Discontinued Operation

12 Months Ended

Dec. 31, 2018

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATION

NOTE 16 — DISCONTINUED OPERATION

On December 31, 2017, the Company, Enertec and Enertec Management Ltd. entered into the Share Purchase Agreement with Coolisys, a subsidiary of DPW, pursuant to which the Conpany agreed to sell the entire share capital of Enertec to Coolisys. As consideration for the sale of Enertec’s entire share capital, Coolisys agreed to pay, at the closing of the transaction, a purchase price of $5,250 as well as assume up to $4,000 of Enertec debt. Enertec met the definition of a component as defined by FASB ASC Topic 205, since Enertec had been classified as held for sale and the Company believes the sale represented a strategic shift in its business. Accordingly, its assets and liabilities were classified as held for sale and the results of operations in the statement of operations and prior periods’ results have been reclassified as a discontinued operation. On May 22, 2018, the Company closed on the sale of all of the outstanding equity of Enertec pursuant to the Share Purchase Agreement.

At the closing, the Company received aggregate gross proceeds of approximately $4,700 of which 10% will be held in escrow for up to 14 months after the Closing to satisfy certain potential indemnification claims. Therefore, the Company has recorded such escrowed amount on its balance sheet as restricted cash and a liability. The final consideration amount was adjusted, pursuant to the terms of the Share Purchase Agreement, as a result of adjustments relating to certain Enertec debts at the Closing. In addition, Coolisys also assumed approximately $4,000 of Enertec’s debt. The Company’s capital gain from the sale of Enertec, based on the Company’s balance sheet at the closing date is $6,844.

The following is the composition from discontinued operation through December 31, 2018 and December 31, 2017:

The following is the composition from discontinued operation:

	December 31, 2018		December 31, 2017
ASSETS
Current assets:
Cash and cash equivalents	$	-	$	279
Restricted cash		-		4,224
Trade accounts receivable, net		-		4,807
Inventories		-		1,506
Other accounts receivable		-		66
Total current assets		-		10,882
Property and equipment, net		-		676
Long-term Assets		-		98
Total long-term assets		-		774
Total assets	$	-	$	11,656

	December 31, 2018		December 31, 2017
LIABILITIES
Short-term bank credit	$	-	$	8,863
Trade accounts payable		-		1,380
Other accounts payable		-		957
Total current liabilities		-		11,200
Accrued severance pay, net		-		138
Total Liabilities	$	-	$	11,338

	For the Period between
	January 1, 2018 to May 22, 2018			January 1, 2017 to December 31, 2017
Revenues	$	1,512		$	7,061
Cost of revenues		2,655			7,790
Gross profit (loss)		(1,143	)		(729	)
Operating expenses:
Research and development		120			672
Selling and marketing		204			546
General and administrative		376			2,199
Total operating expenses		700			3,417
Loss from operations		(1,843	)		(4,146	)
Capital gain		6,844			-
Finance expense, net		(102	)		(632	)
Profit (loss) before provision for income taxes		4,899			(4,778	)
Taxes on income		5			124
Net profit (loss)	$	4,894		$	(4,902	)

	For the Period between
	January 1, 2018 to May 22, 2018			January 1, 2017 to December 31, 2017
Net cash provided by (used in) operating activities	$	131		$	(1,367	)
Net cash used in investing activities		(39	)		43
Net cash provided by (used in) financing activities		(63	)		1,427
NET CASH INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH		29			103
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF THE PERIOD		4,503			128
TRANSLATION ADJUSTMENT OF CASH AND CASH EQUIVALENTS		(147	)		48
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF THE PERIOD	$	4,385		$	279