Spy Inc.

CIK:0000932372|SEC Filings

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)	$ (0.00)	$ (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 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

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