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Segment Reporting and Geographic Information | 12 Months Ended
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Dec. 31, 2015
Segment Reporting [Abstract] |
Segment Reporting and Geographic Information | NOTE 19—SEGMENT REPORTING AND GEOGRAPHIC INFORMATION (a) General Information As of December 31, 2015, the Company’s operations are based upon three operating segments:
| ● | Energy & Security Sonar Solutions. We provide sonar and acoustic related solutions for energy, defense and commercial markets with a focus on underwater site security for strategic energy installations and other advanced acoustic systems and real-time embedded hardware and software development and production through our DSIT Solutions Ltd. ("DSIT") subsidiary.
| ● | Smart Grid Distribution Automation. These products and services are provided by our GridSense Inc. subsidiary ("GridSense") which develops, market and sell remote monitoring and control systems to electric utilities and industrial facilities worldwide.
| ● | Machine-to-Machine Critical Asset Monitoring & Control ("M2M") (formerly Power Generation Monitoring). The M2M segment provides wireless remote monitoring and control systems and services for critical assets as well as Internet of Things applications. These activities are performed through the Company's OmniMetrix subsidiary.
During 2015, each of the abovementioned activities represented a reportable segment. In addition, our “Other” segment represents certain IT activities (protocol management software for cancer patients and billing software) and outsourced consulting activities performed by our DSIT subsidiary as well as PM activities (for remote monitoring of cathodic protection systems on gas pipelines for gas utilities and pipeline companies) in our OmniMetrix subsidiary, that do not meet the quantitative thresholds and which may be combined for reporting under applicable accounting principles. The Company’s reportable segments are strategic business units, offering different products and services and are managed separately as each business requires different technology and marketing strategies. Similar operating segments are aggregated into one reportable segment. (b) Information about Profit or Loss and Assets The accounting policies of all the segments are those described in the summary of significant accounting policies. The Company evaluates performance based on net income or loss before taxes. The Company does not systematically allocate assets to the divisions of the subsidiaries constituting its consolidated group, unless the division constitutes a significant operation. Accordingly, where a division of a subsidiary constitutes a segment that does not meet the quantitative thresholds of applicable accounting principles, depreciation expense is recorded against the operations of such segment, without allocating the related depreciable assets to that segment. However, where a division of a subsidiary constitutes a segment that does meet the quantitative thresholds, related depreciable assets, along with other identifiable assets, are allocated to such division. The following tables represent segmented data for the years ended December 31, 2015 and 2014:
|  | Energy & Security Sonar Solutions |  |  | GridSense |  |  | M2M |  |  | Other |  |  | Total |
Year ended December 31, 2015: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues from external customers |  | $ | 12,093 |  |  | $ | 2,507 |  |  | $ | 2,513 |  |  | $ | 1,942 |  |  | $ | 19,055 |
Intersegment revenues |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Segment gross profit |  |  | 3,834 |  |  |  | 20 |  |  |  | 1,472 |  |  |  | 861 |  |  |  | 6,187 |
Impairment of goodwill and intangibles |  |  | — |  |  |  | 1,562 |  |  |  | — |  |  |  | — |  |  |  | 1,562 |
Restructuring and related charges |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Depreciation and amortization |  |  | 185 |  |  |  | 158 |  |  |  | 70 |  |  |  | 42 |  |  |  | 455 |
Segment income (loss) before income taxes |  |  | (195 | ) |  |  | (3,921 | ) |  |  | (1,437 | ) |  |  | 104 |  |  |  | (5,449 | )
Segment assets |  |  | 15,777 |  |  |  | 1,107 |  |  |  | 1,691 |  |  |  | 739 |  |  |  | 19,314 |
Expenditures for segment assets |  |  | 114 |  |  |  | 5 |  |  |  | -- |  |  |  | 18 |  |  |  | 137 |
Year ended December 31, 2014: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues from external customers |  | $ | 11,200 |  |  | $ | 4,493 |  |  | $ | 2,174 |  |  | $ | 1,693 |  |  | $ | 19,560 |
Intersegment revenues |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Segment gross profit |  |  | 3,272 |  |  |  | 1,297 |  |  |  | 1,182 |  |  |  | 888 |  |  |  | 6,638 |
Impairment of goodwill and intangibles |  |  | — |  |  |  | 1,773 |  |  |  | — |  |  |  | — |  |  |  | 1,773 |
Restructuring and related charges |  |  | — |  |  |  | 198 |  |  |  | 76 |  |  |  | 20 |  |  |  | 294 |
Depreciation and amortization |  |  | 287 |  |  |  | 242 |  |  |  | 69 |  |  |  | 48 |  |  |  | 646 |
Segment loss before income taxes |  |  | (414 | ) |  |  | (4,831 | ) |  |  | (1,698 | ) |  |  | 99 |  |  |  | (6,844 | )
Segment assets |  |  | 13,367 |  |  |  | 3,680 |  |  |  | 1,663 |  |  |  | 865 |  |  |  | 19,575 |
Expenditures for segment assets |  |  | 278 |  |  |  | 6 |  |  |  | — |  |  |  | 44 |  |  |  | 328 |
(c) The following tables represent a reconciliation of the segment data to consolidated statement of operations and balance sheet data for the years ended and as of December 31, 2014 and 2015:
|  | Year ended December 31, |
|  | 2014 |  |  | 2015 |
Total net loss before income taxes for reportable segments |  | $ | (6,943 | ) |  | $ | (5,553 | )
Other operational segment net income (loss) before income taxes |  |  | 99 |  |  |  | 104 |
Segment loss before income taxes |  |  | (6,844 | ) |  |  | (5,449 | )
Unallocated net income (cost) of DSIT headquarters |  |  | 109 |  |  |  | 120 |
Unallocated net cost of corporate headquarters* |  |  | (3,560 | ) |  |  | (4,029 | )
Consolidated net loss before taxes on income |  | $ | (10,295 | ) |  | $ | (9,358 | )
* Includes $830 and $582 of stock compensation expense for the years ended December 31, 2014 and 2015, respectively. In the year ended December 31, 2015, includes $225 of interest expense associated with the LT Loan (see Note 3).
|  | As of December 31, |
|  | 2014 |  |  | 2015 |
Assets: |  |  |  |  |  |  |  |
Total assets for reportable segments |  | $ | 18,710 |  |  | $ | 18,575 |
Total assets of other operational segment |  |  | 865 |  |  |  | 739 |
Assets of discontinued operations |  |  | 143 |  |  |  | — |
Unallocated assets of DSIT headquarters |  |  | 4,580 |  |  |  | 4,367 |
Unallocated assets of OmniMetrix headquarters |  |  | 507 |  |  |  | 397 |
Assets of corporate headquarters * |  |  | 4,738 |  |  |  | 252 |
Total consolidated assets |  | $ | 29,543 |  |  | $ | 24,330 |
* Includes $4,672 and $84 of unrestricted cash at December 31, 2014 and 2015, respectively.
Other Significant Items |  | Segment Totals |  |  | Adjustments |  |  | Consolidated Totals |
Year ended December 31, 2015 |  |  |  |  |  |  |  |  |  |  |  |
Depreciation and amortization |  | $ | 455 |  |  |  | 17 |  |  |  | 472 |
Expenditures for assets |  |  | 137 |  |  |  | 27 |  |  |  | 164 |
Year ended December 31, 2014 |  |  |  |  |  |  |  |  |  |  |  |
Depreciation and amortization |  | $ | 646 |  |  | $ | 2 |  |  | $ | 648 |
Expenditures for assets |  |  | 328 |  |  |  | 65 |  |  |  | 393 |
Other adjustments are primarily unallocated DSIT and corporate headquarters data which are not included in the segment information. None of the other adjustments are significant.
|  | Year ended December 31, |
|  | 2014 |  |  | 2015 |
Revenues based on location of customer: |  |  |  |  |  |  |  |
United States |  | $ | 5,279 |  |  | $ | 4,900 |
Israel |  |  | 7,155 |  |  |  | 7,699 |
Asia |  |  | 4,406 |  |  |  | 5,587 |
Oceania |  |  | 1,725 |  |  |  | 548 |
Other |  |  | 995 |  |  |  | 321 |
|  | $ | 19,560 |  |  | $ | 19,055 |
|  | December 31, |
|  | 2014 |  |  | 2015 |
Long-lived assets located in the following countries: |  |  |  |  |  |  |  |
United States |  | $ | 442 |  |  | $ | 322 |
Israel |  |  | 638 |  |  |  | 655 |
|  | $ | 1,080 |  |  | $ | 977 |
(d) Revenues, Accounts Receivable and Unbilled Revenue Balances from Major Customers All significant revenue, accounts receivable and unbilled revenue balances are with respect to customers in the Energy & Security Sonar Solutions segment.
|  |  | Revenue |  |  | Accounts Receivable |  |  | Unbilled Revenue |
|  |  | 2014 |  |  | 2015 |  |  | 2014 |  |  | 2015 |  |  | 2014 |  |  | 2015 |
Customer |  |  | Balance |  |  | % |  |  | Balance |  |  | % |  |  | Balance |  |  | % |  |  | Balance |  |  | % |  |  | Balance |  |  | % |  |  | Balance |  |  | % |
A |  |  |  | * |  |  |  | * |  |  | $ | 2,701 |  |  |  | 14 | % |  |  | * |  |  |  | * |  |  |  | * |  |  |  | * |  |  |  | * |  |  |  | * |  |  |  | * |  |  |  | * |
B |  |  | $ | 3,997 |  |  |  | 20 | % |  | $ | 2,735 |  |  |  | 14 | % |  | $ | 1,135 |  |  |  | 23 | % |  | $ | 1,844 |  |  |  | 28 | % |  | $ | 2,788 |  |  |  | 35 | % |  | $ | 1,507 |  |  |  | 39 | %
C |  |  |  | * |  |  |  | * |  |  | $ | 2,889 |  |  |  | 15 | % |  |  | * |  |  |  | * |  |  | $ | 1,049 |  |  |  | 16 | % |  |  | * |  |  |  | * |  |  | $ | 1,087 |  |  |  | 28 | %
D |  |  | $ | 1,940 |  |  |  | 10 | % |  | $ | 2,200 |  |  |  | 12 | % |  |  | * |  |  |  | * |  |  | $ | 834 |  |  |  | 12 | % |  | $ | 1,402 |  |  |  | 18 | % |  |  | * |  |  |  | * |
E |  |  |  | * |  |  |  | * |  |  |  | * |  |  |  | * |  |  |  | * |  |  |  | * |  |  | $ | 1,112 |  |  |  | 17 | % |  | $ | 979 |  |  |  | 12 | % |  |  | * |  |  |  | * |
F |  |  |  | * |  |  |  | * |  |  |  | * |  |  |  | * |  |  |  | * |  |  |  | * |  |  |  | * |  |  |  | * |  |  |  | * |  |  |  | * |  |  | $ | 408 |  |  |  | 11 | %
G |  |  |  | * |  |  |  | * |  |  |  | * |  |  |  | * |  |  |  | * |  |  |  | * |  |  |  | * |  |  |  | * |  |  | $ | 1,266 |  |  |  | 16 | % |  |  | * |  |  |  | * |
* Balance is not significant

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8981-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9038-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8595-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8984-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9031-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8538-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8864-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8906-108599 + Details
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