Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Nov. 14, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'IFON | ' |
Entity Registrant Name | 'INFOSONICS CORP | ' |
Entity Central Index Key | '0001274032 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 14,358,062 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations and Comprehensive Income (Loss) (unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
Net sales | $8,138 | $9,867 | $30,207 | $26,030 |
Cost of sales | 6,943 | 8,039 | 24,910 | 21,090 |
Gross profit | 1,195 | 1,828 | 5,297 | 4,940 |
Operating expenses: | ' | ' | ' | ' |
Selling, general and administrative | 1,798 | 1,572 | 5,320 | 5,114 |
Research and development | 125 | 221 | 509 | 1,119 |
Total operating expenses | 1,923 | 1,793 | 5,829 | 6,233 |
Operating income (loss) | -728 | 35 | -532 | -1,293 |
Other income (expense): | ' | ' | ' | ' |
Other income (expense) | 119 | -2 | 117 | 584 |
Interest, net | -24 | 4 | -51 | 15 |
Income (loss) before provision for income taxes | -633 | 37 | -466 | -694 |
Provision for income taxes | ' | -3 | -3 | -28 |
Net income (loss) | -633 | 34 | -469 | -722 |
Net income (loss) per share: | ' | ' | ' | ' |
Basic | ($0.04) | $0 | ($0.03) | ($0.05) |
Diluted | ($0.04) | $0 | ($0.03) | ($0.05) |
Weighted-average number of common shares outstanding: | ' | ' | ' | ' |
Basic | 14,357 | 14,184 | 14,311 | 14,184 |
Diluted | 14,357 | 14,199 | 14,311 | 14,184 |
Comprehensive income (loss): | ' | ' | ' | ' |
Net income (loss) | -633 | 34 | -469 | -722 |
Foreign currency translation adjustments | -150 | -8 | -158 | -10 |
Comprehensive income (loss) | ($783) | $26 | ($627) | ($732) |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $540 | $2,369 |
Trade accounts receivable, net of allowance for doubtful accounts of $135 and $373, respectively | 10,518 | 11,856 |
Other accounts receivable | 540 | 163 |
Inventory | 4,877 | 2,467 |
Prepaid assets | 3,764 | 3,435 |
Total current assets | 20,239 | 20,290 |
Property and equipment, net | 167 | 200 |
Other assets | 32 | 179 |
Total assets | 20,438 | 20,669 |
Current liabilities: | ' | ' |
Accounts payable | 1,771 | 1,161 |
Accrued expenses | 2,769 | 3,180 |
Total current liabilities | 4,540 | 4,341 |
Commitments and Contingencies (Note 12) | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock, $0.001 par value, 10,000 shares authorized (no shares issued and outstanding) | 0 | 0 |
Common stock, $0.001 par value, 40,000 shares authorized; 14,358 and 14,184 shares issued and outstanding as of September 30, 2014 and December 31, 2013, respectively | 14 | 14 |
Additional paid-in capital | 32,588 | 32,391 |
Accumulated other comprehensive loss | -176 | -18 |
Accumulated deficit | -16,528 | -16,059 |
Total stockholders' equity | 15,898 | 16,328 |
Total liabilities and stockholders' equity | $20,438 | $20,669 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Per Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Accounts receivable, allowance for doubtful accounts | $135 | $373 |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 10,000 | 10,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 40,000 | 40,000 |
Common stock, shares issued | 14,358 | 14,184 |
Common stock, shares outstanding | 14,358 | 14,184 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (unaudited) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Cash flows from operating activities: | ' | ' |
Net loss | ($469) | ($722) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ' | ' |
Depreciation | 112 | 201 |
Loss on disposal of fixed assets | 11 | 48 |
Provision for (recovery of) bad debts | -25 | 34 |
Provision for obsolete inventory | 157 | -187 |
Stock-based compensation expense | 60 | 104 |
(Increase) decrease in: | ' | ' |
Trade accounts receivable | 1,363 | -1,525 |
Other accounts receivable | -377 | -8 |
Inventory | -2,567 | 728 |
Prepaids | -329 | -1,499 |
Other assets | 147 | 11 |
Increase (decrease) in: | ' | ' |
Accounts payable | 610 | -645 |
Accrued expenses | -411 | -752 |
Net cash used in operating activities | -1,718 | -4,212 |
Cash flows from investing activities: | ' | ' |
Purchase of property and equipment | -90 | -97 |
Decrease in restricted cash | ' | 728 |
Net cash provided by (used in) investing activities | -90 | 631 |
Cash flows from financing activities: | ' | ' |
Borrowings on line of credit | 1,249 | ' |
Repayments on line of credit | -1,249 | ' |
Cash received from exercise of stock options | 137 | ' |
Net cash provided by financing activities | 137 | ' |
Effect of exchange rate changes on cash | -158 | -10 |
Net decrease in cash and cash equivalents | -1,829 | -3,591 |
Cash and cash equivalents, beginning of period | 2,369 | 5,230 |
Cash and cash equivalents, end of period | 540 | 1,639 |
Cash paid for interest | 48 | ' |
Cash paid for income taxes | ' | ' |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation | ' |
NOTE 1. Basis of Presentation | |
The accompanying unaudited consolidated financial statements and these condensed notes have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. The preparation of financial statements requires management to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. Actual results are likely to differ from those estimates, but management does not believe such differences will materially affect the financial position or results of operations of InfoSonics Corporation (the “Company”), although they may. These unaudited consolidated financial statements and condensed notes should be read in conjunction with the financial statements and notes as of and for the year ended December 31, 2013 included in the Company’s Annual Report on Form 10-K. | |
The Company’s consolidated financial statements include assets, liabilities and operating results of its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. | |
In the opinion of management, these unaudited consolidated financial statements reflect all normal recurring adjustments considered necessary to fairly present the Company’s results of operations, financial position and cash flows as of September 30, 2014 and for all periods presented. The results reported in these consolidated financial statements for the three and nine months ended September 30, 2014 are not necessarily indicative of the operating results, financial condition or cash flows that may be expected for the full fiscal year of 2014 or for any future period. |
StockBased_Compensation
Stock-Based Compensation | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||
Stock-Based Compensation | ' | ||||||||||||||||
NOTE 2. Stock-Based Compensation | |||||||||||||||||
The Company has two stock-based compensation plans: the 2006 Equity Incentive Plan (“2006 Plan”) and the 2003 Stock Option Plan (“2003 Plan”). Each of the plans was approved by our stockholders. As of September 30, 2014, options to purchase 700,000 shares were outstanding under the 2006 Plan and 467,000 shares were available for grant thereunder. During the nine months ended September 30, 2014, the final 12,000 options outstanding under the 2003 Plan expired, and the 2003 Plan was terminated. | |||||||||||||||||
The Company’s stock options vest on an annual or a monthly basis. The Company recognizes stock-based compensation expense on a straight-line basis over the requisite service period of the award, which is generally the option vesting term. Such amount may change as a result of additional grants, forfeitures, modifications in assumptions and other factors. Income tax effects of share-based payments are recognized in the financial statements for those awards which will normally result in tax deductions under existing tax law. During the three and nine months ended September 30, 2014, we recorded an expense of $19,000 and $60,000, respectively, related to options previously granted. During the three and nine months ended September 30, 2013, we recorded an expense of $12,000 and $64,000, respectively, related to options previously granted. Under current U.S. federal tax law, we receive a compensation expense deduction related to non-qualified stock options only when those options are exercised and vested shares are received. Accordingly, the financial statement recognition of compensation expense for non-qualified stock options creates a deductible temporary difference that results in a deferred tax asset and a corresponding deferred tax benefit in our consolidated statements of operations. | |||||||||||||||||
During the nine months ended September 30, 2014 and 2013, the Company did not grant any stock options. As of September 30, 2014, there was $80,000 of total unrecognized compensation expense related to non-vested stock options. That expense is expected to be recognized over the remaining weighted-average period of 1.17 years. | |||||||||||||||||
A summary of option activity under all of the above plans as of September 30, 2014 and changes during the nine months then ended is presented in the table below (shares in thousands): | |||||||||||||||||
Shares | Wtd. Avg. | Wtd. Avg. | |||||||||||||||
Exercise Price | Remaining | ||||||||||||||||
Contractual | |||||||||||||||||
Life in Years | |||||||||||||||||
Outstanding at December 31, 2013 | 893 | $ | 0.72 | ||||||||||||||
Granted | — | $ | — | ||||||||||||||
Exercised | (174 | ) | $ | 0.78 | |||||||||||||
Expired | (12 | ) | $ | 3 | |||||||||||||
Forfeited | (7 | ) | $ | 0.73 | |||||||||||||
Outstanding at September 30, 2014 | 700 | $ | 0.67 | 4.21 | |||||||||||||
Vested and expected to vest | 681 | $ | 0.66 | 4.15 | |||||||||||||
Exercisable at September 30, 2014 | 535 | $ | 0.65 | 3.59 | |||||||||||||
A summary of the status of the Company’s non-vested options at September 30, 2014 and changes during the nine months then ended is presented below (shares in thousands): | |||||||||||||||||
Shares | Weighted-average | ||||||||||||||||
grant-date fair value | |||||||||||||||||
Non-vested at December 31, 2013 | 276 | $ | 0.58 | ||||||||||||||
Granted | — | $ | — | ||||||||||||||
Vested | (104 | ) | $ | 0.58 | |||||||||||||
Forfeited | (7 | ) | $ | 0.58 | |||||||||||||
Non-vested at September 30, 2014 | 165 | $ | 0.58 | ||||||||||||||
During the quarter ended June 30, 2010, the Company established a wholly owned subsidiary in Hong Kong to serve as the base for the Company’s sales and marketing efforts of its proprietary line of verykool® products in Asia-Pacific. It also established a wholly owned subsidiary of the Hong Kong entity in China for the purpose of designing and developing verykool® products. The Company funded the combined operations of these entities with $1.0 million and agreed to invest up to $1.0 million in additional funding as needed. In order to provide incentives to the China development team, the Company granted a warrant exercisable for 38% of the equity ownership of the Hong Kong subsidiary to a management company for the benefit of the China employees. The total exercise price of the warrant was $1.00, with vesting to occur one-third upon the first anniversary of the warrant and the remaining two-thirds to vest on a monthly basis over the succeeding 24 months. The warrant had a 6-year life, but was not exercisable until May 5, 2013, the third anniversary of its issuance. However, on April 24, 2013, the memorandum of understanding underlying the warrant was terminated as a consequence of the departure of key management members, which resulted in immediate cancellation of the unexercised warrant. | |||||||||||||||||
The Company evaluated the warrant on its Hong Kong subsidiary in accordance with ASC 718-50 and concluded that because the warrants were issued to the management company for allocation at its discretion, the proper treatment of the warrants was as specified in ASC 505-50 as equity-based payments to non-employees in exchange for services. The Company also concluded that the estimated fair value of the warrant at the date of grant was $365,000. The Company recorded the expense for this warrant based upon its estimated fair value on a straight-line basis over the three year performance period. During the three and nine months ended September 30, 2013, we recorded an expense of $0 and $40,000, respectively, related to this warrant. No similar expense was recorded during the three and nine months ended September 30, 2014. | |||||||||||||||||
The Company’s stock-based compensation is classified in the same expense line items as cash compensation. Information about stock-based compensation included in the unaudited results of operations for the three and nine months ended September 30, 2014 and 2013 is as follows (in thousands): | |||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Officer compensation | $ | 9 | $ | 7 | $ | 27 | $ | 38 | |||||||||
Non-employee directors | 4 | 2 | 13 | 11 | |||||||||||||
Sales, general and administrative | 6 | 3 | 20 | 15 | |||||||||||||
Research and development | — | — | — | 40 | |||||||||||||
Total stock option/warrant expense, included in total operating expenses | $ | 19 | $ | 12 | $ | 60 | $ | 104 | |||||||||
Earnings_Per_Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2014 | |
Earnings Per Share [Abstract] | ' |
Earnings Per Share | ' |
NOTE 3. Earnings Per Share | |
Basic earnings per share are computed by dividing income available to common stockholders by the weighted-average number of common shares outstanding. Diluted earnings per share is computed similarly to basic earnings per share, except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential additional common shares that were dilutive had been issued. Common share equivalents are excluded from the computation if their effect is anti-dilutive. The Company’s common share equivalents consist of stock options. | |
Common shares from the potential exercise of certain options may be excluded from the computation of earnings (loss) per share if their exercise prices are greater than the Company’s average stock price for the period. For the three and nine months ended September 30, 2014, no such shares were excluded. For both the three and nine months ended September 30, 2013, the number of shares excluded was 481,000. In addition, because their effect would have been anti-dilutive to the loss in the period, common shares from exercise of in-the-money options for the three and nine months ended September 30, 2014 of 700,000 and 138,000 shares for the nine months ended September 30, 2013 have also been excluded from the computation of net loss per share. |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
NOTE 4. Income Taxes | |
The Company made a comprehensive review of its portfolio of uncertain tax positions in accordance with applicable standards of the Financial Accounting Standards Board (“FASB”). In this regard, an uncertain tax position represents the Company’s expected treatment of a tax position taken in a filed tax return, or planned to be taken in a future tax return, that has not been reflected in measuring income tax expense for financial reporting purposes. As a result of this review, the Company concluded that at this time there are no uncertain tax positions, and there has been no cumulative effect on retained earnings. | |
The Company is subject to U.S. federal income tax as well as income tax in multiple states and foreign jurisdictions. For all major taxing jurisdictions, the tax years 2004 through 2013 remain open to examination or re-examination. As of September 30, 2014, the Company does not expect any material changes to unrecognized tax positions within the next twelve months. | |
The Company recognizes the amount of taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in an entity’s financial statements or tax returns. Judgment is required in assessing the future tax consequences of events that have been recognized in our financial statements or tax returns. Fluctuations in the actual outcome of these future tax consequences could materially impact the Company’s financial position or results of operations. For the three and nine months ended September 30, 2014, deferred income tax assets and the corresponding valuation allowance increased by $150,000 and decreased by $113,000, respectively. |
Inventory
Inventory | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventory | ' | ||||||||
NOTE 5. Inventory | |||||||||
Inventory is stated at the lower of cost (first-in, first-out) or market and consists primarily of cellular phones and cellular phone accessories. The Company records a reserve against inventories to account for obsolescence and possible price concessions required to liquidate inventories below cost. During the nine months ended September 30, 2014, the inventory reserve balance was increased by $157,000. As of September 30, 2014 and December 31, 2013, the inventory reserve was $241,000 and $84,000, respectively. From time to time, the Company has prepaid inventory as a result of payments for products which have not been received by the balance sheet date. As of September 30, 2014 and December 31, 2013, the prepaid inventory balances were $2,994,000 and $2,968,000, respectively, which are included in prepaid assets in the accompanying consolidated balance sheets. Inventory consists of the following (in thousands): | |||||||||
September 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
(unaudited) | (audited) | ||||||||
Finished goods | $ | 5,118 | $ | 2,551 | |||||
Inventory reserve | (241 | ) | (84 | ) | |||||
Net inventory | $ | 4,877 | $ | 2,467 | |||||
Property_and_Equipment
Property and Equipment | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Property and Equipment | ' | ||||||||
NOTE 6. Property and Equipment | |||||||||
Property and equipment are primarily located in the United States and China, including test fixtures and computer equipment at the Company’s development subsidiary in China and certain tooling and product molds located at outsourced manufacturers in Asia. Fixed assets consisted of the following (in thousands): | |||||||||
September 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
(unaudited) | (audited) | ||||||||
Machinery and equipment | $ | 294 | $ | 278 | |||||
Tooling and molds | 256 | 557 | |||||||
Furniture and fixtures | 149 | 131 | |||||||
Subtotal | 699 | 966 | |||||||
Less accumulated depreciation | (532 | ) | (766 | ) | |||||
Total | $ | 167 | $ | 200 | |||||
Depreciation expense for the three and nine months ended September 30, 2014 was $34,000 and $112,000, respectively, and for the three and nine six months ended September 30, 2013 was $58,000 and $201,000, respectively. |
Accrued_Expenses
Accrued Expenses | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
Accrued Expenses | ' | ||||||||
NOTE 7. Accrued Expenses | |||||||||
As of September 30, 2014 and December 31, 2013, accrued expenses consisted of the following (in thousands): | |||||||||
September 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
(unaudited) | (audited) | ||||||||
Accrued product costs (including warranty) | $ | 1,411 | $ | 1,572 | |||||
Income taxes payable | 104 | 130 | |||||||
Other accruals | 1,254 | 1,478 | |||||||
Total | $ | 2,769 | $ | 3,180 | |||||
Line_of_Credit
Line of Credit | 9 Months Ended |
Sep. 30, 2014 | |
Debt Disclosure [Abstract] | ' |
Line of Credit | ' |
NOTE 8. Line of Credit | |
On March 27, 2014, the Company entered into a Loan and Security Agreement and an attendant Intellectual Property Security Agreement (collectively the “Agreement”) with Silicon Valley Bank, pursuant to which the Company can borrow up to $2 million based upon both its domestic and foreign eligible accounts receivable multiplied by an advance rate of 80% and 70%, respectively, with eligibility determined in accordance with the Agreement (the “Credit Facility”). The Credit Facility is secured by substantially all of the Company’s assets. Borrowings under the Credit Facility will bear interest based on the face amount of the financed receivables at the prime rate plus 4.5% for domestic receivables and 3.53% for foreign receivables. The Credit Facility, which expires September 27, 2015, contains representations and warranties, affirmative, restrictive and financial covenants, and events of default which are customary for credit facilities of this type. At September 30, 2014, the Company was in compliance with all covenants, no amounts were drawn against the Credit Facility and $2,000,000 was available. |
Derivative_Instruments_and_Hed
Derivative Instruments and Hedging Activities | 9 Months Ended |
Sep. 30, 2014 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' |
Derivative Instruments and Hedging Activities | ' |
NOTE 9. Derivative Instruments and Hedging Activities | |
On December 9, 2011, the Company entered into a Foreign Exchange Trading Master Agreement and a Pledge Agreement (collectively, the “Agreement”) with HSBC Bank USA (the “Bank”). Under the terms of the Agreement, the Company and the Bank could enter into spot and/or forward foreign exchange transactions and/or foreign currency options. The Company used these derivative instruments to manage the foreign currency risk associated with its trade accounts receivable that are denominated in foreign currencies, primarily the Mexican peso. In order to secure its obligations under the Agreement, the Company deposited $1 million into a restricted account. During the three months ended March 31, 2013, the Company elected to terminate the Agreement and the $1 million of restricted funds were returned to its general unrestricted accounts. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Changes and Error Corrections [Abstract] | ' |
Recent Accounting Pronouncements | ' |
NOTE 10. Recent Accounting Pronouncements | |
Recently Adopted: | |
In March 2013, the FASB issued an update on a parent’s accounting for the cumulative translation adjustment, which we refer to as CTA, upon derecognition of certain subsidiaries or group of assets within a foreign entity or of an investment in a foreign entity. The objective of the update is to resolve the diversity in practice about the appropriate guidance to apply to the release of CTA into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or a business within a foreign entity. The update provides that the entire amount of the CTA associated with the foreign entity would be released when there has been a sale of a subsidiary or group of net assets within a foreign entity and the sale represents the substantially complete liquidation of the investment in the foreign entity. This update is effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2013. The update is applied prospectively from the beginning of the fiscal year of adoption. The Company adopted this guidance effective January 1, 2014, which adoption did not have an impact on the Company’s consolidated financial statements. | |
In July 2013, the FASB issued an amendment of the income tax reporting rules intended to clarify that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward if such settlement is required or expected in the event the uncertain tax benefit is disallowed. In situations where a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction or the tax law of the jurisdiction does not require, and the entity does not intend to use the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be netted with the deferred tax asset. The amendment is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption is permitted. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application is permitted. The Company adopted this guidance effective January 1, 2014, which adoption did not have an impact on the Company’s consolidated financial statements. | |
Issued (Not adopted yet): | |
In April 2014, the FASB issued ASU No. 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity”, which changes the criteria for determining which disposals can be presented as discontinued operations and modifies related disclosure requirements. Under the new guidance, a discontinued operation is defined as a disposal of a component or group of components that is disposed of and represents a strategic shift that has, or will have, a major effect on an entity’s operations and financial results. The new guidance is effective on a prospective basis for annual fiscal periods beginning on or after December 15, 2014. We do not expect the adoption of this new guidance to have an impact on the Company’s consolidated financial statements. | |
In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements Going Concern (Subtopic 205-40) - Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” This ASU requires management to assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards. Specifically, the ASU (1) provides a definition of the term substantial doubt, (2) requires an evaluation every reporting period including interim periods, (3) provides principles for considering the mitigating effect of management’s plans, (4) requires certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, (5) requires an express statement and other disclosures when substantial doubt is not alleviated, and (6) requires an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). This standard is effective for the fiscal years ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. The Company is currently evaluating the new guidance to determine the impact it will have on its consolidated financial statements. | |
Other Accounting Standards Updates not effective until after September 30, 2014 are not expected to have a material effect on the Company’s financial position or results of operations. |
Geographic_Information
Geographic Information | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Geographic Information | ' | ||||||||||||||||
NOTE 11. Geographic Information | |||||||||||||||||
The Company currently operates in one business segment. Fixed assets are principally located in Company or third-party facilities in the United States and Asia. The unaudited net sales by geographical area for the three and nine months ended September 30, 2014 and 2013 were (in thousands): | |||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Central America | $ | 2,186 | $ | 2,600 | $ | 10,229 | $ | 11,474 | |||||||||
South America | 1,952 | 3,864 | 9,049 | 7,220 | |||||||||||||
Mexico | 1,053 | 803 | 2,219 | 1,136 | |||||||||||||
U.S.-based Latin American distributors | 1,967 | 2,195 | 5,501 | 5,189 | |||||||||||||
United States | 874 | 67 | 1,765 | 643 | |||||||||||||
Europe, Middle East and Africa (“EMEA”) | 106 | 202 | 1,388 | 219 | |||||||||||||
Asia Pacific (“APAC”) | — | 136 | 56 | 149 | |||||||||||||
Total | $ | 8,138 | $ | 9,867 | $ | 30,207 | $ | 26,030 | |||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
NOTE 12. Commitments and Contingencies | |
Viamport Litigation | |
On May 22, 2012, a lawsuit was filed against the Company in Santo Domingo, Dominican Republic (Case No. FP-12-461) by Viaimport, SRL, a former customer of the Company, and served on the Company on July 12, 2012. The complaint alleged breach of contract and sought U.S. $1 million in damages. On August 31, 2012, the Company filed a lawsuit against Viaimport and its principal, Omar Hassan, in the Circuit Court of the Eleventh Judicial Circuit in and for Miami-Dade County Florida (Case No. 12-34647CA32) for non-payment of purchase obligations aggregating $288,559 and other damages. On August 12, 2013, Viaimport filed a counterclaim against InfoSonics in Miami-Dade County, which was essentially a mirror image of the Dominican Republic complaint. On November 19, 2013, InfoSonics filed a request with the Dominican Republic Court to request dismissal of the case there for lack of jurisdiction in order to have both related actions heard in Miami-Dade County. On June 30, 2014 we entered into a Settlement Agreement with Viaimport and Hassan whereby Viaimport and Hassan, jointly and severally, agreed to pay us $125,000 consisting of an immediate payment of $45,000 and the $80,000 balance in six equal monthly payments. Prior to the settlement, the related account receivable was fully reserved. As a result of the settlement and the $45,000 payment at closing, $208,559 of the reserve was applied to reduce the receivable to $80,000. We are now recording the monthly payments as bad debt recoveries when received. The lawsuits in Miami and the Dominican Republic have been dismissed with prejudice by the Courts. | |
Blue Spike Litigation | |
On October 8, 2013, Blue Spike, LLC (“Blue Spike”) filed a patent infringement lawsuit against the Company in the U.S. District Court for the Eastern District of Texas, alleging that certain of our products infringe claims of U.S. Patent No. 5,745,569. Blue Spike is seeking recovery of unspecified monetary damages. We do not believe we infringe the Blue Spike patent and intend to defend ourselves vigorously. On February 10, 2014 we filed an answer with the Court stating that we do not infringe and setting forth multiple defenses. Due to the inherent uncertainty of litigation, we cannot identify probable or estimable damages related to the lawsuit at this time. | |
The Company may become involved in certain other legal proceedings and claims which arise in the normal course of business. Other than as described above, as of the filing date of this report, the Company did not have any significant litigation outstanding. |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2014 | |
Fair Value Disclosures [Abstract] | ' |
Fair Value of Financial Instruments | ' |
NOTE 13. Fair Value of Financial Instruments | |
The FASB accounting guidance requires disclosure of fair value information about financial instruments, whether or not recognized in the accompanying consolidated balance sheets. Fair value as defined by the guidance is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value estimates of financial instruments are not necessarily indicative of the amounts we might pay or receive in actual market transactions. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. Effective April 1, 2008 the Company adopted and follows ASC 820, Fair Value Measurements and Disclosures (“ASC 820”) which established a fair value hierarchy that requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instruments categorization within the hierarchy is based on the lowest level of input that is significant to the fair value measurement. | |
The Company’s cash and cash equivalents and restricted cash are measured at fair value in the Company’s consolidated financial statements and are valued using unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 inputs under ASC 820). The carrying amount of our accounts receivable, other accounts receivable, prepaid expenses, accounts payable and accrued expenses reported in the consolidated balance sheets approximates fair value because of the short maturity of those instruments. | |
At September 30, 2014 and December 31, 2013, we did not have any material applicable nonrecurring measurements of nonfinancial assets and nonfinancial liabilities. |
StockBased_Compensation_Polici
Stock-Based Compensation (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Changes and Error Corrections [Abstract] | ' |
Equity-Based Payments to Non-Employees in Exchange for Services | 'The Company evaluated the warrant on its Hong Kong subsidiary in accordance with ASC 718-50 and concluded that because the warrants were issued to the management company for allocation at its discretion, the proper treatment of the warrants was as specified in ASC 505-50 as equity-based payments to non-employees in exchange for services. The Company also concluded that the estimated fair value of the warrant at the date of grant was $365,000. The Company recorded the expense for this warrant based upon its estimated fair value on a straight-line basis over the three year performance period. During the three and nine months ended September 30, 2013, we recorded an expense of $0 and $40,000, respectively, related to this warrant. No similar expense was recorded during the three and nine months ended September 30, 2014. |
Recent Accounting Pronouncement | ' |
Recently Adopted: | |
In March 2013, the FASB issued an update on a parent’s accounting for the cumulative translation adjustment, which we refer to as CTA, upon derecognition of certain subsidiaries or group of assets within a foreign entity or of an investment in a foreign entity. The objective of the update is to resolve the diversity in practice about the appropriate guidance to apply to the release of CTA into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or a business within a foreign entity. The update provides that the entire amount of the CTA associated with the foreign entity would be released when there has been a sale of a subsidiary or group of net assets within a foreign entity and the sale represents the substantially complete liquidation of the investment in the foreign entity. This update is effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2013. The update is applied prospectively from the beginning of the fiscal year of adoption. The Company adopted this guidance effective January 1, 2014, which adoption did not have an impact on the Company’s consolidated financial statements. | |
In July 2013, the FASB issued an amendment of the income tax reporting rules intended to clarify that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward if such settlement is required or expected in the event the uncertain tax benefit is disallowed. In situations where a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction or the tax law of the jurisdiction does not require, and the entity does not intend to use the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be netted with the deferred tax asset. The amendment is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption is permitted. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application is permitted. The Company adopted this guidance effective January 1, 2014, which adoption did not have an impact on the Company’s consolidated financial statements. | |
Issued (Not adopted yet): | |
In April 2014, the FASB issued ASU No. 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity”, which changes the criteria for determining which disposals can be presented as discontinued operations and modifies related disclosure requirements. Under the new guidance, a discontinued operation is defined as a disposal of a component or group of components that is disposed of and represents a strategic shift that has, or will have, a major effect on an entity’s operations and financial results. The new guidance is effective on a prospective basis for annual fiscal periods beginning on or after December 15, 2014. We do not expect the adoption of this new guidance to have an impact on the Company’s consolidated financial statements. | |
In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements Going Concern (Subtopic 205-40) - Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” This ASU requires management to assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards. Specifically, the ASU (1) provides a definition of the term substantial doubt, (2) requires an evaluation every reporting period including interim periods, (3) provides principles for considering the mitigating effect of management’s plans, (4) requires certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, (5) requires an express statement and other disclosures when substantial doubt is not alleviated, and (6) requires an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). This standard is effective for the fiscal years ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. The Company is currently evaluating the new guidance to determine the impact it will have on its consolidated financial statements. | |
Other Accounting Standards Updates not effective until after September 30, 2014 are not expected to have a material effect on the Company’s financial position or results of operations. |
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||
Summary of Option Activity | ' | ||||||||||||||||
A summary of option activity under all of the above plans as of September 30, 2014 and changes during the nine months then ended is presented in the table below (shares in thousands): | |||||||||||||||||
Shares | Wtd. Avg. | Wtd. Avg. | |||||||||||||||
Exercise Price | Remaining | ||||||||||||||||
Contractual | |||||||||||||||||
Life in Years | |||||||||||||||||
Outstanding at December 31, 2013 | 893 | $ | 0.72 | ||||||||||||||
Granted | — | $ | — | ||||||||||||||
Exercised | (174 | ) | $ | 0.78 | |||||||||||||
Expired | (12 | ) | $ | 3 | |||||||||||||
Forfeited | (7 | ) | $ | 0.73 | |||||||||||||
Outstanding at September 30, 2014 | 700 | $ | 0.67 | 4.21 | |||||||||||||
Vested and expected to vest | 681 | $ | 0.66 | 4.15 | |||||||||||||
Exercisable at September 30, 2014 | 535 | $ | 0.65 | 3.59 | |||||||||||||
Summary of Non-Vested Options | ' | ||||||||||||||||
A summary of the status of the Company’s non-vested options at September 30, 2014 and changes during the nine months then ended is presented below (shares in thousands): | |||||||||||||||||
Shares | Weighted-average | ||||||||||||||||
grant-date fair value | |||||||||||||||||
Non-vested at December 31, 2013 | 276 | $ | 0.58 | ||||||||||||||
Granted | — | $ | — | ||||||||||||||
Vested | (104 | ) | $ | 0.58 | |||||||||||||
Forfeited | (7 | ) | $ | 0.58 | |||||||||||||
Non-vested at September 30, 2014 | 165 | $ | 0.58 | ||||||||||||||
Stock-Based Compensation Included in Unaudited Results of Operations | ' | ||||||||||||||||
The Company’s stock-based compensation is classified in the same expense line items as cash compensation. Information about stock-based compensation included in the unaudited results of operations for the three and nine months ended September 30, 2014 and 2013 is as follows (in thousands): | |||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Officer compensation | $ | 9 | $ | 7 | $ | 27 | $ | 38 | |||||||||
Non-employee directors | 4 | 2 | 13 | 11 | |||||||||||||
Sales, general and administrative | 6 | 3 | 20 | 15 | |||||||||||||
Research and development | — | — | — | 40 | |||||||||||||
Total stock option/warrant expense, included in total operating expenses | $ | 19 | $ | 12 | $ | 60 | $ | 104 | |||||||||
Inventory_Tables
Inventory (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Schedule of Inventory | ' | ||||||||
Inventory consists of the following (in thousands): | |||||||||
September 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
(unaudited) | (audited) | ||||||||
Finished goods | $ | 5,118 | $ | 2,551 | |||||
Inventory reserve | (241 | ) | (84 | ) | |||||
Net inventory | $ | 4,877 | $ | 2,467 | |||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Summary of Property and Equipment | ' | ||||||||
Fixed assets consisted of the following (in thousands): | |||||||||
September 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
(unaudited) | (audited) | ||||||||
Machinery and equipment | $ | 294 | $ | 278 | |||||
Tooling and molds | 256 | 557 | |||||||
Furniture and fixtures | 149 | 131 | |||||||
Subtotal | 699 | 966 | |||||||
Less accumulated depreciation | (532 | ) | (766 | ) | |||||
Total | $ | 167 | $ | 200 | |||||
Accrued_Expenses_Tables
Accrued Expenses (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
Schedule of Accrued Expenses | ' | ||||||||
As of September 30, 2014 and December 31, 2013, accrued expenses consisted of the following (in thousands): | |||||||||
September 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
(unaudited) | (audited) | ||||||||
Accrued product costs (including warranty) | $ | 1,411 | $ | 1,572 | |||||
Income taxes payable | 104 | 130 | |||||||
Other accruals | 1,254 | 1,478 | |||||||
Total | $ | 2,769 | $ | 3,180 | |||||
Geographic_Information_Tables
Geographic Information (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Schedule of Sales by Geographical Area | ' | ||||||||||||||||
The unaudited net sales by geographical area for the three and nine months ended September 30, 2014 and 2013 were (in thousands): | |||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Central America | $ | 2,186 | $ | 2,600 | $ | 10,229 | $ | 11,474 | |||||||||
South America | 1,952 | 3,864 | 9,049 | 7,220 | |||||||||||||
Mexico | 1,053 | 803 | 2,219 | 1,136 | |||||||||||||
U.S.-based Latin American distributors | 1,967 | 2,195 | 5,501 | 5,189 | |||||||||||||
United States | 874 | 67 | 1,765 | 643 | |||||||||||||
Europe, Middle East and Africa (“EMEA”) | 106 | 202 | 1,388 | 219 | |||||||||||||
Asia Pacific (“APAC”) | — | 136 | 56 | 149 | |||||||||||||
Total | $ | 8,138 | $ | 9,867 | $ | 30,207 | $ | 26,030 | |||||||||
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2010 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2010 | Sep. 30, 2014 | Sep. 30, 2013 | |
Plans | 2006 Equity Incentive Plan [Member] | 2003 Stock Option Plan [Member] | Hong Kong Subsidiary [Member] | Hong Kong Subsidiary [Member] | Hong Kong Subsidiary [Member] | Hong Kong Subsidiary [Member] | Hong Kong Subsidiary [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of equity incentive plans | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares outstanding under equity incentive plans | 700,000 | ' | 700,000 | ' | 893,000 | ' | 700,000 | 12,000 | ' | ' | ' | ' | ' |
Shares available for grant under equity incentive plans | ' | ' | ' | ' | ' | ' | 467,000 | ' | ' | ' | ' | ' | ' |
Expense related to options granted under equity incentive plan | $19,000 | $12,000 | $60,000 | $64,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock options granted under equity incentive plans | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation expense related to non-vested stock options | 80,000 | ' | 80,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Recognition of unrecognized compensation expense, weighted-average period (in years) | ' | ' | '1 year 2 months 1 day | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Value funded to affiliates | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' |
Agreed additional funding to affiliates | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' |
Equity ownership percentage to benefit China employees | ' | ' | ' | ' | ' | 38.00% | ' | ' | ' | ' | ' | ' | ' |
Price of warrant | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' |
Vesting period of warrant | ' | ' | 'Vesting to occur one-third upon the first anniversary of the warrant and the remaining two-thirds to vest on a monthly basis over the succeeding 24 months. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment warrants expiration period (years) | ' | ' | '6 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrant exercise date | ' | ' | 5-May-13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated fair value of warrants | ' | ' | ' | ' | ' | ' | ' | ' | 365,000 | ' | ' | 365,000 | ' |
Warrant performance period (years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' |
Stock expenses on equity-based payments related to warrant | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | ' | $0 | $40,000 |
StockBased_Compensation_Summar
Stock-Based Compensation - Summary of Option Activity (Detail) (USD $) | 9 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' |
Shares, Outstanding, Beginning balance | 893 | ' |
Shares, Granted | 0 | 0 |
Shares, Exercised | -174 | ' |
Shares, Expired | -12 | ' |
Shares, Forfeited | -7 | ' |
Shares, Outstanding, Ending balance | 700 | ' |
Shares, Vested and expected to vest | 681 | ' |
Shares, Exercisable, Ending balance | 535 | ' |
Wtd. Avg. Exercise Price Outstanding, Beginning balance | $0.72 | ' |
Wtd. Avg. Exercise Price, Granted | ' | ' |
Wtd. Avg. Exercise Price, Exercised | $0.78 | ' |
Wtd. Avg Exercise Price, Expired | $3 | ' |
Wtd. Avg. Exercise Price, Forfeited | $0.73 | ' |
Wtd. Avg. Exercise Price, Outstanding, Ending balance | $0.67 | ' |
Wtd. Avg. Exercise Price, Vested and expected to vest | $0.66 | ' |
Wtd. Avg. Exercise Price, Exercisable, Ending balance | $0.65 | ' |
Wtd. Avg. Remaining Contractual Life, Outstanding | '4 years 2 months 16 days | ' |
Wtd. Avg. Remaining Contractual Life, Vested and expected to vest | '4 years 1 month 24 days | ' |
Wtd. Avg. Remaining Contractual Life, Exercisable | '3 years 7 months 2 days | ' |
StockBased_Compensation_Summar1
Stock-Based Compensation - Summary of Non-Vested Options (Detail) (USD $) | 9 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' |
Shares, Non-vested, Beginning balance | 276 |
Shares, Granted | ' |
Shares, Vested | -104 |
Shares, Forfeited | -7 |
Shares, Non-vested, Ending balance | 165 |
Weighted-average grant-date fair value, Non-vested, Beginning balance | $0.58 |
Weighted-average grant-date fair value, Granted | ' |
Weighted-average grant-date fair value, Vested | $0.58 |
Weighted-average grant-date fair value, Forfeited | $0.58 |
Weighted-average grant-date fair value, Non-vested, Ending balance | $0.58 |
StockBased_Compensation_StockB
Stock-Based Compensation - Stock-Based Compensation Included in Unaudited Results of Operations (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ' | ' | ' | ' |
Total stock option/warrant expense, included in total operating expenses | $19 | $12 | $60 | $104 |
Officer compensation [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ' | ' | ' | ' |
Total stock option/warrant expense, included in total operating expenses | 9 | 7 | 27 | 38 |
Non-employee directors [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ' | ' | ' | ' |
Total stock option/warrant expense, included in total operating expenses | 4 | 2 | 13 | 11 |
Sales, general and administrative [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ' | ' | ' | ' |
Total stock option/warrant expense, included in total operating expenses | 6 | 3 | 20 | 15 |
Research and development [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ' | ' | ' | ' |
Total stock option/warrant expense, included in total operating expenses | ' | ' | ' | $40 |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Antidilutive securities excluded from computation of earnings per share | 0 | 481,000 | 0 | 481,000 |
Common shares from exercise of in-the-money options [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Antidilutive securities excluded from computation of earnings per share | 700,000 | ' | 700,000 | 138,000 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2014 | Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' | ' |
Cumulative effect on retained earnings | ' | $0 |
Unrecognized tax benefits | 0 | 0 |
Year under examination | ' | '2004 |
Year under examination, one | ' | '2013 |
Deferred tax assets, increase (decrease) in valuation allowance | $150,000 | ($113,000) |
Inventory_Additional_Informati
Inventory - Additional Information (Detail) (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Dec. 31, 2013 | |
Inventory Disclosure [Abstract] | ' | ' |
Increase in inventory reserve | $157,000 | ' |
Inventory reserve | 241,000 | 84,000 |
Prepaid inventory balances included in prepaid assets | $2,994,000 | $2,968,000 |
Inventory_Schedule_of_Inventor
Inventory - Schedule of Inventory (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Finished goods | $5,118 | $2,551 |
Inventory reserve | -241 | -84 |
Net inventory | $4,877 | $2,467 |
Property_and_Equipment_Summary
Property and Equipment - Summary of Property and Equipment (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | $699 | $966 |
Less accumulated depreciation | -532 | -766 |
Total | 167 | 200 |
Machinery and equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 294 | 278 |
Tooling and molds [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 256 | 557 |
Furniture and fixtures [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | $149 | $131 |
Property_and_Equipment_Additio
Property and Equipment - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Property, Plant and Equipment [Abstract] | ' | ' | ' | ' |
Depreciation expense | $34 | $58 | $112 | $201 |
Accrued_Expenses_Schedule_of_A
Accrued Expenses - Schedule of Accrued Expenses (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Payables and Accruals [Abstract] | ' | ' |
Accrued product costs (including warranty) | $1,411 | $1,572 |
Income taxes payable | 104 | 130 |
Other accruals | 1,254 | 1,478 |
Total | $2,769 | $3,180 |
Line_of_Credit_Additional_Info
Line of Credit - Additional Information (Detail) (USD $) | 9 Months Ended | 0 Months Ended | 0 Months Ended | |||
Sep. 30, 2014 | Mar. 27, 2014 | Mar. 27, 2014 | Mar. 27, 2014 | Mar. 27, 2014 | Mar. 27, 2014 | |
Domestic receivables [Member] | Domestic receivables [Member] | Foreign receivables [Member] | Foreign receivables [Member] | |||
Prime rate [Member] | Prime rate [Member] | |||||
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' |
Line of credit facility, maximum borrowing capacity | ' | $2,000,000 | ' | ' | ' | ' |
Eligible accounts receivable, advance rate | ' | ' | 80.00% | ' | 70.00% | ' |
Line of credit facility, interest rate description | 'Borrowings under the Credit Facility will bear interest based on the face amount of the financed receivables at the prime rate plus 4.5% for domestic receivables and 3.53% for foreign receivables. | ' | ' | ' | ' | ' |
Amounts drawn against the Credit Facility | 0 | ' | ' | ' | ' | ' |
Credit Facility interest rate | ' | ' | ' | 4.50% | ' | 3.53% |
Line of credit facility expiry date | 27-Sep-15 | ' | ' | ' | ' | ' |
Line of credit facility available | $2,000,000 | ' | ' | ' | ' | ' |
Derivative_Instruments_and_Hed1
Derivative Instruments and Hedging Activities - Additional Information (Detail) (Foreign exchange forward [Member], USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2013 | Dec. 09, 2011 |
Foreign exchange forward [Member] | ' | ' |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ' | ' |
Obligations under restricted cash | ' | $1 |
Fund returned to general unrestricted accounts | $1 | ' |
Geographic_Information_Additio
Geographic Information - Additional Information (Detail) | Sep. 30, 2014 |
Segment | |
Segment Reporting [Abstract] | ' |
Number of business segment operated currently | 1 |
Geographic_Information_Schedul
Geographic Information - Schedule of Sales by Geographical Area (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Net sales by geographical area | $8,138 | $9,867 | $30,207 | $26,030 |
Central America [Member] | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Net sales by geographical area | 2,186 | 2,600 | 10,229 | 11,474 |
South America [Member] | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Net sales by geographical area | 1,952 | 3,864 | 9,049 | 7,220 |
Mexico [Member] | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Net sales by geographical area | 1,053 | 803 | 2,219 | 1,136 |
U.S.-based Latin American distributors [Member] | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Net sales by geographical area | 1,967 | 2,195 | 5,501 | 5,189 |
United States [Member] | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Net sales by geographical area | 874 | 67 | 1,765 | 643 |
Europe, Middle East and Africa ("EMEA") [Member] | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Net sales by geographical area | 106 | 202 | 1,388 | 219 |
Asia Pacific ("APAC") [Member] | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Net sales by geographical area | ' | $136 | $56 | $149 |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) (USD $) | 9 Months Ended | 1 Months Ended | 9 Months Ended | |
Sep. 30, 2014 | Jul. 12, 2012 | Aug. 31, 2012 | Sep. 30, 2014 | |
Viamport Litigation [Member] | Viamport Litigation [Member] | Viamport Litigation [Member] | Blue Spike Litigation [Member] | |
Installment | Purchase obligations [Member] | |||
Loss Contingencies [Line Items] | ' | ' | ' | ' |
Lawsuit filing date | 22-May-12 | ' | ' | 8-Oct-13 |
Damages claimed by customer for breach of contract | ' | $1,000,000 | ' | ' |
Lawsuit filed against Viaimport and its principal | 31-Aug-12 | ' | ' | ' |
Non-payment of purchase obligations and other damages | ' | ' | 288,559 | ' |
Payments for settlement agreement | 125,000 | ' | ' | ' |
Immediate payments for settlement agreement | 45,000 | ' | ' | ' |
Installments for settlement agreement | 80,000 | ' | ' | ' |
Number of installments | 6 | ' | ' | ' |
Litigation reserve applied to reduce the receivable | $208,559 | ' | ' | ' |