Lendway (LDWY) 10-Q 29 Oct 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Oct. 26, 2015
Document and Entity Information
Entity Registrant Name	INSIGNIA SYSTEMS INC/MN
Entity Central Index Key	875,355
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		11,638,403
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3

BALANCE SHEETS

BALANCE SHEETS - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Current Assets:
Cash and cash equivalents	$ 9,095,000	$ 7,237,000
Accounts receivable, net	7,054,000	7,492,000
Available for sale investments	9,910,000	9,698,000
Inventories	468,000	523,000
Deferred tax assets		52,000
Income tax receivable	10,000	287,000
Prepaid expenses and other	597,000	715,000
Total Current Assets	27,134,000	26,004,000
Other Assets:
Property and equipment, net	1,120,000	1,467,000
Other, net	2,689,000	3,056,000
Total Assets	30,943,000	30,527,000
Current Liabilities:
Accounts payable	2,709,000	3,088,000
Accrued liabilities:
Compensation	1,376,000	1,199,000
Other	1,040,000	719,000
Deferred tax liabilities	67,000
Income tax payable	237,000	82,000
Deferred revenue	628,000	172,000
Total Current Liabilities	6,057,000	5,260,000
Long-Term Liabilities:
Deferred tax liabilities	222,000	222,000
Accrued income taxes	486,000	486,000
Total Long-Term Liabilities	$ 708,000	$ 708,000
Commitments and Contingencies
Shareholders' Equity:
Common stock, par value $.01: Authorized shares - 40,000,000 Issued shares - 11,777,000 at September 30, 2015 and 12,216,000 at December 31, 2014 Outstanding shares - 11,687,000 at September 30, 2015 and 12,191,000 at December 31, 2014	$ 117,000	$ 122,000
Additional paid-in capital	17,887,000	19,177,000
Retained earnings	6,178,000	5,271,000
Accumulated other comprehensive loss	(4,000)	(11,000)
Total Shareholders' Equity	24,178,000	24,559,000
Total Liabilities and Shareholders' Equity	$ 30,943,000	$ 30,527,000

BALANCE SHEETS (Parenthetical)

BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2015	Dec. 31, 2014
Balance Sheets
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	40,000,000	40,000,000
Common stock, shares issued	11,777,000	12,216,000
Common stock, shares outstanding	11,687,000	12,191,000

STATEMENTS OF COMPREHENSIVE INC

STATEMENTS OF COMPREHENSIVE INCOME - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Statements of Comprehensive Income
Services revenues	$ 7,098,000	$ 7,104,000	$ 19,356,000	$ 18,902,000
Products revenues	450,000	416,000	1,406,000	1,365,000
Total Net Sales	7,548,000	7,520,000	20,762,000	20,267,000
Cost of services	3,734,000	3,494,000	10,494,000	10,048,000
Cost of goods sold	315,000	317,000	981,000	924,000
Total Cost of Sales	4,049,000	3,811,000	11,475,000	10,972,000
Gross Profit	3,499,000	3,709,000	9,287,000	9,295,000
Operating Expenses:
Selling	962,000	1,433,000	3,451,000	4,160,000
Marketing	468,000	416,000	1,254,000	978,000
General and administrative	1,145,000	1,022,000	3,110,000	3,040,000
Total Operating Expenses	2,575,000	2,871,000	7,815,000	8,178,000
Operating Income	924,000	838,000	1,472,000	1,117,000
Other income	19,000	13,000	56,000	25,000
Income Before Taxes	943,000	851,000	1,528,000	1,142,000
Income tax expense	382,000	427,000	621,000	533,000
Net Income	561,000	424,000	907,000	609,000
Other comprehensive income, net of tax:
Unrealized gain (loss) on available for sale securities		(4,000)	7,000	(4,000)
Comprehensive Income	$ 561,000	$ 420,000	$ 914,000	$ 605,000
Net income per share:
Basic	$ 0.05	$ 0.03	$ 0.07	$ 0.05
Diluted	$ 0.05	$ 0.03	$ 0.07	$ 0.05
Shares used in calculation of net income per share:
Basic	12,107,000	12,593,000	12,177,000	12,767,000
Diluted	12,241,000	12,824,000	12,351,000	13,003,000

STATEMENTS OF CASH FLOWS

STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Operating Activities:
Net income	$ 907,000	$ 609,000
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	851,000	824,000
Change in allowance for doubtful accounts	(19,000)	34,000
Deferred income tax expense	119,000
Stock-based compensation	267,000	300,000
Gain on sale of property and equipment	(25,000)	(14,000)
Changes in operating assets and liabilities:
Accounts receivable	457,000	(3,379,000)
Inventories	55,000	(89,000)
Income tax receivable	277,000	(1,000)
Prepaid expenses and other	118,000	(526,000)
Accounts payable	(379,000)	86,000
Accrued liabilities	498,000	(270,000)
Income tax payable	159,000	236,000
Excess tax benefit from stock options exercises	(4,000)	(11,000)
Deferred revenue	456,000	441,000
Net cash provided by (used in) operating activities	3,737,000	(1,760,000)
Investing Activities:
Purchases of property and equipment	(137,000)	(319,000)
Acquisition of selling rights and other		(542,000)
Purchases of investments	(4,513,000)	(10,255,000)
Proceeds from sale/maturity of investments	4,308,000	955,000
Proceeds received from sale of property and equipment	25,000	14,000
Net cash used in investing activities	(317,000)	(10,147,000)
Financing Activities:
Proceeds from issuance of common stock, net	48,000	199,000
Excess tax benefit from stock options exercises	4,000	11,000
Repurchase of common stock, net	(1,614,000)	(1,886,000)
Net cash used in financing activities	(1,562,000)	(1,676,000)
Increase (decrease) in cash and cash equivalents	1,858,000	(13,583,000)
Cash and cash equivalents at beginning of period	7,237,000	21,763,000
Cash and cash equivalents at end of period	9,095,000	8,180,000
Supplemental disclosures for cash flow information:
Cash paid during the year for income taxes	$ 243,000	$ 377,000

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2015
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	1. Summary of Significant Accounting Policies. Description of Business . Insignia Systems, Inc. (the “Company”) markets in-store advertising products, programs and services to consumer packaged goods manufacturers and retailers. The Company’s products include the Insignia Point-of-Purchase Services (POPS) in-store advertising program, thermal sign card supplies for the Company’s Impulse Retail systems, laser printable cardstock and label supplies. Additionally, in October 2014, the Company announced a new product, The Like Machine TM , which is an in-store consumer approval device. The Company pays royalties pursuant to a licensing agreement to sell this new product, which is currently in the pilot phase of its launch. Basis of Presentation . Financial statements for the interim periods included herein are unaudited; however, they contain all adjustments, including normal recurring accruals, which in the opinion of management, are necessary to present fairly the financial position of the Company at September 30, 2015, its results of operations for the three and nine months ended September 30, 2015 and 2014, and its cash flows for the nine months ended September 30, 2015 and 2014. Results of operations for the periods presented are not necessarily indicative of the results to be expected for the full year. The financial statements do not include certain footnote disclosures and financial information normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America and, therefore, should be read in conjunction with the financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. The Summary of Significant Accounting Policies in the Company’s 2014 Annual Report on Form 10-K describes the Company’s accounting policies. Inventories . Inventories are primarily composed of parts and supplies for Impulse machine, sign cards, and rollstock. Inventory is valued at the lower of cost or market using the first-in, first-out (FIFO) method, and consisted of the following: September 30, December 31, 2015 2014 Raw materials $ $ Work-in-process Finished goods $ $ Property and Equipment . Property and equipment consisted of the following: September 30, December 31, 2015 2014 Property and Equipment: Production tooling, machinery and equipment $ $ Office furniture and fixtures Computer equipment and software Web site Leasehold improvements Construction in-progress Accumulated depreciation and amortization ) ) Net Property and Equipment $ $ Depreciation expense was approximately $160,000 and $482,000 in the three and nine months ended September 30, 2015, respectively, and $159,000 and $471,000 in the three and nine months ended September 30, 2014, respectively. Stock-Based Compensation . The Company measures and recognizes compensation expense for all stock-based awards at fair value using the Black-Scholes option pricing model to determine the weighted average fair value of options and employee stock purchase plan rights. The Company recognizes stock-based compensation expense on a graded-attribution method over the requisite service period of the award. The Company issued 200,000 stock option awards, with a weighted average exercise price of $2.82, during the nine months ended September 30, 2015, and the Company estimated the fair value of these awards using the following weighted average assumptions: expected life of 3.4 years, expected volatility of 45%, dividend yield of 0% and risk-free interest rate of 1.18%. The Company estimated the fair value of stock-based rights granted during the nine months ended September 30, 2015, under the Company’s employee stock purchase plan using the following weighted average assumptions: expected life of 1.0 years, expected volatility of 37%, dividend yield of 0% and risk-free interest rate of 0.25%. The Company issued 99,000 restricted stock units during the nine months ended September 30, 2015. The units were assigned a weighted average value of $2.71 per share, based on the stock price on the date of the grant, and vest over a weighted average of 2.3 years. The Company issued 25,000 restricted stock units during the nine months ended September 30, 2014. The units were assigned a value of $3.03 per share, based on the stock price on the date of the grant, and vest over three years. In June 2015, equity grants were made by the Company to the Board of Directors, pursuant to the 2013 Omnibus Stock and Incentive Plan, as amended, in the form of fully vested shares of common stock. A total of 37,233 shares were granted to the Board of Directors. The shares were assigned a value of $2.82 per share, based on the stock price on the date of grant. Total stock-based compensation (benefit) expense recorded for the three and nine months ended September 30, 2015 was ($11,000) and $267,000, respectively, and for the three and nine months ended September 30, 2014 was $83,000 and $300,000, respectively. The benefit recorded for the three months ended September 30, 2015 was due to stock option and restricted stock unit forfeitures, primarily related to the resignation of the Company’s Chief Executive Officer in July 2015. During the three and nine months ended September 30, 2015, there were approximately 80,000 shares and 113,000 shares issued pursuant to stock option exercises, for which the Company received proceeds of $0 and $2,000, respectively. During the three and nine months ended September 30, 2014, there were approximately 26,000 and 95,000 shares issued pursuant to stock option exercises, for which the Company received proceeds of $24,000 and $125,000, respectively. A portion of the stock option exercises in the three and nine months ended September 30, 2015 and 2014 were done on a cashless basis. Net Income per Share . Basic net income per share is computed by dividing net income by the weighted average shares outstanding and excludes any potential dilutive effects of outstanding stock options and restricted stock units. Diluted net income per share gives effect to all diluted potential common shares outstanding during the period. Options to purchase approximately 660,000 and 653,000 shares of common stock with a weighted average exercise price of $3.64 and $3.80, respectively, were outstanding at September 30, 2015 and were not included in the computation of common stock equivalents for the three and nine months ended September 30, 2015 because their exercise prices were higher than the average fair market value of the common shares during the reporting period. Options to purchase approximately 695,000 and 578,000 shares of common stock with a weighted average exercise price of $4.20 and $4.27, respectively, were outstanding at September 30, 2014 and were not included in the computation of common stock equivalents for the three and nine months ended September 30, 2014 because their exercise prices were higher than the average fair market value of the common shares during the reporting period. Weighted average common shares outstanding for the three and nine months ended September 30, 2015 and 2014 were as follows: Three Months Ended Nine Months Ended September 30 September 30 2015 2014 2015 2014 Denominator for basic net income per share - weighted average shares Effect of dilutive securities: Stock options and restricted stock units Denominator for diluted net income per share - weighted average shares

Investments

Investments	9 Months Ended
	Sep. 30, 2015
Investments.
Investments	2. Investments . The Company carries certain investments intended to increase the yield on available cash balances. The Company has classified all investments as current assets, as they are available to fund current operations. These investments are in debt securities, with an average maturity of approximately one year, and are classified as available-for-sale. These investments are accounted for in accordance with Accounting Standards Codification (“ASC”) 320-10, “Investments — Debt and Equity Securities.” At September 30, 2015, the Company’s investment balances consisted solely of available-for-sale securities and were carried at fair value in accordance with ASC 820-10. As of September 30, 2015, all available-for-sale securities were valued using Level 2 inputs, in accordance with ASC 820-10.

Line of Credit

Line of Credit	9 Months Ended
	Sep. 30, 2015
Line of Credit
Line of Credit	3. Line of Credit . The Company maintains a line of credit, which is collateralized by its investment balances. The total availability under the line of credit is $7,500,000 and outstanding amounts would bear interest at the 30-day LIBOR rate plus 2% (effective rate of 2.19% as of September 30, 2015). There were no amounts outstanding on this line of credit at any point during the nine months ended September 30, 2015.

Selling Arrangement

Selling Arrangement	9 Months Ended
	Sep. 30, 2015
Selling Arrangement
Selling Arrangement	4. Selling Arrangement. In February 2011, the Company paid News America Marketing In-Store, LLC (“News America”) $4,000,000 in exchange for a 10-year arrangement to sell signs with price into News America’s network of retailers as News America’s exclusive agent. The $4,000,000 is being amortized on a straight-line basis over the 10-year term of the arrangement. Amortization expense, which was $100,000 and $300,000 in both the three and nine months ended September 30, 2015 and 2014, respectively, and is expected to be $400,000 per year over the next five years, is recorded within cost of services in the Company’s statements of comprehensive income. The net carrying amount of the selling arrangement is recorded within other assets on the Company’s condensed balance sheets.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2015
Income Taxes
Income Taxes	5. Income Taxes. For the three and nine months ended September 30, 2015, the Company recorded income tax expense of $382,000 and $621,000, or 40.5% and 40.6% of income before taxes, respectively. For the three and nine months ended September 30, 2014, the Company recorded income tax expense of $427,000 and $533,000, or 50.2% and 46.7% of income before taxes, respectively. The income tax provision for the three and nine months ended September 30, 2015 and 2014 is comprised of federal and state taxes. The primary differences between the Company’s September 30, 2015 and 2014 effective tax rates and the statutory federal rate are expenses related to stock-based compensation and nondeductible meals and entertainment. The Company reassesses its effective rate each reporting period and adjusts the annual effective rate if deemed necessary, based on projected annual taxable income. As of September 30, 2015 and December 31, 2014, the Company has unrecognized tax benefits totaling $486,000, including interest, which relate to state nexus issues. The amount of the unrecognized tax benefits, if recognized, that would affect the effective income tax rates of future periods is $486,000. Due to the current statute of limitations regarding the unrecognized tax benefits, the unrecognized tax benefits and associated interest is not expected to change significantly in 2015.

Concentrations

Concentrations	9 Months Ended
	Sep. 30, 2015
Concentrations
Concentrations	6. Concentrations. During the nine months ended September 30, 2015, one customer accounted for 35% of the Company’s total net sales. During the nine months ended September 30, 2014, two customers accounted for 30% and 12% of the Company’s total net sales. At September 30, 2015, one customer accounted for 44% of the Company’s total accounts receivable. At December 31, 2014, one customer accounted for 48% of the Company’s total accounts receivable. The loss of a major customer could adversely affect operating results. Additionally, the loss of a major retailer from the Company’s retail network could adversely affect operating results.

Share Repurchase

Share Repurchase	9 Months Ended
	Sep. 30, 2015
Share Repurchase
Share Repurchase	7. Share Repurchases. On December 3, 2013, the Board of Directors authorized the repurchase of up to $5,000,000 of the Company’s common stock on or before December 3, 2015. The plan allows the repurchases to be made in open market or privately negotiated transactions. The plan does not obligate the Company to repurchase any particular number of shares, and may be suspended at any time at the Company’s discretion. For the three and nine months ended September 30, 2015, the Company repurchased approximately 577,000 and 609,000 shares, respectively, at a total cost of $1,515,000 and $1,614,000, respectively. For the three and nine months ended September 30, 2014, the Company repurchased approximately 455,000 and 602,000 shares, at a total cost of $1,431,000 and $1,886,000, respectively.

Severance Accrual

Severance Accrual	9 Months Ended
	Sep. 30, 2015
Severance Accrual
Severance Accrual	8. Severance Accrual. During the three months ended September 30, 2015, the Company recorded a net charge of $223,000 to general and administrative expenses relating to the resignation of the Company’s Chief Executive Officer. This net charge consisted of severance costs of $350,000, reduced by the effect of forfeitures of previously expensed unvested stock options and restricted stock unit awards and a reduction to the bonus accrual that together totaled $127,000. A severance accrual of $350,000 was included in accrued compensation on the Company’s condensed balance sheet as of September 30, 2015.

Recently Issued Accounting Pron

Recently Issued Accounting Pronouncements	9 Months Ended
	Sep. 30, 2015
Recently Issued Accounting Pronouncements
Recently Issued Accounting Pronouncements	9. Recently Issued Accounting Pronouncements. In May 2014, the Financial Accounting Standards Board (FASB) issued guidance creating Accounting Standards Codification (“ASC”) Section 606, “Revenue from Contracts with Customers”. The new section will replace Section 605, “Revenue Recognition” and creates modifications to various other revenue accounting standards for specialized transactions and industries. The updated guidance is effective for annual reporting periods beginning on or after December 15, 2017, and interim periods within those annual periods. The Company plans to adopt the new provisions of this accounting standard at the beginning of fiscal year 2018. The Company will further study the implications of this statement in order to evaluate the expected impact on the financial statements. In July 2015, FASB issued Accounting Standards Update (“ASU”) 2015-11, Inventory (Topic 330) Related to Simplifying the Measurement of Inventory applies to all inventory except inventory that is measured using last-in, first-out (LIFO) or the retail inventory method. Inventory measured using first-in, first-out (FIFO) or average cost is covered by the new amendments. Inventory within the scope of the new guidance should be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured using LIFO or the retail inventory method. The amendments will take effect for public business entities for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The new guidance should be applied prospectively, and earlier application is permitted as of the beginning of an interim or annual reporting period. The Company is evaluating the impact of the standard on the consolidated financial statements.

Summary of Significant Accoun15

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2015
Summary of Significant Accounting Policies
Description Of Business	Description of Business . Insignia Systems, Inc. (the “Company”) markets in-store advertising products, programs and services to consumer packaged goods manufacturers and retailers. The Company’s products include the Insignia Point-of-Purchase Services (POPS) in-store advertising program, thermal sign card supplies for the Company’s Impulse Retail systems, laser printable cardstock and label supplies. Additionally, in October 2014, the Company announced a new product, The Like Machine TM , which is an in-store consumer approval device. The Company pays royalties pursuant to a licensing agreement to sell this new product, which is currently in the pilot phase of its launch.
Basis of Presentation	Basis of Presentation . Financial statements for the interim periods included herein are unaudited; however, they contain all adjustments, including normal recurring accruals, which in the opinion of management, are necessary to present fairly the financial position of the Company at September 30, 2015, its results of operations for the three and nine months ended September 30, 2015 and 2014, and its cash flows for the nine months ended September 30, 2015 and 2014. Results of operations for the periods presented are not necessarily indicative of the results to be expected for the full year. The financial statements do not include certain footnote disclosures and financial information normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America and, therefore, should be read in conjunction with the financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. The Summary of Significant Accounting Policies in the Company’s 2014 Annual Report on Form 10-K describes the Company’s accounting policies.
Inventories	Inventories . Inventories are primarily composed of parts and supplies for Impulse machine, sign cards, and rollstock. Inventory is valued at the lower of cost or market using the first-in, first-out (FIFO) method, and consisted of the following: September 30, December 31, 2015 2014 Raw materials $ $ Work-in-process Finished goods $ $
Property and Equipment	Property and Equipment . Property and equipment consisted of the following: September 30, December 31, 2015 2014 Property and Equipment: Production tooling, machinery and equipment $ $ Office furniture and fixtures Computer equipment and software Web site Leasehold improvements Construction in-progress Accumulated depreciation and amortization ) ) Net Property and Equipment $ $ Depreciation expense was approximately $160,000 and $482,000 in the three and nine months ended September 30, 2015, respectively, and $159,000 and $471,000 in the three and nine months ended September 30, 2014, respectively.
Stock-Based Compensation	Stock-Based Compensation . The Company measures and recognizes compensation expense for all stock-based awards at fair value using the Black-Scholes option pricing model to determine the weighted average fair value of options and employee stock purchase plan rights. The Company recognizes stock-based compensation expense on a graded-attribution method over the requisite service period of the award. The Company issued 200,000 stock option awards, with a weighted average exercise price of $2.82, during the nine months ended September 30, 2015, and the Company estimated the fair value of these awards using the following weighted average assumptions: expected life of 3.4 years, expected volatility of 45%, dividend yield of 0% and risk-free interest rate of 1.18%. The Company estimated the fair value of stock-based rights granted during the nine months ended September 30, 2015, under the Company’s employee stock purchase plan using the following weighted average assumptions: expected life of 1.0 years, expected volatility of 37%, dividend yield of 0% and risk-free interest rate of 0.25%. The Company issued 99,000 restricted stock units during the nine months ended September 30, 2015. The units were assigned a weighted average value of $2.71 per share, based on the stock price on the date of the grant, and vest over a weighted average of 2.3 years. The Company issued 25,000 restricted stock units during the nine months ended September 30, 2014. The units were assigned a value of $3.03 per share, based on the stock price on the date of the grant, and vest over three years. In June 2015, equity grants were made by the Company to the Board of Directors, pursuant to the 2013 Omnibus Stock and Incentive Plan, as amended, in the form of fully vested shares of common stock. A total of 37,233 shares were granted to the Board of Directors. The shares were assigned a value of $2.82 per share, based on the stock price on the date of grant. Total stock-based compensation (benefit) expense recorded for the three and nine months ended September 30, 2015 was ($11,000) and $267,000, respectively, and for the three and nine months ended September 30, 2014 was $83,000 and $300,000, respectively. The benefit recorded for the three months ended September 30, 2015 was due to stock option and restricted stock unit forfeitures, primarily related to the resignation of the Company’s Chief Executive Officer in July 2015. During the three and nine months ended September 30, 2015, there were approximately 80,000 shares and 113,000 shares issued pursuant to stock option exercises, for which the Company received proceeds of $0 and $2,000, respectively. During the three and nine months ended September 30, 2014, there were approximately 26,000 and 95,000 shares issued pursuant to stock option exercises, for which the Company received proceeds of $24,000 and $125,000, respectively. A portion of the stock option exercises in the three and nine months ended September 30, 2015 and 2014 were done on a cashless basis.
Net Income per Share	Net Income per Share . Basic net income per share is computed by dividing net income by the weighted average shares outstanding and excludes any potential dilutive effects of outstanding stock options and restricted stock units. Diluted net income per share gives effect to all diluted potential common shares outstanding during the period. Options to purchase approximately 660,000 and 653,000 shares of common stock with a weighted average exercise price of $3.64 and $3.80, respectively, were outstanding at September 30, 2015 and were not included in the computation of common stock equivalents for the three and nine months ended September 30, 2015 because their exercise prices were higher than the average fair market value of the common shares during the reporting period. Options to purchase approximately 695,000 and 578,000 shares of common stock with a weighted average exercise price of $4.20 and $4.27, respectively, were outstanding at September 30, 2014 and were not included in the computation of common stock equivalents for the three and nine months ended September 30, 2014 because their exercise prices were higher than the average fair market value of the common shares during the reporting period. Weighted average common shares outstanding for the three and nine months ended September 30, 2015 and 2014 were as follows: Three Months Ended Nine Months Ended September 30 September 30 2015 2014 2015 2014 Denominator for basic net income per share - weighted average shares Effect of dilutive securities: Stock options and restricted stock units Denominator for diluted net income per share - weighted average shares

Summary of Significant Accoun16

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2015
Summary of Significant Accounting Policies
Schedule Of Inventories	September 30, December 31, 2015 2014 Raw materials $ $ Work-in-process Finished goods $ $
Schedule Of Property And Equipment	September 30, December 31, 2015 2014 Property and Equipment: Production tooling, machinery and equipment $ $ Office furniture and fixtures Computer equipment and software Web site Leasehold improvements Construction in-progress Accumulated depreciation and amortization ) ) Net Property and Equipment $ $
Schedule Of Weighted Average Common Shares Outstanding	Three Months Ended Nine Months Ended September 30 September 30 2015 2014 2015 2014 Denominator for basic net income per share - weighted average shares Effect of dilutive securities: Stock options and restricted stock units Denominator for diluted net income per share - weighted average shares

Summary of Significant Accoun17

Summary of Significant Accounting Policies (Details) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Inventories
Raw materials	$ 90,000	$ 110,000
Work-in-process	30,000	8,000
Finished goods	348,000	405,000
Inventories	$ 468,000	$ 523,000

Summary of Significant Accoun18

Summary of Significant Accounting Policies (Details 2) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Property and Equipment
Gross Property and Equipment	$ 5,937,000		$ 5,937,000		$ 5,992,000
Accumulated depreciation and amortization	(4,817,000)		(4,817,000)		(4,525,000)
Net Property and Equipment	1,120,000		1,120,000		1,467,000
Depreciation expense	160,000	$ 159,000	482,000	$ 471,000
Production tooling, machinery and equipment
Property and Equipment
Gross Property and Equipment	3,805,000		3,805,000		3,976,000
Office furniture and fixtures
Property and Equipment
Gross Property and Equipment	260,000		260,000		260,000
Computer equipment and software
Property and Equipment
Gross Property and Equipment	1,149,000		1,149,000		1,065,000
Web site
Property and Equipment
Gross Property and Equipment	40,000		40,000		40,000
Leasehold improvements
Property and Equipment
Gross Property and Equipment	616,000		616,000		616,000
Construction in-progress
Property and Equipment
Gross Property and Equipment	$ 67,000		$ 67,000		$ 35,000

Summary of Significant Accoun19

Summary of Significant Accounting Policies (Details 3) - USD ($)	1 Months Ended	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Weighted average assumptions
Total stock-based compensation expense including adjustments		$ (11,000)
Total stock-based compensation expense			$ 83,000	$ 267,000	$ 300,000
Stock Options
Stock-Based Compensation:
Awards granted				200,000
Weighted average exercise price (in dollars per share)				$ 2.82
Weighted average assumptions
Expected life				3 years 4 months 24 days
Expected volatility				45.00%
Dividend yield				0.00%
Risk-free interest rate				1.18%
Total option exercises		80,000	26,000	113,000	95,000
Proceeds from option exercises		$ 0	$ 24,000	$ 2,000	$ 125,000
Employee stock purchase plan
Weighted average assumptions
Expected life				1 year
Expected volatility				37.00%
Dividend yield				0.00%
Risk-free interest rate				0.25%
Restricted stock units
Stock-Based Compensation:
Weighted average exercise price (in dollars per share)				$ 2.71	$ 3.03
Restricted stock units granted (in shares)				99,000	25,000
Vesting period				2 years 3 months 18 days	3 years
2013 Omnibus Stock and Incentive Plan | Board of Directors
Stock-Based Compensation:
Equity awards granted	37,233
Stock Price on Grant Date 1	$ 2.82

Summary of Significant Accoun20

Summary of Significant Accounting Policies (Details 4) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Net Income Per Share
Denominator for basic net income per share - weighted average shares	12,107,000	12,593,000	12,177,000	12,767,000
Effect of dilutive securities: Stock options and restricted stock units	134,000	231,000	174,000	236,000
Denominator for diluted net income per share - weighted average shares	12,241,000	12,824,000	12,351,000	13,003,000
Stock Options
Net Income Per Share
Options not included in computation because they were anti-dilutive	660,000	695,000	653,000	578,000
Weighted average exercise of price of options outstanding that were anti-dilutive	$ 3.64	$ 4.20	$ 3.80	$ 4.27

Investments (Details)

Investments (Details) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Investments.
Available for sale investments	$ 9,910,000	$ 9,698,000

Line of Credit (Details)

Line of Credit (Details)	9 Months Ended
	Sep. 30, 2015USD ($)
Line of Credit
Line of credit, available borrowing capacity	$ 7,500,000
Line of credit, interest rate description	30-day LIBOR
Line of credit, basis spread on variable rate	2.00%
Line of credit, interest rate percentage	2.19%
Line of credit outstanding amount	$ 0

Selling Arrangement (Details)

Selling Arrangement (Details) - Selling Agreement - USD ($)	1 Months Ended	3 Months Ended		9 Months Ended
	Feb. 28, 2011	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Selling Arrangement
Payment for arrangement to sell signs	$ 4,000,000
Term of arrangement	10 years
Amortization expense		$ 100,000	$ 100,000	$ 300,000	$ 300,000
2,016		400,000		400,000
2,017		400,000		400,000
2,018		400,000		400,000
2,019		400,000		400,000
2,020		$ 400,000		$ 400,000

Income Taxes (Details)

Income Taxes (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Income Taxes
Income tax expense	$ 382,000	$ 427,000	$ 621,000	$ 533,000
Income tax rate, percentage	40.50%	50.20%	40.60%	46.70%
Unrecognized tax benefits	$ 486,000		$ 486,000		$ 486,000
Unrecognized tax benefits, if recognized, that would affect the effective income tax rates of future periods	$ 486,000		$ 486,000

Concentrations (Details)

Concentrations (Details) - customer	9 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Net sales
Concentration Risk
Number of customers		2
Net sales | Customer one
Concentration Risk
Number of customers	1
Customer's concentration risk percentage	35.00%	30.00%
Net sales | Customer two
Concentration Risk
Customer's concentration risk percentage		12.00%
Accounts receivable | Customer one
Concentration Risk
Number of customers	1		1
Customer's concentration risk percentage	44.00%		48.00%

Share Repurchase26

Share Repurchase - Stock Repurchase Plan - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 03, 2013
Stock Repurchase Plans
Repurchase of common stock, authorized					$ 5,000,000
Repurchase of common stock, shares	577,000	455,000	609,000	602,000
Repurchase of common stock, net	$ 1,515,000	$ 1,431,000	$ 1,614,000	$ 1,886,000

Severance Accrual (Details)

Severance Accrual (Details) - Chief Executive Officer	3 Months Ended
	Sep. 30, 2015USD ($)
Net charge to general and administrative expense relating to resignation of chief executive officer (CEO)	$ 223,000
Severance Costs	350,000
Forfeiture of stock options, restricted stock units and bonus accrual	127,000
Severance Accrual	$ 350,000