Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 29, 2019 | Jun. 29, 2018 | |
Document Information [Line Items] | |||
Entity Registrant Name | BIO KEY INTERNATIONAL INC | ||
Entity Central Index Key | 0001019034 | ||
Trading Symbol | bkyi | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | true | ||
Entity Common Stock, Shares Outstanding (in shares) | 13,991,688 | ||
Entity Public Float | $ 25.2 | ||
Entity Shell Company | false | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and cash equivalents | $ 323,943 | $ 288,721 |
Accounts receivable, net | 1,574,032 | 2,875,946 |
Due from factor | 56,682 | 109,865 |
Inventory | 998,829 | 946,847 |
Resalable software license rights | 1,125,000 | 2,640,000 |
Prepaid expenses and other | 150,811 | 152,654 |
Total current assets | 4,229,297 | 7,014,033 |
Resalable software license rights, net of current portion | 6,790,610 | 7,933,808 |
Accounts receivable, net of current portion | 760,000 | |
Equipment and leasehold improvements, net | 148,608 | 181,165 |
Capitalized contract costs, net | 319,199 | |
Deposits and other assets | 8,712 | 8,712 |
Intangible assets, net | 195,906 | 181,104 |
Total non-current assets | 7,463,035 | 9,064,789 |
TOTAL ASSETS | 11,692,332 | 16,078,822 |
LIABILITIES | ||
Accounts payable | 481,269 | 499,230 |
Accrued liabilities | 548,232 | 688,023 |
Dividends payable on preferred stock | 630,408 | |
Deferred revenue | 196,609 | 507,866 |
Total current liabilities | 1,226,110 | 2,325,527 |
TOTAL LIABILITIES | 1,226,110 | 2,325,527 |
Commitments and Contingencies | ||
STOCKHOLDERS’ EQUITY | ||
Common stock — authorized, 170,000,000 shares; issued and outstanding; 13,977,868 and 7,691,324 of $.0001 par value at December 31, 2018 and December 31, 2017, respectively | 1,398 | 769 |
Additional paid-in capital | 85,599,140 | 80,829,001 |
Accumulated deficit | (75,134,316) | (67,076,492) |
TOTAL STOCKHOLDERS’ EQUITY | 10,466,222 | 13,753,295 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | 11,692,332 | 16,078,822 |
Series A-1 Convertible Preferred Stock [Member] | ||
STOCKHOLDERS’ EQUITY | ||
Preferred stock | 6 | |
Series B-1 Convertible Preferred Stock [Member] | ||
STOCKHOLDERS’ EQUITY | ||
Preferred stock | $ 11 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Preferred stock, shares authorized (in shares) | 5,000,000 | |
Preferred stock, par value (in dollars per share) | $ 0.0001 | |
Common stock, shares authorized (in shares) | 170,000,000 | 170,000,000 |
Common stock, shares issued (in shares) | 13,972,158 | 7,691,324 |
Common stock, shares outstanding (in shares) | 13,972,158 | 7,691,324 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Series A-1 Convertible Preferred Stock [Member] | ||
Preferred stock, shares authorized (in shares) | 100,000 | 100,000 |
Preferred stock, liquidation value | $ 100 | $ 100 |
Preferred stock, shares issued (in shares) | 0 | 62,596 |
Preferred stock, shares outstanding (in shares) | 0 | 62,596 |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Series B-1 Convertible Preferred Stock [Member] | ||
Preferred stock, shares authorized (in shares) | 105,000 | 105,000 |
Preferred stock, liquidation value | $ 100 | $ 100 |
Preferred stock, shares issued (in shares) | 0 | 105,000 |
Preferred stock, shares outstanding (in shares) | 0 | 105,000 |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues | ||
Revenue | $ 4,044,542 | $ 6,302,984 |
Costs and other expenses | ||
Costs and other expenses | 4,164,190 | 3,242,151 |
Gross Profit (Loss) | (119,648) | 3,060,833 |
Operating expenses | ||
Selling, general and administrative | 5,333,906 | 5,676,323 |
Research, development and engineering | 1,415,401 | 1,659,875 |
Total operating expenses | 6,749,307 | 7,336,198 |
Operating loss | (6,868,955) | (4,275,365) |
Other income | ||
Interest income | 80 | 27 |
Total other income | 80 | 27 |
Net loss | (6,868,875) | (4,275,338) |
Deemed dividend from trigger of anti-dilution provision feature | (1,428,966) | |
Convertible preferred stock dividends | (198,033) | (769,158) |
Net loss available to common stockholders | $ (8,495,874) | $ (5,044,496) |
Basic & Diluted Loss per Common Share (in dollars per share) | $ (0.73) | $ (0.76) |
Weighted Average Shares Outstanding: | ||
Basic and Diluted (in shares) | 11,607,933 | 6,638,382 |
Service [Member] | ||
Revenues | ||
Revenue | $ 1,012,576 | $ 1,193,190 |
Costs and other expenses | ||
Costs and other expenses | 443,210 | 439,291 |
License Fees and Other [Member] | ||
Revenues | ||
Revenue | 1,739,897 | 3,220,371 |
Hardware [Member] | ||
Revenues | ||
Revenue | 1,292,069 | 1,889,423 |
License [Member] | ||
Revenues | ||
Revenue | 1,739,897 | 3,220,371 |
Costs and other expenses | ||
Costs and other expenses | $ 3,720,980 | $ 2,802,860 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) | Conversion of A1 Preferred Stock to Common Stock [Member]Preferred Stock [Member]Series A-1 Convertible Preferred Stock [Member] | Conversion of A1 Preferred Stock to Common Stock [Member]Common Stock [Member] | Conversion of A1 Preferred Stock to Common Stock [Member]Additional Paid-in Capital [Member] | Conversion of A1 Preferred Stock to Common Stock [Member]Retained Earnings [Member] | Conversion of A1 Preferred Stock to Common Stock [Member] | Conversion of B1 Preferred Stock to Common Stock [Member]Preferred Stock [Member]Series B-1 Convertible Preferred Stock [Member] | Conversion of B1 Preferred Stock to Common Stock [Member]Common Stock [Member] | Conversion of B1 Preferred Stock to Common Stock [Member]Additional Paid-in Capital [Member] | Conversion of B1 Preferred Stock to Common Stock [Member]Retained Earnings [Member] | Conversion of B1 Preferred Stock to Common Stock [Member] | Preferred Stock [Member]Series A-1 Convertible Preferred Stock [Member] | Preferred Stock [Member]Series B-1 Convertible Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Series A-1 Convertible Preferred Stock [Member] | Series B-1 Convertible Preferred Stock [Member] | Total |
Balance (in shares) at Dec. 31, 2016 | 90,000 | 105,000 | 6,093,843 | 90,000 | 105,000 | |||||||||||||
Balance at Dec. 31, 2016 | $ 9 | $ 11 | $ 609 | $ 78,253,413 | $ (62,801,154) | $ 15,452,888 | ||||||||||||
Issuance of common stock for directors’ fees (in shares) | 11,244 | 1,610 | ||||||||||||||||
Issuance of common stock for directors’ fees | $ 1 | 32,029 | $ 32,030 | |||||||||||||||
Issuance of common stock pursuant to securities purchase agreement (in shares) | 555,556 | |||||||||||||||||
Issuance of common stock pursuant to securities purchase agreement | $ 56 | 1,999,944 | 2,000,000 | |||||||||||||||
Dividends declared on preferred stock | (769,158) | (769,158) | ||||||||||||||||
Conversion of dividends payable on A-1 preferred stock (in shares) | 150,000 | |||||||||||||||||
Conversion of dividends payable on A-1 preferred stock | $ 15 | 539,985 | 540,000 | |||||||||||||||
Conversion of preferred stock to common stock, Converted (in shares) | (27,404) | |||||||||||||||||
Conversion of preferred stock to common stock, Converted | $ (3) | |||||||||||||||||
Conversion of preferred stock to common stock (in shares) | 761,222 | |||||||||||||||||
Conversion of preferred stock to common stock | $ 76 | $ (73) | ||||||||||||||||
Issuance of stock for consultants (in shares) | 117,849 | |||||||||||||||||
Issuance of stock for consultants | $ 12 | 354,573 | 354,585 | |||||||||||||||
Stock issuance costs | (80,366) | $ (80,366) | ||||||||||||||||
Exercise of stock options (in shares) | 1,610 | 4,167 | ||||||||||||||||
Share-based compensation | 498,654 | $ 498,654 | ||||||||||||||||
Net loss | (4,275,338) | (4,275,338) | ||||||||||||||||
Conversion of preferred stock to common stock, Converted (in shares) | 27,404 | |||||||||||||||||
Conversion of preferred stock to common stock, Converted | $ 3 | |||||||||||||||||
Balance (in shares) at Dec. 31, 2017 | 62,596 | 105,000 | 7,691,324 | 62,596 | 105,000 | |||||||||||||
Balance at Dec. 31, 2017 | $ 6 | $ 11 | $ 769 | 80,829,001 | (67,076,492) | 13,753,295 | ||||||||||||
Issuance of common stock for directors’ fees (in shares) | 20,976 | |||||||||||||||||
Issuance of common stock for directors’ fees | $ 2 | 37,530 | 37,532 | |||||||||||||||
Issuance of common stock pursuant to securities purchase agreement (in shares) | 1,380,000 | |||||||||||||||||
Issuance of common stock pursuant to securities purchase agreement | $ 138 | 2,069,862 | 2,070,000 | |||||||||||||||
Dividends declared on preferred stock | (198,033) | (198,033) | ||||||||||||||||
Conversion of dividends payable on A-1 preferred stock (in shares) | 98,893 | |||||||||||||||||
Conversion of dividends payable on A-1 preferred stock | $ 10 | 356,005 | 356,015 | |||||||||||||||
Conversion of preferred stock to common stock, Converted (in shares) | 62,596 | 105,000 | ||||||||||||||||
Conversion of preferred stock to common stock, Converted | $ 6 | $ 11 | ||||||||||||||||
Conversion of preferred stock to common stock (in shares) | 1,738,778 | 2,916,668 | ||||||||||||||||
Conversion of preferred stock to common stock | $ 174 | $ (168) | $ 292 | $ (281) | ||||||||||||||
Stock issuance costs | (338,845) | $ (338,845) | ||||||||||||||||
Exercise of stock options (in shares) | 0 | |||||||||||||||||
Share-based compensation | 942,692 | $ 942,692 | ||||||||||||||||
Net loss | (6,868,875) | (6,868,875) | ||||||||||||||||
Adoption of ASC 606 | 240,017 | 240,017 | ||||||||||||||||
Conversion of preferred stock to common stock, Converted (in shares) | (62,596) | (105,000) | ||||||||||||||||
Conversion of preferred stock to common stock, Converted | $ (6) | $ (11) | ||||||||||||||||
Conversion of dividends payable on B-1 preferred stock (in shares) | 131,229 | |||||||||||||||||
Conversion of dividends payable on B-1 preferred stock | $ 13 | 472,411 | 472,424 | |||||||||||||||
Deemed dividend related to down-round features | 1,428,966 | (1,428,966) | ||||||||||||||||
Balance (in shares) at Dec. 31, 2018 | 13,977,868 | |||||||||||||||||
Balance at Dec. 31, 2018 | $ 1,398 | $ 85,599,140 | $ (75,134,316) | $ 10,466,222 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
CASH FLOW FROM OPERATING ACTIVITIES: | ||
Net loss | $ (6,868,875) | $ (4,275,338) |
Adjustments to reconcile net loss to cash used for operating activities: | ||
Allowance for doubtful accounts | 720,000 | 500,000 |
Depreciation | 84,617 | 52,709 |
Amortization of intangible assets | 15,596 | 13,726 |
Amortization of resaleable software license rights | 1,513,237 | 1,510,051 |
Amortization of capitalized contract costs | 123,171 | |
Share and warrant-based compensation for employees and consultants | 942,692 | 940,734 |
Stock based fees to directors | 37,532 | 32,030 |
Change in assets and liabilities: | ||
Accounts receivable | 1,341,914 | (1,002,700) |
Due from factor | 53,183 | (56,227) |
Capitalized contract costs | (202,353) | |
Inventory | (51,982) | (481,419) |
Resaleable software license rights | 1,144,961 | 74,552 |
Prepaid expenses and other | 1,843 | (33,472) |
Accounts payable | (17,961) | 32,388 |
Accrued liabilities | (139,793) | 352,700 |
Deferred revenue | (311,257) | (125,196) |
Net cash used for operating activities | (1,613,475) | (2,465,462) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Patents | (30,398) | (60,698) |
Capital expenditures | (52,060) | (166,060) |
Net cash used for investing activities | (82,458) | (226,758) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Issuance of common stock | 1,875,100 | 2,000,000 |
Costs to issue common stock | (143,945) | (80,366) |
Net cash provided by financing activities | 1,731,155 | 1,919,634 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 35,222 | (772,586) |
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 288,721 | 1,061,307 |
CASH AND CASH EQUIVALENTS, END OF YEAR | 323,943 | 288,721 |
Cash paid for: | ||
Interest | ||
Income taxes | ||
Noncash investing and financing activities: | ||
Accrual of unpaid preferred dividends | 198,033 | 630,408 |
Deemed dividend from trigger of anti-dilution provision feature | 1,428,966 | |
Issuance of common stock as a commitment fee for the Equity facility | 198,000 | |
Issuance of common stock as consulting services for the Equity facility | 244,084 | |
Conversion of Dividends Payable on Series A-1 Preferred Stock to Common Stock [Member] | ||
Noncash investing and financing activities: | ||
Conversion of preferred dividends payable to common stock | 356,015 | 540,000 |
Conversion of Series A-1 Shares into Common Stock [Member] | ||
Noncash investing and financing activities: | ||
Conversion of preferred stock to common stock, Converted | 6,259,600 | 2,740,400 |
Conversion of Dividends Payable on Series B-1 Preferred Stock to Common Stock [Member] | ||
Noncash investing and financing activities: | ||
Conversion of preferred dividends payable to common stock | 472,426 | |
Conversion of Series B-1 Shares into Common Stock [Member] | ||
Noncash investing and financing activities: | ||
Conversion of preferred stock to common stock, Converted | $ 10,500,000 |
Note A - The Company and Summar
Note A - The Company and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Business Description and Accounting Policies [Text Block] | NOTE A —THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Business The Company, founded in 1993, Basis of Presentation The Company has incurred significant losses to date, and at December 31, 2018, $75.1 December 31, 2018, $324,000, $289,000 December 31, 2017. As discussed below, the Company has financed itself in the past through access to the capital markets by issuing secured and convertible debt securities, convertible preferred stock, common stock, and through factoring receivables. The Company currently requires approximately $537,000 If the Company is unable to generate sufficient revenue to meet its goals, it will need to obtain additional third No not The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP"), which contemplate continuation of the Company as a going concern, and assumes continuity of operations, realization of assets and the satisfaction of liabilities and commitments in the normal course of business. The matters described in the preceding paragraphs raise substantial doubt about the Company’s ability to continue as a going concern. Recoverability of a major portion of the recorded asset amounts shown in the accompanying balance sheet is dependent upon the Company’s ability to meet its financing requirements on a continuing basis, and become profitable in its future operations. The accompanying consolidated financial statements do not Summary of Significant Accounting Policies A summary of the significant accounting policies consistently applied in the preparation of the accompanying consolidated financial statements follows: 1. Basis of Consolidation The accompanying consolidated financial statements include the accounts of BIO-key International, Inc. and its wholly-owned subsidiaries (collectively, the “Company”). Intercompany accounts and transactions have been eliminated in consolidation. 2. Use of Estimates Our consolidated financial statements are prepared in accordance with GAAP as set forth in the Financial Accounting Standards Board’s (FASB) Accounting Standards Codification (ASC) and consider the various staff accounting bulletins and other applicable guidance issued by the U.S. Securities and Exchange Commission (SEC). These accounting principles require us to make certain estimates, judgments and assumptions. The Company believes that the estimates, judgments and assumptions upon which it relies are reasonable based upon information available to us at the time that these estimates, judgments and assumptions are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities as of the date of the financial statements as well as the reported amounts of revenues and expenses during the periods presented. To the extent there are material differences between these estimates, judgments or assumptions and actual results, its consolidated financial statements will be affected. In many cases, the accounting treatment of a particular transaction is specifically dictated by GAAP and does not not 3. Revenue Recognition The Company adopted ASC 606, Revenue from Contracts with Customers 606 January 1, 2018 not 2018 606 2017 605, Revenue Recognition 605 606 In accordance with ASC 606, five ● Identify the contract with a customer ● Identify the performance obligations in the contract ● Determine the transaction price ● Allocate the transaction price to performance obligations in the contract ● Recognize revenue when or as the Company satisfies a performance obligation All of the Company's performance obligations, and associated revenue, are generally transferred to customers at a point in time, with the exception of support and maintenance, and professional services, which are generally transferred to the customer over time. Software licenses Software license revenue consist of fees for perpetual software licenses for one Hardware Hardware revenue consists of fees for associated equipment sold with or without a software license arrangement, such as servers, locks and fingerprint readers. Customers are not third may Support and Maintenance Support and Maintenance revenue consists of fees for unspecified upgrades, telephone assistance and bug fixes. The Company satisfies its Support and Maintenance performance obligation by providing “stand-ready” assistance as required over the contract period. The Company records deferred revenue (contract liability) at time of prepayment until the contracts term occurs. Revenue is recognized over time on a ratable basis over the contract term. Support and Maintenance contracts are up to one Professional Services Professional services revenues consist primarily of fees for deployment and optimization services, as well as training. The majority of the Company’s consulting contracts are billed on a time and materials basis, and revenue is recognized based on the amount billable to the customer in accordance with practical expedient ASC 606 10 55 18. Contracts with Multiple Performance Obligations Some contracts with customers contain multiple performance obligations. For these contracts, the Company accounts for individual performance obligations separately if they are distinct. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. The standalone selling prices are determined based on overall pricing objectives, taking into consideration market conditions and other factors, including the value of the contracts, the cloud applications sold, customer demographics, geographic locations, and the number and types of users within the contracts. The Company considered several factors in determining that control transfers to the customer upon shipment of hardware and availability of download of software. These factors include that legal title transfers to the customer, the Company has a present right to payment, and the customer has assumed the risks and rewards of ownership. Accounts receivable from customers are typically due within 30 not Costs to Obtain and Fulfill a Contract Costs to obtain and fulfill a contract are predominantly sales commissions earned by the sales force and are considered incremental and recoverable costs of obtaining a contract with a customer. These costs are deferred and then amortized over a period of benefit determined to be four 4. Cash Equivalents Cash equivalents consist of liquid investments with original maturities of three December 31, 2018 2017, 5. Accounts Receivable Accounts receivable are carried at original amount less an estimate made for doubtful receivables based on a review of all outstanding amounts on a monthly basis. Management determines the allowance for doubtful receivables by regularly evaluating individual customer receivables and considering a customer’s financial condition, credit history, and current economic conditions. Accounts receivable are written off when deemed uncollectible. As a result of the payment delays for a large customer, the Company has reserved $1,720,000 $1,000,000 December 31, 2018 2017, $100% 58% December 31, 2018 2017 December 31, 201 8 201 7 Accounts receivable - current $ 1,587,817 $ 2,889,731 Accounts receivable - non current 1,720,000 1,760,000 3,307,817 4,649,731 Allowance for doubtful accounts - current (13,785 ) (13,785 ) Allowance for doubtful accounts - non current (1,720,000 ) (1,000,000 ) (1,733,785 ) (1,013,785 ) Accounts receivable, net of allowances for doubtful accounts $ 1,574,032 $ 3,635,946 The allowance for doubtful accounts for the years ended December 31, 2018 2017 Balance at Beginning of Year Charged to Costs and Expenses Deductions From Reserves Balance at End of Year Year Ended December 31, 201 8 Allowance for Doubtful Accounts $ 1,013,785 $ 720,000 $ - $ 1,733,785 Year Ended December 31, 201 7 Allowance for Doubtful Accounts $ 513,785 $ 500,000 $ - $ 1,013,785 The bad debt expense is recorded in selling, general, and administrative expense. 6. Software License Rights Software license rights acquired for re-sale to end users are recorded as assets when purchased and are stated at the lower of cost or estimated net realizable value. The cost of the software license rights has been initially allocated pro-rata to the maximum number of resalable end-user licenses in the rights contract. Through 2018, 1 10 2 ten 3 twelve Amortization began in the first 2017, first first 4 5 10 January 1, 2019 The rights are also evaluated by management on a periodic basis to determine if estimated future net revenues, on a per sub-license basis, support the recorded basis of each license. If the estimated net revenues are less than the current carrying value of the capitalized software license rights, the Company will reduce the rights to their net realizable value. 7. Equipment and Leasehold Improvements, Intangible Assets and Depreciation and Amortization Equipment and leasehold improvements are stated at cost. Depreciation is provided for in amounts sufficient to relate the cost of depreciable assets to operations over the estimated service lives, principally using straight-line methods. Leasehold improvements are amortized over the shorter of the life of the improvement or the lease term, using the straight-line method. The estimated useful lives used to compute depreciation and amortization for financial reporting purposes are as follows: Years Equipment and leasehold improvements Equipment (years) 3 - 5 Furniture and fixtures (years) 3 - 5 Software (years) 3 Leasehold improvements life or lease term Intangible assets consist of patents. Patent costs are capitalized until patents are awarded. Upon award, such costs are amortized using the straight-line method over their respective economic lives. If a patent is denied, all costs are charged to operations in that year. 8. Impairment or Disposal of Long Lived Assets, including Intangible Assets The Company reviews long-lived assets, including intangible assets subject to amortization, whenever events or changes in circumstances indicate that the carrying amount of such an asset may not may not 9. Advertising Expense The Company expenses the costs of advertising as incurred. Advertising expenses for 2018 2017 $309,000 $386,000, 10. Deferred Revenue Deferred revenue includes customer advances and amounts that have been paid by customer for which the contractual maintenance terms have not 12 11. Research and Development Expenditures Research and development expenses include costs directly attributable to the conduct of research and development programs primarily related to the development of our software products and improving the efficiency and capabilities of our existing software. Such costs include salaries, payroll taxes, employee benefit costs, materials, supplies, depreciation on research equipment, services provided by outside contractors, and the allocable portions of facility costs, such as rent, utilities, insurance, repairs and maintenance, depreciation and general support services. All costs associated with research and development are expensed as incurred. 12. Earnings Per Share of Common Stock (“EPS”) The Company’s EPS is calculated by dividing net income (loss) applicable to common stockholders by the weighted-average number of common shares outstanding during the reporting period. Diluted EPS includes the effect from potential issuances of common stock, such as stock issuable pursuant to the conversion of preferred stock, exercise of stock options and warrants, when the effect of their inclusion is dilutive. See Note R - Earnings Per Share “EPS” for additional information. 13. Accounting for Stock-Based Compensation The Company accounts for share based compensation in accordance with the provisions of ASC 718 10, three four not may The following table presents share-based compensation expenses included in the Company’s consolidated statements of operations: Year ended December 31, 201 8 201 7 Selling, general and administrative $ 855,125 $ 864,036 Research, development and engineering 125,099 108,728 $ 980,224 $ 972,764 Valuation Assumptions for Stock Options For 2018 2017, 351,918 1,234,167 Year ended December 31, 201 8 201 7 Weighted average Risk free interest rate 2.70 % 1.92 % Expected life of options (in years) 4.50 4.51 Expected dividends 0 % 0 % Weighted average Volatility of stock price 143 % 138 % The stock volatility for each grant is determined based on the review of the experience of the weighted average of historical daily price changes of the Company’s common stock over the expected option term. The expected term was determined using the simplified method for estimating expected option life, which qualify as “plain-vanilla” options; and the risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods corresponding with the expected life of the option. 14. Derivative Liabilities In connection with the issuances of equity instruments or debt, the Company may may may may July 2017, 2017 11, 260 480 815 2017 11, not no 15. Income Taxes The provision for, or benefit from, income taxes includes deferred taxes resulting from the temporary differences in income for financial and tax purposes using the liability method. Such temporary differences result primarily from the differences in the carrying value of assets and liabilities. Future realization of deferred income tax assets requires sufficient taxable income within the carryback, carryforward period available under tax law. The Company evaluates, on a quarterly basis whether, based on all available evidence, if it is probable that the deferred income tax assets are realizable. Valuation allowances are established when it is more likely than not not 740 10, may The Company accounts for uncertain tax provisions in accordance with ASC 740 10 05, 16. Recent Accounting Pronouncements In May 2014, No. 2014 09, 2014 09 606 January 1, 2018 In February 2016, 2016 02, 12 January 1, 2019 not 2016 02 not not 2016 02 not January 1, 2019 In July 2017, 2017 11, 260 480 815 2017 11, not no 480, not December 15, 2018, 2017 11, 2017 not 2018 In August 2018, No. 2018 15, 2018 15” 2018 15 December 15, 2019, 2018 15 2018 15 Management does not not |
Note B - Revenue From Contracts
Note B - Revenue From Contracts With Customers | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | NOTE B—REVENUE FROM CONTRACTS WITH CUSTOMERS The Company adopted ASC 606 January 1, 2018 not Disaggregation of Revenue The following table summarizes revenue from contracts with customers for the years ended: North America South America EMEA* Asia December 31, 2018 License fees $ 318,271 $ 32,000 $ 278,516 $ 1,111,110 $ 1,739,897 Hardware 439,480 53,200 477,674 321,715 1,292,069 Support and Maintenance 805,800 665 60,820 27,321 894,606 Professional services 115,970 - 2,000 - 117,970 Total Revenues $ 1,679,521 $ 85,865 $ 819,010 $ 1,460,146 $ 4,044,542 North America South America EMEA* Asia December 31, 2017 License fees $ 3,104,509 $ 583 $ 4,279 $ 111,000 $ 3,220,371 Hardware 1,190,500 2,341 8,252 688,330 1,889,423 Support and Maintenance 458,340 2,364 37,907 2,367 500,978 Professional services 686,812 - - 5,400 692,212 Total Revenues $ 5,440,161 $ 5,288 $ 50,438 $ 807,097 $ 6,302,984 * EMEA – Europe, Middle East, Africa Financial Statement Impact of Adopting ASC 606 The Company adopted ASC 606 not January 1, 2018 606, As a result of applying the modified retrospective method to adopt the new revenue guidance, the following adjustments were made to the following select condensed consolidated balance sheet line items as of January 1, 2018: As reported - December 31, 2017 Adjustments As adjusted - January 1, 2018 Capitalized contract assets $ - $ 240,017 $ 240,017 Total assets $ 16,078,822 $ 240,017 $ 16,318,839 Accumulated deficit $ (67,076,492 ) $ 240,017 $ (66,836,475 ) Total Stockholders’ Equity $ 13,753,295 $ 240,017 $ 13,993,312 Total Liabilities and Stockholders’ Equity $ 16,078,822 $ 240,017 $ 16,318,839 Impact of New Revenue Guidance on Financial Statement Line Items The following table compares selected reported condensed consolidated balance sheet, statement of operations and cash flows, as of and for the year ended December 31, 2018, As of December 31, 2018 As reported Pro-forma Increase (decrease) Consolidated balance sheet data: Capitalized contract costs, net $ 319,199 $ - $ (319,199 ) Year Ended December 31, 2018 As reported Pro-forma Increase (decrease) Consolidated statement of operations data: Selling, general and administrative expenses 5,333,906 5,413,088 79,182 Net loss (6,868,875 ) (6,948,057 ) (79,182 ) Net loss available to common stockholders (8,495,874 ) (8,575,056 ) (79,182 ) Basic & Diluted Loss per Common Share (0.73 ) (0.74 ) 0.00 Year Ended December 31, 2018 As reported Pro-forma Increase (decrease) Consolidated statement of cash flow data: Net loss (6,868,875 ) (6,948,057 ) (79,182 ) Change in contract assets (79,182 ) - 79,182 Net cash used by operating activities (1,613,475 ) (1,613,475 ) - Revenue recognized during the year ended December 31, 2018 $382,000 not $196,609 $507,866 December 31, 2018 December 31, 2017, Transaction Price Allocated to the Remaining Performance Obligations ASC 606 not December 31, 2018. ● The performance obligation is part of a contract that has an original expected duration of one 606 10 50 14. At December 31, 2018 one |
Note C - Factoring
Note C - Factoring | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Factoring [Text Block] | NOTE C —FACTORING Due from factor consisted of the following as of December 31: Original Invoice Value Factored Amount Factored Balance due Year Ended December 31, 201 8 Factored accounts receivable $ 221,120 $ 164,438 $ 56,682 Year Ended December 31, 201 7 Factored accounts receivable $ 423,349 $ 313,484 $ 109,865 The Company entered into an accounts receivable factoring arrangement with a financial institution (the “Factor”) which has been extended to October 31, 2019. $150,000 35% 75% 2.75% 15% Years Ended December 31, 201 8 201 7 Factoring fees $ 186,845 $ 224,142 |
Note D - Fair Values of Financi
Note D - Fair Values of Financial Instruments | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | NOTE D —FAIR VALUES OF FINANCIAL INSTRUMENTS Cash and cash equivalents, accounts receivable, inventory, due from factor, accounts payable and accrued liabilities are carried at, or approximate, fair value because of their short-term nature. |
Note E - Concentration of Risk
Note E - Concentration of Risk | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Concentration Risk Disclosure [Text Block] | NOTE E —CONCENTRATION OF RISK Financial instruments which potentially subject the Company to risk primarily consist of cash and accounts receivables. The Company maintains its cash and cash equivalents with various financial institutions, which, at times may No December 31, 2018 2017. not The Company extends credit to customers on an unsecured basis in the normal course of business. The Company’s policy is to perform an analysis of the recoverability of its receivables at the end of each reporting period and to establish allowances where appropriate. The Company analyzes historical bad debts and contract losses, customer concentrations, and customer credit-worthiness when evaluating the adequacy of the allowances. The Company had certain customers whose revenue individually represented 10% Years Ended December 31, 201 8 201 7 Customer A 27 % * Customer B 14 % 54 % Customer C 13 % * * Less than 10% The Company had certain customers whose accounts receivable balances individually represented 10% As of December 31, 201 8 201 7 Customer A 70 % * Customer B * 87 % The long term accounts receivable is represented by one $1,720,000 forty-two December 31, 2018. $1,720,000 $1,000,000 100% 58% * Less than 10% |
Note F - Inventory
Note F - Inventory | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | NOTE F —INVENTORY Inventory is stated at the lower of cost, determined on a first first December 31: 201 8 201 7 Current Finished goods 496,358 487,858 Fabricated assemblies 502,471 458,989 Total current inventory $ 998,829 $ 946,847 |
Note G - Resalable Software Lic
Note G - Resalable Software Licenses Rights | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Research, Development, and Computer Software Disclosure [Text Block] | NOTE G —RESALABLE SOFTWARE LICENSES RIGHTS On November 11, 2015, $12,000,000. 12 $1,125,000 The Company has determined the software license rights to be a finite lived intangible asset, and estimated that the software license rights shall be economically used over a 10 fourth 2015, not January 2017. first 2017. Through 2018, 1 2 ten 3 $2,640,000 $1,556,687 twelve December 31, 2018 2017, 2018 $4,198,596 $7,801,404 December 31, 2018. first 4 5 10 January 1, 2019 On December 31, 2015, third $180,000 three 2018. $18,198 $14,400 $35,916 twelve December 31, 2018 2017, $65,794 $114,206 December 31, 2018. 201 8 201 7 Current software license rights $ 1,125,000 $ 2,640,000 Non-current software license rights 6,790,610 7,933,808 Total software license rights $ 7,915,610 $ 10,573,808 During the year ended December 31, 2018, no may not not not December 31, 2018 2017. Estimated minimum amortization expense based on straight line amortization of the software license rights for each of the next five Years ending December 31 2019 1,125,000 * 2020 1,114,500 2021 1,114,500 2022 1,114,500 2023 1,114,500 Thereafter 2,332,610 * - Includes increase vs. straight line due to expected deployment of second fourth 2018 |
Note H - Equipment and Leasehol
Note H - Equipment and Leasehold Improvements | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | NOTE H —EQUIPMENT AND LEASEHOLD IMPROVEMENTS Equipment and leasehold improvements consisted of the following as of December 31: 201 8 201 7 Equipment $ 619,533 $ 567,473 Furniture and fixtures 164,079 164,079 Software 32,045 32,045 Leasehold improvements 23,403 23,403 839,060 787,000 Less accumulated depreciation and amortization (690,452 ) (605,835 ) Total $ 148,608 $ 181,165 Depreciation was $84,617 $52,709 2018 2017, |
Note I - Intangible Assets
Note I - Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Intangible Assets Disclosure [Text Block] | NOTE I —INTANGIBLE ASSETS Intangible assets consisted of the following as of December 31: 201 8 201 7 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Patents and patents pending $ 378,344 $ (182,438 ) $ 195,906 $ 347,946 $ (166,842 ) $ 181,104 Total $ 378,344 $ (182,438 ) $ 195,906 $ 347,946 $ (166,842 ) $ 181,104 Aggregate amortization expense for 2018 2017 $15,596 $13,726, December 31, 2018 $13,000 2019 2023, $131,000 |
Note J - Accrued Liabilities
Note J - Accrued Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | NOTE J —ACCRUED LIABILITIES Accrued liabilities consisted of the following as of December 31: 201 8 201 7 Compensation $ 224,135 $ 341,884 Compensated absences 154,169 164,132 Accrued legal and accounting fees 77,133 85,633 Sales tax payable 9,436 5,614 Factoring fees 19,000 32,357 Other 64,359 58,403 Total $ 548,232 $ 688,023 |
Note K - Related Party
Note K - Related Party | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | NOTE K —RELATED PARTY Licensing Agreement with Subsidiaries of China Goldjoy Group Limited. On November 11, 2015, one $12,000,000 October 2016 31.4% Securities Purchase Agreements with Wong Kwok Fong On April 28, 2017, 277,778 $3.60 $1,000,000. On September 22, 2017, 427,778 138,889 $1,540,000, $3.60 $1,000,000 277,778 $540,000 1 150,000 On August 7, 2017, 90,000 1 1 9.99% 35%. 1 61st On October 17, 2017, 27,404 1 $3.60 761,222 On April 3, 2018, 39,088 1 $3.60 $330,552 1,177,598 On May 31, 2018 23,508 1 $3.60 $25,463 660,073 |
Note L - Deferred Revenue
Note L - Deferred Revenue | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Deferred Revenue [Text bLock] | NOTE L —DEFERRED REVENUE Deferred revenue represents unearned revenue from customer prepayments prior to maintenance contractual term. Maintenance contracts include provisions for unspecified when-and-if available product updates and customer telephone support services, and are recognized ratably over the term of the service period. At December 31, 2018 2017, $197,000 $508,000, |
Note M - Commitments and Contin
Note M - Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Commitments Disclosure [Text Block] | NOTE M —COMMITMENTS AND CONTINGENCIES Operating Leases The Company does not three 2023. Future minimum rental commitments of non-cancelable operating leases are approximately as follows: Years ending December 31, 2019 192,000 2020 156,000 2021 127,000 2022 131,000 2023 89,000 $ 695,000 Rental expense was approximately $234,000 $221,000 2018 2017, Litigation From time to time, we may December 31, 2018, not |
Note N - Equity
Note N - Equity | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE N — EQUITY 1. Within the limits and restrictions provided in the Company’s Certificate of Incorporation, the Board of Directors has the authority, without further action by the shareholders, to issue up to 5,000,000 $.0001 one December 31, 2018, 100,000 1 90,000 2015 0 December 31, 2018, 105,000 1 105,000 2015 0 December 31, 2018. Series A- 1 Convertible Preferred Stock On October 22 29, 2015, 84,500 1 1 $100.00 $8,450,000. November 11, 2015, 5,500 1 $100.00 $550,000. 1 1 $3.60 9.99% 1 August 7, 2017 35% 61 1 6% April 1, July, 1, October 1, January 1 October 1, 2017, ten 10 January 1, 2018, The holders of the Series A- 1 one 1 not 1 1 $100.00 1 Between September 22, 2017 May 31, 2018, 1 1 2,500,000 248,893 $896,015 1 As a result of the forgoing conversions, there are no 1 December 31, 2018. Overall balances and conversion of Series A- 1 Series A-1 Accrued Dividends Balance – January 1, 2017 90,000 $ 270,000 Accrual of dividends – Q1 2017 135,000 Accrual of dividends – Q2 2017 135,000 Accrual of dividends – Q3 2017 135,000 Conversion into common stock – September 2017 - (540,000 ) Conversion into common stock – October 2017 (27,404 ) - Accrual of dividends – Q4 2017 101,658 Balance – December 31, 2017 62,596 $ 236,658 Accrual of dividends – Q1 2018 93,894 Conversion into common stock – April 2018 (39,088 ) (330,552 ) Accrual of dividends – Q2 2018 (until final conversion) 25,463 Conversion into common stock – May 2018 (23,508 ) (25,463 ) Balance – December 31, 2018 - $ - The Series A- 1 815 15, 815 40 15, 1 $3.60 December 31, 2017, ten 10 not Series B- 1 On November 11, 2015, 105,000 1 1 $100.00 $10,500,000. 1 1 $3.60 9.99% 1 19.99% 61 1 2.5% April 1, July, 1, October 1, January 1 1 ten 10 The holders of the Series B- 1 one 1 not 1 1 $100.00 1 Between March 23, 2018 May 23, 2018, 1 1 2,916,668 131,229 $472,426 1 As a result of the forgoing conversions, there are no 1 December 31, 2018. Overall balances and conversion of Series B- 1 Series B-1 Accrued Dividends Balance – January 1, 2017 105,000 $ 131,250 Accrual of dividends – Q1 2017 65,625 Accrual of dividends – Q2 2017 65,625 Accrual of dividends – Q3 2017 65,625 Accrual of dividends – Q4 2017 65,625 Balance – December 31, 2017 105,000 393,750 Conversion into common stock – March 2018 (60,420 ) (417,084 ) Accrual of dividends – Q1 2018 62,268 Accrual of dividends – Q2 2018 (until final conversion) 16,408 Conversion into common stock – May 2018 (44,580 ) (55,342 ) Balance – December 31, 2018 - $ - The Series B- 1 815 15, 815 40 15, 1 $3.60 ten 10 not 2. Holders of common stock have equal rights to receive dividends when, as and if declared by the Board of Directors, out of funds legally available therefor. Holders of common stock have one not Holders of common stock are entitled, upon liquidation of the Company, to share ratably in the net assets available for distribution, subject to the rights, if any, of holders of any preferred stock then outstanding. Shares of common stock are not no Issuances of Common Stock On March 23, 2018, 1 1,794,190 On April 3, 2018, 1 1,177,598 On May 23, 2018, 1 1,253,707 On May 31, 2018, 1 660,073 On August 22, 2018, 1,200,000 one 0.75 $1.50 $1.50. five 45 180,000 135,000 August 22, 2018, 1,380,000 1,035,000 August 24, 2018 $2,070,000. 7% $144,900 $50,000 $1,875,100 Costs of $143,945 2018 Issuances to Directors, Executive Officers and Consultants During the year ended December 31, 2018, 20,976 $37,532. During the year ended December 31, 2017, 11,244 $32,030. During the year ended December 31, 2017, 117,849 $354,585 Employees’ exercise options During 2018, no 4,167 1,610 2017. Derivative Liabilities In connection with the issuances of equity instruments or debt, the Company may may may may July 2017, 2017 11, 260 480 815 2017 11, not no Securities Purchase Agreement dated November 13, 2014 Pursuant to a Securities Purchase Agreement, dated November 13, 2014, 664,584 996,877 $1,595,000. The warrants have a term of five $3.60 February 2015. $3.60 not Pursuant to the Underwriting Agreement with Maxim Group, on August 24, 2018 $1.50 996,877 2,392,502, $3.60 $1.50 $1,288,139 As a result of the early adoption of ASU 2017 11, no no no Securities Purchase Agreement dated September 23, 2015 On September 23, 2015, 69,445 $3.60 five The warrants have customary anti-dilution protections including a "full ratchet" anti-dilution adjustment provision which are triggered in the event the Company sells or $3.60 not Pursuant to the Underwriting Agreement with Maxim Group, on August 24, 2018 $1.50 69,445 166,668, $3.60 $1.50 $140,827 As a result of the early adoption of ASU 2017 11, no no no 3. The Company has issued warrants to certain creditors, investors, investment bankers and consultants. A summary of warrant activity is as follows: Total Warrants Weighted average exercise price Weighted average remaining life (in years) Aggregate intrinsic value Outstanding, as of December 31, 2016 1,260,080 3.84 2.78 Granted 138,889 3.60 Exercised — — Forfeited — — Expired — — Outstanding, as of December 31, 2017 1,398,969 3.81 2.06 — Granted 1,035,000 1.50 Increase due to trigger of anti-dilution provision feature 1,492,848 1.50 Exercised — — Forfeited — — Expired (145,841 ) 6.00 Outstanding, as of December 31, 2018 3,780,976 1.59 2.05 — Vested or expected to vest at December 31, 2018 3,780,976 1.59 2.05 — Exercisable at December 31, 2018 3,780,976 1.59 2.05 — |
Note O - Stock Options
Note O - Stock Options | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | NOTE O —STOCK OPTIONS 2004 Stock Option Plan On October 12, 2004, 2004 2004 2004 not not 166,667 may not 85% may not ten 2004 2004 October 2014. 2015 Stock Option Plan On January 27, 2016, 2015 2015 666,667 may not 100 110% may not ten 2015 may may 2015 December 2025. Non-Plan Stock Options Periodically, the Company has granted options outside of the 2004 2015 Stock Option Activity Information summarizing option activity is as follows: Number of Options Weighted average Weighted average remaining Aggregate 2004 Plan 2015 Plan Non Plan Total exercise price life (in years) intrinsic value Outstanding, as of December 31, 2016 69,380 25,003 247,280 341,663 $ 3.99 Granted — 64,167 1,170,000 1,234,167 2.69 Exercised — — (4,167 ) (4,167 ) 2.16 Forfeited — (7,084 ) (65,140 ) (72,224 ) 2.62 Expired (17,084 ) — (4,862 ) (21,946 ) 8.86 Outstanding, as of December 31, 2017 52,296 82,086 1,343,111 1,477,493 $ 2.91 5.64 $ 0 Granted — 351,918 — 351,918 1.97 Exercised — — — — — Forfeited — (38,613 ) (111,253 ) (149,866 ) 2.63 Expired (18,961 ) (13,473 ) (59,097 ) (91,531 ) 3.03 Outstanding, as of December 31, 2018 33,335 3 81 ,918 1,1 72 ,761 1, 588,014 $ 2. 7 2 5.00 $ 0 Vested or expected to vest at December 31, 2018 1, 321,981 $ 2. 79 4. 8 3 $ 0 Exercisable at December 31, 2018 593,573 $ 3. 17 3.94 $ 0 The options outstanding and exercisable at December 31, 2018 Options Outstanding Options Exercisable Range of exercise prices Number of shares Weighted average exercise price Weighted average remaining life (in years) Number exercisable Weighted average exercise price $ 1.83 - 2.50 413,843 $ 2.01 5.88 81,230 $ 2.15 2.51 - 3.50 1,000,415 2.69 5.23 338,587 2.69 3.51 - 4.92 173,756 4.58 1.76 173,756 4.58 $ 1.83 - 4.92 1,588,014 593,573 The aggregate intrinsic value in the table above represents the total intrinsic value, based on the Company’s closing stock price of $0.75 December 31, 2018, December 31, 2018 0. The weighted average fair value of options granted during the years ended December 31, 2018 2017 $1.53 $2.32 December 31, 2018 2017 $0 $5,667, December 31, 2017 2016 $946,435 $197,281 As of December 31, 2018, $1,228,771 1.50 |
Note P - Income Taxes
Note P - Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | NOTE P —INCOME TAXES There was no December 31, 2018 2017. In December 22, 2017, 34% 21%, 21%. The Company has deferred taxes due to income tax credits, net operating loss carryforwards, and the effect of temporary differences between the carrying values of certain assets and liabilities for financial reporting and income tax purposes. Significant components of deferred taxes are as follows at December 31: 201 8 201 7 Accrued compensation $ 91,000 $ 118,000 Accounts receivable allowance 474,000 277,000 Stock-based compensation 644,000 387,000 Basis differences in fixed assets (13,000 ) (18,000 ) Basis differences in intangible assets 50,000 46,000 Net operating loss and credit carryforwards 12,735,000 12,052,000 Valuation allowances (13,981,000 ) (12,862,000 ) $ — $ — The Company has a valuation allowance against the full amount of its net deferred taxes due to the uncertainty of realization of the deferred tax assets due to operating loss history of the Company. The Company currently provides a valuation allowance against deferred taxes when it is more likely than not not not As of December 31, 2018, $60 2021 2037. 382 A reconciliation of the effective income tax rate on operations reflected in the Statements of Operations to the US Federal statutory income tax rate is presented below. 201 8 201 7 Federal statutory income tax rate 21 % 34 % Permanent differences — — Change in tax laws/tax rate — (13 ) Effect of net operating loss (21 ) (21 ) Effective tax rate — % — % The Company has not 2015 2018 not not December 31, 2018 2017. |
Note Q - Profit Sharing Plan
Note Q - Profit Sharing Plan | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | NOTE Q —PROFIT SHARING PLAN The Company has established a savings plan under section 401 one 401 may not may no December 31, 2018 2017. |
Note R - Earnings Per Share (EP
Note R - Earnings Per Share (EPS) | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | NOTE R —EARNINGS PER SHARE (EPS) The Company’s basic EPS is calculated using net income (loss) available to common shareholders and the weighted-average number of shares outstanding during the reporting period. Diluted EPS includes the effect from potential issuance of common stock, such as stock issuable pursuant to the exercise of stock options and warrants and the assumed conversion of preferred stock. The reconciliation of the numerator of the basic and diluted EPS calculations, due to the inclusion of preferred stock dividends was as follows for the following fiscal years ended December 31: 201 8 201 7 Basic Numerator: Loss from continuing operations $ (6,868,875 ) $ (4,275,338 ) Deemed dividend from trigger of anti-dilution provision feature (1,428,966 ) - Convertible preferred stock dividends (198,033 ) (769,158 ) Net loss available to common stockholders (basic and diluted EPS) $ (8,495,874 ) $ (5,044,496 ) The following table summarizes the weighted average securities that were excluded from the diluted per share calculation because the effect of including these potential shares was antidilutive. Years ended December 31, 201 8 201 7 Preferred stock 1,426,756 5,264,422 Stock options 83 15,529 Warrants 697,879 2,109 Potentially dilutive securities 2,124,718 5,282,060 Items excluded from the diluted per share calculation because the exercise price was greater than the average market price of the common shares: Years ended December 31, 201 8 201 7 Stock options 1,583,014 1,390,428 Warrants 186,806 1,351,052 Total 1,769,820 2,741,480 |
Note S - Subsequent Events
Note S - Subsequent Events | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | NOTE S —SUBSEQUENT EVENTS On March 21, 2019, 12,716 On March 21, 2019, 235,334 three seven $1.18. On March 28, 2019, 1,104 The Company has reviewed subsequent events through the date of this filing. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The Company has incurred significant losses to date, and at December 31, 2018, $75.1 December 31, 2018, $324,000, $289,000 December 31, 2017. As discussed below, the Company has financed itself in the past through access to the capital markets by issuing secured and convertible debt securities, convertible preferred stock, common stock, and through factoring receivables. The Company currently requires approximately $537,000 If the Company is unable to generate sufficient revenue to meet its goals, it will need to obtain additional third No not The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP"), which contemplate continuation of the Company as a going concern, and assumes continuity of operations, realization of assets and the satisfaction of liabilities and commitments in the normal course of business. The matters described in the preceding paragraphs raise substantial doubt about the Company’s ability to continue as a going concern. Recoverability of a major portion of the recorded asset amounts shown in the accompanying balance sheet is dependent upon the Company’s ability to meet its financing requirements on a continuing basis, and become profitable in its future operations. The accompanying consolidated financial statements do not |
Consolidation, Policy [Policy Text Block] | 1. Basis of Consolidation The accompanying consolidated financial statements include the accounts of BIO-key International, Inc. and its wholly-owned subsidiaries (collectively, the “Company”). Intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates, Policy [Policy Text Block] | 2. Use of Estimates Our consolidated financial statements are prepared in accordance with GAAP as set forth in the Financial Accounting Standards Board’s (FASB) Accounting Standards Codification (ASC) and consider the various staff accounting bulletins and other applicable guidance issued by the U.S. Securities and Exchange Commission (SEC). These accounting principles require us to make certain estimates, judgments and assumptions. The Company believes that the estimates, judgments and assumptions upon which it relies are reasonable based upon information available to us at the time that these estimates, judgments and assumptions are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities as of the date of the financial statements as well as the reported amounts of revenues and expenses during the periods presented. To the extent there are material differences between these estimates, judgments or assumptions and actual results, its consolidated financial statements will be affected. In many cases, the accounting treatment of a particular transaction is specifically dictated by GAAP and does not not |
Revenue from Contract with Customer [Policy Text Block] | 3. Revenue Recognition The Company adopted ASC 606, Revenue from Contracts with Customers 606 January 1, 2018 not 2018 606 2017 605, Revenue Recognition 605 606 In accordance with ASC 606, five ● Identify the contract with a customer ● Identify the performance obligations in the contract ● Determine the transaction price ● Allocate the transaction price to performance obligations in the contract ● Recognize revenue when or as the Company satisfies a performance obligation All of the Company's performance obligations, and associated revenue, are generally transferred to customers at a point in time, with the exception of support and maintenance, and professional services, which are generally transferred to the customer over time. Software licenses Software license revenue consist of fees for perpetual software licenses for one Hardware Hardware revenue consists of fees for associated equipment sold with or without a software license arrangement, such as servers, locks and fingerprint readers. Customers are not third may Support and Maintenance Support and Maintenance revenue consists of fees for unspecified upgrades, telephone assistance and bug fixes. The Company satisfies its Support and Maintenance performance obligation by providing “stand-ready” assistance as required over the contract period. The Company records deferred revenue (contract liability) at time of prepayment until the contracts term occurs. Revenue is recognized over time on a ratable basis over the contract term. Support and Maintenance contracts are up to one Professional Services Professional services revenues consist primarily of fees for deployment and optimization services, as well as training. The majority of the Company’s consulting contracts are billed on a time and materials basis, and revenue is recognized based on the amount billable to the customer in accordance with practical expedient ASC 606 10 55 18. Contracts with Multiple Performance Obligations Some contracts with customers contain multiple performance obligations. For these contracts, the Company accounts for individual performance obligations separately if they are distinct. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. The standalone selling prices are determined based on overall pricing objectives, taking into consideration market conditions and other factors, including the value of the contracts, the cloud applications sold, customer demographics, geographic locations, and the number and types of users within the contracts. The Company considered several factors in determining that control transfers to the customer upon shipment of hardware and availability of download of software. These factors include that legal title transfers to the customer, the Company has a present right to payment, and the customer has assumed the risks and rewards of ownership. Accounts receivable from customers are typically due within 30 not Costs to Obtain and Fulfill a Contract Costs to obtain and fulfill a contract are predominantly sales commissions earned by the sales force and are considered incremental and recoverable costs of obtaining a contract with a customer. These costs are deferred and then amortized over a period of benefit determined to be four |
Cash and Cash Equivalents, Policy [Policy Text Block] | 4. Cash Equivalents Cash equivalents consist of liquid investments with original maturities of three December 31, 2018 2017, |
Receivables, Policy [Policy Text Block] | 5. Accounts Receivable Accounts receivable are carried at original amount less an estimate made for doubtful receivables based on a review of all outstanding amounts on a monthly basis. Management determines the allowance for doubtful receivables by regularly evaluating individual customer receivables and considering a customer’s financial condition, credit history, and current economic conditions. Accounts receivable are written off when deemed uncollectible. As a result of the payment delays for a large customer, the Company has reserved $1,720,000 $1,000,000 December 31, 2018 2017, $100% 58% December 31, 2018 2017 December 31, 201 8 201 7 Accounts receivable - current $ 1,587,817 $ 2,889,731 Accounts receivable - non current 1,720,000 1,760,000 3,307,817 4,649,731 Allowance for doubtful accounts - current (13,785 ) (13,785 ) Allowance for doubtful accounts - non current (1,720,000 ) (1,000,000 ) (1,733,785 ) (1,013,785 ) Accounts receivable, net of allowances for doubtful accounts $ 1,574,032 $ 3,635,946 The allowance for doubtful accounts for the years ended December 31, 2018 2017 Balance at Beginning of Year Charged to Costs and Expenses Deductions From Reserves Balance at End of Year Year Ended December 31, 201 8 Allowance for Doubtful Accounts $ 1,013,785 $ 720,000 $ - $ 1,733,785 Year Ended December 31, 201 7 Allowance for Doubtful Accounts $ 513,785 $ 500,000 $ - $ 1,013,785 The bad debt expense is recorded in selling, general, and administrative expense. |
Software License Right, Policy [Policy Text Block] | 6. Software License Rights Software license rights acquired for re-sale to end users are recorded as assets when purchased and are stated at the lower of cost or estimated net realizable value. The cost of the software license rights has been initially allocated pro-rata to the maximum number of resalable end-user licenses in the rights contract. Through 2018, 1 10 2 ten 3 twelve Amortization began in the first 2017, first first 4 5 10 January 1, 2019 The rights are also evaluated by management on a periodic basis to determine if estimated future net revenues, on a per sub-license basis, support the recorded basis of each license. If the estimated net revenues are less than the current carrying value of the capitalized software license rights, the Company will reduce the rights to their net realizable value. |
Property, Plant and Equipment, Policy [Policy Text Block] | 7. Equipment and Leasehold Improvements, Intangible Assets and Depreciation and Amortization Equipment and leasehold improvements are stated at cost. Depreciation is provided for in amounts sufficient to relate the cost of depreciable assets to operations over the estimated service lives, principally using straight-line methods. Leasehold improvements are amortized over the shorter of the life of the improvement or the lease term, using the straight-line method. The estimated useful lives used to compute depreciation and amortization for financial reporting purposes are as follows: Years Equipment and leasehold improvements Equipment (years) 3 - 5 Furniture and fixtures (years) 3 - 5 Software (years) 3 Leasehold improvements life or lease term Intangible assets consist of patents. Patent costs are capitalized until patents are awarded. Upon award, such costs are amortized using the straight-line method over their respective economic lives. If a patent is denied, all costs are charged to operations in that year. |
Impairment or Disposal of Long-Lived Assets, Including Intangible Assets, Policy [Policy Text Block] | 8. Impairment or Disposal of Long Lived Assets, including Intangible Assets The Company reviews long-lived assets, including intangible assets subject to amortization, whenever events or changes in circumstances indicate that the carrying amount of such an asset may not may not |
Advertising Costs, Policy [Policy Text Block] | 9. Advertising Expense The Company expenses the costs of advertising as incurred. Advertising expenses for 2018 2017 $309,000 $386,000, |
Deferred Revenue, Policy [Policy Text Block] | 10. Deferred Revenue Deferred revenue includes customer advances and amounts that have been paid by customer for which the contractual maintenance terms have not 12 |
Research and Development Expense, Policy [Policy Text Block] | 11. Research and Development Expenditures Research and development expenses include costs directly attributable to the conduct of research and development programs primarily related to the development of our software products and improving the efficiency and capabilities of our existing software. Such costs include salaries, payroll taxes, employee benefit costs, materials, supplies, depreciation on research equipment, services provided by outside contractors, and the allocable portions of facility costs, such as rent, utilities, insurance, repairs and maintenance, depreciation and general support services. All costs associated with research and development are expensed as incurred. |
Earnings Per Share, Policy [Policy Text Block] | 12. Earnings Per Share of Common Stock (“EPS”) The Company’s EPS is calculated by dividing net income (loss) applicable to common stockholders by the weighted-average number of common shares outstanding during the reporting period. Diluted EPS includes the effect from potential issuances of common stock, such as stock issuable pursuant to the conversion of preferred stock, exercise of stock options and warrants, when the effect of their inclusion is dilutive. See Note R - Earnings Per Share “EPS” for additional information. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | 13. Accounting for Stock-Based Compensation The Company accounts for share based compensation in accordance with the provisions of ASC 718 10, three four not may The following table presents share-based compensation expenses included in the Company’s consolidated statements of operations: Year ended December 31, 201 8 201 7 Selling, general and administrative $ 855,125 $ 864,036 Research, development and engineering 125,099 108,728 $ 980,224 $ 972,764 Valuation Assumptions for Stock Options For 2018 2017, 351,918 1,234,167 Year ended December 31, 201 8 201 7 Weighted average Risk free interest rate 2.70 % 1.92 % Expected life of options (in years) 4.50 4.51 Expected dividends 0 % 0 % Weighted average Volatility of stock price 143 % 138 % The stock volatility for each grant is determined based on the review of the experience of the weighted average of historical daily price changes of the Company’s common stock over the expected option term. The expected term was determined using the simplified method for estimating expected option life, which qualify as “plain-vanilla” options; and the risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods corresponding with the expected life of the option. |
Derivatives, Policy [Policy Text Block] | 14. Derivative Liabilities In connection with the issuances of equity instruments or debt, the Company may may may may July 2017, 2017 11, 260 480 815 2017 11, not no |
Income Tax, Policy [Policy Text Block] | 15. Income Taxes The provision for, or benefit from, income taxes includes deferred taxes resulting from the temporary differences in income for financial and tax purposes using the liability method. Such temporary differences result primarily from the differences in the carrying value of assets and liabilities. Future realization of deferred income tax assets requires sufficient taxable income within the carryback, carryforward period available under tax law. The Company evaluates, on a quarterly basis whether, based on all available evidence, if it is probable that the deferred income tax assets are realizable. Valuation allowances are established when it is more likely than not not 740 10, may The Company accounts for uncertain tax provisions in accordance with ASC 740 10 05, |
New Accounting Pronouncements, Policy [Policy Text Block] | 16. Recent Accounting Pronouncements In May 2014, No. 2014 09, 2014 09 606 January 1, 2018 In February 2016, 2016 02, 12 January 1, 2019 not 2016 02 not not 2016 02 not January 1, 2019 In July 2017, 2017 11, 260 480 815 2017 11, not no 480, not December 15, 2018, 2017 11, 2017 not 2018 In August 2018, No. 2018 15, 2018 15” 2018 15 December 15, 2019, 2018 15 2018 15 Management does not not |
Note A - The Company and Summ_2
Note A - The Company and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | December 31, 201 8 201 7 Accounts receivable - current $ 1,587,817 $ 2,889,731 Accounts receivable - non current 1,720,000 1,760,000 3,307,817 4,649,731 Allowance for doubtful accounts - current (13,785 ) (13,785 ) Allowance for doubtful accounts - non current (1,720,000 ) (1,000,000 ) (1,733,785 ) (1,013,785 ) Accounts receivable, net of allowances for doubtful accounts $ 1,574,032 $ 3,635,946 |
Summary of Valuation Allowance [Table Text Block] | Balance at Beginning of Year Charged to Costs and Expenses Deductions From Reserves Balance at End of Year Year Ended December 31, 201 8 Allowance for Doubtful Accounts $ 1,013,785 $ 720,000 $ - $ 1,733,785 Year Ended December 31, 201 7 Allowance for Doubtful Accounts $ 513,785 $ 500,000 $ - $ 1,013,785 |
Useful Lives of Property Plan and Equipment [Table Text Block] | <table cellpadding="0pt" cellspacing="0pt" style="text-indent: 0px; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin: 0pt; min-; min-width: 700px;"> <tr style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <td style="vertical-align: bottom; width: 84.8%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"> </div> </td> <td style="vertical-align: bottom; width: 0.9%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"> </div> </td> <td colspan="3" style="vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); width: 13.8%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Years</div> </td> <td style="vertical-align: bottom; width: 0.5%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"> </div> </td> </tr> <tr style="background-color: rgb(204, 238, 255); font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <td style="vertical-align: bottom; width: 84.8%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><div style="display: inline; font-style: italic;">Equipment and leasehold improvements</div></div> </td> <td style="vertical-align: bottom; width: 0.9%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"> </div> </td> <td style="vertical-align: bottom; width: 5.9%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><div style="display: inline; font-style: italic;"> </div></div> </td> <td style="vertical-align: bottom; width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><div style="display: inline; font-style: italic;"> </div></div> </td> <td style="vertical-align: bottom; width: 6.9%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"> </div> </td> <td style="vertical-align: bottom; width: 0.5%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><div style="display: inline; font-style: italic;"> </div></div> </td> </tr> <tr style="background-color: rgb(255, 255, 255); font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <td style="vertical-align: bottom; width: 84.8%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Equipment (years)</div> </td> <td style="vertical-align: bottom; width: 0.9%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"> </div> </td> <td style="vertical-align: bottom; width: 5.9%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:right;">3</div> </td> <td style="vertical-align: bottom; width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">-</div> </td> <td style="vertical-align: bottom; width: 6.9%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">5</div> </td> <td style="vertical-align: bottom; width: 0.5%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"> </div> </td> </tr> <tr style="background-color: rgb(204, 238, 255); font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <td style="vertical-align: bottom; width: 84.8%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Furniture and fixtures (years)</div> </td> <td style="vertical-align: bottom; width: 0.9%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"> </div> </td> <td style="vertical-align: bottom; width: 5.9%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:right;">3</div> </td> <td style="vertical-align: bottom; width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">-</div> </td> <td style="vertical-align: bottom; width: 6.9%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">5</div> </td> <td style="vertical-align: bottom; width: 0.5%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"> </div> </td> </tr> <tr style="background-color: rgb(255, 255, 255); font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <td style="vertical-align: bottom; width: 84.8%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Software (years)</div> </td> <td style="vertical-align: bottom; width: 0.9%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"> </div> </td> <td style="vertical-align: bottom; width: 5.9%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"> </div> </td> <td style="vertical-align: bottom; width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">3</div> </td> <td style="vertical-align: bottom; width: 6.9%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:right;"> </div> </td> <td style="vertical-align: bottom; width: 0.5%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"> </div> </td> </tr> <tr style="background-color: rgb(204, 238, 255); font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <td style="vertical-align: bottom; width: 84.8%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Leasehold improvements</div> </td> <td style="vertical-align: bottom; width: 0.9%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"> </div> </td> <td colspan="3" style="vertical-align: bottom; width: 13.8%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></div></div><div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">life or lease term</div> </td> <td style="vertical-align: bottom; width: 0.5%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"> </div> </td> </tr> </table></div>" id="sjs-B6"><div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0pt" cellspacing="0pt" style="text-indent: 0px; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin: 0pt; min-; min-width: 700px;"> <tr style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <td style="vertical-align: bottom; width: 84.8%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"> </div> </td> <td style="vertical-align: bottom; width: 0.9%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"> </div> </td> <td colspan="3" style="vertical-align: bottom; border-bottom: 1px solid rgb(0, 0, 0); width: 13.8%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Years</div> </td> <td style="vertical-align: bottom; width: 0.5%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"> </div> </td> </tr> <tr style="background-color: rgb(204, 238, 255); font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <td style="vertical-align: bottom; width: 84.8%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><div style="display: inline; font-style: italic;">Equipment and leasehold improvements</div></div> </td> <td style="vertical-align: bottom; width: 0.9%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"> </div> </td> <td style="vertical-align: bottom; width: 5.9%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><div style="display: inline; font-style: italic;"> </div></div> </td> <td style="vertical-align: bottom; width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><div style="display: inline; font-style: italic;"> </div></div> </td> <td style="vertical-align: bottom; width: 6.9%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"> </div> </td> <td style="vertical-align: bottom; width: 0.5%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><div style="display: inline; font-style: italic;"> </div></div> </td> </tr> <tr style="background-color: rgb(255, 255, 255); font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <td style="vertical-align: bottom; width: 84.8%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Equipment (years)</div> </td> <td style="vertical-align: bottom; width: 0.9%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"> </div> </td> <td style="vertical-align: bottom; width: 5.9%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:right;">3</div> </td> <td style="vertical-align: bottom; width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">-</div> </td> <td style="vertical-align: bottom; width: 6.9%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">5</div> </td> <td style="vertical-align: bottom; width: 0.5%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"> </div> </td> </tr> <tr style="background-color: rgb(204, 238, 255); font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <td style="vertical-align: bottom; width: 84.8%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Furniture and fixtures (years)</div> </td> <td style="vertical-align: bottom; width: 0.9%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"> </div> </td> <td style="vertical-align: bottom; width: 5.9%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:right;">3</div> </td> <td style="vertical-align: bottom; width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">-</div> </td> <td style="vertical-align: bottom; width: 6.9%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">5</div> </td> <td style="vertical-align: bottom; width: 0.5%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"> </div> </td> </tr> <tr style="background-color: rgb(255, 255, 255); font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <td style="vertical-align: bottom; width: 84.8%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Software (years)</div> </td> <td style="vertical-align: bottom; width: 0.9%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"> </div> </td> <td style="vertical-align: bottom; width: 5.9%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"> </div> </td> <td style="vertical-align: bottom; width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">3</div> </td> <td style="vertical-align: bottom; width: 6.9%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:right;"> </div> </td> <td style="vertical-align: bottom; width: 0.5%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"> </div> </td> </tr> <tr style="background-color: rgb(204, 238, 255); font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <td style="vertical-align: bottom; width: 84.8%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Leasehold improvements</div> </td> <td style="vertical-align: bottom; width: 0.9%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"> </div> </td> <td colspan="3" style="vertical-align: bottom; width: 13.8%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></div></div><div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">life or lease term</div> </td> <td style="vertical-align: bottom; width: 0.5%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"> </div> </td> </tr> </table></div> |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | Year ended December 31, 201 8 201 7 Selling, general and administrative $ 855,125 $ 864,036 Research, development and engineering 125,099 108,728 $ 980,224 $ 972,764 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Year ended December 31, 201 8 201 7 Weighted average Risk free interest rate 2.70 % 1.92 % Expected life of options (in years) 4.50 4.51 Expected dividends 0 % 0 % Weighted average Volatility of stock price 143 % 138 % |
Note B - Revenue From Contrac_2
Note B - Revenue From Contracts With Customers (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | North America South America EMEA* Asia December 31, 2018 License fees $ 318,271 $ 32,000 $ 278,516 $ 1,111,110 $ 1,739,897 Hardware 439,480 53,200 477,674 321,715 1,292,069 Support and Maintenance 805,800 665 60,820 27,321 894,606 Professional services 115,970 - 2,000 - 117,970 Total Revenues $ 1,679,521 $ 85,865 $ 819,010 $ 1,460,146 $ 4,044,542 North America South America EMEA* Asia December 31, 2017 License fees $ 3,104,509 $ 583 $ 4,279 $ 111,000 $ 3,220,371 Hardware 1,190,500 2,341 8,252 688,330 1,889,423 Support and Maintenance 458,340 2,364 37,907 2,367 500,978 Professional services 686,812 - - 5,400 692,212 Total Revenues $ 5,440,161 $ 5,288 $ 50,438 $ 807,097 $ 6,302,984 |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | As reported - December 31, 2017 Adjustments As adjusted - January 1, 2018 Capitalized contract assets $ - $ 240,017 $ 240,017 Total assets $ 16,078,822 $ 240,017 $ 16,318,839 Accumulated deficit $ (67,076,492 ) $ 240,017 $ (66,836,475 ) Total Stockholders’ Equity $ 13,753,295 $ 240,017 $ 13,993,312 Total Liabilities and Stockholders’ Equity $ 16,078,822 $ 240,017 $ 16,318,839 As of December 31, 2018 As reported Pro-forma Increase (decrease) Consolidated balance sheet data: Capitalized contract costs, net $ 319,199 $ - $ (319,199 ) Year Ended December 31, 2018 As reported Pro-forma Increase (decrease) Consolidated statement of operations data: Selling, general and administrative expenses 5,333,906 5,413,088 79,182 Net loss (6,868,875 ) (6,948,057 ) (79,182 ) Net loss available to common stockholders (8,495,874 ) (8,575,056 ) (79,182 ) Basic & Diluted Loss per Common Share (0.73 ) (0.74 ) 0.00 Year Ended December 31, 2018 As reported Pro-forma Increase (decrease) Consolidated statement of cash flow data: Net loss (6,868,875 ) (6,948,057 ) (79,182 ) Change in contract assets (79,182 ) - 79,182 Net cash used by operating activities (1,613,475 ) (1,613,475 ) - |
Note C - Factoring (Tables)
Note C - Factoring (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | December 31, 201 8 201 7 Accounts receivable - current $ 1,587,817 $ 2,889,731 Accounts receivable - non current 1,720,000 1,760,000 3,307,817 4,649,731 Allowance for doubtful accounts - current (13,785 ) (13,785 ) Allowance for doubtful accounts - non current (1,720,000 ) (1,000,000 ) (1,733,785 ) (1,013,785 ) Accounts receivable, net of allowances for doubtful accounts $ 1,574,032 $ 3,635,946 |
Factoring Fees [Table Text Block] | <table border="0" cellpadding="0" cellspacing="0" style="; font-size: 10pt; font-family: "Times New Roman", Times, serif; text-indent: 0px; min-; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td colspan="6" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Years Ended December 31,</div></div></div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td> </tr> <tr style="vertical-align: bottom;"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">201</div><div style="display: inline; font-weight: bold;">8</div></div></div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">201</div><div style="display: inline; font-weight: bold;">7</div></div></div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td> </tr> <tr style="vertical-align: bottom;"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; width: 70%;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Factoring fees</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">186,845</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">224,142</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> </table></div>" id="sjs-B5"><div style="display: inline; font-family: times new roman; font-size: 10pt"><table border="0" cellpadding="0" cellspacing="0" style="; font-size: 10pt; font-family: "Times New Roman", Times, serif; text-indent: 0px; min-; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td colspan="6" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Years Ended December 31,</div></div></div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td> </tr> <tr style="vertical-align: bottom;"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">201</div><div style="display: inline; font-weight: bold;">8</div></div></div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">201</div><div style="display: inline; font-weight: bold;">7</div></div></div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td> </tr> <tr style="vertical-align: bottom;"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; width: 70%;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Factoring fees</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">186,845</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">224,142</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> </table></div> |
Factored Accounts Receivable [Member] | |
Notes Tables | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Original Invoice Value Factored Amount Factored Balance due Year Ended December 31, 201 8 Factored accounts receivable $ 221,120 $ 164,438 $ 56,682 Year Ended December 31, 201 7 Factored accounts receivable $ 423,349 $ 313,484 $ 109,865 |
Note E - Concentration of Risk
Note E - Concentration of Risk (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block] | Years Ended December 31, 201 8 201 7 Customer A 27 % * Customer B 14 % 54 % Customer C 13 % * |
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | As of December 31, 201 8 201 7 Customer A 70 % * Customer B * 87 % |
Note F - Inventory (Tables)
Note F - Inventory (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | 201 8 201 7 Current Finished goods 496,358 487,858 Fabricated assemblies 502,471 458,989 Total current inventory $ 998,829 $ 946,847 |
Note G - Resalable Software L_2
Note G - Resalable Software Licenses Rights (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Software License Rights [Table Text Block] | 201 8 201 7 Current software license rights $ 1,125,000 $ 2,640,000 Non-current software license rights 6,790,610 7,933,808 Total software license rights $ 7,915,610 $ 10,573,808 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Years ending December 31 2019 1,125,000 * 2020 1,114,500 2021 1,114,500 2022 1,114,500 2023 1,114,500 Thereafter 2,332,610 |
Note H - Equipment and Leaseh_2
Note H - Equipment and Leasehold Improvements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | 201 8 201 7 Equipment $ 619,533 $ 567,473 Furniture and fixtures 164,079 164,079 Software 32,045 32,045 Leasehold improvements 23,403 23,403 839,060 787,000 Less accumulated depreciation and amortization (690,452 ) (605,835 ) Total $ 148,608 $ 181,165 |
Note I - Intangible Assets (Tab
Note I - Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | 201 8 201 7 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Patents and patents pending $ 378,344 $ (182,438 ) $ 195,906 $ 347,946 $ (166,842 ) $ 181,104 Total $ 378,344 $ (182,438 ) $ 195,906 $ 347,946 $ (166,842 ) $ 181,104 |
Note J - Accrued Liabilities (T
Note J - Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | 201 8 201 7 Compensation $ 224,135 $ 341,884 Compensated absences 154,169 164,132 Accrued legal and accounting fees 77,133 85,633 Sales tax payable 9,436 5,614 Factoring fees 19,000 32,357 Other 64,359 58,403 Total $ 548,232 $ 688,023 |
Note M - Commitments and Cont_2
Note M - Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Years ending December 31, 2019 192,000 2020 156,000 2021 127,000 2022 131,000 2023 89,000 $ 695,000 |
Note N - Equity (Tables)
Note N - Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Schedule of Preferred Stock and Accrued Dividends [Table Text Block] | Series A-1 Accrued Dividends Balance – January 1, 2017 90,000 $ 270,000 Accrual of dividends – Q1 2017 135,000 Accrual of dividends – Q2 2017 135,000 Accrual of dividends – Q3 2017 135,000 Conversion into common stock – September 2017 - (540,000 ) Conversion into common stock – October 2017 (27,404 ) - Accrual of dividends – Q4 2017 101,658 Balance – December 31, 2017 62,596 $ 236,658 Accrual of dividends – Q1 2018 93,894 Conversion into common stock – April 2018 (39,088 ) (330,552 ) Accrual of dividends – Q2 2018 (until final conversion) 25,463 Conversion into common stock – May 2018 (23,508 ) (25,463 ) Balance – December 31, 2018 - $ - Series B-1 Accrued Dividends Balance – January 1, 2017 105,000 $ 131,250 Accrual of dividends – Q1 2017 65,625 Accrual of dividends – Q2 2017 65,625 Accrual of dividends – Q3 2017 65,625 Accrual of dividends – Q4 2017 65,625 Balance – December 31, 2017 105,000 393,750 Conversion into common stock – March 2018 (60,420 ) (417,084 ) Accrual of dividends – Q1 2018 62,268 Accrual of dividends – Q2 2018 (until final conversion) 16,408 Conversion into common stock – May 2018 (44,580 ) (55,342 ) Balance – December 31, 2018 - $ - |
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block] | Total Warrants Weighted average exercise price Weighted average remaining life (in years) Aggregate intrinsic value Outstanding, as of December 31, 2016 1,260,080 3.84 2.78 Granted 138,889 3.60 Exercised — — Forfeited — — Expired — — Outstanding, as of December 31, 2017 1,398,969 3.81 2.06 — Granted 1,035,000 1.50 Increase due to trigger of anti-dilution provision feature 1,492,848 1.50 Exercised — — Forfeited — — Expired (145,841 ) 6.00 Outstanding, as of December 31, 2018 3,780,976 1.59 2.05 — Vested or expected to vest at December 31, 2018 3,780,976 1.59 2.05 — Exercisable at December 31, 2018 3,780,976 1.59 2.05 — |
Note O - Stock Options (Tables)
Note O - Stock Options (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Share-based Compensation, Stock Options, Activity [Table Text Block] | Number of Options Weighted average Weighted average remaining Aggregate 2004 Plan 2015 Plan Non Plan Total exercise price life (in years) intrinsic value Outstanding, as of December 31, 2016 69,380 25,003 247,280 341,663 $ 3.99 Granted — 64,167 1,170,000 1,234,167 2.69 Exercised — — (4,167 ) (4,167 ) 2.16 Forfeited — (7,084 ) (65,140 ) (72,224 ) 2.62 Expired (17,084 ) — (4,862 ) (21,946 ) 8.86 Outstanding, as of December 31, 2017 52,296 82,086 1,343,111 1,477,493 $ 2.91 5.64 $ 0 Granted — 351,918 — 351,918 1.97 Exercised — — — — — Forfeited — (38,613 ) (111,253 ) (149,866 ) 2.63 Expired (18,961 ) (13,473 ) (59,097 ) (91,531 ) 3.03 Outstanding, as of December 31, 2018 33,335 3 81 ,918 1,1 72 ,761 1, 588,014 $ 2. 7 2 5.00 $ 0 Vested or expected to vest at December 31, 2018 1, 321,981 $ 2. 79 4. 8 3 $ 0 Exercisable at December 31, 2018 593,573 $ 3. 17 3.94 $ 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable [Table Text Block] | Options Outstanding Options Exercisable Range of exercise prices Number of shares Weighted average exercise price Weighted average remaining life (in years) Number exercisable Weighted average exercise price $ 1.83 - 2.50 413,843 $ 2.01 5.88 81,230 $ 2.15 2.51 - 3.50 1,000,415 2.69 5.23 338,587 2.69 3.51 - 4.92 173,756 4.58 1.76 173,756 4.58 $ 1.83 - 4.92 1,588,014 593,573 |
Note P - Income Taxes (Tables)
Note P - Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | 201 8 201 7 Accrued compensation $ 91,000 $ 118,000 Accounts receivable allowance 474,000 277,000 Stock-based compensation 644,000 387,000 Basis differences in fixed assets (13,000 ) (18,000 ) Basis differences in intangible assets 50,000 46,000 Net operating loss and credit carryforwards 12,735,000 12,052,000 Valuation allowances (13,981,000 ) (12,862,000 ) $ — $ — |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | 201 8 201 7 Federal statutory income tax rate 21 % 34 % Permanent differences — — Change in tax laws/tax rate — (13 ) Effect of net operating loss (21 ) (21 ) Effective tax rate — % — % |
Note R - Earnings Per Share (_2
Note R - Earnings Per Share (EPS) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | 201 8 201 7 Basic Numerator: Loss from continuing operations $ (6,868,875 ) $ (4,275,338 ) Deemed dividend from trigger of anti-dilution provision feature (1,428,966 ) - Convertible preferred stock dividends (198,033 ) (769,158 ) Net loss available to common stockholders (basic and diluted EPS) $ (8,495,874 ) $ (5,044,496 ) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | Years ended December 31, 201 8 201 7 Preferred stock 1,426,756 5,264,422 Stock options 83 15,529 Warrants 697,879 2,109 Potentially dilutive securities 2,124,718 5,282,060 Years ended December 31, 201 8 201 7 Stock options 1,583,014 1,390,428 Warrants 186,806 1,351,052 Total 1,769,820 2,741,480 |
Note A - The Company and Summ_3
Note A - The Company and Summary of Significant Accounting Policies (Details Textual) - USD ($) | 12 Months Ended | 24 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2016 | |
Retained Earnings (Accumulated Deficit), Ending Balance | $ (75,134,316) | $ (67,076,492) | $ (75,134,316) | $ (66,836,475) | |
Cash and Cash Equivalents, at Carrying Value, Ending Balance | 323,943 | 288,721 | $ 323,943 | $ 1,061,307 | |
Operational Costs Per Month | $ 537,000 | ||||
Capitalized Contract Cost, Amortization Period | 4 years | 4 years | |||
Allowance for Doubtful Accounts Receivable, Noncurrent | $ 1,720,000 | $ 1,000,000 | $ 1,720,000 | ||
Percentage of Remaining Balance Owned Reserved | 100.00% | 58.00% | 58.00% | ||
Asset Impairment Charges, Total | $ 0 | $ 0 | |||
Advertising Expense | $ 309,000 | $ 386,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 351,918 | 1,234,167 | |||
Minimum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||||
Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | ||||
Licensing Agreements [Member] | |||||
Finite-Lived Intangible Asset, Useful Life | 10 years |
Note A - The Company and Summ_4
Note A - The Company and Summary of Significant Accounting Policies - Summary of Accounts Receivable (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts receivable - current | $ 1,587,817 | $ 2,889,731 |
Accounts receivable - non current | 1,720,000 | 1,760,000 |
3,307,817 | 4,649,731 | |
Allowance for doubtful accounts - current | (13,785) | (13,785) |
Allowance for doubtful accounts - non current | (1,720,000) | (1,000,000) |
(1,733,785) | (1,013,785) | |
Accounts receivable, net of allowances for doubtful accounts | $ 1,574,032 | $ 3,635,946 |
Note A - The Company and Summ_5
Note A - The Company and Summary of Significant Accounting Policies - Allowance for Doubtful Accounts (Details) - SEC Schedule, 12-09, Allowance, Credit Loss [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Balance at beginning of year | $ 1,013,785 | $ 513,785 |
Charges to costs and expenses | 720,000 | 500,000 |
Deductions from reserves | ||
Balance at end of year | $ 1,733,785 | $ 1,013,785 |
Note A - The Company and Summ_6
Note A - The Company and Summary of Significant Accounting Policies - Estimated Useful Lives for Depreciation and Amortization (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Equipment [Member] | Minimum [Member] | |
Property, Plant, and Equipment (Year) | 3 years |
Equipment [Member] | Maximum [Member] | |
Property, Plant, and Equipment (Year) | 5 years |
Furniture and Fixtures [Member] | Minimum [Member] | |
Property, Plant, and Equipment (Year) | 3 years |
Furniture and Fixtures [Member] | Maximum [Member] | |
Property, Plant, and Equipment (Year) | 5 years |
Software Development [Member] | |
Property, Plant, and Equipment (Year) | 3 years |
Leasehold Improvements [Member] | |
Property, Plant, and Equipment, useful life | life or lease term |
Note A - The Company and Summ_7
Note A - The Company and Summary of Significant Accounting Policies - Share-based Compensation Expenses for Continuing Operations (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based compensation expense | $ 980,224 | $ 972,764 |
Selling, General and Administrative Expenses [Member] | ||
Share-based compensation expense | 855,125 | 864,036 |
Research and Development Expense [Member] | ||
Share-based compensation expense | $ 125,099 | $ 108,728 |
Note A - The Company and Summ_8
Note A - The Company and Summary of Significant Accounting Policies - Valuation Assumptions for Stock Options (Details) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Weighted average Risk free interest rate | 2.70% | 1.92% |
Expected life of options (Year) | 4 years 182 days | 4 years 186 days |
Expected dividends | 0.00% | 0.00% |
Weighted average Volatility of stock price | 143.00% | 138.00% |
Note B - Revenue From Contrac_3
Note B - Revenue From Contracts With Customers (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Contract with Customer, Liability, Revenue Recognized | $ 382,000 | $ 0 |
Contract with Customer, Liability, Total | $ 196,609 | $ 507,866 |
Note B - Revenue From Contrac_4
Note B - Revenue From Contracts With Customers - Disaggregation of Revenue (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | |||
Revenue | $ 4,044,542 | $ 6,302,984 | ||
North America [Member] | ||||
Revenue | 1,679,521 | 5,440,161 | ||
South America [Member] | ||||
Revenue | 85,865 | 5,288 | ||
EMEA [Member] | ||||
Revenue | [1] | 819,010 | 50,438 | |
Asia [Member] | ||||
Revenue | 1,460,146 | 807,097 | ||
License [Member] | ||||
Revenue | 1,739,897 | 3,220,371 | ||
License [Member] | North America [Member] | ||||
Revenue | 318,271 | 3,104,509 | ||
License [Member] | South America [Member] | ||||
Revenue | 32,000 | 583 | ||
License [Member] | EMEA [Member] | ||||
Revenue | 278,516 | [1] | 4,279 | |
License [Member] | Asia [Member] | ||||
Revenue | 1,111,110 | 111,000 | ||
Hardware [Member] | ||||
Revenue | 1,292,069 | 1,889,423 | ||
Hardware [Member] | North America [Member] | ||||
Revenue | 439,480 | 1,190,500 | ||
Hardware [Member] | South America [Member] | ||||
Revenue | 53,200 | 2,341 | ||
Hardware [Member] | EMEA [Member] | ||||
Revenue | [1] | 477,674 | 8,252 | |
Hardware [Member] | Asia [Member] | ||||
Revenue | 321,715 | 688,330 | ||
Maintenance [Member] | ||||
Revenue | 894,606 | 500,978 | ||
Maintenance [Member] | North America [Member] | ||||
Revenue | 805,800 | 458,340 | ||
Maintenance [Member] | South America [Member] | ||||
Revenue | 665 | 2,364 | ||
Maintenance [Member] | EMEA [Member] | ||||
Revenue | [1] | 60,820 | 37,907 | |
Maintenance [Member] | Asia [Member] | ||||
Revenue | 27,321 | 2,367 | ||
Professional Services [Member] | ||||
Revenue | 117,970 | 692,212 | ||
Professional Services [Member] | North America [Member] | ||||
Revenue | 115,970 | 686,812 | ||
Professional Services [Member] | South America [Member] | ||||
Revenue | ||||
Professional Services [Member] | EMEA [Member] | ||||
Revenue | 2,000 | [1] | ||
Professional Services [Member] | Asia [Member] | ||||
Revenue | $ 5,400 | |||
[1] | EMEA - Europe, Middle East, Africa |
Note B - Revenue From Contrac_5
Note B - Revenue From Contracts With Customers - Adoption of ASC 606 (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2018 | Dec. 31, 2016 | |
Capitalized contract assets | $ 319,199 | $ 240,017 | ||
Total assets | 11,692,332 | 16,078,822 | 16,318,839 | |
Accumulated deficit | (75,134,316) | (67,076,492) | (66,836,475) | |
TOTAL STOCKHOLDERS’ EQUITY | 10,466,222 | 13,753,295 | 13,993,312 | $ 15,452,888 |
Total Liabilities and Stockholders’ Equity | 11,692,332 | 16,078,822 | 16,318,839 | |
Selling, general and administrative expenses | 5,333,906 | 5,676,323 | ||
Loss from continuing operations | (6,868,875) | (4,275,338) | ||
Net loss available to common stockholders (basic and diluted EPS) | $ (8,495,874) | $ (5,044,496) | ||
Basic & Diluted Loss per Common Share (in dollars per share) | $ (0.73) | $ (0.76) | ||
Change in contract assets | $ (79,182) | |||
Net cash used by operating activities | (1,613,475) | $ (2,465,462) | ||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||||
Capitalized contract assets | ||||
Selling, general and administrative expenses | 5,413,088 | |||
Loss from continuing operations | (6,948,057) | |||
Net loss available to common stockholders (basic and diluted EPS) | $ (8,575,056) | |||
Basic & Diluted Loss per Common Share (in dollars per share) | $ (0.74) | |||
Change in contract assets | ||||
Net cash used by operating activities | (1,613,475) | |||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ||||
Capitalized contract assets | (319,199) | |||
Selling, general and administrative expenses | 79,182 | |||
Loss from continuing operations | (79,182) | |||
Net loss available to common stockholders (basic and diluted EPS) | $ (79,182) | |||
Basic & Diluted Loss per Common Share (in dollars per share) | $ 0 | |||
Change in contract assets | $ 79,182 | |||
Net cash used by operating activities | ||||
Accounting Standards Update 2014-09 [Member] | ||||
Capitalized contract assets | 240,017 | |||
Total assets | 240,017 | |||
Accumulated deficit | 240,017 | |||
TOTAL STOCKHOLDERS’ EQUITY | 240,017 | |||
Total Liabilities and Stockholders’ Equity | $ 240,017 |
Note C - Factoring (Details Tex
Note C - Factoring (Details Textual) | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Factoring Arrangement, Minimum Amount of Accounts Receivable Per Quarter | $ 150,000 |
Minimum [Member] | |
Factoring Fees Percent | 2.75% |
Maximum [Member] | |
Factoring Fees Percent | 15.00% |
Geographic Distribution, Foreign [Member] | |
Percentage Of Accounts Receivable Remitted By Factor | 35.00% |
Geographic Distribution, Domestic [Member] | |
Percentage Of Accounts Receivable Remitted By Factor | 75.00% |
Note C - Factoring - Due From F
Note C - Factoring - Due From Factor (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Original invoice value | $ 221,120 | $ 423,349 |
Factored amount | 164,438 | 313,484 |
Factored balance due | $ 56,682 | $ 109,865 |
Note C - Factoring - Fees (Deta
Note C - Factoring - Fees (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Factoring fees | $ 186,845 | $ 224,142 |
Note E - Concentration of Ris_2
Note E - Concentration of Risk (Details Textual) - USD ($) | 12 Months Ended | 24 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | |
Cash, Uninsured Amount | $ 0 | $ 0 | $ 0 |
Accounts Receivable, Net, Total | 1,574,032 | 3,635,946 | 1,574,032 |
Allowance for Doubtful Accounts Receivable, Noncurrent | $ 1,720,000 | $ 1,000,000 | $ 1,720,000 |
Percentage of Remaining Balance Owned Reserved | 100.00% | 58.00% | 58.00% |
Customer A [Member] | |||
Accounts Receivable, Net, Total | $ 1,720,000 | $ 1,720,000 |
Note E - Concentration of Ris_3
Note E - Concentration of Risk - Revenue Concentration Risk by Major Customer (Details) - Sales Revenue, Net [Member] - Customer Concentration Risk [Member] | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Customer A [Member] | ||
Percentage of revenues | 27.00% | |
Customer B [Member] | ||
Percentage of revenues | 14.00% | 54.00% |
Customer C [Member] | ||
Percentage of revenues | 13.00% |
Note E - Concentration of Ris_4
Note E - Concentration of Risk - Accounts Receivable Concentration Risk by Major Customer (Details) - Accounts Receivable [Member] - Customer Concentration Risk [Member] | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Customer A [Member] | ||
Percentage of revenues | 70.00% | |
Customer B [Member] | ||
Percentage of revenues | 87.00% |
Note F - Inventory - Components
Note F - Inventory - Components of Inventory (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Finished goods | $ 496,358 | $ 487,858 |
Fabricated assemblies | 502,471 | 458,989 |
Total current inventory | $ 998,829 | $ 946,847 |
Note G - Resalable Software L_3
Note G - Resalable Software Licenses Rights (Details Textual) - USD ($) | Dec. 31, 2015 | Nov. 11, 2015 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 |
Payments to Acquire Intangible Assets | $ 30,398 | $ 60,698 | |||
Software License Rights, Current | 1,125,000 | 2,640,000 | $ 1,125,000 | ||
Amortization of Intangible Assets, Total | 15,596 | 13,726 | |||
Software License Rights | 7,915,610 | $ 10,573,808 | 7,915,610 | ||
Software License Rights [Member] | |||||
Payments to Acquire Intangible Assets | $ 12,000,000 | ||||
Software License Rights, Current | $ 1,125,000 | ||||
Finite-Lived Intangible Asset, Useful Life | 10 years | ||||
Amortization of Intangible Assets, Total | 2,640,000 | $ 1,556,687 | 4,198,596 | ||
Software License Rights | 7,801,404 | 7,801,404 | |||
The 2015 Software License [Member] | |||||
Amortization of Intangible Assets, Total | 18,198 | $ 35,916 | |||
Software License Rights | 114,206 | $ 114,206 | |||
Payments to Acquire Software | $ 180,000 | ||||
Amortization of Intangible Assets, Credits | 14,400 | ||||
Cumulative Amount of Amortization Expense, Net of Credits | $ 65,794 |
Note G - Resalable Software L_4
Note G - Resalable Software License Rights - Summary of Software License Rights (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Resalable software license rights | $ 1,125,000 | $ 2,640,000 |
Resalable software license rights, net of current portion | 6,790,610 | 7,933,808 |
Total software license rights | $ 7,915,610 | $ 10,573,808 |
Note G - Resalable Software L_5
Note G - Resalable Software Licenses Rights - Amortization Expense (Details) | Dec. 31, 2018USD ($) | |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | $ 13,000 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 13,000 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 13,000 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 13,000 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 13,000 | |
Licensing Agreements [Member] | ||
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 1,125,000 | [1] |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 1,114,500 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 1,114,500 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 1,114,500 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 1,114,500 | |
Thereafter | $ 2,332,610 | |
[1] | Includes increase vs. straight line due to expected deployment of second tranche of licenses from fourth quarter 2018 order. |
Note H - Equipment and Leaseh_3
Note H - Equipment and Leasehold Improvements (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Selling, General and Administrative Expenses [Member] | ||
Depreciation, Depletion and Amortization, Nonproduction, Total | $ 84,617 | $ 52,709 |
Note H - Equipment and Leaseh_4
Note H - Equipment and Leasehold Improvements - Summary of Equipment and Leasehold Improvements (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Property, plant, and equipment, gross | $ 839,060 | $ 787,000 |
Less accumulated depreciation and amortization | (690,452) | (605,835) |
Total | 148,608 | 181,165 |
Equipment [Member] | ||
Property, plant, and equipment, gross | 619,533 | 567,473 |
Furniture and Fixtures [Member] | ||
Property, plant, and equipment, gross | 164,079 | 164,079 |
Software Development [Member] | ||
Property, plant, and equipment, gross | 32,045 | 32,045 |
Leasehold Improvements [Member] | ||
Property, plant, and equipment, gross | $ 23,403 | $ 23,403 |
Note I - Intangible Assets (Det
Note I - Intangible Assets (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Amortization of Intangible Assets, Total | $ 15,596 | $ 13,726 |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 13,000 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 13,000 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 13,000 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 13,000 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 13,000 | |
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 131,000 | |
Research, Development, and Engineering Expense [Member] | ||
Amortization of Intangible Assets, Total | $ 15,596 | $ 13,726 |
Note I - Intangible Assets - Su
Note I - Intangible Assets - Summary of Intangible Assets (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Gross carrying amount | $ 378,344 | $ 347,946 |
Accumulated amortization | (182,438) | (166,842) |
Net carrying amount | 195,906 | 181,104 |
Patents [Member] | ||
Gross carrying amount | 378,344 | 347,946 |
Accumulated amortization | (182,438) | (166,842) |
Net carrying amount | $ 195,906 | $ 181,104 |
Note J - Accrued Liabilities -
Note J - Accrued Liabilities - Summary of Accrued Liabilities (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Compensation | $ 224,135 | $ 341,884 |
Compensated absences | 154,169 | 164,132 |
Accrued legal and accounting fees | 77,133 | 85,633 |
Sales tax payable | 9,436 | 5,614 |
Factoring fees | 19,000 | 32,357 |
Other | 64,359 | 58,403 |
Total | $ 548,232 | $ 688,023 |
Note K - Related Party (Details
Note K - Related Party (Details Textual) - USD ($) | May 31, 2018 | Apr. 03, 2018 | Mar. 23, 2018 | Oct. 17, 2017 | Sep. 22, 2017 | Aug. 07, 2017 | Apr. 28, 2017 | May 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Nov. 11, 2015 |
Stock Issued During Period, Shares, New Issues | 90,000 | ||||||||||
Share Price | $ 0.75 | ||||||||||
Proceeds from Issuance of Common Stock | $ 1,875,100 | $ 2,000,000 | |||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 3.60 | ||||||||||
Conversion of Dividends Payable, Shares Issued | 150,000 | ||||||||||
Maximum Ownership as a Result of Conversion | 35.00% | 9.99% | |||||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 1,794,190 | ||||||||||
Conversion of Series A-1 Shares into Common Stock [Member] | |||||||||||
Conversion of Stock, Shares Converted | 23,508 | 39,088 | 27,404 | ||||||||
Preferred Stock, Conversion Price | $ 3.60 | $ 3.60 | $ 3.60 | ||||||||
Conversion of Stock, Shares Issued | 761,222 | 2,500,000 | |||||||||
Conversion of Dividends Payable on Series A-1 Preferred Stock to Common Stock [Member] | |||||||||||
Conversion of Dividends Payable, Amount Converted | $ 25,463 | $ 330,552 | $ 896,015 | $ 356,015 | $ 540,000 | ||||||
Conversion of Dividends Payable, Shares Issued | 248,893 | ||||||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 660,073 | 1,177,598 | |||||||||
Director and Executive Officer [member] | |||||||||||
Stock Issued During Period, Shares, New Issues | 277,778 | 277,778 | |||||||||
Share Price | $ 3.60 | ||||||||||
Proceeds from Issuance of Common Stock | $ 1,000,000 | $ 1,000,000 | |||||||||
Stock and Warrant Issued During Period, Shares | 427,778 | ||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 138,889 | ||||||||||
Stock and Warrants Issued During Period, Vaue | $ 1,540,000 | ||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 3.60 | ||||||||||
Conversion of Dividends Payable, Amount Converted | $ 540,000 | ||||||||||
Director [Member] | |||||||||||
Software License, Total | $ 12,000,000 | ||||||||||
Percentage of Benefit Ownership | 31.40% |
Note L - Deferred Revenue (Deta
Note L - Deferred Revenue (Details Textual) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Maintenance Contracts [Member] | ||
Deferred Revenue, Current | $ 197,000 | $ 508,000 |
Note M - Commitments and Cont_3
Note M - Commitments and Contingencies (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Selling, General and Administrative Expenses [Member] | ||
Operating Leases, Rent Expense, Total | $ 234,000 | $ 221,000 |
Note M - Commitments and Cont_4
Note M - Commitments and Contingencies - Future Minimum Rental Commitments of Non-cancelable Operating Leases (Details) | Dec. 31, 2018USD ($) |
2019 | $ 192,000 |
2020 | 156,000 |
2021 | 127,000 |
2022 | 131,000 |
2023 | 89,000 |
$ 695,000 |
Note N - Equity (Details Textua
Note N - Equity (Details Textual) - USD ($) | Aug. 24, 2018 | Aug. 22, 2018 | May 31, 2018 | May 23, 2018 | Apr. 03, 2018 | Mar. 23, 2018 | Oct. 17, 2017 | Sep. 22, 2017 | Aug. 07, 2017 | Nov. 11, 2015 | Oct. 29, 2015 | Sep. 23, 2015 | Nov. 13, 2014 | May 31, 2018 | Apr. 30, 2018 | Mar. 31, 2018 | Oct. 31, 2017 | Sep. 30, 2017 | May 23, 2018 | May 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2015 | Sep. 30, 2018 |
Preferred Stock, Shares Authorized | 5,000,000 | |||||||||||||||||||||||
Preferred Stock, Par or Stated Value Per Share | $ 0.0001 | |||||||||||||||||||||||
Stock Issued During Period, Shares, New Issues | 90,000 | |||||||||||||||||||||||
Share Price | $ 0.75 | |||||||||||||||||||||||
Maximum Ownership as a Result of Conversion | 35.00% | 9.99% | ||||||||||||||||||||||
Conversion of Dividends Payable, Shares Issued | 150,000 | |||||||||||||||||||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 1,794,190 | |||||||||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 3.60 | |||||||||||||||||||||||
Payments of Stock Issuance Costs | $ 143,945 | $ 80,366 | ||||||||||||||||||||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures, Total | 1,610 | |||||||||||||||||||||||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures, Total | $ 37,532 | $ 32,030 | ||||||||||||||||||||||
Stock Issued During Period, Value, Issued for Services | $ 354,585 | |||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 0 | 4,167 | ||||||||||||||||||||||
Promissory Note [Member] | ||||||||||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 69,445 | |||||||||||||||||||||||
Consultancy Firms [Member] | ||||||||||||||||||||||||
Stock Issued During Period, Shares, Issued for Services | 117,849 | |||||||||||||||||||||||
Stock Issued During Period, Value, Issued for Services | $ 354,585 | |||||||||||||||||||||||
Common Stock [Member] | ||||||||||||||||||||||||
Stock Issued During Period, Shares, New Issues | 1,380,000 | 555,556 | ||||||||||||||||||||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures, Total | 20,976 | 11,244 | ||||||||||||||||||||||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures, Total | $ 2 | $ 1 | ||||||||||||||||||||||
Stock Issued During Period, Shares, Issued for Services | 117,849 | |||||||||||||||||||||||
Stock Issued During Period, Value, Issued for Services | $ 12 | |||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 1,610 | |||||||||||||||||||||||
Director [Member] | ||||||||||||||||||||||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures, Total | 11,244 | |||||||||||||||||||||||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures, Total | $ 37,532 | $ 32,030 | ||||||||||||||||||||||
Director [Member] | Common Stock [Member] | ||||||||||||||||||||||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures, Total | 20,976 | |||||||||||||||||||||||
Securities Purchase Agreement Warrants [Member] | ||||||||||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 1.50 | |||||||||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 2,392,502 | |||||||||||||||||||||||
Fair Value Adjustment of Warrants | $ 1,288,139 | |||||||||||||||||||||||
September 2015 Warrants [Member] | ||||||||||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 1.50 | |||||||||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 166,668 | |||||||||||||||||||||||
Fair Value Adjustment of Warrants | $ 140,827 | |||||||||||||||||||||||
Public Offering [Member] | ||||||||||||||||||||||||
Stock Issued During Period, Shares, New Issues | 1,380,000 | |||||||||||||||||||||||
Units Issued During Period, Units, New Issues | 1,200,000 | |||||||||||||||||||||||
Number of Common Shares Called, Per Unit | 1 | |||||||||||||||||||||||
Shares Issued, Price Per Share | $ 1.50 | |||||||||||||||||||||||
Proceeds from Issuance or Sale of Equity, Total | $ 2,070,000 | |||||||||||||||||||||||
Payments for Commissions, Percent | 7.00% | |||||||||||||||||||||||
Payments for Commissions | $ 144,900 | |||||||||||||||||||||||
Payments for Underwriting Expenses for Issuance or Sale of Equity | 50,000 | |||||||||||||||||||||||
Proceeds from Issuance or Sale of Equity, Net, Total | $ 1,875,100 | |||||||||||||||||||||||
Public Offering [Member] | August 2018 Warrants [Member] | ||||||||||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right | 0.75 | |||||||||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 1.50 | |||||||||||||||||||||||
Warrants and Rights Outstanding, Term | 5 years | |||||||||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 1,035,000 | |||||||||||||||||||||||
Over-Allotment Option [Member] | ||||||||||||||||||||||||
Stock Issued During Period, Shares, New Issues | 180,000 | |||||||||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 135,000 | |||||||||||||||||||||||
Private Investor SPA [Member] | ||||||||||||||||||||||||
Stock Issued During Period, Shares, New Issues | 664,584 | |||||||||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 3.60 | |||||||||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 996,877 | |||||||||||||||||||||||
Proceeds from Issuance of Private Placement | $ 1,595,000 | |||||||||||||||||||||||
Term Of Warrant | 5 years | |||||||||||||||||||||||
Conversion of Series A-1 Shares into Common Stock [Member] | ||||||||||||||||||||||||
Conversion of Stock, Shares Issued | 761,222 | 2,500,000 | ||||||||||||||||||||||
Conversion of Dividends Payable on Series A-1 Preferred Stock to Common Stock [Member] | ||||||||||||||||||||||||
Conversion of Dividends Payable, Shares Issued | 248,893 | |||||||||||||||||||||||
Conversion of Dividends Payable, Amount Converted | $ 25,463 | $ 330,552 | $ 896,015 | $ 356,015 | 540,000 | |||||||||||||||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 660,073 | 1,177,598 | ||||||||||||||||||||||
Conversion of Series B-1 Shares into Common Stock [Member] | ||||||||||||||||||||||||
Conversion of Stock, Shares Issued | 2,916,668 | |||||||||||||||||||||||
Conversion of Dividends Payable on Series B-1 Preferred Stock to Common Stock [Member] | ||||||||||||||||||||||||
Conversion of Dividends Payable, Shares Issued | 131,229 | |||||||||||||||||||||||
Conversion of Dividends Payable, Amount Converted | $ 472,426 | $ 472,426 | ||||||||||||||||||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 1,253,707 | |||||||||||||||||||||||
Series A-1 Convertible Preferred Stock [Member] | ||||||||||||||||||||||||
Preferred Stock, Shares Authorized | 100,000 | 100,000 | ||||||||||||||||||||||
Preferred Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 | ||||||||||||||||||||||
Stock Issued During Period, Shares, New Issues | 5,500 | 84,500 | 90,000 | |||||||||||||||||||||
Preferred Stock, Shares Outstanding, Ending Balance | 0 | 62,596 | ||||||||||||||||||||||
Share Price | $ 100 | $ 100 | ||||||||||||||||||||||
Proceeds from Issuance of Convertible Preferred Stock | $ 550,000 | $ 8,450,000 | ||||||||||||||||||||||
Initial Conversion Price | $ 3.60 | |||||||||||||||||||||||
Conversion Cap | 35.00% | |||||||||||||||||||||||
Preferred Stock, Dividend Rate, Percentage | 6.00% | |||||||||||||||||||||||
Period Preceding the Dividend Payment Date | 10 days | |||||||||||||||||||||||
Liquidation Value Per Share | $ 100 | |||||||||||||||||||||||
Conversion of Dividends Payable, Amount Converted | $ 25,463 | $ 330,552 | $ 540,000 | |||||||||||||||||||||
Preferred Stock, Shares Issued, Total | 0 | 62,596 | ||||||||||||||||||||||
Series A-1 Convertible Preferred Stock [Member] | Maximum [Member] | ||||||||||||||||||||||||
Maximum Ownership as a Result of Conversion | 9.99% | |||||||||||||||||||||||
Series B-1 Convertible Preferred Stock [Member] | ||||||||||||||||||||||||
Preferred Stock, Shares Authorized | 105,000 | 105,000 | ||||||||||||||||||||||
Preferred Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 | ||||||||||||||||||||||
Stock Issued During Period, Shares, New Issues | 105,000 | 105,000 | ||||||||||||||||||||||
Preferred Stock, Shares Outstanding, Ending Balance | 0 | 105,000 | ||||||||||||||||||||||
Share Price | $ 100 | |||||||||||||||||||||||
Proceeds from Issuance of Convertible Preferred Stock | $ 10,500,000 | |||||||||||||||||||||||
Initial Conversion Price | $ 3.60 | |||||||||||||||||||||||
Preferred Stock, Dividend Rate, Percentage | 2.50% | |||||||||||||||||||||||
Period Preceding the Dividend Payment Date | 10 days | |||||||||||||||||||||||
Liquidation Value Per Share | $ 100 | |||||||||||||||||||||||
Conversion of Dividends Payable, Amount Converted | $ 55,342 | $ 417,084 | ||||||||||||||||||||||
Equity Facility, Aggregate Sales Limitation, Percentage of Total Outstanding Share | 19.99% | |||||||||||||||||||||||
Preferred Stock, Shares Issued, Total | 0 | 105,000 | 0 | |||||||||||||||||||||
Series B-1 Convertible Preferred Stock [Member] | Maximum [Member] | ||||||||||||||||||||||||
Maximum Ownership as a Result of Conversion | 9.99% | |||||||||||||||||||||||
September 2015 Warrants [Member] | ||||||||||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 3.60 | |||||||||||||||||||||||
Term Of Warrant | 5 years |
Note N - Equity - Balances and
Note N - Equity - Balances and Conversion of Preferred Shares and Accrued Dividends (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |||||||||||
May 31, 2018 | Apr. 30, 2018 | Mar. 31, 2018 | Oct. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2016 | |
Series A-1 Convertible Preferred Stock [Member] | |||||||||||||
Balance (in shares) | 62,596 | 90,000 | |||||||||||
Conversion of preferred stock to common stock, Converted (in shares) | (23,508) | (39,088) | (27,404) | ||||||||||
Balance | $ 236,658 | $ 270,000 | |||||||||||
Accrual of dividends | $ 25,463 | $ 93,894 | $ 101,658 | $ 135,000 | $ 135,000 | $ 135,000 | |||||||
Conversion into common stock | $ (25,463) | $ (330,552) | $ (540,000) | ||||||||||
Series B-1 Convertible Preferred Stock [Member] | |||||||||||||
Balance (in shares) | 105,000 | 105,000 | |||||||||||
Conversion of preferred stock to common stock, Converted (in shares) | (44,580) | (60,420) | |||||||||||
Balance | $ 393,750 | $ 131,250 | |||||||||||
Accrual of dividends | $ 16,408 | $ 62,268 | $ 65,625 | $ 65,625 | $ 65,625 | $ 65,625 | |||||||
Conversion into common stock | $ (55,342) | $ (417,084) |
Note N - Equity - Summary of Wa
Note N - Equity - Summary of Warrant Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Total warrants (in shares) | 1,398,969 | 1,260,080 | |
Weighted average exercise price (in dollars per share) | $ 3.81 | $ 3.84 | |
Weighted average remaining contractual life (Year) | 2 years 18 days | 2 years 21 days | 2 years 284 days |
Granted (in shares) | 1,035,000 | 138,889 | |
Granted, weighted average exercise price (in dollars per share) | $ 1.50 | $ 3.60 | |
Exercised (in shares) | |||
Exercised, weighted average exercise price (in dollars per share) | |||
Forfeited (in shares) | |||
Forfeited, weighted average exercise price (in dollars per share) | |||
Expired (in shares) | (145,841) | ||
Expired, weighted average exercise price (in dollars per share) | $ 6 | ||
Total warrants (in shares) | 3,780,976 | 1,398,969 | 1,260,080 |
Weighted average exercise price (in dollars per share) | $ 1.59 | $ 3.81 | $ 3.84 |
Increase due to trigger of anti-dilution provision feature (in shares) | 1,492,848 | ||
Increase due to trigger of anti-dilution provision feature (in dollars per share) | $ 1.50 | ||
Vested or expected to vest at December 31, 2018 (in shares) | 3,780,976 | ||
Vested or expected to vest at December 31, 2018 (in dollars per share) | $ 1.59 | ||
Vested or expected to vest at December 31, 2018 (Year) | 2 years 18 days | ||
Exercisable at December 31, 2018 (in shares) | 3,780,976 | ||
Exercisable at December 31, 2018 (in dollars per share) | $ 1.59 | ||
Exercisable at December 31, 2018 (Year) | 2 years 18 days |
Note O - Stock Options (Details
Note O - Stock Options (Details Textual) - USD ($) | Jan. 27, 2016 | Oct. 12, 2004 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 5 years | 5 years 233 days | |||
Share Price | $ 0.75 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 1.53 | $ 2.32 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 0 | $ 5,667 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | $ 946,435 | $ 197,281 | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ 1,228,771 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 182 days | ||||
In The Money Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 0 | ||||
The2004 Stock Option Plan [Member] | |||||
Common Stock, Capital Shares Reserved for Future Issuance | 166,667 | ||||
The2004 Stock Option Plan [Member] | Nonstatutory Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 10 years | ||||
The2004 Stock Option Plan [Member] | Minimum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent | 85.00% | ||||
The 2015 Equity Incentive Plan [Member] | |||||
Common Stock, Capital Shares Reserved for Future Issuance | 666,667 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||||
The 2015 Equity Incentive Plan [Member] | Minimum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent | 100.00% | ||||
The 2015 Equity Incentive Plan [Member] | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent | 110.00% |
Note O - Stock Options - Option
Note O - Stock Options - Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Outstanding, weighted average exercise price (in dollars per share) | $ 2.91 | $ 3.99 |
Granted (in shares) | 351,918 | 1,234,167 |
Granted, weighted average exercise price (in dollars per share) | $ 1.97 | $ 2.69 |
Exercised (in shares) | 0 | (4,167) |
Exercised, weighted average exercise price (in dollars per share) | $ 2.16 | |
Forfeited, weighted average exercise price (in dollars per share) | 2.63 | 2.62 |
Expired, weighted average exercise price (in dollars per share) | $ 3.03 | $ 8.86 |
Outstanding, weighted average remaining life (Year) | 5 years | 5 years 233 days |
Outstanding, aggregate intrinsic value | $ 0 | $ 0 |
Outstanding, weighted average exercise price (in dollars per share) | $ 2.72 | $ 2.91 |
Vested or expected, weighted average exercise price (in dollars per share) | $ 2.79 | |
Vested or expected to vest, weighted average remaining life (Year) | 4 years 302 days | |
Vested or expected to vest, aggregate intrinsic value | $ 0 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 3.17 | |
Exercisable, weighted average remaining life (Year) | 3 years 343 days | |
Exercisable, aggregate intrinsic value | $ 0 | |
The1999 Stock Option Plan [Member] | ||
Outstanding (in shares) | 52,296 | 69,380 |
Granted (in shares) | ||
Exercised (in shares) | ||
Forfeited (in shares) | ||
Expired (in shares) | (18,961) | (17,084) |
Outstanding (in shares) | 33,335 | 52,296 |
The2004 Stock Option Plan [Member] | ||
Outstanding (in shares) | 82,086 | 25,003 |
Granted (in shares) | 351,918 | 64,167 |
Exercised (in shares) | ||
Forfeited (in shares) | (38,613) | (7,084) |
Expired (in shares) | (13,473) | |
Outstanding (in shares) | 381,918 | 82,086 |
The 2015 Equity Incentive Plan [Member] | ||
Outstanding (in shares) | 1,343,111 | 247,280 |
Granted (in shares) | 1,170,000 | |
Exercised (in shares) | (4,167) | |
Forfeited (in shares) | (111,253) | (65,140) |
Expired (in shares) | (59,097) | (4,862) |
Outstanding (in shares) | 1,172,761 | 1,343,111 |
Non Plan [Member] | ||
Outstanding (in shares) | 1,477,493 | 341,663 |
Granted (in shares) | 351,918 | 1,234,167 |
Exercised (in shares) | (4,167) | |
Forfeited (in shares) | (149,866) | (72,224) |
Expired (in shares) | (91,531) | (21,946) |
Outstanding (in shares) | 1,588,014 | 1,477,493 |
Vested or expected to vest at December 31, 2018 (in shares) | 1,321,981 | |
Exercisable at December 31, 2018 (in shares) | 593,573 |
Note O - Stock Options - Opti_2
Note O - Stock Options - Options Outstanding and Exercisable (Details) | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 3.17 |
Exercise Price Range 1 [Member] | |
Range of exercise prices, lower range (in dollars per share) | 1.83 |
Range of exercise prices, upper range (in dollars per share) | $ 2.50 |
Options outstanding (in shares) | shares | 413,843 |
Options outstanding, weighted average exercise price (in dollars per share) | $ 2.01 |
Options outstanding, weighted average remaining remaining life (Year) | 5 years 321 days |
Options exercisable (in shares) | shares | 81,230 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 2.15 |
Exercise Price Range 2 [Member] | |
Range of exercise prices, lower range (in dollars per share) | 2.51 |
Range of exercise prices, upper range (in dollars per share) | $ 3.50 |
Options outstanding (in shares) | shares | 1,000,415 |
Options outstanding, weighted average exercise price (in dollars per share) | $ 2.69 |
Options outstanding, weighted average remaining remaining life (Year) | 5 years 83 days |
Options exercisable (in shares) | shares | 338,587 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 2.69 |
Exercise Price Range 3 [Member] | |
Range of exercise prices, lower range (in dollars per share) | 3.51 |
Range of exercise prices, upper range (in dollars per share) | $ 4.92 |
Options outstanding (in shares) | shares | 173,756 |
Options outstanding, weighted average exercise price (in dollars per share) | $ 4.58 |
Options outstanding, weighted average remaining remaining life (Year) | 1 year 277 days |
Options exercisable (in shares) | shares | 173,756 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 4.58 |
Exercise Price Range 4 [Member] | |
Range of exercise prices, lower range (in dollars per share) | 1.83 |
Range of exercise prices, upper range (in dollars per share) | $ 4.92 |
Options outstanding (in shares) | shares | 1,588,014 |
Options exercisable (in shares) | shares | 593,573 |
Note P - Income Taxes (Details
Note P - Income Taxes (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Expense (Benefit), Total | $ 0 | $ 0 |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 34.00% |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued, Total | $ 0 | $ 0 |
Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | ||
Operating Loss Carryforwards, Total | $ 60,000 | |
Open Tax Year | 2015 2016 2017 2018 | |
State and Local Jurisdiction [Member] | ||
Open Tax Year | 2015 2016 2017 2018 |
Note P - Income Taxes - Compone
Note P - Income Taxes - Components of Deferred Taxes (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Accrued compensation | $ 91,000 | $ 118,000 |
Accounts receivable allowance | 474,000 | 277,000 |
Stock-based compensation | 644,000 | 387,000 |
Basis differences in fixed assets | (13,000) | (18,000) |
Basis differences in intangible assets | 50,000 | 46,000 |
Net operating loss and credit carryforwards | 12,735,000 | 12,052,000 |
Valuation allowances | $ (13,981,000) | $ (12,862,000) |
Note P - Income Taxes - Reconci
Note P - Income Taxes - Reconciliation of the Effective Income Tax Rate to US Federal Statutory Income Tax Rate (Details) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Federal statutory income tax rate | 21.00% | 34.00% |
Permanent differences | ||
Change in tax laws/tax rate | (13.00%) | |
Effect of net operating loss | (21.00%) | (21.00%) |
Effective tax rate |
Note Q - Profit Sharing Plan (D
Note Q - Profit Sharing Plan (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 0 | $ 0 |
Note R - Earnings Per Share (_3
Note R - Earnings Per Share (EPS) - Reconciliation of Numerator of Basic and Diluted EPS Calculations (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Basic Numerator: | ||
Loss from continuing operations | $ (6,868,875) | $ (4,275,338) |
Deemed dividend from trigger of anti-dilution provision feature | (1,428,966) | |
Convertible preferred stock dividends | (198,033) | (769,158) |
Net loss available to common stockholders (basic and diluted EPS) | $ (8,495,874) | $ (5,044,496) |
Note R - Earnings Per Share (_4
Note R - Earnings Per Share (EPS) - Securities Excluded From the Diluted Per Share Calculation (Details) - shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Exercise Price Less Than Average Market Price Of Common Shares [Member] | ||
Antidilutive securities (in shares) | 2,124,718 | 5,282,060 |
Exercise Price Less Than Average Market Price Of Common Shares [Member] | Preferred Stock [Member] | ||
Antidilutive securities (in shares) | 1,426,756 | 5,264,422 |
Exercise Price Less Than Average Market Price Of Common Shares [Member] | Employee Stock Option [Member] | ||
Antidilutive securities (in shares) | 83 | 15,529 |
Exercise Price Less Than Average Market Price Of Common Shares [Member] | Warrant [Member] | ||
Antidilutive securities (in shares) | 697,879 | 2,109 |
Exercise Price Greater Than Average Market Price Of Common Shares [Member] | ||
Antidilutive securities (in shares) | 1,769,820 | 2,741,480 |
Exercise Price Greater Than Average Market Price Of Common Shares [Member] | Employee Stock Option [Member] | ||
Antidilutive securities (in shares) | 1,583,014 | 1,390,428 |
Exercise Price Greater Than Average Market Price Of Common Shares [Member] | Warrant [Member] | ||
Antidilutive securities (in shares) | 186,806 | 1,351,052 |
Note S - Subsequent Events (Det
Note S - Subsequent Events (Details Textual) - $ / shares | Mar. 28, 2019 | Mar. 21, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 1.97 | $ 2.69 | ||
Subsequent Event [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures, Total | 235,334 | |||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 1.18 | |||
Subsequent Event [Member] | Employee Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 7 years | |||
Director [Member] | Subsequent Event [Member] | ||||
Stock Issued During Period, Shares, Issued for Services | 1,104 | 12,716 |