Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 24, 2016 | Jun. 30, 2015 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | TABLE TRAC INC | ||
Entity Central Index Key | 1,090,396 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 2.4 | ||
Trading Symbol | TBTC | ||
Entity Common Stock, Shares Outstanding | 4,523,265 |
BALANCE SHEETS
BALANCE SHEETS - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
CURRENT ASSETS | ||
Cash | $ 289,105 | $ 1,208,201 |
Accounts receivable, net of allowance for doubtful accounts of $185,397 at December 31, 2015 and $101,079 at December 31, 2014 | 2,494,930 | 2,224,576 |
Inventory | 656,137 | 893,743 |
Prepaid expenses and other current assets | 88,180 | 98,607 |
Income taxes receivable | 68,101 | 16,610 |
TOTAL CURRENT ASSETS | 3,596,453 | 4,441,737 |
LONG-TERM ASSETS | ||
Patent, net | 1,638 | 3,003 |
Property and equipment, net | 54,534 | 2,138 |
Other long-term assets | 1,289,786 | 344,816 |
Deferred tax asset | 331,000 | 19,000 |
Long-term accounts receivable - financed contracts | 1,569,285 | 675,683 |
TOTAL LONG-TERM ASSETS | 3,246,243 | 1,044,640 |
TOTAL ASSETS | 6,842,696 | 5,486,377 |
CURRENT LIABILITIES | ||
Accounts payable and accrued expenses | 413,235 | 217,352 |
Payroll liabilities | 29,444 | 60,726 |
Current portion of note payable | 7,096 | 0 |
Deferred revenue - short-term | 37,810 | 38,975 |
Income taxes payable | 0 | 109,967 |
Deferred tax liability | 797,000 | 766,947 |
TOTAL CURRENT LIABILITIES | 1,284,585 | 1,193,967 |
LONG-TERM LIABILITIES | ||
Note payable, net of current portion | 26,215 | 0 |
Deferred revenue - long-term | 2,890,467 | 1,090,746 |
TOTAL LIABILITIES | 4,201,267 | 2,284,713 |
STOCKHOLDERS' EQUITY | ||
Common stock, $0.001 par value; 25,000,000 shares authorized: 4,656,734 and 4,706,156 shares issued, and 4,533,265 and 4,705,734 shares outstanding at December 31, 2015 and 2014, respectively | 4,534 | 4,706 |
Additional paid-in capital | 1,806,526 | 1,845,198 |
Retained earnings | 953,911 | 1,353,182 |
Stockholders' Equity before Treasury Stock | 2,764,971 | 3,203,086 |
Treasury stock, 123,469 shares (at cost) at December 31, 2015 and 1,000 at December 31, 2014 | (123,542) | (1,422) |
TOTAL STOCKHOLDERS’ EQUITY | 2,641,429 | 3,201,664 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 6,842,696 | $ 5,486,377 |
BALANCE SHEETS (Parenthetical)
BALANCE SHEETS (Parenthetical) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Allowance for doubtful accounts (in dollars) | $ 185,397 | $ 101,079 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, shares issued | 4,656,734 | 4,706,156 |
Common stock, shares outstanding | 4,533,265 | 4,705,734 |
Treasury stock, shares | 123,469 | 1,000 |
STATEMENTS OF OPERATIONS
STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues | $ 3,766,041 | $ 3,478,580 |
Cost of sales | 1,082,724 | 635,674 |
Gross profit | 2,683,317 | 2,842,906 |
Operating Expenses: | ||
Selling, general and administrative | 3,393,688 | 2,865,759 |
Loss from operations | (710,371) | (22,853) |
Loss on currency exchange | (22,486) | 0 |
Interest income | 53,586 | 63,155 |
Gain on sale of assets | 6,000 | 0 |
Income (loss) before taxes | (673,271) | 40,302 |
Income tax expense (benefit) | (274,000) | 7,012 |
Net income (loss) | $ (399,271) | $ 33,290 |
Net income (loss) per share - basic and diluted (in dollar per share) | $ (0.09) | $ 0.01 |
Weighted-average shares outstanding - basic and diluted (in shares) | 4,591,937 | 4,776,085 |
STATEMENTS OF STOCKHOLDERS' EQU
STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] |
BALANCE at Dec. 31, 2013 | $ 3,208,662 | $ 4,775 | $ 1,885,417 | $ 1,319,892 | $ (1,422) |
BALANCE (in shares) at Dec. 31, 2013 | 4,774,805 | ||||
Common stock awarded to employees and board member from treasury | 11,625 | $ 15 | 11,610 | 0 | 0 |
Common stock awarded to employees and board member from treasury (in shares) | 15,000 | ||||
Shares repurchased and retired | (51,913) | $ (84) | (51,829) | 0 | 0 |
Shares repurchased and retired (in shares) | (84,071) | ||||
Net income (loss) | 33,290 | $ 0 | 0 | 33,290 | 0 |
BALANCE at Dec. 31, 2014 | 3,201,664 | $ 4,706 | 1,845,198 | 1,353,182 | (1,422) |
BALANCE (in shares) at Dec. 31, 2014 | 4,705,734 | ||||
Common stock awarded to employees and board member from treasury | 22,420 | $ 19 | 5,278 | 0 | 17,123 |
Common stock awarded to employees and board member from treasury (in shares) | 19,000 | ||||
Shares repurchased and retired | $ (44,000) | $ (50) | (43,950) | 0 | 0 |
Shares repurchased and retired (in shares) | (10,000) | (50,000) | |||
Shares repurchased into treasury | $ (139,384) | $ (141) | 0 | 0 | (139,243) |
Shares repurchased into treasury (in shares) | (141,469) | ||||
Net income (loss) | (399,271) | $ 0 | 0 | (399,271) | 0 |
BALANCE at Dec. 31, 2015 | $ 2,641,429 | $ 4,534 | $ 1,806,526 | $ 953,911 | $ (123,542) |
BALANCE (in shares) at Dec. 31, 2015 | 4,533,265 |
STATEMENTS OF CASH FLOWS
STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
OPERATING ACTIVITIES | ||
Net income (loss) | $ (399,271) | $ 33,290 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 10,089 | 14,938 |
Deferred income taxes | (281,947) | (189,800) |
Allowance for doubtful accounts | 84,318 | (10,975) |
Gain on disposal of asset | (6,000) | 0 |
Stock issued for services | 22,420 | 11,625 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (1,248,274) | 1,255,538 |
Inventory | 237,606 | (418,965) |
Prepaid expenses and other assets | (934,543) | 131,810 |
Accounts payable and accrued expenses | 204,633 | (358,449) |
Payroll liabilities | (31,282) | 25,427 |
Deferred revenue | 1,798,556 | (452,091) |
Income taxes receivable / payable | (161,458) | 178,908 |
Net cash provided by (used in) operating activities | (705,153) | 221,256 |
INVESTING ACTIVITIES | ||
Capital expenditures | (20,540) | 0 |
Net cash used in investing activities | (20,540) | 0 |
FINANCING ACTIVITIES | ||
Payments on note payable | (1,269) | (8,180) |
Repurchase of common stock | (192,134) | (43,163) |
Net cash used in financing activities | (193,403) | (51,343) |
NET INCREASE (DECREASE) IN CASH | (919,096) | 169,913 |
CASH | ||
Beginning of year | 1,208,201 | 1,038,288 |
End of year | 289,105 | 1,208,201 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes | 0 | 8,955 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Repurchase of Common Stock in accrued expenses | 0 | 8,750 |
Capital expenditure financed with note payable | $ 34,580 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block] | Company Table Trac, Inc. (the Company) was formed under the laws of the State of Nevada in June 1995. The Company has its offices in Minnetonka, Minnesota. The Company has developed and patented a proprietary information and management system that automates and monitors the operations of casino games. The Company provides system sales and technical support to casinos. System sales include installation, custom casino system configuration and training. In addition, license and technical support are provided under an annual license and service contract. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an on-going basis, the Company evaluates these estimates, including those related to revenue recognition, bad debts, valuation of inventory, intangible assets, and deferred income taxes. Actual results could differ from those estimates. Cash Deposits in Excess of Federally Insured Limits The Company maintains its cash balances at two financial institutions. Accounts are insured by the Federal Deposit Insurance Corporation up to $ 250,000 0 900,000 Major Customers For the Years Ended December 31 2015 2014 % Sales % AR % Sales % AR A 25.4 % 10.5 % 9.6 % 3.7 % B 2.8 % 1.5 % 15.9 % 11.3 % C 4.6 % 0.0 % 10.4 % 0.8 % D 6.2 % 6.5 % 5.9 % 16.0 % E 9.0 % 11.0 % 0.0 % 0.0 % F 9.7 % 34.1 % 0.0 % 0.0 % All Others 42.3 % 36.4 % 58.2 % 68.2 % Total 100.0 % 100.0 % 100.0 % 100.0 % The Company derives revenues from the sales of systems, licenses and maintenance fees, and services. System Sales and Licenses Revenue from systems that have been demonstrated to meet customer specifications during installation is recognized when evidence of an arrangement exists, the product has been delivered, title and risk of loss have transferred to the customer and collection of the resulting receivable is reasonably assured. System sales, which are accounted for as multiple-element arrangements, include multiple products and/or services. For multiple-element arrangements, the Company allocates the revenue to each element based on the hierarchy of estimated selling price for the deliverables. The selling price for each deliverable will be based on vendor specific objective evidence (VSOE), Third Party Evidence (“TPE”) if VSOE is not available, or estimated selling price if neither VSOE or TPE is available. The Company recognizes the associated revenue when all revenue recognition criteria have been met for each element. If there are contracts the Company does not have VSOE of all elements, the Company would follow the selling price hierarchy to allocate arrangement consideration. The Company does offer its customers contracts with extended payment terms. The Company must evaluate if any extended payment terms in the contract is an indicator of the revenue not being fixed or determinable. Provided all other revenue recognition criteria have been satisfied, the Company recognizes the revenue if payment of a significant portion of the systems sales is due within 12 months of the delivery of the product. The Company also analyzes its standard business practice of using long-term contracts and the history of collecting on extended payment term contracts without making concessions for determining if revenue should be recognized. Revenue and associated set-up costs are deferred if contract terms exceed historical collection results or if a substantial portion of the contract is not due within 12 months after delivery of the product. The Company analyzes each contract for proper revenue recognition based on that contract’s facts and circumstances. Interest is recorded upon receipt to “other income” on the statements of operations. Maintenance revenue Maintenance revenue is recognized ratably over the contract period. The VSOE for maintenance is based upon the renewal rate for contracted services. Service revenue Service revenue is recognized after the services are performed and collection of the resulting receivable is reasonably assured. The VSOE for service revenue is established based upon the selling prices for the services. Rental revenue The Company offers certain new customers a rental contract. Revenues are billed monthly based on a per-game per-day basis. There is an option to purchase the system after the rental agreement at a pre-determined residual value. Deferred system sales costs consist of installed system costs incurred on participation-based contracts. These costs are recognized on a straight-line basis over the term of the contract which is generally 18-48 months beginning when revenues are generated. At the end of the contract period, the customer will typically receive title to the system. These costs are included in other long-term assets on the balance sheet. The Company’s financial instruments consist of cash, accounts receivable, accounts payable and accrued expenses. Fair value estimates are at a specific point in time, based on relevant market information about the financial instrument. These estimates are subjective in nature and matters of significant judgment and therefore cannot be determined with precision. The Company considers the carrying values of its financial instruments to approximate fair value due to their short-term nature. For purposes of the statement of cash flows, the Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. The Company held no cash equivalents at December 31, 2015 or 2014. Accounts Receivable / Allowance for Doubtful Accounts Accounts receivable are recorded at the invoiced amount. Accounts receivable are recorded at net realizable value, which includes foreign currency translation as of each balance sheet date. Accounts receivable include unsecured regular customer receivables and unsecured amounts from financed contracts coming due within 12 months. Amounts from financed contracts due beyond 12 months are recorded as "Long-term accounts receivable financed contracts." Interest is recorded upon receipt to other income on the statements of operations. An allowance for doubtful accounts is recorded when the Company believes the amounts may not be collected. Management believes that receivables, net of the allowance for doubtful accounts, are fully collectible. Accounts receivable are written off when management determines collection is no longer likely. While the ultimate result may differ, management believes that any write-off not allowed for will not have a material impact on the Company's financial position. Accounts receivable are recorded at net realizable value, which includes foreign currency translation into U.S. Dollars, as of each balance sheet date. Inventory Inventory, consisting of finished goods, is stated at the lower of cost or market. The average cost method (which appropriates the first in, first out method) is used to value inventory. Inventory is reviewed annually for the lower of cost or market and obsolescence. Any material cost found to be above market value or considered obsolete is written down accordingly. The Company had no obsolescence reserve at December 31, 2015 and 2014. Property and Equipment Property and equipment are stated at cost and are depreciated using the straight-line method over the estimated useful lives of the assets which range from two to five years. Repair and maintenance costs are expensed as incurred; major renewals and improvements are capitalized. As items of property or equipment are sold or retired, the related cost and accumulated depreciation are removed from the accounts and any gain or loss is included in operating income. The Company periodically assesses the recoverability of long-lived assets and certain identifiable intangible assets by reviewing for potential impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Income taxes are provided for using the liability method of accounting. A deferred tax asset or liability is recorded for all temporary differences between financial and tax reporting. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax basis. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effect of changes in tax laws and rates on the date of enactment. The Company accounts for income taxes pursuant to Financial Accounting Standards Board (FASB) guidance. This guidance prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than not (a greater than 50 percent likelihood of being realized) to be sustained upon examination by taxing authorities. Expenditures for research and product development costs are expensed as incurred. Research and development expenses were $ 22,057 23,241 The Company recognizes the cost of stock-based compensation plans and awards in operations on a straight-line basis over the vesting period of the awards. The Company measures and recognizes compensation expense for all stock-based payment awards made to employees and directors. The compensation expense for the Company’s stock-based payments is based on estimated fair values at the time of the grant. The Company estimates the fair value of stock-based payment awards on the date of grant using an option pricing model. These option pricing models involve a number of assumptions, including the expected lives of stock options, the volatility of the public market price for the Company’s common stock and interest rates. Stock-based compensation expense recognized during the period is based on the value of the portion of stock-based payment awards that are ultimately expected to vest. There were no stock options issued during 2015 and 2014. Grants under the stock option plan expired on May 16, 2011 Stock-based compensation expense related to options was $ 0 0 Transactions in foreign currencies are translated to the respective functional currencies of the Company at exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are retranslated to the functional currency at the exchange rate at that date. Foreign currency differences arising on retranslation are recognized in profit or loss. Basic earnings per share is computed by dividing net income by the weighted average shares outstanding during the reporting period. Diluted earnings per share is computed similar to basic earnings per share except that the weighted average shares outstanding are increased to include additional shares from the assumed exercise of stock options or warrants, if dilutive. The number of additional shares is calculated by assuming that outstanding stock options or warrants were exercised and that the proceeds from the exercise were used to acquire shares of common stock at the average market price during the reporting period. (See Note 8) In May 2014, and amended in July 2015, FASB issued guidance creating Accounting Standards Codification (“ASC”) Section 606, “Revenue from Contracts with Customers.” The new section will replace Section 605, “Revenue Recognition” and creates modifications to various other revenue accounting standards for specialized transactions and industries. The section is intended to conform revenue accounting principles to a concurrently issued International Financial Reporting Standards with previously differing treatment between United States practice and those of much of the rest of the world, as well as, to enhance disclosures related to disaggregated revenue information. The updated guidance is effective for annual reporting periods beginning on or after December 15, 2017, and interim periods within those annual periods. The Company will adopt the new provisions of this accounting standard at the beginning of 2018. The Company will further study the implications of this statement in order to evaluate the expected impact on its financial statements. In February 2016, FASB issued Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842), which provides guidance for accounting for leases. The new guidance requires companies to recognize the assets and liabilities for the rights and obligations created by leased assets, initially measured at the present value of the lease payments. The accounting guidance for lessors is largely unchanged. The ASU is effective for annual and interim periods beginning after December 15, 2018 with early adoption permitted. It is to be adopted using a modified retrospective approach. The Company is currently evaluating the impact that the adoption of this guidance will have on the Company’s financial statements and anticipates the new guidance will significantly impact its financial statements given the Company has a significant number of leases. In July 2015, FASB issued ASU No. 2015-11, which amended Inventory (Topic 330) Related to Simplifying the Measurement of Inventory of the Accounting Standards Codification. The amended guidance applies to all inventory except that which is measured using last-in, first-out (LIFO) or the retail inventory method. Inventory measured using first-in, first-out (FIFO) or average cost is included in the new amendments. Inventory within the scope of the new guidance should be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured using LIFO or the retail inventory method. The amendments will take effect for the Company for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. The new guidance should be applied prospectively, and earlier application is permitted as of the beginning of an interim or annual reporting period. The Company is currently evaluating the impact that the adoption of this guidance will have on the Company’s financial statements. |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Accounts Receivable [Text Block] | NOTE 2. ACCOUNTS RECEIVABLE Accounts receivable consisted of the following at: December 31, 2015 December 31, 2014 Accounts receivable under normal 30 day terms $ 664,928 $ 1,406,665 Financed contracts: Short-term 0 22,754 Current portion of long-term 2,015,389 896,236 Long-term, net of current portion 1,569,285 675,683 Total accounts receivable 4,249,612 3,001,338 Less allowance for doubtful accounts (185,397) (101,079) Accounts receivable, net $ 4,064,215 $ 2,900,259 Presented on the balance sheet as: Accounts receivable, net $ 2,494,930 $ 2,224,576 Long-term accounts receivable - financed contracts 1,569,285 675,683 The allowance for financed and trade receivable represents management’s estimate of probable losses in our trade and financed receivables as of the date of the financial statements. The allowance provides for probable losses that have been identified with specific customer relationships and for probable losses believed to be inherent of the trade and financed receivables, but that have not been specifically identified. Included in accounts receivable - Financed contracts at December 31, 2015 and 2014 is $ 3,584,684 1,594,673 2,890,467 1,090,746 For the Year Ended For the Year Ended December 31, 2015 December 31, 2014 Accounts receivable allowance, beginning of year $ 101,079 $ 112,054 Provision adjustment during year 84,318 (10,975) Write-off 0 0 Accounts receivable allowance, end of year $ 185,397 $ 101,079 The allowance for doubtful accounts as of December 31, 2015 is $ 185,397 0 101,079 0 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | NOTE 3. PROPERTY AND EQUIPMENT December 31, 2015 December 31, 2014 Office equipment $ 49,294 $ 29,175 Vehicles 118,375 77,374 Total 167,669 106,549 Less: accumulated depreciation (113,135) (104,411) Property and equipment, net $ 54,534 $ 2,138 Depreciation expense totaled $ 8,725 13,573 |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | NOTE 4. LONG-TERM DEBT The Company entered into a $ 34,580 monthly 677 5.89 September 2020 33,311 2016 $ 7,096 2017 6,697 2018 7,102 2019 7,532 2020 4,884 Total $ 33,311 |
OPERATING LEASES
OPERATING LEASES | 12 Months Ended |
Dec. 31, 2015 | |
Leases, Operating [Abstract] | |
Operating Leases of Lessor Disclosure [Text Block] | NOTE 5. OPERATING LEASES The Company has a lease on corporate office space in Minnetonka, Minnesota, which expires on June 30, 2016 2,727 3,103 2016 21,719 Total $ 21,719 Rent expense was $ 31,556 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE 6. STOCKHOLDERS’ EQUITY Common Stock In August 2015, the Company transferred 7,500 1.18 11,500 1.18 22,420 As of December 31, 2015, the Company holds 123,469 123,542 In June 2014, the Company issued 7,500 90 6,750 6,750 In December 2014, the Company issued 7,500 65 4,875 4,875 Stock Repurchase Program In 2015, the Company repurchased and retired 50,000 44,000 141,469 139,384 99 On December 23, 2014, the Company’s Board of Directors approved the repurchase of its outstanding shares of up to $ 100,000 75,000 50,000 33,155 274,540 $ .95 Subsequent to year end, the Company has repurchased 10,000 Stock Options In October 2001, the Company implemented an Employee Stock Incentive Plan, which was approved by the shareholders at the annual meeting held in September 2001. This plan provides for the issuance of options to employees to purchase shares of the Company’s common stock at an exercise price at least equal to the fair value of the Company’s common stock at the grant date. Options may be exercisable for a period of up to five 1,000,000 In November 2010, the Company issued 70,000 1.75 Outstanding Weighted Average Aggregate and Exercisable Exercise Price Remaining Intrinsic Balance, December 31, 2013 60,000 1.75 2 $ - Granted 0 Exercised 0 Cancelled 50,000 Balance, December 31, 2014 10,000 1.75 1 $ - Granted 0 Exercised 0 Cancelled 10,000 1.75 Balance, December 31, 2015 0 1.75 0 $ - There were no stock options issued during 2015 and 2014. Grants under the stock option plan expired on May 16, 2011. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | NOTE 7. INCOME TAXES 2015 2014 Current tax expense $ 7,308 $ 196,812 Deferred tax (benefit) (281,308) (189,800) Total income tax expense (benefit) $ (274,000) $ 7,012 2015 2014 Amount Percent Amount Percent Expected federal tax (benefit) $ (228,900) 34.0 % $ 13,700 34.0 % Permanent differences 10,200 (1.5) % (7,900) (19.6) % State income tax, net of federal tax benefit (17,200) 2.6 % 1,300 3.2 % Foreign tax credit (19,100) 2.8 % 0 0.0 % Other (19,000) 2.8 % (88) (0.2) % Total $ (274,000) 40.7 % $ 7,012 17.4 % 2015 2014 Current deferred tax asset (liabilities): Accounts payable and accrued expenses $ 132,000 $ 61,000 Accounts receivable (1,572,000) (1,124,000) Allowance for doubtful accounts 69,000 38,000 Prepaid expenses (33,000) (36,000) Deferred revenue 607,000 294,053 Net current deferred tax liability (797,000) (766,947) Long-term deferred tax asset NOL - federal 265,000 0 NOL - State 38,000 7,000 Foreign tax credit 19,000 0 Book - Tax depreciation 9,000 12,000 Net long-term deferred tax asset 331,000 19,000 Net deferred tax liability $ (466,000) $ (747,947) The federal net operating loss carryforward at December 31, 2015 is approximately $ 777,000 682,000 expires between 2025 and 2035 if not used |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | NOTE 8. EARNINGS PER SHARE Earnings per share is computed under two different methods, basic and diluted, and is presented for all periods in which statements of operations are presented. Basic earnings per share is computed by dividing net income by the weighted average number of shares of common stock outstanding. Diluted earnings per share is computed by dividing net income by the weighted average number of shares of common stock and common stock equivalents outstanding. For the Years Ended 2015 2014 Basic and diluted earnings per share calculation: Net income (loss) to common stockholders $ (399,271) $ 33,290 Weighted average number of common shares outstanding 4,591,937 4,776,085 Basic net income (loss) per share $ (0.09) $ 0.01 In 2014, stock options outstanding of 10,000 |
GEOGRAPHIC CONCENTRATIONS
GEOGRAPHIC CONCENTRATIONS | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | NOTE 9. GEOGRAPHIC CONCENTRATIONS The Company sells its technologies and services to casinos in the United States, the Caribbean and countries in both Central and South America. For 2015 and 2014, 82 88 2 3 1 1 16 8 78 83 1 3 1 2 20 12 |
FOREIGN CURRENCY EXCHANGE RATE
FOREIGN CURRENCY EXCHANGE RATE RISK | 12 Months Ended |
Dec. 31, 2015 | |
Foreign Currency [Abstract] | |
Foreign Currency Disclosure [Text Block] | NOTE 10. FOREIGN CURRENCY EXCHANGE RATE RISK The Company is exposed to foreign currency risks that arise from some of its foreign customers in Colombia, transacted in Colombia Pesos. As a result, exchange rate fluctuations may cause our international results to fluctuate when translated into U.S. dollars. These risks may change over time as business practices evolve and could have an impact on the Company’s financial results in the future due to the long term nature of our accounts receivable in Colombia which totaled approximately $443,000 at December 31, 2015. The Company monitors its risk associated with the volatility of certain foreign currencies against U.S. dollars. The Company recorded a realized loss on foreign currency of approximately $22,000 in 2015. |
COMMITMENT AND CONTINGENCIES
COMMITMENT AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 11. COMMITMENT AND CONTINGENCIES During 2015, the Company entered into an Agreement with a contractor to design and execute on a sales and marketing strategy for the Company in key Latin American and Caribbean gaming jurisdictions. The Agreement expires July 14, 2016 unless terminated earlier in accordance with the terms of the Agreement. The remaining commitment as of December 31, 2015 is approximately $ 47,000 |
SUMMARY OF SIGNIFICANT ACCOUN18
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an on-going basis, the Company evaluates these estimates, including those related to revenue recognition, bad debts, valuation of inventory, intangible assets, and deferred income taxes. Actual results could differ from those estimates. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Cash Deposits in Excess of Federally Insured Limits The Company maintains its cash balances at two financial institutions. Accounts are insured by the Federal Deposit Insurance Corporation up to $ 250,000 0 900,000 Major Customers For the Years Ended December 31 2015 2014 % Sales % AR % Sales % AR A 25.4 % 10.5 % 9.6 % 3.7 % B 2.8 % 1.5 % 15.9 % 11.3 % C 4.6 % 0.0 % 10.4 % 0.8 % D 6.2 % 6.5 % 5.9 % 16.0 % E 9.0 % 11.0 % 0.0 % 0.0 % F 9.7 % 34.1 % 0.0 % 0.0 % All Others 42.3 % 36.4 % 58.2 % 68.2 % Total 100.0 % 100.0 % 100.0 % 100.0 % |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition The Company derives revenues from the sales of systems, licenses and maintenance fees, and services. System Sales and Licenses Revenue from systems that have been demonstrated to meet customer specifications during installation is recognized when evidence of an arrangement exists, the product has been delivered, title and risk of loss have transferred to the customer and collection of the resulting receivable is reasonably assured. System sales, which are accounted for as multiple-element arrangements, include multiple products and/or services. For multiple-element arrangements, the Company allocates the revenue to each element based on the hierarchy of estimated selling price for the deliverables. The selling price for each deliverable will be based on vendor specific objective evidence (VSOE), Third Party Evidence (“TPE”) if VSOE is not available, or estimated selling price if neither VSOE or TPE is available. The Company recognizes the associated revenue when all revenue recognition criteria have been met for each element. If there are contracts the Company does not have VSOE of all elements, the Company would follow the selling price hierarchy to allocate arrangement consideration. The Company does offer its customers contracts with extended payment terms. The Company must evaluate if any extended payment terms in the contract is an indicator of the revenue not being fixed or determinable. Provided all other revenue recognition criteria have been satisfied, the Company recognizes the revenue if payment of a significant portion of the systems sales is due within 12 months of the delivery of the product. The Company also analyzes its standard business practice of using long-term contracts and the history of collecting on extended payment term contracts without making concessions for determining if revenue should be recognized. Revenue and associated set-up costs are deferred if contract terms exceed historical collection results or if a substantial portion of the contract is not due within 12 months after delivery of the product. The Company analyzes each contract for proper revenue recognition based on that contract’s facts and circumstances. Interest is recorded upon receipt to “other income” on the statements of operations. Maintenance revenue Maintenance revenue is recognized ratably over the contract period. The VSOE for maintenance is based upon the renewal rate for contracted services. Service revenue Service revenue is recognized after the services are performed and collection of the resulting receivable is reasonably assured. The VSOE for service revenue is established based upon the selling prices for the services. Rental revenue The Company offers certain new customers a rental contract. Revenues are billed monthly based on a per-game per-day basis. There is an option to purchase the system after the rental agreement at a pre-determined residual value. |
Deferred System Sales Costs [Policy Text Block] | Deferred System Sales Costs Deferred system sales costs consist of installed system costs incurred on participation-based contracts. These costs are recognized on a straight-line basis over the term of the contract which is generally 18-48 months beginning when revenues are generated. At the end of the contract period, the customer will typically receive title to the system. These costs are included in other long-term assets on the balance sheet. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value of Financial Instruments The Company’s financial instruments consist of cash, accounts receivable, accounts payable and accrued expenses. Fair value estimates are at a specific point in time, based on relevant market information about the financial instrument. These estimates are subjective in nature and matters of significant judgment and therefore cannot be determined with precision. The Company considers the carrying values of its financial instruments to approximate fair value due to their short-term nature. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents For purposes of the statement of cash flows, the Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. The Company held no cash equivalents at December 31, 2015 or 2014. |
Trade and Other Accounts Receivable, Policy [Policy Text Block] | Accounts Receivable / Allowance for Doubtful Accounts Accounts receivable are recorded at the invoiced amount. Accounts receivable are recorded at net realizable value, which includes foreign currency translation as of each balance sheet date. Accounts receivable include unsecured regular customer receivables and unsecured amounts from financed contracts coming due within 12 months. Amounts from financed contracts due beyond 12 months are recorded as "Long-term accounts receivable financed contracts." Interest is recorded upon receipt to other income on the statements of operations. An allowance for doubtful accounts is recorded when the Company believes the amounts may not be collected. Management believes that receivables, net of the allowance for doubtful accounts, are fully collectible. Accounts receivable are written off when management determines collection is no longer likely. While the ultimate result may differ, management believes that any write-off not allowed for will not have a material impact on the Company's financial position. Accounts receivable are recorded at net realizable value, which includes foreign currency translation into U.S. Dollars, as of each balance sheet date. |
Inventory, Policy [Policy Text Block] | Inventory Inventory, consisting of finished goods, is stated at the lower of cost or market. The average cost method (which appropriates the first in, first out method) is used to value inventory. Inventory is reviewed annually for the lower of cost or market and obsolescence. Any material cost found to be above market value or considered obsolete is written down accordingly. The Company had no obsolescence reserve at December 31, 2015 and 2014. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment Property and equipment are stated at cost and are depreciated using the straight-line method over the estimated useful lives of the assets which range from two to five years. Repair and maintenance costs are expensed as incurred; major renewals and improvements are capitalized. As items of property or equipment are sold or retired, the related cost and accumulated depreciation are removed from the accounts and any gain or loss is included in operating income. |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Long-lived Assets The Company periodically assesses the recoverability of long-lived assets and certain identifiable intangible assets by reviewing for potential impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. |
Income Tax, Policy [Policy Text Block] | Income Taxes Income taxes are provided for using the liability method of accounting. A deferred tax asset or liability is recorded for all temporary differences between financial and tax reporting. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax basis. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effect of changes in tax laws and rates on the date of enactment. The Company accounts for income taxes pursuant to Financial Accounting Standards Board (FASB) guidance. This guidance prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than not (a greater than 50 percent likelihood of being realized) to be sustained upon examination by taxing authorities. |
Research and Development Expense, Policy [Policy Text Block] | Research and Development Expenditures for research and product development costs are expensed as incurred. Research and development expenses were $ 22,057 23,241 |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | The Company recognizes the cost of stock-based compensation plans and awards in operations on a straight-line basis over the vesting period of the awards. The Company measures and recognizes compensation expense for all stock-based payment awards made to employees and directors. The compensation expense for the Company’s stock-based payments is based on estimated fair values at the time of the grant. The Company estimates the fair value of stock-based payment awards on the date of grant using an option pricing model. These option pricing models involve a number of assumptions, including the expected lives of stock options, the volatility of the public market price for the Company’s common stock and interest rates. Stock-based compensation expense recognized during the period is based on the value of the portion of stock-based payment awards that are ultimately expected to vest. There were no stock options issued during 2015 and 2014. Grants under the stock option plan expired on May 16, 2011 Stock-based compensation expense related to options was $ 0 0 |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency Transactions Transactions in foreign currencies are translated to the respective functional currencies of the Company at exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are retranslated to the functional currency at the exchange rate at that date. Foreign currency differences arising on retranslation are recognized in profit or loss. |
Earnings Per Share, Policy [Policy Text Block] | Basic and Diluted Earnings Per Share Basic earnings per share is computed by dividing net income by the weighted average shares outstanding during the reporting period. Diluted earnings per share is computed similar to basic earnings per share except that the weighted average shares outstanding are increased to include additional shares from the assumed exercise of stock options or warrants, if dilutive. The number of additional shares is calculated by assuming that outstanding stock options or warrants were exercised and that the proceeds from the exercise were used to acquire shares of common stock at the average market price during the reporting period. (See Note 8) |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued Accounting Pronouncements In May 2014, and amended in July 2015, FASB issued guidance creating Accounting Standards Codification (“ASC”) Section 606, “Revenue from Contracts with Customers.” The new section will replace Section 605, “Revenue Recognition” and creates modifications to various other revenue accounting standards for specialized transactions and industries. The section is intended to conform revenue accounting principles to a concurrently issued International Financial Reporting Standards with previously differing treatment between United States practice and those of much of the rest of the world, as well as, to enhance disclosures related to disaggregated revenue information. The updated guidance is effective for annual reporting periods beginning on or after December 15, 2017, and interim periods within those annual periods. The Company will adopt the new provisions of this accounting standard at the beginning of 2018. The Company will further study the implications of this statement in order to evaluate the expected impact on its financial statements. In February 2016, FASB issued Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842), which provides guidance for accounting for leases. The new guidance requires companies to recognize the assets and liabilities for the rights and obligations created by leased assets, initially measured at the present value of the lease payments. The accounting guidance for lessors is largely unchanged. The ASU is effective for annual and interim periods beginning after December 15, 2018 with early adoption permitted. It is to be adopted using a modified retrospective approach. The Company is currently evaluating the impact that the adoption of this guidance will have on the Company’s financial statements and anticipates the new guidance will significantly impact its financial statements given the Company has a significant number of leases. In July 2015, FASB issued ASU No. 2015-11, which amended Inventory (Topic 330) Related to Simplifying the Measurement of Inventory of the Accounting Standards Codification. The amended guidance applies to all inventory except that which is measured using last-in, first-out (LIFO) or the retail inventory method. Inventory measured using first-in, first-out (FIFO) or average cost is included in the new amendments. Inventory within the scope of the new guidance should be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured using LIFO or the retail inventory method. The amendments will take effect for the Company for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. The new guidance should be applied prospectively, and earlier application is permitted as of the beginning of an interim or annual reporting period. The Company is currently evaluating the impact that the adoption of this guidance will have on the Company’s financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN19
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Revenue from External Customers by Geographic Areas [Table Text Block] | For the Years Ended December 31 2015 2014 % Sales % AR % Sales % AR A 25.4 % 10.5 % 9.6 % 3.7 % B 2.8 % 1.5 % 15.9 % 11.3 % C 4.6 % 0.0 % 10.4 % 0.8 % D 6.2 % 6.5 % 5.9 % 16.0 % E 9.0 % 11.0 % 0.0 % 0.0 % F 9.7 % 34.1 % 0.0 % 0.0 % All Others 42.3 % 36.4 % 58.2 % 68.2 % Total 100.0 % 100.0 % 100.0 % 100.0 % |
ACCOUNTS RECEIVABLE (Tables)
ACCOUNTS RECEIVABLE (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Accounts receivable consisted of the following at: December 31, 2015 December 31, 2014 Accounts receivable under normal 30 day terms $ 664,928 $ 1,406,665 Financed contracts: Short-term 0 22,754 Current portion of long-term 2,015,389 896,236 Long-term, net of current portion 1,569,285 675,683 Total accounts receivable 4,249,612 3,001,338 Less allowance for doubtful accounts (185,397) (101,079) Accounts receivable, net $ 4,064,215 $ 2,900,259 Presented on the balance sheet as: Accounts receivable, net $ 2,494,930 $ 2,224,576 Long-term accounts receivable - financed contracts 1,569,285 675,683 |
Schedule of Allowance Accounts Receivable [Table Text Block] | A roll-forward of the Company’s allowance for doubtful accounts for the years ended is as follows: For the Year Ended For the Year Ended December 31, 2015 December 31, 2014 Accounts receivable allowance, beginning of year $ 101,079 $ 112,054 Provision adjustment during year 84,318 (10,975) Write-off 0 0 Accounts receivable allowance, end of year $ 185,397 $ 101,079 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Property and equipment consists of the following at: December 31, 2015 December 31, 2014 Office equipment $ 49,294 $ 29,175 Vehicles 118,375 77,374 Total 167,669 106,549 Less: accumulated depreciation (113,135) (104,411) Property and equipment, net $ 54,534 $ 2,138 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Maturities of Long-term Debt [Table Text Block] | Estimated annual maturities of debt are as follows: 2016 $ 7,096 2017 6,697 2018 7,102 2019 7,532 2020 4,884 Total $ 33,311 |
OPERATING LEASES (Tables)
OPERATING LEASES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Leases, Operating [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Future minimum lease payments are as follows: 2016 21,719 Total $ 21,719 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | The following is a summary of all activity involving options for the years ended December 31: Outstanding Weighted Average Aggregate and Exercisable Exercise Price Remaining Intrinsic Balance, December 31, 2013 60,000 1.75 2 $ - Granted 0 Exercised 0 Cancelled 50,000 Balance, December 31, 2014 10,000 1.75 1 $ - Granted 0 Exercised 0 Cancelled 10,000 1.75 Balance, December 31, 2015 0 1.75 0 $ - |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The income tax provision consists of the following for the years ended December 31: 2015 2014 Current tax expense $ 7,308 $ 196,812 Deferred tax (benefit) (281,308) (189,800) Total income tax expense (benefit) $ (274,000) $ 7,012 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The reconciliation between expected federal income tax rates and the Company’s effective federal tax rates is as follows: 2015 2014 Amount Percent Amount Percent Expected federal tax (benefit) $ (228,900) 34.0 % $ 13,700 34.0 % Permanent differences 10,200 (1.5) % (7,900) (19.6) % State income tax, net of federal tax benefit (17,200) 2.6 % 1,300 3.2 % Foreign tax credit (19,100) 2.8 % 0 0.0 % Other (19,000) 2.8 % (88) (0.2) % Total $ (274,000) 40.7 % $ 7,012 17.4 % |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The following table summarizes the Company’s deferred tax assets and liabilities at December 31: 2015 2014 Current deferred tax asset (liabilities): Accounts payable and accrued expenses $ 132,000 $ 61,000 Accounts receivable (1,572,000) (1,124,000) Allowance for doubtful accounts 69,000 38,000 Prepaid expenses (33,000) (36,000) Deferred revenue 607,000 294,053 Net current deferred tax liability (797,000) (766,947) Long-term deferred tax asset NOL - federal 265,000 0 NOL - State 38,000 7,000 Foreign tax credit 19,000 0 Book - Tax depreciation 9,000 12,000 Net long-term deferred tax asset 331,000 19,000 Net deferred tax liability $ (466,000) $ (747,947) |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following table provides a reconciliation of the numerators and denominators used in calculating basic and diluted earnings per share for years ended December 31, 2015 and 2014: For the Years Ended 2015 2014 Basic and diluted earnings per share calculation: Net income (loss) to common stockholders $ (399,271) $ 33,290 Weighted average number of common shares outstanding 4,591,937 4,776,085 Basic net income (loss) per share $ (0.09) $ 0.01 |
SUMMARY OF SIGNIFICANT ACCOUN27
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Sales Revenue, Net [Member] | ||
Revenue, Major Customer [Line Items] | ||
% Sales and % AR | 100.00% | 100.00% |
Sales Revenue, Net [Member] | Customer A [Member] | ||
Revenue, Major Customer [Line Items] | ||
% Sales and % AR | 25.40% | 9.60% |
Sales Revenue, Net [Member] | Customer B [Member] | ||
Revenue, Major Customer [Line Items] | ||
% Sales and % AR | 2.80% | 15.90% |
Sales Revenue, Net [Member] | Customer C [Member] | ||
Revenue, Major Customer [Line Items] | ||
% Sales and % AR | 4.60% | 10.40% |
Sales Revenue, Net [Member] | Customer D [Member] | ||
Revenue, Major Customer [Line Items] | ||
% Sales and % AR | 6.20% | 5.90% |
Sales Revenue, Net [Member] | Customer E [Member] | ||
Revenue, Major Customer [Line Items] | ||
% Sales and % AR | 9.00% | 0.00% |
Sales Revenue, Net [Member] | Customer F [Member] | ||
Revenue, Major Customer [Line Items] | ||
% Sales and % AR | 9.70% | 0.00% |
Sales Revenue, Net [Member] | All Others [Member] | ||
Revenue, Major Customer [Line Items] | ||
% Sales and % AR | 42.30% | 58.20% |
Accounts Receivable [Member] | ||
Revenue, Major Customer [Line Items] | ||
% Sales and % AR | 100.00% | 100.00% |
Accounts Receivable [Member] | Customer A [Member] | ||
Revenue, Major Customer [Line Items] | ||
% Sales and % AR | 10.50% | 3.70% |
Accounts Receivable [Member] | Customer B [Member] | ||
Revenue, Major Customer [Line Items] | ||
% Sales and % AR | 1.50% | 11.30% |
Accounts Receivable [Member] | Customer C [Member] | ||
Revenue, Major Customer [Line Items] | ||
% Sales and % AR | 0.00% | 0.80% |
Accounts Receivable [Member] | Customer D [Member] | ||
Revenue, Major Customer [Line Items] | ||
% Sales and % AR | 6.50% | 16.00% |
Accounts Receivable [Member] | Customer E [Member] | ||
Revenue, Major Customer [Line Items] | ||
% Sales and % AR | 11.00% | 0.00% |
Accounts Receivable [Member] | Customer F [Member] | ||
Revenue, Major Customer [Line Items] | ||
% Sales and % AR | 34.10% | 0.00% |
Accounts Receivable [Member] | All Others [Member] | ||
Revenue, Major Customer [Line Items] | ||
% Sales and % AR | 36.40% | 68.20% |
SUMMARY OF SIGNIFICANT ACCOUN28
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Summary Of Significant Accounting Policies [Line Items] | ||
Research and Development Expense | $ 22,057 | $ 23,241 |
Cash, FDIC Insured Amount | 250,000 | |
Cash, Uninsured Amount | $ 0 | 900,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Date | May 16, 2011 | |
Income Tax Examination, Description | tax position must be more-likely-than not (a greater than 50 percent likelihood of being realized) to be sustained upon examination by taxing authorities. | |
Employee Stock Option [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Future Share Based Compensation Expense Related To Outstanding Options | $ 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | $ 0 | $ 0 |
ACCOUNTS RECEIVABLE (Details)
ACCOUNTS RECEIVABLE (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable under normal 30 day terms | $ 664,928 | $ 1,406,665 |
Financed contracts: | ||
Short-term | 0 | 22,754 |
Current portion of long-term | 2,015,389 | 896,236 |
Long-term, net of current portion | 1,569,285 | 675,683 |
Total accounts receivable | 4,249,612 | 3,001,338 |
Less allowance for doubtful accounts | (185,397) | (101,079) |
Accounts receivable, net | 4,064,215 | 2,900,259 |
Presented on the balance sheet as: | ||
Accounts receivable, net | 2,494,930 | 2,224,576 |
Long-term accounts receivable - financed contracts | $ 1,569,285 | $ 675,683 |
ACCOUNTS RECEIVABLE (Details 1)
ACCOUNTS RECEIVABLE (Details 1) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable allowance, beginning of year | $ 101,079 | $ 112,054 |
Provision adjustment during year | 84,318 | (10,975) |
Write-off | 0 | 0 |
Accounts receivable allowance, end of year | $ 185,397 | $ 101,079 |
ACCOUNTS RECEIVABLE (Details Te
ACCOUNTS RECEIVABLE (Details Textual) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Allowance for Doubtful Accounts Receivable, Current | $ 185,397 | $ 101,079 |
Accounts Receivable, Net, Current, Total | 2,494,930 | 2,224,576 |
Deferred Revenue, Noncurrent | 2,890,467 | 1,090,746 |
Trade Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Allowance for Doubtful Accounts Receivable, Current | 185,397 | |
Financing Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Allowance for Doubtful Accounts Receivable, Current | 0 | 0 |
Accounts Receivable, Net, Current, Total | $ 3,584,684 | $ 1,594,673 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment, Gross | $ 167,669 | $ 106,549 |
Less: accumulated depreciation | (113,135) | (104,411) |
Property, Plant and Equipment, Net | 54,534 | 2,138 |
Office equipment [Member] | ||
Property, Plant and Equipment, Gross | 49,294 | 29,175 |
Vehicles [Member] | ||
Property, Plant and Equipment, Gross | $ 118,375 | $ 77,374 |
PROPERTY AND EQUIPMENT (Detai33
PROPERTY AND EQUIPMENT (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Depreciation | $ 8,725 | $ 13,573 |
LONG-TERM DEBT(Details)
LONG-TERM DEBT(Details) | Dec. 31, 2015USD ($) |
Debt Instrument [Line Items] | |
2,016 | $ 7,096 |
2,017 | 6,697 |
2,018 | 7,102 |
2,019 | 7,532 |
2,020 | 4,884 |
Total | $ 33,311 |
LONG-TERM DEBT (Details Textual
LONG-TERM DEBT (Details Textual) - USD ($) | 1 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2015 | |
Long-term Debt | $ 33,311 | |
Nissan Motor Acceptance Company [Member] | Secured Debt [Member] | ||
Long-term Debt | $ 33,311 | |
Debt Instrument, Maturity Date, Description | September 2,020 | |
Debt Instrument, Face Amount | $ 34,580 | |
Debt Instrument, Interest Rate, Stated Percentage | 5.89% | |
Debt Instrument, Periodic Payment, Total | $ 677 | |
Debt Instrument, Frequency of Periodic Payment | monthly |
OPERATING LEASES (Details)
OPERATING LEASES (Details) | Dec. 31, 2015USD ($) |
2,016 | $ 21,719 |
Total | $ 21,719 |
OPERATING LEASES (Details Textu
OPERATING LEASES (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Leases, Rent Expense, Net | $ 31,556 | $ 31,556 |
Lease Expiration Date | Jun. 30, 2016 | |
Maximum [Member] | ||
Lease And Rental Expense Per Month | $ 3,103 | |
Minimum [Member] | ||
Lease And Rental Expense Per Month | $ 2,727 |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Outstanding and Exercisable Options, Beginning Balance | 10,000 | 60,000 | |
Outstanding and Exercisable Options, Granted | 0 | 0 | |
Outstanding and Exercisable Options, Exercised | 0 | 0 | |
Outstanding and Exercisable Options, Cancelled | 10,000 | 50,000 | |
Outstanding and Exercisable Options, Ending Balance | 0 | 10,000 | 60,000 |
Weighted Average Excercise price, Beginning Balance | $ 1.75 | $ 1.75 | |
Weighted Average Excercise price, Cancelled | 1.75 | ||
Weighted Average Excercise price, Ending Balance | $ 1.75 | $ 1.75 | $ 1.75 |
Weighted Average Remaining Term | 0 years | 1 year | 2 years |
Aggregate Intrinsic Value | $ 0 | $ 0 | $ 0 |
STOCKHOLDERS' EQUITY (Details T
STOCKHOLDERS' EQUITY (Details Textual) - USD ($) | 1 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||
Jan. 31, 2016 | Aug. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Sep. 04, 2015 | Mar. 17, 2015 | Dec. 23, 2014 | Nov. 30, 2010 | Oct. 01, 2001 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Treasury Stock, Shares | 1,000 | 123,469 | 1,000 | |||||||||
Treasury Stock, Value | $ 1,422 | $ 123,542 | $ 1,422 | |||||||||
Stock Repurchased During Period Price Per Share | $ 0.92 | |||||||||||
Allocated Share-based Compensation Expense | $ 6,750 | |||||||||||
Stock Repurchased During Period, Shares | 10,000 | |||||||||||
Stock Repurchased and Retired During Period, Shares | 50,000 | |||||||||||
Stock Repurchased and Retired During Period, Value | $ 44,000 | |||||||||||
Treasury Stock Acquired, Average Cost Per Share | $ 99 | |||||||||||
Common Stock [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Stock Repurchased During Period, Shares | 50,000 | 84,071 | ||||||||||
Stock Repurchase Program [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Treasury Stock, Shares | 141,469 | |||||||||||
Treasury Stock, Value | $ 139,384 | |||||||||||
Stock Repurchased During Period Price Per Share | $ 0.88 | |||||||||||
Stock Repurchase Program, Authorized Amount | $ 50,000 | $ 75,000 | $ 100,000 | |||||||||
Stock Repurchased During Period, Shares | 274,540 | |||||||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 33,155 | |||||||||||
Treasury Stock Acquired, Average Cost Per Share | $ 0.95 | |||||||||||
Stock Repurchase Program [Member] | Treasury Stock [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Treasury Stock Acquired, Average Cost Per Share | $ 0.99 | |||||||||||
Stock Repurchase Program [Member] | Subsequent Event [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Treasury Stock Acquired, Average Cost Per Share | $ 0 | |||||||||||
Employee Stock Option [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Common Stock, Capital Shares Reserved for Future Issuance | 1,000,000 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 70,000 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ 1.75 | |||||||||||
Board of Directors Chairman [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Stock Issued During Period, Shares, Share-based Compensation, Gross | 7,500 | 7,500 | 7,500 | |||||||||
Stock Issued During Period, Value, Share-based Compensation, Gross | $ 4,875 | $ 6,750 | ||||||||||
Allocated Share-based Compensation Expense | $ 4,875 | |||||||||||
Shares Issued, Price Per Share | $ 1.18 | $ 65 | $ 90 | $ 65 | ||||||||
Board of Directors Chairman [Member] | Common Stock [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Stock Issued During Period, Shares, Share-based Compensation, Gross | 7,500 | |||||||||||
Employees [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Treasury Stock, Value | $ 123,542 | |||||||||||
Treasury Stock, Number of Shares Held | 123,469 | |||||||||||
Employees [Member] | Bonuses [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Allocated Share-based Compensation Expense | $ 22,420 | |||||||||||
Shares Issued, Price Per Share | $ 1.18 | |||||||||||
Stock Issued During Period, Shares, Treasury Stock Reissued | 11,500 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Contingency [Line Items] | ||
Current tax expense | $ 7,308 | $ 196,812 |
Deferred tax (benefit) | (281,947) | (189,800) |
Total income tax expense (benefit) | $ (274,000) | $ 7,012 |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Line Items] | ||
Expected federal tax (benefit), Amount | $ (228,900) | $ 13,700 |
Permanent differences, Amount | 10,200 | (7,900) |
State income tax, net of federal tax benefit, Amount | (17,200) | 1,300 |
Foreign tax credit, Amount | (19,100) | 0 |
Other, Amount | (19,000) | (88) |
Total, Amount | $ (274,000) | $ 7,012 |
Expected federal tax (benefit), Percenage | 34.00% | 34.00% |
Permanent differences, Percentage | (1.50%) | (19.60%) |
State income tax, net of federal tax benefit, Percentage | 2.60% | 3.20% |
Foreign tax credit, Percentage | 2.80% | 0.00% |
Other, Percentage | 2.80% | (0.20%) |
Total, Percent | 40.70% | 17.40% |
INCOME TAXES (Details 2)
INCOME TAXES (Details 2) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Current deferred tax asset (liabilities): | ||
Accounts payable and accrued expenses | $ 132,000 | $ 61,000 |
Accounts receivable | (1,572,000) | (1,124,000) |
Allowance for doubtful accounts | 69,000 | 38,000 |
Prepaid expenses | (33,000) | (36,000) |
Deferred revenue | 607,000 | 294,053 |
Net current deferred tax liability | (797,000) | (766,947) |
Long-term deferred tax asset | ||
NOL - federal | 265,000 | 0 |
NOL - State | 38,000 | 7,000 |
Foreign tax credit | 19,000 | 0 |
Book - Tax depreciation | 9,000 | 12,000 |
Net long-term deferred tax asset | 331,000 | 19,000 |
Net deferred tax liability | $ (466,000) | $ (747,947) |
INCOME TAXES (Details Textual)
INCOME TAXES (Details Textual) | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Income Tax Disclosure [Line Items] | |
Operating Loss Carryforwards Expiration Date1 | expires between 2025 and 2035 if not used |
State and Local Jurisdiction [Member] | |
Income Tax Disclosure [Line Items] | |
Operating Loss Carryforwards | $ 682,000 |
Domestic Tax Authority [Member] | |
Income Tax Disclosure [Line Items] | |
Operating Loss Carryforwards | $ 777,000 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Basic and diluted earnings per share calculation: | ||
Net income (loss) to common stockholders | $ (399,271) | $ 33,290 |
Weighted average number of common shares outstanding | 4,591,937 | 4,776,085 |
Basic net income (loss) per share | $ (0.09) | $ 0.01 |
EARNINGS PER SHARE (Details Tex
EARNINGS PER SHARE (Details Textual) | 12 Months Ended |
Dec. 31, 2014shares | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 10,000 |
GEOGRAPHIC CONCENTRATIONS (Deta
GEOGRAPHIC CONCENTRATIONS (Details Textual) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Sales Revenue, Net [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 100.00% | 100.00% |
Accounts Receivable [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 100.00% | 100.00% |
UNITED STATES | Sales Revenue, Net [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 82.00% | 88.00% |
UNITED STATES | Accounts Receivable [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 78.00% | 83.00% |
Caribbean [Member] | Sales Revenue, Net [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 2.00% | 3.00% |
Caribbean [Member] | Accounts Receivable [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 1.00% | 3.00% |
Central America [Member] | Sales Revenue, Net [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 1.00% | 1.00% |
Central America [Member] | Accounts Receivable [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 1.00% | 2.00% |
South America [Member] | Sales Revenue, Net [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 16.00% | 8.00% |
South America [Member] | Accounts Receivable [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 20.00% | 12.00% |
FOREIGN CURRENCY EXCHANGE RAT47
FOREIGN CURRENCY EXCHANGE RATE RISK (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Receivable, Gross, Noncurrent | $ 1,569,285 | $ 675,683 |
Foreign Currency Transaction Gain (Loss), Realized | 22,000 | |
Columbia [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Receivable, Gross, Noncurrent | $ 443,000 |
COMMITMENT AND CONTINGENCIES (D
COMMITMENT AND CONTINGENCIES (Details Textual) | Dec. 31, 2015USD ($) |
Other Commitments [Line Items] | |
Other Commitment, Total | $ 47,000 |