Lendway (LDWY) 10-Q 28 Jul 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Jul. 25, 2016
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	Jun. 30, 2016
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		11,645,233
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2

BALANCE SHEETS

BALANCE SHEETS - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Current Assets:
Cash and cash equivalents	$ 10,772,000	$ 8,523,000
Accounts receivable, net	6,784,000	8,392,000
Available-for-sale investments	6,213,000	9,490,000
Inventories	570,000	391,000
Income tax receivable	465,000	1,000
Prepaid expenses and other	754,000	492,000
Total Current Assets	25,558,000	27,289,000
Other Assets:
Property and equipment, net	1,585,000	1,584,000
Other, net	2,222,000	2,841,000
Total Assets	29,365,000	31,714,000
Current Liabilities:
Accounts payable	2,382,000	3,355,000
Accrued liabilities:
Compensation	744,000	1,494,000
Other	493,000	715,000
Income tax payable	80,000	264,000
Deferred revenue	396,000	164,000
Total Current Liabilities	4,095,000	5,992,000
Long-Term Liabilities:
Deferred tax liabilities	199,000	199,000
Accrued income taxes	528,000	528,000
Deferred rent	300,000	275,000
Total Long-Term Liabilities	1,027,000	1,002,000
Shareholders' Equity:
Common stock, par value $.01: Authorized shares - 40,000,000 Issued shares - 11,774,000 at June 30, 2016 and 11,721,000 at December 31, 2015 Outstanding shares - 11,631,000 at June 30, 2016 and 11,633,000 at December 31, 2015	116,000	116,000
Additional paid-in capital	17,731,000	17,810,000
Retained earnings	6,396,000	6,805,000
Accumulated other comprehensive loss		(11,000)
Total Shareholders' Equity	24,243,000	24,720,000
Total Liabilities and Shareholders' Equity	$ 29,365,000	$ 31,714,000

BALANCE SHEETS (Parenthetical)

BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2016	Dec. 31, 2015
Balance Sheets
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	40,000,000	40,000,000
Common stock, shares issued	11,774,000	11,721,000
Common stock, shares outstanding	11,631,000	11,633,000

STATEMENTS OF COMPREHENSIVE INC

STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Statements of Comprehensive Income (Loss)
Services revenues	$ 6,163,000	$ 6,212,000	$ 11,780,000	$ 12,258,000
Products revenues	454,000	461,000	915,000	956,000
Total Net Sales	6,617,000	6,673,000	12,695,000	13,214,000
Cost of services	4,199,000	3,371,000	7,982,000	6,760,000
Cost of goods sold	302,000	316,000	630,000	666,000
Total Cost of Sales	4,501,000	3,687,000	8,612,000	7,426,000
Gross Profit	2,116,000	2,986,000	4,083,000	5,788,000
Operating Expenses:
Selling	1,036,000	1,145,000	2,144,000	2,489,000
Marketing	257,000	451,000	527,000	786,000
General and administrative	1,110,000	1,003,000	2,270,000	1,965,000
Total Operating Expenses	2,403,000	2,599,000	4,941,000	5,240,000
Operating Income (Loss)	(287,000)	387,000	(858,000)	548,000
Other income	15,000	27,000	32,000	37,000
Income (Loss) Before Taxes	(272,000)	414,000	(826,000)	585,000
Income tax expense (benefit)	(185,000)	164,000	(417,000)	239,000
Net Income (Loss)	(87,000)	250,000	(409,000)	346,000
Other comprehensive income (loss), net of tax:
Unrealized gain on available for sale securities	2,000	1,000	11,000	7,000
Comprehensive Income (Loss)	$ (85,000)	$ 251,000	$ (398,000)	$ 353,000
Net income (loss) per share:
Basic	$ (0.01)	$ 0.02	$ (0.04)	$ 0.03
Diluted	$ (0.01)	$ 0.02	$ (0.04)	$ 0.03
Shares used in calculation of net income (loss) per share:
Basic	11,612,000	12,213,000	11,618,000	12,212,000
Diluted	11,612,000	12,392,000	11,618,000	12,406,000

STATEMENTS OF CASH FLOWS

STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Operating Activities:
Net income (loss)	$ (409,000)	$ 346,000
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	785,000	567,000
Changes in allowance for doubtful accounts	19,000	(32,000)
Deferred income tax expense		119,000
Stock-based compensation expense	108,000	278,000
Changes in operating assets and liabilities:
Accounts receivable	1,589,000	(141,000)
Inventories	(179,000)	74,000
Income tax receivable	(464,000)	254,000
Prepaid expenses and other	(36,000)	263,000
Accounts payable	(973,000)	(471,000)
Accrued liabilities	(947,000)	(570,000)
Income tax payable	(184,000)	30,000
Excess tax benefit from stock-based awards		(3,000)
Deferred revenue	232,000	1,009,000
Net cash provided by (used in) operating activities	(459,000)	1,723,000
Investing Activities:
Purchases of property and equipment	(393,000)	(101,000)
Purchases of investments		(3,439,000)
Proceeds from sale or maturity of investments	3,288,000	3,332,000
Net cash provided by (used in) investing activities	2,895,000	(208,000)
Financing Activities:
Proceeds from issuance of common stock, net	60,000	56,000
Excess tax benefit from stock-based awards		3,000
Repurchase of common stock, net	(247,000)	(99,000)
Net cash used in financing activities	(187,000)	(40,000)
Increase in cash and cash equivalents	2,249,000	1,475,000
Cash and cash equivalents at beginning of period	8,523,000	7,237,000
Cash and cash equivalents at end of period	10,772,000	8,712,000
Supplemental disclosures for cash flow information:
Cash paid during the period for income taxes	$ 238,000	$ 13,000

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2016
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 primarily to consumer packaged goods manufacturers. The Company’s products include the Insignia Point-of-Purchase Services (POPS) in-store marketing program, thermal sign card supplies for the Company’s Impulse Retail System, and laser printable cardstock and label supplies. In October 2014, the Company announced the introduction of a new product, The Like Machine TM (“TLM”). The Company previously licensed this product from TLM Holdings, LLC (“TLMH”), a company in which Insignia’s former Chief Sales and Marketing Officer, Tim Halfmann, is the majority owner and serves as a principal. In March 2016, the Company and TLMH signed a new distribution agreement for the sale of The Like Machine to Insignia’s customers. This distribution agreement replaced the Company’s prior license agreement with TLMH. Mr. Halfmann resigned from Insignia, effective April 30, 2016 in order to focus his efforts more fully on The Like Machine product and its evolution going forward. 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 June 30, 2016, and its results of operations for the three and six months ended June 30, 2016 and 2015, and its cash flows for the six months ended June 30, 2016 and 2015. 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, 2015. The Summary of Significant Accounting Policies in the Company’s 2015 Annual Report on Form 10-K describes the Company’s accounting policies. Inventories . Inventories are primarily comprised of parts and supplies for Impulse machine, sign cards, rollstock and TLM devices. Inventory is valued at the lower of cost or market using the first-in, first-out (FIFO) method, and consisted of the following as of the dates indicated: June 30, December 31, 2016 2015 Raw materials $ $ Work-in-process Finished goods $ $ Property and Equipment . Property and equipment consisted of the following as of the dates indicated: June 30, December 31, 2016 2015 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 $196,000 and $390,000 in the three and six months ended June 30, 2016, respectively, and $159,000 and $322,000 in the three and six months ended June 30, 2015, 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 options to purchase an aggregate of 20,000 shares of common stock under its 2013 Omnibus Stock and Incentive Plan, as amended (the “2013 Plan”), with a weighted average exercise price of $2.90, during the six months ended June 30, 2016. The Company estimated the fair value of these awards using the following weighted average assumptions: expected life of 2.5 years, expected volatility of 41%, dividend yield of 0% and risk-free interest rate of 1.00%. The Company issued options to purchase an aggregate of 200,000 shares of common stock under the 2013 Plan, as amended, with a weighted average exercise price of $2.82, during the six months ended June 30, 2015. 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%. During the six months ended June 30, 2016, the Company issued 100,000 shares of restricted stock under the 2013 Plan. The shares underlying the awards were assigned a value of $2.33 per share, based on the stock price on the date of the grant, and are scheduled to vest over five years. The Company issued 31,000 restricted stock units under the 2013 Plan during the six months ended June 30, 2015. Each unit represents the right to acquire one share of the Company’s common stock. The units were assigned a value of $2.82 per share, based on the stock price on the date of grant, and are scheduled to vest over three years. The Company estimated the fair value of stock-based awards granted during the six months ended June 30, 2016, under the Company’s employee stock purchase plan using the following weighted average assumptions: expected life of 1.0 years, expected volatility of 31%, dividend yield of 0% and risk-free interest rate of 0.61%. During May and June 2016, members of the Board of Directors received grants totaling 54,036 fully vested shares of common stock pursuant to the 2013 Plan. The shares were assigned a weighted average value of $2.19 per share, based on the stock prices on the applicable grant dates, for a total value of $119,000, of which $109,000 is included in stock-based compensation expense for the six months ended June 30, 2016 and $10,000 was accrued for and expensed in the prior year. In June 2015, members of the Board of Directors received similar grants totaling 37,233 shares pursuant to the 2013 Plan. The shares were assigned a value of $2.82 per share, based on the stock price on the date of grant, for a total value of $105,000, which is included in stock-based compensation expense for the six months ended June 30, 2015. Total stock-based compensation expense recorded for the three and six months ended June 30, 2016 was $82,000 and $108,000, respectively, and for the three and six months ended June 30, 2015 was $195,000 and $278,000, respectively. During each of the three and six months ended June 30, 2016, there were approximately 61,000 shares issued pursuant to stock option exercises, for which the Company received proceeds of $16,000. During the three and six months ended June 30, 2015 there were approximately 10,000 shares and 34,000 shares issued pursuant to stock option exercises, for which the Company received proceeds of $1,000 and $2,000, respectively. A portion of the stock option exercises in the three and six months ended June 30, 2016 and 2015 were completed on a cashless basis. Net Income (Loss) per Share . Basic net income (loss) per share is computed by dividing net income (loss) by the weighted average shares outstanding and excludes any potential dilutive effects of stock options and restricted stock units and awards. Diluted net income (loss) per share gives effect to all diluted potential common shares outstanding during the period. Due to the net loss incurred during the three and six months ended June 30, 2016, all stock awards were anti-dilutive for the period. Options to purchase approximately 628,000 and 650,000 shares of common stock with a weighted average exercise price of $3.79 and $3.89, respectively, were outstanding at June 30, 2015 and were not included in the computation of common stock equivalents for the three and six months ended June 30, 2015 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 six months ended June 30, 2016 and 2015 were as follows: Three Months Ended Six Months Ended June 30 June 30 2016 2015 2016 2015 Denominator for basic net income (loss) per share - weighted average shares Effect of dilutive securities: Stock options and restricted stock units and awards — — Denominator for diluted net income (loss) per share - weighted average shares

Investments

Investments	6 Months Ended
	Jun. 30, 2016
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 June 30, 2016 and 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 and were valued using Level 2 inputs.

Selling Arrangement

Selling Arrangement	6 Months Ended
	Jun. 30, 2016
Selling Arrangement
Selling Arrangement	3. Selling Arrangement. In 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 $200,000 in both of the three and six months ended June 30, 2016 and 2015, respectively, and is expected to be $400,000 per year over the next four years and $117,000 in the year ending December 31, 2021, is recorded within cost of services in the Company’s statements of comprehensive income (loss). The net carrying amount of the selling arrangement is recorded within other assets on the Company’s condensed balance sheet.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2016
Income Taxes
Income Taxes	4. Income Taxes. For the three and six months ended June 30, 2016, the Company recorded income tax benefit of $185,000 and $417,000, or 68.0% and 50.5% of loss before taxes, respectively. For the three and six months ended June 30, 2015, the Company recorded income tax expense of $164,000 and $239,000, or 39.6% and 40.9% of income before taxes, respectively. The income tax provision (benefit) for the three and six months ended June 30, 2016 and 2015 is comprised of federal and state taxes. The primary differences between the Company’s June 30, 2016 and 2015 effective tax rates and the statutory federal rate are expenses related to stock-based compensation and nondeductible meals and entertainment. At relatively low levels of projected income (loss) before income taxes, these differences can result in large swings in the effective rate. 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 June 30, 2016 and December 31, 2015, the Company had unrecognized tax benefits totaling $528,000, including interest, which relates 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 $528,000. 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 2016.

Concentrations

Concentrations	6 Months Ended
	Jun. 30, 2016
Concentrations
Concentrations	5. Concentrations. During the six months ended June 30, 2016, two customers accounted for 36% and 10% of the Company’s total net sales. During the six months ended June 30, 2015, one customer accounted for 35% of the Company’s total net sales. At June 30, 2016, one customer accounted for 45% of the Company’s total accounts receivable. At December 31, 2015, one customer accounted for 62% of the Company’s total accounts receivable. Although there are a number of customers that the Company sells to, 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 Repurchases

Share Repurchases	6 Months Ended
	Jun. 30, 2016
Share Repurchases
Share Repurchases	6. Share Repurchase. On October 30, 2015, the Board of Directors authorized the repurchase of up to $5,000,000 of the Company’s common stock on or before October 30, 2017. 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 six months ended June 30, 2016, the Company repurchased approximately 60,000 and 100,000 shares, respectively, at a total cost of $141,000 and $247,000. As of June 30, 2016, the approximate dollar value of shares that may yet be purchased by the Company under the plan was $4,740,000. Under a prior plan that expired November 3, 2015, for the three and six months ended June 30, 2015, the Company repurchased approximately 2,000 and 33,000 shares, respectively, at a total cost of $6,000 and $99,000.

Recently Issued Accounting Pron

Recently Issued Accounting Pronouncements	6 Months Ended
	Jun. 30, 2016
Recently Issued Accounting Pronouncements
Recently Issued Accounting Pronouncements	7. 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 section is intended to conform revenue accounting principles with a concurrently issued International Financial Reporting Standards with previously differing treatment between United States practice and those of much of the rest of the world, as well as, to enhance disclosures related to disaggregated revenue information. The updated guidance is effective for annual reporting periods beginning on or after December 15, 2017, and interim periods within those annual periods. Early application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. We are in the process of determining the impact that the updated accounting guidance will have on our financial statements. In February 2016, FASB issued ASU 2016-2, Leases , under which lessees will recognize most leases on the balance sheet. This will generally increase reported assets and liabilities. For public entities, this ASU is effective for annual and interim periods in fiscal years beginning after December 15, 2018. ASU 2016-2 mandates a modified retrospective transition method for all entities. We are in the process of determining the impact that the updated accounting guidance will have on our financial statements. In March 2016, the FASB issued ASU 2016-9, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting , which simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. For public entities, this ASU is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. We are in the process of determining the impact that the updated accounting guidance will have on our financial statements.

Summary of Significant Accoun13

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2016
Summary of Significant Accounting Policies
Description of Business	Description of Business. Insignia Systems, Inc. (the “Company”) markets in-store advertising products, programs and services primarily to consumer packaged goods manufacturers. The Company’s products include the Insignia Point-of-Purchase Services (POPS) in-store marketing program, thermal sign card supplies for the Company’s Impulse Retail System, and laser printable cardstock and label supplies. In October 2014, the Company announced the introduction of a new product, The Like Machine TM (“TLM”). The Company previously licensed this product from TLM Holdings, LLC (“TLMH”), a company in which Insignia’s former Chief Sales and Marketing Officer, Tim Halfmann, is the majority owner and serves as a principal. In March 2016, the Company and TLMH signed a new distribution agreement for the sale of The Like Machine to Insignia’s customers. This distribution agreement replaced the Company’s prior license agreement with TLMH. Mr. Halfmann resigned from Insignia, effective April 30, 2016 in order to focus his efforts more fully on The Like Machine product and its evolution going forward.
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 June 30, 2016, and its results of operations for the three and six months ended June 30, 2016 and 2015, and its cash flows for the six months ended June 30, 2016 and 2015. 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, 2015. The Summary of Significant Accounting Policies in the Company’s 2015 Annual Report on Form 10-K describes the Company’s accounting policies.
Inventories	Inventories . Inventories are primarily comprised of parts and supplies for Impulse machine, sign cards, rollstock and TLM devices. Inventory is valued at the lower of cost or market using the first-in, first-out (FIFO) method, and consisted of the following as of the dates indicated: June 30, December 31, 2016 2015 Raw materials $ $ Work-in-process Finished goods $ $
Property and Equipment	Property and Equipment . Property and equipment consisted of the following as of the dates indicated: June 30, December 31, 2016 2015 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 $196,000 and $390,000 in the three and six months ended June 30, 2016, respectively, and $159,000 and $322,000 in the three and six months ended June 30, 2015, 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 options to purchase an aggregate of 20,000 shares of common stock under its 2013 Omnibus Stock and Incentive Plan, as amended (the “2013 Plan”), with a weighted average exercise price of $2.90, during the six months ended June 30, 2016. The Company estimated the fair value of these awards using the following weighted average assumptions: expected life of 2.5 years, expected volatility of 41%, dividend yield of 0% and risk-free interest rate of 1.00%. The Company issued options to purchase an aggregate of 200,000 shares of common stock under the 2013 Plan, as amended, with a weighted average exercise price of $2.82, during the six months ended June 30, 2015. 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%. During the six months ended June 30, 2016, the Company issued 100,000 shares of restricted stock under the 2013 Plan. The shares underlying the awards were assigned a value of $2.33 per share, based on the stock price on the date of the grant, and are scheduled to vest over five years. The Company issued 31,000 restricted stock units under the 2013 Plan during the six months ended June 30, 2015. Each unit represents the right to acquire one share of the Company’s common stock. The units were assigned a value of $2.82 per share, based on the stock price on the date of grant, and are scheduled to vest over three years. The Company estimated the fair value of stock-based awards granted during the six months ended June 30, 2016, under the Company’s employee stock purchase plan using the following weighted average assumptions: expected life of 1.0 years, expected volatility of 31%, dividend yield of 0% and risk-free interest rate of 0.61%. During May and June 2016, members of the Board of Directors received grants totaling 54,036 fully vested shares of common stock pursuant to the 2013 Plan. The shares were assigned a weighted average value of $2.19 per share, based on the stock prices on the applicable grant dates, for a total value of $119,000, of which $109,000 is included in stock-based compensation expense for the six months ended June 30, 2016 and $10,000 was accrued for and expensed in the prior year. In June 2015, members of the Board of Directors received similar grants totaling 37,233 shares pursuant to the 2013 Plan. The shares were assigned a value of $2.82 per share, based on the stock price on the date of grant, for a total value of $105,000, which is included in stock-based compensation expense for the six months ended June 30, 2015. Total stock-based compensation expense recorded for the three and six months ended June 30, 2016 was $82,000 and $108,000, respectively, and for the three and six months ended June 30, 2015 was $195,000 and $278,000, respectively. During each of the three and six months ended June 30, 2016, there were approximately 61,000 shares issued pursuant to stock option exercises, for which the Company received proceeds of $16,000. During the three and six months ended June 30, 2015 there were approximately 10,000 shares and 34,000 shares issued pursuant to stock option exercises, for which the Company received proceeds of $1,000 and $2,000, respectively. A portion of the stock option exercises in the three and six months ended June 30, 2016 and 2015 were completed on a cashless basis.
Net Income (Loss) per Share	Net Income (Loss) per Share . Basic net income (loss) per share is computed by dividing net income (loss) by the weighted average shares outstanding and excludes any potential dilutive effects of stock options and restricted stock units and awards. Diluted net income (loss) per share gives effect to all diluted potential common shares outstanding during the period. Due to the net loss incurred during the three and six months ended June 30, 2016, all stock awards were anti-dilutive for the period. Options to purchase approximately 628,000 and 650,000 shares of common stock with a weighted average exercise price of $3.79 and $3.89, respectively, were outstanding at June 30, 2015 and were not included in the computation of common stock equivalents for the three and six months ended June 30, 2015 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 six months ended June 30, 2016 and 2015 were as follows: Three Months Ended Six Months Ended June 30 June 30 2016 2015 2016 2015 Denominator for basic net income (loss) per share - weighted average shares Effect of dilutive securities: Stock options and restricted stock units and awards — — Denominator for diluted net income (loss) per share - weighted average shares

Summary of Significant Accoun14

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2016
Summary of Significant Accounting Policies
Schedule Of Inventories	June 30, December 31, 2016 2015 Raw materials $ $ Work-in-process Finished goods $ $
Schedule of Property and Equipment	June 30, December 31, 2016 2015 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 Six Months Ended June 30 June 30 2016 2015 2016 2015 Denominator for basic net income (loss) per share - weighted average shares Effect of dilutive securities: Stock options and restricted stock units and awards — — Denominator for diluted net income (loss) per share - weighted average shares

Summary of Significant Accoun15

Summary of Significant Accounting Policies - Inventories (Details) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Inventories
Raw materials	$ 82,000	$ 69,000
Work-in-process	12,000	4,000
Finished goods	476,000	318,000
Inventories	$ 570,000	$ 391,000

Summary of Significant Accoun16

Summary of Significant Accounting Policies - PP&E (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Property and Equipment
Gross Property and Equipment	$ 6,035,000		$ 6,035,000		$ 5,756,000
Accumulated depreciation and amortization	(4,450,000)		(4,450,000)		(4,172,000)
Net Property and Equipment	1,585,000		1,585,000		1,584,000
Depreciation expense	196,000	$ 159,000	390,000	$ 322,000
Production tooling, machinery and equipment
Property and Equipment
Gross Property and Equipment	3,728,000		3,728,000		3,722,000
Office furniture and fixtures
Property and Equipment
Gross Property and Equipment	322,000		322,000		145,000
Computer equipment and software
Property and Equipment
Gross Property and Equipment	1,279,000		1,279,000		1,233,000
Web development
Property and Equipment
Gross Property and Equipment	40,000		40,000		40,000
Leasehold improvements
Property and Equipment
Gross Property and Equipment	577,000		577,000
Construction in-progress
Property and Equipment
Gross Property and Equipment	$ 89,000		$ 89,000		$ 616,000

Summary of Significant Accoun17

Summary of Significant Accounting Policies - Stock Based Compensation (Details) - USD ($)	1 Months Ended	2 Months Ended	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Stock-Based Compensation:
Total stock-based compensation expense			$ 82,000	$ 195,000	$ 108,000	$ 278,000
Stock Options
Stock-Based Compensation:
Stock options awards (in shares)					20,000	200,000
Weighted average exercise price (in dollars per share)					$ 2.90	$ 2.82
Weighted average assumptions
Expected life					2 years 6 months	3 years 4 months 24 days
Expected volatility					41.00%	45.00%
Dividend yield					0.00%	0.00%
Risk-free interest rate					1.00%	1.18%
Options exercised (in shares)			61,000	10,000	61,000	34,000
Proceeds from options exercised			$ 16,000	$ 1,000	$ 16,000	$ 2,000
Employee Stock Purchase Plan
Weighted average assumptions
Expected life					1 year
Expected volatility					31.00%
Dividend yield					0.00%
Risk-free interest rate					0.61%
Restricted Stock Units
Stock-Based Compensation:
Restricted stock (in shares)						31,000
Restricted stock on grant date (in dollars per share)	$ 2.82			$ 2.82		$ 2.82
Vesting period						3 years
Number of shares each has right to acquire	1			1		1
Restricted Stock
Stock-Based Compensation:
Restricted stock (in shares)					100,000
Restricted stock on grant date (in dollars per share)		$ 2.33	$ 2.33		$ 2.33
Vesting period					5 years
2013 Omnibus Stock and Incentive Plan | Board of Directors
Stock-Based Compensation:
Total stock-based compensation expense	$ 105,000	$ 119,000
Equity awards granted	37,233	54,036
Weighted average grant-date fair value of equity granted (in dollars per share)	$ 2.82	$ 2.19
Stock-based expense					$ 109,000
Stock based compensation accrual and expense							$ 10,000

Summary of Significant Accoun18

Summary of Significant Accounting Policies -Net Income (Loss) Per Share (Details) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Net Income (Loss) Per Share
Denominator for basic net income (loss) per share - weighted average shares	11,612,000	12,213,000	11,618,000	12,212,000
Effect of dilutive securities: Stock options and restricted stock units and awards		179,000		194,000
Denominator for diluted net income (loss) per share - weighted average shares	11,612,000	12,392,000	11,618,000	12,406,000
Stock Options
Net Income (Loss) Per Share
Options not included in computation because they were anti-dilutive		628,000		650,000
Weighted average exercise of price of options outstanding that were anti-dilutive		$ 3.79		$ 3.89

Selling Arrangement - News Amer

Selling Arrangement - News America Marketing (Details) - Selling Agreement - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2011
Selling Arrangement
Payment for arrangement to sell signs					$ 4,000,000
Term of arrangement					10 years
Amortization expense	$ 100,000	$ 100,000	$ 200,000	$ 200,000
2,017	400,000		400,000
2,018	400,000		400,000
2,019	400,000		400,000
2,020	400,000		400,000
2,021	$ 117,000		$ 117,000

Income Taxes (Details)

Income Taxes (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Income Taxes
Income tax expense (benefit)	$ (185,000)	$ 164,000	$ (417,000)	$ 239,000
Income tax rate, percentage	68.00%	39.60%	50.50%	40.90%
Unrecognized tax benefits	$ 528,000		$ 528,000		$ 528,000
Unrecognized tax benefits, if recognized, that would affect the effective income tax rates of future periods	$ 528,000		$ 528,000

Concentrations (Details)

Concentrations (Details) - customer	6 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Net sales
Concentration Risk
Number of customers	2	1
Net sales | Customer one
Concentration Risk
Customer's concentration risk percentage	36.00%	35.00%
Net sales | Customer two
Concentration Risk
Customer's concentration risk percentage	10.00%
Accounts receivable
Concentration Risk
Number of customers	1		1
Accounts receivable | Customer one
Concentration Risk
Customer's concentration risk percentage	45.00%		62.00%

Share Repurchase (Details)

Share Repurchase (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Oct. 30, 2015
Stock Repurchase Plan
Stock Repurchase Plans
Repurchase of common stock, authorized					$ 5,000,000
Repurchase of common stock, shares	60,000		100,000
Repurchase of common stock, net	$ 141,000		$ 247,000
Approximate Dollar Value of Shares That May Yet Be Purchased under the Plans or Programs	$ 4,740,000		$ 4,740,000
Plan Expiring Nov 3, 2015
Stock Repurchase Plans
Repurchase of common stock, shares		2,000		33,000
Repurchase of common stock, net		$ 6,000		$ 99,000