Compensation Plan were frozen, and no new awards can be issued pursuant to such plans. The 2018 Plan is administered by the Compensation Committee of the Company’s Board of Directors, which has the authority to determine, among other things, the term during which an option may be exercised (not more than 10 years), the exercise price of an option and the vesting provisions. The Company recognizes all employee share-based payments in the statement of operations as an operating expense, based on their fair values on the applicable grant date. Effective August 15, 2018, Ron Konezny resigned from the Company’s Board of Directors. In connection with Mr. Konezny’s resignation, the Board of Directors accelerated the vesting of certain restricted shares and stock options granted to Mr. Konezny. The stock-based compensation expense resulting from the modification of the terms of the stock options and restricted stock was not material. On December 20, 2016, the Company and Kenneth Ehrman, its former Chief Executive Officer, entered into Amendment No. 2 to Severance Agreement, which amends the Severance Agreement dated September 22, 2009 (as amended, the “Ehrman Severance Agreement”). Under the terms of the Ehrman Severance Agreement, a pro-rata portion of Mr. Ehrman’s unvested stock options and restricted stock were partially vested based on the number of months elapsed since the date of grant as compared to the scheduled vesting date. Due to the modification of the terms of the stock option and restricted stock agreements, the Company recognized a $(26,000) reduction of stock-based compensation expense in the fourth quarter of 2016 which is included in the stock option and restricted stock stock-based compensation expense. [A] Stock options: A summary of the status of the Company’s stock options as of December 31, 2016, 2017 and 2018 and changes during the years then ended, is presented below: 2016 2017 2018 Weighted - Weighted - Weighted - Average Average Average Number of Exercise Number of Exercise Number of Exercise Shares Price Shares Price Shares Price Outstanding at beginning of year 1,212,000 $ 6.94 1,243,000 $ 5.08 1,290,000 $ 5.33 Granted 395,000 4.75 350,000 6.00 120,000 6.41 Exercised (20,000 ) 3.44 (271,000 ) 4.72 (169,000 ) 5.73 Forfeited or expired (344,000 ) 11.36 (32,000 ) 8.26 (21,000 ) 5.96 Outstanding at end of year 1,243,000 $ 5.08 1,290,000 $ 5.33 1,220,000 $ 5.37 Exercisable at end of year 822,000 $ 5.07 667,000 $ 5.11 695,000 $ 5.07 The following table summarizes information about stock options at December 31, 2018: Options Outstanding Options Exercisable Weighted - Average Remaining Weighted- Weighted- Exercise Number Contractual Average Number Average Prices ($) Outstanding Life in Years Exercise Price Outstanding Exercise Price 2.06 - 4.87 320,000 4 $ 4.03 240,000 $ 3.85 4.88 - 5.70 235,000 7 5.37 162,000 5.46 5.71 - 5.97 210,000 4 5.81 210,000 5.81 5.98 – 6.90 455,000 8 6.11 83,000 6.00 1,220,000 6 $ 5.37 695,000 $ 5.07 As of December 31, 2018 Weighted Average Remaining Aggregate Intrinsic Value Contractual Life in Years Options outstanding $ 558,000 6 Options exercisable $ 448,000 5 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: December 31, 2016 2017 2018 Expected volatility 43.6 % 42.4 % 42.8 % Expected life of options 4.0 years 4.0 years 4.4 years Risk free interest rate 1.27 % 1.69 % 2.72 % Dividend yield 0 % 0 % 0 % Weighted-average fair value of options granted during the year $ 1.68 $ 2.11 $ 2.46 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. For the years ended December 31, 2016, 2017 and 2018, the Company recorded $270,000, $411,000 and $397,000, respectively, of stock-based compensation expense in connection with the stock option grants. The fair value of options vested during the years ended December 31, 2016, 2017 and 2018 was $280,000, $291,000 and $413,000, respectively. The total intrinsic value of options exercised during the years ended December 31, 2016, 2017 and 2018 was $33,000, $375,000 and $162,000, respectively. As of December 31, 2018, there was $843,000 of total unrecognized compensation costs 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 2.43 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 the non-vested shares for the years ended December 31, 2016, 2017 and 2018 is as follows: Weighted - Average Number of Grant Non-vested Date Shares Fair Value Non-vested at January 1, 2016 575,000 $ 5.79 Granted 271,000 4.80 Vested (272,000 ) 5.34 Forfeited (182,000 ) 5.72 Non-vested at December 31, 2016 392,000 $ 5.45 Granted 240,000 6.26 Vested (194,000 ) 5.42 Forfeited (8,000 ) 5.69 Non-vested at December 31, 2017 430,000 $ 5.91 Granted 434,000 7.02 Vested (266,000 ) 6.07 Forfeited (30,000 ) 6.54 Non-vested at December 31, 2018 568,000 $ 6.65 For the years ended December 31, 2016, 2017 and 2018, the Company recorded $908,000, $1,682,000 and $1,803,000 respectively, of stock-based compensation expense in connection with the restricted stock grants. As of December 31, 2018, there was $2,615,000 of total unrecognized compensation cost related to non-vested shares. That cost is expected to be recognized over a weighted-average period of 2.6 years. [C] Performance Shares: In January 2016, the Company granted 295,000 performance shares to employees pursuant to the 2015 Equity Compensation Plan. The shares are unvested at the time of grant and, upon vesting, there are no contractual restrictions on the shares. The vesting of the shares is subject to the achievement of performance goals during a two-year period from the date of issuance, with the ability to achieve prorated vesting of the shares during interim annual measurement periods. If the performance goals are not met, the performance shares will not vest and will automatically be returned to the plan. If the performance goals are met, then the shares will be issued to the employees. The following table summarizes the activity relating to the Company’s performance shares for the years ended December 31, 2016, 2017 and 2018: Weighted- Number of Average Non-vested Grant Date Shares Fair Value Performance shares, non-vested, at January 1, 2016 - - Granted 295,000 $ 4.07 Vested - - Forfeited (34,000 ) 4.07 Performance shares, non-vested, at December 31, 2016 261,000 4.07 Granted - $ - Vested (100,000 ) 4.07 Forfeited (50,000 ) 4.07 Performance shares, non-vested, at December 31, 2017 111,000 4.07 Granted - $ - Vested (93,000 ) 4.07 Forfeited (18,000 ) 4.07 Performance shares, non-vested, December 31, 2018 - $ - For the years ended December 31, 2016, 2017 and 2018, the Company recorded $480,000 $344,000 and $(37,000) respectively, of stock-based compensation expense in connection with the performance shares. |
Revolving Credit Facility
Revolving Credit Facility | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Revolving Credit Facility | NOTE 12 - REVOLVING CREDIT FACILITY On December 18, 2015, the Company and AI entered into a loan and security agreement (the “Revolver”) with Siena Lending Group LLC. The Revolver provided a revolving credit facility in an aggregate principal amount of up to $7.5 million and a maturity date of December 18, 2017. Effective August 30, 2017, the Company terminated the Revolver. The Company did not incur an early termination penalty as a result of terminating the Revolver. |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Expenses | NOTE 13 - ACCOUNTS PAYABLE AND ACCRUED EXPENSES Accounts payable and accrued expenses consist of the following: December 31, 2017 2018 Accounts payable $ 6,233,000 $ 6,644,000 Accrued warranty 535,000 422,000 Accrued severance 100,000 - Accrued compensation 507,000 870,000 Other current liabilities 65,000 91,000 $ 7,440,000 $ 8,027,000 Included in accounts payable and accrued expenses at December 31, 2017 is accrued severance of $100,000 to Kenneth Ehrman, the former Chief Executive Officer of the Company. The Company’s products are warranted against defects in materials and workmanship for a period of 12 months 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 Consolidated Balance Sheets as of December 31, 2017 and 2018. The following table summarizes warranty activity during the years ended December 31, 2017 and 2018: Year Ended 2017 2018 Accrued warranty reserve, beginning of year $ 472,000 $ 535,000 Accrual for product warranties issued 253,000 192,000 Product replacements and other warranty expenditures (68,000 ) (182,000 ) Expiration of warranties (122,000 ) (123,000 ) Accrued warranty reserve, end of period $ 535,000 $ 422,000 |
Concentration of Customers
Concentration of Customers | 12 Months Ended |
Dec. 31, 2018 | |
Risks and Uncertainties [Abstract] | |
Concentration of Customers | NOTE 14 - CONCENTRATION OF CUSTOMERS For the year ended December 31, 2018 two customers accounted for 18% and 10% of the Company’s revenue and one customer accounted for 11% of the Company’s accounts receivable. Two customers accounted for 19% and 13% of finance receivables as of December 31, 2018. One customer accounted for 16% the Company’s revenue during the year ended and as of December 31, 2017 and two customers accounted for 14% and 11% of the Company’s accounts receivable as of December 31, 2017. One customer accounted for 14% of finance receivables as of December 31, 2017. One customer accounted for 18% the Company’s revenue during the year ended and as of December 31, 2016 and one customer accounted for 12% of the Company’s accounts receivable as of December 31, 2016. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Stockholders' Equity | NOTE 15 - STOCKHOLDERS’ EQUITY [A] Public Offering: On July 17, 2017, the Company closed an underwritten public offering consisting of 2,608,695 shares of common stock at a price per share of $5.75. In addition, the underwriters of the public offering exercised in full their option to purchase an additional 391,304 shares of common stock. Including this option exercise, the aggregate gross proceeds from the offering of a total of 2,999,999 shares of common stock, before deducting discounts and commissions and offering expenses, were approximately $17.3 million. Net proceeds from the public offering were approximately $16.1 million. The Company used a portion of the net proceeds from the offering to fund the Keytroller Acquisition and the remainder of the net proceeds for general corporate purposes. [B] Preferred stock: The Company is authorized to issue 5,000,000 shares of preferred stock, par value $0.01 per share. The Company’s Board of Directors has the authority to issue shares of preferred stock and to determine the price and terms of those shares. No shares of preferred stock are issued and outstanding. [C] Stock repurchase program: On November 3, 2010, the Company’s Board of Directors authorized the repurchase of issued and outstanding shares of the Company’s common stock having an aggregate value of up to $3,000,000 pursuant to a share repurchase program. The repurchases under the share repurchase program are made from time to time in the open market or in privately negotiated transactions and are funded from the Company’s working capital. The amount and timing of such repurchases is dependent upon the price and availability of shares, general market conditions and the availability of cash, as determined at the discretion of the Company’s management. All shares of common stock repurchased under the Company’s share repurchase program are held as treasury stock. The Company did not purchase any shares of its common stock under the share repurchase program during the years ended December 31, 2016 through 2018. As of December 31, 2018, the Company has purchased a total of approximately 310,000 shares of its common stock in open market transactions under the share repurchase program for an aggregate purchase price of approximately $1,340,000, or an average cost of $ 4.33 per share. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | NOTE 16 - ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Comprehensive 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 are as follows: Unrealized Accumulated Foreign gain (losses) other currency on comprehensive items investments income Balance at January 1, 2016 $ (500,000 ) $ - $ (500,000 ) Net current period change 408,000 (11,000 ) 397,000 Balance at December 31, 2016 (92,000 ) $ (11,000 ) (103,000 ) Net current period change (373,000 ) (102,000 ) (475,000 ) Balance at December 31, 2017 (465,000 ) $ (113,000 ) (578,000 ) Net current period change 77,000 66,000 143,000 Balance at December 31, 2018 $ (388,000 ) $ (47,000 ) (435,000 ) Income and expense accounts of foreign operations are translated at actual or weighted-average exchange rates during the period. Assets and liabilities of foreign operations that operate in a local currency environment are translated to U.S. dollars at the exchange rates in effect at the balance sheet date. Translation gains or losses are reported as components of accumulated other comprehensive income or loss in consolidated stockholders’ equity. Net translation gains or losses resulting from the translation of foreign currency financial statements and the effect of exchange rate changes on intercompany transactions of a long-term investment nature with IDS GmbH resulted in translation gains (losses) of $408,000, $(373,000) and $77,000 at December 31, 2016, 2017 and 2018, respectively, which are included in comprehensive loss in the Consolidated Statement of Changes in Stockholders’ Equity. Effective December 1, 2015, the intercompany transactions with IDS GmbH are not considered of a long-term investment nature and the effect of the exchange rate changes subsequent to December 1, 2015 on the intercompany transactions are included selling, general and administrative expenses in the Consolidated Statement of Operations. Gains and losses resulting from foreign currency transactions are included in determining net income or loss. Foreign currency transaction (losses) gains for the years ended December 31, 2016, 2017 and 2018 of $(437,000), $456,000 and $(214,000), respectively, are included in selling, general and administrative expenses in the Consolidated Statement of Operations. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 17 - INCOME TAXES At December 31, 2018, the Company had an aggregate net operating loss carryforward of approximately $84,702,000 for U.S. federal income tax purposes. At December 31, 2018, the Company had an aggregate net operating loss carryforward of approximately $65,359,000 for state income tax purposes and a foreign net operating loss carryforward of approximately $3,452,000. Substantially all of the net operating loss carryforwards expire from 2021 through 2037 for pre-2018 federal net operating loss carryforwards and from 2019 through 2038 for state purposes. The net operating loss carryforwards may be limited to use in any particular year based on Internal Revenue Code (“IRC”) Section 382 related to change of ownership restrictions. Section 382 of the IRC imposes an annual limitation on the utilization of NOL carryforwards based on long-term bond rates and the value of the corporation at the time of a change in ownership as defined by Section 382 of the IRC. In addition, future stock issuances may subject the Company to further limitations on the utilization of its net operating loss carryforwards under the same Internal Revenue Code provision. At December 31, 2018, the Company has New Jersey net operating loss carryforwards (“NJ NOLs”) included above in the approximate amount of $40,104,000 expiring through 2038, which are available to reduce future earnings which would otherwise be subject to state income tax. In 2017, the Company sold approximately $332,000 of NJ research and development tax credits, subject to a 6.2% seller’s allocation factor for approximately $311,000. On December 22, 2017, the U.S. President signed the Tax Cuts and Jobs Act (the “Tax Act”) into law. Effective January 1, 2018, among other changes, the Tax Act (1) reduces the U.S. federal corporate tax rate from 35 percent to 21 percent, (2) changes the rules relating to net operating loss carryforwards and carrybacks, (3) eliminates the corporate alternative minimum tax (“AMT”) and changes how existing AMT credits can be realized; and (4) requires companies to pay a one-time transition tax on certain unrepatriated earnings of foreign subsidiaries. The Company has elected to account for the Global Intangible Low-Taxed Income (“GILTI”) tax as a period cost in the year the tax is incurred. The Tax Act did not have a material impact on our consolidated financial statements since our deferred temporary differences in the United States are fully offset by a valuation allowance and we do not have any significant off shore earnings from which to record the mandatory transition tax. On December 22, 2017, the SEC issued guidance under Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (“SAB 118”) directing taxpayers to consider the impact of the Tax Act as “provisional” when it does not have the necessary information available, prepared or analyzed (including computations) in reasonable detail to complete its accounting for the change in tax law. The changes in the Tax Act are broad and complex. The final impacts of the Tax Act may differ from the Company’s estimates due to, among other things, changes in interpretations of the Tax Act, further legislation related to the Tax Act, changes in accounting standards for income taxes or related interpretations in response to the Tax Act, or any updates to estimates the Company has utilized to calculate the impacts of the Tax Act. The SEC has issued rules that would allow for a measurement period of up to one year after the enactment date of the Tax Act to finalize the related tax impacts. The Company completed its SAB 118 analysis and the impact on the Company’s consolidated financial statements for the year ended December 31, 2017 was immaterial, primarily because the Company has a valuation allowance on deferred tax assets. The Company has deferred tax assets of approximately $29,588,000 and $31,449,000 at December 31, 2017 and 2018, respectively. The increase in the deferred tax assets is primarily attributable to the net operating losses. The Company had other temporary differences between financial and tax reporting for stock-based compensation, fixed asset depreciation expense, deferred revenue, deferred expenses, bad debt reserves, inventory reserves, warranty reserves and acquisition-related expenses. For the year ended December 31, 2018, the Company’s valuation allowance increased to $27,568,000 compared to $26,112,000 as of December 31, 2017. The Company has provided a valuation allowance against the full amount of its deferred tax assets. The valuation allowance was established because of the uncertainty of realization of the deferred tax assets due to lack of sufficient history of generating taxable income. Realization is dependent upon generating sufficient taxable income prior to the expiration of the net operating loss carryforwards in future periods. The valuation allowance increased (decreased) in 2016, 2017 and 2018 by $2,287,000, $(5,641,000) (net of the decrease of $10,848,000 due to the decrease in federal corporate tax rate to 21% as a result of the Tax Act) and $1,505,000, respectively. Loss before income taxes consists of the following: Year Ended December 31, 2016 2017 2018 U.S. operations $ (5,547,000 ) $ (4,425,000 ) $ (5,066,000 ) Foreign operations (823,000 ) 244,000 (746,000 ) $ (6,370,000 ) $ (4,181,000 ) $ (5,812,000 ) The difference between income taxes at the statutory federal income tax rate and income taxes reported in the Consolidated Statements of Operations is attributable to the following: Year Ended December 31, 2016 2017 2018 Income tax benefit at the federal statutory rate $ (2,166,000 ) $ (1,316,000 ) $ (1,221,000 ) State and local income taxes, net of effect on federal taxes (848,000 ) (441,000 ) (800,000 ) Increase (decrease) in valuation allowance 2,287,000 (8,509,000 ) 1,861,000 Incentive stock options/forfeitures 624,000 (11,000 ) (22,000 ) Change in Federal tax rate 10,848,000 - Research and development tax credits - (1,390,000 ) - Permanent differences and other 103,000 508,000 182,000 $ - $ (311,000 ) $ - The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2017 and 2018 are presented below: December 31, 2017 2018 Deferred tax assets: Net operating loss carryforwards $ 21,007,000 $ 22,988,000 Deferred revenue 4,629,000 4,717,000 Stock-based compensation 839,000 732,000 Federal research and development tax credits 1,058,000 1,058,000 Intangibles, amortization 973,000 938,000 Inventories 175,000 149,000 Acquisition related expenses 321,000 318,000 Bad debt reserve 30,000 62,000 Other deductible temporary differences 556,000 487,000 Total gross deferred tax assets 29,588,000 31,449,000 Less: Valuation allowance (26,112,000 ) (27,568,000 ) 3,476,000 3,881,000 Deferred tax liabilities: Deferred expenses (2,978,000 ) (3,153,000 ) Goodwill amortization (298,000 ) (395,000 ) Fixed assets, depreciation (200,000 ) (333,000 ) (3,476,000 ) (3,881,000 ) Net deferred tax assets $ - $ - |
Wholly Owned Foreign Subsidiari
Wholly Owned Foreign Subsidiaries | 12 Months Ended |
Dec. 31, 2018 | |
Wholly Owned Foreign Subsidiaries [Abstract] | |
Wholly Owned Foreign Subsidiaries | NOTE 18 - WHOLLY OWNED FOREIGN SUBSIDIARIES The financial statements of the Company’s wholly owned German subsidiary, IDS GmbH, and United Kingdom subsidiary, IDS Ltd, are consolidated with the financial statements of I.D. Systems, Inc. The net revenue and net loss for IDS GmbH included in the Consolidated Statement of Operations are as follows: Year Ended December 31, 2016 2017 2018 Net revenue $ 1,852,000 $ 1,365,000 $ 1,270,000 Net income (loss) 211,000 103,000 (406,000 ) Total assets of IDS GmbH were $1,086,000 and $1,430,000 as of December 31, 2017 and 2018, respectively. IDS GmbH operates in a local currency environment using the Euro as its functional currency. The net revenue and net loss for IDS Ltd included in the consolidated statement of operations are as follows: Year Ended December 31, 2016 2017 2018 Net revenue $ 296,000 $ 577,000 $ 186,000 Net (loss) income (612,000 ) 141,000 (340,000 ) Total assets of IDS Ltd were $1,187,000 and $1,054,000 as of December 31, 2017 and 2018, respectively. IDS Ltd operates in a local currency environment using the British Pound as its functional currency. |
Reduction in Work Force
Reduction in Work Force | 12 Months Ended |
Dec. 31, 2018 | |
Reduction In Work Force | |
Reduction in Work Force | NOTE 19 - REDUCTION IN WORK FORCE The Company entered into a Separation and General Release Agreement (the “Ellis Separation Agreement”) with Norman L. Ellis, its former Chief Operating Officer, on December 16, 2016 and Amendment No. 2 to Severance Agreement (together with the Ellis Separation Agreement, the “Separation Agreements”) with Kenneth Ehrman, its former Chief Executive Officer, on December 20, 2016. Under the terms of the Separation Agreements, the Company recognized severance costs of $637,000 which are included in selling, general and administrative expenses in the consolidated statement of operations for 2016. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 20 - COMMITMENTS AND CONTINGENCIES Except for normal operating leases, the Company is not currently subject to any material commitments. [A] Contingencies: On June 12, 2017, ACF FinCo I LP (“ACF”) filed a lawsuit against the Company in the District Court for Dallas County, Texas. The complaint alleges that ACF is the successor-in-interest to McDonald Technologies International Inc. (“MTI”), one of our former suppliers, and alleges one cause of action for breach of a May 2015 Master Services Agreement pursuant to which the Company purchased certain products manufactured and services rendered by MTI. The complaint seeks approximately $2.0 million in damages for amounts allegedly due by the Company under this agreement, plus interest and attorney’s fees. On July 7, 2017, the Company filed its answer denying any liability to ACF and asserting various defenses to ACF’s claims against the Company. This lawsuit went to trial the week of November 13, 2018 and was settled for approximately $750,000 on November 15, 2018 and is included selling, general and administrative expenses in the Consolidated Statement of Operations. [B] Severance agreements: As of December 31, 2018, the Company has entered into severance agreements with three executive officers. The severance agreements for Ned Mavrommatis, the Company’s Chief Financial Officer, and Michael L. Ehrman, the Company’s former Chief Technology Officer, are substantially identical in form and provide each of Messrs. Mavrommatis and Ehrman with certain severance and change in control benefits upon the occurrence of a “Trigger Event,” which will have occurred if the Company terminates the executive without cause or the executive resigns for good reason within six months following a change in control event. The severance agreement for Chris Wolfe, the Company’s Chief Executive Officer, provides Mr. Wolfe with certain severance and change in control benefits upon the occurrence of a “Trigger Event,” which will have occurred if the Company terminates Mr. Wolfe without cause, or upon the occurrence of a “Change in Control Trigger Event,” which will have occurred if the Company terminates Mr. Wolfe without cause or Mr. Wolfe resigns for good reason, each within six months following a change in control event. As a condition to the Company’s obligations under the severance agreements, each executive has executed and delivered to the Company a restrictive covenants agreement. Under the terms of the severance agreements with Messrs. Mavrommatis and Ehrman, each executive is entitled to the following: (i) a cash payment at the rate of the executive’s annual base salary as in effect immediately prior to the Trigger Event for a period of 12 months, (ii) a waiver of any remaining portion of the executive’s healthcare continuation payments under COBRA for the twelve-month severance period, provided that the executive timely elects COBRA coverage and continues to make contributions for such coverage equal to his contribution amount in effect immediately preceding the date of his termination of employment, (iii) partial accelerated vesting of the executive’s previously granted stock options and restricted stock awards, and (iv) as applicable, an award of “Performance Shares” under the Restricted Stock Unit Award Agreement previously entered into between the Company and the executive. Under the terms of the severance agreement with Mr. Wolfe, Mr. Wolfe is entitled to the following: (i) a cash payment either (A) in the event of a Trigger Event, at the rate of his annual base salary, or (B) in the event of a Change in Control Trigger Event, at twice the rate of his annual base salary, in each case as in effect immediately prior to the Trigger Event or Change in Control Trigger Event, as the case may be, for a period of 12 months, (ii) a waiver of any remaining portion of Mr. Wolfe’s healthcare continuation payments under COBRA for the twelve-month severance period, provided that he timely elects COBRA coverage and continues to make contributions for such coverage equal to his contribution amount in effect immediately preceding the date of his termination of employment, (iii) partial accelerated vesting of Mr. Wolfe’s previous granted stock options and restricted stock awards, and (iv) in the event of a Change in Control Trigger Event, a pro-rata portion of any bonus that would have been payable to Mr. Wolfe with respect to the year of termination based on the achievement of predetermined Company objectives used to determine the Company’s performance. The Company entered into the Ellis Separation Agreement on December 16, 2016 and amended the Ehrman Severance Agreement on December 20, 2016. Under the terms of the Separation Agreements, the Company recognized severance costs of $637,000 which are included in selling, general and administrative expenses. In addition, a pro-rata portion of Mr. Ehrman’s unvested stock options and restricted stock were partially vested based on the number of months elapsed since the date of grant as compared to the scheduled vesting date. Due to the modification of the terms of the stock option and restricted stock agreements, the Company recognized a $(26,000) reduction of stock-based compensation expense in the fourth quarter of 2016 which is included in the stock option and restricted stock stock-based compensation expense. [C] Operating leases: The office leases for the Company’s executive offices in Woodcliff Lake, New Jersey and sales and administrative office in Plano, Texas, which expire in February 2021 also provide for escalations relating to increases in real estate taxes and certain operating expenses. The Company leases office and warehouse space in Tampa, Florida which will expire in February 2026 and provides for escalations relating to increases in real estate taxes. In addition, the Company leases sales and administrative offices in Milton Keynes, United Kingdom and Dusseldorf, Germany. The Company’s operating leases provide for minimum annual rental payments as follows: Year Ending December 31, 2019 $ 1,103,000 2020 1,125,000 2021 386,000 2022 242,000 2023 247,000 Thereafter 552,000 $ 3,655,000 Minimum rent payments under operating leases are recognized on a straight-line basis over the term of the lease including any periods of free rent. Rental expense for operating leases was approximately $1,057,000, $1,021,000 and $1,061,000 for the years ended December 31, 2016, 2017 and 2018, respectively. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 21 - SUBSEQUENT EVENTS [A] CarrierWeb Acquisition On January 30, 2019, the Company completed the acquisition (the “CarrierWeb Acquisition”) of substantially all of the assets of telematics provider CarrierWeb, L.L.C. (“CarrierWeb”), an Atlanta-based provider of real-time in-cab mobile communications technology, electronic logging devices (ELDs), two-way refrigerated command and control, and trailer tracking. Aggregate consideration for the CarrierWeb Acquisition was $3,500,000, consisting of (i) a closing cash payment of $2,800,000, less (ii) a credit bid by the Company in the amount of the aggregate principal amount plus accrued and unpaid interest outstanding under a $650,000 debtor-in-possession loan made by the Company to CarrierWeb, plus (iii) an additional $700,000, if CarrierWeb Services Ltd., an affiliate of CarrierWeb, is restored to the Register of Companies in Ireland on or before May 1, 2019, payable upon such restoration. The CarrierWeb 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. The assets the Company acquired in the CarrierWeb Acquisition will be integrated into the Company’s logistics visibility solutions and products. In connection with the transaction, the Company offered employment to all of the former employees of CarrierWeb. The CarrierWeb Acquisition allows the Company to offer a full complement of highly-integrated logistics technology solutions to its current customers and prospects, and immediately adds more than 70 customers and 9,000 subscriber units. The acquisition will be accounted for using the purchase method of accounting in accordance with ASC 805, Business Combinations [B] Merger Transactions: On March 13, 2019, the Company entered into an Agreement and Plan of Merger (the “Pointer Merger Agreement”), with PowerFleet, Inc., a wholly-owned subsidiary of the Company (“Parent”), Pointer Telocation Ltd. (“Pointer”), Powerfleet Israel Holding Company Ltd., a wholly-owned subsidiary of Parent (“Pointer Holdco”), and Powerfleet Israel Acquisition Company Ltd., a wholly-owned subsidiary of Pointer Holdco (“Pointer Merger Sub”), pursuant to which Pointer Merger Sub will merge with and into Pointer, with Pointer surviving as a direct, wholly-owned subsidiary of Pointer Holdco (the “Pointer Merger”) in exchange for consideration consisting of cash and shares of common stock of Parent. Also on March 13, 2019, and in connection with the Pointer Merger Agreement, the Company entered into an Investment and Transaction Agreement (the “Investment Agreement”) with Parent, PowerFleet US Acquisition Inc., a wholly-owned subsidiary of Parent (“IDS Merger Sub”), and ABRY Senior Equity V, L.P. and ABRY Senior Equity Co-Investment Fund V, L.P., pursuant to which the Company will reorganize into a new holding company structure by merging IDS Merger Sub with and into the Company, with the Company surviving as a wholly-owned subsidiary of Parent (the “IDS Merger”), and pursuant to which Parent will issue and sell in a private placement shares of Parent’s newly created Series A Convertible Preferred Stock, to finance a portion of the cash consideration payable in the Pointer Merger. As a result of the transactions contemplated by the Pointer Merger Agreement and the Investment Agreement (the “Merger Transactions”), the Company and Pointer will each become wholly-owned subsidiaries of Parent. The Merger Transactions have been unanimously approved by the boards of directors of both companies, are subject to customary closing conditions, including approval by our stockholders and Pointer’s shareholders. The Merger Transactions are expected to close in the summer of 2019. Additionally, on March 13, 2019, the Company entered into a commitment letter with Bank Hapoalim B.M. providing for two five-year senior secured term loan facilities to Pointer Holdco in an aggregate principal amount of $30 million and a five-year revolving credit facility to Pointer in an aggregate principal amount of $10 million. The term loan facilities will be used to finance a portion of the cash consideration payable in the Pointer Merger and the revolving credit facility will be used by Pointer for general working capital purposes, or, at Pointer’s discretion, to finance a portion of the cash consideration payable in the Pointer Merger. The term loan facilities and the revolving credit facility are subject to customary closing conditions. 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 pending Merger Transactions are expected to provide the Company with operational synergies and access to a broader base of customers. The pending Merger Transactions will be accounted for as a business combination and the Company has been identified as the accounting acquirer. For the year ended December 31, 2018, the Company incurred acquisition-related expenses of approximately $705,000 which are included in selling, general and administrative expenses. |
Quarterly Selected Financial Da
Quarterly Selected Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Data [Abstract] | |
Quarterly Selected Financial Data (Unaudited) | NOTE 22 - QUARTERLY SELECTED FINANCIAL DATA (UNAUDITED) The following tables contain selected quarterly financial data for each quarter for the years ended December 31, 2018 and 2017. We believe the following information reflects all normal recurring adjustments necessary for a fair presentation of the information for the periods presented. The operating results for any period are not necessarily indicative of results for any future periods. Year Ended December 31, 2018 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Revenues: Products $ 9,898,000 $ 10,784,000 $ 9,044,000 $ 7,171,000 Services 3,481,000 4,025,000 4,341,000 4,320,000 13,379,000 14,809,000 13,385,000 11,491,000 Cost of revenues: Cost of products 5,842,000 7,408,000 5,287,000 4,101,000 Cost of services 1,075,000 986,000 1,301,000 1,266,000 6,917,000 8,394,000 6,588,000 5,367,000 Gross Profit 6,462,000 6,415,000 6,797,000 6,124,000 Selling, general and administrative expenses 5,696,000 5,993,000 5,921,000 7,061,000 Research and development expenses 1,743,000 1,542,000 1,696,000 1,882,000 Other income, net (13,000 ) 4,000 (77,000 ) 10,000 Net loss $ (990,000 ) $ (1,116,000 ) $ (897,000 ) $ (2,809,000 ) Net loss per share - basic and diluted $ (0.06 ) $ (0.07 ) $ (0.05 ) $ (0.16 ) Year Ended December 31, 2017 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Revenues: Products $ 4,334,000 $ 6,375,000 $ 6,490,000 $ 6,353,000 Services 3,665,000 4,331,000 4,596,000 4,814,000 7,999,000 10,706,000 11,086,000 11,167,000 Cost of revenues: Cost of products 2,815,000 3,427,000 3,475,000 3,736,000 Cost of services 1,034,000 1,738,000 1,984,000 1,822,000 3,849,000 5,165,000 5,459,000 5,558,000 Gross Profit 4,150,000 5,541,000 5,627,000 5,609,000 Selling, general and administrative expenses 4,653,000 5,046,000 5,063,000 5,718,000 Research and development expenses 1,367,000 997,000 1,108,000 1,066,000 Other income, net (16,000 ) (22,000 ) (42,000 ) (10,000 ) Net loss before income tax benefit (1,886,000 ) (524,000 ) (586,000 ) (1,185,000 ) Income tax benefit - sale of NJ R&D tax credits - - - 311,000 Net loss $ (1,886,000 ) $ (524,000 ) $ (586,000 ) $ (874,000 ) Net loss per share - basic and diluted $ (0.14 ) $ (0.04 ) $ (0.04 ) $ (0.05 ) |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | [A] Principles of consolidation: The consolidated financial statements include the accounts of I.D. Systems, Inc. and its wholly owned subsidiaries, Asset Intelligence, LLC (“AI”), I.D. Systems GmbH (“IDS GmbH”), I.D. Systems (UK) Ltd (formerly Didbox Ltd.) (“IDS Ltd”) and Keytroller (which, as noted above, are collectively referred to herein as the “Company”). All material intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | [B] Use of estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“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 stock-based compensation arrangements, measurements of fair value of assets acquired and liabilities assumed and acquisition-related contingent consideration, realization of deferred tax assets, the impairment of tangible and intangible assets, inventory reserves, allowance for doubtful accounts, warranty reserves and deferred revenue and costs. Actual results could differ from those estimates. |
Cash and Cash Equivalents | [C] 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 generally exceed FDIC limits. Restricted cash at December 31, 2017 and 2018 consists of cash held in escrow for purchases from a vendor. |
Investments | [D] Investments: The Company’s investments include debt securities, U.S. Treasury Notes, government and state agency bonds, corporate bonds and commercial paper, which are classified as either available for sale, held to maturity or trading, depending on management’s investment intentions relating to these securities. All of the Company’s investments are currently classified as available for sale. Available for sale securities are measured at fair value based on quoted market values of the securities, with the unrealized gain and (losses) reported as comprehensive income or (loss). The Company has classified as short-term those securities that mature within one year and all other securities are classified as long-term. Realized gains and losses from the sale of available for sale securities are determined on a specific-identification basis. Net realized gains and losses from the sale of investment securities available for sale are included in “other income” in the consolidated statement of operations. Dividend and interest income are recognized when earned. |
Accounts Receivable | [E] Accounts receivable: Accounts receivable are recorded at the invoiced amount and do not bear interest. Amounts collected on trade accounts receivable are included in net cash provided by operating activities in the consolidated statements of cash flows. The Company maintains reserves against its accounts receivable for potential losses. Allowances for uncollectible accounts are estimated based on the Company’s periodic review of accounts receivable balances. In establishing the required allowance, management considers our customers’ financial condition, the amount of receivables in dispute, and the current receivables aging and current payment patterns. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. Accounts receivable are net of an allowance for doubtful accounts in the amount of $87,000 and $67,000 in 2017 and 2018, respectively. The Company does not have any off-balance sheet credit exposure related to its customers. |
Financing Receivables | [F] Financing receivables: Financing receivables consists of sales-type lease receivables from the sale of the Company’s products and services. 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 future minimum lease payments. Amounts collected on sales-type leases are included in net cash provided by operating activities in the consolidated statements of cash flows. Interest income is recognized monthly over the lease term using the effective-interest method. The allowance for uncollectable minimum lease payments represents the Company’s best estimate of the amount of credit losses in the Company’s existing notes and sales-type lease receivable. The allowance is determined on an individual lease basis if it is probable that the Company will not collect all principal and interest contractually due. The Company considers our customers’ financial condition and historical payment patterns in determining the customers’ probability of default. The impairment is measured based on the present value of expected future cash flows discounted at the note’s effective interest rate. There were no impairment losses recognized for the years ended December 31, 2016, 2017 and 2018. The Company does not accrue interest when a lease is considered impaired. When the ultimate collectability of the principal balance of the impaired lease is in doubt, all cash receipts on impaired lease are applied to reduce the principal amount of such lease until the principal has been recovered and are recognized as interest income thereafter. Impairment losses are charged against the allowance and increases in the allowance are charged to bad debt expense. Leases are written off against the allowance when all possible means of collection have been exhausted and the potential for recovery is considered remote. The Company resumes accrual of interest when it is probable that the Company will collect the remaining principal and interest of an impaired lease. Leases become past due based on how recently payments have been received. |
Revenue Recognition | [G] Revenue recognition: The Company’s revenue is derived from: (i) sales of our wireless asset management systems and spare parts; (ii) remotely hosted SaaS agreements and post-contract maintenance and support agreements; (iii) services, which includes training and technical support; and (iv) periodically, leasing arrangements. 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. Revenue is recognized when obligations under the terms of a contract with our customer are satisfied; generally this occurs with the transfer of control of our wireless asset management systems, spare parts, or services. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services. Sales, value add, and other taxes we collect concurrent 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 our base warranties continue to be recognized as expense when the products are sold (see Note 13). We recognize revenue for remotely hosted SaaS agreements and post-contract maintenance and support agreements beyond our standard warranties over the life of the contract. Our industrial truck and connected vehicle wireless asset management systems consist of on-asset hardware, communication infrastructure, SaaS, and hosting infrastructure. The Company’s system is typically implemented by the customer or a third party and, as a result, revenue related to the on-asset hardware is recognized when control of the hardware is transferred to the customer, which usually is upon delivery of the system and contractual obligations have been satisfied. Revenue related to the SaaS and hosting infrastructure performance obligation is recognized over time as access to the SaaS and hosting infrastructure is provided to the customer. In some instances, we are also responsible for providing 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. Our logistics visibility solutions systems (formerly “transportation asset management”) consist of on-asset hardware, communications and SaaS services. The logistics visibility solutions system does not have stand-alone value to the customer separate from the SaaS services provided and, therefore, we consider 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 are deferred, recorded, and classified as a current and long-term liability and a current and long-term asset, respectively. 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 customer service contracts typically range from one to five years. Spare parts sales are reflected in product revenues and recognized on the date of customer receipt of the part. In addition, the service revenue for our logistics visibility monitoring equipment relates to charges for monthly messaging usage and value-added features charges. The usage fee is a monthly fixed charge based on the expected utilization according to the rate plan chosen by the customer. Service revenue generally commences upon equipment installation and customer acceptance and is recognized over the period such services are provided. The Company also enters into remotely hosted SaaS agreements and post-contract maintenance and support agreements for its wireless asset management systems. Revenue is recognized ratably over the service periods and the cost of providing these services is expensed as incurred. Deferred revenue also includes prepayment of extended maintenance, hosting and support contracts. The Company also derives revenue under leasing arrangements. Such arrangements provide for monthly payments covering the 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. Our contracts with customers may include multiple performance obligations. For such arrangements, we allocate revenue to each performance obligation based on its relative standalone selling price. We generally determine 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 three to five years because the asset relates to the services transferred to the customer during the contract term of three to five years. Sales taxes collected from customers and remitted to governmental authorities are accounted for on a net basis and therefore are excluded from revenues in the Consolidated Statements of Operations. |
Deferred Costs | [H] Deferred costs: Deferred product costs consist of logistics visibility solutions equipment costs deferred in accordance with our revenue recognition policy. The Company will continue to evaluate the realizability of the carrying amount of the deferred contract costs on a quarterly basis. To the extent the carrying value of the deferred contract costs exceed the contract revenue, an impairment loss will be recognized. |
Inventory | [I] 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 valuation reserves are established in order to report inventories at the lower of cost or net realizable value in the consolidated balance sheet. The determination of inventory valuation reserves requires management to make estimates and judgments on the future salability of inventories. Valuation reserves for obsolete and slow-moving inventory are estimated based on assumptions of future sales forecasts, product life cycle expectations, the impact of new product introductions, production requirements, and specific identification of items, such as product discontinuance or engineering/material changes and by comparing the inventory levels to historical usage rates. |
Fixed Assets and Depreciation | [J] Fixed assets and depreciation: Fixed assets are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the assets, which range from three to ten years. Leasehold improvements are amortized using the straight-line method over the terms of the respective leases, or their estimated useful lives, whichever is shorter. For website development costs, the Company capitalizes costs incurred during the application development stage. Costs related to preliminary project activities and post-implementation activities are expensed as incurred. Internal-use software is amortized on a straight-line basis over its estimated useful life, generally three years. |
Long-lived Assets | [K] Long-lived assets: Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the assets to the future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets and would be charged to earnings. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. |
Business Combinations | [L] Business Combinations: Goodwill represents costs in excess of fair values assigned to the underlying net assets of acquired businesses. Goodwill and intangible assets deemed to have indefinite lives are not amortized. Intangible assets other than goodwill are amortized over their useful lives unless the lives are determined to be indefinite. Intangible assets are carried at cost, less accumulated amortization. Intangible assets consist of trademarks and trade name, patents, customer relationships and other intangible assets. The Company tests goodwill and other intangible assets annually, or when a triggering event occurs between annual impairment tests, to determine if impairment exists and if the use of indefinite lives is currently applicable. For purposes of the goodwill impairment test, the Company’s product lines are aggregated within one reporting unit. For the years ended December 31, 2016, 2017 and 2018, the Company has not incurred an impairment charge. The Company re-measures the fair value of the contingent consideration at each reporting period and any change in the fair value from either the passage of time or events occurring after the acquisition date, is recorded in earnings in the accompanying consolidated statement of operations. Actual results could differ from such estimates in future periods based on the re-measurement of the fair value. |
Product Warranties | [M] Product warranties: The Company typically provides a one-year warranty on its products. Estimated future warranty costs are accrued in the period that the related revenue is recognized. These estimates are derived from historical data and trends of product reliability and costs of repairing and replacing defective products. |
Research and Development | [N] Research and development: Research and development costs are charged to expense as incurred and consists primarily of salaries and related expenses, supplies and contractor costs. Research and development costs were $5,235,000, $4,538,000 and $6,863,000 in 2016, 2017 and 2018, respectively. |
Patent Costs | [O] Patent costs: Costs incurred in connection with acquiring patent rights are charged to expense as incurred. |
Benefit Plan | [P] Benefit plan: The Company maintains a retirement plan under Section 401(k) of the Internal Revenue Code, which covers all eligible employees. All employees with U.S. source income are eligible to participate in the plan immediately upon employment. The Company did not make any contributions to the plan during the years ended December 31, 2016, 2017 and 2018. |
Rent Expense | [Q] Rent expense: Expense related to the Company’s facilities leases is recorded on a straight-line basis over the respective lease terms. The difference between rent expense incurred and the amounts required to be paid in accordance with the lease term is recorded as deferred rent and is amortized over the lease term. |
Stock-based Compensation | [R] Stock-based compensation: The Company accounts for stock-based employee compensation for all share-based payments, including grants of stock options and restricted stock, as an operating expense based on their fair values on grant date. The Company recorded stock-based compensation expense of $1,658,000, $2,437,000 and $2,163,000 for the years ended December 31, 2016, 2017 and 2018, respectively. The Company estimates the fair value of share-based option awards on the grant date using an option pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service period in the Company’s consolidated statement of operations. The Company estimates forfeitures at the time of grant in order to estimate the amount of share-based awards that will ultimately vest. The estimate is based on the Company’s historical rates of forfeitures. Estimated forfeitures are revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. |
Income Taxes | [S] Income taxes: The Company uses the asset and liability method of accounting for deferred income taxes. Deferred income taxes are measured by applying enacted statutory rates to net operating loss carryforwards and to the differences between the financial reporting and tax bases of assets and liabilities. Deferred tax assets are reduced, if necessary, by a valuation allowance if it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company recognizes uncertainty in income taxes in the financial statements using a recognition threshold and measurement attribute of a tax position taken or expected to be taken in a tax return. The Company applies the “more-likely-than-not” recognition threshold to all tax positions, commencing at the adoption date of the applicable accounting guidance, which resulted in no unrecognized tax benefits as of such date. Additionally, there have been no unrecognized tax benefits subsequent to adoption. The Company has opted to classify interest and penalties that would accrue according to the provisions of relevant tax law as selling, general, and administrative expenses, in the consolidated statement of operations. For the years ended December 31, 2016, 2017 and 2018, there was no such interest or penalty. The Company files federal income tax returns and separate income tax returns in various states. For federal and certain states, the 2015 through 2018 tax years remain open for examination by the tax authorities under the normal three-year statute of limitations. For certain other states, the 2014 through 2018 tax years remain open for examination by the tax authorities under a four-year statute of limitations. |
Fair Value of Financial Instruments | [T] Fair value of financial instruments: Cash and cash equivalents and investments in securities 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 receivable, accounts payable and other liabilities approximates their fair values due to the short period to maturity of these instruments. |
Advertising and Marketing Expense | [U] Advertising and marketing expense: Advertising and marketing costs are expensed as incurred. Advertising and marketing expense for the years ended December 31, 2016, 2017 and 2018 amounted to $510,000, $538,000 and $996,000, respectively. |
Commitments and Contingencies | [V] Commitments and contingencies: Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. |
Recently Issued Accounting Pronouncements | [W] Recently issued accounting pronouncements: In August 2018, the Securities and Exchange Commission (the “SEC”) issued a final rule that amends certain of the SEC’s disclosure requirements, including requirements relating to disclosures about changes in stockholders’ equity. For Quarterly Reports on Form 10-Q, the final rule extends to interim periods the annual requirement in Rule 3-04 of Regulation S-X, to disclose (1) changes in stockholders’ equity and (2) the amount of dividends per share for each class of shares (as opposed to common stock only, as previously required). Pursuant to the final rule, registrants must now analyze changes in stockholders’ equity, in the form of a reconciliation, for “the current and comparative year-to-date [interim] periods, with subtotals for each interim period,” i.e., a reconciliation covering each period for which an income statement is presented. Rule 3-04 of Regulation S-X permits the disclosure of changes in stockholders’ equity (including dividend-per-share amounts) to be made either in a separate financial statement or in the notes to the financial statements. The final rule is effective for all filings made on or after November 5, 2018. SEC staff has indicated it would not object if a registrant’s first presentation of the changes in shareholders’ equity is included in its Form 10-Q for the quarter that begins after the effective date of the amendments. Therefore, the Company expects to conform to this rule in its Quarterly Report on Form 10-Q for the quarter ending March 31, 2019. Inasmuch as the Company has not paid dividends, the Company believes that the final rule will not have a material effect on its consolidated financial statements and disclosures. In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-15, “Intangibles-Goodwill and Other-Internal-Use Software (Topic 350): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract”, which align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). ASU 2018-15 is effective for the Company beginning in the first fiscal quarter of 2022, with early adoption permitted. The Company is currently evaluating the impact of this ASU on the consolidated financial statements. In June 2018, the FASB issued ASU 2018-07, “Compensation - Stock Compensation (Topic 718): Improvements to Non-employee Share-Based Accounting”. This guidance aligns the accounting for share-based payment transactions with non-employees to accounting for share-based payment transactions with employees. Companies are required to record a cumulative-effect adjustment (net of tax) to retained earnings as of the beginning of the fiscal year of the adoption. Upon transition, non-employee awards are required to be measured at fair value as of the adoption date. This standard will be effective for fiscal years beginning December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company does not expect the adoption of this standard to have a material impact on the consolidated financial statements. In February 2018, the FASB issued ASU 2018-02, “Income Statement - Reporting Comprehensive Income (Topic 220)”. The objective of the ASU is to allow a reclassification from accumulated comprehensive income (loss) to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act and will improve the usefulness of information reported to financial statement users. This ASU is effective for interim and annual reporting periods beginning after December 15, 2018, and early adoption is permitted. The Company does not expect the adoption of this standard to have a material impact on the consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, “Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting”. The FASB issued the update to provide clarity and reduce the cost and complexity when applying the guidance in Topic 718. The amendments in this update provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. This ASU was effective for public companies for fiscal years beginning after December 15, 2017, including interim periods. Early adoption is permitted. The adoption of this guidance did not have a material impact on the Company’s financial results. In January 2017, the FASB issued ASU 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 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 guidance is effective beginning fiscal year 2021. Early adoption is permitted. The Company is currently evaluating the impact of this ASU on the consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash,” which requires the inclusion of restricted cash with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This ASU was effective for public business entities for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The adoption of this guidance did not have a material impact on the Company’s financial results. In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments,” which provides clarification on how companies present and classify certain cash receipts and cash payments in the statement of cash flows. This ASU was effective for fiscal periods beginning after December 15, 2017 and interim periods within those fiscal years. Early adoption is permitted. If an entity early adopts the amendments in an interim period, any adjustments must be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. The adoption of this guidance did not have a material impact on the Company’s financial results. 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, 2019. The Company is currently evaluating the impact of this ASU on the consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases” (Topic 842), in order to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet for those leases classified as operating leases under previous GAAP. ASU 2016-02 requires that a lessee should recognize a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term on the balance sheet. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018 (including interim periods within those periods) using a modified retrospective approach and early adoption is permitted. The Company will adopt ASU 2016-02 in the first quarter of 2019. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. If an entity chooses the second option, the transition requirements for existing leases also apply to leases entered into between the date of initial application and the effective date. The entity must also recast its comparative period financial statements and provide the disclosures required by the new standard for the comparative periods. The Company will adopt the new standard on January 1, 2019 and use the effective date of initial application. Consequently, financial information will not be updated and the disclosures required under the new standard will not be provided for dates and periods before January 1, 2019. The new standard provides a number of optional practical expedients in transition. The Company expects to elect the “package of expedients”, which permits the Company not to reassess under the new standard the Company’s prior conclusions about lease identification and initial direct costs. The Company does not expect to elect the use-of hindsight or the practical expedient pertaining to land easements, the latter not being applicable to the Company. The new standard also provides practical expedients for the Company’s ongoing accounting. The Company currently expects to elect the short-term lease recognition exemption for all leases that qualify. This means, for those leases that qualify, the Company will not recognize ROU assets or lease liabilities, and this includes not recognizing ROU assets or lease liabilities for existing short-term leases of those assets in transition. The Company also expects to elect the practical expedient to not separate lease and non-lease components for all of its leases other than leases of real estate. The Company expects the most significant change will be related to the recognition of right-of-use assets and lease liabilities on the Company’s balance sheet for real estate operating leases. The Company is currently in the process of evaluating the impact of ASU 2016-02 on the Company’s outstanding leases and expects that as a result of the adoption of this guidance that it will record right-of-use assets and lease liabilities totaling approximately $2.8 million to $3.2 million primarily related to its real estate operating leases. The Company also expects that the adoption of this guidance will result in additional lease-related disclosures in the footnotes to its consolidated financial statements. In May 2014, the FASB issued ASU 2014-09 (Topic 606) “Revenue from Contracts with Customers.” Topic 606 supersedes the revenue recognition requirements in Topic 605 “Revenue Recognition” (Topic 605) and requires entities to recognize revenue when control of the promised goods or services is transferred to customers at an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. On January 1, 2018, we adopted Topic 606 and all related amendments (“new revenue standard”) to those contracts which were not completed as of January 1, 2018 using the modified retrospective method. The comparative information was not been restated and continues to be reported under the accounting standards in effect for those periods. There was no adjustment to the opening balance of retained earnings due to the cumulative effect of initially applying the new revenue standard determined to be immaterial. |
Reclassifications | [X] Reclassifications: Certain amounts included in selling, general and administrative expenses in the prior years’ consolidated financial statements have been reclassified to research and development expenses to conform to the current period presentation for comparative purposes. In addition, the reconciliation of cash and restricted cash in the consolidated statement of cash flows has been included for the prior years. |
Investments and Fair Value Me_2
Investments and Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Fair Value of Available for Sale Securities | The following table summarizes the estimated fair value of investment securities designated as available for sale, classified by the contractual maturity date of the security as of December 31, 2018: Fair Value Due within one year $ 394,000 Due one year through three years 1,501,000 Due after three years 2,630,000 $ 4,525,000 |
Schedule of Available for Sale Securities Reconciliation | The cost, gross unrealized gains (losses) and fair value of available for sale securities by major security type at December 31, 2018 and 2017 were as follows: Unrealized Unrealized Fair December 31, 2018 Cost Gain Loss Value Investments - short term U.S. Treasury Notes $ 302,000 $ 1,000 - $ 303,000 Corporate bonds and commercial paper 91,000 - - 91,000 Total investments - short term 393,000 1,000 394,000 Investments - long term U.S. Treasury Notes 1,569,000 - (2,000 ) 1,567,000 Government agency bonds 1,548,000 - (23,000 ) 1,525,000 Corporate bonds 1,062,000 - (23,000 ) 1,039,000 Total investments - long term 4,179,000 - (48,000 ) 4,131,000 Total investments - available for sale $ 4,572,000 $ 1,000 $ (48,000 ) $ 4,525,000 Unrealized Unrealized Fair December 31, 2017 Cost Gain Loss Value Investments - short term U.S. Treasury Notes $ 1,066,000 - (1,000 ) $ 1,065,000 Corporate bonds and commercial paper 136,000 - - 136,000 Total investments - short term 1,202,000 - (1,000 ) 1,201,000 Investments - long term U.S. Treasury Notes 3,367,000 - (37,000 ) 3,330,000 Government agency bonds 4,279,000 - (40,000 ) 4,239,000 Corporate bonds 2,744,000 - (35,000 ) 2,709,000 Total investments - long term 10,390,000 - (112,000 ) 10,278,000 Total investments - available for sale $ 11,592,000 $ - $ (113,000 ) $ 11,479,000 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenue Disaggregated by Revenue Sources | The following table presents our revenues disaggregated by revenue source for the years ended December 31, 2016, 2017 and 2018. Year Ended December 31, 2016 2017 2018 Industrial truck management Products $ 14,299,000 $ 17,481,000 $ 22,653,000 Services 5,543,000 6,224,000 7,348,000 19,842,000 23,705,000 30,001,000 Year Ended December 31, 2016 2017 2018 Connected vehicles Products $ - $ 43,000 $ 8,491,000 Services 1,142,000 2,930,000 1,086,000 1,142,000 2,973,000 9,577,000 Year Ended December 31, 2016 2017 2018 Logistics visibility solutions Products $ 7,067,000 $ 6,028,000 $ 5,753,000 Services 8,771,000 8,252,000 7,733,000 15,838,000 14,280,000 13,486,000 |
Schedule of Deferred Revenue | The balances of contract assets, and contract liabilities from contracts with customers as of December 31, 2017 and 2018 are as follows: December 31, 2017 2018 Current assets: Deferred sales commissions to employees $ - $ 585,000 Deferred costs $ 8,598,000 $ 9,069,000 Current liabilities: Deferred revenue -other (1) $ 2,589,000 $ 305,000 Deferred maintenance and SaaS revenue (1) 3,296,000 4,607,000 Deferred logistics visibility solutions product revenue (1) 11,564,000 12,176,000 17,449,000 17,088,000 Less: Current portion 9,711,000 7,902,000 Deferred revenue - less current portion $ 7,738,000 $ 9,186,000 (1) We record deferred revenues when cash payments are received or due in advance of our performance. For the years ended December 31, 2017 and 2018, the Company recognized revenue of 10,751,000 and $11,813,000, respectively, that was included in the deferred revenue balance at the beginning of each reporting period. The Company expects to recognize as revenue before year 2023, when it transfers those goods and services and, therefore, satisfies its performance obligation to the customers. We do not separately account for activation fees since no good or service is transferred to the customer. Therefore, the activation fee is included in the transaction price and allocated to the performance obligations in the contract and deferred/amortized over the life of the contract. |
Schedule of Revenue Expected to be Recognized | The following is the amount of the transaction price that has not yet been recognized as revenue as of December 31, 2018, which is expected to be recognized by year 2023: 2019 2020 2021 2022 2023 Total Revenue expected to be recognized December 31, $ 1,887,000 $ 1,887,000 $ 1,887,000 $ 1,887,000 $ 801,000 $ 8,349,000 |
Financing Receivables (Tables)
Financing Receivables (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Scheduled Maturities of Sales-type Lease Minimum Lease Payments | Scheduled maturities of minimum lease payments outstanding as of December 31, 2018 are as follows: Year ending December 31: 2019 $ 1,036,000 2020 741,000 2021 333,000 2022 128,000 2023 52,000 2,290,000 Less: Current portion 1,036,000 Total $ 1,254,000 |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Schedule of Changes in Contingent Consideration | The changes in contingent consideration through December 31, 2018 is as follows: Balance as of December 31, 2017 $ 2,777,000 Change in contingent consideration 169,000 Payment of contingent consideration via issuance of shares (2,000,000 ) Settlement of contingent consideration (946,000 ) Balance as of December 31, 2018 $ - |
Schedule of Purchase Price Allocation On Net Assets Acquired | The following table summarizes the purchase price allocation based on estimated fair values of the net assets acquired at the acquisition date: Accounts receivable $ 835,000 Inventory 1,066,000 Other assets 42,000 Intangibles 5,086,000 Goodwill 5,481,000 Less: Current liabilities assumed (454,000 ) Net assets acquired $ 12,056,000 |
Schedule of Revenue and Operating Income | The following revenue and operating income of Keytroller are included in the Company’s consolidated results of operations for the year ended December 31, 2017: Year Ended December 31, 2017 Revenues $ 3,468,000 Operating income $ 708,000 |
Schedule of Combined Pro Forma Revenue and Earnings | This summary is not necessarily indicative of what the results of operations would have been had the Keytroller Acquisition occurred during such period, nor does it purport to represent results of operations for any future periods. Year Ended Year Ended December 31, 2016 December 31, 2017 Historical Pro Forma Combined Historical Pro Forma Combined (Unaudited) (Unaudited) Revenues $ 36,822,000 $ 43,446,000 $ 40,958,000 $ 44,796,000 Operating loss (6,368,000 ) (5,505,000 ) (4,091,000 ) (3,617,000 ) Net loss per share - basic and diluted $ (0.49 ) $ (0.35 ) $ (0.26 ) $ (0.24 ) |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consist of the following: December 31, 2017 2018 Components $ 1,083,000 $ 2,218,000 Finished goods, net 3,503,000 2,431,000 $ 4,586,000 $ 4,649,000 |
Fixed Assets (Tables)
Fixed Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Fixed Assets | Fixed assets are stated at cost, less accumulated depreciation and amortization, and are summarized as follows: December 31, 2017 2018 Equipment $ 1,054,000 $ 1,114,000 Computer software and website development 5,610,000 5,633,000 Computer hardware 2,560,000 2,664,000 Furniture and fixtures 416,000 466,000 Automobiles 60,000 60,000 Leasehold improvements 181,000 181,000 9,881,000 10,118,000 Accumulated depreciation and amortization (7,134,000 ) (7,969,000 ) $ 2,747,000 $ 2,149,000 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | The following table summarizes identifiable intangible assets of the Company as of December 31, 2018 and 2017: December 31, 2018 Useful Lives (In Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortized: Customer relationships 10 $ 3,123,000 (442,000 ) 2,681,000 Trademark and tradename 10 - 15 1,367,000 (178,000 ) 1,189,000 Patents 11 1,489,000 (1,218,000 ) 271,000 Favorable contract interest 5 388,000 (137,000 ) 251,000 Covenant not to compete 4 208,000 (60,000 ) 148,000 6,575,000 (2,035,000 ) 4,540,000 Unamortized: Customer list 104,000 - 104,000 Trademark and Tradename 61,000 - 61,000 165,000 - 165,000 Total $ 6,740,000 $ (2,035,000 ) $ 4,705,000 December 31, 2017 Useful Lives (In Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortized: Customer relationships 10 $ 3,123,000 (130,000 ) 2,993,000 Trademark and tradename 10 - 15 1,367,000 (52,000 ) 1,315,000 Patents 11 1,489,000 (1,083,000 ) 406,000 Favorable contract interest 5 388,000 (40,000 ) 348,000 Covenant not to compete 4 208,000 (18,000 ) 190,000 6,575,000 (1,323,000 ) 5,252,000 Unamortized: Customer list 104,000 - 104,000 Trademark and Tradename 61,000 - 61,000 165,000 - 165,000 Total $ 6,740,000 $ (1,323,000 ) $ 5,417,000 |
Schedule of Finite-lived Intangible Assets, Future Amortization Expense | Estimated future amortization expense for each of the five succeeding fiscal years for these intangible assets is as follows: Year ending December 31: 2019 712,000 2020 712,000 2021 536,000 2022 462,000 2023 438,000 Thereafter 1,680,000 $ 4,540,000 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Net Loss Per Share Basic and Diluted | December 31, Basic and diluted loss per share 2016 2017 2018 Net loss $ (6,370,000 ) $ (3,870,000 ) $ (5,812,000 ) Weighted-average common shares outstanding - basic and diluted 12,984,000 14,961,000 17,233,000 Net loss per share - basic and diluted $ (0.49 ) $ (0.26 ) $ (0.34 ) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Stock Options Activity | A summary of the status of the Company’s stock options as of December 31, 2016, 2017 and 2018 and changes during the years then ended, is presented below: 2016 2017 2018 Weighted - Weighted - Weighted - Average Average Average Number of Exercise Number of Exercise Number of Exercise Shares Price Shares Price Shares Price Outstanding at beginning of year 1,212,000 $ 6.94 1,243,000 $ 5.08 1,290,000 $ 5.33 Granted 395,000 4.75 350,000 6.00 120,000 6.41 Exercised (20,000 ) 3.44 (271,000 ) 4.72 (169,000 ) 5.73 Forfeited or expired (344,000 ) 11.36 (32,000 ) 8.26 (21,000 ) 5.96 Outstanding at end of year 1,243,000 $ 5.08 1,290,000 $ 5.33 1,220,000 $ 5.37 Exercisable at end of year 822,000 $ 5.07 667,000 $ 5.11 695,000 $ 5.07 |
Summarizes Information About Stock Options Exercisable | The following table summarizes information about stock options at December 31, 2018: Options Outstanding Options Exercisable Weighted - Average Remaining Weighted- Weighted- Exercise Number Contractual Average Number Average Prices ($) Outstanding Life in Years Exercise Price Outstanding Exercise Price 2.06 - 4.87 320,000 4 $ 4.03 240,000 $ 3.85 4.88 - 5.70 235,000 7 5.37 162,000 5.46 5.71 - 5.97 210,000 4 5.81 210,000 5.81 5.98 – 6.90 455,000 8 6.11 83,000 6.00 1,220,000 6 $ 5.37 695,000 $ 5.07 As of December 31, 2018 Weighted Average Remaining Aggregate Intrinsic Value Contractual Life in Years Options outstanding $ 558,000 6 Options exercisable $ 448,000 5 |
Schedule of Fair Value Stock Option Assumptions | 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: December 31, 2016 2017 2018 Expected volatility 43.6 % 42.4 % 42.8 % Expected life of options 4.0 years 4.0 years 4.4 years Risk free interest rate 1.27 % 1.69 % 2.72 % Dividend yield 0 % 0 % 0 % Weighted-average fair value of options granted during the year $ 1.68 $ 2.11 $ 2.46 |
Schedule of Non-vested Restricted Stock Activity | A summary of the non-vested shares for the years ended December 31, 2016, 2017 and 2018 is as follows: Weighted - Average Number of Grant Non-vested Date Shares Fair Value Non-vested at January 1, 2016 575,000 $ 5.79 Granted 271,000 4.80 Vested (272,000 ) 5.34 Forfeited (182,000 ) 5.72 Non-vested at December 31, 2016 392,000 $ 5.45 Granted 240,000 6.26 Vested (194,000 ) 5.42 Forfeited (8,000 ) 5.69 Non-vested at December 31, 2017 430,000 $ 5.91 Granted 434,000 7.02 Vested (266,000 ) 6.07 Forfeited (30,000 ) 6.54 Non-vested at December 31, 2018 568,000 $ 6.65 |
Schedule of Non-vested Performance-based Units Activity | The following table summarizes the activity relating to the Company’s performance shares for the years ended December 31, 2016, 2017 and 2018: Weighted- Number of Average Non-vested Grant Date Shares Fair Value Performance shares, non-vested, at January 1, 2016 - - Granted 295,000 $ 4.07 Vested - - Forfeited (34,000 ) 4.07 Performance shares, non-vested, at December 31, 2016 261,000 4.07 Granted - $ - Vested (100,000 ) 4.07 Forfeited (50,000 ) 4.07 Performance shares, non-vested, at December 31, 2017 111,000 4.07 Granted - $ - Vested (93,000 ) 4.07 Forfeited (18,000 ) 4.07 Performance shares, non-vested, December 31, 2018 - $ - |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | Accounts payable and accrued expenses consist of the following: December 31, 2017 2018 Accounts payable $ 6,233,000 $ 6,644,000 Accrued warranty 535,000 422,000 Accrued severance 100,000 - Accrued compensation 507,000 870,000 Other current liabilities 65,000 91,000 $ 7,440,000 $ 8,027,000 |
Schedule of Product Warranty Liability | The following table summarizes warranty activity during the years ended December 31, 2017 and 2018: Year Ended 2017 2018 Accrued warranty reserve, beginning of year $ 472,000 $ 535,000 Accrual for product warranties issued 253,000 192,000 Product replacements and other warranty expenditures (68,000 ) (182,000 ) Expiration of warranties (122,000 ) (123,000 ) Accrued warranty reserve, end of period $ 535,000 $ 422,000 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The accumulated balances for each classification of other comprehensive loss are as follows: Unrealized Accumulated Foreign gain (losses) other currency on comprehensive items investments income Balance at January 1, 2016 $ (500,000 ) $ - $ (500,000 ) Net current period change 408,000 (11,000 ) 397,000 Balance at December 31, 2016 (92,000 ) $ (11,000 ) (103,000 ) Net current period change (373,000 ) (102,000 ) (475,000 ) Balance at December 31, 2017 (465,000 ) $ (113,000 ) (578,000 ) Net current period change 77,000 66,000 143,000 Balance at December 31, 2018 $ (388,000 ) $ (47,000 ) (435,000 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Loss Before Income Taxes | Loss before income taxes consists of the following: Year Ended December 31, 2016 2017 2018 U.S. operations $ (5,547,000 ) $ (4,425,000 ) $ (5,066,000 ) Foreign operations (823,000 ) 244,000 (746,000 ) $ (6,370,000 ) $ (4,181,000 ) $ (5,812,000 ) |
Schedule of Income Taxes at Statutory Federal Income Tax Rate and Income Taxes | The difference between income taxes at the statutory federal income tax rate and income taxes reported in the Consolidated Statements of Operations is attributable to the following: Year Ended December 31, 2016 2017 2018 Income tax benefit at the federal statutory rate $ (2,166,000 ) $ (1,316,000 ) $ (1,221,000 ) State and local income taxes, net of effect on federal taxes (848,000 ) (441,000 ) (800,000 ) Increase (decrease) in valuation allowance 2,287,000 (8,509,000 ) 1,861,000 Incentive stock options/forfeitures 624,000 (11,000 ) (22,000 ) Change in Federal tax rate 10,848,000 - Research and development tax credits - (1,390,000 ) - Permanent differences and other 103,000 508,000 182,000 $ - $ (311,000 ) $ - |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2017 and 2018 are presented below: December 31, 2017 2018 Deferred tax assets: Net operating loss carryforwards $ 21,007,000 $ 22,988,000 Deferred revenue 4,629,000 4,717,000 Stock-based compensation 839,000 732,000 Federal research and development tax credits 1,058,000 1,058,000 Intangibles, amortization 973,000 938,000 Inventories 175,000 149,000 Acquisition related expenses 321,000 318,000 Bad debt reserve 30,000 62,000 Other deductible temporary differences 556,000 487,000 Total gross deferred tax assets 29,588,000 31,449,000 Less: Valuation allowance (26,112,000 ) (27,568,000 ) 3,476,000 3,881,000 Deferred tax liabilities: Deferred expenses (2,978,000 ) (3,153,000 ) Goodwill amortization (298,000 ) (395,000 ) Fixed assets, depreciation (200,000 ) (333,000 ) (3,476,000 ) (3,881,000 ) Net deferred tax assets $ - $ - |
Wholly Owned Foreign Subsidia_2
Wholly Owned Foreign Subsidiaries (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
I.D. Systems GmbH [Member] | |
Schedule of Financial Statements of Foreign Subsidiary | The net revenue and net loss for IDS GmbH included in the Consolidated Statement of Operations are as follows: Year Ended December 31, 2016 2017 2018 Net revenue $ 1,852,000 $ 1,365,000 $ 1,270,000 Net income (loss) 211,000 103,000 (406,000 ) |
I.D. Systems Ltd [Member] | |
Schedule of Financial Statements of Foreign Subsidiary | The net revenue and net loss for IDS Ltd included in the consolidated statement of operations are as follows: Year Ended December 31, 2016 2017 2018 Net revenue $ 296,000 $ 577,000 $ 186,000 Net (loss) income (612,000 ) 141,000 (340,000 ) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | The Company’s operating leases provide for minimum annual rental payments as follows: Year Ending December 31, 2019 $ 1,103,000 2020 1,125,000 2021 386,000 2022 242,000 2023 247,000 Thereafter 552,000 $ 3,655,000 |
Quarterly Selected Financial _2
Quarterly Selected Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Data [Abstract] | |
Schedule of Quarterly Financial Information | The operating results for any period are not necessarily indicative of results for any future periods. Year Ended December 31, 2018 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Revenues: Products $ 9,898,000 $ 10,784,000 $ 9,044,000 $ 7,171,000 Services 3,481,000 4,025,000 4,341,000 4,320,000 13,379,000 14,809,000 13,385,000 11,491,000 Cost of revenues: Cost of products 5,842,000 7,408,000 5,287,000 4,101,000 Cost of services 1,075,000 986,000 1,301,000 1,266,000 6,917,000 8,394,000 6,588,000 5,367,000 Gross Profit 6,462,000 6,415,000 6,797,000 6,124,000 Selling, general and administrative expenses 5,696,000 5,993,000 5,921,000 7,061,000 Research and development expenses 1,743,000 1,542,000 1,696,000 1,882,000 Other income, net (13,000 ) 4,000 (77,000 ) 10,000 Net loss $ (990,000 ) $ (1,116,000 ) $ (897,000 ) $ (2,809,000 ) Net loss per share - basic and diluted $ (0.06 ) $ (0.07 ) $ (0.05 ) $ (0.16 ) Year Ended December 31, 2017 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Revenues: Products $ 4,334,000 $ 6,375,000 $ 6,490,000 $ 6,353,000 Services 3,665,000 4,331,000 4,596,000 4,814,000 7,999,000 10,706,000 11,086,000 11,167,000 Cost of revenues: Cost of products 2,815,000 3,427,000 3,475,000 3,736,000 Cost of services 1,034,000 1,738,000 1,984,000 1,822,000 3,849,000 5,165,000 5,459,000 5,558,000 Gross Profit 4,150,000 5,541,000 5,627,000 5,609,000 Selling, general and administrative expenses 4,653,000 5,046,000 5,063,000 5,718,000 Research and development expenses 1,367,000 997,000 1,108,000 1,066,000 Other income, net (16,000 ) (22,000 ) (42,000 ) (10,000 ) Net loss before income tax benefit (1,886,000 ) (524,000 ) (586,000 ) (1,185,000 ) Income tax benefit - sale of NJ R&D tax credits - - - 311,000 Net loss $ (1,886,000 ) $ (524,000 ) $ (586,000 ) $ (874,000 ) Net loss per share - basic and diluted $ (0.14 ) $ (0.04 ) $ (0.04 ) $ (0.05 ) |
Description of Business and L_2
Description of Business and Liquidity (Details Narrative) - USD ($) | Jul. 17, 2017 | Dec. 31, 2018 | Dec. 31, 2017 |
Proceeds from public offering | $ 16,065,000 | ||
Cash, cash equivalents and marketable securities | 15,000,000 | ||
Working capital | $ 15,800,000 | ||
Public Offering [Member] | |||
Sale of stock shares issued | 2,608,695 | ||
Sale of stock price per share | $ 5.75 | ||
Shares issued pursuant to exercise of stock options | 391,304 | ||
Number of common stock issued | 2,999,999 | ||
Gross proceeds from public offering | $ 17,300,000 | ||
Proceeds from public offering | $ 16,100,000 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Allowance for doubtful accounts receivable | $ 67,000 | $ 87,000 | $ 67,000 | $ 87,000 | |||||||
Impairment losses | |||||||||||
Research and development costs | 1,882,000 | $ 1,696,000 | $ 1,542,000 | $ 1,743,000 | $ 1,066,000 | $ 1,108,000 | $ 997,000 | $ 1,367,000 | 6,863,000 | 4,538,000 | $ 5,235,000 |
Stock-based compensation expense | 2,163,000 | 2,437,000 | 1,658,000 | ||||||||
Interest or penalty | |||||||||||
Advertising and marketing expense | 996,000 | $ 538,000 | $ 510,000 | ||||||||
Right-of-use assets | 2,800,000 | 2,800,000 | |||||||||
Lease liabilities | 2,800,000 | 2,800,000 | |||||||||
ASU 2016-02 [Member] | |||||||||||
Right-of-use assets | 3,200,000 | 3,200,000 | |||||||||
Lease liabilities | $ 3,200,000 | $ 3,200,000 | |||||||||
Internal-use Software [Member] | |||||||||||
Fixed assets estimated useful life | 3 years | ||||||||||
Minimum [Member] | |||||||||||
Deferred revenue and cost recognition for the service contract life | 1 year | ||||||||||
Customer service contract life, term | 1 year | ||||||||||
Fixed assets estimated useful life | 3 years | ||||||||||
Maximum [Member] | |||||||||||
Deferred revenue and cost recognition for the service contract life | 5 years | ||||||||||
Customer service contract life, term | 5 years | ||||||||||
Fixed assets estimated useful life | 10 years |
Investments and Fair Value Me_3
Investments and Fair Value Measurements (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |||
Unrealized gain (loss) on investments | $ (98,000) | $ (103,000) | $ (5,000) |
Investments and Fair Value Me_4
Investments and Fair Value Measurements - Schedule of Fair Value of Available for Sale Securities (Details) | Dec. 31, 2018USD ($) |
Investments, Debt and Equity Securities [Abstract] | |
Due within one year | $ 394,000 |
Due one year through three years | 1,501,000 |
Due after three years | 2,630,000 |
Estimated fair value | $ 4,525,000 |
Investments and Fair Value Me_5
Investments and Fair Value Measurements - Schedule of Available for Sale Securities Reconciliation (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Securities, Available-for-sale [Line Items] | ||
Cost | $ 4,572,000 | $ 11,592,000 |
Unrealized Gain | 1,000 | |
Unrealized Loss | (48,000) | (113,000) |
Fair Value | 4,525,000 | 11,479,000 |
Short-term Investments [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost | 393,000 | 1,202,000 |
Unrealized Gain | 1,000 | |
Unrealized Loss | (1,000) | |
Fair Value | 394,000 | 1,201,000 |
Short-term Investments [Member] | U.S. Treasury Notes [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost | 302,000 | 1,066,000 |
Unrealized Gain | 1,000 | |
Unrealized Loss | (1,000) | |
Fair Value | 303,000 | 1,065,000 |
Short-term Investments [Member] | Corporate Bonds and Commercial Paper [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost | 91,000 | 136,000 |
Unrealized Gain | ||
Unrealized Loss | ||
Fair Value | 91,000 | 136,000 |
Long-term Investments [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost | 4,179,000 | 10,390,000 |
Unrealized Gain | ||
Unrealized Loss | (48,000) | (112,000) |
Fair Value | 4,131,000 | 10,278,000 |
Long-term Investments [Member] | U.S. Treasury Notes [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost | 1,569,000 | 3,367,000 |
Unrealized Gain | ||
Unrealized Loss | (2,000) | (37,000) |
Fair Value | 1,567,000 | 3,330,000 |
Long-term Investments [Member] | Corporate Bonds and Commercial Paper [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost | 1,062,000 | 2,744,000 |
Unrealized Gain | ||
Unrealized Loss | (23,000) | (35,000) |
Fair Value | 1,039,000 | 2,709,000 |
Long-term Investments [Member] | Government Agency Bonds [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost | 1,548,000 | 4,279,000 |
Unrealized Gain | ||
Unrealized Loss | (23,000) | (40,000) |
Fair Value | $ 1,525,000 | $ 4,239,000 |
Revenue Recognition (Details Na
Revenue Recognition (Details Narrative) | Dec. 03, 2018USD ($)Unit | Dec. 31, 2018USD ($)Unit | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Net revenue | $ 53,064,000 | $ 40,958,000 | $ 36,822,000 | |
Products [Member] | ||||
Net revenue | $ 36,897,000 | 23,552,000 | 21,366,000 | |
Avis Budget Car Rental LLC [Member] | ||||
Recognized milestone revenue | $ 255,000 | |||
Number of cellular-enabled rental fleet car management system | Unit | 50,000 | |||
Period of intsallation of equipment | 60 months | |||
Equipment for consideration | $ 21,270,000 | |||
Upfront payment | 3,290,000 | |||
Initial payment | 2,000,000 | |||
Payment for development cost | 902,000 | |||
Payment for production readiness development | 388,000 | |||
Avis Budget Car Rental LLC [Member] | Statement of Work #4 [Member] | ||||
Number of cellular-enabled rental fleet car management system | Unit | 75,000 | |||
Period of intsallation of equipment | 60 months | |||
Equipment for consideration | $ 33,000,000 | |||
Maximum period of additional instalation and maintainance service period | 48 months | |||
Net revenue | ||||
Avis Budget Car Rental LLC [Member] | Statement of Work #4 [Member] | Development Project [Member] | ||||
Net revenue | 2,470,000 | 2,470,000 | ||
Avis Budget Car Rental LLC [Member] | Statement of Work #4 [Member] | Products [Member] | ||||
Net revenue | $ 8,491,000 | $ 0 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Revenue Disaggregated by Revenue Sources (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Total Revenue | $ 53,064,000 | $ 40,958,000 | $ 36,822,000 |
Products [Member] | |||
Total Revenue | 36,897,000 | 23,552,000 | 21,366,000 |
Services [Member] | |||
Total Revenue | 16,167,000 | 17,406,000 | 15,456,000 |
Industrial Truck Management [Member] | |||
Total Revenue | 30,001,000 | 23,705,000 | 19,842,000 |
Industrial Truck Management [Member] | Products [Member] | |||
Total Revenue | 22,653,000 | 17,481,000 | 14,299,000 |
Industrial Truck Management [Member] | Services [Member] | |||
Total Revenue | 7,348,000 | 6,224,000 | 5,543,000 |
Connected Vehicles [Member] | |||
Total Revenue | 9,577,000 | 2,973,000 | 1,142,000 |
Connected Vehicles [Member] | Products [Member] | |||
Total Revenue | 8,491,000 | 43,000 | |
Connected Vehicles [Member] | Services [Member] | |||
Total Revenue | 1,086,000 | 2,930,000 | 1,142,000 |
Logistics Visibility Solutions [Member] | |||
Total Revenue | 13,486,000 | 14,280,000 | 15,838,000 |
Logistics Visibility Solutions [Member] | Products [Member] | |||
Total Revenue | 5,753,000 | 6,028,000 | 7,067,000 |
Logistics Visibility Solutions [Member] | Services [Member] | |||
Total Revenue | $ 7,733,000 | $ 8,252,000 | $ 8,771,000 |
Revenue Recognition - Schedul_2
Revenue Recognition - Schedule of Deferred Revenue (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 | |
Deferred costs | $ 3,660,000 | $ 4,296,000 | |
Deferred revenue | 17,088,000 | 17,449,000 | |
Less: Current portion | 7,902,000 | 9,711,000 | |
Deferred revenue - less current portion | 9,186,000 | 7,738,000 | |
Sales Commissions to Employees [Member] | |||
Deferred costs | 585,000 | ||
Deferred Revenue - Other [Member] | |||
Deferred revenue | [1] | 305,000 | 2,589,000 |
Deferred Maintenance and SaaS Revenue [Member] | |||
Deferred revenue | [1] | 4,607,000 | 3,296,000 |
Deferred Logistics Visibility Solutions Product Revenue [Member] | |||
Deferred revenue | [1] | $ 12,176,000 | $ 11,564,000 |
[1] | We record deferred revenues when cash payments are received or due in advance of our performance. For the years ended December 31, 2017 and 2018, the Company recognized revenue of 10,751,000 and $11,813,000, respectively, that was included in the deferred revenue balance at the beginning of each reporting period. The Company expects to recognize as revenue before year 2023, when it transfers those goods and services and, therefore, satisfies its performance obligation to the customers. We do not separately account for activation fees since no good or service is transferred to the customer. Therefore, the activation fee is included in the transaction price and allocated to the performance obligations in the contract and deferred/amortized over the life of the contract. |
Revenue Recognition - Schedul_3
Revenue Recognition - Schedule of Deferred Revenue (Details) (Parenthetical) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue recognized | $ 11,813,000 | $ 10,751,000 |
Minimum [Member] | ||
Amortization of asset, term | 3 years | 3 years |
Maximum [Member] | ||
Amortization of asset, term | 5 years | 5 years |
Revenue Recognition - Schedul_4
Revenue Recognition - Schedule of Revenue Expected to be Recognized (Details) | Dec. 31, 2018USD ($) |
Revenue expected to be recognized | $ 8,349,000 |
2019 [Member] | |
Revenue expected to be recognized | 1,887,000 |
2020 [Member] | |
Revenue expected to be recognized | 1,887,000 |
2021 [Member] | |
Revenue expected to be recognized | 1,887,000 |
2022 [Member] | |
Revenue expected to be recognized | 1,887,000 |
2023 [Member] | |
Revenue expected to be recognized | $ 801,000 |
Financing Receivables (Details
Financing Receivables (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Financing Receivable, Recorded Investment [Line Items] | ||
Unearned interest income on sales type leases | $ 114,000 | $ 164,000 |
Discount rate of unearned income | 4.00% | 4.00% |
Minimum [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment lease receivable term | 3 years | |
Maximum [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment lease receivable term | 5 years |
Financing Receivables - Schedul
Financing Receivables - Scheduled Maturities of Sales-type Lease Minimum Lease Payments (Details) | Dec. 31, 2018USD ($) |
Receivables [Abstract] | |
2019 | $ 1,036,000 |
2020 | 741,000 |
2021 | 333,000 |
2022 | 128,000 |
2023 | 52,000 |
Capital Leases, Future Minimum Payments | 2,290,000 |
Less: Current portion | 1,036,000 |
Sales-type Lease Receivable - Less current portion | $ 1,254,000 |
Acquisition (Details Narrative)
Acquisition (Details Narrative) - USD ($) | Aug. 01, 2018 | Jul. 31, 2017 | Sep. 14, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 |
Number of common stock issued, value | $ 2,000,000 | |||||
Post-closing working capital adjustment | $ 275,000 | |||||
Acquisition related expenses | $ 301,000 | |||||
Contingent consideration | $ 2,683,000 | |||||
Business combination contingent consideration weighted average discount rate | 14.60% | |||||
Asset Purchase Agreement [Member] | ||||||
Number of common stock issued | 147,951 | 296,000 | ||||
Asset Purchase Agreement [Member] | Keytroller Acquisition [Member] | ||||||
Cash | $ 7,098,000 | |||||
Number of common stock issued | 295,902 | |||||
Number of common stock issued, value | $ 2,000,000 | |||||
Potential earn-out payments | 3,000,000 | |||||
Fair value of potential earn-out payments | $ 2,683,000 |
Acquisition - Schedule of Chang
Acquisition - Schedule of Changes in Contingent Consideration (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Business Combinations [Abstract] | |||
Contingent consideration, beginning | $ 2,777,000 | ||
Change in contingent consideration | 169,000 | $ 94,000 | |
Payment of contingent consideration via issuance of shares | (2,000,000) | ||
Settlement of contingent consideration | 946,000 | ||
Contingent consideration, ending | $ 2,777,000 |
Acquisition - Schedule of Purch
Acquisition - Schedule of Purchase Price Allocation On Net Assets Acquired (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Goodwill | $ 7,318,000 | $ 7,318,000 |
Keytroller Acquisition [Member] | ||
Accounts receivable | 835,000 | |
Inventory | 1,066,000 | |
Other assets | 42,000 | |
Intangibles | 5,086,000 | |
Goodwill | 5,481,000 | |
Less: Current liabilities assumed | (454,000) | |
Net assets acquired | $ 12,056,000 |
Acquisition - Schedule of Reven
Acquisition - Schedule of Revenue and Operating Income (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net revenue | $ 53,064,000 | $ 40,958,000 | $ 36,822,000 | ||||||||
Operating income | $ 2,809,000 | $ 897,000 | $ (1,116,000) | $ (990,000) | $ (874,000) | $ (586,000) | $ (524,000) | $ (1,886,000) | $ (5,812,000) | (3,870,000) | $ (6,370,000) |
Keytroller LLC [Member] | |||||||||||
Net revenue | 3,468,000 | ||||||||||
Operating income | $ 708,000 |
Acquisition - Schedule of Combi
Acquisition - Schedule of Combined Pro Forma Revenue and Earnings (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Historical [Member] | ||
Revenues | $ 40,958,000 | $ 36,822,000 |
Operating loss | $ (4,091,000) | $ (6,368,000) |
Net loss per share - basic and diluted | $ (0.26) | $ (0.49) |
Pro Forma Combined [Member] | ||
Revenues | $ 44,796,000 | $ 43,446,000 |
Operating loss | $ (3,617,000) | $ (5,505,000) |
Net loss per share - basic and diluted | $ (0.24) | $ (0.35) |
Inventories (Details Narrative)
Inventories (Details Narrative) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Inventory valuation reserves | $ 119,000 | $ 266,000 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Components | $ 2,218,000 | $ 1,083,000 |
Finished goods, net | 2,431,000 | 3,503,000 |
Inventory, Net | $ 4,649,000 | $ 4,586,000 |
Fixed Assets (Details Narrative
Fixed Assets (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization expense | $ 849,000 | $ 757,000 | $ 549,000 |
Amortization expense | 528,000 | 410,000 | $ 165,000 |
Software development and website development projects costs | 5,000 | 100,000 | |
Computer Software and Web Application Development [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Computer equipment not yet placed in service | $ 0 | $ 13,000 |
Fixed Assets - Schedule of Fixe
Fixed Assets - Schedule of Fixed Assets (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 10,118,000 | $ 9,881,000 |
Accumulated depreciation and amortization | (7,679,000) | (7,134,000) |
Property, plant and equipment, net | 2,149,000 | 2,747,000 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,114,000 | 1,054,000 |
Computer Software and Web Application Development [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 5,633,000 | 5,610,000 |
Computer Hardware [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 2,664,000 | 2,560,000 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 466,000 | 416,000 |
Automobiles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 60,000 | 60,000 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 181,000 | $ 181,000 |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 712,000 | $ 375,000 | $ 136,000 |
Intangible Assets and Goodwil_3
Intangible Assets and Goodwill - Schedule of Intangible Assets (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross Carrying Amount | $ 6,575,000 | $ 6,575,000 |
Finite-Lived Intangible Assets, Accumulated Amortization | (2,035,000) | (1,323,000) |
Finite-Lived Intangible Assets, Net Carrying Amount | 4,540,000 | 5,252,000 |
Indefinite-Lived Intangible Assets (Excluding Goodwill), Gross | 165,000 | 165,000 |
Indefinite-Lived Intangible Assets (Excluding Goodwill) | 165,000 | 165,000 |
Intangible Assets Gross | 6,740,000 | 6,740,000 |
Intangible Assets, Accumulated Amortization | (2,305,000) | (1,323,000) |
Total | 4,705,000 | 5,417,000 |
Trademark and Tradename [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross Carrying Amount | 1,367,000 | 1,367,000 |
Finite-Lived Intangible Assets, Accumulated Amortization | (178,000) | (52,000) |
Finite-Lived Intangible Assets, Net Carrying Amount | 1,189,000 | 1,315,000 |
Indefinite-Lived Intangible Assets (Excluding Goodwill), Gross | 61,000 | 61,000 |
Indefinite-Lived Intangible Assets (Excluding Goodwill) | $ 61,000 | $ 61,000 |
Trademark and Tradename [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Lives (In Years) | 10 years | 10 years |
Trademark and Tradename [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Lives (In Years) | 15 years | 15 years |
Customer List [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-Lived Intangible Assets (Excluding Goodwill), Gross | $ 104,000 | $ 104,000 |
Indefinite-Lived Intangible Assets (Excluding Goodwill) | $ 104,000 | $ 104,000 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Lives (In Years) | 10 years | 10 years |
Finite-Lived Intangible Assets, Gross Carrying Amount | $ 3,123,000 | $ 3,123,000 |
Finite-Lived Intangible Assets, Accumulated Amortization | (442,000) | (130,000) |
Finite-Lived Intangible Assets, Net Carrying Amount | $ 2,681,000 | $ 2,993,000 |
Patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Lives (In Years) | 11 years | 11 years |
Finite-Lived Intangible Assets, Gross Carrying Amount | $ 1,489,000 | $ 1,489,000 |
Finite-Lived Intangible Assets, Accumulated Amortization | (1,218,000) | (1,083,000) |
Finite-Lived Intangible Assets, Net Carrying Amount | $ 271,000 | $ 406,000 |
Favorable Contract Interest [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Lives (In Years) | 5 years | 5 years |
Finite-Lived Intangible Assets, Gross Carrying Amount | $ 388,000 | $ 388,000 |
Finite-Lived Intangible Assets, Accumulated Amortization | (137,000) | (40,000) |
Finite-Lived Intangible Assets, Net Carrying Amount | $ 251,000 | $ 348,000 |
Covenant Not to Compete [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Lives (In Years) | 4 years | 4 years |
Finite-Lived Intangible Assets, Gross Carrying Amount | $ 208,000 | $ 208,000 |
Finite-Lived Intangible Assets, Accumulated Amortization | (60,000) | (18,000) |
Finite-Lived Intangible Assets, Net Carrying Amount | $ 148,000 | $ 190,000 |
Intangible Assets and Goodwil_4
Intangible Assets and Goodwill - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2019 | $ 712,000 | |
2020 | 712,000 | |
2021 | 536,000 | |
2022 | 462,000 | |
2023 | 438,000 | |
Thereafter | 1,680,000 | |
Finite-Lived Intangible Assets, Net, Total | $ 4,540,000 | $ 5,252,000 |
Net Loss Per Share of Common St
Net Loss Per Share of Common Stock (Details Narrative) - shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |||
Antidilutive securities excluded from computation of earnings per share, amount | 1,788,000 | 1,831,000 | 1,896,000 |
Net Loss Per Share of Common _2
Net Loss Per Share of Common Stock - Schedule of Net Loss Per Share Basic and Diluted (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |||||||||||
Net loss | $ 2,809,000 | $ 897,000 | $ (1,116,000) | $ (990,000) | $ (874,000) | $ (586,000) | $ (524,000) | $ (1,886,000) | $ (5,812,000) | $ (3,870,000) | $ (6,370,000) |
Weighted-average common shares outstanding - basic and diluted | 17,233,000 | 14,961,000 | 12,984,000 | ||||||||
Basic and diluted net loss per share | $ (0.16) | $ (0.05) | $ (0.07) | $ (0.06) | $ (0.05) | $ (0.04) | $ (0.04) | $ (0.14) | $ (0.34) | $ (0.26) | $ (0.49) |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Jan. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Allocated share-based compensation expense | $ 397,000 | $ 411,000 | $ 270,000 | ||
Share-based compensation, fair value of options vested | 413,000 | 291,000 | 280,000 | ||
Share-based compensation, intrinsic value of options exercised | 162,000 | 375,000 | 33,000 | ||
Share-based compensation, nonvested awards, not yet recognized | $ 843,000 | ||||
Share-based compensation, nonvested awards, not yet recognized, period for recognition | 2 years 5 months 5 days | ||||
Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Allocated share-based compensation expense | $ 1,803,000 | $ 1,682,000 | $ 908,000 | ||
Share-based compensation, nonvested awards, not yet recognized | $ 2,615,000 | ||||
Share-based compensation, nonvested awards, not yet recognized, period for recognition | 2 years 7 months 6 days | ||||
Share-based compensation, non-vested shares, granted | 434,000 | 240,000 | 271,000 | ||
Performance Shares [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Allocated share-based compensation expense | $ (37,000) | $ 344,000 | $ 480,000 | ||
Share-based compensation, non-vested shares, granted | 295,000 | ||||
Ehrman Severance Agreement [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Allocated share-based compensation expense | $ (26,000) | ||||
Minimum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Option vested term | 5 years | ||||
Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Option vested term | 10 years | ||||
2018 Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation arrangement by share-based payment award, number of shares authorized | 1,500,000 | ||||
Shares available for future issuance | 1,207,000 | ||||
Equity Compensation Plan 2015 [Member] | Performance Shares [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation, non-vested shares, granted | 295,000 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Stock Options Activity (Details) - Employee Stock Option [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options, Outstanding at Beginning of Year | 1,290,000 | 1,243,000 | 1,212,000 |
Options, Granted | 120,000 | 350,000 | 395,000 |
Options, Exercised | (169,000) | (271,000) | (20,000) |
Options, Forfeited or Expired | (21,000) | (32,000) | (344,000) |
Options, Outstanding at End of Year | 1,220,000 | 1,290,000 | 1,243,000 |
Options, Exercisable at End of Year | 695,000 | 667,000 | 822,000 |
Weighted-average Exercise Price, Outstanding at Beginning of Year | $ 5.33 | $ 5.08 | $ 6.94 |
Weighted-average Exercise Price, Granted | 6.41 | 6 | 4.75 |
Weighted-average Exercise Price, Exercised | 5.73 | 4.72 | 3.44 |
Weighted-average Exercise Price, Forfeited or Expired | 5.96 | 8.26 | 11.36 |
Weighted-average Exercise Price, Outstanding at End of Year | 5.37 | 5.33 | 5.08 |
Weighted-average Exercise Price, Exercisable at End of Year | $ 5.07 | $ 5.11 | $ 5.07 |
Stock-based Compensation - Summ
Stock-based Compensation - Summarizes Information About Stock Options Exercisable (Details) | 12 Months Ended |
Dec. 31, 2018USD ($)$ / sharesshares | |
Number of Options Outstanding | shares | 1,220,000 |
Options Outstanding Weighted-Average Remaining Contractual Life in Years | 6 years |
Options Outstanding Weighted-Average Exercise Price | $ 5.37 |
Options Exercisable Number Outstanding | shares | 695,000 |
Options Exercisable Weighted-Average Exercise Price | $ 5.07 |
Aggregate Intrinsic Value Options Outstanding | $ | $ 558,000 |
Aggregate Intrinsic Value Options Exercisable | $ | $ 448,000 |
Weighted-Average Remaining Contractual Term, Options Outstanding at End of Period | 6 years |
Weighted-Average Remaining Contractual Term, Options Exercisable at End of Period | 5 years |
Exercise Price One [Member] | |
Options Outstanding Exercise Prices, Lower Range Limit | $ 2.06 |
Options Outstanding Exercise Prices, Upper Range Limit | $ 4.87 |
Number of Options Outstanding | shares | 320,000 |
Options Outstanding Weighted-Average Remaining Contractual Life in Years | 4 years |
Options Outstanding Weighted-Average Exercise Price | $ 4.03 |
Options Exercisable Number Outstanding | shares | 240,000 |
Options Exercisable Weighted-Average Exercise Price | $ 3.85 |
Exercise Price Two [Member] | |
Options Outstanding Exercise Prices, Lower Range Limit | 4.88 |
Options Outstanding Exercise Prices, Upper Range Limit | $ 5.70 |
Number of Options Outstanding | shares | 235,000 |
Options Outstanding Weighted-Average Remaining Contractual Life in Years | 7 years |
Options Outstanding Weighted-Average Exercise Price | $ 5.37 |
Options Exercisable Number Outstanding | shares | 162,000 |
Options Exercisable Weighted-Average Exercise Price | $ 5.46 |
Exercise Price Three [Member] | |
Options Outstanding Exercise Prices, Lower Range Limit | 5.71 |
Options Outstanding Exercise Prices, Upper Range Limit | $ 5.97 |
Number of Options Outstanding | shares | 210,000 |
Options Outstanding Weighted-Average Remaining Contractual Life in Years | 4 years |
Options Outstanding Weighted-Average Exercise Price | $ 5.81 |
Options Exercisable Number Outstanding | shares | 210,000 |
Options Exercisable Weighted-Average Exercise Price | $ 5.81 |
Exercise Price Four [Member] | |
Options Outstanding Exercise Prices, Lower Range Limit | 5.98 |
Options Outstanding Exercise Prices, Upper Range Limit | $ 6.90 |
Number of Options Outstanding | shares | 455,000 |
Options Outstanding Weighted-Average Remaining Contractual Life in Years | 8 years |
Options Outstanding Weighted-Average Exercise Price | $ 6.11 |
Options Exercisable Number Outstanding | shares | 83,000 |
Options Exercisable Weighted-Average Exercise Price | $ 6 |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of Fair Value Stock Option Assumptions (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Expected volatility | 42.80% | 42.40% | 43.60% |
Expected life of options | 4 years 4 months 24 days | 4 years | 4 years |
Risk free interest rate | 2.72% | 1.69% | 1.27% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Weighted-average fair value of options granted during the year | $ 2.46 | $ 2.11 | $ 1.68 |
Stock-Based Compensation - Sc_3
Stock-Based Compensation - Schedule of Non-vested Restricted Stock Activity (Details) - Restricted Stock [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Number of Non-vested Shares, Beginning of Year | 430,000 | 392,000 | 575,000 |
Number of Non-vested Shares, Granted | 434,000 | 240,000 | 271,000 |
Number of Non-vested Shares, Vested | (266,000) | (194,000) | (272,000) |
Number of Non-vested Shares, Forfeited | (30,000) | (8,000) | (182,000) |
Number of Non-vested Shares, End of Period | 568,000 | 430,000 | 392,000 |
Weighted- Average Grant Date Fair Value, Non-vested, Beginning of Year | $ 5.91 | $ 5.45 | $ 5.79 |
Weighted- Average Grant Date Fair Value, Granted | 7.02 | 6.26 | 4.80 |
Weighted- Average Grant Date Fair Value, Vested | 6.07 | 5.42 | 5.34 |
Weighted- Average Grant Date Fair Value, Forfeited | 6.54 | 5.69 | 5.72 |
Weighted- Average Grant Date Fair Value, Non-vested, End of Period | $ 6.65 | $ 5.91 | $ 5.45 |
Stock-Based Compensation - Sc_4
Stock-Based Compensation - Schedule of Non-vested Performance-based Units Activity (Details) - Performance Shares [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Non-vested Shares, Beginning of Year | 111,000 | 261,000 | |
Number of Non-vested Shares, Granted | 295,000 | ||
Number of Non-vested Shares, Vested | (93,000) | (100,000) | |
Number of Non-vested Shares, Forfeited | (18,000) | (50,000) | (34,000) |
Number of Non-vested Shares, End of Period | 111,000 | 261,000 | |
Weighted- Average Grant Date Fair Value, Non-vested, Beginning of Year | $ 4.07 | $ 4.07 | |
Weighted- Average Grant Date Fair Value, Granted | 4.07 | ||
Weighted- Average Grant Date Fair Value, Vested | 4.07 | 4.07 | |
Weighted- Average Grant Date Fair Value, Forfeited | 4.07 | 4.07 | 4.07 |
Weighted- Average Grant Date Fair Value, Non-vested, End of Period | $ 4.07 | $ 4.07 |
Revolving Credit Facility (Deta
Revolving Credit Facility (Details Narrative) - Revolving Credit Facility [Member] | Dec. 18, 2015USD ($) |
Credit facility maximum borrowing capacity | $ 7,500,000 |
Credit facility, maturity period | Dec. 18, 2017 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Expenses (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2018 | |
Payables and Accruals [Abstract] | ||
Accrued severance | $ 100,000 | |
Product warranty period | 12 months | |
Extended warranty coverage term | 60 months |
Accounts Payable and Accrued _4
Accounts Payable and Accrued Expenses - Schedule of Accounts Payable and Accrued Liabilities (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Payables and Accruals [Abstract] | ||
Accounts payable | $ 6,644,000 | $ 6,233,000 |
Accrued warranty | 422,000 | 535,000 |
Accrued severance | 100,000 | |
Accrued compensation | 870,000 | 507,000 |
Other current liabilities | 91,000 | 65,000 |
Accounts payable and accrued expenses | $ 8,027,000 | $ 7,440,000 |
Accounts Payable and Accrued _5
Accounts Payable and Accrued Expenses - Schedule of Product Warranty Liability (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Payables and Accruals [Abstract] | ||
Accrued warranty reserve, beginning of year | $ 535,000 | $ 472,000 |
Accrual for product warranties issued | 192,000 | 253,000 |
Product replacements and other warranty expenditures | (182,000) | (68,000) |
Expiration of warranties | (123,000) | (122,000) |
Accrued warranty reserve, end of period | $ 422,000 | $ 535,000 |
Concentration of Customers (Det
Concentration of Customers (Details Narrative) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Customer One [Member] | Sales Revenue, Net [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 18.00% | 16.00% | 18.00% |
Customer One [Member] | Accounts Receivables [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 14.00% | 12.00% | |
Customer One [Member] | Finance Receivables [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 19.00% | 14.00% | |
Customer Two [Member] | Sales Revenue, Net [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 10.00% | ||
Customer Two [Member] | Accounts Receivables [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 11.00% | 11.00% | |
Customer Two [Member] | Finance Receivables [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 13.00% |
Stockholders' Equity (Details N
Stockholders' Equity (Details Narrative) - USD ($) | Jul. 17, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Nov. 03, 2010 |
Equity, Class of Treasury Stock [Line Items] | ||||
Proceeds from public offering | $ 16,065,000 | |||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | ||
Preferred stock, par value | $ 0.01 | $ 0.01 | ||
Preferred stock, shares issued | ||||
Preferred stock, shares outstanding | ||||
Share Repurchase Program [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Stock repurchase program, authorized amount | $ 3,000,000 | |||
Treasury stock, shares | 310,000 | |||
Treasury stock, value | $ 1,340,000 | |||
Treasury stock acquired, average cost per share | $ 4.33 | |||
Public Offering [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Sale of stock shares issued | 2,608,695 | |||
Sale of stock price per share | $ 5.75 | |||
Shares issued pursuant to exercise of stock options | 391,304 | |||
Number of common stock issued | 2,999,999 | |||
Gross proceeds from public offering | $ 17,300,000 | |||
Proceeds from public offering | $ 16,100,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Other comprehensive gain (loss) foreign currency translation adjustment | $ 77,000 | $ (373,000) | $ 408,000 |
Foreign currency transaction gains (losses) | $ (214,000) | $ 456,000 | $ (437,000) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Schedule of Accumulated Other Comprehensive Loss (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Foreign currency items, Balance at Beginning | $ (465,000) | $ (92,000) | $ (500,000) |
Foreign currency items, Net current period change | 77,000 | (373,000) | 408,000 |
Foreign currency items, Balance at End | (388,000) | (465,000) | (92,000) |
Unrealized gain (losses) on investments, Balance at Beginning | (113,000) | (11,000) | |
Unrealized gain (losses) on investments, Net current period change | 66,000 | (102,000) | (11,000) |
Unrealized gain (losses) on investments, Balance at End | (47,000) | (113,000) | (11,000) |
Accumulated other comprehensive income, Balance at Beginning | (578,000) | (103,000) | (500,000) |
Accumulated other comprehensive income, Net current period change | 143,000 | (475,000) | 397,000 |
Accumulated other comprehensive income, Balance at End | $ (435,000) | $ (578,000) | $ (103,000) |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Sale approved | $ 332,000 | ||
Sale approved percentage | 6.20% | ||
Proceeds from sale of tax benefits | $ 311,000 | ||
Net deferred tax assets | 27,568,000 | $ 26,112,000 | |
Valuation allowance, deferred tax asset, increase (decrease), amount | $ 31,449,000 | $ 29,588,000 | |
Valuation allowance increased (decreased) after federal corporate tax | 1,505,000 | (5,641,000) | 2,287,000 |
New Jersey [Member] | |||
Operating loss carryforwards | $ 40,104,000 | ||
Operating loss carryforwards, expiration year | 2038 | ||
Foreign Tax Authority [Member] | |||
Operating loss carryforwards | $ 84,702,000 | ||
Deferred tax assets, operating loss carryforwards, state and local | 65,359,000 | ||
Deferred tax assets, operating loss carryforwards, foreign | $ 3,452,000 | ||
Federal Jurisdiction [Member] | |||
Operating loss carryforwards, expiration year | 2021 through 2037 | ||
State and Local Jurisdiction [Member] | |||
Operating loss carryforwards, expiration year | 2019 through 2038 | ||
Tax Cuts and Jobs Act [Member] | |||
Valuation allowance, deferred tax asset, increase (decrease), amount | $ 10,848,000 | ||
Decrease in federal corporate tax rate | 21.00% |
Income Taxes - Schedule of Loss
Income Taxes - Schedule of Loss Before Income Taxes (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||||||
U.S. operations | $ (5,066,000) | $ (4,425,000) | $ (5,547,000) | ||||
Foreign operations | (746,000) | 244,000 | (823,000) | ||||
Net loss before income taxes | $ (1,185,000) | $ (586,000) | $ (524,000) | $ (1,886,000) | $ (5,812,000) | $ (4,181,000) | $ (6,370,000) |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Taxes at Statutory Federal Income Tax Rate and Income Taxes (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||||||
Income tax benefit at the federal statutory rate | $ (1,221,000) | $ (1,316,000) | $ (2,166,000) | ||||
State and local income taxes, net of effect on federal taxes | (800,000) | (441,000) | (848,000) | ||||
Increase (decrease) in valuation allowance | 1,505,000 | (8,509,000) | 2,287,000 | ||||
Incentive stock options/forfeitures | (22,000) | (11,000) | 624,000 | ||||
Change in Federal tax rate | 10,848,000 | ||||||
Research and development tax credits | (1,390,000) | ||||||
Permanent differences and other | 538,000 | 508,000 | 103,000 | ||||
Income Tax Expense (Benefit) | $ (311,000) | $ (311,000) |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Income Tax Disclosure [Abstract] | ||
Net operating loss carryforwards | $ 22,988,000 | $ 21,007,000 |
Deferred revenue | 4,717,000 | 4,629,000 |
Stock-based compensation | 732,000 | 839,000 |
Federal research and development tax credits | 1,058,000 | 1,058,000 |
Intangibles, amortization | 938,000 | 973,000 |
Inventories | 149,000 | 175,000 |
Acquisition related expenses | 318,000 | 321,000 |
Bad debt reserve | 62,000 | 30,000 |
Other deductible temporary differences | 487,000 | 556,000 |
Total gross deferred tax assets | 31,449,000 | 29,588,000 |
Less: Valuation allowance | (27,568,000) | (26,112,000) |
Deferred Tax Assets, Net of Valuation Allowance | 3,881,000 | 3,476,000 |
Deferred expenses | (3,153,000) | (2,978,000) |
Goodwill amortization | (395,000) | (298,000) |
Fixed assets, depreciation | (333,000) | (200,000) |
Deferred Tax Liabilities, Net, Current | (3,881,000) | (3,476,000) |
Net deferred tax assets |
Wholly Owned Foreign Subsidia_3
Wholly Owned Foreign Subsidiaries (Details Narrative) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Foreign Subsidiaries Financial Information Disclosure [Line Items] | ||
Total assets | $ 57,803,000 | $ 60,932,000 |
I.D. Systems GmbH [Member] | ||
Foreign Subsidiaries Financial Information Disclosure [Line Items] | ||
Total assets | 1,430,000 | 1,086,000 |
I.D. Systems Ltd [Member] | ||
Foreign Subsidiaries Financial Information Disclosure [Line Items] | ||
Total assets | $ 1,054,000 | $ 1,187,000 |
Wholly Owned Foreign Subsidia_4
Wholly Owned Foreign Subsidiaries - Schedule of Financial Statements of Foreign Subsidiary (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Foreign Subsidiaries Financial Information Disclosure [Line Items] | |||||||||||
Net revenue | $ 53,064,000 | $ 40,958,000 | $ 36,822,000 | ||||||||
Net income (loss) | $ 2,809,000 | $ 897,000 | $ (1,116,000) | $ (990,000) | $ (874,000) | $ (586,000) | $ (524,000) | $ (1,886,000) | (5,812,000) | (3,870,000) | (6,370,000) |
I.D. Systems GmbH [Member] | |||||||||||
Foreign Subsidiaries Financial Information Disclosure [Line Items] | |||||||||||
Net revenue | 1,270,000 | 1,365,000 | 1,852,000 | ||||||||
Net income (loss) | (406,000) | 103,000 | 211,000 | ||||||||
I.D. Systems Ltd [Member] | |||||||||||
Foreign Subsidiaries Financial Information Disclosure [Line Items] | |||||||||||
Net revenue | 186,000 | 577,000 | 296,000 | ||||||||
Net income (loss) | $ (340,000) | $ 141,000 | $ (612,000) |
Reduction in Work Force (Detail
Reduction in Work Force (Details Narrative) | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Selling, General and Administrative Expenses [Member] | |
Severance costs | $ 637,000 |
Commitments and Contingencies_2
Commitments and Contingencies (Details Narrative) | Nov. 15, 2018USD ($) | Jun. 12, 2017USD ($) | Dec. 16, 2016USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2018USD ($)Unit | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Other Commitments [Line Items] | |||||||
Number of executive officers | Unit | 3 | ||||||
Allocated share-based compensation expense | $ 397,000 | $ 411,000 | $ 270,000 | ||||
Operating leases, rent expense | $ 1,061,000 | $ 1,021,000 | 1,057,000 | ||||
Texas [Member] | |||||||
Other Commitments [Line Items] | |||||||
Operating lease expire date | Feb. 28, 2021 | ||||||
Florida [Member] | |||||||
Other Commitments [Line Items] | |||||||
Operating lease expire date | Feb. 28, 2026 | ||||||
Selling, General and Administrative Expenses [Member] | |||||||
Other Commitments [Line Items] | |||||||
Severance costs | $ 637,000 | ||||||
Master Services Agreement [Member] | ACF FinCo I LP [Member] | |||||||
Other Commitments [Line Items] | |||||||
Loss contingency, damages sought value | $ 2,000,000 | ||||||
Master Services Agreement [Member] | ACF FinCo I LP [Member] | Selling, General and Administrative Expenses [Member] | |||||||
Other Commitments [Line Items] | |||||||
Litigation settlement, amount | $ 750,000 | ||||||
Ehrman Severance Agreement [Member] | |||||||
Other Commitments [Line Items] | |||||||
Severance costs | $ 637,000 | ||||||
Allocated share-based compensation expense | $ (26,000) |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Future Minimum Rental Payments for Operating Leases (Details) | Dec. 31, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2019 | $ 1,103,000 |
2020 | 1,125,000 |
2021 | 386,000 |
2022 | 242,000 |
2023 | 247,000 |
Thereafter | 552,000 |
Operating Leases, Future Minimum Payments Due | $ 3,655,000 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) | Mar. 13, 2019USD ($) | Jan. 30, 2019USD ($) | Dec. 31, 2018USD ($)Unit | Dec. 31, 2017USD ($) |
Aggregate consideration | $ 946,000 | |||
Acquisition related costs | $ 301,000 | |||
Carrier Web Acquisition [Member] | Selling, General and Administrative Expenses [Member] | ||||
Number of subscriber units | Unit | 9,000 | |||
Acquisition related costs | $ 101,000 | |||
Pointer Telocation Ltd., [Member] | Selling, General and Administrative Expenses [Member] | ||||
Acquisition related costs | $ 705,000 | |||
Subsequent Event [Member] | Commitment Letter [Member] | Bank Hapoalim [Member] | ||||
Commitment loans | $ 30,000,000 | |||
Debt description | The Company entered into a commitment letter with Bank Hapoalim B.M. providing for two five-year senior secured term loan facilities to Pointer Holdco in an aggregate principal amount of $30 million and a five-year revolving credit facility to Pointer in an aggregate principal amount of $10 million. | |||
Subsequent Event [Member] | Revolving Credit Facility [Member] | Bank Hapoalim [Member] | ||||
Commitment loans | $ 10,000,000 | |||
Debt term | 5 years | |||
Subsequent Event [Member] | Carrier Web Acquisition [Member] | ||||
Aggregate consideration | $ 3,500,000 | |||
Payment made in cash | 2,800,000 | |||
Debtor-in-possession loan | 650,000 | |||
Additional consideration payable for the acquisition | $ 700,000 |
Quarterly Selected Financial _3
Quarterly Selected Financial Data (Unaudited) - Schedule of Quarterly Financial Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Data Disclosure [Line Items] | |||||||||||
Revenues | $ 11,491,000 | $ 13,385,000 | $ 14,809,000 | $ 13,379,000 | $ 11,167,000 | $ 11,086,000 | $ 10,706,000 | $ 7,999,000 | |||
Cost of goods and services sold | 5,367,000 | 6,588,000 | 8,394,000 | 6,917,000 | 5,558,000 | 5,459,000 | 5,165,000 | 3,849,000 | $ 27,266,000 | $ 20,031,000 | $ 18,528,000 |
Gross Profit | 6,124,000 | 6,797,000 | 6,415,000 | 6,462,000 | 5,609,000 | 5,627,000 | 5,541,000 | 4,150,000 | 25,798,000 | 20,927,000 | 18,294,000 |
Selling, general and administrative expenses | 7,061,000 | 5,921,000 | 5,993,000 | 5,696,000 | 5,718,000 | 5,063,000 | 5,046,000 | 4,653,000 | 24,671,000 | 20,480,000 | 19,427,000 |
Research and development expenses | 1,882,000 | 1,696,000 | 1,542,000 | 1,743,000 | 1,066,000 | 1,108,000 | 997,000 | 1,367,000 | 6,863,000 | 4,538,000 | 5,235,000 |
Other income, net | 10,000 | (77,000) | 4,000 | (13,000) | (10,000) | (42,000) | (22,000) | (16,000) | (165,000) | (1,000) | 6,000 |
Net loss before income tax benefit | (1,185,000) | (586,000) | (524,000) | (1,886,000) | (5,812,000) | (4,181,000) | (6,370,000) | ||||
Income tax benefit - sale of NJ R&D tax credits | 311,000 | 311,000 | |||||||||
Net loss | $ 2,809,000 | $ 897,000 | $ (1,116,000) | $ (990,000) | $ (874,000) | $ (586,000) | $ (524,000) | $ (1,886,000) | $ (5,812,000) | $ (3,870,000) | $ (6,370,000) |
Net loss per share - basic and diluted | $ (0.16) | $ (0.05) | $ (0.07) | $ (0.06) | $ (0.05) | $ (0.04) | $ (0.04) | $ (0.14) | $ (0.34) | $ (0.26) | $ (0.49) |
Products [Member] | |||||||||||
Quarterly Financial Data Disclosure [Line Items] | |||||||||||
Revenues | $ 7,171,000 | $ 9,044,000 | $ 10,784,000 | $ 9,898,000 | $ 6,353,000 | $ 6,490,000 | $ 6,375,000 | $ 4,334,000 | |||
Cost of goods and services sold | 4,101,000 | 5,287,000 | 7,408,000 | 5,842,000 | 3,736,000 | 3,475,000 | 3,427,000 | 2,815,000 | $ 22,638,000 | $ 13,453,000 | $ 14,036,000 |
Service [Member] | |||||||||||
Quarterly Financial Data Disclosure [Line Items] | |||||||||||
Revenues | 4,320,000 | 4,341,000 | 4,025,000 | 3,481,000 | 4,814,000 | 4,596,000 | 4,331,000 | 3,665,000 | |||
Cost of goods and services sold | $ 1,266,000 | $ 1,301,000 | $ 986,000 | $ 1,075,000 | $ 1,822,000 | $ 1,984,000 | $ 1,738,000 | $ 1,034,000 | $ 4,628,000 | $ 6,578,000 | $ 4,492,000 |