What changed in this filing

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Item 1. Business

2023-03-31 compared with 2022-03-16 · 162 added, 119 removed, 273 unchanged (51% of the section changed)

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efficiency, reduce costs, and drive profitability.

Our offerings are sold under the global brands PowerFleet, Pointer, and Cellocator.

We have an established history of IoT device

development and innovation creating devices that can withstand harsh and rugged environments.

With 54 patents and patent applications

and 25 years’ experience, we believe we are well positioned to evolve our offerings for even greater value to

customers through our cloud-based applications for unified operations.

Our offerings are sold under the global brands Powerfleet, Pointer, and

have an established history of IoT device development and innovation creating devices that can withstand harsh and rugged

environments.

With 46 patents and patent applications and over 25 years’ experience, we believe we are well positioned to

evolve our offerings for even greater value to customers through our cloud-based applications for unified operations.

deliver advanced data solutions that connect mobile assets to increase visibility, operational efficiency and profitability.

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benchmarks and peer-industry comparisons.

We look for analytics, as well as the data contained therein, to differentiate us from

our competitors, adding significant value to customers business operations, and helping to contribute to their bottom line.

solutions also feature open application programming interfaces (APIs) for additional integrations and development to boost other enterprise

management systems and third-party applications.

We look for analytics, as well as the data contained therein, to differentiate us from our

competitors, adding significant value to customers’ business operations, and helping to contribute to their bottom line.

Our solutions

also feature open application programming interfaces (APIs) for additional integrations and development to boost other enterprise management

systems and third-party applications.

market and sell our connected IoT data solutions to a wide range of customers in the commercial and government sectors.

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enable easy analysis and sharing of real-time information.

provide critical actionable information that powers

unified operations throughout organizations.

We are solving the challenge of inefficient data collection, real-time visibility, and analysis

that leads to transformative business operations.

Our SaaS cloud-based applications take data from our IoT devices and ecosystem of third-party

and partner applications to present actionable information for customers to increase efficiencies, improve safety and security, and increase

their profitability in easy-to-understand reports, dashboards, and real-time alerts.

provide critical actionable information that powers unified operations throughout organizations.

We are solving the challenge of inefficient

data collection, real-time visibility, and analysis that leads to transformative business operations.

Our SaaS cloud-based applications

take data from our IoT devices and ecosystem of third-party and partner applications to present actionable information for customers

to increase efficiencies, improve safety and security, and increase their profitability in easy-to-understand reports, dashboards, and

real-time alerts.

Applications of our IoT Solutions

Company provides real-time intelligence for organizations with high-value assets allowing them to make informed decisions and

ultimately improve their operations, safety, and bottom line.

Our applications enable organizations to capture IoT data from various

types of assets with devices and sensors creating a holistic view for analysis and action.

core applications our IoT solutions address include:

provide real-time intelligence for organizations with high-value assets allowing them to make informed decisions and ultimately

improve their operations, safety, and bottom line.

Our applications enable organizations to capture IoT data from various types of

assets with devices and sensors creating a holistic view for analysis and action.

core applications that our IoT solutions address include:

Organizations with expensive assets such as vehicles, machinery, or equipment need to keep track of where the assets

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process to enforce and maintain.

Our solutions provide critical data points and reports to help customers stay within compliance,

avoid fines for non-compliance, and automate the reporting process.

We deliver real-time position reports, hours-of-service, temperature

monitoring and control, electronic safety checklists, workflow management, controlling vehicle access to only authorized operators, inspection

reports, and history logs of use.

Our solutions provide critical data points and reports to help customers stay within compliance, avoid

fines for non-compliance, and automate the reporting process.

We deliver real-time position reports, hours-of-service, temperature monitoring

and control, electronic safety checklists, workflow management, controlling vehicle access to only authorized operators, inspection reports,

and history logs of use.

Our applications are designed to provide asset and operator management, monitoring, and visibility for safer environments.

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that can be used to help exonerate drivers when in accidents or help bolster training and coaching programs of employees.

offers preventative solutions such as safety warning products to alert vehicle operators of objects or pedestrians in their pathway to

prevent accidents, injuries, and damage.

Our analytics platform features dashboards with KPIs and can help manager identify patterns,

trends and outliers that can be used as flags for interventions.

We also offer

preventative solutions such as safety warning products to alert vehicle operators of objects or pedestrians in their pathway to prevent

accidents, injuries, and damage.

Our analytics platform features dashboards with KPIs and can help managers identify patterns, trends

and outliers that can be used as flags for interventions.

Operational Efficiency & Productivity:

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internally and with customers.

In addition, customers can reduce revenue per mile, reduce claims and claims processing times, and reduce

In addition, customers can increase revenue per mile, reduce claims and claims processing times, and reduce

the number of assets needed.

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exceeding the allotted time for loading and unloading.

help customers to automate processes and increase

productivity of their employees.

Our applications enable customers to determine where operators are assigned and can temporarily reassign

them based on peak needs, evaluate any disparity in the amount employees are paid compared to the time they actually spend operating

Our applications help answer the question of why does it take some employees longer than others to do specific tasks, where

to focus labor resources, and how to forecast vehicles and operators needed for future workflow.

help customers to automate processes and increase productivity of their employees.

Our applications enable customers to determine where

operators are assigned and can temporarily reassign them based on peak needs, evaluate any disparity in the amount employees are paid

compared to the time they actually spend operating a vehicle.

Our applications help answer the question of why does it take some employees

longer than others to do specific tasks, where to focus labor resources, and how to forecast vehicles and operators needed for future

addition, for our rental car vertical, our applications automatically upload vehicle identification number, mileage and fuel data as

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through our second-generation On-Board Diagnostics (“OBD-II”), industry standard.

Our patented fleet management

system helps fleet owners improve asset utilization, reduce capital costs, and cut operating expenses, such as vehicle maintenance or

service and support.

Our patented fleet management system helps

fleet owners improve asset utilization, reduce capital costs, and cut operating expenses, such as vehicle maintenance or service and

Our solutions allow our customers to reduce theft and improve inventory management.

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We also provide stolen vehicle retrieval (“SVR”) services.

Most of the SVR

products used to provide our SVR services are mainly sold to (i) local car dealers and importers that in turn sell the products equipped

in the vehicle to the end users who purchase the SVR services directly from us, or (ii) leasing companies which purchase our SVR services

in order to secure their own vehicles.

Most of the SVR products used to

provide our SVR services are mainly sold to (i) local car dealers and importers that in turn sell the products equipped in the vehicle

to the end users who purchase the SVR services directly from us, or (ii) leasing companies which purchase our SVR services in order to

secure their own vehicles.

enable our customers to improve asset utilization, reduce capital costs, and cut operating expenses, such as vehicle maintenance or service

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as a Service :

We provide system monitoring, help desk technical support, escalation procedure development, routine diagnostic data

analysis and software updates services as part of the ongoing contract term.

We provide system monitoring, help desk technical support, escalation procedure development, routine diagnostic

data analysis and software updates services as part of the ongoing contract term.

These services ensure deployed systems remain in optimal

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overviews, troubleshooting guides, and issue escalation procedures.

provide our consulting services both as a stand-alone service to study the potential benefits of implementing a IoT business intelligence

provide our consulting services both as a standalone service to study the potential benefits of implementing a IoT business intelligence

solution and as part of the system implementation itself.

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In those instances, the payment amount is recorded as deferred revenue and revenue is recognized over the service

objective is to become a leading global provider of IoT SaaS solutions for high-value enterprise assets to drive optimized operations

and create safer environments.

To achieve this goal, we intend to prove value, retain, and grow business with existing customers and

pursue opportunities with new customers by:

our business solutions by vertical markets and go to market strategies to each market;

ourselves as an innovative thought leader;

a world class sales and marketing team;

seizing, and managing revenue opportunities;

our customer base, achieving wider market penetration and educating customers with mixed assets in their organization about

our other applications;

improved marketing, sales and support strategies;

our initial sales cycles by helping our customers through:

and quantifying benefits expected from our solutions;

transitions from implementation to roll-out;

service revenue through long-term SaaS contracts;

differentiating

our product offering through analytics, machine learning, unique sensors, and value-added services;

incremental revenue at a high profit margin;

our partnerships and integrations.

objective is to become a leading global provider of IoT SaaS solutions for high-value enterprise assets to drive optimized

operations and create safer environments.

Commencing in 2023 we plan to consolidate and augment many of our existing capabilities on

a single customer software platform branded as “Unity.” We have designed our Unity platform to enable rapid and deep

integration with IoT devices and third-party business systems to a highly scalable data pipeline that powers artificial

intelligence-driven insights to help companies save lives, time, and money .

Unity will be an increasingly important initiative to meet our objective of becoming a leading global provider of IoT SaaS solutions

for high-value enterprise assets to drive optimized operations and create safer environments.

To achieve this goal, we intend to

prove value, retain and grow business with existing customers and pursue opportunities with new customers by:

focusing our business solutions

by vertical markets and go to market strategies to each market;

positioning ourselves as

an innovative thought leader;

maintaining a world class

sales and marketing team;

identifying, seizing, and

managing revenue opportunities;

expanding our customer

base, achieving wider market penetration and educating customers with mixed assets in their organization about our other applications;

implementing improved marketing,

sales and support strategies;

shortening our initial

sales cycles by helping our customers through:

identifying and quantifying

benefits expected from our solutions;

accelerating transitions

from implementation to roll-out;

building service revenue

through long-term SaaS contracts;

differentiating our product

offering through analytics, machine learning, unique sensors, and value-added services;

producing incremental revenue

at a high profit margin;

expanding our partnerships

and integrations.

also plan to expand into new applications and markets by:

opportunities to integrate our system with computer hardware and software vendors, including:

transportation

management systems;

and timecard systems;

resource planning;

management systems.

relationships with global distributors;

and pursuing strategically sound acquisitions of companies.

pursuing opportunities

to integrate our system with computer hardware and software vendors, including:

transportation management

warehouse management systems;

labor and timecard systems;

enterprise resource planning;

yard management systems.

establishing relationships

with global distributors;

evaluating and pursuing

strategically sound acquisitions of companies.

and Marketing

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Some of our global customers that benefit from the Company’s combined solutions to power their specific IoT and

machine to machine mobility needs include Avis, Junghenrich, Walmart, Toyota, and XPO Logistics.

No individual customer generates

revenue equal to or greater than 10% of the Company’s consolidated total revenue.

machine to machine mobility needs include Avis, Walmart, Toyota, and XPO Logistics.

No individual customer generates revenue

equal to or greater than 10% of the Company’s consolidated total revenue.

market for our solutions is rapidly evolving, highly competitive and fragmented.

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digital design, test development and product-level testing.

our research and development efforts are focused on expanding the capabilities of our products, differentiating our offerings, simplifying

the implementation, support and utilization of our solutions, reducing the cost of our solutions, increasing the reliability of our solutions,

expanding the functionality of our solutions to meet customer and market requirements, applying new advances in technology to enhance

existing solutions, and building further competitive advantages through our intellectual property portfolio.

our research and development efforts are focused on expanding the capabilities of our products;

differentiating our offerings

through our Unity platform build, simplifying the implementation, support and utilization of our solutions, reducing the cost of our

solutions, increasing the reliability of our solutions, expanding the functionality of our solutions to meet customer and market

requirements, applying new advances in technology to enhance existing solutions, and building further competitive advantages through

our intellectual property portfolio.

attempt to protect our technology and products through a variety of intellectual property protections, including the pursuit of patent

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Where strategically appropriate, we will attempt to pursue suspected violators of our patents and, whenever possible, monetize our intellectual

built a portfolio of patents and patent applications relating to various aspects of our technology products and solutions.

As of February

25, 2022, our patent portfolio includes 42 U.S.

built a portfolio of patents and patent applications relating to various aspects of our technology and products,

including our wireless asset management systems, connected car products, and vehicle management systems.

As of March 9, 2023, our patent

portfolio includes 38 U.S.

patents, 3 pending U.S.

patent applications, 2 pending foreign international applications,

and 6 foreign patents.

patent applications, 3 pending foreign patent applications, and 2 foreign patents.

With the timely payment of all maintenance fees, the U.S.

patents have expiration dates falling between

2023 and 2039.

No single patent or patent family is considered material to our business.

We have, or have applied for, U.S.

and/or foreign

trademark protection for I.D.

patents have expiration dates falling between 2024 and 2040.

No single patent

or patent family is considered material to our business.

have, or have applied for, U.S.

and/or foreign trademark protection for I.D.

SYSTEMS ® and Design, the I.D.

SYSTEMS Logo ® , VEHICLE ASSET COMMUNICATOR®,

POWERFLEET ® , POWERFLEET VISION ® , POWERFLEET IQ ® , POWERFLEET YARD ® , VERIWISE

IQ ® , ASSET INTELLIGENCE ® , didBOX®, FREIGHTCAM, KEYTROLLER®, REEFERMATE ® , POINTER ®

and Design, and CELLOCATOR ® and Design.

SYSTEMS Logo ® ,

VEHICLE ASSET COMMUNICATOR ® , POWERFLEET ® , POWERFLEET VISION ® , POWERFLEET IQ ® ,

POWERFLEET YARD ® , VERIWISE IQ ® , ASSET INTELLIGENCE ® , didBOX ® , FREIGHTCAM,

KEYTROLLER ® , REEFERMATE ® , POWERFLEET and Design ® and CAMERA Design ® .

attempt to avoid infringing known proprietary rights of third parties in our product development and sales efforts.

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our products violate third-party proprietary rights, we may not be able to:

licenses to continue offering such products without substantial reengineering;

our products successfully to avoid infringement;

licenses on commercially reasonable terms, if at all;

an alleged infringement successfully;

without substantial expense and damage awards.

obtain licenses to continue offering such products

without substantial reengineering;

re-engineer our products successfully to avoid infringement;

obtain licenses on commercially reasonable terms, if

litigate an alleged infringement successfully;

settle without substantial expense and damage awards.

claims against us relating to the infringement of third-party proprietary rights, even if without merit, could result in the expenditure

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Commission (the “FCC”) and the Occupational Safety and Health Administration (“OSHA”).

Various state agencies also have promulgated regulations which concern the use of lasers and radio/electromagnetic emissions standards.

Various state agencies

also have promulgated regulations which concern the use of lasers and radio/electromagnetic emissions standards.

changes in the United States and other countries in which we may operate in the future could require modifications to some of our products

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1996, our subsidiary Pointer Telocation Ltd.

(“Pointer”) has held an operational license, which is renewed on a regular

basis, from the Ministry of Communications in Israel to operate our wireless messaging system over 2 MHz in the 966 to 968 MHz radio

spectrum band.

It also obtains licenses from the Israeli Ministry of Communications in order to manufacture, import, market and sell

its products in Israel.

(“Pointer”) has held an operational license, which is renewed on a regular basis,

from the Ministry of Communications in Israel to operate our wireless messaging system over 2 MHz in the 966 to 968 MHz radio spectrum

It also obtains licenses from the Israeli Ministry of Communications in order to manufacture, import, market and sell its products

subsidiary Pointer Argentina S.A.

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in Argentina and local operators are required to obtain a specific license for their operations.

are currently registered by the Federal Department of Security (“SEGOB”) in Mexico to provide our services.

are currently registered by the Federal Department of Security in Mexico to provide our services.

subsidiary Pointer SA (PTY) Ltd.

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Private Security Industry Regulation Act, 2001 in South Africa.

Our products are also listed with the (Independent Communications

Authority of South Africa).

Our products are also listed with the Independent Communications Authority

of South Africa.

the use of our cellular monitoring units does not require regulatory approvals, in Israel, the use of our radio frequency products is

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indefinitely.

of March 1, 2022, we had 669 total employees across the globe, all of whom are full-time employees.

We believe that our relationships with our employees is good.

of March 9, 2023, we had 795 total employees globally, 100% of whom are full-time employees.

We believe that our relationships

with our employees is good.

interest rates, higher inflation, fluctuations in currency values, supply chain disruptions and the conflict between Russia and Ukraine

have resulted in significant economic disruption and adversely impacted the broader global economy, including our customers and suppliers.

Given the dynamic and uncertain nature of the current macroeconomic environment, we cannot reasonably estimate the impact of such developments

on our financial condition, results of operations or cash flows into the foreseeable future.

The ultimate extent of the effects of these

developments remain highly uncertain, and such effects could exist for an extended period of time.

Inflation Reduction Act of 2022 (the “IRA”) was signed into law in August 2022.

The IRA is federal legislation designed to

raise revenue from, among other things, the imposition of certain corporate tax measures, while authorizing spending on energy and climate

change initiatives and subsidizing the Affordable Care Act.

The IRA also introduced a 1% excise tax on certain corporate stock buybacks,

which would impose a nondeductible 1% excise tax on the fair market value of certain stock that is “repurchased” during the

taxable year by a publicly traded U.S.

corporation or acquired by certain of its subsidiaries.

Management continues to monitor any potential

impact of the IRA on our results.

No immediate or direct effect from the legislation has had a material impact on our results at this

The CHIPS and Science

Act (“CHIPS”) was signed into law in August 2022.

CHIPS is a federal statue providing funding for research and domestic production

of semiconductors.

Additional funding can be provided through CHIPS to various federal agencies as well as towards climate science research.

No immediate or direct material effect from the legislation has had a material impact on our results at this time.

Systems, Inc.

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PowerFleet, Inc.

was incorporated

in the State of Delaware in February 2019 for the purpose of effectuating the transactions pursuant to which we acquired Pointer (the

“Transactions”).

was incorporated in the

State of Delaware in February 2019 for the purpose of effectuating the transactions pursuant to which we acquired Pointer (the “Transactions”).

Upon the closing of the Transactions, Powerfleet became the parent entity of I.D.

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website at www.sec.gov.

We also make available on this website, free of charge, our Code of Ethics for Senior Financial Officers,

which applies to our principal executive officer, principal financial officer and principal accounting officer.

We also make available on this website, free of charge, our Code of Ethics for Senior Financial Officers, which

applies to our principal executive officer, principal financial officer and principal accounting officer.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business