Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 05, 2018 | Jun. 30, 2017 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
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 | 3,378,280 | ||
Entity Public Float | $ 4,783,955 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 612 | $ 2,200 |
Trade accounts receivable, net of allowance for doubtful accounts of $114 and $113 as of December 31, 2017 and 2016, respectively | 5,706 | 7,507 |
Other accounts receivable | 62 | |
Inventory | 3,879 | 4,071 |
Prepaid assets | 1,782 | 1,670 |
Total current assets | 11,979 | 15,510 |
Property and equipment, net | 350 | 132 |
Other assets | 28 | 384 |
Total assets | 12,357 | 16,026 |
Current liabilities: | ||
Accounts payable | 3,762 | 3,839 |
Accrued expenses | 1,490 | 1,597 |
Total current liabilities | 5,252 | 5,436 |
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: 3,378 and 2,878 shares issued and outstanding as of December 31, 2017 and 2016, respectively | 3 | 3 |
Additional paid-in capital | 34,243 | 33,158 |
Accumulated other comprehensive loss | (2,595) | (2,695) |
Accumulated deficit | (24,546) | (19,876) |
Total stockholders’ equity | 7,105 | 10,590 |
Total liabilities and stockholders’ equity | $ 12,357 | $ 16,026 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Statement Of Financial Position [Abstract] | ||
Trade accounts receivable, allowance for doubtful accounts | $ 114,000 | $ 113,000 |
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 | 3,378,000 | 2,878,000 |
Common stock, shares outstanding | 3,378,280 | 2,877,746 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | |||
Net sales | $ 23,386 | $ 39,140 | $ 47,833 |
Cost of sales | 21,397 | 34,547 | 40,414 |
Gross profit | 1,989 | 4,593 | 7,419 |
Operating expenses | 6,461 | 6,943 | 8,339 |
Operating loss | (4,472) | (2,350) | (920) |
Other expense: | |||
Interest expense, net | (182) | (244) | (320) |
Other expense, net | (13) | (334) | |
Loss before benefit (provision) for income taxes | (4,667) | (2,928) | (1,240) |
Benefit (provision) for income taxes | (3) | 93 | (3) |
Net loss | $ (4,670) | $ (2,835) | $ (1,243) |
Net loss per share (basic and diluted) | $ (1.52) | $ (0.99) | $ (0.43) |
Basic and diluted weighted-average number of common shares outstanding | 3,077 | 2,878 | 2,876 |
Comprehensive loss: | |||
Net loss | $ (4,670) | $ (2,835) | $ (1,243) |
Foreign currency translation adjustments | 100 | (1,103) | (866) |
Comprehensive loss | $ (4,570) | $ (3,938) | $ (2,109) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Other Comprehensive Loss [Member] | Accumulated Deficit [Member] |
Beginning Balance at Dec. 31, 2014 | $ 16,104 | $ 3 | $ 32,625 | $ (726) | $ (15,798) |
Beginning Balance, shares at Dec. 31, 2014 | 2,872,000 | ||||
Exercise of stock options | $ 27 | 27 | |||
Exercise of stock options, shares | 6,000 | 6,000 | |||
Stock-based compensation expense | $ 218 | 218 | |||
Foreign currency translation | (866) | (866) | |||
Net loss | (1,243) | (1,243) | |||
Ending Balance at Dec. 31, 2015 | $ 14,240 | $ 3 | 32,870 | (1,592) | (17,041) |
Ending Balance, shares at Dec. 31, 2015 | 2,878,000 | ||||
Exercise of stock options, shares | 0 | ||||
Stock-based compensation expense | $ 288 | 288 | |||
Foreign currency translation | (1,103) | (1,103) | |||
Net loss | (2,835) | (2,835) | |||
Ending Balance at Dec. 31, 2016 | $ 10,590 | $ 3 | 33,158 | (2,695) | (19,876) |
Ending Balance, shares at Dec. 31, 2016 | 2,878,000 | ||||
Exercise of stock options, shares | 0 | ||||
Sale of common stock | $ 948 | 948 | |||
Sale of common stock, shares | 500,000 | ||||
Stock-based compensation expense | 137 | 137 | |||
Foreign currency translation | 100 | 100 | |||
Net loss | (4,670) | (4,670) | |||
Ending Balance at Dec. 31, 2017 | $ 7,105 | $ 3 | $ 34,243 | $ (2,595) | $ (24,546) |
Ending Balance, shares at Dec. 31, 2017 | 3,378,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | |||
Net loss | $ (4,670) | $ (2,835) | $ (1,243) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Depreciation | 162 | 86 | 92 |
Loss on disposal of fixed assets | 2 | ||
Recovery of bad debts | 1 | 18 | |
Provision for obsolete inventory | 242 | (192) | (63) |
Stock-based compensation | 137 | 288 | 218 |
(Increase) decrease in: | |||
Trade accounts receivable | 1,801 | 1,766 | 6,353 |
Other accounts receivable | 62 | 34 | (26) |
Inventory | (50) | 2,758 | (694) |
Prepaids | (113) | 355 | 753 |
Other assets | 16 | (255) | (98) |
Increase (decrease) in: | |||
Accounts payable | (77) | (559) | 27 |
Accrued expenses | (107) | (746) | (461) |
Net cash provided by (used in) operating activities | (2,594) | 718 | 4,858 |
Cash flows from investing activities: | |||
Purchase of property and equipment | (42) | (62) | (111) |
Net cash used in investing activities | (42) | (62) | (111) |
Cash flows from financing activities: | |||
Borrowings on line of credit | 1,848 | 4,460 | |
Repayments on line of credit | (1,848) | (7,185) | |
Sale of common stock, net of offering expenses | 948 | ||
Cash received from exercise of stock options | 27 | ||
Net cash provided by (used in) financing activities | 948 | (2,698) | |
Effect of exchange rate changes on cash | 100 | (1,103) | (866) |
Net increase (decrease) in cash and cash equivalents | (1,588) | (447) | 1,183 |
Cash and cash equivalents, beginning of year | 2,200 | 2,647 | 1,464 |
Cash and cash equivalents, end of year | 612 | 2,200 | 2,647 |
Cash paid for interest | 207 | $ 229 | $ 350 |
Cash paid for income taxes | 5 | ||
Non-cash investing activities: | |||
Transfer of other assets to property and equipment | $ 340 |
Organization and Line of Busine
Organization and Line of Business | 12 Months Ended |
Dec. 31, 2017 | |
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., 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 2—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, 2017 and 2016, the Company maintained deposits totaling $150,000 and $1.9 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 $114,000 and $113,000 at December 31, 2017 and 2016, respectively. Inventory Inventory is stated at the lower of cost (first-in, first-out) or net realizable value 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, 2017 and 2016, the inventory was net of write-downs of $325,000 and $84,000, 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, 2017 and 2016, the prepaid inventory balances included in prepaid assets were $795,000 and $1,112,000, 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, 2016, 2015 and 2014. 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, 2017, 2016 and 2015 was $96,000, $252,000 and $992,000, 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 2017 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 and warrants. 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 and warrants 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, 2017, 2016 and 2015, the number of such shares excluded was 671,000, 103,000 and 4,000 respectively. 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, 2016 and 2015 of 562,000 and 1,237,000, respectively, have also been excluded from the computation of net loss per share. No such shares were excluded for the year ended December 31, 2017. 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, 2017, the Company’s three largest suppliers accounted for 41%, 31% and 12%, respectively, of total cost of sales. During the year ended December 31, 2016, the Company’s three largest suppliers accounted for 42%, 19% and 17%, respectively, of total cost of sales. 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. 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. 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 2017, three customers represented 10% or more of the Company’s total net sales. Those top three customers accounted for 21%, 20% and 14%, respectively, of total net sales and represented 33%, 29%, and 3%, respectively, of accounts receivable at December 31, 2017. In 2016, four customers represented 10% or more of the Company’s total net sales. Those top four customers accounted for 20%, 19%, 14% and 14%, respectively, of total net sales and represented 32%, 0%, 2% and 30%, respectively, of accounts receivable at December 31, 2016. In 2015, three customers represented 10% or more of the Company’s total net sales. Those top three customers accounted for 18%, 15% and 10%, respectively, of total net sales and represented 35%, 16% and 16%, respectively, of accounts receivable at December 31, 2015. For its verykool ® Recently Adopted: In August 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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 was effective for the fiscal years ending after December 15, 2016, and for annual periods and interim periods thereafter. As discussed in Note 3 below, the Company adopted this guidance effective January 1, 2017, which adoption did not have an impact on the Company’s consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-05, “Derivatives and Hedging (Topic 815),” which clarifies that a change in the counterparty to a derivative instrument that has been designed as a hedging instrument under Topic 815 does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. ASU 2016-05 was effective for annual and interim reporting periods within those years beginning after December 15, 2016, with application either on a prospective basis or through a modified retrospective basis. The Company adopted this guidance effective January 1, 2017, which adoption did not have an impact on the Company’s consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, “Compensation – Stock Compensation (Topic 718),” which simplifies several aspects of the accounting for share-based payments, including immediate recognition of all excess tax benefits and deficiencies in the income statement, changing the threshold to qualify for equity classification up to the employees’ maximum statutory tax rates, allowing an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures as they occur, and clarifying the classification on the statement of cash flows for the excess tax benefit and employee taxes paid when an employer withholds shares for tax-withholding purposes. ASU 2016-09 was effective for annual and interim reporting periods within those years beginning after December 15, 2016. This update should be applied through the following methods: 1) a modified retrospective transition approach as related to the timing of when tax benefits are recognized, minimum statutory withholding requirements, forfeitures, and intrinsic value, 2) retrospectively as related to the presentation of employee taxes paid on the statement of cash flows when an employer withholds hares to meet the minimum statutory withholding requirement, 3) prospectively as related to the recognition of excess tax benefits and tax deficiencies in the income statement and the practical expedient for estimating expected term and 4) either prospective transition method or a retrospective transition method as related to the presentation of excess tax benefits on the statement of cash flows. The Company adopted this guidance effective January 1, 2017, 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),” and requires entities to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additionally, this guidance requires that entities disclose the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. In March 2016, the FASB issued ASU 2016-08, “Revenue from Contracts with Customers - Principal versus Agent Considerations (Reporting revenue gross versus net),” which clarifies gross versus net revenue reporting when another party is involved in the transaction. In April 2016, the FASB issued ASU 2016-10, “Revenue from Contracts with Customers - Identifying Performance Obligations and Licensing,” which amends the revenue guidance on identifying performance obligations and accounting for licenses of intellectual property. In May 2016, the FASB issued ASU 2016-12, “Revenue from Contracts with Customers - Narrow-Scope Improvements and Practical Expedients,” which provides narrow-scope improvements to the guidance on collectability, non-cash consideration, and completed contracts at transition. In December 2016, the FASB issued ASU 2016-20, “Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers,” which amended the guidance on performance obligation disclosures and makes technical corrections and improvements to the new revenue standard. The standard is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, and permits early adoption on a limited basis. The update permits the use of either the retrospective or cumulative effect transition method. The Company believes the preponderance of its contracts with customers are standard ship and bill arrangements where revenue is recognized at the time of shipment. The Company does not believe this ASU will have a significant impact on the Company’s consolidated financial position, results of operations and cash flows, and intends to adopt the standard using the modified retrospective approach in its fiscal year beginning January 1, 2018. 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. In May 2017, the FASB issued ASU No. 2017-09 2017-09 Other Accounting Standards Updates not effective until after December 31, 2017 are not expected to have a material effect on the Company’s financial position or results of operations. |
Going Concern Considerations
Going Concern Considerations | 12 Months Ended |
Dec. 31, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Going Concern Considerations | NOTE 3—GOING CONCERN CONSIDERATIONS Effective January 1, 2017, the Company adopted the guidance issued by the FASB under ASU No. 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 update provides U.S. GAAP guidance on management’s responsibility in evaluating whether there is substantial doubt about a company’s ability to continue as a going concern and about related footnote disclosures. Under this standard, the Company is required to evaluate whether there is substantial doubt about its ability to continue as a going concern each reporting period, including interim periods. In evaluating the Company’s ability to continue as a going concern, management considered the conditions and events that could raise substantial doubt about the Company’s ability to continue as a going concern for 12 months following March 8, 2018, the date the Company’s financial statements were issued. Management considered the Company’s current financial condition and liquidity sources, including current funds and available working capital, forecasted future cash flows and the Company’s conditional and unconditional obligations due before March 8, 2019. Although the Company has no outstanding debt and management believes the Company could meet its future obligations, continued losses and lack of working capital would require it to substantially constrain its business. As a consequence, management has substantial doubt that the Company could remain independent and continue as a going concern for the required period of time. This substantial doubt is alleviated, however, by the impending merger with Cooltech that was approved by the Company’s stockholders on March 7, 2018, the closing of which is imminent. The completion of the merger will result in the closing of the PIPE transaction for the sale of 875,000 shares of the Company’s common stock and a release to the Company of $1.75 million of cash currently held in escrow pending the closing of the merger. Cooltech’s financial projections indicate that it expects to generate significant free cash flow over the next 24 months and raise additional equity capital to fund its post-merger growth. Based on the above factors, management determined that the post-merger Company will be able to continue as a going concern within one year after the date the financial statements are issued. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 2016 Machinery and Equipment $ 698 $ 384 Furniture and Fixtures 79 164 777 548 Less Accumulated Depreciation 427 416 Total $ 350 $ 132 Depreciation expense was $162,000, $86,000 and $92,000 for the years ended December 31, 2017, 2016 and 2015, respectively. |
Foreign Exchange Hedging Facili
Foreign Exchange Hedging Facility | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Foreign Exchange Hedging Facility | NOTE 5—FOREIGN EXCHANGE HEDGING FACILITY On January 14, 2016, the Company entered into an Agreement for Purchase and Sale of Foreign Securities (the “FS Agreement”) with Silicon Valley Bank (“SVB”). Under the FS Agreement, the Company and SVB could enter into foreign currency spot contracts, forward contracts, forward window contracts and options to manage the Company’s foreign currency risk. On January 20, 2016, the Company entered into forward contracts designated as cash flow hedges to protect against the foreign currency exchange rate risk of the Mexican Peso inherent in its forecasted net sales and cash collections from customers in Mexico. The hedges matured on a monthly basis through June 30, 2016. Changes in the fair value of the hedges were initially recorded in accumulated other comprehensive loss as a separate component of stockholders’ equity in the Consolidated Balance Sheet and subsequently reclassified into earnings as other income (expense) on the Consolidated Statement of Operations and Comprehensive Loss in the period in which the hedge matured. During the year ended December 31, 2016, the Company recorded $325,000 of losses on forward contracts that matured during the year. The FS Agreement was terminated in September 2017, and no such contracts were outstanding at December 31, 2017. |
Line of Credit
Line of Credit | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Line of Credit | NOTE 6—LINE OF CREDIT The Company was previously party to a Loan and Security Agreement and an attendant Intellectual Property Security Agreement (collectively the “Agreement”) with Silicon Valley Bank (“SVB” or the “Bank”) which was secured by substantially all of the Company’s assets. The Agreement contained representations and warranties, affirmative and restrictive covenants, and events of default which are customary for credit facilities of this type. The Agreement originally provided the Company with the ability to borrow against both its domestic and foreign eligible accounts receivable based on specified advance rates. It was then augmented in October 2016 to provide for a $2 million sublimit that enabled the Company to borrow against its Mexican peso deposits held at the Bank at a 70% advance rate with such borrowings bearing interest at the prime rate. In March 2017, due to the Company’s continuing losses, the Agreement was amended to eliminate the Company’s ability to borrow against its accounts receivable and all related financial covenants were removed. On September 27, 2017, the credit facility matured and was not renewed by the Company. The Bank released its security interest in the Company’s assets, which are now unencumbered. |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2017 | |
Payables And Accruals [Abstract] | |
Accrued Expenses | NOTE 7—ACCRUED EXPENSES As of December 31, 2017 and 2016, accrued expenses consisted of the following (in thousands): December 31, 2017 2016 Accrued product costs $ 378 $ 400 Accrued coop advertising 24 44 Accrued vacation pay 177 179 Income taxes payable 1 — Customer deposits and overpayments 453 568 Other accruals 457 406 Total $ 1,490 $ 1,597 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 8—COMMITMENTS AND CONTINGENCIES Leases The Company leases its corporate and administrative offices, quality control office and certain equipment under operating lease agreements which expire through June 2020. Certain of the agreements contain renewal options. Future minimum payments under these operating lease agreements at December 31, 2017 were $507,000. Rent expense was $398,000, $417,000 and $393,000 for the years ended December 31, 2017, 2016 and 2015, respectively. Litigation The Company has historically and may become involved in certain legal proceedings and claims which arise in the normal course of business. 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 2016 that expires in April 2020. The employment agreement provides for an annual salary of $365,000 and a performance-based bonus at the discretion of the Board of Directors. 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 2016 that expires in April 2018. The employment agreement provides for an annual salary of $205,000 and a performance-based bonus at the discretion of the Board of Directors. 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, 2017 | |
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, 2017 and 2016, the Company did not have any preferred shares outstanding. Common Stock and Warrants The Company has authorized the issuance of 40,000,000 shares of common stock. As of December 31, 2017 and 2016, a total of 3,378,280 and 2,877,746 shares, respectively, were outstanding. On August 2, 2017, the Company sold 500,000 shares of its common stock at $2.00 per share in a public offering, and concurrently issued privately placed warrants to purchase 500,000 shares of common stock at an exercise price of $2.42 per share to investors related to Cooltech. The closing stock price of the common stock on that date was $2.20 per share. Net proceeds from the offering after expenses amounted to $948,000. The warrants, which have a cashless exercise feature, have a 3 year life and may not be exercised until 6 months from the date of issuance. The fair value of the warrants was estimated on the date of issuance at $364,000 using the Black-Scholes pricing model and assuming a risk-free interest rate of 1.52% based on the U.S. Treasury rate then in effect, a dividend yield of 0%, a 3-year life and an expected volatility of 105% based on the Company’s historical stock price fluctuations for a 3-year period. On August 3, 2017, the Company entered into a stock purchase agreement for the private placement of 875,000 shares of common stock at a purchase price of $2.00 per share and warrants to purchase 875,000 shares of common stock at $2.42 per share with investors related to Cooltech. The aggregate purchase price of $1,750,000 was placed into escrow and the closing of the offering, including the issuance of the shares and warrants, is contingent upon approval of the transaction by the Company’s stockholders and the closing of the Merger. On October 10, 2017, the Company effected a 1-for-5 reverse stock split in order to regain compliance with the minimum bid price requirement of the NASDAQ Stock Market. On October 25, 2017, after 10 consecutive days of trading, the Company received notification from NASDAQ that it had regained compliance. All references in this Annual Report on Form 10-K to shares and per share amounts have been restated to give effect to this reverse split. 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, 2017, options to purchase 124,000 and 47,000 shares were outstanding under the 2006 Plan and the 2015 Plan, respectively, and a total of 260,000 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 241,150 shares of the Company’s common stock authorized for issuance thereunder. 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 191,734 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: risk-free interest rate of 1.94% 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. The expected volatility used ranged from 93.41% to 96.65% based on the Company’s historical stock price fluctuations for a period matching the expected life of the options. No stock options were granted during 2016 or 2017. A summary of stock option activity for the year ended December 31, 2017 is as follows (shares and aggregate intrinsic value in thousands): Shares Wtd. Avg. Exercise Price Wtd. Avg. Remaining Contractual Life Aggregate Intrinsic Value Outstanding at December 31, 2016 215 $ 5.21 Granted — $ — Expired (28 ) $ 3.40 Forfeited (16 ) $ 5.87 Outstanding at December 31, 2017 171 $ 5.44 3.26 years $ — Vested and expected to vest 171 $ 5.44 3.26 years $ — Exercisable at December 31, 2017 171 $ 5.44 3.26 years $ — There was no aggregate intrinsic value in the outstanding stock options at December 31, 2017 because the closing price of our stock at that date was $1.44 per share, which price was below the exercise price of all outstanding options. A summary of the status of the Company’s non-vested options at December 31, 2017, 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, 2016 27 $ 5.97 Granted — $ — Vested (25 ) $ 5.97 Forfeited (2 ) $ 5.97 Non-vested at December 31, 2017 — $ — No options were granted or exercised during 2017 or 2016. The weighted-average per share grant-date fair values of options granted during 2015 was $1.25. During the year ended December 31, 2015, a total of 6,000 option shares were exercised and the Company received $27,000 in cash, or an average of $4.45 per share, from these exercises. There was no unrecognized stock-based compensation expense for future periods as of December 31, 2017, as all outstanding options were fully-vested on that date. The total fair value of options that vested during 2017, 2016 and 2015 was $147,000, $302,000 and $205,000, respectively. The following table summarizes share-based compensation expense for the years ended December 31 (in thousands): 2017 2016 2015 Selling, general and administrative: Non-employee directors $ 33 $ 62 $ 47 Officers 70 130 97 Others 34 96 74 Total SG&A 137 288 218 Related deferred income tax benefits — — — Share-based compensation expense $ 137 $ 288 $ 218 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
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 2017 remain open to examination by the taxing authorities due to the carryforward of unutilized net operating losses. As of December 31, 2017, 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): 2017 2016 2015 Current tax benefit (provision): Federal $ — $ — $ — State (3 ) (2 ) (3 ) Foreign — 95 — Total (3 ) 93 (3 ) Deferred tax benefit (provision): Federal (1,090 ) 838 (31 ) State 72 52 12 Total (1,018 ) 890 (19 ) Change in valuation allowance 1,018 (890 ) 19 Total benefit (provision) for income taxes $ (3 ) $ 93 $ (3 ) 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): 2017 2016 2015 U.S. federal income tax at statutory rate $ 1,587 $ 996 $ 422 State taxes, net of federal benefit 46 32 6 Non-deductible expenses (441 ) (8 ) (10 ) Foreign income tax rate differential (103 ) (9 ) (443 ) Valuation allowance 1,018 (890 ) 19 Tax Reform (2,067 ) — — Other (43 ) (28 ) 3 Total benefit (provision) for income taxes $ (3 ) $ 93 $ (3 ) 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, 2017 2016 Current deferred tax assets: Allowance for bad debts $ 22 $ 34 Share-based payment expense 162 321 Allowance for obsolete inventory 75 30 Accrued compensation 41 63 Other accruals 22 66 Total 322 514 Non-current deferred tax assets: Depreciation — 16 Capital loss — 179 Net operating loss 4,116 3,991 Credit carryover 51 51 Total 4,167 4,237 Valuation allowance (4,489 ) (4,751 ) Net deferred tax assets $ — $ — At December 31, 2017, the Company had federal and state net operating loss carryforwards of approximately $15,590,000 and $15,822,000, respectively. The federal loss carryforwards do not expire. The state loss carryforwards expire in 2037. Pursuant to Internal Revenue Code Section 382, use of the Company’s net operating loss carryforwards 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, 2016, 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, 2017 | |
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, 2017, 2016 and 2015 (in thousands): 2017 2016 2015 Central America $ 3,028 $ 10,883 $ 8,223 South America 2,906 4,849 9,879 Mexico 8,126 15,128 13,339 U.S.-based distributors selling to Latin America 8,782 6,992 11,853 United States — 1,276 4,511 South Africa 544 — — Asia Pacific — 12 28 Total $ 23,386 $ 39,140 $ 47,833 During the year ended December 31, 2017, sales to customers in Mexico represented 35% of the Company’s consolidated net revenue. Also in 2017, sales to two U.S.-based distributors who sell into the open market in Latin America represented 20% and 12%, respectively, of net revenue, and sales to customers in Central America and South America represented 13% and 12%, respectively of net revenue. During the year ended December 31, 2016, sales to customers in Mexico and Guatemala represented 39% and 19%, respectively, of the Company’s consolidated net revenue. Also in 2016, sales to a U.S.-based distributor who sells into the open market in Latin America represented 14% of net revenue. In 2015, sales to customers in Mexico, Peru, Guatemala and the same U.S.-based distributor represented 28%, 10%, 10% and 18%, respectively, of net revenue. 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 5% 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. |
Merger and Subsequent Event
Merger and Subsequent Event | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Merger and Subsequent Event | NOTE 12—MERGER AND SUBSEQUENT EVENT On July 25, 2017, the Company entered into an Agreement and Plan of Merger (as amended “Merger Agreement”) by and among the Company, Cooltech Holding Corp. (“Cooltech”), and the Company’s wholly-owned subsidiary, InfoSonics Acquisition Sub, Inc. (“Merger Sub”), pursuant to which Cooltech will merge with and into the Merger Sub (the “Merger”), with Cooltech surviving as a wholly-owned subsidiary of InfoSonics. The Merger Agreement provides that the Company will issue an aggregate of 9,375,000 shares of its common stock in exchange for all of the outstanding capital stock of Cooltech. The Merger and the transactions contemplated thereby were approved by the Company’s stockholders at a Special Meeting held on March 7, 2017. Closing, which is subject to a number of customary conditions, is imminent. On January 19, 2018, the Company sold $1 million of 0% convertible notes and warrants to purchase 571,427 shares of its common stock at $1.83 per share in a private placement to investors related to Cooltech. The warrants, which have a cashless exercise feature, have a 3 year life and may not be exercised until 6 months from the date of issuance. The funds from this sale are intended to be used by the Company to pay merger expenses and for other general corporate purposes. |
Quarterly Financial Information
Quarterly Financial Information | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | NOTE 13—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 Quarter Second Quarter Third Quarter Fourth Quarter Year Ended December 31, 2017 Net sales $ 6,221 $ 5,297 $ 6,008 $ 5,860 Gross profit 322 605 606 456 Net loss (1,104 ) (812 ) (1,761 ) (993 ) Basic and diluted net loss per share (0.38 ) (0.28 ) (0.56 ) (0.29 ) Year Ended December 31, 2016 Net sales $ 9,410 $ 12,126 $ 8,989 $ 8,615 Gross profit 1,178 1,157 884 1,374 Net income (loss) (903 ) (1,035 ) (945 ) 48 Basic and diluted net income (loss) per share (0.31 ) (0.36 ) (0.33 ) 0.02 |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2017 | |
Valuation And Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | SUPPLEMENTAL INFORMATION Valuation and Qualifying Accounts—Schedule II (Amounts in thousands) Balance, beginning of year Additions charged to operations Deletions from Reserve Balance, end of year Allowance for doubtful accounts: Year ended December 31, 2017 $ 113 $ 1 $ — $ 114 Year ended December 31, 2016 95 18 — 113 Year ended December 31, 2015 95 — — 95 |
Summary of Significant Accoun21
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [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, 2017 and 2016, the Company maintained deposits totaling $150,000 and $1.9 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 $114,000 and $113,000 at December 31, 2017 and 2016, respectively. |
Inventory | Inventory Inventory is stated at the lower of cost (first-in, first-out) or net realizable value 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, 2017 and 2016, the inventory was net of write-downs of $325,000 and $84,000, 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, 2017 and 2016, the prepaid inventory balances included in prepaid assets were $795,000 and $1,112,000, 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, 2016, 2015 and 2014. |
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, 2017, 2016 and 2015 was $96,000, $252,000 and $992,000, 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 2017 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 and warrants. 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 and warrants 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, 2017, 2016 and 2015, the number of such shares excluded was 671,000, 103,000 and 4,000 respectively. 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, 2016 and 2015 of 562,000 and 1,237,000, respectively, have also been excluded from the computation of net loss per share. No such shares were excluded for the year ended December 31, 2017. |
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, 2017, the Company’s three largest suppliers accounted for 41%, 31% and 12%, respectively, of total cost of sales. During the year ended December 31, 2016, the Company’s three largest suppliers accounted for 42%, 19% and 17%, respectively, of total cost of sales. 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. |
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. 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 2017, three customers represented 10% or more of the Company’s total net sales. Those top three customers accounted for 21%, 20% and 14%, respectively, of total net sales and represented 33%, 29%, and 3%, respectively, of accounts receivable at December 31, 2017. In 2016, four customers represented 10% or more of the Company’s total net sales. Those top four customers accounted for 20%, 19%, 14% and 14%, respectively, of total net sales and represented 32%, 0%, 2% and 30%, respectively, of accounts receivable at December 31, 2016. In 2015, three customers represented 10% or more of the Company’s total net sales. Those top three customers accounted for 18%, 15% and 10%, respectively, of total net sales and represented 35%, 16% and 16%, respectively, of accounts receivable at December 31, 2015. For its verykool ® |
Recently Adopted | Recently Adopted: In August 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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 was effective for the fiscal years ending after December 15, 2016, and for annual periods and interim periods thereafter. As discussed in Note 3 below, the Company adopted this guidance effective January 1, 2017, which adoption did not have an impact on the Company’s consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-05, “Derivatives and Hedging (Topic 815),” which clarifies that a change in the counterparty to a derivative instrument that has been designed as a hedging instrument under Topic 815 does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. ASU 2016-05 was effective for annual and interim reporting periods within those years beginning after December 15, 2016, with application either on a prospective basis or through a modified retrospective basis. The Company adopted this guidance effective January 1, 2017, which adoption did not have an impact on the Company’s consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, “Compensation – Stock Compensation (Topic 718),” which simplifies several aspects of the accounting for share-based payments, including immediate recognition of all excess tax benefits and deficiencies in the income statement, changing the threshold to qualify for equity classification up to the employees’ maximum statutory tax rates, allowing an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures as they occur, and clarifying the classification on the statement of cash flows for the excess tax benefit and employee taxes paid when an employer withholds shares for tax-withholding purposes. ASU 2016-09 was effective for annual and interim reporting periods within those years beginning after December 15, 2016. This update should be applied through the following methods: 1) a modified retrospective transition approach as related to the timing of when tax benefits are recognized, minimum statutory withholding requirements, forfeitures, and intrinsic value, 2) retrospectively as related to the presentation of employee taxes paid on the statement of cash flows when an employer withholds hares to meet the minimum statutory withholding requirement, 3) prospectively as related to the recognition of excess tax benefits and tax deficiencies in the income statement and the practical expedient for estimating expected term and 4) either prospective transition method or a retrospective transition method as related to the presentation of excess tax benefits on the statement of cash flows. The Company adopted this guidance effective January 1, 2017, which adoption did not have an impact on the Company’s consolidated financial statements. |
Issued (Not adopted yet) | 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),” and requires entities to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additionally, this guidance requires that entities disclose the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. In March 2016, the FASB issued ASU 2016-08, “Revenue from Contracts with Customers - Principal versus Agent Considerations (Reporting revenue gross versus net),” which clarifies gross versus net revenue reporting when another party is involved in the transaction. In April 2016, the FASB issued ASU 2016-10, “Revenue from Contracts with Customers - Identifying Performance Obligations and Licensing,” which amends the revenue guidance on identifying performance obligations and accounting for licenses of intellectual property. In May 2016, the FASB issued ASU 2016-12, “Revenue from Contracts with Customers - Narrow-Scope Improvements and Practical Expedients,” which provides narrow-scope improvements to the guidance on collectability, non-cash consideration, and completed contracts at transition. In December 2016, the FASB issued ASU 2016-20, “Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers,” which amended the guidance on performance obligation disclosures and makes technical corrections and improvements to the new revenue standard. The standard is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, and permits early adoption on a limited basis. The update permits the use of either the retrospective or cumulative effect transition method. The Company believes the preponderance of its contracts with customers are standard ship and bill arrangements where revenue is recognized at the time of shipment. The Company does not believe this ASU will have a significant impact on the Company’s consolidated financial position, results of operations and cash flows, and intends to adopt the standard using the modified retrospective approach in its fiscal year beginning January 1, 2018. 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. In May 2017, the FASB issued ASU No. 2017-09 2017-09 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 2016 Machinery and Equipment $ 698 $ 384 Furniture and Fixtures 79 164 777 548 Less Accumulated Depreciation 427 416 Total $ 350 $ 132 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Expenses | As of December 31, 2017 and 2016, accrued expenses consisted of the following (in thousands): December 31, 2017 2016 Accrued product costs $ 378 $ 400 Accrued coop advertising 24 44 Accrued vacation pay 177 179 Income taxes payable 1 — Customer deposits and overpayments 453 568 Other accruals 457 406 Total $ 1,490 $ 1,597 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Summary of Stock Option Activity | A summary of stock option activity for the year ended December 31, 2017 is as follows (shares and aggregate intrinsic value in thousands): Shares Wtd. Avg. Exercise Price Wtd. Avg. Remaining Contractual Life Aggregate Intrinsic Value Outstanding at December 31, 2016 215 $ 5.21 Granted — $ — Expired (28 ) $ 3.40 Forfeited (16 ) $ 5.87 Outstanding at December 31, 2017 171 $ 5.44 3.26 years $ — Vested and expected to vest 171 $ 5.44 3.26 years $ — Exercisable at December 31, 2017 171 $ 5.44 3.26 years $ — |
Summary of Non-Vested Options | A summary of the status of the Company’s non-vested options at December 31, 2017, 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, 2016 27 $ 5.97 Granted — $ — Vested (25 ) $ 5.97 Forfeited (2 ) $ 5.97 Non-vested at December 31, 2017 — $ — |
Summary of Share-Based Compensation Expense | The following table summarizes share-based compensation expense for the years ended December 31 (in thousands): 2017 2016 2015 Selling, general and administrative: Non-employee directors $ 33 $ 62 $ 47 Officers 70 130 97 Others 34 96 74 Total SG&A 137 288 218 Related deferred income tax benefits — — — Share-based compensation expense $ 137 $ 288 $ 218 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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): 2017 2016 2015 Current tax benefit (provision): Federal $ — $ — $ — State (3 ) (2 ) (3 ) Foreign — 95 — Total (3 ) 93 (3 ) Deferred tax benefit (provision): Federal (1,090 ) 838 (31 ) State 72 52 12 Total (1,018 ) 890 (19 ) Change in valuation allowance 1,018 (890 ) 19 Total benefit (provision) for income taxes $ (3 ) $ 93 $ (3 ) |
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): 2017 2016 2015 U.S. federal income tax at statutory rate $ 1,587 $ 996 $ 422 State taxes, net of federal benefit 46 32 6 Non-deductible expenses (441 ) (8 ) (10 ) Foreign income tax rate differential (103 ) (9 ) (443 ) Valuation allowance 1,018 (890 ) 19 Tax Reform (2,067 ) — — Other (43 ) (28 ) 3 Total benefit (provision) for income taxes $ (3 ) $ 93 $ (3 ) |
Significant Components of Deferred Tax Assets and Liabilities | Significant components of deferred tax assets and liabilities are shown below (in thousands): December 31, 2017 2016 Current deferred tax assets: Allowance for bad debts $ 22 $ 34 Share-based payment expense 162 321 Allowance for obsolete inventory 75 30 Accrued compensation 41 63 Other accruals 22 66 Total 322 514 Non-current deferred tax assets: Depreciation — 16 Capital loss — 179 Net operating loss 4,116 3,991 Credit carryover 51 51 Total 4,167 4,237 Valuation allowance (4,489 ) (4,751 ) Net deferred tax assets $ — $ — |
Segment and Geographic Inform26
Segment and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017, 2016 and 2015 (in thousands): 2017 2016 2015 Central America $ 3,028 $ 10,883 $ 8,223 South America 2,906 4,849 9,879 Mexico 8,126 15,128 13,339 U.S.-based distributors selling to Latin America 8,782 6,992 11,853 United States — 1,276 4,511 South Africa 544 — — Asia Pacific — 12 28 Total $ 23,386 $ 39,140 $ 47,833 |
Quarterly Financial Informati27
Quarterly Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | These operating results are not necessarily indicative of results for any future period. First Quarter Second Quarter Third Quarter Fourth Quarter Year Ended December 31, 2017 Net sales $ 6,221 $ 5,297 $ 6,008 $ 5,860 Gross profit 322 605 606 456 Net loss (1,104 ) (812 ) (1,761 ) (993 ) Basic and diluted net loss per share (0.38 ) (0.28 ) (0.56 ) (0.29 ) Year Ended December 31, 2016 Net sales $ 9,410 $ 12,126 $ 8,989 $ 8,615 Gross profit 1,178 1,157 884 1,374 Net income (loss) (903 ) (1,035 ) (945 ) 48 Basic and diluted net income (loss) per share (0.31 ) (0.36 ) (0.33 ) 0.02 |
Summary of Significant Accoun28
Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | |||
Dec. 31, 2017USD ($)CustomerManufacturershares | Dec. 31, 2016USD ($)Customershares | Dec. 31, 2015USD ($)Customershares | Dec. 31, 2014USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | ||||
Maturity of cash equivalents | 90 days | |||
Deposits with certain financial institutions | $ 150,000 | $ 1,900,000 | ||
Accounts receivable, allowance for doubtful accounts | 114,000 | 113,000 | ||
Inventory net of write-downs | 325,000 | 84,000 | ||
Prepaid inventory balances included in prepaid assets | 795,000 | 1,112,000 | ||
Impairment of long-lived assets | 0 | $ 0 | $ 0 | |
Advertising expense | $ 96,000 | $ 252,000 | $ 992,000 | |
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 2017 tax years | |||
Anti-dilutive securities excluded from computation of earnings per share | shares | 671,000 | 103,000 | 4,000 | |
Number of manufactures | Manufacturer | 10 | |||
Supplier Concentration Risk [Member] | Cost of Goods, Total [Member] | Major Supplier One [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration Risk, Percentage | 41.00% | 42.00% | 16.00% | |
Supplier Concentration Risk [Member] | Cost of Goods, Total [Member] | Major Supplier Two [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration Risk, Percentage | 31.00% | 19.00% | 15.00% | |
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% | 17.00% | 12.00% | |
Supplier Concentration Risk [Member] | Cost of Goods, Product Line [Member] | Major Supplier One [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration Risk, Percentage | 41.00% | |||
Supplier Concentration Risk [Member] | Cost of Goods, Product Line [Member] | Major Supplier Two [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration Risk, Percentage | 31.00% | |||
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% | |||
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 | 4 | 3 | |
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | Major Customer One [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration Risk, Percentage | 21.00% | 20.00% | 18.00% | |
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | Major Customer Two [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration Risk, Percentage | 20.00% | 19.00% | 15.00% | |
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | Major Customer Three [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration Risk, Percentage | 14.00% | 14.00% | 10.00% | |
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | Major Customer Four [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration Risk, Percentage | 14.00% | |||
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Major Customer One [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration Risk, Percentage | 33.00% | 32.00% | 35.00% | |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Major Customer Two [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration Risk, Percentage | 29.00% | 0.00% | 16.00% | |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Major Customer Three [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration Risk, Percentage | 3.00% | 2.00% | 16.00% | |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Major Customer Four [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration Risk, Percentage | 30.00% | |||
In The Money Option [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Anti-dilutive securities excluded from computation of earnings per share | shares | 0 | 562,000 | 1,237,000 | |
Earliest Tax Year [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Open tax year | 2,004 | |||
Latest Tax Year [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Open tax year | 2,017 | |||
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 |
Going Concern Considerations -
Going Concern Considerations - Additional Information (Detail) - Cooltech Holding Corp. ("Cooltech") [Member] - USD ($) $ in Thousands | Aug. 02, 2017 | Jul. 25, 2017 | Dec. 31, 2017 |
Going Concern Considerations [Line Items] | |||
Common stock, shares issued | 500,000 | ||
Merger Agreement [Member] | |||
Going Concern Considerations [Line Items] | |||
Common stock, shares issued | 9,375,000 | 875,000 | |
Cash held in escrow | $ 1,750 |
Property and Equipment - Summar
Property and Equipment - Summary of Property and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 777 | $ 548 |
Less Accumulated Depreciation | 427 | 416 |
Total | 350 | 132 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 698 | 384 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 79 | $ 164 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property Plant And Equipment [Abstract] | |||
Depreciation expense | $ 162 | $ 86 | $ 92 |
Foreign Exchange Hedging Faci32
Foreign Exchange Hedging Facility - Additional Information (Detail) - Foreign Exchange Forward [Member] - Cash Flow Hedging [Member] | 12 Months Ended | |
Dec. 31, 2016USD ($) | Dec. 31, 2017ForwardContract | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Cash flow hedging losses on forward contracts | $ | $ 325,000 | |
Number of contracts outstanding | ForwardContract | 0 |
Line of Credit - Additional Inf
Line of Credit - Additional Information (Detail) - Agreement [Member] - Silicon Valley Bank [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Oct. 31, 2016 | |
Line of Credit Facility [Line Items] | ||
Line of credit facility, addition of sublimit | $ 2 | |
Credit facility maturity date | Sep. 27, 2017 | |
Mexican Peso Deposits [Member] | ||
Line of Credit Facility [Line Items] | ||
Advance rate against deposits | 70.00% |
Accrued Expenses - Schedule of
Accrued Expenses - Schedule of Accrued Expenses (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Payables And Accruals [Abstract] | ||
Accrued product costs | $ 378 | $ 400 |
Accrued coop advertising | 24 | 44 |
Accrued vacation pay | 177 | 179 |
Income taxes payable | 1 | |
Customer deposits and overpayments | 453 | 568 |
Other accruals | 457 | 406 |
Total | $ 1,490 | $ 1,597 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Loss Contingencies [Line Items] | |||
Lease expiration term | Jun. 30, 2020 | ||
Future minimum payments under operating lease agreements | $ 507,000 | ||
Rent expense | $ 398,000 | $ 417,000 | $ 393,000 |
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 | 2016-04 | ||
Employment agreement expiry date | 2020-04 | ||
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 | 2016-04 | ||
Employment agreement expiry date | 2018-04 | ||
Annual salary under agreement | $ 205,000 | ||
Agreement termination condition | 30 days | ||
Minimum salary period to determine company's obligation under condition | 9 months |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) | Oct. 10, 2017 | Aug. 03, 2017USD ($)$ / sharesshares | Aug. 02, 2017USD ($)$ / sharesshares | Dec. 31, 2017USD ($)Plan$ / sharesshares | Dec. 31, 2016USD ($)shares | Dec. 31, 2015USD ($)$ / 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 | 3,378,280 | 2,877,746 | |||||
Aggregate intrinsic value closing stock price | $ / shares | $ 1.44 | ||||||
Net proceeds from sale of common stock | $ | $ 948,000 | ||||||
Fair value assumption, risk-free interest rates | 1.94% | ||||||
Fair value assumption, expected dividend yields | 0.00% | ||||||
Reverse stock split description | 1-for-5 reverse stock split | ||||||
Reverse stock split, conversion ratio | 0.2 | ||||||
Number of equity incentive plans | Plan | 2 | ||||||
Shares outstanding under equity incentive plans | 171,000 | 215,000 | |||||
Term of vesting schedule | 10 years | ||||||
Vested share exercised | 3 months | ||||||
Stock options granted under equity incentive plans | 0 | 0 | |||||
Aggregate intrinsic value in outstanding stock options | $ | $ 0 | ||||||
Fair value of options granted | $ / shares | $ 1.25 | ||||||
Stock issued during period, stock options exercised | 0 | 0 | 6,000 | ||||
Cash received from exercise of stock options | $ | $ 27,000 | ||||||
Stock options exercise price | $ / shares | $ 4.45 | ||||||
Unrecognized compensation expense related to non-vested stock options | $ | $ 0 | ||||||
Fair value of options that vested | $ | $ 147,000 | $ 302,000 | $ 205,000 | ||||
Maximum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Fair value assumption, expected term (years) | 6 years | ||||||
Fair value assumption, expected volatility | 96.65% | ||||||
Period of option granted vest | 3 years | ||||||
Minimum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Fair value assumption, expected term (years) | 4 years | ||||||
Fair value assumption, expected volatility | 93.41% | ||||||
Period of option granted vest | 2 years | ||||||
2006 Equity Incentive Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares outstanding under equity incentive plans | 124,000 | ||||||
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 | 47,000 | ||||||
Common stock available for future issuance | 260,000 | ||||||
Common stock authorized for issuance there-under | 241,150 | ||||||
2015 Equity Incentive Plan [Member] | Maximum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common stock available for future issuance | 191,734 | ||||||
Cooltech Holding Corp. ("Cooltech") [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common stock, shares issued | 500,000 | ||||||
Common stock price, per share | $ / shares | $ 2 | ||||||
Warrants exercisable into shares of common stock | 500,000 | ||||||
Exercise price of warrants, per share | $ / shares | $ 2.42 | ||||||
Aggregate intrinsic value closing stock price | $ / shares | $ 2.20 | ||||||
Net proceeds from sale of common stock | $ | $ 948,000 | ||||||
Life of warrants, having cashless exercise feature | 3 years | ||||||
Warrants exercise lock-out period | 6 months | ||||||
Fair value of warrants estimated on the date of issuance | $ | $ 364,000 | ||||||
Cooltech Holding Corp. ("Cooltech") [Member] | Stock Purchase Agreement [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common stock, shares issued | 875,000 | ||||||
Common stock price, per share | $ / shares | $ 2 | ||||||
Warrants exercisable into shares of common stock | 875,000 | ||||||
Exercise price of warrants, per share | $ / shares | $ 2.42 | ||||||
Stock purchase agreement date | Aug. 3, 2017 | ||||||
Aggregate purchase price | $ | $ 1,750,000 | ||||||
Cooltech Holding Corp. ("Cooltech") [Member] | Warrants [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Fair value assumption, risk-free interest rates | 1.52% | ||||||
Fair value assumption, expected dividend yields | 0.00% | ||||||
Fair value assumption, expected term (years) | 3 years | ||||||
Fair value assumption, expected volatility | 105.00% |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Stock Option Activity (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Shares, Outstanding, Beginning balance | 215,000 | |
Shares, Granted | 0 | 0 |
Shares, Expired | (28,000) | |
Shares, Forfeited | (16,000) | |
Shares, Outstanding, Ending balance | 171,000 | 215,000 |
Shares, Vested and expected to vest | 171,000 | |
Shares, Exercisable | 171,000 | |
Wtd. Avg. Exercise Price, Outstanding, Beginning balance | $ 5.21 | |
Wtd. Avg. Exercise Price, Expired | 3.40 | |
Wtd. Avg. Exercise Price, Forfeited | 5.87 | |
Wtd. Avg. Exercise Price, Outstanding, Ending balance | 5.44 | $ 5.21 |
Wtd. Avg. Exercise Price, Vested and expected to vest | 5.44 | |
Wtd. Avg. Exercise Price, Exercisable | $ 5.44 | |
Wtd. Avg. Remaining Contractual Life, Outstanding | 3 years 3 months 3 days | |
Wtd. Avg. Remaining Contractual Life, Vested and expected to vest | 3 years 3 months 3 days | |
Wtd. Avg. Remaining Contractual Life, Exercisable | 3 years 3 months 3 days | |
Aggregate Intrinsic Value, Outstanding | $ 0 |
Stockholders' Equity - Summar38
Stockholders' Equity - Summary of Non-Vested Options (Detail) shares in Thousands | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Shares, Non-vested, Beginning balance | shares | 27 |
Shares, Vested | shares | (25) |
Shares, Forfeited | shares | (2) |
Weighted-average grant-date fair value, Non-vested, Beginning balance | $ / shares | $ 5.97 |
Weighted-average grant-date fair value, Vested | $ / shares | 5.97 |
Weighted-average grant-date fair value, Forfeited | $ / shares | $ 5.97 |
Stockholders' Equity - Summar39
Stockholders' Equity - Summary of Share-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Related deferred income tax benefits | $ 0 | $ 0 | $ 0 |
Share-based compensation expense | 137 | 288 | 218 |
Sales, General and Administrative [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total SG&A | 137 | 288 | 218 |
Non-employee Directors [Member] | Sales, General and Administrative [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total SG&A | 33 | 62 | 47 |
Officer Compensation [Member] | Sales, General and Administrative [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total SG&A | 70 | 130 | 97 |
Others [Member] | Sales, General and Administrative [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total SG&A | $ 34 | $ 96 | $ 74 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Income Tax Contingency [Line Items] | |
Federal statutory income tax rate | 34.00% |
Federal net operating loss carryforwards | $ 15,590,000 |
State net operating loss carryforwards | $ 15,822,000 |
State operating loss carryforwards expire date | 2,037 |
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 |
Earliest Tax Year [Member] | |
Income Tax Contingency [Line Items] | |
Open tax year | 2,004 |
Latest Tax Year [Member] | |
Income Tax Contingency [Line Items] | |
Open tax year | 2,017 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Provision (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current tax benefit (provision): | |||
State | $ (3) | $ (2) | $ (3) |
Foreign | 95 | ||
Total | (3) | 93 | (3) |
Deferred tax benefit (provision): | |||
Federal | (1,090) | 838 | (31) |
State | 72 | 52 | 12 |
Total | (1,018) | 890 | (19) |
Change in valuation allowance | 1,018 | (890) | 19 |
Total benefit (provision) for income taxes | $ (3) | $ 93 | $ (3) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal income tax at statutory rate | $ 1,587 | $ 996 | $ 422 |
State taxes, net of federal benefit | 46 | 32 | 6 |
Non-deductible expenses | (441) | (8) | (10) |
Foreign income tax rate differential | (103) | (9) | (443) |
Valuation allowance | 1,018 | (890) | 19 |
Tax Reform | (2,067) | ||
Other | (43) | (28) | 3 |
Total benefit (provision) for income taxes | $ (3) | $ 93 | $ (3) |
Income Taxes - Significant Comp
Income Taxes - Significant Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current deferred tax assets: | ||
Total | $ 322 | $ 514 |
Non-current deferred tax assets: | ||
Total | 4,167 | 4,237 |
Valuation allowance | (4,489) | (4,751) |
Net deferred tax assets | 0 | 0 |
Deferred Tax Current [Member] | ||
Current deferred tax assets: | ||
Allowance for bad debts | 22 | 34 |
Share-based payment expense | 162 | 321 |
Allowance for obsolete inventory | 75 | 30 |
Accrued compensation | 41 | 63 |
Other accruals | 22 | 66 |
Deferred Tax Non-current [Member] | ||
Non-current deferred tax assets: | ||
Depreciation | 16 | |
Capital loss | 179 | |
Net operating loss | 4,116 | 3,991 |
Credit carryover | $ 51 | $ 51 |
Segment and Geographic Inform44
Segment and Geographic Information - Additional Information (Detail) - Segment | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
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 | 5.00% | ||
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] | Mexico [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Company's consolidated net revenue | 35.00% | 39.00% | 28.00% |
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% | ||
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 | 13.00% | ||
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | Latin America [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Company's consolidated net revenue | 14.00% | 18.00% | |
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | Latin America [Member] | U.S.-based Distributor One [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Company's consolidated net revenue | 20.00% | ||
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | Latin America [Member] | U.S.-based Distributor Two [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Company's consolidated net revenue | 12.00% | ||
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | South Africa [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Company's consolidated net revenue | 12.00% | ||
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 | 19.00% | 10.00% |
Segment and Geographic Inform45
Segment and Geographic Information - Schedule of Sales by Geographical Area (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales by geographical area | $ 5,860 | $ 6,008 | $ 5,297 | $ 6,221 | $ 8,615 | $ 8,989 | $ 12,126 | $ 9,410 | $ 23,386 | $ 39,140 | $ 47,833 |
Central America [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales by geographical area | 3,028 | 10,883 | 8,223 | ||||||||
South America [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales by geographical area | 2,906 | 4,849 | 9,879 | ||||||||
Mexico [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales by geographical area | 8,126 | 15,128 | 13,339 | ||||||||
U.S.-based Latin American Distributors [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales by geographical area | 8,782 | 6,992 | 11,853 | ||||||||
United States [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales by geographical area | 1,276 | 4,511 | |||||||||
South Africa [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales by geographical area | $ 544 | ||||||||||
Asia Pacific ("APAC") [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales by geographical area | $ 12 | $ 28 |
Merger and Subsequent Event - A
Merger and Subsequent Event - Additional Information (Detail) - Cooltech Holding Corp. ("Cooltech") [Member] - USD ($) $ / shares in Units, $ in Millions | Jan. 19, 2018 | Aug. 02, 2017 | Jul. 25, 2017 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||
Common stock, shares issued | 500,000 | |||
Warrants exercisable into shares of common stock | 500,000 | |||
Exercise price of warrants, per share | $ 2.42 | |||
Life of warrants, having cashless exercise feature | 3 years | |||
Warrants exercise lock-out period | 6 months | |||
Subsequent Event [Member] | Private Placement [Member] | ||||
Business Acquisition [Line Items] | ||||
Warrants exercisable into shares of common stock | 571,427 | |||
Exercise price of warrants, per share | $ 1.83 | |||
Life of warrants, having cashless exercise feature | 3 years | |||
Warrants exercise lock-out period | 6 months | |||
Subsequent Event [Member] | Convertible Notes [Member] | Private Placement [Member] | ||||
Business Acquisition [Line Items] | ||||
Convertible notes amount | $ 1 | |||
Convertible notes interest rate | 0.00% | |||
Merger Agreement [Member] | ||||
Business Acquisition [Line Items] | ||||
Common stock, shares issued | 9,375,000 | 875,000 |
Quarterly Financial Informati47
Quarterly Financial Information - Quarterly Financial Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 5,860 | $ 6,008 | $ 5,297 | $ 6,221 | $ 8,615 | $ 8,989 | $ 12,126 | $ 9,410 | $ 23,386 | $ 39,140 | $ 47,833 |
Gross profit | 456 | 606 | 605 | 322 | 1,374 | 884 | 1,157 | 1,178 | 1,989 | 4,593 | 7,419 |
Net income (loss) | $ (993) | $ (1,761) | $ (812) | $ (1,104) | $ 48 | $ (945) | $ (1,035) | $ (903) | $ (4,670) | $ (2,835) | $ (1,243) |
Basic and diluted net income (loss) per share | $ (0.29) | $ (0.56) | $ (0.28) | $ (0.38) | $ 0.02 | $ (0.33) | $ (0.36) | $ (0.31) | $ (1.52) | $ (0.99) | $ (0.43) |
Valuation and Qualifying Acco48
Valuation and Qualifying Accounts - Valuation and Qualifying Accounts (Detail) - Allowance for Doubtful Accounts [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance, beginning of year | $ 113 | $ 95 | $ 95 |
Additions charged to operations | 1 | 18 | 0 |
Deletions from Reserve | 0 | ||
Balance, end of year | $ 114 | $ 113 | $ 95 |