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		Year ended December 31,
		2013				2012
Revenues			35,571				17,788
Cost of revenues			22,298				13,790
Gross profit			13,273				3,998
Operating expenses:
Research and development			2,675				777
Selling and marketing			1,170				752
General and administrative			4,179				2,243
Amortization of intangible assets			657				551
Total operating expenses			8,681				4,323
Income (loss) from operations			4,592				(325	)
Interest income (expense), net			(2,293	)			89
Other income (expense)			(2	)			4
Gain on bargain purchase			-				4,623
Income before provision for income taxes			2,297				4,391
Provision (Benefit)  for income taxes			496				(136	)
Equity in profit on of affiliated company			-				41
Net income			1,801				4,568
Net Income (loss) attributable to non-controlling interests			(2,296	)			849
Net income (loss) attributable to Micronet Enertec			(495	)			5,417
(*) Earnings (loss) per share attributable to Micronet Enertec:
Basic		$	(0.097	)		$	1.67
Diluted		$	(0.097	)		$	1.54
Weighted average common shares outstanding:
Basic			5,089,122				3,241,500
Diluted			5,089,122				3,594,872

		Year ended December 31,
		2013				2012
Net income		$	1,801			$	4,568
Other comprehensive income, net of tax:
Currency translation adjustment			1,742				820
Total comprehensive income			3,543				5,388
Comprehensive income (loss) attributable to the non-controlling interests			(2,882	)			157
Comprehensive income attributable to Micronet Enertec		$	661			$	5,545

 

		December 31, 2013				December 31, 2012
ASSETS
Current assets:
Cash and cash equivalents		$	12,825			$	10,611
Marketable securities			6,969				3,183
Trade account receivables, net			13,467				9,914
Inventories			4,324				7,392
Derivative asset - call options			460				945
Other accounts receivable			1,165				1,939
Total current assets			39,210				33,984
Property, and equipment, net			2,440				2,269
Intangible assets and others, net			1,076				1,635
Long term deposit			103				43
Total long term assets			3,619				3,947
Total assets		$	42,829			$	37,931

 

(In Thousands, except Share and Par Value data)

		December 31, 2013				December 31, 2012
LIABILITIES AND EQUITY
Short term bank credit and current portion of long term    bank loans		$	5,058			$	4,689
Current portion of long term notes and convertible debenture, net  of discount			-				1,671
Trade accounts payable			4,361				4,701
Other accounts payable			3,355				3,420
Derivative liabilities- put option			-				73
Total current liabilities			12,774				14,554
Long term Loans from banks			3,130				3,941
Long term notes, net of discount			933				1,370
Finance lease			109				-
Accrued severance pay, net			172				1,138
Deferred tax liabilities, net			113				60
Total long term liabilities			4,457				6,509
Stockholders’ Equity:
Preferred stock; $.001 par value, 5,000,000 shares authorized, none issued and outstanding
Common stock; $.001 par value, 100,000,000 shares authorized, 5,831,246 and  3,241,500 shares issued and outstanding as of December 31, 2013 and 2012 respectively.			6				3
Additional paid in capital			8,053				957
Accumulated other comprehensive income			1,389				233
Retained earnings			8,423				8,918
Micronet Enertec stockholders equity			17,871				10,111
Non-controlling interests			7,727				6,757
Total equity			25,598				16,868
Total Liabilities and equity		$	42,829			$	37,931

 

 

 

 

 

 

·

Amortization of acquired intangible assets - We are required to amortize the intangible assets, included in our GAAP financial statements, related to the Acquisition of Micronet. The amount of an acquisition’s purchase price allocated to intangible assets and term of its related amortization are unique to the Acquisition. The amortization of acquired intangible assets are non-cash charges. We expect that such charges will be nonrecurring and do not reflect our operational performance. Therefore, we exclude amortization of acquired intangible assets to provide investors with a consistent basis for comparing pre- and post-acquisition operating results.

 

 

·

Amortization of UTA’s note discount and related expenses - These interest expenses are non-cash and are related to amortization of discount of the First Note and Second Note. Such expenses do not reflect our on-going operations and most of them will be incurred up to the end of fiscal 2014.

 

·

Change in fair value of call / put options and warrants – The change in fair value in 2013 of the call/put options relating to the Acquisition is recorded as interest expense. The change in fair value is derived primarily from Micronet’s share price and does not reflect our on-going operations.  In 2012, the change in fair value of UTA warrants derived from changes in the price of our Common Stock and does not reflect our ongoing operations as well.

 

·

Stock-based compensation is share based awards granted to certain individuals. They are noncash and affected by our historical stock prices which are irrelevant to forward-looking analyses and are not necessarily linked to the operational performance.

 

·

Gain on bargain purchase - the fair values of assets acquired pursuant to Micronet's acquisition exceeded the purchase price, which was recorded as a bargain purchase gain, and is shown as a separate component of non-operating income. And does not reflect our ongoing operations as well.

 

 

		Year ended December 31,
		In thousands (Except Shares)
		2013				2012
GAAP Net income (loss) attributable to Micronet Enertec			(495	)			5,417
Amortization of acquired intangible assets			657				1,722
Change in fair value of call / put options and warrants			170				(1,286	)
Amortization of discount and change in value of long term convertible debenture,  net			1,641				460
Stock-based compensation			19
Gain on bargain purchase							(4,623	)
Income tax-effect of above non-GAAP adjustments			(99	)			(258	)
Total non-GAAP net income attributable to Micronet Enertec			1,893				1,432
Non-GAAP net income per diluted share attributable to Micronet Enertec			0.36				0.40
Shares used in per share calculations			5,192,485				3,594,872

 

 

 

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