10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

FORM 10-Q

[X]       QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2023

Commission file number 1-2257

TRANS-LUX CORPORATION

(Exact name of registrant as specified in its charter)

Delaware		13-1394750
(State or other jurisdiction of		(I.R.S. Employer
incorporation or organization)		Identification No.)
254 West 31st Street, 12th Floor, New York, New York		10001
(Address of principal executive offices)		(Zip code)
	(800) 243-5544
(Registrant's telephone number, including area code)

Indicate by check mark whether the Registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes     X      No            

Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to file such files).  Yes     X      No         

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ___	Accelerated filer ___
Non-accelerated filer      X	Emerging growth company ___	Smaller reporting company      X

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.             

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes           No     X   

Indicate the number of shares outstanding of each of the issuer’s classes of Common Stock, as of the latest practicable date.

Date	Class	Shares Outstanding
5/12/23	Common Stock - $0.001 Par Value	13,496,276

TRANS-LUX CORPORATIONAND SUBSIDIARIES

	Table of Contents
		Page No.
Part I - Financial Information (unaudited)
Item 1.	Condensed Consolidated Balance Sheets – March 31, 2023 and December 31, 2022 (see Note 1)	1
	Condensed Consolidated Statements of Operations – Three Months Ended March 31, 2023 and 2022	2
	Condensed Consolidated Statements of Comprehensive Loss – Three Months Ended March 31, 2023 and 2022	2
	Condensed Consolidated Statements of Changes in Stockholders’ Deficit – Three Months Ended March 31, 2023 and 2022	3
	Condensed Consolidated Statements of Cash Flows – Three Months Ended March 31, 2023 and 2022	4
	Notes to Condensed Consolidated Financial Statements	5
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	17
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	21
Item 4.	Controls and Procedures	21
Part II - Other Information
Item 1.	Legal Proceedings	22
Item 1A.	Risk Factors	22
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	22
Item 3.	Defaults upon Senior Securities	22
Item 4.	Mine Safety Disclosures	23
Item 5.	Other Information	23
Item 6.	Exhibits	23
Signatures		24
Exhibits

Part I - Financial Information (unaudited)
           

Item 1.
TRANS-LUX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
	March 31		December 31
In thousands, except share data	2023		2022
ASSETS
Current assets:
Cash and cash equivalents	$	50	$	48
Receivables, net		2,983		2,832
Inventories		2,214		2,722
Prepaids and other assets		1,050		1,071
Total current assets		6,297		6,673
Long-term assets:
Rental equipment, net		196		225
Property, plant and equipment, net		1,652		1,715
Right of use assets		660		765
Other assets		34		34
Total long-term assets		2,542		2,739
TOTAL ASSETS	$	8,839	$	9,412
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
Accounts payable	$	6,762	$	6,339
Accrued liabilities		4,336		4,279
Current portion of long-term debt		3,768		3,768
Current lease liabilities		313		393
Customer deposits		989		1,183
Total current liabilities		16,168		15,962
Long-term liabilities:
Long-term debt, less current portion		500		500
Long-term lease liabilities		383		412
Deferred pension liability and other		2,925		2,862
Total long-term liabilities		3,808		3,774
Total liabilities		19,976		19,736
Stockholders' deficit:
Preferred Stock Series A - $20 stated value -  416,500 shares authorized;     shares issued and outstanding: 0 in 2022 and 2021		-		-
Preferred Stock Series B - $200 stated value -  51,000 shares authorized;     shares issued and outstanding: 0 in 2022 and 2021		-		-
Common Stock - $0.001 par value -  30,000,000 shares authorized;     shares issued: 13,474,116 in 2022 and 2021;     shares outstanding: 13,446,276 in 2022 and 2021		13		13
Additional paid-in-capital		41,482		41,444
Accumulated deficit		(43,510)		(42,652)
Accumulated other comprehensive loss		(6,059)		(6,066)
Treasury stock - at cost - 27,840 common shares in 2022 and 2021		(3,063)		(3,063)
Total stockholders' deficit		(11,137)		(10,324)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$	8,839	$	9,412
The accompanying notes are an integral part of these condensed consolidated financial statements.

1

TRANS-LUX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
	3 Months Ended
	March 31
In thousands, except per share data	2023		2022
Revenues:
Digital product sales	$	4,121	$	3,237
Digital product lease and maintenance		228		428
Total revenues		4,349		3,665
Cost of revenues:
Cost of digital product sales		3,803		2,958
Cost of digital product lease and maintenance		105		165
Total cost of revenues		3,908		3,123
Gross income		441		542
General and administrative expenses		(1,078)		(762)
Operating loss		(637)		(220)
Interest expense, net		(144)		(142)
Loss on foreign currency remeasurement		(8)		(16)
Gain on forgiveness of PPP loan		-		824
Pension (expense) benefit		(63)		53
(Loss) income before income taxes		(852)		499
Income tax expense		(6)		(6)
Net (loss) income	$	(858)	$	493
The accompanying notes are an integral part of these condensed consolidated financial statements.

TRANS-LUX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME
(unaudited)
	3 Months Ended
	March 31
In thousands	2023		2022
Net (loss) income	$	(858)	$	493
Other comprehensive income:
Unrealized foreign currency translation gain		7		27
Total other comprehensive income, net of tax		7		27
Comprehensive (loss) income	$	(851)	$	520
The accompanying notes are an integral part of these condensed consolidated financial statements.

2

TRANS-LUX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT
(unaudited)
														Accumulated				Total
	Preferred Stock									Add'l				Other				Stock-
	Series A			Series B			Common Stock			Paid-in		Accumulated		Comprehensive		Treasury		holders'
In thousands, except share data	Shares	Amt		Shares	Amt		Shares	Amt		Capital		Deficit		Loss		Stock		Deficit
For the 3 months ended March 31, 2023
Balance January 1, 2023	-	$	-	-	$	-	13,474,116	$	13	$	41,444	$	(42,652)	$	(6,066)	$	(3,063)	$	(10,324)
Net loss	-		-	-		-	-		-		-		(858)		-		-		(858)
Issuance of options	-		-	-		-	-		-		38				-		-		38
Other comprehensive income, net of tax:
Unrealized foreign currency translation gain	-		-	-		-	-		-		-		-		7		-		7
Balance March 31, 2023	-	$	-	-	$	-	13,474,116	$	13	$	41,482	$	(43,510)	$	(6,059)	$	(3,063)	$	(11,137)
For the 3 months ended March 31, 2022
Balance January 1, 2022	-	$	-	-	$	-	13,474,116	$	13	$	41,330	$	(42,975)	$	(6,253)	$	(3,063)	$	(10,948)
Net income	-		-	-		-	-		-		-		493		-		-		493
Other comprehensive income, net of tax:
Unrealized foreign currency translation gain	-		-	-		-	-		-		-		-		27		-		27
Balance March 31, 2022	-	$	-	-	$	-	13,474,116	$	13	$	41,330	$	(42,482)	$	(6,226)	$	(3,063)	$	(10,428)
The accompanying notes are an integral part of these condensed consolidated financial statements.

3

TRANS-LUX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
	3 Months Ended
	March 31
In thousands		2023	2022
Cash flows from operating activities
Net (loss) income	$	(858)	$	493
Adjustment to reconcile net (loss) income to net cash      provided by (used in) operating activities:
Depreciation and amortization		92		110
Amortization of right of use assets		105		97
Gain on forgiveness of PPP loan		-		(824)
Amortization of deferred financing fees and debt discount		-		32
Loss on foreign currency remeasurement		8		16
Amortization of stock options		38		-
Allowance for credit losses		112		56
Changes in operating assets and liabilities:
Accounts receivable		(263)		(309)
Inventories		508		(740)
Prepaids and other assets		21		(451)
Accounts payable		423		(365)
Accrued liabilities		57		78
Operating lease liabilities		(109)		(87)
Customer deposits		(194)		1,128
Deferred pension liability and other		61		(62)
Net cash provided by (used in) operating activities		1		(828)
Cash flows from investing activities
Purchases of property, plant and equipment		-		(12)
Net cash used in investing activities		-		(12)
Cash flows from financing activities
Proceeds from long-term debt		-		703
Net cash provided by financing activities		-		703
Effect of exchange rate changes		1		(4)
Net increase (decrease) in cash and cash equivalents		2		(141)
Cash and cash equivalents at beginning of year		48		524
Cash and cash equivalents at end of period	$	50	$	383
Supplemental disclosure of cash flow information:
Interest paid	$	-	$	-
Income taxes paid		10		10
The accompanying notes are an integral part of these condensed consolidated financial statements.

4

TRANS-LUX CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2023

(unaudited)

Note 1 – Basis of Presentation

As used in this report, “Trans-Lux,” the “Company,” “we,” “us,” and “our” refer to Trans-Lux Corporation and its subsidiaries.

Financial information included herein is unaudited, however, such information reflects all adjustments (of a normal and recurring nature), which are, in the opinion of management, necessary for the fair presentation of the Condensed Consolidated Financial Statements for the interim periods. The results for the interim periods are not necessarily indicative of the results to be expected for the full year.  The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with rule 10-01 of Regulation S-X promulgated by the Securities and Exchange Commission (the “SEC”) and therefore do not include all information and footnote disclosures required under accounting principles generally accepted in the United States of America (“GAAP”).  The Condensed Consolidated Financial Statements included herein should be read in conjunction with the Consolidated Financial Statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.  The Condensed Consolidated Balance Sheet at December 31, 2022 is derived from the December 31, 2022 audited financial statements.

Critical Accounting Policies and Estimates

Accounting policies used in the preparation of our financial statements may involve the use of management judgments and estimates.  Certain of our accounting policies are considered critical as they are both important to the portrayal of our financial statements and require significant or complex judgments on the part of management.  Our judgments and estimates are based on experience and assumptions that we believe are reasonable under the circumstances.  Further, we evaluate our judgments and estimates from time to time as circumstances change.  Actual financial results based on judgments or estimates may vary under different assumptions or circumstances.  Our critical accounting policies are discussed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022, filed with the Securities and Exchange Commission on March 31, 2023.

The following new accounting pronouncements were adopted in 2023:

In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.”  ASU 2016-13 requires that entities use a new forward looking “expected loss” model that generally will result in the earlier recognition of allowance for credit losses.  The measurement of expected credit losses is based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount.  ASU No. 2016-13 is effective for annual reporting periods, including interim reporting periods within those periods, beginning after December 15, 2022.  The Company adopted the new guidance on January 1, 2023 and determined it did not have a material impact on its consolidated financial statements.

The following new accounting pronouncements, and related impacts on adoption, are being evaluated by the Company:

None.

Note 2 – Liquidity and Going Concern

A fundamental principle of the preparation of financial statements in accordance with GAAP is the assumption that an entity will continue in existence as a going concern, which contemplates continuity of operations and the realization of assets and settlement of liabilities occurring in the ordinary course of business.  This principle is applicable to all entities except for entities in liquidation or entities for which liquidation appears imminent.  In accordance with this requirement, the Company has prepared its accompanying Condensed Consolidated Financial Statements assuming the Company will continue as a going concern.

The Company has incurred recurring operating losses and continues to have a working capital deficiency including being in default of several debt obligations.  The Company recorded a loss of $858,000 in the three months ended March 31, 2023, and had a working capital deficiency of $9.9 million as of March 31, 2023.  As of December 31, 2022, the Company had a working capital deficiency of $9.3 million.

5

The Company is dependent on future operating performance in order to generate sufficient cash flows in order to continue to run its businesses.  Future operating performance is dependent on general economic conditions, as well as financial, competitive and other factors beyond our control, including the impact of the current economic environment, the spread of major epidemics (including coronavirus), increases in interest rates and other related uncertainties such as government-imposed travel restrictions, interruptions to supply chains, extended shut down of businesses and the impact of inflation.  In order to more effectively manage its cash resources, the Company had, from time to time, increased the timetable of its payment of some of its payables, which delayed certain product deliveries from our vendors, which in turn delayed certain deliveries to our customers.

If we are unable to (i) obtain additional liquidity for working capital, (ii) make the required minimum funding contributions to the defined benefit pension plan, (iii) make the required principal and interest payments on our outstanding 8¼% Limited convertible senior subordinated notes due 2012 (the “Notes”) and 9½% Subordinated debentures due 2012 (the “Debentures”), (iv) repay our obligations under our Loan Agreement (hereinafter defined) with Unilumin and/or (v) repay our obligations under our loan agreements with Carlisle, there would be a significant adverse impact on our financial position and operating results.  The Company continually evaluates the need and availability of long-term capital in order to meet its cash requirements and fund potential new opportunities.  Due to the above, there is substantial doubt as to whether we will have adequate liquidity, including access to the debt and equity capital markets, to continue as a going concern over the next 12 months from the date of issuance of this Form 10-Q.

Note 3 – Revenue Recognition

We recognize revenue in accordance with two different accounting standards: 1) Accounting Standards Codification (“ASC”) Topic 606 and 2) ASC Topic 842.  Under Topic 606, revenue from contracts with customers is measured based on the consideration specified in the contract with the customer, and excludes any sales incentives and amounts collected on behalf of third parties.  A performance obligation is a promise in a contract to transfer a distinct good or service to a customer, and is the unit of account under Topic 606.  Our contracts with customers generally do not include multiple performance obligations.  We recognize revenue when we satisfy a performance obligation by transferring control over a product or service to a customer.  The amount of revenue recognized reflects the consideration we expect to be entitled to in exchange for such products or services.  None of the Company’s contracts contained a significant financing component as of March 31, 2023.  Revenue from the Company’s digital product and maintenance service is recognized ratably over the lease term in accordance with ASC Topic 842.

6

Disaggregated Revenues

The following table represents a disaggregation of revenue from contracts with customers for the three months ended March 31, 2023 and 2023, along with the reportable segment for each category:

	For the Three Months Ended
In thousands	March 31, 2023		March 31, 2022
Digital product sales:
Catalog and small customized products	$	4,121	$	3,237
Large customized products		-		-
Subtotal		4,121		3,237
Digital product lease and maintenance:
Operating leases		131		171
Maintenance agreements		97		257
Subtotal		228		428
Total	$	4,349	$	3,665

The Company has two primary revenue streams which are Digital product sales and Digital product lease and maintenance.

Digital Product Sales

The Company recognizes net revenue on digital product sales to its distribution partners and to end users related to digital display solutions and fixed digit scoreboards.  For the Company’s catalog products, revenue is generally recognized when the customer obtains control of the Company’s product, which occurs at a point in time, and may be upon shipment or upon delivery based on the contractual shipping terms of a contract.  For the Company’s customized products, revenue is either recognized at a point in time or over time depending on the length of the contract.  For those customized product contracts that are smaller in size, revenue is generally recognized when the customer obtains control of the Company’s product, which occurs at a point in time, and may be upon shipment or upon delivery based on the contractual shipping terms of a contract.  For those customized product contracts that are larger in size, revenue is recognized over time based on incurred costs as compared to projected costs using the input method, as this best reflects the Company’s progress in transferring control of the customized product to the customer.  The Company may also contract with a customer to perform installation services of digital display products.  Similar to the larger customized products, the Company recognizes the revenue associated with installation services using the input method, whereby the basis is the total contract costs incurred to date compared to the total expected costs to be incurred.

Revenue on sales to distribution partners are recorded net of prompt-pay discounts, if offered, and other deductions.  To the extent the transaction price includes variable consideration, the Company estimates the amount of variable consideration that should be included in the transaction price utilizing the most likely amount method to which the Company expects to be entitled.  In the case of prompt-pay discounts, there are only two possible outcomes: either the customer pays on-time or does not.  Variable consideration is included in the transaction price if, in the Company’s judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur.  Determination of whether to include estimated amounts in the transaction price are based largely on an assessment of the Company’s anticipated performance and all information (historical, current and forecasted) that is reasonably available.  The Company believes that the estimates it has established are reasonable based upon current facts and circumstances.  Applying different judgments to the same facts and circumstances could result in the estimated amounts to vary.  The Company offers an assurance-type warranty that the digital display products will conform to the published specifications.  Returns may only be made subject to this warranty and not for convenience.

7

Digital Product Lease and Maintenance

Digital product lease revenues represent revenues from leasing equipment that we own.  We do not generally provide an option for the lessee to purchase the rented equipment at the end of the lease and do not generate material revenue from sales of equipment under such options.  Our lease revenues do not include material amounts of variable payments.  Digital product maintenance revenues represent revenues from maintenance agreements for equipment that we do not own.  Lease and maintenance contracts generally run for periods of one month to 10 years.  A contract entered into by the Company with a customer may contain both lease and maintenance services (either or both services may be agreed upon based on the individual customer contract).  Maintenance services may consist of providing labor, parts and software maintenance as may be required to maintain the customer’s equipment in proper operating condition at the customer’s service location.  The Company concluded the lease and maintenance services represent a series of distinct services and the most representative method for measuring progress towards satisfying the performance obligation of these services is the input method.  Additionally, maintenance services require the Company to “stand ready” to provide support to the customer when and if needed.  As there is no discernable pattern of efforts other than evenly over the lease and maintenance terms, the Company will recognize revenue straight-line over the lease and maintenance terms of service.

The Company has an enforceable right to payment for performance completed to date, as evidenced by the requirement that the customer pay upfront for each month of services. Lease and maintenance service amounts billed ahead of revenue recognition are recorded in deferred revenue and are included in accrued liabilities in the Condensed Consolidated Financial Statements.

Revenues from equipment lease and maintenance contracts are recognized during the term of the respective agreements.  At March 31, 2023, the future minimum lease payments due to the Company under operating leases that expire at varying dates through 2030 for its rental equipment and maintenance contracts, assuming no renewals of existing leases or any new leases, aggregating $1,641,000 are as follows:  $466,000 – remainder of 2023, $391,000 – 2024, $305,000 – 2025, $235,000 – 2026, $176,000 – 2027 and $68,000 thereafter.

Contract Balances with Customers

Contract assets primarily relate to rights to consideration for goods or services transferred to the customer when the right is conditional on something other than the passage of time.  The contract assets are transferred to the receivables when the rights become unconditional.  As of March 31, 2023 and December 31, 2022, the Company had no contract assets.  The contract liabilities primarily relate to the advance consideration received from customers for contracts prior to the transfer of control to the customer and therefore revenue is recognized on completion of delivery.  Contract liabilities are classified as deferred revenue by the Company and are included in customer deposits and accrued liabilities in the Condensed Consolidated Balance Sheets.

8

Table of Contents

The following table presents the balances in the Company’s receivables and contract liabilities with customers:

In thousands	March 31, 2023		December 31, 2022
Gross receivables	$	3,378	$	3,123
Allowance for credit losses		395		291
Net receivables		2,983		2,832
Contract liabilities		1,133		1,229

During the three months ended March 31, 2023 and 2022, the Company recognized the following revenues as a result of changes in the contract asset and the contract liability balances in the respective periods:

	For the Three Months Ended
In thousands	March 31, 2023		March 31, 2022
Revenue recognized in the period from:
Amounts included in the contract liability at the beginning of the period	$	367	$	344
Performance obligations satisfied in previous periods (for example, due to changes in transaction price)	$	-	$	-

Transaction Price Allocated to Future Performance Obligations

As of March 31, 2023, the aggregate amount of the transaction price allocated to remaining performance obligations for digital product sales was $1.7 million and digital product lease and maintenance was $1.6 million.  

The Company expects to recognize revenue on approximately 68%, 20% and 12% of the remaining performance obligations over the next 12 months, 13 to 36 months and 37 or more months, respectively.

Costs to Obtain or Fulfill a Customer Contract

The Company capitalizes incremental costs of obtaining customer contracts.  Capitalized commissions are amortized based on the transfer of the products or services to which the assets relate.  Applying the practical expedient, the Company recognizes the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that the Company otherwise would have recognized is one year or less.  These costs are included in General and administrative expenses.

9

The Company accounts for shipping and handling activities related to contracts with customers as costs to fulfill the promise to transfer the associated products.  When shipping and handling costs are incurred after a customer obtains control of the products, the Company also has elected to account for these as costs to fulfill the promise and not as a separate performance obligation.  Shipping and handling costs associated with the distribution of finished products to customers are recorded in costs of goods sold and are recognized when the related finished product is shipped to the customer.

Note 4 – Inventories

Inventories consist of the following:

	March 31 2023			December 31 2022
In thousands
Raw materials		$	1,827	$	2,535
Work-in-progress			-		-
Finished goods			387		187
		$	2,214	$	2,722

Note 5 – Rental Equipment, net

Rental equipment consists of the following:

	March 31 2023			December 31 2022
In thousands
Rental equipment		$	2,077	$	2,077
Less accumulated depreciation			1,881		1,852
Net rental equipment		$	196	$	225

Depreciation expense for rental equipment for the three months ended March 31, 2023 and 2022 was $29,000 and $47,000, respectively.

Note 6 – Property, Plant and Equipment, net

Property, plant and equipment consists of the following:

In thousands	March 31 2023		December 31 2022
Machinery, fixtures and equipment	$	2,856	$	2,856
Leaseholds and improvements		23		23
		2,879		2,879
Less accumulated depreciation		1,227		1,164
Net property, plant and equipment	$	1,652	$	1,715

Machinery, fixtures and equipment having a net book value of $1.7 million at both March 31, 2023 and December 31, 2022 were pledged as collateral under various financing agreements.

Depreciation expense for property, plant and equipment for both of the three months ended March 31, 2023 and 2022 was $63,000.

10

Note 7 – Long-Term Debt

Long-term debt consists of the following:

	March 31		December 31
In thousands	2023		2022
8¼% Limited convertible senior subordinated notes due 2012	$	302	$	302
9½% Subordinated debentures due 2012		220		220
Revolving credit line – related party		2,246		2,246
Term loans – related party		1,000		1,000
Term loans		500		500
Total debt		4,268		4,268
Less deferred financing costs and debt discount		-		-
Net debt		4,268		4,268
Less portion due within one year		3,768		3,768
Net long-term debt	$	500	$	500

On September 16, 2019, the Company entered into a loan agreement (the “Loan Agreement”) with MidCap, which was subsequently modified.  On July 30, 2021, MidCap assigned the loan to Unilumin.  On March 20, 2023, the Company and Unilumin entered into a modification agreement to the Loan Agreement effective December 31, 2022.  The Loan Agreement matures on December 31, 2023.  The Loan Agreement allows the Company to borrow up to an aggregate of $2.2 million at an interest rate of the Prime Rate as published in the Wall Street Journal plus 4.75% (12.75% at March 31, 2023) on a revolving credit loan based on accounts receivable, inventory and equipment for general working capital purposes.  As of March 31, 2023, the balance outstanding under the Loan Agreement was $2.2 million.  The Loan Agreement also requires the payment of certain fees, including a facility fee, an unused credit line fee and a collateral monitoring charge.  The Loan Agreement contains financial and other covenant requirements, including financial covenants that require the Company to attain certain EBITDA amounts for certain periods, including the year ended March 31, 2023.  The Company was not in compliance with this covenant.  The Loan Agreement is secured by substantially all of the Company’s assets.

The Company entered into a loan note (the “Loan Note”) with the SBA (“Lender”) as lender under their Economic Injury Disaster Loan (“EIDL”) program, dated as of December 10, 2021.  Under the Loan Note, the Company borrowed $500,000 from Lender under the EIDL Program.  As of March 31, 2023, $500,000 was outstanding.  The loan matures on December 10, 2051 and carries an interest rate of 3.75%.  As of March 31, 2023 and December 31, 2022, the Company had accrued $24,000 and $20,000, respectively, of interest related to the Loan Note, which is included in Accrued liabilities in the Consolidated Balance Sheets.

On April 23, 2020, the Company entered into a loan note (the “Loan Note”) with Enterprise Bank and Trust (“Lender”) as lender under the CARES Act of the Small Business Administration of the United States of America (“SBA”), dated as of April 20, 2020.  Under the Loan Note, the Company borrowed $811,000 from Lender under the Paycheck Protection Program (“PPP”) included in the SBA’s CARES Act.  The Loan Note proceeds were forgivable as long as the Company uses the loan proceeds for eligible purposes including payroll costs, including salaries, commissions, and similar compensation, group health care benefits, and paid leave; rent; utilities; and maintains its payroll levels.  In January 2022, the loan was forgiven in full and the payments that had previously been paid were refunded.  Refund proceeds in the amount of $453,000 are included in proceeds from long-term debt in the accompanying condensed consolidated statements of Cash Flows for the three months ended March 31, 2022.

11

The Company has a $500,000 loan from Carlisle Investments Inc. (“Carlisle”) at a fixed interest rate of 12.00%, which matured on April 27, 2019 with a bullet payment of all principal due at such time.  Interest is payable monthly.  Carlisle had agreed to not demand payment on the loan through at least December 31, 2020, and has not made any such demands as of the date of this filing.  As of March 31, 2023, the entire amount was outstanding and is included in current portion of long-term debt in the Consolidated Balance Sheets.  As of March 31, 2023 and December 31, 2022, the Company had accrued $315,000 and $300,000, respectively, of interest related to this loan, which are included in accrued liabilities in the Condensed Consolidated Balance Sheets. Marco Elser, a director of the Company, exercises voting and dispositive power as investment manager of Carlisle.

The Company has an additional $500,000 loan from Carlisle at a fixed interest rate of 12.00%, which matured on December 10, 2017 with a bullet payment of all principal due at such time (the “Second Carlisle Agreement”).  Interest is payable monthly.  Carlisle had agreed to not demand payment on the loan through at least December 31, 2020, and has not made any such demands as of the date of this filing.  As of March 31, 2022, the entire amount was outstanding and is included in current portion of long-term debt Consolidated Balance Sheets.  As of March 31, 2023 and December 31, 2022, the Company had accrued $315,000 and $300,000, respectively, of interest related to this loan, which are included in accrued liabilities in the Condensed Consolidated Balance Sheets.  Under the Second Carlisle Agreement, the Company granted a security interest to Carlisle in accounts receivable, materials and intangibles relating to a certain purchase order for equipment issued in April 2017.

As of March 31, 2023 and December 31, 2022, the Company had outstanding $302,000 of Notes.  The Notes matured as of March 1, 2012 and are currently in default.  As of March 31, 2023 and December 31, 2022, the Company had accrued $338,000 and $332,000, respectively, of interest related to the Notes, which is included in Accrued liabilities in the Consolidated Balance Sheets.  The trustee, by notice to the Company, or the holders of 25% of the principal amount of the Notes outstanding, by notice to the Company and the trustee, may declare the outstanding principal plus interest due and payable immediately.

As of March 31, 2023 and December 31, 2022, the Company had outstanding $220,000 of Debentures.  The Debentures matured as of December 1, 2012 and are currently in default.  As of March 31, 2023 and December 31, 2022, the Company had accrued $279,000 and $273,000, respectively, of interest related to the Debentures, which is included in Accrued liabilities in the Consolidated Balance Sheets.  The trustee, by notice to the Company, or the holders of 25% of the principal amount of the Debentures outstanding, by notice to the Company and the trustee, may declare the outstanding principal plus interest due and payable immediately.

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Note 8 – Pension Plan

As of December 31, 2003, the benefit service under the pension plan had been frozen and, accordingly, there is no service cost.  As of April 30, 2009, the compensation increments had been frozen and, accordingly, no additional benefits are being accrued under the pension plan.

The following table presents the components of net periodic pension cost:

	Three months ended March 31
In thousands	2023		2022
Interest cost	$	134	$	76
Expected return on plan assets		(145)		(200)
Amortization of net actuarial loss		74		71
Net periodic pension benefit	$	63	$	(53)

As of both March 31, 2023 and December 31, 2022, all pension contributions were due more than one year from the respective reporting dates, so the Company did not record a current pension liability.  As of both March 31, 2023 and December 31, 2022, the Company recorded a long-term pension liability of $2.9 million, which is included in deferred pension liability and other in the Condensed Consolidated Balance Sheets.  There is not expected to be a minimum required contribution in 2023.

Note 9 – Leases

The Company leases administrative and manufacturing facilities through operating lease agreements. The Company has no finance leases as of March 31, 2023.  Our leases include both lease (e.g., fixed payments including rent) and non-lease components (e.g., common area or other maintenance costs). The facility leases include one or more options to renew.  The exercise of lease renewal options is typically at our sole discretion, therefore, the renewals to extend the lease terms are not included in our right of use (“ROU”) assets or lease liabilities as they are not reasonably certain of exercise.  We regularly evaluate the renewal options and, when they are reasonably certain of exercise, we include the renewal period in our lease term.

Operating leases result in the recognition of ROU assets and lease liabilities on the Condensed Consolidated Balance Sheets.  ROU assets represent our right to use the leased asset for the lease term and lease liabilities represent our obligation to make lease payments.  Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term.  As most of our leases do not provide an implicit rate, we use our estimated incremental borrowing rate at the commencement date to determine the present value of lease payments.  Most real estate leases include one or more options to renew, with renewal terms that can extend the lease term from 1 to 5 years or more.  Lease expense is recognized on a straight-line basis over the lease term.  Leases with an initial term of 12 months or less are not recorded on the Condensed Consolidated Balance Sheets.  The primary leases we enter into with initial terms of 12 months or less are for equipment.

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Supplemental information regarding leases:

	March 31
In thousands, unless otherwise noted	2023
Balance Sheet:
ROU assets	$	660
Current lease liabilities – operating		313
Non-current lease liabilities - operating		383
Total lease liabilities		696
Weighted average remaining lease term (years)		1.5
Weighted average discount rate		7.5%
Future minimum lease payments:
Remainder of 2023	$	314
2024		146
2025		149
2026		152
2027		12
Thereafter		-
Total		773
Less: Imputed interest		77
Total lease liabilities		696
Less: Current lease liabilities		313
Long-term lease liabilities	$	383

Supplemental cash flow information regarding leases:

	For the three months ended
In thousands	March 31, 2023
Operating cash flow information:
Cash paid for amounts included in the measurement of lease liabilities	$	124
Non-cash activity:
ROU assets obtained in exchange for lease liabilities		-

Total operating lease expense was $119,000 and $130,000 for the three months ended March 31, 2023 and 2022, respectively.  There was no short-term lease expense for the three months ended March 31, 2023 and 2022.

Note 10 – Stockholders’ Deficit and Income (Loss) Per Share

The following table presents the calculation of income (loss) per share for the three months ended March 31, 2023 and 2022:

Three months ended March 31
In thousands, except per share data	2023		2022
Numerator:
Net (loss) income, as reported	$	(858)	$	493
Denominator:
Weighted average shares outstanding – basic		13,446		13,446
Weighted average shares outstanding – diluted		13,470		13,531
Basic and diluted (loss) earnings per share – basic and diluted	$	(0.06)	$	0.04

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Basic earnings (loss) per common share is computed by dividing net income (loss) attributable to common shares by the weighted average number of common shares outstanding for the period.  Diluted earnings (loss) per common share is computed by dividing net income (loss) attributable to common shares, by the weighted average number of common shares outstanding, adjusted for shares that would be assumed outstanding after warrants and stock options vested under the treasury stock method.

On March 28, 2022, the Company issued stock options to purchase 280,000 shares to executives and employees at an exercise price of $0.40 per share, which became vested on March 28, 2023.  The options were valued at the grant date using the Black-Scholes model with the following inputs:  expiration date March 28, 2026; risk-free rate of return 2.55%; and volatility 108%.

As of March 31, 2023, the Company excluded the effects of the outstanding stock options to purchase 280,000 shares in the calculation of diluted loss per share since their inclusion would have been anti-dilutive.  As of March 31, 2023 and 2022, the Company had other warrants to purchase 1.6 million shares of Common Stock outstanding, which were excluded from the calculation of diluted income (loss) per share because their exercise price was greater than the average stock price for the period and their inclusion would have been anti-dilutive.

A summary of the status of the Company’s stock options as of March 31, 2023 and the changes during the three months then ended is presented below:

	Number of Options	Weighted Average  Exercise Price		Weighted average remaining contractual life (in years)	Average intrinsic  value
Outstanding at December 31, 2022	280,000	$	0.40	3.3	$	0.19
Granted	-		-
Expired	-		-
Outstanding at March 31, 2023	280,000	$	0.40	3.0	$	0.19
Exercisable at the end of the period	280,000	$	0.40	3.0	$	0.19

Equity based compensation was $38,000 for the three months ended March 31, 2023.  There was no equity based compensation for the three months ended March 31, 2022.  There is no more unrecognized equity based compensation cost related to unvested stock options as of March 31, 2023.

Note 11 – Contingencies

The Company is subject to legal proceedings and claims which arise in the ordinary course of its business and/or which are covered by insurance.  The Company has accrued reserves individually and in the aggregate for such legal proceedings.  Should actual litigation results differ from the Company’s estimates, revisions to increase or decrease the accrued reserves may be required.  There are no open matters that the Company deems material.

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Note 12 – Related Party Transactions

The Company has the following related party transactions:

As of March 31, 2023, Unilumin USA (“Unilumin”) owns 52.0% of the Company’s Common Stock and beneficially owns 53.7% of the Company’s Common Stock.  Nicholas J. Fazio, Yang Liu and Yantao Yu, each directors of the Company, are each directors and/or officers of Unilumin.  Mr. Fazio and Mr. Yu are both executive officers of the Company, but had not yet been added to the Company’s payroll until January 2023 at annual rates of compensation of $125,000 and $26,000, respectively.  In 2022 and prior, they had been compensated solely by Unilumin, with no charge to the Company.  In 2023, they continue to receive some compensation directly from Unilumin.  The Company purchased $472,000 and $1.1 million of product from Unilumin in the three months ended March 31, 2023 and 2022, respectively.  The total amount payable by the Company to Unilumin, including accounts payable, accrued interest and long-term debt, was $7.6 million and $7.3 million as of March 31, 2023 and December 31, 2022, respectively.

Marco Elser, a director of the Company, exercises voting and dispositive power as investment manager of Carlisle.  The total amount payable by the Company to Carlisle, including accrued interest and long-term debt, was $1.6 million as of March 31, 2023 and December 31, 2022.

Note 13 – Business Segment Data

Operating segments are based on the Company’s business components about which separate financial information is available and are evaluated regularly by the Company’s chief operating decision makers in deciding how to allocate resources and in assessing performance of the business.

The Company evaluates segment performance and allocates resources based upon operating income (loss). The Company’s operations are managed in two reportable business segments: Digital product sales and Digital product lease and maintenance.  Both design and produce large-scale, multi-color, real-time digital displays.  Both operating segments are conducted on a global basis, primarily through operations in the United States.  The Company also has operations in Canada.  The Digital product sales segment sells equipment and the Digital product lease and maintenance segment leases and maintains equipment.  Corporate general and administrative items relate to costs that are not directly identifiable with a segment.  There are no intersegment sales.

Foreign revenues represent less than 10% of the Company’s revenues in the three months ended March 31, 2023 and 2022.  The Company’s foreign operation does not manufacture its own equipment; the domestic operation provides the equipment that the foreign operation leases or sells.  The foreign operation operates similarly to the domestic operation and has similar profit margins.  Foreign assets are immaterial.

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Information about the Company’s operations in its two business segments for the three months ended March 31, 2023 and 2022 is as follows:

	Three Months Ended March 31
In thousands	2023		2022
Revenues:
Digital product sales	$	4,121	$	3,237
Digital product lease and maintenance		228		428
Total revenues	$	4,349	$	3,665
Operating (loss) income:
Digital product sales	$	(301)	$	(71)
Digital product lease and maintenance		123		257
Corporate general and administrative expenses		(459)		(406)
Total operating loss		(637)		(220)
Interest expense, net		(144)		(142)
Loss on foreign currency remeasurement		(8)		(16)
Gain on forgiveness of PPP loan		-		824
Pension (expense) benefit		(63)		53
(Loss) income before income taxes		(852)		499
Income tax expense		(6)		(6)
Net (loss) income	$	(858)	$	493

	March 31 2023		December 31 2022
Assets
Digital product sales	$	7,784	$	8,221
Digital product lease and maintenance		1,005		1,143
Total identifiable assets		8,789		9,364
General corporate		50		48
Total assets	$	8,839	$	9,412

Note 14 – Subsequent Events

The Company has evaluated events and transactions subsequent to March 31, 2023 and through the date these Condensed Consolidated Financial Statements were included in this Form 10-Q and filed with the SEC.

Item 2.             Management’s Discussion and Analysis of Financial Condition and Results of Operations

Overview

Trans-Lux is a leading supplier of LED technology for display applications.  The essential elements of these systems are the real-time, programmable digital products that we design, manufacture, distribute and service.  Designed to meet the digital signage solutions for any size venue’s indoor and outdoor needs, these displays are used primarily in applications for the financial, banking, gaming, corporate, advertising, transportation, entertainment and sports markets.  The Company operates in two reportable segments: Digital product sales and Digital product lease and maintenance.

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The Digital product sales segment includes worldwide revenues and related expenses from the sales of both indoor and outdoor digital product signage.  This segment includes the financial, government/private, gaming, scoreboards and outdoor advertising markets.  The Digital product lease and maintenance segment includes worldwide revenues and related expenses from the lease and maintenance of both indoor and outdoor digital product signage.  This segment includes the lease and maintenance of digital product signage across all markets.

Results of Operations

Three Months Ended March 31, 2023 Compared to Three Months Ended March 31, 2022

The following table presents our Statements of Operations data, expressed as a percentage of revenue for the three months ended March 31, 2023 and 2022:

	Three months ended March 31
In thousands, except percentages	2023				2022
Revenues:
Digital product sales	$	4,121	94.8	%	$	3,237	88.3	%
Digital product lease and maintenance		228	5.2	%		428	11.7	%
Total revenues		4,349	100.0	%		3,665	100.0	%
Cost of revenues:
Cost of digital product sales		3,803	87.5	%		2,958	80.7	%
Cost of digital product lease and maintenance		105	2.4	%		165	4.5	%
Total cost of revenues		3,908	89.9	%		3,123	85.2	%
Gross profit		441	10.1	%		542	14.8	%
General and administrative and restructuring expenses		(1,078)	(24.8)	%		(762)	(11.1)	%
Operating loss		(637)	(14.7)	%		(220)	(6.1)	%
Interest expense, net		(144)	(3.3)	%		(142)	(3.9)	%
Loss on foreign currency remeasurement		(8)	(0.2)	%		(16)	(0.4)	%
Gain on forgiveness of PPP loan		-	-	%		824	22.5	%
Pension (expense) benefit		(63)	(1.4)	%		53	1.4	%
(Loss) income before income taxes		(852)	(19.6)	%		499	13.6	%
Income tax expense		(6)	(0.1)	%		(6)	(0.2)	%
Net (loss) income	$	(858)	(19.7)	%	$	493	13.5	%

Total revenues for the three months ended March 31, 2023 increased $684,000 or 18.7% to $4.3 million from $3.7 million for the three months ended March 31, 2022, primarily due to increases in Digital product sales, partially offset by a decrease in Digital lease and maintenance revenues.

Digital product sales revenues increased $884,000 or 27.3%, primarily due to the return of customer orders since COVID-19 pandemic restrictions have been reduced or eliminated over the past year.

Digital product lease and maintenance revenues decreased $200,000 or 46.7%, primarily due to the continued expected revenue decline in the older outdoor display equipment rental bases acquired in the early 1990s.  The financial services market continues to be negatively impacted by the current investment climate resulting in consolidation within that industry and the wider use of flat-panel screens for smaller applications.

Total operating loss for the three months ended March 31, 2023 increased $417,000 to $637,000 from $220,000 for the three months ended March 31, 2022, principally due to an increase in general and administrative expenses and an increase in the cost of revenues as a percentage of revenues.

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Digital product sales operating loss increased $230,000 to $301,000 for the three months ended March 31, 2023 compared to $71,000 for the three months ended March 31, 2022, primarily due to an increase in general and administrative expenses and an increase in the cost of revenues as a percentage of revenues.  The cost of Digital product sales increased $845,000 or 28.6%, primarily due to the increase in revenues.  The cost of Digital product sales represented 92.3% of related revenues in 2023 compared to 91.4% in 2022, which increase was caused by a greater increase in expenses than the increase in revenues.  General and administrative expenses for Digital product sales increased $269,000 or 76.9%, primarily due to increases in consulting expenses, bad debt expenses and employees’ expenses.

Digital product lease and maintenance operating income decreased $134,000 or 52.1%, primarily due to the decrease in revenues, partially offset by a decrease in depreciation expense.  The cost of Digital product lease and maintenance decreased $60,000 or 36.4%, primarily due to a decrease in depreciation expense.  The cost of Digital product lease and maintenance revenues represented 46.1% of related revenues in 2023 compared to 38.6% in 2022, which increase was caused by the revenue reduction which was greater than the reduction of expenses.  The cost of Digital product lease and maintenance includes field service expenses, plant repair costs, maintenance and depreciation.  General and administrative expenses for Digital product lease and maintenance decreased $6,000, primarily due to a reduction in bad debt expenses.

Corporate general and administrative expenses increased $53,000 or 13.1%, primarily due to an increase in employees’ expenses.

Net interest expense increased $2,000 or 1.4%, primarily due to an increase in interest rates.

The effective tax rate for the three months ended March 31, 2023 and 2022 was 0.7% and 1.2%, respectively.  Both the 2023 and 2022 tax rates are being affected by the valuation allowance on the Company’s deferred tax assets as a result of reporting pre-tax losses.

Liquidity and Capital Resources

Current Liquidity

The Company has incurred significant recurring losses and continues to have a significant working capital deficiency including being in default on several debt obligations.  The Company recorded a loss of $858,000 in the three months ended March 31, 2023.  The Company had working capital deficiencies of $9.9 million and $9.3 million as of March 31, 2023 and December 31, 2022, respectively.  The increase in the working capital deficiency was primarily affected by decreases in inventories and prepaids and other assets, as well as increases in accounts payable and accrued liabilities.  These changes were partially offset by increases in receivables and cash, as well as decreases in customer deposits and current lease liabilities.

The Company is dependent on future operating performance in order to generate sufficient cash flows in order to continue to run its businesses.  Future operating performance is dependent on general economic conditions, as well as financial, competitive and other factors beyond our control, including the impact of the current economic environment, the spread of major epidemics (including coronavirus) and other related uncertainties such as government imposed travel restrictions, interruptions to supply chains, extended shut down of businesses and the impact of inflation.  In order to more effectively manage its cash resources, the Company had, from time to time, increased the timetable of its payment of some of its payables, which delayed certain product deliveries from our vendors, which in turn delayed certain deliveries to our customers.

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There is substantial doubt as to whether we will have adequate liquidity, including access to the debt and equity capital markets, to continue as a going concern over the next 12 months from the date of issuance of this Form 10-Q.  The Company continually evaluates the need and availability of long-term capital in order to meet its cash requirements and fund potential new opportunities.

The Company generated cash of $1,000 and used cash of $828,000 from operating activities for the three months ended March 31, 2023 and 2022, respectively.  The Company has implemented several initiatives to improve operational results and cash flows over future periods, including reducing head count, reorganizing its sales department and outsourcing certain administrative functions.  The Company continues to explore ways to reduce operational and overhead costs.  The Company periodically takes steps to reduce the cost to maintain the digital products on lease and maintenance agreements.

Cash and cash equivalents increased $2,000 in the three months ended March 31, 2023 to $50,000 at March 31, 2023 from $48,000 at December 31, 2022.  The increase is primarily attributable to cash provided by operating activities of $1,000.  The current economic environment has increased the Company’s trade receivables collection cycle, and its allowances for uncollectible accounts receivable, but collections continue to be favorable.

Under various agreements, the Company is obligated to make future cash payments in fixed amounts.  These include payments under the Company’s current and long-term debt agreements, pension plan minimum required contributions, employment agreement payments and rent payments required under operating lease agreements.  The Company has both variable and fixed interest rate debt.  Interest payments are projected based on actual interest payments incurred in 2023 until the underlying debts mature.  As interest rates have increased in 2023, and may continue to increase, the amounts the Company pays for interest could exceed the projected amounts.

The following table summarizes the Company’s fixed cash obligations as of March 31, 2023 for the remainder of 2023 and over the next four fiscal years:

In thousands	Remainder of 2023		2024		2025		2026		2027
Long-term debt, including interest	$	5,204	$	31	$	31	$	31	$	31
Pension plan payments		-		702		364		323		298
Estimated warranty liability		327		80		60		50		36
Operating lease payments		452		146		149		152		13
Total	$	5,983	$	959	$	604	$	556	$	378

As of March 31, 2023, the Company had outstanding $302,000 of Notes which matured as of March 1, 2012.  The Company also had outstanding $220,000 of Debentures which matured on December 1, 2012.  The Company continues to consider future exchanges of the Notes and Debentures, but has no agreements, commitments or understandings with respect to any further such exchanges.

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The Company may still seek additional financing in order to provide enough cash to cover our remaining current fixed cash obligations as well as providing working capital.  However, there can be no assurance as to the amounts, if any, the Company will receive in any such financing or the terms thereof.  The Company has no agreements, commitments or understandings with respect to any such financings.  To the extent the Company issues additional equity securities, it could be dilutive to existing shareholders.

For a further description of the Company’s long-term debt, see Note 7 to the Condensed Consolidated Financial Statements – Long-Term Debt.

Pension Plan Contributions

There is not expected to be a minimum required pension plan contribution for 2023.  See Note 8 to the Condensed Consolidated Financial Statements – Pension Plan for further details.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

The Company may, from time to time, provide estimates as to future performance.  These forward-looking statements will be estimates and may or may not be realized by the Company.  The Company undertakes no duty to update such forward-looking statements.  Many factors could cause actual results to differ from these forward-looking statements, including loss of market share through competition, introduction of competing products by others, pressure on prices from competition or purchasers of the Company’s products, interest rate and foreign exchange fluctuations, the impact of inflation, terrorist acts and war.

Item 3.             Quantitative and Qualitative Disclosures about Market Risk

The Company is subject to interest rate risk on its long-term debt.  The Company manages its exposure to changes in interest rates by the use of variable and fixed interest rate debt.  The fair value of the Company’s fixed rate long-term debt is disclosed in Note 7 to the Condensed Consolidated Financial Statements – Long-Term Debt.  Every 1-percentage-point change in interest rates would result in an annual interest expense fluctuation of approximately $22,000.  In addition, the Company is exposed to foreign currency exchange rate risk mainly as a result of its investment in its Canadian subsidiary. A 10% change in the Canadian dollar relative to the U.S. dollar would result in a currency remeasurement expense fluctuation of approximately $244,000, based on dealer quotes, considering current exchange rates.  The Company does not enter into derivatives for trading or speculative purposes and did not hold any derivative financial instruments at March 31, 2023.

Item 4.             Controls and Procedures

Evaluation of Disclosure Controls and Procedures.  As required by Rule 13a-15 under the Securities Exchange Act of 1934, as of the end of the period covered by this report, we have carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer (our principal executive officer) and our Chief Accounting Officer (our principal accounting officer), of the effectiveness of the design and operation of our disclosure controls and procedures.  Our Chief Executive Officer and Chief Accounting Officer have concluded that our disclosure controls and procedures are effective to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC and that such information is accumulated and communicated to our management (including our Chief Executive Officer and our Chief Accounting Officer) to allow timely decisions regarding required disclosures.  Based on such evaluation, our Chief Executive Officer and Chief Accounting Officer have concluded that these disclosure controls are effective as of March 31, 2023.

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Changes in Internal Control over Financial Reporting.  There has been no change in the Company’s internal control over financial reporting that occurred in the quarter ended March 31, 2023 that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

Part II – Other Information

Item 1.             Legal Proceedings

The Company is subject to legal proceedings and claims which arise in the ordinary course of its business and/or which are covered by insurance.  The Company has accrued reserves individually and in the aggregate for such legal proceedings.  Should actual litigation results differ from the Company’s estimates, revisions to increase or decrease the accrued reserves may be required.  There are no open matters that the Company deems material.

Item 1A.          Risk Factors

The Company is subject to a number of risks including general business and financial risk factors.  Any or all of such factors could have a material adverse effect on the business, financial condition or results of operations of the Company.  You should carefully consider the risk factors identified in our Annual Report on Form 10-K for the year ended December 31, 2022.

Item 2.             Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3.             Defaults upon Senior Securities

As disclosed in Note 7 to the Condensed Consolidated Financial Statements – Long-Term Debt, the Company had outstanding $302,000 of Notes which are no longer convertible into common shares.  The Notes matured as of March 1, 2012 and are currently in default.  As of March 31, 2023 and December 31, 2022, the Company had accrued $338,000 and $332,000, respectively, of interest related to the Notes, which is included in accrued liabilities in the Condensed Consolidated Balance Sheets.

22

As disclosed in Note 7 to the Condensed Consolidated Financial Statements – Long-Term Debt, the Company has outstanding $220,000 of Debentures.  The Debentures matured as of December 1, 2012 and are currently in default.  As of March 31, 2023 and December 31, 2022, the Company had accrued $279,000 and $273,000, respectively, of interest related to the Debentures, which is included in accrued liabilities in the Condensed Consolidated Balance Sheets.  The trustee, by notice to the Company, or the holders of 25% of the principal amount of the Debentures outstanding, by notice to the Company and the trustee, may declare the outstanding principal plus interest due and payable immediately.

Item 4.             Mine Safety Disclosures

Not applicable.

Item 5.             Other Information

None.

Item 6.             Exhibits

10.1     1^st Modification Agreement to Loan and Security Agreement with Unilumin USA dated as of March 20, 2023 and effective December 31, 2022 (incorporated by reference to Exhibit 10.10 of Form 10-K filed March 31, 2023).

31.1     Certification of Nicholas J. Fazio, Chief Executive Officer, pursuant to Rule 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith.

31.2     Certification of Todd Dupee, Senior Vice President and Chief Accounting Officer, pursuant to Rule 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith.

32.1     Certification of Nicholas J. Fazio, Chief Executive Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed herewith.

32.2     Certification of Todd Dupee, Senior Vice President and Chief Accounting Officer,  pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed herewith.

101      The following financial information from the Company’s Form 10-Q for the quarterly period ended March 31, 2023 formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Comprehensive Income, (iii) Condensed Consolidated Statements of Cash Flows, (iv) Condensed Consolidated Statements of Changes in Stockholders’ Deficit, and (v) Notes to Condensed Consolidated Financial Statements.

104      Cover Page Interactive Data File (formatted as inline XBRL with applicable taxonomy extension information contained in Exhibits 101.)

23

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	TRANS-LUX CORPORATION
	(Registrant)
	by	/s/  Nicholas J. Fazio
		Nicholas J. Fazio
		Chief Executive Officer
	by	/s/  Todd Dupee
		Todd Dupee
		Senior Vice President and Chief Accounting Officer
Date:  May 15, 2023

24

EX-31.1

EXHIBIT 31.1

TRANS-LUX CORPORATION

CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER

PURSUANT TO RULE 13a-14(a) UNDER THE EXCHANGE ACT

I, Nicholas J. Fazio, certify that:

1.         I have reviewed this quarterly report on Form 10-Q of Trans-Lux Corporation for the quarter ended March 31, 2023;

2.         Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.         Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant, as of, and for, the periods presented in this report;

4.         I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15 (e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15 (f) and 15d-15(f)) for the registrant and have:

a)        designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to me by others within those entities, particularly during the period in which this report is being prepared;

b)         designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under my supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)         evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report my conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)         disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.         I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a)         all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b)         any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

	/s/ Nicholas J. Fazio
Date: May 15, 2023	Nicholas J. Fazio
	Chief Executive Officer
	(Principal Executive Officer)

EX-31.2

EXHIBIT 31.2

TRANS-LUX CORPORATION

CERTIFICATION OF THE CHIEF ACCOUNTING OFFICER

PURSUANT TO RULE 13a-14(a) UNDER THE EXCHANGE ACT

I, Todd Dupee, certify that:

1.         I have reviewed this quarterly report on Form 10-Q of Trans-Lux Corporation for the quarter ended March 31, 2023;

2.         Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.         Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant, as of, and for, the periods presented in this report;

4.         I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15 (e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15 (f) and 15d-15(f)) for the registrant and have:

a)        designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to me by others within those entities, particularly during the period in which this report is being prepared;

b)         designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under my supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)         evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report my conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)         disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.         I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a)         all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b)         any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

	/s/ Todd Dupee
Date: May 15, 2023	Todd Dupee
	Senior Vice President and Chief Accounting Officer
	(Principal Financial Officer)

EX-32.1

EXHIBIT 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18, United States Code), I, Nicholas J. Fazio, Chief Executive Officer of Trans-Lux Corporation (the "Registrant"), do hereby certify, to the best of my knowledge that:

(1) The Registrant's Annual Report on Form 10-Q for the quarter ended March 31, 2023 being filed with the Securities and Exchange Commission (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

This Certification accompanies this Form 10-Q as an exhibit, but shall not be deemed as having been filed for purposes of Section 18 of the Securities Exchange Act of 1934 or as a separate disclosure document of the Registrant or the certifying officer.

	/s/ Nicholas J. Fazio
Date: May 15, 2023	Nicholas J. Fazio
	Chief Executive Officer
	(Principal Executive Officer)

EX-32.2

EXHIBIT 32.2

CERTIFICATION OF CHIEF ACCOUNTING OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18, United States Code), I, Todd Dupee, Senior Vice President and Chief Accounting Officer of Trans-Lux Corporation (the "Registrant"), do hereby certify, to the best of my knowledge that:

(1) The Registrant's Annual Report on Form 10-Q for the quarter ended March 31, 2023 being filed with the Securities and Exchange Commission (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

This Certification accompanies this Form 10-Q as an exhibit, but shall not be deemed as having been filed for purposes of Section 18 of the Securities Exchange Act of 1934 or as a separate disclosure document of the Registrant or the certifying officer.

	/s/ Todd Dupee
Date: May 15, 2023	Todd Dupee
	Senior Vice President and Chief Accounting Officer
	(Principal Financial Officer)

XML

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2023	May 12, 2023
Document Information Line Items
Entity Registrant Name	TRANS-LUX CORPORATION
Document Type	10-Q
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		13,496,276
Amendment Flag	false
Entity Central Index Key	0000099106
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Document Period End Date	Mar. 31, 2023
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	1-2257
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	13-1394750
Entity Address, Address Line One	254 West 31st Street
Entity Address, Address Line Two	12th Floor
Entity Address, City or Town	New York
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10001
City Area Code	800
Local Phone Number	243-5544
Entity Interactive Data Current	Yes
Title of 12(g) Security	Common Stock - $0.001 Par Value

XML

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 50,000	$ 48,000
Receivables, net	2,983,000	2,832,000
Inventories	2,214,000	2,722,000
Prepaids and other assets	1,050,000	1,071,000
Total current assets	6,297,000	6,673,000
Long-term assets:
Rental equipment, net	196,000	225,000
Property, plant and equipment, net	1,652,000	1,715,000
Right of use assets	660,000	765,000
Other assets	34,000	34,000
Total long-term assets	2,542,000	2,739,000
TOTAL ASSETS	8,839,000	9,412,000
Current liabilities:
Accounts payable	6,762,000	6,339,000
Accrued liabilities	4,336,000	4,279,000
Current portion of long-term debt	3,768,000	3,768,000
Current lease liabilities	313,000	393,000
Customer deposits	989,000	1,183,000
Total current liabilities	16,168,000	15,962,000
Long-term liabilities:
Long-term debt, less current portion	500,000	500,000
Long-term lease liabilities	383,000	412,000
Deferred pension liability and other	2,925,000	2,862,000
Total long-term liabilities	3,808,000	3,774,000
Total liabilities	19,976,000	19,736,000
Stockholders' deficit:
Preferred Stock Series A - $20 stated value - 416,500 shares authorized; shares issued and outstanding: 0 in 2022 and 2021 and Preferred Stock Series B - $200 stated value - 51,000 shares authorized;shares issued and outstanding: 0 in 2022 and 2021
Common Stock - $0.001 par value - 30,000,000 shares authorized; shares issued: 13,474,116 in 2022 and 2021; shares outstanding: 13,446,276 in 2022 and 2021	13,000	13,000
Additional paid-in-capital	41,482,000	41,444,000
Accumulated deficit	(43,510,000)	(42,652,000)
Accumulated other comprehensive loss	(6,059,000)	(6,066,000)
Treasury stock - at cost - 27,840 common shares in 2022 and 2021	(3,063,000)	(3,063,000)
Total stockholders' deficit	(11,137,000)	(10,324,000)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	8,839,000	9,412,000
Convertible Preferred Stock [Member] | Series A Preferred Stock [Member]
Stockholders' deficit:
Preferred Stock Series A - $20 stated value - 416,500 shares authorized; shares issued and outstanding: 0 in 2022 and 2021 and Preferred Stock Series B - $200 stated value - 51,000 shares authorized;shares issued and outstanding: 0 in 2022 and 2021
Convertible Preferred Stock [Member] | Series B Preferred Stock [Member]
Stockholders' deficit:
Preferred Stock Series A - $20 stated value - 416,500 shares authorized; shares issued and outstanding: 0 in 2022 and 2021 and Preferred Stock Series B - $200 stated value - 51,000 shares authorized;shares issued and outstanding: 0 in 2022 and 2021

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares	Mar. 31, 2023	Dec. 31, 2022
Common Stock, par value (in Dollars per share)	$ 0.001	$ 0.001
Common Stock, shares authorized	30,000,000	30,000,000
Common Stock, shares issued	13,474,116	13,474,116
Common Stock, shares outstanding	13,446,276	13,446,276
Treasury Stock, shares	27,840	27,840
Convertible Preferred Stock [Member] | Series A Preferred Stock [Member]
Preferred Stock, par value (in Dollars per share)	$ 20	$ 20
Preferred stock, shares authorized	416,500	416,500
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Convertible Preferred Stock [Member] | Series B Preferred Stock [Member]
Preferred Stock, par value (in Dollars per share)	$ 200	$ 200
Preferred stock, shares authorized	51,000	51,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0

XML

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Revenues:
Revenues	$ 4,349,000	$ 3,665,000
Cost of revenues:
Cost of revenues	3,908,000	3,123,000
Gross income	441,000	542,000
General and administrative expenses	(1,078,000)	(762,000)
Operating loss	(637,000)	(220,000)
Interest expense, net	(144,000)	(142,000)
Loss on foreign currency remeasurement	(8,000)	(16,000)
Gain on forgiveness of PPP loan		824,000
Pension (expense) benefit	(63,000)	53,000
(Loss) income before income taxes	(852,000)	499,000
Income tax expense	(6,000)	(6,000)
Net (loss) income	(858,000)	493,000
Digital Product Sales [Member]
Revenues:
Revenues	4,121,000	3,237,000
Cost of revenues:
Cost of revenues	3,803,000	2,958,000
Digital Product Lease And Maintenance [Member]
Revenues:
Revenues	228,000	428,000
Cost of revenues:
Cost of revenues	$ 105,000	$ 165,000

XML

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Net (loss) income	$ (858,000)	$ 493,000
Other comprehensive income:
Unrealized foreign currency translation gain	7,000	27,000
Total other comprehensive income, net of tax	7,000	27,000
Comprehensive (loss) income	$ (851,000)	$ 520,000

XML

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT (unaudited) - USD ($)	Series A Preferred Stock [Member] Preferred Stock [Member]	Series B Preferred Stock [Member] Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Treasury Stock, Common [Member]	Total
Balance at Dec. 31, 2021			$ 13,000	$ 41,330,000	$ (42,975,000)	$ (6,253,000)	$ (3,063,000)	$ (10,948,000)
Balance (in Shares) at Dec. 31, 2021			13,474,116
Net income (loss)					493,000			493,000
Other comprehensive income, net of tax:
Unrealized foreign currency translation gain						27,000		27,000
Balance at Mar. 31, 2022			$ 13,000	41,330,000	(42,482,000)	(6,226,000)	(3,063,000)	(10,428,000)
Balance (in Shares) at Mar. 31, 2022			13,474,116
Balance at Dec. 31, 2022			$ 13,000	41,444,000	(42,652,000)	(6,066,000)	(3,063,000)	(10,324,000)
Balance (in Shares) at Dec. 31, 2022			13,474,116
Net income (loss)					(858,000)			(858,000)
Issuance of options				38,000				38,000
Other comprehensive income, net of tax:
Unrealized foreign currency translation gain						7,000		7,000
Balance at Mar. 31, 2023			$ 13,000	$ 41,482,000	$ (43,510,000)	$ (6,059,000)	$ (3,063,000)	$ (11,137,000)
Balance (in Shares) at Mar. 31, 2023			13,474,116

XML

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash flows from operating activities
Net (loss) income	$ (858,000)	$ 493,000
Adjustment to reconcile net (loss) income to net cash provided by (used in) operating activities:
Depreciation and amortization	92,000	110,000
Amortization of right of use assets	105,000	97,000
Gain on forgiveness of PPP loan		(824,000)
Amortization of deferred financing fees and debt discount		32,000
Loss on foreign currency remeasurement	8,000	16,000
Amortization of stock options	38,000
Allowance for credit losses	112,000	56,000
Changes in operating assets and liabilities:
Accounts receivable	(263,000)	(309,000)
Inventories	508,000	(740,000)
Prepaids and other assets	21,000	(451,000)
Accounts payable	423,000	(365,000)
Accrued liabilities	57,000	78,000
Operating lease liabilities	(109,000)	(87,000)
Customer deposits	(194,000)	1,128,000
Deferred pension liability and other	61,000	(62,000)
Net cash provided by (used in) operating activities	1,000	(828,000)
Cash flows from investing activities
Purchases of property, plant and equipment		(12,000)
Net cash used in investing activities		(12,000)
Cash flows from financing activities
Proceeds from long-term debt		703,000
Net cash provided by financing activities		703,000
Effect of exchange rate changes	1,000	(4,000)
Net increase (decrease) in cash and cash equivalents	2,000	(141,000)
Cash and cash equivalents at beginning of year	48,000	524,000
Cash and cash equivalents at end of period	50,000	383,000
Supplemental disclosure of cash flow information:
Interest paid
Income taxes paid	$ 10,000	$ 10,000

XML

Basis of Presentation

3 Months Ended

Mar. 31, 2023

Basis of Presentation [Line Items]

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

Note 1 – Basis of Presentation

As used in this report, “Trans-Lux,” the “Company,” “we,” “us,” and “our” refer to Trans-Lux Corporation and its subsidiaries.

Financial information included herein is unaudited, however, such information reflects all adjustments (of a normal and recurring nature), which are, in the opinion of management, necessary for the fair presentation of the Condensed Consolidated Financial Statements for the interim periods. The results for the interim periods are not necessarily indicative of the results to be expected for the full year.  The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with rule 10-01 of Regulation S-X promulgated by the Securities and Exchange Commission (the “SEC”) and therefore do not include all information and footnote disclosures required under accounting principles generally accepted in the United States of America (“GAAP”).  The Condensed Consolidated Financial Statements included herein should be read in conjunction with the Consolidated Financial Statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.  The Condensed Consolidated Balance Sheet at December 31, 2022 is derived from the December 31, 2022 audited financial statements.

Critical Accounting Policies and Estimates

Accounting policies used in the preparation of our financial statements may involve the use of management judgments and estimates.  Certain of our accounting policies are considered critical as they are both important to the portrayal of our financial statements and require significant or complex judgments on the part of management.  Our judgments and estimates are based on experience and assumptions that we believe are reasonable under the circumstances.  Further, we evaluate our judgments and estimates from time to time as circumstances change.  Actual financial results based on judgments or estimates may vary under different assumptions or circumstances.  Our critical accounting policies are discussed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022, filed with the Securities and Exchange Commission on March 31, 2023.

The following new accounting pronouncements were adopted in 2023:

In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.”  ASU 2016-13 requires that entities use a new forward looking “expected loss” model that generally will result in the earlier recognition of allowance for credit losses.  The measurement of expected credit losses is based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount.  ASU No. 2016-13 is effective for annual reporting periods, including interim reporting periods within those periods, beginning after December 15, 2022.  The Company adopted the new guidance on January 1, 2023 and determined it did not have a material impact on its consolidated financial statements.

The following new accounting pronouncements, and related impacts on adoption, are being evaluated by the Company:

None.

XML

Liquidity and Going Concern

3 Months Ended

Mar. 31, 2023

Liquidity and Going Concern [Line Items]

Substantial Doubt about Going Concern [Text Block]

Note 2 – Liquidity and Going Concern

A fundamental principle of the preparation of financial statements in accordance with GAAP is the assumption that an entity will continue in existence as a going concern, which contemplates continuity of operations and the realization of assets and settlement of liabilities occurring in the ordinary course of business.  This principle is applicable to all entities except for entities in liquidation or entities for which liquidation appears imminent.  In accordance with this requirement, the Company has prepared its accompanying Condensed Consolidated Financial Statements assuming the Company will continue as a going concern.

The Company has incurred recurring operating losses and continues to have a working capital deficiency including being in default of several debt obligations.  The Company recorded a loss of $858,000 in the three months ended March 31, 2023, and had a working capital deficiency of $9.9 million as of March 31, 2023.  As of December 31, 2022, the Company had a working capital deficiency of $9.3 million.

The Company is dependent on future operating performance in order to generate sufficient cash flows in order to continue to run its businesses.  Future operating performance is dependent on general economic conditions, as well as financial, competitive and other factors beyond our control, including the impact of the current economic environment, the spread of major epidemics (including coronavirus), increases in interest rates and other related uncertainties such as government-imposed travel restrictions, interruptions to supply chains, extended shut down of businesses and the impact of inflation.  In order to more effectively manage its cash resources, the Company had, from time to time, increased the timetable of its payment of some of its payables, which delayed certain product deliveries from our vendors, which in turn delayed certain deliveries to our customers.

If we are unable to (i) obtain additional liquidity for working capital, (ii) make the required minimum funding contributions to the defined benefit pension plan, (iii) make the required principal and interest payments on our outstanding 8¼% Limited convertible senior subordinated notes due 2012 (the “Notes”) and 9½% Subordinated debentures due 2012 (the “Debentures”), (iv) repay our obligations under our Loan Agreement (hereinafter defined) with Unilumin and/or (v) repay our obligations under our loan agreements with Carlisle, there would be a significant adverse impact on our financial position and operating results.  The Company continually evaluates the need and availability of long-term capital in order to meet its cash requirements and fund potential new opportunities.  Due to the above, there is substantial doubt as to whether we will have adequate liquidity, including access to the debt and equity capital markets, to continue as a going concern over the next 12 months from the date of issuance of this Form 10-Q.

XML

Revenue Recognition

3 Months Ended

Mar. 31, 2023

Revenue Recognition [Line Items]

Revenue from Contract with Customer [Text Block]

Note 3 – Revenue Recognition

We recognize revenue in accordance with two different accounting standards: 1) Accounting Standards Codification (“ASC”) Topic 606 and 2) ASC Topic 842.  Under Topic 606, revenue from contracts with customers is measured based on the consideration specified in the contract with the customer, and excludes any sales incentives and amounts collected on behalf of third parties.  A performance obligation is a promise in a contract to transfer a distinct good or service to a customer, and is the unit of account under Topic 606.  Our contracts with customers generally do not include multiple performance obligations.  We recognize revenue when we satisfy a performance obligation by transferring control over a product or service to a customer.  The amount of revenue recognized reflects the consideration we expect to be entitled to in exchange for such products or services.  None of the Company’s contracts contained a significant financing component as of March 31, 2023.  Revenue from the Company’s digital product and maintenance service is recognized ratably over the lease term in accordance with ASC Topic 842.

Disaggregated Revenues

The following table represents a disaggregation of revenue from contracts with customers for the three months ended March 31, 2023 and 2023, along with the reportable segment for each category:

	For the Three Months Ended
In thousands	March 31, 2023		March 31, 2022
Digital product sales:
Catalog and small customized products	$	4,121	$	3,237
Large customized products		-		-
Subtotal		4,121		3,237
Digital product lease and maintenance:
Operating leases		131		171
Maintenance agreements		97		257
Subtotal		228		428
Total	$	4,349	$	3,665

The Company has two primary revenue streams which are Digital product sales and Digital product lease and maintenance.

Digital Product Sales

The Company recognizes net revenue on digital product sales to its distribution partners and to end users related to digital display solutions and fixed digit scoreboards.  For the Company’s catalog products, revenue is generally recognized when the customer obtains control of the Company’s product, which occurs at a point in time, and may be upon shipment or upon delivery based on the contractual shipping terms of a contract.  For the Company’s customized products, revenue is either recognized at a point in time or over time depending on the length of the contract.  For those customized product contracts that are smaller in size, revenue is generally recognized when the customer obtains control of the Company’s product, which occurs at a point in time, and may be upon shipment or upon delivery based on the contractual shipping terms of a contract.  For those customized product contracts that are larger in size, revenue is recognized over time based on incurred costs as compared to projected costs using the input method, as this best reflects the Company’s progress in transferring control of the customized product to the customer.  The Company may also contract with a customer to perform installation services of digital display products.  Similar to the larger customized products, the Company recognizes the revenue associated with installation services using the input method, whereby the basis is the total contract costs incurred to date compared to the total expected costs to be incurred.

Revenue on sales to distribution partners are recorded net of prompt-pay discounts, if offered, and other deductions.  To the extent the transaction price includes variable consideration, the Company estimates the amount of variable consideration that should be included in the transaction price utilizing the most likely amount method to which the Company expects to be entitled.  In the case of prompt-pay discounts, there are only two possible outcomes: either the customer pays on-time or does not.  Variable consideration is included in the transaction price if, in the Company’s judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur.  Determination of whether to include estimated amounts in the transaction price are based largely on an assessment of the Company’s anticipated performance and all information (historical, current and forecasted) that is reasonably available.  The Company believes that the estimates it has established are reasonable based upon current facts and circumstances.  Applying different judgments to the same facts and circumstances could result in the estimated amounts to vary.  The Company offers an assurance-type warranty that the digital display products will conform to the published specifications.  Returns may only be made subject to this warranty and not for convenience.

Digital Product Lease and Maintenance

Digital product lease revenues represent revenues from leasing equipment that we own.  We do not generally provide an option for the lessee to purchase the rented equipment at the end of the lease and do not generate material revenue from sales of equipment under such options.  Our lease revenues do not include material amounts of variable payments.  Digital product maintenance revenues represent revenues from maintenance agreements for equipment that we do not own.  Lease and maintenance contracts generally run for periods of one month to 10 years.  A contract entered into by the Company with a customer may contain both lease and maintenance services (either or both services may be agreed upon based on the individual customer contract).  Maintenance services may consist of providing labor, parts and software maintenance as may be required to maintain the customer’s equipment in proper operating condition at the customer’s service location.  The Company concluded the lease and maintenance services represent a series of distinct services and the most representative method for measuring progress towards satisfying the performance obligation of these services is the input method.  Additionally, maintenance services require the Company to “stand ready” to provide support to the customer when and if needed.  As there is no discernable pattern of efforts other than evenly over the lease and maintenance terms, the Company will recognize revenue straight-line over the lease and maintenance terms of service.

The Company has an enforceable right to payment for performance completed to date, as evidenced by the requirement that the customer pay upfront for each month of services. Lease and maintenance service amounts billed ahead of revenue recognition are recorded in deferred revenue and are included in accrued liabilities in the Condensed Consolidated Financial Statements.

Revenues from equipment lease and maintenance contracts are recognized during the term of the respective agreements.  At March 31, 2023, the future minimum lease payments due to the Company under operating leases that expire at varying dates through 2030 for its rental equipment and maintenance contracts, assuming no renewals of existing leases or any new leases, aggregating $1,641,000 are as follows:  $466,000 – remainder of 2023, $391,000 – 2024, $305,000 – 2025, $235,000 – 2026, $176,000 – 2027 and $68,000 thereafter.

Contract Balances with Customers

Contract assets primarily relate to rights to consideration for goods or services transferred to the customer when the right is conditional on something other than the passage of time.  The contract assets are transferred to the receivables when the rights become unconditional.  As of March 31, 2023 and December 31, 2022, the Company had no contract assets.  The contract liabilities primarily relate to the advance consideration received from customers for contracts prior to the transfer of control to the customer and therefore revenue is recognized on completion of delivery.  Contract liabilities are classified as deferred revenue by the Company and are included in customer deposits and accrued liabilities in the Condensed Consolidated Balance Sheets.

The following table presents the balances in the Company’s receivables and contract liabilities with customers:

In thousands	March 31, 2023		December 31, 2022
Gross receivables	$	3,378	$	3,123
Allowance for credit losses		395		291
Net receivables		2,983		2,832
Contract liabilities		1,133		1,229

During the three months ended March 31, 2023 and 2022, the Company recognized the following revenues as a result of changes in the contract asset and the contract liability balances in the respective periods:

	For the Three Months Ended
In thousands	March 31, 2023		March 31, 2022
Revenue recognized in the period from:
Amounts included in the contract liability at the beginning of the period	$	367	$	344
Performance obligations satisfied in previous periods (for example, due to changes in transaction price)	$	-	$	-

Transaction Price Allocated to Future Performance Obligations

As of March 31, 2023, the aggregate amount of the transaction price allocated to remaining performance obligations for digital product sales was $1.7 million and digital product lease and maintenance was $1.6 million.  

The Company expects to recognize revenue on approximately 68%, 20% and 12% of the remaining performance obligations over the next 12 months, 13 to 36 months and 37 or more months, respectively.

Costs to Obtain or Fulfill a Customer Contract

The Company capitalizes incremental costs of obtaining customer contracts.  Capitalized commissions are amortized based on the transfer of the products or services to which the assets relate.  Applying the practical expedient, the Company recognizes the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that the Company otherwise would have recognized is one year or less.  These costs are included in General and administrative expenses.

The Company accounts for shipping and handling activities related to contracts with customers as costs to fulfill the promise to transfer the associated products.  When shipping and handling costs are incurred after a customer obtains control of the products, the Company also has elected to account for these as costs to fulfill the promise and not as a separate performance obligation.  Shipping and handling costs associated with the distribution of finished products to customers are recorded in costs of goods sold and are recognized when the related finished product is shipped to the customer.

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Inventories

3 Months Ended

Mar. 31, 2023

Inventories [Line Items]

Inventory Disclosure [Text Block]

Note 4 – Inventories

Inventories consist of the following:

	March 31 2023			December 31 2022
In thousands
Raw materials		$	1,827	$	2,535
Work-in-progress			-		-
Finished goods			387		187
		$	2,214	$	2,722

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Rental Equipment, net

3 Months Ended

Mar. 31, 2023

Rental Equipment, net [Line Items]

Rental Equipment [Text Block]

Note 5 – Rental Equipment, net

Rental equipment consists of the following:

	March 31 2023			December 31 2022
In thousands
Rental equipment		$	2,077	$	2,077
Less accumulated depreciation			1,881		1,852
Net rental equipment		$	196	$	225

Depreciation expense for rental equipment for the three months ended March 31, 2023 and 2022 was $29,000 and $47,000, respectively.

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Property, Plant and Equipment, net

3 Months Ended

Mar. 31, 2023

Property, Plant and Equipment, net [Line Items]

Property, Plant and Equipment Disclosure [Text Block]

Note 6 – Property, Plant and Equipment, net

Property, plant and equipment consists of the following:

In thousands	March 31 2023		December 31 2022
Machinery, fixtures and equipment	$	2,856	$	2,856
Leaseholds and improvements		23		23
		2,879		2,879
Less accumulated depreciation		1,227		1,164
Net property, plant and equipment	$	1,652	$	1,715

Machinery, fixtures and equipment having a net book value of $1.7 million at both March 31, 2023 and December 31, 2022 were pledged as collateral under various financing agreements.

Depreciation expense for property, plant and equipment for both of the three months ended March 31, 2023 and 2022 was $63,000.

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Long-Term Debt

3 Months Ended

Mar. 31, 2023

Long-Term Debt [Line Items]

Long-Term Debt [Text Block]

Note 7 – Long-Term Debt

Long-term debt consists of the following:

	March 31		December 31
In thousands	2023		2022
8¼% Limited convertible senior subordinated notes due 2012	$	302	$	302
9½% Subordinated debentures due 2012		220		220
Revolving credit line – related party		2,246		2,246
Term loans – related party		1,000		1,000
Term loans		500		500
Total debt		4,268		4,268
Less deferred financing costs and debt discount		-		-
Net debt		4,268		4,268
Less portion due within one year		3,768		3,768
Net long-term debt	$	500	$	500

On September 16, 2019, the Company entered into a loan agreement (the “Loan Agreement”) with MidCap, which was subsequently modified.  On July 30, 2021, MidCap assigned the loan to Unilumin.  On March 20, 2023, the Company and Unilumin entered into a modification agreement to the Loan Agreement effective December 31, 2022.  The Loan Agreement matures on December 31, 2023.  The Loan Agreement allows the Company to borrow up to an aggregate of $2.2 million at an interest rate of the Prime Rate as published in the Wall Street Journal plus 4.75% (12.75% at March 31, 2023) on a revolving credit loan based on accounts receivable, inventory and equipment for general working capital purposes.  As of March 31, 2023, the balance outstanding under the Loan Agreement was $2.2 million.  The Loan Agreement also requires the payment of certain fees, including a facility fee, an unused credit line fee and a collateral monitoring charge.  The Loan Agreement contains financial and other covenant requirements, including financial covenants that require the Company to attain certain EBITDA amounts for certain periods, including the year ended March 31, 2023.  The Company was not in compliance with this covenant.  The Loan Agreement is secured by substantially all of the Company’s assets.

The Company entered into a loan note (the “Loan Note”) with the SBA (“Lender”) as lender under their Economic Injury Disaster Loan (“EIDL”) program, dated as of December 10, 2021.  Under the Loan Note, the Company borrowed $500,000 from Lender under the EIDL Program.  As of March 31, 2023, $500,000 was outstanding.  The loan matures on December 10, 2051 and carries an interest rate of 3.75%.  As of March 31, 2023 and December 31, 2022, the Company had accrued $24,000 and $20,000, respectively, of interest related to the Loan Note, which is included in Accrued liabilities in the Consolidated Balance Sheets.

On April 23, 2020, the Company entered into a loan note (the “Loan Note”) with Enterprise Bank and Trust (“Lender”) as lender under the CARES Act of the Small Business Administration of the United States of America (“SBA”), dated as of April 20, 2020.  Under the Loan Note, the Company borrowed $811,000 from Lender under the Paycheck Protection Program (“PPP”) included in the SBA’s CARES Act.  The Loan Note proceeds were forgivable as long as the Company uses the loan proceeds for eligible purposes including payroll costs, including salaries, commissions, and similar compensation, group health care benefits, and paid leave; rent; utilities; and maintains its payroll levels.  In January 2022, the loan was forgiven in full and the payments that had previously been paid were refunded.  Refund proceeds in the amount of $453,000 are included in proceeds from long-term debt in the accompanying condensed consolidated statements of Cash Flows for the three months ended March 31, 2022.

The Company has a $500,000 loan from Carlisle Investments Inc. (“Carlisle”) at a fixed interest rate of 12.00%, which matured on April 27, 2019 with a bullet payment of all principal due at such time.  Interest is payable monthly.  Carlisle had agreed to not demand payment on the loan through at least December 31, 2020, and has not made any such demands as of the date of this filing.  As of March 31, 2023, the entire amount was outstanding and is included in current portion of long-term debt in the Consolidated Balance Sheets.  As of March 31, 2023 and December 31, 2022, the Company had accrued $315,000 and $300,000, respectively, of interest related to this loan, which are included in accrued liabilities in the Condensed Consolidated Balance Sheets. Marco Elser, a director of the Company, exercises voting and dispositive power as investment manager of Carlisle.

The Company has an additional $500,000 loan from Carlisle at a fixed interest rate of 12.00%, which matured on December 10, 2017 with a bullet payment of all principal due at such time (the “Second Carlisle Agreement”).  Interest is payable monthly.  Carlisle had agreed to not demand payment on the loan through at least December 31, 2020, and has not made any such demands as of the date of this filing.  As of March 31, 2022, the entire amount was outstanding and is included in current portion of long-term debt Consolidated Balance Sheets.  As of March 31, 2023 and December 31, 2022, the Company had accrued $315,000 and $300,000, respectively, of interest related to this loan, which are included in accrued liabilities in the Condensed Consolidated Balance Sheets.  Under the Second Carlisle Agreement, the Company granted a security interest to Carlisle in accounts receivable, materials and intangibles relating to a certain purchase order for equipment issued in April 2017.

As of March 31, 2023 and December 31, 2022, the Company had outstanding $302,000 of Notes.  The Notes matured as of March 1, 2012 and are currently in default.  As of March 31, 2023 and December 31, 2022, the Company had accrued $338,000 and $332,000, respectively, of interest related to the Notes, which is included in Accrued liabilities in the Consolidated Balance Sheets.  The trustee, by notice to the Company, or the holders of 25% of the principal amount of the Notes outstanding, by notice to the Company and the trustee, may declare the outstanding principal plus interest due and payable immediately.

As of March 31, 2023 and December 31, 2022, the Company had outstanding $220,000 of Debentures.  The Debentures matured as of December 1, 2012 and are currently in default.  As of March 31, 2023 and December 31, 2022, the Company had accrued $279,000 and $273,000, respectively, of interest related to the Debentures, which is included in Accrued liabilities in the Consolidated Balance Sheets.  The trustee, by notice to the Company, or the holders of 25% of the principal amount of the Debentures outstanding, by notice to the Company and the trustee, may declare the outstanding principal plus interest due and payable immediately.

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Pension Plan

3 Months Ended

Mar. 31, 2023

Pension Plan [Line Items]

Retirement Benefits [Text Block]

Note 8 – Pension Plan

As of December 31, 2003, the benefit service under the pension plan had been frozen and, accordingly, there is no service cost.  As of April 30, 2009, the compensation increments had been frozen and, accordingly, no additional benefits are being accrued under the pension plan.

The following table presents the components of net periodic pension cost:

	Three months ended March 31
In thousands	2023		2022
Interest cost	$	134	$	76
Expected return on plan assets		(145)		(200)
Amortization of net actuarial loss		74		71
Net periodic pension benefit	$	63	$	(53)

As of both March 31, 2023 and December 31, 2022, all pension contributions were due more than one year from the respective reporting dates, so the Company did not record a current pension liability.  As of both March 31, 2023 and December 31, 2022, the Company recorded a long-term pension liability of $2.9 million, which is included in deferred pension liability and other in the Condensed Consolidated Balance Sheets.  There is not expected to be a minimum required contribution in 2023.

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Leases

3 Months Ended

Mar. 31, 2023

Leases [Line Items]

Lessee, Operating Leases [Text Block]

Note 9 – Leases

The Company leases administrative and manufacturing facilities through operating lease agreements. The Company has no finance leases as of March 31, 2023.  Our leases include both lease (e.g., fixed payments including rent) and non-lease components (e.g., common area or other maintenance costs). The facility leases include one or more options to renew.  The exercise of lease renewal options is typically at our sole discretion, therefore, the renewals to extend the lease terms are not included in our right of use (“ROU”) assets or lease liabilities as they are not reasonably certain of exercise.  We regularly evaluate the renewal options and, when they are reasonably certain of exercise, we include the renewal period in our lease term.

Operating leases result in the recognition of ROU assets and lease liabilities on the Condensed Consolidated Balance Sheets.  ROU assets represent our right to use the leased asset for the lease term and lease liabilities represent our obligation to make lease payments.  Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term.  As most of our leases do not provide an implicit rate, we use our estimated incremental borrowing rate at the commencement date to determine the present value of lease payments.  Most real estate leases include one or more options to renew, with renewal terms that can extend the lease term from 1 to 5 years or more.  Lease expense is recognized on a straight-line basis over the lease term.  Leases with an initial term of 12 months or less are not recorded on the Condensed Consolidated Balance Sheets.  The primary leases we enter into with initial terms of 12 months or less are for equipment.

Supplemental information regarding leases:

	March 31
In thousands, unless otherwise noted	2023
Balance Sheet:
ROU assets	$	660
Current lease liabilities – operating		313
Non-current lease liabilities - operating		383
Total lease liabilities		696
Weighted average remaining lease term (years)		1.5
Weighted average discount rate		7.5%
Future minimum lease payments:
Remainder of 2023	$	314
2024		146
2025		149
2026		152
2027		12
Thereafter		-
Total		773
Less: Imputed interest		77
Total lease liabilities		696
Less: Current lease liabilities		313
Long-term lease liabilities	$	383

Supplemental cash flow information regarding leases:

	For the three months ended
In thousands	March 31, 2023
Operating cash flow information:
Cash paid for amounts included in the measurement of lease liabilities	$	124
Non-cash activity:
ROU assets obtained in exchange for lease liabilities		-

Total operating lease expense was $119,000 and $130,000 for the three months ended March 31, 2023 and 2022, respectively.  There was no short-term lease expense for the three months ended March 31, 2023 and 2022.

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Stockholders' Deficit and Income (Loss) Per Share

3 Months Ended

Mar. 31, 2023

Stockholders' Deficit and Income (Loss) Per Share [Line Items]

Equity [Text Block]

Note 10 – Stockholders’ Deficit and Income (Loss) Per Share

The following table presents the calculation of income (loss) per share for the three months ended March 31, 2023 and 2022:

Three months ended March 31
In thousands, except per share data	2023		2022
Numerator:
Net (loss) income, as reported	$	(858)	$	493
Denominator:
Weighted average shares outstanding – basic		13,446		13,446
Weighted average shares outstanding – diluted		13,470		13,531
Basic and diluted (loss) earnings per share – basic and diluted	$	(0.06)	$	0.04

Basic earnings (loss) per common share is computed by dividing net income (loss) attributable to common shares by the weighted average number of common shares outstanding for the period.  Diluted earnings (loss) per common share is computed by dividing net income (loss) attributable to common shares, by the weighted average number of common shares outstanding, adjusted for shares that would be assumed outstanding after warrants and stock options vested under the treasury stock method.

On March 28, 2022, the Company issued stock options to purchase 280,000 shares to executives and employees at an exercise price of $0.40 per share, which became vested on March 28, 2023.  The options were valued at the grant date using the Black-Scholes model with the following inputs:  expiration date March 28, 2026; risk-free rate of return 2.55%; and volatility 108%.

As of March 31, 2023, the Company excluded the effects of the outstanding stock options to purchase 280,000 shares in the calculation of diluted loss per share since their inclusion would have been anti-dilutive.  As of March 31, 2023 and 2022, the Company had other warrants to purchase 1.6 million shares of Common Stock outstanding, which were excluded from the calculation of diluted income (loss) per share because their exercise price was greater than the average stock price for the period and their inclusion would have been anti-dilutive.

A summary of the status of the Company’s stock options as of March 31, 2023 and the changes during the three months then ended is presented below:

	Number of Options	Weighted Average  Exercise Price		Weighted average remaining contractual life (in years)	Average intrinsic  value
Outstanding at December 31, 2022	280,000	$	0.40	3.3	$	0.19
Granted	-		-
Expired	-		-
Outstanding at March 31, 2023	280,000	$	0.40	3.0	$	0.19
Exercisable at the end of the period	280,000	$	0.40	3.0	$	0.19

Equity based compensation was $38,000 for the three months ended March 31, 2023.  There was no equity based compensation for the three months ended March 31, 2022.  There is no more unrecognized equity based compensation cost related to unvested stock options as of March 31, 2023.

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Contingencies

3 Months Ended

Mar. 31, 2023

Contingencies [Line Items]

Commitments and Contingencies Disclosure [Text Block]

Note 11 – Contingencies

The Company is subject to legal proceedings and claims which arise in the ordinary course of its business and/or which are covered by insurance.  The Company has accrued reserves individually and in the aggregate for such legal proceedings.  Should actual litigation results differ from the Company’s estimates, revisions to increase or decrease the accrued reserves may be required.  There are no open matters that the Company deems material.

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Related Party Transactions

3 Months Ended

Mar. 31, 2023

Related Party Transactions [Line Items]

Related Party Transactions Disclosure [Text Block]

Note 12 – Related Party Transactions

The Company has the following related party transactions:

As of March 31, 2023, Unilumin USA (“Unilumin”) owns 52.0% of the Company’s Common Stock and beneficially owns 53.7% of the Company’s Common Stock.  Nicholas J. Fazio, Yang Liu and Yantao Yu, each directors of the Company, are each directors and/or officers of Unilumin.  Mr. Fazio and Mr. Yu are both executive officers of the Company, but had not yet been added to the Company’s payroll until January 2023 at annual rates of compensation of $125,000 and $26,000, respectively.  In 2022 and prior, they had been compensated solely by Unilumin, with no charge to the Company.  In 2023, they continue to receive some compensation directly from Unilumin.  The Company purchased $472,000 and $1.1 million of product from Unilumin in the three months ended March 31, 2023 and 2022, respectively.  The total amount payable by the Company to Unilumin, including accounts payable, accrued interest and long-term debt, was $7.6 million and $7.3 million as of March 31, 2023 and December 31, 2022, respectively.

Marco Elser, a director of the Company, exercises voting and dispositive power as investment manager of Carlisle.  The total amount payable by the Company to Carlisle, including accrued interest and long-term debt, was $1.6 million as of March 31, 2023 and December 31, 2022.

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Business Segment Data

3 Months Ended

Mar. 31, 2023

Business Segment Data [Line Items]

Segment Reporting Disclosure [Text Block]

Note 13 – Business Segment Data

Operating segments are based on the Company’s business components about which separate financial information is available and are evaluated regularly by the Company’s chief operating decision makers in deciding how to allocate resources and in assessing performance of the business.

The Company evaluates segment performance and allocates resources based upon operating income (loss). The Company’s operations are managed in two reportable business segments: Digital product sales and Digital product lease and maintenance.  Both design and produce large-scale, multi-color, real-time digital displays.  Both operating segments are conducted on a global basis, primarily through operations in the United States.  The Company also has operations in Canada.  The Digital product sales segment sells equipment and the Digital product lease and maintenance segment leases and maintains equipment.  Corporate general and administrative items relate to costs that are not directly identifiable with a segment.  There are no intersegment sales.

Foreign revenues represent less than 10% of the Company’s revenues in the three months ended March 31, 2023 and 2022.  The Company’s foreign operation does not manufacture its own equipment; the domestic operation provides the equipment that the foreign operation leases or sells.  The foreign operation operates similarly to the domestic operation and has similar profit margins.  Foreign assets are immaterial.

Information about the Company’s operations in its two business segments for the three months ended March 31, 2023 and 2022 is as follows:

	Three Months Ended March 31
In thousands	2023		2022
Revenues:
Digital product sales	$	4,121	$	3,237
Digital product lease and maintenance		228		428
Total revenues	$	4,349	$	3,665
Operating (loss) income:
Digital product sales	$	(301)	$	(71)
Digital product lease and maintenance		123		257
Corporate general and administrative expenses		(459)		(406)
Total operating loss		(637)		(220)
Interest expense, net		(144)		(142)
Loss on foreign currency remeasurement		(8)		(16)
Gain on forgiveness of PPP loan		-		824
Pension (expense) benefit		(63)		53
(Loss) income before income taxes		(852)		499
Income tax expense		(6)		(6)
Net (loss) income	$	(858)	$	493

	March 31 2023		December 31 2022
Assets
Digital product sales	$	7,784	$	8,221
Digital product lease and maintenance		1,005		1,143
Total identifiable assets		8,789		9,364
General corporate		50		48
Total assets	$	8,839	$	9,412

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Subsequent Events

3 Months Ended

Mar. 31, 2023

Subsequent Events [Line Items]

Subsequent Events [Text Block]

Note 14 – Subsequent Events

The Company has evaluated events and transactions subsequent to March 31, 2023 and through the date these Condensed Consolidated Financial Statements were included in this Form 10-Q and filed with the SEC.

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Revenue Recognition (Tables)

3 Months Ended

Mar. 31, 2023

Revenue Recognition (Tables) [Line Items]

Disaggregation of Revenue [Table Text Block]

	For the Three Months Ended
In thousands	March 31, 2023		March 31, 2022
Digital product sales:
Catalog and small customized products	$	4,121	$	3,237
Large customized products		-		-
Subtotal		4,121		3,237
Digital product lease and maintenance:
Operating leases		131		171
Maintenance agreements		97		257
Subtotal		228		428
Total	$	4,349	$	3,665

Contract with Customer, Contract Asset, Contract Liability, and Receivable [Table Text Block]

In thousands	March 31, 2023		December 31, 2022
Gross receivables	$	3,378	$	3,123
Allowance for credit losses		395		291
Net receivables		2,983		2,832
Contract liabilities		1,133		1,229

Schedule of Changes In Contract Asset and Contract Liability [Table Text Block]

	For the Three Months Ended
In thousands	March 31, 2023		March 31, 2022
Revenue recognized in the period from:
Amounts included in the contract liability at the beginning of the period	$	367	$	344
Performance obligations satisfied in previous periods (for example, due to changes in transaction price)	$	-	$	-

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Inventories (Tables)

3 Months Ended

Mar. 31, 2023

Inventories (Tables) [Line Items]

Schedule of Inventory, Current [Table Text Block]

	March 31 2023			December 31 2022
In thousands
Raw materials		$	1,827	$	2,535
Work-in-progress			-		-
Finished goods			387		187
		$	2,214	$	2,722

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Rental Equipment, net (Tables)

3 Months Ended

Mar. 31, 2023

Rental Equipment, net (Tables) [Line Items]

Rental Equipment [Table Text Block]

	March 31 2023			December 31 2022
In thousands
Rental equipment		$	2,077	$	2,077
Less accumulated depreciation			1,881		1,852
Net rental equipment		$	196	$	225

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Property, Plant and Equipment, net (Tables)

3 Months Ended

Mar. 31, 2023

Property, Plant and Equipment, net (Tables) [Line Items]

Property, Plant and Equipment [Table Text Block]

In thousands	March 31 2023		December 31 2022
Machinery, fixtures and equipment	$	2,856	$	2,856
Leaseholds and improvements		23		23
		2,879		2,879
Less accumulated depreciation		1,227		1,164
Net property, plant and equipment	$	1,652	$	1,715

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Long-Term Debt (Tables)

3 Months Ended

Mar. 31, 2023

Long-Term Debt (Tables) [Line Items]

Schedule of Long-Term Debt Instruments [Table Text Block]

	March 31		December 31
In thousands	2023		2022
8¼% Limited convertible senior subordinated notes due 2012	$	302	$	302
9½% Subordinated debentures due 2012		220		220
Revolving credit line – related party		2,246		2,246
Term loans – related party		1,000		1,000
Term loans		500		500
Total debt		4,268		4,268
Less deferred financing costs and debt discount		-		-
Net debt		4,268		4,268
Less portion due within one year		3,768		3,768
Net long-term debt	$	500	$	500

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Pension Plan (Tables)

3 Months Ended

Mar. 31, 2023

Pension Plan (Tables) [Line Items]

Schedule of Net Benefit Costs [Table Text Block]

	Three months ended March 31
In thousands	2023		2022
Interest cost	$	134	$	76
Expected return on plan assets		(145)		(200)
Amortization of net actuarial loss		74		71
Net periodic pension benefit	$	63	$	(53)

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Leases (Tables)

3 Months Ended

Mar. 31, 2023

Leases (Tables) [Line Items]

Schedule Of Future Minimum Rental Payment For Operating Leases [Table Text Block]

	March 31
In thousands, unless otherwise noted	2023
Balance Sheet:
ROU assets	$	660
Current lease liabilities – operating		313
Non-current lease liabilities - operating		383
Total lease liabilities		696
Weighted average remaining lease term (years)		1.5
Weighted average discount rate		7.5%
Future minimum lease payments:
Remainder of 2023	$	314
2024		146
2025		149
2026		152
2027		12
Thereafter		-
Total		773
Less: Imputed interest		77
Total lease liabilities		696
Less: Current lease liabilities		313
Long-term lease liabilities	$	383

Schedule of Cash Flow Supplemental Disclosures Leases [Table Text Block]

	For the three months ended
In thousands	March 31, 2023
Operating cash flow information:
Cash paid for amounts included in the measurement of lease liabilities	$	124
Non-cash activity:
ROU assets obtained in exchange for lease liabilities		-

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Stockholders' Deficit and Income (Loss) Per Share (Tables)

3 Months Ended

Mar. 31, 2023

Stockholders' Deficit and Income (Loss) Per Share (Tables) [Line Items]

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

Three months ended March 31
In thousands, except per share data	2023		2022
Numerator:
Net (loss) income, as reported	$	(858)	$	493
Denominator:
Weighted average shares outstanding – basic		13,446		13,446
Weighted average shares outstanding – diluted		13,470		13,531
Basic and diluted (loss) earnings per share – basic and diluted	$	(0.06)	$	0.04

Share-Based Payment Arrangement, Option, Activity [Table Text Block]

	Number of Options	Weighted Average  Exercise Price		Weighted average remaining contractual life (in years)	Average intrinsic  value
Outstanding at December 31, 2022	280,000	$	0.40	3.3	$	0.19
Granted	-		-
Expired	-		-
Outstanding at March 31, 2023	280,000	$	0.40	3.0	$	0.19
Exercisable at the end of the period	280,000	$	0.40	3.0	$	0.19

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Business Segment Data (Tables)

3 Months Ended

Mar. 31, 2023

Business Segment Data (Tables) [Line Items]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

	Three Months Ended March 31
In thousands	2023		2022
Revenues:
Digital product sales	$	4,121	$	3,237
Digital product lease and maintenance		228		428
Total revenues	$	4,349	$	3,665
Operating (loss) income:
Digital product sales	$	(301)	$	(71)
Digital product lease and maintenance		123		257
Corporate general and administrative expenses		(459)		(406)
Total operating loss		(637)		(220)
Interest expense, net		(144)		(142)
Loss on foreign currency remeasurement		(8)		(16)
Gain on forgiveness of PPP loan		-		824
Pension (expense) benefit		(63)		53
(Loss) income before income taxes		(852)		499
Income tax expense		(6)		(6)
Net (loss) income	$	(858)	$	493

	March 31 2023		December 31 2022
Assets
Digital product sales	$	7,784	$	8,221
Digital product lease and maintenance		1,005		1,143
Total identifiable assets		8,789		9,364
General corporate		50		48
Total assets	$	8,839	$	9,412

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Liquidity and Going Concern (Details) - Liquidity and Going Concern - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Liquidity and Going Concern (Details) - Liquidity and Going Concern [Line Items]
Net Income (Loss) Attributable to Parent	$ (858,000)	$ 493,000
Working Capita lDeficit	$ 9,900,000		$ 9,300,000

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Revenue Recognition (Details) - Performance Obligations	3 Months Ended
	Mar. 31, 2023 USD ($)
Revenue Recognition (Details) - Performance Obligations [Line Items]
Segment Reporting Information, Description of Products and Services	The Company has two primary revenue streams which are Digital product sales and Digital product lease and maintenance
Lessor, Operating Lease, Payment to be Received	$ 1,641,000
Lessor, Operating Lease, Payment to be Received, Remainder of Fiscal Year	466,000
Lessor, Operating Lease, Payment to be Received, Year One	391,000
Lessor, Operating Lease, Payment to be Received, Year Two	305,000
Lessor, Operating Lease, Payment to be Received, Year Three	235,000
Lessor, Operating Lease, Payment to be Received, Year Four	176,000
Lessor, Operating Lease, Payment to be Received, Year Five	$ 68,000
Minimum [Member]
Revenue Recognition (Details) - Performance Obligations [Line Items]
Lease and Maintenance Term of Contract	1 month
Maximum [Member]
Revenue Recognition (Details) - Performance Obligations [Line Items]
Lease and Maintenance Term of Contract	10 years

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Revenue Recognition (Details) - Remaining Performance Obligations $ in Millions	Mar. 31, 2023 USD ($)
Digital Product Sales [Member]
Revenue Recognition (Details) - Remaining Performance Obligations [Line Items]
Revenue, Remaining Performance Obligation, Amount	$ 1.7
Digital Product Lease And Maintenance [Member]
Revenue Recognition (Details) - Remaining Performance Obligations [Line Items]
Revenue, Remaining Performance Obligation, Amount	$ 1.6

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Revenue Recognition (Details) - Remaining Performance Obligations, Expected Timing of recognition	Mar. 31, 2023
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01
Revenue Recognition (Details) - Remaining Performance Obligations, Expected Timing of recognition [Line Items]
Revenue, Remaining Performance Obligation, Percentage	68.00%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	12 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01
Revenue Recognition (Details) - Remaining Performance Obligations, Expected Timing of recognition [Line Items]
Revenue, Remaining Performance Obligation, Percentage	20.00%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | Minimum [Member]
Revenue Recognition (Details) - Remaining Performance Obligations, Expected Timing of recognition [Line Items]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	13 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | Maximum [Member]
Revenue Recognition (Details) - Remaining Performance Obligations, Expected Timing of recognition [Line Items]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	36 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-04-01
Revenue Recognition (Details) - Remaining Performance Obligations, Expected Timing of recognition [Line Items]
Revenue, Remaining Performance Obligation, Percentage	12.00%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	37 years

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Revenue Recognition (Details) - Disaggregation of revenue from contracts with customers - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Disaggregation of Revenue [Line Items]
Disaggregation of revenue from contracts with customers	$ 4,349,000	$ 3,665,000
Digital Product Sales [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue from contracts with customers	4,121,000	3,237,000
Digital Product Lease And Maintenance [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue from contracts with customers	228,000	428,000
Catalog and Small Customized Products [Member] | Digital Product Sales [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue from contracts with customers	4,121,000	3,237,000
Large Customized Products [Member] | Digital Product Sales [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue from contracts with customers
Operating Leases [Member] | Digital Product Lease And Maintenance [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue from contracts with customers	131,000	171,000
Maintenance Agreements [Member] | Digital Product Lease And Maintenance [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue from contracts with customers	$ 97,000	$ 257,000

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Revenue Recognition (Details) - Company`s receivables and contract liabilities with customers - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Revenue Recognition (Details) - Company`s receivables and contract liabilities with customers [Line Items]
Gross receivables	$ 3,378,000	$ 3,123,000
Allowance for credit losses	395,000	291,000
Net receivables	2,983,000	2,832,000
Contract liabilities	$ 1,133,000	$ 1,229,000

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Revenue Recognition (Details) - Revenues as a result of changes in the contract asset and the contract liability - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Revenue Recognition (Details) - Revenues as a result of changes in the contract asset and the contract liability [Line Items]
Amounts included in the contract liability at the beginning of the period	$ 367,000	$ 344,000
Performance obligations satisfied in previous periods (for example, due to changes in transaction price)

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Inventories (Details) - Inventories - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Inventory [Line Items]
Raw materials	$ 1,827,000	$ 2,535,000
Finished goods	387,000	187,000
Total inventory	$ 2,214,000	$ 2,722,000

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Rental Equipment, net (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Rental Equipment [Member]
Rental Equipment, net (Details) [Line Items]
Depreciation	$ 29,000	$ 47,000

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Rental Equipment, net (Details) - Schedule Of Rental Equipment - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Rental Equipment, net (Details) - Schedule Of Rental Equipment [Line Items]
Rental equipment	$ 2,077,000	$ 2,077,000
Less accumulated depreciation	1,881,000	1,852,000
Net rental equipment	$ 196,000	$ 225,000

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Property, Plant and Equipment, net (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Property, Plant and Equipment, net (Details) [Line Items]
Property, Plant and Equipment, Net	$ 1,652,000		$ 1,715,000
Depreciation	63,000	$ 63,000
Machinery Fixtures and Equipment [Member] | Asset Pledged as Collateral [Member]
Property, Plant and Equipment, net (Details) [Line Items]
Property, Plant and Equipment, Net	$ 1,700,000

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Property, Plant and Equipment, net (Details) - Property, plant and equipment - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Property, plant and equipment, Gross	$ 2,879,000	$ 2,879,000
Less accumulated depreciation	1,227,000	1,164,000
Net property, plant and equipment	1,652,000	1,715,000
Machinery Fixtures and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, Gross	2,856,000	2,856,000
Leaseholds and Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, Gross	$ 23,000	$ 23,000

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Long-Term Debt (Details) - USD ($)						3 Months Ended
	Dec. 10, 2021	Apr. 23, 2020	Sep. 16, 2019	Apr. 27, 2019	Dec. 10, 2017	Mar. 31, 2022	Mar. 31, 2023	Dec. 31, 2022
Loan Agreement With MidCap [Member]
Long-Term Debt (Details) [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity			$ 2,200,000
Debt Instrument, Basis Spread on Variable Rate			4.75%
Debt Instrument, Interest Rate, Effective Percentage							12.75%
Long-Term Line of Credit							$ 2,200,000
First Carlisle Agreement [Member]
Long-Term Debt (Details) [Line Items]
Proceeds from Loans				$ 500,000
Debt Instrument, Maturity Date				Apr. 27, 2019
Debt Instrument, Interest Rate, Stated Percentage				12.00%
Interest Payable, Current							315,000	$ 300,000
Second Carlisle Agreement [Member]
Long-Term Debt (Details) [Line Items]
Proceeds from Loans					$ 500,000
Debt Instrument, Maturity Date					Dec. 10, 2017
Debt Instrument, Interest Rate, Stated Percentage					12.00%
Interest Payable, Current							315,000	300,000
8¼% Limited Convertible Senior Subordinated Notes Due 2012 [Member]
Long-Term Debt (Details) [Line Items]
Long-Term Debt							302,000	302,000
Interest Payable, Current							338,000	332,000
9½% Subordinated Debentures Due 2012 [Member]
Long-Term Debt (Details) [Line Items]
Long-Term Debt							220,000	220,000
Interest Payable, Current							279,000	273,000
EIDL Loan Note [Member] | Loan Note [Member]
Long-Term Debt (Details) [Line Items]
Proceeds from Loans	$ 500,000
Long-Term Debt							$ 500,000
Debt Instrument, Maturity Date	Dec. 10, 2051
Debt Instrument, Interest Rate, Stated Percentage							3.75%
Interest Payable, Current							$ 24,000	$ 20,000
Enterprise Bank and Trust [Member] | Loan Note [Member]
Long-Term Debt (Details) [Line Items]
Proceeds from Loans		$ 811,000
Proceeds From Loan Forgiveness						$ 453,000

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Long-Term Debt (Details) - Long-term debt - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Long-term debt, including current portion	$ 4,268,000	$ 4,268,000
Less portion due within one year	3,768,000	3,768,000
Net long-term debt	500,000	500,000
Total debt	4,268,000	4,268,000
Less deferred financing costs and debt discount
8¼% Limited Convertible Senior Subordinated Notes Due 2012 [Member]
Debt Instrument [Line Items]
Long-term debt, including current portion	302,000	302,000
9½% Subordinated Debentures Due 2012 [Member]
Debt Instrument [Line Items]
Long-term debt, including current portion	220,000	220,000
Revolving Credit Line - Related Party [Member]
Debt Instrument [Line Items]
Long-term debt, including current portion	2,246,000	2,246,000
Related Party Term Loan [Member]
Debt Instrument [Line Items]
Long-term debt, including current portion	1,000,000	1,000,000
Term Loan [Member]
Debt Instrument [Line Items]
Long-term debt, including current portion	$ 500,000	$ 500,000

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Pension Plan (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Pension Plan (Details) [Line Items]
Liability, Defined Benefit Pension Plan, Noncurrent	$ 2.9	$ 2.9

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Pension Plan (Details) - Components of net periodic pension cost - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Pension Plan (Details) - Components of net periodic pension cost [Line Items]
Interest cost	$ 134	$ 76
Expected return on plan assets	(145)	(200)
Amortization of net actuarial loss	74	71
Net periodic pension benefit	$ 63	$ (53)

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Leases (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Leases (Details) [Line Items]
Operating Lease, Expense	$ 119,000	$ 130,000
Minimum [Member]
Leases (Details) [Line Items]
Lessee, Operating Lease, Renewal Term	1 year
Maximum [Member]
Leases (Details) [Line Items]
Lessee, Operating Lease, Renewal Term	5 years

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Leases (Details) - Supplemental information regarding leases - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Balance Sheet:
ROU assets	$ 660,000	$ 765,000
Current lease liabilities – operating	313,000	393,000
Non-current lease liabilities - operating	383,000	412,000
Total lease liabilities	$ 696,000
Weighted average remaining lease term (years)	1 year 6 months
Weighted average discount rate	7.50%
Future minimum lease payments:
Remainder of 2023	$ 314,000
2024	146,000
2025	149,000
2026	152,000
2027	12,000
Thereafter
Total	773,000
Less: Imputed interest	77,000
Total lease liabilities	696,000
Less: Current lease liabilities	313,000	393,000
Long-term lease liabilities	$ 383,000	$ 412,000

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Leases (Details) - Supplemental cash flow information regarding leases	12 Months Ended
	Mar. 31, 2023 USD ($)
Operating cash flow information:
Cash paid for amounts included in the measurement of lease liabilities	$ 124,000
Non-cash activity:
ROU assets obtained in exchange for lease liabilities

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Stockholders' Deficit and Income (Loss) Per Share (Details) - USD ($)		3 Months Ended
	Mar. 22, 2022	Mar. 31, 2023	Mar. 31, 2023	Mar. 31, 2022
Stockholders' Deficit and Income (Loss) Per Share (Details) [Line Items]
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross	280,000
Share-Based Compensation Arrangements by Share-Based Payment Award, Options, Grants in Period, Weighted Average Exercise Price	$ 0.4
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Risk Free Interest Rate	2.55%
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Volatility Rate	108.00%
Share-Based Payment Arrangement, Expense		$ 38,000
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount
Share-Based Payment Arrangement, Option [Member]
Stockholders' Deficit and Income (Loss) Per Share (Details) [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount		280,000
Warrant [Member]
Stockholders' Deficit and Income (Loss) Per Share (Details) [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount		1,600,000

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Stockholders' Deficit and Income (Loss) Per Share (Details) - Calculation of income (loss) per share - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Numerator:
Net (loss) income, as reported (in Dollars)	$ (858,000)	$ 493,000
Denominator:
Weighted average shares outstanding – basic	13,446,000	13,446,000
Weighted average shares outstanding – diluted	13,470,000	13,531,000
Basic and diluted (loss) earnings per share – basic and diluted (in Dollars per share)	$ (60.00)	$ 40.00

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Stockholders' Deficit and Income (Loss) Per Share (Details) - Company`s stock options - USD ($)		3 Months Ended
	Mar. 22, 2022	Mar. 31, 2023	Mar. 31, 2023
Stockholders' Deficit and Income (Loss) Per Share (Details) - Company`s stock options [Line Items]
Outstanding, Number of Options		280,000
Outstanding, Weighted Average Exercise Price		$ 0.4
Outstanding, Weighted average remaining contractual life		3 years 3 months 18 days	3 years
Outstanding, Average intrinsic value		$ 0.19
Granted, Number of Options	280,000
Granted, Weighted Average Exercise Price	$ 0.4
Expired, Number of Options
Expired, Weighted Average Exercise Price
Outstanding, Number of Options		280,000	280,000
Outstanding, Weighted Average Exercise Price		$ 0.4	$ 0.4
Outstanding, Weighted average remaining contractual life		3 years 3 months 18 days	3 years
Outstanding, Average intrinsic value		$ 0.19	$ 0.19
Exercisable, Number of Options		280,000	280,000
Exercisable, Weighted Average Exercise Price		$ 0.4	$ 0.4
Exercisable, Weighted average remaining contractual life			3 years
Exercisable, Average intrinsic value		$ 0.19	$ 0.19

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Related Party Transactions (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Related Party Transactions (Details) [Line Items]
Related Party Transaction, Purchases from Related Party	$ 472,000	$ 1,100,000
Unilumin [Member]
Related Party Transactions (Details) [Line Items]
Equity Method Investment, Ownership Percentage	52.00%
Benificial Owner [Member]
Related Party Transactions (Details) [Line Items]
Equity Method Investment, Ownership Percentage	53.70%
Mr Fazio[Member]
Related Party Transactions (Details) [Line Items]
Salary and Wage, Officer, Excluding Cost of Good and Service Sold	$ 125,000
Mr. Yu [Member]
Related Party Transactions (Details) [Line Items]
Salary and Wage, Officer, Excluding Cost of Good and Service Sold	26,000
Unilumin [Member] | Related Party [Member]
Related Party Transactions (Details) [Line Items]
Accounts Payable	7,600,000		$ 7,300,000
Carlisle [Member] | Related Party [Member]
Related Party Transactions (Details) [Line Items]
Accounts Payable	$ 1,600,000		$ 1,600,000

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Business Segment Data (Details)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Business Segment Data (Details) [Line Items]
Number of Reportable Segments	2
Foreign [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member]
Business Segment Data (Details) [Line Items]
Concentration Risk, Percentage	10.00%	10.00%

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Business Segment Data (Details) - Business Segment Data - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Revenues:
Revenues	$ 4,349,000	$ 3,665,000
Operating (loss) income:
Operating income (loss)	(637,000)	(220,000)
Interest expense, net	(144,000)	(142,000)
Loss on foreign currency remeasurement	(8,000)	(16,000)
Gain on forgiveness of PPP loan		824,000
Pension (expense) benefit	(63,000)	53,000
(Loss) income before income taxes	(852,000)	499,000
Income tax expense	(6,000)	(6,000)
Net (loss) income	(858,000)	493,000
Assets
Assets	8,839,000		$ 9,412,000
Operating Segments [Member]
Assets
Assets	8,789,000		9,364,000
Corporate, Non-Segment [Member]
Operating (loss) income:
Operating income (loss)	(459,000)	(406,000)
Assets
Assets	50,000		48,000
Digital Product Sales [Member]
Revenues:
Revenues	4,121,000	3,237,000
Digital Product Sales [Member] | Operating Segments [Member]
Revenues:
Revenues	4,121,000	3,237,000
Operating (loss) income:
Operating income (loss)	(301,000)	(71,000)
Assets
Assets	7,784,000		8,221,000
Digital Product Lease And Maintenance [Member]
Revenues:
Revenues	228,000	428,000
Digital Product Lease And Maintenance [Member] | Operating Segments [Member]
Revenues:
Revenues	228,000	428,000
Operating (loss) income:
Operating income (loss)	123,000	$ 257,000
Assets
Assets	$ 1,005,000		$ 1,143,000