Jones Soda (JSDA) 10-Q13 Aug 142014 Q2 Quarterly reportFinancial data

Company Profile

Document_And_Entity_Informatio

Document And Entity Information	6 Months Ended
Document And Entity Information	Jun. 30, 2014	Aug. 11, 2014
Document And Entity Information [Abstract]	'	'
Entity Registrant Name	'JONES SODA CO	'
Entity Central Index Key	'0001083522	'
Current Fiscal Year End Date	'--12-31	'
Entity Filer Category	'Smaller Reporting Company	'
Document Type	'10-Q	'
Document Period End Date	30-Jun-14	'
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q2	'
Amendment Flag	'false	'
Entity Common Stock, Shares Outstanding	'	39,154,962

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (USD $)	Jun. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Current assets:	'	'
Cash and cash equivalents	$519	$1,464
Accounts receivable, net of allowance of $48 and $42	2,648	1,034
Inventory	3,420	2,315
Prepaid expenses and other current assets	185	410
Total current assets	6,772	5,223
Fixed assets, net of accumulated depreciation of $1,245 and $1,194	126	232
Other assets	36	59
Total assets	6,934	5,514
Current liabilities:	'	'
Accounts payable	3,036	871
Accrued expenses	776	892
Taxes payable	17	37
Other current liabilities	50	48
Total current liabilities	3,879	1,848
Long term liabilities - other	381	406
Shareholders' equity:	'	'
Common stock, no par value: Authorized - 100,000,000; issued and outstanding shares - 39,134,582 and 38,710,416 shares, respectively	53,117	52,981
Additional paid-in capital	8,128	7,941
Accumulated other comprehensive income	413	355
Accumulated deficit	-58,984	-58,017
Total shareholders' equity	2,674	3,260
Total liabilities and shareholders' equity	$6,934	$5,514

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (Parenthetical) (USD $)	Jun. 30, 2014	Dec. 31, 2013
In Thousands, except Share data, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Current Assets:	'	'
Allowance for accounts receivable	$48	$42
Accumulated depreciation	$1,245	$1,194
Stockholders' Equity:	'	'
Common stock, par value	$0	$0
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	39,134,582	38,710,416
Common stock, shares outstanding	39,134,582	38,710,416

Condensed_Consolidated_Stateme

Condensed Consolidated Statements Of Operations (USD $)	3 Months Ended		6 Months Ended
In Thousands, except Share data, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Condensed Consolidated Statements Of Operations [Abstract]	'	'	'	'
Revenue	$3,879	$4,287	$6,769	$7,383
Cost of goods sold	3,007	3,053	5,204	5,389
Gross profit	872	1,234	1,565	1,994
Operating expenses:	'	'	'	'
Selling and marketing	591	625	1,089	1,098
General and administrative	683	690	1,388	1,365
Operating expenses	1,274	1,315	2,477	2,463
Loss from operations	-402	-81	-912	-469
Other income (expense), net	3	-9	-8	4
Loss before income taxes	-399	-90	-920	-465
Income tax expense, net	-30	-5	-48	-29
Net loss	($429)	($95)	($968)	($494)
Net loss per share - basic and diluted	($0.01)	$0	($0.02)	($0.01)
Weighted average basic and diluted common shares outstanding	39,078,592	38,530,416	38,894,504	38,530,416

Condensed_Consolidated_Stateme1

Condensed Consolidated Statements Of Comprehensive Loss (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Condensed Consolidated Statements Of Comprehensive Loss [Abstract]	'	'	'	'
Net loss	($429)	($95)	($968)	($494)
Other comprehensive income (loss):	'	'	'	'
Foreign currency translation adjustment loss	89	-44	60	-75
Total comprehensive loss	($340)	($139)	($908)	($569)

Condensed_Consolidated_Stateme2

Condensed Consolidated Statements Of Cash Flows (USD $)	6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013
OPERATING ACTIVITIES:	'	'
Net loss	($968)	($494)
Adjustments to reconcile net loss to net cash used in operating activities:	'	'
Depreciation and amortization	105	118
Stock-based compensation	187	147
Change in allowance for doubtful accounts	6	-38
Gain on sale of fixed asset	'	-6
Changes in operating assets and liabilities:	'	'
Accounts receivable	-1,582	-70
Inventory	-1,102	-601
Prepaid expenses and other current assets	226	85
Other assets	22	20
Accounts payable	2,163	708
Accrued expenses	-119	-153
Taxes payable	-19	-23
Deferred rent	2	'
Other liabilities	-19	-14
Net cash used in operating activities	-1,098	-321
INVESTING ACTIVITIES:	'	'
Sale of fixed assets	1	38
Net cash provided by investing activities	1	38
FINANCING ACTIVITIES:	'	'
Proceeds from exercise of stock options	136	'
Payment of capital lease obligations	-6	-47
Net cash provided by (used in) financing activities	130	-47
Net decrease in cash and cash equivalents	-967	-330
Effect of exchange rate changes on cash	22	4
Cash and cash equivalents, beginning of period	1,464	1,654
Cash and cash equivalents, end of period	519	1,328
Supplemental disclosure:	'	'
Interest	-1	7
Income taxes	'	$32

Nature_of_Operations_and_Summa

Nature of Operations and Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2014
Nature Of Operations And Summary Of Significant Accounting Policies [Abstract]	'
Nature Of Operations And Summary Of Significant Accounting Policies	'
		1	Nature of Operations and Summary of Significant Accounting Policies
	Jones Soda Co. develops, produces, markets and distributes premium beverages which we sell and distribute primarily in North America through our network of independent distributors located throughout the U.S. and Canada and directly to our national and regional retail accounts. We also sell products in select international markets.
	We are a Washington corporation and have two operating subsidiaries, Jones Soda Co. (USA) Inc. and Jones Soda (Canada) Inc. (Subsidiaries).
	Basis of presentation and consolidation
	The accompanying condensed consolidated balance sheet as of December 31, 2013, which has been derived from audited consolidated financial statements, and unaudited interim condensed consolidated financial statements as of June 30, 2014, have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) and the Securities and Exchange Commission (SEC) rules and regulations applicable to interim financial reporting. The condensed consolidated financial statements include our accounts and accounts of our wholly owned subsidiaries. All intercompany transactions between us and our subsidiaries have been eliminated in consolidation.
	In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all material adjustments, consisting only of those of a normal recurring nature, considered necessary for a fair presentation of our financial position, results of operations and cash flows at the dates and for the periods presented. The operating results for the interim periods presented are not necessarily indicative of the results expected for the full year. These financial statements should be read in conjunction with the audited financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2013.
	Recent accounting pronouncements
	In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”). ASU 2014-09 is intended to improve the financial reporting requirements for revenue from contracts with customers by providing a principle based approach. The core principal of the standard is that revenue should be recognized when the transfer of promised goods or services is made in an amount that the entity expects to be entitled to in exchange for the transfer of goods and services. ASU 2014-09 also requires disclosures enabling users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. This standard will be effective for financial statements issued by public companies for annual reporting periods beginning after December 15, 2016. Early adoption is not permitted. The Company is currently evaluating the potential impact of ASU 2014-09 on the consolidated financial statements.
	Use of estimates
	The preparation of the condensed consolidated financial statements requires management to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Significant items subject to such estimates and assumptions include, but are not limited to, inventory valuation, depreciable lives and valuation of capital assets, valuation allowances for receivables, trade promotion liabilities, stock-based compensation expense, valuation allowance for deferred income tax assets, contingencies, and forecasts supporting the going concern assumption and related disclosures. Actual results could differ from those estimates.
	Liquidity
	As of June 30, 2014, we had cash and cash-equivalents of approximately $519,000 and working capital of $2.9 million. Cash used in operations during the six months ended June 30, 2014 totaled $1.1 million compared to $321,000 for the same period a year ago. The increase in cash used in operations compared to the same period a year ago is primarily driven by the ramping up of production to meet increased summer sales volume compared to the prior year period. In addition, our cash flows vary throughout the year based on seasonality. We traditionally use more cash in the first half of the year as we build inventory to support our historically seasonally-stronger shipping months of April through September. We incurred a net loss of $429,000 for the three months ended June 30, 2014.
	As of the date of this Report, we believe that our current cash and cash equivalents will be sufficient to meet our anticipated cash needs through December 31, 2014. Additionally, our Loan Facility (described below), is available for our working capital needs. Beginning in 2012, we made significant reductions in operating expenses and personnel, primarily in the second half of 2012, to better align our operations with available capital and slow our cash used in operations. We have continued at these reduced operating expense levels and anticipate a similar overhead structure this year. We believe that these cost controls and realigned expenses are strategically important to further the Company's long-term viability.
	We have a revolving secured credit facility (Loan Facility) with BFI Business Finance (BFI). The Loan Facility allows us to borrow a maximum aggregate amount of up to $2.0 million based on eligible accounts receivable and inventory. As of June 30, 2014, our eligible borrowing base was approximately $1.3 million. (The Loan Facility is described in Note 3 in this Report.) We may use the Loan Facility for our working capital needs. Subsequent to June 30, 2014, we made initial draws on our Loan Facility, which is discussed further in Note 3.
	On April 1, 2014, we received $124,000 in cash from the exercise by several of our directors and officers of stock options for a total of 385,833 shares of common stock. We may receive additional cash through the exercise of stock options or warrants in the future. However, we cannot predict the timing or amount of cash proceeds we may receive from exercise, if at all, of any of the outstanding stock options or warrants.
	We may require additional financing to support our working capital needs in the future. The amount of additional capital we may require, the timing of our capital needs and the availability of financing to fund those needs will depend on a number of factors, including our strategic initiatives and operating plans, the performance of our business and the market conditions for debt or equity financing. Additionally, the amount of capital required will depend on our ability to meet our case sales goals and otherwise successfully execute our operating plan. We believe it is imperative to meet these sales objectives in order to lessen our reliance on external financing in the future. We intend to continually monitor and adjust our business plan as necessary to respond to developments in our business, our markets and the broader economy. Although we believe various debt and equity financing alternatives will be available to us to support our working capital needs, financing arrangements on acceptable terms may not be available to us when needed. Additionally, these alternatives may require significant cash payments for interest and other costs or could be highly dilutive to our existing shareholders. Any such financing alternatives may not provide us with sufficient funds to meet our long-term capital requirements. If necessary, we may explore strategic transactions that we consider to be in the best interest of the Company and our shareholders, which may include, without limitation, public or private offerings of debt or equity securities, a rights offering, and other strategic alternatives; however, these options may not ultimately be available or feasible.
	The uncertainties relating to our ability to successfully execute on our operating plan and the performance of our business, combined with the difficult financing environment, continue to raise substantial doubt about our ability to continue as a going concern. Our financial statements for the periods presented were prepared assuming we would continue as a going concern, which contemplates that we will continue in operation for the foreseeable future and will be able to realize assets and settle liabilities and commitments in the normal course of business. These financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that could result should we be unable to continue as a going concern.
	Seasonality
	Our sales are seasonal and we experience fluctuations in quarterly results as a result of many factors. We historically have generated a greater percentage of our revenues during the warm weather months of April through September. Timing of customer purchases will vary each year and sales can be expected to shift from one quarter to another. As a result, management believes that period-to-period comparisons of results of operations are not necessarily meaningful and should not be relied upon as any indication of future performance or results expected for the fiscal year.

Inventory

Inventory	6 Months Ended
Inventory	Jun. 30, 2014
Inventory [Abstract]	'
Inventory	'
	2. Inventory
	Inventory consisted of the following (in thousands):


		30-Jun-14		31-Dec-13
	Finished goods	$	2,694	$	1,455
	Raw materials		726		860
		$	3,420	$	2,315
	Finished goods primarily include product ready for shipment, as well as promotional merchandise held for sale. Raw materials primarily include ingredients, concentrate and packaging.

Line_Of_Credit

Line Of Credit	6 Months Ended
Line Of Credit	Jun. 30, 2014
Line Of Credit [Abstract]	'
Line Of Credit	'
	3. Line of Credit
	On December 27, 2013, we entered into a revolving secured Loan Facility with BFI, pursuant to which we, through our Subsidiaries, may borrow a maximum aggregate amount of up to $2.0 million, subject to satisfaction of certain conditions.
	Under this Loan Facility, we may periodically request advances equal to the lesser of: (a) $2.0 million, or (b) the Borrowing Base which is the sum of and in the following priority (i) 85% of eligible U.S. accounts receivable, plus (ii) 35% of finished goods inventory not to exceed $300,000, plus (iii) 50% of eligible Canadian accounts receivable not to exceed $300,000, subject to any reserve amount established by BFI. As of June 30, 2014, our eligible borrowing base was approximately $1.3 million. Advances under the Loan Facility bear interest at the prime rate plus 2%, where prime may not be less 4%, and a monthly loan fee of 0.15% will be payable to BFI monthly on the daily loan balance. The Loan Facility has an initial term of one year which automatically extends for successive one year terms unless either party gives at least 30 days' prior written notice of its intent to terminate the Loan Facility at the end of the then current term, with an annual fee of $15,000. BFI has the right to terminate the Loan Facility upon 120 days’ prior written notice. All present and future obligations of the Subsidiaries arising under the Loan Facility are guaranteed by the Company and are secured by a first priority security interest in all of the assets of the Company and the Subsidiaries. The Loan Facility contains customary representations and warranties as well as affirmative and negative covenants. As of June 30, 2014, we were in compliance with all debt covenants and had not borrowed on this Loan Facility.
	Subsequent to June 30, 2014, we made an initial draw on this Loan Facility in the amount of $744,000 on July 1, 2014. The balance of the Loan Facility fluctuates daily due to pay downs based on cash receipts generated from sales and increases from additional draws. As of August 6, 2014, the balance on the Loan Facility was $284,000.

Warrants

Warrants	6 Months Ended
Warrants	Jun. 30, 2014
Warrants [Abstract]	'
Warrants	'
	4. Warrants
	In February 2012 as part of our registered offering, we sold and issued Warrants for the purchase of up to 3,207,500 shares of common stock. Each Warrant has an exercise price of $0.70 per share, for total potential proceeds to us of up to $2,245,250 if all of the Warrants are exercised in full for cash. The Warrants are exercisable for cash or, solely in the absence of an effective registration statement, by cashless exercise. The exercise price of the Warrants is subject to adjustment in the case of stock splits, stock dividends, combinations of shares and similar recapitalization transactions, and also upon any distributions to Company shareholders, business combinations, sale of substantially all assets and other fundamental transactions. The exercise of the Warrants is subject to certain beneficial ownership and other limitations set forth in the Warrants. The term of the Warrants expire on August 6, 2017. Any remaining Warrants that are outstanding on August 6, 2017, the expiration date, will automatically be exercised at that time by cashless exercise.
	As of June 30, 2014, 3,057,500 of the Warrants remain outstanding and Warrants for 150,000 shares were previously exercised for cash. No Warrants were exercised during the six months ended June 30, 2014 or 2013.

Shareholders_Equity

Shareholders' Equity	6 Months Ended
Shareholders' Equity	Jun. 30, 2014
Shareholders' Equity [Abstract]	'
Shareholders' Equity	'
	5.Shareholders’ Equity
	Under the terms of our 2011 Incentive Plan (Plan), the number of shares authorized under the Plan may be increased each January 1st by an amount equal to the least of (a) 1,300,000 shares, (b) 4.0% of our outstanding common stock as of the end of our immediately preceding fiscal year, and (c) a lesser amount determined by the Board of Directors (the Board), provided that the number of shares that may be granted pursuant to awards in a single year may not exceed 10% of our outstanding shares of common stock on a fully diluted basis as of the end of the immediately preceding fiscal year. Effective January 1, 2014, the total number of shares of common stock authorized under the Plan increased to 6,884,032 shares.
	Under the terms of the Plan, the Board may grant awards to employees, officers, directors, consultants, agents, advisors and independent contractors. Awards may consist of stock options, stock appreciation rights, stock awards, restricted stock, stock units, performance awards or other stock or cash-based awards. Stock options are granted at the closing price of our stock on the date of grant, and generally have a ten-year term and vest over a period of 48 months with the first 25.0% cliff vesting one year from the grant date and monthly thereafter. As of June 30, 2014, there were 2,694,683 shares of unissued common stock authorized and available for future awards under the Plan.
		(a)		Stock options:
	A summary of our stock option activity is as follows:


			Outstanding Options
			Number of Shares		Weighted Average Exercise Price
	Balance at January 1, 2014		4,227,820		$	0.44
	Options granted		555,000			0.44
	Options exercised		-424,166			0.32
	Options cancelled/expired		-126,563			0.36
	Balance at June 30, 2014		4,232,091		$	0.46
	Exercisable, June 30, 2014		2,607,656		$	0.47
	Vested and expected to vest		4,040,776		$	0.46
	(b) Stock-based compensation expense:
	Stock-based compensation expense is recognized using the straight-line attribution method over the employees’ requisite service period. We recognize compensation expense for only the portion of stock options or restricted stock expected to vest. Therefore, we apply estimated forfeiture rates that are derived from historical employee termination behavior. If the actual number of forfeitures differs from those estimated by management, additional adjustments to stock-based compensation expense may be required in future periods.
	At June 30, 2014, we had unrecognized compensation expense related to stock options of $225,400 to be recognized over a weighted-average period of 2.2 years. At June 30, 2014, all prior awards of restricted stock had vested, and we had no unrecognized compensation expense related to non-vested restricted stock.
	The following table summarizes the stock-based compensation expense (in thousands):


			Three months ended June 30,						Six months ended June 30,
			2014			2013			2014		2013
	Type of awards:
	Stock options		$	100		$	79		$	187	$	144
	Restricted stock			—			—			—		3
			$	100		$	79		$	187	$	147
	Income statement account:
	Selling and marketing		$	8		$	21		$	18	$	32
	General and administrative			92			58			169		115
			$	100		$	79		$	187	$	147
	We employ the following key weighted-average assumptions in determining the fair value of stock options, using the Black-Scholes option pricing model and the simplified method to estimate the expected term of “plain vanilla” options:



			Six months ended June 30,
			2014				2013
	Expected dividend yield			—				—
	Expected stock price volatility			101.6	%			107.6	%
	Risk-free interest rate			1.8	%			1.0	%
	Expected term (in years)			5.5	years			5.8	years
	Weighted-average grant date fair-value		$	0.34			$	0.22
	During the six months ended June 30, 2014, no modifications were made to outstanding stock options.
	The aggregate intrinsic value of stock options outstanding at June 30, 2014 and 2013 was $612,300 and $756,300 and for options exercisable was $260,000 and $384,800, respectively. Additionally, the aggregate intrinsic value of options exercised during the six months ended June 30, 2014 and 2013 was $51,000 and $0, respectively. The intrinsic value of outstanding and exercisable stock options is calculated as the quoted market price of the stock at the balance sheet date less the exercise price of the option. There was no intrinsic value of restricted stock vested during the three and six months ended June 30, 2014 and 2013.

Segment_Information

Segment Information	6 Months Ended
Segment Information	Jun. 30, 2014
Segment Information [Abstract]	'
Segment Information	'
	6. Segment Information
	We have one operating segment with operations primarily in the United States and Canada. Sales are assigned to geographic locations based on the location of customers. Geographic is as follows (in thousands):


		Three months ended June 30,				Six months ended June 30,
		2014		2013		2014		2013
	Revenue:
	United States	$	2,494	$	2,834	$	4,693	$	5,129
	Canada		1,382		1,404		1,974		2,174
	Other countries		3		49		102		80
	Total revenue	$	3,879	$	4,287	$	6,769	$	7,383
	During each of the three months ended June 30, 2014 and 2013, three of our customers represented approximately 37% of revenue. During the six months ended June 30, 2014 and 2013, three of our customers represented approximately 33% and 36%, respectively, of revenue.

Subsequent_Events

Subsequent Events	6 Months Ended
Subsequent Events	Jun. 30, 2014
Subsequent Events [Abstract]	'
Subsequent Events	'
	7. Subsequent Events
	In July 2014, we made an initial draw on our Loan Facility in the amount of $744,000, as described in Note 3. The balance of the Loan Facility fluctuates daily due to pay downs based on cash receipts generated from sales and increases from additional draws. As of August 6, 2014, the balance on the Loan Facility was $284,000.

Recovered_Sheet1

Nature Of Operations And Summary Of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2014
Nature Of Operations And Summary Of Significant Accounting Policies [Abstract]	'
Basis Of Presentation And Consolidation	'
	Basis of presentation and consolidation
	The accompanying condensed consolidated balance sheet as of December 31, 2013, which has been derived from audited consolidated financial statements, and unaudited interim condensed consolidated financial statements as of June 30, 2014, have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) and the Securities and Exchange Commission (SEC) rules and regulations applicable to interim financial reporting. The condensed consolidated financial statements include our accounts and accounts of our wholly owned subsidiaries. All intercompany transactions between us and our subsidiaries have been eliminated in consolidation.
	In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all material adjustments, consisting only of those of a normal recurring nature, considered necessary for a fair presentation of our financial position, results of operations and cash flows at the dates and for the periods presented. The operating results for the interim periods presented are not necessarily indicative of the results expected for the full year. These financial statements should be read in conjunction with the audited financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2013.

Recent Accounting Pronouncements	'
	Recent accounting pronouncements
	In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”). ASU 2014-09 is intended to improve the financial reporting requirements for revenue from contracts with customers by providing a principle based approach. The core principal of the standard is that revenue should be recognized when the transfer of promised goods or services is made in an amount that the entity expects to be entitled to in exchange for the transfer of goods and services. ASU 2014-09 also requires disclosures enabling users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. This standard will be effective for financial statements issued by public companies for annual reporting periods beginning after December 15, 2016. Early adoption is not permitted. The Company is currently evaluating the potential impact of ASU 2014-09 on the consolidated financial statements.

Use Of Estimates	'
	Use of estimates
	The preparation of the condensed consolidated financial statements requires management to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Significant items subject to such estimates and assumptions include, but are not limited to, inventory valuation, depreciable lives and valuation of capital assets, valuation allowances for receivables, trade promotion liabilities, stock-based compensation expense, valuation allowance for deferred income tax assets, contingencies, and forecasts supporting the going concern assumption and related disclosures. Actual results could differ from those estimates.

Liquidity	'

	Liquidity
	As of June 30, 2014, we had cash and cash-equivalents of approximately $519,000 and working capital of $2.9 million. Cash used in operations during the six months ended June 30, 2014 totaled $1.1 million compared to $321,000 for the same period a year ago. The increase in cash used in operations compared to the same period a year ago is primarily driven by the ramping up of production to meet increased summer sales volume compared to the prior year period. In addition, our cash flows vary throughout the year based on seasonality. We traditionally use more cash in the first half of the year as we build inventory to support our historically seasonally-stronger shipping months of April through September. We incurred a net loss of $429,000 for the three months ended June 30, 2014.
	As of the date of this Report, we believe that our current cash and cash equivalents will be sufficient to meet our anticipated cash needs through December 31, 2014. Additionally, our Loan Facility (described below), is available for our working capital needs. Beginning in 2012, we made significant reductions in operating expenses and personnel, primarily in the second half of 2012, to better align our operations with available capital and slow our cash used in operations. We have continued at these reduced operating expense levels and anticipate a similar overhead structure this year. We believe that these cost controls and realigned expenses are strategically important to further the Company's long-term viability.
	We have a revolving secured credit facility (Loan Facility) with BFI Business Finance (BFI). The Loan Facility allows us to borrow a maximum aggregate amount of up to $2.0 million based on eligible accounts receivable and inventory. As of June 30, 2014, our eligible borrowing base was approximately $1.3 million. (The Loan Facility is described in Note 3 in this Report.) We may use the Loan Facility for our working capital needs. Subsequent to June 30, 2014, we made initial draws on our Loan Facility, which is discussed further in Note 3.
	On April 1, 2014, we received $124,000 in cash from the exercise by several of our directors and officers of stock options for a total of 385,833 shares of common stock. We may receive additional cash through the exercise of stock options or warrants in the future. However, we cannot predict the timing or amount of cash proceeds we may receive from exercise, if at all, of any of the outstanding stock options or warrants.
	We may require additional financing to support our working capital needs in the future. The amount of additional capital we may require, the timing of our capital needs and the availability of financing to fund those needs will depend on a number of factors, including our strategic initiatives and operating plans, the performance of our business and the market conditions for debt or equity financing. Additionally, the amount of capital required will depend on our ability to meet our case sales goals and otherwise successfully execute our operating plan. We believe it is imperative to meet these sales objectives in order to lessen our reliance on external financing in the future. We intend to continually monitor and adjust our business plan as necessary to respond to developments in our business, our markets and the broader economy. Although we believe various debt and equity financing alternatives will be available to us to support our working capital needs, financing arrangements on acceptable terms may not be available to us when needed. Additionally, these alternatives may require significant cash payments for interest and other costs or could be highly dilutive to our existing shareholders. Any such financing alternatives may not provide us with sufficient funds to meet our long-term capital requirements. If necessary, we may explore strategic transactions that we consider to be in the best interest of the Company and our shareholders, which may include, without limitation, public or private offerings of debt or equity securities, a rights offering, and other strategic alternatives; however, these options may not ultimately be available or feasible.
	The uncertainties relating to our ability to successfully execute on our operating plan and the performance of our business, combined with the difficult financing environment, continue to raise substantial doubt about our ability to continue as a going concern. Our financial statements for the periods presented were prepared assuming we would continue as a going concern, which contemplates that we will continue in operation for the foreseeable future and will be able to realize assets and settle liabilities and commitments in the normal course of business. These financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that could result should we be unable to continue as a going concern.

Seasonality	'
	Seasonality
	Our sales are seasonal and we experience fluctuations in quarterly results as a result of many factors. We historically have generated a greater percentage of our revenues during the warm weather months of April through September. Timing of customer purchases will vary each year and sales can be expected to shift from one quarter to another. As a result, management believes that period-to-period comparisons of results of operations are not necessarily meaningful and should not be relied upon as any indication of future performance or results expected for the fiscal year.

Inventory_Tables

Inventory (Tables)	6 Months Ended
Inventory (Tables)	Jun. 30, 2014
Inventory [Abstract]	'
Schedule Of Inventory	'

		30-Jun-14		31-Dec-13
	Finished goods	$	2,694	$	1,455
	Raw materials		726		860
		$	3,420	$	2,315

Shareholders_Equity_Tables

Shareholders' Equity (Tables)	6 Months Ended
Shareholders' Equity (Tables)	Jun. 30, 2014
Shareholders' Equity [Abstract]	'
Summary Of Stock Option Activity	'

		Outstanding Options
		Number of Shares		Weighted Average Exercise Price
	Balance at January 1, 2014	4,227,820		$	0.44
	Options granted	555,000			0.44
	Options exercised	-424,166			0.32
	Options cancelled/expired	-126,563			0.36
	Balance at June 30, 2014	4,232,091		$	0.46
	Exercisable, June 30, 2014	2,607,656		$	0.47
	Vested and expected to vest	4,040,776		$	0.46


Summary Of Stock-Based Compensation Expense	'

		Three months ended June 30,						Six months ended June 30,
		2014			2013			2014		2013
	Type of awards:
	Stock options	$	100		$	79		$	187	$	144
	Restricted stock		—			—			—		3
		$	100		$	79		$	187	$	147
	Income statement account:
	Selling and marketing	$	8		$	21		$	18	$	32
	General and administrative		92			58			169		115
		$	100		$	79		$	187	$	147


Summary Of Weighted-Average Assumptions	'

		Six months ended June 30,
		2014				2013
	Expected dividend yield		—				—
	Expected stock price volatility		101.6	%			107.6	%
	Risk-free interest rate		1.8	%			1.0	%
	Expected term (in years)		5.5	years			5.8	years
	Weighted-average grant date fair-value	$	0.34			$	0.22

Segment_Information_Tables

Segment Information (Tables)	6 Months Ended
Segment Information (Tables)	Jun. 30, 2014
Segment Information [Abstract]	'
Schedule Of Geographic Information	'

		Three months ended June 30,				Six months ended June 30,
		2014		2013		2014		2013
	Revenue:
	United States	$	2,494	$	2,834	$	4,693	$	5,129
	Canada		1,382		1,404		1,974		2,174
	Other countries		3		49		102		80
	Total revenue	$	3,879	$	4,287	$	6,769	$	7,383

Nature_Of_Operations_And_Summa1

Nature Of Operations And Summary Of Significant Accounting Policies (Narrative) (Details) (USD $)

3 Months Ended

6 Months Ended

Jun. 30, 2014

Jun. 30, 2013

Jun. 30, 2014

Jun. 30, 2013

Dec. 31, 2013

Dec. 31, 2012

Jun. 30, 2014

Dec. 27, 2013

Jun. 30, 2014

BFI [Member]

Maximum [Member]

Common Stock [Member]

Directors And Officers [Member]

Loan Facility [Member]

BFI [Member]

Common Stock [Member]

BFI [Member]

Accounting Policies [Line Items]

Cash and cash equivalents

$519,000

$1,328,000

$519,000

$1,328,000

$1,464,000

$1,654,000

Working capital

2,900,000

Net cash used in operating activities

1,098,000

321,000

Net loss

429,000

95,000

968,000

494,000

Accumulated deficit

-58,984,000

-58,017,000

Maximum borrowing capacity

2,000,000

300,000

2,000,000

Current borrowing capacity

1,300,000

Option Exercise Date

1-Apr-14

Proceeds from exercise of stock options

$136,000

$124,000

Option Exercised

385,833

Inventory_Details

Inventory (Details) (USD $)	Jun. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Inventory [Abstract]	'	'
Finished goods	$2,694	$1,455
Raw materials	726	860
Inventory, Net	$3,420	$2,315

Line_Of_Credit_Details

Line Of Credit (Details) (USD $)

Jun. 30, 2014

Dec. 27, 2013

Jun. 30, 2014

Dec. 27, 2013

Jun. 30, 2014

Dec. 27, 2013

Aug. 06, 2014

Jul. 31, 2014

Jul. 01, 2014

Dec. 27, 2013

Jun. 30, 2014

BFI [Member]

Maximum [Member]

Minimum [Member]

Subsequent Event [Member]

United States

Canada

Loan Facility [Member]

Prime Rate [Member]

BFI [Member]

Prime Rate [Member]

Line of Credit Facility [Line Items]

Maximum borrowing capacity

$2,000,000

$300,000

$2,000,000

Percent of finished goods inventory borrowing capacity

35.00%

Monthly loan fees

0.15%

Current borrowing capacity

1,300,000

Initial LOC term

'1 year

Extended LOC term

'1 year

Written notice period

'30 days

'120 days

LOC annual fees

15,000

Line of Credit Facility, Amount Outstanding

284,000

Interest rate

2.00%

4.00%

Percent of accounts receivable borrowing capacity

85.00%

50.00%

Amount drawn on line of credit

$744,000

Warrants_Details

Warrants (Details) (Warrant [Member], USD $)	6 Months Ended
Warrants (Details) (Warrant [Member], USD $)	Jun. 30, 2014	Jun. 30, 2013	Feb. 29, 2012
Warrant [Member]	'	'	'
Class of Warrant or Right [Line Items]	'	'	'
Number of securities called by warrants, class of warrants	150,000	'	3,207,500
Warrant exercise price	$0.70	'	'
Potential additional proceeds from warrants	$2,245,250	'	'
Warrant, expiration date	6-Aug-17	'	'
Class of Warrant or Right, Outstanding	3,057,500	'	'
Exercised warrants	0	0	'

Shareholders_Equity_Stock_By_C

Shareholders' Equity (Stock By Class Narrative) (Details) (2011 Plan [Member])	6 Months Ended
	Jun. 30, 2014
Common [Member]	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'
Common stock, authorized shares	6,884,032
Common stock, authorized shares increase	1,300,000
Common stock, authorized percent increase	4.00%
Percentage of outstanding stock maximum	10.00%
Stock Options [Member]	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'
Stock option term	'10 years
Stock option vesting period	'48 months
Number of shares available	2,694,683
Cliff Vesting [Member] \| Stock Options [Member]	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'
Stock option first year cliff vesting	25.00%
Years after grant date	'1 year

Shareholders_Equity_Stock_Opti

Shareholders' Equity (Stock Option Activity) (Details) (Stock Options [Member], USD $)	6 Months Ended
	Jun. 30, 2014
Stock Options [Member]	'
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]	'
Options, Outstanding, Number, Beginning Balance	4,227,820
Options granted, Number of Shares	555,000
Options exercised, Number of Shares	-424,166
Options cancelled/expired, Number of Shares	-126,563
Options, Outstanding, Number, Ending Balance	4,232,091
Options, Exercisable, Number of Shares	2,607,656
Options, Vested and Expected to Vest, Number of Shares	4,040,776
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]	'
Options, Outstanding, Weighted Average Exercise Price, Beginning Balance	$0.44
Options granted, Weighted Average Exercise Price	$0.44
Options exercised, Weighted Average Exercise Price	$0.32
Options cancelled/expired, Weighted Average Exercise Price	$0.36
Options, Outstanding, Weighted Average Exercise Price, Ending Balance	$0.46
Options, Exercisable, Weighted Average Exercise Price	$0.47
Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price	$0.46

Shareholders_Equity_StockBased

Shareholders' Equity (Stock-Based Compensation Expense Award Types) (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'
Allocated Share-based Compensation Expense	$100,000	$79,000	$187,000	$147,000
Selling and Marketing [Member]	'	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'
Allocated Share-based Compensation Expense	8,000	21,000	18,000	32,000
General And Administrative [Member]	'	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'
Allocated Share-based Compensation Expense	92,000	58,000	169,000	115,000
Stock Options [Member]	'	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'
Unrecognized compensation	225,400	'	225,400	'
Weighted average period for unrecognized compensation expense	'	'	'2 years 2 months 12 days	'
Allocated Share-based Compensation Expense	100,000	79,000	187,000	144,000
Restricted Stock [Member]	'	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'
Allocated Share-based Compensation Expense	$0	$0	$0	$3,000

Shareholders_Equity_StockBased1

Shareholders' Equity (Stock-Based Compensation Expense Award Types Weight Avg Assumptions) (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'
Expected dividend yield	'	'	0.00%	0.00%
Expected stock price volatility	'	'	101.60%	107.60%
Risk-free interest rate	'	'	1.80%	1.00%
Expected term (in years)	'	'	'5 years 6 months	'5 years 9 months 18 days
Weighted-average grant date fair-value	'	'	$0.34	$0.22
Stock Options [Member]	'	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'
Options, Outstanding, Intrinsic Value	$612,300	$756,300	$612,300	$756,300
Options, Exercisable, Intrinsic Value	260,000	384,800	260,000	384,800
Options, Exercises in Period, Total Intrinsic Value	'	'	51,000	0
Restricted Stock [Member]	'	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'
Restricted stock, Vested in Period, Total Intrinsic Value	$0	$0	$0	$0

Segment_Information_Details

Segment Information (Details) (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
	Jun. 30, 2014	Jun. 30, 2013	segment	Jun. 30, 2013
Segment Reporting Information [Line Items]	'	'	'	'
Number of operating segments	'	'	1	'
Revenues	$3,879	$4,287	$6,769	$7,383
United States	'	'	'	'
Segment Reporting Information [Line Items]	'	'	'	'
Revenues	2,494	2,834	4,693	5,129
Canada	'	'	'	'
Segment Reporting Information [Line Items]	'	'	'	'
Revenues	1,382	1,404	1,974	2,174
Other countries	'	'	'	'
Segment Reporting Information [Line Items]	'	'	'	'
Revenues	$3	$49	$102	$80
Three Major Customers [Member]	'	'	'	'
Segment Reporting Information [Line Items]	'	'	'	'
Major Customer, percentage	37.00%	37.00%	33.00%	36.00%

Subsequent_Events_Details

Subsequent Events (Details) (USD $)	Jun. 30, 2014	Aug. 06, 2014	Jul. 31, 2014	Jul. 01, 2014
Subsequent Events (Details) (USD $)	Jun. 30, 2014	Subsequent Event [Member]	Subsequent Event [Member]	Subsequent Event [Member]
Subsequent Event [Line Items]	'	'	'	'
Amount drawn on line of credit	'	'	$744,000	$744,000
Amount outstanding	$0	$284,000	'	'