Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 13, 2019 | |
Document Information [Line Items] | ||
Entity Registrant Name | INFORMATION ANALYSIS INC | |
Entity Central Index Key | 0000803578 | |
Trading Symbol | iaic | |
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) | 11,211,760 | |
Entity Shell Company | false | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Title of 12(b) Security | Common Stock |
Balance Sheets (Current Period
Balance Sheets (Current Period Unaudited) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 1,535,934 | $ 1,963,956 |
Accounts receivable, net | 690,277 | 652,839 |
Prepaid expenses and other current assets | 50,575 | 393,533 |
Contract assets | 40 | 0 |
Total current assets | 2,276,826 | 3,010,328 |
Right-of-use operating lease asset | 196,877 | |
Property and equipment, net of accumulated depreciation and amortization of $298,661 and $294,424 | 10,241 | 7,147 |
Other assets | 6,281 | 6,281 |
Total assets | 2,490,225 | 3,023,756 |
Current liabilities | ||
Accounts payable | 192,636 | 25,294 |
Commissions payable | 252,886 | 508,083 |
Accrued payroll and related liabilities | 244,075 | 217,751 |
Contract liabilities | 67,146 | 318,552 |
Operating lease liability - current | 99,562 | |
Other accrued liabilities | 55,892 | 81,485 |
Total current liabilities | 912,197 | 1,151,165 |
Operating lease liability - non-current | 98,956 | |
Total liabilities | 1,011,153 | 1,151,165 |
Stockholders' equity | ||
Common stock, $0.01 par value, 30,000,000 shares authorized, 12,854,376 shares issued, 11,211,760 shares outstanding as of June 30, 2019, and 12,844,376 shares issued, 11,201,760 shares outstanding as of December 31, 2018 | 128,543 | 128,443 |
Additional paid-in capital | 14,681,842 | 14,676,006 |
Accumulated deficit | (12,401,102) | (12,001,647) |
Treasury stock, 1,642,616 shares at cost at June 30, 2019, and December 31, 2018 | (930,211) | (930,211) |
Total stockholders' equity | 1,479,072 | 1,872,591 |
Total liabilities and stockholders' equity | $ 2,490,225 | $ 3,023,756 |
Balance Sheets (Current Perio_2
Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Property and equipment, accumulated depreciation and amortization | $ 298,661 | $ 294,424 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 30,000,000 | 30,000,000 |
Common stock, shares issued (in shares) | 12,854,376 | 12,844,376 |
Common stock, shares outstanding (in shares) | 11,211,760 | 11,201,760 |
Treasury stock, shares (in shares) | 1,642,616 | 1,642,616 |
Statements of Operations and Co
Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenues | ||||
Total revenues | $ 3,704,417 | $ 3,707,819 | $ 4,883,240 | $ 5,102,295 |
Cost of revenues | ||||
Total cost of revenues | 3,347,656 | 3,152,465 | 4,203,640 | 3,996,520 |
Gross profit | 356,761 | 555,354 | 679,600 | 1,105,775 |
Selling, general and administrative expenses | 528,575 | 439,535 | 1,014,027 | 910,029 |
Commissions expense | 39,815 | 124,686 | 70,761 | 240,560 |
Loss from operations | (211,629) | (8,867) | (405,188) | (44,814) |
Other income | 3,027 | 2,985 | 5,733 | 5,656 |
Loss before provision for income taxes | (208,602) | (5,882) | (399,455) | (39,158) |
Provision for income taxes | ||||
Net loss | (208,602) | (5,882) | (399,455) | (39,158) |
Comprehensive loss | $ (208,602) | $ (5,882) | $ (399,455) | $ (39,158) |
Net loss per common share - basic (in dollars per share) | $ (0.02) | $ (0.04) | ||
Net loss per common share - diluted (in dollars per share) | $ (0.02) | $ (0.04) | ||
Weighted average common shares outstanding | ||||
Basic (in shares) | 11,207,804 | 11,201,760 | 11,204,799 | 11,201,760 |
Diluted (in shares) | 11,207,804 | 11,201,760 | 11,204,799 | 11,201,760 |
Professional Fees [Member] | ||||
Revenues | ||||
Total revenues | $ 761,629 | $ 1,104,148 | $ 1,523,747 | $ 2,317,795 |
Cost of revenues | ||||
Total cost of revenues | 434,858 | 580,761 | 881,726 | 1,253,342 |
Software Sales [Member] | ||||
Revenues | ||||
Total revenues | 2,942,788 | 2,603,671 | 3,359,493 | 2,784,500 |
Cost of revenues | ||||
Total cost of revenues | $ 2,912,798 | $ 2,571,704 | $ 3,321,914 | $ 2,743,178 |
Statements of Cash Flows (Unaud
Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Net loss | $ (399,455) | $ (39,158) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 2,871 | 5,569 |
Stock option compensation | 4,936 | 15,656 |
Changes in operating assets and liabilities: | ||
Accounts receivable and contract assets | (37,478) | (176,020) |
Prepaid expenses and other current assets | 334,205 | 300,437 |
Accounts payable | 167,342 | (15,424) |
Commissions payable | (255,197) | (94,379) |
Contract liabilities | (251,406) | (253,527) |
Accrued payroll and related liabilities and other accrued liabilities | 11,125 | (381,036) |
Net cash used in operating activities | (423,057) | (637,882) |
Cash flows from investing activities | ||
Acquisition of property and equipment | (5,965) | (2,902) |
Payments received on notes receivable | 1,719 | |
Net cash used in investing activities | (5,965) | (1,183) |
Cash flows from financing activities | ||
Issuance of stock from exercise of options | 1,000 | |
Net cash provided by financing activities | 1,000 | |
Net decrease in cash and cash equivalents | (428,022) | (639,065) |
Cash and cash equivalents, beginning of the period | 1,963,956 | 2,731,510 |
Cash and cash equivalents, end of the period | 1,535,934 | 2,092,445 |
Supplemental cash flow Information | ||
Interest paid | ||
Income taxes paid |
Statements of Changes in Stockh
Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Total |
Balances at Dec. 31, 2017 | $ 128,443 | $ 14,646,406 | $ (11,950,613) | $ (930,211) | $ 1,894,025 |
Net loss | (33,276) | (33,276) | |||
Stock option compensation | 6,288 | 6,288 | |||
Balances at Mar. 31, 2018 | 128,443 | 14,652,694 | (11,983,889) | (930,211) | 1,867,037 |
Balances at Dec. 31, 2017 | 128,443 | 14,646,406 | (11,950,613) | (930,211) | 1,894,025 |
Net loss | (39,158) | ||||
Balances at Jun. 30, 2018 | 128,443 | 14,662,062 | (11,989,771) | (930,211) | 1,870,523 |
Balances at Mar. 31, 2018 | 128,443 | 14,652,694 | (11,983,889) | (930,211) | 1,867,037 |
Net loss | (5,882) | (5,882) | |||
Stock option compensation | 9,368 | 9,368 | |||
Balances at Jun. 30, 2018 | 128,443 | 14,662,062 | (11,989,771) | (930,211) | 1,870,523 |
Balances at Dec. 31, 2018 | 128,443 | 14,676,006 | (12,001,647) | (930,211) | 1,872,591 |
Net loss | (190,853) | (190,853) | |||
Stock option compensation | 4,454 | 4,454 | |||
Balances at Mar. 31, 2019 | 128,443 | 14,680,460 | (12,192,500) | (930,211) | 1,686,192 |
Balances at Dec. 31, 2018 | 128,443 | 14,676,006 | (12,001,647) | (930,211) | 1,872,591 |
Net loss | (399,455) | ||||
Balances at Jun. 30, 2019 | 128,543 | 14,681,842 | (12,401,102) | (930,211) | 1,479,072 |
Balances at Mar. 31, 2019 | 128,443 | 14,680,460 | (12,192,500) | (930,211) | 1,686,192 |
Net loss | (208,602) | (208,602) | |||
Stock option compensation | 482 | 482 | |||
Issuance of stock from exercise of options | 100 | 900 | 1,000 | ||
Balances at Jun. 30, 2019 | $ 128,543 | $ 14,681,842 | $ (12,401,102) | $ (930,211) | $ 1,479,072 |
Note 1 - Summary of Significant
Note 1 - Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Basis of Presentation and Significant Accounting Policies [Text Block] | 1. Summary of Significant Accounting Policies Organization and Business Founded in 1979, Unaudited Interim Financial Statements The accompanying unaudited financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions for Form 10 8 03 X. not December 31, 2018 10 April 1, 2019 ( December 31, 2018, not There have been no June 30, 2019, 1, 10 December 31, 2018, April 1, 2019, 3 Use of Estimates and Assumptions The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results can, and in many cases will, differ from those estimates. Income Taxes As of June 30, 2019, no 8 2018 $7.4 $5.0 December 31, 2019. |
Note 2 - Revenue from Contracts
Note 2 - Revenue from Contracts with Customers | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | 2. Revenue from Contracts with Customers Revenue is recognized when all of the following steps have been taken and criteria met for each contract: • Identification of the contract, or contracts, with a customer - • Identification of the performance obligations in the contract - third not • Determination of the transaction price - • Allocation of the transaction price to the performance obligations in the contract - • Recognition of revenue when, or as, the Company satisf ies performance obligations - Nature of P roducts and S ervices The Company generates revenue from the sales of information technology professional services, sales of third third third 606, Professional services are offered through several arrangements – through time and materials arrangements, fixed-price-per-unit arrangements, fixed-price arrangements, or combinations of these arrangements within individual contracts. Revenue under time and materials arrangements is recognized over time in the period the hours are worked or the expenses are incurred, as control of the benefits of the work is deemed to have passed to the customer as the work is performed. Revenue under fixed-price-per-unit arrangements is recognized at a point in time when delivery of units have occurred and units are accepted by the customer or are reasonably expected to be accepted. Generally, revenue under fixed-price arrangements and mixed arrangements is recognized either over time or at a point in time based on the allocation of transaction pricing to each identified performance obligation as control of each is transferred to the customer. For fixed-price arrangements for which the Company is paid a fixed fee to make itself available to support a customer, with no Third-party software licenses are classified as enterprise server-based software licenses or desktop software licenses, and desktop licenses are further classified by the type of customer and whether the licenses are bulk licenses or individual licenses. The Company’s obligations as the seller for each class differ based on its reseller agreements and whether its customers are government or non-government customers. Revenue from enterprise server-based sales to either government or non-government customers is usually recognized in full at a point in time based on when the customer gains use of the full benefit of the licenses, after the licenses are implemented. If the transaction prices of the performance obligations related to implementation and customer support for the individual contract is material, these obligations are recognized separately over time, as performed. Revenue for desktop software licenses for government customers is usually recognized in full at a point in time, based on when the customer’s administrative contact gains training in and beneficial use of the administrative portal. If the transaction prices of the performance obligations related to implementing the government administrator’s use of the administrative portal and administrator support for the individual contract are material (rare), these obligations are recognized separately over time, as performed. Revenue for bulk desktop software licenses for non-government customers is usually recognized in full at a point in time, based on when the customer’s administrative contact gains training in and beneficial use of the administrative portal. For desktop software licenses sold on an individual license basis to non-government customers, where the Company has no third Third-party support and maintenance contracts for enterprise server-based software include a performance obligation under the Company’s reseller agreements for it to be the first second not Incentive payments are received under reseller agreements with software manufacturers and suppliers where the Company introduces and court a customer, but the sale occurs directly between the customer and the supplier or between the customer and the manufacturer. Since the transfer of control of the licenses cannot be measured from outside of these transactions, revenue is recognized when payment from the manufacturer or supplier is received. Disaggregation of Revenue from Contracts with Customers Contract 3 Months ended 06/30/2019 3 Months ended 06/30/2018 Type Amount Percentage Amount Percentage Services Time & Materials $ 577,779 15.6 % $ 728,940 19.6 % Services Fixed Price 95,235 2.6 % 329,585 8.9 % Services Combination 40,364 1.1 % 39,053 1.1 % Services Fixed Price per Unit 48,251 1.3 % 6,570 0.2 % Third-Party Software 2,789,648 75.3 % 2,455,719 66.2 % Software Support & Maintenance 149,290 4.0 % 145,053 3.9 % Incentive Payments 3,850 0.1 % 2,899 0.1 % Total Revenue $ 3,704,417 $ 3,707,819 Contract 6 Months ended 06/30/2019 6 Months ended 06/30/2018 Type Amount Percentage Amount Percentage Services Time & Materials $ 1,174,530 24.1 % $ 1,526,136 29.9 % Services Fixed Price 214,398 4.4 % 659,444 12.9 % Services Combination 72,648 1.5 % 122,145 2.4 % Services Fixed Price per Unit 62,171 1.3 % 10,070 0.2 % Third-Party Software 3,057,367 62.5 % 2,483,133 48.7 % Software Support & Maintenance 298,152 6.1 % 294,013 5.8 % Incentive Payments 3,974 0.1 % 7,354 0.1 % Total Revenue $ 4,883,240 $ 5,102,295 Contract Balances Accounts Receivable Trade accounts receivable are recorded at the billable amount where the Company has the unconditional right to bill, net of allowances for doubtful accounts. The allowance for doubtful accounts is based on the Company’s assessment of the collectability of accounts. Management regularly reviews the adequacy of the allowance for doubtful accounts by considering the age of each outstanding invoice, each customer's expected ability to pay and collection history, when applicable, to determine whether a specific allowance is appropriate. Accounts receivable deemed uncollectible are charged against the allowance for doubtful accounts when identified. Contract Assets Contract assets consist of assets typically resulting when revenue recognized exceeds the amount billed or billable to the customer due to allocation of transaction price. There were contract assets balances of $40 June 30, 2019, no December 31, 2018. Contract Liabilities Contract liabilities, to which the Company formerly referred as deferred revenue, consist of amounts that have been invoiced and for which the Company has the right to bill, but that have not not $67,146 $318,552 June 30, 2019, December 31, 2018, three six June 30, 2019, $148,862 $298,151, Costs to Obtain or Fulfill a Contract When applicable, the Company recognizes an asset related to the costs incurred to obtain a contract only if it expects to recover those costs and it would not not $1,160 $3,480 June 30, 2019, December 31, 2018, Financing Components In instances where the timing of revenue recognition differs from the timing of invoicing, the Company has determined its contracts do not not Deferred Costs of Revenue Deferred costs of revenue consist of the costs of third $11,306 $294,115 June 30, 2019, December 31, 2018, |
Note 3 - Recently-Adopted Accou
Note 3 - Recently-Adopted Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | 3. Recently-Adopted Accounting Pronouncements In February 2016, 2016 02, “Leases: Topic 842,” No. 2018 10, No. 2018 11, No. 2018 20, No. 2019 01 842” We adopted Topic 842 January 1, 2019, January 1, 2019, January 1, 2019. not January 1, 2019, not January 1, 2019. not not no We have an operating lease which is a real estate lease for our headquarters in Fairfax, Virginia. This lease has a fixed lease term of 49 June 30, 2019. June 30, 2019, not Our operating lease assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. Since our leases do not not We have lease agreements which may not 12 Upon adoption of Topic 842 January 1, 2019, $244,877 $242,696. Our lease agreements do not We do not third The following table provides supplemental balance sheet information related to IAI's operating leases: Balance Sheet Classification June 30, 2019 Assets: Right-to-use operating lease asset $ 196,877 Liabilities: Operating lease liability - current $ 99,562 Operating lease liability - non-current 98,956 Total lease liabilities $ 198,518 The following table reconciles the undiscounted cash flows to the operating lease liabilities recorded in our balance sheet. June 30, 2019 Remainder of 2019 $ 54,096 2020 110,086 2021 46,433 Total lease payments 210,615 Less: discount (12,097 ) Present value of lease liabilities $ 198,518 As of June 30, 2019, 2.0 5.5%. six June 30, 2019, $52,244 six June 30, 2018 $52,244. six June 30, 2019, no 12 |
Note 4 - Stock-based Compensati
Note 4 - Stock-based Compensation | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Share-based Payment Arrangement [Text Block] | 4. Stock-Based Compensation The Company has two 2006 2006 “2006 April 12, 2016. June 1, 2016, 2016 “2016 April 4, 2016. The Company recognizes compensation costs only for those shares expected to vest on a straight-line basis over the requisite service period of the awards. Such options generally vest over periods of six two three six June 30, 2018, Three Months Ended Three Months Ended Six Months Ended Six Months Ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Risk-free interest rate 2.31% 2.71% - 2.92% 2.31% 2.65% - 2.92% Dividend yield 0% 0% 0% 0% Expected term (in years) 5 5 5 5 Expected volatility 57.9% 49.5% - 51.3% 57.9% 49.0% - 51.3% 2016 The 2016 June 1, 2016, April 4, 2026. 2016 may 2016 1,000,000. 2016 no ten June 30, 2019, 373,500 2016 344,500 2006 The 2006 May 18, 2006, April 12, 2016. 2006 2006 no ten three 2006 not 1,950,000. 978,000 2006 June 30, 2019, The status of the options issued under the foregoing option plans as of June 30, 2019, three six June 30, 2019, Options outstanding Weighted average Weighted average Aggregate exercise price remaining intrinsic Incentive Options Shares per share contractual term value Outstanding at January 1, 2019 1,376,500 $ 0.23 Options granted - - Options exercised - - Options expired (4,500 ) 0.13 Options forfeited - - Outstanding at March 31, 2019 1,372,000 $ 0.23 Options granted 3,000 0.21 Options exercised (10,000 ) 0.10 Options expired (11,000 ) 0.08 Options forfeited (2,500 ) 0.46 Outstanding at June 30, 2019 1,351,500 $ 0.23 4 years, 4 months $ 33,783 Exercisable at June 30, 2019 1,322,500 $ 0.23 4 years, 3 months $ 33,783 There were 3,000 three six June 30, 2019, none 30,000 160,000 three six June 30, 2018, none three six June 30, 2019, $0.11 10,000 three six June 30, 2019, no three six June 30, 2018. June 30, 2019, $1,877 six Total compensation expense related to these plans was $482 $9,368 three June 30, 2019 2018, $0 $218, $4,936 $15,656 six June 30, 2019 2018, $0 $218, Nonvested option awards as of June 30, 2019 three six June 30, 2019 Nonvested Weighted average grant date Shares fair value Nonvested at January 1, 2019 148,500 $ 0.20 Granted - - Vested (107,500 ) 0.21 Forfeited - - Nonvested at March 31, 2019 41,000 $ 0.17 Granted 3,000 0.11 Vested (12,500 ) 0.17 Forfeited (2,500 ) 0.21 Nonvested at June 30, 2019 29,000 $ 0.16 |
Note 5 - Revolving Line of Cred
Note 5 - Revolving Line of Credit | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Schedule of Line of Credit Facilities [Table Text Block] | 5. Revolving L ine of Credit The Company has a revolving line of credit with a bank providing for demand or short-term borrowings of up to $1,000,000. May 31, 2020. June 30, 2019, no not twelve |
Note 6 - Loss per Share
Note 6 - Loss per Share | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 6. Loss Per Share Basic loss per share excludes dilution and is computed by dividing loss available to common shareholders by the weighted-average number of shares outstanding for the period. Diluted earnings (loss) per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock, except for periods when the Company reports a net loss because the inclusion of such items would be antidilutive. The antidilutive effect of 185,234 540,462 three June 30, 2019 2018, 229,741 559,498 six June 30, 2019 2018, The following is a reconciliation of the amounts used in calculating basic and diluted net loss per common share: Per share Net loss Shares amount Basic net loss per common share for the three months ended June 30, 2019: Loss available to common shareholders $ (208,602 ) 11,207,804 $ (0.02 ) Effect of dilutive stock options - - - Diluted net loss per common share for the three months ended June 30, 2019 $ (208,602 ) 11,207,804 $ (0.02 ) Basic net loss per common share for the three months ended June 30, 2018: Loss available to common shareholders $ (5,882 ) 11,201,760 $ - Effect of dilutive stock options - - - Diluted net loss per common share for the three months ended June 30, 2018 $ (5,882 ) 11,201,760 $ - Basic net loss per common share for the six months ended June 30, 2019: Loss available to common shareholders $ (399,455 ) 11,204,799 $ (0.04 ) Effect of dilutive stock options - - - Diluted net loss per common share for the six months ended June 30, 2019 $ (399,455 ) 11,204,799 $ (0.04 ) Basic net loss per common share for the six months ended June 30, 2018: Loss available to common shareholders $ (39,158 ) 11,201,760 $ - Effect of dilutive stock options - - - Diluted net loss per common share for the six months ended June 30, 2018 $ (39,158 ) 11,201,760 $ - |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Organization and Business [Policy Text Block] | Organization and Business Founded in 1979, |
Basis of Accounting, Policy [Policy Text Block] | Unaudited Interim Financial Statements The accompanying unaudited financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions for Form 10 8 03 X. not December 31, 2018 10 April 1, 2019 ( December 31, 2018, not There have been no June 30, 2019, 1, 10 December 31, 2018, April 1, 2019, 3 |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates and Assumptions The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results can, and in many cases will, differ from those estimates. |
Income Tax, Policy [Policy Text Block] | Income Taxes As of June 30, 2019, no 8 2018 $7.4 $5.0 December 31, 2019. |
Note 2 - Revenue from Contrac_2
Note 2 - Revenue from Contracts with Customers (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Contract 3 Months ended 06/30/2019 3 Months ended 06/30/2018 Type Amount Percentage Amount Percentage Services Time & Materials $ 577,779 15.6 % $ 728,940 19.6 % Services Fixed Price 95,235 2.6 % 329,585 8.9 % Services Combination 40,364 1.1 % 39,053 1.1 % Services Fixed Price per Unit 48,251 1.3 % 6,570 0.2 % Third-Party Software 2,789,648 75.3 % 2,455,719 66.2 % Software Support & Maintenance 149,290 4.0 % 145,053 3.9 % Incentive Payments 3,850 0.1 % 2,899 0.1 % Total Revenue $ 3,704,417 $ 3,707,819 Contract 6 Months ended 06/30/2019 6 Months ended 06/30/2018 Type Amount Percentage Amount Percentage Services Time & Materials $ 1,174,530 24.1 % $ 1,526,136 29.9 % Services Fixed Price 214,398 4.4 % 659,444 12.9 % Services Combination 72,648 1.5 % 122,145 2.4 % Services Fixed Price per Unit 62,171 1.3 % 10,070 0.2 % Third-Party Software 3,057,367 62.5 % 2,483,133 48.7 % Software Support & Maintenance 298,152 6.1 % 294,013 5.8 % Incentive Payments 3,974 0.1 % 7,354 0.1 % Total Revenue $ 4,883,240 $ 5,102,295 |
Note 3 - Recently-Adopted Acc_2
Note 3 - Recently-Adopted Accounting Pronouncements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Assets and Liabilities, Lessee [Table Text Block] | Balance Sheet Classification June 30, 2019 Assets: Right-to-use operating lease asset $ 196,877 Liabilities: Operating lease liability - current $ 99,562 Operating lease liability - non-current 98,956 Total lease liabilities $ 198,518 |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | June 30, 2019 Remainder of 2019 $ 54,096 2020 110,086 2021 46,433 Total lease payments 210,615 Less: discount (12,097 ) Present value of lease liabilities $ 198,518 |
Note 4 - Stock-based Compensa_2
Note 4 - Stock-based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Three Months Ended Three Months Ended Six Months Ended Six Months Ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Risk-free interest rate 2.31% 2.71% - 2.92% 2.31% 2.65% - 2.92% Dividend yield 0% 0% 0% 0% Expected term (in years) 5 5 5 5 Expected volatility 57.9% 49.5% - 51.3% 57.9% 49.0% - 51.3% |
Share-based Payment Arrangement, Option, Activity [Table Text Block] | Options outstanding Weighted average Weighted average Aggregate exercise price remaining intrinsic Incentive Options Shares per share contractual term value Outstanding at January 1, 2019 1,376,500 $ 0.23 Options granted - - Options exercised - - Options expired (4,500 ) 0.13 Options forfeited - - Outstanding at March 31, 2019 1,372,000 $ 0.23 Options granted 3,000 0.21 Options exercised (10,000 ) 0.10 Options expired (11,000 ) 0.08 Options forfeited (2,500 ) 0.46 Outstanding at June 30, 2019 1,351,500 $ 0.23 4 years, 4 months $ 33,783 Exercisable at June 30, 2019 1,322,500 $ 0.23 4 years, 3 months $ 33,783 |
Schedule of Nonvested Share Activity [Table Text Block] | Nonvested Weighted average grant date Shares fair value Nonvested at January 1, 2019 148,500 $ 0.20 Granted - - Vested (107,500 ) 0.21 Forfeited - - Nonvested at March 31, 2019 41,000 $ 0.17 Granted 3,000 0.11 Vested (12,500 ) 0.17 Forfeited (2,500 ) 0.21 Nonvested at June 30, 2019 29,000 $ 0.16 |
Note 6 - Loss per Share (Tables
Note 6 - Loss per Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Per share Net loss Shares amount Basic net loss per common share for the three months ended June 30, 2019: Loss available to common shareholders $ (208,602 ) 11,207,804 $ (0.02 ) Effect of dilutive stock options - - - Diluted net loss per common share for the three months ended June 30, 2019 $ (208,602 ) 11,207,804 $ (0.02 ) Basic net loss per common share for the three months ended June 30, 2018: Loss available to common shareholders $ (5,882 ) 11,201,760 $ - Effect of dilutive stock options - - - Diluted net loss per common share for the three months ended June 30, 2018 $ (5,882 ) 11,201,760 $ - Basic net loss per common share for the six months ended June 30, 2019: Loss available to common shareholders $ (399,455 ) 11,204,799 $ (0.04 ) Effect of dilutive stock options - - - Diluted net loss per common share for the six months ended June 30, 2019 $ (399,455 ) 11,204,799 $ (0.04 ) Basic net loss per common share for the six months ended June 30, 2018: Loss available to common shareholders $ (39,158 ) 11,201,760 $ - Effect of dilutive stock options - - - Diluted net loss per common share for the six months ended June 30, 2018 $ (39,158 ) 11,201,760 $ - |
Note 1 - Summary of Significa_2
Note 1 - Summary of Significant Accounting Policies (Details Textual) $ in Millions | Jun. 30, 2019USD ($) |
Operating Loss Carryforwards, Total | $ 7.4 |
Operating Loss Carryforward, Amount to Expire in Remainder of Fiscal Year | $ 5 |
Note 2 - Revenue from Contrac_3
Note 2 - Revenue from Contracts with Customers (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |
Contract with Customer, Asset, Net, Current, Total | $ 40 | $ 40 | $ 0 |
Contract with Customer, Liability, Current | 67,146 | 67,146 | 318,552 |
Contract with Customer, Liability, Revenue Recognized | 148,862 | 298,151 | |
Capitalized Contract Cost, Net, Total | 1,160 | 1,160 | 3,480 |
Prepaid Expenses and Other Current Assets [Member] | |||
Deferred Costs of Revenue | $ 11,306 | $ 11,306 | $ 294,115 |
Note 2 - Revenue from Contrac_4
Note 2 - Revenue from Contracts with Customers - Disaggregation of Revenue from Contracts with Customers (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenue, Amount | $ 3,704,417 | $ 3,707,819 | $ 4,883,240 | $ 5,102,295 |
Revenue Benchmark [Member] | Product Concentration Risk [Member] | ||||
Revenue, Percentage | ||||
Services Time and Materials [Member] | ||||
Revenue, Amount | $ 577,779 | $ 728,940 | $ 1,174,530 | $ 1,526,136 |
Services Time and Materials [Member] | Revenue Benchmark [Member] | Product Concentration Risk [Member] | ||||
Revenue, Percentage | 15.60% | 19.60% | 24.10% | 29.90% |
Services Fixed Price [Member] | ||||
Revenue, Amount | $ 95,235 | $ 329,585 | $ 214,398 | $ 659,444 |
Services Fixed Price [Member] | Revenue Benchmark [Member] | Product Concentration Risk [Member] | ||||
Revenue, Percentage | 2.60% | 8.90% | 4.40% | 12.90% |
Services Combination [Member] | ||||
Revenue, Amount | $ 40,364 | $ 39,053 | $ 72,648 | $ 122,145 |
Services Combination [Member] | Revenue Benchmark [Member] | Product Concentration Risk [Member] | ||||
Revenue, Percentage | 1.10% | 1.10% | 1.50% | 2.40% |
Services Fixed Price per Unit [Member] | ||||
Revenue, Amount | $ 48,251 | $ 6,570 | $ 62,171 | $ 10,070 |
Services Fixed Price per Unit [Member] | Revenue Benchmark [Member] | Product Concentration Risk [Member] | ||||
Revenue, Percentage | 1.30% | 0.20% | 1.30% | 0.20% |
Third-Party Software [Member] | ||||
Revenue, Amount | $ 2,789,648 | $ 2,455,719 | $ 3,057,367 | $ 2,483,133 |
Third-Party Software [Member] | Revenue Benchmark [Member] | Product Concentration Risk [Member] | ||||
Revenue, Percentage | 75.30% | 66.20% | 62.50% | 48.70% |
Software Support and Maintenance [Member] | ||||
Revenue, Amount | $ 149,290 | $ 145,053 | $ 298,152 | $ 294,013 |
Software Support and Maintenance [Member] | Revenue Benchmark [Member] | Product Concentration Risk [Member] | ||||
Revenue, Percentage | 4.00% | 3.90% | 6.10% | 5.80% |
Incentive Payments [Member] | ||||
Revenue, Amount | $ 3,850 | $ 2,899 | $ 3,974 | $ 7,354 |
Incentive Payments [Member] | Revenue Benchmark [Member] | Product Concentration Risk [Member] | ||||
Revenue, Percentage | 0.10% | 0.10% | 0.10% | 0.10% |
Note 3 - Recently-Adopted Acc_3
Note 3 - Recently-Adopted Accounting Pronouncements (Details Textual) - USD ($) | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jan. 01, 2019 | Dec. 31, 2018 | |
Lessee, Operating Lease, Term of Contract | 4 years 30 days | |||
Operating Lease, Right-of-Use Asset | $ 196,877 | |||
Operating Lease, Liability, Total | $ 198,518 | |||
Operating Lease, Weighted Average Remaining Lease Term | 2 years | |||
Operating Lease, Weighted Average Discount Rate, Percent | 5.50% | |||
Operating Lease, Expense | $ 52,244 | $ 52,244 | ||
Accounting Standards Update 2016-02 [Member] | ||||
Operating Lease, Right-of-Use Asset | $ 244,877 | |||
Operating Lease, Liability, Total | $ 242,696 |
Note 3 - Recently-Adopted Acc_4
Note 3 - Recently-Adopted Accounting Pronouncements - Balance Sheet Information on Operating Leases (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Right-of-use operating lease asset | $ 196,877 | |
Operating lease liability - current | 99,562 | |
Operating lease liability - non-current | 98,956 | |
Total lease liabilities | $ 198,518 |
Note 3 - Recently-Adopted Acc_5
Note 3 - Recently-Adopted Accounting Pronouncements - Undiscounted Cash Flows to Operating Lease Liabilities (Details) | Jun. 30, 2019USD ($) |
Remainder of 2019 | $ 54,096 |
2020 | 110,086 |
2021 | 46,433 |
Total lease payments | 210,615 |
Less: discount | (12,097) |
Operating Lease, Liability, Total | $ 198,518 |
Note 4 - Stock-based Compensa_3
Note 4 - Stock-based Compensation (Details Textual) - USD ($) | Jun. 01, 2016 | May 18, 2006 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance | 1,351,500 | 1,372,000 | 1,351,500 | 1,376,500 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 3,000 | 30,000 | 3,000 | 160,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 0.11 | $ 0.11 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 10,000 | 0 | 10,000 | 0 | ||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 1,877 | $ 1,877 | ||||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 180 days | |||||||
Share-based Payment Arrangement, Expense | $ 482 | $ 9,368 | $ 4,936 | $ 15,656 | ||||
Share-based Payment Arrangement, Nonemployee [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 0 | 0 | 0 | ||||
Share-based Payment Arrangement, Expense | $ 0 | $ 218 | $ 0 | $ 218 | ||||
The 2016 Stock Incentive Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,000,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance | 373,500 | 373,500 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 344,500 | 344,500 | ||||||
The 2006 Stock Incentive Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,950,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance | 978,000 | 978,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 978,000 | 978,000 |
Note 4 - Stock-based Compensa_4
Note 4 - Stock-based Compensation - Assumptions (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Risk-free interest rate | 2.31% | 2.31% | ||
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Expected term (in years) (Year) | 5 years | 5 years | 5 years | 5 years |
Expected volatility | 57.90% | 57.90% | ||
Minimum [Member] | ||||
Risk-free interest rate | 2.71% | 2.65% | ||
Expected volatility | 49.50% | 49.00% | ||
Maximum [Member] | ||||
Risk-free interest rate | 2.92% | 2.92% | ||
Expected volatility | 51.30% | 51.30% |
Note 4 - Stock-based Compensa_5
Note 4 - Stock-based Compensation - Stock Option Activity (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Outstanding, shares, Beginning Balance (in shares) | 1,372,000 | 1,376,500 | 1,376,500 | ||
Outstanding, weighted average exercise price (in dollars per share) | $ 0.23 | $ 0.23 | $ 0.23 | ||
Options granted, shares (in shares) | 3,000 | ||||
Options granted, weighted average exercise price (in dollars per share) | $ 0.21 | ||||
Options exercised, shares (in shares) | (10,000) | 0 | (10,000) | 0 | |
Options exercised, weighted average exercise price (in dollars per share) | $ 0.10 | ||||
Options expired, shares (in shares) | (11,000) | (4,500) | |||
Options expired, weighted average exercise price (in dollars per share) | $ 0.08 | $ 0.13 | |||
Options forfeited, shares (in shares) | (2,500) | ||||
Options forfeited, weighted average exercise price (in dollars per share) | $ 0.46 | ||||
Outstanding, shares (in shares) | 1,351,500 | 1,372,000 | 1,351,500 | ||
Outstanding, weighted average exercise price (in dollars per share) | $ 0.23 | $ 0.23 | $ 0.23 | ||
Outstanding, weighted average remaining contractual term (Year) | 4 years 120 days | ||||
Outstanding, aggregate intrinsic value | $ 33,783 | $ 33,783 | |||
Exercisable, shares (in shares) | 1,322,500 | 1,322,500 | |||
Exercisable, weighted average exercise price (in dollars per share) | $ 0.23 | $ 0.23 | |||
Exercisable, weighted average remaining contractual term (Year) | 4 years 91 days | ||||
Exercisable, aggregate intrinsic value | $ 33,783 | $ 33,783 |
Note 4 - Stock-based Compensa_6
Note 4 - Stock-based Compensation - Nonvested Option Awards Activity (Details) - $ / shares | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Nonvested, Shares, Beginning Balance (in shares) | 41,000 | 148,500 | 148,500 | ||
Nonvested, weighted average grant date fair value (in dollars per share) | $ 0.17 | $ 0.20 | $ 0.20 | ||
Granted, shares (in shares) | 3,000 | 30,000 | 3,000 | 160,000 | |
Granted, weighted average grant date fair value (in dollars per share) | $ 0.11 | $ 0.11 | |||
Vested, shares (in shares) | (12,500) | (107,500) | |||
Vested, weighted average grant date fair value (in dollars per share) | $ 0.17 | $ 0.21 | |||
Options forfeited, shares (in shares) | (2,500) | ||||
Forfeited, weighted average grant date fair value (in dollars per share) | $ 0.21 | ||||
Nonvested, shares (in shares) | 29,000 | 41,000 | 29,000 | ||
Nonvested, weighted average grant date fair value (in dollars per share) | $ 0.16 | $ 0.17 | $ 0.16 |
Note 5 - Revolving Line of Cr_2
Note 5 - Revolving Line of Credit (Details Textual) | Jun. 30, 2019USD ($) |
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,000,000 |
Long-term Line of Credit, Total | $ 0 |
Note 6 - Loss per Share (Detail
Note 6 - Loss per Share (Details Textual) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Payment Arrangement, Option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 185,234 | 540,462 | 229,741 | 559,498 |
Note 6 - Loss per Share - Recon
Note 6 - Loss per Share - Reconciliation of the Amounts Used in Calculating Basic and Diluted Net Loss per Common Share (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Loss available to common shareholders | $ (208,602) | $ (5,882) | $ (399,455) | $ (39,158) |
Loss available to common shareholders, shares (in shares) | 11,207,804 | 11,201,760 | 11,204,799 | 11,201,760 |
Loss available to common shareholders, per share amount (in dollars per share) | $ (0.02) | $ (0.04) | ||
Effect of dilutive stock options, shares (in shares) | ||||
Diluted net loss per common share | $ (208,602) | $ (5,882) | $ (399,455) | $ (39,158) |
Diluted net loss per common share, shares (in shares) | 11,207,804 | 11,201,760 | 11,204,799 | 11,201,760 |
Diluted net loss per common share, per share amount (in dollars per share) | $ (0.02) | $ (0.04) |