Jones Soda (JSDA) 10-Q 10 Nov 22 2022 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2022	Nov. 08, 2022
Document Information [Line Items]
Entity Central Index Key	0001083522
Entity Registrant Name	JONES SODA CO
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2022
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2022
Document Transition Report	false
Entity File Number	000-28820
Entity Incorporation, State or Country Code	WA
Entity Tax Identification Number	52-2336602
Entity Address, Address Line One	4786 1st Avenue South, Suite 103
Entity Address, City or Town	Seattle
Entity Address, State or Province	WA
Entity Address, Postal Zip Code	98134
City Area Code	206
Local Phone Number	624-3357
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		101,433,135

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 8,202	$ 4,667
Accounts receivable, net of allowance of $108 and $114, respectively	3,921	2,662
Inventory	2,542	1,923
Prepaid expenses and other current assets	786	358
Total current assets	15,451	9,610
Fixed assets, net of accumulated depreciation of $386 and $627, respectively	208	238
Right-of-use lease asset	0	365
Other assets	8	33
Total assets	15,667	10,246
Current liabilities:
Accounts payable	1,084	1,239
Accrued expenses	1,500	1,544
Lease liability, current portion	0	109
Taxes payable	11	8
Current portion of accrued interest expense	0	55
Total current liabilities	2,595	3,585
Net convertible subordinated notes payable, net of current portion	0	1,778
Lease liability, net of current portion	0	266
Total liabilities	2,595	5,629
Shareholders’ equity:
Common stock, no par value: Authorized — 800,000,000 issued and outstanding shares — 101,433,135 shares and 67,840,941 shares, respectively	89,377	76,017
Accumulated other comprehensive income	268	396
Accumulated deficit	(76,573)	(71,796)
Total shareholders’ equity	13,072	4,617
Total liabilities and shareholders’ equity	15,667	10,246
Convertible Subordinated Notes Payable [Member]
Current liabilities:
Convertible notes payable	0	92
Contingent Convertible Debentures [Member]
Current liabilities:
Convertible notes payable	$ 0	$ 538

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ / shares in Thousands	Sep. 30, 2022	Dec. 31, 2021
Accounts receivable, allowance	$ 108,000	$ 114,000
Fixed assets, accumulated depreciation	$ 386,000	$ 627,000
Common stock, no par value (in dollars per share)	$ 0	$ 0
Common stock, shares authorized (in shares)	800,000,000	800,000,000
Common stock, shares issued (in shares)	101,433,135	67,840,941
Common stock, shares outstanding (in shares)	101,433,135	67,840,941

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Revenue	$ 4,806	$ 4,565	$ 15,344	$ 11,880
Cost of goods sold	3,515	3,102	11,129	8,255
Gross profit	1,291	1,463	4,215	3,625
Operating expenses:
Selling and marketing	1,508	733	3,727	2,104
General and administrative	1,476	716	4,880	2,147
Total operating expenses	2,984	1,449	8,607	4,251
Income (loss) from operations	(1,693)	14	(4,392)	(626)
Interest income	1	1	5	3
Interest expense	0	(76)	(377)	(160)
Other income, net	22	10	11	338
Loss before income taxes	(1,670)	(51)	(4,753)	(445)
Income tax expense, net	(8)	(8)	(24)	(24)
Net loss	$ (1,678)	$ (59)	$ (4,777)	$ (469)
Net loss per share - basic and diluted (in dollars per share)	$ (0.02)	$ 0	$ (0.05)	$ (0.01)
Weighted average common shares outstanding - basic and diluted (in shares)	99,913,135	64,550,554	91,709,456	63,857,185

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Net loss	$ (1,678)	$ (59)	$ (4,777)	$ (469)
Other comprehensive loss:
Foreign currency translation adjustment	(107)	(65)	(128)	(22)
Total comprehensive loss	$ (1,785)	$ (124)	$ (4,905)	$ (491)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands	Common Stock Including Additional Paid in Capital [Member]	AOCI Attributable to Parent [Member]	Retained Earnings [Member]	Total
Balance (in shares) at Dec. 31, 2020	61,975,748
Balance at Dec. 31, 2020	$ 73,953	$ 411	$ (69,985)	$ 4,379
Stock-based compensation	$ 107	0	0	107
Common stock issuance on conversion of notes payable (in shares)	5,064,137
Common stock issuance on conversion of notes payable	$ 1,620	0	0	$ 1,620
Exercise of stock options (in shares)	797,306			797,306
Exercise of stock options	$ 296	0	0	$ 296
Net loss	0	0	(469)	(469)
Other comprehensive loss	0	(22)	0	(22)
Beneficial conversion feature on paid-in-kind interest	$ 3	0	0	3
Balance (in shares) at Sep. 30, 2021	67,837,191
Balance at Sep. 30, 2021	$ 75,979	389	(70,454)	5,914
Balance (in shares) at Jun. 30, 2021	64,977,677
Balance at Jun. 30, 2021	$ 75,015	454	(70,395)	5,074
Stock-based compensation	$ 26	0	0	26
Common stock issuance on conversion of notes payable (in shares)	2,216,479
Common stock issuance on conversion of notes payable	$ 709	0	0	709
Exercise of stock options (in shares)	643,035
Exercise of stock options	$ 229	0	0	229
Net loss	0	0	(59)	(59)
Other comprehensive loss	$ 0	(65)	0	(65)
Balance (in shares) at Sep. 30, 2021	67,837,191
Balance at Sep. 30, 2021	$ 75,979	389	(70,454)	$ 5,914
Balance (in shares) at Dec. 31, 2021	67,840,941			67,840,941
Balance at Dec. 31, 2021	$ 76,017	396	(71,796)	$ 4,617
Stock-based compensation	$ 1,060	0	0	1,060
Common stock issuance on conversion of notes payable (in shares)	10,472,146
Common stock issuance on conversion of notes payable	$ 5,148	0	0	$ 5,148
Exercise of stock options (in shares)				0
Net loss	0	0	(4,777)	$ (4,777)
Other comprehensive loss	$ 0	(128)	0	(128)
Stock-based compensation (in shares)	3,120,000
Common stock and warrants issued, net of closing costs of $848 (in shares)	20,000,048
Common stock and warrants issued, net of closing costs of $848	$ 7,152	0	0	$ 7,152
Balance (in shares) at Sep. 30, 2022	101,433,135			101,433,135
Balance at Sep. 30, 2022	$ 89,377	268	(76,573)	$ 13,072
Balance (in shares) at Jun. 30, 2022	98,393,135
Balance at Jun. 30, 2022	$ 88,703	375	(74,895)	14,183
Stock-based compensation	674	0	0	$ 674
Exercise of stock options (in shares)				0
Net loss	0	0	(1,678)	$ (1,678)
Other comprehensive loss	$ 0	(107)	0	$ (107)
Stock-based compensation (in shares)	3,040,000
Balance (in shares) at Sep. 30, 2022	101,433,135			101,433,135
Balance at Sep. 30, 2022	$ 89,377	$ 268	$ (76,573)	$ 13,072

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Shareholders' Equity (Unaudited) (Parentheticals) $ in Thousands	9 Months Ended
	Sep. 30, 2022 USD ($)
Net of closing costs	$ 848

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
OPERATING ACTIVITIES:
Net loss	$ (1,678,000)	$ (59,000)	$ (4,777,000)	$ (469,000)
Adjustments to reconcile net loss to net cash flows from operating activities:
Depreciation and amortization			399,000	142,000
Stock-based compensation			1,060,000	107,000
Change in allowance for doubtful accounts			(6,000)	6,000
Forgiveness of PPP SBA loan			0	(335,000)
Loss on sale of fixed asset			0	5,000
Gain on insurance claim			(23,000)	0
Changes in operating assets and liabilities:
Accounts receivable			(1,314,000)	(1,142,000)
Inventory			(633,000)	374,000
Prepaid expenses and other current assets			(428,000)	(80,000)
Other assets			25,000	0
Accounts payable			(152,000)	186,000
Accrued expenses			(66,000)	495,000
Taxes payable			4,000	6,000
Other liabilities			(10,000)	3,000
Net cash used in operating activities			(5,921,000)	(702,000)
INVESTING ACTIVITIES:
Proceeds from insurance claim on property damage			31,000	0
Sale of fixed assets			0	4,000
Purchase of fixed assets			(29,000)	(35,000)
Net cash from investing activities			2,000	(31,000)
FINANCING ACTIVITIES:
Proceeds from exercise of stock options	0	228,000	0	295,000
Proceeds from issuance of common stock and warrants, net			7,152,000	0
Net cash provided by financing activities			9,506,000	2,036,000
Net change in cash and cash equivalents			3,587,000	1,303,000
Effect of exchange rate changes on cash			(52,000)	5,000
Cash and cash equivalents, beginning of period			4,667,000	4,614,000	$ 4,614,000
Cash and cash equivalents, end of period	$ 8,202,000	$ 5,922,000	8,202,000	5,922,000	$ 4,667,000
Supplemental disclosure:
Interest			47,000	0
Income taxes			16,000	12,000
Supplemental disclosure of non-cash transactions:
Conversion of notes payable			5,147,000	911,000
Beneficial conversion feature on convertible notes and accrued interest			0	3,000
Convertible Subordinated Notes Payable [Member]
FINANCING ACTIVITIES:
Proceeds from issuance of convertible notes			$ 2,354,000	$ 1,741,000

Note 1 - Nature of Operations a

Note 1 - Nature of Operations and Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2022
Notes to Financial Statements
Significant Accounting Policies [Text Block]	1. Nature of Operations and Summary of Significant Accounting Policies Jones Soda Co. develops, produces, markets and distributes premium beverages which it sells and distributes primarily in the United States and Canada through its network of independent distributors and directly to its national and regional retail accounts. In addition, following the closing of the Plan of Arrangement, we intend to use the proceeds from our recent financings exclusively for the purpose of expanding our business to the production of cannabis-containing beverages and related products. We are a Washington corporation and have four Basis of presentation, consolidation and use of estimates The accompanying condensed consolidated balance sheet as of December 31, 2021, September 30, 2022, In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all material adjustments, consisting only of those of a normal and 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. Preparing financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses. Significant items subject to such estimates and assumptions include, but are not not 10 December 31, 2021. Liquidity As of September 30, 2022 December 31 2021, nine September 30, 2022 2021 nine September 30, 2022. During the nine September 30, 2022, 4 May 16, 2022. Additionally, upon the consummation of a statutory plan of arrangement under the Business Corporations Act (British Columbia) (the “Plan of Arrangement”) with Pinestar Gold Inc. (“Pinestar”) the Company received $7.1 million in net proceeds from a subscription receipt offering completed by Pinestar (the “Pinestar Subscription Receipt Offering”) prior to the Plan of Arrangement. The Plan of Arrangement resulted in issuance of an aggregate of 20,000,048 shares of the Company’s common stock (the “Jones Shares”) which were issued in exchange for all ofthe outstanding common shares of Pinestar (the “Pinestar Shares”), including the Pinestar Shares issued in connection with the Pinestar Subscription Receipt Offering, on a one one During the three nine September 30, 2022, three nine September 30, 2021, may may We intend to continually monitor and adjust our operating plan as necessary to respond to developments in our business, our markets and the broader economy. In addition, the continuation of the COVID- 19 may may As of the date of this Report, as a result of our cash on hand, we believe that our current cash and cash equivalents will be sufficient to meet the Company’s funding requirements for one 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 September. may may not not Revenue recognition Our contracts have a single performance obligation which is satisfied at the point in time when the customer has title and the significant risks and rewards of ownership of the product. Title and the significant risk and rewards of ownership are deemed to transfer when products are loaded onto a truck for shipment or Free on Board (“FOB”) shipping point. We primarily receive fixed consideration for sales of product, subject to adjustment as described below. Shipping and handling amounts paid by customers are primarily for online orders, and are included in revenue, and totaled $34,000 and $36,000 for the three September 30, 2022 2021, nine September 30, 2022 2021, See Note 1, 10 March 14, 2022 Revenue is recorded net of provisions for discounts, slotting fees payable by us to retailers to stock our products and promotion allowances. Discounts, slotting fees and promotional allowances vary the consideration we are entitled to in exchange for the sale of products to distributors. We estimate these discounts, slotting fees and promotional allowances in the same period that the revenue is recognized for product sales to customers. These estimates are based on contract terms and our historical experience with similar programs and require management judgement with respect to estimating customer participation and performance levels. Differences between estimated expense and actual costs are normally insignificant and are recognized in earnings in the period such differences are determined. The amount of revenue recognized represents the amount that will not September 30, 2022 2021, nine September 30, 2022 2021, All sales to distributors and customers are generally final. In limited instances we may not 30 15 The accounts receivable balance primarily includes balances from trades sales to distributors and retail customers. The allowance for doubtful accounts is the best estimate of the amount of probable credit losses in existing accounts receivable. We determine the allowance for doubtful accounts based primarily on historical write-off experience. Account balances that are deemed uncollectible are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. Allowances for doubtful accounts of $108,000 and $114,000 as of September 30, 2022 December 31, 2021, No nine September 30, 2022 December 31, 2021. As of September 30, 2022, December 31, 2021, Net loss per share Basic net loss per share is computed using the weighted average number of common shares outstanding during the periods. Diluted earnings per share is computed by adjusting the weighted average number of common shares by the effective net exercise or conversion of all dilutive securities. Due to the net loss in the three nine September 30, 2022, three nine September 30, 2021, 4 4 Recent accounting pronouncements In August 2020, 2020 06, 2020 06” December 15, 2023, 2020 06 In June 2016, 2016 13, 2016 13” first 2023 2016 13

Note 2 - Inventory

Note 2 - Inventory	9 Months Ended
	Sep. 30, 2022
Notes to Financial Statements
Inventory Disclosure [Text Block]	2. Inventory Inventory consisted of the following (in thousands): September 30, 2022 December 31, 2021 Finished goods $ 1,205 $ 1,361 Raw materials 1,337 562 $ 2,542 $ 1,923 Finished goods primarily include product ready for shipment, as well as promotional merchandise held for sale. Raw materials primarily include ingredients, concentrate and packaging. For the three September 30, 2022 2021, nine September 30, 2022 2021,

Note 3 - Lease Obligations

Note 3 - Lease Obligations	9 Months Ended
	Sep. 30, 2022
Notes to Financial Statements
Lessee, Operating Leases [Text Block]	3. Lease Obligations During the three September 30, 2022 five February 2020, February 28, 2025. On September 1, 2022 not not not 12 During the quarters ended September 30, 2022 2021, nine September 30, 2022 2021, September 30, 2022,

Note 4 - Convertible Debentures

Note 4 - Convertible Debentures	9 Months Ended
	Sep. 30, 2022
Notes to Financial Statements
Convertible Subordinated Notes Payable [Text Block]	4. Convertible Debentures 2018 On March 23, 2018, April 18, 2018, “2018 The 2018 four March 23, 2022, April 18, 2022. 2018 2018 $0.32 No The 2018 The fair value of our common stock on the March 23, 2018, 2018 2018 April 18, 2018, 2018 not 2018 March 23, 2018 2018 2018 April 18, 2022 2018 September 30, 2022 2021 On July 14, 2021, July 14, 2023 ( “2021 1 one one one 2021 1 December 31, 2021. The closing of the Plan of Arrangement resulted in the automatic conversion of the 2021 2021 2022 On February 9, 2022, February 9, 2023 ( $0.50 May 16, 2022. February 9, 2023 ( 3.00% April 1, 2022. December 31, 2021 $3,000,000 March 31, 2022. May 16, 2022 September 30, 2022

Note 5 - Shareholders' Equity

Note 5 - Shareholders' Equity	9 Months Ended
	Sep. 30, 2022
Notes to Financial Statements
Stockholders' Equity Note Disclosure [Text Block]	5. Shareholders Equity On May 16, 2022, 2022 "2022 2011 2022 2022 2011 2011 2022 1,936,074 shares of common stock reserved under the terms of our 2011 “2011 2022 Under the terms of the 2022 may ten September 30, 2022, (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, 2022 3,405,511 $ 0.38 Options granted 665,648 0.54 Options forfeited/expired (834,327 ) 0.41 Balance at September 30, 2022 3,236,832 $ 0.41 Exercisable, September 30, 2022 2,385,258 $ 0.32 Vested and expected to vest 2,996,512 $ 0.39 Outstanding Options Number of Shares Weighted Average Exercise Price Balance at January 1, 2021 3,589,783 $ 0.36 Options granted 1,003,450 0.36 Options exercised (797,306 ) 0.37 Options forfeited/expired (596,354 ) 0.49 Balance at September 30, 2021 3,199,573 $ 0.33 Exercisable, September 30, 2021 1,685,462 $ 0.37 Vested and expected to vest 2,748,575 $ 0.34 (b) Restricted stock awards: Beginning on May 13, 2022 2022 January 1, 2020 February 15, 2022, first first January February 15, 2022, first $25,000 first first 2022 2011 2022 A summary of our restricted stock activity is as follows: Restricted Shares Weighted-Average Grant Date Fair Value per share Weighted-Average Contractual Life (years) Non-vested restricted stock at January 1, 2022 - $ - - Granted 4,920,000 0.20 9.9 Vested (1,240,000 ) 0.20 Cancelled/expired (350,000 ) 0.20 Non-vested restricted stock at September 30, 2022 3,330,000 $ 0.20 9.7 (c) Stock-based compensation expense: Stock-based compensation expense is recognized using the straight-line attribution method over the employees’ requisite service period, or the non-employee's service period based on the term of the contract. 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 attrition. If the actual number of forfeitures differs from those estimated by management, additional adjustments to stock-based compensation expense may At September 30, 2022, The following table summarizes the stock-based compensation expense (in thousands): Three months ended September 30, Nine months ended September 30, 2022 2022 2021 2022 2021 Stock options $ 24 $ 26 $ 316 $ 107 Restricted stock 650 - 744 - $ 674 $ 26 $ 1,060 $ 107 Income statement account: Selling and marketing $ 534 $ 5 $ 643 $ 30 General and administrative 140 21 417 77 $ 674 $ 26 $ 1,060 $ 107 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, 2022 2022 2021 Expected dividend yield — — Expected stock price volatility 78.4 % 73.9 % Risk-free interest rate 1.7 % 0.7 % Expected term (in years) 5.9 5.8 Weighted-average grant date fair-value $ 0.36 $ 1.23 The aggregate intrinsic value of stock options outstanding at September 30, 2022 three nine September 30, 2022. nine September 30, 2021. (c) Closing of the Pinestar Gold Inc. - Plan of Arrangement: On February 15, 2022, one one In connection with the Plan of Arrangement, Pinestar completed the Pinestar Subscription Receipt Offering for aggregate net proceeds of $7,152,000, at a price per subscription receipt equal to $0.50. As part of the closing of the Plan of Arrangement, each such subscription receipt automatically converted into one one 1:1 The issuance of Jones Shares to the holders of Pinestar Shares (including Pinestar Shares received upon the conversion of the subscription receipts issued in the Pinestar Subscription Receipt Offering) in the Plan of Arrangement was exempt from the registration requirements under the United States Securities Act of 1933, 3 10 one

Note 6 - Segment Information

Note 6 - Segment Information	9 Months Ended
	Sep. 30, 2022
Notes to Financial Statements
Segment Reporting Disclosure [Text Block]	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, 2022 2021 2022 2021 Revenue: United States $ 3,746 $ 3,496 $ 12,187 $ 8,978 Canada 1,021 1,033 3,055 2,808 Other countries 39 36 102 94 Total revenue $ 4,806 $ 4,565 $ 15,344 $ 11,880 During the three September 30, 2022 2021, nine September 30, 2022 2021,

Significant Accounting Policies

Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
Basis of Accounting, Policy [Policy Text Block]	Basis of presentation, consolidation and use of estimates The accompanying condensed consolidated balance sheet as of December 31, 2021, September 30, 2022, In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all material adjustments, consisting only of those of a normal and 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. Preparing financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses. Significant items subject to such estimates and assumptions include, but are not not 10 December 31, 2021.
Going Concern [Policy Text Block]	Liquidity As of September 30, 2022 December 31 2021, nine September 30, 2022 2021 nine September 30, 2022. During the nine September 30, 2022, 4 May 16, 2022. Additionally, upon the consummation of a statutory plan of arrangement under the Business Corporations Act (British Columbia) (the “Plan of Arrangement”) with Pinestar Gold Inc. (“Pinestar”) the Company received $7.1 million in net proceeds from a subscription receipt offering completed by Pinestar (the “Pinestar Subscription Receipt Offering”) prior to the Plan of Arrangement. The Plan of Arrangement resulted in issuance of an aggregate of 20,000,048 shares of the Company’s common stock (the “Jones Shares”) which were issued in exchange for all ofthe outstanding common shares of Pinestar (the “Pinestar Shares”), including the Pinestar Shares issued in connection with the Pinestar Subscription Receipt Offering, on a one one During the three nine September 30, 2022, three nine September 30, 2021, may may We intend to continually monitor and adjust our operating plan as necessary to respond to developments in our business, our markets and the broader economy. In addition, the continuation of the COVID- 19 may may As of the date of this Report, as a result of our cash on hand, we believe that our current cash and cash equivalents will be sufficient to meet the Company’s funding requirements for one
Seasonal Nature of Business [Policy Text Block]	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 September. may may not not
Revenue from Contract with Customer [Policy Text Block]	Revenue recognition Our contracts have a single performance obligation which is satisfied at the point in time when the customer has title and the significant risks and rewards of ownership of the product. Title and the significant risk and rewards of ownership are deemed to transfer when products are loaded onto a truck for shipment or Free on Board (“FOB”) shipping point. We primarily receive fixed consideration for sales of product, subject to adjustment as described below. Shipping and handling amounts paid by customers are primarily for online orders, and are included in revenue, and totaled $34,000 and $36,000 for the three September 30, 2022 2021, nine September 30, 2022 2021, See Note 1, 10 March 14, 2022 Revenue is recorded net of provisions for discounts, slotting fees payable by us to retailers to stock our products and promotion allowances. Discounts, slotting fees and promotional allowances vary the consideration we are entitled to in exchange for the sale of products to distributors. We estimate these discounts, slotting fees and promotional allowances in the same period that the revenue is recognized for product sales to customers. These estimates are based on contract terms and our historical experience with similar programs and require management judgement with respect to estimating customer participation and performance levels. Differences between estimated expense and actual costs are normally insignificant and are recognized in earnings in the period such differences are determined. The amount of revenue recognized represents the amount that will not September 30, 2022 2021, nine September 30, 2022 2021, All sales to distributors and customers are generally final. In limited instances we may not 30 15 The accounts receivable balance primarily includes balances from trades sales to distributors and retail customers. The allowance for doubtful accounts is the best estimate of the amount of probable credit losses in existing accounts receivable. We determine the allowance for doubtful accounts based primarily on historical write-off experience. Account balances that are deemed uncollectible are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. Allowances for doubtful accounts of $108,000 and $114,000 as of September 30, 2022 December 31, 2021, No nine September 30, 2022 December 31, 2021. As of September 30, 2022, December 31, 2021,
Earnings Per Share, Policy [Policy Text Block]	Net loss per share Basic net loss per share is computed using the weighted average number of common shares outstanding during the periods. Diluted earnings per share is computed by adjusting the weighted average number of common shares by the effective net exercise or conversion of all dilutive securities. Due to the net loss in the three nine September 30, 2022, three nine September 30, 2021, 4 4
New Accounting Pronouncements, Policy [Policy Text Block]	Recent accounting pronouncements In August 2020, 2020 06, 2020 06” December 15, 2023, 2020 06 In June 2016, 2016 13, 2016 13” first 2023 2016 13

Note 2 - Inventory (Tables)

Note 2 - Inventory (Tables)	9 Months Ended
	Sep. 30, 2022
Notes Tables
Schedule of Inventory, Current [Table Text Block]	September 30, 2022 December 31, 2021 Finished goods $ 1,205 $ 1,361 Raw materials 1,337 562 $ 2,542 $ 1,923

Note 5 - Shareholders' Equity (

Note 5 - Shareholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2022
Notes Tables
Share-Based Payment Arrangement, Option, Activity [Table Text Block]	Outstanding Options Number of Shares Weighted Average Exercise Price Balance at January 1, 2022 3,405,511 $ 0.38 Options granted 665,648 0.54 Options forfeited/expired (834,327 ) 0.41 Balance at September 30, 2022 3,236,832 $ 0.41 Exercisable, September 30, 2022 2,385,258 $ 0.32 Vested and expected to vest 2,996,512 $ 0.39 Outstanding Options Number of Shares Weighted Average Exercise Price Balance at January 1, 2021 3,589,783 $ 0.36 Options granted 1,003,450 0.36 Options exercised (797,306 ) 0.37 Options forfeited/expired (596,354 ) 0.49 Balance at September 30, 2021 3,199,573 $ 0.33 Exercisable, September 30, 2021 1,685,462 $ 0.37 Vested and expected to vest 2,748,575 $ 0.34
Nonvested Restricted Stock Shares Activity [Table Text Block]	Restricted Shares Weighted-Average Grant Date Fair Value per share Weighted-Average Contractual Life (years) Non-vested restricted stock at January 1, 2022 - $ - - Granted 4,920,000 0.20 9.9 Vested (1,240,000 ) 0.20 Cancelled/expired (350,000 ) 0.20 Non-vested restricted stock at September 30, 2022 3,330,000 $ 0.20 9.7
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block]	Three months ended September 30, Nine months ended September 30, 2022 2022 2021 2022 2021 Stock options $ 24 $ 26 $ 316 $ 107 Restricted stock 650 - 744 - $ 674 $ 26 $ 1,060 $ 107 Income statement account: Selling and marketing $ 534 $ 5 $ 643 $ 30 General and administrative 140 21 417 77 $ 674 $ 26 $ 1,060 $ 107
Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]	Nine months ended September 30, 2022 2022 2021 Expected dividend yield — — Expected stock price volatility 78.4 % 73.9 % Risk-free interest rate 1.7 % 0.7 % Expected term (in years) 5.9 5.8 Weighted-average grant date fair-value $ 0.36 $ 1.23

Note 6 - Segment Information (T

Note 6 - Segment Information (Tables)	9 Months Ended
	Sep. 30, 2022
Notes Tables
Revenue from External Customers by Geographic Areas [Table Text Block]	Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 Revenue: United States $ 3,746 $ 3,496 $ 12,187 $ 8,978 Canada 1,021 1,033 3,055 2,808 Other countries 39 36 102 94 Total revenue $ 4,806 $ 4,565 $ 15,344 $ 11,880

Note 1 - Nature of Operations_2

Note 1 - Nature of Operations and Summary of Significant Accounting Policies (Details Textual)			3 Months Ended		9 Months Ended		12 Months Ended
	May 16, 2022 shares	Feb. 15, 2022 shares	Sep. 30, 2022 USD ($) shares	Sep. 30, 2021 USD ($) shares	Sep. 30, 2022 USD ($) shares	Sep. 30, 2021 USD ($) shares	Dec. 31, 2021 USD ($)
Number of Wholly-Owned Operating Subsidiaries			4		4
Cash and Cash Equivalents, at Carrying Value, Total			$ 8,202,000		$ 8,202,000		$ 4,667,000
Working Capital (Deficit)			12,900,000		12,900,000		6,000,000
Net Cash Provided by (Used in) Operating Activities, Total					(5,921,000)	$ (702,000)
Proceeds from Stock Options Exercised			0	$ 228,000	0	295,000
Revenues, Total			4,806,000	4,565,000	15,344,000	11,880,000
Slotting Fees and Promotional Allowances			$ 397,000	$ 377,000	$ 1,200,000	$ 1,200,000
Maximum Discount for Customers, Payment Made Within 15 Days			2%		2%
Accounts Receivable, Allowance for Credit Loss, Current			$ 108,000		$ 108,000		$ 114,000
Share-Based Payment Arrangement, Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | shares			3,236,832	3,199,573	3,236,832	3,199,573
Convertible Debt Securities [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | shares				416,341		4,000,000
Customer Concentration Risk [Member] | Accounts Receivable [Member]
Number of Major Customers					2		1
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Two Customers [Member]
Concentration Risk, Percentage					27%
Customer Concentration Risk [Member] | Accounts Receivable [Member] | One Customer [Member]
Concentration Risk, Percentage							19%
Shipping and Handling [Member]
Revenues, Total			$ 34,000	$ 36,000	$ 120,000	$ 91,000
Contingent Convertible Debentures [Member]
Debt Instrument, Face Amount			$ 3,000,000		3,000,000
Debt Conversion, Converted Instrument, Shares Issued (in shares) | shares	6,022,192
Pinestar Subscription Receipt Offering [Member]
Proceeds from a Subscription Receipt, Net					$ 7,100,000
Stock Issued During Period, Shares, New Issues (in shares) | shares		20,000,048

Note 2 - Inventory (Details Tex

Note 2 - Inventory (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Inventory Write-down	$ 16,000	$ 9,000	$ 37,000	$ 25,000

Note 2 - Inventory - Inventory

Note 2 - Inventory - Inventory (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Finished goods	$ 1,205	$ 1,361
Raw materials	1,337	562
Inventory, Net, Total	$ 2,542	$ 1,923

Note 3 - Lease Obligations (Det

Note 3 - Lease Obligations (Details Textual)	3 Months Ended		9 Months Ended
	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Sep. 01, 2022 USD ($)	Jun. 30, 2022 ft²	Dec. 31, 2021 USD ($)	Feb. 28, 2020 USD ($)
Operating Lease, Right-of-Use Asset	$ 0		$ 0				$ 365,000
Nonoperating Income (Expense), Total	22,000	$ 10,000	11,000	$ 338,000
Operating Lease, Expense	21,000	$ 42,000	$ 109,000	$ 122,000
Retail / Office Space in Seattle, Washington [Member]
Area of Real Estate Property (Square Foot) | ft²						6,500
Lessee, Operating Lease, Term of Contract (Year)								5 years
Operating Lease, Right-of-Use Asset								$ 556,000
Lessee, Operating Lease, Discount Rate								4%
Operating Lease, Right-of-use Asset, Terminated	310,000
Operating Lease, Liability, Terminated	322,000
Nonoperating Income (Expense), Total	12,000
Lessee, Operating Lease, Termination Fee	41,000
Shared Office and Warehouse Facility in Seattle, WA [Member]
Lessee, Operating Lease, Term of Contract (Year)					1 year
Lessee, Operating Lease, Monthly Rent					$ 6,000
Operating Lease, Expense	$ 6,000

Note 4 - Convertible Debentur_2

Note 4 - Convertible Debentures (Details Textual) - USD ($)						3 Months Ended		9 Months Ended		12 Months Ended
	May 16, 2022	Feb. 09, 2022	Jul. 14, 2021	Apr. 18, 2018	Mar. 23, 2018	Mar. 31, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Share Price (in dollars per share)				$ 0.30	$ 0.36
Convertible Notes Payable, Noncurrent								$ 0		$ 1,778,000
Stock Issued During Period, Value, Conversion of Convertible Securities							$ 709,000	5,148,000	$ 1,620,000
Plan of Arrangement Conversion [Member]
Debt Instrument, Convertible, Conversion Price (in dollars per share)		$ 0.50
Debt Conversion, Converted Instrument, Shares Issued (in shares)		4,025,035
Stock Issued During Period, Value, Conversion of Convertible Securities						$ 2,000,000
Jones Special Warrant [Member]
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right (in shares)			1
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)			$ 0.625
Warrants and Rights Outstanding, Term (Month)			24 months
Plan of Arrangement Warrant Conversion [Member]
Class of Warrant or Right, Exercised (in shares)		4,025,035
Convertible Notes [Member]
Convertible Subordinated Debt, Total					$ 2,920,000
Debt Instrument, Term (Year)				4 years
Debt Instrument, Interest Rate, Stated Percentage				6%
Debt Instrument, Convertible, Conversion Price (in dollars per share)				$ 0.32
Debt Instrument, Convertible, Beneficial Conversion Feature					$ 350,000
Debt Issuance Costs, Gross				$ 137,000
Convertible Notes Payable, Noncurrent								0
Unsecured Convertible Debenture to SOL Verano Blocker 1 LLC [Member]
Debt Instrument, Interest Rate, Stated Percentage			5%
Debt Instrument, Convertible, Conversion Price (in dollars per share)			$ 0.50
Proceeds from Convertible Debt			$ 2,000,000
Convertible Debt Common Shares Issuable per Unit (in shares)			1
Convertible Debt Warrants Issuable per Unit (in shares)			1
Interest Payable										47,000
Unsecured Convertible Debenture 2022 [Member]
Debt Instrument, Interest Rate, Stated Percentage			5%
Contingent Convertible Debentures [Member]
Debt Instrument, Interest Rate, Stated Percentage		3%
Debt Issuance Costs, Gross		$ 108,000
Proceeds from Convertible Debt		$ 3,000,000								$ 538,000
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)		$ 0.50
Debt Conversion, Converted Instrument, Shares Issued (in shares)	6,022,192
Convertible Debt, Total								$ 0

Note 5 - Shareholders' Equity_2

Note 5 - Shareholders' Equity (Details Textual) - USD ($)				3 Months Ended	9 Months Ended
	May 16, 2022	Feb. 15, 2022	Jan. 01, 2020	Sep. 30, 2022	Sep. 30, 2022	Sep. 30, 2021
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Intrinsic Value				$ 96,000	$ 96,000
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Intrinsic Value				$ 96,000	$ 96,000
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period (in shares)				0	0	797,306
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period, Intrinsic Value						$ 435,000
Pinestar Subscription Receipt Offering [Member]
Stock Issued During Period, Shares, New Issues (in shares)		20,000,048
Proceeds from Issuance or Sale of Equity, Total		$ 7,152,000
Shares Issued, Price Per Share (in dollars per share)		$ 0.50
Restricted Stock Units (RSUs) [Member] | Non-employee Directors [Member]
Share-based Payment Arrangement, Expensed and Capitalized, Amount, Total			$ 25,000
Stock Options and Non-vested Stock [Member]
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total				$ 614,000	$ 614,000
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year)					2 years 3 months 18 days
The 2022 Incentive Plan [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Authorized (in shares)	10,000,000
The 2011 Incentive Plan [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Authorized (in shares)	11,936,074
Common Stock, Capital Shares Reserved for Future Issuance (in shares)	1,936,074
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant (in shares)				7,746,074	7,746,074
The 2011 Incentive Plan [Member] | Share-Based Payment Arrangement, Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period (Year)	10 years

Note 5 - Shareholders' Equity -

Note 5 - Shareholders' Equity - Summary of Stock Option Activity (Details)	3 Months Ended	9 Months Ended
	Sep. 30, 2022 $ / shares shares	Sep. 30, 2022 $ / shares shares	Sep. 30, 2021 $ / shares shares
Balance, number of shares (in shares) | shares		3,405,511	3,589,783
Balance, weighted average exercise price (in dollars per share) | $ / shares		$ 0.38	$ 0.36
Options granted, number of shares (in shares) | shares		665,648	1,003,450
Options granted, weighted average exercise price (in dollars per share) | $ / shares		$ 0.54	$ 0.36
Options forfeited/expired, number of shares (in shares) | shares		(834,327)	(596,354)
Options forfeited/expired, weighted average exercise price (in dollars per share) | $ / shares		$ 0.41	$ 0.49
Balance, number of shares (in shares) | shares	3,236,832	3,236,832	3,199,573
Balance, weighted average exercise price (in dollars per share) | $ / shares	$ 0.41	$ 0.41	$ 0.33
Exercisable, number of shares (in shares) | shares	2,385,258	2,385,258	1,685,462
Exercisable, weighted average exercise price (in dollars per share) | $ / shares	$ 0.32	$ 0.32	$ 0.37
Vested and expected to vest, number of shares (in shares) | shares	2,996,512	2,996,512	2,748,575
Vested and expected to vest, weighted average exercise price (in dollars per share) | $ / shares	$ 0.39	$ 0.39	$ 0.34
Options exercised, number of shares (in shares) | shares	0	0	(797,306)
Options exercised, weighted average exercise price (in dollars per share) | $ / shares			$ 0.37

Note 5 - Shareholders' Equity_3

Note 5 - Shareholders' Equity - Summary of Restricted Stock Activity (Details) - Restricted Stock [Member]	9 Months Ended
	Sep. 30, 2022 $ / shares shares
Non-vested restricted stock (in shares) | shares	0
Non-vested restricted stock, weighted-average grant date fair value (in dollars per share) | $ / shares	$ 0
Granted (in shares) | shares	4,920,000
Granted (in dollars per share) | $ / shares	$ 0.20
Granted (Year)	9 years 10 months 24 days
Vested (in shares) | shares	(1,240,000)
Vested, weighted-average grant date fair value (in dollars per share) | $ / shares	$ 0.20
Cancelled/expired (in shares) | shares	(350,000)
Cancelled/expired (in dollars per share) | $ / shares	$ 0.20
Non-vested restricted stock (in shares) | shares	3,330,000
Non-vested restricted stock, weighted-average grant date fair value (in dollars per share) | $ / shares	$ 0.20
Non-vested restricted stock, weighted-average contractual life (Year)	9 years 8 months 12 days

Note 5 - Shareholders' Equity_4

Note 5 - Shareholders' Equity - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Stock-based compensation expense	$ 674	$ 26	$ 1,060	$ 107
Selling and Marketing Expense [Member]
Stock-based compensation expense	534	5	643	30
General and Administrative Expense [Member]
Stock-based compensation expense	140	21	417	77
Share-Based Payment Arrangement, Option [Member]
Stock-based compensation expense	24	26	316	107
Restricted Stock [Member]
Stock-based compensation expense	$ 650	$ 0	$ 744	$ 0

Note 5 - Shareholders' Equity_5

Note 5 - Shareholders' Equity - Weighted-average Assumptions (Details) - Share-Based Payment Arrangement, Option [Member] - $ / shares	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Expected dividend yield	0%	0%
Expected stock price volatility	78.40%	73.90%
Risk-free interest rate	1.70%	0.70%
Expected term (in years) (Year)	5 years 10 months 24 days	5 years 9 months 18 days
Weighted-average grant date fair-value (in dollars per share)	$ 0.36	$ 1.23

Note 6 - Segment Information (D

Note 6 - Segment Information (Details Textual)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Number of Operating Segments			1
Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member]
Number of Major Customers	1	1	1	1
Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member] | One Customer [Member]
Concentration Risk, Percentage	18%	20%	18%	21%

Note 6 - Segment Information -

Note 6 - Segment Information - Geographic Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Revenue	$ 4,806	$ 4,565	$ 15,344	$ 11,880
UNITED STATES
Revenue	3,746	3,496	12,187	8,978
CANADA
Revenue	1,021	1,033	3,055	2,808
Other Countries [Member]
Revenue	$ 39	$ 36	$ 102	$ 94