Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2020 | Aug. 12, 2020 | |
Document Information [Line Items] | ||
Entity Registrant Name | Table Trac INC | |
Entity Central Index Key | 0001090396 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Interactive Data Current | Yes | |
Entity Common Stock, Shares Outstanding (in shares) | 4,506,788 | |
Entity Shell Company | false | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Condensed Balance Sheets (Curre
Condensed Balance Sheets (Current Period Unaudited) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
CURRENT ASSETS | ||
Cash | $ 1,507,922 | $ 1,263,762 |
Accounts receivable, net of allowance for doubtful accounts of $47,623 at June 30, 2020 and $198,623 at December 31, 2019 | 2,347,177 | 2,537,892 |
Inventory | 1,955,223 | 1,263,589 |
Prepaid expenses and other current assets | 212,353 | 379,982 |
Income tax receivable | 61,237 | 167,673 |
TOTAL CURRENT ASSETS | 6,083,912 | 5,612,898 |
LONG-TERM ASSETS | ||
Property and equipment, net | 48,514 | 74,149 |
Operating lease right-of-use assets | 49,097 | 77,922 |
Contract and other long-term assets | 776,373 | 1,037,364 |
Long-term accounts receivable - financed contracts | 1,410,185 | 2,253,667 |
TOTAL LONG-TERM ASSETS | 2,284,169 | 3,443,102 |
TOTAL ASSETS | 8,368,081 | 9,056,000 |
CURRENT LIABILITIES | ||
Accounts payable and accrued expenses | 121,820 | 367,730 |
Payroll liabilities | 82,168 | 44,500 |
Current portion of operating lease liabilities | 49,204 | 53,538 |
Current maturities of long-term debt | 208,240 | 0 |
Customer deposits | 258,759 | 253,709 |
TOTAL CURRENT LIABILITIES | 720,191 | 719,477 |
LONG-TERM LIABILITIES | ||
Long-term debt, net of current maturities | 265,160 | 0 |
Operating lease liabilities | 4,027 | 27,867 |
Contract liabilities | 2,281,383 | 3,148,410 |
Deferred tax liability | 433,000 | 543,000 |
TOTAL LIABILITIES | 3,703,761 | 4,438,754 |
STOCKHOLDERS’ EQUITY | ||
Common stock, $0.001 par value; 25,000,000 shares authorized: 4,656,734 shares issued; and 4,506,788 shares outstanding at June 30, 2020 and December 31, 2019. | 4,507 | 4,507 |
Additional paid-in capital | 1,862,282 | 1,847,594 |
Retained earnings | 3,043,162 | 3,010,776 |
Stockholders' Equity before Treasury Stock | 4,909,951 | 4,862,877 |
Treasury stock, 149,946 shares (at cost) at June 30, 2020 and December 31, 2019. | (245,631) | (245,631) |
TOTAL STOCKHOLDERS’ EQUITY | 4,664,320 | 4,617,246 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 8,368,081 | $ 9,056,000 |
Condensed Balance Sheets (Cur_2
Condensed Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Allowance for doubtful accounts | $ 47,623 | $ 198,623 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
Common stock, shares issued (in shares) | 4,656,734 | 4,506,788 |
Common stock, shares outstanding (in shares) | 4,656,734 | 4,506,788 |
Treasury stock, shares (in shares) | 149,946 | 149,946 |
Condensed Statements of Operati
Condensed Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenues | $ 1,212,551 | $ 2,254,339 | $ 2,519,927 | $ 3,622,968 |
Cost of sales | 183,536 | 720,978 | 585,424 | 1,052,848 |
Gross profit | 1,029,015 | 1,533,361 | 1,934,503 | 2,570,120 |
Operating expenses: | ||||
Selling, general and administrative | 1,037,504 | 1,217,112 | 1,970,294 | 2,278,714 |
Income (loss) from operations | (8,489) | 316,249 | (35,791) | 291,406 |
Interest income | 11,263 | 11,514 | 69,377 | 28,312 |
Income before taxes | 2,774 | 327,763 | 33,586 | 319,718 |
Income tax expense (benefit) | (30,800) | 61,000 | 1,200 | 45,000 |
Net income | $ 33,574 | $ 266,763 | $ 32,386 | $ 274,718 |
Basic net income per share (in dollars per share) | $ 0.01 | $ 0.06 | $ 0.01 | $ 0.06 |
Diluted net income per share (in dollars per share) | $ 0.01 | $ 0.06 | $ 0.01 | $ 0.06 |
Weighted-average shares outstanding - basic (in shares) | 4,486,788 | 4,498,668 | 4,486,788 | 4,498,668 |
Weighted-average shares outstanding - diluted (in shares) | 4,492,435 | 4,505,354 | 4,493,684 | 4,507,736 |
Condensed Statements of Stockho
Condensed Statements of Stockholders' Equity (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Total |
Balance at Dec. 31, 2018 | $ 4,529 | $ 1,795,955 | $ 2,194,778 | $ (196,526) | $ 3,798,736 |
Stock compensation expense | 0 | 12,407 | 0 | 0 | 12,407 |
Net income (loss) | 0 | 0 | 7,955 | 0 | 7,955 |
Balance at Mar. 31, 2019 | 4,529 | 1,808,362 | 2,202,733 | (196,526) | 3,819,098 |
Balance at Dec. 31, 2018 | 4,529 | 1,795,955 | 2,194,778 | (196,526) | 3,798,736 |
Net income (loss) | 274,718 | ||||
Balance at Jun. 30, 2019 | 4,529 | 1,820,767 | 2,469,496 | (196,526) | 4,098,266 |
Balance at Mar. 31, 2019 | 4,529 | 1,808,362 | 2,202,733 | (196,526) | 3,819,098 |
Stock compensation expense | 0 | 12,405 | 0 | 0 | 12,405 |
Net income (loss) | 0 | 0 | 266,763 | 0 | 266,763 |
Balance at Jun. 30, 2019 | 4,529 | 1,820,767 | 2,469,496 | (196,526) | 4,098,266 |
Balance at Dec. 31, 2019 | 4,507 | 1,847,594 | 3,010,776 | (245,631) | 4,617,246 |
Stock compensation expense | 0 | 7,344 | 0 | 0 | 7,344 |
Net income (loss) | 0 | 0 | (1,188) | 0 | (1,188) |
Balance at Mar. 31, 2020 | 4,507 | 1,854,938 | 3,009,588 | (245,631) | 4,623,402 |
Balance at Dec. 31, 2019 | 4,507 | 1,847,594 | 3,010,776 | (245,631) | 4,617,246 |
Net income (loss) | 32,386 | ||||
Balance at Jun. 30, 2020 | 4,507 | 1,862,282 | 3,043,162 | (245,631) | 4,664,320 |
Balance at Mar. 31, 2020 | 4,507 | 1,854,938 | 3,009,588 | (245,631) | 4,623,402 |
Stock compensation expense | 0 | 7,344 | 0 | 0 | 7,344 |
Net income (loss) | 0 | 0 | 33,574 | 0 | 33,574 |
Balance at Jun. 30, 2020 | $ 4,507 | $ 1,862,282 | $ 3,043,162 | $ (245,631) | $ 4,664,320 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
OPERATING ACTIVITIES | ||
Net income (loss) | $ 32,386 | $ 274,718 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 25,635 | 22,121 |
Gain on sale of asset | 0 | (25,713) |
Deferred income taxes | (110,000) | 20,000 |
Stock compensation expense | 14,688 | 24,812 |
Bad debt expense | 91,629 | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 942,568 | (133,560) |
Inventory | (691,634) | (638,805) |
Prepaid expenses and other assets | 457,445 | (15,308) |
Accounts payable and accrued expenses | (274,084) | (164,659) |
Payroll liabilities | 37,668 | 116,120 |
Contract liabilities and customer deposits | (861,977) | (497,691) |
Income taxes payable (receivable) | 106,436 | (71,300) |
Net cash used in operating activities | (229,240) | (1,089,265) |
INVESTING ACTIVITIES | ||
Proceeds from sale of Colombian receivables | 0 | 7,000 |
Net cash used in financing activities | 0 | 7,000 |
FINANCING ACTIVITIES | ||
Payments on notes payable | 0 | (2,221) |
Proceeds from Paycheck Protenction Plan loan | 473,400 | 0 |
Net cash provided by (used in) financing activities | 473,400 | (2,221) |
NET INCREASE (DECREASE) IN CASH | 244,160 | (1,084,486) |
CASH | ||
Beginning of period | 1,263,762 | 1,290,797 |
End of period | 1,507,922 | 206,311 |
Non-cash investing and financing activities: | ||
Note from sale of Colombian receivables | 800 | 800 |
Supplemental cash flow information: | ||
Operating cash outflow for operating lease | $ 31,491 | $ 31,038 |
Note 1 - Nature of Business and
Note 1 - Nature of Business and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block] | 1. Nature of Business and Summary of Significant Accounting Policies – Basis of Presentation The accompanying unaudited condensed financial statements of Table Trac, Inc. (the “Company,” or “Table Trac”) have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions for Form 10 10 X. June 30, 2020 three six June 30, 2020 2019 Certain prior year amounts have been reclassified for consistency with the current year presentation. An adjustment has been made to the Consolidated Statements of Operations for fiscal quarter ended June 30, 2020 no The accompanying financial statements should be read in conjunction with the financial statements and notes included in the Table Trac Annual Report on Form 10 December 31, 2019 Nature of Business Table Trac was formed under the laws of the State of Nevada in June 1995. Table Trac 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 separate license and service contracts. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the 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. The Company's use of estimates and assumptions include: for revenue recognition, determining the nature and timing of satisfaction of performance obligations, and determining the standalone selling price (“SSP”) of performance obligations, variable consideration, and other obligations, realizability of accounts receivable, the valuation of deferred tax assets and liabilities, deferred revenue and costs, and inventory valuation. Actual results could differ from those estimates, and the difference could be significant. The Company's significant accounting policies are described in Note 1 10 December 31, 2019 Revenue The Company derives revenues from the sales of systems, licenses and maintenance fees, and services, and rental agreements. System Sales Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. We enter into contracts that can include various combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. Revenue is recognized net of any taxes collected, when applicable from customers, which are subsequently remitted to governmental authorities. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is a unit of account in ASC 606. not not 12 not Maintenance Revenue Maintenance revenue is recognized ratably over the contract period. The SSP for maintenance is based upon the renewal rate for contracted services. Service Revenue and Other Revenue Service revenue is recognized after the services are performed and collection of the resulting receivable is reasonably assured. The SSP for service revenue is established based upon actual selling prices for the services or prior similar arrangements. The Company offers qualified customers a licensing agreement. Licensing revenue is recognized after the intellectual property (CMS system), the performance obligation, is delivered and in its operational and functional state. The SSP for licensing revenue is established based upon actual selling prices for the license. The Company may The following table summarizes disaggregated revenues by major product line for the three June 30, 2020 2019 Three Months Ended June 30, 2020 2019 2020 2019 (percent of revenues) System revenue $ 551,718 $ 1,498,786 45.5 % 66.5 % Maintenance revenue 603,648 691,703 49.8 % 30.7 % Service and other revenue 57,185 63,850 4.7 % 2.8 % Total revenues $ 1,212,551 $ 2,254,339 100.0 % 100.0 % The following table summarizes disaggregated revenues by major product line for the six June 30, 2020 2019 Six Months Ended June 30, 2020 2019 2020 2019 (percent of revenues) System revenue $ 1,115,850 $ 2,157,381 44.3 % 59.5 % Maintenance revenue 1,314,475 1,364,272 52.1 % 37.7 % Service and other revenue 89,602 101,315 3.6 % 2.8 % Total revenues $ 2,519,927 $ 3,622,968 100.0 % 100.0 % See Major Customers for disaggregated revenue information about primary geographical markets. Significant Judgments Contracts with customers often include promises to transfer multiple products and services to a customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may Judgment is required to determine the SSP for each distinct performance obligation. We use a single amount to estimate SSP for items that are not In instances where SSP is not not may one may We evaluated the contractual payment terms of all system sales generated during the year to determine the proper recognition or deferral of revenue. We believe the twelve 67% We evaluate the interest rates in customer contracts with extended payment terms, representing a significant financing component. These rates range from approximately 1% 6% Deferred System Sales Costs Incremental costs to obtain and fulfill a contract are deferred and amortized over the related system contract term. These costs are recognized on a straight-line basis over the term of the contract which is generally 18 48 $776,373 $1,037,364 June 30, 2020 December 31, 2019 Accounts Receivable / Allowance for Doubtful Accounts Accounts receivable are initially recorded at the invoiced amount and carried on the balance sheet 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 twelve twelve may not no may not not Major Customers For the six June 30, 2020 one 13% one 31% six June 30, 2019 June 30, 2020 one 38% two 37% June 30, 2019 six June 30, 2020 2019 For the Six Months Ended June 30, 2020 2019 % Revenues % AR % Revenues % AR Major 13.4 % 37.7 % 30.9 % 36.5 % All Others 86.6 % 62.3 % 69.1 % 63.5 % Total 100.0 % 100.0 % 100.0 % 100.0 % For the six June 30, 2020 2019 91.1% 87.7% The following table summarizes the major customer's information for the three June 30, 2020 three June 30, 2019: For the Three Months Ended June 30, 2020 2019 % Revenues % Revenues Major 32.8 % 40.3 % All Others 67.2 % 59.7 % Total 100.0 % 100.0 % three June 30, 2020 2019 89.3% 92.4% A major customer is defined as any customer that represents at least 10% Inventory Inventory, consisting of finished goods, is stated at the lower of cost or net realizable value. The average cost method, which approximates the first first June 30, 2020 $1,955,223, $680. $1,263,589 December 31, 2019 $7,742. no June 30, 2020 December 31, 2019 Research and Development The Company expenses all costs related to research and development as incurred. Research and development expense were $39,695 $14,244 six June 30, 2020 2019 |
Note 2 - Accounts Receivable
Note 2 - Accounts Receivable | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 2. Accounts Receivable – Accounts receivable consisted of the following at: June 30, December 31, 2020 2019 Accounts receivable under normal 30-day terms $ 1,442,900 $ 1,649,695 Financed contracts: Current portion of long-term 951,900 1,086,820 Long-term, net of current portion 1,410,185 2,253,667 Total accounts receivable 3,804,985 4,990,182 Less allowance for doubtful accounts (47,623 ) (198,623 ) Accounts receivable, net $ 3,757,362 $ 4,791,559 Presented on the balance sheet as: Accounts receivable, net $ 2,347,177 $ 2,537,892 Long-term accounts receivable - financed contracts 1,410,185 2,253,667 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 in the trade and financed receivables, but that have not Accounts receivable includes financed contracts at June 30, 2020 December 31, 2019 $2,362,085 $3,340,487, $2,281,383 $3,148,410, A roll-forward of the Company's allowance for doubtful accounts for the periods presented is as follows: June 30, December 31, 2020 2019 Accounts receivable allowance, beginning of period $ 198,623 $ 165,840 Provision adjustment 34,378 115,000 Write-off (185,378 ) (82,217 ) Accounts receivable allowance, end of period $ 47,623 $ 198,623 The allowance for doubtful accounts as of June 30, 2020 $47,623 $0 December 31, 2019 $42,623 $156,000 three June 30, 2020 $57,000 not |
Note 3 - Operating Leases
Note 3 - Operating Leases | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Lessee, Operating Leases [Text Block] | 3. Operating Leases – We lease space under non-cancelable operating leases for our two not not Our leases include one Our leases do not 5% The cost components of our operating leases were $31,491 15,630 three six June 30, 2020 Maturities of our lease liabilities for all operating leases are as follows as of June 30, 2020 Leased Facilities 2020 26,850 2021 28,632 Total Lease Payments 55,482 Less: Interest (2,251 ) Present value of lease liabilities $ 53,231 The weighted average remaining lease terms equals .67 June 30, 2020 |
Note 4 - Bank Financing
Note 4 - Bank Financing | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 4. Bank Financing – Revolving Credit Line In February 2020, $500,000 February 1, 2021. no six June 30, 2020 4.0% three six June 30, 2020 Paycheck Protection Program Loan On April 14, 2020, $473,400 2 1% 6 60 No not Estimated maturities of long-term debt at June 30, 2020 twelve June 30: 2021 $ 208,240 2022 265,160 Total Debt 473,400 |
Note 5 - Stockholders' Equity
Note 5 - Stockholders' Equity | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 5. Stockholders' Equity – Stock Repurchase Program During the six June 30, 2020 not Stock Compensation On January 8, 2018, 50,000 four 20,000 January 8, 2019 10,000 $117,500 The unvested stock compensation expense is expected to be recognized over a weighted average period of approximately two June 30, 2020 $51,500. The Company has no June 30, 2020 2019 The Company had 20,000 30,000 June 30, 2020 December 31, 2019 |
Note 6 - Income Tax
Note 6 - Income Tax | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 6. Income Tax – The Company accounts for income taxes by following the asset and liability approach to accounting for income taxes. Deferred tax assets and liabilities represent the future tax consequences of the differences between the financial statement carrying amounts of assets and liabilities versus the tax basis of assets and liabilities. Under this method, deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carryforwards. Deferred tax liabilities are recognized for taxable temporary differences. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not not not not The Company files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. Based on its evaluation, the Company believes that it has no December 31, 2016 2019, June 30, 2020 not 12 The Company may |
Note 7 - Earnings Per Share
Note 7 - Earnings Per Share | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 7. Earnings Per Share – The Company computes earnings per share under two The following table provides a reconciliation of the numerators and denominators used in calculating basic and diluted earnings per share for the three six June 30, 2020 2019 For the Six Months Ended June 30, 2020 2019 Basic and diluted earnings per share calculation: Net income to common stockholders $ 32,386 $ 274,718 Weighted average number of common shares outstanding - basic $ 4,486,788 $ 4,498,668 Basic net income per share $ 0.01 $ 0.06 Weighted average number of common shares outstanding - diluted $ 4,493,684 $ 4,507,736 Diluted net income per share $ 0.01 $ 0.06 For the Three Months Ended June 30, 2020 2019 Basic and diluted earnings per share calculation: Net income to common stockholders $ 33,574 $ 266,763 Weighted average number of common shares outstanding - basic $ 4,486,788 $ 4,498,668 Basic net income per share $ 0.01 $ 0.06 Weighted average number of common shares outstanding - diluted $ 4,492,435 $ 4,505,354 Diluted net income per share $ 0.01 $ 0.06 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The accompanying unaudited condensed financial statements of Table Trac, Inc. (the “Company,” or “Table Trac”) have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions for Form 10 10 X. June 30, 2020 three six June 30, 2020 2019 Certain prior year amounts have been reclassified for consistency with the current year presentation. An adjustment has been made to the Consolidated Statements of Operations for fiscal quarter ended June 30, 2020 no The accompanying financial statements should be read in conjunction with the financial statements and notes included in the Table Trac Annual Report on Form 10 December 31, 2019 |
Nature of Business [Policy Text Block] | Nature of Business Table Trac was formed under the laws of the State of Nevada in June 1995. Table Trac 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 separate license and service contracts. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the 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. The Company's use of estimates and assumptions include: for revenue recognition, determining the nature and timing of satisfaction of performance obligations, and determining the standalone selling price (“SSP”) of performance obligations, variable consideration, and other obligations, realizability of accounts receivable, the valuation of deferred tax assets and liabilities, deferred revenue and costs, and inventory valuation. Actual results could differ from those estimates, and the difference could be significant. The Company's significant accounting policies are described in Note 1 10 December 31, 2019 |
Revenue [Policy Text Block] | Revenue The Company derives revenues from the sales of systems, licenses and maintenance fees, and services, and rental agreements. System Sales Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. We enter into contracts that can include various combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. Revenue is recognized net of any taxes collected, when applicable from customers, which are subsequently remitted to governmental authorities. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is a unit of account in ASC 606. not not 12 not Maintenance Revenue Maintenance revenue is recognized ratably over the contract period. The SSP for maintenance is based upon the renewal rate for contracted services. Service Revenue and Other Revenue Service revenue is recognized after the services are performed and collection of the resulting receivable is reasonably assured. The SSP for service revenue is established based upon actual selling prices for the services or prior similar arrangements. The Company offers qualified customers a licensing agreement. Licensing revenue is recognized after the intellectual property (CMS system), the performance obligation, is delivered and in its operational and functional state. The SSP for licensing revenue is established based upon actual selling prices for the license. The Company may The following table summarizes disaggregated revenues by major product line for the three June 30, 2020 2019 Three Months Ended June 30, 2020 2019 2020 2019 (percent of revenues) System revenue $ 551,718 $ 1,498,786 45.5 % 66.5 % Maintenance revenue 603,648 691,703 49.8 % 30.7 % Service and other revenue 57,185 63,850 4.7 % 2.8 % Total revenues $ 1,212,551 $ 2,254,339 100.0 % 100.0 % The following table summarizes disaggregated revenues by major product line for the six June 30, 2020 2019 Six Months Ended June 30, 2020 2019 2020 2019 (percent of revenues) System revenue $ 1,115,850 $ 2,157,381 44.3 % 59.5 % Maintenance revenue 1,314,475 1,364,272 52.1 % 37.7 % Service and other revenue 89,602 101,315 3.6 % 2.8 % Total revenues $ 2,519,927 $ 3,622,968 100.0 % 100.0 % See Major Customers for disaggregated revenue information about primary geographical markets. Significant Judgments Contracts with customers often include promises to transfer multiple products and services to a customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may Judgment is required to determine the SSP for each distinct performance obligation. We use a single amount to estimate SSP for items that are not In instances where SSP is not not may one may We evaluated the contractual payment terms of all system sales generated during the year to determine the proper recognition or deferral of revenue. We believe the twelve 67% We evaluate the interest rates in customer contracts with extended payment terms, representing a significant financing component. These rates range from approximately 1% 6% |
Deferred System Sales Costs [Policy Text Block] | Deferred System Sales Costs Incremental costs to obtain and fulfill a contract are deferred and amortized over the related system contract term. These costs are recognized on a straight-line basis over the term of the contract which is generally 18 48 $776,373 $1,037,364 June 30, 2020 December 31, 2019 |
Receivables, Trade and Other Accounts Receivable, Allowance for Doubtful Accounts, Policy [Policy Text Block] | Accounts Receivable / Allowance for Doubtful Accounts Accounts receivable are initially recorded at the invoiced amount and carried on the balance sheet 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 twelve twelve may not no may not not |
Major Customers, Policy [Policy Text Block] | Major Customers For the six June 30, 2020 one 13% one 31% six June 30, 2019 June 30, 2020 one 38% two 37% June 30, 2019 six June 30, 2020 2019 For the Six Months Ended June 30, 2020 2019 % Revenues % AR % Revenues % AR Major 13.4 % 37.7 % 30.9 % 36.5 % All Others 86.6 % 62.3 % 69.1 % 63.5 % Total 100.0 % 100.0 % 100.0 % 100.0 % For the six June 30, 2020 2019 91.1% 87.7% The following table summarizes the major customer's information for the three June 30, 2020 three June 30, 2019: For the Three Months Ended June 30, 2020 2019 % Revenues % Revenues Major 32.8 % 40.3 % All Others 67.2 % 59.7 % Total 100.0 % 100.0 % three June 30, 2020 2019 89.3% 92.4% A major customer is defined as any customer that represents at least 10% |
Inventory, Policy [Policy Text Block] | Inventory Inventory, consisting of finished goods, is stated at the lower of cost or net realizable value. The average cost method, which approximates the first first June 30, 2020 $1,955,223, $680. $1,263,589 December 31, 2019 $7,742. no June 30, 2020 December 31, 2019 |
Research and Development Expense, Policy [Policy Text Block] | Research and Development The Company expenses all costs related to research and development as incurred. Research and development expense were $39,695 $14,244 six June 30, 2020 2019 |
Note 1 - Nature of Business a_2
Note 1 - Nature of Business and Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Three Months Ended June 30, 2020 2019 2020 2019 (percent of revenues) System revenue $ 551,718 $ 1,498,786 45.5 % 66.5 % Maintenance revenue 603,648 691,703 49.8 % 30.7 % Service and other revenue 57,185 63,850 4.7 % 2.8 % Total revenues $ 1,212,551 $ 2,254,339 100.0 % 100.0 % Six Months Ended June 30, 2020 2019 2020 2019 (percent of revenues) System revenue $ 1,115,850 $ 2,157,381 44.3 % 59.5 % Maintenance revenue 1,314,475 1,364,272 52.1 % 37.7 % Service and other revenue 89,602 101,315 3.6 % 2.8 % Total revenues $ 2,519,927 $ 3,622,968 100.0 % 100.0 % |
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block] | For the Six Months Ended June 30, 2020 2019 % Revenues % AR % Revenues % AR Major 13.4 % 37.7 % 30.9 % 36.5 % All Others 86.6 % 62.3 % 69.1 % 63.5 % Total 100.0 % 100.0 % 100.0 % 100.0 % For the Three Months Ended June 30, 2020 2019 % Revenues % Revenues Major 32.8 % 40.3 % All Others 67.2 % 59.7 % Total 100.0 % 100.0 % |
Note 2 - Accounts Receivable (T
Note 2 - Accounts Receivable (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Notes Tables | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | June 30, December 31, 2020 2019 Accounts receivable under normal 30-day terms $ 1,442,900 $ 1,649,695 Financed contracts: Current portion of long-term 951,900 1,086,820 Long-term, net of current portion 1,410,185 2,253,667 Total accounts receivable 3,804,985 4,990,182 Less allowance for doubtful accounts (47,623 ) (198,623 ) Accounts receivable, net $ 3,757,362 $ 4,791,559 Presented on the balance sheet as: Accounts receivable, net $ 2,347,177 $ 2,537,892 Long-term accounts receivable - financed contracts 1,410,185 2,253,667 |
Accounts Receivable, Allowance for Credit Loss [Table Text Block] | June 30, December 31, 2020 2019 Accounts receivable allowance, beginning of period $ 198,623 $ 165,840 Provision adjustment 34,378 115,000 Write-off (185,378 ) (82,217 ) Accounts receivable allowance, end of period $ 47,623 $ 198,623 |
Note 3 - Operating Leases (Tabl
Note 3 - Operating Leases (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Notes Tables | |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Leased Facilities 2020 26,850 2021 28,632 Total Lease Payments 55,482 Less: Interest (2,251 ) Present value of lease liabilities $ 53,231 |
Note 4 - Bank Financing (Tables
Note 4 - Bank Financing (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Notes Tables | |
Schedule of Maturities of Long-term Debt [Table Text Block] | 2021 $ 208,240 2022 265,160 Total Debt 473,400 |
Note 7 - Earnings Per Share (Ta
Note 7 - Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | For the Six Months Ended June 30, 2020 2019 Basic and diluted earnings per share calculation: Net income to common stockholders $ 32,386 $ 274,718 Weighted average number of common shares outstanding - basic $ 4,486,788 $ 4,498,668 Basic net income per share $ 0.01 $ 0.06 Weighted average number of common shares outstanding - diluted $ 4,493,684 $ 4,507,736 Diluted net income per share $ 0.01 $ 0.06 For the Three Months Ended June 30, 2020 2019 Basic and diluted earnings per share calculation: Net income to common stockholders $ 33,574 $ 266,763 Weighted average number of common shares outstanding - basic $ 4,486,788 $ 4,498,668 Basic net income per share $ 0.01 $ 0.06 Weighted average number of common shares outstanding - diluted $ 4,492,435 $ 4,505,354 Diluted net income per share $ 0.01 $ 0.06 |
Note 1 - Nature of Business a_3
Note 1 - Nature of Business and Summary of Significant Accounting Policies (Details Textual) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020USD ($) | Jun. 30, 2019 | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Revenue, Remaining Performance Obligation, Collection Threshold Next Twelve Months, Percentage | 67.00% | 67.00% | |||
Inventory, Net, Total | $ 1,955,223 | $ 1,955,223 | $ 1,263,589 | ||
Inventory, Work in Process, Gross | 680 | 680 | 7,742 | ||
Inventory Valuation Reserves, Ending Balance | $ 0 | 0 | 0 | ||
Research and Development Expense, Total | $ 39,695 | $ 14,244 | |||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | |||||
Number of Major Customers | 1 | 1 | |||
Concentration Risk, Percentage | 100.00% | 100.00% | 100.00% | 100.00% | |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | One Customer [Member] | |||||
Concentration Risk, Percentage | 13.00% | ||||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Two Customers [Member] | |||||
Concentration Risk, Percentage | 31.00% | ||||
Revenue Benchmark [Member] | Geographic Concentration Risk [Member] | UNITED STATES | |||||
Concentration Risk, Percentage | 89.30% | 92.40% | 91.10% | 87.70% | |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||||
Number of Major Customers | 1 | 2 | |||
Concentration Risk, Percentage | 100.00% | 100.00% | |||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | One Customer [Member] | |||||
Concentration Risk, Percentage | 38.00% | ||||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Two Customers [Member] | |||||
Concentration Risk, Percentage | 37.00% | ||||
System [Member] | Contract and Other Long-term Assets [Member] | |||||
Capitalized Contract Cost, Net, Total | $ 776,373 | $ 776,373 | $ 1,037,364 | ||
Minimum [Member] | |||||
Contract with Customer, Liability, Interest Rate | 1.00% | 1.00% | |||
Minimum [Member] | System [Member] | |||||
Deferred System Sales Costs, Remaining Amortization Period (Month) | 1 year 180 days | 1 year 180 days | |||
Maximum [Member] | |||||
Contract with Customer, Liability, Interest Rate | 6.00% | 6.00% | |||
Maximum [Member] | System [Member] | |||||
Deferred System Sales Costs, Remaining Amortization Period (Month) | 4 years | 4 years |
Note 1 - Nature of Business a_4
Note 1 - Nature of Business and Summary of Significant Accounting Policies - Disaggregated Revenues by Major Product Line (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Total revenues | $ 1,212,551 | $ 2,254,339 | $ 2,519,927 | $ 3,622,968 |
Percent of revenues | 100.00% | 100.00% | 100.00% | 100.00% |
System [Member] | ||||
Total revenues | $ 551,718 | $ 1,498,786 | $ 1,115,850 | $ 2,157,381 |
Percent of revenues | 45.50% | 66.50% | 44.30% | 59.50% |
Maintenance [Member] | ||||
Total revenues | $ 603,648 | $ 691,703 | $ 1,314,475 | $ 1,364,272 |
Percent of revenues | 49.80% | 30.70% | 52.10% | 37.70% |
Service and Other [Member] | ||||
Total revenues | $ 57,185 | $ 63,850 | $ 89,602 | $ 101,315 |
Percent of revenues | 4.70% | 2.80% | 3.60% | 2.80% |
Note 1 - Nature of Business a_5
Note 1 - Nature of Business and Summary of Significant Accounting Policies - Major Customers (Details) - Customer Concentration Risk [Member] | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenue Benchmark [Member] | ||||
Percent of revenue | 100.00% | 100.00% | 100.00% | 100.00% |
Revenue Benchmark [Member] | Major Customers [Member] | ||||
Percent of revenue | 32.80% | 40.30% | 13.40% | 30.90% |
Revenue Benchmark [Member] | Other Customer [Member] | ||||
Percent of revenue | 67.20% | 59.70% | 86.60% | 69.10% |
Accounts Receivable [Member] | ||||
Percent of revenue | 100.00% | 100.00% | ||
Accounts Receivable [Member] | Major Customers [Member] | ||||
Percent of revenue | 37.70% | 36.50% | ||
Accounts Receivable [Member] | Other Customer [Member] | ||||
Percent of revenue | 62.30% | 63.50% |
Note 2 - Accounts Receivable (D
Note 2 - Accounts Receivable (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
Accounts Receivable, after Allowance for Credit Loss, Current, Total | $ 2,347,177 | $ 2,347,177 | $ 2,537,892 |
Contract with Customer, Liability, Noncurrent | 2,281,383 | 2,281,383 | 3,148,410 |
Accounts Receivable, Allowance for Credit Loss, Current | 47,623 | 47,623 | 198,623 |
Accounts Receivable, Allowance for Credit Loss, Writeoff | 57,000 | 185,378 | 82,217 |
Financed Contract [Member] | |||
Accounts Receivable, after Allowance for Credit Loss, Current, Total | 2,362,085 | 2,362,085 | 3,340,487 |
Accounts Receivable, Allowance for Credit Loss, Current | 0 | 0 | 156,000 |
Trade Accounts Receivable [Member] | |||
Accounts Receivable, Allowance for Credit Loss, Current | $ 47,623 | $ 47,623 | $ 42,623 |
Note 2 - Accounts Receivable -
Note 2 - Accounts Receivable - Accounts Receivable (Details) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Accounts receivable under normal 30-day terms | $ 1,442,900 | $ 1,649,695 |
Financed contracts: | ||
Current portion of long-term | 951,900 | 1,086,820 |
Long-term, net of current portion | 1,410,185 | 2,253,667 |
Total accounts receivable | 3,804,985 | 4,990,182 |
Less allowance for doubtful accounts | (47,623) | (198,623) |
Accounts receivable, net | 3,757,362 | 4,791,559 |
Statement of Financial Position [Abstract] | ||
Accounts Receivable, after Allowance for Credit Loss, Current, Total | 2,347,177 | 2,537,892 |
Long-term accounts receivable - financed contracts | $ 1,410,185 | $ 2,253,667 |
Note 2 - Accounts Receivable _2
Note 2 - Accounts Receivable - Allowance for Doubtful Accounts (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
Accounts receivable allowance | $ 198,623 | $ 165,840 | |
Provision adjustment | 34,378 | 115,000 | |
Write-off | $ (57,000) | (185,378) | (82,217) |
Accounts receivable allowance | $ 47,623 | $ 47,623 | $ 198,623 |
Note 3 - Operating Leases (Deta
Note 3 - Operating Leases (Details Textual) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2020USD ($) | Jun. 30, 2020USD ($) | |
Operating Lease, Weighted Average Discount Rate, Percent | 5.00% | 5.00% |
Operating Lease, Cost | $ 31,491 | $ 15,630 |
Operating Lease, Weighted Average Remaining Lease Term (Year) | 244 days | 244 days |
Note 3 - Operating Leases - Mat
Note 3 - Operating Leases - Maturities of Lease (Details) | Jun. 30, 2020USD ($) |
2020 | $ 26,850 |
2021 | 28,632 |
Total Lease Payments | 55,482 |
Less: Interest | (2,251) |
Present value of lease liabilities | $ 53,231 |
Note 4 - Bank Financing (Detail
Note 4 - Bank Financing (Details Textual) - USD ($) | Jun. 30, 2020 | Apr. 14, 2020 | Feb. 28, 2020 |
Line of Credit Facility, Interest Rate at Period End | 4.00% | ||
SBA CARES Act Paycheck Protection Program [Member] | |||
Debt Instrument, Face Amount | $ 473,400 | ||
Revolving Credit Facility [Member] | General Credit Agreement [Member] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 500,000 | ||
Long-term Line of Credit, Total | $ 0 |
Note 4 - Bank Financing - Matur
Note 4 - Bank Financing - Maturities of Long-term Debt (Details) | Jun. 30, 2020USD ($) |
2021 | $ 208,240 |
2022 | 265,160 |
Total Debt | $ 473,400 |
Note 5 - Stockholders' Equity (
Note 5 - Stockholders' Equity (Details Textual) - USD ($) | Jan. 08, 2018 | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 |
Treasury Stock, Shares, Acquired (in shares) | 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance (in shares) | 0 | 0 | ||
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 50,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 4 years | |||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 117,500 | $ 51,500 | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 2 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance (in shares) | 20,000 | 30,000 | ||
Restricted Stock [Member] | Share-based Payment Arrangement, Tranche One [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period (in shares) | 20,000 | |||
Restricted Stock [Member] | Share-based Payment Arrangement, Tranche Two [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period (in shares) | 10,000 | |||
Restricted Stock [Member] | Share-based Payment Arrangement, Tranche Three [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period (in shares) | 10,000 | |||
Restricted Stock [Member] | Share-based Payment, Tranche Four [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period (in shares) | 10,000 |
Note 6 - Income Tax (Details Te
Note 6 - Income Tax (Details Textual) | 6 Months Ended |
Jun. 30, 2020 | |
Open Tax Year | 2016 2017 2018 2019 |
Note 7 - Earnings Per Share - B
Note 7 - Earnings Per Share - Basic and Diluted Earnings Per Share (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Basic and diluted earnings per share calculation: | ||||
Net income to common stockholders | $ 33,574 | $ 266,763 | $ 32,386 | $ 274,718 |
Weighted average number of common shares outstanding - basic (in shares) | 4,486,788 | 4,498,668 | 4,486,788 | 4,498,668 |
Basic net income per share (in dollars per share) | $ 0.01 | $ 0.06 | $ 0.01 | $ 0.06 |
Weighted average number of common shares outstanding - diluted (in shares) | 4,492,435 | 4,505,354 | 4,493,684 | 4,507,736 |
Diluted net income per share (in dollars per share) | $ 0.01 | $ 0.06 | $ 0.01 | $ 0.06 |