Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | May 12, 2020 | Jun. 28, 2019 | |
Document Information [Line Items] | |||
Entity Registrant Name | BIO KEY INTERNATIONAL INC | ||
Entity Central Index Key | 0001019034 | ||
Trading Symbol | bkyi | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | true | ||
Entity Interactive Data Current | Yes | ||
Entity Common Stock, Shares Outstanding (in shares) | 21,212,297 | ||
Entity Public Float | $ 8.2 | ||
Entity Shell Company | false | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Title of 12(b) Security | Common Stock, par value $0.0001 per share |
Consolidated Balance Sheets
Consolidated Balance Sheets | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
ASSETS | ||
Cash and cash equivalents | $ 79,013 | $ 323,943 |
Accounts receivable, net | 126,000 | 1,574,032 |
Due from factor | 110,941 | 56,682 |
Inventory | 429,119 | 998,829 |
Resalable software license rights | 1,125,000 | |
Prepaid expenses and other | 108,397 | 150,811 |
Investment – non-marketable security | 512,821 | |
Total current assets | 1,366,291 | 4,229,297 |
Resalable software license rights, net of current portion | 73,802 | 6,790,610 |
Equipment and leasehold improvements, net | 95,509 | 148,608 |
Capitalized contract costs, net | 231,519 | 319,199 |
Deposits and other assets | 8,712 | 8,712 |
Operating lease right-of-use assets | 566,479 | 0 |
Intangible assets, net | 154,386 | 195,906 |
Total non-current assets | 1,130,407 | 7,463,035 |
TOTAL ASSETS | 2,496,698 | 11,692,332 |
LIABILITIES | ||
Accounts payable | 919,294 | 481,269 |
Accrued liabilities | 686,885 | 548,232 |
Convertible notes payable, net of debt discount and debt issuance costs | 2,255,454 | |
Deferred revenue | 359,212 | 196,609 |
Operating lease liabilities, current portion | 170,560 | 0 |
Total current liabilities | 4,391,405 | 1,226,110 |
Operating lease liabilities, net of current portion | 390,466 | 0 |
Total non-current liabilities | 390,466 | 0 |
TOTAL LIABILITIES | 4,781,871 | 1,226,110 |
Commitments and Contingencies | ||
STOCKHOLDERS’ EQUITY (DEFICIT) | ||
Common stock — authorized, 170,000,000 shares; issued and outstanding; 14,411,432 and 13,977,868 of $.0001 par value at December 31, 2019 and December 31, 2018, respectively | 1,441 | 1,398 |
Additional paid-in capital | 87,436,402 | 85,599,140 |
Accumulated deficit | (89,723,016) | (75,134,316) |
TOTAL STOCKHOLDERS’ EQUITY (DEFICIT) | (2,285,173) | 10,466,222 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | $ 2,496,698 | $ 11,692,332 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Common stock, shares authorized (in shares) | 170,000,000 | 170,000,000 |
Common stock, shares issued (in shares) | 14,411,432 | 13,977,868 |
Common stock, shares outstanding (in shares) | 14,411,432 | 13,977,868 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue | $ 2,267,528 | $ 4,044,542 |
Costs and other expenses | 2,461,245 | 4,164,190 |
Gross Profit (Loss) | (193,717) | (119,648) |
Operating expenses | ||
Selling, general and administrative | 5,036,820 | 5,333,906 |
Research, development and engineering | 1,331,667 | 1,415,401 |
Total operating expenses before impairment | 6,368,487 | 6,749,307 |
Impairment of resalable software license rights | (6,957,516) | |
Operating loss | (13,519,720) | (6,868,955) |
Other income (expense) | ||
Interest income | 154 | 80 |
Interest expense | (1,069,134) | |
Total other income (expense) | (1,068,980) | 80 |
Net loss | (14,588,700) | (6,868,875) |
Deemed dividend from trigger of anti-dilution provision feature | (1,428,966) | |
Convertible preferred stock dividends | (198,033) | |
Net loss available to common stockholders | $ (14,588,700) | $ (8,495,874) |
Basic and Diluted Loss per Common Share (in dollars per share) | $ (1.03) | $ (0.73) |
Basic and Diluted (in shares) | 14,223,685 | 11,607,933 |
Service [Member] | ||
Revenue | $ 925,245 | $ 1,012,576 |
Costs and other expenses | 272,318 | 443,210 |
License [Member] | ||
Revenue | 442,649 | 1,739,897 |
Costs and other expenses | 916,112 | 3,072,356 |
Hardware [Member] | ||
Revenue | 899,634 | 1,292,069 |
Costs and other expenses | $ 1,272,815 | $ 648,624 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Stockholders' Equity (Deficit) - USD ($) | Cumulative Effect, Period of Adoption, Adjustment [Member]Preferred Stock [Member]Series A-1 Convertible Preferred Stock [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Preferred Stock [Member]Series B-1 Convertible Preferred Stock [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Common Stock [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Additional Paid-in Capital [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Retained Earnings [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Preferred Stock [Member]Series A-1 Convertible Preferred Stock [Member] | Preferred Stock [Member]Series B-1 Convertible Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Series A-1 Convertible Preferred Stock [Member] | Series B-1 Convertible Preferred Stock [Member] | Total |
Balance (in shares) at Dec. 31, 2016 | 90,000 | 105,000 | ||||||||||||
Conversion of dividends payable on A-1 preferred stock (in shares) | 150,000 | |||||||||||||
Balance (in shares) at Dec. 31, 2017 | 62,596 | 105,000 | 7,691,324 | 62,596 | 105,000 | |||||||||
Balance (Accounting Standards Update 2014-09 [Member]) at Dec. 31, 2017 | $ 240,017 | $ 240,017 | ||||||||||||
Balance at Dec. 31, 2017 | $ 6 | $ 11 | $ 769 | $ 80,829,001 | $ (67,076,492) | $ 13,753,295 | ||||||||
Issuance of common stock for directors’ fees (in shares) | 20,976 | |||||||||||||
Issuance of common stock for directors’ fees | $ 2 | 37,530 | 37,532 | |||||||||||
Issuance of common stock pursuant to securities purchase agreement (in shares) | 1,380,000 | |||||||||||||
Issuance of common stock pursuant to securities purchase agreement | $ 138 | 2,069,862 | 2,070,000 | |||||||||||
Dividends declared on preferred stock | (198,033) | (198,033) | ||||||||||||
Conversion of A-1 preferred stock to common stock (in shares) | (62,596) | 1,738,778 | ||||||||||||
Conversion of A-1 preferred stock to common stock | $ (6) | $ 174 | (168) | |||||||||||
Conversion of B-1 preferred stock to common stock (in shares) | (105,000) | 2,916,668 | ||||||||||||
Conversion of B-1 preferred stock to common stock | $ (11) | $ 292 | (281) | |||||||||||
Conversion of dividends payable on A-1 preferred stock (in shares) | 98,893 | |||||||||||||
Conversion of dividends payable on A-1 preferred stock | $ 10 | 356,005 | 356,015 | |||||||||||
Conversion of dividends payable on B-1 preferred stock (in shares) | 131,229 | |||||||||||||
Conversion of dividends payable on B-1 preferred stock | $ 13 | 472,411 | 472,424 | |||||||||||
Deemed dividend related to down-round features | 1,428,966 | (1,428,966) | ||||||||||||
Stock issuance costs | (338,845) | (338,845) | ||||||||||||
Share-based compensation | 942,692 | 942,692 | ||||||||||||
Net loss | (6,868,875) | (6,868,875) | ||||||||||||
Balance (in shares) at Dec. 31, 2018 | 13,977,868 | |||||||||||||
Balance at Dec. 31, 2018 | $ 1,398 | 85,599,140 | (75,134,316) | 10,466,222 | ||||||||||
Issuance of common stock for directors’ fees (in shares) | 36,897 | |||||||||||||
Issuance of common stock for directors’ fees | $ 3 | 35,010 | 35,013 | |||||||||||
Share-based compensation | 912,707 | 912,707 | ||||||||||||
Net loss | (14,588,700) | (14,588,700) | ||||||||||||
Issuance of common stock for commitment fees net of adjustments (in shares) | 396,667 | |||||||||||||
Issuance of common stock for commitment fees net of adjustments | $ 40 | 594,960 | 595,000 | |||||||||||
Warrant debt discount valuation | 595,662 | 595,662 | ||||||||||||
Legal and commitment fees | (301,077) | (301,077) | ||||||||||||
Balance (in shares) at Dec. 31, 2019 | 14,411,432 | |||||||||||||
Balance at Dec. 31, 2019 | $ 1,441 | $ 87,436,402 | $ (89,723,016) | $ (2,285,173) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
CASH FLOW FROM OPERATING ACTIVITIES: | ||
Net loss | $ (14,588,700) | $ (6,868,875) |
Adjustments to reconcile net loss to cash used for operating activities: | ||
Bad debt expense | 564,361 | 720,000 |
Depreciation | 81,852 | 84,617 |
Amortization of intangible assets and writeoff | 43,256 | 15,596 |
Amortization of resalable software license rights | 843,287 | 1,513,237 |
Impairment of resalable software license rights | 6,957,516 | |
Amortization of debt discount | 571,332 | |
Amortization of capitalized contract costs | 138,679 | 123,171 |
Amortization of debt issuance costs | 424,980 | |
Share based compensation for employees and consultants | 912,707 | 942,692 |
Stock based fees to directors | 35,013 | 37,532 |
Amortization of operating lease right-of-use assets | 36,458 | |
Change in assets and liabilities: | ||
Accounts receivable | 883,671 | 1,341,914 |
Due from factor | (54,259) | 53,183 |
Capitalized contract costs | (50,999) | (202,353) |
Inventory | 569,710 | (51,982) |
Resalable software license rights | 41,005 | 1,144,961 |
Prepaid expenses and other | 29,819 | 1,843 |
Accounts payable | 438,025 | (17,961) |
Accrued liabilities | 138,653 | (139,793) |
Deferred revenue | 162,603 | (311,257) |
Operating lease liabilities | (29,316) | |
Net cash used for operating activities | (1,850,347) | (1,613,475) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Patents | (1,736) | (30,398) |
Capital expenditures | (28,753) | (52,060) |
Purchase of investment – non-marketable security | (512,821) | |
Net cash used for investing activities | (543,310) | (82,458) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from issuance of convertible notes | 3,217,000 | |
Repayment of convertible notes | (707,000) | |
Proceeds from issuance of common stock | 1,875,100 | |
Costs to issue notes and common stock | (361,273) | (143,945) |
Net cash provided by financing activities | 2,148,727 | 1,731,155 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (244,930) | 35,222 |
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 323,943 | 288,721 |
CASH AND CASH EQUIVALENTS, END OF YEAR | 79,013 | 323,943 |
Cash paid for: | ||
Interest | 72,822 | |
Income taxes | ||
Noncash investing and financing activities: | ||
Accrual of unpaid preferred dividends | 198,033 | |
Deemed dividend from trigger of anti-dilution provision feature | 1,428,966 | |
Share based loan commitment fees | 595,000 | |
Debt issuance cost allocated to equity | 152,000 | |
Debt discount issued with convertible note | 550,000 | |
Warrant debt discount valuation | 595,662 | |
Accounting Standards Update 2016-02 [Member] | ||
Noncash investing and financing activities: | ||
Right-of-use asset addition under ASC 842 | 719,812 | |
Operating lease liabilities under ASC 842 | 707,217 | |
Conversion of Dividends Payable on Series A-1 Preferred Stock to Common Stock [Member] | ||
Noncash investing and financing activities: | ||
Conversion of preferred dividends payable to common stock | 356,015 | |
Conversion of A1 Preferred Stock to Common Stock [Member] | ||
Noncash investing and financing activities: | ||
Conversion of preferred stock to common stock | 6,259,600 | |
Conversion of Dividends Payable on Series B-1 Preferred Stock to Common Stock [Member] | ||
Noncash investing and financing activities: | ||
Conversion of preferred dividends payable to common stock | 472,426 | |
Conversion of Series B-1 Shares into Common Stock [Member] | ||
Noncash investing and financing activities: | ||
Conversion of preferred stock to common stock | $ 10,500,000 |
Note A - The Company and Summar
Note A - The Company and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Business Description and Accounting Policies [Text Block] | NOTE A —THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Business The Company, founded in 1993, Going Concern and Basis of Presentation The Company has incurred significant losses to date, and at December 31, 2019, $90 December 31, 2019, $79,000, $324,000 December 31, 2018. As discussed below, the Company has financed itself in the past through access to the capital markets by issuing secured and convertible debt securities, convertible preferred stock, common stock, and through factoring receivables. The Company currently requires approximately $525,000 If the Company is unable to generate sufficient revenue to meet its goals, it will need to obtain additional third No not The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP"), which contemplate continuation of the Company as a going concern, and assumes continuity of operations, realization of assets and the satisfaction of liabilities and commitments in the normal course of business. The matters described in the preceding paragraphs raise substantial doubt about the Company’s ability to continue as a going concern. Recoverability of a major portion of the recorded asset amounts shown in the accompanying balance sheet is dependent upon the Company’s ability to meet its financing requirements on a continuing basis, and become profitable in its future operations. The accompanying consolidated financial statements do not Reclassification Reclassifications occurred to certain prior year amounts in order to conform to the current year presentation to segregate cost of sales for licenses and hardware. The reclassifications have no Summary of Significant Accounting Policies A summary of the significant accounting policies consistently applied in the preparation of the accompanying consolidated financial statements follows: 1. Principles of Consolidation The accompanying consolidated financial statements include the accounts of BIO-key International, Inc. and its wholly-owned subsidiaries (collectively, the “Company”). Intercompany accounts and transactions have been eliminated in consolidation. 2. Use of Estimates Our consolidated financial statements are prepared in accordance with GAAP as set forth in the Financial Accounting Standards Board’s (FASB) Accounting Standards Codification (ASC) and consider the various staff accounting bulletins and other applicable guidance issued by the U.S. Securities and Exchange Commission (SEC). These accounting principles require us to make certain estimates, judgments and assumptions. The Company believes that the estimates, judgments and assumptions upon which it relies are reasonable based upon information available to us at the time that these estimates, judgments and assumptions are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities as of the date of the financial statements as well as the reported amounts of revenues and expenses during the periods presented. Certain significant accounting policies that contain subjective management estimates and assumptions include those related to revenue recognition, accounts receivable, inventory, intangible assets and long-lived assets, and income taxes. To the extent there are material differences between these estimates, judgments or assumptions and actual results, its consolidated financial statements will be affected. In many cases, the accounting treatment of a particular transaction is specifically dictated by GAAP and does not not 3. Revenue Recognition The Company adopted ASC Topic 606 January 1, 2018 not 606, five ● Identify the contract with a customer ● Identify the performance obligations in the contract ● Determine the transaction price ● Allocate the transaction price to performance obligations in the contract ● Recognize revenue when or as the Company satisfies a performance obligation All of the Company's performance obligations, and associated revenue, are generally transferred to customers at a point in time, with the exception of support and maintenance, and professional services, which are generally transferred to the customer over time. Software licenses Software license revenue consist of fees for perpetual and SaaS software licenses for one Hardware Hardware revenue consists of fees for associated equipment sold with or without a software license arrangement, such as servers, locks and fingerprint readers. Customers are not third may Support and Maintenance Support and Maintenance revenue consists of fees for unspecified upgrades, telephone assistance and bug fixes. The Company satisfies its Support and Maintenance performance obligation by providing “stand-ready” assistance as required over the contract period. The Company records deferred revenue (contract liability) at time of prepayment until the contracts term occurs. Revenue is recognized over time on a ratable basis over the contract term. Support and Maintenance contracts are up to one Professional Services Professional services revenues consist primarily of fees for deployment and optimization services, as well as training. The majority of the Company’s consulting contracts are billed on a time and materials basis, and revenue is recognized based on the amount billable to the customer in accordance with practical expedient ASC 606 10 55 18. Contracts with Multiple Performance Obligations Some contracts with customers contain multiple performance obligations. For these contracts, the Company accounts for individual performance obligations separately if they are distinct. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. The standalone selling prices are determined based on overall pricing objectives, taking into consideration market conditions and other factors, including the value of the contracts, the cloud applications sold, customer demographics, geographic locations, and the number and types of users within the contracts. The Company considered several factors in determining that control transfers to the customer upon shipment of hardware and availability of download of software. These factors include that legal title transfers to the customer, the Company has a present right to payment, and the customer has assumed the risks and rewards of ownership. Accounts receivable from customers are typically due within 30 not Costs to Obtain and Fulfill a Contract Costs to obtain and fulfill a contract are predominantly sales commissions earned by the sales force and are considered incremental and recoverable costs of obtaining a contract with a customer. These costs are deferred and then amortized over a period of benefit determined to be four 4. Cash Equivalents Cash equivalents consist of liquid investments with original maturities of three December 31, 2019 2018, 5. Accounts Receivable Accounts receivable are carried at original amount less an estimate made for doubtful receivables based on a review of all outstanding amounts on a monthly basis. Management determines the allowance for doubtful receivables by regularly evaluating individual customer receivables and considering a customer’s financial condition, credit history, and current economic conditions. Accounts receivable are written off when deemed uncollectible. As a result of the payment delays for a large customer, the Company has reserved $ 1,720,000 December 31, 2019 2018, 100 December 2018. 606 $1.1 2018. December 31, 2019, second $555,555 $555,555 March 2019, not Accounts receivable at December 31, 2019 2018 December 31, 201 9 201 8 Accounts receivable - current $ 139,785 $ 1,587,817 Accounts receivable - non current 1,720,000 1,720,000 1,859,785 3,307,817 Allowance for doubtful accounts - current (13,785 ) (13,785 ) Allowance for doubtful accounts - non current (1,720,000 ) (1,720,000 ) (1,733,785 ) (1,733,785 ) Accounts receivable, net of allowances for doubtful accounts $ 126,000 $ 1,574,032 The allowance for doubtful accounts for the years ended December 31, 2019 2018 Balance at Beginning of Year Charged to Costs and Expenses Deductions From Reserves Balance at End of Year Year Ended December 31, 201 9 Allowance for Doubtful Accounts $ 1,733,785 $ - $ - $ 1,733,785 Year Ended December 31, 201 8 Allowance for Doubtful Accounts $ 1,013,785 $ 720,000 $ - $ 1,733,785 Bad debt expenses (if any) are recorded in selling, general, and administrative expense. 6. Software License Rights Software license rights acquired for re-sale to end users are recorded as assets when purchased and are stated at the lower of cost or estimated net realizable value. The cost of the software license rights was initially allocated pro-rata to the maximum number of resalable end-user licenses in the rights contract. Through December 31, 2018, 1 2 ten 3 January 1, 2019, Management re-evaluates the total sub-licenses it expects to sell during the proceeding twelve The rights are also evaluated by management on a periodic basis to determine if estimated future net revenues, on a per sub-license basis, support the recorded basis of each license. If the estimated net revenues are less than the current carrying value of the capitalized software license rights, the Company will reduce the rights to their net realizable value. 7. Equipment and Leasehold Improvements, Intangible Assets and Depreciation and Amortization Equipment and leasehold improvements are stated at cost. Depreciation is provided for in amounts sufficient to relate the cost of depreciable assets to operations over the estimated service lives, principally using straight-line methods. Leasehold improvements are amortized over the shorter of the life of the improvement or the lease term, using the straight-line method. The estimated useful lives used to compute depreciation and amortization for financial reporting purposes are as follows: Years Equipment and leasehold improvements Equipment (years) 3 - 5 Furniture and fixtures (years) 3 - 5 Software (years) 3 Leasehold improvements life or lease term Intangible assets consist of patents. Patent costs are capitalized until patents are awarded. Upon award, such costs are amortized using the straight-line method over their respective economic lives. If a patent is denied, all costs are charged to operations in that year. 8. Impairment or Disposal of Long Lived Assets, including Intangible Assets The Company reviews long-lived assets, including intangible assets subject to amortization, whenever events or changes in circumstances indicate that the carrying amount of such an asset may not may 2019 9. Advertising Expense The Company expenses the costs of advertising as incurred. Advertising expenses for 2019 2018 $317,000 $309,000, 10. Deferred Revenue Deferred revenue includes customer advances and amounts that have been paid by customer for which the contractual maintenance terms have not 12 11. Research and Development Expenditures Research and development expenses include costs directly attributable to the conduct of research and development programs primarily related to the development of our software products and improving the efficiency and capabilities of our existing software. Such costs include salaries, payroll taxes, employee benefit costs, materials, supplies, depreciation on research equipment, services provided by outside contractors, and the allocable portions of facility costs, such as rent, utilities, insurance, repairs and maintenance, depreciation and general support services. All costs associated with research and development are expensed as incurred. 12. Earnings Per Share of Common Stock (“EPS”) The Company’s EPS is calculated by dividing net income (loss) applicable to common stockholders by the weighted-average number of common shares outstanding during the reporting period. Diluted EPS includes the effect from potential issuances of common stock, such as stock issuable pursuant to the conversion of preferred stock, exercise of stock options and warrants, when the effect of their inclusion is dilutive. See Note U - Earnings Per Share “EPS” for additional information. 13. Accounting for Stock-Based Compensation The Company accounts for share based compensation in accordance with the provisions of ASC 718 10, three four not may The following table presents share-based compensation expenses included in the Company’s consolidated statements of operations: Year ended December 31, 201 9 201 8 Selling, general and administrative $ 828,981 $ 855,125 Research, development and engineering 118,739 125,099 $ 947,720 $ 980,224 Valuation Assumptions for Stock Options For 2019 2018, 241,334 351,918 Year ended December 31, 201 9 201 8 Weighted average Risk free interest rate 2.33 % 2.70 % Expected life of options (in years) 4.50 4.50 Expected dividends 0 % 0 % Weighted average Volatility of stock price 84 % 143 % The stock volatility for each grant is determined based on the review of the experience of the weighted average of historical daily price changes of the Company’s common stock over the expected option term. The expected term was determined using the simplified method for estimating expected option life, which qualify as “plain-vanilla” options; and the risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods corresponding with the expected life of the option. 14. Derivative Liabilities In connection with the issuances of equity instruments or debt, the Company may may may may July 2017, 2017 11, 260 480 815 2017 11, not no 15. Income Taxes The provision for, or benefit from, income taxes includes deferred taxes resulting from the temporary differences in income for financial and tax purposes using the liability method. Such temporary differences result primarily from the differences in the carrying value of assets and liabilities. Future realization of deferred income tax assets requires sufficient taxable income within the carryback, carryforward period available under tax law. The Company evaluates, on a quarterly basis whether, based on all available evidence, if it is probable that the deferred income tax assets are realizable. Valuation allowances are established when it is more likely than not not 740 10, may The Company accounts for uncertain tax provisions in accordance with ASC 740 10 05, 16 . Leases In February 2016, 2016 02, 842 842 12 January 1, 2019 842 no not 842 no not The Company elected the package of practical expedients as permitted under the transition guidance, which allowed us: ( 1 2 not 3 not In accordance with ASC 842, one not one 842 20 25 2. not Lease liabilities and their corresponding ROU assets are recorded based on the present value of lease payments over the expected lease term. The implicit rate within our operating leases are generally not An option to extend the lease is considered in connection with determining the ROU asset and lease liability when it is reasonably certain we will exercise that option. An option to terminate is considered unless it is reasonably certain we will not For periods prior to the adoption of ASC 842, 842 no The impact of the adoption of ASC 842 As reported Adoption of ASC Balance December 31, 2018 842 - increase (decrease) January 1, 2019 Operating lease right-of-assets $ - $ 602,937 $ 602,937 Prepaid expenses and other $ 150,811 $ (12,595 ) $ 138,216 Total assets $ 11,692,332 $ 590,342 $ 12,282,674 Operating lease liabilities, current portion $ - $ 135,519 $ 135,519 Operating lease liabilities, net of current portion $ - $ 454,823 $ 454,823 Total liabilities $ 1,226,110 $ 590,342 $ 1,816,452 Total liabilities and stockholders’ equity $ 11,692,332 $ 590,342 $ 12,282,674 In the third 2019, $ 116,875 16. Recent Accounting Pronouncements In August 2018, No. 2018 15, 2018 15” 2018 15 December 15, 2019, 2018 15 2018 15 not In June 2016, 2016 13, 326 2016 13, not 2016 13 2016 13 no not may not 2016 13. 2016 13 December 15, 2022 2016 13 Management does not not |
Note B - Revenue From Contracts
Note B - Revenue From Contracts With Customers | 12 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | NOTE B—REVENUE FROM CONTRACTS WITH CUSTOMERS The Company adopted ASC 606 January 1, 2018 not Disaggregation of Revenue The following table summarizes revenue from contracts with customers for the years ended: North America South America EMEA* Asia December 31, 201 9 License fees $ 208,827 $ 46,717 $ 117,401 $ 69,704 $ 442,649 Hardware 388,938 12,636 342,304 155,756 899,634 Support and Maintenance 780,288 8,514 96,911 18,502 904,215 Professional services 14,030 - 3,000 4,000 21,030 Total Revenues $ 1,392,083 $ 67,867 $ 559,616 $ 247,962 $ 2,267,528 North America South America EMEA* Asia December 31, 201 8 License fees $ 318,271 $ 32,000 $ 278,516 $ 1,111,110 $ 1,739,897 Hardware 439,480 53,200 477,674 321,715 1,292,069 Support and Maintenance 805,800 665 60,820 27,321 894,606 Professional services 115,970 - 2,000 - 117,970 Total Revenues $ 1,679,521 $ 85,865 $ 819,010 $ 1,460,146 $ 4,044,542 * EMEA – Europe, Middle East, Africa Revenue recognized during the year ended December 31, 2019 $147,000. not $359,212 $196,609 December 31, 2019 December 31, 2018, Transaction Price Allocated to the Remaining Performance Obligations ASC 606 not December 31, 2019. ● The performance obligation is part of a contract that has an original expected duration of one 606 10 50 14. At December 31, 2019 one |
Note C - Factoring
Note C - Factoring | 12 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Factoring [Text Block] | NOTE C—FACTORING Due from factor consisted of the following as of December 31: Original Invoice Value Factored Amount Factored Balance due Year Ended December 31, 201 9 Factored accounts receivable $ 233,005 $ 122,064 $ 110,941 Year Ended December 31, 2018 Factored accounts receivable $ 221,120 $ 164,438 $ 56,682 The Company entered into an accounts receivable factoring arrangement with a financial institution (the “Factor”) which has been extended to October 31, 2020. $150,000 35% 75% 2.75% 15% Years Ended December 31, 201 9 201 8 Factoring fees $ 203,950 $ 186,845 |
Note D - Fair Values of Financi
Note D - Fair Values of Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | NOTE D—FAIR VALUES OF FINANCIAL INSTRUMENTS Cash and cash equivalents, accounts receivable, inventory, due from factor, accounts payable and accrued liabilities are carried at, or approximate, fair value because of their short-term nature. |
Note E - Concentration of Risk
Note E - Concentration of Risk | 12 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Concentration Risk Disclosure [Text Block] | NOTE E—CONCENTRATION OF RISK Financial instruments which potentially subject the Company to risk primarily consist of cash, short-term investments, and accounts receivables. The Company maintains its cash and cash equivalents with various financial institutions, which, at times may No December 31, 2019 2018. not The Company extends credit to customers on an unsecured basis in the normal course of business. The Company’s policy is to perform an analysis of the recoverability of its receivables at the end of each reporting period and to establish allowances where appropriate. The Company analyzes historical bad debts and contract losses, customer concentrations, and customer credit-worthiness when evaluating the adequacy of the allowances. During the year ended December 31, 2019, two 22% 14% December 31, 2018, three 27%, 14% 13% Three 18%, 16% 14% December 31, 2019. One 70% December 31, 2018. |
Note F - Inventory
Note F - Inventory | 12 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | NOTE F—INVENTORY Inventory is stated at the lower of cost, determined on a first first December 31: 201 9 201 8 Finished goods 287,761 496,358 Fabricated assemblies 141,358 502,471 Total inventory $ 429,119 $ 998,829 |
Note G - Resalable Software Lic
Note G - Resalable Software Licenses Rights | 12 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Research, Development, and Computer Software Disclosure [Text Block] | NOTE G—RESALABLE SOFTWARE LICENSES RIGHTS On November 11, 2015, $12,000,000. The Company initially determined the software license rights to be a finite lived intangible asset, and estimated that the software license rights shall be economically used over a 10 fourth 2015, not January 2017. first 2017. Through December 31, 2018, 1 2 ten 3 January 1, 2019, January 1, 2019. During the fourth 2019, no $6,957,516 fourth 2019, not A total of $843,888 $2,640,000 twelve December 31, 2019 2018, $12,000,000 $0 December 31, 2019. On December 31, 2015, third $180,000 2019. $40,404, $18,198 twelve December 31, 2019 2018, $106,198 $73,802 December 31, 2019. 201 9 201 8 Current software license rights $ - $ 1,125,000 Non-current software license rights 73,802 6,790,610 Total software license rights $ 73,802 $ 7,915,610 Estimated minimum amortization expense based on straight line amortization of the software license rights for each of the next five Years ending December 31 2020 $ 18,000 2021 $ 18,000 2022 $ 18,000 2023 $ 18,000 2024 $ 1,802 |
Note H - Investments
Note H - Investments | 12 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | NOTE H—INVESTMENTS During 2019, 4,000,000 $512,821 December, 2019. one 5% 20,000,000 |
Note I - Equipment and Leasehol
Note I - Equipment and Leasehold Improvements | 12 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | NOTE I —EQUIPMENT AND LEASEHOLD IMPROVEMENTS Equipment and leasehold improvements consisted of the following as of December 31: 201 9 201 8 Equipment $ 648,286 $ 619,533 Furniture and fixtures 164,079 164,079 Software 32,045 32,045 Leasehold improvements 23,403 23,403 867,813 839,060 Less accumulated depreciation and amortization (772,304 ) (690,452 ) Total $ 95,509 $ 148,608 Depreciation was $81,852 $84,617 2019 2018, |
Note J - Intangible Assets
Note J - Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Intangible Assets Disclosure [Text Block] | NOTE J —INTANGIBLE ASSETS Intangible assets consisted of the following as of December 31: 2019 2018 Gross Carrying Amount Accumulated Amortization Write-offs Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Patents and patents pending $ 380,080 $ (210,694 ) $ (15,000 ) $ 154,386 $ 378,344 $ (182,438 ) $ 195,906 Aggregate amortization expense for 2019 2018 $28,256 $15,596, 2019, $15,000 December 31, 2019 $ 20,000 2020 2022, $17,000 2023, $13,000 2024 $65,000 |
Note K - Accrued Liabilities
Note K - Accrued Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | NOTE K —ACCRUED LIABILITIES Accrued liabilities consisted of the following as of December 31: 201 9 201 8 Compensation $ 193,823 $ 224,135 Compensated absences 155,962 154,169 Accrued legal and accounting fees 105,933 77,133 Sales tax payable 17,248 9,436 Factoring fees 31,458 19,000 Other 182,461 64,359 Total $ 686,885 $ 548,232 |
Note L - Related Party
Note L - Related Party | 12 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | NOTE L —RELATED PARTY Licensing Agreement with Subsidiaries of China Goldjoy Group Limited. On November 11, 2015, one $12,000,000 October 2016 21.6% fourth 2019, $7 Securities Purchase Agreements with Wong Kwok Fong On April 3, 2018, 39,088 1 $3.60 $330,552 1,177,598 On May 31, 2018 23,508 1 $3.60 $25,463 660,073 Non-Interest-Bearing Advances During the 2019 December 31, 2019 $74,737 $114,000, 44 Table of Contents |
Note M - Deferred Revenue
Note M - Deferred Revenue | 12 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Deferred Revenue [Text bLock] | NOTE M—DEFERRED REVENUE Deferred revenue represents unearned revenue from customer prepayments prior to maintenance contractual term. Maintenance contracts include provisions for unspecified when-and-if available product updates and customer telephone support services, and are recognized ratably over the term of the service period. At December 31, 2019 2018, $359,000 $197,000, |
Note N - Convertible Notes Paya
Note N - Convertible Notes Payable | 12 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | NOTE N —CONVERTIBLE NOTES PAYABLE On April 4, 2019, $550,000 November 15, 2019 $1.50 5% 25%. 7% $40,000 two $550,000 45 $1,020,000. 80,000 $120,000 10,000 $15,000 November 1, 2019 On June 14, 2019, $157,000 10% November 14, 2019 $1.50 first five 10% 30% 200,000 $30,000 20,000 Both notes were repaid in full on July 10, 2019. For the two second 2019, 130,000 $195,000 $195,000 $17,000 Securities Purchase Agreement dated July 10, 2019 On July 10, 2019, $3,060,000 $2,550,000 $510,000. $918,000 180 $1,071,000 270 12 The Original Note is secured by a lien on substantially all of the Company’s assets and properties and is convertible at the option of the Investor in shares of common stock at a fixed conversion price of $1.50 25% In connection with the closing of the Original Note, the Company issued a five 2,000,000 $1.50 $50,000 266,667 $400,000 $193,500 $71,330. $595,662 On March 12, 2020, $3,789,000 April 13, 2020. $0.65 On April 12, 2020, May 6, 2020 June 12, 2020 $0.65 June 12, 2020. May 12, 2020, $3,250,000 4,999,995 Until the second 20% Secured convertible note payable relating to the Original Note, net of unamortized debt discount and debt issuance costs at December 31, 2019 Principal amount $ 3,060,000 Less unamortized debt discount (574,330 ) Less unamortized debt issuance costs (230,216 ) Notes payable, net of unamortized debt discount and debt issuance costs $ 2,255,454 Interest expense for the year ended December 31, 2019 April 4, 2019 debenture interest expense $ 55,000 April 4, 2019 debenture discount amortized 40,000 April 4, 2019 debenture deferred costs amortized 175,000 June 14, 2019 convertible note interest expense 17,822 June 14, 2019 convertible note deferred costs amortized 37,000 July 10, 2019 convertible note discount amortized 245,083 July 10, 2019 convertible note deferred costs amortized 212,980 July 10, 2019 warrant valuation (debt discount) amortization 286,249 Total $ 1,069,134 |
Note O - Leases
Note O - Leases | 12 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Lessee, Operating Leases [Text Block] | NOTE O —LEASES The Company’s leases office space in New Jersey, Hong Kong and Minnesota with lease termination dates of 2023, 2020, 2022, Year ended December 31, 2019 Lease cost Operating lease cost $ 186,246 Short-term lease cost 41,535 Total lease cost $ 227,781 Balance sheet information Operating right-of-use assets $ 566,479 Operating lease liabilities, current portion $ 170,560 Operating lease liabilities, non-current portion 390,466 Total operating lease liabilities $ 561,026 Weighted average remaining lease term (in years) – operating leases 3.33 Weighted average discount rate – operating leases 5.50 % Supplemental cash flow information related to leases were as follows, for the year ended December 31, 2019: Cash paid for amounts included in the measurement of operating lease liabilities $ 179,105 Maturities of operating lease liabilities were as follows: 2020 $ 197,724 2021 170,853 2022 160,817 2023 89,226 Total future lease payments $ 618,620 Less: imputed interest (57,594 ) Total $ 561,026 |
Note P - Commitments and Contin
Note P - Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Commitments Disclosure [Text Block] | NOTE P —COMMITMENTS AND CONTINGENCIES Litigation From time to time, we may December 31, 2019, not |
Note Q - Equity
Note Q - Equity | 12 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE Q — EQUITY 1. Within the limits and restrictions provided in the Company’s Certificate of Incorporation, the Board of Directors has the authority, without further action by the shareholders, to issue up to 5,000,000 $.0001 one December 31, 2019, 100,000 1 90,000 2015 0 105,000 1 105,000 2015 0 Series A- 1 Convertible Preferred Stock On October 22 29, 2015, 84,500 1 $100.00 $8,450,000. November 11, 2015, 5,500 1 $100.00 $550,000. In 2017, 1 $540,000 150,000 27,404 1 761,222 January 1, 2018 May 31,2018, 1 1 1,738,778 98,893 $356,015 1 As a result of the forgoing conversions, at December 31, 2018 2019 no 1 Overall balances and conversion of Series A- 1 Series A-1 Accrued Dividends Balance – January 1, 2017 90,000 $ 270,000 Accrual of dividends – Q1 2017 - 135,000 Accrual of dividends – Q2 2017 - 135,000 Accrual of dividends – Q3 2017 - 135,000 Conversion into common stock – September 2017 - (540,000 ) Conversion into common stock – October 2017 (27,404 ) - Accrual of dividends – Q4 2017 - 101,658 Balance – December 31, 2017 62,596 $ 236,658 Accrual of dividends – Q1 2018 - 93,894 Conversion into common stock – April 2018 (39,088 ) (330,552 ) Accrual of dividends – Q2 2018 (until final conversion) - 25,463 Conversion into common stock – May 2018 (23,508 ) (25,463 ) Balance – December 31, 2018 and December 31, 2019 - $ - Series B- 1 On November 11, 2015, 105,000 1 $100.00 $10,500,000. Between March 23, 2018 May 23, 2018, 1 1 2,916,668 131,229 $472,426 1 As a result of the forgoing conversions, at December 31, 2018 2019 no 1 Overall balances and conversion of Series B- 1 Series B-1 Accrued Dividends Balance – January 1, 2017 105,000 $ 131,250 Accrual of dividends – Q1 2017 - 65,625 Accrual of dividends – Q2 2017 - 65,625 Accrual of dividends – Q3 2017 - 65,625 Accrual of dividends – Q4 2017 - 65,625 Balance – December 31, 2017 105,000 393,750 Conversion into common stock – March 2018 (60,420 ) (417,084 ) Accrual of dividends – Q1 2018 - 62,268 Accrual of dividends – Q2 2018 (until final conversion) - 16,408 Conversion into common stock – May 2018 (44,580 ) (55,342 ) Balance – December 31, 2018 and December 31, 2019 - $ - 2. Holders of common stock have equal rights to receive dividends when, as and if declared by the Board of Directors, out of funds legally available therefor. Holders of common stock have one not Holders of common stock are entitled, upon liquidation of the Company, to share ratably in the net assets available for distribution, subject to the rights, if any, of holders of any preferred stock then outstanding. Shares of common stock are not no Issuances of Common Stock See Note N for common stock issued as commitment fees for notes payable during the 2019 On August 22, 2018, 1,200,000 one 0.75 $1.50 $1.50. five 45 180,000 135,000 August 22, 2018, 1,380,000 1,035,000 August 24, 2018 $2,070,000. 7% $144,900 $50,000 $1,875,100 Costs of $143,945 2018 Also see preferred stock section above for conversions of shares of preferred stock and accrued dividends into shares of common stock in 2018. Issuances to Directors, Executive Officers & Consultants During the year ended December 31, 2019, 36,897 $35,013. During the year ended December 31, 2018, 20,976 $37,532. Employees’ exercise options During 2019 2018, no Securities Purchase Agreement dated November 13, 2014 Pursuant to a Securities Purchase Agreement, dated November 13, 2014, 664,584 996,877 $1,595,000. The warrants had a term of five $3.60 February 2015. $3.60 not On August 24, 2018 $1.50 996,877 2,392,502, $3.60 $1.50 $1,288,139 2018 The warrants expired in November 2019. Securities Purchase Agreement dated September 23, 2015 On September 23, 2015, 69,445 $3.60 five The warrants have customary anti-dilution protections including a "full ratchet" anti-dilution adjustment provision which are triggered in the event the Company sells or $3.60 not On August 24, 2018 $1.50 69,445 166,668, $3.60 $1.50 $140,827 2018 In February 2020, $1.15 September 23, 2015. $0.65, September 23, 2015. first 2020, $0.65 3. The Company has issued warrants to certain creditors, investors, investment bankers and consultants. A summary of warrant activity is as follows: Total Warrants Weighted average exercise price Weighted average remaining life (in years) Aggregate intrinsic value Outstanding, as of December 31, 2017 1,398,969 3.81 2.06 Granted 1,035,000 1.50 Increase due to trigger of anti-dilution provision feature 1,492,848 1.50 Exercised — — Forfeited — — Expired (145,841 ) 6.00 Outstanding, as of December 31, 2018 3,780,976 1.59 2.05 — Granted 2,000,000 1.50 Exercised — — Forfeited — — Expired (2,392,502 ) 1.50 Outstanding, as of December 31, 2019 3,388,474 1.60 3.94 — Vested or expected to vest at December 31, 2019 3,388,474 1.60 — Exercisable at December 31, 2019 3,388,474 1.60 — |
Note R - Stock Options
Note R - Stock Options | 12 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Share-based Payment Arrangement [Text Block] | NOTE R —STOCK OPTIONS 2004 Stock Option Plan On October 12, 2004, 2004 2004 2004 not not 166,667 may not 85% may not ten 2004 2004 October 2014. 2015 Stock Option Plan On January 27, 2016, 2015 2015 666,667 may not 100 110% may not ten 2015 may may 2015 December 2025. Non-Plan Stock Options Periodically, the Company has granted options outside of the 2004 2015 Stock Option Activity Information summarizing option activity is as follows: Number of Options Weighted average Weighted average remaining Aggregate 2004 Plan 2015 Plan Non Plan Total exercise price life (in years) intrinsic value Outstanding, as of December 31, 2017 52,296 82,086 1,343,111 1,477,493 $ 2.91 Granted — 351,918 — 351,918 1.97 Exercised — — — — — Forfeited — (38,613 ) (111,253 ) (149,866 ) 2.63 Expired (18,961 ) (13,473 ) (59,097 ) (91,531 ) 3.03 Outstanding, as of December 31, 2018 33,335 381,918 1,172,761 1,588,014 $ 2.72 5.00 $ 0 Granted — 241,334 — 241,334 1.17 Exercised — — — — — Forfeited — (40,615 ) (4,168 ) (44,783 ) 2.27 Expired (2,084 ) (14,717 ) (16,040 ) (32,841 ) 3.08 Outstanding, as of December 31, 2019 31,251 567,920 1,152,553 1,751,724 $ 2.51 4.30 $ 0 Vested or expected to vest at December 31, 2019 1,594,905 $ 2.59 4.17 $ 0 Exercisable at December 31, 2019 992,747 $ 2.88 3.63 $ 0 The options outstanding and exercisable at December 31, 2019 Options Outstanding Options Exercisable Range of exercise prices Number of shares Weighted average exercise price Weighted average remaining life (in years) Number exercisable Weighted average exercise price $ 0.51 - 1.99 418,336 $ 1.52 5.78 62,712 $ 1.96 $ 2.00 - 3.50 1,164,841 2.56 4.28 761,488 2.58 $ 3.51 - 4.92 168,547 4.58 0.76 168,547 4.58 $ 0.51 - 4.92 1,751,724 992,747 The aggregate intrinsic value in the table above represents the total intrinsic value, based on the Company’s closing stock price of $0.50 December 31, 2019, December 31, 2019 0. The weighted average fair value of options granted during the years ended December 31, 2019 2018 $1.03 $1.53 December 31, 2019 2018 $ 0 December 31, 2019 2018 $891,760 $946,435, As of December 31, 2019, $731,370 0.91 |
Note S - Income Taxes
Note S - Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | NOTE S —INCOME TAXES There was no December 31, 2019 2018. The Company has deferred taxes due to income tax credits, net operating loss carryforwards, and the effect of temporary differences between the carrying values of certain assets and liabilities for financial reporting and income tax purposes. Significant components of deferred taxes are as follows at December 31: 201 9 201 8 Accrued compensation $ 84,000 $ 91,000 Accounts receivable allowance 474,000 474,000 Stock-based compensation 894,000 644,000 Basis differences in fixed assets (5,000 ) (13,000 ) Basis differences in intangible assets 62,000 50,000 Net operating loss and credit carryforwards 15,002,000 12,735,000 Valuation allowances (16,511,000 ) (13,981,000 ) $ — $ — The Company has a valuation allowance against the full amount of its net deferred taxes due to the uncertainty of realization of the deferred tax assets due to operating loss history of the Company. The Company currently provides a valuation allowance against deferred taxes when it is more likely than not not not As of December 31, 2019, $70 $55 2022 2037, $15 no 382 3.6 A reconciliation of the effective income tax rate on operations reflected in the Statements of Operations to the US Federal statutory income tax rate is presented below. 201 9 201 8 Federal statutory income tax rate 21 % 21 % Permanent differences (2 ) — Effect of net operating loss (22 ) (21 ) Effective tax rate — % — % The Company has not 2016 2019 not not December 31, 2019 2018. |
Note T - Profit Sharing Plan
Note T - Profit Sharing Plan | 12 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Retirement Benefits [Text Block] | NOTE T —PROFIT SHARING PLAN The Company has established a savings plan under section 401 one 401 may not may no December 31, 2019 2018. |
Note U - Earnings Per Share (EP
Note U - Earnings Per Share (EPS) | 12 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | NOTE U —EARNINGS PER SHARE (EPS) The Company’s basic EPS is calculated using net income (loss) available to common shareholders and the weighted-average number of shares outstanding during the reporting period. Diluted EPS includes the effect from potential issuance of common stock, such as stock issuable pursuant to the exercise of stock options and warrants and the assumed conversion of preferred stock. The reconciliation of the numerator of the basic and diluted EPS calculations, due to the inclusion of preferred stock dividends was as follows for the following fiscal years ended December 31: 201 9 201 8 Basic Numerator: Net Loss $ (14,588,700 ) $ (6,868,875 ) Deemed dividend from trigger of anti-dilution provision feature - (1,428,966 ) Convertible preferred stock dividends - (198,033 ) Net loss available to common stockholders (basic and diluted EPS) $ (14,588,700 ) $ (8,495,874 ) The following table summarizes the weighted average securities that were excluded from the diluted per share calculation because the effect of including these potential shares was antidilutive. Years ended December 31, 201 9 201 8 Stock options 945 83 Warrants - 697,879 Potentially dilutive securities 945 697,962 Items excluded from the diluted per share calculation because the exercise price was greater than the average market price of the common shares: Years ended December 31, 201 9 201 8 Stock options 1,749,724 1,583,014 Warrants 3,388,474 186,806 Convertible notes 1,458,740 - Preferred stock - 1,426,756 Total 6,596,938 3,196,576 |
Note V - Subsequent Events
Note V - Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | NOTE V—SUBSEQUENT EVENTS Refer to Note N for subsequent events related to convertible notes in effect as of December 31, 2019. On January 13, 2020, $157,000 June 13, 2020 $1.50 10% 30%. 650,000 $75,000 50,000 On February 13, 2020, $126,000 July 13, 2020 $1.15 10% 30%. 550,000 $57,500 50,000 50,000 On March 25, 2020, $5,000,000 $20,000,000 first 20%, $500,000 500,000 $20,000,000 first five 100,000 $1.50 Warrants $1,000,000 $20,000,000 $25,000,000 no 2,000,000 500,000 On March 30, 2020, 972,000 $1.50 $1,458,000. On April 2, 2020, 6,850 5,000 three On April 20, 2020, $340,000 eight six not 1% November 20, 2022. On May 6, 2020, $2,415,000 $2,100,000. five $268,333 seven twelfth $1.16 $133,333 114,943 $1.16. 1,900,000 $1.16 7% On May 12, 2020, 7,077 Subsequent to year-end, due to the effects of the worldwide coronavirus pandemic, the Company is closely monitoring its operations, liquidity, and capital resources. We are actively working to minimize the current and future impact of this unprecedented situation. As of the date of issuance of these financial statements, the full impact to the Company’s financial position is not The Company has reviewed subsequent events through the date of this filing. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Going Concern and Basis of Presentation The Company has incurred significant losses to date, and at December 31, 2019, $90 December 31, 2019, $79,000, $324,000 December 31, 2018. As discussed below, the Company has financed itself in the past through access to the capital markets by issuing secured and convertible debt securities, convertible preferred stock, common stock, and through factoring receivables. The Company currently requires approximately $525,000 If the Company is unable to generate sufficient revenue to meet its goals, it will need to obtain additional third No not The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP"), which contemplate continuation of the Company as a going concern, and assumes continuity of operations, realization of assets and the satisfaction of liabilities and commitments in the normal course of business. The matters described in the preceding paragraphs raise substantial doubt about the Company’s ability to continue as a going concern. Recoverability of a major portion of the recorded asset amounts shown in the accompanying balance sheet is dependent upon the Company’s ability to meet its financing requirements on a continuing basis, and become profitable in its future operations. The accompanying consolidated financial statements do not Reclassification Reclassifications occurred to certain prior year amounts in order to conform to the current year presentation to segregate cost of sales for licenses and hardware. The reclassifications have no |
Consolidation, Policy [Policy Text Block] | 1. Principles of Consolidation The accompanying consolidated financial statements include the accounts of BIO-key International, Inc. and its wholly-owned subsidiaries (collectively, the “Company”). Intercompany accounts and transactions have been eliminated in consolidation. Reclassification Reclassifications occurred to certain prior year amounts in order to conform to the current year presentation to segregate cost of sales for licenses and hardware. The reclassifications have no |
Use of Estimates, Policy [Policy Text Block] | 2. Use of Estimates Our consolidated financial statements are prepared in accordance with GAAP as set forth in the Financial Accounting Standards Board’s (FASB) Accounting Standards Codification (ASC) and consider the various staff accounting bulletins and other applicable guidance issued by the U.S. Securities and Exchange Commission (SEC). These accounting principles require us to make certain estimates, judgments and assumptions. The Company believes that the estimates, judgments and assumptions upon which it relies are reasonable based upon information available to us at the time that these estimates, judgments and assumptions are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities as of the date of the financial statements as well as the reported amounts of revenues and expenses during the periods presented. Certain significant accounting policies that contain subjective management estimates and assumptions include those related to revenue recognition, accounts receivable, inventory, intangible assets and long-lived assets, and income taxes. To the extent there are material differences between these estimates, judgments or assumptions and actual results, its consolidated financial statements will be affected. In many cases, the accounting treatment of a particular transaction is specifically dictated by GAAP and does not not |
Revenue from Contract with Customer [Policy Text Block] | 3. Revenue Recognition The Company adopted ASC Topic 606 January 1, 2018 not 606, five ● Identify the contract with a customer ● Identify the performance obligations in the contract ● Determine the transaction price ● Allocate the transaction price to performance obligations in the contract ● Recognize revenue when or as the Company satisfies a performance obligation All of the Company's performance obligations, and associated revenue, are generally transferred to customers at a point in time, with the exception of support and maintenance, and professional services, which are generally transferred to the customer over time. Software licenses Software license revenue consist of fees for perpetual and SaaS software licenses for one Hardware Hardware revenue consists of fees for associated equipment sold with or without a software license arrangement, such as servers, locks and fingerprint readers. Customers are not third may Support and Maintenance Support and Maintenance revenue consists of fees for unspecified upgrades, telephone assistance and bug fixes. The Company satisfies its Support and Maintenance performance obligation by providing “stand-ready” assistance as required over the contract period. The Company records deferred revenue (contract liability) at time of prepayment until the contracts term occurs. Revenue is recognized over time on a ratable basis over the contract term. Support and Maintenance contracts are up to one Professional Services Professional services revenues consist primarily of fees for deployment and optimization services, as well as training. The majority of the Company’s consulting contracts are billed on a time and materials basis, and revenue is recognized based on the amount billable to the customer in accordance with practical expedient ASC 606 10 55 18. Contracts with Multiple Performance Obligations Some contracts with customers contain multiple performance obligations. For these contracts, the Company accounts for individual performance obligations separately if they are distinct. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. The standalone selling prices are determined based on overall pricing objectives, taking into consideration market conditions and other factors, including the value of the contracts, the cloud applications sold, customer demographics, geographic locations, and the number and types of users within the contracts. The Company considered several factors in determining that control transfers to the customer upon shipment of hardware and availability of download of software. These factors include that legal title transfers to the customer, the Company has a present right to payment, and the customer has assumed the risks and rewards of ownership. Accounts receivable from customers are typically due within 30 not Costs to Obtain and Fulfill a Contract Costs to obtain and fulfill a contract are predominantly sales commissions earned by the sales force and are considered incremental and recoverable costs of obtaining a contract with a customer. These costs are deferred and then amortized over a period of benefit determined to be four |
Cash and Cash Equivalents, Policy [Policy Text Block] | 4. Cash Equivalents Cash equivalents consist of liquid investments with original maturities of three December 31, 2019 2018, |
Receivable [Policy Text Block] | 5. Accounts Receivable Accounts receivable are carried at original amount less an estimate made for doubtful receivables based on a review of all outstanding amounts on a monthly basis. Management determines the allowance for doubtful receivables by regularly evaluating individual customer receivables and considering a customer’s financial condition, credit history, and current economic conditions. Accounts receivable are written off when deemed uncollectible. As a result of the payment delays for a large customer, the Company has reserved $1,720,000 December 31, 2019 2018, 100% December 2018. 606 $1.1 2018. December 31, 2019, second $555,555 $555,555 March 2019, not Accounts receivable at December 31, 2019 2018 December 31, 201 9 201 8 Accounts receivable - current $ 139,785 $ 1,587,817 Accounts receivable - non current 1,720,000 1,720,000 1,859,785 3,307,817 Allowance for doubtful accounts - current (13,785 ) (13,785 ) Allowance for doubtful accounts - non current (1,720,000 ) (1,720,000 ) (1,733,785 ) (1,733,785 ) Accounts receivable, net of allowances for doubtful accounts $ 126,000 $ 1,574,032 The allowance for doubtful accounts for the years ended December 31, 2019 2018 Balance at Beginning of Year Charged to Costs and Expenses Deductions From Reserves Balance at End of Year Year Ended December 31, 201 9 Allowance for Doubtful Accounts $ 1,733,785 $ - $ - $ 1,733,785 Year Ended December 31, 201 8 Allowance for Doubtful Accounts $ 1,013,785 $ 720,000 $ - $ 1,733,785 Bad debt expenses (if any) are recorded in selling, general, and administrative expense. |
Software License Right, Policy [Policy Text Block] | 6. Software License Rights Software license rights acquired for re-sale to end users are recorded as assets when purchased and are stated at the lower of cost or estimated net realizable value. The cost of the software license rights was initially allocated pro-rata to the maximum number of resalable end-user licenses in the rights contract. Through December 31, 2018, 1 2 ten 3 January 1, 2019, Management re-evaluates the total sub-licenses it expects to sell during the proceeding twelve The rights are also evaluated by management on a periodic basis to determine if estimated future net revenues, on a per sub-license basis, support the recorded basis of each license. If the estimated net revenues are less than the current carrying value of the capitalized software license rights, the Company will reduce the rights to their net realizable value. |
Property, Plant and Equipment, Policy [Policy Text Block] | 7. Equipment and Leasehold Improvements, Intangible Assets and Depreciation and Amortization Equipment and leasehold improvements are stated at cost. Depreciation is provided for in amounts sufficient to relate the cost of depreciable assets to operations over the estimated service lives, principally using straight-line methods. Leasehold improvements are amortized over the shorter of the life of the improvement or the lease term, using the straight-line method. The estimated useful lives used to compute depreciation and amortization for financial reporting purposes are as follows: Years Equipment and leasehold improvements Equipment (years) 3 - 5 Furniture and fixtures (years) 3 - 5 Software (years) 3 Leasehold improvements life or lease term Intangible assets consist of patents. Patent costs are capitalized until patents are awarded. Upon award, such costs are amortized using the straight-line method over their respective economic lives. If a patent is denied, all costs are charged to operations in that year. |
Impairment or Disposal of Long-Lived Assets, Including Intangible Assets, Policy [Policy Text Block] | 8. Impairment or Disposal of Long Lived Assets, including Intangible Assets The Company reviews long-lived assets, including intangible assets subject to amortization, whenever events or changes in circumstances indicate that the carrying amount of such an asset may not may 2019 |
Advertising Cost [Policy Text Block] | 9. Advertising Expense The Company expenses the costs of advertising as incurred. Advertising expenses for 2019 2018 $317,000 $309,000, |
Deferred Revenue, Policy [Policy Text Block] | 10. Deferred Revenue Deferred revenue includes customer advances and amounts that have been paid by customer for which the contractual maintenance terms have not 12 |
Research and Development Expense, Policy [Policy Text Block] | 11. Research and Development Expenditures Research and development expenses include costs directly attributable to the conduct of research and development programs primarily related to the development of our software products and improving the efficiency and capabilities of our existing software. Such costs include salaries, payroll taxes, employee benefit costs, materials, supplies, depreciation on research equipment, services provided by outside contractors, and the allocable portions of facility costs, such as rent, utilities, insurance, repairs and maintenance, depreciation and general support services. All costs associated with research and development are expensed as incurred. |
Earnings Per Share, Policy [Policy Text Block] | 12. Earnings Per Share of Common Stock (“EPS”) The Company’s EPS is calculated by dividing net income (loss) applicable to common stockholders by the weighted-average number of common shares outstanding during the reporting period. Diluted EPS includes the effect from potential issuances of common stock, such as stock issuable pursuant to the conversion of preferred stock, exercise of stock options and warrants, when the effect of their inclusion is dilutive. See Note T - Earnings Per Share “EPS” for additional information. |
Share-based Payment Arrangement [Policy Text Block] | 13. Accounting for Stock-Based Compensation The Company accounts for share based compensation in accordance with the provisions of ASC 718 10, three four not may The following table presents share-based compensation expenses included in the Company’s consolidated statements of operations: Year ended December 31, 201 9 201 8 Selling, general and administrative $ 828,981 $ 855,125 Research, development and engineering 118,739 125,099 $ 947,720 $ 980,224 Valuation Assumptions for Stock Options For 2019 2018, 241,334 351,918 Year ended December 31, 201 9 201 8 Weighted average Risk free interest rate 2.33 % 2.70 % Expected life of options (in years) 4.50 4.50 Expected dividends 0 % 0 % Weighted average Volatility of stock price 84 % 143 % The stock volatility for each grant is determined based on the review of the experience of the weighted average of historical daily price changes of the Company’s common stock over the expected option term. The expected term was determined using the simplified method for estimating expected option life, which qualify as “plain-vanilla” options; and the risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods corresponding with the expected life of the option. |
Derivatives, Policy [Policy Text Block] | 14. Derivative Liabilities In connection with the issuances of equity instruments or debt, the Company may may may may July 2017, 2017 11, 260 480 815 2017 11, not no |
Income Tax, Policy [Policy Text Block] | 15. Income Taxes The provision for, or benefit from, income taxes includes deferred taxes resulting from the temporary differences in income for financial and tax purposes using the liability method. Such temporary differences result primarily from the differences in the carrying value of assets and liabilities. Future realization of deferred income tax assets requires sufficient taxable income within the carryback, carryforward period available under tax law. The Company evaluates, on a quarterly basis whether, based on all available evidence, if it is probable that the deferred income tax assets are realizable. Valuation allowances are established when it is more likely than not not 740 10, may The Company accounts for uncertain tax provisions in accordance with ASC 740 10 05, |
Lessee, Leases [Policy Text Block] | 16 . Leases In February 2016, 2016 02, 842 842 12 January 1, 2019 842 no not 842 no not The Company elected the package of practical expedients as permitted under the transition guidance, which allowed us: ( 1 2 not 3 not In accordance with ASC 842, one not one 842 20 25 2. not Lease liabilities and their corresponding ROU assets are recorded based on the present value of lease payments over the expected lease term. The implicit rate within our operating leases are generally not An option to extend the lease is considered in connection with determining the ROU asset and lease liability when it is reasonably certain we will exercise that option. An option to terminate is considered unless it is reasonably certain we will not For periods prior to the adoption of ASC 842, 842 no The impact of the adoption of ASC 842 As reported Adoption of ASC Balance December 31, 2018 842 - increase (decrease) January 1, 2019 Operating lease right-of-assets $ - $ 602,937 $ 602,937 Prepaid expenses and other $ 150,811 $ (12,595 ) $ 138,216 Total assets $ 11,692,332 $ 590,342 $ 12,282,674 Operating lease liabilities, current portion $ - $ 135,519 $ 135,519 Operating lease liabilities, net of current portion $ - $ 454,823 $ 454,823 Total liabilities $ 1,226,110 $ 590,342 $ 1,816,452 Total liabilities and stockholders’ equity $ 11,692,332 $ 590,342 $ 12,282,674 In the third 2019, $ 116,875 |
New Accounting Pronouncements, Policy [Policy Text Block] | 16. Recent Accounting Pronouncements In August 2018, No. 2018 15, 2018 15” 2018 15 December 15, 2019, 2018 15 2018 15 not In June 2016, 2016 13, 326 2016 13, not 2016 13 2016 13 no not may not 2016 13. 2016 13 December 15, 2022 2016 13 Management does not not Reclassification Reclassifications occurred to certain prior year amounts in order to conform to the current year presentation to segregate cost of sales for licenses and hardware. The reclassifications have no |
Note A - The Company and Summ_2
Note A - The Company and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Notes Tables | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | December 31, 201 9 201 8 Accounts receivable - current $ 139,785 $ 1,587,817 Accounts receivable - non current 1,720,000 1,720,000 1,859,785 3,307,817 Allowance for doubtful accounts - current (13,785 ) (13,785 ) Allowance for doubtful accounts - non current (1,720,000 ) (1,720,000 ) (1,733,785 ) (1,733,785 ) Accounts receivable, net of allowances for doubtful accounts $ 126,000 $ 1,574,032 |
Summary of Valuation Allowance [Table Text Block] | Balance at Beginning of Year Charged to Costs and Expenses Deductions From Reserves Balance at End of Year Year Ended December 31, 201 9 Allowance for Doubtful Accounts $ 1,733,785 $ - $ - $ 1,733,785 Year Ended December 31, 201 8 Allowance for Doubtful Accounts $ 1,013,785 $ 720,000 $ - $ 1,733,785 |
Useful Lives of Property Plan and Equipment [Table Text Block] | Years Equipment and leasehold improvements Equipment (years) 3 - 5 Furniture and fixtures (years) 3 - 5 Software (years) 3 Leasehold improvements life or lease term |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block] | Year ended December 31, 201 9 201 8 Selling, general and administrative $ 828,981 $ 855,125 Research, development and engineering 118,739 125,099 $ 947,720 $ 980,224 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Year ended December 31, 201 9 201 8 Weighted average Risk free interest rate 2.33 % 2.70 % Expected life of options (in years) 4.50 4.50 Expected dividends 0 % 0 % Weighted average Volatility of stock price 84 % 143 % |
Accounting Standards Update and Change in Accounting Principle [Table Text Block] | As reported Adoption of ASC Balance December 31, 2018 842 - increase (decrease) January 1, 2019 Operating lease right-of-assets $ - $ 602,937 $ 602,937 Prepaid expenses and other $ 150,811 $ (12,595 ) $ 138,216 Total assets $ 11,692,332 $ 590,342 $ 12,282,674 Operating lease liabilities, current portion $ - $ 135,519 $ 135,519 Operating lease liabilities, net of current portion $ - $ 454,823 $ 454,823 Total liabilities $ 1,226,110 $ 590,342 $ 1,816,452 Total liabilities and stockholders’ equity $ 11,692,332 $ 590,342 $ 12,282,674 |
Note B - Revenue From Contrac_2
Note B - Revenue From Contracts With Customers (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | North America South America EMEA* Asia December 31, 201 9 License fees $ 208,827 $ 46,717 $ 117,401 $ 69,704 $ 442,649 Hardware 388,938 12,636 342,304 155,756 899,634 Support and Maintenance 780,288 8,514 96,911 18,502 904,215 Professional services 14,030 - 3,000 4,000 21,030 Total Revenues $ 1,392,083 $ 67,867 $ 559,616 $ 247,962 $ 2,267,528 North America South America EMEA* Asia December 31, 201 8 License fees $ 318,271 $ 32,000 $ 278,516 $ 1,111,110 $ 1,739,897 Hardware 439,480 53,200 477,674 321,715 1,292,069 Support and Maintenance 805,800 665 60,820 27,321 894,606 Professional services 115,970 - 2,000 - 117,970 Total Revenues $ 1,679,521 $ 85,865 $ 819,010 $ 1,460,146 $ 4,044,542 |
Note C - Factoring (Tables)
Note C - Factoring (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Notes Tables | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | December 31, 201 9 201 8 Accounts receivable - current $ 139,785 $ 1,587,817 Accounts receivable - non current 1,720,000 1,720,000 1,859,785 3,307,817 Allowance for doubtful accounts - current (13,785 ) (13,785 ) Allowance for doubtful accounts - non current (1,720,000 ) (1,720,000 ) (1,733,785 ) (1,733,785 ) Accounts receivable, net of allowances for doubtful accounts $ 126,000 $ 1,574,032 |
Factoring Fees [Table Text Block] | Years Ended December 31, 201 9 201 8 Factoring fees $ 203,950 $ 186,845 |
Factored Accounts Receivable [Member] | |
Notes Tables | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Original Invoice Value Factored Amount Factored Balance due Year Ended December 31, 201 9 Factored accounts receivable $ 233,005 $ 122,064 $ 110,941 Year Ended December 31, 2018 Factored accounts receivable $ 221,120 $ 164,438 $ 56,682 |
Note F - Inventory (Tables)
Note F - Inventory (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | 201 9 201 8 Finished goods 287,761 496,358 Fabricated assemblies 141,358 502,471 Total inventory $ 429,119 $ 998,829 |
Note G - Resalable Software L_2
Note G - Resalable Software Licenses Rights (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Notes Tables | |
Software License Rights [Table Text Block] | 201 9 201 8 Current software license rights $ - $ 1,125,000 Non-current software license rights 73,802 6,790,610 Total software license rights $ 73,802 $ 7,915,610 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Years ending December 31 2020 $ 18,000 2021 $ 18,000 2022 $ 18,000 2023 $ 18,000 2024 $ 1,802 |
Note I - Equipment and Leaseh_2
Note I - Equipment and Leasehold Improvements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | 201 9 201 8 Equipment $ 648,286 $ 619,533 Furniture and fixtures 164,079 164,079 Software 32,045 32,045 Leasehold improvements 23,403 23,403 867,813 839,060 Less accumulated depreciation and amortization (772,304 ) (690,452 ) Total $ 95,509 $ 148,608 |
Note J - Intangible Assets (Tab
Note J - Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Notes Tables | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | 2019 2018 Gross Carrying Amount Accumulated Amortization Write-offs Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Patents and patents pending $ 380,080 $ (210,694 ) $ (15,000 ) $ 154,386 $ 378,344 $ (182,438 ) $ 195,906 |
Note K - Accrued Liabilities (T
Note K - Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | 201 9 201 8 Compensation $ 193,823 $ 224,135 Compensated absences 155,962 154,169 Accrued legal and accounting fees 105,933 77,133 Sales tax payable 17,248 9,436 Factoring fees 31,458 19,000 Other 182,461 64,359 Total $ 686,885 $ 548,232 |
Note N - Convertible Notes Pa_2
Note N - Convertible Notes Payable (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Notes Tables | |
Convertible Debt [Table Text Block] | Principal amount $ 3,060,000 Less unamortized debt discount (574,330 ) Less unamortized debt issuance costs (230,216 ) Notes payable, net of unamortized debt discount and debt issuance costs $ 2,255,454 |
Schedule of Interest Expense [Table Text Block] | April 4, 2019 debenture interest expense $ 55,000 April 4, 2019 debenture discount amortized 40,000 April 4, 2019 debenture deferred costs amortized 175,000 June 14, 2019 convertible note interest expense 17,822 June 14, 2019 convertible note deferred costs amortized 37,000 July 10, 2019 convertible note discount amortized 245,083 July 10, 2019 convertible note deferred costs amortized 212,980 July 10, 2019 warrant valuation (debt discount) amortization 286,249 Total $ 1,069,134 |
Note O - Leases (Tables)
Note O - Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Notes Tables | |
Lessee, Operating Lease, Costs, Assets and Liabilities [Table Text Block] | Year ended December 31, 2019 Lease cost Operating lease cost $ 186,246 Short-term lease cost 41,535 Total lease cost $ 227,781 Balance sheet information Operating right-of-use assets $ 566,479 Operating lease liabilities, current portion $ 170,560 Operating lease liabilities, non-current portion 390,466 Total operating lease liabilities $ 561,026 Weighted average remaining lease term (in years) – operating leases 3.33 Weighted average discount rate – operating leases 5.50 % |
Lessee, Operating Lease, Supplemental Cash Flow Information [Table Text Block] | Cash paid for amounts included in the measurement of operating lease liabilities $ 179,105 |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | 2020 $ 197,724 2021 170,853 2022 160,817 2023 89,226 Total future lease payments $ 618,620 Less: imputed interest (57,594 ) Total $ 561,026 |
Note Q - Equity (Tables)
Note Q - Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Notes Tables | |
Schedule of Preferred Stock and Accrued Dividends [Table Text Block] | Series A-1 Accrued Dividends Balance – January 1, 2017 90,000 $ 270,000 Accrual of dividends – Q1 2017 - 135,000 Accrual of dividends – Q2 2017 - 135,000 Accrual of dividends – Q3 2017 - 135,000 Conversion into common stock – September 2017 - (540,000 ) Conversion into common stock – October 2017 (27,404 ) - Accrual of dividends – Q4 2017 - 101,658 Balance – December 31, 2017 62,596 $ 236,658 Accrual of dividends – Q1 2018 - 93,894 Conversion into common stock – April 2018 (39,088 ) (330,552 ) Accrual of dividends – Q2 2018 (until final conversion) - 25,463 Conversion into common stock – May 2018 (23,508 ) (25,463 ) Balance – December 31, 2018 and December 31, 2019 - $ - Series B-1 Accrued Dividends Balance – January 1, 2017 105,000 $ 131,250 Accrual of dividends – Q1 2017 - 65,625 Accrual of dividends – Q2 2017 - 65,625 Accrual of dividends – Q3 2017 - 65,625 Accrual of dividends – Q4 2017 - 65,625 Balance – December 31, 2017 105,000 393,750 Conversion into common stock – March 2018 (60,420 ) (417,084 ) Accrual of dividends – Q1 2018 - 62,268 Accrual of dividends – Q2 2018 (until final conversion) - 16,408 Conversion into common stock – May 2018 (44,580 ) (55,342 ) Balance – December 31, 2018 and December 31, 2019 - $ - |
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block] | Total Warrants Weighted average exercise price Weighted average remaining life (in years) Aggregate intrinsic value Outstanding, as of December 31, 2017 1,398,969 3.81 2.06 Granted 1,035,000 1.50 Increase due to trigger of anti-dilution provision feature 1,492,848 1.50 Exercised — — Forfeited — — Expired (145,841 ) 6.00 Outstanding, as of December 31, 2018 3,780,976 1.59 2.05 — Granted 2,000,000 1.50 Exercised — — Forfeited — — Expired (2,392,502 ) 1.50 Outstanding, as of December 31, 2019 3,388,474 1.60 3.94 — Vested or expected to vest at December 31, 2019 3,388,474 1.60 — Exercisable at December 31, 2019 3,388,474 1.60 — |
Note R - Stock Options (Tables)
Note R - Stock Options (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Notes Tables | |
Share-based Payment Arrangement, Option, Activity [Table Text Block] | Number of Options Weighted average Weighted average remaining Aggregate 2004 Plan 2015 Plan Non Plan Total exercise price life (in years) intrinsic value Outstanding, as of December 31, 2017 52,296 82,086 1,343,111 1,477,493 $ 2.91 Granted — 351,918 — 351,918 1.97 Exercised — — — — — Forfeited — (38,613 ) (111,253 ) (149,866 ) 2.63 Expired (18,961 ) (13,473 ) (59,097 ) (91,531 ) 3.03 Outstanding, as of December 31, 2018 33,335 381,918 1,172,761 1,588,014 $ 2.72 5.00 $ 0 Granted — 241,334 — 241,334 1.17 Exercised — — — — — Forfeited — (40,615 ) (4,168 ) (44,783 ) 2.27 Expired (2,084 ) (14,717 ) (16,040 ) (32,841 ) 3.08 Outstanding, as of December 31, 2019 31,251 567,920 1,152,553 1,751,724 $ 2.51 4.30 $ 0 Vested or expected to vest at December 31, 2019 1,594,905 $ 2.59 4.17 $ 0 Exercisable at December 31, 2019 992,747 $ 2.88 3.63 $ 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable [Table Text Block] | Options Outstanding Options Exercisable Range of exercise prices Number of shares Weighted average exercise price Weighted average remaining life (in years) Number exercisable Weighted average exercise price $ 0.51 - 1.99 418,336 $ 1.52 5.78 62,712 $ 1.96 $ 2.00 - 3.50 1,164,841 2.56 4.28 761,488 2.58 $ 3.51 - 4.92 168,547 4.58 0.76 168,547 4.58 $ 0.51 - 4.92 1,751,724 992,747 |
Note S - Income Taxes (Tables)
Note S - Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Notes Tables | |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | 201 9 201 8 Accrued compensation $ 84,000 $ 91,000 Accounts receivable allowance 474,000 474,000 Stock-based compensation 894,000 644,000 Basis differences in fixed assets (5,000 ) (13,000 ) Basis differences in intangible assets 62,000 50,000 Net operating loss and credit carryforwards 15,002,000 12,735,000 Valuation allowances (16,511,000 ) (13,981,000 ) $ — $ — |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | 201 9 201 8 Federal statutory income tax rate 21 % 21 % Permanent differences (2 ) — Effect of net operating loss (22 ) (21 ) Effective tax rate — % — % |
Note U - Earnings Per Share (_2
Note U - Earnings Per Share (EPS) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | 201 9 201 8 Basic Numerator: Net Loss $ (14,588,700 ) $ (6,868,875 ) Deemed dividend from trigger of anti-dilution provision feature - (1,428,966 ) Convertible preferred stock dividends - (198,033 ) Net loss available to common stockholders (basic and diluted EPS) $ (14,588,700 ) $ (8,495,874 ) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | Years ended December 31, 201 9 201 8 Stock options 945 83 Warrants - 697,879 Potentially dilutive securities 945 697,962 Years ended December 31, 201 9 201 8 Stock options 1,749,724 1,583,014 Warrants 3,388,474 186,806 Convertible notes 1,458,740 - Preferred stock - 1,426,756 Total 6,596,938 3,196,576 |
Note A - The Company and Summ_3
Note A - The Company and Summary of Significant Accounting Policies (Details Textual) - USD ($) | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2017 |
Retained Earnings (Accumulated Deficit), Ending Balance | $ (89,723,016) | $ (75,134,316) | ||||
Cash and Cash Equivalents, at Carrying Value, Ending Balance | 79,013 | 323,943 | $ 288,721 | |||
Operational Costs Per Month | $ 525,000 | |||||
Capitalized Contract Cost, Amortization Period (Year) | 4 years | |||||
Accounts Receivable, Allowance for Credit Loss, Noncurrent | $ 1,720,000 | $ 1,720,000 | ||||
Percentage of Remaining Balance Owned Reserved | 100.00% | 100.00% | ||||
Revenue from Contract with Customer, Including Assessed Tax | $ 2,267,528 | $ 4,044,542 | ||||
Advertising Expense | $ 317,000 | $ 309,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares) | 241,334 | 351,918 | ||||
Operating Lease, Right-of-Use Asset | $ 566,479 | $ 0 | $ 116,875 | $ 602,937 | ||
Operating Lease, Liability, Total | $ 561,026 | $ 116,875 | ||||
Minimum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 3 years | |||||
Maximum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 4 years | |||||
License [Member] | ||||||
Revenue from Contract with Customer, Including Assessed Tax | $ 442,649 | 1,739,897 | ||||
License [Member] | CHINA | ||||||
Revenue from Contract with Customer, Including Assessed Tax | $ 1,100,000 | |||||
Receivables, Net, Current, Total | $ 555,555 | |||||
Accounts Receivable, Allowance for Credit Loss, Ending Balance | $ 555,555 |
Note A - The Company and Summ_4
Note A - The Company and Summary of Significant Accounting Policies - Summary of Accounts Receivable (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts receivable - current | $ 139,785 | $ 1,587,817 |
Accounts receivable - non current | 1,720,000 | 1,720,000 |
Accounts Receivable, before Allowance for Credit Loss | 1,859,785 | 3,307,817 |
Allowance for doubtful accounts - current | (13,785) | (13,785) |
Allowance for doubtful accounts - non current | (1,720,000) | (1,720,000) |
Accounts Receivable, Allowance for Credit Loss, Ending Balance | (1,733,785) | (1,733,785) |
Accounts receivable, net of allowances for doubtful accounts | $ 126,000 | $ 1,574,032 |
Note A - The Company and Summ_5
Note A - The Company and Summary of Significant Accounting Policies - Allowance for Doubtful Accounts (Details) - SEC Schedule, 12-09, Allowance, Credit Loss [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Balance at beginning of year | $ 1,733,785 | $ 1,013,785 |
Charges to costs and expenses | 720,000 | |
Deductions from reserves | ||
Balance at end of year | $ 1,733,785 | $ 1,733,785 |
Note A - The Company and Summ_6
Note A - The Company and Summary of Significant Accounting Policies - Estimated Useful Lives for Depreciation and Amortization (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Equipment [Member] | Minimum [Member] | |
Property, Plant, and Equipment (Year) | 3 years |
Equipment [Member] | Maximum [Member] | |
Property, Plant, and Equipment (Year) | 5 years |
Furniture and Fixtures [Member] | Minimum [Member] | |
Property, Plant, and Equipment (Year) | 3 years |
Furniture and Fixtures [Member] | Maximum [Member] | |
Property, Plant, and Equipment (Year) | 5 years |
Software Development [Member] | |
Property, Plant, and Equipment (Year) | 3 years |
Leasehold Improvements [Member] | |
Property, Plant, and Equipment, useful life | life or lease term |
Note A - The Company and Summ_7
Note A - The Company and Summary of Significant Accounting Policies - Share-based Compensation Expenses for Continuing Operations (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based compensation expense | $ 947,720 | $ 980,224 |
Selling, General and Administrative Expenses [Member] | ||
Share-based compensation expense | 828,981 | 855,125 |
Research and Development Expense [Member] | ||
Share-based compensation expense | $ 118,739 | $ 125,099 |
Note A - The Company and Summ_8
Note A - The Company and Summary of Significant Accounting Policies - Valuation Assumptions for Stock Options (Details) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Weighted average Risk free interest rate | 2.33% | 2.70% |
Expected life of options (Year) | 4 years 182 days | 4 years 182 days |
Expected dividends | 0.00% | 0.00% |
Weighted average Volatility of stock price | 84.00% | 143.00% |
Note A - The Company and Summ_9
Note A - The Company and Summary of Significant Accounting Policies - Adoption of ASC 842 Impact (Details) - USD ($) | Dec. 31, 2019 | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Operating Lease, Right-of-Use Asset | $ 566,479 | $ 116,875 | $ 602,937 | $ 0 |
Prepaid expenses and other | 108,397 | 138,216 | 150,811 | |
Total assets | 2,496,698 | 12,282,674 | 11,692,332 | |
Operating lease liabilities, current portion | 170,560 | 135,519 | 0 | |
Operating lease liabilities, net of current portion | 390,466 | 454,823 | 0 | |
Total liabilities | 4,781,871 | 1,816,452 | 1,226,110 | |
Total liabilities and stockholders’ equity | $ 2,496,698 | 12,282,674 | $ 11,692,332 | |
Accounting Standards Update 2016-02 [Member] | ||||
Operating Lease, Right-of-Use Asset | 602,937 | |||
Prepaid expenses and other | (12,595) | |||
Total assets | 590,342 | |||
Operating lease liabilities, current portion | 135,519 | |||
Operating lease liabilities, net of current portion | 454,823 | |||
Total liabilities | 590,342 | |||
Total liabilities and stockholders’ equity | $ 590,342 |
Note B - Revenue From Contrac_3
Note B - Revenue From Contracts With Customers (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Contract with Customer, Liability, Revenue Recognized | $ 147,000 | |
Contract with Customer, Liability, Total | $ 359,212 | $ 196,609 |
Note B - Revenue From Contrac_4
Note B - Revenue From Contracts With Customers - Disaggregation of Revenue (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Revenue from Contract with Customer, Including Assessed Tax | $ 2,267,528 | $ 4,044,542 | |
North America [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 1,392,083 | 1,679,521 | |
South America [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 67,867 | 85,865 | |
EMEA [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | [1] | 559,616 | 819,010 |
Asia [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 247,962 | 1,460,146 | |
License [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 442,649 | 1,739,897 | |
License [Member] | North America [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 208,827 | 318,271 | |
License [Member] | South America [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 46,717 | 32,000 | |
License [Member] | EMEA [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | [1] | 117,401 | 278,516 |
License [Member] | Asia [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 69,704 | 1,111,110 | |
Hardware [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 899,634 | 1,292,069 | |
Hardware [Member] | North America [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 388,938 | 439,480 | |
Hardware [Member] | South America [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 12,636 | 53,200 | |
Hardware [Member] | EMEA [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | [1] | 342,304 | 477,674 |
Hardware [Member] | Asia [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 155,756 | 321,715 | |
Maintenance [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 904,215 | 894,606 | |
Maintenance [Member] | North America [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 780,288 | 805,800 | |
Maintenance [Member] | South America [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 8,514 | 665 | |
Maintenance [Member] | EMEA [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 96,911 | 60,820 | |
Maintenance [Member] | Asia [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 18,502 | 27,321 | |
Professional Services [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 21,030 | 117,970 | |
Professional Services [Member] | North America [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 14,030 | 115,970 | |
Professional Services [Member] | South America [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | |||
Professional Services [Member] | EMEA [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 3,000 | 2,000 | |
Professional Services [Member] | Asia [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | $ 4,000 | ||
[1] | EMEA - Europe, Middle East, Africa |
Note C - Factoring (Details Tex
Note C - Factoring (Details Textual) | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Factoring Arrangement, Minimum Amount of Accounts Receivable Per Quarter | $ 150,000 |
Minimum [Member] | |
Factoring Fees Percent | 2.75% |
Maximum [Member] | |
Factoring Fees Percent | 15.00% |
Geographic Distribution, Foreign [Member] | |
Percentage Of Accounts Receivable Remitted By Factor | 35.00% |
Geographic Distribution, Domestic [Member] | |
Percentage Of Accounts Receivable Remitted By Factor | 75.00% |
Note C - Factoring - Due From F
Note C - Factoring - Due From Factor (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Original invoice value | $ 233,005 | $ 221,120 |
Factored amount | 122,064 | 164,438 |
Factored balance due | $ 110,941 | $ 56,682 |
Note C - Factoring - Fees (Deta
Note C - Factoring - Fees (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Factoring fees | $ 203,950 | $ 186,845 |
Note E - Concentration of Risk
Note E - Concentration of Risk (Details Textual) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Cash, Uninsured Amount | $ 0 | $ 0 |
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | ||
Concentration Risk, Number of Major Customers | 2 | 3 |
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Customer A [Member] | ||
Concentration Risk, Percentage | 22.00% | 27.00% |
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Customer B [Member] | ||
Concentration Risk, Percentage | 14.00% | 14.00% |
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Customer C [Member] | ||
Concentration Risk, Percentage | 13.00% | |
Customer Concentration Risk [Member] | Non-current Accounts Receivable [Member] | ||
Concentration Risk, Number of Major Customers | 3 | 1 |
Concentration Risk, Percentage | 70.00% | |
Customer Concentration Risk [Member] | Non-current Accounts Receivable [Member] | Customer A [Member] | ||
Concentration Risk, Percentage | 18.00% | |
Customer Concentration Risk [Member] | Non-current Accounts Receivable [Member] | Customer B [Member] | ||
Concentration Risk, Percentage | 16.00% | |
Customer Concentration Risk [Member] | Non-current Accounts Receivable [Member] | Customer C [Member] | ||
Concentration Risk, Percentage | 14.00% |
Note F - Inventory - Components
Note F - Inventory - Components of Inventory (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Finished goods | $ 287,761 | $ 496,358 |
Fabricated assemblies | 141,358 | 502,471 |
Total inventory | $ 429,119 | $ 998,829 |
Note G - Resalable Software L_3
Note G - Resalable Software Licenses Rights (Details Textual) - USD ($) | Dec. 31, 2015 | Nov. 11, 2015 | Dec. 31, 2019 | Mar. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 |
Payments to Acquire Intangible Assets | $ 1,736 | $ 30,398 | |||||
Asset Impairment Charges, Total | $ 6,957,516 | ||||||
Amortization of Intangible Assets, Total | 43,256 | 15,596 | |||||
Software License Rights | 73,802 | 73,802 | 7,915,610 | $ 73,802 | |||
Software License Rights [Member] | |||||||
Payments to Acquire Intangible Assets | $ 12,000,000 | ||||||
Finite-Lived Intangible Asset, Useful Life (Year) | 10 years | ||||||
Amortization of Intangible Assets, Total | 843,888 | 2,640,000 | 12,000,000 | ||||
Software License Rights | 0 | 0 | 0 | ||||
The 2015 Software License [Member] | |||||||
Amortization of Intangible Assets, Total | 40,404 | $ 18,198 | |||||
Software License Rights | $ 73,802 | 73,802 | $ 73,802 | ||||
Payments to Acquire Software | $ 180,000 | ||||||
Cumulative Amount of Amortization Expense, Net of Credits | $ 106,198 |
Note G - Resalable Software L_4
Note G - Resalable Software Licenses Rights - Summary of Software License Rights (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Resalable software license rights | $ 1,125,000 | |
Resalable software license rights, net of current portion | 73,802 | 6,790,610 |
Total software license rights | $ 73,802 | $ 7,915,610 |
Note G - Resalable Software L_5
Note G - Resalable Software Licenses Rights - Amortization Expense (Details) | Dec. 31, 2019USD ($) |
Finite-Lived Intangible Asset, Expected Amortization, Year One | $ 20,000 |
Finite-Lived Intangible Asset, Expected Amortization, Year Two | 20,000 |
Finite-Lived Intangible Asset, Expected Amortization, Year Three | 20,000 |
Finite-Lived Intangible Asset, Expected Amortization, Year Four | 17,000 |
Finite-Lived Intangible Asset, Expected Amortization, Year Two | 13,000 |
Licensing Agreements [Member] | |
Finite-Lived Intangible Asset, Expected Amortization, Year One | 18,000 |
Finite-Lived Intangible Asset, Expected Amortization, Year Two | 18,000 |
Finite-Lived Intangible Asset, Expected Amortization, Year Three | 18,000 |
Finite-Lived Intangible Asset, Expected Amortization, Year Four | 18,000 |
Finite-Lived Intangible Asset, Expected Amortization, Year Two | $ 1,802 |
Note H - Investments (Details T
Note H - Investments (Details Textual) | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2019HKD ($) | Dec. 31, 2018USD ($) | |
Debt Securities, Held-to-maturity, Current | $ 512,821 | $ 4,000,000 | |
Investment in Held-to-maturity Debt Securities, Term (Year) | 1 year | ||
Investment in Held-to-maturity Debt Securities, Interest Rate | 5.00% | 5.00% | |
Limit of Bond | $ 20,000,000 |
Note I - Equipment and Leaseh_3
Note I - Equipment and Leasehold Improvements (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Selling, General and Administrative Expenses [Member] | ||
Depreciation, Depletion and Amortization, Nonproduction, Total | $ 81,852 | $ 84,617 |
Note I - Equipment and Leaseh_4
Note I - Equipment and Leasehold Improvements - Summary of Equipment and Leasehold Improvements (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Property, plant, and equipment, gross | $ 867,813 | $ 839,060 |
Less accumulated depreciation and amortization | (772,304) | (690,452) |
Total | 95,509 | 148,608 |
Equipment [Member] | ||
Property, plant, and equipment, gross | 648,286 | 619,533 |
Furniture and Fixtures [Member] | ||
Property, plant, and equipment, gross | 164,079 | 164,079 |
Software Development [Member] | ||
Property, plant, and equipment, gross | 32,045 | 32,045 |
Leasehold Improvements [Member] | ||
Property, plant, and equipment, gross | $ 23,403 | $ 23,403 |
Note J - Intangible Assets (Det
Note J - Intangible Assets (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Amortization of Intangible Assets, Total | $ 43,256 | $ 15,596 |
Finite-Lived Intangible Asset, Expected Amortization, Year One | 20,000 | |
Finite-Lived Intangible Asset, Expected Amortization, Year Four | 17,000 | |
Finite-Lived Intangible Asset, Expected Amortization, Year Two | 13,000 | |
Finite-Lived Intangible Asset, Expected Amortization, after Year Five | 65,000 | |
Finite-Lived Intangible Asset, Expected Amortization, Year Two | 20,000 | |
Finite-Lived Intangible Asset, Expected Amortization, Year Three | 20,000 | |
Patents [Member] | ||
Inventory Write-down | 15,000 | |
Research, Development, and Engineering Expense [Member] | ||
Amortization of Intangible Assets, Total | $ 28,256 | $ 15,596 |
Note J - Intangible Assets - Su
Note J - Intangible Assets - Summary of Intangible Assets (Details) - Patents [Member] - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Gross carrying amount | $ 380,080 | $ 378,344 |
Accumulated amortization | (210,694) | (182,438) |
Write-offs | (15,000) | |
Net carrying amount | $ 154,386 | $ 195,906 |
Note K - Accrued Liabilities -
Note K - Accrued Liabilities - Summary of Accrued Liabilities (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Compensation | $ 193,823 | $ 224,135 |
Compensated absences | 155,962 | 154,169 |
Accrued legal and accounting fees | 105,933 | 77,133 |
Sales tax payable | 17,248 | 9,436 |
Factoring fees | 31,458 | 19,000 |
Other | 182,461 | 64,359 |
Total | $ 686,885 | $ 548,232 |
Note L - Related Party (Details
Note L - Related Party (Details Textual) - USD ($) | May 31, 2018 | Apr. 03, 2018 | Dec. 31, 2019 | Nov. 11, 2015 |
Asset Impairment Charges, Total | $ 6,957,516 | |||
Conversion of Series A-1 Shares into Common Stock [Member] | ||||
Conversion of Stock, Shares Converted (in shares) | 23,508 | 39,088 | ||
Preferred Stock, Conversion Price (in dollars per share) | $ 3.60 | $ 3.60 | ||
Conversion of Dividends Payable, Amount Converted | $ 25,463 | $ 330,552 | ||
Stock Issued During Period, Shares, Conversion of Convertible Securities (in shares) | 660,073 | 1,177,598 | ||
Director [Member] | ||||
Software License, Total | $ 12,000,000 | |||
Software License, Total | 21.60% | |||
Mr. Wong Kwok Fong [Member] | Accounts Payable [Member] | ||||
Due to Related Parties, Current, Total | 74,737 | |||
Mr. Michael DePasquale [Member] | Accrued Liabilities (Other) [Member] | ||||
Due to Related Parties, Current, Total | $ 114,000 |
Note M - Deferred Revenue (Deta
Note M - Deferred Revenue (Details Textual) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Maintenance Contracts [Member] | ||
Deferred Revenue, Current, Total | $ 359,000 | $ 197,000 |
Note N - Convertible Notes Pa_3
Note N - Convertible Notes Payable (Details Textual) - USD ($) | May 12, 2020 | May 06, 2020 | Jul. 10, 2019 | Jul. 01, 2019 | Jun. 14, 2019 | Apr. 04, 2019 | Jun. 30, 2019 | Mar. 31, 2020 | Mar. 30, 2020 | Mar. 25, 2020 | Mar. 12, 2020 | Dec. 31, 2019 | Nov. 11, 2015 |
Stock Issued During Period, Shares, Commitment Fees (in shares) | 200,000 | 80,000 | 130,000 | ||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ 3.60 | ||||||||||||
Payments of Stock Issuance Costs, Commitment Fees | $ 50,000 | ||||||||||||
Stock Issued During Period, Shares, Issued for Due Diligence Fee (in shares) | 266,667 | ||||||||||||
Stock Issued During Period, Value, Issued for Due Diligence Fee | $ 400,000 | ||||||||||||
Payments of Stock Issuance Costs, Banker Fees | 193,500 | ||||||||||||
Payments of Stock Issuance Costs, Legal Fees | 71,330 | ||||||||||||
Class of Warrant or Right, Recorded as Debt Discount | $ 595,662 | ||||||||||||
Forecast [Member] | |||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares) | 500,000 | ||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ 1.50 | ||||||||||||
Conversion of Senior Secured Convertible Note to Common Stock [Member] | Forecast [Member] | |||||||||||||
Conversion of Stock, Amount Converted | $ 3,250,000 | ||||||||||||
Conversion of Stock, Shares Issued (in shares) | 4,999,995 | ||||||||||||
Subsequent Event [Member] | |||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ 0.65 | ||||||||||||
Investor Warrant [Member] | |||||||||||||
Warrants and Rights Outstanding, Term (Year) | 5 years | ||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares) | 2,000,000 | ||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ 1.50 | ||||||||||||
Class of Warrant or Rights, Maximum Percentage of Securities Called by Warrants or Rights | 20.00% | ||||||||||||
Senior Secured Convertible Note [Member] | Forecast [Member] | |||||||||||||
Proceeds from Issuance of Debt | $ 2,100,000 | ||||||||||||
Debt Instrument, Fee Amount | 133,333 | ||||||||||||
Debt Instrument, Face Amount | $ 2,415,000 | ||||||||||||
The Note [Member] | Senior Secured Convertible Note [Member] | |||||||||||||
Debt Instrument, Convertible, Conversion Price (in dollars per share) | $ 1.50 | ||||||||||||
Debt Instrument, Unamortized Discount, Total | $ 510,000 | ||||||||||||
Debt Instrument, Face Amount | 3,060,000 | ||||||||||||
Proceeds from Debt, Net of Issuance Costs | 2,550,000 | ||||||||||||
Debt Instrument, Periodic Payment, Principal due in 180 Days | 918,000 | ||||||||||||
Debt Instrument, Periodic Payment, Principal due in 270 Days | $ 1,071,000 | ||||||||||||
Debt Instrument, Convertible, Percent | 25.00% | ||||||||||||
Amended Note [Member] | Senior Secured Convertible Note [Member] | Subsequent Event [Member] | |||||||||||||
Debt Instrument, Convertible, Conversion Price (in dollars per share) | $ 0.65 | ||||||||||||
Debt Instrument, Face Amount | $ 3,789,000 | ||||||||||||
Convertible Debentures [Member] | |||||||||||||
Proceeds from Issuance of Debt | $ 550,000 | ||||||||||||
Debt Instrument, Convertible, Conversion Price (in dollars per share) | $ 1.50 | ||||||||||||
Debt Instrument, Discount Percentage | 7.00% | ||||||||||||
Debt Instrument, Unamortized Discount, Total | $ 40,000 | ||||||||||||
Debt Instrument, Number of Additional Borrowings Allowed | 2 | ||||||||||||
Debt Instrument, Additional Borrowings Allowed Amount | $ 550,000 | ||||||||||||
Debt Agreement, Maximum Borrowing Capacity | 1,020,000 | ||||||||||||
Stock Issued During Period, Shares, Commitment Fees (in shares) | 10,000 | ||||||||||||
Debt Instrument, Fee Amount | 120,000 | ||||||||||||
Monthly Commitment Fee | $ 15,000 | ||||||||||||
Convertible Debentures [Member] | Minimum [Member] | |||||||||||||
Debt Instrument, Convertible, Premium Payment Percentage | 5.00% | ||||||||||||
Convertible Debentures [Member] | Maximum [Member] | |||||||||||||
Debt Instrument, Convertible, Premium Payment Percentage | 25.00% | ||||||||||||
Convertible Redeemable Note [Member] | |||||||||||||
Proceeds from Issuance of Debt | $ 157,000 | ||||||||||||
Debt Instrument, Convertible, Conversion Price (in dollars per share) | $ 1.50 | ||||||||||||
Debt Instrument, Fee Amount | $ 30,000 | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | ||||||||||||
Stock Returned to Company, Prepayment of Debt Covenant (in shares) | 20,000 | ||||||||||||
Convertible Redeemable Note [Member] | Minimum [Member] | |||||||||||||
Debt Instrument, Convertible, Premium Payment Percentage | 10.00% | ||||||||||||
Convertible Redeemable Note [Member] | Maximum [Member] | |||||||||||||
Debt Instrument, Convertible, Premium Payment Percentage | 30.00% | ||||||||||||
Convertible Debt [Member] | |||||||||||||
Debt Instrument, Unamortized Discount, Total | $ 574,330 | ||||||||||||
Debt Issuance Costs, Net, Total | $ 195,000 | ||||||||||||
Legal Fees | $ 17,000 |
Note N - Convertible Notes Pa_4
Note N - Convertible Notes Payable - Notes Payable (Details) - Convertible Debt [Member] | Dec. 31, 2019USD ($) |
Principal amount | $ 3,060,000 |
Less unamortized debt discount | (574,330) |
Less unamortized debt issuance costs | (230,216) |
Notes payable, net of unamortized debt discount and debt issuance costs | $ 2,255,454 |
Note N - Convertible Notes Pa_5
Note N - Convertible Notes Payable - Interest Expense (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
April 4, 2019 debenture discount amortized | $ 571,332 | |
April 4, 2019 debenture deferred costs amortized | 424,980 | |
Total | 1,069,134 | |
April 4, 2019 Debenture [Member] | ||
April 4, 2019 debenture interest expense | 55,000 | |
April 4, 2019 debenture discount amortized | 40,000 | |
April 4, 2019 debenture deferred costs amortized | 175,000 | |
June 14, 2019 Convertible Note[Member] | ||
April 4, 2019 debenture interest expense | 17,822 | |
April 4, 2019 debenture deferred costs amortized | 37,000 | |
July 10, 2019 Convertible Note [Member] | ||
April 4, 2019 debenture discount amortized | 245,083 | |
April 4, 2019 debenture deferred costs amortized | 212,980 | |
July 10, 2019 warrant valuation (debt discount) amortization | $ 286,249 |
Note O - Leases - Operating Lea
Note O - Leases - Operating Lease Balance Sheet Information (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
Operating lease cost | $ 186,246 | |||
Short-term lease cost | 41,535 | |||
Total lease cost | 227,781 | |||
Operating right-of-use assets | 566,479 | |||
Operating lease liabilities, current portion | 170,560 | $ 135,519 | $ 0 | |
Operating lease liabilities, net of current portion | 390,466 | $ 454,823 | $ 0 | |
Operating Lease, Liability, Total | $ 561,026 | $ 116,875 | ||
Weighted average remaining lease term (in years) – operating leases (Year) | 3 years 120 days | |||
Weighted average discount rate – operating leases | 5.50% |
Note O - Leases - Supplemental
Note O - Leases - Supplemental Cash Flow Information Related to Leases (Details) | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Cash paid for amounts included in the measurement of operating lease liabilities | $ 179,105 |
Note O - Leases - Operating L_2
Note O - Leases - Operating Lease Liability Maturity (Details) - USD ($) | Dec. 31, 2019 | Sep. 30, 2019 |
2020 | $ 197,724 | |
2021 | 170,853 | |
2022 | 160,817 | |
2023 | 89,226 | |
Total future lease payments | 618,620 | |
Less: imputed interest | (57,594) | |
Operating Lease, Liability, Total | $ 561,026 | $ 116,875 |
Note Q - Equity (Details Textua
Note Q - Equity (Details Textual) - USD ($) | Aug. 24, 2018 | Aug. 22, 2018 | Nov. 11, 2015 | Oct. 29, 2015 | Sep. 23, 2015 | Nov. 13, 2014 | May 31, 2018 | Apr. 30, 2018 | Mar. 31, 2018 | Oct. 31, 2017 | Sep. 30, 2017 | May 23, 2018 | May 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2015 | Mar. 31, 2020 | Mar. 12, 2020 | Feb. 13, 2020 | Aug. 23, 2018 |
Preferred Stock, Shares Authorized (in shares) | 5,000,000 | ||||||||||||||||||||
Preferred Stock, Par or Stated Value Per Share (in dollars per share) | $ 0.0001 | ||||||||||||||||||||
Share Price (in dollars per share) | $ 0.50 | ||||||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ 3.60 | ||||||||||||||||||||
Payments of Stock Issuance Costs | $ 361,273 | $ 143,945 | |||||||||||||||||||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture, Total | $ 35,013 | $ 37,532 | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period (in shares) | 0 | 0 | |||||||||||||||||||
Subsequent Event [Member] | |||||||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ 0.65 | ||||||||||||||||||||
Subsequent Event [Member] | Convertible Note Due in July 13, 2020 [Member] | |||||||||||||||||||||
Debt Instrument, Convertible, Conversion Price (in dollars per share) | $ 1.15 | ||||||||||||||||||||
Promissory Note [Member] | |||||||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares) | 69,445 | ||||||||||||||||||||
Amended Note [Member] | Subsequent Event [Member] | Senior Secured Convertible Note [Member] | |||||||||||||||||||||
Debt Instrument, Convertible, Conversion Price (in dollars per share) | $ 0.65 | ||||||||||||||||||||
Common Stock [Member] | |||||||||||||||||||||
Stock Issued During Period, Shares, New Issues (in shares) | 1,380,000 | ||||||||||||||||||||
Conversion of Stock, Shares Issued (in shares) | 98,893 | ||||||||||||||||||||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture, Total (in shares) | 36,897 | 20,976 | |||||||||||||||||||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture, Total | $ 3 | $ 2 | |||||||||||||||||||
Director [Member] | Common Stock [Member] | |||||||||||||||||||||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture, Total (in shares) | 36,897 | 20,976 | |||||||||||||||||||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture, Total | $ 35,013 | $ 37,532 | |||||||||||||||||||
Securities Purchase Agreement Warrants [Member] | |||||||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ 1.50 | ||||||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares) | 2,392,502 | 996,877 | |||||||||||||||||||
Fair Value Adjustment of Warrants | $ 1,288,139 | ||||||||||||||||||||
September 2015 Warrants [Member] | |||||||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ 1.50 | $ 3.60 | |||||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares) | 166,668 | 69,445 | |||||||||||||||||||
Fair Value Adjustment of Warrants | $ 140,827 | ||||||||||||||||||||
Public Offering [Member] | |||||||||||||||||||||
Stock Issued During Period, Shares, New Issues (in shares) | 1,380,000 | ||||||||||||||||||||
Units Issued During Period, Units, New Issues (in shares) | 1,200,000 | ||||||||||||||||||||
Number of Common Shares Called, Per Unit (in shares) | 1 | ||||||||||||||||||||
Shares Issued, Price Per Share (in dollars per share) | $ 1.50 | ||||||||||||||||||||
Warrants and Rights Outstanding, Term (Year) | 5 years | ||||||||||||||||||||
Proceeds from Issuance or Sale of Equity, Total | $ 2,070,000 | ||||||||||||||||||||
Payments for Commissions, Percent | 7.00% | ||||||||||||||||||||
Payments for Commissions | $ 144,900 | ||||||||||||||||||||
Payments for Underwriting Expenses for Issuance or Sale of Equity | 50,000 | ||||||||||||||||||||
Proceeds from Issuance or Sale of Equity, Net, Total | $ 1,875,100 | ||||||||||||||||||||
Public Offering [Member] | August 2018 Warrants [Member] | |||||||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right (in shares) | 0.75 | ||||||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ 1.50 | ||||||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares) | 1,035,000 | ||||||||||||||||||||
Over-Allotment Option [Member] | |||||||||||||||||||||
Stock Issued During Period, Shares, New Issues (in shares) | 180,000 | ||||||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares) | 135,000 | ||||||||||||||||||||
Private Investor SPA [Member] | |||||||||||||||||||||
Stock Issued During Period, Shares, New Issues (in shares) | 664,584 | ||||||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ 3.60 | ||||||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares) | 996,877 | ||||||||||||||||||||
Proceeds from Issuance of Private Placement | $ 1,595,000 | ||||||||||||||||||||
Term Of Warrant (Year) | 5 years | ||||||||||||||||||||
Conversion from Series A-1 Preferred Stock to Common Stock [Member] | |||||||||||||||||||||
Conversion of Stock, Shares Converted (in shares) | 27,404 | ||||||||||||||||||||
Conversion of Stock, Shares Issued (in shares) | 1,738,778 | 761,222 | |||||||||||||||||||
Conversion of Dividends Payable on Series A-1 Preferred Stock to Common Stock [Member] | |||||||||||||||||||||
Conversion of Dividends Payable, Amount Converted | $ 356,015 | 356,015 | |||||||||||||||||||
Conversion of Dividends Payable, Shares Issued (in shares) | 98,893 | ||||||||||||||||||||
Conversion of Series B-1 Shares into Common Stock [Member] | |||||||||||||||||||||
Conversion of Stock, Shares Issued (in shares) | 2,916,668 | ||||||||||||||||||||
Conversion of Dividends Payable on Series B-1 Preferred Stock to Common Stock [Member] | |||||||||||||||||||||
Conversion of Dividends Payable, Amount Converted | $ 472,426 | $ 472,426 | |||||||||||||||||||
Conversion of Dividends Payable, Shares Issued (in shares) | 131,229 | ||||||||||||||||||||
Series A-1 Convertible Preferred Stock [Member] | |||||||||||||||||||||
Preferred Stock, Shares Authorized (in shares) | 100,000 | ||||||||||||||||||||
Stock Issued During Period, Shares, New Issues (in shares) | 5,500 | 84,500 | 90,000 | ||||||||||||||||||
Preferred Stock, Shares Outstanding, Ending Balance (in shares) | 0 | ||||||||||||||||||||
Share Price (in dollars per share) | $ 100 | $ 100 | |||||||||||||||||||
Proceeds from Issuance of Convertible Preferred Stock | $ 550,000 | $ 8,450,000 | |||||||||||||||||||
Conversion of Dividends Payable, Amount Converted | $ 25,463 | $ 330,552 | $ 540,000 | $ 540,000 | |||||||||||||||||
Conversion of Stock, Shares Issued (in shares) | 150,000 | ||||||||||||||||||||
Conversion of Stock, Shares Converted (in shares) | 23,508 | 39,088 | 27,404 | ||||||||||||||||||
Preferred Stock, Shares Issued, Total (in shares) | 0 | 0 | |||||||||||||||||||
Series B-1 Convertible Preferred Stock [Member] | |||||||||||||||||||||
Preferred Stock, Shares Authorized (in shares) | 105,000 | ||||||||||||||||||||
Stock Issued During Period, Shares, New Issues (in shares) | 105,000 | 105,000 | |||||||||||||||||||
Preferred Stock, Shares Outstanding, Ending Balance (in shares) | 0 | ||||||||||||||||||||
Share Price (in dollars per share) | $ 100 | ||||||||||||||||||||
Proceeds from Issuance of Convertible Preferred Stock | $ 10,500,000 | ||||||||||||||||||||
Conversion of Dividends Payable, Amount Converted | $ 55,342 | $ 417,084 | |||||||||||||||||||
Conversion of Stock, Shares Converted (in shares) | 44,580 | 60,420 | |||||||||||||||||||
Preferred Stock, Shares Issued, Total (in shares) | 0 | 0 | |||||||||||||||||||
September 2015 Warrants [Member] | |||||||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ 3.60 | ||||||||||||||||||||
Term Of Warrant (Year) | 5 years |
Note Q - Stockholders' Equity -
Note Q - Stockholders' Equity - Balances and Conversion of Preferred Shares and Accrued Dividends (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||
May 31, 2018 | Apr. 30, 2018 | Mar. 31, 2018 | Oct. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2016 | |
Series A-1 Convertible Preferred Stock [Member] | ||||||||||||||
Balance (in shares) | 62,596 | 62,596 | 90,000 | |||||||||||
Balance | $ 236,658 | $ 236,658 | $ 270,000 | |||||||||||
Accrual of dividends | $ 25,463 | $ 93,894 | $ 101,658 | $ 135,000 | $ 135,000 | $ 135,000 | ||||||||
Conversion into common stock (in shares) | (23,508) | (39,088) | (27,404) | |||||||||||
Conversion into common stock | $ (25,463) | $ (330,552) | $ (540,000) | $ (540,000) | ||||||||||
Series B-1 Convertible Preferred Stock [Member] | ||||||||||||||
Balance (in shares) | 105,000 | 105,000 | 105,000 | |||||||||||
Balance | $ 393,750 | $ 393,750 | $ 131,250 | |||||||||||
Accrual of dividends | $ 16,408 | $ 62,268 | $ 65,625 | $ 65,625 | $ 65,625 | $ 65,625 | ||||||||
Conversion into common stock (in shares) | (44,580) | (60,420) | ||||||||||||
Conversion into common stock | $ (55,342) | $ (417,084) |
Note Q - Equity - Summary of Wa
Note Q - Equity - Summary of Warrant Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Outstanding, warrants (in shares) | 3,780,976 | 1,398,969 | |
Outstanding, weighted average exercise price, warrants (in dollars per share) | $ 1.59 | $ 3.81 | |
Outstanding, weighted average remaining contractual life, warrants (Year) | 3 years 343 days | 2 years 18 days | 2 years 21 days |
Granted, warrants (in shares) | 2,000,000 | 1,035,000 | |
Granted, weighted average exercise price, warrants (in dollars per share) | $ 1.50 | $ 1.50 | |
Increase due to trigger of anti-dilution provision feature, warrants (in shares) | 1,492,848 | ||
Increase due to trigger of anti-dilution provision feature, weighted average exercise price, warrants (in dollars per share) | $ 1.50 | ||
Exercised, warrants (in shares) | |||
Exercised, weighted average exercise price, warrants (in dollars per share) | |||
Forfeited, warrants (in shares) | |||
Forfeited, weighted average exercise price, warrants (in dollars per share) | |||
Expired, warrants (in shares) | (2,392,502) | (145,841) | |
Expired, weighted average exercise price, warrants (in dollars per share) | $ 1.50 | $ 6 | |
Outstanding, warrants (in shares) | 3,388,474 | 3,780,976 | 1,398,969 |
Outstanding, weighted average exercise price, warrants (in dollars per share) | $ 1.60 | $ 1.59 | $ 3.81 |
Vested or expected to vest, warrants (in shares) | 3,388,474 | ||
Vested or expected to vest, weighted average exercise price, warrants (in dollars per share) | $ 1.60 | ||
Vested or expected to vest, weighted average remaining contractual life, warrants (Year) | |||
Exercisable, warrants (in shares) | 3,388,474 | ||
Exercisable, weighted average exercise price, warrants (in dollars per share) | $ 1.60 | ||
Exercisable, weighted average remaining contractual life, warrants (Year) |
Note R - Stock Options (Details
Note R - Stock Options (Details Textual) - USD ($) | Jan. 27, 2016 | Oct. 12, 2004 | Dec. 31, 2019 | Dec. 31, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term (Year) | 4 years 109 days | 5 years | ||
Share Price (in dollars per share) | $ 0.50 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number (in shares) | 992,747 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share) | $ 1.03 | $ 1.53 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 0 | $ 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | 891,760 | $ 946,435 | ||
Share-based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount | $ 731,370 | |||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 332 days | |||
In The Money Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number (in shares) | 0 | |||
The2004 Stock Option Plan [Member] | ||||
Common Stock, Capital Shares Reserved for Future Issuance (in shares) | 166,667 | |||
The2004 Stock Option Plan [Member] | Nonstatutory Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term (Year) | 10 years | |||
The2004 Stock Option Plan [Member] | Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent | 85.00% | |||
The 2015 Equity Incentive Plan [Member] | ||||
Common Stock, Capital Shares Reserved for Future Issuance (in shares) | 666,667 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period (Year) | 10 years | |||
The 2015 Equity Incentive Plan [Member] | Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent | 100.00% | |||
The 2015 Equity Incentive Plan [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent | 110.00% |
Note R - Stock Options - Option
Note R - Stock Options - Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Outstanding (in shares) | 1,588,014 | 1,477,493 |
Outstanding, weighted average exercise price (in dollars per share) | $ 2.72 | $ 2.91 |
Granted (in shares) | 241,334 | 351,918 |
Granted, weighted average exercise price (in dollars per share) | $ 1.17 | $ 1.97 |
Exercised (in shares) | 0 | 0 |
Exercised, weighted average exercise price (in dollars per share) | ||
Forfeited (in shares) | (44,783) | (149,866) |
Forfeited, weighted average exercise price (in dollars per share) | $ 2.27 | $ 2.63 |
Expired (in shares) | (32,841) | (91,531) |
Expired, weighted average exercise price (in dollars per share) | $ 3.08 | $ 3.03 |
Outstanding, weighted average remaining life (Year) | 4 years 109 days | 5 years |
Outstanding, aggregate intrinsic value | $ 0 | $ 0 |
Outstanding (in shares) | 1,751,724 | 1,588,014 |
Outstanding, weighted average exercise price (in dollars per share) | $ 2.51 | $ 2.72 |
Vested or expected to vest (in shares) | 1,594,905 | |
Vested or expected, weighted average exercise price (in dollars per share) | $ 2.59 | |
Vested or expected to vest, weighted average remaining life (Year) | 4 years 62 days | |
Vested or expected to vest, aggregate intrinsic value | $ 0 | |
Exercisable (in shares) | 992,747 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 2.88 | |
Exercisable, weighted average remaining life (Year) | 3 years 229 days | |
Exercisable, aggregate intrinsic value | $ 0 | |
The2004 Stock Option Plan [Member] | ||
Outstanding (in shares) | 33,335 | 52,296 |
Granted (in shares) | ||
Exercised (in shares) | ||
Forfeited (in shares) | ||
Expired (in shares) | (2,084) | (18,961) |
Outstanding (in shares) | 31,251 | 33,335 |
The 2015 Equity Incentive Plan [Member] | ||
Outstanding (in shares) | 381,918 | 82,086 |
Granted (in shares) | 241,334 | 351,918 |
Exercised (in shares) | ||
Forfeited (in shares) | (40,615) | (38,613) |
Expired (in shares) | (14,717) | (13,473) |
Outstanding (in shares) | 567,920 | 381,918 |
Non Plan [Member] | ||
Outstanding (in shares) | 1,172,761 | 1,343,111 |
Granted (in shares) | ||
Exercised (in shares) | ||
Forfeited (in shares) | (4,168) | (111,253) |
Expired (in shares) | (16,040) | (59,097) |
Outstanding (in shares) | 1,152,553 | 1,172,761 |
Note R - Stock Options - Opti_2
Note R - Stock Options - Options Outstanding and Exercisable (Details) | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 2.88 |
Exercise Price Range 1 [Member] | |
Range of exercise prices, lower range (in dollars per share) | 0.51 |
Range of exercise prices, upper range (in dollars per share) | $ 1.99 |
Options outstanding (in shares) | shares | 418,336 |
Options outstanding, weighted average exercise price (in dollars per share) | $ 1.52 |
Options outstanding, weighted average remaining remaining life (Year) | 5 years 284 days |
Options exercisable (in shares) | shares | 62,712 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 1.96 |
Exercise Price Range 2 [Member] | |
Range of exercise prices, lower range (in dollars per share) | 2 |
Range of exercise prices, upper range (in dollars per share) | $ 3.50 |
Options outstanding (in shares) | shares | 1,164,841 |
Options outstanding, weighted average exercise price (in dollars per share) | $ 2.56 |
Options outstanding, weighted average remaining remaining life (Year) | 4 years 102 days |
Options exercisable (in shares) | shares | 761,488 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 2.58 |
Exercise Price Range 3 [Member] | |
Range of exercise prices, lower range (in dollars per share) | 3.51 |
Range of exercise prices, upper range (in dollars per share) | $ 4.92 |
Options outstanding (in shares) | shares | 168,547 |
Options outstanding, weighted average exercise price (in dollars per share) | $ 4.58 |
Options outstanding, weighted average remaining remaining life (Year) | 277 days |
Options exercisable (in shares) | shares | 168,547 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 4.58 |
Exercise Price Range 4 [Member] | |
Range of exercise prices, lower range (in dollars per share) | 0.51 |
Range of exercise prices, upper range (in dollars per share) | $ 4.92 |
Options outstanding (in shares) | shares | 1,751,724 |
Options exercisable (in shares) | shares | 992,747 |
Note S - Income Taxes (Details
Note S - Income Taxes (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Expense (Benefit), Total | $ 0 | $ 0 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued, Total | 0 | $ 0 |
Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | ||
Operating Loss Carryforwards, Total | 70,000 | |
Operating Loss Carryforwards, Subject to Expiration | 55,000 | |
Operating Loss Carryforwards, Not Subject to Expiration | $ 15,000 | |
Open Tax Year | 2016 2017 2018 2019 | |
State and Local Jurisdiction [Member] | ||
Operating Loss Carryforwards, Total | $ 3,600 | |
Open Tax Year | 2016 2017 2018 2019 |
Note S - Income Taxes - Compone
Note S - Income Taxes - Components of Deferred Taxes (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Accrued compensation | $ 84,000 | $ 91,000 |
Accounts receivable allowance | 474,000 | 474,000 |
Stock-based compensation | 894,000 | 644,000 |
Basis differences in fixed assets | (5,000) | (13,000) |
Basis differences in intangible assets | 62,000 | 50,000 |
Net operating loss and credit carryforwards | 15,002,000 | 12,735,000 |
Valuation allowances | $ (16,511,000) | $ (13,981,000) |
Note S - Income Taxes - Reconci
Note S - Income Taxes - Reconciliation of the Effective Income Tax Rate to US Federal Statutory Income Tax Rate (Details) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Federal statutory income tax rate | 21.00% | 21.00% |
Permanent differences | (2.00%) | |
Effect of net operating loss | (22.00%) | (21.00%) |
Effective tax rate |
Note T - Profit Sharing Plan (D
Note T - Profit Sharing Plan (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 0 | $ 0 |
Note U- Earnings Per Share (EPS
Note U- Earnings Per Share (EPS) - Reconciliation of Numerator of Basic and Diluted EPS Calculations (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Net Loss | $ (14,588,700) | $ (6,868,875) |
Deemed dividend from trigger of anti-dilution provision feature | (1,428,966) | |
Convertible preferred stock dividends | (198,033) | |
Net loss available to common stockholders (basic and diluted EPS) | $ (14,588,700) | $ (8,495,874) |
Note U - Earnings Per Share (_3
Note U - Earnings Per Share (EPS) - Securities Excluded From the Diluted Per Share Calculation (Details) - shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Exercise Price Greater Than Average Market Price Of Common Shares [Member] | ||
Antidilutive securities (in shares) | 945 | 697,962 |
Exercise Price Greater Than Average Market Price Of Common Shares [Member] | Share-based Payment Arrangement, Option [Member] | ||
Antidilutive securities (in shares) | 945 | 83 |
Exercise Price Greater Than Average Market Price Of Common Shares [Member] | Warrant [Member] | ||
Antidilutive securities (in shares) | 697,879 | |
Exercise Price Less Than Average Market Price Of Common Shares [Member] | ||
Antidilutive securities (in shares) | 6,596,938 | 3,196,576 |
Exercise Price Less Than Average Market Price Of Common Shares [Member] | Share-based Payment Arrangement, Option [Member] | ||
Antidilutive securities (in shares) | 1,749,724 | 1,583,014 |
Exercise Price Less Than Average Market Price Of Common Shares [Member] | Warrant [Member] | ||
Antidilutive securities (in shares) | 3,388,474 | 186,806 |
Exercise Price Less Than Average Market Price Of Common Shares [Member] | Convertible Debt Securities [Member] | ||
Antidilutive securities (in shares) | 1,458,740 | |
Exercise Price Less Than Average Market Price Of Common Shares [Member] | Preferred Stock 1 [Member] | ||
Antidilutive securities (in shares) | 1,426,756 |
Note V - Subsequent Events (Det
Note V - Subsequent Events (Details Textual) | May 12, 2020shares | May 06, 2020USD ($)$ / sharesshares | Apr. 20, 2020USD ($) | Apr. 02, 2020shares | Mar. 30, 2020USD ($)$ / sharesshares | Mar. 25, 2020USD ($)$ / sharesshares | Feb. 13, 2020USD ($)$ / sharesshares | Jan. 13, 2020USD ($)$ / sharesshares | Jun. 14, 2019shares | Apr. 04, 2019shares | May 14, 2020shares | Jun. 30, 2019shares | Dec. 31, 2019$ / sharesshares | Dec. 31, 2018shares | Mar. 31, 2020$ / shares | Nov. 11, 2015$ / shares |
Stock Issued During Period, Shares, Commitment Fees (in shares) | 200,000 | 80,000 | 130,000 | |||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ / shares | $ 3.60 | |||||||||||||||
Total Warrants Exercised (in shares) | ||||||||||||||||
Share Price (in dollars per share) | $ / shares | $ 0.50 | |||||||||||||||
Forecast [Member] | ||||||||||||||||
Sales Incentive Fee, for Each 5,000,000 Revenue Not to Exceed 20,000,000 Revenue | $ | $ 500,000 | |||||||||||||||
Sales Incentive Fee Payable in Shares, for Each 5,000,000 Revenue Not to Exceed 20,000,000 Revenue (in shares) | 500,000 | |||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ / shares | $ 1.50 | |||||||||||||||
Sales Incentive, Maximum Number of Shares and Warrants Issuable (in shares) | 2,000,000 | |||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares) | 500,000 | |||||||||||||||
Total Warrants Exercised (in shares) | 972,000 | |||||||||||||||
Proceeds from Issuance of Warrants | $ | $ 1,458,000 | |||||||||||||||
Proceeds from Paycheck Protection Program Under CARES Act | $ | $ 340,000 | |||||||||||||||
Forecast [Member] | Directors [Member] | ||||||||||||||||
Stock Issued During Period, Shares, Issued for Services (in shares) | 7,077 | 6,850 | ||||||||||||||
Forecast [Member] | A New Employee [Member] | ||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares) | 5,000 | |||||||||||||||
Class of Warrant or Right, Vesting Period (Year) | 3 years | |||||||||||||||
Forecast [Member] | Warrants Issuable in Connection with Sales Incentive Agreement [Member] | ||||||||||||||||
Sales Incentive, Covenant, Warrants Term (Year) | 5 years | |||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights, for Each 1,000,000 Revenue in Excess of 20,000,000 (in shares) | 100,000 | |||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ / shares | $ 1.50 | |||||||||||||||
Forecast [Member] | Warrants Issued in Connection with Senior Secured Convertible Note [Member] | ||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ / shares | $ 1.16 | |||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares) | 1,900,000 | |||||||||||||||
Forecast [Member] | Warrants Issued in Connection with Senior Secured Convertible Note [Member] | Maxim [Member] | ||||||||||||||||
Class of Warrant or Right, Percentage of Placement Fee from Gross Proceeds from Issuance of Warrants | 7.00% | |||||||||||||||
Convertible Note Due in July 13, 2020 [Member] | Forecast [Member] | ||||||||||||||||
Stock Issued During Period, Shares, Commitment Fees (in shares) | 50,000 | |||||||||||||||
Senior Secured Convertible Note [Member] | Forecast [Member] | ||||||||||||||||
Proceeds from Issuance of Debt | $ | $ 2,100,000 | |||||||||||||||
Debt Instrument, Fee Amount | $ | 133,333 | |||||||||||||||
Debt Instrument, Face Amount | $ | $ 2,415,000 | |||||||||||||||
Debt Instrument, Number of Monthly Periodic Payments | 5 | |||||||||||||||
Debt Instrument, Periodic Payment, Principal | $ | $ 268,333 | |||||||||||||||
Shares Issued, Price Per Share (in dollars per share) | $ / shares | $ 1.16 | |||||||||||||||
Stock Issued During Period, Shares, Due Diligence Fees (in shares) | 114,943 | |||||||||||||||
Share Price (in dollars per share) | $ / shares | $ 1.16 | |||||||||||||||
Subsequent Event [Member] | ||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ / shares | $ 0.65 | |||||||||||||||
Subsequent Event [Member] | Convertible Note Due in June 13, 2020 [Member] | ||||||||||||||||
Proceeds from Issuance of Debt | $ | $ 157,000 | |||||||||||||||
Debt Instrument, Convertible, Conversion Price (in dollars per share) | $ / shares | $ 1.50 | |||||||||||||||
Debt Instrument, Convertible, Premium Payment Percentage | 10.00% | |||||||||||||||
Debt Instrument, Number of Shares Issuable for Commitment Fee (in shares) | 650,000 | |||||||||||||||
Debt Instrument, Fee Amount | $ | $ 75,000 | |||||||||||||||
Debt Instrument, Number of Shares Issuable for Commitment Fee if Debt Repayment Occurs Prior to Maturity Date (in shares) | 50,000 | |||||||||||||||
Subsequent Event [Member] | Convertible Note Due in June 13, 2020 [Member] | Maximum [Member] | ||||||||||||||||
Debt Instrument, Convertible, Premium Payment Percentage | 30.00% | |||||||||||||||
Subsequent Event [Member] | Convertible Note Due in July 13, 2020 [Member] | ||||||||||||||||
Proceeds from Issuance of Debt | $ | $ 126,000 | |||||||||||||||
Debt Instrument, Convertible, Conversion Price (in dollars per share) | $ / shares | $ 1.15 | |||||||||||||||
Debt Instrument, Convertible, Premium Payment Percentage | 10.00% | |||||||||||||||
Debt Instrument, Number of Shares Issuable for Commitment Fee (in shares) | 550,000 | |||||||||||||||
Debt Instrument, Fee Amount | $ | $ 57,500 | |||||||||||||||
Debt Instrument, Number of Shares Issuable for Commitment Fee if Debt Repayment Occurs Prior to Maturity Date (in shares) | 50,000 | |||||||||||||||
Subsequent Event [Member] | Convertible Note Due in July 13, 2020 [Member] | Maximum [Member] | ||||||||||||||||
Debt Instrument, Convertible, Premium Payment Percentage | 30.00% |