Spy (XSPY) 10-Q 5 Nov 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Oct. 30, 2015
Document And Entity Information
Entity Registrant Name	Spy Inc.
Trading Symbol	XSPY
Entity Central Index Key	932,372
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
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 Common Stock, Shares Outstanding		13,501,634
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,015

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Current assets
Cash	$ 241	$ 351
Accounts receivable, net	5,571	7,171
Inventories, net	8,386	7,697
Prepaid expenses and other current assets	1,003	796
Total current assets	15,201	16,015
Property and equipment, net	629	509
Intangible assets, net of accumulated amortization of $830 and $818 at September 30, 2015 and December 31, 2014, respectively	24	37
Other assets	6	44
Total assets	15,860	16,605
Current liabilities
Lines of credit	6,463	6,775
Current portion of capital leases	16	73
Current portion of notes payable	24	16
Accounts payable	2,397	1,216
Accrued expenses and other liabilities	3,812	3,910
Total current liabilities	$ 12,712	11,990
Capital leases, less current portion		$ 22
Notes payable, less current portion	$ 55
Note payable to stockholders	21,524	$ 21,568
Total liabilities	$ 34,291	$ 33,580
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; 13,466,339 and 13,392,293 shares issued and outstanding at September 30, 2015 and December 31, 2014, respectively	$ 1	$ 1
Additional paid-in-capital	46,339	46,043
Accumulated other comprehensive income	413	450
Accumulated deficit	(65,184)	(63,469)
Total stockholders' deficit	(18,431)	(16,975)
Total liabilities and stockholders' deficit	$ 15,860	$ 16,605

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Current assets
Intangible assets, accumulated amortization	$ 830	$ 818
Stockholders' equity (deficit)
Preferred stock, par value	$ .0001	$ 0.0001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued
Common stock, par value	$ .0001	$ 0.0001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	13,466,339	13,392,293
Common stock, shares outstanding	13,466,339	13,392,293

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Income Statement [Abstract]
Net sales	$ 9,370	$ 10,977	$ 26,622	$ 28,353
Cost of sales	5,273	5,579	13,500	13,632
Gross profit	4,097	5,398	13,122	14,721
Operating expenses:
Sales and marketing	2,515	3,071	8,344	8,717
General and administrative	1,424	1,417	3,902	4,287
Shipping and warehousing	141	145	384	418
Research and development	139	172	464	521
Total operating expenses	4,219	4,805	13,094	13,943
Income (loss) from operations	(122)	593	28	778
Other income (expense):
Interest expense	(501)	(494)	(1,479)	(2,004)
Foreign currency transaction gain (loss)	$ (165)	(108)	(264)	(106)
Other income (expense)		(10)	2	(169)
Total other expense	$ (666)	(612)	(1,741)	(2,279)
Loss before provision for income taxes	$ (788)	$ (19)	(1,713)	(1,501)
Income tax expense			2	3
Net loss	$ (788)	$ (19)	$ (1,715)	$ (1,504)
Net loss per share of Common Stock
Net loss per share of Common Stock - basic and diluted	$ (0.06)	$ 0	$ (0.13)	$ (0.11)
Shares used in computing basic and diluted net loss per share
Shares used in computing basic and diluted net loss per share	13,466	13,373	13,436	13,312
Other comprehensive income (loss)
Foreign currency translation adjustment	$ (67)	$ (51)	$ 400	$ (238)
Unrealized gain (loss) on foreign currency exposure of net investment in foreign operations	71	9	(437)	190
Total other comprehensive income (loss)	4	(42)	(37)	(48)
Comprehensive loss	$ (784)	$ (61)	$ (1,752)	$ (1,552)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Operating Activities
Net loss	$ (1,715)	$ (1,504)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	249	203
Share-based compensation	253	419
Non-cash board of directors fees	45	62
Provision for doubtful accounts	(7)	34
Gain on disposal of property or equipment	(51)	(3)
Foreign currency transaction gain	$ (38)	(48)
Loss on extinguishment of debt		155
Amortization of debt discount and premium	$ (44)	26
Change in operating assets and liabilities:
Accounts receivable, net	1,606	(19)
Inventories, net	(689)	(1,658)
Prepaid expenses and other current assets	(207)	(24)
Other assets	38	13
Accounts payable	1,181	1,160
Accrued expenses and other liabilities	$ (98)	1,128
Income taxes receivable		3
Net cash provided by (used in) operating activities	$ 523	(53)
Investing Activities
Purchases of property and equipment	$ (263)	(174)
Proceeds from sale of property and equipment		16
Net cash used in investing activities	$ (263)	(158)
Financing Activities
Line of credit, net	(312)	371
Principal payments on secured notes payable	(30)	(10)
Principal payments on capital leases	$ (28)	(57)
Proceeds from exercise of stock options		115
Net cash (used in) provided by financing activities	$ (370)	419
Net (decrease) increase in cash	(110)	208
Cash at beginning of period	351	686
Cash at end of period	241	894
Cash paid during the period for:
Interest	1,514	1,963
Income taxes	$ 2	$ 3

Description of Business and Liq

Description of Business and Liquidity	9 Months Ended
	Sep. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business and Liquidity	1. Description of Business and Liquidity Description of Business SPY Inc. (the “ Company ® 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 SPY EUROPE Capital Resources During the nine months ended September 30, 2015, the Company had positive cash flow from operations principally due to timing of working capital purchases and higher collections on accounts receivable. Although the Company had income from operations during the nine months ended September 30, 2015 and year ended December 31, 2014, the Company has a history of incurring significant negative cash flow from operations, 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 BFI Line of Credit Costa Brava Harlingwood Short-Term Debt “Long-Term Debt” “Related Party Transactions” 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 sales growth, (ii) continue the improvements in the management of working capital, and (iii) continue to manage and operate the Company at appropriate levels of sales, marketing, general and administrative, and other operating expenses in relation to overall sales. 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) if necessary, continue discretionary deferral of interest payments otherwise payable to Harlingwood, and (iii) if necessary, raise additional capital through debt or equity financings, or borrow up to the extent available on the Company’s Costa Brava Line of Credit. 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 2016, and the borrowings from Costa Brava and Harlingwood due, as amended, on December 31, 2016, consisting of $19.8 million in borrowings from Costa Brava and $1.7 million in borrowings from Harlingwood as of September 30, 2015. The Company will therefore need to renew the BFI Line of Credit at its annual renewal in February 2016 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 Recen

Basis of Presentation and Recently Issued Accounting Principles	9 Months Ended
	Sep. 30, 2015
Accounting Policies [Abstract]
Basis of Presentation and Recently Issued Accounting Principles	2. 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 Recently Issued Accounting Principles In 2014, the Financial Accounting Standards Board (“ FASB ASU In July 2015, FASB issued ASU No. 2015-11, Inventory – Simplifying the Measurement of Inventory,

Loss per Share

Loss per Share	9 Months Ended
	Sep. 30, 2015
Net loss per share of Common Stock
Loss per Share	3. Loss Per Share Basic loss per share is computed by dividing net income or loss by the weighted-average number of common shares outstanding during the period. Diluted loss per share is calculated by including the additional shares of common stock issuable upon exercise of outstanding options and warrants, vesting of restricted stock and the conversion of convertible debt, 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 earnings per share for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (Thousands) (Thousands) Weighted average common shares outstanding – basic 13,466 13,373 13,436 13,312 Assumed conversion of dilutive stock options, warrants and convertible debt — — — — Weighted average common shares outstanding – dilutive 13,466 13,373 13,436 13,312 The following potentially dilutive instruments were not included in the diluted per share calculation for periods presented as their inclusion would have been antidilutive: Three Months Ended September 30, Nine Months Ended September 30, Shares Issuable through Exercise or Conversion of: 2015 2014 2015 2014 (Thousands) (Thousands) Stock options 3,176 3,234 3,176 3,234 Warrants 244 244 244 244 Convertible debt 4,240 4,240 4,240 4,240 Total 7,660 7,718 7,660 7,718

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income	9 Months Ended
	Sep. 30, 2015
Equity [Abstract]
Accumulated Other Comprehensive Income	4. 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: September 30, 2015 December 31, 2014 (Thousands) Equity adjustment from foreign currency translation $ 1,378 $ 977 Unrealized loss on foreign currency exposure of net investment in foreign operations (965 ) (527 ) Accumulated other comprehensive income $ 413 $ 450

Accounts Receivable

Accounts Receivable	9 Months Ended
	Sep. 30, 2015
Receivables [Abstract]
Accounts Receivable	5. Accounts Receivable Accounts receivable consisted of the following: September 30, 2015 December 31, 2014 (Thousands) Trade receivables $ 7,962 $ 9,477 Less: allowance for doubtful accounts (284 ) (290 ) Less: allowance for returns (2,107 ) (2,016 ) Accounts receivable, net $ 5,571 $ 7,171

Inventories

Inventories	9 Months Ended
	Sep. 30, 2015
Inventory Disclosure [Abstract]
Inventories	6. Inventories Inventories consisted of the following: September 30, 2015 December 31, 2014 (Thousands) Raw materials $ 38 $ 114 Finished goods 8,619 7,796 Less: allowance for excess and obsolete inventory (271 ) (213 ) Inventories, net $ 8,386 $ 7,697

Short-Term Debt

Short-Term Debt	9 Months Ended
	Sep. 30, 2015
Debt Disclosure [Abstract]
Short-Term Debt	7. Short-Term Debt SPY North America has a Loan and Security Agreement with BFI, originally dated February 26, 2007 and most recently modified on February 19, 2015 (the “ BFI Line of Credit Actual borrowing availability under the BFI Line of Credit is based on eligible trade receivable and inventory levels of SPY North America. Actual borrowings are subject to the following limitations at September 30, 2015: (i) up to 100% of United States and Canadian eligible accounts receivable or 65% of eligible United States inventory, provided, however, such amount does not exceed the maximum inventory borrowing amount of $3.5 million, (ii) advances against eligible foreign accounts receivable (excluding Canadian accounts receivable) up to $0.4 million, and (iii) up to 80% of eligible dating programs. In August 2015, BFI increased the BFI Line of Credit to allow the Company to borrow up to $0.8 million against eligible foreign accounts receivable (excluding Canadian receivables) and up to 85% of all eligible accounts receivable. This increase is only in affect from August 2015 to November 15, 2015 and was done to accommodate the Company’s seasonal working capital needs. Borrowings under the BFI Line of Credit accrue 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 5.00% per annum at September 30, 2015. 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

Long-Term Debt

Long-Term Debt	9 Months Ended
	Sep. 30, 2015
Debt Disclosure [Abstract]
Long-Term Debt	8. 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 Accrued PIK Interest “Related Party Transactions” 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 In addition, the Costa Brava Line of Credit, as amended, required SPY North America to pay a final 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 no accrued expenses and other liabilities related to facility fee as of September 30, 2015 and paid $85,000 for the required facility fee in June 2014. Costa Brava Loans As of September 30, 2015 and December 31, 2014, the Company had outstanding borrowings of $19.8 million (including $4.2 million Accrued PIK Interest and $0.1 million unamortized debt premium) with Costa Brava. The Costa Brava Term Note 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 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). 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 to Harlingwood in September 2015, September 2014, and December 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 September 30, 2015. The Harlingwood Notes are pari passu with the respect to the rights and preferences of the Costa Brava Term Note and Costa Brava Line of Credit. (See Note 11 “Related Party Transactions” Long-Term Debt Notes payable at September 30, 2015 consist of the following: (Thousands) Costa Brava Term Loan (subordinated debt), 7% interest rate with mandatory quarterly interest payments. $ 9,210 Costa Brava Line of Credit, as amended (subordinated debt, of which up to $6.0 million is convertible into shares of common stock at a conversion price of $2.00 per share and includes $87,053 in unamortized debt premium), 7% interest rate with mandatory quarterly interest payments. 10,578 Harlingwood Notes (subordinated convertible debt, all of which is convertible into shares of common stock at a conversion price of $1.40 per share) 12% interest rate with discretionary Accrued PIK Interest. 1,736 Secured note payable for vehicle purchases, 4.69% interest rate with monthly payments of $1,402 due through December 2015, secured by vehicles. 4 Secured note payable for a vehicle purchase, 11.33% interest rate with monthly payments of $1,769 due through March 2020, secured by vehicle. 75 Subtotal 21,603 Less current portion 24 Notes payable, less current portion $ 21,579

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2015
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	9. Fair Value of Financial Instruments The current Financial Accounting Standards Board guidance provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical instruments (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below: · Level 1 inputs use quoted prices in active markets for identical instruments. · Level 2 inputs use other inputs that are observable, either directly or indirectly. These Level 2 inputs include quoted prices for similar instruments in active markets, and other inputs such as interest rates and yield curves that are observable at commonly quoted intervals. · Level 3 inputs are unobservable inputs, including inputs that are available in situations where there is little, if any, market activity for the related instrument. 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 notes payable. The carrying amount of these instruments approximates fair value because of their short-term nature. The carrying value of the Company’s long term related party notes payable approximates fair value as of September 30, 2015.

Share-Based Compensation

Share-Based Compensation	9 Months Ended
	Sep. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-Based Compensation	10. Share-Based Compensation Stock Option Activity Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (years) Aggregate Intrinsic Value (Thousands) Options outstanding at December 31, 2014 3,139,168 $ 1.56 7.13 $ 3 Granted 190,000 0.78 Exercised — — Expired (65,002 ) 2.56 Forfeited (88,332 ) 0.84 Options outstanding at September 30, 2015 3,175,834 1.51 6.58 — Options exercisable at September 30, 2015 3,122,559 1.61 6.13 — 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 and nine months ended September 30, 2015, there were no stock options exercised. During the three and nine months ended September 30, 2014, there were 6,100 and 139,228 stock options exercised respectively, resulting in cash proceeds to the Company of $5,490 and $114,905 respectively. The weighted-average estimated fair value of employee stock options granted during the nine months ended September 30, 2015 and 2014 was $0.49 and $0.67, 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 nine months ended September 30, 2015. However, the Company awarded 74,046 fully vested, non-restricted shares at a $0.61 weighted-average grant date fair value during the nine months ended September 30, 2015. 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 $45,000 during the nine months ended September 30, 2015, and was recorded in general and administrative expense. The Company recognized the following share-based compensation expense during the three and nine months ended September 30, 2015 and 2014: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (Thousands) (Thousands) Stock options General and administrative expense $ 59 $ 88 $ 174 $ 304 Cost of sales — 2 2 10 Selling and marketing 20 32 72 94 Shipping and warehouse — — — 2 Research and development 2 3 5 9 Total share-based compensation for stock options 81 125 253 419 Restricted stock General and administrative expense (Board of Directors fees in lieu of cash payments) 15 17 45 62 Total share-based compensation for restricted stock 15 17 45 62 Total Share-based compensation expense $ 96 $ 142 $ 298 $ 481 Total unrecognized share-based compensation expense for outstanding stock option awards at September 30, 2015 is approximately $0.3 million, which will be recognized over a weighted average remaining life of 1.26 years.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2015
Related Party Transactions [Abstract]
Related Party Transactions	11. Related Party Transactions Promissory Notes with Shareholder, Costa Brava See Note 8 “ Long-Term Debt As of September 30, 2015 and December 31, 2014, the Company has outstanding borrowings of $19.8 million (including $4.2 million Accrued PIK Interest and $0.1 unamortized debt premium), with Costa Brava. Convertible Notes with Shareholder, Harlingwood See Note 8, “ Long-Term Debt The total outstanding borrowings under all promissory notes issued by the Company to Harlingwood at September 30, 2015 and December 31, 2014 was $1.7 million (including $0.2 million Accrued PIK Interest), respectively.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	12. 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’ notice. In April 2015, the Company delivered notice of its intent to terminate the lease of its current corporate headquarters, and in May 2015, the Company entered into a five-year lease agreement for its new corporate headquarters, which will occupy 47,056 square feet in Carlsbad, California. Monthly base rent for the Company’s new corporate headquarter will be $48,334, which amount is subject to annual increases based on the Company’s annual operating expenses. The Company anticipates taking occupancy of its new corporate headquarters in December 2015. Effective August 2014, the Company entered into a five-year lease agreement to rent approximately 1,200 square feet of office and retail space in Encinitas, California. Monthly base rent is $5,700, subject to annual 3% increases. The Company also leases an office space totaling approximately 400 square feet in Vancouver, Canada at a monthly rate of CAD $1,230 (approximately $917 at September 30, 2015). The Company also leases certain computer equipment and vehicles. Total rent expense was approximately $350,000 and $320,000 for the nine months ended September 30, 2015 and 2014, 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, 2015 $ 129 2016 705 2017 703 2018 703 2019 674 Thereafter 588 Total $ 3,502 Capital Leases Future minimum lease payments under capital leases at September 30, 2015 are as follows: (Thousands) Year Ending December 31, 2015 $ 9 2016 7 Total minimum lease payments 16 Amount representing interest — Present value of minimum lease payments 16 Less current portion (16 ) Long-term portion $ — Athlete Contracts At September 30, 2015, the Company has entered into endorsement contracts with athletes to actively wear and endorse the Company’s products. These contracts are based on minimum payments totaling approximately $167,000 during last quarter of 2015 and $380,000 and $19,000 in 2016 and 2017 respectively, and may include additional performance-based incentives and/or product-specific sales incentives. 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 that could have a material adverse impact on its financial position.

Operating Segments and Geograph

Operating Segments and Geographic Information	9 Months Ended
	Sep. 30, 2015
Segment Reporting [Abstract]
Operating Segments and Geographic Information	13. 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, along with 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. Identifiable assets are based on location of domicile: U.S. and Canada Europe, Asia Pacific and Latin America Consolidated (Thousands) (Thousands) (Thousands) Three Months Ended September 30, 2015 — Net sales $ 7,554 $ 1,816 $ 9,370 Three Months Ended September 30, 2014 — Net sales $ 9,065 $ 1,912 $ 10,977 Nine Months Ended September 30, 2015 — Net sales $ 22,367 $ 4,255 $ 26,622 Nine Months Ended September 30, 2014 — Net sales $ 24,073 $ 4,280 $ 28,353 September 30, 2015 December 31, 2014 (Thousands) Tangible long-lived assets: U.S. and Canada $ 629 $ 509 Europe and Asia Pacific — — Total $ 629 $ 509

Basis of Presentation and Rec19

Basis of Presentation and Recently Issued Accounting Principles (Policies)	9 Months Ended
	Sep. 30, 2015
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
Recently Issued Accounting Principles	Recently Issued Accounting Principles In 2014, the Financial Accounting Standards Board (“ FASB ASU In July 2015, FASB issued ASU No. 2015-11, Inventory – Simplifying the Measurement of Inventory,

Loss per Share (Tables)

Loss per Share (Tables)	9 Months Ended
	Sep. 30, 2015
Net loss per share of Common Stock
Calculation of diluted loss per share	Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (Thousands) (Thousands) Weighted average common shares outstanding – basic 13,466 13,373 13,436 13,312 Assumed conversion of dilutive stock options, warrants and convertible debt — — — — Weighted average common shares outstanding – dilutive 13,466 13,373 13,436 13,312
Excluded antidilutive instruments	Three Months Ended September 30, Nine Months Ended September 30, Shares Issuable through Exercise or Conversion of: 2015 2014 2015 2014 (Thousands) (Thousands) Stock options 3,176 3,234 3,176 3,234 Warrants 244 244 244 244 Convertible debt 4,240 4,240 4,240 4,240 Total 7,660 7,718 7,660 7,718

Accumulated Other Comprehensi21

Accumulated Other Comprehensive Income (Tables)	9 Months Ended
	Sep. 30, 2015
Equity [Abstract]
Accumulated other comprehensive income	September 30, 2015 December 31, 2014 (Thousands) Equity adjustment from foreign currency translation $ 1,378 $ 977 Unrealized loss on foreign currency exposure of net investment in foreign operations (965 ) (527 ) Accumulated other comprehensive income $ 413 $ 450

Accounts Receivable (Tables)

Accounts Receivable (Tables)	9 Months Ended
	Sep. 30, 2015
Receivables [Abstract]
Accounts receivable	September 30, 2015 December 31, 2014 (Thousands) Trade receivables $ 7,962 $ 9,477 Less: allowance for doubtful accounts (284 ) (290 ) Less: allowance for returns (2,107 ) (2,016 ) Accounts receivable, net $ 5,571 $ 7,171

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Sep. 30, 2015
Inventory Disclosure [Abstract]
Inventories	September 30, 2015 December 31, 2014 (Thousands) Raw materials $ 38 $ 114 Finished goods 8,619 7,796 Less: allowance for excess and obsolete inventory (271 ) (213 ) Inventories, net $ 8,386 $ 7,697

Long-Term Debt (Tables)

Long-Term Debt (Tables)	9 Months Ended
	Sep. 30, 2015
Debt Disclosure [Abstract]
Notes payable	(Thousands) Costa Brava Term Loan (subordinated debt), 7% interest rate with mandatory quarterly interest payments. $ 9,210 Costa Brava Line of Credit, as amended (subordinated debt, of which up to $6.0 million is convertible into shares of common stock at a conversion price of $2.00 per share and includes $87,053 in unamortized debt premium), 7% interest rate with mandatory quarterly interest payments. 10,578 Harlingwood Notes (subordinated convertible debt, all of which is convertible into shares of common stock at a conversion price of $1.40 per share) 12% interest rate with discretionary Accrued PIK Interest. 1,736 Secured note payable for vehicle purchases, 4.69% interest rate with monthly payments of $1,402 due through December 2015, secured by vehicles. 4 Secured note payable for a vehicle purchase, 11.33% interest rate with monthly payments of $1,769 due through March 2020, secured by vehicle. 75 Subtotal 21,603 Less current portion 24 Notes payable, less current portion $ 21,579

Share-Based Compensation (Table

Share-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock Option Activity	Stock Option Activity Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (years) Aggregate Intrinsic Value (Thousands) Options outstanding at December 31, 2014 3,139,168 $ 1.56 7.13 $ 3 Granted 190,000 0.78 Exercised — — Expired (65,002 ) 2.56 Forfeited (88,332 ) 0.84 Options outstanding at September 30, 2015 3,175,834 1.51 6.58 — Options exercisable at September 30, 2015 3,122,559 1.61 6.13 —
Stock-based compensation expense	Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (Thousands) (Thousands) Stock options General and administrative expense $ 59 $ 88 $ 174 $ 304 Cost of sales — 2 2 10 Selling and marketing 20 32 72 94 Shipping and warehouse — — — 2 Research and development 2 3 5 9 Total share-based compensation for stock options 81 125 253 419 Restricted stock General and administrative expense (Board of Directors fees in lieu of cash payments) 15 17 45 62 Total share-based compensation for restricted stock 15 17 45 62 Total Share-based compensation expense $ 96 $ 142 $ 298 $ 481

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Future minimum rental payments	(Thousands) Year Ending December 31, 2015 $ 129 2016 705 2017 703 2018 703 2019 674 Thereafter 588 Total $ 3,502
Future minimum lease payments	(Thousands) Year Ending December 31, 2015 $ 9 2016 7 Total minimum lease payments 16 Amount representing interest — Present value of minimum lease payments 16 Less current portion (16 ) Long-term portion $ —

Operating Segments and Geogra27

Operating Segments and Geographic Information (Tables)	9 Months Ended
	Sep. 30, 2015
Segment Reporting [Abstract]
Summary of net sales by major geographic region	U.S. and Canada Europe, Asia Pacific and Latin America Consolidated (Thousands) (Thousands) (Thousands) Three Months Ended September 30, 2015 — Net sales $ 7,554 $ 1,816 $ 9,370 Three Months Ended September 30, 2014 — Net sales $ 9,065 $ 1,912 $ 10,977 Nine Months Ended September 30, 2015 — Net sales $ 22,367 $ 4,255 $ 26,622 Nine Months Ended September 30, 2014 — Net sales $ 24,073 $ 4,280 $ 28,353
Summary of tangible long-lived assets by major geographic region	September 30, 2015 December 31, 2014 (Thousands) Tangible long-lived assets: U.S. and Canada $ 629 $ 509 Europe and Asia Pacific — — Total $ 629 $ 509

Description of Business and L28

Description of Business and Liquidity (Details Narrative) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Negative cash flow from operations	$ 523	$ (53)
Maximum principal amount available under its credit facilities	28,100		$ 28,500
Costa Brava [Member]
Aggregate original principal borrowings	19,800
Harlingwood Note [Member]
Aggregate original principal borrowings	$ 1,700

Loss Per Share (Details)

Loss Per Share (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Calculation of diluted earnings per share
Weighted average common shares outstanding - basic	13,466	13,373	13,436	13,312
Assumed conversion of dilutive stock options, warrants and convertible debt
Weighted average common shares outstanding - dilutive	13,466	13,373	13,463	13,312

Loss Per Share (Details 1)

Loss Per Share (Details 1) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Antidilutive securities excluded from computation of Earnings Per Share, in thousands	7,660,000	7,718,000	7,660,000	7,718,000
Stock Option [Member]
Antidilutive securities excluded from computation of Earnings Per Share, in thousands	3,176,000	3,234,000	3,176,000	3,234,000
Warrants [Member]
Antidilutive securities excluded from computation of Earnings Per Share, in thousands	244,000	244,000	244,000	244,000
Convertible Debt [Member]
Antidilutive securities excluded from computation of Earnings Per Share, in thousands	4,240,000	4,240,000	4,240,000	4,240,000

Accumulated Other Comprehensi31

Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Components of accumulated other comprehensive income, net of tax
Equity adjustment from foreign currency translation	$ 1,378	$ 977
Unrealized loss on foreign currency exposure of net investment in foreign operations	(965)	(527)
Accumulated other comprehensive income	$ 413	$ 450

Accounts Receivable (Details)

Accounts Receivable (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Accounts receivable
Trade receivables	$ 7,962	$ 9,477
Less allowance for doubtful accounts	(284)	(290)
Less allowance for returns	(2,107)	(2,016)
Accounts receivable, net	$ 5,571	$ 7,171

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Inventories
Raw materials	$ 38	$ 114
Finished goods	8,619	7,796
Less allowance for excess and obsolete inventory	(271)	(213)
Inventories, net	$ 8,386	$ 7,697

Short-term Debt (Details Narrat

Short-term Debt (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Line of Credit Facility [Line Items]
Outstanding borrowings	$ 19,800,000	$ 19,800,000
BFI [Member]
Line of Credit Facility [Line Items]
Maximum borrowing limit	7,600,000	8,000,000
Outstanding borrowings	6,400,000	6,800,000
Remaining unused borrowing availability	$ 1,100,000	$ 1,200,000
Borrowing availability	(i) up to 100% of United States and Canadian eligible accounts receivable or 65% of eligible United States inventory, provided, however, such amount does not exceed the maximum inventory borrowing amount of $3.5 million, (ii) advances against eligible foreign accounts receivable (excluding Canadian accounts receivable) up to $0.4 million, and (iii) up to 80% of eligible dating programs.
Interest rate spread on prime	175.00%
Interest rate	500.00%
Maximum other indebtedness pursuant to Line of Credit agreement	$ 100,000
BFI [Member] | MinimumMember
Line of Credit Facility [Line Items]
Monthly interest charge	2,000
BFI [Member] | Accounts Receivable and Inventory [Member] | GeographicDistributionDomesticMember
Line of Credit Facility [Line Items]
Maximum borrowing limit	$ 9,000,000
Maximum borrowing limit, percent	100.00%
BFI [Member] | Accounts Receivable and Inventory [Member] | GeographicDistributionDomesticMember | Maximum [Member]
Line of Credit Facility [Line Items]
Outstanding borrowings	$ 3,500,000
BFI [Member] | Accounts Receivable and Inventory [Member] | GeographicDistributionForeignMember
Line of Credit Facility [Line Items]
Maximum borrowing limit	$ 800,000
Maximum borrowing limit, percent	65.00%
BFI [Member] | Accounts Receivable and Inventory [Member] | GeographicDistributionForeignMember | Maximum [Member]
Line of Credit Facility [Line Items]
Outstanding borrowings	$ 400,000

Long-Term Debt (Details)

Long-Term Debt (Details) $ in Thousands	Sep. 30, 2015USD ($)
Notes payable
Subtotal	$ 21,603
Less current portion	(24)
Notes payable, less current portion	21,579
Costa Brava Debt [Member]
Notes payable
Subordinated debt	9,210
Line of Credit	10,578
Harlingwood Debt [Member]
Notes payable
Subordinated debt	1,736
Secured Note 1 [Member]
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	4
Secured Note 2 [Member]
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	$ 75

Long-term Debt (Details Narrati

Long-term Debt (Details Narrative) - USD ($)	1 Months Ended	9 Months Ended		12 Months Ended
	Apr. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Debt Instrument [Line Items]
Unamortized debt premium		$ 100,000		$ 100,000
Total borrowing of line of credit		1,500,000		19,800,000
Costa Brava Note [Member]
Debt Instrument [Line Items]
Promissory note		7,000,000		7,000,000
PIK interest		2,100,000		2,100,000
Unamortized debt premium		100,000		$ 100,000
Interest paid in cash payments		$ 500,000
Interest rate	12.00%	7.00%		7.00%
Accrued expenses and other liabilities related to facility fee		$ 155,000		$ 155,000
Converted Principal amount of promissery note	$ 6,000,000	$ 2,250,000
Common stock conversion price	$ 2	$ 2.25
Facility fees		$ 35,000
Capitalized debt fees		16,000
Costa Brava LOC [Member]
Debt Instrument [Line Items]
PIK interest		2,100,000		2,100,000
Unamortized debt premium		100,000
Interest paid in cash payments		$ 600,000
Interest rate	12.00%	7.00%
Total borrowing of line of credit		$ 8,500,000		8,500,000
Maximum borrowing capacity of line of credit		9,000,000		9,000,000
Facility fees		85,000
Harlingwood Note [Member]
Debt Instrument [Line Items]
Promissory note		1,000,000
PIK interest		200,000		200,000
Interest paid in cash payments		$ 200,000
Interest rate		12.00%
Common stock conversion price		$ 1.40
Total borrowing of line of credit		$ 1,500,000
Facility fees		10,000	$ 10,000	10,000
Harlingwood Note 2 [Member]
Debt Instrument [Line Items]
Promissory note		500,000
Interest paid in cash payments		$ 100,000
Interest rate		12.00%
Common stock conversion price		$ 1.40
Total borrowing of line of credit		$ 1,500,000
Costa Brava Term Loan [Member]
Debt Instrument [Line Items]
Interest rate	12.00%
Harlingwood [Member]
Debt Instrument [Line Items]
Interest rate	12.00%
Costa Brava [Member]
Debt Instrument [Line Items]
PIK interest		4,200,000		$ 4,200,000
Maximum [Member] | Costa Brava LOC [Member]
Debt Instrument [Line Items]
Facility fees		$ 90,000

Share-Based Compensation (Detai

Share-Based Compensation (Details) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2015USD ($)$ / sharesshares
Stock Option Activity
Stock options outstanding, Beginning balance | shares	3,139,168
Stock options, Shares, Granted | shares	190,000
Stock options, Shares, Exercised | shares
Stock options, Shares, Expired | shares	(65,002)
Stock options, Shares, Forfeited | shares	(88,332)
Stock options outstanding, Ending balance | shares	3,175,834
Stock options exercisable | shares	3,122,559
Weighted Average Exercise Price, Stock options outstanding, Beginning balance	$ 1.56
Stock options Granted, Weighted Average Exercise Price	$ 0.78
Stock options Exercised, Weighted Average Exercise Price
Stock options Expired, Weighted Average Exercise Price	$ 2.56
Stock options Forfeited, Weighted Average Exercise Price	0.84
Weighted Average Exercise Price, Stock options outstanding, Ending balance	1.51
Stock options Exercised, Weighted Average Exercise Price	$ 1.61
Stock options outstanding, Weighted Average Remaining Contractual Term, beginning of period	7 years 1 month 17 days
Stock options outstanding, Weighted Average Remaining Contractual Term	6 years 6 months 19 days
Stock options exercisable, Weighted Average Remaining Contractual Term	6 years 1 month 17 days
Stock options outstanding, Aggregate Intrinsic Value | $	$ 3
Stock options outstanding, Aggregate Intrinsic Value | $
Stock options exercisable, Aggregate Intrinsic Value | $

Share-Based Compensation (Det38

Share-Based Compensation (Details 1) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Total Share-based compensation expense	$ 96	$ 142	$ 298	$ 481
Restricted Stock [Member]
General and administrative	15	17	45	62
Total Share-based compensation expense	15	17	45	62
Stock Option [Member]
General and administrative	$ 59	88	174	304
Cost of sales		2	2	10
Selling and marketing	$ 20	$ 32	$ 72	94
Shipping and warehousing				2
Research and Development	$ 2	$ 3	$ 5	9
Total Share-based compensation expense	$ 81	$ 125	$ 253	$ 419

Share-Based Compensation (Det39

Share-Based Compensation (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Cash proceeds from the exercise of stock options				$ 115,000
Share-based compensation expense	$ 96,000	$ 142,000	$ 298,000	$ 481,000
Unrecognized share-based compensation expense	$ 300,000		$ 300,000
Stock Option [Member]
Options Exercised	0	6,100	0	139,228
Cash proceeds from the exercise of stock options		$ 5,490		$ 114,905
Weighted-average grant date fair value			$ .49	$ 0.67
Share-based compensation expense	$ 81,000	$ 125,000	$ 253,000	$ 419,000
Weighted average remaining life share-based compensation expense			1 year 3 months 3 days
Restricted Stock [Member]
Non-restricted shares awarded			74,046
Weighted-average grant date fair value			$ 0.61
Share-based compensation expense			$ 45,000

Related Party Transactions (Det

Related Party Transactions (Details Narrative) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Related Party Transactions (Textual) [Abstract]
Outstanding borrowings of promissory notes	$ 19,800,000	$ 19,800,000
Accrued Interest	4,200,000	4,200,000
Unamortized debt premium	100,000	100,000
Long-term Debt	$ 21,603,000
Costa Brava Note [Member]
Related Party Transactions (Textual) [Abstract]
Percentage of Common stock owned	47.10%
Percentage of Common stock owned on converted basis	56.70%
Unamortized debt premium	$ 100,000	100,000
Hamot [Member]
Related Party Transactions (Textual) [Abstract]
Percentage of Common stock owned	49.30%
Percentage of Common stock owned on converted basis	58.50%
Harlingwood [Member]
Related Party Transactions (Textual) [Abstract]
Percentage of Common stock owned	5.30%
Percentage of Common stock owned on converted basis	13.30%
Outstanding borrowings of promissory notes	$ 1,700,000	1,700,000
Accrued Interest	200,000	$ 200,000
Long-term Debt	$ 1,500,000

Commitments and Contingencies41

Commitments and Contingencies (Details) $ in Thousands	Sep. 30, 2015USD ($)
Commitments and Contingencies Disclosure [Abstract]
2,015	$ 129
2,016	705
2,017	703
2,018	703
2,019	674
Thereafter	588
Total	$ 3,502

Commitments and Contingencies42

Commitments and Contingencies (Details 1) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Year Ending December 31,
2,015	$ 9
2,016	7
Total minimum lease payments	$ 16
Amount representing interest
Present value of minimum lease payments	$ 16
Less current portion	$ (16)	$ (73)
Long-term portion		$ 22

Commitments and Contingencies43

Commitments and Contingencies (Details Narrative)	4 Months Ended	6 Months Ended	9 Months Ended
	Apr. 15, 2015USD ($)	Sep. 30, 2015USD ($)	Sep. 30, 2015USD ($)	Sep. 30, 2015CAD	Sep. 30, 2014USD ($)
Commitments and contingencies (Textual) [Abstract]
Total rent expense			$ 350,000		$ 320,000
Endorsement [Member]
Commitments and contingencies (Textual) [Abstract]
Minimum annual contracts payments due in 2015		$ 167,000	167,000
Minimum annual contracts payments due in 2016		380,000	380,000
Minimum annual contracts payments due in 2017		19,000	19,000
CA Headquarters [Member]
Commitments and contingencies (Textual) [Abstract]
Monthly rent payments	$ 29,000	$ 48,334
Encinitas Space [Member]
Commitments and contingencies (Textual) [Abstract]
Monthly rent payments			5,700
Canada CA Dollars [Member]
Commitments and contingencies (Textual) [Abstract]
Monthly rent payments | CAD				CAD 1,230
Monthly rent payments Canada, $USD			$ 917

Operating Segments and Geogra44

Operating Segments and Geographic Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Geographic Areas, Revenues from External Customers
Net sales	$ 9,370	$ 10,977	$ 26,622	$ 28,353
US and Canada [Member]
Geographic Areas, Revenues from External Customers
Net sales	7,554	1,912	22,367	24,073
EuropeAndAsiaPacific [Member]
Geographic Areas, Revenues from External Customers
Net sales	$ 1,816	$ 9,065	$ 4,255	$ 4,280

Operating Segments and Geogra45

Operating Segments and Geographic Information (Details 1) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Revenues from External Customers and Long-Lived Assets [Line Items]
Tangible long-lived assets	$ 629	$ 509
US and Canada [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Tangible long-lived assets	$ 629	$ 509
EuropeAndAsiaPacific [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Tangible long-lived assets