U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended: September 30, 2003
------------------
or
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
----------------- ------------------
Commission File Number: 1-15087
I.D. SYSTEMS, INC.
------------------
(Exact name of small business issuer as specified in its charter)
Delaware 22-3270799
(State or other jurisdiction or (I.R.S. Employer Identification No)
incorporation or organization)
One University Plaza, Hackensack, New Jersey 07601
--------------------------------------------------
(Address of principal executive offices) (Zip Code)
(201) 996-9000
--------------
(Issuer's telephone number)
(Former name, former address and former fiscal year, if changed since last
report)
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such
shorter period) that the issuer was required to file such reports, and (2) has
been subject to such filing requirements for the past 90 days.
Yes X No
----- ---
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDING DURING THE
PRECEDING FIVE YEARS
Check whether the issuer filed all documents and reports required to be
filed by Section 12, 13, or 15(d) of the Exchange Act after the distribution of
securities under a plan confirmed by a court.
Yes No
----- ---
APPLICABLE ONLY TO CORPORATE ISSUERS:
The number of shares outstanding of the Issuer's Common Stock, $0.01 par value,
as of the close of business on November 10, 2003 was 7,083,000.
A
INDEX
I.D. Systems, Inc.
PART I - FINANCIAL INFORMATION
Item 1. Condensed Financial Statements. Page
Condensed Balance Sheets as of December 31, 2002
and September 30, 2003 (unaudited) 1
Condensed Statements of Operations (unaudited)
for the three months and nine months ended
September 30, 2002 and 2003 2
Condensed Statements of Cash Flows (unaudited)
for the nine months ended September 30, 2002 and 2003 3
Notes to Condensed Financial Statements 4
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 5
Item 3. Controls and Procedures 9
Part II - Other Information
Item 6. Exhibits and Reports on Form 8-K 9
Signatures 10
B
PART I - FINANCIAL INFORMATION
Item 1. Condensed Financial Statements
I.D. Systems, Inc.
Condensed Balance Sheets
December 31, 2002 September 30, 2003
(Unaudited)
------------------ ------------------
ASSETS
Cash and cash equivalents $ 3,758,000 $ 2,647,000
Investments 3,031,000 3,276,000
Accounts receivable, net 1,114,000 1,776,000
Unbilled receivables -- 105,000
Inventory 1,471,000 1,154,000
Investment in sales type leases 159,000 34,000
Interest receivable 73,000 107,000
Officer loan 10,000 10,000
Prepaid expenses and other current assets 147,000 180,000
---------------- ---------------
Total current assets 9,763,000 9,289,000
Investments 968,000 2,144,000
Fixed assets, net 679,000 812,000
Investment in sales type leases 522,000 67,000
Installment receivable - non-current portion 867,000 736,000
Officer loan 41,000 34,000
Deferred contract costs -- 187,000
Other assets 107,000 97,000
---------------- ---------------
$ 12,947,000 $ 13,366,000
================ ===============
LIABILITIES
Accounts payable and accrued expenses $ 1,205,000 $ 988,000
Long term debt - current portion -- 186,000
Line of credit 137,000 137,000
Deferred revenue 26,000 45,000
Other current liabilities 100,000 50,000
---------------- ---------------
Total current liabilities 1,468,000 1,406,000
Long term debt -- 696,000
Deferred revenue -- 177,000
Deferred rent 66,000 83,000
---------------- ---------------
1,534,000 2,362,000
---------------- ---------------
STOCKHOLDERS' EQUITY
Preferred stock; authorized 5,000,000 shares,
$.01 par value; none issued
Common stock; authorized 15,000,000 shares, $.01
par value; issued and outstanding 6,799,000
shares and 7,041,000 shares 68,000 70,000
Additional paid-in capital 22,042,000 22,563,000
Treasury stock; 40,000 shares at cost (113,000) (113,000)
Accumulated deficit (10,584,000) (11,516,000)
---------------- ---------------
11,413,000 11,004,000
---------------- ---------------
$ 12,947,000 $ 13,366,000
================ ===============
See accompanying notes.
1
I.D. Systems, Inc.
Condensed Statements of Operations
(Unaudited)
Three months ended Nine months ended
September 30, September 30,
2002 2003 2002 2003
------------ ------------ ------------ ------------
Revenues $1,532,000 $1,743,000 $3,541,000 $5,477,000
Cost of Revenues 617,000 812,000 1,585,000 2,643,000
------------ ------------ ------------ ------------
Gross Profit 915,000 931,000 1,956,000 2,834,000
Selling, general and
administrative expenses 1,104,000 1,087,000 2,801,000 3,275,000
Research and development expenses 261,000 243,000 812,000 694,000
------------ ------------ ------------ ------------
Loss from operations (450,000) (399,000) (1,657,000) (1,135,000)
Interest income 123,000 79,000 269,000 244,000
Interest expense (2,000) (16,000) (3,000) (41,000)
------------ ------------ ------------ ------------
Net loss $ (329,000) $(336,000) $(1,391,000) $ (932,000)
============ ============ ============ ============
Net loss per share - basic and
diluted $ (0.05) $ (0.05) $ (0.21) $ (0.14)
============ ============ ============ ============
Weighted average common shares
outstanding - basic and diluted
loss per share 6,799,000 6,898,000 6,682,000 6,845,000
============ ============ ============ ============
See accompanying notes.
2
I.D. Systems, Inc.
Condensed Statements of Cash Flows
(Unaudited)
Nine months ended
September 30,
2002 2003
------------ ------------
Cash flows from operating activities:
Net loss $ (1,391,000) $ (932,000)
Adjustments to reconcile net loss to
cash used in operating activities:
Depreciation and amortization 148,000 118,000
Deferred rent expense 18,000 17,000
Deferred revenue 117,000 196,000
Bad debt expense -- 15,000
Deferred contract costs -- (187,000)
Changes in:
Accounts receivable (1,177,000) (677,000)
Unbilled receivables -- (105,000)
Inventory (323,000) 317,000
Prepaid expenses and other assets (138,000) (23,000)
Investment in sales type leases (705,000) 580,000
Installment receivable -- 131,000
Other liabilities 200,000 (50,000)
Accounts payable and accrued expenses 31,000 (217,000)
------------ ------------
Net cash used in operating
activities (3,220,000) (817,000)
------------ ------------
Cash flows from investing activities:
Purchase of fixed assets (316,000) (251,000)
Purchase of investments (4,827,000) (3,723,000)
Maturities of investments 3,364,000 2,174,000
Increase in interest receivable (130,000) (34,000)
Amortization of (discount) premium on (130,000) 128,000
investments
Collection of officer loan -- 7,000
------------ ------------
Net cash used in investing
activities (1,875,000) (1,699,000)
------------ ------------
Cash flows from financing activities:
Payment of lease obligations (9,000) --
Proceeds from exercise of stock options 169,000 523,000
Proceeds from term loan, net of repayment -- 882,000
Proceeds from line of credit 137,000 --
Proceeds from private placement 6,143,000 --
------------ ------------
Net cash provided by financing
activities 6,440,000 1,405,000
------------ ------------
Net increase in cash and cash
equivalents 1,345,000 1,111,000
Cash and cash equivalents - beginning of
period 2,426,000 3,758,000
------------ ------------
Cash and cash equivalents - end of $ 3,771,000 $ 2,647,000
period ============ ============
See accompanying notes.
3
I.D. Systems, Inc.
Notes to Condensed Financial Statements
September 30, 2002
NOTE A - Basis of Reporting
The accompanying unaudited condensed financial statements have been prepared in
accordance with accounting principles generally accepted in the United States of
America for interim financial information and with the instructions to Form
10-QSB. Accordingly, they do not include all of the information and footnotes
required by accounting principles generally accepted in the United States of
America for complete financial statements. In the opinion of management, such
statements include all adjustments (consisting only of normal recurring items)
which are considered necessary for a fair presentation of the financial position
of I.D. Systems, Inc. (the "Company") as of September 30, 2003, the results of
its operations for the three-month and nine-month periods ended September 30,
2002 and 2003 and cash flows for the nine-month periods ended September 30, 2002
and 2003. The results of operations for the three - month and nine - month
periods ended September 30, 2003 are not necessarily indicative of the operating
results for the full year. It is suggested that these financial statements be
read in conjunction with the financial statements and related disclosures for
the year ended December 31, 2002 included in the Company's Annual Report to
Stockholders.
NOTE B - Net Income (Loss) Per Share of Common Stock
Basic income (loss) per share is based on the weighted average number of common
shares outstanding during each period. Diluted income (loss) per share reflects
the potential dilution assuming common shares were issued upon the exercise of
outstanding options and warrants and the proceeds thereof were used to purchase
outstanding common shares. For the three-month and nine-month periods ended
September 30, 2002 and 2003, the basic and diluted weighted average shares
outstanding are the same since the effect from the potential exercise of
outstanding stock options would have been anti-dilutive.
NOTE C - Revenue Recognition
The Company's revenues are derived from contracts with multiple element
arrangements, which include the Company's system, training and technical
support. Revenues are recognized as each element is earned based on the relative
fair value of each element and when there are no undelivered elements that are
essential to the functionality of the delivered elements. The Company's system
is typically implemented by the customer or a third party and, as a result,
revenue is recognized when title passes to the customer, which usually is upon
delivery of the system, provided all other revenue recognition criteria are met.
Training and technical support revenues are generally recognized at time of
performance.
The Company also enters into post-contract maintenance and support agreements.
Revenue is recognized over the service period and the cost of providing these
services is expensed as incurred.
The Company also derives revenues under leasing arrangements. Such arrangements
provide for monthly payments covering the system sale, maintenance and interest.
These arrangements meet the criteria to be accounted for as sales-type leases
pursuant to Statement of Financial Accounting Standards No. 13, "Accounting for
Leases". Accordingly, the system sale is recognized upon delivery of the system,
provided all other revenue recognition criteria are met. Upon the recognition of
revenue, an asset is established for the "investment in sales-type leases".
Maintenance revenue and interest income are recognized monthly over the lease
term. The Company recognized $552,000 of system sales during the nine months
ended September 30, 2003 pursuant to such arrangements. These arrangements
provide for sixty equal monthly payments and interest has been imputed at
approximately 6% per annum.
4
The Company recognized $1,536,000 of system sales in 2002 in connection with an
installment sale. The arrangement provided for a $470,000 upfront payment and
equal monthly payments of approximately $26,000 through November 2007, which
include principal, imputed interest at approximately 7% and approximately $5,000
of maintenance, which is recognized as revenue monthly. $178,000 of the system
sales is classified as accounts receivable and $736,000 is classified as
"installment receivable - noncurrent portion" at September 30, 2003 in the
accompanying financial statements.
NOTE D - Stock-based compensation
The Company accounts for stock-based employee compensation under Accounting
Principles Board ("APB") Opinion No. 25, "Accounting for Stock Issued to
Employees", and related interpretations. The Company has adopted the
disclosure-only provisions of Statement of Financial Accounting Standards
("SFAS") No. 123, "Accounting for Stock-Based Compensation" and SFAS No. 148,
"Accounting for Stock-Based Compensation - Transition and Disclosure", which was
released in December 2002 as an amendment of SFAS No. 123. The following table
illustrates the effect on net income (loss) and earnings (loss) per share if the
fair value based method had been applied to all awards.
Three Months Ended Nine Months Ended
September 30, September 30,
--------------------- ------------------------
2002 2003 2002 2003
--------- ---------- ---------- -----------
Reported net loss $ (329,000) $(336,000) $(1,391,000) $ (932,000)
Stock-based employee compensation
determined under the fair value based
method, net of related tax effects (239,000) (216,000) (709,000) (659,000)
---------- ---------- ---------- ------------
Pro forma net loss $(568,000) $(552,000) $(2,100,000) $(1,591,000)
========== ========== ============ =============
Loss per share (basic and diluted):
As reported $(0.05) $(0.05) $(0.21) $(0.14)
========== ========== ============ =============
Pro forma $(0.08) $(0.08) $(0.31) $(0.23)
========== ========== ============ =============
NOTE E - Long Term Debt
In January 2003, the Company closed on a five-year term loan for $1,000,000 with
a financial institution. Interest at the 30 day LIBOR plus 1.75% and principal
are payable monthly. To hedge the loan's floating interest expense, the Company
entered into an interest rate swap contemporaneously with the closing of the
loan and fixed the rate of interest at 5.28% for the five year term. The loan is
secured by all the assets of the Company.
NOTE F- Line Of Credit
In April 2003, the Company renewed a working capital line of credit, with
maximum borrowings of $500,000. Interest at the 30 day LIBOR Market Index Rate
plus 1.75% is payable monthly. At September 30, 2003, the Company owed $137,000
under this line of credit. Outstanding principal amounts are payable by May 1,
2004.
NOTE G- Concentration Of Customers
One customer accounted for 80% and 54%, respectively, of the Company's revenue
during the three month and nine month periods ended September 30, 2003. The same
customer accounted for 64% of the Company's accounts and unbilled receivables at
September 30, 2003.
5
Item 2. Management's Discussion And Analysis
The following discussion and analysis of the Company's financial condition and
results of operations should be read in conjunction with the condensed financial
statements and notes thereto appearing elsewhere herein.
This Management's Discussion and Analysis of Financial Condition and Results of
Operations contains forward-looking statements that involve a number of risks
and uncertainties. The following are among the factors that could cause actual
results to differ materially from the forward-looking statements: business
conditions and growth in the wireless tracking industries, general economic
conditions, lower than expected customer orders or variations in customer order
patterns, competitive factors including increased competition, changes in
product and service mix, and resource constraints encountered in developing new
products. The forward-looking statements regarding industry trends, product
development and liquidity and future business activities should be considered in
light of these factors.
Results of Operations
The following table sets forth, for the periods indicated, certain operating
information expressed as a percentage of revenue:
Three months ended Nine months ended
September 30, September 30,
2002 2003 2002 2003
---------- ---------- -------- --------
Revenues 100.0% 100.0% 100.0% 100.0%
Cost of Revenues 40.3 46.6 44.8 48.2
---------- ---------- -------- -------
Gross Profit 59.7 53.4 55.2 51.8
Selling, general and
administrative expenses 72.1 62.4 79.1 59.8
Research and development expenses 17.0 13.9 22.9 12.7
---------- ---------- -------- --------
Loss from operations (29.4) (22.9) (46.8) (20.7)
Net interest income 7.9 3.6 7.5 3.7
---------- ---------- -------- --------
Net loss (21.5)% (19.3)% (39.3)% (17.0)%
---------- ---------- -------- ---------
Three Months Ended September 30, 2003 Compared to Three Months Ended September
30, 2002
REVENUES. Revenues were $1,743,000 in the three months ended September 30, 2003
as compared to $1,532,000 in the three months ended September 30, 2002. The
increase in revenues in the three-month period is attributable to increased
sales of the Company's Wireless Asset Net system for tracking and managing
fleets of industrial equipment. The Company's customers include Archer Daniels
Midland, DaimlerChrysler, Deere & Co., Ford Motor Company, Hallmark Cards, Price
Chopper Stores, Target Corporation, Toyota Motor Company, Walgreens, the U.S.
Department of Homeland Security, the U.S. Navy, and the U.S. Postal Service,
among others.
COST OF REVENUES. Cost of revenues were $812,000 in the three months ended
September 30, 2003 as compared to $617,000 in the three months ended September
30, 2002. As a percentage of revenues, cost of revenues were 46.6% in the three
months ended September 30, 2003 as compared to 40.3% in the three months ended
September 30, 2002. This percentage increase was primarily attributable to the
sale of higher margin services during the three-month period ended September 30,
6
2002. Gross profit was $931,000 in the three months ended September 30, 2003
compared to $915,000 in the three months ended September 30, 2002. As a
percentage of revenues, gross profit decreased to 53.4% in the three months
ended September 30, 2003 from 59.7% in the three months ended September 30,
2002.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES. Selling, general and
administrative expenses were $1,087,000 in the three months ended September 30,
2003 as compared to $1,104,000 in the three months ended September 30, 2002. As
a percentage of revenues, selling, general and administrative expenses decreased
to 62.4% in the three months ended September 30, 2003 from 72.1% in the three
months ended September 30, 2002.
RESEARCH AND DEVELOPMENT EXPENSES. Research and development expenses were
$243,000 in the three months ended September 30, 2003 as compared to $261,000 in
the three months ended September 30, 2002. As a percentage of revenues, research
and development expenses decreased to 13.9% in the three months ended September
30, 2003 from 17.0% in the three months ended September 30, 2002.
NET INTEREST INCOME AND EXPENSE.
Interest income was $79,000 in the three months ended September 30, 2003 as
compared to $123,000 in the three months ended September 30, 2002. This decrease
was attributable to the reduction in interest rates. The Company invests in
commercial paper and corporate bonds, which are classified as held to maturity.
Interest expense was $16,000 in the three months ended September 30, 2003
compared to $2,000 in the three months ended September 30, 2002. This increase
was attributable to the Company's working capital line of credit and its five
year term loan.
NET LOSS. Net loss was $336,000 in the three months ended September 30, 2003 as
compared to net loss of $329,000 in the three months ended September 30, 2002.
This was due primarily to the reasons described above.
Nine Months Ended September 30, 2003 Compared to Nine Months Ended September
30, 2002
REVENUES. Revenues were $5,477,000 in the nine months ended September 30, 2003
as compared to $3,541,000 in the nine months ended September 30, 2002. The
increase in revenues in the nine-month period is attributable to increased sales
of the Company's Wireless Asset Net system for tracking and managing fleets of
industrial equipment. The Company's customers include Archer Daniels Midland,
DaimlerChrysler, Deere & Co., Ford Motor Company, Hallmark Cards, Price Chopper
Stores, Target Corporation, Toyota Motor Company, Walgreens, the U.S. Department
of Homeland Security, the U.S. Navy, and the U.S. Postal Service, among others.
COST OF REVENUES. Cost of revenues were $2,643,000 in the nine months ended
September 30, 2003 as compared to $1,585,000 in the nine months ended September
30, 2002. As a percentage of revenues, cost of revenues were 48.2% in the nine
months ended September 30, 2003 as compared to 44.8% in the nine months ended
September 30, 2002. This percentage increase was primarily attributable to the
sale of higher margin services during the nine-month period ended September 30,
2002. Gross profit was $2,834,000 in the nine months ended September 30, 2003
compared to $1,956,000 in the nine months ended September 30, 2002. As a
percentage of revenues, gross profit decreased to 51.8% in the nine months ended
September 30, 2003 from 55.2% in the nine months ended September 30, 2002.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES. Selling, general and
administrative expenses were $3,275,000 in the nine months ended September 30,
2003 as compared to $2,801,000 in the nine months ended September 30, 2002. This
increase was primarily attributable to increased payroll expenses associated
with sales and marketing and an increase in insurance premiums for the Company's
7
director and officer liability policy. As a percentage of revenues, selling,
general and administrative expenses decreased to 59.8% in the nine months ended
September 30, 2003 from 79.1% in the nine months ended September 30, 2002.
RESEARCH AND DEVELOPMENT EXPENSES. Research and development expenses were
$694,000 in the nine months ended September 30, 2003 as compared to $812,000 in
the nine months, ended September 30, 2002. This decrease was attributable to the
completion of the Company's "universal system" of software and hardware for
tracking and managing fleets of industrial vehicles. The Company's research and
development efforts are currently focused on reducing product costs and
expanding product capability. As a percentage of revenues, research and
development expenses decreased to 12.7% in the nine months ended September 30,
2003 from 22.9% in the nine months ended September 30, 2002.
NET INTEREST INCOME AND EXPENSE.
Interest income was $244,000 in the nine months ended September 30, 2003 as
compared to $269,000 in the nine months ended September 30, 2002. This decrease
was attributable to the reduction in interest rates. The Company invests in
commercial paper and corporate bonds, which are classified as held to maturity.
Interest expense was $41,000 in the nine months ended September 30, 2003
compared to $3,000 in the nine months ended September 30, 2002. This increase
was attributable to the Company's working capital line of credit and its five
year tem loan.
NET LOSS. Net loss was $932,000 in the nine months ended September 30, 2003 as
compared to net loss of $1,391,000 in the nine months ended September 30, 2002.
This was due primarily to the reasons described above.
Liquidity and Capital Resources
As of September 30, 2003, the Company had $8,067,000 of cash, cash equivalents
and investments and $7,883,000 of working capital as compared to $7,757,000 and
$8,295,000, respectively, at December 31, 2002.
Net cash used in operating activities was $817,000 for the nine months ended
September 30, 2003 as compared to net cash used in operating activities of
$3,220,000 for the nine months ended September 30, 2002. Net cash used in
operating activities in the nine months ended September 30, 2003 was primarily
due to the net loss of $932,000, an increase in accounts receivable of $677,000,
an increase in unbilled receivables of $105,000, an increase in deferred
contract costs of $187,000 and a decrease in accounts payable and accrued
expenses of $217,000, partially offset by a decrease in investment in sales type
leases of $580,000, a decrease in inventory of $317,000, a decrease in
installment receivable of $131,000, and an increase in deferred revenue of
$196,000. Net cash used in operating activities in the nine months ended
September 30, 2002 was primarily due to the net loss of $1,391,000, an increase
in accounts receivable of $1,177,000, an increase in investments in sales type
leases of $705,000, an increase in inventory of $323,000, and an increase in
prepaid expenses and other assets of $138,000, partially offset by an increase
in other liabilities of $200,000, an increase in deferred revenue of $117,000
and depreciation and amortization of $148,000.
Net cash used in investing activities for the nine months ended September 30,
2003 was $1,699,000 as compared to net cash used in investing activities of
$1,875,000 for the nine months ended September 30, 2002. Net cash used in
investing activities in the nine months ended September 30, 2003 was
attributable to the purchase of investments of $3,723,000 and the purchase of
fixed assets of $246,000, offset by maturities of investments of $2,174,000. Net
8
cash used in investing activities in the nine months ended September 30, 2002
was for the purchase of investments of $4,827,000 and the purchase of fixed
assets of $316,000, offset by maturities of investments of $3,364,000.
Net cash provided by financing activities for the nine months ended September
30, 2003 was $1,405,000 as compared to cash provided by financing activities of
$6,440,000 for the nine months ended September 30, 2002. Net cash provided by
financing activities for the nine months ended September 30, 2003, resulted from
the proceeds, net of repayment of $822,000, received in connection with
obtaining a five year term loan and $523,000 of proceeds received from exercise
of employee stock options. Net cash provided by financing activities for the
nine months ended September 30, 2002, resulted from the proceeds of $6,143,000
received in connection with the sale of 821,250 shares of common stock, $169,000
of proceeds received from exercise of employee stock options, and $137,000 of
borrowings under a line of credit.
The Company believes it has sufficient cash, cash equivalents and investments
for the next twelve months of operations.
The Company believes its operations have not been and, in the foreseeable
future, will not be materially adversely affected by inflation or changing
prices.
Recently Issued Financial Standards
The Company believes that recently issued financial standards will not have a
significant impact on our results of operations, financial position or cash
flows.
Item 3. Controls And Procedures
(a) Evaluation of Disclosure Controls and Procedures.
Disclosure controls and procedures are designed to ensure that information
required to be disclosed in the reports filed or submitted under the Exchange
Act is recorded, processed, summarized and reported, within the time period
specified in the SEC's rules and forms. Disclosure controls and procedures
include, without limitation, controls and procedures designed to ensure that
information required to be disclosed in the reports filed under the Exchange Act
is accumulated and communicated to management, including the Chief Executive
Officer and Chief Financial Officer, as appropriate, to allow timely decisions
regarding required disclosure. As of the end of the period covered by this
report, the Company carried out an evaluation, under the supervision and with
the participation of the Company's management, including the Company's Chief
Executive Officer and Chief Financial Officer, of the effectiveness of the
design and operation of the Company's disclosure controls and procedures. Based
upon and as of the date of that evaluation, the Chief Executive Officer and
Chief Financial Officer concluded that the Company's disclosure controls and
procedures are effective to ensure that information required to be disclosed in
the reports the Company files and submits under the Exchange Act is recorded,
processed, summarized and reported as and when required.
(b) Changes in Internal Controls over Financial Reporting.
There were no changes in the Company's internal controls over financial
reporting identified in connection with the Company's evaluation of these
controls as of the end of the period covered by this report that could have
significantly affected those controls subsequent to the date of the Company's
most recent evaluation.
9
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits:
31.1 Certification of the Chief Executive Officer pursuant to Section 302
of the Sarbanes-Oxley Act of 2002.
31.2 Certification of the Chief Financial Officer pursuant to Section 302
of the Sarbanes-Oxley Act of 2002.
32 Certifications of the Chief Executive Officer and Chief Financial
Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
(b) Reports on Form 8-K:
On August 19, 2003, the Company filed a Current Report on Form 8-K under
Items 7 and 12.
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.
I.D. Systems, Inc.
Dated: November 14, 2003 By: /s/ Jeffrey M. Jagid
----------------------------
Jeffrey M. Jagid
Chief Executive Officer
(Principal Executive Officer)
Dated: November 14, 2003 By: /s/ Ned Mavrommatis
----------------------------
Ned Mavrommatis
Chief Financial Officer
(Principal Financial Officer)
10