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Discontinued Operations
 6 Months Ended
Jun. 30, 2015
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations

NOTE 5—Discontinued Operations

 

In early 2015, the Company’s Board of Directors decided that it would no longer continue to fund USSI’s activities following the 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.

 

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

 

    As of  
    December 31, 2014   June 30, 2015  
Cash and cash equivalents   $ 52   $ 4  
Other current assets     91     —  
Total assets   $ 143   $ 4  
               
Short-term bank credit   $ 1,460   $ 1,460  
Accounts payable     1,006     1,024  
Accrued payroll, payroll taxes and social benefits     346     136  
Other current liabilities     1,881     1,785  
Total liabilities   $ 4,693   $ 4,405  


 

USSI has granted a lien to its bank on substantially all of its assets including intellectual property. The debt due to the bank under USSI’s line-of-credit ($1,460) has matured, is currently due and is bearing interest at the default rate of 11.5% per annum. The Company has not guaranteed the line-of-credit.

 

USSI’s losses for the three and six months ended June 30, 2014 and 2015 are included in “Loss from discontinued operations, net of income taxes” in the Company’s Condensed Consolidated Statements of Operations. Summarized financial information for USSI’s operations for the three and six months ended June 30, 2014 and 2015 are presented below:

 

    Six months ended June 30,     Three months ended June 30,  
    2014     2015     2014     2015  
Revenues   $ —     $ 79     $ —     $ 79  
Gross profit   $ (430 )   $ (86 )   $ (242 )   $ 4  
                                 
Net loss   $ (4,194 )   $ (1,381 )   $ (2,238 )   $ (229 )
Net loss attributable to non-controlling interests   $ 527     $ 175     $ 281     $ 31  
Net loss attributable to Acorn Energy Inc.   $ (3,667 )   $ (1,206 )   $ (1,957 )   $ (198 )