XML 23 R7.htm IDEA: XBRL DOCUMENT v3.19.1
Nature of Operations
 12 Months Ended
Dec. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Nature of Operations

NOTE 1—NATURE OF OPERATIONS

 

(a) Description of Business

 

Acorn Energy, Inc. (“Acorn” or “the Company”) is a Delaware corporation which is holding company focused on technology-driven solutions for energy infrastructure asset management. Following the sale of its remaining interests in DSIT Solutions Ltd. (“DSIT”) in February 2018 (the 2018 DSIT Transaction) , the Company provides the following services and products through its OmniMetrixTM, LLC (“OmniMetrix”) subsidiary:

 

  ● Power Generation (“PG”) monitoring. OmniMetrix’s PG activities provide wireless remote monitoring and control systems and services for critical assets as well as Internet of Things applications.
     
  ● Cathodic Protection (“CP”) monitoring. OmniMetrix’s CP activities provide for remote monitoring of cathodic protection systems on gas pipelines for gas utilities and pipeline companies.

 

On January 18, 2018, the Company entered into a Share Purchase Agreement for the sale of its remaining interest in DSIT to an Israeli investor group. Following the closing of the transaction on February 14, 2018, the Company will no longer report DSIT’s results on the equity method.

 

The Company’s operations are based in the United States and in Israel through its investment in DSIT until the closing of the 2018 DSIT Transaction. Acorn’s shares are traded on the OTCQB marketplace under the symbol ACFN.

 

See Notes 16 and 17 for segment information and major customers.

 

(b) Liquidity

 

As of December 31, 2018, the Company had approximately $973 of corporate cash and cash equivalents excluding restricted cash of $290 held at a bank in Israel. In February 2018, the Company sold its remaining interest in DSIT for $5,800 and received cash proceeds of approximately $4,200 (net of $1,600 of the balance due to DSIT which was assigned to the purchasers) which was used to pay transaction costs, withholding taxes, repay director loans and accrued interest and other liabilities. As of March 22, 2019, the Company had corporate cash of approximately $814 excluding restricted cash of $290 held at a bank in Israel. Such cash plus the cash generated from operations and borrowing from the OmniMetrix Loan and Security Agreement, will provide sufficient liquidity to finance the operating activities of Acorn and OmniMetrix at their current level of operations for the foreseeable future and for the twelve months from the issuance of these financial statements in particular.

 

(c) Accounting Principles

 

The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”).

 

(d) Use of Estimates in Preparation of Financial Statements

 

The preparation of consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods.

 

As applicable to these consolidated financial statements, the most significant estimates and assumptions relate to uncertainties with respect to income taxes, inventories, account receivable allowances, contingencies and analyses of the possible impairments.

 

(e) Amounts in the Notes to the Financial Statements

 

All dollar amounts in the notes to the consolidated financial statements are in thousands except for per share data.