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		June 30, 2015				December 31, 2014
ASSETS
Current assets:
Cash and cash equivalents		$	6,078			$	8,592
Marketable securities			6,533				6,406
Trade account receivables, net			12,979				14,152
Inventories			6,455				6,658
Other accounts receivable			1,439				1,249
Total current assets			33,484				37,057
Property and equipment, net			1,955				1,948
Intangible assets and others, net			3,925				4,416
Long term deposit			50				46
Goodwill			1,466				1,466
Total long term assets			7,396				7,876
Total assets		$	40,880			$	44,933

		June 30, 2015				December 31, 2014
LIABILITIES AND EQUITY
Short term bank credit and current portion of long term bank loans		$	10,390			$	9,416
Current portion of long term notes			-				1,000
Trade accounts payable			5,466				7,588
Other accounts payable			2,338				2,619
Total current liabilities			18,194				20,623
Long term loans from banks			3,629				3,919
Finance lease			37				56
Accrued severance pay, net			26				29
Deferred tax liabilities, net			29				57
Total long term liabilities			3,721				4,061
Stockholders’ Equity:
Preferred stock; $.001 par value, 5,000,000 shares authorized, none issued and outstanding
Common stock; $.001 par value, 25,000,000 shares authorized, 5,865,221 and 5,856,246 shares issued and outstanding as of June 30, 2015 and December 31, 2014, respectively			6				6
Additional paid in capital			7,677				7,505
Accumulated other comprehensive income (loss)			(120	)			325
Retained earnings			4,991				6,284
Micronet Enertec stockholders' equity			12,554				14,120
Non-controlling interests			6,411				6,129
Total equity			18,965				20,249
Total liabilities and equity		$	40,880			$	44,933

 

 

 

		Six months ended June 30,								Three months ended June 30,
N Net loss		$	(1,639	)		$	(1,798	)		$	(803	)		$	(1,613	)
O Other comprehensive income (loss), net of tax:
CCurrency translation adjustment			182				212				383				238
T Total comprehensive loss			(1,457	)			(1,586	)			(420	)			(1,375	)
C Comprehensive income (loss) attributable to the non-   controlling interests			282				149				(3	)			220
CComprehensive loss attributable to Micronet Enertec Technologies, Inc.		$	(1,739	)		$	(1,735	)		$	(417	)		$	(1,595	)

·

Amortization of acquired intangible assets - We are required to amortize the intangible assets, included in our GAAP financial statements, related to the Transaction and the Acquisition. The amount of an acquisition’s purchase price allocated to intangible assets and term of its related amortization are unique to these transactions. The amortization of acquired intangible assets are non-cash charges. We believe that such charges 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-transaction operating results.

·

Amortization of note discount and related expenses - These interest expenses are non-cash and are related to amortization of discount of the UTA Capital LLC, or UTA, notes, the last of which was paid in January 2015. Such expenses do not reflect our on-going operations and all of them were incurred up to the end of fiscal 2014.

	·	Change in fair value of call options and warrants – The change in fair value of the call 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.
	·	Stock-based compensation is share based awards granted to certain individuals. They are non-cash and affected by our historical stock prices which are irrelevant to forward-looking analyses and are not necessarily linked to our operational performance.

·

Expenses related to the purchase of a business - These expenses relate directly to the purchase of the Vehicle Business and consist mainly of legal and accounting fees, finder’s fees and travel expenses. We believe that these expenses do not reflect our operational performance. Therefore, we exclude them to provide investors with a consistent basis for comparing pre- and post-Vehicle Business purchase operating results.

 

		Six months ended  June 30,
		(Dollars in Thousands, other than share and per share amounts)
		2015				2014
GAAP net loss attributable to Micronet Enertec		$	(1,294	)		$	(1,606	)
Amortization of acquired intangible assets			381				136
Change in fair value of call options and warrants			-				308
Amortization of note discount and related expenses			-				56
Stock-based compensation			172				13
Expenses related to purchase of a business			-				290
Income tax-effect of above non-GAAP adjustments			(17	)			(15	)
Total Non-GAAP net loss attributable to Micronet Enertec		$	(758	)		$	(818	)
Non-GAAP net loss per diluted share attributable to Micronet Enertec		$	(0.13	)		$	(0.14	)
Shares used in per share calculations			5,857,951				5,831,246
GAAP net loss per diluted share attributable to Micronet Enertec		$	(0.22	)		$	(0.28	)
Shares used in per share calculations			5,857,951				5,831,246

		Three months ended June 30,
		(Dollars in Thousands, other than share and per share amounts)
		2015				2014
GAAP net loss attributable to Micronet Enertec		$	(588	)		$	(1,274	)
Amortization of acquired intangible assets			192				87
Change in fair value of call options and warrants			-				381
Amortization of note discount and related expenses			-				6
Stock-based compensation			103				7
Expenses related to purchase of a business			-				290
Income tax-effect of above non-GAAP adjustments			(9	)			(8	)
Total Non-GAAP net loss attributable to Micronet Enertec		$	(302	)		$	(511	)
Non-GAAP net loss per diluted share attributable to Micronet Enertec		$	(0.05	)		$	(0.09	)
Shares used in per share calculations			5,859,675				5,831,246
GAAP net loss per diluted share attributable to Micronet Enertec		$	(0.10	)		$	(0.22	)
Shares used in per share calculations			5,859,675				5,831,246

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