Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Mar. 31, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity File Number | 0-21683 | ||
Entity Registrant Name | hopTo Inc. | ||
Entity Central Index Key | 0001021435 | ||
Entity Tax Identification Number | 13-3899021 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Address, Address Line One | 189 North Main St. | ||
Entity Address, Address Line Two | Suite 102 | ||
Entity Address, City or Town | Concord | ||
Entity Address, State or Province | NH | ||
Entity Address, Postal Zip Code | 03301 | ||
City Area Code | (800) | ||
Local Phone Number | 472-7466 | ||
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 | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 3,969,777 | ||
Entity Common Stock, Shares Outstanding | 18,850,675 | ||
Auditor Firm ID | 3501 | ||
Auditor Name | dbbmckennon | ||
Auditor Location | Newport Beach, California |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 4,755,300 | $ 4,375,300 |
Marketable Securities | 417,600 | |
Accounts receivable, net | 558,600 | 417,300 |
Prepaid expenses and other current assets | 52,700 | 48,500 |
Total current assets | 5,784,200 | 4,841,100 |
Property and equipment, net | 8,200 | |
Other assets | 17,800 | 17,800 |
Total assets | 5,810,200 | 4,858,900 |
Current liabilities | ||
Accounts payable | 260,800 | 251,000 |
Accrued expenses | 64,200 | 82,000 |
Accrued wages | 108,900 | 141,600 |
Deferred revenue | 1,033,800 | 1,084,900 |
Total current liabilities | 1,467,700 | 1,559,500 |
Long-term liabilities | ||
Deferred revenue | 373,900 | 383,000 |
Total liabilities | 1,841,600 | 1,942,500 |
Commitments and contingencies | ||
Stockholders’ equity | ||
Preferred stock, $0.01 par value, 5,000,000 shares authorized, no shares issued and outstanding as of December 31, 2021 or 2020 | ||
Common stock, $0.0001 par value, 195,000,000 shares authorized, 18,850,675 shares issued and outstanding as of December 31, 2021 and 2020 | 1,900 | 1,900 |
Additional paid-in capital | 82,155,200 | 82,155,200 |
Accumulated deficit | (78,188,500) | (79,240,700) |
Total stockholders’ equity | 3,968,600 | 2,916,400 |
Total liabilities and stockholders’ equity | $ 5,810,200 | $ 4,858,900 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
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 | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
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 | 18,850,675 |
Common stock, shares outstanding | 18,850,675 | 18,850,675 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues: | ||
Total Revenue | $ 3,612,700 | $ 3,644,000 |
Cost of Revenue: | ||
Total cost of revenue | 166,500 | 155,000 |
Gross profit | 3,446,200 | 3,489,000 |
Operating expenses: | ||
Selling and marketing | 606,600 | 509,300 |
General and administrative | 748,800 | 900,500 |
Research and development | 1,435,400 | 1,430,100 |
Total operating expenses | 2,790,800 | 2,839,900 |
Income from operations | 655,400 | 649,100 |
Other income: | ||
Interest and other income | 269,800 | 44,600 |
Unrealized gain | 127,000 | |
Other income | 396,800 | 44,600 |
Income before provision for income taxes | 1,052,200 | 693,700 |
Provision for income taxes | ||
Net income | $ 1,052,200 | $ 693,700 |
Net income per share, basic | $ 0.06 | $ 0.05 |
Net income per share, diluted | $ 0.06 | $ 0.05 |
Weighted average number of common shares outstanding | ||
Basic | 18,850,675 | 13,874,699 |
Diluted | 19,092,837 | 14,117,850 |
License [Member] | ||
Revenues: | ||
Total Revenue | $ 737,800 | $ 853,300 |
Technology Service [Member] | ||
Revenues: | ||
Total Revenue | 2,788,500 | 2,474,500 |
Service, Other [Member] | ||
Revenues: | ||
Total Revenue | 86,400 | 316,200 |
Service [Member] | ||
Cost of Revenue: | ||
Total cost of revenue | 54,000 | 52,700 |
Product [Member] | ||
Cost of Revenue: | ||
Total cost of revenue | $ 112,500 | $ 102,300 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (Deficit) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Balance at Dec. 31, 2019 | $ 1,000 | $ 79,523,500 | $ (79,934,400) | $ (409,900) |
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 | |||
Shares issued for accrued liabilities | 39,600 | 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 | 693,700 | 693,700 | ||
Balance at Dec. 31, 2020 | $ 1,900 | 82,155,200 | (79,240,700) | 2,916,400 |
Balance, shares at Dec. 31, 2020 | 18,850,675 | |||
Net income | 1,052,200 | 1,052,200 | ||
Balance at Dec. 31, 2021 | $ 1,900 | $ 82,155,200 | $ (78,188,500) | $ 3,968,600 |
Balance, shares at Dec. 31, 2021 | 18,850,675 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities | ||
Net income | $ 1,052,200 | $ 693,700 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 1,600 | |
Contributed services | 112,400 | |
Changes in allowance for doubtful accounts | 1,100 | (1,400) |
Gain on sale of patents | (269,800) | |
Unrealized gain from short-term investment | (127,000) | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (142,400) | (144,700) |
Prepaid expenses and other current assets | (4,200) | 10,500 |
Accounts payable | 9,800 | (20,900) |
Accrued expenses | (17,800) | 15,600 |
Accrued wages | (32,700) | 5,200 |
Deferred revenue | (60,200) | (317,600) |
Net cash provided by operating activities | 410,600 | 352,800 |
Cash flows from investing activities | ||
Purchase of marketable securities | (290,600) | |
Proceeds from sale of patents | 269,800 | |
Purchase of property and equipment | (9,800) | |
Net cash used in investing activities | (30,600) | |
Cash flows from financing activities | ||
Proceeds from rights offering | 2,600,000 | |
Issuance cost for rights offering | (119,400) | |
Net cash provided by financing activities | 2,480,600 | |
Net change in cash | 380,000 | 2,833,400 |
Cash, beginning of the period | 4,375,300 | 1,541,900 |
Cash, end of the period | $ 4,755,300 | $ 4,375,300 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [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, 2021 | |
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, 2021, we had working capital of $ 4,316,500 1,033,800 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, 2021 and 2020, 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 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, 2021 and 2020, the allowance for doubtful accounts totaled $ 7,000 5,900 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, 2021 or 2020. 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 seven years 9,800 1,600 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, 2021, the Company had approximately $ 4,505,300 of cash with financial institutions in excess of FDIC insurance limits. For the year ended December 31, 2021, we had one reseller that represented more than 27.8 51.5 15.0 11.9 14.5 44.7 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, 2021 and 2020, representing 242,162 248,216 4,946 93,076 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 assets and liabilities were 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, 2021 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | 3. Accrued Expenses Accrued expenses as of December 31, 2021 and 2020 consisted of the following: Schedule of Accrued Expenses 2021 2020 Consulting services $ 10,600 $ 6,200 Board of director fees 46,000 46,000 Legal fees 2,500 3,100 Reimbursements - 20,300 Other 5,100 6,400 Total $ 64,200 $ 82,000 |
Stockholders_ Equity
Stockholders’ Equity | 12 Months Ended |
Dec. 31, 2021 | |
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 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 100 100 10 110 100 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, 2021, there was 411,593 The following table summarizes the stock option activity for the year ended December 31, 2021 and 2020. Schedule of Stock Options Activity Weighted- Average Weighted- Remaining Average Contractual Exercise Life Options Price (Years) Outstanding at December 31, 2019 106,077 $ 2.77 1.53 Granted - Forfeited/cancelled (13,001 ) Outstanding at December 31, 2020 93,076 $ 3.03 0.74 Granted - Forfeited/cancelled (88,130 ) Exercised - Outstanding at December 31, 2021 4,946 $ 3.86 1.59 Vested and expected to vest at December 31, 2021 4,946 $ 3.86 1.59 Exercisable at December 31, 2021 4,946 $ 3.86 1.59 The following table summarizes information about stock options outstanding and exercisable as of December 31, 2021. Schedule of Stock Options Outstanding and Exercisable 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 $ 1.79 4.00 3,413 1.55 $ 2.59 3,413 $ 2.59 4.20 6.68 1,533 1.69 6.68 1,533 6.68 4,946 4,946 Warrants During the year ended December 31, 20201, the Company did not issue any shares of common stock. During the year ended December 31, 2020, the Company issued 233,119 shares of common stock for the exercise of 233,119 warrants. As of December 31, 2021, and 2020, the Company had 248,216 , warrants outstanding. The warrants outstanding at December 31, 2021 are all exercisable at $ 0.01 and have an expiration date of May 20, 2023 . The following summarized changes in the number of warrants outstanding for the year ended December 31, 2021 and 2020. Schedule of Warrants Outstanding Warrants Outstanding at December 31, 2019 481,335 Granted - Exercised (233,119 ) Outstanding at December 31, 2020 248,216 Granted - Exercised - Outstanding at December 31, 2021 248,216 |
Sales by Geographical Location
Sales by Geographical Location | 12 Months Ended |
Dec. 31, 2021 | |
Sales By Geographical Location | |
Sales by Geographical Location | 5. Sales by Geographical Location Revenue by country for the year ended December 31, 2021 and 2020 was as follows. Schedule of Revenue by Country For the Year Ended December 31, 2021 December 31, 2020 Revenue by Country United States $ 1,457,300 $ 1,276,700 Brazil 869,900 1,117,300 Japan 360,600 338,300 The Netherlands 189,200 307,700 Other Countries 735,700 604,000 Total $ 3,612,700 $ 3,644,000 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 6. Income Taxes The components of the provision (benefit) for income taxes for the years ended December 31, 2021 and 2020 consisted of the following: Schedule of Components of Income Tax Expense (Benefit) 2021 2020 Current Federal $ — $ — State — — Foreign — — Current income tax expense $ — $ — Deferred Federal $ — $ — State — — Foreign — — Deferred income tax expense — — Total $ — $ — The following table summarizes the differences between income tax expense and the amount computed applying the federal income tax rate of 21 Schedule of Effective Income Tax Rate Reconciliation 2021 2020 Federal income tax (benefit) at statutory rate $ 221,000 $ 145,700 State income tax (benefit) at statutory rate 24,000 16,400 SBC – NQ cancellations 61,100 (2,700 ) Change in valuation allowance (2,670,000 ) (2,763,100 ) Meals and entertainment (50%) 200 200 Adjustments and NOL expirations 2,363,700 2,603,500 Contributed services — — 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, 2021 and 2020: Schedule of Deferred Tax Assets and Liabilities 2021 2020 Net operating loss carryforwards $ 9,135,000 $ 11,031,900 Tax credit carryforwards 572,900 977,500 Compensation expense – non-qualified stock options 900 65,800 Deferred revenue and maintenance service contracts 326,500 343,100 Reserves and other 41,600 53,300 Total deferred tax assets 10,076,900 12,471,600 Deferred tax liability – depreciation, amortization and capitalized software 100 — Net deferred tax asset 10,077,000 12,471,600 Valuation allowance (10,077,000 ) (12,471,600 ) Net deferred tax asset $ — $ — For financial reporting purposes, with the exception of the years ended December 31, 2021, 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, 2021 and 2020. The net change in the valuation allowance was decreased by $ 2,395,000 and $ 2,755,000 for the years ended December 31, 2021 and 2020, respectively. At December 31, 2021, the Company had approximately $ 41.2 million of federal net operating loss carryforwards and approximately $ 6.9 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. The Company is subject to U.S. federal and state tax examinations by tax authorities for years 2018 through present. As of December 31, 2021, there are no pending tax examinations. At December 31, 2021, the Company had approximately $ 0.6 expire in 2018 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 7. Commitments and Contingencies Leases Our headquarters in Concord, NH signed a three-year lease on August 1 st 2,500 42,000 48,000 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, 2021. 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, 2021. 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, 2021. 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 both years ended December 31, 2021 and 2020, the Company contributed a total of $ 16,000 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
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 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, 2021 and 2020, the Company recorded an expense and contributed capital of approximately $ 0 112,500 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 2.41 At closing of the Rights Offering, we received net proceeds of $ 480,200 1.6 2.12 7.0 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021, we had working capital of $ 4,316,500 1,033,800 |
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, 2021 and 2020, 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 |
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, 2021 and 2020, the allowance for doubtful accounts totaled $ 7,000 5,900 |
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, 2021 or 2020. |
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 seven years 9,800 1,600 |
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, 2021, the Company had approximately $ 4,505,300 of cash with financial institutions in excess of FDIC insurance limits. For the year ended December 31, 2021, we had one reseller that represented more than 27.8 51.5 15.0 11.9 14.5 44.7 |
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, 2021 and 2020, representing 242,162 248,216 4,946 93,076 |
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 assets and liabilities were 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, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses as of December 31, 2021 and 2020 consisted of the following: Schedule of Accrued Expenses 2021 2020 Consulting services $ 10,600 $ 6,200 Board of director fees 46,000 46,000 Legal fees 2,500 3,100 Reimbursements - 20,300 Other 5,100 6,400 Total $ 64,200 $ 82,000 |
Stockholders_ Equity (Tables)
Stockholders’ Equity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Schedule of Stock Options Activity | The following table summarizes the stock option activity for the year ended December 31, 2021 and 2020. Schedule of Stock Options Activity Weighted- Average Weighted- Remaining Average Contractual Exercise Life Options Price (Years) Outstanding at December 31, 2019 106,077 $ 2.77 1.53 Granted - Forfeited/cancelled (13,001 ) Outstanding at December 31, 2020 93,076 $ 3.03 0.74 Granted - Forfeited/cancelled (88,130 ) Exercised - Outstanding at December 31, 2021 4,946 $ 3.86 1.59 Vested and expected to vest at December 31, 2021 4,946 $ 3.86 1.59 Exercisable at December 31, 2021 4,946 $ 3.86 1.59 |
Schedule of Stock Options Outstanding and Exercisable | The following table summarizes information about stock options outstanding and exercisable as of December 31, 2021. Schedule of Stock Options Outstanding and Exercisable 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 $ 1.79 4.00 3,413 1.55 $ 2.59 3,413 $ 2.59 4.20 6.68 1,533 1.69 6.68 1,533 6.68 4,946 4,946 |
Schedule of Warrants Outstanding | The following summarized changes in the number of warrants outstanding for the year ended December 31, 2021 and 2020. Schedule of Warrants Outstanding Warrants Outstanding at December 31, 2019 481,335 Granted - Exercised (233,119 ) Outstanding at December 31, 2020 248,216 Granted - Exercised - Outstanding at December 31, 2021 248,216 |
Sales by Geographical Location
Sales by Geographical Location (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Sales By Geographical Location | |
Schedule of Revenue by Country | Revenue by country for the year ended December 31, 2021 and 2020 was as follows. Schedule of Revenue by Country For the Year Ended December 31, 2021 December 31, 2020 Revenue by Country United States $ 1,457,300 $ 1,276,700 Brazil 869,900 1,117,300 Japan 360,600 338,300 The Netherlands 189,200 307,700 Other Countries 735,700 604,000 Total $ 3,612,700 $ 3,644,000 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 and 2020 consisted of the following: Schedule of Components of Income Tax Expense (Benefit) 2021 2020 Current Federal $ — $ — State — — Foreign — — Current income tax expense $ — $ — Deferred Federal $ — $ — State — — Foreign — — Deferred income tax expense — — Total $ — $ — |
Schedule of Effective Income Tax Rate Reconciliation | Schedule of Effective Income Tax Rate Reconciliation 2021 2020 Federal income tax (benefit) at statutory rate $ 221,000 $ 145,700 State income tax (benefit) at statutory rate 24,000 16,400 SBC – NQ cancellations 61,100 (2,700 ) Change in valuation allowance (2,670,000 ) (2,763,100 ) Meals and entertainment (50%) 200 200 Adjustments and NOL expirations 2,363,700 2,603,500 Contributed services — — Other items — — Provision (benefit) for income tax $ — $ — |
Schedule of Deferred Tax Assets and Liabilities | Schedule of Deferred Tax Assets and Liabilities 2021 2020 Net operating loss carryforwards $ 9,135,000 $ 11,031,900 Tax credit carryforwards 572,900 977,500 Compensation expense – non-qualified stock options 900 65,800 Deferred revenue and maintenance service contracts 326,500 343,100 Reserves and other 41,600 53,300 Total deferred tax assets 10,076,900 12,471,600 Deferred tax liability – depreciation, amortization and capitalized software 100 — Net deferred tax asset 10,077,000 12,471,600 Valuation allowance (10,077,000 ) (12,471,600 ) Net deferred tax asset $ — $ — |
Significant Accounting Polici_3
Significant Accounting Policies (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Product Information [Line Items] | ||
Working capital | $ 4,316,500 | |
Deferred revenue | 1,033,800 | $ 1,084,900 |
Cash equivalents at carrying value | 0 | 0 |
Allowance for doubtful accounts | 7,000 | $ 5,900 |
Property plant and equipment gross | 9,800 | |
Accumulated depreciation | 1,600 | |
Cash, FDIC Insured Amount | $ 4,505,300 | |
Number of common shares equivalents of outstanding in money warrants | 242,162 | 248,216 |
Anti-dilutive shares | 4,946 | 93,076 |
Accounts Receivable [Member] | Resellers One [Member] | Customer Concentration Risk [Member] | ||
Product Information [Line Items] | ||
Concentration of credit risk percentage | 51.50% | 44.70% |
Accounts Receivable [Member] | Resellers Two [Member] | Customer Concentration Risk [Member] | ||
Product Information [Line Items] | ||
Concentration of credit risk percentage | 15.00% | |
Accounts Receivable [Member] | Resellers Three [Member] | Customer Concentration Risk [Member] | ||
Product Information [Line Items] | ||
Concentration of credit risk percentage | 11.90% | |
Minimum [Member] | ||
Product Information [Line Items] | ||
Property, plant and equipment, useful life | 3 years | |
Minimum [Member] | Accounts Receivable [Member] | Reseller One [Member] | Customer Concentration Risk [Member] | ||
Product Information [Line Items] | ||
Concentration of credit risk percentage | 27.80% | 14.50% |
Maximum [Member] | ||
Product Information [Line Items] | ||
Property, plant and equipment, useful life | 7 years |
Schedule of Accrued Expenses (D
Schedule of Accrued Expenses (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Payables and Accruals [Abstract] | ||
Consulting services | $ 10,600 | $ 6,200 |
Board of director fees | 46,000 | 46,000 |
Legal fees | 2,500 | 3,100 |
Reimbursements | 20,300 | |
Other | 5,100 | 6,400 |
Total | $ 64,200 | $ 82,000 |
Schedule of Stock Options Activ
Schedule of Stock Options Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Equity [Abstract] | |||
Options Outstanding, Beginning Balance | 93,076 | 106,077 | |
Weighted Average Exercise Price, Outstanding Beginning Balance | $ 3.03 | $ 2.77 | |
Weighted Average Remaining Contractual Life (Years) Outstanding, Ending | 1 year 7 months 2 days | 8 months 26 days | 1 year 6 months 10 days |
Options Outstanding, Granted | |||
Options Outstanding, Forfeited/cancelled | (88,130) | (13,001) | |
Options Outstanding, exercised | |||
Options Outstanding, Ending Balance | 4,946 | 93,076 | 106,077 |
Weighted Average Exercise Price, Outstanding Ending Balance | $ 3.86 | $ 3.03 | $ 2.77 |
Options Outstanding, Vested and expected to vest | 4,946 | ||
Weighted Average Exercise Price, Vested and expected to vest | $ 3.86 | ||
Weighted Average Remaining Contractual Life (Years), Vested and expected to vest | 1 year 7 months 2 days | ||
Options Exercisable | 4,946 | ||
Weighted Average Exercise Price | $ 3.86 | ||
Weighted Average Remaining Contractual Life (Years) Exercisable | 1 year 7 months 2 days |
Schedule of Stock Options Outst
Schedule of Stock Options Outstanding and Exercisable (Details) | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Options Outstanding, Number of shares | shares | 4,946 |
Options Exercisable, Number of shares | shares | 4,946 |
Exercise Price Range 1 [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 | 3,413 |
Options Outstanding, Weighted Average Remaining Life (Years) | 1 year 6 months 18 days |
Options Outstanding, Weighted Average Exercise Price | $ 2.59 |
Options Exercisable, Number of shares | shares | 3,413 |
Options Exercisable, Weighted Average Exercise Price | $ 2.59 |
Exercise Price Range 2 [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 | 1,533 |
Options Outstanding, Weighted Average Remaining Life (Years) | 1 year 8 months 8 days |
Options Outstanding, Weighted Average Exercise Price | $ 6.68 |
Options Exercisable, Number of shares | shares | 1,533 |
Options Exercisable, Weighted Average Exercise Price | $ 6.68 |
Schedule of Warrants Outstandin
Schedule of Warrants Outstanding (Details) - shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Equity [Abstract] | ||
Warrants Outstanding, Beginning balance | 248,216 | 481,335 |
Warrants Outstanding, Granted | ||
Warrants Outstanding, Exercised | (233,119) | |
Warrants Outstanding, ending balance | 248,216 | 248,216 |
Stockholders_ Equity (Details N
Stockholders’ Equity (Details Narrative) - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
[custom:CommonStockIssuedForExerciseOfWarrants] | 233,119 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Exercised | 233,119 | |
Class of Warrant or Right, Outstanding | 248,216 | |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.01 | |
Warrants and Rights Outstanding, Maturity Date | May 20, 2023 | |
2012 Equity Incentive Plan [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Stock option authorized shares | 643,797 | |
2012 Equity Incentive Plan [Member] | Common Stock [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Common stock remained available for issuance | 411,593 | |
2012 Equity Incentive Plan [Member] | Non Qualified Stock Options [Member] | Minimum [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Stock options percentage | 100.00% | |
2012 Equity Incentive Plan [Member] | Non Qualified Stock Options [Member] | Maximum [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Stock options percentage | 110.00% | |
2012 Equity Incentive Plan [Member] | Incentive stock options [Member] | Minimum [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Stock options percentage | 10.00% | |
2012 Equity Incentive Plan [Member] | Incentive stock options [Member] | Maximum [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Stock options percentage | 100.00% | |
2012 Equity Incentive Plan [Member] | Restricted Stock [Member] | Minimum [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Stock options percentage | 100.00% |
Schedule of Revenue by Country
Schedule of Revenue by Country (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue by country | $ 3,612,700 | $ 3,644,000 |
UNITED STATES | ||
Revenue by country | 1,457,300 | 1,276,700 |
BRAZIL | ||
Revenue by country | 869,900 | 1,117,300 |
JAPAN | ||
Revenue by country | 360,600 | 338,300 |
NETHERLANDS | ||
Revenue by country | 189,200 | 307,700 |
Other Countries [Member] | ||
Revenue by country | $ 735,700 | $ 604,000 |
Schedule of Components of Incom
Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Federal | ||
State | ||
Foreign | ||
Current income tax expense | ||
Federal | ||
State | ||
Foreign | ||
Deferred income tax expense | ||
Total |
Schedule of Effective Income Ta
Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Federal income tax (benefit) at statutory rate | $ 221,000 | $ 145,700 |
State income tax (benefit) at statutory rate | 24,000 | 16,400 |
SBC – NQ cancellations | 61,100 | (2,700) |
Change in valuation allowance | (2,670,000) | (2,763,100) |
Meals and entertainment (50%) | 200 | 200 |
Adjustments and NOL expirations | 2,363,700 | 2,603,500 |
Contributed services | ||
Other items | ||
Provision (benefit) for income tax |
Schedule of Deferred Tax Assets
Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Income Tax Disclosure [Abstract] | ||
Net operating loss carryforwards | $ 9,135,000 | $ 11,031,900 |
Tax credit carryforwards | 572,900 | 977,500 |
Compensation expense – non-qualified stock options | 900 | 65,800 |
Deferred revenue and maintenance service contracts | 326,500 | 343,100 |
Reserves and other | 41,600 | 53,300 |
Total deferred tax assets | 10,076,900 | 12,471,600 |
Deferred tax liability – depreciation, amortization and capitalized software | 100 | |
Net deferred tax asset | 10,077,000 | 12,471,600 |
Valuation allowance | (10,077,000) | (12,471,600) |
Net deferred tax asset |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Loss Carryforwards [Line Items] | ||
Federal income tax rate | 21.00% | 21.00% |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ 2,395,000 | $ 2,755,000 |
Percentage of cumulative ownership | 50.00% | |
Domestic Tax Authority [Member] | Research Tax Credit Carryforward [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss expiration date | expire in 2018 | |
Tax credit carryforward, amount | $ 600,000 | |
Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating Loss Carryforwards | $ 41,200,000 | |
Operating loss expiration date | expire in 2021 | |
State and Local Jurisdiction [Member] | California Franchise Tax Board [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating Loss Carryforwards | $ 6,900,000 | |
Operating loss expiration date | expire in 2028 |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Product Liability Contingency [Line Items] | ||
Rent expense | $ 42,000 | $ 48,000 |
Profit sharing plans | 16,000 | |
Concord, NH Headquarters [Member] | ||
Product Liability Contingency [Line Items] | ||
Rent expense | $ 2,500 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) $ / shares in Units, shares in Thousands | Dec. 31, 2021 | Jan. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
Contributed expenses | $ 0 | $ 112,500 | ||
Proceeds from offering | $ 2,600,000 | |||
Backstop Agreement [Member] | ||||
Number of restricted shares of common stock, value | $ 2,120,000 | |||
Number of restricted shares of common stock | 7,000 | |||
Rights Offering [Member] | ||||
Number of shares issued in private placement | 1,600 | |||
Proceeds from offering | $ 480,200 | |||
Jonathon R. Skeels [Member] | ||||
Base salary | $ 200,000 | |||
Accredited Investors [Member] | Backstop Agreement [Member] | Novelty Capital Partners LP [Member] | ||||
Shares issued purchase price, per share | $ 0.30 | |||
Accredited Investors [Member] | Backstop Agreement [Member] | Novelty Capital Partners LP [Member] | Maximum [Member] | ||||
Number of shares issued in private placement | 2,410 |