Helios and Matheson Analytics (HMNY) 10-Q 14 May 15 2015 Q1 Quarterly report Financial data

Document_And_Entity_Informatio

Document And Entity Information	3 Months Ended
	Mar. 31, 2015	1-May-15
Entity Registrant Name	Helios & Matheson Analytics Inc.
Entity Central Index Key	1040792
Current Fiscal Year End Date	-19
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		2,330,438
Document Type	10-Q
Document Period End Date	31-Mar-15
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1
Amendment Flag	FALSE

Consolidated_Balance_Sheet_Cur

Consolidated Balance Sheet (Current Period Unaudited) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Current Assets:
Cash and cash equivalents	$890,176	$1,225,518
Accounts receivable- less allowance for doubtful accounts of $45,070 at March 31, 2015, and $34,212 at December 31, 2014	1,570,010	1,082,088
Unbilled receivables	45,152	81,311
Prepaid expenses and other current assets	160,688	133,045
Total current assets	2,666,026	2,521,962
Property and equipment, net	50,357	53,422
Security Deposit	2,000,000	2,000,000
Deposits and other assets	52,347	52,347
Total assets	4,768,730	4,627,731
Current Liabilities:
Accounts payable and accrued expenses	708,020	618,181
Total current liabilities	708,020	618,181
Commitments and Contingencies
Shareholders' equity:
Preferred stock, $.01 par value; 2,000,000 shares authorized; no shares issued and outstanding as of March 31, 2015, and December 31, 2014
Common stock, $.01 par value; 30,000,000 shares authorized; 2,330,438 issued and outstanding as of March 31, 2015 and December 31, 2014	23,304	23,304
Paid-in capital	37,855,740	37,855,740
Accumulated other comprehensive loss - foreign currency translation	-103,195	-99,265
Accumulated deficit	-33,715,139	-33,770,229
Total shareholders' equity	4,060,710	4,009,550
Total liabilities and shareholders' equity	$4,768,730	$4,627,731

Consolidated_Balance_Sheet_Cur1

Consolidated Balance Sheet (Current Period Unaudited) (Parentheticals) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Allowance for doubtful accounts	$45,070	$34,212
Preferred stock, par value (in dollars per share)	$0.01	$0.01
Preferred stock, shares authorized (in shares)	2,000,000	2,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$0.01	$0.01
Common stock, shares authorized (in shares)	30,000,000	30,000,000
Common stock, issued (in shares)	2,330,438	2,330,438
Common stock, outstanding (in shares)	2,330,438	2,330,438

Consolidated_Statement_of_Oper

Consolidated Statement of Operations and Comprehensive Income/(Loss) (Unaudited) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Revenues	$2,493,512	$2,934,386
Cost of revenues	1,872,261	2,398,905
Gross profit	621,251	535,481
Operating expenses:
Selling, general & administrative	562,913	618,540
Depreciation & amortization	3,065	2,250
	565,978	620,790
(Loss)/income from operations	55,273	-85,309
Other income(expense):
Interest income-net	2,817	2,838
	2,817	2,838
(Loss)/income before income taxes	58,090	-82,471
Provision for income taxes	3,000	3,000
Net (Loss)/income	55,090	-85,471
Other comprehensive Income - foreign currency adjustment	-3,930	4,577
Comprehensive Income/(loss)	$51,160	($80,894)
Net income/(Loss) per share
Basic & Diluted (in dollars per share)	$0.02	($0.04)
Dividend per share (in dollars per share)		$0.08

Consolidated_Statement_of_Cash

Consolidated Statement of Cash Flows (Unaudited) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Cash flows from operating activities:
Net income/(loss)	$55,090	($85,471)
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities
Depreciation and amortization	3,065	2,250
Provision for doubtful accounts	-10,858	-6,000
Loss on sale of fixed assets		-39
Changes in operating assets and liabilities:
Accounts receivable	-477,064	619,025
Unbilled receivables	36,159	-49,562
Prepaid expenses and other assets	-27,643	-38,032
Accounts payable and accrued expenses	89,839	-7,989
Net cash flows (used in)/provided by operating activities	-331,412	434,260
Cash flows from investing activities:
Purchase of Property and Equipment (net of sales)		7
Net cash flows provided by financing activities		7
Cash flows from financing activities:
Dividend Paid		-186,435
Net cash flows used in financing activities		-186,435
Effect of foreign currency exchange rate changes on cash and cash equivalents	-3,930	4,577
Net increase/(decrease) in cash and cash equivalents	-335,342	252,409
Cash and cash equivalents at beginning of period	1,225,518	660,278
Cash and cash equivalents at end of period	890,176	912,687
Supplemental disclosure of cash flow information:
Cash paid during the period for income taxes - net of refunds	$971	$4,252

Note_1_General

Note 1 - General	3 Months Ended
	Mar. 31, 2015
Notes to Financial Statements
Basis of Accounting [Text Block]	1)     GENERAL:
	These financial statements should be read in conjunction with the financial statements contained in
	Helios and Matheson Analytics Inc.’s (“Helios and Matheson” or the “Company”) Form 10-K for the year ended December 31, 2014 filed with the Securities and Exchange Commission (“SEC”) and the accompanying financial statements and related notes thereto. The accounting policies used in preparing these financial statements are the same as those described in the Company's Form 10-K for the year ended December 31, 2014.

Note_2_Controlled_Company

Note 2 - Controlled Company	3 Months Ended
	Mar. 31, 2015
Notes to Financial Statements
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block]	2)     CONTROLLED COMPANY:
	The Board of Directors has determined that Helios and Matheson meets the definition of a “Controlled Company” as defined by Rule 5615(c) of the NASDAQ Listing Rules. A “Controlled Company” is defined in Rule 5615(c) as a company of which more than 50% of the voting power for the election of directors is held by an individual, group or another company. Certain NASDAQ requirements do not apply to a “Controlled Company”, including requirements that: (i) a majority of its Board of Directors must be comprised of “independent” directors as defined in NASDAQ’s rules; and (ii) the compensation of officers and the nomination of directors be determined in accordance with specific rules, generally requiring determinations by committees comprised solely of independent directors or in meetings at which only the independent directors are present.

Note_3_Interim_Financial_State

Note 3 - Interim Financial Statements	3 Months Ended
	Mar. 31, 2015
Notes to Financial Statements
Quarterly Financial Information [Text Block]	3)     INTERIM FINANCIAL STATEMENTS:
	In the opinion of management, the accompanying unaudited consolidated financial statements contain all the adjustments (consisting only of normal recurring accruals) necessary to present fairly the consolidated financial position as of March 31, 2015, the consolidated results of operations for the three month periods ended March 31, 2015 and 2014 and cash flows for the three month periods ended March 31, 2015 and 2014.
	The consolidated balance sheet at December 31, 2014 has been derived from the audited financial statements at that date, but certain information and notes normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted from these financial statements pursuant to the SEC’s rules and regulations. For further information, refer to the audited consolidated financial statements and footnotes thereto included in the Form 10-K filed by the Company for the year ended December 31, 2014.
	For the three month period ended March 31, 2015, the Company reported a net income of approximately $55,000 and for the three month period ended March 31, 2014, the Company reported net loss of approximately ($85,000). The Company continues to focus on revenue growth by expanding its existing client market share and its client base and by
	providing a Flexible Delivery Model to clients, which allows for dynamically configurable “right shoring” of service delivery based on client needs. The Company also keeps a tight rein on discretionary expenditures and SG&A to enhance its competitiveness.
	In management's opinion, cash flows from operations combined with cash on hand will provide adequate flexibility for funding the Company's working capital obligations for the next twelve months.

Note_4_Stock_Based_Compensatio

Note 4 - Stock Based Compensation	3 Months Ended
	Mar. 31, 2015
Notes to Financial Statements
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	4)     STOCK BASED COMPENSATION:
	The Company has a stock based compensation plan, which is described as follows:
	On March 3, 2014, the Board of Directors terminated the Company’s 1997 Stock Option and Award Plan and
	approved and adopted the Helios and Matheson Analytics Inc. 2014 Equity Incentive Plan (the “2014 Plan”). There were no shares outstanding under the 1997 Stock Option and Award Plan. The 2014 Plan sets aside and reserves 400,000 shares of the Company’s common stock for grant and issuance in accordance with its terms and conditions. Persons eligible to receive awards from the 2014 Plan include employees (including officers and directors) of the Company and its affiliates, consultants who provide significant services to the Company or its affiliates and directors who are not employees of the Company or its affiliates (the “Participants”). The 2014 Plan permits the Company to issue to Participants qualified and/or non-qualified options to purchase the Company’s common stock, restricted common stock, performance units and performance shares. The 2014 Plan will terminate on March 3, 2024. The Compensation Committee of the Company’s Board of Directors has been appointed as the committee responsible for administration of the 2014 Plan and has the sole discretion to determine which Participants will be granted awards and the terms and conditions of the awards granted. Through the date of filing of this Form 10-Q awards have been granted under the 2014 Plan.

Note_5_Net_IncomeLoss_Per_Shar

Note 5 - Net Income/(Loss) Per Share	3 Months Ended
	Mar. 31, 2015
Notes to Financial Statements
Earnings Per Share [Text Block]	5)     NET INCOME
	/(LOSS)
	PER SHARE
	:
	The following table sets forth the computation of basic and diluted net income/(loss) per share for the three months ended March 31, 2015 and 2014:
		Three Months Ended
		March 31,
		2015		2014
	Numerator for basic net income/(loss) per share
	Net income/(loss) available to common stockholders	$	55,090	$	(85,471	)
	Numerator for diluted net income/(loss) per share
	Net income/(loss) available to common stockholders & assumed conversion	$	55,090	$	(85,471	)
	Denominator:
	Denominator for basic and diluted income/(loss) per share - weighted-average shares		2,330,438		2,330,438
	Basic and diluted income/(loss) per share:
	Net income/(loss) per share	$	0.02	$	(0.04	)

Note_6_Concentration_of_Credit

Note 6 - Concentration of Credit Risk	3 Months Ended
	Mar. 31, 2015
Notes to Financial Statements
Concentration Risk Disclosure [Text Block]	6)     CONCENTRATION OF CREDIT RISK:
	The revenues of the Company’s top four customers represented approximately 91.4% of the revenues for the three month period ended March 31, 2015. The revenues of the Company’s top three customers represented approximately 85.2% of revenues for the same period in 2014. No other customer represented greater than 10% of the Company’s revenues for such periods. The Company continues its effort to broaden its customer base in order to mitigate this risk.

Note_7_Contractual_Obligations

Note 7 - Contractual Obligations and Commitments	3 Months Ended
	Mar. 31, 2015
Notes to Financial Statements
Commitments Disclosure [Text Block]	7)     CONTRACTUAL OBLIGATIONS AND COMMITMENTS:
	The Company’s commitments at March 31, 2015, are comprised of the following:
		Payments Due by Period
	Contractual Obligations	Total		Less Than 1 Year		1 - 3 Years		3 - 5 Years		More Than 5 Years
	Operating Lease Obligations
	Rent	$	327,167	$	157,040	$	170,127	$	-	$	-
	-1
	Total	$	327,167	$	157,040	$	170,127	$	-	$	-
	-1
	The Company has a New York facility with a lease term expiring April 30, 2017.
	As of March 31, 2015, the Company does not have any “Off Balance Sheet Arrangements”.

Note_8_Provision_for_Income_Ta

Note 8 - Provision for Income Taxes	3 Months Ended
	Mar. 31, 2015
Notes to Financial Statements
Income Tax Disclosure [Text Block]	8) PROVISION FOR INCOME TAXES
	The provision for income taxes as reflected in the consolidated statement of operations and comprehensive income/(loss) varies from the expected statutory rate primarily due to a provision for minimum state taxes and the recording of adjustments to the valuation allowance against deferred tax assets. Internal Revenue Code Section 382 (the “Code”) places a limitation on the utilization of Federal net operating loss and other credit carry-forwards when an ownership change, as defined by the tax law, occurs. Generally, this occurs when a greater than 50 percent change in ownership occurs. During 2006, Helios and Matheson Information Technology Ltd. (“Helios and Matheson Parent”) acquired a greater than 50 percent ownership of the Company. Accordingly, the actual utilization of the net operating loss carry-forwards for tax purposes are limited annually under the Code to a percentage (currently about four and a half percent) of the fair market value of the Company at the date of this ownership change. The Company maintains a valuation allowance against additional deferred tax assets arising from net operating loss carry-forwards since, 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.

Note_9_Transactions_With_Relat

Note 9 - Transactions With Related Persons	3 Months Ended
	Mar. 31, 2015
Notes to Financial Statements
Related Party Transactions Disclosure [Text Block]	9) TRANSACTIONS WITH RELATED PERSONS
	In September 2010, the Company entered into a Memorandum of Understanding with Helios and Matheson Parent (the “HMIT MOU”) pursuant to which Helios and Matheson Parent has agreed to make available to the Company facilities of dedicated Off-shore Development Centers (“ODCs”) and also render services by way of support in technology, client engagement, management and operating the ODCs for the Company. The Company has furnished Helios and Matheson Parent a security deposit of $2 million, classified as a non-current asset on the balance sheet, to cover any expenses, claims or damages that Helios and Matheson Parent may incur while discharging its obligation under the HMIT MOU and also to cover the Company’s payable to Helios and Matheson Parent. Helios and Matheson Parent was providing recruitment services to Helios and Matheson Analytics Inc. during 2014 and did not charge a fee for these services. For the purpose of strengthening our client relationships, Helios and Matheson Parent also provides knowledge transition free of cost to clients. The amount payable to Helios and Matheson Parent for services rendered under the HMIT MOU was $0 and $12,096 for the three months ended March 31, 2015 and 2014, respectively and is included as a component of cost of revenue. All payments to Helios and Matheson Parent under the MOU are made after collections are received from clients. No amount was paid to Helios and Matheson Parent for services rendered under the HMIT MOU for the three months ended March 31, 2015 and 2014. As of March 31, 2015, the Company has a receivable from Helios and Matheson Parent in the amount of $182,626 which represents the amount paid by the Company on behalf of Helios and Matheson Parent. As of March 31, 2015, the amount paid on behalf of Helios and Matheson Parent is reported as an offset to accounts payable to Helios and Matheson Parent.
	In August 2014, the Company entered into a Professional Service Agreement with Helios and Matheson Parent (the “HMIT PSA”), which documented ongoing services provided by Helios and Matheson Parent from February 24, 2014. Pursuant to the HMIT PSA Helios and Matheson Parent hires employees in India and provides infrastructure services for those employees to facilitate the operations of those of the Company’s clients who need offshore support for their business. For the services the Company pays the cost incurred by Helios and Matheson Parent for the employee it hires to provide the services and a fixed fee for infrastructure support. Beginning October 2014, all employees were transferred to the payroll of the Company’s subsidiary, Helios and Matheson Global Services Pvt. Ltd., and Helios and Matheson Parent was paid only for the infrastructure support they are providing. For the three months ended March 31, 2015 and 2014, the Company’s revenue from services provided with offshore support was approximately $574,000 and $0 respectively. The amount payable to Helios and Matheson Parent for services rendered under the HMIT PSA was $58,000 for the three months ended March 31, 2015 and is included as component of cost of revenue. The amount paid to Helios and Matheson Parent for services rendered, including prepayment of certain expenses, under the HMIT PSA for the three months ended March 31, 2015 was $82,000.

Note_10_Legal_Proceedings

Note 10 - Legal Proceedings	3 Months Ended
	Mar. 31, 2015
Notes to Financial Statements
Legal Matters and Contingencies [Text Block]	10)      LEGAL PROCEEDINGS
	None.

Note_11_Dividend_Paid

Note 11 - Dividend Paid	3 Months Ended
	Mar. 31, 2015
Notes to Financial Statements
Stockholders' Equity Note Disclosure [Text Block]	11) DIVIDEND PAID
	On February 3, 2014 the Company’s Board of Directors declared a dividend of $0.08 per share on the Company's common stock, amounting to a total payout of $186,435. This amount represents approximately 50% of the net profits of the Company for the year ended December 31, 2013. The dividend was paid on March 5, 2014 to shareholders of record on February 18, 2014. There can be no assurance that we will pay dividends in the future.

Note_12_Subsequent_Events

Note 12 - Subsequent Events	3 Months Ended
	Mar. 31, 2015
Notes to Financial Statements
Subsequent Events [Text Block]	12) SUBSEQUENT EVENTS
	Management completed an analysis of all subsequent events occurring after March 31, 2015, the balance sheet date, through May 14, 2015, the date upon which the quarter-end consolidated financial statements were issued, and determined that all necessary disclosures have been disclosed elsewhere in these financial statements.

Note_5_Net_IncomeLoss_Per_Shar1

Note 5 - Net Income/(Loss) Per Share (Tables)	3 Months Ended
	Mar. 31, 2015
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]		Three Months Ended
		March 31,
		2015		2014
	Numerator for basic net income/(loss) per share
	Net income/(loss) available to common stockholders	$	55,090	$	(85,471	)
	Numerator for diluted net income/(loss) per share
	Net income/(loss) available to common stockholders & assumed conversion	$	55,090	$	(85,471	)
	Denominator:
	Denominator for basic and diluted income/(loss) per share - weighted-average shares		2,330,438		2,330,438
	Basic and diluted income/(loss) per share:
	Net income/(loss) per share	$	0.02	$	(0.04	)

Note_7_Contractual_Obligations1

Note 7 - Contractual Obligations and Commitments (Tables)	3 Months Ended
	Mar. 31, 2015
Notes Tables
Contractual Obligation, Fiscal Year Maturity Schedule [Table Text Block]		Payments Due by Period
	Contractual Obligations	Total		Less Than 1 Year		1 - 3 Years		3 - 5 Years		More Than 5 Years
	Operating Lease Obligations
	Rent	$	327,167	$	157,040	$	170,127	$	-	$	-
	-1
	Total	$	327,167	$	157,040	$	170,127	$	-	$	-

Note_3_Interim_Financial_State1

Note 3 - Interim Financial Statements (Details Textual) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	$55,090	($85,471)
Approximation [Member]
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	$55,000	($85,000)

Note_4_Stock_Based_Compensatio1

Note 4 - Stock Based Compensation (Details Textual)	3 Months Ended
	Mar. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number	0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	0
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	400,000

Note_5_Net_LossIncome_Per_Shar

Note 5 - Net (Loss)/Income Per Share - Basic EPS Numerator and Denominator (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Numerator for basic net income/(loss) per share
Net income/(loss)	$55,090	($85,471)
Numerator for diluted net income/(loss) per share
Net income/(loss) available to common stockholders & assumed conversion	$55,090	($85,471)
Denominator:
Denominator for basic and diluted income/(loss) per share - weighted-average shares (in shares)	2,330,438	2,330,438
Basic and diluted income/(loss) per share:
Net income/(loss) per share (in dollars per share)	$0.02	($0.04)

Note_6_Concentration_of_Credit1

Note 6 - Concentration of Credit Risk (Details Textual) (Customer Concentration Risk [Member], Sales Revenue, Services, Net [Member])	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Customer Concentration Risk [Member] | Sales Revenue, Services, Net [Member]
Concentration Risk Number of Major Customers	4	3
Concentration Risk, Percentage	91.40%	85.20%

Note_7_Contractual_Obligations2

Note 7 - Contractual Obligations and Commitments - Contractual Obligations and Commitments (Details) (USD $)	Mar. 31, 2015
Total	$327,167	[1]
Less Than 1 Year	157,040	[1]
1 - 3 Years	$170,127	[1]
[1]	The Company has a New York facility with a lease term expiring April 30, 2017.

Note_9_Transactions_With_Relat1

Note 9 - Transactions With Related Persons (Details Textual) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Related Party Transaction [Line Items]
Related Party Transaction, Amounts of Transaction	$0	$0
Accounts Receivable, Related Parties	0	12,096
Security Deposits [Member] | Helios and Matheson Parent [Member]
Related Party Transaction [Line Items]
Due from Related Parties	2,000,000
Helios and Matheson Parent [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Amounts of Transaction	82,000
Accounts Receivable, Related Parties	182,626
Revenue from Related Parties	574,000	0
Related Party Transaction, Expenses from Transactions with Related Party	$58,000

Note_11_Dividend_Paid_Details_

Note 11 - Dividend Paid (Details Textual) (USD $)	0 Months Ended
	Feb. 03, 2014
Common Stock, Dividends, Per Share, Cash Paid	$0.08
Dividends, Common Stock, Cash	$186,435
Percentage of Dividend to Net Profits	50.00%