Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Aug. 07, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | GLOBALSCAPE INC | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 20,870,466 | |
Amendment Flag | false | |
Entity Central Index Key | 1,112,920 | |
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 | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 12,853 | $ 11,358 |
Accounts receivable (net of allowance for doubtful accounts of $500 and $511 in 2015 and 2014, respectively) | 4,681 | 5,938 |
Current deferred tax asset | 406 | 402 |
Prepaid expenses | 298 | 488 |
Total current assets | 18,238 | 18,186 |
Fixed assets, net | 569 | 616 |
Long term investments | 3,217 | 3,185 |
Capitalized software development costs | 3,860 | 3,298 |
Goodwill | 12,712 | 12,712 |
Deferred tax asset | 346 | 290 |
Other assets | 95 | 100 |
Total assets | 39,037 | 38,387 |
Current liabilities: | ||
Accounts payable | 511 | 1,111 |
Accrued expenses | 1,298 | 1,590 |
Deferred revenue | 10,360 | 11,411 |
Income taxes payable | 307 | 2 |
Total current liabilities | 12,476 | 14,114 |
Deferred revenue, non-current portion | 3,197 | 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, 21,253,107 and 20,989,267 shares issued at June 30, 2015, and December 31, 2014, respectively | 21 | 21 |
Additional paid-in capital | 19,027 | 18,370 |
Treasury stock, 403,581 shares, at cost, at June 30, 2015 and December 31, 2014 | (1,452) | (1,452) |
Retained earnings | 5,717 | 3,889 |
Total stockholders’ equity | 23,313 | 20,828 |
Total liabilities and stockholders’ equity | $ 39,037 | $ 38,387 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Accounts receivable, allowance for doubtful accounts (in Dollars) | $ 500 | $ 511 |
Preferred stock par value (in Dollars per share) | $ 0.001 | $ 0.001 |
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) | $ 0.001 | $ 0.001 |
Common stock, authorized | 40,000,000 | 40,000,000 |
Common stock, issued | 21,253,107 | 20,989,267 |
Treasury stock, shares | 403,581 | 403,581 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Operating Revenues: | ||||
Software licenses | $ 3,280 | $ 2,583 | $ 5,738 | $ 4,496 |
Maintenance and support | 4,093 | 3,813 | 8,127 | 7,393 |
Professional services | 490 | 290 | 878 | 524 |
Total Revenues | 7,863 | 6,686 | 14,743 | 12,413 |
Operating Expenses: | ||||
Cost of revenues | 360 | 197 | 608 | 401 |
Selling, general and administrative | 4,556 | 4,850 | 9,117 | 8,897 |
Research and development | 657 | 689 | 1,187 | 1,215 |
Depreciation and amortization | 394 | 177 | 682 | 318 |
Total operating expenses | 5,967 | 5,913 | 11,594 | 10,831 |
Income from operations | 1,896 | 773 | 3,149 | 1,582 |
Other income (expense), net | 23 | (27) | 34 | (48) |
Income before income taxes | 1,919 | 746 | 3,183 | 1,534 |
Income tax expense | 594 | 258 | 1,043 | 511 |
Net income | 1,325 | 488 | 2,140 | 1,023 |
Comprehensive income | $ 1,325 | $ 488 | $ 2,140 | $ 1,023 |
Net income per common share - | ||||
Basic (in Dollars per share) | $ 0.06 | $ 0.02 | $ 0.10 | $ 0.05 |
Diluted (in Dollars per share) | $ 0.06 | $ 0.02 | $ 0.10 | $ 0.05 |
Weighted average shares outstanding: | ||||
Basic (in Shares) | 20,804 | 20,071 | 20,726 | 19,789 |
Diluted (in Shares) | 21,324 | 20,622 | 21,201 | 20,487 |
Cash dividends declared per share (in Dollars per share) | $ 0.015 | $ 0 | $ 0.015 | $ 0 |
Condensed Consolidated Stateme5
Condensed Consolidated Statement of Stockholders' Equity (Unaudited) - 6 months ended Jun. 30, 2015 - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Total |
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 | 307 | 307 | |||
Shares issued upon exercise of stock options (in Shares) | 183,840 | ||||
Shares issued upon award of restricted stock (in Shares) | 80,000 | ||||
Stock-based compensation expense: | |||||
Stock options | 202 | 202 | |||
Restricted stock | 113 | 113 | |||
Net increase in excess tax benefit from stock-based compensation | 35 | 35 | |||
Common stock cash dividends of $0.015 per share | (312) | (312) | |||
Net income | 2,140 | 2,140 | |||
Balances at Jun. 30, 2015 | $ 21 | $ 19,027 | $ (1,452) | $ 5,717 | $ 23,313 |
Balances (in Shares) at Jun. 30, 2015 | 21,253,107 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Operating Activities: | ||
Net income | $ 2,140 | $ 1,023 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Bad debt expense | 127 | 240 |
Depreciation and amortization | 682 | 318 |
Stock-based compensation | 315 | 256 |
Deferred taxes | (60) | 697 |
Excess tax benefit from share-based compensation | (35) | 294 |
Subtotal before changes in operating assets and liabilities | 3,169 | 2,828 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 1,130 | (2,099) |
Prepaid expenses | 190 | (66) |
Other assets | 5 | 51 |
Deferred revenue | (1,247) | 1,338 |
Accounts payable | (600) | 342 |
Accrued expenses | (292) | 793 |
Other long-term liabilities | (1) | (2) |
Income tax receivable and payable | 340 | (551) |
Net cash provided by operating activities | 2,694 | 2,634 |
Investing Activities: | ||
Software development costs capitalized | (1,107) | (1,284) |
Purchase of property and equipment | (90) | (124) |
Interest reinvested in long term investments | (32) | (32) |
Net cash (used in) investing activities | (1,229) | (1,440) |
Financing Activities: | ||
Proceeds from exercise of stock options | 307 | 2,026 |
Excess tax benefit from share-based compensation | 35 | (294) |
Notes payable principal payments | 0 | (688) |
Dividends paid | (312) | 0 |
Net cash provided by financing activities | 30 | 1,044 |
Net increase in cash | 1,495 | 2,238 |
Cash at beginning of period | 11,358 | 9,455 |
Cash at end of period | 12,853 | 11,693 |
Cash paid during the period for: | ||
Interest | 0 | 93 |
Income taxes | $ 696 | $ 379 |
1. Nature of Business
1. Nature of Business | 6 Months Ended |
Jun. 30, 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 Enhanced File Transfer, or EFT. We have other products that complement our secure information exchange offerings portfolio. Throughout these notes unless otherwise noted, our references to the 2015 quarter and the 2014 quarter refer to the three months ended June 30, 2015 and 2014, respectively. Our references to the 2015 six months and the 2014 six months refer to the six months ended June 30, 2015 and 2014, respectively. |
2.Basis of Presentation
2.Basis of Presentation | 6 Months Ended |
Jun. 30, 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 We follow accounting standards set by the Financial Accounting Standards Board. This board sets 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 | 6 Months Ended |
Jun. 30, 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 six months compared to the 2014 six months 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 some 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 and six months have been reclassified to software licenses revenue to conform to the presentation for the 2015 quarter and six months. 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 was 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 its 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. · We estimate a dividend yield based on our historical and expected future dividend payments. 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 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) |
4. Capitalized Software Develop
4. Capitalized Software Development Costs | 6 Months Ended |
Jun. 30, 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): June 30 December 31 2015 2014 Gross capitalized cost $ 5,184 $ 4,077 Accumulated amortization (1,324 ) (779 ) Net balance $ 3,860 $ 3,298 Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Amount capitalized $ 416 $ 532 $ 1,107 $ 1,284 Amortization expense (327 ) (105 ) (545 ) (173 ) Released Unreleased Products Products Gross capitalized amount at June 30, 2015 $ 4,400 $ 784 Future amortization expense: Six months ending December 31, 2015 706 Year ending December 31, 2016 1,293 2017 889 2018 188 Total $ 3,076 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 St
5. Stock Options, Restricted Stock and Share-Based Compensation | 6 Months Ended |
Jun. 30, 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 June 30, Six Months Ended June 30, 2015 2014 2015 2014 Share-based compensation expense $ 167 $ 130 $ 315 $ 256 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 3,000,000 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 vest 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 or 2014 periods. · As of June 30, 2015, stock-based incentives for up to 705,590 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 390,000 $ 3.16 Forfeited (115,950 ) $ 2.44 Exercised (183,840 ) $ 1.67 Outstanding at June 30, 2015 2,112,385 $ 2.34 6.40 $ 2,116 Exercisable at June 30, 2015 1,289,489 $ 2.17 4.80 $ 1,555 Additional information about our stock options is as follows: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Weighted average fair value of options granted $ 1.41 $ 1.32 $ 1.38 $ 1.30 Intrinsic value of options exercised $ 25,842 $ 653,294 $ 280,958 $ 919,307 Cash received from stock options exercised $ 28,408 $ 1,067,608 $ 317,974 $ 1,986,812 Number of options that vested 50,880 57,240 181,534 149,320 Fair value of options that vested $ 49,182 $ 54,408 $ 199,296 $ 147,987 Unrecognized compensation expense related to non-vested options at end of period $ 814,783 $ 704,134 $ 814,783 $ 704,134 Weighted average years over which non-vested option expense will be recognized $ 2.17 $ 2.12 $ 2.17 $ 2.12 We used the following assumptions to determine compensation expense for our stock options using the Black-Scholes option-pricing model: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Expected volatility 57 % 59 % 57 % 56 % Expected annual dividend yield 2.40 % - 2.40 % - Risk free rate of return 1.58 % 1.88 % 1.58 % 1.94 % Expected option term (years) 6.00 6.00 6.00 6.00 Based upon our dividend payment activity in recent years, beginning with the first quarter of 2015, we added an expected annual dividend yield to these assumptions. Restricted Stock Awards In May 2015, we adopted the 2015 Non-Employee Directors Long Term Incentive Plan (“2015 Directors Plan”). This plan provides for the issuance of either stock options or restricted stock awards for up to 500,000 shares of our common stock. Provisions and characteristics of this plan include 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. 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 80,000 $ 3.34 Shares vested and restrictions removed (80,000 ) $ 2.32 $ 267,200 Restricted Shares Outstanding at June 30, 2015 80,000 $ 3.34 Shares remaining available under the plan for future issuance 420,000 Unrecognized compensation expense for non-vested shares as of June 30, 2015 Expense to be recognized in future periods $ 232,253 Weighted average number of months over which expense is expected to be recognized 10.00 We have not issued any stock options under the 2015 Directors Plan. The 2015 Directors Plan replaced the 2006 Non-Employee Directors Long Term Incentive Plan. We will not issue any additional stock or stock options under the 2006 plan. |
6. Income Taxes
6. Income Taxes | 6 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | 6. Income Taxes Our income tax expense 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 June 30, Six Months Ended June 30, 2015 2014 2015 2014 Income tax expense at federal statutory rate $ 652 $ 254 $ 1,082 $ 522 Increase (decrease) in taxes resulting from: Domestic production activities deduction (17 ) 7 (47 ) (10 ) State taxes, net of federal benefit 22 12 38 9 Reduction in reserve for uncertain tax positions (51 ) - (51 ) - Other (12 ) (15 ) 21 (10 ) Income tax expense per the statement of operations $ 594 $ 258 $ 1,043 $ 511 We claimed the research and experimentation tax credit, or R&D tax credit, on certain of our tax returns and have included the effect of those credits in our provisions for income taxes. Certain of those returns, and in particular the R&D tax credit claimed on those returns, were under routine examination by the Internal Revenue Service, or IRS. The IRS has completed its examination of such returns through 2010 with their findings resulting in them allowing us to take a larger R&D tax credit than we had previously estimated the IRS might allow. As a result, we reduced our valuation allowance related to the uncertainty of this item by $51,000 during the 2015 quarter. Our tax returns for 2011 and later remain subject to examination by the IRS. We believe it more-likely-than-not that examination of those tax returns could result in $42,000 of R&D tax credits we claimed for those years not being allowed by the IRS. Accordingly, we have retained a valuation allowance of $42,000 due to the uncertainty of this item. As of June 30, 2015, we had federal income tax net operating loss carry forwards of $531,000 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. Accordingly, we have not recorded a benefit for that credit during the 2015 quarter or 2015 six months. 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 and 2014 six months. |
7. Earnings per Common Share
7. Earnings per Common Share | 6 Months Ended |
Jun. 30, 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 Six Months Ended June 30, June 30, 2015 2014 2015 2014 Net income $ 1,325 $ 488 $ 2,140 $ 1,023 Weighted average shares outstanding - basic 20,804 20,071 20,726 19,789 Stock options 520 551 475 698 Weighted average shares outstanding - diluted 21,324 20,622 21,201 20,487 Net income per common share - basic $ 0.06 $ 0.02 $ 0.10 $ 0.05 Net income per common share - diluted $ 0.06 $ 0.02 $ 0.10 $ 0.05 |
8.Dividends
8.Dividends | 6 Months Ended |
Jun. 30, 2015 | |
Dividends [Abstract] | |
Dividends [Text Block] | 8. Dividends During the 2015 quarter, our Board of Directors declared a quarterly dividend of $0.015 per share of common stock payable on June 3, 2015, to shareholders of record at the close of business on May 19, 2015. |
9.Commitments and Contingencies
9.Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | 9. 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) | 6 Months Ended |
Jun. 30, 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 some 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 and six months have been reclassified to software licenses revenue to conform to the presentation for the 2015 quarter and six months |
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 was 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 its 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. · We estimate a dividend yield based on our historical and expected future dividend payments. 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 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) |
4. Capitalized Software Devel17
4. Capitalized Software Development Costs (Tables) | 6 Months Ended |
Jun. 30, 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): June 30 December 31 2015 2014 Gross capitalized cost $ 5,184 $ 4,077 Accumulated amortization (1,324 ) (779 ) Net balance $ 3,860 $ 3,298 |
Finite-lived Intangible Assets Amortization Expense [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Amount capitalized $ 416 $ 532 $ 1,107 $ 1,284 Amortization expense (327 ) (105 ) (545 ) (173 ) |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Table Text Block] | Released Unreleased Products Products Gross capitalized amount at June 30, 2015 $ 4,400 $ 784 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Future amortization expense: Six months ending December 31, 2015 706 Year ending December 31, 2016 1,293 2017 889 2018 188 Total $ 3,076 |
5. Stock Options, Restricted 18
5. Stock Options, Restricted Stock and Share-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, Six Months Ended June 30, 2015 2014 2015 2014 Share-based compensation expense $ 167 $ 130 $ 315 $ 256 |
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 390,000 $ 3.16 Forfeited (115,950 ) $ 2.44 Exercised (183,840 ) $ 1.67 Outstanding at June 30, 2015 2,112,385 $ 2.34 6.40 $ 2,116 Exercisable at June 30, 2015 1,289,489 $ 2.17 4.80 $ 1,555 |
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 June 30, Six Months Ended June 30, 2015 2014 2015 2014 Weighted average fair value of options granted $ 1.41 $ 1.32 $ 1.38 $ 1.30 Intrinsic value of options exercised $ 25,842 $ 653,294 $ 280,958 $ 919,307 Cash received from stock options exercised $ 28,408 $ 1,067,608 $ 317,974 $ 1,986,812 Number of options that vested 50,880 57,240 181,534 149,320 Fair value of options that vested $ 49,182 $ 54,408 $ 199,296 $ 147,987 Unrecognized compensation expense related to non-vested options at end of period $ 814,783 $ 704,134 $ 814,783 $ 704,134 Weighted average years over which non-vested option expense will be recognized $ 2.17 $ 2.12 $ 2.17 $ 2.12 |
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 June 30, Six Months Ended June 30, 2015 2014 2015 2014 Expected volatility 57 % 59 % 57 % 56 % Expected annual dividend yield 2.40 % - 2.40 % - Risk free rate of return 1.58 % 1.88 % 1.58 % 1.94 % Expected option term (years) 6.00 6.00 6.00 6.00 |
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 80,000 $ 3.34 Shares vested and restrictions removed (80,000 ) $ 2.32 $ 267,200 Restricted Shares Outstanding at June 30, 2015 80,000 $ 3.34 Shares remaining available under the plan for future issuance 420,000 Unrecognized compensation expense for non-vested shares as of June 30, 2015 Expense to be recognized in future periods $ 232,253 Weighted average number of months over which expense is expected to be recognized 10.00 |
6. Income Taxes (Tables)
6. Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Our income tax expense 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 June 30, Six Months Ended June 30, 2015 2014 2015 2014 Income tax expense at federal statutory rate $ 652 $ 254 $ 1,082 $ 522 Increase (decrease) in taxes resulting from: Domestic production activities deduction (17 ) 7 (47 ) (10 ) State taxes, net of federal benefit 22 12 38 9 Reduction in reserve for uncertain tax positions (51 ) - (51 ) - Other (12 ) (15 ) 21 (10 ) Income tax expense per the statement of operations $ 594 $ 258 $ 1,043 $ 511 |
7. Earnings per Common Share (T
7. Earnings per Common Share (Tables) | 6 Months Ended |
Jun. 30, 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 Six Months Ended June 30, June 30, 2015 2014 2015 2014 Net income $ 1,325 $ 488 $ 2,140 $ 1,023 Weighted average shares outstanding - basic 20,804 20,071 20,726 19,789 Stock options 520 551 475 698 Weighted average shares outstanding - diluted 21,324 20,622 21,201 20,487 Net income per common share - basic $ 0.06 $ 0.02 $ 0.10 $ 0.05 Net income per common share - diluted $ 0.06 $ 0.02 $ 0.10 $ 0.05 |
3. Significant Accounting Pol21
3. Significant Accounting Policies (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 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 Devel22
4. Capitalized Software Development Costs (Details) - Schedule of Finite-Lived Intangible Assets - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Schedule of Finite-Lived Intangible Assets [Abstract] | ||
Gross capitalized cost | $ 5,184 | $ 4,077 |
Accumulated amortization | (1,324) | (779) |
Net balance | $ 3,860 | $ 3,298 |
4. Capitalized Software Devel23
4. Capitalized Software Development Costs (Details) - Finite-lived Intangible Assets Amortization Expense - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Finite-lived Intangible Assets Amortization Expense [Abstract] | ||||
Amount capitalized | $ 416 | $ 532 | $ 1,107 | $ 1,284 |
Amortization expense | $ (327) | $ (105) | $ (545) | $ (173) |
4. Capitalized Software Devel24
4. Capitalized Software Development Costs (Details) - Schedule of Capitalized Costs - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
4. Capitalized Software Development Costs (Details) - Schedule of Capitalized Costs [Line Items] | ||
Gross capitalized amount at June 30, 2015 | $ 5,184 | $ 4,077 |
Released Products [Member] | ||
4. Capitalized Software Development Costs (Details) - Schedule of Capitalized Costs [Line Items] | ||
Gross capitalized amount at June 30, 2015 | 4,400 | |
Unreleased Products [Member] | ||
4. Capitalized Software Development Costs (Details) - Schedule of Capitalized Costs [Line Items] | ||
Gross capitalized amount at June 30, 2015 | $ 784 |
4. Capitalized Software Devel25
4. Capitalized Software Development Costs (Details) - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense - Computer Software, Intangible Asset [Member] $ in Thousands | Jun. 30, 2015USD ($) |
Future amortization expense: | |
Six months ending December 31, 2015 | $ 706 |
Year ending December 31, | |
2,016 | 1,293 |
2,017 | 889 |
2,018 | 188 |
Total | $ 3,076 |
5. Stock Options, Restricted 26
5. Stock Options, Restricted Stock and Share-Based Compensation (Details) - Jun. 30, 2015 - shares | Total |
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 |
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 | 705,590 |
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 | 420,000 |
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 |
5. Stock Options, Restricted 27
5. Stock Options, Restricted Stock and Share-Based Compensation (Details) - Schedule Of Share Based Compensation Expense - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Schedule Of Share Based Compensation Expense [Abstract] | ||||
Share-based compensation expense | $ 167 | $ 130 | $ 315 | $ 256 |
5. Stock Options, Restricted 28
5. Stock Options, Restricted Stock and Share-Based Compensation (Details) - Schedule of Share-based Compensation, Stock Options, Activity - Employee Stock Option [Member] - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
5. Stock Options, Restricted Stock and Share-Based Compensation (Details) - Schedule of Share-based Compensation, Stock Options, Activity [Line Items] | ||
Number of Shares, Outstanding | 2,112,385 | 2,022,175 |
Average Exercise Price, Outstanding | $ 2.34 | $ 2.12 |
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2 | 6 years 146 days | 6 years 25 days |
Intrinsic Value, Outstanding | $ 2,116 | $ 710 |
Exercisable at June 30, 2015 | 1,289,489 | |
Exercisable at June 30, 2015 | $ 2.17 | |
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1 | 4 years 292 days | |
Exercisable at June 30, 2015 | $ 1,555 | |
Granted | 390,000 | |
Granted | $ 3.16 | |
Forfeited | (115,950) | |
Forfeited | $ 2.44 | |
Exercised | (183,840) | |
Exercised | $ 1.67 |
5. Stock Options, Restricted 29
5. Stock Options, Restricted Stock and Share-Based Compensation (Details) - Schedule of Stock Options - Employee Stock Option [Member] - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
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) | $ 1.41 | $ 1.32 | $ 1.38 | $ 1.30 |
Intrinsic value of options exercised | $ 25,842 | $ 653,294 | $ 280,958 | $ 919,307 |
Cash received from stock options exercised | $ 28,408 | $ 1,067,608 | $ 317,974 | $ 1,986,812 |
Number of options that vested (in Shares) | 50,880 | 57,240 | 181,534 | 149,320 |
Fair value of options that vested | $ 49,182 | $ 54,408 | $ 199,296 | $ 147,987 |
Unrecognized compensation expense related to non-vested options at end of period | $ 814,783 | $ 704,134 | $ 814,783 | $ 704,134 |
Weighted average years over which non-vested option expense will be recognized | 2 years 62 days | 2 years 43 days | 2 years 62 days | 2 years 43 days |
5. Stock Options, Restricted 30
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 | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
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% | 59.00% | 57.00% | 56.00% |
Expected annual dividend yield | 2.40% | 0.00% | 2.40% | 0.00% |
Risk free rate of return | 1.58% | 1.88% | 1.58% | 1.94% |
Expected option term (years) | 6 years | 6 years | 6 years | 6 years |
5. Stock Options, Restricted 31
5. Stock Options, Restricted Stock and Share-Based Compensation (Details) - Nonvested Restricted Stock Shares Activity - Jun. 30, 2015 - Restricted Stock [Member] - USD ($) | Total |
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 |
Shares granted with restrictions | 80,000 |
Shares granted with restrictions (in Dollars per share) | $ 3.34 |
Shares vested and restrictions removed | (80,000) |
Shares vested and restrictions removed (in Dollars per share) | $ 2.32 |
Shares vested and restrictions removed (in Dollars) | $ 267,200 |
Restricted Shares Outstanding at June 30, 2015 | 80,000 |
Restricted Shares Outstanding at June 30, 2015 (in Dollars per share) | $ 3.34 |
Shares remaining available under the plan for future issuance | 420,000 |
Unrecognized compensation expense for non-vested shares as of June 30, 2015 | |
Expense to be recognized in future periods (in Dollars) | $ 232,253 |
Weighted average number of months over which expense is expected to be recognized | 10 years |
6. Income Taxes (Details)
6. Income Taxes (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
6. Income Taxes (Details) [Line Items] | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 34.00% | 34.00% | ||
Effective Income Tax Rate Reconciliation, Other Reconciling Items, Amount | $ (51,000) | $ 0 | $ (51,000) | $ 0 |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | 42,000 | 42,000 | ||
Increase in Unrecognized Tax Benefits is Reasonably Possible | 42,000 | 42,000 | ||
Operating Loss Carryforwards | $ 531,000 | $ 531,000 | ||
Minimum [Member] | Domestic Tax Authority [Member] | ||||
6. Income Taxes (Details) [Line Items] | ||||
Federal Net Operating Loss Carryforwards Expiration Year | 2,030 | |||
Maximum [Member] | Domestic Tax Authority [Member] | ||||
6. Income Taxes (Details) [Line Items] | ||||
Federal Net Operating Loss Carryforwards Expiration Year | 2,031 |
6. Income Taxes (Details) - Sch
6. Income Taxes (Details) - Schedule of Effective Income Tax Rate Reconciliation - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Schedule of Effective Income Tax Rate Reconciliation [Abstract] | ||||
Income tax expense at federal statutory rate | $ 652 | $ 254 | $ 1,082 | $ 522 |
Increase (decrease) in taxes resulting from: | ||||
Domestic production activities deduction | (17) | 7 | (47) | (10) |
State taxes, net of federal benefit | 22 | 12 | 38 | 9 |
Reduction in reserve for uncertain tax positions | (51) | 0 | (51) | 0 |
Other | (12) | (15) | 21 | (10) |
Income tax expense per the statement of operations | $ 594 | $ 258 | $ 1,043 | $ 511 |
7. Earnings per Common Share (D
7. Earnings per Common Share (Details) - Schedule of Earnings Per Share, Basic and Diluted - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Schedule of Earnings Per Share, Basic and Diluted [Abstract] | ||||
Net income (in Dollars) | $ 1,325 | $ 488 | $ 2,140 | $ 1,023 |
Weighted average shares outstanding - basic | 20,804 | 20,071 | 20,726 | 19,789 |
Stock options | 520 | 551 | 475 | 698 |
Weighted average shares outstanding - diluted | 21,324 | 20,622 | 21,201 | 20,487 |
Net income per common share - basic (in Dollars per share) | $ 0.06 | $ 0.02 | $ 0.10 | $ 0.05 |
Net income per common share - diluted (in Dollars per share) | $ 0.06 | $ 0.02 | $ 0.10 | $ 0.05 |
8.Dividends (Details)
8.Dividends (Details) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Dividends [Abstract] | ||||
Common Stock, Dividends, Per Share, Declared | $ 0.015 | $ 0 | $ 0.015 | $ 0 |
Dividends Payable, Date to be Paid | Jun. 3, 2015 | |||
Dividends Payable, Date of Record | May 19, 2015 |
9.Commitments and Contingenci36
9.Commitments and Contingencies (Details) | Jun. 30, 2015USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Other Commitment | $ 951,000 |