Lendway (LDWY) 10-K 10 Mar 20 2019 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2019	Mar. 02, 2020	Jun. 30, 2019
Document and Entity Information
Entity Registrant Name	INSIGNIA SYSTEMS INC/MN
Entity Central Index Key	0000875355
Document Type	10-K
Document Period End Date	Dec. 31, 2019
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	Non-accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Shell Company	false
Entity Public Float			$ 6,744,000
Entity Common Stock, Shares Outstanding		12,106,689
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY

BALANCE SHEETS

BALANCE SHEETS - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Current Assets:
Cash and cash equivalents	$ 7,510,000	$ 10,160,000
Accounts receivable, net	7,559,000	8,763,000
Inventories	322,000	353,000
Income tax receivable	126,000	127,000
Prepaid expenses and other	375,000	306,000
Total Current Assets	15,892,000	19,709,000
Other Assets:
Property and equipment, net	549,000	3,268,000
Operating lease right-of-use assets	177,000	0
Other, net	372,000	976,000
Total Assets	16,990,000	23,953,000
Accounts payable:
Other	3,036,000	3,334,000
Accrued liabilities:
Compensation	539,000	2,021,000
Other	570,000	701,000
Current portion of operating lease liabilities	212,000	0
Deferred revenue	140,000	302,000
Total Current Liabilities	4,497,000	6,358,000
Long-Term Liabilities:
Deferred tax liabilities	0	504,000
Accrued income taxes	643,000	613,000
Deferred rent	0	158,000
Operating lease liabilities	56,000	0
Total Long-Term Liabilities	699,000	1,275,000
Commitments and Contingencies
Shareholders' Equity:
Common stock, par value $.01: Authorized shares - 40,000,000, Issued and outstanding shares - 12,074,000 in 2019 and 11,840,000 in 2018	121,000	118,000
Additional paid-in capital	15,934,000	15,442,000
Retained earnings (Accumulated deficit)	(4,261,000)	760,000
Total Shareholders' Equity	11,794,000	16,320,000
Total Liabilities and Shareholders' Equity	$ 16,990,000	$ 23,953,000

BALANCE SHEETS (Parenthetical)

BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2019	Dec. 31, 2018
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	12,074,000	11,840,000
Common stock, shares outstanding	12,074,000	11,840,000

STATEMENTS OF OPERATIONS AND CO

STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Statement of Comprehensive Income [Abstract]
Services revenues	$ 20,229,000	$ 31,623,000
Products revenues	1,725,000	1,613,000
Total Net Sales	21,954,000	33,236,000
Cost of services	15,756,000	19,467,000
Cost of goods sold	1,437,000	1,208,000
Total Cost of Sales	17,193,000	20,675,000
Gross Profit	4,761,000	12,561,000
Operating Expenses:
Selling	2,658,000	3,429,000
Marketing	2,394,000	2,674,000
General and administrative	3,324,000	4,626,000
Impairment loss	2,014,000	0
Total Operating Expenses	10,390,000	10,729,000
Operating Income (Loss)	(5,629,000)	1,832,000
Other income (loss)	142,000	51,000
Income (Loss) Before Taxes	(5,487,000)	1,883,000
Income tax expense (benefit)	(466,000)	484,000
Net Income (Loss)	$ (5,021,000)	$ 1,399,000
Net loss per share:
Basic	$ (0.42)	$ 0.12
Diluted	$ (0.42)	$ 0.12
Shares used in calculation of net loss per share:
Basic	11,941,000	11,776,000
Diluted	11,941,000	12,007,000

STATEMENTS OF SHAREHOLDERS' EQU

STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($)	Common Stock	Additional Paid In Capital	Retained Earnings (Accumulated Deficit)	Total
Balances, shares at Dec. 31, 2017	11,914,000
Balances, amount at Dec. 31, 2017	$ 119,000	$ 15,361,000	$ (639,000)	$ 14,841,000
Issuance of common stock, net	$ 1,000	48,000		49,000
Issuance of common stock, net, shares	49,000
Repurchase of common stock, net	$ (2,000)	(296,000)		(298,000)
Repurchase of common stock, net, shares	(164,000)
Repurchase of common stock upon vesting of restricted stock awards and vesting of restricted stock units	$ 0	(81,000)		(81,000)
Repurchase of common stock upon vesting of restricted stock awards and vesting of restricted stock units, shares	(22,000)
Value of stock-based compensation	$ 0	410,000		410,000
Value of stock-based compensation, shares	0
Restricted stock award issuance	$ 0			0
Restricted stock award issuance, shares	63,000
Net income (loss)			1,399,000	1,399,000
Balances, shares at Dec. 31, 2018	11,840,000
Balances, amount at Dec. 31, 2018	$ 118,000	15,442,000	760,000	16,320,000
Issuance of common stock, net	$ 1,000	107,000		108,000
Issuance of common stock, net, shares	107,000
Repurchase of common stock upon vesting of restricted stock awards and vesting of restricted stock units	$ 2,000	(37,000)		(35,000)
Repurchase of common stock upon vesting of restricted stock awards and vesting of restricted stock units, shares	(20,000)
Value of stock-based compensation	$ 0	422,000		422,000
Value of stock-based compensation, shares	0
Restricted stock award issuance	$ 0			0
Restricted stock award issuance, shares	147,000
Net income (loss)			(5,021,000)	(5,021,000)
Balances, shares at Dec. 31, 2019	12,074,000
Balances, amount at Dec. 31, 2019	$ 121,000	$ 15,934,000	$ (4,261,000)	$ 11,794,000

STATEMENTS OF CASH FLOWS

STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Operating Activities:
Net income (loss)	$ (5,021,000)	$ 1,399,000
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	1,647,000	1,167,000
Imapirment loss	2,014,000	0
Changes in allowance for doubtful accounts	43,000	(191,000)
Deferred income tax expense	(504,000)	259,000
Stock-based compensation	422,000	410,000
Gain on sale of property and equipment	0	(35,000)
Changes in operating assets and liabilities:
Accounts receivable	1,161,000	3,292,000
Inventories	31,000	(52,000)
Income tax receivable	1,000	233,000
Prepaid expenses and other	(69,000)	109,000
Accounts payable	(224,000)	95,000
Accrued liabilities	(1,680,000)	463,000
Accrued income taxes	30,000	32,000
Deferred revenue	(162,000)	(70,000)
Net cash provided by operating activities	(2,311,000)	7,111,000
Investing Activities:
Purchases of property and equipment	(398,000)	(1,337,000)
Proceeds from sale of property and equipment	0	35,000
Purchase of held to maturity investments	(4,981,000)	0
Proceeds from sale of held to maturity investments	4,981,000	0
Net cash used in investing activities	(398,000)	(1,302,000)
Financing Activities:
Cash dividends paid ($0.70 per share)	(14,000)	(14,000)
Proceeds from issuance of common stock, net	108,000	49,000
Repurchase of common stock upon vesting of restricted stock awards and vesting of restricted stock units	(35,000)	(81,000)
Repurchase of common stock, net	0	(298,000)
Net cash used in financing activities	59,000	(344,000)
Increase (decrease) in cash and cash equivalents	(2,650,000)	5,465,000
Cash and cash equivalents at beginning of year	10,160,000	4,695,000
Cash and cash equivalents at end of year	7,510,000	10,160,000
Supplemental disclosures for cash flow information:
Cash paid (refunded) during the year for income taxes	8,000	(39,000)
Non-cash investing and financing activities:
Cash dividends declared included in accounts payable	28,000	42,000
Purchases of property and equipment included in accounts payable and accrued liabilities	$ 0	$ 60,000

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2019
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 2019 2018 Beginning balance $ 22,000 $ 213,000 Bad debt provision 47,000 6,000 Accounts written-off (4,000 ) (197,000 ) Ending balance $ 65,000 $ 22,000 Inventories December 31 2019 2018 Raw materials $ 47,000 $ 80,000 Work-in-process 16,000 12,000 Finished goods 259,000 261,000 $ 322,000 $ 353,000 Property and Equipment Production tooling, machinery and equipment 1 - 6 years Office furniture and fixtures 1 - 3 years Computer equipment and software 3 - 5 years Impairment of Long-Lived Assets A hierarchy for inputs used in measuring fair value is in place that distinguishes market data between observable independent market inputs and unobservable market assumptions by the reporting entity. The hierarchy is intended to maximize the use of observable inputs and minimize the use of unobservable inputs by requiring that the most observable inputs be used when available. The Company identified indicators of impairment due to the current year operating loss, cash flows used in operations and the excess of the book value of the Company compared to its market capitalization, which became a significant difference during the last two months of 2019. Due to these indicators of impairment, the Company completed an impairment analysis on its long-lived assets by first reviewing the expected undiscounted cash flows compared to the carrying value over the primary asset’s remaining useful life to determine if further impairment testing was required. The Company prepared an undiscounted cash flow analysis related to its selling agreement (see Note 3) which is a separate asset group and as the undiscounted cash flows exceeded the carrying value, no further impairment testing was required. For the property and equipment asset group, the undiscounted cash flows were less than carrying value and therefore, a fair value assessment was required to determine the amount of the impairment. Due to the nature of the primary asset (internally developed software), the most readily available fair market value related to the asset is the market capitalization of the Company which is considered a level 1 measurement (quoted market price). After allocating the Company’s market capitalization to its working capital, there was no remaining value to allocate to long-lived assets which included the internally developed software recently placed in service. The Company utilized other level 3 inputs to determine the fair value of other tangible long-lived assets, including appraised values of production tooling, machinery and equipment. As a result, the Company recorded a long-lived asset impairment charge totaling $2,014,000 during the 4th quarter 2019. Property and Equipment, net: Balance prior to impairment $ 2,563,000 Impairment charge (2,014,000 ) Ending balance $ 549,000 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, 2019 and 2018 were as follows: Year ended December 31 2019 2018 Denominator for basic net income (loss) per share - weighted average shares 11,941,000 11,776,000 Effect of dilutive securities: Stock options, restricted stock units and restricted stock awards - 231,000 Denominator for diluted net income (loss) per share - weighted average shares 11,941,000 12,007,000 Due to the net loss incurred during the year ended December 31, 2019, all stock awards were anti-dilutive for the period. Options to purchase approximately 284,000 shares of common stock outstanding for the year ended December 31, 2018 were not included in the computation of common stock equivalents because their exercise prices were higher than the average fair market value of the common shares during the year. Restricted stock units of approximately 45,000 shares for the year ended December 31, 2018 were anti-dilutive due to the amount of weighted-average unrecognized compensation related to these grants. Use of Estimates Recently Adopted Accounting Pronouncement “Leases

Investments

Investments	12 Months Ended
	Dec. 31, 2019
Investments [Abstract]
Investments

Revenue Recognition

Revenue Recognition	12 Months Ended
	Dec. 31, 2019
Revenue Recognition [Abstract]
Revenue Recognition	Revenue from Contracts with Customers Performance Obligations Taxes collected from customers and remitted to governmental authorities are excluded from revenue on the net basis of accounting. The Company includes shipping and handling fees in revenues. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in cost of goods sold. Performance Obligations A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account under Topic 606. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. The following is a description of the Company’s performance obligations included in its primary revenue streams and the timing or method of revenue recognition for each: In-Store Signage Solution Services. Each of the individual activities under the Company’s services, including production activities, are inputs to an integrated sign display service. Customers receive and consume the benefits from the promotional displays over the duration of the contracted display cycle. Additionally, the display of the signs does not have an alternative use to the Company and the Company has an enforceable right to payment for services performed to date. As a result, the Company recognizes the transaction price for its POPS service performance obligations as revenue over time. Given the nature of the Company’s performance obligations is to provide a display service over the duration of a specified period or periods, the Company recognizes revenue on a straight-line basis over the display service period as it best reflects the timing of transfer of its POPS services . Other Service Revenues Products . Disaggregation of Revenue In the following table, revenue is disaggregated by major revenue stream and timing of revenue recognition. Year ended December 31, 2019 Services Revenues Products Revenue Total Revenue Timing of revenue recognition: Products and services transferred over time $ 15,172,000 $ - $ 15,172,000 Products and services transferred at a point in time 5,057,000 1,725,000 6,782,000 Total $ 20,229,000 $ 1,725,000 $ 21,954,000 Year ended December 31, 2018 Services Revenues Products Revenue Total Revenue Timing of revenue recognition: Products and services transferred over time $ 28,598,000 $ - $ 28,598,000 Products and services transferred at a point in time 3,025,000 1,613,000 4,638,000 Total $ 31,623,000 $ 1,613,000 $ 33,236,000 Contract Costs Sales commissions that are paid to internal or external sales representatives are eligible for capitalization as they are incremental costs that would not have been incurred without entering into a specific sales arrangement and are recoverable through the expected margin on the transaction. The Company is applying the practical expedient in Accounting Standards Codification 340-40-25-4 that allows the incremental costs of obtaining a contract to be recorded as an expense when incurred when the amortization period of the asset that would have otherwise been recognized is one year or less. These costs are included in selling expenses. Deferred Revenue Significant changes in deferred revenue during the period are as follows: Balance at December 31, 2018 $ 302,000 Reclassification of beginning deferred revenue to revenue, as a result of performance obligations satisfied (302,000 ) Cash received in advance and not recognized as revenue 140,000 Balance at December 31, 2019 $ 140,000 Transaction Price Allocated to Remaining Performance Obligations The Company applies the practical expedient in paragraph 606-10-50-14 and does not disclose information about remaining performance obligations that have original expected durations of one year or less, which reflect the majority of its performance obligations. This practical expedient is being applied to arrangements for certain incomplete services and unshipped custom signage materials. At December 31, 2019, there were no contracts with an expected duration of greater than one year.

Selling Arrangement

Selling Arrangement	12 Months Ended
	Dec. 31, 2019
Selling Arrangement
Selling Arrangement	2019 2018 Gross cost $ 4,000,000 $ 4,000,000 Accumulated amortization (3,683,000 ) (3,083,000 ) Net carrying amount $ 317,000 $ 917,000

Property and Equipment

Property and Equipment	12 Months Ended
	Dec. 31, 2019
Property, Plant and Equipment [Abstract]
Property and Equipment	Year ended December 31 2019 2018 Property and Equipment: Production tooling, machinery and equipment $ 3,685,000 $ 3,694,000 Office furniture and fixtures 393,000 385,000 Computer equipment and software 1,426,000 2,743,000 Leasehold improvements - 577,000 Construction in-progress - 1,179,000 5,504,000 8,578,000 Accumulated depreciation and amortization (4,955,000 ) (5,310,000 ) Net Property and Equipment $ 549,000 $ 3,268,000 Depreciation expense for the years ended December 31, 2019 and 2018 was $1,044,000 and $761,000, respectively.

Leases

Leases	12 Months Ended
	Dec. 31, 2019
Leases [Abstract]
Leases	The Company leases space under a non-cancelable operating lease for its corporate headquarters. This lease has escalating lease terms and also includes a tenant incentive that was recorded at the time the lease was originally entered into. The lease does not contain contingent rent provisions. The Company also has a lease for additional office space under an operating lease. The lease for the Company’s corporate headquarters includes both lease (e.g., fixed payments including rent, taxes, and insurance costs) and non-lease components (e.g., common-area or other maintenance costs) which are accounted for as a single lease component as we have elected the practical expedient to group lease and non-lease components for all leases. The lease for the Company’s additional office space is non-cancelable with a lease term of less than one year and therefore, we have elected the practical expedient to exclude this short-term lease from the Company’s right-of-use assets and lease liabilities. The Company’s leases include options to renew. The exercise of lease renewal options is at our sole discretion. Therefore, the renewals to extend the lease terms are not included in the Company’s right of use assets and lease liabilities as they are not reasonably certain of exercise. We regularly evaluate the renewal options and when they are reasonably certain of exercise, we include the renewal period in our lease term. We used the Company’s incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments. The cost components of the Company’s operating leases were as follows for the period ended December 31, 2019: Year ended December 31, 2019 Corporate Additional Operating Headquarters Office Space Leases Operating lease cost $ 150,000 $ - $ 150,000 Variable lease cost 106,000 - 106,000 Short-term lease cost - 38,000 38,000 Total $ 256,000 $ 38,000 $ 294,000 Variable lease costs consist primarily of taxes, insurance, and common area or other maintenance costs for the Company’s leased corporate headquarters which are paid based on actual costs incurred by the lessor. Maturities of the Company’s lease liabilities for its corporate headquarters operating lease were as follows as of December 31, 2019: Maturity of Lease Liabilities Operating Leases 2020 $ 222,000 2021 57,000 Total lease payments $ 279,000 Less: Interest 11,000 Present value of lease liabilities $ 268,000 The remaining lease term as of December 31, 2019 was 1.25 years and the discount rate was 6%. The cash outflow for operating leases for the year ended December 31, 2019 was $217,000. The following table presents future minimum lease payments for the Company’s operating leases at December 31, 2018 under ASC 840 and is being presented for comparative purposes: 2019 $ 217,000 2020 222,000 2021 57,000 Rent expense under these leases was approximately $184,000 for the year ended December 31, 2018.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Retailer Agreements Aggregate commitment amounts under agreements with retailers are approximately as follows for the years ending December 31: 2020 $ 2,534,000 2021 1,793,000 2022 518,000 2023 275,000 On an ongoing basis the Company negotiates renewals of various agreements with retailers, retailer contracts generally have terms of one to three years. To the extent contracts with existing retailers are renewed the annual commitment amounts for 2020 and thereafter are expected to be in excess of the amounts above. Legal . In July 2019, we brought suit against News America in the U.S. District Court in Minnesota, alleging violations of federal and state antitrust and tort laws by News America. The complaint alleges that News America has monopolized the national market for third-party in-store advertising and promotion products and services through various wrongful acts designed to harm the Company, its last significant competitor. The suit seeks, among other relief, an injunction sufficient to prevent further antitrust injury and an award of treble damages to be determined at trial for the harm caused to our Company. In August 2019, News America filed an answer and counterclaim. In October 2019, News America moved for a judgment on the pleadings. Management believes that the counterclaim is without merit, and we filed a response brief on November 11, 2019. We also moved to dismiss the counterclaim against us. The Court heard oral arguments from both parties on January 14, 2020, and a decision is outstanding. Discovery is underway and trial has been scheduled for June 2021. Due to the early nature of these proceedings, we are unable to determine the likelihood of an unfavorable outcome or estimate any potential resulting liability at this time.

Shareholders' Equity

Shareholders' Equity	12 Months Ended
	Dec. 31, 2019
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 for the years ended December 31, 2019 and 2018: Year ended December 31 2019 2018 Cost of sales $ 14,000 $ 11,000 Selling 121,000 102,000 Marketing 12,000 71,000 General and administrative 275,000 226,000 $ 422,000 $ 410,000 The Company uses the Black-Scholes option pricing model to estimate fair value of stock-based awards with the following weighted average assumptions: 2018 Stock Options: Expected life (years) 6.5 Expected volatility 51 % Dividend yield 0 % Risk-free interest rate 2.8 % 2019 2018 Stock Purchase Plan Options: Expected life (years) 1.0 1.0 Expected volatility 57 % 66 % Dividend yield 0 % 0 % Risk-free interest rate 2.6 % 1.8 % There were no options granted during the year ended December 31, 2019. 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 Under the terms of the 2018 Plan, the number of shares of our common stock that may be the subject of awards and issued under the 2018 Plan was initially 900,000 plus any shares remaining available for future grants under the 2013 Plan on the effective date of the 2018 Plan. All equity awards made during 2019 were under the 2018 Plan. Under the terms of the 2018 Plan, the Company may grant 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. The following table summarizes activity under the 2003, 2013 and 2018 Plans: Plan Shares Available for Grant Plan Options Outstanding Weighted Average Exercise Price Per Share Aggregate Intrinsic Value Balance at January 1, 2018 297,000 366,346 $ 2.41 Shares reserved 900,000 — Restricted stock units and awards granted - 2013 Plan ( 178,000 ) Restricted stock units and awards granted - 2018 Plan ( 165,667 ) — Stock options granted - 2018 Plan ( 119,515 ) 119,515 1.95 Stock options exercised — ( 2,276 ) 1.18 $ 705 Cancelled or forfeited - 2013 Plan options 51,230 ( 51,230 ) 2.17 Cancelled or forfeited - 2013 Plan restricted stock and restricted stock units 39,884 — 1.22 Cancelled or forfeited - 2003 Plan options — ( 59,428 ) 2.09 Balance at December 31, 2018 824,932 372,927 2.36 Restricted stock units and awards granted - 2018 Plan ( 70,755 ) — Cancelled or forfeited - 2018 Plan options 13,570 ( 13,570 ) 1.95 Cancelled or forfeited - 2018 Plan restricted stock and restricted stock units 13,570 — 1.95 Cancelled or forfeited - 2013 Plan options 20,492 ( 20,492 ) 2.10 Cancelled or forfeited - 2013 Plan restricted stock and restricted stock units 21,748 — 1.72 Cancelled or forfeited - 2003 Plan options — ( 41,666 ) 2.46 Balance at December 31, 2019 823,557 297,199 2.38 The number of options exercisable under the Plans was: December 31 2019 191,254 December 31 2018 253,412 The following table summarizes information about the stock options outstanding at December 31, 2019: Options Outstanding Ranges of Exercise Prices Number Outstanding Weighted Average Remaining Contractual Life Weighted Average Exercise Price Per Share Number Exercisable Weighted Average Exercise Price Per Share $ 1.18 - $2.04 148,291 6.93 years $ 1.74 42,346 $ 1.22 $ 2.05 - $3.09 106,557 3.05 years 2.61 106,557 2.61 $ 4.02 42,351 0.40 years 4.02 42,351 4.02 297,199 4.61 years $ 2.38 191,254 $ 2.61 Options outstanding under the Plans expire at various dates during the period from May 2020 through August 2028. Options outstanding at December 31, 2019 had no intrinsic value. Options exercisable at December 31, 2019 had a weighted average remaining life of 2.39 years and no intrinsic value. No options were granted in 2019. The weighted average grant-date fair value of options granted during the year ended December 31, 2018 was $1.04. No restricted stock or restricted stock unit awards were granted in 2019 to employees. During the year ended December 31, 2018, the Company issued 297,515 restricted stock units under the 2013 Plan and the 2018 Plan. The shares underlying the awards were assigned a weighted average value of $1.84 per share, which was the closing price of the Company’s common stock on the date of grants. These awards are scheduled to vest over three years or four years with the first vesting at the end of year two. During June 2019, non-employee members of the Board of Directors received restricted stock grants totaling 70,755 shares pursuant to the 2018 Plan. The shares underlying the awards were assigned a value of $1.06 per share, which was the closing price of the Company’s common stock on the date of grants, for a total value of $75,000, and are scheduled to vest the day immediately preceding the date of the next annual shareholder meeting. During July 2018, non-employee members of the Board of Directors received restricted stock grants totaling 46,152 shares pursuant to the 2018 Plan. The shares underlying the awards were assigned a value of $1.95 per share, which was the closing price of the Company’s common stock on the date of grants, for a total value of $90,000, and vested on June 5, 2019, the date of the 2019 annual shareholder meeting. Restricted stock and restricted stock unit transactions during the years ended December 31, 2019 and 2018 are summarized as follows: Number of Shares Weighted average grant date fair value Unvested shares at January 1, 2018 322,479 $ 1.69 Granted 343,667 1.86 Vested (132,940 ) 1.47 Forfeited or surrendered (39,884 ) 1.22 Unvested shares at December 31, 2018 493,322 $ 1.90 Granted 70,755 1.06 Vested (210,742 ) 1.59 Forfeited or surrendered (37,973 ) 1.84 Unvested shares at December 31, 2019 315,362 $ 1.92 As of December 31, 2019, there was approximately $58,000 of total unrecognized compensation costs related to outstanding stock options, which is expected to be recognized over a weighted average period of 2.61 years. As of December 31, 2019, there was approximately $230,000 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 1.68 years. Employee Stock Purchase Plan. Share Repurchase Programs. Dividends.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Income Taxes	Year Ended December 31 2019 2018 Current taxes - Federal $ - $ 177,000 Current taxes - State 38,000 48,000 Deferred taxes - Federal (437,000 ) 227,000 Deferred taxes - State (67,000 ) 32,000 Income tax expense (benefit) $ (466,000 ) $ 484,000 The actual tax expense (benefit) attributable to income (loss) before taxes differs from the expected tax expense (benefit) computed by applying the U.S. federal corporate income tax rate of 21% as follows: Year Ended December 31 2019 2018 Federal statutory rate 21.0 % 21.0 % Stock-based awards (0.8 ) 0.6 State taxes 3.2 2.8 Other permanent differences (0.1 ) 0.7 Impact of uncertain tax positions (0.6 ) 1.7 Valuation allowance (14.0 ) (1.6 ) Other (0.2 ) 0.5 Effective federal income tax rate 8.5 % 25.7 % Components of resulting noncurrent deferred tax assets (liabilities) are as follows: As of December 31 2019 2018 Deferred tax assets Accrued expenses $ 105,000 $ 129,000 Inventory reserve 5,000 3,000 Stock-based awards 88,000 78,000 Reserve for bad debts 16,000 5,000 Net operating loss and credit carryforwards 715,000 39,000 Other 26,000 23,000 Valuation allowance (848,000 ) (79,000 ) Total deferred tax assets $ 107,000 $ 198,000 Deferred tax liabilities Depreciation $ (18,000 ) $ (635,000 ) Prepaid expenses (89,000 ) (67,000 ) Total deferred tax liabilities (107,000 ) (702,000 ) Net deferred income tax liabilities $ - $ (504,000 ) As of December 31, 2019, the Company had a Federal net operating loss (NOL) to carry forward of approximately $2,764,000 and state NOLs of $2,076,000 to carry forward. The Federal NOLs can be carried forward indefinitely. The expiration of state NOLs carried forward varies by taxing jurisdiction. Future utilization of NOLs carried forward may be subject to certain limitations under Section 382 of the Internal Revenue Code. 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 consideration the Company’s recent performance. The change in the valuation allowance for the years ended December 31, 2019 and 2018 was $769,000 and ($29,000), respectively. The Company has recorded a liability of $643,000 and $613,000 for uncertain tax positions taken in tax returns in previous years as of December 31, 2019 and 2018, 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 2016 and forward are open for examination and assessment by the Internal Revenue Service. With limited exceptions, tax years prior to 2016 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, 2020. A reconciliation of the beginning and ending amount of the liability for uncertain tax positions is as follows: Balance at January 1, 2018 $ 581,000 Increases due to interest and state tax 32,000 Balance at December 31, 2018 613,000 Increases due to interest and state tax 30,000 Balance at December 31, 2019 $ 643,000

Employee Benefit Plans

Employee Benefit Plans	12 Months Ended
	Dec. 31, 2019
Retirement Benefits [Abstract]
Employee Benefit Plans

Concentrations

Concentrations	12 Months Ended
	Dec. 31, 2019
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, 2019
Quarterly Financial Information Disclosure [Abstract]
Quarterly Financial Data	Quarterly data for the years ended December 31, 2019 and 2018 was as follows: Year Ended December 31, 2019 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Net sales $ 5,140,000 $ 5,842,000 $ 4,654,000 $ 6,318,000 Gross profit 774,000 1,465,000 926,000 1,596,000 Net loss (1,096,000 ) (488,000 ) (978,000 ) (2,459,000 ) Net loss per share: Basic $ (0.09 ) $ (0.04 ) $ (0.08 ) $ (0.21 ) Diluted $ (0.09 ) $ (0.04 ) $ (0.08 ) $ (0.21 ) Year Ended December 31, 2018 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Net sales $ 7,419,000 $ 8,245,000 $ 9,455,000 $ 8,117,000 Gross profit 2,746,000 3,005,000 3,563,000 3,247,000 Net income 164,000 184,000 645,000 406,000 Net income per share: Basic $ 0.01 $ 0.02 $ 0.05 $ 0.04 Diluted $ 0.01 $ 0.02 $ 0.05 $ 0.04

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2019
Accounting Policies [Abstract]
Description of Business	Description of Business .
Revenue Recognition	Revenue Recognition
Cash and Cash Equivalents	Cash and Cash Equivalents
Fair Value of Financial Measurements	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	Accounts Receivable . Changes in the Company’s allowance for doubtful accounts are as follows: December 31 2019 2018 Beginning balance $ 22,000 $ 213,000 Bad debt provision 47,000 6,000 Accounts written-off (4,000 ) (197,000 ) Ending balance $ 65,000 $ 22,000
Inventories	Inventories December 31 2019 2018 Raw materials $ 47,000 $ 80,000 Work-in-process 16,000 12,000 Finished goods 259,000 261,000 $ 322,000 $ 353,000
Property and Equipment	Property and Equipment Production tooling, machinery and equipment 1 - 6 years Office furniture and fixtures 1 - 3 years Computer equipment and software 3 - 5 years
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets A hierarchy for inputs used in measuring fair value is in place that distinguishes market data between observable independent market inputs and unobservable market assumptions by the reporting entity. The hierarchy is intended to maximize the use of observable inputs and minimize the use of unobservable inputs by requiring that the most observable inputs be used when available. The Company identified indicators of impairment due to the current year operating loss, cash flows used in operations and the excess of the book value of the Company compared to its market capitalization, which became a significant difference during the last two months of 2019. Due to these indicators of impairment, the Company completed an impairment analysis on its long-lived assets by first reviewing the expected undiscounted cash flows compared to the carrying value over the primary asset’s remaining useful life to determine if further impairment testing was required. The Company prepared an undiscounted cash flow analysis related to its selling agreement (see Note 3) which is a separate asset group and as the undiscounted cash flows exceeded the carrying value, no further impairment testing was required. For the property and equipment asset group, the undiscounted cash flows were less than carrying value and therefore, a fair value assessment was required to determine the amount of the impairment. Due to the nature of the primary asset (internally developed software), the most readily available fair market value related to the asset is the market capitalization of the Company which is considered a level 1 measurement (quoted market price). After allocating the Company’s market capitalization to its working capital, there was no remaining value to allocate to long-lived assets which included the internally developed software recently placed in service. The Company utilized other level 3 inputs to determine the fair value of other tangible long-lived assets, including appraised values of production tooling, machinery and equipment. As a result, the Company recorded a long-lived asset impairment charge totaling $2,014,000 during the 4th quarter 2019. Property and Equipment, net: Balance prior to impairment $ 2,563,000 Impairment charge (2,014,000 ) Ending balance $ 549,000
Income Taxes	Income Taxes
Stock-Based Compensation	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	Advertising Costs
Net Income (Loss) per Share	Net Income (Loss) Per Share Weighted average common shares outstanding for the years ended December 31, 2019 and 2018 were as follows: Year ended December 31 2019 2018 Denominator for basic net income (loss) per share - weighted average shares 11,941,000 11,776,000 Effect of dilutive securities: Stock options, restricted stock units and restricted stock awards - 231,000 Denominator for diluted net income (loss) per share - weighted average shares 11,941,000 12,007,000 Due to the net loss incurred during the year ended December 31, 2019, all stock awards were anti-dilutive for the period. Options to purchase approximately 284,000 shares of common stock outstanding for the year ended December 31, 2018 were not included in the computation of common stock equivalents because their exercise prices were higher than the average fair market value of the common shares during the year. Restricted stock units of approximately 45,000 shares for the year ended December 31, 2018 were anti-dilutive due to the amount of weighted-average unrecognized compensation related to these grants.
Use of Estimates	Use of Estimates
Recent Accounting Pronouncements	Recently Adopted Accounting Pronouncement “Leases

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2019
Accounting Policies [Abstract]
Schedule Of Allowance For Doubtful Accounts	December 31 2019 2018 Beginning balance $ 22,000 $ 213,000 Bad debt provision 47,000 6,000 Accounts written-off (4,000 ) (197,000 ) Ending balance $ 65,000 $ 22,000
Schedule Of Inventories	December 31 2019 2018 Raw materials $ 47,000 $ 80,000 Work-in-process 16,000 12,000 Finished goods 259,000 261,000 $ 322,000 $ 353,000
Schedule Of Estimated Useful Lives	Production tooling, machinery and equipment 1 - 6 years Office furniture and fixtures 1 - 3 years Computer equipment and software 3 - 5 years
Asset impairment	Property and Equipment, net: Balance prior to impairment $ 2,563,000 Impairment charge (2,014,000 ) Ending balance $ 549,000
Schedule Of Weighted Average Common Shares Outstanding	Year ended December 31 2019 2018 Denominator for basic net income (loss) per share - weighted average shares 11,941,000 11,776,000 Effect of dilutive securities: Stock options, restricted stock units and restricted stock awards - 231,000 Denominator for diluted net income (loss) per share - weighted average shares 11,941,000 12,007,000

Revenue Recognition (Tables)

Revenue Recognition (Tables)	12 Months Ended
	Dec. 31, 2019
Revenue Recognition Tables Abstract
Disaggregation of Revenue	Year ended December 31, 2019 Services Revenues Products Revenue Total Revenue Timing of revenue recognition: Products and services transferred over time $ 15,172,000 $ - $ 15,172,000 Products and services transferred at a point in time 5,057,000 1,725,000 6,782,000 Total $ 20,229,000 $ 1,725,000 $ 21,954,000 Year ended December 31, 2018 Services Revenues Products Revenue Total Revenue Timing of revenue recognition: Products and services transferred over time $ 28,598,000 $ - $ 28,598,000 Products and services transferred at a point in time 3,025,000 1,613,000 4,638,000 Total $ 31,623,000 $ 1,613,000 $ 33,236,000
Schedule of Changes in Deferred Revenue	Balance at December 31, 2018 $ 302,000 Reclassification of beginning deferred revenue to revenue, as a result of performance obligations satisfied (302,000 ) Cash received in advance and not recognized as revenue 140,000 Balance at December 31, 2019 $ 140,000

Selling Arrangement (Tables)

Selling Arrangement (Tables)	12 Months Ended
	Dec. 31, 2019
Selling Arrangement
Summary of the Carrying Amount of the Selling Arrangement	2019 2018 Gross cost $ 4,000,000 $ 4,000,000 Accumulated amortization (3,683,000 ) (3,083,000 ) Net carrying amount $ 317,000 $ 917,000

Property and Equipment (Tables)

Property and Equipment (Tables)	12 Months Ended
	Dec. 31, 2019
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment	Year ended December 31 2019 2018 Property and Equipment: Production tooling, machinery and equipment $ 3,685,000 $ 3,694,000 Office furniture and fixtures 393,000 385,000 Computer equipment and software 1,426,000 2,743,000 Leasehold improvements - 577,000 Construction in-progress - 1,179,000 5,504,000 8,578,000 Accumulated depreciation and amortization (4,955,000 ) (5,310,000 ) Net Property and Equipment $ 549,000 $ 3,268,000

Leases (Tables)

Leases (Tables)	12 Months Ended
	Dec. 31, 2019
Leases [Abstract]
Components of our operating leases	Year ended December 31, 2019 Corporate Additional Operating Headquarters Office Space Leases Operating lease cost $ 150,000 $ - $ 150,000 Variable lease cost 106,000 - 106,000 Short-term lease cost - 38,000 38,000 Total $ 256,000 $ 38,000 $ 294,000
Maturities of our lease liabilities	Maturity of Lease Liabilities Operating Leases 2020 $ 222,000 2021 57,000 Total lease payments $ 279,000 Less: Interest 11,000 Present value of lease liabilities $ 268,000 2019 $ 217,000 2020 222,000 2021 57,000

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Schedule of Aggregate Commitment Amounts	2020 $ 2,534,000 2021 1,793,000 2022 518,000 2023 275,000

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)	12 Months Ended
	Dec. 31, 2019
Stockholders' Equity Note [Abstract]
Summary of Stock-Based Compensation Expense	Year ended December 31 2019 2018 Cost of sales $ 14,000 $ 11,000 Selling 121,000 102,000 Marketing 12,000 71,000 General and administrative 275,000 226,000 $ 422,000 $ 410,000
Schedule of Weighted Average Assumptions	2018 Stock Options: Expected life (years) 6.5 Expected volatility 51 % Dividend yield 0 % Risk-free interest rate 2.8 % 2019 2018 Stock Purchase Plan Options: Expected life (years) 1.0 1.0 Expected volatility 57 % 66 % Dividend yield 0 % 0 % Risk-free interest rate 2.6 % 1.8 %
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, 2018 297,000 366,346 $ 2.41 Shares reserved 900,000 — Restricted stock units and awards granted - 2013 Plan ( 178,000 ) Restricted stock units and awards granted - 2018 Plan ( 165,667 ) — Stock options granted - 2018 Plan ( 119,515 ) 119,515 1.95 Stock options exercised — ( 2,276 ) 1.18 $ 705 Cancelled or forfeited - 2013 Plan options 51,230 ( 51,230 ) 2.17 Cancelled or forfeited - 2013 Plan restricted stock and restricted stock units 39,884 — 1.22 Cancelled or forfeited - 2003 Plan options — ( 59,428 ) 2.09 Balance at December 31, 2018 824,932 372,927 2.36 Restricted stock units and awards granted - 2018 Plan ( 70,755 ) — Cancelled or forfeited - 2018 Plan options 13,570 ( 13,570 ) 1.95 Cancelled or forfeited - 2018 Plan restricted stock and restricted stock units 13,570 — 1.95 Cancelled or forfeited - 2013 Plan options 20,492 ( 20,492 ) 2.10 Cancelled or forfeited - 2013 Plan restricted stock and restricted stock units 21,748 — 1.72 Cancelled or forfeited - 2003 Plan options — ( 41,666 ) 2.46 Balance at December 31, 2019 823,557 297,199 2.38
Schedule Of The Number Of Options Exercisable	December 31 2019 191,254 December 31 2018 253,412
Summary Of Information About Stock Options Outstanding	Options Outstanding Ranges of Exercise Prices Number Outstanding Weighted Average Remaining Contractual Life Weighted Average Exercise Price Per Share Number Exercisable Weighted Average Exercise Price Per Share $ 1.18 - $2.04 148,291 6.93 years $ 1.74 42,346 $ 1.22 $ 2.05 - $3.09 106,557 3.05 years 2.61 106,557 2.61 $ 4.02 42,351 0.40 years 4.02 42,351 4.02 297,199 4.61 years $ 2.38 191,254 $ 2.61
Summary of Restricted Stock and Restricted Stock Units	Number of Shares Weighted average grant date fair value Unvested shares at January 1, 2018 322,479 $ 1.69 Granted 343,667 1.86 Vested (132,940 ) 1.47 Forfeited or surrendered (39,884 ) 1.22 Unvested shares at December 31, 2018 493,322 $ 1.90 Granted 70,755 1.06 Vested (210,742 ) 1.59 Forfeited or surrendered (37,973 ) 1.84 Unvested shares at December 31, 2019 315,362 $ 1.92

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Schedule Of Income Tax Benefit	Year Ended December 31 2019 2018 Current taxes - Federal $ - $ 177,000 Current taxes - State 38,000 48,000 Deferred taxes - Federal (437,000 ) 227,000 Deferred taxes - State (67,000 ) 32,000 Income tax expense (benefit) $ (466,000 ) $ 484,000
Reconciliation Of Effective Income Tax Rate Percentage	Year Ended December 31 2019 2018 Federal statutory rate 21.0 % 21.0 % Stock-based awards (0.8 ) 0.6 State taxes 3.2 2.8 Other permanent differences (0.1 ) 0.7 Impact of uncertain tax positions (0.6 ) 1.7 Valuation allowance (14.0 ) (1.6 ) Other (0.2 ) 0.5 Effective federal income tax rate 8.5 % 25.7 %
Schedule of Resulting Noncurrent Deferred Tax Assets (Liabilities)	As of December 31 2019 2018 Deferred tax assets Accrued expenses $ 105,000 $ 129,000 Inventory reserve 5,000 3,000 Stock-based awards 88,000 78,000 Reserve for bad debts 16,000 5,000 Net operating loss and credit carryforwards 715,000 39,000 Other 26,000 23,000 Valuation allowance (848,000 ) (79,000 ) Total deferred tax assets $ 107,000 $ 198,000 Deferred tax liabilities Depreciation $ (18,000 ) $ (635,000 ) Prepaid expenses (89,000 ) (67,000 ) Total deferred tax liabilities (107,000 ) (702,000 ) Net deferred income tax liabilities $ - $ (504,000 )
Reconciliation of the Liability for Uncertain Tax Positions	Balance at January 1, 2018 $ 581,000 Increases due to interest and state tax 32,000 Balance at December 31, 2018 613,000 Increases due to interest and state tax 30,000 Balance at December 31, 2019 $ 643,000

Quarterly Financial Data (Table

Quarterly Financial Data (Tables)	12 Months Ended
	Dec. 31, 2019
Quarterly Financial Information Disclosure [Abstract]
Schedule Of Quarterly Financial Data	Year Ended December 31, 2019 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Net sales $ 5,140,000 $ 5,842,000 $ 4,654,000 $ 6,318,000 Gross profit 774,000 1,465,000 926,000 1,596,000 Net loss (1,096,000 ) (488,000 ) (978,000 ) (2,459,000 ) Net loss per share: Basic $ (0.09 ) $ (0.04 ) $ (0.08 ) $ (0.21 ) Diluted $ (0.09 ) $ (0.04 ) $ (0.08 ) $ (0.21 ) Year Ended December 31, 2018 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Net sales $ 7,419,000 $ 8,245,000 $ 9,455,000 $ 8,117,000 Gross profit 2,746,000 3,005,000 3,563,000 3,247,000 Net income 164,000 184,000 645,000 406,000 Net income per share: Basic $ 0.01 $ 0.02 $ 0.05 $ 0.04 Diluted $ 0.01 $ 0.02 $ 0.05 $ 0.04

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Accounting Policies [Abstract]
Beginning balance	$ 22,000	$ 213,000
Bad debt provision	47,000	6,000
Accounts written-off	(4,000)	(197,000)
Ending balance	$ 65,000	$ 22,000

Summary of Significant Accoun_5

Summary of Significant Accounting Policies (Details 1) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Accounting Policies [Abstract]
Raw materials	$ 47,000	$ 80,000
Work-in-process	16,000	12,000
Finished goods	259,000	261,000
Inventories	$ 322,000	$ 353,000

Summary of Significant Accoun_6

Summary of Significant Accounting Policies (Details 2)	12 Months Ended
	Dec. 31, 2019
Tools Dies And Molds | Minimum
Estimated Useful lives	1 year
Tools Dies And Molds | Maximum
Estimated Useful lives	6 years
Furniture And Fixtures | Minimum
Estimated Useful lives	1 year
Furniture And Fixtures | Maximum
Estimated Useful lives	3 years
Computer Equipment and Software | Minimum
Estimated Useful lives	3 years
Computer Equipment and Software | Maximum
Estimated Useful lives	5 years

Summary of Significant Accoun_7

Summary of Significant Accounting Policies (Details 3) - shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Accounting Policies [Abstract]
Denominator for basic net loss per share - weighted average shares	11,941,000	11,776,000
Effect of dilutive securities: Stock options, restricted stock and restricted stock units		231,000
Denominator for diluted net loss per share - weighted average shares	11,941,000	12,007,000

Summary Of Significant Accoun_8

Summary Of Significant Accounting Policies (Details 4) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Accounting Policies [Abstract]
Beginning balance prior to impairment	$ 2,563,000
Impairment charge	(2,014,000)	$ 0
Ending balance	$ 549,000	$ 3,268,000

Summary of Significant Accoun_9

Summary of Significant Accounting Policies (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Accounting Policies [Abstract]
Insured cash sweep account	$ 7,333,000	$ 9,393,000
Advertising expense	$ 133,000	$ 207,000

Revenue Recognition (Details)

Revenue Recognition (Details) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Services revenues									$ 20,229,000	$ 31,623,000
Products revenues									1,725,000	1,613,000
Total Net Sales	$ 6,318,000	$ 4,654,000	$ 5,842,000	$ 5,140,000	$ 8,117,000	$ 9,455,000	$ 8,245,000	$ 7,419,000	21,954,000	33,236,000
Products and services transferred over time
Services revenues									15,172,000	28,598,000
Products revenues									0	0
Total Net Sales									15,172,000	28,598,000
Products and services transferred at a point in time
Services revenues									5,057,000	3,025,000
Products revenues									1,725,000	1,613,000
Total Net Sales									$ 6,782,000	$ 4,638,000

Revenue Recognition (Details 1)

Revenue Recognition (Details 1)	12 Months Ended
	Dec. 31, 2019USD ($)
Revenue Recognition Details Abstract
Deferred revenue, beginning	$ 302,000
Reclassification of beginning deferred revenue to revenue, as a result of performance obligations satisfied	(302,000)
Cash received in advance and not recognized as revenue	140,000
Deferred revenue, ending	$ 140,000

Selling Arrangement (Details)

Selling Arrangement (Details) - Customer Contracts - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Gross cost	$ 4,000,000	$ 4,000,000
Accumulated amortization	(3,683,000)	(3,083,000)
Net carrying amount	$ 317,000	$ 917,000

Selling Arrangement (Details Na

Selling Arrangement (Details Narrative) - Customer Contracts - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2012
Payment for arrangement to sell signs			$ 4,000,000
Term of arrangement			10 years
Amortization expense	$ 600,000	$ 400,000
2020	262,000	262,000
2021	$ 55,000	$ 55,000

Property and Equipment (Details

Property and Equipment (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Property, Plant and Equipment [Line Items]
Gross property and equipment	$ 5,504,000	$ 8,578,000
Accumulated depreciation and amortization	(4,955,000)	(5,310,000)
Net property and equipment	549,000	3,268,000
Machinery And Equipment
Property, Plant and Equipment [Line Items]
Gross property and equipment	3,685,000	3,694,000
Furniture And Fixtures
Property, Plant and Equipment [Line Items]
Gross property and equipment	393,000	385,000
Computer Equipment and Software
Property, Plant and Equipment [Line Items]
Gross property and equipment	1,426,000	2,743,000
Leasehold Improvements
Property, Plant and Equipment [Line Items]
Gross property and equipment	0	577,000
Construction In Progress
Property, Plant and Equipment [Line Items]
Gross property and equipment	$ 0	$ 1,179,000

Property and Equipment (Detai_2

Property and Equipment (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Property And Equipment
Depreciation expense	$ 1,044,000	$ 761,000

Leases (Details)

Leases (Details)	12 Months Ended
	Dec. 31, 2019USD ($)
Corporate Headquarters
Operating lease cost	$ 150,000
Variable lease cost	106,000
Short-term lease cost	0
Total	256,000
Additional Office Space
Operating lease cost	0
Variable lease cost	0
Short-term lease cost	38,000
Total	38,000
Operating Leases
Operating lease cost	150,000
Variable lease cost	106,000
Short-term lease cost	38,000
Total	$ 294,000

Leases (Details 1)

Leases (Details 1) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Leases [Abstract]
2020	$ 222,000	$ 222,000
2021	57,000	$ 57,000
Total lease payments	279,000
Less: Interest	11,000
Present value of lease liabilities	$ 268,000

Leases (Details 2)

Leases (Details 2) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Leases [Abstract]
2020		$ 217,000
2021	$ 222,000	222,000
2022	$ 57,000	$ 57,000

Leases (Details Narrative)

Leases (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2019
Leases [Abstract]
Remaining lease term		1 year 3 months
Discount rate		6.00%
Rent expense	$ 184,000

Commitments and Contingencies_2

Commitments and Contingencies (Details 1)	Dec. 31, 2019USD ($)
Commitments and Contingencies Disclosure [Abstract]
2020	$ 2,534,000
2021	1,793,000
2022	518,000
2023	$ 275,000

Commitments and Contingencies_3

Commitments and Contingencies (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Fixed and store-based payments	$ 3,356,000	$ 4,846,000

Shareholders' Equity (Details)

Shareholders' Equity (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Stock-based compensation expense	$ 422,000	$ 410,000
Cost Of Sales
Stock-based compensation expense	14,000	11,000
Selling Expenses
Stock-based compensation expense	121,000	102,000
Marketing Expenses
Stock-based compensation expense	12,000	71,000
General And Administrative Expense
Stock-based compensation expense	$ 275,000	$ 226,000

Shareholders' Equity (Details 1

Shareholders' Equity (Details 1)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Employee Stock Option
Expected life	6 years 6 months	6 years 6 months
Expected volatility	51.00%	51.00%
Dividend yield	0.00%	0.00%
Risk-free interest rate	2.80%	2.80%
Employee Stock
Expected life	1 year	1 year
Expected volatility	57.00%	66.00%
Dividend yield	0.00%	0.00%
Risk-free interest rate	2.60%	1.80%

Shareholders' Equity (Details 2

Shareholders' Equity (Details 2) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Restricted stock and restricted stock units granted (in shares)	(70,755)	(343,667)
Employee Stock Option
Balance at the beginning of the period (in shares)	824,932	297,000
Shares reserved (in shares)		900,000
Stock options exercised (in shares)		0
Balance at the end of the period (in shares)	823,557	824,932
Balance at the beginning of the period (in shares)	372,927	366,346
Stock options exercised (in shares)		(2,276)
Balance at the end of the period (in shares)	297,199	372,927
Balance at the beginning of the period (in dollars per share)	$ 2.36	$ 2.41
Stock options exercised (in dollars per share)		1.18
Cancelled or forfeited (in dollars per share)	1.95
Balance at the end of the period (in dollars per share)	$ 2.38	$ 2.36
Aggregate Intrinsic Value, Stock options exercised (in dollars)	$ 0	$ 705
Employee Stock Option | Stock Option Plan 2013
Cancelled or forfeited (in shares)	20,492	51,230
Cancelled or forfeited (in shares)	(20,492)	(51,230)
Cancelled or forfeited (in dollars per share)	$ 2.10	$ 2.17
Employee Stock Option | Stock Option Plan 2018
Restricted stock and restricted stock units granted (in shares)	(70,755)
Stock options granted (in shares)		(119,515)
Cancelled or forfeited (in shares)	13,570
Stock options granted (in shares)		119,515
Cancelled or forfeited (in shares)	(13,570)
Stock options granted (in dollars per share)		$ 1.95
Employee Stock Option | Incentive Stock Option Plan 2003 [Member]
Cancelled or forfeited (in shares)		0
Cancelled or forfeited (in shares)	(41,666)	(59,428)
Cancelled or forfeited (in dollars per share)	$ 2.46	$ 2.09
Restricted Stock and Restricted Stock Units | Stock Option Plan 2013
Restricted stock and restricted stock units granted (in shares)		(178,000)
Cancelled or forfeited (in shares)	21,748	39,884
Cancelled or forfeited (in shares)		0
Cancelled or forfeited (in dollars per share)	$ 1.72	$ 1.22
Restricted Stock and Restricted Stock Units | Stock Option Plan 2018
Restricted stock and restricted stock units granted (in shares)		(165,667)
Cancelled or forfeited (in shares)	13,570
Cancelled or forfeited (in dollars per share)	$ 1.95

Shareholders' Equity (Details 3

Shareholders' Equity (Details 3) - shares	Dec. 31, 2019	Dec. 31, 2018
Stockholders' Equity Note [Abstract]
Number Exercisable (in shares)	191,254	253,412

Shareholders' Equity (Details 4

Shareholders' Equity (Details 4) - $ / shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Options Outstanding (in shares)	297,199
Weighted Average Remaining Contractual Life (in years)	4 years 7 months 10 days
Outstanding Weighted Average Exercise Price Per Share (in dollars per share)	$ 2.38
Options Exercisable (in shares)	191,254	253,412
Exercisable Weighted Average Exercise Price Per Share (in dollars per share)	$ 2.61
Exercise Price Range One
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)	148,291
Weighted Average Remaining Contractual Life (in years)	6 years 11 months 5 days
Outstanding Weighted Average Exercise Price Per Share (in dollars per share)	$ 1.74
Options Exercisable (in shares)	42,346
Exercisable Weighted Average Exercise Price Per Share (in dollars per share)	$ 1.22
Exercise Price Range Two
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)	106,557
Weighted Average Remaining Contractual Life (in years)	3 years 18 days
Outstanding Weighted Average Exercise Price Per Share (in dollars per share)	$ 2.61
Options Exercisable (in shares)	106,557
Exercisable Weighted Average Exercise Price Per Share (in dollars per share)	$ 2.61
Exercise Price Range Three
Exercise Price (in dollars per share)	$ 4.02
Options Outstanding (in shares)	42,351
Weighted Average Remaining Contractual Life (in years)	4 months 24 days
Outstanding Weighted Average Exercise Price Per Share (in dollars per share)	$ 4.02
Options Exercisable (in shares)	42,351
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, 2019	Dec. 31, 2018
Stockholders' Equity Note [Abstract]
Outstanding at the beginning of the period (in shares)	493,322	322,479
Granted (in shares)	70,755	343,667
Vested ( in shares)	(210,742)	(132,940)
Forfeited or surrendered (in shares)	(37,973)	(39,884)
Outstanding at the end of the period (in shares)	315,362	493,322
Beginning balance fair value (in dollars per share)	$ 1.90	$ 1.69
Granted (in dollars per share)	1.06	1.86
Vested (in dollars per share)	1.59	1.47
Forfeited or surrendered (in dollars per share)	1.84	1.22
Ending balance fair value (in dollars per share)	$ 1.92	$ 1.90

Shareholders' Equity (Details N

Shareholders' Equity (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Weighted average remaining life of options exercisable	2 years 4 months 20 days	3 years 1 month 24 days
Weighted average grant-date fair value of options granted	$ 0	$ 1.04
Restricted stock (in shares)	70,755	343,667
Restricted stock on the grant date (in dollars per share)	$ 1.06	$ 1.86
Unrecognized compensation costs related to stock options	$ 58,000	$ 107,000
Unrecognized compensation costs related to restricted stock units	230,000	549,000
Stock-based compensation expense	$ 422,000	$ 410,000
Repurchase of common stock, shares	0	164,000
Repurchase of common stock, amount	$ 0	$ 298,000
Employee Stock
Employees purchased shares	32,741	107,341
Shares are reserved for future employee purchases	245,909	278,380
Stock-based compensation expense	$ 55,000	$ 58,000
2013 and 2018 Plan | Restricted Stock and Restricted Stock Units
Restricted stock (in shares)	0	297,515
Restricted stock on the grant date (in dollars per share)	$ 0	$ 1.84
Vesting period	0 years	2 years

Income Taxes (Details)

Income Taxes (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Current taxes - Federal	$ 0	$ 177,000
Current taxes - State	38,000	48,000
Deferred taxes - Federal	(437,000)	227,000
Deferred taxes - State	(67,000)	32,000
Income tax expense (benefit)	$ (466,000)	$ 484,000

Income Taxes (Details 1)

Income Taxes (Details 1)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Federal statutory rate	21.00%	21.00%
Stock based awards	(0.80%)	0.60%
State taxes	3.20%	2.80%
Other permanent differences	(0.10%)	0.70%
Impact of uncertain tax positions	(0.60%)	1.70%
Valuation allowance	(14.00%)	(1.60%)
Other	(0.20%)	0.50%
Effective federal income tax rate	8.50%	25.70%

Income Taxes (Details 2)

Income Taxes (Details 2) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Deferred Tax Assets:
Accrued expenses	$ 105,000	$ 129,000
Inventory reserve	5,000	3,000
Stock-based awards	88,000	78,000
Reserve for bad debts	16,000	5,000
Net operating loss and credit carryforwards	715,000	39,000
Other	26,000	23,000
Valuation allowance	(848,000)	(79,000)
Total deferred tax assets	107,000	198,000
Deferred Tax Liabilities:
Depreciation	(18,000)	(635,000)
Prepaid expenses	(89,000)	(67,000)
Total deferred tax liabilities	(107,000)	(702,000)
Net deferred income tax liabilities	$ 0	$ (504,000)

Income Taxes (Details 3)

Income Taxes (Details 3) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Balance at the beginning of the period	$ 613,000	$ 581,000
Increases due to interest and state tax	30,000	32,000
Balance at the end of the period	$ 643,000	$ 613,000

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Change in the valuation allowance	$ 769,000	$ (29,000)
Accrued income taxes	643,000	$ 613,000	$ 581,000
Federal
Net operating loss to carry forward	2,764,000
State
Net operating loss to carry forward	$ 2,076,000

Employee Benefit Plans (Details

Employee Benefit Plans (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Retirement Benefits [Abstract]
Employee contribution percentage	50.00%	50.00%
Matching employer contribution	$ 72,000	$ 68,000

Concentrations (Details Narrati

Concentrations (Details Narrative)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Customer's percentage of net sales	1.00%	1.00%
Sales Revenue Net | Customer One
Customer's percentage of net sales	13.00%	24.00%
Sales Revenue Net | Customer Two
Customer's percentage of net sales	12.00%	20.00%
Accounts Receivable | Customer One
Customer's percentage of net sales	17.00%	31.00%
Accounts Receivable | Customer Two
Customer's percentage of net sales	12.00%	16.00%
Accounts Receivable | Customer Three
Customer's percentage of net sales	12.00%
Accounts Receivable | Customer Four
Customer's percentage of net sales	10.00%

Quarterly Financial Data (Detai

Quarterly Financial Data (Details) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Quarterly Financial Information Disclosure [Abstract]
Net sales	$ 6,318,000	$ 4,654,000	$ 5,842,000	$ 5,140,000	$ 8,117,000	$ 9,455,000	$ 8,245,000	$ 7,419,000	$ 21,954,000	$ 33,236,000
Gross profit	1,596,000	926,000	1,465,000	774,000	3,247,000	3,563,000	3,005,000	2,746,000	4,761,000	12,561,000
Net income (loss)	$ (2,459,000)	$ (978,000)	$ (488,000)	$ (1,096,000)	$ 406,000	$ 645,000	$ 184,000	$ 164,000	$ (5,021,000)	$ 1,399,000
Net income (loss) per share:
Basic	$ (0.21)	$ (0.08)	$ (0.04)	$ (0.09)	$ 0.04	$ 0.05	$ 0.02	$ 0.01	$ (0.42)	$ 0.12
Diluted	$ (0.21)	$ (0.08)	$ (0.04)	$ (0.09)	$ 0.04	$ 0.05	$ 0.02	$ 0.01	$ (0.42)	$ 0.12