Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Mar. 31, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Entity Registrant Name | hopTo Inc. | ||
Entity Central Index Key | 0001021435 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2020 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business Flag | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2,111,134 | ||
Entity Common Stock, Shares Outstanding | 18,850,675 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2020 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 4,375,300 | $ 1,541,900 |
Accounts receivable, net | 417,300 | 271,200 |
Prepaid expenses and other current assets | 48,500 | 59,000 |
Total current assets | 4,841,100 | 1,872,100 |
Property and equipment, net | ||
Other assets | 17,800 | 17,800 |
Total assets | 4,858,900 | 1,889,900 |
Current liabilities | ||
Accounts payable | 251,000 | 271,900 |
Accrued expenses | 82,000 | 106,000 |
Accrued wages | 141,600 | 136,400 |
Deferred revenue | 1,084,900 | 1,256,000 |
Total current liabilities | 1,559,500 | 1,770,300 |
Long-term liabilites | ||
Deferred revenue | 383,000 | 529,500 |
Total liabilities | 1,942,500 | 2,299,800 |
Commitments and contingencies | ||
Stockholders' equity (deficit) | ||
Preferred stock, $0.01 par value, 5,000,000 shares authorized, no shares issued and outstanding as of December 31, 2020 or 2019 | ||
Common stock, $0.0001 par value, 195,000,000 shares authorized, 18,850,675 and 9,834,866 shares issued and outstanding as of December 31, 2020 and 2019, respectively | 1,900 | 1,000 |
Additional paid-in capital | 82,155,200 | 79,523,500 |
Accumulated deficit | (79,240,700) | (79,934,400) |
Total stockholders' equity (deficit) | 2,916,400 | (409,900) |
Total liabilities and stockholders' equity (deficit) | $ 4,858,900 | $ 1,889,900 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
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 | 18,850,675 | 9,834,866 |
Common stock, shares outstanding | 18,850,675 | 9,834,866 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues: | ||
Total Revenue | $ 3,644,000 | $ 3,530,100 |
Cost of Revenue: | ||
Total cost of revenue | 155,000 | 149,800 |
Gross profit | 3,489,000 | 3,380,300 |
Operating expenses: | ||
Selling and marketing | 509,300 | 442,400 |
General and administrative | 900,500 | 864,700 |
Research and development | 1,430,100 | 1,533,000 |
Total operating expenses | 2,839,900 | 2,840,100 |
Income from operations | 649,100 | 540,200 |
Other income: | ||
Other income | 44,600 | 14,100 |
Income before provision for income taxes | 693,700 | 554,300 |
Provision for income taxes | ||
Net income | $ 693,700 | $ 554,300 |
Net income per share, basic | $ 0.05 | $ 0.06 |
Net income per share, diluted | $ 0.05 | $ 0.05 |
Weighted average number of common shares outstanding | ||
Basic | 13,874,699 | 9,821,177 |
Diluted | 14,117,850 | 10,287,183 |
Software License [Member] | ||
Revenues: | ||
Total Revenue | $ 853,300 | $ 952,600 |
Software Service Fees [Member] | ||
Revenues: | ||
Total Revenue | 2,474,500 | 2,483,600 |
Other [Member] | ||
Revenues: | ||
Total Revenue | 316,200 | 93,900 |
Software Service Costs [Member] | ||
Cost of Revenue: | ||
Total cost of revenue | 52,700 | 52,700 |
Software Product Costs [Member] | ||
Cost of Revenue: | ||
Total cost of revenue | $ 102,300 | $ 97,100 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (Deficit) - USD ($) | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Deficit [Member] | Total |
Beginning balance at Dec. 31, 2018 | $ 1,000 | $ 79,298,200 | $ (80,488,700) | $ (1,189,500) |
Beginning balance, shares at Dec. 31, 2018 | 9,804,400 | |||
Contributed services | 225,100 | 225,100 | ||
Cashless exercise of warrants | 300 | 300 | ||
Cashless exercise of warrants, shares | 30,466 | |||
Other rounding | (100) | (100) | ||
Shares issued for accrued liabilities | ||||
Shares issued for accrued liabilities, shares | ||||
Proceeds from rights offering | ||||
Proceeds from rights offering, shares | ||||
Issuance cost for rights offering | ||||
Net Income (loss) | 554,300 | 554,300 | ||
Ending balance at Dec. 31, 2019 | $ 1,000 | 79,523,500 | (79,934,400) | (409,900) |
Ending balance, shares at Dec. 31, 2019 | 9,834,866 | |||
Contributed services | 112,400 | 112,400 | ||
Cashless exercise of warrants | ||||
Cashless exercise of warrants, shares | 229,141 | |||
Other rounding | ||||
Shares issued for accrued liabilities | 39,600 | |||
Shares issued for accrued liabilities, shares | 120,000 | |||
Proceeds from rights offering | $ 900 | 2,599,100 | 2,600,000 | |
Proceeds from rights offering, shares | 8,666,668 | |||
Issuance cost for rights offering | (119,400) | (119,400) | ||
Net Income (loss) | 693,700 | 693,700 | ||
Ending balance at Dec. 31, 2020 | $ 1,900 | $ 82,155,200 | $ (79,240,700) | $ 2,916,400 |
Ending balance, shares at Dec. 31, 2020 | 18,850,675 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities | ||
Net income | $ 693,700 | $ 554,300 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 400 | |
Contributed services | 112,400 | 225,100 |
Changes in allowance for doubtful accounts | (1,400) | 3,700 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (144,700) | (64,100) |
Prepaid expenses and other current assets | 10,500 | 20,000 |
Accounts payable | (20,900) | (46,800) |
Accrued expenses | 15,600 | (15,600) |
Accrued wages | 5,200 | (9,400) |
Deposit liability | (12,100) | |
Deferred revenue | (317,600) | (6,300) |
Net cash provided by operating activities | 352,800 | 649,200 |
Cash flows from financing activities | ||
Proceeds from rights offering | 2,600,000 | |
Issuance cost for rights offering | (119,400) | |
Proceeds from exercise of warrants | 300 | |
Other rounding | (100) | |
Net cash provided by financing activities | 2,480,600 | 200 |
Net change in cash | 2,833,400 | 649,400 |
Cash, beginning of the year | 1,541,900 | 892,500 |
Cash, end of the year | $ 4,375,300 | $ 1,541,900 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | 1. Organization hopTo Inc., a Delaware corporation, through its wholly-owned subsidiary GraphOn Corporation (collectively, “we”, “us,” “our” or the “Company”) are developers of application publishing software which includes application virtualization software and cloud computing software for multiple computer operating systems including Windows, UNIX and several Linux-based variants. The Company sells a family of products under the brand name GO-Global, which is a software application publishing business and is the Company’s sole revenue source at this time. GO-Global is an application access solution for use and/or resale by independent software vendors, corporate enterprises, governmental and educational institutions, and others, who wish to take advantage of cross-platform remote access and Web-enabled access to their existing software applications, as well as those who are deploying secure, private cloud environments. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 2. Significant Accounting Policies Basis of Presentation The consolidated financial statements include the accounts of hopTo Inc. and its wholly-owned subsidiaries. All significant intercompany accounts and transactions are eliminated upon consolidation. The consolidated financial statements included herein have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) applicable to financial information and the rules and regulations promulgated by the Securities and Exchange Commission (the “SEC”). Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reported periods. Amounts could materially change in the future. These estimates include the allowance for doubtful accounts and contributed services. While the Company believes that such estimates are fair, actual results could differ materially from those estimates. Liquidity The Company has incurred significant net losses since inception. As of December 31, 2020, we had working capital of $3,281,600, which includes deferred revenue of $1,084,900. Our ability to continue to generate net income and positive cash flows from operations is dependent on our ability to continue to generate revenue from our legacy GO-Global business, which in turn is subject to a variety of risks. The Company believes its current cash balances coupled with anticipated cash flow from operating activities will be sufficient to meet its working capital requirements for at least one year from the date of the issuance of the accompanying financial statements. The Company continues to control its cash expenses as a percentage of expected revenue on an annual basis and thus may use its cash balances in the short-term to invest in revenue growth. Based on current internal projections, the Company believes it has and/or will generate sufficient cash for its operational needs, for at least one year from the date of issuance of the accompanying financial statements. Management is focused on growing the Company’s existing product offering, as well as its customer base, to increase its revenues. The Company cannot give assurance that it can increase its cash balances or limit its cash consumption and thus maintain sufficient cash balances for its planned operations or future acquisitions. Future business demands may lead to cash utilization at levels greater than recently experienced. The Company may need to raise additional capital in the future. However, the Company cannot assure that it will be able to raise additional capital on acceptable terms, or at all. Revenue Recognition The Company markets and licenses its products indirectly through channel distributors, value-added resellers, independent software vendors (“ISVs”), hosting service providers, 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. There are no rights of return granted to purchasers of the Company’s software products. The Company recognizes revenue in accordance with Accounting Standards Codification (“ASC”) 606, “Revenue from Contracts with Customers.” Revenues under ASC 606 are recognized when the promised goods or services are transferred to customers in an amount that reflects the consideration to which the Company expects to be entitled to in exchange for those goods or services. For the years ended December 31, 2020 and 2019, revenue recognition was determined by ● identifying the contract, or contracts, with a customer; ● identifying the performance obligations in each contract; ● determine the transaction price; ● allocating the transaction price to the performance obligations in each contract; and ● recognizing revenue when, or as, we satisfy performance obligations by transferring the promised goods or services When control of the promised products and services are transferred to our customers, we recognize revenue in the amount that reflects the consideration we expect to receive in exchange for these products and services. Product Sales All of our licenses are delivered to the customer electronically. The Company sends the license key to the customer to download the related software from Company portal. We recognize revenue upon delivery of these licenses. For stocking resellers who purchase licenses through inventory stocking orders with the intent to resell to an end-user, revenue is recognized when the resellers’ accounts have been credited, at their discretion, for the number of licenses purchased. Maintenance revenue was also recognized from service contracts ratably over the related contract period. The Company operates in one reportable segment. The Company’s product sales by geographic area are presented in Note 6. Cash and Cash Equivalents The Company considers all highly liquid holdings with maturities of three months or less at the time of purchase to be cash equivalents. The Company had no cash equivalents as of December 31, 2020 or 2019. 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. As of December 31, 2020 and 2019, the allowance for doubtful accounts totaled $5,900 and $7,300, respectively. 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. No such impairment charge was recorded during the years ended December 31, 2020 or 2019. Property and Equipment Property and equipment are recorded at historical cost and depreciated on a straight-line basis over their estimated useful lives ranging from three to seven years. All of our existing property and equipment are fully depreciated. Software Development Costs Under the criteria set forth in Financial Accounting Standards Board’s (FASB) Accounting Standards Codification (ASC) 985-20, “Costs of Software to be Sold, Leased or Marketed,” Concentration of Credit Risk Financial instruments, which potentially subject the Company to concentration of credit risk, consist principally of cash and trade receivables. The Company places its cash with high quality financial institutions and, by policy, limits the amount of credit exposure to any one financial institution. As of December 31, 2020, the Company had approximately $4,125,300 of cash with financial institutions in excess of FDIC insurance limits. For the year ended December 31, 2020, we had one reseller that represented more than 14.5% of sales and one reseller that represented 44.7% of accounts receivable. For the year ended December 31, 2019, we had two resellers that represented 14.0% and 14.3% of sales, respectively and one reseller that represented 17.9% of accounts receivable. For the purposes of this description, “sales” refers to the dollar value of orders received from these customers and partners in the period indicated. The sales values do not necessarily equal recognized revenue for these periods due to our revenue recognition policies which require deferral of revenue associated with prepaid software service fees. The loss of one of these resellers would not have a material impact as the Company could take over the end customer relationship. Income Taxes The Company accounts for income taxes in accordance with ASC 740, “Income Taxes,” using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. Basic and Diluted Earnings Per Share In accordance with ASC 260, “Earnings Per Share,” the basic income (loss) per common share is computed by dividing the net income (loss) available to common stockholders by the weighted average common shares outstanding during the period. Diluted income (loss) per share reflect per share amounts that would have resulted if diluted potential common stock had been converted to common stock. Dilutive common share equivalents as of December 31, 2020 and 2019, representing 248,216 and 481,335 outstanding in-the-money warrants respectively, were included in the computation of diluted net income (loss) per share using the Treasury Stock Method. During the year ended December 31, 2020 and 2019, the Company had total common stock equivalents of 93,076 and 106,077 shares, respectively, which excluded from the computation of net income per share because they are anti-dilutive. Stock-Based Compensation The Company applies the fair value recognition provisions of FASB ASC 718-10, “ Compensation – Stock Compensation. Fair Value of Financial Instruments The Company’s financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable, and accrued expenses. The carrying amount of these financial instruments approximates fair value due to the nature of the accounts and their short-term maturities. The fair value of the Company’s warrants are determined in accordance with FASB 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. We do not have level 2 and 3 liabilities or assets. |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | 3. Accrued Expenses Accrued expenses as of December 31, 2020 and 2019 consisted of the following: 2020 2019 Consulting services $ 6,200 $ 2,000 Board of director fees 46,000 85,600 Legal fees 3,100 6,400 Reimbursements 20,300 - Other 6,400 12,000 $ 82,000 $ 106,000 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | 4. Stockholders’ Equity Stock-Based Compensation Plans In November 2012, the Company’s 2012 Equity Incentive Plan (the “12 Plan”) was approved by the stockholders. Pursuant to the terms of the 12 Plan, stock options, stock appreciation rights, restricted stock and restricted stock units (sometimes referred to individually or collectively as “awards”) may be granted to officers and other employees, non-employee directors and independent consultants and advisors who render services to the Company. The Company is authorized to issue options to purchase up to 643,797 shares of common stock, stock appreciation rights, or restricted stock in accordance with the terms of the 12 Plan. In the case of a restricted stock award, the entire number of shares subject to such award would be issued at the time of the grant and subject to vesting provisions based on time or other conditions specified by the Board or an authorized committee of the Board. For awards based on time, should the grantee’s service to the Company end before full vesting occurred, all unvested shares would be forfeited and returned to the Company. In the case of awards granted with vesting provisions based on specific performance conditions, if those conditions were not met, then all shares would be forfeited and returned to the Company. Until forfeited, all shares issued under a restricted stock award would be considered outstanding for dividend, voting and other purposes. Under the 12 Plan, the exercise price of non-qualified stock options granted is to be no less than 100% of the fair market value of the Company’s common stock on the date the option is granted. The exercise price of incentive stock options granted is to be no less than 100% of the fair market value of the Company’s common stock on the date the option is granted provided, however, that if the recipient of the incentive stock option owns greater than 10% of the voting power of all shares of the Company’s capital stock then the exercise price will be no less than 110% of the fair market value of the Company’s common stock on the date the option is granted. The purchase price of the restricted stock issued under the 12 Plan shall also not be less than 100% of the fair market value of the Company’s common stock on the date the restricted stock is granted. All options granted under the 12 Plan are immediately exercisable by the optionee; however, there is a vesting period for the options. The options (and the shares of common stock issuable upon exercise of such options) vest, ratably, over a 33-month period; however, no options (and the underlying shares of common stock) vest until after three months from the date of the option grant. The exercise price is immediately due upon exercise of the option. The maximum term of options issued under the 12 Plan is ten years. Shares issued upon exercise of options are subject to the Company’s repurchase, which right lapses as the shares vest. The 12 Plan will terminate no later than November 7, 2022. As of December 31, 2020, 411,593 shares of common stock remained available for issuance under the 12 Plan. The following table summarizes the stock option activity for the year ended December 31, 2020 and 2019. Weighted- Average Weighted- Remaining Average Contractual Exercise Life Options Price (Years) Outstanding at December 31, 2018 117,675 $ 2.57 2.28 Granted - Forfeited/cancelled (11,598 ) Outstanding at December 31, 2019 106,077 $ 2.77 1.53 Granted - Forfeited/cancelled (13,001 ) Exercised - Outstanding at December 31, 2020 93,076 $ 3.03 0.74 Vested and expected to vest at December 31, 2020 93,076 $ 3.03 0.74 Exercisable at December 31, 2020 93,076 $ 3.03 0.74 The following table summarizes information about stock options outstanding and exercisable as of December 31, 2020. Options Outstanding Options Exercisable Weighted- Weighted- Range of Average Average Average Exercise Number Remaining Exercise Number Exercise Price of Shares Life (Years) Price of Shares Price $ 0.75 - 1.00 14,526 0.03 $ 0.75 14,526 $ 0.75 1.79 - 4.00 63,684 0.87 3.21 63,684 3.21 4.20 - 6.68 14,866 0.89 4.46 14,866 4.46 93,076 93,076 Warrants During the year ended December 31, 2020, the Company issued 233,119 shares of common stock for the exercise of 233,119 warrants. During the year ended December 31, 2019, the Company issued 30,466 shares of common stock for the exercise of 30,466 warrants. As of December 31, 2020, and 2019, the Company had 248,216 and 481,335 warrants outstanding, respectively. The warrants outstanding at December 31, 2020 are all exercisable at $0.01 and have an expiration date of May 20, 2023. Rights Offering See Note 8. The following summarized changes in the number of warrants outstanding for the year ended December 31, 2020 and 2019. Warrants Outstanding at December 31, 2018 622,912 Granted - Forfeited/cancelled (111,111 ) Exercised (30,466 ) Outstanding at December 31, 2019 481,335 Exercised (233,119 ) Outstanding at December 31, 2020 248,216 |
Sales by Geographical Location
Sales by Geographical Location | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Sales by Geographical Location | 5. Sales by Geographical Location Revenue by country for the year ended December 31, 2020 and 2019 was as follows. For the Year Ended December 31, 2020 December 31, 2019 Revenue by Country United States $ 1,276,700 $ 1,133,400 Brazil 1,117,300 580,800 Japan 338,300 410,000 The Netherlands 307,700 445,100 Other Countries 604,000 960,800 Total $ 3,644,000 $ 3,530,100 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 6. Income Taxes The components of the provision (benefit) for income taxes for the years ended December 31, 2020 and 2019 consisted of the following: 2020 2019 Current Federal $ — $ — State — — Foreign — — $ — $ — Deferred Federal $ — $ — State — — Foreign — — — — Total $ — $ — The following table summarizes the differences between income tax expense and the amount computed applying the federal income tax rate of 21% for the years ended December 31, 2020 and 2019, respectively: 2020 2019 Federal income tax (benefit) at statutory rate $ 145,700 $ 116,400 State income tax (benefit) at statutory rate 16,400 13,900 SBC – NQ cancellations (2,700 ) (2,700 ) Change in valuation allowance (2,763,100 ) (284,900 ) Meals and entertainment (50%) 200 1,000 Adjustments and NOL expirations 2,603,500 103,400 Contributed services — 52,900 Other items — — Provision (benefit) for income tax $ — $ — Deferred income taxes and benefits result from temporary timing differences in the recognition of certain expense and income items for tax and financial reporting purposes. The following table sets forth those differences as of December 31, 2020 and 2019: 2020 2019 Net operating loss carryforwards $ 11,031,900 $ 13,702,300 Tax credit carryforwards 977,500 977,500 Compensation expense – non-qualified stock options 65,800 69,000 Deferred revenue and maintenance service contracts 343,100 419,800 Depreciation, amortization, and capitalized software — — Reserves and other 53,300 58,200 Total deferred tax assets 12,471,600 15,226,800 Deferred tax liability – depreciation, amortization and capitalized software — — Net deferred tax asset 12,471,600 15,226,800 Valuation allowance (12,471,600 ) (15,226,800 ) Net deferred tax asset $ — $ — For financial reporting purposes, with the exception of the years ended December 31, 2020 and 2019, the Company has incurred a loss in each year since inception. Based on the available objective evidence, management believes it is more likely than not that the net deferred tax assets will not be fully realizable. Accordingly, the Company has provided a full valuation allowance against its net deferred tax assets at December 31, 2020 and 2019. The net change in the valuation allowance was decreased by $2,755,000 and $276,000 for the years ended December 31, 2020 and 2019, respectively. At December 31, 2020, the Company had approximately $50.3 million of federal net operating loss carryforwards and approximately $6.8 million of California state net operating loss carryforwards available to reduce future taxable income. The federal loss carryforwards began to expire in 2021 and the California state loss carry forwards begin to expire in 2028. Under the Tax Reform Act of 1986, the amount of benefits from net operating loss carryforwards may be impaired or limited if the Company incurs a cumulative ownership change of more than 50%, as defined, over a three-year period. At December 31, 2020, the Company had approximately $1.0 million of federal research and development tax credits that began to expire in 2018. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 7. Commitments and Contingencies Leases Our headquarters in Concord, NH is a month-to-month rent basis, requiring a six-month notice from the lessor to terminate. Rent on the corporate headquarters continues at $4,000 per month. Rent expense aggregated approximately $48,000 for both years ended December 31, 2020 and 2019. Contingencies Under its Amended and Restated Certificate of Incorporation and Second Amended and Restated Bylaws and certain agreements with officers and directors, the Company has agreed to indemnify its officers and directors for certain events or occurrences arising as a result of the officer’s or director’s serving in such capacity. Generally, the term of the indemnification period is for the officer’s or director’s lifetime. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is limited as the Company currently has a directors and officers liability insurance policy that limits its exposure and enables it to recover a portion of any future amounts paid. The Company believes the estimated fair value of these indemnification agreements is minimal and has no liabilities recorded for these agreements as of December 31, 2020. The Company enters into indemnification provisions under (i) its agreements with other companies in its ordinary course of business, including contractors and customers and (ii) its agreements with investors. Under these provisions, the Company generally indemnifies and holds harmless the indemnified party for losses suffered or incurred by the indemnified party as a result of the Company’s activities or, in some cases, as a result of the indemnified party’s activities under the agreement. These indemnification provisions often include indemnifications relating to representations made by the Company with regard to intellectual property rights, and often survive termination of the underlying agreement. The maximum potential amount of future payments the Company could be required to make under these indemnification provisions is unlimited. The Company has not incurred material costs to defend lawsuits or settle claims related to these indemnification agreements. As a result, the Company believes the estimated fair value of these agreements is minimal. Accordingly, the Company has no liabilities recorded for these agreements as of December 31, 2020. The Company’s software license agreements also generally include a performance guarantee that the Company’s software products will operate substantially as described in the applicable program documentation for a period of 90 days after delivery. The Company also generally warrants that services that the Company performs will be provided in a manner consistent with reasonably applicable industry standards. To date, the Company has not incurred any material costs associated with these warranties and has no liabilities recorded for these agreements as of December 31, 2020. Profit Sharing Plans The Company has adopted a 401(k) plan to provide retirement benefits for employees under which the Company makes discretionary matching contributions. During the years ended December 31, 2020 and 2019, the Company contributed a total of $16,000 and $14,100, respectively. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 8. Related Party Transactions On September 30, 2020, the Company entered into an executive employment agreement with Jonathon R. Skeels, the Company’s Chief Executive Officer and Interim Chief Financial Officer, effective as of July 1, 2020. Pursuant to the Agreement, Mr. Skeels is entitled to receive a base salary of $200,000 per year and other compensation to be determined from time to time by the Company in its sole discretion. The Agreement also entitles Mr. Skeels to participate in the Company’s employee benefit plans and be reimbursed for expenses incurred in connection with his service to the Company. If Mr. Skeels’ employment is terminated without cause (as defined in the Agreement) the Company will, against the receipt of a mutual release, pay Mr. Skeels an amount equal to 12 months of his annual base salary and pay the premiums for continuation of Mr. Skeels and his family’s health insurance for up to 12 months following his termination. Mr. Skeels has served as the Company’s Chief Executive Officer and Interim Chief Financial Officer since September 2018, however, previously did not receive a salary or other forms of compensation. During the years ended December 31, 2020 and 2019, the Company recorded an expense and contributed capital of approximately $112,400, and $225,100, respectively for contributed services based on the estimated market rate for these services. Mr. Skeels controls an entity named Novelty Capital Partners LP that is a significant shareholder in the Company. On January 31, 2020, we entered into the Backstop Agreement (the “Backstop Agreement”) with a consortium of accredited investors, including all of our directors and led by Novelty Capital Partners LP, pursuant to which such investors agreed to purchase in a private placement, at $0.30 per share, up to 2.41 million of shares of our common stock. The consummation of the investment pursuant to the Backstop Agreement was conditioned on the closing of our subscription rights offering to all of our stockholders (the “Rights Offering”). The Rights Offering expired on March 31, 2020, and we consummated the Backstop Agreement transactions on August 13, 2020. At closing of the Rights Offering, we received net proceeds of $480,200 in exchange for 1.6 million shares of common stock. Pursuant to the Backstop Agreement, we received gross proceeds of $2.12 million in exchange for the issuance of 7.0 million restricted shares of common stock. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements include the accounts of hopTo Inc. and its wholly-owned subsidiaries. All significant intercompany accounts and transactions are eliminated upon consolidation. The consolidated financial statements included herein have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) applicable to financial information and the rules and regulations promulgated by the Securities and Exchange Commission (the “SEC”). |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reported periods. Amounts could materially change in the future. These estimates include the allowance for doubtful accounts and contributed services. While the Company believes that such estimates are fair, actual results could differ materially from those estimates. |
Liquidity | Liquidity The Company has incurred significant net losses since inception. As of December 31, 2020, we had working capital of $3,281,600, which includes deferred revenue of $1,084,900. Our ability to continue to generate net income and positive cash flows from operations is dependent on our ability to continue to generate revenue from our legacy GO-Global business, which in turn is subject to a variety of risks. The Company believes its current cash balances coupled with anticipated cash flow from operating activities will be sufficient to meet its working capital requirements for at least one year from the date of the issuance of the accompanying financial statements. The Company continues to control its cash expenses as a percentage of expected revenue on an annual basis and thus may use its cash balances in the short-term to invest in revenue growth. Based on current internal projections, the Company believes it has and/or will generate sufficient cash for its operational needs, for at least one year from the date of issuance of the accompanying financial statements. Management is focused on growing the Company’s existing product offering, as well as its customer base, to increase its revenues. The Company cannot give assurance that it can increase its cash balances or limit its cash consumption and thus maintain sufficient cash balances for its planned operations or future acquisitions. Future business demands may lead to cash utilization at levels greater than recently experienced. The Company may need to raise additional capital in the future. However, the Company cannot assure that it will be able to raise additional capital on acceptable terms, or at all. |
Revenue Recognition | Revenue Recognition The Company markets and licenses its products indirectly through channel distributors, value-added resellers, independent software vendors (“ISVs”), hosting service providers, 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. There are no rights of return granted to purchasers of the Company’s software products. The Company recognizes revenue in accordance with Accounting Standards Codification (“ASC”) 606, “Revenue from Contracts with Customers.” Revenues under ASC 606 are recognized when the promised goods or services are transferred to customers in an amount that reflects the consideration to which the Company expects to be entitled to in exchange for those goods or services. For the years ended December 31, 2020 and 2019, revenue recognition was determined by ● identifying the contract, or contracts, with a customer; ● identifying the performance obligations in each contract; ● determine the transaction price; ● allocating the transaction price to the performance obligations in each contract; and ● recognizing revenue when, or as, we satisfy performance obligations by transferring the promised goods or services When control of the promised products and services are transferred to our customers, we recognize revenue in the amount that reflects the consideration we expect to receive in exchange for these products and services. Product Sales All of our licenses are delivered to the customer electronically. The Company sends the license key to the customer to download the related software from Company portal. We recognize revenue upon delivery of these licenses. For stocking resellers who purchase licenses through inventory stocking orders with the intent to resell to an end-user, revenue is recognized when the resellers’ accounts have been credited, at their discretion, for the number of licenses purchased. Maintenance revenue was also recognized from service contracts ratably over the related contract period. The Company operates in one reportable segment. The Company’s product sales by geographic area are presented in Note 6. |
Cash and Cash equivalents | Cash and Cash Equivalents The Company considers all highly liquid holdings with maturities of three months or less at the time of purchase to be cash equivalents. The Company had no cash equivalents as of December 31, 2020 or 2019. |
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. As of December 31, 2020 and 2019, the allowance for doubtful accounts totaled $5,900 and $7,300, respectively. |
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. No such impairment charge was recorded during the years ended December 31, 2020 or 2019. |
Property and Equipment | Property and Equipment Property and equipment are recorded at historical cost and depreciated on a straight-line basis over their estimated useful lives ranging from three to seven years. All of our existing property and equipment are fully depreciated. |
Software Development Costs | Software Development Costs Under the criteria set forth in Financial Accounting Standards Board’s (FASB) Accounting Standards Codification (ASC) 985-20, “Costs of Software to be Sold, Leased or Marketed,” |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments, which potentially subject the Company to concentration of credit risk, consist principally of cash and trade receivables. The Company places its cash with high quality financial institutions and, by policy, limits the amount of credit exposure to any one financial institution. As of December 31, 2020, the Company had approximately $4,125,300 of cash with financial institutions in excess of FDIC insurance limits. For the year ended December 31, 2020, we had one reseller that represented more than 14.5% of sales and one reseller that represented 44.7% of accounts receivable. For the year ended December 31, 2019, we had two resellers that represented 14.0% and 14.3% of sales, respectively and one reseller that represented 17.9% of accounts receivable. For the purposes of this description, “sales” refers to the dollar value of orders received from these customers and partners in the period indicated. The sales values do not necessarily equal recognized revenue for these periods due to our revenue recognition policies which require deferral of revenue associated with prepaid software service fees. The loss of one of these resellers would not have a material impact as the Company could take over the end customer relationship. |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with ASC 740, “Income Taxes,” using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. |
Basic and Diluted Earnings Per Share | Basic and Diluted Earnings Per Share In accordance with ASC 260, “Earnings Per Share,” the basic income (loss) per common share is computed by dividing the net income (loss) available to common stockholders by the weighted average common shares outstanding during the period. Diluted income (loss) per share reflect per share amounts that would have resulted if diluted potential common stock had been converted to common stock. Dilutive common share equivalents as of December 31, 2020 and 2019, representing 248,216 and 481,335 outstanding in-the-money warrants respectively, were included in the computation of diluted net income (loss) per share using the Treasury Stock Method. During the year ended December 31, 2020 and 2019, the Company had total common stock equivalents of 93,076 and 106,077 shares, respectively, which excluded from the computation of net income per share because they are anti-dilutive. |
Stock-Based Compensation | Stock-Based Compensation The Company applies the fair value recognition provisions of FASB ASC 718-10, “ Compensation – Stock Compensation. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company’s financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable, and accrued expenses. The carrying amount of these financial instruments approximates fair value due to the nature of the accounts and their short-term maturities. The fair value of the Company’s warrants are determined in accordance with FASB 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. We do not have level 2 and 3 liabilities or assets. |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses as of December 31, 2020 and 2019 consisted of the following: 2020 2019 Consulting services $ 6,200 $ 2,000 Board of director fees 46,000 85,600 Legal fees 3,100 6,400 Reimbursements 20,300 - Other 6,400 12,000 $ 82,000 $ 106,000 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity | The following table summarizes the stock option activity for the year ended December 31, 2020 and 2019. Weighted- Average Weighted- Remaining Average Contractual Exercise Life Options Price (Years) Outstanding at December 31, 2018 117,675 $ 2.57 2.28 Granted - Forfeited/cancelled (11,598 ) Outstanding at December 31, 2019 106,077 $ 2.77 1.53 Granted - Forfeited/cancelled (13,001 ) Exercised - Outstanding at December 31, 2020 93,076 $ 3.03 0.74 Vested and expected to vest at December 31, 2020 93,076 $ 3.03 0.74 Exercisable at December 31, 2020 93,076 $ 3.03 0.74 |
Schedule of Share-based Compensation, Shares Authorized Under Stock Option Plans, by Exercise Price Range | The following table summarizes information about stock options outstanding and exercisable as of December 31, 2020. Options Outstanding Options Exercisable Weighted- Weighted- Range of Average Average Average Exercise Number Remaining Exercise Number Exercise Price of Shares Life (Years) Price of Shares Price $ 0.75 - 1.00 14,526 0.03 $ 0.75 14,526 $ 0.75 1.79 - 4.00 63,684 0.87 3.21 63,684 3.21 4.20 - 6.68 14,866 0.89 4.46 14,866 4.46 93,076 93,076 |
Schedule of Warrants Outstanding | The following summarized changes in the number of warrants outstanding for the year ended December 31, 2020 and 2019. Warrants Outstanding at December 31, 2018 622,912 Granted - Forfeited/cancelled (111,111 ) Exercised (30,466 ) Outstanding at December 31, 2019 481,335 Exercised (233,119 ) Outstanding at December 31, 2020 248,216 |
Sales by Geographical Location
Sales by Geographical Location (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Revenue by Country | Revenue by country for the year ended December 31, 2020 and 2019 was as follows. For the Year Ended December 31, 2020 December 31, 2019 Revenue by Country United States $ 1,276,700 $ 1,133,400 Brazil 1,117,300 580,800 Japan 338,300 410,000 The Netherlands 307,700 445,100 Other Countries 604,000 960,800 Total $ 3,644,000 $ 3,530,100 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The components of the provision (benefit) for income taxes for the years ended December 31, 2020 and 2019 consisted of the following: 2020 2019 Current Federal $ — $ — State — — Foreign — — $ — $ — Deferred Federal $ — $ — State — — Foreign — — — — Total $ — $ — |
Schedule of Effective Income Tax Rate Reconciliation | The following table summarizes the differences between income tax expense and the amount computed applying the federal income tax rate of 21% for the years ended December 31, 2020 and 2019, respectively: 2020 2019 Federal income tax (benefit) at statutory rate $ 145,700 $ 116,400 State income tax (benefit) at statutory rate 16,400 13,900 SBC – NQ cancellations (2,700 ) (2,700 ) Change in valuation allowance (2,763,100 ) (284,900 ) Meals and entertainment (50%) 200 1,000 Adjustments and NOL expirations 2,603,500 103,400 Contributed services — 52,900 Other items — — Provision (benefit) for income tax $ — $ — |
Schedule of Deferred Tax Assets and Liabilities | The following table sets forth those differences as of December 31, 2020 and 2019: 2020 2019 Net operating loss carryforwards $ 11,031,900 $ 13,702,300 Tax credit carryforwards 977,500 977,500 Compensation expense – non-qualified stock options 65,800 69,000 Deferred revenue and maintenance service contracts 343,100 419,800 Depreciation, amortization, and capitalized software — — Reserves and other 53,300 58,200 Total deferred tax assets 12,471,600 15,226,800 Deferred tax liability – depreciation, amortization and capitalized software — — Net deferred tax asset 12,471,600 15,226,800 Valuation allowance (12,471,600 ) (15,226,800 ) Net deferred tax asset $ — $ — |
Significant Accounting Polici_3
Significant Accounting Policies (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Working capital | $ 3,281,600 | |
Deferred revenue | 1,084,900 | $ 1,256,000 |
Cash equivalents | ||
Allowance for doubtful accounts | 5,900 | $ 7,300 |
Cash, FDIC insured amount | $ 4,125,300 | |
Number of common shares equivalents of outstanding in money warrants | 248,216 | 481,335 |
Shares of common stock equivalents excluded from computation of diluted earnings per share | 93,076 | 106,077 |
Sales [Member] | Reseller One [Member] | ||
Concentration of credit risk percentage | 14.00% | |
Sales [Member] | Reseller Two [Member] | ||
Concentration of credit risk percentage | 14.30% | |
Accounts Receivable [Member] | Reseller One [Member] | ||
Concentration of credit risk percentage | 44.70% | 17.90% |
Minimum [Member] | ||
Property, plant and equipment, useful life | 3 years | |
Minimum [Member] | Sales [Member] | Reseller One [Member] | ||
Concentration of credit risk percentage | 14.50% | |
Maximum [Member] | ||
Property, plant and equipment, useful life | 7 years |
Accrued Expenses - Schedule of
Accrued Expenses - Schedule of Accrued Expenses (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Payables and Accruals [Abstract] | ||
Consulting services | $ 6,200 | $ 2,000 |
Board of director fees | 46,000 | 85,600 |
Legal fees | 3,100 | 6,400 |
Reimbursements | 20,300 | |
Other | 6,400 | 12,000 |
Accrued expenses | $ 82,000 | $ 106,000 |
Stockholders' Equity (Details N
Stockholders' Equity (Details Narrative) - USD ($) | Jan. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Proceeds from offering | $ 2,600,000 | ||
Number of common stock issued for exercise of warrants | 233,119 | 30,466 | |
Warrants outstanding | 248,216 | 481,335 | |
Warrants outstanding exercisable price | $ 0.01 | ||
Warrants expiration date | May 20, 2023 | ||
Backstop Agreement [Member] | |||
Number of restricted shares of common stock, value | $ 2,120,000 | ||
Number of restricted shares of common stock | 7,000,000 | ||
Backstop Agreement [Member] | Accredited Investors [Member] | Novelty Capital Partners LP [Member] | |||
Shares issued purchase price, per share | $ 0.30 | ||
Backstop Agreement [Member] | Rights Offering [Member] | Novelty Capital Partners LP [Member] | |||
Debt instrument maturity date | Mar. 31, 2020 | ||
Rights Offering [Member] | |||
Number of shares issued in private placement | 1,600,000 | ||
Proceeds from offering | $ 480,200 | ||
Maximum [Member] | Backstop Agreement [Member] | Accredited Investors [Member] | Novelty Capital Partners LP [Member] | |||
Number of shares issued in private placement | 2,410,000 | ||
2012 Equity Incentive Plan [Member] | |||
Share-based compensation arrangement by share-based payment award, number of shares authorized | 643,797 | ||
Plan terminate term | The 12 Plan will terminate no later than November 7, 2022. | ||
Share-based compensation arrangement by share-based payment award, number of shares available for grant | 411,593 | ||
2012 Equity Incentive Plan [Member] | Non Qualified Stock Options [Member] | Minimum [Member] | |||
Share-based compensation arrangement by share-based payment award, purchase price of common stock, percent | 100.00% | ||
2012 Equity Incentive Plan [Member] | Incentive Stock Options [Member] | Minimum [Member] | |||
Share-based compensation arrangement by share-based payment award, purchase price of common stock, percent | 10.00% | ||
2012 Equity Incentive Plan [Member] | Incentive Stock Options [Member] | Minimum [Member] | If Recipient Owns Greater Than Ten Percent Voting Power [Member] | |||
Share-based compensation arrangement by share-based payment award, purchase price of common stock, percent | 110.00% | ||
2012 Equity Incentive Plan [Member] | Restricted Stock [Member] | Minimum [Member] | |||
Share-based compensation arrangement by share-based payment award, purchase price of common stock, percent | 100.00% |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Share-based Compensation, Stock Options, Activity (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Equity [Abstract] | ||
Options Outstanding, Beginning Balance | 106,077 | 117,675 |
Options Outstanding, Granted | ||
Options Outstanding, Forfeited/cancelled | (13,001) | (11,598) |
Options Outstanding, Exercised | ||
Options Outstanding, Ending Balance | 93,076 | 106,077 |
Options Outstanding, Vested and expected to vest at June 30, 2020 | 93,076 | |
Options Exercisable at December 31, 2020 | 93,076 | |
Weighted Average Exercise Price, Outstanding Beginning Balance | $ 2.77 | $ 2.57 |
Weighted Average Exercise Price, Granted | ||
Weighted Average Exercise Price, Forfeited/cancelled | ||
Weighted Average Exercise Price, Exercised | ||
Weighted Average Exercise Price, Outstanding Ending Balance | 3.03 | $ 2.77 |
Weighted Average Exercise Price, Vested and expected to vest at December 31, 2020 | 3.03 | |
Weighted Average Exercise Price, Exercisable at December 31, 2020 | $ 3.03 | |
Weighted Average Remaining Contractual Life (Years) Outstanding, Beginning Balance | 1 year 6 months 10 days | 2 years 3 months 11 days |
Weighted Average Remaining Contractual Life (Years) Outstanding, Ending Balance | 8 months 26 days | 1 year 6 months 10 days |
Weighted Average Remaining Contractual Life (Years), Vested and expected to vest at December 31, 2020 | 8 months 26 days | |
Weighted Average Remaining Contractual Life (Years) Exercisable at December 31, 2020 | 8 months 26 days |
Stockholders' Equity - Schedu_2
Stockholders' Equity - Schedule of Share-based Compensation, Shares Authorized Under Stock Option Plans, by Exercise Price Range (Details) | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Options Outstanding, Number of shares | shares | 93,076 |
Options Exercisable, Number of shares | shares | 93,076 |
Exercise Price Range 1 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise Price Range, Lower Range Limit | $ 0.75 |
Exercise Price Range, Upper Range Limit | $ 1 |
Options Outstanding, Number of shares | shares | 14,526 |
Options Outstanding, Weighted Average Remaining Life (Years) | 11 days |
Options Outstanding, Weighted Average Exercise Price | $ 0.75 |
Options Exercisable, Number of shares | shares | 14,526 |
Options Exercisable, Weighted Average Exercise Price | $ 0.75 |
Exercise Price Range 2 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise Price Range, Lower Range Limit | 1.79 |
Exercise Price Range, Upper Range Limit | $ 4 |
Options Outstanding, Number of shares | shares | 63,684 |
Options Outstanding, Weighted Average Remaining Life (Years) | 10 months 14 days |
Options Outstanding, Weighted Average Exercise Price | $ 3.21 |
Options Exercisable, Number of shares | shares | 63,684 |
Options Exercisable, Weighted Average Exercise Price | $ 3.21 |
Exercise Price Range 3 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise Price Range, Lower Range Limit | 4.20 |
Exercise Price Range, Upper Range Limit | $ 6.68 |
Options Outstanding, Number of shares | shares | 14,866 |
Options Outstanding, Weighted Average Remaining Life (Years) | 10 months 21 days |
Options Outstanding, Weighted Average Exercise Price | $ 4.46 |
Options Exercisable, Number of shares | shares | 14,866 |
Options Exercisable, Weighted Average Exercise Price | $ 4.46 |
Stockholders' Equity - Schedu_3
Stockholders' Equity - Schedule of Warrants Outstanding (Details) - Warrant [Member] - shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Warrants Outstanding, beginning balance | 481,335 | 622,912 |
Warrants Outstanding, Granted | ||
Warrants Outstanding, Forfeited/cancelled | (111,111) | |
Warrants Outstanding, Exercised | (233,119) | (30,466) |
Warrants Outstanding, ending balance | 248,216 | 481,335 |
Sales by Geographical Locatio_2
Sales by Geographical Location - Schedule of Revenue by Country (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue by country | $ 3,644,000 | $ 3,530,100 |
United States [Member] | ||
Revenue by country | 1,276,700 | 1,133,400 |
Brazil [Member] | ||
Revenue by country | 1,117,300 | 580,800 |
Japan [Member] | ||
Revenue by country | 338,300 | 410,000 |
The Netherlands [Member] | ||
Revenue by country | 307,700 | 445,100 |
Other Countries [Member] | ||
Revenue by country | $ 604,000 | $ 960,800 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Note 10 - Income Taxes (Details) [Line Items] | ||
Federal income tax rate | 21.00% | 21.00% |
Valuation allowance, deferred tax asset, increase (decrease), amount | $ 2,755,000 | $ 276,000 |
Percentage of cumulative ownership | 50.00% | |
Domestic Tax Authority [Member] | Research Tax Credit Carryforward [Member] | ||
Note 10 - Income Taxes (Details) [Line Items] | ||
Operating loss expiration date | Expire in 2018 | |
Tax credit carryforward, amount | $ 1,000,000 | |
Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | ||
Note 10 - Income Taxes (Details) [Line Items] | ||
Operating loss carryforwards | $ 50,300,000 | |
Operating loss expiration date | Expire in 2021 | |
State and Local Jurisdiction [Member] | California Franchise Tax Board [Member] | ||
Note 10 - Income Taxes (Details) [Line Items] | ||
Operating loss carryforwards | $ 6,800,000 | |
Operating loss expiration date | Expire in 2028 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Federal | ||
State | ||
Foreign | ||
Current income tax expense | ||
Federal | ||
State | ||
Foreign | ||
Deferred income tax expense | ||
Provision (benefit) for income tax |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Federal income tax (benefit) at statutory rate | $ 145,700 | $ 116,400 |
State income tax (benefit) at statutory rate | 16,400 | 13,900 |
SBC - NQ cancellations | (2,700) | (2,700) |
Change in valuation allowance | (2,763,100) | (284,900) |
Meals and entertainment (50%) | 200 | 1,000 |
Adjustments and NOL expirations | 2,603,500 | 103,400 |
Contributed services | 52,900 | |
Other items | ||
Provision (benefit) for income tax |
Income Taxes - Schedule of Ef_2
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) (Parenthetical) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Meals and entertainment, percent | 50.00% | 50.00% |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Income Tax Disclosure [Abstract] | ||
Net operating loss carryforwards | $ 11,031,900 | $ 13,702,300 |
Tax credit carryforwards | 977,500 | 977,500 |
Compensation expense - non-qualified stock options | 65,800 | 69,000 |
Deferred revenue and maintenance service contracts | 343,100 | 419,800 |
Depreciation, amortization, and capitalized software | ||
Reserves and other | 53,300 | 58,200 |
Total deferred tax assets | 12,471,600 | 15,226,800 |
Deferred tax liability - depreciation, amortization and capitalized software | ||
Net deferred tax asset | 12,471,600 | 15,226,800 |
Valuation allowance | (12,471,600) | (15,226,800) |
Net deferred tax asset |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Rent expense | $ 48,000 | $ 48,000 |
Profit sharing plans | 16,000 | $ 14,100 |
Concord, NH Headquarters [Member] | ||
Rent expense | $ 4,000 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | Dec. 31, 2020 | Jan. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Contributed services | $ 112,400 | $ 225,100 | ||
Proceeds from offering | 2,600,000 | |||
Jonathon R. Skeels [Member] | ||||
Base salary | $ 200,000 | |||
Backstop Agreement [Member] | ||||
Number of restricted shares of common stock, value | $ 2,120,000 | |||
Number of restricted shares of common stock | 7,000,000 | |||
Backstop Agreement [Member] | Accredited Investors [Member] | Novelty Capital Partners LP [Member] | ||||
Shares issued purchase price, per share | $ 0.30 | |||
Backstop Agreement [Member] | Accredited Investors [Member] | Novelty Capital Partners LP [Member] | Maximum [Member] | ||||
Number of shares issued in private placement | 2,410,000 | |||
Backstop Agreement [Member] | Rights Offering [Member] | Novelty Capital Partners LP [Member] | ||||
Debt instrument maturity date | Mar. 31, 2020 | |||
Rights Offering [Member] | ||||
Number of shares issued in private placement | 1,600,000 | |||
Proceeds from offering | $ 480,200 |