Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 12, 2019 | |
Document And Entity Information | ||
Entity Registrant Name | ID SYSTEMS INC | |
Entity Central Index Key | 0000049615 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data 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 Common Stock, Shares Outstanding | 18,447,779 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2019 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 8,098,000 | $ 10,159,000 |
Restricted cash | 307,000 | 307,000 |
Investments - short term | 394,000 | |
Accounts receivable, net of allowance for doubtful accounts of $67,000 and $143,000 in 2018 and 2019, respectively | 11,026,000 | 9,247,000 |
Financing receivables - current, net of allowance for doubtful accounts of $-0- in 2018 and 2019 | 782,000 | 1,036,000 |
Inventory, net | 6,986,000 | 4,649,000 |
Deferred costs - current | 3,800,000 | 3,660,000 |
Prepaid expenses and other current assets | 2,945,000 | 3,208,000 |
Total current assets | 33,944,000 | 32,660,000 |
Investments - long term | 4,131,000 | |
Financing receivables - less current portion | 1,291,000 | 1,254,000 |
Deferred costs - less current portion | 5,878,000 | 5,409,000 |
Fixed assets, net | 2,166,000 | 2,149,000 |
Goodwill | 8,373,000 | 7,318,000 |
Intangible assets, net | 6,259,000 | 4,705,000 |
Right of use asset | 2,004,000 | |
Other assets | 497,000 | 177,000 |
Total assets | 60,412,000 | 57,803,000 |
Current liabilities: | ||
Accounts payable and accrued expenses | 11,605,000 | 8,027,000 |
Deferred revenue - current | 8,366,000 | 7,902,000 |
Acquisition related contingent consideration payable | 993,000 | 946,000 |
Lease liability - current | 831,000 | |
Total current liabilities | 21,795,000 | 16,875,000 |
Deferred revenue - less current portion | 9,416,000 | 9,186,000 |
Lease liability - less current portion | 1,341,000 | |
Deferred rent | 208,000 | |
Total Liabilities | 32,552,000 | 26,269,000 |
Commitments and Contingencies (Note 21) | ||
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; 19,178,000 and 19,473,000 shares issued at December 31, 2018 and June 30, 2019, respectively; shares outstanding, 18,166,000 and 18,425,000 at December 31, 2018 and June 30, 2019, respectively | 195,000 | 192,000 |
Additional paid-in capital | 140,051,000 | 138,693,000 |
Accumulated deficit | (105,959,000) | (101,180,000) |
Accumulated other comprehensive loss | (446,000) | (435,000) |
Treasury stock; 1,012,000 and 1,048,000 common shares at cost at December 31, 2018 and June 30, 2019, respectively | (5,981,000) | (5,736,000) |
Total stockholders' equity | 27,860,000 | 31,534,000 |
Total liabilities and stockholders' equity | $ 60,412,000 | $ 57,803,000 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts, accounts receivable current | $ 143,000 | $ 67,000 |
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 | 19,473,000 | 19,178,000 |
Common stock, shares outstanding | 18,425,000 | 18,166,000 |
Treasury stock, shares | 1,048,000 | 1,012,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenue: | ||||
Total Revenue | $ 16,274,000 | $ 14,809,000 | $ 29,885,000 | $ 28,188,000 |
Cost of revenue: | ||||
Total Cost of revenue | 9,203,000 | 8,394,000 | 15,796,000 | 15,311,000 |
Gross profit | 7,071,000 | 6,415,000 | 14,089,000 | 12,877,000 |
Operating expenses: | ||||
Selling, general and administrative expenses | 5,993,000 | 5,844,000 | 12,103,000 | 11,361,000 |
Research and development expenses | 2,024,000 | 1,542,000 | 3,684,000 | 3,285,000 |
Acquisition-related expenses | 1,613,000 | 149,000 | 3,062,000 | 328,000 |
Total Operating expenses | 9,630,000 | 7,535,000 | 18,849,000 | 14,974,000 |
Loss from operations | (2,559,000) | (1,120,000) | (4,760,000) | (2,097,000) |
Interest income | 8,000 | 74,000 | 73,000 | 151,000 |
Interest expense | (26,000) | (59,000) | (46,000) | (116,000) |
Other expense, net | (8,000) | (11,000) | (46,000) | (44,000) |
Net loss | $ (2,585,000) | $ (1,116,000) | $ (4,779,000) | $ (2,106,000) |
Net loss per share - basic and diluted | $ (0.15) | $ (0.07) | $ (0.27) | $ (0.12) |
Weighted average common shares outstanding - basic and diluted | 17,678,000 | 17,066,000 | 17,650,000 | 17,024,000 |
Products [Member] | ||||
Revenue: | ||||
Total Revenue | $ 10,643,000 | $ 10,784,000 | $ 17,892,000 | $ 20,682,000 |
Cost of revenue: | ||||
Total Cost of revenue | 7,062,000 | 7,408,000 | 11,301,000 | 13,250,000 |
Service [Member] | ||||
Revenue: | ||||
Total Revenue | 5,631,000 | 4,025,000 | 11,993,000 | 7,506,000 |
Cost of revenue: | ||||
Total Cost of revenue | $ 2,141,000 | $ 986,000 | $ 4,495,000 | $ 2,061,000 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (2,585,000) | $ (1,116,000) | $ (4,779,000) | $ (2,106,000) |
Other comprehensive (loss) income, net: | ||||
Unrealized (loss) gain on investments | (22,000) | 9,000 | (115,000) | |
Reclassification of net realized investment losses included in net loss | 10,000 | 38,000 | 43,000 | |
Foreign currency translation adjustment | (46,000) | 189,000 | (58,000) | 52,000 |
Total other comprehensive gain (loss) | (46,000) | 177,000 | (11,000) | (20,000) |
Comprehensive loss | $ (2,631,000) | $ (939,000) | $ (4,790,000) | $ (2,126,000) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] | Treasury Stock [Member] | Total |
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 | (990,000) | (990,000) | ||||
Foreign currency translation adjustment | (137,000) | (137,000) | ||||
Unrealized loss on investments, net of realized amounts | (60,000) | (60,000) | ||||
Shares issued pursuant to exercise of stock options | $ 1,000 | 424,000 | 425,000 | |||
Shares issued pursuant to exercise of stock options, shares | 65,000 | |||||
Issuance of restricted stock | $ 2,000 | (2,000) | ||||
Issuance of restricted stock, shares | 235,000 | |||||
Forfeiture of restricted shares | ||||||
Forfeiture of restricted shares, shares | (20,000) | |||||
Shares withheld pursuant to vesting of restricted stock | (408,000) | (408,000) | ||||
Shares withheld pursuant to exercise of stock options | $ (238,000) | $ (238,000) | ||||
Stock based compensation - restricted stock | 431,000 | 431,000 | ||||
Stock based compensation - options and performance shares | 63,000 | 63,000 | ||||
Balance at Mar. 31, 2018 | $ 186,000 | 134,485,000 | (96,358,000) | (775,000) | (5,481,000) | 32,057,000 |
Balance, shares at Mar. 31, 2018 | 18,607,000 | |||||
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 | (2,106,000) | |||||
Foreign currency translation adjustment | 52,000 | |||||
Unrealized loss on investments, net of realized amounts | (72,000) | |||||
Balance at Jun. 30, 2018 | $ 188,000 | 135,081,000 | (97,474,000) | (598,000) | (5,529,000) | 31,668,000 |
Balance, shares at Jun. 30, 2018 | 18,729,000 | |||||
Balance at Mar. 31, 2018 | $ 186,000 | 134,485,000 | (96,358,000) | (775,000) | (5,481,000) | 32,057,000 |
Balance, shares at Mar. 31, 2018 | 18,607,000 | |||||
Net loss | (1,116,000) | (1,116,000) | ||||
Foreign currency translation adjustment | 189,000 | 189,000 | ||||
Unrealized loss on investments, net of realized amounts | (12,000) | (12,000) | ||||
Shares issued pursuant to exercise of stock options | 3,000 | 3,000 | ||||
Shares issued pursuant to exercise of stock options, shares | 1,000 | |||||
Issuance of restricted stock | $ 2,000 | (2,000) | ||||
Issuance of restricted stock, shares | 121,000 | |||||
Forfeiture of restricted shares | ||||||
Shares withheld pursuant to exercise of stock options | ||||||
Stock based compensation - restricted stock | 500,000 | 500,000 | ||||
Stock based compensation - options and performance shares | 95,000 | 95,000 | ||||
Shares repurchased pursuant to vesting of restricted stock | (48,000) | (48,000) | ||||
Balance at Jun. 30, 2018 | $ 188,000 | 135,081,000 | (97,474,000) | (598,000) | (5,529,000) | 31,668,000 |
Balance, shares at Jun. 30, 2018 | 18,729,000 | |||||
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 | |||||
Net loss | (2,194,000) | (2,194,000) | ||||
Foreign currency translation adjustment | (12,000) | (12,000) | ||||
Issuance of restricted stock | $ 1,000 | (1,000) | ||||
Issuance of restricted stock, shares | 81,000 | |||||
Stock based compensation - restricted stock | 447,000 | 447,000 | ||||
Stock based compensation - options and performance shares | 136,000 | 136,000 | ||||
Reclassification of realized losses on investments, net of unrealized amounts | 47,000 | 47,000 | ||||
Shares repurchased pursuant to vesting of restricted stock | (226,000) | (226,000) | ||||
Balance at Mar. 31, 2019 | $ 193,000 | 139,275,000 | (103,374,000) | (400,000) | (5,962,000) | 29,732,000 |
Balance, shares at Mar. 31, 2019 | 19,259,000 | |||||
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 | |||||
Net loss | (4,779,000) | |||||
Foreign currency translation adjustment | (58,000) | |||||
Unrealized loss on investments, net of realized amounts | 47,000 | |||||
Balance at Jun. 30, 2019 | $ 195,000 | 140,051,000 | (105,959,000) | (446,000) | (5,981,000) | 27,860,000 |
Balance, shares at Jun. 30, 2019 | 19,473,000 | |||||
Balance at Mar. 31, 2019 | $ 193,000 | 139,275,000 | (103,374,000) | (400,000) | (5,962,000) | 29,732,000 |
Balance, shares at Mar. 31, 2019 | 19,259,000 | |||||
Net loss | (2,585,000) | (2,585,000) | ||||
Foreign currency translation adjustment | (46,000) | (46,000) | ||||
Shares issued pursuant to exercise of stock options | 177,000 | 177,000 | ||||
Shares issued pursuant to exercise of stock options, shares | 50,000 | |||||
Issuance of restricted stock | $ 2,000 | (2,000) | ||||
Issuance of restricted stock, shares | 164,000 | |||||
Stock based compensation - restricted stock | 440,000 | 449,000 | ||||
Stock based compensation - options and performance shares | 161,000 | 152,000 | ||||
Reclassification of realized losses on investments, net of unrealized amounts | ||||||
Shares repurchased pursuant to vesting of restricted stock | (19,000) | (19,000) | ||||
Balance at Jun. 30, 2019 | $ 195,000 | $ 140,051,000 | $ (105,959,000) | $ (446,000) | $ (5,981,000) | $ 27,860,000 |
Balance, shares at Jun. 30, 2019 | 19,473,000 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: (net of assets acquired) | ||
Net loss | $ (4,779,000) | $ (2,106,000) |
Adjustments to reconcile net loss to cash used in operating activities: | ||
Bad debt expense | 110,000 | 4,000 |
Stock-based compensation expense | 1,184,000 | 1,089,000 |
Depreciation and amortization | 852,000 | 782,000 |
Inventory reserve | 93,000 | 140,000 |
Change in contingent consideration | 47,000 | 112,000 |
Other non-cash items | (11,000) | 4,000 |
Changes in: | ||
Accounts receivable | (1,697,000) | (3,205,000) |
Financing receivables | 217,000 | 363,000 |
Inventory | (2,231,000) | 582,000 |
Prepaid expenses and other assets | 270,000 | (1,156,000) |
Deferred costs | (609,000) | (95,000) |
Deferred revenue | 694,000 | (124,000) |
Accounts payable and accrued expenses | 3,578,000 | 299,000 |
Net cash used in operating activities | (2,282,000) | (3,311,000) |
Cash flows from investing activities: | ||
Acquisitions | (3,800,000) | |
Capital expenditures | (396,000) | (150,000) |
Purchase of investments | (99,000) | (1,963,000) |
Proceeds from the sale and maturities of investments | 4,638,000 | 3,915,000 |
Net cash provided by investing activities | 343,000 | 1,802,000 |
Cash flows from financing activities: | ||
Proceeds from exercise of stock options | 177,000 | 190,000 |
Common stock repurchased - vesting of restricted stock | (245,000) | (456,000) |
Net cash used in financing activities | (68,000) | (266,000) |
Effect of foreign exchange rate changes on cash and cash equivalents | (54,000) | 71,000 |
Net decrease in cash, cash equivalents and restricted cash | (2,061,000) | (1,704,000) |
Cash, cash equivalents and restricted cash - beginning of period | 10,466,000 | 5,403,000 |
Cash, cash equivalents and restricted cash - end of period | 8,405,000 | 3,699,000 |
Reconciliation of cash, cash equivalents, and restricted cash, beginning of period | ||
Cash and cash equivalents | 10,159,000 | 5,097,000 |
Restricted cash | 307,000 | 306,000 |
Cash, cash equivalents, and restricted cash, beginning of period | 10,466,000 | 5,403,000 |
Cash and cash equivalents | 8,098,000 | 3,393,000 |
Restricted cash | 307,000 | 306,000 |
Cash, cash equivalents, and restricted cash, end of beginning of period | 8,405,000 | 3,699,000 |
Cash paid for: | ||
Taxes | ||
Interest | 56,000 | |
Noncash investing and financing activities: | ||
Unrealized (loss) gain on investments | 47,000 | (72,000) |
Value of shares withheld pursuant to stock issuance | $ 238,000 |
Description of the Company and
Description of the Company and Basis of Presentation | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Description of the Company and Basis of Presentation | NOTE 1 - DESCRIPTION OF THE COMPANY AND BASIS OF PRESENTATION Description of the Company 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 trucks, semi-tractors, 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. Basis of Presentation The unaudited interim condensed 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 (collectively referred to as the “Company”). All material intercompany balances and transactions have been eliminated in consolidation. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, such statements include all adjustments (consisting only of normal recurring items) which are considered necessary for a fair presentation of the consolidated financial position of the Company as of June 30, 2019, the consolidated results of its operations for the three- and six-month periods ended June 30, 2018 and 2019, the consolidated change in stockholders’ equity for the three-month periods ended March 31, and June 30, 2018 and 2019 and the consolidated cash flows for the six-month periods ended June 30, 2018 and 2019. The results of operations for the three- and six-month periods ended June 30, 2019 are not necessarily indicative of the operating results for the full year. These financial statements should be read in conjunction with the audited consolidated financial statements and related disclosures for the year ended December 31, 2018 included in the Company’s Annual Report on Form 10-K for the year then ended. Certain amounts included in selling, general and administrative expenses in the prior period’s consolidated financial statements have been reclassified to acquisition-related expenses to conform to the current period presentation for comparative purposes. 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. The assets the Company acquired in the CarrierWeb Acquisition will be integrated into the Company’s logistics visibility solutions and products. 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 add customers and subscriber units. 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 $8.50 in cash and 1.272 shares of common stock of Parent per ordinary share of Pointer. 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 on or prior to October 31, 2019. At the closing of the Merger Transactions, the combined company will be named PowerFleet and the shares of PowerFleet common stock are expected to be listed on the Nasdaq Global Market and the Tel Aviv Stock Exchange under the symbol “PWFL.” 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. Liquidity As of June 30, 2019, we had cash (including restricted cash) and cash equivalents of $8.4 million and working capital of $12.1 million. The Company’s primary sources of cash are cash flows from operating activities and the Company’s holdings of cash and cash equivalents 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 August 14, 2020. |
Cash and Cash Equivalents
Cash and Cash Equivalents | 6 Months Ended |
Jun. 30, 2019 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | NOTE 2 - CASH AND CASH EQUIVALENTS The Company considers all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents unless they are legally or contractually restricted. The Company’s cash and cash equivalent balances exceed Federal Deposit Insurance Corporation (FDIC) limits. |
Use of Estimates
Use of Estimates | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Use of Estimates | NOTE 3 - USE OF ESTIMATES The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company continually evaluates estimates used in the preparation of the financial statements for reasonableness. The most significant estimates relate to 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. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | NOTE 4 - INVESTMENTS The Company’s investments as of December 31, 2018 include debt securities, U.S. Treasury Notes, government and state agency bonds and corporate bonds, 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, 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 gains and (losses) reported as comprehensive income or (loss). For the three- and six-month periods ended June 30, 2018, the Company reported unrealized loss, net of realized amounts, of $22,000 and $115,000, respectively, and for the three- and six-month periods ended June 30, 2019, the Company reported unrealized gain, net of realized amounts of $-0- and $9,000, 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 cost, gross unrealized gains (losses) and fair value of available for sale securities by major security types as of December 31, 2018 are 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 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 participants’ assumptions. As of December 31, 2018, all of the Company’s investments are classified as Level 1 fair value measurements. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | NOTE 5 - 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 15). 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. The following table sets forth our revenues by product line for the three- and six-month periods ended June 30, 2019 and 2018: Three Months Ended June 30, 2019 Product Service Total Industrial truck management $ 5,423,000 $ 1,850,000 $ 7,273,000 Connected vehicles 3,121,000 1,569,000 4,690,000 Logistics visibility 2,099,000 2,212,000 4,311,000 Total Revenue $ 10,643,000 $ 5,631,000 $ 16,274,000 Three Months Ended June 30, 2018 Product Service Total Industrial truck asset management $ 4,518,000 $ 1,862,000 $ 6,380,000 Connected vehicles 4,773,000 184,000 4,957,000 Logistics visibility 1,493,000 1,979,000 3,472,000 Total Revenue $ 10,784,000 $ 4,025,000 $ 14,809,000 Six Months Ended June 30, 2019 Product Service Total Industrial truck management $ 11,008,000 $ 3,664,000 $ 14,672,000 Connected vehicles 3,121,000 3,897,000 7,018,000 Logistics visibility 3,763,000 4,432,000 8,195,000 Total Revenue $ 17,892,000 $ 11,993,000 $ 29,885,000 Six Months Ended June 30, 2018 Product Service Total Industrial truck management $ 10,694,000 $ 3,306,000 $ 14,000,000 Connected vehicles 7,029,000 217,000 7,246,000 Logistics visibility 2,959,000 3,983,000 6,942,000 Total Revenue $ 20,682,000 $ 7,506,000 $ 28,188,000 Industrial truck management and connected vehicles solutions 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. Logistics visibility solutions 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. 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. 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 Condensed Consolidated Statements of Operations. The balances of contract assets, and contract liabilities from contracts with customers are as follows as of December 31, 2018 and June 30, 2019: December 31, 2018 June 30, 2019 (Unaudited) Current assets: Deferred sales commissions to employees $ 585,000 $ 724,000 Deferred costs $ 9,069,000 $ 9,678,000 Current liabilities: Deferred revenue -other (1) $ 305,000 $ 311,000 Deferred maintenance and SaaS revenue (1) 4,607,000 4,901,000 Deferred logistics visibility solutions product revenue (1) 12,176,000 12,570,000 17,088,000 17,782,000 Less: Current portion 7,902,000 8,366,000 Deferred revenue - less current portion $ 9,186,000 $ 9,416,000 (1) We record deferred revenues when cash payments are received or due in advance of our performance. For the three- and six-month periods ended June 30, 2018 and 2019, the Company recognized revenue of $2,643,000 and $6,891,000, respectively, and $3,738,000 and $6,238,000, respectively, that was included in the deferred revenue balance at the beginning of each reporting period. The Company expects to recognize deferred revenue as revenue before year 2024, 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. 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 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. 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. Development projects with Avis Budget Car Rental, LLC On March 18, 2017 (the “SOW#4 Effective Date”), the Company entered into a statement of work (the “SOW#4”) with Avis Budget Car Rental, LLC (“ABCR”), a subsidiary of Avis Budget Group, Inc. (“Avis”), 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. 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 non-recurring engineering (“NRE”) services for 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 Company recognizes revenue on the non-recurring engineering services over time, on an input-cost method performance basis, as determined by the relationship of actual labor and material costs incurred to date compared to the estimated total project costs. Estimates of total project costs are reviewed and revised during the term of the project. Revisions to project costs estimates, where applicable, are recorded in the period in which the facts that give rise to such changes become known. For the three- and six-month periods ended June 30, 2019, the Company recognized SOW#5 NRE revenue of $1,048,000 and $2,846,000. 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. Approximately $1.0 million of the SOW#5 NRE transaction price that has not yet been recognized as revenue as of June 30, 2019 is expected to be recognized in 2019. 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; and ● the range of possible consideration amounts. |
Financing Receivables
Financing Receivables | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Financing Receivables | NOTE 6 - FINANCING RECEIVABLES Financing receivables consists of 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 products and is reflected net of unearned interest income of $114,000 and $93,000 at December 31, 2018 and June 30, 2019, respectively, at a weighted-average discount rate of 3%. Scheduled maturities of sales-type lease minimum lease payments outstanding as of June 30, 2019 are as follows: Year ending December 31: July - December 2019 $ 505,000 2020 850,000 2021 445,000 2022 188,000 2023 74,000 Thereafter 11,000 2,073,000 Less: Current portion 782,000 Sales-type lease receivable - less current portion $ 1,291,000 The allowance for doubtful accounts represents the Company’s best estimate of the amount of credit losses in the Company’s existing sales-type lease receivables. The allowance for doubtful accounts 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 its 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 lease’s effective interest rate. There were no impairment losses recognized for the three- and six-month periods ended June 30, 2018 and 2019. 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 leases are applied to reduce the principal amount of such leases 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 income 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. |
Inventory
Inventory | 6 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory | NOTE 7 - INVENTORY Inventory, which primarily consists of finished goods and components used in the Company’s products, is stated at the lower of cost or net realizable value using the first-in first-out (FIFO) method. Inventory is shown net of a valuation reserve of $119,000 at December 31, 2018, and $166,000 at June 30, 2019. Inventories consist of the following: December 31, 2018 June 30, 2019 (Unaudited) Components $ 2,218,000 $ 1,145,000 Finished goods 2,431,000 5,841,000 $ 4,649,000 $ 6.986,000 |
Fixed Assets
Fixed Assets | 6 Months Ended |
Jun. 30, 2019 | |
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, 2018 June 30, 2019 (Unaudited) Equipment $ 1,114,000 $ 1,185,000 Computer software and web application development 5,633,000 5,636,000 Computer hardware 2,664,000 2,534,000 Furniture and fixtures 466,000 504,000 Automobiles 60,000 60,000 Leasehold improvements 181,000 238,000 10,118,000 10,157,000 Accumulated depreciation and amortization (7,969,000 ) (7,991,000 ) $ 2,149,000 $ 2,166,000 Depreciation and amortization expense of fixed assets for the three- and six-month periods ended June 30, 2018 was $211,000 and $426,000, respectively, and for the three- and six-month periods ended June 30, 2019 was $190,000 and $379,000, respectively. This includes amortization of costs associated with computer software and web application development for the three- and six-month periods ended June 30, 2018 of $131,000 and $262,000, respectively, and for the three- and six-month periods ended June 30, 2019 of $133,000 and $266,000, The Company capitalizes in fixed assets the costs of software development and web application development. Specifically, the assets comprise an implementation and enhancements of Enterprise Resource Planning (ERP) software, enhancements to the VeriWise TM |
Acquisition
Acquisition | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Acquisition | NOTE 9 - ACQUISITION On January 30, 2019, the Company completed the CarrierWeb Acquisition. Aggregate consideration for the CarrierWeb Acquisition was $3,500,000, consisting of (i) closing cash payment of $2,800,000, less 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 on January 11, 2019, and (ii) $700,000 payment in April 2019, when CarrierWeb Services Ltd. (“CarrierWeb Ireland”), an affiliate of CarrierWeb, was restored to the Register of Companies in Ireland. 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. In connection with the restoration of CarrierWeb Ireland to the Register of Companies in Ireland, the Company also made certain loans to CarrierWeb Ireland in the aggregate principal amount of $300,000 which is included in other assets in the Condensed Consolidated Balance Sheets. See Note 23 - Subsequent Events. 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 add customers and subscriber units. For the three- and six-month periods ended June 30, 2019, the Company incurred acquisition-related expenses of approximately $30,000 and $160,000, respectively, which are included in acquisition-related fees. The purchase method of accounting in accordance with ASC805, Business Combinations The following table summarizes the approximate preliminary purchase price allocation based on estimated fair values of the net assets acquired at the acquisition date: Accounts receivable $ 192,000 Inventory 200,000 Other assets 26,000 Customer relationships 945,000 Trademark and tradename 104,000 Patents 978,000 Goodwill (a) 1,055,000 Net assets acquired $ 3,500,000 (a) The goodwill is fully deductible for tax purposes. The Company will finalize the purchase price allocation as soon as all the required information is available. The results of operations of CarrierWeb have been included in the condensed consolidated statement of operations as of the effective date of acquisition. For the three- and six-month periods ended June 30, 2019, the CarrierWeb acquisition contributed approximately $1,348,000 and $1,976,000, respectively, to the Company’s revenues. Operating income contributed by the CarrierWeb acquisition was not separately identifiable due to Company’s integration activities and is impracticable to provide. On July 31, 2017, the Company, together with its 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”), 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 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 and removes certain restrictions on the operations of the Company during such twelve-month period. Because the amendment fixed the second anniversary earn-out payment by removing the performance criteria associated with such earn-out payment, the second anniversary earn-out payment is no longer considered contingent consideration. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | NOTE 10 - INTANGIBLE ASSETS AND GOODWILL The following table summarizes identifiable intangible assets of the Company as of December 31, 2018 and June 30, 2019: June 30, 2019 (Unaudited) Useful Lives (In Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortized: Customer relationships 9 - 10 $ 4,068,000 (642,000 ) 3.426,000 Trademark and tradename 3 - 15 1,471,000 (255,000 ) 1,216,000 Patents 7 - 13 2,467,000 (1,344,000 ) 1,123,000 Favorable contract interest 5 388,000 (186,000 ) 202,000 Covenant not to compete 4 208,000 (81,000 ) 127,000 8,602,000 (2,508,000 ) 6,094,000 Unamortized: Customer list 104,000 - 104,000 Trademark and Tradename 61,000 - 61,000 165,000 - 165,000 Total $ 8,767,000 $ (2,508,000 ) $ 6,259,000 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 Amortization expense for the three- and six-month periods ended June 30, 2018 was $178,000 and $356,000, respectively, and for the three- and six-month periods ended June 30, 2019 was $280,000 and $473,000, respectively. Estimated future amortization expense for each of the five succeeding fiscal years for these intangible assets is as follows: Year ending December 31: July - December 2019 $ 495,000 2020 991,000 2021 815,000 2022 710,000 2023 683,000 Thereafter 2,400,000 6,094,000 The change in goodwill from January 1, 2019 to June 30, 2019 is as follows: Balance of as January 1, 2019 $ 7,318,000 CarrierWeb acquisition 1,055,000 Balance as of June 30, 2019 $ 8,373,000 |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | NOTE 11 - STOCK-BASED COMPENSATION Stock Option Plans 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 92,000 shares available for future issuance under the 2018 Plan at June 30, 2019. 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. Performance Shares - Transaction-Related Awards In connection with the Merger Transactions, on March 13, 2019, the Company’s Board of Directors approved the grant of options to purchase 350,000 shares of the Company’s common stock to Chris Wolfe, the Company’s Chief Executive Officer, and the grant of options to purchase 150,000 shares of the Company’s common stock to Ned Mavrommatis, the Company’s Chief Financial Officer. The options are subject to the terms of the 2018 Plan, have an exercise price of $6.28 per share, vest upon the attainment of adjusted EBITDA targets for the fiscal years ending December 31, 2020 and December 31, 2021 and become exercisable 180 days after vesting. Vesting of the options will accelerate in the event of certain change of control transactions, provided that the options will not accelerate upon the consummation of the Pointer Merger Agreement. The options will automatically expire upon the termination of the Investment Agreement and the Pointer Merger Agreement. The Company’s Board of Directors also approved the grant of options to purchase an aggregate of 500,000 shares of the Company’s common stock, which will consist of grants to Chris Wolfe and Ned Mavrommatis in amounts to be determined and approved by the Company’s Board of Directors or the Compensation Committee of the Company’s Board of Directors. The options will be subject to the terms of the 2018 Plan, will have an exercise price equal to the higher of $6.00 per share or the closing price of the Company’s common stock on the closing date of the Merger Transactions, vest upon the attainment of adjusted EBITDA targets for the fiscal years ending December 31, 2020 and December 31, 2021 and become exercisable 180 days after vesting. Vesting of the options will accelerate in the event of certain change of control transactions, provided that the options will not accelerate upon the consummation of the Merger Transactions. The options will automatically expire upon the failure to obtain stockholder approval of an amendment to the 2018 Plan to increase the number of shares available under such plan within one year. The following table summarizes the activity relating to the Company’s stock options for the six-month period ended June 30, 2019: Weighted- Weighted- Average Average Remaining Aggregate Exercise Contractual Intrinsic Options Price Term Value Outstanding at beginning of year 1,220,000 $ 5.37 Granted 869,000 6.20 Exercised (50,000 ) 3.54 Forfeited or expired (1,000 ) 3.29 Outstanding at end of period 2,038,000 $ 5.77 8 years $ 610,000 Exercisable at end of period 1,254,000 $ 5.68 7 years $ 8,000 The fair value of each option grant on the date of grant is estimated using the Black-Scholes option-pricing model reflecting the following weighted-average assumptions: June 30, 2018 2019 Expected volatility 43.0 % 24.2 % Expected life of options (in years) 4 3 Risk free interest rate 2.73 % 1.41 % Dividend yield 0 % 0 % Weighted average fair value of options granted during the period $ 2.37 $ 2.72 Expected volatility is based on historical volatility of the Company’s common stock and the expected life of options is based on historical data with respect to employee exercise periods. The Company recorded stock-based compensation expense of $95,000 and $195,000 for the three- and six-month periods ended June 30, 2018, respectively and $161,000 and $297,000 for the three- and six-month periods ended June 30, 2019, respectively, in connection with awards made under the stock option plans. The fair value of options vested during the six-month periods ended June 30, 2018 and 2019 was $239,000 and $271,000, respectively. The total intrinsic value of options exercised during the six-month periods ended June 30, 2018 and 2019 was $65,000 and $112,000, respectively. As of June 30, 2019, there was approximately $1,548,000 of unrecognized compensation cost related to non-vested options granted under the Company’s stock option plans. That cost is expected to be recognized over a weighted-average period of 2.91 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. Restricted Stock 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 stock at the time of grant and, upon vesting, there are no contractual restrictions on the stock. The fair value of each share is based on the Company’s closing stock price on the date of the grant. A summary of all non-vested restricted stock for the six-month period ended June 30, 2019 is as follows: Weighted- Number of Average Non-vested Grant Date Shares Fair Value Restricted stock, non-vested, beginning of year 568,000 $ 6.65 Granted 245,000 5.74 Vested (199,000 ) 6.62 Forfeited - - Restricted stock, non-vested, end of period 614,000 $ 6.30 The Company recorded stock-based compensation expense of $500,000 and $931,000, respectively, for the three- and six-month periods ended June 30, 2018 and $440,000 and $887,000, respectively, for the three- and six-month periods ended June 30, 2019, in connection with restricted stock grants. As of June 30, 2019, there was $3,304,000 of total unrecognized compensation cost related to non-vested shares. That cost is expected to be recognized over a weighted-average period of 2.37 years. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | NOTE 12 - STOCKHOLDERS’ EQUITY 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. 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 six-month period ended June 30, 2019. As of June 30, 2019, 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. Shares Withheld or Repurchased During the six-month periods ended June 30, 2018 and 2019, 92,000 and 36,000 shares, respectively, of the Company’s common stock were withheld to satisfy minimum tax withholding obligations in connection with the vesting of restricted shares and to pay the exercise price of stock options in the aggregate amount of $694,000 and $245,000, respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | NOTE 13 - ACCUMULATED OTHER COMPREHENSIVE 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 Condensed Consolidated Balance Sheets. The accumulated balances for each classification of other comprehensive loss for the six-month period ended June 30, 2019 are as follows: Unrealized Accumulated Foreign gain (losses) other currency on comprehensive items investments loss Balance at January 1, 2019 $ (388,000 ) $ (47,000 ) $ (435,000 ) Net current period change (58,000 ) 47,000 (11,000 ) Balance at June 30, 2019 $ (446,000 ) $ - $ (446,000 ) The accumulated balances for each classification of other comprehensive loss for the six-month period ended June 30, 2018 are as follows: Unrealized Accumulated Foreign gain (losses) other currency on comprehensive items investments loss Balance at January 1, 2018 $ (465,000 ) $ (113,000 ) $ (578,000 ) Net current period change 52,000 (72,000 ) (20,000 ) Balance at June 30, 2018 $ (413,000 ) $ (185,000 ) $ (598,000 ) 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 $52,000 and $(58,000) for the six-month periods ended June 30, 2018 and 2019, 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 Condensed Consolidated Statement of Operations. Gains and losses resulting from foreign currency transactions are included in determining net income or loss. Foreign currency transactions (losses) for the three- and six-month periods ended June 30, 2018 of $(277,000) and $(96,000), respectively, and for the three- and six-month periods ended June 30, 2019 of $(4,000) and $(30,000), respectively, are included in selling, general and administrative expenses in the Condensed Consolidated Statement of Operations. |
Net Loss Per Share of Common St
Net Loss Per Share of Common Stock | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share of Common Stock | NOTE 14 - NET LOSS PER SHARE OF COMMON STOCK Net loss per share for the three- and six-month periods ended June 30, 2018 and 2019 are as follows: Three Months Ended Six Months Ended June 30, June 30, 2018 2019 2018 2019 Basic and diluted loss per share Net loss $ (1,116,000 ) $ (2,585,000 ) $ (2,106,000 ) $ (4,779,000 ) Weighted-average shares outstanding 17,066,000 17,678,000 17,024,000 17,650,000 Basic and diluted net loss per share $ (0.07 ) $ (0.15 ) $ (0.12 ) $ (0.27 ) 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 unvested restricted stock and performance shares awards. For the three- and six-month periods ended June 30, 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 of 1,871,000 would have been anti-dilutive. For the three- and six-month periods ended June 30, 2019, 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 of 2,652,000 would have been anti-dilutive due to the net loss. |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 6 Months Ended |
Jun. 30, 2019 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Expenses | NOTE 15 - ACCOUNTS PAYABLE AND ACCRUED EXPENSES Accounts payable and accrued expenses consist of the following: December 31, 2018 June 30, 2019 (Unaudited) Accounts payable $ 6,644,000 $ 10,631,000 Accrued warranty 422,000 335,000 Accrued compensation 870,000 451,000 Other current liabilities 91,000 188,000 $ 8,027,000 $ 11,605,000 The Company’s products are warranted against defects in materials and workmanship for a period of one to three years from the date of acceptance of the product by the customer. The customers may purchase an extended warranty providing coverage up to a maximum of 60 months. A provision for estimated future warranty costs is recorded for expected or historical warranty matters related to equipment shipped and is included in accounts payable and accrued expenses in the Condensed Consolidated Balance Sheets as of December 31, 2018 and June 30, 2019. The following table summarizes warranty activity for the six-month periods ended June 30, 2018 and 2019: Six Months Ended June 30, 2018 2019 Accrued warranty reserve, beginning of period $ 535,000 $ 422,000 Accrual for product warranties issued 67,000 152,000 Product replacements and other warranty expenditures (75,000 ) (139,000 ) Expiration of warranties (78,000 ) (100,000 ) Accrued warranty reserve, end of period $ 449,000 $ 335,000 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | NOTE 16 - LEASES The Company determines whether an arrangement is a lease at inception. The Company has operating leases for office space and office equipment. The Company’s leases have remaining lease terms of one year to seven years, some of which include options to extend the lease term for up to five years. The Company considered these options to extend in determining the lease term used to establish the Company’s right-of use assets and lease liabilities once reasonably certain of exercise. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. Right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and operating lease liabilities are recognized at the lease commencement date based on the present value of the future lease payments over the lease term. The operating lease ROU asset also includes any lease payments made in advance of lease commencement and excludes lease incentives. The lease terms used in the calculations of the operating ROU assets and operating lease liabilities include options to extend or terminate the lease when the Company is reasonably certain that it will exercise those options. Lease expense for lease payments is recognized on a straight-line basis over the lease term. As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company has lease agreements with lease and non-lease components, which are generally not accounted for separately. Components of lease expense are as follows: Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Operating lease cost $ 210,000 $ 389,000 Short term lease cost 100,000 144,000 $ 310,000 $ 533,000 The Company has lease arrangements which are classified as short-term in nature. The Company has elected 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. Supplemental cash flow information and non-cash activity related to our operating leases are as follows: Six Months Ended Operating cash flow information: Cash paid for amounts included in the measurement of lease liabilities $ 384,000 Non-cash activity: Right-of-use assets obtained in exchange for lease obligations $ 2,556,000 Weighted-average remaining lease term and discount rate for our operating leases are as follows: June 30, 2019 Weighted-average remaining lease term (in years) 3.8 Weighted-average discount rate 7.5 % Scheduled maturities of operating lease liabilities outstanding as of June 30, 2019 are as follows: Year ending December 31, July - December 2019 $ 481,000 2020 971,000 2021 302,000 2022 172,000 2023 177,000 Thereafter 416,000 Total lease payments 2,519,000 Less: Imputed interest (347,000 ) Present value of lease liabilities $ 2,172,000 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 17 - INCOME TAXES The Company accounts for income taxes under the asset and liability approach. Deferred tax assets and liabilities are recognized for the expected future tax consequences attributed to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to reverse. As of June 30, 2019, the Company had provided a valuation allowance to fully reserve its net operating loss carryforwards and other items giving rise to deferred tax assets, primarily as a result of anticipated net losses for income tax purposes. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | NOTE 18 - FAIR VALUE OF FINANCIAL INSTRUMENTS Cash and cash equivalents and investments in securities are carried at fair value. Financing receivables and capital lease obligation are carried at cost, which is not materially different than fair value. Accounts receivable, accounts payable and other liabilities approximate their fair values due to the short period to maturity of these instruments. |
Concentration of Customers
Concentration of Customers | 6 Months Ended |
Jun. 30, 2019 | |
Risks and Uncertainties [Abstract] | |
Concentration of Customers | NOTE 19 - CONCENTRATION OF CUSTOMERS For the six-month period ended June 30, 2019 and as of June 30, 2019, one customer accounted for 23% of the Company’s revenue and two customers accounted for 34% and 10% of the Company’s accounts receivable. Two customers accounted for 22% and 20% of finance receivables as of June 30, 2019. For the six-month period ended June 30, 2018 and as of June 30, 2018, three customers accounted for 26%, 11% and 11% of the Company’s revenue and one customer accounted for 32% of the Company’s accounts receivable. One customer accounted for 18% of finance receivables as of June 30, 2018. |
Wholly Owned Foreign Subsidiari
Wholly Owned Foreign Subsidiaries | 6 Months Ended |
Jun. 30, 2019 | |
Wholly Owned Foreign Subsidiaries [Abstract] | |
Wholly Owned Foreign Subsidiaries | NOTE 20 - 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 Condensed Consolidated Statement of Operations are as follows: For the Three Months Ended For the Six Months Ended June 30, June 30, 2018 2019 2018 2019 Net revenue $ 328,000 $ 750,000 $ 522,000 $ 1,221,000 Net income (loss) (186,000 ) 126,000 (230,000 ) 69,000 Total assets of IDS GmbH were $1,430,000 and $2,251,000 as of December 31, 2018 and June 30, 2019, 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 Condensed Consolidated Statement of Operations are as follows: For the Three Months Ended For the Six Months Ended June 30, June 30, 2018 2019 2018 2019 Net revenue $ 35,000 $ 49,000 $ 132,000 $ 229,000 Net (loss) income (176,000 ) (72,000 ) (130,000 ) 29,000 Total assets of IDS Ltd were $1,054,000 and $1,106,000 as of December 31, 2018 and June 30, 2019, respectively. IDS Ltd operates in a local currency environment using the British Pound as its functional currency. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 21 - COMMITMENTS AND CONTINGENCIES Except for normal operating leases, the Company is not currently subject to any material commitments. Severance agreements The Company has entered into severance agreements with two executive officers. The severance agreement for Ned Mavrommatis, the Company’s Chief Financial Officer, provides Mr. Mavrommatis 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 agreement with Mr. Mavrommatis, Mr. Mavrommatis 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, and (iii) partial accelerated vesting of the executive’s previously granted stock options and restricted stock awards. 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. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | NOTE 22 - RECENT ACCOUNTING PRONOUNCEMENTS 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 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 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 conformed to this rule in its Quarterly Report on Form 10-Q for the quarter ended March 31, 2019. 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 adoption of this guidance did not have a material impact on the Company’s financial results. 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 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 adoption of this guidance did not have a material impact on the Company’s financial results. In February 2016, the FASB issued ASU No. 2016-02, “Leases” (Topic 842), which requires lessees to recognize the following for all leases (with the exception of short-term leases) at the commencement date: a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. For leases with a term of 12 months or less, the lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. Also, in July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): “Targeted Improvements,” which provides an optional transition method to allow entities, on adoption of ASU 2016-02, to report prior periods under previous lease accounting guidance. The revised guidance must be applied on a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The revised guidance is effective for the Company beginning after December 15, 2018, including interim periods within those fiscal years. The Company adopted Topic 842; refer to “Note 16 - Leases” for more information. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 23 – SUBSEQUENT EVENTS On July 30, 2019, the Company, completed the acquisition of substantially all of the assets of CarrierWeb Services Ltd. (“CarrierWeb Ireland”), an affiliate of CarrierWeb, from e*freightrac Holding B.V., the owner of the outstanding equity of CarrierWeb Ireland. Consideration for the CarrierWeb Ireland acquisition included (i) $500,000 in cash paid at closing, and (ii) 126,748 shares of the Company’s common stock, less (1) 55,783 shares for the payment of aggregate principal amount plus accrued and unpaid interest outstanding under $300,000 loans, less (2) 43,706 shares held back. The CarrierWeb Ireland acquisition will be accounted for by using the acquisition method of accounting and the purchase price paid will be assigned to the net assets acquired based on the fair value of such assets and liabilities at the date of the acquisition. |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available for Sale Securities Reconciliation | The cost, gross unrealized gains (losses) and fair value of available for sale securities by major security types as of December 31, 2018 are 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 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenue Disaggregated by Revenue Sources | The following table sets forth our revenues by product line for the three- and six-month periods ended June 30, 2019 and 2018: Three Months Ended June 30, 2019 Product Service Total Industrial truck management $ 5,423,000 $ 1,850,000 $ 7,273,000 Connected vehicles 3,121,000 1,569,000 4,690,000 Logistics visibility 2,099,000 2,212,000 4,311,000 Total Revenue $ 10,643,000 $ 5,631,000 $ 16,274,000 Three Months Ended June 30, 2018 Product Service Total Industrial truck asset management $ 4,518,000 $ 1,862,000 $ 6,380,000 Connected vehicles 4,773,000 184,000 4,957,000 Logistics visibility 1,493,000 1,979,000 3,472,000 Total Revenue $ 10,784,000 $ 4,025,000 $ 14,809,000 Six Months Ended June 30, 2019 Product Service Total Industrial truck management $ 11,008,000 $ 3,664,000 $ 14,672,000 Connected vehicles 3,121,000 3,897,000 7,018,000 Logistics visibility 3,763,000 4,432,000 8,195,000 Total Revenue $ 17,892,000 $ 11,993,000 $ 29,885,000 Six Months Ended June 30, 2018 Product Service Total Industrial truck management $ 10,694,000 $ 3,306,000 $ 14,000,000 Connected vehicles 7,029,000 217,000 7,246,000 Logistics visibility 2,959,000 3,983,000 6,942,000 Total Revenue $ 20,682,000 $ 7,506,000 $ 28,188,000 |
Schedule of Deferred Revenue | The balances of contract assets, and contract liabilities from contracts with customers are as follows as of December 31, 2018 and June 30, 2019: December 31, 2018 June 30, 2019 (Unaudited) Current assets: Deferred sales commissions to employees $ 585,000 $ 724,000 Deferred costs $ 9,069,000 $ 9,678,000 Current liabilities: Deferred revenue -other (1) $ 305,000 $ 311,000 Deferred maintenance and SaaS revenue (1) 4,607,000 4,901,000 Deferred logistics visibility solutions product revenue (1) 12,176,000 12,570,000 17,088,000 17,782,000 Less: Current portion 7,902,000 8,366,000 Deferred revenue - less current portion $ 9,186,000 $ 9,416,000 (1) We record deferred revenues when cash payments are received or due in advance of our performance. For the three- and six-month periods ended June 30, 2018 and 2019, the Company recognized revenue of $2,643,000 and $6,891,000, respectively, and $3,738,000 and $6,238,000, respectively, that was included in the deferred revenue balance at the beginning of each reporting period. The Company expects to recognize deferred revenue as revenue before year 2024, 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. |
Financing Receivables (Tables)
Financing Receivables (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Scheduled Maturities of Sales-type Lease Minimum Lease Payments | Scheduled maturities of sales-type lease minimum lease payments outstanding as of June 30, 2019 are as follows: Year ending December 31: July - December 2019 $ 505,000 2020 850,000 2021 445,000 2022 188,000 2023 74,000 Thereafter 11,000 2,073,000 Less: Current portion 782,000 Sales-type lease receivable - less current portion $ 1,291,000 |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consist of the following: December 31, 2018 June 30, 2019 (Unaudited) Components $ 2,218,000 $ 1,145,000 Finished goods 2,431,000 5,841,000 $ 4,649,000 $ 6.986,000 |
Fixed Assets (Tables)
Fixed Assets (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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, 2018 June 30, 2019 (Unaudited) Equipment $ 1,114,000 $ 1,185,000 Computer software and web application development 5,633,000 5,636,000 Computer hardware 2,664,000 2,534,000 Furniture and fixtures 466,000 504,000 Automobiles 60,000 60,000 Leasehold improvements 181,000 238,000 10,118,000 10,157,000 Accumulated depreciation and amortization (7,969,000 ) (7,991,000 ) $ 2,149,000 $ 2,166,000 |
Acquisition (Tables)
Acquisition (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Schedule of Purchase Price Allocation on Net Assets Acquired | The following table summarizes the approximate preliminary purchase price allocation based on estimated fair values of the net assets acquired at the acquisition date: Accounts receivable $ 192,000 Inventory 200,000 Other assets 26,000 Customer relationships 945,000 Trademark and tradename 104,000 Patents 978,000 Goodwill (a) 1,055,000 Net assets acquired $ 3,500,000 (a) The goodwill is fully deductible for tax purposes. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019: June 30, 2019 (Unaudited) Useful Lives (In Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortized: Customer relationships 9 - 10 $ 4,068,000 (642,000 ) 3.426,000 Trademark and tradename 3 - 15 1,471,000 (255,000 ) 1,216,000 Patents 7 - 13 2,467,000 (1,344,000 ) 1,123,000 Favorable contract interest 5 388,000 (186,000 ) 202,000 Covenant not to compete 4 208,000 (81,000 ) 127,000 8,602,000 (2,508,000 ) 6,094,000 Unamortized: Customer list 104,000 - 104,000 Trademark and Tradename 61,000 - 61,000 165,000 - 165,000 Total $ 8,767,000 $ (2,508,000 ) $ 6,259,000 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 |
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: July - December 2019 $ 495,000 2020 991,000 2021 815,000 2022 710,000 2023 683,000 Thereafter 2,400,000 6,094,000 |
Schedule of Changes in Goodwill | The change in goodwill from January 1, 2019 to June 30, 2019 is as follows: Balance of as January 1, 2019 $ 7,318,000 CarrierWeb acquisition 1,055,000 Balance as of June 30, 2019 $ 8,373,000 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock Options Activity | The following table summarizes the activity relating to the Company’s stock options for the six-month period ended June 30, 2019: Weighted- Weighted- Average Average Remaining Aggregate Exercise Contractual Intrinsic Options Price Term Value Outstanding at beginning of year 1,220,000 $ 5.37 Granted 869,000 6.20 Exercised (50,000 ) 3.54 Forfeited or expired (1,000 ) 3.29 Outstanding at end of period 2,038,000 $ 5.77 8 years $ 610,000 Exercisable at end of period 1,254,000 $ 5.68 7 years $ 8,000 |
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: June 30, 2018 2019 Expected volatility 43.0 % 24.2 % Expected life of options (in years) 4 3 Risk free interest rate 2.73 % 1.41 % Dividend yield 0 % 0 % Weighted average fair value of options granted during the period $ 2.37 $ 2.72 |
Schedule of Non-vested Restricted Stock Activity | A summary of all non-vested restricted stock for the six-month period ended June 30, 2019 is as follows: Weighted- Number of Average Non-vested Grant Date Shares Fair Value Restricted stock, non-vested, beginning of year 568,000 $ 6.65 Granted 245,000 5.74 Vested (199,000 ) 6.62 Forfeited - - Restricted stock, non-vested, end of period 614,000 $ 6.30 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 for the six-month period ended June 30, 2019 are as follows: Unrealized Accumulated Foreign gain (losses) other currency on comprehensive items investments loss Balance at January 1, 2019 $ (388,000 ) $ (47,000 ) $ (435,000 ) Net current period change (58,000 ) 47,000 (11,000 ) Balance at June 30, 2019 $ (446,000 ) $ - $ (446,000 ) The accumulated balances for each classification of other comprehensive loss for the six-month period ended June 30, 2018 are as follows: Unrealized Accumulated Foreign gain (losses) other currency on comprehensive items investments loss Balance at January 1, 2018 $ (465,000 ) $ (113,000 ) $ (578,000 ) Net current period change 52,000 (72,000 ) (20,000 ) Balance at June 30, 2018 $ (413,000 ) $ (185,000 ) $ (598,000 ) |
Net Loss Per Share of Common _2
Net Loss Per Share of Common Stock (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Net Loss Per Share Basic and Diluted | Net loss per share for the three- and six-month periods ended June 30, 2018 and 2019 are as follows: Three Months Ended Six Months Ended June 30, June 30, 2018 2019 2018 2019 Basic and diluted loss per share Net loss $ (1,116,000 ) $ (2,585,000 ) $ (2,106,000 ) $ (4,779,000 ) Weighted-average shares outstanding 17,066,000 17,678,000 17,024,000 17,650,000 Basic and diluted net loss per share $ (0.07 ) $ (0.15 ) $ (0.12 ) $ (0.27 ) |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Expenses (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | Accounts payable and accrued expenses consist of the following: December 31, 2018 June 30, 2019 (Unaudited) Accounts payable $ 6,644,000 $ 10,631,000 Accrued warranty 422,000 335,000 Accrued compensation 870,000 451,000 Other current liabilities 91,000 188,000 $ 8,027,000 $ 11,605,000 |
Schedule of Product Warranty Liability | The following table summarizes warranty activity for the six-month periods ended June 30, 2018 and 2019: Six Months Ended June 30, 2018 2019 Accrued warranty reserve, beginning of period $ 535,000 $ 422,000 Accrual for product warranties issued 67,000 152,000 Product replacements and other warranty expenditures (75,000 ) (139,000 ) Expiration of warranties (78,000 ) (100,000 ) Accrued warranty reserve, end of period $ 449,000 $ 335,000 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Schedule of Lease Expense | Components of lease expense are as follows: Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Operating lease cost $ 210,000 $ 389,000 Short term lease cost 100,000 144,000 $ 310,000 $ 533,000 |
Schedule of Cash Flow Information and Non-cash Activity of Operating Leases | Supplemental cash flow information and non-cash activity related to our operating leases are as follows: Six Months Ended Operating cash flow information: Cash paid for amounts included in the measurement of lease liabilities $ 384,000 Non-cash activity: Right-of-use assets obtained in exchange for lease obligations $ 2,556,000 |
Schedule of Weighted Average Remaining Lease Term and Discount Rate | Weighted-average remaining lease term and discount rate for our operating leases are as follows: June 30, 2019 Weighted-average remaining lease term (in years) 3.8 Weighted-average discount rate 7.5 % |
Scheduled Maturities of Operating Lease Liabilities | Scheduled maturities of operating lease liabilities outstanding as of June 30, 2019 are as follows: Year ending December 31, July - December 2019 $ 481,000 2020 971,000 2021 302,000 2022 172,000 2023 177,000 Thereafter 416,000 Total lease payments 2,519,000 Less: Imputed interest (347,000 ) Present value of lease liabilities $ 2,172,000 |
Wholly Owned Foreign Subsidia_2
Wholly Owned Foreign Subsidiaries (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
I.D. Systems GmbH [Member] | |
Schedule of Financial Statements of Foreign Subsidiary | The net revenue and net loss for IDS GmbH included in the Condensed Consolidated Statement of Operations are as follows: For the Three Months Ended For the Six Months Ended June 30, June 30, 2018 2019 2018 2019 Net revenue $ 328,000 $ 750,000 $ 522,000 $ 1,221,000 Net income (loss) (186,000 ) 126,000 (230,000 ) 69,000 |
I.D. Systems Ltd [Member] | |
Schedule of Financial Statements of Foreign Subsidiary | The net revenue and net loss for IDS Ltd included in the Condensed Consolidated Statement of Operations are as follows: For the Three Months Ended For the Six Months Ended June 30, June 30, 2018 2019 2018 2019 Net revenue $ 35,000 $ 49,000 $ 132,000 $ 229,000 Net (loss) income (176,000 ) (72,000 ) (130,000 ) 29,000 |
Description of the Company an_2
Description of the Company and Basis of Presentation (Details Narrative) - USD ($) | Mar. 13, 2019 | Jun. 30, 2019 |
Cash, cash equivalents and marketable securities | $ 8,400,000 | |
Working capital | $ 12,100,000 | |
Pointer Holdco [Member] | Senior Secured Term Loan Facilities [Member] | ||
Term loan facilities | $ 30,000,000 | |
Senior secured term loan, term | 5 years | |
Pointer Holdco [Member] | Revolving Credit Facility [Member] | ||
Term loan facilities | $ 10,000,000 | |
Senior secured term loan, term | 5 years | |
Pointer Holdco [Member] | Pointer Merger Agreement [Member] | ||
Cash consideration on merger | $ 8.50 | |
Number of shares exchanged for merger | 1.272 |
Investments (Details Narrative)
Investments (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Unrealized (loss) gain on investments | $ (22,000) | $ 9,000 | $ (115,000) |
Investments - Schedule of Avail
Investments - Schedule of Available for Sale Securities Reconciliation (Details) | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Debt Securities, Available-for-sale [Line Items] | |
Cost | $ 4,572,000 |
Unrealized Gain | 1,000 |
Unrealized Loss | (48,000) |
Fair Value | 4,525,000 |
Short-term Investments [Member] | |
Debt Securities, Available-for-sale [Line Items] | |
Cost | 393,000 |
Unrealized Gain | 1,000 |
Unrealized Loss | |
Fair Value | 394,000 |
Short-term Investments [Member] | U.S. Treasury Notes [Member] | |
Debt Securities, Available-for-sale [Line Items] | |
Cost | 302,000 |
Unrealized Gain | 1,000 |
Unrealized Loss | |
Fair Value | 303,000 |
Short-term Investments [Member] | Corporate Bonds and Commercial Paper [Member] | |
Debt Securities, Available-for-sale [Line Items] | |
Cost | 91,000 |
Unrealized Gain | |
Unrealized Loss | |
Fair Value | 91,000 |
Long-term Investments [Member] | |
Debt Securities, Available-for-sale [Line Items] | |
Cost | 4,179,000 |
Unrealized Gain | |
Unrealized Loss | (48,000) |
Fair Value | 4,131,000 |
Long-term Investments [Member] | U.S. Treasury Notes [Member] | |
Debt Securities, Available-for-sale [Line Items] | |
Cost | 1,569,000 |
Unrealized Gain | |
Unrealized Loss | (2,000) |
Fair Value | 1,567,000 |
Long-term Investments [Member] | Government Agency Bonds [Member] | |
Debt Securities, Available-for-sale [Line Items] | |
Cost | 1,548,000 |
Unrealized Gain | |
Unrealized Loss | (23,000) |
Fair Value | 1,525,000 |
Long-term Investments [Member] | Corporate Bonds [Member] | |
Debt Securities, Available-for-sale [Line Items] | |
Cost | 1,062,000 |
Unrealized Gain | |
Unrealized Loss | (23,000) |
Fair Value | $ 1,039,000 |
Revenue Recognition (Details Na
Revenue Recognition (Details Narrative) | Dec. 03, 2018USD ($)Unit | Mar. 18, 2017USD ($)Unit | Jun. 30, 2019USD ($) | Jun. 30, 2019USD ($) |
Development project revenue | $ 1,048,000 | $ 2,846,000 | ||
Avis Budget Car Rental LLC [Member] | ||||
Number of cellular-enabled rental fleet car management system | Unit | 50,000 | |||
Period of installation of equipment | 60 months | |||
Equipment for consideration | $ 21,270,000 | |||
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 installation of equipment | 60 months | |||
Equipment for consideration | $ 33,000,000 | |||
Avis Budget Car Rental LLC [Member] | Statement of Work #5 [Member] | ||||
Equipment for consideration | $ 1,000,000 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Revenue Disaggregated by Revenue Sources (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Total Revenue | $ 16,274,000 | $ 14,809,000 | $ 29,885,000 | $ 28,188,000 |
Products [Member] | ||||
Total Revenue | 10,643,000 | 10,784,000 | 17,892,000 | 20,682,000 |
Services [Member] | ||||
Total Revenue | 5,631,000 | 4,025,000 | 11,993,000 | 7,506,000 |
Industrial Truck Management [Member] | ||||
Total Revenue | 7,273,000 | 6,380,000 | 14,672,000 | 14,000,000 |
Industrial Truck Management [Member] | Products [Member] | ||||
Total Revenue | 5,423,000 | 4,518,000 | 11,008,000 | 10,694,000 |
Industrial Truck Management [Member] | Services [Member] | ||||
Total Revenue | 1,850,000 | 1,862,000 | 3,664,000 | 3,306,000 |
Connected Vehicles [Member] | ||||
Total Revenue | 4,690,000 | 4,957,000 | 7,018,000 | 7,246,000 |
Connected Vehicles [Member] | Products [Member] | ||||
Total Revenue | 3,121,000 | 4,773,000 | 3,121,000 | 7,029,000 |
Connected Vehicles [Member] | Services [Member] | ||||
Total Revenue | 1,569,000 | 184,000 | 3,897,000 | 217,000 |
Logistics Visibility Solutions [Member] | ||||
Total Revenue | 4,311,000 | 3,472,000 | 8,195,000 | 6,942,000 |
Logistics Visibility Solutions [Member] | Products [Member] | ||||
Total Revenue | 2,099,000 | 1,493,000 | 3,763,000 | 2,959,000 |
Logistics Visibility Solutions [Member] | Services [Member] | ||||
Total Revenue | $ 2,212,000 | $ 1,979,000 | $ 4,432,000 | $ 3,983,000 |
Revenue Recognition - Schedul_2
Revenue Recognition - Schedule of Deferred Revenue (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 | |
Deferred costs | $ 3,800,000 | $ 3,660,000 | |
Deferred revenue | 17,782,000 | 17,088,000 | |
Less: Current portion | 8,366,000 | 7,902,000 | |
Deferred revenue - less current portion | 9,416,000 | 9,186,000 | |
Deferred Sales Commissions to Employees [Member] | |||
Deferred costs | 656,000 | 585,000 | |
Deferred Revenue - Other [Member] | |||
Deferred revenue | [1] | 311,000 | 305,000 |
Deferred Maintenance and SaaS Revenue [Member] | |||
Deferred revenue | [1] | 4,901,000 | 4,607,000 |
Deferred Logistics Visibility Solutions Product Revenue [Member] | |||
Deferred revenue | [1] | $ 12,570,000 | $ 12,176,000 |
[1] | We record deferred revenues when cash payments are received or due in advance of our performance. For the three- and six-month periods ended June 30, 2018 and 2019, the Company recognized revenue of $2,643,000 and $6,891,000, respectively, and $3,738,000 and $6,238,000, respectively, that was included in the deferred revenue balance at the beginning of each reporting period. The Company expects to recognize deferred revenue as revenue before year 2024, when it transfers those goods and services and, therefore, satisfies its performance obligation to the customers. We do not separately account for activation fees since no good or service is transferred to the customer. Therefore, the activation fee is included in the transaction price and allocated to the performance obligations in the contract and deferred/amortized over the life of the contract. |
Revenue Recognition - Schedul_3
Revenue Recognition - Schedule of Deferred Revenue (Details) (Parenthetical) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | ||||
Revenue recognized | $ 6,891,000 | $ 2,643,000 | $ 6,238,000 | $ 3,738,000 |
Financing Receivables (Details
Financing Receivables (Details Narrative) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Unearned interest income on sales type leases | $ 93,000 | $ 114,000 |
Weighted-average discount rate | 3.00% | 3.00% |
Minimum [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Investment lease receivable term | 3 years | 3 years |
Maximum [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Investment lease receivable term | 5 years | 5 years |
Financing Receivables - Schedul
Financing Receivables - Scheduled Maturities of Sales-type Lease Minimum Lease Payments (Details) | Jun. 30, 2019USD ($) |
Receivables [Abstract] | |
July - December 2019 | $ 505,000 |
2020 | 850,000 |
2021 | 445,000 |
2022 | 188,000 |
2023 | 74,000 |
Thereafter | 11,000 |
Sales-type Lease Receivable, Future Minimum Payments | 2,073,000 |
Less: Current portion | 782,000 |
Sales-type Lease Receivable - Less current portion | $ 1,291,000 |
Inventory (Details Narrative)
Inventory (Details Narrative) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Inventory valuation reserves | $ 166,000 | $ 119,000 |
Inventory - Schedule of Invento
Inventory - Schedule of Inventories (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Components | $ 1,145,000 | $ 2,218,000 |
Finished goods, net | 5,841,000 | 2,431,000 |
Inventory, Net | $ 6,986,000 | $ 4,649,000 |
Fixed Assets (Details Narrative
Fixed Assets (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation and amortization expense | $ 190,000 | $ 211,000 | $ 379,000 | $ 426,000 |
Amortization expense | $ 133,000 | $ 131,000 | 266,000 | 262,000 |
Software development and website development projects costs | $ 0 | $ 5,000 |
Fixed Assets - Schedule of Fixe
Fixed Assets - Schedule of Fixed Assets (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 10,157,000 | $ 10,118,000 |
Accumulated depreciation and amortization | (7,991,000) | (7,679,000) |
Property, plant and equipment, net | 2,166,000 | 2,149,000 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,185,000 | 1,114,000 |
Computer Software and Web Application Development [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 5,636,000 | 5,633,000 |
Computer Hardware [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 2,534,000 | 2,664,000 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 504,000 | 466,000 |
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 | $ 238,000 | $ 181,000 |
Acquisition (Details Narrative)
Acquisition (Details Narrative) - USD ($) | Jan. 30, 2019 | Aug. 01, 2018 | Apr. 30, 2019 | Jul. 31, 2017 | Sep. 14, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2019 | Jun. 30, 2018 |
Acquisition-related expenses | $ 1,613,000 | $ 149,000 | $ 3,062,000 | $ 328,000 | ||||||
Post-closing working capital adjustment | $ 275,000 | |||||||||
Asset Purchase Agreement [Member] | ||||||||||
Number of common stock issued | 147,951 | 296,000 | ||||||||
CarrierWeb Acquisition [Member] | ||||||||||
Consideration paid | $ 3,500,000 | $ 700,000 | ||||||||
Closing cash payment | 2,800,000 | |||||||||
Principal and interest outstanding | 650,000 | |||||||||
Purchase price included in other assets | $ 300,000 | |||||||||
Acquisition-related expenses | 30,000 | 160,000 | ||||||||
Acquisition contributed to revenue | $ 1,348,000 | $ 1,976,000 | ||||||||
Keytroller Acquisition [Member] | Asset Purchase Agreement [Member] | ||||||||||
Consideration paid | $ 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 Purch
Acquisition - Schedule of Purchase Price Allocation on Net Assets Acquired (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 | |
Goodwill | $ 8,373,000 | $ 7,318,000 | |
Keytroller Acquisition [Member] | |||
Accounts receivable | 192,000 | ||
Inventory | 200,000 | ||
Other assets | 26,000 | ||
Customer relationships | 945,000 | ||
Trademark and tradename | 104,000 | ||
Patents | 978,000 | ||
Goodwill | [1] | 1,055,000 | |
Net assets acquired | $ 3,500,000 | ||
[1] | The goodwill is fully deductible for tax purposes. |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 280,000 | $ 178,000 | $ 473,000 | $ 356,000 |
Intangible Assets and Goodwil_3
Intangible Assets and Goodwill - Schedule of Intangible Assets (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross Carrying Amount | $ 8,602,000 | $ 6,575,000 |
Finite-Lived Intangible Assets, Accumulated Amortization | (2,508,000) | (2,035,000) |
Finite-Lived Intangible Assets, Net Carrying Amount | 6,094,000 | 4,540,000 |
Indefinite-Lived Intangible Assets (Excluding Goodwill), Gross | 165,000 | 165,000 |
Indefinite-Lived Intangible Assets (Excluding Goodwill) | 165,000 | 165,000 |
Intangible Assets Gross | 8,767,000 | 6,740,000 |
Intangible Assets, Accumulated Amortization | (2,508,000) | (2,305,000) |
Total | 6,259,000 | 4,705,000 |
Trademark and Tradename [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross Carrying Amount | 1,471,000 | 1,367,000 |
Finite-Lived Intangible Assets, Accumulated Amortization | (255,000) | (178,000) |
Finite-Lived Intangible Assets, Net Carrying Amount | 1,216,000 | 1,189,000 |
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) | 3 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 | |
Finite-Lived Intangible Assets, Gross Carrying Amount | 4,068,000 | $ 3,123,000 |
Finite-Lived Intangible Assets, Accumulated Amortization | (642,000) | (442,000) |
Finite-Lived Intangible Assets, Net Carrying Amount | $ 3,426,000 | $ 2,681,000 |
Customer Relationships [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Lives (In Years) | 9 years | |
Customer Relationships [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Lives (In Years) | 10 years | |
Patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Lives (In Years) | 11 years | |
Finite-Lived Intangible Assets, Gross Carrying Amount | $ 2,467,000 | $ 1,489,000 |
Finite-Lived Intangible Assets, Accumulated Amortization | (1,344,000) | (1,218,000) |
Finite-Lived Intangible Assets, Net Carrying Amount | $ 1,123,000 | $ 271,000 |
Patents [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Lives (In Years) | 7 years | |
Patents [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Lives (In Years) | 13 years | |
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 | (186,000) | (137,000) |
Finite-Lived Intangible Assets, Net Carrying Amount | $ 202,000 | $ 251,000 |
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 | (81,000) | (60,000) |
Finite-Lived Intangible Assets, Net Carrying Amount | $ 127,000 | $ 148,000 |
Intangible Assets and Goodwil_4
Intangible Assets and Goodwill - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
July - December 2019 | $ 495,000 | |
2020 | 991,000 | |
2021 | 815,000 | |
2022 | 710,000 | |
2023 | 683,000 | |
Thereafter | 2,400,000 | |
Finite-Lived Intangible Assets, Net, Total | $ 6,094,000 | $ 4,540,000 |
Intangible Assets and Goodwil_5
Intangible Assets and Goodwill - Schedule of Changes in Goodwill (Details) | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Balance, beginning | $ 7,318,000 |
CarrierWeb acquisition | 1,055,000 |
Balance, ending | $ 8,373,000 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details Narrative) - USD ($) | Mar. 13, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Allocated share-based compensation expense | $ 161,000 | $ 95,000 | $ 297,000 | $ 195,000 | ||
Share-based compensation, fair value of options vested | 271,000 | 239,000 | ||||
Share-based compensation, intrinsic value of options exercised | 112,000 | 65,000 | ||||
Share-based compensation, nonvested awards, not yet recognized | 1,548,000 | $ 1,548,000 | ||||
Share-based compensation, nonvested awards, not yet recognized, period for recognition | 2 years 10 months 28 days | |||||
Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Allocated share-based compensation expense | 440,000 | $ 500,000 | $ 887,000 | $ 931,000 | ||
Share-based compensation, nonvested awards, not yet recognized | $ 3,304,000 | $ 3,304,000 | ||||
Share-based compensation, nonvested awards, not yet recognized, period for recognition | 2 years 4 months 13 days | |||||
Chief Executive Officer [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of options granted to purchase shares of common stock | 350,000 | |||||
Chief Financial Officer [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of options granted to purchase shares of common stock | 150,000 | |||||
Chris Wolfe and Ned Mavrommatis [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of options granted to purchase shares of common stock | 500,000 | |||||
Options exercise price per share | $ 6 | |||||
Option vested term, description | Vest upon the attainment of adjusted EBITDA targets for the fiscal years ending December 31, 2020 and December 31, 2021 and become exercisable 180 days after vesting. | |||||
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 | 1,500,000 | 1,500,000 | |||
Option vested term | 10 years | |||||
Shares available for future issuance | 92,000 | 92,000 | ||||
Options exercise price per share | $ 6.28 | |||||
2018 Incentive Plan [Member] | Minimum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Option vested term | 4 years | |||||
2018 Incentive Plan [Member] | Maximum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Option vested term | 5 years |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Stock Options Activity (Details) - Employee Stock Option [Member] | 6 Months Ended |
Jun. 30, 2019USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options, Outstanding at Beginning of Year | shares | 1,220,000 |
Options, Granted | shares | 869,000 |
Options, Exercised | shares | (50,000) |
Options, Forfeited or Expired | shares | (1,000) |
Options, Outstanding at End of Year | shares | 2,038,000 |
Options, Exercisable at End of Year | shares | 1,254,000 |
Weighted-average Exercise Price, Outstanding at Beginning of Year | $ / shares | $ 5.37 |
Weighted-average Exercise Price, Granted | $ / shares | 6.20 |
Weighted-average Exercise Price, Exercised | $ / shares | 3.54 |
Weighted-average Exercise Price, Forfeited or Expired | $ / shares | 3.29 |
Weighted-average Exercise Price, Outstanding at End of Year | $ / shares | 5.77 |
Weighted-average Exercise Price, Exercisable at End of Year | $ / shares | $ 5.68 |
Weighted-Average Remaining Contractual Term | 8 years |
Weighted-Average Remaining Contractual Term, Exercisable | 7 years |
Aggregate Intrinsic Value, Ending | $ | $ 610,000 |
Aggregate Intrinsic Value, Exercisable | $ | $ 8,000 |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of Fair Value Stock Option Assumptions (Details) - $ / shares | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | |
Share-based Payment Arrangement [Abstract] | |||
Expected volatility | 24.20% | 43.00% | |
Expected life of options (in years) | 3 years | 4 years | |
Risk free interest rate | 1.41% | 2.73% | |
Dividend yield | 0.00% | 0.00% | |
Weighted average fair value of options granted during the period | $ 2.72 | $ 2.37 |
Stock-Based Compensation - Sc_3
Stock-Based Compensation - Schedule of Non-vested Restricted Stock Activity (Details) - Restricted Stock [Member] | 6 Months Ended |
Jun. 30, 2019$ / sharesshares | |
Number of Non-vested Shares, Beginning of Year | shares | 568,000 |
Number of Non-vested Shares, Granted | shares | 245,000 |
Number of Non-vested Shares, Vested | shares | (199,000) |
Number of Non-vested Shares, Forfeited | shares | |
Number of Non-vested Shares, End of Period | shares | 614,000 |
Weighted- Average Grant Date Fair Value, Non-vested, Beginning of Year | $ / shares | $ 6.65 |
Weighted- Average Grant Date Fair Value, Granted | $ / shares | 5.74 |
Weighted- Average Grant Date Fair Value, Vested | $ / shares | 6.62 |
Weighted- Average Grant Date Fair Value, Forfeited | $ / shares | |
Weighted- Average Grant Date Fair Value, Non-vested, End of Period | $ / shares | $ 6.30 |
Stockholders' Equity (Details N
Stockholders' Equity (Details Narrative) - USD ($) | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Nov. 03, 2010 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | ||
Preferred stock, par value | $ 0.01 | $ 0.01 | ||
Number of shares repurchased | 36,000 | 92,000 | ||
Value of shares withheld pursuant to stock issuance | $ 245,000 | $ 694,000 | ||
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 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||
Other comprehensive gain (loss) foreign currency translation adjustment | $ (46,000) | $ (12,000) | $ 189,000 | $ (137,000) | $ (58,000) | $ 52,000 |
Foreign currency transaction gains (losses) | $ (4,000) | $ (277,000) | $ (30,000) | $ (96,000) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Schedule of Accumulated Other Comprehensive Loss (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||
Foreign currency items, Balance at Beginning | $ (465,000) | $ (388,000) | $ (465,000) | ||
Foreign currency items, Net current period change | (58,000) | 52,000 | |||
Foreign currency items, Balance at End | $ (446,000) | $ (413,000) | (446,000) | (413,000) | |
Unrealized gain (losses) on investments, Balance at Beginning | (113,000) | (47,000) | (113,000) | ||
Unrealized gain (losses) on investments, Net current period change | (12,000) | (60,000) | 47,000 | (72,000) | |
Unrealized gain (losses) on investments, Balance at End | (185,000) | (185,000) | |||
Accumulated other comprehensive income, Balance at Beginning | $ (578,000) | (435,000) | (578,000) | ||
Accumulated other comprehensive income, Net current period change | (46,000) | 177,000 | (11,000) | (20,000) | |
Accumulated other comprehensive income, Balance at End | $ (446,000) | $ (598,000) | $ (446,000) | $ (598,000) |
Net Loss Per Share of Common _3
Net Loss Per Share of Common Stock (Details Narrative) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Antidilutive securities excluded from computation of earnings per share, amount | 2,652,000 | 1,871,000 | 2,652,000 | 1,871,000 |
Net Loss Per Share of Common _4
Net Loss Per Share of Common Stock - Schedule of Net Loss Per Share Basic and Diluted (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings Per Share [Abstract] | ||||||
Net loss | $ (2,585,000) | $ (2,194,000) | $ (1,116,000) | $ (990,000) | $ (4,779,000) | $ (2,106,000) |
Weighted-average common shares outstanding - basic and diluted | 17,678,000 | 17,066,000 | 17,650,000 | 17,024,000 | ||
Basic and diluted net loss per share | $ (0.15) | $ (0.07) | $ (0.27) | $ (0.12) |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Expenses (Details Narrative) | 6 Months Ended |
Jun. 30, 2019 | |
Payables and Accruals [Abstract] | |
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 ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | ||
Accounts payable | $ 10,631,000 | $ 6,644,000 |
Accrued warranty | 335,000 | 422,000 |
Accrued compensation | 451,000 | 870,000 |
Other current liabilities | 188,000 | 91,000 |
Accounts payable and accrued expenses | $ 11,605,000 | $ 8,027,000 |
Accounts Payable and Accrued _5
Accounts Payable and Accrued Expenses - Schedule of Product Warranty Liability (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Payables and Accruals [Abstract] | ||
Accrued warranty reserve, beginning of year | $ 422,000 | $ 535,000 |
Accrual for product warranties issued | 152,000 | 67,000 |
Product replacements and other warranty expenditures | (139,000) | (75,000) |
Expiration of warranties | (100,000) | (78,000) |
Accrued warranty reserve, end of period | $ 335,000 | $ 449,000 |
Leases - Schedule of Lease Expe
Leases - Schedule of Lease Expense (Details) - USD ($) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 210,000 | $ 389,000 |
Short term lease cost | 100,000 | 144,000 |
Lease expense | $ 310,000 | $ 533,000 |
Leases - Schedule of Cash Flow
Leases - Schedule of Cash Flow Information and Non-cash Activity of Operating Leases (Details) | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Leases [Abstract] | |
Cash paid for amounts included in the measurement of lease liabilities | $ 384,000 |
Right-of-use assets obtained in exchange for lease obligations | $ 2,556,000 |
Leases - Schedule of Weighted A
Leases - Schedule of Weighted Average Remaining Lease Term and Discount Rate (Details) | Jun. 30, 2019 |
Leases [Abstract] | |
Weighted-average remaining lease term (in years) | 3 years 9 months 18 days |
Weighted-average discount rate | 7.50% |
Leases - Scheduled Maturities o
Leases - Scheduled Maturities of Operating Lease Liabilities (Details) | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
July - December 2019 | $ 481,000 |
2020 | 971,000 |
2021 | 302,000 |
2022 | 172,000 |
2023 | 177,000 |
Thereafter | 416,000 |
Total lease payments | 2,519,000 |
Less: Imputed interest | (347,000) |
Present value of lease liabilities | $ 2,172,000 |
Concentration of Customers (Det
Concentration of Customers (Details Narrative) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
One Customer [Member] | Revenue [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 23.00% | |
One Customer [Member] | Accounts Receivables [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 32.00% | |
One Customer [Member] | Finance Receivables [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 18.00% | |
Customer One [Member] | Accounts Receivables [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 34.00% | |
Customer One [Member] | Finance Receivables [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 22.00% | |
Customer One [Member] | Sales Revenue, Net [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 26.00% | |
Customer Two [Member] | Accounts Receivables [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 10.00% | |
Customer Two [Member] | Finance Receivables [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 20.00% | |
Customer Two [Member] | Sales Revenue, Net [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 11.00% | |
Customer Three [Member] | Sales Revenue, Net [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 11.00% |
Wholly Owned Foreign Subsidia_3
Wholly Owned Foreign Subsidiaries (Details Narrative) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Foreign Subsidiaries Financial Information Disclosure [Line Items] | ||
Total assets | $ 60,412,000 | $ 57,803,000 |
I.D. Systems GmbH [Member] | ||
Foreign Subsidiaries Financial Information Disclosure [Line Items] | ||
Total assets | 2,251,000 | 1,430,000 |
I.D. Systems Ltd [Member] | ||
Foreign Subsidiaries Financial Information Disclosure [Line Items] | ||
Total assets | $ 1,106,000 | $ 1,054,000 |
Wholly Owned Foreign Subsidia_4
Wholly Owned Foreign Subsidiaries - Schedule of Financial Statements of Foreign Subsidiary (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Foreign Subsidiaries Financial Information Disclosure [Line Items] | ||||||
Net revenue | $ 16,274,000 | $ 14,809,000 | $ 29,885,000 | $ 28,188,000 | ||
Net income (loss) | (2,585,000) | $ (2,194,000) | (1,116,000) | $ (990,000) | (4,779,000) | (2,106,000) |
I.D. Systems GmbH [Member] | ||||||
Foreign Subsidiaries Financial Information Disclosure [Line Items] | ||||||
Net revenue | 750,000 | 328,000 | 1,221,000 | 522,000 | ||
Net income (loss) | 126,000 | (186,000) | 69,000 | (230,000) | ||
I.D. Systems Ltd [Member] | ||||||
Foreign Subsidiaries Financial Information Disclosure [Line Items] | ||||||
Net revenue | 49,000 | 35,000 | 229,000 | 132,000 | ||
Net income (loss) | $ (72,000) | $ (176,000) | $ 29,000 | $ (130,000) |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - Subsequent Event [Member] - CarrierWeb Services Ltd. [Member] | Jul. 30, 2019USD ($)shares |
Payment made in cash | $ | $ 500,000 |
Stock issued during period for common stock acquisition | 126,748 |
Stock issued during the period for repayment of loans | 55,783 |
Stock issued during the period for repayment of loans, value | $ | $ 300,000 |
Number of shares held back | 43,706 |