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Investment in DSIT Solutions, Ltd. ('DSIT')

6 Months Ended

Jun. 30, 2018

Investment in DSIT Solutions, Ltd. ('DSIT')

NOTE 3—INVESTMENT IN DSIT SOLUTIONS, LTD. (“DSIT”)

On February 14, 2018 (the “Closing Date”), the Company closed on a transaction (the “2018 DSIT Transaction”) initially entered into on January 18, 2018 for the sale of the Company’s remaining 41.15% interest in its DSIT Solutions Ltd. business to an Israeli investor group, and received gross proceeds of $5,800 before transaction costs, professional fees and withholding taxes. From the gross proceeds, the Company paid $388 of withholding taxes, paid or accrued $441 of transaction costs and recorded a loss of $829 as the carrying value of the Company’s investment in DSIT had previously been written down to the gross proceeds of the 2018 DSIT Transaction. From the proceeds, the Company also repaid $1,600 of amounts due to DSIT and $1,428 of loan principal and interest due to directors.

The Company’s share of DSIT’s net income for the period from January 1, 2018 to the Closing Date and the six-month period ended June 30, 2017 can be seen below:

	Period from January 1, 2018 to the Closing Date		Six months ending June 30, 2017

Revenue	$	4,481	$	8,062
Cost of sales		2,842		5,315
Gross profit		1,639		2,747

Net income	$	160	$	169

Acorn’s share of net income in DSIT	$	33	$	69

The activity of the Company’s Investment in DSIT for the period from January 1, 2018 to June 30, 2018 can be seen below:

	Equity Investment balance in DSIT
Balance at December 31, 2017	$	5,800
Acorn’s share of net income in DSIT for the period from January 1, 2018 to the Closing Date		33
Impairment		(33	)
Sale of Investment in DSIT		(5,800	)
Balance at June 30, 2018	$	—