hopTo (HPTO) 10-Q 21 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Nov. 15, 2016
Document And Entity Information
Entity Registrant Name	hopTo Inc.
Entity Central Index Key	1,021,435
Document Type	10-Q
Document Period End Date	Sep. 30, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		9,804,462
Trading Symbol	HPTO
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,016

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Current Assets:
Cash	$ 364,100	$ 1,777,300
Accounts receivable, net	150,500	434,900
Prepaid expenses	98,300	139,200
Total Current Assets	612,900	2,351,400
Capitalized software development costs, net		20,800
Property and equipment, net	161,600	252,500
Other assets	109,000	109,000
Total Assets	883,500	2,733,700
Current Liabilities:
Accounts payable and accrued expenses	885,000	1,018,000
Deferred revenue	1,705,100	2,467,000
Deferred rent	61,600	21,000
Capital lease	9,000	8,400
Other current liabilities	392,900
Total Current Liabilities	3,053,600	3,514,400
Warrants liability		31,600
Deposit liability	81,400	81,400
Deferred revenue	1,704,600	1,465,800
Deferred rent	9,300	26,700
Capital lease		6,800
Total Liabilities	4,848,900	5,126,700
Commitments and contingencies
Stockholders' Deficit:
Preferred stock, $0.01 par value, 5,000,000 shares authorized, no shares issued and outstanding
Common stock, $0.0001 par value, 195,000,000 shares authorized, 9,804,462 and 9,731,233 shares issued and outstanding at September 30, 2016 and December 31, 2015, respectively	14,700	14,600
Additional paid-in capital	78,491,300	78,189,300
Accumulated deficit	(82,471,400)	(80,596,900)
Total Stockholders' Deficit	(3,965,400)	(2,393,000)
Total Liabilities and Stockholders' Deficit	$ 883,500	$ 2,733,700

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Preferred stock par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued
Preferred stock, shares outstanding
Common stock par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	195,000,000	195,000,000
Common stock, shares issued	9,804,462	9,731,233
Common stock, shares outstanding	9,804,462	9,731,233

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income Statement [Abstract]
Revenue	$ 898,500	$ 1,128,800	$ 2,864,400	$ 3,958,700
Costs of revenue	8,300	108,900	129,500	319,200
Gross profit	890,200	1,019,900	2,734,900	3,639,500
Operating expenses:
Selling and marketing	93,900	419,800	664,600	1,373,500
General and administrative	821,600	773,300	2,114,600	2,452,400
Research and development	491,500	1,038,400	1,860,900	3,304,500
Total operating expenses	1,407,000	2,231,500	4,640,100	7,130,400
Loss from operations	(516,800)	(1,211,600)	(1,905,200)	(3,490,900)
Other income (expense):
Change in fair value of warrants liability	54,400	(2,400)	29,300	126,900
Other income (expense), net	1,100	200	3,700	(100)
Loss from operations before provision for income tax	(461,300)	(1,213,800)	(1,872,200)	(3,364,100)
Provision for income tax	700	700	2,300	3,300
Net Loss	$ (462,000)	$ (1,214,500)	$ (1,874,500)	$ (3,367,400)
Basic and diluted loss per share	$ (0.05)	$ (0.14)	$ (0.19)	$ (0.42)
Average weighted common shares outstanding - basic and diluted	9,784,163	8,937,264	9,763,111	8,006,689

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Stockholders' Deficit (Unaudited) - USD ($)	Preferred Stock [Member]	Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Deficit [Member]	Total
Beginning balance at Dec. 31, 2014		$ 11,200	$ 74,600,700	$ (76,205,800)
Beginning balance, shares at Dec. 31, 2014		7,502,814
Private placement of stock and warrants, shares		2,105,919
Employee stock option issuances, shares		6,000
Vesting of restricted stock awards		$ 200
Vesting of restricted stock awards, shares		99,819
Par value of shares issued in private placement		$ 3,200
Stock-based compensation expense			637,600
Company payment of employee taxes for stock-based compensation			(11,900)
Proceeds from exercise of employee stock options			4,900
Proceeds from private placement of common stock and warrants, net of par value of shares issued			2,547,300
Cost of private placement of common stock and warrants			(116,400)
Reclassification of warrants liability to equity (2014 Pipe)			407,300
Other Rounding			(100)
Net loss				(3,367,400)	(3,367,400)
Ending balance at Sep. 30, 2015		$ 14,600	78,069,400	(79,573,200)	(1,489,200)
Ending balance, shares at Sep. 30, 2015		9,714,552
Beginning balance at Dec. 31, 2015		$ 14,600	78,189,300	(80,596,900)	(2,393,000)
Beginning balance, shares at Dec. 31, 2015		9,731,233
Private placement of stock and warrants, shares
Employee stock option issuances, shares		1,800
Vesting of restricted stock awards		$ 100
Vesting of restricted stock awards, shares		71,429
Par value of shares issued in private placement
Stock-based compensation expense			303,400
Company payment of employee taxes for stock-based compensation			(2,700)
Proceeds from exercise of employee stock options			1,500
Proceeds from private placement of common stock and warrants, net of par value of shares issued
Cost of private placement of common stock and warrants
Reclassification of warrants liability to equity (2014 Pipe)
Other Rounding			(200)
Net loss				(1,874,500)	(1,874,500)
Ending balance at Sep. 30, 2016		$ 14,700	$ 78,491,300	$ (82,471,400)	$ (3,965,400)
Ending balance, shares at Sep. 30, 2016		9,804,462

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash Flows Provided By (Used In) Operating Activities:
Net Loss	$ (1,874,500)	$ (3,367,400)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	76,200	252,700
Write-down of capitalized purchased technology	15,500
Stock-based compensation expense	303,400	637,600
Company payment of employee taxes for stock-based compensation	(2,700)	(11,900)
Change in fair value of derivative instruments - warrants	(29,300)	(126,900)
Accretion of warrants liability for consulting services	(2,300)	(12,300)
Changes in severance liability	(5,900)	14,800
Changes in deferred rent	23,200	(22,200)
Changes to allowance for doubtful accounts	(12,000)	(16,900)
Revenue deferred to future periods	1,955,700	2,272,600
Recognition of deferred revenue	(2,478,800)	(2,844,600)
Gain on disposal of fixed assets	(3,200)
Interest accrued for capital lease	800	1,400
Changes in operating assets and liabilities:
Accounts receivable	296,400	1,773,900
Prepaid expenses	40,900	(26,300)
Accounts payable and accrued expenses	(127,300)	47,500
Deposit liability		81,400
Other assets		(9,900)
Other liabilities	392,900
Net Cash Used in Operating Activities	(1,431,000)	(1,356,500)
Cash Flows Provided By (Used In) Investing Activities:
Proceeds from sale of equipment	23,300
Capital expenditures		(5,100)
Capitalized software development costs		(12,000)
Net Cash Provided By (Used In) Investing Activities	23,300	(17,100)
Cash Flows Provided By (Used In) Financing Activities:
Proceeds from exercise of employee stock options	1,500	4,900
Proceeds from private placement of common stock and warrants		2,550,500
Payment for capital lease	(7,000)	(7,100)
Net Cash Provided By (Used In) Financing Activities	(5,500)	2,548,300
Net Increase (Decrease) in Cash	(1,413,200)	1,174,700
Cash - Beginning of Period	1,777,300	1,557,100
Cash - End of Period	$ 364,100	$ 2,731,800

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	1. Basis of Presentation The unaudited condensed consolidated financial statements include the accounts of hopTo Inc. and its subsidiaries (collectively, “we”, “us” ,”our” or the “Company”); significant intercompany accounts and transactions are eliminated upon consolidation. The unaudited condensed consolidated financial statements included herein have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) applicable to interim financial information and the rules and regulations promulgated by the Securities and Exchange Commission (the “SEC”). Accordingly, such unaudited condensed consolidated financial statements do not include all information and footnote disclosures required in annual financial statements. The unaudited condensed consolidated financial statements included herein reflect all adjustments, which include only normal, recurring adjustments, that are, in our opinion, necessary to state fairly the results for the periods presented. This Quarterly Report on Form 10-Q should be read in conjunction with our audited consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2015, which was filed with the SEC on March 30, 2016 (“2015 10-K Report”). The interim results presented herein are not necessarily indicative of the results of operations that may be expected for the full fiscal year ending December 31, 2016 or any future period.

Going Concern and Management's

Going Concern and Management's Liquidity Plans	9 Months Ended
	Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Going Concern and Management's Liquidity Plans	2. Going Concern and Management’s Liquidity Plans The accompanying condensed consolidated financial statements have been prepared in conformity with GAAP, assuming we will continue as a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. Accordingly, the condensed consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the possible inability of the Company to continue as a going concern. We have incurred significant net losses since our inception. For the three and nine months ended September 30, 2016, respectively, the Company incurred losses from operations of $462,000 and $1,874,500. At September 30, 2016, the Company had an accumulated deficit of $82,078,500 and a working capital deficit of $2,440,700. Due to our inability to date to generate meaningful revenue from our hopTo Work business and our most recent estimation that revenue from this product is unlikely in any reasonable time frame, our cash resources will not be sufficient to fund our business for the next 12 months. The Company’s ability to continue as a going concern is dependent on our ability to continue to generate revenue from our legacy GO-Global business and to raise additional capital through the issuance of new equity, debt financing, or from the sale of certain assets to meet short and long-term operating requirements. If the Company raises additional funds through the issuance of equity or convertible debt securities, the percentage ownership of our current shareholders could be reduced, and such securities might have rights, preferences or privileges senior to the Company’s common stock. Additional financing may not be available upon acceptable terms, or at all. If adequate funds are not available or are not available on acceptable terms, the Company may not be able to take advantage of prospective business endeavors or opportunities, which could significantly and materially restrict our operations. We are continuing to pursue external financing alternatives to improve our working capital position. If the Company is unable to obtain the necessary capital, the Company may have to cease operations. These factors raise substantial doubt about our ability to continue as a going concern. In order to maintain operations, we previously implemented significant expense reductions, including a limited number of employee layoffs, and continue to implement further costs and employment reductions. During the three month period ended September 30, 2016, our CEO and CFO voluntarily agreed with our board of directors to defer 50% of their salary beginning September 1, 2016 until such time as the Company can reasonably pay such compensation upon approval by the board of directors. Although maintaining our SEC filing status is a significant expense, we are considering all options to preserve value for shareholders, including potentially suspending or terminating our filing status, however we have not made any decision to do so. We have worked extensively to explore additional sources of capital including the issuance of new shares, securing debt financing, and the sale of assets including certain software products and patents. Although this process is ongoing and we are in active discussions with multiple parties, there is no guarantee that they will result in transactions that are sufficient to provide the Company with the required liquidity to remove the substantial doubt as to our ability to continue as a going concern. We are also in discussions with some parties about the possibility of other strategic transactions although there is no guarantee that these discussions will result in an actual transaction. The accompanying condensed consolidated financial statements do not include any adjustments that may result from the outcome of the uncertainties set forth above.

Significant Accounting Policies

Significant Accounting Policies	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Significant Accounting Policies	3. Significant Accounting Policies Use of Estimates The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. These estimates include: the amount of stock-based compensation expense; the allowance for doubtful accounts; the estimated lives, valuation, and amortization of intangible assets (including capitalized software); depreciation of long-lived assets; valuation of warrants; post-employment benefits, and accruals for liabilities. While we believe that such estimates are fair, actual results could differ materially from those estimates. Revenue Recognition We market and license our products indirectly through channel distributors, independent software vendors (“ISVs”), value-added resellers (“VARs”) (collectively, “resellers”) and directly to corporate enterprises, governmental and educational institutions and others. Our product licenses are perpetual. We also separately sell intellectual property licenses, maintenance contracts, which are comprised of license updates and customer service access, as well as other products and services. Software license revenues are recognized when: ● Persuasive evidence of an arrangement exists, (i.e., when we sign a non-cancellable license agreement wherein the customer acknowledges an unconditional obligation to pay, or upon receipt of the customer’s purchase order), and ● Delivery has occurred or services have been rendered and there are no uncertainties surrounding product acceptance (i.e., when title and risk of loss have been transferred to the customer, which occurs when the media containing the licensed program(s) is provided to a common carrier or, in the case of electronic delivery, when the customer is given access to the licensed program(s)), and ● The price to the customer is fixed or determinable, as typically evidenced in a signed non-cancellable contract, or a customer’s purchase order, and ● Collectability is probable. If collectability is not considered probable, revenue is recognized when the fee is collected. Revenue recognized on software arrangements involving multiple deliverables is allocated to each deliverable based on vendor-specific objective evidence (“VSOE”) or third party evidence of the fair values of each deliverable; such deliverables include licenses for software products, maintenance, private labeling fees, and customer training. We limit our assessment of VSOE for each deliverable to either the price charged when the same deliverable is sold separately or the price established by management having the relevant authority to do so, for a deliverable not yet sold separately. If sufficient VSOE of the fair value does not exist so as to permit the allocation of revenue to the various elements of the arrangement, all revenue from the arrangement is deferred until such evidence exists or until all elements are delivered. If VSOE of the fair value does not exist, and the only undelivered element is maintenance, then we recognize revenue on a ratable basis. If VSOE of the fair value of all undelivered elements exists but does not exist for one or more delivered elements, then revenue is recognized using the residual method. Under the residual method, the fair value of the undelivered elements is deferred and the remaining portion of the arrangement fee is recognized as revenue. Certain resellers (“stocking resellers”) purchase product licenses that they hold in inventory until they are resold to the ultimate end user (an “inventory stocking order”). At the time that a stocking reseller places an inventory stocking order, no product licenses are shipped by us to the stocking reseller; rather, the stocking reseller’s inventory is credited with the number of licenses purchased and the stocking reseller can resell (issue) any number of licenses from their inventory at any time. Upon receipt of an order to issue a license(s) from a stocking reseller’s inventory (a “draw down order”), we will ship the license(s) in accordance with the draw down order’s instructions. We defer recognition of revenue from inventory stocking orders until the underlying licenses are sold and shipped to the end user, as evidenced by the receipt and fulfillment of the stocking reseller’s draw down order, assuming all other revenue recognition criteria have been met. There are no rights of return granted to resellers or other purchasers of our software products. Revenue from maintenance contracts is recognized ratably over the related contract period, which generally ranges from one to five years. All of our software licenses are denominated in U.S. dollars. Deferred Rent The leases for both the Company’s current office in Campbell, California and the subleased former office in Campbell, California contain free rent and predetermined fixed escalations in our minimum rent payments (See Note 13). Rent expense related to these leases is recognized on a straight-line basis over the terms of the leases. Any difference between the straight-line rent amounts and amounts payable under the leases is recorded as part of deferred rent in current or long-term liabilities, as appropriate. The monthly rent payments due to the Company for the sublease of the office at 1919 S. Bascom Avenue fully offsets the rent payments due under the Company’s lease for that space. Incentives that we received upon entering into the S. Bascom Avenue lease agreement are recognized on a straight-line basis as a reduction to rent over the term of the lease. We record the unamortized portion of these incentives as a part of deferred rent in current or long-term liabilities, as appropriate. Postemployment Benefits (Severance Liability) Nonretirement postemployment benefits, including salary continuation, supplemental unemployment benefits, severance benefits, disability-related benefits and continuation of benefits such as health care benefits, are recognized as a liability and a loss when it is probable that the employee(s) will be entitled to such benefits and the amount can be reasonably estimated. An aggregate of $0 and $5,900 is reported as a severance liability, at September 30, 2016 and December 31, 2015, respectively. Software Development Costs We capitalize software development costs incurred from the time technological feasibility of the software is established until the software is available for general release, in accordance with GAAP. Such capitalized costs are subsequently amortized as costs of revenue over the shorter of three years or the remaining estimated useful life of the product. See discussion at Note 11 for an impairment charge taken during the nine month period ended September 30, 2016. Research and development costs and other computer software maintenance costs related to the software development are expensed as incurred. Long-Lived Assets Long-lived assets are assessed for possible impairment whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable, whenever we have committed to a plan to dispose of the assets or, at a minimum, annually. Typically, for long-lived assets to be held and used, measurement of an impairment loss is based on the fair value of such assets, with fair value being determined based on appraisals, current market value, comparable sales value, and discounted future cash flows, among other variables, as appropriate. Assets to be held and used (which assets are affected by an impairment loss) are depreciated or amortized at their new carrying amount over their remaining estimated life; assets to be sold or otherwise disposed of are not subject to further depreciation or amortization. During the three month and nine month period ended September 30, 2016 respectively, we determined that an impairment of $0 and $15,500 existed with certain capitalized software development costs associated with our hopTo Work product and recognized that cost as part of cost of revenue. No such impairment charge was recorded during either of the three or nine-month periods ended September 30, 2015. Allowance for Doubtful Accounts We maintain an allowance for doubtful accounts that reflects our best estimate of potentially uncollectible trade receivables. The allowance is based on assessments of the collectability of specific customer accounts and the general aging and size of the accounts receivable. We regularly review the adequacy of our allowance for doubtful accounts by considering such factors as historical experience, credit worthiness, and current economic conditions that may affect a customer’s ability to pay. We specifically reserve for those accounts deemed uncollectible. We also establish, and adjust, a general allowance for doubtful accounts based on our review of the aging and size of our accounts receivable. The following table sets forth the details of the Allowance for Doubtful Accounts for the three-month periods ended September 30, 2016 and 2015: Beginning Balance Charge Offs Recoveries Provision Ending Balance 2016 $ 14,900 $ — $ — $ (9,600 ) $ 5,300 2015 15,900 — — (200 ) 15,700 The following table sets forth the details of the Allowance for Doubtful Accounts for the nine-month periods ended September 30, 2016 and 2015 Beginning Balance Charge Offs Recoveries Provision Ending Balance 2016 $ 17,300 $ — $ — $ (12,000 ) $ 5,300 2015 32,600 — — 16,900 15,700 Concentration of Credit Risk For the three and nine-month periods ended September 30, 2016 and 2015 respectively, we considered the customers listed in the following tables to be our most significant customers. The tables set forth the percentage of sales attributable to each customer during the periods presented, and the respective customer’s ending accounts receivable balance as a percentage of reported accounts receivable, net, as of September 30, 2016 and 2015. Three Months Ended September 30, 2016 As of September 30, 2016 Three Months Ended September 30, 2015 As of September 30, 2015 Customer Sales Accounts Receivable Sales Accounts Receivable Alcatel-Lucent 3.2 % 13.9 % 8.4 % 21.1 % Elosoft 10.8 % 10.4 % 8.1 % 5.0 % GE 5.8 % 16.0 % 2.0 % 4.3 % IDS 6.6 % 0.0 % 13.5 % 0.0 % Imagination Technology 1.7 % 8.4 % 1.0 % 2.5 % KitASP 5.3 % 2.7 % 2.8 % 17.5 % Raytheon 5.7 % 0.0 % 0.0 % 0.0 % SAI SL 2.0 % 7.8 % 0.2 % 0.6 % Thermo LabSystems 4.6 % 8.9 % 2.5 % 3.5 % Uniface 6.0 % 16.5 % 1.3 % 2.9 % Total 51.7 % 84.6 % 39.8 % 57.4 % Nine Months Ended September 30, 2016 As of September 30, 2016 Nine Months Ended September 30, 2015 As of September 30, 2015 Customer Sales Accounts Receivable Sales Accounts Receivable Alcatel-Lucent 5.0 % 13.9 % 5.6 % 21.1 % Centric 5.4 % 3.8 % 4.5 % 11.6 % Elosoft 8.9 % 10.4 % 11.4 % 5.0 % GE 4.6 % 16.0 % 1.9 % 4.3 % Imagination Technology 0.5 % 8.4 % 0.3 % 2.5 % SAI 1.0 % 7.8 % 0.6 % 0.6 % Thermo LabSystems 5.4 % 8.9 % 2.6 % 3.5 % Uniface 6.1 % 16.5 % 6.4 % 2.9 % Total 36.9 % 85.7 % 33.3 % 51.5 % Derivative Financial Instruments We currently do not have a material exposure to either commodity prices or interest rates; accordingly, we do not currently use derivative instruments to manage such risks. We evaluate all of our financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. All derivative financial instruments are recognized in the balance sheet at fair value. Changes in fair value are recognized in earnings if they are not eligible for hedge accounting or in other comprehensive income if they qualify for cash flow hedge accounting. Fair Value of Financial Instruments The fair value of our accounts receivable, accounts payable and accrued liabilities approximate their carrying amounts due to the relative short maturities of these items. The fair value of warrants at issuance and for those recorded as a liability at each reporting date are determined in accordance with the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) 820, “Fair Value Measurement,” ● Level 1: Defined as observable inputs, such as quoted (unadjusted) prices in active markets for identical assets or liabilities. ● Level 2: Defined as observable inputs other than quoted prices included in Level 1. This includes quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. ● Level 3: Defined as unobservable inputs to the valuation methodology that are supported by little or no market activity and that are significant to the measurement of the fair value of the assets or liabilities. Level 3 assets and liabilities include those whose fair value measurements are determined using pricing models, discounted cash flow methodologies or similar valuation techniques, as well as significant management judgment or estimation. As of September 30, 2016, all of our Warrants Liability reported at fair value was categorized as Level 3 inputs (See Note 5). Recent Accounting Pronouncements In August 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In May 2016, the FASB issued ASU 2016-12— Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients In April 2016, the FASB issued ASU 2016-10— Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing to clarify certain aspects of ASU 2014-09 In March 2016, the FASB issued ASU 2016-09— Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting In March 2016, the FASB issued ASU 2016-08— Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes In August 2015, FASB issued ASU No. 2015-14 “ Revenue from Contracts with Customers (Topic 606)” – Deferral of the Effective Date In April 2015, FASB issued ASU No. 2015-05 “ Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement” In August 2014, FASB issued ASU No. 2014-15 “ Preparation of Financial Statements - Going Concern (Subtopic 205-40)” In June 2014, FASB issued ASU No. 2014-12 “Compensation – Stock Compensation (Topic 718)” In May 2014, FASB issued ASU No. 2014-09 “ Revenue from Contracts with Customers (Topic 606)” 1. Removes inconsistencies and weaknesses in revenue requirements. 2. Provides a more robust framework for addressing revenue issues. 3. Improves comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets. 4. Provides more useful information to users of financial statements through improved disclosure requirements. 5. Simplifies the preparation of financial statements by reducing the number of requirements to which an entity must refer. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within such annual period. Early adoption is not permitted. We are currently evaluating this ASU in order to determine whether or not its adoption will have a material impact on our results of operations, cash flows or financial position. In April 2014, FASB issued ASU No. 2014-08 “Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360)” “Presentation of Financial Statements – Discontinued Operations”,

Property and Equipment

Property and Equipment	9 Months Ended
	Sep. 30, 2016
Property, Plant and Equipment [Abstract]
Property and Equipment	4. Property and Equipment Property and equipment was: September 30, 2016 December 31, 2015 Equipment $ 258,700 $ 313,700 Furniture 190,600 233,900 Leasehold improvements 167,600 167,600 616,900 715,200 Less: accumulated depreciation and amortization 455,300 462,700 $ 161,600 $ 252,500 Aggregate property and equipment depreciation and amortization expense was $21,200 and $70,800 during the three-month period and nine-month ended September 30, 2016, respectively. During the nine-month period ended September 30, 2016, we disposed of equipment and furniture with a combined net book value of $20,100.

Liability Attributable to Warra

Liability Attributable to Warrants	9 Months Ended
	Sep. 30, 2016
Other Liabilities Disclosure [Abstract]
Liability Attributable to Warrants	5. Liability Attributable to Warrants On January 7, 2014, we entered into a securities purchase agreement (the “SPA”) with a limited number of institutional investors, pursuant to which we issued and sold for cash an aggregate 723,333 shares of our common stock at a purchase price of $4.50 per share (See Note 12) (the “2014 Transaction”). We also issued warrants to the investors for no additional consideration to purchase an aggregate 376,667 shares of our common stock at an exercise price of $6.00 per share from January 7, 2014 through January 7, 2019. Under certain conditions of the SPA that were to expire no later than January 7, 2015, we could have been required to issue a variable number of additional warrants to the investors at a below-market value exercise price. Accordingly, we have concluded that the warrants issued to the investors were not indexed to our common stock; therefore, the fair value of these warrants was recorded as a liability of $1,356,000 on January 7, 2014 on our Balance Sheet. Since these conditions did not occur as of January 7, 2015, we have reclassified the warrant from liability to equity. Using a binomial pricing model, we calculated the fair value of the warrants issued to the investors on January 7, 2015 to be $407,300. We used the following assumptions in the binomial pricing model to derive the fair value: estimated volatility 113%; annualized forfeiture rate 0%; expected term 4.1 years; estimated exercise factor 3.5; risk free interest rate 1.20; and dividends 0. Changes in fair value of the warrants liability are recognized in other income (expense), except for changes in the fair value of the warrants issued to ipCapital Group, Inc. (“ipCapital”), which are recognized as a component of general and administrative expense in the condensed consolidated statement of operations. We used the exercise price of the warrants, as well as the fair market value of our common stock, to determine the fair value of our warrants. The exercise price for warrants issued in conjunction with a 2011 transaction, including those issued to the placement agent, was either $3.00 or $3.90 per share, and was $3.90 per share for the warrants issued to ipCapital. The warrants issued to the placement agent included anti-dilution provisions for repricing of the warrants in the event that future issuances of stock by hopTo met certain conditions. The 2015 Private Placement (Note 12) met those conditions and resulted in the placement agent warrants being repriced from $3.00 and $3.90 to $2.55 and $3.30, respectively. During the three-month period ended September 30, 2016, the liability warrants for the 2011 transaction expired. The fair market value of our common stock was $0.08 and $0.10 per share as of September 30, 2016 and 2015, respectively. We used a binomial pricing model to determine the fair value of our warrants liability at September 30, 2016 and December 31, 2015, using the following assumptions: Estimated Volatility Annualized Forfeiture Rate Expected Term (Years) Estimated Exercise Factor Risk-Free Interest Rate Dividends ipCapital September 30, 2016 378 % — 0.09 1.1 0.20 % — December 31, 2015 127 % — 0.79 4.0 0.61 % — The following table is a reconciliation of the warrants liability measured at fair value using significant unobservable inputs (Level 3) for the nine months ended September 30, 2016: Warrants liability – December 31, 2015 fair value $ 31,600 Change in fair value of warrant liability recorded in other income (29,400 ) Change in fair value of warrant liability recorded in general and administrative expense (2,300 ) Warrants liability – September 30, 2016 fair value $ — The following tables reconcile the number of warrants outstanding for the periods indicated: For the Three-Month Period Ended September 30, 2016 Beginning Outstanding Issued Exercised Cancelled / Forfeited Ending Outstanding 2011 Transaction 686,833 — — 686,833 — 2014 Transaction 376,667 — — — 376,667 Exercise Agreement 300,000 — — — 300,000 ipCapital 26,667 — — — 26,667 Consultant Warrant 11,285 — — — 11,285 Offer to Exercise 10,167 — — — 10,167 1,411,619 — — 686,833 724,786 For the Three-Month Period Ended September 30, 2015 Beginning Outstanding Issued Exercised Cancelled / Forfeited Ending Outstanding 2011 Transaction 686,833 — — — 686,833 2014 Transaction 376,667 — — — 376,667 Exercise Agreement 300,000 — — — 300,000 ipCapital 26,667 — — — 26,667 Consultant Warrant 11,285 — — — 11,285 Offer to Exercise 10,167 — — — 10,167 1,411,619 — — — 1,411,619 For the Nine-Month Period Ended September 30, 2016 Beginning Outstanding Issued Exercised Cancelled / Forfeited Ending Outstanding 2011 Transaction 686,833 — — 686,833 — 2014 Transaction 376,667 — — — 376,667 Exercise Agreement 300,000 — — — 300,000 ipCapital 26,667 — — — 26,667 Consultant Warrant) 11,285 — — — 11,285 Offer to Exercise 10,167 — — — 10,167 1,411,619 — — 686,833 724,786 For the Nine-Month Period Ended September 30, 2015 Beginning Outstanding Issued Exercised Cancelled / Forfeited Ending Outstanding 2011 Transaction 686,833 — — — 686,833 2014 Transaction 376,667 — — — 376,667 Exercise Agreement 300,000 — — — 300,000 ipCapital 26,667 — — — 26,667 Consultant Warrant 11,285 — — — 11,285 Offer to Exercise 10,167 — — — 10,167 1,411,619 — — — 1,411,619

Severance Liability

Severance Liability	9 Months Ended
	Sep. 30, 2016
Related Party Transactions [Abstract]
Severance Liability	6. Severance Liability In August of 2015 we agreed to provide a terminated employee a lump sum payment of $15,000 and six months of medical coverage payments which ended on March 2, 2016. As of September 30, 2016 and December 31, 2015, an aggregate of $0 and $5,900, respectively, remained outstanding associated with the severance liabilities. During the nine-month period ended September 30, 2016 and 2015, we made total payments of $5,900 and $0, respectively, to individuals whom these severance amounts were due.

Deferred Rent

Deferred Rent	9 Months Ended
	Sep. 30, 2016
Deferred Revenue Disclosure [Abstract]
Deferred Rent	7. Deferred Rent We amended our office lease during 2013. On February 1, 2014, we moved our corporate offices to a different building within the same office complex owned and operated by our landlord on South Bascom Avenue in Campbell, California, where our corporate offices had been located prior to February 1, 2014. Since the new space is controlled by the same landlord, we considered the lease amendment to be a modification to our preexisting lease; accordingly, we are amortizing the remaining balance in deferred rent immediately prior to February 1, 2014 over the remaining term of the modified amended lease. Additionally, our landlord provided us with $106,600 of leasehold improvements on the new space that we are amortizing over the remaining term of the amended lease. All of the prior leasehold improvements that had not been previously amortized were accelerated and recognized in their entirety from the time of the amendment through January 2014, prior to the move. On August 11, 2015, we entered into a sublease agreement to sublease the entirety of the South Bascom office space to a third party. The term of the sublease extends through the end of our office lease term for that space and the monthly rent payments due to hopTo fully offset the monthly rent payments due to the landlord under hopTo’s lease for that space. On August 24, 2015, we entered into a new office lease for our corporate headquarters in Campbell, California which became effective on October 1, 2015, is better suited to our California operations and results in significant monthly savings. We were required to pre-pay a portion of the lease commitment in the form of a deposit which was recorded as deferred rent during 2015. As of September 30, 2016 deferred rent was: Component Current Liabilities Long-Term Liabilities Total Deferred rent expense $ 21,900 $ (33,700 ) $ (11,800 ) Deferred rent benefit 39,700 43,000 82,700 $ 61,600 $ 9,300 $ 70,900 As of December 31, 2015 deferred rent was: Component Current Liabilities Long-Term Liabilities Total Deferred rent expense $ (18,700 ) $ (46,100 ) $ (64,800 ) Deferred rent benefit 39,700 72,800 112,500 $ 21,000 $ 26,700 $ 47,700 Deferred rent expense represents the remaining balance of the aggregate free rent we received from our landlord and escalations that are being recognized over the life of the lease as a component of rent expense. Deferred rent benefit relates to the unamortized portion of the leasehold improvements provided to us by our landlord (i.e., incentives) that we are recognizing on a straight-line basis as a reduction to rent expense over the term of the lease.

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	8. Stock-Based Compensation The following table summarizes the stock-based compensation expense, net of amounts capitalized, we recorded in our Unaudited Condensed Consolidated Statements of Operations for the three and nine-month periods ended September 30, 2016 and 2015, respectively, by classification: Three Months Ended September 30, Nine Months Ended September 30, Statement of Operations Classification 2016 2015 2016 2015 Costs of revenue $ 2,200 $ 2,100 $ 5,400 $ 7,100 Selling and marketing expense 4,600 75,600 69,000 134,400 General and administrative expense 40,500 121,700 135,500 420,300 Research and development expense 26,400 25,800 93,500 75,800 $ 73,700 $ 225,200 $ 303,400 $ 637,600 The following table presents summaries of the status and activity of our stock option awards for the three-month period ended September 30, 2016. Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Terms (Years) Aggregate Intrinsic Value Outstanding – June 30, 2016 696,189 $ 2.63 Granted — Exercised (1,800 ) 0.81 Forfeited or expired (6,667 ) 2.7 Outstanding – September 30, 2016 687,722 $ 2.63 6.22 — The following table presents summaries of the status and activity of our stock option awards for the nine-month period ended September 30, 2016. Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Terms (Years) Aggregate Intrinsic Value Outstanding – December 31, 2015 705,990 $ 2.63 Granted — Exercised (1,800 ) 0.81 Forfeited or expired (16,468 ) 2.81 Outstanding – September 30, 2016 687,722 $ 2.63 6.22 — Of the options outstanding as of September 30, 2016, 574,154 were vested, 113,290 were estimated to vest in future periods and 278 were estimated to be forfeited prior to their vesting. As of September 30, 2016, there was approximately $26,100 of total unrecognized compensation cost, net of estimated forfeitures, related to unvested stock options. Such cost is expected to be recognized over a weighted-average period of approximately nine months. All options are exercisable immediately upon grant. Options vest, ratably over a 33-month period commencing in the fourth month after the grant date. We have the right to repurchase common stock issued upon the exercise of an option upon an optionee’s termination of service to us prior to full vesting at the option’s exercise price. The following table presents summaries of the status and activity of our restricted stock awards for the three-month period ended September 30, 2016. We include the common stock underlying the restricted stock award in shares outstanding once such common stock has vested and the restriction has been removed (“releases” or “released”). The common stock vests ratably, over a 33-month period commencing in the fourth month after the award date. Number of Shares Weighted Average Grant Date Fair Value Weighted Average Remaining Recognition Period (Years) Unrecognized Compensation Cost Remaining Unreleased – June 30, 2016 106,901 $ 2.06 Awarded - - Released (40,880 ) 2.24 Forfeited (66,021 ) 1.91 Outstanding – September 30, 2016 — — — — The following table presents summaries of the status and activity of our restricted stock awards for the nine-month period ended September 30, 2016. Number of Shares Weighted Average Grant Date Fair Value Weighted Average Remaining Recognition Period (Years) Unrecognized Compensation Cost Remaining Unreleased – December 31, 2015 106,586 $ 2.31 Awarded 35,000 1.65 Released (71,429 ) 2.31 Forfeited (70,157 ) 1.91 Outstanding – September 30, 2016 — — — — As of September 30, 2016, there was no unrecognized compensation cost, net of estimated forfeitures, related to unreleased restricted stock awards. All unvested shares were accelerated and released to employees during the three month period ended September 30, 2016.

Revenue

Revenue	9 Months Ended
	Sep. 30, 2016
Revenue Tables
Revenue	9. Revenue Revenue for the three-month periods ended September 30, 2016 and 2015 was: 2016 Over (Under) 2015 Revenue 2016 2015 Dollars Percent Software Licenses Windows $ 222,500 $ 373,500 $ (151,000 ) -40.4 % UNIX/Linux 64,000 86,700 (22,700 ) -26.2 % 286,500 460,200 (173,700 ) -37.7 % Software Service Fees Windows 444,700 484,000 (39,300 ) -8.1 % UNIX/Linux 149,400 175,000 (25,600 ) -14.6 % 594,100 659,000 (64,900 ) -9.8 % Other 17,900 9,600 8,300 86.5 % Total Revenue $ 898,500 $ 1,128,800 $ (230,300 ) -20.4 % Revenue for the nine-month periods ended September 30, 2016 and 2015 was: 2016 Over (Under) 2015 Revenue 2016 2015 Dollars Percent Software Licenses Windows $ 774,200 $ 1,429,800 $ (665,600 ) -45.9 % UNIX/Linux 209,200 500,800 (291,600 ) -58.2 % 983,400 1,930,600 (947,200 ) -49.1 % Software Service Fees Windows 1,367,200 1,452,000 (84,800 ) -5.8 % UNIX/Linux 473,700 542,200 (68,500 ) -12.6 % 1,840,900 1,994,200 (153,300 ) -7.7 % Other 40,100 33,900 6,200 18.3 % Total Revenue $ 2,864,400 $ 3,958,700 $ (1,094,300 ) -27.6 %

Cost of Revenue

Cost of Revenue	9 Months Ended
	Sep. 30, 2016
Cost of Revenue [Abstract]
Cost of Revenue	10. Cost of Revenue Cost of revenue for the three-month periods ended September 30, 2016 and 2015 was: 2016 Over (Under) 2015 2016 2015 Dollars Percent Software service costs $ 2,100 $ 43,900 $ (41,800 ) -95.2 % Software product costs 6,200 65,000 (58,800 ) -90.5 % $ 8,300 $ 108,900 $ (100,600 ) -92.4 % Cost of revenue for the nine-month periods ended September 30, 2016 and 2015 was: 2016 Over (Under) 2015 2016 2015 Dollars Percent Software service costs $ 78,100 $ 128,500 $ (50,400 ) -39.2 % Software product costs 51,400 190,700 (139,300 ) -73.0 % $ 129,500 $ 319,200 $ (189,700 ) -59.4 %

Capitalized Software Developmen

Capitalized Software Development Costs	9 Months Ended
	Sep. 30, 2016
Research and Development [Abstract]
Capitalized Software Development Costs	11. Capitalized Software Development Costs Capitalized software development costs consisted of the following: September 30, 2016 December 31, 2015 Software development costs $ 490,400 $ 518,800 Accumulated amortization (490,400 ) (498,000 ) - $ 20,800 Amortization of capitalized software development costs is a component of costs of revenue. Capitalized software development costs amortization aggregated $200 and $5,300 during the three and nine-month periods ended September 30, 2016, respectively, and $54,400 and $162,400 during the three and nine-month periods ended September 30, 2015, respectively. We did not record any capitalized software development costs during the three and nine-month period ended September 30, 2016. We recorded capitalized software development costs of $12,000 during the three and nine-month periods ended September 30, 2015, respectively. During the three and nine month period ended September 30, 2016, we determined that an impairment of $0 and $15,500, respectively, existed with certain capitalized software development cost associated with hopTo Work which may not be monetized during the period in which these costs were scheduled to be amortized. These impairment costs are in addition to the amortization costs detailed above.

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2016
Equity [Abstract]
Stockholders' Equity	12. Stockholders’ Equity 2015 Private Placement On July 24, 2015 we entered into a securities purchase agreement and subscription agreement, pursuant to which we issued and sold for cash an aggregate of 2,105,919 shares of our common stock at a purchase price of $1.21 per share. We derived gross proceeds of $2,550,500 from this placement. 2014 Transaction During the three-month period ended March 31, 2014, we issued and sold for cash an aggregate 753,333 shares of our common stock at a purchase price of $4.50 per share in the 2014 Transaction that resulted in gross proceeds of $3,390,000 (See Note 5). The 2014 Transaction was recorded into the financial statements as follows: Gross cash proceeds $ 3,390,000 Less: gross proceeds allocated to warrants liability – investors (1,356,000 ) Gross proceeds allocated to additional paid-in capital and common stock 2,034,000 Less: cash issuance costs – legal fees (20,000 ) Recorded in additional paid-in capital and common stock $ 2,014,000 In conjunction with the 2014 Transaction, we recorded a warrants liability of $1,356,000 as of January 7, 2014 on our Balance Sheet. Certain conditions under the SPA which expired on January 7, 2015 would have required us to issue additional warrants at below-market value exercise price (see Note 5). These conditions did not occur and ended as of January 7, 2015. Therefore, we have reclassified the related liability to equity as of January 7, 2015 on our Balance Sheet.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	13. Commitments and Contingencies On February 1, 2014, we relocated our corporate offices to a larger suite within our landlord’s office complex on South Bascom Avenue in Campbell, California. We are currently leasing 10,659 square feet under a five-year lease that, unless renewed, will expire in October 2018. On August 11, 2015 we entered into a sublease agreement to sublease the entirety of the South Bascom office space to a third party. The term of the sublease extends from November 1, 2015 through the end of our office lease term for that space in October, 2018. The monthly rent payments due to hopTo under this sublease fully offset the monthly rent payments due to the landlord under hopTo’s lease for that space. On August 24, 2015, we entered into a new office lease for our corporate headquarters in Campbell, California which is better suited to our California operations and results in significant monthly savings. The term of this lease is from October 1, 2015 through September 30, 2018. The following table sets forth the net minimum lease payments we will be required to make throughout the remainder of these leases: Year Amount Remainder of 2016 $ 28,400 2017 114,300 2018 68,300 $ 211,000 During the three-month period ended September 30, 2016, our CEO and CFO voluntarily agreed with our board of directors to defer 50% of their salary beginning September 1, 2016 until such time as the Company can reasonably pay such compensation upon approval by the board of directors. There is currently no definitive schedule for such payments. The deferred salaries are recorded as a component of accounts payable and accrued expenses on the Condensed Consolidated Balance Sheet. During the three and nine-month periods ended September 30, 2016, we reported non-cash expense of $392,900 related to potential liquidated damages resulting from delays in filing registration statements for shares and shares underlying warrants for certain of the private placements that the company closed in prior periods. There were no such expenses recorded in the comparable prior year period. We are in the process of seeking waivers from shareholders for such liquidated damages. The potential liquidated damages is reported as other current liabilities on the condensed consolidated balance sheet and as a component of general and administrative expense on the condensed consolidated statements of operations.

Supplemental Disclosure of Cash

Supplemental Disclosure of Cash Flow Information	9 Months Ended
	Sep. 30, 2016
Supplemental Cash Flow Elements [Abstract]
Supplemental Disclosure of Cash Flow Information	14. Supplemental Disclosure of Cash Flow Information We disbursed $800 and $1,400 for the payment of interest expense during the nine-month periods ended September 30, 2016 and 2015, respectively. We disbursed $2,300 and $3,600 for the payment of income taxes during the nine-month periods ended September 30, 2016 and 2015, respectively. Such disbursement was made for the payment of foreign income taxes related to the operation of our Israeli subsidiary, GraphOn Research Labs Ltd. During the nine-month period ended September 30, 2016, we reduced our warrants liability by $31,600, which was recorded in the Condensed Consolidated Statement of Operations. Such reduction reflected the aggregate fair value adjustments we recorded during such period and in addition to reclassified our 2014 PIPE warrant to equity. No cash was disbursed in conjunction with these items (See Note 5).

Earnings (Loss) Per Share

Earnings (Loss) Per Share	9 Months Ended
	Sep. 30, 2016
Earnings Per Share [Abstract]
Earnings (Loss) Per Share	15. Earnings (Loss) Per Share Earnings or loss per share is calculated by dividing the net income or loss for the period by the weighted average number of shares of common stock outstanding during the period. Diluted earnings or loss per share (“Diluted EPS”) is calculated by dividing the net income or loss for the period by the total of the weighted average number of shares of common stock outstanding during the period plus the effects of any dilutive securities. Diluted EPS considers the impact of potentially dilutive securities except in periods in which there is a loss because the inclusion of such potential shares of common stock would have an anti-dilutive effect. During all periods presented in our Condensed Consolidated Statements of Operations, potentially dilutive securities included shares of common stock potentially issuable upon exercise of stock options, release of unvested restricted stock awards and exercise of warrants. Diluted EPS excludes the impact of potential issuance of shares of common stock related to our stock options in periods in which the exercise price of the stock option is greater than the average market price of our common stock during such periods. For the three and nine-month periods ended September 30, 2016 and for the three and nine-month periods ended September 30, 2015, 1,412,508 and 33,871,874 shares of common stock equivalents, respectively, were excluded from the computation of dilutive loss per share since their effect would be anti-dilutive.

Segment Information

Segment Information	9 Months Ended
	Sep. 30, 2016
Segment Reporting [Abstract]
Segment Information	16. Segment Information The Company’s operations have historically been conducted and reported in two segments, GO-Global and hopTo, each representing a specific product line and dedicated operating resources. During the fourth quarter of 2014, the Company developed its hopTo Work product and go to market strategy, and beginning in January of 2015, it reorganized to a functional organization structure with consolidated decision-making authority over engineering, product management, sales and marketing resources. Resources in these functional departments are now shared for the development, sales and support of both the GO-Global and hopTo products. The GO-Global and hopTo Work products also have similar target customers, distribution channels, and common reseller partners. Beginning with the three-month period ended March 31, 2015, the Company will no longer report financial results in two segments. Software revenue and services revenue for the hopTo Work product will be included in the Windows software and Windows services revenue, respectively. Revenue by country for the three-month and nine-month periods ended September 30, 2016 and 2015 was as follows: Three Months Ended September 30, Nine Months Ended September 30, Revenue by Country 2016 2015 2016 2015 United States $ 370,800 $ 616,800 $ 1,158,100 $ 1,368,300 Brazil 122,900 246,100 418,100 415,600 Other Countries 404,800 265,900 1,288,200 2,174,800 Total $ 898,500 $ 1,128,800 $ 2,864,400 $ 3,958,700

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2016
Related Party Transactions [Abstract]
Related Party Transactions	17. Related Party Transactions ipCapital Group, Inc. On October 11, 2011, we engaged ipCapital Group, Inc. (“ipCapital”), an affiliate of John Cronin, who is one of our directors, to assist us in the execution of our strategic decision to significantly strengthen, grow and commercially exploit our intellectual property assets. Our engagement agreement with ipCapital, which has been amended three times, affords us the right to request ipCapital to perform a number of diverse services, employing its proprietary processes and methodologies, to facilitate our ability to identify and extract from our current intellectual property base new inventions, potential patent applications, and marketing and licensing opportunities. For the three and nine-month periods ended September 30, 2016 and 2015 there were no services performed, additional charges incurred or payments made to ipCapital under the agreement. In addition to the fees we agreed to pay ipCapital for its services, we issued ipCapital a five-year warrant to purchase up to 26,667 shares of our common stock at an initial price of $3.90 per share. Half of the warrant (13,333 shares) has a time-based vesting condition, with such vesting to occur in three equal annual installments. The vesting installments occurred on October 11, 2012, October 11, 2013 and October 11, 2014, respectively. The remaining 13,333 shares became fully vested upon the completion to our satisfaction of all services that we requested from ipCapital under the engagement agreement, prior to the signing of the amendments. Such performance was deemed satisfactory during 2012. We believe that these fees, together with the issuance of the warrant, constitute no greater compensation than we would be required to pay an unaffiliated person for performing substantially similar services. The exercise price of the warrant issued to ipCapital could be reset to below-market value. Consequently, we have concluded that such warrant is not indexed to our common stock and should be recorded as a liability. We recognize the warrants liability over their vesting period, and in accordance with the liability method of accounting, we re-measure the fair value of the accrued warrants at each balance sheet date and recognize the change in fair value as general and administrative compensation expense (See Note 5). We recognized $(5,800) and $2,000 as a component of general and administrative expense during the three-month periods ended September 30, 2016 and 2015, respectively, and $(2,300) and $12,300 during the nine-month periods ended September 30, 2016 and 2015, respectively, resulting from the change in fair value. ipCapital Licensing Company I, LLC In February 2013, we entered into an IP Brokerage agreement with ipCapital Licensing Company I, LLC (“ipCLC”) (the “IP Brokerage Agreement”). At the time that we entered into this agreement, John Cronin was a partner at ipCLC. He is no longer affiliated with ipCLC. Pursuant to the IP Brokerage Agreement, we engaged ipCLC, on a no-retainer basis, to identify and present us with candidates who may be seeking to acquire a certain limited group of our patents unrelated to our current business strategy. In June 2016, we determined that the IP Brokerage Agreement is no longer in effect since ipCLC no longer exists as an entity.

Significant Accounting Polici24

Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. These estimates include: the amount of stock-based compensation expense; the allowance for doubtful accounts; the estimated lives, valuation, and amortization of intangible assets (including capitalized software); depreciation of long-lived assets; valuation of warrants; post-employment benefits, and accruals for liabilities. While we believe that such estimates are fair, actual results could differ materially from those estimates.
Revenue Recognition	Revenue Recognition We market and license our products indirectly through channel distributors, independent software vendors (“ISVs”), value-added resellers (“VARs”) (collectively, “resellers”) and directly to corporate enterprises, governmental and educational institutions and others. Our product licenses are perpetual. We also separately sell intellectual property licenses, maintenance contracts, which are comprised of license updates and customer service access, as well as other products and services. Software license revenues are recognized when: ● Persuasive evidence of an arrangement exists, (i.e., when we sign a non-cancellable license agreement wherein the customer acknowledges an unconditional obligation to pay, or upon receipt of the customer’s purchase order), and ● Delivery has occurred or services have been rendered and there are no uncertainties surrounding product acceptance (i.e., when title and risk of loss have been transferred to the customer, which occurs when the media containing the licensed program(s) is provided to a common carrier or, in the case of electronic delivery, when the customer is given access to the licensed program(s)), and ● The price to the customer is fixed or determinable, as typically evidenced in a signed non-cancellable contract, or a customer’s purchase order, and ● Collectability is probable. If collectability is not considered probable, revenue is recognized when the fee is collected. Revenue recognized on software arrangements involving multiple deliverables is allocated to each deliverable based on vendor-specific objective evidence (“VSOE”) or third party evidence of the fair values of each deliverable; such deliverables include licenses for software products, maintenance, private labeling fees, and customer training. We limit our assessment of VSOE for each deliverable to either the price charged when the same deliverable is sold separately or the price established by management having the relevant authority to do so, for a deliverable not yet sold separately. If sufficient VSOE of the fair value does not exist so as to permit the allocation of revenue to the various elements of the arrangement, all revenue from the arrangement is deferred until such evidence exists or until all elements are delivered. If VSOE of the fair value does not exist, and the only undelivered element is maintenance, then we recognize revenue on a ratable basis. If VSOE of the fair value of all undelivered elements exists but does not exist for one or more delivered elements, then revenue is recognized using the residual method. Under the residual method, the fair value of the undelivered elements is deferred and the remaining portion of the arrangement fee is recognized as revenue. Certain resellers (“stocking resellers”) purchase product licenses that they hold in inventory until they are resold to the ultimate end user (an “inventory stocking order”). At the time that a stocking reseller places an inventory stocking order, no product licenses are shipped by us to the stocking reseller; rather, the stocking reseller’s inventory is credited with the number of licenses purchased and the stocking reseller can resell (issue) any number of licenses from their inventory at any time. Upon receipt of an order to issue a license(s) from a stocking reseller’s inventory (a “draw down order”), we will ship the license(s) in accordance with the draw down order’s instructions. We defer recognition of revenue from inventory stocking orders until the underlying licenses are sold and shipped to the end user, as evidenced by the receipt and fulfillment of the stocking reseller’s draw down order, assuming all other revenue recognition criteria have been met. There are no rights of return granted to resellers or other purchasers of our software products. Revenue from maintenance contracts is recognized ratably over the related contract period, which generally ranges from one to five years. All of our software licenses are denominated in U.S. dollars.
Deferred Rent	Deferred Rent The leases for both the Company’s current office in Campbell, California and the subleased former office in Campbell, California contain free rent and predetermined fixed escalations in our minimum rent payments (See Note 13). Rent expense related to these leases is recognized on a straight-line basis over the terms of the leases. Any difference between the straight-line rent amounts and amounts payable under the leases is recorded as part of deferred rent in current or long-term liabilities, as appropriate. The monthly rent payments due to the Company for the sublease of the office at 1919 S. Bascom Avenue fully offsets the rent payments due under the Company’s lease for that space. Incentives that we received upon entering into the S. Bascom Avenue lease agreement are recognized on a straight-line basis as a reduction to rent over the term of the lease. We record the unamortized portion of these incentives as a part of deferred rent in current or long-term liabilities, as appropriate.
Postemployment Benefits (severance Liability)	Postemployment Benefits (Severance Liability) Nonretirement postemployment benefits, including salary continuation, supplemental unemployment benefits, severance benefits, disability-related benefits and continuation of benefits such as health care benefits, are recognized as a liability and a loss when it is probable that the employee(s) will be entitled to such benefits and the amount can be reasonably estimated. An aggregate of $0 and $5,900 is reported as a severance liability, at September 30, 2016 and December 31, 2015, respectively.
Software Development Costs	Software Development Costs We capitalize software development costs incurred from the time technological feasibility of the software is established until the software is available for general release, in accordance with GAAP. Such capitalized costs are subsequently amortized as costs of revenue over the shorter of three years or the remaining estimated useful life of the product. See discussion at Note 11 for an impairment charge taken during the nine month period ended September 30, 2016. Research and development costs and other computer software maintenance costs related to the software development are expensed as incurred.
Long-Lived Assets	Long-Lived Assets Long-lived assets are assessed for possible impairment whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable, whenever we have committed to a plan to dispose of the assets or, at a minimum, annually. Typically, for long-lived assets to be held and used, measurement of an impairment loss is based on the fair value of such assets, with fair value being determined based on appraisals, current market value, comparable sales value, and discounted future cash flows, among other variables, as appropriate. Assets to be held and used (which assets are affected by an impairment loss) are depreciated or amortized at their new carrying amount over their remaining estimated life; assets to be sold or otherwise disposed of are not subject to further depreciation or amortization. During the three month and nine month period ended September 30, 2016 respectively, we determined that an impairment of $0 and $15,500 existed with certain capitalized software development costs associated with our hopTo Work product and recognized that cost as part of cost of revenue. No such impairment charge was recorded during either of the three or nine-month periods ended September 30, 2015.
Allowance for Doubtful Accounts	Allowance for Doubtful Accounts We maintain an allowance for doubtful accounts that reflects our best estimate of potentially uncollectible trade receivables. The allowance is based on assessments of the collectability of specific customer accounts and the general aging and size of the accounts receivable. We regularly review the adequacy of our allowance for doubtful accounts by considering such factors as historical experience, credit worthiness, and current economic conditions that may affect a customer’s ability to pay. We specifically reserve for those accounts deemed uncollectible. We also establish, and adjust, a general allowance for doubtful accounts based on our review of the aging and size of our accounts receivable. The following table sets forth the details of the Allowance for Doubtful Accounts for the three-month periods ended September 30, 2016 and 2015: Beginning Balance Charge Offs Recoveries Provision Ending Balance 2016 $ 14,900 $ — $ — $ (9,600 ) $ 5,300 2015 15,900 — — (200 ) 15,700 The following table sets forth the details of the Allowance for Doubtful Accounts for the nine-month periods ended September 30, 2016 and 2015 Beginning Balance Charge Offs Recoveries Provision Ending Balance 2016 $ 17,300 $ — $ — $ (12,000 ) $ 5,300 2015 32,600 — — 16,900 15,700
Concentration of Credit Risk	Concentration of Credit Risk For the three and nine-month periods ended September 30, 2016 and 2015 respectively, we considered the customers listed in the following tables to be our most significant customers. The tables set forth the percentage of sales attributable to each customer during the periods presented, and the respective customer’s ending accounts receivable balance as a percentage of reported accounts receivable, net, as of September 30, 2016 and 2015. Three Months Ended September 30, 2016 As of September 30, 2016 Three Months Ended September 30, 2015 As of September 30, 2015 Customer Sales Accounts Receivable Sales Accounts Receivable Alcatel-Lucent 3.2 % 13.9 % 8.4 % 21.1 % Elosoft 10.8 % 10.4 % 8.1 % 5.0 % GE 5.8 % 16.0 % 2.0 % 4.3 % IDS 6.6 % 0.0 % 13.5 % 0.0 % Imagination Technology 1.7 % 8.4 % 1.0 % 2.5 % KitASP 5.3 % 2.7 % 2.8 % 17.5 % Raytheon 5.7 % 0.0 % 0.0 % 0.0 % SAI SL 2.0 % 7.8 % 0.2 % 0.6 % Thermo LabSystems 4.6 % 8.9 % 2.5 % 3.5 % Uniface 6.0 % 16.5 % 1.3 % 2.9 % Total 51.7 % 84.6 % 39.8 % 57.4 % Nine Months Ended September 30, 2016 As of September 30, 2016 Nine Months Ended September 30, 2015 As of September 30, 2015 Customer Sales Accounts Receivable Sales Accounts Receivable Alcatel-Lucent 5.0 % 13.9 % 5.6 % 21.1 % Centric 5.4 % 3.8 % 4.5 % 11.6 % Elosoft 8.9 % 10.4 % 11.4 % 5.0 % GE 4.6 % 16.0 % 1.9 % 4.3 % Imagination Technology 0.5 % 8.4 % 0.3 % 2.5 % SAI 1.0 % 7.8 % 0.6 % 0.6 % Thermo LabSystems 5.4 % 8.9 % 2.6 % 3.5 % Uniface 6.1 % 16.5 % 6.4 % 2.9 % Total 36.9 % 85.7 % 33.3 % 51.5 %
Derivative Financial Instruments	Derivative Financial Instruments We currently do not have a material exposure to either commodity prices or interest rates; accordingly, we do not currently use derivative instruments to manage such risks. We evaluate all of our financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. All derivative financial instruments are recognized in the balance sheet at fair value. Changes in fair value are recognized in earnings if they are not eligible for hedge accounting or in other comprehensive income if they qualify for cash flow hedge accounting.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The fair value of our accounts receivable, accounts payable and accrued liabilities approximate their carrying amounts due to the relative short maturities of these items. The fair value of warrants at issuance and for those recorded as a liability at each reporting date are determined in accordance with the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) 820, “Fair Value Measurement,” ● Level 1: Defined as observable inputs, such as quoted (unadjusted) prices in active markets for identical assets or liabilities. ● Level 2: Defined as observable inputs other than quoted prices included in Level 1. This includes quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. ● Level 3: Defined as unobservable inputs to the valuation methodology that are supported by little or no market activity and that are significant to the measurement of the fair value of the assets or liabilities. Level 3 assets and liabilities include those whose fair value measurements are determined using pricing models, discounted cash flow methodologies or similar valuation techniques, as well as significant management judgment or estimation. As of September 30, 2016, all of our Warrants Liability reported at fair value was categorized as Level 3 inputs (See Note 5).
Recent Accounting Pronouncements	Recent Accounting Pronouncements In August 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In May 2016, the FASB issued ASU 2016-12— Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients In April 2016, the FASB issued ASU 2016-10— Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing to clarify certain aspects of ASU 2014-09 In March 2016, the FASB issued ASU 2016-09— Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting In March 2016, the FASB issued ASU 2016-08— Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes In August 2015, FASB issued ASU No. 2015-14 “ Revenue from Contracts with Customers (Topic 606)” – Deferral of the Effective Date In April 2015, FASB issued ASU No. 2015-05 “ Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement” In August 2014, FASB issued ASU No. 2014-15 “ Preparation of Financial Statements - Going Concern (Subtopic 205-40)” In June 2014, FASB issued ASU No. 2014-12 “Compensation – Stock Compensation (Topic 718)” In May 2014, FASB issued ASU No. 2014-09 “ Revenue from Contracts with Customers (Topic 606)” 1. Removes inconsistencies and weaknesses in revenue requirements. 2. Provides a more robust framework for addressing revenue issues. 3. Improves comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets. 4. Provides more useful information to users of financial statements through improved disclosure requirements. 5. Simplifies the preparation of financial statements by reducing the number of requirements to which an entity must refer. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within such annual period. Early adoption is not permitted. We are currently evaluating this ASU in order to determine whether or not its adoption will have a material impact on our results of operations, cash flows or financial position. In April 2014, FASB issued ASU No. 2014-08 “Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360)” “Presentation of Financial Statements – Discontinued Operations”,

Significant Accounting Polici25

Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Schedule of Allowance for Doubtful Accounts	The following table sets forth the details of the Allowance for Doubtful Accounts for the three-month periods ended September 30, 2016 and 2015: Beginning Balance Charge Offs Recoveries Provision Ending Balance 2016 $ 14,900 $ — $ — $ (9,600 ) $ 5,300 2015 15,900 — — (200 ) 15,700 The following table sets forth the details of the Allowance for Doubtful Accounts for the nine-month periods ended September 30, 2016 and 2015 Beginning Balance Charge Offs Recoveries Provision Ending Balance 2016 $ 17,300 $ — $ — $ (12,000 ) $ 5,300 2015 32,600 — — 16,900 15,700
Schedule of Concentration of Credit Risk	For the three and nine-month periods ended September 30, 2016 and 2015 respectively, we considered the customers listed in the following tables to be our most significant customers. The tables set forth the percentage of sales attributable to each customer during the periods presented, and the respective customer’s ending accounts receivable balance as a percentage of reported accounts receivable, net, as of September 30, 2016 and 2015. Three Months Ended September 30, 2016 As of September 30, 2016 Three Months Ended September 30, 2015 As of September 30, 2015 Customer Sales Accounts Receivable Sales Accounts Receivable Alcatel-Lucent 3.2 % 13.9 % 8.4 % 21.1 % Elosoft 10.8 % 10.4 % 8.1 % 5.0 % GE 5.8 % 16.0 % 2.0 % 4.3 % IDS 6.6 % 0.0 % 13.5 % 0.0 % Imagination Technology 1.7 % 8.4 % 1.0 % 2.5 % KitASP 5.3 % 2.7 % 2.8 % 17.5 % Raytheon 5.7 % 0.0 % 0.0 % 0.0 % SAI SL 2.0 % 7.8 % 0.2 % 0.6 % Thermo LabSystems 4.6 % 8.9 % 2.5 % 3.5 % Uniface 6.0 % 16.5 % 1.3 % 2.9 % Total 51.7 % 84.6 % 39.8 % 57.4 % Nine Months Ended September 30, 2016 As of September 30, 2016 Nine Months Ended September 30, 2015 As of September 30, 2015 Customer Sales Accounts Receivable Sales Accounts Receivable Alcatel-Lucent 5.0 % 13.9 % 5.6 % 21.1 % Centric 5.4 % 3.8 % 4.5 % 11.6 % Elosoft 8.9 % 10.4 % 11.4 % 5.0 % GE 4.6 % 16.0 % 1.9 % 4.3 % Imagination Technology 0.5 % 8.4 % 0.3 % 2.5 % SAI 1.0 % 7.8 % 0.6 % 0.6 % Thermo LabSystems 5.4 % 8.9 % 2.6 % 3.5 % Uniface 6.1 % 16.5 % 6.4 % 2.9 % Total 36.9 % 85.7 % 33.3 % 51.5 %

Property and Equipment (Tables)

Property and Equipment (Tables)	9 Months Ended
	Sep. 30, 2016
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment	Property and equipment was: September 30, 2016 December 31, 2015 Equipment $ 258,700 $ 313,700 Furniture 190,600 233,900 Leasehold improvements 167,600 167,600 616,900 715,200 Less: accumulated depreciation and amortization 455,300 462,700 $ 161,600 $ 252,500

Liability Attributable to War27

Liability Attributable to Warrants (Tables)	9 Months Ended
	Sep. 30, 2016
Other Liabilities Disclosure [Abstract]
Fair Value, Assets and Liabilities Measured On Nonrecurring Basis, Valuation Techniques	We used a binomial pricing model to determine the fair value of our warrants liability at September 30, 2016 and December 31, 2015, using the following assumptions: Estimated Volatility Annualized Forfeiture Rate Expected Term (Years) Estimated Exercise Factor Risk-Free Interest Rate Dividends ipCapital September 30, 2016 378 % — 0.09 1.1 0.20 % — December 31, 2015 127 % — 0.79 4.0 0.61 % —
Fair Value, Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation	The following table is a reconciliation of the warrants liability measured at fair value using significant unobservable inputs (Level 3) for the nine months ended September 30, 2016: Warrants liability – December 31, 2015 fair value $ 31,600 Change in fair value of warrant liability recorded in other income (29,400 ) Change in fair value of warrant liability recorded in general and administrative expense (2,300 ) Warrants liability – September 30, 2016 fair value $ —
Schedule of Stockholders' Equity Note, Warrants or Rights	The following tables reconcile the number of warrants outstanding for the periods indicated: For the Three-Month Period Ended September 30, 2016 Beginning Outstanding Issued Exercised Cancelled / Forfeited Ending Outstanding 2011 Transaction 686,833 — — 686,833 — 2014 Transaction 376,667 — — — 376,667 Exercise Agreement 300,000 — — — 300,000 ipCapital 26,667 — — — 26,667 Consultant Warrant 11,285 — — — 11,285 Offer to Exercise 10,167 — — — 10,167 1,411,619 — — 686,833 724,786 For the Three-Month Period Ended September 30, 2015 Beginning Outstanding Issued Exercised Cancelled / Forfeited Ending Outstanding 2011 Transaction 686,833 — — — 686,833 2014 Transaction 376,667 — — — 376,667 Exercise Agreement 300,000 — — — 300,000 ipCapital 26,667 — — — 26,667 Consultant Warrant 11,285 — — — 11,285 Offer to Exercise 10,167 — — — 10,167 1,411,619 — — — 1,411,619 For the Nine-Month Period Ended September 30, 2016 Beginning Outstanding Issued Exercised Cancelled / Forfeited Ending Outstanding 2011 Transaction 686,833 — — 686,833 — 2014 Transaction 376,667 — — — 376,667 Exercise Agreement 300,000 — — — 300,000 ipCapital 26,667 — — — 26,667 Consultant Warrant) 11,285 — — — 11,285 Offer to Exercise 10,167 — — — 10,167 1,411,619 — — 686,833 724,786 For the Nine-Month Period Ended September 30, 2015 Beginning Outstanding Issued Exercised Cancelled / Forfeited Ending Outstanding 2011 Transaction 686,833 — — — 686,833 2014 Transaction 376,667 — — — 376,667 Exercise Agreement 300,000 — — — 300,000 ipCapital 26,667 — — — 26,667 Consultant Warrant 11,285 — — — 11,285 Offer to Exercise 10,167 — — — 10,167 1,411,619 — — — 1,411,619

Deferred Rent (Tables)

Deferred Rent (Tables)	9 Months Ended
	Sep. 30, 2016
Deferred Revenue Disclosure [Abstract]
Summary of Deferred Rent	As of September 30, 2016 deferred rent was: Component Current Liabilities Long-Term Liabilities Total Deferred rent expense $ 21,900 $ (33,700 ) $ (11,800 ) Deferred rent benefit 39,700 43,000 82,700 $ 61,600 $ 9,300 $ 70,900 As of December 31, 2015 deferred rent was: Component Current Liabilities Long-Term Liabilities Total Deferred rent expense $ (18,700 ) $ (46,100 ) $ (64,800 ) Deferred rent benefit 39,700 72,800 112,500 $ 21,000 $ 26,700 $ 47,700

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of Stock-based Compensation Expense	The following table summarizes the stock-based compensation expense, net of amounts capitalized, we recorded in our Unaudited Condensed Consolidated Statements of Operations for the three and nine-month periods ended September 30, 2016 and 2015, respectively, by classification: Three Months Ended September 30, Nine Months Ended September 30, Statement of Operations Classification 2016 2015 2016 2015 Costs of revenue $ 2,200 $ 2,100 $ 5,400 $ 7,100 Selling and marketing expense 4,600 75,600 69,000 134,400 General and administrative expense 40,500 121,700 135,500 420,300 Research and development expense 26,400 25,800 93,500 75,800 $ 73,700 $ 225,200 $ 303,400 $ 637,600
Summary of Status and Activity of Stock Option Awards	The following table presents summaries of the status and activity of our stock option awards for the three-month period ended September 30, 2016. Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Terms (Years) Aggregate Intrinsic Value Outstanding – June 30, 2016 696,189 $ 2.63 Granted — Exercised (1,800 ) 0.81 Forfeited or expired (6,667 ) 2.7 Outstanding – September 30, 2016 687,722 $ 2.63 6.22 — The following table presents summaries of the status and activity of our stock option awards for the nine-month period ended September 30, 2016. Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Terms (Years) Aggregate Intrinsic Value Outstanding – December 31, 2015 705,990 $ 2.63 Granted — Exercised (1,800 ) 0.81 Forfeited or expired (16,468 ) 2.81 Outstanding – September 30, 2016 687,722 $ 2.63 6.22 —
Summary of Status and Activity of Restricted Stock Awards	The following table presents summaries of the status and activity of our restricted stock awards for the three-month period ended September 30, 2016. We include the common stock underlying the restricted stock award in shares outstanding once such common stock has vested and the restriction has been removed (“releases” or “released”). The common stock vests ratably, over a 33-month period commencing in the fourth month after the award date. Number of Shares Weighted Average Grant Date Fair Value Weighted Average Remaining Recognition Period (Years) Unrecognized Compensation Cost Remaining Unreleased – June 30, 2016 106,901 $ 2.06 Awarded - - Released (40,880 ) 2.24 Forfeited (66,021 ) 1.91 Outstanding – September 30, 2016 — — — — The following table presents summaries of the status and activity of our restricted stock awards for the nine-month period ended September 30, 2016. Number of Shares Weighted Average Grant Date Fair Value Weighted Average Remaining Recognition Period (Years) Unrecognized Compensation Cost Remaining Unreleased – December 31, 2015 106,586 $ 2.31 Awarded 35,000 1.65 Released (71,429 ) 2.31 Forfeited (70,157 ) 1.91 Outstanding – September 30, 2016 — — — —

Revenue (Tables)

Revenue (Tables)	9 Months Ended
	Sep. 30, 2016
Revenue Tables
Schedule of Revenue	Revenue for the three-month periods ended September 30, 2016 and 2015 was: 2016 Over (Under) 2015 Revenue 2016 2015 Dollars Percent Software Licenses Windows $ 222,500 $ 373,500 $ (151,000 ) -40.4 % UNIX/Linux 64,000 86,700 (22,700 ) -26.2 % 286,500 460,200 (173,700 ) -37.7 % Software Service Fees Windows 444,700 484,000 (39,300 ) -8.1 % UNIX/Linux 149,400 175,000 (25,600 ) -14.6 % 594,100 659,000 (64,900 ) -9.8 % Other 17,900 9,600 8,300 86.5 % Total Revenue $ 898,500 $ 1,128,800 $ (230,300 ) -20.4 % Revenue for the nine-month periods ended September 30, 2016 and 2015 was: 2016 Over (Under) 2015 Revenue 2016 2015 Dollars Percent Software Licenses Windows $ 774,200 $ 1,429,800 $ (665,600 ) -45.9 % UNIX/Linux 209,200 500,800 (291,600 ) -58.2 % 983,400 1,930,600 (947,200 ) -49.1 % Software Service Fees Windows 1,367,200 1,452,000 (84,800 ) -5.8 % UNIX/Linux 473,700 542,200 (68,500 ) -12.6 % 1,840,900 1,994,200 (153,300 ) -7.7 % Other 40,100 33,900 6,200 18.3 % Total Revenue $ 2,864,400 $ 3,958,700 $ (1,094,300 ) -27.6 %

Cost of Revenue (Tables)

Cost of Revenue (Tables)	9 Months Ended
	Sep. 30, 2016
Cost of Revenue [Abstract]
Schedule of Cost of Revenue	Cost of revenue for the three-month periods ended September 30, 2016 and 2015 was: 2016 Over (Under) 2015 2016 2015 Dollars Percent Software service costs $ 2,100 $ 43,900 $ (41,800 ) -95.2 % Software product costs 6,200 65,000 (58,800 ) -90.5 % $ 8,300 $ 108,900 $ (100,600 ) -92.4 % Cost of revenue for the nine-month periods ended September 30, 2016 and 2015 was: 2016 Over (Under) 2015 2016 2015 Dollars Percent Software service costs $ 78,100 $ 128,500 $ (50,400 ) -39.2 % Software product costs 51,400 190,700 (139,300 ) -73.0 % $ 129,500 $ 319,200 $ (189,700 ) -59.4 %

Capitalized Software Developm32

Capitalized Software Development Costs (Tables)	9 Months Ended
	Sep. 30, 2016
Research and Development [Abstract]
Schedule of Capitalized Software Development Costs	Capitalized software development costs consisted of the following: September 30, 2016 December 31, 2015 Software development costs $ 490,400 $ 518,800 Accumulated amortization (490,400 ) (498,000 ) - $ 20,800

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2016
Equity [Abstract]
Schedule of Stockholders Equity	The 2014 Transaction was recorded into the financial statements as follows: Gross cash proceeds $ 3,390,000 Less: gross proceeds allocated to warrants liability – investors (1,356,000 ) Gross proceeds allocated to additional paid-in capital and common stock 2,034,000 Less: cash issuance costs – legal fees (20,000 ) Recorded in additional paid-in capital and common stock $ 2,014,000

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Schedule of Future Minimum Lease Payments	The following table sets forth the net minimum lease payments we will be required to make throughout the remainder of these leases: Year Amount Remainder of 2016 $ 28,400 2017 114,300 2018 68,300 $ 211,000

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 30, 2016
Segment Reporting [Abstract]
Schedule of Revenue by Country	Revenue by country for the three-month and nine-month periods ended September 30, 2016 and 2015 was as follows: Three Months Ended September 30, Nine Months Ended September 30, Revenue by Country 2016 2015 2016 2015 United States $ 370,800 $ 616,800 $ 1,158,100 $ 1,368,300 Brazil 122,900 246,100 418,100 415,600 Other Countries 404,800 265,900 1,288,200 2,174,800 Total $ 898,500 $ 1,128,800 $ 2,864,400 $ 3,958,700

Going Concern and Management'36

Going Concern and Management's Liquidity Plans (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Incurred losses from operations	$ 462,000	$ 1,214,500	$ 1,874,500	$ 3,367,400
Accumulated deficit	82,471,400		82,471,400		$ 80,596,900
Working capital deficit	$ 2,440,700		$ 2,440,700
Compensation descrisption	During the three month period ended September 30, 2016, our CEO and CFO voluntarily agreed with our board of directors to defer 50% of their salary beginning September 1, 2016 until such time as the Company can reasonably pay such compensation upon approval by the board of directors.

Significant Accounting Polici37

Significant Accounting Policies (Details Narrative) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2016	Dec. 31, 2015
Accounting Policies [Abstract]
Severance liability	$ 0	$ 0	$ 5,900
Impairment of long-lived assets held-for-use	0	15,500
Impairment charges of long-lived assets

Significant Accounting Polici38

Significant Accounting Policies - Schedule of Allowance for Doubtful Accounts (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Accounting Policies [Abstract]
Beginning balance	$ 14,900	$ 15,900	$ 17,300	$ 32,600
Charge offs
Recoveries
Provision	(9,600)	(200)	(12,000)	(16,900)
Ending balance	$ 5,300	$ 15,700	$ 5,300	$ 15,700

Significant Accounting Polici39

Significant Accounting Policies - Schedules of Concentration of Credit Risk (Details) - Customer Concentration Risk [Member]	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Sales Revenue, Net [Member]
Percentage of concentration of credit risk	51.70%	39.80%	36.90%	33.30%
Sales Revenue, Net [Member] | Alcatel-Lucent [Member]
Percentage of concentration of credit risk	3.20%	8.40%	5.00%	5.60%
Sales Revenue, Net [Member] | Centric [Member]
Percentage of concentration of credit risk			5.40%	4.50%
Sales Revenue, Net [Member] | Elosoft [Member]
Percentage of concentration of credit risk	10.80%	8.10%	8.90%	11.40%
Sales Revenue, Net [Member] | GE [Member]
Percentage of concentration of credit risk	5.80%	2.00%	4.60%	1.90%
Sales Revenue, Net [Member] | Imagination Technology [Member]
Percentage of concentration of credit risk	1.70%	1.00%	0.50%	0.30%
Sales Revenue, Net [Member] | SAI SL[Member]
Percentage of concentration of credit risk	2.00%	0.20%	1.00%	0.60%
Sales Revenue, Net [Member] | Thermo Lab Systems [Member]
Percentage of concentration of credit risk	4.60%	2.50%	5.40%	2.60%
Sales Revenue, Net [Member] | Uniface [Member]
Percentage of concentration of credit risk	6.00%	1.30%	6.10%	6.40%
Sales Revenue, Net [Member] | IDS [Member]
Percentage of concentration of credit risk	6.60%	13.50%
Sales Revenue, Net [Member] | KitASP [Member]
Percentage of concentration of credit risk	5.30%	2.80%
Sales Revenue, Net [Member] | Raytheon [Member]
Percentage of concentration of credit risk	5.70%	0.00%
Accounts Receivable [Member]
Percentage of concentration of credit risk	84.60%	57.40%	85.70%	51.50%
Accounts Receivable [Member] | Alcatel-Lucent [Member]
Percentage of concentration of credit risk	13.90%	21.10%	13.90%	21.10%
Accounts Receivable [Member] | Centric [Member]
Percentage of concentration of credit risk			3.80%	11.60%
Accounts Receivable [Member] | Elosoft [Member]
Percentage of concentration of credit risk	10.40%	5.00%	10.40%	5.00%
Accounts Receivable [Member] | GE [Member]
Percentage of concentration of credit risk	16.00%	4.30%	16.00%	4.30%
Accounts Receivable [Member] | Imagination Technology [Member]
Percentage of concentration of credit risk	8.40%	2.50%	8.40%	2.50%
Accounts Receivable [Member] | SAI SL[Member]
Percentage of concentration of credit risk	7.80%	0.60%	7.80%	0.60%
Accounts Receivable [Member] | Thermo Lab Systems [Member]
Percentage of concentration of credit risk	8.90%	3.50%	8.90%	3.50%
Accounts Receivable [Member] | Uniface [Member]
Percentage of concentration of credit risk	16.50%	2.90%	16.50%	2.90%
Accounts Receivable [Member] | IDS [Member]
Percentage of concentration of credit risk	0.00%	0.00%
Accounts Receivable [Member] | KitASP [Member]
Percentage of concentration of credit risk	2.70%	17.50%
Accounts Receivable [Member] | Raytheon [Member]
Percentage of concentration of credit risk	0.00%	0.00%

Property and Equipment (Details

Property and Equipment (Details Narrative)	3 Months Ended	9 Months Ended
	Sep. 30, 2016USD ($)	Sep. 30, 2016USD ($)
Property, Plant and Equipment [Abstract]
Depreciation and amortization	$ 21,200	$ 70,800
Combined net book value	$ 20,100	$ 20,100

Property and Equipment - Schedu

Property and Equipment - Schedule of Property and Equipment (Details) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Property and equipment gross	$ 616,900	$ 715,200
Less: accumulated depreciation and amortization	455,300	462,700
Property and equipment net	161,600	252,500
Equipment [Member]
Property and equipment gross	258,700	313,700
Furniture [Member]
Property and equipment gross	190,600	233,900
Leasehold Improvements [Member]
Property and equipment gross	$ 167,600	$ 167,600

Liability Attributable to War42

Liability Attributable to Warrants (Details Narrative)	Jan. 07, 2014USD ($)$ / sharesshares	Sep. 30, 2016USD ($)Integer$ / shares	Dec. 31, 2015USD ($)	Sep. 30, 2015$ / shares	Jul. 24, 2015$ / shares	Jan. 07, 2015USD ($)	Mar. 31, 2014$ / shares
Fair value of common stock		$ 0.08		$ 0.10	$ 1.21		$ 4.50
Warrants liability | $	$ 1,356,000		$ 31,600
Class of warrant or right, fair value | $						$ 407,300
Fair value assumptions, expected volatility rate		113.00%
Fair value assumptions, annualized forfeiture rate		0.00%
Fair value assumption, exercise factor | Integer		3.5
Fair value assumptions, risk free interest rate		1.20%
Fair value assumptions, weighted average expected dividend		$ 0
2015 Private Placement [Member]
Warrant Description		The 2015 Private Placement (Note 12) met those conditions and resulted in the placement agent warrants being repriced from $3.00 and $3.90 to $2.55 and $3.30, respectively
Securities Purchase Agreement [Member]
Class of warrant or right, number of securities called by warrants or rights | shares	376,667
Class of warrant or right, exercise price of warrants or rights	$ 6
Warrants liability | $	$ 1,356,000
Exercise Agreement [Member]
Fair value assumptions, expected term		4 years 1 month 6 days
ip Capital [Member]
Class of warrant or right, exercise price of warrants or rights		$ 3.90
2011 Transaction [Member] | Minimum [Member]
Class of warrant or right, exercise price of warrants or rights		3
Warrants exercise price upon reprising		2.55
2011 Transaction [Member] | Maximum [Member]
Class of warrant or right, exercise price of warrants or rights		3.90
Warrants exercise price upon reprising		$ 3.30
Common Stock [Member] | Securities Purchase Agreement [Member]
Stock issued during period, shares, new issues | shares	723,333
Fair value of common stock	$ 4.50

Liability Attributable to War43

Liability Attributable to Warrants - Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Estimated volatility	113.00%
Risk-free interest rate	1.20%
IP Capital Group Inc [Member]
Estimated volatility	378.00%
Annualized forfeiture rate
Expected term	1 month 2 days
Estimated exercise factor	$ 1.1
Risk-free interest rate	0.20%
Dividends
IP Capital Group Inc [Member]
Estimated volatility		127.00%
Annualized forfeiture rate
Expected term		9 months 15 days
Estimated exercise factor		$ 4
Risk-free interest rate		0.61%
Dividends

Liability Attributable to War44

Liability Attributable to Warrants - Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation (Details)	9 Months Ended
	Sep. 30, 2016USD ($)
Other Liabilities Disclosure [Abstract]
Warrants liability	$ 31,600
Change in fair value of warrant liability recorded in other expense	(29,400)
Change in fair value of warrant liability recorded in general and administrative expense	(2,300)
Warrants liability

Liability Attributable to War45

Liability Attributable to Warrants - Schedule of Stockholders' Equity Note, Warrants or Rights (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Beginning outstanding	1,411,619	686,833	1,411,619	1,411,619
Issued
Exercised
Cancelled / forfeited	686,833		686,833
Ending outstanding	724,786	1,411,619	724,786	1,411,619
IP Capital Group Inc [Member]
Beginning outstanding	26,667	26,667	26,667	26,667
Issued
Exercised
Cancelled / forfeited
Ending outstanding	26,667	26,667	26,667	26,667
2011 Transaction [Member]
Beginning outstanding	686,833	686,833	686,833	686,833
Issued
Exercised
Cancelled / forfeited	686,833		686,833
Ending outstanding		686,833		686,833
2014 Transaction [Member]
Beginning outstanding	376,667	376,667	376,667	376,667
Issued
Exercised
Cancelled / forfeited
Ending outstanding	376,667	376,667	376,667	376,667
Exercise Agreement [Member]
Beginning outstanding	300,000	300,000	300,000	300,000
Issued
Exercised
Cancelled / forfeited
Ending outstanding	300,000	300,000	300,000	300,000
Consultant Warrant [Member]
Beginning outstanding	11,285	11,285	11,285	11,285
Issued
Exercised
Cancelled / forfeited
Ending outstanding	11,285	11,285	11,285	11,285
Offer to Exercise [Member]
Beginning outstanding	10,167	10,167	10,167	10,167
Issued
Exercised
Cancelled / forfeited
Ending outstanding	10,167	10,167	10,167	10,167

Severance Liability (Details Na

Severance Liability (Details Narrative) - USD ($)	1 Months Ended	9 Months Ended
	Aug. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Related Party Transactions [Abstract]
Payment made to employee medical coverage	$ 15,000
Severance liabilities		$ 0		$ 5,900
Payment to severance amount		$ 5,900	$ 0

Deferred Rent (Details Narrativ

Deferred Rent (Details Narrative)	Sep. 30, 2016USD ($)
Deferred Revenue Disclosure [Abstract]
Leasehold improvements	$ 106,600

Deferred Rent - Summary of Defe

Deferred Rent - Summary of Deferred Rent (Details) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Current liabilities	$ 61,600	$ 21,000
Long-term liabilities	9,300	26,700
Total	70,900	47,700
Deferred Rent Expense [Member]
Current liabilities	21,200	(18,700)
Long-term liabilities	(33,700)	(46,100)
Total	(11,800)	(64,800)
Deferred Rent Benefit [Member]
Current liabilities	39,700	39,700
Long-term liabilities	43,000	72,800
Total	$ 82,700	$ 112,500

Stock-Based Compensation (Detai

Stock-Based Compensation (Details Narrative)	9 Months Ended
	Sep. 30, 2016USD ($)shares
Options outstanding vested	574,154
Options outstanding estimated to vest	113,290
Options outstanding estimated to be forfeited prior to vesting	278
Total unrecognized compensation cost, net of estimated forfeitures | $	$ 26,100
Weighted-average period	9 months
Options vesting period	33 months
Restricted Stock [Member]
Total unrecognized compensation cost, net of estimated forfeitures | $	$ 0

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary Of Stock-Based Compensation Expense (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Compensation expense	$ 73,700	$ 225,200	$ 303,400	$ 637,600
Costs of Revenue [Member]
Compensation expense	2,200	2,100	5,400	7,100
Selling and Marketing Expense [Member]
Compensation expense	4,600	75,600	69,000	134,400
General and Administrative Expense [Member]
Compensation expense	40,500	121,700	135,500	420,300
Research and Development Expense [Member]
Compensation expense	$ 26,400	$ 25,800	$ 93,500	$ 75,800

Stock-Based Compensation - Su51

Stock-Based Compensation - Summary of Status and Activity of Stock Option Awards (Details) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Number of shares, outstanding beginning balance	696,189	705,990
Number of shares, granted
Number of shares, exercised	(1,800)	(1,800)
Number of shares, forfeited or expired	(6,667)	(16,468)
Number of shares, outstanding ending balance	687,722	687,722
Weighted average exercise price, outstanding beginning balance	$ 2.63	$ 2.63
Weighted average exercise price, granted
Weighted average exercise price, exercised	0.81	0.81
Weighted average exercise price, forfeited or expired	2.7	2.81
Weighted average exercise price, outstanding ending balance	$ 2.63	$ 2.63
Weighted average remaining contractual terms (years)	6 years 2 months 19 days	6 years 2 months 19 days
Aggregate intrinsic value

Stock-Based Compensation - Su52

Stock-Based Compensation - Summary of Status and Activity of Restricted Stock Awards (Details) - Restricted Stock [Member] - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2016
Number of shares unreleased, beginning balance	106,901	106,586
Number of shares awarded		35,000
Number of shares released	(40,880)	(71,429)
Number of shares forfeited	(66,021)	(70,157)
Number of shares outstanding, ending balance
Weighted average grant date fair value beginning balance	$ 2.06	$ 2.31
Weighted average grant date fair value awarded		1.65
Weighted average grant date fair value released	2.24	2.31
Weighted average grant date fair value forfeited	1.91	1.91
Weighted average grant date fair value ending balance
Weighted average remaining recognition period (years)	0 months	0 months
Unrecognized compensation cost remaining

Revenue - Schedule of Revenue (

Revenue - Schedule of Revenue (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Other	$ 17,900	$ 9,600	$ 40,100	$ 33,900
Increase (decrease) in other	$ 8,300		$ 6,200
Increase (decrease) in other, percentage	86.50%		18.30%
Increase (decrease) in total revenue	$ 898,500	1,128,800	$ 2,864,400	3,958,700
Increase (decrease) in total revenue	$ (230,300)		$ (1,094,300)
Increase (decrease) in total revenue	(20.40%)		(27.60%)
Software Licenses [Member]
Software licenses	$ 286,500	460,200	$ 983,400	1,930,600
Increase (decrease) in software licenses	$ (173,700)		$ (947,200)
Increase (decrease) in software licenses, percentage	(37.70%)		(49.10%)
Software Licenses [Member] | Windows [Member]
Software licenses	$ 222,500	373,500	$ 774,200	1,429,800
Increase (decrease) in software licenses	$ (151,000)		$ (665,600)
Increase (decrease) in software licenses, percentage	(40.40%)		(45.90%)
Software Licenses [Member] | Unix Linux [Member]
Software licenses	$ 64,000	86,700	$ 209,200	500,800
Increase (decrease) in software licenses	$ (22,700)		$ (291,600)
Increase (decrease) in software licenses, percentage	(26.20%)		(58.20%)
Software Service Fees [Member]
Software service fees	$ 594,100	659,000	$ 1,840,900	1,994,200
Increase (decrease) in software service fees	$ (64,900)		$ (153,300)
Increase (decrease) in software service fees, percentage	(9.80%)		(7.70%)
Software Service Fees [Member] | Windows [Member]
Software service fees	$ 444,700	484,000	$ 1,367,200	1,452,000
Increase (decrease) in software service fees	$ (39,300)		$ (84,800)
Increase (decrease) in software service fees, percentage	(8.10%)		(5.80%)
Software Service Fees [Member] | Unix Linux [Member]
Software service fees	$ 149,400	$ 175,000	$ 473,700	$ 542,200
Increase (decrease) in software service fees	$ (25,600)		$ (68,500)
Increase (decrease) in software service fees, percentage	(14.60%)		(12.60%)

Cost of Revenue - Schedule of C

Cost of Revenue - Schedule of Cost of Revenue (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Cost of revenue	$ 8,300	$ 108,900	$ 129,500	$ 319,200
Increase (decrease) in cost of revenue	$ (100,600)		$ (189,700)
Increase (decrease) in cost of revenue, percentage	(92.40%)		(59.40%)
Software Service Costs [Member]
Cost of revenue	$ 2,100	43,900	$ 78,100	128,500
Increase (decrease) in cost of revenue	$ (41,800)		$ (50,400)
Increase (decrease) in cost of revenue, percentage	(95.20%)		(39.20%)
Software Product Costs [Member]
Cost of revenue	$ 6,200	$ 65,000	$ 51,400	$ 190,700
Increase (decrease) in cost of revenue	$ (58,800)		$ (139,300)
Increase (decrease) in cost of revenue, percentage	(90.50%)		(73.00%)

Capitalized Software Developm55

Capitalized Software Development Costs (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Research and Development [Abstract]
Capitalized computer software, amortization	$ 200	$ 54,400	$ 5,300	$ 162,400
Capitalized software development costs		$ 12,000		$ 12,000
Impairment of long-lived assets held-for-use	$ 0		$ 15,500

Capitalized Software Developm56

Capitalized Software Development Costs - Schedule of Capitalized Software Development Costs (Details) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Research and Development [Abstract]
Software development costs	$ 490,400	$ 518,800
Accumulated amortization	(490,400)	(498,000)
Capitalized software development costs, net		$ 20,800

Stockholders' Equity (Details N

Stockholders' Equity (Details Narrative) - USD ($)	Jul. 24, 2015	Mar. 31, 2014	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015	Jan. 07, 2014
Equity [Abstract]
Number of common stock shares issued and sold for shares	2,105,919	753,333
Share price	$ 1.21	$ 4.50	$ 0.08	$ 0.10
Proceeds from issuance of private placement	$ 2,550,500	$ 3,390,000		$ 2,550,500
Warrants liability					$ 31,600	$ 1,356,000

Stockholders' Equity - Schedule

Stockholders' Equity - Schedule of Stockholders Equity (Details) - USD ($)	Jul. 24, 2015	Mar. 31, 2014	Sep. 30, 2016	Sep. 30, 2015
Gross cash proceeds	$ 2,550,500	$ 3,390,000		$ 2,550,500
2014 Transaction [Member]
Gross cash proceeds			3,390,000
Less: gross proceeds allocated to warrants liability - investors			(1,356,000)
Gross proceeds allocated to additional paid-in capital and common stock			2,034,000
Less: cash issuance costs - legal fees			(20,000)
Recorded in additional paid-in capital and common stock			$ 2,014,000

Commitments and Contingencies59

Commitments and Contingencies (Details Narrative)	Feb. 01, 2014ft²	Sep. 30, 2016	Sep. 30, 2016USD ($)
Compensation descrisption		During the three month period ended September 30, 2016, our CEO and CFO voluntarily agreed with our board of directors to defer 50% of their salary beginning September 1, 2016 until such time as the Company can reasonably pay such compensation upon approval by the board of directors.
Non-cash expense related to potential liquidated damages | $			$ 392,900
Campbell Facility [Member]
Lease square feet | ft²	10,659
Lease term	5 years
Lease expire date	2018-10

Commitments and Contingencies -

Commitments and Contingencies - Schedule of Future Minimum Lease Payments (Details)	Sep. 30, 2016USD ($)
Commitments and Contingencies Disclosure [Abstract]
Remainder of 2016	$ 28,400
2,017	114,300
2,018	68,300
Total	$ 211,000

Supplemental Disclosure of Ca61

Supplemental Disclosure of Cash Flow Information (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Payment of interest expense			$ 800	$ 1,400
Payment of income taxes			2,300	3,600
Fair value of warrants liability	$ 54,400	$ (2,400)	29,300	$ 126,900
Warrant [Member]
Fair value of warrants liability			$ 31,600

Earnings (Loss) Per Share (Deta

Earnings (Loss) Per Share (Details Narrative) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Earnings Per Share [Abstract]
Antidilutive securities	1,412,508	33,871,874	1,412,508	33,871,874

Segment Information (Details Na

Segment Information (Details Narrative)	9 Months Ended
	Sep. 30, 2016Segment
Segment Reporting [Abstract]
Number of reportable segments	2

Segment Information - Schedule

Segment Information - Schedule of Revenue by Country (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Revenue by country	$ 898,500	$ 1,128,800	$ 2,864,400	$ 3,958,700
United States [Member]
Revenue by country	370,800	616,800	1,158,100	1,368,300
Brazil [Member]
Revenue by country	122,900	246,100	418,100	415,600
Other Countries [Member]
Revenue by country	$ 404,800	$ 265,900	$ 1,288,200	$ 2,174,800

Related Party Transactions (Det

Related Party Transactions (Details Narrative)	Oct. 11, 2014shares	Nov. 11, 2013shares	Oct. 11, 2012shares	Sep. 30, 2016USD ($)$ / sharesshares	Sep. 30, 2015USD ($)	Sep. 30, 2016USD ($)Installments$ / sharesshares	Sep. 30, 2015USD ($)
Fair value adjustment of warrants | $				$ (54,400)	$ 2,400	$ (29,300)	$ (126,900)
IP Capital Group Inc [Member]
Class of warrant or right, number of securities called by warrants or rights (in shares)				26,667		26,667
Class of warrant or right, exercise price of warrants or rights (in dollars per share) | $ / shares				$ 3.90		$ 3.90
Number of vesting installments | Installments						3
Number of warrants to vest, shares	13,333	13,333	13,333
Remaining warrants to vest, shares						13,333
Warrant term						5 years
General and Administrative Expense [Member]
Fair value adjustment of warrants | $				$ (5,800)	$ 2,000	$ (2,300)	$ 12,300