Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 12, 2020 | |
Cover [Abstract] | ||
Entity Registrant Name | Intellicheck, Inc. | |
Entity Central Index Key | 0001040896 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2020 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business Flag | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 18,409,728 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2020 |
Balance Sheets
Balance Sheets - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
CURRENT ASSETS: | ||
Cash | $ 12,812,322 | $ 3,350,853 |
Accounts receivable, net of allowance of $18,750 and $42,055 at September 30, 2020 and December 31, 2019, respectively | 1,739,122 | 1,674,894 |
Other current assets | 525,215 | 354,349 |
Total current assets | 15,076,659 | 5,380,096 |
PROPERTY AND EQUIPMENT, net | 156,508 | 181,731 |
GOODWILL | 8,101,661 | 8,101,661 |
INTANGIBLE ASSETS, net | 508,836 | 174,237 |
OPERATING LEASE RIGHT-OF-USE ASSET | 61,859 | 151,668 |
OTHER ASSETS | 7,778 | |
Total assets | 23,905,523 | 13,997,171 |
CURRENT LIABILITIES: | ||
Accounts payable | 117,483 | 95,388 |
Accrued expenses | 1,666,504 | 1,408,086 |
Note payable, current portion | 44,467 | |
Operating lease liability, current portion | 64,835 | 125,851 |
Deferred revenue, current portion | 446,411 | 572,391 |
Total current liabilities | 2,339,700 | 2,201,716 |
OTHER LIABILITIES: | ||
Deferred revenue, long-term portion | 10,522 | 13,322 |
Note payable, long-term portion | 761,633 | |
Operating lease liability, long-term portion | 32,620 | |
Total liabilities | 3,111,855 | 2,247,658 |
COMMITMENTS AND CONTINGENCIES (Note 10) | ||
STOCKHOLDERS' EQUITY: | ||
Common stock - $.001 par value; 40,000,000 shares authorized; 18,390,229 and 16,041,650 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively | 18,390 | 16,042 |
Additional paid-in capital | 138,411,649 | 128,668,583 |
Accumulated deficit | (117,636,371) | (116,935,112) |
Total stockholders' equity | 20,793,668 | 11,749,513 |
Total liabilities and stockholders' equity | $ 23,905,523 | $ 13,997,171 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for accounts receivable | $ 18,750 | $ 42,055 |
Common stock, par value | $ .001 | $ .001 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 18,390,229 | 16,041,650 |
Common stock, shares outstanding | 18,390,229 | 16,041,650 |
Statements of Operations (Unaud
Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement [Abstract] | ||||
REVENUES | $ 2,698,975 | $ 1,930,201 | $ 7,656,442 | $ 4,767,186 |
COST OF REVENUES | (293,699) | (259,053) | (1,196,528) | (670,338) |
Gross profit | 2,405,276 | 1,671,148 | 6,459,914 | 4,096,848 |
OPERATING EXPENSES | ||||
Selling, general and administrative | 1,472,094 | 1,267,425 | 4,341,985 | 4,140,503 |
Research and development | 907,763 | 984,247 | 2,837,374 | 2,675,621 |
Total operating expenses | 2,379,857 | 2,251,672 | 7,179,359 | 6,816,124 |
Income (loss) from operations | 25,419 | (580,524) | (719,445) | (2,719,276) |
OTHER INCOME | ||||
Interest and other income | 6,993 | 12,294 | 18,186 | 64,378 |
Net income (loss) | $ 32,412 | $ (568,230) | $ (701,259) | $ (2,654,898) |
PER SHARE INFORMATION | ||||
Income (Loss) per common share - Basic | $ 0 | $ (0.04) | $ (0.04) | $ (0.17) |
Income (Loss) per common share - Diluted | $ 0 | $ (0.04) | $ (0.04) | $ (0.17) |
Weighted average common shares used in computing per share amounts - Basic | 18,336,107 | 15,864,004 | 16,960,770 | 15,749,312 |
Weighted average common shares used in computing per share amounts - Diluted | 18,764,994 | 15,864,004 | 16,960,770 | 15,749,312 |
Statements of Stockholders' Equ
Statements of Stockholders' Equity (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Total |
Balance at Dec. 31, 2018 | $ 15,639 | $ 127,290,467 | $ (114,386,401) | $ 12,919,705 |
Balance, shares at Dec. 31, 2018 | 15,638,765 | |||
Stock-based compensation expense | 513,824 | 513,824 | ||
Exercise of stock options, net of cashless exercise of shares | $ 58 | 63,192 | 63,250 | |
Exercise of stock options, net of cashless exercise of shares, shares | 58,008 | |||
Exercise of warrants | $ 179 | 392,675 | 392,854 | |
Exercise of warrants, shares | 178,570 | |||
Issuance of shares for restricted stock grants | $ 5 | (5) | ||
Issuance of shares for restricted stock grants, shares | 5,799 | |||
Net loss | (2,654,898) | (2,654,898) | ||
Balance at Sep. 30, 2019 | $ 15,881 | 128,260,153 | (117,041,299) | 11,234,735 |
Balance, shares at Sep. 30, 2019 | 15,881,142 | |||
Balance at Jun. 30, 2019 | $ 15,792 | 128,000,628 | (116,473,069) | 11,543,351 |
Balance, shares at Jun. 30, 2019 | 15,791,629 | |||
Stock-based compensation expense | 71,043 | 71,043 | ||
Exercise of warrants | $ 86 | 188,485 | 188,571 | |
Exercise of warrants, shares | 85,714 | |||
Issuance of shares for restricted stock grants | $ 3 | (3) | ||
Issuance of shares for restricted stock grants, shares | 3,799 | |||
Net loss | (568,230) | (568,230) | ||
Balance at Sep. 30, 2019 | $ 15,881 | 128,260,153 | (117,041,299) | 11,234,735 |
Balance, shares at Sep. 30, 2019 | 15,881,142 | |||
Balance at Dec. 31, 2019 | $ 16,042 | 128,668,583 | (116,935,112) | 11,749,513 |
Balance, shares at Dec. 31, 2019 | 16,041,650 | |||
Stock-based compensation expense | 286,909 | 286,909 | ||
Exercise of stock options, net of cashless exercise of shares | $ 674 | 167,934 | 168,608 | |
Exercise of stock options, net of cashless exercise of shares, shares | 674,171 | |||
Exercise of warrants | $ 51 | 111,599 | 111,650 | |
Exercise of warrants, shares | 50,750 | |||
Issuance of shares for restricted stock grants | $ 20 | (20) | ||
Issuance of shares for restricted stock grants, shares | 20,279 | |||
Issuance of common stock, net of costs | $ 1,769 | 10,567,698 | 10,569,467 | |
Issuance of common stock, net of costs, shares | 1,769,230 | |||
Settlement of executive bonuses with issuance of restricted stock units | $ 15 | 84,696 | 84,711 | |
Settlement of executive bonuses with issuance of restricted stock units, shares | 14,993 | |||
Shares forfeited in exchange for withholding taxes | $ (181) | (1,475,750) | (1,475,931) | |
Shares forfeited in exchange for withholding taxes, shares | (180,844) | |||
Net loss | (701,259) | (701,259) | ||
Balance at Sep. 30, 2020 | $ 18,390 | 138,411,649 | (117,636,371) | 20,793,668 |
Balance, shares at Sep. 30, 2020 | 18,390,229 | |||
Balance at Jun. 30, 2020 | $ 18,028 | 139,715,197 | (117,668,783) | 22,064,442 |
Balance, shares at Jun. 30, 2020 | 18,028,282 | |||
Stock-based compensation expense | 97,157 | 97,157 | ||
Exercise of stock options, net of cashless exercise of shares | $ 527 | 28,823 | 29,350 | |
Exercise of stock options, net of cashless exercise of shares, shares | 527,214 | |||
Exercise of warrants | $ 1 | 1,649 | 1,650 | |
Exercise of warrants, shares | 750 | |||
Issuance of shares for restricted stock grants | $ 7 | (7) | ||
Issuance of shares for restricted stock grants, shares | 7,284 | |||
Settlement of executive bonuses with issuance of restricted stock units | $ 6 | 31,245 | 31,251 | |
Settlement of executive bonuses with issuance of restricted stock units, shares | 5,531 | |||
Shares forfeited in exchange for withholding taxes | $ (179) | (1,462,415) | (1,462,594) | |
Shares forfeited in exchange for withholding taxes, shares | (178,832) | |||
Net loss | 32,412 | 32,412 | ||
Balance at Sep. 30, 2020 | $ 18,390 | $ 138,411,649 | $ (117,636,371) | $ 20,793,668 |
Balance, shares at Sep. 30, 2020 | 18,390,229 |
Statements of Stockholders' E_2
Statements of Stockholders' Equity (Unaudited) (Parenthetical) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||||
Exercise of stock options, net of cashless exercise of shares | 82,161 | 93,570 | 21,864 |
Statements of Cash Flows (Unaud
Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (701,259) | $ (2,654,898) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 127,143 | 176,034 |
Stock-based compensation expense | 286,909 | 513,824 |
Provision for doubtful accounts | 23,305 | |
Changes in assets and liabilities: | ||
(Increase) in accounts receivable | (64,228) | (424,338) |
(Increase) in other current assets | (192,103) | (181,406) |
Decrease in other assets | 1,964 | |
Increase in accounts payable and accrued expenses | 361,395 | 490,696 |
(Decrease) in deferred revenue | (128,779) | (34,868) |
Net cash used in operating activities | (310,922) | (2,089,687) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of software license | (400,000) | |
Capital expenditures | (36,520) | (16,539) |
Collection of note receivable | 29,017 | 31,432 |
Net cash (used in) provided by investing activities | (407,503) | 14,893 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net proceeds from issuance of common stock | 10,569,467 | |
Loan proceeds on unsecured promissory note | 806,100 | |
Net proceeds from issuance of common stock from exercise of stock options | 168,608 | 63,250 |
Proceeds from issuance of common stock from exercise of warrants | 111,650 | 392,854 |
Withholding taxes paid on exercise of stock options and vesting of restricted stock units | (1,475,931) | |
Net cash provided by financing activities | 10,179,894 | 456,104 |
Net increase (decrease) in cash | 9,461,469 | (1,618,690) |
CASH, beginning of period | 3,350,853 | 4,376,017 |
CASH, end of period | 12,812,322 | 2,757,327 |
Supplemental disclosure of noncash investing and financing activities: | ||
Settlement of executive bonuses with restricted stock units | $ 84,710 |
Nature of Business
Nature of Business | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business | 1. NATURE OF BUSINESS Business Intellicheck, Inc. (the “Company” or “Intellicheck”) is a prominent technology company that is engaged in developing, integrating and marketing identity authentication and threat identification solutions to address challenges that include bank and retail fraud prevention, law enforcement threat identification, and mobile and handheld access control and security for the government, military and commercial markets. Driven by its ID Check Authentication Engine, Intellicheck’s products include a solution for preventing fraud; whether in-person, on a mobile device or on-line, Intellicheck has a product offering to combat fraud for banks, retailers, auto dealers, access control applications, or any other use case where authenticating someone’s identity is important. Intellicheck continues to develop and release innovative products based upon its rich patent portfolio consisting of twenty issued patents and four pending patents. Liquidity For the nine months ended September 30, 2020, the Company incurred a net loss of $701,259 and used cash in operations of $310,922. As of September 30, 2020, the Company had cash of $12,812,322, working capital of $12,736,959 and an accumulated deficit of $117,636,371. On June 23, 2020, the Company completed a public offering of 1,769,230 shares of its common stock, offered to the public at $6.50 per share resulting in net proceeds to the Company of approximately $10,570,000 after deducting underwriters discounts and commissions paid by the Company and after deducting direct offering costs. Intellicheck intends to use these net proceeds for general corporate purposes and working capital. This public offering is referenced in Note 8 below. Based on the Company’s business plan and cash resources, Intellicheck expects its existing and future resources and revenues generated from operations to satisfy its working capital requirements for at least the next 12 months. As of the filing of this Form 10-Q, the COVID-19 pandemic has impacted the Company’s business and will likely continue to impact its business directly and/or indirectly for the foreseeable future. The Company is unable to accurately predict the full impact that the COVID-19 pandemic will have on its results of operations or financial condition due to numerous factors that are not within its control, including the duration and severity of the outbreak together with any potential statewide closures resulting from the recent increases in cases nationwide. See Part II, Item 1A for more information. |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 2. SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, they do not include all of the information and notes required by generally accepted accounting principles in the United States of America for complete financial statements. In the opinion of management, the unaudited interim financial statements furnished herein include all adjustments necessary for a fair presentation of the Company’s financial position at September 30, 2020 and the results of operations, stockholders’ equity and cash flows for the nine months ended September 30, 2020 and 2019. All such adjustments are of a normal and recurring nature. Interim financial statements are prepared on a basis consistent with the Company’s annual financial statements. Results of operations for the nine-month period ended September 30, 2020, are not necessarily indicative of the operating results that may be expected for the year ending December 31, 2020. The balance sheet as of December 31, 2019 has been derived from the audited financial statements at that date but does not include all of the information and notes required by accounting principles generally accepted in the United States of America (“GAAP”) for complete financial statements. References in this Quarterly Report on Form 10-Q to “authoritative guidance” is to the Accounting Standards Codification issued by the Financial Accounting Standards Board (“FASB”). For further information, refer to the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. Recent Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (“FASB”) issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” Use of Estimates The preparation of the Company’s financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the Company’s financial statements and accompanying notes. Significant estimates and assumptions that affect amounts reported in the financial statements include impairment consideration and valuation of goodwill and intangible assets, deferred tax valuation allowances, and the fair value of stock options granted under the Company’s stock-based compensation plans. Due to the inherent uncertainties involved in making estimates, actual results reported in future periods may be different from those estimates. Allowance for Doubtful Accounts The Company records its allowance for doubtful accounts based upon its assessment of various factors. The Company considers historical experience, the age of the accounts receivable balances, credit quality of the Company’s customers, current economic conditions and other factors that may affect customers’ ability to pay. Goodwill Goodwill represents the excess of acquisition cost over the fair value of net assets acquired in business combinations. Pursuant to ASC Topic 350, the Company tests goodwill for impairment on an annual basis in the fourth quarter (December 31, 2020), or between annual tests, in certain circumstances. Under authoritative guidance, the Company first assessed qualitative factors to determine whether it was necessary to perform the two-step quantitative goodwill impairment test. An entity is not required to calculate the fair value of a reporting unit unless the entity determines, based on a qualitative assessment, that it is more likely than not that its fair value is less than its carrying amount. Events or changes in circumstances which could trigger an impairment review include macroeconomic conditions, industry and market conditions, cost factors, overall financial performance, other entity specific events and sustained decrease in share price. There were no impairment charges recognized during either of the nine months ended September 30, 2020 and 2019. Intangible Assets Intangible assets include patents, copyrights, intellectual property rights and licensed software. The Company uses the straight-line method to amortize these assets over their estimated useful lives. The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of these assets may not be fully recoverable in accordance with ASC Topic 360. To determine recoverability of its long-lived assets, the Company evaluates the probability that future undiscounted net cash flows, without interest charges, will be less than the carrying amount of the assets. There were no impairment charges recognized during either of the nine months ended September 30, 2020 and 2019. Income Taxes The Company accounts for income taxes under in accordance with ASC Topic 740, “Accounting for Income Taxes.” Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and net operating loss carryforwards. Deferred tax assets and liabilities are measured using expected tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The Company has recorded a full valuation allowance for its net deferred tax assets as of September 30, 2020 and December 31, 2019, due to the uncertainty of the realizability of those assets. Fair Value of Financial Instruments The Company adheres to the provisions of ASC Topic 820, “Fair Value Measurements and Disclosures”. This pronouncement requires that the Company calculate the fair value of financial instruments and include this additional information in the notes to financial statements when the fair value is different than the book value of those financial instruments. The Company’s financial instruments include cash, accounts receivable, accounts payable, accrued expenses and notes payable. As of September 30, 2020 and December 31, 2019, the carrying value of the Company’s financial instruments approximated fair value, due to their short-term nature. Revenue Recognition and Deferred Revenue General The majority of license fees and services revenue are generated from fixed-price and per-scan contracts. Under the per-scan revenue model, customers are charged a fee each time the customer scans an identity document, such as a driver’s license, with the Company’s software. Under the fixed-price revenue model customers are charged a fixed monthly fee either per device or physical business location to access the Company’s software. Under ASC 606, revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration expected to be received in exchange for those goods or services. The Company measures revenue based on the consideration specified in a customer arrangement, and revenue is recognized when the performance obligations in an arrangement are satisfied. A performance obligation is a promise in a contract to transfer a distinct service to the customer. The transaction price of a contract is allocated to each distinct performance obligation and recognized as revenue when or as, the customer receives the benefit of the performance obligation. Customers typically receive the benefit of the Company’s services as they are performed. Substantially all customer contracts provide that the Company is compensated for services performed to date. Invoicing is based on schedules established in customer contracts. Payment terms are generally established from 30 to 60 days from the invoice date. Product returns are recorded as a reduction to revenue. Revenue is measured based on a consideration specified in a contract with a customer, and excludes any sales incentives and amounts collected on behalf of third parties. Revenues are recognized when control of the promised goods or services is transferred to the customer, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Furthermore, the Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer. Nature of goods and services The following is a description of the products and services from which the Company generates revenue, as well as the nature, timing of satisfaction of performance obligations, and significant payment terms for each: Software as a Service (SaaS) Software as a service (SaaS) for hosted subscription services and licensed software allows customers to access a set of data for a predetermined period of time. As the customer obtains access at a point in time but continues to have access for the remainder of the subscription period, the customer is considered to simultaneously receive and consume the benefits provided by the entity’s performance as the entity performs. Accordingly, the revenue should be recognized over time based on the usage of the hosted subscription services and licensed software, which can vary from month to month. The revenue is typically based either on a formula such as number of locations using the service in a given month multiplied by a fee per location or the number of actual scans in a given month multiplied by a set price per scan based on the contract with the customer. Other Subscription and Support Services The Company also recognizes revenues from other subscription and support services, which includes jurisdictional updates to certain commercial customers and support services particularly to its Defense ID® customers. These subscriptions require continuing service or post contractual customer support and performance. As the customer obtains access at a point in time but continues to have access for the remainder of the subscription period, the customer is considered to simultaneously receive and consume the benefits provided by the entity’s performance as the entity performs. Accordingly, the revenue should be recognized over time based on usage, which can vary from month to month. The revenue is typically based on a formula such as number of locations in a given month multiplied by a fee per location. Equipment Revenue Revenue from the sale of equipment is recognized at a point in time. The point in time that the revenue is recognized is when the customer has control of the equipment which is when the customer receives the benefit and the Company’s performance obligation has been satisfied. Depending on the contract terms, that could either be at the time the equipment is shipped or at the time the equipment is received. Non-Recurring Services Revenue The non-recurring services include items such as training, installation, customization, and configuration. The Company recognizes revenue from non-recurring services contracts ratably over the service contract period as the customer consumes the benefit as it is provided and the Company’s performance obligation has been satisfied. Extended Warranty Extended warranty revenues are generated when a warranty is provided to the customer separately of other performance obligations when the equipment is sold. As the customer obtains access at a point in time and continues to have access for the remainder of the warranty term, the customer is considered to simultaneously receive and consume the benefits provided by the Company’s performance as the Company performs. The related revenue is recognized ratably over the specified term of the warranty period. The extended warranty is separate to the Company’s standard warranty of usually one year that it receives from its vendor. Disaggregation of revenue In the following tables, revenue is disaggregated by product and service and the timing of revenue recognition. The table also includes a reconciliation of the disaggregated revenue. For the Three Months Ended September 30, 2020 2019 Products and services Software as a Service (SaaS) $ 2,451,381 $ 1,563,680 Other subscription and support services 36,346 141,798 Equipment 176,061 149,844 Non-recurring services 29,000 61,900 Extended warranties on equipment 5,058 11,674 Other 1,129 1,305 $ 2,698,975 $ 1,930,201 Timing of revenue recognition Products transferred at a point in time $ 177,190 $ 151,149 Services transferred over time 2,521,785 1,779,052 $ 2,698,975 $ 1,930,201 For the Nine Months Ended September 30, 2020 2019 Products and services Software as a Service (SaaS) $ 6,361,150 $ 3,545,587 Other subscription and support services 186,280 566,274 Equipment 1,011,608 337,364 Non-recurring services 70,450 259,945 Extended warranties on equipment 17,232 49,993 Other 9,722 8,023 $ 7,656,442 $ 4,767,186 Timing of revenue recognition Products transferred at a point in time $ 1,021,330 $ 345,387 Services transferred over time 6,635,112 4,421,799 $ 7,656,442 $ 4,767,186 Contract balances The current portion of deferred revenue at September 30, 2020 and December 31, 2019 was $446,411 and $572,391, respectively, and primarily consists of revenue that is recognized over time for software license contracts and hosted subscription services. The changes in these balances are related to the satisfaction or partial satisfaction of these contracts. Of this balance, at December 31, 2019, $84,398 and $542,900 was recognized as revenue for the three and nine months ended September 30, 2020, respectively. The long-term portion of deferred revenue was $10,522 and $13,322 as of September 30, 2020 and December 31, 2019, respectively. The Company did not recognize any material revenue in the current reporting period for performance obligations that were fully satisfied in previous periods. Transaction price allocated to the remaining performance obligations The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period: Remainder 2020 2021 2022 Total Software as a Service (SaaS) $ 240,710 $ 178,997 $ - $ 419,707 Other subscription and support services 6,773 11,094 5,254 23,121 Extended warranties on equipment 3,436 8,099 2,570 14,105 $ 250,919 $ 198,190 $ 7,824 $ 456,933 All consideration from contracts with customers is included in the amounts presented above. Business Concentrations and Credit Risk During the three and nine month periods ended September 30, 2020, the Company made sales to two customers that accounted for approximately 46% and 37% of total revenues, respectively. The revenue was associated with commercial identity sales customers. These customers represented 54% of total accounts receivable at September 30, 2020. During the three and nine month periods ended September 30, 2019, the Company made sales to three customers that accounted for approximately 36% and 34% of total revenues, respectively. The revenue was associated with commercial identity sales customers. Net Income (Loss) Per Share Basic net income (loss) per share is computed by dividing the net income (loss) for the period by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share is computed by dividing the net income (loss) for the period by the weighted average number of shares of common stock and potentially dilutive common stock equivalents outstanding during the period. The dilutive effect of outstanding options, warrants and restricted stock is reflected in diluted earnings per share by application of the treasury stock method. The calculation of diluted net income (loss) per share excludes all anti-dilutive shares. Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Numerator: Net Income (Loss) $ 32,412 $ (568,230 ) $ (701,259 ) $ (2,654,898 ) Denominator: Weighted average common shares – Basic 18,336,107 15,864,004 16,960,770 15,749,312 Dilutive effect of equity incentive plans 428,887 - - - Weighted average common shares – Diluted 18,764,994 15,864,004 16,960,770 15,749,312 Net Income (Loss) per share – Basic $ 0.00 $ (0.04 ) $ (0.04 ) $ (0.17 ) Diluted $ 0.00 $ (0.04 ) $ (0.04 ) $ (0.17 ) The following table summarizes the common stock equivalents excluded from income (loss) per diluted share because their effect would be anti-dilutive due to the net loss: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Stock options - 1,436,623 653,882 1,436,623 Warrants - 204,930 12,680 204,930 Restricted stock - 4,008 4,499 4,008 Performance stock units - - 265,942 - - 1,645,561 937,003 1,645,561 |
Intangible Assets
Intangible Assets | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 3. INTANGIBLE ASSETS The changes in the carrying amount of intangible assets for the nine months ended September 30, 2020 were as follows: Net balance at December 31, 2019 $ 174,237 Addition: Acquisition of software license 400,000 Deduction: Amortization expense (65,401 ) Net balance at September 30, 2020 $ 508,836 The following summarizes amortization of intangible assets included in the accompanying statements of operations: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Cost of sales $ 23,677 $ 26,207 $ 57,696 $ 90,955 General and administrative 2,568 6,877 7,705 20,632 $ 26,245 $ 33,084 $ 65,401 $ 111,587 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt | 4. DEBT Revolving Line of Credit On February 6, 2019, the Company entered into a revolving credit facility with Citibank that allows for borrowings up to the lesser of (i) $2,000,000 or (ii) the collateralized balance in the Company’s existing fixed income investment account with Citibank subject to certain limitations. The facility bears interest at a rate consistent of Citibank’s Base Rate (4.75% at September 30, 2020) minus 2%. Interest is payable monthly and as of September 30, 2020, there were no amounts outstanding and unused availability under this facility was $2,000,000. Promissory Note On April 9, 2020 the Company entered into an unsecured promissory note in the amount of $796,100 (the “Note”) with First Bank (the “Loan Servicer”) under the Paycheck Protection Program (“PPP”) administered by the U.S. Small Business Administration and established as part of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). The Company received these proceeds on April 14, 2020 plus an additional $10,000 advance under the Economic Injury Disaster Loan program on April 15, 2020. Under the terms of the Note, the Company can apply for forgiveness on this Note with the Loan Servicer if certain conditions including the use of the Note proceeds are met over a 24-week period commencing from the date of the Note. The Note has an interest rate of 1%. The Company has not imputed interest on the Note as the rate is determined to be a below-market rate due to the scope exception in ASC 835-30-15-3(e) for government-mandated interest rates. The Note must be repaid within two years originally scheduled to begin November 2020. In October 2020, the Loan Servicer notified the Company that the repayment period was extended to begin in September 2021. If all or a portion of the PPP loan is ultimately forgiven, the Company will record income from the extinguishment of its obligation when it is legally released from being the primary obligor in accordance with ASC 405-20-40-1. At September 30, 2020, the total promissory note was $806,100, of which $44,467 and $761,633 is included in Notes payable, current portion and Note payable, long-term portion, respectively, on the Balance Sheets. |
Accrued Expenses
Accrued Expenses | 9 Months Ended |
Sep. 30, 2020 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | 5. ACCRUED EXPENSES Accrued expenses are comprised of the following: September 30, 2020 December 31, Professional fees $ 123,792 $ 171,331 Payroll and related 755,752 544,441 Incentive bonuses 738,212 632,105 Other 48,748 60,209 $ 1,666,504 $ 1,408,086 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 6. INCOME TAXES The Company’s available net operating loss (“NOL”) at December 31, 2019 was approximately $17 million. The federal and state NOLs incurred in all years through 2017 are available to offset future taxable income and expire from 2020 through 2039 if not utilized. The 2018 and 2019 gross NOLs incurred for the years ended December 31, 2018 and 2019 was approximately $4 million and $2 million, respectively, which can be utilized at 80% with no expiration. The Company has a full valuation allowance on its deferred tax assets since management continues to believe that it is more likely than not that these assets will not be realized. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was enacted in response to the COVID-19 pandemic. The Cares Act, among other things, permits NOL carryovers and carrybacks to offset 100% of taxable income for taxable years beginning before 2021. In addition, the CARES Act allows NOLs incurred in 2018, 2019 and 2020 to be carried back to each of the five preceding taxable years to generate a refund of previously paid income taxes. The change in the law will not have any material cash benefit for the Company. |
Share Based Compensation
Share Based Compensation | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share Based Compensation | 7. SHARE BASED COMPENSATION The Company accounts for the issuance of equity awards to employees in accordance with ASC Topic 718, which requires that the cost resulting from all share-based payment transactions be recognized in the financial statements. This pronouncement establishes fair value as the measurement objective in accounting for share based payment arrangements and requires all companies to apply a fair value based measurement method in accounting for all share based payment transactions with employees. All stock-based compensation is included in operating expenses for the periods as follows: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Compensation cost recognized: Selling, general & administrative $ 88,511 $ 64,290 $ 264,758 $ 497,102 Research & development 8,646 6,753 22,151 16,722 $ 97,157 $ 71,043 $ 286,909 $ 513,824 Stock Options The Company uses the Black-Scholes option pricing model to value the options. The table below presents the weighted average expected life of the options in years. The expected life computation is based on the time to option expiration. Volatility is determined using changes in historical stock prices. The interest rate for periods within the expected life of the award is based on the U.S. Treasury yield curve in effect at the time of grant. Stock option activity under the 2006 and 2015 Stock Option Plans (collectively, the “Plans”) during the periods indicated below were as follows: Number of Weighted- Weighted- Aggregate Outstanding at December 31, 2019 1,421,623 $ 1.78 1.96 years $ 8,113,777 Exercised (767,741 ) 1.18 Outstanding at September 30, 2020 653,882 $ 2.49 2.74 years $ 2,731,240 Exercisable at September 30, 2020 375,967 $ 2.33 2.36 years $ 1,631,859 The aggregate intrinsic value in the table above represents the total pretax intrinsic value (the difference between the Company’s closing stock price on the last trading day of the period and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had they all exercised their options on September 30, 2020. This amount changes based upon the fair market value of the Company’s stock. Restricted Stock Units The Company issues Restricted Stock Units (“RSUs”) which are equity-based instruments that may be settled in shares of common stock of the Company. During the nine months ended September 30, 2020, the Company issued RSUs to its officers as part of their 2019 annual bonuses and to certain directors as compensation. RSU agreements can vest immediately or with the passage of time. The vesting of all RSUs is contingent on continued board and employment services. The compensation expense incurred by the Company for RSUs is based on the closing market price of the Company’s common stock on the date of grant and is amortized ratably on a straight-line basis over the requisite service period and charged to general and administrative expense with a corresponding increase to additional paid-in capital. Number of Weighted Aggregate Outstanding at December 31, 2019 2,670 $ 7.49 $ - Granted 37,101 5.30 Vested and settled in shares (35,272 ) 5.52 Outstanding at September 30, 2020 4,499 $ 6.67 $ - Performance Stock Units On August 7, 2020, the Company issued 265,942 Performance Stock Units (PSUs) to its officers and certain employees as compensation. For these PSU agreements, 50% vest based on the Company’s market price and 50% vest based on its Adjusted EBITDA performance metric. Both the conditions are to occur over a passage of a specified time and is contingent on continued employment services. For the market condition, compensation expense is based on a Geometric Brownian Motion valuation model based on the closing market price of the Company’s common stock on the date of grant and is amortized ratably on a straight-line basis over the requisite period. For the performance condition, the Company reviews the probability of achieving this goal on a periodic basis. If the Company determines that it is probable that the performance criteria will be achieved, the amount of compensation cost derived for this performance metric is amortized over the anticipated service period. If these criteria are not met, no compensation cost is recognized and any previously recognized compensation cost would be reversed. For both conditions, compensation expense is charged to selling, general and administrative and research and development expense with a corresponding increase to additional paid-in capital. Number of Weighted Aggregate Outstanding at December 31, 2019 - $ - $ - Granted 265,942 7.91 Outstanding at September 30, 2020 265,942 $ 7.91 $ - As of September 30, 2020, there was $503,482 of total unrecognized compensation cost, net of estimated forfeitures, related to all unvested stock options, RSUs and PSUs, which is expected to be recognized over a weighted average period of approximately 2.21 years. The Company had 1,259,019 shares available for future grants under the Plans at September 30, 2020. Warrants All previously granted warrants were issued with an exercise price that was equal to or above the fair market value of the Company’s common stock on the date of grant. As of September 30, 2020, the Company had 12,680 warrants outstanding with an exercise price of $2.20 which are exercisable through 2021. During the nine months ended September 30, 2020, there were 50,750 warrants exercised at an exercise price of $2.20 per share. |
Common Stock
Common Stock | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Common Stock | 8. COMMON STOCK On June 23, 2020, the Company completed a public offering of 1,769,230 shares of its common stock, offered to the public at $6.50 per share. Net proceeds to the Company from this offering were approximately $10,710,000 after deducting underwriting discounts and commissions paid by the Company. Direct offering costs totaling approximately $141,000 were recorded as a reduction to the net proceeds and included in additional paid-in-capital on the statement of stockholders’ equity. |
Legal Proceedings
Legal Proceedings | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Proceedings | 9. LEGAL PROCEEDINGS The Company is not aware of any infringement by the Company’s products or technology on the proprietary rights of others. The Company is not currently involved in any legal or regulatory proceeding, or arbitration, the outcome of which is expected to have a material effect on its business. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 10. COMMITMENTS AND CONTINGENCIES The Company leases offices in Melville, New York which require monthly payments of $10,334 and expires March 31, 2021 under an operating lease. The Company determines if an arrangement is a lease at inception. The arrangement is a lease if it conveys the right to the Company to control the use of identified property, plant, or equipment for a period of time in exchange for consideration. This operating lease is included in Operating Lease Right-of-Use (ROU) Asset, Operating Lease Liability, current portion and Operating Lease Liability, long-term portion on the Balance Sheets. The Company recognizes rent and utilities expense for this lease on a straight-line basis over the lease term. ROU assets represent the right to use an underlying asset for the lease term and operating lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As the Company’s lease does not provide an implicit rate, it uses its incremental borrowing rate of 5% based on the commencement date in determining the present value of these lease payments. The Company gives consideration to instruments with similar characteristics when calculating this incremental borrowing rate. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Rent expense which includes utilities was $31,404 and $94,212 for the three and nine months ended September 30, 2020, respectively and cash payments for rent and utilities was $32,892 and $97,718 for the three and nine months ended September 30, 2020, respectively. Rent expense which includes utilities was $31,404 and $94,212 for the three and nine months ended September 30, 2019, respectively and cash payments for rent and utilities was $31,934 and $95,182 for the three and nine months ended September 30, 2019, respectively. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, they do not include all of the information and notes required by generally accepted accounting principles in the United States of America for complete financial statements. In the opinion of management, the unaudited interim financial statements furnished herein include all adjustments necessary for a fair presentation of the Company’s financial position at September 30, 2020 and the results of operations, stockholders’ equity and cash flows for the nine months ended September 30, 2020 and 2019. All such adjustments are of a normal and recurring nature. Interim financial statements are prepared on a basis consistent with the Company’s annual financial statements. Results of operations for the nine-month period ended September 30, 2020, are not necessarily indicative of the operating results that may be expected for the year ending December 31, 2020. The balance sheet as of December 31, 2019 has been derived from the audited financial statements at that date but does not include all of the information and notes required by accounting principles generally accepted in the United States of America (“GAAP”) for complete financial statements. References in this Quarterly Report on Form 10-Q to “authoritative guidance” is to the Accounting Standards Codification issued by the Financial Accounting Standards Board (“FASB”). For further information, refer to the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (“FASB”) issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” |
Use of Estimates | Use of Estimates The preparation of the Company’s financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the Company’s financial statements and accompanying notes. Significant estimates and assumptions that affect amounts reported in the financial statements include impairment consideration and valuation of goodwill and intangible assets, deferred tax valuation allowances, and the fair value of stock options granted under the Company’s stock-based compensation plans. Due to the inherent uncertainties involved in making estimates, actual results reported in future periods may be different from those estimates. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The Company records its allowance for doubtful accounts based upon its assessment of various factors. The Company considers historical experience, the age of the accounts receivable balances, credit quality of the Company’s customers, current economic conditions and other factors that may affect customers’ ability to pay. |
Goodwill | Goodwill Goodwill represents the excess of acquisition cost over the fair value of net assets acquired in business combinations. Pursuant to ASC Topic 350, the Company tests goodwill for impairment on an annual basis in the fourth quarter (December 31, 2020), or between annual tests, in certain circumstances. Under authoritative guidance, the Company first assessed qualitative factors to determine whether it was necessary to perform the two-step quantitative goodwill impairment test. An entity is not required to calculate the fair value of a reporting unit unless the entity determines, based on a qualitative assessment, that it is more likely than not that its fair value is less than its carrying amount. Events or changes in circumstances which could trigger an impairment review include macroeconomic conditions, industry and market conditions, cost factors, overall financial performance, other entity specific events and sustained decrease in share price. There were no impairment charges recognized during either of the nine months ended September 30, 2020 and 2019. |
Intangible Assets | Intangible Assets Intangible assets include patents, copyrights, intellectual property rights and licensed software. The Company uses the straight-line method to amortize these assets over their estimated useful lives. The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of these assets may not be fully recoverable in accordance with ASC Topic 360. To determine recoverability of its long-lived assets, the Company evaluates the probability that future undiscounted net cash flows, without interest charges, will be less than the carrying amount of the assets. There were no impairment charges recognized during either of the nine months ended September 30, 2020 and 2019. |
Income Taxes | Income Taxes The Company accounts for income taxes under in accordance with ASC Topic 740, “Accounting for Income Taxes.” Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and net operating loss carryforwards. Deferred tax assets and liabilities are measured using expected tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The Company has recorded a full valuation allowance for its net deferred tax assets as of September 30, 2020 and December 31, 2019, due to the uncertainty of the realizability of those assets. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company adheres to the provisions of ASC Topic 820, “Fair Value Measurements and Disclosures”. This pronouncement requires that the Company calculate the fair value of financial instruments and include this additional information in the notes to financial statements when the fair value is different than the book value of those financial instruments. The Company’s financial instruments include cash, accounts receivable, accounts payable, accrued expenses and notes payable. As of September 30, 2020 and December 31, 2019, the carrying value of the Company’s financial instruments approximated fair value, due to their short-term nature. |
Revenue Recognition and Deferred Revenue | Revenue Recognition and Deferred Revenue General The majority of license fees and services revenue are generated from fixed-price and per-scan contracts. Under the per-scan revenue model, customers are charged a fee each time the customer scans an identity document, such as a driver’s license, with the Company’s software. Under the fixed-price revenue model customers are charged a fixed monthly fee either per device or physical business location to access the Company’s software. Under ASC 606, revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration expected to be received in exchange for those goods or services. The Company measures revenue based on the consideration specified in a customer arrangement, and revenue is recognized when the performance obligations in an arrangement are satisfied. A performance obligation is a promise in a contract to transfer a distinct service to the customer. The transaction price of a contract is allocated to each distinct performance obligation and recognized as revenue when or as, the customer receives the benefit of the performance obligation. Customers typically receive the benefit of the Company’s services as they are performed. Substantially all customer contracts provide that the Company is compensated for services performed to date. Invoicing is based on schedules established in customer contracts. Payment terms are generally established from 30 to 60 days from the invoice date. Product returns are recorded as a reduction to revenue. Revenue is measured based on a consideration specified in a contract with a customer, and excludes any sales incentives and amounts collected on behalf of third parties. Revenues are recognized when control of the promised goods or services is transferred to the customer, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Furthermore, the Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer. Nature of goods and services The following is a description of the products and services from which the Company generates revenue, as well as the nature, timing of satisfaction of performance obligations, and significant payment terms for each: Software as a Service (SaaS) Software as a service (SaaS) for hosted subscription services and licensed software allows customers to access a set of data for a predetermined period of time. As the customer obtains access at a point in time but continues to have access for the remainder of the subscription period, the customer is considered to simultaneously receive and consume the benefits provided by the entity’s performance as the entity performs. Accordingly, the revenue should be recognized over time based on the usage of the hosted subscription services and licensed software, which can vary from month to month. The revenue is typically based either on a formula such as number of locations using the service in a given month multiplied by a fee per location or the number of actual scans in a given month multiplied by a set price per scan based on the contract with the customer. Other Subscription and Support Services The Company also recognizes revenues from other subscription and support services, which includes jurisdictional updates to certain commercial customers and support services particularly to its Defense ID® customers. These subscriptions require continuing service or post contractual customer support and performance. As the customer obtains access at a point in time but continues to have access for the remainder of the subscription period, the customer is considered to simultaneously receive and consume the benefits provided by the entity’s performance as the entity performs. Accordingly, the revenue should be recognized over time based on usage, which can vary from month to month. The revenue is typically based on a formula such as number of locations in a given month multiplied by a fee per location. Equipment Revenue Revenue from the sale of equipment is recognized at a point in time. The point in time that the revenue is recognized is when the customer has control of the equipment which is when the customer receives the benefit and the Company’s performance obligation has been satisfied. Depending on the contract terms, that could either be at the time the equipment is shipped or at the time the equipment is received. Non-Recurring Services Revenue The non-recurring services include items such as training, installation, customization, and configuration. The Company recognizes revenue from non-recurring services contracts ratably over the service contract period as the customer consumes the benefit as it is provided and the Company’s performance obligation has been satisfied. Extended Warranty Extended warranty revenues are generated when a warranty is provided to the customer separately of other performance obligations when the equipment is sold. As the customer obtains access at a point in time and continues to have access for the remainder of the warranty term, the customer is considered to simultaneously receive and consume the benefits provided by the Company’s performance as the Company performs. The related revenue is recognized ratably over the specified term of the warranty period. The extended warranty is separate to the Company’s standard warranty of usually one year that it receives from its vendor. Disaggregation of revenue In the following tables, revenue is disaggregated by product and service and the timing of revenue recognition. The table also includes a reconciliation of the disaggregated revenue. For the Three Months Ended September 30, 2020 2019 Products and services Software as a Service (SaaS) $ 2,451,381 $ 1,563,680 Other subscription and support services 36,346 141,798 Equipment 176,061 149,844 Non-recurring services 29,000 61,900 Extended warranties on equipment 5,058 11,674 Other 1,129 1,305 $ 2,698,975 $ 1,930,201 Timing of revenue recognition Products transferred at a point in time $ 177,190 $ 151,149 Services transferred over time 2,521,785 1,779,052 $ 2,698,975 $ 1,930,201 For the Nine Months Ended September 30, 2020 2019 Products and services Software as a Service (SaaS) $ 6,361,150 $ 3,545,587 Other subscription and support services 186,280 566,274 Equipment 1,011,608 337,364 Non-recurring services 70,450 259,945 Extended warranties on equipment 17,232 49,993 Other 9,722 8,023 $ 7,656,442 $ 4,767,186 Timing of revenue recognition Products transferred at a point in time $ 1,021,330 $ 345,387 Services transferred over time 6,635,112 4,421,799 $ 7,656,442 $ 4,767,186 Contract balances The current portion of deferred revenue at September 30, 2020 and December 31, 2019 was $446,411 and $572,391, respectively, and primarily consists of revenue that is recognized over time for software license contracts and hosted subscription services. The changes in these balances are related to the satisfaction or partial satisfaction of these contracts. Of this balance, at December 31, 2019, $84,398 and $542,900 was recognized as revenue for the three and nine months ended September 30, 2020, respectively. The long-term portion of deferred revenue was $10,522 and $13,322 as of September 30, 2020 and December 31, 2019, respectively. The Company did not recognize any material revenue in the current reporting period for performance obligations that were fully satisfied in previous periods. Transaction price allocated to the remaining performance obligations The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period: Remainder 2020 2021 2022 Total Software as a Service (SaaS) $ 240,710 $ 178,997 $ - $ 419,707 Other subscription and support services 6,773 11,094 5,254 23,121 Extended warranties on equipment 3,436 8,099 2,570 14,105 $ 250,919 $ 198,190 $ 7,824 $ 456,933 All consideration from contracts with customers is included in the amounts presented above. |
Business Concentrations and Credit Risk | Business Concentrations and Credit Risk During the three and nine month periods ended September 30, 2020, the Company made sales to two customers that accounted for approximately 46% and 37% of total revenues, respectively. The revenue was associated with commercial identity sales customers. These customers represented 54% of total accounts receivable at September 30, 2020. During the three and nine month periods ended September 30, 2019, the Company made sales to three customers that accounted for approximately 36% and 34% of total revenues, respectively. The revenue was associated with commercial identity sales customers. |
Net Income (Loss) Per Share | Net Income (Loss) Per Share Basic net income (loss) per share is computed by dividing the net income (loss) for the period by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share is computed by dividing the net income (loss) for the period by the weighted average number of shares of common stock and potentially dilutive common stock equivalents outstanding during the period. The dilutive effect of outstanding options, warrants and restricted stock is reflected in diluted earnings per share by application of the treasury stock method. The calculation of diluted net income (loss) per share excludes all anti-dilutive shares. Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Numerator: Net Income (Loss) $ 32,412 $ (568,230 ) $ (701,259 ) $ (2,654,898 ) Denominator: Weighted average common shares – Basic 18,336,107 15,864,004 16,960,770 15,749,312 Dilutive effect of equity incentive plans 428,887 - - - Weighted average common shares – Diluted 18,764,994 15,864,004 16,960,770 15,749,312 Net Income (Loss) per share – Basic $ 0.00 $ (0.04 ) $ (0.04 ) $ (0.17 ) Diluted $ 0.00 $ (0.04 ) $ (0.04 ) $ (0.17 ) The following table summarizes the common stock equivalents excluded from income (loss) per diluted share because their effect would be anti-dilutive due to the net loss: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Stock options - 1,436,623 653,882 1,436,623 Warrants - 204,930 12,680 204,930 Restricted stock - 4,008 4,499 4,008 Performance stock units - - 265,942 - - 1,645,561 937,003 1,645,561 |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Disaggregation of Revenue | In the following tables, revenue is disaggregated by product and service and the timing of revenue recognition. The table also includes a reconciliation of the disaggregated revenue. For the Three Months Ended September 30, 2020 2019 Products and services Software as a Service (SaaS) $ 2,451,381 $ 1,563,680 Other subscription and support services 36,346 141,798 Equipment 176,061 149,844 Non-recurring services 29,000 61,900 Extended warranties on equipment 5,058 11,674 Other 1,129 1,305 $ 2,698,975 $ 1,930,201 Timing of revenue recognition Products transferred at a point in time $ 177,190 $ 151,149 Services transferred over time 2,521,785 1,779,052 $ 2,698,975 $ 1,930,201 For the Nine Months Ended September 30, 2020 2019 Products and services Software as a Service (SaaS) $ 6,361,150 $ 3,545,587 Other subscription and support services 186,280 566,274 Equipment 1,011,608 337,364 Non-recurring services 70,450 259,945 Extended warranties on equipment 17,232 49,993 Other 9,722 8,023 $ 7,656,442 $ 4,767,186 Timing of revenue recognition Products transferred at a point in time $ 1,021,330 $ 345,387 Services transferred over time 6,635,112 4,421,799 $ 7,656,442 $ 4,767,186 |
Schedule of Revenue Performance Obligation | The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period: Remainder 2020 2021 2022 Total Software as a Service (SaaS) $ 240,710 $ 178,997 $ - $ 419,707 Other subscription and support services 6,773 11,094 5,254 23,121 Extended warranties on equipment 3,436 8,099 2,570 14,105 $ 250,919 $ 198,190 $ 7,824 $ 456,933 |
Schedule of Earnings Per Share Basic and Diluted | The calculation of diluted net income (loss) per share excludes all anti-dilutive shares. Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Numerator: Net Income (Loss) $ 32,412 $ (568,230 ) $ (701,259 ) $ (2,654,898 ) Denominator: Weighted average common shares – Basic 18,336,107 15,864,004 16,960,770 15,749,312 Dilutive effect of equity incentive plans 428,887 - - - Weighted average common shares – Diluted 18,764,994 15,864,004 16,960,770 15,749,312 Net Income (Loss) per share – Basic $ 0.00 $ (0.04 ) $ (0.04 ) $ (0.17 ) Diluted $ 0.00 $ (0.04 ) $ (0.04 ) $ (0.17 ) |
Summary of Common Stock Equivalents Excluded from Loss Per Diluted Share | The following table summarizes the common stock equivalents excluded from income (loss) per diluted share because their effect would be anti-dilutive due to the net loss: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Stock options - 1,436,623 653,882 1,436,623 Warrants - 204,930 12,680 204,930 Restricted stock - 4,008 4,499 4,008 Performance stock units - - 265,942 - - 1,645,561 937,003 1,645,561 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | The changes in the carrying amount of intangible assets for the nine months ended September 30, 2020 were as follows: Net balance at December 31, 2019 $ 174,237 Addition: Acquisition of software license 400,000 Deduction: Amortization expense (65,401 ) Net balance at September 30, 2020 $ 508,836 |
Schedule of Finite-Lived Intangible Assets Amortization Expense | The following summarizes amortization of intangible assets included in the accompanying statements of operations: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Cost of sales $ 23,677 $ 26,207 $ 57,696 $ 90,955 General and administrative 2,568 6,877 7,705 20,632 $ 26,245 $ 33,084 $ 65,401 $ 111,587 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses are comprised of the following: September 30, 2020 December 31, Professional fees $ 123,792 $ 171,331 Payroll and related 755,752 544,441 Incentive bonuses 738,212 632,105 Other 48,748 60,209 $ 1,666,504 $ 1,408,086 |
Share Based Compensation (Table
Share Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock Based Compensation | All stock-based compensation is included in operating expenses for the periods as follows: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Compensation cost recognized: Selling, general & administrative $ 88,511 $ 64,290 $ 264,758 $ 497,102 Research & development 8,646 6,753 22,151 16,722 $ 97,157 $ 71,043 $ 286,909 $ 513,824 |
Schedule of Stock Option Activity | Stock option activity under the 2006 and 2015 Stock Option Plans (collectively, the “Plans”) during the periods indicated below were as follows: Number of Weighted- Weighted- Aggregate Outstanding at December 31, 2019 1,421,623 $ 1.78 1.96 years $ 8,113,777 Exercised (767,741 ) 1.18 Outstanding at September 30, 2020 653,882 $ 2.49 2.74 years $ 2,731,240 Exercisable at September 30, 2020 375,967 $ 2.33 2.36 years $ 1,631,859 |
Schedule of Restricted Stock Units Outstanding | The compensation expense incurred by the Company for RSUs is based on the closing market price of the Company’s common stock on the date of grant and is amortized ratably on a straight-line basis over the requisite service period and charged to general and administrative expense with a corresponding increase to additional paid-in capital. Number of Weighted Aggregate Outstanding at December 31, 2019 2,670 $ 7.49 $ - Granted 37,101 5.30 Vested and settled in shares (35,272 ) 5.52 Outstanding at September 30, 2020 4,499 $ 6.67 $ - |
Schedule of Performance Stock Units | Number of Weighted Aggregate Outstanding at December 31, 2019 - $ - $ - Granted 265,942 7.91 Outstanding at September 30, 2020 265,942 $ 7.91 $ - |
Nature of Business (Details Nar
Nature of Business (Details Narrative) - USD ($) | Jun. 23, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 |
Number of patents, description | Intellicheck continues to develop and release innovative products based upon its rich patent portfolio consisting of twenty issued patents and four pending patents. | |||||
Net loss | $ 32,412 | $ (568,230) | $ (701,259) | $ (2,654,898) | ||
Net cash used in operating activities | (310,922) | $ (2,089,687) | ||||
Cash | 12,812,322 | 12,812,322 | $ 3,350,853 | |||
Working capital | 12,736,959 | 12,736,959 | ||||
Accumulated deficit | $ (117,636,371) | $ (117,636,371) | $ (116,935,112) | |||
Public Offering [Member] | ||||||
Number of common stock shares issued | 1,769,230 | |||||
Shares issued price per share | $ 6.50 | |||||
Proceeds from offering | $ 10,570,000 |
Significant Accounting Polici_4
Significant Accounting Policies (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Accounting Policies [Line Items] | |||||
Goodwill Impairment charges | |||||
Impairment charges on intangible assets | |||||
Deferred revenue, current portion | $ 446,411 | 446,411 | $ 572,391 | ||
Recognized deferred revenue | 84,398 | 542,900 | |||
Deferred revenue, non current portion | $ 10,522 | $ 10,522 | $ 13,322 | ||
Two Customers [Member] | Sales Revenue, Net [Member] | |||||
Accounting Policies [Line Items] | |||||
Percentage of credit risk | 46.00% | 37.00% | |||
Two Customers [Member] | Accounts Receivable [Member] | |||||
Accounting Policies [Line Items] | |||||
Percentage of credit risk | 54.00% | ||||
Three Customers [Member] | Sales Revenue, Net [Member] | |||||
Accounting Policies [Line Items] | |||||
Percentage of credit risk | 36.00% | 34.00% |
Significant Accounting Polici_5
Significant Accounting Policies - Schedule of Disaggregation of Revenue (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenues | $ 2,698,975 | $ 1,930,201 | $ 7,656,442 | $ 4,767,186 |
Products Transferred at a Point in Time [Member] | ||||
Revenues | 177,190 | 151,149 | 1,021,330 | 345,387 |
Services Transferred Over Time [Member] | ||||
Revenues | 2,521,785 | 1,779,052 | 6,635,112 | 4,421,799 |
Software as a Service (SaaS) [Member] | ||||
Revenues | 2,451,381 | 1,563,680 | 6,361,150 | 3,545,587 |
Other Subscription and Support Services [Member] | ||||
Revenues | 36,346 | 141,798 | 186,280 | 566,274 |
Equipment [Member] | ||||
Revenues | 176,061 | 149,844 | 1,011,608 | 337,364 |
Non-Recurring Services [Member] | ||||
Revenues | 29,000 | 61,900 | 70,450 | 259,945 |
Extended Warranties on Equipment [Member] | ||||
Revenues | 5,058 | 11,674 | 17,232 | 49,993 |
Other [Member] | ||||
Revenues | $ 1,129 | $ 1,305 | $ 9,722 | $ 8,023 |
Significant Accounting Polici_6
Significant Accounting Policies - Schedule of Revenue Performance Obligation (Details) | Sep. 30, 2020USD ($) |
Revenue remaining performance obligations | $ 456,933 |
Software as a Service (SaaS) [Member] | |
Revenue remaining performance obligations | 419,707 |
Other Subscription and Support Services [Member] | |
Revenue remaining performance obligations | 23,121 |
Extended Warranties on Equipment [Member] | |
Revenue remaining performance obligations | 14,105 |
Remainder 2020 [Member] | |
Revenue remaining performance obligations | 250,919 |
Remainder 2020 [Member] | Software as a Service (SaaS) [Member] | |
Revenue remaining performance obligations | 240,710 |
Remainder 2020 [Member] | Other Subscription and Support Services [Member] | |
Revenue remaining performance obligations | 6,773 |
Remainder 2020 [Member] | Extended Warranties on Equipment [Member] | |
Revenue remaining performance obligations | 3,436 |
2021 [Member] | |
Revenue remaining performance obligations | 198,190 |
2021 [Member] | Software as a Service (SaaS) [Member] | |
Revenue remaining performance obligations | 178,997 |
2021 [Member] | Other Subscription and Support Services [Member] | |
Revenue remaining performance obligations | 11,094 |
2021 [Member] | Extended Warranties on Equipment [Member] | |
Revenue remaining performance obligations | 8,099 |
2022 [Member] | |
Revenue remaining performance obligations | 7,824 |
2022 [Member] | Software as a Service (SaaS) [Member] | |
Revenue remaining performance obligations | |
2022 [Member] | Other Subscription and Support Services [Member] | |
Revenue remaining performance obligations | 5,254 |
2022 [Member] | Extended Warranties on Equipment [Member] | |
Revenue remaining performance obligations | $ 2,570 |
Significant Accounting Polici_7
Significant Accounting Policies - Schedule of Earnings Per Share Basic and Diluted (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Accounting Policies [Abstract] | ||||
Net Income (Loss) | $ 32,412 | $ (568,230) | $ (701,259) | $ (2,654,898) |
Weighted average common shares - Basic | 18,336,107 | 15,864,004 | 16,960,770 | 15,749,312 |
Dilutive effect of equity incentive plans | 428,887 | |||
Weighted average common shares - Diluted | 18,764,994 | 15,864,004 | 16,960,770 | 15,749,312 |
Net Income (Loss) per share - Basic | $ 0 | $ (0.04) | $ (0.04) | $ (0.17) |
Net Income (Loss) per share - Diluted | $ 0 | $ (0.04) | $ (0.04) | $ (0.17) |
Significant Accounting Polici_8
Significant Accounting Policies - Summary of Common Stock Equivalents Excluded from Loss Per Diluted Share (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share amount | 1,645,561 | 937,003 | 1,645,561 | |
Stock Options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share amount | 1,436,623 | 653,882 | 1,436,623 | |
Warrants [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share amount | 204,930 | 12,680 | 204,930 | |
Restricted Stock [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share amount | 4,008 | 4,499 | 4,008 | |
Performance Stock Units [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share amount | 265,942 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Net balance at December 31, 2019 | $ 174,237 | |||
Addition: Acquisition of software license | 400,000 | |||
Deduction: Amortization expense | $ (26,245) | $ (33,084) | (65,401) | $ (111,587) |
Net balance at September 30, 2020 | $ 508,836 | $ 508,836 |
Intangible Assets - Schedule _2
Intangible Assets - Schedule of Finite-Lived Intangible Assets Amortization Expense (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Amortization of intangible assets | $ 26,245 | $ 33,084 | $ 65,401 | $ 111,587 |
Cost of Sales [Member] | ||||
Amortization of intangible assets | 23,677 | 26,207 | 57,696 | 90,955 |
General and Administrative [Member] | ||||
Amortization of intangible assets | $ 2,568 | $ 6,877 | $ 7,705 | $ 20,632 |
Debt (Details Narrative)
Debt (Details Narrative) - USD ($) | Apr. 14, 2020 | Apr. 09, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Feb. 06, 2019 |
Line of Credit Facility [Line Items] | ||||||
Line of credit facility, unused availability | $ 2,000,000 | |||||
Proceeds from unsecured promissory note payable | 806,100 | |||||
Promissory note | 806,100 | |||||
Note payable, current portion | 44,467 | |||||
Note payable, long-term portion | $ 761,633 | |||||
First Bank [Member] | Paycheck Protection Program [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Unsecured promissory note payable | $ 796,100 | |||||
Proceeds from unsecured promissory note payable | $ 10,000 | |||||
Note maturity term description | Under the terms of the Note, the Company can apply for forgiveness on this Note with the Loan Servicer if certain conditions including the use of the Note proceeds are met over a 24-week period commencing from the date of the Note. | |||||
Note interest rate | 1.00% | |||||
Revolving Credit Facility [Member] | Citi Bank [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 2,000,000 | |||||
Revolving Credit Facility [Member] | Northwest Bank [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Percentage of line of credit interest | 4.75% | |||||
Line of credit facility, interest rate description | The facility bears interest at a rate consistent of Citibank's Base Rate (4.75% at September 30, 2020) minus 2%. |
Accrued Expenses - Schedule of
Accrued Expenses - Schedule of Accrued Expenses (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Payables and Accruals [Abstract] | ||
Professional fees | $ 123,792 | $ 171,331 |
Payroll and related | 755,752 | 544,441 |
Incentive bonuses | 738,212 | 632,105 |
Other | 48,748 | 60,209 |
Accrued expenses | $ 1,666,504 | $ 1,408,086 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) | 2 Months Ended | 9 Months Ended | ||
Mar. 27, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Net operating loss carryforwards | $ 17,000,000 | |||
Operating loss carryforwards expiration term | Expire from 2020 through 2039 | |||
Net operating loss carryforwards, gross | $ 2,000,000 | $ 4,000,000 | ||
Percentage of operating loss | 80.00% | |||
Income tax, description | The Cares Act, among other things, permits NOL carryovers and carrybacks to offset 100% of taxable income for taxable years beginning before 2021. In addition, the CARES Act allows NOLs incurred in 2018, 2019 and 2020 to be carried back to each of the five preceding taxable years to generate a refund of previously paid income taxes. |
Share Based Compensation (Detai
Share Based Compensation (Details Narrative) - USD ($) | Aug. 07, 2020 | Sep. 30, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Class of warrant or right, outstanding | 12,680 | |
Warrants exercisable description | The Company had 12,680 warrants outstanding with an exercise price of $2.20 which are exercisable through 2021. | |
Warrants exercise price | $ 2.20 | |
Number of warrants exercised | 50,750 | |
Performance Stock Units (PSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized to officers and employees compensation | $ 265,942 | |
Shares vested percentage | 50.00% | |
Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized to officers and employees compensation | $ 503,482 | |
Recognized over weight average period | 2 years 2 months 16 days | |
Share options available for future grants | 1,259,019 |
Share Based Compensation - Sche
Share Based Compensation - Schedule of Stock Based Compensation (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based compensation expense | $ 97,157 | $ 71,043 | $ 286,909 | $ 513,824 |
Selling, General and Administrative [Member] | ||||
Share-based compensation expense | 88,511 | 64,290 | 264,758 | 497,102 |
Research and Development [Member] | ||||
Share-based compensation expense | $ 8,646 | $ 6,753 | $ 22,151 | $ 16,722 |
Share Based Compensation - Sc_2
Share Based Compensation - Schedule of Stock Option Activity (Details) - Stock Option Plans [Member] | 9 Months Ended |
Sep. 30, 2020USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Shares Subject to Issuance, Outstanding, Beginning Balance | shares | 1,421,623 |
Number of Shares Subject to Issuance, Exercised | shares | (767,741) |
Number of Shares Subject to Issuance, Outstanding, Ending Balance | shares | 653,882 |
Number of Shares Subject to Issuance, Exercisable, Ending Balance | shares | 375,967 |
Weighted-average Exercise Price, Outstanding, Beginning Balance | $ / shares | $ 1.78 |
Weighted-average Exercise Price, Exercised | $ / shares | 1.18 |
Weighted-average Exercise Price, Outstanding, Ending Balance | $ / shares | 2.49 |
Weighted-average Exercise Price, Exercisable, Ending Balance | $ / shares | $ 2.33 |
Weighted-average Remaining Contractual Term, Outstanding Beginning Balance | 1 year 11 months 15 days |
Weighted-average Remaining Contractual Term, Outstanding, Ending Balance | 2 years 8 months 26 days |
Weighted-average Remaining Contractual Term, Exercisable | 2 years 4 months 9 days |
Aggregate Intrinsic Value, Outstanding, Beginning Balance | $ | $ 8,113,777 |
Aggregate Intrinsic Value, Outstanding, Ending Balance | $ | 2,731,240 |
Aggregate Intrinsic Value, Outstanding, Exercisable, Ending Balance | $ | $ 1,631,859 |
Share Based Compensation - Sc_3
Share Based Compensation - Schedule of Restricted Stock Units Outstanding (Details) - Restricted Stock Units (RSUs) [Member] | 9 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Number of Shares, Outstanding, Beginning Balance | shares | 2,670 |
Number of Shares, Granted | shares | 37,101 |
Number of Shares, Vested and settled in shares | shares | (35,272) |
Number of Shares, Outstanding, Ending Balance | shares | 4,499 |
Weighted Average Grant Date Fair Value, Outstanding, Beginning Balance | $ 7.49 |
Weighted Average Grant Date Fair Value, Granted | 5.30 |
Weighted Average Grant Date Fair Value, Vested and settled in shares | 5.52 |
Weighted Average Grant Date Fair Value, Outstanding, Ending Balance | 6.67 |
Aggregate Intrinsic Value Outstanding, Beginning Balance | |
Aggregate Intrinsic Value Outstanding, Ending Balance |
Share Based Compensation - Sc_4
Share Based Compensation - Schedule of Performance Stock Units (Details) - Performance Stock Units (PSUs) [Member] | 9 Months Ended |
Sep. 30, 2020USD ($)$ / sharesshares | |
Number of Shares, Outstanding, Beginning Balance | shares | |
Number of Shares, Granted | shares | 265,942 |
Number of Shares, Outstanding, Ending Balance | shares | 265,942 |
Weighted Average Grant Date Fair Value, Outstanding, Beginning Balance | $ / shares | |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 7.91 |
Weighted Average Grant Date Fair Value, Outstanding, Ending Balance | $ / shares | $ 7.91 |
Aggregate Intrinsic Value Outstanding, Beginning Balance | $ | |
Aggregate Intrinsic Value Outstanding, Ending Balance | $ |
Common Stock (Details Narrative
Common Stock (Details Narrative) - Initial Public Offering [Member] | Jun. 23, 2020USD ($)$ / sharesshares |
Number of common stock shares issued | shares | 1,769,230 |
Shares issued price per share | $ / shares | $ 6.50 |
Proceeds from offering | $ 10,710,000 |
Direct offering costs | $ 141,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Commitments And contingencies [Line Items] | ||||
Operating lease incremental borrowing rate, percentage | 5.00% | 5.00% | ||
Utilities [Member] | ||||
Commitments And contingencies [Line Items] | ||||
Operating lease, rent payments | $ 31,404 | $ 31,404 | $ 94,212 | $ 94,212 |
Cash payment for rent and utility | $ 32,892 | $ 31,934 | 97,718 | $ 95,182 |
Melville, New York [Member] | ||||
Commitments And contingencies [Line Items] | ||||
Operating lease, rent payments | $ 10,334 | |||
Lease expiration | Mar. 31, 2021 |