Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2022 | Nov. 10, 2022 | |
Document Information [Line Items] | ||
Entity Central Index Key | 0001090396 | |
Entity Registrant Name | Table Trac INC | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2022 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-32987 | |
Entity Incorporation, State or Country Code | NV | |
Entity Tax Identification Number | 88-0336568 | |
Entity Address, Address Line One | 6101 Baker Road, Suite 206 | |
Entity Address, City or Town | Minnetonka | |
Entity Address, State or Province | MN | |
Entity Address, Postal Zip Code | 55345 | |
City Area Code | 952 | |
Local Phone Number | 548-8877 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 4,621,988 |
Condensed Balance Sheets (Curre
Condensed Balance Sheets (Current Period Unaudited) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 4,673,958 | $ 4,945,913 |
Accounts receivable, net of allowance for doubtful accounts of $56,786 and $61,376 at September 30, 2022 and December 31, 2021, respectively. | 1,799,184 | 1,017,533 |
Inventory, net | 1,780,571 | 1,582,358 |
Prepaid expenses | 410,859 | 799,524 |
Net investment in sales type leases - current | 41,176 | 39,369 |
Income tax receivable | 82,627 | 0 |
TOTAL CURRENT ASSETS | 8,788,375 | 8,384,697 |
LONG-TERM ASSETS | ||
Accounts receivable - Long-term | 869,819 | 288,665 |
Property and equipment, net | 0 | 7,879 |
Net investment in sales type leases - long term | 106,226 | 137,337 |
Deferred tax asset | 0 | 9,000 |
Operating lease right-of-use assets | 172,201 | 174,096 |
TOTAL LONG-TERM ASSETS | 1,148,246 | 616,977 |
TOTAL ASSETS | 9,936,621 | 9,001,674 |
CURRENT LIABILITIES | ||
Accounts payable and accrued expenses | 371,794 | 258,764 |
Payroll liabilities | 24,468 | 26,370 |
Customer deposits | 1,266,878 | 1,576,000 |
Current portion of operating lease liabilities | 55,688 | 51,046 |
Accrued income taxes | 0 | 438,022 |
TOTAL CURRENT LIABILITIES | 1,718,828 | 2,350,202 |
LONG-TERM LIABILITIES | ||
Operating lease liabilities | 113,770 | 124,114 |
Deferred tax liability | 191,000 | 0 |
TOTAL LIABILITIES | 2,023,598 | 2,474,316 |
STOCKHOLDERS’ EQUITY | ||
Common stock, $0.001 par value; 25,000,000 shares authorized: 4,756,734 and 4,656,734 shares issued at September 30, 2022 and December 31, 2021, respectively; and 4,621,988 and 4,521,988 shares outstanding at September 30, 2022 and December 31, 2021, respectively. | 4,622 | 4,522 |
Additional paid-in capital | 2,064,060 | 1,988,137 |
Retained earnings | 6,077,940 | 4,768,298 |
Stockholders' Equity before Treasury Stock | 8,146,622 | 6,760,957 |
Treasury stock, 134,746 shares (at cost) at September 30, 2022 and December 31, 2021. | (233,599) | (233,599) |
TOTAL STOCKHOLDERS’ EQUITY | 7,913,023 | 6,527,358 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 9,936,621 | $ 9,001,674 |
Condensed Balance Sheets (Cur_2
Condensed Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Allowance for doubtful accounts | $ 56,786 | $ 61,376 |
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) | 4,756,734 | 4,656,734 |
Common stock, shares outstanding (in shares) | 4,621,988 | 4,521,988 |
Treasury stock, shares (in shares) | 134,746 | 134,746 |
Condensed Statements of Operati
Condensed Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenues | $ 2,301,329 | $ 1,449,881 | $ 8,112,167 | $ 5,073,900 |
Cost of sales | 865,684 | 407,174 | 3,129,197 | 1,201,035 |
Gross profit | 1,435,645 | 1,042,707 | 4,982,970 | 3,872,865 |
Operating expenses: | ||||
Selling, general and administrative | 1,093,530 | 753,980 | 3,313,336 | 2,638,547 |
Income from operations | 342,115 | 288,727 | 1,669,634 | 1,234,318 |
Other income (loss) | 0 | (57,000) | 10,611 | (57,000) |
Interest income | 26,511 | 11,584 | 82,897 | 71,635 |
Income before taxes | 368,626 | 243,311 | 1,763,142 | 1,248,953 |
Income tax expense | 78,500 | 56,500 | 453,500 | 292,500 |
Net income | $ 290,126 | $ 186,811 | $ 1,309,642 | $ 956,453 |
Net income per share - basic (in dollars per share) | $ 0.06 | $ 0.04 | $ 0.29 | $ 0.21 |
Net income per share - diluted (in dollars per share) | $ 0.06 | $ 0.04 | $ 0.29 | $ 0.21 |
Weighted-average shares outstanding - basic (in shares) | 4,521,988 | 4,511,988 | 4,521,988 | 4,508,258 |
Weighted-average shares outstanding - diluted (in shares) | 4,566,679 | 4,526,115 | 4,560,604 | 4,522,694 |
Condensed Statements of Stockho
Condensed Statements of Stockholders' Equity (Unaudited) - USD ($) | Common Stock Outstanding [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Total |
BALANCE (in shares) at Dec. 31, 2020 | 4,506,788 | ||||
BALANCE at Dec. 31, 2020 | $ 4,507 | $ 1,876,970 | $ 3,057,647 | $ (245,631) | $ 4,693,493 |
Stock compensation expense | $ 0 | 13,006 | 0 | 0 | 13,006 |
Common stock issued to non-employee, employees and board member from treasury (in shares) | 15,200 | ||||
Common stock issued to non-employee, employees and board member from treasury | $ 15 | (12,047) | 0 | 12,032 | 0 |
Net income (loss) | $ 0 | 0 | 616,007 | 0 | 616,007 |
BALANCE (in shares) at Mar. 31, 2021 | 4,521,988 | ||||
BALANCE at Mar. 31, 2021 | $ 4,522 | 1,877,929 | 3,673,654 | (233,599) | 5,322,506 |
BALANCE (in shares) at Dec. 31, 2020 | 4,506,788 | ||||
BALANCE at Dec. 31, 2020 | $ 4,507 | 1,876,970 | 3,057,647 | (245,631) | 4,693,493 |
Net income (loss) | 956,453 | ||||
BALANCE (in shares) at Sep. 30, 2021 | 4,521,988 | ||||
BALANCE at Sep. 30, 2021 | $ 4,522 | 1,944,167 | 4,014,100 | (233,599) | 5,729,190 |
BALANCE (in shares) at Mar. 31, 2021 | 4,521,988 | ||||
BALANCE at Mar. 31, 2021 | $ 4,522 | 1,877,929 | 3,673,654 | (233,599) | 5,322,506 |
Stock compensation expense | 0 | 45,187 | 0 | 0 | 45,187 |
Net income (loss) | $ 0 | 0 | 153,635 | 0 | 153,635 |
BALANCE (in shares) at Jun. 30, 2021 | 4,521,988 | ||||
BALANCE at Jun. 30, 2021 | $ 4,522 | 1,923,116 | 3,827,289 | (233,599) | 5,521,328 |
Stock compensation expense | 0 | 21,051 | 0 | 0 | 21,051 |
Net income (loss) | $ 0 | 0 | 186,811 | 0 | 186,811 |
BALANCE (in shares) at Sep. 30, 2021 | 4,521,988 | ||||
BALANCE at Sep. 30, 2021 | $ 4,522 | 1,944,167 | 4,014,100 | (233,599) | 5,729,190 |
BALANCE (in shares) at Dec. 31, 2021 | 4,521,988 | ||||
BALANCE at Dec. 31, 2021 | $ 4,522 | 1,988,137 | 4,768,298 | (233,599) | 6,527,358 |
Stock compensation expense | 100 | 13,607 | 0 | 0 | 13,707 |
Net income (loss) | $ 0 | 0 | 1,261,840 | 0 | 1,261,840 |
Stock compensation expense (in shares) | 100,000 | ||||
BALANCE (in shares) at Mar. 31, 2022 | 4,621,988 | ||||
BALANCE at Mar. 31, 2022 | $ 4,622 | 2,001,744 | 6,030,138 | (233,599) | 7,802,905 |
BALANCE (in shares) at Dec. 31, 2021 | 4,521,988 | ||||
BALANCE at Dec. 31, 2021 | $ 4,522 | 1,988,137 | 4,768,298 | (233,599) | 6,527,358 |
Net income (loss) | 1,309,642 | ||||
BALANCE (in shares) at Sep. 30, 2022 | 4,621,988 | ||||
BALANCE at Sep. 30, 2022 | $ 4,622 | 2,064,060 | 6,077,940 | (233,599) | 7,913,023 |
BALANCE (in shares) at Mar. 31, 2022 | 4,621,988 | ||||
BALANCE at Mar. 31, 2022 | $ 4,622 | 2,001,744 | 6,030,138 | (233,599) | 7,802,905 |
Stock compensation expense | 0 | 31,158 | 0 | 0 | 31,158 |
Net income (loss) | $ 0 | 0 | (242,324) | 0 | (242,324) |
BALANCE (in shares) at Jun. 30, 2022 | 4,621,988 | ||||
BALANCE at Jun. 30, 2022 | $ 4,622 | 2,032,902 | 5,787,814 | (233,599) | 7,591,739 |
Stock compensation expense | 0 | 31,158 | 0 | 0 | 31,158 |
Net income (loss) | $ 0 | 0 | 290,126 | 0 | 290,126 |
BALANCE (in shares) at Sep. 30, 2022 | 4,621,988 | ||||
BALANCE at Sep. 30, 2022 | $ 4,622 | $ 2,064,060 | $ 6,077,940 | $ (233,599) | $ 7,913,023 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
OPERATING ACTIVITIES | ||
Net income | $ 1,309,642 | $ 956,453 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation | 7,879 | 20,012 |
Deferred income taxes | 200,000 | (222,000) |
Stock compensation expense | 76,023 | 79,244 |
Loss on Investment | 0 | 57,000 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (1,362,805) | (277,353) |
Inventory | (198,213) | 141,317 |
Prepaid expenses | 388,665 | 123,465 |
Net investment in sales type leases | 29,304 | (189,314) |
Accounts payable, accrued expenses and other | 109,223 | 184,829 |
Payroll liabilities | (1,902) | 2,379 |
Customer deposits | (309,122) | 844,141 |
Income tax receivable (accrued income taxes) | (520,649) | 491,795 |
Net cash provided by (used in) operating activities | (271,955) | 2,211,968 |
INVESTING ACTIVITIES | ||
Purchase of investment | 0 | (57,000) |
Net cash used in investing activities | 0 | (57,000) |
FINANCING ACTIVITIES | ||
Proceeds from Paycheck Protection Program loan | 0 | 473,400 |
Net cash provided by financing activities | 0 | 473,400 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (271,955) | 2,628,368 |
CASH AND CASH EQUIVALENTS | ||
Beginning of period | 4,945,913 | 1,731,869 |
End of period | 4,673,958 | 4,360,237 |
Non-cash investing and financing activities: | ||
Treasury stock cost related to compensation | 0 | 12,047 |
Supplemental cash flow information: | ||
Operating cash outflow for operating leases | $ 48,237 | $ 44,437 |
Note 1 - Nature of Business and
Note 1 - Nature of Business and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2022 | |
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. September 30, 2022 three nine September 30, 2022 2021 nine September 30, 2022 2021 The accompanying financial statements should be read in conjunction with the financial statements and notes included in the Table Trac, Inc. Annual Report on Form 10 December 31, 2021 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 configurations, 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, the nature and timing of satisfaction of performance obligations, and determining the standalone selling price (“SSP”) of performance obligations, determining collectability, and other obligations, realizability of accounts receivable, the valuation of investments, the valuation of deferred tax assets and liabilities, and inventory valuation. Actual results could differ from those estimates, and the difference could be significant. For further information about our critical accounting estimates, see the discussion in Item 7, 10 December 31, 2021. There were no nine September 30, 2022 The Company’s significant accounting policies are described in Note 1 10 December 31, 2021 Concentrations of Risk The Company maintains its cash balances at two $250,000. three Stock-Based Compensation The Company's stock-based compensation consists of stock options and restricted stock issued to certain company employees. The Company measures and recognizes compensation expense for all stock-based payment awards made to employees, directors and non-employees. 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 restricted stock awards on the date of grant using the closing traded price on that date. The Company’s restricted stock awards are subject to vesting requirements and the corresponding compensation is recorded ratably over the service period. For stock options, the Company recognizes compensation expense based on an estimated grant date fair value using the Black-Scholes option-pricing model. The Company has elected to account for forfeitures as they occur and to use the simplified method to determine the expected life of stock options. Revenue The Company derives revenues from the sale or leasing of systems, license and maintenance fees, services, and rental agreements. System Sales Revenue is recognized upon transfer of control of promised products and 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. Management’s assessment of collectability at both contract inception and on an ongoing basis resulted in the determination that some of our contracts did not not 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. Lease Revenue The Company derives a portion of its revenue from a sales type leasing arrangement in accordance with ASC 842. Service Revenue and Other Revenue Service revenue is recognized upon completion of the services and is billed in arrears. The SSP for service revenue is established based upon actual selling prices for the services or prior similar arrangements. Other revenue includes DataTrac, kiosks and related promotional programs and miscellaneous sales of equipment. Revenue is recognized upon completion of services or delivery of equipment and is billed in arrears. 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 following table summarizes disaggregated revenues by major product line for the three September 30, 2022 2021 Three Months Ended September 30, 2022 2021 2022 2021 (percent of revenues) System revenue $ 1,120,994 $ 491,696 48.7 % 33.9 % Maintenance revenue 882,861 779,364 38.4 % 53.8 % Lease revenue 0 0 0.0 % 0.0 % Service and other revenue 297,474 178,821 12.9 % 12.3 % Total revenues $ 2,301,329 $ 1,449,881 100.0 % 100.0 % The following table summarizes disaggregated revenues by major product line for the nine September 30, 2022 2021 Nine Months Ended September 30, 2022 2021 2022 2021 (percent of revenues) System revenue $ 4,781,261 $ 2,047,097 58.9 % 40.3 % Maintenance revenue 2,518,034 2,420,870 31.1 % 47.7 % Lease revenue 0 212,658 0.0 % 4.2 % Service and other revenue 812,872 393,275 10.0 % 7.8 % Total revenues $ 8,112,167 $ 5,073,900 100.0 % 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, including lease and non-lease components. We use a single amount to estimate SSP when we sell a product or service separately. In instances where SSP is not not may one We recognize a contract asset when our performance under a contract precedes our receipt of consideration from a customer, or before payment is due, and our receipt of consideration is conditional upon factors other than the passage of time. A contract asset is recognized when we have an unconditional right to payment for our performance. Our contract asset consists of our in-process installations, for which we have an enforceable right to collect consideration (including a reasonable profit) in the event the services are cancelled by customers. As of September 30, 2022, The collectability assessment requires the company to use judgement and consider all relevant facts and circumstances. Management exercises judgment in its assessment of collectability of customer funds by considering payment history, current credit status, and available information about the financial condition of the customer, among other factors. As of September 30, 2022 December 31, 2021, not may During the nine September 30, 2022 , one 2020, not two not The collectability assessment requires the company to use judgement and consider all relevant facts and circumstances. We evaluate the interest rates in customer contracts with extended payment terms, representing a significant financing component. These rates range from approximately 1% to 6% and we believe those to be appropriate market interest rates for the financing component. Fair Value of Financial Instruments The Company’s financial instruments consist of cash and cash equivalents, 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 The Company considers all highly liquid investments purchased with an original maturity of three 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 as of each balance sheet date. For receivables related to contracts that contain an interest rate, interest income is recorded upon receipt on the statements of operations. An allowance for doubtful accounts is recorded when the Company believes the amounts may not no may not not In March 2021, 2021 20, PPP) loan from qualifying for the Employee Retention Credit (“ERC”), which is a refundable tax credit against certain employment taxes. The Company determined that we have complied with all of the conditions required to receive the credit. Approximately $122,000 had been included in accounts receivable at December 31, 2021. three March 31, 2022. Major Customers The following table summarizes the Company's major customers' information for the nine September 30, 2022 2021 For the Nine Months ended September 30 2022 2021 % Revenues % AR % Revenues % AR Major 40.4 % 40.1 % 33.3 % 55.3 % All Others 59.6 % 59.9 % 66.7 % 44.7 % Total 100.0 % 100.0 % 100.0 % 100.0 % For the nine September 30, 2022 2021 esent 95.0% and 88.1%, of to The following table summarizes the Company's major customers' information for the three September 30, 2022 2021 For the Three Months ended September 30 2022 2021 % Revenues % Revenues Major 41.7 % 20.6 % All Others 58.3 % 79.4 % Total 100.0 % 100.0 % For the three September 30, 2022 2021 esent 93.1% and 89.3%, of to A major customer is defined as any customer that represents at least 10% 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 September 30, 2022 December 31, 2021 s $1,780,571 and September 30, 2022 December 31, 2021 September 30, 2022 December 31, 2021 September 30, 2022 December 31, 2021 Net Investment in Sales Type Lease Net investment in leases are recognized when the Company's leases qualify as sales-type leases. The net investment in leases is initially measured at the present value of the fixed lease payments, discounted at the rate implicit in the lease. 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 five 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 Research and Development The Company expenses all costs related to research and development as incurred. Research and development expense were $190,713 and $8,839 for the nine months ended September 30, 2022 and 2021 , respectively. Research and development expenses are included in selling, general and administrative expenses on the condensed statements of operations. |
Note 2 - Accounts Receivable
Note 2 - Accounts Receivable | 9 Months Ended |
Sep. 30, 2022 | |
Notes to Financial Statements | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 2. Accounts Receivable – Accounts receivable consisted of the following at: (Unaudited) September 30, December 31, 2022 2021 Accounts receivable - Current $ 1,734,789 $ 1,078,909 Contract asset 121,181 0 Less allowance for doubtful accounts (56,786 ) (61,376 ) Accounts receivable current - net $ 1,799,184 $ 1,017,533 Accounts receivable - Long-term $ 869,819 $ 288,665 The allowance for accounts receivable represents management’s best estimate of probable losses in our 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 receivables, but that have not A roll-forward of the Company’s allowance for doubtful accounts for the periods presented is as follows: (Unaudited) September 30, December 31, 2022 2021 Accounts receivable allowance, beginning of the period $ 61,376 $ 77,623 Provision adjustment 0 0 Write-off (4,590 ) (16,247 ) Accounts receivable allowance, end of the period $ 56,786 $ 61,376 |
Note 3 - Net Investment in Sale
Note 3 - Net Investment in Sales Type Lease | 9 Months Ended |
Sep. 30, 2022 | |
Notes to Financial Statements | |
Lessor, Sales-type Leases [Text Block] | 3. Net Investment in Sales Type Lease – In January 2021, five At inception, the Company recorded $210,782 in "Net investment in sales type leases" and derecognized $139,521 from “Inventory" on its condensed balance sheet. The Company recogni zed 29,304 a nine September 30, 2022 2021, nine September 30, 2022 2021 ed $7,370 an The future minimum lease payments receivable for sales type leases are as follows: Amount 2022 (remainder) $ 12,225 2023 48,900 2024 48,900 2025 48,900 2026 4,075 Total undiscounted cash flows 163,000 Present value discount 15,598 Net investment in a sales type lease as of September 30, 2022 $ 147,402 The total net investments in a sales type lease, as of September 30, 2022 and December 31, 2021 and $ is included in Current Assets on the condensed balance sheet as of September 30, 2022 and December 31, 2021, and $ is included in Long-Term Assets on the condensed balance sheet as of September 30, 2022 and December 31, 2021, not not |
Note 4 - Operating Leases
Note 4 - Operating Leases | 9 Months Ended |
Sep. 30, 2022 | |
Notes to Financial Statements | |
Lessee, Operating Leases [Text Block] | 4. Operating Leases – We lease space under non-cancelable operating leases for our two not not Our leases include one On May 18, 2021, July 31, 2025. September 20, 2022, August 31, 2025. Our leases do not For the three nine months ended September 30, 2022 and 2021, $15,662 and $48,237 and $14,504 and $43,512, respectively Maturities of our lease liabilities for all operating leases are as follows as of September 30, 2022 Leased Facilities 2022 (remainder) $ 16,039 2023 64,666 2024 65,682 2025 36,620 Total Lease Payments 183,008 Less: Interest 10,807 Present value of lease liabilities $ 172,201 The weighted average remaining lease term eq uals 2.87 y September 30, 2022 |
Note 5 - Bank Financing
Note 5 - Bank Financing | 9 Months Ended |
Sep. 30, 2022 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 5. Bank Financing – Revolving Credit Line The Company has a revolving credit line of up to $500,000 that expires on February 1, 2023. no three nine September 30, 2022 three September 30, 2022 Payroll Protection Program Loan On February 2, 2021, October 22, 2021. |
Note 6 - Stockholders' Equity
Note 6 - Stockholders' Equity | 9 Months Ended |
Sep. 30, 2022 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 6. Stockholders’ Equity – Stock Compensation On March 8, 2021, two On March 25, 2022, five March 25, 2023. The unvested stock compensation expense is expected to be recognized over a weighted average period of approximately four September 30, 2022 mate $320,000. For the three nine months ended September 30, 2022 and 2021, The Company had 115,200 and 25,200 unvested restricted shar September 30, 2022 December 31, 2021 On May 14, 2021, 2021 not ten On May 14, 2021, On December 17, 2021, 2021 The fair value of the Company’s stock options issued was estimated using a Black-Scholes option pricing model with the following weighted-average assumptions: Expected volatility 80.0% - 90% Expected life (years) 2.5 to 6.6 Risk-free interest rate 0.82% - 1.47% Expected dividend yield 0 % For the three nine months ended September 30, 2022 and 2021, No options were exercised during the period. The following table summarizes additional information about stock options outstanding and exercisable at September 30, 2022 : Options Outstanding Options Exercisable Options Outstanding Weighted Average Remaining Contractual Life Weighted Average Exercise Price Aggregate Intrinsic Value Options Exercisable Weighted Average Exercise Price Aggregate Intrinsic Value 85,000 7.39 $ 2.52 $ 122,050 50,000 $ 2.60 $ 68,150 As of September 30, 2022 , the Company had $56,318 in unrecognized compensation cost related to non‑vested stock options, which is expected to be recognized over a weighted‑average period of approximately three The Company has 85,000 and 70,000 stock options outstanding as of September 30, 2022 and 2021 , respectively. |
Note 7 - Income Tax
Note 7 - Income Tax | 9 Months Ended |
Sep. 30, 2022 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 7. 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 significant unrecognized tax positions. The Company’s evaluation was performed for the tax years ended December 31, 2017 2020, September 30, 2022 not twelve The Company may |
Note 8 - Earnings Per Share
Note 8 - Earnings Per Share | 9 Months Ended |
Sep. 30, 2022 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 8. 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 nine September 30, 2022 2021 For the Three Months Ended September 30, 2022 2021 Basic and diluted earnings per share calculation: Net income to common stockholders $ 290,126 $ 186,811 Weighted average number of common shares outstanding - basic 4,521,988 4,511,988 Basic net income per share $ 0.06 $ 0.04 Weighted average number of common shares outstanding - diluted 4,566,679 4,526,115 Diluted net income per share $ 0.06 $ 0.04 For the Nine Months Ended September 30, 2022 2021 Basic and diluted earnings per share calculation: Net income to common stockholders $ 1,309,642 $ 956,453 Weighted average number of common shares outstanding - basic 4,521,988 4,508,258 Basic net income per share $ 0.29 $ 0.21 Weighted average number of common shares outstanding - diluted 4,560,604 4,522,694 Diluted net income per share $ 0.29 $ 0.21 For the three nine September 30, 2022 had a dilutive effect of approximately 44,700 and 38,600 shares, respectively. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
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. September 30, 2022 three nine September 30, 2022 2021 nine September 30, 2022 2021 The accompanying financial statements should be read in conjunction with the financial statements and notes included in the Table Trac, Inc. Annual Report on Form 10 December 31, 2021 |
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 configurations, 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, the nature and timing of satisfaction of performance obligations, and determining the standalone selling price (“SSP”) of performance obligations, determining collectability, and other obligations, realizability of accounts receivable, the valuation of investments, the valuation of deferred tax assets and liabilities, and inventory valuation. Actual results could differ from those estimates, and the difference could be significant. For further information about our critical accounting estimates, see the discussion in Item 7, 10 December 31, 2021. There were no nine September 30, 2022 The Company’s significant accounting policies are described in Note 1 10 December 31, 2021 |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentrations of Risk The Company maintains its cash balances at two $250,000. three |
Share-Based Payment Arrangement [Policy Text Block] | Stock-Based Compensation The Company's stock-based compensation consists of stock options and restricted stock issued to certain company employees. The Company measures and recognizes compensation expense for all stock-based payment awards made to employees, directors and non-employees. 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 restricted stock awards on the date of grant using the closing traded price on that date. The Company’s restricted stock awards are subject to vesting requirements and the corresponding compensation is recorded ratably over the service period. For stock options, the Company recognizes compensation expense based on an estimated grant date fair value using the Black-Scholes option-pricing model. The Company has elected to account for forfeitures as they occur and to use the simplified method to determine the expected life of stock options. |
Revenue [Policy Text Block] | Revenue The Company derives revenues from the sale or leasing of systems, license and maintenance fees, services, and rental agreements. System Sales Revenue is recognized upon transfer of control of promised products and 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. Management’s assessment of collectability at both contract inception and on an ongoing basis resulted in the determination that some of our contracts did not not 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. Lease Revenue The Company derives a portion of its revenue from a sales type leasing arrangement in accordance with ASC 842. Service Revenue and Other Revenue Service revenue is recognized upon completion of the services and is billed in arrears. The SSP for service revenue is established based upon actual selling prices for the services or prior similar arrangements. Other revenue includes DataTrac, kiosks and related promotional programs and miscellaneous sales of equipment. Revenue is recognized upon completion of services or delivery of equipment and is billed in arrears. 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 following table summarizes disaggregated revenues by major product line for the three September 30, 2022 2021 Three Months Ended September 30, 2022 2021 2022 2021 (percent of revenues) System revenue $ 1,120,994 $ 491,696 48.7 % 33.9 % Maintenance revenue 882,861 779,364 38.4 % 53.8 % Lease revenue 0 0 0.0 % 0.0 % Service and other revenue 297,474 178,821 12.9 % 12.3 % Total revenues $ 2,301,329 $ 1,449,881 100.0 % 100.0 % The following table summarizes disaggregated revenues by major product line for the nine September 30, 2022 2021 Nine Months Ended September 30, 2022 2021 2022 2021 (percent of revenues) System revenue $ 4,781,261 $ 2,047,097 58.9 % 40.3 % Maintenance revenue 2,518,034 2,420,870 31.1 % 47.7 % Lease revenue 0 212,658 0.0 % 4.2 % Service and other revenue 812,872 393,275 10.0 % 7.8 % Total revenues $ 8,112,167 $ 5,073,900 100.0 % 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, including lease and non-lease components. We use a single amount to estimate SSP when we sell a product or service separately. In instances where SSP is not not may one We recognize a contract asset when our performance under a contract precedes our receipt of consideration from a customer, or before payment is due, and our receipt of consideration is conditional upon factors other than the passage of time. A contract asset is recognized when we have an unconditional right to payment for our performance. Our contract asset consists of our in-process installations, for which we have an enforceable right to collect consideration (including a reasonable profit) in the event the services are cancelled by customers. As of September 30, 2022, The collectability assessment requires the company to use judgement and consider all relevant facts and circumstances. Management exercises judgment in its assessment of collectability of customer funds by considering payment history, current credit status, and available information about the financial condition of the customer, among other factors. As of September 30, 2022 December 31, 2021, not may During the nine September 30, 2022 , one 2020, not two not The collectability assessment requires the company to use judgement and consider all relevant facts and circumstances. We evaluate the interest rates in customer contracts with extended payment terms, representing a significant financing component. These rates range from approximately 1% to 6% and we believe those to be appropriate market interest rates for the financing component. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value of Financial Instruments The Company’s financial instruments consist of cash and cash equivalents, 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 The Company considers all highly liquid investments purchased with an original maturity of three |
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 as of each balance sheet date. For receivables related to contracts that contain an interest rate, interest income is recorded upon receipt on the statements of operations. An allowance for doubtful accounts is recorded when the Company believes the amounts may not no may not not In March 2021, 2021 20, PPP) loan from qualifying for the Employee Retention Credit (“ERC”), which is a refundable tax credit against certain employment taxes. The Company determined that we have complied with all of the conditions required to receive the credit. Approximately $122,000 had been included in accounts receivable at December 31, 2021. three March 31, 2022. |
Major Customers [Policy Text Block] | Major Customers The following table summarizes the Company's major customers' information for the nine September 30, 2022 2021 For the Nine Months ended September 30 2022 2021 % Revenues % AR % Revenues % AR Major 40.4 % 40.1 % 33.3 % 55.3 % All Others 59.6 % 59.9 % 66.7 % 44.7 % Total 100.0 % 100.0 % 100.0 % 100.0 % For the nine September 30, 2022 2021 esent 95.0% and 88.1%, of to The following table summarizes the Company's major customers' information for the three September 30, 2022 2021 For the Three Months ended September 30 2022 2021 % Revenues % Revenues Major 41.7 % 20.6 % All Others 58.3 % 79.4 % Total 100.0 % 100.0 % For the three September 30, 2022 2021 esent 93.1% and 89.3%, of to A major customer is defined as any customer that represents at least 10% 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 September 30, 2022 December 31, 2021 s $1,780,571 and September 30, 2022 December 31, 2021 September 30, 2022 December 31, 2021 September 30, 2022 December 31, 2021 |
Lessor, Leases [Policy Text Block] | Net Investment in Sales Type Lease Net investment in leases are recognized when the Company's leases qualify as sales-type leases. The net investment in leases is initially measured at the present value of the fixed lease payments, discounted at the rate implicit in the lease. |
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 five |
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 |
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 $190,713 and $8,839 for the nine months ended September 30, 2022 and 2021 , respectively. Research and development expenses are included in selling, general and administrative expenses on the condensed statements of operations. |
Note 1 - Nature of Business a_2
Note 1 - Nature of Business and Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Three Months Ended September 30, 2022 2021 2022 2021 (percent of revenues) System revenue $ 1,120,994 $ 491,696 48.7 % 33.9 % Maintenance revenue 882,861 779,364 38.4 % 53.8 % Lease revenue 0 0 0.0 % 0.0 % Service and other revenue 297,474 178,821 12.9 % 12.3 % Total revenues $ 2,301,329 $ 1,449,881 100.0 % 100.0 % Nine Months Ended September 30, 2022 2021 2022 2021 (percent of revenues) System revenue $ 4,781,261 $ 2,047,097 58.9 % 40.3 % Maintenance revenue 2,518,034 2,420,870 31.1 % 47.7 % Lease revenue 0 212,658 0.0 % 4.2 % Service and other revenue 812,872 393,275 10.0 % 7.8 % Total revenues $ 8,112,167 $ 5,073,900 100.0 % 100.0 % |
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block] | For the Nine Months ended September 30 2022 2021 % Revenues % AR % Revenues % AR Major 40.4 % 40.1 % 33.3 % 55.3 % All Others 59.6 % 59.9 % 66.7 % 44.7 % Total 100.0 % 100.0 % 100.0 % 100.0 % For the Three Months ended September 30 2022 2021 % Revenues % Revenues Major 41.7 % 20.6 % All Others 58.3 % 79.4 % Total 100.0 % 100.0 % |
Note 2 - Accounts Receivable (T
Note 2 - Accounts Receivable (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Notes Tables | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | (Unaudited) September 30, December 31, 2022 2021 Accounts receivable - Current $ 1,734,789 $ 1,078,909 Contract asset 121,181 0 Less allowance for doubtful accounts (56,786 ) (61,376 ) Accounts receivable current - net $ 1,799,184 $ 1,017,533 Accounts receivable - Long-term $ 869,819 $ 288,665 |
Accounts Receivable, Allowance for Credit Loss [Table Text Block] | (Unaudited) September 30, December 31, 2022 2021 Accounts receivable allowance, beginning of the period $ 61,376 $ 77,623 Provision adjustment 0 0 Write-off (4,590 ) (16,247 ) Accounts receivable allowance, end of the period $ 56,786 $ 61,376 |
Note 3 - Net Investment in Sa_2
Note 3 - Net Investment in Sales Type Lease (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Notes Tables | |
Sales-type and Direct Financing Leases, Lease Receivable, Maturity [Table Text Block] | Amount 2022 (remainder) $ 12,225 2023 48,900 2024 48,900 2025 48,900 2026 4,075 Total undiscounted cash flows 163,000 Present value discount 15,598 Net investment in a sales type lease as of September 30, 2022 $ 147,402 |
Note 4 - Operating Leases (Tabl
Note 4 - Operating Leases (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Notes Tables | |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Leased Facilities 2022 (remainder) $ 16,039 2023 64,666 2024 65,682 2025 36,620 Total Lease Payments 183,008 Less: Interest 10,807 Present value of lease liabilities $ 172,201 |
Note 6 - Stockholders' Equity (
Note 6 - Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Notes Tables | |
Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Expected volatility 80.0% - 90% Expected life (years) 2.5 to 6.6 Risk-free interest rate 0.82% - 1.47% Expected dividend yield 0 % |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable [Table Text Block] | Options Outstanding Options Exercisable Options Outstanding Weighted Average Remaining Contractual Life Weighted Average Exercise Price Aggregate Intrinsic Value Options Exercisable Weighted Average Exercise Price Aggregate Intrinsic Value 85,000 7.39 $ 2.52 $ 122,050 50,000 $ 2.60 $ 68,150 |
Note 8 - Earnings Per Share (Ta
Note 8 - Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | For the Three Months Ended September 30, 2022 2021 Basic and diluted earnings per share calculation: Net income to common stockholders $ 290,126 $ 186,811 Weighted average number of common shares outstanding - basic 4,521,988 4,511,988 Basic net income per share $ 0.06 $ 0.04 Weighted average number of common shares outstanding - diluted 4,566,679 4,526,115 Diluted net income per share $ 0.06 $ 0.04 For the Nine Months Ended September 30, 2022 2021 Basic and diluted earnings per share calculation: Net income to common stockholders $ 1,309,642 $ 956,453 Weighted average number of common shares outstanding - basic 4,521,988 4,508,258 Basic net income per share $ 0.29 $ 0.21 Weighted average number of common shares outstanding - diluted 4,560,604 4,522,694 Diluted net income per share $ 0.29 $ 0.21 |
Note 1 - Nature of Business a_3
Note 1 - Nature of Business and Summary of Significant Accounting Policies (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Contract with Customer, Asset, after Allowance for Credit Loss, Current, Total | $ 121,181 | $ 121,181 | $ 0 | ||
Contract with Customer, Asset, Allowance for Credit Loss, Ending Balance | 2,926,000 | 2,926,000 | 1,438,000 | ||
Number of Contracts of Collectable Revenue | 1 | 1 | |||
Revenue Recognized on Contract with Customer | 1,079,000 | 1,079,000 | |||
Receivable Employee Retention Credit | 122,000 | ||||
Inventory Valuation Reserves | 999 | 999 | 36,353 | ||
Inventory, Net, Total | 1,780,571 | 1,780,571 | 1,582,358 | ||
Inventory, Work in Process, Gross | 440,856 | 440,856 | 699,024 | ||
Research and Development Expense, Total | 190,713 | $ 8,839 | |||
Prepaid Expenses and Other Current Assets [Member] | |||||
Prepaid Supplies | $ 82,508 | $ 82,508 | $ 511,500 | ||
Revenue Benchmark [Member] | Geographic Concentration Risk [Member] | UNITED STATES | |||||
Concentration Risk, Percentage | 93.10% | 89.30% | 95% | 88.10% | |
Minimum [Member] | |||||
Contract with Customer, Liability, Interest Rate | 1% | 1% | |||
Property, Plant and Equipment, Useful Life (Year) | 2 years | ||||
Maximum [Member] | |||||
Contract with Customer, Liability, Interest Rate | 6% | 6% | |||
Property, Plant and Equipment, Useful Life (Year) | 5 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 | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Total revenues | $ 2,301,329 | $ 1,449,881 | $ 8,112,167 | $ 5,073,900 |
Percent of revenues | 100% | 100% | 100% | 100% |
System [Member] | ||||
Total revenues | $ 1,120,994 | $ 491,696 | $ 4,781,261 | $ 2,047,097 |
Percent of revenues | 48.70% | 33.90% | 58.90% | 40.30% |
Maintenance [Member] | ||||
Total revenues | $ 882,861 | $ 779,364 | $ 2,518,034 | $ 2,420,870 |
Percent of revenues | 38.40% | 53.80% | 31.10% | 47.70% |
Lease [Member] | ||||
Total revenues | $ 0 | $ 0 | $ 0 | $ 212,658 |
Percent of revenues | 0% | 0% | 0% | 4.20% |
Service and Other [Member] | ||||
Total revenues | $ 297,474 | $ 178,821 | $ 812,872 | $ 393,275 |
Percent of revenues | 12.90% | 12.30% | 10% | 7.80% |
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 | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenue Benchmark [Member] | ||||
Concentration percent | 100% | 100% | 100% | |
Revenue Benchmark [Member] | Major Customers [Member] | ||||
Concentration percent | 41.70% | 40.40% | 33.30% | |
Revenue Benchmark [Member] | Other Customer [Member] | ||||
Concentration percent | 58.30% | 59.60% | 66.70% | |
Accounts Receivable [Member] | ||||
Concentration percent | 100% | 100% | 100% | |
Accounts Receivable [Member] | Major Customers [Member] | ||||
Concentration percent | 20.60% | 40.10% | 55.30% | |
Accounts Receivable [Member] | Other Customer [Member] | ||||
Concentration percent | 79.40% | 59.90% | 44.70% |
Note 2 - Accounts Receivable -
Note 2 - Accounts Receivable - Accounts Receivable (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Accounts receivable - Current | $ 1,734,789 | $ 1,078,909 | |
Contract asset | 121,181 | 0 | |
Less allowance for doubtful accounts | (56,786) | (61,376) | $ (77,623) |
Accounts receivable current - net | 1,799,184 | 1,017,533 | |
Accounts receivable - Long-term | $ 869,819 | $ 288,665 |
Note 2 - Accounts Receivable _2
Note 2 - Accounts Receivable - Allowance for Doubtful Accounts (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Accounts receivable allowance, beginning of the period | $ 61,376 | $ 77,623 |
Provision adjustment | 0 | 0 |
Write-off | (4,590) | (16,247) |
Accounts receivable allowance, end of the period | $ 56,786 | $ 61,376 |
Note 3 - Net Investment in Sa_3
Note 3 - Net Investment in Sales Type Lease (Details Textual) - USD ($) | 1 Months Ended | 9 Months Ended | ||
Jan. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Lessor, Sales-type Lease, Term of Contract (Year) | 5 years | |||
Lessor, Sales-type Lease, Implied Interest Rate | 6% | |||
Sales-Type Lease, Net Investment in Lease, after Allowance for Credit Loss | $ 210,782 | $ 147,402 | $ 176,706 | |
Inventory Derecognized for Sales-type Leases | $ 139,521 | |||
Sales-type Lease, Lease Income, Total | 29,304 | $ 71,261 | ||
Sales-type Lease, Interest Income | 7,370 | $ 15,232 | ||
Sales-Type Lease, Net Investment in Lease, after Allowance for Credit Loss, Current | 41,176 | 39,369 | ||
Sales-Type Lease, Net Investment in Lease, after Allowance for Credit Loss, Noncurrent | $ 106,226 | $ 137,337 |
Note 3 - Net Investment in Sa_4
Note 3 - Net Investment in Sales Type Lease - Future Minimum Lease Payments Receivable (Details) | Sep. 30, 2022 USD ($) |
2022 (remainder) | $ 12,225 |
2023 | 48,900 |
2024 | 48,900 |
2025 | 48,900 |
2026 | 4,075 |
Total undiscounted cash flows | 163,000 |
Present value discount | 15,598 |
Net investment in a sales type lease as of September 30, 2022 | $ 147,402 |
Note 4 - Operating Leases (Deta
Note 4 - Operating Leases (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 20, 2022 | May 18, 2021 | |
Operating Lease, Weighted Average Discount Rate, Percent | 5% | 5% | ||||
Operating Lease, Cost | $ 15,662 | $ 14,504 | $ 48,237 | $ 43,512 | ||
Operating Lease, Weighted Average Remaining Lease Term (Year) | 2 years 10 months 13 days | 2 years 10 months 13 days | ||||
MINNESOTA | ||||||
Lessee, Operating Lease, Term of Contract (Month) | 48 months | |||||
OKLAHOMA | ||||||
Lessee, Operating Lease, Term of Contract (Month) | 36 months |
Note 4 - Operating Leases - Mat
Note 4 - Operating Leases - Maturities of Lease (Details) | Sep. 30, 2022 USD ($) |
2022 (remainder) | $ 16,039 |
2023 | 64,666 |
2024 | 65,682 |
2025 | 36,620 |
Total Lease Payments | 183,008 |
Less: Interest | 10,807 |
Present value of lease liabilities | $ 172,201 |
Note 5 - Bank Financing (Detail
Note 5 - Bank Financing (Details Textual) - USD ($) | 3 Months Ended | |
Sep. 30, 2022 | Feb. 02, 2021 | |
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 | |
Debt Instrument, Prime Rate Floor | 3.75% | |
Revolving Credit Facility [Member] | General Credit Agreement [Member] | Prime Rate [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 6.25% |
Note 6 - Stockholders' Equity_2
Note 6 - Stockholders' Equity (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | |||||||
Mar. 25, 2022 | Dec. 31, 2021 | Dec. 17, 2021 | May 14, 2021 | Mar. 08, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 320,000 | $ 320,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares) | 15,000 | 70,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Grant Date Fair Value | $ 128,726 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | $ 22,919 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period (in shares) | 0 | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number, Ending Balance (in shares) | 85,000 | 70,000 | 85,000 | 70,000 | |||||
Chief Executive Officer [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares) | 20,000 | ||||||||
Robert Siqveland [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares) | 20,000 | ||||||||
Chief Financial Officer [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares) | 30,000 | ||||||||
Restricted Stock [Member] | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 15,200 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 2 years | ||||||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 45,300 | ||||||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 4 years | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance (in shares) | 25,200 | 115,200 | 115,200 | ||||||
Restricted Stock [Member] | Chief Financial Officer and Corporate Secretary [Member] | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 100,000 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 5 years | ||||||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 349,000 | ||||||||
Restricted Stock [Member] | Chief Financial Officer and Corporate Secretary [Member] | Share-Based Payment Arrangement, Tranche One [Member] | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 20,000 | ||||||||
Share-Based Payment Arrangement, Option [Member] | |||||||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 3 years | ||||||||
Share-Based Payment Arrangement, Expense | $ 23,113 | $ 13,006 | $ 51,886 | $ 52,024 | |||||
Share-Based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount | 56,318 | 56,318 | |||||||
Share-Based Payment Arrangement, Option [Member] | Selling, General and Administrative Expenses [Member] | |||||||||
Share-Based Payment Arrangement, Expense | $ 8,045 | $ 8,045 | $ 24,136 | $ 40,227 | |||||
Share-Based Payment Arrangement, Option [Member] | The 2021 Stock Incentive Plan [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period (Year) | 10 years | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares) | 500,000 | ||||||||
Share-Based Payment Arrangement, Option [Member] | Vesting Immediately [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25% | ||||||||
Share-Based Payment Arrangement, Option [Member] | Vesting Each Subsequent Year [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25% |
Note 6 - Stockholders' Equity -
Note 6 - Stockholders' Equity - Stock Option Valuation Assumptions (Details) - Share-Based Payment Arrangement, Option [Member] | 9 Months Ended |
Sep. 30, 2022 | |
Expected dividend yield | 0% |
Minimum [Member] | |
Expected volatility | 80% |
Expected life (Year) | 2 years 6 months |
Risk-free interest rate | 0.82% |
Maximum [Member] | |
Expected volatility | 90% |
Expected life (Year) | 6 years 7 months 6 days |
Risk-free interest rate | 1.47% |
Note 6 - Stockholders' Equity_3
Note 6 - Stockholders' Equity - Summary of Additional Information About Stock Options Outstanding and Exercisable (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Options Outstanding (in shares) | 85,000 | 70,000 |
Options Outstanding, Weighted Average Remaining Contractual Life (Year) | 7 years 4 months 20 days | |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 2.52 | |
Options Outstanding, Aggregate Intrinsic Value | $ 122,050 | |
Options Exercisable (in shares) | 50,000 | |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 2.60 | |
Options Exercisable, Aggregate Intrinsic Value | $ 68,150 |
Note 7 - Income Tax (Details Te
Note 7 - Income Tax (Details Textual) $ in Thousands | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Unrecognized Tax Benefits, Ending Balance | $ 0 |
Open Tax Year | 2017 2018 2019 2020 |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | $ 0 |
Note 8 - Earnings Per Share (De
Note 8 - Earnings Per Share (Details Textual) - shares | 3 Months Ended | 9 Months Ended |
Sep. 30, 2022 | Sep. 30, 2022 | |
Weighted Average Number of Shares Outstanding, Diluted, Adjustment, Total (in shares) | 44,700 | 38,600 |
Note 8 - Earnings Per Share - B
Note 8 - Earnings Per Share - Basic and Diluted Earnings Per Share (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Net income to common stockholders | $ 290,126 | $ 186,811 | $ 1,309,642 | $ 956,453 |
Weighted average number of common shares outstanding - basic (in shares) | 4,521,988 | 4,511,988 | 4,521,988 | 4,508,258 |
Basic net income per share (in dollars per share) | $ 0.06 | $ 0.04 | $ 0.29 | $ 0.21 |
Weighted average number of common shares outstanding - diluted (in shares) | 4,566,679 | 4,526,115 | 4,560,604 | 4,522,694 |
Net income per share - diluted (in dollars per share) | $ 0.06 | $ 0.04 | $ 0.29 | $ 0.21 |