Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Mar. 28, 2014 | Jun. 28, 2013 | |
Document Information [Line Items] | ' | ' | ' |
Entity Registrant Name | 'INFINITE GROUP INC | ' | ' |
Entity Central Index Key | '0000884650 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Trading Symbol | 'IMCI | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 25,961,883 | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Public Float | ' | ' | $4,050,000 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Current assets: | ' | ' |
Cash | $16,947 | $56,158 |
Accounts receivable, net of allowances of $70,000 | 592,045 | 585,322 |
Prepaid expenses and other current assets | 22,512 | 22,127 |
Total current assets | 631,504 | 663,607 |
Property and equipment, net | 46,120 | 38,062 |
Investment in equity securities | 247,000 | 0 |
Deposits and other assets | 2,318 | 4,318 |
Total assets | 926,942 | 705,987 |
Current liabilities: | ' | ' |
Accounts payable | 316,873 | 281,017 |
Accrued payroll | 364,120 | 356,164 |
Accrued interest payable | 451,160 | 408,799 |
Accrued retirement and pension | 200,316 | 220,783 |
Accrued expenses - other | 41,933 | 60,015 |
Current maturities of long-term obligations | 21,186 | 22,867 |
Note payable | 30,000 | 30,000 |
Notes payable - related parties | 142,000 | 149,000 |
Total current liabilities | 1,567,588 | 1,528,645 |
Notes payable: | ' | ' |
Banks and other | 1,523,406 | 1,544,593 |
Related parties | 501,324 | 501,324 |
Total liabilities | 3,592,318 | 3,574,562 |
Commitments and contingencies (Notes 10 and 11) | 0 | 0 |
Stockholders' deficiency: | ' | ' |
Common stock, $.001 par value, 60,000,000 shares authorized; 25,961,883 shares issued and outstanding | 25,961 | 25,961 |
Additional paid-in capital | 30,259,102 | 30,164,403 |
Accumulated deficit | -32,950,439 | -33,058,939 |
Total stockholders’ deficiency | -2,665,376 | -2,868,575 |
Total liabilities and stockholders’ deficiency | $926,942 | $705,987 |
CONSOLIDATED_BALANCE_SHEETS_PA
CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Allowances for accounts receivable (in dollars) | $70,000 | $70,000 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 60,000,000 | 60,000,000 |
Common stock, shares issued | 25,961,883 | 25,961,883 |
Common stock, shares outstanding | 25,961,883 | 25,961,883 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Sales | $8,712,617 | $8,725,886 |
Cost of services | 6,383,978 | 6,375,501 |
Gross profit | 2,328,639 | 2,350,385 |
Costs and expenses: | ' | ' |
General and administrative | 1,022,356 | 1,118,397 |
Selling | 865,656 | 1,120,135 |
Defined benefit pension plan | 0 | -480,000 |
Total costs and expenses | 1,888,012 | 1,758,532 |
Operating income | 440,627 | 591,853 |
Loss on equity investment | -23,000 | 0 |
Interest expense: | ' | ' |
Related parties | -46,816 | -52,385 |
Other | -262,311 | -268,271 |
Total interest expense | -309,127 | -320,656 |
Net income | $108,500 | $271,197 |
Net income per share - basic and diluted (in dollars per share) | $0 | $0.01 |
Weighted average number of shares outstanding: | ' | ' |
Weighted average shares outstanding - basic (in shares) | 25,961,883 | 25,961,883 |
Weighted average shares outstanding - diluted (in shares) | 46,360,387 | 47,562,782 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIENCY) (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] |
Balance at Dec. 31, 2011 | ($3,225,391) | $25,961 | $30,078,784 | ($33,330,136) |
Balance (in shares) at Dec. 31, 2011 | ' | 25,961,883 | ' | ' |
Stock based compensation | 85,619 | 0 | 85,619 | 0 |
Net income | 271,197 | 0 | 0 | 271,197 |
Balance at Dec. 31, 2012 | -2,868,575 | 25,961 | 30,164,403 | -33,058,939 |
Balance (in shares) at Dec. 31, 2012 | ' | 25,961,883 | ' | ' |
Stock based compensation | 94,699 | 0 | 94,699 | 0 |
Net income | 108,500 | 0 | 0 | 108,500 |
Balance at Dec. 31, 2013 | ($2,665,376) | $25,961 | $30,259,102 | ($32,950,439) |
Balance (in shares) at Dec. 31, 2013 | ' | 25,961,883 | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Cash flows from operating activities: | ' | ' |
Net income | $108,500 | $271,197 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Stock based compensation | 94,699 | 85,619 |
Reduction of accrued retirement and pension | 0 | -480,000 |
Depreciation | 21,074 | 28,339 |
Loss on equity investment | 23,000 | 0 |
(Increase) decrease in assets: | ' | ' |
Accounts receivable | -120,890 | 438,004 |
Prepaid expenses and other assets | 1,615 | 10,683 |
Increase (decrease) in liabilities: | ' | ' |
Accounts payable | 35,856 | -285,963 |
Accrued expenses | 32,235 | 1,957 |
Accrued pension obligations | -20,467 | 41,133 |
Net cash provided by operating activities | 175,622 | 110,969 |
Cash flows from investing activities: | ' | ' |
Purchases of property and equipment | -29,132 | -10,515 |
Investment in equity securities | -155,833 | 0 |
Net cash used by investing activities | -184,965 | -10,515 |
Cash flows from financing activities: | ' | ' |
Repayments of notes payable | -22,868 | -33,190 |
Repayments of notes payable - related parties | -7,000 | -48,000 |
Net cash used by financing activities | -29,868 | -81,190 |
Net increase (decrease) in cash | -39,211 | 19,264 |
Cash - beginning of year | 56,158 | 36,894 |
Cash - end of year | 16,947 | 56,158 |
Supplemental Disclosures of Cash Flow Information: | ' | ' |
Interest | 264,417 | 315,168 |
Income taxes | $0 | $0 |
PRINCIPLES_OF_CONSOLIDATION_AN
PRINCIPLES OF CONSOLIDATION AND BUSINESS | 12 Months Ended |
Dec. 31, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | ' |
NOTE 1. - PRINCIPLES OF CONSOLIDATION AND BUSINESS | |
The accompanying consolidated financial statements include the financial statements of Infinite Group, Inc. (the Company). | |
The Company operates in one segment, the field of information technology (IT) consulting services, with all operations based in the United States. There were no sales from customers in foreign countries during 2013 and 2012 and all assets are located in the United States. Certain projects required employees to travel to foreign countries during 2013 and 2012. | |
MANAGEMENT_PLANS
MANAGEMENT PLANS | 12 Months Ended | ||
Dec. 31, 2013 | |||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ||
Additional Financial Information Disclosure [Text Block] | ' | ||
NOTE 2. - MANAGEMENT PLANS | |||
The Company reported net income of $108,500 in 2013 and $271,197 in 2012 and a stockholders’ deficit at December 31, 2013 and 2012. The Company’s business strategy is summarized as follows. | |||
The Company plans include continuing to provide cloud related IT managed services and solutions and continuing to expand into the commercial sector including the SMB space. The Company also reviews potential acquisitions. The Company is committed to remaining on the leading edge of technologies and trends in the IT service sector. The Company’s ability to succeed may depend on how successful it is in differentiating itself from competition at a time when competition in these markets is on the rise. | |||
The Company strategy has been to bid for contract vehicles that facilitate Federal and State government procurement requirements which allow the Company to compete further on task orders issued under the contract vehicles. The uncertainty in the Federal process along with a lack of socio-economic advantage makes it difficult for the Company to compete in the government market. The Company’s strategy is to establish partnerships to create a better competitive advantage. | |||
In addition, the Company's strategy is to build its business by delivering a wide range of IT solutions and services that address challenges common to many U.S. Government agencies, state and local governments and commercial companies including SMBs. The Company believes that its core strengths position the Company to respond to the long-term trends and changing demands of the IT markets. | |||
The Company has established several areas of specific focus with the objective of increasing its sales, which include the following: | |||
· | Cloud computing; | ||
· | Managed services that include managing leading edge operations and implementing complex programs in advanced server management; | ||
· | Remote desktop and remote server monitoring and remediation; | ||
· | Help desk and call center services; | ||
· | Third party data storage; | ||
· | Backup and disaster recovery solutions; and | ||
· | Project management. | ||
Continue to Improve Operations and Capital Resources | |||
The Company's goal is to increase sales and generate cash flow from operations on a consistent basis. The Company used ISO 9001-2008 practices as a tool for improvement that has aided expense reduction and internal performance. During 2013, the Company realized expense reductions associated with less travel and other selling expenses due to maintaining fewer business development positions and utilizing more virtual meetings, webinars and conference calls. Beginning in late 2013, the company has hired new sales employees with the objective of increasing sales. | |||
The Company believes the capital resources available under its factoring line of credit, cash from additional related party loans and cash generated by improving the results of its operations provide sources to fund its ongoing operations and to support the internal growth the Company expects to achieve for at least the next 12 months. However, if the Company does not continue to maintain or improve the results of its operations in future periods, the Company expects that additional working capital will be required to fund its business. Although the Company has no assurances, the Company believes that related parties, who have previously provided working capital, will continue to provide working capital loans on similar terms, as in the past, as may be necessary to fund its on-going operations for at least the next 12 months. | |||
If the Company experiences significant growth in its sales, the Company believes that this may require it to increase its financing line, finance additional accounts receivable, or obtain additional working capital from other sources to support its sales growth. There is no assurance that in the event the Company needs additional funds that adequate additional working capital will be available or, if available, will be offered on acceptable terms. | |||
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Accounting Policies [Abstract] | ' | |||||||
Significant Accounting Policies [Text Block] | ' | |||||||
NOTE 3. - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||
Accounts Receivable - Credit is granted to substantially all customers throughout the United States. The Company carries its accounts receivable at invoice amount, less an allowance for doubtful accounts. On a periodic basis, the Company evaluates its accounts receivable and establishes an allowance for doubtful accounts, based on a history of past write-offs and collections and current credit conditions. The Company’s policy is to not accrue interest on past due receivables. Management determined that an allowance of $70,000 for doubtful accounts was reasonably stated at December 31, 2013 and 2012. | ||||||||
Concentration of Credit Risk - Financial instruments that potentially subject the Company to concentration of credit risk consist of cash accounts in financial institutions. The cash accounts occasionally exceed the federally insured deposit amount; however, management does not anticipate nonperformance by financial institutions. Management reviews the financial viability of these institutions on a periodic basis. | ||||||||
Sale of Certain Accounts Receivable - The Company has available a financing line with a financial institution (the Purchaser). In connection with this line of credit the Company adopted FASB ASC 860 “Transfers and Servicing”. FASB ASC 860 provides consistent standards for distinguishing transfers of financial assets that are sales from transfers that are secured borrowings. The Company has a factoring line with the Purchaser which enables the Company to sell selected accounts receivable invoices to the Purchaser with full recourse against the Company. | ||||||||
These transactions qualify for a sale of assets since (1) the Company has transferred all of its right, title and interest in the selected accounts receivable invoices to the financial institution, (2) the Purchaser may pledge, sell or transfer the selected accounts receivable invoices, and (3) the Company has no effective control over the selected accounts receivable invoices since it is not entitled to or obligated to repurchase or redeem the invoices before their maturity and it does not have the ability to unilaterally cause the Purchaser to return the invoices. Under FASB ASC 860, after a transfer of financial assets, an entity recognizes the financial and servicing assets it controls and the liabilities it has incurred, derecognizes financial assets when control has been surrendered, and derecognizes liabilities when extinguished. | ||||||||
Pursuant to the provisions of FASB ASC 860, the Company reflects the transactions as a sale of assets and establishes an accounts receivable from the Purchaser for the retained amount less the costs of the transaction and less any anticipated future loss in the value of the retained asset. The retained amount is generally equal to 20% of the total accounts receivable invoice sold to the Purchaser. The fee for the first 30 days is 1% and additional fees are charged against the average daily balance of net outstanding funds at the prime rate, which was 3.25% per annum as of December 31, 2013 and 2012. The estimated future loss reserve for each receivable included in the estimated value of the retained asset is based on the payment history of the accounts receivable customer and is included in the allowance for doubtful accounts, if any. As collateral, the Company granted the Purchaser a first priority interest in accounts receivable and a blanket lien, which may be junior to other creditors, on all other assets. | ||||||||
The financing line provides the Company the ability to finance up to $2,000,000 of selected accounts receivable invoices, which includes a sublimit for one of the Company’s customers of $1,500,000. During the year ended December 31, 2013, the Company sold approximately $8,132,000 ($7,797,000 - 2012) of its accounts receivable to the Purchaser. As of December 31, 2013, $799,381 ($781,818 - 2012) of these receivables remained outstanding. Additionally, as of December 31, 2013, the Company had approximately $220,000 available under the financing line with the financial institution ($183,000 – 2012). After deducting estimated fees and advances from the Purchaser, the net receivable from the Purchaser amounted to $187,258 at December 31, 2013 ($146,125 - 2012), and is included in accounts receivable in the accompanying balance sheets as of that date. | ||||||||
There were no gains or losses on the sale of the accounts receivable because all were collected. The cost associated with the financing line totaled approximately $176,000 for the year ended December 31, 2013 ($174,300 - 2012). These financing line fees are classified on the statements of income as interest expense. | ||||||||
Property and Equipment - Property and equipment are recorded at cost and are depreciated over their estimated useful lives for financial statement purposes. The cost of improvements to leased properties is amortized over the shorter of the lease term or the life of the improvement. Maintenance and repairs are charged to expense as incurred while improvements are capitalized. | ||||||||
Accounting for the Impairment or Disposal of Long-Lived Assets - The Company follows provisions of FASB ASC 360 “Property, Plant and Equipment” in accounting for the impairment of disposal of long-lived assets. This standard specifies, among other things, that long-lived assets are to be reviewed for potential impairment whenever events or circumstances indicate that the carrying amounts may not be recoverable. The Company determined that there was no impairment of long-lived assets during 2013 and 2012. | ||||||||
Revenue Recognition - The Company’s revenues are generated under both time and material and fixed price agreements. Consulting revenue is recognized when the associated costs are incurred, which coincides with the consulting services being provided. Time and materials service agreements are based on hours worked and are billed at agreed upon hourly rates for the respective position plus other billable direct costs. Fixed price service agreements are based on a fixed amount of periodic billings for recurring services of a similar nature performed according to the contractual arrangements with clients. Under both types of agreements, the delivery of services occurs when an employee works on a specific project or assignment as stated in the contract or purchase order. Based on historical experience, the Company believes that collection is reasonably assured. | ||||||||
During 2013, sales to one client, including sales under subcontracts for services to several entities, accounted for 68.9% of total sales (65.1% - 2012) and 56.4% of accounts receivable at December 31, 2013 (59.5% - 2012). Sales to another client, which consisted of sales under subcontracts, accounted for 25.0% of sales in 2013 (22.1% - 2012) and 37.0% of accounts receivable at December 31, 2013 (19.8% - 2012). | ||||||||
Equity Instruments - For equity instruments issued to consultants and vendors in exchange for goods and services the Company follows the provisions of FASB ASC 718 “Compensation – Stock Compensation.” The measurement date for the fair value of the equity instruments issued is determined at the earlier of (i) the date at which a commitment for performance by the consultant or vendor is reached or (ii) the date at which the consultant or vendor’s performance is complete. In the case of equity instruments issued to consultants, the fair value of the equity instrument is recognized over the term of the consulting agreement. | ||||||||
Stock Options - The Company recognizes compensation expense related to stock based payments over the requisite service period based on the grant date fair value of the awards. The Company uses the Black-Scholes option pricing model to determine the estimated fair value of the awards. | ||||||||
Income Taxes - The Company and its wholly owned subsidiaries file consolidated federal income tax returns. The Company accounts for income tax expense in accordance with FASB ASC 740 “Income Taxes.” Deferred taxes are provided on an asset and liability method whereby deferred tax assets are recognized for deductible temporary differences, operating loss and tax credit carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. | ||||||||
The Company reviews tax positions taken to determine if it is more likely than not that the position would be sustained upon examination resulting in an uncertain tax position. The Company did not have any material unrecognized tax benefit at December 31, 2013 or 2012. The Company recognizes interest accrued and penalties related to unrecognized tax benefits in tax expense. During the years ended December 31, 2013 and 2012, the Company recognized no interest and penalties. | ||||||||
The Company files U.S. federal tax returns and tax returns in various states. The tax years 2010 through 2012 remain open to examination by the taxing jurisdictions to which the Company is subject. | ||||||||
Earnings Per Share - Basic earnings per share is based on the weighted average number of common shares outstanding during the periods presented. Diluted earnings per share is based on the weighted average number of common shares outstanding, as well as dilutive potential common shares which, in the Company’s case, comprise shares issuable under convertible notes payable and stock options. The treasury stock method is used to calculate dilutive shares, which reduces the gross number of dilutive shares by the number of shares purchasable from the proceeds of the options and warrants assumed to be exercised. In a loss year, the calculation for basic and diluted earnings per share is considered to be the same, as the impact of potential common shares is anti-dilutive. | ||||||||
The following table sets forth the computation of basic and diluted earnings per share as of December 31, 2013 and 2012: | ||||||||
Year ended December 31, | ||||||||
2013 | 2012 | |||||||
Numerator for basic net income per share: | ||||||||
Income available to common stockholders | $ | 108,500 | $ | 271,197 | ||||
Denominator for basic net income per share: | ||||||||
Weighted average common shares outstanding | 25,961,883 | 25,961,883 | ||||||
Basic net income per share | $ | 0 | $ | 0.01 | ||||
Numerator for diluted net income per share: | ||||||||
Income available to common stockholders | $ | 108,500 | $ | 271,197 | ||||
Effect of dilutive securities - common stock options and convertible notes payable | 50,879 | 57,369 | ||||||
Diluted earnings per share - income available to common stockholders with assumed conversions | 159,379 | 328,566 | ||||||
Denominator for diluted net income per share: | ||||||||
Weighted average common shares outstanding | 25,961,883 | 25,961,883 | ||||||
Effect of dilutive securities - common stock options and convertible notes payable | 20,398,504 | 21,600,899 | ||||||
Shares used in computing diluted net income per share | 46,360,387 | 47,562,782 | ||||||
Diluted net income per share | $ | 0 | $ | 0.01 | ||||
Anti-dilutive shares excluded from net income per share calculation | 6,092,500 | 3,146,500 | ||||||
For the years ended December 31, 2013 and 2012, convertible debt and options to purchase 6,092,500 and 3,146,500 shares of common stock, respectively, that could potentially dilute basic earnings per share were excluded from the calculation of diluted net income per share because the exercise prices were greater than the average market price of the common shares or their inclusion would have been anti-dilutive. | ||||||||
Fair Value of Financial Instruments - The Company has determined the fair value of debt and other financial instruments using a valuation hierarchy. The hierarchy, which prioritizes the inputs used in measuring fair value, consists of three levels. | ||||||||
Level 1 uses observable inputs such as quoted prices in active markets; | ||||||||
Level 2 uses inputs other than quoted prices in active markets that are either directly or indirectly observable; and | ||||||||
Level 3, which is defined as unobservable inputs in which little or no market data exists, requires the Company to develop its own assumptions. | ||||||||
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). | ||||||||
The carrying amounts of cash, accounts receivable and accounts payable and accrued expenses are reasonable estimates of their fair value due to their short maturity. Based on the borrowing rates currently available to the Company for loans similar to its term debt and notes payable, the fair value approximates its carrying amount. | ||||||||
Equity Investments - The Company accounts for investments in equity securities of other entities under the cost method of accounting if investments in voting equity interests of the investee are less than 20%. The equity method of accounting is used if the Company’s investment in voting stock is greater than or equal to 20% but less than a majority. In considering the accounting method for investments less than 20%, the Company also considers other factors such as its ability to exercise significant influence over operating and financial policies of the investee. If certain factors are present, the Company could account for investments for which it has less than a 20% ownership under the equity method of accounting. | ||||||||
Use of Estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the 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 revenues and expenses during the reporting period. Actual results could differ from those estimates. | ||||||||
Recent Accounting Pronouncements - Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists – The FASB issued Accounting Standards Update (ASU) No. 2013-11. Per this ASU an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. | ||||||||
PROPERTY_AND_EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||||||||
Property, Plant and Equipment Disclosure [Text Block] | ' | |||||||||||||
NOTE 4. - PROPERTY AND EQUIPMENT | ||||||||||||||
Property and equipment consists of: | ||||||||||||||
Depreciable | December 31, | |||||||||||||
Lives | 2013 | 2012 | ||||||||||||
Software | 3 to 5 years | $ | 10,881 | $ | 10,881 | |||||||||
Equipment | 3 to 10 years | 142,846 | 129,960 | |||||||||||
Furniture and fixtures | 5 to 7 years | 13,735 | 9,424 | |||||||||||
Leasehold improvements | 3 years | 1,224 | 1,224 | |||||||||||
168,686 | 151,489 | |||||||||||||
Accumulated depreciation | -122,566 | -113,427 | ||||||||||||
$ | 46,120 | $ | 38,062 | |||||||||||
Depreciation expense was $21,074 and $28,339 for the years ended December 31, 2013 and 2012, respectively. | ||||||||||||||
INVESTMENT_IN_EQUITY_SECURITIE
INVESTMENT IN EQUITY SECURITIES | 12 Months Ended |
Dec. 31, 2013 | |
Investments, Debt and Equity Securities [Abstract] | ' |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | ' |
NOTE 5. - INVESTMENT IN EQUITY SECURITIES | |
During 2013, the Company purchased 270,000 shares of the authorized but unissued shares of Series A Convertible Preferred Stock (“Series A stock”), $.001 par value, of Sudo.me Corporation (goSudo) for an aggregate purchase price of $270,000 pursuant to the terms and conditions of a preferred stock purchase agreement. goSudo is a customer of the Company. As a result, at December 31, 2013, the Company owns approximately 8.8% of the total outstanding shares of goSudo. The source of funds consisted of settlement of accounts receivable of $114,167 due from goSudo and cash of $155,833. Accordingly, the investment of $114,167 is considered a non-cash investing activity. | |
The investment is accounted for using the equity method since Company management exercises significant influence over the operating and financial policies of goSudo. During 2012 and 2013, certain officers and directors of the Company made loans to goSudo and converted loans to Series A stock. In addition, one Company employee is one of three members of the board of directors of goSudo and is active in managing goSudo's business. One Company employee is an officer of goSudo. As a result of the foregoing, the Company is deemed to have significant influence upon goSudo's policy and operating decisions. The investment was written down by $23,000 through December 31, 2013 to $247,000 based on the Company's interest in the net loss of goSudo from May 7, 2013 (date of initial investment) through December 31, 2013. | |
The Series A stock votes together with all other classes of stock as a single class on all actions to be taken by the stockholders. Series A stock dividends accrue at the rate of $.10 per year on each share from the date of issuance. Each Series A share entitles the holder to such number of votes per share based on the number of shares of common stock it is convertible into. At the option of the holder, each share and accrued and unpaid dividends are convertible into shares of common stock at a rate of the quotient of (i) preferred shares plus unpaid dividends divided by (ii) the number of preferred shares. Shares of Series A stock are automatically converted to shares of common stock upon a firm commitment underwritten public offering of common stock yielding gross proceeds of at least $10 million at a minimum price of $3 per share. | |
Unaudited financial information for goSudo as of and for the year ended December 31, 2013 reflects total assets of $17,113, total liabilities of $146,035, and a net loss of $822,796. goSudo is a development stage enterprise and has no revenues for the year ended December 31, 2013. | |
NOTES_PAYABLE_CURRENT
NOTES PAYABLE - CURRENT | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Short-term Debt [Text Block] | ' | |||||||
NOTE 5. - NOTES PAYABLE – CURRENT | ||||||||
Note payable at December 31, 2013 and 2012 consists of an unsecured demand note payable of $30,000 with interest at 10%. | ||||||||
Notes payable - related parties consist of: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Convertible demand note payable to employee, 11% (A) | $ | 59,000 | $ | 59,000 | ||||
Demand note payable to director, 18%, unsecured | 13,000 | 20,000 | ||||||
Convertible demand note payable to director, 12%, unsecured (B) | 40,000 | 40,000 | ||||||
Demand note payable to director, 10%, unsecured | 30,000 | 30,000 | ||||||
$ | 142,000 | $ | 149,000 | |||||
(A) Convertible demand note payable to employee, 11% - At December 31, 2013 and 2012, the Company was obligated to an employee for $59,000 with interest at 11%. The note is secured by a subordinate lien on all of the Company's assets. The principal and accrued interest are convertible at the option of the holder into shares of common stock at $.16 per share. | ||||||||
(B) Convertible demand note payable to director, 12%, - At December 31, 2013 and 2012, the Company was obligated to a director for $40,000 with interest at 12%. The note is unsecured and the principal is convertible at the option of the holder into shares of common stock at $.11 per share. | ||||||||
LONGTERM_OBLIGATIONS
LONG-TERM OBLIGATIONS | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Long-term Debt [Text Block] | ' | |||||||
NOTE 6. - LONG-TERM OBLIGATIONS | ||||||||
Notes Payable - Banks and Other | ||||||||
Term notes payable - banks and other consist of: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Note payable, 10%, secured, due January 1, 2015 | $ | 265,000 | $ | 265,000 | ||||
Convertible term note payable,12%, secured, due January 1, 2016 | 175,000 | 175,000 | ||||||
Convertible notes payable, 6%, due January 1, 2016 | 150,000 | 150,000 | ||||||
Term note payable - PBGC, 6%, secured | 273,000 | 285,000 | ||||||
Obligation to PBGC based on free cash flow | 569,999 | 569,999 | ||||||
Convertible term note payable, 7%, secured, due October 3, 2016 | 100,000 | 100,000 | ||||||
Term notes payable - banks, secured | 11,593 | 22,461 | ||||||
1,544,592 | 1,567,460 | |||||||
Less current maturities | 21,186 | 22,867 | ||||||
$ | 1,523,406 | $ | 1,544,593 | |||||
Note payable, 10%, secured, due January 1, 2015 - During the years ended December 31, 2004 and 2003, the Company issued secured notes payable aggregating $265,000. All of these borrowings bear interest at 10% and are due, as modified during 2012, on January 1, 2015. The notes are secured by a first lien on accounts receivable that are not otherwise used by the Company as collateral for other borrowings and by a second lien on accounts receivable. | ||||||||
Convertible term note payable, 12%, secured, due January 1, 2016 - The Company entered into a secured loan agreement during 2008 for working capital. The loan bears interest at 12%, which is payable monthly and is due, as modified during 2012, on January 1, 2016 for an aggregate of $175,000. During 2009, the note was modified for its conversion into common shares at $.25 per share, which was the closing price of the Company’s common stock on the date of the modification. The note is secured by a subordinate lien on all assets of the Company. | ||||||||
Convertible notes payable, 6%, due January 1, 2016 - At December 31, 2013, the Company was obligated to unrelated third parties for $150,000 ($150,000 - 2012). The principal is convertible at the option of the holder into shares of common stock at $.05 per share. The notes bear interest at 6.0% at December 31, 2013 (6.0% - 2012). The Notes are convertible into shares of common stock subject to the following limitations. The Notes are not convertible to the extent that shares of common stock issuable upon the proposed conversion would result in a change in control of the Company which would limit the use of its net operating loss carryforwards; provided, however if the Company closes a transaction with another third party or parties that results in a change of control which will limit the use of its net operating loss carryforwards, then the foregoing limitation shall lapse. Prior to any conversion by a requesting note holder, each note holder holding a note which is then convertible into 5% or more of the Company’s common stock shall be entitled to participate on a pari passu basis with the requesting note holder and upon any such participation the requesting note holder shall proportionately adjust his conversion request such that, in the aggregate, a change of control, which will limit the use of the Company’s net operating loss carryforwards, does not occur. | ||||||||
Term note payable - PBGC, 6%, secured - On October 17, 2011, in accordance with of the Settlement Agreement dated September 6, 2011 (the “Settlement Agreement”), the Company issued a secured promissory note in favor of the Pension Benefit Guaranty Corporation (the “PBGC”) for $300,000 bearing interest at 6% per annum amortizing in quarterly payments over a seven year period with a balloon payment of $75,000 in 2015. The note is due on September 30, 2018 with a balloon payment of $144,000. See note 10 for further information related to the Osley & Whitney, Inc. Retirement Plan (the "O&W Plan") termination. | ||||||||
Obligation to PBGC based on free cash flow - On October 17, 2011, in accordance with the Settlement Agreement, the Company became obligated to make annual future payments to the PBGC through December 31, 2017 equal to a portion of the Company’s “Free Cash Flow” as defined in the Settlement Agreement, not to exceed $569,999. The annual obligation is contingent upon the Company earning free cash flow in excess of defined amounts which vary by year. The annual amount is due 15 days after the issuance of the Company’s audited financial statements relating to the previous year. The Settlement Agreement contains specific events of default and provisions for remedies upon default. See note 10 for further information related to the O&W Plan termination. | ||||||||
Convertible term note payable, 7%, secured - In accordance with the Settlement Agreement, the Company repurchased 500,000 shares of its common stock from the O&W Plan for $130,000 which was funded from the proceeds of a convertible note in the principal amount of $100,000 to a non-affiliated accredited investor on October 4, 2011 and $30,000 of the Company's working capital. The note bears interest at the rate of 7% per annum, payable monthly, matures on October 3, 2016 and is secured by a subordinate lien on all of the Company’s assets. The note's principal is convertible at the option of the holder into shares of the Company’s common stock at $.10 per share, which was the price of the Company's common stock on the closing date of the agreement. | ||||||||
Term notes payable - banks, secured - The Company renewed a loan agreement during 2010 for the secured financing of a vehicle. The loan had a balance of $5,993 at December 31, 2013, ($11,667 – 2012), bears interest at 5.5% and is due in aggregate monthly installments of approximately $515 through December 2014. The Company entered into capital lease agreements during 2012 and 2010 for the secured financing of office and technology equipment. The remaining capital lease has a balance of $5,600 at December 31, 2013, ($10,794 – 2012) bears interest at 14.9% and is due in monthly installments of $318 through August 2015. | ||||||||
Notes Payable - Related Parties | ||||||||
Related parties - convertible notes payable, 6%, due January 1, 2016 - The Company has various notes payable to related parties totaling $501,324 at December 31, 2013 and 2012, which mature on January 1, 2016 with principal and accrued interest convertible, except for interest on one note for $25,000 which is not convertible, at the option of the holder into shares of common stock at $.05 per share. The notes bear interest at 6.0% at December 31, 2013 (6.0% - 2012). The interest rate is adjusted annually, on January 1st of each year, to a rate equal to the prime rate in effect on December 31st of the immediately preceding year, plus one and one quarter percent, and in no event, shall the interest rate be less than 6% per annum, except that one note for $25,000 has a fixed interest rate of 6%. | ||||||||
The Company executed collateral security agreements with the note holders providing for a subordinate security interest in all of the Company’s assets. Generally, upon notice, prior to the note maturity date, the Company can prepay all or a portion of the outstanding notes. | ||||||||
The Notes are convertible into shares of common stock subject to the following limitations. The Notes are not convertible to the extent that shares of common stock issuable upon the proposed conversion would result in a change in control of the Company which would limit the use of its net operating loss carryforwards; provided, however, if the Company closes a transaction with another third party or parties that results in a change of control which will limit the use of its net operating loss carryforwards, then the foregoing limitation shall lapse. | ||||||||
Prior to any conversion by a requesting note holder, each note holder holding a note which is then convertible into 5% or more of the Company’s common stock shall be entitled to participate on a pari passu basis with the requesting note holder and upon any such participation the requesting note holder shall proportionately adjust his conversion request such that, in the aggregate, a change of control, which will limit the use of the Company’s net operating loss carryforwards, does not occur. | ||||||||
Long-Term Obligations | ||||||||
Minimum future annual payments of long-term obligations as of December 31, 2013 are as follows: | ||||||||
2014 | $ | 21,186 | ||||||
2015 | 354,407 | |||||||
2016 | 938,324 | |||||||
2017 | 581,999 | |||||||
2018 | 150,000 | |||||||
Total long-term obligations | $ | 2,045,916 | ||||||
STOCKHOLDERS_DEFICIENCY
STOCKHOLDERS' DEFICIENCY | 12 Months Ended |
Dec. 31, 2013 | |
Stockholders Equity Note [Abstract] | ' |
Stockholders Equity Note Disclosure [Text Block] | ' |
NOTE 7. - STOCKHOLDERS' DEFICIENCY | |
Preferred Stock - The Company’s certificate of incorporation authorizes its board of directors to issue up to 1,000,000 shares of preferred stock. The stock is issuable in series that may vary as to certain rights and preferences, as determined upon issuance, and has a par value of $.01 per share. As of December 31, 2013 and 2012 there were no preferred shares issued or outstanding. | |
STOCK_OPTION_PLANS
STOCK OPTION PLANS | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' | ||||||||||||
NOTE 8. - STOCK OPTION PLANS | |||||||||||||
The Company’s board of directors and stockholders have approved stock option plans adopted in 1993, 1994, 1995, 1996, 1997, 1998, 1999, and 2005, which have authority to grant options to purchase up to an aggregate of 4,088,833 common shares at December 31, 2013 (4,596,333 - 2012). No further grants may be made from the 1993, 1994, 1995, 1996, 1997, 1998, and 1999 plans. As of December 31, 2013, 1,222,833 options to purchase shares remain unissued under the 2005 plan. Such options may be designated at the time of grant as either incentive stock options or nonqualified stock options. | |||||||||||||
On February 3, 2009, the Company’s board of directors approved the 2009 stock option plan, which grants options to purchase up to an aggregate of 4,000,000 common shares. As of December 31, 2013, 820,500 options to purchase shares remain unissued under the 2009 plan. Options issued to date are nonqualified since the Company has decided not to seek stockholder approval of the 2009 Plan. | |||||||||||||
During 2013, the Company's board of directors approved stock option agreements with consultants and an employee for an aggregate of 3,175,000 common shares at an average exercise price of $.15 per share. On December 31, 2013, subsequent to the option grant date, one consultant became a member of the board of directors. The director has options for 500,000 shares of which 100,000 shares vested on the grant date and the balance vests in equal annual installments over next four years from the grant date. The remaining options are for 2,675,000 of which 425,000 shares vested on the grant dates and the balance vest based on achieving specific sales performance criteria for the Company. | |||||||||||||
The Company grants stock options to its key employees and independent service providers as it deems appropriate. Employee stock options are exercisable as long as the optionee continues to be an employee of the Company and for thirty days subsequent to employee termination. | |||||||||||||
The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model based on the following assumptions. | |||||||||||||
Volatility is based on data used by other companies in the IT services industry and overall greater market volatility of companies during recent periods. The expected life of the options was assumed to be 3.25 or 5.75 years using the simplified method for plain vanilla options as stated in FASB ASC 718 to improve the accuracy of this assumption while simplifying record keeping requirements until more detailed information about the Company’s exercise behavior is available. The risk-free rate for the life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. The following assumptions were used for the years ended December 31, 2013 and 2012. | |||||||||||||
2013 | 2012 | ||||||||||||
Risk-free interest rate | .34% - 2.15% | .83% - 1.10% | |||||||||||
Expected dividend yield | 0% | 0% | |||||||||||
Expected stock price volatility | 75% | 75% | |||||||||||
Expected life of options | 3.25 - 5.75 years | 5.75 years | |||||||||||
The following is a summary of stock option activity, including qualified and non-qualified options for the years ended December 31, 2013 and 2012: | |||||||||||||
Number of | Weighted | Remaining | Aggregate | ||||||||||
Options | Average | Contractual | Intrinsic | ||||||||||
Outstanding | Exercise | Term | Value | ||||||||||
Price | |||||||||||||
Outstanding at December 31, 2011 | 6,889,500 | $ | 0.22 | ||||||||||
Granted | 300,000 | $ | 0.1 | ||||||||||
Expired | -168,500 | $ | 0.2 | ||||||||||
Forfeited | -136,500 | $ | 0.13 | ||||||||||
Outstanding at December 31, 2012 | 6,884,500 | $ | 0.2 | ||||||||||
Granted | 3,587,500 | $ | 0.15 | ||||||||||
Expired | -1,124,833 | $ | 0.09 | ||||||||||
Forfeited | -126,667 | $ | 0.1 | ||||||||||
Outstanding at December 31, 2013 | 9,220,500 | $ | 0.18 | 4.6 years | $ | 38,000 | |||||||
Exercisable at December 31, 2013 | 6,108,000 | $ | 0.2 | 4.8 years | $ | 38,000 | |||||||
At December 31, 2013, there was approximately $74,000 of total unrecognized compensation cost related to outstanding non-vested options, which excludes non-vested options which are performance based for which the option expense cannot be presently quantified. This cost is expected to be recognized over a weighted average period of approximately three years. The total fair value of shares vested during the year ended December 31, 2013 was approximately $12,000. | |||||||||||||
The weighted average fair value of options granted was $.08 and $.12 per share for the years ended December 31, 2013 and 2012, respectively. The exercise price for all options granted equaled or exceeded the market value of the Company’s common stock on the date of grant. | |||||||||||||
Directors’ Stock Option Plan - In April 1993, the Company’s board of directors and stockholders adopted a non-discretionary outside directors' stock option plan that provided for the grant to non-employee directors of non-qualified stock options. No options were issued during 2013 and 2012 and no new options are issuable under the terms of this plan. During 2013, the remaining 7,500 options expired. | |||||||||||||
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Income Tax Disclosure [Text Block] | ' | ||||||||
NOTE 9. - INCOME TAXES | |||||||||
The components of income tax expense (benefit) follows: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Deferred: | |||||||||
Federal | $ | -61,000 | 1,259,000 | ||||||
State | 4,000 | -172,000 | |||||||
-57,000 | 1,087,000 | ||||||||
Change in valuation allowance | 57,000 | -1,087,000 | |||||||
$ | 0 | $ | 0 | ||||||
At December 31, 2013, the Company had federal net operating loss carryforwards of approximately $6,500,000 and various state net operating loss carryforwards of approximately $3,900,000 which expire from 2018 through 2033. These carryforwards exclude federal net operating loss carryforwards from inactive subsidiaries of approximately $6,600,000, as well as net operating loss carryforwards from states that the Company does not presently operate in. Utilization of the net operating loss carryforwards may be subject to a substantial annual limitation due to the ownership change limitations provided by the Internal Revenues Code and similar state provisions. The annual limitation may result in the expiration of the net operating loss carryforwards before utilization. | |||||||||
At December 31, 2013, a net deferred tax asset, representing the future benefit attributed primarily to the available net operating loss carryforwards and defined benefit pension plan expenses, in the amount of approximately $3,100,000 ($3,043,000 - 2012), had been fully offset by a valuation allowance because management believes that the regulatory limitations on utilization of the operating losses and concerns over achieving profitable operations diminish the Company’s ability to demonstrate that it is more likely than not that these future benefits will be realized before they expire. | |||||||||
The following is a summary of the Company's temporary differences and carryforwards which give rise to deferred tax assets and liabilities. | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Deferred tax assets: | |||||||||
Net operating loss carryforwards | $ | 2,447,000 | $ | 2,427,000 | |||||
Defined benefit pension liability | 336,000 | 340,000 | |||||||
Reserves and accrued expenses payable | 317,000 | 275,000 | |||||||
Property and equipment | 0 | 1,000 | |||||||
Gross deferred tax asset | 3,100,000 | 3,043,000 | |||||||
Deferred tax asset valuation allowance | -3,100,000 | -3,043,000 | |||||||
Net deferred tax asset | $ | 0 | $ | 0 | |||||
The differences between the U.S. statutory federal income tax rate and the effective income tax rate in the accompanying consolidated statements of income are as follows. | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Statutory U.S. federal tax rate | 34 | % | 34 | % | |||||
State income taxes | 4.3 | -63.6 | |||||||
Change in valuation allowance | 51.2 | -400.8 | |||||||
Expired stock-based compensation and warrants | 13.5 | 4.4 | |||||||
Other permanent non-deductible items | 6.6 | 1.3 | |||||||
Deferred tax asset adjustment | -109.6 | 0 | |||||||
Expired net operating loss carryforward | 0 | 474.8 | |||||||
Defined benefit pension termination | 0 | -50.1 | |||||||
Effective income tax rate | 0 | % | 0 | % | |||||
EMPLOYEE_RETIREMENT_AND_PENSIO
EMPLOYEE RETIREMENT AND PENSION PLANS | 12 Months Ended | ||
Dec. 31, 2013 | |||
Compensation and Retirement Disclosure [Abstract] | ' | ||
Pension and Other Postretirement Benefits Disclosure [Text Block] | ' | ||
NOTE 10. - EMPLOYEE RETIREMENT AND PENSION PLANS | |||
Retirement Plan - Through December 31, 2012, the Company offered a simple IRA plan as a retirement plan for eligible employees who earned at least $5,000 of annual compensation. Eligible employees could elect to contribute a percentage of their compensation up to a maximum of $11,500. For the year ended December 31, 2012 the Company elected to make a discretionary matching contribution equal to the employee’s contribution, up to a limit of 3% of the employee’s compensation, of $62,775. The accrued liability for the simple IRA plan, including interest, was $200,316 and $220,783, as of December 31, 2013 and 2012, respectively. | |||
Effective, January 1, 2013, the Company began offering a defined contribution 401(k) plan in place of the simple IRA plan. For 2013, 401(k) employee contribution limits are $17,500 plus a catch up contribution for those over age 50 of $5,500. The Company can elect to make a discretionary contribution to the Plan. No discretionary contribution was approved for 2013. | |||
Defined Benefit Pension Plan Terminated in 2011 - The following is a discussion of the O&W Plan. Prior to December 30, 2002, the Company owned 100% of the common stock of Osley & Whitney, Inc. (O&W). On December 30, 2002, the Company sold 100% of the O&W common stock to a third party, but continued to act as the sponsor of the O&W Plan. | |||
On November 1, 2011, in accordance with the terms of the Settlement Agreement, the Company received from the PBGC the executed Agreement for Appointment of Trustee and Termination of the Osley & Whitney, Inc. Retirement Plan (the "O&W Plan") (the “Trusteeship Agreement”). The Trusteeship Agreement: | |||
⋅ | terminated the O&W Plan; | ||
⋅ | appointed the PBGC as the statutory trustee of the O&W Plan; and | ||
⋅ | established November 30, 2001 as the termination date for the O&W Plan. | ||
On October 17, 2011, in accordance with the Settlement Agreement, the Company: (i) purchased 500,000 shares of its common stock from the O&W Plan for $130,000 (ii) issued a promissory note in favor of the PBGC for $300,000 bearing interest at 6% per annum; and (iii) agreed to make future payments through December 31, 2017 out of the Company’s “Free Cash Flow,” as defined in the Settlement Agreement, not to exceed $569,999. The Settlement Agreement contains specific events of default and provisions for remedies upon default. | |||
On March 30, 2012, the Company received the decision of United States Tax Court entered on March 27, 2012 wherein the Court determined that the Company did not have any liability for taxes, excise taxes or penalties for the taxable years 2006 or 2007 related to the O&W Plan. As a result, during 2012, the Company recorded a reduction of $480,000 in obligations previously accrued and reflected related to excise taxes, including late fees and interest on unfunded O&W Plan contributions and recognized a gain of $480,000. | |||
Since the PBGC terminated the O&W Plan as of November 30, 2011, the Company has no further obligations to the O&W Plan and the PBGC other than those stated in the Settlement Agreement with the PBGC which are reflected in the accompanying consolidated financial statements. | |||
COMMITMENTS
COMMITMENTS | 12 Months Ended |
Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments Disclosure [Text Block] | ' |
NOTE 11. - COMMITMENTS | |
Lease Commitments - The Company leases its headquarters facilities under an operating lease agreement that expires in April 2015. Rent expense under the operating lease for the year ended December 31, 2013 was approximately $30,400 ($31,500 - 2012). Future minimum payments required under the lease are $39,700 through April 2015. | |
RELATED_PARTY_ACCOUNTS_RECEIVA
RELATED PARTY ACCOUNTS RECEIVABLE AND ACCRUED INTEREST PAYABLE | 12 Months Ended |
Dec. 31, 2013 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions Disclosure [Text Block] | ' |
NOTE 12. - RELATED PARTY ACCOUNTS RECEIVABLE AND ACCRUED INTEREST PAYABLE | |
Accrued Interest Payable – Included in accrued interest payable is accrued interest payable to related parties of $358,698 at December 31, 2013 ($317,287 - 2012). | |
Accounts Receivable – Certain officers or directors of the Company have made loans to goSudo, a customer of the Company, and can influence the management of this company. Included in accounts receivable are amounts due from this related party of $269 at December 31, 2013 ($71,302 - 2012). | |
SUPPLEMENTAL_CASH_FLOW_INFORMA
SUPPLEMENTAL CASH FLOW INFORMATION | 12 Months Ended |
Dec. 31, 2013 | |
Supplemental Cash Flow Elements [Abstract] | ' |
Cash Flow, Supplemental Disclosures [Text Block] | ' |
NOTE 13. - SUPPLEMENTAL CASH FLOW INFORMATION | |
Non-cash investing and financing transactions, including non-monetary exchanges, consisted of an $114,167 investment in equity securities of goSudo during 2013 and the acquisition of computers and related equipment of $9,182 under the terms of a capital lease during 2012. | |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events [Text Block] | ' |
NOTE 14. - SUBSEQUENT EVENTS | |
Subsequent to year end and through March 28, 2014, the Company issued to certain of its employees common stock options for an aggregate of 1,720,000 shares of which options for 920,000 shares are exercisable at $.115 per share and options for 800,000 shares are exercisable at $.13 per share. Of these options, options for 506,667 shares vested immediately on the date of grant, options for 600,000 will vest based on the satisfaction of specific sales performance criteria and options for 613,333 will vest based on the employees continuing employment with the Company for the two subsequent years. | |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Accounting Policies [Abstract] | ' | |||||||
Trade and Other Accounts Receivable, Policy [Policy Text Block] | ' | |||||||
Accounts Receivable - Credit is granted to substantially all customers throughout the United States. The Company carries its accounts receivable at invoice amount, less an allowance for doubtful accounts. On a periodic basis, the Company evaluates its accounts receivable and establishes an allowance for doubtful accounts, based on a history of past write-offs and collections and current credit conditions. The Company’s policy is to not accrue interest on past due receivables. Management determined that an allowance of $70,000 for doubtful accounts was reasonably stated at December 31, 2013 and 2012. | ||||||||
Concentration Risk, Credit Risk, Policy [Policy Text Block] | ' | |||||||
Concentration of Credit Risk - Financial instruments that potentially subject the Company to concentration of credit risk consist of cash accounts in financial institutions. The cash accounts occasionally exceed the federally insured deposit amount; however, management does not anticipate nonperformance by financial institutions. Management reviews the financial viability of these institutions on a periodic basis. | ||||||||
Sale of Certain Accounts Receivable [Policy Text Block] | ' | |||||||
Sale of Certain Accounts Receivable - The Company has available a financing line with a financial institution (the Purchaser). In connection with this line of credit the Company adopted FASB ASC 860 “Transfers and Servicing”. FASB ASC 860 provides consistent standards for distinguishing transfers of financial assets that are sales from transfers that are secured borrowings. The Company has a factoring line with the Purchaser which enables the Company to sell selected accounts receivable invoices to the Purchaser with full recourse against the Company. | ||||||||
These transactions qualify for a sale of assets since (1) the Company has transferred all of its right, title and interest in the selected accounts receivable invoices to the financial institution, (2) the Purchaser may pledge, sell or transfer the selected accounts receivable invoices, and (3) the Company has no effective control over the selected accounts receivable invoices since it is not entitled to or obligated to repurchase or redeem the invoices before their maturity and it does not have the ability to unilaterally cause the Purchaser to return the invoices. Under FASB ASC 860, after a transfer of financial assets, an entity recognizes the financial and servicing assets it controls and the liabilities it has incurred, derecognizes financial assets when control has been surrendered, and derecognizes liabilities when extinguished. | ||||||||
Pursuant to the provisions of FASB ASC 860, the Company reflects the transactions as a sale of assets and establishes an accounts receivable from the Purchaser for the retained amount less the costs of the transaction and less any anticipated future loss in the value of the retained asset. The retained amount is generally equal to 20% of the total accounts receivable invoice sold to the Purchaser. The fee for the first 30 days is 1% and additional fees are charged against the average daily balance of net outstanding funds at the prime rate, which was 3.25% per annum as of December 31, 2013 and 2012. The estimated future loss reserve for each receivable included in the estimated value of the retained asset is based on the payment history of the accounts receivable customer and is included in the allowance for doubtful accounts, if any. As collateral, the Company granted the Purchaser a first priority interest in accounts receivable and a blanket lien, which may be junior to other creditors, on all other assets. | ||||||||
The financing line provides the Company the ability to finance up to $2,000,000 of selected accounts receivable invoices, which includes a sublimit for one of the Company’s customers of $1,500,000. During the year ended December 31, 2013, the Company sold approximately $8,132,000 ($7,797,000 - 2012) of its accounts receivable to the Purchaser. As of December 31, 2013, $799,381 ($781,818 - 2012) of these receivables remained outstanding. Additionally, as of December 31, 2013, the Company had approximately $220,000 available under the financing line with the financial institution ($183,000 – 2012). After deducting estimated fees and advances from the Purchaser, the net receivable from the Purchaser amounted to $187,258 at December 31, 2013 ($146,125 - 2012), and is included in accounts receivable in the accompanying balance sheets as of that date. | ||||||||
There were no gains or losses on the sale of the accounts receivable because all were collected. The cost associated with the financing line totaled approximately $176,000 for the year ended December 31, 2013 ($174,300 - 2012). These financing line fees are classified on the statements of income as interest expense. | ||||||||
Property, Plant and Equipment, Policy [Policy Text Block] | ' | |||||||
Property and Equipment - Property and equipment are recorded at cost and are depreciated over their estimated useful lives for financial statement purposes. The cost of improvements to leased properties is amortized over the shorter of the lease term or the life of the improvement. Maintenance and repairs are charged to expense as incurred while improvements are capitalized. | ||||||||
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | ' | |||||||
Accounting for the Impairment or Disposal of Long-Lived Assets - The Company follows provisions of FASB ASC 360 “Property, Plant and Equipment” in accounting for the impairment of disposal of long-lived assets. This standard specifies, among other things, that long-lived assets are to be reviewed for potential impairment whenever events or circumstances indicate that the carrying amounts may not be recoverable. The Company determined that there was no impairment of long-lived assets during 2013 and 2012. | ||||||||
Revenue Recognition, Policy [Policy Text Block] | ' | |||||||
Revenue Recognition - The Company’s revenues are generated under both time and material and fixed price agreements. Consulting revenue is recognized when the associated costs are incurred, which coincides with the consulting services being provided. Time and materials service agreements are based on hours worked and are billed at agreed upon hourly rates for the respective position plus other billable direct costs. Fixed price service agreements are based on a fixed amount of periodic billings for recurring services of a similar nature performed according to the contractual arrangements with clients. Under both types of agreements, the delivery of services occurs when an employee works on a specific project or assignment as stated in the contract or purchase order. Based on historical experience, the Company believes that collection is reasonably assured. | ||||||||
During 2013, sales to one client, including sales under subcontracts for services to several entities, accounted for 68.9% of total sales (65.1% - 2012) and 56.4% of accounts receivable at December 31, 2013 (59.5% - 2012). Sales to another client, which consisted of sales under subcontracts, accounted for 25.0% of sales in 2013 (22.1% - 2012) and 37.0% of accounts receivable at December 31, 2013 (19.8% - 2012). | ||||||||
Stockholders Equity, Policy [Policy Text Block] | ' | |||||||
Equity Instruments - For equity instruments issued to consultants and vendors in exchange for goods and services the Company follows the provisions of FASB ASC 718 “Compensation – Stock Compensation.” The measurement date for the fair value of the equity instruments issued is determined at the earlier of (i) the date at which a commitment for performance by the consultant or vendor is reached or (ii) the date at which the consultant or vendor’s performance is complete. In the case of equity instruments issued to consultants, the fair value of the equity instrument is recognized over the term of the consulting agreement. | ||||||||
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | ' | |||||||
Stock Options - The Company recognizes compensation expense related to stock based payments over the requisite service period based on the grant date fair value of the awards. The Company uses the Black-Scholes option pricing model to determine the estimated fair value of the awards | ||||||||
Income Tax, Policy [Policy Text Block] | ' | |||||||
Income Taxes - The Company and its wholly owned subsidiaries file consolidated federal income tax returns. The Company accounts for income tax expense in accordance with FASB ASC 740 “Income Taxes.” Deferred taxes are provided on an asset and liability method whereby deferred tax assets are recognized for deductible temporary differences, operating loss and tax credit carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. | ||||||||
The Company reviews tax positions taken to determine if it is more likely than not that the position would be sustained upon examination resulting in an uncertain tax position. The Company did not have any material unrecognized tax benefit at December 31, 2013 or 2012. The Company recognizes interest accrued and penalties related to unrecognized tax benefits in tax expense. During the years ended December 31, 2013 and 2012, the Company recognized no interest and penalties. | ||||||||
The Company files U.S. federal tax returns and tax returns in various states. The tax years 2010 through 2012 remain open to examination by the taxing jurisdictions to which the Company is subject | ||||||||
Earnings Per Share, Policy [Policy Text Block] | ' | |||||||
Earnings Per Share - Basic earnings per share is based on the weighted average number of common shares outstanding during the periods presented. Diluted earnings per share is based on the weighted average number of common shares outstanding, as well as dilutive potential common shares which, in the Company’s case, comprise shares issuable under convertible notes payable and stock options. The treasury stock method is used to calculate dilutive shares, which reduces the gross number of dilutive shares by the number of shares purchasable from the proceeds of the options and warrants assumed to be exercised. In a loss year, the calculation for basic and diluted earnings per share is considered to be the same, as the impact of potential common shares is anti-dilutive. | ||||||||
The following table sets forth the computation of basic and diluted earnings per share as of December 31, 2013 and 2012: | ||||||||
Year ended December 31, | ||||||||
2013 | 2012 | |||||||
Numerator for basic net income per share: | ||||||||
Income available to common stockholders | $ | 108,500 | $ | 271,197 | ||||
Denominator for basic net income per share: | ||||||||
Weighted average common shares outstanding | 25,961,883 | 25,961,883 | ||||||
Basic net income per share | $ | 0 | $ | 0.01 | ||||
Numerator for diluted net income per share: | ||||||||
Income available to common stockholders | $ | 108,500 | $ | 271,197 | ||||
Effect of dilutive securities - common stock options and convertible notes payable | 50,879 | 57,369 | ||||||
Diluted earnings per share - income available to common stockholders with assumed conversions | 159,379 | 328,566 | ||||||
Denominator for diluted net income per share: | ||||||||
Weighted average common shares outstanding | 25,961,883 | 25,961,883 | ||||||
Effect of dilutive securities - common stock options and convertible notes payable | 20,398,504 | 21,600,899 | ||||||
Shares used in computing diluted net income per share | 46,360,387 | 47,562,782 | ||||||
Diluted net income per share | $ | 0 | $ | 0.01 | ||||
Anti-dilutive shares excluded from net income per share calculation | 6,092,500 | 3,146,500 | ||||||
For the years ended December 31, 2013 and 2012, convertible debt and options to purchase 6,092,500 and 3,146,500 shares of common stock, respectively, that could potentially dilute basic earnings per share were excluded from the calculation of diluted net income per share because the exercise prices were greater than the average market price of the common shares or their inclusion would have been anti-dilutive. | ||||||||
Fair Value of Financial Instruments, Policy [Policy Text Block] | ' | |||||||
Fair Value of Financial Instruments - The Company has determined the fair value of debt and other financial instruments using a valuation hierarchy. The hierarchy, which prioritizes the inputs used in measuring fair value, consists of three levels. | ||||||||
Level 1 uses observable inputs such as quoted prices in active markets; | ||||||||
Level 2 uses inputs other than quoted prices in active markets that are either directly or indirectly observable; and | ||||||||
Level 3, which is defined as unobservable inputs in which little or no market data exists, requires the Company to develop its own assumptions. | ||||||||
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). | ||||||||
The carrying amounts of cash, accounts receivable and accounts payable and accrued expenses are reasonable estimates of their fair value due to their short maturity. Based on the borrowing rates currently available to the Company for loans similar to its term debt and notes payable, the fair value approximates its carrying amount. | ||||||||
Equity Method Investments, Policy [Policy Text Block] | ' | |||||||
Equity Investments - The Company accounts for investments in equity securities of other entities under the cost method of accounting if investments in voting equity interests of the investee are less than 20%. The equity method of accounting is used if the Company’s investment in voting stock is greater than or equal to 20% but less than a majority. In considering the accounting method for investments less than 20%, the Company also considers other factors such as its ability to exercise significant influence over operating and financial policies of the investee. If certain factors are present, the Company could account for investments for which it has less than a 20% ownership under the equity method of accounting. | ||||||||
Use of Estimates, Policy [Policy Text Block] | ' | |||||||
Use of Estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the 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 revenues and expenses during the reporting period. Actual results could differ from those estimates. | ||||||||
New Accounting Pronouncements, Policy [Policy Text Block] | ' | |||||||
Recent Accounting Pronouncements - Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists – The FASB issued Accounting Standards Update (ASU) No. 2013-11. Per this ASU an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. | ||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Accounting Policies [Abstract] | ' | |||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | |||||||
The following table sets forth the computation of basic and diluted earnings per share as of December 31, 2013 and 2012: | ||||||||
Year ended December 31, | ||||||||
2013 | 2012 | |||||||
Numerator for basic net income per share: | ||||||||
Income available to common stockholders | $ | 108,500 | $ | 271,197 | ||||
Denominator for basic net income per share: | ||||||||
Weighted average common shares outstanding | 25,961,883 | 25,961,883 | ||||||
Basic net income per share | $ | 0 | $ | 0.01 | ||||
Numerator for diluted net income per share: | ||||||||
Income available to common stockholders | $ | 108,500 | $ | 271,197 | ||||
Effect of dilutive securities - common stock options and convertible notes payable | 50,879 | 57,369 | ||||||
Diluted earnings per share - income available to common stockholders with assumed conversions | 159,379 | 328,566 | ||||||
Denominator for diluted net income per share: | ||||||||
Weighted average common shares outstanding | 25,961,883 | 25,961,883 | ||||||
Effect of dilutive securities - common stock options and convertible notes payable | 20,398,504 | 21,600,899 | ||||||
Shares used in computing diluted net income per share | 46,360,387 | 47,562,782 | ||||||
Diluted net income per share | $ | 0 | $ | 0.01 | ||||
Anti-dilutive shares excluded from net income per share calculation | 6,092,500 | 3,146,500 | ||||||
PROPERTY_AND_EQUIPMENT_Tables
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||||||||
Property, Plant and Equipment [Table Text Block] | ' | |||||||||||||
Property and equipment consists of: | ||||||||||||||
Depreciable | December 31, | |||||||||||||
Lives | 2013 | 2012 | ||||||||||||
Software | 3 to 5 years | $ | 10,881 | $ | 10,881 | |||||||||
Equipment | 3 to 10 years | 142,846 | 129,960 | |||||||||||
Furniture and fixtures | 5 to 7 years | 13,735 | 9,424 | |||||||||||
Leasehold improvements | 3 years | 1,224 | 1,224 | |||||||||||
168,686 | 151,489 | |||||||||||||
Accumulated depreciation | -122,566 | -113,427 | ||||||||||||
$ | 46,120 | $ | 38,062 | |||||||||||
NOTES_PAYABLE_CURRENT_Tables
NOTES PAYABLE - CURRENT (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Schedule of Related Party Transactions [Table Text Block] | ' | |||||||
Notes payable - related parties consist of: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Convertible demand note payable to employee, 11% (A) | $ | 59,000 | $ | 59,000 | ||||
Demand note payable to director, 18%, unsecured | 13,000 | 20,000 | ||||||
Convertible demand note payable to director, 12%, unsecured (B) | 40,000 | 40,000 | ||||||
Demand note payable to director, 10%, unsecured | 30,000 | 30,000 | ||||||
$ | 142,000 | $ | 149,000 | |||||
(A) Convertible demand note payable to employee, 11% - At December 31, 2013 and 2012, the Company was obligated to an employee for $59,000 with interest at 11%. The note is secured by a subordinate lien on all of the Company's assets. The principal and accrued interest are convertible at the option of the holder into shares of common stock at $.16 per share. | ||||||||
(B) Convertible demand note payable to director, 12%, - At December 31, 2013 and 2012, the Company was obligated to a director for $40,000 with interest at 12%. The note is unsecured and the principal is convertible at the option of the holder into shares of common stock at $.11 per share. | ||||||||
LONGTERM_OBLIGATIONS_Tables
LONG-TERM OBLIGATIONS (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | ' | |||||||
Term notes payable - banks and other consist of: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Note payable, 10%, secured, due January 1, 2015 | $ | 265,000 | $ | 265,000 | ||||
Convertible term note payable,12%, secured, due January 1, 2016 | 175,000 | 175,000 | ||||||
Convertible notes payable, 6%, due January 1, 2016 | 150,000 | 150,000 | ||||||
Term note payable - PBGC, 6%, secured | 273,000 | 285,000 | ||||||
Obligation to PBGC based on free cash flow | 569,999 | 569,999 | ||||||
Convertible term note payable, 7%, secured, due October 3, 2016 | 100,000 | 100,000 | ||||||
Term notes payable - banks, secured | 11,593 | 22,461 | ||||||
1,544,592 | 1,567,460 | |||||||
Less current maturities | 21,186 | 22,867 | ||||||
$ | 1,523,406 | $ | 1,544,593 | |||||
Contractual Obligation, Fiscal Year Maturity Schedule [Table Text Block] | ' | |||||||
Minimum future annual payments of long-term obligations as of December 31, 2013 are as follows: | ||||||||
2014 | $ | 21,186 | ||||||
2015 | 354,407 | |||||||
2016 | 938,324 | |||||||
2017 | 581,999 | |||||||
2018 | 150,000 | |||||||
Total long-term obligations | $ | 2,045,916 | ||||||
STOCK_OPTION_PLANS_Tables
STOCK OPTION PLANS (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | ' | ||||||||||||
The following assumptions were used for the years ended December 31, 2013 and 2012. | |||||||||||||
2013 | 2012 | ||||||||||||
Risk-free interest rate | .34% - 2.15% | .83% - 1.10% | |||||||||||
Expected dividend yield | 0% | 0% | |||||||||||
Expected stock price volatility | 75% | 75% | |||||||||||
Expected life of options | 3.25 - 5.75 years | 5.75 years | |||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | ||||||||||||
The following is a summary of stock option activity, including qualified and non-qualified options for the years ended December 31, 2013 and 2012: | |||||||||||||
Number of | Weighted | Remaining | Aggregate | ||||||||||
Options | Average | Contractual | Intrinsic | ||||||||||
Outstanding | Exercise | Term | Value | ||||||||||
Price | |||||||||||||
Outstanding at December 31, 2011 | 6,889,500 | $ | 0.22 | ||||||||||
Granted | 300,000 | $ | 0.1 | ||||||||||
Expired | -168,500 | $ | 0.2 | ||||||||||
Forfeited | -136,500 | $ | 0.13 | ||||||||||
Outstanding at December 31, 2012 | 6,884,500 | $ | 0.2 | ||||||||||
Granted | 3,587,500 | $ | 0.15 | ||||||||||
Expired | -1,124,833 | $ | 0.09 | ||||||||||
Forfeited | -126,667 | $ | 0.1 | ||||||||||
Outstanding at December 31, 2013 | 9,220,500 | $ | 0.18 | 4.6 years | $ | 38,000 | |||||||
Exercisable at December 31, 2013 | 6,108,000 | $ | 0.2 | 4.8 years | $ | 38,000 | |||||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | ' | ||||||||
The components of income tax expense (benefit) follows: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Deferred: | |||||||||
Federal | $ | -61,000 | 1,259,000 | ||||||
State | 4,000 | -172,000 | |||||||
-57,000 | 1,087,000 | ||||||||
Change in valuation allowance | 57,000 | -1,087,000 | |||||||
$ | 0 | $ | 0 | ||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | ' | ||||||||
The following is a summary of the Company's temporary differences and carryforwards which give rise to deferred tax assets and liabilities. | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Deferred tax assets: | |||||||||
Net operating loss carryforwards | $ | 2,447,000 | $ | 2,427,000 | |||||
Defined benefit pension liability | 336,000 | 340,000 | |||||||
Reserves and accrued expenses payable | 317,000 | 275,000 | |||||||
Property and equipment | 0 | 1,000 | |||||||
Gross deferred tax asset | 3,100,000 | 3,043,000 | |||||||
Deferred tax asset valuation allowance | -3,100,000 | -3,043,000 | |||||||
Net deferred tax asset | $ | 0 | $ | 0 | |||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | ' | ||||||||
The differences between the U.S. statutory federal income tax rate and the effective income tax rate in the accompanying consolidated statements of income are as follows. | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Statutory U.S. federal tax rate | 34 | % | 34 | % | |||||
State income taxes | 4.3 | -63.6 | |||||||
Change in valuation allowance | 51.2 | -400.8 | |||||||
Expired stock-based compensation and warrants | 13.5 | 4.4 | |||||||
Other permanent non-deductible items | 6.6 | 1.3 | |||||||
Deferred tax asset adjustment | -109.6 | 0 | |||||||
Expired net operating loss carryforward | 0 | 474.8 | |||||||
Defined benefit pension termination | 0 | -50.1 | |||||||
Effective income tax rate | 0 | % | 0 | % | |||||
MANAGEMENT_PLANS_Details_Textu
MANAGEMENT PLANS (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Net Income (Loss) Attributable to Parent | $108,500 | $271,197 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Numerator for basic net income per share: | ' | ' |
Income available to common stockholders (in dollars) | $108,500 | $271,197 |
Denominator for basic net income per share: | ' | ' |
Weighted average common shares outstanding (in shares) | 25,961,883 | 25,961,883 |
Basic net income per share (in dollars per share) | $0 | $0.01 |
Numerator for diluted net income per share: | ' | ' |
Income available to common stockholders (in dollars) | 108,500 | 271,197 |
Effect of dilutive securities - common stock options and convertible notes payable (in dollars) | 50,879 | 57,369 |
Diluted earnings per share - income available to common stockholders with assumed conversions (in dollars) | $159,379 | $328,566 |
Denominator for diluted net income per share: | ' | ' |
Weighted average common shares outstanding (in shares) | 25,961,883 | 25,961,883 |
Effect of dilutive securities - common stock options and convertible notes payable (in shares) | 20,398,504 | 21,600,899 |
Shares used in computing diluted net income per share (in shares) | 46,360,387 | 47,562,782 |
Diluted net income per share (in dollars per share) | $0 | $0.01 |
Anti-dilutive shares excluded from net income per share calculation (in shares) | 6,092,500 | 3,146,500 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Accounting policies [Line Items] | ' | ' |
Allowance for Doubtful Accounts Receivable, Current | $70,000 | $70,000 |
Accounts Receivable, Factoring Retained Amount, Percentage | 20.00% | ' |
Accounts Receivable, Factoring Fee for First Thirty Days, Percentage | 1.00% | ' |
Accounts Receivable, Factoring Additional Fee on Average Daily Balance of Net Outstanding Funds Prime Rate, Percentage | 3.25% | 3.25% |
Accounts Receivable, Factoring Agreement, Non Recourse Receivables | 2,000,000 | ' |
Accounts Receivable, Factoring Agreement, Non Recourse Receivables Sublimit for Single Customer Receivable | 1,500,000 | ' |
Proceeds from Sale of Finance Receivables | 8,132,000 | 7,797,000 |
Trade Receivables Held-for-sale, Amount | 799,381 | 781,818 |
Additional Accounts Receivable with Financial Institution | 220,000 | 183,000 |
Receivable from Purchaser, Net of Fees and Advances | 187,258 | 146,125 |
Interest Expense, Financing Receivable Fee | $176,000 | $174,300 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 6,092,500 | 3,146,500 |
Variable Interest Entity, Primary Beneficiary [Member] | ' | ' |
Accounting policies [Line Items] | ' | ' |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 20.00% | ' |
Equity Method Investment, Ownership Percentage | 20.00% | ' |
Maximum [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ' | ' |
Accounting policies [Line Items] | ' | ' |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 20.00% | ' |
Minimum [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ' | ' |
Accounting policies [Line Items] | ' | ' |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 20.00% | ' |
Customer A [Member] | ' | ' |
Accounting policies [Line Items] | ' | ' |
Sales Revenue Net, Percentage | 68.90% | 65.10% |
Accounts Receivable, Percentage | 56.40% | 59.50% |
Customer B [Member] | ' | ' |
Accounting policies [Line Items] | ' | ' |
Sales Revenue Net, Percentage | 25.00% | 22.10% |
Accounts Receivable, Percentage | 37.00% | 19.80% |
PROPERTY_AND_EQUIPMENT_Details
PROPERTY AND EQUIPMENT (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | $168,686 | $151,489 |
Accumulated depreciation | -122,566 | -113,427 |
Property and equipment, net | 46,120 | 38,062 |
Software [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | 10,881 | 10,881 |
Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | 142,846 | 129,960 |
Furniture and Fixtures [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | 13,735 | 9,424 |
Leasehold Improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | $1,224 | $1,224 |
Depreciable Lives (in years) | '3 | ' |
Minimum [Member] | Software [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Depreciable Lives (in years) | '3 | ' |
Minimum [Member] | Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Depreciable Lives (in years) | '3 | ' |
Minimum [Member] | Furniture and Fixtures [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Depreciable Lives (in years) | '5 | ' |
Maximum [Member] | Software [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Depreciable Lives (in years) | '5 | ' |
Maximum [Member] | Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Depreciable Lives (in years) | '10 | ' |
Maximum [Member] | Furniture and Fixtures [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Depreciable Lives (in years) | '7 | ' |
PROPERTY_AND_EQUIPMENT_Details1
PROPERTY AND EQUIPMENT (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Property, Plant and Equipment [Line Items] | ' | ' |
Depreciation | $21,074 | $28,339 |
INVESTMENT_IN_EQUITY_SECURITIE1
INVESTMENT IN EQUITY SECURITIES (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Investments, Debt And Equity Securities [Line Items] | ' | ' | ' |
Preferred Stock, Par or Stated Value Per Share | $0.01 | ' | ' |
Cash | $16,947 | $56,158 | $36,894 |
Assets | 926,942 | 705,987 | ' |
Liabilities | 3,592,318 | 3,574,562 | ' |
Net Loss | -108,500 | -271,197 | ' |
IPO [Member] | ' | ' | ' |
Investments, Debt And Equity Securities [Line Items] | ' | ' | ' |
Proceeds from Issuance of Common Stock | 10,000,000 | ' | ' |
Minimum Price of Converted Common Stock Par Value | $3 | ' | ' |
Sudo Me Corporation [Member] | ' | ' | ' |
Investments, Debt And Equity Securities [Line Items] | ' | ' | ' |
Percentage of Outstanding Shares Owned | 8.80% | ' | ' |
Accounts and Other Receivables, Net, Current | 114,167 | ' | ' |
Cash | 155,833 | ' | ' |
Noncash Investing Activity | 114,167 | ' | ' |
Investment Write Down | 23,000 | ' | ' |
Equity Method Investments | 247,000 | ' | ' |
Assets | 17,113 | ' | ' |
Liabilities | 146,035 | ' | ' |
Net Loss | 822,796 | ' | ' |
Series A Stock [Member] | ' | ' | ' |
Investments, Debt And Equity Securities [Line Items] | ' | ' | ' |
Series A Dividends Accrue Rate Per Share | $0.10 | ' | ' |
Series A Stock [Member] | Sudo Me Corporation [Member] | ' | ' | ' |
Investments, Debt And Equity Securities [Line Items] | ' | ' | ' |
Purchase of Series A Convertible Preferred Stock (in shares) | 270,000 | ' | ' |
Preferred Stock, Par or Stated Value Per Share | $0.00 | ' | ' |
Aggregate Purchase Price of Series A Convertible Preferred Stock | $270,000 | ' | ' |
NOTES_PAYABLE_CURRENT_Details
NOTES PAYABLE - CURRENT (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
Short-term Debt [Line Items] | ' | ' | ||
Notes Payable, Related Parties, Current | $142,000 | $149,000 | ||
Convertible Demand Note Payable To Employee Eleven Percentage [Member] | ' | ' | ||
Short-term Debt [Line Items] | ' | ' | ||
Notes Payable, Related Parties, Current | 59,000 | [1] | 59,000 | [1] |
Demand Note Payable To Director Eighteen Percentage Unsecured1 [Member] | ' | ' | ||
Short-term Debt [Line Items] | ' | ' | ||
Notes Payable, Related Parties, Current | 13,000 | 20,000 | ||
Convertible Demand Note Payable To Director Twelve Percentage Unsecured [Member] | ' | ' | ||
Short-term Debt [Line Items] | ' | ' | ||
Notes Payable, Related Parties, Current | 40,000 | [2] | 40,000 | [2] |
Demand Note Payable To Director Ten Percentage Unsecured2 [Member] | ' | ' | ||
Short-term Debt [Line Items] | ' | ' | ||
Notes Payable, Related Parties, Current | $30,000 | $30,000 | ||
[1] | Convertible demand note payable to employee, 11% - At December 31, 2013 and 2012, the Company was obligated to an employee for $59,000 with interest at 11%. The note is secured by a subordinate lien on all of the Company's assets. The principal and accrued interest are convertible at the option of the holder into shares of common stock at $.16 per share. | |||
[2] | Convertible demand note payable to director, 12%, - At December 31, 2013 and 2012, the Company was obligated to a director for $40,000 with interest at 12%. The note is unsecured and the principal is convertible at the option of the holder into shares of common stock at $.11 per share. |
NOTES_PAYABLE_CURRENT_Details_
NOTES PAYABLE - CURRENT (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Short-term Debt [Line Items] | ' | ' |
Proceeds from Unsecured Notes Payable | $30,000 | $30,000 |
Debt Instrument, Interest Rate During Period | 10.00% | 10.00% |
Eleven Percentage Interest On Convertible Notes Payable [Member] | ' | ' |
Short-term Debt [Line Items] | ' | ' |
Convertible Notes Payable | 59,000 | 59,000 |
Debt Instrument, Interest Rate, Effective Percentage | 11.00% | 11.00% |
Convertible Common Stock Price | 0.16 | 0.16 |
Twelve Percentage Interest On Convertible Notes Payable [Member] | ' | ' |
Short-term Debt [Line Items] | ' | ' |
Convertible Notes Payable | $40,000 | $40,000 |
Debt Instrument, Interest Rate, Effective Percentage | 12.00% | 12.00% |
Convertible Common Stock Price | 0.11 | 0.11 |
LONGTERM_OBLIGATIONS_Details
LONG-TERM OBLIGATIONS (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Debt Instrument [Line Items] | ' | ' |
Long-term Debt | $1,544,592 | $1,567,460 |
Less current maturities | 21,186 | 22,867 |
Long-term Debt, Excluding Current Maturities | 1,523,406 | 1,544,593 |
Note Payable Secured Due January 1, 2015 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term Debt | 265,000 | 265,000 |
Convertible Term Note Payable Secured Due January 1, 2016 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term Debt | 175,000 | 175,000 |
Convertible Notes Payable Due January 1, 2016 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term Debt | 150,000 | 150,000 |
Term Note Payable PBGC Secured [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term Debt | 273,000 | 285,000 |
Obligation to PBGC Based on Free Cash Flow [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term Debt | 569,999 | 569,999 |
Convertible Term Note Payable Secured Due October 3, 2016 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term Debt | 100,000 | 100,000 |
Term Notes Payable Banks Secured [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term Debt | $11,593 | $22,461 |
LONGTERM_OBLIGATIONS_Details_1
LONG-TERM OBLIGATIONS (Details 1) (USD $) | Dec. 31, 2013 |
Debt Instrument [Line Items] | ' |
2014 | $21,186 |
2015 | 354,407 |
2016 | 938,324 |
2017 | 581,999 |
2018 | 150,000 |
Total long-term obligations | $2,045,916 |
LONGTERM_OBLIGATIONS_Details_T
LONG-TERM OBLIGATIONS (Details Textual) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Oct. 17, 2011 | Oct. 17, 2011 | Oct. 17, 2011 | Oct. 04, 2011 | Dec. 31, 2013 | Oct. 17, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
Vehicle Financing [Member] | Vehicle Financing [Member] | Office and Technology Equipment [Member] | Office and Technology Equipment [Member] | Monthly Installments through Dec 2014 [Member] | Monthly Installments through Aug 2015 [Member] | Notes Payable, Other Payables [Member] | Notes Payable, Other Payables [Member] | Notes Payable, Other Payables [Member] | Convertible Term Note Payable [Member] | Convertible Term Note Payable [Member] | Obligation to PBGC Based on Free Cash Flow [Member] | Related Party Convertible Notes Payable [Member] | Related Party Convertible Notes Payable [Member] | Secured Notes Payable [Member] | Convertible Notes Payable [Member] | Convertible Notes Payable [Member] | |||
Vehicle Financing [Member] | Office and Technology Equipment [Member] | Debt Due in Year 2015 [Member] | Debt Due in Year 2018 [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Face Amount | ' | ' | ' | ' | ' | ' | ' | ' | $300,000 | ' | ' | ' | $175,000 | ' | ' | ' | $265,000 | $150,000 | $150,000 |
Debt Instrument, Interest Rate, Stated Percentage | ' | ' | 5.50% | ' | 14.90% | ' | ' | ' | 6.00% | ' | ' | 7.00% | 12.00% | ' | 6.00% | 6.00% | 10.00% | 6.00% | 6.00% |
Debt Instrument, Maturity Date | ' | ' | ' | ' | ' | ' | ' | ' | 30-Sep-18 | ' | ' | 3-Oct-16 | 1-Jan-16 | ' | 1-Jan-16 | ' | 1-Jan-15 | 1-Jan-16 | ' |
Debt Instrument, Convertible, Conversion Price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.10 | $0.25 | ' | $0.05 | ' | ' | $0.50 | ' |
Debt Instrument Periodic Payment Terms Balloon Payment Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | 75,000 | 144,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term Debt | 1,544,592 | 1,567,460 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 569,999 | ' | ' | ' | ' | ' |
Stock Repurchased During Period, Shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 | ' | ' | ' | ' | ' | ' | ' |
Stock Repurchased During Period, Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 130,000 | ' | ' | ' | ' | ' | ' | ' |
Working Capital Surplus | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30,000 | ' | ' | ' | ' | ' | ' | ' |
Secured Debt | ' | ' | 5,993 | 11,667 | 5,600 | 10,794 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Frequency of Periodic Payment | ' | ' | 'monthly | ' | 'monthly | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Periodic Payment | ' | ' | ' | ' | ' | ' | 515 | 318 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Convertible Debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' |
Notes Payable, Related Parties, Noncurrent | 501,324 | 501,324 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 501,324 | 501,324 | ' | ' | ' |
Accrued Interest on Related Party Debt Non Convertible | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $25,000 | ' | ' | ' | ' |
STOCKHOLDERS_DEFICIENCY_Detail
STOCKHOLDERS' DEFICIENCY (Details Textual) (USD $) | Dec. 31, 2013 |
Class of Stock [Line Items] | ' |
Preferred Stock, Shares Authorized | 1,000,000 |
Preferred Stock, Par or Stated Value Per Share | $0.01 |
STOCK_OPTION_PLANS_Details
STOCK OPTION PLANS (Details) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Expected dividend yield | 0.00% | 0.00% |
Expected stock price volatility | 75.00% | 75.00% |
Expected life of options | ' | '5 years 9 months |
Minimum [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Risk-free interest rate, Minimum | 0.34% | 0.83% |
Expected life of options | '3 years 3 months | ' |
Maximum [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Risk-free interest rate, Maximum | 2.15% | 1.10% |
Expected life of options | '5 years 9 months | ' |
STOCK_OPTION_PLANS_Details_1
STOCK OPTION PLANS (Details 1) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Number of Option Outstanding, Begining Balance | 6,884,500 | 6,889,500 |
Number of Options, Options Granted (in shares) | 3,587,500 | 300,000 |
Number of Options, Options Expired (in shares) | -1,124,833 | -168,500 |
Number of Options, Options Forfeited (in shares) | -126,667 | -136,500 |
Number of option Outstanding, Ending Balance | 9,220,500 | 6,884,500 |
Number of Option Outstanding, Excercisable at December 31, 2013 | 6,108,000 | ' |
Weighted Average Exercise Price, Outstanding, Begining Balance | $0.20 | $0.22 |
Weighted Average Exercise Price, Options Granted (in dollars per share) | $0.15 | $0.10 |
Weighted Average Exercise Price, Options Expired (in dollars per share) | $0.09 | $0.20 |
Weighted Average Exercise Price, Options Forfeited (in dollars per share) | $0.10 | $0.13 |
Weighted Average Exercise Price, Outstanding, Ending Balance | $0.18 | $0.20 |
Weighted Average Exercise Price, Excercisable at December 31, 2013 | $0.20 | ' |
Weighted-Average Remaining Contractual Term, Outstanding at December 31, 2013 | '4 years 7 months 6 days | ' |
Weighted-Average Remaining Contractual Term, Exercisable at December 31, 2013 | '4 years 9 months 18 days | ' |
Aggregate Intrinsic Value, Outstanding (in dollars) at December 31, 2013 | $38,000 | ' |
Aggregate Intrinsic Value, Exercisable (in dollars) at December 31, 2013 | $38,000 | ' |
STOCK_OPTION_PLANS_Details_Tex
STOCK OPTION PLANS (Details Textual) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Feb. 03, 2009 | Dec. 31, 2013 | Dec. 31, 2013 | |
Minimum [Member] | Maximum [Member] | Director [Member] | Stock Option Plan Year 1993 to 2005 [Member] | Stock Option Plan Year 1993 to 2005 [Member] | Stock Option Plan Year 2009 [Member] | Stock Option Plan Year 2009 [Member] | Sales Performance [Member] | Stock Option Agreements 2013 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | ' | ' | ' | ' | ' | 4,088,833 | 4,596,333 | ' | 4,000,000 | ' | 3,175,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | $12,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $0.08 | $0.12 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Options to Purchase Common Shares Remain Unissued Number | ' | ' | ' | ' | ' | 1,222,833 | ' | 820,500 | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $74,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period | 7,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 3,587,500 | 300,000 | ' | ' | 500,000 | ' | ' | ' | ' | 2,675,000 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Accelerated Vesting, Number | ' | ' | ' | ' | 100,000 | ' | ' | ' | ' | 425,000 | ' |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $0.15 | $0.10 | ' | ' | ' | ' | ' | ' | ' | ' | $0.15 |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | ' | ' | ' | ' | '4 years | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | ' | '5 years 9 months | '3 years 3 months | '5 years 9 months | ' | ' | ' | ' | ' | ' | ' |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Deferred: | ' | ' |
Federal | ($61,000) | $1,259,000 |
State | 4,000 | -172,000 |
Deferred Income Tax Expense (Benefit) | -57,000 | 1,087,000 |
Change in valuation allowance | 57,000 | -1,087,000 |
Income Tax Expense (Benefit) | $0 | $0 |
INCOME_TAXES_Details_1
INCOME TAXES (Details 1) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Deferred tax assets: | ' | ' |
Net operating loss carryforwards | $2,447,000 | $2,427,000 |
Defined benefit pension liability | 336,000 | 340,000 |
Reserves and accrued expenses payable | 317,000 | 275,000 |
Property and equipment | 0 | 1,000 |
Gross deferred tax asset | 3,100,000 | 3,043,000 |
Deferred tax asset valuation allowance | -3,100,000 | -3,043,000 |
Net deferred tax asset | $0 | $0 |
INCOME_TAXES_Details_2
INCOME TAXES (Details 2) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax [Line Items] | ' | ' |
Statutory U.S. federal tax rate | 34.00% | 34.00% |
State income taxes | 4.30% | -63.60% |
Change in valuation allowance | 51.20% | -400.80% |
Expired stock-based compensation and warrants | 13.50% | 4.40% |
Other permanent non-deductible items | 6.60% | 1.30% |
Deferred tax asset adjustment | -109.60% | 0.00% |
Expired net operating loss carryforward | 0.00% | 474.80% |
Defined benefit pension termination | 0.00% | -50.10% |
Effective income tax rate | 0.00% | 0.00% |
INCOME_TAXES_Details_Textual
INCOME TAXES (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Operating Loss Carryforwards [Line Items] | ' | ' |
Operating Loss Carryforwards | $6,500,000 | ' |
State Operating Loss Carryforwards, Expiration Dates | 'expire from 2018 through 2033 | ' |
Decrease in Federal Net Operating Loss Carryforward | 6,600,000 | ' |
Deferred Tax Assets, Valuation Allowance | 3,100,000 | 3,043,000 |
State and Local Jurisdiction [Member] | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' |
Operating Loss Carryforwards | $3,900,000 | ' |
EMPLOYEE_RETIREMENT_AND_PENSIO1
EMPLOYEE RETIREMENT AND PENSION PLANS (Details Textual) (USD $) | 12 Months Ended | 12 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Oct. 17, 2011 | Oct. 17, 2011 | |
O and W Plan [Member] | O and W Plan [Member] | Pension Plan Age 50 years [Member] | Obligation to PBGC Based on Free Cash Flow [Member] | Notes Payable, Other Payables [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Eligibility to Participate in Retirement Plan Earnings | ' | $5,000 | ' | ' | ' | ' | ' |
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Amount | ' | 11,500 | ' | ' | ' | ' | ' |
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees Gross Pay | ' | 3.00% | ' | ' | ' | ' | ' |
Defined Contribution Plan, Employer Discretionary Contribution Amount | ' | 62,775 | ' | ' | ' | ' | ' |
Defined Contribution Plan, Accrued Liability | 200,316 | 220,783 | ' | ' | ' | ' | ' |
Defined Contribution Plan, Additional Catch up Contribution Per Employee Amount | 17,500 | ' | ' | ' | 5,500 | ' | ' |
Equity Method Investment, Ownership Percentage | ' | ' | ' | 100.00% | ' | ' | ' |
Stock Repurchased During Period, Shares | ' | ' | 500,000 | ' | ' | ' | ' |
Stock Repurchased During Period, Value | ' | ' | 130,000 | ' | ' | ' | ' |
Debt Instrument, Face Amount | ' | ' | ' | ' | ' | ' | 300,000 |
Debt Instrument, Interest Rate, Stated Percentage | ' | ' | ' | ' | ' | ' | 6.00% |
Accrued Liabilities on Unfunded Contributions | ' | 480,000 | ' | ' | ' | ' | ' |
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements | ' | 480,000 | ' | ' | ' | ' | ' |
Long-term Debt | $1,544,592 | $1,567,460 | ' | ' | ' | $569,999 | ' |
COMMITMENTS_Details_Textual
COMMITMENTS (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Operating Leased Assets [Line Items] | ' | ' |
Operating Lease Carryforwards, Expiration Date | 'The Company leases its headquarters facilities under an operating lease agreement that expires in April 2015. | ' |
Operating Leases, Rent Expense, Net | $30,400 | $31,500 |
Operating Leases, Future Minimum Payments, Due Thereafter | $39,700 | ' |
RELATED_PARTY_ACCOUNTS_RECEIVA1
RELATED PARTY ACCOUNTS RECEIVABLE AND ACCRUED INTEREST PAYABLE (Details Textual) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Related Party Transaction [Line Items] | ' | ' |
Accrued Interest Payable, Related Parties, Current | $358,698 | $317,287 |
Accounts Receivable, Related Parties, Current | $269 | $71,302 |
SUPPLEMENTAL_CASH_FLOW_INFORMA1
SUPPLEMENTAL CASH FLOW INFORMATION (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2012 | Dec. 31, 2013 | |
Sudo Me Corporation [Member] | ||
Noncash or Part Noncash Acquisitions [Line Items] | ' | ' |
Noncash or Part Noncash Acquisition, Investments Acquired | ' | $114,167 |
Noncash or Part Noncash Acquisition, Intangible Assets Acquired | $9,182 | ' |
SUBSEQUENT_EVENTS_Details_Text
SUBSEQUENT EVENTS (Details Textual) (USD $) | 12 Months Ended | 3 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Mar. 28, 2014 | Mar. 28, 2014 | Mar. 28, 2014 | |
Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | |||
Employee Stock Option One[Member] | Employee Stock Option Two [Member] | ||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 3,587,500 | 300,000 | 1,720,000 | 920,000 | 800,000 |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $0.15 | $0.10 | ' | $0.12 | $0.13 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | ' | ' | 506,667 | 613,333 | 600,000 |