Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 30, 2018 | |
Document Information [Line Items] | ||
Entity Registrant Name | INTELLIGENT SYSTEMS CORP | |
Entity Central Index Key | 320,340 | |
Trading Symbol | ins | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 8,777,988 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash | $ 10,183 | $ 14,024 |
Marketable securities | 416 | 438 |
Accounts receivable, net | 2,924 | 1,208 |
Notes and interest receivable, current portion | 271 | 16 |
Other current assets | 5,046 | 2,373 |
Total current assets | 18,840 | 18,059 |
Investments | 1,016 | 1,035 |
Notes and interest receivable, net of current portion | 1,485 | 1,250 |
Property and equipment, at cost less accumulated depreciation | 1,301 | 1,262 |
Other long-term assets | 207 | 173 |
Total assets | 22,849 | 21,779 |
Current liabilities: | ||
Accounts payable | 129 | 321 |
Deferred revenue, current portion | 848 | 853 |
Accrued payroll | 929 | 595 |
Accrued expenses | 105 | 98 |
Other current liabilities | 401 | 408 |
Total current liabilities | 2,412 | 2,275 |
Deferred revenue, net of current portion | 94 | 51 |
Intelligent Systems Corporation stockholders’ equity: | ||
Common stock, $0.01 par value, 20,000,000 shares authorized, 8,777,988 issued and outstanding at March 31, 2018 and December 31, 2017 | 88 | 88 |
Additional paid-in capital | 14,890 | 14,877 |
Accumulated other comprehensive loss | (159) | (143) |
Accumulated income | 5,524 | 4,631 |
Total Intelligent Systems Corporation stockholders’ equity | 20,343 | 19,453 |
Total liabilities and stockholders’ equity | $ 22,849 | $ 21,779 |
Consolidated Balance Sheets (C3
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares | Mar. 31, 2018 | Dec. 31, 2017 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, issued (in shares) | 8,777,988 | 8,777,988 |
Common stock, outstanding (in shares) | 8,777,988 | 8,777,988 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenue | ||
Total net revenue | $ 4,058 | $ 1,699 |
Cost of revenue | ||
Total cost of revenue | 1,743 | 893 |
Expenses | ||
Marketing | 68 | 79 |
General and administrative | 473 | 481 |
Research and development | 953 | 787 |
Income (loss) from operations | 821 | (541) |
Other income | 72 | 33 |
Income (loss) before income taxes | 893 | (508) |
Income taxes | ||
Net income (loss) | $ 893 | $ (508) |
Earnings (loss) per share attributable to Intelligent Systems Corporation: | ||
Basic (in dollars per share) | $ 0.10 | $ (0.06) |
Diluted (in dollars per share) | $ 0.10 | $ (0.06) |
Basic weighted average common shares outstanding (in shares) | 8,777,988 | 8,743,299 |
Diluted weighted average common shares outstanding (in shares) | 8,912,130 | 8,743,299 |
Service [Member] | ||
Revenue | ||
Total net revenue | $ 3,963 | $ 1,699 |
Cost of revenue | ||
Total cost of revenue | 1,607 | 893 |
Product [Member] | ||
Revenue | ||
Total net revenue | 95 | |
Cost of revenue | ||
Total cost of revenue | $ 136 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Net income (loss) | $ 893 | $ (508) |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments | 1 | (8) |
Unrealized gain on available-for-sale marketable securities | (17) | 16 |
Total comprehensive income (loss) | $ 877 | $ (500) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
OPERATING ACTIVITIES: | ||
Net income (loss) | $ 893 | $ (508) |
Adjustments to reconcile net loss from continuing operations to net cash used for operating activities: | ||
Depreciation and amortization | 131 | 101 |
Stock-based compensation expense | 13 | 13 |
Non-cash investment expense | 5 | 3 |
Non-cash interest income | (21) | |
Equity in loss of affiliate company | 19 | 10 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (1,716) | 571 |
Other current assets | (2,673) | (161) |
Interest receivable | 16 | |
Other long-term assets | (34) | 20 |
Accounts payable | (192) | (195) |
Accrued payroll | 334 | 63 |
Deferred revenue, current portion | (5) | (83) |
Accrued expenses | 7 | 31 |
Other current liabilities | (7) | (12) |
Deferred revenue, net of current portion | 43 | (16) |
Net cash used for operating activities | (3,187) | (163) |
INVESTING ACTIVITIES: | ||
Purchases of property and equipment | (170) | (48) |
Advances of notes receivable | (485) | |
Purchase of long-term investment | (1,000) | |
Net cash used for investing activities | (655) | (1,048) |
Effects of exchange rate changes on cash | 1 | (8) |
Net decrease in cash | (3,841) | (1,219) |
Cash at beginning of period | 14,024 | 17,724 |
Cash at end of period | $ 10,183 | $ 16,505 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation | 3 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1. 10 not three March 31, 2018 2017. three March 31, 2018 not December 31, 2017, 10 There have been no 2014 09, 606 first 2018 2, 10 December 31, 2017. As a result of the implementation of Topic 606, December 31, 2017 Three Months Ended Twelve Months Ended ( in thousands) Dec . 31, 2017 Sept . 30 2017 June 30, 2017 Mar . 31, 2017 Dec. 31, 2017 R evenue Services $ 166 $ 162 $ 159 $ 149 $ 636 Products (166 ) (162 ) (159 ) (149 ) (636 ) Total net revenue − − − − − Cost of Revenue Services 62 51 50 46 209 Products (62 ) (51 ) (50 ) (46 ) (209 ) Total cost of revenue − − − − − Net Income $ − $ − $ − $ − $ − |
Note 2 - New Accounting Standar
Note 2 - New Accounting Standards | 3 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | 2. New Accounting Standards – A ccounting P ronouncements Adopted: In May 2014, 2014 09, 606 2014 09 2014 09 first 2018 not March 31, 2017, $53,000 $10,000 $43,000 Recent Accounting Pronouncements: In February 2016, 2016 02, 842 December 15, 2018. not We have considered all other recently issued accounting pronouncements and do not |
Note 3 - Notes Receivable
Note 3 - Notes Receivable | 3 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
Financing Receivables [Text Block] | 3. September 30, 2017, $1,500,000 $750,000. December 31, 2017, $500,000 $1,250,000 December 31, 2017. March 31, 2018, $250,000 6.0 fourth one fourteen On March 16, 2018, $250,000 6.0 six In the quarter ended March 31, 2018, $435,000 $235,000. 5.0 third ten |
Note 4 - Stock-based Compensati
Note 4 - Stock-based Compensation | 3 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 4. based Compensation March 31, 2018, three three March 31, 2018 2017 $13,000 March 31, 2018 2017. As of March 31, 2018, $64,000 No three March 31, 2018. March 31, 2018: # of Shares Wgt Avg Exercise Price Wgt Avg Remaining Contractual Life in Years Aggregate Value Outstanding at March 31, 2018 243,500 $ 2.17 4.7 $ 716,655 Vested and exercisable at March 31, 2018 206,500 $ 1.87 4.0 $ 669,565 The estimated fair value of options granted is calculated using the Black-Scholes option pricing model with assumptions as previously disclosed in our 2017 10 The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the company’s closing stock price on the last trading day of the first 2018 March 31, 2018. |
Note 5 - Fair Value of Financia
Note 5 - Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
Fair Value, Option [Text Block] | 5. Financial instruments that potentially subject us to concentrations of credit risk consist principally of cash, marketable securities and trade accounts. Our available cash is held in accounts managed by third may no no not |
Note 6 - Fair Value Measurement
Note 6 - Fair Value Measurements | 3 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 6. not GAAP establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable input be used when available. Observable inputs are based on data obtained from sources independent of the company that market participants would use in pricing the asset or liability. Unobservable inputs are inputs that reflect the company’s assumptions about the estimates market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is measured in three • Level 1 Valuations based on quoted prices in active markets for identical assets or liabilities that we have the ability to access. Valuation adjustments and block discounts are not 1 • Level 2 Valuations based on quoted prices in less active, dealer or broker markets. Fair values are primarily obtained from third • Level 3 Valuations derived from other valuation methodologies, including pricing models, discounted cash flow models and similar techniques, and not 3 not In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. Our available-for-sale investments are classified within Level 1 The fair value of equity method and cost method investments has not no |
Note 7 - Concentration of Reven
Note 7 - Concentration of Revenue | 3 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
Concentration Risk Disclosure [Text Block] | 7. 10 three March 31, 2018 2017. Three Months Ended March 31 , 2018 201 7 Customer A 11.1% 11.6% Customer B 5.5% 13.6% Customer C 7.5% 15.2% Customer D 20.3% 14.5% Customer E 27.3% −% |
Note 8 - Commitments and Contin
Note 8 - Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
Legal Matters and Contingencies [Text Block] | 8. 9 2017 10 April 1, 2018, three April 1, 2018 March 31, 2021 May 31, 2022 Year ended December 31, (in thousands) 2018 (April 1 – December 31) $ 339 2019 405 2020 390 2021 212 2022 44 Total minimum lease payments $ 1,392 |
Note 9 - Income Taxes
Note 9 - Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 9. not not There were no March 31, 2018 December 31, 2017. no no We file a consolidated U.S. federal income tax return for all subsidiaries in which our ownership equals or exceeds 80%, no 2013. |
Note 10 - Subsequent Event
Note 10 - Subsequent Event | 3 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 10. 3, not |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Notes Tables | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | Three Months Ended Twelve Months Ended ( in thousands) Dec . 31, 2017 Sept . 30 2017 June 30, 2017 Mar . 31, 2017 Dec. 31, 2017 R evenue Services $ 166 $ 162 $ 159 $ 149 $ 636 Products (166 ) (162 ) (159 ) (149 ) (636 ) Total net revenue − − − − − Cost of Revenue Services 62 51 50 46 209 Products (62 ) (51 ) (50 ) (46 ) (209 ) Total cost of revenue − − − − − Net Income $ − $ − $ − $ − $ − |
Note 4 - Stock-based Compensa18
Note 4 - Stock-based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Notes Tables | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable [Table Text Block] | # of Shares Wgt Avg Exercise Price Wgt Avg Remaining Contractual Life in Years Aggregate Value Outstanding at March 31, 2018 243,500 $ 2.17 4.7 $ 716,655 Vested and exercisable at March 31, 2018 206,500 $ 1.87 4.0 $ 669,565 |
Note 7 - Concentration of Rev19
Note 7 - Concentration of Revenue (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Notes Tables | |
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | Three Months Ended March 31 , 2018 201 7 Customer A 11.1% 11.6% Customer B 5.5% 13.6% Customer C 7.5% 15.2% Customer D 20.3% 14.5% Customer E 27.3% −% |
Note 8 - Commitments and Cont20
Note 8 - Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Notes Tables | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Year ended December 31, (in thousands) 2018 (April 1 – December 31) $ 339 2019 405 2020 390 2021 212 2022 44 Total minimum lease payments $ 1,392 |
Note 1 - Basis of Presentatio21
Note 1 - Basis of Presentation - Impact of Topic 606 (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2017 | |
Revenue | ||||||
Total net revenue | $ 4,058 | $ 1,699 | ||||
Cost of revenue | ||||||
Total cost of revenue | 1,743 | 893 | ||||
Net Income | 893 | (508) | ||||
Service [Member] | ||||||
Revenue | ||||||
Total net revenue | 3,963 | 1,699 | ||||
Cost of revenue | ||||||
Total cost of revenue | 1,607 | 893 | ||||
Product [Member] | ||||||
Revenue | ||||||
Total net revenue | 95 | |||||
Cost of revenue | ||||||
Total cost of revenue | $ 136 | |||||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | ||||||
Revenue | ||||||
Total net revenue | ||||||
Cost of revenue | ||||||
Total cost of revenue | ||||||
Net Income | ||||||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | Service [Member] | ||||||
Revenue | ||||||
Total net revenue | 166 | 162 | 159 | 149 | 636 | |
Cost of revenue | ||||||
Total cost of revenue | 62 | 51 | 50 | 46 | 209 | |
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | Product [Member] | ||||||
Revenue | ||||||
Total net revenue | (166) | (162) | (159) | (149) | (636) | |
Cost of revenue | ||||||
Total cost of revenue | $ (62) | $ (51) | $ (50) | $ (46) | $ (209) |
Note 2 - New Accounting Stand22
Note 2 - New Accounting Standards (Details Textual) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest, Total | $ 893,000 | $ (508,000) |
Cost of Revenue, Total | $ 1,743,000 | 893,000 |
Accounting Standards Update 2014-09 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | 43,000 | |
Accounting Standards Update 2014-09 [Member] | Restatement Adjustment [Member] | ||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest, Total | 53,000 | |
Cost of Revenue, Total | $ 10,000 |
Note 3 - Notes Receivable (Deta
Note 3 - Notes Receivable (Details Textual) - USD ($) | Mar. 16, 2018 | May 09, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 |
Privately-Held Identity and Professional Services Company With Ties to the FinTech Industry [Member] | |||||
Receivable Commitment to Lend | $ 1,500,000 | ||||
Payments to Acquire Notes Receivable | $ 250,000 | $ 500,000 | $ 750,000 | ||
Financing Receivable, Gross | $ 1,250,000 | ||||
Notes Receivable, Stated Interest Rate | 6.00% | 6.00% | |||
Notes Receivable, Renewal Term | 1 year | ||||
Warrants, Exercised, Percentage | 14.00% | ||||
Notes Receiavble Term | 180 days | ||||
Privately-Held Identity and Professional Services Company With Ties to the FinTech Industry [Member] | Subsequent Event [Member] | |||||
Payments to Acquire Notes Receivable | $ 250,000 | ||||
Private Limited India Based Company in the FinTech Industry [Member] | |||||
Receivable Commitment to Lend | $ 435,000 | ||||
Payments to Acquire Notes Receivable | $ 235,000 | ||||
Notes Receivable, Stated Interest Rate | 5.00% | ||||
Private Limited India Based Company in the FinTech Industry [Member] | Maximum [Member] | |||||
Notes Receivable, Conversion, Percentage | 10.00% |
Note 4 - Stock-based Compensa24
Note 4 - Stock-based Compensation (Details Textual) shares in Thousands | 3 Months Ended | |
Mar. 31, 2018USD ($)shares | Mar. 31, 2017USD ($) | |
Number of Stock-based Compensation Plans in Effect | 3 | |
Allocated Share-based Compensation Expense, Total | $ 13,000 | $ 13,000 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total | $ 64,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares | 0 |
Note 4 - Stock-based Compensa25
Note 4 - Stock-based Compensation - Summary of Stock Options (Details) | 3 Months Ended |
Mar. 31, 2018USD ($)$ / sharesshares | |
Shares outstanding (in shares) | shares | 243,500 |
Shares outstanding, weighted average exercise price (in dollars per share) | $ / shares | $ 2.17 |
Shares outstanding, weighted average remaining contractual life (Year) | 4 years 255 days |
Shares outstanding, aggregate intrinsic value | $ | $ 716,655 |
Shares vested and exercisable (in shares) | shares | 206,500 |
Shares vested and exercisable, weighted average exercise price (in dollars per share) | $ / shares | $ 1.87 |
Shares vested and exercisable, weighted average remaining contractual life (Year) | 4 years |
Shares vested and exercisable, aggregate intrinsic value | $ | $ 669,565 |
Note 7 - Concentration of Rev26
Note 7 - Concentration of Revenue - Concentration of Revenue (Details) - Customer Concentration Risk [Member] - Sales Revenue, Net [Member] | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Customer A [Member] | ||
Concentration risk | 11.10% | 11.60% |
Customer B [Member] | ||
Concentration risk | 5.50% | 13.60% |
Customer C [Member] | ||
Concentration risk | 7.50% | 15.20% |
Customer D [Member] | ||
Concentration risk | 20.30% | 14.50% |
Customer E [Member] | ||
Concentration risk | 27.30% |
Note 8 - Commitments and Cont27
Note 8 - Commitments and Contingencies - Future Minimum Lease Payments (Details) $ in Thousands | Mar. 31, 2018USD ($) |
2018 (April 1 – December 31) | $ 339 |
2,019 | 405 |
2,020 | 390 |
2,021 | 212 |
2,022 | 44 |
Total minimum lease payments | $ 1,392 |
Note 9 - Income Taxes (Details
Note 9 - Income Taxes (Details Textual) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Unrecognized Tax Benefits, Ending Balance | $ 0 | $ 0 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued, Total | 0 | $ 0 |
Liability for Uncertainty in Income Taxes, Current | $ 0 |