Jones Soda (JSDA) 10-Q 16 Nov 15 2015 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Nov. 02, 2015
Document And Entity Information [Abstract]
Entity Registrant Name	JONES SODA CO
Entity Central Index Key	1,083,522
Trading Symbol	jsda
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding		41,314,894

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 491	$ 857
Accounts receivable, net of allowance of $33 and $49	2,158	1,237
Inventory	3,253	2,603
Prepaid expenses and other current assets	124	121
Total current assets	6,026	4,818
Fixed assets, net of accumulated depreciation of $902 and $1,399	40	25
Other assets	21	31
Total assets	6,087	4,874
Current liabilities:
Accounts payable	2,642	1,375
Accrued expenses	816	$ 814
Line of credit	329
Taxes payable	19	$ 23
Other current liabilities	2	38
Total current liabilities	3,808	2,250
Long-term liabilities - other	14	2
Shareholders' equity:
Common stock, no par value: Authorized - 100,000,000; issued and outstanding shares - 41,314,894 and 40,972,394 shares, respectively	53,764	53,650
Additional paid-in capital	8,388	8,234
Accumulated other comprehensive income	244	295
Accumulated deficit	(60,131)	(59,557)
Total shareholders' equity	2,265	2,622
Total liabilities and shareholders' equity	$ 6,087	$ 4,874

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Current Assets:
Allowance for accounts receivable	$ 33	$ 49
Accumulated depreciation	$ 902	$ 1,399
Stockholders' Equity:
Common stock, par value	$ 0	$ 0
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	41,314,894	40,972,394
Common stock, shares outstanding	41,314,894	40,972,394

Condensed Consolidated Statemen

Condensed Consolidated Statements Of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Condensed Consolidated Statements Of Operations [Abstract]
Revenue	$ 3,763	$ 4,375	$ 10,917	$ 11,144
Cost of goods sold	2,814	3,325	8,174	8,529
Gross profit	949	1,050	2,743	2,615
Operating expenses:
Selling and marketing	501	592	1,462	1,681
General and administrative	445	635	1,599	2,023
Operating income (loss)	946	1,227	3,061	3,704
Income (loss) from operations	3	(177)	(318)	(1,089)
Other (expense) income, net	(182)	(30)	(240)	(38)
Loss before income taxes	(179)	(207)	(558)	(1,127)
Income tax expense, net	0	(26)	(17)	(74)
Net loss	$ (179)	$ (233)	$ (575)	$ (1,201)
Net loss per share - basic and diluted	$ 0	$ (0.01)	$ (0.01)	$ (0.03)
Weighted average basic and diluted common shares	41,314,894	39,850,694	41,122,357	39,215,288

Condensed Consolidated Stateme5

Condensed Consolidated Statements Of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Condensed Consolidated Statements Of Comprehensive Loss [Abstract]
Net loss	$ (179)	$ (233)	$ (575)	$ (1,201)
Other comprehensive loss:
Foreign currency translation adjustment	(78)	(45)	(51)	13
Total comprehensive loss	$ (257)	$ (278)	$ (626)	$ (1,188)

Condensed Consolidated Stateme6

Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
OPERATING ACTIVITIES:
Net loss	$ (575)	$ (1,201)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	19	154
Stock-based compensation	154	258
Change in allowance for doubtful accounts	(16)	10
Changes in operating assets and liabilities:
Accounts receivable	(867)	(1,372)
Inventory	(727)	(310)
Prepaid expenses and other current assets	(4)	264
Other assets	10	34
Accounts payable	1,270	608
Accrued expenses	53	15
Taxes payable	(14)	(4)
Other liabilities	(14)	(26)
Net cash used in operating activities	(711)	$ (1,570)
INVESTING ACTIVITIES:
Purchase of fixed assets	$ (34)
Sale of fixed assets		$ 1
Net cash (used in) provided by investing activities	$ (34)	1
FINANCING ACTIVITIES:
Proceeds from exercise of stock options	115	676
Payment of capital lease obligations	(10)	$ (10)
Net proceeds from line of credit	329
Net cash provided by financing activities	434	$ 666
Net decrease in cash and cash equivalents	(311)	(903)
Effect of exchange rate changes on cash	(55)	16
Cash and cash equivalents, beginning of period	857	1,464
Cash and cash equivalents, end of period	491	577
Supplemental disclosure:
Interest	38	10
Income taxes	$ 30	$ 32

Nature of Operations and Summar

Nature of Operations and Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2015
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 it sell s and distribute s primarily in United States and Canada through its network of independent distributors and directly to its national and regional retail accounts. 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, 2014 , which has been derived from our audited consolidated financial statements, and unaudited interim condensed consolidated financial statements as of September 30, 2015 , has 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, 2014 . Recent accounting pronouncements In May 2014, the Financial Accounting Standard Board, or FASB, issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers: Topic 606 (ASU 2014-09), which will supersede nearly all existing revenue recognition guidance under generally accepted accounting principles in the United States (GAAP). The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. ASU 2014-09 defines a five steps process to achieve this core principle and, in doing so, it is possible more judgment and estimates may be required within the revenue recognition process than required under existing GAAP including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. ASU 2014-09 will be effective for the fiscal and interim reporting periods beginning after December 15, 201 7 using either of two methods: (i) retrospective to each prior reporting period presented within the option to elect certain practical expedients as defined within ASU 2014-09; or (ii) retrospective with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application and providing certain additional disclosures as defined per ASU 2014-09. We are currently evaluating the impact of our pending adoption of ASU 2014-09 on our 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 September 30, 2015 , we had cash and cash-equivalents of approximately $ 491 ,000 and working capital of $ 2.2 million. Cash used in operations during the nine months ended September 30, 2015 totaled $ 711 ,000 compared to $ 1.6 million for the same period a year ago. The decrease in cash used in operations compared to the same period a year ago is primarily due to an increase in our gross profit as well as a decrease in operating expenses . We incurred a net loss of $ 575 ,000 for the nine months ended September 30, 2015 . As of the date of this Report, we believe that our current cash and cash equivalents , combined with our Loan Facility and anticipated cash from operations, will be sufficient to meet our anticipated cash needs through the next twelve months . O ur Loan Facility (described below), is available for our working capital needs. We have a revolving secured credit facility (the “Loan Facility”) with CapitalSource Business Finance Group ( previously known as BFI Business Finance ). 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 September 30, 2015 , our eligible borrowing base was approximately $ 1.6 million, of which we had drawn down $ 329,000 . We may use the Loan Facility for our working capital needs. The Loan Facility is available for future borrowing, as discussed further in Note 3. 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 business plan and finance our operations 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	9 Months Ended
	Sep. 30, 2015
Inventory [Abstract]
Inventory	2. Inventory Inventory consisted of the following (in thousands): September 30, 2015 December 31, 2014 Finished goods $ $ Raw materials $ $ 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	9 Months Ended
	Sep. 30, 2015
Line Of Credit [Abstract]
Line of Credit	3. Line of Credit We have a revolving secured Loan Facility with CapitalSource Business Finance Group (previously known as BFI Business Finance ) (“CapitalSource”) , 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. We originally entered into this Loan Facility on December 27, 2013 , and amended and renewed it for an additional year as of December 27, 2014. 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, in the following priority, the sum of: (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 CapitalSource . As of September 30, 2015 , our eligible borrowing base was approximately $1.6 million, of which we had drawn down $ 329,000 . Advances under the Loan Facility bear interest at the prime rate plus 2% , where prime may not be less than 4% , and a loan fee of 0.15% on the daily loan balance is payable to CapitalSource on a monthly basis . The Loan Facility, as amended in December 2014, provides for a minimum cumulative amount of interest of $30,000 per year to be paid to CapitalSource, regardless of whether or not we draw on the Loan Facility. The Loan Facility has a 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 . CapitalSource has the right to terminate the Loan Facility at any time upon 120 days’ prior written notice. All present and future obligations of the Subsidiaries arising under the Loan Facility are guaranteed by us and are secured by a first priority security interest in all of our assets. The Loan Facility contains customary representations and warranties as well as affirmative and negative covenants. As of September 30, 2015 , we were in compliance with all covenants under the Loan Facility . We drew on our Loan Facility during the quarter with a balance of $ 329,000 as of September 30, 2015 . The draws on the Loan Facility were used to fulfill short-term working capital needs to avoid foreign exchange losses from transferring funds from our Canadian operations to the U.S. operations. We will continue to utilize the Loan Facility, as needed, for working capital needs in the future.

Warrants

Warrants	9 Months Ended
	Sep. 30, 2015
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 limitations and other restrictions set forth in the warrant documents. The term of the warrants expires 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 September 30, 2015 , 3,057,500 of the warrants remain outstanding and warrants for 150,000 shares were previously exercised for cash in the quarter ended September 2013. No warrants were exercised during the nine months ended September 30, 2015 .

Shareholders' Equity

Shareholders' Equity	9 Months Ended
	Sep. 30, 2015
Shareholders' Equity [Abstract]
Shareholders' Equity	5. Shareholders’ Equity Under the terms of our 2011 Incentive Plan (the “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, 2015 , the total number of shares of common stock authorized under the Plan increased to 8,184,032 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 September 30, 2015 , there were 3,371,871 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, 2015 $ Options granted Options exercised Options cancelled/expired Balance at September 30, 2015 $ Exercisable, September 30, 2015 $ Vested and expected to vest $ (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 September 30, 2015 , we had unrecognized compensation expense related to stock options of $ 128,000 to be recognized over a weighted-average period of 2.4 years. The following table summarizes the stock-based compensation expense attributable to stock options (in thousands): Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Income statement account: Selling and marketing $ $ $ $ General and administrative $ $ $ $ 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: Nine months ended September 30, 2015 2014 Expected dividend yield — — Expected stock price volatility % % Risk-free interest rate % % Expected term (in years) years years Weighted-average grant date fair-value $ $ The aggregate intrinsic value of stock options outstanding at September 30, 2015 and 2014 was $ 120,000 and $ 150,000 and for options exercisable was $ 64,000 and $ 109,000 , respectively. Additionally, the aggregate intrinsic value of options exercised during the nine months ended September 30, 2015 and 2014 was $0 and $107,000 , 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.

Segment Information

Segment Information	9 Months Ended
	Sep. 30, 2015
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. Sales by geographic location are as follows (in thousands): Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Revenue: United States $ $ $ $ Canada Other countries Total revenue $ $ $ $ During the three months ended September 30, 2015 and 2014 , three of our customers represented approximately 23% and 43% , respectively, of revenue. During the nine months ended September 30, 2015 and 2014 , three of our customers represented approximately 17% and 36% respectively, of revenue.

Nature Of Operations And Summ13

Nature Of Operations And Summary Of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2015
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, 2014 , which has been derived from our audited consolidated financial statements, and unaudited interim condensed consolidated financial statements as of September 30, 2015 , has 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, 2014 .
Recent Accounting Pronouncements	Recent accounting pronouncements In May 2014, the Financial Accounting Standard Board, or FASB, issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers: Topic 606 (ASU 2014-09), which will supersede nearly all existing revenue recognition guidance under generally accepted accounting principles in the United States (GAAP). The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. ASU 2014-09 defines a five steps process to achieve this core principle and, in doing so, it is possible more judgment and estimates may be required within the revenue recognition process than required under existing GAAP including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. ASU 2014-09 will be effective for the fiscal and interim reporting periods beginning after December 15, 201 7 using either of two methods: (i) retrospective to each prior reporting period presented within the option to elect certain practical expedients as defined within ASU 2014-09; or (ii) retrospective with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application and providing certain additional disclosures as defined per ASU 2014-09. We are currently evaluating the impact of our pending adoption of ASU 2014-09 on our 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 September 30, 2015 , we had cash and cash-equivalents of approximately $ 491 ,000 and working capital of $ 2.2 million. Cash used in operations during the nine months ended September 30, 2015 totaled $ 711 ,000 compared to $ 1.6 million for the same period a year ago. The decrease in cash used in operations compared to the same period a year ago is primarily due to an increase in our gross profit as well as a decrease in operating expenses . We incurred a net loss of $ 575 ,000 for the nine months ended September 30, 2015 . As of the date of this Report, we believe that our current cash and cash equivalents , combined with our Loan Facility and anticipated cash from operations, will be sufficient to meet our anticipated cash needs through the next twelve months . O ur Loan Facility (described below), is available for our working capital needs. We have a revolving secured credit facility (the “Loan Facility”) with CapitalSource Business Finance Group ( previously known as BFI Business Finance ). 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 September 30, 2015 , our eligible borrowing base was approximately $ 1.6 million, of which we had drawn down $ 329,000 . We may use the Loan Facility for our working capital needs. The Loan Facility is available for future borrowing, as discussed further in Note 3. 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 business plan and finance our operations 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)	9 Months Ended
	Sep. 30, 2015
Inventory [Abstract]
Schedule Of Inventory	September 30, 2015 December 31, 2014 Finished goods $ $ Raw materials $ $

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2015
Shareholders' Equity [Abstract]
Summary Of Stock Option Activity	Outstanding Options Number of Shares Weighted Average Exercise Price Balance at January 1, 2015 $ Options granted Options exercised Options cancelled/expired Balance at September 30, 2015 $ Exercisable, September 30, 2015 $ Vested and expected to vest $
Summary Of Stock-Based Compensation Expense	Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Income statement account: Selling and marketing $ $ $ $ General and administrative $ $ $ $
Summary Of Weighted-Average Assumptions	Nine months ended September 30, 2015 2014 Expected dividend yield — — Expected stock price volatility % % Risk-free interest rate % % Expected term (in years) years years Weighted-average grant date fair-value $ $

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 30, 2015
Segment Information [Abstract]
Schedule Of Geographic Information	Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Revenue: United States $ $ $ $ Canada Other countries Total revenue $ $ $ $

Nature Of Operations And Summ17

Nature Of Operations And Summary Of Significant Accounting Policies (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2015USD ($)	Sep. 30, 2014USD ($)	Sep. 30, 2015USD ($)item	Sep. 30, 2014USD ($)	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)	Dec. 27, 2013USD ($)
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items]
Number of operating subsidiaries | item			2
Cash and cash equivalents	$ 491,000	$ 577,000	$ 491,000	$ 577,000	$ 857,000	$ 1,464,000
Working capital	2,200,000		2,200,000
Net cash used in operating activities			711,000	1,570,000
Net loss	179,000	$ 233,000	575,000	$ 1,201,000
Revolving Credit Facility [Member] | CapitalSource [Member]
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items]
Maximum borrowing capacity	2,000,000		2,000,000				$ 2,000,000
Current borrowing capacity	1,600,000		1,600,000
Amount outstanding	$ 329,000		$ 329,000

Inventory (Details)

Inventory (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Inventory [Abstract]
Finished goods	$ 2,446	$ 2,096
Raw materials	807	507
Inventory, Net	$ 3,253	$ 2,603

Line of Credit (Details)

Line of Credit (Details) - Revolving Credit Facility [Member] - CapitalSource [Member] - USD ($)	Dec. 27, 2013	Dec. 31, 2014	Sep. 30, 2015
Line of Credit Facility [Line Items]
Line of credit, Borrowing capacity description			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, in the following priority, the sum of: (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 CapitalSource
Line of credit, Interest rate description			prime rate plus 2%, where prime may not be less than 4%
Line of credit, Covenant compliance			we were in compliance with all covenants under the Loan Facility
Line of credit, Covenant terms			The Loan Facility has a 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. CapitalSource has the right to terminate the Loan Facility at any time upon 120 days' prior written notice.
Monthly loan fee, Percentage	0.15%
Annual minimum interest payment		$ 30,000
Annual fees		$ 15,000
Maximum borrowing capacity	$ 2,000,000		$ 2,000,000
Current borrowing capacity			1,600,000
Amount outstanding			$ 329,000
Interest rate above prime rate			2.00%
Minimum prime rate			4.00%
Line of credit, Initial term		1 year
Line of credit, Extended term		1 year
Written notice period		30 days
Termination period prior written notice		120 days
United States
Line of Credit Facility [Line Items]
Percent of accounts receivable borrowing capacity	85.00%
Maximium amount of accounts recievable plus finished goods inventory borrowing capacity	$ 300,000
Percent of finished goods inventory borrowing capacity	35.00%
Canada
Line of Credit Facility [Line Items]
Percent of accounts receivable borrowing capacity	50.00%
Maximium amount of accounts recievable borrowing capacity	$ 300,000

Warrants (Details)

Warrants (Details) - Warrant [Member] - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2013	Feb. 29, 2012
Class of Warrant or Right [Line Items]
Number of securities called by warrants, class of warrants			3,207,500
Warrant exercise price	$ 0.70
Potential additional proceeds from warrants	$ 2,245,250
Warrant, expiration date	Aug. 6, 2017
Class of Warrant or Right, Outstanding	3,057,500
Exercised warrants	0	150,000

Shareholders' Equity (Narrative

Shareholders' Equity (Narrative) (Details) - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Jan. 01, 2015
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation	$ 128,000
Weighted average period for unrecognized compensation expense	2 years 4 months 24 days
Options, Outstanding, Intrinsic Value	$ 120,000	$ 150,000
Options, Exercisable, Intrinsic Value	64,000	109,000
Options, Exercised, Intrinsic Value	$ 0	$ 107,000
2011 Plan [Member] | Common [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, authorized shares			8,184,032
Common stock, authorized shares increase	1,300,000
Common stock, authorized percent increase	4.00%
Percentage of outstanding stock maximum	10.00%
2011 Plan [Member] | Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option expiration period	10 years
Stock option vesting period	48 months
Number of shares available	3,371,871
2011 Plan [Member] | 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 (Summary O

Shareholders' Equity (Summary Of Stock Option Activity) (Details) - Stock Options [Member]	9 Months Ended
	Sep. 30, 2015$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Options, Outstanding, Number, Beginning Balance	2,576,987
Options granted, Number of Shares	790,000
Options exercised, Number of Shares	(342,500)
Options cancelled/expired, Number of Shares	(425,000)
Options, Outstanding, Number, Ending Balance	2,599,487
Options, Exercisable, Number of Shares	1,801,966
Options, Vested and Expected to Vest, Number of Shares	2,374,169
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 | $ / shares	$ 0.58
Options granted, Weighted Average Exercise Price | $ / shares	0.32
Options exercised, Weighted Average Exercise Price | $ / shares	0.33
Options cancelled/expired, Weighted Average Exercise Price | $ / shares	0.41
Options, Outstanding, Weighted Average Exercise Price, Ending Balance | $ / shares	0.56
Options, Exercisable, Weighted Average Exercise Price | $ / shares	0.65
Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ / shares	$ 0.58

Shareholders' Equity (Summary23

Shareholders' Equity (Summary Of Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Allocated share-based compensation expense	$ 23	$ 71	$ 154	$ 258
Selling And Marketing [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Allocated share-based compensation expense	12	16	36	34
General And Administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Allocated share-based compensation expense	$ 11	$ 55	$ 118	$ 224

Shareholders' Equity (Summary24

Shareholders' Equity (Summary Of Weighted-Average Assumptions) (Details) - $ / shares	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Shareholders' Equity [Abstract]
Expected dividend yield
Expected stock price volatility	88.10%	101.60%
Risk-free interest rate	1.60%	1.80%
Expected term (in years)	5 years 4 months 24 days	5 years 6 months
Weighted-average grant date fair-value	$ 0.24	$ 0.34

Segment Information (Details)

Segment Information (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015USD ($)customer	Sep. 30, 2014USD ($)customer	Sep. 30, 2015USD ($)segmentcustomer	Sep. 30, 2014USD ($)customer
Segment Reporting Information [Line Items]
Number of operating segments | segment			1
Number of major customers | customer	3	3	3	3
Revenue	$ 3,763	$ 4,375	$ 10,917	$ 11,144
United States
Segment Reporting Information [Line Items]
Revenue	2,721	2,672	7,567	7,365
Canada
Segment Reporting Information [Line Items]
Revenue	962	1,542	3,099	3,516
Other countries
Segment Reporting Information [Line Items]
Revenue	$ 80	$ 161	$ 251	$ 263
Three Major Customers [Member] | Sales Revenue, Net [Member]
Segment Reporting Information [Line Items]
Major Customer, percentage	23.00%	43.00%	17.00%	36.00%