Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Feb. 17, 2014 | Jun. 30, 2013 | |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'WINLAND ELECTRONICS INC | ' | ' |
Entity Central Index Key | '0000749935 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Public Float | ' | ' | $2,286,807 |
Entity Common Stock, Shares Outstanding | ' | 3,789,522 | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Balance_Sheets
Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current Assets | ' | ' |
Cash and cash equivalents | $741 | $390 |
Funds held in escrow from sale of manufacturing facility, including land (Note 6) | 0 | 2,641 |
Accounts receivable, less allowance for doubtful accounts of $7 as of both December 31, 2013 and 2012 (Note 9) | 509 | 516 |
Inventories (Note 2) | 366 | 884 |
Prepaid expenses and other assets | 98 | 56 |
Total current assets | 1,714 | 4,487 |
Property and Equipment, at cost (Note 1) | ' | ' |
Machinery and equipment | 213 | 153 |
Data processing equipment | 107 | 125 |
Office furniture and equipment | 19 | 43 |
Total property and equipment | 339 | 321 |
Less accumulated depreciation and amortization | 243 | 278 |
Net property and equipment | 96 | 43 |
Long-term inventories (Note 2) | 56 | 0 |
Total assets | 1,866 | 4,530 |
Current Liabilities | ' | ' |
Accounts payable | 277 | 503 |
Accrued liabilities: | ' | ' |
Compensation (Note 11) | 130 | 60 |
Other | 68 | 30 |
Total current liabilities | 475 | 593 |
Commitments and Contingencies | ' | ' |
Stockholders' Equity (Notes 5 and 10) | ' | ' |
Common stock, par value $0.01 per share; authorized 20,000,000 shares; issued and outstanding 3,789,522 and 3,701,630 shares as of December 31, 2013 and 2012, respectively | 38 | 37 |
Additional paid-in capital | 5,123 | 5,055 |
Accumulated deficit | -3,770 | -1,155 |
Total stockholders' equity | 1,391 | 3,937 |
Total liabilities and stockholders' equity | $1,866 | $4,530 |
Balance_Sheets_Parenthetical
Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Current Assets | ' | ' |
Accounts receivable, allowance for doubtful accounts | $7 | $7 |
Stockholders' Equity | ' | ' |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, shares issued (in shares) | 3,789,522 | 3,701,630 |
Common stock, shares outstanding (in shares) | 3,789,522 | 3,701,630 |
Statements_of_Operations
Statements of Operations (USD $) | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | ||
Statements of Operations [Abstract] | ' | ' | ||
Net sales (Note 9) | $3,640 | $3,713 | ||
Cost of sales | 2,741 | 2,622 | ||
Gross profit | 899 | 1,091 | ||
Operating expenses: | ' | ' | ||
General and administrative | 1,540 | 762 | ||
Sales and marketing | 1,075 | 688 | ||
Research and development | 902 | 285 | ||
Total operating expenses | 3,517 | 1,735 | ||
Operating loss | -2,618 | -644 | ||
Other income: | ' | ' | ||
Other, net | 3 | 10 | ||
Total other income (expenses) | 3 | 10 | ||
Loss from continuing operations before income taxes | -2,615 | -634 | ||
Income tax expense (Note 4) | 0 | 0 | ||
Loss from continuing operations | -2,615 | -634 | ||
Income from discontinued operations, net of tax | 0 | [1] | 655 | [1] |
Net income (loss) | ($2,615) | $21 | ||
Income (loss) per common share data: | ' | ' | ||
Basic and diluted (in dollars per share) | ($0.70) | $0.01 | ||
Loss from continuing operations per common share data: | ' | ' | ||
Basic and diluted (in dollars per share) | ($0.70) | ($0.17) | ||
Income from discontinued operations per common share data: | ' | ' | ||
Basic and diluted (in dollars per share) | $0 | $0.18 | ||
Weighted-average number of common shares outstanding: | ' | ' | ||
Basic and diluted (in shares) | 3,753,561 | 3,701,630 | ||
[1] | 2012 includes gain on sale of land and building of $506 |
Statements_of_Changes_in_Stock
Statements of Changes in Stockholders' Equity (USD $) | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Total |
In Thousands, except Share data, unless otherwise specified | ||||
Balance at Dec. 31, 2011 | $37 | $5,014 | ($1,176) | $3,875 |
Balance (in shares) at Dec. 31, 2011 | 3,701,630 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' |
Stock-based compensation expense | 0 | 41 | 0 | 41 |
Net income | 0 | 0 | 21 | 21 |
Balance at Dec. 31, 2012 | 37 | 5,055 | -1,155 | 3,937 |
Balance (in shares) at Dec. 31, 2012 | 3,701,630 | ' | ' | 3,701,630 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' |
Issuance of restricted common stock | 1 | 59 | 0 | 60 |
Issuance of restricted common stock (in shares) | 87,892 | ' | ' | ' |
Stock-based compensation expense | 0 | 9 | 0 | 9 |
Net income | 0 | 0 | -2,615 | -2,615 |
Balance at Dec. 31, 2013 | $38 | $5,123 | ($3,770) | $1,391 |
Balance (in shares) at Dec. 31, 2013 | 3,789,522 | ' | ' | 3,789,522 |
Statements_of_Cash_Flows
Statements of Cash Flows (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Cash Flows From Operating Activities | ' | ' |
Net income (loss) | ($2,615) | $21 |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ' | ' |
Depreciation and amortization | 28 | 32 |
Non-cash stock based compensation expense | 69 | 41 |
Gain on sale of facility, including land | 0 | -506 |
Increase in allowance for obsolete inventory | 215 | 0 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | 7 | -67 |
Inventories | 247 | -317 |
Deferred rent receivable | 0 | 261 |
Prepaid expenses and other assets | -42 | -25 |
Accounts payable | -226 | 82 |
Accrued liabilities, including deferred revenue | 108 | -156 |
Net cash used in operating activities | -2,209 | -634 |
Cash Flows From Investing Activities | ' | ' |
Purchases of property and equipment | -81 | -7 |
Receipt of funds held in escrow | 2,641 | 0 |
Net cash provided by (used in) investing activities | 2,560 | -7 |
Net increase (decrease) in cash and cash equivalents | 351 | -641 |
Cash and cash equivalents | ' | ' |
Beginning of year | 390 | 1,031 |
End of year | 741 | 390 |
Non-cash investing activities: | ' | ' |
Funds held in escrow from sale of manufacturing facility | $0 | $2,641 |
Nature_of_Business_and_Signifi
Nature of Business and Significant Accounting Policies | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Nature of Business and Significant Accounting Policies [Abstract] | ' | ||||||||
Nature of Business and Significant Accounting Policies | ' | ||||||||
Note 1. Nature of Business and Significant Accounting Policies | |||||||||
Nature of business: Winland Electronics, Inc. ("Winland" or the "Company") provides a line of proprietary environmental monitoring products to the security industry. In most cases, these products are manufactured to protect against loss of assets due to damage from water, excess humidity, extremes of temperature and loss of power. These Winland branded and trademarked products accounted for 100% of the Company's revenue in 2013 and 2012. | |||||||||
Discontinued Operations: Included in discontinued operations is Winland's land and building. The assets were not classified as non-current discontinued assets prior to the sale of the assets on December 31, 2012, as the Company received significant cash flows from the asset group until the sale date. As a result of the sale of the land and building on December 31, 2012, the Company determined it would not have any significant continuing involvement in the operations of the asset group after the disposal date and, therefore, reclassified for all periods presented the operations and the gain on sale of the land and building as discontinued operations. | |||||||||
This transaction met the requirements of ASC 205-20 "Discontinued Operations" as being held for sale as December 31, 2012. Accordingly, the Company has restated the previously reported financial results to report the net results as a separate line in the statements of operations as "Income from discontinued operations, net of tax" for all periods presented. In accordance with ASC 205-20-S99-3 "Allocation of Interest to Discontinued Operations", the Company elected to not allocate interest expense to the discontinued operations where the debt is not directly attributed to or related to the discontinued operations. Notes to the financial statements have been revised to reflect only the results of continuing operations (see Note 6). | |||||||||
A summary of Winland's significant accounting policies follow: | |||||||||
Use of estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and related disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include allowances for obsolete inventories, rework and warranties, valuation of long-lived assets and doubtful accounts. Winland cannot assure that actual results will not differ from those estimates. | |||||||||
Revenue Recognition: Revenue is recognized from the sale of products and out of warranty repairs when the product is delivered to a common carrier for shipment and title transfers. | |||||||||
Shipping and handling charges billed to customers are included in net sales, and shipping and handling costs incurred by the Company are included in cost of sales. For all sales, Winland has a binding purchase order from the customer. Winland does not generally accept returns but does provide a limited warranty as outlined below under Allowance for Rework and Warranty Costs. Sales and use taxes are reported on a net basis, excluding them from sales and cost of sales. | |||||||||
Cash and cash equivalents: Cash and cash equivalents include money market mutual funds and other highly liquid investments defined as maturities of three months or less from date of purchase. Winland maintains its cash in bank deposit accounts which, at times, may exceed federally insured limits. Winland has not experienced any losses in such accounts. | |||||||||
Allowance for Doubtful Accounts: The Company generally requires no collateral from its customer with respect to trade accounts receivable. Invoices are generally due 30 days after presentation. Accounts receivable over 30 days are considered past due. No interest is charged on past due accounts. Winland evaluates its allowance for uncollectible accounts on a quarterly basis and reviews any significant customers with delinquent balances to determine future collectability. Winland bases its determinations on legal issues, past history, current financial and credit agency reports, and experience. Winland reserves for accounts deemed to be uncollectible in the quarter in which the determination is made. Management believes these values are estimates and may differ from actual results. Winland believes that, based on past history and credit policies, the net accounts receivable are of good quality. The Company writes off accounts receivable when they are deemed uncollectible and records recoveries of trade receivables previously written off when collected. The Allowance for Doubtful Accounts was $7 at both December 31, 2013 and 2012. | |||||||||
Inventory Valuation: Raw component and finished goods inventories are stated at the lower of cost, using the first-in, first-out (FIFO) method, or market value. Winland estimates excess, slow moving and obsolete reserves for inventory on a quarterly basis based upon order demand and production requirements for its major customers and annual reviews for other customers. Management's estimated reserve for slow moving and obsolete finished goods inventories was $239 and $24 as of December 31, 2013 and 2012, respectively. | |||||||||
Depreciation: Depreciation is computed using the straight-line method based on the estimated useful lives of the various assets, as follows: | |||||||||
Years | |||||||||
Machinery and equipment | 5 – 7 | ||||||||
Data processing equipment | 3 – 7 | ||||||||
Office furniture and equipment | 3 – 7 | ||||||||
Long-lived assets: Considerable management judgment is necessary in estimating future cash flows and other factors affecting the valuation of long-lived assets including the operating and macroeconomic factors that may affect them. The Company uses historical financial information, internal plans and projections and industry information in making such estimates. While the Company currently believes the expected cash flows from these long-lived assets exceeds the carrying amount, materially different assumptions regarding future performance and discount rates could result in future impairment losses. Such impairment would adversely affect earnings. No impairment losses were recognized in 2013 or 2012. | |||||||||
Allowance for Rework and Warranty Costs: Winland provides a limited warranty for its products for a period of one year, which requires Winland to repair or replace defective product at no cost to the customer or refund the purchase price. Reserves are established based on historical experience and analysis for specific known and potential warranty issues. The reserve reflecting historical experience and potential warranty issues is determined based on experience factors including rate of return by item, average weeks outstanding from production to return, average cost of repair and relation of repair cost to original sales price. Any specific known warranty issues are considered individually. These are analyzed to determine the probability and the amount of financial exposure, and a specific reserve is established. The allowance for rework and warranty costs was $15 at both December 31, 2013 and 2012. The product warranty liability reflects management's best estimate of probable liability under Winland's product warranties and may differ from actual results. | |||||||||
Changes in Winland's warranty liability, which is included in other accrued liabilities on the balance sheets, are approximately as follows: | |||||||||
For the Years Ended December 31, | |||||||||
($ in thousands) | 2013 | 2012 | |||||||
Balance, Beginning | $ | 15 | $ | 13 | |||||
Accruals for products sold | 10 | 20 | |||||||
Expensing of specific warranty items | (10 | ) | (15 | ) | |||||
Change in estimate | - | (3 | ) | ||||||
Balance, Ending | $ | 15 | $ | 15 | |||||
Income taxes: Income taxes are accounted for in accordance with FASB ASC Topic 740 Income Taxes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. | |||||||||
In assessing the realizability of deferred income tax assets, Winland considers whether it is "more likely than not," according to the criteria that some portion or all of the deferred income tax assets will be realized. The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. | |||||||||
Per FASB ASC 740-10-25-5 Winland recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more likely than not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant tax authority. | |||||||||
Fair value of financial instruments: The carrying values of cash and cash equivalents, accounts receivable and accounts payable approximate their fair value due to the short-term nature of these instruments. | |||||||||
Income (loss) per common share: Basic income (loss) per common share is computed by dividing the net income (loss) by the weighted-average number of common shares outstanding during the period. Diluted income (loss) per common share is computed by dividing the net income (loss) by the weighted-average number of common shares outstanding during the period, including potentially dilutive shares such as the options and warrants to purchase shares of common stock at various amounts per share (see Note 5). | |||||||||
For years ended December 31, 2013 and 2012, the diluted loss per share was the same as basic loss per share since the effects of options and warrants would have been anti-dilutive. The diluted share calculation excluded 303,000 and 471,000 shares for the years ended December 31, 2013 and 2012, respectively, as inclusion of these shares would have been anti-dilutive. | |||||||||
Employee stock based compensation plans: At December 31, 2013, Winland had stock-based compensation plans, which are described more fully in Note 5. Winland accounts for these plans under FASB ASC Topic 718, Stock Compensation. | |||||||||
Advertising expense: Advertising is expensed as incurred and was $7 and $14 for the years ended December 31, 2013 and 2012, respectively. | |||||||||
Research and Development Expense: The Company expenses research and development costs as incurred. Research and development expenses of $902 and $285 were charged to operations during the years ended December 31, 2013 and 2012, respectively. | |||||||||
Subsequent events: The Company evaluates events occurring after the date of the financial statements for events requiring recording or disclosure in the financial statements. |
Inventories
Inventories | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventories [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
Note 2. Inventories | |||||||||
The components of inventories at December 31, 2013 and 2012 were as follows: | |||||||||
31-Dec | 31-Dec | ||||||||
2013 | 2012 | ||||||||
Raw materials | $ | 16 | $ | 114 | |||||
Finished goods | 406 | 770 | |||||||
Total, net | $ | 422 | $ | 884 | |||||
As of December 31, 2013, $56 represents long-term inventories, net that the Company does not expect to sell within the next twelve months and do not consider these items excess or obsolete. The December 31, 2012 balance was all considered short-term inventory. |
Deferred_Revenue
Deferred Revenue | 12 Months Ended |
Dec. 31, 2013 | |
Deferred Revenue [Abstract] | ' |
Deferred Revenue | ' |
Note 3. Deferred Revenue | |
During 1994, Winland and the city of Mankato entered into a tax increment financing agreement for the construction of its operating facility. In connection with this agreement, the city donated land improvements to Winland with a fair value of $270. The fair value of land improvements donated was accounted for as deferred revenue and is being amortized over 39 years, which is the life of the building. On December 31, 2012, deferred revenue remaining of $106 was recognized as income due to the sale of the manufacturing facility and is included in income from discontinued operations on the Statement of Operations for the year ended December 31, 2012. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Income Taxes [Abstract] | ' | ||||||||
Income Taxes | ' | ||||||||
Note 4. Income Taxes | |||||||||
The statutory income tax rate reconciliation for continuing operations to the effective rate is as follows: | |||||||||
31-Dec | 31-Dec | ||||||||
2013 | 2012 | ||||||||
Statutory U.S. income tax rate | 34 | % | 34 | % | |||||
State benefit, net of federal tax effect | 1 | 4 | |||||||
Change in valuation allowance | (35 | ) | (40 | ) | |||||
Other, including permanent differences | - | 2 | |||||||
Effective income tax benefit rate | - | % | - | % | |||||
Deferred tax assets (liabilities) consist of the following components as of: | |||||||||
31-Dec | 31-Dec | ||||||||
2013 | 2012 | ||||||||
Deferred tax assets: | |||||||||
Inventory | $ | 89 | $ | 23 | |||||
Allowance for doubtful accounts | 2 | 2 | |||||||
Non-qualified stock options | 95 | 89 | |||||||
Accrued expenses | 2 | 3 | |||||||
Research credit carryover | 8 | 8 | |||||||
Net operating loss carryforward | 2,584 | 1,733 | |||||||
Other | 14 | 23 | |||||||
Valuation allowance | (2,743 | ) | (1,853 | ) | |||||
51 | 28 | ||||||||
Deferred tax liabilities: | |||||||||
Property and equipment | (19 | ) | (9 | ) | |||||
Prepaid expenses | (32 | ) | (19 | ) | |||||
(51 | ) | (28 | ) | ||||||
Net deferred tax assets | $ | - | $ | - | |||||
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The Company records a tax valuation allowance when it is more likely than not that it will not be able to recover the value of its deferred tax assets. The valuation allowance for deferred tax assets as of December 31, 2013 and 2012 was $2,743 and $1,853, respectively. The net change in the total valuation allowance for the years ended December 31, 2013 and 2012 was an increase (decrease) of $890 and $(36), respectively. The tax effect of the Company's valuation allowance for deferred tax assets is included in the annual effective tax rate. | |||||||||
The Company calculated its estimated annualized effective tax expense (benefit) rate at 0% for both December 31, 2013 and 2012. The Company had no income tax expense based on its $2,615 pre-tax loss from continuing operations for the year ended 2013. The Company had no income tax expense based on its $634 pre-tax loss from continuing operations for the year ended 2012. | |||||||||
The Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant tax authority. | |||||||||
The Company files income tax returns in the U.S. federal and state jurisdictions with years 2010 through 2013 remaining open for examination by the IRS and state agencies. | |||||||||
The Company recognizes interest accrued on unrecognized tax benefits as well as interest received from favorable tax settlements within interest expense. The Company recognizes penalties accrued on unrecognized tax benefits within general and administrative expenses. As of December 31, 2013 and 2012, the Company recognized no interest or penalties related to uncertain tax positions due to their insignificance to its financial position and results of operations. | |||||||||
At December 31, 2013, the Company had net operating loss carryforwards for federal purposes of $6,712 and $4,660 for state income tax purposes that are available to offset future taxable income and begin to expire in the year 2022. At December 31, 2013, the Company had Minnesota research and development tax credit carryforwards of $12, which begin to expire in the year 2022. | |||||||||
The Company does not anticipate that the total amount of unrecognized tax benefits will change significantly in the next twelve months. |
Warrants_and_StockBased_Compen
Warrants and Stock-Based Compensation Plans | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||
Warrants and Stock-Based Compensation Plans [Abstract] | ' | ||||||||||||||||||||||
Warrants and Stock-Based Compensation Plans | ' | ||||||||||||||||||||||
Note 5. Warrants and Stock-Based Compensation Plans | |||||||||||||||||||||||
Warrants: The Company has warrants outstanding to purchase 2,500 shares of common stock at a weighted average exercise price of $4.01 per share. These warrants were granted prior to 2007 and expire on February 16, 2016. | |||||||||||||||||||||||
Stock option plans: As of December 31, 2013, Winland had one equity-based compensation plan, the 2013 Equity Incentive Plan, from which stock-based compensation awards can be granted to eligible employees, officers or directors. Previous to this plan, stock-based compensation awards were granted from the 2008 and 2005 Equity Incentive Plan. The plans are as follows: | |||||||||||||||||||||||
2013 Equity Incentive Plan – This plan provides awards in the form of incentive stock options, nonqualified stock options, and restricted stock. Currently, this is the only plan under which awards are authorized for grant. As approved by the shareholders in May 2013, up to 350,000 shares are authorized for issuance under the plan. Awards issued under the plan as of December 31, 2013 include 30,000 shares of incentive stock options of which none are vested at December 31, 2013. The exercise price is equal to the fair market value of Winland's common stock at the date of grant. Options generally vest over five years and have a contractual life up to ten years. Option awards provide for accelerated vesting if substantially all of Winland's assets are transferred through an acquisition, merger, reorganization or other similar change of control transaction. The Company issues new shares upon the exercise of options. | |||||||||||||||||||||||
2008 Equity Incentive Plan – This plan provided grants in the form of incentive stock options, nonqualified stock options, and restricted stock. This plan was terminated as to future grants in May 2013. As of December 31, 2013, there were 259,500 options outstanding under this plan of which 209,500 are vested. | |||||||||||||||||||||||
2005 Equity Incentive Plan – This plan provided grants in the form of incentive stock options, nonqualified stock options, and restricted stock. This plan was terminated as to future grants in May 2008. As of December 31, 2013, there were 11,000 options outstanding under this plan of which 11,000 are vested. | |||||||||||||||||||||||
Winland uses the Black-Scholes option pricing model to estimate the fair value of stock-based awards with the following weighted-average assumptions for the indicated periods. | |||||||||||||||||||||||
31-Dec | 31-Dec | ||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
Expected life, in years | 4 | 4 | |||||||||||||||||||||
Expected volatility | 79.1 | % | 79.1 | % | |||||||||||||||||||
Risk-free interest rate | 0.4 | % | 0.4 | % | |||||||||||||||||||
Dividend yield | 0 | % | 0 | % | |||||||||||||||||||
Winland calculates the expected life of awards using historical data to estimate option exercises and employee terminations. Expected volatility is based on daily historical fluctuations of Winland's common stock using the closing market value for the number of days of the expected term immediately preceding the grant. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of the grant for a bond with a similar term. The dividend yield is based on the expectation that Winland will not pay dividends. | |||||||||||||||||||||||
Winland receives a tax deduction for certain stock option exercises and disqualifying stock dispositions during the period the options are exercised or the stock is sold, generally for the excess of the price at which the shares are sold over the exercise prices of the options. In accordance with FASB ASC 718-10-50-1, Winland revised its presentation in the Statements of Cash Flows to report any tax benefit from the exercise of stock options as financing cash flows. For the years ended December 31, 2013 and 2012, there were no such stock option exercises and disqualifying stock dispositions. No options were exercised for the years ended December 31, 2013 and 2012. | |||||||||||||||||||||||
The following table represents stock option activity for the years ended December 31, 2013 and 2012: | |||||||||||||||||||||||
Weighted Average Remaining Contract Life | |||||||||||||||||||||||
Weighted Average Exercise Price | |||||||||||||||||||||||
Number of Shares | Aggregate Intrinsic Value | ||||||||||||||||||||||
Outstanding options at January 1, 2012 | 187,500 | $ | 1.62 | ||||||||||||||||||||
Granted | 305,000 | 0.72 | |||||||||||||||||||||
Forfeited | (24,000 | ) | 3.62 | ||||||||||||||||||||
Outstanding options at December 31, 2012 | 468,500 | $ | 0.93 | 8.2 | $ | 42 | |||||||||||||||||
Exercisable at December 31, 2012 | 283,500 | $ | 0.99 | 7.1 | $ | 42 | |||||||||||||||||
Outstanding options at January 1, 2013 | |||||||||||||||||||||||
Granted | 285,000 | 0.66 | |||||||||||||||||||||
Forfeited | (453,000 | ) | 0.86 | ||||||||||||||||||||
Outstanding options at December 31, 2013 | 300,500 | $ | 0.78 | 6.4 | $ | 6 | |||||||||||||||||
Exercisable at December 31, 2013 | 220,500 | $ | 0.81 | 5.4 | $ | 6 | |||||||||||||||||
The aggregate intrinsic value of options outstanding and options exercisable is based upon the Company's closing stock price on the last trading day of the fiscal year for the in-the-money options. | |||||||||||||||||||||||
The weighted average fair value of stock options granted with an exercise price equal to the deemed stock price on the date of grant was $0.41 during both 2013 and 2012. | |||||||||||||||||||||||
The total fair value of shares vested during the years ended December 31, 2013 and 2012 was $0 and $38, respectively. | |||||||||||||||||||||||
The following table summarizes information about stock options outstanding at December 31, 2013: | |||||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||||
Weighted-Average Remaining Contractual Life (Years) | |||||||||||||||||||||||
Range of Exercise Prices | Weighted-Average Exercise Price | Weighted-Average Exercise Price | |||||||||||||||||||||
Number of Shares | Number of Shares | ||||||||||||||||||||||
$ | 0.448 - $0.896 | 273,000 | 6.6 | $ | 0.64 | 193,000 | $ | 0.63 | |||||||||||||||
$ | 0.896 - $1.792 | 16,500 | 4.3 | 1.74 | 16,500 | 1.74 | |||||||||||||||||
$ | 1.792 - $2.240 | 5,500 | 4 | 2.23 | 5,500 | 2.23 | |||||||||||||||||
$ | 2.240 - $3.584 | 5,500 | 3.4 | 3.25 | 5,500 | 3.25 | |||||||||||||||||
300,500 | 6.4 | $ | 0.78 | 220,500 | $ | 0.81 | |||||||||||||||||
At December 31, 2013, there was $19 unrecognized compensation cost, adjusted for estimated forfeitures, related to share-based payments which is expected to be recognized over a weighted-average period of 2.2 years and will be adjusted for any future changes in estimated forfeitures. |
Discontinued_Operations
Discontinued Operations | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Discontinued Operations [Abstract] | ' | ||||||||
Discontinued Operations | ' | ||||||||
Note 6. Discontinued Operations | |||||||||
On January 1, 2011, Nortech entered into a commercial building lease (the “Lease”) with the Company to lease the entire office and manufacturing facility located at 1950 Excel Drive, Mankato, MN from the Company. The term of the Lease was scheduled to terminate on January 1, 2017 with Nortech required to pay rent of $5.25 per square foot ($305 annually) commencing on January 1, 2012. The Lease provided for a 2.5% increase on the third anniversary and requires Nortech to pay all operating costs including real estate taxes. Nortech also had the right of first refusal upon sale of the property as defined in the Lease. The lease terminated on December 31, 2012 with the sale of the building as noted below. | |||||||||
On November 27, 2012, Winland executed a Purchase Agreement (“Agreement”) with Nortech Systems, Inc. (“Nortech”) to sell the above mentioned facility and land. The agreed upon purchase price was $2,650. Winland and Nortech executed the closing documents on December 31, 2012 with the funds placed in to escrow with North American Title Company. Winland received the funds on January 8, 2013. The building and land had a carrying cost of $2,135, resulting in a gain of $506, after deducting expenses related to the sale of $9. Rental revenue for the year ended December 31, 2012, was $261 reduced by $218 for the reversal of unamortized rental revenue recognized on the straight-line basis in 2011. For the year ended December 31, 2012, the Company also recognized income of $106 related to the remaining unamortized deferred revenue associated with the tax increment financing associated with the facility. | |||||||||
The assets were not classified as non-current discontinued assets prior to the sale of the assets on December 31, 2012, as the Company received significant cash flows from the asset group until the sale date. As a result of the sale of the land and building on December 31, 2012, the Company determined it would not have any significant continuing involvement in the operations of the asset group after the disposal date and, therefore, reclassified for all periods presented the operations and the gain on sale of the land and building as discontinued operations. | |||||||||
In connection with the Company’s sale of its office and manufacturing facility and improvements to Nortech, the Company entered into a month-to-month lease agreement with Nortech for the lease of 1,900 square feet of office space at $5.25 per square foot. | |||||||||
Amounts included in discontinued operations for the years ended December 31, 2013 and 2012 were as follows: | |||||||||
Year ended December 31, | |||||||||
(in thousands) | 2013 | 2012 | |||||||
Net sales | $ | - | $ | - | |||||
Gross profit (loss) | - | - | |||||||
Income from discontinued operations (1) | - | 655 | |||||||
(1) 2012 includes gain on sale of land and building of $506 | |||||||||
There was no income tax expense or benefit from discontinued operations for either year ended December 31, 2013 or 2012. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2013 | |
Commitments and Contingencies [Abstract] | ' |
Commitments and Contingencies | ' |
Note 7. Commitments and Contingencies | |
Operating leases: On December 21, 2012, Winland entered into a month-to-month leash with Nortech to lease 1,924 square feet of office spance at 1950 Excel Drive, Mankata, MN, the Company's prior manufacturing facility. This office space is used for the Company's operations including customer service, technical support and finance. | |
On January 1, 2013, the Company entered in to a twelve month lease for office space at 601 Carlson Parkway, Suite 1050, Minnetonka, MN which is used for the Company's sales and marketing, product management and executive staff. The lease was cancelled on September 30, 2013 and the Company incurred no cancellation fees. | |
On September 11, 2013, the Company entered in to a twelve month lease for office space at 100 North Sixth Street, Suite 604A, Minneapolis, MN with a commencement date of October 1, 2013. The office was used for the Company's sales and marketing, product management and executive staff. The lease was cancelled on December 31, 2013 with the Company incurring $44 of cancellation expense which was included in general and administrative expense for the year ended December 31, 2013. No further obligations associated with this lease exist as of December 31, 2013. | |
Rent expense of $102 and $11 for the years ended December 31, 2013 and 2012, respectively is included in general and administrative expenses. | |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2013 | |
Employee Benefit Plans [Abstract] | ' |
Employee Benefit Plans | ' |
Note 8. Employee Benefit Plans | |
Health Savings Account: Winland has a health savings account plan for its employees who meet certain service requirements. The plan provides for Winland to make contributions equal to one-half the deductible limit elected by the employee. The employee may also make contributions equal to one-half the deductible limit elected. Winland makes contributions to the plan on a quarterly basis on the first day of each quarter. The contributions cannot be refunded to Winland if the employee's employment with Winland is terminated voluntarily or involuntarily. Winland contributed approximately $18 and $13 to the plan for the years ended December 31, 2013 and 2012, respectively. |
Major_Customers
Major Customers | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Major Customers [Abstract] | ' | ||||||||
Major Customers | ' | ||||||||
Note 9. Major Customers | |||||||||
Winland had customers which accounted for more than 10 percent of net sales and accounts receivable for the years ended December 31, 2013 and 2012, as follows: | |||||||||
2013 | 2012 | ||||||||
Sales percentage: | |||||||||
Customer A | 50 | % | 52 | % | |||||
Customer B | 12 | % | 10 | % | |||||
Accounts receivable percentage at December 31: | |||||||||
Customer A | 55 | % | 56 | % | |||||
Customer B | 21 | % | 16 | % |
Shareholder_Rights_Plan
Shareholder Rights Plan | 12 Months Ended |
Dec. 31, 2013 | |
Shareholder Rights Plan [Abstract] | ' |
Shareholder Rights Plan | ' |
Note 10. Shareholder Rights Plan | |
On February 27, 2014, the Company entered into a Section 382 Rights Agreement with Wells Fargo, National Association, dated as of February 27, 2014 (the "382 Rights Agreement"). The purpose of the 382 Rights Agreement is to help protect the Company's net operating loss tax asset by deterring certain acquisitions of Company stock by persons or groups beneficially owning 5% or more of the Company's outstanding stock, which could have the effect of limiting the Company's ability to use its built in losses and any resulting net loss carry forwards to reduce potential future federal income tax obligations. The Company's ability to use its net loss carry forwards in the future may be significantly limited if it experiences an "ownership change" for U.S. federal income tax purposes. In general, an ownership change will occur when the percentage of the Company's ownership (by value) of one or more "5 percent shareholders" (as defined in the Internal Revenue Code of 1986, as amended) has increased by more than 50 percent over the lowest percentage owned by such shareholders at any time during the prior three years (calculated on a rolling basis). | |
Under the 382 Rights Agreement, from and after the record date of March 10, 2014 (the "Record Date"), each share of Company Common Stock will carry with it one preferred share purchase right (a "Right"). In connection with adoption of the Section 382 Rights Agreement, the Board declared a dividend distribution of the Rights to shareholders of record on the Record Date. Each Right will allow its holder to purchase from the Company one one-thousandth of a share of Series B Junior Participating Preferred Stock for $14.00 (the "Exercise Price"). The Rights will not be exercisable until 10 days after the public announcement that a person or group has become an "Acquiring Person" by obtaining beneficial ownership of 4.99% or more of the Company's outstanding Common Stock, or by the future acquisition of any shares of Company common stock by any person or group who held 4.99% or more of the Company's outstanding common stock as of the date the 382 Rights Agreement was adopted. If a person or group becomes an Acquiring Person, all holders of Rights except the Acquiring Person may, for payment of the Exercise Price, purchase shares of Common Stock with a market value of twice the Exercise Price, based on the market price of the Common Stock as of the acquisition that resulted in such person or group becoming an Acquiring Person. Prior to exercise, the Right does not give its holder any dividend, voting, or liquidation rights. The Rights will expire on March 10, 2019 and are redeemable by the Board for $0.000001 per Right at any time prior to a person or group becoming an Acquiring Person. The Board has discretion under the 382 Rights Agreement to exempt any person or group from status as an Acquiring Person if the Board determines such person or group's acquisition will not limit the Company's use of its net loss carry forwards. The Company previously had a Shareholder Rights Plan, the Rights under which expired on December 9, 2013. |
Severance_Expense
Severance Expense | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Severance Expense [Abstract] | ' | ||||||||||||||||
Severance Expense | ' | ||||||||||||||||
Note 11. Severance Expense | |||||||||||||||||
On January 1, 2011, the Company agreed to terminate the employment relationships of its then Chief Executive Officer and Chief Financial Officer. Pursuant to the separation agreements, the Company agreed to pay salaries due to the former executives totaling $358. The agreements call for the amounts to be paid at regular payroll intervals over the term of the agreement. The final $43 of severance payments associated with these separation agreements were made in the first quarter of 2012. | |||||||||||||||||
On November 15, 2013, the Company agreed to terminate the employment relationship of its then Chief Executive Officer. Pursuant to the separation agreement, the Company agreed to pay a lump sum to the former executive totaling $200 which is included in general and administrative expense. | |||||||||||||||||
On November 15, 2013, the Company agreed to terminate the employment relationship of its then Vice President of Marketing. Pursuant to the separation agreement, the Company agreed to pay salaries due to the former employee totaling $34 which is included in sales and marketing expense. The agreement calls for the amount to be paid at regular payroll intervals over the term of the agreement. The accrual for severance was included in Accrued Liabilities: Compensation on the balance sheet at December 31, 2013. | |||||||||||||||||
On December 27, 2013, the Company agreed to terminate the employment relationship of its then Chief Information Officer. Pursuant to the separation agreement, the Company agreed to pay salaries due to the former employee totaling $79 which is included in research and development expense. The agreement calls for the amount to be paid at regular payroll intervals over the term of the agreement. The accrual for severance was included in Accrued Liabilities: Compensation on the balance sheet at December 31, 2013. | |||||||||||||||||
The following table provides financial information on the employee severance expense payable at December 31, 2013 and 2012. | |||||||||||||||||
31-Dec-11 | Net Additions | Payments | 31-Dec-12 | ||||||||||||||
Employee Severance Expense | $ | 43 | $ | - | $ | (43 | ) | $ | - | ||||||||
31-Dec-12 | Net Additions | Payments | 31-Dec-13 | ||||||||||||||
Employee Severance Expense | $ | - | $ | 313 | $ | (208 | ) | $ | 105 | ||||||||
The $105 of severance expense payable will be paid out during the first five months of 2014. | |||||||||||||||||
As part of the Company’s employment agreement with its Chief Financial Officer, if such executive officer is terminated without cause, severance payments may be due to such executive officer. |
Nature_of_Business_and_Signifi1
Nature of Business and Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Nature of Business and Significant Accounting Policies [Abstract] | ' | ||||||||
Discontinued Operations | ' | ||||||||
Discontinued Operations: Included in discontinued operations is Winland's land and building. The assets were not classified as non-current discontinued assets prior to the sale of the assets on December 31, 2012, as the Company received significant cash flows from the asset group until the sale date. As a result of the sale of the land and building on December 31, 2012, the Company determined it would not have any significant continuing involvement in the operations of the asset group after the disposal date and, therefore, reclassified for all periods presented the operations and the gain on sale of the land and building as discontinued operations. | |||||||||
This transaction met the requirements of ASC 205-20 "Discontinued Operations" as being held for sale as December 31, 2012. Accordingly, the Company has restated the previously reported financial results to report the net results as a separate line in the statements of operations as "Income from discontinued operations, net of tax" for all periods presented. In accordance with ASC 205-20-S99-3 "Allocation of Interest to Discontinued Operations", the Company elected to not allocate interest expense to the discontinued operations where the debt is not directly attributed to or related to the discontinued operations. Notes to the financial statements have been revised to reflect only the results of continuing operations (see Note 6). | |||||||||
Use of estimates | ' | ||||||||
Use of estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and related disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include allowances for obsolete inventories, rework and warranties, valuation of long-lived assets and doubtful accounts. Winland cannot assure that actual results will not differ from those estimates. | |||||||||
Revenue Recognition | ' | ||||||||
Revenue Recognition: Revenue is recognized from the sale of products and out of warranty repairs when the product is delivered to a common carrier for shipment and title transfers. | |||||||||
Shipping and handling charges billed to customers are included in net sales, and shipping and handling costs incurred by the Company are included in cost of sales. For all sales, Winland has a binding purchase order from the customer. Winland does not generally accept returns but does provide a limited warranty as outlined below under Allowance for Rework and Warranty Costs. Sales and use taxes are reported on a net basis, excluding them from sales and cost of sales. | |||||||||
Cash and cash equivalents | ' | ||||||||
Cash and cash equivalents: Cash and cash equivalents include money market mutual funds and other highly liquid investments defined as maturities of three months or less from date of purchase. Winland maintains its cash in bank deposit accounts which, at times, may exceed federally insured limits. Winland has not experienced any losses in such accounts. | |||||||||
Allowance for Doubtful Accounts | ' | ||||||||
Allowance for Doubtful Accounts: The Company generally requires no collateral from its customer with respect to trade accounts receivable. Invoices are generally due 30 days after presentation. Accounts receivable over 30 days are considered past due. No interest is charged on past due accounts. Winland evaluates its allowance for uncollectible accounts on a quarterly basis and reviews any significant customers with delinquent balances to determine future collectability. Winland bases its determinations on legal issues, past history, current financial and credit agency reports, and experience. Winland reserves for accounts deemed to be uncollectible in the quarter in which the determination is made. Management believes these values are estimates and may differ from actual results. Winland believes that, based on past history and credit policies, the net accounts receivable are of good quality. The Company writes off accounts receivable when they are deemed uncollectible and records recoveries of trade receivables previously written off when collected. The Allowance for Doubtful Accounts was $7 at both December 31, 2013 and 2012. | |||||||||
Inventory Valuation | ' | ||||||||
Inventory Valuation: Raw component and finished goods inventories are stated at the lower of cost, using the first-in, first-out (FIFO) method, or market value. Winland estimates excess, slow moving and obsolete reserves for inventory on a quarterly basis based upon order demand and production requirements for its major customers and annual reviews for other customers. Management's estimated reserve for slow moving and obsolete finished goods inventories was $239 and $24 as of December 31, 2013 and 2012, respectively. | |||||||||
Depreciation | ' | ||||||||
Depreciation: Depreciation is computed using the straight-line method based on the estimated useful lives of the various assets, as follows: | |||||||||
Years | |||||||||
Machinery and equipment | 5 – 7 | ||||||||
Data processing equipment | 3 – 7 | ||||||||
Office furniture and equipment | 3 – 7 | ||||||||
Long-lived assets | ' | ||||||||
Long-lived assets: Considerable management judgment is necessary in estimating future cash flows and other factors affecting the valuation of long-lived assets including the operating and macroeconomic factors that may affect them. The Company uses historical financial information, internal plans and projections and industry information in making such estimates. While the Company currently believes the expected cash flows from these long-lived assets exceeds the carrying amount, materially different assumptions regarding future performance and discount rates could result in future impairment losses. Such impairment would adversely affect earnings. No impairment losses were recognized in 2013 or 2012. | |||||||||
Allowance for Rework and Warranty Costs | ' | ||||||||
Allowance for Rework and Warranty Costs: Winland provides a limited warranty for its products for a period of one year, which requires Winland to repair or replace defective product at no cost to the customer or refund the purchase price. Reserves are established based on historical experience and analysis for specific known and potential warranty issues. The reserve reflecting historical experience and potential warranty issues is determined based on experience factors including rate of return by item, average weeks outstanding from production to return, average cost of repair and relation of repair cost to original sales price. Any specific known warranty issues are considered individually. These are analyzed to determine the probability and the amount of financial exposure, and a specific reserve is established. The allowance for rework and warranty costs was $15 at both December 31, 2013 and 2012. The product warranty liability reflects management's best estimate of probable liability under Winland's product warranties and may differ from actual results. | |||||||||
Changes in Winland's warranty liability, which is included in other accrued liabilities on the balance sheets, are approximately as follows: | |||||||||
For the Years Ended December 31, | |||||||||
($ in thousands) | 2013 | 2012 | |||||||
Balance, Beginning | $ | 15 | $ | 13 | |||||
Accruals for products sold | 10 | 20 | |||||||
Expensing of specific warranty items | (10 | ) | (15 | ) | |||||
Change in estimate | - | (3 | ) | ||||||
Balance, Ending | $ | 15 | $ | 15 | |||||
Income taxes | ' | ||||||||
Income taxes: Income taxes are accounted for in accordance with FASB ASC Topic 740 Income Taxes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. | |||||||||
In assessing the realizability of deferred income tax assets, Winland considers whether it is "more likely than not," according to the criteria that some portion or all of the deferred income tax assets will be realized. The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. | |||||||||
Per FASB ASC 740-10-25-5 Winland recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more likely than not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant tax authority. | |||||||||
Fair value of financial instruments | ' | ||||||||
Fair value of financial instruments: The carrying values of cash and cash equivalents, accounts receivable and accounts payable approximate their fair value due to the short-term nature of these instruments. | |||||||||
Income (loss) per common share | ' | ||||||||
Income (loss) per common share: Basic income (loss) per common share is computed by dividing the net income (loss) by the weighted-average number of common shares outstanding during the period. Diluted income (loss) per common share is computed by dividing the net income (loss) by the weighted-average number of common shares outstanding during the period, including potentially dilutive shares such as the options and warrants to purchase shares of common stock at various amounts per share (see Note 5). | |||||||||
For years ended December 31, 2013 and 2012, the diluted loss per share was the same as basic loss per share since the effects of options and warrants would have been anti-dilutive. The diluted share calculation excluded 303,000 and 471,000 shares for the years ended December 31, 2013 and 2012, respectively, as inclusion of these shares would have been anti-dilutive. | |||||||||
Employee stock based compensation plans | ' | ||||||||
Employee stock based compensation plans: At December 31, 2013, Winland had stock-based compensation plans, which are described more fully in Note 5. Winland accounts for these plans under FASB ASC Topic 718, Stock Compensation. | |||||||||
Advertising expense | ' | ||||||||
Advertising expense: Advertising is expensed as incurred and was $7 and $14 for the years ended December 31, 2013 and 2012, respectively. | |||||||||
Research and Development Expense | ' | ||||||||
Research and Development Expense: The Company expenses research and development costs as incurred. Research and development expenses of $902 and $285 were charged to operations during the years ended December 31, 2013 and 2012, respectively. | |||||||||
Subsequent events | ' | ||||||||
Subsequent events: The Company evaluates events occurring after the date of the financial statements for events requiring recording or disclosure in the financial statements. |
Nature_of_Business_and_Signifi2
Nature of Business and Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Nature of Business and Significant Accounting Policies [Abstract] | ' | ||||||||
Estimated Useful Lives of Various Assets | ' | ||||||||
Depreciation is computed using the straight-line method based on the estimated useful lives of the various assets, as follows: | |||||||||
Years | |||||||||
Machinery and equipment | 5 – 7 | ||||||||
Data processing equipment | 3 – 7 | ||||||||
Office furniture and equipment | 3 – 7 | ||||||||
Changes in the Company's Warranty Liability | ' | ||||||||
Changes in Winland's warranty liability, which is included in other accrued liabilities on the balance sheets, are approximately as follows: | |||||||||
For the Years Ended December 31, | |||||||||
($ in thousands) | 2013 | 2012 | |||||||
Balance, Beginning | $ | 15 | $ | 13 | |||||
Accruals for products sold | 10 | 20 | |||||||
Expensing of specific warranty items | (10 | ) | (15 | ) | |||||
Change in estimate | - | (3 | ) | ||||||
Balance, Ending | $ | 15 | $ | 15 |
Inventories_Tables
Inventories (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventories [Abstract] | ' | ||||||||
Components of Inventories | ' | ||||||||
The components of inventories at December 31, 2013 and 2012 were as follows: | |||||||||
31-Dec | 31-Dec | ||||||||
2013 | 2012 | ||||||||
Raw materials | $ | 16 | $ | 114 | |||||
Finished goods | 406 | 770 | |||||||
Total, net | $ | 422 | $ | 884 |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Income Taxes [Abstract] | ' | ||||||||
Statutory income tax rate reconciliation | ' | ||||||||
The statutory income tax rate reconciliation for continuing operations to the effective rate is as follows: | |||||||||
31-Dec | 31-Dec | ||||||||
2013 | 2012 | ||||||||
Statutory U.S. income tax rate | 34 | % | 34 | % | |||||
State benefit, net of federal tax effect | 1 | 4 | |||||||
Change in valuation allowance | (35 | ) | (40 | ) | |||||
Other, including permanent differences | - | 2 | |||||||
Effective income tax benefit rate | - | % | - | % | |||||
Components of deferred tax assets (liabilities) | ' | ||||||||
Deferred tax assets (liabilities) consist of the following components as of: | |||||||||
31-Dec | 31-Dec | ||||||||
2013 | 2012 | ||||||||
Deferred tax assets: | |||||||||
Inventory | $ | 89 | $ | 23 | |||||
Allowance for doubtful accounts | 2 | 2 | |||||||
Non-qualified stock options | 95 | 89 | |||||||
Accrued expenses | 2 | 3 | |||||||
Research credit carryover | 8 | 8 | |||||||
Net operating loss carryforward | 2,584 | 1,733 | |||||||
Other | 14 | 23 | |||||||
Valuation allowance | (2,743 | ) | (1,853 | ) | |||||
51 | 28 | ||||||||
Deferred tax liabilities: | |||||||||
Property and equipment | (19 | ) | (9 | ) | |||||
Prepaid expenses | (32 | ) | (19 | ) | |||||
(51 | ) | (28 | ) | ||||||
Net deferred tax assets | $ | - | $ | - |
Warrants_and_StockBased_Compen1
Warrants and Stock-Based Compensation Plans (Tables) | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||
Warrants and Stock-Based Compensation Plans [Abstract] | ' | ||||||||||||||||||||||
Fair value of stock-based awards weighted-average assumptions | ' | ||||||||||||||||||||||
Winland uses the Black-Scholes option pricing model to estimate the fair value of stock-based awards with the following weighted-average assumptions for the indicated periods. | |||||||||||||||||||||||
31-Dec | 31-Dec | ||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
Expected life, in years | 4 | 4 | |||||||||||||||||||||
Expected volatility | 79.1 | % | 79.1 | % | |||||||||||||||||||
Risk-free interest rate | 0.4 | % | 0.4 | % | |||||||||||||||||||
Dividend yield | 0 | % | 0 | % | |||||||||||||||||||
Stock option activity | ' | ||||||||||||||||||||||
The following table represents stock option activity for the years ended December 31, 2013 and 2012: | |||||||||||||||||||||||
Weighted Average Remaining Contract Life | |||||||||||||||||||||||
Weighted Average Exercise Price | |||||||||||||||||||||||
Number of Shares | Aggregate Intrinsic Value | ||||||||||||||||||||||
Outstanding options at January 1, 2012 | 187,500 | $ | 1.62 | ||||||||||||||||||||
Granted | 305,000 | 0.72 | |||||||||||||||||||||
Forfeited | (24,000 | ) | 3.62 | ||||||||||||||||||||
Outstanding options at December 31, 2012 | 468,500 | $ | 0.93 | 8.2 | $ | 42 | |||||||||||||||||
Exercisable at December 31, 2012 | 283,500 | $ | 0.99 | 7.1 | $ | 42 | |||||||||||||||||
Outstanding options at January 1, 2013 | |||||||||||||||||||||||
Granted | 285,000 | 0.66 | |||||||||||||||||||||
Forfeited | (453,000 | ) | 0.86 | ||||||||||||||||||||
Outstanding options at December 31, 2013 | 300,500 | $ | 0.78 | 6.4 | $ | 6 | |||||||||||||||||
Exercisable at December 31, 2013 | 220,500 | $ | 0.81 | 5.4 | $ | 6 | |||||||||||||||||
Summary of stock options outstanding | ' | ||||||||||||||||||||||
The following table summarizes information about stock options outstanding at December 31, 2013: | |||||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||||
Weighted-Average Remaining Contractual Life (Years) | |||||||||||||||||||||||
Range of Exercise Prices | Weighted-Average Exercise Price | Weighted-Average Exercise Price | |||||||||||||||||||||
Number of Shares | Number of Shares | ||||||||||||||||||||||
$ | 0.448 - $0.896 | 273,000 | 6.6 | $ | 0.64 | 193,000 | $ | 0.63 | |||||||||||||||
$ | 0.896 - $1.792 | 16,500 | 4.3 | 1.74 | 16,500 | 1.74 | |||||||||||||||||
$ | 1.792 - $2.240 | 5,500 | 4 | 2.23 | 5,500 | 2.23 | |||||||||||||||||
$ | 2.240 - $3.584 | 5,500 | 3.4 | 3.25 | 5,500 | 3.25 | |||||||||||||||||
300,500 | 6.4 | $ | 0.78 | 220,500 | $ | 0.81 |
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Discontinued Operations [Abstract] | ' | ||||||||
Statements of Operations for Discontinued Operations | ' | ||||||||
Amounts included in discontinued operations for the years ended December 31, 2013 and 2012 were as follows: | |||||||||
Year ended December 31, | |||||||||
(in thousands) | 2013 | 2012 | |||||||
Net sales | $ | - | $ | - | |||||
Gross profit (loss) | - | - | |||||||
Income from discontinued operations (1) | - | 655 | |||||||
(1) 2012 includes gain on sale of land and building of $506 |
Major_Customers_Tables
Major Customers (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Major Customers [Abstract] | ' | ||||||||
Customer Concentration | ' | ||||||||
Winland had customers which accounted for more than 10 percent of net sales and accounts receivable for the years ended December 31, 2013 and 2012, as follows: | |||||||||
2013 | 2012 | ||||||||
Sales percentage: | |||||||||
Customer A | 50 | % | 52 | % | |||||
Customer B | 12 | % | 10 | % | |||||
Accounts receivable percentage at December 31: | |||||||||
Customer A | 55 | % | 56 | % | |||||
Customer B | 21 | % | 16 | % |
Severance_Expense_Tables
Severance Expense (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Severance Expense [Abstract] | ' | ||||||||||||||||
Employee Severance Expense Payable | ' | ||||||||||||||||
The following table provides financial information on the employee severance expense payable at December 31, 2013 and 2012. | |||||||||||||||||
31-Dec-11 | Net Additions | Payments | 31-Dec-12 | ||||||||||||||
Employee Severance Expense | $ | 43 | $ | - | $ | (43 | ) | $ | - | ||||||||
31-Dec-12 | Net Additions | Payments | 31-Dec-13 | ||||||||||||||
Employee Severance Expense | $ | - | $ | 313 | $ | (208 | ) | $ | 105 |
Nature_of_Business_and_Signifi3
Nature of Business and Significant Accounting Policies (Details) (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Nature of business [Abstract] | ' | ' |
Ratio of branded and trademarked products to total revenue (in hundredths) | 100.00% | 100.00% |
Allowance for Doubtful Accounts [Abstract] | ' | ' |
Period when invoices are due | '30 days | ' |
Number of days accounts receivable is considered past due | '30 days | ' |
Accounts receivable, allowance for doubtful accounts | $7 | $7 |
Inventory Valuation [Abstract] | ' | ' |
Estimated reserve for slow moving and obsolete finished goods inventories | 239 | 24 |
Long-lived assets [Abstract] | ' | ' |
Impairment losses on long-lived assets | 0 | 0 |
Allowance for Rework and Warranty Costs [Abstract] | ' | ' |
Time period for limited warranty (in years) | '1 | ' |
Changes in warranty liability [Roll Forward] | ' | ' |
Balance, Beginning | 15 | 13 |
Accrual for products sold | 10 | 20 |
Expensing of specific warranty items | -10 | -15 |
Change in estimate | 0 | -3 |
Balance, Ending | 15 | 15 |
Income Taxes [Abstract] | ' | ' |
Relevant tax authority (in hundredths) | 50.00% | ' |
Advertising expense [Abstract] | ' | ' |
Advertising expense | 7 | 14 |
Research and Development Expense [Abstract] | ' | ' |
Research and development expenses | $902 | $285 |
Options and Warrants [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Anti-dilutive shares excluded from weighted average shares (in shares) | 303,000 | 471,000 |
Machinery and Equipment [Member] | Minimum [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Useful lives of various assets | '5 years | ' |
Machinery and Equipment [Member] | Maximum [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Useful lives of various assets | '7 years | ' |
Data Processing Equipment [Member] | Minimum [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Useful lives of various assets | '3 years | ' |
Data Processing Equipment [Member] | Maximum [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Useful lives of various assets | '7 years | ' |
Office Furniture and Equipment [Member] | Minimum [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Useful lives of various assets | '3 years | ' |
Office Furniture and Equipment [Member] | Maximum [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Useful lives of various assets | '7 years | ' |
Inventories_Details
Inventories (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Components of inventories [Abstract] | ' | ' |
Raw materials | $16 | $114 |
Finished goods | 406 | 770 |
Total, net | 366 | 884 |
Long-term inventories, net | $56 | $0 |
Deferred_Revenue_Details
Deferred Revenue (Details) (USD $) | 12 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 |
Land Improvements [Member] | Building [Member] | ||
Deferred Revenue Arrangement [Line Items] | ' | ' | ' |
Fair value of land improvements | ' | $270 | ' |
Useful Life | ' | ' | '39 years |
Deferred revenue recognized | $106 | ' | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Statutory income tax rate reconciliation [Abstract] | ' | ' |
Statutory U.S. income tax rate (in hundredths) | 34.00% | 34.00% |
State benefit, net of federal tax effect (in hundredths) | 1.00% | 4.00% |
Change in valuation allowance (in hundredths) | -35.00% | -40.00% |
Other, including permanent differences (in hundredths) | 0.00% | 2.00% |
Effective income tax benefit rate (in hundredths) | 0.00% | 0.00% |
Deferred tax assets [Abstract] | ' | ' |
Inventory | $89 | $23 |
Allowance for doubtful accounts | 2 | 2 |
Non-qualified stock options | 95 | 89 |
Accrued expenses | 2 | 3 |
Research credit carryover | 8 | 8 |
Net operating loss carryforward | 2,584 | 1,733 |
Other | 14 | 23 |
Valuation allowance | -2,743 | -1,853 |
Deferred tax assets, net of valuation allowance | 51 | 28 |
Deferred tax liabilities [Abstract] | ' | ' |
Property and equipment | -19 | -9 |
Prepaid expenses | -32 | -19 |
Deferred tax liabilities, gross | -51 | -28 |
Net deferred tax assets | 0 | 0 |
Increase (decrease) in valuation allowance | 890 | -36 |
Estimated annualized effective tax benefit rate (in hundredths) | 0.00% | 0.00% |
Income tax expense | 0 | 0 |
Pre-tax loss from continuing operations | 2,615 | 634 |
Relevant tax authority (in hundredths) | 50.00% | ' |
Income tax examination years settled by state | '2010 through 2013 | ' |
Interest or penalties related to uncertain tax positions | 0 | 0 |
Net operating loss carryforwards for federal purposes | 6,712 | ' |
Net operating loss carryforwards for state income taxes | 4,660 | ' |
Operating loss carryforwards, expiration dates | 31-Dec-22 | ' |
State research and development tax credit carryforwards | $12 | ' |
Tax credit carryforward, expiration date | 31-Dec-22 | ' |
Warrants_and_StockBased_Compen2
Warrants and Stock-Based Compensation Plans (Details) (USD $) | 12 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | 31-May-13 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
Plan | 2013 Equity Incentive Plan [Member] | 2013 Equity Incentive Plan [Member] | 2013 Equity Incentive Plan [Member] | 2008 Equity Incentive Plan [Member] | 2005 Equity Incentive Plan [Member] | |||
Incentive Stock Options [Member] | ||||||||
Warrants [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants outstanding (in shares) | 2,500 | ' | ' | ' | ' | ' | ' | ' |
Exercise price of warrants (in dollars per share) | $4.01 | ' | ' | ' | ' | ' | ' | ' |
Stock option plans [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' |
Number of equity-based compensation plan | 1 | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Shares authorized for issuance (in shares) | ' | ' | ' | ' | 350,000 | ' | ' | ' |
Unvested stock options outstanding (in shares) | ' | ' | ' | ' | ' | 30,000 | ' | ' |
Vesting period of stock options | ' | ' | ' | '5 years | ' | ' | ' | ' |
Contractual life of stock options | ' | ' | ' | '10 years | ' | ' | ' | ' |
Stock options outstanding (in shares) | 300,500 | 468,500 | 187,500 | ' | ' | ' | 259,500 | 11,000 |
Stock options vested (in shares) | ' | ' | ' | ' | ' | ' | 209,500 | 11,000 |
Fair value of stock-based awards, weighted-average assumptions [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' |
Expected life, in years | '4 years | '4 years | ' | ' | ' | ' | ' | ' |
Expected stock volatility (in hundredths) | 79.10% | 79.10% | ' | ' | ' | ' | ' | ' |
Risk-free interest rate (in hundredths) | 0.40% | 0.40% | ' | ' | ' | ' | ' | ' |
Dividend yield (in hundredths) | 0.00% | 0.00% | ' | ' | ' | ' | ' | ' |
Warrants_and_StockBased_Compen3
Warrants and Stock-Based Compensation Plans, Stock Option Activity (Details) (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Warrants and Stock-Based Compensation Plans [Abstract] | ' | ' |
Options exercised (in shares) | 0 | 0 |
Number of Shares [Roll Forward] | ' | ' |
Outstanding options, beginning balance (in shares) | 468,500 | 187,500 |
Granted (in shares) | 285,000 | 305,000 |
Forfeited (in shares) | -453,000 | -24,000 |
Outstanding options, ending balance (in shares) | 300,500 | 468,500 |
Exercisable (in shares) | 220,500 | 283,500 |
Weighted Average Exercise Price [Roll Forward] | ' | ' |
Beginning Balance (in dollars per share) | $0.93 | $1.62 |
Granted (in dollars per share) | $0.66 | $0.72 |
Forfeited (in dollars per share) | $0.86 | $3.62 |
Ending Balance (in dollars per share) | $0.78 | $0.93 |
Exercisable (in dollars per share) | $0.81 | $0.99 |
Outstanding options, Weighted Average Remaining Contract Life | '6 years 4 months 24 days | '8 years 2 months 12 days |
Exercisable, Weighted Average Remaining Contract Life | '5 years 4 months 24 days | '7 years 1 month 6 days |
Options outstanding, Aggregate Intrinsic Value | $6 | $42 |
Exercisable, Aggregate Intrinsic Value | 6 | 42 |
Weighted average grant date fair values (in dollars per share) | $0.41 | $0.41 |
Fair value of shares vested | 0 | 38 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Options Outstanding, Number of Shares (in shares) | 300,500 | ' |
Options Outstanding, Weighted-Average Remaining Contractual Life (Years) | '6 years 4 months 24 days | ' |
Options Outstanding, Weighted-Average Exercise Price (in dollars per share) | $0.78 | ' |
Options Exercisable, Number of Shares (in shares) | 220,500 | ' |
Options Exercisable, Weighted-Average Exercise Price (in dollars per share) | $0.81 | ' |
Unrecognized compensation cost related to share-based payments | $19 | ' |
Weighted-average period adjusted for any future changes in estimated forfeitures | '2 years 2 months 12 days | ' |
$0.448 - $0.896 [Member] | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Range of Exercise Prices, lower limit (in dollars per share) | $0.45 | ' |
Range of Exercise Prices, upper limit (in dollars per share) | $0.90 | ' |
Options Outstanding, Number of Shares (in shares) | 273,000 | ' |
Options Outstanding, Weighted-Average Remaining Contractual Life (Years) | '6 years 7 months 6 days | ' |
Options Outstanding, Weighted-Average Exercise Price (in dollars per share) | $0.64 | ' |
Options Exercisable, Number of Shares (in shares) | 193,000 | ' |
Options Exercisable, Weighted-Average Exercise Price (in dollars per share) | $0.63 | ' |
$0.896 - $1.792 [Member] | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Range of Exercise Prices, lower limit (in dollars per share) | $0.90 | ' |
Range of Exercise Prices, upper limit (in dollars per share) | $1.79 | ' |
Options Outstanding, Number of Shares (in shares) | 16,500 | ' |
Options Outstanding, Weighted-Average Remaining Contractual Life (Years) | '4 years 3 months 18 days | ' |
Options Outstanding, Weighted-Average Exercise Price (in dollars per share) | $1.74 | ' |
Options Exercisable, Number of Shares (in shares) | 16,500 | ' |
Options Exercisable, Weighted-Average Exercise Price (in dollars per share) | $1.74 | ' |
$1.792 - $2.240 [Member] | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Range of Exercise Prices, lower limit (in dollars per share) | $1.79 | ' |
Range of Exercise Prices, upper limit (in dollars per share) | $2.24 | ' |
Options Outstanding, Number of Shares (in shares) | 5,500 | ' |
Options Outstanding, Weighted-Average Remaining Contractual Life (Years) | '4 years | ' |
Options Outstanding, Weighted-Average Exercise Price (in dollars per share) | $2.23 | ' |
Options Exercisable, Number of Shares (in shares) | 5,500 | ' |
Options Exercisable, Weighted-Average Exercise Price (in dollars per share) | $2.23 | ' |
$2.240 - $3.584 [Member] | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Range of Exercise Prices, lower limit (in dollars per share) | $2.24 | ' |
Range of Exercise Prices, upper limit (in dollars per share) | $3.58 | ' |
Options Outstanding, Number of Shares (in shares) | 5,500 | ' |
Options Outstanding, Weighted-Average Remaining Contractual Life (Years) | '3 years 4 months 24 days | ' |
Options Outstanding, Weighted-Average Exercise Price (in dollars per share) | $3.25 | ' |
Options Exercisable, Number of Shares (in shares) | 5,500 | ' |
Options Exercisable, Weighted-Average Exercise Price (in dollars per share) | $3.25 | ' |
Discontinued_Operations_Detail
Discontinued Operations (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Nov. 27, 2012 | ||
sqft | ||||||
Discontinued Operations [Abstract] | ' | ' | ' | ' | ||
Expenses related to the sale | $9 | ' | ' | ' | ||
Annual rent | ' | ' | 305 | ' | ||
Rent per square foot | 5.25 | ' | 5.25 | ' | ||
Percentage increase provided by lease agreement (in hundredths) | ' | ' | 2.50% | ' | ||
Statements of operations for discontinued operations [Abstract] | ' | ' | ' | ' | ||
Net sales | 0 | 0 | ' | ' | ||
Gross profit (loss) | 0 | 0 | ' | ' | ||
Income from discontinued operations | 0 | [1] | 655 | [1] | ' | ' |
Agreed purchase price | ' | ' | ' | 2,650 | ||
Building and land, carrying cost | 2,135 | ' | ' | ' | ||
Gain (loss) from sale of building and land sold | 506 | ' | ' | ' | ||
Rental revenue | ' | 261 | ' | ' | ||
Reduction in rental revenue | ' | 218 | ' | ' | ||
Deferred revenue recognized | ' | 106 | ' | ' | ||
Square Footage of Building Leased | 1,900 | ' | ' | ' | ||
Income tax expense (benefit) from discontinued operations | $0 | $0 | ' | ' | ||
[1] | 2012 includes gain on sale of land and building of $506 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
sqft | ||
Loss Contingencies [Line Items] | ' | ' |
General and administrative expense | $1,540 | $762 |
Square footage of building leased | 1,900 | ' |
Rent expense | 102 | 11 |
100 North Sixth Street, Suite 604A, Minneapolis, MN [Member] | ' | ' |
Loss Contingencies [Line Items] | ' | ' |
Operating lease term | '12 months | ' |
100 North Sixth Street, Suite 604A, Minneapolis, MN [Member] | Cancellation expense [Member] | ' | ' |
Loss Contingencies [Line Items] | ' | ' |
General and administrative expense | 44 | ' |
1950 Excel Drive, Mankato, MN [Member] | ' | ' |
Loss Contingencies [Line Items] | ' | ' |
Operating lease term | '12 months | ' |
Square footage of building leased | 1,924 | 1,924 |
1950 Excel Drive, Mankato, MN [Member] | Cancellation expense [Member] | ' | ' |
Loss Contingencies [Line Items] | ' | ' |
General and administrative expense | $0 | ' |
Employee_Benefit_Plans_Details
Employee Benefit Plans (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Employee Benefit Plans [Abstract] | ' | ' |
Health savings account plan, contributions by Employer | $18 | $13 |
Major_Customers_Details
Major Customers (Details) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Concentration Risk [Line Items] | ' | ' |
Percentage or net sales considered for major customer (in hundredths) | 10.00% | ' |
Customer A [Member] | Sales percentage [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration risk, percentage (in hundredths) | 50.00% | 52.00% |
Customer A [Member] | Accounts receivable percentage [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration risk, percentage (in hundredths) | 55.00% | 56.00% |
Customer B [Member] | Sales percentage [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration risk, percentage (in hundredths) | 12.00% | 10.00% |
Customer B [Member] | Accounts receivable percentage [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration risk, percentage (in hundredths) | 21.00% | 16.00% |
Shareholder_Rights_Plan_Detail
Shareholder Rights Plan (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Shareholder Rights Plan [Abstract] | ' |
Percentage of outstanding common stock acquired by persons or groups beneficially (in hundredths) | 5.00% |
Minimum percentage owned for ownership change | 50.00% |
Period within which lowest percentage owned by shareholders | '3 years |
Number of preferred share purchase right carry by each common stock | 1 |
Conversion rate of preferred stock each right is entitled (in hundredths) | 0.00% |
Exercise price of rights (in dollars per share) | $14 |
Period within which rights will not be exercisable | '10 days |
Minimum percentage of outstanding common stock obtaining beneficial ownership (in hundredths) | 4.99% |
Shareholder rights plan expiration date | 10-Mar-19 |
Redeemable price of shareholder rights plan (in dollars per share) | $0.00 |
Previous shareholder rights plan expiration date | 9-Dec-13 |
Severance_Expense_Details
Severance Expense (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 15, 2013 | Mar. 31, 2012 | Dec. 31, 2010 | Nov. 15, 2013 | Dec. 27, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Vice President [Member] | All Executives as a Group [Member] | All Executives as a Group [Member] | Employee Severance [Member] | Employee Severance [Member] | ||
All Executives as a Group [Member] | All Executives as a Group [Member] | |||||||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Salary paid to executives per separation agreements | ' | ' | $200 | $43 | $358 | $34 | $79 | ' | ' | ' |
Severance expense payable to be paid in first five months of next fiscal year | 130 | 60 | ' | ' | ' | ' | ' | 105 | ' | ' |
Employee Severance Expense Payable [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning Balance | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 43 |
Net additions | ' | ' | ' | ' | ' | ' | ' | ' | 313 | 0 |
Payments | ' | ' | ' | ' | ' | ' | ' | ' | -208 | -43 |
Ending Balance | ' | ' | ' | ' | ' | ' | ' | ' | $105 | $0 |