Lendway (LDWY) 10-Q 11 May 22 2022 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Mar. 31, 2022	May 09, 2022
Cover [Abstract]
Entity Registrant Name	INSIGNIA SYSTEMS INC/MN
Entity Central Index Key	0000875355
Document Type	10-Q
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Document Period End Date	Mar. 31, 2022
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2022
Entity Common Stock Shares Outstanding		1,786,296
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	1-13471
Entity Incorporation State Country Code	MN
Entity Tax Identification Number	41-1656308
Entity Interactive Data Current	Yes
Entity Address Address Line 1	212 Third Avenue N
Entity Address State Or Province	MN
Entity Address Postal Zip Code	55401
City Area Code	763
Local Phone Number	392-6200
Security 12b Title	Common Stock, $0.01 par value
Trading Symbol	ISIG
Security Exchange Name	NASDAQ
Entity Address Address Line 2	Suite 356
Entity Address City Or Town	Minneapolis

CONDENSED BALANCE SHEETS

CONDENSED BALANCE SHEETS - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Current Assets:
Cash And Cash Equivalents	$ 396,000	$ 3,766,000
Restricted Cash	85,000	85,000
Accounts Receivable, Net	7,465,000	5,247,000
Inventories	31,000	19,000
Income Tax Receivable	5,000	4,000
Prepaid Production Costs	319,000	867,000
Other Prepaid Expense	308,000	366,000
Total Current Assets	8,609,000	10,354,000
Other Assets:
Property And Equipment, Net	107,000	113,000
Operating Lease Right-of-use Assets	164,000	183,000
Total Assets	8,880,000	10,650,000
Current Liabilities:
Accounts Payable	1,877,000	2,539,000
Accrued Liabilities:
Compensation	491,000	464,000
Sales Tax	1,234,000	1,287,000
Other	681,000	1,430,000
Current Portion Of Operating Lease Liabilities	78,000	76,000
Deferred Revenue	397,000	842,000
Total Current Liabilities	4,758,000	6,638,000
Long-term Liabilities:
Accrued Income Taxes	721,000	711,000
Operating Lease Liabilities	88,000	108,000
Total Long-term Liabilities	809,000	819,000
Commitments And Contingencies	0	0
Shareholders' Equity:
Common Stock, Par Value $.01: Authorized Shares - 5,714,000 Issued And Outstanding Shares - 1,786,000 At March 31, 2022 And 1,782,000 At December 31, 2021	18,000	18,000
Additional Paid-in Capital	16,354,000	16,296,000
Accumulated Deficit	(13,059,000)	(13,121,000)
Total Shareholders' Equity	3,313,000	3,193,000
Total Liabilities And Shareholders' Equity	$ 8,880,000	$ 10,650,000

CONDENSED BALANCE SHEETS (Paren

CONDENSED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2022	Dec. 31, 2021
CONDENSED BALANCE SHEETS
Common Stock, Par Value	$ 0.01	$ 0.01
Common Stock, Shares Authorized	5,714,000	5,714,000
Common Stock, Shares Issued	1,786,000	1,748,000
Common Stock, Shares Outstanding	1,782,000	1,748,000

CONDENSED STATEMENTS OF OPERATI

CONDENSED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
CONDENSED STATEMENTS OF OPERATIONS (Unaudited)
Net Services Revenues	$ 6,148,000	$ 5,386,000
Cost Of Services	4,868,000	4,457,000
Gross Profit	1,280,000	929,000
Operating Expenses:
Selling	342,000	516,000
Marketing	259,000	235,000
General And Administrative	606,000	1,937,000
Total Operating Expenses	1,207,000	2,688,000
Operating Income (loss)	73,000	(1,759,000)
Other Income (expense):
Gain On Forgiveness Of Debt And Accrued Interest	0	1,062,000
Other Expense	(3,000)	(27,000)
Total Other Income (expense)	(3,000)	1,035,000
Income (loss) Before Taxes	70,000	(724,000)
Income Tax Expense	8,000	13,000
Net Income (loss)	$ 62,000	$ (737,000)
Net Income (loss) Per Share:
Basics	$ 0.03	$ (0.42)
Dilutedd	$ 0.03	$ (0.42)
Shares Used In Calculation Of Net Income (loss) Per Share:
Basic	1,786,000	1,751,000
Diluted	1,794,000	1,751,000

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, 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	26,000	$ 1,000	25,000	0
Value Of Stock-based Compensation	56,000	0	56,000	0
Net Loss	(737,000)	$ 0	0	(737,000)
Balance, Shares at Mar. 31, 2021		1,754,000
Balance, Amount at Mar. 31, 2021	6,013,000	$ 18,000	16,319,000	(10,324,000)
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)
Issuance Of Common Stock, Net, Shares		4,000
Issuance Of Common Stock, Net, Amount	28,000	$ 0	28,000	0
Value Of Stock-based Compensation	30,000	0	30,000	0
Net Loss	62,000	$ 0	0	62,000
Balance, Shares at Mar. 31, 2022		1,786,000
Balance, Amount at Mar. 31, 2022	$ 3,313,000	$ 18,000	$ 16,354,000	$ (13,059,000)

CONDENSED STATEMENTS OF CASH FL

CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Operating Activities:
Net Income (loss)	$ 62,000	$ (737,000)
Adjustments To Reconcile Net Income (loss) To Net Cash Used In Operating Activities:
Depreciation And Amortization	16,000	21,000
Gain On Sale Of Property And Equipment	0	(7,000)
Changes In Allowance For Doubtful Accounts	(12,000)	24,000
Stock-based Compensation Expense	30,000	56,000
Gain On Forgiveness Of Debt And Accrued Interest	0	(1,062,000)
Changes In Operating Assets And Liabilities:
Accounts Receivable	(2,206,000)	758,000
Inventories	(12,000)	(17,000)
Income Tax Receivable	(1,000)	3,000
Prepaid Expenses And Other	606,000	108,000
Accounts Payable	(654,000)	(568,000)
Accrued Liabilities	(774,000)	590,000
Accrued Income Taxes	10,000	8,000
Deferred Revenue	(445,000)	520,000
Net Cash Used In Operating Activities	(3,380,000)	(303,000)
Investing Activities:
Purchases Of Property And Equipment	(18,000)	(29,000)
Sale Of Property And Equipment	0	16,000
Net Cash Used In Investing Activities	(18,000)	(13,000)
Financing Activities:
Proceeds From Issuance Of Common Stock	28,000	26,000
Net Cash Provided By Financing Activities	28,000	26,000
Decrease In Cash And Cash Equivalents And Restricted Cash	(3,370,000)	(290,000)
Cash And Cash Equivalents And Restricted Cash At Beginning Of Period	3,851,000	7,128,000
Cash And Cash Equivalents And Restricted Cash At End Of Period	481,000	6,838,000
Supplemental Disclosures For Cash Flow Information:
Cash Paid During The Year For Income Taxes	0	(1,000)
Non-cash Financing Activity:
Purchase Of Property And Equipment Included In Accounts Payable	5,000	0
Operating Lease Right-of-use Asset Obtained In Exchange For Lease Obligation	0	33,000
Forgiveness Of Debt And Accrued Interest	$ 0	$ 1,062,000

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2022
Summary of Significant Accounting Policies
1. Summary Of Significant Accounting Policies	1. Summary of Significant Accounting Policies. Description of Business . Basis of Presentation . Cash and Cash Equivalents and Restricted Cash. March 31, December 31, 2022 2021 Cash and cash equivalents $ 396,000 $ 3,766,000 Restricted cash 85,000 85,000 Total cash, cash equivalents and restricted cash $ 481,000 $ 3,851,000 Inventories . Property and Equipment . March 31, December 31, 2022 2021 Property and Equipment: Production tooling, machinery and equipment $ 27,000 $ 27,000 Office furniture and fixtures 95,000 95,000 Computer equipment and software 757,000 753,000 Leasehold improvements 19,000 19,000 Construction in-progress 10,000 4,000 908,000 898,000 Accumulated depreciation and amortization (801,000 ) (785,000 ) Net Property and Equipment $ 107,000 $ 113,000 Depreciation expense was approximately $16,000 and $21,000 in the three months ended March 31, 2022 and 2021, respectively. Stock-Based Compensation During the three months ended March 31, 2022 and 2021, no stock options or restricted stock were issued by the Company. The Company estimated the fair value of stock-based awards granted during the three months ended March 31, 2022, under the Company’s employee stock purchase plan using the following weighted average assumptions: expected life of 1.0 year, expected volatility of 168.7%, dividend yield of 0% and risk-free interest rate of 0.4%. The Company recorded total stock-based compensation expense of $30,000 and $56,000 for the three months ended March 31, 2022 and 2021, respectively. Net Income (Loss) per Share . Options to purchase approximately 14,000 shares of common stock with a weighted average exercise price of 12.60, were outstanding at March 31, 2022 and were not included in the computation of common stock equivalents for the three months ended March 31, 2022 because their exercise prices were higher than the average fair market value of the common stock during the reporting period. Due to the net loss incurred during the three months ended March 31, 2021 all outstanding stock options were anti-dilutive for the periods. Weighted average common shares outstanding for the three months ended March 31, 2022 and 2021 were as follows: Three months ended March 31 2022 2021 Denominator for basic net income (loss) per share - weighted average shares 1,786,000 1,751,000 Effect of dilutive securities: Stock options, restricted stock and restricted stock units 8,000 — Denominator for diluted net income (loss) per share - weighted average shares 1,794,000 1,751,000

Revenue Recognition

Revenue Recognition	3 Months Ended
	Mar. 31, 2022
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. Disaggregation of Revenue In the following table, revenue is disaggregated by timing of revenue recognition. Three months ended March 31, 2022 Services Revenues Timing of revenue recognition: Services transferred over time $ 456,000 Services transferred at a point in time 5,692,000 Total $ 6,148,000 Three months ended March 31, 2021 Services Revenues Timing of revenue recognition: Services transferred over time $ 2,025,000 Services transferred at a point in time 3,361,000 Total $ 5,386,000 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 Deferred revenues represent amounts collected from customers in advance of the satisfaction of performance obligations. Significant changes in deferred revenue during the period are as follows: Balance at December 31, 2021 $ 842,000 Reclassification of beginning deferred revenue to revenue, as a result of performance obligations satisfied (478,000 ) Cash received in advance and not recognized as revenue 33,000 Balance at March 31, 2022 $ 397,000 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 $84,000 and $57,000 related to performance obligations that are unsatisfied (or partially unsatisfied) as of March 31, 2022 will be recognized during the remainder of fiscal 2022 and 2023, respectively.

Lease

Lease	3 Months Ended
	Mar. 31, 2022
Lease
3. Lease	3. 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 for the periods ended March 31, 2022 and 2021: Three months ended March 31, 2022 Prior Corporate Corporate Additional Operating Headquarters Headquarters Office Space Warehouse Leases Operating lease cost $ — $ 17,000 $ — $ 4,000 $ 21,000 Variable lease cost — 10,000 — 3,000 13,000 Total $ — $ 27,000 $ — $ 7,000 $ 34,000 Three months ended March 31, 2021 Prior Corporate Corporate Additional Operating Headquarters Headquarters Office Space Warehouse Leases Operating lease cost $ 38,000 $ — $ — $ — $ 38,000 Variable lease cost 24,000 — — — 24,000 Short-term lease cost — — 11,000 — 11,000 Total $ 62,000 $ — $ 11,000 $ — $ 73,000 Variable lease costs consist primarily of taxes, insurance, and common area or other maintenance costs which are paid based on actual costs incurred by the lessor. Maturities of the Company’s lease liabilities for its corporate headquarters and its warehouse operating leases are as follows as of March 31, 2022: Maturity of Lease Liabilities Leases 2022 $ 63,000 2023 72,000 2024 40,000 Total lease payments 175,000 Less: Interest (9,000 ) Present value of lease liabilities $ 166,000 The remaining lease terms as of March 31, 2022 for the Company’s corporate headquarters and its warehouse leases were 2.3 years and 1.0 years, respectively. The cash outflows for operating leases for the three months ended March 31, 2022 and March 31, 2021 were $21,000 and $68,000, respectively.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2022
Income Taxes
4. Income Taxes	4. Income Taxes. Deferred income taxes are determined based on the estimated future tax effects of differences between the financial statements and tax basis of assets and liabilities given the provisions of enacted tax laws. In providing for deferred taxes, the Company considers tax regulations of the jurisdictions in which it operates, estimates of future taxable income and available tax planning strategies. If tax regulations, operating results or the ability to implement tax-planning strategies vary, adjustment to the carrying value of deferred tax assets and liabilities may be required. Valuation allowances are recorded related to deferred tax assets based on the “more likely than not” criteria. As of March 31, 2022, and December 31, 2021, the Company had unrecognized tax benefits totaling $721,000 and $711,000, respectively, including interest, which relates to state nexus issues. The amount of the unrecognized tax benefits, if recognized, that would affect the effective income tax rates of future periods is $721,000. The Company believes that it is probable 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.

Concentrations

Concentrations	3 Months Ended
	Mar. 31, 2022
Concentrations
5. Concentrations	Concentrations.

Legal Proceedings

Legal Proceedings	3 Months Ended
	Mar. 31, 2022
Legal Proceedings
6. Legal Proceedings	6. Legal Proceedings. In July 2019, the Company filed suit against News Corporation, News America Marketing FSI L.L.C., and News America Marketing In-Store Services L.L.C. (collectively, “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. The court has rescheduled the hearing on News America’s summary judgment motion for June 22, 2022. At this stage of the proceedings, the Company is unable to determine the likelihood of an unfavorable outcome or estimate any potential resulting liability.

Loan

Loan	3 Months Ended
	Mar. 31, 2022
Loan
7. Loan	7. 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. 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)	3 Months Ended
	Mar. 31, 2022
Summary of Significant Accounting Policies
Description Of Business	Description of Business .
Basis Of Presentation	Basis of Presentation .
Cash And Cash Equivalents And Restricted Cash	Cash and Cash Equivalents and Restricted Cash. March 31, December 31, 2022 2021 Cash and cash equivalents $ 396,000 $ 3,766,000 Restricted cash 85,000 85,000 Total cash, cash equivalents and restricted cash $ 481,000 $ 3,851,000
Inventories	Inventories .
Property And Equipment	Property and Equipment . March 31, December 31, 2022 2021 Property and Equipment: Production tooling, machinery and equipment $ 27,000 $ 27,000 Office furniture and fixtures 95,000 95,000 Computer equipment and software 757,000 753,000 Leasehold improvements 19,000 19,000 Construction in-progress 10,000 4,000 908,000 898,000 Accumulated depreciation and amortization (801,000 ) (785,000 ) Net Property and Equipment $ 107,000 $ 113,000 Depreciation expense was approximately $16,000 and $21,000 in the three months ended March 31, 2022 and 2021, respectively.
Stock-based Compensation	Stock-Based Compensation During the three months ended March 31, 2022 and 2021, no stock options or restricted stock were issued by the Company. The Company estimated the fair value of stock-based awards granted during the three months ended March 31, 2022, under the Company’s employee stock purchase plan using the following weighted average assumptions: expected life of 1.0 year, expected volatility of 168.7%, dividend yield of 0% and risk-free interest rate of 0.4%. The Company recorded total stock-based compensation expense of $30,000 and $56,000 for the three months ended March 31, 2022 and 2021, respectively.
Net Income (loss) Per Share	Net Income (Loss) per Share . Options to purchase approximately 14,000 shares of common stock with a weighted average exercise price of 12.60, were outstanding at March 31, 2022 and were not included in the computation of common stock equivalents for the three months ended March 31, 2022 because their exercise prices were higher than the average fair market value of the common stock during the reporting period. Due to the net loss incurred during the three months ended March 31, 2021 all outstanding stock options were anti-dilutive for the periods. Weighted average common shares outstanding for the three months ended March 31, 2022 and 2021 were as follows: Three months ended March 31 2022 2021 Denominator for basic net income (loss) per share - weighted average shares 1,786,000 1,751,000 Effect of dilutive securities: Stock options, restricted stock and restricted stock units 8,000 — Denominator for diluted net income (loss) per share - weighted average shares 1,794,000 1,751,000

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2022
Summary of Significant Accounting Policies
Cash And Cash Equivalents And Restricted Cash	March 31, December 31, 2022 2021 Cash and cash equivalents $ 396,000 $ 3,766,000 Restricted cash 85,000 85,000 Total cash, cash equivalents and restricted cash $ 481,000 $ 3,851,000
Schedule Of Property And Equipment	March 31, December 31, 2022 2021 Property and Equipment: Production tooling, machinery and equipment $ 27,000 $ 27,000 Office furniture and fixtures 95,000 95,000 Computer equipment and software 757,000 753,000 Leasehold improvements 19,000 19,000 Construction in-progress 10,000 4,000 908,000 898,000 Accumulated depreciation and amortization (801,000 ) (785,000 ) Net Property and Equipment $ 107,000 $ 113,000
Weighted Average Common Shares Outstanding	Three months ended March 31 2022 2021 Denominator for basic net income (loss) per share - weighted average shares 1,786,000 1,751,000 Effect of dilutive securities: Stock options, restricted stock and restricted stock units 8,000 — Denominator for diluted net income (loss) per share - weighted average shares 1,794,000 1,751,000

Revenue Recognition (Tables)

Revenue Recognition (Tables)	3 Months Ended
	Mar. 31, 2022
Revenue Recognition
Deferred Revenue	Balance at December 31, 2021 $ 842,000 Reclassification of beginning deferred revenue to revenue, as a result of performance obligations satisfied (478,000 ) Cash received in advance and not recognized as revenue 33,000 Balance at March 31, 2022 $ 397,000
Disaggregation Of Revenue	Three months ended March 31, 2022 Services Revenues Timing of revenue recognition: Services transferred over time $ 456,000 Services transferred at a point in time 5,692,000 Total $ 6,148,000 Three months ended March 31, 2021 Services Revenues Timing of revenue recognition: Services transferred over time $ 2,025,000 Services transferred at a point in time 3,361,000 Total $ 5,386,000

Lease (Tables)

Lease (Tables)	3 Months Ended
	Mar. 31, 2022
Lease
Cost Components Of Operating Leases	Three months ended March 31, 2022 Prior Corporate Corporate Additional Operating Headquarters Headquarters Office Space Warehouse Leases Operating lease cost $ — $ 17,000 $ — $ 4,000 $ 21,000 Variable lease cost — 10,000 — 3,000 13,000 Total $ — $ 27,000 $ — $ 7,000 $ 34,000 Three months ended March 31, 2021 Prior Corporate Corporate Additional Operating Headquarters Headquarters Office Space Warehouse Leases Operating lease cost $ 38,000 $ — $ — $ — $ 38,000 Variable lease cost 24,000 — — — 24,000 Short-term lease cost — — 11,000 — 11,000 Total $ 62,000 $ — $ 11,000 $ — $ 73,000
Maturity Of Lease Liabilities	Maturity of Lease Liabilities Leases 2022 $ 63,000 2023 72,000 2024 40,000 Total lease payments 175,000 Less: Interest (9,000 ) Present value of lease liabilities $ 166,000

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Summary of Significant Accounting Policies
Cash And Cash Equivalents	$ 396,000	$ 3,766,000
Restricted Cash	85,000	85,000
Total Cash, Cash Equivalents And Retricted Cash	$ 481,000	$ 3,851,000

Summary of Significant Accoun_5

Summary of Significant Accounting Policies (Details 1) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Gross Property And Equipment	$ 908,000	$ 898,000
Accumulated Depreciation And Amortization	(801,000)	(785,000)
Net Property And Equipment	107,000	113,000
Production tooling, machinery and equipment
Gross Property And Equipment	27,000	27,000
Office Furniture and Fixtures
Gross Property And Equipment	95,000	95,000
Computer Equipment and Software
Gross Property And Equipment	757,000	753,000
Leasehold improvements
Gross Property And Equipment	19,000	19,000
Construction in-Progress
Gross Property And Equipment	$ 10,000	$ 4,000

Summary of Significant Accoun_6

Summary of Significant Accounting Policies (Details 2) - shares	1 Months Ended	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Summary of Significant Accounting Policies
Denominator For Basic Net Loss Per Share - Weighted Average Shares	1,751,000	1,786,000	1,751,000
Effect Of Dilutive Securities:
Denominator For Diluted Net Loss Per Share - Weighted Average Shares	1,751,000	1,794,000	1,751,000
Stock Options, Restricted Stock And Restricted Stock		8,000

Summary of Significant Accoun_7

Summary of Significant Accounting Policies (Details Narrative) - USD ($)	1 Months Ended	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2022
Summary of Significant Accounting Policies
Common Stock Outstanding		14,000
Weighted Average Exercise Price		$ 12.60
Depreciation Expense	$ 21,000	$ 16,000
Stock-based Awards Granted, Estimated Life		1 year
Stock-based Awards Granted, Expected Volatility		168.70%
Stock-based Awards Granted, Dividend Yield		0.00%
Stock-based Awards Granted, Risk-free Interest Rate		0.40%
Stock-based Compensation Expense	$ 56,000	$ 30,000

Revenue Recognition (Details)

Revenue Recognition (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Services Revenues
Total Net Sales	$ 6,148,000	$ 5,386,000
Services Transferred Over Time
Total Net Sales	456,000	2,025,000
Services Transferred At a Point in Time
Total Net Sales	$ 5,692,000	$ 3,361,000

Revenue Recognition (Details 1)

Revenue Recognition (Details 1)	3 Months Ended
	Mar. 31, 2022USD ($)
Revenue Recognition
Deferred Revenue, Beginning	$ 842,000
Reclassification Of Beginning Deferred Revenue To Revenue, As A Result Of Performance Obligations Satisfied	478,000
Cash Received In Advance And Not Recognized As Revenue	33,000
Deferred Revenue, Ending	$ 397,000

Revenue Recognition (Details Na

Revenue Recognition (Details Narrative)	3 Months Ended
	Mar. 31, 2022USD ($)
2022
Revenue	$ 84,000
2023
Revenue	$ 57,000

Leases (Details)

Leases (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Operating Lease Cost	$ 21,000	$ 38,000
Variable Lease Cost	13,000	24,000
Short-term Lease Cost		11,000
Total	34,000	73,000
Prior Corporate Headquarters
Operating Lease Cost	0	38,000
Variable Lease Cost	0	24,000
Short-term Lease Cost		0
Total	0	62,000
Corporate Headquarters
Operating Lease Cost	17,000	0
Variable Lease Cost	10,000	0
Short-term Lease Cost		0
Total	27,000	0
Additional Office Space
Operating Lease Cost	0	0
Variable Lease Cost	0	0
Short-term Lease Cost		11,000
Total	0	11,000
Warehouse
Operating Lease Cost	4,000	0
Variable Lease Cost	3,000	0
Short-term Lease Cost		0
Total	$ 7,000	$ 0

Leases (Details 1)

Leases (Details 1)	Mar. 31, 2022USD ($)
Lease
2022	$ 63,000
2023	72,000
2024	40,000
Total Lease Payments	175,000
Less: Interest	(9,000)
Present Value Of Lease Liabilities	$ 166,000

Leases (Details Narrative)

Leases (Details Narrative) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2020
Restricted Cash	$ 85,000
Incremental Borrowing Rate	4.80%
Cash Outflow For Operating Leases	$ 21,000		$ 68,000
Corporate Headquarters
Remaining Lease Term	2 years 3 months 18 days	1 year
Warehouse
Remaining Lease Term	1 year

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2022	Sep. 30, 2021	Mar. 31, 2021	Dec. 31, 2021
Income Taxes
Income Tax Benefit (expense)	$ 8,000	$ 13,000	$ 13,000
Income Tax Rate, Percentage	11.40%	1.80%
Deferred Tax Asset Valuation Allowance				$ 215,000
Decrease Of Unrecognized Tax Benefits	$ 665,000
Discrete Tax Benefit	215,000
Unrecognized Tax Benefits	721,000			$ 711,000
Unrecognized Tax Benefits Effective Income Tax Rates Of Future Periods	$ 721,000

Concentrations (Details Narrati

Concentrations (Details Narrative)	3 Months Ended		12 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Sales Revenue, Net | Customer One
Customer's Percentage Of Net Sales	27.00%	17.00%
Sales Revenue, Net | Customer Three
Customer's Percentage Of Net Sales	11.00%
Sales Revenue, Net | Customer Two
Customer's Percentage Of Net Sales	23.00%	14.00%
Accounts Receivable | Customer One
Customer's Percentage Of Net Sales	23.00%		25.00%
Accounts Receivable | Customer Three
Customer's Percentage Of Net Sales	17.00%
Accounts Receivable | Customer Two
Customer's Percentage Of Net Sales	19.00%		19.00%

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