Jones Soda (JSDA) 10-Q 12 May 17 2017 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2017	May 01, 2017
Document And Entity Information [Abstract]
Entity Registrant Name	JONES SODA CO
Entity Central Index Key	1,083,522
Trading Symbol	JSDA
Document Type	10-Q
Current Fiscal Year End Date	--12-31
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		41,379,373

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 554	$ 733
Accounts receivable, net of allowance of $15 and $13	2,044	2,174
Inventory	2,127	1,850
Prepaid expenses and other current assets	124	142
Total current assets	4,849	4,899
Fixed assets, net of accumulated depreciation of $557 and $922	23	25
Other assets	8	8
Total assets	4,880	4,932
Current liabilities:
Accounts payable	1,853	1,049
Line of credit	634	1,205
Accrued expenses	705	835
Taxes payable	9	26
Total current liabilities	3,201	3,115
Deferred rent	12	12
Shareholders' equity:
Common stock, no par value: Authorized — 100,000,000; issued and outstanding shares — 41,379,373 shares and 41,340,727 shares, repectively	53,788	53,772
Additional paid-in capital	8,715	8,674
Accumulated other comprehensive income	221	219
Accumulated deficit	(61,057)	(60,860)
Total shareholders' equity	1,667	1,805
Total liabilities and shareholders' equity	$ 4,880	$ 4,932

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Current assets:
Allowance for accounts receivable	$ 15	$ 13
Accumulated depreciation	$ 557	$ 922
Stockholders' equity:
Common stock, par value	$ 0	$ 0
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	41,379,373	41,340,727
Common stock, shares outstanding	41,379,373	41,340,727

Condensed Consolidated Statemen

Condensed Consolidated Statements Of Operations - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Condensed Consolidated Statements Of Operations [Abstract]
Revenue	$ 3,535	$ 4,274
Cost of goods sold	2,682	3,102
Gross profit	853	1,172
Operating expenses:
Selling and marketing	544	542
General and administrative	483	564
Operating expenses	1,027	1,106
Income (loss) from operations	(174)	66
Interest expense	(15)	(22)
Other (expense) income, net	(1)	12
Income (loss) before income taxes	(190)	56
Income tax expense, net	(7)	(7)
Net income (loss)	$ (197)	$ 49
Net income (loss) per share - basic	$ 0	$ 0
Net income (loss) per share - diluted	$ 0	$ 0
Weighted average basic common shares outstanding	41,367,662	41,314,894
Weighted average diluted common shares outstanding	41,367,662	41,628,078

Condensed Consolidated Stateme5

Condensed Consolidated Statements Of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Condensed Consolidated Statements Of Comprehensive Income (Loss) [Abstract]
Net income (loss)	$ (197)	$ 49
Other comprehensive income (loss):
Foreign currency translation adjustment gain	2	20
Total comprehensive income (loss)	$ (195)	$ 69

Condensed Consolidated Stateme6

Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
OPERATING ACTIVITIES:
Net income (loss)	$ (197)	$ 49
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization	3	4
Stock-based compensation	42	29
Change in allowance for doubtful accounts	2	11
Changes in operating assets and liabilities:
Accounts receivable	123	(561)
Inventory	(277)	(193)
Prepaid expenses and other current assets	18	8
Accounts payable	804	294
Accrued expenses	(130)	286
Taxes payable	(17)	5
Other liabilities		1
Net cash provided by (used in) operating activities	371	(67)
FINANCING ACTIVITIES:
Proceeds from exercise of stock options	16
Payment of capital lease obligations		(2)
Proceeds from line of credit, net of repayments	(571)	(6)
Net cash used in financing activities	(555)	(8)
Net decrease in cash and cash equivalents	(184)	(75)
Effect of exchange rate changes on cash	5	2
Cash and cash equivalents, beginning of period	733	772
Cash and cash equivalents, end of period	554	699
Supplemental disclosure:
Interest	15	22
Income taxes	$ 23

Nature Of Operations And Summar

Nature Of Operations And Summary Of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2017
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 the 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. (the “Subsidiaries”).  Basis of presentation and consolidation The accompanying condensed consolidated balance sheet as of December 31, 2016 , which has been derived from our audited consolidated financial statements, and unaudited interim condensed consolidated financial statements as of March 31, 2017 , 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 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, 2016 .  Liquidity As of March 31, 2017 , we had cash and cash equivalents of approximately $ 554 ,000 and working capital of $ 1.6 million. Cash provided by operations during the three months ended March 31, 2017 totaled $ 371 ,000 compared to cash used in operations of $67,000 for the same period a year ago. The increase in cash provided by operations compared to the same period a year ago is primarily due to the timing of production and certain receivables. We reported a net loss of $ 197 ,000 for the three months ended March 31, 2017 . As of the date of this Report, we believe that our current cash and cash equivalents, combined with available borrowings under our Loan Facility and anticipated cash from operations, will be sufficient to meet our anticipated cash needs through March 31, 2018 . We have a revolving secured credit facility (the “Loan Facility”) with CapitalSource Business Finance Group . The Loan Facility allows us to borrow a maximum aggregate amount of up to $ 3.2 million based on eligible accounts receivable and inventory. As of March 31, 2017 , our accounts receivable and inventory eligible borrowing base was approximately $ 1.9 million, of which we had drawn down approximately $634,000 . See Note 3 for further information. 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 available 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 that we 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 and other fluctuations 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. Sales may fluctuate materially on a quarter to quarter basis or an annual basis when we launch a new product or fill the “pipeline” of a new distribution partner or a large retail partner such as 7-Eleven. Sales results may also fluctuate based on the number of SKUs selected or removed by our distributors and retail partners through the normal course of serving consumers in the dynamic, trend-oriented beverage industry. 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.  Net income (loss) per share The computation for basic and diluted earnings per share is as follows (in thousands, except share data):    Three months ended March 31,  2017 2016  Net income (loss) $ (197) $ 49  Weighted average common shares outstanding:  Basic 41,367,662 41,314,894  Dilutive stock options - 313,184  Diluted 41,367,662 41,628,078  Net income (loss) per share:  Basic $ (0.00) $ 0.00  Diluted $ (0.00) $ 0.00   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.  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”) to supersede nearly all existing revenue recognition guidance under generally accepted accounting principles in the United States, or 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 is effective for the fiscal and interim reporting periods beginning after December 15, 2017 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. We will be required to make additional disclosures under the new guidance. However, at this time, we do not expect adoption of ASU 2014-09 will have a material impact on our consolidated financial statements.  In July 2015, FASB issued Accounting Standards Update No. 2015-11, Simplifying the Measurement of Inventory: Topic 330 (“ASU 2015-11”), to amend Topic 330, Inventory. Topic 330 currently requires an entity to measure inventory at the lower of cost or market. Market could be replacement cost, net realizable value, or net realizable value less an approximately normal profit margin. ASU 2015-11 requires that inventory measured using either the first-in, first-out, or FIFO, or average cost method be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. We will adopt ASU 2015-11 as required in our 2017 interim and annual reporting periods. We adopted ASU 2015-11 during 2017 without a material impact on our consolidated financial statements. In November 2015, FASB issued Accounting Standards Update No. 2015-17, Balance Sheet Classification of Deferred Taxes: Topic 740 (“ASU 2015-17”). Current GAAP requires the deferred taxes for each jurisdiction to be presented as a net current asset or liability and net noncurrent asset or liability. This requires a jurisdiction-by-jurisdiction analysis based on the classification of the assets and liabilities to which the underlying temporary differences relate, or, in the case of loss or credit carryforwards, based on the period in which the attribute is expected to be realized. Any valuation allowance is then required to be allocated on a pro rata basis, by jurisdiction, between current and noncurrent deferred tax assets. The new guidance requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet. As a result, each jurisdiction will now only have one net noncurrent deferred tax asset or liability. The guidance does not change the existing requirement that only permits offsetting within a jurisdiction. We adopted ASU 2015-17 during 2016 and subsequent to our adoption, all of our deferred tax assets and liabilities, along with any related valuation allowance, will be classified as noncurrent on our Consolidated Balance Sheet. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases: Topic 842 (“ASU 2016-2”), which supersedes Accounting Standards Update Topic 840, Leases. ASU 2016-2 requires lessees to recognize a lease liability and a lease asset for all leases, including operating leases, with a term greater than twelve months to its balance sheets. ASU 2016-2 also expands the required quantitative and qualitative disclosures surrounding leases. ASU 2016-2 is effective for the Company beginning January 1, 2019. Early adoption is permitted. The Company is currently evaluating the potential impact the adoption of ASU 2016-2 will have on its consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments: Credit Losses that changes the impairment model for most financial instruments, including trade receivables from an incurred loss method to a new forward-looking approach, based on expected losses. The estimate of expected credit losses will require entities to incorporate considerations of historical information, current information and reasonable and supportable forecasts. This ASU is effective for us in the first quarter of 2020 and must be adopted using a modified retrospective transition approach. The Company is currently evaluating the potential impact the adoption of ASU 2016-13 will have on its consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments that clarifies how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The ASU is effective for us in the first quarter of 2018 with early adoption permitted and must be applied retrospectively to all periods presented. The Company is currently evaluating the potential impact the adoption of ASU 2016-15 will have on its consolidated financial statements.

Inventory

Inventory	3 Months Ended
	Mar. 31, 2017
Inventory [Abstract]
Inventory	2. Inventory Inventory consisted of the following (in thousands):    March 31, 2017 December 31, 2016  Finished goods $ 1,402 $ 1,180  Raw materials 725 670  $ 2,127 $ 1,850 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	3 Months Ended
	Mar. 31, 2017
Line Of Credit [Abstract]
Line Of Credit	3. Line of Credit We have a revolving secured Loan Facility with CapitalSource Business Finance Group (“CapitalSource”) , pursuant to which we, through our Subsidiaries, may borrow a maximum aggregate amount of up to $3.2 million, subject to satisfaction of certain conditions. T he current term of the Loan Facility expires on December 27, 2017 , unless renewed. Under the Loan Facility, we may periodically request advances equal to the lesser of: (a) $3.2 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 $475,000 , plus (iii) 50% of eligible Canadian accounts receivable not to exceed $300,000 , subject to any reserve amount established by CapitalSource . As of March 31, 2017 , our accounts receivable and inventory eligible borrowing base was approximately $1.9 million, of which we had drawn down approximately $634,000 . As amended by the December 2016 renewal, advances under the Loan Facility bear interest at the prime rate plus 0.75% , where prime may not be less than 0% , and a loan fee of 0.10% on the daily loan balance is payable monthly. The Loan Facility 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. 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 March 31, 2017 , we were in compliance with all covenants under the Loan Facility . The draws on the Loan Facility were used to fulfill working capital needs . We will continue to utilize the Loan Facility, as needed, for working capital needs in the future. 

Warrants

Warrants	3 Months Ended
	Mar. 31, 2017
Warrants [Abstract]
Warrants	4. Warrants As part of our registered offering in February 2012 , 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 and in 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 (if volume weighted average trading price of our common stock as of such date exceeds $0.70 per share). As of March 31, 2017 , 3,057,500 of the warrants remain outstanding. No warrants were exercised during the three months ended March 31, 2017 . 

Shareholders' Equity

Shareholders' Equity	3 Months Ended
	Mar. 31, 2017
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, 2017 , the total number of shares of common stock authorized under the Plan increased to a total of 10,784,032 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 the remaining 75.0% vesting in equal monthly increments thereafter. As of March 31, 2017 , there were 5,023,938 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, 2017 3,663,716 $ 0.54  Options granted 315,000 0.45  Options exercised (38,646) 0.40  Balance at March 31, 2017 3,940,070 $ 0.54  Exercisable, March 31, 2017 2,771,985 $ 0.56  Vested and expected to vest 3,654,733 $ 0.54 (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 March 31, 2017 , we had unrecognized compensation expense related to stock options of $ 232,000 to be recognized over a weighted-average period of 2.6 years. The following table summarizes the stock-based compensation expense attributable to stock options (in thousands):    Three months ended March 31,  2017 2016  Income statement account:  Selling and marketing $ 16 $ 11  General and administrative 26 18  $ 42 $ 29 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:    Three months ended March 31,  2017 2016  Expected dividend yield — —  Expected stock price volatility 74.0 % 87.9 %  Risk-free interest rate 2.0 % 1.7 %  Expected term (in years) 5.2 years 6.1 years  Weighted-average grant date fair-value $ 0.28 $ 0.34 The aggregate intrinsic value of stock options outstanding at March 31, 2017 and 2016 was $ 210,000 and $ 953,000 and for options exercisable was $ 188,000 and $ 482,000 , 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. There were 38,646 options exercised during the three months ended March 31, 2017. The aggregate intrinsic value of the options exercised during the three months ended March 31, 2017 was $3,000 .

Segment Information

Segment Information	3 Months Ended
	Mar. 31, 2017
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 March 31,  2017 2016  Revenue:  United States $ 2,705 $ 3,565  Canada 681 684  Other countries 149 25  Total revenue $ 3,535 $ 4,274   During the three months ended March 31, 2017 and 2016 , three and four of our customers represented approximately 53% and 59% , respectively, of revenue.

Nature Of Operations And Summ13

Nature Of Operations And Summary Of Significant Accounting Policies (Policy)	3 Months Ended
	Mar. 31, 2017
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, 2016 , which has been derived from our audited consolidated financial statements, and unaudited interim condensed consolidated financial statements as of March 31, 2017 , 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 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, 2016 .
Liquidity	Liquidity As of March 31, 2017 , we had cash and cash equivalents of approximately $ 554 ,000 and working capital of $ 1.6 million. Cash provided by operations during the three months ended March 31, 2017 totaled $ 371 ,000 compared to cash used in operations of $67,000 for the same period a year ago. The increase in cash provided by operations compared to the same period a year ago is primarily due to the timing of production and certain receivables. We reported a net loss of $ 197 ,000 for the three months ended March 31, 2017 . As of the date of this Report, we believe that our current cash and cash equivalents, combined with available borrowings under our Loan Facility and anticipated cash from operations, will be sufficient to meet our anticipated cash needs through March 31, 2018 . We have a revolving secured credit facility (the “Loan Facility”) with CapitalSource Business Finance Group . The Loan Facility allows us to borrow a maximum aggregate amount of up to $ 3.2 million based on eligible accounts receivable and inventory. As of March 31, 2017 , our accounts receivable and inventory eligible borrowing base was approximately $ 1.9 million, of which we had drawn down approximately $634,000 . See Note 3 for further information. 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 available 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 that we 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 And Other Fluctuations	Seasonality and other fluctuations 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. Sales may fluctuate materially on a quarter to quarter basis or an annual basis when we launch a new product or fill the “pipeline” of a new distribution partner or a large retail partner such as 7-Eleven. Sales results may also fluctuate based on the number of SKUs selected or removed by our distributors and retail partners through the normal course of serving consumers in the dynamic, trend-oriented beverage industry. 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.
Net Income (Loss) Per Share	Net income (loss) per share The computation for basic and diluted earnings per share is as follows (in thousands, except share data):    Three months ended March 31,  2017 2016  Net income (loss) $ (197) $ 49  Weighted average common shares outstanding:  Basic 41,367,662 41,314,894  Dilutive stock options - 313,184  Diluted 41,367,662 41,628,078  Net income (loss) per share:  Basic $ (0.00) $ 0.00  Diluted $ (0.00) $ 0.00 
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.
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”) to supersede nearly all existing revenue recognition guidance under generally accepted accounting principles in the United States, or 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 is effective for the fiscal and interim reporting periods beginning after December 15, 2017 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. We will be required to make additional disclosures under the new guidance. However, at this time, we do not expect adoption of ASU 2014-09 will have a material impact on our consolidated financial statements.  In July 2015, FASB issued Accounting Standards Update No. 2015-11, Simplifying the Measurement of Inventory: Topic 330 (“ASU 2015-11”), to amend Topic 330, Inventory. Topic 330 currently requires an entity to measure inventory at the lower of cost or market. Market could be replacement cost, net realizable value, or net realizable value less an approximately normal profit margin. ASU 2015-11 requires that inventory measured using either the first-in, first-out, or FIFO, or average cost method be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. We will adopt ASU 2015-11 as required in our 2017 interim and annual reporting periods. We adopted ASU 2015-11 during 2017 without a material impact on our consolidated financial statements. In November 2015, FASB issued Accounting Standards Update No. 2015-17, Balance Sheet Classification of Deferred Taxes: Topic 740 (“ASU 2015-17”). Current GAAP requires the deferred taxes for each jurisdiction to be presented as a net current asset or liability and net noncurrent asset or liability. This requires a jurisdiction-by-jurisdiction analysis based on the classification of the assets and liabilities to which the underlying temporary differences relate, or, in the case of loss or credit carryforwards, based on the period in which the attribute is expected to be realized. Any valuation allowance is then required to be allocated on a pro rata basis, by jurisdiction, between current and noncurrent deferred tax assets. The new guidance requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet. As a result, each jurisdiction will now only have one net noncurrent deferred tax asset or liability. The guidance does not change the existing requirement that only permits offsetting within a jurisdiction. We adopted ASU 2015-17 during 2016 and subsequent to our adoption, all of our deferred tax assets and liabilities, along with any related valuation allowance, will be classified as noncurrent on our Consolidated Balance Sheet. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases: Topic 842 (“ASU 2016-2”), which supersedes Accounting Standards Update Topic 840, Leases. ASU 2016-2 requires lessees to recognize a lease liability and a lease asset for all leases, including operating leases, with a term greater than twelve months to its balance sheets. ASU 2016-2 also expands the required quantitative and qualitative disclosures surrounding leases. ASU 2016-2 is effective for the Company beginning January 1, 2019. Early adoption is permitted. The Company is currently evaluating the potential impact the adoption of ASU 2016-2 will have on its consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments: Credit Losses that changes the impairment model for most financial instruments, including trade receivables from an incurred loss method to a new forward-looking approach, based on expected losses. The estimate of expected credit losses will require entities to incorporate considerations of historical information, current information and reasonable and supportable forecasts. This ASU is effective for us in the first quarter of 2020 and must be adopted using a modified retrospective transition approach. The Company is currently evaluating the potential impact the adoption of ASU 2016-13 will have on its consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments that clarifies how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The ASU is effective for us in the first quarter of 2018 with early adoption permitted and must be applied retrospectively to all periods presented. The Company is currently evaluating the potential impact the adoption of ASU 2016-15 will have on its consolidated financial statements.

Nature Of Operations And Summ14

Nature Of Operations And Summary Of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2017
Nature Of Operations And Summary Of Significant Accounting Policies [Abstract]
Schedule Of Basic And Diluted Earnings Per Share	  Three months ended March 31,  2017 2016  Net income (loss) $ (197) $ 49  Weighted average common shares outstanding:  Basic 41,367,662 41,314,894  Dilutive stock options - 313,184  Diluted 41,367,662 41,628,078  Net income (loss) per share:  Basic $ (0.00) $ 0.00  Diluted $ (0.00) $ 0.00 

Inventory (Tables)

Inventory (Tables)	3 Months Ended
	Mar. 31, 2017
Inventory [Abstract]
Schedule Of Inventory	  March 31, 2017 December 31, 2016  Finished goods $ 1,402 $ 1,180  Raw materials 725 670  $ 2,127 $ 1,850 

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2017
Shareholders' Equity [Abstract]
Summary Of Stock Option Activity	  Outstanding Options  Number of Shares Weighted Average Exercise Price  Balance at January 1, 2017 3,663,716 $ 0.54  Options granted 315,000 0.45  Options exercised (38,646) 0.40  Balance at March 31, 2017 3,940,070 $ 0.54  Exercisable, March 31, 2017 2,771,985 $ 0.56  Vested and expected to vest 3,654,733 $ 0.54 
Summary Of Stock-Based Compensation Expense	  Three months ended March 31,  2017 2016  Income statement account:  Selling and marketing $ 16 $ 11  General and administrative 26 18  $ 42 $ 29 
Summary Of Weighted-Average Assumptions	  Three months ended March 31,  2017 2016  Expected dividend yield — —  Expected stock price volatility 74.0 % 87.9 %  Risk-free interest rate 2.0 % 1.7 %  Expected term (in years) 5.2 years 6.1 years  Weighted-average grant date fair-value $ 0.28 $ 0.34 

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Mar. 31, 2017
Segment Information [Abstract]
Schedule Of Geographic Information	  Three months ended March 31,  2017 2016  Revenue:  United States $ 2,705 $ 3,565  Canada 681 684  Other countries 149 25  Total revenue $ 3,535 $ 4,274 

Nature Of Operations And Summ18

Nature Of Operations And Summary Of Significant Accounting Policies (Narrative) (Details)	3 Months Ended
	Mar. 31, 2017USD ($)itemshares	Mar. 31, 2016USD ($)	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items]
Number of operating subsidiaries | item	2
Cash and cash equivalents	$ 554,000	$ 699,000	$ 733,000	$ 772,000
Working capital	1,600,000
Net cash used in operating activities	(371,000)	67,000
Net loss	$ (197,000)	$ 49,000
Warrant [Member]
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items]
Warrants outstanding, shares | shares	3,057,500
Revolving Credit Facility [Member] | CapitalSource [Member]
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items]
Maximum borrowing capacity	$ 3,200,000
Current borrowing capacity	1,900,000
Amount outstanding	$ 634,000

Nature Of Operations And Summ19

Nature Of Operations And Summary Of Significant Accounting Policies (Schedule Of Basic And Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Nature Of Operations And Summary Of Significant Accounting Policies [Abstract]
Net income (loss)	$ (197)	$ 49
Weighted average common shares outstanding:
Basic	41,367,662	41,314,894
Dilutive stock options		313,184
Diluted	41,367,662	41,628,078
Net income (loss) per share:
Basic	$ 0	$ 0
Diluted	$ 0	$ 0

Inventory (Schedule Of Inventor

Inventory (Schedule Of Inventory) (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Inventory [Abstract]
Finished goods	$ 1,402	$ 1,180
Raw materials	725	670
Inventory, Net	$ 2,127	$ 1,850

Line Of Credit (Narrative) (Det

Line Of Credit (Narrative) (Details) - Revolving Credit Facility [Member]	3 Months Ended
	Mar. 31, 2017USD ($)
Line of Credit Facility [Line Items]
Interest rate above prime rate	0.75%
Minimum annual interest requirement	$ 30,000
CapitalSource [Member]
Line of Credit Facility [Line Items]
Line of credit, Borrowing capacity description	Under the Loan Facility, we may periodically request advances equal to the lesser of: (a) $3.2 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 $475,000, plus (iii) 50% of eligible Canadian accounts receivable not to exceed $300,000, subject to any reserve amount established by CapitalSource
Line of credit, Covenant terms	As amended by the December 2016 renewal, advances under the Loan Facility bear interest at the prime rate plus 0.75%, where prime may not be less than 0%, and a loan fee of 0.10% on the daily loan balance is payable monthly. The Loan Facility 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. 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.
Maximum borrowing capacity	$ 3,200,000
Expiration date	Dec. 27, 2017
Current borrowing capacity	$ 1,900,000
Amount outstanding	$ 634,000
Loan fee, percentage	0.10%
Termination period prior written notice	120 days
Line of credit, Covenant compliance	we were in compliance with all covenants under the Loan Facility
Minimum [Member] | CapitalSource [Member] | Prime Rate [Member]
Line of Credit Facility [Line Items]
Prime rate	0.00%
United States [Member] | CapitalSource [Member]
Line of Credit Facility [Line Items]
Percent of accounts receivable borrowing capacity	85.00%
Percent of finished goods inventory borrowing capacity	35.00%
Maximum amount of accounts receivable plus finished goods inventory borrowing capacity	$ 475,000
Canada [Member] | CapitalSource [Member]
Line of Credit Facility [Line Items]
Percent of accounts receivable borrowing capacity	50.00%
Maximum amount of accounts receivable borrowing capacity	$ 300,000

Warrants (Narrative) (Details)

Warrants (Narrative) (Details) - Warrant [Member] - USD ($)	3 Months Ended
	Mar. 31, 2017	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
Warrants outstanding	3,057,500
Warrants exercised	0

Shareholders' Equity (Narrative

Shareholders' Equity (Narrative) (Details) - USD ($)	Jan. 01, 2016	Mar. 31, 2017	Jan. 01, 2017	Mar. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Intrinsic value of options exercised		$ 3,000
Exercise of stock options, shares		38,646
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense		$ 232,000
Weighted average period for unrecognized compensation expense		2 years 7 months 6 days
Options outstanding, intrinsic value		$ 210,000		$ 953,000
Options exercisable, intrinsic value		$ 188,000		$ 482,000
2011 Incentive Plan [Member] | Common [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, authorized shares			10,784,032
Common stock, authorized shares increase	1,300,000
Common stock, authorized percent increase		4.00%
Percentage of outstanding stock maximum		10.00%
2011 Incentive 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		5,023,938
2011 Incentive Plan [Member] | Tranche One [Member] | Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option cliff vesting		25.00%
2011 Incentive Plan [Member] | Tranche Two [Member] | Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option cliff vesting		75.00%
Years after grant date		1 year

Shareholders' Equity (Summary O

Shareholders' Equity (Summary Of Stock Option Activity) (Details)	3 Months Ended
	Mar. 31, 2017$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding
Options, Outstanding, Number, Beginning Balance | shares	3,663,716
Options granted, Number of Shares | shares	315,000
Options exercised, Number of Shares | shares	(38,646)
Options, Outstanding, Number, Ending Balance | shares	3,940,070
Options, Exercisable, Number of Shares | shares	2,771,985
Options, Vested and Expected to Vest, Number of Shares | shares	3,654,733
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price
Options, Outstanding, Weighted Average Exercise Price, Beginning Balance | $ / shares	$ 0.54
Options granted, Weighted Average Exercise Price | $ / shares	0.45
Options exercised, Weighted Average Exercise Price | $ / shares	0.40
Options, Outstanding, Weighted Average Exercise Price, Ending Balance | $ / shares	0.54
Options, Exercisable, Weighted Average Exercise Price | $ / shares	0.56
Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ / shares	$ 0.54

Shareholders' Equity (Summary25

Shareholders' Equity (Summary Of Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	$ 42	$ 29
Selling And Marketing [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	16	11
General And Administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	$ 26	$ 18

Shareholders' Equity (Summary26

Shareholders' Equity (Summary Of Weighted-Average Assumptions) (Details) - $ / shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Shareholders' Equity [Abstract]
Expected dividend yield
Expected stock price volatility	74.00%	87.90%
Risk-free interest rate	2.00%	1.70%
Expected term (in years)	5 years 2 months 12 days	6 years 1 month 6 days
Weighted-average grant date fair-value	$ 0.28	$ 0.34

Segment Information (Narrative)

Segment Information (Narrative) (Details)	3 Months Ended
	Mar. 31, 2017segmentcustomer	Mar. 31, 2016customer
United States And Canada [Member]
Segment Reporting Information [Line Items]
Number of operating segments | segment	1
Revenue [Member] | Four Major Customers [Member]
Segment Reporting Information [Line Items]
Number of major customers		4
Major customer, percentage		59.00%
Revenue [Member] | Three Major Customers [Member]
Segment Reporting Information [Line Items]
Number of major customers	3
Major customer, percentage	53.00%

Segment Information (Schedule O

Segment Information (Schedule Of Geographic Information) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Segment Reporting Information [Line Items]
Total revenue	$ 3,535	$ 4,274
Total fixed assets	23		$ 25
United States [Member]
Segment Reporting Information [Line Items]
Total revenue	2,705	3,565
Canada [Member]
Segment Reporting Information [Line Items]
Total revenue	681	684
Other Countries [Member]
Segment Reporting Information [Line Items]
Total revenue	$ 149	$ 25