Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 10, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | IFON | ||
Entity Registrant Name | INFOSONICS CORP | ||
Entity Central Index Key | 1,274,032 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Common Stock, Shares Outstanding | 14,388,728 | ||
Entity Public Float | $ 27,069,610 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 2,647 | $ 1,464 |
Trade accounts receivable, net of allowance for doubtful accounts of $95 and $95 as of December 31, 2015 and 2014, respectively | 9,291 | 15,644 |
Other accounts receivable | 96 | 70 |
Inventory | 6,637 | 5,880 |
Prepaid assets | 2,025 | 2,778 |
Total current assets | 20,696 | 25,836 |
Property and equipment, net | 156 | 137 |
Other assets | 129 | 31 |
Total assets | 20,981 | 26,004 |
Current liabilities: | ||
Accounts payable | 4,398 | 4,371 |
Accrued expenses | 2,343 | 2,804 |
Line of credit borrowings | 2,725 | |
Total current liabilities | $ 6,741 | $ 9,900 |
Commitments and Contingencies (Note 8) | ||
Stockholders' equity: | ||
Preferred stock, $0.001 par value, 10,000 shares authorized: no shares issued and outstanding | ||
Common stock, $0.001 par value, 40,000 shares authorized: 14,389 and 14,358 shares issued and outstanding as of December 31, 2015 and 2014, respectively | $ 14 | $ 14 |
Additional paid-in capital | 32,859 | 32,614 |
Accumulated other comprehensive loss | (1,592) | (726) |
Accumulated deficit | (17,041) | (15,798) |
Total stockholders' equity | 14,240 | 16,104 |
Total liabilities and stockholders' equity | $ 20,981 | $ 26,004 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 95 | $ 95 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 14,389,000 | 14,358,000 |
Common stock, shares outstanding | 14,389,000 | 14,358,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement [Abstract] | |||
Net sales | $ 47,833 | $ 48,144 | $ 37,895 |
Cost of sales | 40,414 | 39,891 | 30,953 |
Gross profit | 7,419 | 8,253 | 6,942 |
Operating expenses: | |||
Selling, general and administrative | 8,339 | 7,379 | 6,751 |
Research and development | 0 | 588 | 1,336 |
Total operating expenses | 8,339 | 7,967 | 8,087 |
Operating income (loss) | (920) | 286 | (1,145) |
Other income (expense): | |||
Other income (expense), net | 115 | 582 | |
Interest income (expense), net | (320) | (126) | 17 |
Income (loss) before provision for income taxes | (1,240) | 275 | (546) |
Provision for income taxes | (3) | (14) | (51) |
Net income (loss) | $ (1,243) | $ 261 | $ (597) |
Net income (loss) per share: | |||
Basic | $ (0.09) | $ 0.02 | $ (0.04) |
Diluted | $ (0.09) | $ 0.02 | $ (0.04) |
Weighted-average number of common shares outstanding: | |||
Basic | 14,380 | 14,323 | 14,184 |
Diluted | 14,380 | 14,789 | 14,184 |
Comprehensive loss: | |||
Net income (loss) | $ (1,243) | $ 261 | $ (597) |
Foreign currency translation adjustments | (866) | (708) | (5) |
Comprehensive loss | $ (2,109) | $ (447) | $ (602) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] |
Beginning Balance at Dec. 31, 2012 | $ 16,821 | $ 14 | $ 32,282 | $ (15,462) | $ (13) |
Beginning Balance, shares at Dec. 31, 2012 | 14,184,000 | ||||
Exercise of stock options, shares | 0 | ||||
Stock-based compensation expense | $ 109 | 109 | |||
Foreign currency translation | (5) | (5) | |||
Net income (loss) | (597) | (597) | |||
Ending Balance at Dec. 31, 2013 | 16,328 | $ 14 | 32,391 | (16,059) | (18) |
Ending Balance, shares at Dec. 31, 2013 | 14,184,000 | ||||
Exercise of stock options | $ 137 | $ 0 | 137 | ||
Exercise of stock options, shares | 174,000 | 174,000 | |||
Stock-based compensation expense | $ 86 | 86 | |||
Foreign currency translation | (708) | (708) | |||
Net income (loss) | 261 | 261 | |||
Ending Balance at Dec. 31, 2014 | 16,104 | $ 14 | 32,614 | (15,798) | (726) |
Ending Balance, shares at Dec. 31, 2014 | 14,358,000 | ||||
Exercise of stock options | $ 27 | $ 0 | 27 | ||
Exercise of stock options, shares | 30,000 | 31,000 | |||
Stock-based compensation expense | $ 218 | 218 | |||
Foreign currency translation | (866) | (866) | |||
Net income (loss) | (1,243) | (1,243) | |||
Ending Balance at Dec. 31, 2015 | $ 14,240 | $ 14 | $ 32,859 | $ (17,041) | $ (1,592) |
Ending Balance, shares at Dec. 31, 2015 | 14,389,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | |||
Net income (loss) | $ (1,243) | $ 261 | $ (597) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation | 92 | 146 | 263 |
Loss on disposal of fixed assets | 33 | 49 | |
Provision for (recovery of) bad debts | (65) | 34 | |
Provision for obsolete inventory | (63) | 255 | (194) |
Stock-based compensation | 218 | 86 | 109 |
(Increase) decrease in: | |||
Trade accounts receivable | 6,353 | (3,723) | (1,643) |
Other accounts receivable | (26) | 93 | (68) |
Inventory | (694) | (3,668) | 1,156 |
Prepaids | 753 | 657 | (1,914) |
Other assets | (98) | 148 | 50 |
Increase (decrease) in: | |||
Accounts payable | 27 | 3,210 | (353) |
Accrued expenses | (461) | (376) | (606) |
Net cash provided by (used in) operating activities | 4,858 | (2,943) | (3,714) |
Cash flows from investing activities: | |||
Purchase of property and equipment | (111) | (116) | (145) |
Decrease in restricted cash | 1,003 | ||
Net cash provided by (used in) investing activities | (111) | (116) | 858 |
Cash flows from financing activities: | |||
Borrowings on line of credit | 4,460 | 4,380 | |
Repayments on line of credit | (7,185) | (1,655) | |
Cash received from exercise of stock options | 27 | 137 | |
Net cash provided by (used in) financing activities | (2,698) | 2,862 | |
Effect of exchange rate changes on cash | (866) | (708) | (5) |
Net increase (decrease) in cash and cash equivalents | 1,183 | (905) | (2,861) |
Cash and cash equivalents, beginning of year | 1,464 | 2,369 | 5,230 |
Cash and cash equivalents, end of year | 2,647 | 1,464 | $ 2,369 |
Cash paid for interest | $ 350 | 77 | |
Cash paid for income taxes | $ 50 |
Organization and Line of Busine
Organization and Line of Business | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Line of Business | NOTE 1—ORGANIZATION AND LINE OF BUSINESS InfoSonics Corporation (“InfoSonics”) was incorporated in February 1994 in the state of California and reincorporated in September 2003 in the state of Maryland. InfoSonics and its subsidiaries, InfoSonics Latin America, Inc., InfoSonics de Mexico S.A. de C.V., InfoSonics de Guatemala S.A., InfoSonics El Salvador S.A. de C.V., InfoSonics S.A., InfoSonics Colombia S.A., verykool USA, Inc., InfoSonics de Panama, verykool Hong Kong Limited, and verykool Wireless Technology Limited (collectively, the “Company”), define, source and sell wireless telecommunication products and accessories to wireless carriers and distributors. The Company markets its branded products throughout Latin America and the United States. |
Restructuring and R&D Expense
Restructuring and R&D Expense | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and R&D Expense | NOTE 2—RESTRUCTURING AND R&D EXPENSE In December 2012, the Company finalized a plan to reduce its workforce in China by 21 employees, or 20% of its worldwide workforce. The reductions, which were accomplished in the first quarter of 2013, were intended to eliminate headcount redundancies built up during multiple concurrent product developments and to restructure the China workforce with a shift toward more resources in the Company’s Shenzhen office and a lower concentration in Beijing. Severance costs, mandated by Chinese labor law, related to the terminated employees of $100,000 were recorded in the fourth quarter of 2012 as R&D expense. A second restructuring was affected in the second quarter of 2013 to further reduce headcount and consolidate the development team in a single location in Shenzhen. Total costs related to this restructuring amounted to approximately $192,000 including $134,000 in severance paid to terminated employees as well as legal fees and expenses related to abandonment of one incomplete development project. Over the course of 2014, the Company completed all of its internal development projects and gradually phased out its design team by the end of 2014. The Company had no R&D expense during 2015. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 3—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The Consolidated Financial Statements include the accounts of InfoSonics and its wholly owned subsidiaries as listed in Note 1. All significant intercompany accounts and transactions are eliminated in consolidation. Revenue Recognition and Allowance for Returns Revenues for wireless handset and accessory sales are recognized when (i) shipment of the products to customers has occurred and title has passed, (ii) collection of the outstanding receivables are probable and (iii) the final price of the product is determined, which occurs at the time of shipment or delivery, depending on terms of sale. Sales are recorded net of discounts, rebates, cooperative marketing arrangements, returns and allowances. On select sales, the Company may agree to cooperative arrangements wherein the Company agrees to fund future marketing programs related to the products purchased by the customer. Such arrangements are usually agreed to in advance. The amount of the co-op allowance is recorded as a reduction of the sale and added to accrued expenses as a current liability. Subsequent expenditures made pursuant to the arrangements reduce this liability. To the extent the Company incurs costs in excess of the established cooperative fund, the Company recognizes the amount as a selling or marketing expense. As part of the sales process, the Company may perform certain value-added services such as programming, software loading and quality assurance testing. These value-added services are considered an ancillary component of the sales process and amounts attributable to these processes are included in the unit cost to the customer. Furthermore, these value-added services are related to services prior to the shipment of the products, and no value-added services are provided after delivery of the products. The Company recognizes as a reserve against the related receivables estimates for product returns based on historical experience and other judgmental factors, evaluates these estimates on an ongoing basis and adjusts its estimates each period based on actual product return activity. The Company recognizes freight costs billed to its customers in net sales and actual freight costs incurred as a component of cost of sales. Foreign Currency Transactions Certain of the Company’s foreign subsidiaries have a functional currency that is not the U.S. Dollar. Assets and liabilities of such subsidiaries are translated to U.S. Dollars using exchange rates in effect at the balance sheet dates. Revenues and expenses are translated at average exchange rates in effect during the period. Translation adjustments are included in stockholders’ equity in the accompanying consolidated balance sheets as a component of accumulated other comprehensive loss. Comprehensive Income (Loss) Comprehensive income (loss) as defined by U.S. generally accepted accounting principles (GAAP) includes all changes in equity (net assets) during a period from non-owner sources. The Company’s comprehensive loss includes foreign currency translation adjustments, which are excluded from net income (loss) and are reported as a separate component of stockholders’ equity as accumulated other comprehensive loss. Cash and Cash Equivalents For consolidated financial statement purposes, cash equivalents are defined as investments which have an original maturity of ninety days or less from the original date of purchase. Cash and cash equivalents consist of cash on hand and in banks. The Company maintains its cash and cash equivalents balances in banks that from time to time exceed amounts insured by the Federal Deposit Insurance Corporation. As of December 31, 2015 and 2014, the Company maintained deposits totaling $2.2 million and $1.0 million, respectively, with certain financial institutions in excess of federally insured amounts. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash. Trade Accounts Receivable The Company provides for the possible inability to collect accounts receivable by recording an allowance for doubtful accounts. The Company writes off an account when it is considered to be uncollectible. The Company evaluates the collectability of its accounts receivable on an ongoing basis. In circumstances where the Company is aware of a specific customer’s inability to meet its financial obligations, the Company records a specific allowance against amounts due to reduce the net recognized receivable to the amount the Company reasonably believes will be collected. For all other customers, the Company recognizes allowances for doubtful accounts based on the length of time the receivables are past due, the current business environment and the Company’s historical experience. The allowance for doubtful accounts was $95,000 at both December 31, 2015 and 2014. Inventory Inventory is stated at the lower of cost (first-in, first-out) or market and consists primarily of wireless phones and wireless phone accessories. The Company writes down its inventory when it is estimated to be excess or obsolete. As of December 31, 2015 and 2014, the inventory was net of write-downs of $276,000 and $339,000, respectively. From time to time, the Company has prepaid inventory as a result of deposit payments for products which have not been received by the balance sheet date. As of December 31, 2015 and 2014, the prepaid inventory balances included in prepaid assets were $1,232,000 and $2,055,000, respectively. Property and Equipment Property and equipment are stated at cost. The Company provides for depreciation using the straight-line method over estimated useful lives of eighteen months to seven years. Expenditures for maintenance and repairs are charged to operations as incurred while renewals and betterments are capitalized. Gains or losses on the sale of property and equipment are reflected in the statements of operations. Fair Value of Financial Instruments The Company measures its financial instruments in its financial statements at fair value or amounts that approximate fair value. The Company maximizes the use of observable inputs and minimizes the use of unobservable inputs when developing fair value measurements. When available, the Company uses quoted market prices to measure fair value. If market prices are not available, fair value measurement is based upon models that use primarily market-based or independently-sourced market parameters. If market observable inputs for model-based valuation techniques are not available, the Company makes judgments about assumptions market participants would use in estimating the fair value of the financial instrument. Carrying values of cash and cash equivalents, accounts receivable, prepaid expenses, accounts payable, and accrued expenses approximate their fair values due to the short-term nature and liquidity of these financial instruments. Accounting for the Impairment of Long-Lived Assets The Company records impairment losses on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying amount. Management determined that there was no impairment of long-lived assets during the years ended December 31, 2015, 2014 and 2013. Stock-Based Compensation The Company’s share-based compensation plans are described in Note 9. The Company measures compensation cost for all employee stock-based awards at fair value on the date of grant and recognizes compensation expense, net of estimated forfeitures, over the requisite service period, usually the vesting period. Equity instruments issued to non-employees for goods or services are accounted for at fair value and are marked to market until service is complete or a performance commitment date is reached, whichever is earlier. The fair value of stock options is determined using the Black-Scholes valuation model. The Black-Scholes option valuation model was developed for use in estimating the fair value of traded options, which do not have vesting restrictions and are fully transferable. In addition, option valuation models require the input of highly subjective assumptions, including the expected stock price volatility. Because the Company’s employee stock options have characteristics significantly different from those of traded options, and because changes in the subjective input assumptions can materially affect the fair value estimate, in management’s opinion, the existing models do not necessarily provide a reliable single measure of the fair value of its employee stock options. Advertising Expense The Company expenses all advertising costs, including direct response advertising, as they are incurred. Advertising expense for the years ended December 31, 2015, 2014 and 2013 was $992,000, $745,000 and $523,000, respectively. Income Taxes The Company recognizes deferred tax assets and liabilities for the future consequences of events that have been recognized in the Company’s financial statements or tax returns. The measurement of the deferred items is based on enacted tax laws. In the event the future consequences of differences between financial reporting bases and the tax bases of the Company’s assets and liabilities result in a deferred tax asset, the Company performs an evaluation of the probability of being able to realize the future benefits indicated by such asset. A valuation allowance related to a deferred tax asset is recorded when it is more likely than not that some portion or the entire deferred tax asset will not be realized. In addition, the Company recognizes the financial statement impact of a tax position when it is more likely than not that the position will be sustained upon examination. The amount recognized is measured as the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. The Company recognizes interest and penalties related to tax uncertainties as operating expenses. Based on our evaluation, the Company has concluded that there are no significant uncertain tax positions requiring recognition in its financial statements. The Company is subject to U.S. Federal income tax as well as to income tax of multiple state and foreign country jurisdictions. Federal income tax returns of the Company are subject to IRS examination for the 2004 through 2015 tax years. State income tax returns are subject to examination for a period of three to four years after filing. Earnings (Loss) Per Share The Company computes basic earnings (loss) per share by dividing income (loss) available to common stockholders by the weighted-average number of common shares outstanding. Diluted earnings (loss) per share is computed similarly to basic earnings (loss) per share except that the denominator is increased to include the number of additional common shares that would be issued assuming exercise of outstanding stock options. In periods when a net loss is incurred, no additional shares are included in the computation of diluted loss per share because the effect of inclusion would be anti-dilutive. Common shares from exercise of certain options are excluded from the computation of diluted earnings per share when their exercise prices are greater than the Company’s weighted-average stock price for the period. For the years ended December 31, 2015 and 2013, the number of such shares excluded was 20,000 and 756,000, respectively. No such shares were excluded for the year ended December 31, 2014. In addition, because their effect would have been anti-dilutive to the loss calculation, common shares from exercise of in-the-money options for the years ended December 31, 2015 and 2013 of 1,237,000 and 137,000, respectively, have also been excluded from the computation of net loss per share. Geographic Reporting The Company allocates revenues to geographic areas based on the location to which the product was shipped. Estimates and Assumptions The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates and assumptions. Major Suppliers The Company contracts with various suppliers. Although there are a limited number of suppliers that could supply the Company’s inventory, management believes any shortfalls from existing suppliers might be absorbed from other suppliers on comparable terms; however, there are no assurances of such other suppliers providing products on acceptable terms. Furthermore, a change in suppliers could cause a delay in sales and adversely affect results. During the year ended December 31, 2015, the Company’s three largest suppliers accounted for 16%, 15% and 12%, respectively, of total cost of sales. During the year ended December 31, 2014, the Company’s three largest suppliers accounted for 38%, 14% and 12%, respectively, of total cost of sales. During the year ended December 31, 2013, the Company’s three largest suppliers accounted for 38%, 12% and 10%, respectively, of total cost of sales. Concentrations of Credit Risk, Customers and Suppliers Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash equivalents and accounts receivable. We maintain our cash and cash equivalents with various high-credit-quality financial institutions located primarily in the United States. Currently, the Company’s cash balances are kept primarily in demand accounts at these banks, but the Company may periodically invest excess cash in certificates of deposit or money market accounts in order to maintain safety and liquidity. The Company’s investment strategy generally results in lower yields on investments but reduces the risk to principal in the short term prior to these funds being used in its business. The Company has not experienced any material losses on financial instruments held at financial institutions. The Company has historically sold its products primarily to wireless network carriers throughout Latin America, as well as to distributors and value added resellers, or VARs. More recently, the Company began selling its products to distributors in the United States. The Company provides credit to its customers in the normal course of business and generally requires no collateral. Credit risk with respect to accounts receivable is generally concentrated due to the small number of entities comprising the Company’s overall customer base. The Company performs ongoing credit evaluations of its customers and maintains reserves for potential credit losses based upon the Company’s historical experience related to credit losses and any unusual circumstances that may affect the ability of its customers to meet their obligations. The Company’s bad debt expenses have not been significant relative to its total revenues. In each of 2015, 2014 and 2013, three customers represented 10% or more of the Company’s total net sales. The top three customers in 2015 accounted for 18%, 15% and 10%, respectively, of total net sales and represented 35%, 16% and 16% of accounts receivable, respectively, at December 31, 2015. The top three customers in 2014 accounted for 25%, 13% and 11%, respectively, of total net sales and represented 25%, 19% and 14% of accounts receivable, respectively, at December 31, 2014. During 2013, the top three customers accounted for 20%, 14% and 13%, respectively, of total net sales and represented 18%, 15% and 24% of accounts receivable, respectively, at December 31, 2013. For its verykool ® Recently Issued Accounting Pronouncements Recently Adopted: In April 2014, the FASB issued ASU No. 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity”, which changed the criteria for determining which disposals can be presented as discontinued operations and modified 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 was effective on a prospective basis for annual fiscal periods beginning on or after December 15, 2014. The Company adopted this guidance effective January 1, 2015, which adoption did not have an impact on the Company’s consolidated financial statements. Issued (Not adopted yet): In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” which supersedes the revenue recognition requirements in “Revenue Recognition (Topic 605).” This update provides a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. Additionally, this guidance expands related disclosure requirements. ASU 2014-09 is effective for annual and interim reporting periods beginning after December 15, 2017 and early application is not permitted. This update permits the use of either the retrospective or cumulative effect transition method. The Company is currently evaluating the new guidance to determine the impact it will have on its consolidated financial statements as well as the expected adoption method. 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. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842),” which revises the accounting related to lessee accounting. Under the new guidance, lessees will be required to recognize a lease liability and a right-of-use (“ROU”) asset for all leases. For finance leases the lessee would recognize interest expense and amortization of the ROU asset and for operating leases the lessee would recognize a straight-line total lease expense. The new lease guidance also simplified the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. ASU 2016-02 is effective for annual and interim reporting periods within those years beginning after December 15, 2018 and early adoption is permitted. This update should be applied through a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. 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 December 31, 2015 are not expected to have a material effect on the Company’s financial position or results of operations. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | NOTE 4—PROPERTY AND EQUIPMENT Property and equipment are primarily located in the United States and China and consisted of the following as of the dates presented (in thousands): December 31, 2015 2014 Machinery and Equipment $ 322 $ 275 Tooling, Molds and Software 58 56 Furniture and Fixtures 164 102 544 433 Less Accumulated Depreciation 388 296 Total $ 156 $ 137 Depreciation expense was $92,000, $146,000 and $263,000 for the years ended December 31, 2015, 2014 and 2013, respectively. |
Foreign Exchange Hedging Facili
Foreign Exchange Hedging Facility | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Foreign Exchange Hedging Facility | NOTE 5—FOREIGN EXCHANGE HEDGING FACILITY On December 9, 2011, the Company entered into a Foreign Exchange Trading Master Agreement and a Pledge Agreement (collectively, the “Trading Agreement”) with HSBC Bank USA (“HSBC”). Under the terms of the Trading Agreement, the Company and HSBC 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 were denominated in foreign currencies, primarily the Mexican Peso. In order to secure its obligations under the Trading Agreement, the Company deposited $1 million into a restricted account pursuant to a related pledge agreement. In February 2013, the Company elected to terminate the facility due to its limited use and the restricted cash deposit was returned to the Company’s general cash reserves. On January 14, 2016, the Company entered into an Agreement for Purchase and Sale of Foreign Securities (the “Agreement”) with Silicon Valley Bank (“SVB”). Under the Agreement, the Company and SVB can enter into foreign currency spot contracts, forward contracts, forward window contracts and options to manage the Company’s foreign currency risk. |
Line of Credit
Line of Credit | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Line of Credit | NOTE 6—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 could 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 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. On August 4, 2015, the Credit Facility, which contains representations and warranties, affirmative, restrictive and financial covenants, and events of default which are customary for credit facilities of this type, was amended to increase the availability of borrowings under the Credit Facility to $7 million. At December 31, 2015, the Company was in compliance with all covenants, no amounts were drawn against the Credit Facility and $7 million was available for borrowing under the credit line. The maturity date of the Credit Facility is September 27, 2017. |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | NOTE 7—ACCRUED EXPENSES As of December 31, 2015 and 2014, accrued expenses consisted of the following (in thousands): December 31, December 31, Accrued product costs $ 465 $ 893 Accrued coop advertising 567 572 Accrued vacation pay 217 213 Income taxes payable 109 116 Other accruals 985 1,010 Total $ 2,343 $ 2,804 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 8—COMMITMENTS AND CONTINGENCIES Leases The Company leases its corporate and administrative offices, R&D office and certain equipment under operating lease agreements which expire through September 2017. Certain of the agreements contain renewal options. Future minimum payments under these operating lease agreements at December 31, 2015 were $1,100,000. Rent expense was $393,000, $263,000 and $301,000 for the years ended December 31, 2015, 2014 and 2013, respectively. Litigation 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. On February 10, 2014 we filed an answer with the Court stating that we do not infringe and setting forth multiple defenses. A scheduling conference was held on July 31, 2015 and a Markman Hearing was held on February 10, 2016. Trial is scheduled for January 23, 2017. On November 19, 2015, Blue Spike filed an additional 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. 8,930,719. The Company was served with this lawsuit on February 12, 2016, and it is expected that the two lawsuits will be consolidated into one by the Court. We do not believe we infringe the Blue Spike patents and intend to defend ourselves vigorously. Due to the inherent uncertainty of litigation, we cannot identify probable or estimable damages related to these lawsuits at this time. Morpho Komodo Litigation On June 19, 2015, Morpho Komodo LLC (“Morpho Komodo”) 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. Patents No. 7,350,078, No. 7,725,725 and No. 8,429,415. Morpho Komodo is seeking injunctive relief as well as the recovery of unspecified monetary damages. We do not believe we infringe any valid claim of the Morpho Komodo patents and intend to defend ourselves vigorously. On July 21, 2015, we filed an answer with the Court stating that we do not infringe and setting forth multiple defenses, including invalidity of the asserted patents. 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. Employee Agreements and Compensation The Company provides a 401(k) retirement savings plan for all full-time employees. Employees are eligible after 90 days of service with the Company. The Company does not currently provide matching contributions. The Company entered into an employment agreement with its President and Chief Executive Officer in April 2012 that expires in April 2016. The employment agreement provides for an annual salary of $365,000. The agreement also provides that the Company may terminate the agreement without cause upon 30 days written notice. The Company’s only obligation would be to pay its President and Chief Executive Officer the greater of (a) 18 months’ salary or (b) one-half of the salary payable over the remaining term of the agreement. The Company entered into an employment agreement with its Chief Financial Officer in April 2014 that expires in April 2016. The employment agreement provides for an annual salary of $205,000. The agreement also provides that the Company may terminate the agreement upon 30 days written notice if termination was without cause. The Company’s only obligation would be to pay its Chief Financial Officer 9 months’ salary. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Stockholders' Equity | NOTE 9—STOCKHOLDERS’ EQUITY Preferred Stock The Company has authorized the issuance of 10,000,000 shares of preferred stock, which may be issued from time to time in one or more series by the Board of Directors. In addition, the Board is authorized to set the rights, preferences, privileges and restrictions of these shares, including dividends rights, conversion rights, voting rights and liquidation preferences. These shares may have rights senior to those of the Company’s common stock holders. As of December 31, 2015 and 2014, the Company did not have any preferred shares outstanding. Common Stock The Company has authorized the issuance of 40,000,000 shares of common stock. As of December 31, 2015 and 2014, a total of 14,388,728 and 14,358,062 shares, respectively, were outstanding. Stock Options The Company has two stock-based compensation plans: the 2006 Equity Incentive Plan (“2006 Plan”) and the 2015 Equity Incentive Plan (“2015 Plan”), both of which were approved by our stockholders. As of December 31, 2015, options to purchase 942,000 and 315,000 shares were outstanding under the 2006 Plan and the 2015 Plan, respectively, and a total of 899,000 shares were available for grant under the 2015 Plan. No options or other equity awards are available for grant under the 2006 Plan. The 2015 Plan was approved by stockholders in June 2015, with 1,205,749 shares of the Company’s common stock authorized for issuance there-under. Shares subject to outstanding options under the 2006 Plan that cease to be subject to such options, such as by expiration or forfeiture, also become available for issuance under the 2015 Plan, up to an aggregate maximum of 958,668 shares. The 2015 Plan is intended to provide incentives to key employees, officers, directors and consultants who provide significant services to the Company. The exercise price is determined by the Compensation Committee, but must be at least equal to the fair market value of the common stock on the date of grant of such option. The Compensation Committee also establishes the vesting schedule for each option granted and the term of each option, which cannot exceed 10 years from the date of grant. In the event of termination, vested options generally must be exercised within three months. In a change of control, if outstanding awards under the 2015 Plan are assumed or substituted by a successor company, such awards do not automatically fully vest but may become fully vested in the event of a qualifying termination following such change of control. Outstanding options granted under the 2006 Plan provide 100% vesting upon a change of control of the Company. 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. Options granted generally vest over a two-year or three-year period. 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. Under current U.S. federal tax law, we would 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 which results in a deferred tax asset and a corresponding deferred tax benefit in the income statement. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions used for grants in 2015, 2014 and 2013: risk-free interest rates of 1.94%, 1.56% and 1.81%, respectively, based on the U.S. Treasury yields in effect at the time of grant; expected dividend yields of 0% as the Company has not, and does not intend to, issue dividends; and expected lives of 4 to 6 years based upon the historical life of the Company’s options. For grants in 2015, 2014 and 2013, the expected volatility used ranged from 93% to 102% based on the Company’s historical stock price fluctuations for a period matching the expected life of the options. A summary of stock option activity for the year ended December 31, 2015 is as follows (shares and aggregate intrinsic value in thousands): Shares Wtd. Avg. Wtd. Avg. Aggregate Outstanding at December 31, 2014 980 $ 0.85 Granted 315 $ 1.61 Exercised (30 ) $ 0.89 Forfeited (8 ) $ 1.31 Outstanding at December 31, 2015 1,257 $ 1.04 4.51 years $ 708 Vested and expected to vest 1,179 $ 1.00 4.40 years $ 699 Exercisable at December 31, 2015 807 $ 0.77 3.38 years $ 656 The aggregate intrinsic value in the stock option summary table above is based on our closing stock price of $1.58 per share as of December 31, 2015. 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 ® verykool ® 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. The amount of expense recorded during the year ended December 31, 2013 was $40,000. No expense was recorded in the years ended December 31, 2015 and 2014. A summary of the status of the Company’s non-vested options at December 31, 2015, and changes during the year then ended are presented below (shares in thousands): Shares Weighted-average grant-date fair value Non-vested at December 31, 2014 412 $ 0.82 Granted 315 $ 1.25 Vested (269 ) $ 0.76 Forfeited (8 ) $ 0.93 Non-vested at December 31, 2015 450 $ 1.16 The weighted-average per share grant-date fair values of options granted during 2015, 2014 and 2013 were $1.25, $0.93 and $0.58, respectively. During the year ended December 31, 2015, a total of 30,000 option shares were exercised and the Company received $27,000 in cash, or an average of $0.89 per share, from these exercises. During the year ended December 31, 2014, a total of 174,000 option shares were exercised and the Company received $137,000 in cash, or an average of $0.79 per share, from these exercises. There were no option exercises during the year ended December 31, 2013. The unrecognized stock-based compensation expense for future periods as of December 31, 2015 is $407,000, which is expected to be recognized over a weighted-average period of approximately 1.7 years. Such amount may change as a result of future grants, forfeitures, modifications in assumptions and other factors. The total fair value of options that vested during 2015, 2014 and 2013 was $205,000, $80,000 and $68,000, respectively. The following table summarizes share-based compensation expense for the years ended December 31 (in thousands): 2015 2014 2013 Selling, general and administrative: Non-employee directors $ 47 $ 19 $ 11 Officers 97 39 40 Others 74 28 18 Total SG&A 218 86 69 Research and development — — 40 Total share-based compensation expense before taxes 218 86 109 Related deferred income tax benefits — — — Share-based compensation expense $ 218 $ 86 $ 109 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 10—INCOME TAXES The Company is subject to US federal income tax as well as income tax in multiple states and foreign jurisdictions. For all major taxing jurisdictions, the tax years 2004 through 2015 remain open to examination by the taxing authorities due to the carryforward of unutilized net operating losses. As of December 31, 2015, the Company does not expect any material changes to unrecognized tax positions within the next twelve months. Components of the income tax provision are as follows for the years ended December 31 (in thousands): 2015 2014 2013 Current tax provision: Federal $ — $ — $ (49 ) State (3 ) (3 ) (2 ) Foreign — (11 ) — Total (3 ) (14 ) (51 ) Deferred tax benefit (provision): Federal (31 ) (437 ) (205 ) State 12 (2 ) (200 ) Total (19 ) (439 ) (405 ) Change in valuation allowance 19 439 405 Total provision for income taxes $ (3 ) $ (14 ) $ (51 ) A reconciliation of income taxes computed by applying the federal statutory income tax rate of 34.0% to income (loss) before income taxes to the recognized income tax provision reported in the accompanying consolidated statements of operations is as follows for the years ended December 31 (in thousands): 2015 2014 2013 U.S. federal income tax at statutory rate $ 422 $ (94 ) $ 185 State taxes, net of federal benefit 6 (5 ) (23 ) Non-deductible expenses (10 ) (9 ) (8 ) Foreign income tax rate differential (443 ) (265 ) (283 ) Valuation allowance 19 439 405 Foreign earnings — — (182 ) Other 3 (80 ) (145 ) Total provision for income taxes $ (3 ) $ (14 ) $ (51 ) Deferred income taxes reflect the net effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The Company has recorded a full valuation allowance against its deferred tax assets, as realization of such assets is uncertain based on the Company’s history of operating losses. Significant components of deferred tax assets and liabilities are shown below (in thousands): December 31, 2015 2014 Current deferred tax assets: Allowance for bad debts $ 34 $ 33 Share-based payment expense 220 145 Allowance for obsolete inventory 98 119 Accrued compensation 77 75 Contribution carryover 2 — Other accruals 73 106 Total 504 478 Non-current deferred tax assets: Depreciation 11 5 Capital loss 179 178 Net operating loss 3,118 3,170 Credit carryover 49 49 Total 3,357 3,402 Valuation allowance (3,861 ) (3,880 ) Net deferred tax assets $ — $ — At December 31, 2015, the Company had federal and state net operating loss carry forwards of approximately $9,927,000 and $13,490,000, respectively. The federal and state net operating loss carry forwards begin to expire in 2024 and 2016, respectively. Included in the net operating loss carryforward balances noted above are approximately $2,431,000 and $1,067,000, for federal and state purposes, respectively, which are attributed to the exercise of non-qualified stock options for which the tax effect will be a component of the Company’s Additional Paid in Capital. Pursuant to Internal Revenue Code Section 382, use of the Company’s net operating loss carry forwards will be limited if a cumulative change in ownership of more than 50% occurs within a three-year period. Following the Company’s adoption on January 1, 2007 of ASC 740-10 regarding accounting for uncertainty in income taxes, the Company made a comprehensive review of its portfolio of uncertain tax positions in accordance with the guidance. 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 that review, the Company concluded there were no uncertain tax positions and no cumulative effect on retained earnings at the time of adoption. Subsequent to that date of adoption through December 31, 2015, the Company has continued to evaluate its tax positions and concluded that it has not had any material uncertain tax positions. |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | NOTE 11—SEGMENT AND GEOGRAPHIC INFORMATION The Company reports segment data based on the management approach, which designates the internal reporting that is used by management for making operating and investment decisions and evaluating performance as the source of the Company’s reportable segments. The Company uses one measurement of profitability and does not disaggregate its business for internal reporting. The Company has determined that it has operated in one segment and has provided wireless handsets and accessories to carriers, distributors and OEM customers in Latin America, Asia Pacific, Europe, Africa and the United States for the years covered in the table below. The table summarizes the Company’s net sales by geographic area for the years ended December 31, 2015, 2014 and 2013 (in thousands): 2015 2014 2013 Central America $ 8,223 $ 15,887 $ 17,296 South America 9,879 12,767 9,048 Mexico 13,339 8,063 2,908 U.S.-based distributors selling to Latin America 11,853 7,240 6,422 United States 4,511 2,582 1,051 EMEA — 1,530 961 Asia Pacific 28 75 209 Total $ 47,833 $ 48,144 $ 37,895 During the year ended December 31, 2015 sales to customers in Mexico, Peru and Guatemala represented 28%, 10% and 10% of the Company’s consolidated net revenue, respectively. Also in 2015, sales to a U.S.-based distributor who sells into the open market in Central America represented 18% of net revenue. In 2014, sales to customers in Peru, Mexico, Puerto Rico and to the same U.S.-based distributor selling into Central America represented 25%, 17%, 12% and 11% of the Company’s consolidated net revenue, respectively. In 2013, sales to customers in Peru, Guatemala, Puerto Rico and to the same U.S.-based distributor selling into Central America represented 20%, 15%, 13% and 14% of the Company’s consolidated net revenue, respectively. Sales in no other individual country amounted to 10% or more of the Company’s consolidated net revenue in any of the three years covered above. Fixed assets, which represent approximately 1% of the Company’s net assets, are principally located in the Company’s offices in the United States or in China at the Company’s quality and production control office or contract manufacturing facilities. |
Quarterly Financial Information
Quarterly Financial Information | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | NOTE 12—QUARTERLY FINANCIAL INFORMATION (Unaudited) The following table presents unaudited selected quarterly financial information (in thousands, except per share data) for the periods indicated. This information has been derived from the Company’s unaudited quarterly consolidated financial statements, which in the opinion of management include adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of such information. These operating results are not necessarily indicative of results for any future period. First Second Third Fourth Year Ended December 31, 2015 Net sales $ 14,517 $ 10,945 $ 12,179 $ 10,192 Gross profit 2,554 1,608 2,001 1,256 Net income (loss) 532 (678 ) (138 ) (959 ) Basic and diluted net income (loss) per share 0.04 (0.05 ) (0.01 ) (0.07 ) Year Ended December 31, 2014 Net sales $ 11,624 $ 10,445 $ 8,138 $ 17,937 Gross profit 2,073 2,029 1,195 2,956 Net income (loss) 55 109 (633 ) 730 Basic and diluted net income (loss) per share 0.00 0.01 (0.04 ) 0.05 |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | SUPPLEMENTAL INFORMATION (Amounts in thousands) Balance, Additions charged to Deletions Balance, Allowance for doubtful accounts: Year ended December 31, 2015 $ 95 $ — $ — $ 95 Year ended December 31, 2014 373 — 278 95 Year ended December 31, 2013 339 34 — 373 |
Summary of Significant Accoun20
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Principles of Consolidation | Principles of Consolidation The Consolidated Financial Statements include the accounts of InfoSonics and its wholly owned subsidiaries as listed in Note 1. All significant intercompany accounts and transactions are eliminated in consolidation. |
Revenue Recognition and Allowance for Returns | Revenue Recognition and Allowance for Returns Revenues for wireless handset and accessory sales are recognized when (i) shipment of the products to customers has occurred and title has passed, (ii) collection of the outstanding receivables are probable and (iii) the final price of the product is determined, which occurs at the time of shipment or delivery, depending on terms of sale. Sales are recorded net of discounts, rebates, cooperative marketing arrangements, returns and allowances. On select sales, the Company may agree to cooperative arrangements wherein the Company agrees to fund future marketing programs related to the products purchased by the customer. Such arrangements are usually agreed to in advance. The amount of the co-op allowance is recorded as a reduction of the sale and added to accrued expenses as a current liability. Subsequent expenditures made pursuant to the arrangements reduce this liability. To the extent the Company incurs costs in excess of the established cooperative fund, the Company recognizes the amount as a selling or marketing expense. As part of the sales process, the Company may perform certain value-added services such as programming, software loading and quality assurance testing. These value-added services are considered an ancillary component of the sales process and amounts attributable to these processes are included in the unit cost to the customer. Furthermore, these value-added services are related to services prior to the shipment of the products, and no value-added services are provided after delivery of the products. The Company recognizes as a reserve against the related receivables estimates for product returns based on historical experience and other judgmental factors, evaluates these estimates on an ongoing basis and adjusts its estimates each period based on actual product return activity. The Company recognizes freight costs billed to its customers in net sales and actual freight costs incurred as a component of cost of sales. |
Foreign Currency Transactions | Foreign Currency Transactions Certain of the Company’s foreign subsidiaries have a functional currency that is not the U.S. Dollar. Assets and liabilities of such subsidiaries are translated to U.S. Dollars using exchange rates in effect at the balance sheet dates. Revenues and expenses are translated at average exchange rates in effect during the period. Translation adjustments are included in stockholders’ equity in the accompanying consolidated balance sheets as a component of accumulated other comprehensive loss. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) as defined by U.S. generally accepted accounting principles (GAAP) includes all changes in equity (net assets) during a period from non-owner sources. The Company’s comprehensive loss includes foreign currency translation adjustments, which are excluded from net income (loss) and are reported as a separate component of stockholders’ equity as accumulated other comprehensive loss. |
Cash and Cash Equivalents | Cash and Cash Equivalents For consolidated financial statement purposes, cash equivalents are defined as investments which have an original maturity of ninety days or less from the original date of purchase. Cash and cash equivalents consist of cash on hand and in banks. The Company maintains its cash and cash equivalents balances in banks that from time to time exceed amounts insured by the Federal Deposit Insurance Corporation. As of December 31, 2015 and 2014, the Company maintained deposits totaling $2.2 million and $1.0 million, respectively, with certain financial institutions in excess of federally insured amounts. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash. |
Trade Accounts Receivable | Trade Accounts Receivable The Company provides for the possible inability to collect accounts receivable by recording an allowance for doubtful accounts. The Company writes off an account when it is considered to be uncollectible. The Company evaluates the collectability of its accounts receivable on an ongoing basis. In circumstances where the Company is aware of a specific customer’s inability to meet its financial obligations, the Company records a specific allowance against amounts due to reduce the net recognized receivable to the amount the Company reasonably believes will be collected. For all other customers, the Company recognizes allowances for doubtful accounts based on the length of time the receivables are past due, the current business environment and the Company’s historical experience. The allowance for doubtful accounts was $95,000 at both December 31, 2015 and 2014. |
Inventory | Inventory Inventory is stated at the lower of cost (first-in, first-out) or market and consists primarily of wireless phones and wireless phone accessories. The Company writes down its inventory when it is estimated to be excess or obsolete. As of December 31, 2015 and 2014, the inventory was net of write-downs of $276,000 and $339,000, respectively. From time to time, the Company has prepaid inventory as a result of deposit payments for products which have not been received by the balance sheet date. As of December 31, 2015 and 2014, the prepaid inventory balances included in prepaid assets were $1,232,000 and $2,055,000, respectively. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost. The Company provides for depreciation using the straight-line method over estimated useful lives of eighteen months to seven years. Expenditures for maintenance and repairs are charged to operations as incurred while renewals and betterments are capitalized. Gains or losses on the sale of property and equipment are reflected in the statements of operations. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company measures its financial instruments in its financial statements at fair value or amounts that approximate fair value. The Company maximizes the use of observable inputs and minimizes the use of unobservable inputs when developing fair value measurements. When available, the Company uses quoted market prices to measure fair value. If market prices are not available, fair value measurement is based upon models that use primarily market-based or independently-sourced market parameters. If market observable inputs for model-based valuation techniques are not available, the Company makes judgments about assumptions market participants would use in estimating the fair value of the financial instrument. Carrying values of cash and cash equivalents, accounts receivable, prepaid expenses, accounts payable, and accrued expenses approximate their fair values due to the short-term nature and liquidity of these financial instruments. |
Accounting for the Impairment of Long-Lived Assets | Accounting for the Impairment of Long-Lived Assets The Company records impairment losses on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying amount. Management determined that there was no impairment of long-lived assets during the years ended December 31, 2015, 2014 and 2013. |
Stock-Based Compensation | Stock-Based Compensation The Company’s share-based compensation plans are described in Note 9. The Company measures compensation cost for all employee stock-based awards at fair value on the date of grant and recognizes compensation expense, net of estimated forfeitures, over the requisite service period, usually the vesting period. Equity instruments issued to non-employees for goods or services are accounted for at fair value and are marked to market until service is complete or a performance commitment date is reached, whichever is earlier. The fair value of stock options is determined using the Black-Scholes valuation model. The Black-Scholes option valuation model was developed for use in estimating the fair value of traded options, which do not have vesting restrictions and are fully transferable. In addition, option valuation models require the input of highly subjective assumptions, including the expected stock price volatility. Because the Company’s employee stock options have characteristics significantly different from those of traded options, and because changes in the subjective input assumptions can materially affect the fair value estimate, in management’s opinion, the existing models do not necessarily provide a reliable single measure of the fair value of its employee stock options. |
Advertising Expense | Advertising Expense The Company expenses all advertising costs, including direct response advertising, as they are incurred. Advertising expense for the years ended December 31, 2015, 2014 and 2013 was $992,000, $745,000 and $523,000, respectively. |
Income Taxes | Income Taxes The Company recognizes deferred tax assets and liabilities for the future consequences of events that have been recognized in the Company’s financial statements or tax returns. The measurement of the deferred items is based on enacted tax laws. In the event the future consequences of differences between financial reporting bases and the tax bases of the Company’s assets and liabilities result in a deferred tax asset, the Company performs an evaluation of the probability of being able to realize the future benefits indicated by such asset. A valuation allowance related to a deferred tax asset is recorded when it is more likely than not that some portion or the entire deferred tax asset will not be realized. In addition, the Company recognizes the financial statement impact of a tax position when it is more likely than not that the position will be sustained upon examination. The amount recognized is measured as the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. The Company recognizes interest and penalties related to tax uncertainties as operating expenses. Based on our evaluation, the Company has concluded that there are no significant uncertain tax positions requiring recognition in its financial statements. The Company is subject to U.S. Federal income tax as well as to income tax of multiple state and foreign country jurisdictions. Federal income tax returns of the Company are subject to IRS examination for the 2004 through 2015 tax years. State income tax returns are subject to examination for a period of three to four years after filing. |
Earnings (Loss) Per Share | Earnings (Loss) Per Share The Company computes basic earnings (loss) per share by dividing income (loss) available to common stockholders by the weighted-average number of common shares outstanding. Diluted earnings (loss) per share is computed similarly to basic earnings (loss) per share except that the denominator is increased to include the number of additional common shares that would be issued assuming exercise of outstanding stock options. In periods when a net loss is incurred, no additional shares are included in the computation of diluted loss per share because the effect of inclusion would be anti-dilutive. Common shares from exercise of certain options are excluded from the computation of diluted earnings per share when their exercise prices are greater than the Company’s weighted-average stock price for the period. For the years ended December 31, 2015 and 2013, the number of such shares excluded was 20,000 and 756,000, respectively. No such shares were excluded for the year ended December 31, 2014. In addition, because their effect would have been anti-dilutive to the loss calculation, common shares from exercise of in-the-money options for the years ended December 31, 2015 and 2013 of 1,237,000 and 137,000, respectively, have also been excluded from the computation of net loss per share. |
Geographic Reporting | Geographic Reporting The Company allocates revenues to geographic areas based on the location to which the product was shipped. |
Estimates and Assumptions | Estimates and Assumptions The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates and assumptions. |
Major Suppliers | Major Suppliers The Company contracts with various suppliers. Although there are a limited number of suppliers that could supply the Company’s inventory, management believes any shortfalls from existing suppliers might be absorbed from other suppliers on comparable terms; however, there are no assurances of such other suppliers providing products on acceptable terms. Furthermore, a change in suppliers could cause a delay in sales and adversely affect results. During the year ended December 31, 2015, the Company’s three largest suppliers accounted for 16%, 15% and 12%, respectively, of total cost of sales. During the year ended December 31, 2014, the Company’s three largest suppliers accounted for 38%, 14% and 12%, respectively, of total cost of sales. During the year ended December 31, 2013, the Company’s three largest suppliers accounted for 38%, 12% and 10%, respectively, of total cost of sales. |
Concentrations of Credit Risk, Customers and Suppliers | Concentrations of Credit Risk, Customers and Suppliers Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash equivalents and accounts receivable. We maintain our cash and cash equivalents with various high-credit-quality financial institutions located primarily in the United States. Currently, the Company’s cash balances are kept primarily in demand accounts at these banks, but the Company may periodically invest excess cash in certificates of deposit or money market accounts in order to maintain safety and liquidity. The Company’s investment strategy generally results in lower yields on investments but reduces the risk to principal in the short term prior to these funds being used in its business. The Company has not experienced any material losses on financial instruments held at financial institutions. The Company has historically sold its products primarily to wireless network carriers throughout Latin America, as well as to distributors and value added resellers, or VARs. More recently, the Company began selling its products to distributors in the United States. The Company provides credit to its customers in the normal course of business and generally requires no collateral. Credit risk with respect to accounts receivable is generally concentrated due to the small number of entities comprising the Company’s overall customer base. The Company performs ongoing credit evaluations of its customers and maintains reserves for potential credit losses based upon the Company’s historical experience related to credit losses and any unusual circumstances that may affect the ability of its customers to meet their obligations. The Company’s bad debt expenses have not been significant relative to its total revenues. In each of 2015, 2014 and 2013, three customers represented 10% or more of the Company’s total net sales. The top three customers in 2015 accounted for 18%, 15% and 10%, respectively, of total net sales and represented 35%, 16% and 16% of accounts receivable, respectively, at December 31, 2015. The top three customers in 2014 accounted for 25%, 13% and 11%, respectively, of total net sales and represented 25%, 19% and 14% of accounts receivable, respectively, at December 31, 2014. During 2013, the top three customers accounted for 20%, 14% and 13%, respectively, of total net sales and represented 18%, 15% and 24% of accounts receivable, respectively, at December 31, 2013. For its verykool ® |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Recently Adopted: In April 2014, the FASB issued ASU No. 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity”, which changed the criteria for determining which disposals can be presented as discontinued operations and modified 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 was effective on a prospective basis for annual fiscal periods beginning on or after December 15, 2014. The Company adopted this guidance effective January 1, 2015, which adoption did not have an impact on the Company’s consolidated financial statements. Issued (Not adopted yet): In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” which supersedes the revenue recognition requirements in “Revenue Recognition (Topic 605).” This update provides a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. Additionally, this guidance expands related disclosure requirements. ASU 2014-09 is effective for annual and interim reporting periods beginning after December 15, 2017 and early application is not permitted. This update permits the use of either the retrospective or cumulative effect transition method. The Company is currently evaluating the new guidance to determine the impact it will have on its consolidated financial statements as well as the expected adoption method. 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. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842),” which revises the accounting related to lessee accounting. Under the new guidance, lessees will be required to recognize a lease liability and a right-of-use (“ROU”) asset for all leases. For finance leases the lessee would recognize interest expense and amortization of the ROU asset and for operating leases the lessee would recognize a straight-line total lease expense. The new lease guidance also simplified the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. ASU 2016-02 is effective for annual and interim reporting periods within those years beginning after December 15, 2018 and early adoption is permitted. This update should be applied through a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. 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 December 31, 2015 are not expected to have a material effect on the Company’s financial position or results of operations. |
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. The amount of expense recorded during the year ended December 31, 2013 was $40,000. No expense was recorded in the years ended December 31, 2015 and 2014. |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and Equipment | Property and equipment are primarily located in the United States and China and consisted of the following as of the dates presented (in thousands): December 31, 2015 2014 Machinery and Equipment $ 322 $ 275 Tooling, Molds and Software 58 56 Furniture and Fixtures 164 102 544 433 Less Accumulated Depreciation 388 296 Total $ 156 $ 137 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | As of December 31, 2015 and 2014, accrued expenses consisted of the following (in thousands): December 31, December 31, Accrued product costs $ 465 $ 893 Accrued coop advertising 567 572 Accrued vacation pay 217 213 Income taxes payable 109 116 Other accruals 985 1,010 Total $ 2,343 $ 2,804 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Summary of Option Activity | A summary of stock option activity for the year ended December 31, 2015 is as follows (shares and aggregate intrinsic value in thousands): Shares Wtd. Avg. Wtd. Avg. Aggregate Outstanding at December 31, 2014 980 $ 0.85 Granted 315 $ 1.61 Exercised (30 ) $ 0.89 Forfeited (8 ) $ 1.31 Outstanding at December 31, 2015 1,257 $ 1.04 4.51 years $ 708 Vested and expected to vest 1,179 $ 1.00 4.40 years $ 699 Exercisable at December 31, 2015 807 $ 0.77 3.38 years $ 656 |
Summary of Non-Vested Options | A summary of the status of the Company’s non-vested options at December 31, 2015, and changes during the year then ended are presented below (shares in thousands): Shares Weighted-average grant-date fair value Non-vested at December 31, 2014 412 $ 0.82 Granted 315 $ 1.25 Vested (269 ) $ 0.76 Forfeited (8 ) $ 0.93 Non-vested at December 31, 2015 450 $ 1.16 |
Summary of Share-Based Compensation Expense | The following table summarizes share-based compensation expense for the years ended December 31 (in thousands): 2015 2014 2013 Selling, general and administrative: Non-employee directors $ 47 $ 19 $ 11 Officers 97 39 40 Others 74 28 18 Total SG&A 218 86 69 Research and development — — 40 Total share-based compensation expense before taxes 218 86 109 Related deferred income tax benefits — — — Share-based compensation expense $ 218 $ 86 $ 109 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Provision | Components of the income tax provision are as follows for the years ended December 31 (in thousands): 2015 2014 2013 Current tax provision: Federal $ — $ — $ (49 ) State (3 ) (3 ) (2 ) Foreign — (11 ) — Total (3 ) (14 ) (51 ) Deferred tax benefit (provision): Federal (31 ) (437 ) (205 ) State 12 (2 ) (200 ) Total (19 ) (439 ) (405 ) Change in valuation allowance 19 439 405 Total provision for income taxes $ (3 ) $ (14 ) $ (51 ) |
Reconciliation of Income Taxes | A reconciliation of income taxes computed by applying the federal statutory income tax rate of 34.0% to income (loss) before income taxes to the recognized income tax provision reported in the accompanying consolidated statements of operations is as follows for the years ended December 31 (in thousands): 2015 2014 2013 U.S. federal income tax at statutory rate $ 422 $ (94 ) $ 185 State taxes, net of federal benefit 6 (5 ) (23 ) Non-deductible expenses (10 ) (9 ) (8 ) Foreign income tax rate differential (443 ) (265 ) (283 ) Valuation allowance 19 439 405 Foreign earnings — — (182 ) Other 3 (80 ) (145 ) Total provision for income taxes $ (3 ) $ (14 ) $ (51 ) |
Significant Components of Deferred Tax Assets and Liabilities | Significant components of deferred tax assets and liabilities are shown below (in thousands): December 31, 2015 2014 Current deferred tax assets: Allowance for bad debts $ 34 $ 33 Share-based payment expense 220 145 Allowance for obsolete inventory 98 119 Accrued compensation 77 75 Contribution carryover 2 — Other accruals 73 106 Total 504 478 Non-current deferred tax assets: Depreciation 11 5 Capital loss 179 178 Net operating loss 3,118 3,170 Credit carryover 49 49 Total 3,357 3,402 Valuation allowance (3,861 ) (3,880 ) Net deferred tax assets $ — $ — |
Segment and Geographic Inform25
Segment and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Sales by Geographical Area | The table summarizes the Company’s net sales by geographic area for the years ended December 31, 2015, 2014 and 2013 (in thousands): 2015 2014 2013 Central America $ 8,223 $ 15,887 $ 17,296 South America 9,879 12,767 9,048 Mexico 13,339 8,063 2,908 U.S.-based distributors selling to Latin America 11,853 7,240 6,422 United States 4,511 2,582 1,051 EMEA — 1,530 961 Asia Pacific 28 75 209 Total $ 47,833 $ 48,144 $ 37,895 |
Quarterly Financial Informati26
Quarterly Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | These operating results are not necessarily indicative of results for any future period. First Second Third Fourth Year Ended December 31, 2015 Net sales $ 14,517 $ 10,945 $ 12,179 $ 10,192 Gross profit 2,554 1,608 2,001 1,256 Net income (loss) 532 (678 ) (138 ) (959 ) Basic and diluted net income (loss) per share 0.04 (0.05 ) (0.01 ) (0.07 ) Year Ended December 31, 2014 Net sales $ 11,624 $ 10,445 $ 8,138 $ 17,937 Gross profit 2,073 2,029 1,195 2,956 Net income (loss) 55 109 (633 ) 730 Basic and diluted net income (loss) per share 0.00 0.01 (0.04 ) 0.05 |
Restructuring and R&D Expense -
Restructuring and R&D Expense - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | ||||
Jun. 30, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012Employees | |
Restructuring Cost and Reserve [Line Items] | ||||||
Research and development expense | $ 100,000 | $ 0 | $ 588,000 | $ 1,336,000 | ||
Restructuring cost incurred | $ 192,000 | |||||
Payment of severance and other costs | $ 134,000 | |||||
China [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Number of reduced employees | Employees | 21 | |||||
Percentage of reduced employees worldwide | 20.00% |
Summary of Significant Accoun28
Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2015USD ($)CustomerManufacturershares | Dec. 31, 2014USD ($)Customershares | Dec. 31, 2013USD ($)Customershares | |
Summary Of Significant Accounting Policies [Line Items] | |||
Maturity of cash equivalents | 90 days | ||
Deposits with certain financial institutions | $ 2,200,000 | $ 1,000,000 | |
Accounts receivable, allowance for doubtful accounts | 95,000 | 95,000 | |
Inventory net of write-downs | 276,000 | 339,000 | |
Prepaid inventory balances included in prepaid assets | 1,232,000 | 2,055,000 | |
Impairment of long-lived assets | 0 | 0 | $ 0 |
Advertising expense | $ 992,000 | $ 745,000 | $ 523,000 |
Percentage of tax benefit likely to being realized upon settlement | 50.00% | ||
Uncertain tax positions | $ 0 | ||
Years under examination, description | Company are subject to IRS examination for the 2004 through 2015 tax years | ||
Year under examination | 2,004 | ||
Year under examination one | 2,015 | ||
Anti-dilutive securities excluded from computation of earnings per share | shares | 20,000 | 0 | 756,000 |
Number of manufactures | Manufacturer | 21 | ||
In The Money Option [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Anti-dilutive securities excluded from computation of earnings per share | shares | 1,237,000 | 137,000 | |
Supplier Concentration Risk [Member] | Cost of Goods, Product Line [Member] | Major Supplier One [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Concentration Risk, Percentage | 16.00% | ||
Supplier Concentration Risk [Member] | Cost of Goods, Product Line [Member] | Major Supplier Two [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Concentration Risk, Percentage | 15.00% | ||
Supplier Concentration Risk [Member] | Cost of Goods, Product Line [Member] | Major Supplier Three [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Concentration Risk, Percentage | 12.00% | ||
Supplier Concentration Risk [Member] | Cost of Goods, Total [Member] | Major Supplier One [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Concentration Risk, Percentage | 16.00% | 38.00% | 38.00% |
Supplier Concentration Risk [Member] | Cost of Goods, Total [Member] | Major Supplier Two [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Concentration Risk, Percentage | 15.00% | 14.00% | 12.00% |
Supplier Concentration Risk [Member] | Cost of Goods, Total [Member] | Major Supplier Three [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Concentration Risk, Percentage | 12.00% | 12.00% | 10.00% |
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Concentration Risk, Percentage | 10.00% | 10.00% | 10.00% |
Number of customers | Customer | 3 | 3 | 3 |
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | Major Customer One [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Concentration Risk, Percentage | 18.00% | 25.00% | 20.00% |
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | Major Customer Two [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Concentration Risk, Percentage | 15.00% | 13.00% | 14.00% |
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | Major Customer Three [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Concentration Risk, Percentage | 10.00% | 11.00% | 13.00% |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Major Customer One [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Concentration Risk, Percentage | 35.00% | 25.00% | 18.00% |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Major Customer Two [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Concentration Risk, Percentage | 16.00% | 19.00% | 15.00% |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Major Customer Three [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Concentration Risk, Percentage | 16.00% | 14.00% | 24.00% |
Minimum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives of property and equipment | 18 months | ||
State income tax | 3 years | ||
Maximum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives of property and equipment | 7 years | ||
State income tax | 4 years |
Property and Equipment - Summar
Property and Equipment - Summary of Property and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 544 | $ 433 |
Less Accumulated Depreciation | 388 | 296 |
Total | 156 | 137 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 322 | 275 |
Tooling, Molds and Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 58 | 56 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 164 | $ 102 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 92 | $ 146 | $ 263 |
Foreign Exchange Hedging Faci31
Foreign Exchange Hedging Facility - Additional Information (Detail) - Foreign Exchange Forward [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 09, 2011 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Obligations under restricted cash | $ 1 | |
Termination date of facility | 2013-02 |
Line of Credit - Additional Inf
Line of Credit - Additional Information (Detail) - Agreement [Member] - Silicon Valley Bank [Member] - USD ($) | Mar. 27, 2014 | Dec. 31, 2015 | Aug. 04, 2015 |
Line of Credit Facility [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 2,000,000 | $ 7,000,000 | |
Line of credit facility, interest rate description | Borrowings under the Credit Facility 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 | ||
Line of credit facility available | $ 7,000,000 | ||
Credit facility maturity date | Sep. 27, 2017 | ||
Domestic receivables [Member] | |||
Line of Credit Facility [Line Items] | |||
Eligible accounts receivable, advance rate | 80.00% | ||
Domestic receivables [Member] | Prime rate [Member] | |||
Line of Credit Facility [Line Items] | |||
Credit Facility interest rate | 4.50% | ||
Foreign receivables [Member] | |||
Line of Credit Facility [Line Items] | |||
Eligible accounts receivable, advance rate | 70.00% | ||
Foreign receivables [Member] | Prime rate [Member] | |||
Line of Credit Facility [Line Items] | |||
Credit Facility interest rate | 3.53% |
Accrued Expenses - Schedule of
Accrued Expenses - Schedule of Accrued Expenses (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Payables and Accruals [Abstract] | ||
Accrued product costs | $ 465 | $ 893 |
Accrued coop advertising | 567 | 572 |
Accrued vacation pay | 217 | 213 |
Income taxes payable | 109 | 116 |
Other accruals | 985 | 1,010 |
Total | $ 2,343 | $ 2,804 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Loss Contingencies [Line Items] | |||
Lease expiration term | Sep. 30, 2017 | ||
Future minimum payments under operating lease agreements | $ 1,100,000 | ||
Rent expense | $ 393,000 | $ 263,000 | $ 301,000 |
Eligibility for 401(k) retirement savings plan | 90 days | ||
401(k) retirement savings plan matching contributions | $ 0 | ||
President and Chief Executive Officer [Member] | |||
Loss Contingencies [Line Items] | |||
Employment agreement start date | 2012-04 | ||
Employment agreement expiry date | 2016-04 | ||
Annual salary under agreement | $ 365,000 | ||
Agreement termination condition | 30 days | ||
Minimum salary period to determine company's obligation under condition | 18 months | ||
Minimum percentage of salary payable to determine company's obligation | 50.00% | ||
Chief Financial Officer [Member] | |||
Loss Contingencies [Line Items] | |||
Employment agreement start date | 2014-04 | ||
Employment agreement expiry date | 2016-04 | ||
Annual salary under agreement | $ 205,000 | ||
Agreement termination condition | 30 days | ||
Minimum salary period to determine company's obligation under condition | 9 months | ||
Blue Spike Litigation [Member] | |||
Loss Contingencies [Line Items] | |||
Lawsuit filing date | Oct. 8, 2013 | ||
Additional lawsuit filing date | Nov. 19, 2015 | ||
Morpho Komodo Litigation [Member] | |||
Loss Contingencies [Line Items] | |||
Lawsuit filing date | Jun. 19, 2015 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2010USD ($)$ / shares | Dec. 31, 2015USD ($)Plans$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares | Dec. 31, 2013USD ($)$ / sharesshares | Jun. 30, 2015shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | |||
Preferred stock, shares outstanding | 0 | 0 | |||
Common stock, shares authorized | 40,000,000 | 40,000,000 | |||
Common stock, shares outstanding | 14,389,000 | 14,358,000 | |||
Number of equity incentive plans | Plans | 2 | ||||
Shares outstanding under equity incentive plans | 1,257,000 | 980,000 | |||
Term of vesting schedule | 10 years | ||||
Vested share exercised | 3 months | ||||
Fair value assumption, risk-free interest rates | 1.94% | 1.56% | 1.81% | ||
Fair value assumption, expected dividend yields | 0.00% | 0.00% | 0.00% | ||
Aggregate intrinsic value closing stock price | $ / shares | $ 1.58 | ||||
Equity ownership percentage to benefit China employees | 38.00% | ||||
Price of warrant | $ / shares | $ 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 | May 5, 2013 | ||||
Fair value of options granted | $ / shares | $ 1.25 | $ 0.93 | $ 0.58 | ||
Unrecognized compensation expense related to non-vested stock options | $ | $ 407,000 | ||||
Recognition of unrecognized compensation expense, weighted-average period (in years) | 1 year 8 months 12 days | ||||
Fair value of options that vested | $ | $ 205,000 | $ 80,000 | $ 68,000 | ||
Stock issued during period, stock options exercised | 30,000 | 174,000 | 0 | ||
Cash received from exercise of stock options | $ | $ 27,000 | $ 137,000 | |||
Stock options exercise price | $ / shares | $ 0.89 | $ 0.79 | |||
Minimum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Period of option granted vest | 2 years | ||||
Fair value assumption, expected volatility | 93.00% | 93.00% | 93.00% | ||
Fair value assumption, expected term (years) | 4 years | 4 years | 4 years | ||
Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Period of option granted vest | 3 years | ||||
Fair value assumption, expected volatility | 102.00% | 102.00% | 102.00% | ||
Fair value assumption, expected term (years) | 6 years | 6 years | 6 years | ||
2006 Equity Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares outstanding under equity incentive plans | 942,000 | ||||
Common stock available for future issuance | 0 | ||||
Share-based compensation arrangement by share-based payment award, award vesting rights, percentage | 100.00% | ||||
2015 Equity Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares outstanding under equity incentive plans | 315,000 | ||||
Common stock available for future issuance | 899,000 | ||||
Common stock authorized for issuance there-under | 1,205,749 | ||||
2015 Equity Incentive Plan [Member] | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock available for future issuance | 958,668 | ||||
Hong Kong Subsidiary [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Value funded to affiliates | $ | $ 1,000,000 | ||||
Agreed additional funding to affiliates | $ | $ 1,000,000 | ||||
Estimated fair value of warrants | $ | $ 365,000 | ||||
Warrant performance period (years) | 3 years | ||||
Stock expenses on equity-based payments related to warrant | $ | $ 0 | $ 0 | $ 40,000 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Shares, Outstanding, Beginning balance | 980,000 | ||
Shares, Granted | 315,000 | ||
Shares, Exercised | (30,000) | (174,000) | 0 |
Shares, Forfeited | (8,000) | ||
Shares, Outstanding, Ending balance | 1,257,000 | 980,000 | |
Shares, Vested and expected to vest | 1,179,000 | ||
Shares, Exercisable, Ending balance | 807,000 | ||
Wtd. Avg. Exercise Price Outstanding, Beginning balance | $ 0.85 | ||
Wtd. Avg. Exercise Price, Granted | 1.61 | ||
Wtd. Avg. Exercise Price, Exercised | 0.89 | ||
Wtd. Avg. Exercise Price, Forfeited | 1.31 | ||
Wtd. Avg. Exercise Price, Outstanding, Ending balance | 1.04 | $ 0.85 | |
Wtd. Avg. Exercise Price, Vested and expected to vest | 1 | ||
Wtd. Avg. Exercise Price, Exercisable, Ending balance | $ 0.77 | ||
Wtd. Avg. Remaining Contractual Life, Outstanding | 4 years 6 months 4 days | ||
Wtd. Avg. Remaining Contractual Life, Vested and expected to vest | 4 years 4 months 24 days | ||
Wtd. Avg. Remaining Contractual Life, Exercisable | 3 years 4 months 17 days | ||
Aggregate Intrinsic Value, Outstanding | $ 708 | ||
Aggregate Intrinsic Value, Vested and expected to vest | 699 | ||
Aggregate Intrinsic Value, Exercisable | $ 656 |
Stockholders' Equity - Summar37
Stockholders' Equity - Summary of Non-Vested Options (Detail) shares in Thousands | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Shares, Non-vested, Beginning balance | shares | 412 |
Shares, Granted | shares | 315 |
Shares, Vested | shares | (269) |
Shares, Forfeited | shares | (8) |
Shares, Non-vested, Ending balance | shares | 450 |
Weighted-average grant-date fair value, Non-vested, Beginning balance | $ / shares | $ 0.82 |
Weighted-average grant-date fair value, Granted | $ / shares | 1.25 |
Weighted-average grant-date fair value, Vested | $ / shares | 0.76 |
Weighted-average grant-date fair value, Forfeited | $ / shares | 0.93 |
Weighted-average grant-date fair value, Non-vested, Ending balance | $ / shares | $ 1.16 |
Stockholders' Equity - Stock-Ba
Stockholders' Equity - Stock-Based Compensation Included in Unaudited Results of Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total share-based compensation expense before taxes | $ 218 | $ 86 | $ 109 |
Related deferred income tax benefits | 0 | 0 | 0 |
Share-based compensation expense | 218 | 86 | 109 |
Sales, General and Administrative [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total share-based compensation expense before taxes | 218 | 86 | 69 |
Research and Development [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total share-based compensation expense before taxes | 40 | ||
Non-employee Directors [Member] | Sales, General and Administrative [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total share-based compensation expense before taxes | 47 | 19 | 11 |
Officer Compensation [Member] | Sales, General and Administrative [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total share-based compensation expense before taxes | 97 | 39 | 40 |
Others [Member] | Sales, General and Administrative [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total share-based compensation expense before taxes | $ 74 | $ 28 | $ 18 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Income Tax Contingency [Line Items] | |
Year under examination | 2,004 |
Year under examination, one | 2,015 |
Federal statutory income tax rate | 34.00% |
Federal net operating loss carry forwards | $ 9,927,000 |
State net operating loss carry forwards | $ 13,490,000 |
Federal and State net operating loss carry forwards expire date | 2,024 |
Federal and State net operating loss carry forwards state and local expire date | 2,016 |
Percentage of cumulative change in ownership | 50.00% |
Period for which cumulative change in ownership continues to use net operating loss carryforward | 3 years |
Cumulative effect on retained earnings | $ 0 |
Unrecognized tax benefits | 0 |
Non-qualified Stock Options [Member] | |
Income Tax Contingency [Line Items] | |
Federal net operating loss carry forwards | 2,431,000 |
State net operating loss carry forwards | $ 1,067,000 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Provision (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current tax provision: | |||
Federal | $ (49) | ||
State | $ (3) | $ (3) | (2) |
Foreign | (11) | ||
Total | (3) | (14) | (51) |
Deferred tax benefit (provision): | |||
Federal | (31) | (437) | (205) |
State | 12 | (2) | (200) |
Total | (19) | (439) | (405) |
Change in valuation allowance | 19 | 439 | 405 |
Total provision for income taxes | $ (3) | $ (14) | $ (51) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal income tax at statutory rate | $ 422 | $ (94) | $ 185 |
State taxes, net of federal benefit | 6 | (5) | (23) |
Non-deductible expenses | (10) | (9) | (8) |
Foreign income tax rate differential | (443) | (265) | (283) |
Valuation allowance | 19 | 439 | 405 |
Foreign earnings | (182) | ||
Other | 3 | (80) | (145) |
Total provision for income taxes | $ (3) | $ (14) | $ (51) |
Income Taxes - Significant Comp
Income Taxes - Significant Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current deferred tax assets: | ||
Total | $ 504 | $ 478 |
Non-current deferred tax assets: | ||
Total | 3,357 | 3,402 |
Valuation allowance | (3,861) | (3,880) |
Net deferred tax assets | 0 | 0 |
Deferred Tax Current [Member] | ||
Current deferred tax assets: | ||
Allowance for bad debts | 34 | 33 |
Share-based payment expense | 220 | 145 |
Allowance for obsolete inventory | 98 | 119 |
Accrued compensation | 77 | 75 |
Contribution carryover | 2 | |
Other accruals | 73 | 106 |
Deferred Tax Non-current [Member] | ||
Non-current deferred tax assets: | ||
Depreciation | 11 | 5 |
Capital loss | 179 | 178 |
Net operating loss | 3,118 | 3,170 |
Credit carryover | $ 49 | $ 49 |
Segment and Geographic Inform43
Segment and Geographic Information - Additional Information (Detail) - Segment | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Number of business segment operated currently | 1 | ||
Geographic Concentration Risk [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Percentage of fixed assets into company's net assets | 1.00% | ||
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | Minimum [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Company's consolidated net revenue | 10.00% | 10.00% | 10.00% |
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | Central America [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Company's consolidated net revenue | 18.00% | 11.00% | 14.00% |
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | Peru [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Company's consolidated net revenue | 10.00% | 25.00% | 20.00% |
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | Mexico [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Company's consolidated net revenue | 28.00% | 17.00% | |
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | Puerto Rico [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Company's consolidated net revenue | 12.00% | 13.00% | |
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | Guatemala [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Company's consolidated net revenue | 10.00% | 15.00% |
Segment and Geographic Inform44
Segment and Geographic Information - Schedule of Sales by Geographical Area (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales by geographical area | $ 10,192 | $ 12,179 | $ 10,945 | $ 14,517 | $ 17,937 | $ 8,138 | $ 10,445 | $ 11,624 | $ 47,833 | $ 48,144 | $ 37,895 |
Central America [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales by geographical area | 8,223 | 15,887 | 17,296 | ||||||||
South America [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales by geographical area | 9,879 | 12,767 | 9,048 | ||||||||
Mexico [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales by geographical area | 13,339 | 8,063 | 2,908 | ||||||||
U.S.-based Latin American distributors [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales by geographical area | 11,853 | 7,240 | 6,422 | ||||||||
United States [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales by geographical area | 4,511 | 2,582 | 1,051 | ||||||||
Europe, Middle East and Africa ("EMEA") [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales by geographical area | 1,530 | 961 | |||||||||
Asia Pacific ("APAC") [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales by geographical area | $ 28 | $ 75 | $ 209 |
Quarterly Financial Informati45
Quarterly Financial Information - Quarterly Financial Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 10,192 | $ 12,179 | $ 10,945 | $ 14,517 | $ 17,937 | $ 8,138 | $ 10,445 | $ 11,624 | $ 47,833 | $ 48,144 | $ 37,895 |
Gross profit | 1,256 | 2,001 | 1,608 | 2,554 | 2,956 | 1,195 | 2,029 | 2,073 | 7,419 | 8,253 | 6,942 |
Net income (loss) | $ (959) | $ (138) | $ (678) | $ 532 | $ 730 | $ (633) | $ 109 | $ 55 | $ (1,243) | $ 261 | $ (597) |
Basic and diluted net income (loss) per share | $ (0.07) | $ (0.01) | $ (0.05) | $ 0.04 | $ 0.05 | $ (0.04) | $ 0.01 | $ 0 |
Valuation and Qualifying Acco46
Valuation and Qualifying Accounts - Valuation and Qualifying Accounts (Detail) - Allowance for Doubtful Accounts [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance, beginning of year | $ 95 | $ 373 | $ 339 |
Additions charged to operations | 0 | 34 | |
Deletions from Reserve | 0 | 278 | |
Balance, end of year | $ 95 | $ 95 | $ 373 |