CynergisTek (CTEK) 10-Q 14 Nov 14 2014 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Sep. 30, 2014	Nov. 13, 2014
Document and Entity Information	'	'
Entity Registrant Name	'AUXILIO INC	'
Document Type	'10-Q	'
Document Period End Date	30-Sep-14	'
Amendment Flag	'false	'
Entity Central Index Key	'0001011432	'
Current Fiscal Year End Date	'--12-31	'
Entity Common Stock, Shares Outstanding	'	23,616,119
Entity Filer Category	'Smaller Reporting Company	'
Entity Current Reporting Status	'Yes	'
Entity Voluntary Filers	'No	'
Entity Well-known Seasoned Issuer	'No	'
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q3	'

CONDENSED_CONSOLIDATED_BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Sep. 30, 2014	Dec. 31, 2013
Current assets:	'	'
Cash and cash equivalents	$4,274,441	$4,668,624
Accounts receivable, net	5,575,772	3,856,791
Supplies	1,020,202	967,354
Prepaid and other current assets	173,055	332,759
Total current assets	11,043,470	9,825,528
Property and equipment, net	206,042	160,709
Deposits	34,413	34,413
Loan acquisition costs	'	51,162
Intangible assets, net	1,317,500	'
Goodwill	2,473,656	1,517,017
Total assets	15,075,081	11,588,829
Current liabilities:	'	'
Accounts payable and accrued expenses	6,384,834	5,057,339
Accrued compensation and benefits	1,420,187	1,556,513
Line of credit	200,000	400,000
Deferred revenue	904,534	868,186
Convertible notes payable, net of discount of $82,250 at December 31, 2013	'	1,617,750
Current portion of capital lease obligations	61,845	71,933
Total current liabilities	8,971,400	9,571,721
Long-term liabilities:	'	'
Notes payable to related parties, net of discount of $34,956 at September 30, 2014	328,767	'
Capital lease obligations less current portion	43,979	46,558
Total long-term liabilities	372,746	46,558
Total liabilities	9,344,146	9,618,279
Stockholders' (deficit) equity:	'	'
Common stock, par value at $0.001, 33,333,333 shares authorized, 23,597,548 and 20,643,966 shares issued and outstanding at September 30, 2014 and December 31, 2013, respectively	23,599	20,645
Additional paid-in capital	26,591,409	23,491,490
Accumulated deficit	-20,884,073	-21,541,585
Total stockholders' (deficit) equity	5,730,935	1,970,550
Total liabilities and stockholders' equity	$15,075,081	$11,588,829

CONDENSED_CONSOLIDATED_BALANCE1

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Sep. 30, 2014	Dec. 31, 2013
Statement of Financial Position	'	'
Common Stock, par or stated value	$0.00	$0.00
Common Stock, shares authorized	33,333,333	33,333,333
Common Stock, shares issued	23,597,548	20,643,966
Common Stock, shares outstanding	23,597,548	20,643,966
Convertible notes payable, discount	$34,956	$82,250

CONDENSED_CONSOLIDATED_STATEME

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Income Statement	'	'	'	'
Revenues	$11,257,870	$10,806,614	$31,879,715	$30,699,794
Cost of revenues	8,718,230	8,577,029	25,881,373	25,250,930
Gross profit	2,539,640	2,229,585	5,998,342	5,448,864
Operating expenses:	'	'	'	'
Sales and marketing	521,585	469,632	1,612,298	1,655,988
General and administrative expenses	1,194,959	903,600	3,441,587	2,830,329
Total operating expenses	1,716,544	1,373,232	5,053,885	4,486,317
Income from operations	823,096	856,353	944,457	962,547
Other income (expense):	'	'	'	'
Interest expense	-42,453	-102,987	-246,345	-336,490
Other income	0	80,000	0	80,000
Total other income (expense)	-42,453	-22,987	-246,345	-256,490
Income before provision for income taxes	780,643	833,366	698,112	706,057
Income tax expense	-39,000	-21,900	-40,600	-27,400
Net income	$741,643	$811,466	$657,512	$678,657
Net income per share:	'	'	'	'
Basic	$0.03	$0.04	$0.03	$0.03
Diluted	$0.03	$0.04	$0.03	$0.03
Number of weighted average shares:	'	'	'	'
Basic	23,067,462	20,197,222	21,539,066	20,163,444
Diluted	24,736,564	21,073,171	23,199,078	21,039,393

CONDENSED_CONSOLIDATED_STATEME1

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (USD $)	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Total
Equity Balance, beginning of period, Value at Dec. 31, 2013	$20,645	$23,491,490	($21,541,585)	$1,970,550
Equity Balance, beginning of period, Shares at Dec. 31, 2013	20,643,966	'	'	'
Stock compensation expense for options and warrants granted to employees and directors	'	313,864	'	313,864
Stock compensation expense for restricted stock issued to key employee	'	15,233	'	15,233
Stock options and warrants exercised, Value	323	61,452	'	61,775
Stock options and warrants exercised, Shares	323,176	'	'	'
Conversion of convertible note payable, Value	1,700	1,698,300	'	1,700,000
Conversion of convertible note payable, Shares	1,700,000	'	'	'
Acquisition of Delphiis, Inc., Value	931	1,011,070	'	1,012,001
Acquisition of Delphiis, Inc., Shares	930,406	'	'	'
Net income	'	'	657,512	657,512
Equity Balance, end of period, Value at Sep. 30, 2014	$23,599	$26,591,409	($20,884,073)	$5,730,935
Equity Balance, end of period, Shares at Sep. 30, 2014	23,597,548	'	'	'

CONDENSED_CONSOLIDATED_STATEME2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Cash flows from operating activities:	'	'
Net income	$657,512	$678,657
Adjustments to reconcile net income to net cash provided by operating activities:	'	'
Depreciation	75,650	98,626
Amortization of intangible assets	52,500	'
Stock compensation expense for warrants and options issued to employees and directors	313,864	409,085
Stock compensation expense for restricted stock issued to key employee	15,233	'
Fair value of restricted stock granted for marketing services	'	190,484
Interest expense related to accretion of debt discount costs	87,017	105,750
Interest expense related to amortization of loan acquisition costs	51,162	85,947
Changes in operating assets and liabilities:	'	'
Accounts receivable	-1,346,948	291,624
Supplies	-52,848	-53,729
Prepaid and other current assets	159,704	-264,712
Deposits	'	1,875
Accounts payable and accrued expenses	1,233,479	-88,160
Accrued compensation and benefits	-155,635	-314,069
Deferred revenue	-117,741	-17,805
Net cash provided by operating activities	972,949	1,123,573
Cash flows from investing activities:	'	'
Purchases of property and equipment	-74,674	-10,278
Purchase of Delphiis, Inc. net of cash acquired	-995,257	'
Net cash used for investing activities	-1,069,931	-10,278
Cash flows from financing activities:	'	'
Net repayments on line of credit agreement	-200,000	-128,486
Payments on notes payable to related parties	-100,000	'
Net proceeds from issuance of common stock through employee stock options	61,775	1,175
Payments on capital leases	-58,976	-75,938
Net cash used for financing activities	-297,201	-203,249
Net (decrease) increase in cash and cash equivalents	-394,183	910,046
Cash and cash equivalents, beginning of period	4,668,624	2,190,972
Cash and cash equivalents, end of period	$4,274,441	$3,101,018

CONDENSED_CONSOLIDATED_STATEME3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED) (USD $)	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Supplemental disclosure of cash flow information:	'	'
Interest paid	$104,178	$144,792
Income taxes paid	81,454	5,655
Property and equipment acquired through capital leases	46,309	34,109
Conversion of convertible notes payable	1,700,000	'
Common stock issued for acquisition of Delphiis, Inc.	$1,012,000	'

1_Basis_of_Presentation

1. Basis of Presentation	9 Months Ended
	Sep. 30, 2014
Notes	'
1. Basis of Presentation	'
	1.           BASIS OF PRESENTATION
	The accompanying unaudited condensed consolidated financial statements of Auxilio, Inc. and its subsidiaries (the “Company”, “we”, “us” or “Auxilio”) have been prepared in accordance with generally accepted accounting principles of the United States of America (“GAAP”) for interim financial statements pursuant to the rules and regulations of the Securities and Exchange Commission.  Accordingly, these financial statements do not include all of the information and notes required by GAAP for complete financial statements.  These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2013, as filed with the Securities and Exchange Commission (“SEC”) on March 31, 2014.
	The unaudited condensed consolidated financial statements included herein reflect all adjustments (which include only normal, recurring adjustments) that are, in the opinion of management, necessary to state fairly our financial position and results of operations as of and for the periods presented.  The results for such periods are not necessarily indicative of the results to be expected for the full year.
	The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the 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.  As a result, actual results could differ from those estimates.
	The accompanying financial statements include the accounts of Auxilio and its wholly owned subsidiaries.  All intercompany balances and transactions have been eliminated.
	We have performed an evaluation of subsequent events through the date of filing these financial statements with the SEC.

2_Recently_Issued_Accounting_P

2. Recently Issued Accounting Pronouncements	9 Months Ended
	Sep. 30, 2014
Notes	'
2. Recently Issued Accounting Pronouncements	'
	2.           RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
	On May 28, 2014, the FASB issued ASU 2014-09 regarding ASC Topic 606, Revenue from Contracts with Customers. The standard provides principles for recognizing revenue for the transfer of promised goods or services to customers with the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance will be effective for our fiscal year 2017, subject to the issuance of guidance from the SEC. Early adoption is not permitted. We are evaluating the accounting, transition and disclosure requirements of the standard and cannot currently estimate the financial statement impact it will have upon adoption.

3_Options_and_Warrants

3. Options and Warrants	9 Months Ended
	Sep. 30, 2014
Notes	'
3. Options and Warrants	'
	3.           OPTIONS AND WARRANTS
	Below is a summary of Auxilio stock option and warrant activity during the nine month period ended September 30, 2014:
	Options	Shares	Weighted Average Exercise Price	Weighted Average Remaining Term in Years	Aggregate
					Intrinsic Value
	Outstanding at December 31, 2013	5,256,349	$1.03
	Granted	400,000	1.29
	Exercised	-200,676	0.95
	Cancelled	-404,784	1.02
	Outstanding at September 30, 2014	5,050,889	$1.05	5.05	$759,285
	Exercisable at September 30, 2014	4,303,858	$1.04	4.4	$641,204
	Warrants	Shares	Weighted Average Exercise Price	Weighted Average Remaining Term in Years	Aggregate
					Intrinsic Value
	Outstanding at December 31, 2013	2,983,565	$1.15
	Granted	-	-
	Exercised	-122,500	1.01
	Cancelled	-652,500	1.31
	Outstanding at September 30, 2014	2,208,565	$1.11	3.6	$141,750
	Exercisable at September 30, 2014	1,508,565	$1.16	3.6	$113,750
	During the nine months ended September 30, 2014, we granted a total of 400,000 options to executive employees to purchase shares of our common stock at an exercise price range of $1.25 to $1.33 per share. The exercise price equals the fair value of our stock on the grant date.  Half of these options have graded vesting annually over three years starting February 2014. The remaining half vest contingent on performance based parameters occurring in calendar 2015. The fair value of the options was determined using the Black-Scholes option-pricing model.  The assumptions used to calculate the fair market value are as follows: (i) risk-free interest rate range of 0.07% to 0.09%; (ii) estimated volatility range of 64.00% to 64.72%; (iii) dividend yield range of 0.0%; and (iv) expected life of the options of three years.
	For the three and nine months ended September 30, 2014 and 2013, stock-based compensation expense recognized in the statements of operations, including amounts for restricted stock discussed below, is as follows:
		Three Months		Nine months
		Ended September 30,		Ended September 30,
		2014	2013	2014	2013
	Cost of revenues	$20,050	$18,304	$150,029	$116,115
	Sales and marketing	12,406	14,963	35,818	88,657
	General and administrative expense	43,329	60,146	143,250	204,313
	Total stock based compensation expense	$75,785	$93,413	$329,097	$409,085

4_Restricted_Stock

4. Restricted Stock	9 Months Ended
	Sep. 30, 2014
Notes	'
4. Restricted Stock	'
	4.           RESTRICTED STOCK
	In November 2008, we entered into a five year joint marketing agreement (the “Sodexo Agreement”) with Sodexo Operations, LLC, (“Sodexo”) to provide our document services to Sodexo’s healthcare customer base in the United States.  On May 11, 2011, we amended the Sodexo Agreement (the “May 2011 Amendment”).  Pursuant to the Sodexo Agreement, as amended by the May 2011 Amendment, Sodexo provided additional sales and marketing resources and expanded the marketing effort directed towards existing or potential Sodexo hospital clients.  The term of the Sodexo Agreement was extended to December 31, 2014.  Upon signing the May 2011 Amendment, we granted 200,000 shares of restricted stock to Sodexo.  These shares vested as follows:  66,667 immediately upon signing, 66,667 on May 11, 2013 and 66,666 on May 11, 2014.  The immediately vested shares resulted in a charge to marketing expense of $54,667 in 2011.  The cost of the remaining shares was to be recognized over the vesting periods using the current market price of the stock at each periodic reporting date. On April 18, 2012, we granted 23,437 shares to Sodexo as a result of a new sale.  These shares were to vest as follows: 7,812 on April 18, 2013, 7,812 on April 18, 2014 and 7,813 on April 18, 2015. On July 1, 2012, we granted another 31,765 shares to Sodexo as a result of another new sale.  These shares were to vest as follows:  10,588 on July 1, 2013, 10,588 on July 1, 2014 and 10,588 on July 1, 2015.
	The Sodexo Agreement was further amended in October 2012 (such amendment referred to herein as the “October 2012 Amendment”) in which we eliminated the additional sales and marketing resources that we added under the May 2011 Amendment.  Under these terms we no longer paid the annual marketing fee, but continued to pay to Sodexo a quarterly commission based on actual revenues received by us from certain existing customers and any new customers Sodexo brought to us who signed an agreement for services by August 3, 2013. For the nine months ended September 30, 2014 and 2013 these commissions totaled $43,485 and $37,557, respectively.
	On January 11, 2013 we terminated the Sodexo Agreement. This resulted in the immediate vesting of 265,179 shares of restricted stock. The cost recognized for these shares totaled $165,181 for the nine months ended September 30, 2013, and is included in sales and marketing expense in the accompanying Condensed Consolidated Statement of Operations.
	In July 2014, in connection with our acquisition of the common stock of Delphiis, Inc., we issued to a key employee 400,000 shares of restricted stock as part of his employment agreement. The shares vest as follows:
	Vesting Date	Shares
	1-Jul-16	100,000
	1-Jul-17	100,000
	1-Jul-18	100,000
	1-Jul-19	100,000
	The cost recognized for these shares totaled $15,233 for the three and nine months ended September 30, 2014, and is included in cost of goods sold in the accompanying Condensed Consolidated Statement of Operations.

5_Net_Income_Per_Share

5. Net Income Per Share	9 Months Ended
	Sep. 30, 2014
Notes	'
5. Net Income Per Share	'
	5.           NET INCOME PER SHARE
	Basic net income per share is calculated using the weighted average number of shares of our common stock issued and outstanding during a certain period, and is calculated by dividing net income by the weighted average number of shares of the Company’s common stock issued and outstanding during such period. Diluted net income per share is calculated using the weighted average number of common and potentially dilutive common shares outstanding during the period, using the as-if converted method for secured convertible notes, and the treasury stock method for options and warrants.
	For the three months ended September 30, 2014, potentially dilutive securities consist of options and warrants to purchase 7,259,454 shares of common stock at prices ranging from $0.47 to $2.15 per share and secured convertible notes that could convert into 1,550,000 sharesof common stock. For the three months ended September 30, 2014, of these potentially dilutive securities, only 1,213,058 of the shares to purchase common stock from the options and warrants and 456,044 of the convertible notes are included in the computation of diluted earnings per share because the effect of including the remaining instruments would be anti-dilutive.
	For the nine months ended September 30, 2014, potentially dilutive securities consist of options and warrants to purchase 7,259,454 shares of common stock at prices ranging from $0.47 to $2.15 per share and secured convertible notes that could convert into 1,700,000 shares of common stock. For the nine months ended September 30, 2014, of these potentially dilutive securities, only 1,660,012 of the shares to purchase common stock from the options and warrants are included in the computation of diluted earnings per share because the effect of including the remaining instruments would be anti-dilutive.
	For the three months ended September 30, 2013, potentially dilutive securities consist of options and warrants to purchase 9,289,559 shares of common stock at prices ranging from $0.30 to $2.15 per share and secured convertible notes that could convert into 1,800,000 shares of common stock. A total of 8,413,610 of the options and warrants outstanding, as well as the aforementioned convertible notes have been excluded in the computation of diluted earnings per share as their effect would be anti-dilutive.
	For the nine months ended September 30, 2013, potentially dilutive securities consisted of options and warrants to purchase 9,289,559 shares of common stock at prices ranging from $0.30 to $2.15 per share and secured convertible notes that could convert into 1,800,000 shares of common stock. All of the options and warrants outstanding and the aforementioned convertible notes have been excluded in the computation of diluted earnings per share due as their effect would be anti-dilutive.
	The following table sets forth the computation of basic and diluted net income per share:
		Three Months Ended September 30,		Nine Months Ended September 30,
		2014	2013	2014	2013
	Numerator:
	Net income	$741,643	$811,466	$657,512	$678,657
	Effects of dilutive securities:
	Convertible notes payable	30,811	-	-	-
	Net income after effects of conversion of notes payable	$772,454	$811,466	$657,512	$678,657
	Denominator:
	Denominator for basic calculation weighted average shares	23,067,462	20,197,222	21,539,066	20,163,444
	Dilutive common stock equivalents:
	Secured convertible notes	456,044	-	-	-
	Options and warrants	1,213,058	875,949	1,660,012	875,949
	Denominator for diluted calculation weighted average shares	24,736,564	21,073,171	23,199,078	21,039,393
	Net income per share:
	Basic net income per share	$0.03	$0.04	$0.03	$0.03
	Diluted net income per share	$0.03	$0.04	$0.03	$0.03

6_Intangible_Assets

6. Intangible Assets	9 Months Ended
	Sep. 30, 2014
Notes	'
6. Intangible Assets	'
	6.           INTANGIBLE ASSETS
	Intangible assets consist of the following:
		Gross	Accumulated	Net	Useful Life (years)
		Carrying	Amortization	Carrying
		Amount		Amount
	Acquired technology	$900,000	($22,500)	$877,500	10
	Customer relationships	400,000	-20,000	380,000	5
	Trademarks	50,000	-8,333	41,667	1.5
	Non-compete agreements	20,000	-1,667	18,333	3
	Total intangible assets	$1,370,000	($52,500)	$1,317,500
	Please see Note 15, Stock Purchase Agreement – Delphiis, Inc., below for further discussion of the origin of these intangible assets.

7_Accounts_Receivable

7. Accounts Receivable	9 Months Ended
	Sep. 30, 2014
Notes	'
7. Accounts Receivable	'
	7.           ACCOUNTS RECEIVABLE
	A summary of accounts receivable is as follows:
		30-Sep-14	31-Dec-13
	Trade receivable	$6,376,255	$4,572,656
	Unapplied advances and unbilled revenue	-800,483	-715,865
	Allowance for doubtful accounts	-	-
	Total accounts receivable	$5,575,772	$3,856,791

8_Line_of_Credit

8. Line of Credit	9 Months Ended
	Sep. 30, 2014
Notes	'
8. Line of Credit	'
	8.           LINE OF CREDIT
	On May 4, 2012, we entered into a Loan and Security Agreement (the “Loan and Security Agreement”) with Avidbank Corporate Finance, a Division of Avidbank (“Avidbank”).  On April 26, 2013, we amended the Loan and Security Agreement with Avidbank. On April 25, 2014, we again amended the Loan and Security Agreement with Avidbank (the “Second Avidbank Amendment”). Under the Second Avidbank Amendment, the term of the revolving line-of-credit of up to $2.0 million extends through April 25, 2015, at an interest rate of prime plus 1.0% per annum.  As of September 30, 2014 the interest rate was 4.25%.  There will be no minimum interest payable with respect to any calendar quarter. The amount available to us at any given time is the lesser of (a) $2.0 million, or (b) the amount available under our borrowing base (80% of our eligible accounts, minus (1) accrued client lease payables, and minus (2) accrued equipment pool liability).  While there are outstanding credit extensions, our adjusted EBITDA may be an adjusted EBITDA loss of up to $200,000 for any single quarter so long as we achieve a positive adjusted EBITDA for the prior quarter and subsequent quarter. The foregoing description is qualified in its entirety by reference to the Second Amendment to the Loan and Security Agreement between Avidbank Corporate Finance and Auxilio, Inc. which is found as Exhibit 10.1 to Form 10-Q as filed with the Securities and Exchange Commission (“SEC”) on May 14, 2014. We believe we were in compliance with all of the Avidbank agreement covenants as of September 30, 2014 and December 31, 2013.
	In connection with our entry into the Loan and Security Agreement, as amended, we granted Avidbank (a) a general, first-priority security interest in all of our assets, equipment and inventory, and (b) a security interest in all of our intellectual property under an Intellectual Property Security Agreement.  Each holder of convertible promissory notes issued in a private offering in July 2011 agreed to subordinate its right of payment and security interest in and to our assets to Avidbank throughout the term of the Loan and Security Agreement.  As additional consideration for the Loan and Security Agreement, we issued Avidbank a 5-year warrant to purchase up to 72,098 shares of our common stock at an exercise price of $1.387 per share.  The foregoing descriptions are qualified in their entirety by reference to the respective agreements.  These agreements are found in our Form 8-K filed on May 9, 2012 as Exhibits 10.1, 10.2, 10.3 and 10.4.
	Interest charges associated with the Avidbank line of credit, including loan acquisition costs totaled $2,196 and $6,334, respectively, for the three months ended September 30, 2014 and 2013, respectively, and $20,628 and $29,426, respectively, for the nine months ended September 30, 2014 and 2013.

9_Notes_Payable_Related_Partie

9. Notes Payable - Related Parties	9 Months Ended
	Sep. 30, 2014
Notes	'
9. Notes Payable - Related Parties	'
	9.           NOTES PAYABLE – RELATED PARTIES
	We assumed debt totaling $463,723 when we acquired Delphiis, Inc. effective July 1, 2014 (see Note 15).  In July, 2014, we paid $100,000 to the note holders upon Delphiis’s collection of $100,000 from accounts receivable outstanding as of June 30, 2014. For the remaining $363,723 we have outstanding promissory notes payable to an employee and another principal who were majority owners of Delphiis, Inc.  The notes bear interest at the rate of 4% per annum, upon which we are to make quarterly interest-only payments on the total principal amount outstanding at the end of each calendar quarter.  The notes mature on July 31, 2016 and contain no prepayment penalty. Pursuant to the terms of the notes, we will accelerate payment on fifty percent (50%) of the outstanding amount due under such notes at such time as Delphiis, Inc. achieves $1,500,000 of bookings measured from the date of the Agreement, and the remaining fifty percent (50%) will be paid at such time as Delphiis, Inc. achieves $4,000,000 of bookings measured from July 1, 2014. Interest expense on the notes, including amortization of the discount, for the three months ended September 30, 2014 totaled $8,689.

10_Convertible_Notes_Payable

10. Convertible Notes Payable	9 Months Ended
	Sep. 30, 2014
Notes	'
10. Convertible Notes Payable	'
	10.           CONVERTIBLE NOTES PAYABLE
	Effective July 29, 2011, we closed on a private offering of secured convertible promissory notes and warrants (“Units”) for gross proceeds of $1,850,000.  Each of the Units consisted of (i) a $5,000 secured convertible promissory note (each a “Note” and collectively “Notes”) and (ii) a warrant (each a “Warrant” and collectively “Warrants”) to purchase 1,000 shares of our common stock at an exercise price of $1.50 per share.  The Notes matured July 29, 2014 and were secured by our tangible and intangible assets, subject to the senior security interest of Avidbank.  The Notes accrued interest at a rate of eight percent (8%) per annum, compounded annually, and the interest on the outstanding balance of the Notes was payable no later than thirty (30) days following the close of each calendar quarter.  The Notes were convertible into 1,850,000 shares of common stock.  The Warrants expire April 29, 2016 and are exercisable to purchase up to 370,000 shares of our common stock. We additionally granted piggyback registration rights to the investors in this offering.  Several members of our Board at the time, including John Pace, Michael Joyce, Mark St. Clare and Michael Vanderhoof, participated in the offering.
	Interest charges associated with the convertible notes payable, including amortization of the discounts and loan acquisition costs totaled $208,601 and $279,530 for the nine months ended September 30, 2014 and 2013, respectively.
	We also paid Cambria Capital, LLC a placement fee of $149,850 in sales commissions, reimbursement for costs associated with the placement of the Units and to issue a warrant to purchase up to 199,800 shares of common stock exercisable at a price of $1.50 per share.  Cambria Capital, LLC is an affiliate of Michael Vanderhoof, a member of the Board. The engagement of Cambria Capital, LLC, the payment of the placement fee and the issuance of the warrant to Cambria Capital, LLC were approved by a majority of the disinterested members of the Board. We additionally granted piggyback registration rights to Cambria Capital, LLC that are the same as those afforded to the investors in the offering.
	The holders of the Notes elected to convert all of the principal into 1,850,000 shares of common stock during the term of the Notes with 150,000 shares converted during 2012 and 2013, 150,000 shares converted from March, 2014, to June, 2014 and the remaining 1,550,000 shares converted in July, 2014. The warrants remain outstanding until their exercise or expiration.

11_Employment_Agreements

11. Employment Agreements	9 Months Ended
	Sep. 30, 2014
Notes	'
11. Employment Agreements	'
	11.           EMPLOYMENT AGREEMENTS
	Effective January 1, 2012, we entered into an employment agreement with Joseph J. Flynn, our President and Chief Executive Officer (“CEO”) since 2009 (the “Flynn Agreement”). The Flynn Agreement provided that Mr. Flynn would continue his employment as our President and CEO. The Flynn Agreement had a term of two years, provided for an annual base salary of $269,087, and contained an auto renewal provision.  Mr. Flynn also received the customary employee benefits available to our employees. Mr. Flynn is also received a bonus of $127,324 in 2013, the achievement of which was based on Company performance metrics. The foregoing summary of the Flynn Agreement is qualified in its entirety by reference to the full text of the employment agreement, which was filed as Exhibit 10.2 to our 8-K filing on December 23, 2011.
	Effective January 1, 2014, we entered into a new employment agreement with Mr. Flynn (the “2014 Flynn Agreement”). The 2014 Flynn Agreement provides that Mr. Flynn will continue his employment as our President and CEO. The 2014 Flynn Agreement has a term of two years, provides for an annual base salary of $275,000, and will automatically renew for subsequent twelve (12) month terms unless either party provides advance written notice to the other that such party does not wish to renew the agreement for a subsequent twelve (12) months.  Mr. Flynn also receives the customary employee benefits available to our employees. Mr. Flynn is also entitled to receive a bonus of up to $150,000 per year, the achievement of which is based on Company performance metrics. Further, the 2014 Flynn Agreement revised the vesting schedule of warrants granted to Mr. Flynn in January 2013. The revision spreads the vesting date of the remaining 300,000 unvested shares from 150,000 on January 1, 2015 and 150,000 on January 1, 2016 to 100,000 on January 1, 2015, 100,000 on January 1, 2016 and 100,000 on January 1, 2017. These warrants will vest contingent with the achievement of certain financial performance metrics of the Company in calendar years 2014, 2015 and 2016.  We may terminate Mr. Flynn’s employment under the 2014 Flynn Agreement without cause at any time on thirty (30) days advance written notice, at which time Mr. Flynn would receive severance pay for twelve (12) months and be fully vested in all options and warrants granted to date. The foregoing summary of the 2014 Flynn Agreement is qualified in its entirety by reference to the full context of the employment agreement which is found as Exhibit 10.2 to our 10-Q filing on May 14, 2014.
	Effective January 1, 2012, we entered into an employment agreement with Paul T. Anthony, our Chief Financial Officer (“CFO”) since 2004 (the “Anthony Agreement”). The Anthony Agreement provided that Mr. Anthony would continue to serve as our Executive Vice President (“EVP”) and CFO. The Anthony Agreement had a term of two years, and provided for an annual base salary of $219,037 and contained an auto renewal provision. Mr. Anthony also received the customary employee benefits available to our employees. Mr. Anthony is also received a bonus of $93,280 in 2013, the achievement of which was based on Company performance metrics.   The foregoing summary of the Anthony Agreement is qualified in its entirety by reference to the full text of the employment agreement, which was filed as Exhibit 10.1 to our 8-K filing on December 23, 2011.
	Effective January 1, 2014, we entered into a new employment agreement with Mr. Anthony, (the “2014 Anthony Agreement”). The 2014 Anthony Agreement provides that Mr. Anthony will continue to serve as our EVP and CFO. The 2014 Anthony Agreement has a term of two years, and provides for an annual base salary of $225,000. The 2014 Anthony Agreement will automatically renew for subsequent twelve (12) month terms unless either party provides advance written notice to the other that such party does not wish to renew the agreement for a subsequent twelve (12) months.  Mr. Anthony also receives the customary employee benefits available to our employees. Mr. Anthony is also entitled to receive a bonus of up to $108,000 per year, the achievement of which is based on Company performance metrics.  Further, the 2014 Anthony Agreement revised the vesting schedule of warrants granted to Mr. Anthony in January 2013. The revision spreads the vesting date of the remaining 200,000 unvested shares from 100,000 on January 1, 2015 and 100,000 on January 1, 2016 to 66,667 on January 1, 2015, 66,667 on January 1, 2016 and 66,666 on January 1, 2017. These warrants will vest contingent upon the achievement of certain financial performance metrics of the Company in calendar years 2014, 2015 and 2016.  We may terminate Mr. Anthony’s employment under the 2014 Anthony Agreement without cause at any time on thirty (30) days advance written notice, at which time Mr. Anthony would receive severance pay for twelve months and be fully vested in all options and warrants granted to date. The foregoing summary of the 2014 Anthony Agreement is qualified in its entirety by to the full context of the employment agreement which is found as Exhibit 10.3 to our 10-Q filing on May 14, 2014.

12_Concentrations

12. Concentrations	9 Months Ended
	Sep. 30, 2014
Notes	'
12. Concentrations	'
	12.           CONCENTRATIONS
	Cash Concentrations
	At times, cash balances held in financial institutions are in excess of federally insured limits.  Management performs periodic evaluations of the relative credit standing of financial institutions and limits the amount of risk by selecting financial institutions with a strong credit standing.
	Major Customers
	Our three largest customers accounted for approximately 40% of our revenues for the nine months ended September 30, 2014 and our three largest customers accounted for approximately 41% of our revenues for the nine months ended September 30, 2013. Our largest customers had net accounts receivable totaling approximately $1,600,000 and $480,000 as of September 30, 2014 and December 31, 2013 respectively.

13_Segment_Reporting

13. Segment Reporting	9 Months Ended
	Sep. 30, 2014
Notes	'
13. Segment Reporting	'
	13.           SEGMENT REPORTING
	We have adopted ASC 280, “Segment Reporting”.  Because we operate in one business segment based on our integration and management strategies, segment disclosure has not been presented.

14_Goodwill

14. Goodwill	9 Months Ended
	Sep. 30, 2014
Notes	'
14. Goodwill	'
	14.           GOODWILL
	We performed an impairment test of goodwill as of December 31, 2013, determining that its estimated fair value based on its market capitalization was greater than our carrying amount including goodwill. We did not perform step 2 since the fair value was greater than the carrying amount.
	No triggering events were noted during the nine months ended September 30, 2014; therefore management did not feel it was necessary to perform an interim impairment test.

15_Stock_Purchase_Agreement_De

15. Stock Purchase Agreement - Delphiis, Inc.	9 Months Ended
	Sep. 30, 2014
Notes	'
15. Stock Purchase Agreement - Delphiis, Inc.	'
	15.           STOCK PURCHASE AGREEMENT – DELPHIIS, INC.
	As previously disclosed in our Current Report on Form 8-K, filed with the SEC, on July 8, 2014, on July 7, 2014 we entered into a Stock Purchase Agreement (the “Agreement”) with Delphiis, Inc., a California corporation (“Delphiis”), certain stockholders of Delphiis (the “Stockholders”), and Mike Gentile, as seller representative (“Gentile”).  By agreement of the parties, the effective date of the Agreement was July 1, 2014.
	Pursuant to the Agreement, we acquired 100% of the issued and outstanding shares of common stock (the “Shares”) of Delphiis from the Stockholders.  The purchase price paid for the Shares consisted of three components: the Securities Consideration, the Cash Consideration, and the Debt Assumption.
	-	The Securities Consideration consisted of 930,406 shares of our common stock, which was the number of shares having an aggregate value of $1,250,000, with the price per share equal to the average of the closing price of our common stock on the OTC Markets for the 20 most recent trading days prior to the closing date, rounded up to the nearest whole number of shares.
	-	The Cash Consideration was equal to $1,000,000.
	-	The Debt Assumption was equal to $463,723 which was owed by Delphiis to Gentile and two other parties.  By way of background, of such amount, $363,723 is represented by certain amended and restated promissory notes (the “Notes”) dated of even date with the Agreement, which bear interest at the rate of 4% per annum, and pursuant to which Delphiis was to make quarterly interest-only payments on the total principal amount outstanding at the end of each calendar quarter.   The Notes have a maturity date which is 24 months from the date of the Agreement and contain no prepayment penalty.  Pursuant to the terms of the Notes, Delphiis will accelerate payment on (i) fifty percent (50%) of the outstanding amount due under such Notes at such time as Delphiis achieves $1,500,000 of bookings measured from the date of the Agreement, and (ii) the remaining fifty percent (50%) will be paid at such time as Delphiis achieves $4,000,000 of bookings measured from the date of the Agreement, all as set forth in the Notes.  Delphiis also agreed to pay the remaining $100,000 to Gentile and the other noteholders upon Delphiis’s collection of $100,000 from accounts receivable outstanding as of June 30, 2014.  Pursuant to the Agreement, Auxilio, as the sole owner of Delphiis, agreed to assume the obligations of Delphiis and to make the payments pursuant to the terms of the Notes.
	The allocation of the purchase price of the assets acquired and liabilities assumed based on their fair values was as follows:
	Acquired technology	$900,000
	Customer relationships	400,000
	Trademarks	50,000
	Non-compete agreements	20,000
	Goodwill	956,639
	Other assets received	376,775
	Deferred revenue	-154,089
	Notes payable	-424,000
	Other liabilities assumed	-113,325
	Total	$2,012,000
	Purchased identifiable intangible assets are amortized on a straight-line basis over the respective useful lives. Our estimated useful life of the identifiable intangible assets acquired ranges from 1.5 to 10 years. We recognized goodwill of $956,639. Goodwill is recognized as we expect to be able to realize synergies between the two companies, primarily our ability to provide market and reach for the Delphiis products and services to Auxilio’s customers.
	The Company incurred approximately $98,000 in legal, accounting and other professional fees related to this acquisition, all of which were expensed during the nine months ended September 30, 2014.
	Escrow Agreement
	In connection with the Agreement, we entered into an escrow agreement with the Stockholders and Colonial Stock Transfer (the “Escrow Agent”), pursuant to which we deposited $100,000 of the Cash Consideration into an escrow to be held by the Escrow Agent to cover any indemnification claims made pursuant to the Agreement.  If no indemnification claims have been made prior to July 7, 2015, the Escrow Agent will release the escrowed funds to the Stockholders.
	Employment Agreement
	In connection with the Agreement, we entered into an employment agreement with Mr. Gentile (the “Gentile Employment Agreement”), pursuant to which Gentile was employed to serve as our Executive Vice President of Innovation and Security.  The initial term of the Gentile Employment Agreement is for three years (unless sooner terminated), and automatically renews for subsequent twelve-month periods unless either party determines to not renew.  Gentile’s base annual salary will be $200,000, and Gentile will be eligible to receive incentive compensation.  Pursuant to the Gentile Employment Agreement, Gentile will also receive 400,000 shares of our common stock, vesting as follows: 100,000 shares will vest 2 years from the date of the Gentile Employment Agreement; 100,000 shares will vest 3 years from the date of the Gentile Employment Agreement; 100,000 shares will vest 4 years from the date of the Gentile Employment Agreement; and 100,000 shares will vest 5 years from the date of the Gentile Employment Agreement.
	Pro Forma Information
	The following supplemental unaudited pro forma information presents the combined operating results of the Company and the acquired business during the three and nine months ended September 30, 2014 and 2013, as if the acquisition had occurred at the beginning of each of the periods presented. The pro forma information is based on the historical financial statements of the Company and that of the acquired business. Amounts are not necessarily indicative of the results that may have been attained had the combinations been in effect at the beginning of the periods presented or that may be achieved in the future.
		Three Months		Nine months
		Ended September 30,		Ended September 30,
		2014	2013	2014	2013
	Pro forma revenue	$11,257,870	$10,902,869	$32,473,317	$31,269,243
	Pro forma net income	$741,643	$518,681	$706,630	$226,346
	Pro forma basic net income per share	$0.03	$0.02	$0.03	$0.01
	Pro forma diluted net income per share	$0.03	$0.02	$0.03	$0.01

3_Options_and_Warrants_Schedul

3. Options and Warrants: Schedule of Stock Options, Activity (Tables)	9 Months Ended
	Sep. 30, 2014
Tables/Schedules	'
Schedule of Stock Options, Activity	'
	Options	Shares	Weighted Average Exercise Price	Weighted Average Remaining Term in Years	Aggregate
					Intrinsic Value
	Outstanding at December 31, 2013	5,256,349	$1.03
	Granted	400,000	1.29
	Exercised	-200,676	0.95
	Cancelled	-404,784	1.02
	Outstanding at September 30, 2014	5,050,889	$1.05	5.05	$759,285
	Exercisable at September 30, 2014	4,303,858	$1.04	4.4	$641,204

3_Options_and_Warrants_Schedul1

3. Options and Warrants: Schedule of Warrants, Activity (Tables)	9 Months Ended
	Sep. 30, 2014
Tables/Schedules	'
Schedule of Warrants, Activity	'
	Warrants	Shares	Weighted Average Exercise Price	Weighted Average Remaining Term in Years	Aggregate
					Intrinsic Value
	Outstanding at December 31, 2013	2,983,565	$1.15
	Granted	-	-
	Exercised	-122,500	1.01
	Cancelled	-652,500	1.31
	Outstanding at September 30, 2014	2,208,565	$1.11	3.6	$141,750
	Exercisable at September 30, 2014	1,508,565	$1.16	3.6	$113,750

3_Options_and_Warrants_Schedul2

3. Options and Warrants: Schedule of Stock-Based Compensation Exprense Allocation (Tables)	9 Months Ended
	Sep. 30, 2014
Tables/Schedules	'
Schedule of Stock-Based Compensation Exprense Allocation	'
		Three Months		Nine months
		Ended September 30,		Ended September 30,
		2014	2013	2014	2013
	Cost of revenues	$20,050	$18,304	$150,029	$116,115
	Sales and marketing	12,406	14,963	35,818	88,657
	General and administrative expense	43,329	60,146	143,250	204,313
	Total stock based compensation expense	$75,785	$93,413	$329,097	$409,085

4_Restricted_Stock_Restricted_

4. Restricted Stock: Restricted Stock Vesting Schedule for Key Employee from Delphiis, Inc. (Tables)	9 Months Ended
	Sep. 30, 2014
Tables/Schedules	'
Restricted Stock Vesting Schedule for Key Employee from Delphiis, Inc.	'
	Vesting Date	Shares
	1-Jul-16	100,000
	1-Jul-17	100,000
	1-Jul-18	100,000
	1-Jul-19	100,000

5_Net_Income_Per_Share_Schedul

5. Net Income Per Share: Schedule of Computation of Earnings Per Share, Basic and Diluted (Tables)	9 Months Ended
	Sep. 30, 2014
Tables/Schedules	'
Schedule of Computation of Earnings Per Share, Basic and Diluted	'
		Three Months Ended September 30,		Nine Months Ended September 30,
		2014	2013	2014	2013
	Numerator:
	Net income	$741,643	$811,466	$657,512	$678,657
	Effects of dilutive securities:
	Convertible notes payable	30,811	-	-	-
	Net income after effects of conversion of notes payable	$772,454	$811,466	$657,512	$678,657
	Denominator:
	Denominator for basic calculation weighted average shares	23,067,462	20,197,222	21,539,066	20,163,444
	Dilutive common stock equivalents:
	Secured convertible notes	456,044	-	-	-
	Options and warrants	1,213,058	875,949	1,660,012	875,949
	Denominator for diluted calculation weighted average shares	24,736,564	21,073,171	23,199,078	21,039,393
	Net income per share:
	Basic net income per share	$0.03	$0.04	$0.03	$0.03
	Diluted net income per share	$0.03	$0.04	$0.03	$0.03

6_Intangible_Assets_Schedule_o

6. Intangible Assets: Schedule of Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2014
Tables/Schedules	'
Schedule of Intangible Assets	'
		Gross	Accumulated	Net	Useful Life (years)
		Carrying	Amortization	Carrying
		Amount		Amount
	Acquired technology	$900,000	($22,500)	$877,500	10
	Customer relationships	400,000	-20,000	380,000	5
	Trademarks	50,000	-8,333	41,667	1.5
	Non-compete agreements	20,000	-1,667	18,333	3
	Total intangible assets	$1,370,000	($52,500)	$1,317,500

7_Accounts_Receivable_Schedule

7. Accounts Receivable: Schedule of Accounts Receivable (Tables)	9 Months Ended
	Sep. 30, 2014
Tables/Schedules	'
Schedule of Accounts Receivable	'
		30-Sep-14	31-Dec-13
	Trade receivable	$6,376,255	$4,572,656
	Unapplied advances and unbilled revenue	-800,483	-715,865
	Allowance for doubtful accounts	-	-
	Total accounts receivable	$5,575,772	$3,856,791

15_Stock_Purchase_Agreement_De1

15. Stock Purchase Agreement - Delphiis, Inc.: Schedule of Allocation of the Purchase Price of the Assets Acquired and Liabilities Assumed (Tables)	9 Months Ended
	Sep. 30, 2014
Tables/Schedules	'
Schedule of Allocation of the Purchase Price of the Assets Acquired and Liabilities Assumed	'
	Acquired technology	$900,000
	Customer relationships	400,000
	Trademarks	50,000
	Non-compete agreements	20,000
	Goodwill	956,639
	Other assets received	376,775
	Deferred revenue	-154,089
	Notes payable	-424,000
	Other liabilities assumed	-113,325
	Total	$2,012,000

15_Stock_Purchase_Agreement_De2

15. Stock Purchase Agreement - Delphiis, Inc.: Business Acquisition, Pro Forma Information (Tables)	9 Months Ended
	Sep. 30, 2014
Tables/Schedules	'
Business Acquisition, Pro Forma Information	'
		Three Months		Nine months
		Ended September 30,		Ended September 30,
		2014	2013	2014	2013
	Pro forma revenue	$11,257,870	$10,902,869	$32,473,317	$31,269,243
	Pro forma net income	$741,643	$518,681	$706,630	$226,346
	Pro forma basic net income per share	$0.03	$0.02	$0.03	$0.01
	Pro forma diluted net income per share	$0.03	$0.02	$0.03	$0.01

3_Options_and_Warrants_Schedul3

3. Options and Warrants: Schedule of Stock Options, Activity (Details) (USD $)	9 Months Ended
	Sep. 30, 2014
Details	'
Outstanding, Beginning Balance	5,256,349
Outstanding, Weighted Average Exercise Price, Beginning Balance	$1.03
Granted	400,000
Granted, Weighted Average Exercise Price	$1.29
Exercised	-200,676
Exercised, Weighted Average Exercise Price	$0.95
Cancelled	-404,784
Cancelled, Weighted Average Exercise Price	$1.02
Outstanding, Ending Balance	5,050,889
Outstanding, Weighted Average Exercise Price, Ending Balance	$1.05
Outstanding, Weighted Average Remaining Term in Years	'5 years 18 days
Outstanding, Aggregate Intrinsic Value	$759,285
Exercisable	4,303,858
Exercisable, Weighted Average Exercise Price	$1.04
Exercisable, Weighted Average Remaining Term in Years	'4 years 4 months 24 days
Exercisable, Aggregate Intrinsic Value	$641,204

3_Options_and_Warrants_Schedul4

3. Options and Warrants: Schedule of Warrants, Activity (Details) (USD $)	9 Months Ended
	Sep. 30, 2014
Details	'
Warrants, Outstanding, Beginning Balance	2,983,565
Outstanding, Weighted Average Exercise Price, Starting Balance	$1.15
Granted	0
Granted, Weighted Average Exercise Price	$0
Exercised	-122,500
Exercised, Weighted Average Exercise Price	$1.01
Cancelled	-652,500
Cancelled, Weighted Average Exercise Price	$1.31
Warrants, Outstanding, Ending Balance	2,208,565
Outstanding, Weighted Average Exercise Price, Ending Balance	$1.11
Outstanding, Weighted Average Remaining Contractual Life	'3 years 7 months 6 days
Outstanding, Intrinsic Value	$141,750
Exercisable	1,508,565
Exercisable, Weighted Average Exercise Price	$1.16
Exercisable, Weighted Average Remaining Contractual Life	'3 years 7 months 6 days
Exercisable, Intrinsic Value	$113,750

3_Options_and_Warrants_Details

3. Options and Warrants (Details) (Employee Stock Option, USD $)	9 Months Ended
	Sep. 30, 2014
Exercise Price Range, Lower Range Limit	$1.25
Exercise Price Range, Upper Range Limit	$1.33
Fair Value Assumptions, Method Used	'Black-Scholes option-pricing model
Dividend yield	0.00%
Expected life	'3 years
Minimum	'
Risk-free interest rate	0.07%
Estimated volatility	64.00%
Maximum	'
Risk-free interest rate	0.09%
Estimated volatility	64.72%

3_Options_and_Warrants_Schedul5

3. Options and Warrants: Schedule of Stock-Based Compensation Exprense Allocation (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Stock-based compensation expense	$75,785	$93,413	$329,097	$409,085
Cost of Sales	'	'	'	'
Stock-based compensation expense	20,050	18,304	150,029	116,115
Selling and Marketing Expense	'	'	'	'
Stock-based compensation expense	12,406	14,963	35,818	88,657
General and Administrative Expense	'	'	'	'
Stock-based compensation expense	$43,329	$60,146	$143,250	$204,313

4_Restricted_Stock_Details

4. Restricted Stock (Details) (USD $)

3 Months Ended

9 Months Ended

3 Months Ended

9 Months Ended

12 Months Ended

9 Months Ended

6 Months Ended

9 Months Ended

12 Months Ended

Sep. 30, 2014

Sep. 30, 2013

Sep. 30, 2014

Sep. 30, 2013

Sep. 30, 2014

Sep. 30, 2013

Sep. 30, 2014

Sep. 30, 2013

Sep. 30, 2014

Sep. 30, 2013

Dec. 31, 2011

Sep. 30, 2014

Dec. 31, 2012

Jun. 30, 2012

Sep. 30, 2013

Dec. 31, 2013

Dec. 31, 2011

Selling and Marketing Expense

Selling and Marketing Expense

Selling and Marketing Expense

Selling and Marketing Expense

Sodexo Operations LLC

Sodexo Operations LLC

Sodexo Operations LLC

Restricted Stock

Restricted Stock

Restricted Stock

Restricted Stock

Restricted Stock

Restricted Stock

Selling and Marketing Expense

Common Stock

Sodexo Operations LLC

Sodexo Operations LLC

Sodexo Operations LLC

Sodexo Operations LLC

Sodexo Operations LLC

Shares, Granted

'

'

'

'

'

'

'

'

'

'

'

'

31,765

23,437

'

'

200,000

Award Vesting Rights

'

'

'

'

'

'

'

'

'

'

'

'

'These shares were to vest as follows: 10,588 on July 1, 2013, 10,588 on July 1, 2014 and 10,588 on July 1, 2015

'These shares were to vest as follows: 7,812 on April 18, 2013, 7,812 on April 18, 2014 and 7,813 on April 18, 2015

'

'

'These shares vested as follows: 66,667 immediately upon signing, 66,667 on May 11, 2013 and 66,666 on May 11, 2014

Stock-based compensation expense

$75,785

$93,413

$329,097

$409,085

$12,406

$14,963

$35,818

$88,657

'

'

$54,667

$15,233

'

'

$165,181

'

'

Commissions and Marketing Fees

'

'

'

'

'

'

'

'

$43,485

$37,557

'

'

'

'

'

'

'

Shares Vested

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

265,179

'

Shares, Granted

'

'

0

'

'

'

'

'

'

'

'

400,000

'

'

'

'

'

4_Restricted_Stock_Restricted_1

4. Restricted Stock: Restricted Stock Vesting Schedule for Key Employee from Delphiis, Inc. (Details)	9 Months Ended
	Sep. 30, 2014
1-Jul-16	'
Shares	100,000
1-Jul-17	'
Shares	100,000
1-Jul-18	'
Shares	100,000
1-Jul-19	'
Shares	100,000

5_Net_Income_Per_Share_Details

5. Net Income Per Share (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	'	8,413,610	'	'
Options And Warrants	'	'	'	'
Potentially Dilutive Securities	7,259,454	9,289,559	7,259,454	9,289,559
Options And Warrants | Minimum	'	'	'	'
Potentially dilutive securities, exercise price	0.47	0.3	0.47	0.3
Options And Warrants | Maximum	'	'	'	'
Potentially dilutive securities, exercise price	2.15	2.15	2.15	2.15
Convertible Debt Securities	'	'	'	'
Potentially Dilutive Securities	1,550,000	1,800,000	1,700,000	1,800,000

5_Net_Income_Per_Share_Schedul1

5. Net Income Per Share: Schedule of Computation of Earnings Per Share, Basic and Diluted (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Numerator:	'	'	'	'
Net income	$741,643	$811,466	$657,512	$678,657
Effects of dilutive securities:	'	'	'	'
Convertible notes payable	30,811	0	0	0
Net income after effects of conversion of notes payable	$772,454	$811,466	$657,512	$678,657
Denominator:	'	'	'	'
Denominator for basic calculation weighted average shares	23,067,462	20,197,222	21,539,066	20,163,444
Dilutive Common Stock equivalents:	'	'	'	'
Secured convertible notes	456,044	0	0	0
Options and warrants	1,213,058	875,949	1,660,012	875,949
Denominator for diluted calculation weighted average shares	24,736,564	21,073,171	23,199,078	21,039,393
Net income (loss) per share:	'	'	'	'
Basic net income (loss) per share	$0.03	$0.04	$0.03	$0.03
Diluted net income (loss) per share	$0.03	$0.04	$0.03	$0.03

6_Intangible_Assets_Schedule_o1

6. Intangible Assets: Schedule of Intangible Assets (Details) (USD $)	9 Months Ended
	Sep. 30, 2014
Gross Carrying Amount	$1,370,000
Accumulated Amortization	-52,500
Net Carrying Amount	1,317,500
Technology-Based Intangible Assets	'
Gross Carrying Amount	900,000
Accumulated Amortization	-22,500
Net Carrying Amount	877,500
Useful life (years)	'10 years
Customer Relationships	'
Gross Carrying Amount	400,000
Accumulated Amortization	-20,000
Net Carrying Amount	380,000
Useful life (years)	'5 years
Trademarks	'
Gross Carrying Amount	50,000
Accumulated Amortization	-8,333
Net Carrying Amount	41,667
Useful life (years)	'1 year 6 months
Noncompete Agreements	'
Gross Carrying Amount	20,000
Accumulated Amortization	-1,667
Net Carrying Amount	$18,333
Useful life (years)	'3 years

7_Accounts_Receivable_Schedule1

7. Accounts Receivable: Schedule of Accounts Receivable (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013
Details	'	'
Trade receivable	$6,376,255	$4,572,656
Unapplied advances and unbilled revenue	-800,483	-715,865
Allowance for doubtful accounts	0	0
Total accounts receivable	$5,575,772	$3,856,791

8_Line_of_Credit_Details

8. Line of Credit (Details) (USD $)	9 Months Ended	12 Months Ended		3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2014	Dec. 31, 2012	4-May-12	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2012
				Line of Credit	Line of Credit	Line of Credit	Line of Credit	Line of Credit
Line of Credit Facility, Initiation Date	4-May-12	'	'	'	'	'	'	'
Line of Credit Facility, Maximum Borrowing Capacity	'	'	$2,000,000	'	'	'	'	'
Debt Instrument, Description of Variable Rate Basis	'	'	'	'	'	'	'	'prime plus 1.0% per annum
Debt Instrument, Interest Rate, Effective Percentage	'	'	'	4.25%	'	4.25%	'	'
Debt Instrument, Interest Rate Terms	'	'	'	'	'	'There will be no minimum interest payable with respect to any calendar quarter	'	'
Line of Credit Facility, Borrowing Capacity, Description	'	'The amount available to us at any given time is the lesser of (a) $2.0 million, or (b) the amount available under our borrowing base (80% of our eligible accounts, minus (1) accrued client lease payables, and minus (2) accrued equipment pool liability).	'	'	'	'	'	'
Line of Credit Facility, Covenant Terms	'	'While there are outstanding credit extensions, our adjusted EBITDA may be an adjusted EBITDA loss of up to $200,000 for any single quarter so long as we achieve a positive adjusted EBITDA for the prior quarter and subsequent quarter	'	'	'	'	'	'
Warrant Exercise Term, Years	'	'	'	'	'	5	'	'
Class of Warrant, Outstanding	'	'	'	72,098	'	72,098	'	'
Exercise Price of Warrants	'	'	'	$1.39	'	$1.39	'	'
Interest Charges	'	'	'	$2,196	$6,334	$20,628	$29,426	'

9_Notes_Payable_Related_Partie1

9. Notes Payable - Related Parties (Details) (Delphiis, Inc., USD $)	3 Months Ended	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2014
Acquisition, Debt Assumed	'	$463,723
$100,000 Promissory Note	'	'
Repayments of Debt	'	100,000
Debt Instrument, Face Amount	100,000	100,000
$363,723 Promissory Note	'	'
Debt Instrument, Face Amount	363,723	363,723
Debt Instrument, Interest Rate, Stated Percentage	4.00%	4.00%
Debt Instrument, Maturity Date	'	31-Jul-16
Amortization of Debt Discount	$8,689	'

10_Convertible_Notes_Payable_D

10. Convertible Notes Payable (Details) (USD $)	1 Months Ended	4 Months Ended	9 Months Ended	24 Months Ended	9 Months Ended		12 Months Ended		9 Months Ended
	Jul. 31, 2014	Jun. 30, 2014	Sep. 30, 2014	Dec. 31, 2013	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2011	Sep. 30, 2014	Sep. 30, 2014
	Common Stock	Common Stock	Common Stock	Common Stock	Convertible Debt Securities	Convertible Debt Securities	Convertible Debt Securities	Convertible Debt Securities	Convertible Debt Securities
								Cambria Capital LLC	Common Stock
Private Offering of Secured Convertible Notes And Warrants Closed Date	'	'	'	'	29-Jul-11	'	'	'	'
Proceeds From Convertible Notes and Warrants	'	'	'	'	'	'	$1,850,000	'	'
Debt Instrument, Description	'	'	'	'	'Each of the Units consisted of (i) a $5,000 secured convertible promissory note (each a “Note” and collectively “Notes”) and (ii) a warrant (each a “Warrant” and collectively “Warrants”) to purchase 1,000 shares of our common stock at an exercise price of $1.50 per share.	'	'	'	'
Debt Instrument, Maturity Date	'	'	'	'	29-Jul-14	'	'	'	'
Debt Instrument, Interest Rate, Stated Percentage	'	'	'	'	8.00%	'	'	'	'
Debt Instrument, Convertible, Number of Equity Instruments	'	'	'	'	'	'	'	'	1,850,000
Warrant Expiration Date	'	'	'	'	29-Apr-16	'	'	'	'
Class of Warrant, Outstanding	'	'	'	'	370,000	'	'	199,800	'
Interest Charges	'	'	'	'	208,601	279,530	'	'	'
Commissions and Marketing Fees	'	'	'	'	$149,850	'	'	'	'
Exercise Price of Warrants	'	'	'	'	'	'	'	$1.50	'
Debt Conversion, Converted Instrument, Shares Issued	1,550,000	150,000	1,850,000	150,000	'	'	'	'	'

11_Employment_Agreements_Detai

11. Employment Agreements (Details) (USD $)	9 Months Ended	12 Months Ended
	Sep. 30, 2014	Dec. 31, 2013	Dec. 31, 2012
Chief Executive Officer	'	'	'
Base Salary, Annual Amount	$275,000	'	$269,087
Salary Bonus, Annual Amount	150,000	127,324	'
Employment Agreement, Revised Warrant Vesting Schedule Description	'The revision spreads the vesting date of the remaining 300,000 unvested shares from 150,000 on January 1, 2015 and 150,000 on January 1, 2016 to 100,000 on January 1, 2015, 100,000 on January 1, 2016 and 100,000 on January 1, 2017. These warrants will vest contingent with the achievement of certain financial performance metrics of the Company in calendar years 2014, 2015 and 2016	'	'
Chief Financial Officer	'	'	'
Base Salary, Annual Amount	225,000	'	219,037
Salary Bonus, Annual Amount	$108,000	$93,280	'
Employment Agreement, Revised Warrant Vesting Schedule Description	'The revision spreads the vesting date of the remaining 200,000 unvested shares from 100,000 on January 1, 2015 and 100,000 on January 1, 2016 to 66,667 on January 1, 2015, 66,667 on January 1, 2016 and 66,666 on January 1, 2017. These warrants will vest contingent upon the achievement of certain financial performance metrics of the Company in calendar years 2014, 2015 and 2016.	'	'

12_Concentrations_Details

12. Concentrations (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013	Sep. 30, 2014	Dec. 31, 2013	Sep. 30, 2014	Sep. 30, 2013
			Customer Concentration Risk	Customer Concentration Risk	Sales	Sales
					Customer Concentration Risk	Customer Concentration Risk
Concentration Risk, Percentage	'	'	'	'	40.00%	41.00%
Accounts receivable, net	$5,575,772	$3,856,791	$1,600,000	$480,000	'	'

15_Stock_Purchase_Agreement_De3

15. Stock Purchase Agreement - Delphiis, Inc. (Details) (USD $)	9 Months Ended
	Sep. 30, 2014
Shares, Granted	0
Mike Gentile	'
Base Salary, Annual Amount	200,000
Common Stock | Mike Gentile	'
Shares, Granted	400,000
Delphiis, Inc.	'
Percentage of issued and outstanding shares of common stock acquired	100.00%
Cash Payments to Acquire Business	1,000,000
Acquisition, Debt Assumed	463,723
Legal, accounting and other professional fees related to acquisition	98,000
Delphiis, Inc. | Funds to be Released from Escrow Upon Satisfaction of Indemnification Claims	'
Cash Payments to Acquire Business	100,000
Delphiis, Inc. | Minimum	'
Estimated useful life of the identifiable intangible assets acquired	'1 year 6 months
Delphiis, Inc. | Maximum	'
Estimated useful life of the identifiable intangible assets acquired	'10 years
Delphiis, Inc. | $363,723 Promissory Note	'
Debt Instrument, Face Amount	363,723
Debt Instrument, Interest Rate, Stated Percentage	4.00%
Debt Instrument, Maturity Date, Description	'The Notes have a maturity date which is 24 months from the date of the Agreement and contain no prepayment penalty
Debt Instrument, Payment Terms	'Pursuant to the terms of the Notes, Delphiis will accelerate payment on (i) fifty percent (50%) of the outstanding amount due under such Notes at such time as Delphiis achieves $1,500,000 of bookings measured from the date of the Agreement, and (ii) the remaining fifty percent (50%) will be paid at such time as Delphiis achieves $4,000,000 of bookings measured from the date of the Agreement, all as set forth in the Notes
Delphiis, Inc. | $100,000 Promissory Note	'
Debt Instrument, Face Amount	100,000
Delphiis, Inc. | Common Stock	'
Business Acquisition, Equity Interest Issued, Number of Shares	930,406
Business Acquisition, Equity Interest Issued, Value Assigned	1,250,000

15_Stock_Purchase_Agreement_De4

15. Stock Purchase Agreement - Delphiis, Inc.: Schedule of Allocation of the Purchase Price of the Assets Acquired and Liabilities Assumed (Details) (USD $)	9 Months Ended
	Sep. 30, 2014	Dec. 31, 2013
Goodwill	$2,473,656	$1,517,017
Total	2,012,000	'
Delphiis, Inc.	'	'
Goodwill	956,639	'
Other assets received	376,775	'
Deferred revenue	-154,089	'
Notes payable	-424,000	'
Other liabilities assumed	-113,325	'
Delphiis, Inc. | Technology-Based Intangible Assets	'	'
Finite-lived Intangible Assets Acquired	900,000	'
Delphiis, Inc. | Customer Relationships	'	'
Finite-lived Intangible Assets Acquired	400,000	'
Delphiis, Inc. | Trademarks	'	'
Finite-lived Intangible Assets Acquired	50,000	'
Delphiis, Inc. | Noncompete Agreements	'	'
Finite-lived Intangible Assets Acquired	$20,000	'

15_Stock_Purchase_Agreement_De5

15. Stock Purchase Agreement - Delphiis, Inc.: Business Acquisition, Pro Forma Information (Details) (Delphiis, Inc., USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Delphiis, Inc.	'	'	'	'
Pro forma revenue	$11,257,870	$10,902,869	$32,473,317	$31,269,243
Pro forma net income	$741,643	$518,681	$706,630	$226,346
Pro forma basic net income per share	$0.03	$0.02	$0.03	$0.01
Pro forma diluted net income per share	$0.03	$0.02	$0.03	$0.01