Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Mar. 11, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Entity Registrant Name | ACORN ENERGY, INC. | ||
Entity Central Index Key | 0000880984 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2020 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filer | No | ||
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 Shell Company | false | ||
Entity Public Float | $ 6,400 | ||
Entity Common Stock, Shares Outstanding | 39,687,589 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2020 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash | $ 2,063 | $ 1,247 |
Accounts receivable, net | 608 | 962 |
Inventory, net | 236 | 291 |
Other current assets | 126 | 189 |
Deferred charges | 764 | 741 |
Total current assets | 3,797 | 3,430 |
Property and equipment, net | 268 | 189 |
Right-of-use assets, net | 494 | 587 |
Other assets | 642 | 778 |
Total assets | 5,201 | 4,984 |
Current liabilities: | ||
Short-term bank credit | 149 | 136 |
Accounts payable | 229 | 197 |
Accrued expenses | 168 | 136 |
Deferred revenue | 3,214 | 3,004 |
Current operating lease liabilities | 99 | 53 |
Other current liabilities | 33 | 68 |
Total current liabilities | 3,892 | 3,594 |
Long-term liabilities: | ||
Deferred revenue | 1,340 | 1,491 |
Noncurrent operating lease liabilities | 443 | 542 |
Other long-term liabilities | 45 | 2 |
Total long-term liabilities | 1,828 | 2,035 |
Commitments and contingencies (Note 8) | ||
Deficit: | ||
Acorn Energy, Inc. shareholders Common stock - $0.01 par value per share: Authorized - 42,000,000 shares; Issued - 39,687,589 and 39,591,339 shares at December 31, 2020 and 2019, respectively | 397 | 396 |
Additional paid-in capital | 102,726 | 101,655 |
Warrants | 3 | 1,021 |
Accumulated deficit | (100,613) | (100,682) |
Treasury stock, at cost - 801,920 shares at December 31, 2020 and 2019 | (3,036) | (3,036) |
Total Acorn Energy, Inc. shareholders' deficit | (523) | (646) |
Non-controlling interests | 4 | 1 |
Total deficit | (519) | (645) |
Total liabilities and deficit | $ 5,201 | $ 4,984 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 42,000,000 | 42,000,000 |
Common stock, shares issued | 39,687,589 | 39,591,339 |
Treasury stock, shares | 801,920 | 801,920 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | ||
Revenue | $ 5,922 | $ 5,490 |
Cost of sales | 1,791 | 1,900 |
Gross profit | 4,131 | 3,590 |
Operating expenses: | ||
Research and development expenses | 619 | 559 |
Selling, general and administrative expenses | 3,822 | 3,730 |
Total operating expenses | 4,441 | 4,289 |
Operating loss | (310) | (699) |
Finance expense, net | (35) | 2 |
Gain on SBA PPP loan extinguishment | 421 | |
Income (loss) before income taxes | 76 | (697) |
Income tax expense | ||
Net income (loss) after income taxes | 76 | (697) |
Gain on sale of interest in DSIT, net of transaction costs | 50 | |
Net income (loss) | 76 | (647) |
Non-controlling interest share of (income) loss | (7) | 29 |
Net income (loss) attributable to Acorn Energy, Inc. shareholders. | $ 69 | $ (618) |
Basic and diluted net income (loss) per share attributable to Acorn Energy, Inc. shareholders: | ||
Net income (loss) per share attributable to Acorn Energy, Inc. shareholders - basic and diluted | $ 0 | $ (0.02) |
Weighted average number of shares outstanding attributable to Acorn Energy, Inc. shareholders - basic | 39,674,000 | 35,495,000 |
Weighted average number of shares outstanding attributable to Acorn Energy, Inc. shareholders - diluted | 39,713,000 | 35,495,000 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Deficit - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-In Capital [Member] | Warrants [Member] | Accumulated Deficit [Member] | Treasury Stock [Member] | Total Acorn Energy, Inc. Shareholders' Deficit [Member] | Non-Controlling Interests [Member] | Total | |
Balances at Dec. 31, 2018 | $ 296 | $ 100,348 | $ 1,118 | $ (100,064) | $ (3,036) | $ (1,338) | $ 108 | $ (1,230) | |
Balances, shares at Dec. 31, 2018 | 29,556,000 | 802,000 | |||||||
Net income (loss) | (618) | (618) | (29) | (647) | |||||
Purchase of non-controlling interest | (914) | (914) | (36) | (950) | |||||
Rights offering, proceeds net of expenses | $ 100 | 2,084 | 2,184 | 2,184 | |||||
Rights offering, proceeds net of expenses, shares | 9,975,000 | ||||||||
Shares issued in lieu of professional fees | [1] | 18 | 18 | $ 18 | |||||
Shares issued in lieu of professional fees, shares | 60,000 | ||||||||
Proceeds from stock option exercise, shares | |||||||||
Accrued dividend in OmniMetrix preferred shares | (42) | $ (42) | |||||||
Value of expired warrants | 97 | (97) | |||||||
Stock option compensation | 22 | 22 | 22 | ||||||
Balances at Dec. 31, 2019 | $ 396 | 101,655 | 1,021 | (100,682) | $ (3,036) | (646) | 1 | (645) | |
Balances, shares at Dec. 31, 2019 | 39,591,000 | 802,000 | |||||||
Net income (loss) | 69 | 69 | 7 | 76 | |||||
Rights offering, proceeds net of expenses | |||||||||
Proceeds from stock option exercise | $ 1 | 18 | 19 | $ 19 | |||||
Proceeds from stock option exercise, shares | 96,000 | 96,250 | |||||||
Accrued dividend in OmniMetrix preferred shares | (4) | $ (4) | |||||||
Value of expired warrants | 1,018 | (1,018) | |||||||
Stock option compensation | 35 | 35 | 35 | ||||||
Balances at Dec. 31, 2020 | $ 397 | $ 102,726 | $ 3 | $ (100,613) | $ (3,036) | $ (523) | $ 4 | $ (519) | |
Balances, shares at Dec. 31, 2020 | 39,687,000 | 802,000 | |||||||
[1] | * Less than $1 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows provided by (used in) operating activities: | ||
Net income (loss) | $ 76 | $ (647) |
Depreciation and amortization | 22 | 56 |
Non-cash lease expense | 118 | 28 |
Gain on sale of investment in DSIT, net of income taxes and transaction costs | (50) | |
Forgiveness of SBA PPP loan | (421) | |
Stock-based compensation | 35 | 22 |
Professional fees paid in common stock | 18 | |
Change in operating assets and liabilities: | ||
Decrease (increase) in accounts receivable | 354 | (297) |
Decrease (increase) in inventory | 55 | (30) |
Increase in deferred charges, other current assets and other assets | 176 | 24 |
Increase in deferred revenue | 59 | 434 |
Decrease in amounts due to former directors | (323) | |
Increase in operating lease liability | (78) | (47) |
Increase (decrease) in accounts payable, accrued expenses, other current liabilities and non-current liabilities | 68 | (409) |
Net cash provided by (used in) operating activities | 464 | (1,221) |
Cash flows used in investing activities: | ||
Purchases of software | (93) | (162) |
Payments made for patent filings | (8) | (3) |
Purchase of non-controlling interest in OmniMetrix | (950) | |
Net cash provided by (used in) investing activities | (101) | (1,115) |
Cash flows provided by financing activities: | ||
Short-term credit, net | 13 | 136 |
Proceeds from rights offering, net of expenses of $208 | 2,184 | |
Proceeds from SBA PPP loans, net of repayments | 421 | |
Stock option exercise proceeds | 19 | |
Net cash provided by financing activities | 453 | 2,320 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 816 | (16) |
Cash, cash equivalents and restricted cash at the beginning of the year | 1,247 | 1,263 |
Cash, cash equivalents and restricted cash at the end of the year | 2,063 | 1,247 |
Cash, cash equivalents and restricted cash consist of the following: End of period | ||
Cash and cash equivalents | 2,063 | 1,247 |
Restricted cash | ||
Cash, cash equivalents and restricted cash End of year | 2,063 | 1,247 |
Cash, cash equivalents and restricted cash consist of the following: Beginning of year | ||
Cash and cash equivalents | 1,247 | 973 |
Restricted cash | 290 | |
Cash, cash equivalents and restricted cash Beginning of period | 1,247 | 1,263 |
Cash paid during the year for: | ||
Interest | 30 | 21 |
Income taxes | ||
Non-cash investing and financing activities: | ||
Purchase of equipment under installment agreement | 7 | |
Forgiveness of SBA PPP loan | 421 | |
Right-of-use assets, net of deferred rent | 641 | |
Operating lease liability | 634 | |
Accrued preferred dividends to former Acorn director and former CEO of OmniMetrix (see Note 3) | $ 4 | $ 42 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | Jun. 28, 2019 | Dec. 31, 2019 |
Statement of Cash Flows [Abstract] | ||
Offering costs | $ 210 | $ 208 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | NOTE 1—NATURE OF OPERATIONS (a) Description of Business Acorn Energy, Inc. and its subsidiaries, OMX Holdings, Inc. and OmniMetrix, LLC (collectively, “Acorn” or “the Company”) is a Delaware corporation which is holding company focused on technology-driven solutions for energy infrastructure asset management. The Company provides the following services and products through its OmniMetrix, LLC (“OmniMetrix”) subsidiary: ● Power Generation (“PG”) monitoring. ● Cathodic Protection (“CP”) monitoring. Acorn’s shares are traded on the OTCQB marketplace under the symbol ACFN. See Notes 12 and 13 for segment information and major customers. (b) Liquidity As of December 31, 2020, the Company had approximately $2,063,000 of corporate cash and cash equivalents. At December 31, 2020, we had a negative working capital of approximately $95,000. Our working capital included approximately $2,063,000 of cash and deferred revenue of approximately $3,214,000. Such deferred revenue does not require significant cash outlay for the revenue to be recognized. Net cash increased during the year ended December 31, 2020 by approximately $816,000, of which approximately $464,000 was provided by operating activities, approximately $101,000 was used in investing activities, and approximately $453,000 was provided by financing activities, of which approximately $421,000 was net proceeds from the SBA PPP loan. The Company’s operations may be affected by the ongoing outbreak of the coronavirus disease 2019 (COVID-19) which was declared a pandemic by the World Health Organization in March 2020. The ultimate disruption which may be caused by the outbreak is uncertain; however, it may result in a material adverse impact on the Company’s financial position, operations and cash flows. Possible effects may include, but are not limited to, disruption to the Company’s customers and revenue, absenteeism in the Company’s labor workforce, unavailability of products and supplies used in operations, and a decline in value of assets held by the Company, including inventories, property and equipment, and marketable securities. As of March 11, 2021, the Company had corporate cash of approximately $1,812,000. Such cash plus the cash generated from operations, will provide sufficient liquidity to finance the operating activities of Acorn and OmniMetrix at their current level of operations for the foreseeable future and for the twelve months from the issuance of these consolidated financial statements in particular. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 2—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Principles of Consolidation and Presentation The consolidated financial statements include the accounts of the Company and its subsidiaries. In these consolidated financial statements, “subsidiaries” are companies that are over 50% controlled, the accounts of which are consolidated with those of the Company. Significant intercompany transactions and balances are eliminated in consolidation; profits from intercompany sales are also eliminated; non-controlling interests are included in equity. Reclassification Certain reclassifications have been made to the Company’s consolidated financial statements for the year ended December 31, 2019 to conform to the current period’s consolidated financial statement presentation. There was no effect on total assets, equity and net loss. A reclassification of approximately $6,000 from finance expense to SG&A expense was recorded to reclass the Intuit processing fees for customer payments made through the Intuit portal via credit card or bank draft that was previously included in finance expense and is included in SG&A as of December 31, 2019. Use of Estimates in Preparation of Financial Statements The preparation of consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting periods. As applicable to these consolidated financial statements, the most significant estimates and assumptions relate to uncertainties with respect to income taxes, inventories, account receivable allowances, contingencies, revenue recognition, management’s projections and analyses of the possible impairments. Accounts Receivable Accounts receivable consists of trade receivables. Trade receivables are recorded at the invoiced amount. Allowance for Doubtful Accounts The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of customers to make required payments. This allowance is based on specific customer account reviews and historical collections experience. If the financial condition of the Company’s funding parties or customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. The Company performs ongoing credit evaluations of its customers and does not require collateral. During the years ended December 31, 2020 and 2019, approximately $21,000 and $14,000 was charged to expense, respectively. At December 31, 2020 and 2019, the balance in allowance for doubtful accounts was approximately $9,000 and $11,000, respectively. Inventory Inventories are comprised of components (raw materials), work-in-process and finished goods, which are measured at net realizable value. Raw materials inventory is generally comprised of radios, cables, antennas, and electrical components. Finished goods inventory consists of fully assembled systems ready for final shipment to the customer. Costs are determined at cost of acquisition on a weighted average basis and include all outside production and applicable shipping costs. All inventories are periodically reviewed for impairment related to slow-moving and obsolete inventory. Management conducted an assessment and there were no impairment charges for the years ended December 31, 2020 or 2019. Non-Controlling Interests The Financial Accounting Standards Board (“FASB”) requires that non-controlling interests be reported as a component of equity, changes in a parent’s ownership interest while the parent retains its controlling interest be accounted for as equity transactions, and upon a loss of control, retained ownership interest be re-measured at fair value, with any gain or loss recognized in earnings. The Company attributes the applicable percentage of income and losses to the non-controlling interests associated with OmniMetrix (see Note 3). Property and Equipment Property and equipment are presented at cost at the date of acquisition. Depreciation and amortization are calculated based on the straight-line method over the estimated useful lives of the depreciable assets, or in the case of leasehold improvements, the shorter of the lease term or the estimated useful life of the asset, a portion of which is allocated to cost of sales. Improvements are capitalized while repairs and maintenance are charged to operations as incurred. Capitalization of Software In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-15 (“ASU 2018-15”), Intangibles - Goodwill and Other - Internal-Use Software (Topic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. ASU 2018-15 aligns 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. The Company elected to early adopt ASU 2018-15 for the period beginning in the second quarter of 2019, applying the guidance under ASU 2018-15 prospectively. During the years ended December 31, 2020 and 2019, the Company capitalized costs totaling approximately $87,000 and $163,000, respectively, related to such contracts. Leases The Company determines if a contractual arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, current operating lease liabilities, and noncurrent operating lease liabilities on the Company’s consolidated balance sheets. The Company evaluates and classifies leases as operating or finance leases for financial reporting purposes. The classification evaluation begins at the commencement date and the lease term used in the evaluation includes the non-cancellable period for which the Company has the right to use the underlying asset, together with renewal option periods when the exercise of the renewal option is reasonably certain and failure to exercise such option would result in an economic penalty. All the Company’s real estate leases are classified as operating leases. 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 liabilities are recognized at the commencement date of the lease based on the present value of the lease payments over the lease term. The lease payments included in the present value are fixed lease payments. As most of the Company’s leases do not provide an implicit rate, the Company estimates its collateralized incremental borrowing rate, based on information available at the commencement date, in determining the present value of lease payments. The Company applies the portfolio approach in applying discount rates to its classes of leases. The operating lease ROU assets include any payments made before the commencement date. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company does not currently have subleases. The Company does not currently have residual value guarantees or restrictive covenants in its leases. The Company also made accounting policy elections by class of underlying asset to not apply the recognition requirements of the standard to leases with terms of 12 months or less and to not separate non-lease components from lease components. Consequently, each separate lease component and the non-lease components associated with that lease component will be accounted for as a single lease component for lease classification, recognition, and measurement purposes. The lease obligation liability was approximately $542,000 and $595,000 as of December 31, 2020 and December 31, 2019, respectively, which includes the original office space lease, an amendment to this lease entered into in November 2019 that became effective with the period beginning May 1, 2020, and an office equipment lease entered into in April 2019. Treasury Stock Shares of common stock repurchased are recorded at cost as treasury stock. When shares are reissued, the cost method is used for determining cost. In accordance with GAAP, the excess of the acquisition cost over the reissuance price of the treasury stock, if any, is charged to additional paid-in capital, limited to the amount previously credited to additional paid-in capital, if any. Any excess is charged to accumulated deficit. Revenue Recognition The Company’s revenue recognition policy is consistent with applicable revenue recognition guidance and interpretations. The core principle of ASC 606 is to recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. ASC 606 defines a five-step process to achieve this core principle, which includes: (1) identifying contracts with customers, (2) identifying performance obligations within those contracts, (3) determining the transaction price, (4) allocating the transaction price to the performance obligation in the contract, which may include an estimate of variable consideration, and (5) recognizing revenue when or as each performance obligation is satisfied. The Company assesses whether payment terms are customary or extended in accordance with normal practice relative to the market in which the sale is occurring. The Company’s sales arrangements generally include standard payment terms. These terms effectively relate to all customers, products, and arrangements regardless of customer type, product mix or arrangement size. If revenue recognition criteria are not satisfied, amounts received from customers are classified as deferred revenue on the balance sheet until such time as the revenue recognition criteria are met. Sales of OmniMetrix monitoring systems include the sale of equipment (“HW”) and of monitoring services (“Monitoring”). The majority of the sales of OmniMetrix equipment do not qualify as a separate unit of accounting. As a result, revenue (and related costs) associated with sale of equipment are recorded to deferred revenue (and deferred charges) upon shipment for PG and CP monitoring units. Revenue and related costs with respect to the sale of equipment are recognized over the estimated life of the units which are currently estimated to be three years. In the rare instance that a specific sale of OmnMetrix equipment does qualify as a separate unit of accounting (the unit is custom designed and sold without monitoring), the revenue is recognized when the unit is shipped to the customer and not deferred. Revenues from the prepayment of monitoring fees (generally paid twelve months in advance) are initially recorded as deferred revenue upon receipt of payment from the customer and then amortized to revenue over the monitoring service period. See Notes 12 and 13 for the disaggregation of the Company’s revenue for the periods presented. Warranty Provision OmniMetrix generally grants their customers a one-year warranty on their products. Estimated warranty obligations are provided for as a cost of sales in the period in which the related revenues are recognized, based on management’s estimate of future potential warranty obligations and limited historical experience. Adjustments are made to accruals as warranty claim data and historical experience warrant. The Company’s warranty obligations may be materially affected by product or service failure rates and other costs incurred in correcting a product or service failure. Should actual product or service failure rates or other related costs differ from the Company’s estimates, revisions to the accrued warranty liability would be required. Concentration of Credit Risk The Company’s financial instruments, which potentially subject the Company to concentrations of credit risk, consist principally of cash, escrow deposits and trade accounts receivable. The Company’s cash was deposited with a U.S. bank and amounted to approximately $2,063,000 at December 31, 2020. The Company does not believe there is significant risk of non-performance by these counterparties. See Note 12(d) with respect to revenue from significant customers and concentrations of trade accounts receivables. Financial Instruments Fair values of financial instruments included in current assets and current liabilities are estimated to approximate their book values, due to the short maturity of such instruments. Research and Development Expenses Research and development expenses consist primarily of labor and related expenses and are charged to operations as incurred. Advertising Expenses Advertising expenses are charged to operations as incurred. Advertising expense was approximately $15,000 and $17,000 for each of the years ended December 31, 2020 and 2019, respectively, and are included in selling, general and administrative expenses on the consolidated statements of operations. Stock-Based Compensation The Company accounts for stock-based awards to employees in accordance with applicable accounting principles, which requires compensation expense related to share-based transactions, including employee stock options, to be measured and recognized in the consolidated financial statements based on a determination of the fair value of the stock options. The grant date fair value is determined using the Black-Scholes-Merton (“Black-Scholes”) pricing model. For all employee stock options, the Company recognizes expense over the requisite service period on an accelerated basis over the employee’s requisite service period (generally the vesting period of the equity grant). Stock compensation expense is included in selling, general and administrative expenses. The Company’s option pricing model requires the input of highly subjective assumptions, including the expected stock price volatility, expected term, and forfeiture rate. Any changes in these highly subjective assumptions significantly impact stock-based compensation expense. Options awarded to purchase shares of common stock issued to non-employees in exchange for services are accounted for as variable awards in accordance with applicable accounting principles. Such options are valued using the Black-Scholes option pricing model. See Note 9(c) for the assumptions used to calculate the fair value of stock-based employee compensation. Upon the exercise of options, it is the Company’s policy to issue new shares rather than utilizing treasury shares. Deferred Income Taxes Deferred income taxes reflects the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, as well as operating loss, capital loss and tax credit carryforwards. Deferred tax assets and liabilities are classified as non-current in accordance with ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes. Valuation allowances are established against deferred tax assets if it is more likely than not that the assets will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates or laws is recognized in operations in the period that includes the enactment date. See Note 10(e) for the impact of the Tax Cuts and Jobs Act of 2017. Income Tax Uncertainties The calculation of the Company’s tax liabilities involves dealing with uncertainties in the application of complex tax regulations. The Company recognizes liabilities for uncertain tax positions based on the two-step process prescribed by applicable accounting principles. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step requires the Company to estimate and measure the tax benefit as the largest amount that is more likely than not being realized upon ultimate settlement. It is inherently difficult and subjective to estimate such amounts, as this requires the Company to determine the probability of various possible outcomes. The Company reevaluates these uncertain tax positions on a quarterly basis. This evaluation is based on factors including, but not limited to, changes in facts or circumstances, changes in tax law, effectively settled issues under audit, and new audit activity. Such a change in recognition or measurement would result in the recognition of a tax benefit or an additional charge to the tax provision in the period. The Company recognizes interest and penalties as incurred in finance income (expense), net in the consolidated statements of operations. As of December 31, 2020 and 2019, no interest or penalties were accrued on the consolidated balance sheets related to uncertain tax positions. During the years ending December 31, 2020 and 2019, the Company had no changes in unrecognized tax benefits or associated interest and penalties as a result of tax positions made during the current or prior periods with respect to its continuing or discontinued operations. The Company is subject to U.S. Federal and state income tax. As of January 1, 2020, the Company is no longer subject to examination by U.S. Federal taxing authorities for years before 2017, or for years before 2016 for state income taxes. Basic and Diluted Net Income (Loss) Per Share Basic net income (loss) per share is computed by dividing the net income (loss) attributable to Acorn Energy, Inc. by the weighted average number of shares outstanding during the year, excluding treasury stock. Diluted net income (loss) per share is computed by dividing the net income (loss) by the weighted average number of shares outstanding plus the dilutive potential of common shares which would result from the exercise of stock options and warrants. The dilutive effects of stock options and warrants are excluded from the computation of diluted net loss per share if doing so would be antidilutive. The weighted average number of options and warrants that were excluded from the computation of diluted net loss per share, as they had an antidilutive effect, was approximately 409,626 (which have a weighted average exercise price of $0.84) and 3,368,013 for the years ending December 31, 2020 and 2019, respectively. The following data represents the amounts used in computing EPS and the effect on net income and the weighted average number of shares of dilutive potential common stock (in thousands): Year ended December 31, 2020 2019 Net income (loss) available to common stockholders $ 69 $ (618 ) Weighted average shares outstanding: -Basic 39,674 35,495 Add: Warrants 19 — Add: Stock options 20 — -Diluted 39,713 35,495 Basic and diluted net loss per share $ 0.00 $ (0.02 ) Fair Value Measurement The Company follows the provisions of the accounting standard which defines fair value, establishes a framework for measuring fair value and enhances fair value measurement disclosure. Under these provisions, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. The standard establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use on unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is described below: Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. Level 2: Observable prices that are based on inputs not quoted on active markets but corroborated by market data. Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. Recently Issued Accounting Principles Other than the pronouncement noted below, there have been no recent accounting pronouncements or changes in accounting pronouncements during the year ended December 31, 2020, that are of material significance, or have potential material significance, to the Company. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (“ASC 326”), authoritative guidance amending how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The guidance requires the application of a current expected credit loss model, which is a new impairment model based on expected losses. The new guidance is effective for interim and annual reporting periods beginning after December 15, 2022. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements and related disclosures. Recently Adopted Accounting Principles In June 2018, the FASB issued ASU 2018-07, which simplifies the accounting for nonemployee share-based payment transactions. The amendments specify that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. This standard was effective in the first quarter of fiscal year 2020, and the adoption did not have a material impact on the consolidated financial statements. Other recently issued accounting updates are not expected to have a material impact on the Company’s consolidated financial statements. |
Investment in Omnimetrix
Investment in Omnimetrix | 12 Months Ended |
Dec. 31, 2020 | |
Schedule of Investments [Abstract] | |
Investment in Omnimetrix | NOTE 3—INVESTMENT IN OMNIMETRIX In 2015, one of the Company’s then-current directors (the “Investor”) acquired a 20% interest in the Company’s OMX Holdings, Inc. subsidiary (“Holdings”) through the purchase of $1,000,000 of OmniMetrix Preferred Stock (“Preferred Stock”). Holdings is the holder of 100% of the membership interests of OmniMetrix, LLC through which the Company operates its PG and CP monitoring activities. The $1,000,000 investment by the Investor was recorded as an increase in non-controlling interests. On July 1, 2019, in accordance with terms established in 2015 at the time of the original investment, the Company repurchased from the Investor the shares of Preferred Stock then held by the Investor for a purchase price of $1,273,000 in cash (which included $323,000 of unpaid accrued dividends through June 30, 2019). The repurchase raised the Company’s ownership in Holdings from 80% to 99%, with the remaining 1% owned by the former CEO of OmniMetrix, LLC. |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventory | NOTE 4—INVENTORY As of December 31, 2020 2019 (in thousands) Raw materials $ 216 $ 260 Finished goods 20 31 $ 236 $ 291 At December 31, 2020 and 2019, the Company’s inventory reserve was $0. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | NOTE 5—PROPERTY AND EQUIPMENT, NET Property and equipment consists of the following: Estimated As of December 31, 2020 2019 (in thousands) Cost: Computer hardware and software 3 - 5 $ 311 $ 218 Equipment 7 151 151 Leasehold improvements Term of lease 339 339 Intangible asset Patent term 11 3 812 711 Accumulated depreciation and amortization Computer hardware and software 55 55 Equipment 150 142 Leasehold improvements 339 325 Intangible asset * * 544 522 Property and equipment, net $ 268 $ 189 *less than $1,000 Depreciation and amortization in respect of property and equipment amounted to approximately $22,000 and $56,000 for 2020 and 2019, respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | NOTE 6—LEASES OmniMetrix leases office space and office equipment under operating lease agreements. The office lease, which had an expiration date of April 30, 2020, was amended in November 2019 and the term was extended to September 30, 2025. The office equipment lease was entered into in April 2019, previously it was month-to-month, and has a sixty-month term. Operating lease payments for 2020 and 2019 were approximately $78,000 and $109,000, respectively. The future minimum lease payments on non-cancelable operating leases as of December 31, 2020 using a discount rate of 4.5% are approximately $542,000. The 4.5% used is the incremental borrowing rate which, as defined in ASC 842, is the rate of interest that a lessee would have to pay to borrow, on a collateralized basis, over a similar term and in a similar economic environment, an amount equal to the lease payments. Supplemental cash flow information related to leases consisted of the following (in thousands): 2020 2019 Cash paid for operating lease liabilities $ 78 $ 47 Supplemental balance sheet information related to leases consisted of the following: 2020 Weighted average remaining lease terms for operating leases 4.72 The table below reconciles the undiscounted future minimum lease payments under non-cancelable lease agreements having initial terms in excess of one year to the total operating lease liabilities recognized on the consolidated balance sheet as of December 31, 2020 (in thousands): 2020 2021 $ 121 2022 125 2022 128 2024 129 2025 99 Thereafter — Total undiscounted cash flows 602 Less: Imputed interest (60 ) Present value of operating lease liabilities (a) $ 542 (a) Includes current portion of approximately $99,000 for operating leases. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | NOTE 7—DEBT (a) Loans payable On April 24, 2020, Acorn Energy, Inc. received Paycheck Protection Program (“PPP”) loan proceeds in the amount of $41,600. On April 30, 2020, OmniMetrix, LLC received PPP loan proceeds in the amount $419,800. Under the PPP of the Coronavirus Aid, Relief and Economic Security Act (the “Act”), up to the full principal amount of a loan and any accrued interest can be forgiven if the borrower uses all of the loan proceeds for forgivable purposes (payroll, benefits, lease/mortgage payments and/or utilities) required under the Act and any rule, regulation, or guidance issued by the Small Business Administration (the “SBA”) pursuant to the Act (collectively, the “Forgiveness Provisions”). The amount of forgiveness of the PPP loan depends on the borrower’s payroll costs over either an eight-week or twenty-four-week period beginning on the date of funding. Any processes or procedures established under the Forgiveness Provisions must be followed and any requirements of the Forgiveness Provisions must be fully satisfied to obtain such loan forgiveness. Pursuant to the provisions of the Act, the first six monthly payments of principal and interest will be deferred. Interest will accrue during the deferment period. The borrower must pay principal and interest payments on the fifth day of each month beginning seven months from the date of the applicable promissory note. On October 20, 2020, OmniMetrix submitted its PPP Loan Forgiveness Application to the SBA. On November 5, 2020, the SBA confirmed that OmniMetrix’s application for forgiveness had been approved and that its PPP loan, in the amount of $419,800 plus accrued interest of $2,162, had been forgiven. The Company elected not to apply for forgiveness of the PPP loan proceeds received by its parent entity, Acorn Energy, Inc., in the amount of $41,600 plus accrued interest of $206. This loan was repaid to the lender effective October 22, 2020. Aggregate interest expense on these loans at the time of forgiveness/repayment was approximately $1,000. (b) Line of credit In March 2019, OmniMetrix reinstated its loan and security agreement which provided OmniMetrix with access to accounts receivable formula-based financing of the lesser of 75% of eligible receivables or $1,000. Debt incurred under this financing arrangement bore interest at the greater of 6% and prime plus 1.5% per year. In addition, OmniMetrix was to pay a monthly service charge of 0.75% of the average aggregate principal amount outstanding for the prior month, for an effective rate of interest on advances of 15% at December 31, 2020. OmniMetrix also agreed to continue to maintain a minimum loan balance of $150,000 in its line-of-credit with the lender for a minimum of two years beginning March 1, 2019. From time to time, the balance outstanding could fall below $150,000 based on collections applied against the loan balance and the timing of loan draws. The monthly service charge and interest was calculated on the greater of the outstanding balance or $150,000. Interest expense for the year ended December 31, 2020 and 2019 was approximately $28,000 and $21,000, respectively. OmniMetrix had an outstanding balance of approximately $149,000 and $136,000 as of December 31, 2020 and 2019, respectively, pursuant to the loan and security agreement and approximately $191,000 was available to borrow. OmniMetrix paid off the outstanding balance in February 2021 and decided not to renew this line of credit, which expired in accordance with its terms on February 28, 2021. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 8—COMMITMENTS AND CONTINGENCIES On April 28, 2020, the Company entered into a new agreement for data hosting services, replacing an expiring agreement with the same vendor, effective May 1, 2020. The agreement has a twelve-month term and the total payments under this agreement are approximately $148,000 in the aggregate. This represents an increase of approximately $21,000 from the prior twelve-month term for additional services including enhanced business continuity and disaster recovery services. See Note 14-Subsequent Events. On August 19, 2019, OmniMetrix entered into an agreement with a software development partner to create and license to OmniMetrix a new software platform and application. Pursuant to this agreement, OmniMetrix paid this partner equal monthly payments over the first seven months of the term of the agreement equal to $200,000 in the aggregate. In addition, OmniMetrix will pay the partner a per sensor monitoring fee for each sensor connected to the developed technology, or (ii) a percentage of any revenue received above a specified amount per sensor monitored per month in oil and gas applications only. Commencing on January 1, 2021, OmniMetrix will pay the partner an annual licensing fee of $50,000 to be paid out on a monthly or quarterly basis as determined by OmniMetrix. No sensor monitoring fees or license fees were paid in 2019 or 2020. These fees commenced in 2021. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Equity | NOTE 9—EQUITY (a) General At December 31, 2020 the Company had issued and outstanding 39,687,589 shares of its common stock, par value $0.01 per share. Holders of outstanding common stock are entitled to receive dividends when, as and if declared by the Board and to share ratably in the assets of the Company legally available for distribution in the event of a liquidation, dissolution or winding up of the Company. The Company is not authorized to issue preferred stock. Accordingly, no preferred stock is issued or outstanding. (b) Rights Offering On June 28, 2019, the Company completed a rights offering, raising approximately $2,184,000 in proceeds of which approximately $1,628,000 was from related parties, net of approximately $210,000 in expenses. Pursuant to the rights offering, Acorn securityholders and parties to a backstop agreement purchased 9,975,553 shares of Acorn common stock for $0.24 per share. Under the terms of the rights offering, each right entitled securityholders as of June 3, 2019, the record date for the rights offering, to purchase 0.312 shares of Acorn common stock at a subscription price of $0.24 per whole share. No fractional shares were issued. The closing price of Acorn’s common stock on the record date of the rights offering was $0.2925. Distribution of the rights commenced on June 6, 2019 and were exercisable through June 24, 2019. In connection with the rights offering, Acorn entered into a backstop agreement with certain of its directors and Leap Tide Capital Management LLC, the sole manager of which is Acorn’s President and CEO, pursuant to which they agreed to purchase from Acorn any and all unsubscribed shares of common stock in the rights offering, subject to the terms, conditions and limitations of the backstop agreement. The backstop purchasers did not receive any compensation or other consideration for entering into or consummating the backstop agreement. On July 1, 2019, the Company utilized a portion of the rights offering proceeds to complete the planned reacquisition of a 19% interest in its OMX Holdings, Inc. subsidiary (“Holdings”) for $1,273,000, including accrued dividends. Holdings owns 100% of the membership interests of OmniMetrix, LLC. The purchase price was based on terms established in November 2015 at the time of the original investment. The purchase raised Acorn’s ownership in Holdings from 80% to 99%, with the remaining 1% owned by the former CEO of OmniMetrix, LLC. See Note 3 for further discussion. The balance of the rights offering net proceeds provides OmniMetrix with additional sales and marketing resources to facilitate expansion into additional geographic markets and new product applications, to support next-generation product development and for general working capital purposes. (c) Summary Employee Option Information The Company’s stock option plans provide for the grant to officers, directors and other key employees of options to purchase shares of common stock. The purchase price may be paid in cash or at the end of the option term, if the option is “in-the-money”, it is automatically exercised “net”. In a net exercise of an option, the Company does not require a payment of the exercise price of the option from the optionee but reduces the number of shares of common stock issued upon the exercise of the option by the smallest number of whole shares that has an aggregate fair market value equal to or in excess of the aggregate exercise price for the option shares covered by the option exercised. Each option is exercisable to one share of the Company’s common stock. Most options expire within five to ten years from the date of the grant, and generally vest over three-year period from the date of the grant. At the annual meeting of stockholders on September 11, 2012, the Company’s stockholders approved an Amendment to the Company’s 2006 Stock Incentive Plan to increase the number of available shares by 1,000,000 and an Amendment to the Company’s 2006 Stock Option Plan for Non-Employee Directors to increase the number of available shares by 200,000. In February 2019, the Company’s Board extended the expiration date of the Amended and Restated 2006 Stock Incentive Plan until December 31, 2024. At December 31, 2020, 1,717,394 options were available for grant under the Amended and Restated 2006 Stock Incentive Plan and no options were available for grant under the 2006 Stock Option Plan for Non-Employee Directors. In 2020 and 2019, 230,000 and 227,500 options, respectively, were granted to directors, executive officers and employees. In 2020 and 2019, there were no grants to non-employees (other than the non-employee directors and executive officers). The fair value of the options issued was approximately $59,000 and $58,000 in 2020 and 2019, respectively. 96,250 options were exercised in the year ended December 31, 2020. No options were exercised in the year ended December 31, 2019. The intrinsic value of options outstanding and of options exercisable at December 31, 2020 was approximately $29,000 and $46,000, respectively. The Company utilized the Black-Scholes option-pricing model to estimate fair value, utilizing the following assumptions for the respective years (all in weighted averages): 2020 2019 Risk-free interest rate 0.6 % 2.3 % Expected term of options, in years 4.4 4.7 Expected annual volatility 115.2 % 118.7 % Expected dividend yield — % — % Determined weighted average grant date fair value per option $ 0.25 $ 0.25 The expected term of the options is the length of time until the expected date of exercising the options. With respect to determining expected exercise behavior, the Company has grouped its option grants into certain groups in order to track exercise behavior and establish historical rates. The Company estimated volatility by considering historical stock volatility over the expected term of the option. The risk-free interest rates are based on the U.S. Treasury yields for a period consistent with the expected term. The Company expects no dividends to be paid. The Company believes that the valuation technique and the approach utilized to develop the underlying assumptions are appropriate in determining the estimated fair value of the Company’s stock options granted in the years ended December 31, 2020 and 2019. Estimates of fair value are not intended to predict actual future events or the value ultimately realized by persons who receive equity awards. (d) Summary Option Information A summary of the Company’s option plans as of December 31, 2020 and 2019, as well as changes during each of the years then ended, is presented below: 2020 2019 Number of Weighted Average Exercise Price Number of Options (in shares) Weighted Average Exercise Price Outstanding at beginning of year 1,364,490 1.87 1,466,489 $ 3.01 Granted at market price 230,000 0.36 227,500 0.31 Exercised 96,250 0.19 — — Forfeited or expired 775,739 2.80 (329,499 ) 5.86 Outstanding at end of year 722,501 0.62 1,364,490 1.87 Exercisable at end of year 429,833 0.81 1,190,156 $ 2.10 Summary information regarding the options outstanding and exercisable at December 31, 2020 is as follows: Outstanding Exercisable Range of Exercise Prices Number Outstanding Weighted Average Remaining Contractual Life Weighted Average Exercise Price Number Exercisable Weighted Average Exercise Price (in shares) (in years) (in shares) $0.14 – $0.41 611,250 5.13 $ 0.33 318,582 $ 0.32 $1.68 70,996 .73 $ 1.68 70,996 $ 1.68 $2.49 24,000 .32 $ 2.49 24,000 $ 2.49 $4.07 16,255 — $ 4.07 16,255 $ 4.07 722,501 429,833 Stock-based compensation expense included in selling, general and administrative expense in the Company’s Consolidated Statements of Operations was approximately $35,000 and $22,000 in the years ending December 31, 2020 and 2019, respectively. The total compensation cost related to non-vested awards not yet recognized was approximately 61,000 as of December 31, 2020. (e) Warrants The Company has issued warrants at exercise prices equal to or greater than market value of the Company’s common stock at the date of issuance. A summary of warrant activity follows: 2020 2019 Number of shares underlying warrants Weighted Average Exercise Price Number of shares underlying warrants Weighted Average Exercise Price Outstanding at beginning of year 2,177,857 1.28 2,392,142 $ 1.28 Granted — — — — Exercised — — — — Forfeited or expired 2,142,857 1.30 (214,285 ) 1.26 Outstanding and exercisable at end of year 35,000 0.13 2,177,857 $ 1.28 The warrants outstanding at December 31, 2020 have a weighted average remaining contractual life of approximately 26.5 months. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 10—INCOME TAXES (a) Composition of loss from continuing operations before income taxes is as follows (in thousands): Year ended December 31, 2020 2019 Domestic $ 76 $ (697 ) Income tax expense consists of the following (in thousands): Year ended December 31, 2020 2019 Current: Federal $ 16 $ — State and local 5 — 21 — Deferred: Federal (16 ) — State and local (5 ) — (21 ) — Total income tax expense $ — $ — (b) Effective Income Tax Rates Set forth below is a reconciliation between the federal tax rate and the Company’s effective income tax rates with respect to continuing operations: Year ended December 31, 2020 2019 Statutory Federal rates 21 % 21 % Increase (decrease) in income tax rate resulting from: Other, net (primarily permanent differences) 12 (2 ) Valuation allowance (33 ) (19 ) Effective income tax rates — % (— )% (c) Analysis of Deferred Tax Assets and (Liabilities) (in thousands): As of December 31, 2020 2019 Deferred tax assets (liabilities) consist of the following: Employee benefits and deferred compensation $ 1,076 $ 1,040 Investments and asset impairments 1,818 1,818 Other temporary differences (1,002 ) (871 ) Net operating loss and capital loss carryforwards 15,739 15,591 17,631 17,578 Valuation allowance (17,631 ) (17,578 ) Net deferred tax assets $ — $ — Valuation allowances relate principally to net operating loss carryforwards related to the Company’s consolidated tax losses as well as state tax losses related the Company’s OmniMetrix subsidiary and book-tax differences related asset impairments and stock compensation expense of the Company. During the year ended December 31, 2020, the valuation allowance increased by approximately $52,000. (d) Summary of Tax Loss Carryforwards As of December 31, 2020, the Company had various operating loss carryforwards expiring as follows (in thousands): Expiration Federal Capital Loss State 2023 $ — $ 556 $ — 2025 – 2031* 2,579 — — 2032 – 2039 63,180 — 14,898 Unlimited 3,882 — 1,721 Total $ 69,641 $ 556 $ 16,619 * The utilization of a portion of these net operating loss carryforwards is limited due to limits on utilizing net operating loss carryforwards under Internal Revenue Service regulations when or if a change of control were to occur (e) Taxation in the United States The Tax Cuts and Jobs Act (the “Act”) was enacted on December 22, 2017. The Act reduces the U.S. federal corporate tax rate from 35% to 21%, requires companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred and creates new taxes on certain foreign sourced earnings. The most significant impact of the legislation for the Company was a reduction of the value of the Company’s net deferred tax assets (which represent future tax benefits) as a result of lowering the U.S. corporate income tax rate from 35% to 21%. The Act also includes a requirement to pay a one-time transition tax (the “Transition Tax”) on the cumulative value of earnings and profits that were previously not repatriated for U.S. income tax purposes. The Company does not believe that it will be required to pay any Transition Tax on its previously unrepatriated earnings and profits of its previously consolidated foreign subsidiaries. As a holding company without other business activity in Delaware, the Company is exempt from Delaware state income tax. Thus, the Company’s statutory income tax rate on domestic earnings is the federal rate of 21%. |
Related Party Balances and Tran
Related Party Balances and Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Balances and Transactions | NOTE 11—RELATED PARTY BALANCES AND TRANSACTIONS a) Director Fees The Company recorded fees to directors of approximately $59,000 and $50,000 for the years ended December 31, 2020 and 2019, respectively, which is included in Selling, general and administrative expenses. Each Director of the Company may elect by written notice delivered on or before the first day of each calendar year whether to receive, in lieu of some or all of his or her retainer and board fees, that number of shares of Company common stock as shall have a value equal to the applicable retainer and board fees, based on the closing price of the Company’s common stock on its then-current trading platform or exchange on the last trading day immediately preceding the first day of the applicable year. Once made, the election shall be irrevocable for such election year and the shares subject to the election shall vest and be issued one-fourth upon the first day of the election year and one-fourth as of the first day of each of the second through fourth calendar quarters thereafter during the remainder of the election year. b) See Note 3 for information related to the sale of OmniMetrix Preferred Stock to one of the Company’s former directors and a loan from the director to OmniMetrix and the subsequent repurchase of this Preferred Stock on July 1, 2019. c) The related party balance due to Acorn from OmniMetrix is approximately $4,575,000 for amounts loaned, accrued interest and expenses paid by Acorn on Omni’s behalf as of December 31, 2020 as compared to approximately $4,506,000 as of December 31, 2019. OmniMetrix made gross repayments in the aggregate of $435,000 and $135,000 in the years ended December 31, 2020 and 2019, respectively. This balance is eliminated in consolidation. |
Segment Reporting and Geographi
Segment Reporting and Geographic Information | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting and Geographic Information | NOTE 12—SEGMENT REPORTING AND GEOGRAPHIC INFORMATION (a) General Information As of December 31, 2020, the Company operates in two reportable operating segments, both of which are performed though the Company’s OmniMetrix subsidiary: ● The PG segment provides wireless remote monitoring and control systems and services for critical assets as well as Internet of Things applications. ● The CP segment provides for remote monitoring of cathodic protection systems on gas pipelines for gas utilities and pipeline companies. The Company’s reportable segments are strategic business units, offering different products and services and are managed separately as each business requires different technology and marketing strategies. (b) Information about profit or loss and assets The accounting policies of all the segments are those described in the summary of significant accounting policies. The Company evaluates performance based on net income or loss before taxes. The Company does not systematically allocate assets to the divisions of the subsidiaries constituting its consolidated group, unless the division constitutes a significant operation. Accordingly, where a division of a subsidiary constitutes a segment that does not meet the quantitative thresholds of applicable accounting principles, depreciation expense is recorded against the operations of such segment, without allocating the related depreciable assets to that segment. However, where a division of a subsidiary constitutes a segment that does meet the quantitative thresholds, related depreciable assets, along with other identifiable assets, are allocated to such division. The following tables represent segmented data for the years ended December 31, 2020 and 2019 (in thousands). The Company does not currently break out total assets by reportable segment as there is a high level of shared utilization between the segments. Further, the Chief Decision Maker (CDM) does not review the assets by segment. PG CP Total Year ended December 31, 2020: Revenues from external customers $ 4,988 934 5,922 Intersegment revenues — — — Segment gross profit 3,626 505 4,131 Depreciation and amortization 19 3 22 Segment income (loss) before income taxes 624 (75 ) 549 Year ended December 31, 2019: Revenues from external customers $ 4,282 $ 1,208 $ 5,490 Intersegment revenues — — — Segment gross profit 3,030 560 3,590 Depreciation and amortization 43 13 56 Segment income (loss) before income taxes 353 (198 ) 155 (c) The following tables represent a reconciliation of the segment data to consolidated statement of operations and balance sheet data for the years ended and as of December 31, 2020 and 2019 (in thousands): Year ended 2020 2019 Total net income before income taxes for reportable segments $ 549 $ 155 Gain on PPP loan extinguishment 421 — Gain on sale of interest in DSIT — 50 Unallocated net cost of corporate headquarters* (894 ) (852 ) Consolidated net income (loss) before taxes on income $ 76 $ (647 ) * Includes approximately $35,000 and $22,000 of stock compensation expense for the years ended December 31, 2020 and 2019, respectively. As of December 31, 2020 2019 (in thousands) Assets: Total assets for OmniMetrix subsidiary $ 4,870 $ 3,965 Assets of corporate headquarters 331 1,019 Total consolidated assets $ 5,201 $ 4,984 Year ended December 31, 2020 2019 Revenues based on location of customer (in thousands): United States $ 5,887 $ 5,423 Other 35 67 $ 5,922 $ 5,490 All of the Company’s long-lived assets are located in the United States. (d) Revenues and Accounts Receivable Balances from Major Customers (in thousands): Invoiced Sales Accounts Receivable 2020 2019 2020 2019 Customer Total % Total % Balance % Balance % A $ 776 13 % $ 700 12 % $ 124 20 % $ 139 14 % B * * * * * * $ 172 18 % C * * * * $ 71 12 % * * * Balance is not significant. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | NOTE 13—REVENUE The following table disaggregates the Company’s revenue for the years ended December 31, 2020 and 2019 (in thousands): HW Monitoring Total Year ended December 31, 2020: PG Segment $ 1,423 $ 3,565 $ 4,988 CP Segment 680 254 934 Total Revenue $ 2,103 $ 3,819 $ 5,922 HW Monitoring Total Year ended December 31, 2019: PG Segment $ 1,193 $ 3,089 $ 4,282 CP Segment 970 238 1,208 Total Revenue $ 2,163 $ 3,327 $ 5,490 Deferred revenue activity for the year ended December 31, 2020 can be seen in the table below (in thousands): HW Monitoring Total Balance at December 31, 2019 $ 2,663 $ 1,832 $ 4,495 Additions during the period 1,602 3,965 5,567 Recognized as revenue (1,689 ) (3,819 ) (5,508 ) Balance at December 31, 2020 2,576 1,978 4,554 Amounts to be recognized as revenue in the year ending: December 31, 2021 1,471 1,743 3,214 December 31, 2022 846 226 1,072 December 31, 2023 and thereafter 259 9 268 $ 2,576 $ 1,978 $ 4,554 Other revenue of approximately $414,000 is related to custom design hardware, accessories, repairs, and other miscellaneous charges that are recognized to revenue when sold and are not deferred. Deferred revenue activity for the year ended December 31, 2019 can be seen in the table below (in thousands): HW Monitoring Total Balance at December 31, 2018 $ 2,432 $ 1,629 $ 4,061 Additions during the period 2,199 3,529 5,728 Recognized as revenue (1,968 ) (3,326 ) (5,294 ) Balance at December 31, 2019 $ 2,663 $ 1,832 $ 4,495 Amounts to be recognized as revenue in the year ending: December 31, 2020 $ 1,350 $ 1,654 $ 2,732 December 31, 2021 990 174 975 December 31, 2022 and thereafter 323 4 354 $ 2,663 $ 1,832 $ 4,495 Other revenue of approximately $196,000 is related to revenue from sales of custom design hardware, accessories, repairs, and other miscellaneous charges that are recognized to revenue when sold and are not deferred. Deferred charges relate only to the sale of equipment. Deferred charges activity for the year ended December 31, 2020 can be seen in the table below (in thousands): Balance at December 31, 2019 $ 1,433 Additions during the period 794 Recognized as cost of sales (921 ) Balance at December 31, 2020 $ 1,306 Amounts to be recognized as cost of sales in the year ending: December 31, 2021 $ 764 December 31, 2022 420 * December 31, 2023 and thereafter 122 * $ 1,306 * Amounts included in Other Assets in the Company’s Consolidated Balance Sheets at December 31, 2020. Data costs (COGS) for monitoring services of approximately $608,000 and the COGS for the miscellaneous revenue from sales of custom design hardware, accessories and repairs of approximately $262,000 are expensed as incurred and are not deferred. Deferred charges activity for the year ended December 31, 2019 can be seen in the table below (in thousands): Balance at December 31, 2018 $ 1,438 Additions during the period 1,241 Recognized as cost of sales (1,246 ) Balance at December 31, 2019 $ 1,433 Amounts to be recognized as cost of sales in the year ending: December 31, 2020 $ 741 December 31, 2021 531 * December 31, 2022 and thereafter 161 * $ 1,433 * Amounts included in Other Assets in the Company’s Consolidated Balance Sheets at December 31, 2019. Data costs (COGS) for monitoring services of approximately $544,000 and the COGS for the miscellaneous revenue from sales of accessories and repairs of approximately $110,000 are expensed as incurred and are not deferred. The Company pays its employees sales commissions for sales of HW and for first sales of monitoring services (not for renewals). In accordance with Topic 606, Revenue from Contracts with Customers, of the FASB Accounting Standards Codification (“ASC 606”), the Company capitalizes as a contract asset the sales commissions on these sales. Contract assets associated with HW are amortized over the estimated life of the units which are currently estimated to be three years. Contract assets associated with monitoring services are amortized over the expected monitoring life including renewals. The following table provides a reconciliation of the Company’s sales commissions contract assets for the year ended December 31, 2020 (in thousands): HW Monitoring Total Balance at December 31, 2019 $ 101 $ 37 $ 138 Additions during the period 106 23 129 Amortization of sales commissions (71 ) (19 ) (90 ) Balance at December 31, 2020 $ 136 $ 41 $ 177 The capitalized sales commissions are included in Other Current Assets (approximately $90,000) and Other Assets (approximately $87,000) in the Company’s Consolidated Balance Sheets at December 31, 2020. The following table provides a reconciliation of the Company’s sales commissions contract assets for the year ended December 31, 2019 (in thousands): HW Monitoring Total Balance at December 31, 2018 $ 107 $ 36 $ 143 Additions during the period 69 18 87 Amortization of sales commissions (75 ) (17 ) (92 ) Balance at December 31, 2019 $ 101 $ 37 $ 138 The capitalized sales commissions are included in Other Current Assets (approximately $60,000) and Other Assets (approximately $78,000) in the Company’s Consolidated Balance Sheets at December 31, 2019. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 14—SUBSEQUENT EVENTS On January 1, 2021, 30,000 options in the aggregate were issued to directors with an exercise price of $0.37 and that vest in equal increments on January 1, 2021, April 1, 2021, July 1, 2021 and October 1, 2021 valued at $7,400 in the aggregate. On February 2, 2021, 35,000 options were issued to the CEO with an exercise price of $0.48 and that vest in equal increments on February 2, 2021, April 1, 2021, July 1, 2021 and October 1, 2021 valued at approximately $11,500. The Company paid off the outstanding balance of $7,974 under the OmniMetrix loan and security agreement on February 26, 2021 and elected not to renew this line of credit, which expired in accordance with its terms on February 28, 2021. The Company’s data hosting agreement that was due to expire on April 28, 2021 was renewed at its existing terms for an additional one-year term. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). |
Principles of Consolidation and Presentation | Principles of Consolidation and Presentation The consolidated financial statements include the accounts of the Company and its subsidiaries. In these consolidated financial statements, “subsidiaries” are companies that are over 50% controlled, the accounts of which are consolidated with those of the Company. Significant intercompany transactions and balances are eliminated in consolidation; profits from intercompany sales are also eliminated; non-controlling interests are included in equity. |
Reclassification | Reclassification Certain reclassifications have been made to the Company’s consolidated financial statements for the year ended December 31, 2019 to conform to the current period’s consolidated financial statement presentation. There was no effect on total assets, equity and net loss. A reclassification of approximately $6,000 from finance expense to SG&A expense was recorded to reclass the Intuit processing fees for customer payments made through the Intuit portal via credit card or bank draft that was previously included in finance expense and is included in SG&A as of December 31, 2019. |
Use of Estimates in Preparation of Financial Statements | Use of Estimates in Preparation of Financial Statements The preparation of consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting periods. As applicable to these consolidated financial statements, the most significant estimates and assumptions relate to uncertainties with respect to income taxes, inventories, account receivable allowances, contingencies, revenue recognition, management’s projections and analyses of the possible impairments. |
Accounts Receivable | Accounts Receivable Accounts receivable consists of trade receivables. Trade receivables are recorded at the invoiced amount. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of customers to make required payments. This allowance is based on specific customer account reviews and historical collections experience. If the financial condition of the Company’s funding parties or customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. The Company performs ongoing credit evaluations of its customers and does not require collateral. During the years ended December 31, 2020 and 2019, approximately $21,000 and $14,000 was charged to expense, respectively. At December 31, 2020 and 2019, the balance in allowance for doubtful accounts was approximately $9,000 and $11,000, respectively. |
Inventory | Inventory Inventories are comprised of components (raw materials), work-in-process and finished goods, which are measured at net realizable value. Raw materials inventory is generally comprised of radios, cables, antennas, and electrical components. Finished goods inventory consists of fully assembled systems ready for final shipment to the customer. Costs are determined at cost of acquisition on a weighted average basis and include all outside production and applicable shipping costs. All inventories are periodically reviewed for impairment related to slow-moving and obsolete inventory. Management conducted an assessment and there were no impairment charges for the years ended December 31, 2020 or 2019. |
Non-Controlling Interests | Non-Controlling Interests The Financial Accounting Standards Board (“FASB”) requires that non-controlling interests be reported as a component of equity, changes in a parent’s ownership interest while the parent retains its controlling interest be accounted for as equity transactions, and upon a loss of control, retained ownership interest be re-measured at fair value, with any gain or loss recognized in earnings. The Company attributes the applicable percentage of income and losses to the non-controlling interests associated with OmniMetrix (see Note 3). |
Property and Equipment | Property and Equipment Property and equipment are presented at cost at the date of acquisition. Depreciation and amortization are calculated based on the straight-line method over the estimated useful lives of the depreciable assets, or in the case of leasehold improvements, the shorter of the lease term or the estimated useful life of the asset, a portion of which is allocated to cost of sales. Improvements are capitalized while repairs and maintenance are charged to operations as incurred. |
Capitalization of Software | Capitalization of Software In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-15 (“ASU 2018-15”), Intangibles - Goodwill and Other - Internal-Use Software (Topic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. ASU 2018-15 aligns 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. The Company elected to early adopt ASU 2018-15 for the period beginning in the second quarter of 2019, applying the guidance under ASU 2018-15 prospectively. During the years ended December 31, 2020 and 2019, the Company capitalized costs totaling approximately $87,000 and $163,000, respectively, related to such contracts. |
Leases | Leases The Company determines if a contractual arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, current operating lease liabilities, and noncurrent operating lease liabilities on the Company’s consolidated balance sheets. The Company evaluates and classifies leases as operating or finance leases for financial reporting purposes. The classification evaluation begins at the commencement date and the lease term used in the evaluation includes the non-cancellable period for which the Company has the right to use the underlying asset, together with renewal option periods when the exercise of the renewal option is reasonably certain and failure to exercise such option would result in an economic penalty. All the Company’s real estate leases are classified as operating leases. 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 liabilities are recognized at the commencement date of the lease based on the present value of the lease payments over the lease term. The lease payments included in the present value are fixed lease payments. As most of the Company’s leases do not provide an implicit rate, the Company estimates its collateralized incremental borrowing rate, based on information available at the commencement date, in determining the present value of lease payments. The Company applies the portfolio approach in applying discount rates to its classes of leases. The operating lease ROU assets include any payments made before the commencement date. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company does not currently have subleases. The Company does not currently have residual value guarantees or restrictive covenants in its leases. The Company also made accounting policy elections by class of underlying asset to not apply the recognition requirements of the standard to leases with terms of 12 months or less and to not separate non-lease components from lease components. Consequently, each separate lease component and the non-lease components associated with that lease component will be accounted for as a single lease component for lease classification, recognition, and measurement purposes. The lease obligation liability was approximately $542,000 and $595,000 as of December 31, 2020 and December 31, 2019, respectively, which includes the original office space lease, an amendment to this lease entered into in November 2019 that became effective with the period beginning May 1, 2020, and an office equipment lease entered into in April 2019. |
Treasury Stock | Treasury Stock Shares of common stock repurchased are recorded at cost as treasury stock. When shares are reissued, the cost method is used for determining cost. In accordance with GAAP, the excess of the acquisition cost over the reissuance price of the treasury stock, if any, is charged to additional paid-in capital, limited to the amount previously credited to additional paid-in capital, if any. Any excess is charged to accumulated deficit. |
Revenue Recognition | Revenue Recognition The Company’s revenue recognition policy is consistent with applicable revenue recognition guidance and interpretations. The core principle of ASC 606 is to recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. ASC 606 defines a five-step process to achieve this core principle, which includes: (1) identifying contracts with customers, (2) identifying performance obligations within those contracts, (3) determining the transaction price, (4) allocating the transaction price to the performance obligation in the contract, which may include an estimate of variable consideration, and (5) recognizing revenue when or as each performance obligation is satisfied. The Company assesses whether payment terms are customary or extended in accordance with normal practice relative to the market in which the sale is occurring. The Company’s sales arrangements generally include standard payment terms. These terms effectively relate to all customers, products, and arrangements regardless of customer type, product mix or arrangement size. If revenue recognition criteria are not satisfied, amounts received from customers are classified as deferred revenue on the balance sheet until such time as the revenue recognition criteria are met. Sales of OmniMetrix monitoring systems include the sale of equipment (“HW”) and of monitoring services (“Monitoring”). The majority of the sales of OmniMetrix equipment do not qualify as a separate unit of accounting. As a result, revenue (and related costs) associated with sale of equipment are recorded to deferred revenue (and deferred charges) upon shipment for PG and CP monitoring units. Revenue and related costs with respect to the sale of equipment are recognized over the estimated life of the units which are currently estimated to be three years. In the rare instance that a specific sale of OmnMetrix equipment does qualify as a separate unit of accounting (the unit is custom designed and sold without monitoring), the revenue is recognized when the unit is shipped to the customer and not deferred. Revenues from the prepayment of monitoring fees (generally paid twelve months in advance) are initially recorded as deferred revenue upon receipt of payment from the customer and then amortized to revenue over the monitoring service period. See Notes 12 and 13 for the disaggregation of the Company’s revenue for the periods presented. |
Warranty Provision | Warranty Provision OmniMetrix generally grants their customers a one-year warranty on their products. Estimated warranty obligations are provided for as a cost of sales in the period in which the related revenues are recognized, based on management’s estimate of future potential warranty obligations and limited historical experience. Adjustments are made to accruals as warranty claim data and historical experience warrant. The Company’s warranty obligations may be materially affected by product or service failure rates and other costs incurred in correcting a product or service failure. Should actual product or service failure rates or other related costs differ from the Company’s estimates, revisions to the accrued warranty liability would be required. |
Concentration of Credit Risk | Concentration of Credit Risk The Company’s financial instruments, which potentially subject the Company to concentrations of credit risk, consist principally of cash, escrow deposits and trade accounts receivable. The Company’s cash was deposited with a U.S. bank and amounted to approximately $2,063,000 at December 31, 2020. The Company does not believe there is significant risk of non-performance by these counterparties. See Note 12(d) with respect to revenue from significant customers and concentrations of trade accounts receivables. |
Financial Instruments | Financial Instruments Fair values of financial instruments included in current assets and current liabilities are estimated to approximate their book values, due to the short maturity of such instruments. |
Research and Development Expenses | Research and Development Expenses Research and development expenses consist primarily of labor and related expenses and are charged to operations as incurred. |
Advertising Expenses | Advertising Expenses Advertising expenses are charged to operations as incurred. Advertising expense was approximately $15,000 and $17,000 for each of the years ended December 31, 2020 and 2019, respectively, and are included in selling, general and administrative expenses on the consolidated statements of operations. |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for stock-based awards to employees in accordance with applicable accounting principles, which requires compensation expense related to share-based transactions, including employee stock options, to be measured and recognized in the consolidated financial statements based on a determination of the fair value of the stock options. The grant date fair value is determined using the Black-Scholes-Merton (“Black-Scholes”) pricing model. For all employee stock options, the Company recognizes expense over the requisite service period on an accelerated basis over the employee’s requisite service period (generally the vesting period of the equity grant). Stock compensation expense is included in selling, general and administrative expenses. The Company’s option pricing model requires the input of highly subjective assumptions, including the expected stock price volatility, expected term, and forfeiture rate. Any changes in these highly subjective assumptions significantly impact stock-based compensation expense. Options awarded to purchase shares of common stock issued to non-employees in exchange for services are accounted for as variable awards in accordance with applicable accounting principles. Such options are valued using the Black-Scholes option pricing model. See Note 9(c) for the assumptions used to calculate the fair value of stock-based employee compensation. Upon the exercise of options, it is the Company’s policy to issue new shares rather than utilizing treasury shares. |
Deferred Income Taxes | Deferred Income Taxes Deferred income taxes reflects the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, as well as operating loss, capital loss and tax credit carryforwards. Deferred tax assets and liabilities are classified as non-current in accordance with ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes. Valuation allowances are established against deferred tax assets if it is more likely than not that the assets will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates or laws is recognized in operations in the period that includes the enactment date. See Note 10(e) for the impact of the Tax Cuts and Jobs Act of 2017. |
Income Tax Uncertainties | Income Tax Uncertainties The calculation of the Company’s tax liabilities involves dealing with uncertainties in the application of complex tax regulations. The Company recognizes liabilities for uncertain tax positions based on the two-step process prescribed by applicable accounting principles. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step requires the Company to estimate and measure the tax benefit as the largest amount that is more likely than not being realized upon ultimate settlement. It is inherently difficult and subjective to estimate such amounts, as this requires the Company to determine the probability of various possible outcomes. The Company reevaluates these uncertain tax positions on a quarterly basis. This evaluation is based on factors including, but not limited to, changes in facts or circumstances, changes in tax law, effectively settled issues under audit, and new audit activity. Such a change in recognition or measurement would result in the recognition of a tax benefit or an additional charge to the tax provision in the period. The Company recognizes interest and penalties as incurred in finance income (expense), net in the consolidated statements of operations. As of December 31, 2020 and 2019, no interest or penalties were accrued on the consolidated balance sheets related to uncertain tax positions. During the years ending December 31, 2020 and 2019, the Company had no changes in unrecognized tax benefits or associated interest and penalties as a result of tax positions made during the current or prior periods with respect to its continuing or discontinued operations. The Company is subject to U.S. Federal and state income tax. As of January 1, 2020, the Company is no longer subject to examination by U.S. Federal taxing authorities for years before 2017, or for years before 2016 for state income taxes. |
Basic and Diluted Net Income (loss) Per Share | Basic and Diluted Net Income (Loss) Per Share Basic net income (loss) per share is computed by dividing the net income (loss) attributable to Acorn Energy, Inc. by the weighted average number of shares outstanding during the year, excluding treasury stock. Diluted net income (loss) per share is computed by dividing the net income (loss) by the weighted average number of shares outstanding plus the dilutive potential of common shares which would result from the exercise of stock options and warrants. The dilutive effects of stock options and warrants are excluded from the computation of diluted net loss per share if doing so would be antidilutive. The weighted average number of options and warrants that were excluded from the computation of diluted net loss per share, as they had an antidilutive effect, was approximately 409,626 (which have a weighted average exercise price of $0.84) and 3,368,013 for the years ending December 31, 2020 and 2019, respectively. The following data represents the amounts used in computing EPS and the effect on net income and the weighted average number of shares of dilutive potential common stock (in thousands): Year ended December 31, 2020 2019 Net income (loss) available to common stockholders $ 69 $ (618 ) Weighted average shares outstanding: -Basic 39,674 35,495 Add: Warrants 19 — Add: Stock options 20 — -Diluted 39,713 35,495 Basic and diluted net loss per share $ 0.00 $ (0.02 ) |
Fair Value Measurement | Fair Value Measurement The Company follows the provisions of the accounting standard which defines fair value, establishes a framework for measuring fair value and enhances fair value measurement disclosure. Under these provisions, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. The standard establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use on unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is described below: Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. Level 2: Observable prices that are based on inputs not quoted on active markets but corroborated by market data. Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. |
Recently Issued Accounting Principles | Recently Issued Accounting Principles Other than the pronouncement noted below, there have been no recent accounting pronouncements or changes in accounting pronouncements during the year ended December 31, 2020, that are of material significance, or have potential material significance, to the Company. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (“ASC 326”), authoritative guidance amending how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The guidance requires the application of a current expected credit loss model, which is a new impairment model based on expected losses. The new guidance is effective for interim and annual reporting periods beginning after December 15, 2022. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements and related disclosures. |
Recently Adopted Accounting Principles | Recently Adopted Accounting Principles In June 2018, the FASB issued ASU 2018-07, which simplifies the accounting for nonemployee share-based payment transactions. The amendments specify that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. This standard was effective in the first quarter of fiscal year 2020, and the adoption did not have a material impact on the consolidated financial statements. Other recently issued accounting updates are not expected to have a material impact on the Company’s consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Effect on Net Income and Weighted Average Number of Shares | The following data represents the amounts used in computing EPS and the effect on net income and the weighted average number of shares of dilutive potential common stock (in thousands): Year ended December 31, 2020 2019 Net income (loss) available to common stockholders $ 69 $ (618 ) Weighted average shares outstanding: -Basic 39,674 35,495 Add: Warrants 19 — Add: Stock options 20 — -Diluted 39,713 35,495 Basic and diluted net loss per share $ 0.00 $ (0.02 ) |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | As of December 31, 2020 2019 (in thousands) Raw materials $ 216 $ 260 Finished goods 20 31 $ 236 $ 291 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consists of the following: Estimated As of December 31, 2020 2019 (in thousands) Cost: Computer hardware and software 3 - 5 $ 311 $ 218 Equipment 7 151 151 Leasehold improvements Term of lease 339 339 Intangible asset Patent term 11 3 812 711 Accumulated depreciation and amortization Computer hardware and software 55 55 Equipment 150 142 Leasehold improvements 339 325 Intangible asset * * 544 522 Property and equipment, net $ 268 $ 189 *less than $1,000 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Schedule of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases consisted of the following (in thousands): 2020 2019 Cash paid for operating lease liabilities $ 78 $ 47 |
Schedule of Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases consisted of the following: 2020 Weighted average remaining lease terms for operating leases 4.72 |
Schedule of Future Minimum Lease Payments | The table below reconciles the undiscounted future minimum lease payments under non-cancelable lease agreements having initial terms in excess of one year to the total operating lease liabilities recognized on the consolidated balance sheet as of December 31, 2020 (in thousands): 2020 2021 $ 121 2022 125 2022 128 2024 129 2025 99 Thereafter — Total undiscounted cash flows 602 Less: Imputed interest (60 ) Present value of operating lease liabilities (a) $ 542 (a) Includes current portion of approximately $99,000 for operating leases. |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Schedule of Stock Options Fair Value Assumptions Estimated Using Black-Scholes Pricing Model | The Company utilized the Black-Scholes option-pricing model to estimate fair value, utilizing the following assumptions for the respective years (all in weighted averages): 2020 2019 Risk-free interest rate 0.6 % 2.3 % Expected term of options, in years 4.4 4.7 Expected annual volatility 115.2 % 118.7 % Expected dividend yield — % — % Determined weighted average grant date fair value per option $ 0.25 $ 0.25 |
Summary of Stock Option Activity | A summary of the Company’s option plans as of December 31, 2020 and 2019, as well as changes during each of the years then ended, is presented below: 2020 2019 Number of Weighted Average Exercise Price Number of Options (in shares) Weighted Average Exercise Price Outstanding at beginning of year 1,364,490 1.87 1,466,489 $ 3.01 Granted at market price 230,000 0.36 227,500 0.31 Exercised 96,250 0.19 — — Forfeited or expired 775,739 2.80 (329,499 ) 5.86 Outstanding at end of year 722,501 0.62 1,364,490 1.87 Exercisable at end of year 429,833 0.81 1,190,156 $ 2.10 |
Summary of Information Regarding to Options Outstanding and Exercisable | Summary information regarding the options outstanding and exercisable at December 31, 2020 is as follows: Outstanding Exercisable Range of Exercise Prices Number Outstanding Weighted Average Remaining Contractual Life Weighted Average Exercise Price Number Exercisable Weighted Average Exercise Price (in shares) (in years) (in shares) $0.14 – $0.41 611,250 5.13 $ 0.33 318,582 $ 0.32 $1.68 70,996 .73 $ 1.68 70,996 $ 1.68 $2.49 24,000 .32 $ 2.49 24,000 $ 2.49 $4.07 16,255 — $ 4.07 16,255 $ 4.07 722,501 429,833 |
Summary of Warrant Activity | A summary of warrant activity follows: 2020 2019 Number of shares underlying warrants Weighted Average Exercise Price Number of shares underlying warrants Weighted Average Exercise Price Outstanding at beginning of year 2,177,857 1.28 2,392,142 $ 1.28 Granted — — — — Exercised — — — — Forfeited or expired 2,142,857 1.30 (214,285 ) 1.26 Outstanding and exercisable at end of year 35,000 0.13 2,177,857 $ 1.28 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Composition of Loss from Continuing Operations Before Income Taxes | Composition of loss from continuing operations before income taxes is as follows (in thousands): Year ended December 31, 2020 2019 Domestic $ 76 $ (697 ) |
Components of Income Tax Expense | Income tax expense consists of the following (in thousands): Year ended December 31, 2020 2019 Current: Federal $ 16 $ — State and local 5 — 21 — Deferred: Federal (16 ) — State and local (5 ) — (21 ) — Total income tax expense $ — $ — |
Summary of Reconciliation Between Federal Tax Rate | Set forth below is a reconciliation between the federal tax rate and the Company’s effective income tax rates with respect to continuing operations: Year ended December 31, 2020 2019 Statutory Federal rates 21 % 21 % Increase (decrease) in income tax rate resulting from: Other, net (primarily permanent differences) 12 (2 ) Valuation allowance (33 ) (19 ) Effective income tax rates — % (— )% |
Schedule of Deferred Tax Assets and Liabilities | Analysis of Deferred Tax Assets and (Liabilities) (in thousands): As of December 31, 2020 2019 Deferred tax assets (liabilities) consist of the following: Employee benefits and deferred compensation $ 1,076 $ 1,040 Investments and asset impairments 1,818 1,818 Other temporary differences (1,002 ) (871 ) Net operating loss and capital loss carryforwards 15,739 15,591 17,631 17,578 Valuation allowance (17,631 ) (17,578 ) Net deferred tax assets $ — $ — |
Summary of Tax Loss Carryforwards | As of December 31, 2020, the Company had various operating loss carryforwards expiring as follows (in thousands): Expiration Federal Capital Loss State 2023 $ — $ 556 $ — 2025 – 2031* 2,579 — — 2032 – 2039 63,180 — 14,898 Unlimited 3,882 — 1,721 Total $ 69,641 $ 556 $ 16,619 * The utilization of a portion of these net operating loss carryforwards is limited due to limits on utilizing net operating loss carryforwards under Internal Revenue Service regulations when or if a change of control were to occur |
Segment Reporting and Geograp_2
Segment Reporting and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Summary of Segmented Data | The following tables represent segmented data for the years ended December 31, 2020 and 2019 (in thousands). The Company does not currently break out total assets by reportable segment as there is a high level of shared utilization between the segments. Further, the Chief Decision Maker (CDM) does not review the assets by segment. PG CP Total Year ended December 31, 2020: Revenues from external customers $ 4,988 934 5,922 Intersegment revenues — — — Segment gross profit 3,626 505 4,131 Depreciation and amortization 19 3 22 Segment income (loss) before income taxes 624 (75 ) 549 Year ended December 31, 2019: Revenues from external customers $ 4,282 $ 1,208 $ 5,490 Intersegment revenues — — — Segment gross profit 3,030 560 3,590 Depreciation and amortization 43 13 56 Segment income (loss) before income taxes 353 (198 ) 155 |
Schedule of Reconciliation of Segment Data to Consolidated Statement of Operations | The following tables represent a reconciliation of the segment data to consolidated statement of operations and balance sheet data for the years ended and as of December 31, 2020 and 2019 (in thousands): Year ended 2020 2019 Total net income before income taxes for reportable segments $ 549 $ 155 Gain on PPP loan extinguishment 421 — Gain on sale of interest in DSIT — 50 Unallocated net cost of corporate headquarters* (894 ) (852 ) Consolidated net income (loss) before taxes on income $ 76 $ (647 ) * Includes approximately $35,000 and $22,000 of stock compensation expense for the years ended December 31, 2020 and 2019, respectively. |
Schedule of Reconciliation of Segment Data to Consolidated Statement Balance Sheet | As of December 31, 2020 2019 (in thousands) Assets: Total assets for OmniMetrix subsidiary $ 4,870 $ 3,965 Assets of corporate headquarters 331 1,019 Total consolidated assets $ 5,201 $ 4,984 |
Schedule of Revenue from Customers by Geographical Areas | Year ended December 31, 2020 2019 Revenues based on location of customer (in thousands): United States $ 5,887 $ 5,423 Other 35 67 $ 5,922 $ 5,490 |
Schedule of Revenues, Accounts Receivable from Major Customers | Revenues and Accounts Receivable Balances from Major Customers (in thousands): Invoiced Sales Accounts Receivable 2020 2019 2020 2019 Customer Total % Total % Balance % Balance % A $ 776 13 % $ 700 12 % $ 124 20 % $ 139 14 % B * * * * * * $ 172 18 % C * * * * $ 71 12 % * * * Balance is not significant. |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregates of Revenue | The following table disaggregates the Company’s revenue for the years ended December 31, 2020 and 2019 (in thousands): HW Monitoring Total Year ended December 31, 2020: PG Segment $ 1,423 $ 3,565 $ 4,988 CP Segment 680 254 934 Total Revenue $ 2,103 $ 3,819 $ 5,922 HW Monitoring Total Year ended December 31, 2019: PG Segment $ 1,193 $ 3,089 $ 4,282 CP Segment 970 238 1,208 Total Revenue $ 2,163 $ 3,327 $ 5,490 |
Schedule of Deferred Revenue Activity | Deferred revenue activity for the year ended December 31, 2020 can be seen in the table below (in thousands): HW Monitoring Total Balance at December 31, 2019 $ 2,663 $ 1,832 $ 4,495 Additions during the period 1,602 3,965 5,567 Recognized as revenue (1,689 ) (3,819 ) (5,508 ) Balance at December 31, 2020 2,576 1,978 4,554 Amounts to be recognized as revenue in the year ending: December 31, 2021 1,471 1,743 3,214 December 31, 2022 846 226 1,072 December 31, 2023 and thereafter 259 9 268 $ 2,576 $ 1,978 $ 4,554 Deferred revenue activity for the year ended December 31, 2019 can be seen in the table below (in thousands): HW Monitoring Total Balance at December 31, 2018 $ 2,432 $ 1,629 $ 4,061 Additions during the period 2,199 3,529 5,728 Recognized as revenue (1,968 ) (3,326 ) (5,294 ) Balance at December 31, 2019 $ 2,663 $ 1,832 $ 4,495 Amounts to be recognized as revenue in the year ending: December 31, 2020 $ 1,350 $ 1,654 $ 2,732 December 31, 2021 990 174 975 December 31, 2022 and thereafter 323 4 354 $ 2,663 $ 1,832 $ 4,495 |
Schedule of Deferred Charges Activity | Deferred charges relate only to the sale of equipment. Deferred charges activity for the year ended December 31, 2020 can be seen in the table below (in thousands): Balance at December 31, 2019 $ 1,433 Additions during the period 794 Recognized as cost of sales (921 ) Balance at December 31, 2020 $ 1,306 Amounts to be recognized as cost of sales in the year ending: December 31, 2021 $ 764 December 31, 2022 420 * December 31, 2023 and thereafter 122 * $ 1,306 * Amounts included in Other Assets in the Company’s Consolidated Balance Sheets at December 31, 2020. Deferred charges activity for the year ended December 31, 2019 can be seen in the table below (in thousands): Balance at December 31, 2018 $ 1,438 Additions during the period 1,241 Recognized as cost of sales (1,246 ) Balance at December 31, 2019 $ 1,433 Amounts to be recognized as cost of sales in the year ending: December 31, 2020 $ 741 December 31, 2021 531 * December 31, 2022 and thereafter 161 * $ 1,433 * Amounts included in Other Assets in the Company’s Consolidated Balance Sheets at December 31, 2019. |
Schedule of Sales Commissions Contract Assets | The following table provides a reconciliation of the Company’s sales commissions contract assets for the year ended December 31, 2020 (in thousands): HW Monitoring Total Balance at December 31, 2019 $ 101 $ 37 $ 138 Additions during the period 106 23 129 Amortization of sales commissions (71 ) (19 ) (90 ) Balance at December 31, 2020 $ 136 $ 41 $ 177 The following table provides a reconciliation of the Company’s sales commissions contract assets for the year ended December 31, 2019 (in thousands): HW Monitoring Total Balance at December 31, 2018 $ 107 $ 36 $ 143 Additions during the period 69 18 87 Amortization of sales commissions (75 ) (17 ) (92 ) Balance at December 31, 2019 $ 101 $ 37 $ 138 |
Nature of Operations (Details N
Nature of Operations (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Mar. 11, 2021 | Dec. 31, 2018 | |
Cash and cash equivalents | $ 2,063 | $ 1,247 | $ 973 | |
Working capital | 95 | |||
Deferred revenue | 3,214 | 3,004 | ||
Net cash increased during the year ended | 816 | (16) | ||
Net cash provided by operating activities | 464 | (1,221) | ||
Net cash used in investing activities | (101) | (1,115) | ||
Net cash provided by financing activities | 453 | 2,320 | ||
Net proceeds from SBA PPP loan | 421 | |||
Cash | 2,063 | $ 1,247 | ||
Corporate [Member] | ||||
Cash and cash equivalents | $ 2,063 | |||
Corporate [Member] | Subsequent Event [Member] | ||||
Cash | $ 1,812,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Reclassification from interest expense | $ 6 | ||
Charged to expense | $ 21 | 14 | |
Allowance for doubtful accounts | 9 | 11 | |
Impairment charges | |||
Capitalized costs | 87 | 163 | |
Lease obligation liability | 542 | [1] | 595 |
Deposited cash and cash equivalents | 2,063 | ||
Penalties and interest accrued | |||
Unrecognized tax benefits | |||
Weighted average number of options and warrants | 409,626 | 3,368,013 | |
Weighted average exercise price of options and warrants | $ 0.84 | ||
Selling, General and Administrative Expenses [Member] | |||
Advertising expenses | $ 15 | $ 17 | |
Omni Metrix [Member] | |||
Estimated life of the customer relationship | 3 years | ||
Advance payment for monitoring fees, term | 12 months | ||
Subsidiaries [Member] | |||
Percentage of controlled interest | 50.00% | ||
[1] | Includes current portion of approximately $99,000 for operating leases. |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Effect on Net Income and Weighted Average Number of Shares (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | ||
Net income (loss) available to common stockholders | $ 69 | $ (618) |
Weighted average shares outstanding: Basic | 39,674,000 | 35,495,000 |
Add: Warrants | 19,000 | |
Add: Stock options | 20,000 | |
Weighted average shares outstanding: Diluted | 39,713,000 | 35,495,000 |
Basic and diluted net loss per share | $ 0 | $ (0.02) |
Investment in Omnimetrix (Detai
Investment in Omnimetrix (Details Narrative) - USD ($) $ in Thousands | Jul. 02, 2019 | Dec. 31, 2015 | Dec. 31, 2020 |
Payments to repurchase of preferred stock | $ 1,273 | ||
Unpaid dividend payment | $ 323 | ||
Omnimetrix LLC [Member] | Minimum [Member] | |||
Percentage of ownership in Omni Metrix, LLC | 80.00% | ||
Omnimetrix LLC [Member] | Maximum [Member] | |||
Percentage of ownership in Omni Metrix, LLC | 99.00% | ||
CEO [Member] | Omnimetrix LLC [Member] | |||
Percentage of ownership in Omni Metrix, LLC | 1.00% | ||
OMX Holdings, Inc [Member] | |||
Percentage acquired by one of the company's directors | 20.00% | ||
Purchase of Omni Metrix preferred stock | $ 1,000 | ||
OMX Holdings, Inc [Member] | Minimum [Member] | |||
Percentage of ownership in Omni Metrix, LLC | 80.00% | ||
OMX Holdings, Inc [Member] | Maximum [Member] | |||
Percentage of ownership in Omni Metrix, LLC | 99.00% | ||
OMX Holdings, Inc [Member] | Investor [Member] | |||
Investment | $ 1,000 | ||
OMX Holdings, Inc [Member] | CEO [Member] | |||
Percentage of ownership in Omni Metrix, LLC | 1.00% | ||
Omnimetrix LLC [Member] | |||
Percentage of ownership in Omni Metrix, LLC | 100.00% | 100.00% |
Inventory (Details Narrative)
Inventory (Details Narrative) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Inventory valuation reserves | $ 0 | $ 0 |
Inventory - Schedule of Invento
Inventory - Schedule of Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 216 | $ 260 |
Finished goods | 20 | 31 |
Inventory, net | $ 236 | $ 291 |
Property and Equipment, Net (De
Property and Equipment, Net (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation and amortization | $ 22 | $ 56 |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Property, Plant and Equipment, Gross | $ 812 | $ 711 | |
Accumulated depreciation and amortization | 544 | 522 | |
Property and equipment, net | 268 | 189 | |
Computer Hardware And Software [Member] | |||
Property, Plant and Equipment, Gross | 311 | 218 | |
Accumulated depreciation and amortization | $ 55 | 55 | |
Computer Hardware And Software [Member] | Minimum [Member] | |||
Estimated Useful Life (in years) | 3 years | ||
Computer Hardware And Software [Member] | Maximum [Member] | |||
Estimated Useful Life (in years) | 5 years | ||
Equipment [Member] | |||
Estimated Useful Life (in years) | 7 years | ||
Property, Plant and Equipment, Gross | $ 151 | 151 | |
Accumulated depreciation and amortization | $ 150 | 142 | |
Leasehold Improvements [Member] | |||
Estimated Useful Lives | Term of lease | ||
Property, Plant and Equipment, Gross | $ 339 | 339 | |
Accumulated depreciation and amortization | $ 339 | 325 | |
Intangible Asset [Member] | |||
Estimated Useful Lives | Patent term | ||
Property, Plant and Equipment, Gross | $ 11 | 3 | |
Accumulated depreciation and amortization | [1] | ||
[1] | less than $1,000 |
Leases (Details Narrative)
Leases (Details Narrative) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Apr. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Operating lease discount rate | 4.50% | |||
Operating lease liability | $ 542 | [1] | $ 595 | |
Operating Lease Agreements [Member] | Omni Metrix Holdings, Inc. [Member] | ||||
Lease expiration date | Apr. 30, 2020 | |||
Lease extended date | Sep. 30, 2025 | |||
Lease description | The office equipment lease was entered into in April 2019, previously it was month-to-month, and has a sixty-month term. | |||
Operating lease payments | $ 78 | $ 109 | ||
[1] | Includes current portion of approximately $99,000 for operating leases. |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Cash paid for operating lease liabilities | $ 78 | $ 47 |
Leases - Schedule of Suppleme_2
Leases - Schedule of Supplemental Balance Sheet Information Related to Leases (Details) | Dec. 31, 2020 |
Leases [Abstract] | |
Weighted average remaining lease terms for operating leases | 4 years 8 months 19 days |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
2021 | $ 121 | ||
2022 | 125 | ||
2023 | 128 | ||
2024 | 129 | ||
2025 | 99 | ||
Thereafter | |||
Total undiscounted cash flows | 602 | ||
Less: Imputed interest | (60) | ||
Present value of operating lease liabilities | $ 542 | [1] | $ 595 |
[1] | Includes current portion of approximately $99,000 for operating leases. |
Leases - Schedule of Future M_2
Leases - Schedule of Future Minimum Lease Payments (Details) (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Current operating lease | $ 99 | $ 53 |
Debt (Details Narrative)
Debt (Details Narrative) - USD ($) | Feb. 28, 2021 | Feb. 26, 2021 | Nov. 05, 2020 | Oct. 20, 2020 | Apr. 30, 2020 | Apr. 24, 2020 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 |
Interest expense | $ 1,000 | ||||||||
Omni Metrix [Member] | |||||||||
Interest expense | 28,000 | $ 21,000 | |||||||
Loan balance under loan and security agreement | 149,000 | $ 136,000 | |||||||
Available to borrowed amount | $ 191,000 | ||||||||
Omni Metrix [Member] | Subsequent Event [Member] | |||||||||
Debt instrument expiration date | Feb. 28, 2021 | Feb. 28, 2021 | |||||||
Omni Metrix [Member] | Loan and Security Agreement [Member] | |||||||||
Percentage of all eligible invoices | 75.00% | ||||||||
Maximum financing of account receivable formula-based agreement | $ 1,000 | ||||||||
Debt interest rate description | The greater of 6% and prime plus 1.5% per year. | ||||||||
Percentage of monthly service charge | 0.75% | ||||||||
Debt effective interest rate | 15.00% | ||||||||
Minimum loan balance | $ 150,000 | ||||||||
Monthly service charge and interest outstanding | $ 150,000 | ||||||||
Paycheck Protection Program [Member] | |||||||||
Proceeds from loan | $ 419,800 | $ 41,600 | |||||||
Paycheck Protection Program [Member] | Omnimetrix LLC [Member] | |||||||||
Debt instrument forgiveness amount | $ 419,800 | ||||||||
Accrued interest | $ 2,162 | ||||||||
Paycheck Protection Program [Member] | Acorn Energy, Inc [Member] | |||||||||
Proceeds from loan | $ 41,600 | ||||||||
Accrued interest | $ 206 | ||||||||
Repayment of loan date | Oct. 22, 2020 |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) - USD ($) $ in Thousands | Apr. 28, 2020 | Aug. 19, 2019 | Dec. 31, 2020 | Dec. 31, 2019 |
Omni Metrix [Member] | ||||
Monthly payments | $ 200 | |||
Partner sensor transaction description | In addition, OmniMetrix will pay the partner a per sensor monitoring fee for each sensor connected to the developed technology, or (ii) a percentage of any revenue received above a specified amount per sensor monitored per month in oil and gas applications only. Commencing on January 1, 2021, OmniMetrix will pay the partner an annual licensing fee of $50,000 to be paid out on a monthly or quarterly basis as determined by OmniMetrix. No sensor monitoring fees or license fees were paid in 2019 or 2020. These fees commenced in 2021. | |||
Annual licensing fee | $ 50 | |||
Sensor monitoring fees or license fees | ||||
Paycheck Protection Program [Member] | New Agreement [Member] | ||||
Payments of loan | $ 148 | |||
Debt Instrument increase | $ 21 | |||
Debt instrument, term | 12 months |
Equity (Details Narrative)
Equity (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | Jul. 02, 2019 | Jun. 28, 2019 | Jun. 03, 2019 | Feb. 28, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2015 | Sep. 11, 2012 |
Common stock issued | 39,687,589 | 39,591,339 | ||||||
Common stock, shares outstanding | 39,687,589 | |||||||
Common stock par value | $ 0.01 | $ 0.01 | ||||||
Proceeds from right offering | $ 2,184 | $ 2,184 | ||||||
Due from related parties | 1,628 | |||||||
Offering cost during period | $ 210 | $ 208 | ||||||
Rights offering price per share | $ 0.2925 | |||||||
Distribution of rights commenced description | Distribution of the rights commenced on June 6, 2019 and were exercisable through June 24, 2019 | |||||||
Number of options granted during period | 230,000 | 227,500 | ||||||
Fair value of options granted during period | $ 59 | $ 58 | ||||||
Number of options exercised | 96,250 | |||||||
Intrinsic value of options outstanding | $ 29 | |||||||
Intrinsic value of options exercisable | 46 | |||||||
Stock based compensation expense | 35 | $ 22 | ||||||
Compensation cost, non-vested awards not yet recognized | $ 61 | |||||||
Weighted average remaining contractual life of warrants outstanding | 26 years 6 months | |||||||
2006 Stock Incentive Plan [Member] | ||||||||
Expiration date | Dec. 31, 2024 | |||||||
2006 Amended and Restated Stock Incentive Plan [Member] | ||||||||
Number of options available for grant | 1,717,394 | |||||||
Directors, Executive Officers and Employees [Member] | ||||||||
Number of options granted during period | 230,000 | 227,500 | ||||||
Non-Employees [Member] | ||||||||
Number of options granted during period | ||||||||
Minimum [Member] | ||||||||
Options expire term | 5 years | |||||||
Maximum [Member] | ||||||||
Options expire term | 10 years | |||||||
Option vested term | 3 years | |||||||
Maximum [Member] | 2006 Stock Incentive Plan [Member] | ||||||||
Increase number of shares available | 1,000,000 | |||||||
Maximum [Member] | Non-Employee Directors [Member] | 2006 Stock Incentive Plan [Member] | ||||||||
Increase number of shares available | 200,000 | |||||||
OMX Holdings, Inc [Member] | ||||||||
Proceeds from right offering | $ 1,273 | |||||||
Business acquisition interest rate percentage | 19.00% | |||||||
OMX Holdings, Inc [Member] | CEO [Member] | ||||||||
Equity ownership percentage | 1.00% | |||||||
OMX Holdings, Inc [Member] | Minimum [Member] | ||||||||
Equity ownership percentage | 80.00% | |||||||
OMX Holdings, Inc [Member] | Maximum [Member] | ||||||||
Equity ownership percentage | 99.00% | |||||||
Omnimetrix LLC [Member] | ||||||||
Equity ownership percentage | 100.00% | 100.00% | ||||||
Securityholders and Parties [Member] | ||||||||
Purchase of common stock during period | 0.312 | |||||||
Common stock purchase price | $ 0.24 | |||||||
Securityholders and Parties [Member] | Backstop Agreement [Member] | ||||||||
Purchase of common stock during period | 9,975,553 | |||||||
Common stock purchase price | $ 0.24 |
Equity - Schedule of Stock Opti
Equity - Schedule of Stock Options Fair Value Assumptions Estimated Using Black-Scholes Pricing Model (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Equity [Abstract] | ||
Risk-free interest rate | 0.60% | 2.30% |
Expected term of options, in years | 4 years 4 months 24 days | 4 years 8 months 12 days |
Expected annual volatility | 115.20% | 118.70% |
Expected dividend yield | 0.00% | 0.00% |
Determined weighted average grant date fair value per option | $ 0.25 | $ 0.25 |
Equity - Summary of Stock Optio
Equity - Summary of Stock Option Activity (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Equity [Abstract] | ||
Number of Options (in shares), Outstanding at beginning of year | 1,364,490 | 1,466,489 |
Number of Options (in shares), Granted at market price | 230,000 | 227,500 |
Number of Options (in shares), Exercised | 96,250 | |
Number of Options (in shares), Forfeited or expired | 775,739 | (329,499) |
Number of Options (in shares), Outstanding at end of year | 722,501 | 1,364,490 |
Number of Options (in shares), Exercisable at end of year | 429,833 | 1,190,156 |
Weighted Average Exercise Price Per Share, Outstanding at beginning of year | $ 1.87 | $ 3.01 |
Weighted Average Exercise Price Per Share, Granted | 0.36 | 0.31 |
Weighted Average Exercise Price Per Share, Exercised | 0.19 | |
Weighted Average Exercise Price Per Share, Forfeited or expired | 2.80 | 5.86 |
Weighted Average Exercise Price Per Share, Outstanding at end of year | 0.62 | 1.87 |
Weighted Average Exercise Price Per Share, Exercisable at end of year | $ 0.81 | $ 2.10 |
Equity - Summary of Information
Equity - Summary of Information Regarding to Options Outstanding and Exercisable (Details) | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Number of Shares Outstanding | shares | 722,501 |
Number of Shares Exercisable | shares | 429,833 |
Range of Exercise Prices One [Member] | |
Range of Exercise Prices, Lower Limit | $ 0.14 |
Range of Exercise Prices, Upper limit | $ 0.41 |
Number of Shares Outstanding | shares | 611,250 |
Weighted Average Remaining Contractual Life (in years) | 5 years 1 month 16 days |
Weighted Average Exercise Price | $ 0.33 |
Number of Shares Exercisable | shares | 318,582 |
Weighted Average Exercise Price, Exercisable | $ 0.32 |
Range of Exercise Prices Two [Member] | |
Range of Exercise Prices | $ 1.68 |
Number of Shares Outstanding | shares | 70,996 |
Weighted Average Remaining Contractual Life (in years) | 8 months 23 days |
Weighted Average Exercise Price | $ 1.68 |
Number of Shares Exercisable | shares | 70,996 |
Weighted Average Exercise Price, Exercisable | $ 1.68 |
Range of Exercise Prices Three [Member] | |
Range of Exercise Prices | $ 2.49 |
Number of Shares Outstanding | shares | 24,000 |
Weighted Average Remaining Contractual Life (in years) | 3 months 26 days |
Weighted Average Exercise Price | $ 2.49 |
Number of Shares Exercisable | shares | 24,000 |
Weighted Average Exercise Price, Exercisable | $ 2.49 |
Range of Exercise Prices Four [Member] | |
Range of Exercise Prices | $ 4.07 |
Number of Shares Outstanding | shares | 16,255 |
Weighted Average Remaining Contractual Life (in years) | 0 years |
Weighted Average Exercise Price | $ 4.07 |
Number of Shares Exercisable | shares | 16,255 |
Weighted Average Exercise Price, Exercisable | $ 4.07 |
Equity - Summary of Warrant Act
Equity - Summary of Warrant Activity (Details) - Warrants [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Number of Warrants (in Shares), Outstanding at beginning balance | 2,177,857 | 2,392,142 |
Number of Warrants (in Shares), Granted | ||
Number of Warrants (in Shares), Exercised | ||
Number of Warrants (in Shares), Forfeited or expired | 2,142,857 | (214,285) |
Number of Warrants (in Shares), Outstanding at end balance | 35,000 | 2,177,857 |
Weighted Average Exercise Price Per Share, Outstanding at beginning balance | $ 1.28 | $ 1.28 |
Weighted Average Exercise Price Per Share, Granted | ||
Weighted Average Exercise Price Per Share, Exercised | ||
Weighted Average Exercise Price Per Share, Forfeited or expired | 1.30 | 1.26 |
Weighted Average Exercise Price Per Share, Outstanding at end balance | $ 0.13 | $ 1.28 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) $ in Thousands | Dec. 22, 2017 | Dec. 31, 2020 | Dec. 31, 2019 |
Valuation allowance, deferred tax asset, change in amount | $ 52 | ||
U.S. Income tax rate | 35.00% | 21.00% | 21.00% |
Delaware State Income Tax [Member] | |||
U.S. Income tax rate | 21.00% |
Income Taxes - Composition of L
Income Taxes - Composition of Loss from Continuing Operations Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Domestic | $ 76 | $ (697) |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Current Federal | $ 16 | |
Current State and local | 5 | |
Current Income Tax Expense | 21 | |
Deferred Federal | (16) | |
Deferred State and local | (5) | |
Deferred Income Tax Expense | (21) | |
Total income tax expense |
Income Taxes - Summary of Recon
Income Taxes - Summary of Reconciliation Between Federal Tax Rate (Details) | Dec. 22, 2017 | Dec. 31, 2020 | Dec. 31, 2019 |
Income Tax Disclosure [Abstract] | |||
Statutory Federal rates | 35.00% | 21.00% | 21.00% |
Increase (decrease) in income tax rate resulting from Other, net (primarily permanent differences) | 12.00% | (2.00%) | |
Increase (decrease) in income tax rate resulting from Valuation allowance | (33.00%) | (19.00%) | |
Effective income tax rates | 0.00% | 0.00% |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Income Tax Disclosure [Abstract] | ||
Deferred tax assets (liabilities), Employee benefits and deferred compensation | $ 1,076 | $ 1,040 |
Deferred tax assets (liabilities), Investments and asset impairments | 1,818 | 1,818 |
Deferred tax assets (liabilities), Other temporary differences | (1,002) | (871) |
Deferred tax assets (liabilities), Net operating loss and capital loss carryforwards | 15,739 | 15,591 |
Deferred tax assets, gross | 17,631 | 17,578 |
Valuation allowance | (17,631) | (17,578) |
Net deferred tax assets |
Income Taxes - Summary of Tax L
Income Taxes - Summary of Tax Loss Carryforwards (Details) $ in Thousands | Dec. 31, 2020USD ($) | |
Federal [Member] | ||
2023 | ||
2025 - 2031 | 2,579 | [1] |
2032 - 2039 | 63,180 | |
Unlimited | 3,882 | |
Total | 69,641 | |
Capital Loss [Member] | ||
2023 | 556 | |
2025 - 2031 | [1] | |
2032 - 2039 | ||
Unlimited | ||
Total | 556 | |
State [Member] | ||
2023 | ||
2025 - 2031 | [1] | |
2032 - 2039 | 14,898 | |
Unlimited | 1,721 | |
Total | $ 16,619 | |
[1] | The utilization of a portion of these net operating loss carryforwards is limited due to limits on utilizing net operating loss carryforwards under Internal Revenue Service regulations when or if a change of control were to occur |
Related Party Balances and Tr_2
Related Party Balances and Transactions (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Consulting and other fees to directors | $ 59 | $ 50 |
Omni Metrix [Member] | ||
Due from related party | 4,575 | 4,506 |
Repayment of related party debt | $ 435 | $ 135 |
Segment Reporting and Geograp_3
Segment Reporting and Geographic Information (Details Narrative) | 12 Months Ended |
Dec. 31, 2020Segments | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segment Reporting and Geograp_4
Segment Reporting and Geographic Information - Summary of Segmented Data (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Revenue from external customers | $ 5,922 | $ 5,490 |
Segment gross profit | 4,131 | 3,590 |
Depreciation and amortization | 22 | 56 |
Omni Metrix Holdings, Inc. [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue from external customers | 5,922 | 5,490 |
Intersegment revenues | ||
Segment gross profit | 4,131 | 3,590 |
Depreciation and amortization | 22 | 56 |
Segment income (loss) before income taxes | 549 | 155 |
PG [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue from external customers | 4,988 | 4,282 |
Intersegment revenues | ||
Segment gross profit | 3,626 | 3,030 |
Depreciation and amortization | 19 | 43 |
Segment income (loss) before income taxes | 624 | 353 |
CP [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue from external customers | 934 | 1,208 |
Intersegment revenues | ||
Segment gross profit | 505 | 560 |
Depreciation and amortization | 3 | 13 |
Segment income (loss) before income taxes | $ (75) | $ (198) |
Segment Reporting and Geograp_5
Segment Reporting and Geographic Information - Schedule of Reconciliation of Segment Data to Consolidated Statement of Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Segment Reporting [Abstract] | |||
Total net income before income taxes for reportable segments | $ 549 | $ 155 | |
Gain on PPP loan extinguishment | 421 | ||
Gain on sale of interest in DSIT | 50 | ||
Unallocated net cost of corporate headquarters | [1] | (894) | (852) |
Consolidated net income (loss) before taxes on income | $ 76 | $ (697) | |
[1] | Includes approximately $35,000 and $22,000 of stock compensation expense for the years ended December 31, 2020 and 2019, respectively. |
Segment Reporting and Geograp_6
Segment Reporting and Geographic Information - Schedule of Reconciliation of Segment Data to Consolidated Statement of Operations (Details) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting [Abstract] | ||
Stock compensation expense | $ 35 | $ 22 |
Segment Reporting and Geograp_7
Segment Reporting and Geographic Information - Schedule of Reconciliation of Segment Data to Consolidated Statement Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Segment Reporting [Abstract] | ||
Total assets for OmniMetrix subsidiary | $ 4,870 | $ 3,965 |
Assets of corporate headquarters | 331 | 1,019 |
Total consolidated assets | $ 5,201 | $ 4,984 |
Segment Reporting and Geograp_8
Segment Reporting and Geographic Information - Schedule of Revenue from Customers by Geographical Areas (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Revenues | $ 5,922 | $ 5,490 |
United States [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Revenues | 5,887 | 5,423 |
Other [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Revenues | $ 35 | $ 67 |
Segment Reporting and Geograp_9
Segment Reporting and Geographic Information - Schedule of Revenues, Accounts Receivable from Major Customers (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | ||||
Customer A [Member] | Invoiced Sales [Member] | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Major Customer balance | $ 776 | $ 700 | |||
Major Customer balance percentage | 13.00% | 12.00% | |||
Customer A [Member] | Accounts Receivable [Member] | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Major Customer balance | $ 124 | $ 139 | |||
Major Customer balance percentage | 20.00% | 14.00% | |||
Customer B [Member] | Invoiced Sales [Member] | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Major Customer balance | [1] | ||||
Major Customer balance percentage | [1] | ||||
Customer B [Member] | Accounts Receivable [Member] | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Major Customer balance | [1] | $ 172 | |||
Major Customer balance percentage | [1] | 18.00% | |||
Customer C [Member] | Invoiced Sales [Member] | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Major Customer balance | [1] | ||||
Major Customer balance percentage | [1] | ||||
Customer C [Member] | Accounts Receivable [Member] | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Major Customer balance | $ 71 | [1] | |||
Major Customer balance percentage | 12.00% | [1] | |||
[1] | Balance is not significant. |
Revenue (Details Narrative)
Revenue (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue | $ 5,922 | $ 5,490 |
Data costs (COGS) | 1,791 | 1,900 |
Other current assets | 126 | 189 |
Capitalized Sales Commissions [Member] | ||
Other current assets | 90 | 60 |
Other assets | 87 | 78 |
Other Revenue Related To Revenue From Sales of Custom Design Hardware, Accessories, Repairs and Other Miscellaneous Charges [Member] | ||
Revenue | 414 | 196 |
Monitoring Services [Member] | ||
Data costs (COGS) | 608 | 544 |
Miscellaneous Revenue from Sales of Custom Design Hardware, Accessories and Repairs [Member] | ||
Data costs (COGS) | $ 262 | $ 110 |
Revenue - Schedule of Disaggreg
Revenue - Schedule of Disaggregates of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue | $ 5,922 | $ 5,490 |
PG [Member] | ||
Revenue | 4,988 | 4,282 |
CP [Member] | ||
Revenue | 934 | 1,208 |
Hardware [Member] | ||
Revenue | 2,103 | 2,163 |
Hardware [Member] | PG [Member] | ||
Revenue | 1,423 | 1,193 |
Hardware [Member] | CP [Member] | ||
Revenue | 680 | 970 |
Monitoring [Member] | ||
Revenue | 3,819 | 3,327 |
Monitoring [Member] | PG [Member] | ||
Revenue | 3,565 | 3,089 |
Monitoring [Member] | CP [Member] | ||
Revenue | $ 254 | $ 238 |
Revenue - Schedule of Deferred
Revenue - Schedule of Deferred Revenue Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Deferred revenue beginning balance | $ 4,495 | $ 4,061 |
Additions during the period | 5,567 | 5,728 |
Recognized as revenue | (5,508) | (5,294) |
Deferred revenue ending balance | 4,554 | 4,495 |
December 31, 2021 [Member] | ||
Recognized as revenue | 3,214 | 2,732 |
December 31, 2022 [Member] | ||
Recognized as revenue | 1,072 | 975 |
December 31, 2023 and Thereafter [Member] | ||
Recognized as revenue | 268 | 354 |
Hardware [Member] | ||
Deferred revenue beginning balance | 2,663 | 2,432 |
Additions during the period | 1,602 | 2,199 |
Recognized as revenue | (1,689) | (1,968) |
Deferred revenue ending balance | 2,576 | 2,663 |
Hardware [Member] | December 31, 2021 [Member] | ||
Recognized as revenue | 1,471 | 1,350 |
Hardware [Member] | December 31, 2022 [Member] | ||
Recognized as revenue | 846 | 990 |
Hardware [Member] | December 31, 2023 and Thereafter [Member] | ||
Recognized as revenue | 259 | 323 |
Monitoring [Member] | ||
Deferred revenue beginning balance | 1,832 | 1,629 |
Additions during the period | 3,965 | 3,529 |
Recognized as revenue | (3,819) | (3,326) |
Deferred revenue ending balance | 1,978 | 1,832 |
Monitoring [Member] | December 31, 2021 [Member] | ||
Recognized as revenue | 1,743 | 1,654 |
Monitoring [Member] | December 31, 2022 [Member] | ||
Recognized as revenue | 226 | 174 |
Monitoring [Member] | December 31, 2023 and Thereafter [Member] | ||
Recognized as revenue | $ 9 | $ 4 |
Revenue - Schedule of Deferre_2
Revenue - Schedule of Deferred Charges Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | |||
Deferred charges beginning balance | $ 1,433 | $ 1,438 | ||
Additions, net of adjustments, during the period | 794 | 1,241 | ||
Recognized as cost of sales | (921) | (1,246) | ||
Deferred charges ending balance | 1,306 | 1,433 | ||
December 31, 2021 [Member] | ||||
Recognized as cost of sales | 764 | 741 | ||
December 31, 2022 [Member] | ||||
Recognized as cost of sales | 420 | [1] | 531 | [2] |
December 31, 2023 and Thereafter [Member] | ||||
Recognized as cost of sales | $ 122 | [1] | $ 161 | [2] |
[1] | Amounts included in Other Assets in the Company's Consolidated Balance Sheets at December 31, 2020. | |||
[2] | Amounts included in Other Assets in the Company's Consolidated Balance Sheets at December 31, 2019. |
Revenue - Schedule of Sales Com
Revenue - Schedule of Sales Commissions Contract Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Sales commissions contract assets beginning balance | $ 138 | $ 143 |
Additions during the period | 129 | 87 |
Amortization of sales commissions | (90) | (92) |
Sales commissions contract assets ending balance | 177 | 138 |
Hardware [Member] | ||
Sales commissions contract assets beginning balance | 101 | 107 |
Additions during the period | 106 | 69 |
Amortization of sales commissions | (71) | (75) |
Sales commissions contract assets ending balance | 136 | 101 |
Monitoring [Member] | ||
Sales commissions contract assets beginning balance | 37 | 36 |
Additions during the period | 23 | 18 |
Amortization of sales commissions | (19) | (17) |
Sales commissions contract assets ending balance | $ 41 | $ 37 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - USD ($) | Feb. 28, 2021 | Feb. 26, 2021 | Feb. 02, 2021 | Jan. 01, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Number of option issued, shares | 230,000 | 227,500 | ||||
Subsequent Event [Member] | Omni Metrix [Member] | ||||||
Repayment of related party debt | $ 7,974 | |||||
Line of credit facility, expiration date | Feb. 28, 2021 | Feb. 28, 2021 | ||||
Subsequent Event [Member] | Director [Member] | ||||||
Number of option issued, shares | 30,000 | |||||
Options exercise price | $ 0.37 | |||||
Number of option issued, value | $ 7,400 | |||||
Vest in equal increments description | Vest in equal increments on January 1, 2021, April 1, 2021, July 1, 2021 and October 1, 2021. | |||||
Subsequent Event [Member] | CEO [Member] | ||||||
Number of option issued, shares | 35,000 | |||||
Options exercise price | $ 0.48 | |||||
Number of option issued, value | $ 11,500 | |||||
Vest in equal increments description | Vest in equal increments on February 2, 2021, April 1, 2021, July 1, 2021 and October 1, 2021. |