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Note 6 - Property and Equipment, Net

12 Months Ended

Dec. 31, 2025

Notes to Financial Statements

Property, Plant and Equipment Disclosure [Text Block]

NOTE 6 – PROPERTY AND EQUIPMENT, NET

Property and equipment, net consisted of the following (dollars in thousands):

		*December 31,*
		*2025*				*2024*
Furniture and fixtures		$	1,778			$	1,966
Office equipment			7,306				7,022
Roadway monitoring systems placed in service			6,359				4,824
Vehicles			2,839				2,758
Leasehold improvements			3,254				4,513
Roadway monitoring systems not yet placed in service			252				185
Total		$	21,788			$	21,268
Less: accumulated depreciation			(13,156	)			(10,220	)
Property and equipment, net		$	8,632			$	11,048

Depreciation related to property and equipment, net for the years ended December 31, 2025 and 2024 was $3,835,000 and $3,879,000, respectively, and is presented as part of depreciation and amortization in the accompanying consolidated statements of operations.

Information about the Company’s total assets in different geographic regions is as follows (dollars in thousands):

		*December 31,*
		*2025*				*2024*
United States		$	21,788			$	19,589
Other			-				1,679
Accumulated depreciation			(13,156	)			(10,220	)
Total property and equipment, net		$	8,632			$	11,048

In December 2025, the Company determined that the operations of its wholly owned subsidiary, Waycare Technologies LTD, located in Tel Aviv, Israel, were no longer sustainable given the entity's operating cost structure. The Company initiated a plan to wind down the Tel Aviv operations and consolidate all engineering functions into its U.S. facilities. The closure was announced to employees on February 23, 2026, and Tel Aviv operations ceased on February 24, 2026. The Command product line and all associated intellectual property, customer relationships, and operations continue in the United States. The closure does not qualify for discontinued operations reporting under ASC 205-20.

As a result of the decision to close the Tel Aviv office, the Company identified a triggering event requiring an impairment assessment of the related long-lived assets, consisting of property and equipment (primarily leasehold improvements, furniture, and equipment) and the operating lease ROU asset associated with the Tel Aviv office lease. The Company determined that the undiscounted future cash flows expected from the use and eventual disposition of these assets were less than their carrying amounts, and accordingly, the assets were written down to their estimated fair values. The Company estimated that the fair values of the property and equipment and the ROU asset were approximately $0, based on the expected abandonment of these assets with no material residual or sublease value (a Level 3 fair value measurement).

The Company recognized total impairment charges of $3,754,000 during the year ended December 31, 2025, consisting of $1,046,000 related to property and equipment and $2,708,000 related to the operating lease ROU asset. These impairment charges are included in asset impairment charges in the consolidated statements of operations.