Helios and Matheson Analytics (HMNY) 10-Q 16 May 16 2016 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2016	May. 16, 2016
Entity Registrant Name	Helios & Matheson Analytics Inc.
Entity Central Index Key	1,040,792
Trading Symbol	hmny
Current Fiscal Year End Date	--12-31
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	Mar. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Current Assets:
Cash and cash equivalents	$ 1,096,428	$ 898,477
Accounts receivable- less allowance for doubtful accounts of $29,853 at March 31, 2016, and $42,203 at December 31, 2015	1,181,029	1,386,155
Unbilled receivables	98,464	295,473
Prepaid expenses and other current assets	162,939	208,642
Prepaid expenses and other current assets - Related Party - less allowance of $344,041 at March 31, 2016, and December 31, 2015	8,948	8,948
Total current assets	2,547,808	2,797,695
Property and equipment, net	$ 46,244	$ 47,885
Security Deposit-Related Party- less allowance of $2,000,000 at March 31, 2016 and December 31, 2015
Deposits and other assets	$ 155,356	$ 93,197
Total assets	2,749,408	2,938,777
Current Liabilities:
Accounts payable and accrued expenses	1,021,282	1,060,792
Total current liabilities	$ 1,021,282	$ 1,060,792
Commitments and Contingencies
Shareholders' equity:
Preferred stock, $.01 par value; 2,000,000 shares authorized; no shares issued and outstanding as of March 31, 2016, and December 31, 2015
Common stock, $.01 par value; 30,000,000 shares authorized; 2,330,438 issued and outstanding as of March 31, 2016 and December 31, 2015	$ 23,304	$ 23,304
Paid-in capital	37,855,740	37,855,740
Accumulated other comprehensive loss - foreign currency translation	(120,156)	(120,712)
Accumulated deficit	(36,030,762)	(35,880,347)
Total shareholders' equity	1,728,126	1,877,985
Total liabilities and shareholders' equity	$ 2,749,408	$ 2,938,777

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Allowance for doubtful accounts	$ 29,853	$ 42,203
Prepaid expenses and other current assets - related party, allowance	344,041	344,041
Security deposit, reserve	$ 2,000,000	$ 2,000,000
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, Shares Issued (in shares)	2,330,438	2,330,438
Common Stock, Shares Outstanding (in shares)	2,330,438	2,330,438

Condensed Consolidated Statemen

Condensed Consolidated Statement of Operations and Comprehensive Income/ (Loss) (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Revenues	$ 2,029,444	$ 2,493,512
Cost of revenues	1,454,948	1,872,261
Gross profit	574,496	621,251
Operating expenses:
Selling, general & administrative	719,602	562,913
Depreciation & amortization	3,314	3,065
	722,916	565,978
(Loss)/income from operations	(148,420)	55,273
Other income:
Interest income-net	1,006	2,817
	1,006	2,817
(Loss)/income before income taxes	(147,414)	58,090
Provision for income taxes	(3,000)	(3,000)
Net (loss)/income	(150,414)	55,090
Other comprehensive income - foreign currency adjustment	556	(3,930)
Comprehensive income/(loss)	$ (149,858)	$ 51,160
Net income/(loss) per share
Basic & diluted (in dollars per share)	$ (0.06)	$ 0.02
Dividend per share (in dollars per share)

Condensed Consolidated Stateme5

Condensed Consolidated Statement of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash flows from operating activities:
Net (loss)/income	$ (150,414)	$ 55,090
Adjustments to reconcile net (loss)/income to net cash (used in)/provided by operating activities:
Depreciation and amortization	3,314	3,065
Provision for doubtful accounts	12,350	(10,858)
Changes in operating assets and liabilities:
Accounts receivable	192,776	(477,064)
Unbilled receivables	197,009	36,159
Prepaid expenses and other current assets	45,703	(27,643)
Accounts payable and accrued expenses	(39,511)	$ 89,839
Deposits	(62,159)
Net cash (used in)/provided by operating activities	199,068	$ (331,412)
Cash flows from investing activities:
Purchase of property and equipment, net	(1,673)
Net cash used in investing activities	(1,673)
Effect of foreign currency exchange rate changes on cash and cash equivalents	556	$ (3,930)
Net increase/(decrease) in cash and cash equivalents	197,951	(335,342)
Cash and cash equivalents at beginning of period	898,477	1,225,518
Cash and cash equivalents at end of period	1,096,428	890,176
Supplemental disclosure of cash flow information:
Cash paid during the period for income taxes	$ 1,263	$ 971

Note 1 - General

Note 1 - General	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Basis of Accounting [Text Block]	1) GENERAL: These condensed consolidated 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, 2015 filed with the Securities and Exchange Commission (“SEC”) and the accompanying consolidated financial statements and related notes thereto. The accounting policies used in preparing these condensed consolidated financial statements are the same as those described in the Company's Form 10-K for the year ended December 31, 2015.

Note 2 - Controlled Company

Note 2 - Controlled Company	3 Months Ended
	Mar. 31, 2016
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 Stat

Note 3 - Interim Financial Statements	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Quarterly Financial Information [Text Block]	3) INTERIM FINANCIAL STATEMENTS: In the opinion of management, the accompanying unaudited condensed 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, 2016, the consolidated results of operations, and cash flows for the three months ended March 31, 2016 and 2015. The condensed consolidated balance sheet at December 31, 2015 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, 2015. For the three months ended March 31, 2016, the Company reported a net loss of approximately $150,000 and for the three months ended March 31, 2015, the Company reported net income of approximately $55,000. The Company continues to focus on revenue growth by seeking to expand 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 Compensati

Note 4 - Stock Based Compensation	3 Months Ended
	Mar. 31, 2016
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”) which the Company’s stockholders approved at the annual stockholders meeting on May 5, 2014. 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 Company’s Board of Directors is 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, no awards have been granted under the 2014 Plan.

Note 5 - Net Income (Loss) Per

Note 5 - Net Income (Loss) Per Share	3 Months Ended
	Mar. 31, 2016
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, 2016 and 2015: Three Months Ended March 31, 2016 2015 Numerator for basic net income/(loss) per share Net income/(loss) available to common stockholders $ (150,414 ) $ 55,090 Numerator for diluted net income/(loss) per share Net income/(loss) available to common stockholders & assumed conversion $ (150,414 ) $ 55,090 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 $ (0.06 ) $ 0.02

Note 6 - Concentration of Credi

Note 6 - Concentration of Credit Risk	3 Months Ended
	Mar. 31, 2016
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 94% of the revenue earned for the three months ended March 31, 2016. The revenues of the Company’s top three customers represented approximately 91.42% of revenues for the three months ended March 31, 2015. 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 Obligation

Note 7 - Contractual Obligations and Commitments	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Commitments Disclosure [Text Block]	7) COMMITMENTS: The Company’s commitments at March 31, 2016, are comprised of the following: Contractual Obligations Payments Due by Period Total Less Than 1 Year 1 - 3 Years 3 - 5 Years More Than 5 Years Operating Lease Obligations Rent (1) 186,148 166,990 19,157 - - Total $ 186,148 $ 166,990 $ 19,157 $ - $ - (1) The Company leases office space in New York and the Company’s Indian subsidiary leases office space in Bangalore. The lease term expires on April 30, 2017 at New York and on October 4, 2017 at Bangalore. The Company’s Indian subsidiary also had a lease at Capital Towers in Chennai, India for its offshore development center which expired on December 31, 2015 and has been extended on a month to month basis. The Company’s office lease is subject to escalations based on increases in real estate taxes and operating expenses, all of which are charged to rent expense. Rent expense for the three months ended March 31, 2016 and 2015 was approximately $90,900 and $59,200, respectively. As of March 31, 2016, the Company does not have any “Off Balance Sheet Arrangements”.

Note 8 - Provision for Income T

Note 8 - Provision for Income Taxes	3 Months Ended
	Mar. 31, 2016
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 Rela

Note 9 - Transactions with Related Party	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Related Party Transactions Disclosure [Text Block]	9) TRANSACTIONS WITH RELATED PARTIES The Company did not have any transactions with related parties during the three months ended March 31, 2016.

Note 10 - Subsequent Events

Note 10 - Subsequent Events	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Subsequent Events [Text Block]	10) SUBSEQUENT EVENTS Termination of Contract by a Client One of the Company’s clients has issued a notice to terminate the arrangement for use of the Offshore Development Center (ODC) provided by the Company as of May 15, 2016. This may adversely impact the Company’s revenue and margins going forward in the near term. However the Company’s subsidiary has successfully managed transition of the ODC together with all the employees working in the ODC to another company, thus ensuring that no additional expenses are incurred by the Company with respect to the ODC. For the three months ended March 31, 2016 and 2015, revenue related to this contract was approximately $613,000 and $ 578,000. For the full-year 2015 and 2014 the total revenue generated from this client was approximately $ 2.3 million and approximately $900,000 respectively. Management has plans to pursue other business opportunities to increase its revenue base but there can be no assurances that the Company will be able find other clients to make up for the annual revenue shortfall a result of the termination of this relationship. Forward-Looking Statements This report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 throughout and in particular in the discussion at Item 2 titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations”. These are statements regarding financial and operating performance results and other statements that are not historical facts. The words “expect,” “project,” “estimate,” “believe,” “anticipate,” “intend,” “plan,” “forecast,” and similar expressions are intended to identify forward-looking statements. Certain important risks, including those discussed in the risk factors set forth in Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 which have been incorporated into this report by reference, could cause results to differ materially from those anticipated by some of the forward-looking statements. Some, but not all, of these risks include, among other things: ● our capital requirements and whether or not we will be able to raise capital when we need it; ● our ability to retain our existing clients and expand our client engagements; ● changes in local, state or federal regulations that will adversely affect our business; ● our ability to sell our products and services; ● whether we will continue to receive the services of certain officers and directors; ● our ability to protect our intellectual property and operate our business without infringing upon the intellectual property rights of others; and ● other uncertainties, all of which are difficult to predict and many of which are beyond our control. We do not intend to update forward-looking statements. You should refer to and carefully review the information in future documents we file with the Securities and Exchange Commission.

Note 5 - Net Income (Loss) Pe16

Note 5 - Net Income (Loss) Per Share (Tables)	3 Months Ended
	Mar. 31, 2016
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Three Months Ended March 31, 2016 2015 Numerator for basic net income/(loss) per share Net income/(loss) available to common stockholders $ (150,414 ) $ 55,090 Numerator for diluted net income/(loss) per share Net income/(loss) available to common stockholders & assumed conversion $ (150,414 ) $ 55,090 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 $ (0.06 ) $ 0.02

Note 7 - Contractual Obligati17

Note 7 - Contractual Obligations and Commitments (Tables)	3 Months Ended
	Mar. 31, 2016
Notes Tables
Contractual Obligation, Fiscal Year Maturity Schedule [Table Text Block]	Contractual Obligations Payments Due by Period Total Less Than 1 Year 1 - 3 Years 3 - 5 Years More Than 5 Years Operating Lease Obligations Rent (1) 186,148 166,990 19,157 - - Total $ 186,148 $ 166,990 $ 19,157 $ - $ -

Note 3 - Interim Financial St18

Note 3 - Interim Financial Statements (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Approximation [Member]
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	$ 150,000	$ 55,000
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	$ (150,414)	$ 55,090

Note 4 - Stock Based Compensa19

Note 4 - Stock Based Compensation (Details Textual)	Mar. 31, 2016shares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number	0
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	400,000

Note 5 - Basic and Diluted Net

Note 5 - Basic and Diluted Net EPS (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Numerator for basic net income/(loss) per share
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	$ (150,414)	$ 55,090
Numerator for diluted net income/(loss) per share
Net income/(loss) available to common stockholders & assumed conversion	$ (150,414)	$ 55,090
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)	$ (0.06)	$ 0.02

Note 6 - Concentration of Cre21

Note 6 - Concentration of Credit Risk (Details Textual) - Customer Concentration Risk [Member] - Sales Revenue, Services, Net [Member]	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Concentration Risk, Percentage	94.00%	91.42%
Number of Major Customers	4	3

Note 7 - Contractual Obligati22

Note 7 - Contractual Obligations and Commitments (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Operating Leases, Rent Expense	$ 90,900	$ 59,200

Note 7 - Contractual Obligati23

Note 7 - Contractual Obligations (Details)	Mar. 31, 2016USD ($)	[1]
Payments Due by Period Total	$ 186,148
Payments Due by Period Less Than 1 Year	166,990
Payments Due by Period 1 - 3 Years	$ 19,157
Payments Due by Period 3 - 5 Years
Payments Due by Period More Than 5 Years
[1]	The Company leases office space in New York and Bangalore. The lease term expires on April 30, 2017 at New York and on October 4, 2017 at Bangalore.

Note 10 - Subsequent Events (De

Note 10 - Subsequent Events (Details Textual) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015	Dec. 31, 2014
Contracts Revenue	$ 613,000	$ 578,000	$ 2,300,000	$ 900,000