Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Aug. 06, 2015 | |
Entity Registrant Name | PAYMENT DATA SYSTEMS INC | |
Entity Central Index Key | 1,088,034 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 12,347,591 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 64,865,661 | $ 54,989,851 |
Accounts receivable, net | 904,903 | 1,037,208 |
Deferred tax asset, current | 773,000 | 773,000 |
Prepaid expenses and other | 158,695 | 129,258 |
Total current assets | 66,702,259 | 56,929,317 |
Property and equipment, net | 3,102,824 | 2,705,517 |
Other assets: | ||
Intangibles, net | 392,522 | 412,363 |
Deferred tax asset, noncurrent | 848,000 | 848,000 |
Other assets | 176,548 | 204,112 |
Total other assets | 1,417,070 | 1,464,475 |
Total assets | 71,222,153 | 61,099,309 |
Current liabilities: | ||
Accounts payable | 185,990 | 37,808 |
Accrued expenses | 1,541,178 | $ 1,851,033 |
Stock award payable | 131,993 | |
Customer deposits payable | 61,274,120 | $ 52,186,396 |
Total current liabilities | 63,133,281 | 54,075,237 |
Stockholders’ equity: | ||
Common stock, $0.001 par value, 200,000,000 shares authorized; 12,346,474 and 12,278,439 issued, and 12,013,464 and 11,945,430 outstanding at June 30, 2015 and December 31, 2014, respectively (see Note 9) | 185,197 | 184,177 |
Additional paid-in capital | 64,000,513 | 62,989,131 |
Treasury stock, at cost; 333,010 and 333,010 shares at June 30, 2015 and December 31, 2014, respectively (see Note 9) | (238,157) | (238,157) |
Deferred compensation | (6,521,061) | (5,839,992) |
Accumulated deficit | (49,337,620) | (50,071,087) |
Total stockholders’ equity | 8,088,872 | 7,024,072 |
Total liabilities and stockholders’ equity | $ 71,222,153 | $ 61,099,309 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - Scenario, Unspecified [Domain] - $ / shares | Jun. 30, 2015 | Dec. 31, 2014 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (in shares) | 12,346,474 | 12,278,439 |
Common stock, shares outstanding (in shares) | 12,013,464 | 11,945,430 |
Treasury stock, shares (in shares) | 333,010 | 333,010 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Revenues | $ 3,424,756 | $ 3,304,173 | $ 7,167,216 | $ 6,034,996 |
Operating expenses: | ||||
Cost of services | 2,426,612 | 2,349,268 | 4,802,006 | 4,441,294 |
Selling, general and administrative: | ||||
Stock-based compensation | $ 393,525 | $ 72,995 | 627,056 | $ 150,990 |
Cancellation of stock based compensation | (163,936) | |||
Other expenses | $ 419,838 | $ 404,825 | 937,018 | $ 785,258 |
Depreciation and amortization | 92,948 | 10,706 | 178,520 | 20,611 |
Total operating expenses | 3,332,923 | 2,837,794 | 6,380,664 | 5,398,153 |
Operating income | 91,833 | 466,379 | 786,552 | 636,843 |
Other income and (expense): | ||||
Interest income | 19,358 | 22,424 | 38,358 | 29,238 |
Other income (expense) | (32,305) | 8,593 | (32,409) | 5,233 |
Total other income and (expense), net | (12,947) | 31,017 | 5,949 | 34,471 |
Income before income taxes | 78,886 | 497,396 | 792,501 | 671,314 |
Income taxes | 54,036 | 10,595 | 59,036 | 22,774 |
Net income | $ 24,850 | $ 486,801 | $ 733,465 | $ 648,540 |
Basic earnings (loss) per common share (in dollars per share) | $ 0 | $ 0.06 | $ 0.10 | $ 0.08 |
Diluted earnings (loss) per common share and common share equivalent (in dollars per share) | $ 0 | $ 0.05 | $ 0.06 | $ 0.07 |
Weighted average common shares outstanding | ||||
Denominator for basic earnings per share, weighted average shares outstanding (in shares) | 7,369,329 | 8,334,304 | 7,369,329 | 8,333,949 |
Diluted (in shares) | 12,081,754 | 8,855,559 | 12,102,919 | 8,837,016 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Operating activities: | ||
Numerator for basic and diluted earnings per share, net income available to common shareholders | $ 733,465 | $ 648,540 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 158,679 | $ 20,611 |
Amortization | 19,841 | |
Non-cash stock based compensation | 627,056 | $ 150,990 |
Cancellation of stock based compensation | $ (163,936) | |
Issuance of stock to employee | ||
Changes in current assets and current liabilities: | ||
Accounts receivable | $ 132,305 | $ (302,444) |
Prepaid expenses and other | (29,437) | (2,648) |
Other assets | 27,564 | (50,011) |
Accounts payable and accrued expenses | (161,673) | 32,410 |
Customer deposits payable | 9,087,724 | 33,749,138 |
Net cash provided by operating activities: | 10,431,588 | 34,246,586 |
Investing activities: | ||
Purchases of property and equipment | (555,778) | (30,233) |
Net cash (used) by investing activities: | (555,778) | (30,233) |
Financing activities: | ||
Net cash (used) by financing activities: | 0 | 0 |
Change in cash and cash equivalents | 9,875,810 | 34,216,353 |
Cash and cash equivalents, beginning of period | 54,989,851 | 26,573,771 |
Cash and cash equivalents, end of period | $ 64,865,661 | $ 60,790,124 |
Cash paid during the period for: | ||
Interest | ||
Income taxes | $ 77,369 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Basis of Presentation and Significant Accounting Policies [Text Block] | Note 1. Basis of Presentation The accompanying unaudited condensed consolidated financial statements of Payment Data Systems, Inc. and its subsidiaries (the “Company”) have been prepared without audit, pursuant to the instructions to Form 10-Q and Article 8 of Regulation S-X of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with United States generally accepted accounting principles have been omitted pursuant to such rules and regulations. In the opinion of management, the accompanying interim condensed consolidated financial statements reflect all adjustments of a normal recurring nature considered necessary to present fairly the Company’s financial position, results of operations and cash flows for such periods. The accompanying interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2014, as filed with the SEC on March 30, 2015. Results of operations for interim periods are not necessarily indicative of results that may be expected for any other interim periods or the full fiscal year. Cash and Cash Equivalents: Customer Deposits: Estimates: New Accounting Pronouncement: Reclassifications |
Note 2 - Accrued Expenses
Note 2 - Accrued Expenses | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Current [Text Block] | Note 2. Accrued Expenses Accrued expenses consisted of the following balances: June 30, 2015 December 31, 2014 Indemnification liability $ 450,000 $ 450,000 Accrued commissions 412,394 460,977 Reserve for processing losses 272,365 272,365 Accrued salaries 174,703 158,380 Assumed liabilities 52,147 255,772 Accrued taxes 29,954 125,194 Other accrued expenses 149,615 128,345 Total accrued expenses $ 1,541,178 $ 1,851,033 On December 22, 2014, the Company entered into an Asset Purchase Agreement with Akimbo Financial, Inc. (“Akimbo”), a Texas corporation (the “Asset Purchase Agreement”). The assumed liabilities account is part of the Akimbo acquisition. Under the Asset Purchase Agreement, the Company entered into a transition agreement which provides for the continuation of the Akimbo business. Under the terms of the transition agreement, Akimbo agreed to provide services to customer cardholders in the ordinary course of business, and deduct any contract costs from the contract revenues for a period of 180 days following December 22, 2014 and the Company agreed to pay the costs on behalf of Akimbo up to a total amount of $300,000. As of June 30, 2015 the remaining balance is $52,147. Akimbo and the Company have agreed to extend the 180 days to apply the remaining balance of assumed liabilities. |
Note 3 - Net Income Per Share
Note 3 - Net Income Per Share | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | Note 3. Net Income Per Share Basic earnings per share (EPS) were computed by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted EPS differs from basic EPS due to the assumed conversion of potentially dilutive awards and options that were outstanding during the period. The following is a reconciliation of the numerators and the denominators of the basic and diluted per share computations for net income for the three and six months ended June 30, 2015 and 2014. All of the share numbers used are after the 1-for-15 reverse split effected on July 23, 2015 by using the June 30, 2015 share numbers and dividing by 15. Any fractional shares were rounded up. Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Numerator: Numerator for basic and diluted earnings per share, net income available to common shareholders $ 24,850 $ 486,801 $ 733,465 $ 648,540 Denominator: Denominator for basic earnings per share, weighted average shares outstanding 7,369,329 8,334,304 7,369,329 8,333,949 Effect of dilutive securities 4,712,425 521,255 4,733,590 503,067 Denominator for diluted earnings per share, adjust weighted average shares and assumed conversion 12,081,754 8,855,559 12,102,919 8,837,016 Basic earnings (loss) per common share $ 0.00 $ 0.06 $ 0.10 $ 0.08 Diluted earnings (loss) per common share and common share equivalent $ 0.00 $ 0.05 $ 0.06 $ 0.07 |
Note 4 - Acquisition
Note 4 - Acquisition | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | Note 4. Acquisition On December 22, 2014, the Company acquired the assets of Akimbo to increase market share of prepaid debit card services. The purchase price for the software, customer list, fixed assets and goodwill was $3 million in common stock of the Company. The Akimbo operations are included in the Company’s consolidated financial statements from the date of acquisition. The purchase price for Akimbo was allocated based on the fair values of the assets at the date of acquisition as follows: Software $ 2,585,385 Equipment and other assets 2,252 Customer list and contracts 396,824 Goodwill 15,539 Trade accounts payable (300,000 ) Indemnification liability (450,000 ) Total $ 2,250,000 Goodwill is being amortized over 15 years for tax purposes. |
Note 5 - Income Taxes
Note 5 - Income Taxes | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | Note 5. Income Taxes The Company has recognized a deferred tax asset of $1.6 million and has recorded a valuation allowance of $12.2 million to reduce the other deferred tax assets. The Company does not anticipate there will be a significant change through the end of 2015. As such, management has determined that the assessment of the deferred tax asset and valuation allowance will be made on an annual basis. |
Note 6 - Related Party Transact
Note 6 - Related Party Transactions | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | Note 6. Related Party Transactions Michael R. Long and Louis A. Hoch On March 11, 2013, in accordance with the Company’s employment agreements with Mr. Long and Mr. Hoch, the Company accepted shares of the Company’s common stock owned by Mr. Long and Mr. Hoch as satisfaction in full for the remaining amounts owed to the Company as annual payments due to the loss on margin loans guaranteed by the Company for Mr. Long and Mr. Hoch in 2002. On March 11, 2013, the Company also agreed to purchase additional shares of its common stock owned by Mr. Long and Mr. Hoch, valued at $156,852 and $144,403, respectively, in lieu of the issuances of cash bonuses to Mr. Long and Mr. Hoch. Such bonuses were intended to compensate the executives for their service. As a result, the Company incurred a one-time reduction in cash of $301,255. Accordingly, on March 11, 2013, the Company accepted an aggregate of 2,969,459 shares of the Company’s common stock valued at $534,503, and an aggregate of 2,606,051 shares of the Company’s common stock valued at $469,089 from Mr. Long and Mr. Hoch, respectively, as satisfaction in full of their aggregated outstanding amounts of $702,337 owed to the Company and aggregated compensation of $301,255 paid to Mr. Long and Mr. Hoch in lieu of cash bonuses. The common stock accepted from Mr. Long and Mr. Hoch was valued at $0.18 per share, which was the closing price of the common stock on March 1, 2013. The common stock accepted from Mr. Long and Mr. Hoch was recorded as treasury stock and the Company no longer carries a “Related Party Receivable” on its balance sheet. Accordingly, following the completion of these transactions, the Company had no remaining receivables or payables related to Mr. Long, Mr. Hoch or any other officer of the Company at December 31, 2014 or 2013. Herb Authier During the six months ending June 30, 2015 and the year ended December 31, 2014, the Company paid Herb Authier a total of $23,830 and $42,000 in cash, respectively, for services related to network engineering and administration that he provided to the Company. Mr. Authier is the father-in-law of Louis Hoch, the Company’s President and Chief Operating Officer. Nikole Hoch During the six months ending June 30, 2015 and the year ended December 31, 2014, the Company purchased a total of $0 and $6,227, respectively, of corporate imprinted sportswear and caps from Angry Pug Sportswear. Nikole Hoch, the spouse of our President and Chief Operating Officer Louis Hoch, is the sole owner of Angry Pug Sportswear. |
Note 7 - Legal Proceedings
Note 7 - Legal Proceedings | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Legal Matters and Contingencies [Text Block] | Note 7. Legal Proceedings The Company is involved in a lawsuit with a customer that alleges it did not warn or stop the processing of $181,709 in fraudulent credit transactions from occurring. The Company believes that the customer breached the Company’s processing agreement and that a security breach occurred because of the customer’s lack of controls over the login and password information utilized by the customer to process transactions resulting in the customer becoming a victim of a malware attack. The agreement between the customer and the Company has a limitation of liability provision that allows for the maximum liability of the Company to not exceed the amount of fees of a single month of service. While the Company believes the claims of the customer are without merit, the outcome of the dispute is still uncertain. The Company believes that any potential loss or judgment amount does not need to be accounted for at this time beyond the current balance in the reserve for losses on merchant account. On June 26, 2015, Michael McFarland, derivatively on behalf the Company, and individually on behalf of himself and all other similarly situated shareholders of the Company, filed a class-action lawsuit in United States District Court, District of Nevada. The suit alleges breach of fiduciary duties and unjust enrichment by the Company’s Board of Directors and certain executive officers and directors in connection with excessive and unfair compensation paid or awarded during fiscal years 2013 and 2014. The lawsuit seeks disgorgement of excessive compensation as well as damages in an unspecified amount. The Company believes the claims are without merit and it is unlikely that a loss will be incurred, therefore the Company has not accrued for a potential loss. However, the outcomes of the disputes are still uncertain and it is possible the Company may incur legal fees and losses in the future. Aside from the lawsuits described above, the Company may be involved in legal matters arising in the ordinary course of business from time to time. While the Company believes that such matters are currently not material, there can be no assurance that matters arising in the ordinary course of business for which the Company is or could become involved in litigation, will not have a material adverse effect on the Company’s business, financial condition or results of operations. |
Note 8 - Subsequent Events
Note 8 - Subsequent Events | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | Note 8. Subsequent Events On July 2, 2015, the Company’s shareholders approved the Payment Data Systems, Inc. 2015 Equity Incentive Plan. The 2015 Equity Incentive Plan permits the Company to issue up to 5,000,000 shares (after the effects of the 1-for-15 reverse split effected on July 23, 2015) of our common capital stock, including automatic increases through the fiscal year 2025 for awards to employees, non-employee directors, and consultants. The Plan is administered by the Company’s Compensation Committee. On July 2, 2015, the Company’s shareholders approved a reverse stock split of our common stock in a whole number ratio of 1-for-12 to 1-for-15. On July 2, 2015, the Board of Directors approved the implementation of the reverse stock split at a ratio of 1-for-15. On July 23, 2015, pursuant to shareholder and board approval, the Company effected a 1-for-15 reverse stock split of the outstanding common stock by filing a certificate of change with the Secretary of State of the State of Nevada and obtaining approval by the Financial Industry Regulatory Authority. The number of our authorized common shares remained unchanged at 200,000,000 shares, par value $0.001 per share, after the reverse stock split. The number of our authorized preferred stock remains unchanged at 10,000,000 shares, par value $0.01 per share. |
Note 9 - Reverse Stock Split
Note 9 - Reverse Stock Split | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Reverse Stock Split [Text Block] | Note 9. Reverse Stock Split On July 23, 2015, pursuant to shareholder and board approval, the Company effected a 1-for-15 reverse stock split of the outstanding common stock by filing a certificate of change with the Secretary of State of the State of Nevada and obtaining approval by the Financial Industry Regulatory Authority. The number of our authorized common shares remained unchanged at 200,000,000 shares, par value $0.001 per share, after the reverse stock split. The number of our authorized preferred stock remains unchanged at 10,000,000 shares, par value $0.01 per share. The number of shares issued and outstanding as of August 6, 2015 was 12,347,591. The number of shares issued and outstanding prior to the reverse split was 185,197,097 and 180,201,953 at June 30, 2015 respectively. The Condensed Consolidated Balance Sheets shows 12,346,474 and 12,013,464 issued and outstanding at June 30, 2015, respectively. These were calculated by dividing the pre-split number of shares by 15, and rounding up any fractional shares. There were no issuances of shares between June 30, 2015 and August 6, 2015 other than rounding of fractional shares. The difference of 1,117 between the issued shares at June 30, 2015 and August 6, 2015 is due to rounding of fractional shares because the Company agreed to issue a full share for any fractional shares that resulted from the reverse split. The number of treasury shares was 4,995,144 at June 30, 2015 prior to the reverse split. The Condensed Consolidated Balance Sheets shows 333,010 treasury shares for June 30, 2015. This was calculated by dividing the pre-split number of shares by 15, and rounding up any fractional shares. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents: |
Deposit Contracts, Policy [Policy Text Block] | Customer Deposits: |
Use of Estimates, Policy [Policy Text Block] | Estimates: |
New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Pronouncement: |
Reclassification, Policy [Policy Text Block] | Reclassifications |
Note 2 - Accrued Expenses (Tabl
Note 2 - Accrued Expenses (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Notes Tables | |
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | June 30, 2015 December 31, 2014 Indemnification liability $ 450,000 $ 450,000 Accrued commissions 412,394 460,977 Reserve for processing losses 272,365 272,365 Accrued salaries 174,703 158,380 Assumed liabilities 52,147 255,772 Accrued taxes 29,954 125,194 Other accrued expenses 149,615 128,345 Total accrued expenses $ 1,541,178 $ 1,851,033 |
Note 3 - Net Income Per Share (
Note 3 - Net Income Per Share (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Numerator: Numerator for basic and diluted earnings per share, net income available to common shareholders $ 24,850 $ 486,801 $ 733,465 $ 648,540 Denominator: Denominator for basic earnings per share, weighted average shares outstanding 7,369,329 8,334,304 7,369,329 8,333,949 Effect of dilutive securities 4,712,425 521,255 4,733,590 503,067 Denominator for diluted earnings per share, adjust weighted average shares and assumed conversion 12,081,754 8,855,559 12,102,919 8,837,016 Basic earnings (loss) per common share $ 0.00 $ 0.06 $ 0.10 $ 0.08 Diluted earnings (loss) per common share and common share equivalent $ 0.00 $ 0.05 $ 0.06 $ 0.07 |
Note 4 - Acquisition (Tables)
Note 4 - Acquisition (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Notes Tables | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | Software $ 2,585,385 Equipment and other assets 2,252 Customer list and contracts 396,824 Goodwill 15,539 Trade accounts payable (300,000 ) Indemnification liability (450,000 ) Total $ 2,250,000 |
Note 2 - Accrued Expenses (Deta
Note 2 - Accrued Expenses (Details Textual) - USD ($) | Dec. 22, 2014 | Jun. 30, 2015 | Dec. 31, 2014 |
Akimbo [Member] | Maximum [Member] | |||
Business Combination, Contingent Consideration, Liability, Current | $ 300,000 | ||
Akimbo [Member] | |||
Business Combination, Transition Period | 180 days | ||
Assumed Liabilities | $ 52,147 | ||
Assumed Liabilities | $ 52,147 | $ 255,772 |
Note 2 - Accrued Expenses (De20
Note 2 - Accrued Expenses (Details) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Indemnification liability | $ 450,000 | $ 450,000 |
Accrued commissions | 412,394 | 460,977 |
Reserve for processing losses | 272,365 | 272,365 |
Accrued salaries | 174,703 | 158,380 |
Assumed liabilities | 52,147 | 255,772 |
Accrued taxes | 29,954 | 125,194 |
Other accrued expenses | 149,615 | 128,345 |
Total accrued expenses | $ 1,541,178 | $ 1,851,033 |
Note 3 - Net Income Per Share21
Note 3 - Net Income Per Share (Details Textual) | Jul. 23, 2015 |
Subsequent Event [Member] | Reverse Stock Split [Member] | |
Stockholders' Equity Note, Stock Split, Conversion Ratio | 15 |
Note 3 - Earnings per Share Num
Note 3 - Earnings per Share Numerator and Denominator (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Numerator: | ||||
Numerator for basic and diluted earnings per share, net income available to common shareholders | $ 24,850 | $ 486,801 | $ 733,465 | $ 648,540 |
Denominator: | ||||
Denominator for basic earnings per share, weighted average shares outstanding (in shares) | 7,369,329 | 8,334,304 | 7,369,329 | 8,333,949 |
Effect of dilutive securities (in shares) | 4,712,425 | 521,255 | 4,733,590 | 503,067 |
Denominator for diluted earnings per share, adjust weighted average shares and assumed conversion (in shares) | 12,081,754 | 8,855,559 | 12,102,919 | 8,837,016 |
Basic earnings (loss) per common share (in dollars per share) | $ 0 | $ 0.06 | $ 0.10 | $ 0.08 |
Diluted earnings (loss) per common share and common share equivalent (in dollars per share) | $ 0 | $ 0.05 | $ 0.06 | $ 0.07 |
Note 4 - Acquisition (Details T
Note 4 - Acquisition (Details Textual) - Dec. 22, 2014 - Akimbo [Member] - USD ($) $ in Millions | Total |
Stock Issued During Period, Value, Acquisitions | $ 3 |
Goodwill Amortization Period | 15 years |
Note 4 - Business Acquisition (
Note 4 - Business Acquisition (Details) - Akimbo [Member] | Dec. 22, 2014USD ($) |
Software | $ 2,585,385 |
Equipment and other assets | 2,252 |
Customer list and contracts | 396,824 |
Goodwill | 15,539 |
Trade accounts payable | (300,000) |
Indemnification liability | (450,000) |
Total | $ 2,250,000 |
Note 5 - Income Taxes (Details
Note 5 - Income Taxes (Details Textual) $ in Millions | Jun. 30, 2015USD ($) |
Deferred Tax Assets, Net of Valuation Allowance | $ 1.6 |
Deferred Tax Assets, Valuation Allowance | $ 12.2 |
Note 6 - Related Party Transa26
Note 6 - Related Party Transactions (Details Textual) - USD ($) | Mar. 11, 2013 | Jun. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Michael R. Long [Member] | ||||
Payments for Repurchase of Common Stock | $ 156,852 | |||
Treasury Stock, Shares, Acquired | 2,969,459 | |||
Treasury Stock, Value, Acquired, Cost Method | $ 534,503 | |||
Louis A. Hoch [Member] | ||||
Payments for Repurchase of Common Stock | $ 144,403 | |||
Treasury Stock, Shares, Acquired | 2,606,051 | |||
Treasury Stock, Value, Acquired, Cost Method | $ 469,089 | |||
Michael R. Long and Louis A. Hoch [Member] | ||||
Accounts Receivable, Related Parties | 702,337 | |||
Payments for Repurchase of Common Stock | $ 301,255 | |||
Treasury Stock Acquired, Average Cost Per Share | $ 0.18 | |||
Herb Authier [Member] | ||||
Related Party Transaction, Purchases from Related Party | $ 23,830 | $ 42,000 | ||
Nikole Hoch [Member] | ||||
Related Party Transaction, Purchases from Related Party | $ 0 | 6,227 | ||
Accounts Receivable, Related Parties | 0 | $ 0 | ||
Accounts Payable, Related Parties | $ 0 | $ 0 |
Note 7 - Legal Proceedings (Det
Note 7 - Legal Proceedings (Details Textual) | Jun. 30, 2015USD ($) |
Fraudulent Credit Transactions on a Customer Account [Member] | |
Loss Contingency, Range of Possible Loss, Maximum | $ 181,709 |
Note 8 - Subsequent Events (Det
Note 8 - Subsequent Events (Details Textual) | Jul. 23, 2015$ / sharesshares | Jul. 02, 2015 | Jun. 30, 2015$ / sharesshares | Dec. 31, 2014$ / sharesshares |
Subsequent Event [Member] | Equity Incentive Plan 2025 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 5,000,000 | |||
Subsequent Event [Member] | Reverse Stock Split [Member] | Minimum [Member] | ||||
Stockholders' Equity Note, Stock Split, Approved Conversion Ratio | 12 | |||
Subsequent Event [Member] | Reverse Stock Split [Member] | Maximum [Member] | ||||
Stockholders' Equity Note, Stock Split, Approved Conversion Ratio | 15 | |||
Subsequent Event [Member] | Reverse Stock Split [Member] | ||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 15 | |||
Subsequent Event [Member] | ||||
Common Stock, Shares Authorized | 200,000,000 | |||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.001 | |||
Preferred Stock, Shares Authorized | 10,000,000 | |||
Preferred Stock, Par or Stated Value Per Share | $ / shares | $ 0.01 | |||
Common Stock, Shares Authorized | 200,000,000 | 200,000,000 | ||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.001 | $ 0.001 |
Note 9 - Reverse Stock Split (D
Note 9 - Reverse Stock Split (Details Textual) | Jul. 23, 2015$ / sharesshares | Aug. 06, 2015shares | Jun. 30, 2015$ / sharesshares | Dec. 31, 2014$ / sharesshares |
Subsequent Event [Member] | Reverse Stock Split [Member] | ||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 15 | |||
Subsequent Event [Member] | ||||
Common Stock, Shares, Issued | 12,347,591 | |||
Stock Issued During Period, Shares, New Issues | 0 | |||
Common Stock, Shares Authorized | 200,000,000 | |||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.001 | |||
Preferred Stock, Shares Authorized | 10,000,000 | |||
Preferred Stock, Par or Stated Value Per Share | $ / shares | $ 0.01 | |||
Common Stock, Shares, Outstanding | 12,347,591 | |||
Difference in Shares Issued from Reserve Stock Split | 1,117 | |||
Prior to Reverse Stock Split [Member] | ||||
Common Stock, Shares, Issued | 185,197,097 | |||
Common Stock, Shares, Outstanding | 180,201,953 | |||
Treasury Stock, Shares | 4,995,144 | |||
Common Stock, Shares, Issued | 12,346,474 | 12,278,439 | ||
Common Stock, Shares Authorized | 200,000,000 | 200,000,000 | ||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.001 | $ 0.001 | ||
Common Stock, Shares, Outstanding | 12,013,464 | 11,945,430 | ||
Treasury Stock, Shares | 333,010 | 333,010 |