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Discontinued Operations
 6 Months Ended
Jun. 30, 2016
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations

NOTE 4—Discontinued Operations

 

(a) GridSense

 

On April 21, 2016, the Company announced that it has decided to cease operations of its GridSense subsidiary and initiate the liquidation of the GridSense assets. As a result of this decision, GridSense is being reported as a discontinued operation. Following the decision to cease GridSense operations, the Company has written down all GridSense assets to their estimated realizable values and accrued for estimated severance costs of $140 and lease commitments of $100 in GridSense’s first quarter results. On July 12, 2016, the Company and its GridSense Inc. subsidiary completed a sale of GridSense’s assets. See Subsequent Events – Note 13.

 

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

 

    As at  
    December 31, 2015     June 30, 2016  
             
Cash and cash equivalents   $ 48     $ 23  
Other current assets and non-current assets     1,060       28  
Total assets   $ 1,108     $ 51  
Short-term bank credit   $ 138     $ —  
Accounts payable     950       953  
Accrued payroll, payroll taxes and social benefits     186       317  
Other current and non-current liabilities     572       475  
Total liabilities   $ 1,846     $ 1,745  

 

GridSense had a working agreement with its bank to allow GridSense to borrow against 80% of certain accounts receivable balances up to $750 at an interest equal to 1.25% per month. At December 31, 2015, GridSense was utilizing approximately $138 of its accounts receivable line. At June 30, 2016, GridSense was not utilizing its accounts receivable line. The accounts receivable line expired on July 16, 2016.

 

GridSense’s losses for the three and six months ended June 30, 2015 and 2016 are included in “Loss from discontinued operations, net of income taxes” in the Company’s Condensed Consolidated Statements of Operations. Summarized financial information for GridSense’s operations for the three and six months ended June 30, 2015 and 2016 are presented below:

 

    Six months ended
June 30,		     Three months ended
June 30,		  
    2015     2016     2015     2016  
Revenue   $ 1,610     $ 207     $ 702     $ 64  
Gross profit   $ 273     $ 23     $ (4 )   $ 53  
Net loss   $ (2,069 )   $ (1,610 )   $ (1,600 )   $ (224 )

 

(b) US Seismic Systems Inc. (“USSI”)

 

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. At that time, USSI effectively suspended operations and terminated substantially all employees.

 

On September 28, 2015, the Board of Directors of USSI approved a motion to file a voluntary petition for protection under Chapter 7 of the United States Bankruptcy Code (a “Chapter 7 Bankruptcy”). Such filing was made on September 30, 2015. Under a Chapter 7 Bankruptcy, control of USSI no longer rests with the Company, but rather with a court-appointed trustee. Accordingly, effective September 30, 2015, the Company no longer consolidates the assets, liabilities or operating results of USSI.

 

USSI’s losses for the three and six months ended June 30, 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, 2015 is presented below:

 

    Six months ended
June 30, 2015		     Three months ended
June 30, 2015		  
Revenues   $ 79     $ 79  
Gross profit   $ (86 )   $ 4  
                 
Net loss   $ (1,381 )   $ (229 )
Net loss attributable to non-controlling interests   $ 175     $ 31  
Net loss attributable to Acorn Energy Inc.   $ (1,206 )   $ (198 )