0001437749-23-014573 | 10-Q | XBRL Viewer

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Note 1 - Nature of Organization and Operations (Details Textual) $ / shares in Units, $ in Thousands			1 Months Ended		3 Months Ended
	Mar. 27, 2023 $ / shares shares	Jul. 10, 2020	Mar. 31, 2023 USD ($) $ / shares shares	Sep. 30, 2018	Mar. 31, 2023 USD ($) $ / shares shares	Mar. 31, 2022 USD ($)	Mar. 26, 2023 shares	Dec. 31, 2022 USD ($) $ / shares shares
Common Stock, Par or Stated Value Per Share (in dollars per share) \| $ / shares	$ 0.01		$ 0.01		$ 0.01			$ 0.01
Common Stock, Shares Authorized (in shares) \| shares	66,666,666		66,666,000		66,666,000		200,000,000	66,666,000
Retained Earnings (Accumulated Deficit)			$ (51,409)		$ (51,409)			$ (50,409)
Working Capital			(3,822)		(3,822)
Cash and Cash Equivalents, at Carrying Value			$ 3,905		3,905			$ 1,633
Operating Income (Loss)					(90)	$ (1,014)
Net Cash Provided by (Used in) Operating Activities					$ 3,868	$ 1,201
Reverse Stock Split [Member]
Stockholders' Equity Note, Stock Split, Conversion Ratio	3	3	3	30	3

- Definition

Amount of accumulated undistributed earnings (deficit).

+ References + Details

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Operating Activities:
Net (loss) income	$ (1,000)	$ 2,502
Adjustments to reconcile net (loss) income to net cash provided by operating activities
Depreciation and amortization	779	707
Amortization of debt discount	356	181
Amortization of stock-based compensation	298	551
Employee Retention and other Government Credits	0	16
Loss on extinguishment of debt	0	295
Amounts accrued	237	116
Loss on change in fair value of contingent consideration	76	(0)
Deferred income taxes	24	0
Changes to operating assets and liabilities:
Accounts receivable	1,177	(3,724)
Work-in-process and inventories	788	52
Prepaid expenses and other current assets	1,015	777
Accounts payable	(486)	2,292
Accrued expenses	(45)	35
Deferred revenues	2,382	1,901
Customer deposits	(1,693)	(213)
Other	(40)	(30)
Net cash provided by operating activities	3,868	1,201
Investing activities
Acquisition of business, net of cash acquired	0	(17,184)
Purchases of property and equipment	(31)	(10)
Capitalization of labor for software development	(1,003)	(775)
Net cash used in investing activities	(1,034)	(17,969)
Financing activities
Principal payments on finance leases	(2)	0
Proceeds from sale of common stock in PIPE, net of offering expenses	0	1,814
Proceeds from sale & exercise of pre-funded warrants in PIPE, net of offering expenses	0	8,295
Proceeds from Acquisition Loan, net of offering expenses	0	9,868
Net cash (used in) provided by financing activities	(562)	19,873
Increase in Cash and Cash Equivalents	2,272	3,105
Cash and Cash Equivalents, beginning of period	1,633	2,883
Cash and Cash Equivalents, end of period	3,905	5,988
Term Loan 2022 [Member]
Financing activities
Repayment of notes payable	(250)	0
Secured Promissory Note [Member]
Financing activities
Repayment of notes payable	(310)	(104)
Purchaser Warrant [Member]
Adjustments to reconcile net (loss) income to net cash provided by operating activities
Loss on debt waiver consent	(0)	1,212
Change in fair value of warrant		397
Warrants in Debt and Equity Offerings to Finance Merger [Member]
Adjustments to reconcile net (loss) income to net cash provided by operating activities
Change in fair value of warrant	$ (0)	$ (5,469)

Note 9 - Commitments and Contingencies (Details Textual) - Alleged Breach of Contract Related to Hardware Failures of Equipment Installations Performed by Allure [Member] - USD ($) $ in Thousands	Mar. 10, 2023	Oct. 10, 2019
Loss Contingency, Damages Sought, Value		$ 3,200
Litigation Settlement, Amount Awarded to Other Party	$ 733
Litigation Settlement, Amount Awarded to Other Party, Covered by Insurance	700
Litigation Settlement, Amount Awarded to Other Party, Not Covered by Insurance	$ 33

Note 4 - Revenue Recognition (Tables)

3 Months Ended

Mar. 31, 2023

Notes Tables

Disaggregation of Revenue [Table Text Block]

	*Three Months*		*Three Months*
	*Ended*		*Ended*
	*March 31,*		*March 31,*
*(in thousands)*	*2023*		*2022*
Hardware	$	4,322	$	6,459

Services:
Installation Services		947		1,339
Software Development Services		531		191
Managed Services		4,072		2,703
Media Sales		72		65
Total Services		5,622		4,298

Total Hardware and Services	$	9,944	$	10,757

Note 5 - Business Combination (Tables)

3 Months Ended

Mar. 31, 2023

Notes Tables

Schedule of Business Acquisitions, by Acquisition [Table Text Block]

*(in thousands)*	*Consideration*
Cash consideration for Reflect stock	$	16,664	⁽¹⁾
Cash consideration for Retention Bonus Plan		1,334	⁽²⁾
Common stock issued to Reflect stockholders		4,667	⁽³⁾
Common stock issued to Retention Bonus Plan		333	⁽⁴⁾
Secured Promissory Note		2,500	⁽⁵⁾
Earnout liability		10,862	⁽⁶⁾
Total consideration		36,360
Vendor deposit with the Company		(818)	⁽⁷⁾
Cash acquired		(812)	⁽⁸⁾
Net consideration transferred	$	34,730

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]

*(in thousands)*	*Total*
Accounts receivable	$	1,359
Inventory		190
Prepaid expenses & other current assets		666
Property and equipment		96
Operating right of use assets		555
Other assets		36
Identified intangible assets:
Definite-lived trade names		960
Definite-lived Developed technology		5,130
Definite-lived Customer relationships		11,040
Definite-lived Noncompete agreements		30
Goodwill		18,935
Accounts payable		(104	)
Accrued expenses		(483	)
Customer deposits		(1,661	)
Deferred revenues		(1,259	)
Current maturities of operating leases		(277	)
Long-term obligations under operating leases		(278	)
Other liabilities		(205	)
Net consideration transferred	$	34,730

Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block]

*(in thousands)*	*Valuation*		*Amortization Period (in years)*
Identifiable definite-lived intangible assets:
Trade names	$	960		5
Developed technology		5,130		10
Noncompete		30		2
Customer relationships		11,040		10
Total	$	17,160

Note 2 - Summary of Significant Accounting Policies - Allowance for Credit Loss (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Balance as of December 31, 2022	$ 984
Amounts accrued	237	$ 116
Write-offs charged against the allowance	(4)
Balance as of March 31, 2023	$ 1,217

Note 5 - Business Combination (Details Textual)
$ / shares in Units, $ in Thousands

3 Months Ended

Feb. 11, 2023

USD ($)

Dec. 31, 2022

$ / shares

Feb. 17, 2022

USD ($)

$ / shares

Nov. 12, 2021

USD ($)

$ / shares

Mar. 31, 2022

USD ($)

Feb. 17, 2022

USD ($)

$ / shares

Feb. 17, 2023

$ / shares

Business Combination, Contingent Consideration, Billable Devices Online, Maximum Share Price (in dollars per share) | $ / shares

$ 19.20

$ 21.60

Business Combination, Contingent Consideration, Billable Devices Online, Reduction in Share Price (in dollars per share) | $ / shares

$ 2.40

Secured Promissory Note [Member]

Debt Instrument, Interest Rate, Stated Percentage

4.60%

0.59%

Debt Instrument, Periodic Payment, Principal | $

$ 104

Reflect Systems, Inc. [Member]

Payments to Acquire Businesses, Gross | $

$ 16,166

$ 16,664

^[1]

Business Acquisition, Equity Interest Issued or Issuable, Number of Shares (in shares) | shares

777,778

Business Acquisition, Share Price (in dollars per share) | $ / shares

$ 6

Business Acquisition, Contingent Consideration, Maximum Share Price (in dollars per share) | $ / shares

$ 19.20

Business Acquisition, Contingent Consideration, Threshold Number of Billable Devices Online

85,000

Business Combination, Contingent Consideration, Billable Devices Online, Maximum Share Price (in dollars per share) | $ / shares

$ 21.60

Business Acquisition, Extension Option, Minimum Extension Threshold Price Percentage

70.00%

Business Acquisition, Extension Option, Minimum Extension Threshold Price Percentage, Increase in Price

80.00%

Business Acquisition, Extension Option, Minimum Extension Threshold Price, Increase in Price (in dollars per share) | $ / shares

$ 3.00

Business Combination, Consideration Transferred, Deposit Previously Paid | $

$ 818

818

^[2]

Business Combination, Acquisition Related Costs | $

$ 391

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment, Total | $

$ 96

Reflect Systems, Inc. [Member] | Minimum [Member]

Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life (Year)

2 years

Reflect Systems, Inc. [Member] | Maximum [Member]

Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life (Year)

10 years

Reflect Systems, Inc. [Member] | Retention Bonus Plan [Member]

Deferred Compensation Arrangement with Individual, Cash Award Granted, Amount | $

$ 1,334

Deferred Compensation Arrangement with Individual, Cash Awards Granted, Percentage Paid

50.00%

Deferred Compensation Arrangement with Individual, Cash Awards Granted, Percentage to be Paid, Year One

25.00%

Deferred Compensation Arrangement with Individual, Cash Awards Granted, Percentage to be Paid, Year Two

25.00%

Deferred Compensation Arrangement with Individual, Fair Value of Shares Issued and Issuable | $

$ 667

Deferred Compensation Arrangement with Individual, Percentage of Shares Issued

50.00%

Deferred Compensation Arrangement with Individual, Percentage of Shares to be Issued, Year One

25.00%

Deferred Compensation Arrangement with Individual, Percentage of Shares to be Issued, Year Two

25.00%

Shares Issued, Price Per Share (in dollars per share) | $ / shares

$ 6.00

$ 2.22

Stock Issued During Period, Shares, Acquisitions (in shares) | shares

62,475

[1]	Cash consideration for outstanding shares of Reflect capital stock per Merger Agreement.
[2]	Prior to the Merger, Reflect had engaged the Company on a project and paid the Company a deposit of $818. These amounts reduced consideration paid by the Company in accordance with ASC 805.

Note 4 - Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Total sales	$ 9,944	$ 10,757
Hardware [Member]
Total sales	4,322	6,459
Installation Services [Member]
Total sales	947	1,339
Software Development Services [Member]
Total sales	531	191
Managed Services [Member]
Total sales	4,072	2,703
Media [Member]
Total sales	72	65
Service [Member]
Total sales	$ 5,622	$ 4,298

- Definition

Amount, including tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value-added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 924
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479941/924-10-S99-1

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-5

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 30
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-30

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 42
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-42

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 40
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-40

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 41
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-41

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-4

+ Details

Note 8 - Loans Payable (Tables)

3 Months Ended

Mar. 31, 2023

Notes Tables

Schedule of Debt [Table Text Block]

As of March 31, 2023

Issuance

Maturity

Debt Type

Date

Principal

Date

Warrants

Interest Rate Information

2/17/2022

10,000

2/15/2025

833,334

8.0% interest⁽¹⁾

2/17/2022

1,146

2/17/2024

4.60% interest⁽²⁾

2/17/2022

7,185

2/15/2025

898,165

10.0% interest⁽³⁾

10/31/2022

1,750

9/1/2023

12.5% interest⁽⁴⁾

Total debt, gross

20,081

1,731,499

Debt discount

(2,713

)

Total debt, net

17,368

Less current maturities

(4,944

)

Long term debt

12,424

As of December 31, 2022

Issuance

Maturity

Debt Type

Date

Principal

Date

Warrants

Interest Rate Information

2/17/2022

10,000

2/15/2025

833,334

8.0% interest⁽¹⁾

2/17/2022

1,456

2/17/2024

0.59% interest⁽²⁾

2/17/2022

7,185

2/15/2025

898,165

10.0% interest⁽³⁾

10/31/2022

2,000

9/1/2023

12.5% interest⁽⁴⁾

Total debt, gross

20,641

1,731,499

Debt discount

(3,069

)

Total debt, net

17,572

Less current maturities

(4,499

)

Long term debt

13,073

Note 11 - Warrants (Details Textual) - USD ($) $ / shares in Units, $ in Thousands				3 Months Ended
	Jun. 30, 2022	Feb. 17, 2022	Feb. 03, 2022	Mar. 31, 2023	Mar. 31, 2022	Mar. 27, 2023	Dec. 31, 2022
Common Stock, Par or Stated Value Per Share (in dollars per share)				$ 0.01		$ 0.01	$ 0.01
Warrants With Securities Purchase Agreement [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares)			438,334
Class of Warrant or Right, Fair Value Per Warrant (in dollars per share)					$ 1.7445		$ 3.2781
Fair Value Adjustment of Warrants					$ 3,664
Pre-funded Warrants [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares)			1,950,502
Common Stock Warrants [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares)			1,950,502
Warrants and Rights Outstanding, Term (Year)			5 years
Class of Warrant or Right, Outstanding (in shares)	2,388,836
Class of Warrant or Right, Extension Term (Year)	1 year
Lender Warrant [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares)		1,731,499		1,731,499
Warrants and Rights Outstanding, Term (Year)		5 years					5 years
Class of Warrant or Right, Fair Value Per Warrant (in dollars per share)					$ 1.626		$ 2.4387
Fair Value Adjustment of Warrants					$ (1,408)
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)		$ 6.00		$ 6.00
Debt Instrument, Unamortized Discount, Increase							$ 4,223
Class of Warrant or Right, Outstanding (in shares)	1,731,499
Purchaser Warrant [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares)		466,667
Warrants and Rights Outstanding, Term (Year)		5 years
Class of Warrant or Right, Fair Value Per Warrant (in dollars per share)					$ 1.7445		$ 2.5968
Fair Value Adjustment of Warrants					$ 397
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)		$ 4.23
Class of Warrant or Right, Waiver Fee		$ 175
Class of Warrant or Right, Stated Price Per Share (in dollars per share)		$ 0.375
Warrant Issuance Expense		$ 1,211		$ (0)	$ 1,212
Class of Warrant or Right, Outstanding (in shares)	466,667
Securities Purchase Agreement [Member]
Stock Issued During Period, Shares, New Issues (in shares)			438,334
Common Stock, Par or Stated Value Per Share (in dollars per share)			$ 0.01
Sale of Common Stock and Warrants, Price Per Share (in dollars per share)			4.605
Common Stock and Pre-funded Warrants [Member]
Sale of Common Stock and Warrants, Price Per Share (in dollars per share)			$ 4.6047
Common Stock and Warrants [Member]
Proceeds from Issuance or Sale of Equity, Total			$ 11,000

Note 2 - Summary of Significant Accounting Policies (Details Textual) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Inventory Write-down	$ 1,777		$ 1,777
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares)	7,339,582	6,910,962
Unrecognized Tax Benefits, Ending Balance	$ 0		0
Safe Space Solutions [Member]
Inventory Write-down	$ 1,707		$ 1,707

Note 8 - Loans Payable (Details Textual) - USD ($) $ / shares in Units, $ in Thousands				3 Months Ended
	Feb. 11, 2023	Oct. 31, 2022	Feb. 17, 2022	Mar. 31, 2023	Mar. 31, 2022	Feb. 17, 2023	Dec. 31, 2022	Dec. 31, 2021
Gain (Loss) on Extinguishment of Debt, Total				$ (0)	$ (295)
Interest Expense, Debt				$ 356	$ 162
Lender Warrant [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares)			1,731,499	1,731,499
Warrants and Rights Outstanding, Term (Year)			5 years				5 years
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)			$ 6.00	$ 6.00
Warrant or Right Outstanding, Fair Value Per Warrant (in dollars per share)				$ 2.4387
Acquisition Term Loan [Member]
Debt Instrument, Interest Rate, Cash Interest			8.00%
Debt Instrument, Unamortized Discount, Total				$ 2,032
Seller Note [Member]
Debt Instrument, Interest Rate, Cash Interest			0.59%			4.60%
Consolidation Term Loan [Member]
Debt Instrument, Interest Rate, Cash Interest			10.00%
Debt Instrument, Face Amount								$ 7,185
Debt Instrument, Interest Rate, Stated Percentage								10.00%
Percentage of Warrant Covered by Debt								75.00%
Number of Warrants Covered by Debt (in shares)								898,165
Gain (Loss) on Extinguishment of Debt, Total				(295)
Debt Instrument, Unamortized Discount, Total				$ 2,190
Secured Promissory Note [Member]
Debt Instrument, Face Amount			$ 2,500
Debt Instrument, Interest Rate, Stated Percentage	4.60%		0.59%
Debt Instrument, Periodic Payment	$ 104		$ 104
Senior Secured Term Loan [Member]
Debt Instrument, Face Amount								$ 4,767
Secured Convertible Loan [Member]
Debt Instrument, Face Amount								$ 2,418
Acquisition Loan With Slipstream [Member]
Debt Instrument, Interest Rate, Stated Percentage				8.00%
Percentage of Warrant Covered by Debt				50.00%
Number of Warrants Covered by Debt (in shares)				833,334
Proceeds from Loans				$ 10,000
Proceeds from Loans, Net				$ 9,950
Term Loan 2022 [Member]
Debt Instrument, Face Amount		$ 2,000
Debt Instrument, Interest Rate, Stated Percentage		12.50%
Debt Instrument, Periodic Payment		$ 270

Note 5 - Business Combination - Identifiable Intangible Assets (Details) - Reflect Systems, Inc. [Member] $ in Thousands	3 Months Ended
	Feb. 17, 2022 USD ($)
Valuation	$ 17,160
Trade Names [Member]
Valuation	$ 960
Amortization period (Year)	5 years
Developed Technology Rights [Member]
Valuation	$ 5,130
Amortization period (Year)	10 years
Noncompete Agreements [Member]
Valuation	$ 30
Amortization period (Year)	2 years
Customer Relationships [Member]
Valuation	$ 11,040
Amortization period (Year)	10 years

Note 13 - Significant Customers/Vendors

3 Months Ended

Mar. 31, 2023

Notes to Financial Statements

Concentration Risk Disclosure [Text Block]

NOTE 13: SIGNIFICANT CUSTOMERS/VENDORS

Significant Customers

We had two customers that in the aggregate accounted for 39.7% of accounts receivable at March 31, 2023 and three customers that in the aggregate accounted for 49.2% of accounts receivable at December 31, 2022.

We had two customers that in the aggregate accounted for 44.5% of revenue for the three months ended March 31, 2023, compared to three customers that in the aggregate accounted for 70.0% of revenue for the three months ended March 31, 2022.

Significant Vendors

We had two vendors that in the aggregate accounted for 45.6% of outstanding accounts payable at March 31, 2023, and one vendor that accounted for 30.1% of outstanding accounts payable at December 31, 2022.

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
CURRENT ASSETS
Cash and cash equivalents	$ 3,905	$ 1,633
Accounts receivable, net	6,849	8,263
Work-in-process and inventories, net	1,479	2,267
Prepaid expenses and other current assets	804	1,819
Total current assets	13,037	13,982
Property and equipment, net	245	201
Operating lease right-of-use assets	1,504	1,584
Intangibles, net	23,819	23,752
Goodwill	26,453	26,453
Other assets	44	43
TOTAL ASSETS	65,102	66,015
CURRENT LIABILITIES
Accounts payable	3,087	3,757
Accrued expenses	3,726	3,828
Deferred revenues	3,605	1,223
Customer deposits	785	2,478
Current maturities of operating leases	712	711
Total current liabilities	16,859	16,496
Long-term Secured Promissory Note	0	208
Long-term obligations under operating leases	792	873
Contingent acquisition consideration, at fair value	9,865	9,789
Other liabilities	80	205
TOTAL LIABILITIES	40,020	40,436
SHAREHOLDERS’ EQUITY
Common stock, $0.01 par value, 66,666 shares authorized; 7,394 and 7,266 shares issued and outstanding, respectively	74	72
Additional paid-in capital	76,417	75,916
Accumulated deficit	(51,409)	(50,409)
Total shareholders’ equity	25,082	25,579
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	65,102	66,015
Seller Note [Member]
CURRENT LIABILITIES
Short-term portion of Secured Promissory Note	1,146	1,248
Consolidated Term Loan [Member] \| Related Party [Member]
CURRENT LIABILITIES
Short-term related party Loan	2,048	1,251
Long-term debt	3,736	4,349
Term Loan 2022 [Member] \| Related Party [Member]
CURRENT LIABILITIES
Short-term related party Loan	1,750	2,000
Acquisition Term Loan [Member] \| Related Party [Member]
CURRENT LIABILITIES
Long-term debt	$ 8,688	$ 8,516

Note 12 - Stock-based Compensation (Tables)

3 Months Ended

Mar. 31, 2023

Notes Tables

Share-Based Payment Arrangement, Option, Exercise Price Range [Table Text Block]

Time Vesting Options			Weighted
			Average		Weighted				Weighted
			Remaining		Average				Average
Range of Exercise	Number		Contractual		Exercise		Options		Exercise
Prices between	Outstanding		Life		Price		Exercisable		Price
$4.01 - $8.00		566,673		7.39	$	7.42		380,560	$	7.40
$8.01+		96,125		2.78		25.22		96,125	$	25.22
		662,798		6.72	$	10.00		476,685

Performance Vesting Options

Weighted

Average

Weighted

Remaining

Average

Range of Exercise

Number

Contractual

Exercise

Options

Exercise

Prices between

Outstanding

Life

Price

Exercisable

Price

$4.01 - $8.00

240,000

7.18

7.59

240,000

7.59

240,000

7.18

7.59

240,000

Market Vesting Options

Weighted

Average

Weighted

Remaining

Average

Range of Exercise

Number

Contractual

Exercise

Options

Exercise

Prices between

Outstanding

Life

Price

Exercisable

Price

$0.01 - $4.00

633,334

1.89

3.00

633,334

1.89

3.00

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

										*Performance Vesting*
	*Market Vesting Options*				*Time Vesting Options*					*Options*
			*Weighted*					*Weighted*				*Weighted*
			*Average*					*Average*				*Average*
	*Options*		*Exercise*		*Options*			*Exercise*		*Options*		*Exercise*
Date/Activity	*Outstanding*		*Price*		*Outstanding*			*Price*		*Outstanding*		*Price*
Balance, December 31, 2022		633,334		3.00		662,910		$	10.02		240,000	$	7.59
Forfeited or expired		-		-		(112	)		162.00		-		-
Balance, March 31, 2023		633,334		3.00		662,798			10.00		240,000	$	7.59

Share-Based Compensation Arrangements by Share-Based Payment Award, Options, Vested and Expected to Vest, Outstanding [Table Text Block]

	*Share Price Target*
												*Guaranteed*			*Total*
Executive		*$6.00*		*$9.00*		*$12.00*		*$15.00*		*$18.00*		*Price*			*Shares*
Mills Shares Vested		16,667		33,334		50,000		66,667		83,333			83,333			333,334
Logan Shares Vested		10,000		20,000		30,000		40,000		50,000			50,000			200,000

Percentage of Shares Vested		5	%	10	%	15	%	20	%	25	%		25	%

Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]

Risk-free interest rate	3.30	%
Expected term (in years)	2.68
Expected price volatility	123.53	%
Dividend yield	0	%

Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Share-Based Payment Arrangement, Employee [Member] Common Stock [Member]	Share-Based Payment Arrangement, Employee [Member] Additional Paid-in Capital [Member]	Share-Based Payment Arrangement, Employee [Member] Retained Earnings [Member]	Share-Based Payment Arrangement, Employee [Member]	Director [Member] Common Stock [Member]	Director [Member] Additional Paid-in Capital [Member]	Director [Member] Retained Earnings [Member]	Director [Member]	Vendor [Member] Common Stock [Member]	Vendor [Member] Additional Paid-in Capital [Member]	Vendor [Member] Retained Earnings [Member]	Vendor [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Balance (in shares) at Dec. 31, 2021													4,002,843
Balance at Dec. 31, 2021													$ 40	$ 60,943	$ (52,254)	$ 8,729
Stock-based compensation (in shares)	0
Stock-based compensation	$ 0	$ 551	$ 0	$ 551
Stock-based compensation	$ 0	551	0	551
Shares issued to employees pursuant to the Retention Bonus Plan (in shares)													833,334
Shares issued to employees pursuant to the Retention Bonus Plan													$ 8	4,992	0	5,000
Net (loss) income													$ 0	0	2,502	2,502
Shares issued and warrants exercised in private investment in public entity ("PIPE") (in shares)													2,388,835
Shares issued and warrants exercised in private investment in public entity ("PIPE")													$ 24	2,254	0	2,278
Warrant repricing events													$ 0	31	(31)	0
Balance (in shares) at Mar. 31, 2022													7,225,012
Balance at Mar. 31, 2022													$ 72	68,771	(49,783)	19,060
Balance (in shares) at Dec. 31, 2022													7,266,382
Balance at Dec. 31, 2022													$ 72	75,916	(50,409)	25,579
Stock-based compensation (in shares)	0				51,616				13,934
Stock-based compensation	$ 0	243	0	243	$ 1	$ 95	$ 0	$ 96	$ 0	$ 25	$ 0	$ 25
Stock-based compensation	$ 0	$ 243	$ 0	$ 243	$ 1	$ 95	$ 0	$ 96	$ 0	$ 25	$ 0	$ 25
Shares issued to employees pursuant to the Retention Bonus Plan (in shares)													62,475
Shares issued to employees pursuant to the Retention Bonus Plan													$ 1	138	0	139
Net (loss) income													$ 0	0	(1,000)	(1,000)
Balance (in shares) at Mar. 31, 2023													7,394,407
Balance at Mar. 31, 2023													$ 74	$ 76,417	$ (51,409)	$ 25,082

Note 4 - Revenue Recognition

3 Months Ended

Mar. 31, 2023

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

NOTE 4: REVENUE RECOGNITION

The Company applies ASC 606 for revenue recognition. The following table disaggregates the Company’s revenue by major source for the three months ended March 31, 2023 and 2022:

	*Three Months*		*Three Months*
	*Ended*		*Ended*
	*March 31,*		*March 31,*
*(in thousands)*	*2023*		*2022*
Hardware	$	4,322	$	6,459

Services:
Installation Services		947		1,339
Software Development Services		531		191
Managed Services		4,072		2,703
Media Sales		72		65
Total Services		5,622		4,298

Total Hardware and Services	$	9,944	$	10,757

System hardware sales

System hardware revenue is recognized generally upon shipment of the product or customer acceptance depending upon contractual arrangements with the customer in instances in which the sale of hardware is the sole performance obligation. Shipping charges billed to customers are included in hardware sales and the related shipping costs are included in hardware cost of sales. The cost of freight and shipping to the customer is recognized in cost of sales at the time of transfer of control to the customer. System hardware revenues are classified as “Hardware” within our disaggregated revenue.

Installation services

The Company performs outsourced installation services for customers and recognizes revenue upon completion of the installations. Installation services also includes engineering services performed as part of an installation project.

When system hardware sales include installation services to be performed by the Company, the goods and services in the contract are not distinct, so the arrangement is accounted for as a single performance obligation. Our customers control the work-in-process and can make changes to the design specifications over the contract term. Revenues are recognized over time as the installation services are completed based on the relative portion of labor hours completed as a percentage of the budgeted hours for the installation. Installation services revenues are classified as “Installation Services” within our disaggregated revenue.

Software design and development services

Software and software license sales are revenue when a fixed fee order has been received and delivery has occurred to the customer. Revenue is recognized generally upon customer acceptance (point-in-time) of the software product and verification that it meets the required specifications. Software is delivered to customers electronically. Software design and development revenues are classified as “Software Development Services” within our disaggregated revenue.

Software as a service

Software as a service includes revenue from software licensing and delivery in which software is licensed on a subscription basis and is centrally hosted by the Company. These services often include software updates which provide customers with rights to unspecified software product upgrades and maintenance releases and patches released during the term of the support period. Contracts for these services are generally 12-36 months in length. We account for revenue from these services in accordance with ASC 985-20-15-5 and recognize revenue ratably over the performance period. Software as a service revenue are classified as “Managed Services” within our disaggregated revenue.

Maintenance and support services

The Company sells support services which include access to technical support personnel for software and hardware troubleshooting. The Company offers a hosting service through our network operations center, or NOC, allowing the ability to monitor and support its customers’ networks 7 days a week, 24 hours a day. These contracts are generally 12-36 months in length. Revenue is recognized over the term of the agreement in proportion to the costs incurred in fulfilling performance obligations under the contract. Maintenance and Support revenues are classified as “Managed Services” within our disaggregated revenue.

Maintenance and support fees are based on the level of service provided to end customers, which can range from monitoring the health of a customer’s network to supporting a sophisticated web-portal to managing the end-to-end hardware and software of a digital marketing system. These agreements are renewable by the customer. Rates for maintenance and support, including subsequent renewal rates, are typically established based upon a fee per location, per device, or a specified percentage of net software license fees as set forth in the arrangement. These contracts are generally 12-36 months in length. Revenue is recognized ratably and evenly over the service period.

The Company also performs time and materials-based maintenance and repair work for customers. Revenue is recognized at a point in time when the performance obligation has been fully satisfied.

Media sales

Media revenues are derived from selling (i) sponsorship packages, including mobile takeover or physical presence, or (ii) advertising space to customers on digital displays or other outdoor structures, each within physical venues. We generally do not own the physical structures on which we display advertising for our customers but instead sell advertising or sponsorship opportunities on behalf of our media network owners to our brand customers. Media revenue services are recognized either on a straight-line basis over the available hours of advertising during the contracted period, or at the time of an event in the case of sponsorships.

Our media revenue contracts with customers range from four weeks to three years and billing commences at the beginning of the contract term, with payment generally due within ninety (90) days of billing. For the majority of our contracts, transaction prices are explicitly stated. Any contracts with transaction prices that contain multiple performance obligations are allocated primarily based on a relative standalone selling price basis. Any deferred revenues primarily consist of revenues paid in advance of being earned.

On a contract-by-contract basis, we evaluate whether we should be considered the principal (i.e., report revenues on a gross basis) or an agent (i.e., report revenues on a net basis). We are considered the principal in our arrangements and report revenues on a gross basis, wherein the amounts billed to customers are recorded as revenues and amounts paid to network owners are recorded as expenses. We are considered the principal because we control the advertising space before and after the contract term, are primarily responsible to our customers, and have discretion in pricing. For revenues generated through the use of a subcontracted advertising agency, commissions are calculated based on a stated percentage of gross advertising revenue and reported in the Consolidated Statement of Operations within Sales and Marketing expenses.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-9

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
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-Name Accounting Standards Codification
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-URI https://asc.fasb.org//1943274/2147479806/606-10-50-10

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
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-URI https://asc.fasb.org//1943274/2147479806/606-10-50-15

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
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-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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-Topic 606
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-Section 50
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-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Topic 606
-Publisher FASB
-URI https://asc.fasb.org//606/tableOfContent

+ Details

Note 6 - Supplemental Cash Flow Statement Information - Supplemental Cash Flow Statement Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Capitalized software in accounts payable	$ 369	$ 611
Property and equipment in accounts payable	10	0
Right-of-use assets obtained in exchange for new finance lease liabilities	40	0
Interest	287	321
Operating leases	188	75
Income taxes, net	$ 2	$ 0

Document And Entity Information - shares	3 Months Ended
Document And Entity Information - shares	Mar. 31, 2023	May 15, 2023
Document Information [Line Items]
Entity Central Index Key	0001356093
Entity Registrant Name	CREATIVE REALITIES, INC.
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2023
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
Document Transition Report	false
Entity File Number	001-33169
Entity Incorporation, State or Country Code	MN
Entity Tax Identification Number	41-1967918
Entity Address, Address Line One	13100 Magisterial Drive, Suite 100
Entity Address, City or Town	Louisville
Entity Address, State or Province	KY
Entity Address, Postal Zip Code	40223
City Area Code	502
Local Phone Number	791-8800
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		7,409,027
Warrant [Member]
Document Information [Line Items]
Title of 12(b) Security	Warrants to purchase Common Stock
Trading Symbol	CREXW
Security Exchange Name	NASDAQ
Common Stock [Member]
Document Information [Line Items]
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	CREX
Security Exchange Name	NASDAQ

Note 12 - Stock-based Compensation (Details Textual) $ / shares in Units, $ in Thousands					1 Months Ended		3 Months Ended		12 Months Ended	15 Months Ended
	Mar. 27, 2023	Jun. 15, 2022 USD ($) $ / shares shares	Jul. 10, 2020 shares	Jun. 01, 2020 shares	Mar. 31, 2023 USD ($) $ / shares shares	Sep. 30, 2018 shares	Mar. 31, 2023 USD ($) $ / shares shares	Mar. 31, 2022 USD ($)	Dec. 31, 2022 USD ($)	Mar. 31, 2023 USD ($) $ / shares shares	Sep. 01, 2025 shares	Aug. 11, 2020 shares	Aug. 31, 2018 shares	Oct. 30, 2014 shares
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term (Year)							6 years 8 months 12 days
Share-Based Payment Arrangement, Expensed and Capitalized, Amount \| $							$ 30		$ 45
Reverse Stock Split [Member]
Stockholders' Equity Note, Stock Split, Conversion Ratio	3		3		3	30	3
Stock Incentive Plan 2014 [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Exercise Price (in dollars per share) \| $ / shares					$ 7.59		$ 7.59			$ 7.59
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Authorized (in shares)			6,000,000			600,000						2,000,000	18,000,000	7,390,355
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number (in shares)											1,532,242
Amended and Restated 2006 Non-employee Director Stock Option Plan [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Authorized (in shares)					233,334		233,334			233,334
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number (in shares)					3,890		3,890			3,890
Chief Executive Officer [Member] \| Stock Incentive Plan 2014 [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross (in shares)				160,000
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Nonvested, Number of Shares (in shares)		106,667
Chief Financial Officer [Member] \| Stock Incentive Plan 2014 [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross (in shares)				80,000
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Nonvested, Number of Shares (in shares)		53,334
Share-Based Payment Arrangement, Option [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Revenue Target \| $		$ 38,000
Share-Based Compensation Arrangement by Share-Based Payment Award, EBITDA target \| $		$ 3,600
Share-Based Payment Arrangement, Option [Member] \| General and Administrative Expense [Member] \| Share-Based Payment Arrangement, Employee [Member]
Share-Based Payment Arrangement, Expense \| $							$ 225	$ 646
Share-Based Payment Arrangement, Option [Member] \| General and Administrative Expense [Member] \| Share-Based Payment Arrangement, Nonemployee [Member]
Share-Based Payment Arrangement, Expense \| $							43			$ 82
Share-Based Payment Arrangement, Option [Member] \| Stock Incentive Plan 2014 [Member] \| Share-Based Payment Arrangement, Tranche One [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Rights, Percentage				33.33%
Share-Based Payment Arrangement, Option [Member] \| Stock Incentive Plan 2014 [Member] \| Share-Based Payment Arrangement, Tranche Two [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Rights, Percentage				33.33%
Share-Based Payment Arrangement, Option [Member] \| Stock Incentive Plan 2014 [Member] \| Share-Based Payment Arrangement, Tranche Three [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Rights, Percentage				33.33%
Share-Based Payment Arrangement, Option [Member] \| Chief Executive Officer [Member] \| Stock Incentive Plan 2014 [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Expiration Period (Year)				10 years
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Year)				3 years
Share-Based Payment Arrangement, Option [Member] \| Chief Financial Officer [Member] \| Stock Incentive Plan 2014 [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Expiration Period (Year)				10 years
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Year)				3 years
New Options [Member] \| Stock Incentive Plan 2014 [Member]
Share-Based Payment Arrangement, Guaranteed Price (in dollars per share) \| $ / shares		$ 19.20
Share-Based Payment Arrangement, Expense \| $							$ 3
New Options [Member] \| Stock Incentive Plan 2014 [Member] \| Minimum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share) \| $ / shares							$ 0.63
New Options [Member] \| Stock Incentive Plan 2014 [Member] \| Maximum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share) \| $ / shares							$ 1.11
New Options [Member] \| Chief Executive Officer [Member] \| Stock Incentive Plan 2014 [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Expiration Period (Year)		10 years
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Nonvested, Number of Shares (in shares)		333,334
Share-Based Compensation Arrangements by Share-Based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in dollars per share) \| $ / shares		$ 3.00
New Options [Member] \| Chief Financial Officer [Member] \| Stock Incentive Plan 2014 [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Nonvested, Number of Shares (in shares)		200,000
New Options [Member] \| Non-executives [Member] \| Stock Incentive Plan 2014 [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross (in shares)							100,000
Time Vesting Awards [Member] \| Share-Based Payment Arrangement, Employee [Member]
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount \| $					$ 148		$ 148			148
Time Vesting Awards [Member] \| Share-Based Payment Arrangement, Nonemployee [Member]
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount \| $					107		107			107
Performance Vesting Awards [Member] \| Share-Based Payment Arrangement, Employee [Member]
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount \| $					$ 471		$ 471			$ 471

Note 10 - Income Taxes

3 Months Ended

Mar. 31, 2023

Notes to Financial Statements

Income Tax Disclosure [Text Block]

NOTE 10: INCOME TAXES

Our deferred tax assets are primarily related to net federal and state operating loss carryforwards (NOLs). We have substantial NOLs that are limited in usage by IRC Section 382. IRC Section 382 generally imposes an annual limitation on the amount of NOLs that may be used to offset taxable income when a corporation has undergone significant changes in stock ownership within a statutory testing period. We have performed a preliminary analysis of the annual NOL carryforwards and limitations that are available to be used against taxable income. Based on the history of losses of the Company, there continues to be a full valuation allowance against the net deferred tax assets of the Company with a definite life.

As of March 31, 2023, we reported tax liability of $43. As of March 31, 2023, the net deferred tax liabilities totaled $52 after valuation allowance, compared to net tax liabilities of $28 at December 31, 2022.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-URI https://asc.fasb.org//740/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
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-Paragraph 14
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-URI https://asc.fasb.org//1943274/2147482685/740-10-50-14

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
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-Name Accounting Standards Codification
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-Paragraph 21
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-URI https://asc.fasb.org//1943274/2147482685/740-10-50-21

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 17
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-Publisher FASB
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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-Topic 740
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-Name Accounting Standards Codification
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
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-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482603/740-30-50-2

+ Details

Note 11 - Warrants

3 Months Ended

Mar. 31, 2023

Notes to Financial Statements

Equity [Text Block]

NOTE 11: WARRANTS

A summary of outstanding warrants is included below:

	*Warrants*
						*Weighted*
				*Weighted*		*Average*
				*Average*		*Remaining*
				*Exercise*		*Contractual*
	*Amount*			*Price*		*Life*
Balance December 31, 2022		5,824,027		$	6.56		4.21
Warrants expired		(20,577	)		10.26		-
Balance March 31, 2023		5,803,450		$	6.54		3.97

On February 3, 2022, the Company, entered into a Securities Purchase Agreement with a purchaser (the “Purchaser”), pursuant to which the Company agreed to issue and sell to the Purchaser, in a private placement priced at-the-market under Nasdaq rules, (i) 438,334 shares (the “Shares”) of the Company’s common stock, par value $0.01 per share (the “Common Stock”) and accompanying warrants to purchase an aggregate of 438,334 shares of Common Stock, and (ii) pre-funded warrants to purchase up to an aggregate of 1,950,502 shares of Common Stock (the “Pre-Funded Warrants”) and accompanying warrants to purchase an aggregate of 1,950,502 shares of Common Stock (collectively, the “Private Placement”). The accompanying warrants to purchase Common Stock are referred to herein collectively as the “Common Stock Warrants.” Under the Securities Purchase Agreement, each Share and accompanying warrants to purchase Common Stock were sold together at a combined price of $4.605, and each Pre-Funded Warrant and accompanying warrants to purchase Common Stock were sold together at a combined price of $4.6047, for gross proceeds of approximately $11,000, before deducting placement agent fees and estimated offering expenses payable by the Company. During the three months ended March 31, 2022, each of the Pre-Funded Warrants were exercised. The Common Stock Warrants expire five years from the date of issuance. The Company evaluated the Pre-Funded Warrants and concluded that they met the criteria to be classified within stockholders’ equity, with proceeds recorded as common stock and additional paid-in-capital. The Company evaluated the Common Stock Warrant and concluded they do not meet the criteria to be classified within stockholders’ equity. The Common Stock Warrant include provisions which could result in a different settlement value, for the Common Stock Warrant depending on the registration status of the underlying shares. Because these conditions were not an input into the pricing of a fixed-for-fixed option on the Company’s ordinary shares, the Common Stock Warrant is not considered to be indexed to the Company’s own stock. The Company recorded these warrants as liabilities on the Condensed Consolidated Balance Sheets at fair value, with subsequent changes in their respective fair values recognized in the Condensed Consolidated Statements of Operations at each reporting date. At the date of issuance, the Company performed a Black-Scholes valuation of the warrants, resulting in a fair value of $3.2781 per warrant. At March 31, 2022, the Company reassessed the fair value of these warrants via Black Scholes valuation methodology and determined that the fair value of these warrants was $1.7445 per warrant, resulting in the Company recording a gain on the fair value of these warrants of $3,664 in the Condensed Consolidated Statement of Operations for the three months ended March 31, 2022.

On February 17, 2022, in connection with the Credit Agreement with Slipstream, the Company issued to Slipstream 1,731,499 warrants with an exercise price of $6.00 per share which expire five years from the date of issuance (the “Lender Warrant”). These warrants are not exercisable until 180 days after the issuance date. The common shares underlying these warrants have not yet been registered for resale under the Securities Act of 1933, which provides Slipstream with an option for cashless exercise once the warrant becomes exercisable until such time as such registration occurs. The Lender Warrants expire five years from the date of issuance. The Company evaluated the Lender Warrant and concluded that it does not meet the criteria to be classified within stockholders’ equity. The Lender Warrant includes provisions which could result in a different settlement value, for the Lender Warrant depending on the registration status of the underlying shares. Because these conditions are not an input into the pricing of a fixed-for-fixed option on the Company’s ordinary shares, the Lender Warrant is not considered to be indexed to the Company’s own stock. The Company recorded these warrants as liabilities on the consolidated balance sheets at fair value, with subsequent changes in their respective fair values recognized in the Condensed Consolidated Statements of Operations at each reporting date. At the date of issuance, the Company performed a Black-Scholes valuation of the warrants, resulting in a fair value of $2.4387 per warrant. In recording the warrant liability, the Company recorded an increase in debt discount in the Condensed Consolidated Balance Sheet associated with the issuance of the warrants of $4,223, which is being amortized through interest expense in the Condensed Consolidated Statement of Operations over the life of the Acquisition Term Loan and Consolidation Term Loans. At March 31, 2022, the Company reassessed the fair value of these warrants via Black Scholes valuation methodology and determined that the fair value of these warrants was $1.626 per warrant, resulting in the Company recording a gain on the fair value of these warrants of $1,408 in the Condensed Consolidated Statement of Operations for the three months ended March 31, 2022.

On February 17, 2022, in connection with obtaining a waiver of certain restrictions in investment documents between an investor and the Company in order to consummate the financing contemplated by the Credit Agreement, the Company paid consideration to such investor in the form of a warrant (the “Purchaser Warrant”) to purchase 466,667 shares of Company common stock in an at-the-market offering under Nasdaq rules. The number of shares of Company common stock subject to the Purchaser Warrant is equal to the waiver fee ($175) divided by $0.375 per share. The exercise price of the Purchaser Warrant is $4.23 per share, and the Purchaser Warrant is not exercisable until August 17, 2022. The Purchaser Warrant expires five years from the date of issuance. The Company evaluated the Purchaser Warrant and concluded that it does not meet the criteria to be classified within stockholders’ equity. The Purchaser Warrant includes provisions which could result in a different settlement value, for the Purchaser Warrant depending on the registration status of the underlying shares. Because these conditions were not an input into the pricing of a fixed-for-fixed option on the Company’s ordinary shares, the Purchaser Warrant is not considered to be indexed to the Company’s own stock. The Company recorded these warrants as liabilities on the Condensed Consolidated Balance Sheets at fair value, with subsequent changes in their respective fair values recognized in the Condensed Consolidated Statements of Operations at each reporting date. At the date of issuance, the Company performed a Black-Scholes valuation of the Purchaser Warrant, resulting in a fair value of $2.5968 per warrant. In recording the warrant liability, the Company recorded an expense in the Condensed Consolidated Statement of Operations associated with the issuance of the Purchaser Warrant of $1,211. At March 31, 2022, the Company reassessed the fair value of the Purchase Warrant via Black Scholes valuation methodology and determined that the fair value of the Purchaser Warrant was $1.7445 per warrant, resulting in the Company recording a gain on the fair value of the Purchaser Warrant of $397 in the Condensed Consolidated Statement of Operations for the three months ended March 31, 2022.

Effective June 30, 2022, the Company amended the terms of the Common Stock Warrant (2,388,836 warrants), Lender Warrant (1,731,499 warrants) and Purchaser Warrant (466,667 warrants). The amendments to such warrants removes the holder’s option to determine the value of such warrants utilizing the VWAP of the Company’s common stock on the trading day immediately preceding the date of a notice in a cashless exercise, and removes the condition to exercising such warrants that the Company’s shareholders approve the exercise thereof (which has already been obtained). The amendments to the warrants also extend the term of such warrants for an additional one year, such that the Common Stock Warrant will expire on February 3, 2028, and the Lender Warrant and Purchaser Warrant will expire on February 17, 2028

The foregoing amendments to the warrants resulted in such warrants to be accounted for as equity instruments on the Company’s Condensed Consolidated Financial Statements as of June 30, 2022. As such, the Company reclassified the warrant liability from noncurrent liabilities to additional paid-in-capital as of June 30, 2022. These amounts are reflected as additional paid-in-capital in the Condensed Consolidated Balance Sheet as of December 31, 2022.

- Definition

The entire disclosure for equity.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-14

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 505
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481004/946-505-50-6

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 40
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480237/815-40-50-6

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480008/505-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(e)(1))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 505
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//505/tableOfContent

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-14

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-14

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 16
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-16

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 18
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-18

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 18
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-18

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 18
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-18

+ Details

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	66,666,000	66,666,000
Common stock, shares issued (in shares)	7,394,000	7,266,000
Common stock, shares outstanding (in shares)	7,394,000	7,266,000
Related Party [Member] \| Consolidated Term Loan [Member]
Loans payable, discount, current	$ 747	$ 745
Loans payable, discount, noncurrent	654	840
Related Party [Member] \| Acquisition Term Loan [Member]
Loans payable, discount, noncurrent	$ 1,312	$ 1,484

Note 6 - Supplemental Cash Flow Statement Information

3 Months Ended

Mar. 31, 2023

Notes to Financial Statements

Cash Flow, Supplemental Disclosures [Text Block]

NOTE 6: SUPPLEMENTAL CASH FLOW STATEMENT INFORMATION

	*Three Months Ended*
	*March 31,*
	*2023*		*2022*
Supplemental non-cash Investing activities
Capitalized software in accounts payable	$	369	$	611
Property and equipment in accounts payable	$	10	$	-
Right-of-use assets obtained in exchange for new finance lease liabilities	$	40	$	-

Supplemental disclosure information for cash flow
Cash paid during the period for:
Interest	$	287	$	321
Operating leases	$	188	$	75
Income taxes, net	$	2	$	-

Note 9 - Commitments and Contingencies

3 Months Ended

Mar. 31, 2023

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

NOTE 9: COMMITMENTS AND CONTINGENCIES

On August 2, 2019, the Company filed suit in Jefferson Circuit Court, Kentucky, against a supplier of the Company’s wholly owned subsidiary, Allure, for breach of contract, breach of warranty, and negligence with respect to equipment installations performed by such supplier for an Allure customer. On October 10, 2019, the Allure customer that is the basis of our claim above sent a demand to the Company for payment of $3,200 as settlement for an alleged breach of contract related to hardware failures of equipment installations performed by Allure between November 2017 and August 2018. On March 10, 2023, the Company, the supplier and the Allure customer reached a Settlement Agreement and Release of Claims ("Settlement Agreement"). Pursuant to the Settlement Agreement, the Company is obligated to pay $733; however, its insurer agreed to pay $700 of that amount. Thus, the Company paid $33 of the settlement amount in April 2023.

Except as noted above, the Company is not party to any other material legal proceedings, other than ordinary routine litigation incidental to the business, and there were no other such proceedings pending during the period covered by this Report.

Note 10 - Income Taxes (Details Textual) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Deferred Tax Liabilities, Gross	$ 43
Deferred Tax Liabilities, Net	$ 52	$ 28

Note 12 - Stock-based Compensation - Summary of Share Vesting Activity (Details) - New Options [Member] - Stock Incentive Plan 2014 [Member]	Jun. 15, 2022 shares
Vesting at Share Price of 2.00 [Member]
Percentage of Shares Vested	5.00%
Vesting at Share Price Target of $3.00 [Member]
Percentage of Shares Vested	10.00%
Vesting at Share Price Target of $4.00 [Member]
Percentage of Shares Vested	15.00%
Vesting at Share Price Target of $5.00 [Member]
Percentage of Shares Vested	20.00%
Vesting at Share Price Target of $6.00 [Member]
Percentage of Shares Vested	25.00%
Vesting at Guaranteed Price [Member]
Percentage of Shares Vested	25.00%
Chief Executive Officer [Member]
Options expected to vest (in shares)	333,334
Chief Executive Officer [Member] \| Vesting at Share Price of 2.00 [Member]
Options expected to vest (in shares)	16,667
Chief Executive Officer [Member] \| Vesting at Share Price Target of $3.00 [Member]
Options expected to vest (in shares)	33,334
Chief Executive Officer [Member] \| Vesting at Share Price Target of $4.00 [Member]
Options expected to vest (in shares)	50,000
Chief Executive Officer [Member] \| Vesting at Share Price Target of $5.00 [Member]
Options expected to vest (in shares)	66,667
Chief Executive Officer [Member] \| Vesting at Share Price Target of $6.00 [Member]
Options expected to vest (in shares)	83,333
Chief Executive Officer [Member] \| Vesting at Guaranteed Price [Member]
Options expected to vest (in shares)	83,333
Chief Financial Officer [Member]
Options expected to vest (in shares)	200,000
Chief Financial Officer [Member] \| Vesting at Share Price of 2.00 [Member]
Options expected to vest (in shares)	10,000
Chief Financial Officer [Member] \| Vesting at Share Price Target of $3.00 [Member]
Options expected to vest (in shares)	20,000
Chief Financial Officer [Member] \| Vesting at Share Price Target of $4.00 [Member]
Options expected to vest (in shares)	30,000
Chief Financial Officer [Member] \| Vesting at Share Price Target of $5.00 [Member]
Options expected to vest (in shares)	40,000
Chief Financial Officer [Member] \| Vesting at Share Price Target of $6.00 [Member]
Options expected to vest (in shares)	50,000
Chief Financial Officer [Member] \| Vesting at Guaranteed Price [Member]
Options expected to vest (in shares)	50,000

Note 5 - Business Combination - Components of Preliminary Purchase Price Allocation (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022	Feb. 17, 2022	Nov. 12, 2021
Goodwill	$ 26,453	$ 26,453
Reflect Systems, Inc. [Member]
Accounts receivable			$ 1,359
Inventory			190
Prepaid expenses & other current assets			666
Property and equipment			96	$ 96
Operating right of use assets			555
Other assets			36
Goodwill			18,935
Accounts payable			(104)
Accrued expenses			(483)
Customer deposits			(1,661)
Deferred revenues			(1,259)
Current maturities of operating leases			(277)
Long-term obligations under operating leases			(278)
Other liabilities			(205)
Net consideration transferred			34,730
Reflect Systems, Inc. [Member] \| Trade Names [Member]
Identified intangible assets			960
Reflect Systems, Inc. [Member] \| Developed Technology Rights [Member]
Identified intangible assets			5,130
Reflect Systems, Inc. [Member] \| Noncompete Agreements [Member]
Identified intangible assets			11,040
Reflect Systems, Inc. [Member] \| Customer Relationships [Member]
Identified intangible assets			$ 30

Note 1 - Nature of Organization and Operations

3 Months Ended

Mar. 31, 2023

Notes to Financial Statements

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

NOTE 1: NATURE OF ORGANIZATION AND OPERATIONS

Unless the context otherwise indicates, references in these Notes to the accompanying Condensed Consolidated Financial Statements to “we,” “us,” “our” and “the Company” refer to Creative Realities, Inc. and its subsidiaries.

Nature of the Company’s Business

Creative Realities, Inc. is a Minnesota corporation that provides innovative digital marketing technology and solutions to retail companies, individual retail brands, enterprises and organizations throughout the United States and in certain international markets. The Company has expertise in a broad range of existing and emerging digital marketing technologies, as well as the related media management and distribution software platforms and networks, device management, product management, customized software service layers, systems, experiences, workflows, and integrated solutions. Our technology and solutions include: digital merchandising systems and omni-channel customer engagement systems, interactive digital shopping assistants, advisors and kiosks, and other interactive marketing technologies such as mobile, social media, point-of-sale transactions, beaconing and web-based media that enable our customers to transform how they engage with consumers. We have expertise in a broad range of existing and emerging digital marketing technologies, as well as the following related aspects of our business: content, network management, and connected device software and firmware platforms; customized software service layers; hardware platforms; digital media workflows; and proprietary processes and automation tools.

Our main operations are conducted directly through Creative Realities, Inc., and under our wholly owned subsidiaries Allure Global Solutions, Inc. ("Allure), a Georgia corporation, Creative Realities Canada, Inc., a Canadian corporation, and Reflect Systems, Inc. ("Reflect"), a Delaware corporation.

Reverse stock split

On March 23, 2023, the Company filed Articles of Amendment with the Secretary of State of the State of Minnesota to effectuate, effective March 27, 2023, a 1-for-3 reverse stock split of the shares of the Company's common stock, par value $0.01 per share. All share and per share information (including share and per share information related to share-based compensation) has been retroactively adjusted to reflect the reverse stock split within this Quarterly Report on Form 10-Q.

As a result of the reverse stock split, effective 12:01 am on March 27, 2023, every three shares of common stock then-issued and outstanding automatically combined into one share of common stock, with no change in par value per share. No fractional shares were outstanding following the reverse stock split and any fractional shares resulting from the reverse split were rounded up to the nearest whole share of common stock. In connection with the reverse stock split, the total number of shares of common stock authorized for issuance was reduced from 200,000,000 shares to 66,666,666 shares in proportion to the reverse stock split.

Effective as of the same time as the reverse stock split, the number of shares of common stock available for issuance under the Company's equity compensation plans were reduced in proportion to the reverse stock split. The reverse stock split also resulted in reductions in the number of shares of common stock issuable upon exercising or vesting of equity awards in proportion to the reverse stock split and proportionate increases in exercise price or share-based performance criteria, if any, applicable to such awards. Similarly, the number of shares of common stock issuable upon exercise of outstanding warrants were reduced in proportion to the reverse stock split, and the exercise prices of outstanding warrants were proportionately increased.

Liquidity and Financial Condition

The accompanying Condensed Consolidated Financial Statements have been prepared on the basis of the realization of assets and the satisfaction of liabilities and commitments in the normal course of business and do not include any adjustments to the recoverability and classifications of recorded assets and liabilities as a result of uncertainties.

At March 31, 2023, we have an accumulated deficit of $51,409, negative working capital of $3,822 and cash of $3,905. For the three months ended March 31, 2023, we incurred an operating loss of $90 and cash inflows from operations of $3,868. Our history of operating losses and near term cash obligations are indicators of substantial doubt about our ability to continue as a going concern. We obtained a continuing support letter from Slipstream Communications, LLC ("Slipstream") through May 31, 2024, which alleviated the substantial doubt about our ability to continue as a going concern. We can provide no assurance that our ongoing operational efforts will be successful, which could have a material adverse effect on our results of operations and cash flows.

Note 7 - Intangible Assets Including Goodwill - Intangible Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets, Gross	$ 35,972	$ 35,151
Finite-Lived Intangible Assets, Accumulated Amortization	12,153	11,399
Net book value of amortizable intangible assets	23,819	23,752
Technology-Based Intangible Assets [Member]
Finite-Lived Intangible Assets, Gross	9,765	9,765
Finite-Lived Intangible Assets, Accumulated Amortization	4,546	4,354
Purchased and Developed Software [Member]
Finite-Lived Intangible Assets, Gross	5,044	4,682
Finite-Lived Intangible Assets, Accumulated Amortization	3,561	3,375
In-process Internally Developed Software Platform [Member]
Finite-Lived Intangible Assets, Gross	4,533	4,074
Finite-Lived Intangible Assets, Accumulated Amortization	0	0
Customer Relationships [Member]
Finite-Lived Intangible Assets, Gross	15,000	15,000
Finite-Lived Intangible Assets, Accumulated Amortization	3,173	2,849
Trademarks and Trade Names [Member]
Finite-Lived Intangible Assets, Gross	1,600	1,600
Finite-Lived Intangible Assets, Accumulated Amortization	856	808
Noncompete Agreements [Member]
Finite-Lived Intangible Assets, Gross	30	30
Finite-Lived Intangible Assets, Accumulated Amortization	$ 17	$ 13

Note 8 - Loans Payable

3 Months Ended

Mar. 31, 2023

Notes to Financial Statements

Debt Disclosure [Text Block]

NOTE 8: LOANS PAYABLE

The outstanding debt with detachable warrants, as applicable, are shown in the table below. Further discussion of the debt follows.

As of March 31, 2023

Issuance

Maturity

Debt Type

Date

Principal

Date

Warrants

Interest Rate Information

2/17/2022

10,000

2/15/2025

833,334

8.0% interest⁽¹⁾

2/17/2022

1,146

2/17/2024

4.60% interest⁽²⁾

2/17/2022

7,185

2/15/2025

898,165

10.0% interest⁽³⁾

10/31/2022

1,750

9/1/2023

12.5% interest⁽⁴⁾

Total debt, gross

20,081

1,731,499

Debt discount

(2,713

)

Total debt, net

17,368

Less current maturities

(4,944

)

Long term debt

12,424

As of December 31, 2022

Issuance

Maturity

Debt Type

Date

Principal

Date

Warrants

Interest Rate Information

2/17/2022

10,000

2/15/2025

833,334

8.0% interest⁽¹⁾

2/17/2022

1,456

2/17/2024

0.59% interest⁽²⁾

2/17/2022

7,185

2/15/2025

898,165

10.0% interest⁽³⁾

10/31/2022

2,000

9/1/2023

12.5% interest⁽⁴⁾

Total debt, gross

20,641

1,731,499

Debt discount

(3,069

)

Total debt, net

17,572

Less current maturities

(4,499

)

Long term debt

13,073

A – Acquisition Term Loan with related party

B – Secured Promissory Note

C – Consolidation Term Loan with related party

D – Term Loan (2022) with related party

(1)	8.0% cash interest per annum through maturity at February 15, 2025.
(2)	Annual interest rate on the outstanding principal increased from 0.59% to 4.60% per annum effective February 17, 2023 through maturity at February 17, 2024. Annual interest rate was 0.59% cash interest per annum (the applicable federal rate) through February 17, 2023.
(3)	10.0% cash interest per annum through maturity date at February 15, 2025.
(4)	Interest was paid-in-kind through October 2021, at which point interest became payable in cash at the stated interest rates through maturity.

Secured Promissory Note

On February 17, 2022, in connection with the Closing, the Company issued to RSI Exit Corporation (“Stockholders’ Representative”), the representative of Reflect stockholders, a $2,500 Note and Security Agreement (the “Secured Promissory Note”).

The Secured Promissory Note accrued interest at 0.59% per annum (the applicable federal rate on the date of issuance of the Secured Promissory Note) and required the Company and Reflect to collectively pay equal monthly principal installments of $104 on the fifteenth (15th) day of each month, commencing on March 15, 2022. Any remaining or unpaid principal was due and payable on February 17, 2023. All payments under the Secured Promissory Note are paid to the escrow agent in the Merger Agreement to be placed into the escrow account to secure the Reflect stockholders’ indemnification obligations until released on February 17, 2023 (the one-year anniversary of the Closing), at which time any remaining proceeds not subject to a pending indemnification claim would be paid to the exchange agent for payment to the Reflect stockholders pursuant to the Merger Agreement. The Secured Promissory Note is secured by a first-lien security interest in certain contracts of Reflect, including obligations arising out of those certain contracts. The Company has the right to offset amounts payable under the Secured Promissory Note upon a final, non-appealable decision of a court that entitles the Company or its affiliates to any damages for indemnification under the Merger Agreement, or the Stockholders’ Representative’s agreement in writing to such damages.

On February 11, 2023, the Company and the Stockholders’ Representative executed an amendment (the “Note Amendment”) to the Secured Promissory Note. The Note Amendment eliminates the balloon payment, extending the maturity date for a one-year period, to February 17, 2024. During the extended period, the Company will continue to make monthly principal payments of $104, and the annual interest rate on the outstanding principal increased from 0.59% to 4.60%, which will accrue and is payable in full on the new maturity date.

Second Amended and Restated Loan and Security Agreement

On February 17, 2022, the Company and its subsidiaries (collectively, the “Borrowers”) refinanced their debt facilities with Slipstream, pursuant to a Second Amended and Restated Credit and Security Agreement (the “Credit Agreement”). The Borrowers include Reflect, which became a wholly owned subsidiary of the Company as a result of the Closing on February 17, 2022. The debt facilities continue to be fully secured by all assets of the Borrowers.

The Credit Agreement also provides that the Company’s outstanding loans from Slipstream at December 31, 2021, consisting of its pre-existing $4,767 senior secured term loan and $2,418 secured convertible loan, with an aggregate of $7,185 in outstanding principal and accrued and unpaid interest under such loans, were consolidated into a term loan (the “Consolidation Term Loan”). The Consolidation Term Loan has an interest rate of 10.0%, with 75.0% warrant coverage (or 898,165 warrants). On the first day of each month, commencing March 1, 2022 through February 1, 2025, the Borrowers will make interest-only payments on the Consolidation Term Loan. Commencing on September 1, 2023, and on the first day of each month thereafter until the Maturity Date, the Borrowers will make a payment on the Consolidation Term Loan, in an equal monthly installment of principal sufficient to fully amortize the Consolidation Term Loan in eighteen equal installments. The Company assessed the combination of the pre-existing senior secured term loan and secured convertible loan in accordance with ASC 470 Debt and determined the transaction should be accounted for as an extinguishment, in part as the Consolidation Term Loan eliminated a substantive conversion feature. In aggregate the Company recorded a loss on extinguishment of $295 during the three month period ending March 31, 2022, primarily associated with the write-off of pre-existing debt discounts.

In addition to refinancing the existing debt with Slipstream, the Company issued to Slipstream a $10,000, 36-month senior secured term loan (the “Acquisition Term Loan”) resulting in $10,000 in gross proceeds, or $9,950 in net proceeds. The Acquisition Term Loan matures on February 17, 2025 (the “Maturity Date”) and has an interest rate of 8.0%, with 50.0% warrant coverage (or 833,334 warrants). On the first day of each month, commencing March 1, 2022 through February 1, 2025, the Borrowers will make interest-only payments on the Acquisition Term Loan. No principal payments on the Acquisition Term Loan are payable until the Maturity Date.

In connection with the Acquisition Term Loan and Consolidation Term Loan warrant coverage, the Company issued to Slipstream a warrant to purchase an aggregate of 1,731,499 shares of Company common stock (the “Lender Warrant”). The Lender Warrant has a five-year term, an initial exercise price of $6.00 per share, subject to adjustments in the Lender Warrant, and was not exercisable until August 17, 2022. The warrants were assessed in accordance with ASC 470 and ASC 815 Derivatives and were deemed to represent bifurcated derivative instruments that should be recorded as liabilities in the Condensed Consolidated Balance Sheets. The Company performed a Black-Scholes valuation of the warrants as of the issuance date, resulting in a fair value of $2.4387 per warrant. In recording the warrant liability, the Company recorded a debt discount associated with each of the Acquisition and Consolidation Term Loans in an amount of $2,032 and $2,190, respectively. These amounts are being amortized straight-line through interest expense over the life of the loans, resulting in incremental interest expense of $356 and $162 for the three months ended March 31, 2023 and 2022, respectively. The Company has deemed straight-line amortization to be materially consistent with the effective interest method.

In certain circumstances, upon a fundamental transaction of the Company (e.g., a disposal or sale of all or the greater part of the assets or undertaking of the Company, an amalgamation or merger with another company, or implementation of a scheme of arrangement), the holder of the Lender Warrant will have the right to require the Company to repurchase the Lender Warrant at its fair value using a Black Scholes option pricing formula; provided that such holder may not require the Company or its successor entity to repurchase the Lender Warrant for the Black Scholes value in connection with a fundamental transaction that is not approved by the Company’s Board of Directors, and therefore not within the Company’s control.

Effective June 30, 2022, the Company amended the terms of the Lender Warrant to remove the holder’s option to exercise such warrant on a cashless basis utilizing the VWAP of the Company’s common stock on the trading day immediately preceding the date of a notice of cashless exercise in certain circumstances, and remove the condition to exercising such warrant that the Company’s shareholders approve the exercise thereof (which has already been obtained). The amendments to the Lender Warrant also extend the term of such warrants for an additional one year, such that the Lender Warrant will expire on February 17, 2028. The foregoing amendments to the Lender Warrant caused such warrants to be accounted for as equity instruments in the Company’s Consolidated Financial Statements.

On October 31, 2022, the Borrowers and Slipstream amended the Credit Agreement to provide the Borrowers with a $2,000 term loan ("Term Loan (2022)"), the net proceeds of which were used by the Company to accelerate an active software development project with potential to expand SaaS revenues associated with an existing customer. The Term Loan (2022) has an annual interest rate of 12.5% and matures on September 1, 2023. Commencing on February 1, 2023, the Borrowers will make monthly installment payments of approximately $270 until the maturity date, consisting of principal and interest sufficient to fully amortize the Term Loan (2022) through the maturity date.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 470
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//470/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1E
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1E

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

+ Details

Note 12 - Stock-based Compensation - Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions (Details) - Stock Incentive Plan 2014 [Member] - New Options [Member]	3 Months Ended
	Mar. 31, 2023
Risk-free interest rate	3.30%
Expected term (in years) (Year)	2 years 8 months 4 days
Expected price volatility	123.53%
Dividend yield	0.00%

Note 11 - Warrants (Tables)

3 Months Ended

Mar. 31, 2023

Notes Tables

Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block]

	*Warrants*
						*Weighted*
				*Weighted*		*Average*
				*Average*		*Remaining*
				*Exercise*		*Contractual*
	*Amount*			*Price*		*Life*
Balance December 31, 2022		5,824,027		$	6.56		4.21
Warrants expired		(20,577	)		10.26		-
Balance March 31, 2023		5,803,450		$	6.54		3.97

Note 12 - Stock-based Compensation - Summary of Outstanding Options (Details)	3 Months Ended
	Mar. 31, 2023 $ / shares shares
Time Vesting Options [Member]
Shares Outstanding (in shares) \| shares	662,798
Outstanding, Weighted Average Remaining Contractual Term (Year)	6 years 8 months 19 days
Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 10.00
Shares Exercisable (in shares) \| shares	476,685
Time Vesting Options [Member] \| Range One [Member]
Lower Range Limit (in dollars per share)	$ 4.01
Upper Range Limit (in dollars per share)	$ 8.00
Shares Outstanding (in shares) \| shares	566,673
Outstanding, Weighted Average Remaining Contractual Term (Year)	7 years 4 months 20 days
Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 7.42
Shares Exercisable (in shares) \| shares	380,560
Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 7.40
Time Vesting Options [Member] \| Range Two [Member]
Lower Range Limit (in dollars per share)	$ 8.01
Shares Outstanding (in shares) \| shares	96,125
Outstanding, Weighted Average Remaining Contractual Term (Year)	2 years 9 months 10 days
Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 25.22
Shares Exercisable (in shares) \| shares	96,125
Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 25.22
Performance Vesting Awards [Member]
Shares Outstanding (in shares) \| shares	240,000
Outstanding, Weighted Average Remaining Contractual Term (Year)	7 years 2 months 4 days
Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 7.59
Shares Exercisable (in shares) \| shares	240,000
Performance Vesting Awards [Member] \| Range One [Member]
Lower Range Limit (in dollars per share)	$ 4.01
Upper Range Limit (in dollars per share)	$ 8.00
Shares Outstanding (in shares) \| shares	240,000
Outstanding, Weighted Average Remaining Contractual Term (Year)	7 years 2 months 4 days
Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 7.59
Shares Exercisable (in shares) \| shares	240,000
Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 7.59
Market Vesting Options [Member]
Shares Outstanding (in shares) \| shares	633,334
Outstanding, Weighted Average Remaining Contractual Term (Year)	1 year 10 months 20 days
Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 3.00
Shares Exercisable (in shares) \| shares	0
Market Vesting Options [Member] \| Range One [Member]
Lower Range Limit (in dollars per share)	$ 0.01
Upper Range Limit (in dollars per share)	$ 4.00
Shares Outstanding (in shares) \| shares	633,334
Outstanding, Weighted Average Remaining Contractual Term (Year)	1 year 10 months 20 days
Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 3.00
Shares Exercisable (in shares) \| shares	0
Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 0

Note 7 - Intangible Assets Including Goodwill (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Amortization of Intangible Assets	$ 754	$ 680

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Sales
Total sales	$ 9,944	$ 10,757
Cost of sales
Total cost of sales	4,855	6,865
Gross profit	5,089	3,892
Operating expenses:
Sales and marketing expenses	1,136	707
Research and development expenses	366	241
General and administrative expenses	2,898	2,860
Depreciation and amortization expense	779	707
Deal and transaction expenses	0	391
Total operating expenses	5,179	4,906
Operating loss	(90)	(1,014)
Other income (expenses):
Interest expense, including amortization of debt discount	(803)	(449)
Change in fair value of equity guarantee	(76)	0
Loss on extinguishment/settlement of obligations	0	(295)
Other income	12	6
Total other income (expense)	(867)	3,519
Net (loss) income before income taxes	(957)	2,505
Provision for income taxes	(43)	(3)
Net (loss) income	$ (1,000)	$ 2,502
Basic (loss) earnings per common share (in dollars per share)	$ (0.14)	$ 0.51
Diluted (loss) earnings per common share (in dollars per share)	$ (0.14)	$ 0.51
Weighted average shares outstanding - basic (in shares)	7,351	4,873
Weighted average shares outstanding - diluted (in shares)	7,351	4,873
Warrants in Debt and Equity Offerings to Finance Merger [Member]
Other income (expenses):
Change in fair value of warrant	$ 0	$ 5,469
Purchaser Warrant [Member]
Other income (expenses):
Change in fair value of warrant		(397)
Loss on debt waiver consent	0	(1,212)
Hardware [Member]
Sales
Total sales	4,322	6,459
Cost of sales
Total cost of sales	3,206	5,382
Service and Other [Member]
Sales
Total sales	5,622	4,298
Cost of sales
Total cost of sales	$ 1,649	$ 1,483

Note 6 - Supplemental Cash Flow Statement Information (Tables)

3 Months Ended

Mar. 31, 2023

Notes Tables

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

	*Three Months Ended*
	*March 31,*
	*2023*		*2022*
Supplemental non-cash Investing activities
Capitalized software in accounts payable	$	369	$	611
Property and equipment in accounts payable	$	10	$	-
Right-of-use assets obtained in exchange for new finance lease liabilities	$	40	$	-

Supplemental disclosure information for cash flow
Cash paid during the period for:
Interest	$	287	$	321
Operating leases	$	188	$	75
Income taxes, net	$	2	$	-

Note 12 - Stock-based Compensation - Stock Option Activity (Details)	3 Months Ended
	Mar. 31, 2023 $ / shares shares
Market Vesting Options [Member]
Balance, Number (in shares) \| shares	633,334
Balance, Weighted Average Exercise Price (in dollars per share) \| $ / shares	$ 3.00
Forfeited or expired, Number (in shares) \| shares	0
Forfeited or expired, Weighted Average Exercise Price (in dollars per share) \| $ / shares	$ 0
Balance, Number (in shares) \| shares	633,334
Balance, Weighted Average Exercise Price (in dollars per share) \| $ / shares	$ 3.00
Time Vesting Options [Member]
Balance, Number (in shares) \| shares	662,910
Balance, Weighted Average Exercise Price (in dollars per share) \| $ / shares	$ 10.02
Forfeited or expired, Number (in shares) \| shares	(112)
Forfeited or expired, Weighted Average Exercise Price (in dollars per share) \| $ / shares	$ 162.00
Balance, Number (in shares) \| shares	662,798
Balance, Weighted Average Exercise Price (in dollars per share) \| $ / shares	$ 10.00
Performance Vesting Options [Member]
Balance, Number (in shares) \| shares	240,000
Balance, Weighted Average Exercise Price (in dollars per share) \| $ / shares	$ 7.59
Forfeited or expired, Number (in shares) \| shares	0
Forfeited or expired, Weighted Average Exercise Price (in dollars per share) \| $ / shares	$ 0
Balance, Number (in shares) \| shares	240,000
Balance, Weighted Average Exercise Price (in dollars per share) \| $ / shares	$ 7.59

Note 5 - Business Combination

3 Months Ended

Mar. 31, 2023

Notes to Financial Statements

Business Combination Disclosure [Text Block]

NOTE 5: BUSINESS COMBINATION

On November 12, 2021, the Company and Reflect, entered into an Agreement and Plan of Merger (as amended on February 8, 2022 and February 11, 2023, the “Merger Agreement") pursuant to which a direct, wholly owned subsidiary of Creative Realities, CRI Acquisition Corporation, or “Merger Sub,” would merge with and into Reflect, with Reflect surviving the merger and becoming our wholly owned subsidiary, which transaction is referred to herein as the “Merger.” On February 17, 2022, the parties consummated the Merger (the "Closing").

Reflect provides digital signage solutions, including software, strategic and media services to a wide range of companies across the retail, financial, hospitality and entertainment, healthcare, and employee communications industries in North America. Reflect offers digital signage platforms, including ReflectView, a platform used by companies to power hundreds of thousands of active digital displays. Through its strategic services, Reflect assists its customers with designing, deploying and optimizing their digital signage networks, and through its media services, Reflect assists customers with monetizing their digital advertising networks.

Subject to the terms and conditions of the Merger Agreement, at the Closing, Reflect stockholders as of the effective time of the Merger collectively received from the Company, in the aggregate, the following Merger consideration: (i) $16,166 in cash, (ii) 777,778 shares of common stock of Creative Realities (valued based on an issuance price of $6 per share) (the “CREX Shares”), (iii) the Secured Promissory Note (as described below), and (iv) supplemental cash payments (the “Guaranteed Consideration”), if any, payable on or after February 17, 2025 (subject to the Extension Option described below, the “Guarantee Date”), in an amount by which the value of the CREX Shares on such anniversary is less than $19.20 per share, or if certain customers of Reflect collectively achieve over 85,000 billable devices online at any time on or before December 31, 2022, is less than $21.60 per share (such applicable amount, the “Guaranteed Price”), multiplied by the amount of CREX Shares held by the Reflect stockholders on the Guarantee Date (subject to the Extension Option described below). At or before December 31, 2022, the condition of certain customers of Reflect collectively to achieve over 85,000 billable devices online was not met. Accordingly, the contingent cash payment amount was reduced at December 31, 2022 from $21.60 per share to $19.20 per share, a reduction of $2.40 per share.

The Company may exercise an extension option (the “Extension Option”) to extend the Guarantee Date by six (6) months, from February 17, 2025 to August 17, 2025, if (i) the Extension Threshold Price is greater than or equal to 70% of the Guaranteed Price described above, and (ii) the Company provides written notice of its election to exercise the Extension Option no later than February 7, 2025. The “Extension Threshold Price” means the average closing price per share of Creative Realities common stock as reported on the Nasdaq Capital Market (or NYSE) in the fifteen (15) consecutive trading day period ending February 2, 2025. If the Extension Threshold Price is less than 80% of the Guaranteed Price, then the Guaranteed Price will be increased by $3.00 per share.

In connection with the Merger, the Company adopted a Retention Bonus Plan and raised capital to, among other things, pay the cash portion of the Merger consideration. The Retention Bonus Plan is described below.

Retention Bonus Plan

On February 17, 2022, in connection with the Closing, the Company adopted a Retention Bonus Plan, pursuant to which the Company is required to pay to key members of Reflect’s management team an aggregate of $1,334 in cash, which was paid 50% at the Closing, and subject to continuous employment with Reflect or Creative Realities, 25% was paid on February 17, 2023 (the one-year anniversary of Closing) and 25% will be paid on February 17, 2024 (the two-year anniversary of the Closing). In connection with the closing of the Merger, the future cash payments due on the one-year and two-year anniversaries of the Closing were deposited into an escrow agreement. The Retention Bonus Plan also requires the Company to issue Common Stock having an aggregate value of $667 to the plan participants as follows: 50% of the value of such shares were issued at the Closing, and subject to continuous employment with Reflect or Creative Realities, 25% of the value of such shares was issued on February 17, 2023 (the one-year anniversary of Closing) and the remaining 25% of the value of such shares will be issued on February 17, 2024 (the two-year anniversary of the Closing). The shares issued on the Closing were valued at $6.00 per share. The shares issued on the one-year anniversary were valued at $2.22 based on the value of shares issuable divided by the trailing 10-day volume weighted average price ("VWAP") of the shares as of February 17, 2023 as reported on the Nasdaq Capital Market. The Company issued 62,475 shares to key members of Reflect's management team pursuant to the Retention Bonus Plan. Certain participants made an election to have stock withheld to cover applicable withholding taxes. In such cases, the Company reduced the stock award issued to the employee and settled the employees tax liability by remitting cash to the applicable taxing authorities. The shares to be issued on the two-year anniversary will be determined based on the value of shares issuable divided by the trailing 10-day VWAP of the shares as of February 17, 2024 as reported on the Nasdaq Capital Market.

Upon the resignation of a participant’s employment for “good reason,” or termination of the employment of a participant without “cause,” each as defined in the Retention Bonus Plan, the participant will be fully vested and will receive all cash and shares allocated to such participant under the Retention Bonus Plan. Any amounts unpaid by reason of a lapse in continuous employment or otherwise will be reallocated among the remaining Retention Bonus Plan participants.

Purchase price

The preliminary purchase price of Reflect consisted of the following items:

*(in thousands)*	*Consideration*
Cash consideration for Reflect stock	$	16,664	⁽¹⁾
Cash consideration for Retention Bonus Plan		1,334	⁽²⁾
Common stock issued to Reflect stockholders		4,667	⁽³⁾
Common stock issued to Retention Bonus Plan		333	⁽⁴⁾
Secured Promissory Note		2,500	⁽⁵⁾
Earnout liability		10,862	⁽⁶⁾
Total consideration		36,360
Vendor deposit with the Company		(818)	⁽⁷⁾
Cash acquired		(812)	⁽⁸⁾
Net consideration transferred	$	34,730

(1)	Cash consideration for outstanding shares of Reflect capital stock per Merger Agreement.

(2)	Cash consideration utilized to fund the Retention Bonus Plan per Merger Agreement.

(3)	Company common stock issued in exchange for outstanding shares of Reflect capital stock per Merger Agreement.

(4)	Company common stock issued to fund the Retention Bonus Plan per Merger Agreement.

(5)

The Secured Promissory Note accrued interest at 0.59% (the applicable federal rate at the time of issuance of the Secured Promissory Note) and required the Company and Reflect to collectively pay equal monthly principal installments of $104 on the fifteenth (15th) day of each month, commencing on March 15, 2022. On February 11, 2023, the Company and the Stockholders’ Representative executed an amendment (the “Note Amendment”) to the Secured Promissory Note. The Note Amendment eliminated the balloon payment, extending the maturity date for a one-year period, to February 17, 2024. During the extended period, the Company will continue to make monthly principal payments of $104, and the annual interest rate on the outstanding principal increased from 0.59% to 4.60%, which will accrue and is payable in full on the new maturity date.

(6)

Represents an estimate of the fair value of the Guaranteed Consideration as of the Merger, which, if any, is payable on or after February 17, 2025 (subject to the Extension Option), in an amount by which the value of the CREX Shares on such anniversary is less than $19.20 per share, multiplied by the amount of CREX Shares held by the Reflect stockholders on the Guarantee Date (subject to the Extension Option), subject to the terms of the Merger Agreement.

(7)	Prior to the Merger, Reflect had engaged the Company on a project and paid the Company a deposit of $818. These amounts reduced consideration paid by the Company in accordance with ASC 805.

(8)	Represents the Reflect cash balance acquired at Closing.

The Company incurred $391 of direct transaction costs related to the Reflect Merger for the three months ended March 31, 2022. These costs are included in deal and transaction expense in the accompanying Condensed Consolidated Statement of Operations.

The Company accounted for the Merger using the acquisition method of accounting. The final allocation of the purchase price is based on the fair value of assets acquired and liabilities assumed as of February 17, 2022, which included the following:

*(in thousands)*	*Total*
Accounts receivable	$	1,359
Inventory		190
Prepaid expenses & other current assets		666
Property and equipment		96
Operating right of use assets		555
Other assets		36
Identified intangible assets:
Definite-lived trade names		960
Definite-lived Developed technology		5,130
Definite-lived Customer relationships		11,040
Definite-lived Noncompete agreements		30
Goodwill		18,935
Accounts payable		(104	)
Accrued expenses		(483	)
Customer deposits		(1,661	)
Deferred revenues		(1,259	)
Current maturities of operating leases		(277	)
Long-term obligations under operating leases		(278	)
Other liabilities		(205	)
Net consideration transferred	$	34,730

The Company engaged a third-party valuation specialist to assist in the identification and calculation of the fair value of those separately identifiable intangible assets.

The Company completed its valuation procedures by asset utilizing the following approaches:

●

Customer relationship asset was estimated using the income approach through a discounted cash flow analysis wherein the cash flows will be based on estimates used to price the Merger. Discount rates were benchmarked with reference to the implied rate of return from the Company’s pricing model and the weighted average cost of capital.

●

Trade name asset represents the Reflect brand name as marketed primarily as a full services digital software solution, marketed in numerous verticals with the exception of food service. The Company applied the income approach through an excess earnings analysis to determine the fair value of the trade name asset. The Company applied the income approach through a relief-from-royalty analysis to determine the fair value of this asset.

●

The developed technology assets are primarily comprised of know-how and functionality embedded in Reflect’s proprietary content management applications, which drive currently marketed products and services. The Company applied the income approach through a relief-from-royalty analysis to determine the preliminary fair value of this asset.

The Company is amortizing the identifiable intangible assets on a straight-line basis over the weighted average lives ranging from 2 to 10 years as outlined in the table below.

The table below sets forth the valuation and amortization period of identifiable intangible assets:

*(in thousands)*	*Valuation*		*Amortization Period (in years)*
Identifiable definite-lived intangible assets:
Trade names	$	960		5
Developed technology		5,130		10
Noncompete		30		2
Customer relationships		11,040		10
Total	$	17,160

The Company estimated the preliminary fair value of the acquired property and equipment using a combination of the cost and market approaches, depending on the component. The fair value of such property and equipment is $96.

The excess of the purchase price over the fair value of the tangible net assets and identifiable intangible assets acquired was recorded as goodwill. The factors contributing to the recognition of the amount of goodwill are based on several strategic and synergistic benefits that are expected to be realized from the Merger. These benefits include a comprehensive portfolio of iconic customer brands, complementary product offerings, enhanced national footprint, and attractive synergy opportunities and value creation. None of the goodwill is expected to be deductible for income tax purposes.

Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2023

Accounting Policies [Abstract]

Basis of Accounting, Policy [Policy Text Block]

1. Basis of Presentation

The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with the applicable instructions to Form 10-Q and Article 10 of Regulation S-X and include all of the information and disclosures required by generally accepted accounting principles in the United States of America (“GAAP”) for interim financial reporting. These unaudited Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements of the Company and related footnotes for the year ended December 31, 2022, included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 30, 2023.

The results of operations for the interim periods are not necessarily indicative of results of operations for a full year. Management believes the accompanying unaudited Condensed Consolidated Financial Statements reflect all adjustments, including normal recurring items, considered necessary for a fair statement of results for the interim periods presented.

New Accounting Pronouncements, Policy [Policy Text Block]

2. Recently Issued and Adopted Accounting Pronouncements

Credit Losses. In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-13, Financial Instruments—Credit Losses, which requires entities to estimate expected lifetime credit losses on financial assets and provide expanded disclosures. The ASU replaced the incurred loss methodology with one that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. We adopted ASU No. 2016-13 on January 1, 2023. The adoption of this guidance did not have a material impact on the Company's Condensed Consolidated Financial Statements, as the Company's primary financial assets are its trade accounts receivable, which are short-term financings under industry standard credit and trade terms.

Debt. In August 2020, the FASB issued Accounting Standards Update No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (ASU 2020-06), which simplifies the accounting for convertible instruments by reducing the number of accounting models available for convertible debt instruments. This guidance also eliminates the treasury stock method to calculate diluted earnings per share for convertible instruments and requires the use of the if-converted method. This guidance will be effective for us in the first quarter of 2024 on a full or modified retrospective basis, with early adoption permitted. We do not intend to early adopt this standard, nor do we expect the adoption of this guidance to have a material impact on our Consolidated Financial Statements.

Revenue from Contract with Customer [Policy Text Block]

3. Revenue Recognition

We recognize revenue in accordance with ASC 606, Revenue from Contracts with Customers, applying the five-step model.

If an arrangement involves multiple performance obligations, the items are analyzed to determine the separate units of accounting, whether the items have value on a standalone basis and whether there is objective and reliable evidence of their standalone selling price. The total contract transaction price is allocated to the identified performance obligations based upon the relative standalone selling prices of the performance obligations. The standalone selling price is based on an observable price for services sold to other comparable customers, when available, or an estimated selling price using a cost plus margin approach.

The Company estimates the amount of total contract consideration it expects to receive for variable arrangements by determining the most likely amount it expects to earn from the arrangement based on the expected quantities of services it expects to provide and the contractual pricing based on those quantities. The Company only includes some or a portion of variable consideration in the transaction price when it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. The Company considers the sensitivity of the estimate, its relationship and experience with the client and variable services being performed, the range of possible revenue amounts and the magnitude of the variable consideration to the overall arrangement. The Company receives variable consideration in very few instances.

Revenue is recognized when a customer obtains control of promised goods or services under the terms of a contract and is measured as the amount of consideration the Company expects to receive in exchange for transferring goods or providing services. The Company does not have any material extended payment terms as payment is due at or shortly after the time of the sale, ranging between thirty and ninety days. Observable prices are used to determine the standalone selling price of separate performance obligations or a cost plus margin approach when one is not available. Sales, value-added and other taxes collected concurrently with revenue producing activities are excluded from revenue.

The Company recognizes contract assets or unbilled receivables related to revenue recognized for services completed but not yet invoiced to the clients. A contract liability is recognized as deferred revenue when the Company invoices clients in advance of performing the related services under the terms of a contract. Deferred revenue is recognized as revenue when the Company has satisfied the related performance obligation.

The Company uses the practical expedient for recording an immediate expense for incremental costs of obtaining contracts, including certain design/engineering services, commissions, incentives and payroll taxes, as these incremental and recoverable costs have terms that do not exceed one year.

Receivables, Trade and Other Accounts Receivable, Allowance for Doubtful Accounts, Policy [Policy Text Block]

4. Allowance for Credit Losses

The allowance for credit losses is the Company's best estimate of the amount of expected lifetime credit losses in the Company's accounts receivable. The Company regularly reviews the adequacy of its allowance for credit losses. The Company estimates losses over the contractual life using assumptions to capture the risk of loss, even if remote, based principally on how long a receivable has been outstanding. Account balances are charged off against the allowance for credit losses after all reasonable means of collection have been exhausted and the potential for recovery is considered remote. Other factors considered include historical write-off experience, current economic conditions, customer credit, and past transaction history with the customer. The allowance for credit losses is included in accounts receivable, net in the accompanying Condensed Consolidated Balance Sheets.

The Company had the following activity for its allowance for credit losses from December 31, 2022 to March 31, 2023:

Balance as of December 31, 2022	$	984
Amounts accrued		237
Write-offs charged against the allowance		(4	)
Balance as of March 31, 2023	$	1,217

Inventory, Policy [Policy Text Block]

5. Inventories

Inventories are stated at the lower of cost or net realizable value, determined by the first-in, first-out (FIFO) method, and consist of the following:

	*March 31,*		*December 31,*
	*2023*		*2022*
Raw materials, net of reserve	$	741	$	1,671
Work-in-process		738		596
Total inventories	$	1,479	$	2,267

The reserve for obsolete inventory at March 31, 2023 and December 31, 2022 was $1,777, of which $1,707 related to Safe Space Solutions. The Company is no longer actively promoting the sale of our Safe Space Solutions or purchasing inventory to support such solutions.

Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block]

6. Impairment of Long-Lived Assets

We review the carrying value of all long-lived assets, including property and equipment, for impairment annually as of September 30 in accordance with ASC 360, Accounting for the Impairment or Disposal of Long-Lived Assets. Under ASC 360, impairment losses are recorded whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable.

If the impairment tests indicate that the carrying value of the asset is greater than the expected undiscounted cash flows to be generated by such asset, an impairment loss would be recognized. The impairment loss is determined as the amount by which the carrying value of such asset exceeds its fair value. We generally measure fair value by considering sale prices for similar assets or by discounting estimated future cash flows from such assets using an appropriate discount rate. Assets to be disposed of are carried at the lower of their carrying value or fair value less costs to sell. Considerable management judgment is necessary to estimate the fair value of assets, and accordingly, actual results could vary significantly from such estimates.

Earnings Per Share, Policy [Policy Text Block]

7. Basic and Diluted (Loss)/Earnings per Common Share

Basic and diluted (loss)/earnings per common share for all periods presented is computed using the weighted average number of common shares outstanding. Basic weighted average shares outstanding includes only outstanding common shares. Diluted weighted average shares outstanding includes outstanding common shares and potential dilutive common shares outstanding in accordance with the treasury stock method.

Shares reserved for outstanding stock options, including stock options with performance restricted vesting, and warrants totaling approximately 7,339,582 and 6,910,962 at March 31, 2023 and 2022, respectively were excluded from the computation of (loss)/earnings per share as the strike price on the options and warrants were higher than the Company's market price and therefore anti-dilutive.

Income Tax, Policy [Policy Text Block]

8. Income Taxes

Deferred income taxes are recognized in the financial statements for the tax consequences in future years of differences between the tax basis of assets and liabilities and their financial reporting amounts based on enacted tax laws and statutory tax rates. Temporary differences arise from a number of matters including, but not limited to, net operating losses, differences in basis of intangibles, stock-based compensation, reserves for uncollectible accounts receivable and inventory, differences in depreciation methods, and accrued expenses. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. The Company accounts for uncertain tax positions utilizing an established recognition threshold and measurement attributes for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. We had no uncertain tax positions as of March 31, 2023 and December 31, 2022.

Goodwill and Intangible Assets, Policy [Policy Text Block]

9. Goodwill and Intangible Assets

We follow the provisions of ASC 350, Goodwill and Other Intangible Assets. Pursuant to ASC 350, goodwill acquired in a purchase business combination is not amortized, but instead tested for impairment at least annually. The Company uses an annual measurement date of September 30 to assess impairment of goodwill and indefinite-lived intangible assets, or as indicators are identified.

Definite-lived intangible assets are amortized straight-line in accordance with their identified useful lives.

Use of Estimates, Policy [Policy Text Block]

10. Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Our significant estimates include: contingent purchase consideration valuation, allowance for credit losses, valuation allowances related to deferred taxes, the fair value of acquired assets and liabilities, the fair value of liabilities reliant upon the appraised fair value of the Company, valuation of stock-based compensation awards and other assumptions and estimates used to evaluate the recoverability of long-lived assets, goodwill and other intangible assets and the related amortization methods and periods. Actual results could differ from those estimates.

Business Combinations Policy [Policy Text Block]

11. Business Combinations

Accounting for acquisitions requires us to recognize separately from goodwill the assets acquired and the liabilities assumed at their acquisition date fair values. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the net acquisition date fair values of the assets acquired and the liabilities assumed. While we use our best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date as well as contingent consideration, where applicable, our estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, we may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to our consolidated statements of operations.

12. Contingent Consideration

The Company has contingent consideration arrangements related to certain acquisitions to potentially pay additional cash amounts in future periods based on the lack of achievement of certain share price performance goals of our common stock. Such contingent consideration arrangements are recorded at fair value and are classified as liabilities on the acquisition date and are remeasured at each reporting period in accordance with ASC 805-30-35-1 using a Monte Carlo simulation model.

Note 7 - Intangible Assets Including Goodwill

3 Months Ended

Mar. 31, 2023

Notes to Financial Statements

Goodwill and Intangible Assets Disclosure [Text Block]

NOTE 7: INTANGIBLE ASSETS, INCLUDING GOODWILL

Intangible Assets

Intangible assets consisted of the following at March 31, 2023 and December 31, 2022:

	*March 31,*				*December 31,*
	*2023*				*2022*
	*Gross*				*Gross*
	*Carrying*		*Accumulated*		*Carrying*		*Accumulated*
	*Amount*		*Amortization*		*Amount*		*Amortization*
Technology platform	$	9,765	$	4,546	$	9,765	$	4,354
Purchased and developed software		5,044		3,561		4,682		3,375
In-Process internally developed software platform		4,533		-		4,074		-
Customer relationships		15,000		3,173		15,000		2,849
Trademarks and trade names		1,600		856		1,600		808
Non-compete		30		17		30		13
		35,972		12,153		35,151		11,399
Accumulated amortization		12,153				11,399
Net book value of amortizable intangible assets	$	23,819			$	23,752

For the three months ended March 31, 2023 and 2022, amortization of intangible assets charged to operations was $754 and $680, respectively.

Goodwill

Goodwill represents the excess of the purchase price over the fair value of net assets acquired. Goodwill is subject to an impairment review at a reporting unit level, on an annual basis at September 30th each fiscal year, when an event occurs, or circumstances change that would indicate potential impairment. The Company has only one reporting unit, and therefore the entire goodwill is allocated to that reporting unit.

The Company assessed the carrying value of goodwill at the reporting unit level based on an estimate of the fair value of its reporting unit. Fair value of the reporting unit was estimated using both (1) a market approach, leveraging recent industry merger and acquisition activity as well as comparable public company information, and (2) a discounted cash flow analyses consisting of various assumptions, including expectations of future cash flows based on projections or forecasts derived from analysis of business prospects and economic or market trends that may occur, specifically, the Company gave significant consideration to actual historic financial results, including revenue growth rates in the current and preceding three years, further informed by known backlog and customer acquisitions. Based on the Company’s assessment, we determined that the fair value of our reporting unit exceeds its carrying value, and accordingly, the goodwill associated with the reporting unit is not considered to be impaired at September 30, 2022.

At December 31, 2022, we concluded the decline in our market value represented an interim indicator of potential impairment. Based on a quantitative assessment of our fair value performed at December 31, 2022, using the same approach as our annual impairment performed at September 30, described above, we concluded that the carrying value of our goodwill did not exceed the reporting unit fair value. No indicators of impairment were identified as of March 31, 2023. The Company recognizes that any differences between our actual and projected future results, or changes in our projected future results, could potentially have a material impact on our assessment of goodwill impairment. The Company will continue to monitor the actual performance of its operations against expectations and assess further indicators of possible impairment. The valuation of goodwill and intangible assets is subject to a high degree of judgment, uncertainty and complexity. Should any indicators of impairment occur in subsequent periods, the Company will be required to perform an analysis in order to determine whether goodwill is impaired.

Note 4 - Revenue Recognition (Details Textual)	3 Months Ended
Note 4 - Revenue Recognition (Details Textual)	Mar. 31, 2023
Software Licensing and Delivery [Member] \| Minimum [Member]
Revenue Recognition, Contract Term (Month)	12 months
Software Licensing and Delivery [Member] \| Maximum [Member]
Revenue Recognition, Contract Term (Month)	36 months
Support Service [Member] \| Minimum [Member]
Revenue Recognition, Contract Term (Month)	12 months
Support Service [Member] \| Maximum [Member]
Revenue Recognition, Contract Term (Month)	36 months
Media [Member] \| Minimum [Member]
Revenue Recognition, Contract Term (Month)	28 days
Media [Member] \| Maximum [Member]
Revenue Recognition, Contract Term (Month)	3 years

Note 2 - Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2023

Notes to Financial Statements

Significant Accounting Policies [Text Block]

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A summary of the significant accounting policies consistently applied in the preparation of the accompanying Condensed Consolidated Financial Statements follows:

1. Basis of Presentation

The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with the applicable instructions to Form 10-Q and Article 10 of Regulation S-X and include all of the information and disclosures required by generally accepted accounting principles in the United States of America (“GAAP”) for interim financial reporting. These unaudited Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements of the Company and related footnotes for the year ended December 31, 2022, included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 30, 2023.

The results of operations for the interim periods are not necessarily indicative of results of operations for a full year. Management believes the accompanying unaudited Condensed Consolidated Financial Statements reflect all adjustments, including normal recurring items, considered necessary for a fair statement of results for the interim periods presented.

2. Recently Issued and Adopted Accounting Pronouncements

Credit Losses. In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-13, Financial Instruments—Credit Losses, which requires entities to estimate expected lifetime credit losses on financial assets and provide expanded disclosures. The ASU replaced the incurred loss methodology with one that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. We adopted ASU No. 2016-13 on January 1, 2023. The adoption of this guidance did not have a material impact on the Company's Condensed Consolidated Financial Statements, as the Company's primary financial assets are its trade accounts receivable, which are short-term financings under industry standard credit and trade terms.

Debt. In August 2020, the FASB issued Accounting Standards Update No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (ASU 2020-06), which simplifies the accounting for convertible instruments by reducing the number of accounting models available for convertible debt instruments. This guidance also eliminates the treasury stock method to calculate diluted earnings per share for convertible instruments and requires the use of the if-converted method. This guidance will be effective for us in the first quarter of 2024 on a full or modified retrospective basis, with early adoption permitted. We do not intend to early adopt this standard, nor do we expect the adoption of this guidance to have a material impact on our Consolidated Financial Statements.

3. Revenue Recognition

We recognize revenue in accordance with ASC 606, Revenue from Contracts with Customers, applying the five-step model.

If an arrangement involves multiple performance obligations, the items are analyzed to determine the separate units of accounting, whether the items have value on a standalone basis and whether there is objective and reliable evidence of their standalone selling price. The total contract transaction price is allocated to the identified performance obligations based upon the relative standalone selling prices of the performance obligations. The standalone selling price is based on an observable price for services sold to other comparable customers, when available, or an estimated selling price using a cost plus margin approach.

The Company estimates the amount of total contract consideration it expects to receive for variable arrangements by determining the most likely amount it expects to earn from the arrangement based on the expected quantities of services it expects to provide and the contractual pricing based on those quantities. The Company only includes some or a portion of variable consideration in the transaction price when it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. The Company considers the sensitivity of the estimate, its relationship and experience with the client and variable services being performed, the range of possible revenue amounts and the magnitude of the variable consideration to the overall arrangement. The Company receives variable consideration in very few instances.

Revenue is recognized when a customer obtains control of promised goods or services under the terms of a contract and is measured as the amount of consideration the Company expects to receive in exchange for transferring goods or providing services. The Company does not have any material extended payment terms as payment is due at or shortly after the time of the sale, ranging between thirty and ninety days. Observable prices are used to determine the standalone selling price of separate performance obligations or a cost plus margin approach when one is not available. Sales, value-added and other taxes collected concurrently with revenue producing activities are excluded from revenue.

The Company recognizes contract assets or unbilled receivables related to revenue recognized for services completed but not yet invoiced to the clients. A contract liability is recognized as deferred revenue when the Company invoices clients in advance of performing the related services under the terms of a contract. Deferred revenue is recognized as revenue when the Company has satisfied the related performance obligation.

The Company uses the practical expedient for recording an immediate expense for incremental costs of obtaining contracts, including certain design/engineering services, commissions, incentives and payroll taxes, as these incremental and recoverable costs have terms that do not exceed one year.

4. Allowance for Credit Losses

The allowance for credit losses is the Company's best estimate of the amount of expected lifetime credit losses in the Company's accounts receivable. The Company regularly reviews the adequacy of its allowance for credit losses. The Company estimates losses over the contractual life using assumptions to capture the risk of loss, even if remote, based principally on how long a receivable has been outstanding. Account balances are charged off against the allowance for credit losses after all reasonable means of collection have been exhausted and the potential for recovery is considered remote. Other factors considered include historical write-off experience, current economic conditions, customer credit, and past transaction history with the customer. The allowance for credit losses is included in accounts receivable, net in the accompanying Condensed Consolidated Balance Sheets.

The Company had the following activity for its allowance for credit losses from December 31, 2022 to March 31, 2023:

Balance as of December 31, 2022
$ 984

Amounts accrued
237

Write-offs charged against the allowance
(4 )

Balance as of March 31, 2023
$ 1,217

5. Inventories

Inventories are stated at the lower of cost or net realizable value, determined by the first-in, first-out (FIFO) method, and consist of the following:

March 31,

December 31,

2023

2022

Raw materials, net of reserve
$ 741 $ 1,671

Work-in-process
738 596

Total inventories
$ 1,479 $ 2,267

The reserve for obsolete inventory at March 31, 2023 and December 31, 2022 was $1,777, of which $1,707 related to Safe Space Solutions. The Company is no longer actively promoting the sale of our Safe Space Solutions or purchasing inventory to support such solutions.

6. Impairment of Long-Lived Assets

We review the carrying value of all long-lived assets, including property and equipment, for impairment annually as of September 30 in accordance with ASC 360, Accounting for the Impairment or Disposal of Long-Lived Assets. Under ASC 360, impairment losses are recorded whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable.

If the impairment tests indicate that the carrying value of the asset is greater than the expected undiscounted cash flows to be generated by such asset, an impairment loss would be recognized. The impairment loss is determined as the amount by which the carrying value of such asset exceeds its fair value. We generally measure fair value by considering sale prices for similar assets or by discounting estimated future cash flows from such assets using an appropriate discount rate. Assets to be disposed of are carried at the lower of their carrying value or fair value less costs to sell. Considerable management judgment is necessary to estimate the fair value of assets, and accordingly, actual results could vary significantly from such estimates.

7. Basic and Diluted (Loss)/Earnings per Common Share

Basic and diluted (loss)/earnings per common share for all periods presented is computed using the weighted average number of common shares outstanding. Basic weighted average shares outstanding includes only outstanding common shares. Diluted weighted average shares outstanding includes outstanding common shares and potential dilutive common shares outstanding in accordance with the treasury stock method.

Shares reserved for outstanding stock options, including stock options with performance restricted vesting, and warrants totaling approximately 7,339,582 and 6,910,962 at March 31, 2023 and 2022, respectively were excluded from the computation of (loss)/earnings per share as the strike price on the options and warrants were higher than the Company's market price and therefore anti-dilutive.

8. Income Taxes

Deferred income taxes are recognized in the financial statements for the tax consequences in future years of differences between the tax basis of assets and liabilities and their financial reporting amounts based on enacted tax laws and statutory tax rates. Temporary differences arise from a number of matters including, but not limited to, net operating losses, differences in basis of intangibles, stock-based compensation, reserves for uncollectible accounts receivable and inventory, differences in depreciation methods, and accrued expenses. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. The Company accounts for uncertain tax positions utilizing an established recognition threshold and measurement attributes for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. We had no uncertain tax positions as of March 31, 2023 and December 31, 2022.

9. Goodwill and Intangible Assets

We follow the provisions of ASC 350, Goodwill and Other Intangible Assets. Pursuant to ASC 350, goodwill acquired in a purchase business combination is not amortized, but instead tested for impairment at least annually. The Company uses an annual measurement date of September 30 to assess impairment of goodwill and indefinite-lived intangible assets, or as indicators are identified.

Definite-lived intangible assets are amortized straight-line in accordance with their identified useful lives.

10. Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Our significant estimates include: contingent purchase consideration valuation, allowance for credit losses, valuation allowances related to deferred taxes, the fair value of acquired assets and liabilities, the fair value of liabilities reliant upon the appraised fair value of the Company, valuation of stock-based compensation awards and other assumptions and estimates used to evaluate the recoverability of long-lived assets, goodwill and other intangible assets and the related amortization methods and periods. Actual results could differ from those estimates.

11. Business Combinations

Accounting for acquisitions requires us to recognize separately from goodwill the assets acquired and the liabilities assumed at their acquisition date fair values. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the net acquisition date fair values of the assets acquired and the liabilities assumed. While we use our best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date as well as contingent consideration, where applicable, our estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, we may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to our consolidated statements of operations.

12. Contingent Consideration

The Company has contingent consideration arrangements related to certain acquisitions to potentially pay additional cash amounts in future periods based on the lack of achievement of certain share price performance goals of our common stock. Such contingent consideration arrangements are recorded at fair value and are classified as liabilities on the acquisition date and are remeasured at each reporting period in accordance with ASC 805-30-35-1 using a Monte Carlo simulation model.

Note 2 - Summary of Significant Accounting Policies - Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Raw materials, net of reserve	$ 741	$ 1,671
Work-in-process	738	596
Total inventories	$ 1,479	$ 2,267

Note 2 - Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2023

Notes Tables

Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

Balance as of December 31, 2022	$	984
Amounts accrued		237
Write-offs charged against the allowance		(4	)
Balance as of March 31, 2023	$	1,217

Schedule of Inventory, Current [Table Text Block]

	*March 31,*		*December 31,*
	*2023*		*2022*
Raw materials, net of reserve	$	741	$	1,671
Work-in-process		738		596
Total inventories	$	1,479	$	2,267

Note 3 - Recently Issued Accounting Pronouncements

3 Months Ended

Mar. 31, 2023

Notes to Financial Statements

Accounting Standards Update and Change in Accounting Principle [Text Block]

NOTE 3: FAIR VALUE MEASUREMENT

We measure certain financial assets, including cash equivalents, at fair value on a recurring basis. In accordance with ASC 820-10-30, fair value is a market-based measurement that should be determined based on the assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, ASC 820-10-35 establishes a three-level hierarchy that prioritizes the inputs used in measuring fair value. The three hierarchy levels are defined as follows:

Level 1 — Valuations based on unadjusted quoted prices in active markets for identical assets.

Level 2 — Valuations based on observable inputs (other than Level 1 prices), such as quoted prices for similar assets at the measurement date; quoted prices in markets that are not active; or other inputs that are observable, either directly or indirectly.

Level 3 — Valuations based on inputs that are unobservable and involve management judgment and the reporting entity’s own assumptions about market participants and pricing.

The calculation of the fair value of the contingent consideration contains inputs which are unobservable and involve management judgment and are considered Level 3 estimates. Additionally, the separately identifiable intangible assets rely on a discounted cash flow model which utilizes inputs including the calculation of the weighted average cost of capital and management’s forecast of future financial performance which are unobservable and involve management judgment and are considered Level 3 estimates.

The calculation of the weighted average cost of capital and management’s forecast of future financial performance utilized within our discounted cash flow model for the impairment of goodwill contains inputs which are unobservable and involve management judgment and are considered Level 3 estimates.

The calculation of the fair value of the warrant liability contains valuation inputs which are based on observable inputs (other than Level 1 prices) and are considered Level 2 estimates. The liability warrants were converted to equity warrants effective June 30, 2022.

- Definition

The entire disclosure for change in accounting principle. Includes, but is not limited to, nature, reason, and method of adopting amendment to accounting standards or other change in accounting principle.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 944
-SubTopic 40
-Name Accounting Standards Codification
-Section 65
-Paragraph 2
-Subparagraph (g)(2)(i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480016/944-40-65-2

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 944
-SubTopic 40
-Name Accounting Standards Codification
-Section 65
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+ Details

Note 13 - Significant Customers/Vendors (Details Textual)	3 Months Ended			12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2022
Customer Concentration Risk [Member] \| Accounts Receivable [Member]
Number of Major Customers	2			3
Customer Concentration Risk [Member] \| Accounts Receivable [Member] \| Two Customers [Member]
Concentration Risk, Percentage	39.70%
Customer Concentration Risk [Member] \| Accounts Receivable [Member] \| Three Customers [Member]
Concentration Risk, Percentage				49.20%
Customer Concentration Risk [Member] \| Revenue Benchmark [Member]
Number of Major Customers	2
Number of Major Vendors			3
Customer Concentration Risk [Member] \| Revenue Benchmark [Member] \| Two Customers [Member]
Concentration Risk, Percentage	44.50%
Customer Concentration Risk [Member] \| Revenue Benchmark [Member] \| Three Customers [Member]
Concentration Risk, Percentage			70.00%
Supplier Concentration Risk [Member] \| Accounts Payable [Member]
Number of Major Vendors	2	1
Supplier Concentration Risk [Member] \| Accounts Payable [Member] \| Two Vendors [Member]
Concentration Risk, Percentage	45.60%
Supplier Concentration Risk [Member] \| Accounts Payable [Member] \| One Vendor [Member]
Concentration Risk, Percentage		30.10%

Note 11 - Warrants - Summary of Outstanding Warrants (Details) - Warrants Classified as Liability [Member] - $ / shares	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Balance, warrants (in shares)	5,824,027
Balance, warrants, weighted average exercise price (in dollars per share)	$ 6.56
Balance, warrants, weighted average remaining contractual life (Year)	3 years 11 months 19 days	4 years 2 months 15 days
Warrants expired, warrants (in shares)	(20,577)
Warrants expired, warrants, weighted average exercise price (in dollars per share)	$ 10.26
Balance, warrants (in shares)	5,803,450	5,824,027
Balance, warrants, weighted average exercise price (in dollars per share)	$ 6.54	$ 6.56

Note 12 - Stock-based Compensation

3 Months Ended

Mar. 31, 2023

Notes to Financial Statements

Share-Based Payment Arrangement [Text Block]

NOTE 12: STOCK-BASED COMPENSATION

A summary of outstanding options is included below:

Time Vesting Options			Weighted
			Average		Weighted				Weighted
			Remaining		Average				Average
Range of Exercise	Number		Contractual		Exercise		Options		Exercise
Prices between	Outstanding		Life		Price		Exercisable		Price
$4.01 - $8.00		566,673		7.39	$	7.42		380,560	$	7.40
$8.01+		96,125		2.78		25.22		96,125	$	25.22
		662,798		6.72	$	10.00		476,685

Performance Vesting Options

Weighted

Average

Weighted

Remaining

Average

Range of Exercise

Number

Contractual

Exercise

Options

Exercise

Prices between

Outstanding

Life

Price

Exercisable

Price

$4.01 - $8.00

240,000

7.18

7.59

240,000

7.59

240,000

7.18

7.59

240,000

Market Vesting Options

Weighted

Average

Weighted

Remaining

Average

Range of Exercise

Number

Contractual

Exercise

Options

Exercise

Prices between

Outstanding

Life

Price

Exercisable

Price

$0.01 - $4.00

633,334

1.89

3.00

633,334

1.89

3.00

										*Performance Vesting*
	*Market Vesting Options*				*Time Vesting Options*					*Options*
			*Weighted*					*Weighted*				*Weighted*
			*Average*					*Average*				*Average*
	*Options*		*Exercise*		*Options*			*Exercise*		*Options*		*Exercise*
Date/Activity	*Outstanding*		*Price*		*Outstanding*			*Price*		*Outstanding*		*Price*
Balance, December 31, 2022		633,334		3.00		662,910		$	10.02		240,000	$	7.59
Forfeited or expired		-		-		(112	)		162.00		-		-
Balance, March 31, 2023		633,334		3.00		662,798			10.00		240,000	$	7.59

The weighted average remaining contractual life for options exercisable is 6.7 years as of March 31, 2023.

Valuation Information for Stock-Based Compensation

For purposes of determining estimated fair value under FASB ASC 718-10, Stock Compensation, the Company computed the estimated fair values of stock options using the Black-Scholes model.

Amendment to Performance Options

On June 1, 2020, Rick Mills, CEO, and Will Logan, CFO, were issued ten-year options to purchase 160,000 and 80,000 shares of common stock (the “Performance Options”), respectively, which vest in equal installments over a three-year period (2020-2022), subject to satisfying the Company revenue targets and EBITDA (earnings before interest, taxes, depreciation and amortization) targets for the applicable year. In each of calendar years 2020, 2021 and 2022, one-third of the total shares may vest (if the revenue and EBITDA targets are met), and the shares that are subject to vesting each year are allocated equally to each of the revenue and EBITDA targets for such year. The Performance Options include a catch-up provision, where any options that did not vest during a prior year due to the Company’s failure to meet a prior revenue or EBITDA target may vest in a subsequent vesting year if the revenue or EBITDA target, as applicable, is met in the future year.

On June 15, 2022, the Board approved of an amendment to the Performance Options to provide that the revenue target for the calendar year 2022 set forth therein ($38,000) was eliminated, and the remaining shares that are available for vesting under the Performance Options (106,667 unvested shares for Mr. Mills and 53,334 for Mr. Logan) (including the unvested portions of shares based on the satisfaction of the revenue targets for 2020 and 2021 by virtue of the catch-up provisions in the Performance Options) will fully vest upon the achievement of an updated EBITDA target for calendar year 2022 of $3,600.

The Performance Options state that the calculation of EBITDA set forth in the Performance Options shall be calculated in a form consistent with the Company’s 2022 approved budget, which

(i)

excludes any impact on EBITDA of:

(a) the accounting treatment (including any “mark-to-market accounting”) of the Company’s warrants or the Guaranteed Consideration (as defined in the Merger Agreement),

(b) non-recurring transaction expenses associated with the Merger and the capital raising financing activities of the Company to effectuate the Merger, and

(ii) includes deductions related to any cash or stock bonuses paid or payable to any employees of the Company for services provided in calendar year 2022 (even if such bonuses are actually paid after calendar year 2022), including bonuses paid pursuant to the terms of the 2022 Cash Bonus Plan (as described below) (collectively, the “EBITDA Calculations”).

The unvested portion of the Performance Options as of December 31, 2022 vested in full effective March 30, 2023 upon confirmation by the Board of Directors of achievement of the performance metrics for the year ended December 31, 2022.

The exercise price of the foregoing options is $7.59 per share, the closing price of the Company’s common stock on the date of issuance (as adjusted by the Company's 1-for-3 reverse stock split in March 2023). The options were issued from the 2014 Stock Incentive Plan.

Issuance of New Options

On June 15, 2022, Messrs. Mills and Logan received ten-year options to purchase 333,334 and 200,000 shares of common stock, respectively (the “New Options”). The New Options are eligible to vest at any time on or prior to February 17, 2025 if the trailing 10-trading day VWAP of the Company’s common stock, as reported on the Nasdaq Capital Market, exceeds the share price targets below, subject to such executive serving the Company as a director, officer, employee or consultant at such time:

	*Share Price Target*
												*Guaranteed*			*Total*
Executive		*$6.00*		*$9.00*		*$12.00*		*$15.00*		*$18.00*		*Price*			*Shares*
Mills Shares Vested		16,667		33,334		50,000		66,667		83,333			83,333			333,334
Logan Shares Vested		10,000		20,000		30,000		40,000		50,000			50,000			200,000

Percentage of Shares Vested		5	%	10	%	15	%	20	%	25	%		25	%

The “Guaranteed Price” has the meaning ascribed to such term in the Merger Agreement, which currently means $19.20 per share.

The exercise price of the New Options is $3.00 per share, which exceeded the closing price of the Company’s common stock on the date of issuance (as adjusted by the Company's 1-for-3 reverse stock split in March 2023). The New Options are issued from the Company’s 2014 Stock Incentive Plan, as amended. An additional 100,000 options with identical market vesting restrictions were issued to non-executives.

The fair value of the options on the grant date varied between $0.63 and $1.11 per award as determined using the Monte Carlo model. These values were calculated using the following weighted average assumptions:

Risk-free interest rate	3.30	%
Expected term (in years)	2.68
Expected price volatility	123.53	%
Dividend yield	0	%

At March 31, 2023, the Company evaluated the probability of achieving the share price targets in each tranche based, in part, on work performed by the Company’s third party valuation specialist in conjunction with evaluating the equity guarantee contingent liability. As a result of that evaluation of probability, during the three month period ending March 31, 2023 the Company recorded $3 of compensation expense. These awards have not yet vested and are subject to actual share price performance through February 2025.

Stock Compensation Expense Information

ASC 718-10, Stock Compensation, requires measurement and recognition of compensation expense for all stock-based payments including warrants, stock options, restricted stock grants and stock bonuses based on estimated fair values. Under the Amended and Restated 2006 Equity Incentive Plan, the Company reserved 573,334 shares for purchase by the Company’s employees and under the Amended and Restated 2006 Non-Employee Director Stock Option Plan the Company reserved 233,334 shares for purchase by the Company’s employees. There are 3,890 options outstanding under the 2006 Equity Incentive Plan.

In October 2014, the Company’s shareholders approved the 2014 Stock Incentive Plan, under which 7,390,355 shares were reserved for purchase by the Company’s employees. In August 2018, a special meeting of shareholders was held in which the shareholders voted to amend the Company’s 2014 Stock Incentive Plan to increase the reserve of shares authorized for issuance thereunder, from 7,390,355 shares to 18,000,000 shares. Following a 1-for-30 reverse stock split, the shares authorized for issuance under the Company’s 2014 Stock Incentive Plan was reduced to 600,000. On July 10, 2020, the Company’s shareholders approved an amendment to the Company’s 2014 Stock Incentive Plan to increase the reserve of authorized for issuance thereunder to 6,000,000. Following a 1-for-3 reverse stock split, the shares authorized for issuance under the Company's 2014 Stock Incentive Plan was reduced to 2,000,000. There are 1,532,242 options outstanding under the 2014 Stock Incentive Plan.

Employee Awards

Compensation expense recognized for the issuance of stock options to employees for the three months ended March 31, 2023 and 2022 of $225 and $646, respectively, was included in general and administrative expense in the Condensed Consolidated Financial Statements.

At March 31, 2023, there was approximately $148 and $471 of total unrecognized compensation expense related to unvested share-based awards with time vesting and performance vesting criteria for employees, respectively. Generally, expense related to the time vesting options will be recognized over the next year and will be adjusted for any future forfeitures as they occur. Compensation expense related to performance vesting options will be recognized if it becomes probable that the Company will achieve the identified performance metrics.

Non-Employee Awards

Compensation expense recognized for the issuance of stock options, including those options awarded to our Board of Directors, for the three month period ended March 31, 2023 and 2022 of $43 and $82, respectively, was included in general and administrative expense in the Condensed Consolidated Financial Statements. At March 31, 2023, there was approximately $107 of total unrecognized compensation expense related to unvested share-based awards with time vesting criteria for non-employee directors. Generally, expense related to the time vesting options will be recognized over the next year and will be adjusted for any future forfeitures as they occur.

The Company engages certain consultants to perform services in exchange for Company common stock. Shares issued for services were calculated based on the ten (10) day VWAP for the last ten (10) days during the month of service provided.

During the three months ended March 31, 2023 and 2022, the Company issued or accrued shares issuable in exchange for services in the amount of $30 and 45, respectively.

Note 5 - Business Combination - Preliminary Purchase Price (Details) - Reflect Systems, Inc. [Member] - USD ($)
$ in Thousands

3 Months Ended

Nov. 12, 2021

Feb. 17, 2022

Cash consideration for Reflect stock

$ 16,166

$ 16,664

^[1]

Common stock issued to Reflect stockholders

^[2]

4,667

Total consideration

36,360

Vendor deposit with the Company

$ 818

818

^[3]

Cash acquired

^[4]

812

Net consideration transferred

34,730

Earnout Liability [Member]

Liability

^[5]

10,862

Secured Promissory Note [Member]

Liability

^[6]

2,500

Retention Bonus Plan [Member]

Cash consideration for Retention Bonus Plan

^[7]

1,334

Common stock issued to Retention Bonus Plan

^[8]

$ 333

[1]	Cash consideration for outstanding shares of Reflect capital stock per Merger Agreement.
[2]	Company common stock issued in exchange for outstanding shares of Reflect capital stock per Merger Agreement
[3]	Prior to the Merger, Reflect had engaged the Company on a project and paid the Company a deposit of $818. These amounts reduced consideration paid by the Company in accordance with ASC 805.
[4]	Represents the Reflect cash balance acquired at Closing.
[5]	Represents an estimate of the fair value of the Guaranteed Consideration as of the Merger, which, if any, is payable on or after February 17, 2025 (subject to the Extension Option), in an amount by which the value of the CREX Shares on such anniversary is less than $19.20 per share, multiplied by the amount of CREX Shares held by the Reflect stockholders on the Guarantee Date (subject to the Extension Option), subject to the terms of the Merger Agreement.
[6]	The Secured Promissory Note accrued interest at 0.59% (the applicable federal rate at the time of issuance of the Secured Promissory Note) and required the Company and Reflect to collectively pay equal monthly principal installments of $104 on the fifteenth (15th) day of each month, commencing on March 15, 2022. On February 11, 2023, the Company and the Stockholders’ Representative executed an amendment (the “Note Amendment”) to the Secured Promissory Note. The Note Amendment eliminated the balloon payment, extending the maturity date for a one-year period, to February 17, 2024. During the extended period, the Company will continue to make monthly principal payments of $104, and the annual interest rate onthe outstanding principal increased from 0.59% to 4.60%, which will accrue and is payable in full on the new maturity date.
[7]	Cash consideration utilized to fund the Retention Bonus Plan per Merger Agreement.
[8]	Company common stock issued to fund the Retention Bonus Plan per Merger Agreement

Note 7 - Intangible Assets Including Goodwill (Tables)

3 Months Ended

Mar. 31, 2023

Notes Tables

Schedule of Finite-Lived Intangible Assets [Table Text Block]

	*March 31,*				*December 31,*
	*2023*				*2022*
	*Gross*				*Gross*
	*Carrying*		*Accumulated*		*Carrying*		*Accumulated*
	*Amount*		*Amortization*		*Amount*		*Amortization*
Technology platform	$	9,765	$	4,546	$	9,765	$	4,354
Purchased and developed software		5,044		3,561		4,682		3,375
In-Process internally developed software platform		4,533		-		4,074		-
Customer relationships		15,000		3,173		15,000		2,849
Trademarks and trade names		1,600		856		1,600		808
Non-compete		30		17		30		13
		35,972		12,153		35,151		11,399
Accumulated amortization		12,153				11,399
Net book value of amortizable intangible assets	$	23,819			$	23,752

Note 8 - Loans Payable - Outstanding Debt (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Total debt, gross	$ 20,081	$ 20,641
Warrants (in shares)	1,731,499	1,731,499
Debt discount	$ (2,713)	$ (3,069)
Total debt, net	17,368	17,572
Less current maturities	(4,944)	(4,499)
Long term debt	$ 12,424	$ 13,073
Acquisition Term Loan [Member]
Issuance Date	Feb. 17, 2022	Jan. 17, 2022
Total debt, gross	$ 10,000	$ 10,000
Maturity Date	Feb. 15, 2025	Feb. 15, 2025
Warrants (in shares)	833,334	833,334
Maturity Date	Feb. 15, 2025	Feb. 15, 2025
Seller Note [Member]
Issuance Date	Feb. 17, 2022	Jan. 17, 2022
Total debt, gross	$ 1,146	$ 1,456
Maturity Date	Feb. 17, 2024	Feb. 17, 2024
Warrants (in shares)	0	0
Maturity Date	Feb. 17, 2024	Feb. 17, 2024
Consolidation Term Loan [Member]
Issuance Date	Feb. 17, 2022	Jan. 17, 2022
Total debt, gross	$ 7,185	$ 7,185
Maturity Date	Feb. 15, 2025	Feb. 15, 2025
Warrants (in shares)	898,165	898,165
Interest Rate			10.00%
Maturity Date	Feb. 15, 2025	Feb. 15, 2025
Interest Rate			10.00%
Term Loan with Related Party [Member]
Issuance Date	Oct. 31, 2022	Oct. 31, 2022
Total debt, gross	$ 1,750	$ 2,000
Maturity Date	Sep. 01, 2023	Sep. 01, 2023
Warrants (in shares)	0	0
Maturity Date	Sep. 01, 2023	Sep. 01, 2023