Lendway (LDWY) 10-Q 14 Aug 23 2023 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jun. 30, 2023	Aug. 08, 2023
Cover [Abstract]
Entity Registrant Name	LENDWAY, INC.
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, 2023
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2023
Entity Common Stock Shares Outstanding		1,797,659
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 City Or Town	Minneapolis
Entity Address State Or Province	MN
Trading Symbol	LDWY
Entity Address Postal Zip Code	55401
City Area Code	763
Local Phone Number	392-6200
Security 12b Title	Common Stock, $0.01 par value
Security Exchange Name	NASDAQ
Entity Address Address Line 1	212 Third Avenue N
Entity Address Address Line 2	Suite 356

CONDENSED BALANCE SHEETS

CONDENSED BALANCE SHEETS - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Current Assets:
Cash and cash equivalents	$ 11,419,000	$ 14,439,000
Restricted cash	85,000	85,000
Accounts receivable, net	7,583,000	5,557,000
Inventories	28,000	29,000
Income tax receivable	90,000	28,000
Prepaid production costs	143,000	535,000
Other prepaid expense	208,000	80,000
Total Current Assets	19,556,000	20,753,000
Other Assets:
Property and equipment, net	71,000	71,000
Operating lease right-of-use assets	123,000	144,000
Other, net	10,000	0
Total Assets	19,760,000	20,968,000
Current Liabilities:
Accounts payable	1,324,000	2,653,000
Accrued liabilities:
Compensation	912,000	962,000
Sales tax	397,000	717,000
Other	722,000	611,000
Current portion of operating lease liabilities	16,000	4,000
Deferred revenue	1,154,000	2,427,000
Total Current Liabilities	4,525,000	7,374,000
Long-Term Liabilities:
Accrued income taxes	55,000	53,000
Operating lease liabilities	123,000	140,000
Total Long-Term Liabilities	178,000	193,000
Commitments and Contingencies	0	0
Shareholders' Equity:
Common stock, par value $.01: Authorized shares - 5,714,000 Issued and outstanding shares - 1,798,000 at June 30, 2023 and 1,797,000 at December 31, 2022, respectively	18,000	18,000
Additional paid-in capital	16,502,000	16,458,000
Accumulated deficit	(1,463,000)	(3,075,000)
Total Shareholders' Equity	15,057,000	13,401,000
Total Liabilities and Shareholders' Equity	$ 19,760,000	$ 20,968,000

CONDENSED BALANCE SHEETS (Paren

CONDENSED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2023	Dec. 31, 2022
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	1,798,000	1,797,000
Common Stock, Shares Outstanding	1,798,000	1,797,000

CONDENSED STATEMENTS OF OPERATI

CONDENSED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
CONDENSED STATEMENTS OF OPERATIONS (Unaudited)
Net services revenues	$ 6,211,000	$ 3,254,000	$ 19,042,000	$ 9,402,000
Cost of services	4,588,000	2,838,000	14,499,000	7,706,000
Gross Profit	1,623,000	416,000	4,543,000	1,696,000
Operating Expenses:
Selling	361,000	290,000	725,000	632,000
Marketing	300,000	279,000	596,000	538,000
General and administrative	1,129,000	948,000	1,850,000	1,554,000
Total Operating Expenses	1,790,000	1,517,000	3,171,000	2,724,000
Operating (Loss) Income	(167,000)	(1,101,000)	1,372,000	(1,028,000)
Interest income	135,000	31,000	247,000	28,000
(Loss) Income before Taxes	(32,000)	(1,070,000)	1,619,000	(1,000,000)
Income tax expense	4,000	14,000	7,000	22,000
Net (Loss) Income	$ (36,000)	$ (1,084,000)	$ 1,612,000	$ (1,022,000)
Net (loss) income per share:
Basic	$ (0.02)	$ (0.61)	$ 0.90	$ (0.57)
Diluted	$ (0.02)	$ (0.61)	$ 0.89	$ (0.57)
Shares used in calculation of net (loss) income per share:
Basic	1,798,000	1,788,000	1,798,000	1,787,000
Diluted	1,798,000	1,788,000	1,802,000	1,787,000

CONDENSED STATEMENTS OF SHAREHO

CONDENSED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) - USD ($)	Total	Common Stock	Additional Paid-In Capital	Accumulated Deficit
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 income	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 income	(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 income	(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)
Balance, shares at Dec. 31, 2022		1,797,000
Balance, amount at Dec. 31, 2022	13,401,000	$ 18,000	16,458,000	(3,075,000)
Issuance of common stock, net, shares		1,000
Issuance of common stock, net, amount	8,000	$ 0	8,000	0
Value of stock-based compensation	22,000	0	22,000	0
Net income	1,648,000	$ 0	0	1,648,000
Balance, shares at Mar. 31, 2023		1,798,000
Balance, amount at Mar. 31, 2023	15,079,000	$ 18,000	16,488,000	(1,427,000)
Balance, shares at Dec. 31, 2022		1,797,000
Balance, amount at Dec. 31, 2022	13,401,000	$ 18,000	16,458,000	(3,075,000)
Net income	1,612,000
Balance, shares at Jun. 30, 2023		1,798,000
Balance, amount at Jun. 30, 2023	15,057,000	$ 18,000	16,502,000	(1,463,000)
Balance, shares at Mar. 31, 2023		1,798,000
Balance, amount at Mar. 31, 2023	15,079,000	$ 18,000	16,488,000	(1,427,000)
Value of stock-based compensation	14,000	0	14,000	0
Net income	(36,000)	$ 0	0	(36,000)
Balance, shares at Jun. 30, 2023		1,798,000
Balance, amount at Jun. 30, 2023	$ 15,057,000	$ 18,000	$ 16,502,000	$ (1,463,000)

CONDENSED STATEMENTS OF CASH FL

CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Operating Activities:
Net income (loss)	$ 1,612,000	$ (1,022,000)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation	26,000	31,000
Changes in allowance for doubtful accounts	11,000	27,000
Stock-based compensation expense	36,000	59,000
Changes in operating assets and liabilities:
Accounts receivable	(2,037,000)	1,096,000
Inventories	1,000	(6,000)
Income tax receivable	(62,000)	(2,000)
Prepaid expenses and other	254,000	941,000
Accounts payable	(1,336,000)	(1,208,000)
Accrued liabilities	(243,000)	(1,170,000)
Accrued income taxes	2,000	19,000
Deferred revenue	(1,273,000)	(240,000)
Net cash used in operating activities	(3,009,000)	(1,475,000)
Investing Activities:
Purchases of property and equipment	(19,000)	(28,000)
Net cash used in investing activities	(19,000)	(28,000)
Financing Activities:
Proceeds from issuance of common stock, net	8,000	39,000
Net cash provided by financing activities	8,000	39,000
Decrease in cash and cash equivalents and restricted cash	(3,020,000)	(1,464,000)
Cash and cash equivalents and restricted cash at beginning of period	14,524,000	3,851,000
Cash and cash equivalents and restricted cash at end of period	11,504,000	2,387,000
Cash paid during the period for income taxes	66,000	5,000
Non-cash financing activity:
Purchase of property and equipment included in accounts payable	$ 7,000	$ 0

Description of Business and Bas

Description of Business and Basis of Presentation	6 Months Ended
	Jun. 30, 2023
Description of Business and Basis of Presentation
Description of Business and Basis of Presentation	1. Description of Business and Basis of Presentation. Description of Business . As described in Note 2, on August 3, 2023, the Company completed the sale of certain assets and certain liabilities relating to the Company’s business of providing in-store advertising solutions to brands, retailers, shopper marketing agencies and brokerages (the “Legacy Business”) for a price of $3.5 million, subject to escrows and a post-closing adjustment. Basis of Presentation . The condensed consolidated financial statements include the accounts of the Company, its subsidiary, Farmland Credit, Inc., a Minnesota corporation (“FCI”), and FCI’s subsidiaries, Farmland Credit FR, LLC and Farmland Credit AV, LLC. The operations of the Legacy Business will be presented as discontinued operations beginning with the Quarterly Report on Form 10-Q for the three months ended September 30, 2023, the period in which the sale of the Legacy Business met the criteria as a discontinued operation.

Asset Sale

Asset Sale	6 Months Ended
	Jun. 30, 2023
Asset Sale
Asset Sale	2. Asset Sale. On August 3, 2023, the Company completed the sale of certain assets and certain liabilities relating to the Company’s Legacy Business for a price of $3.5 million to TIMIBO LLC, an affiliate of Park Printing, Inc. (the “Buyer”), under an Asset Purchase Agreement (the “Purchase Agreement”). The Company retained accounts receivable, as well as cash, cash equivalents and marketable securities. The purchase price is subject to a post-closing adjustment depending on the net balance of (i) cash received by the Company for programs that remained unexecuted as of August 3, 2023, minus (ii) the payments made by the Company to vendors for unexecuted programs. The Company received significant cash payments between July 1 and August 3, 2023 for unexecuted programs, which the Company will retain, but which will reduce the purchase price. Under the Purchase Agreement, $200,000 was escrowed for a twelve-month period for any future claims, as defined in the Purchase Agreement, by the Buyer against the Company. The Company incurred approximately $350,000 of transaction-related costs that had not previously been expensed. The Company also incurred transaction-related severance and other separation benefits in connection with the termination of certain officers and employees of the Company of approximately $1,537,000, as well as retention award payouts totaling $143,000 and employee bonuses totaling $164,000, each of which will be recorded as expense in the three months ended September 30, 2023. The operations of the Legacy Business will be presented as discontinued operations beginning with the Quarterly Report on Form 10-Q for the three months ended September 30, 2023. The Company is presenting unaudited pro forma condensed consolidated information on a discontinued operations basis to illustrate the significant impact of the sale of the Legacy Business on the Company’s balance sheet and statement of operations. The Company is presenting the pro forma information for the three months ended June 30, 2023, as that is the period in which the non-bank lending business began. No impact from the sale proceeds and related costs are included in the pro forma information. The unaudited pro forma condensed consolidated balance sheet illustrates the impact at June 30, 2023 had discontinued operations presentation been used (unaudited). The amounts held for sale represent the assets that will be purchased by the Buyer and liabilities which will be assumed by the Buyer: Historical Discontinued Operations Adjustments Pro Forma Continued Operations ASSETS Current Assets: Cash and cash equivalents $ 11,419,000 $ - $ 11,419,000 Restricted cash 85,000 - 85,000 Accounts receivable, net 7,583,000 - 7,583,000 Inventories 28,000 (28,000 ) - Income tax receivable 90,000 - 90,000 Prepaid production costs 143,000 (143,000 ) - Other prepaid expense 208,000 (19,000 ) 189,000 Current assets held for sale - 190,000 190,000 Total Current Assets 19,556,000 - 19,556,000 Other Assets: Property and equipment, net 71,000 (71,000 ) - Operating lease right-of-use assets 123,000 (123,000 ) - Other, net 10,000 - 10,000 Non-current assets held for sale - 194,000 194,000 Total Assets $ 19,760,000 $ - $ 19,760,000 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts payable 1,324,000 (72,000 ) 1,252,000 Accrued liabilities 2,031,000 - 2,031,000 Current portion of operating lease liabilities 16,000 (16,000 ) - Deferred revenue 1,154,000 (1,154,000 ) - Current liabilities held for sale - 1,242,000 1,242,000 Total Current Liabilities 4,525,000 - 4,525,000 Long-Term Liabilities: Accrued income taxes 55,000 - 55,000 Operating lease liabilities 123,000 (123,000 ) - Non-current liabilities held for sale - 123,000 123,000 Total Long-Term Liabilities 178,000 - 178,000 Commitments and Contingencies - - - Shareholders' Equity: Total Shareholders' Equity 15,057,000 - 15,057,000 Total Liabilities and Shareholders' Equity $ 19,760,000 $ - $ 19,760,000 The unaudited pro forma condensed consolidated statement of operations for the three months ended June 30, 2023 illustrates the impact for that period had discontinued operations presentation been used (unaudited). The discontinued operations adjustments represent amounts that relate to the Legacy Business, with no allocation of general overhead to the Legacy Business: Historical Discontinued Operations Adjustments Pro Forma Continuing Operations Net services revenues $ 6,211,000 $ (6,211,000 ) $ - Cost of services 4,588,000 (4,588,000 ) - Gross Profit 1,623,000 (1,623,000 ) - Operating Expenses: Selling 361,000 (361,000 ) - Marketing 300,000 (300,000 ) - General and administrative 1,129,000 (572,000 ) 557,000 Total Operating Expenses 1,790,000 (1,233,000 ) 557,000 Operating Income (Loss) (167,000 ) (390,000 ) (557,000 ) Interest income 135,000 - 135,000 Income (Loss) from Operations Before Taxes (32,000 ) (390,000 ) (422,000 ) Income tax expense 4,000 - 4,000 Net Income (Loss) from Continuing Operations $ (426,000 ) Net (Income) Loss from Discontinued Operations $ (390,000 ) Net Income (Loss) $ (36,000 ) Net income (loss) per share, basic and diluted: Continuing operations $ (0.24 ) Discontinued operations $ 0.22 Total $ (0.02 ) Weighted average shares outstanding: Basic and diluted 1,798,000 1,798,000 1,798,000

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2023
Summary of Significant Accounting Policies
Summary Of Significant Accounting Policies	3. Summary of Significant Accounting Policies. Cash and Cash Equivalents and Restricted Cash. June 30, December 31, 2023 2022 Cash and cash equivalents $ 11,419,000 $ 14,439,000 Restricted cash 85,000 85,000 Total cash, cash equivalents and restricted cash $ 11,504,000 $ 14,524,000 Inventories . Property and Equipment . June 30, December 31, 2023 2022 Property and Equipment: Production tooling, machinery and equipment $ - $ 27,000 Office furniture and fixtures 85,000 95,000 Computer equipment and software 531,000 771,000 Leasehold improvements 19,000 19,000 Construction in-progress 12,000 3,000 647,000 915,000 Accumulated depreciation and amortization (576,000 ) (844,000 ) Net Property and Equipment $ 71,000 $ 71,000 Depreciation expense was approximately $12,000 and $26,000 in the three and six months ended June 30, 2023, respectively, and was $15,000 and $31,000 in the three and six months ended June 30, 2022, respectively. Stock-Based Compensation During the six-month periods ended June 30, 2023 and 2022 no equity awards were issued by the Company. 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. The Company estimated the fair value of stock-based awards granted during the three and six months ended June 30, 2023, under the Company’s employee stock purchase plan using the following weighted average assumptions: expected life of 1.0 year, expected volatility of 95.2%, dividend yield of 0% and risk-free interest rate of 4.7%. Total stock-based compensation expense recorded for the three and six months ended June 30, 2023 was $14,000 and $36,000, respectively, and for the three and six months ended June 30, 2022 was $29,000 and $59,000, respectively. Net (Loss) Income per Share . Due to the net loss incurred during the three months ended June 30, 2023 all outstanding stock awards were anti-dilutive for that periods. For the six months ended June 30, 2023 options to purchase approximately 14,000 shares of common stock with a weighted average exercise price of $11.74 were outstanding and were not included in the computation of common stock equivalents for the six months ended June 30, 2023 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 and six months ended June 30, 2022 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. Weighted average common shares outstanding for the three and six months ended June 30, 2023 and 2022 were as follows: Three Months Ended Six Months Ended June 30 June 30 2023 2022 2023 2022 Denominator for basic net loss per share - weighted average shares 1,798,000 1,788,000 1,798,000 1,787,000 Effect of dilutive securities: Stock options and restricted stock units — — 4,000 — Denominator for diluted net loss per share - weighted average shares 1,798,000 1,788,000 1,802,000 1,787,000

Revenue Recognition

Revenue Recognition	6 Months Ended
	Jun. 30, 2023
Revenue Recognition
Revenue Recognition	4. 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: Display, On-Pack, and Non-POPS Signage Solutions POPS Signage Solution Services. Each of the individual activities under the Legacy Business’ 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 had an enforceable right to payment for services performed through the closing of the sale of the Legacy Business. As a result, the Company has recognized the transaction price for service performance obligations as revenue over time. Given the nature of the Legacy Business’ 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 2023 2022 2023 2022 Services Revenues Services Revenues Services Revenues Services Revenues Timing of revenue recognition: Services transferred over time $ 470,000 $ 502,000 $ 733,000 $ 958,000 Services transferred at a point in time 5,741,000 2,752,000 18,309,000 8,444,000 Total $ 6,211,000 $ 3,254,000 $ 19,042,000 $ 9,402,000 Contract Costs Sales commissions that were 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, 2022 $ 2,427,000 Reclassification of beginning deferred revenue to revenue, as a result of performance obligations satisfied (2,066,000 ) Cash received in advance and not recognized as revenue 793,000 Balance at June 30, 2023 $ 1,154,000 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. Contracts that had an expected duration of greater than one year were insignificant at June 30, 2023.

Leases

Leases	6 Months Ended
	Jun. 30, 2023
Leases
Leases	5. Leases. The cost components of the Company’s operating leases were as follows for the three and six month periods ended June 30, 2023 and 2022: Three months ended June 30, 2023 Six months ended June 30, 2023 Corporate Operating Corporate Operating Headquarters Other Leases Headquarters Other Leases Operating lease cost $ 10,000 $ - $ 10,000 $ 21,000 $ 4,000 $ 25,000 Variable lease cost 2,000 - 2,000 6,000 4,000 10,000 Short-term lease cost - 10,000 10,000 - 10,000 10,000 Total $ 12,000 $ 10,000 $ 22,000 $ 27,000 $ 18,000 $ 45,000 Three months ended June 30, 2022 Six months ended June 30, 2022 Corporate Operating Corporate Operating Headquarters Other Leases Headquarters Other 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 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 operating lease are as follows as of June 30, 2023: 2023 $ - 2024 52,000 2025 53,000 2026 55,000 Total lease payments 160,000 Less: Interest 21,000 Present value of lease liabilities $ 139,000 The remaining lease terms as of June 30, 2023 for the Company’s corporate headquarters lease was 3.5 years. The cash outflows for operating leases were $0 and $10,000 for the three and six months ended June 30, 2022, respectively, and were $20,000 and $41,000 for the three and six months ended June 30, 2022, respectively. Subsequent to June 30, 2023, the headquarters lease was assigned to the Buyer as a part of the sale of the Legacy Business.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2023
Income Taxes
Income Taxes	6. Income Taxes. Six months ended June 30, 2023 2022 Federal statutory rate 21.0 % 21.0 % Stock-based awards 2.2 (0.5 ) State taxes 3.8 3.4 Impact of uncertain tax positions 0.1 (1.9 ) Valuation allowance (24.2 ) (25.0 ) Other (2.5 ) 0.8 Effective federal income tax rate 0.4 % (2.2 )% 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, 2023, and December 31, 2022, the Company had unrecognized tax benefits totaling $55,000 and $53,000, 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 $55,000. At December 31, 2022, the Company had Federal net operating loss (NOL) to carry forward of approximately $2,900,000. As of June 30, 2023, the Company estimates remaining Federal NOL carryforwards to be approximately $1,300,000. Federal NOL utilization is limited to 80% of estimated taxable income. The estimated NOL carry forward will be adjusted at year end for actual results.

Concentrations

Concentrations	6 Months Ended
	Jun. 30, 2023
Concentrations
Concentrations	7. Concentrations. At June 30, 2023, one customer represented 70% of the Legacy Business’ total accounts receivable. At December 31, 2022, three customers represented 20%, 19% and 11%, respectively, of the Company’s total accounts receivable.

Legal Proceedings

Legal Proceedings	6 Months Ended
	Jun. 30, 2023
Legal Proceedings
Legal Proceedings	8. 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. 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 resulted in net proceeds before income tax of $12,000,000 for the Company, which was recorded as a gain on litigation settlement in operations during the three months ended September 30, 2022.

Subsequent Event

Subsequent Event	6 Months Ended
	Jun. 30, 2023
Subsequent Event
Subsequent Event	9. Subsequent Event. The Company has evaluated subsequent events through the filing of this Quarterly Report on Form 10-Q and determined that there have been no events that have occurred that would require adjustments to our disclosures in the condensed consolidated financial statements except for the events described in Note 2 related to the sale of the Legacy Business and the incurring of severance and other separation benefits.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2023
Summary of Significant Accounting Policies
Cash And Cash Equivalents And Restricted Cash	Cash and Cash Equivalents and Restricted Cash. June 30, December 31, 2023 2022 Cash and cash equivalents $ 11,419,000 $ 14,439,000 Restricted cash 85,000 85,000 Total cash, cash equivalents and restricted cash $ 11,504,000 $ 14,524,000
Inventories	Inventories .
Property And Equipment	Property and Equipment . June 30, December 31, 2023 2022 Property and Equipment: Production tooling, machinery and equipment $ - $ 27,000 Office furniture and fixtures 85,000 95,000 Computer equipment and software 531,000 771,000 Leasehold improvements 19,000 19,000 Construction in-progress 12,000 3,000 647,000 915,000 Accumulated depreciation and amortization (576,000 ) (844,000 ) Net Property and Equipment $ 71,000 $ 71,000 Depreciation expense was approximately $12,000 and $26,000 in the three and six months ended June 30, 2023, respectively, and was $15,000 and $31,000 in the three and six months ended June 30, 2022, respectively.
Stock-based Compensation	Stock-Based Compensation During the six-month periods ended June 30, 2023 and 2022 no equity awards were issued by the Company. 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. The Company estimated the fair value of stock-based awards granted during the three and six months ended June 30, 2023, under the Company’s employee stock purchase plan using the following weighted average assumptions: expected life of 1.0 year, expected volatility of 95.2%, dividend yield of 0% and risk-free interest rate of 4.7%. Total stock-based compensation expense recorded for the three and six months ended June 30, 2023 was $14,000 and $36,000, respectively, and for the three and six months ended June 30, 2022 was $29,000 and $59,000, respectively.
Net Income (Loss) per Share	Net (Loss) Income per Share . Due to the net loss incurred during the three months ended June 30, 2023 all outstanding stock awards were anti-dilutive for that periods. For the six months ended June 30, 2023 options to purchase approximately 14,000 shares of common stock with a weighted average exercise price of $11.74 were outstanding and were not included in the computation of common stock equivalents for the six months ended June 30, 2023 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 and six months ended June 30, 2022 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. Weighted average common shares outstanding for the three and six months ended June 30, 2023 and 2022 were as follows: Three Months Ended Six Months Ended June 30 June 30 2023 2022 2023 2022 Denominator for basic net loss per share - weighted average shares 1,798,000 1,788,000 1,798,000 1,787,000 Effect of dilutive securities: Stock options and restricted stock units — — 4,000 — Denominator for diluted net loss per share - weighted average shares 1,798,000 1,788,000 1,802,000 1,787,000

Asset Sale (Tables)

Asset Sale (Tables)	6 Months Ended
	Jun. 30, 2023
Asset Sale
Summary of balance sheet adjustments	Historical Discontinued Operations Adjustments Pro Forma Continued Operations ASSETS Current Assets: Cash and cash equivalents $ 11,419,000 $ - $ 11,419,000 Restricted cash 85,000 - 85,000 Accounts receivable, net 7,583,000 - 7,583,000 Inventories 28,000 (28,000 ) - Income tax receivable 90,000 - 90,000 Prepaid production costs 143,000 (143,000 ) - Other prepaid expense 208,000 (19,000 ) 189,000 Current assets held for sale - 190,000 190,000 Total Current Assets 19,556,000 - 19,556,000 Other Assets: Property and equipment, net 71,000 (71,000 ) - Operating lease right-of-use assets 123,000 (123,000 ) - Other, net 10,000 - 10,000 Non-current assets held for sale - 194,000 194,000 Total Assets $ 19,760,000 $ - $ 19,760,000 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts payable 1,324,000 (72,000 ) 1,252,000 Accrued liabilities 2,031,000 - 2,031,000 Current portion of operating lease liabilities 16,000 (16,000 ) - Deferred revenue 1,154,000 (1,154,000 ) - Current liabilities held for sale - 1,242,000 1,242,000 Total Current Liabilities 4,525,000 - 4,525,000 Long-Term Liabilities: Accrued income taxes 55,000 - 55,000 Operating lease liabilities 123,000 (123,000 ) - Non-current liabilities held for sale - 123,000 123,000 Total Long-Term Liabilities 178,000 - 178,000 Commitments and Contingencies - - - Shareholders' Equity: Total Shareholders' Equity 15,057,000 - 15,057,000 Total Liabilities and Shareholders' Equity $ 19,760,000 $ - $ 19,760,000
Summary of operations adjustments	Historical Discontinued Operations Adjustments Pro Forma Continuing Operations Net services revenues $ 6,211,000 $ (6,211,000 ) $ - Cost of services 4,588,000 (4,588,000 ) - Gross Profit 1,623,000 (1,623,000 ) - Operating Expenses: Selling 361,000 (361,000 ) - Marketing 300,000 (300,000 ) - General and administrative 1,129,000 (572,000 ) 557,000 Total Operating Expenses 1,790,000 (1,233,000 ) 557,000 Operating Income (Loss) (167,000 ) (390,000 ) (557,000 ) Interest income 135,000 - 135,000 Income (Loss) from Operations Before Taxes (32,000 ) (390,000 ) (422,000 ) Income tax expense 4,000 - 4,000 Net Income (Loss) from Continuing Operations $ (426,000 ) Net (Income) Loss from Discontinued Operations $ (390,000 ) Net Income (Loss) $ (36,000 ) Net income (loss) per share, basic and diluted: Continuing operations $ (0.24 ) Discontinued operations $ 0.22 Total $ (0.02 ) Weighted average shares outstanding: Basic and diluted 1,798,000 1,798,000 1,798,000

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2023
Summary of Significant Accounting Policies
Schdule of Cash And Cash Equivalents And Restricted Cash	June 30, December 31, 2023 2022 Cash and cash equivalents $ 11,419,000 $ 14,439,000 Restricted cash 85,000 85,000 Total cash, cash equivalents and restricted cash $ 11,504,000 $ 14,524,000
Schedule Of Property And Equipment	June 30, December 31, 2023 2022 Property and Equipment: Production tooling, machinery and equipment $ - $ 27,000 Office furniture and fixtures 85,000 95,000 Computer equipment and software 531,000 771,000 Leasehold improvements 19,000 19,000 Construction in-progress 12,000 3,000 647,000 915,000 Accumulated depreciation and amortization (576,000 ) (844,000 ) Net Property and Equipment $ 71,000 $ 71,000
Schdule of Weighted Average Common Shares Outstanding	Three Months Ended Six Months Ended June 30 June 30 2023 2022 2023 2022 Denominator for basic net loss per share - weighted average shares 1,798,000 1,788,000 1,798,000 1,787,000 Effect of dilutive securities: Stock options and restricted stock units — — 4,000 — Denominator for diluted net loss per share - weighted average shares 1,798,000 1,788,000 1,802,000 1,787,000

Revenue Recognition (Tables)

Revenue Recognition (Tables)	6 Months Ended
	Jun. 30, 2023
Revenue Recognition
Disaggregation of Revenue	Three months ended June 30 Six months ended June 30 2023 2022 2023 2022 Services Revenues Services Revenues Services Revenues Services Revenues Timing of revenue recognition: Services transferred over time $ 470,000 $ 502,000 $ 733,000 $ 958,000 Services transferred at a point in time 5,741,000 2,752,000 18,309,000 8,444,000 Total $ 6,211,000 $ 3,254,000 $ 19,042,000 $ 9,402,000
Schedule Of Deferred revenue	Balance at December 31, 2022 $ 2,427,000 Reclassification of beginning deferred revenue to revenue, as a result of performance obligations satisfied (2,066,000 ) Cash received in advance and not recognized as revenue 793,000 Balance at June 30, 2023 $ 1,154,000

Lease (Tables)

Lease (Tables)	6 Months Ended
	Jun. 30, 2023
Leases
Cost components of operating leases	Three months ended June 30, 2023 Six months ended June 30, 2023 Corporate Operating Corporate Operating Headquarters Other Leases Headquarters Other Leases Operating lease cost $ 10,000 $ - $ 10,000 $ 21,000 $ 4,000 $ 25,000 Variable lease cost 2,000 - 2,000 6,000 4,000 10,000 Short-term lease cost - 10,000 10,000 - 10,000 10,000 Total $ 12,000 $ 10,000 $ 22,000 $ 27,000 $ 18,000 $ 45,000 Three months ended June 30, 2022 Six months ended June 30, 2022 Corporate Operating Corporate Operating Headquarters Other Leases Headquarters Other 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
Maturity of Lease Liabilities	2023 $ - 2024 52,000 2025 53,000 2026 55,000 Total lease payments 160,000 Less: Interest 21,000 Present value of lease liabilities $ 139,000

Income Taxes (Tables)

Income Taxes (Tables)	6 Months Ended
	Jun. 30, 2023
Income Taxes
Schedule Of Reconciliation of effective federal income tax rate	Six months ended June 30, 2023 2022 Federal statutory rate 21.0 % 21.0 % Stock-based awards 2.2 (0.5 ) State taxes 3.8 3.4 Impact of uncertain tax positions 0.1 (1.9 ) Valuation allowance (24.2 ) (25.0 ) Other (2.5 ) 0.8 Effective federal income tax rate 0.4 % (2.2 )%

Asset Sale (Details)

Asset Sale (Details) - USD ($)	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021
Cash and cash equivalents	$ 11,419,000		$ 14,439,000
Restricted cash	85,000		85,000
Accounts receivable, net	7,583,000		5,557,000
Inventories	28,000		29,000
Inventories	(28,000)		(29,000)
Income tax receivable	90,000		28,000
Prepaid production costs	143,000		535,000
Prepaid production costs	(143,000)		(535,000)
Other prepaid expense	208,000		80,000
Other prepaid expense	(208,000)		(80,000)
Current assets held for sale	0
Total Current Assets	19,556,000		20,753,000
Property and equipment, net	71,000		71,000
Property and equipment, net	(71,000)		(71,000)
Operating lease right-of-use assets	123,000		144,000
Operating lease right-of-use assets	(123,000)		(144,000)
Other, net	10,000		0
Non-Current assets held for sale	0
Total Assets	19,760,000		20,968,000
Accounts payable	1,324,000		2,653,000
Accounts payable	(1,324,000)		(2,653,000)
Accrued liabilities	2,031,000
Current portion of operating lease liabilities	16,000		4,000
Current portion of operating lease liabilities	(16,000)		(4,000)
Deferred revenue	1,154,000		2,427,000
Deferred revenue	(1,154,000)		(2,427,000)
Current liabilities held for sale	0
Total Current Liabilities	4,525,000		7,374,000
Accrued income taxes	55,000		53,000
Operating lease liabilities	(123,000)		(140,000)
Operating lease liabilities	123,000		140,000
Total Long-Term Liabilities	178,000
Total Long-Term Liabilities	178,000		193,000
Commitments and Contingencies	0		0
Shareholders' Equity:
Total Shareholders' Equity	15,057,000	$ 15,079,000	13,401,000	$ 2,269,000	$ 3,313,000	$ 3,193,000
Total Liabilities and Shareholders' Equity	19,760,000		$ 20,968,000
Discontinued Operations Adjustments [Member]
Cash and cash equivalents	0
Restricted cash	0
Accounts receivable, net	0
Inventories	28,000
Inventories	(28,000)
Income tax receivable	0
Prepaid production costs	143,000
Prepaid production costs	(143,000)
Other prepaid expense	19,000
Other prepaid expense	(19,000)
Current assets held for sale	190,000
Total Current Assets	0
Property and equipment, net	71,000
Property and equipment, net	(71,000)
Operating lease right-of-use assets	123,000
Operating lease right-of-use assets	(123,000)
Other, net	0
Non-Current assets held for sale	194,000
Total Assets	0
Accounts payable	72,000
Accounts payable	(72,000)
Accrued liabilities	0
Current portion of operating lease liabilities	16,000
Current portion of operating lease liabilities	(16,000)
Deferred revenue	1,154,000
Deferred revenue	(1,154,000)
Current liabilities held for sale	1,242,000
Total Current Liabilities	0
Accrued income taxes	0
Operating lease liabilities	(123,000)
Operating lease liabilities	123,000
Total Long-Term Liabilities	0
Commitments and Contingencies	0
Shareholders' Equity:
Total Shareholders' Equity	0
Total Liabilities and Shareholders' Equity	0
Pro Forma Continuing Operations [Member]
Cash and cash equivalents	11,419,000
Restricted cash	85,000
Accounts receivable, net	7,583,000
Inventories	0
Inventories	0
Income tax receivable	90,000
Prepaid production costs	0
Prepaid production costs	0
Other prepaid expense	189,000
Other prepaid expense	(189,000)
Current assets held for sale	190,000
Total Current Assets	19,556,000
Property and equipment, net	0
Property and equipment, net	0
Operating lease right-of-use assets	0
Operating lease right-of-use assets	0
Other, net	10,000
Non-Current assets held for sale	194,000
Total Assets	19,760,000
Accounts payable	1,252,000
Accounts payable	(1,252,000)
Accrued liabilities	2,031,000
Current portion of operating lease liabilities	0
Current portion of operating lease liabilities	0
Deferred revenue	0
Deferred revenue	0
Current liabilities held for sale	1,242,000
Total Current Liabilities	4,525,000
Accrued income taxes	55,000
Operating lease liabilities	0
Operating lease liabilities	0
Total Long-Term Liabilities	178,000
Commitments and Contingencies	0
Shareholders' Equity:
Total Shareholders' Equity	15,057,000
Total Liabilities and Shareholders' Equity	$ 19,760,000

Asset Sale (Details 1)

Asset Sale (Details 1) - USD ($)	3 Months Ended				6 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
Net services revenues	$ 6,211,000		$ 3,254,000		$ 19,042,000	$ 9,402,000
Cost of services	4,588,000		2,838,000		14,499,000	7,706,000
Cost of services	(4,588,000)		(2,838,000)		(14,499,000)	(7,706,000)
Gross Profit	1,623,000		416,000		4,543,000	1,696,000
Selling	361,000		290,000		725,000	632,000
Selling	(361,000)		(290,000)		(725,000)	(632,000)
Marketing	300,000		279,000		596,000	538,000
Marketing	(300,000)		(279,000)		(596,000)	(538,000)
General and administrative	1,129,000		948,000		1,850,000	1,554,000
General and administrative	(1,129,000)		(948,000)		(1,850,000)	(1,554,000)
Total Operating Expenses	1,790,000		1,517,000		3,171,000	2,724,000
Operating Income	(167,000)		(1,101,000)		1,372,000	(1,028,000)
Interest income	135,000		31,000		247,000	28,000
Income (Loss) from Continuing Operations Before Taxes	(32,000)		(1,070,000)		1,619,000	(1,000,000)
Income tax expense	4,000		14,000		7,000	22,000
Net income (loss)	$ (36,000)	$ 1,648,000	$ (1,084,000)	$ 62,000	$ 1,612,000	$ (1,022,000)
Continuing operations	$ (0.02)		$ (0.61)		$ 0.90	$ (0.57)
Discontinued operations	(0.02)		$ (0.61)		$ 0.89	$ (0.57)
Net income (loss) per share, basic and diluted	$ (0.02)
Weighted Average Number Of Share Basic and Diluted	1,798,000
Discontinued Operations Adjustments [Member]
Net services revenues	$ (6,211,000)
Cost of services	4,588,000
Cost of services	(4,588,000)
Gross Profit	(1,623,000)
Selling	361,000
Selling	(361,000)
Marketing	300,000
Marketing	(300,000)
General and administrative	572,000
General and administrative	(572,000)
Total Operating Expenses	(1,233,000)
Operating Income	(390,000)
Interest income	0
Income (Loss) from Continuing Operations Before Taxes	(390,000)
Income tax expense	0
Income from Discontinued Operations, net of tax	$ (390,000)
Discontinued operations	$ 0.22
Weighted Average Number Of Share Basic and Diluted	1,798,000
Pro Forma Continuing Operations [Member]
Net services revenues	$ 0
Cost of services	0
Cost of services	0
Gross Profit	0
Selling	0
Selling	0
Marketing	0
Marketing	0
General and administrative	557,000
General and administrative	(557,000)
Total Operating Expenses	557,000
Operating Income	(557,000)
Interest income	135,000
Income (Loss) from Continuing Operations Before Taxes	(422,000)
Income tax expense	4,000
Net Income (Loss) from Continuing Operations	$ (426,000)
Continuing operations	$ (0.24)
Weighted Average Number Of Share Basic and Diluted	1,798,000

Asset Sale (Detail Narrative)

Asset Sale (Detail Narrative) - Subsequent Event - USD ($)		3 Months Ended
	Aug. 03, 2023	Sep. 30, 2023
Transaction-related costs		$ 350,000
Description of escrowdedfuture claims for agreement	The Company received significant cash payments between July 1 and August 3, 2023 for unexecuted programs, which the Company will retain, but which will reduce the purchase price. Under the Purchase Agreement, $200,000 was escrowed for a twelve-month period for any future claims, as defined in the Purchase Agreement, by the Buyer against the Company
Assets and certain liabilities	$ 3,500,000
Employees bonuses		164,000
Retention payout		143,000
Other benefits		$ 1,537,000

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Summary of Significant Accounting Policies
Cash and cash equivalents	$ 11,419,000	$ 14,439,000
Restricted cash	85,000	85,000
Total cash, cash equivalents and retricted cash	$ 11,504,000	$ 14,524,000

Summary of Significant Accoun_5

Summary of Significant Accounting Policies (Details 1) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Gross Property And Equipment	$ 647,000	$ 915,000
Accumulated Depreciation And Amortization	(576,000)	(844,000)
Net Property And Equipment	71,000	71,000
Production tooling, machinery and equipment
Gross Property And Equipment	0	27,000
Office Furniture and Fixtures
Gross Property And Equipment	85,000	95,000
Computer Equipment and Software
Gross Property And Equipment	531,000	771,000
Leasehold improvements
Gross Property And Equipment	19,000	19,000
Construction in-Progress
Gross Property And Equipment	$ 12,000	$ 3,000

Summary of Significant Accoun_6

Summary of Significant Accounting Policies (Details 2) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Summary of Significant Accounting Policies
Denominator for basic net loss per share - weighted average shares	1,798,000	1,788,000	1,798,000	1,787,000
Effect of dilutive securities: stock options, restricted stock and restricted stock units	0	0	4,000	0
Denominator for diluted net loss per share - weighted average shares	1,798,000	1,788,000	1,802,000	1,787,000

Summary of Significant Accoun_7

Summary of Significant Accounting Policies (Details Narratives) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Depreciation Expense	$ 12,000	$ 15,000	$ 26,000	$ 31,000
Stock-based Compensation Expense	$ 14,000	$ 29,000	$ 36,000	$ 59,000
Weighted average exercise price			$ 11.74
Options to purchase			14,000
Expected life			1 year
Expected volatility			95.20%
Restricted units outstanding	3,396		3,396
Property and Equipment writeoff	$ 268,000
Divdend Rate			0%
Option to puchase shares of common stock	14,086		14,086
Risk-free interest rate			4.70%
2018 Equity Incentive Plan
Exercise price	$ 8.16		$ 8.16
Grant date fair value SharesOfCommon Stock	$ 45,000		$ 45,000
Restricted stock grants totaling	$ 5,514		$ 5,514

Revenue Recognition (Details)

Revenue Recognition (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Total Net Sales	$ 6,211,000	$ 3,254,000	$ 19,042,000	$ 9,402,000
Services Transferred at Point in Time [Member]
Total Net Sales	5,741,000	2,752,000	18,309,000	8,444,000
Transferred Over Time [Member]
Total Net Sales	$ 470,000	$ 502,000	$ 733,000	$ 958,000

Revenue Recognition (Details 1)

Revenue Recognition (Details 1)	6 Months Ended
	Jun. 30, 2023 USD ($)
Revenue Recognition
Deferred Revenue, Beginning	$ 2,427,000
Reclassification Of Beginning Deferred Revenue To Revenue, As A Result Of Performance Obligations Satisfied	2,066,000
Cash Received In Advance And Not Recognized As Revenue	793,000
Deferred Revenue, ending	$ 1,154,000

Leases (Details)

Leases (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Corporate Headquarters
Operating Lease Cost	$ 10,000	$ 16,000	$ 21,000	$ 33,000
Variable Lease Cost	2,000	10,000	6,000	20,000
Short-term lease cost	0		0
Total	12,000	26,000	27,000	53,000
Other
Operating Lease Cost	0	5,000	4,000	9,000
Variable Lease Cost	0	3,000	4,000	6,000
Short-term lease cost	10,000		10,000
Total	10,000	8,000	18,000	15,000
Operating Leases
Operating Lease Cost	10,000	21,000	25,000	42,000
Variable Lease Cost	2,000	13,000	10,000	26,000
Short-term lease cost	10,000		10,000
Total	$ 22,000	$ 34,000	$ 45,000	$ 68,000

Leases (Details 1)

Leases (Details 1)	Jun. 30, 2023 USD ($)
Leases
2023	$ 0
2024	52,000
2025	53,000
2026	55,000
Total lease payments	160,000
Less: interest	21,000
Present value of lease liabilities	$ 139,000

Leases (Details Narrative)

Leases (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Restricted cash	$ 85,000		$ 85,000
Incremental borrowing rate	7%		7%
Cash outflow for operating leases	$ 0	$ 20,000	$ 10,000	$ 41,000
Corporate Headquarters
Remaining lease term			3 years 6 months

Income Taxes (Details)

Income Taxes (Details)	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Income Taxes
Federal statutory rate	21%	21%
Stock based awards	2.20%	(0.50%)
State taxes	3.80%	3.40%
Impact of uncertain tax positions	0.10%	(1.90%)
Valuation allowance	(24.20%)	(25.00%)
Other	(2.50%)	0.80%
Effective federal income tax rate	0.40%	(2.20%)

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Income Taxes
Income Tax Benefit (expense)	$ 4,000	$ 14,000	$ 7,000	$ 22,000
Income Tax Rate, Percentage	12.50%	1.30%	0.40%	2.20%
Unrecognized Tax Benefits	$ 55,000		$ 55,000		$ 53,000
Unrecognized Tax Benefits Effective Income Tax Rates Of Future Periods			55,000
Net operating loss to carry forward	$ 1,300,000		$ 1,300,000		$ 2,900,000
Federal statutory rate			21%	21%

Concentrations (Details Narrati

Concentrations (Details Narrative)	6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Sales Revenue, Net | Customer One
Customer's percentage of net sales	27%	22%
Sales Revenue, Net | Customer Three
Customer's percentage of net sales	18%	15%
Sales Revenue, Net | Customer Two
Customer's percentage of net sales		10%
Accounts Receivable | Customer One
Customer's percentage of net sales	70%		20%
Accounts Receivable | Customer Three
Customer's percentage of net sales			11%
Accounts Receivable | Customer Two
Customer's percentage of net sales			19%

Legal Proceedings (Details Narr

Legal Proceedings (Details Narrative) - Settlement agreement - USD ($)	3 Months Ended
	Sep. 30, 2022	Jul. 01, 2022
Agreement amount		$ 20,000,000
Net proceeds before income tax	$ 12,000,000