XML 105 R19.htm IDEA: XBRL DOCUMENT v2.4.0.8
BANK DEBT AND OTHER DEBT
 12 Months Ended
Dec. 31, 2013
BANK DEBT AND OTHER DEBT [Abstract]  
Bank Debt and Other Debt
BANK DEBT AND OTHER DEBT
 
(a)
Lines of credit

The Company's DSIT subsidiary has lines-of-credit of approximately $1,152 from two Israeli banks (approximately $576 at each bank), $185 of which was being used at December 31, 2013.  The lines-of-credit are subject to certain financial covenants. DSIT was in compliance with its financial covenants at December 31, 2013. The line-of-credit at one bank expires in December 2014 and at the second bank the line expires in August 2014. The lines-of-credit are denominated in NIS and bear interest at a weighted average rate of the Israeli prime rate per annum plus 3.04%. The Israeli prime rate as of December 31, 2013 was 2.5% (December 31, 2012, 3.25%).

The Company's GridSense subsidiary has a line-of-credit of $1,500 (subject to a calculated borrowing base) from a local bank of which $958 was being used at December 31, 2013.  The line-of-credit is subject to certain covenants. GridSense was in compliance with its covenants at December 31, 2013. The line-of-credit expires on June 30, 2014. Advances from the line-of-credit bears interest at a variable annual interest rate equal to the greater of 3.25% above the Prime Rate in effect (3.25% at December 31, 2013) or 6.50%.

The Company's USSI subsidiary has a line-of-credit of $1,500 from a local bank of which $1,160 was being used at December 31, 2013.  Upon achieving a revenue milestone, the line-of-credit will increase to $2,000. The line-of-credit is subject to certain financial covenants. USSI was in compliance with its financial covenants at December 31, 2013. The line-of-credit expires on November 20, 2014. Advances from the line-of-credit bears interest at a variable annual interest rate equal to the greater of 1.0% above the Prime Rate in effect (3.25% at December 31, 2013) or 6.50%.

(b)
Bank Debt

In December 2009, the Company's DSIT subsidiary took a loan from an Israeli bank in the amount of $530. The loan was denominated in NIS and bore interest at the rate of the Israeli prime rate per annum plus 0.9%. The loan balance of $143 was repaid in full during 2013.

(c)
Other Debt

During 2010, the CEO and a director of the Company’s GridSense subsidiary lent GridSense $50 and $75, respectively. The loan from the director bears interest at 8% per year while the loan from the CEO bears no interest. During 2010, $12 was repaid to GridSense’s CEO while no repayments were made to the director. During 2011, the remaining $38 was paid to the CEO and $65 of principal and $1 of interest was paid to the director. The remaining $10 due to the director was paid in 2012.

(d)
Debt summary
 
 
As of December 31,
 
 
2012
 
2013
Lines of credit
 
—

 
2,303

Bank debt
 
143

 
—

Capital lease obligations
 
10

 
—

Total debt
 
153

 
2,303

Less: Lines-of-credit
 
—

 
(2,303
)
Less: Current portion of debt
 
(153
)
 
—

Long-term debt
 
—

 
—


 
With respect to DSIT’s line-of-credit (see (a) above), a lien in favor of the Israeli bank was placed on DSIT’s assets.  In addition, the Company has guaranteed DSIT’s line-of-credit.

Both USSI and GridSense have individually granted liens to their respective banks on substantially all of their assets other than intellectual property.  They have further promised not to grant a lien on their intellectual property to any other party, nor commit to any such party to abstain from giving a lien. In addition, the Company has guaranteed GridSense's credit line.