Helios and Matheson Analytics (HMNY) 10-Q 21 Nov 16 2016 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Nov. 17, 2016
Document Information [Line Items]
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)		4,484,495
Document Type	10-Q
Document Period End Date	Sep. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheet (Current Period Unaudited) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Current Assets:
Cash and cash equivalents	$ 1,205,068	$ 898,477
Accounts receivable- less allowance for doubtful accounts of $28,579 at September 30, 2016, and $42,203 at December 31, 2015	1,026,456	1,386,155
Unbilled receivables	66,859	295,473
Prepaid expenses and other current assets	298,897	208,642
Prepaid expenses and other current assets - Related Party - less allowance of $344,041 at September 30, 2016 and December 31, 2015	8,948	8,948
Total current assets	2,606,228	2,797,695
Receivable from Zone Technology	750,000
Property and equipment, net	37,539	47,885
Deposits and other assets	59,322	93,197
Total assets	3,453,089	2,938,777
Current Liabilities:
Accounts payable and accrued expenses	1,224,298	1,060,792
Derivative liability - warrants	74,444
Total current liabilities	1,298,742	1,060,792
Convertible Notes Payable, net of debt discount of $1,340,038 and $0, respectively	41,037
Derivative liability – conversion feature	1,417,504
Total liabilities	2,757,283	1,060,792
Shareholders' equity:
Preferred stock, $.01 par value; 2,000,000 shares authorized; no shares issued and outstanding as of September 30, 2016 and December 31, 2015
Common stock, $.01 par value; 30,000,000 shares authorized; 2,330,438 issued and outstanding as of September 30, 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	(104,566)	(120,712)
Accumulated deficit	(37,078,672)	(35,880,347)
Total shareholders' equity	695,806	1,877,985
Total liabilities and shareholders' equity	$ 3,453,089	$ 2,938,777

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheet (Current Period Unaudited) (Parentheticals) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Allowance for doubtful accounts	$ 28,579	$ 42,203
Prepaid expenses and other current assets - related party, allowance	344,041	344,041
Convertible Notes Payable, Debt Discount	$ 1,340,038	$ 0
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 Loss (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Revenues	$ 1,720,515	$ 2,459,393	$ 5,608,145	$ 7,366,023
Cost of revenues	1,130,091	1,713,287	3,922,469	5,390,801
Gross profit	590,424	746,106	1,685,676	1,975,222
Operating expenses:
Selling, general & administrative	741,530	661,466	2,073,888	1,762,647
Depreciation & amortization	2,251	2,971	9,479	8,796
	743,781	664,437	2,083,366	1,771,443
Income/(loss) from operations	(153,357)	81,669	(397,690)	203,779
Other income(expense):
Allowance against Security Deposit - related party		(2,000,000)		(2,000,000)
Allowance for prepaid expenses and other current assets - related party		(344,041)		(344,041)
Change in fair market value - derivative liabilities	401,703		401,703
Accretion of debt discount	(41,037)		(41,037)
Interest expense including financing fees	(244,925)		(244,925)
Derivative expense	(893,651)		(893,651)
Interest income	10,597	2,185	14,522	7,737
	(767,313)	(2,341,856)	(763,388)	(2,336,304)
Loss before income taxes	(920,670)	(2,260,187)	(1,161,078)	(2,132,525)
Provision for income taxes	(3,000)	(3,000)	(37,247)	(9,000)
Net loss	(923,670)	(2,263,187)	(1,198,325)	(2,141,525)
Other comprehensive (loss)/income - foreign currency adjustment	35,686	(35,711)	16,146	(45,899)
Comprehensive loss	$ (887,983)	$ (2,298,898)	$ (1,182,179)	$ (2,187,424)
Net loss per share
Basic & Diluted (in dollars per share)	$ (0.40)	$ (0.97)	$ (0.51)	$ (0.92)
Dividend Per share (in dollars per share)

Condensed Consolidated Stateme5

Condensed Consolidated Statement of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash flows from operating activities:
Net loss	$ (1,198,325)	$ (2,141,525)
Adjustments to reconcile net loss to net cash provided by/(used in) operating activities:
Depreciation and amortization	9,479	8,796
Accretion of debt discount	41,037
Derivative expense	893,651
Change in Fair market value - derivative liabilities	(401,703)
Allowance against security deposit - related party		2,000,000
Allowance for prepaid receivables and other current assets - related party		344,041
Provision for doubtful accounts	(13,627)	(18,461)
Changes in operating assets and liabilities:
Accounts receivable	373,326	(361,307)
Prepaid software licenses
Unbilled receivables	228,614	(52,627)
Prepaid expenses and other current assets	(90,255)	(117,843)
Prepaid expenses and other current assets - related party		(62,296)
Accounts payable and accrued expenses	81,419	(67,829)
Deposits	33,875	(35,209)
Net cash (used in)/provided by operating activities	39,578	(368,602)
Cash flows provided by/(used in) from investing activities:
Sales of Property and Equipment (net of purchases)	867	(3,129)
Loan to Zone	(750,000)
Net cash used in investing activities	(749,133)	(3,129)
Cash flows from financing activities:
Proceeds from note payable	1,000,000
Net cash provided by financing activities	1,000,000
Effect of foreign currency exchange rate changes on cash and cash equivalents	16,146	(45,899)
Net increase/(decrease) in cash and cash equivalents	306,591	(417,630)
Cash and cash equivalents at beginning of period	898,477	1,225,518
Cash and cash equivalents at end of period	1,205,068	807,888
Supplemental disclosure of cash flow information:
Cash paid during the period for interest
Cash paid during the period for income taxes - net of refunds	4,379	6,770
Non-cash investing and financing activities
Embedded derivative - conversion feature and warrants	1,893,651
Debt discount on convertible notes	$ 1,381,075

Note 1 - Organization

Note 1 - Organization	9 Months Ended
	Sep. 30, 2016
Notes to Financial Statements
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	1) ORGANIZATION: Helios and Matheson Analytics Inc. (“Helios and Matheson” or the “Company”) was incorporated in the state of New York in February of 1983 and became a public company in August of 1997. In October of 2009, Helios and Matheson changed its state of incorporation from New York to Delaware. The Company is headquartered in New York, New York and has offices in New York, Bangalore and Chennai, India. The Company provides a wide range of information technology (“IT”) consulting, custom application development and solutions and analytics services to Fortune 1000 companies and other large organizations. The Company supports all major computer technology platforms and supports client IT projects by using a broad range of third-party software applications. The Company now offers its clients an enhanced suite of services of predictive analytics with technology at its foundation enriched by data science. Recent Events: Change in Controlled Company Status Prior to November 9, 2016, the Company met the definition of a “Controlled Company” as defined by Rule 5615(c) of the NASDAQ 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. On November 9, 2016, the Company’s wholly-owned subsidiary, Zone Acquisition, Inc., merged with and into Zone Technologies, Inc. As a result of the merger, the Company no longer meets the definition of a Controlled Company. Merger with Zone Technologies, Inc. On November 9, 2016, the Company completed its previously disclosed merger with Zone Technologies, Inc. (“Zone”) pursuant to the Agreement and Plan of Merger, dated as of July 7, 2016, entered into by the Company, Zone Acquisition, Inc. and Zone, as amended by the Waiver and First Amendment to Agreement and Plan of Merger dated as of August 25, 2016 and the Acknowledgment of Satisfaction of Condition and Second Amendment to Agreement and Plan of Merger, dated as of September 21, 2016. On the Closing Date the Company issued 1,740,000 shares of the Company’s common stock as merger consideration, which represented an exchange ratio of 0.174 shares of the Company’s common stock for each share of Zone common stock outstanding, and Zone Acquisition, Inc., the Company’s wholly-owned subsidiary, was merged into Zone, with Zone surviving the merger as the Company’s wholly-owned subsidiary. Zone is the developer of the proprietary “RedZone Map”, a GPS-driven, real-time crime and navigation map application whose goal is to enhance personal safety worldwide by providing users with real time crime data and a platform for alerting other users to criminal and other safety related occurrences in a navigation map format. Zone’s mapping lets users be pro-active when traveling, allowing them to enter a number of different cautionary items such as traffic problems, police sightings, road hazards, accidents and road closures. It also allows users to report a crime and to video upload live incidents.

Note 2 - Basis of Presentation

Note 2 - Basis of Presentation	9 Months Ended
	Sep. 30, 2016
Notes to Financial Statements
Basis of Accounting [Text Block]	2) BASIS OF PRESENTATION: The accompanying unaudited Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10–Q and Rule 8–03 of Regulation S–X. Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States of America. However, in the opinion of the management of the Company, all adjustments necessary for a fair presentation of the financial position and operating results have been included in these statements. These Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and notes thereto included in the Company’s Annual Report on Form 10–K for the fiscal year ended December 31, 2015, as filed with the SEC on March 28, 2016. Operating results for the three and nine months ended September 30, 2016 are not necessarily indicative of the results that may be expected for any subsequent quarters or for the year ending December 31, 2016.

Note 3 - Liquidity and Manageme

Note 3 - Liquidity and Management Plans	9 Months Ended
	Sep. 30, 2016
Notes to Financial Statements
Substantial Doubt about Going Concern [Text Block]	3) LIQUIDITY AND MANAGEMENT PLANS: For the three month period ended September 30, 2016, the Company reported a net loss of approximately ($924,000) and for the nine month period ended September 30, 2016, the Company reported a net loss of approximately ($1,198,000); for the three month period ended September 30, 2015, the Company reported net loss of approximately ($2.26 million) and for the nine month period ended September 30, 2015, the Company reported net loss of approximately ($2.14 million). 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, which the Company believes will enhance its competitiveness. During the nine months ended September 30, 2016, management entered into a securities purchase agreement for the sale and purchase of notes. The Company received gross proceeds of $1,000,000 and a receivable of $3,000,000. Of the $1,000,000, management loaned $750,000 to Zone (See Note 5). On November 9, 2016, management consummated the merger with Zone (See Note 1 Recent Events). In management's opinion, cash flows from operations combined with existing cash on hand will provide adequate flexibility for funding the Company's working capital obligations for the next twelve months.

Note 4 - Summary of Significant

Note 4 - Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2016
Notes to Financial Statements
Significant Accounting Policies [Text Block]	4) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Use of estimates and assumptions and critical accounting estimates and assumptions The preparation of financial statements in conformity with US 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 dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Critical accounting estimates are estimates for which (a) the nature of the estimate is material due to the levels of subjectivity and judgment necessary to account for highly uncertain matters or the susceptibility of such matters to change and (b) the impact of the estimate on financial condition or operating performance is material. The Company’s critical accounting estimates and assumptions affecting the financial statements were: (1) Fair value of long–lived assets: (2) Valuation allowance for deferred tax assets: (3) Estimates and assumptions used in valuation of equity instruments: These significant accounting estimates or assumptions bear the risk of change due to the fact that there are uncertainties attached to these estimates or assumptions, and certain estimates or assumptions are difficult to measure or value. Management bases its estimates on historical experience and on various assumptions that are believed to be reasonable in relation to the financial statements taken as a whole under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Management regularly evaluates the key factors and assumptions used to develop the estimates utilizing currently available information, changes in facts and circumstances, historical experience and reasonable assumptions. After such evaluations, if deemed appropriate, those estimates are adjusted accordingly. Actual results could differ from those estimates. Principles of consolidation All intercompany transactions and balances have been eliminated. Derivative Instruments The Company evaluates its convertible notes and warrants to determine if those contracts or embedded components of those contracts qualify as derivatives to be separately accounted for in accordance with Paragraph 815-10-05-4 of the FASB Accounting Standards Codification and Paragraph 815-40-25 of the Codification. The result of this accounting treatment is that the fair value of the embedded derivative is marked-to-market each balance sheet date and recorded as a liability. In the event that the fair value is recorded as a liability, the change in fair value is recorded in the statements of operations as other income or expense. Upon conversion or exercise of a derivative instrument, the instrument is marked to fair value at the conversion date and then that fair value is reclassified to equity. In circumstances where the embedded conversion option in a convertible instrument is required to be bifurcated and there are also other embedded derivative instruments in the convertible instrument that are required to be bifurcated, the bifurcated derivative instruments are accounted for as a single, compound derivative instrument. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is re-assessed at the end of each reporting period. Equity instruments that are initially classified as equity that become subject to reclassification are reclassified to liability at the fair value of the instrument on the reclassification date. Derivative instrument liabilities are classified in the balance sheet as current or non-current to correspond with its host instrument. The Company marks to market the fair value of the remaining embedded derivative warrants at each balance sheet date and records the change in the fair value of the remaining embedded derivative warrants as other income or expense in the statements of operations. The Company utilizes the lattice binomial model that values the liability of the debt conversion feature derivative financial instruments and derivative warrants based on a probability of a down round event. The reason the Company selected the lattice binomial model is that in many cases there may be multiple embedded features or the features of the bifurcated derivatives may be so complex that a Black-Scholes valuation does not consider all of the terms of the instrument. Therefore, the fair value may not be appropriately captured by simple models. In other words, simple models such as Black-Scholes may not be appropriate in many situations given the complex features and terms of conversion option (e.g., combined embedded derivatives). The lattice binomial model is based on future projections of the various potential outcomes. The features that are analyzed and incorporated into the model include the exercise and full reset features. Based on these features, there are two primary events that can occur; the holder exercises the derivative instrument or the derivative instrument is held until it expires. The binomial model analyzes the underlying economic factors that influence which of these events would occur, when they are likely to occur, and the specific terms that would be in effect at the time (i.e. stock price, exercise price, volatility, etc.). Projections are then made on the underlying factors which lead to potential scenarios. Probabilities are assigned to each scenario based on management projections. A discounted weighted average cash flow over the various scenarios is completed to determine the value of the derivative instrument. Related Parties The Company follows subtopic 850-10 of the FASB Accounting Standards Codification for the identification of related parties and disclosure of related party transactions. The financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. The disclosures shall include: (a) the nature of the relationship(s) involved; (b) a description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; (c) the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and (d) amounts due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement. Net Loss per Common Share Net income (loss) per common share is computed pursuant to Section 260-10-45 of the Codification. Basic net loss per common share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period. Diluted net loss per common share is computed by dividing net loss by the weighted average number of shares of common stock and potentially outstanding shares of common stock during the period to reflect the potential dilution that could occur from common shares issuable through convertible debt, stock options or warrants. The following table shows the outstanding dilutive common shares excluded from the diluted net loss per share calculation as they were anti-dilutive: September 30, 2016 2015 Warrants 9,908 - Conversion features on convertible notes 161,124 - Total potentially dilutive shares 171,032 - Recent accounting pronouncements In August 2014, the Financial Accounting Standards Board issued Accounting Standards Update 2014-15, Presentation of Financial Statements-Going Concern. The Update provides U.S. GAAP guidance on management’s responsibility in evaluating whether there is substantial doubt about a company’s ability to continue as a going concern and about related footnote disclosures. For each reporting period, management will be required to evaluate whether there are conditions or events that raise substantial doubt about a company’s ability to continue as a going concern within one year from the date the financial statements are issued. This Accounting Standards Update is the final version of Proposed Accounting Standards Update 2013-300-Presentation of Financial Statements (Topic 205): Disclosure of Uncertainties about an Entity’s Going Concern Presumption, which has been deleted. The amendments in this update are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. The Company is currently evaluating the effects of ASU 2014-15 on the consolidated financial statements. In April 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016–09, “Compensation – Stock Compensation” (topic 718). The FASB issued this update to improve the accounting for employee share–based payments and affect all organizations that issue share–based payment awards to their employees. Several aspects of the accounting for share–based payment award transactions are simplified, including: (a) income tax consequences; (b) classification of awards as either equity or liabilities; and (c) classification on the statement of cash flows. The updated guidance is effective for annual periods beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption of the update is permitted. The Company is currently evaluating the impact of the new standard. During January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments — Overall: Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). The standard addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. This ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. Early adoption is not permitted with the exception of certain provisions related to the presentation of other comprehensive income. The adoption of ASU 2016-01 is not expected to have a material impact on our financial position, results of operations or cash flows. In February 2016, FASB issued ASU No. 2016–02 “Leases” (topic 842), which creates new accounting and reporting guidelines for leasing arrangements. The new guidance requires organizations that lease assets to recognize assets and liabilities on the balance sheet related to the rights and obligations created by those leases, regardless of whether they are classified as finance or operating leases. Consistent with current guidance, the recognition, measurement, and presentation of expenses and cash flows arising from a lease primarily will depend on its classification as a finance or operating lease. The guidance also requires new disclosures to help financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. The new standard is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period, with early application permitted. The new standard is to be applied using a modified retrospective approach. The Company is currently evaluating the impact of the new pronouncement on its financial statements. In March 2016, the FASB issued ASU No. 2016-06, “Contingent Put and Call Option in Debt Instruments” (“ASU 2016-06”). ASU 2016-06 is intended to simplify the analysis of embedded derivatives for debt instruments that contain contingent put or call options. The amendments in ASU 2016-06 clarify that an entity is required to assess the embedded call or put options solely in accordance with the four-step decision sequence. Consequently, when a call (put) option is contingently exercisable, an entity does not have to initially assess whether the event that triggers the ability to exercise a call (put) option is related to interest rates or credit risks. The amendments in ASU 2016-06 take effect for public business entities for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The Company does not expect the adoption of ASU 2016–01 to have a significant impact on its financial statements. In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”). ASU 2016-15 will make eight targeted changes to how cash receipts and cash payments are presented and classified in the statement of cash flows. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017. The new standard will require adoption on a retrospective basis unless it is impracticable to apply, in which case it would be required to apply the amendments prospectively as of the earliest date practicable. The Company is currently in the process of evaluating the impact of ASU 2016-15 on its consolidated financial statements.

Note 5 - Securities Purchase Ag

Note 5 - Securities Purchase Agreement	9 Months Ended
	Sep. 30, 2016
Notes to Financial Statements
Debt Disclosure [Text Block]	5) SECURITIES PURCHASE AGREEMENT: Terms: On September 7, 2016 (the “Closing Date”), the Company sold and issued Senior Secured Convertible Notes (“Notes”) to an institutional investor (the “Investor”) in the aggregate principal amount of $4,301,075 for consideration consisting of (i) a cash payment by the Investor in the amount of $1,000,000 together with a secured promissory note payable by the Investor to the Company (the “Investor Note”) in the principal amount of $3,000,000. The Note included an original issue discount of $301,075. Financing fees associated with this transaction amounted to $244,925. The Notes The aggregate principal amount of the Notes is $4,301,075. Unless earlier converted or redeemed, the Notes mature 15 months from the date they were issued. The Notes bear interest at a rate of 6% per annum, subject to an increase to 12% during the first 30 days following the occurrence and continuance of an Event of Default and to 18% thereafter. Interest on the Notes will be payable in arrears commencing on December 1, 2016 and quarterly thereafter, beginning on January 1, 2017 and, so long as certain conditions, as defined in the Notes, have been satisfied, may be paid in shares of common stock at the Company’s option. The Company may also elect to pay interest in whole or in part in cash. Interest on the Notes is computed on the basis of a 360-day. The Investor may, at any time, elect to convert the Convertible Notes into shares of the Company’s common stock at a conversion price, subject to certain beneficial ownership limitations. The Conversion Price is $8.075. The Company may, with the consent of the Investor, reduce the then-current Conversion Price to any amount equal to or greater than the Floor Price ($4.00) for any period of time deemed appropriate by the Company’s Board of Directors. On October 24, 2016, pursuant to Section 7(e) of the Convertible Notes, the Company notified the Investor that the Company desired to permanently lower the Conversion Price from $8.075 to the lower of (a) $5.75 (as adjusted for stock splits, stock dividends, stock combinations, recapitalizations and similar events) and (b) the Alternate Conversion Price in effect, from time to time, effective upon the Investor’s voluntary prepayment to the Company of $1,000,000 under the Investor Note. The Investor also has the right to convert the Convertible Notes into shares of the Company’s common stock at the Alternate Conversion Price, subject to certain beneficial ownership limitations. The Alternate Conversion Price is defined as the lowest of (i) the applicable Conversion Price as in effect on the applicable conversion date of the applicable Alternate Conversion, (ii) the greater of (I) the Floor Price ($4.00) and (II) 87% of the quotient of (x) the sum of the volume weighted average price of the Company’s common stock for each of the five consecutive trading days ending and including the trading day immediately preceding the delivery or deemed delivery of the applicable conversion notice, divided by (y) five. The Company accounted for the alternative conversion provisions as a derivative liability and recognized the fair value at issuance. At each balance sheet date, the feature is re-valued and the corresponding change in fair value is recorded in other income and expense. Under certain conditions, the Company has the right to redeem all, but not less than all, of the amounts remaining unpaid under the Notes. The portion of the Notes subject to redemption can be redeemed by the Company in cash at a price equal to 110% of the amount being redeemed. In the event of a change of control, the Investor may require the Company to redeem the Notes in cash. The Notes contain standard and customary events of default including but not limited to: (i) failure to register the Company’s common stock within certain time periods or failure to keep the registration statement effective as required by the Registration Rights Agreement; (ii) failure to maintain the listing of the Company’s common stock; (iii) failure to make payments when due under the Note; (iv) breaches of covenants and (iv) bankruptcy or insolvency. Following an event of default, the Investor may require the Company to redeem all or any portion of the Notes. The redemption amount may be paid in cash or with shares of the Company’s common stock, at the election of the Investor. The Event of Default Redemption Price will be computed as a price equal to the greater of (i) 125% of the principal, interest and late charges to be redeemed and (ii) the product of (X) the principal, interest and late charges to be redeemed divided by the Conversion Price multiplied by (Y) the product of (1) 125% multiplied by (2) the greatest Closing Sale Price of the Company’s common stock on any Trading Day during the period commencing on the date preceding such Event of Default and ending on the date the Company makes the entire payment required to be made under the Note. In addition, following an Event of Default, the holders of the Notes will have the right to convert the Notes at the “Alternate Conversion Event of Default Price” which means, with respect to any Alternate Conversion, that price which shall be the lowest of (i) the applicable Conversion Price as in effect on the applicable Conversion Date of the applicable Alternate Conversion, and (ii) 75% of the lowest volume weighted average price of the common stock for each of the 30 consecutive Trading Days ending and including the Trading Day of delivery or deemed delivery of the applicable Conversion Notice. The Notes prohibit the Company from entering into specified transactions involving a change of control unless the successor entity, which must be a publicly traded corporation whose common stock is quoted on or listed for trading on an Eligible Market, assumes in writing all of the Company’s obligations under the Note. The Company and its wholly-owned subsidiary, HMNY Zone Loan LLC each entered into a Security and Pledge Agreement in favor of the Investor as Collateral Agent. Pursuant to such Security and Pledge Agreements, the Notes are secured by a perfected first priority security interest in the Company’s equity ownership interest in HMNY Zone Loan LLC and the Investor Note, and all of the assets of HMNY Zone Loan LLC, subject to Permitted Liens. HMNY Zone Loan LLC also provided a Guaranty to the Investor as Collateral Agent whereby HMNY Zone Loan LLC guarantees the punctual payment of all obligations that accrue after the commencement of any insolvency proceeding of the Company, whether or not the payment of such obligations are enforceable or allowable in the insolvency proceeding, and all fees, interest, premiums, penalties, causes of actions, costs, commissions, expense reimbursements, indemnifications and all other amounts due or to become due under any of the Notes financing documents, and agrees to pay any and all costs and expenses (including counsel fees and expenses) incurred by the Collateral Agent in enforcing any rights under the Guaranty or any other Notes financing document. Under the terms of a Registration Rights Agreement with the Investor, the Company is required to register for resale the shares of common stock that are issuable upon conversion of the Notes, additional shares that could be used as payment of monthly interest plus an additional number of shares so that the total number of shares of common stock registered equals 125% of the sum of the maximum number of shares issuable upon conversion of the Notes. The Registration Rights Agreement requires the Company to file the registration statement within 30 days after the Closing Date and to have the registration statement declared effective 90 days after the Closing Date (or 120 days after the Closing Date if the registration statement is subject to review by the Securities and Exchange Commission). The Registration Rights Agreement provides for the payment of liquidated damages of one and one-half percent (1.5%) of the product of (x) the number of shares of common stock required by the Registration Rights Agreement to be included in the registration statement and (y) the Closing Sale Price as of the Trading Day immediately prior to the date a Registration Delay Payment, defined as the failure to file the registration statement in the time required, the failure to have the registration statement declared effective in the time required, the failure to maintain the effectiveness of the registration statement or the failure to keep current public information in the marketplace. The Company is required to keep the registration statement effective (and the prospectus contained therein available for use) pursuant to Rule 415 for resales on a delayed or continuous basis at then-prevailing market prices at all times until the earlier of (i) the date as of which the holders of the Notes may sell all of the common stock issuable pursuant thereto without restriction pursuant to Rule 144 or (ii) the date on which all of the common stock covered by the registration statement shall have been sold. Investor Note The Investor Note is payable in full on December 7, 2017. The Investor’s obligation to pay the Company the Purchase Price Balance pursuant to the Investor Note is secured by $3 million, in the aggregate, in cash or cash equivalents. The Investor may, at its option at any time after September 28, 2016, voluntarily prepay the Investor Note, in whole or in part. The Investor Note is also subject to mandatory prepayment, in whole or in part, upon the occurrence of one or more of the following mandatory prepayment events: (1) Mandatory Prepayment upon Conversion of Note – At any time the Investor has converted $1,301,075 or more in principal amount of the Note, the Investor will be required to prepay the Investor Note, on a dollar-for-dollar basis, for each subsequent conversion of the Note. (2) Mandatory Prepayment upon Mandatory Prepayment Notices – The Company may require the Investor to prepay the Investor Note by delivering a mandatory prepayment notice to the Investor, subject to (i) the satisfaction of certain equity conditions, and (ii) the Investor’s receipt of a valid written notice by the Company electing to effect a mandatory conversion of Restricted Principal (defined as $3 million of the principal amount of the Notes), not in excess of the Maximum Mandatory Share Amount or the Maximum Mandatory Conversion Amount. Placement Agent Note and Warrants The Company also issued a Senior Secured Convertible Note (the “Placement Agent Note”) to the placement agent, in lieu of the placement agent’s cash fee. The aggregate principal amount of the Placement Agent Note is $80,000. Unless earlier converted or redeemed, the Note matures 15 months from the date it was issued. The Placement Agent Note bears interest at a rate of 6% per annum, subject to an increase to 12% during the first 30 days following the occurrence and continuance of an Event of Default and to 18% thereafter. Interest on the Placement Agent Note will be payable in arrears commencing on December 1, 2016 and quarterly thereafter, beginning on January 1, 2017 and, so long as certain conditions have been satisfied, may be paid in shares of common stock at the Company’s option. The Company may also elect to pay interest in whole or in part in cash. Interest on the Note is computed on the basis of a 360-day year. The remaining terms are similar to those of the Notes described above. In addition to issuing the Placement Agent Note, the Company issued a 5-year warrant (the “Placement Agent Warrant”) as partial payment for the placement agent’s services. The Placement Agent Warrant allows the purchase of 9,908 shares of the Company’s common stock at an exercise price of $9.36 per share. If, after the first anniversary of the Closing Date, there is no effective registration statement registering, or no current prospectus available for, the resale of the Warrant Shares by the placement agent, then the Placement Agent Warrant may also be exercised, in whole or in part, by means of a “cashless exercise”. If the Company issues or sells shares of its common stock, rights to purchase shares of its common stock, or securities convertible into shares of its common stock for a price per share that is less than the exercise price then in effect, the exercise price of the Warrant will be decreased to equal such lesser price. Upon each such adjustment, the number of the shares of the Company’s common stock issuable upon exercise of the Warrant will increase proportionately. The Company accounted for such provision as a derivative liability and recognized the fair value at issuance. At each balance sheet date, the feature is re-valued and the corresponding change in fair value is recorded in other income and expense. Zone Note On the Closing Date, the Company used $750,000 of the proceeds from the sale of the Notes to provide, through its newly formed wholly-owned subsidiary, HMNY Zone Loan LLC, a senior secured loan to Zone, secured by all of Zone’s assets. The remainder of the proceeds was used for general corporate purposes. The Zone note is due on the earlier of September 7, 2017 or upon the date the Notes become due. The Zone note bears interest at a rate of 6%. On October 25, 2016, the Company entered into an Amendment to Promissory Note and Security and Pledge Agreement whereby the Company increased its senior secured loan to Zone by $383,305, thereby increasing the principal amount of the Zone note to a total of $1,133,305. The amended note continues to be secured by a first priority lien on all of Zone’s assets pursuant to the Security and Pledge Agreement, dated as of September 7, 2016, between Zone and HMNY Zone Loan LLC. Activity: Following is an analysis of the activity in the Notes and the Investor Notes during the nine months ended September 30, 2016: Amount Balance at December 31, 2015 $ - Issuance of Notes during the period 4,381,075 Right of setoff of the Investor Notes (3,000,000 ) Debt discount (1,381,075 ) Accretion of debt discount 41,037 Balance at September 30, 2016 $ 41,037 Under ASC 210-20-45-1, management offset the Notes by the Investor Notes yet to be funded. The funded and unfunded portion of the Investor Note consists of the following at September 30, 2016: September 30, 2016 Investor notes - Available funding (subject to limitations) $ 3,000,000 Unfunded amount of investor notes (3,000,000 ) Investor notes - funded (prior to any repayments) $ - During the period October 1, 2016 through November 18, 2016, the Company received an additional $2,000,000 in proceeds from the Investor Notes.

Note 6 - Fair Value of Financia

Note 6 - Fair Value of Financial Assets and Liabilities Measured on a Recurring Basis	9 Months Ended
	Sep. 30, 2016
Notes to Financial Statements
Fair Value Disclosures [Text Block]	6) FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES MEASURED ON A RECURRING BASIS: Level 3 Financial Liabilities - Derivative conversion features and warrant liabilities Financial assets and liabilities measured at fair value on a recurring basis are summarized below and disclosed on the consolidated balance sheet as of September 30, 2016: Carrying Fair Value Measurement Using Value Level 1 Level 2 Level 3 Total Derivative liability - warrants $ 74,444 $ - $ - $ 74,444 $ 74,444 Derivative liability – conversion feature $ 1,417,504 $ - $ - $ 1,417,504 $ 1,417,504 Financial assets and liabilities measured at fair value on a recurring basis are summarized below and disclosed on the consolidated balance sheet as of December 31, 2015: Carrying Fair Value Measurement Using Value Level 1 Level 2 Level 3 Total Derivative conversion features and warrant liabilities $ - $ - $ - $ - $ - The table below provides a summary of the changes in fair value, including net transfers in and/or out, of all financial assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the period ended September 30, 2016: Fair Value Measurement Using Level 3 Inputs Total Balance, January 1, 2016 $ - Purchases, issuances and settlements 1,893,651 Change in fair value of derivative liabilities (401,703 ) Balance, September 30, 2016 $ 1,491,948 The fair value of the derivative conversion features and warrant liabilities as of September 30, 2016 were calculated using a lattice binomial option model valued with the following weighted average assumptions: Dividend Yield 0% Expected Volatility 154.0 - 190.1% Risk free interest rate 1.12% Contractual term (in years) 1.15 - 5.0 Exercise price $8.075 - 9.36 Changes in the unobservable input values would likely cause material changes in the fair value of the Company’s Level 3 financial instruments. The significant unobservable input (probability of a down round event) used in the fair value measurement is the estimation of the likelihood of the occurrence of a change in the contractual terms of the financial instruments. A significant increase (decrease) in this likelihood would result in a higher (lower) fair value measurement.

Note 7 - Stock Based Compensati

Note 7 - Stock Based Compensation	9 Months Ended
	Sep. 30, 2016
Notes to Financial Statements
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	7) 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 shareholders approved at the annual shareholders meeting held 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 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 no awards have been granted under the 2014 Plan. Effective November 7, 2016 the plan was amended to include a total of 1,125,000 shares of common stock to be issued under the Employee Stock Option Plan

Note 8 - Concentration of Credi

Note 8 - Concentration of Credit Risk	9 Months Ended
	Sep. 30, 2016
Notes to Financial Statements
Concentration Risk Disclosure [Text Block]	8) CONCENTRATION OF CREDIT RISK: The revenues of the Company’s top four customers represented approximately 90% of the revenues for the nine month period ended September 30, 2016. The revenues of the Company’s top four customers represented approximately 90.4% of revenues for the same period in 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. One of the Company’s clients, while continuing the engagement under a Master Services Agreement, issued a notice to terminate, as of May 15, 2016, the arrangement for use of the Offshore Development Center (ODC) provided to the client by the Company. However the ODC, together with all of the employees, is now being utilized by another company (although not one of the Company’s clients), thus ensuring that no additional expenses are incurred by the Company with respect to the ODC. For the nine months ended September 30, 2016 and 2015, revenue generated from use of the ODC was approximately $1.80 million and $2.54 million, respectively. For the full-year 2016 and 2015 the total revenue generated from use of the ODC was approximately $1.80 million and approximately $3.57 million, respectively. There can be no assurance that the Company will be able find other clients to make up for the annual revenue shortfall that resulted from the termination of this relationship.

Note 9 - Contractual Obligation

Note 9 - Contractual Obligations and Commitments	9 Months Ended
	Sep. 30, 2016
Notes to Financial Statements
Commitments Disclosure [Text Block]	9) CONTRACTUAL OBLIGATIONS AND COMMITMENTS: The Company’s commitments at September 30, 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) 91,607 91,607 - - - Total $ 91,607 $ 91,607 $ - $ - $ - (1) The Company has a New York facility with a lease term expiring April 30, 2017. As of September 30, 2016, the Company does not have any “Off Balance Sheet Arrangements”.

Note 10 - Transactions With Rel

Note 10 - Transactions With Related Party	9 Months Ended
	Sep. 30, 2016
Notes to Financial Statements
Related Party Transactions Disclosure [Text Block]	10) TRANSACTIONS WITH RELATED PARTIES Maruthi Consulting Inc. (A subsidiary of Helios and Matheson Parent ) The Company has provided consulting services to Maruthi Consulting Inc. The amount receivable for the consulting services as of September 30, 2016 was approximately $61,000 and as of December 31, 2015 was approximately $61,000. The Company has also procured services from Maruthi Consulting Inc. The amount payable as of September 30, 2016 was approximately $2,000 and as of December 31, 2015 was approximately $2,000. The Company did not have any transactions with Maruthi Consulting Inc. during the nine months ended September 30, 2016. Helios and Matheson IT (Bangalore) Ltd. (A subsidiary of Helios and Matheson Information Technology Ltd.) During the quarter ending on September 30, 2016, the Company’s Indian subsidiary obtained professional services from Helios and Matheson IT (Bangalore) Ltd. which is a subsidiary of Helios and Matheson Information Technology Ltd., formerly the Company’s parent. An amount of $178,820 has been included in the Company’s operating expenses during the quarter ending September 30, 2016.

Note 11 - Warrants

Note 11 - Warrants	9 Months Ended
	Sep. 30, 2016
Notes to Financial Statements
Warrants, Disclosure [Text Block]	11) WARRANTS: On September 7, 2016, in conjunction with the issuance of the Notes, the Company issued warrants to purchase 9,908 shares of the Company’s common stock to Palladium Capital Advisors LLC. The warrants are exercisable for five years at an exercise price of $9.36 per share. The following is a summary of the Company’s stock warrant activity during the nine months ended September 30, 2016: Number of Warrants Weighted Average Exercise Price Weighted Average Remaining Contractual Life Outstanding - January 1, 2016 - $ - - Granted 9,908 9.36 5 Exercised - - - Forfeited/Cancelled - - - Outstanding – September 30, 2016 9,908 $ 9.36 4.98 Exercisable – September 30, 2016 9,908 $ 9.36 4.98 At September 30, 2016, the total intrinsic value of warrants outstanding and exercisable was $0.

Note 12 - Subsequent Events

Note 12 - Subsequent Events	9 Months Ended
	Sep. 30, 2016
Notes to Financial Statements
Subsequent Events [Text Block]	12) SUBSEQUENT EVENTS A greement and Plan of Merger with Zone Technologies, Inc. On July 7, 2016 , the Company, Zone Acquisition, Inc., a Nevada corporation and wholly owned subsidiary of the Company (“Sub”), and Zone Technologies, Inc., a privately held Nevada corporation (“Zone”), entered into an Agreement and Plan of Merger (the “Merger Agreement”), as amended, pursuant to which Sub was to merge with and into Zone, with Zone surviving as the Company’s wholly owned subsidiary (the “Merger”), subject to the satisfaction or waiver of certain conditions set forth in the Merger Agreement. On November 9, 2016 (the “Closing Date”), the Merger was consummated. On the Closing Date the Company issued 1,740,000 shares of the Company’s common stock as merger consideration, which represented an exchange ratio of 0.174 shares of the Company’s common stock for each share of Zone common stock outstanding. Nasdaq Hearing Panel’s Decision on Continued Listing. On July 25, 2016, the Company received written notification that the Nasdaq Hearings Panel (the “Panel”) granted the Company’s request for continued listing on The Nasdaq Stock Market, subject to the fulfillment of certain conditions, with the final condition being that the Company shall have publicly announced and informed the Panel, on or before November 15, 2016, that the merger with Zone and a capital raising transaction were complete and, as a result, the Company has stockholders’ equity above $2.5 million. As a result of consummating the Merger, the Company believes it currently has stockholders’ equity in excess of $2.5 million and is therefore compliant with Nasdaq Rule 5550(b). The Company is awaiting Nasdaq’s formal confirmation that it satisfies all requirements for continued listing on The Nasdaq Capital Market. Conversion of Notes On November 15, 2016 (the “Execution Date”), the Company and the Investor agreed to reduce the Conversion Price, as defined in the Convertible Notes, of $1 million in aggregate principal amount of the Convertible Notes to (A) with respect to $100,000 in aggregate principal amount of the Convertible Note converted on the Execution Date and any conversions occurring on November 16, 2016, $4.51 (as adjusted for stock splits, stock dividends, stock combinations, recapitalizations and similar events) and (B) thereafter, with respect to the remaining Convertible Note then outstanding, the Alternate Conversion Price, as defined in the Convertible Notes (except with “80%” replacing “87%” in such definition in the Convertible Notes). To date, the Investor has converted a total of $3,401,075 in principal and $32,412.20 in accrued interest into 658,929 shares of the Company’s common stock. Subsequent to November 15, 2016, The Investor paid the Company $2 million towards the Purchase Price Balance,

Significant Accounting Policies

Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Use of Estimates, Policy [Policy Text Block]	Use of estimates and assumptions and critical accounting estimates and assumptions The preparation of financial statements in conformity with US 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 dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Critical accounting estimates are estimates for which (a) the nature of the estimate is material due to the levels of subjectivity and judgment necessary to account for highly uncertain matters or the susceptibility of such matters to change and (b) the impact of the estimate on financial condition or operating performance is material. The Company’s critical accounting estimates and assumptions affecting the financial statements were: (1) Fair value of long–lived assets: (2) Valuation allowance for deferred tax assets: (3) Estimates and assumptions used in valuation of equity instruments: These significant accounting estimates or assumptions bear the risk of change due to the fact that there are uncertainties attached to these estimates or assumptions, and certain estimates or assumptions are difficult to measure or value. Management bases its estimates on historical experience and on various assumptions that are believed to be reasonable in relation to the financial statements taken as a whole under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Management regularly evaluates the key factors and assumptions used to develop the estimates utilizing currently available information, changes in facts and circumstances, historical experience and reasonable assumptions. After such evaluations, if deemed appropriate, those estimates are adjusted accordingly. Actual results could differ from those estimates.
Consolidation, Policy [Policy Text Block]	Principles of consolidation All intercompany transactions and balances have been eliminated.
Derivatives, Policy [Policy Text Block]	Derivative Instruments The Company evaluates its convertible notes and warrants to determine if those contracts or embedded components of those contracts qualify as derivatives to be separately accounted for in accordance with Paragraph 815-10-05-4 of the FASB Accounting Standards Codification and Paragraph 815-40-25 of the Codification. The result of this accounting treatment is that the fair value of the embedded derivative is marked-to-market each balance sheet date and recorded as a liability. In the event that the fair value is recorded as a liability, the change in fair value is recorded in the statements of operations as other income or expense. Upon conversion or exercise of a derivative instrument, the instrument is marked to fair value at the conversion date and then that fair value is reclassified to equity. In circumstances where the embedded conversion option in a convertible instrument is required to be bifurcated and there are also other embedded derivative instruments in the convertible instrument that are required to be bifurcated, the bifurcated derivative instruments are accounted for as a single, compound derivative instrument. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is re-assessed at the end of each reporting period. Equity instruments that are initially classified as equity that become subject to reclassification are reclassified to liability at the fair value of the instrument on the reclassification date. Derivative instrument liabilities are classified in the balance sheet as current or non-current to correspond with its host instrument. The Company marks to market the fair value of the remaining embedded derivative warrants at each balance sheet date and records the change in the fair value of the remaining embedded derivative warrants as other income or expense in the statements of operations. The Company utilizes the lattice binomial model that values the liability of the debt conversion feature derivative financial instruments and derivative warrants based on a probability of a down round event. The reason the Company selected the lattice binomial model is that in many cases there may be multiple embedded features or the features of the bifurcated derivatives may be so complex that a Black-Scholes valuation does not consider all of the terms of the instrument. Therefore, the fair value may not be appropriately captured by simple models. In other words, simple models such as Black-Scholes may not be appropriate in many situations given the complex features and terms of conversion option (e.g., combined embedded derivatives). The lattice binomial model is based on future projections of the various potential outcomes. The features that are analyzed and incorporated into the model include the exercise and full reset features. Based on these features, there are two primary events that can occur; the holder exercises the derivative instrument or the derivative instrument is held until it expires. The binomial model analyzes the underlying economic factors that influence which of these events would occur, when they are likely to occur, and the specific terms that would be in effect at the time (i.e. stock price, exercise price, volatility, etc.). Projections are then made on the underlying factors which lead to potential scenarios. Probabilities are assigned to each scenario based on management projections. A discounted weighted average cash flow over the various scenarios is completed to determine the value of the derivative instrument.
Related Parties Policy [Policy Text Block]	Related Parties The Company follows subtopic 850-10 of the FASB Accounting Standards Codification for the identification of related parties and disclosure of related party transactions. The financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. The disclosures shall include: (a) the nature of the relationship(s) involved; (b) a description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; (c) the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and (d) amounts due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement.
Earnings Per Share, Policy [Policy Text Block]	Net Loss per Common Share Net income (loss) per common share is computed pursuant to Section 260-10-45 of the Codification. Basic net loss per common share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period. Diluted net loss per common share is computed by dividing net loss by the weighted average number of shares of common stock and potentially outstanding shares of common stock during the period to reflect the potential dilution that could occur from common shares issuable through convertible debt, stock options or warrants. The following table shows the outstanding dilutive common shares excluded from the diluted net loss per share calculation as they were anti-dilutive: September 30, 2016 2015 Warrants 9,908 - Conversion features on convertible notes 161,124 - Total potentially dilutive shares 171,032 -
New Accounting Pronouncements, Policy [Policy Text Block]	Recent accounting pronouncements In August 2014, the Financial Accounting Standards Board issued Accounting Standards Update 2014-15, Presentation of Financial Statements-Going Concern. The Update provides U.S. GAAP guidance on management’s responsibility in evaluating whether there is substantial doubt about a company’s ability to continue as a going concern and about related footnote disclosures. For each reporting period, management will be required to evaluate whether there are conditions or events that raise substantial doubt about a company’s ability to continue as a going concern within one year from the date the financial statements are issued. This Accounting Standards Update is the final version of Proposed Accounting Standards Update 2013-300-Presentation of Financial Statements (Topic 205): Disclosure of Uncertainties about an Entity’s Going Concern Presumption, which has been deleted. The amendments in this update are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. The Company is currently evaluating the effects of ASU 2014-15 on the consolidated financial statements. In April 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016–09, “Compensation – Stock Compensation” (topic 718). The FASB issued this update to improve the accounting for employee share–based payments and affect all organizations that issue share–based payment awards to their employees. Several aspects of the accounting for share–based payment award transactions are simplified, including: (a) income tax consequences; (b) classification of awards as either equity or liabilities; and (c) classification on the statement of cash flows. The updated guidance is effective for annual periods beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption of the update is permitted. The Company is currently evaluating the impact of the new standard. During January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments — Overall: Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). The standard addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. This ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. Early adoption is not permitted with the exception of certain provisions related to the presentation of other comprehensive income. The adoption of ASU 2016-01 is not expected to have a material impact on our financial position, results of operations or cash flows. In February 2016, FASB issued ASU No. 2016–02 “Leases” (topic 842), which creates new accounting and reporting guidelines for leasing arrangements. The new guidance requires organizations that lease assets to recognize assets and liabilities on the balance sheet related to the rights and obligations created by those leases, regardless of whether they are classified as finance or operating leases. Consistent with current guidance, the recognition, measurement, and presentation of expenses and cash flows arising from a lease primarily will depend on its classification as a finance or operating lease. The guidance also requires new disclosures to help financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. The new standard is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period, with early application permitted. The new standard is to be applied using a modified retrospective approach. The Company is currently evaluating the impact of the new pronouncement on its financial statements. In March 2016, the FASB issued ASU No. 2016-06, “Contingent Put and Call Option in Debt Instruments” (“ASU 2016-06”). ASU 2016-06 is intended to simplify the analysis of embedded derivatives for debt instruments that contain contingent put or call options. The amendments in ASU 2016-06 clarify that an entity is required to assess the embedded call or put options solely in accordance with the four-step decision sequence. Consequently, when a call (put) option is contingently exercisable, an entity does not have to initially assess whether the event that triggers the ability to exercise a call (put) option is related to interest rates or credit risks. The amendments in ASU 2016-06 take effect for public business entities for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The Company does not expect the adoption of ASU 2016–01 to have a significant impact on its financial statements. In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”). ASU 2016-15 will make eight targeted changes to how cash receipts and cash payments are presented and classified in the statement of cash flows. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017. The new standard will require adoption on a retrospective basis unless it is impracticable to apply, in which case it would be required to apply the amendments prospectively as of the earliest date practicable. The Company is currently in the process of evaluating the impact of ASU 2016-15 on its consolidated financial statements.

Note 4 - Summary of Significa19

Note 4 - Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2016
Notes Tables
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]	September 30, 2016 2015 Warrants 9,908 - Conversion features on convertible notes 161,124 - Total potentially dilutive shares 171,032 -

Note 5 - Securities Purchase 20

Note 5 - Securities Purchase Agreement (Tables)	9 Months Ended
	Sep. 30, 2016
Notes Tables
Convertible Debt Activity [Table Text Block]	Amount Balance at December 31, 2015 $ - Issuance of Notes during the period 4,381,075 Right of setoff of the Investor Notes (3,000,000 ) Debt discount (1,381,075 ) Accretion of debt discount 41,037 Balance at September 30, 2016 $ 41,037
Debt Instrument, Funded and Unfunded Portions [Table Text Block]	September 30, 2016 Investor notes - Available funding (subject to limitations) $ 3,000,000 Unfunded amount of investor notes (3,000,000 ) Investor notes - funded (prior to any repayments) $ -

Note 6 - Fair Value of Financ21

Note 6 - Fair Value of Financial Assets and Liabilities Measured on a Recurring Basis (Tables)	9 Months Ended
	Sep. 30, 2016
Notes Tables
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]	Carrying Fair Value Measurement Using Value Level 1 Level 2 Level 3 Total Derivative liability - warrants $ 74,444 $ - $ - $ 74,444 $ 74,444 Derivative liability – conversion feature $ 1,417,504 $ - $ - $ 1,417,504 $ 1,417,504 Carrying Fair Value Measurement Using Value Level 1 Level 2 Level 3 Total Derivative conversion features and warrant liabilities $ - $ - $ - $ - $ -
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]	Fair Value Measurement Using Level 3 Inputs Total Balance, January 1, 2016 $ - Purchases, issuances and settlements 1,893,651 Change in fair value of derivative liabilities (401,703 ) Balance, September 30, 2016 $ 1,491,948
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block]	Dividend Yield 0% Expected Volatility 154.0 - 190.1% Risk free interest rate 1.12% Contractual term (in years) 1.15 - 5.0 Exercise price $8.075 - 9.36

Note 9 - Contractual Obligati22

Note 9 - Contractual Obligations and Commitments (Tables)	9 Months Ended
	Sep. 30, 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) 91,607 91,607 - - - Total $ 91,607 $ 91,607 $ - $ - $ -

Note 11 - Warrants (Tables)

Note 11 - Warrants (Tables)	9 Months Ended
	Sep. 30, 2016
Notes Tables
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block]	Number of Warrants Weighted Average Exercise Price Weighted Average Remaining Contractual Life Outstanding - January 1, 2016 - $ - - Granted 9,908 9.36 5 Exercised - - - Forfeited/Cancelled - - - Outstanding – September 30, 2016 9,908 $ 9.36 4.98 Exercisable – September 30, 2016 9,908 $ 9.36 4.98

Note 1 - Organization (Details

Note 1 - Organization (Details Textual) - Subsequent Event [Member] - Zone Technologies, Inc. [Member]	Nov. 09, 2016shares
Stock Issued During Period, Shares, Acquisitions	1,740,000
Business Combination, Exchange Ratio	0.174

Note 3 - Liquidity and Manage25

Note 3 - Liquidity and Management Plans (Details Textual) - USD ($)	Sep. 30, 2016	Sep. 07, 2016	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Senior Secured Convertible Notes [Member]
Proceeds from Convertible Debt		$ 1,000,000			$ 1,000,000
Investor Note [Member]
Financing Receivable, Net	$ 3,000,000	$ 3,000,000	$ 3,000,000		3,000,000
Zone Note [Member]
Origination of Notes Receivable from Related Parties	$ 750,000				750,000
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest			$ (923,670)	$ (2,263,187)	(1,198,325)	$ (2,141,525)
Origination of Notes Receivable from Related Parties					$ 750,000

Note 4 - Summary of Significa26

Note 4 - Summary of Significant Accounting Policies - Anti-dilutive Securities (Details) - shares	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Warrant [Member]
Warrants (in shares)	9,908
Convertible Debt Securities [Member]
Warrants (in shares)	161,124
Warrants (in shares)	171,032

Note 5 - Securities Purchase 27

Note 5 - Securities Purchase Agreement (Details Textual)	Oct. 25, 2016USD ($)	Oct. 24, 2016USD ($)$ / shares	Sep. 30, 2016USD ($)$ / shares	Sep. 07, 2016USD ($)$ / sharesshares	Nov. 18, 2016USD ($)	Sep. 30, 2016USD ($)$ / shares	Sep. 30, 2015USD ($)	Sep. 30, 2016USD ($)$ / shares	Sep. 30, 2015USD ($)	Nov. 15, 2016USD ($)$ / shares
Senior Secured Convertible Notes [Member] | Maximum [Member] | Subsequent Event [Member]
Debt Instrument, Convertible, Conversion Price | $ / shares		$ 5.75
Senior Secured Convertible Notes [Member] | Subsequent Event [Member]
Debt Instrument, Face Amount										$ 1,000,000
Debt Instrument, Convertible, Conversion Price | $ / shares										$ 4.51
Voluntary Prepayment of Notes Receivable that Will Trigger the Debt Instrument's Alternate Conversion Price		$ 1,000,000
Senior Secured Convertible Notes [Member]
Debt Instrument, Face Amount				$ 4,301,075
Proceeds from Convertible Debt				1,000,000				$ 1,000,000
Debt Instrument, Unamortized Discount				301,075
Interest Expense				$ 244,925
Debt Instrument, Term				1 year 90 days
Debt Instrument, Interest Rate, Stated Percentage				6.00%
Debt Instrument, Debt Default Interest Rate, First 30 days				12.00%
Debt Instrument, Debt Default Interest Rate, After First 30 days				18.00%
Debt Instrument, Convertible, Conversion Price | $ / shares				$ 8.075
Debt Instrument Convertible Conversion Price Floor | $ / shares			$ 4			$ 4		$ 4
Debt Instrument, Convertible, Conversion Price, Percentage of the Quotient Used in Calculation			87.00%			87.00%		87.00%
Debt Instrument, Convertible, Threshold Consecutive Trading Days								5 years
Debt Instrument, Convertible, Conversion Price, Denominator								5
Debt Instrument, Redemption Price, Percentage				110.00%
Debt Instrument, Debt Default Redemption Price, Percentage				125.00%
Percentage of Lowest Volumn Weighted Average Price of Common Stock				75.00%
Percentage of Sum of Maximum Number of Shares Issuable Upon Conversion of Notes				125.00%
Liquidated Damage, Percentage				1.50%
Palladium Note Payable [Member]
Debt Instrument, Face Amount				$ 80,000
Debt Instrument, Term				1 year 90 days
Debt Instrument, Interest Rate, Stated Percentage				6.00%
Debt Instrument, Debt Default Interest Rate, First 30 days				12.00%
Debt Instrument, Debt Default Interest Rate, After First 30 days				18.00%
Investor Note [Member] | Subsequent Event [Member]
Proceeds from Collection of Notes Receivable					$ 2,000,000
Investor Note [Member]
Financing Receivable, Net			$ 3,000,000	$ 3,000,000		$ 3,000,000		$ 3,000,000
Mandatory Prepayment Upon Conversion of Notes, Trigger Amount				$ 1,301,075
Zone Note [Member] | Subsequent Event [Member]
Payments to Fund Long-term Loans to Related Parties	$ 383,305
Due from Related Parties	$ 1,133,305
Zone Note [Member]
Origination of Notes Receivable from Related Parties			$ 750,000					$ 750,000
Note Receivable, Interest Rate, Stated Percentage			6.00%			6.00%		6.00%
Warrants Issued for Placement Agent Services [Member]
Class of Warrant or Right, Term				5 years
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | shares				9,908
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares				$ 9.36
Interest Expense						$ 244,925		$ 244,925
Origination of Notes Receivable from Related Parties								$ 750,000

Note 5 - Securities Purchase 28

Note 5 - Securities Purchase Agreement - Activity in the Convertible Notes (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Senior Secured Convertible Notes [Member]
Balance at December 31, 2015
Issuance of Notes during the period			4,381,075
Right of setoff of the Investor Notes			(3,000,000)
Debt discount			(1,381,075)
Accretion of debt discount			41,037
Balance at September 30, 2016	$ 41,037		41,037
Accretion of debt discount	$ 41,037		$ 41,037

Note 5 - Securities Purchase 29

Note 5 - Securities Purchase Agreement - Investor Notes (Details) - Investor Note [Member] - USD ($)	Sep. 30, 2016	Sep. 07, 2016
Investor notes - Available funding (subject to limitations)	$ 3,000,000	$ 3,000,000
Unfunded amount of investor notes	(3,000,000)
Investor notes - funded (prior to any repayments)

Note 6 - Fair Value of Financ30

Note 6 - Fair Value of Financial Assets and Liabilities Measured on a Recurring Basis - Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Reported Value Measurement [Member] | Fair Value, Measurements, Recurring [Member]
Derivative liability - warrants	$ 74,444
Derivative liability – conversion feature	1,417,504
Derivative conversion features and warrant liabilities
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Derivative liability - warrants
Derivative liability – conversion feature
Derivative conversion features and warrant liabilities
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Derivative liability - warrants
Derivative liability – conversion feature
Derivative conversion features and warrant liabilities
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Derivative liability - warrants	74,444
Derivative liability – conversion feature	1,417,504
Derivative conversion features and warrant liabilities
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member]
Derivative liability - warrants	74,444
Derivative liability – conversion feature	1,417,504
Derivative conversion features and warrant liabilities
Derivative liability - warrants	74,444
Derivative liability – conversion feature	$ 1,417,504

Note 6 - Fair Value of Financ31

Note 6 - Fair Value of Financial Assets and Liabilities Measured on a Recurring Basis - Summary of the Changes in Fair Value (Details)	9 Months Ended
	Sep. 30, 2016USD ($)
Balance, January 1, 2016
Purchases, issuances and settlements	1,893,651
Change in fair value of derivative liabilities	(401,703)
Balance, September 30, 2016	$ 1,491,948

Note 6 - Fair Value of Financ32

Note 6 - Fair Value of Financial Assets and Liabilities Measured on a Recurring Basis - Valuation Assumptions (Details) - Derivative Conversion Features and Warrant Liabilities [Member]	9 Months Ended
	Sep. 30, 2016$ / shares
Minimum [Member]
Expected Volatility	154.00%
Contractual term (in years)	1 year 54 days
Exercise price (in dollars per share)	$ 8.075
Maximum [Member]
Expected Volatility	190.10%
Contractual term (in years)	5 years
Exercise price (in dollars per share)	$ 9.36
Dividend Yield	0.00%
Risk free interest rate	1.12%

Note 7 - Stock Based Compensa33

Note 7 - Stock Based Compensation (Details Textual) - shares	Nov. 07, 2016	Sep. 30, 2016
The 1997 Stock Options and Award Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number		0
The 2014 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number		0
Common Stock, Capital Shares Reserved for Future Issuance		400,000
Employee Stock Option Plan [Member] | Subsequent Event [Member]
Common Stock, Capital Shares Reserved for Future Issuance	1,125,000

Note 8 - Concentration of Cre34

Note 8 - Concentration of Credit Risk (Details Textual) $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)
Customer Concentration Risk [Member] | Sales Revenue, Services, Net [Member]
Number of Major Customers	4	4
Concentration Risk, Percentage	90.00%	90.40%
Customer Concentration Risk Termination [Member] | Sales Revenue Development Center [Member] | Scenario, Forecast [Member]
Contracts Revenue			$ 1,800
Customer Concentration Risk Termination [Member] | Sales Revenue Development Center [Member]
Contracts Revenue	$ 1,800	$ 2,540		$ 3,570

Note 9 - Contractual Obligati35

Note 9 - Contractual Obligations and Commitments - Contractual Obligations (Details)	Sep. 30, 2016USD ($)	[1]
Payments Due by Period Total	$ 91,607
Payments Due by Period Less Than 1 Year	91,607
Payments Due by Period 1 - 3 Years
Payments Due by Period 3 - 5 Years
Payments Due by Period More Than 5 Years
[1]	The Company has a New York facility with a lease term expiring April 30, 2017.

Note 10 - Transactions With R36

Note 10 - Transactions With Related Party (Details Textual) - USD ($)	3 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Maruthi Consulting Inc., Subsidiary [Member]
Accounts Receivable, Related Parties	$ 61,000	$ 61,000
Accounts Payable, Related Parties, Current	2,000	$ 2,000
Helios and Matheson IT (Bangalore) Ltd. [Member] | Operating Expense [Member] | Professional Services [Member]
Related Party Transaction, Expenses from Transactions with Related Party	$ 178,820

Note 11 - Warrants (Details Tex

Note 11 - Warrants (Details Textual) - Warrants Issued for Placement Agent Services [Member] - USD ($)	Sep. 07, 2016	Sep. 30, 2016
Class of Warrant or Right, Number of Securities Called by Warrants or Rights	9,908
Class of Warrant or Right, Term	5 years
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 9.36
Class of Warrant or Right, Intrinsic Value		$ 0

Note 11 - Warrants - Warrant Ac

Note 11 - Warrants - Warrant Activity (Details) - Warrants Issued for Placement Agent Services [Member] - $ / shares	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Number of Warrants, Beginning Balance (in shares)
Weighted Average Exercise Price, Begining (in dollars per share)
Weighted Average Remaining Contractual Life	4 years 357 days
Number of Warrants, Granted (in shares)	9,908
Weighted Average Exercise Price, Granted (in dollars per share)	$ 9.36
Weighted Average Remaining Contractual Life, Granted	5 years
Number of Warrants, Exercised (in shares)
Weighted Average Exercise Price, Exercised (in dollars per share)
Weighted Average Remaining Contractual Life, Exercised
Number of Warrants, Forfeited/Cancelled (in shares)
Weighted Average Exercise Price, Forfeited/Cancelled (in dollars per share)
Weighted Average Remaining Contractual Life, Forfeited/Cancelled
Number of Warrants, Ending Balance (in shares)	9,908
Weighted Average Exercise Price, Ending (in dollars per share)	$ 9.36
Number of Warrants, Exercisable (in shares)	9,908
Weighted Average Exercise Price, Exercisable (in dollars per share)	$ 9.36
Weighted Average Remaining Contractual Life, Exercisable	4 years 357 days

Note 12 - Subsequent Events (De

Note 12 - Subsequent Events (Details Textual)	Nov. 16, 2016USD ($)	Nov. 15, 2016USD ($)$ / shares	Nov. 09, 2016shares	Nov. 15, 2016USD ($)$ / sharesshares	Sep. 07, 2016USD ($)$ / shares	Jul. 25, 2016USD ($)
Subsequent Event [Member] | Zone Technologies, Inc. [Member]
Stock Issued During Period, Shares, Acquisitions | shares			1,740,000
Business Combination, Exchange Ratio			0.174
Subsequent Event [Member] | Senior Secured Convertible Notes [Member]
Debt Instrument, Face Amount		$ 1,000,000		$ 1,000,000
Debt Instrument, Convertible, Conversion Price | $ / shares		$ 4.51		$ 4.51
Extinguishment of Debt, Amount	$ 2,000,000
Subsequent Event [Member] | Converted Debt to Common Stock [Member]
Debt Conversion, Original Debt, Amount		$ 100,000		$ 3,401,075
Debt Conversion, Original Debt, Accrued Interest				$ 32,412.20
Debt Conversion, Converted Instrument, Shares Issued | shares				658,929
Minimum [Member]
Stockholders' Equity Attributable to Parent						$ 2,500,000
Senior Secured Convertible Notes [Member]
Debt Instrument, Face Amount					$ 4,301,075
Debt Instrument, Convertible, Conversion Price | $ / shares					$ 8.075