ID SYSTEMS INC

CIK:0000049615|SEC Filings

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenue:
Total Revenue	$ 16,274,000	$ 14,809,000	$ 29,885,000	$ 28,188,000
Cost of revenue:
Total Cost of revenue	9,203,000	8,394,000	15,796,000	15,311,000
Gross profit	7,071,000	6,415,000	14,089,000	12,877,000
Operating expenses:
Selling, general and administrative expenses	5,993,000	5,844,000	12,103,000	11,361,000
Research and development expenses	2,024,000	1,542,000	3,684,000	3,285,000
Acquisition-related expenses	1,613,000	149,000	3,062,000	328,000
Total Operating expenses	9,630,000	7,535,000	18,849,000	14,974,000
Loss from operations	(2,559,000)	(1,120,000)	(4,760,000)	(2,097,000)
Interest income	8,000	74,000	73,000	151,000
Interest expense	(26,000)	(59,000)	(46,000)	(116,000)
Other expense, net	(8,000)	(11,000)	(46,000)	(44,000)
Net loss	$ (2,585,000)	$ (1,116,000)	$ (4,779,000)	$ (2,106,000)
Net loss per share - basic and diluted	$ (0.15)	$ (0.07)	$ (0.27)	$ (0.12)
Weighted average common shares outstanding - basic and diluted	17,678,000	17,066,000	17,650,000	17,024,000
Products [Member]
Revenue:
Total Revenue	$ 10,643,000	$ 10,784,000	$ 17,892,000	$ 20,682,000
Cost of revenue:
Total Cost of revenue	7,062,000	7,408,000	11,301,000	13,250,000
Service [Member]
Revenue:
Total Revenue	5,631,000	4,025,000	11,993,000	7,506,000
Cost of revenue:
Total Cost of revenue	$ 2,141,000	$ 986,000	$ 4,495,000	$ 2,061,000

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Cash flows from operating activities: (net of assets acquired)
Net loss	$ (4,779,000)	$ (2,106,000)
Adjustments to reconcile net loss to cash used in operating activities:
Bad debt expense	110,000	4,000
Stock-based compensation expense	1,184,000	1,089,000
Depreciation and amortization	852,000	782,000
Inventory reserve	93,000	140,000
Change in contingent consideration	47,000	112,000
Other non-cash items	(11,000)	4,000
Changes in:
Accounts receivable	(1,697,000)	(3,205,000)
Financing receivables	217,000	363,000
Inventory	(2,231,000)	582,000
Prepaid expenses and other assets	270,000	(1,156,000)
Deferred costs	(609,000)	(95,000)
Deferred revenue	694,000	(124,000)
Accounts payable and accrued expenses	3,578,000	299,000
Net cash used in operating activities	(2,282,000)	(3,311,000)
Cash flows from investing activities:
Acquisitions	(3,800,000)
Capital expenditures	(396,000)	(150,000)
Purchase of investments	(99,000)	(1,963,000)
Proceeds from the sale and maturities of investments	4,638,000	3,915,000
Net cash provided by investing activities	343,000	1,802,000
Cash flows from financing activities:
Proceeds from exercise of stock options	177,000	190,000
Common stock repurchased - vesting of restricted stock	(245,000)	(456,000)
Net cash used in financing activities	(68,000)	(266,000)
Effect of foreign exchange rate changes on cash and cash equivalents	(54,000)	71,000
Net decrease in cash, cash equivalents and restricted cash	(2,061,000)	(1,704,000)
Cash, cash equivalents and restricted cash - beginning of period	10,466,000	5,403,000
Cash, cash equivalents and restricted cash - end of period	8,405,000	3,699,000
Reconciliation of cash, cash equivalents, and restricted cash, beginning of period
Cash and cash equivalents	10,159,000	5,097,000
Restricted cash	307,000	306,000
Cash, cash equivalents, and restricted cash, beginning of period	10,466,000	5,403,000
Cash and cash equivalents	8,098,000	3,393,000
Restricted cash	307,000	306,000
Cash, cash equivalents, and restricted cash, end of beginning of period	8,405,000	3,699,000
Cash paid for:
Taxes
Interest	56,000
Noncash investing and financing activities:
Unrealized (loss) gain on investments	47,000	(72,000)
Value of shares withheld pursuant to stock issuance		$ 238,000

Condensed Consolidated Balance Sheets - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 8,098,000	$ 10,159,000
Restricted cash	307,000	307,000
Investments - short term		394,000
Accounts receivable, net of allowance for doubtful accounts of $67,000 and $143,000 in 2018 and 2019, respectively	11,026,000	9,247,000
Financing receivables - current, net of allowance for doubtful accounts of $-0- in 2018 and 2019	782,000	1,036,000
Inventory, net	6,986,000	4,649,000
Deferred costs - current	3,800,000	3,660,000
Prepaid expenses and other current assets	2,945,000	3,208,000
Total current assets	33,944,000	32,660,000
Investments - long term		4,131,000
Financing receivables - less current portion	1,291,000	1,254,000
Deferred costs - less current portion	5,878,000	5,409,000
Fixed assets, net	2,166,000	2,149,000
Goodwill	8,373,000	7,318,000
Intangible assets, net	6,259,000	4,705,000
Right of use asset	2,004,000
Other assets	497,000	177,000
Total assets	60,412,000	57,803,000
Current liabilities:
Accounts payable and accrued expenses	11,605,000	8,027,000
Deferred revenue - current	8,366,000	7,902,000
Acquisition related contingent consideration payable	993,000	946,000
Lease liability - current	831,000
Total current liabilities	21,795,000	16,875,000
Deferred revenue - less current portion	9,416,000	9,186,000
Lease liability - less current portion	1,341,000
Deferred rent		208,000
Total Liabilities	32,552,000	26,269,000
Commitments and Contingencies (Note 21)
STOCKHOLDERS' EQUITY
Preferred stock; authorized 5,000,000 shares, $0.01 par value; none issued
Common stock; authorized 50,000,000 shares, $0.01 par value; 19,178,000 and 19,473,000 shares issued at December 31, 2018 and June 30, 2019, respectively; shares outstanding, 18,166,000 and 18,425,000 at December 31, 2018 and June 30, 2019, respectively	195,000	192,000
Additional paid-in capital	140,051,000	138,693,000
Accumulated deficit	(105,959,000)	(101,180,000)
Accumulated other comprehensive loss	(446,000)	(435,000)
Treasury stock; 1,012,000 and 1,048,000 common shares at cost at December 31, 2018 and June 30, 2019, respectively	(5,981,000)	(5,736,000)
Total stockholders' equity	27,860,000	31,534,000
Total liabilities and stockholders' equity	$ 60,412,000	$ 57,803,000