SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 6-K
 
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
 
For the month of March, 2010

ON TRACK INNOVATIONS LTD.
(Name of Registrant)

Z.H.R. Industrial Zone, P.O. Box 32, Rosh-Pina, Israel, 12000
(Address of Principal Executive Office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
 
Form 20-F   x     Form 40-F   o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
 
Yes o     No x
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
 
Yes o     No x
 
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
 
Yes o     No x
 
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):
 
 
ON TRACK INNOVATIONS LTD.
6-K ITEM
This report on Form 6-K is incorporated by reference into On Track Innovations Ltd.’s Registration Statement on Form F-3 (Registration No. 333-111770), initially filed with the Securities and Exchange Commission (the “Commission”) on January 8, 2004, its Registration Statement on Form F-3 (Registration No. 333-115953), filed with the Commission on May 27, 2004, its Registration Statement on Form F-3 (Registration No. 333-121316), filed with the Commission on December 16, 2004, its Registration Statement on Form F-3 (Registration No. 333-127615), initially filed with the Commission on August 17, 2005, its Registration Statement on Form S-8 (Registration No. 333-128106), filed with the Commission on September 6, 2005, its Registration Statement on Form F-3 (Registration No. 333-130324), filed with the Commission on December 14, 2005, its Registration Statement on Form F-3 (Registration No. 333-135742), filed with the Commission on July 13, 2006, its Registration Statement on Form S-8 (Registration No. 333-140786) filed with the Commission on February 20, 2007, its Registration Statement on Form F-3 (Registration No. 333-142320), filed with the Commission on April 24, 2007, its Registration Statement on Form S-8 (Registration No. 333-149034) filed with the Commission on February 4, 2008, its Registration Statement on Form S-8 (Registration No. 333-149575), filed with the Commission on March 6, 2008 and its Registration Statement on Form F-3 (Registration No. 333-153667), filed with the Commission on September 25, 2008.
 
 
SIGNATURES
 
           Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 

 
ON TRACK INNOVATIONS LTD.
         (Registrant)
 
 
By: /s/ Oded Bashan
         Oded Bashan
         Chief Executive Officer and Chairman
 
Date: March 2, 2010
 
2

 
Press Release

OTI Reports FY 2009 Financial Results
●     Revenues of $31.4 Million ($38.2 Million Including Discontinued Operations)
●     Gross Margin Increased to 47%
●     Net Cash Provided by Operating Activities of $5.1 Million
●     $32 Million in cash, cash equivalents and short terms investments at year end

Iselin, NJ – March 1, 2010 – On Track Innovations Ltd.   (OTI) (NASDAQ: OTIV), a global leader in contactless microprocessor-based smart card solutions for homeland security, payments, petroleum payments and other applications, today announced its consolidated financial results for the year ended December 31, 2009. Following are various financial figures that compare fiscal year 2009 to 2008.

 
·
Net cash provided by continuing operating activities of $5.1 million.

 
·
Strong balance sheet with cash, cash equivalents and short-term investments of $32 million at year end.
 
 
·
Total revenues of $31.4 million ($38.2 million including revenues from discontinued operations), a 10% decrease from last year.
 
 
·
Gross margin increased to 47% vs. 43% last year.

 
·
Non-GAAP operating expenses of $24.1 million, a 6% decrease compared to $25.7 million last year. GAAP operating expenses of $28.7 million compared to $58.9 million last year (2008 GAAP operating expenses included a $24.2 million one-time charge related to impairment of goodwill).

 
·
Non-GAAP operating loss of $9.4 million, a 9% decrease compared to $10.4 million last year. GAAP operating loss of $14.1 million, compared to $43.7 million last year (2008 GAAP operating loss included a $24.2 million one-time charge related to impairment of goodwill).

 
·
Non-GAAP net loss of $10.7 million, an 11% decrease compared to $11.9 million last year. GAAP net loss of $23.4 million, compared to $49.9 million last year (2008 GAAP net loss included a $24.2 million one-time charge related to impairment of goodwill).

Oded Bashan, Chairman and CEO of OTI, said: “We are opening 2010 in a strong position, with solid and established pipeline of large projects and a stronger balance sheet, after finishing 2009 with positive cash flow from operations.  We are on target to reach operating breakeven on a non-GAAP basis for the year, with expected sales of $48 million, which represents a 50% increase over 2009 sales.”

Mr. Bashan continued: “2009 results demonstrate the success of OTI’s strategy to focus on improving margins and reducing operating expenses, specifically in R&D and G&A."

Mr. Bashan concluded: “The sale of the assets of MCT including the machinery and inlay production IP of OTI in the fourth quarter of 2009 for EUR 8.5 million, is a result of our continued efforts to adapt organization structure to corporate strategy, reduce our operating expenses and offer end-to-end solutions which ultimately yield high margin product sales and recurring revenues. The sale reduces OTI’s operating expenses and improves our cash flow position.”

3

Discontinued Operations
During the fourth quarter of 2009, the Company signed an agreement for the sale of the assets of OTI’s subsidiary Millennium Card's Technology Ltd ("MCT") including the machinery and inlay production IP of OTI to SMARTRAC NV (as announced in November 2009). Results for the discontinued operations have been separated and are presented separately for both 2008 and 2009 statements.
 
Use of Non-GAAP Financial Information
In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, OTI uses non-GAAP measures of gross profit, net income and earnings per share, which are adjustments from results based on GAAP to exclude non-cash equity-based compensation charges in accordance with the requirements of Accounting Standards Codification (“ASC”) Topic 718 (originally issued as SFAS No. 123(R)) and ASC Subtopic 505-50 - Equity-Based Payments to Non-Employees (formerly EITF 96-18), amortization and impairment of intangible assets and goodwill and results from discontinued operations. OTI management believes the non-GAAP financial information provided in this release provides meaningful supplemental information regarding our performance and enhances the understanding of the Company’s on-going economic performance. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. Management uses both GAAP and non-GAAP information in evaluating and operating the business and as such deemed it important to provide all this information to investors. Reconciliations between GAAP measures and non-GAAP are provided later in this press release.

Conference call and Webcast Information
The Company has scheduled a conference call and simultaneous Web cast for March 1, 2010, at 9:00 AM ET to discuss operating results and future outlook. To participate, call:
1-888-668-9141 (U.S. toll free), 1-800-227-297 (Israel toll free). To listen to the Web cast, use the following link: http://www.otiglobal.com/Investors_Introduction
For those unable to participate, the teleconference will be available for replay until midnight March 7 th , by calling U.S.: 1-888-295-2634 on the web at: http://www.otiglobal.com/Investors_Introduction

About OTI
Established in 1990, OTI (NASDAQ GM: OTIV) designs, develops and markets secure contactless microprocessor-based smart card technology to address the needs of a wide variety of markets. Applications developed by OTI include product solutions for petroleum payment systems, homeland security solutions, electronic passports and IDs, payments, mass transit ticketing, parking and loyalty programs. OTI has a global network of regional offices to market and support its products. The company was awarded the Frost & Sullivan 2005 and 2006 Company of the Year Award in the field of smart cards.

For more information on OTI, visit www.otiglobal.com, the content of which is not part of this press release.

OTI Contact:
Investor Relations:
Galit Mendelson
Miri Segal
Vice President of Corporate Relations
MS-IR LLC
201 944 5200 ext. 111
917-607-8654
galit@otiglobal.com
msegal@ms-ir.com

# # #
(TABLES TO FOLLOW)

4

Safe Harbor for Forward-Looking Statements:
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws.  Whenever we use words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate” or similar expressions, we are making forward-looking statements.  Because such statements deal with future events and are based on OTI’s current expectations, they are subject to various risks and uncertainties and actual results, performance or achievements of OTI could differ materially from those described in or implied by the statements in this press release.  Forward-looking statements include statements regarding our goals, beliefs, future growth strategies, objectives, plans or current expectations. For example, when we say that we are opening 2010 in a strong position, with solid and established pipeline of large projects and a stronger balance sheet, after finishing 2009 with positive cash flow from operations, or when we say that we are on target to reach operating breakeven on a non-GAAP basis for the year, with expected sales of $48 million, which represents a 50% increase over 2009 sales, or when we say that 2009 results demonstrate the success of our strategy to focus on improving margins and reducing operating expenses, specifically in R&D and G&A, or when we say that the sale of the assets of MCT including the machinery and inlay production IP of OTI in the fourth quarter of 2009 for EUR 8.5 million is a result of our continued efforts to adapt organization structure to corporate strategy, reduce our operating expenses and offer end-to-end solutions which ultimately yield high margin product sales and recurring revenues, or when we say that the sale reduces our operating expenses and improves our cash flow position, we are using forward looking statements. Forward-looking statements could be impacted by the effects of the protracted evaluation and validation periods in the U.S. and other markets for contactless payment cards ,market acceptance of new and existing products and our ability to execute production on orders, as well as the other risks and uncertainties, including those discussed in the “Risk Factors” section and elsewhere in our Annual Report on Form 20-F for the year ended December 31, 2008 and in subsequent filings with the Securities and Exchange Commission.   Although we believe that the expectations reflected in such forward-looking statements are based on reasonable assumptions, we can give no assurance that our expectations will be achieved.  Except as otherwise required by law, OTI disclaims any intention or obligation to update or revise any forward-looking statements, which speak only as of the date hereof, whether as a result of new information, future events or circumstances or otherwise.

5

ON TRACK INNOVATIONS LTD.
CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands, except share and per share data)

   
December 31
   
December 31
 
   
2008
   
2009
 
   
(Unaudited)
 
Assets
           
             
Current assets
           
Cash and cash equivalents
  $ 27,196     $ 26,884  
Short-term investments
    904       5,086  
Trade receivables (net of allowance for doubtful
               
 accounts of $3,315 and $2,777 as of December 31, 2008
               
 and December 31, 2009, respectively)
    4,567       6,595  
Other receivables and prepaid expenses
    2,994       2,478  
Inventories
    12,343       6,265  
                 
Total current assets
    48,004       47,308  
                 
Severance pay deposits fund
    1,189       1,112  
                 
Investment in an affiliated company
    -       -  
                 
Property, plant and equipment, net
    18,613       14,366  
                 
Intangible assets, net
    2,503       1,532  
                 
Assets from discontinued operations – held for sale
    -       12,358  
                 
Total Assets
  $ 70,309     $ 76,676  

6
 
ON TRACK INNOVATIONS LTD.
CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands, except share and per share data)

   
December 31
   
December 31
 
   
2008
   
2009
 
   
(Unaudited)
 
Liabilities and Shareholders' Equity
           
             
Current Liabilities
           
Short-term bank credit and current maturities
           
 of long-term bank loans
  $ 4,984     $ 6,255  
Trade payables
    8,071       9,649  
Other current liabilities
    3,517       16,174  
Total current liabilities
    16,572       32,078  
                 
Long-Term Liabilities
               
Long-term loans, net of current maturities
    1,762       2,642  
Accrued severance pay
    3,672       3,373  
Deferred tax liability
    202       120  
Total long-term liabilities
    5,636       6,135  
                 
Total Liabilities
    22,208       38,213  
                 
Liabilities related to discontinued operations
    -       8,495  
                 
Commitments and Contingencies
               
                 
Equity
               
Shareholders' Equity
               
Ordinary shares of NIS 0.1 par value: Authorized –
               
 50,000,000 shares as of December 31, 2008 and
               
 December 31, 2009; issued 21,534,788 and 23,946,316
               
 shares as of December 31, 2008 and December 31, 2009,
               
  respectively; outstanding 21,495,409 and 23,946,316 shares
               
  as of December 31, 2008 and December 31, 2009, respectively
    508       571  
Additional paid-in capital
    182,944       187,473  
Accumulated other comprehensive income (loss)
    (325 )      570  
Accumulated deficit
    (135,441 )     (158,623 )
Shareholder’s equity
    47,686       29,991  
Noncontrolling interest
    415       (23 ) 
                 
Total Equity
    48,101       29,968  
                 
Total Liabilities and Shareholders’ Equity
  $ 70,309     $ 76,676  

7
 
ON TRACK INNOVATIONS LTD.
NON GAAP CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except share and per share data)
 
   
Year ended December 31
   
Three months ended December 31
 
   
2008
   
2009
   
2008
   
2009
 
   
(Unaudited)
 
Revenues
                       
Sales
  $ 32,387     $ 28,488     $ 7,084     $ 7,527  
Licensing and transaction fees
    2,635       2,949       751       1,075  
                                 
Total revenues
    35,022       31,437       7,835       8,602  
                                 
Cost of revenues
                               
Cost of sales
    19,729       16,738       4,403       5,270  
                                 
Total cost of revenues
    19,729       16,738       4,403       5,270  
                                 
Gross profit
    15,293       14,699       3,432       3,332  
                                 
Operating expenses
                               
Research and development
    7,399       6,034       1,587       1,669  
Selling and marketing
    9,112       9,684       3,030       2,210  
General and administrative
    9,176       8,392       2,657       2,867  
                                 
Total operating expenses
    25,687       24,110       7,274       6,746  
                                 
Operating loss
    (10,394 )     (9,411 )     (3,842 )     (3,414 )
Financial income (expense), net
    (474 )      (1,153 )      114       (413 )
                                 
Loss before taxes on income
    (10,868 )     (10,564 )     (3,728 )     (3,827 )
 
                               
Taxes on income
    205       (89 )      28       (54 ) 
Equity in loss of affiliate
    (1,270 )     -       (928 )     -  
                                 
Net loss
    (11,933 )     (10,653 )     (4,628 )     (3,881 )
                                 
Net loss (income) attributable to noncontrolling interest
    (57 )     189       (57 )     56  
Net loss attributable to shareholders
    (11,990 )     (10,464 )     (4,685 )     (3,825 )
                                 
Basic and diluted net loss attributable to shareholders per ordinary share
  $ (0.59 )   $ (0.46 )   $ (0.22 )   $ (0.16 )
Weighted average number of ordinary shares used in computing basic and diluted net loss per ordinary share
     20,413,578         22,635,479         21,378,887         23,548,712  
 
Adjustments from results based on GAAP to exclude:
 
(a)
The effect of stock-based compensation in accordance with SFAS 123(R) and EITF 96-18.
 
(b)
The effect of amortization and impairment of intangible assets and goodwill for 2008 and amortization of intangible assets for 2009.
 
(c)
The effect of discontinued operation.

8

ON TRACK INNOVATIONS LTD.
GAAP CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except share and per share data)
 
   
Year ended December 31
   
Three months ended December 31
 
   
2008
   
2009
   
2008
   
2009
 
   
(Unaudited)
 
Revenues
                       
Sales
  $ 32,387     $ 28,488     $ 7,084     $ 7,527  
Licensing and transaction fees
    2,635       2,949       751       1,075  
                                 
Total revenues
    35,022       31,437       7,835       8,602  
                                 
Cost of revenues
                               
Cost of sales
    19,789       16,782       4,418       5,275  
                                 
Total cost of revenues
    19,789       16,782       4,418       5,275  
                                 
Gross profit
    15,233       14,655       3,417       3,327  
                                 
Operating expenses
                               
Research and development
    10,300       8,127       2,120       2,192  
Selling and marketing
    10,370       10,371       3,224       2,351  
General and administrative
    11,210       9,230       3,034       2,974  
Amortization and impairment of intangible assets
    2,794       978       1,769       212  
Impairment of goodwill
    24,217       -       24,217       -  
                                 
Total operating expenses
    58,891       28,706       34,364       7,729  
                                 
Operating loss
    (43,658 )     (14,051 )     (30,947 )     (4,402 )
Financial income (expense), net
    (474 )      (1,153 )      114       (413 )
                                 
Loss before taxes on income
    (44,132 )     (15,204 )     (30,833 )     (4,815 )
 
                               
Taxes on income
    675       (89 )      498       (54 ) 
Equity in loss of affiliate
    (1,270 )     -       (928 )     -  
                                 
Net loss from continuing operation
    (44,727 )     (15,293 )     (31,263 )     (4,869 )
Net loss from discontinued operation
    (5,211 )     (8,078 )     (1,320 )     (4,407 )
                                 
Net loss
    (49,938 )     (23,371 )     (32,583 )     (9,276 )
                                 
Net loss (income) attributable to noncontrolling interest
    (57 )     189       (57 )     56  
Net loss attributable to shareholders
    (49,995 )     (23,182 )     (32,640 )     (9,220 )
                                 
Basic and diluted net loss attributable to shareholders per ordinary share
                               
From continuing operation
  $ (2.19 )   $ (0.67 )   $ (1.47 )   $ (0.20 )
From discontinued operation
  $ (0.26 )   $ (0.35 )   $ (0.06 )   $ (0.19 )
Weighted average number of ordinary shares used in computing basic and diluted net loss per ordinary share
     20,413,578         22,635,479         21,378,887         23,548,712  

9
 
ON TRACK INNOVATIONS LTD.
RECONCILIATION BETWEEN GAAP TO NON-GAAP
UNAUDITED STATEMENT OF OPERATIONS
(In thousands, except share and per share data)

   
 
 
GAAP
   
Year ended
December 31, 2009
Adjustments
   
 
 
Non-GAAP
 
                   
Revenues
                 
Sales
  $ 28,488       -     $ 28,488  
Licensing and transaction fees
    2,949       -       2,949  
Total revenues
    31,437               31,437  
                         
Cost of Revenues
                       
Cost of sales
    16,782       (44 ) (a)     16,738  
Total cost of revenues
    16,782       (44 )     16,738  
                         
Gross profit
    14,655       44       14,699  
                         
Operating Expenses
                       
Research and development
    8,127       (2,093 ) (a)     6,034  
Selling and marketing
    10,371       (687 ) (a)     9,684  
General and administrative
    9,230       (838 ) (a)     8,392  
Amortization of intangible assets
    978       (978 ) (b)     -  
Total operating expenses
    28,706       (4,596 )     24,110  
                         
Operating loss
    (14,051 )     4,640       (9,411 )
Financial expenses, net
    (1,153 )     -       (1,153 ) 
Loss before taxes on income
    (15,204 )     4,640       (10,564 )
Taxes on income
    (89 )     -       (89 )
                         
Net loss from continuing operation
    (15,293 )     4,640       (10,653 )
Net loss from discontinued operation
    (8,078 )     8,078 (c)     -  
                         
Net loss
  $ (23,371 )   $ 12,718     $ (10,653 )
                         
Net loss attributable to noncontrolling interest
    189       -       189  
Net loss attributable to shareholders
  $ (23,182 )   $ 12,718     $ (10,464 )
                         
Basic and diluted net loss attributable to shareholders per ordinary share
                       
From continuing operation
  $ (0.67 )   $ 0.21     $ (0.46 )
From discontinued operation
  $ (0.35 )   $ 0.35       -  
Weighted average number of ordinary shares used in computing basic and diluted net loss  per ordinary share
      22,635,479                 22,635,479  

 
(a)
The effect of stock-based compensation in accordance with SFAS 123(R) and EITF 96-18.
 
(b)
The effect of amortization of intangible assets.
 
(c)
The effect of discontinued operation.

10
 
ON TRACK INNOVATIONS LTD.
RECONCILIATION BETWEEN GAAP TO NON-GAAP
UNAUDITED STATEMENT OF OPERATIONS
(In thousands, except share and per share data)
   
GAAP
   
Three months ended December 31, 2009
Adjustments
   
 
 
Non-GAAP
 
                   
Revenues
                 
Sales
  $ 7,527       -     $ 7,527  
Licensing and transaction fees
    1,075       -       1,075  
Total revenues
    8,602               8,602  
                         
Cost of Revenues
                       
Cost of sales
    5,275       (5 ) (a)     5,270  
Total cost of revenues
    5,275       (5 )     5,270  
                         
Gross profit
    3,327       5       3,332  
                         
Operating Expenses
                       
Research and development
    2,192       (523 ) (a)     1,669  
Selling and marketing
    2,351       (141 ) (a)     2,210  
General and administrative
    2,974       (107 ) (a)     2,867  
Amortization of intangible assets
    212       (212 ) (b)     -  
Total operating expenses
    7,729       (983 )     6,746  
                         
Operating loss
    (4,402 )     988       (3,414 )
Financial expenses, net
    (413 )     -       (413 ) 
Loss before taxes on income
    (4,815 )     988       (3,827 )
Taxes on income
    (54 )     -       (54 )
                         
Net loss from continuing operation
    (4,869 )     988       (3,881 )
Net loss from discontinued operation
    (4,407 )     4,407 (c)     -  
                         
Net loss
  $ (9,276 )   $ 5,395     $ (3,881 )
                         
Net loss attributable to noncontrolling interest
    56       -       56  
Net loss attributable to shareholders
  $ (9,220 )   $ 5,395     $ (3,825 )
                         
Basic and diluted net loss attributable to shareholders per ordinary share
                       
From continuing operation
  $ (0.20 )   $ 0.04     $ (0.16 )
From discontinued operation
  $ (0.19 )   $ 0.19       -  
Weighted average number of ordinary shares used in computing basic and diluted net loss  per ordinary share
      23,548,712                 23,548,712  
 
 
(a)
The effect of stock-based compensation in accordance with SFAS 123(R) and EITF 96-18.
 
(b)
The effect of amortization of intangible assets.
 
(c)
The effect of discontinued operation.

11
 
ON TRACK INNOVATIONS LTD
RECONCILIATION BETWEEN GAAP TO NON-GAAP
UNAUDITED STATEMENT OF OPERATIONS
(In thousands, except share and per share data)

   
 
 
GAAP
   
Year ended
December 31, 2008
Adjustments
   
 
 
Non-GAAP
 
                   
Revenues
                 
Sales
  $ 32,387       -     $ 32,387  
Licensing and transaction fees
    2,635       -       2,635  
Total revenues
    35,022               35,022  
                         
Cost of Revenues
                       
Cost of sales
    19,789       (60 ) (a)     19,729  
Total cost of revenues
    19,789       (60 )     19,729  
                         
Gross profit
    15,233       60       15,293  
                         
Operating Expenses
                       
Research and development
    10,300       (2,901 ) (a)     7,399  
Selling and marketing
    10,370       (1,258 ) (a)     9,112  
General and administrative
    11,210       (2,034 ) (a)     9,176  
Amortization and impairment of intangible assets
     2,794       (2,794 ) (b)     -  
Impairment of goodwill
    24,217       (24,217 ) (b)     -  
Total operating expenses
    58,891       (33,204 )     25,687  
                         
Operating loss
    (43,658 )     33,264       (10,394 )
Financial expenses, net
    (474 )     -       (474 ) 
Loss before taxes on income
    (44,132 )     33,264       (10,868 )
Taxes on income
    675       (470 ) (b)     205  
Equity in loss of affiliate
    (1,270 )     -       (1,270 )
                         
Net loss from continuing operation
    (44,727 )     32,794       (11,933 )
Net loss from discontinued operation
    (5,211 )     5,211 (c)     -  
                         
Net loss
  $ (49,938 )   $ 38,005     $ (11,933 )
                         
Net income attributable to noncontrolling interest
    (57 )      -       (57 ) 
Net loss attributable to shareholders
  $ (49,995 )   $ 38,005     $ (11,990 )
                         
Basic and diluted net loss attributable to shareholders per ordinary share
                       
From continuing operation
  $ (2.19 )   $ 1.60     $ (0.59 )
From discontinued operation
  $ (0.26 )   $ 0.26       -  
Weighted average number of ordinary shares used in computing basic and diluted net loss  per ordinary share
      20,413,578                 20,413,578  
 
 
(a)
The effect of stock-based compensation in accordance with SFAS 123(R) and EITF 96-18.
 
(b)
The effect of amortization and impairment of intangible assets and goodwill.
 
(c)
The effect of discontinued operation.
 
12
ON TRACK INNOVATIONS LTD
RECONCILIATION BETWEEN GAAP TO NON-GAAP
 UNAUDITED STATEMENT OF OPERATIONS
(In thousands, except share and per share data)

   
 
 
GAAP
   
Three months ended December 31, 2008
Adjustments
   
 
 
Non-GAAP
 
                   
Revenues
                 
Sales
  $ 7,084       -     $ 7,084  
Licensing and transaction fees
    751       -       751  
Total revenues
    7,835               7,835  
                         
Cost of Revenues
                       
Cost of sales
    4,418       (15 ) (a)     4,403  
Total cost of revenues
    4,418       (15 )     4,403  
                         
Gross profit
    3,417       15       3,432  
                         
Operating Expenses
                       
Research and development
    2,120       (533 ) (a)     1,587  
Selling and marketing
    3,224       (194 ) (a)     3,030  
General and administrative
    3,034       (377 ) (a)     2,657  
Amortization and impairment of intangible assets
     1,769       (1,769 ) (b)     -  
Impairment of goodwill
    24,217       (24,217 ) (b)     -  
Total operating expenses
    34,364       (27,090 )     7,274  
                         
Operating loss
    (30,947 )     27,105       (3,842 )
Financial income, net
    114       -       114  
Loss before taxes on income
    (30,833 )     27,105       (3, 728 )
Taxes on income
    498       (470 ) (b)     28  
Equity in loss of affiliate
    (928 )     -       (928 )
                         
Net loss from continuing operation
    (31,263 )     26,635       (4,628 )
Net loss from discontinued operation
    (1,320 )     1,320  (c)     -  
                         
Net loss
  $ (32,583 )   $ 27,955     $ (4,628 )
                         
Net income attributable to noncontrolling interest
    (57 )      -       (57 ) 
Net loss attributable to shareholders
  $ (32,640 )   $ 27,955     $ (4,685 )
                         
Basic and diluted net loss attributable to shareholders per ordinary share
                       
From continuing operation
  $ (1.47 )   $ 1.25     $ (0.22 )
From discontinued operation
  $ (0.06 )   $ 0.06       -  
Weighted average number of ordinary shares used in computing basic and diluted net loss  per ordinary share
       21,378,887                  21,378,887  

 
(a)
The effect of stock-based compensation in accordance with SFAS 123(R) and EITF 96-18.
 
(b)
The effect of amortization and impairment of intangible assets and goodwill.
 
(c)
The effect of discontinued operation.
13
 
ON TRACK INNOVATIONS LTD.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(In thousands, except share and per share data)

   
Year ended December 31
 
   
2008
   
2009
 
   
(Unaudited)
 
Cash flows from operating activities
           
Net loss
  $ (44,727 )   $ (15,293 )
Adjustments required to reconcile net loss to
               
 net cash used in operating activities:
               
Stock-based compensation related to options and shares issued
               
 to employees and others
    6,253       3,662  
Loss (gain) on sale of property and equipment
    25       (3 ) 
Amortization and impairment of intangible assets and goodwill
    27,011       978  
Depreciation
    3,044       2,632  
Equity in net losses of an affiliated company
    1,270       -  
                 
Accrued severance pay, net
    78       (222 ) 
Accrued interest and linkage differences on long-term loans
    (27 )     36  
Decrease in deferred tax liability
    (711 )     (82 )
Decrease (increase) in trade receivables
    2,702       (1,326 )
Increase (decrease) in allowance for doubtful account
    548       (538 )
Decrease in other receivables and prepaid expenses
    567       663  
Decrease in inventories
    869       429  
Increase (decrease) in trade payables
    (1,859 )      1,334  
Increase (decrease) in other current liabilities
    (2,008 )     12,788  
Net cash provided by (used in) continuing operating activities
    (6,965 )     5,058  
                 
Cash flows from investing activities
               
                 
Acquisition of consolidated subsidiary, net of cash acquired
    (565 )      -  
Purchase of property and equipment
    (1,518 )     (4,124 )
Purchase of available-for-sale securities
    (29,068 )     (5,623 )
Proceeds from maturity of available-for-sale securities
    34,551       1,418  
Other, net
    30       22  
Net cash provided by (used in) continuing investing activities
    3,430       (8,307 )
                 
Cash flows from financing activities
               
Increase (decrease) in short-term bank credit, net
    (358 )     911  
Proceeds from long-term bank loans
    -       1,636  
Repayment of long-term bank loans
    (508 )     (543 )
Proceeds from receipt on account of shares and exercise of options and
               
 warrants, net
    1,464       521  
Net cash provided by continuing financing activities
    598       2,525  
                 
Net cash used in discontinued operating activities
    (5,211 )     (6,763 )
Net cash provided by discontinued investing activities
    -       7,060  
Total net cash provided by (used in) discontinued activities
    (5,211 )     297  
                 
Effect of exchange rate changes on cash
    (126 )      115  
                 
decrease in cash and cash equivalents
    (8,274 )      (312 ) 
Cash and cash equivalents at the beginning of the year
    35,470       27,196  
                 
Cash and cash equivalents at the end of the year
  $ 27,196     $ 26,884  

 
14

On Track Innovations (NASDAQ:OTIV)
Historical Stock Chart
From Jul 2024 to Aug 2024 Click Here for more On Track Innovations Charts.
On Track Innovations (NASDAQ:OTIV)
Historical Stock Chart
From Aug 2023 to Aug 2024 Click Here for more On Track Innovations Charts.