000-1021604
|
|
N/A
|
(Commission File Number)
|
|
(IRS Employer Identification No.)
|
Z.H.R. Industrial Zone, P.O. Box 32, Rosh-Pina, Israel
|
|
12000
|
(Address of Principal Executive Offices)
|
|
(Zip Code)
|
☐
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
☐
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
☐
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
☐
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Exhibit No.
|
|
Description
|
99.1
|
|
Press Release dated August 10, 2016
|
|
On Track Innovations Ltd.
|
|
|
|
|
|
|
Date: August 10, 2016
|
By:
|
/s/ Shlomi Cohen
|
|
|
|
Name: Shlomi Cohen
|
|
|
|
Title: Chief Executive Officer
|
|
· | Partnered with Microtronic to bring world's first open and closed loop payment solution to the global vending market |
· | Formed partnerships with vending distributors to the Romanian, Netherlands and Flanders markets |
· | Unattended Card Payments (UCP) selected the SATURN 6500 TRIO reader and CONNECT 3000 telemetry controller as part of its portfolio of offerings for the North American unattended market |
· | Partnered with Samsung Pay and other global point-of-sale providers to accelerate adoption of mobile payments |
· | Introduced PayCapsule-Flex, one of the smallest payment cards designed to turn existing products and apparel into payment devices with Internet of Things (IoT) capabilities |
· | OTI PetroSmart partnered with Fuel Telematics Solutions to deliver secure mobile payment for corporate fleet vehicles |
· | OTI PetroSmart received a follow-on order from Smart Applications International Ltd. for more than 500,000 MediSmart™ cards |
Three months ended June 30,
|
Six months ended June 30,
|
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|||||||||||||
Net Income (Loss)
|
$
|
1,349
|
$
|
(2,049
|
)
|
$
|
421
|
$
|
(3,809
|
)
|
||||||
Net income from discontinued operations
|
(1,988
|
)
|
-
|
(1,927
|
)
|
(362
|
)
|
|||||||||
Financial expenses, net
|
67
|
195
|
171
|
420
|
||||||||||||
Depreciation
|
312
|
319
|
620
|
617
|
||||||||||||
Taxes on income
|
16
|
(16
|
)
|
32
|
3
|
|||||||||||
TOTAL EBITDA FROM CONTINUING OPERATIONS
|
$
|
(244
|
)
|
$
|
(1,551
|
)
|
$
|
(683
|
)
|
$
|
(3,131
|
)
|
||||
Patent litigation and maintenance
|
11
|
283
|
28
|
459
|
||||||||||||
Other expenses
|
-
|
433
|
-
|
510
|
||||||||||||
Stock-based compensation
|
78
|
152
|
105
|
332
|
||||||||||||
TOTAL ADJUSTED EBITDA FROM CONTINUING OPERATIONS
|
$
|
(155
|
)
|
$
|
(683
|
)
|
$
|
(550
|
)
|
$
|
(1,830
|
)
|
June 30,
|
December 31,
|
|||||||
2016
|
2015
|
|||||||
Assets
|
||||||||
Current assets
|
||||||||
Cash and cash equivalents
|
$
|
4,816
|
$
|
5,450
|
||||
Short-term investments
|
6,342
|
5,454
|
||||||
Trade receivables (net of allowance for doubtful
|
||||||||
accounts of $633 and $778 as of June 30, 2016
|
||||||||
and December 31, 2015, respectively)
|
3,613
|
2,418
|
||||||
Other receivables and prepaid expenses
|
1,971
|
2,183
|
||||||
Inventories
|
2,637
|
3,330
|
||||||
Total current assets
|
19,379
|
18,835
|
||||||
Long-term restricted deposit for employees benefit
|
465
|
524
|
||||||
Severance pay deposits
|
328
|
455
|
||||||
Property, plant and equipment, net
|
8,153
|
8,668
|
||||||
Intangible assets, net
|
239
|
180
|
||||||
Total Assets
|
$
|
28,564
|
$
|
28,662
|
June 30,
|
December 31,
|
|||||||
2016
|
2015
|
|||||||
Liabilities and Equity
|
||||||||
Current Liabilities
|
||||||||
Short-term bank credit and current maturities
|
||||||||
of long-term bank loans
|
$
|
3,854
|
$
|
3,815
|
||||
Trade payables
|
5,607
|
5,441
|
||||||
Other current liabilities
|
2,643
|
2,724
|
||||||
Total current liabilities
|
12,104
|
11,980
|
||||||
Long-Term Liabilities
|
||||||||
Long-term loans, net of current maturities
|
1,859
|
2,359
|
||||||
Accrued severance pay
|
904
|
1,148
|
||||||
Deferred tax liability
|
370
|
352
|
||||||
Total long-term liabilities
|
3,133
|
3,859
|
||||||
Total Liabilities
|
15,237
|
15,839
|
||||||
Commitments and Contingencies
|
||||||||
Equity
|
||||||||
Shareholders' Equity
|
||||||||
Ordinary shares of NIS 0.1 par value: Authorized –
|
||||||||
50,000,000 shares as of June 30, 2016 and
|
||||||||
December 31, 2015; issued: 42,084,075 and 42,014,673 shares as
|
||||||||
of June 30, 2016 and December 31, 2015, respectively;
|
||||||||
outstanding: 40,905,376 and 40,835,974 shares
|
||||||||
as of June 30, 2016 and December 31, 2015, respectively
|
1,055
|
1,055
|
||||||
Additional paid-in capital
|
226,030
|
225,925
|
||||||
Treasury shares at cost - 1,178,699 shares as of June 30,
|
||||||||
2016 and December 31, 2015
|
(2,000
|
)
|
(2,000
|
)
|
||||
Accumulated other comprehensive loss
|
(1,106
|
)
|
(1,084
|
)
|
||||
Accumulated deficit
|
(208,806
|
)
|
(209,254
|
)
|
||||
Total Shareholder’s equity
|
15,173
|
14,642
|
||||||
Non-controlling interest
|
(1,846
|
)
|
(1,819
|
)
|
||||
Total Equity
|
13,327
|
12,823
|
||||||
Total Liabilities and Equity
|
$
|
28,564
|
$
|
28,662
|
Three months ended June 30,
|
Six months ended June 30,
|
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
Revenues
|
||||||||||||||||
Sales
|
$
|
3,708
|
$
|
4,057
|
$
|
7,201
|
$
|
7,654
|
||||||||
Licensing and transaction fees
|
1,381
|
1,359
|
2,765
|
2,737
|
||||||||||||
Total revenues
|
5,089
|
5,416
|
9,966
|
10,391
|
||||||||||||
Cost of revenues
|
||||||||||||||||
Cost of sales
|
2,434
|
2,718
|
4,766
|
5,223
|
||||||||||||
Total cost of revenues
|
2,434
|
2,718
|
4,766
|
5,223
|
||||||||||||
Gross profit
|
2,655
|
2,698
|
5,200
|
5,168
|
||||||||||||
Operating expenses
|
||||||||||||||||
Research and development
|
784
|
937
|
1,535
|
1,905
|
||||||||||||
Selling and marketing
|
1,504
|
1,772
|
3,090
|
3,658
|
||||||||||||
General and administrative
|
912
|
1,143
|
1,850
|
2,384
|
||||||||||||
Patent litigation and maintenance
|
11
|
283
|
28
|
459
|
||||||||||||
Other expenses
|
-
|
433
|
-
|
510
|
||||||||||||
Total operating expenses
|
3,211
|
4,568
|
6,503
|
8,916
|
||||||||||||
Operating loss from continuing operations
|
(556
|
)
|
(1,870
|
)
|
(1,303
|
)
|
(3,748
|
)
|
||||||||
Financial expenses, net
|
(67
|
)
|
(195
|
)
|
(171
|
)
|
(420
|
)
|
||||||||
Loss from continuing operations
|
||||||||||||||||
before taxes on income
|
(623
|
)
|
(2,065
|
)
|
(1,474
|
)
|
(4,168
|
)
|
||||||||
Income tax
|
(16
|
)
|
16
|
(32
|
)
|
(3
|
)
|
|||||||||
Net loss from continuing operations
|
(639
|
)
|
(2,049
|
)
|
(1,506
|
)
|
(4,171
|
)
|
||||||||
Net income from discontinued operations
|
1,988
|
-
|
1,927
|
362
|
||||||||||||
Net income (loss)
|
1,349
|
(2,049
|
)
|
421
|
(3,809
|
)
|
||||||||||
Net loss (income) attributable to non-controlling interest
|
(36
|
)
|
35
|
27
|
26
|
|||||||||||
Net income (loss) attributable to shareholders
|
$
|
1,313
|
$
|
(2,014
|
)
|
$
|
448
|
$
|
(3,783
|
)
|
||||||
Basic and diluted net gain (loss) attributable to shareholders per ordinary share
|
||||||||||||||||
From continuing operations
|
(0.02
|
)
|
(0.05
|
)
|
(0.04
|
)
|
(0.10
|
)
|
||||||||
From discontinued operations
|
0.05
|
-
|
0.05
|
0.01
|
||||||||||||
$
|
0.03
|
$
|
(0.05
|
)
|
$
|
0.01
|
$
|
(0.09
|
)
|
|||||||
Weighted average number of ordinary shares used in computing basic and diluted net (loss) income per ordinary share
|
40,896,863
|
40,873,680
|
40,885,668
|
40,865,089
|
Six months ended June 30,
|
||||||||
2016
|
2015
|
|||||||
Cash flows from continuing operating activities
|
||||||||
Net loss from continuing operations
|
$
|
(1,506
|
)
|
$
|
(4,171
|
)
|
||
Adjustments required to reconcile net loss to
|
||||||||
net cash used in continuing operating activities:
|
||||||||
Stock-based compensation related to options issued to employees
|
105
|
332
|
||||||
Accrued interest and linkage differences, net
|
55
|
(42
|
)
|
|||||
Depreciation
|
620
|
617
|
||||||
Changes in operating assets and liabilities:
|
||||||||
Accrued severance pay, net
|
(117
|
)
|
(20
|
)
|
||||
Deferred tax, net
|
32
|
1
|
||||||
(Increase) decrease in trade receivables, net
|
(1,097
|
)
|
482
|
|||||
Decrease in other receivables and prepaid expenses
|
210
|
374
|
||||||
Decrease in inventories
|
691
|
290
|
||||||
Increase (decrease) in trade payables
|
190
|
(274
|
)
|
|||||
(Decrease) increase in other current liabilities
|
(489
|
)
|
119
|
|||||
Net cash used in continuing operating activities
|
(1,306
|
)
|
(2,292
|
)
|
||||
Cash flows from continuing investing activities
|
||||||||
Purchase of property and equipment, net
|
(139
|
)
|
(463
|
)
|
||||
Increase in short-term investments, net
|
(884
|
)
|
2,163
|
|||||
Investment in capitalized product costs
|
(98
|
)
|
(67
|
)
|
||||
Advance payment from sale of property
|
396
|
-
|
||||||
Investment in restricted deposit for employees benefit
|
-
|
(281
|
)
|
|||||
Net cash (used in) provided by continuing investing activities
|
(725
|
)
|
1,352
|
|||||
Cash flows from continuing financing activities
|
||||||||
Increase in short-term bank credit, net
|
81
|
809
|
||||||
Proceeds from long-term bank loans
|
27
|
446
|
||||||
Repayment of long-term bank loans
|
(538
|
)
|
(404
|
)
|
||||
Proceeds from exercise of options
|
(*
|
)
|
-
|
|||||
Net cash (used in) provided by continuing financing activities
|
(430
|
)
|
851
|
|||||
Cash flows from discontinued operations
|
||||||||
Net cash used in discontinued operating activities
|
(105
|
)
|
(25
|
)
|
||||
Net cash provided by discontinued investing activities
|
1,949
|
387
|
||||||
Total net cash provided by discontinued operations
|
1,844
|
362
|
||||||
Effect of exchange rate changes on cash and cash equivalents
|
(17
|
)
|
(164
|
)
|
||||
(Decrease) increase in cash and cash equivalents
|
(634
|
)
|
109
|
|||||
Cash and cash equivalents at the beginning of the period
|
5,450
|
5,351
|
||||||
Cash and cash equivalents at the end of the period
|
$
|
4,816
|
$
|
5,460
|