Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Aug. 13, 2021 | |
Details | ||
Registrant CIK | 0001092570 | |
Fiscal Year End | --12-31 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 000-27031 | |
Entity Registrant Name | FULLNET COMMUNICATIONS INC. | |
Entity Incorporation, State or Country Code | OK | |
Entity Tax Identification Number | 73-1473361 | |
Entity Address, Address Line One | 201 Robert S. Kerr Avenue, Suite 210 | |
Entity Address, City or Town | Oklahoma City | |
Entity Address, State or Province | OK | |
Entity Address, Postal Zip Code | 73102 | |
City Area Code | 405 | |
Local Phone Number | 236-8200 | |
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 | 16,660,121 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS June 30, 2021 Unaudited) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 2,096,862 | $ 1,407,917 |
Accounts receivable, net | 28,150 | 30,751 |
Prepaid expenses and other current assets | 34,126 | 19,640 |
Total current assets | 2,159,138 | 1,458,308 |
PROPERTY AND EQUIPMENT, net | 63,701 | 62,967 |
OTHER ASSETS AND INTANGIBLE ASSETS | 23,408 | 26,158 |
RIGHT OF USE LEASED ASSET | 459,470 | 514,682 |
DEFERRED TAX ASSET | 147,208 | 339,197 |
TOTAL ASSETS | 2,852,925 | 2,401,312 |
CURRENT LIABILITIES | ||
Accounts payable | 50,008 | 50,205 |
Accrued and other liabilities | 417,310 | 389,053 |
Dividends payable | 0 | 168,079 |
Operating lease liability - current portion | 117,692 | 112,812 |
Deferred revenue | 872,308 | 777,029 |
Total current liabilities | 1,457,318 | 1,497,178 |
OPERATING LEASE LIABILITY - net of current portion | 341,778 | 401,870 |
Total liabilities | 1,799,096 | 1,899,048 |
SHAREHOLDERS' EQUITY | ||
Preferred Stock, Value | 355,303 | 353,505 |
Common Stock, Value | 167 | 165 |
Additional paid-in capital | 9,066,598 | 9,064,855 |
Accumulated deficit | (8,368,239) | (8,916,261) |
Total shareholders' equity | 1,053,829 | 502,264 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 2,852,925 | $ 2,401,312 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS June 30, 2021 Unaudited) - Parenthetical - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
Details | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Preferred Stock, Shares Issued | 568,257 | 568,257 |
Preferred Stock, Shares Outstanding | 568,257 | 568,257 |
Common Stock, Par or Stated Value Per Share | $ 0.00001 | $ 0.00001 |
Common Stock, Shares Authorized | 40,000,000 | 40,000,000 |
Common Stock, Shares, Issued | 16,660,121 | 16,457,121 |
Common Stock, Shares, Outstanding | 16,660,121 | 16,457,121 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
REVENUES | ||||
Total revenue | $ 994,891 | $ 888,435 | $ 2,020,875 | $ 1,602,782 |
OPERATING COSTS AND EXPENSES | ||||
Cost of revenue | 167,088 | 133,524 | 315,961 | 242,195 |
Selling, general and administrative expenses | 477,961 | 611,194 | 980,325 | 1,165,856 |
Depreciation and amortization | 2,643 | 2,209 | 5,113 | 4,399 |
Total operating costs and expenses | 647,692 | 746,927 | 1,301,399 | 1,412,450 |
INCOME FROM OPERATIONS | 347,199 | 141,508 | 719,476 | 190,332 |
OTHER INCOME | 20,209 | 117 | 20,535 | 1,900 |
NET INCOME BEFORE INCOME TAX | 367,408 | 141,625 | 740,011 | 192,232 |
Income tax expense - deferred | (95,320) | 0 | (191,989) | 0 |
Net Income (Loss) Attributable to Parent | 272,088 | 141,625 | 548,022 | 192,232 |
Preferred stock dividends | (13,684) | (13,163) | (27,369) | (33,538) |
Net income available to common shareholders | $ 258,404 | $ 128,462 | $ 520,653 | $ 158,694 |
Earnings Per Share | ||||
Basic income per share | $ 0.02 | $ 0.01 | $ 0.03 | $ 0.01 |
Diluted income per share | $ 0.01 | $ 0.01 | $ 0.03 | $ 0.01 |
Weighted Average Number of Shares Outstanding, Basic | 16,660,121 | 14,542,192 | 16,565,911 | 14,542,192 |
Weighted Average Number of Shares Outstanding, Diluted | 19,588,985 | 17,599,562 | 19,471,962 | 17,182,766 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (DEFICIT) (UNAUDITED) - USD ($) | Common Stock | Preferred Stock | Additional Paid In Capital | Accumulated Deficit | Total |
Equity Balance, Starting at Dec. 31, 2019 | $ 145 | $ 554,516 | $ 8,939,519 | $ (9,820,668) | $ (326,488) |
Shares Outstanding, Starting at Dec. 31, 2019 | 14,539,675 | 875,054 | |||
Shares Granted, Value, Share-based Payment Arrangement, after Forfeiture | $ 0 | $ 0 | 23,442 | 0 | 23,442 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 0 | 0 | |||
Amortization of increasing dividend rate preferred stock discount | $ 0 | $ 3,595 | (3,595) | 0 | 0 |
Net Income (Loss) | 0 | 0 | 0 | 192,232 | 192,232 |
Equity Balance, Ending at Jun. 30, 2020 | $ 150 | $ 349,910 | 9,046,267 | (9,628,436) | (232,109) |
Shares Outstanding, Ending at Jun. 30, 2020 | 14,997,749 | 568,257 | |||
Common stock issued for repurchase of preferred stock, Value | $ 5 | $ 0 | 22,899 | 0 | 22,904 |
Common stock issued for repurchase of preferred stock, Shares | 458,074 | 0 | |||
Preferred stock repurchased, Value | $ 0 | $ (235,951) | 37,927 | 0 | (198,024) |
Preferred stock repurchased, Shares | 0 | (356,797) | |||
Repurchased preferred stock assigned to settle related party liability, Value | $ 0 | $ 27,750 | 26,075 | 0 | 53,825 |
Repurchased preferred stock assigned to settle related party liability, Shares | 0 | 50,000 | |||
Equity Balance, Starting at Mar. 31, 2020 | $ 145 | $ 557,390 | 8,937,876 | (9,770,061) | (274,650) |
Shares Outstanding, Starting at Mar. 31, 2020 | 14,539,675 | 875,054 | |||
Shares Granted, Value, Share-based Payment Arrangement, after Forfeiture | $ 0 | $ 0 | 22,211 | 0 | 22,211 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 0 | 0 | |||
Amortization of increasing dividend rate preferred stock discount | $ 0 | $ 721 | (721) | 0 | 0 |
Net Income (Loss) | 0 | 0 | 0 | 141,625 | 141,625 |
Equity Balance, Ending at Jun. 30, 2020 | $ 150 | $ 349,910 | 9,046,267 | (9,628,436) | (232,109) |
Shares Outstanding, Ending at Jun. 30, 2020 | 14,997,749 | 568,257 | |||
Common stock issued for repurchase of preferred stock, Value | $ 5 | $ 0 | 22,899 | 0 | 22,904 |
Common stock issued for repurchase of preferred stock, Shares | 458,074 | 0 | |||
Preferred stock repurchased, Value | $ 0 | $ (235,951) | 37,927 | 0 | (198,024) |
Preferred stock repurchased, Shares | 0 | (356,797) | |||
Repurchased preferred stock assigned to settle related party liability, Value | $ 0 | $ 27,750 | 26,075 | 0 | 53,825 |
Repurchased preferred stock assigned to settle related party liability, Shares | 0 | 50,000 | |||
Equity Balance, Starting at Dec. 31, 2020 | $ 165 | $ 353,505 | 9,064,855 | (8,916,261) | 502,264 |
Shares Outstanding, Starting at Dec. 31, 2020 | 16,457,121 | 568,257 | |||
Shares Granted, Value, Share-based Payment Arrangement, after Forfeiture | $ 0 | $ 0 | 2,934 | 0 | 2,934 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 0 | 0 | |||
Amortization of increasing dividend rate preferred stock discount | $ 0 | $ 1,798 | (1,798) | 0 | 0 |
Net Income (Loss) | 0 | 0 | 0 | 548,022 | 548,022 |
Equity Balance, Ending at Jun. 30, 2021 | $ 167 | $ 355,303 | 9,066,598 | (8,368,239) | 1,053,829 |
Shares Outstanding, Ending at Jun. 30, 2021 | 16,660,121 | 568,257 | |||
Stock Issued During Period, Value, Stock Options Exercised | $ 2 | $ 0 | 607 | 0 | 609 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 203,000 | ||||
Equity Balance, Starting at Mar. 31, 2021 | $ 167 | $ 354,404 | 9,066,030 | (8,640,327) | 780,274 |
Shares Outstanding, Starting at Mar. 31, 2021 | 16,660,121 | 568,257 | |||
Shares Granted, Value, Share-based Payment Arrangement, after Forfeiture | $ 0 | $ 0 | 1,467 | 0 | 1,467 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 0 | 0 | |||
Amortization of increasing dividend rate preferred stock discount | $ 0 | $ 899 | (899) | 0 | 0 |
Net Income (Loss) | 0 | 0 | 0 | 272,088 | 272,088 |
Equity Balance, Ending at Jun. 30, 2021 | $ 167 | $ 355,303 | $ 9,066,598 | $ (8,368,239) | $ 1,053,829 |
Shares Outstanding, Ending at Jun. 30, 2021 | 16,660,121 | 568,257 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 548,022 | $ 192,232 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 5,113 | 4,399 |
Noncash lease expense | 55,212 | 50,728 |
Provision for deferred tax expense | 191,989 | 0 |
Stock options expense | 2,934 | 23,442 |
Provision for (recovery of) uncollectible accounts receivable | 4 | 2,523 |
Common stock issued for prior preferred stock repurchase charged to expense | 0 | 3,280 |
Change in Operating Capital | ||
Accounts payable | (197) | 174 |
Accrued and other liabilities | 28,257 | (39,309) |
Deferred revenue | 95,279 | 214,498 |
Operating lease obligation | (55,212) | (50,728) |
Accounts receivable | 2,597 | (7,179) |
Prepaid expenses and other assets | (11,736) | (31,760) |
Net cash provided by operating activities | 862,262 | 362,300 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Cash paid for property and equipment | (5,847) | (5,047) |
Net cash used in investing activities | (5,847) | (5,047) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from exercise of options | 609 | 0 |
Payments for repurchase of preferred stock | 0 | (178,400) |
Payment of dividends payable - preferred stock | (168,079) | 0 |
Net cash used in financing activities | (167,470) | (178,400) |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 688,945 | 178,853 |
Cash and Cash Equivalents, at Carrying Value, Beginning Balance | 1,407,917 | 612,005 |
Cash and Cash Equivalents, at Carrying Value, Ending Balance | 2,096,862 | 790,858 |
Cash Flow, Noncash Investing and Financing Activities Disclosure | ||
Repurchased preferred stock assigned to settle related party liability | 0 | 53,825 |
Common stock issued in connection with repurchase of preferred stock | 0 | 19,624 |
Amortization of increasing dividend rate preferred stock discount | $ 1,798 | $ 3,595 |
1. UNAUDITED INTERIM FINANCIAL
1. UNAUDITED INTERIM FINANCIAL STATEMENTS | 6 Months Ended |
Jun. 30, 2021 | |
Notes | |
1. UNAUDITED INTERIM FINANCIAL STATEMENTS | 1. UNAUDITED INTERIM FINANCIAL STATEMENTS The unaudited condensed consolidated financial statements and related notes of FullNet Communications, Inc. and its subsidiaries (“we”, “our”, collectively, the “Company”) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been omitted pursuant to such rules and regulations. The accompanying unaudited condensed consolidated financial statements and related notes should be read in conjunction with the audited consolidated financial statements of the Company and notes thereto for the year ended December 31, 2020. The information furnished reflects, in the opinion of management, all adjustments, consisting of normal recurring accruals, necessary for a fair presentation of the results of the interim periods presented. Operating results of the interim period are not necessarily indicative of the amounts that will be reported for the year ending December 31, 2021. COVID-19 Pandemic The global outbreak of the coronavirus disease (COVID-19), which the World Health Organization has characterized as a “pandemic”, has resulted in a crisis affecting economies and financial markets worldwide. The pandemic, and its attendant economic damage, has impacted market segments in different ways, with industries experiencing significant losses while others actually gained. We believe that the COVID-19 pandemic, with its shifts in human interactions and communications, resulted for us in a net addition of new customers and the sale of additional services to existing customers and increased interest in our automated group text and voice message delivery services. As the COVID-19 pandemic subsides, it is possible that the increases we have experienced may slow, resulting in adverse effects on our business, results of operations and financial condition. The ultimate extent of its impact on us will depend on future developments, which are highly uncertain and cannot be predicted, including the extent to which people return to preexisting patterns of behavior when the COVID-19 pandemic subsides. Recently Adopted Accounting Pronouncements In December 2019, the FASB issued ASU No. 2019-12, "Simplifying the Accounting for Income Taxes", which simplifies the accounting for income taxes by removing certain exceptions to the general principles for income taxes. This guidance is effective for interim and annual periods beginning after December 15, 2020, with early adoption permitted. The Company adopted this guidance effective January 1, 2021. The adoption of ASU No. 2019-12 did not have a material impact on the Company’s consolidated financial statements. Income (Loss) Per Share Income (loss) per share – basic is calculated by dividing net income (loss) by the weighted average number of shares of stock outstanding during the year, including shares issuable without additional consideration. Income per share, assuming dilution, is calculated by dividing net income by the weighted average number of shares outstanding during the year adjusted for the effect of dilutive potential shares calculated using the treasury stock method for options and warrants and the “if converted” method for convertible preferred stock. The reconciliation of basic and diluted income per share are as follows: Three Months Ended Six Months Ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Net income: Net income from operations $ 272,088 $ 141,625 $ 548,022 $ 192,232 Preferred stock dividends (13,684) (13,163) (27,369) (33,538) Net income available to common shareholders 258,404 128,462 520,653 158,694 Basic income per share: Weighted average common shares outstanding used in income per share 16,660,121 14,542,192 16,565,911 14,542,192 Basic income per share 0.02 0.01 0.03 0.01 Diluted income per share: Shares used in diluted income per share 19,588,985 17,599,562 19,471,962 17,182,766 Diluted income per share 0.01 0.01 0.03 0.01 Computation of shares used in income per share: Weighted average shares and share equivalents outstanding – basic 16,660,121 14,542,192 16,565,911 14,542,192 Effect of dilutive stock options 2,642,694 2,717,207 2,620,629 2,315,321 Effect of dilutive warrants 286,170 340,163 285,422 325,253 Weighted average shares and share equivalents outstanding – diluted 19,588,985 17,599,562 19,471,962 17,182,766 Schedule of Anti-dilutive Securities Excluded Three Months Ended Six Months Ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Stock options - 269,000 - 299,000 Preferred stock 568,257 568,257 568,257 568,257 Total anti-dilutive securities excluded 568,257 837,257 568,257 867,257 Anti-dilutive securities consist of stock options and convertible preferred stock whose exercise price or conversion price, respectively, was greater than the average market price of the common stock. |
2. STOCK BASED COMPENSATION
2. STOCK BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2021 | |
Notes | |
2. STOCK BASED COMPENSATION | 2. STOCK BASED COMPENSATION The following table summarizes the Company’s employee stock option activity for the six months ended June 30, 2021: Schedule of Employee Stock Option Activity Options Weighted average exercise price Weighted average remaining contractual life (yrs) Aggregate Intrinsic value Options outstanding, December 31, 2020 2,989,963 $0.012 7.19 Options exercisable, December 31, 2020 1,727,463 $0.010 5.93 $ 155,595 Options exercised during the period 203,000 $0.003 Options expired during the period 31,334 $0.003 Options outstanding June 30, 2021 2,755,629 $0.012 7.00 Options exercisable June 30, 2021 1,912,133 $0.012 6.37 $ 494,078 During the six months ended June 30, 2021, certain employees of the Company exercised options to purchase 203,000 restricted shares of the Company’s common stock. Proceeds from the exercise of the Options were $609. The common shares were issued pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended, without payment of any form of commissions or other remuneration. Total stock-based compensation expense for the six months ended June 30, 2021 was $2,934 of which all was related to options issued in prior years. Stock-based compensation is measured at the grant date, based on the calculated fair value of the option, and is recognized as an expense on a straight-line basis over the requisite employee service period (generally the vesting period of the grant). |
3. WARRANT ACTIVITY
3. WARRANT ACTIVITY | 6 Months Ended |
Jun. 30, 2021 | |
Notes | |
3. WARRANT ACTIVITY | 3. WARRANT ACTIVITY The following table summarizes the Company’s warrant activity for the six months ended June 30, 2021: Schedule of Warrant Activity Warrants Weighted average exercise price Weighted average remaining contractual life (yrs) Aggregate Intrinsic value Warrants outstanding December 31, 2020 290,000 $0.004 2.41 Warrants exercisable December 31, 2020 290,000 $0.004 2.41 $ 27,850 Warrants outstanding June 30, 2021 290,000 $0.004 1.91 Warrants exercisable June 30, 2021 290,000 $0.004 1.91 $ 77,150 During the six months ended June 30, 2021, no warrants were issued or exercised. |
4. SERIES A CONVERTIBLE PREFERR
4. SERIES A CONVERTIBLE PREFERRED STOCK | 6 Months Ended |
Jun. 30, 2021 | |
Notes | |
4. SERIES A CONVERTIBLE PREFERRED STOCK | 4. SERIES A CONVERTIBLE PREFERRED STOCK On January 4, 2021 the Company paid the December 7, 2020 dividends declared on its Series A Convertible Preferred Stock of $168,079. As of June 30, 2021, the aggregate outstanding accumulated arrearages of cumulative dividend was $25,571 or if issued in common shares, 94,710 shares. The amortization of the increasing dividend rate preferred stock discount for the six months ended June 30, 2021 was $1,798. |
5. LEASES
5. LEASES | 6 Months Ended |
Jun. 30, 2021 | |
Notes | |
5. LEASES | 5. LEASES We determine if a contract contains a lease by evaluating the nature and substance of the agreement. The only lease that we have is the real estate lease for our headquarters facility, which was originally executed on December 2, 1999, and which has been extended several times. This lease was renewed for a term of five additional years. We recognize lease expense for this lease on a straight-line basis over the lease term. We used our incremental borrowing rate (8.5%) in determining the present value of the lease payments over the lease expiration date of December 31, 2024. At June 30, 2021, the remaining future cash payments under our lease total to $532,812. For the six months ended June 30, 2021, we amortized $55,212 of our operating right-of-use, or ROU, asset and made payments of the associated lease liability for the same amount. At June 30, 2021, an operating ROU asset and liability of $459,470, each, are included on our condensed consolidated balance sheet. For each of the six months ended June 30, 2021 and 2020, our fixed operating lease cost was $76,116, which is included within operating costs and expenses in our condensed consolidated statements of operations. Future minimum lease payments under non-cancellable operating lease as of June 30, 2021, were as follows: Year ending December 31, 2021 (six months remaining) $ 76,116 2022 152,232 2023 152,232 2024 152,232 Total future minimum lease payments 532,812 Present value of discount (73,342) Current portion lease liability (117,692) Long-term lease liability $ 341,778 |
1. UNAUDITED INTERIM FINANCIA_2
1. UNAUDITED INTERIM FINANCIAL STATEMENTS: Recently Adopted Accounting Pronouncements (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Policies | |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In December 2019, the FASB issued ASU No. 2019-12, "Simplifying the Accounting for Income Taxes", which simplifies the accounting for income taxes by removing certain exceptions to the general principles for income taxes. This guidance is effective for interim and annual periods beginning after December 15, 2020, with early adoption permitted. The Company adopted this guidance effective January 1, 2021. The adoption of ASU No. 2019-12 did not have a material impact on the Company’s consolidated financial statements. |
1. UNAUDITED INTERIM FINANCIA_3
1. UNAUDITED INTERIM FINANCIAL STATEMENTS: Income (Loss) Per Share (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Policies | |
Income (Loss) Per Share | Income (Loss) Per Share Income (loss) per share – basic is calculated by dividing net income (loss) by the weighted average number of shares of stock outstanding during the year, including shares issuable without additional consideration. Income per share, assuming dilution, is calculated by dividing net income by the weighted average number of shares outstanding during the year adjusted for the effect of dilutive potential shares calculated using the treasury stock method for options and warrants and the “if converted” method for convertible preferred stock. The reconciliation of basic and diluted income per share are as follows: Three Months Ended Six Months Ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Net income: Net income from operations $ 272,088 $ 141,625 $ 548,022 $ 192,232 Preferred stock dividends (13,684) (13,163) (27,369) (33,538) Net income available to common shareholders 258,404 128,462 520,653 158,694 Basic income per share: Weighted average common shares outstanding used in income per share 16,660,121 14,542,192 16,565,911 14,542,192 Basic income per share 0.02 0.01 0.03 0.01 Diluted income per share: Shares used in diluted income per share 19,588,985 17,599,562 19,471,962 17,182,766 Diluted income per share 0.01 0.01 0.03 0.01 Computation of shares used in income per share: Weighted average shares and share equivalents outstanding – basic 16,660,121 14,542,192 16,565,911 14,542,192 Effect of dilutive stock options 2,642,694 2,717,207 2,620,629 2,315,321 Effect of dilutive warrants 286,170 340,163 285,422 325,253 Weighted average shares and share equivalents outstanding – diluted 19,588,985 17,599,562 19,471,962 17,182,766 Schedule of Anti-dilutive Securities Excluded Three Months Ended Six Months Ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Stock options - 269,000 - 299,000 Preferred stock 568,257 568,257 568,257 568,257 Total anti-dilutive securities excluded 568,257 837,257 568,257 867,257 Anti-dilutive securities consist of stock options and convertible preferred stock whose exercise price or conversion price, respectively, was greater than the average market price of the common stock. |
1. UNAUDITED INTERIM FINANCIA_4
1. UNAUDITED INTERIM FINANCIAL STATEMENTS: COVID-19 Pandemic (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Tables/Schedules | |
COVID-19 Pandemic | COVID-19 Pandemic The global outbreak of the coronavirus disease (COVID-19), which the World Health Organization has characterized as a “pandemic”, has resulted in a crisis affecting economies and financial markets worldwide. The pandemic, and its attendant economic damage, has impacted market segments in different ways, with industries experiencing significant losses while others actually gained. We believe that the COVID-19 pandemic, with its shifts in human interactions and communications, resulted for us in a net addition of new customers and the sale of additional services to existing customers and increased interest in our automated group text and voice message delivery services. As the COVID-19 pandemic subsides, it is possible that the increases we have experienced may slow, resulting in adverse effects on our business, results of operations and financial condition. The ultimate extent of its impact on us will depend on future developments, which are highly uncertain and cannot be predicted, including the extent to which people return to preexisting patterns of behavior when the COVID-19 pandemic subsides. |
1. UNAUDITED INTERIM FINANCIA_5
1. UNAUDITED INTERIM FINANCIAL STATEMENTS: Income (Loss) Per Share: Schedule of Earnings Per Share, Basic and Diluted (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Tables/Schedules | |
Schedule of Earnings Per Share, Basic and Diluted | Three Months Ended Six Months Ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Net income: Net income from operations $ 272,088 $ 141,625 $ 548,022 $ 192,232 Preferred stock dividends (13,684) (13,163) (27,369) (33,538) Net income available to common shareholders 258,404 128,462 520,653 158,694 Basic income per share: Weighted average common shares outstanding used in income per share 16,660,121 14,542,192 16,565,911 14,542,192 Basic income per share 0.02 0.01 0.03 0.01 Diluted income per share: Shares used in diluted income per share 19,588,985 17,599,562 19,471,962 17,182,766 Diluted income per share 0.01 0.01 0.03 0.01 Computation of shares used in income per share: Weighted average shares and share equivalents outstanding – basic 16,660,121 14,542,192 16,565,911 14,542,192 Effect of dilutive stock options 2,642,694 2,717,207 2,620,629 2,315,321 Effect of dilutive warrants 286,170 340,163 285,422 325,253 Weighted average shares and share equivalents outstanding – diluted 19,588,985 17,599,562 19,471,962 17,182,766 |
1. UNAUDITED INTERIM FINANCIA_6
1. UNAUDITED INTERIM FINANCIAL STATEMENTS: Income (Loss) Per Share: Schedule of Anti-dilutive Securities Excluded (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Tables/Schedules | |
Schedule of Anti-dilutive Securities Excluded | Schedule of Anti-dilutive Securities Excluded Three Months Ended Six Months Ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Stock options - 269,000 - 299,000 Preferred stock 568,257 568,257 568,257 568,257 Total anti-dilutive securities excluded 568,257 837,257 568,257 867,257 |
2. STOCK BASED COMPENSATION_ Sc
2. STOCK BASED COMPENSATION: Schedule of Employee Stock Option Activity (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Tables/Schedules | |
Schedule of Employee Stock Option Activity | Schedule of Employee Stock Option Activity Options Weighted average exercise price Weighted average remaining contractual life (yrs) Aggregate Intrinsic value Options outstanding, December 31, 2020 2,989,963 $0.012 7.19 Options exercisable, December 31, 2020 1,727,463 $0.010 5.93 $ 155,595 Options exercised during the period 203,000 $0.003 Options expired during the period 31,334 $0.003 Options outstanding June 30, 2021 2,755,629 $0.012 7.00 Options exercisable June 30, 2021 1,912,133 $0.012 6.37 $ 494,078 |
3. WARRANT ACTIVITY_ Schedule o
3. WARRANT ACTIVITY: Schedule of Warrant Activity (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Tables/Schedules | |
Schedule of Warrant Activity | Schedule of Warrant Activity Warrants Weighted average exercise price Weighted average remaining contractual life (yrs) Aggregate Intrinsic value Warrants outstanding December 31, 2020 290,000 $0.004 2.41 Warrants exercisable December 31, 2020 290,000 $0.004 2.41 $ 27,850 Warrants outstanding June 30, 2021 290,000 $0.004 1.91 Warrants exercisable June 30, 2021 290,000 $0.004 1.91 $ 77,150 |
5. LEASES_ Schedule of Future M
5. LEASES: Schedule of Future Minimum Rental Payments for Operating Leases (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Tables/Schedules | |
Schedule of Future Minimum Rental Payments for Operating Leases | Year ending December 31, 2021 (six months remaining) $ 76,116 2022 152,232 2023 152,232 2024 152,232 Total future minimum lease payments 532,812 Present value of discount (73,342) Current portion lease liability (117,692) Long-term lease liability $ 341,778 |
1. UNAUDITED INTERIM FINANCIA_7
1. UNAUDITED INTERIM FINANCIAL STATEMENTS: Income (Loss) Per Share: Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Net income: | ||||
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | $ 272,088 | $ 141,625 | $ 548,022 | $ 192,232 |
Preferred stock dividends | (13,684) | (13,163) | (27,369) | (33,538) |
Net income available to common shareholders | $ 258,404 | $ 128,462 | $ 520,653 | $ 158,694 |
Basic income per share: | ||||
Weighted average shares and share equivalents outstanding –basic | 16,660,121 | 14,542,192 | 16,565,911 | 14,542,192 |
Basic income per share | $ 0.02 | $ 0.01 | $ 0.03 | $ 0.01 |
Diluted income per share: | ||||
Shares used in diluted income per share | 19,588,985 | 17,599,562 | 19,471,962 | 17,182,766 |
Diluted income per share | $ 0.01 | $ 0.01 | $ 0.03 | $ 0.01 |
Computation of shares used in income per share: | ||||
Weighted Average Number of Shares Outstanding, Basic | 16,660,121 | 14,542,192 | 16,565,911 | 14,542,192 |
Effect of dilutive stock options | $ 2,642,694 | $ 2,717,207 | $ 2,620,629 | $ 2,315,321 |
Effect of dilutive warrants | $ 286,170 | $ 340,163 | $ 285,422 | $ 325,253 |
Weighted Average Number of Shares Outstanding, Diluted | 19,588,985 | 17,599,562 | 19,471,962 | 17,182,766 |
1. UNAUDITED INTERIM FINANCIA_8
1. UNAUDITED INTERIM FINANCIAL STATEMENTS: Income (Loss) Per Share: Schedule of Anti-dilutive Securities Excluded (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Details | ||||
Anti-dilutive Securities Excluded, Stock Options | 0 | 269,000 | 0 | 299,000 |
Preferred stock | 568,257 | 568,257 | 568,257 | 568,257 |
Total anti-dilutive securities excluded | 568,257 | 837,257 | 568,257 | 867,257 |
2. STOCK BASED COMPENSATION_ _2
2. STOCK BASED COMPENSATION: Schedule of Employee Stock Option Activity (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2021 |
Stock Issued During Period, Value, Stock Options Exercised | $ 609 | ||
Employee stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Beginning Balance | 2,989,963 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Beginning Balance | $ 0.012 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 7 years | 7 years 2 months 8 days | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 1,727,463 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ 0.010 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 6 years 4 months 13 days | 5 years 11 months 4 days | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 155,595 | ||
Stock Issued During Period, Value, Stock Options Exercised | $ 203,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 0.003 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period | 31,334 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Expirations in Period, Weighted Average Exercise Price | $ 0.003 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance | 2,755,629 | 2,989,963 | 2,755,629 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Ending Balance | $ 0.012 | $ 0.012 | $ 0.012 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 1,912,133 | 1,727,463 | 1,912,133 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ 0.012 | $ 0.010 | $ 0.012 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 494,078 | $ 155,595 | $ 494,078 |
2. STOCK BASED COMPENSATION (De
2. STOCK BASED COMPENSATION (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Details | ||
Proceeds from exercise of options | $ 609 | $ 0 |
Share-based Payment Arrangement, Expense | $ 2,934 |
3. WARRANT ACTIVITY_ Schedule_2
3. WARRANT ACTIVITY: Schedule of Warrant Activity (Details) - Warrants - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 1 year 10 months 28 days | 2 years 4 months 28 days |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 1 year 10 months 28 days | 2 years 4 months 28 days |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance | 290,000 | 290,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Ending Balance | $ 0.004 | $ 0.004 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 290,000 | 290,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ 0.004 | $ 0.004 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 77,150 | $ 27,850 |
4. SERIES A CONVERTIBLE PREFE_2
4. SERIES A CONVERTIBLE PREFERRED STOCK (Details) | 6 Months Ended |
Jun. 30, 2021USD ($)shares | |
Details | |
Aggregate outstanding accumulated arrearages of cumulative dividend | $ 25,571 |
Aggregate outstanding accumulated arrearages of cumulative dividend, Shares | shares | 94,710 |
Amortization of the increasing dividend rate preferred stock discount | $ 1,798 |
5. LEASES (Details)
5. LEASES (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Details | |||
Operating Leases, Future Minimum Payments Due | $ 532,812 | ||
Noncash lease expense | 55,212 | $ 50,728 | |
RIGHT OF USE LEASED ASSET | 459,470 | $ 514,682 | |
Fixed operating lease cost | $ 76,116 | ||
Cash paid for amounts included in the measurement of lease liability | $ 76,116 |
5. LEASES_ Schedule of Future_2
5. LEASES: Schedule of Future Minimum Rental Payments for Operating Leases (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Details | ||
2021 (six months remaining) | $ 76,116 | |
2022 | 152,232 | |
2023 | 152,232 | |
2024 | 152,232 | |
Total future minimum lease payments | 532,812 | |
Present value of discount | (73,342) | |
Operating lease liability - current portion | (117,692) | $ (112,812) |
Long-term lease liability | $ 341,778 |