Lendway (LDWY) 10-K 9 Mar 22 2021 FY Annual report Financial data

Cover

Cover - USD ($)	12 Months Ended
	Dec. 31, 2021	Mar. 08, 2022	Jun. 30, 2021
Cover [Abstract]
Entity Registrant Name	INSIGNIA SYSTEMS INC/MN
Entity Central Index Key	0000875355
Document Type	10-K
Amendment Flag	false
Entity Voluntary Filers	No
Current Fiscal Year End Date	--12-31
Entity Well Known Seasoned Issuer	No
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Document Period End Date	Dec. 31, 2021
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2021
Entity Common Stock Shares Outstanding		1,786,296
Entity Public Float			$ 5,460,000
Document Annual Report	true
Entity File Number	001-13471
Entity Incorporation State Country Code	MN
Entity Tax Identification Number	41-1656308
Entity Address Address Line 1	212 Third Avenue N, Suite 356
Entity Address City Or Town	Minneapolis
Entity Address State Or Province	MN
Entity Address Postal Zip Code	55401
City Area Code	763
Icfr Auditor Attestation Flag	false
Local Phone Number	392-6200
Security 12b Title	Common Stock, $0.01 par value
Trading Symbol	ISIG
Security Exchange Name	NASDAQ
Entity Interactive Data Current	Yes
Auditor Name	Baker Tilly US, LLP
Auditor Location	Minneapolis, Minnesota
Auditor Firm Id	23

CONDENSED BALANCE SHEETS

CONDENSED BALANCE SHEETS - USD ($)	Dec. 31, 2021	Dec. 31, 2020
Current Assets:
Cash and cash equivalents	$ 3,766,000	$ 7,128,000
Restricted cash	85,000	0
Accounts receivable, net	5,247,000	5,857,000
Inventories	19,000	85,000
Income tax receivable	4,000	241,000
Prepaid production costs	867,000	376,000
Other prepaid expense	366,000	335,000
Total Current Assets	10,354,000	14,022,000
Other Assets:
Property and equipment, net	113,000	75,000
Operating lease right-of-use assets	183,000	37,000
Other, net	0	155,000
Total Assets	10,650,000	14,289,000
Current Liabilities:
Accounts payable	2,539,000	3,148,000
Accrued liabilities:
Compensation	464,000	424,000
Sales tax	1,287,000	1,011,000
Other	1,430,000	1,071,000
Current portion of long-term debt	0	464,000
Current portion of operating lease liabilities	76,000	56,000
Deferred revenue	842,000	180,000
Total Current Liabilities	6,638,000	6,354,000
Long-Term Liabilities:
Accrued income taxes	711,000	677,000
Long-term debt	0	590,000
Operating lease liabilities	108,000	0
Total Long-Term Liabilities	819,000	1,267,000
Commitments and Contingencies	0	0
Common stock, par value $.01: Authorized shares - 5,714,000
Issued and outstanding shares - 1,782,000 and 1,748,000 at December 31, 2021 and 2020, respectively	18,000	17,000
Additional paid-in capital	16,296,000	16,238,000
Accumulated deficit	(13,121,000)	(9,587,000)
Total Shareholders' Equity	3,193,000	6,668,000
Total Liabilities and Shareholders' Equity	$ 10,650,000	$ 14,289,000

CONDENSED STATEMENTS OF OPERATI

CONDENSED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
CONDENSED STATEMENTS OF OPERATIONS (Unaudited)
Services revenues	$ 19,503,000	$ 16,904,000
Products revenues	0	578,000
Total Net Sales	19,503,000	17,482,000
Cost of services	16,273,000	13,934,000
Cost of goods sold	0	533,000
Impairment loss - services	0	159,000
Gross Profit	3,230,000	2,856,000
Operating Expenses:
Selling	1,931,000	2,877,000
Marketing	1,032,000	1,015,000
General and administrative	5,058,000	3,998,000
Gain on sale of business	0	(195,000)
Total Operating Expenses	8,021,000	7,695,000
Operating Loss	(4,791,000)	(4,839,000)
Other income (expense)
Gain on forgiveness of debt and accrued interest	(1,062,000)	0
Income from Employee Retention Credit	273,000	0
Interest expense, net	(36,000)	(32,000)
Miscellaneous	0	65,000
Other income	1,299,000	33,000
Loss Before Taxes	(3,492,000)	(4,806,000)
Income tax expense (benefit)	42,000	(191,000)
Net Loss	$ (3,534,000)	$ (4,615,000)
Net loss per share:
Basic	$ (2.01)	$ (2.66)
Diluted	$ (2.01)	$ (2.66)
Shares used in calculation of net loss per share:
Basic	1,760,000	1,734,000
Diluted	1,760,000	1,734,000

CONDENSED STATEMENTS OF SHAREHO

CONDENSED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) - USD ($)	Total	Common Stock	Additional Paid-In Capital	Retained Earnings (Accumulated Deficit)
Balance, shares at Dec. 31, 2019		1,725,000
Balance, amount at Dec. 31, 2019	$ 11,083,000	$ 16,000	$ 16,039,000	$ (4,972,000)
Issuance of common stock, net, shares		5,000
Issuance of common stock, net, amount	20,000	$ 0	20,000	0
Vesting of restricted stock units offset by repurchase of common stock upon vesting of restricted stock units and awards, shares		16,000
Vesting of restricted stock units offset by repurchase of common stock upon vesting of restricted stock units and awards, amount	(1,000)	$ 1,000	(2,000)	0
Value of stock-based compensation	172,000	0	172,000	0
Common stock issued for accrued liabilities	9,000	$ 0	9,000
Restricted stock award issuance, shares		2,000
Restricted stock award issuance, amount	0	$ 0	0	0
Net loss	(4,615,000)	$ 0	0	(4,615,000)
Balance, shares at Dec. 31, 2020		1,748,000
Balance, amount at Dec. 31, 2020	6,668,000	$ 17,000	16,238,000	(9,587,000)
Issuance of common stock, net, shares		6,000
Issuance of common stock, net, amount	27,000	$ 1,000	26,000	0
Value of stock-based compensation	232,000	0	232,000	0
Net loss	(3,534,000)	$ 0	0	(3,534,000)
Repurchase of common stock upon vesting of restricted stock units, shares		28,000
Repurchase of common stock upon vesting of restricted stock units, amount	(200,000)	$ 0	(200,000)	0
Balance, shares at Dec. 31, 2021		1,782,000
Balance, amount at Dec. 31, 2021	$ 3,193,000	$ 18,000	$ 16,296,000	$ (13,121,000)

CONDENSED STATEMENTS OF CASH FL

CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Operating activities:
Net loss	$ (3,534,000)	$ (4,615,000)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	60,000	477,000
Impairment loss	0	159,000
Gain on sale of business	0	195,000
(Gain) Loss on sale of property and equipment	(6,000)	35,000
Changes in allowance for doubtful accounts	87,000	203,000
Stock-based compensation expense	232,000	172,000
Gain on forgiveness of debt and accrued interest	(1,062,000)	0
Changes in operating assets and liabilities:
Accounts receivable	523,000	1,679,000
Inventories	66,000	135,000
Income tax receivable	237,000	(115,000)
Prepaid expenses and other	(392,000)	(327,000)
Accounts payable	(572,000)	115,000
Accrued liabilities	665,000	623,000
Accrued income taxes	34,000	34,000
Deferred revenue	662,000	40,000
Net cash used in operating activities	(3,000,000)	(1,580,000)
Investing activities:
Purchases of property and equipment	(106,000)	(61,000)
Proceeds from sale of custom print business	0	200,000
Proceeds from sale of property and equipment	16,000	0
Net cash provided by (used in) investing activities	(90,000)	139,000
Financing activities:
Cash dividends paid ($0.70 per share)	(14,000)	(14,000)
Proceeds from issuance of common stock, net	27,000	20,000
Repurchase of common stock upon vesting of restricted stock awards and vesting of restricted stock units	(200,000)	(1,000)
Proceeds from PPP loan	0	1,054,000
Net cash provided by (used in) financing activities	(187,000)	1,059,000
Decrease in cash and cash equivalents and restricted cash	(3,277,000)	(382,000)
Cash and cash equivalents and restricted cash at beginning of year	7,128,000	7,510,000
Cash and cash equivalents and restricted cash at end of year	3,851,000	7,128,000
Supplemental disclosures for cash flow information:
Cash (paid) refunded during the year for income taxes	230,000	(112,000)
Non-cash investing and financing activities:
Purchase of property and equipment included in accounts payable	13,000	11,000
Common stock issued for accrued liabilities	0	9,000
Receivables recorded from sale of custom print business	0	100,000
Receivables recorded from sale of property and equipment	0	195,000
Operating lease right of use asset obtained in exchange for lease obligations	219,000	$ 0
Forgiveness of debt and accrued interest	$ 1,062,000

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2021
Summary of Significant Accounting Policies
1. Summary of Significant Accounting Policies	1. Summary of Significant Accounting Policies Description of Business . Sale of Custom Print Business. Revenue Recognition . Cash and Cash Equivalents and Restricted Cash December 31, 2021 December 31, 2020 Cash and cash equivalents $ 3,766,000 $ 7,128,000 Restricted cash 85,000 — Total cash and cash equivalents and restricted cash $ 3,851,000 $ 7,128,000 Restricted Cash. 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 2021 2020 Beginning balance $ 268,000 $ 65,000 Bad debt provision 71,000 203,000 Accounts written-off 111,000 — Recoveries (95,000 ) — Ending balance $ 355,000 $ 268,000 Inventories December 31 2021 2020 Raw materials $ — $ 32,000 Work-in-process — 2,000 Finished goods 19,000 51,000 $ 19,000 $ 85,000 Prepaid Production Costs. 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 Leasehold improvements 1 –3 years Leases. 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. At March 31, 2020, the impact of COVID-19 was determined to be a triggering event requiring an impairment review of long-lived assets. In 2011, the Company paid News America Marketing In-Store, L.L.C. (“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 was being amortized over the 10-year term of the arrangement. At March 31, 2020, the Company determined the asset was impaired based upon continued revenue declines driven by changes in market conditions due to COVID-19 within the stores that this agreement affords the Company access to. As a result, an impairment of $159,000 was recognized as of March 31, 2020. The Company also shortened the end of the useful life of the underlying asset from March 31, 2021 to December 31, 2020 and recorded remaining amortization expense on a straight-line basis over the remainder of 2020. Amortization expense without the impairment was $158,000 for the year ended December 31, 2020. Restructuring. Sales Taxes. 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. Advertising Costs Net Income (Loss) Per Share Weighted average common shares outstanding for the years ended December 31, 2021 and 2020 were as follows: Year ended December 31 2021 2020 Denominator for basic net loss per share - weighted average shares 1,760,000 1,734,000 Effect of dilutive securities: Stock options, restricted stock units and restricted stock awards — — Denominator for diluted net loss per share - weighted average shares 1,760,000 1,734,000 Due to the net loss incurred during the years ended December 31, 2021 and 2020, all stock awards were anti-dilutive for the period. Immaterial Error in Three and Nine Months Ended September 30, 2021. In accordance with Staff Accounting Bulletin (SAB) 99 (“Materiality”) the Company evaluated this error, including both qualitative and quantitative considerations, and concluded this error did not result in a material misstatement of the previously issued financial statements for the three and nine months ended September 30, 2021. Use of Estimates

Revenue Recognition

Revenue Recognition	12 Months Ended
	Dec. 31, 2021
Revenue Recognition
2. Revenue Recognition	2. 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 been passed 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: Merchandising, On-Pack, and Non-POPS Signage Solutions POPS 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 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 sign solutions. Products . Disaggregation of Revenue In the following table, revenue is disaggregated by major revenue stream and timing of revenue recognition. Year ended December 31, 2021 Services Revenues Products Revenue Total Revenue Timing of revenue recognition: Products and services transferred over time $ 6,659,000 $ — $ 6,659,000 Products and services transferred at a point in time 12,844,000 — 12,844,000 Total $ 19,503,000 $ — $ 19,503,000 Year ended December 31, 2020 Services Revenues Products Revenue Total Revenue Timing of revenue recognition: Products and services transferred over time $ 10,670,000 $ — $ 10,670,000 Products and services transferred at a point in time 6,234,000 578,000 6,812,000 Total $ 16,904,000 $ 578,000 $ 17,482,000 Contract Costs Sales commissions paid to internal or external sales representatives are eligible for capitalization because 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, 2020 $ 180,000 Reclassification of beginning deferred revenue to revenue, as a result of performance obligations satisfied (180,000 ) Cash received in advance and not recognized as revenue 842,000 Balance at December 31, 2021 $ 842,000 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. Among our contracts with an expected duration of greater than one year, we anticipate that revenue of $111,000 and $57,000 related to performance obligations that are unsatisfied (or partially unsatisfied) as of December 31, 2021 will be recognized during 2022 and 2023, respectively.

Property and Equipment

Property and Equipment	12 Months Ended
	Dec. 31, 2021
Property and Equipment
Property and Equipment	3. Property and Equipment. 2021 2020 Property and Equipment: Production tooling, machinery and equipment $ 27,000 $ 2,349,000 Office furniture and fixtures 95,000 425,000 Computer equipment and software 753,000 1,447,000 Leasehold improvements 19,000 — Construction in-progress 4,000 17,000 898,000 4,238,000 Accumulated depreciation and amortization (785,000 ) (4,163,000 ) Net Property and Equipment $ 113,000 $ 75,000 Depreciation expense for the years ended December 31, 2021 and 2020 was $60,000 and $314,000, respectively. During December 2020, in connection with the outsourcing of most printing operations, the Company sold property and equipment with a net book value of $230,000, for $195,000, resulting in a loss on sale of $35,000. The proceeds were in the form of receivables due in four equal amounts due in June and December 2021 and June and December 2022. The receivables that were due in 2021 were collected.

Leases

Leases	12 Months Ended
	Dec. 31, 2021
Leases
Leases	4. Leases. The Company’s leases include options to renew. The exercise of lease renewal options is at the Company’s 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. The Company regularly evaluates the renewal options and when they are reasonably certain of exercise, the Company includes the renewal period in its lease term. The Company used its incremental borrowing rate of approximately 4.8% in determining the present value of the lease payments based on the information available at the lease commencement date. The cost components of the Company’s operating leases were as follows: Year ended December 31, 2021 Prior Corporate Corporate Additional Operating Headquarters Headquarters Office Space Warehouse Leases Operating lease cost $ 38,000 $ 28,000 $ — $ 13,000 $ 79,000 Variable lease cost 24,000 16,000 — 12,000 52,000 Short-term lease cost — — 28,000 — 28,000 Total $ 62,000 $ 44,000 $ 28,000 $ 25,000 $ 159,000 Year ended December 31, 2020 Prior Corporate Corporate Additional Operating Headquarters Headquarters Office Space Warehouse Leases Operating lease cost $ 150,000 $ — $ — $ — $ 150,000 Variable lease cost 104,000 — — — 104,000 Short-term lease cost — — 40,000 — 40,000 Total $ 254,000 $ — $ 40,000 $ — $ 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 is corporate headquarters and its warehouse operating leases are as follows as of December 31, 2021: 2022 $ 83,000 2023 72,000 2024 40,000 Total lease payments $ 195,000 Less: Interest (11,000 ) Present value of lease liabilities $ 184,000 The remaining lease terms as of December 31, 2021 for the Company’s corporate headquarters and its warehouse leases were 2.5 years and 1.2 years, respectively. The cash outflow for operating leases for the years ended December 31, 2021 and December 31, 2020 were $97,000 and $222,000, respectively. Operating lease liabilities and right-of-use assets were increased for new non-cash leases by $219,000 for the year ended December 31, 2021.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2021
Commitments and Contingencies
Commitments and Contingencies	5. Commitments and Contingencies. Legal. In July 2019, the Company filed 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 the Company filed a response brief on November 11, 2019. The Company also moved to dismiss the counterclaim against it. The court heard oral arguments from both parties on January 14, 2020, and subsequently denied both motions. On July 10, 2020 the parties cross-moved for summary judgment on the counterclaim. On December 7, 2020, the Court granted News America’s motion for summary judgment on the counterclaim in part, requiring Insignia to strike certain allegations from its complaint and finding News America’s request for attorneys’ fees and costs premature. Following the close of discovery, on August 27, 2021, News America moved for summary judgment on Insignia’s claims. On September 17, 2021, Insignia filed its response opposing summary judgment. On October 1, 2021, News America filed its reply brief. The court cancelled a hearing on the motion originally scheduled for January 26, 2022, and referred the case to mediation. News America’s summary judgment motion remains pending. At this stage of the proceedings, the Company is unable to determine the likelihood of an unfavorable outcome or estimate any potential resulting liability. Retailer Agreements

Shareholders' Equity

Shareholders' Equity	12 Months Ended
	Dec. 31, 2021
Shareholders' Equity
Shareholders' Equity	6. 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, 2021 and 2020: Year ended December 31 2021 2020 Cost of sales $ 24,000 $ 5,000 Selling 25,000 38,000 Marketing 12,000 (1,000 ) General and administrative 171,000 130,000 $ 232,000 $ 172,000 The Company uses the Black-Scholes option pricing model to estimate fair value of stock-based awards with the following weighted average assumptions: 2021 2020 Stock Purchase Plan Options: Expected life (years) 1.0 1.0 Expected volatility 142 % 59 % Dividend yield 0 % 0 % Risk-free interest rate 0.1 % 1.6 % The Company uses the graded attribution method to recognize expense for unvested stock-based awards. Forfeitures are recognized as incurred. 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 128,571 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 2021 and 2020 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, 2020 117,661 42,416 $ 16.66 Restricted stock units and awards granted - 2018 Plan (31,782 ) — Cancelled or forfeited - 2018 Plan options 1,070 (1,070 ) 13.65 Cancelled or forfeited - 2018 Plan restricted stock and restricted stock units 3,091 — 9.58 Cancelled or forfeited - 2013 Plan options 2,241 (2,241 ) 15.54 Cancelled or forfeited - 2013 Plan restricted stock and restricted stock units 1,450 — 13.34 Cancelled or forfeited - 2003 Plan options — (8,607 ) 24.23 Balance at December 31, 2020 93,731 30,498 14.69 Restricted stock units and awards granted - 2018 Plan (5,514 ) — Cancelled or forfeited - 2018 Plan options 2,584 (2,584 ) 13.36 Cancelled or forfeited - 2018 Plan restricted stock and restricted stock units 5,508 — 8.69 Stock options exercised — (1,973 ) 13.59 $ 17,100 Cancelled or forfeited - 2013 Plan options 292 (292 ) 15.54 Cancelled or forfeited - 2013 Plan restricted stock and restricted stock units 1,047 — 12.39 Cancelled or forfeited - 2003 Plan options — (6,527 ) 19.66 Balance at December 31, 2021 97,648 19,122 $ 13.23 The following table summarizes information about the stock options outstanding at December 31, 2021: Options Outstanding Options Exercisable 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 $8.26 - $13.65 13,759 5.07 years $ 12.33 10,363 $ 11.90 $15.54 - $21.63 5,363 2.39 years 15.54 5,363 15.54 19,122 4.32 years $ 13.23 15,726 $ 13.14 Options outstanding under the Plans expire at various dates during the period from May 2022 through August 2028. Options outstanding at December 31, 2021 had an aggregate intrinsic value of $188,322. Options outstanding at December 31, 2020 had no intrinsic value. Options exercisable at December 31, 2021 had a weighted average remaining life of 3.82 years and an aggregate intrinsic value of $156,298. No options were granted in either 2021 or 2020. The number of options exercisable at December 31, 2020 was 21,123. During the year ended December 31, 2021, no equity awards were issued by the Company, except those awarded to non-employee members of the Board of Directors. In June 2021, non-employee members of the Board of Directors received restricted stock grants totaling 5,514 shares pursuant to the 2018 Plan. The shares underlying the awards were assigned a value of $8.16 per share, which was the closing price of the Company’s common stock on the date of grant, for a total grant date value of $45,000. The shares are scheduled to vest the earlier of June 10, 2022 or the day immediately preceding the date of the next annual shareholder meeting. During the year ended December 31, 2020, the Company issued 24,282 restricted stock units. The shares underlying the awards were assigned a weighted average value of $6.00 per share, which was the closing price of the Company’s common stock on the date of grants. These awards vested on December 31, 2021. During December 2020, non-employee members of the Board of Directors received restricted stock grants totaling 7,500 shares. The shares underlying the awards were assigned a value of $6.00 per share, which was the closing price of the Company’s common stock on the date of grants, for a total value of $45,000, and were vested in full the day immediately preceding the date of the 2021 annual shareholder meeting, June 9, 2021. Restricted stock and restricted stock unit transactions during the years ended December 31, 2021 and 2020 are summarized as follows: Number of Shares Weighted average grant date fair value Unvested shares at January 1, 2020 44,659 $ 12.16 Granted 31,782 6.00 Vested (22,315 ) 11.36 Forfeited or surrendered (4,162 ) 10.30 Unvested shares at December 31, 2020 49,964 $ 8.76 Granted 5,514 8.16 Vested (40,392 ) 8.33 Forfeited or surrendered (6,555 ) 9.28 Unvested shares at December 31, 2021 8,531 $ 10.01 As of December 31, 2021, there was approximately $5,000 of total unrecognized compensation costs related to outstanding stock options, which is expected to be recognized over a weighted average period of 0.6 years. As of December 31, 2021, there was approximately $30,000 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 0.5 years. Employee Stock Purchase Plan. Dividends.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2021
Income Taxes
Income Taxes	7. Income Taxes. Year Ended December 31 2021 2020 Current taxes - Federal $ — $ (233,000 ) Current taxes - State 42,000 42,000 Income tax expense (benefit) $ 42,000 $ (191,000 ) The actual tax benefit attributable to loss before taxes differs from the expected tax benefit computed by applying the U.S. federal corporate income tax rate of 21% as follows: Year Ended December 31 2021 2020 Federal statutory rate 21.0 % 21.0 % Stock-based awards 2.0 (0.8 ) State taxes 3.6 3.6 Impact of uncertain tax positions (1.0 ) (0.7 ) Valuation allowance (34.3 ) (19.6 ) PPP forgiveness 7.5 — Other — 0.8 Effective federal income tax rate (1.2 )% 4.3 % Components of resulting noncurrent deferred tax assets (liabilities) are as follows: As of December 31 2021 2020 Deferred tax assets Accrued expenses $ 507,000 $ 376,000 Inventory reserve 23,000 9,000 Stock-based awards 31,000 65,000 Reserve for bad debts 88,000 33,000 Net operating loss and credit carryforwards 2,507,000 1,422,000 Other 33,000 47,000 Depreciation 33,000 52,000 Valuation allowance (3,146,000 ) (1,946,000 ) Total deferred tax assets $ 76,000 $ 58,000 Deferred tax liabilities Prepaid expenses $ (76,000 ) $ (58,000 ) Total deferred tax liabilities (76,000 ) (58,000 ) Net deferred income tax liabilities $ — $ — As of December 31, 2021, the Company had a Federal net operating loss (NOL) to carry forward of approximately $9,700,000 and state NOLs of approximately $7,400,000 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. In March 2020, Congress passed the Coronavirus Aid, Relief and Economic Security (“CARES”) Act. The CARES Act, among other provisions, allows for companies to carry back federal NOLs generated in 2018, 2019 and 2020 for up to five years for refunds of federal taxes paid. This provision created an opportunity for the Company to utilize NOLs not previously expected to be utilized. Thus in 2020, the Company reversed approximately $215,000 of its valuation allowance against the NOLs in its deferred tax assets which the Company carried back to claim a refund of federal taxes paid. The Company received this refund in 2021. 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, 2021 and 2020 was $1,200,000 and $943,000, respectively. The Company has recorded a liability of $711,000 and $677,000 for uncertain tax positions taken in tax returns in previous years as of December 31, 2021 and 2020, 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 2018 and forward are open for examination and assessment by the Internal Revenue Service. With limited exceptions, tax years prior to 2018 are no longer open in major state and local tax jurisdictions. The Company believes that it is reasonably possible that a decrease of up to $665,000 in unrecognized tax benefits related to state exposures may be necessary in the third quarter of 2022, which would reduce accrued income taxes and increase income tax benefit. A reconciliation of the beginning and ending amount of the liability for uncertain tax positions is as follows: Balance at January 1, 2020 $ 643,000 Increases due to interest and state tax 34,000 Balance at December 31, 2020 677,000 Increases due to interest and state tax 34,000 Balance at December 31, 2021 $ 711,000

Employee Benefit Plans

Employee Benefit Plans	12 Months Ended
	Dec. 31, 2021
Employee Benefit Plans
Employee Benefit Plans	8. Employee Benefit Plans

Concentrations

Concentrations	12 Months Ended
	Dec. 31, 2021
Concentrations
Concentrations	9. Concentrations. Major Customers Export Sales

Loan

Loan	12 Months Ended
	Dec. 31, 2021
Loan
Loan	10. Loan. In accordance with the requirements of the CARES Act, the Company used the proceeds from the loan exclusively for qualified expenses under the PPP, including payroll costs, rent and utility costs, as further detailed in the CARES Act and applicable guidance issued by the SBA. Interest was accrued on the outstanding balance of the Note at a rate of 1.00% per annum. The Note was scheduled to mature on April 22, 2022 and required 18 equal monthly payments of principal and interest. The Company’s application for forgiveness of the amount due under the Note, including accrued interest, was approved by the SBA on January 29, 2021. Accordingly, for the year ended December 31, 2021 the debt of $1,054,000, plus accrued interest of $8,000 was eliminated with a gain on debt extinguishment included in other income.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2021
Summary of Significant Accounting Policies
Description of Business	Description of Business .
Sale of our Custom Print Business	Sale of Custom Print Business.
Revenue Recognition	Revenue Recognition .
Cash and Cash Equivalents	Cash and Cash Equivalents and Restricted Cash December 31, 2021 December 31, 2020 Cash and cash equivalents $ 3,766,000 $ 7,128,000 Restricted cash 85,000 — Total cash and cash equivalents and restricted cash $ 3,851,000 $ 7,128,000
Fair Value of Financial Measurements	Fair Value of Financial Measurements . 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.
Restricted Cash	Restricted Cash.
Accounts Receivable	Accounts Receivable . Changes in the Company’s allowance for doubtful accounts are as follows: December 31 2021 2020 Beginning balance $ 268,000 $ 65,000 Bad debt provision 71,000 203,000 Accounts written-off 111,000 — Recoveries (95,000 ) — Ending balance $ 355,000 $ 268,000
Inventories	Inventories December 31 2021 2020 Raw materials $ — $ 32,000 Work-in-process — 2,000 Finished goods 19,000 51,000 $ 19,000 $ 85,000 Prepaid Production Costs. 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 Leasehold improvements 1 –3 years
Leases	Leases.
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. At March 31, 2020, the impact of COVID-19 was determined to be a triggering event requiring an impairment review of long-lived assets. In 2011, the Company paid News America Marketing In-Store, L.L.C. (“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 was being amortized over the 10-year term of the arrangement. At March 31, 2020, the Company determined the asset was impaired based upon continued revenue declines driven by changes in market conditions due to COVID-19 within the stores that this agreement affords the Company access to. As a result, an impairment of $159,000 was recognized as of March 31, 2020. The Company also shortened the end of the useful life of the underlying asset from March 31, 2021 to December 31, 2020 and recorded remaining amortization expense on a straight-line basis over the remainder of 2020. Amortization expense without the impairment was $158,000 for the year ended December 31, 2020.
Use of Estimates	Use of Estimates
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.
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, 2021 and 2020 were as follows: Year ended December 31 2021 2020 Denominator for basic net loss per share - weighted average shares 1,760,000 1,734,000 Effect of dilutive securities: Stock options, restricted stock units and restricted stock awards — — Denominator for diluted net loss per share - weighted average shares 1,760,000 1,734,000 Due to the net loss incurred during the years ended December 31, 2021 and 2020, all stock awards were anti-dilutive for the period.
Restructuring	Restructuring.
Sales Taxes	Sales Taxes.
Income Taxes	Income Taxes
Immaterial Error	Immaterial Error in Three and Nine Months Ended September 30, 2021. In accordance with Staff Accounting Bulletin (SAB) 99 (“Materiality”) the Company evaluated this error, including both qualitative and quantitative considerations, and concluded this error did not result in a material misstatement of the previously issued financial statements for the three and nine months ended September 30, 2021.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2021
Summary of Significant Accounting Policies
Schedule of cash and cash equivalents	December 31, 2021 December 31, 2020 Cash and cash equivalents $ 3,766,000 $ 7,128,000 Restricted cash 85,000 — Total cash and cash equivalents and restricted cash $ 3,851,000 $ 7,128,000
Allowance for doubtful accounts	December 31 2021 2020 Beginning balance $ 268,000 $ 65,000 Bad debt provision 71,000 203,000 Accounts written-off 111,000 — Recoveries (95,000 ) — Ending balance $ 355,000 $ 268,000
Inventories	December 31 2021 2020 Raw materials $ — $ 32,000 Work-in-process — 2,000 Finished goods 19,000 51,000 $ 19,000 $ 85,000
Schedule of 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 Leasehold improvements 1 –3 years
Weighted average common shares outstanding	Year ended December 31 2021 2020 Denominator for basic net loss per share - weighted average shares 1,760,000 1,734,000 Effect of dilutive securities: Stock options, restricted stock units and restricted stock awards — — Denominator for diluted net loss per share - weighted average shares 1,760,000 1,734,000

Revenue Recognition (Tables)

Revenue Recognition (Tables)	12 Months Ended
	Dec. 31, 2021
Revenue Recognition
Deferred revenue	Year ended December 31, 2021 Services Revenues Products Revenue Total Revenue Timing of revenue recognition: Products and services transferred over time $ 6,659,000 $ — $ 6,659,000 Products and services transferred at a point in time 12,844,000 — 12,844,000 Total $ 19,503,000 $ — $ 19,503,000 Year ended December 31, 2020 Services Revenues Products Revenue Total Revenue Timing of revenue recognition: Products and services transferred over time $ 10,670,000 $ — $ 10,670,000 Products and services transferred at a point in time 6,234,000 578,000 6,812,000 Total $ 16,904,000 $ 578,000 $ 17,482,000 Balance at December 31, 2020 $ 180,000 Reclassification of beginning deferred revenue to revenue, as a result of performance obligations satisfied (180,000 ) Cash received in advance and not recognized as revenue 842,000 Balance at December 31, 2021 $ 842,000

Property and Equipment (Tables)

Property and Equipment (Tables)	12 Months Ended
	Dec. 31, 2021
Property and Equipment
Property and equipment	2021 2020 Property and Equipment: Production tooling, machinery and equipment $ 27,000 $ 2,349,000 Office furniture and fixtures 95,000 425,000 Computer equipment and software 753,000 1,447,000 Leasehold improvements 19,000 — Construction in-progress 4,000 17,000 898,000 4,238,000 Accumulated depreciation and amortization (785,000 ) (4,163,000 ) Net Property and Equipment $ 113,000 $ 75,000

Lease (Tables)

Lease (Tables)	12 Months Ended
	Dec. 31, 2021
Leases
Cost components of operating leases	Year ended December 31, 2021 Prior Corporate Corporate Additional Operating Headquarters Headquarters Office Space Warehouse Leases Operating lease cost $ 38,000 $ 28,000 $ — $ 13,000 $ 79,000 Variable lease cost 24,000 16,000 — 12,000 52,000 Short-term lease cost — — 28,000 — 28,000 Total $ 62,000 $ 44,000 $ 28,000 $ 25,000 $ 159,000 Year ended December 31, 2020 Prior Corporate Corporate Additional Operating Headquarters Headquarters Office Space Warehouse Leases Operating lease cost $ 150,000 $ — $ — $ — $ 150,000 Variable lease cost 104,000 — — — 104,000 Short-term lease cost — — 40,000 — 40,000 Total $ 254,000 $ — $ 40,000 $ — $ 294,000
Maturity of Lease Liabilities	2022 $ 83,000 2023 72,000 2024 40,000 Total lease payments $ 195,000 Less: Interest (11,000 ) Present value of lease liabilities $ 184,000

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)	12 Months Ended
	Dec. 31, 2021
Shareholders' Equity
Stock-based compensation expense	Year ended December 31 2021 2020 Cost of sales $ 24,000 $ 5,000 Selling 25,000 38,000 Marketing 12,000 (1,000 ) General and administrative 171,000 130,000 $ 232,000 $ 172,000
Weighted average assumptions	2021 2020 Stock Purchase Plan Options: Expected life (years) 1.0 1.0 Expected volatility 142 % 59 % Dividend yield 0 % 0 % Risk-free interest rate 0.1 % 1.6 %
Stock option activity	Plan Shares Available for Grant Plan Options Outstanding Weighted Average Exercise Price Per Share Aggregate Intrinsic Value Balance at January 1, 2020 117,661 42,416 $ 16.66 Restricted stock units and awards granted - 2018 Plan (31,782 ) — Cancelled or forfeited - 2018 Plan options 1,070 (1,070 ) 13.65 Cancelled or forfeited - 2018 Plan restricted stock and restricted stock units 3,091 — 9.58 Cancelled or forfeited - 2013 Plan options 2,241 (2,241 ) 15.54 Cancelled or forfeited - 2013 Plan restricted stock and restricted stock units 1,450 — 13.34 Cancelled or forfeited - 2003 Plan options — (8,607 ) 24.23 Balance at December 31, 2020 93,731 30,498 14.69 Restricted stock units and awards granted - 2018 Plan (5,514 ) — Cancelled or forfeited - 2018 Plan options 2,584 (2,584 ) 13.36 Cancelled or forfeited - 2018 Plan restricted stock and restricted stock units 5,508 — 8.69 Stock options exercised — (1,973 ) 13.59 $ 17,100 Cancelled or forfeited - 2013 Plan options 292 (292 ) 15.54 Cancelled or forfeited - 2013 Plan restricted stock and restricted stock units 1,047 — 12.39 Cancelled or forfeited - 2003 Plan options — (6,527 ) 19.66 Balance at December 31, 2021 97,648 19,122 $ 13.23
Stock options outstanding	Options Outstanding Options Exercisable 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 $8.26 - $13.65 13,759 5.07 years $ 12.33 10,363 $ 11.90 $15.54 - $21.63 5,363 2.39 years 15.54 5,363 15.54 19,122 4.32 years $ 13.23 15,726 $ 13.14
Restricted stock and restricted stock unit activity	Number of Shares Weighted average grant date fair value Unvested shares at January 1, 2020 44,659 $ 12.16 Granted 31,782 6.00 Vested (22,315 ) 11.36 Forfeited or surrendered (4,162 ) 10.30 Unvested shares at December 31, 2020 49,964 $ 8.76 Granted 5,514 8.16 Vested (40,392 ) 8.33 Forfeited or surrendered (6,555 ) 9.28 Unvested shares at December 31, 2021 8,531 $ 10.01

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2021
Income Taxes
Income tax benefit	Year Ended December 31 2021 2020 Current taxes - Federal $ — $ (233,000 ) Current taxes - State 42,000 42,000 Income tax expense (benefit) $ 42,000 $ (191,000 )
Reconciliation of effective federal income tax rate	Year Ended December 31 2021 2020 Federal statutory rate 21.0 % 21.0 % Stock-based awards 2.0 (0.8 ) State taxes 3.6 3.6 Impact of uncertain tax positions (1.0 ) (0.7 ) Valuation allowance (34.3 ) (19.6 ) PPP forgiveness 7.5 — Other — 0.8 Effective federal income tax rate (1.2 )% 4.3 %
Deferred tax assets (liabilities)	As of December 31 2021 2020 Deferred tax assets Accrued expenses $ 507,000 $ 376,000 Inventory reserve 23,000 9,000 Stock-based awards 31,000 65,000 Reserve for bad debts 88,000 33,000 Net operating loss and credit carryforwards 2,507,000 1,422,000 Other 33,000 47,000 Depreciation 33,000 52,000 Valuation allowance (3,146,000 ) (1,946,000 ) Total deferred tax assets $ 76,000 $ 58,000 Deferred tax liabilities Prepaid expenses $ (76,000 ) $ (58,000 ) Total deferred tax liabilities (76,000 ) (58,000 ) Net deferred income tax liabilities $ — $ —
Uncertain tax positions	Balance at January 1, 2020 $ 643,000 Increases due to interest and state tax 34,000 Balance at December 31, 2020 677,000 Increases due to interest and state tax 34,000 Balance at December 31, 2021 $ 711,000

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details) - USD ($)	Dec. 31, 2021	Dec. 31, 2020
Summary of Significant Accounting Policies
Cash and cash equivalents	$ 3,766,000	$ 7,128,000
Restricted cash	85,000	0
Total cash, cash equivalents and retricted cash	$ 3,851,000	$ 7,128,000

Summary of Significant Accoun_5

Summary of Significant Accounting Policies (Details 1) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Summary of Significant Accounting Policies
Beginning balance	$ 268,000	$ 65,000
Bad debt provision	71,000	203,000
Accounts written-off	111,000	0
Recoveries	(95,000)	0
Ending balance	$ 355,000	$ 268,000

Summary of Significant Accoun_6

Summary of Significant Accounting Policies (Details 2) - USD ($)	Dec. 31, 2021	Dec. 31, 2020
Summary of Significant Accounting Policies
Raw materials	$ 0	$ 32,000
Work-in-process	0	2,000
Finished goods	51,000	19,000
Inventories	$ 19,000	$ 85,000

Summary of Significant Accoun_7

Summary of Significant Accounting Policies (Details 3)	12 Months Ended
	Dec. 31, 2021
Production Tooling, Machinery and Equipment | Minimum
Estimated useful lives	1
Production Tooling, Machinery and Equipment | Maximum
Estimated useful lives	6
Office Furniture and Fixtures | Minimum
Estimated useful lives	1
Office Furniture and Fixtures | Maximum
Estimated useful lives	3
Computer Equipment and Software | Minimum
Estimated useful lives	3
Computer Equipment and Software | Maximum
Estimated useful lives	5
Leasehold Improvements | Minimum
Estimated useful lives	1
Leasehold Improvements | Maximum
Estimated useful lives	3

Summary of Significant Accoun_8

Summary of Significant Accounting Policies (Details 5) - shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Summary of Significant Accounting Policies
Denominator for basic net loss per share - weighted average shares	1,760,000	1,734,000
Effect of dilutive securities: stock options, restricted stock and restricted stock units	0	0
Denominator for diluted net loss per share - weighted average shares	1,760,000	1,734,000

Summary of Significant Accoun_9

Summary of Significant Accounting Policies (Details Narrative) - USD ($)	1 Months Ended		3 Months Ended			9 Months Ended	12 Months Ended
	Dec. 31, 2021	Aug. 31, 2020	Dec. 31, 2021	Sep. 30, 2021	Mar. 31, 2021	Sep. 30, 2021	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2011
Impairment loss					$ 159,000
Amortization								$ 158,000
Term of Agreement								10 years	10 years
Cash received		$ 200,000
Short-term receivable		75,000
Long-term receivable		25,000
Remaining receivable balance	$ 25,000		$ 25,000				$ 25,000
Gain on sale of print business		195,000					0	$ 195,000
Insured cash sweep account	$ 3,849,000		3,849,000				3,849,000	7,113,000
Insured cash sweep account	19.00%
pre tax restructuring charges	$ 201,000						201,000
Advertising expense							34,000	69,000
Benefits under employee retentation credit				$ 293,000
Benefits reduced due to filling and preparation costs				20,000
Net benefit after deducting filling and preparation costs				273,000
Receivables recorded from sale of property and equipment							0	195,000
Sale of custom print business		$ 300,000
Net loss							$ (3,534,000)	$ (4,615,000)
Decrease net loss per share							$ (2.01)	$ (2.66)
Impact of Error Adjustment
Net loss			$ 273,000	$ 273,000		$ 273,000
Decrease net loss per share			$ 0.15	$ 0.15		$ 0.15
Cost of Sales
pre tax restructuring charges	81,000
Operating Expenses
pre tax restructuring charges	$ 120,000

Revenue Recognition (Details)

Revenue Recognition (Details) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Total Net Sales	$ 19,503,000	$ 17,482,000
Service [Member]
Total Net Sales	19,503,000	16,904,000
Product [Member]
Total Net Sales	0	578,000
Products and Services Transferred Over Time
Total Net Sales	6,659,000	10,670,000
Products and Services Transferred Over Time | Service [Member]
Total Net Sales	6,659,000	10,670,000
Products and Services Transferred Over Time | Product [Member]
Total Net Sales	0	0
Products and Services Transferred at a Point in Time
Total Net Sales	12,844,000	6,812,000
Products and Services Transferred at a Point in Time | Service [Member]
Total Net Sales	12,844,000	6,234,000
Products and Services Transferred at a Point in Time | Product [Member]
Total Net Sales	$ 0	$ 578,000

Revenue Recognition (Details 1)

Revenue Recognition (Details 1)	12 Months Ended
	Dec. 31, 2021USD ($)
Revenue Recognition
Deferred revenue, beginning	$ 180,000
Reclassification of beginning deferred revenue to revenue, as a result of performance obligations satisfied	180,000
Cash received in advance and not recognized as revenue	842,000
Deferred revenue, ending	$ 842,000

Revenue Recognition (Details Na

Revenue Recognition (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Revenue	$ 19,503,000	$ 17,482,000
2022
Revenue	111,000
2023
Revenue	$ 57,000

Property and Equipment (Details

Property and Equipment (Details) - USD ($)	Dec. 31, 2021	Dec. 31, 2020
Property and equipment, gross	$ 898,000	$ 4,238,000
Accumulated depreciation and amortization	(785,000)	(4,163,000)
Property and equipment, net	113,000	75,000
Production Tooling, Machinery and Equipment
Property and equipment, gross	27,000	2,349,000
Office Furniture And Fixtures
Property and equipment, gross	95,000	425,000
Computer Equipment and Software
Property and equipment, gross	753,000	1,447,000
Leasehold Improvements
Property and equipment, gross	19,000	0
Construction in Progress
Property and equipment, gross	$ 4,000	$ 17,000

Property and Equipment (Detai_2

Property and Equipment (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Property and Equipment
Depreciation expense	$ 60,000	$ 314,000
Net book value of property plant and equipment		230,000
Receivables recorded from sale of property and equipment	$ 0	195,000
Loss on sale of property and equipment		$ (35,000)

Leases (Details)

Leases (Details) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Operating lease cost	$ 79,000	$ 150,000
Variable lease cost	52,000	104,000
Short-term lease cost	28,000	40,000
Total	159,000	294,000
Prior Corporate Headquarters
Operating lease cost	38,000	150,000
Variable lease cost	24,000	104,000
Short-term lease cost	0	0
Total	62,000	254,000
Corporate Headquarters
Operating lease cost	28,000	0
Variable lease cost	16,000	0
Short-term lease cost	0	0
Total	44,000	0
Additional Office Space
Operating lease cost	0	0
Variable lease cost	0	0
Short-term lease cost	28,000	40,000
Total	28,000	40,000
Warehouse
Operating lease cost	13,000	0
Variable lease cost	12,000	0
Short-term lease cost	0	0
Total	$ 25,000	$ 0

Leases (Details 1)

Leases (Details 1)	Dec. 31, 2021USD ($)
Leases
2022	$ 83,000
2023	72,000
2024	40,000
Total lease payments	195,000
Less: interest	(11,000)
Present value of lease liabilities	$ 184,000

Leases (Details Narrative)

Leases (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Restricted cash	$ 85,000
Incremental borrowing rate	4.80%
Increase in Operating lease liabilities and right-of-use	$ 219,000
Cash outflow for operating leases	$ 97,000	$ 222,000
Corporate Headquarters
Remaining lease term	2 years 6 months
Warehouse
Remaining lease term	1 year 2 months 12 days

Commitments and Contingencies (

Commitments and Contingencies (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Commitments and Contingencies
Aggregate purchase obligation	$ 50,000
Fixed and store-based payments	$ 199,000	$ 2,765,000

Shareholders' Equity (Details)

Shareholders' Equity (Details) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Stock-based compensation expense	$ 232,000	$ 172,000
Cost of Sales
Stock-based compensation expense	24,000	5,000
Marketing Expenses
Stock-based compensation expense	12,000	1,000
Selling Expenses
Stock-based compensation expense	25,000	38,000
General and Administrative Expense
Stock-based compensation expense	$ 171,000	$ 130,000

Shareholders Equity (Details 1)

Shareholders Equity (Details 1)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Shareholders' Equity
Expected life	1 year	1 year
Expected volatility	142.00%	59.00%
Dividend yield	0.00%	0.00%
Risk-free interest rate	0.10%	1.60%

Shareholders Equity (Details 2)

Shareholders Equity (Details 2) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Granted	(5,514)	(31,782)
Plan shares available for grant, ending	97,648	93,731
Granted	0	0
Plan options outstanding, ending	19,122	30,498
Weighted average exercise price per share, ending	$ 13.23	$ 14.69
Granted	$ 0	$ 0
Stock options exercised, plan shares available for grant	0
Stock options exercised, plan options outstanding	(1,973)
Stock options exercised, weighted average exercise per share	$ 13.59
Stock options exercised, aggregate intrinsic value	$ 17,100
Stock Option Plan 2013 | Employee Stock Option [Member]
Cancelled or forfeited	292	2,241
Cancelled	$ 292	$ 2,241
Cancelled or forfeited per share	$ 15.54	$ 15.54
Stock Option Plan 2013 | Restricted Stock and Restricted Stock Units
Cancelled or forfeited	1,047	1,450
Cancelled	$ 0	$ 0
Cancelled or forfeited per share	$ 12.39	$ 13.34
Stock Option Plan 2018 | Employee Stock Option [Member]
Cancelled or forfeited	2,584	1,070
Cancelled	$ 2,584	$ 1,070
Cancelled or forfeited per share	$ 13.36	$ 13.65
Stock Option Plan 2018 | Restricted Stock and Restricted Stock Units
Cancelled or forfeited	5,508	3,091
Cancelled	$ 0	$ 0
Cancelled or forfeited per share	$ 8.69	$ 9.58
Stock Option Plan 2003 | Employee Stock Option [Member]
Cancelled or forfeited	0	0
Cancelled	$ 6,527	$ 8,607
Cancelled or forfeited per share	$ 19.66	$ 24.23

Shareholders Equity (Details 3)

Shareholders Equity (Details 3)	12 Months Ended
	Dec. 31, 2021$ / sharesshares
Options outstanding | shares	19,122
Weighted average remaining contractual life outstanding	4 years 3 months 25 days
Weighted average exercise price per share outstanding	$ 13.23
Options exercisable | shares	15,726
Weighted average exercise price per share exercisable	$ 13.14
Exercise Price Range One
Options outstanding | shares	13,759
Weighted average remaining contractual life outstanding	5 years 25 days
Weighted average exercise price per share outstanding	$ 12.33
Options exercisable | shares	10,363
Weighted average exercise price per share exercisable	$ 11.90
Ranges of exercise prices lower	8.26
Ranges of exercise prices upper	$ 13.65
Exercise Price Range Two
Options outstanding | shares	5,363
Weighted average remaining contractual life outstanding	2 years 4 months 20 days
Weighted average exercise price per share outstanding	$ 15.54
Options exercisable | shares	5,363
Weighted average exercise price per share exercisable	$ 15.54
Ranges of exercise prices lower	15.54
Ranges of exercise prices upper	$ 21.63

Shareholders Equity (Details 4)

Shareholders Equity (Details 4) - $ / shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Shareholders' Equity
Restricted stock and restricted stock units outstanding, beginning	49,964	44,659
Granted	5,514	31,782
Vested	(40,392)	(22,315)
Forfeited or surrendered	(6,555)	(4,162)
Restricted stock and restricted stock units outstanding, ending	8,531	49,964
Weighted average grant date fair value outstanding, beginning	$ 8.76	$ 12.16
Granted	8.16	6
Vested	8.33	11.36
Forfeited or surrendered	9.28	10.30
Weighted average grant date fair value outstanding, ending	$ 10.01	$ 8.76

Shareholders Equity (Details Na

Shareholders Equity (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Aggregate intrinsic value of options outstanding	$ 188,322	$ 0
Weighted average remaining life of options exercisable	3 years 9 months 25 days
Aggregate intrinsic value of options exercisable	$ 156,298
Options exercisable	21,123
Unrecognized compensation costs related to stock options	$ 5,000
Unrecognized compensation costs related to restricted stock units	30,000
Stock-based compensation expense	232,000	172,000
Employee Stock [Member]
Stock-based compensation expense	$ 23,000	$ 18,000
Employees purchased shares	4,541	6,152
Shares are reserved for future employee purchases	24,436
Restricted Stock and Restricted Stock Units
Stock-based compensation expense		$ 45,000
Unrecognized compensation costs period of recognition	6 months

Income Taxes (Details)

Income Taxes (Details) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Income Taxes
Current taxes - Federal	$ 0	$ (233,000)
Current taxes - State	42,000	42,000
Income tax expense (benefit)	$ 42,000	$ (191,000)

Income Taxes (Details 1)

Income Taxes (Details 1)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Income Taxes
Federal statutory rate	21.00%	21.00%
Stock based awards	(2.00%)	(0.80%)
State taxes	(3.60%)	(3.60%)
Impact of uncertain tax positions	1.00%	0.70%
Valuation allowance	34.30%	19.60%
PPP forgiveness	7.50%	0.00%
Other	0.00%	(0.80%)
Effective federal income tax rate	(1.20%)	4.30%

Income Taxes (Details 2)

Income Taxes (Details 2) - USD ($)	Dec. 31, 2021	Dec. 31, 2020
Deferred Tax Assets:
Accrued expenses	$ 507,000	$ 376,000
Inventory reserve	23,000	9,000
Stock-based awards	31,000	65,000
Reserve for bad debts	88,000	33,000
Net operating loss and credit carryforwards	2,507,000	1,422,000
Other	33,000	47,000
Depreciation	33,000	52,000
Valuation allowance	(3,146,000)	(1,946,000)
Total deferred tax assets	76,000	58,000
Deferred Tax Liabilities:
Prepaid expenses	(76,000)	(58,000)
Total deferred tax liabilities	(76,000)	(58,000)
Net deferred income tax liabilities	$ 0	$ 0

Income Taxes (Details 3)

Income Taxes (Details 3) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Income Taxes
Liability for uncertain tax positions, beginning	$ 677,000	$ 643,000
Increases due to interest and state tax	34,000	34,000
Liability for uncertain tax positions, ending	$ 711,000	$ 677,000

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Change in the valuation allowance	$ 1,200,000	$ 943,000
Liability for uncertain tax positions	711,000	677,000	$ 643,000	$ 665,000
Deferred tax asset valuation allowance	3,146,000	$ 1,946,000
State And Local Jurisdiction [Member]
Net operating loss to carry forward	7,400,000
Domestic Country [Member]
Net operating loss to carry forward	$ 9,700,000

Employee Benefit Plans (Details

Employee Benefit Plans (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Employee Benefit Plans
Employee contribution percentage	50.00%	0.50%
Matching employer contribution	$ 41,000	$ 62,000

Concentrations (Details Narrati

Concentrations (Details Narrative)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Accounts Receivable | Customer One
Customer's percentage of net sales	19.00%	17.00%
Accounts Receivable | Customer Two
Customer's percentage of net sales	25.00%	10.00%
Sales Revenue, Net | Customer One
Customer's percentage of net sales	15.00%	14.00%
Sales Revenue, Net | Customer Two
Customer's percentage of net sales	12.00%

Loan (Details Narrative)

Loan (Details Narrative)	1 Months Ended	12 Months Ended
	Apr. 30, 2020USD ($)integer	Dec. 31, 2021USD ($)
Loan (Details Narrative)
Debt face amount		$ 1,054,000
Rate of interest per annum	1.00%
Laon maturity date	Apr. 22, 2022
Number of monthly payments of principal and interest | integer	18
Accrued interest		$ 8,000
Paycheck protection program loan amount	$ 1,054,000