WHOLLY OWNED FOREIGN SUBSIDIARIES

9 Months Ended

Sep. 30, 2012

Wholly Owned Foreign Subsidiaries [Abstract]

Wholly Owned Foreign Subsidiaries [Text Block]

NOTE 19 - WHOLLY OWNED FOREIGN SUBSIDIARIES

The financial statements of the Company’s wholly owned German subsidiary, I.D. Systems GmbH, are consolidated with the financial statements of I.D. Systems, Inc.

The net revenue and net loss for the GmbH included in the Condensed Consolidated Statement of Operations are as follows:

	For the Three Months Ended						For the Nine Months Ended
	September 30,						September 30,
	2011			2012			2011			2012
Net revenue	$	123,000		$	170,000		$	692,000		$	932,000
Net loss		(154,000	)		(160,000	)		(306,000	)		(227,000	)

Total assets of the GmbH were $1,761,000 and $1,680,000 as of December 31, 2011 and September 30, 2012, respectively. The GmbH operates in a local currency environment using the Euro as its functional currency.

The financial statements of the Company’s wholly owned United Kingdom subsidiary, I.D. Systems (UK) Ltd (“Didbox”) are consolidated with the financial statements of I.D. Systems, Inc.

The net revenue and net loss for Didbox included in the Condensed Consolidated Statement of Operations are as follows:

	For the Three Months Ended						For the Nine Months Ended
	September 30,						September 30,
	2011			2012			2011			2012
Net revenue	$	113,000		$	220,000		$	529,000		$	992,000
Net income (loss)		(73,000	)		(120,000	)		(69,000	)		(7,000	)

Total assets of Didbox were $810,000 and $1,281,000 as of December 31, 2011 and September 30, 2012, respectively. Didbox operates in a local currency environment using the British Pound as its functional currency.

Income and expense accounts of foreign operations are translated at actual or weighted-average exchange rates during the period. Assets and liabilities of foreign operations that operate in a local currency environment are translated to U.S. dollars at the exchange rates in effect at the balance sheet date. Translation gains or losses are reported as components of accumulated other comprehensive income/loss in consolidated stockholders’ equity. Net exchange gains or losses resulting from the translation of foreign financial statements and the effect of exchange rate changes on intercompany transactions of a long-term investment nature with the GmbH resulted in translation gain (loss) of $33,000 and $(37,000) for the nine-month periods ended September 30, 2011 and 2012, respectively, which is included in comprehensive loss in the Consolidated Statement of Changes in Stockholders’ Equity.

Gains and losses resulting from foreign currency transactions are included in determining net income or loss. Foreign currency transactions (losses) gains for the three- and nine-month periods ended September 30, 2011 of $(22,000) and $6,000, respectively, and for the three and nine months ended September 30, 2012 of $(44,000) and $(28,000), respectively, are included as an offset to selling, general and administrative expenses in the Condensed Consolidated Statement of Operations.