The following table sets forth certain of the Company's unaudited quarterly consolidated financial information for the years ended December 31, 2011 and 2012.



	2011												2012
	First Quarter			Second Quarter			Third Quarter			Fourth Quarter			First Quarter*			Second Quarter*			Third Quarter*			Fourth Quarter
	(in thousands, except per share amounts)
Revenues	$	3,095		$	4,107		$	5,051		$	6,675		$	4,183		$	5,727		$	4,713		$	4,796
Cost of sales	1,921			2,760			3,244			4,090			2,983			4,241			3,225			3,767
Gross profit	1,174			1,347			1,807			2,585			1,200			1,486			1,488			1,029
Research and development expenses, net	490			384			713			1,408			1,318			1,699			1,754			1,819
Selling, general and administrative expenses	2,743			2,724			3,142			3,343			4,229			4,390			5,272			5,470
Operating loss	(2,059		)	(1,761		)	(2,048		)	(2,166		)	(4,347		)	(4,603		)	(5,538		)	(6,260		)
Finance income (expense), net	(117		)	(100		)	262			(71		)	(23		)	130			(160		)	110
Gain on sale of HangXing	492			—			—			—			—			—			—			—
Income (loss) before taxes on income	(1,684		)	(1,861		)	(1,786		)	(2,237		)	(4,370		)	(4,473		)	(5,698		)	(6,150		)
Income tax benefit (expense)	(65		)	26			12,111			695			(75		)	1,064			1,487			480
Net income (loss) from continuing operations	(1,749		)	(1,835		)	10,325			(1,542		)	(4,445		)	(3,409		)	(4,211		)	(5,670		)
Gain on the sale of CoaLogix, net of income taxes	—			—			30,683			386			—			—			—			—
Loss from discontinued operations, net of income taxes	(836		)	(568		)	(544		)	—			—			—			—			—
Non-controlling interests share of loss from discontinued operations	232			157			151			—			—			—			—			—
Net income (loss)	(2,353		)	(2,246		)	40,615			(1,156		)	(4,445		)	(3,409		)	(4,211		)	(5,670		)
Net (income) loss attributable to non-controlling interests	136			167			181			65			256			205			276			287
Net income (loss) attributable to Acorn Energy, Inc	$	(2,217	)	$	(2,079	)	$	40,796		$	(1,091	)	$	(4,189	)	$	(3,204	)	$	(3,935	)	$	(5,383	)
Basic net income (loss) per share attributable to Acorn Energy, Inc. shareholders:
From continuing operations	$	(0.10	)	$	(0.10	)	$	0.60		$	(0.08	)	$	(0.24	)	$	(0.18	)	$	(0.22	)	$	(0.30	)
From discontinued operations	(0.03		)	(0.02		)	1.73			0.02			—			—			—			—
Total attributable to Acorn Energy, Inc. shareholders.	$	(0.13	)	$	(0.12	)	$	2.33		$	(0.06	)	$	(0.24	)	$	(0.18	)	$	(0.22	)	$	(0.30	)
Diluted net income (loss) per share attributable to Acorn Energy, Inc. shareholders:
From continuing operations	$	(0.10	)	$	(0.10	)	$	0.59		$	(0.08	)	$	(0.24	)	$	(0.18	)	$	(0.22	)	$	(0.30	)
From discontinued operations	(0.03		)	(0.02		)	1.70			0.02			—			—			—			—
Total attributable to Acorn Energy, Inc. shareholders.	$	(0.13	)	$	(0.12	)	$	2.29		$	(0.06	)	$	(0.24	)	$	(0.18	)	$	(0.22	)	$	(0.30	)
Weighted average number of shares outstanding attributable to Acorn Energy, Inc. – basic	17,449			17,489			17,508			17,521			17,680			17,912			17,934			18,038
Weighted average number of shares outstanding attributable to Acorn Energy, Inc. – diluted	17,449			17,489			17,810			17,521			17,680			17,912			17,934			18,038