Lendway (LDWY) 10-Q 27 Oct 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Oct. 24, 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	Sep. 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		11,727,803
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3

BALANCE SHEETS

BALANCE SHEETS - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Current Assets:
Cash and cash equivalents	$ 11,412,000	$ 8,523,000
Available-for-sale investments	3,430,000	9,490,000
Accounts receivable, net	8,013,000	8,392,000
Inventories	575,000	391,000
Income tax receivable	325,000	1,000
Prepaid expenses and other	983,000	492,000
Total Current Assets	24,738,000	27,289,000
Other Assets:
Property and equipment, net	1,530,000	1,584,000
Other, net	2,094,000	2,841,000
Total Assets	28,362,000	31,714,000
Current Liabilities:
Accounts payable	2,084,000	3,355,000
Accrued liabilities:
Compensation	789,000	1,494,000
Other	310,000	715,000
Income tax payable	80,000	264,000
Deferred revenue	36,000	164,000
Total Current Liabilities	3,299,000	5,992,000
Long-Term Liabilities:
Deferred tax liabilities	199,000	199,000
Accrued income taxes	528,000	528,000
Deferred rent	287,000	275,000
Total Long-Term Liabilities	1,014,000	1,002,000
Commitments and Contingencies
Shareholders' Equity:
Common stock, par value $.01: Authorized shares - 40,000,000 Issued shares - 11,802,000 at September 30, 2016 and 11,721,000 at December 31, 2015, Outstanding shares - 11,632,000 at September 30, 2016 and 11,633,000 at December 31, 2015	116,000	116,000
Additional paid-in capital	17,704,000	17,810,000
Retained earnings	6,229,000	6,805,000
Accumulated other comprehensive loss	0	(11,000)
Total Shareholders' Equity	24,049,000	24,720,000
Total Liabilities and Shareholders' Equity	$ 28,362,000	$ 31,714,000

BALANCE SHEETS (Parenthetical)

BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	40,000,000	40,000,000
Common stock, shares issued	11,802,000	11,721,000
Common stock, shares outstanding	11,632,000	11,633,000

STATEMENTS OF COMPREHENSIVE INC

STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income Statement [Abstract]
Services revenues	$ 6,050,000	$ 7,098,000	$ 17,830,000	$ 19,356,000
Products revenues	419,000	450,000	1,334,000	1,406,000
Total Net Sales	6,469,000	7,548,000	19,164,000	20,762,000
Cost of services	4,171,000	3,734,000	12,153,000	10,494,000
Cost of goods sold	298,000	315,000	928,000	981,000
Total Cost of Sales	4,469,000	4,049,000	13,081,000	11,475,000
Gross Profit	2,000,000	3,499,000	6,083,000	9,287,000
Operating Expenses:
Selling	917,000	962,000	3,061,000	3,451,000
Marketing	242,000	468,000	769,000	1,254,000
General and administrative	879,000	1,145,000	3,149,000	3,110,000
Total Operating Expenses	2,038,000	2,575,000	6,979,000	7,815,000
Operating Income (Loss)	(38,000)	924,000	(896,000)	1,472,000
Other income	12,000	19,000	44,000	56,000
Income (Loss) Before Taxes	(26,000)	943,000	(852,000)	1,528,000
Income tax expense (benefit)	141,000	382,000	(276,000)	621,000
Net Income (Loss)	(167,000)	561,000	(576,000)	907,000
Other comprehensive income (loss), net of tax:
Unrealized gain on available for sale securities	0	0	11,000	7,000
Comprehensive Income (Loss)	$ (167,000)	$ 561,000	$ (565,000)	$ 914,000
Net income (loss) per share:
Basic	$ (0.01)	$ 0.05	$ (0.05)	$ 0.07
Diluted	$ (0.01)	$ 0.05	$ (0.05)	$ 0.07
Shares used in calculation of net income (loss) per share:
Basic	11,642,000	12,107,000	11,626,000	12,177,000
Diluted	11,642,000	12,241,000	11,626,000	12,351,000

STATEMENTS OF CASH FLOWS

STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Operating Activities:
Net income (loss)	$ (576,000)	$ 907,000
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	1,101,000	851,000
Changes in allowance for doubtful accounts	41,000	(19,000)
Deferred income tax expense	0	119,000
Stock-based compensation expense	150,000	267,000
Gain on sale of property and equipment	(5,000)	(25,000)
Changes in operating assets and liabilities:
Accounts receivable	338,000	457,000
Inventories	(184,000)	55,000
Income tax receivable	(324,000)	277,000
Prepaid expenses and other	(266,000)	118,000
Accounts payable	(1,271,000)	(379,000)
Accrued liabilities	(1,098,000)	498,000
Income tax payable	(184,000)	159,000
Excess tax benefit from stock-based awards	0	(4,000)
Deferred revenue	(128,000)	456,000
Net cash provided by (used in) operating activities	(2,406,000)	3,737,000
Investing Activities:
Purchases of property and equipment	(524,000)	(137,000)
Purchases of investments	0	(4,513,000)
Proceeds from sale or maturity of investments	6,071,000	4,308,000
Proceeds received from sale of property and equipment	5,000	25,000
Net cash provided by (used in) investing activities	5,552,000	(317,000)
Financing Activities:
Proceeds from issuance of common stock, net	44,000	48,000
Excess tax benefit from stock-based awards	0	4,000
Repurchase of common stock, net	(301,000)	(1,614,000)
Net cash used in financing activities	(257,000)	(1,562,000)
Increase in cash and cash equivalents	2,889,000	1,858,000
Cash and cash equivalents at beginning of period	8,523,000	7,237,000
Cash and cash equivalents at end of period	11,412,000	9,095,000
Supplemental disclosures for cash flow information:
Cash paid during the period for income taxes	$ 238,000	$ 243,000

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Description of Business. Basis of Presentation . 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 . September 30, December 31, 2016 2015 Raw materials $ 91,000 $ 69,000 Work-in-process 14,000 4,000 Finished goods 470,000 318,000 $ 575,000 $ 391,000 Property and Equipment . September 30, December 31, Property and Equipment: Production tooling, machinery and equipment $ 3,596,000 $ 3,722,000 Office furniture and fixtures 322,000 145,000 Computer equipment and software 1,280,000 1,233,000 Web site 40,000 40,000 Leasehold improvements 577,000 — Construction in-progress 220,000 616,000 6,035,000 5,756,000 Accumulated depreciation and amortization (4,505,000 ) (4,172,000 ) Net Property and Equipment $ 1,530,000 $ 1,584,000 Depreciation expense was approximately $187,000 and $577,000 in the three and nine months ended September 30, 2016, respectively, and $160,000 and $482,000 in the three and nine months ended September 30, 2015, respectively. Stock-Based Compensation 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 nine months ended September 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 nine months ended September 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 nine months ended September 30, 2016, the Company issued 100,000 shares of restricted stock under the 2013 Plan. The shares underlying the award were assigned a value of $2.33 per share, which was the closing price of our common stock on the date of grant, and is scheduled to vest over the five years following the date of grant. No restricted stock was issued during the nine months ended September 30, 2015. During the nine months ended September 30, 2016, the Company issued 11,719 performance-based restricted stock units under the 2013 Plan. Each unit represents the right to acquire one share of the Company’s common stock. The units were assigned a weighted average value of $0.85 per unit, based on market condition assumptions, and are scheduled to vest with respect to 80% of the units if the price of the Company’s common stock during the applicable measurement period exceeds a minimum performance threshold or 100% if a maximum performance threshold is exceeded. No performance-based restricted stock units were issued during the nine months ended September 30, 2015. During the nine months ended September 30, 2016, the Company issued 43,625 restricted stock units under the 2013 Plan. The units were assigned a weighted average value of $2.14 per share, based on the closing price of our common stock on the applicable dates of grant, and are scheduled to vest over the two years. During the nine months ended September 30, 2015, the Company issued 99,000 restricted stock units. The units were assigned a weighted average value of $2.71 per share, based on the closing price of our common stock on the applicable dates of grant, and are scheduled to vest over a weighted average of 2.3 years. Each of the foregoing restricted stock units represents the right to acquire one share of the Company’s common stock. The Company estimated the fair value of stock-based awards granted during the nine months ended September 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 nine months ended September 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 nine months ended September 30, 2015. Total stock-based compensation (benefit) expense recorded for the three and nine months ended September 30, 2016 was $42,000 and $150,000, respectively, and for the three and nine months ended September 30, 2015 was $(11,000) and $267,000, respectively. During the three and nine months ended September 30, 2016, there were approximately 54,700 shares and 115,700 shares issued pursuant to stock option exercises, for which the Company received proceeds of $0 and $16,000, respectively. 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. A portion of the stock option exercises in the three and nine months ended September 30, 2016 and 2015 were completed on a cashless basis. Net Income (Loss) per Share . Due to the net loss incurred during the three and nine months ended September 30, 2016, all stock awards were anti-dilutive for 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. Weighted average common shares outstanding for the three and nine months ended September 30, 2016 and 2015 were as follows: Three Months Ended Nine Months Ended September 30 September 30 2016 2015 2016 2015 Denominator for basic net income (loss) per share - 11,642,000 12,107,000 11,626,000 12,177,000 Effect of dilutive securities: Stock options and restricted stock units and awards — 134,000 — 174,000 Denominator for diluted net income (loss) per share - 11,642,000 12,241,000 11,626,000 12,351,000

Restructuring

Restructuring	9 Months Ended
	Sep. 30, 2016
Restructuring
Restructuring	The Company implemented a plan to restructure its operations in September 2016, including workforce reductions and other cost-saving initiatives, as well as, adding certain positions. As part of this restructuring plan, the Company reduced its workforce by approximately 12%. A pre-tax restructuring charge of $121,000 was recorded during the three and nine months ended September 30, 2016 and is accrued for and included in accrued compensation as of September 30, 2016. The Company recorded $41,000 of this charge within cost of sales and $80,000 within operating expenses in the Company’s statement of comprehensive income (loss).

Investments

Investments	9 Months Ended
	Sep. 30, 2016
Investment Income, Interest and Dividend [Abstract]
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, 2016 and December 31, 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	9 Months Ended
	Sep. 30, 2016
Selling Arrangement
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 $300,000 in both of the three and nine months ended September 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	9 Months Ended
	Sep. 30, 2016
Income Tax Disclosure [Abstract]
Income Taxes	For the three and nine months ended September 30, 2016, the Company recorded income tax expense (benefit) of $141,000 and $(276,000), or (542.3%) and 32.4% of loss before taxes, respectively. 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. The income tax provision (benefit) for the three and nine months ended September 30, 2016 and 2015 is composed of federal and state taxes. The primary differences between the Company’s September 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 which resulted in an income tax expense for the three months ended September 30, 2016 despite a pretax loss. The Company reassesses its effective rate each reporting period and adjusts the annual effective rate if deemed necessary, based on projected annual taxable income (loss). As of September 30, 2016 and December 31, 2015, the Company had unrecognized tax benefits totaling $528,000, 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 $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	9 Months Ended
	Sep. 30, 2016
Risks and Uncertainties [Abstract]
Concentrations	During the nine months ended September 30, 2016, one customer accounted for 33% of the Company’s total net sales. During the nine months ended September 30, 2015, one customer accounted for 35% of the Company’s total net sales. At September 30, 2016, one customer accounted for 34% 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 either a major customer or a major retailer, from the Company’s retail network, could adversely affect operating results.

Share Repurchases

Share Repurchases	9 Months Ended
	Sep. 30, 2016
Stockholders' Equity Note [Abstract]
Share Repurchases	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 nine months ended September 30, 2016, the Company repurchased approximately 23,000 and 123,000 shares, respectively, at a total cost of $54,000 and $301,000. As of September 30, 2016, the approximate dollar value of shares that may yet be purchased by the Company under the plan was $4,687,000. Under a prior plan that expired November 3, 2015, 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.

Recently Issued Accounting Pron

Recently Issued Accounting Pronouncements	9 Months Ended
	Sep. 30, 2016
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
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 upon adoption. In February 2016, FASB issued ASU 2016-2, Leases In March 2016, the FASB issued ASU 2016-9, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting

Summary of Significant Accoun14

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
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 MachineTM (“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 TLM 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 September 30, 2016, and its results of operations for the three and nine months ended September 30, 2016 and 2015, and its cash flows for the nine months ended September 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: September 30, December 31, 2016 2015 Raw materials $ 91,000 $ 69,000 Work-in-process 14,000 4,000 Finished goods 470,000 318,000 $ 575,000 $ 391,000
Property and Equipment	Property and equipment consisted of the following as of the dates indicated: September 30, December 31, Property and Equipment: Production tooling, machinery and equipment $ 3,596,000 $ 3,722,000 Office furniture and fixtures 322,000 145,000 Computer equipment and software 1,280,000 1,233,000 Web site 40,000 40,000 Leasehold improvements 577,000 — Construction in-progress 220,000 616,000 6,035,000 5,756,000 Accumulated depreciation and amortization (4,505,000 ) (4,172,000 ) Net Property and Equipment $ 1,530,000 $ 1,584,000 Depreciation expense was approximately $187,000 and $577,000 in the three and nine months ended September 30, 2016, respectively, and $160,000 and $482,000 in the three and nine months ended September 30, 2015, respectively.
Stock-Based Compensation	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 nine months ended September 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 nine months ended September 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 nine months ended September 30, 2016, the Company issued 100,000 shares of restricted stock under the 2013 Plan. The shares underlying the award were assigned a value of $2.33 per share, which was the closing price of our common stock on the date of grant, and is scheduled to vest over the five years following the date of grant. No restricted stock was issued during the nine months ended September 30, 2015. During the nine months ended September 30, 2016, the Company issued 11,719 performance-based restricted stock units under the 2013 Plan. Each unit represents the right to acquire one share of the Company’s common stock. The units were assigned a weighted average value of $0.85 per unit, based on market condition assumptions, and are scheduled to vest with respect to 80% of the units if the price of the Company’s common stock during the applicable measurement period exceeds a minimum performance threshold or 100% if a maximum performance threshold is exceeded. No performance-based restricted stock units were issued during the nine months ended September 30, 2015. During the nine months ended September 30, 2016, the Company issued 43,625 restricted stock units under the 2013 Plan. The units were assigned a weighted average value of $2.14 per share, based on the closing price of our common stock on the applicable dates of grant, and are scheduled to vest over the two years. During the nine months ended September 30, 2015, the Company issued 99,000 restricted stock units. The units were assigned a weighted average value of $2.71 per share, based on the closing price of our common stock on the applicable dates of grant, and are scheduled to vest over a weighted average of 2.3 years. Each of the foregoing restricted stock units represents the right to acquire one share of the Company’s common stock. The Company estimated the fair value of stock-based awards granted during the nine months ended September 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 nine months ended September 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 nine months ended September 30, 2015. Total stock-based compensation (benefit) expense recorded for the three and nine months ended September 30, 2016 was $42,000 and $150,000, respectively, and for the three and nine months ended September 30, 2015 was $(11,000) and $267,000, respectively. During the three and nine months ended September 30, 2016, there were approximately 54,700 shares and 115,700 shares issued pursuant to stock option exercises, for which the Company received proceeds of $0 and $16,000, respectively. 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. A portion of the stock option exercises in the three and nine months ended September 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 nine months ended September 30, 2016, all stock awards were anti-dilutive for 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. Weighted average common shares outstanding for the three and nine months ended September 30, 2016 and 2015 were as follows: Three Months Ended Nine Months Ended September 30 September 30 2016 2015 2016 2015 Denominator for basic net income (loss) per share - 11,642,000 12,107,000 11,626,000 12,177,000 Effect of dilutive securities: Stock options and restricted stock units and awards — 134,000 — 174,000 Denominator for diluted net income (loss) per share - 11,642,000 12,241,000 11,626,000 12,351,000

Summary of Significant Accoun15

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Schedule Of Inventories	September 30, December 31, 2016 2015 Raw materials $ 91,000 $ 69,000 Work-in-process 14,000 4,000 Finished goods 470,000 318,000 $ 575,000 $ 391,000
Schedule of Property and Equipment	September 30, December 31, Property and Equipment: Production tooling, machinery and equipment $ 3,596,000 $ 3,722,000 Office furniture and fixtures 322,000 145,000 Computer equipment and software 1,280,000 1,233,000 Web site 40,000 40,000 Leasehold improvements 577,000 — Construction in-progress 220,000 616,000 6,035,000 5,756,000 Accumulated depreciation and amortization (4,505,000 ) (4,172,000 ) Net Property and Equipment $ 1,530,000 $ 1,584,000
Schedule Of Weighted Average Common Shares Outstanding	Three Months Ended Nine Months Ended September 30 September 30 2016 2015 2016 2015 Denominator for basic net income (loss) per share - 11,642,000 12,107,000 11,626,000 12,177,000 Effect of dilutive securities: Stock options and restricted stock units and awards — 134,000 — 174,000 Denominator for diluted net income (loss) per share - 11,642,000 12,241,000 11,626,000 12,351,000

Summary of Significant Accoun16

Summary of Significant Accounting Policies (Details) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Inventories
Raw materials	$ 91,000	$ 69,000
Work-in-process	14,000	4,000
Finished goods	470,000	318,000
Inventories	$ 575,000	$ 391,000

Summary of Significant Accoun17

Summary of Significant Accounting Policies (Details 1) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Gross Property and Equipment	$ 6,035,000	$ 5,756,000
Accumulated depreciation and amortization	(4,505,000)	(4,172,000)
Net Property and Equipment	1,530,000	1,584,000
Production tooling, machinery and equipment [Member]
Property, Plant and Equipment [Line Items]
Gross Property and Equipment	3,596,000	3,722,000
Office furniture and fixtures [Member]
Property, Plant and Equipment [Line Items]
Gross Property and Equipment	322,000	145,000
Computer equipment and software [Member]
Property, Plant and Equipment [Line Items]
Gross Property and Equipment	1,280,000	1,233,000
Web site [Member]
Property, Plant and Equipment [Line Items]
Gross Property and Equipment	40,000	40,000
Leasehold improvements [Member]
Property, Plant and Equipment [Line Items]
Gross Property and Equipment	577,000	0
Construction in-progress [Member]
Property, Plant and Equipment [Line Items]
Gross Property and Equipment	$ 220,000	$ 616,000

Summary of Significant Accoun18

Summary of Significant Accounting Policies (Details 2) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Summary Of Significant Accounting Policies Details 2
Denominator for basic net income (loss) per share - weighted average shares	11,642,000	12,107,000	11,626,000	12,177,000
Effect of dilutive securities: Stock options and restricted stock units and awards	$ 0	$ 134,000	$ 0	$ 174,000
Denominator for diluted net income (loss) per share - weighted average shares	11,642,000	12,241,000	11,626,000	12,351,000

Summary of Significant Accoun19

Summary of Significant Accounting Policies (Details Narrative) - USD ($)	1 Months Ended	2 Months Ended	3 Months Ended		9 Months Ended		12 Months Ended
	Jun. 30, 2015	Jun. 30, 2016	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Depreciation expense			$ 187,000	$ 160,000	$ 577,000	$ 482,000
Weighted average assumptions
Stock-based compensation (benefit) expense			$ 42,000	$ (11,000)	$ 150,000	$ 267,000
Options exercised (in shares)			54,700	80,000	115,700	113,000
Proceeds from options exercised			$ 0	$ 0	$ 16,000	$ 2,000
Options excluded from computation of earnings per share				660,000		653,000
Weighted average exercise of price of options outstanding that were anti-dilutive				$ 3.64		$ 3.80
Employee Stock Purchase Plan [Member]
Weighted average assumptions
Expected life					1 year
Expected volatility					31.00%
Dividend yield					0.00%
Risk-free interest rate					0.61%
Omnibus Stock And Incentive Plan2013 [Member]
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%
Omnibus Stock And Incentive Plan2013 [Member] | Board of Directors [Member]
Equity awards granted	37,233	54,036
Weighted average grant-date fair value of equity granted(in dollars per share)	$ 2.82	$ 2.19
Weighted average assumptions
Stock-based compensation (benefit) expense	$ 105,000	$ 119,000
Stock-based expense					$ 109,000
Stock based compensation accrual and expense							$ 10,000
Omnibus Stock And Incentive Plan2013 [Member] | Restricted Stock [Member]
Restricted stock (in shares)					100,000	0
Restricted stock on the grant date (in dollars per share)					$ 2.33
Vesting period					5 years
Omnibus Stock And Incentive Plan2013 [Member] | Performance-Based Restricted Stock Units R S U [Member]
Restricted stock (in shares)					11,719	0
Performance Based RSU on grant date (in dollars per share)					$ 0.85
Omnibus Stock And Incentive Plan2013 [Member] | Restricted Stock Units R S U [Member]
Restricted stock (in shares)					43,625	99,000
Restricted stock on the grant date (in dollars per share)					$ 2.14	$ 2.71
Vesting period					2 years	2 years 3 months 18 days

Restructuring (Details Narrativ

Restructuring (Details Narrative) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2016
Reduction in workforce		12.00%
Pre-tax restructuring charge	$ 121,000	$ 121,000
Cost of Sales [Member]
Pre-tax restructuring charge	41,000	41,000
Operating Expenses [Member]
Pre-tax restructuring charge	$ 80,000	$ 80,000

Selling Arrangement (Details Na

Selling Arrangement (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2011
Finite-Lived Intangible Assets [Line Items]
Payments for arrangements to sell signs					$ 4,000,000
Term of arrangement					10 years
Customer Contracts [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 100,000	$ 100,000	$ 300,000	$ 300,000
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 Narrative

Income Taxes (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Income tax expense (benefit)	$ 141,000	$ 382,000	$ (276,000)	$ 621,000
Income tax rate, percentage	(542.30%)	40.50%	32.40%	40.60%
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		$ 528,000

Concentrations (Details Narrati

Concentrations (Details Narrative) - Customer One [Member]	9 Months Ended		12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Sales Revenue Net [Member]
Concentration Risk [Line Items]
Customer's concentration risk percentage	33.00%	35.00%
Accounts Receivable [Member]
Concentration Risk [Line Items]
Customer's concentration risk percentage	34.00%		62.00%

Share Repurchase (Details Narra

Share Repurchase (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Oct. 31, 2015
Stock Repurchase Plan [Member]
Stock Repurchase Plans
Repurchase of common stock, authorized					$ 5,000,000
Repurchase of common stock, shares	23,000		123,000
Repurchase of common stock, net	$ 54,000		$ 301,000
Approximate Dollar Value of Shares That May Yet Be Purchased under the Plans or Programs	$ 4,687,000		$ 4,687,000
Plan Expiring Nov 3, 2015 [Member]
Stock Repurchase Plans
Repurchase of common stock, shares		577,000		609,000
Repurchase of common stock, net		$ 1,515,000		$ 1,614,000