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AATC Autoscope Technologies

Document and Entity Information

Document and Entity Information - shares3 Months Ended
Mar. 31, 2021Apr. 30, 2021
Entity Information [Line Items]
Document Type10-Q
Amendment Flagfalse
Document Period End DateMar. 31,
2021
Document Fiscal Year Focus2021
Document Fiscal Period FocusQ1
Entity Registrant NameIMAGE SENSING SYSTEMS INC
Entity Central Index Key0000943034
Current Fiscal Year End Date--12-31
Entity Filer CategoryNon-accelerated Filer
Entity Common Stock, Shares Outstanding5,354,337
Entity Current Reporting StatusYes
Entity Small Businesstrue
Entity Emerging Growth Companyfalse
Entity Shell Companyfalse
Entity File Number0-26056
Entity Address, Address Line OneSpruce Tree Centre, Suite 400
Entity Address, Address Line Two1600 University Avenue West
Entity Address, City or TownSt. Paul
Entity Address, State or ProvinceMN
Entity Address, Postal Zip Code55104
Entity Tax Identification Number41-1519168
City Area Code(651)
Local Phone Number603-7700
Entity Incorporation, State or Country CodeMN
Entity Interactive Data CurrentYes
Document Quarterly Reporttrue
Document Transition Reportfalse
Common Stock [Member]
Entity Information [Line Items]
Title of 12(b) SecurityCommon Stock, $0.01 par value
Trading SymbolISNS
Security Exchange NameNASDAQ
Rights [Member]
Entity Information [Line Items]
Title of 12(b) SecurityPreferred Stock Purchase Rights
Trading SymbolISNS
Security Exchange NameNASDAQ

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020
Current assets:
Cash and cash equivalents $ 8,212 $ 8,605
Accounts receivable, net of allowance for doubtful accounts of $5 and $2 respectively2,850 2,261
Inventories829 770
Prepaid expenses and other current assets434 480
Total current assets12,325 12,116
Property and equipment:
Furniture and fixtures154 154
Leasehold improvements6 6
Equipment1,222 1,215
Property and equipment, Gross1,382 1,375
Accumulated depreciation1,114 1,072
Property and equipment, Net268 303
Operating lease assets, net82 136
Intangible assets, net3,097 3,161
Deferred income taxes5,507 5,708
TOTAL ASSETS21,279 21,424
Current liabilities:
Accounts payable301 547
Deferred revenue38 37
Warranty130 141
Accrued compensation128 148
Operating lease obligations75 126
Short-term debt0 349
Other current liabilities124 124
Total current liabilities796 1,472
Operating lease obligations6 8
Long-term debt0 574
TOTAL LIABILITIES802 2,054
Shareholders' equity:
Preferred stock, $0.01 par value; 5,000,000 shares authorized, none issued or outstanding0 0
Common stock, $0.01 par value; 20,000,000 shares authorized, 5,354,337 and 5,352,626 issued and outstanding at March 31, 2021 and December 31, 2020, respectively54 54
Additional paid-in capital24,997 24,968
Accumulated other comprehensive loss(203)(150)
Accumulated deficit(4,371)(5,502)
Total shareholders' equity20,477 19,370
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 21,279 $ 21,424

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020
Condensed Consolidated Balance Sheets [Abstract]
Accounts receivable, allowance for doubtful accounts $ 5 $ 2
Preferred stock, par value (in dollars per share) $ 0.01 $ 0.01
Preferred stock shares authorized5,000,000 5,000,000
Preferred stock shares issued0 0
Preferred stock shares outstanding0 0
Common stock, par value (in dollars per share) $ 0.01 $ 0.01
Common stock shares authorized20,000,000 20,000,000
Common stock shares issued5,354,337 5,352,626
Common stock shares outstanding5,354,337 5,352,626

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Revenue:
Total Revenue $ 2,979 $ 3,159
Cost of revenue:
Total Cost of revenue706 623
Gross profit2,273 2,536
Operating expenses:
Selling, general and administrative1,366 1,909
Research and development496 902
Total Operating expenses1,862 2,811
Income (loss) from operations411 (275)
Other income, net925 0
Income (loss) from operations before income taxes1,336 (275)
Income tax expense (benefit)205 (164)
Net income (loss) $ 1,131 $ (111)
Net income (loss) per share:
Basic (in dollars per share) $ 0.21 $ (0.02)
Diluted (in dollars per share) $ 0.21 $ (0.02)
Weighted average number of common shares outstanding:
Basic (in shares)5,322 5,267
Diluted (in shares)5,342 5,267
Product sales [Member]
Revenue:
Total Revenue $ 1,163 $ 1,050
Cost of revenue:
Total Cost of revenue613 531
Royalties [Member]
Revenue:
Total Revenue1,816 2,109
Cost of revenue:
Total Cost of revenue $ 93 $ 92

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Condensed Consolidated Statements of Comprehensive Income [Abstract]
Net income (loss) $ 1,131 $ (111)
Other comprehensive income (loss):
Foreign currency translation adjustment(53)(106)
Comprehensive income (loss) $ 1,078 $ (217)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($)3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Operating activities:
Net income (loss) $ 1,131,000 $ (111,000)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation40,000 50,000
Software amortization187,000 174,000
Stock-based compensation53,000 59,000
Deferred income tax benefit201,000 0
Forgiveness income from PPP Loan (Note L)(931,000)0
Changes in operating assets and liabilities:
Accounts receivable, net(590,000)228,000
Inventories(59,000)95,000
Prepaid expenses and other current assets46,000 (108,000)
Accounts payable(242,000)186,000
Accrued expenses and other current liabilities(22,000)(79,000)
Net cash provided by (used for) operating activities(186,000)494,000
Investing activities:
Capitalized software development costs(123,000)(22,000)
Purchases of property and equipment(10,000)(75,000)
Net cash used for investing activities(133,000)(97,000)
Financing activities:
Stock for tax withholding(24,000)0
Net cash used for financing activities(24,000)0
Effect of exchange rate changes on cash(50,000)(90,000)
Change in cash and cash equivalents(393,000)307,000
Cash and cash equivalents at beginning of period8,605,000 5,118,000
Cash and cash equivalents at end of period8,212,000 5,425,000
Non-Cash investing and financing activities:
Purchase of property and equipment in accounts payable $ 3,000 $ 25,000

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Shareholders' Equity - USD ($) $ in ThousandsTotalCommon StockAdditional Paid-In CaptalAccumulated Other Comprehensive LossAccumulated Deficit
Balance at Mar. 31, 2020 $ 17,775 $ 53 $ 24,810 $ (412) $ (6,676)
Balance (in shares) at Mar. 31, 20205,331,799
Stock-based compensation $ 59 59
Stock-based compensation (in shares)8,950
Stock options exercised (in shares)0
Comprehensive income (loss):
Foreign currency translation adjustment $ (106)(106)
Net income (loss)(111)(111)
Balance at Dec. 31, 201917,933 $ 53 24,751 (306)(6,565)
Balance (in shares) at Dec. 31, 20195,322,849
Balance at Mar. 31, 202120,477 $ 54 24,997 (203)(4,371)
Balance (in shares) at Mar. 31, 20215,354,337
Stock-based compensation $ 53 53
Stock-based compensation (in shares)7,035
Stock options exercised (in shares)0
Stock for tax withholding $ (24)(24)
Stock for tax withholding (in shares)(5,324)
Comprehensive income (loss):
Foreign currency translation adjustment(53)(53)
Net income (loss)1,131 1,131
Balance at Dec. 31, 2020 $ 19,370 $ 54 $ 24,968 $ (150) $ (5,502)
Balance (in shares) at Dec. 31, 20205,352,626

Basis of Presentation

Basis of Presentation3 Months Ended
Mar. 31, 2021
Basis of Presentation [Abstract]
Basis of PresentationNote A: Basis of Presentation Image Sensing Systems, Inc. (referred to in this Quarterly Report on Form 10-Q as "we," "us," "our" and the "Company") develops and markets video and radar processing products for use in applications such as intersection control, highway, bridge and tunnel traffic management and traffic data collection. We sell our products primarily to distributors and also receive royalties under a license agreement with a manufacturer/distributor for certain of our products. Our products are used primarily by governmental entities. The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and with the instructions to the Quarterly Report on Form 10-Q, which require the Company to make estimates and assumptions that affect amounts reported. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to rules and regulations of the Securities and Exchange Commission (the "SEC"). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. It is the opinion of management that the unaudited condensed consolidated financial statements include all adjustments consisting of normal recurring accruals considered necessary for a fair presentation. All significant intercompany balances and transactions have been eliminated. Operating results for the three March 31, 2021 Corporate Reorganization On April 28, 2021, the Board of Directors of the Company approved proceeding with the implementation of a reorganization (the “Reorganization”) of the Company's corporate structure into a holding company structure. When implemented, the Company will become a wholly-owned subsidiary of a new holding company, Autoscope Technologies Corporation (“Autoscope”), which will replace the Company as the public company trading on the Nasdaq Stock Market. Outstanding shares of the Company will be automatically converted into shares of common stock of Autoscope. The holding company reorganization is not expected to result in a change in the directors, executive officers, management or business of the Company. The Reorganization is intended to be a tax-free transaction for U.S. federal income tax purposes for the Company’s shareholders and, subject to obtaining required approvals or any other intervening developments, is expected to be completed in the second quarter of 2021. Cash Dividend On April 28, 2021, the Board of Directors of the Company approved a cash dividend of $0.12 per share to shareholders of record on the close of business on May 10, 2021, which is payable to shareholders on May 20, 2021. Summary of Significant Accounting Policies The Company believes that of its significant accounting policies, the following are particularly important to the portrayal of the Company's results of operations and financial position and may require the application of a higher level of judgment by the Company's management and, as a result, are subject to an inherent degree of uncertainty. Revenue Recognition We recognize revenue when control of the promised goods or services is transferred to customers in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services.
We determine revenue recognition through the following steps:
● Identification of a contract, or contracts, with a customer;
● Identification of performance obligations in the contract;
● Determination of the transaction price;
● Allocation of the transaction price to the performance obligations in the contract; and
● Recognition of revenue when, or as, we satisfy a performance obligation. Revenue disaggregated by revenue source for the three months ended March 31, 2021 and 2020 consists of the following (in thousands); revenue excludes sales and usage-based taxes when or if it has been determined that we are acting as a pass-through agent:
Three Months Ended March 31,
2021 2020
Product sales $ 1,163 $ 1,050
Royalties 1,816 2,109
Total revenue $ 2,979 $ 3,159
Product Sales: Product revenue is generated primarily from the direct sales of our RTMS radar systems worldwide and our Autoscope video systems in Europe and Asia. Revenue is recognized when control of the promised goods or services is transferred to our customers in an amount that reflects the amount we expect to receive in exchange for those goods or services. Certain product sales may contain multiple performance obligations for revenue recognition purposes. Multiple performance obligations may include hardware, software, installation services, training, support, and extended warranties. For performance obligations without observable stand-alone prices charged to customers Revenue for services such as maintenance, repair, and technical support is recognized either as the service is performed or ratably over the defined contractual period for service maintenance contracts. From time to time, our payment terms may vary by the type and location of our customer and the products or services offered. Revenue for extended warranties are deferred until the coverage period and then recognized ratably over the extended warranty term. We record deferred revenues when cash payments are received or due in advance of our performance, including amounts which are refundable. We record provisions against sales revenue for estimated returns and allowances in the period when the related revenue is recorded based on historical sales returns and changes in end user demand. Royalties: Econolite Control Products, Inc. (“Econolite”) is our licensee that sells our Autoscope video system products in the United States, Mexico, Canada and the Caribbean. The royalty of approximately 50% of the gross profit on licensed products is recognized when the products are shipped or delivered by Econolite to its customers. Practical Expedients and Exemptions: We generally expense sales commissions when incurred because the amortization periods would have been one year We do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year Inventories Inventories are primarily electronic components and finished goods and are valued at the lower of cost or net realizable value determined under the first-in, first-out accounting method. Income Taxes We record a tax provision for the anticipated tax consequences of our reported results of operations. Deferred tax assets and liabilities are measured using the currently enacted tax rates that apply to taxable income in effect for the years in which those deferred tax assets and liabilities are expected to be realized or settled. We record a valuation allowance to reduce deferred tax assets to the amount that is believed more likely than not to be realized. We believe it is more likely than not that forecasted income, including income that may be generated as a result of certain tax planning strategies, together with the tax effects of the deferred tax liabilities, will be sufficient to fully recover the remaining net realizable value of our deferred tax assets. If all or part of the net deferred tax assets are determined not to be realizable in the future, an adjustment to the valuation allowance would be charged to earnings in the period such determination is made. In addition, the calculation of tax liabilities involves significant judgment in estimating the impact of uncertainties in the application of complex tax laws. Resolution of these uncertainties in a manner inconsistent with management’s expectations could have a material impact on our financial condition and operating results. We recognize penalties and interest expense related to unrecognized tax benefits in income tax expense. Intangible Assets We capitalize certain software development costs related to software to be sold, leased, or otherwise marketed. Capitalized software development costs include purchased materials, services, internal labor and other costs associated with the development of new products and services. Software development costs are expensed as incurred until technological feasibility has been established, at which time future costs incurred are capitalized until the product is available for general release to the public. Based on our product development process, technological feasibility is generally established once product and detailed program designs have been completed, uncertainties related to high-risk development issues have been resolved through coding and testing, and we have established that the necessary skills, hardware, and software technology are available for production of the product. Once a software product is available for general release to the public, capitalized development costs associated with that product will begin to be amortized to cost of sales over the product's estimated economic selling life, using the greater of straight-line or a method that results in cost recognition in future periods that is consistent with the anticipated timing of product revenue recognition. Capitalized software development costs are subject to an ongoing assessment of recoverability, which is impacted by estimates and assumptions of future revenues and expenses for these software products, as well as other factors such as changes in product technologies. Any portion of unamortized capitalized software development costs that are determined to be in excess of net realizable value have been expensed in the period in which such a determination is made. Subsequent to reaching technological feasibility for certain software products, we capitalized approximately $ March 31, 2021 Intangible assets with finite lives are amortized on a straight - line basis over the expected period to be benefited by future cash flows and reviewed for impairment. At both March 31, 2021 - lived intangible assets.

Recent Accounting Pronouncement

Recent Accounting Pronouncements3 Months Ended
Mar. 31, 2021
Recent Accounting Pronouncements [Abstract]
Recent Accounting PronouncementsNote B: Recent Accounting Pronouncements Accounting pronouncements recently adopted In August 2018, the FASB issued Accounting Standards Update (ASU) No. 2018-13, "Fair Value Measurements (Topic 820)." ASU 2018-13 eliminates, amends and adds disclosure requirements for fair value measurements. ASU 2018-13 is required to be adopted for annual periods beginning after December 15, 2019, including interim periods within that annual period, which is our fiscal year 2020. We adopted these changes as of January 1, 2020; however, there are no required changes that apply to our fair value measurements disclosures.

Fair Value Measurements

Fair Value Measurements3 Months Ended
Mar. 31, 2021
Fair Value Measurements [Abstract]
Fair Value MeasurementsNote C: Fair Value Measurements The guidance for fair value measurements establishes the authoritative definition of fair value, sets out a framework for measuring fair value and outlines the required disclosures regarding fair value measurements. Fair value is the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. We use a three
Level 1:
observable inputs such as quoted prices in active markets;
Level 2:
inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and
Level 3:
unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. Financial Instruments not Measured at Fair Value Certain of our financial instruments are not measured at fair value and are recorded at carrying amounts approximating fair value, based on their short-term nature or variable interest rate. These financial instruments include cash and cash equivalents, accounts receivable, accounts payable and other current financial assets and liabilities.

Inventories

Inventories3 Months Ended
Mar. 31, 2021
Inventories [Abstract]
InventoriesNote D: Inventories Inventories consisted of the following (in thousands):
March 31, 2021 December 31, 2020
Finished goods $ 736 $ 661
Components 93 109
Total $ 829 $ 770

Operating Leases

Operating Leases3 Months Ended
Mar. 31, 2021
Operating Leases [Abstract]
Operating LeasesNote E: Operating Leases
The Company is subject to various non-cancelable operating leases for office space and IT equipment expiring at various dates through November 2022. These leases do not have significant rent escalation, holidays, concessions, leasehold improvement incentives, or other build-out clauses. Further, the leases do not contain contingent rent provisions. Most of these leases include an Because most of our leases do not provide an implicit rate, we use our incremental borrowing rate in determining the present value of the lease payments. The incremental borrowing rate represents an estimate of the interest rate we would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of a lease. We used incremental borrowing rates as of January 1, 2019 for operating leases that commenced prior to that date. We have a centrally managed treasury function; therefore, based on the applicable lease terms and the current economic environment, we apply a portfolio approach for determining the incremental borrowing rate. The
Three-Month Periods Ended March 31,
2021 2020
Operating lease costs $ 55 $ 66
Variable lease cost 43 76
Total $ 98 $ 142 Variable lease costs consist primarily of property taxes, insurance, and common area or other maintenance costs for our leased facilities and equipment, which are paid based on actual costs incurred by the lessor. Maturities for our lease liabilities for all operating leases are as follows (in thousands) as of March 31, 2021:
Total
2021 $ 74
2022 8
2023 and thereafter —
Total lease payments 82
Less: Interest (1 )
Present value of lease liabilities $ 81 The weighted average remaining lease terms and discount rates for all of our operating leases were as follows as of March 31, 2021:
March 31, 2021
Remaining lease term and discount rate:
Weighted average remaining lease term (years) 0.59
Weighted average discount rate 4.75 % Cash paid for amounts included in the measurement of operating lease liabilities was $55,000 and $67,000 for the three months ended March 31, 2021 and 2020, respectively, and these amounts are included in operating activities in the condensed consolidated statements of cash flows. There were no

Intangible Assets

Intangible Assets3 Months Ended
Mar. 31, 2021
Intangible Assets [Abstract]
Intangible AssetsNote F: Intangible Assets Intangible assets consisted of the following (dollars in thousands):
March 31, 2021
Weighted
Gross
Net
Average
Carrying
Accumulated
Carrying
Useful Life
Amount
Amortization
Value
(in Years)
Wrong Way development costs
$
228
$
(228)
$


Vision development costs
3,052
(1,645)
1,407
8.0
Echo development costs
1,852
(308)
1,544
7.0
IntellitraffiQ development costs
468
(322)
146
4.0
Total
$
5,600
$
(2,503)
$
3,097
7.0
December 31, 2020
Weighted
Gross
Net
Average
Carrying
Accumulated
Carrying
Useful Life
Amount
Amortization
Value
(in Years)
Wrong Way development costs
$
228
$
(228
)
$


Vision development costs
2,929
(1,553
)
1,376
8.0
Echo development costs
1,852
(242 )
1,610
7.0
IntellitraffiQ development costs 468 (293 ) 175 4.0
Total
$
5,477
$
(2,316
)
$
3,161
7.3

Warranties

Warranties3 Months Ended
Mar. 31, 2021
Warranties [Abstract]
WarrantiesNote G: Warranties We generally provide a two three year Warranty liability and related activity consisted of the following (in thousands):
Three-Month Periods Ended March 31,
2021
2020
Beginning balance
$
141
$
313
Warranty provisions
12
7
Warranty claims
(7 )
(23
)
Adjustments to preexisting warranties
(13 )
(75
)
Currency
(3 )
(2 )
Ending balance
$
130
$
220

Stock-Based Compensation

Stock-Based Compensation3 Months Ended
Mar. 31, 2021
Stock-Based Compensation [Abstract]
Stock-Based CompensationNote H: Stock-Based Compensation We compensate officers, directors, key employees and consultants with stock-based compensation under the Image Sensing Systems, Inc. 2014 2014 three one nine Compensation expense, net of estimated forfeitures, is recognized ratably over the vesting period. Stock-based compensation expense included in general and administrative expense for the three-month periods ended March 31, 2021 and 2020 was $53,000 and $ 59,000, At March 31, 2021, 148,024 shares were available for grant under the Company's 2014 Stock Options A summary of the stock option activity for the first three 2021
Number of Shares Weighted Weighted Aggregate
Options outstanding at December 31, 2020 15,000 $ 4.76 2.94 $ 2,700
Granted — $ — — $ —
Exercised — $ — — $ —
Expired — $ — — $ —
Forfeited (1,000 ) $ 4.22 — $ 320
Options outstanding at March 31, 2021 14,000 $ 4.80 2.66 $ 2,611
Options exercisable at March 31, 2021 14,000 $ 4.80 2.66 $ 2,611 There were no stock options exercised or expired and options to purchase 1,000 shares were forfeited during the three-month period ended March 31, 2021, and there were no options exercised, expired, or forfeited during the three-month Restricted Stock Awards and Stock Awards Restricted stock awards are granted under the 2014 Plan at the discretion of the Compensation Committee of our Board of Directors. We issue restricted stock awards to executive officers and key consultants. These awards may contain certain performance conditions or time-based vesting criteria. The restricted stock awards granted to executive officers vest if the various performance or time-based metrics are met. Stock-based compensation is recognized for the number of awards expected to vest at the end of the period and is expensed beginning on the grant date through the end of the vesting period. At the time of vesting of the restricted stock awards, the recipients of common stock may request to receive a net of the number of shares required for employee withholding taxes, which can be withheld up to the relevant jurisdiction's maximum statutory rate. Compensation expense related to any stock awards issued to employees is determined on the grant date based on the publicly-quoted fair market value of our common stock and is charged to earnings on the grant date. We also issue stock awards as a portion of the annual retainer for each director on a quarterly basis. The stock awards are fully vested at the time of issuance.
The following table summarizes restricted stock award activity for the first three 2021
Number of
Weighted
Awards outstanding December 31, 2020
33,330
$
4.52
Granted
7,035
4.44
Vested
(21,555 )
4.20
Forfeited


Awards outstanding at March 31, 2021
18,810
$
4.86
As of March 31, 2021, the total stock-based compensation expense related to non-vested awards not yet recognized was $59,000, which is expected to be recognized over a weighted average period of 0.98 years. During the three-month periods ended March 31, 2021 and March 31, 2020, we recognized $53,000 and $59,000, respectively, of stock-based compensation expense related to restricted stock awards.

Income (loss) per Common Share

Income (loss) per Common Share3 Months Ended
Mar. 31, 2021
Income per Common Share [Abstract]
Income per Common ShareNote I: Income (loss) per Common Share Net income (loss) per share is computed by dividing net income (loss) by the daily weighted average number of common shares outstanding during the applicable periods. Diluted net income (loss) per share includes the potentially dilutive effect of common shares subject to outstanding stock options and restricted stock awards using the treasury stock method. Under the treasury stock method, shares subject to certain outstanding stock options and restricted stock awards have been excluded from the calculation of the diluted weighted average shares outstanding because the exercise of those options or the vesting of those restricted stock awards would lead to a net reduction in common shares outstanding. As a result, stock options and restricted stock awards to acquire 5,000 weighted common shares have been excluded from the diluted weighted shares outstanding for the three-month periods ended March 31, 2021 and 2020. A reconciliation of net income per share is as follows (in thousands, except per share data):
Three-Month Periods Ended March 31,
2021 2020
Numerator:
Net income (loss) $ 1,131 $ (111 )
Denominator:
Weighted average common shares outstanding 5,322 5,267
Dilutive potential common shares 20 —
Shares used in diluted net income (loss) per common share calculations 5,342 5,267
Basic net income (loss) per common share $ 0.21 $ (0.02 )
Diluted net income (loss) per common share $ 0.21 $ (0.02 )

Segment Information

Segment Information3 Months Ended
Mar. 31, 2021
Segment Information [Abstract]
Segment InformationNote J: Segment Information The Company's Chief Executive Officer and management regularly review financial information for the Company's discrete operating segments. Based on similarities in the economic characteristics, nature of products and services, production processes, type or class of customer served, method of distribution and regulatory environments, the operating segments have been aggregated for financial statement purposes and categorized into two Autoscope video is our machine-vision product line, and revenue consists of royalties (all of which are received from Econolite), as well as a portion of international product sales. Video products are normally sold in the Intersection segment. RTMS is our radar product line, and revenue consists of international and North American product sales. Radar products are normally sold in the Highway segment. All segment revenues are derived from external customers. Operating expenses and total assets are not allocated to the segments for internal reporting purposes. Due to the changes in how we manage our business, we may reevaluate our segment definitions in the future. The following table sets forth selected unaudited financial information for each of our reportable segments (in thousands):
Three Months Ended March 31,
Intersection Highway Total
2021 2020 2021 2020 2021 2020
Revenue $ 1,892 $ 2,250 $ 1,087 $ 909 $ 2,979 $ 3,159
Gross profit 1,724 2,069 549 467 2,273 2,536
Amortization of intangible assets 92 92 95 82 187 174
Intangible assets 1,407 1,651 1,690 2,071 3,097 3,722

Restructuring and Exit Activiti

Restructuring and Exit Activities3 Months Ended
Mar. 31, 2021
Restructuring and Exit Activities [Abstract]
Restructuring and Exit ActivitiesNote K: Restructuring and Exit Activities In the third quarter of 2016, in order to streamline our operating and cost structure, we initiated the closure of our wholly-owned subsidiaries, Image Sensing Systems HK Limited (ISS HK) in Hong Kong; Image Sensing Systems (Shenzhen) Limited (ISS WOFE) in China; Image Sensing Systems Europe Limited (ISS Europe) in the United Kingdom; Image Sensing Systems Europe Limited SP.Z.O.O (ISS Poland) in Poland; and Image Sensing Systems Germany, GmbH (ISS Germany) in Germany. At December 31, 2018, Image Sensing Systems Europe Limited and Image Sensing Systems Europe Limited SP.Z.O.O were fully closed. At December 31, 2019, Image Sensing Systems Germany, GmbH was fully closed. During 2020, we initiated the closure of Image Sensing Systems EMEA Limited (ISS UK) and Image Sensing Systems Holdings Limited (ISS Holdings). At March 31, 2021, Image Sensing Systems (Shenzhen) Limited was fully closed. We incurred $16,000 and $30,000 for these entities' closure costs in the three-month periods ended March 31, 2021 and March 31, 2020, respectively.

Commitments and Contingencies

Commitments and Contingencies3 Months Ended
Mar. 31, 2021
Commitments and Contingencies [Abstract]
Commitments and ContingenciesNote L: Commitments and Contingencies Debt Under the Paycheck Protection Program ("PPP"), the United States Small Business Administration ("SBA") approved the Company's application to receive a loan in the amount of $ 923,700 , 2020 The term of the PPP loan was 24 1.00 six Under the terms of the CARES Act, PPP loan recipients can apply for and be granted forgiveness for all or a portion of loans made under the PPP after 24 On February 2, 2021, the Company was notified by the Lender that the Lender had received payment in full of the PPP Loan from the United States government, and the Company's PPP Loan had been forgiven. The Company recognized the amount of the loan and accrued interest forgiven totaling approximately $931,000 as other non-operating income in the first quarter of 2021. The foregoing description of the Note does not purport to be complete and is qualified in its entirety by reference to the full text of the Note filed as Exhibit 10.1 with the Company’s Current Report on Form 8-K filed with the SEC on April 23, 2020 and incorporated herein by reference. Litigation We are involved from time to time in various legal proceedings arising in the ordinary course of our business, including primarily commercial, product liability, employment and intellectual property claims. In accordance with GAAP, we record a liability in our Consolidated Financial Statements with respect to any of these matters when it is both probable t one

Risks and Uncertainties

Risks and Uncertainties3 Months Ended
Mar. 31, 2021
Risks and Uncertainties [Abstract]
Risks and UncertaintiesNote M: Risks and Uncertainties In December 2019, the outbreak of a novel strain of coronavirus, called COVID-19, originated in Wuhan, China, and has since spread worldwide, including to the U.S. To date, the COVID-19 pandemic has caused widespread disruptions to the U.S. and global economy and has contributed to significant volatility and negative pressure in financial markets. The global impact of the outbreak is continually evolving and, as additional cases of the virus are identified, many countries, including the U.S., have reacted by instituting quarantines, restrictions on travel, and mandatory closures of businesses. Certain states and cities, including where we or the third parties with whom we engage operate, have also reacted by instituting quarantines, restrictions on travel, “stay at home” rules, restrictions on types of business that may continue to operate, and restrictions on the types of construction projects that may be undertaken. The extent to which the COVID-19 pandemic impacts our business, financial condition and results of operations will depend on future developments, which are highly uncertain and cannot be predicted with any confidence, including the scope, severity and duration of the pandemic; the actions taken to contain the pandemic or mitigate its impact, including the adoption, effectiveness, and availability of COVID-19 vaccines; the effect of any relaxation of current restrictions in the community and regions in which we, our customers and end users do business; and the direct and indirect economic effects of the pandemic and containment measures, among others. The rapid development and fluidity of this situation precludes any prediction as to the full adverse impact of the COVID-19 pandemic. Nevertheless, the COVID-19 pandemic has affected, and may continue to adversely affect, our business, financial condition and results of operations, and it has had, and probably will continue to have, the effect of exacerbating many of the risks described in our Annual Report on Form 10-K for the year ended December 31, 2020 including, but not limited to, the following:
We currently rely on third parties to, among other things, manufacture, supply and market our products and supply other goods and services to run our business. If any such third party is adversely impacted by restrictions resulting from the COVID-19 pandemic, including staffing shortages, production slowdowns, the closure of facilities, and disruptions in delivery systems, our supply chain may be disrupted, which could limit our ability to manufacture our products and conduct research and development. We have established a work-from-home policy for all employees, other than those who are performing or supporting business-critical operations or other essential activities. Our increased reliance on personnel working from home may negatively impact productivity or disrupt, delay or otherwise adversely impact our business. In addition, this could increase our cyber security risks, create data accessibility concerns, and make us more susceptible to communication disruptions, any of which could adversely impact our business operations or delay necessary interactions with governmental authorities, third party manufacturers and manufacturing sites, customers and end users, and other important agencies and third parties. The trading prices for our common stock have been highly volatile as a result of the COVID-19 pandemic. As a result, we may face difficulties raising capital through any sales of our common stock, or such sales may be on unfavorable terms. In addition, a recession, depression or other sustained adverse market event resulting from the COVID-19 pandemic could materially and adversely affect our business and the value of our common stock.

Basis of Presentation (Policies

Basis of Presentation (Policies)3 Months Ended
Mar. 31, 2021
Basis of Presentation [Abstract]
Revenue RecognitionRevenue Recognition We recognize revenue when control of the promised goods or services is transferred to customers in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services.
We determine revenue recognition through the following steps:
● Identification of a contract, or contracts, with a customer;
● Identification of performance obligations in the contract;
● Determination of the transaction price;
● Allocation of the transaction price to the performance obligations in the contract; and
● Recognition of revenue when, or as, we satisfy a performance obligation. Revenue disaggregated by revenue source for the three months ended March 31, 2021 and 2020 consists of the following (in thousands); revenue excludes sales and usage-based taxes when or if it has been determined that we are acting as a pass-through agent:
Three Months Ended March 31,
2021 2020
Product sales $ 1,163 $ 1,050
Royalties 1,816 2,109
Total revenue $ 2,979 $ 3,159
Product Sales: Product revenue is generated primarily from the direct sales of our RTMS radar systems worldwide and our Autoscope video systems in Europe and Asia. Revenue is recognized when control of the promised goods or services is transferred to our customers in an amount that reflects the amount we expect to receive in exchange for those goods or services. Certain product sales may contain multiple performance obligations for revenue recognition purposes. Multiple performance obligations may include hardware, software, installation services, training, support, and extended warranties. For performance obligations without observable stand-alone prices charged to customers Revenue for services such as maintenance, repair, and technical support is recognized either as the service is performed or ratably over the defined contractual period for service maintenance contracts. From time to time, our payment terms may vary by the type and location of our customer and the products or services offered. Revenue for extended warranties are deferred until the coverage period and then recognized ratably over the extended warranty term. We record deferred revenues when cash payments are received or due in advance of our performance, including amounts which are refundable. We record provisions against sales revenue for estimated returns and allowances in the period when the related revenue is recorded based on historical sales returns and changes in end user demand. Royalties: Econolite Control Products, Inc. (“Econolite”) is our licensee that sells our Autoscope video system products in the United States, Mexico, Canada and the Caribbean. The royalty of approximately 50% of the gross profit on licensed products is recognized when the products are shipped or delivered by Econolite to its customers. Practical Expedients and Exemptions: We generally expense sales commissions when incurred because the amortization periods would have been one year We do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year
InventoriesInventories Inventories are primarily electronic components and finished goods and are valued at the lower of cost or net realizable value determined under the first-in, first-out accounting method.
Income TaxesIncome Taxes We record a tax provision for the anticipated tax consequences of our reported results of operations. Deferred tax assets and liabilities are measured using the currently enacted tax rates that apply to taxable income in effect for the years in which those deferred tax assets and liabilities are expected to be realized or settled. We record a valuation allowance to reduce deferred tax assets to the amount that is believed more likely than not to be realized. We believe it is more likely than not that forecasted income, including income that may be generated as a result of certain tax planning strategies, together with the tax effects of the deferred tax liabilities, will be sufficient to fully recover the remaining net realizable value of our deferred tax assets. If all or part of the net deferred tax assets are determined not to be realizable in the future, an adjustment to the valuation allowance would be charged to earnings in the period such determination is made. In addition, the calculation of tax liabilities involves significant judgment in estimating the impact of uncertainties in the application of complex tax laws. Resolution of these uncertainties in a manner inconsistent with management’s expectations could have a material impact on our financial condition and operating results. We recognize penalties and interest expense related to unrecognized tax benefits in income tax expense.
Intangible AssetsIntangible Assets We capitalize certain software development costs related to software to be sold, leased, or otherwise marketed. Capitalized software development costs include purchased materials, services, internal labor and other costs associated with the development of new products and services. Software development costs are expensed as incurred until technological feasibility has been established, at which time future costs incurred are capitalized until the product is available for general release to the public. Based on our product development process, technological feasibility is generally established once product and detailed program designs have been completed, uncertainties related to high-risk development issues have been resolved through coding and testing, and we have established that the necessary skills, hardware, and software technology are available for production of the product. Once a software product is available for general release to the public, capitalized development costs associated with that product will begin to be amortized to cost of sales over the product's estimated economic selling life, using the greater of straight-line or a method that results in cost recognition in future periods that is consistent with the anticipated timing of product revenue recognition. Capitalized software development costs are subject to an ongoing assessment of recoverability, which is impacted by estimates and assumptions of future revenues and expenses for these software products, as well as other factors such as changes in product technologies. Any portion of unamortized capitalized software development costs that are determined to be in excess of net realizable value have been expensed in the period in which such a determination is made. Subsequent to reaching technological feasibility for certain software products, we capitalized approximately $ March 31, 2021 Intangible assets with finite lives are amortized on a straight - line basis over the expected period to be benefited by future cash flows and reviewed for impairment. At both March 31, 2021 - lived intangible assets.

Basis of Presentation (Tables)

Basis of Presentation (Tables)3 Months Ended
Mar. 31, 2021
Basis of Presentation [Abstract]
Schedule of revenue disaggregated by revenue sourceRevenue disaggregated by revenue source for the three months ended March 31, 2021 and 2020 consists of the following (in thousands); revenue excludes sales and usage-based taxes when or if it has been determined that we are acting as a pass-through agent:
Three Months Ended March 31,
2021 2020
Product sales $ 1,163 $ 1,050
Royalties 1,816 2,109
Total revenue $ 2,979 $ 3,159

Inventories (Tables)

Inventories (Tables)3 Months Ended
Mar. 31, 2021
Inventories [Abstract]
Schedule of InventoriesInventories consisted of the following (in thousands):
March 31, 2021 December 31, 2020
Finished goods $ 736 $ 661
Components 93 109
Total $ 829 $ 770

Operating Leases (Tables)

Operating Leases (Tables)3 Months Ended
Mar. 31, 2021
Operating Leases [Abstract]
Schedule of components of our costs for operating leasesThe
Three-Month Periods Ended March 31,
2021 2020
Operating lease costs $ 55 $ 66
Variable lease cost 43 76
Total $ 98 $ 142
Schedule of the future maturities of lease liabilitiesMaturities for our lease liabilities for all operating leases are as follows (in thousands) as of March 31, 2021:
Total
2021 $ 74
2022 8
2023 and thereafter —
Total lease payments 82
Less: Interest (1 )
Present value of lease liabilities $ 81
Remaining lease term and discount rateThe weighted average remaining lease terms and discount rates for all of our operating leases were as follows as of March 31, 2021:
March 31, 2021
Remaining lease term and discount rate:
Weighted average remaining lease term (years) 0.59
Weighted average discount rate 4.75 %

Intangible Assets (Tables)

Intangible Assets (Tables)3 Months Ended
Mar. 31, 2021
Intangible Assets [Abstract]
Schedule of intangible assetsIntangible assets consisted of the following (dollars in thousands):
March 31, 2021
Weighted
Gross
Net
Average
Carrying
Accumulated
Carrying
Useful Life
Amount
Amortization
Value
(in Years)
Wrong Way development costs
$
228
$
(228)
$


Vision development costs
3,052
(1,645)
1,407
8.0
Echo development costs
1,852
(308)
1,544
7.0
IntellitraffiQ development costs
468
(322)
146
4.0
Total
$
5,600
$
(2,503)
$
3,097
7.0
December 31, 2020
Weighted
Gross
Net
Average
Carrying
Accumulated
Carrying
Useful Life
Amount
Amortization
Value
(in Years)
Wrong Way development costs
$
228
$
(228
)
$


Vision development costs
2,929
(1,553
)
1,376
8.0
Echo development costs
1,852
(242 )
1,610
7.0
IntellitraffiQ development costs 468 (293 ) 175 4.0
Total
$
5,477
$
(2,316
)
$
3,161
7.3

Warranties (Tables)

Warranties (Tables)3 Months Ended
Mar. 31, 2021
Warranties [Abstract]
Warranty liability and related activityWarranty liability and related activity consisted of the following (in thousands):
Three-Month Periods Ended March 31,
2021
2020
Beginning balance
$
141
$
313
Warranty provisions
12
7
Warranty claims
(7 )
(23
)
Adjustments to preexisting warranties
(13 )
(75
)
Currency
(3 )
(2 )
Ending balance
$
130
$
220

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)3 Months Ended
Mar. 31, 2021
Stock-Based Compensation [Abstract]
Schedule of stock option activityA summary of the stock option activity for the first three 2021
Number of Shares Weighted Weighted Aggregate
Options outstanding at December 31, 2020 15,000 $ 4.76 2.94 $ 2,700
Granted — $ — — $ —
Exercised — $ — — $ —
Expired — $ — — $ —
Forfeited (1,000 ) $ 4.22 — $ 320
Options outstanding at March 31, 2021 14,000 $ 4.80 2.66 $ 2,611
Options exercisable at March 31, 2021 14,000 $ 4.80 2.66 $ 2,611
Table summarizes restricted stock award activityThe following table summarizes restricted stock award activity for the first three 2021
Number of
Weighted
Awards outstanding December 31, 2020
33,330
$
4.52
Granted
7,035
4.44
Vested
(21,555 )
4.20
Forfeited


Awards outstanding at March 31, 2021
18,810
$
4.86

Income (loss) per Common Share

Income (loss) per Common Share (Tables)3 Months Ended
Mar. 31, 2021
Income per Common Share [Abstract]
Schedule of reconciliation of net income per shareA reconciliation of net income per share is as follows (in thousands, except per share data):
Three-Month Periods Ended March 31,
2021 2020
Numerator:
Net income (loss) $ 1,131 $ (111 )
Denominator:
Weighted average common shares outstanding 5,322 5,267
Dilutive potential common shares 20 —
Shares used in diluted net income (loss) per common share calculations 5,342 5,267
Basic net income (loss) per common share $ 0.21 $ (0.02 )
Diluted net income (loss) per common share $ 0.21 $ (0.02 )

Segment Information (Tables)

Segment Information (Tables)3 Months Ended
Mar. 31, 2021
Segment Information [Abstract]
Schedule of financial information by reportable segmentThe following table sets forth selected unaudited financial information for each of our reportable segments (in thousands):
Three Months Ended March 31,
Intersection Highway Total
2021 2020 2021 2020 2021 2020
Revenue $ 1,892 $ 2,250 $ 1,087 $ 909 $ 2,979 $ 3,159
Gross profit 1,724 2,069 549 467 2,273 2,536
Amortization of intangible assets 92 92 95 82 187 174
Intangible assets 1,407 1,651 1,690 2,071 3,097 3,722

Basis of Presentation (Details

Basis of Presentation (Details Narrative) - USD ($)3 Months Ended
Mar. 31, 2021Mar. 31, 2020Apr. 28, 2021
Royalty percentage of gross profit on licensed products50.00%
Amortization period for expense sales commissions incurred, maximum1 year
Period for the value of unsatisfied performance obligations which are not disclosed1 year
Software development costs capitalized $ 123,000 $ 22,000
Impairment of intangible assets0
Indefinite‑lived intangible assets $ 0
Subsequent Event [Member]
Amount of cash dividend payable to shareholders (in dollars per share) $ 0.12

Basis of Presentation (Detail_2

Basis of Presentation (Details 2) - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Total Revenue $ 2,979 $ 3,159
Product sales [Member]
Total Revenue1,163 1,050
Royalties [Member]
Total Revenue $ 1,816 $ 2,109

Inventories (Details)

Inventories (Details) - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020
Inventories [Abstract]
Finished goods $ 736 $ 661
Components93 109
Total $ 829 $ 770

Operating Leases (Details)

Operating Leases (Details) - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Operating Leases [Abstract]
Operating lease cost $ 55 $ 66
Variable lease cost43 76
Total $ 98 $ 142

Operating Leases (Details 2)

Operating Leases (Details 2) $ in ThousandsMar. 31, 2021USD ($)
Operating Leases [Abstract]
2021 $ 74
20228
2023 and thereafter0
Total lease payments82
Less: Interest(1)
Present value of lease liabilities $ 81

Operating Leases (Details 3)

Operating Leases (Details 3)Mar. 31, 2021
Remaining lease term and discount rate:
Weighted average remaining lease term (years)7 months 2 days
Weighted average discount rate4.75%

Operating Leases (Narrative) (D

Operating Leases (Narrative) (Details) - USD ($)3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Operating Leases [Abstract]
Cash paid operating lease costs $ 55,000 $ 67,000

Intangible Assets (Details)

Intangible Assets (Details) - USD ($) $ in Thousands3 Months Ended12 Months Ended
Mar. 31, 2021Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount $ 5,600 $ 5,477
Accumulated Amortization(2,503)(2,316)
Net Carrying Value $ 3,097 $ 3,161
Weighted Average Useful Life7 years7 years 3 months 18 days
Wrong Way development costs [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount $ 228 $ 228
Accumulated Amortization(228)(228)
Net Carrying Value0 0
Vision development costs [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount3,052 2,929
Accumulated Amortization(1,645)(1,553)
Net Carrying Value $ 1,407 $ 1,376
Weighted Average Useful Life8 years8 years
Echo development costs [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount $ 1,852 $ 1,852
Accumulated Amortization(308)(242)
Net Carrying Value $ 1,544 $ 1,610
Weighted Average Useful Life7 years7 years
IntellitraffiQ development costs [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount $ 468 $ 468
Accumulated Amortization(322)(293)
Net Carrying Value $ 146 $ 175
Weighted Average Useful Life4 years4 years

Warranties (Details)

Warranties (Details) - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Product Warranty Liability [Line Items]
Beginning balance $ 141 $ 313
Warranty provisions12 7
Warranty claims(7)(23)
Adjustments to preexisting warranties(13)(75)
Currency(3)(2)
Ending balance $ 130 $ 220
Minimum [Member]
Product Warranty Liability [Line Items]
Product Warranty Period2 years
Maximum [Member]
Product Warranty Liability [Line Items]
Product Warranty Period3 years

Stock-Based Compensation (Detai

Stock-Based Compensation (Details Narrative) - USD ($)3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense $ 53,000 $ 59,000
Shares available for grant148,024
Stock option exercised0 0
Options forfeited1,000
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option awards, vesting term3 years
Stock option awards, contractual term9 years
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option awards, vesting term5 years
Stock option awards, contractual term10 years
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense $ 0 $ 0
Unrecognized compensation cost related to non-vested stock awards $ 0
Stock option exercised0
Options forfeited1,000
Restricted Stock Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense $ 53,000 $ 59,000
Unrecognized compensation cost related to non-vested stock awards $ 59,000
Period for recognition of unrecognized compensation cost related to non-vested stock awards11 months 23 days
Vesting rights description of stock awards grantedThe restricted stock awards granted to executive officers vest if the various performance or time-based metrics are met.

Stock-Based Compensation (Det_2

Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands3 Months Ended12 Months Ended
Mar. 31, 2021Mar. 31, 2020Dec. 31, 2020
Number of Shares
Outstanding - beginning of period15,000
Granted0
Exercised0 0
Expired0
Forfeited(1,000)
Outstanding - end of period14,000 15,000
Exercisable - end of period14,000
Weighted Average Exercise Price per Share
Outstanding - beginning of period $ 4.76
Granted0
Exercised0
Expired0
Forfeited4.22
Outstanding - end of period4.80 $ 4.76
Exercisable - end of period $ 4.80
Weighted Average Remaining Contractual Term
Options outstanding2 years 7 months 28 days2 years 11 months 8 days
Options exercisable2 years 7 months 28 days
Aggregate Intrinsic Value
Outstanding - beginning of period $ 2,700
Granted0
Exercised0
Expired0
Forfeited320
Outstanding - end of period2,611 $ 2,700
Options exercisable $ 2,611

Stock-Based Compensation (Det_3

Stock-Based Compensation (Details 2)3 Months Ended
Mar. 31, 2021$ / sharesshares
Number of Shares
Awards outstanding at beginning of year | shares33,330
Granted | shares7,035
Vested | shares(21,555)
Forfeited | shares0
Awards outstanding at end of year | shares18,810
Weighted Average grant date fair value
Outstanding at beginning of year | $ / shares $ 4.52
Granted | $ / shares4.44
Vested | $ / shares4.20
Forfeited | $ / shares0
Outstanding at end of year | $ / shares $ 4.86

Income (loss) per Common Shar_2

Income (loss) per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Numerator:
Net income (loss) $ 1,131 $ (111)
Denominator:
Weighted average common shares outstanding5,322 5,267
Dilutive potential common shares20 0
Shares used in diluted net income (loss) per common share calculations5,342 5,267
Basic net income (loss) per common share $ 0.21 $ (0.02)
Diluted net income (loss) per common share $ 0.21 $ (0.02)

Segment Information (Details)

Segment Information (Details) $ in Thousands3 Months Ended
Mar. 31, 2021USD ($)Mar. 31, 2020USD ($)
Segment Reporting Information [Line Items]
Number of Reportable Segments2
Revenue $ 2,979 $ 3,159
Gross profit2,273 2,536
Amortization of intangible assets187 174
Intangible assets3,097 3,722
Intersection [Member]
Segment Reporting Information [Line Items]
Revenue1,892 2,250
Gross profit1,724 2,069
Amortization of intangible assets92 92
Intangible assets1,407 1,651
Highway [Member]
Segment Reporting Information [Line Items]
Revenue1,087 909
Gross profit549 467
Amortization of intangible assets95 82
Intangible assets $ 1,690 $ 2,071

Restructuring and Exit Activi_2

Restructuring and Exit Activities (Details Narrative) - USD ($)3 Months Ended
Mar. 31, 2021Mar. 31, 2020
ISS UK and ISS Holdings [Member]
Restructuring Cost and Reserve [Line Items]
Entity closures cost $ 16,000 $ 30,000

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($)3 Months Ended
Mar. 31, 2021Mar. 31, 2020Apr. 21, 2020
Commitments and Contingencies
Amount of the loan and accrued interest forgiven $ 931,000 $ 0
Paycheck Protection Program [Member]
Commitments and Contingencies
Amount of loan $ 923,700
Term of PPP loan24 months
Annual interest rate on PPP loan1.00%
Amount of the loan and accrued interest forgiven $ 931,000