Intellinetics (INLX) 10-Q 15 May 19 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2019	May 13, 2019
Document And Entity Information
Entity Registrant Name	INTELLINETICS, INC.
Entity Central Index Key	0001081745
Document Type	10-Q
Document Period End Date	Mar. 31, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Small Business Flag	true
Entity Emerging Growth Company	false
Entity Ex Transition Period	false
Entity Common Stock, Shares Outstanding		18,524,878
Trading Symbol	INLX
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2019

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Current assets:
Cash	$ 788,952	$ 1,088,630
Accounts receivable, net	149,718	135,739
Prepaid expenses and other current assets	125,124	162,495
Total current assets	1,063,794	1,386,864
Property and equipment, net	7,222	9,131
Right of use asset	128,221
Other assets	10,284	10,284
Total assets	1,209,521	1,406,279
Current liabilities:
Accounts payable and accrued expenses	366,611	308,121
Lease liability - current	32,285
Deferred revenues	651,861	723,619
Deferred compensation	154,089	165,166
Notes payable - related party - current	35,552	46,807
Total current liabilities	1,240,398	1,243,713
Long-term liabilities:
Notes payable	3,193,685	3,144,926
Notes payable - related party - net of current portion	1,060,820	1,045,937
Lease liability - net of current portion	100,715
Other long-term liabilities	670,724	502,295
Total long-term liabilities	5,025,944	4,693,158
Total liabilities	6,266,342	5,936,871
Stockholders' deficit:
Common stock, $0.001 par value, 75,000,000 shares authorized; 18,524,878 and 17,729,421 shares issued and outstanding at March 31, 2019 and December 31, 2018, respectively	31,528	30,733
Additional paid-in capital	14,244,289	14,101,460
Accumulated deficit	(19,332,638)	(18,662,785)
Total stockholders' deficit	(5,056,821)	(4,530,592)
Total liabilities and stockholders' deficit	$ 1,209,521	$ 1,406,279

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	75,000,000	75,000,000
Common stock, shares issued	18,524,878	17,729,421
Common stock, shares outstanding	18,524,878	17,729,421

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Revenues:
Sale of software	$ 1,750	$ 40,994
Software as a service	199,183	176,600
Software maintenance services	252,636	243,568
Professional services	51,667	58,951
Third Party services	10,149	5,261
Total revenues	515,385	525,374
Cost of revenues:
Sale of software	1,846	17,861
Software as a service	67,689	77,093
Software maintenance services	29,378	25,536
Professional services	33,506	16,825
Third Party services	10,046	10,245
Total cost of revenues	142,465	147,560
Gross profit	372,920	377,814
Operating expenses:
General and administrative	538,961	543,437
Sales and marketing	268,757	261,709
Depreciation	1,908	2,194
Total operating expenses	809,626	807,340
Loss from operations	(436,706)	(429,526)
Other income (expense)
Interest expense, net	(233,147)	(208,984)
Total other income (expense)	(233,147)	(208,984)
Net loss	$ (669,853)	$ (638,510)
Basic and diluted net loss per share:	$ (0.04)	$ (0.04)
Weighted average number of common shares outstanding - basic and diluted	18,480,189	17,719,220

Condensed Consolidated Statem_2

Condensed Consolidated Statement of Stockholders' Deficit (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]	Total
Balance at Dec. 31, 2017	$ 30,431	$ 13,648,519	$ (16,322,505)	$ (2,643,555)
Balance, Shares at Dec. 31, 2017	17,426,792
Stock Issued to Directors and Employee	$ 302	57,198		57,500
Stock Issued to Directors and Employee, Shares	302,629
Stock Option Compensation		62,088		62,088
Net Loss			(638,510)	(638,510)
Balance at Mar. 31, 2018	$ 30,733	13,767,805	(16,961,015)	(3,162,477)
Balance, Shares at Mar. 31, 2018	17,729,421
Balance at Dec. 31, 2018	$ 30,733	14,101,460	(18,662,785)	(4,530,592)
Balance, Shares at Dec. 31, 2018	17,729,421
Stock Issued to Directors and Employee	$ 795	86,705		87,500
Stock Issued to Directors and Employee, Shares	795,457
Stock Option Compensation		56,124		56,124
Net Loss			(669,853)	(669,853)
Balance at Mar. 31, 2019	$ 31,528	$ 14,244,289	$ (19,332,638)	$ (5,056,821)
Balance, Shares at Mar. 31, 2019	18,524,878

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Cash flows from operating activities:
Net loss	$ (669,853)	$ (638,510)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	1,908	2,194
Bad debt expense	2,661	(5,878)
Amortization of deferred financing costs	45,963	62,216
Amortization of beneficial conversion option	17,679	64,238
Amortization of right of use asset	10,329
Stock issued for services	87,500	57,500
Stock options compensation	56,124	62,088
Changes in operating assets and liabilities:
Accounts receivable	(16,640)	90,562
Prepaid expenses and other current assets	37,371	(19,302)
Right of use asset	(138,549)
Accounts payable and accrued expenses	58,490	(27,044)
Lease liability, current and long-term	133,000
Deferred compensation	(11,077)	(11,077)
Other long-term liabilities	168,429	60,634
Deferred revenues	(71,758)	(103,377)
Total adjustments	381,430	232,754
Net cash used in operating activities	(288,423)	(405,756)
Cash flows from financing activities:
Repayment of notes payable - related parties	(11,255)	(10,077)
Net cash used in financing activities	(11,255)	(10,077)
Net decrease in cash	(299,678)	(415,833)
Cash - beginning of period	1,088,630	1,125,921
Cash - end of period	788,952	710,088
Supplemental disclosure of cash flow information:
Cash paid during the period for interest and taxes	$ 2,652	$ 24,688

Business Organization and Natur

Business Organization and Nature of Operations	3 Months Ended
	Mar. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business Organization and Nature of Operations	1. Business Organization and Nature of Operations Intellinetics, Inc., formerly known as GlobalWise Investments, Inc., (“Intellinetics”), is a Nevada corporation incorporated in 1997, with a single operating subsidiary, Intellinetics, Inc., an Ohio corporation (“Intellinetics Ohio”), together with Intellinetics, the (“Company,” “we,” “us,” and “our”). Intellinetics Ohio was incorporated in 1996, and on February 10, 2012, Intellinetics Ohio became the sole operating subsidiary of Intellinetics as a result of a reverse merger and recapitalization. The Company is a document solutions software development, sales and marketing company serving both the public and private sectors. The Company’s software platform allows customers to capture and manage all documents across operations such as scanned hard-copy documents and all digital documents including those from Microsoft Office 365, digital images, audio, video and emails. The Company’s solutions create value for customers by making it easy to connect business-critical documents to the processes they drive by making them easy to find, secure and compliant with its customers’ audit requirements.

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	2. Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) for interim financial information and the instructions to Form 10-Q and Article 8.03 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP. In the opinion of management, all adjustments (consisting of normal accruals) considered for a fair presentation of the consolidated financial position of the Company as of March 31, 2019 and the consolidated results of its operations and cash flows for the three months ended March 31, 2019 and 2018, have been included. The Company has evaluated subsequent events through the issuance of this Form 10-Q. Operating results for the three months ended March 31, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019 or any other interim or future period. For further information, refer to the consolidated financial statements and footnotes thereto for the year ended December 31, 2018 included in the Company’s Form 10-K filed with the Securities and Exchange Commission on April 1, 2019.

Liquidity and Management's Plan

Liquidity and Management's Plans	3 Months Ended
	Mar. 31, 2019
Liquidity And Managements Plans
Liquidity and Management's Plans	3. Liquidity and Management’s Plans Through March 31, 2019, the Company had incurred an accumulated deficit since its inception of $19,332,638. At March 31, 2019, the Company had a cash balance of $788,952. From the Company’s inception, it has generated revenues from the sales and implementation of its internally generated software applications. The Company’s business plan is to increase our sales and market share by developing a targeted marketing approach to select vertical markets and an expanded network of resellers through which we expect to sell our expanded software product portfolio, as well as continue to enhance our direct selling results. We expect that this marketing initiative will require us to continue our efforts towards direct marketing campaigns and leads management, reseller training and on-boarding, and to develop additional software integration and customization capabilities, all of which will require additional capital. The Company expects that through the next 12 months, the capital requirements to fund the Company’s growth, service existing debt obligations, and to cover the operating costs as a public company will exceed the cash flows that it intends to generate from its operations. During 2019 and 2018, the Company has used the proceeds from the convertible note issuances to sustain operations and to follow through on the execution of its business plan. There is no assurance that the Company has or will be able to obtain sufficient funds to fund the Company’s operations. Given these conditions, the Company’s ability to continue as a going concern is contingent upon increasing its revenues and successfully managing its cash requirements. In addition, the Company’s ability to continue as a going concern must be considered in light of the problems, expenses and complications frequently encountered by entrants into established markets, the competitive environment in which the Company operates and its cash requirements. These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern. Since inception, the Company’s operations have primarily been funded through a combination of gross profits, state business development loans, bank loans, convertible loans, and the sale of securities. Although management believes that the Company may have access to additional capital resources, there are currently no commitments or arrangements in effect that would provide for new financing and there is no assurance that the Company will be able to obtain additional funds on commercially acceptable terms, if at all. The current level of cash and operating margins may not be enough to cover the existing fixed and variable obligations of the Company, so increased revenue performance and the addition of capital are critical to the Company’s success. The Company’s consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should it be unable to continue as a going concern.

Corporate Actions

Corporate Actions	3 Months Ended
	Mar. 31, 2019
Deferred Interest Expense
Corporate Actions	4. Corporate Actions On February 10, 2012, Intellinetics Ohio was acquired by Intellinetics, when it was known as GlobalWise Investments, Inc., pursuant to a reverse merger, with Intellinetics Ohio surviving as a wholly owned subsidiary of Intellinetics. On September 1, 2014, the Company changed its name from GlobalWise Investments, Inc., to Intellinetics, Inc. and effected a one-for-seven (1-for-7) reverse stock split of the Company’s common stock. All share and per share amounts herein have been adjusted to reflect the reverse stock split.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2019
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	5. Summary of Significant Accounting Policies Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions. Such estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses. Actual results could differ from estimated amounts. Significant estimates and assumptions include valuation allowances related to receivables, the recoverability of long-term assets, depreciable lives of property and equipment, estimates of fair value deferred taxes and related valuation allowances. The Company’s management monitors these risks and assesses its business and financial risks on a quarterly basis. Concentrations of Credit Risk The Company maintains its cash with high credit quality financial institutions. At times, the Company’s cash and cash equivalents may be uninsured or in deposit accounts that exceed the Federal Deposit Insurance Corporation insurance limit. The number of customers that comprise the Company’s customer base, along with the different industries, governmental entities and geographic regions, in which the Company’s customers operate, limits concentrations of credit risk with respect to accounts receivable. The Company does not generally require collateral or other security to support customer receivables; however, the Company may require its customers to provide retainers, up-front deposits or irrevocable letters-of-credit when considered necessary to mitigate credit risks. The Company has established an allowance for doubtful accounts based upon facts surrounding the credit risk of specific customers and past collections history. Credit losses have been within management’s expectations. At March 31, 2019 and December 31, 2018, the Company’s allowance for doubtful accounts was $10,088 and $7,427, respectively. Property and Equipment Property, equipment and leasehold improvements are stated at cost less accumulated depreciation and amortization. Depreciation and amortization is computed over the estimated useful lives of the related assets on a straight-line basis. Furniture and fixtures, computer hardware and purchased software are depreciated over three to seven years. Leasehold improvements are amortized over the life of the lease or the asset, whichever is shorter, generally seven to ten years. Upon retirement or other disposition of these assets, the cost and related accumulated depreciation and amortization of these assets are removed from the accounts and the resulting gains and losses are reflected in the results of operations. Impairment of Long-Lived Assets The Company accounts for the impairment and disposition of long-lived assets in accordance with Accounting Standards Codification (“ASC”) 360, “Property, Plant, and Equipment.” The Company tests long-lived assets or asset groups, such as property and equipment, for recoverability when events or changes in circumstances indicate that their carrying amount may not be recoverable. Circumstances which could trigger a review include, but are not limited to: significant adverse changes in the business climate or legal factors; current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the asset; and a current expectation that the asset will more likely than not be sold or disposed of before the end of its estimated useful life. Recoverability is assessed based on comparing the carrying amount of the asset to the aggregate pre-tax undiscounted cash flows expected to result from the use and eventual disposal of the asset or asset group. Impairment is recognized when the carrying amount is not recoverable and exceeds the fair value of the asset or asset group. The impairment loss, if any, is measured as the amount by which the carrying amount exceeds fair value, which for this purpose is based upon the discounted projected future cash flows of the asset or asset group. Share-Based Compensation The Company accounts for stock-based payments to employees in accordance with ASC 718, “Stock Compensation.” Stock-based payments to employees include grants of stock that are recognized in the consolidated statement of operations based on their fair values at the date of grant. The Company accounts for stock-based payments to non-employees in accordance with ASC 718, “Equity-Based Payments to Non-Employees,” which requires that such equity instruments are recorded at their fair value on the grant date. The grant date fair value of stock option awards is recognized in earnings as share-based compensation cost over the requisite service period of the award using the straight-line attribution method. The Company estimates the fair value of the stock option awards using the Black-Scholes-Merton option pricing model. The exercise price of options is specified in the stock option agreements. The expected volatility is based on the historical volatility of the Company’s stock for the previous period equal to the expected term of the options. The expected term of options granted is based on the midpoint between the vesting date and the end of the contractual term. The risk-free interest rate is based upon a U.S. Treasury instrument with a life that is similar to the expected term of the options. The expected dividend yield is based upon the yield expected on date of grant to occur over the term of the option. For the three months ended March 31, 2019, the Company recorded share-based compensation to employees of $86,124 and to non-employees of $57,500. For the three months ended March 31, 2018, the Company recorded share-based compensation to employees of $62,088 and to non-employees of $57,500. Software Development Costs Software development costs for software to be sold or otherwise marketed incurred prior to the establishment of technological feasibility are expensed as incurred. The Company defines establishment of technological feasibility as the completion of a working model. Software development costs incurred subsequent to the establishment of technological feasibility through the period of general market availability of the product are capitalized, if material. To date, all software development costs for software to be sold or otherwise marketed have been expensed as incurred. In accordance with ASC 350-40, “Internal-Use Software,” the Company capitalizes purchase and implementation costs of internal use software. No such costs were capitalized during the periods presented. Research and Development We design, develop, test, market, license, and support new software products and enhancements of current products. We continuously monitor our software products and enhancements to remain compatible with standard platforms and file formats. We expense our software development costs as incurred. For the three months ending March 31, 2019 and 2018, our research and development costs were $116,088 and $106,445, respectively. Recent Accounting Pronouncements Leases In February 2016, the FASB issued ASU No. 2016-02, Leases (“ASC 842”) (“ASU 2016-02”), which modified lease accounting for both lessees and lessors to increase transparency and comparability by recognizing lease assets and lease liabilities by lessees for those leases classified as operating leases under previous accounting standards and disclosing key information about leasing arrangements. ASU 2016-02 is effective for the Company beginning in its first quarter of 2019. On January 1, 2019, the Company recorded a lease liability of $143,761 and a net right-of-use asset of $138,549 using the required modified retroactive approach. In adopting ASC 842, the Company elected to utilize the available package of practical expedients permitted under the transition guidance within the new standard, which does not require the reassessment of the following: i) whether existing or expired arrangements are or contain a lease, ii) the lease classification of existing or expired leases, and iii) whether previous initial costs would qualify as capitalization under the new lease standard. Revenue Recognition Effective January 1, 2018, we adopted ASC 606, “Revenue from Contracts with Customers” (“ASC 606”), using the full retrospective transition method. Adoption of the standard using the full retrospective method required us to restate certain previously reported results. In accordance with ASC 606, the Company follows a five-step model to assess each contract of a sale or service to a customer: identify the legally binding contract, identify the performance obligations, determine the transaction price, allocate the transaction price, and determine whether revenue will be recognized at a point in time or over time. Revenue is recognized when a performance obligation is satisfied and the customer obtains control of promised goods and services. The amount of revenue recognized reflects the consideration to which we expect to be entitled to receive in exchange for these goods and services. In addition, ASC 606 requires disclosures of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. We categorize revenue as software, software as a service, software maintenance services, professional services, and third party services. We earn the majority of our revenue from the sale of software as a service and the sale of software maintenance services. Specific revenue recognition policies apply to each category of revenue. a) Sale of software Revenues included in this classification typically include sales of licenses with professional services to new customers, additional software licenses to existing customers, and sales of software with or without services to the Company’s resellers (See section j) - Reseller Agreements, below. Our software licenses are functional intellectual property and typically provide customers with the right to use our software in perpetuity as it exists when made available to the customer. We recognize revenue from software licenses at a point in time upon delivery, provided all other revenue recognition criteria are met. b) Sale of software as a service Sale of software as a service (“SaaS”) consists of revenues from arrangements that provide customers the use of the Company’s software applications, as a service, typically billed on a monthly or annual basis. Advance billings of these services are not recorded to the extent that the term of the arrangement has not commenced and payment has not been received. Revenue on these services is recognized over the contract period. c) Sale of software maintenance services Software maintenance services revenues consist of revenues derived from arrangements that provide post-contract support (“PCS”), including software support and bug fixes, to the Company’s software license holders. Advance billings of PCS are not recorded to the extent that the term of the PCS has not commenced and payment has not been received. PCS is considered distinct services. However, these distinct services are considered a single performance obligation consisting of a series of services that are substantially the same and have the same pattern of transfer to the customer. These revenues are recognized ratably over the term of the maintenance contract. d) Sale of professional services Professional services consist principally of revenues from consulting, advisory services, training and customer assistance with management and uploading of data into the Company’s applications. We recognize professional services revenue over time as the services are delivered using an input method (i.e., labor hours incurred as a percentage of total labor hours budgeted), provided all other revenue recognition criteria are met. e) Sale of third party services Sale of third party services consist principally of third party software and/or equipment as a pass through of software and equipment purchased from third parties at the request of customers. We recognize revenue from third party services at a point in time upon delivery, provided all other revenue recognition criteria are met. In addition, we have considered our relationship with third party vendors as it relates to principal vs. agent considerations and have determined that we are in control of establishing the transaction price for the customer, managing all aspects of the shipments process and taking the risk of loss for delivery, collection, and returns. Based on our evaluation of the control model, we determined that we act as the principal rather than the agent within our revenue arrangements and as such, revenues are reported on a gross basis. f) Arrangements with multiple performance obligations In addition to selling software licenses, software as a service, software maintenance services, professional services, and third party services on a stand-alone basis, a portion of our contracts include multiple performance obligations. For contracts with multiple performance obligations, the Company allocates the transaction price of the contract to each distinct performance obligation, on a relative basis using its standalone selling price. The Company determines the standalone selling price based on the price charged for the deliverable when sold separately. g) Contract balances When the timing of our delivery of goods or services is different from the timing of payments made by customers, we recognize either a contract asset (performance precedes contractual due date) or a contract liability (customer payment precedes performance). Customers that prepay are represented by deferred revenue until the performance obligation is satisfied. Contract assets represent arrangements in which the good or service has been delivered but payment is not yet due. Our contract assets consisted of unbilled receivables, which are included in prepaid expenses and other current assets. Our contract liabilities consisted of deferred (unearned) revenue, which is generally related to software as a service or software maintenance contracts. We classify deferred revenue as current or noncurrent based on the timing of when we expect to recognize revenue. The following table present changes in our contract assets and liabilities during the three months ended March 31, 2019 and 2018: Balance at Beginning of Period Revenue Recognized in Advance of Billings Billings Balance at End of Period Three months ended March 31, 2019 Contract assets: Unbilled receivables $ 65,118 $ 52,847 $ (65,118 ) $ 52,847 Three months ended March 31, 2018 Contract assets: Unbilled receivables $ 89,847 $ 78,589 $ (89,847 ) $ 78,589 Balance at Beginning of Period Billings Recognized Revenue Balance at End of Period Three months ended March 31, 2019 Contract liabilities: Deferred revenue $ 723,619 $ 425,905 $ (497,663 ) $ 651,861 Three months ended March 31, 2018 Contract liabilities: Deferred revenue $ 708,130 $ 386,040 $ (489,417 ) $ 604,753 h) Remaining performance obligations Remaining performance obligations represent the transaction price from contracts for which work has not been performed or goods and services have not been delivered. We expect to recognize revenue on approximately 87% of the remaining performance obligations over the next 12 months, with the remainder recognized thereafter. As of March 31, 2019, the aggregate amount of the transaction price allocated to remaining performance obligations for software as a service and software maintenance contracts with a duration greater than one year was $95,845. This does not include revenue related to performance obligations that are part of a contract whose original expected duration is one year or less. i) Rights of return and customer acceptance The Company does not generally offer variable consideration, financing components, rights of return or any other incentives such as concessions, product rotation, or price protection and, therefore, does not provide for or make estimates of rights of return and similar incentives. Our contracts with customers generally do not include customer acceptance clauses. j) Reseller agreements The Company executes certain sales contracts through resellers. The Company recognizes revenues relating to sales through resellers on the sell-in method when all the recognition criteria have been met including passing of control. In addition, the Company assesses the credit-worthiness of each reseller, and if the reseller is undercapitalized or in financial difficulty, any revenues expected to emanate from such resellers are deferred and recognized only when cash is received and all other revenue recognition criteria are met. k) Contract costs The Company recognizes capitalizes for the incremental costs of obtaining a contract with a customer. We have determined that certain sales commissions meet the requirement to be capitalized, and we amortize these costs on a consistent basis with the pattern of transfer of the goods and services in the contract. Total capitalized costs to obtain contracts were immaterial during the periods presented and are included in other current and long-term assets on our consolidated balance sheets. l) Sales taxes Sales taxes charged to and collected from customers as part of the Company’s sales transactions are excluded from revenues, as well as the determination of transaction price for contracts with multiple performance obligations, and recorded as a liability to the applicable governmental taxing authority. Advertising The Company expenses the cost of advertising as incurred. Advertising expense for the three months ended March 31, 2019 and 2018 amounted to $1,028 and $3,501, respectively. Earnings (Loss) Per Share Basic earnings per share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period. The Company has outstanding stock options which have not been included in the calculation of diluted net loss per share because to do so would be anti-dilutive. As such, the numerator and the denominator used in computing both basic and diluted net loss per share for each period are the same. Income Taxes The Company and its subsidiary file a consolidated federal income tax return. The provision for income taxes is computed by applying statutory rates to income before taxes. Deferred income taxes are recognized for the tax consequences in future years of temporary differences between the financial reporting and tax bases of assets and liabilities as of each period-end based on enacted tax laws and statutory rates. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. A 100% valuation allowance has been established on deferred tax assets at March 31, 2019 and December 31, 2018, due to the uncertainty of our ability to realize future taxable income. The Company accounts for uncertainty in income taxes in its financial statements as required under ASC 740,. The standard prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The standard also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition accounting. Management determined there were no material uncertain positions taken by the Company in its tax returns. Statement of Cash Flows For purposes of reporting cash flows, cash includes cash on hand and demand deposits held by banks. Reclassifications Certain amounts in the 2018 consolidated financial statements have been reclassified to conform to current year presentation.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2019
Fair Value Disclosures [Abstract]
Fair Value Measurements	6. Fair Value Measurements Under U.S. GAAP, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy included in U.S. GAAP gives the highest priority to Level 1 inputs, which consist of unadjusted quoted prices for identical instruments in active markets. Level 2 inputs consist of quoted prices for similar instruments. Level 3 valuations are derived from inputs that are significant and unobservable, and these valuations have the lowest priority. Management believes that the carrying values of cash and equivalents, accounts receivable, accounts payable, and accrued expenses approximate fair value because of their short maturity. The table below reflects all notes payable at March 31, 2019 and December 31, 2018, respectively. March 31, 2019 December 31, 2018 Fair Value Fair Value 2016 Unrelated Notes (a) $ 998,355 $ 1,000,261 2017 Unrelated Notes (a) 2,234,736 2,275,686 2018 Unrelated Notes (b) 1,142,763 900,000 Total $ 4,375,854 $ 4,175,947 March 31, 2019 December 31, 2018 Fair Value Fair Value The $250,000 Shealy Note (c) $ 35,552 $ 46,807 2016 Related Notes (a) 431,677 433,117 2017 Related Notes (a) 495,197 504,271 2018 Related Notes (b) 507,894 400,000 Total $ 1,434,769 $ 1,384,195 (a) The fair value was based upon Level 2 inputs. See Note 8 for additional information about the Company’s 2016 and 2017 Unrelated Notes. See Note 9 for additional information about the Company’s 2016 and 2017 Related Notes. (b) The fair value was based upon Level 2 inputs as of March 31, 2019. The 2018 Unrelated and Related Notes were closed in September 2018 between market participants, therefore, given proximity of the transactions to year-end, fair value approximated carrying value at December 31, 2018. See Note 8 for additional information about the Company’s 2018 Unrelated Notes. See Note 9 for additional information about the Company’s 2016 and 2017 Related Notes. (c) The fair value was based upon Level 2 inputs. Short term maturity and interest rate approximates rate that the Company realized with issuance of new debt in September 2018; therefore, carrying value approximates fair value. See Note 9 for additional information about the Company’s $250,000 Shealy Note.

Property and Equipment

Property and Equipment	3 Months Ended
	Mar. 31, 2019
Property, Plant and Equipment [Abstract]
Property and Equipment	7. Property and Equipment Property and equipment are comprised of the following: March 31, 2019 December 31, 2018 Computer hardware and purchased software $ 254,470 $ 254,470 Leasehold improvements 221,666 221,666 Furniture and fixtures 82,056 82,722 558,192 558,192 Less: accumulated depreciation and amortization (550,970 ) (549,061 ) Property and equipment, net $ 7,222 $ 9,131 Total depreciation and amortization expense on the Company’s property and equipment for the three months ended March 31, 2019 and 2018 amounted to $1,909 and $2,194, respectively.

Notes Payable

Notes Payable	3 Months Ended
	Mar. 31, 2019
Debt Disclosure [Abstract]
Notes Payable	8. Notes Payable The Company has evaluated the terms of its convertible notes payable in accordance with ASC 815 – 40, “Derivatives and Hedging - Contracts in Entity’s Own Stock” and determined that the underlying common stock is indexed to the Company’s common stock. The Company determined that the conversion feature did not meet the definition of a liability and therefore did not bifurcate the conversion feature and account for it as a separate derivative liability. The Company evaluated the conversion feature for a beneficial conversion feature. The effective conversion price was compared with the market price on the date of each note. If the conversion price was deemed to be less than the market value of the underlying common stock at the inception of the note, then the Company would recognize a beneficial conversion feature resulting in a discount on the note payable, upon satisfaction of the contingency. The beneficial conversion features are amortized to interest expense over the life of the respective notes, starting from the date of recognition. The Company issued convertible promissory notes on December 30, 2016 in an aggregate amount of $315,000 and on January 6, 2017 and January 31, 2017 in an aggregate amount of $560,000 (collectively, the “2016 Unrelated Notes”) to unrelated accredited investors. Placement agent and escrow agent fees of $100,255 were deducted from the cash proceeds. The notes bore interest at an annual rate of interest of 12 percent until maturity, with partial interest of 6% payable quarterly, and maturity on December 31, 2018. The note investors had a right, in their sole discretion, to convert the notes into shares at a conversion rate of $0.65 per share. On September 17, 2018, the notes were amended to mature on December 31, 2020, and bear interest at an annual rate of interest of 10% until maturity, with partial interest of 5% payable quarterly. With the amendment, the note investors have a right, in their sole discretion, to convert the notes into shares at a conversion rate of $0.40 per share. The amendment was accounted for as a troubled debt restructuring with the future undiscounted cash flows being greater than the carrying value of the debt prior to extension. No gain was recorded, and a new effective interest rate was established based on the carrying value of the debt and the revised future cash flows. If the notes have not been fully repaid by the Company by the maturity date or converted into shares at the election of the note investors prior to maturity, then such notes will accrue interest at the annual rate of 12% from the maturity date until the date the notes are repaid in full. Any interest not paid quarterly will also accrue interest at the annual rate of 7% instead of 5%. The Company used the proceeds of the notes for working capital, general corporate purposes, and debt repayment. The Company recognized an initial beneficial conversion feature in the amount of $369,677, plus a fair value adjustment of $56,661 under the troubled debt restructuring accounting. Interest expense recognized on the amortization of the beneficial conversion feature was $12,675 and $46,209 for the three months ended March 31, 2019 and 2018, respectively. On November 17 and November 30, 2017, the Company issued convertible promissory notes in an aggregate amount of $1,760,000 (“2017 Unrelated Notes”) to unrelated accredited investors. Placement agent and escrow agent fees of $174,810 were deducted from the cash proceeds. The notes mature on November 30, 2019. On September 14, 2018, the notes were amended to mature on December 31, 2020. The amendment was accounted for as a troubled debt restructuring with the future undiscounted cash flows being greater than the carrying value of the debt prior to extension. No gain was recorded, and a new effective interest rate was established based on the carrying value of the debt and the revised future cash flows. The notes bear interest at an annual rate of interest of 8% until maturity, with interest of 8% payable quarterly beginning July 1, 2018. The note investors have a right, in their sole discretion, to convert the notes into shares under certain circumstances at a conversion rate of $0.20 per share. If the notes have not been fully repaid by the Company by the maturity date or converted into shares at the election of the note investors prior to maturity, then such notes will accrue interest at the annual rate of 12% from the maturity date until the date the notes are repaid in full. The Company used the proceeds of the notes for working capital, general corporate purposes, and debt repayment. On September 20 and September 26, 2018, the Company issued convertible promissory notes in an aggregate amount of $900,000 (“2018 Unrelated Notes”) to unrelated accredited investors. Placement agent and escrow agent fees of $106,740 were deducted from the cash proceeds. The notes mature on December 31, 2020, and bear interest at an annual rate of interest of 8% until maturity, with interest of 8% payable quarterly beginning January 2, 2019. The note investors have a right, in their sole discretion, to convert the notes into shares under certain circumstances at a conversion rate of $0.13 per share. If the notes have not been fully repaid by the Company by the maturity date or converted into shares at the election of the note investors prior to maturity, then such notes will accrue interest at the annual rate of 12% from the maturity date until the date the notes are repaid in full. The Company is using the proceeds of the notes for working capital, general corporate purposes, and debt repayment. The table below reflects all notes payable at March 31, 2019 and December 31, 2018, respectively, with the exception of related party notes disclosed in Note 9 - Notes Payable - Related Parties. March 31, 2019 December 31, 2018 2016 Unrelated Notes, net of beneficial conversion feature of $88,730 and $101,405, respectively $ 786,270 $ 773,595 2017 Unrelated Notes 1,760,000 1,760,000 2018 Unrelated Notes 900,000 900,000 Total notes payable $ 3,446,270 $ 3,433,595 Less unamortized debt issuance costs (252,585 ) (288,669 ) Long-term portion of notes payable $ 3,193,685 $ 3,144,926 Future minimum principal payments of these notes payable with the exception of the related party notes in Note 9 - Notes Payable - Related Parties, as described in this Note 8 are as follows: For the Twelve Months Ending March 31, Amount 2021 $ 3,535,000 Total $ 3,535,000 As of March 31, 2019 and December 31, 2018, accrued interest for these notes payable with the exception of the related party notes in Note 8 - Notes Payable - Related Parties, was $507,301 and $379,339, respectively, and was reflected within other long-term liabilities on the consolidated balance sheets. As of March 31, 2019 and December 31, 2018, deferred financing costs were $252,585 and $288,669, respectively, and were reflected within long term liabilities on the consolidated balance sheets. With respect to all notes outstanding (other than the notes to related parties), for the three months ended March 31, 2019, and 2018, interest expense, including the amortization of deferred financing costs, original issue discounts, deferred interest and related fees, interest expense related to warrants issued for the conversion of convertible notes, and the embedded conversion feature was $176,721 and $161,392, respectively.

Notes Payable - Related Parties

Notes Payable - Related Parties	3 Months Ended
	Mar. 31, 2019
Related Party Transactions [Abstract]
Notes Payable - Related Parties	9. Notes Payable - Related Parties On March 29, 2012, the Company issued an unsecured promissory note in the amount of $238,000, bearing interest at a rate of 10%, payable to Ramon Shealy, a then-director of the Company, who subsequently resigned from the Company’s board of directors (“Board of Directors”) on December 17, 2012, for personal reasons. All principal and interest was due and payable on September 27, 2012, but was later extended to November 24, 2012. On April 16, 2012, the Company issued another promissory note payable to Mr. Shealy, in the amount of $12,000, bearing interest at a rate of 10% per quarter. All principal and interest was due on July 15, 2012, but was later extended to November 24, 2012. On November 24, 2012, the two notes were cancelled and replaced with a $250,000 promissory note, under the same terms, with a maturity date of January 1, 2014. On December 24, 2013, the maturity date of the $250,000 promissory note was extended to January 1, 2015. On March 13, 2013, the Company paid $100,000 of the principal amount of the $250,000 promissory note to Mr. Shealy. On December 31, 2014, the Company and Mr. Shealy agreed to extended payment terms for the remaining total principal and interest in the amount of $193,453, payable in sixty (60) monthly installments beginning January 31, 2015, with a maturity date of January 1, 2020. As of March 31, 2019 and December 31, 2018, this Note had a principal balance of $35,552 and $46,807, respectively. On December 30, 2016, the Company issued convertible promissory notes in an aggregate amount of $375,000 (the “2016 Related Notes”) to accredited investors, including Robert Taglich and Michael Taglich (each holding more than 5% beneficial interest in the Company’s shares) and Robert Schroeder (Director). The notes bore interest at an annual rate of interest of 12 percent until maturity, with partial interest of 6% payable quarterly, and mature on December 31, 2018. The note investors had a right, in their sole discretion, to convert the notes into shares at a conversion rate of $0.65 per share. On September 17, 2018, the notes were amended to mature on December 31, 2020, and bear interest at an annual rate of interest of 10% until maturity, with partial interest of 5% payable quarterly. With the amendment, the note investors have a right, in their sole discretion, to convert the notes into shares at a conversion rate of $0.40 per share. The amendment was accounted for as a troubled debt restructuring with the future undiscounted cash flows being greater than the carrying value of the debt prior to extension. No gain was recorded, and a new effective interest rate was established based on the carrying value of the debt and the revised future cash flows. If the notes have not been fully repaid by the Company by the maturity date or converted into shares at the election of the note investors prior to the maturity date, then such notes will accrue interest at the annual rate of 12% from the maturity date until the date the notes are repaid in full. Any interest not paid quarterly will also accrue interest at the annual rate of 7% instead of 5%. The Company used the proceeds of the notes for working capital, general corporate purposes, and debt repayment. The Company recognized an initial beneficial conversion feature in the amount of $144,231, plus a fair value adjustment of $24,710 under the troubled debt restructuring accounting. Interest expense recognized on the amortization of the beneficial conversion feature was $5,004 and $18,029 for the three months ended March 31, 2019 and 2018, respectively. On September 21, 2017, the Company issued convertible promissory notes in a maximum aggregate principal amount of $154,640 (the “2017 Bridge Notes”) to Robert Taglich and Michael Taglich (each holding more than 5% beneficial interest in the Company’s shares). The notes included an original issue discount of $4,640. Interest expense recognized on the amortization of the original discount was $889, for the twelve months ended December 31, 2017. The notes bore interest at an annual rate of interest of 8% beginning March 21, 2018, until maturity on September 21, 2018. The effective interest rate was 7% for the term of the notes. Any interest not paid at maturity would accrue interest at the annual rate of 12% instead of 8%. The note investors had a right, in their sole discretion, to convert the notes into securities to be issued by the Company in a private placement of equity, equity equivalent, convertible debt or debt financing. In conjunction with the issue of the 2016 Bridge Notes, 150,000 warrants were issued. The warrants have an exercise price equal to $0.30 per share and contain a cashless exercise provision. All warrants are immediately exercisable and are exercisable for five years from issuance. The Company recognized debt issuance costs, recorded as a debt discount, on the issue of the warrants in the amount of $38,836. Interest expense recognized on the amortization of the debt discount was $38,836, for the twelve months ended December 31, 2017. On November 30, 2017, principal in the amount of $150,000 of the 2017 Bridge Notes was converted by the note holders into the 2017 Related Notes, described below. On November 17, 2017, the Company issued convertible promissory notes in an aggregate amount of $390,000 (the “2017 Related Notes”) to accredited investors, including Robert Taglich and Michael Taglich (each holding more than 5% beneficial interest in the Company’s shares) and James DeSocio (Executive Officer and Director), in exchange for the conversion of $150,000 principal from the 2017 Bridge Notes and $240,000 cash. The notes mature on November 30, 2019. On September 14, 2018, the notes were amended to mature on December 31, 2020. The amendment was accounted for as a troubled debt restructuring with the future undiscounted cash flows being greater than the carrying value of the debt prior to extension. No gain was recorded, and a new effective interest rate was established based on the carrying value of the debt and the revised future cash flows. The notes bear interest at an annual rate of interest of 8% until maturity, with interest of 8% payable quarterly beginning July 1, 2018. The note investors have a right, in their sole discretion, to convert the notes into shares under certain circumstances at a conversion rate of $0.20 per share. If the notes have not been fully repaid by the Company by the maturity date or converted into shares at the election of the note investors prior to maturity, then such notes will accrue interest at the annual rate of 12% from the maturity date until the date the notes are repaid in full. The Company used the proceeds of the notes for working capital, general corporate purposes, and debt repayment. On September 26, 2018, the Company issued convertible promissory notes in an aggregate amount of $400,000 (the “2018 Related Notes”) to accredited investors, including Robert Taglich and Michael Taglich (each holding more than 5% beneficial interest in the Company’s shares). The notes mature on December 31, 2020, and bear interest at an annual rate of interest of 8% until maturity, with interest of 8% payable quarterly beginning January 2, 2019. The note investors have a right, in their sole discretion, to convert the notes into shares under certain circumstances at a conversion rate of $0.13 per share. If the notes have not been fully repaid by the Company by the maturity date or converted into shares at the election of the note investors prior to maturity, then such notes will accrue interest at the annual rate of 12% from the maturity date until the date the notes are repaid in full. The Company is using the proceeds of the notes for working capital, general corporate purposes, and debt repayment. The table below reflects Notes payable due to related parties at March 31, 2019 and December 31, 2018, respectively: March 31, 2019 December 31, 2018 The $250,000 Shealy Note 35,552 46,807 2016 Related Notes, net of beneficial conversion feature of $35,026 and $40,030, respectively 339,974 334,970 2017 Related Notes 390,000 390,000 2018 Related Notes 400,000 400,000 Total notes payable - related party $ 1,165,526 $ 1,171,777 Unamortized debt issuance costs (69,154 ) (79,033 ) Less current portion (35,552 ) (46,807 ) Long-term portion of notes payable-related party $ 1,060,820 $ 1,045,937 Future minimum principal payments of these notes payable as described in this Note 9 are as follows: For the Twelve Months Ending March 31, Amount 2020 $ 35,552 2021 1,165,000 TOTAL $ 1,200,552 As of March 31, 2019 and December 31, 2018, accrued interest for these notes payable – related parties amounted to $163,423 and $122,956, respectively, and was reflected within other long-term liabilities on the consolidated balance sheets. For the three months ended March 31, 2019, and 2018, interest expense in connection with notes payable – related parties was $56,426 and $47,592, respectively.

Deferred Compensation

Deferred Compensation	3 Months Ended
	Mar. 31, 2019
Compensation Related Costs [Abstract]
Deferred Compensation	10. Deferred Compensation Pursuant to the Company’s employment agreements with the founders, the founders have earned incentive compensation totaling $154,089 and $165,166 payable in cash, as of March 31, 2019 and December 31, 2018, respectively, which payment obligation has been deferred by the Company until it reasonably believes it has sufficient cash to make the payment. Following the retirement of founder A. Michael Chretien on December 8, 2017, the Company expects to make bi-weekly payments of $1,846 until the deferred compensation has been paid, which will comprise 61 full payments and one partial payment of $1,569. For the three months ended March 31, 2019 and 2018, the Company paid $11,077, which is reflected as a reduction in the deferred compensation liability.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	11. Commitments and Contingencies Employment Agreements The Company has entered into employment agreements with three of its key executives. Under their respective agreements, the executives serve at will and are bound by typical confidentiality, non-solicitation and non-competition provisions. Deferred compensation for the founders of the Company, as disclosed in Note 10 above, is still outstanding as of March 31, 2019. Operating Leases On January 1, 2010, the Company entered into an operating lease with a third party for 6,000 rentable square feet of office space in Columbus, Ohio. The lease commenced on January 1, 2010 and, pursuant to a lease extension dated August 9, 2016, the lease expires on December 31, 2021. Future minimum lease payments under this operating lease are as follows: For the Twelve Months Ending March 31, Amount 2020 $ 53,316 2021 54,630 2022 41,742 $ 149,688 Lease costs charged to operations for the three months ended March 31, 2019 and 2018 amounted to $12,814. Additional information pertaining to the Company’s lease are as follows: For the Three Months Ending March 31, 2019: Operating cash flows from operating leases $ 10,761 Weighted average remaining lease term – operating leases 2.8 years Weighted average discount rate – operating leases 8.0 %

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2019
Equity [Abstract]
Stockholders' Equity	12. Stockholders’ Equity Description of Authorized Capital The Company is authorized to issue up to 75,000,000 shares of common stock with $0.001 par value. The holders of the Company’s common stock are entitled to one (1) vote per share. The holders of common stock are entitled to receive ratably such dividends, if any, as may be declared by the Board of Directors out of legally available funds. However, the current policy of the Board of Directors is to retain earnings, if any, for the operation and expansion of the business. Upon liquidation, dissolution or winding-up of the Company, the holders of common stock are entitled to share ratably in all assets of the Company that are legally available for distribution. Issuance of Restricted Common Stock to Directors On January 7, 2019 and January 5, 2018, the Company issued 522,729 and 302,629 shares, respectively, of restricted common stock to directors of the Company as part of an annual compensation plan for directors. The grant of shares was not subject to vesting. For the three months ended March 31, 2019 and 2018, stock compensation of $57,500 was recorded on the issuance of the common stock. Issuance of Restricted Common Stock to Employee On January 7, 2019, the Company issued 272,728 new shares of restricted common stock to an employee of the Company. Stock compensation of $30,000 was recorded on the issuance of the common stock. Issuance of Warrants Between December 30, 2016 and January 30, 2017, the Company issued convertible promissory notes in an aggregate amount of $1,250,000 with certain accredited investors. The Company retained Taglich Brothers, Inc. as the exclusive placement agent for the Convertible Note Offering. In compensation, the Company paid the placement agent a cash payment of 8% of the gross proceeds of the offering, along with warrants to purchase shares, and the reimbursement for the placement agent’s reasonable out of pocket expenses, FINRA filing fees and related legal fees. In January, 2017, the Company paid the placement agent cash in the amount of $100,000 and issued the placement agent 153,846 warrants to purchase shares at an exercise price at $0.75 per share, which are exercisable for a period of five years, contain customary cashless exercise and anti-dilution protection and were entitled to piggyback registration rights with respect to the Registration Statement of the Company made effective in February 2018. Of the warrants issued to the placement agent, 84,923 warrants were issued in conjunction with proceeds raised in December 2016, and underwriting expense of $65,243 was recorded for the issuance of these warrants, utilizing the Black-Scholes valuation model to value the warrants issued. The remaining 68,923 warrants were issued in conjunction with proceeds raised in January 2017, and underwriting expense of $52,951 was recorded for the issuance of these warrants, utilizing the Black-Scholes valuation model to value the warrants issued. The fair value of warrants issued was determined to be $0.77. On September 21, 2017, the Company issued 150,000 warrants to purchase one share to Robert Taglich and Michael Taglich (each holding more than 5% beneficial interest in the Company’s shares) in connection with the 2017 Bridge Notes. The warrants are exercisable to purchase one share at an exercise price of $0.30 per share, contain a cashless exercise provision, and are exercisable for five years after issuance. A debt discount of $38,837 was recorded for the issuance of these warrants, utilizing the Black-Scholes valuation model to value the warrants issued. The 2017 Bridge Notes were converted into the November 2017 Convertible Note Offering. The fair value of warrants issued was determined to be $0.26. Between November 17 and November 30, 2017, the Company issued convertible promissory notes in an aggregate amount of $2,150,000 with certain accredited investors. The Company retained Taglich Brothers, Inc. as the exclusive placement agent for the November 2017 Convertible Note Offering. In compensation, the Company paid the placement agent a cash payment of 8% of the gross proceeds of the offering, along with warrants to purchase shares, and the reimbursement for the placement agent’s reasonable out of pocket expenses, FINRA filing fees and related legal fees. On November 17, 2017, the Company paid the placement agent cash in the amount of $172,000 and issued the placement agent 354,000 warrants to purchase shares at an exercise price at $0.25 per share, which are exercisable for a period of five years, contain customary cashless exercise and anti-dilution protection and were entitled to piggyback registration rights with respect to the Registration Statement of the Company made effective in February 2018. On November 30, 2017, the Company issued the placement agent 506,000 warrants to purchase shares at an exercise price at $0.25 per share, which will be exercisable for a period of five years, contain customary cashless exercise and anti-dilution protection and are entitled to registration rights. Debt issuance costs of $126,603 was recorded for the issuance of the November 17 and November 30, 2017 warrants, utilizing the Black-Scholes valuation model to value the warrants issued. The fair value of warrants issued was determined to be $0.17 and $0.13 for the November 17 and November 30 warrants, respectively. For the three months ended March 31, 2019 and 2018, interest expense of $22,089 and $36,670, respectively, was recorded as amortization of the debt issuance costs. Between September 20 and September 26, 2018, the Company issued convertible promissory notes in an aggregate amount of $1,300,000 with certain accredited investors and related parties. The Company retained Taglich Brothers, Inc. as the exclusive placement agent for the September 2018 Convertible Note Offering. In compensation, the Company paid the placement agent a cash payment of 8% of the gross proceeds of the offering, along with warrants to purchase shares, and reimbursement for the placement agent’s reasonable out of pocket expenses, FINRA filing fees and related legal fees. On September 20, 2018, the Company paid the placement agent cash in the amount of $40,000 and issued the placement agent 307,692 warrants to purchase shares at an exercise price at $0.13 per share, which are exercisable for a period of five years, contain customary cashless exercise and anti-dilution protection and are entitled to limited piggyback registration rights. On September 26, 2018, the Company paid the placement agent cash in the amount of $64,000 and issued the placement agent 492,308 warrants to purchase shares at an exercise price at $0.18 per share, which will be exercisable for a period of five years, contain customary cashless exercise and anti-dilution protection and are entitled to limited piggyback registration rights. Debt issuance costs of $64,348 was recorded for the issuance of the September 20 and September 26, 2018 warrants, utilizing the Black-Scholes valuation model to value the warrants issued. The fair value of warrants issued was determined to be $0.10 and $0.07 for the September 20 and September 26 warrants, respectively. For the three months ended March 31, 2019, interest expense of 21,688 was recorded as amortization of the debt issuance costs. The estimated values of warrants, as well as the assumptions that were used in calculating such values were based on estimates at the issuance date as follows: Placement Agent December 30, 2016 Bridge Noteholders September 21, 2017 Risk-free interest rate 1.93 % 1.89 % Weighted average expected term 5 years 5 years Expected volatility 123.07 % 130.80 % Expected dividend yield 0.00 % 0.00 % Placement Agent November 17, 2017 Placement Agent November 30, 2017 Risk-free interest rate 2.06 % 2.14 % Weighted average expected term 5 years 5 years Expected volatility 129.87 % 129.34 % Expected dividend yield 0.00 % 0.00 % Placement Agent September 20, 2018 Placement Agent September 26, 2018 Risk-free interest rate 2.96 % 2.96 % Weighted average expected term 5 years 5 years Expected volatility 122.52 % 122.92 % Expected dividend yield 0.00 % 0.00 % Shares Issued and Outstanding and Shares Reserved for Exercise of Warrants, Convertible Notes, and the 2015 Plan The Company has 18,524,878 shares issued and outstanding, 6,726,625 shares reserved for issuance upon the exercise of outstanding warrants, 26,244,672 shares reserved for issuance upon the conversion of convertible debt, and 3,366,506 shares reserved for issuance under the Intellinetics Inc. 2015 Equity Incentive Plan (the “2015 Plan”), as of March 31, 2019.

Share-Based Compensation

Share-Based Compensation	3 Months Ended
	Mar. 31, 2019
Share-based Payment Arrangement [Abstract]
Share-Based Compensation	13. Share-Based Compensation On April 30, 2015, the Company entered into a Non-qualified Stock Option Agreement with Sophie Pibouin, a director of the Company, in accordance with the 2015 Plan. The agreement granted options to purchase 128,000 shares prior to the expiration date of April 29, 2025 at an exercise price of $0.75. The options granted vested on a graded scale over a period of time through October 31, 2015. On April 30, 2015, the Company entered into a Non-qualified Stock Option Agreement with Murray Gross, a director of the Company, in accordance with the 2015 Plan. The agreement granted options to purchase 640,000 shares prior to the expiration date of April 29, 2025 at an exercise price of $0.75. 400,000 of the options granted immediately vested on the date of grant, and the remaining 240,000 options granted would have vested upon the date at which the Company first reports two consecutive fiscal quarters with revenues of One Million Dollars ($1,000,000) each. The unvested options were not exercisable after the director’s termination of continuous service, on September 30, 2017, as defined in the agreement. On January 1, 2016, the Company granted employees stock options to purchase 250,000 shares at an exercise price of $0.90 per share in accordance with the 2015 Plan, with vesting continuing until 2019. The total fair value of $196,250 for these stock options will be recognized by the Company over the applicable vesting period. On February 10, 2016, the Company granted employees stock options to purchase 210,000 shares at an exercise price of $0.96 per share in accordance with the 2015 Plan, with vesting continuing until 2020. The total fair value of $174,748 for these stock options will be recognized by the Company over the applicable vesting period. On December 6, 2016, the Company granted one employee stock options to purchase 100,000 shares at an exercise price of $0.76 per share in accordance with the 2015 Plan, with vesting continuing until 2020. The total fair value of $63,937 for these stock options will be recognized by the Company over the applicable vesting period. On March 15, 2017, the Company granted one employee stock options to purchase 100,000 shares at an exercise price of $0.85 per share in accordance with the 2015 Plan, with vesting continuing until 2020. The total fair value of $70,872 for these stock options would have been recognized by the Company over the applicable vesting period. These options were forfeited during 2017 upon the termination of the employee and expiry of the exercise period. The total stock option compensation for the three months ended March 31, 2017 was $4,357. On September 25, 2017, the Company granted an employee stock options to purchase 750,000 shares at an exercise price of $0.30 per share and 500,000 shares at an exercise price of $0.38 per share, in accordance with the 2015 Plan, with vesting continuing until 2019. The total fair value of $321,011 for these stock options will be recognized by the Company over the applicable vesting period. On January 30, 2019, the Company entered into a Non-qualified Stock Option Agreement with an individual consultant to the Company, in accordance with the 2015 Plan. The agreement granted options to purchase 12,500 shares prior to the expiration date of December 31, 2025 at an exercise price of $0.90. The options granted were 100% vested as of the grant date of January 30, 2019. On March 11, 2019, the Company canceled previously granted stock options to employees in the amounts of 150,000 shares at an exercise price of $0.90 per share, and 160,000 shares at an exercise price of $0.96 per share, and 100,000 shares at an exercise price of $0.76 per share, and 750,000 shares at an exercise price of $0.30 per share, and 500,000 shares at an exercise price of $0.38 per share. On March 11, 2019, the Company replaced those canceled stock options totaling 1,660,000 with identical options at an exercise price of $0.13 per share in accordance with the 2015 Plan. The incremental fair value of $24,898 for these stock options will be recognized by the Company over the applicable vesting period through December 2020. On March 11, 2019, the Company granted employees stock options to purchase 505,000 shares at an exercise price of $0.13 per share in accordance with the 2015 Plan, with vesting continuing until 2023. The total fair value of $44,591 for these stock options will be recognized by the Company over the applicable vesting period. The weighted average estimated values of director and employee stock option grants, as well as the weighted average assumptions that were used in calculating such values during the three months ended March 31, 2019 and 2018, were based on estimates at the date of grant as follows: April 30, January 1, February 10, 2015 Grant 2016 Grant 2016 Grant Risk-free interest rate 1.43 % 1.76 % 1.15 % Weighted average expected term 5 years 5 years 5 years Expected volatility 143.10 % 134.18 % 132.97 % Expected dividend yield 0.00 % 0.00 % 0.00 % December 6, March 15, September 25, 2016 Grant 2017 Grant 2017 Grant Risk-free interest rate 1.84 % 2.14 % 1.85 % Weighted average expected term 5 years 5 years 5 years Expected volatility 123.82 % 121.19 % 130.79 % Expected dividend yield 0.00 % 0.00 % 0.00 % January 30, March 11, 2019 Grant 2019 Grant Risk-free interest rate 2.54 % 2.44 % Weighted average expected term 5 years 5 years Expected volatility 115.80 % 116.46 % Expected dividend yield 0.00 % 0.00 % A summary of stock option activity during the three months ended March 31, 2019 under our stock option agreements is as follows: Weighted- Weighted- Average Shares Average Remaining Aggregate Under Exercise Contractual Intrinsic Option Price Life Value Outstanding at January 1, 2019 2,238,000 $ 0.55 8 years 79,200 Granted 2,177,500 0.13 Forfeited and expired (1,672,500 ) 0.86 Outstanding at March 31, 2019 2,743,000 $ 0.26 9 years $ 79,200 Exercisable at March 31, 2019 1,835,500 $ 0.33 9 years $ 79,200 The weighted-average grant date fair value of options granted during the three months ended March 31, 2019 was $0.09. There were no grants during the three months ended March 31, 2018. As of March 31, 2019, and December 31, 2018, there was $179,951 and $185,754, respectively, of total unrecognized compensation costs related to stock options granted under our stock option agreements. The unrecognized compensation cost is expected to be recognized over a weighted-average period of one year. The total fair value of stock options that vested during the three months ended March 31, 2019 and 2018 was $77,660 and $112,662, respectively.

Concentrations

Concentrations	3 Months Ended
	Mar. 31, 2019
Risks and Uncertainties [Abstract]
Concentrations	14. Concentrations Revenues from the Company’s services to a limited number of customers have accounted for a substantial percentage of the Company’s total revenues. For the three months ended March 31, 2019, the Company’s two largest customers, Tiburon, Inc. a reseller, and Laser Systems, Inc. a reseller, accounted for 11% and 8%, respectively, of the Company’s revenue for that period. For the three months ended March 31, 2018, the Company’s two largest customers, Tiburon, Inc., and Sycle.net, a reseller, accounted for 12% and 10%, respectively, of the Company’s revenue for that period. For the three months ended March 31, 2019 and 2018, government contracts represented approximately 33% and 35% of the Company’s net revenues, respectively. A significant portion of the Company’s sales to resellers represent ultimate sales to government agencies. As of March 31, 2019, accounts receivable concentrations from the Company’s two largest customers were 15% and 13% of gross accounts receivable, respectively. As of December 31, 2018, accounts receivable concentrations from the Company’s four largest customers were 22%, 16%, 14% and 14% of gross accounts receivable, respectively. Accounts receivable balances from the Company’s two largest customers at March 31, 2019 have since been partially collected.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2019
Accounting Policies [Abstract]
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions. Such estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses. Actual results could differ from estimated amounts. Significant estimates and assumptions include valuation allowances related to receivables, the recoverability of long-term assets, depreciable lives of property and equipment, estimates of fair value deferred taxes and related valuation allowances. The Company’s management monitors these risks and assesses its business and financial risks on a quarterly basis.
Concentrations of Credit Risk	Concentrations of Credit Risk The Company maintains its cash with high credit quality financial institutions. At times, the Company’s cash and cash equivalents may be uninsured or in deposit accounts that exceed the Federal Deposit Insurance Corporation insurance limit. The number of customers that comprise the Company’s customer base, along with the different industries, governmental entities and geographic regions, in which the Company’s customers operate, limits concentrations of credit risk with respect to accounts receivable. The Company does not generally require collateral or other security to support customer receivables; however, the Company may require its customers to provide retainers, up-front deposits or irrevocable letters-of-credit when considered necessary to mitigate credit risks. The Company has established an allowance for doubtful accounts based upon facts surrounding the credit risk of specific customers and past collections history. Credit losses have been within management’s expectations. At March 31, 2019 and December 31, 2018, the Company’s allowance for doubtful accounts was $10,088 and $7,427, respectively.
Property and Equipment	Property and Equipment Property, equipment and leasehold improvements are stated at cost less accumulated depreciation and amortization. Depreciation and amortization is computed over the estimated useful lives of the related assets on a straight-line basis. Furniture and fixtures, computer hardware and purchased software are depreciated over three to seven years. Leasehold improvements are amortized over the life of the lease or the asset, whichever is shorter, generally seven to ten years. Upon retirement or other disposition of these assets, the cost and related accumulated depreciation and amortization of these assets are removed from the accounts and the resulting gains and losses are reflected in the results of operations.
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets The Company accounts for the impairment and disposition of long-lived assets in accordance with Accounting Standards Codification (“ASC”) 360, “Property, Plant, and Equipment.” The Company tests long-lived assets or asset groups, such as property and equipment, for recoverability when events or changes in circumstances indicate that their carrying amount may not be recoverable. Circumstances which could trigger a review include, but are not limited to: significant adverse changes in the business climate or legal factors; current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the asset; and a current expectation that the asset will more likely than not be sold or disposed of before the end of its estimated useful life. Recoverability is assessed based on comparing the carrying amount of the asset to the aggregate pre-tax undiscounted cash flows expected to result from the use and eventual disposal of the asset or asset group. Impairment is recognized when the carrying amount is not recoverable and exceeds the fair value of the asset or asset group. The impairment loss, if any, is measured as the amount by which the carrying amount exceeds fair value, which for this purpose is based upon the discounted projected future cash flows of the asset or asset group.
Share-Based Compensation	Share-Based Compensation The Company accounts for stock-based payments to employees in accordance with ASC 718, “Stock Compensation.” Stock-based payments to employees include grants of stock that are recognized in the consolidated statement of operations based on their fair values at the date of grant. The Company accounts for stock-based payments to non-employees in accordance with ASC 718, “Equity-Based Payments to Non-Employees,” which requires that such equity instruments are recorded at their fair value on the grant date. The grant date fair value of stock option awards is recognized in earnings as share-based compensation cost over the requisite service period of the award using the straight-line attribution method. The Company estimates the fair value of the stock option awards using the Black-Scholes-Merton option pricing model. The exercise price of options is specified in the stock option agreements. The expected volatility is based on the historical volatility of the Company’s stock for the previous period equal to the expected term of the options. The expected term of options granted is based on the midpoint between the vesting date and the end of the contractual term. The risk-free interest rate is based upon a U.S. Treasury instrument with a life that is similar to the expected term of the options. The expected dividend yield is based upon the yield expected on date of grant to occur over the term of the option. For the three months ended March 31, 2019, the Company recorded share-based compensation to employees of $86,124 and to non-employees of $57,500. For the three months ended March 31, 2018, the Company recorded share-based compensation to employees of $62,088 and to non-employees of $57,500.
Software Development Costs	Software Development Costs Software development costs for software to be sold or otherwise marketed incurred prior to the establishment of technological feasibility are expensed as incurred. The Company defines establishment of technological feasibility as the completion of a working model. Software development costs incurred subsequent to the establishment of technological feasibility through the period of general market availability of the product are capitalized, if material. To date, all software development costs for software to be sold or otherwise marketed have been expensed as incurred. In accordance with ASC 350-40, “Internal-Use Software,” the Company capitalizes purchase and implementation costs of internal use software. No such costs were capitalized during the periods presented.
Research and Development	Research and Development We design, develop, test, market, license, and support new software products and enhancements of current products. We continuously monitor our software products and enhancements to remain compatible with standard platforms and file formats. We expense our software development costs as incurred. For the three months ending March 31, 2019 and 2018, our research and development costs were $116,088 and $106,445, respectively.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Leases In February 2016, the FASB issued ASU No. 2016-02, Leases (“ASC 842”) (“ASU 2016-02”), which modified lease accounting for both lessees and lessors to increase transparency and comparability by recognizing lease assets and lease liabilities by lessees for those leases classified as operating leases under previous accounting standards and disclosing key information about leasing arrangements. ASU 2016-02 is effective for the Company beginning in its first quarter of 2019. On January 1, 2019, the Company recorded a lease liability of $143,761 and a net right-of-use asset of $138,549 using the required modified retroactive approach. In adopting ASC 842, the Company elected to utilize the available package of practical expedients permitted under the transition guidance within the new standard, which does not require the reassessment of the following: i) whether existing or expired arrangements are or contain a lease, ii) the lease classification of existing or expired leases, and iii) whether previous initial costs would qualify as capitalization under the new lease standard.
Revenue Recognition	Revenue Recognition Effective January 1, 2018, we adopted ASC 606, “Revenue from Contracts with Customers” (“ASC 606”), using the full retrospective transition method. Adoption of the standard using the full retrospective method required us to restate certain previously reported results. In accordance with ASC 606, the Company follows a five-step model to assess each contract of a sale or service to a customer: identify the legally binding contract, identify the performance obligations, determine the transaction price, allocate the transaction price, and determine whether revenue will be recognized at a point in time or over time. Revenue is recognized when a performance obligation is satisfied and the customer obtains control of promised goods and services. The amount of revenue recognized reflects the consideration to which we expect to be entitled to receive in exchange for these goods and services. In addition, ASC 606 requires disclosures of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. We categorize revenue as software, software as a service, software maintenance services, professional services, and third party services. We earn the majority of our revenue from the sale of software as a service and the sale of software maintenance services. Specific revenue recognition policies apply to each category of revenue. a) Sale of software Revenues included in this classification typically include sales of licenses with professional services to new customers, additional software licenses to existing customers, and sales of software with or without services to the Company’s resellers (See section j) - Reseller Agreements, below. Our software licenses are functional intellectual property and typically provide customers with the right to use our software in perpetuity as it exists when made available to the customer. We recognize revenue from software licenses at a point in time upon delivery, provided all other revenue recognition criteria are met. b) Sale of software as a service Sale of software as a service (“SaaS”) consists of revenues from arrangements that provide customers the use of the Company’s software applications, as a service, typically billed on a monthly or annual basis. Advance billings of these services are not recorded to the extent that the term of the arrangement has not commenced and payment has not been received. Revenue on these services is recognized over the contract period. c) Sale of software maintenance services Software maintenance services revenues consist of revenues derived from arrangements that provide post-contract support (“PCS”), including software support and bug fixes, to the Company’s software license holders. Advance billings of PCS are not recorded to the extent that the term of the PCS has not commenced and payment has not been received. PCS is considered distinct services. However, these distinct services are considered a single performance obligation consisting of a series of services that are substantially the same and have the same pattern of transfer to the customer. These revenues are recognized ratably over the term of the maintenance contract. d) Sale of professional services Professional services consist principally of revenues from consulting, advisory services, training and customer assistance with management and uploading of data into the Company’s applications. We recognize professional services revenue over time as the services are delivered using an input method (i.e., labor hours incurred as a percentage of total labor hours budgeted), provided all other revenue recognition criteria are met. e) Sale of third party services Sale of third party services consist principally of third party software and/or equipment as a pass through of software and equipment purchased from third parties at the request of customers. We recognize revenue from third party services at a point in time upon delivery, provided all other revenue recognition criteria are met. In addition, we have considered our relationship with third party vendors as it relates to principal vs. agent considerations and have determined that we are in control of establishing the transaction price for the customer, managing all aspects of the shipments process and taking the risk of loss for delivery, collection, and returns. Based on our evaluation of the control model, we determined that we act as the principal rather than the agent within our revenue arrangements and as such, revenues are reported on a gross basis. f) Arrangements with multiple performance obligations In addition to selling software licenses, software as a service, software maintenance services, professional services, and third party services on a stand-alone basis, a portion of our contracts include multiple performance obligations. For contracts with multiple performance obligations, the Company allocates the transaction price of the contract to each distinct performance obligation, on a relative basis using its standalone selling price. The Company determines the standalone selling price based on the price charged for the deliverable when sold separately. g) Contract balances When the timing of our delivery of goods or services is different from the timing of payments made by customers, we recognize either a contract asset (performance precedes contractual due date) or a contract liability (customer payment precedes performance). Customers that prepay are represented by deferred revenue until the performance obligation is satisfied. Contract assets represent arrangements in which the good or service has been delivered but payment is not yet due. Our contract assets consisted of unbilled receivables, which are included in prepaid expenses and other current assets. Our contract liabilities consisted of deferred (unearned) revenue, which is generally related to software as a service or software maintenance contracts. We classify deferred revenue as current or noncurrent based on the timing of when we expect to recognize revenue. The following table present changes in our contract assets and liabilities during the three months ended March 31, 2019 and 2018: Balance at Beginning of Period Revenue Recognized in Advance of Billings Billings Balance at End of Period Three months ended March 31, 2019 Contract assets: Unbilled receivables $ 65,118 $ 52,847 $ (65,118 ) $ 52,847 Three months ended March 31, 2018 Contract assets: Unbilled receivables $ 89,847 $ 78,589 $ (89,847 ) $ 78,589 Balance at Beginning of Period Billings Recognized Revenue Balance at End of Period Three months ended March 31, 2019 Contract liabilities: Deferred revenue $ 723,619 $ 425,905 $ (497,663 ) $ 651,861 Three months ended March 31, 2018 Contract liabilities: Deferred revenue $ 708,130 $ 386,040 $ (489,417 ) $ 604,753 h) Remaining performance obligations Remaining performance obligations represent the transaction price from contracts for which work has not been performed or goods and services have not been delivered. We expect to recognize revenue on approximately 87% of the remaining performance obligations over the next 12 months, with the remainder recognized thereafter. As of March 31, 2019, the aggregate amount of the transaction price allocated to remaining performance obligations for software as a service and software maintenance contracts with a duration greater than one year was $95,845. This does not include revenue related to performance obligations that are part of a contract whose original expected duration is one year or less. i) Rights of return and customer acceptance The Company does not generally offer variable consideration, financing components, rights of return or any other incentives such as concessions, product rotation, or price protection and, therefore, does not provide for or make estimates of rights of return and similar incentives. Our contracts with customers generally do not include customer acceptance clauses. j) Reseller agreements The Company executes certain sales contracts through resellers. The Company recognizes revenues relating to sales through resellers on the sell-in method when all the recognition criteria have been met including passing of control. In addition, the Company assesses the credit-worthiness of each reseller, and if the reseller is undercapitalized or in financial difficulty, any revenues expected to emanate from such resellers are deferred and recognized only when cash is received and all other revenue recognition criteria are met. k) Contract costs The Company recognizes capitalizes for the incremental costs of obtaining a contract with a customer. We have determined that certain sales commissions meet the requirement to be capitalized, and we amortize these costs on a consistent basis with the pattern of transfer of the goods and services in the contract. Total capitalized costs to obtain contracts were immaterial during the periods presented and are included in other current and long-term assets on our consolidated balance sheets. l) Sales taxes Sales taxes charged to and collected from customers as part of the Company’s sales transactions are excluded from revenues, as well as the determination of transaction price for contracts with multiple performance obligations, and recorded as a liability to the applicable governmental taxing authority.
Advertising	Advertising The Company expenses the cost of advertising as incurred. Advertising expense for the three months ended March 31, 2019 and 2018 amounted to $1,028 and $3,501, respectively.
Earnings (Loss) Per Share	Earnings (Loss) Per Share Basic earnings per share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period. The Company has outstanding stock options which have not been included in the calculation of diluted net loss per share because to do so would be anti-dilutive. As such, the numerator and the denominator used in computing both basic and diluted net loss per share for each period are the same.
Income Taxes	Income Taxes The Company and its subsidiary file a consolidated federal income tax return. The provision for income taxes is computed by applying statutory rates to income before taxes. Deferred income taxes are recognized for the tax consequences in future years of temporary differences between the financial reporting and tax bases of assets and liabilities as of each period-end based on enacted tax laws and statutory rates. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. A 100% valuation allowance has been established on deferred tax assets at March 31, 2019 and December 31, 2018, due to the uncertainty of our ability to realize future taxable income. The Company accounts for uncertainty in income taxes in its financial statements as required under ASC 740,. The standard prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The standard also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition accounting. Management determined there were no material uncertain positions taken by the Company in its tax returns.
Statement of Cash Flows	Statement of Cash Flows For purposes of reporting cash flows, cash includes cash on hand and demand deposits held by banks.
Reclassifications	Reclassifications Certain amounts in the 2018 consolidated financial statements have been reclassified to conform to current year presentation.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2019
Accounting Policies [Abstract]
Schedule of Changes in Contract Assets and Liabilities	The following table present changes in our contract assets and liabilities during the three months ended March 31, 2019 and 2018: Balance at Beginning of Period Revenue Recognized in Advance of Billings Billings Balance at End of Period Three months ended March 31, 2019 Contract assets: Unbilled receivables $ 65,118 $ 52,847 $ (65,118 ) $ 52,847 Three months ended March 31, 2018 Contract assets: Unbilled receivables $ 89,847 $ 78,589 $ (89,847 ) $ 78,589 Balance at Beginning of Period Billings Recognized Revenue Balance at End of Period Three months ended March 31, 2019 Contract liabilities: Deferred revenue $ 723,619 $ 425,905 $ (497,663 ) $ 651,861 Three months ended March 31, 2018 Contract liabilities: Deferred revenue $ 708,130 $ 386,040 $ (489,417 ) $ 604,753

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2019
Fair Value Disclosures [Abstract]
Summary of Notes Payable	The table below reflects all notes payable at March 31, 2019 and December 31, 2018, respectively. March 31, 2019 December 31, 2018 Fair Value Fair Value 2016 Unrelated Notes (a) $ 998,355 $ 1,000,261 2017 Unrelated Notes (a) 2,234,736 2,275,686 2018 Unrelated Notes (b) 1,142,763 900,000 Total $ 4,375,854 $ 4,175,947 March 31, 2019 December 31, 2018 Fair Value Fair Value The $250,000 Shealy Note (c) $ 35,552 $ 46,807 2016 Related Notes (a) 431,677 433,117 2017 Related Notes (a) 495,197 504,271 2018 Related Notes (b) 507,894 400,000 Total $ 1,434,769 $ 1,384,195 (a) The fair value was based upon Level 2 inputs. See Note 8 for additional information about the Company’s 2016 and 2017 Unrelated Notes. See Note 9 for additional information about the Company’s 2016 and 2017 Related Notes. (b) The fair value was based upon Level 2 inputs as of March 31, 2019. The 2018 Unrelated and Related Notes were closed in September 2018 between market participants, therefore, given proximity of the transactions to year-end, fair value approximated carrying value at December 31, 2018. See Note 8 for additional information about the Company’s 2018 Unrelated Notes. See Note 9 for additional information about the Company’s 2016 and 2017 Related Notes. (c) The fair value was based upon Level 2 inputs. Short term maturity and interest rate approximates rate that the Company realized with issuance of new debt in September 2018; therefore, carrying value approximates fair value. See Note 9 for additional information about the Company’s $250,000 Shealy Note.

Property and Equipment (Tables)

Property and Equipment (Tables)	3 Months Ended
	Mar. 31, 2019
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment	Property and equipment are comprised of the following: March 31, 2019 December 31, 2018 Computer hardware and purchased software $ 254,470 $ 254,470 Leasehold improvements 221,666 221,666 Furniture and fixtures 82,056 82,722 558,192 558,192 Less: accumulated depreciation and amortization (550,970 ) (549,061 ) Property and equipment, net $ 7,222 $ 9,131

Notes Payable (Tables)

Notes Payable (Tables)	3 Months Ended
	Mar. 31, 2019
Debt Disclosure [Abstract]
Schedule of Notes Payable	The table below reflects all notes payable at March 31, 2019 and December 31, 2018, respectively, with the exception of related party notes disclosed in Note 9 - Notes Payable - Related Parties. March 31, 2019 December 31, 2018 2016 Unrelated Notes, net of beneficial conversion feature of $88,730 and $101,405, respectively $ 786,270 $ 773,595 2017 Unrelated Notes 1,760,000 1,760,000 2018 Unrelated Notes 900,000 900,000 Total notes payable $ 3,446,270 $ 3,433,595 Less unamortized debt issuance costs (252,585 ) (288,669 ) Long-term portion of notes payable $ 3,193,685 $ 3,144,926
Schedule of Future Minimum Principal Payments of Notes Payable	Future minimum principal payments of these notes payable with the exception of the related party notes in Note 9 - Notes Payable - Related Parties, as described in this Note 8 are as follows: For the Twelve Months Ending March 31, Amount 2021 $ 3,535,000 Total $ 3,535,000

Notes Payable - Related Parti_2

Notes Payable - Related Parties (Tables)	3 Months Ended
	Mar. 31, 2019
Related Party Transactions [Abstract]
Schedule of Notes Payable Due to Related Parties	The table below reflects Notes payable due to related parties at March 31, 2019 and December 31, 2018, respectively: March 31, 2019 December 31, 2018 The $250,000 Shealy Note 35,552 46,807 2016 Related Notes, net of beneficial conversion feature of $35,026 and $40,030, respectively 339,974 334,970 2017 Related Notes 390,000 390,000 2018 Related Notes 400,000 400,000 Total notes payable - related party $ 1,165,526 $ 1,171,777 Unamortized debt issuance costs (69,154 ) (79,033 ) Less current portion (35,552 ) (46,807 ) Long-term portion of notes payable-related party $ 1,060,820 $ 1,045,937
Schedule of Future Minimum Principal Payments of Notes Payable Related Party	Future minimum principal payments of these notes payable as described in this Note 9 are as follows: For the Twelve Months Ending March 31, Amount 2020 $ 35,552 2021 1,165,000 TOTAL $ 1,200,552

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Schedule of Future Minimum Rental Payments for Operating Leases	Future minimum lease payments under this operating lease are as follows: For the Twelve Months Ending March 31, Amount 2020 $ 53,316 2021 54,630 2022 41,742 $ 149,688
Schedule of Operating Lease Costs	Lease costs charged to operations for the three months ended March 31, 2019 and 2018 amounted to $12,814. Additional information pertaining to the Company’s lease are as follows: For the Three Months Ending March 31, 2019: Operating cash flows from operating leases $ 10,761 Weighted average remaining lease term – operating leases 2.8 years Weighted average discount rate – operating leases 8.0 %

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2019
Equity [Abstract]
Schedule of Estimated Values of Warrants Valuation Assumptions	The estimated values of warrants, as well as the assumptions that were used in calculating such values were based on estimates at the issuance date as follows: Placement Agent December 30, 2016 Bridge Noteholders September 21, 2017 Risk-free interest rate 1.93 % 1.89 % Weighted average expected term 5 years 5 years Expected volatility 123.07 % 130.80 % Expected dividend yield 0.00 % 0.00 % Placement Agent November 17, 2017 Placement Agent November 30, 2017 Risk-free interest rate 2.06 % 2.14 % Weighted average expected term 5 years 5 years Expected volatility 129.87 % 129.34 % Expected dividend yield 0.00 % 0.00 % Placement Agent September 20, 2018 Placement Agent September 26, 2018 Risk-free interest rate 2.96 % 2.96 % Weighted average expected term 5 years 5 years Expected volatility 122.52 % 122.92 % Expected dividend yield 0.00 % 0.00 %

Share-Based Compensation (Table

Share-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2019
Share-based Payment Arrangement [Abstract]
Schedule of Estimated Values of Stock Option Grants Valuation Assumptions	The weighted average estimated values of director and employee stock option grants, as well as the weighted average assumptions that were used in calculating such values during the three months ended March 31, 2019 and 2018, were based on estimates at the date of grant as follows: April 30, January 1, February 10, 2015 Grant 2016 Grant 2016 Grant Risk-free interest rate 1.43 % 1.76 % 1.15 % Weighted average expected term 5 years 5 years 5 years Expected volatility 143.10 % 134.18 % 132.97 % Expected dividend yield 0.00 % 0.00 % 0.00 % December 6, March 15, September 25, 2016 Grant 2017 Grant 2017 Grant Risk-free interest rate 1.84 % 2.14 % 1.85 % Weighted average expected term 5 years 5 years 5 years Expected volatility 123.82 % 121.19 % 130.79 % Expected dividend yield 0.00 % 0.00 % 0.00 % January 30, March 11, 2019 Grant 2019 Grant Risk-free interest rate 2.54 % 2.44 % Weighted average expected term 5 years 5 years Expected volatility 115.80 % 116.46 % Expected dividend yield 0.00 % 0.00 %
Schedule of Stock Option Activity	A summary of stock option activity during the three months ended March 31, 2019 under our stock option agreements is as follows: Weighted- Weighted- Average Shares Average Remaining Aggregate Under Exercise Contractual Intrinsic Option Price Life Value Outstanding at January 1, 2019 2,238,000 $ 0.55 8 years 79,200 Granted 2,177,500 0.13 Forfeited and expired (1,672,500 ) 0.86 Outstanding at March 31, 2019 2,743,000 $ 0.26 9 years $ 79,200 Exercisable at March 31, 2019 1,835,500 $ 0.33 9 years $ 79,200

Liquidity and Management's Pl_2

Liquidity and Management's Plans (Details Narrative) - USD ($)	Mar. 31, 2019	Dec. 31, 2018	Mar. 31, 2018	Dec. 31, 2017
Liquidity And Managements Plans
Accumulated deficit	$ 19,332,638	$ 18,662,785
Cash	$ 788,952	$ 1,088,630	$ 710,088	$ 1,125,921

Corporate Actions (Details Narr

Corporate Actions (Details Narrative)	Sep. 01, 2014
Deferred Interest Expense
Reverse stock split	(1-for-7) reverse stock split

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details Narrative) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018	Jan. 02, 2019
Allowance for doubtful accounts receivable	$ 10,088		$ 7,427
Research and development expense	116,088	$ 106,445
Operating lease, lease liability				$ 143,761
Operating lease, right-of-use asset	$ 128,221			$ 138,549
Revenue performance obligations percentage	87.00%
Revenue performance obligations amount	$ 95,845
Advertising expense	$ 1,028	3,501
Percentage of valuation allowance established on deferred tax assets	100.00%		100.00%
Employees [Member]
Share-based compensation	$ 86,124	62,088
Non-Employees [Member]
Share-based compensation	$ 57,500	$ 57,500
Furniture and Fixtures [Member] | Minimum [Member]
Property, plant and equipment, useful life	3 years
Furniture and Fixtures [Member] | Maximum [Member]
Property, plant and equipment, useful life	7 years
Computer Hardware and Purchased Software [Member] | Minimum [Member]
Property, plant and equipment, useful life	3 years
Computer Hardware and Purchased Software [Member] | Maximum [Member]
Property, plant and equipment, useful life	7 years
Leasehold Improvements [Member] | Minimum [Member]
Property, plant and equipment, useful life	7 years
Leasehold Improvements [Member] | Maximum [Member]
Property, plant and equipment, useful life	10 years

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Schedule of Changes in Contract Assets and Liabilities (Details) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Accounting Policies [Abstract]
Unbilled receivables, balance at beginning of period	$ 65,118	$ 89,847
Unbilled receivables, revenue recognized in advance of billings	52,847	78,589
Unbilled receivables, billings	(65,118)	(89,847)
Unbilled receivables, balance at end of period	52,847	78,589
Deferred revenue, balance at beginning of period	723,619	708,130
Deferred revenue, billings	425,905	386,040
Deferred revenue, recognized revenue	(497,663)	(489,417)
Deferred revenue, balance at end of period	$ 651,861	$ 604,753

Fair Value Measurements - Summa

Fair Value Measurements - Summary of Notes Payable (Details) - USD ($)		Mar. 31, 2019	Dec. 31, 2018
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Notes Payable, Fair Value		$ 4,375,854	$ 4,175,947
Related Parties [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Notes payable related parties, Fair Value		1,434,769	1,384,195
2016 Unrelated Notes [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Notes Payable, Fair Value	[1]	998,355	1,000,261
2017 Unrelated Notes [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Notes Payable, Fair Value	[1]	2,234,736	2,275,686
2018 Unrelated Notes [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Notes Payable, Fair Value	[2]	1,142,763	900,000
Shealy Note [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Notes payable related parties, Fair Value	[3]	35,552	46,807
2016 Related Notes [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Notes payable related parties, Fair Value	[1]	431,677	433,117
2017 Related Notes [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Notes payable related parties, Fair Value	[1]	495,197	504,271
2018 Related Notes [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Notes payable related parties, Fair Value	[2]	$ 507,894	$ 400,000
[1]	The fair value was based upon Level 2 inputs. See Note 8 for additional information about the Company's 2016 and 2017 Unrelated Notes. See Note 9 for additional information about the Company's 2016 and 2017 Related Notes.
[2]	The fair value was based upon Level 2 inputs as of March 31, 2019. The 2018 Unrelated and Related Notes were closed in September 2018 between market participants, therefore, given proximity of the transactions to year-end, fair value approximated carrying value at December 31, 2018. See Note 8 for additional information about the Company's 2018 Unrelated Notes. See Note 9 for additional information about the Company's 2016 and 2017 Related Notes.
[3]	The fair value was based upon Level 2 inputs. Short term maturity and interest rate approximates rate that the Company realized with issuance of new debt in September 2018; therefore, carrying value approximates fair value. See Note 9 for additional information about the Company's $250,000 Shealy Note.

Fair Value Measurements - Sum_2

Fair Value Measurements - Summary of Notes Payable (Details) (Parenthetical) - Shealy Note [Member] - USD ($)	Mar. 31, 2019	Dec. 31, 2018	Mar. 31, 2018
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Notes payable due to related parties	$ 250,000	$ 250,000
Related Parties [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Notes payable due to related parties	$ 250,000		$ 250,000

Property and Equipment (Details

Property and Equipment (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Property, Plant and Equipment [Abstract]
Depreciation and amortization expense on property and equipment	$ 1,909	$ 2,194

Property and Equipment - Schedu

Property and Equipment - Schedule of Property and Equipment (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Property, Plant and Equipment [Abstract]
Computer hardware and purchased software	$ 254,470	$ 254,470
Leasehold improvements	221,666	221,666
Furniture and fixtures	82,056	82,722
Property and equipment, gross	558,192	558,192
Less: accumulated depreciation and amortization	(550,970)	(549,061)
Property and equipment, net	$ 7,222	$ 9,131

Notes Payable (Details Narrativ

Notes Payable (Details Narrative) - USD ($)

Sep. 26, 2018

Sep. 20, 2018

Sep. 17, 2018

Sep. 14, 2018

Nov. 30, 2017

Nov. 17, 2017

Mar. 31, 2019

Mar. 31, 2018

Dec. 31, 2018

Jan. 31, 2017

Jan. 06, 2017

Dec. 30, 2016

Accrued interest

$ 507,301

$ 379,339

Deferred finance costs, net

252,585

$ 288,669

Notes Payable, Other Payables [Member]

Debt instrument, convertible, beneficial conversion feature

$ 176,721

$ 161,392

2016 Unrelated Accredited Investors [Member]

Convertible promissory notes

$ 560,000

$ 560,000

Convertible Promissory Notes [Member]

Debt instrument, bearing interest percentage

10.00%

Percentage of interest payable quarterly

5.00%

Debt instrument, maturity date

Dec. 31, 2020

Dec. 31, 2020

Debt conversion price per share

$ 0.40

Convertible Promissory Notes [Member] | 2016 Unrelated Accredited Investors [Member]

Convertible promissory notes

$ 315,000

Debt instrument, bearing interest percentage

12.00%

Percentage of interest payable quarterly

6.00%

Debt instrument, maturity date

Dec. 31, 2018

Debt conversion price per share

$ 0.65

Debt instrument, interest rate description

If the notes have not been fully repaid by the Company by the maturity date or converted into shares at the election of the note investors prior to maturity, then such notes will accrue interest at the annual rate of 12% from the maturity date until the date the notes are repaid in full. Any interest not paid quarterly will also accrue interest at the annual rate of 7% instead of 5%.

Debt instrument, convertible, beneficial conversion feature

$ 369,677

Fair value adjustment under troubled debt restructuring accounting

56,661

Interest expense, debt

12,675

$ 46,209

Convertible Promissory Notes [Member] | 2016 Unrelated Accredited Investors [Member] | Placement Agent and Escrow Agent [Member]

Fee expense

$ 100,255

Convertible Promissory Notes [Member] | 2017 Unrelated Accredited Investors [Member]

Convertible promissory notes

$ 1,760,000

$ 1,760,000

Debt instrument, bearing interest percentage

8.00%

8.00%

Percentage of interest payable quarterly

8.00%

8.00%

Debt instrument, maturity date

Nov. 30, 2019

Nov. 30, 2019

Debt conversion price per share

$ 0.20

$ 0.20

Debt instrument, interest rate description

If the notes have not been fully repaid by the Company by the maturity date or converted into shares at the election of the note investors prior to maturity, then such notes will accrue interest at the annual rate of 12% from the maturity date until the date the notes are repaid in full.

If the notes have not been fully repaid by the Company by the maturity date or converted into shares at the election of the note investors prior to maturity, then such notes will accrue interest at the annual rate of 12% from the maturity date until the date the notes are repaid in full.

Convertible Promissory Notes [Member] | 2017 Unrelated Accredited Investors [Member] | Placement Agent and Escrow Agent [Member]

Fee expense

$ 174,810

$ 174,810

Convertible Promissory Notes [Member] | 2018 Unrelated Accredited Investors [Member]

Convertible promissory notes

$ 900,000

$ 900,000

Debt instrument, bearing interest percentage

8.00%

8.00%

Percentage of interest payable quarterly

8.00%

8.00%

Debt instrument, maturity date

Dec. 31, 2020

Dec. 31, 2020

Debt conversion price per share

$ 0.13

$ 0.13

Debt instrument, interest rate description

If the notes have not been fully repaid by the Company by the maturity date or converted into shares at the election of the note investors prior to maturity, then such notes will accrue interest at the annual rate of 12% from the maturity date until the date the notes are repaid in full.

If the notes have not been fully repaid by the Company by the maturity date or converted into shares at the election of the note investors prior to maturity, then such notes will accrue interest at the annual rate of 12% from the maturity date until the date the notes are repaid in full.

Convertible Promissory Notes [Member] | 2018 Unrelated Accredited Investors [Member] | Placement Agent and Escrow Agent [Member]

Fee expense

$ 106,740

$ 106,740

Notes Payable - Schedule of Not

Notes Payable - Schedule of Notes Payable (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Total notes payable	$ 3,446,270	$ 3,433,595
Less unamortized debt issuance costs	(252,585)	(288,669)
Long-term portion of notes payable	3,193,685	3,144,926
2016 Unrelated Notes [Member]
Total notes payable	786,270	773,595
2017 Unrelated Notes [Member]
Total notes payable	1,760,000	1,760,000
2018 Unrelated Notes [Member]
Total notes payable	$ 900,000	$ 900,000

Notes Payable - Schedule of N_2

Notes Payable - Schedule of Notes Payable (Details) (Parenthetical) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
2016 Unrelated Notes [Member]
Beneficial conversion feature	$ 88,730	$ 101,405

Notes Payable - Schedule of Fu

Notes Payable - Schedule of Future Minimum Principal Payments of Notes Payable (Details)	Mar. 31, 2019USD ($)
Debt Disclosure [Abstract]
2021	$ 3,535,000
Total	$ 3,535,000

Notes Payable - Related Parti_3

Notes Payable - Related Parties (Details Narrative)

Sep. 26, 2018USD ($)$ / shares

Sep. 17, 2018$ / shares

Sep. 14, 2018

Nov. 30, 2017USD ($)

Nov. 17, 2017USD ($)$ / shares

Sep. 21, 2017USD ($)$ / sharesshares

Dec. 30, 2016USD ($)$ / shares

Jan. 31, 2015Installment

Dec. 31, 2014USD ($)

Dec. 24, 2013USD ($)

Mar. 13, 2013USD ($)

Nov. 24, 2012USD ($)

Apr. 16, 2012USD ($)

Mar. 29, 2012USD ($)

Mar. 31, 2019USD ($)

Mar. 31, 2018USD ($)

Dec. 31, 2017USD ($)

Dec. 31, 2018USD ($)

Notes payable, related parties

$ 35,552

$ 46,807

Interest expenses of notes payable in related parties

56,426

$ 47,592

Related Parties [Member]

Notes payable, related parties

1,165,526

1,171,777

Accrued interest

163,423

$ 122,956

2017 Bridge Notes [Member]

Principal amount of note converted

$ 150,000

Mr. Ramon Shealy [Member]

Debt instrument, maturity date

Jan. 1, 2020

Repayments of debt

$ 193,453

Number of installments | Installment

60

Robert and Michael Taglich [Member] | 2017 Bridge Note [Member]

Debt beneficial interest rate

5.00%

Debt instrument, original issue discount

$ 38,837

Warrant exercise price | $ / shares

$ 0.30

James DeSocio [Member] | 2017 Bridge Note [Member]

Debt instrument, maturity date

Dec. 31, 2020

Nov. 30, 2019

Maximum aggregate principal amount

$ 240,000

Debt instrument convertible, beneficial conversion feature

150,000

Unsecured Promissory Note Payable [Member] | Mr. Ramon Shealy [Member]

Notes payable, related parties

$ 12,000

$ 238,000

Long-term debt, percentage bearing fixed interest, percentage rate

10.00%

10.00%

Debt instrument, maturity date

Jul. 15, 2012

Sep. 27, 2012

Debt instrument maturity date extension

Nov. 24, 2012

Nov. 24, 2012

Promissory Note Payable [Member] | Mr. Ramon Shealy [Member]

Debt instrument, maturity date

Jan. 1, 2015

Jan. 1, 2014

Combined promissory note face amount

$ 250,000

$ 250,000

$ 250,000

Repayments of debt

$ 100,000

Convertible Promissory Notes Payable [Member] | 2016 Related Notes [Member] | Accredited Investors [Member]

Maximum aggregate principal amount

$ 375,000

Debt beneficial interest rate

5.00%

Debt instrument interest rate, stated percentage

12.00%

Debt instrument, interest rate description

If the notes have not been fully repaid by the Company by the maturity date or converted into shares at the election of the note investors prior to the maturity date, then such notes will accrue interest at the annual rate of 12% from the maturity date until the date the notes are repaid in full. Any interest not paid quarterly will also accrue interest at the annual rate of 7% instead of 5%.

Debt instrument convertible, beneficial conversion feature

$ 144,231

Fair value adjustment under troubled debt restructuring accounting

$ 24,710

Interest expense, debt

$ 5,004

$ 18,029

Convertible Promissory Notes Payable [Member] | 2016 Bridge Notes [Member] | Accredited Investors [Member]

Debt instrument, maturity date

Dec. 31, 2020

Dec. 31, 2018

Debt instrument interest rate, stated percentage

10.00%

12.00%

Percentage of interest payable quarterly

5.00%

6.00%

Debt instrument, convertible, conversion price | $ / shares

$ 0.40

$ 0.65

Convertible Promissory Notes Payable [Member] | 2017 Bridge Notes [Member]

Debt beneficial interest rate

12.00%

Debt instrument, interest rate description

Any interest not paid at maturity will also accrue interest at the annual rate of 12% instead of 8%.

Number of warrants issued in connection with note | shares

150,000

Warrant exercise price | $ / shares

$ 0.30

Warrants exercisable term

5 years

Convertible Promissory Notes Payable [Member] | 2017 Related Notes [Member] | Accredited Investors [Member]

Maximum aggregate principal amount

$ 390,000

Debt beneficial interest rate

5.00%

Debt instrument interest rate, stated percentage

12.00%

Debt instrument, convertible, conversion price | $ / shares

$ 0.20

Debt instrument, interest rate description

The notes bear interest at an annual rate of interest of 8% until maturity, with interest of 8% payable quarterly beginning July 1, 2018

Convertible Promissory Notes Payable [Member] | 2018 Related Notes [Member] | Accredited Investors [Member]

Debt instrument, maturity date

Dec. 31, 2020

Maximum aggregate principal amount

$ 400,000

Debt beneficial interest rate

5.00%

Debt instrument interest rate, stated percentage

12.00%

Percentage of interest payable quarterly

8.00%

Debt instrument, convertible, conversion price | $ / shares

$ 0.13

Debt instrument, interest rate description

The notes mature on December 31, 2020, and bear interest at an annual rate of interest of 8% until maturity, with interest of 8% payable quarterly beginning January 2, 2019

Convertible Promissory Notes Payable [Member] | Robert and Michael Taglich [Member] | 2017 Bridge Notes [Member]

Debt instrument, maturity date

Sep. 21, 2018

Maximum aggregate principal amount

$ 154,640

Debt beneficial interest rate

5.00%

Debt instrument interest rate, stated percentage

8.00%

Interest expense, debt

$ 889

Debt instrument, original issue discount

$ 4,640

Debt instrument, interest rate, effective percentage

7.00%

Amortization of debt discount

$ 38,836

Notes Payable - Related Parti_4

Notes Payable - Related Parties - Schedule of Notes Payable Due to Related Parties (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Total notes payable - related party	$ 35,552	$ 46,807
Unamortized debt issuance costs	(252,585)	(288,669)
Less current portion	(35,552)	(46,807)
Long-term portion of notes payable-related party	1,060,820	1,045,937
Related Parties [Member]
Total notes payable - related party	1,165,526	1,171,777
Unamortized debt issuance costs	(69,154)	(79,033)
Less current portion	(35,552)	(46,807)
Long-term portion of notes payable-related party	1,060,820	1,045,937
Shealy Note [Member]
Total notes payable - related party	35,552	46,807
2016 Related Notes [Member]
Total notes payable - related party	339,974	334,970
2017 Related Notes [Member]
Total notes payable - related party	390,000	390,000
2018 Related Notes [Member]
Total notes payable - related party	$ 400,000	$ 400,000

Notes Payable - Related Parti_5

Notes Payable - Related Parties - Schedule of Notes Payable Due to Related Parties (Details) (Parenthetical) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2019	Dec. 31, 2018	Mar. 31, 2018
Shealy Note [Member]
Notes payable due to related parties	$ 250,000		$ 250,000
Shealy Note [Member] | Related Parties [Member]
Notes payable due to related parties	250,000			$ 250,000
2016 Unrelated Notes [Member]
Beneficial conversion feature	88,730		$ 101,405
2016 Unrelated Notes [Member] | Related Parties [Member]
Beneficial conversion feature	$ 35,026	$ 40,030

Notes Payable - Related Parti_6

Notes Payable - Related Parties - Schedule of Future Minimum Principal Payments of Notes Payable Related Party (Details)	Mar. 31, 2019USD ($)
2021	$ 3,535,000
TOTAL	3,535,000
Notes Payable [Member]
2020	35,552
2021	1,165,000
TOTAL	$ 1,200,552

Deferred Compensation (Details

Deferred Compensation (Details Narrative)	Dec. 08, 2017USD ($)Payments	Mar. 31, 2019USD ($)	Mar. 31, 2018USD ($)	Dec. 31, 2018USD ($)
Deferred compensation liability, noncurrent		$ 154,089		$ 165,166
Decrease in deferred compensation		$ 11,077	$ 11,077
A. Michael Chretien [Member]
Bi-weekly payments of deferred compensation	$ 1,846
Number of payments | Payments	61
A. Michael Chretien [Member] | One Partial Payment [Member]
Bi-weekly payments of deferred compensation	$ 1,569

Commitments and Contingencies_2

Commitments and Contingencies (Details Narrative)	Jan. 02, 2010ft²	Mar. 31, 2019USD ($)	Mar. 31, 2018USD ($)
Commitments and Contingencies Disclosure [Abstract]
Area of rental square feet of office space | ft²	6,000
Lease commenced date	Jan. 1, 2010
Lease expiration date	Dec. 31, 2021
Lease extension date, description	Lease extension dated August 9, 2016
Operating leases rent expense, net | $		$ 12,814	$ 12,814

Commitments and Contingencies -

Commitments and Contingencies - Schedule of Future Minimum Rental Payments for Operating Leases (Details)	Mar. 31, 2019USD ($)
Commitments and Contingencies Disclosure [Abstract]
2020	$ 53,316
2021	54,630
2022	41,742
Future minimum lease payments under operating lease	$ 149,688

Commitments and Contingencies_3

Commitments and Contingencies - Schedule of Operating Lease Costs (Details)	3 Months Ended
	Mar. 31, 2019USD ($)
Commitments And Contingencies - Schedule Of Operating Lease Costs
Operating cash flows from operating leases	$ 10,761
Weighted average remaining lease term – operating leases	2 years 9 months 18 days
Weighted average discount rate – operating leases	8.00%

Stockholders' Equity (Details N

Stockholders' Equity (Details Narrative) - USD ($)	Jan. 07, 2019	Sep. 26, 2018	Sep. 20, 2018	Jan. 05, 2018	Nov. 30, 2017	Nov. 17, 2017	Sep. 21, 2017	Nov. 30, 2017	Jan. 31, 2017	Jan. 30, 2017	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Common stock, shares authorized, shares											75,000,000		75,000,000
Common stock, par or stated value per share											$ 0.001		$ 0.001
Common stock voting rights											The holders of the Company's common stock are entitled to one (1) vote per share.
Debt issuance cost											$ 252,585		$ 288,669
Amortization of the debt issuance costs											$ 45,963	$ 62,216
Common stock, shares issued											18,524,878		17,729,421
Common stock, shares outstanding											18,524,878		17,729,421
2015 Equity Incentive Plan [Member]
Common stock, capital shares reserved for future issuance											3,366,506
Exercise of Warrants [Member]
Common stock, capital shares reserved for future issuance											6,726,625
Convertible Note Offering [Member] | Warrant [Member]
Underwriting expenses									$ 52,951
Number of warrants issued									68,923
Fair value of warrant issued, per share									$ 0.77
Convertible Note Offering [Member] | Warrant [Member] | Placement Agent [Member]
Payment made to placement agent									$ 100,000
Warrants issued to purchase of common stock, shares									153,846
Class of warrant or right, exercise price of warrants or rights									$ 0.75
Warrant expiration term									5 years
Placement agent warrant issued during period									84,923
Underwriting expenses									$ 65,243
November 2017 Convertible Note Offering [Member] | Warrant [Member] | Placement Agent [Member]
Payment made to placement agent						$ 172,000
Warrants issued to purchase of common stock, shares					506,000	354,000		506,000
Class of warrant or right, exercise price of warrants or rights					$ 0.25	$ 0.25		$ 0.25
Warrant expiration term					5 years	5 years
Fair value of warrant issued, per share					$ 0.13	$ 0.17		$ 0.13
Debt issuance cost					$ 126,603	$ 126,603		$ 126,603
Amortization of the debt issuance costs											$ 22,089	36,670
September 2018 Convertible Note Offering [Member] | Warrant [Member] | Placement Agent [Member]
Payment made to placement agent		$ 64,000	$ 40,000
Warrants issued to purchase of common stock, shares		492,308	307,692
Class of warrant or right, exercise price of warrants or rights		$ 0.18	$ 0.13
Warrant expiration term		5 years	5 years
Fair value of warrant issued, per share		$ 0.07	$ 0.10
Debt issuance cost		$ 64,348	$ 64,348
Amortization of the debt issuance costs											$ 21,688
Convertible Debt [Member]
Common stock, capital shares reserved for future issuance											26,244,672
Accredited Investors [Member] | Convertible Note Offering [Member]
Convertible promissory note										$ 1,250,000
Percentage of placement agent commission on gross proceeds										8.00%
Accredited Investors [Member] | November 2017 Convertible Note Offering [Member]
Convertible promissory note					$ 2,150,000			$ 2,150,000
Percentage of placement agent commission on gross proceeds								8.00%
Accredited Investors [Member] | September 2018 Convertible Note Offering [Member]
Convertible promissory note		$ 1,300,000
Percentage of placement agent commission on gross proceeds		8.00%
Directors [Member]
Shares issued for restricted common stock	522,729			302,629
Stock compensation											$ 57,500	$ 57,500
Employee [Member]
Shares issued for restricted common stock	272,728
Stock compensation	$ 30,000
Robert and Michael Taglich [Member] | 2017 Bridge Note [Member]
Warrants issued to purchase of common stock, shares							150,000
Class of warrant or right, exercise price of warrants or rights							$ 0.30
Warrant expiration term							5 years
Fair value of warrant issued, per share							$ 0.26
Debt beneficial interest rate							5.00%
Debt discount							$ 38,837

Stockholders' Equity - Schedule

Stockholders' Equity - Schedule of Estimated Values of Warrants Valuation Assumptions (Details) - Warrant [Member]	3 Months Ended
	Mar. 31, 2019
Bridge Noteholders September 21, 2017 [Member]
Risk-free interest rate	1.89%
Weighted average expected term	5 years
Expected volatility	130.80%
Expected dividend yield	0.00%
Placement Agent December 30, 2016 [Member]
Risk-free interest rate	1.93%
Weighted average expected term	5 years
Expected volatility	123.07%
Expected dividend yield	0.00%
Placement Agent November 17, 2017 [Member]
Risk-free interest rate	2.06%
Weighted average expected term	5 years
Expected volatility	129.87%
Expected dividend yield	0.00%
Placement Agent November 30, 2017 [Member]
Risk-free interest rate	2.14%
Weighted average expected term	5 years
Expected volatility	129.34%
Expected dividend yield	0.00%
Placement Agent September 20, 2018 [Member]
Risk-free interest rate	2.96%
Weighted average expected term	5 years
Expected volatility	122.52%
Expected dividend yield	0.00%
Placement Agent September 26, 2018 [Member]
Risk-free interest rate	2.96%
Weighted average expected term	5 years
Expected volatility	122.92%
Expected dividend yield	0.00%

Share-Based Compensation (Detai

Share-Based Compensation (Details Narrative) - USD ($)	Mar. 11, 2019	Jan. 30, 2019	Sep. 25, 2017	Mar. 15, 2017	Dec. 06, 2016	Feb. 10, 2016	Jan. 02, 2016	Apr. 30, 2015	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2018
Share-based compensation options, number of options granted									2,177,500	1,350,000
Share-based compensation options, outstanding, exercise price									$ 0.26			$ 0.55
Share-based compensation options vested, fair value									$ 77,660	$ 112,662
Share-based compensation, options, grants in period, weighted average grant date fair value									$ 0.09
Employee service share-based compensation, unrecognized, stock options									$ 179,951			$ 185,754
Employee service share-based compensation, unrecognized compensation not yet recognized, period									1 year
2015 Plan [Member]
Share-based compensation options, number of options granted			500,000
Share-based compensation options, outstanding, exercise price	$ 0.13		$ 0.38
Employees stock options vesting period, description	Vesting period through December 2020		vesting continuing until 2019
Share-based compensation options vested, fair value	$ 24,898		$ 321,011
Number of shares canceled stock options	1,660,000
2015 Plan [Member] | Employee Stock Option [Member]
Share-based compensation options, number of options granted	505,000	12,500	750,000	100,000	100,000	210,000	250,000
Share-based compensation options expiration date		Dec. 31, 2025
Share-based compensation options, outstanding, exercise price	$ 0.13	$ 0.90	$ 0.30	$ 0.85	$ 0.76	$ 0.96	$ 0.90
Employees stock options vesting period, description	Vesting continuing until 2023		vesting continuing until 2019	vesting continuing until 2020	vesting continuing until 2020	vesting continuing until 2020	vesting continuing until 2019
Share-based compensation options vested, fair value	$ 44,591			$ 70,872	$ 63,937	$ 174,748	$ 196,250
Stock option compensation											$ 4,357
Share-based compensation options vested percentage		100.00%
Employees One [Member]
Share-based compensation options, outstanding, exercise price	$ 0.90
Number of shares canceled stock options	150,000
Employees Two [Member]
Share-based compensation options, outstanding, exercise price	$ 0.96
Number of shares canceled stock options	160,000
Employees Three [Member]
Share-based compensation options, outstanding, exercise price	$ 0.76
Number of shares canceled stock options	100,000
Employees Four [Member]
Share-based compensation options, outstanding, exercise price	$ 0.30
Number of shares canceled stock options	750,000
Employees Five [Member]
Share-based compensation options, outstanding, exercise price	$ 0.38
Number of shares canceled stock options	500,000
Non-qualified Stock Option Agreement [Member] | Sophie Pibouin [Member] | 2015 Plan [Member]
Share-based compensation options, number of options granted								128,000
Share-based compensation options expiration date								Apr. 29, 2025
Share-based compensation options, outstanding, exercise price								$ 0.75
Non-qualified Stock Option Agreement [Member] | Murray Gross [Member] | 2015 Plan [Member]
Share-based compensation options, number of options granted								640,000
Share-based compensation options expiration date								Apr. 29, 2025
Share-based compensation options, outstanding, exercise price								$ 0.75
Share-based compensation options, vested, number of shares								400,000
Share-based compensation options vested and expected to vest								240,000
Total revenues								$ 1,000,000

Share-Based Compensation - Sche

Share-Based Compensation - Schedule of Estimated Values of Stock Option Grants Valuation Assumptions (Details)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
April 30, 2015 Grant [Member]
Risk-free interest rate	1.43%	1.43%
Weighted average expected term	5 years	5 years
Expected volatility	143.10%	143.10%
Expected dividend yield	0.00%	0.00%
January 1 , 2016 Grant [Member]
Risk-free interest rate	1.76%	1.76%
Weighted average expected term	5 years	5 years
Expected volatility	134.18%	134.18%
Expected dividend yield	0.00%	0.00%
February 10 , 2016 Grant [Member]
Risk-free interest rate	1.15%	1.15%
Weighted average expected term	5 years	5 years
Expected volatility	132.97%	132.97%
Expected dividend yield	0.00%	0.00%
December 6 , 2016 Grant [Member]
Risk-free interest rate	1.84%	1.84%
Weighted average expected term	5 years	5 years
Expected volatility	123.82%	123.82%
Expected dividend yield	0.00%	0.00%
March 15, 2017 Grant [Member]
Risk-free interest rate	2.14%	2.14%
Weighted average expected term	5 years	5 years
Expected volatility	121.19%	121.19%
Expected dividend yield	0.00%	0.00%
September 25, 2017 Grant [Member]
Risk-free interest rate	1.85%	1.85%
Weighted average expected term	5 years	5 years
Expected volatility	130.79%	130.79%
Expected dividend yield	0.00%	0.00%
January 30 , 2019 Grant [Member]
Risk-free interest rate	2.54%	2.54%
Weighted average expected term	5 years	5 years
Expected volatility	115.80%	115.80%
Expected dividend yield	0.00%	0.00%
March 11 , 2019 Grant [Member]
Risk-free interest rate	2.44%	2.44%
Weighted average expected term	5 years	5 years
Expected volatility	116.46%	116.46%
Expected dividend yield	0.00%	0.00%

Share-Based Compensation - Sc_2

Share-Based Compensation - Schedule of Stock Option Activity (Details) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Share-based Payment Arrangement [Abstract]
Shares Under Option, Outstanding beginning balance	2,238,000
Shares Under Option, Granted	2,177,500	1,350,000
Shares Under Option, Forfeited and expired	(1,672,500)
Shares Under Option, Outstanding ending balance	2,743,000
Shares Under Option, Exercisable ending balance	1,835,500
Weighted Average Exercise Price, Outstanding beginning balance	$ 0.55
Weighted- Average Exercise Price, Granted	0.13
Weighted- Average Exercise Price, Forfeited and expired	0.86
Weighted Average Exercise Price, Outstanding ending balance	0.26
Weighted Average Exercise Price, Exercisable ending balance	$ 0.33
Weighted Average Remaining Contractual Life Outstanding, beginning	8 years
Weighted Average Remaining Contractual Life Outstanding, ending	9 years
Weighted Average Remaining Contractual Life, Exercisable	9 years
Aggregate Intrinsic Value, Outstanding, beginning balance	$ 79,200
Aggregate Intrinsic Value, Outstanding ending balance	79,200
Aggregate Intrinsic Value, Exercisable ending balance	$ 79,200

Concentrations (Details Narrati

Concentrations (Details Narrative)	3 Months Ended		12 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Sales Revenue, Net [Member] | Tiburon, Inc [Member]
Concentration risk, percentage	11.00%	12.00%
Sales Revenue, Net [Member] | Laser Systems, Inc. [Member]
Concentration risk, percentage	8.00%
Sales Revenue, Net [Member] | Sycle.net [Member]
Concentration risk, percentage		10.00%
Sales Revenue, Net [Member] | Government Contracts [Member]
Concentration risk, percentage	33.00%	35.00%
Accounts Receivable [Member] | Customer One [Member]
Concentration risk, percentage	15.00%		22.00%
Accounts Receivable [Member] | Customer Two [Member]
Concentration risk, percentage	13.00%		16.00%
Accounts Receivable [Member] | Customer Three [Member]
Concentration risk, percentage			14.00%
Accounts Receivable [Member] | Customer Four [Member]
Concentration risk, percentage			14.00%