i.d. systems, inc. (idsy)

Washington, D. C. Securities and Exchange CommissionC. 20549FORM10-K(MarkOne)[X]
Annual reports submitted under sections 13 or 15 (d)
1934 of the Securities Trading Act for the fiscal year ended December 31, 2018. []
Transition reports submitted under sections 13 or 15 (d)
During the transition period from ___ to ___, 1934 of the securities trading law.
Commissioner\'s File Number: 1-15087I. D. SYSTEMS, INC. (
The exact name of the registrant specified in the articles of association)Delaware22-3270799(
In another jurisdiction of Stateor (
Company or organization)
Identify the number. )
123 Dith Avenue, Lake Woodcliff, new Jersey07677 (
Main executive office address)(ZipCode)(201)996-9000(
The phone number of the registrant, including the area code)
Securities registered under article 12 (b)
The bill: Common stock with a par value of $0.
Global market share (Titleof class)(
Registered Exchange name)
Securities registered under article 12 (g)
Key points of the act: if the registrant is healthy, a non-indicby check mark
Well-known experienced issuers as defined in Rule 405 of the Securities Act. Yes[]No[X]
If the registrant does not need to submit a report under section 13th or 15, please pass the check mark (d)of the Act. Yes[]No[X]
Check if the registrant (1)
All reports requested by Article 13 or 15 have been submitted (d)
Securities Trading Act for the first 12 months of 1934 (
Or a short period of time required for the registrant to submit such reports),and (2)
This filing requirement has been bound for the last 90 days. Yes[X]No[]
According to S-regulation 405th, check if the registrant has submitted each Interactive Data document that needs to be submitted and submitted electronicallyT (§232.
This Chapter 405)
Within the first 12 months (
Or in such a short time that the registrant is required to submit and publish these documents). Yes[X]No[]
If the declaration of arrears is disclosed under S-regulation 405th, please proceed with prosecution by check markK (§229.
This Chapter 405)
As far as the registrant is aware, it is not included here and will not be included in the final proxy or Information Statement, which is referenced by reference in part 3 of this form 10.
K or any amendments to this form 10K. []
Check if the registrant is a large accelerated file manager, a non-accelerated file manager
A small reporting company.
See the definition of \"large accelerated file manager\", \"accelerated file manager\" and \"small Reporting Company\" in rule 12b
2 of the Trading Act.
Big acceleration film []
Accelerated File []Non-
Accelerated File [](
Do not check if there are smaller reporting companies)
Small report Company [X]
Check whether the registrant is a shell company (
Defined in Rule 12b-
2 parts of the transaction law). Yes[]No[X]
The total market value of the registrant\'s common stock is $0. 01 per share (“Common Stock”), held bynon-
Affiliates refer to the price of the last sale of common shares, and as of June 30, 2018, the last working day of the second fiscal quarter recently completed by the registrant, approximately $65. 6 million.
As of March 28, 2019, the number of outstanding shares of the registrant\'s common stock was 18,213,978 shares.
Part of the reference document by Form 10-
Kportioniii of the registrant\'s 2019 annual meeting of shareholders. D. SYSTEMS, INC.
TABLEOF CONTENTSPagePARTI. Item1. Business s3item1a.
RiskFactors21Item1B.
Staff reviews
Properties37Item3.
Legal proceedings.
Information disclosure on food safetyItem5.
The market in which the registrant\'s common stock, related shareholder matters and the issuer purchase equity securities.
SelectedFinancial Data40Item7.
Management Discussion and Analysis of operational financial status and results
Quantitative and qualitative disclosure of market risks.
Financial statement and supplementary data 57 items 9.
Changes and differences with accountants in accounting and financial disclosure
Control and procedures.
Other information. Item10.
Directors, executive officers and corporate governance
Item 12.
Security ownership of certain beneficial owners, management and related shareholders.
Related party transactions, 98 independent directors 14.
Main accounting fees and services 98 partiv. Item15.
Annex, schedule of financial statements.
Notes on forwarding
In addition to historical information, this annual report on Form 10K of I. D. Systems, Inc.
Contains \"forward-
See the report \"(
Within the meaning of Article 27A of the amended Securities Act of 1933 (
Securities law)
And Article 21 of the Securities Trading Act of 1934, as amended (
Trade Act))
Including information related to our beliefs, plans, goals, expectations, strategies, expectations, assumptions, estimates, intentions, future events, future earnings or performance, capital expenditure and other information of non-historical information. Forward-
Lookingstatements involve known and unknown risks, uncertainties, and other factors that may be beyond our control, may result in our actual results, performance or achievements and future results. performance or achievements that the striker has performed or implied-
Look at the report.
Many of these statements appear in particular under the heading \"business\", \"Selected Financial Data\" and \"Management\'s Discussion and Analysis of financial status and operational results\" in this Annual Report on Form 10\"K.
When the words \"seek\", \"estimate\", \"expectation\", \"expectation\", \"project\", \"plan\", \"think\", \"plan\" are used in this report\" \"continue\", \"intend\", \"believe \", changes in these words or similar expressions are intended to identify forward
Look at the report. All forward-
Our current expectations and assumptions are well-founded.
We believe that our expectations and beliefs have a reasonable foundation, but we cannot guarantee that we will achieve our expectations or that our beliefs will prove correct.
There are risks and uncertainties that can lead to significant differences between our actual results and the forward results.
Look at the statement in this report.
Important factors that may lead to significant differences between our actual results and the results expressed in the forward direction
The outlook here includes but is not limited to: ● future economic and business conditions;
● Loss of any of our major customers or reduction in the purchase of our products by any such customer;
● Markets where our products fail to continue to develop;
We cannot fully protect our intellectual property rights;
● We may not be able to successfully integrate the business, operations and employees of the acquired enterprise;
● The impact of various competition from local, regional, national and other wireless solution providers;
● Changes in laws and regulations or changes in generally accepted accounting policies, rules and practices;
● Changes in technology or products may be more difficult or expensive or ineffective than expected;
And ● the risks and uncertainties listed under the heading \"Risk Factors\" in Item 1A of this report.
This may be something that we don\'t know at the moment or other factors that we currently consider irrelevant, which may lead to significant differences between our actual results and the forward --
Look at the report. All forward-
Forward-looking statements attributable to us or those acting on our behalf apply only to the date of issue of these statements and are in full compliance with the statement of warning contained in this report.
We have no obligation to publicly update or amend any forwarding unless required by law
Find a statement to reflect the event or situation occurring after the date of the event or situation or to reflect the occurrence of an unexpected event or other situation.
NoteRegarding TrademarksI. D.
The system has or has applied for trademark protection. D.
System®And design, I. D.
System logo®Vehicle Asset communicator®, AVRAMP®And design, power fleet®Vision of power fleet®, POWERFLEETIQ®IQ. ®Asset Intelligence®, DidBOX®, FREIGHTCAM®And keyboard controller®. Item1.
It\'s a business company. D. Systems, Inc.
Registered in Delaware in 1993. I. D. Systems, Inc. (
With the subsidiary, \"I. D.
\"Company\", \"we\" or \"we \")
Develop, sell and sell wireless machinesto-machine (“M2M”)
Manage and secure solutions for high security
The value of corporate assets.
These assets include industrial vehicles such as forklifts and airport ground support equipment, leased vehicles, and transportation assets such as dry truck trailers, refrigerated trailers, rail vehicles and containers.
Our patent system uses radio frequency identification (RFID), Wi-
Fi, Bluetooth, satellite or cellular communications, and sensor technology and software to meet the needs of organizations to control, track, monitor and analyze their assets.
Our solutions enable customers to achieve tangible economic benefits through timely and informed decision-making, thereby improving the safety, revenue, productivity and efficiency of operations.
In the 2019 month, we signed the Merger Agreement and Plan (
\"Pointer merge Protocol \")
Working with PowerFleet, Inc. , a wholly-
Subsidiaries of the company (“Parent”)
Pointer remote positioning Co. , Ltd. (“Pointer”)
, PowerfleetIsrael Holdings Limited, a wholly-
Subsidiaries of the parent company (
\"Pointer hold \")
Israel power Fleet Acquisition Co. , Ltd. , a wholly-
Subsidiaries of pointer holding company (
\"Pointer merge child \")
, According to this rule, the pointer merge will be merged with the pointer and merged into the pointer as a direct, complete
Subsidiaries of pointer holding company (
\"Post merge \")
As an exchange of consideration, including cash and shares of the common stock of the parent company.
Also on March 13, 2019, we entered into an investment and trading agreement with the pointer merger agreement (
\"Investment Agreement \")
Parent company of PowerFleet US acquisition company, a wholly-
Subsidiaries of the parent company (
\"IDS merge child \")
And ABRY senior Stock Company v. P.
And ABRY senior Stock Company
Investment funds V. L. P.
According to this, we will reorganize the new holding company structure by merging IDS subsidiaries and merging them into the company, and the company will survive as a whole.
Subsidiaries of the parent company (
\"IDS merge \")
, According to which the parent company will issue and sell the newly created Series a convertible preferred shares of the parent company in private equity to fund the partial cash consideration payable in the pointer merger.
Due to the expected transactions of the pointer merger agreement and the Investment Agreement (
\"Merge Transactions \")
We and the pointer will each become
A subsidiary of the parent company.
The merger transaction was unanimously approved by the board of directors of the two companies, but subject to customary closing conditions, including the approval of our shareholders and shareholders of Pointer, is expected to end in the summer of 2019.
For further discussion on merge transactions and related party transactions, see Item 1A \".
Risk factors for \"Project 8.
Financial statements and supplementary information-Note 21-
Follow-up events.
In 2019, we completed the acquisition (
\"CarrierWeb Acquisition \")
Of almost all of carrierweb\'s assets, L. L. C. , an Atlanta-
Real-based providerstime in-
Electronic recording equipment, mobile communication technology
And the way the trailer tracks.
The assets we acquired in the CarrierWeb acquisition will be integrated into our logistics visibility solutions and products.
The CarrierWeb acquisition enables us to provide a complete height
Provide integrated logistics technology solutions for existing customers and potential customers, and immediately increase the number of more than 70 customers and more than 9,000 monthly user units.
On the 31st of 2017, we and all of us
Keytroller, LLC, a subsidiary of Delaware Co. , Ltd (“Keytroller”)
Acquired almost all assets of Keytroller, LLC, Florida LLC (
\"Remote Control Collection \").
The business we got in the keycontroller acquisition was to develop and sell electronics that manage forklifts and construction vehicles.
The Keytroller acquisition provides us with a complete set of industrial fleet management products that can cover any scale of fleet and budget, and provides a larger scale of service to our industrial truck business, from the point of view of products and income, mainly through the network of forklift dealers selling forklift management equipment, to provide solutions for different fleet sizes at a wide range of price points.
We focus our business activities on three major business solutions :(i)
Solutions for industrial truck management (
\"PowerFleetfor Industrial \"), (ii)
Logistics visibility (LV)Solutions (
\"Logistics power fleet \")(
Previous \"management of transport assets \"), and (iii)
Car Networking Solutions (
\"Car power fleet \").
Our industrial truck management solutions enable our customers to reduce operational risks and improve operational efficiency, including monitoring unsafe activities, identifying facility equipment and damage to goods, reduce operating costs and capital expenditures by accurately and reliably measuring and controlling fleet activities and ensuring compliance with certain safety regulations.
The solution also enhances security in key infrastructure areas such as industrial facilities and airports by controlling access and restricted use of vehicles and equipment.
Our logistics visibility solutions enable our customers to increase revenue for each asset deployed, optimize fleet size, and improve monitoring of sensitive goods.
Our solutions for connected vehicles include the unique internet-of-Things (“IoT”)
Similar project to the project we delivered to Avis Budget Group(“Avis”).
These engineering projects help our customers change their operations.
For Avis, our rental fleet management platform helps create higher levels by tracking vehicle data more accurately, such as fuel consumption and mileage readings, and improving customer service by speeding up the leasing and return processes
In addition, our \"car sharing\" wireless solution enables car rental companies to establish a network of vehicles strategically positioned around the city or on the company\'s campus to control the remote movement of vehicles through the security lock and unlock functions, manage member bookings via smartphone or internet and collect vehicle usage fees to members on an hourly basis.
In order to provide a deeper understanding of asset operations, we have developed a cloud-
Software applications based on I. D.
System analysis (“Analytics”)
Designed to provide a single integrated view of asset activity across multiple locations that provides enterprise-
Broad benchmarks and peers
Industry Comparison of Key Performance Indicators (“KPIs”)
Related to the performance of the managed assets.
The analysis enables the value of the KPI to be calculated and is used to determine the cost-benefit metrics that convert the KPI value into a monetization indicator.
In addition to our analysis and software --as-a-
We launched Lucy, a virtual assistant for deep learning voice integration \".
We expect that our growing database of operational data from monitored assets and operational workflows, coupled with Lucy\'s contextual learning, will allow us to create industry benchmarks, used to tell our customers about their peers
We look for analytics, and the data contained in it, to make an increasing contribution to revenue, to further differentiate, to add value to our solutions, and to help us stay ahead of the wireless asset management market.
We provide solutions for execution, department and site
Level management within the enterprise.
We also use channel partners such as independent dealers and OEMs (OEMs)
Who might choose us to put a white label on our product.
Typically, our initial system deployment is the basis for potential expansion across the customer organization.
We work closely with our customers to help maximize the use of our systems and demonstrate the value of the business
Extensive deployment. Post-
When implemented, we negotiate with our customers to further expand and customize the advantages of the enterprise by providing enhanced analysis capabilities.
Wemarket and sell our solutions to a wide range of customers in business and government departments.
Our customers operate Indian markets such as automotive manufacturing, heavy industry, retail and wholesale distribution, transportation, aviation, aerospace and defense, homeland security and vehicle leasing.
According to the revenue in 2018, our main customers are Avis and Wal-Mattis department store
Our solutions design and implement wireless IoT and M2M asset management solutions
Level and Enterprise
Provide fair return on investment to our customers.
Our solution can be for any campus
Based on assets or \"excessivethe-road”assets.
Truck Management Solutions (
\"Industrial power fleet \")
Campus asset management solutions-
Type and area-
Integrated wireless devices based on assets
Conduct Board control, location tracking and data processing of enterprise assets to provide real-time
Time visibility and two-
Communication with such assets.
These systems provide technical advantages that are different from inventory, warehouse management, and logistics tracking systems.
For example, although the inventory tracking system relies on continuous wireless connectivity to perform core functions, our system only needs regular wireless communication, our on-
Asset equipment can design its core functions independently. Our enterprise-
Class software Analytics and Lucy can run in the cloud or after the customer\'s firewall. Ourcampus-
The asset-based management system consists of four main parts: ● micro-wireless programmable computers attached to assets;
These wireless devices can be accessed via Wi-
Fi, Bluetooth, viathe proprietary IRF protocol or via cellular link; ●optional,IRF-based, fixed-
Location communication infrastructure consisting of network equipment and two-
Wireless communication capability and optional IRF-based location-
Launch beacons for enhanced indoor location calculations●application-
A specific middleware server, usually hosted in our data center, can also be hosted on the customer\'s local network (LAN)
Or enterprise wide area network (WAN);
● Owner side-
User software, this is a user.
A friendly web application that provides visibility and control over the system database and is hosted in the same data center as the middleware.
As mentioned above, our enterprise software is flexible enough to store thousands of customers, sites or assets in a hosted customer or cloud configuration.
Each of these system elements can process and store information independently to create a unique patent system, which reduces the risk that a single point of failure may compromise system integrity or data and asset security. Our on-
Asset hardware stores and processes information locally so that it can automatically control assets and monitor asset activities independently regardless of the status or availability of other system components. Our on-
Even outside the wireless range of any other system component, or if the middleware is not available, the asset hardware performs its functions.
In addition to automatically linking monitored mobile asset data to the middleware of our system, our IRF infrastructure devices process data independently and perform programmable application logic.
Middleware connected to the system can take advantage of secure cellular communication, allowing remote-
Managed server software for local IT infrastructure cannot be accessed.
Our cellular \"hot spots\" option allows our products to be equipped with assets such as aviation and construction equipment that transcend the boundaries of the campus.
Our middleware application is populated with the database of the system, designed to mitigate the impact of any computer disruption that may affect the real-time database
Time availability of the database.
Finally, our client software only interfaces with the database, not directly with our communication infrastructure or on-
Asset hardware, which limits access to system information and limits damage to system information to minimize the use of network bandwidth.
Our industrial truck management solutions allow fleet operators to reduce operating costs and capital expenditures, comply with certain safety regulations and enhance safety.
To help improve the safety and safety of the fleet, our solution provides access control to vehicle operators to ensure that only trained and authorized personnel are able to allocate using material handling equipment and collision sensing
Our solution also offers: Contactless operator identification;
Automatic wireless data communication;
Paperless sports/idle inspection, electronic vehicle inspection list in compliance with government safety regulations;
Automatic Report of automobile safety problems; automatic on-
Vehicle intervention for users such as disabling devices
Security parameters that can be defined;
And remote vehicle deactivating function, allowing the vehicle to be closed manually or automatically under the user
Define conditions.
In addition, our solutions are compatible with a variety of electronic driver identification technologies and are delivered through global positioning systems (GPS)
RFID technology and geographic information
Fenc limits vehicles to operate in prohibited areas, or alerts when entering those areas without authorization.
Our solution also supports optional sensing elements to provide additional vehicle utilization data, including load detection data, battery data, and active meter data.
To analyze and benchmark vehicle utilization and operator productivity, our solution automatically records various activities and makes detailed performance comparisons to help management make informed decisions about vehicles and human allocation.
This can save operating costs by reducing fleet and personnel and increasing productivity.
Our solution is also available.
Time and historical visibility of vehicle movement and other advanced asset management options.
To help reduce fleet maintenance costs, our solution can automate and implement preventive maintenance plans in the following ways: ● Upload usage data wirelessly from each vehicle;
● Define the various intervals and standards for performing preventive maintenance;
Weighted, user-based-
Define variables;
● Vehicles reporting in advance of upcoming preventive maintenance incidents;
● Automatically send reminders to individual vehicles or operators through the system SMS module;
And enable remote lock
Vehicles for late maintenance.
Our solution also enables maintenance personnel to locate and retrieve vehicles due to service through the system\'s optional graphical viewer software, and can provide automatic data feeds to our customers\' existing enterprise maintenance software systems
The specific application of our solution in the industrial fleet management and security market is vehicle safety, especially in the areas of airports, harbors and other key infrastructure.
Airport market-
A specific version of our system is calledAvRamp®Reference is made to the airport ramp area where the aviation industry and aircraft maintenance equipment operate.
To date, the most important commercial deployment of the AvRamp system is at Newark Liberty International Airport for United Airlines, Chicago O\'Hare International Airport and Dallas-
Fort Worth International Airport (AMR (
American Airlines and American Eagle Airlines).
Logistics Solutions (
\"Logistics power fleet \")(
(Original \"transportation asset management solution \")
Our mobile system manages remote, \"excessivethe-
Our asset intelligence subsidiary provides road \"assets.
These systems provide mobile devices.
Asset Tracking and status-
Monitoring solutions to meet the transport market\'s desire to increase visibility, security and productivity in the global supply chain.
By leveraging the combination of cellular and satellite communications and networks
Logistics visualization based on data management technology (LV)
The product range provides tools for shippers and carriers to better manage their tractors, drivers, trucks, refrigeration equipment (Reefer)
Fleet of trailers, dry trucks, chassis and containers.
Our LV solutions enable quick access to actionable intelligence to better utilize, control and protect customers\' shipments --Carry assets.
Our solution consists of five main elements: ● cellarator satellite communicator and Bluetooth connected to the asset;
● Gpsreceiver, providing latitude and longitude location repair based on logical transmission residing in the communicator;
Owner\'s browser-
Provides visibility and two based on the graphical user interface
Mode Control of system database (
Data can also be passed to customer via XML or web service data feed);
● Patented power management intelligence to ensure reliable system performance in the power supply
An environment of hunger;
And ● several sensor types that provide additional status information for remote assets, including cargo, motion, light and tire inflation.
To improve asset utilization, our LV solutions can increase overall operational efficiency, increase revenue and reduce the number of assets required
Integrated workflow for truck tractors and drivers to control tasks and work changes;
Electronic drive logging (ELD)
Inspection report for regulatory compliance ● monitor asset pool size based on user
Clear requirements;
● Generate a dormant report under the flagUse of assets;
● Remind the driver to the location of the nearest empty asset to pick it more quicklyup;
When the assets exceed the specified unloading time, a trailer detention alert is provided.
To better control the remote assets, our LV solution is fully-
Length of cargo sensor; ●geo-
The function of reminding customers when assets approach or leave their destination; and●on-
Use motion sensors and proprietary logic to identify the start and end of the drive.
In order to improve the security of assets and goods, our LV solution provides the following functions: ● assetlockdown for automatically sending emails
When a move is detected outside of the user, send a message or SMS to the customer-
Define time periods;
● Emergency Tracking function, which can track assets more frequently if theft is expected; ●geo-
Fence, can remind our customers when the assets enter the prohibited geography or location; and●nearreal.
Time sensors that can alert according to impact changes (vibe)
Sound, light, air pressure, temperature and humidity.
Solution (
\"Car power fleet \")
In our connected vehicle solutions, we engage our customers with unique IoT, M2M challenges that enable them to have a considerable competitive advantage or increase revenue or reduce operating costs.
For traditional rental fleet management, our system is designed to enhance the leasing experience for consumers by providing information that can be used to increase revenue, reduce costs and improve customer service, and to benefit the leasing company.
Our rental fleet management system automatically uploads vehicle identification numbers, mileage and fuel data when the vehicle is in and out of the rental lot, which can greatly speed up the traveler\'s rental and return process, and provide more timely inventory status, more accurate billing data for leasing companies, resulting in higher fuel
Related income and the opportunity to use customer service personnel for more productive activities such as checking whether the vehicle is damaged and helping the customer carry their luggage.
Our \"car sharing\" solution allows rental car companies to remotely control, track and monitor their rental vehicles anywhere they park.
Is it a traditional \"pod\"
Basic rent or emerging rent-
Anywhere model, system also (i)
Manage member bookings via smartphone or Internet, and (ii)
Collect vehicle usage fees to members on an hourly basis.
The whole process-
From remotely controlling car door locks to tracking car mileage and fuel consumption to transaction billing --
It is automatically carried out by the integration of wireless vehicle management technology and fleet management software of leasing companies.
The analysis of industrial trucks and logistics assets, deep Image learning and the lucyouanalytics platform provide our customers with an overall view of asset activity across the enterprise supply chain.
Our image deep learning system allows us to process images from FreightCAM and other sources and identify key aspects of operations and geospatial information, such as location, work being done, how the goods are loaded in the type of goods, if there are any obvious problems such as damage.
Lucy, our deep learning voice integration Virtual Analyst, can help make data and alerts actionable and help customers by giving them an tireless virtual assistant. Thesecloud-
Software-based applications provide a single, integrated view of industrial asset activity across multiple locations, generating enterprise-
Peer benchmarking
Industry comparison, have a deeper understanding of asset operations.
Our analytics platform enables management to make smarter and more effective decisions, improve asset performance standards, increase productivity, reduce costs, and enhance security.
Specifically, our analytics platform allows users:
Practical Enterprise benchmark for industrial asset utilization and safety;
● Revealing differences and inefficiencies in asset activities in different locations and geographies;
● Identify opportunities to eliminate or redistribute assets with sufficient corporate awareness to reduce capital and operating costs;
● Help balance the portfolio and inform acquisition decisions;
● Reveal activity trends and forecast asset demand over time;
● Performance Comparison with a wide range of industries
Specific benchmarks;
And ● maintain action and follow up on the project and communicate with the appropriate person to solve the problem or upgrade the problem.
We look for analytics, Image deep learning, and Lucy and the data contained in it to make an increasing contribution to revenue, further differentiate and add value to our solutions, and help us stay at the forefront of the wireless asset management market we serve, although there is no guarantee that the analysis will do so and to what extent.
The growth strategy aims to be the world\'s leading provider of wireless solutions for managing and protecting corporate assets.
In order to achieve this goal, we intend to: increase the sales of existing markets to existing customers in the following ways and seek opportunities with new customers: ● centralize our business solutions through vertical markets,
● Maintain a sales and marketing team focused on identifying, seizing and managing revenue opportunities with the main goal of expanding our customer base to achieve wider market penetration;
Implement improved marketing, sales and support strategies;
● Use the analysis software we provide (i)
Shorten our initial sales cycle by helping potential customers identify and quantify the expected benefits of our solutions ,(ii)
Accelerate the transition from initial to rolling
Develop a plan by helping customers achieve and demonstrate their expected benefits, and (iii)
Through the long-term accumulation of service income
Term of SaaS contract;
Development Asset Management-
Specific data analysis and image deep learning capabilities that differentiate our products, add value to solutions for large enterprise customers, and generate incremental revenue at high profit margins;
Develop channel partners to provide new sales, marketing, distribution and support networks.
Expand new applications and markets for our technology in the following ways: ● seek opportunities to integrate our systems with computer hardware and software vendors, including OEMs (OEMs)
Transportation Management System (TMS)
Warehouse Management System (WMS)
Enterprise Resource Plan (ERP)
Field Management System (YMS);
● Establish relationships with global distributors to bring our systems to international markets and sales;
We believe that the acquisition of these companies will enhance the functionality of our solutions and expand their applicability.
Products and services we provide customers with integrated wireless solutions to control, monitor, track and analyze enterprise assets.
Our solutions include hardware and software, as well as hosting, maintenance, support, and consulting services.
The following table lists the period of our revenue by product line: December 31 YearEnded, 201620172018 Industrialtruck solution $19,842,000 $23,705,000 $30,001,000 Logisticsvisibility solution 15, 838,00014, 80,00013 486,000 Connectedvehicle solution S1, 142,0002, $577,000 $36,822,000 $40,958,000 $53,064,000 Industrial Truck management software.
All kinds of installation and users
Interface options, our on-
Asset hardware is designed to be installed quickly and easily and provides autonomous means of asset control and monitoring.
Our hardware: ● container San integrated computer with product programming
Specific applications and advanced wireless transceivers with a communication range of up to about 1-half mile;
● Control device access with multiple electronic interface options;
● Compatible with access security systems for most existing facilities;
● Through the built-in paperless electronic security checklist
Display and keyboard;
● Wirelessly and automatically upload and download data for other system components;
● Perform monitoring and control functions at any time independently of RF or network connection;
And intecatesa more
Voltage power supply designed to alleviate electrical anomalies.
Wireless communication.
Many of our system deployments take advantage of existing Wi-
Real Fi network
Wireless data communication and location tracking.
Area for Wi-
Fi is not practical, the system needs at least one fixed-
Locating a communication device, called a wireless asset manager, is used to link the monitored mobile asset to a customer\'s computer network or a remotely hosted server.
Our wireless asset manager
The RF communication method with the monitored assets can communicate on LAN, WAN or cellular communication.
The use of the wireless asset manager makes the system configuration options and scalability more flexible.
A wireless asset manager is enough to operate the entire asset management system.
For the extended, real
Wireless asset managers can add time data communication and location tracking incrementally as needed.
Each wireless communication product also allows system setup and on-
Change asset functionality without physical interface with on
Asset hardware that can save a lot of time and money.
Each of our wireless asset managers: ● integrate an integrated computer, program with a specific product application, and an advanced wireless transceiver with multiple communication ranges-half mile;
Unlimited number of accommodation
Hardware equipment of assets;
● Automatic Call and download data with other system components; ●employsbuilt-in self-
Diagnostic ability;
Configurable to achieve broad asset management objectives.
Private service software.
Each of our system deployments requires at least one of our server software hosting assignments that automatically manage our hosting system databases and on-
Asset hardware via Wi
Fior Wireless Asset Management.
Our private cloud service software: ● a set of Windows services;
● Automatically process data between our device and our hosted system database;
● Communicate with wireless asset managers to send and retrieve system data;
● Automatic event scheduling, including database archiving and diagnostic notifications;
● Interface with some existing external systems, including maintenance, man-hour cards and training systems;
● Support remote control/management of event processes;
● Automatic diagnosis of system components;
And cars
Send event alerts and customizable reports.
Privet-Client software.
Our private cloud network
Client software provides intuitive and simpleto-
User interface.
The software is deployed as I. D.
Web applications hosted by the system.
The software only interfaces with the System database, while with our communication infrastructure or on-
Asset hardware, which limits access to system information and limits damage to system information to minimize the use of network bandwidth.
At any given time, an unlimited number of clients can be used on the network.
Our private cloud network
Client software: ● The location, status and inventory of the vehicle can be displayed-
Real time and history-
In each area of the facility; ●allowsreal-time, two-
Text communication methods, including broadcasting text paging to all operators at the same time;
● Search, classify and analyze assets according to parameters such as usage/exercise time, idle time, location, status, group and maintenance status;
● Display and print the pre-defined special report;
● Allow management, customers and vendors to make remote access through any Internet-based browser application.
Our vehicle management system can meet a variety of customer needs and information technology needs. OurCompany-
The hosting solution leverages our private business hosting center.
We also provide public cloud
Provide basic services to small and medium-sized customers.
Logistics visualization product sharing software.
We offer multiple hardware configurations to meet different remote asset types (e. g.
Refrigerated trailers, domestic containers, chassis and railcars)
And customers-
Specific requirements.
Our hardware options include: ● Integrated color mobile data terminals integrated into the tractor/truck CAN bus, including integrated cellular and Bluetooth communication functions integrated with GPS;
Integrated M2M computer programmed with product-
Specific applications for cellular or satellite transceivers, Bluetooth and GPS receivers;
● Solarpanel and circuit to keep on-charge
Power supply group of asset equipment;
● Power hardware when sealed lead acid, lithium battery or super power supply is not used
Tied from the power supply;
Some products can be connected to the existing power supply by wire (e. g.
On the tractor). ClientWebsite.
We have a hosting website that provides Internet access to information about our customer\'s assets.
Install on-
Assethardware provides customers with access to VIP sites where they can configure hardware, establish user passwords, IDs, and access rights.
Our customer website: ● display sa users-
A configurable dashboard highlighting key asset information for an enterprise;
Have the ability of e-commerce
Mail the dashboard to the distribution list according to the time interval established by the customer;
● Provide asset status, alerts and history including location, landmark and sensor information;
● Provide latitude and longitude position information for each asset based on reverse code;
● Display the asset location on the geographic map;
● Generic user configurable reports that can be accessed via website or email
Mailing to the distribution list at intervals established by the customer;
● Allow customers to \"ping\" assets to receive updated location reports;
Allows the client to set up a unit (s)
\"Emergency Tracking\" to increase the frequency of reporting during the specified time period. DirectData Feed.
In addition to the asset information provided on the website, we also provide direct feeds of data to customers through XML or web services.
Feed meets established industry practices such as TTIS (
Trailer tracking interface standard)
To easily integrate to the legacy system of the client or third
Party software package.
ConnectedVehicle solution shardware. Our next-
The generated hardware is installed quickly, easily and concealed into the diagnostic port of the vehicle and provides autonomous asset control and monitoring means. Our on-
Asset hardware: ● container San integrated computer programmed with product-
Specific applications of cellular transceiver and GPS receiver;
● Perform monitoring functions such as fuel level, mileage, speed and critical status independently of network connection;
● Control vehicle access and door lock;
● With most new-
Motor vehicle model;
And ● upload and download data wirelessly and automatically to and from other system components. ServerSoftware.
At least one server software needs to be installed for our system deployment, which can automatically manage the system database and on-asset hardware.
Our server software: ● a set of Windows services;
● Automatically process data between our equipment and the system database;
● Communicate with on-
Asset hardware for sending and retrieving system data;
● Interface that can be integrated with existing mobile applications to support terminals
Control function of customer vehicle;
● Interface with external systems, including billing, geographic location
Location, maintenance and fleet management system;
● Automated event scheduling including database archiving, performance monitoring and diagnostic notifications;
● Automatically diagnose system components and manage firmware through air upgrade;
Automatically send event alert customizable reports via API and email.
Our connected vehicle management system can be provided as any company-or customer-
Managed solutions that meet customer needs and information technology needs. Our Company-
The hosting solution leverages our business hosting center.
Service hosting service.
We offer system servers and application software using our system as a remote hosting service in the company\'s hosting center.
This approach can help companies reduce support costs and improve quality control.
It separates the system from the limitations of the customer\'s local It network, which helps to reduce their system support and make It easier for them to get the benefits of system enhancements and upgrades.
Our hosting services typically provide extended maintenance and support services in a number of ways
Annual service period, automatically renewed after the end of the initial period.
A service (“SaaS”).
We offer system monitoring, service desk technical support, upgrade program development, routine diagnostic data analysis, and software update services as part of the ongoing contract terms.
These services ensure that the deployed systems maintain optimal performance throughout the contract term and provide annual access to newly developed features.
Maintenance Service.
We provide warranty on the hardware components of the system.
During the warranty period, we can replace or repair the defective hardware.
We also provide extended maintenance contracts to our customers and provide continuous maintenance and support based on time and materials.
Customer support and consulting services.
We have developed a framework for each stage of system training and support, providing our customers with structure and flexibility.
The main training stages include hardware installation and trouble shooting, software installation and trouble shooting, \"training-the-
Asset hardware operation, initial training of software users, training of system administrators, training of information technology problems, temporary training during system start-up and training of advanced software users.
Training services are increasingly available through scalable online interactive training tools.
Support and consulting services are priced according to the level of training required by the client.
To help our customers get the most out of our system, we provide extensive documentation and support, includes video, interactive online tools, a hardware user guide, a software manual, a vehicle installation trouble shooting guide, and an upgrade program.
We provide consulting services in our independent capacity.
Separate services, study the potential benefits of implementing a wireless rapid management system and act as part of the system implementation itself.
In some cases, customers will pre-pay for our long term maintenance, support and consulting services.
In these cases, the amount of payment is recorded as deferred revenue and the revenue is recognized during the service period.
In the new product development in 2018, we continued to invest in R & D and released the following notable products: ● we launched and developed our logistics visibility platform products to a large extentandBluetooth-
Tracking devices enabled; a camera-
Monitoring sensor based on wireless freight;
There are also a few Bluetoothenabledsensors;
● Completed the development and commercialisation of Avis unified remote information processing platform integrated with Avisconnected car rental management system.
The solution includes dedicated hardware devices, middleware for security and connectivity, cellular network utilization, servers-
Integrate side asset management and monitoring with a complete application programming interface into Avis\'s rental management system;
We present an OC53, a simplified operator control system for industrial truck management.
This new product uses Bluetooth for data communication and uses portable tablets and Android applications as a software management platform to create a completeDisconnect, IT-
Free control and management system for small customer sites.
Sales and marketing our sales and marketing objectives are to achieve broad market penetration with a focus on expanding business opportunities with existing customers and ensuring the safety of new customers.
Wemar markets our systems directly to commercial and government agencies and through indirect sales channels such as OEMs and industrial equipment distributors.
In addition, we are actively establishing strategic relationships with key companies in the target market.
Includes complementary hardware and software vendors and service providers
Further penetrate the market by embedding our products into our system monitoring assets and integrating our solutions with other systems.
We pass on our system to execution, department and site
Level management within the enterprise.
Typically, our initial system deployment is the basis for potential expansion across the customer organization.
We work closely with our customers to help maximize the use of our systems and demonstrate the value of the businessExtensive deployment.
Sell our wireless solutions for a wide range of customers in business and government departments.
Our customers operate in different markets such as automotive manufacturing, retail, shipping, freight, heavy industry, wholesale distribution, aerospace and defense, homeland security and vehicle leasing.
In the year ended December 31, 2018, we generated $53 in revenue.
1 million with Avis and Walmart-
Wal-Mart Stores Ltd.
18% and 10% of our income, respectively.
During the year ended December 31, 2017, we generated $41 in revenue.
Million with Wal-Mart-Mattis department store
16% of our income.
During the year ended December 31, 2016, we generated $36 in revenue.
8 million with Wal-Mart-
Wal-Mart Stores Ltd.
18% of our income.
The company signs a master agreement with the customer in the normal business process.
These agreements define the terms of the company\'s sales of products and/or services to applicable customers, including but not limited to terms such as payment, support services, termination and transfer of rights.
These agreements usually require the company to assume obligations only when the product or service is actually sold to the customer.
We strive to build long term
Establish long-term relationships with our customers to maximize opportunities for new app development and sales.
The competitive market for our solutions is growing rapidly, with fierce and fragmented competition.
Our target market is also affected by rapid changes in product technology, changes in customer needs, regulatory requirements, and frequent launch of new products and services.
Many companies have developed or are developing and marketing software and hardware for wireless products that currently compete with our solutions or will compete directly with our solutions.
We compete with organizations of different sizes, including many small start-ups
Like big companies,
Capital organization.
While some of our competitors are focused on providing wireless asset management solutions, many are involved in wireless technology as an extension of the wider business.
Many of our big competitors are able to invest heavily in the development and deployment of wireless solutions.
As government and commercial entities expand the use of wireless technology, we expect that competition will continue to increase in our target market.
We try to distinguish ourselves from our competitors by focusing on three major business solutions :(i)
Industrial Truck Management Solutions ,(ii)
Logistics visualization solutioniii)
Connected Vehicle Solutions.
This important point allows us to guide product development specifically for our target market. Our on-
Asset equipment is designed to operate independently of other system components, allowing continuous asset control and data collection even if the asset is not within the scope of wireless communication.
We believe that our proprietary technology and our experience in designing and developing products for the target market make us stand out from those markets.
In each of our markets, we will encounter different competitors due to the dynamics of each market.
In the industrial truck asset management market, due to our intellectual property rights and proprietary solutions, we do not know that any competitor can provide the precise functionality of our system;
However, competitors do offer similar solutions to meet the same customer needs as our products.
These companies include emerging companies with limited operating history such as gem One Corp. ,TotalTrax Inc.
And have a longer operating history, higher visibility, significantly higher financial, technical and marketing resources than our company, such as Crown Equipment.
In the logistics visibility solutions market, we work with Omnitracs, LLC, SkyBitz, Inc. , Orbcomm Inc.
And Spireon, Inc.
We try to differentiate our solutions in this market by providing the choice of communication mode (
Satellite or Cellular)
Patented battery management technology, sensor options, and installation configuration (
Tractors, trucks, refrigerated trailers, dry truck trailers, household containers, flatbed trailers, covered hoppers and tanker railcars, and chassis).
In the networked vehicle solutions market, we have solutions for traditional airports
Based on rental fleet management, mainly competing with OEM Connected Vehicle Products
Market-connected car technology providers and existing handheld devices are widely used by car rental companies.
At present, the main OEMs we are competing for are OnStar Corporation, a subsidiary of GM, Ford SYNC and Toyota Internet;
After the main
Our competitive market provider of connected automotive technology is a mainland company;
The main hand-held equipment suppliers that compete with us include Motorola and yitamai, which was acquired by Honeywell International.
Our remote decentralized fleet management solutions mainly compete with companies in traditional car-sharing markets such as Hertz, enterprise, car2go and peersto-
Peer car sharing services like Turo.
Large system integrators and some national cellular wireless providers have begun offering solutions that compete with our solutions, including third-party hardware, firmware, and software.
In the market for both rental solutions, our competitive position varies depending on our patented products --
Fully automated, easy to install, safe, cost-
Effective car rental system.
R & D our R & D team has expertise in software and firmware development, database design and data analysis, wireless communications, mechanical and electrical engineering, and product and project management.
In addition, we use external contractors to complement our team in the software and firmware development, digital design, test development, and product areas --level testing.
In general, the focus of our research and development efforts is to simplify the implementation, support and utilization of our systems;
Reduce the cost of our system;
Improve the reliability of our products;
Extend system functions to meet customer and market needs;
Improve existing products with technological advances;
And build further competitive advantage through our portfolio of intellectual property products.
In 2018, we also focused on R & D investments in several key areas: ● improve the reliability and performance of our legacy product linesthe-
Road asset management solutions, including products for dry truck trailers, intermodal containers and chassis;
● Start new product features for Avis, prepare for our project expansion, including key new features that can expand the car rental function;
● Optimize our industrial truck collision algorithm so that the solution is completely self-contained
Calibration and self
Installation and ability to distinguish between critical and non-critical
Events of significant impact for security and accountability purposes;
● Improve the performance and expansion capabilities of our software for industrial truck Asset Management and excessivethe-
Road Asset Management, designed to improve customer experience and reduce support needs;
And ● Improve business intelligence and data analytics tools to quantify and simplify the realization of customer benefits within a single deployment facility, across businesses, and compared to peers in the same industry.
Intellectual property protection experts try to protect our technology and products through a variety of intellectual property protection, including seeking patent protection in the United States and certain foreign jurisdictions.
Due to differences in patent law and laws relating to ownership, the scope of protection provided by the United StatesS.
The patents or ownership we have may be different from those of our foreign counterparts.
Strategically appropriate, we will try to track down people suspected of infringing our patents and monetize our intellectual property as much as possible. I. D.
The system has established a patent and patent application portfolio related to all aspects of its technology and products.
March 21, 2019, I. D.
System patent portfolio includes 24 U. S.
Patent, 4 US patentsS.
1 patent application, 1 foreign patent application, 1 foreign patent application.
With the timely payment of all maintenance fees, the United StatesS.
The patent is valid between 2019 and 2038. I. D.
The system also has foreign patents and pending applications related to wireless asset management systems, connected car products, and new features added to our vehicle management system.
No patent or patent family is considered an important part of I. D.
System business. I. D.
System subsidiary of Asset Intelligence Co. , Ltd (“AI”)
It also uses patents to protect all aspects of its intellectual property assets.
The AI patent portfolio focuses on methods, systems and devices that manage mobile assets and reduce power consumption of mobile assets.
As of March 18, 2019, the artificial intelligence patent portfolio includes 24 US patents. S. patents.
Due to the timely payment of all maintenance fees, the United StatesS.
The patent is valid for the period from 2021 to 2034.
No patent or patent family is considered important for the AI business.
TrademarksWehave, or the place where an application has been filed for trademark protection. D.
System®And design, I. D.
System logo®Vehicle Asset communicator®, AVRAMP®And design, power fleet®Vision of power fleet®Fleet IQ®IQ. ®Asset Intelligence®, DidBOX®, FREIGHTCAM®And keyboard controller®.
In our product development and sales efforts, we try to avoid infringement of known ownership by third parties.
However, in a rapidly developing technology environment, it is difficult to proceed with certainty, in which there may be a large amount of patent application expenses, many of them are confidential about similar technologies when the application is submitted.
If we find out that our product is in violation of Article 3
In the absence of substantial restructuring, we may not be able to obtain a license to continue to provide such products;
● Successfully transform products to avoid infringement;
● Obtain a license (if any) on commercially reasonable terms );
Or ● In the absence of substantial costs and damages, the successful filing of infringement proceedings Or settlement.
Any claims against us in connection with the infringement of a third person
Even without merit, party ownership may result in a significant amount of expenditure on financial and management resources, or in a ban on the distribution of certain products.
These claims can have a significant adverse effect on our business, financial position and results of operations.
Our software products are vulnerable to unauthorized replication and use, and this unauthorized use is difficult to regulate.
In general, our efforts to protect our intellectual property rights through patents, copyrights, trademark and trade laws and contractual safeguards may not be able to effectively prevent the theft of our technology, or prevent others from developing and designing products or technologies similar to or competing with the products or technologies we develop.
Our failure or inability to protect our ownership may have a significant adverse effect on our business, our financial position and the results of our operations.
We outsource our hardware manufacturing business to contract manufacturers.
This strategy enables us to focus on our core competencies.
Design hardware and software systems for customers and provide solutions
Avoid investment capital-
Intensive electronic manufacturing infrastructure.
Outsourcing also provides us with the ability to increase delivery to meet demand growth without increasing fixed costs.
Our manufacturers are responsible for obtaining the components and supplies needed to make our products.
While components and supplies often come from a variety of sources, manufacturers often depend on a limited number of suppliers.
In the past, unexpected demand for communications products led to a global shortage of certain electronic parts and the distribution of these parts by suppliers, this adversely affects the manufacturer\'s ability to deliver the product and the cost of producing these parts.
Due to the general supply of our products by the manufacturer, we do not believe that the loss of any of our manufacturers will last for a long time
Although there may be significant adverse effects in the short term, but for our business
Adversely affect our business.
We usually try to keep enough inventory to meet the customer\'s demand for the product and meet the expected sales level.
If our portfolio changes in unexpected ways, or if the sales of a particular product are not achieved as expected, we may have excess inventory or inventory become obsolete.
In this case, the results of our operations may be negatively affected.
The use of government-regulated radio emissions is regulated by a variety of federal agencies in the United States, including the Federal Communications Commission (FCC) and the Occupational Safety and Health Administration (OSHA ).
National agencies have also enacted regulations on the use of laser and radio/induction emission standards.
Regulators in the US and other countries we may operate in the future may need to make changes to some of our products so that we continue to produce and sell our products in these areas.
As part of normal operation, our products intentionally transmit radio signals, including narrow band and spectrum signals.
We have obtained the certification of the products that need to be certified from the FCC.
Users of these products in the United States can use or operate our products without any permission from the FCC.
In order to market and sell our integrated wireless solutions in the EU, we have also used unlicensed radio spectrum and obtained the required European standards (EN)certifications.
In addition, some of our businesses use substances prescribed by various federal, state and local laws governing the health and safety of the environment and workers, including laws governing the discharge of pollutants to the ground, air and water, management and disposal of hazardous substances and wastes and cleaning of contaminated sites.
Some of our products are subject to various federal, state and local laws governing chemicals in electronic products.
The use of adverse regulations or adverse interpretation of existing regulations by courts or regulators may require us to bear significant compliance costs and make the development of affected markets impractical, or adversely affect our ability to produce or sell products.