Lendway (LDWY) 10-Q 10 Aug 22 2022 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jun. 30, 2022	Aug. 08, 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	Jun. 30, 2022
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2022
Entity Common Stock Shares Outstanding		1,793,110
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 Address Line 2	Suite 356
Entity Address City Or Town	Minneapolis
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

CONDENSED BALANCE SHEETS (Unaud

CONDENSED BALANCE SHEETS (Unaudited) - USD ($)	Jun. 30, 2022	Dec. 31, 2021
Current Assets:
Cash and cash equivalents	$ 2,302,000	$ 3,766,000
Restricted cash	85,000	85,000
Accounts receivable, net	4,124,000	5,247,000
Inventories	25,000	19,000
Income tax receivable	6,000	4,000
Prepaid production costs	103,000	867,000
Other prepaid expense	189,000	366,000
Total Current Assets	6,834,000	10,354,000
Other Assets:
Property and equipment, net	97,000	113,000
Operating lease right-of-use assets	145,000	183,000
Total Assets	7,076,000	10,650,000
Current Liabilities:
Accounts payable	1,318,000	2,539,000
Accrued liabilities:
Compensation	557,000	464,000
Sales tax	805,000	1,287,000
Other	648,000	1,430,000
Current portion of operating lease liabilities	75,000	76,000
Deferred revenue	602,000	842,000
Total Current Liabilities	4,005,000	6,638,000
Long-Term Liabilities:
Accrued income taxes	730,000	711,000
Operating lease liabilities	72,000	108,000
Total Long-Term Liabilities	802,000	819,000
Commitments and Contingencies	0	0
Shareholders' Equity:
Common stock, par value $.01: Authorized shares - 5,714,000 Issued and outstanding shares - 1,793,000 at June 30, 2022 and 1,782,000 at December 31, 2021, respectively	18,000	18,000
Additional paid-in capital	16,394,000	16,296,000
Accumulated deficit	(14,143,000)	(13,121,000)
Total Shareholders' Equity	2,269,000	3,193,000
Total Liabilities and Shareholders' Equity	$ 7,076,000	$ 10,650,000

CONDENSED BALANCE SHEETS (Paren

CONDENSED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2022	Dec. 31, 2021
CONDENSED BALANCE SHEETS (Unaudited)
Common Stock, Par Value	$ 0.01	$ 0.01
Common Stock, Shares Authorized	5,714,000	5,714,000
Common Stock, Shares Issued	1,793,000	1,782,000
Common Stock, Shares Outstanding	1,793,000	1,782,000

CONDENSED STATEMENTS OF OPERATI

CONDENSED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
CONDENSED STATEMENTS OF OPERATIONS (Unaudited)
Net services revenues	$ 3,254,000	$ 6,096,000	$ 9,402,000	$ 11,482,000
Cost of services	2,838,000	4,888,000	7,706,000	9,345,000
Gross Profit	416,000	1,208,000	1,696,000	2,137,000
Operating Expenses:
Selling	290,000	465,000	632,000	981,000
Marketing	279,000	260,000	538,000	495,000
General and administrative	948,000	1,336,000	1,554,000	3,273,000
Total Operating Expenses	1,517,000	2,061,000	2,724,000	4,749,000
Operating Loss	(1,101,000)	(853,000)	(1,028,000)	(2,612,000)
Other Income (Expense):
Gain on forgiveness of debt and accrued interest	0	0	0	1,062,000
Other income (expense)	31,000	(31,000)	28,000	(58,000)
Total Other Income (expense)	31,000	(31,000)	28,000	1,004,000
Loss before Taxes	(1,070,000)	(884,000)	(1,000,000)	(1,608,000)
Income tax expense	14,000	10,000	22,000	23,000
Net Loss	$ (1,084,000)	$ (894,000)	$ (1,022,000)	$ (1,631,000)
Net loss per share:
Basic	$ (0.61)	$ (0.51)	$ (0.57)	$ (0.93)
Diluted	$ (0.61)	$ (0.51)	$ (0.57)	$ (0.93)
Shares used in calculation of net loss per share:
Basic	1,788,000	1,755,000	1,787,000	1,753,000
Diluted	1,788,000	1,755,000	1,787,000	1,753,000

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, 2020		1,748,000
Balance, amount at Dec. 31, 2020	6,668,000	$ 17,000	16,238,000	(9,587,000)
Net loss	(1,631,000)
Balance, shares at Jun. 30, 2021		1,765,000
Balance, amount at Jun. 30, 2021	5,196,000	$ 18,000	16,396,000	(11,218,000)
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)
Value of stock-based compensation	86,000	0	86,000	0
Net loss	(894,000)	$ 0	0	(894,000)
Repurchase of common stock upon vesting of restricted stock units, shares		11,000
Repurchase of common stock upon vesting of restricted stock units, amount	(9,000)	$ 0	(9,000)	0
Balance, shares at Jun. 30, 2021		1,765,000
Balance, amount at Jun. 30, 2021	5,196,000	$ 18,000	16,396,000	(11,218,000)
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)
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)
Net loss	(1,022,000)
Balance, shares at Jun. 30, 2022		1,793,000
Balance, amount at Jun. 30, 2022	2,269,000	$ 18,000	16,394,000	(14,143,000)
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)
Issuance of common stock, net, shares		1,000
Issuance of common stock, net, amount	11,000	$ 0	11,000	0
Value of stock-based compensation	29,000	0	29,000	0
Net loss	(1,084,000)	$ 0	0	(1,084,000)
Issuance of common stock upon vesting of restricted stock units, shares		6,000
Issuance of common stock upon vesting of restricted stock units, amount	0	$ 0	0	0
Balance, shares at Jun. 30, 2022		1,793,000
Balance, amount at Jun. 30, 2022	$ 2,269,000	$ 18,000	$ 16,394,000	$ (14,143,000)

CONDENSED STATEMENTS OF CASH FL

CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Operating Activities:
Net loss	$ (1,022,000)	$ (1,631,000)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	31,000	32,000
Gain on sale of property and equipment	0	(7,000)
Changes in allowance for doubtful accounts	27,000	53,000
Stock-based compensation expense	59,000	142,000
Gain on forgiveness of debt and accrued interest	0	(1,062,000)
Changes in operating assets and liabilities:
Accounts receivable	1,096,000	967,000
Inventories	(6,000)	(6,000)
Income tax receivable	(2,000)	(1,000)
Prepaid expenses and other	941,000	536,000
Accounts payable	(1,208,000)	(647,000)
Accrued liabilities	(1,170,000)	361,000
Income tax payable	19,000	17,000
Deferred revenue	(240,000)	95,000
Net cash used in operating activities	(1,475,000)	(1,151,000)
Investing Activities:
Purchases of property and equipment	(28,000)	(32,000)
Proceeds from sale of property and equipment	0	16,000
Net cash used in investing activities	(28,000)	(16,000)
Financing Activities:
Proceeds from issuance of common stock, net	39,000	26,000
Cash dividends paid ($0.70 per share)	0	(14,000)
Repuchase of common stock upon vesting of restricted stock awards	0	(9,000)
Net cash provided by financing activities	39,000	3,000
Decrease in cash and cash equivalents and restricted cash	(1,464,000)	(1,164,000)
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	2,387,000	5,964,000
Supplemental disclosures for cash flow information:
Cash paid during the period for income taxes	5,000	7,000
Non-cash financing activity:
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
Purchase of property and equipment included in accounts payable	$ 0	$ 15,000

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2022
Summary of Significant Accounting Policies
Summary Of Significant Accounting Policies	1. Summary of Significant Accounting Policies. Description of Business . Basis of Presentation . Cash and Cash Equivalents and Restricted Cash. June 30, December 31, 2022 2021 Cash and cash equivalents $ 2,302,000 $ 3,766,000 Restricted cash 85,000 85,000 Total cash, cash equivalents and restricted cash $ 2,387,000 $ 3,851,000 Inventories . Property and Equipment . June 30, 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 756,000 753,000 Leasehold improvements 19,000 19,000 Construction in-progress 16,000 4,000 913,000 898,000 Accumulated depreciation and amortization (816,000 ) (785,000 ) Net Property and Equipment $ 97,000 $ 113,000 Depreciation expense was approximately $15,000 and $31,000 in the three and six months ended June 30, 2022, respectively, and was $11,000 and $32,000 in the three and six months ended June 30, 2021, respectively. Stock-Based Compensation During the six-month periods ended June 30, 2022 and 2021 no equity awards were issued by the Company, except those awarded to non-employee members of the Board of Directors in June 2021. In June 2021, non-employee members of the Board of Directors received restricted stock grants totaling 5,514 shares pursuant to the 2018 Equity Incentive 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 vested on June 1, 2022. Total stock-based compensation expense recorded for the three and six months ended June 30, 2022 was $29,000 and $59,000, respectively, and for the three and six months ended June 30, 2021 was $86,000 and $142,000, respectively. Net Loss per Share . Due to the net loss incurred during the three and six months ended June 30, 2022 and 2021 all outstanding stock awards were anti-dilutive for those periods. As of June 30, 2022, the Company had 14,086 options and 3,396 restricted units outstanding. As of June 30, 2021, the Company had 21,741 options and 37,879 restricted units outstanding. Weighted average common shares outstanding for the three and six months ended June 30, 2022 and 2021 were as follows: Three Months Ended Six Months Ended June 30 June 30 2022 2021 2022 2021 Denominator for basic net loss per share - weighted average shares 1,788,000 1,755,000 1,787,000 1,753,000 Effect of dilutive securities: Stock options and restricted stock units — — — — Denominator for diluted net loss per share - weighted average shares 1,788,000 1,755,000 1,787,000 1,753,000

Revenue Recognition

Revenue Recognition	6 Months Ended
	Jun. 30, 2022
Revenue Recognition
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 transferred to a customer are accounted for as a fulfillment cost and are included in cost of services. 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 June 30 Six months ended June 30 2022 2021 2022 2021 Services Revenues Services Revenues Services Revenues Services Revenues Timing of revenue recognition: Services transferred over time $ 502,000 $ 1,861,000 $ 958,000 $ 3,884,000 Services transferred at a point in time 2,752,000 4,235,000 8,444,000 7,598,000 Total $ 3,254,000 $ 6,096,000 $ 9,402,000 $ 11,482,000 Contract Costs Sales commissions that are paid to internal or external sales representatives are eligible for capitalization as they are incremental costs that would not have been incurred without entering into a specific sales arrangement and are recoverable through the expected margin on the transaction. The Company is applying the practical expedient in Accounting Standards Codification 340-40-25-4 that allows the incremental costs of obtaining a contract to be recorded as an expense when incurred when the amortization period of the asset that would have otherwise been recognized is one year or less. These costs are included in selling expenses. Deferred Revenue 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 238,000 Balance at June 30, 2022 $ 602,000 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 $56,000 and $57,000 related to performance obligations that are unsatisfied (or partially unsatisfied) as of June 30, 2022 will be recognized during the remainder of fiscal 2022 and 2023, respectively.

Leases

Leases	6 Months Ended
	Jun. 30, 2022
Leases
Leases	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 three and six month periods ended June 30, 2022 and 2021: Three months ended June 30, 2022 Six months ended June 30, 2022 Corporate Headquarters Warehouse Operating Leases Corporate Headquarters Additional Office Space Warehouse Operating Leases Operating lease cost $ 16,000 $ 5,000 $ 21,000 $ 33,000 $ - $ 9,000 $ 42,000 Variable lease cost 10,000 3,000 13,000 20,000 - 6,000 26,000 Total $ 26,000 $ 8,000 $ 34,000 $ 53,000 $ - $ 15,000 $ 68,000 Three months ended June 30, 2021 Six months ended June 30, 2021 Additional Office Space Warehouse Operating Leases Prior Corporate Headquarters Additional Office Space Warehouse Operating Leases Operating lease cost $ - $ 4,000 $ 4,000 $ 38,000 $ - $ 4,000 $ 42,000 Variable lease cost - 5,000 5,000 24,000 - 5,000 29,000 Short-term lease cost 10,000 - 10,000 - 21,000 - 21,000 Total $ 10,000 $ 9,000 $ 19,000 $ 62,000 $ 21,000 $ 9,000 $ 92,000 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 June 30, 2022: Maturity of Lease Liabilities Leases 2022 $ 42,000 2023 72,000 2024 40,000 Total lease payments 154,000 Less: Interest (7,000 ) Present value of lease liabilities $ 147,000 The remaining lease terms as of June 30, 2022 for the Company’s corporate headquarters and its warehouse leases were 2.0 years and 0.8 years, respectively. The cash outflows for operating leases were $20,000 and $41,000 for the three and six months ended June 30, 2022, respectively, and were $4,000 and $72,000 for the three and six months ended June 30, 2021, respectively.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2022
Income Taxes
Income Taxes	4. Income Taxes. The Company reassesses its effective rate each reporting period and adjusts the annual effective rate if deemed necessary, based on projected annual taxable income (loss). 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 June 30, 2022, and December 31, 2021, the Company had unrecognized tax benefits totaling $730,000 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 $730,000. Due to the current statute of limitations regarding the unrecognized tax benefits, the Company expects to record a decrease of approximately $695,000 in unrecognized tax benefits related to state exposures in the third quarter of 2022, which will reduce accrued income taxes and increase income tax benefit.

Concentrations

Concentrations	6 Months Ended
	Jun. 30, 2022
Concentrations
Concentrations	5. Concentrations.

Legal Proceedings

Legal Proceedings	6 Months Ended
	Jun. 30, 2022
Legal Proceedings
Legal Proceedings	6. Legal Proceedings. Subsequent to the end of the quarter, on July 1, 2022, the Company entered into a $20 million settlement agreement with News America. The agreement memorializes the amicable settlement of the Company’s outstanding lawsuit against News America. The agreement is expected to result in net proceeds before income tax of between $11,500,000 and $12,000,000 for the Company, which will be recorded as pretax income in the quarter ending September 30, 2022. The Company is subject to various legal matters in the normal course of business.

Loan

Loan	6 Months Ended
	Jun. 30, 2022
Loan
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.

Subsequent Event

Subsequent Event	6 Months Ended
	Jun. 30, 2022
Subsequent Event
Subsequent Event	8. Subsequent Event.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 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. June 30, December 31, 2022 2021 Cash and cash equivalents $ 2,302,000 $ 3,766,000 Restricted cash 85,000 85,000 Total cash, cash equivalents and restricted cash $ 2,387,000 $ 3,851,000
Inventories	Inventories .
Property And Equipment	Property and Equipment . June 30, 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 756,000 753,000 Leasehold improvements 19,000 19,000 Construction in-progress 16,000 4,000 913,000 898,000 Accumulated depreciation and amortization (816,000 ) (785,000 ) Net Property and Equipment $ 97,000 $ 113,000 Depreciation expense was approximately $15,000 and $31,000 in the three and six months ended June 30, 2022, respectively, and was $11,000 and $32,000 in the three and six months ended June 30, 2021, respectively.
Stock-based Compensation	Stock-Based Compensation During the six-month periods ended June 30, 2022 and 2021 no equity awards were issued by the Company, except those awarded to non-employee members of the Board of Directors in June 2021. In June 2021, non-employee members of the Board of Directors received restricted stock grants totaling 5,514 shares pursuant to the 2018 Equity Incentive 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 vested on June 1, 2022. Total stock-based compensation expense recorded for the three and six months ended June 30, 2022 was $29,000 and $59,000, respectively, and for the three and six months ended June 30, 2021 was $86,000 and $142,000, respectively.
Net Loss Per Share	Net Loss per Share . Due to the net loss incurred during the three and six months ended June 30, 2022 and 2021 all outstanding stock awards were anti-dilutive for those periods. As of June 30, 2022, the Company had 14,086 options and 3,396 restricted units outstanding. As of June 30, 2021, the Company had 21,741 options and 37,879 restricted units outstanding. Weighted average common shares outstanding for the three and six months ended June 30, 2022 and 2021 were as follows: Three Months Ended Six Months Ended June 30 June 30 2022 2021 2022 2021 Denominator for basic net loss per share - weighted average shares 1,788,000 1,755,000 1,787,000 1,753,000 Effect of dilutive securities: Stock options and restricted stock units — — — — Denominator for diluted net loss per share - weighted average shares 1,788,000 1,755,000 1,787,000 1,753,000

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2022
Summary of Significant Accounting Policies
Schdule of Cash And Cash Equivalents And Restricted Cash	June 30, December 31, 2022 2021 Cash and cash equivalents $ 2,302,000 $ 3,766,000 Restricted cash 85,000 85,000 Total cash, cash equivalents and restricted cash $ 2,387,000 $ 3,851,000
Schedule Of Property And Equipment	June 30, 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 756,000 753,000 Leasehold improvements 19,000 19,000 Construction in-progress 16,000 4,000 913,000 898,000 Accumulated depreciation and amortization (816,000 ) (785,000 ) Net Property and Equipment $ 97,000 $ 113,000
Schdule of Weighted Average Common Shares Outstanding	Three Months Ended Six Months Ended June 30 June 30 2022 2021 2022 2021 Denominator for basic net loss per share - weighted average shares 1,788,000 1,755,000 1,787,000 1,753,000 Effect of dilutive securities: Stock options and restricted stock units — — — — Denominator for diluted net loss per share - weighted average shares 1,788,000 1,755,000 1,787,000 1,753,000

Revenue Recognition (Tables)

Revenue Recognition (Tables)	6 Months Ended
	Jun. 30, 2022
Revenue Recognition
Disaggregation Of Revenue	Three months ended June 30 Six months ended June 30 2022 2021 2022 2021 Services Revenues Services Revenues Services Revenues Services Revenues Timing of revenue recognition: Services transferred over time $ 502,000 $ 1,861,000 $ 958,000 $ 3,884,000 Services transferred at a point in time 2,752,000 4,235,000 8,444,000 7,598,000 Total $ 3,254,000 $ 6,096,000 $ 9,402,000 $ 11,482,000
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 238,000 Balance at June 30, 2022 $ 602,000

Lease (Tables)

Lease (Tables)	6 Months Ended
	Jun. 30, 2022
Leases
Cost Components Of Operating Leases	Three months ended June 30, 2022 Six months ended June 30, 2022 Corporate Headquarters Warehouse Operating Leases Corporate Headquarters Additional Office Space Warehouse Operating Leases Operating lease cost $ 16,000 $ 5,000 $ 21,000 $ 33,000 $ - $ 9,000 $ 42,000 Variable lease cost 10,000 3,000 13,000 20,000 - 6,000 26,000 Total $ 26,000 $ 8,000 $ 34,000 $ 53,000 $ - $ 15,000 $ 68,000 Three months ended June 30, 2021 Six months ended June 30, 2021 Additional Office Space Warehouse Operating Leases Prior Corporate Headquarters Additional Office Space Warehouse Operating Leases Operating lease cost $ - $ 4,000 $ 4,000 $ 38,000 $ - $ 4,000 $ 42,000 Variable lease cost - 5,000 5,000 24,000 - 5,000 29,000 Short-term lease cost 10,000 - 10,000 - 21,000 - 21,000 Total $ 10,000 $ 9,000 $ 19,000 $ 62,000 $ 21,000 $ 9,000 $ 92,000
Schdule of Maturity Of Lease Liabilities	Maturity of Lease Liabilities Leases 2022 $ 42,000 2023 72,000 2024 40,000 Total lease payments 154,000 Less: Interest (7,000 ) Present value of lease liabilities $ 147,000

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details) - USD ($)	Jun. 30, 2022	Dec. 31, 2021
Summary of Significant Accounting Policies
Cash And Cash Equivalents	$ 2,302,000	$ 3,766,000
Restricted Cash	85,000	85,000
Total Cash, Cash Equivalents And Retricted Cash	$ 2,387,000	$ 3,851,000

Summary of Significant Accoun_5

Summary of Significant Accounting Policies (Details 1) - USD ($)	Jun. 30, 2022	Dec. 31, 2021
Gross Property And Equipment	$ 913,000	$ 898,000
Accumulated Depreciation And Amortization	(816,000)	(785,000)
Net Property And Equipment	97,000	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	756,000	753,000
Leasehold improvements
Gross Property And Equipment	19,000	19,000
Construction in-Progress
Gross Property And Equipment	$ 16,000	$ 4,000

Summary of Significant Accoun_6

Summary of Significant Accounting Policies (Details 2) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Summary of Significant Accounting Policies
Denominator For Basic Net Loss Per Share - Weighted Average Shares	1,788,000	1,755,000	1,787,000	1,753,000
Effect Of Dilutive Securities:
Denominator For Diluted Net Loss Per Share - Weighted Average Shares	1,788,000	1,755,000	1,787,000	1,753,000
Stock Options, Restricted Stock And Restricted Stock	0	0	0	0

Summary of Significant Accoun_7

Summary of Significant Accounting Policies (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Summary of Significant Accounting Policies
Depreciation Expense	$ 15,000	$ 11,000	$ 31,000	$ 32,000
Stock options	14,086	21,741	14,086	21,741
Restricted stock units outstanding	3,396	37,879	3,396	37,879
Restricted stock received by non employee members,Numbers				5,514
Restricted stock received by non employee members,per share value				$ 8.16
Restricted stock received by non employee members,Total grant value				$ 45,000
Stock-based Compensation Expense	$ 29,000	$ 86,000	$ 59,000	$ 142,000

Revenue Recognition (Details)

Revenue Recognition (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Total Net Sales	$ 3,254,000	$ 6,096,000	$ 9,402,000	$ 11,482,000
Services Revenues
Total Net Sales	3,254,000	6,096,000	9,402,000	11,482,000
Services Transferred Over Time
Total Net Sales	502,000	1,861,000	958,000	3,884,000
Services Transferred At a Point in Time
Total Net Sales	$ 2,752,000	$ 4,235,000	$ 8,444,000	$ 7,598,000

Revenue Recognition (Details 1)

Revenue Recognition (Details 1)	6 Months Ended
	Jun. 30, 2022 USD ($)
Revenue Recognition
Deferred Revenue, ending	$ 602,000
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	$ 238,000

Revenue Recognition (Details Na

Revenue Recognition (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Revenue	$ 3,254,000	$ 6,096,000	$ 9,402,000	$ 11,482,000
2022
Revenue			56,000
2023
Revenue			$ 57,000

Leases (Details)

Leases (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Warehouse
Operating Lease Cost	$ 5,000	$ 4,000	$ 9,000	$ 4,000
Variable Lease Cost	3,000	5,000	6,000	5,000
Short-term Lease Cost		0		0
Total	8,000	9,000	15,000	9,000
Corporate Headquarters
Operating Lease Cost	16,000		33,000
Variable Lease Cost	10,000		20,000
Total	26,000		53,000
Additional Office Space
Operating Lease Cost		0	0	0
Variable Lease Cost		0	0	0
Short-term Lease Cost		10,000		21,000
Total		10,000	0	21,000
Prior Corporate Headquarters
Operating Lease Cost				38,000
Variable Lease Cost				24,000
Short-term Lease Cost				0
Total				62,000
OperatingLeases
Operating Lease Cost	21,000	4,000	42,000	42,000
Variable Lease Cost	13,000	5,000	26,000	29,000
Short-term Lease Cost		10,000		21,000
Total	$ 34,000	$ 19,000	$ 68,000	$ 92,000

Leases (Details 1)

Leases (Details 1)	Jun. 30, 2022 USD ($)
Leases
2022	$ 42,000
2023	72,000
2024	40,000
Total Lease Payments	154,000
Less: Interest	(7,000)
Present Value Of Lease Liabilities	$ 147,000

Leases (Details Narrative)

Leases (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Restricted Cash	$ 85,000		$ 85,000
Incremental Borrowing Rate	4.80%		4.80%
Cash Outflow For Operating Leases	$ 20,000	$ 4,000	$ 41,000	$ 72,000
Warehouse
Remaining Lease Term			9 months 18 days
Corporate Headquarters
Remaining Lease Term			2 years

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Income Taxes
Income Tax Benefit (expense)	$ 14,000	$ 10,000	$ 22,000	$ 23,000
Income Tax Rate, Percentage	(1.30%)	(1.10%)	(2.20%)	(1.40%)
Decrease Of Unrecognized Tax Benefits			$ 695,000
Unrecognized Tax Benefits	$ 730,000		730,000		$ 711,000
Unrecognized Tax Benefits Effective Income Tax Rates Of Future Periods			$ 730,000

Concentrations (Details Narrati

Concentrations (Details Narrative)	6 Months Ended		12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Sales Revenue, Net | Customer One
Customer's Percentage Of Net Sales	22%	15%
Sales Revenue, Net | Customer Two
Customer's Percentage Of Net Sales	15%	12%
Sales Revenue, Net | Customer Three
Customer's Percentage Of Net Sales	10%	11%
Accounts Receivable | Customer One
Customer's Percentage Of Net Sales	32%		25%
Accounts Receivable | Customer Two
Customer's Percentage Of Net Sales	10%		19%

Legal Proceedings (Details Narr

Legal Proceedings (Details Narrative) - Settlement agreement - USD ($)	1 Months Ended
	Sep. 30, 2022	Jul. 01, 2022
Agreement amount		$ 20,000,000
Net proceeds before income tax	$ 11,500,000
Net proceeds pretax income tax	$ 12,000,000

Loan (Details Narrative)

Loan (Details Narrative)	1 Months Ended	12 Months Ended
	Apr. 30, 2020 USD ($) integer	Dec. 31, 2021 USD ($)
Loan (Details Narrative)
Debt Face Amount		$ 1,054,000
Rate Of Interest Per Annum	1%
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