Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 30, 2019 | |
Document Information [Line Items] | ||
Entity Registrant Name | INTELLIGENT SYSTEMS CORP | |
Entity Central Index Key | 0000320340 | |
Trading Symbol | ins | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Common Stock, Shares Outstanding (in shares) | 8,850,988 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash | $ 22,071 | $ 18,919 |
Marketable securities | 379 | 349 |
Accounts receivable, net | 3,689 | 3,731 |
Notes and interest receivable, current portion | 581 | |
Other current assets | 1,092 | 1,202 |
Total current assets | 27,231 | 24,782 |
Investments | 760 | 760 |
Notes and interest receivable, net of current portion | 2,861 | 1,745 |
Property and equipment, at cost less accumulated depreciation | 1,445 | 1,513 |
Other long-term assets | 1,637 | 504 |
Total assets | 33,934 | 29,304 |
Current liabilities: | ||
Accounts payable | 272 | 272 |
Deferred revenue, current portion | 905 | 781 |
Accrued payroll | 1,285 | 1,145 |
Accrued expenses | 127 | 71 |
Income tax payable | 943 | 284 |
Other current liabilities | 1,582 | 719 |
Total current liabilities | 5,114 | 3,272 |
Noncurrent liabilities: | ||
Deferred revenue, net of current portion | 74 | 111 |
Long-term lease obligation | 670 | |
Total noncurrent liabilities | 744 | 111 |
Intelligent Systems Corporation stockholders’ equity: | ||
Common stock, $0.01 par value, 20,000,000 shares authorized, 8,850,988 and 8,817,988 issued and outstanding at March 31, 2019 and December 31, 2018, respectively | 89 | 88 |
Additional paid-in capital | 15,133 | 15,050 |
Accumulated other comprehensive loss | (93) | (92) |
Accumulated income | 12,947 | 10,875 |
Total Intelligent Systems Corporation stockholders’ equity | 28,076 | 25,921 |
Total liabilities and stockholders’ equity | $ 33,934 | $ 29,304 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
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) | 8,850,988 | 8,817,988 |
Common stock, outstanding (in shares) | 8,850,988 | 8,817,988 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenue | $ 6,966 | $ 4,058 |
Cost of revenue | ||
Total cost of revenue | 2,534 | 1,743 |
Expenses | ||
Marketing | 38 | 68 |
General and administrative | 594 | 473 |
Research and development | 1,195 | 953 |
Income from operations | 2,605 | 821 |
Other income | 126 | 72 |
Income before income taxes | 2,731 | 893 |
Income taxes | 659 | |
Net income | $ 2,072 | $ 893 |
Earnings per share attributable to Intelligent Systems Corporation: | ||
Basic (in dollars per share) | $ 0.23 | $ 0.10 |
Diluted (in dollars per share) | $ 0.23 | $ 0.10 |
Basic weighted average common shares outstanding (in shares) | 8,841,321 | 8,777,988 |
Diluted weighted average common shares outstanding (in shares) | 8,990,438 | 8,912,130 |
Service [Member] | ||
Revenue | $ 6,166 | $ 3,963 |
Cost of revenue | ||
Total cost of revenue | 2,534 | 1,607 |
Product [Member] | ||
Revenue | 800 | 95 |
Cost of revenue | ||
Total cost of revenue | $ 136 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Net income | $ 2,072 | $ 893 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments | (1) | 1 |
Unrealized loss on available-for-sale marketable securities | (17) | |
Total comprehensive income | $ 2,071 | $ 877 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Total |
Balance (in shares) at Dec. 31, 2017 | 8,777,988 | ||||
Balance at Dec. 31, 2017 | $ 88 | $ 14,877 | $ (143) | $ 4,631 | $ 19,453 |
Stock options exercised (in shares) | |||||
Stock options exercised | |||||
Net income | 893 | 893 | |||
Stock compensation expense | 13 | 13 | |||
Foreign currency translation adjustment | 1 | 1 | |||
Unrealized gain on marketable securities | (17) | (17) | |||
Balance (in shares) at Mar. 31, 2018 | 8,777,988 | ||||
Balance at Mar. 31, 2018 | $ 88 | 14,890 | (159) | 5,524 | $ 20,343 |
Balance (in shares) at Dec. 31, 2018 | 8,817,988 | 8,817,988 | |||
Balance at Dec. 31, 2018 | $ 88 | 15,050 | (92) | 10,875 | $ 25,921 |
Stock options exercised (in shares) | 33,000 | ||||
Stock options exercised | $ 1 | 58 | 59 | ||
Net income | 2,072 | 2,072 | |||
Stock compensation expense | 25 | 25 | |||
Foreign currency translation adjustment | (1) | (1) | |||
Unrealized gain on marketable securities | |||||
Balance (in shares) at Mar. 31, 2019 | 8,850,988 | 8,850,988 | |||
Balance at Mar. 31, 2019 | $ 89 | $ 15,133 | $ (93) | $ 12,947 | $ 28,076 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
OPERATING ACTIVITIES: | ||
Net income | $ 2,072 | $ 893 |
Adjustments to reconcile net income from continuing operations to net cash used for operating activities: | ||
Depreciation and amortization | 180 | 131 |
Stock-based compensation expense | 25 | 13 |
Non-cash investment expense | 5 | |
Non-cash interest income | (30) | (21) |
Equity in loss of affiliate company | 19 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | 42 | (1,716) |
Other current assets | 110 | (2,657) |
Other long-term assets | (37) | (34) |
Accounts payable | (192) | |
Accrued payroll | 140 | 334 |
Deferred revenue, current portion | 124 | (5) |
Accrued expenses | 56 | 7 |
Other current liabilities | 1,061 | (7) |
Deferred revenue, net of current portion | (37) | 43 |
Net cash used for operating activities | 3,706 | (3,187) |
INVESTING ACTIVITIES: | ||
Purchases of property and equipment | (112) | (170) |
Advances of notes receivable | (500) | (485) |
Net cash used for investing activities | (612) | (655) |
FINANCING ACTIVITIES: | ||
Sale of capital stock pursuant to exercise of option | 59 | |
Net cash provided by financing activities | 59 | |
Effects of exchange rate changes on cash | (1) | 1 |
Net increase (decrease) in cash | 3,152 | (3,841) |
Cash at beginning of period | 18,919 | 14,024 |
Cash at end of period | $ 22,071 | $ 10,183 |
Note 1 - Summary of Significant
Note 1 - Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation Throughout this report, the terms “we”, “us”, “ours”, “ISC” and “company” refer to Intelligent Systems Corporation, including its wholly-owned and majority-owned subsidiaries. The unaudited Consolidated Financial Statements presented in this Form 10 not three March 31, 2019 2018. three March 31, 2019 not December 31, 2018, 10 There have been no 2016 02, 842 first 2019 10 December 31, 2018. Accounting Pronouncements Adopted In February 2016, 2016 02, 842 2016 02 2016 02 first 2019 first 2019. not 1 2 3 4 January 1, 2019, $ 1,258,000 not We have considered all other recently issued accounting pronouncements and do not |
Note 2 - Revenue
Note 2 - Revenue | 3 Months Ended |
Mar. 31, 2019 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | 2. REVENUE Disaggregation of Revenue In the following table, revenue is disaggregated by type of revenue for the three March 31, 2019 2018: Three months ended March 31, (in thousands) 2019 2018 License $ 800 $ 95 Professional services 3,964 2,109 Processing and maintenance 1,811 1,624 Third party 391 230 Total $ 6,966 $ 4,058 Foreign revenues are based on the location of the customer. Revenues from customers by geographic areas for the three March 31, 2019 2018 Three months ended March 31, (in thousands) 2019 2018 European Union $ 1,219 $ 836 United States 5,747 3,222 Total $ 6,966 $ 4,058 Concentration of Revenue The following table indicates the percentage of consolidated revenue represented by each customer that represented more than 10 three March 31, 2019 2018. Three Months Ended March 31, 2019 2018 Customer A 47.8 % 27.3 % Customer B 17.1 % 20.3 % Customer C 2.7 % 11.1 % |
Note 3 - Notes Receivable
Note 3 - Notes Receivable | 3 Months Ended |
Mar. 31, 2019 | |
Notes to Financial Statements | |
Financing Receivables [Text Block] | 3. Notes Receivable In the quarter ended September 30, 2017, $1,500,000 March 31, 2019. 6.0 fourth one fourteen During 2018, $550,000 three 2019 $500,000 6.0 six March 2019, December 31, 2020. 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, 2019 | |
Notes to Financial Statements | |
Share-based Payment Arrangement [Text Block] | 4. Stock-based Compensation At March 31, 2019, three three March 31, 2019 2018 $25,000 $13,000 March 31, 2019 2018, As of March 31, 2019, $401,000 30,000 three March 31, 2019. March 31, 2019: # of Shares Wgt Avg Exercise Price Wgt Avg Remaining Contractual Life in Years Aggregate Intrinsic Value Outstanding at March 31, 2019 194,500 $ 5.07 4.9 $ 5,226,180 Vested and exercisable at March 31, 2019 146,000 $ 1.83 3.4 $ 4,395,480 The estimated fair value of options granted is calculated using the Black-Scholes option pricing model with assumptions as previously disclosed in our 2018 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 2019 March 31, 2019. |
Note 5 - Fair Value of Financia
Note 5 - Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2019 | |
Notes to Financial Statements | |
Fair Value, Option [Text Block] | 5. Fair Value of Financial Instruments The carrying value of cash, marketable securities, accounts receivable, accounts payable and certain other financial instruments (such as accrued expenses, and other current liabilities) included in the accompanying consolidated balance sheets approximates their fair value principally due to the short-term maturity of these instruments. 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, 2019 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 6. Fair Value Measurements In determining fair value, the company uses quoted market prices in active markets. GAAP establishes a fair value measurement framework, provides a single definition of fair value, and requires expanded disclosure summarizing fair value measurements. GAAP emphasizes that fair value is a market-based measurement, 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 - Commitments and Contin
Note 7 - Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Notes to Financial Statements | |
Legal Matters and Contingencies [Text Block] | 7. Commitments and Contingencies Leases We have noncancellable operating leases for offices and data centers expiring at various dates through June 2022. March 31, 2019 March 31, 2019 $1,258,000 January 1, 2019. January 1, 2019 March 31, 2019, $1,131,000. not 5.5% March 31, 2019. March 31, 2019 2 Legal Matters There are no may |
Note 8 - Income Taxes
Note 8 - Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 8. Income Taxes We recognize deferred tax liabilities and assets for the expected future tax consequences of events that have been included in the financial statements or tax returns. Deferred tax liabilities and assets are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are recognized, net of a valuation allowance, for the estimated future tax effects of deductible temporary differences and tax credit carry-forwards. A valuation allowance against deferred tax assets is recorded when, and if, based upon available evidence, it is more likely than not not There were no March 31, 2019 December 31, 2018. 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. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation Throughout this report, the terms “we”, “us”, “ours”, “ISC” and “company” refer to Intelligent Systems Corporation, including its wholly-owned and majority-owned subsidiaries. The unaudited Consolidated Financial Statements presented in this Form 10 not three March 31, 2019 2018. three March 31, 2019 not December 31, 2018, 10 There have been no 2016 02, 842 first 2019 10 December 31, 2018. |
New Accounting Pronouncements, Policy [Policy Text Block] | Accounting Pronouncements Adopted In February 2016, 2016 02, 842 2016 02 2016 02 first 2019 first 2019. not 1 2 3 4 January 1, 2019, $1,258,000. not We have considered all other recently issued accounting pronouncements and do not |
Note 2 - Revenue (Tables)
Note 2 - Revenue (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Three months ended March 31, (in thousands) 2019 2018 License $ 800 $ 95 Professional services 3,964 2,109 Processing and maintenance 1,811 1,624 Third party 391 230 Total $ 6,966 $ 4,058 Three months ended March 31, (in thousands) 2019 2018 European Union $ 1,219 $ 836 United States 5,747 3,222 Total $ 6,966 $ 4,058 |
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | Three Months Ended March 31, 2019 2018 Customer A 47.8 % 27.3 % Customer B 17.1 % 20.3 % Customer C 2.7 % 11.1 % |
Note 4 - Stock-based Compensa_2
Note 4 - Stock-based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 Intrinsic Value Outstanding at March 31, 2019 194,500 $ 5.07 4.9 $ 5,226,180 Vested and exercisable at March 31, 2019 146,000 $ 1.83 3.4 $ 4,395,480 |
Note 1 - Summary of Significa_2
Note 1 - Summary of Significant Accounting Policies (Details Textual) - USD ($) | Mar. 31, 2019 | Jan. 01, 2019 |
Operating Lease, Liability, Total | $ 1,131,000 | $ 1,258,000 |
Operating Lease, Right-of-Use Asset | $ 1,131,000 | 1,258,000 |
Accounting Standards Update 2016-02 [Member] | ||
Operating Lease, Liability, Total | 1,258,000 | |
Operating Lease, Right-of-Use Asset | $ 1,258,000 |
Note 2 - Revenue - Disaggregati
Note 2 - Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenue | $ 6,966 | $ 4,058 |
European Union [Member] | ||
Revenue | 1,219 | 836 |
UNITED STATES | ||
Revenue | 5,747 | 3,222 |
License [Member] | ||
Revenue | 800 | 95 |
Professional Services [Member] | ||
Revenue | 3,964 | 2,109 |
Processing and Maintenance [Member] | ||
Revenue | 1,811 | 1,624 |
Third party [Member] | ||
Revenue | $ 391 | $ 230 |
Note 2 - Revenue - Concentratio
Note 2 - Revenue - Concentration of Revenue (Details) - Revenue Benchmark [Member] - Customer Concentration Risk [Member] | 2 Months Ended | 3 Months Ended |
Mar. 03, 2018 | Mar. 31, 2019 | |
Customer A [Member] | ||
Concentration | 27.30% | 47.80% |
Customer B [Member] | ||
Concentration | 20.30% | 17.10% |
Customer C [Member] | ||
Concentration | 11.10% | 2.70% |
Note 3 - Notes Receivable (Deta
Note 3 - Notes Receivable (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Sep. 18, 2017 | |
Privately-Held Identity and Professional Services Company With Ties to the FinTech Industry [Member] | ||||
Receivable Commitment to Lend | $ 1,500,000 | |||
Notes Receivable, Stated Interest Rate | 6.00% | 6.00% | ||
Notes Receivable, Renewal Term | 1 year | |||
Payments to Acquire Notes Receivable | $ 500,000 | $ 550,000 | ||
Notes Receiavble Term | 180 days | |||
Private Limited India Based Company in the FinTech Industry [Member] | ||||
Receivable Commitment to Lend | $ 435,000 | |||
Notes Receivable, Stated Interest Rate | 5.00% | |||
Payments to Acquire Notes Receivable | $ 235,000 | |||
Private Limited India Based Company in the FinTech Industry [Member] | Maximum [Member] | ||||
Notes Receivable, Conversion, Percentage | 10.00% |
Note 4 - Stock-based Compensa_3
Note 4 - Stock-based Compensation (Details Textual) | 3 Months Ended | |
Mar. 31, 2019USD ($)shares | Mar. 31, 2018USD ($) | |
Number of Stock-based Compensation Plans in Effect | 3 | |
Share-based Payment Arrangement, Expense | $ 25,000 | $ 13,000 |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 401,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares | 30,000 |
Note 4 - Stock-based Compensa_4
Note 4 - Stock-based Compensation - Summary of Stock Options (Details) | 3 Months Ended |
Mar. 31, 2019USD ($)$ / sharesshares | |
Shares outstanding (in shares) | shares | 194,500 |
Shares outstanding, weighted average exercise price (in dollars per share) | $ / shares | $ 5.07 |
Shares outstanding, weighted average remaining contractual life (Year) | 4 years 328 days |
Shares outstanding, aggregate intrinsic value | $ | $ 5,226,180 |
Shares vested and exercisable (in shares) | shares | 146,000 |
Shares vested and exercisable, weighted average exercise price (in dollars per share) | $ / shares | $ 1.83 |
Shares vested and exercisable, weighted average remaining contractual life (Year) | 3 years 146 days |
Shares vested and exercisable, aggregate intrinsic value | $ | $ 4,395,480 |
Note 7 - Commitments and Cont_2
Note 7 - Commitments and Contingencies (Details Textual) - USD ($) | Mar. 31, 2019 | Jan. 01, 2019 |
Operating Lease, Right-of-Use Asset | $ 1,131,000 | $ 1,258,000 |
Operating Lease, Liability, Total | $ 1,131,000 | $ 1,258,000 |
Operating Lease, Weighted Average Discount Rate, Percent | 5.50% | |
Operating Lease, Weighted Average Remaining Lease Term | 2 years |
Note 8 - Income Taxes (Details
Note 8 - Income Taxes (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
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 | 0 |
Unrecognized Tax Benefits, Interest on Income Taxes Expense | $ 0 | $ 0 |