Globalscape (GSB) 10-Q 14 May 15 2015 Q1 Quarterly report Financial data

Document_And_Entity_Informatio

Document And Entity Information	3 Months Ended
	Mar. 31, 2015	8-May-15
Document and Entity Information [Abstract]
Entity Registrant Name	GLOBALSCAPE INC
Document Type	10-Q
Current Fiscal Year End Date	-19
Entity Common Stock, Shares Outstanding		20,762,186
Amendment Flag	FALSE
Entity Central Index Key	1112920
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Smaller Reporting Company
Entity Well-known Seasoned Issuer	No
Document Period End Date	31-Mar-15
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
Current assets:
Cash and cash equivalents	$12,345	$11,358
Accounts receivable (net of allowance for doubtful accounts of $500 and $511 in 2015 and 2014, respectively)	4,715	5,938
Current deferred tax asset	312	402
Prepaid expenses	378	488
Total current assets	17,750	18,186
Fixed assets, net	598	616
Long term investments	3,201	3,185
Intangible assets, net	3,771	3,298
Goodwill	12,712	12,712
Deferred tax asset	302	290
Other assets	100	100
Total assets	38,434	38,387
Current liabilities:
Accounts payable	555	1,111
Accrued expenses	1,284	1,590
Deferred revenue	10,962	11,411
Income taxes payable	182	2
Total current liabilities	12,983	14,114
Deferred revenue, non-current portion	3,310	3,393
Other long term liabilities	51	52
Commitments and contingencies
Stockholders’ equity:
Preferred stock, par value $0.001 per share, 10,000,000 authorized, no shares issued or outstanding	0	0
Common stock, par value $0.001 per share, 40,000,000 authorized, 21,163,767 and 20,989,267 shares issued at March 31, 2015, and December 31, 2014, respectively	21	21
Additional paid-in capital	18,817	18,370
Treasury stock, 403,581 shares, at cost, at March 31, 2015 and December 31, 2014	-1,452	-1,452
Retained earnings	4,704	3,889
Total stockholders’ equity	22,090	20,828
Total liabilities and stockholders’ equity	$38,434	$38,387

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (Parentheticals) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, except Share data, unless otherwise specified
Accounts receivable, allowance for doubtful accounts (in Dollars)	$500	$511
Preferred stock par value (in Dollars per share)	$0.00	$0.00
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in Dollars per share)	$0.00	$0.00
Common stock, authorized	40,000,000	40,000,000
Common stock, issued	21,163,767	20,989,267
Treasury stock, shares	403,581	403,581

Condensed_Consolidated_Stateme

Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) (USD $)	3 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Operating Revenues:
Software licenses	$2,458	$1,912
Maintenance and support	4,034	3,579
Professional services	388	237
Total Revenues	6,880	5,728
Operating Expenses:
Cost of revenues	248	204
Selling, general and administrative	4,578	4,049
Research and development	513	527
Depreciation and amortization	288	141
Total operating expenses	5,627	4,921
Income from operations	1,253	807
Other income (expense), net	11	-20
Income before income taxes	1,264	787
Income tax expense	449	253
Net income	815	534
Comprehensive income	$815	$534
Net income per common share -
Basic (in Dollars per share)	$0.04	$0.03
Diluted (in Dollars per share)	$0.04	$0.03
Weighted average shares outstanding:
Basic (in Shares)	20,647	19,534
Diluted (in Shares)	21,099	20,394

Condensed_Consolidated_Stateme1

Condensed Consolidated Statement of Stockholders' Equity (Unaudited) (USD $)	Common Stock [Member]	Additional Paid-in Capital [Member]	Treasury Stock [Member]	Retained Earnings [Member]	Total
In Thousands, except Share data, unless otherwise specified
Balances at Dec. 31, 2014	$21	$18,370	($1,452)	$3,889	$20,828
Balances (in Shares) at Dec. 31, 2014	20,989,267
Shares issued upon exercise of stock options		290			290
Shares issued upon exercise of stock options (in Shares)	174,500
Stock-based compensation expense:
Stock options		101			101
Restricted stock		47			47
Net increase in excess tax benefit from stock-based compensation		9			9
Net income				815	815
Balances at Mar. 31, 2015	$21	$18,817	($1,452)	$4,704	$22,090
Balances (in Shares) at Mar. 31, 2015	21,163,767

Condensed_Consolidated_Stateme2

Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Operating Activities:
Net income	$815	$534
Adjustments to reconcile net income to net cash provided by operating activities:
Bad debt expense	87	108
Depreciation and amortization	288	141
Stock-based compensation	148	126
Deferred taxes	78	414
Excess tax benefit from share-based compensation	-9	173
Subtotal before changes in operating assets and liabilities	1,407	1,496
Changes in operating assets and liabilities:
Accounts receivable	1,136	251
Prepaid expenses	110	75
Deferred revenue	-532	-84
Accounts payable	-556	38
Accrued expenses	-306	42
Other long-term liabilities	-1	-4
Income tax receivable and payable	189	-157
Net cash provided by operating activities	1,447	1,657
Investing Activities:
Software development costs capitalized	-691	-751
Purchase of property and equipment	-52	-63
Interest reinvested in long term investments	-16	-16
Net cash (used in) investing activities	-759	-830
Financing Activities:
Proceeds from exercise of stock options	290	919
Excess tax benefit from share-based compensation	9	-173
Notes payable principal payments	0	-341
Net cash provided by financing activities	299	405
Net increase in cash	987	1,232
Cash at beginning of period	11,358	9,455
Cash at end of period	12,345	10,687
Cash paid during the period for:
Interest	0	49
Income taxes	$174	$45

1_Nature_of_Business

1. Nature of Business	3 Months Ended
	Mar. 31, 2015
Disclosure Text Block [Abstract]
Nature of Operations [Text Block]	1	Nature of Business
	We provide secure information exchange capabilities for enterprises and consumers through the development and distribution of software, delivery of managed and hosted solutions, and provisioning of associated services. Our solution portfolio facilitates transmission of critical information such as financial data, medical records, customer files, vendor files, personnel files, transaction activity, and other similar documents between diverse and geographically separated network infrastructures while supporting a range of information protection approaches to meet privacy and other security requirements. In addition to enabling secure, flexible transmission of critical information using servers, desktop and notebook computers, and a wide range of network-enabled mobile devices, our products also provide customers with the ability to monitor and audit file transfer activities.  Our primary product is Enhance File Transfer, or EFT. We have other products that complement our EFT product.
	Throughout these notes unless otherwise noted, our references to the 2015 quarter and the 2014 quarter refer to the three months ended March 31, 2015 and 2014, respectively.

2Basis_of_Presentation

2.Basis of Presentation	3 Months Ended
	Mar. 31, 2015
Disclosure Text Block [Abstract]
Basis of Accounting [Text Block]	2	Basis of Presentation
	The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with Rule 10-01 of Regulation S-X, “Interim Financial Statements”, as prescribed by the Securities and Exchange Commission, or SEC. Accordingly, they do not include all information and footnotes required under generally accepted accounting principles in the United States, or GAAP, for complete financial statements. In the opinion of management, all accounting entries necessary for a fair presentation of our financial position and results of operations have been made. The results of operations for any interim period are not necessarily indicative of the results to be expected for the full year. The information included in this Form 10-Q should be read in conjunction with the financial statements and the notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2014, which we refer to as the 2014 Form 10-K, as well as Management’s Discussion and Analysis of Financial Condition and Results of Operations also included in our 2014 Form 10-K and in this report.
	We follow accounting standards set by the Financial Accounting Standards Board. This board sets generally accepted accounting principles in the United States, or GAAP, that we follow in preparing financial statements that report our financial position, results of operations, and sources and uses of cash. We also follow the reporting regulations of the United States Securities and Exchange Commission, or SEC.
	The preparation of financial statements in accordance with GAAP requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities known to exist as of the date the financial statements are published, and the reported amounts of revenues and expenses during the reporting period. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of our financial statements. It is possible the actual results could differ from these estimates and assumptions and could have a material effect on the reported amounts of our financial position and results of operations.

3_Significant_Accounting_Polic

3. Significant Accounting Policies	3 Months Ended
	Mar. 31, 2015
Accounting Policies [Abstract]
Significant Accounting Policies [Text Block]	3	Significant Accounting Policies
	There have been no changes in our significant accounting policies during the 2015 quarter compared to the 2014 quarter or from those described in our 2014 Form 10-K. Listed below is a condensed version of our significant accounting policies.
	Principles of Consolidation
	The accompanying consolidated financial statements of GlobalSCAPE, Inc. and its wholly-owned subsidiary (collectively referred to as the “Company” or “we”) are prepared in conformity with GAAP.  All intercompany accounts and transactions have been eliminated.
	Revenue Recognition
	We develop, market and sell software products. We recognize revenue from a sale transaction when the following conditions are met:
	·	Persuasive evidence of an arrangement exists.
	·	Delivery has occurred or services have been rendered.
	·	The amount is fixed or determinable.
	·	Collection is reasonably assured.
	For a sale transaction not meeting any one of these four criteria, we defer recognition of revenue related to that transaction until all the criteria are met.
	We earn the majority of our software license revenue from software products sold under perpetual software license agreements. At the time our customers purchase these products, they typically also purchase a product maintenance and support, or M&S, agreement. These transactions are multiple element software sales for which we assess the presence of vendor specific objective evidence (“VSOE”) of the fair value of the undelivered elements to determine the portion of these sales to recognize as revenue upon delivery of the software product and the portion of these sales to record as deferred revenue at the time the product is delivered. We amortize the deferred revenue component to revenue in future periods as we deliver the related future services to the customer. For transactions, if any, for which we cannot establish VSOE of fair value of the undelivered elements, we initially record the entire transaction as deferred revenue and amortize that amount to revenue in future periods as we deliver the related future services to the customer.
	Our deferred revenue consists primarily of revenue to be earned in the future as we deliver services under M&S agreements. Certain of our customers will accept, and sometimes pay, our invoices for M&S services prior to the commencement of the M&S period. In such cases, we record accounts receivable and deferred revenue in the same amount at the time we submit an invoice to the customer and commence recognition of the deferred revenue as revenue only after the M&S period begins.
	For our products licensed and delivered under a software-as-a-service transaction on a monthly or other periodic subscription basis, we recognize subscription revenue, including initial setup fees, on a monthly basis over the contractual term of the customer contract as we deliver our products and services. Amounts invoiced or paid prior to this revenue recognition are presented as deferred revenue until earned.
	We provide professional services to our customers consisting primarily of software installation support, operations support and training. We recognize revenue from these services as they are completed and accepted by our customers.
	We collect sales tax on many of our sales. We do not include sales tax collected in our revenue. We record it as a liability payable to taxing authorities.
	Revenue Classifications
	Amounts previously reported as other revenue in the Condensed Consolidated Statements of Operations and Comprehensive Income for the 2014 quarter have been reclassified to software licenses revenue to conform to the presentation for the 2015 quarter.
	Goodwill
	Goodwill is not amortized. On at least an annual basis, we test goodwill for impairment at the reporting unit level. We operate as a single reporting unit.
	When testing goodwill, we first assess qualitative factors to determine whether it is more likely than not (that is, a likelihood of more than 50 percent) that the fair value of our reporting unit is less than its carrying amount, including goodwill. In performing this qualitative assessment, we assess events and circumstances relevant to us including, but not limited to:
	·	Macroeconomic conditions.
	·	Industry and market considerations.
	·	Cost factors and trends for labor and other expenses of operating our business.
	·	Our overall financial performance and outlook for the future.
	·	Trends in the quoted market value and trading of our common stock.
	In considering these and other factors, we consider the extent to which any adverse events and circumstances identified could affect the comparison of our reporting unit’s fair value with its carrying amount. We place more weight on events and circumstances that most affect our reporting unit’s fair value or the carrying amount of our net assets. We consider positive and mitigating events and circumstances that may affect our determination of whether it is more likely than not that the fair value of our reporting unit is less than its carrying amount. We evaluate, on the basis of the weight of the evidence, the significance of all identified events and circumstances in the context of determining whether it is more likely than not that the fair value of our reporting unit is less than its carrying amount.
	If, after assessing the totality of these qualitative events and circumstances, we determine it is not more likely than not that the fair value of our reporting unit is less than its carrying amount, we conclude there is no impairment of goodwill and perform no further testing in accordance with GAAP. If we conclude otherwise, we proceed with performing the first step, and if necessary, the second step, of the two-step goodwill impairment test prescribed by GAAP.
	As of December 31, 2014, after assessing the totality of the relevant events and circumstances, we determined it not more likely than not that the fair value of our reporting unit was less than its carrying amount. Accordingly, we concluded there was no impairment of goodwill as of that date. There have been no material events or changes in circumstances since that time indicating that the carrying amount of goodwill may exceed it fair market value and that interim testing needed to be performed.
	Capitalized Software Development Costs
	When we complete research and development for a software product and have completed a detail program design or a working model of that software product, we capitalize production costs incurred for that software product from that point forward until it is ready for general release to the public. Thereafter, we amortize capitalized software production costs to expense using the straight-line method over the estimated useful life of that product, which is generally three years.
	Research and Development
	We expense research and development costs as incurred.
	Share-Based Compensation
	We measure the cost of share-based payment transactions at the grant date based on the calculated fair value of the award. We recognize this cost as an expense ratably over the recipient’s requisite service period during which that award vests or becomes unrestricted.
	For stock option awards, we estimate their fair value at the grant date using the Black-Scholes option-pricing model considering the following factors:
	·	We estimate expected volatility based on historical volatility of our common stock.
	·	We use primarily the simplified method to derive an expected term which represents an estimate of the time options are expected to remain outstanding. We use this method because our options are plain-vanilla options, and we believe our historical option exercise experience is not adequately indicative of our future expectations.
	·	We base the risk-free rate for periods within the contractual life of the option on the U.S. treasury yield curve in effect at the time of grant.
	For restricted stock awards, we use the quoted price of our common stock on the grant date as the fair value of the award.
	Income Taxes
	We account for income taxes using the asset and liability method.  We record deferred tax assets and liabilities based on the difference between the tax bases of assets and liabilities and their carrying amount for financial reporting purposes as measured by the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Deferred tax assets and liabilities are carried on the balance sheet with the presumption that they will be realizable in future periods in which we generate taxable income.
	We assess the likelihood that deferred tax assets will be realized from future taxable income. Based on this assessment, we provide any necessary valuation allowance on our balance sheet with a corresponding increase in the tax provision on our statement of operations.   Any valuation allowances we establish are determined based upon a number of assumptions, judgments, and estimates, including forecasted earnings, future taxable income, and the relative proportions of revenue and income before taxes in the various domestic jurisdictions in which we operate.
	We account for uncertainty in income taxes using a two-step process to determine the amount of tax benefit to be recognized. First, we evaluate the tax position to determine the likelihood that it will be sustained upon external examination. If the tax position is deemed “more-likely-than-not” to be sustained, we assess the tax position to determine the amount of benefit to recognize in the financial statements. The amount of the benefit we recognize is the largest amount that we believe has a greater than 50% likelihood of being realized upon ultimate settlement. Unrecognized tax benefits represent tax positions for which reserves have been established.
	Use of Estimates
	The preparation of consolidated financial statements in accordance with U.S. GAAP requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities known to exist as of the date the financial statements are published, and the reported amounts of revenues and expenses during the reporting period. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of the Company’s financial statements. It is possible that the actual results could differ from these estimates and assumptions which could have a material effect on the reported amounts of the Company’s financial position and results of operation.
	Recent Accounting Pronouncements
	In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update No. 2014-09 entitled Revenue from Contracts with Customers (Topic 606). The core principle of this guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects consideration to which the entity expects to be entitled in exchange for those goods or services. We are subject to this guidance effective with financial statements we issue for the year ending December 31, 2017, and the quarterly periods during that year. We do not expect the amounts or timing of revenue we report in those future periods under this guidance to be materially affected relative to current guidance.

4_Capitalized_Software_Develop

4. Capitalized Software Development Costs	3 Months Ended
	Mar. 31, 2015
Disclosure Text Block [Abstract]
Intangible Assets Disclosure [Text Block]	4	Capitalized Software Development Costs
	Our capitalized software development costs profile was as follows: ($ in thousands):
			31-Mar			31-Dec
			2015			2014
	Gross capitalized cost		$	4,768		$	4,077
	Accumulated amortization			(997	)		(779	)
	Net balance		$	3,771		$	3,298
			Three Months Ended March 31,
			2015			2014
	Amount capitalized		$	691		$	751
	Amortization expense			218			68
			Released			Unreleased
			Products			Products
	Gross capitalized amount at March 31, 2015		$	2,973		$	1,795
	Future amortization expense:
	Nine months ending December 31, 2015			716
	Year ending December 31,
	2016			817
	2017			414
	2018			29
	Total		$	1,976
	The future amortization expense of the gross capitalized software development costs related to unreleased products will be determinable at a future date when those products are ready for general release to the public.

5_Stock_Options_Restricted_Sto

5. Stock Options, Restricted Stock and Share-Based Compensation	3 Months Ended
	Mar. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	5	Stock Options, Restricted Stock and Share-Based Compensation
	We have stock-based compensation plans under which we have granted, and may grant in the future, incentive stock options, non-qualified stock options, and restricted stock to employees and non-employee members of the Board of Directors. Our share-based compensation expense was as follows ($ in thousands):
			Three Months Ended March 31,
			2015			2014
	Share-based compensation expense		$	148		$	126
	Stock Options
	The GlobalSCAPE, Inc. 2010 Employee Long-Term Equity Incentive Plan is our current stock-based incentive plan for our employees.  Provisions and characteristics of this plan include the following:
	·	It authorizes the issuance of up to three million shares of common stock for stock-based incentives including stock options and restricted stock awards.
	·	The exercise price, term and other conditions applicable to each stock option or stock award granted are determined by the Compensation Committee of the Board of Directors.
	·	The exercise price of stock options is set on the grant date and may not be less than the fair market value per share of our stock at market close on that date.
	·	Stock options we issue generally become exercisable ratably over a three year period and expire ten years from the date of grant.
	·	We issued no restricted stock awards under this plan during the 2015 quarter or the 2014 quarter.
	·	As of March 31, 2015, stock-based incentives for up to 1,032,840 shares remained available for issuance in the future under this plan.
	Our stock option activity has been as follows:
						Weighted
						Average			Weighted Average		Aggregate
						Exercise			Remaining		Intrinsic
			Number of			Price			Contractual		Value
			Shares			Per Share			Term in Years		(000's)
	Outstanding at December 31, 2014			2,022,175		$	2.12			6.07	$	710
	Granted			362,000		$	3.16
	Forfeited			(53,200	)	$	1.97
	Exercised			(174,500	)	$	1.66
	Outstanding at March 31, 2015			2,156,475		$	2.33			6.55	$	2,431
	Exercisable at March 31, 2015			1,287,629		$	2.2			4.83	$	1,663
	Additional information about our stock options is as follows:
			Three Months Ended March 31,
			2015			2014
	Weighted average fair value of options granted		$	1.38		$	1.3
	Intrinsic value of options exercised		$	255,116		$	266,013
	Cash received from stock options exercised		$	289,566		$	919,204
	Number of options that vested			130,654			92,080
	Fair value of options that vested		$	150,114		$	93,579
	Unrecognized compensation expense related to non-vested options at end of year		$	916,372		$	745,759
	Weighted average years over which non-vested option expense will be recognized		$	2.33		$	2.24
	We used the following assumptions to determine compensation expense for our stock options using the Black-Scholes option-pricing model:
			Three Months Ended March 31,
			2015			2014
	Expected volatility			57	%		56	%
	Expected annual dividend yield			2.4	%		0
	Risk free rate of return			1.58	%		1.95	%
	Expected option term (years)			6			6
	Based upon our dividend payment activity in recent years, beginning in the 2015 quarter, we added an expected annual dividend yield to these assumptions.
	Restricted Stock Awards
	The 2006 Non-Employee Directors Long Term Incentive Plan (“2006 Directors Plan”) that was in place during the 2015 quarter provides for the issuance of either stock options or restricted stock awards for up to 500,000 shares of our common stock. Provisions of this plan included the following:
	·	The exercise price, term and other conditions applicable to each stock option or stock award granted are determined by the Compensation Committee of the Board of Directors.
	·	Restricted stock awards are initially issued with a legend restricting transferability of the shares until the recipient satisfies the vesting provision of the award, which is generally continuing service for one year subsequent to the date of the award.
	·	We issued no stock options or restricted stock under this plan during the 2015 quarter or the 2014 quarter.
	On May 14, 2015, the Company’s stockholders approved the adoption and implementation of the 2015 Non-Employee Directors Long Term Incentive Plan.  The provisions of this plan are substantially the same as the 2006 Directors Plan it replaces. We will not issue any additional stock or stock options under the 2006 Directors Plan.
	Our restricted stock awards activity has been as follows:
									Total
						Grant Date			Fair Value of
			Number of			Fair Value			Shares That
			Shares			Per Share			Vested
	Restricted Shares Outstanding at December 31, 2014			80,000		$	2.32
	Shares granted with restrictions
	Shares vested and restrictions removed
	Restricted Shares Outstanding at March 31,2015			80,000
	Shares remaining available under the plan for future issuance			-
	Unrecognized compensation expense for non-vested shares as of March 31,2015
	Expense to be recognized in future periods		$	30,933
	Weighted average number of months over which expense is expected to be recognized			2.28

6_Income_Taxes

6. Income Taxes	3 Months Ended
	Mar. 31, 2015
Income Tax Disclosure [Abstract]
Income Tax Disclosure [Text Block]	6	Income Taxes
	Our income tax expense (benefit) reconciles to an income tax expense resulting from applying an assumed statutory federal income rate of 34% to income before income taxes as follows ($ in thousands):
			Three Months Ended March 31,
			2015			2014
	Income tax expense (benefit) at federal statutory rate		$	430		$	268
	Increase (decrease) in taxes resulting from:
	Domestic production activities deduction			(30	)		(17	)
	State taxes, net of federal benefit			16			(3	)
	Other			33			5
	Income tax expense (benefit) per the statement of operations		$	449		$	253
	As of March 31, 2015, we had federal income tax net operating loss carry forwards of $575,000 available to offset future federal taxable income, if any. These carry forwards expire in 2030 and 2031.
	Legislation has not yet been passed to extend the R&D tax credit into 2015. According, we have not recorded a benefit for that credit in the 2015 quarter. The R&D tax credit was in effect for all of 2014 and, accordingly, the effects of the R&D tax credit are included for the 2014 quarter.

7_Earnings_per_Common_Share

7. Earnings per Common Share	3 Months Ended
	Mar. 31, 2015
Earnings Per Share [Abstract]
Earnings Per Share [Text Block]	7	Earnings per Common Share
	Earnings per share for the periods indicated were as follows (in thousands except per share amounts):
			Three Months Ended March 31,
			2015		2014
	Net income		$	815	$	534
	Weighted average shares outstanding - basic			20,647		19,534
	Stock options			452		860
	Weighted average shares outstanding - diluted			21,099		20,394
	Net income per common share - basic		$	0.04	$	0.03
	Net income per common share - diluted		$	0.04	$	0.03

8Commitments_and_Contingencies

8.Commitments and Contingencies	3 Months Ended
	Mar. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies Disclosure [Text Block]	8	Commitments and Contingencies
	We have agreements with key personnel that provide for severance payments to them in the event of a change in control of the Company, as defined in those agreements, and their employment is terminated in connection with that change in control. In such event, our aggregate severance payments to those employees would be $951,000.

Accounting_Policies_by_Policy_

Accounting Policies, by Policy (Policies)	3 Months Ended
	Mar. 31, 2015
Accounting Policies [Abstract]
Consolidation, Policy [Policy Text Block]	Principles of Consolidation
	The accompanying consolidated financial statements of GlobalSCAPE, Inc. and its wholly-owned subsidiary (collectively referred to as the “Company” or “we”) are prepared in conformity with GAAP.  All intercompany accounts and transactions have been eliminated.
Revenue Recognition, Policy [Policy Text Block]	Revenue Recognition
	We develop, market and sell software products. We recognize revenue from a sale transaction when the following conditions are met:
	·	Persuasive evidence of an arrangement exists.
	·	Delivery has occurred or services have been rendered.
	·	The amount is fixed or determinable.
	·	Collection is reasonably assured.
	For a sale transaction not meeting any one of these four criteria, we defer recognition of revenue related to that transaction until all the criteria are met.
	We earn the majority of our software license revenue from software products sold under perpetual software license agreements. At the time our customers purchase these products, they typically also purchase a product maintenance and support, or M&S, agreement. These transactions are multiple element software sales for which we assess the presence of vendor specific objective evidence (“VSOE”) of the fair value of the undelivered elements to determine the portion of these sales to recognize as revenue upon delivery of the software product and the portion of these sales to record as deferred revenue at the time the product is delivered. We amortize the deferred revenue component to revenue in future periods as we deliver the related future services to the customer. For transactions, if any, for which we cannot establish VSOE of fair value of the undelivered elements, we initially record the entire transaction as deferred revenue and amortize that amount to revenue in future periods as we deliver the related future services to the customer.
	Our deferred revenue consists primarily of revenue to be earned in the future as we deliver services under M&S agreements. Certain of our customers will accept, and sometimes pay, our invoices for M&S services prior to the commencement of the M&S period. In such cases, we record accounts receivable and deferred revenue in the same amount at the time we submit an invoice to the customer and commence recognition of the deferred revenue as revenue only after the M&S period begins.
	For our products licensed and delivered under a software-as-a-service transaction on a monthly or other periodic subscription basis, we recognize subscription revenue, including initial setup fees, on a monthly basis over the contractual term of the customer contract as we deliver our products and services. Amounts invoiced or paid prior to this revenue recognition are presented as deferred revenue until earned.
	We provide professional services to our customers consisting primarily of software installation support, operations support and training. We recognize revenue from these services as they are completed and accepted by our customers.
	We collect sales tax on many of our sales. We do not include sales tax collected in our revenue. We record it as a liability payable to taxing authorities.
Reclassification, Policy [Policy Text Block]	Revenue Classifications
	Amounts previously reported as other revenue in the Condensed Consolidated Statements of Operations and Comprehensive Income for the 2014 quarter have been reclassified to software licenses revenue to conform to the presentation for the 2015 quarter.
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block]	Goodwill
	Goodwill is not amortized. On at least an annual basis, we test goodwill for impairment at the reporting unit level. We operate as a single reporting unit.
	When testing goodwill, we first assess qualitative factors to determine whether it is more likely than not (that is, a likelihood of more than 50 percent) that the fair value of our reporting unit is less than its carrying amount, including goodwill. In performing this qualitative assessment, we assess events and circumstances relevant to us including, but not limited to:
	·	Macroeconomic conditions.
	·	Industry and market considerations.
	·	Cost factors and trends for labor and other expenses of operating our business.
	·	Our overall financial performance and outlook for the future.
	·	Trends in the quoted market value and trading of our common stock.
	In considering these and other factors, we consider the extent to which any adverse events and circumstances identified could affect the comparison of our reporting unit’s fair value with its carrying amount. We place more weight on events and circumstances that most affect our reporting unit’s fair value or the carrying amount of our net assets. We consider positive and mitigating events and circumstances that may affect our determination of whether it is more likely than not that the fair value of our reporting unit is less than its carrying amount. We evaluate, on the basis of the weight of the evidence, the significance of all identified events and circumstances in the context of determining whether it is more likely than not that the fair value of our reporting unit is less than its carrying amount.
	If, after assessing the totality of these qualitative events and circumstances, we determine it is not more likely than not that the fair value of our reporting unit is less than its carrying amount, we conclude there is no impairment of goodwill and perform no further testing in accordance with GAAP. If we conclude otherwise, we proceed with performing the first step, and if necessary, the second step, of the two-step goodwill impairment test prescribed by GAAP.
	As of December 31, 2014, after assessing the totality of the relevant events and circumstances, we determined it not more likely than not that the fair value of our reporting unit was less than its carrying amount. Accordingly, we concluded there was no impairment of goodwill as of that date. There have been no material events or changes in circumstances since that time indicating that the carrying amount of goodwill may exceed it fair market value and that interim testing needed to be performed.
Research, Development, and Computer Software, Policy [Policy Text Block]	Capitalized Software Development Costs
	When we complete research and development for a software product and have completed a detail program design or a working model of that software product, we capitalize production costs incurred for that software product from that point forward until it is ready for general release to the public. Thereafter, we amortize capitalized software production costs to expense using the straight-line method over the estimated useful life of that product, which is generally three years.
Research and Development Expense, Policy [Policy Text Block]	Research and Development
	We expense research and development costs as incurred.
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]	Share-Based Compensation
	We measure the cost of share-based payment transactions at the grant date based on the calculated fair value of the award. We recognize this cost as an expense ratably over the recipient’s requisite service period during which that award vests or becomes unrestricted.
	For stock option awards, we estimate their fair value at the grant date using the Black-Scholes option-pricing model considering the following factors:
	·	We estimate expected volatility based on historical volatility of our common stock.
	·	We use primarily the simplified method to derive an expected term which represents an estimate of the time options are expected to remain outstanding. We use this method because our options are plain-vanilla options, and we believe our historical option exercise experience is not adequately indicative of our future expectations.
	·	We base the risk-free rate for periods within the contractual life of the option on the U.S. treasury yield curve in effect at the time of grant.
	For restricted stock awards, we use the quoted price of our common stock on the grant date as the fair value of the award.
Income Tax, Policy [Policy Text Block]	Income Taxes
	We account for income taxes using the asset and liability method.  We record deferred tax assets and liabilities based on the difference between the tax bases of assets and liabilities and their carrying amount for financial reporting purposes as measured by the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Deferred tax assets and liabilities are carried on the balance sheet with the presumption that they will be realizable in future periods in which we generate taxable income.
	We assess the likelihood that deferred tax assets will be realized from future taxable income. Based on this assessment, we provide any necessary valuation allowance on our balance sheet with a corresponding increase in the tax provision on our statement of operations.   Any valuation allowances we establish are determined based upon a number of assumptions, judgments, and estimates, including forecasted earnings, future taxable income, and the relative proportions of revenue and income before taxes in the various domestic jurisdictions in which we operate.
	We account for uncertainty in income taxes using a two-step process to determine the amount of tax benefit to be recognized. First, we evaluate the tax position to determine the likelihood that it will be sustained upon external examination. If the tax position is deemed “more-likely-than-not” to be sustained, we assess the tax position to determine the amount of benefit to recognize in the financial statements. The amount of the benefit we recognize is the largest amount that we believe has a greater than 50% likelihood of being realized upon ultimate settlement. Unrecognized tax benefits represent tax positions for which reserves have been established.
Use of Estimates, Policy [Policy Text Block]	Use of Estimates
	The preparation of consolidated financial statements in accordance with U.S. GAAP requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities known to exist as of the date the financial statements are published, and the reported amounts of revenues and expenses during the reporting period. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of the Company’s financial statements. It is possible that the actual results could differ from these estimates and assumptions which could have a material effect on the reported amounts of the Company’s financial position and results of operation.
New Accounting Pronouncements, Policy [Policy Text Block]	Recent Accounting Pronouncements
	In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update No. 2014-09 entitled Revenue from Contracts with Customers (Topic 606). The core principle of this guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects consideration to which the entity expects to be entitled in exchange for those goods or services. We are subject to this guidance effective with financial statements we issue for the year ending December 31, 2017, and the quarterly periods during that year. We do not expect the amounts or timing of revenue we report in those future periods under this guidance to be materially affected relative to current guidance.

4_Capitalized_Software_Develop1

4. Capitalized Software Development Costs (Tables)	3 Months Ended
	Mar. 31, 2015
Disclosure Text Block [Abstract]
Schedule of Finite-Lived Intangible Assets [Table Text Block]	Our capitalized software development costs profile was as follows: ($ in thousands):
		31-Mar			31-Dec
		2015			2014
	Gross capitalized cost	$	4,768		$	4,077
	Accumulated amortization		(997	)		(779	)
	Net balance	$	3,771		$	3,298
Finite-lived Intangible Assets Amortization Expense [Table Text Block]		Three Months Ended March 31,
		2015			2014
	Amount capitalized	$	691		$	751
	Amortization expense		218			68
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Table Text Block]		Released			Unreleased
		Products			Products
	Gross capitalized amount at March 31, 2015	$	2,973		$	1,795
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]	Future amortization expense:
	Nine months ending December 31, 2015		716
	Year ending December 31,
	2016		817
	2017		414
	2018		29
	Total	$	1,976

5_Stock_Options_Restricted_Sto1

5. Stock Options, Restricted Stock and Share-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Table Text Block]	Our share-based compensation expense was as follows ($ in thousands):
		Three Months Ended March 31,
		2015			2014
	Share-based compensation expense	$	148		$	126
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]	Our stock option activity has been as follows:
					Weighted
					Average			Weighted Average		Aggregate
					Exercise			Remaining		Intrinsic
		Number of			Price			Contractual		Value
		Shares			Per Share			Term in Years		(000's)
	Outstanding at December 31, 2014		2,022,175		$	2.12			6.07	$	710
	Granted		362,000		$	3.16
	Forfeited		(53,200	)	$	1.97
	Exercised		(174,500	)	$	1.66
	Outstanding at March 31, 2015		2,156,475		$	2.33			6.55	$	2,431
	Exercisable at March 31, 2015		1,287,629		$	2.2			4.83	$	1,663
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable [Table Text Block]	Additional information about our stock options is as follows:
		Three Months Ended March 31,
		2015			2014
	Weighted average fair value of options granted	$	1.38		$	1.3
	Intrinsic value of options exercised	$	255,116		$	266,013
	Cash received from stock options exercised	$	289,566		$	919,204
	Number of options that vested		130,654			92,080
	Fair value of options that vested	$	150,114		$	93,579
	Unrecognized compensation expense related to non-vested options at end of year	$	916,372		$	745,759
	Weighted average years over which non-vested option expense will be recognized	$	2.33		$	2.24
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]	We used the following assumptions to determine compensation expense for our stock options using the Black-Scholes option-pricing model:
		Three Months Ended March 31,
		2015			2014
	Expected volatility		57	%		56	%
	Expected annual dividend yield		2.4	%		0
	Risk free rate of return		1.58	%		1.95	%
	Expected option term (years)		6			6
Nonvested Restricted Stock Shares Activity [Table Text Block]	Our restricted stock awards activity has been as follows:
								Total
					Grant Date			Fair Value of
		Number of			Fair Value			Shares That
		Shares			Per Share			Vested
	Restricted Shares Outstanding at December 31, 2014		80,000		$	2.32
	Shares granted with restrictions
	Shares vested and restrictions removed
	Restricted Shares Outstanding at March 31,2015		80,000
	Shares remaining available under the plan for future issuance		-
	Unrecognized compensation expense for non-vested shares as of March 31,2015
	Expense to be recognized in future periods	$	30,933
	Weighted average number of months over which expense is expected to be recognized		2.28

6_Income_Taxes_Tables

6. Income Taxes (Tables)	3 Months Ended
	Mar. 31, 2015
Income Tax Disclosure [Abstract]
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]	Our income tax expense (benefit) reconciles to an income tax expense resulting from applying an assumed statutory federal income rate of 34% to income before income taxes as follows ($ in thousands):
		Three Months Ended March 31,
		2015			2014
	Income tax expense (benefit) at federal statutory rate	$	430		$	268
	Increase (decrease) in taxes resulting from:
	Domestic production activities deduction		(30	)		(17	)
	State taxes, net of federal benefit		16			(3	)
	Other		33			5
	Income tax expense (benefit) per the statement of operations	$	449		$	253

7_Earnings_per_Common_Share_Ta

7. Earnings per Common Share (Tables)	3 Months Ended
	Mar. 31, 2015
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Earnings per share for the periods indicated were as follows (in thousands except per share amounts):
		Three Months Ended March 31,
		2015		2014
	Net income	$	815	$	534
	Weighted average shares outstanding - basic		20,647		19,534
	Stock options		452		860
	Weighted average shares outstanding - diluted		21,099		20,394
	Net income per common share - basic	$	0.04	$	0.03
	Net income per common share - diluted	$	0.04	$	0.03

3_Significant_Accounting_Polic1

3. Significant Accounting Policies (Details) (USD $)	3 Months Ended	12 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
3. Significant Accounting Policies (Details) [Line Items]
Goodwill, Impairment Loss		$0
Probability of occurrence of event	50.00%
Software and Software Development Costs [Member]
3. Significant Accounting Policies (Details) [Line Items]
Finite-Lived Intangible Asset, Useful Life	3 years

4_Capitalized_Software_Develop2

4. Capitalized Software Development Costs (Details) - Schedule of Finite-Lived Intangible Assets (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
Schedule of Finite-Lived Intangible Assets [Abstract]
Gross capitalized cost	$4,768	$4,077
Accumulated amortization	-997	-779
Net balance	$3,771	$3,298

4_Capitalized_Software_Develop3

4. Capitalized Software Development Costs (Details) - Finite-lived Intangible Assets Amortization Expense (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Finite-lived Intangible Assets Amortization Expense [Abstract]
Amount capitalized	$691	$751
Amortization expense	$218	$68

4_Capitalized_Software_Develop4

4. Capitalized Software Development Costs (Details) - Schedule of Capitalized Costs (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
4. Capitalized Software Development Costs (Details) - Schedule of Capitalized Costs [Line Items]
Gross capitalized amount at March 31, 2015	$4,768	$4,077
Released Products [Member]
4. Capitalized Software Development Costs (Details) - Schedule of Capitalized Costs [Line Items]
Gross capitalized amount at March 31, 2015	2,973
Unreleased Products [Member]
4. Capitalized Software Development Costs (Details) - Schedule of Capitalized Costs [Line Items]
Gross capitalized amount at March 31, 2015	$1,795

4_Capitalized_Software_Develop5

4. Capitalized Software Development Costs (Details) - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Computer Software, Intangible Asset [Member], USD $)	Mar. 31, 2015
In Thousands, unless otherwise specified
Computer Software, Intangible Asset [Member]
4. Capitalized Software Development Costs (Details) - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Line Items]
Nine months ending December 31, 2015	$716
2016	817
2017	414
2018	29
Total	$1,976

5_Stock_Options_Restricted_Sto2

5. Stock Options, Restricted Stock and Share-Based Compensation (Details)	3 Months Ended
	Mar. 31, 2015
Employee Stock Option [Member] | 2010 Employee Long-Term Equity Incentive Plan [Member]
5. Stock Options, Restricted Stock and Share-Based Compensation (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	3,000,000
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	3 years
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period	10 years
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	1,032,840
Restricted Stock [Member] | 2006 Non-Employee Directors Long-term Equity Incentive Plan [Member]
5. Stock Options, Restricted Stock and Share-Based Compensation (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period	1 year
Restricted Stock [Member]
5. Stock Options, Restricted Stock and Share-Based Compensation (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	0
2006 Non-Employee Directors Long-term Equity Incentive Plan [Member]
5. Stock Options, Restricted Stock and Share-Based Compensation (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	500,000

5_Stock_Options_Restricted_Sto3

5. Stock Options, Restricted Stock and Share-Based Compensation (Details) - Schedule Of Share Based Compensation Expense (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Schedule Of Share Based Compensation Expense [Abstract]
Share-based compensation expense	$148	$126

5_Stock_Options_Restricted_Sto4

5. Stock Options, Restricted Stock and Share-Based Compensation (Details) - Schedule of Share-based Compensation, Stock Options, Activity (Employee Stock Option [Member], USD $)	3 Months Ended	12 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Employee Stock Option [Member]
5. Stock Options, Restricted Stock and Share-Based Compensation (Details) - Schedule of Share-based Compensation, Stock Options, Activity [Line Items]
Number of Shares, Outstanding	2,156,475	2,022,175
Average Exercise Price, Outstanding	$2.33	$2.12
Remaining Contractual Term, Outstanding	6 years 200 days	6 years 25 days
Intrinsic Value, Outstanding	$2,431	$710
Exercisable at March 31, 2015	1,287,629
Exercisable at March 31, 2015	$2.20
Exercisable at March 31, 2015	4 years 302 days
Exercisable at March 31, 2015	$1,663
Granted	362,000
Granted	$3.16
Forfeited	-53,200
Forfeited	$1.97
Exercised	-174,500
Exercised	$1.66

5_Stock_Options_Restricted_Sto5

5. Stock Options, Restricted Stock and Share-Based Compensation (Details) - Schedule of Stock Options (Employee Stock Option [Member], USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Employee Stock Option [Member]
5. Stock Options, Restricted Stock and Share-Based Compensation (Details) - Schedule of Stock Options [Line Items]
Weighted average fair value of options granted (in Dollars per share)	$1.38	$1.30
Intrinsic value of options exercised	$255,116	$266,013
Cash received from stock options exercised	289,566	919,204
Number of options that vested (in Shares)	130,654	92,080
Fair value of options that vested	150,114	93,579
Unrecognized compensation expense related to non-vested options at end of year	$916,372	$745,759
Weighted average years over which non-vested option expense will be recognized	2 years 120 days	2 years 87 days

5_Stock_Options_Restricted_Sto6

5. Stock Options, Restricted Stock and Share-Based Compensation (Details) - Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Employee Stock Option [Member])	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Employee Stock Option [Member]
5. Stock Options, Restricted Stock and Share-Based Compensation (Details) - Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Line Items]
Expected volatility	57.00%	56.00%
Expected annual dividend yield	2.40%	0.00%
Risk free rate of return	1.58%	1.95%
Expected option term (years)	6 years	6 years

5_Stock_Options_Restricted_Sto7

5. Stock Options, Restricted Stock and Share-Based Compensation (Details) - Nonvested Restricted Stock Shares Activity (Restricted Stock [Member], USD $)	3 Months Ended
	Mar. 31, 2015
Restricted Stock [Member]
5. Stock Options, Restricted Stock and Share-Based Compensation (Details) - Nonvested Restricted Stock Shares Activity [Line Items]
Restricted Shares Outstanding at December 31, 2014	80,000
Restricted Shares Outstanding at December 31, 2014 (in Dollars per share)	$2.32
Restricted Shares Outstanding at March 31,2015	80,000
Shares remaining available under the plan for future issuance	0
Unrecognized compensation expense for non-vested shares as of March 31,2015
Expense to be recognized in future periods (in Dollars)	$30,933
Weighted average number of months over which expense is expected to be recognized	2 years 102 days

6_Income_Taxes_Details

6. Income Taxes (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
6. Income Taxes (Details) [Line Items]
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	34.00%	34.00%
Operating Loss Carryforwards	$575,000
Domestic Tax Authority [Member] | Minimum [Member]
6. Income Taxes (Details) [Line Items]
Federal Net Operating Loss Carryforwards Expiration Year	2030
Domestic Tax Authority [Member] | Maximum [Member]
6. Income Taxes (Details) [Line Items]
Federal Net Operating Loss Carryforwards Expiration Year	2031

6_Income_Taxes_Details_Schedul

6. Income Taxes (Details) - Schedule of Effective Income Tax Rate Reconciliation (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Schedule of Effective Income Tax Rate Reconciliation [Abstract]
Income tax expense (benefit) at federal statutory rate	$430	$268
Increase (decrease) in taxes resulting from:
Domestic production activities deduction	-30	-17
State taxes, net of federal benefit	16	-3
Other	33	5
Income tax expense (benefit) per the statement of operations	$449	$253

7_Earnings_per_Common_Share_De

7. Earnings per Common Share (Details) - Schedule of Earnings Per Share, Basic and Diluted (USD $)	3 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Schedule of Earnings Per Share, Basic and Diluted [Abstract]
Net income (in Dollars)	$815	$534
Weighted average shares outstanding - basic	20,647	19,534
Stock options	452	860
Weighted average shares outstanding - diluted	21,099	20,394
Net income per common share - basic (in Dollars per share)	$0.04	$0.03
Net income per common share - diluted (in Dollars per share)	$0.04	$0.03

8Commitments_and_Contingencies1

8.Commitments and Contingencies (Details) (USD $)	Mar. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Other Commitment	$951,000