Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 12, 2019 | Jun. 30, 2018 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Liberated Syndication Inc. | ||
Entity Central Index Key | 0001667489 | ||
Amendment Flag | true | ||
Amendment Description | This Annual Report on Form 10-K/A (Amendment No. 3) amends the Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) by Liberated Syndication Corp. (the “Company”) on March 14, 2019 and as amended by Amendment No. 1 thereto filed with the SEC on April 19, 2019 and Amendment No. 2 thereto filed with the SEC on May 5, 2020 (as so amended, the “Original 10-K”) to modify the determinations by our certifying officers as to the effectiveness of our disclosure controls and procedures and internal controls over financial reporting as of the end of the reporting period covered by the Original 10-K and to include additional signatures inadvertently omitted from the Original 10-K. For the convenience of the reader, this Form 10-K/A sets forth the Original Filing, in its entirety, as amended as indicated above, all other information in the Original 10-K remains unchanged. | ||
Document Type | 10-K/A | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Emerging Growth Company | true | ||
EntityExTransitionPeriod | true | ||
Entity Small Business | true | ||
Entity Shell Company | false | ||
Entity Current Reporting Status | Yes | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Common Stock, Shares Outstanding | 29,721,974 | ||
Entity Public Float | $ 37,782,893 | ||
Entity File Number | 000-55779 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
CURRENT ASSETS: | ||
Cash | $ 11,079,941 | $ 5,211,845 |
Accounts receivable, net | 481,921 | 660,139 |
Prepaid expenses | 449,223 | 186,425 |
Total current assets | 12,011,085 | 6,058,409 |
Property and equipment, net | 2,229,294 | 3,007,025 |
Goodwill | 16,388,171 | 16,352,069 |
Definite life - intangible | 7,786,686 | 9,644,000 |
Prepaid expense | 191,609 | 7,076 |
Deferred tax assets | 1,454,077 | 0 |
Total assets | 40,060,922 | 35,068,579 |
CURRENT LIABILITIES: | ||
Accounts payable | 745,889 | 440,565 |
Income tax payable | 868,529 | 0 |
Accrued expenses | 377,572 | 769,485 |
Deferred revenue, net of current portion | 2,276,079 | 1,247,686 |
Current portion of capital lease obligation | 72,986 | 69,243 |
Current portion of loans payable, net of $28,068 and $33,366 discount, respectively | 2,638,599 | 1,566,634 |
Total current liabilities | 6,979,654 | 4,093,613 |
Loans payable, net of $51,566 and $79,634 discount, less current portion | 5,681,767 | 8,320,366 |
Capital lease obligation, net of current portion | 831 | 73,817 |
Deferred revenue, net | 371,938 | 133,617 |
Total long-term liabilities | 6,054,536 | 8,527,800 |
Total liabilities | 13,034,190 | 12,621,413 |
COMMITMENTS & CONTINGENCIES | ||
STOCKHOLDERS' EQUITY | ||
Common stock | 29,722 | 29,596 |
Additional paid-in capital | 35,010,552 | 34,804,457 |
Accumulated deficit | (8,013,542) | (12,386,887) |
Total stockholders' equity | 27,026,732 | 22,447,166 |
Total liabilities and stockholders' equity | $ 40,060,922 | $ 35,068,579 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 14,000 | $ 14,000 |
Common stock authorized | 200,000,000 | 200,000,000 |
Common stock par value | $ .001 | $ 0.001 |
Common stock outstanding | 29,721,974 | 29,595,473 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | ||
Revenue | $ 22,010,132 | $ 10,584,219 |
Costs and operating expenses | ||
Cost of revenue (excluding depreciation and amortization) | 3,331,876 | 2,379,151 |
General and administrative | 6,065,661 | 10,263,775 |
Technology | 1,842,020 | 610,794 |
Selling | 846,434 | 299,074 |
Customer support | 2,830,789 | 191,820 |
Depreciation and amortization | 3,013,732 | 22,033 |
Total costs and operating expenses | 17,930,512 | 13,766,647 |
Operating income (loss) | 4,079,620 | (3,182,428) |
Interest expense | (387,064) | 0 |
Interest income | 84,992 | 0 |
Other income (expense) | 10,249 | 33 |
Income (loss) from operations before income taxes | 3,787,797 | (3,182,395) |
Income tax expense (benefit) | (585,548) | 0 |
Net Income (loss) | $ 4,373,345 | $ (3,182,395) |
BASIC AND DILUTED INCOME (LOSS) PER COMMON SHARE | $ .15 | $ (0.13) |
BASIC AND DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | 29,740,207 | 24,390,595 |
STATEMENT OF STOCKHOLDERS' EQUI
STATEMENT OF STOCKHOLDERS' EQUITY (AS RESTATED) - USD ($) | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Deficit [Member] |
Balance, amount at Dec. 31, 2016 | $ 20,806 | $ 25,047,247 | $ (9,204,492) |
Balance, shares at Dec. 31, 2016 | 20,805,860 | ||
Issuance of Common Stock for services, amount | $ 7,250 | 7,266,750 | |
Issuance of Common Stock for services, shares | 7,250,000 | ||
Repurchase of Common Stock, amount | $ (40) | (7,960) | |
Repurchase of Common Stock, shares | (40,000) | ||
Issuance of Common Stock to acquire Pair Networks Inc., amount | $ 1,580 | 2,498,420 | |
Issuance of Common Stock to acquire Pair Networks Inc., shares | 1,579,613 | ||
Net income (loss) | (3,182,395) | ||
Balance, amount at Dec. 31, 2017 | $ 29,596 | 34,804,457 | (12,386,887) |
Balance, shares at Dec. 31, 2017 | 29,595,473 | ||
Issuance of Common Stock for services, amount | $ 200 | 317,800 | |
Issuance of Common Stock for services, shares | 200,000 | ||
Repurchase of Common Stock, amount | $ (55) | (82,445) | |
Repurchase of Common Stock, shares | (55,000) | ||
Return of Common Stock for final settlement of Pair Acquisition, amount | $ (19) | (29,260) | |
Return of Common Stock for final settlement of Pair Acquisition, shares | (18,499) | ||
Net income (loss) | 4,373,345 | ||
Balance, amount at Dec. 31, 2018 | $ 29,722 | $ 35,010,552 | $ (8,013,542) |
Balance, shares at Dec. 31, 2018 | 29,721,974 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flows from Operating Activities | ||
Net income (loss) | $ 4,373,345 | $ (3,182,395) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 3,013,732 | 22,033 |
Issuance of common stock for services | 318,000 | 7,274,000 |
Deferred income taxes | (1,454,077) | 0 |
Amortization of discount on loan fees | 33,366 | 0 |
Change in assets and liabilities: | ||
Accounts receivable | 112,838 | (184,874) |
Prepaid expenses | (447,332) | (70,289) |
Accounts payable | 305,324 | (319,483) |
Income taxes payable | 868,529 | 0 |
Accrued expense | (391,913) | 66,586 |
Deferred revenue | 1,266,714 | (18,174) |
Net Cash Provided by Operating Activities | 7,998,526 | 3,587,404 |
Cash Flows from Investing Activities: | ||
Purchase of property & equipment | (378,687) | (69,064) |
Acquisition of Pair Networks Inc., net of cash acquired | 0 | (13,060,953) |
Net Cash Used in Investing Activities | (378,687) | (13,130,017) |
Cash Flows from Financing Activities: | ||
Re-purchase of common stock | (82,500) | (8,000) |
Proceeds from loan | 0 | 10,000,000 |
Payment of debt issuance costs | 0 | (113,000) |
Repayment on term loan | (1,600,000) | 0 |
Repayment on capital lease | (69,243) | 0 |
Net Cash Used in Financing Activities | (1,751,743) | 9,879,000 |
Net Increase in Cash and Cash Equivalents | 5,868,096 | 336,387 |
Cash and Cash Equivalents at Beginning of Period | 5,211,845 | 4,875,458 |
Cash and Cash Equivalents at End of Period | 11,079,941 | 5,211,845 |
Supplemental Disclosures of Cash Flow Information | ||
Cash paid during the periods for: Interest | 350,761 | 0 |
Cash paid during the periods for: Income taxes | $ 0 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Organization On December 27, 2017, the Company purchased all the issued and outstanding shares of Pair Networks Inc., (“Pair”), a Pennsylvania corporation, and subsidiaries Ryousha Kokusai, LLC (Ryousha) and 660837NB, Inc. (NB), in a transaction accounted for as a purchase. Pair Networks Inc. provides web hosting services and domain name registrations. Services include shared web hosting, e-commerce, fully-managed virtual private and dedicated servers, customer self-managed dedicated servers, domain-name registration, co-location and content-delivery networks. Pair began operations in August 1995. It incorporated in the state of Pennsylvania in August 1998. Pair’s principal operations are conducted on-site in Pittsburgh, PA. Pair also has an operating site in Denver, Colorado, and a remote site back-up location in Pittsburgh, PA. Ryousha Kokusai, LLC (dba Pair International), a wholly owned single-member limited liability company subsidiary of Pair, was formed on January 1, 2015. The Value Added Tax(VAT) for sales to European Union countries subject to the VAT in Europe are paid through Ryousha Kokusai LLC. There are no operating activities conducted by Ryousha. NB, a Canadian Company was organized on December 2, 2011. NB is used solely for holding the Canadian tradenames and domain names of Pair. There are no operating activities conducted by NB. Principles of Consolidation Accounting Estimates Our more significant estimates include: · the fair value of assets acquired, and liabilities assumed in business acquisitions; · the assessment of recoverability of long-lived assets, including property and equipment, goodwill and intangible assets; · the estimated reserve for refunds; · the estimated useful lives of intangible and depreciable assets; · the grant date fair value of equity-based awards; · the recognition, measurement, and valuation of current and deferred income taxes; We periodically evaluate these estimates and adjust prospectively, if necessary. We believe our estimates and assumptions are reasonable; however, actual results may differ from our estimates. Cash and Cash Equivalents Concentration of Credit Risk Accounts Receivable Registry Deposits - Prepaid Domain Name Registry Fees - Property and Equipment Definite-Life Intangible Assets Software Development Costs Debt Issuance Costs - Goodwill Advertising Costs Fair Value of Financial Instruments • Level 1. Observable inputs such as quoted prices in active markets for identical assets or liabilities; • Level 2. Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and • Level 3. Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. Unless otherwise disclosed, the fair value of the Company’s financial instruments including cash, accounts receivable, prepaid expenses, and accounts payable, deferred revenue and accrued expenses approximates their recorded values due to their short-term maturities. Revenue Recognition The adoption of the new standard did not have a material impact to our financial statements. Revenue is recognized when control of the promised services is transferred to our customers, in an amount reflecting the consideration we expect to be entitled to in exchange for those services. Certain products are generally sold with a right of return within our policy, which are accounted for as variable consideration when estimating the amount of revenue to recognize. Refunds are estimated at contract inception using the expected value method based on historical refund experience and updated each reporting period as additional information becomes available and only to the extent it is probable a significant reversal of any incremental revenue will not occur. Refunds reduce deferred revenue at the time they are granted and resulted in a reduced amount of revenue recognized over the contract term of the applicable service compared to the amount originally expected. Our revenue is categorized and disaggregated as follows: Domains Hosting Services Podcast Hosting Media Subscription Services Advertising Equity-Based Compensation - Leases Other Definite-life Intangible Assets - Business Combinations Contingent consideration is adjusted to fair value in subsequent periods as an increase or decrease in general and administrative expenses. Acquisition-related costs are expensed as incurred. See Note 3 to our consolidated financial statements for additional information regarding business combinations. Income Taxes Earnings (Loss) Per Share Income Taxes Recently Enacted Accounting Standards - In January 2017, the FASB issued ASU 2017-04, Intangibles, Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment Under the new guidance, if a reporting unit’s carrying amount exceeds its fair value, an entity will record an impairment charge based on that difference. The impairment charge will be limited to the amount of goodwill allocated to that reporting unit. The standard eliminates the previous requirement to calculate a goodwill impairment charge by comparing the implied fair value of goodwill with its carrying amount. The new standard becomes effective for us on January 1, 2020. We early adopted the proposed guidance under ASU 2017-04 for the year end December 31, 2018 on a prospective basis. The implementation of ASU 2017-04 did not have a material impact on our consolidated financial statements and related disclosures. Other recent accounting pronouncements issued by the FASB did not or are not believed by management to have a material impact on the Company’s present or future financial statements. |
PROPERTY & EQUIPMENT
PROPERTY & EQUIPMENT | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | The following is a summary of property and equipment at: Life December 31, 2018 December 31, 2017 Furniture, fixtures, and equipment 3-10 yrs $ 8,155,322 $ 8,032,178 Leasehold improvements 3 - 5 yrs 2,646,400 2,646,400 Software 3 yrs 262,046 6,503 11,063,768 10,685,081 Less: Accumulated depreciation (8,834,474 ) (7,678,056 ) Property & equipment, net $ 2,229,294 $ 3,007,025 Depreciation expense for the periods ended December 31, 2018 and 2017 was $1,156,418 and $22,033, respectively. |
GOODWILL AND OTHER DEFINITE-LIF
GOODWILL AND OTHER DEFINITE-LIFE INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER DEFINITE-LIFE INTANGIBLE ASSETS | Goodwill The Company followed the guidance in ASC 350-20-35-3 and performed the annual impairment test of goodwill. Using qualitative factors to determine whether it is necessary to perform the two-step goodwill impairment test discussed in paragraphs ASC 350-20-35-4 through 35-19, management concluded that it is more likely than not that the fair value of the Webmayhem reporting unit is more than its carrying amount. Therefore, no further testing is performed. Since 2018 was the first full reporting year for the Pair reporting unit, management decided it necessary to perform the quantitative impairment test as described in ASC 350-30-35-19. Using the valuation technique based on multiples of earnings or revenue, it was concluded that the goodwill of Pair had a fair market value which exceeded the carrying value of goodwill. Therefore, goodwill of Pair is considered not to be impaired. Goodwill consists of: December 31, December 31, 2018 2017 Pair $ 4,903,920 $ 4,867,818 Libsyn 11,484,251 11,484,251 Total Goodwill $ 16,388,171 $ 16,352,069 The following is a summary of goodwill for the Year Ended: December 31, December 31, 2018 2017 Goodwill at beginning of period $ 16,352,069 $ 11,484,251 Acquisition of Pair 36,102 4,867,818 Impairment - - Goodwill at end of period $ 16,388,171 $ 16,352,069 As of December 31, 2018, identifiable intangible assets consist of following: Preliminary Fair Value Weighted Average Useful Life (in Years) Accumulated Amortization Net Carrying Amount Customer Relationships $ 3,947,000 7 $ 563,857 $ 3,383,143 Intellectual Property 3,709,000 7 529,857 3,179,143 Trade name 576,000 10 57,600 518,400 Non-compete 1,412,000 2 706,000 706,000 Total $ 9,644,000 $ 1,857,314 $ 7,786,686 The estimated future amortization expenses related to other intangible assets as of December 31, 2018 are as follows: For twelve months ending December 31, 2019 $ 1,857,314 2020 1,151,315 2021 1,151,315 2022 1,151,314 2023 1,151,314 Thereafter 1,324,114 Total $ 7,786,686 |
LOANS
LOANS | 12 Months Ended |
Dec. 31, 2018 | |
Loans Payable [Abstract] | |
LOANS | On December 27, 2017, the Company entered into a loan agreement (the “Loan Agreement”) among the Company, Libsyn, and Pair, together, and First Commonwealth Bank, a Pennsylvania bank and trust company (the “Bank”). The Loan Agreement provides for: (i) a revolving credit facility pursuant to which the Company may borrow an aggregate principal amount not to exceed $2,000,000 (the “Revolving Credit Facility”); and (ii) a term loan in a principal amount equal to $8,000,000 (the “Term Loan” and, together with the Revolving Credit Facility, the “Facility”). A portion of the Revolving Credit Facility, up to $500,000, may be used for standby letters of credit for the account of the Company. As of December 31, 2018, $2,000,000 was drawn down on the revolving line with $0 available. The loan currently accrues interest at LIBOR plus 125 base points or prime plus 75 basis points at the election of the Company. As of December 31, 2018, the Company has elected LIBOR plus 125 basis points or 3.756%. The Term Loan is repayable in quarterly installments of $400,000 commencing on March 31, 2018 and on the last day of each June, September, December and March thereafter, through and including September 30, 2022. Accrued interest is payable in arrears not less frequently than quarterly. The remaining unpaid principal balance of the Term Loan, together with accrued interest thereon, is due and payable in full on December 27, 2022. The Term Loan also calls for additional payment equal to the following: 1)100% of the proceeds from the sale of any common shares 2) 100% of the proceeds from the sale of assets not immediately replaced 3) excess liquidity in any given year up to $1,066,667 and no more than $3,200,000 over the life of the term loan. Excess liquidity is obtained when the audited financial statements reflect a cash balance greater than $4,600,000. Based upon the 2018 financial statements, the company demonstrates excess liquidity per the Term Loan agreement. As such, the company has included the expected $1,066,667 payment to the bank as a current liability. As of December 31, 2018, the balance on the term loan was $6,400,000. The Company, Libsyn and Pair have granted the bank a blanket security interest in their respective assets, and the Company has pledged the stock of Webmayhem Inc. and Pair Networks Inc. to the bank, as security for all obligations under the Loan Agreement. Borrowings under the Facility are at variable rates which are, at the Company’s option, tied to LIBOR (London Interbank Offered Rate) plus an applicable rate or a prime rate. Interest rates are subject to change based on the Company’s combined cash balances. The Facility contains covenants that may have the effect of limiting the ability of the Company to, among other things, merge with or acquire other entities, enter into a transaction resulting in a change in control, create certain new liens, incur certain additional indebtedness, engage in certain transactions with affiliates, engage in new lines of business or sell a substantial part of its assets. The Facility also requires the Company to maintain certain consolidated fixed charge coverage ratios and minimum liquidity balances. The Facility also contains customary events of default, including (but not limited to) default in the payment of principal or, following an applicable grace period, interest, breaches of the Company’s covenants or warranties under the Facility, payment default or acceleration of certain indebtedness of the Company or any subsidiary, certain events of bankruptcy, insolvency or liquidation involving the Company or its subsidiaries, certain judgments or uninsured losses, changes in control and certain liabilities related to ERISA based plans. On December 27, 2017, the Company drew $10,000,000 under the Facility to finance a portion of the cash consideration pursuant to the Share Purchase Agreement. Debt issuance costs of $113,000 for the Facility were recorded as a discount and will be amortized over the life of the Facility. As of December 31, 2018, the discount was $79,634. Future Maturities of the loans at December 31, 2018 are as follows: For the year ending December 31, 2019 $ 2,666,667 2020 1,600,000 2021 1,600,000 2022 1,600,000 2023 933,333 Thereafter - Total $ 8,400,000 |
CAPITAL STOCK
CAPITAL STOCK | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
CAPITAL STOCK | Common Stock During the first quarter of 2018, the Company issued 200,000 shares of common stock valued at $318,000 to a consultant for services rendered. During the first quarter of 2018, the seller of Pair Networks Inc., returned 18,499 shares valued at $29,279 to the company as per the terms of the acquisition agreement dated December 27, 2017 in connection with the closing adjustment for the net-working capital provision. During the fourth quarter of 2018, the Company repurchased 55,000 shares of common stock for $82,500, and the stock was retired. During January 2017, the Company issued 3,650,000 stock awards comprising of shares of common stock valued at $1,752,000 to officers and directors and recorded non-compensation of $1,752,000. These shares are subject to forfeiture based on market conditions, including the market cap of the Company and up-listing to NASDAQ. These market conditions expire through April 2019. The shares are unable to be traded until these market conditions have been achieved. During the second quarter of 2017, the Company repurchased 40,000 restricted stock awards comprising of shares of common stock for $8,000, and the stock was retired. During December 2017, the Company issued 3,600,000 stock awards comprising of shares of common stock valued at $5,522,000 to officers, directors and employees, and recorded non-compensation of $5,522,000. These shares are subject to forfeiture based on market conditions, including the market cap of the Company, the trading price of the common stock of the Company and up-listing to NASDAQ. These market conditions expire through December 2020. The shares are unable to be traded until these market conditions have been achieved. On December 27, 2017, the Company completed the acquisition of all the issued and outstanding shares of capital stock of Pair. As part of the consideration, the Company issued 1,579,613 “unregistered” shares of the Company’s common stock valued at $2,500,000. Information regarding vested stock awards for the year ended December 31, 2018 is summarized in the table below: Shares Weighted Average Grant Date Fair Value Average Remaining Life Issued and outstanding awards subject to forfeiture at beginning of period 7,250,000 $ 1.00 1.68 Stock Awards Issued - $ - - Awards no-longer subject to forfeiture 2,075,000 $ 0.61 N/A Cancelled / Forfeited Awards - - - Issued and outstanding awards subject to forfeture at end of period 5,175,000 $ 1.16 1.45 |
DEFERRED REVENUE
DEFERRED REVENUE | 12 Months Ended |
Dec. 31, 2018 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
DEFERRED REVENUE | Deferred revenue consists of the following: December 31, 2018 December 31, 2017 Current: Hosting services $ 1,601,335 $ 1,032,000 Domains 535,273 104,172 Media subscription 139,471 111,514 $ 2,276,079 $ 1,247,686 Noncurrent: Hosting services 39,071 50,351 Domains 332,867 83,266 $ 2,648,017 $ 1,381,303 Deferred revenue as of December 31, 2018 is expected to be recognized as revenue as follows: 2019 2020 2021 2022 2023 Thereafter Total Domains $ 535,273 $ 132,278 $ 87,726 $ 70,796 $ 36,957 $ 5,110 $ 868,140 Hosting 1,601,335 35,340 3,731 - - - 1,640,406 Media Subscription 139,471 - - - - - 139,471 $ 2,276,079 $ 167,618 $ 91,457 $ 70,796 $ 36,957 $ 5,110 $ 2,648,017 Disaggregated revenue consists of following: Twelve months ended December 31 2018 2017 Hosting services $ 8,896,966 $ 47,563 Podcast hosting 10,915,771 8,504,883 Advertising 1,323,776 1,662,788 Domains 547,770 - Other 325,849 368,985 $ 22,010,132 $ 10,584,219 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | The Company accounts for income taxes in accordance with FASB ASC Topic 740, Accounting for Income Taxes which requires the Company to provide a net deferred tax asset or liability equal to the expected future tax benefit or expense of temporary reporting differences between book and tax accounting and any available operating loss or tax credit carryforwards. At December 31, 2018 and 2017, the total of all deferred tax assets was $1,454,077 and $0, respectively, and the total of the deferred tax assets related to goodwill was $0 and $1,848,717, respectively. The amount of and ultimate realization of the benefits from the deferred tax assets for income tax purposes is dependent, in part, upon the tax laws in effect, the Company’s future earnings, and other future events, the effects of which cannot be determined. Management has analyzed the health of the Company and it is now more likely than not that the company will likely have strong income from operations moving forward. Therefore, the valuation allowance has been relieved. The change in the valuation allowance for the years ended December 31, 2018 and 2017 was $1,454,077 and $110,866, respectively. The components of income tax expense (benefit) from continuing operations for the Years ended December 31, 2018 and 2017 consist of the following: For the Years Ended December 31, Current tax expense: 2018 2017 Federal $ 868,529 $ - State - - Current tax expense 868,529 - Deferred tax expense (benefit): Revaluation of deferred tax asset change in Federal Tax Rate - 1,400,760 Deferred Revenue (28,060 ) - Depreciation and amortization (164,862 ) - Goodwill - 511,108 Non-cash compensation (1,261,155 ) - Return to accrual - - Valuation Allowance - (110,866 ) Net operating loss carryforward - (1,801,002 ) Subtotal deferred tax expense/(benefit) (1,454,077 ) - Income tax expense/(benefit) $ (585,548 ) $ - A reconciliation of income tax expense at the federal statutory rate to income tax expense at the company’s effective rate is as follows: For the Years Ended December 31, 2018 2017 Computed tax at the expected statutory rate $ 868,529 $ (1,082,014 ) State and local income taxes, net of federal - 173,117 Other non-deductible expenses - 1,632 Revaluation of deferred tax assets for change in Federal Tax Rate - 1,400,760 Other items - (382,629 ) Valuation Allowance (1,454,077 ) (110,866 ) Income tax expense/(benefit) $ (585,548 ) $ - The temporary differences, tax credits and carryforwards gave rise to the following deferred tax asset at December 31, 2018 and 2017 December 31, December 31, 2018 2017 Current deferred tax assets (liabilities): Allowance for doubtful accounts $ - $ - Vacation accrual - - Total current deferred tax assets (liabilities) - - Long-term deferred tax assets (liabilities): Goodwill - impaired - 2,066,632 Goodwill – tax amortization - (3,915,349 ) Depreciation and amortization 164,862 - Deferred Revenue 28,060 - Non-cash compensation 1,261,155 - Net operating loss carryforward - 5,307,384 Valuation allowance - (3,458,667 ) Total long-term deferred tax assets (liabilities) $ 1,454,077 $ - Net term deferred tax assets (liabilities) $ 1,454,077 $ - At December 31, 2018, the company has loss carryforwards of $0. We file U.S. federal, and U.S. states returns, and we are generally no longer subject to tax examinations for years prior to 2015 for U.S. federal and U.S. states tax returns. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2018 | |
Leases [Abstract] | |
LEASES | Operating Leases The future minimum lease payments for non-cancelable operating leases having remaining terms in excess of one year as of December 31, 2018 are as follows: Year ending December 31: Lease Payments 2019 544,284 2020 493,164 2021 365,562 2022 19,812 Thereafter - Total Minimum Lease Payment $ 1,422,822 Lease expense charged to operations was $611,538 and $167,945 for the periods ended December 31, 2018 and 2017, respectively. Capital Leases – During the year ended December 31, 2018, depreciation expense for equipment on capital lease amounted to $33,232 and has been included in depreciation expense. Future minimum capital lease payments are as follows for the years ended December 31: Year ending December 31, Lease Payments 2019 75,132 2020 835 Total minimum lease payments 75,967 Less amount representing interest (2,150 ) Present value of minimum lease payments 73,817 Less Current Portion (72,986 ) $ 831 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | Basic income (loss) per share is computed by dividing net income (loss) attributable to Liberated Syndication Inc. by the weighted-average number of shares of common stock outstanding during the period. As of December 31, 2018, there were no common stock equivalents outstanding. The following data shows the amounts used in computing earnings per share and the weighted average number of shares of common stock outstanding for the periods presented for the periods ended: December 31, 2017 December 31, 2017 Income (loss) from operations available to common stockholders (numerator)$ $ 4,373,345 (3,182,395 ) Income (loss) available to common stockholders (numerator) 4,373,345 (3,182,395 ) Weighted average number of common shares outstanding during the period used in earnings per share (denominator) 29,740,207 24,390,595 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | Although the Company does not expect to be liable for any obligations not expressly assumed by the Company from the Spin-Off, it is possible that the Company could be required to assume responsibility for certain obligations retained by FAB should FAB fail to pay or perform its retained obligations. FAB may have obligations that at the present time are unknown or unforeseen. As the nature of such obligations are unknown, we are unable to provide an estimate of the potential obligation. However, should FAB incur such obligations, the Company may be financially obligated to pay any losses incurred. The Company has a 401 (k) plan and profit-sharing plan for the benefit of the employees of the Company. Employees are eligible to participate in the plan the first of the month following their hire date and attaining the age of 21. Profit sharing contributions are made at the discretion of the Board of Directors and vest 100% after the second year of service. The Company made a $100,000 profit sharing contribution to the plan in 2018. |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | ASC 280, “Segment Reporting”, establishes standards for reporting information about operating segments on a basis consistent with the Company's internal organizational structure as well as information about geographical areas, business segments and major customers in financial statements for details on the Company's business segments. The Company is engaged in providing hosting services. The Company's chief operating decision maker (“CODM”) has been identified as the CEO who reviews the financial information of separate operating segments when making decisions about allocating resources and assessing performance of the group. Based on management's assessment, the Company has determined that it has two operating segments as of December 31, 2018 which are podcast hosting services (Libsyn) and internet hosting services (Pair). The following table presents summary information by segment for the twelve months ended December 31, 2018 and 2017, respectively: 2018 2017 (in thousands) Libsyn Pair Total Libsyn Pair Total Revenue $ 12,630 $ 9,380 $ 22,010 $ 10,536 $ 48 $ 10,584 Cost of revenue 2,516 816 3,332 2,379 - 2,379 Total assets $ 22,328 $ 17,732 $ 40,060 $ 16,965 $ 18,104 $ 35,069 Depreciation and amortization $ 46 $ 2,968 $ 3,014 $ 22 $ - $ 22 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | Management has evaluated subsequent events through the date of the filing of this report. No events were identified that would require adjustment to or disclosure in the financial statements. |
RESTATEMENT OF PREVIOUSLY REPOR
RESTATEMENT OF PREVIOUSLY REPORTED CONSOLIDATED ANNUAL FINANCIAL STATEMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Restatement of previously reported consolidated annual financial statements | Background On April 28, 2020, the Audit Committee of the Board of Directors of Liberated Syndication Inc, a Nevada corporation (the “Company”) determined that (a) the Consolidated Balance Sheet as of December 31, 2018, (b) the Consolidated Statement of Operations for the year ended December 31, 2018, (c) the Statement of Stockholders’ Equity for the year ended December 31, 2018, and (d) the Consolidated Statement of Cash Flows for the year December 31, 2018, all as presented in the Company’s Annual Report on Form 10-K for the Period Ended December 31, 2018, as previously filed with the U.S. Securities and Exchange Commission on March 14, 2019, should not be relied upon. Specifically, the amounts reported in the Consolidated Balance Sheet as of December 31, 2018 for total assets, current liabilities, and consequently total liabilities and total stockholders’ equity, were determined to be materially different. Additionally, the Income Tax benefit for 2018 in the Consolidated Statement of Operations for the year ended December 31, 2018 was changed. As a result, the net income and the basic and diluted income per common share were determined to be materially different. The Statement of Stockholders’ Equity for the year ended December 31, 2018 and with its Net Income and Accumulated Deficit are consequently affected. The Consolidated Statement of Cash Flows for the year ended December 31, 2018 changed the Deferred Tax Asset and Income Tax Payable for 2018. During the 2019 audit process, it was discovered through an ongoing IRS examination it was discovered that the Company owed Federal tax for 2018. The IRS examination uncovered an error in calculating the Net Operating Loss Carryforward (NOL) resulting from the spin-off of Libsyn in 2016. At December 31, 2017, the Company had recorded an NOL of approximately $14 million. The NOL was part of deferred tax asset which was valued at $0 on the balance sheet, due to it having a full valuation allowance. Consequently, the Company was not recognizing tax expenses or the associated tax payable during 2018. However, as the IRS examination continued, it has become clear that the $14 million NOL was overestimated by approximately $12.5 million, and by December 31, 2018, that the NOL has been completely utilized. The result is that the Company ought to have begun recording tax expenses in 2018. This Federal Tax Balance will be paid with an amended return in 2020. The Company has temporary tax differences which result in a deferred tax asset (DTA). Under the provisions of ASC Topic 740, a DTA is to be recognized for the potential future tax benefit from a loss carryforward. Full realization of the benefit, however, depends on the Company having income in future years. Because the NOL has been completely utilized and the Company is now consistently recording profits, a DTA with the associated payable should have been recorded in 2018. DTAs represent future income tax benefits. But the tax benefits will be realized only if there is sufficient taxable income from which the deductible amount can be deducted. Impact of the Restatement As a result of the restatement, reported net income was increased by $585,548, or $0.02 per basic and diluted share for the year ended December 31, 2018. Total assets increased by $1,454,077 at December 31, 2018. Current and total liabilities increased by $868,529 at December 31, 2018. Accumulated deficit decreased by $585,548 at December 31, 2018. The financial statements included in this Form 10-K/A have been restated to reflect the adjustments described. The table below summarizes the effects of the restatement on Libsyn’s Consolidated Statements of Operation for the year ended December 31, 2018 and, Consolidated Balance Sheet at December 31, 2018. In addition to the restatement of the financial statements, certain information within Note 7 – Income Taxes to the financial statements has been restated to reflect the corrections of misstatements discussed above as well as to add disclosure language as appropriate. Consolidated Balance Sheet December 31, 2018 As Reported Corrections December 31, 2018 As Restated Deferred Tax Assets - 1,454,077 1,454,077 Total Assets 38,606,845 1,454,077 40,060,922 Income Taxes Payable - 868,529 868,529 Total Current Liabilities 6,111,125 868,529 6,979,654 Total Liabilities 12,165,661 868,529 13,034,190 Accumulated Deficit (8,599,090) 585,548 (8,013,542) Consolidated Statement of Operations Year ended December 31, 2018 As Reported Corrections Year ended December 31, 2018 As Restated Income Tax Benefit (Expense) - 585,548 585,548 Net Income 3,787,797 585,548 4,373,345 Basic and Diluted Income Per Common Share 0.13 0.02 0.15 Statement of Stockholders’ Equity December 31, 2018 As Reported Corrections December 31, 2018 As Restated Net Income 3,787,797 585,548 4,373,345 Accumulated Deficit (8,599,090) 585,548 (8,013,542) |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Organization | Liberated Syndication Inc., (“Company”, “parent”), a Nevada Corporation, was organized on September 30, 2015. Webmayhem, Inc. (“Libsyn”), a Pennsylvania corporation, a wholly owned subsidiary of the Company, was organized on January 1, 2001. Libsyn provides podcast hosting services for producers of content. Libsyn also offers ad insertion on certain of the producers’ content. Libsyn offers hosting and distribution tools, including storage, bandwidth, syndication creation, distribution, and statistics tracking. Libsyn offers an enterprise solution for professional media producers and corporate customers and a premium subscription service that provides producers a custom App and a podcast Website where listeners can access their show, login to purchase a subscription, and get access to premium content. On December 27, 2017, the Company purchased all the issued and outstanding shares of Pair Networks Inc., (“Pair”), a Pennsylvania corporation, and subsidiaries Ryousha Kokusai, LLC (Ryousha) and 660837NB, Inc. (NB), in a transaction accounted for as a purchase. Pair Networks Inc. provides web hosting services and domain name registrations. Services include shared web hosting, e-commerce, fully-managed virtual private and dedicated servers, customer self-managed dedicated servers, domain-name registration, co-location and content-delivery networks. Pair began operations in August 1995. It incorporated in the state of Pennsylvania in August 1998. Pair’s principal operations are conducted on-site in Pittsburgh, PA. Pair also has an operating site in Denver, Colorado, and a remote site back-up location in Pittsburgh, PA. Ryousha Kokusai, LLC (dba Pair International), a wholly owned single-member limited liability company subsidiary of Pair, was formed on January 1, 2015. The Value Added Tax(VAT) for sales to European Union countries subject to the VAT in Europe are paid through Ryousha Kokusai LLC. There are no operating activities conducted by Ryousha. NB, a Canadian Company was organized on December 2, 2011. NB is used solely for holding the Canadian tradenames and domain names of Pair. There are no operating activities conducted by NB. |
Principles of consolidation | Our financial statements have been prepared in accordance with generally accepted accounting principles in the United States (GAAP) and include our accounts and the accounts of our subsidiaries. The financial statements presented reflect the accounts of parent, Libsyn, Ryousha, NB and Pair. All material intercompany accounts and transactions have been eliminated. |
Accounting estimates | The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Our more significant estimates include: · the fair value of assets acquired, and liabilities assumed in business acquisitions; · the assessment of recoverability of long-lived assets, including property and equipment, goodwill and intangible assets; · the estimated reserve for refunds; · the estimated useful lives of intangible and depreciable assets; · the grant date fair value of equity-based awards; · the recognition, measurement, and valuation of current and deferred income taxes; We periodically evaluate these estimates and adjust prospectively, if necessary. We believe our estimates and assumptions are reasonable; however, actual results may differ from our estimates. |
Cash and cash equivalents | The Company considers all highly liquid investments with an original maturity date of three months or less when purchased to be cash equivalents. At December 31, 2018, the Company had $10,641,198 cash balances in excess of federally insured limits. |
Concentration of credit risk | Financial instruments that potentially subject the Company to a concentration of credit risk consist primarily of cash, cash equivalents and account receivable. Management’s assessment of the Company’s credit risk for cash and cash equivalents is low as cash and cash equivalents are held in financial institutions believed to be credit worthy. No single customer represented over 10% of our total revenue for any period presented. As of December 31, 2018, two customers individually accounted for 18% and 12%, respectively, of our total accounts receivable. In 2017, the same two customers individually accounted for 10% and 8%, respectively. |
Accounts receivable | Accounts receivable consist of trade receivables arising in the normal course of business. At December 31, 2018 and 2017, the Company has an allowance for doubtful accounts of $14,000 and $14,000, respectively, which reflects the Company’s best estimate of probable losses inherent in the accounts receivable balance. The Company determines the allowance based on known troubled accounts, historical experience, and other currently available evidence. During the years ended December 31, 2018 and 2017, the Company adjusted the allowance for bad debt by $0. |
Registry deposits | Registry deposits represent amounts on deposit with, or receivable from, various domain name registries to be used by us to make payments for future domain registrations or renewals. |
Prepaid domain name registry fees | Prepaid domain name registry fees represent amounts charged by a registry at the time a domain is registered or renewed. These amounts are amortized to cost of revenue over the same period revenue is recognized for the related domain registration contracts. |
Property and Equipment | Property and equipment is stated at cost. Depreciation is recorded over the shorter of the estimated useful life or the lease term of the applicable asset using the straight-line method beginning on the date an asset is placed in service. Maintenance and repairs are charged to expense as incurred. |
Definite-Life Intangible Assets | The Company evaluates its long-lived assets for impairment whenever events or change in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the asset to the future net undiscounted cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is the excess of the carrying amount over the fair value of the asset. |
Software development costs | We account for software development costs, including costs to develop software products or the software component of products to be marketed to external users, as well as software programs to be used solely to meet our internal needs in accordance with ASC Topic 985 Software. Software development costs associated with software to be sold, leased, or for internal use are expensed as incurred until technological feasibility, defined as a working model or prototype, has been established. At that time, such costs are capitalized until the product is available for general release and amortized over its useful life. |
Debt issuance costs | We defer and amortize issuance costs, underwriting fees and related expenses incurred in connection with the issuance of debt instruments using the effective interest method over the terms of the respective instruments. Debt issuance costs, other than those associated with our revolving credit loan, are reflected as a direct reduction (discount) of the carrying amount of the related debt liability. |
Goodwill | Goodwill is evaluated for impairment annually and whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable. The Company performed the annual impairment test of goodwill as of December 31, 2018. Triggering events that may indicate impairment include, but are not limited to, a significant adverse change in customer demand or business climate that could affect the value of goodwill or a significant decrease in expected cash flows. The company recorded no impairment charge for goodwill during the years ended December 31, 2018 and 2017. |
Advertising costs | Advertising costs are expensed as incurred and amounted to $122,424 and $34,623 for the periods ending December 31, 2018 and 2017, respectively. |
Fair value of financial instruments | The Company accounts for fair value measurements for financial assets and financial liabilities in accordance with FASB ASC Topic 820. The authoritative guidance, which, among other things, defines fair value, establishes a consistent framework for measuring fair value and expands disclosure for each major asset and liability category measured at fair value on either a recurring or nonrecurring basis. Fair value is defined as the exit price, representing the amount that would either be received to sell an asset or be paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: • Level 1. Observable inputs such as quoted prices in active markets for identical assets or liabilities; • Level 2. Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and • Level 3. Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. Unless otherwise disclosed, the fair value of the Company’s financial instruments including cash, accounts receivable, prepaid expenses, and accounts payable, deferred revenue and accrued expenses approximates their recorded values due to their short-term maturities. |
Revenue recognition | On January 1, 2018, we adopted the Financial Accounting Standards Board's (FASB) new revenue recognition standard using the modified retrospective method applied to those contracts not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under the new standard. The adoption of the new standard did not have a material impact to our financial statements. Revenue is recognized when control of the promised services is transferred to our customers, in an amount reflecting the consideration we expect to be entitled to in exchange for those services. Certain products are generally sold with a right of return within our policy, which are accounted for as variable consideration when estimating the amount of revenue to recognize. Refunds are estimated at contract inception using the expected value method based on historical refund experience and updated each reporting period as additional information becomes available and only to the extent it is probable a significant reversal of any incremental revenue will not occur. Refunds reduce deferred revenue at the time they are granted and resulted in a reduced amount of revenue recognized over the contract term of the applicable service compared to the amount originally expected. Our revenue is categorized and disaggregated as follows: Domains Hosting Services Podcast Hosting Media Subscription Services Advertising |
Equity-based compensation | Our equity-based awards are comprised of stock and are accounted for using the fair value method. Stock is measured based on the fair market value of the underlying common stock on the date of grant. Awards vest and compensation is recognized over the requisite service period. The measurement date for performance vesting awards is the date on which the applicable performance criteria are approved by our board of directors. |
Business combinations | We include the results of operations of acquired businesses in our consolidated financial statements as of the respective dates of acquisition. Accounting for business combinations requires us to make significant estimates and assumptions, especially at the acquisition date, with respect to tangible and intangible assets acquired and liabilities assumed and pre-acquisition contingencies. The purchase price of acquisitions, including estimates of the fair value of contingent consideration when applicable, is allocated to the tangible and intangible assets acquired and the liabilities assumed based on their estimated fair values on the respective acquisition dates, with the excess recorded as goodwill. We use our best estimates and assumptions to accurately assign fair value to the tangible and intangible assets acquired and liabilities assumed at the acquisition date. The estimates are inherently uncertain and subject to refinement. We continue to collect information and reevaluate these estimates and assumptions quarterly and record any adjustments to the preliminary estimates to goodwill provided we are within the measurement period. Contingent consideration is adjusted to fair value in subsequent periods as an increase or decrease in general and administrative expenses. Acquisition-related costs are expensed as incurred. See Note 3 to our consolidated financial statements for additional information regarding business combinations. |
Leases | The Company accounts for leases in accordance with Accounting Standards Codification (“ASC”) Topic 840. Leases that meet one or more of the capital lease criteria of standard are recorded as a capital lease, all other leases are operating leases. |
Other definite-life intangible assets | Other intangible assets consist of customer relationships, intellectual property, trade name and non-compete agreement, which were generated through the acquisition of Pair. Management considers these intangible assets to have finite-lives. These assets are being amortized on a straight-line basis over their estimated useful lives. |
Business combination | We include the results of operations of acquired businesses in our consolidated financial statements as of the respective dates of acquisition. Accounting for business combinations requires us to make significant estimates and assumptions, especially at the acquisition date, with respect to tangible and intangible assets acquired and liabilities assumed and pre-acquisition contingencies. The purchase price of acquisitions, including estimates of the fair value of contingent consideration when applicable, is allocated to the tangible and intangible assets acquired and the liabilities assumed based on their estimated fair values on the respective acquisition dates, with the excess recorded as goodwill. We use our best estimates and assumptions to accurately assign fair value to the tangible and intangible assets acquired and liabilities assumed at the acquisition date. The estimates are inherently uncertain and subject to refinement. We continue to collect information and reevaluate these estimates and assumptions quarterly and record any adjustments to the preliminary estimates to goodwill provided we are within the measurement period. Contingent consideration is adjusted to fair value in subsequent periods as an increase or decrease in general and administrative expenses. Acquisition-related costs are expensed as incurred. See Note 3 to our consolidated financial statements for additional information regarding business combinations. |
Income taxes | The Company accounts for income taxes using the liability method, which requires the determination of deferred tax assets and liabilities based on the differences between the financial and tax basis of assets and liabilities, using enacted tax rates in effect for the year in which differences are expected to reverse. Deferred tax assets are adjusted by a valuation allowance, if based on the weight of available evidence it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company anticipates continued earnings and the realization of the benefit of the deferred tax assets. |
Earnings (loss) per share | The Company computes earnings per share in accordance with FASB ASC Topic 260 Earnings Per Share, which requires the Company to present basic earnings per share and diluted earnings per share when the effect is dilutive (see Note 9). |
Recently enacted accounting standards | In February 2016, the FASB issued changes to the accounting for leases that primarily affect presentation and disclosure requirements. The new standard will require the recognition of a right to use asset and underlying lease liability for operating leases with an initial life in excess of one year. This standard is effective for us beginning in the first quarter of 2019. We have not yet determined the impact of the new standard on our consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles, Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment Under the new guidance, if a reporting unit’s carrying amount exceeds its fair value, an entity will record an impairment charge based on that difference. The impairment charge will be limited to the amount of goodwill allocated to that reporting unit. The standard eliminates the previous requirement to calculate a goodwill impairment charge by comparing the implied fair value of goodwill with its carrying amount. The new standard becomes effective for us on January 1, 2020. We early adopted the proposed guidance under ASU 2017-04 for the year end December 31, 2018 on a prospective basis. The implementation of ASU 2017-04 did not have a material impact on our consolidated financial statements and related disclosures. Other recent accounting pronouncements issued by the FASB did not or are not believed by management to have a material impact on the Company’s present or future financial statements. |
PROPERTY & EQUIPMENT (Tables)
PROPERTY & EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | Life December 31, 2018 December 31, 2017 Furniture, fixtures, and equipment 3-10 yrs $ 8,155,322 $ 8,032,178 Leasehold improvements 3 - 5 yrs 2,646,400 2,646,400 Software 3 yrs 262,046 6,503 11,063,768 10,685,081 Less: Accumulated depreciation (8,834,474 ) (7,678,056 ) Property & equipment, net $ 2,229,294 $ 3,007,025 |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of goodwill | December 31, December 31, 2018 2017 Pair $ 4,903,920 $ 4,867,818 Libsyn 11,484,251 11,484,251 Total Goodwill $ 16,388,171 $ 16,352,069 The following is a summary of goodwill for the Year Ended: December 31, December 31, 2018 2017 Goodwill at beginning of period $ 16,352,069 $ 11,484,251 Acquisition of Pair 36,102 4,867,818 Impairment - - Goodwill at end of period $ 16,388,171 $ 16,352,069 |
Summary of other intangible assets | Preliminary Fair Value Weighted Average Useful Life (in Years) Accumulated Amortization Net Carrying Amount Customer Relationships $ 3,947,000 7 $ 563,857 $ 3,383,143 Intellectual Property 3,709,000 7 529,857 3,179,143 Trade name 576,000 10 57,600 518,400 Non-compete 1,412,000 2 706,000 706,000 Total $ 9,644,000 $ 1,857,314 $ 7,786,686 |
Schedule of estimated future amortization expenses related to other intangible assets | For twelve months ending December 31, 2019 $ 1,857,314 2020 1,151,315 2021 1,151,315 2022 1,151,314 2023 1,151,314 Thereafter 1,324,114 Total $ 7,786,686 |
LOANS (Tables)
LOANS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Loans | |
Future maturities of the loans | For the year ending December 31, 2019 $ 2,666,667 2020 1,600,000 2021 1,600,000 2022 1,600,000 2023 933,333 Thereafter - Total $ 8,400,000 |
CAPITAL STOCK (Tables)
CAPITAL STOCK (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Capital Stock | |
Vested stock awards | Shares Weighted Average Grant Date Fair Value Average Remaining Life Issued and outstanding awards subject to forfeiture at beginning of period 7,250,000 $ 1.00 1.68 Stock Awards Issued - $ - - Awards no-longer subject to forfeiture 2,075,000 $ 0.61 N/A Cancelled / Forfeited Awards - - - Issued and outstanding awards subject to forfeture at end of period 5,175,000 $ 1.16 1.45 |
DEFERRED REVENUE (Tables)
DEFERRED REVENUE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Summary of Deferred revenue | December 31, 2018 December 31, 2017 Current: Hosting services $ 1,601,335 $ 1,032,000 Domains 535,273 104,172 Media subscription 139,471 111,514 $ 2,276,079 $ 1,247,686 Noncurrent: Hosting services 39,071 50,351 Domains 332,867 83,266 $ 2,648,017 $ 1,381,303 |
Deferred revenue expected to be recognized as revenue | 2019 2020 2021 2022 2023 Thereafter Total Domains $ 535,273 $ 132,278 $ 87,726 $ 70,796 $ 36,957 $ 5,110 $ 868,140 Hosting 1,601,335 35,340 3,731 - - - 1,640,406 Media Subscription 139,471 - - - - - 139,471 $ 2,276,079 $ 167,618 $ 91,457 $ 70,796 $ 36,957 $ 5,110 $ 2,648,017 |
Summary of Disaggregated revenue | Twelve months ended December 31 2018 2017 Hosting services $ 8,896,966 $ 47,563 Podcast hosting 10,915,771 8,504,883 Advertising 1,323,776 1,662,788 Domains 547,770 - Other 325,849 368,985 $ 22,010,132 $ 10,584,219 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of income tax expense (benefit) | For the Years Ended December 31, Current tax expense: 2018 2017 Federal $ 868,529 $ - State - - Current tax expense 868,529 - Deferred tax expense (benefit): Revaluation of deferred tax asset change in Federal Tax Rate - 1,400,760 Deferred Revenue (28,060 ) - Depreciation and amortization (164,862 ) - Goodwill - 511,108 Non-cash compensation (1,261,155 ) - Return to accrual - - Valuation Allowance - (110,866 ) Net operating loss carryforward - (1,801,002 ) Subtotal deferred tax expense/(benefit) (1,454,077 ) - Income tax expense/(benefit) $ (585,548 ) $ - |
Schedule of effective income tax rate reconciliation | For the Years Ended December 31, 2018 2017 Computed tax at the expected statutory rate $ 868,529 $ (1,082,014 ) State and local income taxes, net of federal - 173,117 Other non-deductible expenses - 1,632 Revaluation of deferred tax assets for change in Federal Tax Rate - 1,400,760 Other items - (382,629 ) Valuation Allowance (1,454,077 ) (110,866 ) Income tax expense/(benefit) $ (585,548 ) $ - |
Schedule of deferred tax assets and liabilities | December 31, December 31, 2018 2017 Current deferred tax assets (liabilities): Allowance for doubtful accounts $ - $ - Vacation accrual - - Total current deferred tax assets (liabilities) - - Long-term deferred tax assets (liabilities): Goodwill - impaired - 2,066,632 Goodwill – tax amortization - (3,915,349 ) Depreciation and amortization 164,862 - Deferred Revenue 28,060 - Non-cash compensation 1,261,155 - Net operating loss carryforward - 5,307,384 Valuation allowance - (3,458,667 ) Total long-term deferred tax assets (liabilities) $ 1,454,077 $ - Net term deferred tax assets (liabilities) $ 1,454,077 $ - |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Leases [Abstract] | |
Schedule of future minimum lease payments | Year ending December 31: Lease Payments 2019 544,284 2020 493,164 2021 365,562 2022 19,812 Thereafter - Total Minimum Lease Payment $ 1,422,822 |
Schedule of future minimum capital lease payments | Year ending December 31, Lease Payments 2019 75,132 2020 835 Total minimum lease payments 75,967 Less amount representing interest (2,150 ) Present value of minimum lease payments 73,817 Less Current Portion (72,986 ) $ 831 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share | December 31, 2017 December 31, 2017 Income (loss) from operations available to common stockholders (numerator)$ $ 4,373,345 (3,182,395 ) Income (loss) available to common stockholders (numerator) 4,373,345 (3,182,395 ) Weighted average number of common shares outstanding during the period used in earnings per share (denominator) 29,740,207 24,390,595 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Summary of Segment Reporting | 2018 2017 (in thousands) Libsyn Pair Total Libsyn Pair Total Revenue $ 12,630 $ 9,380 $ 22,010 $ 10,536 $ 48 $ 10,584 Cost of revenue 2,516 816 3,332 2,379 - 2,379 Total assets $ 22,328 $ 17,732 $ 40,060 $ 16,965 $ 18,104 $ 35,069 Depreciation and amortization $ 46 $ 2,968 $ 3,014 $ 22 $ - $ 22 |
RESTATEMENT OF PREVIOUSLY REP_2
RESTATEMENT OF PREVIOUSLY REPORTED CONSOLIDATED ANNUAL FINANCIAL STATEMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Impact of restatement | Consolidated Balance Sheet December 31, 2018 As Reported Corrections December 31, 2018 As Restated Deferred Tax Assets - 1,454,077 1,454,077 Total Assets 38,606,845 1,454,077 40,060,922 Income Taxes Payable - 868,529 868,529 Total Current Liabilities 6,111,125 868,529 6,979,654 Total Liabilities 12,165,661 868,529 13,034,190 Accumulated Deficit (8,599,090) 585,548 (8,013,542) Consolidated Statement of Operations Year ended December 31, 2018 As Reported Corrections Year ended December 31, 2018 As Restated Income Tax Benefit (Expense) - 585,548 585,548 Net Income 3,787,797 585,548 4,373,345 Basic and Diluted Income Per Common Share 0.13 0.02 0.15 Statement of Stockholders’ Equity December 31, 2018 As Reported Corrections December 31, 2018 As Restated Net Income 3,787,797 585,548 4,373,345 Accumulated Deficit (8,599,090) 585,548 (8,013,542) |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | ||
Cash balances in excess of federally insured limits | $ 10,641,198 | $ 4,597,648 |
Allowance for doubtful accounts | 14,000 | 14,000 |
Adjustments to allowance for bad debt | 0 | 0 |
Advertising costs | 122,424 | 34,623 |
Research and development costs | $ 1,842,020 | $ 610,794 |
PROPERY & EQUIPMENT (Details)
PROPERY & EQUIPMENT (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Property and equipment | $ 11,063,768 | $ 10,685,081 |
Less: Accumulated depreciation | (8,834,474) | (7,678,056) |
Property and equipment, net | 2,229,294 | 3,007,025 |
Furniture, fixtures and equipment [Member] | ||
Property and equipment | $ 8,155,322 | 8,032,178 |
Furniture, fixtures and equipment [Member] | Minimum [Member] | ||
Estimated useful life | 3 years | |
Furniture, fixtures and equipment [Member] | Maximum [Member] | ||
Estimated useful life | 10 years | |
Leasehold improvements [Member] | ||
Property and equipment | $ 2,646,400 | 2,646,400 |
Leasehold improvements [Member] | Minimum [Member] | ||
Estimated useful life | 3 years | |
Leasehold improvements [Member] | Maximum [Member] | ||
Estimated useful life | 5 years | |
Software [Member] | ||
Estimated useful life | 3 years | |
Property and equipment | $ 262,046 | $ 6,503 |
PROPERY & EQUIPMENT (Details Na
PROPERY & EQUIPMENT (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 1,156,418 | $ 22,033 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Goodwill | $ 16,388,171 | $ 16,352,069 | $ 11,484,251 |
Pair | |||
Goodwill | 4,903,920 | 4,867,818 | |
Libsyn | |||
Goodwill | $ 11,484,251 | $ 11,484,251 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS (Details 1) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill at beginning of period | $ 16,352,069 | $ 11,484,251 |
Acquisition of pair | 36,102 | 4,867,818 |
Impairment | 0 | 0 |
Goodwill at end of period | $ 16,388,171 | $ 16,352,069 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS (Details 2) | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Preliminary fair value | $ 9,644,000 |
Accumulated amortization | 1,857,314 |
Net carrying amount | 7,786,686 |
Customer relationships | |
Preliminary fair value | $ 3,947,000 |
Weighted average useful life | 7 years |
Accumulated amortization | $ 563,857 |
Net carrying amount | 3,383,143 |
Intellectual property | |
Preliminary fair value | $ 3,709,000 |
Weighted average useful life | 7 years |
Accumulated amortization | $ 529,857 |
Net carrying amount | 3,179,143 |
Trade name | |
Preliminary fair value | $ 576,000 |
Weighted average useful life | 10 years |
Accumulated amortization | $ 57,600 |
Net carrying amount | 518,400 |
Non-compete | |
Preliminary fair value | $ 1,412,000 |
Weighted average useful life | 2 years |
Accumulated amortization | $ 706,000 |
Net carrying amount | $ 706,000 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS (Details 3) | Dec. 31, 2018USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2019 | $ 1,857,314 |
2020 | 1,151,315 |
2021 | 1,151,315 |
2022 | 1,151,314 |
2023 | 1,151,314 |
Thereafter | 1,324,114 |
Total | $ 7,786,686 |
LOANS (Details)
LOANS (Details) | Dec. 31, 2018USD ($) |
Loans Details Abstract | |
2019 | $ 2,666,667 |
2020 | 1,600,000 |
2021 | 1,600,000 |
2022 | 1,600,000 |
2023 | 933,333 |
Thereafter | 0 |
Total | $ 8,400,000 |
CAPITAL STOCK (Details)
CAPITAL STOCK (Details) | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Capital Stock Details Abstract | |
Stock awards outstanding, beginning | shares | 7,250,000 |
Stock awards, issued | shares | 0 |
Stock awards, no-longer subject to forfeiture | shares | 2,075,000 |
Stock awards, cancelled/forfeited | shares | 0 |
Stock awards outstanding, ending | shares | 5,175,000 |
Weighted average grant date fair value outstanding, beginning | $ / shares | $ 1 |
Weighted average grant date fair value, issued | $ / shares | 0 |
Weighted average grant date fair value, no-longer subject to forfeiture | $ / shares | 0.61 |
Weighted average grant date fair value, cancelled/forfeited | $ / shares | 0 |
Weighted average grant date fair value outstanding, ending | $ / shares | $ 1.16 |
Average remaining life, issued | 1 year 8 months 5 days |
Average remaining life outstanding, ending | 1 year 5 months 12 days |
CAPITAL STOCK (Details Narrativ
CAPITAL STOCK (Details Narrative) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Stockholders' Equity Note [Abstract] | ||
Common stock authorized | 200,000,000 | 200,000,000 |
Common stock par value | $ .001 | $ 0.001 |
Common stock issued | 29,721,974 | |
Common stock outstanding | 29,721,974 | 29,595,473 |
DEFERRED REVENUE (Details)
DEFERRED REVENUE (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Current revenue | $ 2,276,079 | $ 1,247,686 |
Noncurrent revenue | 371,938 | 133,617 |
Deferred revenue | 2,648,017 | 1,381,303 |
Hosting Services | ||
Current revenue | 1,601,335 | 1,032,000 |
Noncurrent revenue | 39,071 | 50,351 |
Deferred revenue | 1,640,406 | |
Domains | ||
Current revenue | 535,273 | 104,172 |
Noncurrent revenue | 332,867 | 83,266 |
Deferred revenue | 868,140 | |
Media Subscription | ||
Current revenue | 139,471 | $ 111,514 |
Deferred revenue | $ 139,471 |
DEFERRED REVENUE (Details 1) (U
DEFERRED REVENUE (Details 1) (USD $) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
2019 | $ 2,276,079 | |
2020 | 167,618 | |
2021 | 91,457 | |
2022 | 70,796 | |
2023 | 36,957 | |
Thereafter | 5,110 | |
Total | 2,648,017 | $ 1,381,303 |
Domains | ||
2019 | 535,273 | |
2020 | 132,278 | |
2021 | 87,726 | |
2022 | 70,796 | |
2023 | 36,957 | |
Thereafter | 5,110 | |
Total | 868,140 | |
Hosting Services | ||
2019 | 1,601,335 | |
2020 | 35,340 | |
2021 | 3,731 | |
2022 | 0 | |
2023 | 0 | |
Thereafter | 0 | |
Total | 1,640,406 | |
Media Subscription | ||
2019 | 139,471 | |
2020 | 0 | |
2021 | 0 | |
2022 | 0 | |
2023 | 0 | |
Thereafter | 0 | |
Total | $ 139,471 |
DEFERRED REVENUE (Details 2)
DEFERRED REVENUE (Details 2) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue | $ 22,010,132 | $ 10,584,219 |
Hosting Services | ||
Revenue | 8,896,966 | 47,563 |
Podcast Hosting | ||
Revenue | 10,915,771 | 8,504,883 |
Advertising | ||
Revenue | 1,323,776 | 1,662,788 |
Domains | ||
Revenue | 547,770 | 0 |
Other | ||
Revenue | $ 325,849 | $ 368,985 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Current tax expense: | ||
Federal | $ 868,529 | $ 0 |
State | 0 | 0 |
Current tax expense | 868,529 | 0 |
Deferred tax expense (benefit): | ||
Revaluation of deferred tax asset change in Federal Tax Rate | 0 | 1,400,760 |
Deferred revenue | (28,060) | 0 |
Depreciation and amortization | (164,862) | 0 |
Goodwill | 0 | 511,108 |
Non-cash compensation | (1,261,155) | 0 |
Return to accrual | 0 | 0 |
Valuation Allowance | 0 | (110,866) |
Net operating loss carryforward | 0 | (1,801,002) |
Subtotal deferred tax expense/(benefit) | (1,454,077) | 0 |
Income tax expense/(benefit) | $ (585,548) | $ 0 |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Computed tax at the expected statutory rate | $ 868,529 | $ (1,082,014) |
State and local income taxes, net of federal | 0 | 173,117 |
Other non-deductible expenses | 0 | 1,632 |
Revaluation of deferred tax assets for change in Federal Tax Rate | 0 | 1,400,760 |
Other items | 0 | (382,629) |
Valuation Allowance | (1,454,077) | (110,866) |
Income tax expense/(benefit) | $ (585,548) | $ 0 |
INCOME TAXES (Details 2)
INCOME TAXES (Details 2) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Current deferred tax assets (liabilities): | ||
Allowance for doubtful accounts | $ 0 | $ 0 |
Vacation accrual | 0 | 0 |
Total current deferred tax assets (liabilities) | 0 | 0 |
Long-term deferred tax assets (liabilities): | ||
Goodwill - impaired | 0 | 2,066,632 |
Goodwill - tax amortization | 0 | (3,915,349) |
Depreciation and amortization | 164,862 | 0 |
Deferred revenue | 28,060 | 0 |
Non-cash compensation | 1,261,155 | 0 |
Net operating loss carryforward | 0 | 5,307,384 |
Valuation allowance | 0 | (3,458,667) |
Total long-term deferred tax assets (liabilities) | 1,454,077 | 0 |
Net term deferred tax assets (liabilities) | $ 1,454,077 | $ 0 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Total deferred tax assets | $ 1,454,077 | $ 0 |
Deferred tax assets attributable to goodwill | 0 | 1,848,717 |
Change in the valuation allowance | 1,454,077 | $ 110,866 |
Loss carryforwards | $ 0 |
LEASES (Details)
LEASES (Details) | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 544,284 |
2020 | 493,164 |
2021 | 365,562 |
2022 | 19,812 |
Thereafter | 0 |
Total Minimum Lease Payment | $ 1,422,822 |
LEASES (Details 1)
LEASES (Details 1) | Dec. 31, 2018USD ($) |
Leases Details 1Abstract | |
2019 | $ 75,132 |
2020 | 835 |
Total minimum lease payments | 75,967 |
Less amount representing interest | (2,150) |
Present value of minimum lease payments | 73,817 |
Less Current Portion | (72,986) |
Total | $ 831 |
LEASES (Details Narrative)
LEASES (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Leases Details Narrative Abstract | ||
Lease expense charged to operations | $ 611,538 | $ 167,945 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Income (loss) from operations available to common stockholders (numerator) | $ 4,373,345 | $ (3,182,395) |
Income (loss) available to common stockholders (numerator) | $ 4,373,345 | $ (3,182,395) |
Weighted average number of common shares outstanding during the period used in earnings per share (denominator) | 29,740,207 | 24,390,595 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Commitments And Contingencies Details | |
Profit sharing contribution | $ 100,000 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue | $ 22,010 | $ 10,584 |
Cost of revenue | 3,332 | 2,379 |
Total assets | 40,060 | 35,069 |
Depreciation and amortization | 3,014 | 22 |
Libsyn | ||
Revenue | 12,630 | 10,536 |
Cost of revenue | 2,516 | 2,379 |
Total assets | 22,328 | 16,965 |
Depreciation and amortization | 46 | 22 |
Pair | ||
Revenue | 9,380 | 48 |
Cost of revenue | 816 | 0 |
Total assets | 17,732 | 18,104 |
Depreciation and amortization | $ 2,968 | $ 0 |
RESTATEMENT OF PREVIOUSLY REP_3
RESTATEMENT OF PREVIOUSLY REPORTED CONSOLIDATED ANNUAL FINANCIAL STATEMENTS (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets | $ 1,454,077 | $ 0 |
Total assets | 40,060,922 | 35,068,579 |
Income taxes payable | 868,529 | 0 |
Total current liabilities | 6,979,654 | 4,093,613 |
Total liabilities | 13,034,190 | 12,621,413 |
Accumulated deficit | (8,013,542) | $ (12,386,887) |
As Reported | ||
Deferred tax assets | 0 | |
Total assets | 38,606,845 | |
Income taxes payable | 0 | |
Total current liabilities | 6,111,125 | |
Total liabilities | 12,165,661 | |
Accumulated deficit | (8,599,090) | |
Corrections | ||
Deferred tax assets | 1,454,077 | |
Total assets | 1,454,077 | |
Income taxes payable | 868,529 | |
Total current liabilities | 868,529 | |
Total liabilities | 868,529 | |
Accumulated deficit | $ 585,548 |
RESTATEMENT OF PREVIOUSLY REP_4
RESTATEMENT OF PREVIOUSLY REPORTED CONSOLIDATED ANNUAL FINANCIAL STATEMENTS (Details 1) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income tax benefit (expense) | $ 585,548 | $ 0 |
Net income | $ 4,373,345 | $ (3,182,395) |
Basic and diluted income per common share | $ .15 | $ (0.13) |
As Reported | ||
Income tax benefit (expense) | $ 0 | |
Net income | $ 3,787,797 | |
Basic and diluted income per common share | $ .13 | |
Corrections | ||
Income tax benefit (expense) | $ 585,548 | |
Net income | $ 585,548 | |
Basic and diluted income per common share | $ .02 |
RESTATEMENT OF PREVIOUSLY REP_5
RESTATEMENT OF PREVIOUSLY REPORTED CONSOLIDATED ANNUAL FINANCIAL STATEMENTS (Details 2) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Net income | $ 4,373,345 | $ (3,182,395) |
Accumulated deficit | (8,013,542) | $ (12,386,887) |
As Reported | ||
Net income | 3,787,797 | |
Accumulated deficit | (8,599,090) | |
Corrections | ||
Net income | 585,548 | |
Accumulated deficit | $ 585,548 |