Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2021 | Aug. 16, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2021 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2021 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 0-21683 | |
Entity Registrant Name | hopTo Inc. | |
Entity Central Index Key | 0001021435 | |
Entity Tax Identification Number | 13-3899021 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 6 Loudon Road | |
Entity Address, Address Line Two | Suite 200 | |
Entity Address, City or Town | Concord | |
Entity Address, State or Province | NH | |
Entity Address, Postal Zip Code | 03301 | |
City Area Code | 800 | |
Local Phone Number | 472-7466 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 18,850,675 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 4,483,400 | $ 4,375,300 |
Marketable securities | 317,200 | |
Accounts receivable, net | 466,700 | 417,300 |
Prepaid expenses and other current assets | 136,000 | 48,500 |
Total current assets | 5,403,300 | 4,841,100 |
Property and equipment, net | 2,900 | |
Other assets | 17,800 | 17,800 |
Total assets | 5,424,000 | 4,858,900 |
Current liabilities | ||
Accounts payable | 248,600 | 251,000 |
Accrued expenses | 64,400 | 82,000 |
Accrued wages | 143,500 | 141,600 |
Deferred revenue | 1,180,200 | 1,084,900 |
Total current liabilities | 1,636,700 | 1,559,500 |
Long-term liabilities | ||
Deferred revenue | 343,000 | 383,000 |
Total liabilities | 1,979,700 | 1,942,500 |
Commitments and contingencies | ||
Stockholders’ equity | ||
Preferred stock, $0.01 par value, 5,000,000 shares authorized, no shares issued and outstanding as of June 30, 2021 or December 31, 2020 | ||
Common stock, $0.0001 par value, 195,000,000 shares authorized, 18,850,675 shares issued and outstanding for both periods ending June 30, 2021 and December 31, 2020 | 1,900 | 1,900 |
Additional paid-in capital | 82,155,200 | 82,155,200 |
Accumulated deficit | (78,712,800) | (79,240,700) |
Total stockholders’ equity | 3,444,300 | 2,916,400 |
Total liabilities and stockholders’ equity | $ 5,424,000 | $ 4,858,900 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 195,000,000 | 195,000,000 |
Common stock, shares issued | 18,850,675 | 18,850,675 |
Common stock, shares outstanding | 18,850,675 | 18,850,675 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenues: | ||||
Total revenue | $ 899,100 | $ 1,066,100 | $ 1,759,300 | $ 1,910,700 |
Cost of revenue: | ||||
Total cost of revenue | 45,600 | 37,400 | 89,800 | 75,500 |
Gross profit | 853,500 | 1,028,700 | 1,669,500 | 1,835,200 |
Operating expenses: | ||||
Selling and marketing | 153,100 | 151,500 | 296,100 | 255,900 |
General and administrative | 199,600 | 239,500 | 414,300 | 468,500 |
Research and development | 364,500 | 356,900 | 727,600 | 720,900 |
Total operating expenses | 717,200 | 747,900 | 1,438,000 | 1,445,300 |
Income from operations | 136,300 | 280,800 | 231,500 | 389,900 |
Other income: | ||||
Unrealized gain in marketable securities | 12,400 | 26,600 | ||
Other income | 46,900 | 269,800 | 46,900 | |
Income before provision for income taxes | 148,700 | 327,700 | 527,900 | 436,800 |
Provision for income taxes | 5,000 | 5,000 | ||
Net income | $ 148,700 | $ 322,700 | $ 527,900 | $ 431,800 |
Net income per share, basic | $ 0.01 | $ 0.03 | $ 0.03 | $ 0.04 |
Net income per share, diluted | $ 0.01 | $ 0.03 | $ 0.03 | $ 0.04 |
Weighted average number of common shares outstanding | ||||
Basic | 18,850,675 | 11,432,378 | 18,850,675 | 10,687,029 |
Diluted | 19,092,981 | 11,903,890 | 19,093,375 | 11,158,540 |
License [Member] | ||||
Revenues: | ||||
Total revenue | $ 174,800 | $ 175,500 | $ 374,200 | $ 451,800 |
Technology Service [Member] | ||||
Revenues: | ||||
Total revenue | 702,700 | 639,200 | 1,342,000 | 1,185,900 |
Product and Service, Other [Member] | ||||
Revenues: | ||||
Total revenue | 21,600 | 251,400 | 43,100 | 273,000 |
Service [Member] | ||||
Cost of revenue: | ||||
Total cost of revenue | 13,500 | 13,100 | 27,000 | 26,300 |
Product [Member] | ||||
Cost of revenue: | ||||
Total cost of revenue | $ 32,100 | $ 24,300 | $ 62,800 | $ 49,200 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Dec. 31, 2019 | $ 1,000 | $ 79,523,500 | $ (79,934,400) | $ (409,900) |
Beginning balance, shares at Dec. 31, 2019 | 9,834,866 | |||
Shares issued for settlement of accrued expenses | 39,600 | 39,600 | ||
Shares issued for settlement of accrued expenses, shares | 120,000 | |||
Proceeds from rights offering, shares | ||||
Contributed services | 56,200 | 56,200 | ||
Net income | 109,100 | 109,100 | ||
Ending balance, value at Mar. 31, 2020 | $ 1,000 | 79,619,300 | (79,825,300) | (205,000) |
Ending balance, shares at Mar. 31, 2020 | 9,954,866 | |||
Beginning balance, value at Dec. 31, 2019 | $ 1,000 | 79,523,500 | (79,934,400) | (409,900) |
Beginning balance, shares at Dec. 31, 2019 | 9,834,866 | |||
Shares issued for settlement of accrued expenses, shares | 120,000 | |||
Net income | 431,800 | |||
Ending balance, value at Jun. 30, 2020 | $ 1,100 | 80,036,100 | (79,502,600) | 534,600 |
Ending balance, shares at Jun. 30, 2020 | 11,555,504 | |||
Beginning balance, value at Mar. 31, 2020 | $ 1,000 | 79,619,300 | (79,825,300) | (205,000) |
Beginning balance, shares at Mar. 31, 2020 | 9,954,866 | |||
Shares issued for settlement of accrued expenses, shares | 0 | |||
Proceeds from rights offering | $ 100 | 480,000 | 480,100 | |
Proceeds from rights offering, shares | 1,600,638 | |||
Issuance cost for rights offering | (119,400) | (119,400) | ||
Contributed services | 56,200 | 56,200 | ||
Net income | 322,700 | 322,700 | ||
Ending balance, value at Jun. 30, 2020 | $ 1,100 | 80,036,100 | (79,502,600) | 534,600 |
Ending balance, shares at Jun. 30, 2020 | 11,555,504 | |||
Beginning balance, value at Dec. 31, 2020 | $ 1,900 | 82,155,200 | (79,240,700) | 2,916,400 |
Beginning balance, shares at Dec. 31, 2020 | 18,850,675 | |||
Net income | 379,200 | 379,200 | ||
Ending balance, value at Mar. 31, 2021 | $ 1,900 | 82,155,200 | (78,861,500) | 3,295,600 |
Ending balance, shares at Mar. 31, 2021 | 18,850,675 | |||
Beginning balance, value at Dec. 31, 2020 | $ 1,900 | 82,155,200 | (79,240,700) | 2,916,400 |
Beginning balance, shares at Dec. 31, 2020 | 18,850,675 | |||
Shares issued for settlement of accrued expenses, shares | 0 | |||
Net income | 527,900 | |||
Ending balance, value at Jun. 30, 2021 | $ 1,900 | 82,155,200 | (78,712,800) | 3,444,300 |
Ending balance, shares at Jun. 30, 2021 | 18,850,675 | |||
Beginning balance, value at Mar. 31, 2021 | $ 1,900 | 82,155,200 | (78,861,500) | 3,295,600 |
Beginning balance, shares at Mar. 31, 2021 | 18,850,675 | |||
Shares issued for settlement of accrued expenses, shares | 0 | |||
Net income | 148,700 | 148,700 | ||
Ending balance, value at Jun. 30, 2021 | $ 1,900 | $ 82,155,200 | $ (78,712,800) | $ 3,444,300 |
Ending balance, shares at Jun. 30, 2021 | 18,850,675 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities | ||
Net income | $ 527,900 | $ 431,800 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation | 500 | |
Contributed services | 112,400 | |
Changes in allowance for doubtful accounts | 5,600 | (2,900) |
Gain on sale of patents | (269,800) | |
Unrealized gain from marketable securities | (26,600) | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (55,000) | (43,200) |
Prepaid expenses and other current assets | (87,500) | (168,700) |
Accounts payable | (2,400) | (27,600) |
Accrued expenses | (17,600) | 270,300 |
Accrued wages | 1,900 | 16,200 |
Deferred revenue | 55,300 | (174,500) |
Net cash provided by operating activities | 132,300 | 413,800 |
Cash flows from investing activities | ||
Purchase of marketable securities | (290,600) | |
Proceeds from sale of patents | 269,800 | |
Purchase of property and equipment | (3,400) | |
Net cash used by investing activities | (24,200) | |
Cash flows from financing activities | ||
Proceeds from rights offering | 480,100 | |
Issuance cost for rights offering | (63,100) | |
Net cash provided by financing activities | 417,000 | |
Net change in cash | 108,100 | 830,800 |
Cash, beginning of the period | 4,375,300 | 1,541,900 |
Cash, end of the period | 4,483,400 | 2,372,700 |
Supplemental disclosure of cash flow information: | ||
Income taxes paid | 5,000 | |
Supplemental disclosure of non-cash investing and financing information: | ||
Non-cash financing activities: shares issued for settlement of accrued expenses | 39,600 | |
Issuance of cost for rights offering included in accounts payable and accrued expenses | $ 56,300 |
Organization
Organization | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Organization | 1. Organization hopTo Inc., a Delaware corporation, through its wholly-owned subsidiary GraphOn Corporation (collectively, “we”, “us,” “our” or the “Company”) are developers of application publishing software which includes application virtualization software and cloud computing software for multiple computer operating systems including Windows, UNIX and several Linux-based variants. The Company sells a family of products under the brand name GO-Global, which is a software application publishing business and is the Company’s sole revenue source at this time. GO-Global is an application access solution for use and/or resale by independent software vendors, corporate enterprises, governmental and educational institutions, and others, who wish to take advantage of cross-platform remote access and Web-enabled access to their existing software applications, as well as those who are deploying secure, private cloud environments. |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 2. Significant Accounting Policies Basis of Presentation The unaudited consolidated financial statements include the accounts of hopTo Inc. and its wholly-owned subsidiaries. All significant intercompany accounts and transactions are eliminated upon consolidation. The unaudited consolidated financial statements included herein have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) applicable to interim financial information and the rules and regulations promulgated by the Securities and Exchange Commission (the “SEC”). Accordingly, such unaudited consolidated financial statements do not include all information and footnote disclosures required in annual financial statements. The unaudited consolidated financial statements included herein reflect all adjustments, which include only normal, recurring adjustments, that are, in our opinion, necessary to state fairly the results for the periods presented. This Quarterly Report on Form 10-Q should be read in conjunction with our audited consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2020 which was filed with the SEC on March 31, 2021 (“2020 10-K Report”). The interim results presented herein are not necessarily indicative of the results of operations that may be expected for the full fiscal year ending December 31, 2021 or any future period. Certain prior year information has been reclassified to conform to current year presentation. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reported periods. Amounts could materially change in the future. These significant estimates include the valuation of stock-based compensation expense, the allowance for doubtful accounts, depreciation of long-lived assets, and accruals of liabilities. Revenue Recognition The Company markets and licenses its products indirectly through channel distributors, value-added resellers, independent software vendors (“ISVs”), hosting service providers, corporate enterprises, governmental and educational institutions and others. Our product licenses are perpetual. We also separately sell intellectual property licenses, maintenance contracts, which are comprised of license updates and customer service access, as well as other products and services. The Company recognizes revenue in accordance with Accounting Standards Codification (“ASC”) 606, “Revenue from Contracts with Customers.” Revenues under ASC 606 are recognized when the promised goods or services are transferred to customers in an amount that reflects the consideration to which the Company expects to be entitled to in exchange for those goods or services. Product Sales All of our licenses are delivered to the customer electronically. The Company sends the license key to the customer to download the related software from Company portal. We recognize revenue upon delivery of these licenses. For stocking resellers who purchase licenses through inventory stocking orders with the intent to resell to an end-user, revenue is recognized when the resellers’ accounts have been credited, at their discretion, for the number of licenses purchased. Services Revenue The Company has maintenance contracts that entitle customers to support and certain updates to the product. Revenue from maintenance contracts is recognized ratably over the related contract period, which generally ranges from one to five years. Subscription Revenue The Company sells subscription licenses that provide the customer with the right to use the software, maintenance and support and certain updates to the product. Subscription licenses are delivered electronically by either the Company’s cloud licensing server or by sending a term license key to the customer to download the related software from the Company portal. Revenue from subscription licenses is recognized ratably over the related contract period, which generally ranges from one month to one year. The Company’s product sales by geographic area are presented in Note 5. Cash and Cash Equivalents The Company considers all highly liquid holdings with maturities of three months or less at the time of purchase to be cash equivalents. The Company had cash equivalents of $ 317,200 primarily in money market account as of June 30, 2021 (unaudited) and had no such cash equivalents at December 31, 2020. Allowance for Doubtful Accounts We maintain an allowance for doubtful accounts that reflects our best estimate of potentially uncollectible trade receivables. The allowance is based on assessments of the collectability of specific customer accounts and the general aging and size of the accounts receivable. We regularly review the adequacy of our allowance for doubtful accounts by considering such factors as historical experience, credit worthiness, and current economic conditions that may affect a customer’s ability to pay. We specifically reserve for those accounts deemed uncollectible. We also establish, and adjust, a general allowance for doubtful accounts based on our review of the aging and size of our accounts receivable. As of June 30, 2021 and December 31, 2020, the allowance for doubtful accounts totaled $ 11,500 5,900 Concentration of Credit Risk For the six months ended June 30, 2021, the Company had two resellers comprising 11.2% 10.2% 11.1% As of June 30, 2021 and December 31, 2020, the Company has two resellers comprising 24.9% 18.0% 25.7% 18.9% For the purposes of this description, “sales” refers to the dollar value of orders received from these customers and partners in the period indicated. The sales values do not necessarily equal recognized revenue for these periods due to our revenue recognition policies which require deferral of revenue associated with prepaid software service fees. The loss of one of these resellers would not have a material impact as the Company could take over the end customer relationship. Basic and Diluted Earnings Per Share In accordance with ASC 260, “Earnings Per Share,” the basic income (loss) per common share is computed by dividing the net income (loss) available to common stockholders by the weighted average common shares outstanding during the period. Diluted income (loss) per share reflects per share amounts that would have resulted if diluted potential common stock had been converted to common stock. Dilutive common share equivalents as of June 30, 2021, representing 248,216 78,550 93,076 Fair Value of Financial Instruments The Company’s financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable, and accrued expenses. The carrying amount of these financial instruments approximates fair value due to the nature of the accounts and their short-term maturities. Recently Adopted Accounting Pronouncements The FASB issues ASUs to amend the authoritative literature in ASC. There have been several ASUs to date, including those above, that amend the original text of ASC. Management believes that those issued to date either (i) provide supplemental guidance, (ii) are technical corrections, (iii) are not applicable to us or (iv) are not expected to have a significant impact our financial statements. |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | 3. Property and Equipment Property and equipment consisted of the following. Schedule of Property and Equipment June 31, December 31, 2021 2020 (Unaudited) Equipment $ 157,700 $ 154,300 Furniture and fixtures 1,600 1,600 159,300 155,900 Less: accumulated depreciation (156,400 ) (155,900 ) $ 2,900 $ - Depreciation expense amounted to $ 500 0 June 30, 2021 and 2020. |
Stockholders_ Equity
Stockholders’ Equity | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Stockholders’ Equity | 4. Stockholders’ Equity Stock-Based Compensation Plans The following summarizes the stock option activity for the six months ended June 30, 2021. Schedule of Share-based Compensation, Stock Options, Activity Weighted- Average Weighted- Remaining Average Contractual Exercise Life Options Price (Years) Outstanding at December 31, 2020 93,076 $ 3.03 0.74 Granted - Forfeited/cancelled (14,526 ) Outstanding at June 30, 2021 78,550 $ 3.45 0.38 Vested and expected to vest at June 30, 2021 78,550 $ 3.45 0.38 Exercisable at June 30, 2021 78,550 $ 3.45 0.38 The following table summarizes information about options outstanding and exercisable as of June 30, 2021. Schedule of Share-based Compensation, Shares Authorized Under Stock Option Plans, by Exercise Price Range Options Outstanding Options Exercisable Weighted- Weighted- Range of Average Average Average Exercise Number Remaining Exercise Number Exercise Price of Shares Life (Years) Price of Shares Price $ 2.00 4.00 63,684 0.37 $ 3.21 63,684 $ 3.21 4.20 6.68 14,866 0.40 4.46 14,866 4.46 78,550 78,550 Shares of Common Stock Issued During the three and six-month periods ending June 30, 2021, the Company did no 0 120,000 120,000 39,600 Warrants As of June 30, 2021 and December 31, 2020, the Company had 248,216 0.01 May 20, 2023 |
Sales by Geographical Location
Sales by Geographical Location | 6 Months Ended |
Jun. 30, 2021 | |
Sales By Geographical Location | |
Sales by Geographical Location | 5. Sales by Geographical Location Revenue by country for the three and six months ended June 30, 2021 and 2020 was as follows. Schedule of Revenue by Country Three Months Ended Six Months Ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Revenue by Country United States $ 364,700 $ 301,600 $ 712,200 $ 614,200 Brazil 174,600 417,800 348,600 583,400 Japan 115,800 95,600 232,200 165,900 Other Countries 244,000 251,100 466,300 547,200 Total 899,100 1,066,100 1,759,300 1,910,700 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 6. Commitments and Contingencies Profit Sharing Plans The Company has adopted a 401(k) plan to provide retirement benefits for employees under which the Company makes discretionary matching contributions During the three months ended June 30, 2021 and 2020, the Company contributed a total of $ 3,200 6,100 15,400 15,600 Contingencies During the ordinary course of business, the Company is subject to various potential claims and litigation. Management is not aware of any outstanding litigation which would have a significant impact on the Company’s financial statements. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited consolidated financial statements include the accounts of hopTo Inc. and its wholly-owned subsidiaries. All significant intercompany accounts and transactions are eliminated upon consolidation. The unaudited consolidated financial statements included herein have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) applicable to interim financial information and the rules and regulations promulgated by the Securities and Exchange Commission (the “SEC”). Accordingly, such unaudited consolidated financial statements do not include all information and footnote disclosures required in annual financial statements. The unaudited consolidated financial statements included herein reflect all adjustments, which include only normal, recurring adjustments, that are, in our opinion, necessary to state fairly the results for the periods presented. This Quarterly Report on Form 10-Q should be read in conjunction with our audited consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2020 which was filed with the SEC on March 31, 2021 (“2020 10-K Report”). The interim results presented herein are not necessarily indicative of the results of operations that may be expected for the full fiscal year ending December 31, 2021 or any future period. Certain prior year information has been reclassified to conform to current year presentation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reported periods. Amounts could materially change in the future. These significant estimates include the valuation of stock-based compensation expense, the allowance for doubtful accounts, depreciation of long-lived assets, and accruals of liabilities. |
Revenue Recognition | Revenue Recognition The Company markets and licenses its products indirectly through channel distributors, value-added resellers, independent software vendors (“ISVs”), hosting service providers, corporate enterprises, governmental and educational institutions and others. Our product licenses are perpetual. We also separately sell intellectual property licenses, maintenance contracts, which are comprised of license updates and customer service access, as well as other products and services. The Company recognizes revenue in accordance with Accounting Standards Codification (“ASC”) 606, “Revenue from Contracts with Customers.” Revenues under ASC 606 are recognized when the promised goods or services are transferred to customers in an amount that reflects the consideration to which the Company expects to be entitled to in exchange for those goods or services. Product Sales All of our licenses are delivered to the customer electronically. The Company sends the license key to the customer to download the related software from Company portal. We recognize revenue upon delivery of these licenses. For stocking resellers who purchase licenses through inventory stocking orders with the intent to resell to an end-user, revenue is recognized when the resellers’ accounts have been credited, at their discretion, for the number of licenses purchased. Services Revenue The Company has maintenance contracts that entitle customers to support and certain updates to the product. Revenue from maintenance contracts is recognized ratably over the related contract period, which generally ranges from one to five years. Subscription Revenue The Company sells subscription licenses that provide the customer with the right to use the software, maintenance and support and certain updates to the product. Subscription licenses are delivered electronically by either the Company’s cloud licensing server or by sending a term license key to the customer to download the related software from the Company portal. Revenue from subscription licenses is recognized ratably over the related contract period, which generally ranges from one month to one year. The Company’s product sales by geographic area are presented in Note 5. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid holdings with maturities of three months or less at the time of purchase to be cash equivalents. The Company had cash equivalents of $ 317,200 primarily in money market account as of June 30, 2021 (unaudited) and had no such cash equivalents at December 31, 2020. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts We maintain an allowance for doubtful accounts that reflects our best estimate of potentially uncollectible trade receivables. The allowance is based on assessments of the collectability of specific customer accounts and the general aging and size of the accounts receivable. We regularly review the adequacy of our allowance for doubtful accounts by considering such factors as historical experience, credit worthiness, and current economic conditions that may affect a customer’s ability to pay. We specifically reserve for those accounts deemed uncollectible. We also establish, and adjust, a general allowance for doubtful accounts based on our review of the aging and size of our accounts receivable. As of June 30, 2021 and December 31, 2020, the allowance for doubtful accounts totaled $ 11,500 5,900 |
Concentration of Credit Risk | Concentration of Credit Risk For the six months ended June 30, 2021, the Company had two resellers comprising 11.2% 10.2% 11.1% As of June 30, 2021 and December 31, 2020, the Company has two resellers comprising 24.9% 18.0% 25.7% 18.9% For the purposes of this description, “sales” refers to the dollar value of orders received from these customers and partners in the period indicated. The sales values do not necessarily equal recognized revenue for these periods due to our revenue recognition policies which require deferral of revenue associated with prepaid software service fees. The loss of one of these resellers would not have a material impact as the Company could take over the end customer relationship. |
Basic and Diluted Earnings Per Share | Basic and Diluted Earnings Per Share In accordance with ASC 260, “Earnings Per Share,” the basic income (loss) per common share is computed by dividing the net income (loss) available to common stockholders by the weighted average common shares outstanding during the period. Diluted income (loss) per share reflects per share amounts that would have resulted if diluted potential common stock had been converted to common stock. Dilutive common share equivalents as of June 30, 2021, representing 248,216 78,550 93,076 |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company’s financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable, and accrued expenses. The carrying amount of these financial instruments approximates fair value due to the nature of the accounts and their short-term maturities. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements The FASB issues ASUs to amend the authoritative literature in ASC. There have been several ASUs to date, including those above, that amend the original text of ASC. Management believes that those issued to date either (i) provide supplemental guidance, (ii) are technical corrections, (iii) are not applicable to us or (iv) are not expected to have a significant impact our financial statements. |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consisted of the following. Schedule of Property and Equipment June 31, December 31, 2021 2020 (Unaudited) Equipment $ 157,700 $ 154,300 Furniture and fixtures 1,600 1,600 159,300 155,900 Less: accumulated depreciation (156,400 ) (155,900 ) $ 2,900 $ - |
Stockholders_ Equity (Tables)
Stockholders’ Equity (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity | The following summarizes the stock option activity for the six months ended June 30, 2021. Schedule of Share-based Compensation, Stock Options, Activity Weighted- Average Weighted- Remaining Average Contractual Exercise Life Options Price (Years) Outstanding at December 31, 2020 93,076 $ 3.03 0.74 Granted - Forfeited/cancelled (14,526 ) Outstanding at June 30, 2021 78,550 $ 3.45 0.38 Vested and expected to vest at June 30, 2021 78,550 $ 3.45 0.38 Exercisable at June 30, 2021 78,550 $ 3.45 0.38 |
Schedule of Share-based Compensation, Shares Authorized Under Stock Option Plans, by Exercise Price Range | The following table summarizes information about options outstanding and exercisable as of June 30, 2021. Schedule of Share-based Compensation, Shares Authorized Under Stock Option Plans, by Exercise Price Range Options Outstanding Options Exercisable Weighted- Weighted- Range of Average Average Average Exercise Number Remaining Exercise Number Exercise Price of Shares Life (Years) Price of Shares Price $ 2.00 4.00 63,684 0.37 $ 3.21 63,684 $ 3.21 4.20 6.68 14,866 0.40 4.46 14,866 4.46 78,550 78,550 |
Sales by Geographical Location
Sales by Geographical Location (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Sales By Geographical Location | |
Schedule of Revenue by Country | Revenue by country for the three and six months ended June 30, 2021 and 2020 was as follows. Schedule of Revenue by Country Three Months Ended Six Months Ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Revenue by Country United States $ 364,700 $ 301,600 $ 712,200 $ 614,200 Brazil 174,600 417,800 348,600 583,400 Japan 115,800 95,600 232,200 165,900 Other Countries 244,000 251,100 466,300 547,200 Total 899,100 1,066,100 1,759,300 1,910,700 |
Significant Accounting Polici_3
Significant Accounting Policies (Details Narrative) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Product Information [Line Items] | |||
Cash Equivalents, at Carrying Value | $ 317,200 | $ 0 | |
Allowance for doubtful accounts | $ 11,500 | $ 5,900 | |
Number of common shares equivalents of outstanding in money warrants | 248,216 | ||
Shares of common stock equivalents excluded from computation of diluted earnings per share | 78,550 | 93,076 | |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Resellers One [Member] | |||
Product Information [Line Items] | |||
Concentration of credit risk percentage | 11.20% | 11.10% | |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Resellers Two [Member] | |||
Product Information [Line Items] | |||
Concentration of credit risk percentage | 10.20% | ||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Resellers One [Member] | |||
Product Information [Line Items] | |||
Concentration of credit risk percentage | 24.90% | 25.70% | |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Resellers Two [Member] | |||
Product Information [Line Items] | |||
Concentration of credit risk percentage | 18.00% | 18.90% |
Schedule of Property and Equipm
Schedule of Property and Equipment (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment gross | $ 159,300 | $ 155,900 |
Less: accumulated depreciation | (156,400) | (155,900) |
Property and equipment net | 2,900 | |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment gross | 157,700 | 154,300 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment gross | $ 1,600 | $ 1,600 |
Property and Equipment (Details
Property and Equipment (Details Narrative) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation | $ 500 |
Schedule of Share-based Compens
Schedule of Share-based Compensation, Stock Options, Activity (Details) | 6 Months Ended |
Jun. 30, 2021$ / sharesshares | |
Equity [Abstract] | |
Options Outstanding, Beginning Balance | 93,076 |
Weighted Average Exercise Price, Outstanding Beginning Balance | $ / shares | $ 3.03 |
Weighted Average Remaining Contractual Life (Years) Outstanding, Beginning Balance | 8 months 26 days |
Options Outstanding, Granted | |
Options Outstanding, Forfeited/cancelled | (14,526) |
Options Outstanding, Ending Balance | 78,550 |
Weighted Average Exercise Price, Outstanding Ending Balance | $ / shares | $ 3.45 |
Weighted Average Remaining Contractual Life (Years) Outstanding, Ending Balance | 4 months 17 days |
Options Outstanding, Vested and expected to vest at June 30, 2020 | 78,550 |
Weighted Average Exercise Price, Vested and expected to vest at December 31, 2020 | $ / shares | $ 3.45 |
Weighted Average Remaining Contractual Life (Years), Vested and expected to vest at December 31, 2020 | 4 months 17 days |
Options Exercisable at December 31, 2020 | 78,550 |
Weighted Average Exercise Price, Exercisable at December 31, 2020 | $ / shares | $ 3.45 |
Weighted Average Remaining Contractual Life (Years) Exercisable at December 31, 2020 | 4 months 17 days |
Schedule of Share-based Compe_2
Schedule of Share-based Compensation, Shares Authorized Under Stock Option Plans, by Exercise Price Range (Details) | 6 Months Ended |
Jun. 30, 2021$ / sharesshares | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Options Outstanding, Number of shares | shares | 78,550 |
Options Exercisable, Number of shares | shares | 78,550 |
Exercise Price Range 1 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise Price Range, Lower Range Limit | $ 2 |
Exercise Price Range, Upper Range Limit | $ 4 |
Options Outstanding, Number of shares | shares | 63,684 |
Options Outstanding, Weighted Average Remaining Life (Years) | 4 months 13 days |
Options Outstanding, Weighted Average Exercise Price | $ 3.21 |
Options Exercisable, Number of shares | shares | 63,684 |
Options Exercisable, Weighted Average Exercise Price | $ 3.21 |
Exercise Price Range 2 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise Price Range, Lower Range Limit | 4.20 |
Exercise Price Range, Upper Range Limit | $ 6.68 |
Options Outstanding, Number of shares | shares | 14,866 |
Options Outstanding, Weighted Average Remaining Life (Years) | 4 months 24 days |
Options Outstanding, Weighted Average Exercise Price | $ 4.46 |
Options Exercisable, Number of shares | shares | 14,866 |
Options Exercisable, Weighted Average Exercise Price | $ 4.46 |
Stockholders_ Equity (Details N
Stockholders’ Equity (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Accrued expenses | $ 64,400 | $ 64,400 | $ 82,000 | |||
Warrants outstanding | 248,216 | 248,216 | 248,216 | |||
Warrants outstanding exercisable price | $ 0.01 | $ 0.01 | ||||
Warrants expiration date | May 20, 2023 | May 20, 2023 | ||||
Board of Directors [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Number of common stock shares issued | 120,000 | |||||
Common Stock [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Number of common stock shares issued | 0 | 0 | 120,000 | 0 | 120,000 | |
Accrued expenses | $ 39,600 | $ 39,600 |
Schedule of Revenue by Country
Schedule of Revenue by Country (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Revenue by country | $ 899,100 | $ 1,066,100 | $ 1,759,300 | $ 1,910,700 |
UNITED STATES | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Revenue by country | 364,700 | 301,600 | 712,200 | 614,200 |
BRAZIL | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Revenue by country | 174,600 | 417,800 | 348,600 | 583,400 |
JAPAN | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Revenue by country | 115,800 | 95,600 | 232,200 | 165,900 |
Other Countries [Member] | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Revenue by country | $ 244,000 | $ 251,100 | $ 466,300 | $ 547,200 |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Profit sharing plans | $ 3,200 | $ 6,100 | $ 15,400 | $ 15,600 |