Lendway (LDWY) 10-K 15 Mar 18 2017 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2017	Mar. 12, 2018	Jun. 30, 2017
Document and Entity Information
Entity Registrant Name	INSIGNIA SYSTEMS INC/MN
Entity Central Index Key	875,355
Document Type	10-K
Document Period End Date	Dec. 31, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$ 7,344,000
Entity Common Stock, Shares Outstanding		11,962,996
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	FY

BALANCE SHEETS

BALANCE SHEETS - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Current Assets:
Cash and cash equivalents	$ 4,695,000	$ 12,267,000
Accounts receivable, net	11,864,000	9,879,000
Inventories	301,000	325,000
Income tax receivable	360,000	775,000
Prepaid expenses and other	415,000	689,000
Total Current Assets	17,635,000	23,935,000
Other Assets:
Property and equipment, net	2,670,000	2,430,000
Other, net	1,383,000	1,863,000
Total Assets	21,688,000	28,228,000
Accounts payable:
Cash dividends declared ($0.70 per share)	0	8,233,000
Other	3,232,000	2,530,000
Accrued liabilities:
Compensation	1,531,000	762,000
Other	667,000	498,000
Deferred revenue	372,000	62,000
Total Current Liabilities	5,802,000	12,085,000
Long-Term Liabilities:
Deferred tax liabilities	245,000	205,000
Accrued income taxes	581,000	554,000
Deferred rent	219,000	275,000
Total Long-Term Liabilities	1,045,000	1,034,000
Commitments and Contingencies
Shareholders' Equity:
Common stock, par value $.01: Authorized shares - 40,000,000, Issued and outstanding shares - 11,914,000 in 2017 and 11,761,000 in 2016	119,000	118,000
Additional paid-in capital	15,361,000	14,991,000
Accumulated deficit	(639,000)	0
Total Shareholders' Equity	14,841,000	15,109,000
Total Liabilities and Shareholders' Equity	$ 21,688,000	$ 28,228,000

BALANCE SHEETS (Parenthetical)

BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2017	Dec. 31, 2016
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	11,914,000	11,761,000
Common stock, shares outstanding	11,914,000	11,761,000

STATEMENTS OF OPERATIONS AND CO

STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Statement of Comprehensive Income [Abstract]
Services revenues	$ 24,911,000	$ 23,144,000
Products revenues	1,519,000	1,768,000
Total Net Sales	26,430,000	24,912,000
Cost of services	16,935,000	16,540,000
Cost of goods sold	1,094,000	1,309,000
Total Cost of Sales	18,029,000	17,849,000
Gross Profit	8,401,000	7,063,000
Operating Expenses:
Selling	3,539,000	3,840,000
Marketing	1,716,000	1,190,000
General and administrative	4,054,000	4,109,000
Total Operating Expenses	9,309,000	9,139,000
Operating Loss	(908,000)	(2,076,000)
Other loss	(1,000)	(24,000)
Loss Before Taxes	(909,000)	(2,100,000)
Income tax benefit	(270,000)	(814,000)
Net Loss	(639,000)	(1,286,000)
Other comprehensive income, net of tax:
Unrealized gain on available for sales securities	0	11,000
Comprehensive Loss	$ (639,000)	$ (1,275,000)
Net loss per share:
Basic	$ (0.06)	$ (0.11)
Diluted	(0.06)	(0.11)
Dividends declared per share	$ 0	$ 0.70
Shares used in calculation of net loss per share:
Basic	11,717,000	11,629,000
Diluted	11,717,000	11,629,000

STATEMENTS OF SHAREHOLDERS' EQU

STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($)	Common Stock [Member]	Additional Paid In Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income [Member]	Total
Balances at Dec. 31, 2015	$ 116,000	$ 17,810,000	$ 6,805,000	$ (11,000)	$ 24,720,000
Balances, shares at Dec. 31, 2015	11,633,000
Issuance of common stock, net	$ 1,000	45,000			46,000
Issuance of common stock, shares	102,000
Repurchase of common stock, net	$ (1,000)	(311,000)			$ (312,000)
Repurchase of common stock, net, shares	(128,000)				(128,000)
Value of stock-based compensation	$ 1,000	203,000			$ 204,000
Value of stock-based compensation, shares	54,000
Restricted stock award issuance	$ 1,000	(1,000)			0
Restricted stock award issuance, shares	100,000
Tax deficiency from stock-based awards		(41,000)			(41,000)
Cash dividends declared ($0.70 per share)		(2,714,000)	(5,519,000)		(8,233,000)
Net loss			(1,286,000)		(1,286,000)
Other comprehensive income, net of tax				11,000	11,000
Balances at Dec. 31, 2016	$ 118,000	14,991,000	0	0	15,109,000
Balances, shares at Dec. 31, 2016	11,761,000
Repurchase of common stock, net					$ 0
Repurchase of common stock, net, shares					0
Repurchase of common stock upon vesting of restricted stock awards and vesting of restricted stock units		(16,000)			$ (16,000)
Repurchase of common stock upon vesting of restricted stock awards and vesting of restricted stock units, shares	21,000
Value of stock-based compensation	$ 1,000	386,000			387,000
Value of stock-based compensation, shares	72,000
Restricted stock award issuance	$ 0				0
Restricted stock award issuance, shares	60,000
Net loss			(639,000)		(639,000)
Balances at Dec. 31, 2017	$ 119,000	$ 15,361,000	$ (639,000)	$ 0	$ 14,841,000
Balances, shares at Dec. 31, 2017	11,914,000

STATEMENTS OF CASH FLOWS

STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Operating Activities:
Net income (loss)	$ (639,000)	$ (1,286,000)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities
Depreciation and amortization	1,348,000	1,450,000
Changes in allowance for doubtful accounts	72,000	62,000
Deferred income tax expense (benefit)	40,000	(35,000)
Stock-based compensation	387,000	204,000
Gain on sale of property and equipment	0	(80,000)
Changes in operating assets and liabilities:
Accounts receivable	(2,057,000)	(1,549,000)
Inventories	24,000	66,000
Income tax receivable	415,000	(774,000)
Prepaid expenses and other	274,000	117,000
Accounts payable	697,000	(885,000)
Accrued liabilities	882,000	(979,000)
Income tax payable	0	(264,000)
Accrued income taxes	27,000	26,000
Tax deficiency from stock-based awards	0	41,000
Deferred revenue	310,000	(102,000)
Net cash provided by (used in) operating activities	1,780,000	(3,988,000)
Investing Activities:
Purchases of property and equipment	(1,159,000)	(1,467,000)
Proceeds received from sale or maturity of investments	0	9,501,000
Proceeds received from sale of property and equipment	0	5,000
Net cash provided by (used in) investing activities	(1,159,000)	8,039,000
Financing Activities:
Cash dividends paid ($0.70 per share)	(8,177,000)	0
Proceeds from issuance of common stock, net	0	46,000
Repurchase of common stock upon vesting of restricted stock awards	(16,000)	0
Tax deficiency from stock-based awards	0	(41,000)
Repurchase of common stock, net	0	(312,000)
Net cash used in financing activities	(8,193,000)	(307,000)
Increase (decrease) in cash and cash equivalents	(7,572,000)	3,744,000
Cash and cash equivalents at beginning of year	12,267,000	8,523,000
Cash and cash equivalents at end of year	4,695,000	12,267,000
Supplemental disclosures for cash flow information:
Cash (refunded) paid during the year for income taxes	(743,000)	238,000
Non-cash investing and financing activities:
Cash dividends declared included in accounts payable	56,000	8,233,000
Purchases of property and equipment included in accounts payable and accrued liabilities	39,000	90,000
Non-cash trade-in value utilized for the purchase of equipment	$ 0	$ 75,000

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2017
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Description of Business . Revenue Recognition Cash and Cash Equivalents Fair Value of Financial Measurements. The hierarchy is divided into three levels. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active and inputs (other than quoted prices) that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability. Categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The Company records certain financial assets and liabilities at their carrying amounts that approximate fair value, based on their short-term nature. These financial assets and liabilities included cash and cash equivalents, accounts receivable and accounts payable. Accounts Receivable. Changes in the Company’s allowance for doubtful accounts are as follows: December 31 2017 2016 Beginning balance $ 141,000 $ 79,000 Bad debt provision 72,000 67,000 Accounts written-off - (5,000 ) Ending balance $ 213,000 $ 141,000 Inventories. December 31 2017 2016 Raw materials $ 68,000 $ 123,000 Work-in-process 10,000 27,000 Finished goods 223,000 175,000 $ 301,000 $ 325,000 In connection with the discontinued sale of The Like Machine, as of December 31, 2016, the Company deemed the value of the on-hand inventory related to The Like Machine to be impaired and recorded a $173,000 increase to the obsolescence reserve. Property and Equipment. Production tooling, machinery and equipment 1 - 6 years Office furniture and fixtures 3 years Computer equipment and software 3 - 5 years Leasehold improvements are amortized over the shorter of the remaining term of the lease or estimated life of the asset. Internally developed software is amortized over the estimated life of the asset, which is five years. Impairment of Long-Lived Assets. Income Taxes Stock-Based Compensation. The expected lives of the options and employee stock purchase plan rights are based on evaluations of historical and expected future employee exercise behavior. The risk-free interest rate is based on the U.S. Treasury rates at the date of grant with maturity dates approximately equal to the expected term at grant date. Volatility is based on historical and expected future volatility of the Company’s stock. The Company has not historically issued any dividends beyond one-time dividends declared in 2011 and 2016 and does not expect to in the future. Forfeitures are estimated at the time of the grant and revised, if necessary, in subsequent periods if actual forfeitures differ from estimates. Advertising Costs. Net Income (Loss) Per Share. Weighted average common shares outstanding for the years ended December 31, 2017 and 2016 were as follows: Year ended December 31 2017 2016 Denominator for basic net loss per share - weighted average shares 11,717,000 11,629,000 Effect of dilutive securities: Stock options, restricted stock units and restricted stock units - - Denominator for diluted net loss per share - weighted average shares 11,717,000 11,629,000 Due to the net losses incurred during the years ended December 31, 2017 and 2016, all stock awards were anti-dilutive for these periods. Use of Estimates. New Accounting Pronouncements. Based on this analysis which is in process of being finalized, the adoption of ASC 606 is not expected to have a material impact on the Company’s financial statements as far as the timing and amount of revenue recognized, however, the Company will provide expanded disclosures as a result of the adoption. The Company will adopt the new standard effective January 1, 2018 using the modified retrospective transition method of adoption to uncompleted contracts. Periods prior to the date of adoption are not retrospectively revised but a cumulative effect of the adoption, will be recognized for the impact of ASC 606 on uncompleted contracts at the date of adoption. We have not yet determined the cumulative effect of the adoption which will be recorded as of January 1, 2018, but expect the cumulative adjustment will not be material based on our analysis completed thus far. The Company has assessed and does not anticipate any material changes to information technology systems, processes, and internal controls to support recognition and disclosure of ASC 606. In the first quarter of 2018, the Company will be revising its revenue recognition accounting policy and expanding revenue disclosures to reflect the requirements of ASC 606, which include disclosures related to the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. Additionally, qualitative and quantitative disclosures are required about customer contracts, significant judgements and assets recognized from the costs to obtain or fulfill a contract. While the Company will provide expanded disclosures as a result of ASC 606, it does not expect this standard to have a material impact on its results of operations and financial condition. In February 2016, the FASB issued Accounting Standards Update (“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. The Company is 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 ): Improvements to Employee Share-Based Payment Accounting

Restructuring

Restructuring	12 Months Ended
	Dec. 31, 2017
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 $163,000 was recorded during the year ended December 31, 2016. The Company recorded $83,000 of this charge within cost of sales and $80,000 within operating expenses in the Company’s statement of operations and comprehensive loss. As of December 31, 2016, $42,000 of the pre-tax restructuring charge was included in accrued compensation, and was paid in 2017.

Selling Arrangement

Selling Arrangement	12 Months Ended
	Dec. 31, 2017
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 $400,000 for each of the years ended December 31, 2017 and 2016, and is expected to be $400,000 per year over the next three years, and $117,000 in the year ending December 31, 2021, is recorded within cost of services in the Company’s statements of operations and comprehensive loss. The net carrying amount of the selling arrangement is recorded within other assets on the Company’s balance sheet. A summary of the carrying amount of this selling arrangement is as follows as of December 31: 2017 2016 Gross cost $ 4,000,000 $ 4,000,000 Accumulated amortization (2,683,000 ) (2,283,000 ) Net carrying amount $ 1,317,000 $ 1,717,000

Retail Access and Distribution

Retail Access and Distribution Agreement	12 Months Ended
	Dec. 31, 2017
Retail Access and Distribution Agreement
Retail Access and Distribution Agreement	On February 21, 2014, the Company and Valassis Sales and Marketing Services, Inc. (“Valassis”) entered into the Retail Access and Distribution Agreement (the “New Valassis Agreement”) that replaced all prior agreements. As a result of this new agreement, Valassis was no longer a reseller of the Company’s POPSign and the Company regained access to all CPG manufacturers for the sale of POPSigns. The net amount paid to Valassis by the Company was $250,000, which was being amortized over the original term of the New Valassis Agreement, which was approximately four years. As of December 31, 2017, this agreement has been fully amortized. Amortization expense related to this agreement was approximately $64,000 during both the years ended December 31, 2017 and December 31, 2016.

Property and Equipment

Property and Equipment	12 Months Ended
	Dec. 31, 2017
Property, Plant and Equipment [Abstract]
Property and Equipment	Property and equipment consists of the following at December 31: Year ended December 31 2017 2016 Property and Equipment: Production tooling, machinery and equipment $ 4,003,000 $ 4,000,000 Office furniture and fixtures 325,000 322,000 Computer equipment and software 2,680,000 1,301,000 Leasehold improvements 577,000 577,000 Construction in-progress 206,000 523,000 7,791,000 6,723,000 Accumulated depreciation and amortization (5,121,000 ) (4,293,000 ) Net Property and Equipment $ 2,670,000 $ 2,430,000 Depreciation expense for the years ended December 31, 2017 and 2016 was $868,000 and $785,000, respectively.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Operating Leases In 2015, in connection with our amendment on this lease, the Company incurred costs related to the build-out of its facility and other relocation costs, as well as costs for new furniture and equipment, a portion of which was funded by a tenant allowance of $275,000, which was recorded as deferred rent and other assets as of December 31, 2015 and payment was received in 2016. The balance of deferred rent as of December 31, 2017 and 2016, includes the impact of the straight-line expense of the lease payments and the amortization of the tenant allowance. Minimum future lease obligations under the lease, excluding operating costs, are approximately as follows for the years ending December 31: 2018 $ 211,000 2019 217,000 2020 222,000 2021 57,000 Retailer Agreements Aggregate commitment amounts under agreements with retailers are approximately as follows for the years ending December 31: 2018 $ 2,933,000 2019 1,448,000 2020 1,240,000 2021 710,000 On an ongoing basis the Company negotiates renewals of various retailer agreements, retailer contracts generally have terms of one to three years. Upon the completion of future contract renewals, the annual commitment amounts for 2018 and thereafter are expected to be in excess of the amounts above. Legal .

Shareholders' Equity

Shareholders' Equity	12 Months Ended
	Dec. 31, 2017
Stockholders' Equity Note [Abstract]
Shareholders' Equity	Stock-Based Compensation The following table summarizes the stock-based compensation expense that was recognized in the Company’s statements of operations and comprehensive loss for the years ended December 31, 2017 and 2016: Year ended December 31 2017 2016 Cost of sales $ 52,000 $ 28,000 Selling 75,000 52,000 Marketing 51,000 1,000 General and administrative 209,000 123,000 $ 387,000 $ 204,000 The Company uses the Black-Scholes option pricing model to estimate fair value of stock-based awards with the following weighted average assumptions: 2017 2016 Stock Options: Expected life (years) 2.0 2.5 Expected volatility 46 % 41 % Dividend yield 0 % 0 % Risk-free interest rate 1.0 % 1.0 % 2017 2016 Stock Purchase Plan Options: Expected life (years) 1.0 1.0 Expected volatility 51 % 31 % Dividend yield 0 % 0 % Risk-free interest rate 0.9 % 0.6 % The Company uses the graded attribution method to recognize expense for unvested stock-based awards. The amount of stock-based compensation recognized during a period is based on the value of the awards that are ultimately expected to vest. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company re-evaluates the forfeiture rate annually and adjusts it as necessary. Stock Options, Restricted Stock, Restricted Stock Units, and Other Stock-Based Compensation Awards In 2015, the 2013 Plan was amended to increase the total number of shares available to a total of 1,100,000 shares. Under the terms of the 2013 Plan, as amended, the Company may grant up to 1,100,000 awards in a variety of instruments including stock options, restricted stock and restricted stock units to employees, consultants and directors generally at an exercise price at or above 100% of fair market value at the close of business on the date of grant. Stock options expire 10 years after the date of grant and generally vest over three years. The Company issues new shares of common stock upon grant of restricted stock, when stock options are exercised, and when restricted stock units are vested and/or settled. In 2016, our Board of Directors amended the 2003 Incentive Stock Option Plan (the “2003 Plan”) and the 2013 Omnibus Stock and Incentive Plan (the “2013 Plan”) to permit equitable adjustments to outstanding awards in the event of a special dividend. In March 2017, the Board of Directors approved the modification of all outstanding stock option awards to provide option holders with substantially equivalent economic value after the effect of the dividend. The modification resulted in the grant of options to purchase 150,474 additional shares. Total stock-based compensation expense for the modification was approximately $79,000, which was recorded during 2017. The following table summarizes activity under the 2003 and 2013 Plans: Plan Shares Available for Grant Plan Options Outstanding Weighted Average Exercise Price Per Share Aggregate Intrinsic Value Balance at January 1, 2016 477,534 895,161 $ 2.73 Shares reserved — — Stock awards granted ( 54,036 ) — Restricted stock units and awards granted ( 189,875 ) — Stock options granted ( 20,000 ) 20,000 2.90 Stock options exercised — ( 227,833 ) 1.72 $ 143,531 Cancelled or forfeited - 2013 Plan options 237,500 ( 237,500 ) 2.86 Cancelled or forfeited - 2013 Plan restricted stock and restricted stock units 50,499 — 2.72 Cancelled or forfeited - 2003 Plan options — ( 30,666 ) 3.22 Balance at December 31, 2016 501,622 419,162 3.18 Shares reserved — — Options granted for modification ( 61,814 ) 150,474 Stock awards granted ( 72,115 ) — Restricted stock units and awards granted ( 203,424 ) — Stock options granted — — Stock options exercised — — Cancelled or forfeited - 2013 Plan options 103,349 ( 103,349 ) 2.20 Cancelled or forfeited - 2013 Plan restricted stock and restricted stock units 29,382 — 2.01 Cancelled or forfeited - 2003 Plan options — ( 99,941 ) 2.20 Balance at December 31, 2017 297,000 366,346 2.41 The number of options exercisable under the Plans was: December 31, 2017 366,346 December 31, 2016 381,836 The following table summarizes information about the stock options outstanding at December 31, 2017: Options Outstanding Options Exercisable Ranges of Number Outstanding Weighted Average Weighted Average Exercise Price Per Share Number Exercisable Weighted Average Exercise Price Per Share $ 1.18 - $2.04 94,485 4.57 years $ 1.35 94,485 $ 1.35 $ 2.05 - $3.09 215,848 4.83 years 2.46 215,848 2.46 $ 4.02 56,013 2.40 years 4.02 56,016 4.02 366,346 4.39 years $ 2.41 366,346 $ 2.41 Options outstanding under the Plans expire at various dates during the period from May 2018 through June 2025. Options outstanding at December 31, 2017 had an aggregate intrinsic value of $453. Options exercisable at December 31, 2017 had a weighted average remaining life of 4.39 years and an aggregate intrinsic value of $453. The weighted average grant-date fair value of options granted during the year ended December 31, 2016 was $0.56. The Company granted shares of common stock to the non-employee members of our Board of Directors, pursuant to the 2013 Plan. The total number of shares granted to the non-employee directors was 72,115 and 54,036 during the years ended December 31, 2017 and 2016, respectively. The shares were issued at a weighted average value of $1.04 per share in 2017 and $2.19 per share in 2016, based on the stock price on the date of grant, for a total value and expense of $75,000 in 2017 and a total value of $119,000 in 2016, of which $109,000 is included in stock-based compensation expense for the year ended December 31, 2016. During the year ended December 31, 2017, the Company issued 60,000 shares of restricted stock under the 2013 Plan. The shares underlying the award were assigned a value of $1.09 per share, which was the closing price of our common stock on the date of grant, and are scheduled to vest over the two years following the date of grant. During the year ended December 31, 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. During the year ended December 31, 2016, the Company issued 21,875 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 offered during the year ended December 31, 2017. During the year ended December 31, 2017, the Company issued 143,424 restricted stock units under the 2013 Plan. The units were assigned a weighted average value of $1.13 per share, based on the stock price on the date of the grant, and vest and settle in shares of common stock on a 1:1 basis over two years. During the year ended December 31, 2016, the Company issued 68,000 restricted stock units under the 2013 Plan. The units were assigned a weighted average value of $2.20 per share, based on the stock price on the date of the grant, and vest over two years. Restricted stock and restricted stock unit transactions during the years ended December 31, 2017 and 2016 are summarized as follows: Number of Shares Weighted average grant date fair value Unvested shares at January 1, 2016 88,666 $ 2.72 Granted 189,875 2.11 Vested (23,167 ) 2.68 Forfeited or surrendered (50,499 ) 2.72 Unvested shares at December 31, 2016 204,875 $ 2.16 Granted 203,424 1.12 Vested (56,438 ) 1.05 Forfeited or surrendered (29,382 ) 2.01 Unvested shares at December 31, 2017 322,479 $ 1.69 As of December 31, 2017, there was approximately $294,288 of total unrecognized compensation costs related to restricted stock and restricted stock units, which is expected to be recognized over a weighted average period of 1.5 years. Employee Stock Purchase Plan. Stock Repurchase Plans. On October 30, 2015, the Board authorized the repurchase of up to $5,000,000 of the Company’s common stock on or before October 30, 2017. The plan allowed the repurchases to be made in open market or privately negotiated transactions. The plan did not obligate the Company to repurchase any particular number of shares. For the year ended December 31, 2016, the Company repurchased approximately 128,000 shares at a total cost of $312,000. There were no share repurchases under the plan during 2017. Dividends.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Income Taxes	Income tax benefit consists of the following: Year Ended December 31 2017 2016 Current taxes - Federal $ (316,000 ) $ (729,000 ) Current taxes - State 6,000 (50,000 ) Deferred taxes - Federal (23,000 ) 1,000 Deferred taxes - State 63,000 (36,000 ) Income tax benefit $ (270,000 ) $ (814,000 ) The actual tax benefit attributable to income before taxes differs from the expected tax benefit computed by applying the U.S. federal corporate income tax rate of 34% as follows: Year Ended December 31 2017 2016 Federal statutory rate 34.0 % 34.0 % Stock-based awards (7.0 ) 2.1 State taxes 1.5 6.3 Other permanent differences (1.8 ) (0.8 ) Impact of uncertain tax positions (3.0 ) (1.2 ) Valuation allowance (8.5 ) (1.5 ) Tax rate change 14.7 - Other (0.2 ) (0.1 ) Effective federal income tax rate 29.7 % 38.8 % Components of resulting noncurrent deferred tax assets (liabilities) are as follows: As of December 31 2017 2016 Deferred tax assets Accrued expenses $ 183,000 $ 171,000 Inventory reserve 42,000 65,000 Stock-based awards 52,000 53,000 Reserve for bad debts 50,000 51,000 Net operating loss and credit carryforwards 61,000 26,000 Other 25,000 38,000 Valuation allowance (108,000 ) (31,000 ) Total deferred tax assets $ 305,000 $ 373,000 Deferred tax liabilities Depreciation $ (465,000 ) $ (400,000 ) Prepaid expenses (85,000 ) (175,000 ) Prepaid compensation - (3,000 ) Total deferred tax liabilities (550,000 ) (578,000 ) Net deferred income tax liabilities $ (245,000 ) $ (205,000 ) The Company evaluates all significant available positive and negative evidence, including the existence of losses in prior years and its forecast of future taxable income, in assessing the need for a valuation allowance. The underlying assumptions the Company uses in forecasting future taxable income require significant judgment and take into account the Company’s recent performance. The change in the valuation allowance for the years ended December 31, 2017 and 2016 was $77,000 and $31,000, respectively. The valuation allowance as of December 31, 2017 and 2016 was the result of certain capital losses and at December 31, 2017 includes state income tax credits and state net operating losses carried forward which the Company does not believe are more likely than not to be realized. The Company has recorded a liability of $581,000 and $554,000 for uncertain tax positions taken in tax returns in previous years as of December 31, 2017 and 2016, respectively. This liability is reflected as accrued income taxes on the Company’s balance sheets. The Company files income tax returns in the United States and numerous state and local tax jurisdictions. Tax years 2013 and forward are open for examination and assessment by the Internal Revenue Service. With limited exceptions, tax years prior to 2013 are no longer open in major state and local tax jurisdictions. The Company does not anticipate that the total unrecognized tax benefits will change significantly prior to December 31, 2018. A reconciliation of the beginning and ending amount of the liability for uncertain tax positions is as follows: Balance at January 1, 2016 $ 528,000 Decreases due to current year positions (2,000 ) Increases due to interest 28,000 Balance at December 31, 2016 554,000 Increases due to interest 27,000 Balance at December 31, 2017 $ 581,000

Employee Benefit Plans

Employee Benefit Plans	12 Months Ended
	Dec. 31, 2017
Retirement Benefits [Abstract]
Employee Benefit Plans	The Company sponsors a Retirement Profit Sharing and Savings Plan under Section 401(k) of the Internal Revenue Code. The plan allows employees to defer up to 50% of their wages, subject to Federal limitations, on a pre-tax basis through contributions to the plan. During the years ended December 31, 2017 and 2016, the Company made matching contributions of $58,000 and $55,000, respectively.

Concentrations

Concentrations	12 Months Ended
	Dec. 31, 2017
Risks and Uncertainties [Abstract]
Concentrations	Major Customers 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. Export Sales

Quarterly Financial Data

Quarterly Financial Data	12 Months Ended
	Dec. 31, 2017
Quarterly Financial Information Disclosure [Abstract]
Quarterly Financial Data	Quarterly data for the years ended December 31, 2017 and 2016 was as follows: Year Ended December 31, 2017 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Net sales $ 4,767,000 $ 5,849,000 $ 7,723,000 $ 8,091,000 Gross profit 629,000 1,498,000 2,743,000 3,531,000 Net income (loss) (1,191,000 ) (534,000 ) 451,000 635,000 Net income (loss) per share: Basic $ (0.10 ) $ (0.05 ) $ 0.04 $ 0.05 Diluted $ (0.10 ) $ (0.05 ) $ 0.04 $ 0.05 Year Ended December 31, 2016 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Net sales $ 6,078,000 $ 6,617,000 $ 6,469,000 $ 5,748,000 Gross profit 1,967,000 2,116,000 2,000,000 980,000 Net loss (322,000 ) (87,000 ) (167,000 ) (710,000 ) Net loss per share: Basic $ (0.03 ) $ (0.01 ) $ (0.01 ) $ (0.06 ) Diluted $ (0.03 ) $ (0.01 ) $ (0.01 ) $ (0.06 )

Summary of Significant Accoun18

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2017
Accounting Policies [Abstract]
Description of Business	Insignia Systems, Inc. (the “Company”) markets in-store advertising products, programs and services to retailers and consumer packaged goods manufacturers. The Company operates in a single reportable segment. The Company’s primary products include the Insignia Point-of-Purchase Services (POPS®) and freshADSsm, in-store marketing program, and laser printable cardstock and label supplies. In December 2016, the Company decided to discontinue the sale of The Like MachineTM. Revenue from The Like Machine was not significant in 2016.
Revenue Recognition	Revenues are recognized by the Company when persuasive evidence of an arrangement exists, shipment has occurred, the price is fixed, and collectability is reasonably assured. The Company recognizes revenue from Insignia POPSigns and freshADS ratably over the period of service. The Company recognizes revenue related to equipment and sign card sales at the time the products are shipped to customers. Revenue associated with maintenance agreements is recognized ratably over the life of the contract. Revenue that has been billed and not yet earned is reflected as deferred revenue on the balance sheet. We account for taxes collected for customers on a net basis.
Cash and Cash Equivalents	The Company considers all highly liquid investments with an original maturity date of three months or less to be cash equivalents. Cash equivalents are stated at cost, which approximates fair value. At December 31, 2017, $4,846,000 was invested in an insured sweep account. At December 31, 2016, $11,103,000 was invested in an insured cash sweep account and $1,164,000 was invested in a money market fund. The balances in cash accounts, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash and cash equivalents. Amounts held in checking accounts and in insured cash sweep accounts during the years ended December 31, 2017 and 2016 were fully insured under the Federal Deposit Insurance Corporation.
Fair Value of Financial Measurements	Fair value is defined as the exit price, or the amount that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants as of the measurement date. ASC 820-10 also establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs market participants would use in valuing the asset or liability, developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect management’s assumptions about the factors market participants would use in valuing the asset or liability developed based upon the best information available in the circumstances. The hierarchy is divided into three levels. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active and inputs (other than quoted prices) that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability. Categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The Company records certain financial assets and liabilities at their carrying amounts that approximate fair value, based on their short-term nature. These financial assets and liabilities included cash and cash equivalents, accounts receivable and accounts payable.
Accounts Receivable	The majority of the Company’s accounts receivable is due from companies in the consumer-packaged goods industry. Credit is extended based on evaluation of a customer’s financial condition and, generally, collateral is not required. Accounts receivable are due within 30-150 days and are stated at amounts due from customers, net of an allowance for doubtful accounts. Accounts receivable outstanding longer than the contractual payment terms are considered past due. The Company determines its allowance by considering a number of factors, including the length of time trade accounts receivable are past due, the Company’s previous loss history, the customer’s current ability to pay its obligation to the Company, and the condition of the general economy and the industry as a whole. The Company writes-off accounts receivable when they become uncollectible, and payments subsequently received on such receivables are credited to the allowance for doubtful accounts. Changes in the Company’s allowance for doubtful accounts are as follows: December 31 2017 2016 Beginning balance $ 141,000 $ 79,000 Bad debt provision 72,000 67,000 Accounts written-off - (5,000 ) Ending balance $ 213,000 $ 141,000
Inventories	Inventories are primarily comprised of parts and supplies for the Impulse machine, sign cards, and roll stock. Inventory is valued at the lower of cost or market using the first-in, first-out (FIFO) method, and consists of the following: December 31 2017 2016 Raw materials $ 68,000 $ 123,000 Work-in-process 10,000 27,000 Finished goods 223,000 175,000 $ 301,000 $ 325,000 In connection with the discontinued sale of The Like Machine, as of December 31, 2016, the Company deemed the value of the on-hand inventory related to The Like Machine to be impaired and recorded a $173,000 increase to the obsolescence reserve.
Property and Equipment	Property and equipment is recorded at cost. Significant additions or improvements extending asset lives are capitalized, while repairs and maintenance are charged to expense when incurred. Internally developed software is capitalized upon completion of preliminary project stage and when it is probable the project will be completed. Expenditures are capitalized for all development activities, while expenditures related to planning, training, and maintenance are expensed. Depreciation is provided in amounts sufficient to relate the cost of assets to operations over their estimated useful lives. The straight-line method of depreciation is used for financial reporting purposes and accelerated methods are used for tax purposes. Estimated useful lives of the assets are as follows: Production tooling, machinery and equipment 1 - 6 years Office furniture and fixtures 3 years Computer equipment and software 3 - 5 years Leasehold improvements are amortized over the shorter of the remaining term of the lease or estimated life of the asset. Internally developed software is amortized over the estimated life of the asset, which is five years.
Impairment of Long-Lived Assets	The Company records impairment losses on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying amount. Impaired assets are then recorded at their estimated fair value. There were no material impairment losses during the years ended December 31, 2017 and 2016.
Income Taxes	Income taxes are accounted for under the liability method. Deferred income taxes are provided for temporary differences between the financial reporting and tax basis of assets and liabilities. Deferred taxes are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or the entire deferred tax asset will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of the enactment. It is the Company’s policy to provide for uncertain tax positions and the related interest and penalties based upon management’s assessment of whether a tax benefit is more likely than not to be sustained upon examination by tax authorities. The Company recognizes interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense (benefit).
Stock-Based Compensation	The Company measures and recognizes compensation expense for all stock-based payments at fair value. Restricted stock units and awards are valued at the closing market price of the Company’s stock date of the grant. We use the Black-Scholes option pricing model to determine the weighted average fair value of options and employee stock purchase plan rights. The determination of fair value of share-based payment awards on the date of grant using an option-pricing model is affected by our stock price as well as by assumptions regarding a number of complex and subjective variables. These variables include, but are not limited to, the expected stock price volatility over the term of the awards, and actual and projected employee stock option exercise behaviors. The expected lives of the options and employee stock purchase plan rights are based on evaluations of historical and expected future employee exercise behavior. The risk-free interest rate is based on the U.S. Treasury rates at the date of grant with maturity dates approximately equal to the expected term at grant date. Volatility is based on historical and expected future volatility of the Company’s stock. The Company has not historically issued any dividends beyond one-time dividends declared in 2011 and 2016 and does not expect to in the future. Forfeitures are estimated at the time of the grant and revised, if necessary, in subsequent periods if actual forfeitures differ from estimates.
Advertising Costs	Advertising costs are charged to operations as incurred. Advertising expenses were approximately $59,000 and $46,000 during the years ended December 31, 2017 and 2016, respectively.
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 dilutive effects of stock options and restricted stock units. Diluted net income (loss) per share gives effect to all diluted potential common shares outstanding during the year. Weighted average common shares outstanding for the years ended December 31, 2017 and 2016 were as follows: Year ended December 31 2017 2016 Denominator for basic net loss per share - weighted average shares 11,717,000 11,629,000 Effect of dilutive securities: Stock options, restricted stock units and restricted stock units - - Denominator for diluted net loss per share - weighted average shares 11,717,000 11,629,000 Due to the net losses incurred during the years ended December 31, 2017 and 2016, all stock awards were anti-dilutive for these periods.
Use of Estimates
New Accounting Pronouncements	Based on this analysis which is in process of being finalized, the adoption of ASC 606 is not expected to have a material impact on the Company’s financial statements as far as the timing and amount of revenue recognized, however, the Company will provide expanded disclosures as a result of the adoption. The Company will adopt the new standard effective January 1, 2018 using the modified retrospective transition method of adoption to uncompleted contracts. Periods prior to the date of adoption are not retrospectively revised but a cumulative effect of the adoption, will be recognized for the impact of ASC 606 on uncompleted contracts at the date of adoption. We have not yet determined the cumulative effect of the adoption which will be recorded as of January 1, 2018, but expect the cumulative adjustment will not be material based on our analysis completed thus far. The Company has assessed and does not anticipate any material changes to information technology systems, processes, and internal controls to support recognition and disclosure of ASC 606. In the first quarter of 2018, the Company will be revising its revenue recognition accounting policy and expanding revenue disclosures to reflect the requirements of ASC 606, which include disclosures related to the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. Additionally, qualitative and quantitative disclosures are required about customer contracts, significant judgements and assets recognized from the costs to obtain or fulfill a contract. While the Company will provide expanded disclosures as a result of ASC 606, it does not expect this standard to have a material impact on its results of operations and financial condition. In February 2016, the FASB issued Accounting Standards Update (“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 Accoun19

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2017
Accounting Policies [Abstract]
Schedule Of Allowance For Doubtful Accounts	December 31 2017 2016 Beginning balance $ 141,000 $ 79,000 Bad debt provision 72,000 67,000 Accounts written-off - (5,000 ) Ending balance $ 213,000 $ 141,000
Schedule Of Inventories	December 31 2017 2016 Raw materials $ 68,000 $ 123,000 Work-in-process 10,000 27,000 Finished goods 223,000 175,000 $ 301,000 $ 325,000
Schedule Of Estimated Useful Lives	Production tooling, machinery and equipment 1 - 6 years Office furniture and fixtures 3 years Computer equipment and software 3 - 5 years
Schedule Of Weighted Average Common Shares Outstanding	Year ended December 31 2017 2016 Denominator for basic net loss per share - weighted average shares 11,717,000 11,629,000 Effect of dilutive securities: Stock options, restricted stock units and restricted stock units - - Denominator for diluted net loss per share - weighted average shares 11,717,000 11,629,000

Selling Arrangement (Tables)

Selling Arrangement (Tables)	12 Months Ended
	Dec. 31, 2017
Selling Arrangement
Summary of the Carrying Amount of the Selling Arrangement	2017 2016 Gross cost $ 4,000,000 $ 4,000,000 Accumulated amortization (2,683,000 ) (2,283,000 ) Net carrying amount $ 1,317,000 $ 1,717,000

Property and Equipment (Tables)

Property and Equipment (Tables)	12 Months Ended
	Dec. 31, 2017
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment	Year ended December 31 2017 2016 Property and Equipment: Production tooling, machinery and equipment $ 4,003,000 $ 4,000,000 Office furniture and fixtures 325,000 322,000 Computer equipment and software 2,680,000 1,301,000 Leasehold improvements 577,000 577,000 Construction in-progress 206,000 523,000 7,791,000 6,723,000 Accumulated depreciation and amortization (5,121,000 ) (4,293,000 ) Net Property and Equipment $ 2,670,000 $ 2,430,000

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Schedule of Minimum Future Lease Obligations	2018 $ 211,000 2019 217,000 2020 222,000 2021 57,000
Schedule of Aggregate Commitment Amounts	2018 $ 2,933,000 2019 1,448,000 2020 1,240,000 2021 710,000

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)	12 Months Ended
	Dec. 31, 2017
Stockholders' Equity Note [Abstract]
Summary of Stock-Based Compensation Expense	Year ended December 31 2017 2016 Cost of sales $ 52,000 $ 28,000 Selling 75,000 52,000 Marketing 51,000 1,000 General and administrative 209,000 123,000 $ 387,000 $ 204,000
Schedule of Weighted Average Assumptions	2017 2016 Stock Options: Expected life (years) 2.0 2.5 Expected volatility 46 % 41 % Dividend yield 0 % 0 % Risk-free interest rate 1.0 % 1.0 % 2017 2016 Stock Purchase Plan Options: Expected life (years) 1.0 1.0 Expected volatility 51 % 31 % Dividend yield 0 % 0 % Risk-free interest rate 0.9 % 0.6 %
Summary of Activity Under Stock Option Plans	Plan Shares Available for Grant Plan Options Outstanding Weighted Average Exercise Price Per Share Aggregate Intrinsic Value Balance at January 1, 2016 477,534 895,161 $ 2.73 Shares reserved — — Stock awards granted ( 54,036 ) — Restricted stock units and awards granted ( 189,875 ) — Stock options granted ( 20,000 ) 20,000 2.90 Stock options exercised — ( 227,833 ) 1.72 $ 143,531 Cancelled or forfeited - 2013 Plan options 237,500 ( 237,500 ) 2.86 Cancelled or forfeited - 2013 Plan restricted stock and restricted stock units 50,499 — 2.72 Cancelled or forfeited - 2003 Plan options — ( 30,666 ) 3.22 Balance at December 31, 2016 501,622 419,162 3.18 Shares reserved — — Options granted for modification ( 61,814 ) 150,474 Stock awards granted ( 72,115 ) — Restricted stock units and awards granted ( 203,424 ) — Stock options granted — — Stock options exercised — — Cancelled or forfeited - 2013 Plan options 103,349 ( 103,349 ) 2.20 Cancelled or forfeited - 2013 Plan restricted stock and restricted stock units 29,382 — 2.01 Cancelled or forfeited - 2003 Plan options — ( 99,941 ) 2.20 Balance at December 31, 2017 297,000 366,346 2.41
Schedule Of The Number Of Options Exercisable	December 31, 2017 366,346 December 31, 2016 381,836
Summary Of Information About Stock Options Outstanding	Options Outstanding Options Exercisable Ranges of Number Outstanding Weighted Average Weighted Average Exercise Price Per Share Number Exercisable Weighted Average Exercise Price Per Share $ 1.18 - $2.04 94,485 4.57 years $ 1.35 94,485 $ 1.35 $ 2.05 - $3.09 215,848 4.83 years 2.46 215,848 2.46 $ 4.02 56,013 2.40 years 4.02 56,016 4.02 366,346 4.39 years $ 2.41 366,346 $ 2.41
Summary of Restricted Stock and Restricted Stock Units	Number of Shares Weighted average grant date fair value Unvested shares at January 1, 2016 88,666 $ 2.72 Granted 189,875 2.11 Vested (23,167 ) 2.68 Forfeited or surrendered (50,499 ) 2.72 Unvested shares at December 31, 2016 204,875 $ 2.16 Granted 203,424 1.12 Vested (56,438 ) 1.05 Forfeited or surrendered (29,382 ) 2.01 Unvested shares at December 31, 2017 322,479 $ 1.69

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Schedule Of Income Tax Benefit	Year Ended December 31 2017 2016 Current taxes - Federal $ (316,000 ) $ (729,000 ) Current taxes - State 6,000 (50,000 ) Deferred taxes - Federal (23,000 ) 1,000 Deferred taxes - State 63,000 (36,000 ) Income tax benefit $ (270,000 ) $ (814,000 )
Reconciliation Of Effective Income Tax Rate Percentage	Year Ended December 31 2017 2016 Federal statutory rate 34.0 % 34.0 % Stock-based awards (7.0 ) 2.1 State taxes 1.5 6.3 Other permanent differences (1.8 ) (0.8 ) Impact of uncertain tax positions (3.0 ) (1.2 ) Valuation allowance (8.5 ) (1.5 ) Tax rate change 14.7 - Other (0.2 ) (0.1 ) Effective federal income tax rate 29.7 % 38.8 %
Schedule of Resulting Noncurrent Deferred Tax Assets (Liabilities)	As of December 31 2017 2016 Deferred tax assets Accrued expenses $ 183,000 $ 171,000 Inventory reserve 42,000 65,000 Stock-based awards 52,000 53,000 Reserve for bad debts 50,000 51,000 Net operating loss and credit carryforwards 61,000 26,000 Other 25,000 38,000 Valuation allowance (108,000 ) (31,000 ) Total deferred tax assets $ 305,000 $ 373,000 Deferred tax liabilities Depreciation $ (465,000 ) $ (400,000 ) Prepaid expenses (85,000 ) (175,000 ) Prepaid compensation - (3,000 ) Total deferred tax liabilities (550,000 ) (578,000 ) Net deferred income tax liabilities $ (245,000 ) $ (205,000 )
Reconciliation of the Liability for Uncertain Tax Positions	Balance at January 1, 2016 $ 528,000 Decreases due to current year positions (2,000 ) Increases due to interest 28,000 Balance at December 31, 2016 554,000 Increases due to interest 27,000 Balance at December 31, 2017 $ 581,000

Quarterly Financial Data (Table

Quarterly Financial Data (Tables)	12 Months Ended
	Dec. 31, 2017
Quarterly Financial Information Disclosure [Abstract]
Schedule Of Quarterly Financial Data	Year Ended December 31, 2017 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Net sales $ 4,767,000 $ 5,849,000 $ 7,723,000 $ 8,091,000 Gross profit 629,000 1,498,000 2,743,000 3,531,000 Net income (loss) (1,191,000 ) (534,000 ) 451,000 635,000 Net income (loss) per share: Basic $ (0.10 ) $ (0.05 ) $ 0.04 $ 0.05 Diluted $ (0.10 ) $ (0.05 ) $ 0.04 $ 0.05 Year Ended December 31, 2016 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Net sales $ 6,078,000 $ 6,617,000 $ 6,469,000 $ 5,748,000 Gross profit 1,967,000 2,116,000 2,000,000 980,000 Net loss (322,000 ) (87,000 ) (167,000 ) (710,000 ) Net loss per share: Basic $ (0.03 ) $ (0.01 ) $ (0.01 ) $ (0.06 ) Diluted $ (0.03 ) $ (0.01 ) $ (0.01 ) $ (0.06 )

Summary of Significant Accoun26

Summary of Significant Accounting Policies (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Accounting Policies [Abstract]
Beginning balance	$ 141,000	$ 79,000
Bad debt provision	72,000	67,000
Accounts written-off	0	(5,000)
Ending balance	$ 213,000	$ 141,000

Summary of Significant Accoun27

Summary of Significant Accounting Policies (Details 1) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Accounting Policies [Abstract]
Raw materials	$ 68,000	$ 123,000
Work-in-process	10,000	27,000
Finished goods	223,000	175,000
Inventories	$ 301,000	$ 325,000

Summary of Significant Accoun28

Summary of Significant Accounting Policies (Details 2)	12 Months Ended
	Dec. 31, 2017
Tools Dies And Molds [Member] | Minimum [Member]
Estimated Useful lives	1 year
Tools Dies And Molds [Member] | Maximum [Member]
Estimated Useful lives	6 years
Furniture And Fixtures [Member]
Estimated Useful lives	3 years
Computer Equipment and Software [Member] | Minimum [Member]
Estimated Useful lives	3 years
Computer Equipment and Software [Member] | Maximum [Member]
Estimated Useful lives	5 years

Summary of Significant Accoun29

Summary of Significant Accounting Policies (Details 3) - shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Accounting Policies [Abstract]
Denominator for basic net loss per share - weighted average shares	11,717,000	11,629,000
Effect of dilutive securities: Stock options, restricted stock and restricted stock units	0	0
Denominator for diluted net loss per share - weighted average shares	11,717,000	11,629,000

Summary of Significant Accoun30

Summary of Significant Accounting Policies (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Accounting Policies [Abstract]
Insured cash sweep account	$ 4,846,000	$ 11,103,000
Investment in money market fund		1,164,000
Impairment charge recorded to the obsolescence reserve		173,000
Impairment losses on long-lived assets		0
Advertising expense	$ 59,000	$ 46,000

Restructuring (Details Narrativ

Restructuring (Details Narrative)	12 Months Ended
	Dec. 31, 2016USD ($)
Reduction in workforce	12.00%
Pre-tax restructuring charge	$ 163,000
Cost Of Sales [Member]
Pre-tax restructuring charge	83,000
Operating Expenses [Member]
Pre-tax restructuring charge	$ 80,000

Selling Arrangement (Details)

Selling Arrangement (Details) - Customer Contracts [Member] - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Gross cost	$ 4,000,000	$ 4,000,000
Accumulated amortization	(2,683,000)	(2,283,000)
Net carrying amount	$ 1,317,000	$ 1,717,000

Selling Arrangement (Details Na

Selling Arrangement (Details Narrative) - Customer Contracts [Member] - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2011
Payment for arrangement to sell signs			$ 4,000,000
Term of arrangement			10 years
Amortization expense	$ 400,000	$ 400,000
2,018	400,000
2,019	400,000
2,020	400,000
2,021	$ 117,000

Retail Access and Distributio34

Retail Access and Distribution Agreement (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Valassis Sales And Marketing Services Inc [Member]
Marketing and Service Agreement Amortization expense	$ 64,000	$ 64,000

Property and Equipment (Details

Property and Equipment (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Gross Property and Equipment	$ 7,791,000	$ 6,723,000
Accumulated depreciation and amortization	(5,121,000)	(4,293,000)
Net Property and Equipment	2,670,000	2,430,000
Machinery And Equipment [Member]
Property, Plant and Equipment [Line Items]
Gross Property and Equipment	4,003,000	4,000,000
Furniture And Fixtures [Member]
Property, Plant and Equipment [Line Items]
Gross Property and Equipment	325,000	322,000
Computer Equipment and Software [Member]
Property, Plant and Equipment [Line Items]
Gross Property and Equipment	2,680,000	1,301,000
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Gross Property and Equipment	577,000	577,000
Construction In Progress [Member]
Property, Plant and Equipment [Line Items]
Gross Property and Equipment	$ 206,000	$ 523,000

Property and Equipment (Detai36

Property and Equipment (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Property And Equipment Details Narrative
Depreciation expense	$ 868,000	$ 785,000

Commitments and Contingencies37

Commitments and Contingencies (Details)	Dec. 31, 2017USD ($)
Commitments and Contingencies Disclosure [Abstract]
2,018	$ 211,000
2,019	217,000
2,020	222,000
2,021	$ 57,000

Commitments and Contingencies38

Commitments and Contingencies (Details 1)	Dec. 31, 2017USD ($)
Commitments and Contingencies Disclosure [Abstract]
2,018	$ 2,933,000
2,019	1,448,000
2,020	1,240,000
2,021	$ 710,000

Commitments and Contingencies39

Commitments and Contingencies (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Rent expense	$ 150,000	$ 150,000
Fixed and store-based payments	$ 5,203,000	$ 5,376,000

Shareholders' Equity (Details)

Shareholders' Equity (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Stock-based compensation expense	$ 387,000	$ 204,000
Cost Of Sales [Member]
Stock-based compensation expense	52,000	28,000
Selling Expenses [Member]
Stock-based compensation expense	75,000	52,000
Marketing Expenses [Member]
Stock-based compensation expense	51,000	1,000
General And Administrative Expense [Member]
Stock-based compensation expense	$ 209,000	$ 123,000

Shareholders' Equity (Details 1

Shareholders' Equity (Details 1)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Employee Stock Option [Member]
Expected life	2 years	2 years 6 months
Expected volatility	46.00%	41.00%
Dividend yield	0.00%	0.00%
Risk-free interest rate	1.00%	1.00%
Employee Stock [Member]
Expected life	1 year	1 year
Expected volatility	51.00%	31.00%
Dividend yield	0.00%	0.00%
Risk-free interest rate	0.90%	0.60%

Shareholders' Equity (Details 2

Shareholders' Equity (Details 2) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Stock awards granted (in shares)	(72,115)	(54,036)
Restricted stock and restricted stock units granted (in shares)	(203,424)	(189,875)
Employee Stock Option [Member]
Balance at the beginning of the period (in shares)	501,622	477,534
Shares reserved (in shares)	0	0
Options granted for modification (in shares)	(61,814)
Stock awards granted (in shares)	(72,115)	(54,036)
Restricted stock and restricted stock units granted (in shares)	(203,424)	(189,875)
Stock options granted (in shares)	0	(20,000)
Stock options exercised (in shares)	0	0
Balance at the end of the period (in shares)	297,000	501,622
Balance at the beginning of the period (in shares)	419,162	895,161
Options granted for modification (in shares)	150,474
Stock options granted (in shares)	0	20,000
Stock options exercised (in shares)	0	(227,833)
Balance at the end of the period (in shares)	366,346	419,162
Balance at the beginning of the period (in dollars per share)	$ 3.18	$ 2.73
Stock options granted (in dollars per share)		2.90
Stock options exercised (in dollars per share)		1.72
Balance at the end of the period (in dollars per share)	$ 2.41	$ 3.18
Aggregate Intrinsic Value, Stock options exercised (in dollars)		$ 143,531
Employee Stock Option [Member] | Stock Option Plan2013 [Member]
Cancelled or forfeited (in shares)	103,349	237,500
Cancelled or forfeited (in shares)	(103,349)	(237,500)
Cancelled (in dollars per share)	$ 2.20	$ 2.86
Employee Stock Option [Member] | Incentive Stock Option Plan2003 [Member]
Cancelled or forfeited (in shares)	0	0
Cancelled or forfeited (in shares)	(99,941)	(30,666)
Cancelled (in dollars per share)	$ 2.20	$ 3.22
Restricted Stock and Restricted Stock Units [Member] | Stock Option Plan2013 [Member]
Cancelled or forfeited (in shares)	29,382	50,499
Cancelled, restricted stock units (in dollars per share)	$ 2.01	$ 2.72

Shareholders' Equity (Details 3

Shareholders' Equity (Details 3) - shares	Dec. 31, 2017	Dec. 31, 2016
Stockholders' Equity Note [Abstract]
Number Exercisable (in shares)	366,346	381,836

Shareholders' Equity (Details 4

Shareholders' Equity (Details 4) - $ / shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Options Outstanding (in shares)	366,346
Weighted Average Remaining Contractual Life (in years)	4 years 4 months 20 days
Outstanding Weighted Average Exercise Price Per Share (in dollars per share)	$ 2.41
Options Exercisable (in shares)	366,346	381,836
Exercisable Weighted Average Exercise Price Per Share (in dollars per share)	$ 2.41
Exercise Price Range One [Member]
Ranges of Exercise Prices Lower (in dollars per share)	1.18
Ranges of Exercise Prices Upper (in dollars per share)	$ 2.04
Options Outstanding (in shares)	94,485
Weighted Average Remaining Contractual Life (in years)	4 years 6 months 25 days
Outstanding Weighted Average Exercise Price Per Share (in dollars per share)	$ 1.35
Options Exercisable (in shares)	94,485
Exercisable Weighted Average Exercise Price Per Share (in dollars per share)	$ 1.35
Exercise Price Range Two [Member]
Ranges of Exercise Prices Lower (in dollars per share)	2.05
Ranges of Exercise Prices Upper (in dollars per share)	$ 3.09
Options Outstanding (in shares)	215,848
Weighted Average Remaining Contractual Life (in years)	4 years 9 months 29 days
Outstanding Weighted Average Exercise Price Per Share (in dollars per share)	$ 2.46
Options Exercisable (in shares)	215,848
Exercisable Weighted Average Exercise Price Per Share (in dollars per share)	$ 2.46
Exercise Price Range Three [Member]
Exercise Price (in dollars per share)	$ 4.02
Options Outstanding (in shares)	56,013
Weighted Average Remaining Contractual Life (in years)	2 years 4 months 24 days
Outstanding Weighted Average Exercise Price Per Share (in dollars per share)	$ 4.02
Options Exercisable (in shares)	56,016
Exercisable Weighted Average Exercise Price Per Share (in dollars per share)	$ 4.02

Shareholders' Equity (Details 5

Shareholders' Equity (Details 5) - $ / shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Stockholders' Equity Note [Abstract]
Outstanding at the beginning of the period (in shares)	204,875	88,666
Granted (in shares)	203,424	189,875
Vested ( in shares)	(56,438)	(23,167)
Forfeited or surrendered (in shares)	(29,382)	(50,499)
Outstanding at the end of the period (in shares)	322,479	204,875
Beginning balance fair value (in dollars per share)	$ 2.16	$ 2.72
Granted (in dollars per share)	1.12	2.11
Vested (in dollars per share)	1.05	2.68
Forfeited or surrendered (in dollars per share)	2.01	2.72
Ending balance fair value (in dollars per share)	$ 1.69	$ 2.16

Shareholders' Equity (Details N

Shareholders' Equity (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Aggregate intrinsic value of options outstanding	$ 453
Weighted average remaining life of options exercisable	4 years 4 months 20 days
Aggregate intrinsic value of options exercisable	$ 453
Total number of stock awards granted to the Board of Directors (in shares)	72,115	54,036
Shares issue price (in dollars per share)	$ 1.04	$ 2.19
Total value of shares issued	$ 75,000	$ 119,000
Restricted stock (in shares)	203,424	189,875
Restricted stock on the grant date (in dollars per share)	$ 1.12	$ 2.11
Total unrecognized compensation costs related to restricted stock units	$ 294,288
Stock-based compensation expense	$ 387,000	$ 204,000
Repurchase of common stock, shares	0	128,000
Repurchase of common stock, amount	$ 0	$ 312,000
Employee Stock [Member]
Employees purchased shares	48,320	0
Shares are reserved for future employee purchases	85,721
Stock-based compensation expense	$ 29,000	$ 0
Omnibus Stock And Incentive Plan2013 [Member] | Restricted Stock [Member]
Restricted stock (in shares)	60,000	100,000
Restricted stock on the grant date (in dollars per share)	$ 1.09	$ 2.33
Vesting period	2 years	5 years
Omnibus Stock And Incentive Plan2013 [Member] | Performance-Based Restricted Stock Units R S U [Member]
Restricted stock (in shares)		21,875
Performance Based RSU on grant date (in dollars per share)		$ .85
Omnibus Stock And Incentive Plan2013 [Member] | Restricted Stock Units R S U [Member]
Restricted stock (in shares)	143,424	68,000
Restricted stock on the grant date (in dollars per share)	$ 1.13	$ 2.20
Vesting period	2 years	2 years

Income Taxes (Details)

Income Taxes (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Current taxes - Federal	$ (316,000)	$ (729,000)
Current taxes - State	6,000	(50,000)
Deferred taxes - Federal	(23,000)	1,000
Deferred taxes - State	63,000	(36,000)
Income tax benefit	$ (270,000)	$ (814,000)

Income Taxes (Details 1)

Income Taxes (Details 1)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Federal statutory rate	34.00%	34.00%
Stock based awards	(7.00%)	2.10%
State taxes	1.50%	6.30%
Other permanent differences	(1.80%)	(0.80%)
Impact of uncertain tax positions	(3.00%)	(1.20%)
Valuation allowance	(8.50%)	(1.50%)
Tax rate change	14.70%	0.00%
Other	(0.20%)	(0.10%)
Effective federal income tax rate	29.70%	38.80%

Income Taxes (Details 2)

Income Taxes (Details 2) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Deferred Tax Assets:
Accrued expenses	$ 183,000	$ 171,000
Inventory reserve	42,000	65,000
Stock-based awards	52,000	53,000
Reserve for bad debts	50,000	51,000
Net operating loss carryforwards	61,000	26,000
Other	25,000	38,000
Valuation allowance	(108,000)	(31,000)
Total deferred tax assets	305,000	373,000
Deferred Tax Liabilities:
Depreciation	(465,000)	(400,000)
Prepaid expenses	(85,000)	(175,000)
Prepaid compensation	0	(3,000)
Total deferred tax liabilities	(550,000)	(578,000)
Net deferred income tax liabilities	$ (245,000)	$ (205,000)

Income Taxes (Details 3)

Income Taxes (Details 3) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Balance at the beginning of the period	$ 554,000	$ 528,000
Decreases due to current year positions	0	(2,000)
Increases due to interest	27,000	28,000
Balance at the end of the period	$ 581,000	$ 554,000

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Change in the valuation allowance	$ 77,000	$ 31,000
Accrued income taxes	$ 581,000	$ 554,000	$ 528,000

Employee Benefit Plans (Details

Employee Benefit Plans (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Retirement Benefits [Abstract]
Employee contribution percentage	50.00%	50.00%
Matching employer contribution	$ 58,000	$ 55,000

Concentrations (Details Narrati

Concentrations (Details Narrative)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Export sales of net sales	1.00%	1.00%
Sales Revenue Net [Member] | Customer One [Member]
Customer's percentage of net sales	26.00%	33.00%
Accounts Receivable [Member] | Customer One [Member]
Customer's percentage of net sales	29.00%	37.00%
Accounts Receivable [Member] | Customer Two [Member]
Customer's percentage of net sales	12.00%
Accounts Receivable [Member] | Customer Three [Member]
Customer's percentage of net sales	11.00%

Quarterly Financial Data (Detai

Quarterly Financial Data (Details) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Quarterly Financial Information Disclosure [Abstract]
Net sales	$ 8,091,000	$ 7,723,000	$ 5,849,000	$ 4,767,000	$ 5,748,000	$ 6,469,000	$ 6,617,000	$ 6,078,000	$ 26,430,000	$ 24,912,000
Gross profit	3,531,000	2,743,000	1,498,000	629,000	980,000	2,000,000	2,116,000	1,967,000	8,401,000	7,063,000
Net income (loss)	$ 635,000	$ 451,000	$ (534,000)	$ (1,191,000)	$ (710,000)	$ (167,000)	$ (87,000)	$ (322,000)	$ (639,000)	$ (1,286,000)
Net income (loss) per share:
Basic	$ 0.05	$ 0.04	$ (0.05)	$ (0.10)	$ (0.06)	$ (0.01)	$ (0.01)	$ (0.03)	$ (0.06)	$ (0.11)
Diluted	$ 0.05	$ 0.04	$ (0.05)	$ (0.10)	$ (0.06)	$ (0.01)	$ (0.01)	$ (0.03)	$ (0.06)	$ (0.11)