Discontinued Operations

12 Months Ended

Dec. 31, 2013

Discontinued Operations [Abstract]

Discontinued Operations

Note 2 — Discontinued Operations

On January 12, 2012, PAR Technology Corporation completed its previously announced sale of substantially all of the assets of the PAR Logistics Management Systems Corporation (LMS) to ORBCOMM Inc. (“ORBCOMM”).  The consideration paid by ORBCOMM at the closing with respect to substantially all the assets of LMS aggregated $6,123,000 comprised of $4,000,000 in cash and $2,123,000 in shares of common stock of ORBCOMM Inc. (the Closing Consideration).

In addition to the Closing Consideration, contingent consideration of up to $3,950,000 is payable by ORBCOMM to PAR post-closing in cash, ORBCOMM common stock or a combination of cash and ORBCOMM common stock, at ORBCOMM’s option.  Up to $3,000,000 of the contingent consideration would have been payable based on ORBCOMM achieving certain agreed-upon new subscriber targets for calendar year 2012; however the aforementioned targets were not achieved.

The remaining contingent consideration, up to $950,000, will be payable based on ORBCOMM achieving agreed-upon sales targets for calendar years 2012 through 2014. As of December 31, 2013, the Company has not recorded any amount associated with this contingent consideration as it does not believe achievement of the related targets is probable.

At December 31, 2013, there were no assets or liabilities recorded on the balance sheet, compared to $141,000 of accrued liabilities at December 31, 2012.

During the period ended December 31, 2013, the Company recorded agreed upon working capital adjustments that resulted in a net loss of $211,000 during the year.

The following table summarizes the results from discontinued operations for 2013 and 2012:

	December 31,
Operations	2013			2012
Total revenues		-		$	136
Loss from discontinued operations before income taxes	$	(319	)	$	(348	)
Gain on disposition					2,588
(Provision) benefit for income taxes		108			(793	)
Income (loss) from discontinued operations	$	(211	)	$	1,447