Quarterly report pursuant to Section 13 or 15(d)

Accounting Policies, by Policy (Policies)

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Accounting Policies, by Policy (Policies)
3 Months Ended
Mar. 31, 2014
Accounting Policies [Abstract]  
Basis of Accounting, Policy [Policy Text Block]
b.           Basis of presentation:

The accompanying interim condensed consolidated financial statements have been prepared by Arotech Corporation in accordance with generally accepted accounting principles for interim financial information, with the instructions to Form 10-Q and with Article 10 of Regulation S-X, and include the accounts of Arotech Corporation and its subsidiaries. Certain information and footnote disclosures, normally included in complete financial statements prepared in accordance with generally accepted accounting principles, have been condensed or omitted. In the opinion of the Company, the unaudited financial statements reflect all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of its financial position at March 31, 2014, its operating results for the three-month periods ended March 31, 2014 and 2013, and its cash flows for the three-month periods ended March 31, 2014 and 2013.

The results of operations for the three months ended March 31, 2014 are not necessarily indicative of results that may be expected for any other interim period or for the full fiscal year ending December 31, 2014.

The balance sheet at December 31, 2013 has been derived from the audited financial statements at that date but does not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. These condensed consolidated financial statements should be read in conjunction with the audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013.
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]
c.           Accounting for stock-based compensation:

For the three months ended March 31, 2014 and 2013 the compensation expense recorded related to restricted stock units and restricted shares was $129,273 and $98,295, respectively. The remaining total compensation cost related to share awards not yet recognized in the income statement as of March 31, 2014 was $644,519. The weighted average period over which this compensation cost is expected to be recognized is approximately one and one-half years. Income tax expense was not impacted since the Company is in a net operating loss position. There were no new options issued in the first three months of 2014 and there are no outstanding issued options. The Company’s directors received their annual restricted stock grants, after quarter end, on April 1, 2014 in accordance with the terms of the directors’ stock compensation plan.
Reclassification, Policy [Policy Text Block]
d.           Reclassification:

Certain comparative data in these financial statements may have been reclassified to conform to the current year’s presentation.
Earnings Per Share, Policy [Policy Text Block]
e.           Anti-dilutive shares for EPS calculation:

All non-vested restricted stock and non-vested restricted stock units have been excluded from the calculation of the basic net income per common share because all such securities are anti-dilutive for the periods presented and the Company has excluded any restricted stock or restricted stock units that will never vest under the current program. The total weighted average number of shares related to the outstanding options and warrants excluded from the calculations of basic net income per share for the three-month periods ended March 31, 2014 and 2013 were 602,740 and 614,968, respectively.
Discontinued Operations, Policy [Policy Text Block]
f.           Discontinued operations:

In December 2011, the Company’s Board of Directors approved management’s plan to sell the Armor Division. On March 8, 2012, the Company signed a non-binding letter of intent to sell the division to an Israeli public company. The sale of the assets was completed in June 2012 at a cash purchase price of $50,000. Unless otherwise indicated, discontinued operations are not included in the Company’s reported results.

Unless otherwise noted, amounts and disclosures throughout the Notes to Consolidated Financial Statements relate to the Company’s continuing operations. The revenues and expenses of the discontinued operation are shown below.

REVENUE AND EXPENSES – DISCONTINUED
 
Three months ended March 31,
 
   
(unaudited)
 
   
2014
   
2013
 
Revenues
  $     $ 1,954  
                 
Cost of revenues, exclusive of amortization of intangibles
          (2,303 )
Research and development expenses
           
Selling and marketing expenses 
           
General and administrative expenses 
          81,939  
Total operating costs and expenses
          79,636  
                 
Operating loss
          (77,682 )
                 
Other income
          27,986  
Financial expense, net
          (24,047 )
Total other income
          3,939  
Loss before income tax benefit
          (73,743 )
Income tax expense
          1,000  
Net loss
  $     $ (74,743 )