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Segment Reporting and Geographic Information | 12 Months Ended
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Dec. 31, 2017
Segment Reporting [Abstract] |
Segment Reporting and Geographic Information | NOTE 19—SEGMENT REPORTING AND GEOGRAPHIC INFORMATION (a) General Information As of December 31, 2017, the Company operates in two reportable operating segments, both of which are performed though the Company’s OmniMetrix subsidiary:
| ● | The PG segment provides wireless remote monitoring and control systems and services for critical assets as well as Internet of Things applications.
| ● | The CP segment provides for remote monitoring of cathodic protection systems on gas pipelines for gas utilities and pipeline companies.
In addition, up to the closing of the 2016 DSIT Transaction (see Note 3), the Company reported its activities in the Energy & Security Sonar Solutions segment. This segment, whose activities were performed by DSIT, provides 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. “Other” operations include certain IT activities (protocol management software for cancer patients and billing software) and outsourced consulting activities performed by the Company’s DSIT subsidiary that did not meet the quantitative thresholds under applicable accounting principles. Following the closing of the 2016 DSIT Transaction, the Company no longer consolidates the results of DSIT, but rather reports on its investment in DSIT on the equity method. Accordingly, effective April 21, 2016, the Company no longer consolidates the results of DSIT’s Energy & Security Sonar Solutions segment or the activities of its “Other” segment. 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. (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, 2017 and 2016:
|  | PG |  |  | CP |  |  | Energy & Security Sonar Systems* |  |  | Other* |  |  | Total |
Year ended December 31, 2017: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues from external customers |  | $ | 3,355 |  |  | $ | 995 |  |  | $ | — |  |  | $ | — |  |  | $ | 4,350 |
Intersegment revenues |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Segment gross profit |  |  | 2,017 |  |  |  | 430 |  |  |  | — |  |  |  | — |  |  |  | 2,447 |
Depreciation and amortization |  |  | 58 |  |  |  | 17 |  |  |  | — |  |  |  | — |  |  |  | 75 |
Segment loss before income taxes |  |  | (531 | ) |  |  | (340 | ) |  |  | — |  |  |  | — |  |  |  | (871 | )
Segment assets |  |  | 1,398 |  |  |  | 1,446 |  |  |  | — |  |  |  | — |  |  |  | 2,844 |
Expenditures for segment assets |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Year ended December 31, 2016: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues from external customers |  | $ | 2,903 |  |  | $ | 682 |  |  | $ | 4,620 |  |  | $ | 454 |  |  | $ | 8,659 |
Intersegment revenues |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Segment gross profit |  |  | 1,516 |  |  |  | 378 |  |  |  | 1,517 |  |  |  | 114 |  |  |  | 3,525 |
Depreciation and amortization |  |  | 65 |  |  |  | 15 |  |  |  | 53 |  |  |  | 10 |  |  |  | 143 |
Segment income (loss) before income taxes |  |  | (848 | ) |  |  | (352 | ) |  |  | 82 |  |  |  | (10 | ) |  |  | (1,128 | )
Segment assets |  |  | 1,673 |  |  |  | 879 |  |  |  | — |  |  |  | — |  |  |  | 2,552 |
Expenditures for segment assets |  |  | — |  |  |  | — |  |  |  | 30 |  |  |  | 3 |  |  |  | 33 |
(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, 2017 and 2016:
|  | Year ended December 31, |
|  | 2017 |  |  | 2016 |
Total net loss before income taxes for reportable segments |  | $ | (871 | ) |  | $ | (1,118 | )
Other operational segment net loss before income taxes |  |  | — |  |  |  | (10 | )
Segment loss before income taxes |  |  | (871 | ) |  |  | (1,128 | )
Gain on sale of interest in DSIT, net of transaction costs |  |  | — |  |  |  | 3,543 |
Unallocated net income (cost) of DSIT headquarters* |  |  | — |  |  |  | 6 |
Unallocated net cost of corporate headquarters** |  |  | (1,271 | ) |  |  | (2,491 | )
Consolidated net loss before taxes on income |  | $ | (2,142 | ) |  | $ | (82 | )
* Results for the year ended December 31, 2016 only include DSIT’s results for the period January 1, 2016 to April 21, 2016. See Note 3. ** Includes $22 and $89 of stock compensation expense for the years ended December 31, 2017 and 2016, respectively. Also includes $446 of interest expense associated with the LT Loan for the year ended December 31, 2016 (see Note 5) $107 and $56 of interest expense with respect to director loans for the years ended December 31, 2017 and 2016, respectively (See Note 18).
|  | As of December 31, |
|  | 2017 |  |  | 2016 |
Assets: |  |  |  |  |  |  |  |
Total assets for reportable segments |  | $ | 2,844 |  |  | $ | 2,552 |
Assets of discontinued operations |  |  | — |  |  |  | 119 |
Unallocated assets of OmniMetrix headquarters |  |  | 87 |  |  |  | 213 |
Assets of corporate headquarters * |  |  | 6,291 |  |  |  | 6,356 |
Total consolidated assets |  | $ | 9,222 |  |  | $ | 9,240 |
* Includes the investment in DSIT of $5,800 at December 31, 2017. Includes the investment in DSIT of $5,658 and the escrow deposit of $579 from the 2016 DSIT Transaction at December 31, 2016.
Other Significant Items |  | Segment Totals |  |  | Adjustments |  |  | Consolidated Totals |
Year ended December 31, 2017 |  |  |  |  |  |  |  |  |  |  |  |
Depreciation and amortization |  | $ | 75 |  |  | $ | — |  |  | $ | 75 |
Year ended December 31, 2016 |  |  |  |  |  |  |  |  |  |  |  |
Depreciation and amortization |  | $ | 143 |  |  | $ | 3 |  |  | $ | 146 |
Expenditures for assets |  |  | 33 |  |  |  | — |  |  |  | 33 |
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, |
|  | 2017 |  |  | 2016 |
Revenues based on location of customer: |  |  |  |  |  |  |  |
United States |  | $ | 4,327 |  |  | $ | 3,550 |
Israel |  |  | — |  |  |  | 3,061 |
Asia |  |  | — |  |  |  | 2,013 |
Other |  |  | 23 |  |  |  | 35 |
|  | $ | 4,350 |  |  | $ | 8,659 |
All of the Company’s long-lived assets are located in the United States. (d) Revenues and Accounts Receivable Balances from Major Customers Customers A and B are all related to DSIT’s Energy & Security Sonar Solutions segment. Customer C is related to OmniMetrix’s CP segment.
|  | Revenue |  |  | Accounts Receivable** |
|  | 2017 |  |  | 2016 |  |  | 2017 |  |  | 2016 |
Customer |  | Balance |  |  | % |  |  | Balance |  |  | % |  |  | Balance |  |  | % |  |  | Balance |  |  | % |
A |  | $ | — |  |  |  | — | % |  | $ | 1,828 |  |  |  | 21 | % |  |  | * |  |  |  | * |  |  |  |  |  |  |  | * |  |  |  | * |
B |  | $ | — |  |  |  | — | % |  | $ | 1,295 |  |  |  | 15 | % |  |  | * |  |  |  | * |  |  |  | $ |  |  |  | * |  |  |  | * | %
C |  |  | * |  |  |  | * |  |  |  | * |  |  |  | * |  |  | $ | 297 |  |  |  | 27 | % |  |  |  |  |  |  | 283 |  |  |  | 28 |
* Balance is not significant ** Following the closing of the 2016 DSIT Transaction (see Note 3), the Company no longer consolidates the assets, liabilities or results of DSIT, but rather reports its investment in DSIT using the equity method. Accordingly, the Company no longer reports DSIT’s Accounts Receivable or Unbilled Revenue balances.

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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 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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