Spy (XSPY) 10-Q 6 May 14 2014 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information (USD $)	3 Months Ended
	Mar. 31, 2014	Nov. 01, 2013
Document And Entity Information	'	'
Entity Registrant Name	'Spy Inc.	'
Entity Central Index Key	'0000932372	'
Document Type	'10-Q	'
Document Period End Date	31-Mar-14	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--12-31	'
Is Entity a Well-known Seasoned Issuer?	'No	'
Is Entity a Voluntary Filer?	'No	'
Is Entity's Reporting Status Current?	'Yes	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Public Float	'	$20,200,000
Entity Common Stock, Shares Outstanding	'	13,337,165
Document Fiscal Period Focus	'Q1	'
Document Fiscal Year Focus	'2014	'

CONSOLIDATED_BALANCE_SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)	Mar. 31, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Assets	'	'
Cash	$688	$686
Accounts receivable, net	5,622	6,543
Inventories, net	4,344	5,872
Prepaid expenses and other current assets	691	680
Income taxes receivable	'	3
Total current assets	11,345	13,784
Property and equipment, net	394	438
Intangible assets, net of accumulated amortization of $792 and $782 at March 31, 2014 and December 31, 2013, respectively	63	72
Other assets	44	63
Total assets	11,846	14,357
Liabilities and Stockholders' Deficit	'	'
Lines of credit	1,686	4,024
Current portion of capital leases	71	77
Current portion of notes payable	16	16
Accounts payable	1,047	1,302
Accrued expenses and other liabilities	3,655	3,069
Total current liabilities	6,475	8,488
Capital leases, less current portion	75	92
Notes payable, less current portion	12	16
Note payable to stockholders	21,452	21,452
Total liabilities	28,014	30,048
Stockholders' deficit	'	'
Preferred stock: par value $0.0001; 5,000,000 authorized; none issued	'	'
Common stock: par value $0.0001; 100,000,000 shares authorized; 13,324,037 and 13,184,876 shares issued and outstanding at March 31, 2014 and December 31, 2013, respectively	1	1
Additional paid-in-capital	45,597	45,331
Accumulated other comprehensive income	519	520
Accumulated deficit	-62,285	-61,543
Total stockholders' deficit	-16,168	-15,691
Total liabilities and stockholders' deficit	$11,846	$14,357

CONSOLIDATED_BALANCE_SHEETS_Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Mar. 31, 2014	Dec. 31, 2013
In Thousands, except Share data, unless otherwise specified
Current assets	'	'
Intangible assets, accumulated amortization	$792	$782
Stockholders' equity (deficit)	'	'
Preferred stock, par value	$0.00	$0.00
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Common stock, par value	$0.00	$0.00
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	13,324,037	13,184,876
Common stock, shares outstanding	13,324,037	13,184,876

CONSOLIDATED_STATEMENTS_OF_COM

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Income Statement [Abstract]	'	'
Net sales	$9,192	$9,008
Cost of sales	4,412	4,407
Gross profit	4,780	4,601
Operating expenses:	'	'
Sales and marketing	2,920	2,854
General and administrative	1,483	1,447
Shipping and warehousing	140	169
Research and development	153	102
Total operating expenses	4,696	4,572
Income from operations	84	29
Other income (expense):	'	'
Interest expense	-757	-732
Foreign currency transaction loss	-67	-18
Other Income	1	'
Total other expense	-823	-750
Loss before provision for income taxes	-739	-721
Income tax expense	3	'
Net loss	-742	-721
Net loss per share of Common Stock	'	'
Basic	($0.06)	($0.05)
Diluted	($0.06)	($0.05)
Shares used in computing net loss per share of Common Stock	'	'
Basic	13,222,000	13,115,000
Diluted	13,222,000	13,115,000
Other comprehensive income (loss)	'	'
Foreign currency translation adjustment (loss) gain	-94	177
Unrealized gain (loss) on foreign currency exposure of net investment in foreign operations	93	-194
Total other comprehensive loss	-1	-17
Comprehensive loss	($743)	($738)

CONSOLIDATED_STATEMENTS_OF_CAS

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Operating Activities	'	'
Net loss	($742)	($721)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:	'	'
Depreciation and amortization	68	77
Paid-in-kind interest	632	569
Share-based compensation	142	166
Non-cash board of directors fees	26	26
Provision for doubtful accounts	-29	38
Gain on sale of property or equipment	-3	'
Foreign currency transaction gain	'	-17
Amortization of debt discount	18	30
Change in operating assets and liabilities:	'	'
Accounts receivable, net	950	567
Inventories, net	1,528	368
Prepaid expenses and other current assets	-13	-83
Other assets	2	20
Accounts payable	-256	415
Accrued expenses and other liabilities	-45	91
Income taxes payable/receivable	3	1
Net cash provided by operating activities	2,281	1,547
Investing Activities	'	'
Purchases of property and equipment	-28	-43
Proceeds from sale of property and equipment	16	'
Net cash used in investing activities	-12	-43
Financing Activities	'	'
Line of credit, net	-2,338	-873
Principal payments on secured notes payable	-4	-4
Principal payments on capital leases	-23	-24
Proceeds from exercise of stock options	98	'
Net cash used in financing activities	-2,267	-901
Net increase in cash	2	603
Cash at beginning of period	686	818
Cash at end of period	688	1,421
Cash paid during the period for:	'	'
Interest	110	163
Income taxes	3	'
Summary of non-cash financing and investing activities:	'	'
Accrued board of directors fees paid in fully vested non-restricted stock awards	26	26
Acquisition of property and equipment through capital leases	'	$103

Description_of_Business_and_Li

Description of Business and Liquidity	3 Months Ended
	Mar. 31, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]	'
Description of Business and Liquidity	'
	SPY Inc. (the “Company”) happily designs, markets and distributes premium sunglasses, goggles and prescription frame eyewear.  In 1994, the Company began as a grassroots brand in Southern California with the goal of creating innovative and aesthetically progressive eyewear, and, in doing so, the Company believes it has captured the imagination of the action sports market with authentic, distinctive, performance-driven products under the SPY® brand.  Today, the Company believes the SPY® brand, symbolized by the distinct “cross” logo, is a well recognized eyewear brand in its segment of the action sports industry, with a reputation for its high quality products, style and innovation, most notably showcased in its Happy Lens™ technology.
	The Company was incorporated as Sports Colors, Inc. in California in August 1992, but had no operations until April 1994, when the Company changed its name to Spy Optic, Inc.  In November 2004, the Company reincorporated in Delaware and changed its name to Orange 21 Inc.  In February 2012, the Company changed its name from Orange 21 Inc. to SPY Inc. to better reflect the focus of its business going forward.
	The Company operates through its subsidiaries and currently has one wholly-owned subsidiary incorporated in California, Spy Optic Inc. (“SPY North America”), and one wholly-owned subsidiary incorporated in Italy, Spy Optic Europe S.r.l. S.U. (“SPY Europe”). In March 2014, the Company received permission from the Italian government to dissolve SPY Europe. The company expects to complete this process late in 2014, and does not anticipate any material expenses to dissolve SPY Europe.
	Capital Resources
	During the three-months ended March 31, 2014 and year ended December 31, 2013, the Company had positive cash flow from operations principally as a result of a significant reduction in operating expenses and increases in gross profit. However, the Company has a history of incurring significant negative cash flow from operations, operating and net losses, and has significant working capital requirements. The Company anticipates that it will continue to have ongoing cash requirements to finance its seasonal and ongoing working capital needs and net losses.
	In order to finance the Company's working capital requirements, the Company has relied and anticipates that it will continue to rely on SPY North America’s credit line with BFI Business Finance (“BFI”) (the “BFI Line of Credit”) and its credit facilities with Costa Brava Partnership III, L.P. (“Costa Brava”).  In addition, SPY North America has relied on debt and equity financing from Harlingwood (Alpha), LLC (“Harlingwood”).  Costa Brava and Harlingwood are related parties.  The total outstanding indebtedness of the Company was $23.9 million and $25.7 million at March 31, 2014 and December 31, 2013 respectively.  (See Note 7 “Short-Term Debt ”, Note 8 “Long-Term Debt”, Note 11 “Related Party Transactions” and Note 14 “Subsequent Events”).
	The Company believes it will have sufficient cash on hand and cash available under existing credit facilities to meet its operating requirements for at least the next twelve months, if the Company is able to achieve some or a combination of the following factors: (i) achieve its desired sales growth, (ii) continue the improvements in the management of working capital, and (iii) continue to manage and operate the Company at reduced levels of sales, marketing, general and administrative, and other operating expenses.  However, the Company will need to continue to access its existing credit facilities during the next twelve months to support its planned operations and working capital requirements, and intends to (i) continue to borrow, to the extent available, from the BFI Line of Credit, (ii) increase the level of outstanding principal due to Costa Brava by borrowing up to the maximum amount available, including through the ongoing deferral of interest payments otherwise payable to Costa Brava, provided, in each case, that these facilities remain available and on terms acceptable to the Company, and (iii) if necessary, raise additional capital through debt or equity financings.
	The Company does not anticipate that it can generate sufficient cash from operations to repay the amounts due under the BFI Line of Credit which is scheduled to renew in February 2015, and the borrowings from Costa Brava and Harlingwood due, as amended, in December 31, 2016 (see Note 14 “Subsequent Event”), consisting of (i) $15.5 million aggregate original principal borrowings from Costa Brava and $1.5 million in borrowings from Harlingwood as of March 31, 2014, (ii) an additional amount of approximately $4.8 million and $0.3 million, respectively, of unpaid interest related to Costa Brava and Harlingwood loans, which was added to the principal balance of each respective borrowing as of March 31, 2014, and (iii) future interest amounts added to the outstanding principal amounts due under the Harlingwood loans, rather than paid in cash (“Accrued PIK Interest”). The Company will therefore need to renew the BFI Line of Credit at its annual renewal in February 2015 and continue to extend the future maturity dates of the Costa Brava and Harlingwood indebtedness. If the Company is unable to renew the BFI Line of Credit and extend future maturity dates of the Costa Brava and Harlingwood indebtedness, it will need to raise substantial additional capital through debt or equity financing to continue its operations. No assurances can be given that any such financing will be available to the Company on favorable terms, if at all. The inability to obtain debt or equity financing in a timely manner and in amounts sufficient to fund the Company’s operations, or the inability to renew the BFI Line of Credit or to extend future maturity dates of the Costa Brava and Harlingwood indebtedness, if necessary, would have an immediate and substantial adverse impact on the Company’s business, financial condition and results of operations.

Basis_of_Presentation_and_Rece

Basis of Presentation and Recently Issued Accounting Principles	3 Months Ended
	Mar. 31, 2014
Accounting Policies [Abstract]	'
Basis of Presentation and Recently Issued Accounting Principles	'
	Basis of Presentation
	The accompanying Consolidated Financial Statements of SPY Inc. and its wholly owned subsidiaries have been prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States.  In the opinion of management, the Consolidated Financial Statements contain all adjustments, consisting of normal recurring items, considered necessary for a fair presentation of the Company’s financial position, results of operations and cash flows.  The Consolidated Financial Statements contained in this Form 10-Q should be read in conjunction with the Consolidated Financial Statements contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2013.
	Recently Issued Accounting Principles
	There are no recently issued accounting principles subsequent to the Company’s disclosure in the Annual Report on Form 10-K for the year ended December 31, 2013, which would have a significant impact on the Company’s Consolidated Financial Statements.

Loss_per_Share

Loss per Share	3 Months Ended
	Mar. 31, 2014
Net loss per share of Common Stock	'
Loss per Share	'
	Basic loss per share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during the period.  Diluted loss per share is calculated by including the additional shares of common stock issuable upon the conversion of convertible debt and the exercise of outstanding options and warrants, using the treasury stock method.  The following table lists the potentially dilutive equity instruments, each convertible into one share of common stock, used in the calculation of diluted loss per share for the periods presented:
		Three Months Ended
		March 31,
		2014		2013
		(Thousands)
	Weighted average common shares outstanding – basic		13,222		13,115
	Assumed conversion of dilutive stock options, warrants and convertible debt		—		—
	Weighted average common shares outstanding – dilutive		13,222		13,115
	The following potentially dilutive instruments were not included in the diluted per share calculation for the periods presented as their inclusion would have been antidilutive:
		Three Months Ended
		March 31,
	Shares Issuable through Exercise or Conversion of:	2014		2013
		(Thousands)
	Stock options		3,052		2,790
	Warrants		244		244
	Convertible debt		2,240		2,133
	Total		5,536		5,167

Accumulated_Other_Comprehensiv

Accumulated Other Comprehensive Income	3 Months Ended
	Mar. 31, 2014
Equity [Abstract]	'
Accumulated Other Comprehensive Income	'
	Accumulated other comprehensive income represents the results of operations adjusted to reflect all items recognized under accounting standards as components of comprehensive income.
	The components of accumulated other comprehensive income, net of tax, are as follows:
		March 31,		December 31,
		2014		2013
		(Thousands)
	Equity adjustment from foreign currency translation	$	422	$	275
	Unrealized gain on foreign currency exposure of net investment in foreign operations		97		245
	Accumulated other comprehensive income	$	519	$	520

Accounts_Receivable

Accounts Receivable	3 Months Ended
	Mar. 31, 2014
Receivables [Abstract]	'
Accounts Receivable	'
	Accounts receivable consisted of the following:
		March 31,		December 31,
		2014		2013
		(Thousands)
	Trade receivables	$	7,810	$	8,539
	Less allowance for doubtful accounts		-332		-369
	Less allowance for returns		-1,856		-1,627
	Accounts receivable, net	$	5,622	$	6,543

Inventories

Inventories	3 Months Ended
	Mar. 31, 2014
Inventory Disclosure [Abstract]	'
Inventories	'
	Inventories consisted of the following:
		March 31,		December 31,
		2014		2013
		(Thousands)
	Raw materials	$	17	$	11
	Finished goods		4,619		6,097
	Less allowance for excess and obsolete inventory		-292		(236)
	Inventories, net	$	4,344	$	5,872

ShortTerm_Debt

Short-Term Debt	3 Months Ended
	Mar. 31, 2014
Debt Disclosure [Abstract]	'
Short-Term Debt	'
	SPY North America has a Loan and Security Agreement with BFI with a maximum borrowing limit of $7.0 million.  The maximum availability was $5.2 million and $5.1 million at March 31, 2014 and December 31, 2013, respectively, of which SPY North America had borrowed $1.7 million and $4.0 million, respectively, as of those dates. The BFI Line of Credit renews annually in February for one additional year unless otherwise terminated by either SPY North America or BFI. The Company had $3.5 million and $1.1 million in unused availability as of March 31, 2014 and December 31, 2013, respectively.
	Actual borrowing availability under the BFI Line of Credit is based on eligible trade receivable and inventory levels of SPY North America, subject to the following limitations: (i) up to 80% of eligible United States accounts receivable, (ii) 80% of eligible Canadian receivables, (iii) 50% of eligible United States inventory, provided, however, such amount does not exceed 50% of eligible United States and Canadian accounts receivable and does not exceed the maximum inventory borrowing amount of $2.5 million, and (iv) advances against eligible foreign accounts receivable (excluding Canadian accounts receivable) up to $0.4 million.  Borrowings under the BFI Line of Credit bear interest at a rate per annum equal to the prime rate, as reported in the Western Edition of The Wall Street Journal, plus 1.75%, with a minimum monthly interest charge of $2,000. The interest rate was 5.0% per annum at March 31, 2014. The Company and SPY North America granted BFI a security interest in substantially all of SPY North America’s assets, and substantially all of the Company’s accounts receivable and inventories to secure BFI’s position under the BFI Line of Credit.  Additionally, the obligations under the BFI Line of Credit are guaranteed by SPY Inc.
	The BFI Line of Credit imposes certain covenants on SPY North America, including, but not limited to, covenants requiring SPY North America to provide certain periodic reports to BFI, to inform BFI of certain changes in the business, to refrain from incurring additional debt in excess of $100,000 and to refrain from paying dividends.  The BFI Line of Credit also contains cross default provisions. BFI may declare SPY North America in default if SPY North America experiences a material adverse change in its business, financial condition, or in its ability to perform the obligations owed under the BFI Line of Credit.  BFI’s prior consent, which BFI will not unreasonably withhold, is required in the event that SPY North America seeks additional debt financing, including debt financing subordinate to BFI.  SPY North America has also established bank accounts in BFI’s name in the United States and Canada into which collections on accounts receivable and other collateral are deposited (the “Collateral Accounts”).  Pursuant to the deposit control account agreements between BFI and SPY North America, BFI is entitled to sweep all amounts deposited into the Collateral Accounts and apply the funds to outstanding obligations under the BFI Line of Credit; provided that BFI is required to distribute to SPY North America any amounts remaining after payment of all amounts due under the BFI Line of Credit.  SPY North America was in compliance with all covenants under the BFI Line of Credit at March 31, 2014.

LongTerm_Debt

Long-Term Debt	3 Months Ended
	Mar. 31, 2014
Debt Disclosure [Abstract]	'
Long-Term Debt	'
	Costa Brava Term Note
	SPY North America issued a promissory note to Costa Brava in the principal amount of $7.0 million (“Costa Brava Term Note”), which amount was outstanding at each of March 31, 2014 and December 31, 2013 (excluding Accrued PIK Interest of $2.4 million and $2.1 million, respectively). As of March 31, 2014, approximately $264,000 of accrued interest was reclassified to accrued liabilities and was paid in April 2014. The Costa Brava Term Note was amended in April 2014 to extend the due date from April 1, 2015 to December 31, 2016.  The Costa Brava Term Note is subordinate to the BFI Line of Credit, pursuant to the terms of a debt subordination agreement between Costa Brava and BFI.
	Interest attributable to the Costa Brava Term Note accrues daily at a rate equal to 12% per annum.  On January 1, 2012, SPY North America began adding Accrued PIK Interest as an addition to the outstanding principal amount due, rather than making interest payments in cash.  The Costa Brava Term Note, as amended, also requires that SPY North America pay a facility fee equal to 1% of the outstanding principal amount in cash (without giving effect to the Accrued PIK Interest) in June 2014. The Company has approximately $17,000 in accrued expenses and other liabilities related to facility fee as of March 31, 2014 and the total facility fee of $70,000 is due in June 2014.  In April 2014, the Costa Brava Term Note was amended to reduce the interest rate from 12% to 7% and to eliminate the facility fee, both of which are effective July 1, 2014. Effective with the amendment, the Company will no longer add Accrued PIK Interest to the outstanding principal and will begin making quarterly cash payments starting in June 2014.
	During the term of the Costa Brava Term Note, Costa Brava may, at its discretion, convert up to $2,250,000 of the principal amount of the Costa Brava Term Note (excluding the Accrued PIK Interest) into shares of the Company’s common stock at a conversion price of $2.25 per share. In April 2014, the Costa Brava Term Note was amended to increase the amount Costa Brava may convert from $2,250,000 to $6,000,000 and reduce the conversion price from $2.25 to $2.00. (See Note 11 “Related Party Transactions” and Note 14 “Subsequent Events”).
	Costa Brava Line of Credit
	SPY North America has an additional $9.0 million line of credit from Costa Brava (“Costa Brava Line of Credit”) of which $8.5 million was outstanding at March 31, 2014 and December 31, 2013 (excluding Accrued PIK Interest of $2.4 million and $2.1 million, respectively). As of March 31, 2014, approximately $316,000 of accrued interest was reclassified to accrued liabilities and the amount was paid in April 2014. The Costa Brava Line of Credit was amended in April 2014 to extend the maturity date from April 1, 2015 to December 31, 2016. The Costa Brava Line of Credit is subordinate to BFI Line of Credit, pursuant to the terms of a debt subordination agreement between Costa Brava and BFI.
	Interest on the outstanding borrowings under the Costa Brava Line of Credit accrues daily at a rate equal to 12% per annum.  On January 1, 2012, SPY North America began paying monthly interest payments in kind, as an addition to the outstanding principal amount due, rather than making interest payments in cash.  Monthly interest accrued prior to January 1, 2012 was paid in cash. In April 2014, the Costa Brava Line of Credit was amended to reduce the interest rate from 12% to 7% and to eliminate the facility fee, both of which are effective July 1, 2014. Effective with the amendment, the Company will no longer add Accrued PIK Interest to the outstanding principal and will begin making quarterly cash payments starting in June 2014.
	In addition, the Costa Brava Line of Credit, as amended, requires that SPY North America pay a facility fee in June 2014 calculated as the lesser of (i) 1% of the average daily outstanding principal amount owed under the note (excluding Accrued PIK Interest) for the 365 day period ending on such payment date or (ii) $90,000.  The Company has approximately $66,000 in accrued expenses and other liabilities related to facility fee as of March 31, 2014 and the total facility fee of $85,000 is due in June 2014.
	Costa Brava Loans
	The total outstanding borrowings under all credit facilities entered into with Costa Brava at March 31, 2014 and December 31, 2013 was $15.5 million (excluding $4.8 million and $4.2 million of Accrued PIK Interest, respectively).  The Costa Brava Term Loan and Costa Brava Line of Credit are pari passu with respect to the rights and preferences of the Harlingwood Notes (defined below).
	Harlingwood Convertible Debt
	In 2012, SPY North America entered into convertible note purchase agreements with Harlingwood under which SPY North America issued two promissory notes to Harlingwood in the principal amounts of $1.0 million and $0.5 million (“Harlingwood Notes”).  Total outstanding borrowings under the Harlingwood Notes at each of March 31, 2014 and December 31, 2013 were $1.5 million (excluding Accrued PIK Interest of $0.3 million and $0.2 million, respectively).  As of March 31, 2014, approximately $52,000 of accrued interest was reclassified to accrued liabilities and the amount was paid in April 2014. The Harlingwood Notes were amended in April 2014 to extend the maturity date from April 1, 2015 to December 31, 2016.  The Harlingwood Notes are subordinate to the amounts owed by SPY North America under the BFI Line of Credit, pursuant to the terms of a debt subordination agreement between Harlingwood and BFI.
	The Harlingwood Notes accrue interest at the rate of 12% per annum.
	The $1.0 million promissory note requires a facility fee equal to the lesser of $10,000 or 1% of the average daily outstanding principal amount due under the Harlingwood Notes (without giving effect to the Accrued PIK Interest).   SPY North America paid $20,000 to Harlingwood for initial aggregate facility fees in 2012.  Facility fees are due in advance on the respective anniversary date of the $1.0 million promissory note until maturity.  The $0.5 million promissory note has a facility fee of $10,000. The Company paid $10,000 and $10,000 to Harlingwood in September 2013 and January 2014, respectively related to facility fees on the Harlingwood Notes.
	The principal amount due under the Harlingwood Notes (including Accrued PIK Interest) is convertible into shares of the Company’s common stock at $1.40 per share, subject to adjustment for stock splits or stock dividends.  The Harlingwood Notes contain standard representations, warranties and reporting requirements that are customary for financings of this type, and cross default provisions with respect to the Costa Brava indebtedness.  SPY North America was in compliance with all covenants under the Harlingwood Notes at March 31, 2014. The Harlingwood Notes are pari passu with the respect to the rights and preferences of Costa Brava Term Note and Costa Brava Line of Credit.  (See Note 11 “Related Party Transactions” and Note 14 “Subsequent Events”).
	Long-Term Debt
	Notes payable at March 31, 2014 consist of the following:
		(Thousands)
	Costa Brava Term Loan, as amended (subordinated debt, of which up to $2.25 million is convertible into shares of common stock at a conversion price of $2.25 per share.)  Effective April 30, 2014, up to $6.0 million is convertible into shares of Common Stock at a conversion price of $2.00 per share.
		$	10,579
	Costa Brava Line of Credit (subordinated debt)
			9,137
	Harlingwood Notes (subordinated convertible debt, all of which is convertible into shares of common stock at a conversion price of $1.40 per share )
			1,736
	Secured note payable for vehicle purchases, 4.69% interest rate with monthly payments of $1,400 due through December 2015, secured by vehicles
			28
	Subtotal
			21,480
	Less current portion
			16
	Notes payable, less current portion
		$	21,464

Fair_Value_of_Financial_Instru

Fair Value of Financial Instruments	3 Months Ended
	Mar. 31, 2014
Fair Value Disclosures [Abstract]	'
Fair Value of Financial Instruments	'
	The Company’s financial instruments include cash, accounts receivable and payable, short-term borrowings, accrued liabilities, other short-term liabilities, capital leases, notes payable and related party debt.  The carrying amount of these instruments approximates fair value because of their short-term nature.  The carrying value of the Company’s long-term debt, including the current portion approximates fair value as of March 31, 2014.

ShareBased_Compensation

Share-Based Compensation	3 Months Ended
	Mar. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]	'
Share-Based Compensation	'
	Stock Option Activity	Shares		Weighted-			Weighted-		Aggregate
				Average			Average		Intrinsic
				Exercise			Remaining		Value
				Price			Contractual
							Term
							(years)
									(Thousands)
	Options outstanding at December 31, 2013		3,090,801	$	1.76
	Granted		110,000		1.39
	Exercised		-120,000		0.81
	Expired		-29,167		1.07
	Forfeited		-		-
	Options outstanding at March 31, 2014		3,051,634	$	1.79			7.01	$	335
	Options exercisable at March 31, 2014		1,994,147	$	2.02			5.98	$	235
	Intrinsic value is defined as the difference between the relevant current market value of the Company’s common stock and the grant price for options with exercise prices less than the market values on such dates.  During the three months ended March 31, 2014, there were 120,000 stock options exercised.  The Company received cash proceeds of $97,600 related to the stock options exercised in 2014. No options were exercised during the three months ended March 31, 2013.
	The weighted-average estimated fair value of employee stock options granted during the three months ended March 31, 2014 and 2013 was $0.86 and $0.90, respectively.
	Restricted Stock Award Activity
	The Company periodically issues restricted stock awards to certain directors and key employees, subject to certain vesting requirements based on future service.  Fair value is calculated using the Black-Scholes option-pricing valuation model (single option approach).  There were no restricted stock awards issued during the three months ended March 31, 2014. However, the Company awarded 19,161 fully vested, non-restricted shares at a $1.37 weighted-average grant date fair value during the three months ended March 31, 2014.  These shares were issued to certain members of the Company’s board of directors in lieu of cash payment for quarterly board fees.  The expense related to these shares was $26,250 during the three months ended March 31, 2014, and was recorded in general and administrative expense.
	The Company recognized the following share-based compensation expense during the three months ended March 31, 2014 and 2013:
		Three Months Ended
		March 31,
		2014			2013
		(Thousands)
	Stock options
	General and administrative expense	$	99		$	119
	Cost of sales		5			5
	Selling and marketing		34			38
	Shipping and warehouse		1			1
	Research and development		3			3
	Total share-based compensation for stock options		142			166
	Restricted stock
	General and administrative expense (Board of Directors fees in lieu of cash payments)		26			26
	Total share-based compensation for restricted stock		26			26
	Total Share-based compensation expense	$	168		$	192
	Total unrecognized share-based compensation expense for outstanding stock option awards at March 31, 2014 is approximately $0.5 million, which will be recognized over a weighted average remaining life of 1.7 years.

Related_Party_Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2014
Related Party Transactions [Abstract]	'
Related Party Transactions	'
	Promissory Notes with Shareholder, Costa Brava
	See Note 8 “Long-Term Debt” to the Consolidated Financial Statements regarding promissory notes held by Costa Brava, an entity that owned, at March 31, 2014, approximately 47.6%, or 51.3% on an as converted basis, of the Company’s common stock.  The Chairman of the Company’s Board of Directors, Seth Hamot, is the President and sole member of Roark, Rearden & Hamot, LLC, which is the sole general partner of Costa Brava.
	The total outstanding borrowings under all promissory notes the Company has entered into with Costa Brava at March 31, 2014 and December 31, 2013 was $20.3 million (including $4.8 million Accrued PIK Interest) and $19.7 million (including $4.2 million Accrued PIK Interest), respectively.
	Convertible Notes with Shareholder, Harlingwood
	See Note 8, “Long-Term Debt” to the Consolidated Financial Statements regarding $1.5 million in total promissory notes held by Harlingwood, an entity that owned, at March 31, 2014, approximately 5.3%, or 13.6% on an as converted basis, of the Company’s common stock.  Mr. Fir Geenen, a member of the Company’s Board of Directors, is the manager of a limited liability company that manages Harlingwood.
	The total outstanding borrowings under all promissory notes issued by the Company to Harlingwood at March 31, 2014 and December 31, 2013 was $1.8 million (including $0.3 million Accrued PIK Interest) and $1.7 million (including less than $0.2 million Accrued PIK Interest), respectively.

Commitments_and_Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2014
Commitments and Contingencies Disclosure [Abstract]	'
Commitments and Contingencies	'
	Operating Leases
	The Company’s corporate headquarters totals 32,551 square feet and is located in Carlsbad, California.  Effective November 2010, the Company entered into an amended lease for this facility with average monthly rent payments of approximately $29,000 per month.  In April 2013, the Company amended this lease to (i) extend the expiration date to December 31, 2019, and (ii) give the Company the right to terminate the lease commencing on April 1, 2015 with nine-months written notice.  The monthly rent payments after 2014 will increase by 3% per year. The Company also leases approximately 6,500 square feet of a facility in Varese, Italy with monthly lease payments effective March 2013 of €1,500 per month. On March 10, 2014, the Company elected to terminate its lease in Italy, effective September 10, 2014. In addition, the Company leases an office space totaling approximately 400 square feet in Vancouver, Canada at a monthly rate of CAD$1,352 (approximately $1,312).  The Company also leases certain computer equipment and vehicles.
	Total rent expense was approximately $106,000 and $105,000 for the three months ended March 31, 2014 and 2013, respectively.
	Future minimum rental payments required under operating leases that have initial or remaining non-cancelable lease terms in excess of one year are as follows:
		(Thousands)
	Year Ending December 31,
	2014	$	326
	2015		393
	2016		398
	2017		409
	2018		420
	Thereafter		411
	Total	$	2,357
	Capital Leases
	Future minimum lease payments under capital leases at March 31, 2014 are as follows:
		(Thousands)
	Year Ending December 31,
	2014	$	57
	2015		76
	2016		23
	Total minimum lease payments		156
	Amount representing interest		-10
	Present value of minimum lease payments		146
	Less current portion		71
	Noncurrent portion	$	75
	Athlete Contracts
	At March 31, 2014, the Company has entered into endorsement contracts with certain athletes to actively wear and endorse the Company’s products.  Payments under these contracts total approximately $258,000, $145,000 and $83,000 in 2014, 2015 and 2016, respectively, and may include additional performance-based incentives and/or product-specific sales incentives.  At March 31, 2014, the Company also had pending endorsement contracts with certain athletes to actively wear and endorse the Company’s products, with payments totaling approximately $547,000.
	Litigation
	From time to time the Company may be party to lawsuits in the ordinary course of business.  The Company is not currently a party to any material legal proceedings, which it believes will have a material adverse impact on its financial position.

Operating_Segments_and_Geograp

Operating Segments and Geographic Information	3 Months Ended
	Mar. 31, 2014
Segment Reporting [Abstract]	'
Operating Segments and Geographic Information	'
	Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the Company’s management in deciding how to allocate resources and in assessing performance.  The Company designs, produces and distributes sunglasses, snow and motocross goggles, prescription frames, and branded apparel and accessories for the action sports, snow sports and lifestyle markets.
	The Company markets its products in North America and internationally.  Revenue is attributed to the location to which the product is shipped.  Beginning on January 1, 2013, substantially all sales to international customers were made by SPY North America.  During and prior to 2012, substantially all sales to international customers were made by SPY Europe.  Identifiable assets are based on location of domicile:
		North America		International (Europe,		Consolidated
		(U.S. and		Asia Pacific
		Canada)		And Latin
				America)
		(Thousands)		(Thousands)		(Thousands)
		Three Months Ended
		31-Mar-14
	Net sales	$	7,982	$	1,210	$	9,192
		Three Months Ended
		31-Mar-13
	Net sales	$	8,209	$	799	$	9,008
		31-Mar-14		31-Dec-13
		(Thousands)
	Tangible long-lived assets:
	U.S. and Canada	$	394	$	438
	Europe and Asia Pacific		—		—
	Total	$	394	$	438

Subsequent_Events

Subsequent Events	3 Months Ended
	Mar. 31, 2014
Subsequent Events [Abstract]	'
Subsequent Events	'
	In April 2014, the Costa Brava Term Note, Costa Brava Line of Credit and Harlingwood Notes were amended to extend the respective maturity dates from April 1, 2015 to December 31, 2016 (See Note 8 “Long-term Debt”).  Additionally, the interest rates on the Costa Brava Term Note and Costa Brava Line of Credit were reduced from 12% to 7%, and the facility fees were eliminated, effective July 1, 2014. The Costa Brava Term Note was also amended to increase the amount that Costa Brava may, at its discretion, convert (excluding the Accrued PIK Interest) into shares of the Company’s common stock from $2,250,000 to $6,000,000 and to reduce the conversion price from $2.25 to $2.00. Effective with the Costa Brava Term Note and Costa Brava Line of Credit, the Company will no longer add Accrued PIK Interest to the outstanding principal and will begin making quarterly cash payments starting in June 2014.

Basis_of_Presentation_and_Rece1

Basis of Presentation and Recently Issued Accounting Principles (Policies)	3 Months Ended
	Mar. 31, 2014
Accounting Policies [Abstract]	'
Basis of Presentation	'
	Basis of Presentation
	The accompanying Consolidated Financial Statements of SPY Inc. and its wholly owned subsidiaries have been prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States.  In the opinion of management, the Consolidated Financial Statements contain all adjustments, consisting of normal recurring items, considered necessary for a fair presentation of the Company’s financial position, results of operations and cash flows.  The Consolidated Financial Statements contained in this Form 10-Q should be read in conjunction with the Consolidated Financial Statements contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2013.
Recently Issued Accounting Principles	'
	Recently Issued Accounting Principles
	There are no recently issued accounting principles subsequent to the Company’s disclosure in the Annual Report on Form 10-K for the year ended December 31, 2013, which would have a significant impact on the Company’s Consolidated Financial Statements.

Loss_per_Share_Tables

Loss per Share (Tables)	3 Months Ended
	Mar. 31, 2014
Net loss per share of Common Stock	'
Calculation of diluted loss per share	'
	The following table lists the potentially dilutive equity instruments, each convertible into one share of common stock, used in the calculation of diluted loss per share for the periods presented:
		Three Months Ended
		March 31,
		2014		2013
		(Thousands)
	Weighted average common shares outstanding – basic		13,222		13,115
	Assumed conversion of dilutive stock options, warrants and convertible debt		—		—
	Weighted average common shares outstanding – dilutive		13,222		13,115
Excluded antidilutive instruments	'
	The following potentially dilutive instruments were not included in the diluted per share calculation for the periods presented as their inclusion would have been antidilutive:
		Three Months Ended
		March 31,
	Shares Issuable through Exercise or Conversion of:	2014		2013
		(Thousands)
	Stock options		3,052		2,790
	Warrants		244		244
	Convertible debt		2,240		2,133
	Total		5,536		5,167

Accumulated_Other_Comprehensiv1

Accumulated Other Comprehensive Income (Tables)	3 Months Ended
	Mar. 31, 2014
Equity [Abstract]	'
Accumulated other comprehensive income	'
	The components of accumulated other comprehensive income, net of tax, are as follows:
		March 31,		December 31,
		2014		2013
		(Thousands)
	Equity adjustment from foreign currency translation	$	422	$	275
	Unrealized gain on foreign currency exposure of net investment in foreign operations		97		245
	Accumulated other comprehensive income	$	519	$	520

Accounts_Receivable_Tables

Accounts Receivable (Tables)	3 Months Ended
	Mar. 31, 2014
Receivables [Abstract]	'
Accounts receivable	'
	Accounts receivable consisted of the following:
		March 31,		December 31,
		2014		2013
		(Thousands)
	Trade receivables	$	7,810	$	8,539
	Less allowance for doubtful accounts		-332		-369
	Less allowance for returns		-1,856		-1,627
	Accounts receivable, net	$	5,622	$	6,543

Inventories_Tables

Inventories (Tables)	3 Months Ended
	Mar. 31, 2014
Inventory Disclosure [Abstract]	'
Inventories	'
	Inventories consisted of the following:
		March 31,		December 31,
		2014		2013
		(Thousands)
	Raw materials	$	17	$	11
	Finished goods		4,619		6,097
	Less allowance for excess and obsolete inventory		-292		(236)
	Inventories, net	$	4,344	$	5,872

LongTerm_Debt_Tables

Long-Term Debt (Tables)	3 Months Ended
	Mar. 31, 2014
Debt Disclosure [Abstract]	'
Notes payable	'
	Notes payable at March 31, 2014 consist of the following:
		(Thousands)
	Costa Brava Term Loan, as amended (subordinated debt, of which up to $2.25 million is convertible into shares of common stock at a conversion price of $2.25 per share.)  Effective April 30, 2014, up to $6.0 million is convertible into shares of Common Stock at a conversion price of $2.00 per share.
		$	10,579
	Costa Brava Line of Credit (subordinated debt)
			9,137
	Harlingwood Notes (subordinated convertible debt, all of which is convertible into shares of common stock at a conversion price of $1.40 per share )
			1,736
	Secured note payable for vehicle purchases, 4.69% interest rate with monthly payments of $1,400 due through December 2015, secured by vehicles
			28
	Subtotal
			21,480
	Less current portion
			16
	Notes payable, less current portion
		$	21,464

ShareBased_Compensation_Tables

Share-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]	'
Stock Option Activity	'
	Stock Option Activity	Shares		Weighted-			Weighted-		Aggregate
				Average			Average		Intrinsic
				Exercise			Remaining		Value
				Price			Contractual
							Term
							(years)
									(Thousands)
	Options outstanding at December 31, 2013		3,090,801	$	1.76
	Granted		110,000		1.39
	Exercised		-120,000		0.81
	Expired		-29,167		1.07
	Forfeited		-		-
	Options outstanding at March 31, 2014		3,051,634	$	1.79			7.01	$	335
	Options exercisable at March 31, 2014		1,994,147	$	2.02			5.98	$	235
Stock-based compensation expense	'
	The Company recognized the following share-based compensation expense during the three months ended March 31, 2014 and 2013:
		Three Months Ended
		March 31,
		2014			2013
		(Thousands)
	Stock options
	General and administrative expense	$	99		$	119
	Cost of sales		5			5
	Selling and marketing		34			38
	Shipping and warehouse		1			1
	Research and development		3			3
	Total share-based compensation for stock options		142			166
	Restricted stock
	General and administrative expense (Board of Directors fees in lieu of cash payments)		26			26
	Total share-based compensation for restricted stock		26			26
	Total Share-based compensation expense	$	168		$	192

Commitments_and_Contingencies_

Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2014
Commitments and Contingencies Disclosure [Abstract]	'
Future minimum rental payments	'
	Future minimum rental payments required under operating leases that have initial or remaining non-cancelable lease terms in excess of one year are as follows:
		(Thousands)
	Year Ending December 31,
	2014	$	326
	2015		393
	2016		398
	2017		409
	2018		420
	Thereafter		411
	Total	$	2,357
Future minimum lease payments	'
	Future minimum lease payments under capital leases at March 31, 2014 are as follows:
		(Thousands)
	Year Ending December 31,
	2014	$	57
	2015		76
	2016		23
	Total minimum lease payments		156
	Amount representing interest		-10
	Present value of minimum lease payments		146
	Less current portion		71
	Noncurrent portion	$	75

Operating_Segments_and_Geograp1

Operating Segments and Geographic Information (Tables)	3 Months Ended
	Mar. 31, 2014
Segment Reporting [Abstract]	'
Summary of net sales by major geographic region	'
		North America		International (Europe,		Consolidated
		(U.S. and		Asia Pacific
		Canada)		And Latin
				America)
		(Thousands)		(Thousands)		(Thousands)
		Three Months Ended
		31-Mar-14
	Net sales	$	7,982	$	1,210	$	9,192
		Three Months Ended
		31-Mar-13
	Net sales	$	8,209	$	799	$	9,008
Summary of tangible long-lived assets by major geographic region	'
		31-Mar-14		31-Dec-13
		(Thousands)
	Tangible long-lived assets:
	U.S. and Canada	$	394	$	438
	Europe and Asia Pacific		—		—
	Total	$	394	$	438

Description_of_Business_and_Li1

Description of Business and Liquidity (Details Narrative) (USD $)	Mar. 31, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Maximum principal amount available under its credit facilities	$23,900	$25,700
Costa Brava [Member]	'	'
Aggregate original principal borrowings	15,500	'
Unpaid interest	4,800	'
Harlingwood Note [Member]	'	'
Aggregate original principal borrowings	1,500	'
Unpaid interest	$300	'

Loss_Per_Share_Details

Loss Per Share (Details)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Calculation of diluted earnings per share	'	'
Weighted average common shares outstanding - basic	13,222,000	13,115,000
Assumed conversion of dilutive stock options, warrants and convertible debt	'	'
Weighted average common shares outstanding - dilutive	13,222,000	13,115,000

Loss_Per_Share_Details_1

Loss Per Share (Details 1)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Antidilutive securities excluded from computation of Earnings Per Share	5,536	5,167
Stock Options [Member]	'	'
Antidilutive securities excluded from computation of Earnings Per Share	3,052	2,790
Warrants [Member]	'	'
Antidilutive securities excluded from computation of Earnings Per Share	244	244
Convertible Debt [Member]	'	'
Antidilutive securities excluded from computation of Earnings Per Share	2,240	2,133

Accumulated_Other_Comprehensiv2

Accumulated Other Comprehensive Income (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Components of accumulated other comprehensive income, net of tax	'	'
Equity adjustment from foreign currency translation	$422	$275
Unrealized gain on foreign currency exposure of net investment in foreign operations	97	245
Accumulated other comprehensive income	$519	$520

Accounts_Receivable_Details

Accounts Receivable (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Accounts receivable	'	'
Trade receivables	$7,810	$8,539
Less allowance for doubtful accounts	-332	-369
Less allowance for returns	-1,856	-1,627
Accounts receivable, net	$5,622	$6,543

Inventories_Details

Inventories (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Inventories	'	'
Raw materials	$17	$11
Finished goods	4,619	6,097
Less allowance for excess and obsolete inventory	-292	-236
Inventories, net	$4,344	$5,872

Shortterm_Debt_Details_Narrati

Short-term Debt (Details Narrative) (USD $)	Mar. 31, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Line of Credit Facility [Line Items]	'	'
Outstanding borrowings	$20,300	$19,700
Maximum Borrowing Rate Accounts Receivable [Member]	'	'
Line of Credit Facility [Line Items]	'	'
Borrowing available rate by account	50.00%	'
Inventory Borrowing Limit 1 [Member]	'	'
Line of Credit Facility [Line Items]	'	'
Inventory Borrowing maximum	2,500	'
Inventory Borrowing Limit 2 [Member]	'	'
Line of Credit Facility [Line Items]	'	'
Inventory Borrowing maximum	400	'
BFI [Member]	'	'
Line of Credit Facility [Line Items]	'	'
Maximum borrowing limit	7,000	'
Maximum availability	5,200	5,100
Outstanding borrowings	1,700	4,000
Remaining unused borrowing availability	3,500	1,100
Minimum monthly interest charge	2	'
Maximum other indebtedness pursuant to Line of Credit agreement	$100	'
Interest rate	5.00%	'
US Accounts Receivable [Member]	'	'
Line of Credit Facility [Line Items]	'	'
Borrowing available rate by account	80.00%	'
Canada Accounts Receivable [Member]	'	'
Line of Credit Facility [Line Items]	'	'
Borrowing available rate by account	80.00%	'
Inventories [Member]	'	'
Line of Credit Facility [Line Items]	'	'
Borrowing available rate by account	50.00%	'

LongTerm_Debt_Details

Long-Term Debt (Details) (USD $)	Mar. 31, 2014
In Thousands, unless otherwise specified
Notes payable	'
Secured note payable for vehicle purchases, 4.69% interest rate with monthly payments of $1,400 due through December 2015, secured by vehicles	$28
Subtotal	21,480
Less current portion	16
Notes payable, less current portion	21,464
Costa Brava Term Loan [Member]	'
Notes payable	'
Subordinated convertible debt	10,579
Line of Credit (subordinated debt)	9,137
Harlingwood Note [Member]	'
Notes payable	'
Subordinated convertible debt	$1,736

Longterm_Debt_Details_Narrativ

Long-term Debt (Details Narrative) (USD $)

3 Months Ended

1 Months Ended

3 Months Ended

12 Months Ended

3 Months Ended

12 Months Ended

3 Months Ended

12 Months Ended

3 Months Ended

12 Months Ended

In Thousands, except Per Share data, unless otherwise specified

Mar. 31, 2014

Mar. 31, 2013

Dec. 31, 2013

Apr. 30, 2014

Mar. 31, 2014

Dec. 31, 2013

Mar. 31, 2014

Dec. 31, 2013

Apr. 30, 2014

Mar. 31, 2014

Dec. 31, 2013

Mar. 31, 2014

Apr. 30, 2014

Apr. 30, 2014

Mar. 31, 2014

Dec. 31, 2014

Dec. 31, 2013

Costa Brava Note [Member]

Costa Brava Note [Member]

Costa Brava Note [Member]

Costa Brava LOC [Member]

Costa Brava LOC [Member]

Costa Brava LOC [Member]

Harlingwood Note [Member]

Harlingwood Note [Member]

Harlingwood Note 2 [Member]

Costa Brava Term Loan [Member]

Harlingwood [Member]

Harlingwood [Member]

Costa Brava [Member]

Costa Brava [Member]

Debt Instrument [Line Items]

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Promissory note

'

'

'

'

$7,000

$7,000

'

'

'

$1,000

'

$500

'

'

'

'

'

Excluded PIK interest

632

569

'

'

2,400

2,100

2,400

2,100

'

300

200

'

'

'

'

4,800

4,200

Accrued interest reclassified to accrued liabilities

'

'

'

'

264

'

316

'

'

52

'

'

'

'

'

'

'

Interest rate

'

'

'

12.00%

7.00%

'

7.00%

'

12.00%

7.00%

'

7.00%

12.00%

12.00%

'

'

'

Interest rate paid in cash

'

'

'

'

9.00%

'

'

'

'

'

'

'

'

'

'

'

'

Interest rate paid in kind

'

'

'

'

3.00%

'

'

'

'

'

'

'

'

'

'

'

'

Accrued expenses and other liabilities related to facility fee

'

'

'

'

17

'

66

'

'

'

'

'

'

'

'

'

'

Converted Principal amount of promissery note

'

'

'

6,000

2,250

'

'

'

'

'

'

'

'

'

'

'

'

Common stock conversion price

'

'

'

$2

$2.25

'

'

'

'

$1.40

'

$1.40

'

'

'

'

'

Percentage of ownership by shareholder, on converted basis

'

'

'

'

51.30%

'

'

'

'

'

'

'

'

'

13.60%

'

'

Total borrowing of line of credit

15,500

'

15,500

'

'

'

8,500

8,500

'

'

'

'

'

'

'

'

'

Agreed facility fee maximum

'

'

'

'

70

'

90

'

'

10

'

10

'

'

'

'

'

Actual facility fees

'

'

'

'

'

'

$85

'

'

$20

'

$10

'

'

'

'

'

ShareBased_Compensation_Detail

Share-Based Compensation (Details) (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2014
Stock Option Activity	'
Stock options outstanding, Beginning balance	3,090,801
Stock options, Shares, Granted	110,000
Stock options, Shares, Exercised	-120,000
Stock options, Shares, Expired	-29,167
Stock options, Shares, Forfeited	'
Stock options outstanding, Ending balance	3,051,634
Stock options exercisable	1,994,147
Weighted Average Exercise Price, Stock options outstanding, Beginning balance	$1.76
Stock options Granted, Weighted Average Exercise Price	$1.39
Stock options Exercised, Weighted Average Exercise Price	$0.81
Stock options Expired, Weighted Average Exercise Price	$1.07
Stock options Forfeited, Weighted Average Exercise Price	'
Weighted Average Exercise Price, Stock options outstanding, Ending balance	$1.79
Stock options Exercised, Weighted Average Exercise Price	$2.02
Stock options outstanding, Weighted Average Remaining Contractual Term	'7 years 3 days
Stock options exercisable, Weighted Average Remaining Contractual Term	'5 years 11 months 23 days
Stock options outstanding, Aggregate Intrinsic Value	$335
Stock options exercisable, Aggregate Intrinsic Value	$235

ShareBased_Compensation_Detail1

Share-Based Compensation (Details 1) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Shipping and warehousing	$140,000	$169,000
Research and development	153,000	102,000
Total Share-based compensation expense	168,000	192,000
Restricted Stock [Member]	'	'
General and administrative	26,000	26,000
Total Share-based compensation expense	26,000	26,000
Stock Option [Member]	'	'
General and administrative	99,000	119,000
Cost of sales	5,000	5,000
Selling and marketing	34,000	38,000
Shipping and warehousing	1,000	1,000
Research and development	$3,000	$3,000

ShareBased_Compensation_Detail2

Share-Based Compensation (Details Narrative) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Cash proceeds from the exercise of stock options	$98,000	'
Share-based compensation expense	168,000	192,000
Unrecognized share-based compensation expense	500,000	'
Stock Option [Member]	'	'
Options Exercised	120,000	'
Cash proceeds from the exercise of stock options	97,600	'
Weighted-average grant date fair value	$0.86	$0.90
Weighted average remaining life share-based compensation expense	'1 year 8 months 12 days	'
Restricted Stock [Member]	'	'
Weighted-average grant date fair value	$1.37	'
Share-based compensation expense	$26,250	'

Related_Party_Transactions_Det

Related Party Transactions (Details Narrative) (USD $)	Mar. 31, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Related Party Transactions (Textual) [Abstract]	'	'
Outstanding borrowings of promissory notes	$20,300	$19,700
Accrued Interest	4,800	4,200
Costa Brava Note [Member]	'	'
Related Party Transactions (Textual) [Abstract]	'	'
Percentage of Common stock owned	47.60%	'
Percentage of Common stock owned on converted basis	51.30%	'
Harlingwood [Member]	'	'
Related Party Transactions (Textual) [Abstract]	'	'
Percentage of Common stock owned	5.30%	'
Percentage of Common stock owned on converted basis	13.60%	'
Outstanding borrowings of promissory notes	1,800	1,700
Accrued Interest	300	200
Long-term Debt	$1,500	'

Commitments_and_Contingencies_1

Commitments and Contingencies (Details) (USD $)	Mar. 31, 2014
In Thousands, unless otherwise specified
Commitments and Contingencies Disclosure [Abstract]	'
2014 remaining payments	$326
2015	393
2016	398
2017	409
2018	420
Thereafter	411
Total	$2,357

Commitments_and_Contingencies_2

Commitments and Contingencies (Details 1) (USD $)	Mar. 31, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Year Ending December 31,	'	'
2014 remaining payments	$57	'
2015	76	'
2016	23	'
Total minimum lease payments	156	'
Amount representing interest	-10	'
Present value of minimum lease payments	146	'
Less current portion	71	77
Noncurrent portion	$75	$92

Commitments_and_Contingencies_3

Commitments and Contingencies (Details Narrative)	3 Months Ended	6 Months Ended			3 Months Ended
	Mar. 31, 2014	Jun. 30, 2012	Mar. 31, 2014	Mar. 31, 2014	Mar. 31, 2014	Mar. 31, 2014	Mar. 31, 2014
	USD ($)	USD ($)	Endorsement [Member]	Endorsement 2 [Member]	CA Headquarters [Member]	Italy Euro [Member]	Canada CA Dollars [Member]
			USD ($)	USD ($)	USD ($)	EUR (€)	CAD
Commitments and contingencies (Textual) [Abstract]	'	'	'	'	'	'	'
Monthly rent payments	'	'	'	'	$29,000	€ 1,500	1,352
Total rent expense	106,000	105,000	'	'	'	'	'
Minimum annual contracts payments due in 2014	'	'	258,000	547,000	'	'	'
Minimum annual contracts payments due in 2015	'	'	145,000	'	'	'	'
Minimum annual contracts payments due in 2016	'	'	$83,000	'	'	'	'

Operating_Segments_and_Geograp2

Operating Segments and Geographic Information (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Geographic Areas, Revenues from External Customers	'	'
Net sales	$9,192	$9,008
US and Canada [Member]	'	'
Geographic Areas, Revenues from External Customers	'	'
Net sales	7,982	'
EuropeAndAsiaPacific [Member]	'	'
Geographic Areas, Revenues from External Customers	'	'
Net sales	1,210	799
US and Canada [Member]	'	'
Geographic Areas, Revenues from External Customers	'	'
Net sales	'	$8,209

Operating_Segments_and_Geograp3

Operating Segments and Geographic Information (Details 1) (USD $)	Mar. 31, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Summary of tangible long-lived assets by major geographic region	'	'
Tangible long-lived assets, United States and Canada	$394	$438
Tangible long-lived assets, Europe and Asia Pacific	'	'
Tangible long-lived assets	$394	$438

SUBSEQUENT_EVENTS_Details_Narr

SUBSEQUENT EVENTS (Details Narrative) (USD $)	1 Months Ended	3 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Apr. 30, 2014	Mar. 31, 2014
Costa Brava Term Loan [Member]	'	'
Interest rate	'	7.00%
Costa Brava Note [Member]	'	'
Interest rate	12.00%	7.00%
Converted Principal amount of promissery note	$6,000	$2,250
Common stock conversion price	$2	$2.25
Costa Brava LOC [Member]	'	'
Interest rate	12.00%	7.00%
Costa Brava Term Loan [Member]	'	'
Interest rate	12.00%	'
Harlingwood [Member]	'	'
Interest rate	12.00%	'
Harlingwood Note [Member]	'	'
Interest rate	'	7.00%
Common stock conversion price	'	$1.40