AIOT PowerFleet Inc

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Description of the Company

Powerfleet, Inc. (the “Company” or “Powerfleet”) is a global leader of Internet-of-Things (“IoT”) solutions providing valuable business intelligence for managing high-value enterprise assets that improve operational efficiencies.

I.D. Systems, Inc. (“I.D. Systems”) was incorporated in the State of Delaware in 1993. Powerfleet was incorporated in the State of Delaware in February 2019 for the purpose of effectuating the transactions pursuant to which the Company acquired Pointer Telocation Ltd. (“Pointer”) and commenced operations on October 3, 2019. Upon the closing of such transactions, Powerfleet became the parent entity of I.D. Systems and Pointer.

On April 2, 2024 (the “Implementation Date”), the Company consummated the transactions contemplated by the Implementation Agreement, dated as of October 10, 2023 (the “Implementation Agreement”), that the Company entered into with Main Street 2000 Proprietary Limited, a private company incorporated in the Republic of South Africa and a wholly owned subsidiary of the Company (“Powerfleet Sub”), and MiX Telematics Limited, a public company incorporated under the laws of the Republic of South Africa (“MiX Telematics”), pursuant to which MiX Telematics became an indirect, wholly owned subsidiary of the Company (the “MiX Combination”). The consolidated financial statements as of and for the three months ended June 30, 2024 include the financial results of MiX Telematics and its subsidiaries from the Implementation Date. See Note 3 for additional information.

Basis of Preparation

The unaudited interim condensed consolidated financial statements include the accounts of the Company and its wholly owned and majority-owned subsidiaries. All material intercompany balances and transactions have been eliminated in consolidation. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP 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 consolidated financial position of the Company as of March 31, 2024 and June 30, 2024, the consolidated results of its operations for the three-month periods ended June 30, 2023 and 2024, the consolidated change in stockholders’ equity for the three-month periods ended June 30, 2023 and 2024, and the consolidated cash flows for the three-month periods ended June 30, 2023 and 2024. The results of operations for the three-month period ended June 30, 2024 are not necessarily indicative of the operating results for the full year. On May 8, 2024, our Board of Directors approved a change in our fiscal year end from December 31 to March 31 in order to better align our reporting calendar with the April 2, 2024 close of the MiX Combination and MiX Telematics’ historical March 31 fiscal year end. These financial statements should be read in conjunction with the audited consolidated financial statements and related disclosures for the fiscal year ended December 31, 2023 included in the Company’s Annual Report on Form 10-K for the year then ended, and the audited consolidated financial statements and related disclosures for the three-month transition period ended March 31, 2024 included in the Company’s Transition Report on Form 10-KT for the period then ended.

Restatement of Previously Issued Consolidated Financial Statements

In connection with the preparation of the Company’s audited consolidated financial statements for the year ended December 31, 2023, the Company determined that the accounting for the redemption premium associated with its Series A convertible preferred stock (“Series A Preferred Stock”) was understated resulting in an understatement of “net loss attributable to common stockholders” and “net loss per share attributable to common stockholders” for each period, an understatement of the value of the convertible redeemable preferred stock as of each balance sheet date, and an overstatement of the additional paid-in capital as of each balance sheet date. The required adjustments to correct the redemption value of the calculation of the Series A Preferred Stock and the related accretion of the value of the preferred stock in the consolidated statement of operations included the recording of a non-cash accretion which resulted in an increase in the net loss attributable to common stockholders, an increase in the “convertible redeemable preferred stock”, and a decrease of “additional paid-in capital” for the fiscal years ended December 31, 2021 and 2022 and each of the interim periods during the 2022 and 2023 fiscal years.

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The correction of the error resulted in reporting the value of the convertible preferred stock including the accretion to the redemption value from the date of original issuance through each balance sheet date applying the interest method. The restatement to non-cash accretion resulted in an increase in the net loss attributable to common stockholders and a decrease in “additional paid-in capital” of $1,604 for the 3 months ended June 30, 2023. The Company had determined that it was appropriate to restate the financial statements for the fiscal years ended December 31, 2021 and 2022 and each of the interim periods during the 2022 and 2023 fiscal years included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 (the “2023 Annual Report”). In addition, the Company also corrected other unrelated immaterial errors that were previously either unrecorded or recorded as out-of-period adjustments. For additional information refer to Note 2 to the financial statements included in the 2023 Annual Report.

Going Concern

As of June 30, 2024, the Company had cash and cash equivalents of $30,242 and working capital of $25,044. The Company’s primary sources of cash are cash flows from sales of products and services, its holdings of cash, cash equivalents and proceeds from the sale of its capital stock and borrowings under its credit facilities. See Note 13 for additional information on the Company’s available credit facilities.

Management believes the Company’s cash, cash equivalents, and restricted cash of $31,393 as of June 30, 2024 in conjunction with cash generated from the execution of its strategic plan over the next 12 months, and proceeds from the debt agreements are sufficient to fund the projected operations for at least the next 12 months from the issuance date of these financial statements (August 28, 2024) and service the Company’s outstanding obligations. Such expectation is based, in part, on the achievement of a certain volume of assumed revenue and gross margin; however, there is no guarantee the Company will achieve this amount of revenue and gross margin during the assumed time period. Management assessed various additional operating cost reduction options that are available to the Company and would be implemented, if assumed levels of revenue and gross margin are not achieved and additional funding is not obtained.

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company continually evaluates estimates used in the preparation of the financial statements for reasonableness. The most significant estimates relate to assumptions used in business combinations, allowance for credit losses, income taxes, realization of deferred tax assets, accounting for uncertain tax positions, the impairment of intangible assets, including goodwill and long-lived assets, capitalized software development costs, inventory reserves, standalone selling prices (“SSP”), valuation of the derivative asset, and market-based stock-based compensation costs. Actual results could differ from those estimates.

On April 2, 2024, the Company consummated the MiX Combination. On the Implementation Date, Powerfleet Sub acquired all the issued ordinary shares of MiX Telematics (including those represented by MiX Telematics’ American Depositary Shares) through the implementation of a scheme of arrangement in accordance with Sections 114 and 115 of the South African Companies Act, No. 71 of 2008, as amended, in exchange for shares of the Company’s common stock. As a result, MiX Telematics became the Company’s indirect, wholly owned subsidiary.

The MiX Combination met the criteria for a business combination to be accounted for using the acquisition method under ASC 805, Business Combinations (“ASC 805”), with the Company identified as the legal and the accounting acquirer.

The Company was determined to be the accounting acquirer under Accounting Standards Codification (“ASC”) 805, Business Combinations (“ASC 805”) based on the evaluation of the following facts and circumstances favoring Powerfleet as the accounting acquirer over those supporting MiX Telematics as the accounting acquirer:

•The majority of the Board of Directors is comprised by Directors with prior affiliation to the Company. In addition the Company’s Board Chairperson continued in the role post the acquisition date;

•Post acquisition the majority of the senior management team, including the Chief Executive Officer, comprised of the Company’s senior management team who were already operating in that capacity for the company prior to the acquisition date;

•While the voting rights of 65.5% in favor of MiX Telematics is an indicator that MiX Telematics is the acquirer, the Company believes that the weight of the indicator is tempered given that the negotiated premium paid by Powerfleet to MiX Telematics contributed to the relative ownership split, and that, qualitatively, the significant reduction in the

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carryover MiX Telematics institutional investor base would have reduced the legacy MiX Telematics shareholders’ ability to control the combined entity, particularly in the light of the significant concentration of institutional investors on the Powerfleet side; and

•While no individual or organized group owns a large minority interest in the combined entity, the Company notes that the largest institutional investor post-transaction is an investor of legacy Powerfleet. Additionally, the Company also notes that, immediately following the closing of the Business Combination, 30% out of the approximately 35% of total shares held by shareholders of legacy Powerfleet were concentrated in the Company’s top 20 institutional shareholders, compared to only 9% out of the approximately 65% of total shares held by shareholders of legacy MiX Telematics.

The acquisition of MiX Telematics and its business will, among other things:

•create a mobile asset IoT SaaS organization with significant scale, serving all mobile asset types. The increased scale is expected to enable the combined entity to more efficiently serve its customers and create advantages to compete in an industry characterized by the need for high pace of development and innovation;

•enable the Company to maximize significant cross-sell and upsell opportunities within its large joint customer base due to the joint entity’s combined geographical footprint, deep vertical expertise and expanded software solution sets coupled with its extensive direct and indirect sales channel capabilities; and

•enable the combined organization to accelerate the delivery of top-class solutions with improved competitive advantage by integrating Powerfleet’s and MiX Telematics’ world-class engineering and technology teams.

The preliminary estimated fair value of the consideration transferred for MiX Telematics was $362.0 million as of the Implementation Date, which consisted of the following:

(in thousands, except for share price and exchange ratio)						April 2, 2024
Number of MiX Telematics ordinary shares outstanding						554,021
Exchange ratio						0.12762
Shares of Powerfleet common stock to be issued for MiX Telematics ordinary shares outstanding						70,704
Powerfleet stock price*						5.12
Fair value of Powerfleet common stock transferred to MiX Telematics shareholders						362,005
Replacement of acquiree’s equity awards by the acquirer**						7,818
Total fair value of preliminary consideration						369,823

* Powerfleet’s closing share price on April 2, 2024.

** The portion of the fair-value-based measure of the replacement award that is part of the consideration transferred in exchange for the acquiree equals the portion of the acquiree award that is attributable to pre-combination vesting.

Preliminary Allocation of Purchase Price

The purchase price was allocated to the assets and liabilities assumed based on the estimated fair values at the date of acquisition. The excess of the purchase price over the fair value of the net assets acquired was allocated to goodwill. Goodwill is primarily attributed to the assembled workforce, expected synergies from future expected economic benefits, including enhanced revenue growth from expanded products and capabilities, as well as substantial cost savings from duplicative overheads, streamlined operations and enhanced efficiency. Goodwill is not deductible for tax purposes. Goodwill associated with the acquisition has not yet been assigned to the Company's geographical regions pending finalization of the purchase accounting.

The preliminary allocation of purchase price was as follows (in thousands):

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						April 2, 2024
Assets acquired:
Cash and cash equivalents						$	26,737
Restricted cash						794
Accounts receivable, net						24,675
Inventory, net						4,142
Prepaid expenses and other current assets						8,886
Fixed assets, net						35,587
Intangible assets, net						153,000
Right-of-use asset						3,794
Deferred tax assets						1,093
Other assets						973
Total assets acquired						$	259,681
Liabilities assumed:
Short-term bank debt and current maturities of long-term debt						$	20,158
Accounts payable and accrued expenses						26,400
Deferred revenue - current						6,394
Lease liability - current						859
Income taxes payable						355
Lease liability - less current portion						2,852
Deferred tax liability						48,725
Other long-term liabilities						484
Total liabilities assumed						$	106,227
Total identifiable net assets acquired						$	153,454
Non-controlling interest						(5)
Goodwill						216,374
Purchase price consideration						$	369,823

The above fair values of assets acquired and liabilities assumed are preliminary and are based on the information that was available as of the reporting date. The Company’s allocation of the preliminary purchase price to certain assets acquired and liabilities assumed is provisional and the Company will continue to adjust those estimates as additional information pertaining to events or circumstances present at April 2, 2024 becomes available and final valuation and analysis are completed. In addition, the Company is still in the process of determining the fair value of acquired assets and assumed liabilities, which may also result in adjustments of the provisional amounts recorded. The fair values of the assets acquired and liabilities assumed, including the identifiable assets acquired, have been preliminarily determined using the income and cost approach, and are partially based on inputs that are unobservable. The Company used discounted cash flow (“DCF”) analyses, which represent Level 3 fair value measurements, to assess certain components of its purchase price allocation as a result of the acquisition. The fair value of the customer relationships was determined using the multi-period excess earnings method. The fair value of the tradename and developed technology was determined using an income approach based on the relief from royalty method.

For the fair value estimates, the Company used (i) forecasted future cash flows, (ii) historical and projected financial information, (iii) synergies including cost savings, (iv) revenue growth rates, (v) customer attrition rates, (vi) royalty rates, and (vii) discount rates, as relevant, that market participants would consider when estimating fair values. These estimates require judgment and are subject to change. Differences between the preliminary estimates and final accounting may occur, and those could be material.

The Company believes that the information provides a reasonable basis for estimating the fair values of the acquired assets and assumed liabilities, but the potential for measurement period adjustments exists based on the Company’s continuing review of

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matters related to the acquisition. Adjustments to initial preliminary fair value of the assets acquired and assumed liabilities during the measurement period until April 2, 2025, will be recorded during the period in which the adjustments are determined, including the effect on earnings of any amounts we would have recorded in previous periods if the accounting had been completed (i.e. the historical reported financial statements will not be retrospectively adjusted).

The provisional amounts for assets acquired and liabilities assumed include:

•The fair value of accounts receivable and other receivables which may be subject to adjustment for reassessment of collectability as of the date of acquisition, collections and other adjustment subsequent to the acquisition;

•Property, and equipment, for which the preliminary estimates are subject to revision for finalization of preliminary appraisals;

•Right-of-use assets and lease liabilities, which will be subject to adjustment upon completion of the review of the inputs, including sublease assumptions, for the calculations;

•Acquired inventory, which values are still being assessed on an individual basis;

•Prepaid expenses, accounts payable and accrued expenses, which will be subject to adjustment based upon completion of working capital clean up and assessment of other factors;

•The recognition and measurement of contract assets and contract liabilities acquired in accordance with ASC 606 will be subject to adjustment upon completion of assessment;

•Acquired intangible assets will be subject to adjustment as additional assets are identified, estimates and forecasts are refined and disaggregated, useful lives are finalized, and other factors deemed relevant are considered;

•Deferred income taxes will be subject to adjustment based upon the completion of the review of the book and tax bases of assets acquired and liabilities assumed, applicable tax rates and the impact of the revisions of estimates for the items described above; and

•Goodwill will be subject to adjustment for the impact of the revisions of estimates for the items described above.

The Company expects to complete the purchase price allocation as soon as practicable, but no later than one year from the acquisition date.

Acquired Identifiable Intangible Assets

The following table sets forth preliminary estimated fair values of the components of the identifiable intangible assets acquired and their estimated useful lives:

(in thousands)			Fair value						Weighted average useful lives
Trade name			$	10,000					14			years
Developed technology			30,000						5			years
Customer relationships			113,000						13			years
			$	153,000

Acquisition-Related Expenses

The Company expensed a total of $20,291 of acquisition-related costs in the consolidated statement of operations related to the MiX Combination, of which $14,491 was expensed in the three-month period ended June 30, 2024.

Unaudited Pro Forma Financial Information

The business acquired in the MiX Combination contributed revenue of $43,689 and a net loss of $6,932, after amortization of identified intangibles, for the three months ended June 30, 2024.

The Company considers all highly liquid debt instruments with an original maturity of three months or less when purchased to be cash equivalents unless they are legally or contractually restricted. The Company’s cash and cash equivalent balances exceed Federal Deposit Insurance Corporation (“FDIC”) and other local jurisdictional limits. Restricted cash at March 31, 2024 consisted of escrow amounts of $85,000 for the Facilities Agreement deposited in escrow for the MiX Combination and cash of $310 held in escrow for purchases from a vendor. Restricted cash at June 30, 2024 consists of cash of $310 held in escrow for purchases from a vendor, cash of $787 held by MiX Telematics Enterprise BEE Trust (a VIE which is consolidated) to be used

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solely for the benefit of its beneficiaries and cash securing guarantees of $54 issued in respect of property lease agreements entered into by MiX Telematics Australasia.

The Company and its subsidiaries generate revenue from sales of systems and products and from customer SaaS and hosting infrastructure fees. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods or providing services. Sales, value add, and other taxes the Company collects concurrently with revenue-producing activities are excluded from revenue. Incidental items that are immaterial in the context of the contract are recognized as an expense. The expected costs associated with the Company’s base warranties continue to be recognized as an expense when the products are sold (see Note 14).

Revenue is recognized when performance obligations under the terms of a contract with the customer are satisfied. Product sales are recognized at a point in time when title transfers, when the products are shipped, or when control of the system is transferred to the customer, which usually is upon delivery of the system and when contractual performance obligations have been satisfied. The Company utilizes significant judgment to determine whether control of the hardware has transferred to the customer (i.e. distinct to the customer separate from SaaS services provided). For products which are not distinct to the customer separate from the SaaS services provided, the Company considers both hardware and SaaS services a bundled performance obligation.

Under the applicable accounting guidance, all of the Company’s billings for future services are deferred and classified as a current and long-term liability. The deferred revenue is recognized over the service contract life, ranging from one to five years, beginning at the time that a customer acknowledges acceptance of the equipment and service. Payment terms are generally 30 days after invoice date.

The Company recognizes revenue for remotely hosted SaaS agreements and post-contract maintenance and support agreements beyond its standard warranties over the life of the contract. Revenue is recognized ratably over the service periods and the cost of providing these services is expensed as incurred. Amounts invoiced to customers which are not recognized as revenue are classified as deferred revenue and classified as current or long-term based upon the terms of future services to be delivered. Deferred revenue also includes prepayment of extended maintenance, hosting and support contracts.

The Company earns other service revenues from installation services, training and technical support services which are short-term in nature and revenue for these services is recognized at the time of performance when the service is provided.

The Company also derives revenue from leasing arrangements. Such arrangements provide for monthly payments covering product or system sale, maintenance, support and interest. These arrangements meet the criteria to be accounted for as operating or sales-type leases. Accordingly, for sales-type leases an asset is established for the “sales-type lease receivable” at the present value of the expected lease payments and revenue is deferred and recognized over the service contract, as described above. Maintenance revenues and interest income are recognized monthly over the lease term.

The Company’s contracts with customers may include multiple performance obligations. For such arrangements, the Company allocates revenue to each performance obligation based on its relative SSP. Judgment is required to determine the SSP for each distinct performance obligation. The Company generally determines standalone selling prices based on observable prices charged to customers. Significant pricing practices taken into consideration include the Company’s discounting practices, the size and volume of its transactions, the customer demographic, price lists, its go-to-market strategy and historical and current sales and contract prices. As the Company’s go-to-market strategies evolve, it may modify its pricing practices in the future, which could result in changes to SSP.

In certain cases, the Company is able to establish SSP based on observable prices of products or services sold separately in comparable circumstances to similar customers. The Company uses a single amount to estimate SSP when it has observable prices. If SSP is not directly observable, for example when pricing is highly variable, the Company uses a range of SSP. The Company determines the SSP range using information that may include pricing practices or other observable inputs. The Company typically has more than one SSP for individual products and services due to the stratification of those products and services by customer size.

The Company recognizes an asset for the incremental costs of obtaining the contract arising from the sales commissions to distributors and employees because the Company expects to recover those costs through future fees from the customers. The Company amortizes the asset over one to five years because the asset relates to the services transferred to the customer during the contract term of one to five years.

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The Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which the Company recognizes revenue at the amount to which the Company has the right to invoice for services performed.

The following table presents the Company’s revenues disaggregated by revenue source for the three-months ended June 30, 2023 and 2024 (in thousands):

									Three Months Ended June 30,
									2023						2024
Products									$	11,084					$	18,738
Services									21,008						56,692
									$	32,092					$	75,430

The balances of contract assets and contract liabilities from contracts with customers are as follows as of March 31, 2024 and June 30, 2024 (in thousands):

									March 31, 2024						June 30, 2024
Contract Assets:
Deferred contract cost(1)									$	2,632					$	4,322
Deferred costs - current									$	42					$	24
Contract Liabilities
Deferred revenue – services (2)									$	10,674					$	14,724
Deferred revenue – products (2)									60						120
									10,734						14,844
Less: Deferred revenue – current									(5,842)						(10,019)
Deferred revenue – less current portion									$	4,892					$	4,825

(1) Deferred Contract costs are included in Other assets on the Condensed Consolidated Balance sheets.

(2) The Company records deferred revenues when cash payments are received or due in advance of the Company’s performance. For the three-month periods ended June 30, 2023 and 2024, the Company recognized revenue of $1,766 and $2,986, respectively, which was included in the deferred revenue balance at the beginning of each reporting period. The Company expects to recognize as revenue through year 2029, when it transfers those goods and services and, therefore, satisfies its performance obligation to the customers.

The Company’s receivables were evaluated to determine an appropriate allowance for credit losses. For trade receivables, the Company’s historical collections were analyzed by the number of days past due to determine the uncollectible rate in each range of days past due and considerations of any changes expected in the future. The estimate of the allowance for credit losses is charged to the allowance for credit losses based on the age of receivables multiplied by the historical uncollectible rate for the range of days past due or earlier if the account is deemed uncollectible for other reasons. Recoveries of amounts previously charged as uncollectible are credited to the allowance for credit losses.

An analysis of the allowance for credit losses for the periods ended June 30, 2023 and 2024 is as follows (in thousands):

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									Three Months Ended June 30,
									2023						2024
Allowance for credit losses, March 31									$	2,328					$	3,197
Current period provision for expected credit losses									598						1,993
Write-offs charged against the allowance									(222)						(1,509)
Foreign currency translation									62						46
Allowance for credit losses, June 30									$	2,766					$	3,727

Prepaid expenses and other current assets comprise the following (in thousands):

									March 31, 2024						June 30, 2024
Sales-type lease receivables, current									$	1,100					$	1,125
Prepaid expenses*									2,817						5,772
Contract assets									1,162						1,141
Tax receivables									125						790
Vat receivable									—						2,059
Sundry debtors									—						2,602
Other current assets									2,887						3,009
									$	8,091					$	16,498

*This represents the prepaid portion of total deferred contract assets

Inventory, which primarily consists of finished goods and components used in the Company’s products, is stated at the lower of cost or net realizable value using the “moving average” cost method or the first-in first-out (FIFO) method. Inventory is shown net of a valuation reserve of $538 at March 31, 2024 and $97 at June 30, 2024.

Inventories consist of the following (in thousands):

									March 31, 2024						June 30, 2024
Components									$	9,403					$	9,195
Work in process									49						1,788
Finished goods, net									12,206						14,849
									$	21,658					$	25,832

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Fixed assets are stated at cost, less accumulated depreciation and amortization, and are summarized as follows (in thousands):

									March 31, 2024						June 30, 2024
Installed and uninstalled products									$	11,030					$	46,129
Computer software									11,496						12,231
Computer and electronic equipment									6,179						7,126
Furniture and fixtures									2,361						3,733
Leasehold improvements									1,498						1,445
Plant and equipment									—						293
Assets in progress									—						19
									32,564						70,976
Accumulated depreciation and amortization									(19,845)						(21,271)
									$	12,719					$	49,705

The Company capitalizes costs for software to be sold, marketed, or leased to customers. Costs incurred internally in researching and developing software products are charged to expense until technological feasibility has been established for the product. Once technological feasibility is established, software costs are capitalized until the product is available for general release to customers. Judgment is required in determining when technological feasibility of a product is established. The amortization of these costs is included in cost of revenue over the estimated life of the products.

The following table summarizes identifiable intangible assets of the Company as of March 31, 2024 and June 30, 2024 (in thousands):

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June 30, 2024						Useful Lives (In Years)						Gross Carrying Amount						Accumulated Amortization						Net Carrying Amount
Amortized:
Customer relationships						1 - 13						$	132,264					$	(10,834)					$	121,430
Trademark and tradename						3 - 15						17,553						(4,253)						13,300
Patents						7 - 11						628						(486)						142
Technology						1 - 20						44,561						(14,236)						30,325
Software to be sold or leased						3 - 6						5,727						(996)						4,731
												200,733						(30,805)						169,928
Unamortized
Customer list												104						—						104
Trademark and tradename												61						—						61
												165						—						165
Total												$	200,898					$	(30,805)					$	170,093

March 31, 2024						Useful Lives (In Years)						Gross Carrying Amount						Accumulated Amortization						Net Carrying Amount
Amortized:
Customer relationships						9 - 12						$	19,264					$	(8,012)					$	11,252
Trademark and tradename						3 - 15						7,553						(3,877)						3,676
Patents						7 - 11						628						(464)						164
Technology						7						10,911						(10,911)						—
Software to be sold or leased						3						5,159						(764)						4,395
												43,515						(24,028)						19,487
Unamortized
Customer list												104						—						104
Trademark and tradename												61						—						61
												165						—						165
Total												$	43,680					$	(24,028)					$	19,652

At June 30, 2024, the weighted-average amortization periods for customer relationships, trademarks and trade names, patents, technology, and capitalized software to be sold or leased were 12.7, 12.1, 7, 11.6, and 3.0 years, respectively.

For the three months ended June 30, 2023 and 2024, amortization expense of $1,356 and $5,586 respectively was recognized in both periods.

Estimated future amortization expense for each of the five succeeding fiscal years for these intangible assets is as follows:

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2025 (remaining)						$	15,528
2026						22,138
2027						21,145
2028						18,067
2029						14,578
Thereafter						78,472
						$	169,928

Refer to Note 3 for the change in the carrying amount of goodwill from April 1, 2024 to June 30, 2024 as a result of the MiX Combination.

For the three-month period ended June 30, 2024, the Company did not identify any indicators of impairment.

During the three-month period ended June 30, 2024, the Company granted options to purchase 375 shares of common stock with time-based vesting conditions.

[A] Stock Options:

The following table summarizes the activity relating to the Company’s market-based stock options for the three-month period ended June 30, 2024:

			Options						Weighted- Average Exercise Price						Weighted Average Contractual Remaining Term (years)						Aggregate Intrinsic Values (in thousands)*
Outstanding as of April 1, 2024			5,445						13.39						—						—
Granted			—						—						—						—
Exercised			—						—						—						—
Forfeited			—						—						—						—
Outstanding as of June 30, 2024			5,445						13.39						7.72						$	1,488
Vested as of June 30, 2024			—						—						—						$	—

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The following table summarizes the activity relating to the Company’s stock options, excluding the market-based stock options, for the three-month period ended June 30, 2024:

			Options						Weighted- Average Exercise Price						Weighted Average Contractual Remaining Term (years)						Aggregate Intrinsic Values (in thousands)*
Outstanding as of April 1, 2024			1,979						4.68						—						—
Granted			375						4.31						—						—
Exercised			—						—						—						—
Forfeited			(6)						6.10						—						—
Outstanding as of June 30, 2024			2,348						4.62						7.2						$	779
Vested as of June 30, 2024			1,973						4.67						6.6						$	779

The fair value of each option grant on the date of grant is estimated using the Black-Scholes option-pricing model reflecting the following weighted-average assumptions:

						June 30, 2023						June 30, 2024
Expected volatility						55.6		%				60.2		%
Expected life of options						6.1						6.5
Risk free interest rate						3.87		%				4.23		%
Dividend yield						—						—
Weighted-average fair value of options granted during the year						$1.66						$2.66

Expected volatility is based on historical volatility of the Company’s common stock and the expected life of options is based on historical data with respect to employee exercise periods.

The Company recorded stock-based compensation expense of $585 and $1,817 for the three-month periods ended June 30, 2023 and June 30, 2024, respectively, in connection with awards made under the stock option plans. The increase in the recognized expense is due to the approved acceleration of vesting of unvested restricted stock and stock option awards with time-based vesting conditions that are outstanding under the Powerfleet equity plans (including any inducement awards with time-based vesting). The accelerated vesting of the Company’s equity awards is not part of what was acquired in the MiX Combination, nor what was paid for in the MiX Combination because it was for the benefit of the Company’s employees rather than for the benefit of MiX Telematics employees. Therefore, the acceleration of the equity awards was treated as a separate transaction from the MiX Combination and the acceleration of vesting was accounted for immediately upon closing of the MiX Combination on April 2, 2024.

The fair value of options vested during the three-month periods ended June 30, 2023 and 2024 was $562 and $1,457, respectively. There were no option exercises that occurred during the three-month periods ended June 30, 2023 and 2024.

As of June 30, 2024, there was $983 of total unrecognized compensation costs related to non-vested options granted under the Company’s stock option plans excluding the market-based stock options that were granted to certain senior managers, including the Company’s executive officers. That cost is expected to be recognized over a weighted-average period of 1.34 years.

As of June 30, 2024, there was $3,597 of total unrecognized compensation costs related to non-vested options granted under the Company’s stock option plans for the market-based stock options that were granted to certain senior managers, including the Company’s executive officers. That cost is expected to be recognized over a weighted-average period of 7.72 years.

The Company estimates forfeitures at the time of valuation and reduces expenses ratably over the vesting period. This estimate is adjusted periodically based on the extent to which actual forfeitures differ, or are expected to differ, from the previous estimate.

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[B] Restricted Stock Awards:

The Company grants restricted stock to employees, whereby the employees are contractually restricted from transferring the shares until they are vested. The stock is unvested at the time of grant, and, upon vesting, there are no legal restrictions on the stock. Some participants have the option to have their shares withheld for their taxes upon vesting. Shares withheld for taxes are treated as a purchase of treasury stock. The fair value of each share is based on the Company’s closing stock price on the date of the grant. A summary of all non-vested restricted stock for the three-month period ended June 30, 2024 is as follows:

						Number of Non-Vested Shares						Weighted- Average Grant Date Fair Value
Non-vested, March 31, 2024						1,370						2.68
Granted						54						5.45
Vested						(1,369)						2.68
Forfeited or expired						—						—
Non-vested, June 30, 2024						55						2.68

The Company recorded stock-based compensation expenses of $267 and $3,095 for the three-month periods ended June 30, 2023 and 2024, respectively, in connection with restricted stock grants. As of June 30, 2024, there was $258 of total unrecognized compensation cost related to non-vested shares. That cost is expected to be recognized over a weighted-average period of 0.88 years. The increase in the recognized expense is due to the approved acceleration of vesting of unvested restricted stock and stock option awards with time-based vesting conditions that are outstanding under the Powerfleet equity plans (including any inducement awards with time-based vesting). The accelerated vesting of the Company’s equity awards is not part of what was acquired in the MiX Combination, nor what was paid for in the MiX Combination because it was for the benefit of the Company’s employees rather than for the benefit of MiX Telematics employees. Therefore, the acceleration of the equity awards was treated as a separate transaction from the MiX Combination and the acceleration of vesting was accounted for immediately upon closing of the MiX Combination on April 2, 2024.

[C] Stock Appreciation Rights:

In connection with the closing of the MiX Combination, the Company assumed each of the MiX Telematics’ share plans. MiX Telematics issued equity-classified share incentives under the MiX Telematics Long-Term Incentive Plan (“LTIP”) to directors and certain key employees within the Company.

The LTIP provides for three types of grants to be issued, namely performance shares, restricted share units and stock appreciation rights (“SARs”). On the Implementation Date,the only issued and outstanding equity awards under the LTIP were SARs, and the Company assumed the outstanding SARs in issue. No additional performance shares or restricted share units will be issued or assumed by the Company.

The replacement of MiX Telematics’ share-based payment awards has been treated as a modification under ASC 718, Compensation—Stock Compensation as of the Implementation Date. The fair value of the replacement SARs issued was allocated between pre-combination and post-combination service based on the vesting period. The fair value related to pre-combination service is included as part of the fair value of the consideration in the MiX Combination (see Note 3), and the fair value related to post-combination service is to be recognized as an expense over the remaining vesting period.

The total stock-based compensation expense recognized during the three months ended June 30, 2024 was $1.0 million.

The following table summarizes the activities for the outstanding SARs:

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			Number of SARs						Weighted- Average Exercise Price						Weighted Average Contractual Remaining Term (years)						Aggregate Intrinsic Values (in thousands)*
Outstanding as of April 1, 2024			—						—
Acquired through MiX Combination			5,740						2.61
Granted			—						—
Exercised			—						—
Forfeited			—						—
Outstanding as of June 30, 2024			5,740						2.61						3.33
Vested as of June 30, 2024			1,813						2.98						1.80						$	2,881

As of June 30, 2024, there was $7.5 million of unrecognized compensation cost related to unvested SARs. This amount is expected to be recognized over a weighted-average period of 3.26 years.

Net loss per share for the three-month periods ended June 30, 2023 and 2024 are as follows:

												Three Months Ended June 30,
																		2023						2024
Basic and diluted loss per share
Net loss attributable to common stockholders																		$	(6,170)					$	(22,337)
Net loss per share attributable to common stockholders - basic and diluted																		$	(0.17)					$	(0.21)
Weighted-average common share outstanding - basic and diluted																		35,605						107,136

												March 31, 2024						June 30, 2024
Short-term bank debt												$	—					$	25,007
Current maturities of long-term debt												$	1,951					$	2,597
Long-term debt - less current maturities												$	113,810					$	111,957

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Short-Term Bank Debt

As of June 30, 2024 short-term debt comprised $24,323 of borrowing facilities and $684 of book overdrafts.

Investec Facility

The Investec Bank Limited (“Investec”) credit facility was a 364-day renewable committed general credit facility of R350,000 (the equivalent of $19,232 as of June 30, 2024) (the “Committed Facility”). As of June 30, 2024, $19,232 of the Committed Facility was utilized. The Committed Facility was settled in August 2024 and closed.

Under the Committed Facility, MiX Telematics paid a commitment fee charged at 30bps on any undrawn portion of the Committed Facility (plus VAT on such amount), calculated monthly and payable, free of deduction, monthly in arrears on the first business day of each month.

The loans under the Committed Facility bore interest at South African prime interest rate less 1.5% per annum. As of June 30, 2024, the South African prime interest rate was 11.75%. Interest was payable monthly in arrears on the first business day of each month, or as otherwise specified in the credit agreement between Investec and MiX Telematics.

MiX Telematics Africa (Pty) Ltd, MiX Telematics International (Pty) Ltd and MiX Telematics Enterprise SA (Pty) Ltd issued guarantees in favor of Investec in terms of which they guaranteed the performance by MiX Telematics of all its obligations to Investec.

Standard Bank Facility

The Standard Bank facility is in the form of a customer foreign currency account overdraft facility (the “CFC Overdraft Facility”). The CFC Overdraft Facility entitles MiX Telematics to utilize a maximum amount of R70,000 (the equivalent of $3,846 as of June 30, 2024). The CFC Overdraft Facility bears interest at the South African prime interest rate less 1.2% per annum. As of June 30, 2024, $554 of the CFC Overdraft Facility was utilized.

There is a suretyship agreement entered into with Standard Bank providing that MiX Telematics and only one subsidiary being MiX Telematics International (Pty) Ltd, binds themselves as surety(ies) and co-principal debtor(s) for the payment, when due, of all the present and future debts of any kind of MiX Telematics and MiX Telematics International to Standard Bank. The Standard Bank facility has no fixed renewal date and is repayable on demand.

RMB Facility

On March 7, 2024, as part of the MiX Combination, MiX Telematics and Powerfleet entered into the Facilities Agreement with RMB. Following the signing of the Facilities Agreement, MiX Telematics entered into a Facility Notice and General Terms and Conditions (the “Credit Agreement”) with RMB on March 14, 2024 for a 364-day committed general banking facility of R350,000 (the equivalent of $19,200 as at June 30, 2024) (the “RMB General Facility”). The Credit Agreement and the rights and obligations of the parties are subject to the terms and conditions of the Facilities Agreement entered into on March 7, 2024, which is described in more detail below.

The RMB General Facility is repayable on demand and has a term of 365 days from the Available Date (as defined therein). Repayment of the RMB General Facility, including capitalized interest, is due by the earlier of (a) the Available Date or (b) April 2, 2025, unless extended by agreement between MiX Telematics and RMB. Interest rate for the RMB General Facility is calculated at South African prime rate minus 0.75% per annum and will be calculated on the daily outstanding balance, compounded monthly in arrears and repaid quarterly. As of June 30, 2024, MiX Telematics had not borrowed anything under the RMB General Facility. The RMB General Facility was utilized in August 2024 to settle the Committed Facility.

Hapoalim Debt

As of June 30, 2024, Pointer Israel had utilized approximately $4,388 under the Hapoalim Revolving Facilities, which are described below.

Long-Term Debt

Hapoalim Debt

In connection with the Pointer acquisition, Powerfleet Israel incurred NIS denominated debt in term loan borrowings on October 3, 2019 under the Prior Credit Agreement, pursuant to which Hapoalim agreed to provide Powerfleet Israel with two

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senior secured term loan facilities in an initial aggregate principal amount of $30,000 (composed of two facilities in the aggregate principal amount of $20,000 and $10,000, respectively and a five-year revolving credit facility to Pointer denominated in NIS in an initial aggregate principal amount of $10,000 (collectively, the “Prior Credit Facilities”). The Prior Credit Facilities were scheduled to mature on October 3, 2024.

On March 18, 2024, the Borrowers entered into the A&R Credit Agreement, which refinanced the facilities under, and amended and restated, the Prior Credit Agreement. The A&R Credit Agreement provides for (i) two senior secured term loan facilities denominated in NIS to Powerfleet Israel in an aggregate principal amount of $30,000 (composed of two facilities in the aggregate principal amounts of $20,000 and $10,000, respectively) (the “Hapoalim Term Facilities”) and (ii) two revolving credit facilities to Pointer in an aggregate principal amount of $20,000 (composed of two revolvers in the aggregate principal amounts of $10,000 and $10,000, respectively) (the “Hapoalim Revolving Facilities” and, together with the Hapoalim Term Facilities, the “Hapoalim Credit Facilities”)). Powerfleet Israel drew down $30,000 in cash under the Hapoalim Term Facilities on March 18, 2024 and used the proceeds to prepay approximately $11,200, representing the remaining outstanding balance, of the term facilities extended to Powerfleet Israel under the Prior Credit Agreement and remaining proceeds will be distributed to Powerfleet. The proceeds of the Hapoalim Revolving Facilities may be used by Pointer for general corporate purposes, including working capital and capital expenditures. As of June 30, 2024, Pointer had utilized $4,388 under the revolving facilities. The available undrawn facility balance at June 30, 2024 was $15,612.

The interest rates for borrowings under Hapoalim Facility A and Hapoalim Facility B are Hapoalim’s prime rate + 2.2% per annum, and Hapoalim’s prime rate + 2.3% per annum, respectively. Hapoalim’s prime rate at June 30, 2024 was 6%. Interest is payable quarterly on March 25, June 25, September 25, and December 25 over five years. The first interest period ended on June 25, 2024. Hapoalim Facility A amortizes in quarterly installments over its five-year term and will be payable in the following aggregate annual amounts: (i) 10% of the principal amount of Hapoalim Facility A from March 18, 2024 until March 18, 2025, (ii) 25% of the principal amount of Hapoalim Facility A from March 18, 2025 until March 18, 2026, (iii) 27.5% of the principal amount of Hapoalim Facility A from March 18, 2026 until March 18, 2027, (iv) 27.5% of the principal amount of Hapoalim Facility A from March 18, 2027 until March 18, 2028, and (v) 10% of the principal amount of Hapoalim Facility A from March 18, 2028 until March 18, 2029. Hapoalim Facility B does not amortize and will be payable in full on March 18, 2029.

The interest rate for borrowings under Hapoalim Facility C is, with respect to NIS-denominated loans, Hapoalim’s prime rate + 2.5%, and with respect to U.S. dollar-denominated loans, SOFR + 2.15%. Borrowings under Hapoalim Facility D will bear interest at the applicable interest rate set forth in the standard form documents entered into in connection with each utilization of Hapoalim Facility D. In addition, Pointer is required to pay a credit allocation fee in NIS, with respect to Hapoalim Facility C, and a non-utilization fee in U.S. dollars, with respect to Hapoalim Facility D, in each case, equal to 0.5% per annum on undrawn and uncancelled amounts of the revolving facilities during the period commencing on March 18, 2024 and ending on the last day of the applicable availability period of such revolving facilities. The Borrowers have also paid certain upfront fees and other fees and expenses to Hapoalim in connection with the A&R Credit Agreement. The Hapoalim Revolving Facilities mature on March 18, 2025.

Borrowings under the Hapoalim Term Facilities are voluntarily prepayable at any time, in whole or in part, and are not subject to any prepayment premium. Voluntary prepayments of the Hapoalim Term Facilities must be made in minimum increments of NIS 1 million. In addition to certain customary mandatory prepayment requirements, the A&R Credit Agreement also requires Powerfleet Israel to make prepayments on the Hapoalim Term Facilities to the extent it receives distributions from Pointer, except for any such distributions made to cover certain expenses of Powerfleet Israel in its normal course of operations.

The A&R Credit Agreement contains certain customary affirmative and negative covenants, including financial covenants with respect to Pointer’s net debt levels which must be less than 100% of Working Capital as defined in the A&R Credit Agreement, the ratio of each Borrower’s net debt to Pointer’s EBITDA must not exceed 4.75, Powerfleet Israel’s minimum equity which must not be less than $60,000, and the ratio of Powerfleet Israel’s equity to its total assets which must be greater than 35% and the ratio of Pointer’s net debt to EBITDA ratio must not exceed 2. The occurrence of any event of default under the A&R Credit Agreement may result in all outstanding indebtedness under the Hapoalim Credit Facilities becoming immediately due and payable. The financial covenants have been met for the quarter ending June 30, 2024.

The Hapoalim Credit Facilities continue to be secured by first ranking and exclusive fixed and floating charges, including by Powerfleet Israel over the entire share capital of Pointer and by Pointer over all of its assets, as well as cross guarantees between Powerfleet Israel and Pointer, except that the Borrowers’ holdings in Pointer do Brasil Comercial Ltda., Pointer Argentina and Pointer South Africa are excluded from such floating charges. No other assets of the Company will serve as collateral under the Hapoalim Credit Facilities.

The Hapoalim Term Facilities under the A&R Credit Agreement have been accounted for as modifications of the term facilities that were provided under the Prior Credit Agreement because the change in the present value of the cash flows under the A&R

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Credit Agreement is less than 10% of the present value of the cash flows under the Prior Credit Agreement. The proceeds of the Hapoalim Term Facilities ($30,000), less the prepayment of the term loans under the Prior Credit Facility (approximately $11,200), amounting to approximately $18,800, has been recognized as an increase in the carrying value of the prior term loans that was recognized previously.

For the three months ended June 30, 2023, the Company recorded $35 of additional deferred costs to the original debt issuance costs and the refinancing fee paid to Hapoalim. For the three months ended June 30, 2024, the Company recorded $30 of amortization of the original debt issuance costs and the refinancing fee paid to Hapoalim. The Company recorded charges of $152 and $655 to interest expense on its consolidated statements of operations for the three months ended June 30, 2023 and 2024, respectively, related to interest expense associated with the Hapoalim debt.

RMB Debt

On March 7, 2024, the Company entered into the Facilities Agreement with RMB, pursuant to which RMB agreed to provide the Company with two term loan facilities in an aggregate principal amount of $85,000, composed of Facility A and Facility B, each with a principal amount of $42,500 (“RMB Facility A” and “RMB Facility B,” respectively, and collectively, the “RMB Facilities”). The Company drew down $85,000 in cash under the term loan facilities on March 13, 2024, and the proceeds to redeem all the outstanding shares of the Series A Preferred Stock and for general corporate purposes. The RMB Facilities are guaranteed by the Company, I.D. Systems and Movingdots, and there is a security agreement over the shares in Main Street 2000 Proprietary Limited, I.D. Systems, and Movingdots.

The interest rates of borrowings under RMB Facility A and RMB Facility B are 8.699% per annum and 8.979% per annum, respectively. Interest is payable quarterly in arrears. RMB Facility A matures on March 31, 2027, and RMB Facility B matures on March 31, 2029. The Company may prepay the RMB Facilities at any time, subject to a minimum reduction of $5,000 and multiples of $1,000. If the Company prepays any amount during the first or second annual period of the funding, a refinancing fee equal to 2% or 1%, respectively, of the prepayment will be payable. Also, the RMB Facilities are mandatorily prepayable upon the occurrence of uncertain future events, such as a change of control or a transfer of the business. In the event that either prepayment occurs, the respective prepayment amount will be adjusted for RMB’s break gains or losses, which relate mainly to the unwinding of interest rate derivatives (the “Prepayment Derivative”) which RMB entered into with third parties to fix the interest rates on the RMB Facilities. Since RMB’s break gains/losses could result in the Company prepaying at a discount, or a premium, of 10% or more to the initial carrying amount of the RMB Facilities, the optional and contingent repayment features were to be embedded derivatives in the scope of ASC 815-15 Embedded Derivatives. The Prepayment Derivative within each RMB Facility has been bifurcated and accounted for at fair value separately from the respective debt-host contracts which are accounted for at amortized cost. The terms of the debt-host contracts have been bifurcated to adjust the carrying value of the debt upon separating the derivative. Upon initial recognition of the RMB Facilities, a Prepayment Derivative asset of $610 and $1,616 for RMB Facility A and RMB Facility B, respectively, was recognized with a corresponding increase in the initial carrying amount of each debt-host contract. The fair value of the embedded derivative is estimated using a “with-and-without” approach as the difference between the value of the RMB Facilities with and without the embedded derivative using both the binomial lattice model and discounted cash flow analysis.

Key assumptions used were:

			Facility A						Facility B
Credit spread volatility			50		%				35		%
Credit spread			4.48		%				4.99		%
Credit rating			B-						B-
Risk free rate			SOFR Spot Rate						SOFR Spot rate

The Prepayment Derivative is classified as a level 3 in the fair value hierarchy due to the use of at least one significant unobservable input which is the credit spread volatility. At inception, the credit spread was an observable input based on the transaction price of the debt; however, in future periods, it will also be an unobservable input. For the Prepayment Derivative asset in RMB Facility A, a change of -10% in credit spread volatility would result in a decrease in the derivative asset of $190, while a change of +10% in credit spread volatility would result in an increase in the derivative asset of $158. For the Prepayment Derivative asset in RMB Facility B, a change of -10% in credit spread volatility would result in a decrease in the derivative asset of $465, while a change of +10% in credit spread volatility would result in an increase in the derivative asset of $416. The Prepayment Derivative assets are included in Other assets and their fair values were $610 and $1,616 for RMB Facility A and RMB Facility B, respectively, as of March 31, 2024 and June 30, 2024. The debt-host contracts are accounted for at amortized cost. Total debt issuance costs of approximately $1,000 were incurred. For the three months ended June 30, 2024, the Company recorded $77 of amortization of the original debt issuance costs and the refinancing fee to RMB.

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For the three-month periods ended March 31, 2024 and June 30, 2024, the Company recorded interest expense of $400 and $1,870, respectively.

Scheduled contractual maturities of the long-term debt as of June 30, 2024 are as follows:

2025 (remaining)						$	1,458
2026						4,859
2027						47,845
2028						5,345
2029						54,162
						113,669
Less: Current portion						(2,597)
Plus debt costs and prepayment						885
Total						$	111,957

Accounts payable and accrued expenses consist of the following (in thousands):

									March 31, 2024						June 30, 2024
Accounts payable									$	20,025					46,104
Accrued warranty									1,138						1,550
Accrued compensation									8,956						13,425
Government authorities									3,062						5,135
Other current liabilities									827						2,557
									$	34,008					$	68,771

The following table summarizes warranty activity for the three months ended June 30, 2023 and 2024 (in thousands):

									Three Months Ended June 30,
									2023						2024
Accrued warranty reserve, beginning of year									$	2,255					2,926
Accrual for product warranties issued									430						247
Product replacements and other warranty expenditures									(110)						(86)
Expiration of warranties									(70)						(9)
Acquired through MiX Combination									—						356
Foreign currency translation difference									—						—
Accrued warranty reserve, end of period (1)									$	2,505					3,434
(1) Includes non-current accrued warranty included in other long-term liabilities at June 30, 2023 and 2024 of $1,739 and $1,884, respectively.

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Convertible Redeemable Preferred Stock:

The Company is authorized to issue 150 shares of preferred stock, par value $0.01 per share of which 100 shares are designated Series A convertible preferred stock (“Series A Preferred Stock”) and 50 shares are undesignated.

Series A Preferred Stock

In connection with the completion of the Pointer acquisition, on October 3, 2019, the Company issued 50 shares of Series A Preferred Stock to ABRY Senior Equity V, L.P., ABRY Senior Equity Co-Investment Fund V, L.P and ABRY Investment Partnership, L.P. (the “Investors”). Concurrently with the closing of the MiX Combination on April 2, 2024, the Company used the net proceeds received from RMB and from incremental borrowing capacity as a result of the refinancing of credit facilities with Hapoalim to redeem in full for $90,300 for all of the outstanding shares of the Series A Preferred Stock.

Dividends

Holders of Series A Preferred Stock were entitled to receive cumulative dividends at a minimum rate of 7.5% per annum (calculated on the basis of the Series A Issue Price), quarterly in arrears. The dividends were payable at the Company’s election, in kind, through the issuance of additional shares of Series A Preferred Stock, or in cash, provided no dividend payment failure had occurred and was continuing and that there had not previously occurred two or more dividend payment failures. Commencing on the 66-month anniversary of the date on which any shares of Series A Preferred Stock were first issued (the “Original Issuance Date”), and on each monthly anniversary thereafter, the dividend rate would increase by 100 basis points, until the dividend rate reached 17.5% per annum, subject to the Company’s right to defer the increase for up to three consecutive months on terms set forth in the Company’s Amended and Restated Certificate of Incorporation (the “Charter”). During the three-month periods ended June 30, 2023 and June 30, 2024, the Company paid dividends in amounts equal to $1,129 and $25 respectively, to the holders of the Series A Preferred Stock. Dividends for the period ended March 31, 2024, plus accrued dividends through April 2, 2024, were paid in cash on the redemption date of the Series A Preferred Stock.

Comprehensive loss includes net loss and foreign currency translation gains and losses.

The accumulated balances for each classification of other comprehensive loss for the three-month period ended June 30, 2024 are as follows (in thousands):

			Foreign currency translation adjustment						Accumulated other comprehensive loss
Balance at April 1, 2024			$	(985)					$	(985)
Net current period change			418						418
Balance at June 30, 2024			$	(567)					$	(567)

The accumulated balances for each classification of other comprehensive loss for the three-month period ended June 30, 2023 are as follows (in thousands):

			Foreign currency translation adjustment						Accumulated other comprehensive loss
Balance at April 1, 2023			$	(1,098)					$	(1,098)
Net current period change			100						100
Balance at June 30, 2023			$	(998)					$	(998)

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The Company operates in one reportable segment, wireless IoT asset management. The following table summarizes revenues by geographic region (in thousands):

			Three Months Ended June 30,
			2023						2024
North America			$	16,765					$	21,392
Israel			10,905						10,661
Africa			863						24,406
Europe and Middle East			599						7,837
Other			2,960						11,134
			$	32,092					$	75,430

			March 31, 2024						June 30, 2024
Long lived assets by geographic region:
North America			$	4,083					$	8,716
Israel			3,946						3,781
Africa			705						29,513
Europe and Middle East			2,850						4,482
Other			1,135						3,213
			$	12,719					$	49,705

The Company records its interim tax provision based upon a projection of the Company’s annual effective tax rate (“AETR”). This AETR is applied to the year-to-date consolidated pre-tax income to determine the interim provision for income taxes before discrete items. The Company updates the AETR on a quarterly basis as the pre-tax income projections are revised and tax laws are enacted. The effective tax rate (“ETR”) each period is impacted by a number of factors, including the relative mix of domestic and foreign earnings and adjustments to recorded valuation allowances. The currently forecasted ETR may vary from the actual year-end due to the changes in these factors.

						Three Months Ended June 30,
						2023						2024
Domestic pre-tax book loss						$	(10,470)					$	(16,475)
Foreign pre-tax book income (expense)						7,201						(4,771)
Total loss before income taxes						(3,269)						(21,246)
Income tax benefit (expense)						6						(1,053)
Total loss after taxes						$	(3,263)					$	(22,299)
Effective tax rate						0.18		%				(4.96)		%

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For the three-month periods ended June 30, 2023 and June 30, 2024, the effective tax rate differed from the statutory tax rates primarily due to the mix of domestic and foreign earnings amongst taxable jurisdictions, recorded valuation allowances to fully reserve against deferred tax assets in jurisdictions, and certain discrete items.

The Company determines whether an arrangement is a lease at inception. The Company has operating leases for office space, office equipment and vehicles. The Company’s leases have remaining lease terms of 1 year to 5 years, some of which include options to extend the lease term for up to 5 years.

Right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term, and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and operating lease liabilities are recognized at the lease commencement date based on the present value of the future lease payments over the lease term. The operating lease ROU asset also includes any lease payments made in advance of lease commencement and excludes lease incentives. The lease terms used in the calculations of the operating ROU assets and operating lease liabilities include options to extend or terminate the lease when the Company is reasonably certain that it will exercise those options. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments.

The Company has lease agreements with lease and non-lease components, which are generally not accounted for separately.

Where lease terms are 12-months or less, and meet the criteria for short-term lease classification, no ROU asset and no lease liability are recognized. Lease costs associated with the short-term leases are included in selling, general and administrative expenses on the Company’s condensed consolidated statements of operations.

The components of lease cost are as follows (in thousands):

												Three Months Ended June 30,
																		2023						2024
Short-term lease cost																		$	119					$	207

Supplemental cash flow information and non-cash activity related to the Company’s operating leases are as follows (in thousands):

						Three Months Ended June 30,
						2023						2024
Non-cash activity:
Right-of-use assets obtained in exchange for lease obligations						$	424					$	490

Weighted-average remaining lease term and discount rate for our operating leases are as follows:

												June 30, 2024
Weighted-average remaining lease term - operating leases (in years) (1)												3.48
Weighted-average discount rate												7.3		%
(1) Including expected renewals where appropriate.

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Scheduled maturities of operating lease liabilities outstanding as of June 30, 2024 are as follows (in thousands):

July 2024 - March 2025						$	3,029
2026						3,498
2027						2,117
2028						1,372
2029						1,179
Thereafter						1,432
Total lease payments						12,627
Less: Imputed interest						(1,631)
Present value of lease payments						$	10,996

The Company’s cash and cash equivalents, restricted cash and investments in securities are carried at fair value. The carrying value of financing receivables approximates fair value due to the interest rate implicit in the instruments approximating current market rates. The carrying value of accounts receivable, accounts payable and accrued liabilities and short-term bank debt approximates their fair values due to the short period to maturity of these instruments. The fair value of the loans to external parties included in other non-current assets is determined using unobservable market data (Level 3 inputs), that represent management’s estimate of current interest rates that a commercial lender would charge the borrowers. The fair value of the Company’s debt is based on observable relevant market information and future cash flows discounted at current rates, which are Level 2 measurements. The Prepayment Derivative within the RMB Facilities is classified as a level 3 in the fair value hierarchy due to the use of at least one significant unobservable input which is the credit spread volatility (see Note 13).

			March 31, 2024												June 30, 2024
			Carrying Amount						Fair Value						Carrying Amount						Fair Value
Loans to external parties			$	475					$	475					$	492					$	492
Debt			$	115,761					$	116,278					$	139,561					$	136,818
Prepayment derivative			$	2,226					$	2,226					$	2,226					$	2,226

For the three-month periods ended June 30, 2023 and 2024, there were no customers that generated revenues greater than 10% of the Company’s consolidated total revenues or generated greater than 10% of the Company’s consolidated accounts receivable.

From time to time, the Company is involved in various litigation matters involving claims incidental to its business and acquisitions, including employment matters, acquisition related claims, patent infringement and contractual matters, among other issues. While the outcome of any such litigation matters cannot be predicted with certainty, management currently believes that the outcome of these proceedings, including the matters described below, either individually or in the aggregate, will not have a material adverse effect on its business, results of operations or financial condition. The Company records reserves related to legal matters when losses related to such litigation or contingencies are both probable and reasonably estimable.

In August 2014, Pointer do Brasil Comercial Ltda. (“Pointer Brazil”) received a notification of lack of payment of VAT tax (Brazilian ICMS tax) in the amount of $189 plus $1,019 of interest and penalty, totaling $1,347 as of March 31, 2024 and $1,208 as of June 30, 2024. The Company is vigorously defending this tax assessment before the administrative court in Brazil,

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but in light of the administrative and judicial processes in Brazil, it could take up to 14 years before the dispute is finally resolved. In case the administrative court rules against the Company, the Company could claim before the judicial court, an appellate court in Brazil, a substantial reduction of interest charged, potentially reducing the Company’s total exposure. The Company’s legal counsel is of the opinion that the chance of loss is not probable and for this reason the Company has not made any provision.

In July 2015, Pointer Brazil received a tax deficiency notice alleging that the services provided by Pointer Brazil should be classified as “telecommunication services” and therefore Pointer Brazil should be subject to the state value-added tax. The aggregate amount claimed to be owed under the notice was approximately $12,110 as of June 30, 2024. On August 14, 2018, the lower chamber of the State Tax Administrative Court in São Paulo rendered a decision that was favorable to Pointer Brazil in relation to the ICMS demands, but adverse in regards to the clerical obligation of keeping in good order a set of ICMS books and related tax receipts. The remaining claim after this administrative decision is $205. The state has appealed to the higher chamber of the State Tax Administrative Court. The Company’s legal counsel is of the opinion that the chance of loss is not probable and that no material costs will arise in respect to these claims. For this reason, the Company has not made any provision.

Mobile Telephone Networks Proprietary Limited (“MTN”), a network service provider of MiX Telematics Africa, a subsidiary of the company, is entitled to claw back payments from MiX Telematics Africa in the event of early cancellation of the agreement or certain base connections not being maintained over the term of an amended network services agreement between the parties or certain base connections not being maintained over the term of such agreement. No connection incentives will be received in terms of the amended network services agreement. The maximum potential liability under the arrangement as of March 31, 2024 and June 30, 2024 was $841 and $808, respectively. No loss is considered probable under this arrangement.

In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” (“ASU 2023-07”), which requires additional operating segment disclosures in annual and interim consolidated financial statements. ASU 2023-07 is effective for annual periods beginning after December 15, 2023 and for interim periods beginning after December 15, 2024 on a retrospective basis, with early adoption permitted. The Company is evaluating the effect of adopting ASU 2023-07.

In December 2023, the FASB issued Accounting Standards Update No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”), which requires disclosure of disaggregated income taxes paid, prescribes standard categories for the components of the effective tax rate reconciliation and modifies other income tax-related disclosures. ASU 2023-09 is effective for annual periods beginning after December 15, 2024 on a retrospective or prospective basis. The Company is evaluating the effect of adopting ASU 2023-09.

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v3.24.2.u1

COVER - shares	3 Months Ended
	Jun. 30, 2024	Aug. 16, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2024
Document Transition Report	false
Entity File Number	001-39080
Entity Registrant Name	POWERFLEET, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	83-4366463
Entity Address, Address Line One	123 Tice Boulevard
Entity Address, City or Town	Woodcliff Lake,
Entity Address, State or Province	NJ
Entity Address, Postal Zip Code	07677
City Area Code	(201)
Local Phone Number	996-9000
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	AIOT
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		107,758,010
Amendment Flag	false
Entity Central Index Key	0001774170
Current Fiscal Year End Date	--03-31
Document Fiscal Year Focus	2025
Document Fiscal Period Focus	Q1

v3.24.2.u1

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2024	Mar. 31, 2024	[1]
Current assets:
Cash and cash equivalents	$ 30,242	$ 24,354
Restricted cash	1,151	85,310
Accounts receivables, net of allowance for credit losses of $3,197 and $3,727 as of March 31, 2024 and June 30, 2024, respectively	60,132	30,333
Inventory, net	25,832	21,658
Deferred costs - current	24	42
Prepaid expenses and other current assets	16,498	8,091
Total current assets	133,879	169,788
Fixed assets, net	49,705	12,719
Goodwill	300,775	83,487
Intangible assets, net	170,093	19,652
Right-of-use asset	10,722	7,428
Severance payable fund	3,760	3,796
Deferred tax asset	3,544	2,781
Other assets	12,435	9,029
Total assets	684,913	308,680
Current liabilities:
Short-term bank debt and current maturities of long-term debt	27,604	1,951
Accounts payable and accrued expenses	68,771	34,008
Deferred revenue - current	10,019	5,842
Lease liability - current	2,441	1,789
Total current liabilities	108,835	43,590
Long-term debt - less current maturities	111,957	113,810
Deferred revenue - less current portion	4,825	4,892
Lease liability - less current portion	8,555	5,921
Accrued severance payable	4,533	4,597
Deferred tax liability	52,645	4,465
Other long-term liabilities	3,015	2,496
Total liabilities	294,365	179,771
Commitments and Contingencies (Note 22)
Convertible redeemable preferred stock: Series A - 100 shares authorized, $0.01 par value; 60 and 0 shares issued and outstanding at March 31, 2024 and June 30, 2024, respectively, at redemption value of $90,273 at March 31, 2024	0	90,273
STOCKHOLDERS’ EQUITY
Preferred stock; authorized 50,000 shares, $0.01 par value	0	0
Common stock; authorized 175,000 shares, $0.01 par value; 38,709 and 109,641 shares issued at March 31, 2024 and June 30, 2024, respectively; shares outstanding, 37,212 and 107,578 at March 31, 2024 and June 30, 2024, respectively	1,096	387
Additional paid-in capital	578,514	202,607
Accumulated deficit	(177,108)	(154,796)
Accumulated other comprehensive loss	(567)	(985)
Treasury stock; 1,497 and 2,063 common shares at cost at March 31, 2024 and June 30, 2024, respectively	(11,518)	(8,682)
Total Powerfleet, Inc. stockholders’ equity	390,417	38,531
Non-controlling interest	131	105
Total equity	390,548	38,636
Total liabilities, convertible redeemable preferred stock, and stockholders’ equity	$ 684,913	$ 308,680
[1] Derived from audited balance sheet as of March 31, 2024.

v3.24.2.u1

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2024	Mar. 31, 2024
Statement of Financial Position [Abstract]
Allowances for doubtful accounts	$ 3,727	$ 3,197
Temporary equity, shares authorized (in shares)	100,000	100,000
Temporary equity, par value (in dollars per share)	$ 0.01	$ 0.01
Temporary equity, shares issued (in shares)	0	60,000
Temporary equity, shares outstanding (in shares)	0	60,000
Preference shares, authorized (in shares)	50,000,000	50,000,000
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	175,000,000	175,000,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares issued (in shares)	109,641,000	38,709,000
Common stock, shares outstanding (in shares)	107,578,000	37,212,000
Treasury stock (in shares)	2,063,000	1,497,000
Accounts payable and accrued expenses	$ 68,771	$ 34,008	[1]
[1] Derived from audited balance sheet as of March 31, 2024.

v3.24.2.u1

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Revenues:
Total revenues	$ 75,430	$ 32,092
Cost of revenues:
Total cost of revenues	35,782	16,074
Gross profit	39,648	16,018
Operating expenses:
Selling, general and administrative expenses	54,782	17,198
Research and development expenses	3,101	2,221
Total operating expenses	57,883	19,419
Loss from operations	(18,235)	(3,401)
Interest income	304	22
Interest expense	(2,691)	(173)
Bargain purchase - Movingdots	0	283
Other income, net	(624)	0
Net loss before income taxes	(21,246)	(3,269)
Income tax benefit/(expense)	(1,053)	6
Net loss before non-controlling interest	(22,299)	(3,263)
Non-controlling interest	(13)	(6)
Net loss	(22,312)	(3,269)
Accretion of preferred stock	0	(1,772)
Preferred stock dividend	(25)	(1,129)
Net loss attributable to common stockholders	(22,337)	(6,170)
Net loss attributable to common stockholders	$ (22,337)	$ (6,170)
Net loss per share attributable to common stockholders - basic (in dollars per share)	$ (0.21)	$ (0.17)
Net loss per share attributable to common stockholders - diluted (in dollars per share)	$ (0.21)	$ (0.17)
Weighted average common shares outstanding - basic (in shares)	107,136	35,605
Weighted average common shares outstanding - diluted (in shares)	107,136	35,605
Products
Revenues:
Total revenues	$ 18,738	$ 11,084
Cost of revenues:
Total cost of revenues	12,751	8,550
Services
Revenues:
Total revenues	56,692	21,008
Cost of revenues:
Total cost of revenues	$ 23,031	$ 7,524

v3.24.2.u1

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Statement of Comprehensive Income [Abstract]
Net loss attributable to common stockholders - basic	$ (22,337)	$ (6,170)
Net loss attributable to common stockholders - diluted	(22,337)	(6,170)
Foreign currency translation adjustment	418	100
Total other comprehensive income	418	100
Comprehensive loss	$ (21,919)	$ (6,070)

v3.24.2.u1

Condensed Consolidated Statement of Changes in Stockholders’ Equity - USD ($) shares in Thousands, $ in Thousands	Total		Common Stock	Additional Paid-In Capital	Accumulated Deficit	Accumulated Other Comprehensive Income/(Loss)	Treasury Stock	Non-Controlling Interest
Beginning balance (in shares) at Mar. 31, 2023			37,621
Beginning balance at Mar. 31, 2023	$ 73,302		$ 376	$ 218,473	$ (135,961)	$ (1,098)	$ (8,554)	$ 66
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss attributable to common stockholders	(6,170)			(2,901)	(3,269)
Net income (loss) attributable to non-controlling interest	6							6
Foreign currency translation adjustment	91					100		(9)
Issuance of restricted shares (in shares)			162
Issuance of restricted shares			$ 1	(1)
Forfeiture of restricted shares (in shares)			(82)
Exercise of stock options (in shares)			16
Exercise of stock options	36			36
Shares issued in connection with MiX Combination	0
Shares withheld pursuant to vesting of restricted stock	(4)						(4)
Stock-based compensation	852			852
Ending balance (in shares) at Jun. 30, 2023			37,717
Ending balance at Jun. 30, 2023	$ 68,112		$ 377	216,458	(139,230)	(998)	(8,558)	63
Beginning balance (in shares) at Mar. 31, 2024	37,212		38,709
Beginning balance at Mar. 31, 2024	$ 38,636	[1]	$ 387	202,607	(154,796)	(985)	(8,682)	105
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss attributable to common stockholders	(22,337)			(25)	(22,312)
Net income (loss) attributable to non-controlling interest	13							13
Foreign currency translation adjustment	426					418		8
Issuance of restricted shares (in shares)			54
Issuance of restricted shares			$ 1	(1)
Shares issued for transaction bonus (in shares)			174
Shares issued for transaction bonus	889		$ 1	888
Shares issued in connection with MiX Combination (in shares)			70,704
Shares issued in connection with MiX Combination	362,005		$ 707	361,298
Acquired through MiX Combination	7,823			7,818				5
Shares withheld pursuant to vesting of restricted stock	(2,836)						(2,836)
Stock-based compensation	$ 5,929			5,929
Ending balance (in shares) at Jun. 30, 2024	107,578		109,641
Ending balance at Jun. 30, 2024	$ 390,548		$ 1,096	$ 578,514	$ (177,108)	$ (567)	$ (11,518)	$ 131
[1] Derived from audited balance sheet as of March 31, 2024.

v3.24.2.u1

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2024		Jun. 30, 2023
Cash flows from operating activities
Net loss	$ (22,312)		$ (3,269)
Adjustments to reconcile net loss to cash used in operating activities:
Non-controlling interest	13		6
Gain on bargain purchase	0		(283)
Inventory reserve	257		373
Stock based compensation expense	5,929		852
Depreciation and amortization	10,335		2,322
Right-of-use assets, non-cash lease expense	760		660
Bad debts expense	1,993		598
Deferred income taxes	1,021		(24)
Shares issued for transaction bonuses	889		0
Other non-cash items	482		27
Changes in operating assets and liabilities:
Accounts receivables	(6,973)		(668)
Inventories	(624)		389
Prepaid expenses and other current assets	(1,518)		344
Deferred costs	(1,789)		185
Deferred revenue	(142)		58
Accounts payable and accrued expenses	4,993		(1,466)
Lease liabilities	(927)		(650)
Accrued severance payable, net	(2)		88
Net cash used in operating activities	(7,615)		(458)
Cash flows from investing activities
Acquisition, net of cash assumed	27,531		0
Capitalized software development costs	(2,308)		(997)
Capital expenditures	(5,586)		(966)
Net cash (used in)/provided by investing activities	19,637		(1,963)
Cash flows from financing activities
Repayment of long-term debt	(493)		(1,329)
Short-term bank debt, net	4,161		2,737
Purchase of treasury stock upon vesting of restricted stock	(2,836)		(4)
Payment of preferred stock dividend and redemption of preferred stock	(90,298)		(1,129)
Proceeds from exercise of stock options, net	0		36
Cash paid on dividends to affiliates	(4)		0
Net cash from/(used in) financing activities	(89,470)		311
Effect of foreign exchange rate changes on cash and cash equivalents	(823)		(941)
Net decrease in cash and cash equivalents, and restricted cash	(78,271)		(3,051)
Cash and cash equivalents, and restricted cash at beginning of the period	109,664		25,089
Reconciliation of cash and cash equivalents, and restricted cash
Cash and cash equivalents	24,354	[1]	24,780
Restricted cash	1,151		309
Cash, cash equivalents, and restricted cash	31,393		22,038
Supplemental disclosure of cash flow information:
Taxes	41		101
Interest	3,057		238
Noncash investing and financing activities:
Common stock issued for transaction bonus	9		0
Shares issued in connection with MiX Combination	$ 362,005		$ 0
[1] Derived from audited balance sheet as of March 31, 2024.

v3.24.2.u1

DESCRIPTION OF THE COMPANY AND BASIS OF PRESENTATION	3 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
DESCRIPTION OF THE COMPANY AND BASIS OF PRESENTATION	DESCRIPTION OF THE COMPANY AND BASIS OF PRESENTATION Description of the Company Powerfleet, Inc. (the “Company” or “Powerfleet”) is a global leader of Internet-of-Things (“IoT”) solutions providing valuable business intelligence for managing high-value enterprise assets that improve operational efficiencies. I.D. Systems, Inc. (“I.D. Systems”) was incorporated in the State of Delaware in 1993. Powerfleet was incorporated in the State of Delaware in February 2019 for the purpose of effectuating the transactions pursuant to which the Company acquired Pointer Telocation Ltd. (“Pointer”) and commenced operations on October 3, 2019. Upon the closing of such transactions, Powerfleet became the parent entity of I.D. Systems and Pointer. On April 2, 2024 (the “Implementation Date”), the Company consummated the transactions contemplated by the Implementation Agreement, dated as of October 10, 2023 (the “Implementation Agreement”), that the Company entered into with Main Street 2000 Proprietary Limited, a private company incorporated in the Republic of South Africa and a wholly owned subsidiary of the Company (“Powerfleet Sub”), and MiX Telematics Limited, a public company incorporated under the laws of the Republic of South Africa (“MiX Telematics”), pursuant to which MiX Telematics became an indirect, wholly owned subsidiary of the Company (the “MiX Combination”). The consolidated financial statements as of and for the three months ended June 30, 2024 include the financial results of MiX Telematics and its subsidiaries from the Implementation Date. See Note 3 for additional information. Basis of Preparation The unaudited interim condensed consolidated financial statements include the accounts of the Company and its wholly owned and majority-owned subsidiaries. All material intercompany balances and transactions have been eliminated in consolidation. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP 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 consolidated financial position of the Company as of March 31, 2024 and June 30, 2024, the consolidated results of its operations for the three-month periods ended June 30, 2023 and 2024, the consolidated change in stockholders’ equity for the three-month periods ended June 30, 2023 and 2024, and the consolidated cash flows for the three-month periods ended June 30, 2023 and 2024. The results of operations for the three-month period ended June 30, 2024 are not necessarily indicative of the operating results for the full year. On May 8, 2024, our Board of Directors approved a change in our fiscal year end from December 31 to March 31 in order to better align our reporting calendar with the April 2, 2024 close of the MiX Combination and MiX Telematics’ historical March 31 fiscal year end. These financial statements should be read in conjunction with the audited consolidated financial statements and related disclosures for the fiscal year ended December 31, 2023 included in the Company’s Annual Report on Form 10-K for the year then ended, and the audited consolidated financial statements and related disclosures for the three-month transition period ended March 31, 2024 included in the Company’s Transition Report on Form 10-KT for the period then ended. Restatement of Previously Issued Consolidated Financial Statements In connection with the preparation of the Company’s audited consolidated financial statements for the year ended December 31, 2023, the Company determined that the accounting for the redemption premium associated with its Series A convertible preferred stock (“Series A Preferred Stock”) was understated resulting in an understatement of “net loss attributable to common stockholders” and “net loss per share attributable to common stockholders” for each period, an understatement of the value of the convertible redeemable preferred stock as of each balance sheet date, and an overstatement of the additional paid-in capital as of each balance sheet date. The required adjustments to correct the redemption value of the calculation of the Series A Preferred Stock and the related accretion of the value of the preferred stock in the consolidated statement of operations included the recording of a non-cash accretion which resulted in an increase in the net loss attributable to common stockholders, an increase in the “convertible redeemable preferred stock”, and a decrease of “additional paid-in capital” for the fiscal years ended December 31, 2021 and 2022 and each of the interim periods during the 2022 and 2023 fiscal years. The correction of the error resulted in reporting the value of the convertible preferred stock including the accretion to the redemption value from the date of original issuance through each balance sheet date applying the interest method. The restatement to non-cash accretion resulted in an increase in the net loss attributable to common stockholders and a decrease in “additional paid-in capital” of $1,604 for the 3 months ended June 30, 2023. The Company had determined that it was appropriate to restate the financial statements for the fiscal years ended December 31, 2021 and 2022 and each of the interim periods during the 2022 and 2023 fiscal years included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 (the “2023 Annual Report”). In addition, the Company also corrected other unrelated immaterial errors that were previously either unrecorded or recorded as out-of-period adjustments. For additional information refer to Note 2 to the financial statements included in the 2023 Annual Report. Going Concern As of June 30, 2024, the Company had cash and cash equivalents of $30,242 and working capital of $25,044. The Company’s primary sources of cash are cash flows from sales of products and services, its holdings of cash, cash equivalents and proceeds from the sale of its capital stock and borrowings under its credit facilities. See Note 13 for additional information on the Company’s available credit facilities. Management believes the Company’s cash, cash equivalents, and restricted cash of $31,393 as of June 30, 2024 in conjunction with cash generated from the execution of its strategic plan over the next 12 months, and proceeds from the debt agreements are sufficient to fund the projected operations for at least the next 12 months from the issuance date of these financial statements (August 28, 2024) and service the Company’s outstanding obligations. Such expectation is based, in part, on the achievement of a certain volume of assumed revenue and gross margin; however, there is no guarantee the Company will achieve this amount of revenue and gross margin during the assumed time period. Management assessed various additional operating cost reduction options that are available to the Company and would be implemented, if assumed levels of revenue and gross margin are not achieved and additional funding is not obtained.

v3.24.2.u1

USE OF ESTIMATES	3 Months Ended
	Jun. 30, 2024
Disclosure Use Of Estimates [Abstract]
USE OF ESTIMATES	USE OF ESTIMATES The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company continually evaluates estimates used in the preparation of the financial statements for reasonableness. The most significant estimates relate to assumptions used in business combinations, allowance for credit losses, income taxes, realization of deferred tax assets, accounting for uncertain tax positions, the impairment of intangible assets, including goodwill and long-lived assets, capitalized software development costs, inventory reserves, standalone selling prices (“SSP”), valuation of the derivative asset, and market-based stock-based compensation costs. Actual results could differ from those estimates.

v3.24.2.u1

ACQUISITION	3 Months Ended
	Jun. 30, 2024
Business Combination and Asset Acquisition [Abstract]
ACQUISITION	ACQUISITION On April 2, 2024, the Company consummated the MiX Combination. On the Implementation Date, Powerfleet Sub acquired all the issued ordinary shares of MiX Telematics (including those represented by MiX Telematics’ American Depositary Shares) through the implementation of a scheme of arrangement in accordance with Sections 114 and 115 of the South African Companies Act, No. 71 of 2008, as amended, in exchange for shares of the Company’s common stock. As a result, MiX Telematics became the Company’s indirect, wholly owned subsidiary. The MiX Combination met the criteria for a business combination to be accounted for using the acquisition method under ASC 805, Business Combinations (“ASC 805”), with the Company identified as the legal and the accounting acquirer. The Company was determined to be the accounting acquirer under Accounting Standards Codification (“ASC”) 805, Business Combinations (“ASC 805”) based on the evaluation of the following facts and circumstances favoring Powerfleet as the accounting acquirer over those supporting MiX Telematics as the accounting acquirer: •The majority of the Board of Directors is comprised by Directors with prior affiliation to the Company. In addition the Company’s Board Chairperson continued in the role post the acquisition date; •Post acquisition the majority of the senior management team, including the Chief Executive Officer, comprised of the Company’s senior management team who were already operating in that capacity for the company prior to the acquisition date; •While the voting rights of 65.5% in favor of MiX Telematics is an indicator that MiX Telematics is the acquirer, the Company believes that the weight of the indicator is tempered given that the negotiated premium paid by Powerfleet to MiX Telematics contributed to the relative ownership split, and that, qualitatively, the significant reduction in the carryover MiX Telematics institutional investor base would have reduced the legacy MiX Telematics shareholders’ ability to control the combined entity, particularly in the light of the significant concentration of institutional investors on the Powerfleet side; and •While no individual or organized group owns a large minority interest in the combined entity, the Company notes that the largest institutional investor post-transaction is an investor of legacy Powerfleet. Additionally, the Company also notes that, immediately following the closing of the Business Combination, 30% out of the approximately 35% of total shares held by shareholders of legacy Powerfleet were concentrated in the Company’s top 20 institutional shareholders, compared to only 9% out of the approximately 65% of total shares held by shareholders of legacy MiX Telematics. The acquisition of MiX Telematics and its business will, among other things: •create a mobile asset IoT SaaS organization with significant scale, serving all mobile asset types. The increased scale is expected to enable the combined entity to more efficiently serve its customers and create advantages to compete in an industry characterized by the need for high pace of development and innovation; •enable the Company to maximize significant cross-sell and upsell opportunities within its large joint customer base due to the joint entity’s combined geographical footprint, deep vertical expertise and expanded software solution sets coupled with its extensive direct and indirect sales channel capabilities; and •enable the combined organization to accelerate the delivery of top-class solutions with improved competitive advantage by integrating Powerfleet’s and MiX Telematics’ world-class engineering and technology teams. The preliminary estimated fair value of the consideration transferred for MiX Telematics was $362.0 million as of the Implementation Date, which consisted of the following: (in thousands, except for share price and exchange ratio) April 2, 2024 Number of MiX Telematics ordinary shares outstanding 554,021  Exchange ratio 0.12762 Shares of Powerfleet common stock to be issued for MiX Telematics ordinary shares outstanding 70,704  Powerfleet stock price* 5.12 Fair value of Powerfleet common stock transferred to MiX Telematics shareholders 362,005  Replacement of acquiree’s equity awards by the acquirer** 7,818  Total fair value of preliminary consideration 369,823  * Powerfleet’s closing share price on April 2, 2024. ** The portion of the fair-value-based measure of the replacement award that is part of the consideration transferred in exchange for the acquiree equals the portion of the acquiree award that is attributable to pre-combination vesting. Preliminary Allocation of Purchase Price The purchase price was allocated to the assets and liabilities assumed based on the estimated fair values at the date of acquisition. The excess of the purchase price over the fair value of the net assets acquired was allocated to goodwill. Goodwill is primarily attributed to the assembled workforce, expected synergies from future expected economic benefits, including enhanced revenue growth from expanded products and capabilities, as well as substantial cost savings from duplicative overheads, streamlined operations and enhanced efficiency. Goodwill is not deductible for tax purposes. Goodwill associated with the acquisition has not yet been assigned to the Company's geographical regions pending finalization of the purchase accounting. The preliminary allocation of purchase price was as follows (in thousands): April 2, 2024 Assets acquired: Cash and cash equivalents $ 26,737  Restricted cash 794  Accounts receivable, net 24,675  Inventory, net 4,142  Prepaid expenses and other current assets 8,886  Fixed assets, net 35,587  Intangible assets, net 153,000  Right-of-use asset 3,794  Deferred tax assets 1,093  Other assets 973  Total assets acquired $ 259,681  Liabilities assumed: Short-term bank debt and current maturities of long-term debt $ 20,158  Accounts payable and accrued expenses 26,400  Deferred revenue - current 6,394  Lease liability - current 859  Income taxes payable 355  Lease liability - less current portion 2,852  Deferred tax liability 48,725  Other long-term liabilities 484  Total liabilities assumed $ 106,227  Total identifiable net assets acquired $ 153,454  Non-controlling interest (5) Goodwill 216,374  Purchase price consideration $ 369,823  The above fair values of assets acquired and liabilities assumed are preliminary and are based on the information that was available as of the reporting date. The Company’s allocation of the preliminary purchase price to certain assets acquired and liabilities assumed is provisional and the Company will continue to adjust those estimates as additional information pertaining to events or circumstances present at April 2, 2024 becomes available and final valuation and analysis are completed. In addition, the Company is still in the process of determining the fair value of acquired assets and assumed liabilities, which may also result in adjustments of the provisional amounts recorded. The fair values of the assets acquired and liabilities assumed, including the identifiable assets acquired, have been preliminarily determined using the income and cost approach, and are partially based on inputs that are unobservable. The Company used discounted cash flow (“DCF”) analyses, which represent Level 3 fair value measurements, to assess certain components of its purchase price allocation as a result of the acquisition. The fair value of the customer relationships was determined using the multi-period excess earnings method. The fair value of the tradename and developed technology was determined using an income approach based on the relief from royalty method. For the fair value estimates, the Company used (i) forecasted future cash flows, (ii) historical and projected financial information, (iii) synergies including cost savings, (iv) revenue growth rates, (v) customer attrition rates, (vi) royalty rates, and (vii) discount rates, as relevant, that market participants would consider when estimating fair values. These estimates require judgment and are subject to change. Differences between the preliminary estimates and final accounting may occur, and those could be material. The Company believes that the information provides a reasonable basis for estimating the fair values of the acquired assets and assumed liabilities, but the potential for measurement period adjustments exists based on the Company’s continuing review of matters related to the acquisition. Adjustments to initial preliminary fair value of the assets acquired and assumed liabilities during the measurement period until April 2, 2025, will be recorded during the period in which the adjustments are determined, including the effect on earnings of any amounts we would have recorded in previous periods if the accounting had been completed (i.e. the historical reported financial statements will not be retrospectively adjusted). The provisional amounts for assets acquired and liabilities assumed include: •The fair value of accounts receivable and other receivables which may be subject to adjustment for reassessment of collectability as of the date of acquisition, collections and other adjustment subsequent to the acquisition; •Property, and equipment, for which the preliminary estimates are subject to revision for finalization of preliminary appraisals; •Right-of-use assets and lease liabilities, which will be subject to adjustment upon completion of the review of the inputs, including sublease assumptions, for the calculations; •Acquired inventory, which values are still being assessed on an individual basis; •Prepaid expenses, accounts payable and accrued expenses, which will be subject to adjustment based upon completion of working capital clean up and assessment of other factors; •The recognition and measurement of contract assets and contract liabilities acquired in accordance with ASC 606 will be subject to adjustment upon completion of assessment; •Acquired intangible assets will be subject to adjustment as additional assets are identified, estimates and forecasts are refined and disaggregated, useful lives are finalized, and other factors deemed relevant are considered; •Deferred income taxes will be subject to adjustment based upon the completion of the review of the book and tax bases of assets acquired and liabilities assumed, applicable tax rates and the impact of the revisions of estimates for the items described above; and •Goodwill will be subject to adjustment for the impact of the revisions of estimates for the items described above. The Company expects to complete the purchase price allocation as soon as practicable, but no later than one year from the acquisition date. Acquired Identifiable Intangible Assets The following table sets forth preliminary estimated fair values of the components of the identifiable intangible assets acquired and their estimated useful lives: (in thousands) Fair value Weighted average useful lives Trade name $ 10,000  14 years Developed technology 30,000  5 years Customer relationships 113,000  13 years $ 153,000  Acquisition-Related Expenses The Company expensed a total of $20,291 of acquisition-related costs in the consolidated statement of operations related to the MiX Combination, of which $14,491 was expensed in the three-month period ended June 30, 2024. Unaudited Pro Forma Financial Information The business acquired in the MiX Combination contributed revenue of $43,689 and a net loss of $6,932, after amortization of identified intangibles, for the three months ended June 30, 2024.

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CASH AND CASH EQUIVALENTS	3 Months Ended
	Jun. 30, 2024
Cash and Cash Equivalents [Abstract]
CASH AND CASH EQUIVALENTS	CASH AND CASH EQUIVALENTS The Company considers all highly liquid debt instruments with an original maturity of three months or less when purchased to be cash equivalents unless they are legally or contractually restricted. The Company’s cash and cash equivalent balances exceed Federal Deposit Insurance Corporation (“FDIC”) and other local jurisdictional limits. Restricted cash at March 31, 2024 consisted of escrow amounts of $85,000 for the Facilities Agreement deposited in escrow for the MiX Combination and cash of $310 held in escrow for purchases from a vendor. Restricted cash at June 30, 2024 consists of cash of $310 held in escrow for purchases from a vendor, cash of $787 held by MiX Telematics Enterprise BEE Trust (a VIE which is consolidated) to be used solely for the benefit of its beneficiaries and cash securing guarantees of $54 issued in respect of property lease agreements entered into by MiX Telematics Australasia.

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REVENUE RECOGNITION	3 Months Ended
	Jun. 30, 2024
Revenue from Contract with Customer [Abstract]
REVENUE RECOGNITION	REVENUE RECOGNITION The Company and its subsidiaries generate revenue from sales of systems and products and from customer SaaS and hosting infrastructure fees. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods or providing services. Sales, value add, and other taxes the Company collects concurrently with revenue-producing activities are excluded from revenue. Incidental items that are immaterial in the context of the contract are recognized as an expense. The expected costs associated with the Company’s base warranties continue to be recognized as an expense when the products are sold (see Note 14). Revenue is recognized when performance obligations under the terms of a contract with the customer are satisfied. Product sales are recognized at a point in time when title transfers, when the products are shipped, or when control of the system is transferred to the customer, which usually is upon delivery of the system and when contractual performance obligations have been satisfied. The Company utilizes significant judgment to determine whether control of the hardware has transferred to the customer (i.e. distinct to the customer separate from SaaS services provided). For products which are not distinct to the customer separate from the SaaS services provided, the Company considers both hardware and SaaS services a bundled performance obligation. Under the applicable accounting guidance, all of the Company’s billings for future services are deferred and classified as a current and long-term liability. The deferred revenue is recognized over the service contract life, ranging from one to five years, beginning at the time that a customer acknowledges acceptance of the equipment and service. Payment terms are generally 30 days after invoice date. The Company recognizes revenue for remotely hosted SaaS agreements and post-contract maintenance and support agreements beyond its standard warranties over the life of the contract. Revenue is recognized ratably over the service periods and the cost of providing these services is expensed as incurred. Amounts invoiced to customers which are not recognized as revenue are classified as deferred revenue and classified as current or long-term based upon the terms of future services to be delivered. Deferred revenue also includes prepayment of extended maintenance, hosting and support contracts. The Company earns other service revenues from installation services, training and technical support services which are short-term in nature and revenue for these services is recognized at the time of performance when the service is provided. The Company also derives revenue from leasing arrangements. Such arrangements provide for monthly payments covering product or system sale, maintenance, support and interest. These arrangements meet the criteria to be accounted for as operating or sales-type leases. Accordingly, for sales-type leases an asset is established for the “sales-type lease receivable” at the present value of the expected lease payments and revenue is deferred and recognized over the service contract, as described above. Maintenance revenues and interest income are recognized monthly over the lease term. The Company’s contracts with customers may include multiple performance obligations. For such arrangements, the Company allocates revenue to each performance obligation based on its relative SSP. Judgment is required to determine the SSP for each distinct performance obligation. The Company generally determines standalone selling prices based on observable prices charged to customers. Significant pricing practices taken into consideration include the Company’s discounting practices, the size and volume of its transactions, the customer demographic, price lists, its go-to-market strategy and historical and current sales and contract prices. As the Company’s go-to-market strategies evolve, it may modify its pricing practices in the future, which could result in changes to SSP. In certain cases, the Company is able to establish SSP based on observable prices of products or services sold separately in comparable circumstances to similar customers. The Company uses a single amount to estimate SSP when it has observable prices. If SSP is not directly observable, for example when pricing is highly variable, the Company uses a range of SSP. The Company determines the SSP range using information that may include pricing practices or other observable inputs. The Company typically has more than one SSP for individual products and services due to the stratification of those products and services by customer size. The Company recognizes an asset for the incremental costs of obtaining the contract arising from the sales commissions to distributors and employees because the Company expects to recover those costs through future fees from the customers. The Company amortizes the asset over one to five years because the asset relates to the services transferred to the customer during the contract term of one to five years. The Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which the Company recognizes revenue at the amount to which the Company has the right to invoice for services performed. The following table presents the Company’s revenues disaggregated by revenue source for the three-months ended June 30, 2023 and 2024 (in thousands): Three Months Ended June 30, 2023 2024 Products $ 11,084  $ 18,738  Services 21,008  56,692  $ 32,092  $ 75,430  The balances of contract assets and contract liabilities from contracts with customers are as follows as of March 31, 2024 and June 30, 2024 (in thousands): March 31, 2024 June 30, 2024 Contract Assets: Deferred contract cost(1) $ 2,632  $ 4,322  Deferred costs - current $ 42  $ 24  Contract Liabilities Deferred revenue – services (2) $ 10,674  $ 14,724  Deferred revenue – products (2) 60  120  10,734  14,844  Less: Deferred revenue – current (5,842) (10,019) Deferred revenue – less current portion $ 4,892  $ 4,825  (1) Deferred Contract costs are included in Other assets on the Condensed Consolidated Balance sheets. (2) The Company records deferred revenues when cash payments are received or due in advance of the Company’s performance. For the three-month periods ended June 30, 2023 and 2024, the Company recognized revenue of $1,766 and $2,986, respectively, which was included in the deferred revenue balance at the beginning of each reporting period. The Company expects to recognize as revenue through year 2029, when it transfers those goods and services and, therefore, satisfies its performance obligation to the customers.

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ALLOWANCE FOR CREDIT LOSSES	3 Months Ended
	Jun. 30, 2024
Receivables [Abstract]
ALLOWANCE FOR CREDIT LOSSES	ALLOWANCE FOR CREDIT LOSSES The Company’s receivables were evaluated to determine an appropriate allowance for credit losses. For trade receivables, the Company’s historical collections were analyzed by the number of days past due to determine the uncollectible rate in each range of days past due and considerations of any changes expected in the future. The estimate of the allowance for credit losses is charged to the allowance for credit losses based on the age of receivables multiplied by the historical uncollectible rate for the range of days past due or earlier if the account is deemed uncollectible for other reasons. Recoveries of amounts previously charged as uncollectible are credited to the allowance for credit losses. An analysis of the allowance for credit losses for the periods ended June 30, 2023 and 2024 is as follows (in thousands): Three Months Ended June 30, 2023 2024 Allowance for credit losses, March 31 $ 2,328  $ 3,197  Current period provision for expected credit losses 598  1,993  Write-offs charged against the allowance (222) (1,509) Foreign currency translation 62  46  Allowance for credit losses, June 30 $ 2,766  $ 3,727

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PREPAID EXPENSES AND OTHER ASSETS	3 Months Ended
	Jun. 30, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
PREPAID EXPENSES AND OTHER ASSETS	PREPAID EXPENSES AND OTHER ASSETS Prepaid expenses and other current assets comprise the following (in thousands): March 31, 2024 June 30, 2024 Sales-type lease receivables, current $ 1,100  $ 1,125  Prepaid expenses* 2,817  5,772  Contract assets 1,162  1,141  Tax receivables 125  790  Vat receivable —  2,059  Sundry debtors —  2,602  Other current assets 2,887  3,009  $ 8,091  $ 16,498  *This represents the prepaid portion of total deferred contract assets

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INVENTORY	3 Months Ended
	Jun. 30, 2024
Inventory Disclosure [Abstract]
INVENTORY	INVENTORY Inventory, which primarily consists of finished goods and components used in the Company’s products, is stated at the lower of cost or net realizable value using the “moving average” cost method or the first-in first-out (FIFO) method. Inventory is shown net of a valuation reserve of $538 at March 31, 2024 and $97 at June 30, 2024. Inventories consist of the following (in thousands): March 31, 2024 June 30, 2024 Components $ 9,403  $ 9,195  Work in process 49  1,788  Finished goods, net 12,206  14,849  $ 21,658  $ 25,832

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FIXED ASSETS	3 Months Ended
	Jun. 30, 2024
Property, Plant and Equipment [Abstract]
FIXED ASSETS	FIXED ASSETS Fixed assets are stated at cost, less accumulated depreciation and amortization, and are summarized as follows (in thousands): March 31, 2024 June 30, 2024 Installed and uninstalled products $ 11,030  $ 46,129  Computer software 11,496  12,231  Computer and electronic equipment 6,179  7,126  Furniture and fixtures 2,361  3,733  Leasehold improvements 1,498  1,445  Plant and equipment —  293  Assets in progress —  19  32,564  70,976  Accumulated depreciation and amortization (19,845) (21,271) $ 12,719  $ 49,705  Depreciation and amortization expense for the three-month periods ended June 30, 2023 and 2024 was $967 and $4,749, respectively.

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INTANGIBLE ASSETS AND GOODWILL	3 Months Ended
	Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
INTANGIBLE ASSETS AND GOODWILL	INTANGIBLE ASSETS AND GOODWILL The Company capitalizes costs for software to be sold, marketed, or leased to customers. Costs incurred internally in researching and developing software products are charged to expense until technological feasibility has been established for the product. Once technological feasibility is established, software costs are capitalized until the product is available for general release to customers. Judgment is required in determining when technological feasibility of a product is established. The amortization of these costs is included in cost of revenue over the estimated life of the products. The following table summarizes identifiable intangible assets of the Company as of March 31, 2024 and June 30, 2024 (in thousands): June 30, 2024 Useful Lives (In Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortized: Customer relationships 1 - 13 $ 132,264  $ (10,834) $ 121,430  Trademark and tradename 3 - 15 17,553  (4,253) 13,300  Patents 7 - 11 628  (486) 142  Technology 1 - 20 44,561  (14,236) 30,325  Software to be sold or leased 3 - 6 5,727  (996) 4,731  200,733  (30,805) 169,928  Unamortized Customer list 104  —  104  Trademark and tradename 61  —  61  165  —  165  Total $ 200,898  $ (30,805) $ 170,093  March 31, 2024 Useful Lives (In Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortized: Customer relationships 9 - 12 $ 19,264  $ (8,012) $ 11,252  Trademark and tradename 3 - 15 7,553  (3,877) 3,676  Patents 7 - 11 628  (464) 164  Technology  7 10,911  (10,911) —  Software to be sold or leased 3 5,159  (764) 4,395  43,515  (24,028) 19,487  Unamortized Customer list 104  —  104  Trademark and tradename 61  —  61  165  —  165  Total $ 43,680  $ (24,028) $ 19,652  At June 30, 2024, the weighted-average amortization periods for customer relationships, trademarks and trade names, patents, technology, and capitalized software to be sold or leased were 12.7, 12.1, 7, 11.6, and 3.0 years, respectively. For the three months ended June 30, 2023 and 2024, amortization expense of $1,356 and $5,586 respectively was recognized in both periods. Estimated future amortization expense for each of the five succeeding fiscal years for these intangible assets is as follows: 2025 (remaining) $ 15,528  2026 22,138  2027 21,145  2028 18,067  2029 14,578  Thereafter 78,472  $ 169,928  Refer to Note 3 for the change in the carrying amount of goodwill from April 1, 2024 to June 30, 2024 as a result of the MiX Combination. For the three-month period ended June 30, 2024, the Company did not identify any indicators of impairment.

v3.24.2.u1

STOCK-BASED COMPENSATION	3 Months Ended
	Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]
STOCK-BASED COMPENSATION	STOCK-BASED COMPENSATION During the three-month period ended June 30, 2024, the Company granted options to purchase 375 shares of common stock with time-based vesting conditions. [A] Stock Options: The following table summarizes the activity relating to the Company’s market-based stock options for the three-month period ended June 30, 2024: Options Weighted- Average Exercise Price Weighted Average Contractual Remaining Term (years) Aggregate Intrinsic Values (in thousands)* Outstanding as of April 1, 2024 5,445  13.39  —  —  Granted —  —  —  —  Exercised —  —  —  —  Forfeited —  —  —  —  Outstanding as of June 30, 2024 5,445  13.39 7.72 $ 1,488  Vested as of June 30, 2024 —  —  —  $ —  The following table summarizes the activity relating to the Company’s stock options, excluding the market-based stock options, for the three-month period ended June 30, 2024: Options Weighted- Average Exercise Price Weighted Average Contractual Remaining Term (years) Aggregate Intrinsic Values (in thousands)* Outstanding as of April 1, 2024 1,979  4.68  —  —  Granted 375  4.31  —  —  Exercised —  —  —  —  Forfeited (6) 6.10  —  —  Outstanding as of June 30, 2024 2,348  4.62 7.2 $ 779  Vested as of June 30, 2024 1,973  4.67  6.6 $ 779  The fair value of each option grant on the date of grant is estimated using the Black-Scholes option-pricing model reflecting the following weighted-average assumptions: June 30, 2023 June 30, 2024 Expected volatility 55.6  % 60.2  % Expected life of options 6.1 6.5 Risk free interest rate 3.87  % 4.23  % Dividend yield —  —  Weighted-average fair value of options granted during the year $1.66 $2.66 Expected volatility is based on historical volatility of the Company’s common stock and the expected life of options is based on historical data with respect to employee exercise periods. The Company recorded stock-based compensation expense of $585 and $1,817 for the three-month periods ended June 30, 2023 and June 30, 2024, respectively, in connection with awards made under the stock option plans. The increase in the recognized expense is due to the approved acceleration of vesting of unvested restricted stock and stock option awards with time-based vesting conditions that are outstanding under the Powerfleet equity plans (including any inducement awards with time-based vesting). The accelerated vesting of the Company’s equity awards is not part of what was acquired in the MiX Combination, nor what was paid for in the MiX Combination because it was for the benefit of the Company’s employees rather than for the benefit of MiX Telematics employees. Therefore, the acceleration of the equity awards was treated as a separate transaction from the MiX Combination and the acceleration of vesting was accounted for immediately upon closing of the MiX Combination on April 2, 2024. The fair value of options vested during the three-month periods ended June 30, 2023 and 2024 was $562 and $1,457, respectively. There were no option exercises that occurred during the three-month periods ended June 30, 2023 and 2024. As of June 30, 2024, there was $983 of total unrecognized compensation costs related to non-vested options granted under the Company’s stock option plans excluding the market-based stock options that were granted to certain senior managers, including the Company’s executive officers. That cost is expected to be recognized over a weighted-average period of 1.34 years. As of June 30, 2024, there was $3,597 of total unrecognized compensation costs related to non-vested options granted under the Company’s stock option plans for the market-based stock options that were granted to certain senior managers, including the Company’s executive officers. That cost is expected to be recognized over a weighted-average period of 7.72 years. The Company estimates forfeitures at the time of valuation and reduces expenses ratably over the vesting period. This estimate is adjusted periodically based on the extent to which actual forfeitures differ, or are expected to differ, from the previous estimate. [B] Restricted Stock Awards: The Company grants restricted stock to employees, whereby the employees are contractually restricted from transferring the shares until they are vested. The stock is unvested at the time of grant, and, upon vesting, there are no legal restrictions on the stock. Some participants have the option to have their shares withheld for their taxes upon vesting. Shares withheld for taxes are treated as a purchase of treasury stock. The fair value of each share is based on the Company’s closing stock price on the date of the grant. A summary of all non-vested restricted stock for the three-month period ended June 30, 2024 is as follows: Number of Non-Vested Shares Weighted- Average Grant Date Fair Value Non-vested, March 31, 2024 1,370  2.68  Granted 54  5.45  Vested (1,369) 2.68  Forfeited or expired —  —  Non-vested, June 30, 2024 55  2.68  The Company recorded stock-based compensation expenses of $267 and $3,095 for the three-month periods ended June 30, 2023 and 2024, respectively, in connection with restricted stock grants. As of June 30, 2024, there was $258 of total unrecognized compensation cost related to non-vested shares. That cost is expected to be recognized over a weighted-average period of 0.88 years. The increase in the recognized expense is due to the approved acceleration of vesting of unvested restricted stock and stock option awards with time-based vesting conditions that are outstanding under the Powerfleet equity plans (including any inducement awards with time-based vesting). The accelerated vesting of the Company’s equity awards is not part of what was acquired in the MiX Combination, nor what was paid for in the MiX Combination because it was for the benefit of the Company’s employees rather than for the benefit of MiX Telematics employees. Therefore, the acceleration of the equity awards was treated as a separate transaction from the MiX Combination and the acceleration of vesting was accounted for immediately upon closing of the MiX Combination on April 2, 2024. [C] Stock Appreciation Rights: In connection with the closing of the MiX Combination, the Company assumed each of the MiX Telematics’ share plans. MiX Telematics issued equity-classified share incentives under the MiX Telematics Long-Term Incentive Plan (“LTIP”) to directors and certain key employees within the Company. The LTIP provides for three types of grants to be issued, namely performance shares, restricted share units and stock appreciation rights (“SARs”). On the Implementation Date,the only issued and outstanding equity awards under the LTIP were SARs, and the Company assumed the outstanding SARs in issue. No additional performance shares or restricted share units will be issued or assumed by the Company. The replacement of MiX Telematics’ share-based payment awards has been treated as a modification under ASC 718, Compensation—Stock Compensation as of the Implementation Date. The fair value of the replacement SARs issued was allocated between pre-combination and post-combination service based on the vesting period. The fair value related to pre-combination service is included as part of the fair value of the consideration in the MiX Combination (see Note 3), and the fair value related to post-combination service is to be recognized as an expense over the remaining vesting period. The total stock-based compensation expense recognized during the three months ended June 30, 2024 was $1.0 million. The following table summarizes the activities for the outstanding SARs: Number of SARs Weighted- Average Exercise Price Weighted Average Contractual Remaining Term (years) Aggregate Intrinsic Values (in thousands)* Outstanding as of April 1, 2024 —  —  Acquired through MiX Combination 5,740  2.61  Granted —  —  Exercised —  —  Forfeited —  —  Outstanding as of June 30, 2024 5,740  2.61 3.33 Vested as of June 30, 2024 1,813  2.98  1.80 $ 2,881  As of June 30, 2024, there was $7.5 million of unrecognized compensation cost related to unvested SARs. This amount is expected to be recognized over a weighted-average period of 3.26 years.

v3.24.2.u1

NET LOSS PER SHARE	3 Months Ended
	Jun. 30, 2024
Earnings Per Share [Abstract]
NET LOSS PER SHARE	NET LOSS PER SHARE Net loss per share for the three-month periods ended June 30, 2023 and 2024 are as follows: Three Months Ended June 30, 2023 2024 Basic and diluted loss per share Net loss attributable to common stockholders $ (6,170) $ (22,337) Net loss per share attributable to common stockholders - basic and diluted $ (0.17) $ (0.21) Weighted-average common share outstanding - basic and diluted 35,605  107,136  Basic loss per share is calculated by dividing net loss attributable to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted loss per share reflects the potential dilution assuming common shares were issued upon the exercise of outstanding options and the proceeds thereof were used to purchase outstanding common shares. Dilutive potential common shares include outstanding stock options, warrants and restricted stock and performance share awards. We include participating securities (unvested share-based payment awards and equivalents that contain non-forfeitable rights to dividends or dividend equivalents) in the computation of earnings per share pursuant to the two-class method. The Company’s participating securities consist solely of preferred stock, which have contractual participation rights equivalent to those of stockholders of unrestricted common stock. The two-class method of computing earnings per share is an allocation method that calculates earnings per share for common stock and participating securities. During periods of net loss, no effect is given to the participating securities because they do not share in the losses of the Company.

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SHORT-TERM BANK DEBT AND LONG-TERM DEBT	3 Months Ended
	Jun. 30, 2024
Debt Disclosure [Abstract]
SHORT-TERM BANK DEBT AND LONG-TERM DEBT	SHORT-TERM BANK DEBT AND LONG-TERM DEBT March 31, 2024 June 30, 2024 Short-term bank debt $ —  $ 25,007  Current maturities of long-term debt $ 1,951  $ 2,597  Long-term debt - less current maturities $ 113,810  $ 111,957  Short-Term Bank Debt As of June 30, 2024 short-term debt comprised $24,323 of borrowing facilities and $684 of book overdrafts. Investec Facility The Investec Bank Limited (“Investec”) credit facility was a 364-day renewable committed general credit facility of R350,000 (the equivalent of $19,232 as of June 30, 2024) (the “Committed Facility”). As of June 30, 2024, $19,232 of the Committed Facility was utilized. The Committed Facility was settled in August 2024 and closed. Under the Committed Facility, MiX Telematics paid a commitment fee charged at 30bps on any undrawn portion of the Committed Facility (plus VAT on such amount), calculated monthly and payable, free of deduction, monthly in arrears on the first business day of each month. The loans under the Committed Facility bore interest at South African prime interest rate less 1.5% per annum. As of June 30, 2024, the South African prime interest rate was 11.75%. Interest was payable monthly in arrears on the first business day of each month, or as otherwise specified in the credit agreement between Investec and MiX Telematics. MiX Telematics Africa (Pty) Ltd, MiX Telematics International (Pty) Ltd and MiX Telematics Enterprise SA (Pty) Ltd issued guarantees in favor of Investec in terms of which they guaranteed the performance by MiX Telematics of all its obligations to Investec. Standard Bank Facility The Standard Bank facility is in the form of a customer foreign currency account overdraft facility (the “CFC Overdraft Facility”). The CFC Overdraft Facility entitles MiX Telematics to utilize a maximum amount of R70,000 (the equivalent of $3,846 as of June 30, 2024). The CFC Overdraft Facility bears interest at the South African prime interest rate less 1.2% per annum. As of June 30, 2024, $554 of the CFC Overdraft Facility was utilized. There is a suretyship agreement entered into with Standard Bank providing that MiX Telematics and only one subsidiary being MiX Telematics International (Pty) Ltd, binds themselves as surety(ies) and co-principal debtor(s) for the payment, when due, of all the present and future debts of any kind of MiX Telematics and MiX Telematics International to Standard Bank. The Standard Bank facility has no fixed renewal date and is repayable on demand. RMB Facility On March 7, 2024, as part of the MiX Combination, MiX Telematics and Powerfleet entered into the Facilities Agreement with RMB. Following the signing of the Facilities Agreement, MiX Telematics entered into a Facility Notice and General Terms and Conditions (the “Credit Agreement”) with RMB on March 14, 2024 for a 364-day committed general banking facility of R350,000 (the equivalent of $19,200 as at June 30, 2024) (the “RMB General Facility”). The Credit Agreement and the rights and obligations of the parties are subject to the terms and conditions of the Facilities Agreement entered into on March 7, 2024, which is described in more detail below. The RMB General Facility is repayable on demand and has a term of 365 days from the Available Date (as defined therein). Repayment of the RMB General Facility, including capitalized interest, is due by the earlier of (a) the Available Date or (b) April 2, 2025, unless extended by agreement between MiX Telematics and RMB. Interest rate for the RMB General Facility is calculated at South African prime rate minus 0.75% per annum and will be calculated on the daily outstanding balance, compounded monthly in arrears and repaid quarterly. As of June 30, 2024, MiX Telematics had not borrowed anything under the RMB General Facility. The RMB General Facility was utilized in August 2024 to settle the Committed Facility. Hapoalim Debt As of June 30, 2024, Pointer Israel had utilized approximately $4,388 under the Hapoalim Revolving Facilities, which are described below. Long-Term Debt Hapoalim Debt In connection with the Pointer acquisition, Powerfleet Israel incurred NIS denominated debt in term loan borrowings on October 3, 2019 under the Prior Credit Agreement, pursuant to which Hapoalim agreed to provide Powerfleet Israel with two senior secured term loan facilities in an initial aggregate principal amount of $30,000 (composed of two facilities in the aggregate principal amount of $20,000 and $10,000, respectively and a five-year revolving credit facility to Pointer denominated in NIS in an initial aggregate principal amount of $10,000 (collectively, the “Prior Credit Facilities”). The Prior Credit Facilities were scheduled to mature on October 3, 2024. On March 18, 2024, the Borrowers entered into the A&R Credit Agreement, which refinanced the facilities under, and amended and restated, the Prior Credit Agreement. The A&R Credit Agreement provides for (i) two senior secured term loan facilities denominated in NIS to Powerfleet Israel in an aggregate principal amount of $30,000 (composed of two facilities in the aggregate principal amounts of $20,000 and $10,000, respectively) (the “Hapoalim Term Facilities”) and (ii) two revolving credit facilities to Pointer in an aggregate principal amount of $20,000 (composed of two revolvers in the aggregate principal amounts of $10,000 and $10,000, respectively) (the “Hapoalim Revolving Facilities” and, together with the Hapoalim Term Facilities, the “Hapoalim Credit Facilities”)). Powerfleet Israel drew down $30,000 in cash under the Hapoalim Term Facilities on March 18, 2024 and used the proceeds to prepay approximately $11,200, representing the remaining outstanding balance, of the term facilities extended to Powerfleet Israel under the Prior Credit Agreement and remaining proceeds will be distributed to Powerfleet. The proceeds of the Hapoalim Revolving Facilities may be used by Pointer for general corporate purposes, including working capital and capital expenditures. As of June 30, 2024, Pointer had utilized $4,388 under the revolving facilities. The available undrawn facility balance at June 30, 2024 was $15,612. The interest rates for borrowings under Hapoalim Facility A and Hapoalim Facility B are Hapoalim’s prime rate + 2.2% per annum, and Hapoalim’s prime rate + 2.3% per annum, respectively. Hapoalim’s prime rate at June 30, 2024 was 6%. Interest is payable quarterly on March 25, June 25, September 25, and December 25 over five years. The first interest period ended on June 25, 2024. Hapoalim Facility A amortizes in quarterly installments over its five-year term and will be payable in the following aggregate annual amounts: (i) 10% of the principal amount of Hapoalim Facility A from March 18, 2024 until March 18, 2025, (ii) 25% of the principal amount of Hapoalim Facility A from March 18, 2025 until March 18, 2026, (iii) 27.5% of the principal amount of Hapoalim Facility A from March 18, 2026 until March 18, 2027, (iv) 27.5% of the principal amount of Hapoalim Facility A from March 18, 2027 until March 18, 2028, and (v) 10% of the principal amount of Hapoalim Facility A from March 18, 2028 until March 18, 2029. Hapoalim Facility B does not amortize and will be payable in full on March 18, 2029. The interest rate for borrowings under Hapoalim Facility C is, with respect to NIS-denominated loans, Hapoalim’s prime rate + 2.5%, and with respect to U.S. dollar-denominated loans, SOFR + 2.15%. Borrowings under Hapoalim Facility D will bear interest at the applicable interest rate set forth in the standard form documents entered into in connection with each utilization of Hapoalim Facility D. In addition, Pointer is required to pay a credit allocation fee in NIS, with respect to Hapoalim Facility C, and a non-utilization fee in U.S. dollars, with respect to Hapoalim Facility D, in each case, equal to 0.5% per annum on undrawn and uncancelled amounts of the revolving facilities during the period commencing on March 18, 2024 and ending on the last day of the applicable availability period of such revolving facilities. The Borrowers have also paid certain upfront fees and other fees and expenses to Hapoalim in connection with the A&R Credit Agreement. The Hapoalim Revolving Facilities mature on March 18, 2025. Borrowings under the Hapoalim Term Facilities are voluntarily prepayable at any time, in whole or in part, and are not subject to any prepayment premium. Voluntary prepayments of the Hapoalim Term Facilities must be made in minimum increments of NIS 1 million. In addition to certain customary mandatory prepayment requirements, the A&R Credit Agreement also requires Powerfleet Israel to make prepayments on the Hapoalim Term Facilities to the extent it receives distributions from Pointer, except for any such distributions made to cover certain expenses of Powerfleet Israel in its normal course of operations. The A&R Credit Agreement contains certain customary affirmative and negative covenants, including financial covenants with respect to Pointer’s net debt levels which must be less than 100% of Working Capital as defined in the A&R Credit Agreement, the ratio of each Borrower’s net debt to Pointer’s EBITDA must not exceed 4.75, Powerfleet Israel’s minimum equity which must not be less than $60,000, and the ratio of Powerfleet Israel’s equity to its total assets which must be greater than 35% and the ratio of Pointer’s net debt to EBITDA ratio must not exceed 2. The occurrence of any event of default under the A&R Credit Agreement may result in all outstanding indebtedness under the Hapoalim Credit Facilities becoming immediately due and payable. The financial covenants have been met for the quarter ending June 30, 2024. The Hapoalim Credit Facilities continue to be secured by first ranking and exclusive fixed and floating charges, including by Powerfleet Israel over the entire share capital of Pointer and by Pointer over all of its assets, as well as cross guarantees between Powerfleet Israel and Pointer, except that the Borrowers’ holdings in Pointer do Brasil Comercial Ltda., Pointer Argentina and Pointer South Africa are excluded from such floating charges. No other assets of the Company will serve as collateral under the Hapoalim Credit Facilities. The Hapoalim Term Facilities under the A&R Credit Agreement have been accounted for as modifications of the term facilities that were provided under the Prior Credit Agreement because the change in the present value of the cash flows under the A&R Credit Agreement is less than 10% of the present value of the cash flows under the Prior Credit Agreement. The proceeds of the Hapoalim Term Facilities ($30,000), less the prepayment of the term loans under the Prior Credit Facility (approximately $11,200), amounting to approximately $18,800, has been recognized as an increase in the carrying value of the prior term loans that was recognized previously. For the three months ended June 30, 2023, the Company recorded $35 of additional deferred costs to the original debt issuance costs and the refinancing fee paid to Hapoalim. For the three months ended June 30, 2024, the Company recorded $30 of amortization of the original debt issuance costs and the refinancing fee paid to Hapoalim. The Company recorded charges of $152 and $655 to interest expense on its consolidated statements of operations for the three months ended June 30, 2023 and 2024, respectively, related to interest expense associated with the Hapoalim debt. RMB Debt On March 7, 2024, the Company entered into the Facilities Agreement with RMB, pursuant to which RMB agreed to provide the Company with two term loan facilities in an aggregate principal amount of $85,000, composed of Facility A and Facility B, each with a principal amount of $42,500 (“RMB Facility A” and “RMB Facility B,” respectively, and collectively, the “RMB Facilities”). The Company drew down $85,000 in cash under the term loan facilities on March 13, 2024, and the proceeds to redeem all the outstanding shares of the Series A Preferred Stock and for general corporate purposes. The RMB Facilities are guaranteed by the Company, I.D. Systems and Movingdots, and there is a security agreement over the shares in Main Street 2000 Proprietary Limited, I.D. Systems, and Movingdots. The interest rates of borrowings under RMB Facility A and RMB Facility B are 8.699% per annum and 8.979% per annum, respectively. Interest is payable quarterly in arrears. RMB Facility A matures on March 31, 2027, and RMB Facility B matures on March 31, 2029. The Company may prepay the RMB Facilities at any time, subject to a minimum reduction of $5,000 and multiples of $1,000. If the Company prepays any amount during the first or second annual period of the funding, a refinancing fee equal to 2% or 1%, respectively, of the prepayment will be payable. Also, the RMB Facilities are mandatorily prepayable upon the occurrence of uncertain future events, such as a change of control or a transfer of the business. In the event that either prepayment occurs, the respective prepayment amount will be adjusted for RMB’s break gains or losses, which relate mainly to the unwinding of interest rate derivatives (the “Prepayment Derivative”) which RMB entered into with third parties to fix the interest rates on the RMB Facilities. Since RMB’s break gains/losses could result in the Company prepaying at a discount, or a premium, of 10% or more to the initial carrying amount of the RMB Facilities, the optional and contingent repayment features were to be embedded derivatives in the scope of ASC 815-15 Embedded Derivatives. The Prepayment Derivative within each RMB Facility has been bifurcated and accounted for at fair value separately from the respective debt-host contracts which are accounted for at amortized cost. The terms of the debt-host contracts have been bifurcated to adjust the carrying value of the debt upon separating the derivative. Upon initial recognition of the RMB Facilities, a Prepayment Derivative asset of $610 and $1,616 for RMB Facility A and RMB Facility B, respectively, was recognized with a corresponding increase in the initial carrying amount of each debt-host contract. The fair value of the embedded derivative is estimated using a “with-and-without” approach as the difference between the value of the RMB Facilities with and without the embedded derivative using both the binomial lattice model and discounted cash flow analysis. Key assumptions used were: Facility A Facility B Credit spread volatility 50  % 35  % Credit spread 4.48  % 4.99  % Credit rating B- B- Risk free rate SOFR Spot Rate SOFR Spot rate The Prepayment Derivative is classified as a level 3 in the fair value hierarchy due to the use of at least one significant unobservable input which is the credit spread volatility. At inception, the credit spread was an observable input based on the transaction price of the debt; however, in future periods, it will also be an unobservable input. For the Prepayment Derivative asset in RMB Facility A, a change of -10% in credit spread volatility would result in a decrease in the derivative asset of $190, while a change of +10% in credit spread volatility would result in an increase in the derivative asset of $158. For the Prepayment Derivative asset in RMB Facility B, a change of -10% in credit spread volatility would result in a decrease in the derivative asset of $465, while a change of +10% in credit spread volatility would result in an increase in the derivative asset of $416. The Prepayment Derivative assets are included in Other assets and their fair values were $610 and $1,616 for RMB Facility A and RMB Facility B, respectively, as of March 31, 2024 and June 30, 2024. The debt-host contracts are accounted for at amortized cost. Total debt issuance costs of approximately $1,000 were incurred. For the three months ended June 30, 2024, the Company recorded $77 of amortization of the original debt issuance costs and the refinancing fee to RMB. For the three-month periods ended March 31, 2024 and June 30, 2024, the Company recorded interest expense of $400 and $1,870, respectively. Scheduled contractual maturities of the long-term debt as of June 30, 2024 are as follows: 2025 (remaining) $ 1,458  2026 4,859  2027 47,845  2028 5,345  2029 54,162  113,669  Less: Current portion (2,597) Plus debt costs and prepayment 885  Total $ 111,957

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ACCOUNTS PAYABLE AND ACCRUED EXPENSES	3 Months Ended
	Jun. 30, 2024
Payables and Accruals [Abstract]
ACCOUNTS PAYABLE AND ACCRUED EXPENSES	ACCOUNTS PAYABLE AND ACCRUED EXPENSES Accounts payable and accrued expenses consist of the following (in thousands): March 31, 2024 June 30, 2024 Accounts payable $ 20,025  46,104  Accrued warranty 1,138  1,550  Accrued compensation 8,956  13,425  Government authorities 3,062  5,135  Other current liabilities 827  2,557  $ 34,008  $ 68,771  The following table summarizes warranty activity for the three months ended June 30, 2023 and 2024 (in thousands): Three Months Ended June 30, 2023 2024 Accrued warranty reserve, beginning of year $ 2,255  2,926  Accrual for product warranties issued 430  247  Product replacements and other warranty expenditures (110) (86) Expiration of warranties (70) (9) Acquired through MiX Combination —  356  Foreign currency translation difference —  —  Accrued warranty reserve, end of period (1) $ 2,505  3,434  (1) Includes non-current accrued warranty included in other long-term liabilities at June 30, 2023 and 2024 of $1,739 and $1,884, respectively.

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STOCKHOLDERS' EQUITY	3 Months Ended
	Jun. 30, 2024
Equity [Abstract]
STOCKHOLDERS' EQUITY	STOCKHOLDERS' EQUITY Convertible Redeemable Preferred Stock: The Company is authorized to issue 150 shares of preferred stock, par value $0.01 per share of which 100 shares are designated Series A convertible preferred stock (“Series A Preferred Stock”) and 50 shares are undesignated. Series A Preferred Stock In connection with the completion of the Pointer acquisition, on October 3, 2019, the Company issued 50 shares of Series A Preferred Stock to ABRY Senior Equity V, L.P., ABRY Senior Equity Co-Investment Fund V, L.P and ABRY Investment Partnership, L.P. (the “Investors”). Concurrently with the closing of the MiX Combination on April 2, 2024, the Company used the net proceeds received from RMB and from incremental borrowing capacity as a result of the refinancing of credit facilities with Hapoalim to redeem in full for $90,300 for all of the outstanding shares of the Series A Preferred Stock. Dividends Holders of Series A Preferred Stock were entitled to receive cumulative dividends at a minimum rate of 7.5% per annum (calculated on the basis of the Series A Issue Price), quarterly in arrears. The dividends were payable at the Company’s election, in kind, through the issuance of additional shares of Series A Preferred Stock, or in cash, provided no dividend payment failure had occurred and was continuing and that there had not previously occurred two or more dividend payment failures. Commencing on the 66-month anniversary of the date on which any shares of Series A Preferred Stock were first issued (the “Original Issuance Date”), and on each monthly anniversary thereafter, the dividend rate would increase by 100 basis points, until the dividend rate reached 17.5% per annum, subject to the Company’s right to defer the increase for up to three consecutive months on terms set forth in the Company’s Amended and Restated Certificate of Incorporation (the “Charter”). During the three-month periods ended June 30, 2023 and June 30, 2024, the Company paid dividends in amounts equal to $1,129 and $25 respectively, to the holders of the Series A Preferred Stock. Dividends for the period ended March 31, 2024, plus accrued dividends through April 2, 2024, were paid in cash on the redemption date of the Series A Preferred Stock.

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ACCUMULATED OTHER COMPREHENSIVE LOSS	3 Months Ended
	Jun. 30, 2024
Equity [Abstract]
ACCUMULATED OTHER COMPREHENSIVE LOSS	ACCUMULATED OTHER COMPREHENSIVE LOSS Comprehensive loss includes net loss and foreign currency translation gains and losses. The accumulated balances for each classification of other comprehensive loss for the three-month period ended June 30, 2024 are as follows (in thousands): Foreign currency translation adjustment Accumulated other comprehensive loss Balance at April 1, 2024 $ (985) $ (985) Net current period change 418 418 Balance at June 30, 2024 $ (567) $ (567) The accumulated balances for each classification of other comprehensive loss for the three-month period ended June 30, 2023 are as follows (in thousands): Foreign currency translation adjustment Accumulated other comprehensive loss Balance at April 1, 2023 $ (1,098) $ (1,098) Net current period change 100 100 Balance at June 30, 2023 $ (998) $ (998)

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SEGMENT INFORMATION	3 Months Ended
	Jun. 30, 2024
Segment Reporting [Abstract]
SEGMENT INFORMATION	SEGMENT INFORMATION The Company operates in one reportable segment, wireless IoT asset management. The following table summarizes revenues by geographic region (in thousands): Three Months Ended June 30, 2023 2024 North America $ 16,765  $ 21,392  Israel 10,905  10,661  Africa 863  24,406  Europe and Middle East 599  7,837  Other 2,960  11,134  $ 32,092  $ 75,430  March 31, 2024 June 30, 2024 Long lived assets by geographic region: North America $ 4,083  $ 8,716  Israel 3,946  3,781  Africa 705  29,513  Europe and Middle East 2,850  4,482  Other 1,135  3,213  $ 12,719  $ 49,705

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INCOME TAXES	3 Months Ended
	Jun. 30, 2024
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES The Company records its interim tax provision based upon a projection of the Company’s annual effective tax rate (“AETR”). This AETR is applied to the year-to-date consolidated pre-tax income to determine the interim provision for income taxes before discrete items. The Company updates the AETR on a quarterly basis as the pre-tax income projections are revised and tax laws are enacted. The effective tax rate (“ETR”) each period is impacted by a number of factors, including the relative mix of domestic and foreign earnings and adjustments to recorded valuation allowances. The currently forecasted ETR may vary from the actual year-end due to the changes in these factors.  Three Months Ended June 30, 2023 2024 Domestic pre-tax book loss $ (10,470) $ (16,475) Foreign pre-tax book income (expense) 7,201  (4,771) Total loss before income taxes (3,269) (21,246) Income tax benefit (expense) 6  (1,053) Total loss after taxes $ (3,263) $ (22,299) Effective tax rate 0.18  % (4.96) % For the three-month periods ended June 30, 2023 and June 30, 2024, the effective tax rate differed from the statutory tax rates primarily due to the mix of domestic and foreign earnings amongst taxable jurisdictions, recorded valuation allowances to fully reserve against deferred tax assets in jurisdictions, and certain discrete items.

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LEASES	3 Months Ended
	Jun. 30, 2024
Leases [Abstract]
LEASES	LEASES The Company determines whether an arrangement is a lease at inception. The Company has operating leases for office space, office equipment and vehicles. The Company’s leases have remaining lease terms of 1 year to 5 years, some of which include options to extend the lease term for up to 5 years. Right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term, and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and operating lease liabilities are recognized at the lease commencement date based on the present value of the future lease payments over the lease term. The operating lease ROU asset also includes any lease payments made in advance of lease commencement and excludes lease incentives. The lease terms used in the calculations of the operating ROU assets and operating lease liabilities include options to extend or terminate the lease when the Company is reasonably certain that it will exercise those options. Lease expense for lease payments is recognized on a straight-line basis over the lease term. As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company has lease agreements with lease and non-lease components, which are generally not accounted for separately. Where lease terms are 12-months or less, and meet the criteria for short-term lease classification, no ROU asset and no lease liability are recognized. Lease costs associated with the short-term leases are included in selling, general and administrative expenses on the Company’s condensed consolidated statements of operations. The components of lease cost are as follows (in thousands): Three Months Ended June 30, 2023 2024 Short-term lease cost $ 119  $ 207  Supplemental cash flow information and non-cash activity related to the Company’s operating leases are as follows (in thousands): Three Months Ended June 30, 2023 2024 Non-cash activity: Right-of-use assets obtained in exchange for lease obligations $ 424  $ 490  Weighted-average remaining lease term and discount rate for our operating leases are as follows: June 30, 2024 Weighted-average remaining lease term - operating leases (in years) (1) 3.48 Weighted-average discount rate 7.3  % (1) Including expected renewals where appropriate. Scheduled maturities of operating lease liabilities outstanding as of June 30, 2024 are as follows (in thousands): July 2024 - March 2025 $ 3,029  2026 3,498  2027 2,117  2028 1,372  2029 1,179  Thereafter 1,432  Total lease payments 12,627  Less: Imputed interest (1,631) Present value of lease payments $ 10,996

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FAIR VALUE OF FINANCIAL INSTRUMENTS	3 Months Ended
	Jun. 30, 2024
Fair Value Disclosures [Abstract]
FAIR VALUE OF FINANCIAL INSTRUMENTS	FAIR VALUE OF FINANCIAL INSTRUMENTS The Company’s cash and cash equivalents, restricted cash and investments in securities are carried at fair value. The carrying value of financing receivables approximates fair value due to the interest rate implicit in the instruments approximating current market rates. The carrying value of accounts receivable, accounts payable and accrued liabilities and short-term bank debt approximates their fair values due to the short period to maturity of these instruments. The fair value of the loans to external parties included in other non-current assets is determined using unobservable market data (Level 3 inputs), that represent management’s estimate of current interest rates that a commercial lender would charge the borrowers. The fair value of the Company’s debt is based on observable relevant market information and future cash flows discounted at current rates, which are Level 2 measurements. The Prepayment Derivative within the RMB Facilities is classified as a level 3 in the fair value hierarchy due to the use of at least one significant unobservable input which is the credit spread volatility (see Note 13). March 31, 2024 June 30, 2024 Carrying Amount Fair Value Carrying Amount Fair Value Loans to external parties $ 475  $ 475  $ 492  $ 492  Debt $ 115,761  $ 116,278  $ 139,561  $ 136,818  Prepayment derivative $ 2,226  $ 2,226  $ 2,226  $ 2,226

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CONCENTRATION OF CUSTOMERS	3 Months Ended
	Jun. 30, 2024
Risks and Uncertainties [Abstract]
CONCENTRATION OF CUSTOMERS	CONCENTRATION OF CUSTOMERS For the three-month periods ended June 30, 2023 and 2024, there were no customers that generated revenues greater than 10% of the Company’s consolidated total revenues or generated greater than 10% of the Company’s consolidated accounts receivable.

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COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Jun. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES From time to time, the Company is involved in various litigation matters involving claims incidental to its business and acquisitions, including employment matters, acquisition related claims, patent infringement and contractual matters, among other issues. While the outcome of any such litigation matters cannot be predicted with certainty, management currently believes that the outcome of these proceedings, including the matters described below, either individually or in the aggregate, will not have a material adverse effect on its business, results of operations or financial condition. The Company records reserves related to legal matters when losses related to such litigation or contingencies are both probable and reasonably estimable. In August 2014, Pointer do Brasil Comercial Ltda. (“Pointer Brazil”) received a notification of lack of payment of VAT tax (Brazilian ICMS tax) in the amount of $189 plus $1,019 of interest and penalty, totaling $1,347 as of March 31, 2024 and $1,208 as of June 30, 2024. The Company is vigorously defending this tax assessment before the administrative court in Brazil, but in light of the administrative and judicial processes in Brazil, it could take up to 14 years before the dispute is finally resolved. In case the administrative court rules against the Company, the Company could claim before the judicial court, an appellate court in Brazil, a substantial reduction of interest charged, potentially reducing the Company’s total exposure. The Company’s legal counsel is of the opinion that the chance of loss is not probable and for this reason the Company has not made any provision. In July 2015, Pointer Brazil received a tax deficiency notice alleging that the services provided by Pointer Brazil should be classified as “telecommunication services” and therefore Pointer Brazil should be subject to the state value-added tax. The aggregate amount claimed to be owed under the notice was approximately $12,110 as of June 30, 2024. On August 14, 2018, the lower chamber of the State Tax Administrative Court in São Paulo rendered a decision that was favorable to Pointer Brazil in relation to the ICMS demands, but adverse in regards to the clerical obligation of keeping in good order a set of ICMS books and related tax receipts. The remaining claim after this administrative decision is $205. The state has appealed to the higher chamber of the State Tax Administrative Court. The Company’s legal counsel is of the opinion that the chance of loss is not probable and that no material costs will arise in respect to these claims. For this reason, the Company has not made any provision. Mobile Telephone Networks Proprietary Limited (“MTN”), a network service provider of MiX Telematics Africa, a subsidiary of the company, is entitled to claw back payments from MiX Telematics Africa in the event of early cancellation of the agreement or certain base connections not being maintained over the term of an amended network services agreement between the parties or certain base connections not being maintained over the term of such agreement. No connection incentives will be received in terms of the amended network services agreement. The maximum potential liability under the arrangement as of March 31, 2024 and June 30, 2024 was $841 and $808, respectively. No loss is considered probable under this arrangement.

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RECENT ACCOUNTING PRONOUNCEMENTS	3 Months Ended
	Jun. 30, 2024
Accounting Changes and Error Corrections [Abstract]
RECENT ACCOUNTING PRONOUNCEMENTS	RECENT ACCOUNTING PRONOUNCEMENTS In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” (“ASU 2023-07”), which requires additional operating segment disclosures in annual and interim consolidated financial statements. ASU 2023-07 is effective for annual periods beginning after December 15, 2023 and for interim periods beginning after December 15, 2024 on a retrospective basis, with early adoption permitted. The Company is evaluating the effect of adopting ASU 2023-07. In December 2023, the FASB issued Accounting Standards Update No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”), which requires disclosure of disaggregated income taxes paid, prescribes standard categories for the components of the effective tax rate reconciliation and modifies other income tax-related disclosures. ASU 2023-09 is effective for annual periods beginning after December 15, 2024 on a retrospective or prospective basis. The Company is evaluating the effect of adopting ASU 2023-09.

v3.24.2.u1

SUBSEQUENT EVENTS	3 Months Ended
	Jun. 30, 2024
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS The directors are not aware of any matter material or otherwise arising since June 30, 2024 and up to the date of this report.

v3.24.2.u1

DESCRIPTION OF THE COMPANY AND BASIS OF PRESENTATION (Policies)	3 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
Basis of preparation	The unaudited interim condensed consolidated financial statements include the accounts of the Company and its wholly owned and majority-owned subsidiaries. All material intercompany balances and transactions have been eliminated in consolidation. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP 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 consolidated financial position of the Company as of March 31, 2024 and June 30, 2024, the consolidated results of its operations for the three-month periods ended June 30, 2023 and 2024, the consolidated change in stockholders’ equity for the three-month periods ended June 30, 2023 and 2024, and the consolidated cash flows for the three-month periods ended June 30, 2023 and 2024. The results of operations for the three-month period ended June 30, 2024 are not necessarily indicative of the operating results for the full year. On May 8, 2024, our Board of Directors approved a change in our fiscal year end from December 31 to March 31 in order to better align our reporting calendar with the April 2, 2024 close of the MiX Combination and MiX Telematics’ historical March 31 fiscal year end. These financial statements should be read in conjunction with the audited consolidated financial statements and related disclosures for the fiscal year ended December 31, 2023 included in the Company’s Annual Report on Form 10-K for the year then ended, and the audited consolidated financial statements and related disclosures for the three-month transition period ended March 31, 2024 included in the Company’s Transition Report on Form 10-KT for the period then ended
USE OF ESTIMATES	USE OF ESTIMATES The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company continually evaluates estimates used in the preparation of the financial statements for reasonableness. The most significant estimates relate to assumptions used in business combinations, allowance for credit losses, income taxes, realization of deferred tax assets, accounting for uncertain tax positions, the impairment of intangible assets, including goodwill and long-lived assets, capitalized software development costs, inventory reserves, standalone selling prices (“SSP”), valuation of the derivative asset, and market-based stock-based compensation costs. Actual results could differ from those estimates.
RECENT ACCOUNTING PRONOUNCEMENTS	RECENT ACCOUNTING PRONOUNCEMENTS In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” (“ASU 2023-07”), which requires additional operating segment disclosures in annual and interim consolidated financial statements. ASU 2023-07 is effective for annual periods beginning after December 15, 2023 and for interim periods beginning after December 15, 2024 on a retrospective basis, with early adoption permitted. The Company is evaluating the effect of adopting ASU 2023-07. In December 2023, the FASB issued Accounting Standards Update No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”), which requires disclosure of disaggregated income taxes paid, prescribes standard categories for the components of the effective tax rate reconciliation and modifies other income tax-related disclosures. ASU 2023-09 is effective for annual periods beginning after December 15, 2024 on a retrospective or prospective basis. The Company is evaluating the effect of adopting ASU 2023-09.

v3.24.2.u1

ACQUISITION (Tables)	3 Months Ended
	Jun. 30, 2024
Business Combination and Asset Acquisition [Abstract]
Schedule of Consideration Transferred, the Assets Acquired and Resulting Deferred Tax	The preliminary estimated fair value of the consideration transferred for MiX Telematics was $362.0 million as of the Implementation Date, which consisted of the following: (in thousands, except for share price and exchange ratio) April 2, 2024 Number of MiX Telematics ordinary shares outstanding 554,021  Exchange ratio 0.12762 Shares of Powerfleet common stock to be issued for MiX Telematics ordinary shares outstanding 70,704  Powerfleet stock price* 5.12 Fair value of Powerfleet common stock transferred to MiX Telematics shareholders 362,005  Replacement of acquiree’s equity awards by the acquirer** 7,818  Total fair value of preliminary consideration 369,823  * Powerfleet’s closing share price on April 2, 2024. ** The portion of the fair-value-based measure of the replacement award that is part of the consideration transferred in exchange for the acquiree equals the portion of the acquiree award that is attributable to pre-combination vesting.
Schedule of Preliminary Allocation of Purchase Price	The preliminary allocation of purchase price was as follows (in thousands): April 2, 2024 Assets acquired: Cash and cash equivalents $ 26,737  Restricted cash 794  Accounts receivable, net 24,675  Inventory, net 4,142  Prepaid expenses and other current assets 8,886  Fixed assets, net 35,587  Intangible assets, net 153,000  Right-of-use asset 3,794  Deferred tax assets 1,093  Other assets 973  Total assets acquired $ 259,681  Liabilities assumed: Short-term bank debt and current maturities of long-term debt $ 20,158  Accounts payable and accrued expenses 26,400  Deferred revenue - current 6,394  Lease liability - current 859  Income taxes payable 355  Lease liability - less current portion 2,852  Deferred tax liability 48,725  Other long-term liabilities 484  Total liabilities assumed $ 106,227  Total identifiable net assets acquired $ 153,454  Non-controlling interest (5) Goodwill 216,374  Purchase price consideration $ 369,823
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination	The following table sets forth preliminary estimated fair values of the components of the identifiable intangible assets acquired and their estimated useful lives: (in thousands) Fair value Weighted average useful lives Trade name $ 10,000  14 years Developed technology 30,000  5 years Customer relationships 113,000  13 years $ 153,000

v3.24.2.u1

REVENUE RECOGNITION (Tables)	3 Months Ended
	Jun. 30, 2024
Revenue from Contract with Customer [Abstract]
Schedule of Disaggregation of Revenue	The following table presents the Company’s revenues disaggregated by revenue source for the three-months ended June 30, 2023 and 2024 (in thousands): Three Months Ended June 30, 2023 2024 Products $ 11,084  $ 18,738  Services 21,008  56,692  $ 32,092  $ 75,430
Schedule of Contract with Customer, Contract Asset, Contract Liability	The balances of contract assets and contract liabilities from contracts with customers are as follows as of March 31, 2024 and June 30, 2024 (in thousands): March 31, 2024 June 30, 2024 Contract Assets: Deferred contract cost(1) $ 2,632  $ 4,322  Deferred costs - current $ 42  $ 24  Contract Liabilities Deferred revenue – services (2) $ 10,674  $ 14,724  Deferred revenue – products (2) 60  120  10,734  14,844  Less: Deferred revenue – current (5,842) (10,019) Deferred revenue – less current portion $ 4,892  $ 4,825  (1) Deferred Contract costs are included in Other assets on the Condensed Consolidated Balance sheets. (2) The Company records deferred revenues when cash payments are received or due in advance of the Company’s performance. For the three-month periods ended June 30, 2023 and 2024, the Company recognized revenue of $1,766 and $2,986, respectively, which was included in the deferred revenue balance at the beginning of each reporting period. The Company expects to recognize as revenue through year 2029, when it transfers those goods and services and, therefore, satisfies its performance obligation to the customers.

v3.24.2.u1

ALLOWANCE FOR CREDIT LOSSES (Tables)	3 Months Ended
	Jun. 30, 2024
Receivables [Abstract]
Schedule of Allowance for Credit Loss	An analysis of the allowance for credit losses for the periods ended June 30, 2023 and 2024 is as follows (in thousands): Three Months Ended June 30, 2023 2024 Allowance for credit losses, March 31 $ 2,328  $ 3,197  Current period provision for expected credit losses 598  1,993  Write-offs charged against the allowance (222) (1,509) Foreign currency translation 62  46  Allowance for credit losses, June 30 $ 2,766  $ 3,727

v3.24.2.u1

PREPAID EXPENSES AND OTHER ASSETS (Tables)	3 Months Ended
	Jun. 30, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Schedule of Prepaid Expenses and Other Current Assets	Prepaid expenses and other current assets comprise the following (in thousands): March 31, 2024 June 30, 2024 Sales-type lease receivables, current $ 1,100  $ 1,125  Prepaid expenses* 2,817  5,772  Contract assets 1,162  1,141  Tax receivables 125  790  Vat receivable —  2,059  Sundry debtors —  2,602  Other current assets 2,887  3,009  $ 8,091  $ 16,498  *This represents the prepaid portion of total deferred contract assets

v3.24.2.u1

INVENTORY (Tables)	3 Months Ended
	Jun. 30, 2024
Inventory Disclosure [Abstract]
Schedule of Inventories	Inventories consist of the following (in thousands): March 31, 2024 June 30, 2024 Components $ 9,403  $ 9,195  Work in process 49  1,788  Finished goods, net 12,206  14,849  $ 21,658  $ 25,832

v3.24.2.u1

FIXED ASSETS (Tables)	3 Months Ended
	Jun. 30, 2024
Property, Plant and Equipment [Abstract]
Schedule of Fixed Assets	Fixed assets are stated at cost, less accumulated depreciation and amortization, and are summarized as follows (in thousands): March 31, 2024 June 30, 2024 Installed and uninstalled products $ 11,030  $ 46,129  Computer software 11,496  12,231  Computer and electronic equipment 6,179  7,126  Furniture and fixtures 2,361  3,733  Leasehold improvements 1,498  1,445  Plant and equipment —  293  Assets in progress —  19  32,564  70,976  Accumulated depreciation and amortization (19,845) (21,271) $ 12,719  $ 49,705

v3.24.2.u1

INTANGIBLE ASSETS AND GOODWILL (Tables)	3 Months Ended
	Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Finite-Lived Intangible Assets	The following table summarizes identifiable intangible assets of the Company as of March 31, 2024 and June 30, 2024 (in thousands): June 30, 2024 Useful Lives (In Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortized: Customer relationships 1 - 13 $ 132,264  $ (10,834) $ 121,430  Trademark and tradename 3 - 15 17,553  (4,253) 13,300  Patents 7 - 11 628  (486) 142  Technology 1 - 20 44,561  (14,236) 30,325  Software to be sold or leased 3 - 6 5,727  (996) 4,731  200,733  (30,805) 169,928  Unamortized Customer list 104  —  104  Trademark and tradename 61  —  61  165  —  165  Total $ 200,898  $ (30,805) $ 170,093  March 31, 2024 Useful Lives (In Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortized: Customer relationships 9 - 12 $ 19,264  $ (8,012) $ 11,252  Trademark and tradename 3 - 15 7,553  (3,877) 3,676  Patents 7 - 11 628  (464) 164  Technology  7 10,911  (10,911) —  Software to be sold or leased 3 5,159  (764) 4,395  43,515  (24,028) 19,487  Unamortized Customer list 104  —  104  Trademark and tradename 61  —  61  165  —  165  Total $ 43,680  $ (24,028) $ 19,652
Schedule of Indefinite-Lived Intangible Assets	The following table summarizes identifiable intangible assets of the Company as of March 31, 2024 and June 30, 2024 (in thousands): June 30, 2024 Useful Lives (In Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortized: Customer relationships 1 - 13 $ 132,264  $ (10,834) $ 121,430  Trademark and tradename 3 - 15 17,553  (4,253) 13,300  Patents 7 - 11 628  (486) 142  Technology 1 - 20 44,561  (14,236) 30,325  Software to be sold or leased 3 - 6 5,727  (996) 4,731  200,733  (30,805) 169,928  Unamortized Customer list 104  —  104  Trademark and tradename 61  —  61  165  —  165  Total $ 200,898  $ (30,805) $ 170,093  March 31, 2024 Useful Lives (In Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortized: Customer relationships 9 - 12 $ 19,264  $ (8,012) $ 11,252  Trademark and tradename 3 - 15 7,553  (3,877) 3,676  Patents 7 - 11 628  (464) 164  Technology  7 10,911  (10,911) —  Software to be sold or leased 3 5,159  (764) 4,395  43,515  (24,028) 19,487  Unamortized Customer list 104  —  104  Trademark and tradename 61  —  61  165  —  165  Total $ 43,680  $ (24,028) $ 19,652
Schedule of Estimated Future Amortization Expense	Estimated future amortization expense for each of the five succeeding fiscal years for these intangible assets is as follows: 2025 (remaining) $ 15,528  2026 22,138  2027 21,145  2028 18,067  2029 14,578  Thereafter 78,472  $ 169,928

v3.24.2.u1

STOCK-BASED COMPENSATION (Tables)	3 Months Ended
	Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]
Schedule of Stock Options	The following table summarizes the activity relating to the Company’s market-based stock options for the three-month period ended June 30, 2024: Options Weighted- Average Exercise Price Weighted Average Contractual Remaining Term (years) Aggregate Intrinsic Values (in thousands)* Outstanding as of April 1, 2024 5,445  13.39  —  —  Granted —  —  —  —  Exercised —  —  —  —  Forfeited —  —  —  —  Outstanding as of June 30, 2024 5,445  13.39 7.72 $ 1,488  Vested as of June 30, 2024 —  —  —  $ —  The following table summarizes the activity relating to the Company’s stock options, excluding the market-based stock options, for the three-month period ended June 30, 2024: Options Weighted- Average Exercise Price Weighted Average Contractual Remaining Term (years) Aggregate Intrinsic Values (in thousands)* Outstanding as of April 1, 2024 1,979  4.68  —  —  Granted 375  4.31  —  —  Exercised —  —  —  —  Forfeited (6) 6.10  —  —  Outstanding as of June 30, 2024 2,348  4.62 7.2 $ 779  Vested as of June 30, 2024 1,973  4.67  6.6 $ 779
Schedule of Fair Value Valuation Assumptions	The fair value of each option grant on the date of grant is estimated using the Black-Scholes option-pricing model reflecting the following weighted-average assumptions: June 30, 2023 June 30, 2024 Expected volatility 55.6  % 60.2  % Expected life of options 6.1 6.5 Risk free interest rate 3.87  % 4.23  % Dividend yield —  —  Weighted-average fair value of options granted during the year $1.66 $2.66
Schedule of Restricted Stock Activity	A summary of all non-vested restricted stock for the three-month period ended June 30, 2024 is as follows: Number of Non-Vested Shares Weighted- Average Grant Date Fair Value Non-vested, March 31, 2024 1,370  2.68  Granted 54  5.45  Vested (1,369) 2.68  Forfeited or expired —  —  Non-vested, June 30, 2024 55  2.68
Schedule of Unvested SARs Activities	The following table summarizes the activities for the outstanding SARs: Number of SARs Weighted- Average Exercise Price Weighted Average Contractual Remaining Term (years) Aggregate Intrinsic Values (in thousands)* Outstanding as of April 1, 2024 —  —  Acquired through MiX Combination 5,740  2.61  Granted —  —  Exercised —  —  Forfeited —  —  Outstanding as of June 30, 2024 5,740  2.61 3.33 Vested as of June 30, 2024 1,813  2.98  1.80 $ 2,881

v3.24.2.u1

NET LOSS PER SHARE (Tables)	3 Months Ended
	Jun. 30, 2024
Earnings Per Share [Abstract]
Schedule of Net Loss Per Share Basic and Diluted	Net loss per share for the three-month periods ended June 30, 2023 and 2024 are as follows: Three Months Ended June 30, 2023 2024 Basic and diluted loss per share Net loss attributable to common stockholders $ (6,170) $ (22,337) Net loss per share attributable to common stockholders - basic and diluted $ (0.17) $ (0.21) Weighted-average common share outstanding - basic and diluted 35,605  107,136

v3.24.2.u1

SHORT-TERM BANK DEBT AND LONG-TERM DEBT (Tables)	3 Months Ended
	Jun. 30, 2024
Debt Disclosure [Abstract]
Schedule of Short-Term Debt	March 31, 2024 June 30, 2024 Short-term bank debt $ —  $ 25,007  Current maturities of long-term debt $ 1,951  $ 2,597  Long-term debt - less current maturities $ 113,810  $ 111,957
Schedule of Key Assumptions	Key assumptions used were: Facility A Facility B Credit spread volatility 50  % 35  % Credit spread 4.48  % 4.99  % Credit rating B- B- Risk free rate SOFR Spot Rate SOFR Spot rate
Schedule of Contractual Maturities of Long-Term Debt	Scheduled contractual maturities of the long-term debt as of June 30, 2024 are as follows: 2025 (remaining) $ 1,458  2026 4,859  2027 47,845  2028 5,345  2029 54,162  113,669  Less: Current portion (2,597) Plus debt costs and prepayment 885  Total $ 111,957

v3.24.2.u1

ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables)	3 Months Ended
	Jun. 30, 2024
Payables and Accruals [Abstract]
Schedule of Accounts Payable and Accrued Liabilities	Accounts payable and accrued expenses consist of the following (in thousands): March 31, 2024 June 30, 2024 Accounts payable $ 20,025  46,104  Accrued warranty 1,138  1,550  Accrued compensation 8,956  13,425  Government authorities 3,062  5,135  Other current liabilities 827  2,557  $ 34,008  $ 68,771
Schedule of Product Warranty Liability	The following table summarizes warranty activity for the three months ended June 30, 2023 and 2024 (in thousands): Three Months Ended June 30, 2023 2024 Accrued warranty reserve, beginning of year $ 2,255  2,926  Accrual for product warranties issued 430  247  Product replacements and other warranty expenditures (110) (86) Expiration of warranties (70) (9) Acquired through MiX Combination —  356  Foreign currency translation difference —  —  Accrued warranty reserve, end of period (1) $ 2,505  3,434  (1) Includes non-current accrued warranty included in other long-term liabilities at June 30, 2023 and 2024 of $1,739 and $1,884, respectively.

v3.24.2.u1

ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables)	3 Months Ended
	Jun. 30, 2024
Equity [Abstract]
Schedule of Accumulated Other Comprehensive Loss	The accumulated balances for each classification of other comprehensive loss for the three-month period ended June 30, 2024 are as follows (in thousands): Foreign currency translation adjustment Accumulated other comprehensive loss Balance at April 1, 2024 $ (985) $ (985) Net current period change 418 418 Balance at June 30, 2024 $ (567) $ (567) The accumulated balances for each classification of other comprehensive loss for the three-month period ended June 30, 2023 are as follows (in thousands): Foreign currency translation adjustment Accumulated other comprehensive loss Balance at April 1, 2023 $ (1,098) $ (1,098) Net current period change 100 100 Balance at June 30, 2023 $ (998) $ (998)

v3.24.2.u1

SEGMENT INFORMATION (Tables)	3 Months Ended
	Jun. 30, 2024
Segment Reporting [Abstract]
Schedule of Revenues and Long Lived Assets by Geographical Region	The Company operates in one reportable segment, wireless IoT asset management. The following table summarizes revenues by geographic region (in thousands): Three Months Ended June 30, 2023 2024 North America $ 16,765  $ 21,392  Israel 10,905  10,661  Africa 863  24,406  Europe and Middle East 599  7,837  Other 2,960  11,134  $ 32,092  $ 75,430  March 31, 2024 June 30, 2024 Long lived assets by geographic region: North America $ 4,083  $ 8,716  Israel 3,946  3,781  Africa 705  29,513  Europe and Middle East 2,850  4,482  Other 1,135  3,213  $ 12,719  $ 49,705

v3.24.2.u1

INCOME TAXES (Tables)	3 Months Ended
	Jun. 30, 2024
Income Tax Disclosure [Abstract]
Schedule of Income Before Income Tax Domestic and Foreign	Three Months Ended June 30, 2023 2024 Domestic pre-tax book loss $ (10,470) $ (16,475) Foreign pre-tax book income (expense) 7,201  (4,771) Total loss before income taxes (3,269) (21,246) Income tax benefit (expense) 6  (1,053) Total loss after taxes $ (3,263) $ (22,299) Effective tax rate 0.18  % (4.96) %

v3.24.2.u1

LEASES (Tables)	3 Months Ended
	Jun. 30, 2024
Leases [Abstract]
Schedule of Components of Lease Cost	The components of lease cost are as follows (in thousands): Three Months Ended June 30, 2023 2024 Short-term lease cost $ 119  $ 207
Schedule of Cash Flow Information and Non Cash Activity of Operating Leases	Supplemental cash flow information and non-cash activity related to the Company’s operating leases are as follows (in thousands): Three Months Ended June 30, 2023 2024 Non-cash activity: Right-of-use assets obtained in exchange for lease obligations $ 424  $ 490
Schedule of Weighted Average Remaining Lease Term and Discount Rate	Weighted-average remaining lease term and discount rate for our operating leases are as follows: June 30, 2024 Weighted-average remaining lease term - operating leases (in years) (1) 3.48 Weighted-average discount rate 7.3  % (1) Including expected renewals where appropriate.
Schedule Maturities of Operating Lease Liabilities	Scheduled maturities of operating lease liabilities outstanding as of June 30, 2024 are as follows (in thousands): July 2024 - March 2025 $ 3,029  2026 3,498  2027 2,117  2028 1,372  2029 1,179  Thereafter 1,432  Total lease payments 12,627  Less: Imputed interest (1,631) Present value of lease payments $ 10,996

v3.24.2.u1

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	3 Months Ended
	Jun. 30, 2024
Fair Value Disclosures [Abstract]
Schedule of Fair Value of Financial Instruments	March 31, 2024 June 30, 2024 Carrying Amount Fair Value Carrying Amount Fair Value Loans to external parties $ 475  $ 475  $ 492  $ 492  Debt $ 115,761  $ 116,278  $ 139,561  $ 136,818  Prepayment derivative $ 2,226  $ 2,226  $ 2,226  $ 2,226

v3.24.2.u1

DESCRIPTION OF THE COMPANY AND BASIS OF PRESENTATION (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Mar. 31, 2024		Mar. 31, 2023
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Net loss attributable to common stockholders	$ (22,337)	$ (6,170)
Additional paid-in capital	578,514		$ 202,607	[1]
Cash and cash equivalents	30,242	21,729	24,354	[1]	$ 24,780
Working capital	25,044
Cash including restricted cash and cash equivalents	$ 31,393	22,038	$ 109,664		$ 25,089
Adjustments
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Net loss attributable to common stockholders		(1,604)
Additional paid-in capital		$ (1,604)
[1] Derived from audited balance sheet as of March 31, 2024.

v3.24.2.u1

ACQUISITION - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023	Apr. 02, 2024
Powerfleet Israel Ltd.
Business Acquisition [Line Items]
Percentage of top 20 institutional investor (percent)			30.00%
MiX Telematics
Business Acquisition [Line Items]
Percentage of top 20 institutional investor (percent)			9.00%
Total percentage of shares held by shareholders			65.00%
MiX Telematics
Business Acquisition [Line Items]
Voting rights			35.00%
Acquisition-related costs	$ 14,491	$ 20,291
Pro forma revenue	43,689
Pro forma net loss	$ 6,932
MiX Telematics | MiX Telematics
Business Acquisition [Line Items]
Voting rights			65.50%

v3.24.2.u1

ACQUISITION - Estimated Fair Value of the Consideration Transferred (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	Apr. 02, 2024	Jun. 30, 2024	Jun. 30, 2023
Business Acquisition [Line Items]
Powerfleet stock price (in dollars per share)	$ 5.12	$ 2.66	$ 1.66
MiX Telematics
Business Acquisition [Line Items]
Number of MiX Telematics ordinary shares outstanding (in shares)	554,021
Exchange ratio	12.762%
Shares of Powerfleet common stock to be issued for MiX Telematics ordinary shares outstanding (in shares)	70,704
Total fair value of preliminary consideration	$ 369,823
MiX Telematics | Fair value of Powerfleet common stock transferred to MiX Telematics shareholders
Business Acquisition [Line Items]
Fair value of Powerfleet common stock transferred to MiX Telematics shareholders	362,005
MiX Telematics | Replacement Equity Awards
Business Acquisition [Line Items]
Replacement of acquiree's equity awards by the acquirer	$ 7,818

v3.24.2.u1

ACQUISITION - Schedule of Consideration Transferred, the Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Apr. 02, 2024	Jun. 30, 2024	Mar. 31, 2024	[1]
Liabilities assumed:
Goodwill		$ 300,775	$ 83,487
MiX Telematics
Assets acquired:
Cash and cash equivalents	$ 26,737
Restricted cash	794
Accounts receivable, net	24,675
Inventory, net	4,142
Prepaid expenses and other current assets	8,886
Fixed assets, net	35,587
Intangible assets, net	153,000
Right-of-use asset	3,794
Deferred tax assets	1,093
Other assets	973
Total assets acquired	259,681
Liabilities assumed:
Short-term bank debt and current maturities of long-term debt	20,158
Accounts payable and accrued expenses	26,400
Deferred revenue - current	6,394
Lease liability - current	859
Income taxes payable	355
Lease liability - less current portion	2,852
Deferred tax liability	48,725
Other long-term liabilities	484
Total liabilities assumed	106,227
Total identifiable net assets acquired	153,454
Non-controlling interest	(5)
Goodwill	216,374
Total fair value of preliminary consideration	$ 369,823
[1] Derived from audited balance sheet as of March 31, 2024.

v3.24.2.u1

ACQUISITION - Schedule of Identifiable Intangible Assets Acquired and Estimated Useful Lives (Details) - MiX Telematics $ in Thousands	Apr. 02, 2024 USD ($)
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets, net	$ 153,000
Trade name
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets, net	$ 10,000
Weighted average useful lives	14 years
Developed technology
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets, net	$ 30,000
Weighted average useful lives	5 years
Customer relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets, net	$ 113,000
Weighted average useful lives	13 years

v3.24.2.u1

CASH AND CASH EQUIVALENTS (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Mar. 31, 2024
MiX Telematics Enterprise BEE Trust
Restricted Cash and Cash Equivalents
Cash	$ 787
Facilities Agreement
Restricted Cash and Cash Equivalents
Escrow deposit		$ 85,000
Vendor Related Property
Restricted Cash and Cash Equivalents
Escrow deposit	310	$ 310
Lease Agreements
Restricted Cash and Cash Equivalents
Cash	$ 54

v3.24.2.u1

REVENUE RECOGNITION - Disaggregated By Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Capitalized Contract Cost [Line Items]
Total revenues	$ 75,430	$ 32,092
Products
Capitalized Contract Cost [Line Items]
Total revenues	18,738	11,084
Services
Capitalized Contract Cost [Line Items]
Total revenues	$ 56,692	$ 21,008

v3.24.2.u1

REVENUE RECOGNITION - Contract Assets and Contract Liabilities from Contracts With Customers (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Mar. 31, 2024
Contract Assets:
Deferred contract cost	$ 4,322		$ 2,632
Deferred costs - current	24		42	[1]
Contract Liabilities
Deferred revenue	14,844		10,734
Less: Deferred revenue – current	(10,019)		(5,842)	[1]
Deferred revenue - less current portion	4,825		4,892	[1]
Revenue	2,986	$ 1,766
Service
Contract Liabilities
Deferred revenue	14,724		10,674
Product
Contract Liabilities
Deferred revenue	$ 120		$ 60
[1] Derived from audited balance sheet as of March 31, 2024.

v3.24.2.u1

ALLOWANCE FOR CREDIT LOSSES - Schedule of Allowance for Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for credit losses, beginning balance	$ 3,197	$ 2,328
Current period provision for expected credit losses	1,993	598
Write-offs charged against the allowance	(1,509)	(222)
Foreign currency translation	46	62
Allowance for credit losses, ending balance	$ 3,727	$ 2,766

v3.24.2.u1

PREPAID EXPENSES AND OTHER ASSETS (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Mar. 31, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Sales-type lease receivables, current	$ 1,125	$ 1,100
Prepaid expenses	5,772	2,817
Contract assets	1,141	1,162
Tax receivables	790	125
Vat receivable	2,059	0
Sundry debtors	2,602	0
Other current assets	3,009	2,887
Prepaid expenses and other current assets	$ 16,498	$ 8,091	[1]
[1] Derived from audited balance sheet as of March 31, 2024.

v3.24.2.u1

INVENTORY - Narrative (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Mar. 31, 2024
Inventory Disclosure [Abstract]
Inventory valuation reserve	$ 97	$ 538

v3.24.2.u1

INVENTORY - Schedule of Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Mar. 31, 2024
Inventory Disclosure [Abstract]
Components	$ 9,195	$ 9,403
Work in process	1,788	49
Finished goods, net	14,849	12,206
Inventory, net	$ 25,832	$ 21,658	[1]
[1] Derived from audited balance sheet as of March 31, 2024.

v3.24.2.u1

FIXED ASSETS - Schedule of Owned Property, Plant and Equipment (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Mar. 31, 2024
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 70,976	$ 32,564
Accumulated depreciation and amortization	(21,271)	(19,845)
Property, plant and equipment, net, total	49,705	12,719	[1]
Installed and uninstalled products
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	46,129	11,030
Computer software
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	12,231	11,496
Computer and electronic equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	7,126	6,179
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	3,733	2,361
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	1,445	1,498
Plant and equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	293	0
Assets in progress
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 19	$ 0
[1] Derived from audited balance sheet as of March 31, 2024.

v3.24.2.u1

FIXED ASSETS - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Property, Plant and Equipment [Abstract]
Depreciation, depletion and amortization, nonproduction	$ 4,749	$ 967

v3.24.2.u1

INTANGIBLE ASSETS AND GOODWILL - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Mar. 31, 2024
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 200,733	$ 43,515
Accumulated Amortization	(30,805)	(24,028)
Net Carrying Amount	169,928	19,487
Indefinite-Lived Intangible Assets [Line Items]
Indefinite-lived intangible assets (excluding goodwill)	165	165
Gross Carrying Amount	200,898	43,680
Accumulated Amortization	(30,805)	(24,028)
Net Carrying Amount	170,093	19,652	[1]
Customer list
Indefinite-Lived Intangible Assets [Line Items]
Indefinite-lived intangible assets (excluding goodwill)	104	104
Trademark and tradename
Indefinite-Lived Intangible Assets [Line Items]
Indefinite-lived intangible assets (excluding goodwill)	61	61
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	132,264	19,264
Accumulated Amortization	(10,834)	(8,012)
Net Carrying Amount	121,430	11,252
Indefinite-Lived Intangible Assets [Line Items]
Accumulated Amortization	$ (10,834)	$ (8,012)
Customer relationships | Minimum
Finite-Lived Intangible Assets [Line Items]
Useful Lives (In Years)	1 year	9 years
Customer relationships | Maximum
Finite-Lived Intangible Assets [Line Items]
Useful Lives (In Years)	13 years	12 years
Trademark and tradename
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 17,553	$ 7,553
Accumulated Amortization	(4,253)	(3,877)
Net Carrying Amount	13,300	3,676
Indefinite-Lived Intangible Assets [Line Items]
Accumulated Amortization	$ (4,253)	$ (3,877)
Trademark and tradename | Minimum
Finite-Lived Intangible Assets [Line Items]
Useful Lives (In Years)	3 years	3 years
Trademark and tradename | Maximum
Finite-Lived Intangible Assets [Line Items]
Useful Lives (In Years)	15 years	15 years
Patents
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 628	$ 628
Accumulated Amortization	(486)	(464)
Net Carrying Amount	142	164
Indefinite-Lived Intangible Assets [Line Items]
Accumulated Amortization	$ (486)	$ (464)
Patents | Minimum
Finite-Lived Intangible Assets [Line Items]
Useful Lives (In Years)	7 years	7 years
Patents | Maximum
Finite-Lived Intangible Assets [Line Items]
Useful Lives (In Years)	11 years	11 years
Technology
Finite-Lived Intangible Assets [Line Items]
Useful Lives (In Years)		7 years
Gross Carrying Amount	$ 44,561	$ 10,911
Accumulated Amortization	(14,236)	(10,911)
Net Carrying Amount	30,325	0
Indefinite-Lived Intangible Assets [Line Items]
Accumulated Amortization	$ (14,236)	$ (10,911)
Technology | Minimum
Finite-Lived Intangible Assets [Line Items]
Useful Lives (In Years)	1 year
Technology | Maximum
Finite-Lived Intangible Assets [Line Items]
Useful Lives (In Years)	20 years
Software to be sold or leased
Finite-Lived Intangible Assets [Line Items]
Useful Lives (In Years)		3 years
Gross Carrying Amount	$ 5,727	$ 5,159
Accumulated Amortization	(996)	(764)
Net Carrying Amount	4,731	4,395
Indefinite-Lived Intangible Assets [Line Items]
Accumulated Amortization	$ (996)	$ (764)
Software to be sold or leased | Minimum
Finite-Lived Intangible Assets [Line Items]
Useful Lives (In Years)	3 years
Software to be sold or leased | Maximum
Finite-Lived Intangible Assets [Line Items]
Useful Lives (In Years)	6 years
[1] Derived from audited balance sheet as of March 31, 2024.

v3.24.2.u1

INTANGIBLE ASSETS AND GOODWILL - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 5,586	$ 1,356
Customer relationships | Average
Finite-Lived Intangible Assets [Line Items]
Weighted-average amortization period (in years)	12 years 8 months 12 days
Trademark and tradename | Average
Finite-Lived Intangible Assets [Line Items]
Weighted-average amortization period (in years)	12 years 1 month 6 days
Patents | Average
Finite-Lived Intangible Assets [Line Items]
Weighted-average amortization period (in years)	7 years
Technology | Average
Finite-Lived Intangible Assets [Line Items]
Weighted-average amortization period (in years)	11 years 7 months 6 days
Software to be sold or leased | Average
Finite-Lived Intangible Assets [Line Items]
Weighted-average amortization period (in years)	3 years

v3.24.2.u1

INTANGIBLE ASSETS AND GOODWILL - Schedule of Estimated Future Amortization Expense (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Mar. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
2025 (remaining)	$ 15,528
2026	22,138
2027	21,145
2028	18,067
2029	14,578
Thereafter	78,472
Net Carrying Amount	$ 169,928	$ 19,487

v3.24.2.u1

STOCK-BASED COMPENSATION - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested (in shares)	375
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 1,817	$ 585
Total fair value of share options vested	1,457	562
Unrecognized compensation costs	$ 983
Expected period for recognition of unvested awards	1 year 4 months 2 days
Stock Options One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation costs	$ 3,597
Expected period for recognition of unvested awards	7 years 8 months 19 days
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 3,095	$ 267
Expected period for recognition of unvested awards	10 months 17 days
Unrecognized compensation to non-vested shares	$ 258
SARs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	1,000
Unrecognized compensation costs	$ 7,500
Expected period for recognition of unvested awards	3 years 3 months 3 days

v3.24.2.u1

STOCK-BASED COMPENSATION - Schedule of Stock Options (Details) $ / shares in Units, $ in Thousands	3 Months Ended
	Jun. 30, 2024 USD ($) $ / shares shares
Weighted- Average Exercise Price
Weighted average remaining contractual term, vest	6 years 7 months 6 days
Aggregate intrinsic value, vest | $	$ 779
Stock Options Including Market Based Stock
Options
Outstanding, beginning balance (in shares) | shares	5,445
Granted (in shares) | shares	0
Exercised (in shares) | shares	0
Forfeited (in shares) | shares	0
Outstanding, ending balance (in shares) | shares	5,445
Vested (in shares) | shares	0
Weighted- Average Exercise Price
Outstanding, beginning balance (in dollars per share) | $ / shares	$ 13.39
Granted (in dollars per share) | $ / shares	0
Exercised (in dollars per share) | $ / shares	0
Forfeited (in dollars per share) | $ / shares	0
Outstanding, ending balance (in dollars per share) | $ / shares	13.39
Vested (in dollars per share) | $ / shares	$ 0
Weighted average remaining contractual term, outstanding	7 years 8 months 19 days
Aggregate intrinsic value, outstanding | $	$ 1,488
Aggregate intrinsic value, vest | $	$ 0
Stock Options Excluding Market Based Stock
Options
Outstanding, beginning balance (in shares) | shares	1,979
Granted (in shares) | shares	375
Exercised (in shares) | shares	0
Forfeited (in shares) | shares	(6)
Outstanding, ending balance (in shares) | shares	2,348
Vested (in shares) | shares	1,973
Weighted- Average Exercise Price
Outstanding, beginning balance (in dollars per share) | $ / shares	$ 4.68
Granted (in dollars per share) | $ / shares	4.31
Exercised (in dollars per share) | $ / shares	0
Forfeited (in dollars per share) | $ / shares	6.10
Outstanding, ending balance (in dollars per share) | $ / shares	4.62
Vested (in dollars per share) | $ / shares	$ 4.67
Weighted average remaining contractual term, outstanding	7 years 2 months 12 days
Aggregate intrinsic value, outstanding | $	$ 779

v3.24.2.u1

STOCK-BASED COMPENSATION - Schedule of Fair Value Valuation Assumptions (Details) - $ / shares	3 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Apr. 02, 2024
Share-Based Payment Arrangement [Abstract]
Expected volatility	60.20%	55.60%
Expected life of options	6 years 6 months	6 years 1 month 6 days
Risk free interest rate	4.23%	3.87%
Dividend yield	0.00%	0.00%
Weighted-average fair value of options granted during the year (in dollars per share)	$ 2.66	$ 1.66	$ 5.12

v3.24.2.u1

STOCK-BASED COMPENSATION - Schedule of All Non-Vested Restricted Stock (Details) - RSUs	3 Months Ended
	Jun. 30, 2024 $ / shares shares
Number of Non-Vested Shares
Non-vested as of beginning of period (in shares) | shares	1,370
Granted (in shares) | shares	54
Vested (in shares) | shares	(1,369)
Forfeited or expired (in shares) | shares	0
Non-vested as of end of period (in shares) | shares	55
Weighted- Average Grant Date Fair Value
Non-vested as of beginning of period (in dollars per share) | $ / shares	$ 2.68
Granted (in dollars per share) | $ / shares	5.45
Vested (in dollars per share) | $ / shares	2.68
Forfeited or expired (in dollars per share) | $ / shares	0
Non-vested as of end of period (in dollars per share) | $ / shares	$ 2.68

v3.24.2.u1

STOCK-BASED COMPENSATION - Schedule of Activities for the Outstanding SARs (Details) - Stock Appreciation Rights $ / shares in Units, $ in Thousands	3 Months Ended
	Jun. 30, 2024 USD ($) $ / shares shares
Number of SARs
Outstanding, beginning balance (in shares) | shares	0
Acquired through MiX Combination (in shares) | shares	5,740
Granted (in shares) | shares	0
Exercised (in shares) | shares	0
Forfeited (in shares) | shares	0
Outstanding, ending balance (in shares) | shares	5,740
Vested (in shares) | shares	1,813
Weighted- Average Exercise Price
Outstanding, beginning balance (in dollars per share) | $ / shares	$ 0
Acquired through MiX Combination (in dollars per share) | $ / shares	2.61
Granted (in dollars per share) | $ / shares	0
Exercised (in dollars per share) | $ / shares	0
Forfeited (in dollars per share) | $ / shares	0
Outstanding, ending balance (in dollars per share) | $ / shares	2.61
Vested (in dollars per share) | $ / shares	$ 2.98
Stock Options Additional Disclosures
Weighted average contractual remaining term, outstanding (in years)	3 years 3 months 29 days
Weighted average contractual remaining term, vested (in years)	1 year 9 months 18 days
Aggregate intrinsic values, vested | $	$ 2,881

v3.24.2.u1

NET LOSS PER SHARE - Schedule of Net Loss Per Share Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Basic and diluted loss per share
Net loss attributable to common stockholders - basic	$ (22,337)	$ (6,170)
Net loss attributable to common stockholders - diluted	$ (22,337)	$ (6,170)
Net loss per share attributable to common stockholders - basic (in dollars per share)	$ (0.21)	$ (0.17)
Net loss per share attributable to common stockholders - diluted (in dollars per share)	$ (0.21)	$ (0.17)
Weighted-average common share outstanding - basic (in shares)	107,136	35,605
Weighted-average common share outstanding - diluted (in shares)	107,136	35,605

v3.24.2.u1

SHORT-TERM BANK DEBT AND LONG-TERM DEBT - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Mar. 31, 2024
Debt Disclosure [Abstract]
Short-term bank debt	$ 25,007	$ 0
Current maturities of long-term debt	2,597	1,951
Long-term debt - less current maturities	$ 111,957	$ 113,810	[1]
[1] Derived from audited balance sheet as of March 31, 2024.

v3.24.2.u1

SHORT-TERM BANK DEBT AND LONG-TERM DEBT - Narrative (Details) ₪ in Millions					3 Months Ended
	Mar. 18, 2024 USD ($) loan	Mar. 14, 2024 USD ($)	Mar. 13, 2024 USD ($)	Mar. 07, 2024 USD ($) loan	Jun. 30, 2024 USD ($) loan	Mar. 31, 2024 USD ($)		Jun. 30, 2023 USD ($)	Jun. 30, 2024 ZAR (R) loan	Jun. 30, 2024 ILS (₪) loan	Mar. 14, 2024 ZAR (R)	Nov. 15, 2022 ZAR (R)
Line of Credit Facility [Line Items]
Borrowing facilities outstanding					$ 24,323,000
Book overdrafts					684,000
Proceeds to prepay loan	$ 11,200,000
Minimum equity					$ 390,417,000	$ 38,531,000	[1]
Line of Credit
Line of Credit Facility [Line Items]
Debt instrument, term					5 years
Debt instrument, basis spread on variable rate					6.00%
RMB Facility
Line of Credit Facility [Line Items]
Maximum borrowing capacity		$ 19,200,000
Hapoalim Term Facilities
Line of Credit Facility [Line Items]
Proceeds from lines of credit	$ 30,000,000				$ 30,000,000
Proceeds to prepay loan					$ 11,200,000
Equity to total assets, percentage					35.00%				35.00%	35.00%
Net debt to EBITDA ratio					2				2	2
Present value of cash flow maximum availability, percentage					10.00%				10.00%	10.00%
Increase in carrying amount					$ 18,800,000
Increase in deferred finance cost								$ 35,000
Amortization of debt issuance costs					30,000
Recorded interest expense					$ 655,000			$ 152,000
Hapoalim Term Facilities | Line of Credit
Line of Credit Facility [Line Items]
Minimum repayment amount | ₪										₪ 1
Term A Facility | Line of Credit
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate					2.20%
Term A Facility | Line of Credit | Period One
Line of Credit Facility [Line Items]
Principal amortization rate					10.00%				10.00%	10.00%
Term A Facility | Line of Credit | Period Two
Line of Credit Facility [Line Items]
Principal amortization rate					25.00%				25.00%	25.00%
Term A Facility | Line of Credit | Period Three
Line of Credit Facility [Line Items]
Principal amortization rate					27.50%				27.50%	27.50%
Term A Facility | Line of Credit | Period Four
Line of Credit Facility [Line Items]
Principal amortization rate					27.50%				27.50%	27.50%
Term A Facility | Line of Credit | Period Five
Line of Credit Facility [Line Items]
Principal amortization rate					10.00%				10.00%	10.00%
Term B Facility | Line of Credit
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate					2.30%
Term C Facility | NIS-denominated loans
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate					2.50%
Term C Facility | U.S. dollar-denominated loans
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate					2.15%
Term D Facility | Line of Credit
Line of Credit Facility [Line Items]
Interest rate	0.50%
RMB Debt
Line of Credit Facility [Line Items]
Number of loans (loan) | loan				2
Aggregate principal amount				$ 85,000,000
Proceeds from lines of credit			$ 85,000,000
Minimum repayment amount				1,000,000
Amortization of debt issuance costs					$ 77,000
Recorded interest expense					$ 1,870,000	400,000
Subject to a minimum, reduction				5,000,000
Prepayment at discount (premium)					10.00%				10.00%	10.00%
Debt issuance costs				$ 1,000,000
RMB Debt | Period One
Line of Credit Facility [Line Items]
First annual required prepayment, refinancing fee rate				2.00%
RMB Debt | Period Two
Line of Credit Facility [Line Items]
First annual required prepayment, refinancing fee rate				1.00%
RMB Facility A
Line of Credit Facility [Line Items]
Aggregate principal amount				$ 42,500,000
Interest rate				8.699%
Loan prepayment derivative				$ 610,000		610,000
RMB Facility A | 10 Percent Decrease In Spread
Line of Credit Facility [Line Items]
Increase (decrease) in derivative assets				(190,000)
RMB Facility A | 10 Percent Increase In Spread
Line of Credit Facility [Line Items]
Increase (decrease) in derivative assets				158,000
RMB Facility B
Line of Credit Facility [Line Items]
Aggregate principal amount				$ 42,500,000
Interest rate				8.979%
Loan prepayment derivative				$ 1,616,000		$ 1,616,000
RMB Facility B | 10 Percent Decrease In Spread
Line of Credit Facility [Line Items]
Increase (decrease) in derivative assets				(465,000)
RMB Facility B | 10 Percent Increase In Spread
Line of Credit Facility [Line Items]
Increase (decrease) in derivative assets				$ 416,000
Pointer Telocation Ltd. | Hapoalim Term Facilities
Line of Credit Facility [Line Items]
Net debt levels, percentage					100.00%				100.00%	100.00%
EBITDA, maximum ratio					4.75				4.75	4.75
Powerfleet Israel Ltd. | Hapoalim Term Facilities
Line of Credit Facility [Line Items]
Amount of facility utilized					$ 4,388,000
Number of loans (loan) | loan	2				2				2	2
Aggregate principal amount	$ 30,000,000				$ 30,000,000
Minimum equity requirement					60,000
Powerfleet Israel Ltd. | Term A Facility
Line of Credit Facility [Line Items]
Aggregate principal amount	20,000,000				20,000,000
Powerfleet Israel Ltd. | Term B Facility
Line of Credit Facility [Line Items]
Aggregate principal amount	$ 10,000,000				10,000,000
Line of Credit | RMB Facility
Line of Credit Facility [Line Items]
Credit facility, period		364 days
Maximum borrowing capacity | R											R 350,000,000
Revolving Credit Facility
Line of Credit Facility [Line Items]
Undrawn borrowing remaining					15,612,000
Revolving Credit Facility | Pointer Telocation Ltd.
Line of Credit Facility [Line Items]
Amount of facility utilized					4,388,000
Number of loans (loan) | loan	2
Aggregate principal amount	$ 20,000,000				$ 10,000,000
Debt instrument, term					5 years
Revolving Credit Facility | Pointer Telocation Ltd. | Term C Facility
Line of Credit Facility [Line Items]
Aggregate principal amount	10,000,000
Revolving Credit Facility | Pointer Telocation Ltd. | Term D Facility
Line of Credit Facility [Line Items]
Aggregate principal amount	$ 10,000,000
Investec Limited
Line of Credit Facility [Line Items]
Credit facility, period					364 days
Investec Limited | General Committed Banking Facility
Line of Credit Facility [Line Items]
Amount of facility utilized					$ 19,232,000
Maximum borrowing capacity					$ 19,232,000				R 350,000,000
Commitment fee percentage					0.30%
Percentage deducted from interest rate					1.50%				1.50%	1.50%
Standard Bank Limited | CFC Overdraft Facility
Line of Credit Facility [Line Items]
Amount of facility utilized					$ 554,000
Maximum borrowing capacity					$ 3,846,000							R 70,000,000
Percentage deducted from interest rate					1.20%				1.20%	1.20%
[1] Derived from audited balance sheet as of March 31, 2024.

v3.24.2.u1

SHORT-TERM BANK DEBT AND LONG-TERM DEBT - Schedule of Key Assumptions (Details)	Jun. 30, 2024
RMB Facility A | Credit spread volatility
Line of Credit Facility [Line Items]
Debt instrument, measurement input	0.50
RMB Facility A | Credit spread
Line of Credit Facility [Line Items]
Debt instrument, measurement input	0.0448
RMB Facility B | Credit spread volatility
Line of Credit Facility [Line Items]
Debt instrument, measurement input	0.35
RMB Facility B | Credit spread
Line of Credit Facility [Line Items]
Debt instrument, measurement input	0.0499

v3.24.2.u1

SHORT-TERM BANK DEBT AND LONG-TERM DEBT - Schedule of Contractual Maturities of Long-Term Debt (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Mar. 31, 2024
Debt Disclosure [Abstract]
2025 (remaining)	$ 1,458
2026	4,859
2027	47,845
2028	5,345
2029	54,162
Long-Term Debt	113,669
Less: Current portion	(2,597)	$ (1,951)
Plus debt costs and prepayment	885
Long-term debt - less current maturities	$ 111,957	$ 113,810	[1]
[1] Derived from audited balance sheet as of March 31, 2024.

v3.24.2.u1

ACCOUNTS PAYABLE AND ACCRUED EXPENSES - Schedule of Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Mar. 31, 2024
Payables and Accruals [Abstract]
Accounts payable	$ 46,104	$ 20,025
Accrued warranty	1,550	1,138
Accrued compensation	13,425	8,956
Government authorities	5,135	3,062
Other current liabilities	2,557	827
Accounts payable and accrued expenses	$ 68,771	$ 34,008	[1]
[1] Derived from audited balance sheet as of March 31, 2024.

v3.24.2.u1

ACCOUNTS PAYABLE AND ACCRUED EXPENSES - Schedule of Product Warranty Liability (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward]
Accrued warranty reserve, beginning of year	$ 2,926	$ 2,255
Accrual for product warranties issued	247	430
Product replacements and other warranty expenditures	(86)	(110)
Expiration of warranties	(9)	(70)
Acquired through MiX Combination	356	0
Foreign currency translation difference	0	0
Accrued warranty reserve, end of period	3,434	2,505
Accrued warranty	3,434	2,505
Other Noncurrent Liabilities
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward]
Accrued warranty reserve, end of period	1,884	1,739
Accrued warranty	$ 1,884	$ 1,739

v3.24.2.u1

STOCKHOLDERS' EQUITY (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Apr. 02, 2024	Mar. 31, 2024	Oct. 03, 2019
Class of Stock [Line Items]
Preference shares, authorized (in shares)	50,000,000			50,000,000
Preferred stock, par value (in dollars per share)	$ 0.01			$ 0.01
Redeemable Preferred Stock
Class of Stock [Line Items]
Preference shares, authorized (in shares)	150,000
Preferred stock, par value (in dollars per share)	$ 0.01
Series A Preferred Stock
Class of Stock [Line Items]
Preference shares, authorized (in shares)	100,000
Preference shares, issued (in shares)					50,000
Preferred stock redemption amount			$ 90,300
Dividend rate annual increase	1.00%
Dividends	$ 25	$ 1,129
Series A Preferred Stock | Minimum
Class of Stock [Line Items]
Preferred stock, dividend rate, percentage	7.50%
Series A Preferred Stock | Maximum
Class of Stock [Line Items]
Preferred stock, dividend rate, percentage	17.50%
Undesignated Preferred Stock
Class of Stock [Line Items]
Preference shares, authorized (in shares)	50,000

v3.24.2.u1

ACCUMULATED OTHER COMPREHENSIVE LOSS - Schedule of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2024		Jun. 30, 2023
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	$ 38,636	[1]	$ 73,302
Net current period change	418		100
Ending balance	390,548		68,112
Accumulated other comprehensive loss
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	(985)		(1,098)
Ending balance	(567)		(998)
Foreign currency translation adjustment
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	(985)		(1,098)
Net current period change	418		100
Ending balance	$ (567)		$ (998)
[1] Derived from audited balance sheet as of March 31, 2024.

v3.24.2.u1

SEGMENT INFORMATION - Schedule of Revenues and Long Lived Assets by Geographical Region (Details) $ in Thousands	3 Months Ended
	Jun. 30, 2024 USD ($) segment	Jun. 30, 2023 USD ($)	Mar. 31, 2024 USD ($)
Segment Reporting [Abstract]
Number of reportable segments | segment	1
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenues	$ 75,430	$ 32,092
Long lived assets	49,705		$ 12,719
North America
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenues	21,392	16,765
Long lived assets	8,716		4,083
Israel
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenues	10,661	10,905
Long lived assets	3,781		3,946
Africa
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenues	24,406	863
Long lived assets	29,513		705
Europe and Middle East
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenues	7,837	599
Long lived assets	4,482		2,850
Other
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenues	11,134	$ 2,960
Long lived assets	$ 3,213		$ 1,135

v3.24.2.u1

INCOME TAXES - Schedule of Income Before Income Tax Domestic and Foreign (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Income Tax Disclosure [Abstract]
Domestic pre-tax book loss	$ (16,475)	$ (10,470)
Foreign pre-tax book income (expense)	(4,771)	7,201
Net loss before income taxes	(21,246)	(3,269)
Income tax benefit (expense)	(1,053)	6
Net loss before non-controlling interest	$ (22,299)	$ (3,263)
Effective tax rate (as a percent)	(4.96%)	0.18%

v3.24.2.u1

LEASES - Narrative (Details)	Jun. 30, 2024
Lessee, Lease, Description [Line Items]
Lease renewal term (in years)	5 years
Minimum
Lessee, Lease, Description [Line Items]
Remaining lease term (in years)	1 year
Maximum
Lessee, Lease, Description [Line Items]
Remaining lease term (in years)	5 years

v3.24.2.u1

LEASES - Schedule of Components of Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Leases [Abstract]
Short-term lease cost	$ 207	$ 119

v3.24.2.u1

LEASES - Schedule of Cash Flow Information and Non Cash Activity of Operating Leases (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Non-cash activity:
Right-of-use assets obtained in exchange for lease obligations	$ 490	$ 424

v3.24.2.u1

LEASES - Schedule of Weighted Average Remaining Lease Term and Discount Rate (Details)	Jun. 30, 2024
Leases [Abstract]
Weighted-average remaining lease term - operating leases (in years)	3 years 5 months 23 days
Weighted-average discount rate	7.30%

v3.24.2.u1

LEASES - Scheduled Maturities of Operating Lease Liabilities (Details) $ in Thousands	Jun. 30, 2024 USD ($)
Leases [Abstract]
July 2024 - March 2025	$ 3,029
2026	3,498
2027	2,117
2028	1,372
2029	1,179
Thereafter	1,432
Total lease payments	12,627
Less: Imputed interest	(1,631)
Present value of lease payments	$ 10,996

v3.24.2.u1

FAIR VALUE OF FINANCIAL INSTRUMENTS - Schedule of Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Mar. 31, 2024
Level 3 | Carrying Amount
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans to external parties	$ 492	$ 475
Prepayment derivative	2,226	2,226
Level 3 | Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans to external parties	492	475
Prepayment derivative	2,226	2,226
Level 2 | Carrying Amount
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt	139,561	115,761
Level 2 | Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt	$ 136,818	$ 116,278

v3.24.2.u1

COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands		1 Months Ended	3 Months Ended
	Aug. 14, 2018	Aug. 31, 2014	Jun. 30, 2024	Mar. 31, 2024
Loss Contingencies [Line Items]
Damages sought value	$ 205
Maximum | Amended Network Service Agreement with MTN
Loss Contingencies [Line Items]
Estimate of possible loss			$ 808	$ 841
Pointer do Brasil Comercial Ltda
Loss Contingencies [Line Items]
Interest		$ 189
Penalty		$ 1,019
Total interest and penalty			1,208	$ 1,347
Loss contingency damages sought value			$ 12,110

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