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Discontinued Operations
 12 Months Ended
Dec. 31, 2014
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations

NOTE 3—Discontinued Operations

 

The Company’s Board of Directors recently decided that it would no longer continue to fund USSI’s activities following the recent significant decline in oil prices which led to significantly reduced demand for USSI’s products. USSI has suspended operations and terminated substantially all employees. The Company intends to sell its USSI assets and is exploring ways to maximize value for creditors and other stakeholders, expecting that most of the proceeds from any sale of its assets will be used to pay creditors. It is uncertain whether there will be any proceeds available to Acorn Energy or other USSI shareholders.

 

As the Company is uncertain as to whether it will ultimately be able to realize any value from USSI’s assets, it has accordingly taken charges on USSI’s inventory ($4,935), fixed assets ($969), goodwill ($1,402) and other intangibles ($2,034) at December 31, 2014. Earlier in 2014, USSI had taken inventory charges totaling $1,055. During 2013, USSI’s losses included an inventory impairment charge of $958 and a provision of $800 with respect to the sensor systems built-to-lease. Previously, USSI’s activities comprised the Company’s Oil & Gas Sensor Systems segment.

 

Assets and liabilities related to the discontinued operations of USSI are as follows:

 

    December 31,  
    2013     2014  
             
Cash and cash equivalents   $ 748     $ 52  
Inventory     2,279       —  
Other current assets     149       91  
Total current assets     3,176       143  
Property and equipment, net     1,286       —  
Intangible assets, net     2,184       —  
Goodwill     1,402       —  
Other assets     33       —  
Total assets   $ 8,081     $ 143  
                 
Short-term bank credit   $ 1,160     $ 1,460  
Accounts payable     1,141       1,006  
Accrued payroll, payroll taxes and social benefits     499       346  
Other current liabilities     1,090       1,881  
Total liabilities   $ 3,890     $ 4,693  

 

USSI has granted a lien to its bank on substantially all of its assets including intellectual property. The debt due to the bank ($1,460) has matured, is currently due and is bearing interest at the default rate of 5% per annum. See Note 21.

 

USSI’s losses for the years ended December 31, 2013 and 2014 are included in “Loss from discontinued operations, net of income taxes” in the Company’s Consolidated Statements of Income. Summarized financial information for USSI’s operations for the years ended December 31, 2013 and 2014 are presented below:

 

    Year ended
December 31,		  
    2013     2014  
Revenues   $ 1,468     $ 556  
Gross profit   $ (2,347 )   $ (1,043 )
                 
Net loss   $ (9,647 )   $ (19,140 )
Net loss attributable to non-controlling interests     1,213       2,407  
Net loss attributable to Acorn Energy Inc.   $ (8,434 )   $ (16,733 )

 

During the third quarter of 2014, USSI decided to restructure its operations to better align expenses with revenues following a change in its management. The restructuring involved employee severance and termination benefits ($88). USSI’s losses for 2014 include the write-off of assets noted above as well as provisions for remaining minimum contractual lease and royalty payments ($775) and severance ($91).