Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 18, 2016 | Jun. 30, 2015 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | GLOBALSCAPE INC | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Common Stock, Shares Outstanding | 21,014,206 | ||
Entity Public Float | $ 43,818,079 | ||
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 | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 15,885 | $ 11,358 |
Short term investments | 3,254 | 0 |
Accounts receivable (net of allowance for doubtful accounts of $325 and $511 in 2015 and 2014, respectively) | 6,081 | 5,938 |
Federal income tax receivable | 290 | 0 |
Prepaid expenses | 511 | 488 |
Total current assets | 26,021 | 17,784 |
Property and equipment, net | 498 | 616 |
Long term investments | 0 | 3,185 |
Capitalized software development costs | 3,982 | 3,298 |
Goodwill | 12,712 | 12,712 |
Deferred tax asset | 940 | 692 |
Other assets | 60 | 100 |
Total assets | 44,213 | 38,387 |
Current liabilities: | ||
Accounts payable | 839 | 1,111 |
Accrued expenses | 1,893 | 1,590 |
Deferred revenue | 12,000 | 11,411 |
Income taxes payable | 127 | 2 |
Total current liabilities | 14,859 | 14,114 |
Deferred revenue, non-current portion | 3,612 | 3,393 |
Other long term liabilities | $ 44 | $ 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, 21,383,467 and 20,989,267 shares issued at December 31, 2015 and December 31, 2014, respectively | 21 | 21 |
Additional paid-in capital | 19,583 | 18,370 |
Treasury stock, 403,581 shares, at cost, at December 31, 2015 and December 31, 2014 | (1,452) | (1,452) |
Retained earnings | 7,546 | 3,889 |
Total stockholders’ equity | 25,698 | 20,828 |
Total liabilities and stockholders’ equity | $ 44,213 | $ 38,387 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts receivable, allowance for doubtful accounts (in Dollars) | $ 325 | $ 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 | 21,383,467 | 20,989,267 |
Treasury stock, shares | 403,581 | 403,581 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Operating revenues: | ||
Software licenses | $ 12,023 | $ 10,292 |
Maintenance and support | 16,595 | 15,033 |
Professional services | 2,223 | 1,445 |
Total revenues | 30,841 | 26,770 |
Costs of revenues | ||
Software licenses | 2,428 | 1,508 |
Maintenance and support | 1,466 | 1,491 |
Professional services | 1,775 | 785 |
Total costs of revenues | 5,669 | 3,784 |
Gross Profit | 25,172 | 22,986 |
Operating expenses | ||
Sales and marketing | 10,025 | 10,012 |
General and administrative | 6,168 | 6,176 |
Research and development | 2,562 | 2,183 |
Total operating expenses | 18,755 | 18,371 |
Income from operations | 6,417 | 4,615 |
Other income (expense): | ||
Interest expense | (4) | (105) |
Interest income | 82 | 63 |
Total other income (expense) | 78 | (42) |
Income before income taxes | 6,495 | 4,573 |
Provision for income taxes | 1,897 | 1,547 |
Net income | 4,598 | 3,026 |
Comprehensive income | $ 4,598 | $ 3,026 |
Net income per common share - basic (in Dollars per share) | $ 0.22 | $ 0.15 |
Net income per common share - diluted (in Dollars per share) | $ 0.22 | $ 0.15 |
Weighted average shares outstanding: | ||
Basic (in Shares) | 20,824 | 20,163 |
Diluted (in Shares) | 21,366 | 20,693 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Total |
Balances at Dec. 31, 2013 | $ 20 | $ 15,834 | $ (1,452) | $ 1,891 | $ 16,293 |
Balances (in Shares) at Dec. 31, 2013 | 19,592,117 | ||||
Shares issued upon exercise of stock options | $ 1 | 2,242 | $ 2,243 | ||
Shares issued upon exercise of stock options (in Shares) | 1,317,150 | 1,317,150 | |||
Tax (deficiency) from stock-based compensation | (227) | $ (227) | |||
Stock-based compensation expense | |||||
Stock-based compensation expense | 354 | 354 | |||
Issuance of vested restricted stock | 167 | 167 | |||
Issuance of vested restricted stock (in Shares) | 80,000 | ||||
Common stock cash dividends | (1,028) | (1,028) | |||
Net income (loss) | 3,026 | 3,026 | |||
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 | 508 | $ 508 | |||
Shares issued upon exercise of stock options (in Shares) | 314,200 | 314,200 | |||
Tax (deficiency) from stock-based compensation | 58 | $ 58 | |||
Stock-based compensation expense | |||||
Stock-based compensation expense | 400 | 400 | |||
Issuance of vested restricted stock | 247 | 247 | |||
Issuance of vested restricted stock (in Shares) | 80,000 | ||||
Common stock cash dividends | (941) | (941) | |||
Net income (loss) | 4,598 | 4,598 | |||
Balances at Dec. 31, 2015 | $ 21 | $ 19,583 | $ (1,452) | $ 7,546 | $ 25,698 |
Balances (in Shares) at Dec. 31, 2015 | 21,383,467 |
Consolidated Statement of Stoc6
Consolidated Statement of Stockholders' Equity (Parentheticals) | 12 Months Ended |
Dec. 31, 2015$ / shares | |
Common stock cash dividends per share | $ 0.045 |
Retained Earnings [Member] | |
Common stock cash dividends per share | $ 0.045 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Activities: | ||
Net income | $ 4,598 | $ 3,026 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Bad debt expense | 62 | 445 |
Depreciation and amortization | 1,553 | 883 |
Stock-based compensation | 647 | 521 |
Deferred taxes | (248) | 968 |
Excess tax deficiency from exercise of share based compensation | (58) | 227 |
Other | 0 | 74 |
Subtotal before changes in operating assets and liabilities | 6,554 | 6,144 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (205) | (2,619) |
Prepaid expenses | (23) | (139) |
Federal income taxes | (107) | (112) |
Other assets | 40 | 44 |
Accounts payable | (272) | 456 |
Accrued expenses | 303 | 693 |
Deferred revenues | 808 | 4,004 |
Other long-term liabilities | (8) | (8) |
Net cash provided by (used in) operating activities | 7,090 | 8,463 |
Investing Activities: | ||
Software development costs | (1,967) | (2,847) |
Purchase of property and equipment | (152) | (252) |
Interest on long term investments | (69) | (63) |
Net cash provided by (used in) investing activities | (2,188) | (3,162) |
Financing Activities: | ||
Proceeds from exercise of stock options | 508 | 2,243 |
Tax deficiency (benefit) from stock-based compensation | 58 | (227) |
Notes payable principal payments | 0 | (4,386) |
Dividends paid | (941) | (1,028) |
Net cash provided by (used in) financing activities | (375) | (3,398) |
Net increase (decrease) in cash | 4,527 | 1,903 |
Cash at beginning of period | 11,358 | 9,455 |
Cash at end of period | 15,885 | 11,358 |
Cash paid during the period for: | ||
Interest | 0 | 117 |
Income taxes | $ 2,146 | $ 565 |
1. Nature of Business and Corpo
1. Nature of Business and Corporate Structure | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block [Abstract] | |
Nature of Operations [Text Block] | 1. Nature of Business and Corporate Structure 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 2015 and 2014 refer to the years ended December 31, 2015 and 2014, respectively. |
2. Significant Accounting Polic
2. Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | 2. Significant Accounting Policies Basis of Presentation 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. 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 of the sale is fixed or determinable. · Collection of the sale amount 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 the 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 of Expenses Cost of revenue Cost of revenue consists of expenses associated with the production, delivery and support of the products and services we sell. Cost of license revenue consists primarily of amortization of the capitalized software development costs we incur when producing our software products, royalties we pay to use software developed by others for certain features of our products, and fees we pay to third parties who provide services supporting our SaaS and cloud-based subscription solutions. Cost of M&S revenue and cost of professional services revenue consist primarily of salaries and related costs of our employees and third parties we use to deliver these services. In preparing our financial statements for the year ended December 31, 2015, we refined our determination of the expenses we classify as cost of revenues in response to the evolution of our business and the resulting changes in the scope and nature of certain expenses we incur. As a result, we reclassified to cost of revenues certain expenses we had previously classified as part of selling, general and administrative expenses and depreciation and amortization. Depreciation and Amortization After making the cost of revenue reclassifications described above, the amount remaining in depreciation and amortization expense was related to sales and marketing and general and administrative activities. Accordingly, we reclassified that remaining depreciation and amortization expense to sales and marketing and general and administrative expense and eliminated the depreciation and amortization line in our statement of operations. Sales and marketing and general and administrative expenses We have revised the manner in which we present these expenses by separating them into separate lines for each of sales and marketing expenses and general and administrative expenses. Effect of reclassification of expenses These expense reclassifications occurred only within and between cost of revenues and operating expenses. These reclassifications had no effect on revenues, income from operations, income before income taxes, net income or earnings per share as previously reported. The following table illustrates the effects of these changes on previously reported amounts for the year ended December 31, 2014 ($ in thousands): Year Ended December 31, 2014 Reclassification of Previously Reported Amounts As Cost Capitalized Selling, As Previously of Software Cost Personnel General & Now Reported Revenues Amortization Costs Depreciation Administrative Reported Operating Revenues: Software licenses $ 10,292 $ 10,292 Maintenance and support 15,033 15,033 Professional services 1,445 1,445 Total revenues 26,770 26,770 Cost of Revenues: Software licenses 931 577 1,508 Maintenance and support 1,491 1,491 Professional services 87 698 785 Total cost of revenues - 3,784 Gross profit 22,986 Operating Expenses Sales and marketing - 10,012 10,012 General and administrative - 306 5,870 6,176 Cost of Revenues 1,018 (1,018 ) - Selling, general and administrative 18,071 (2,189 ) (15,882 ) - Research and development 2,183 2,183 Depreciation and amortization 883 (577 ) (306 ) - Total operating expenses 22,155 18,371 Income from operations 4,615 4,615 Other income (expense), net (42 ) (42 ) Income before income taxes 4,573 4,573 Income tax expense 1,547 1,547 Net income $ 3,026 $ 3,026 Comprehensive income $ 3,026 $ 3,026 Net income per common share - Basic $ 0.15 $ 0.15 Diluted $ 0.15 $ 0.15 Cash and cash equivalents Cash and cash equivalents includes all cash and highly liquid investments with original maturities of three months or less. Short Term Investments Short-term investments consist of certificates of deposit held with financial institutions with contractual maturity dates less than one year from the balance sheet date. The Company has the intent and ability to hold these investments until their maturity dates and therefore accounts for them as held-to-maturity. These certificates of deposit are stated at amortized cost, which approximates fair value of these investments. Property and Equipment Property and equipment is comprised of furniture and fixtures, software, computer equipment and leasehold improvements which are recorded at cost and depreciated using the straight-line method over their estimated useful lives. Furniture, fixtures and equipment have a useful life of five to seven years, computer equipment and software have a useful life of three years and leasehold improvements have a useful life that is the shorter of the term of the lease under which the improvements were made or the estimated useful life of the asset. Expenditures for maintenance and repairs are charged to operations as incurred. Long-Term Investments Long-term investments consist of certificates of deposit held with financial institutions with contractual maturity dates greater than one year from the balance sheet date. The Company has the intent and ability to hold these investments until their maturity dates and therefore accounts for them as held-to-maturity. These certificates of deposit are stated at amortized cost, which approximates fair value of these investments. 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, 2015, 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 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 in place 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. We periodically assess the carrying value of capitalized software development costs relative to our estimates of realizability through sales of products in the marketplace. Research and Development We expense research and development costs as incurred. Advertising Expense We expense advertising costs as incurred as a component of our sales and marketing expenses. Advertising expense was $1.6 million and $1.4 million in 2015 and 2014, respectively. 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. Earnings Per Share We compute basic earnings per share using the weighted-average number of common shares outstanding during the periods. We compute diluted earnings per share using the weighted-average number of common shares outstanding plus the number of common shares that would be issued assuming conversion of all potentially dilutive common shares outstanding. Awards of non-vested options are considered potentially dilutive common shares for the purpose of computing earnings per common share. We apply the treasury stock method to non-vested options under which the assumed proceeds include the amount the employee must pay to exercise the option plus the amount of unrecognized cost attributable to future periods less any expected tax benefits. Recent accounting pronouncements In November 2015, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update (ASU) No. 2015-17, Income Tax: Balance Sheet Classification of Deferred Taxes In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update No. 2014-09 entitled Revenue from Contracts with Customers (Topic 606) 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. |
3. Accounts Receivable
3. Accounts Receivable | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 3. Accounts Receivable Accounts receivable are presented net of an allowance for doubtful accounts. The activity in the Company’s allowance for doubtful accounts has been as follows ($ in thousands): Year Ended December 31, 2015 2014 Balance, beginning of period $ 511 $ 154 Provision for doubtful accounts 55 445 Accounts written off (241 ) (88 ) Balance, end of period $ 325 $ 511 |
4. Property and Equipment
4. Property and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | 4. Property and Equipment Property and equipment, at cost, consist of the following ($ in thousands): December 31, 2015 2014 Furniture and fixtures $ 620 $ 620 Software 638 634 Equipment 1,218 1,075 Leasehold improvements 559 559 3,035 2,888 Less accumulated depreciation (2,537 ) (2,272 ) Property and equipment, net $ 498 $ 616 |
5. Capitalized Software Develop
5. Capitalized Software Development Costs | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block [Abstract] | |
Intangible Assets Disclosure [Text Block] | 5. Capitalized Software Development Costs Our capitalized software development costs profile is as follows: ($ in thousands): December 31, 2015 2014 Gross capitalized cost $ 5,714 $ 4,077 Accumulated amortization (1,732 ) (779 ) Net balance $ 3,982 $ 3,298 Year Ended December 31, 2015 2014 Amount capitalized $ 1,967 $ 2,847 Amortization expense $ (1,283 ) $ (577 ) Released Unreleased Products Products Gross capitalized amount at December 31, 2015 $ 4,651 $ 1,063 Future amortization expense for the year ending December 31, 2016 $ 1,486 2017 1,083 2018 350 Total $ 2,919 We include capitalized software development costs in intangible assets on our balance sheet. 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. |
6. Commitments and Contingencie
6. Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Loss Contingency [Abstract] | |
Contingencies Disclosure [Text Block] | 6. Commitments and Contingencies Minimum rental commitments under operating leases at December 31, 2015, are as follows ($ in thousands): Year Ending December 31, 2016 $ 360 2017 360 2018 360 2019 120 Total $ 1,200 Rent expense under operating leases was $347,000 in 2015 and $458,000 in 2014. We had a deferred rent liability of $44,000 at December 31, 2015, which we amortize to rent expense on a straight-line basis over the remaining life of the applicable lease. 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 $1.2 million. |
7. Notes Payable
7. Notes Payable | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | 7. Notes Payable During 2014, we repaid-in-full and retired our notes payable to a bank. This payment eliminated the financial covenants and other terms and conditions of the related loan agreements. It also eliminated the lien on our short-term investments such that we can convert them to cash and cash equivalents at our discretion at any time to meet the needs of our business. |
8. Stock Options, Restricted St
8. Stock Options, Restricted Stock and Share-Based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 8. Stock Options, Restricted Stock and Share-Based Compensation We have stock-based compensation plans under which we have granted, and may grant in the future, incentive stock options, non-qualified stock options, and restricted stock to employees and non-employee members of the Board of Directors. Our share-based compensation expense was as follows ($ in thousands): Year Ended December 31, 2015 2014 Share-based compensation expense $ 647 $ 521 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 in 2015 or 2014. · As of December 31, 2015, stock-based incentives for up to 925,590 shares remained available for issuance in the future under this plan. During a portion of 2010 and in earlier years, we issued stock options under the GlobalSCAPE, Inc. 2000 Stock Option Plan. We no longer issue stock options under this plan. Our stock option activity has been as follows: Weighted Weighted Average Average Remaining Aggregate Number of Exercise Contractual Intrinsic Shares Price Terms Value (Years) (000's) Outstanding at December 31, 2013 3,117,745 $ 1.92 4.46 $ 1,808 2014 Granted 394,500 $ 2.40 Forfeitures (172,920 ) $ 2.33 Exercised (1,317,150 ) $ 1.70 Outstanding at December 31, 2013 2,022,175 $ 2.12 6.07 $ 710 2015 Granted 538,000 $ 3.21 Forfeitures (154,650 ) $ 2.49 Exercised (314,200 ) $ 1.61 Outstanding at December 31, 2015 2,091,325 $ 2.45 6.09 $ 3,277 Exercisable at December 31, 2015 1,291,409 $ 2.22 4.40 $ 2,330 Additional information about our stock options is as follows: 2015 2014 Weighted average fair value of options granted during the year $ 1.40 $ 1.30 Intrinsic value of options exercised during the year $ 532,224 $ 1,160,000 Cash received from stock options exercised during the year $ 507,289 $ 2,243,000 Number of options that vested during the year 306,834 295,670 Fair value of options that vested during the year $ 334,788 $ 304,000 Unrecognized compensation expense related to non-vested options at end of year $ 780,059 $ 560,000 Weighted average years over which non-vested option expense will be recognized 2.03 1.93 As of December 31, 2015 Options Outstanding Options Exercisable Weighted Average Weighted Weighted Underlying Remaining Average Number of Average Range of Shares Contractual Exercise Underlying Exercise Exercise Prices Outstanding Life Price Shares Price $ 0.55 - $1.43 204,350 3.94 $ 1.14 185,569 $ 1.11 $ 1.47 - $2.26 652,125 5.98 $ 1.80 574,965 $ 1.82 $ 2.27 - $3.42 1,079,850 6.97 $ 2.86 400,875 $ 2.67 $ 3.50 - $4.21 155,000 3.30 $ 4.05 130,000 $ 4.10 Total options 2,091,325 1,291,409 We used the following assumptions to determine compensation expense for our stock options using the Black-Scholes option-pricing model: Year Ended December 31, 2015 2014 Expected volatility 57 % 56 % Expected annual dividend yield 2.4 % 0 Risk free rate of return 1.58 % 1.91 % Expected option term (years) 6.00 6.00 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. · As of December 31, 2015, stock based incentives for up to 420,000 shares remained available for issuance in the future under this 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, 2013 80,000 $ 1.65 2014 Shares granted with restrictions 80,000 $ 2.32 Shares vested and restrictions removed (80,000 ) $ 1.65 $ 189,600 Restricted Shares Outstanding at December 31, 2014 80,000 $ 2.32 2015 Shares granted with restrictions 80,000 $ 3.34 Shares vested and restrictions removed (80,000 ) $ 2.32 $ 267,200 Restricted Shares Outstanding at December 31, 2015 80,000 $ 3.34 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. |
9. Income Taxes
9. Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | 9. Income Taxes The components of our income tax expense (benefit) are as follows ($ in thousands): 2015 2014 Current Deferred Total Current Deferred Total Federal $ 1,993 $ (243 ) $ 1,750 $ 733 $ 739 $ 1,472 Foreign 50 - 50 - - - State 102 (5 ) 97 93 (18 ) 75 Total $ 2,145 $ (248 ) $ 1,897 $ 826 $ 721 $ 1,547 Current taxes per our federal income tax return are presented in these financial statements as follows: 2015 2014 Current federal income tax expense in the statement of operations $ 1,993 $ 733 Tax (deficiency) from stock-based compensation recorded in additional paid-in capital (58 ) 227 Current taxes per our federal income tax return $ 1,935 $ 960 Deferred income taxes on our balance sheet reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax assets and liabilities are as follows ($ in thousands): As of December 31, 2015 2014 Deferred tax assets: Share-based compensation $ 677 $ 654 Deferred revenue 1,154 581 Net operating loss carryforward 151 210 Compensation and benefits 168 128 Allowance for doubtful accounts 111 174 Other 33 24 Total deferred tax assets 2,294 1,771 Deferred tax liabilities: Intangible assets 1,339 1,028 Depreciation 15 51 Total gross deferred tax liabilities 1,354 1,079 Net deferred tax assets $ 940 $ 692 As of December 31, 2015, we had federal income tax net operating loss carryforwards of $444,000 available to offset future federal taxable income, if any. These carryforwards became available through our acquisition of TappIn, Inc. in 2011. These carryforwards expire in 2030 and 2031. As of December 31, 2015, we had federal income tax capital loss carryforwards of $1,100,000 which resulted from the reduction of our investments in and notes receivable from CoreTrace Corporation in 2012. We can realize capital loss carryforwards to the extent we have capital gains in future periods against which this capital loss can be deducted. We believe it uncertain that we will have sufficient capital gains in the future to support this deduction and accordingly have not reflected this item as a deferred tax asset in the schedule above. This carryforward expires in 2017. In assessing the realizability of deferred tax assets, we consider whether it is more-likely-than-not that a deferred tax asset will not be realized. Our assessment of the likelihood of having sufficient taxable income in the future to support deduction or utilization of the items giving rise to our deferred tax assets indicates it is more-likely-than-not that we will realize the deferred tax assets listed in the table above. We claim research and experimentation tax credits, or R&D tax credits, on certain of our tax returns and have included the effect of those credits in our provision for income taxes. Because our 2008, 2009 and 2010 tax returns were under routine examination by the Internal Revenue Service and because we believed it more-likely-than-not the examination could result in $125,000 of such credits we claimed not being allowed by the Internal Revenue Service, we recorded a reserve for an uncertain tax position in the amount of $125,000 in 2012 related to this item. The Internal Revenue Service completed its routine examination of our 2008, 2009 and 2010 income tax returns in 2015 and those results have been included in our provision for income taxes in 2015. We continue to maintain a reserve for an uncertain tax position in the amount of $90,000 for our 2011 through 2015 tax returns related to the R&D tax credit. The aggregate changes in the balance of our gross unrecognized tax benefits were as follows ($ in thousands): 2015 2014 Balance, beginning of year $ 125 $ 125 Increases for tax positions related to the current year 25 - Increases for tax positions related to prior years 23 - Decreases for tax positions related to prior years (51 ) - Decreases due to settlements related to prior years (32 ) - Balance, end of year $ 90 $ 125 To the extent they arise, we record interest and penalty expenses related to income taxes as components of other expense in our statement of operations. We incurred no such expenses in 2015 or 2014. We file state tax returns in various states. The taxes resulting from these filings are included in income tax expense. 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): Year Ended December 31, 2015 2014 Income tax expense (benefit) at federal statutory rate $ 2,208 $ 1,555 Increase (decrease) in taxes resulting from: State taxes, net of federal benefit 62 43 Other 49 29 R&D tax credit uncertain tax position (net) (35 ) - Research and development credit (251 ) (50 ) Domestic production activities deduction (136 ) (30 ) Income tax expense (benefit) per the statement of operations $ 1,897 $ 1,547 In November 2015, the FASB issued Accounting Standards Update (ASU) No. 2015-17, Income Tax: Balance Sheet Classification of Deferred Taxes |
10. Earnings Per Share
10. Earnings Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | 10. Earnings Per Share Earnings per share for the periods indicated were as follows (in thousands except per share amounts): Year ended December 31, 2015 2014 Numerators Numerator for basic and diluted earnings per share: Net income $ 4,598 $ 3,026 Denominators Denominators for basic and diluted earnings per share: Weighted average shares outstanding - basic 20,824 20,163 Dilutive potential common shares Stock options and awards 542 530 Denominator for diluted earnings per share 21,366 20,693 Net income per common share - basic $ 0.22 $ 0.15 Net income per common share – diluted $ 0.22 $ 0.15 |
11. Dividends
11. Dividends | 12 Months Ended |
Dec. 31, 2015 | |
Dividends [Abstract] | |
Dividends [Text Block] | 11. Dividends We paid dividends Year ended December 31, 2015 2014 Dividend per share of common stock $ 0.045 $ 0.050 |
12. Employee Benefit Plan
12. Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block Supplement [Abstract] | |
Compensation and Employee Benefit Plans [Text Block] | 12. Employee Benefit Plan We provide our employees a 401(k) plan under which we make employer matching contributions in amounts determined by our Board of Directors. Our matching contributions were $126,000, and $92,000 for the years ended December 31, 2015, and 2014, respectively. |
13. Segment and Geographic Disc
13. Segment and Geographic Disclosures | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | 13. Segment and Geographic Disclosures In accordance with FASB ASC Topic 280, Segment Reporting, we view our operations and manage our business as principally one segment. As a result, the financial information disclosed herein represents all of the material financial information related to our principal operating segment. Revenues derived from customers and partners located in the United States accounted for approximately 76% of the Company’s total revenues in 2015 and approximately 72% of the Company’s total revenues in 2014. The remaining revenues were from customers and partners located in foreign countries and each individual foreign country accounted for less than 10% of total revenues in 2015 and 2014. The Company attributes revenues to countries based on the country in which the customer or partner is located. None of our property and equipment was located in a foreign country as of December 31, 2015 and 2014. |
14. Concentration of Business V
14. Concentration of Business Volume and Credit Risk | 12 Months Ended |
Dec. 31, 2015 | |
Risks and Uncertainties [Abstract] | |
Concentration Risk Disclosure [Text Block] | 14. Concentration of Business Volume and Credit Risk Our cash, cash equivalents and long-term investments are on deposit in banks and are collectively insured by the Federal Deposit Insurance Corporation for $750,000. Our balances in excess of that amount are not insured. We may withdraw our cash deposits upon demand. We maintain our cash with multiple financial institutions of reputable credit to minimize our risk of loss. We generally provide credit to our customers under typical invoice payment terms (for example, net 30) that gives rise to trade accounts receivable from those customers. We do not require collateral from our customers. We perform ongoing evaluations of the credit risk related to offering these payment terms. We provide an allowance for uncollectible accounts based on our historical collections experience and the profile of our accounts receivable. In order to leverage the resources of third parties, we make our products available for purchase by end users through third-party, channel resellers even though those end users can also purchase those products directly from us. During 2015 and 2014, we earned approximately 11% and 10%, respectively, of our revenue from such sales through our largest, third-party, channel reseller. In 2015 and 2014, approximately 24%, and 28%, respectively, of our revenues resulted from sales to customers in foreign countries. We received substantially all of our revenues from foreign customers in U.S. dollars resulting in limited exchange rate risks. Our foreign sales are concentrated mostly in Canada, Western Europe and Latin America. We use software developers outside the United States to perform a portion of the coding for the development and maintenance of our software products. If we were unable to continue using these developers because of political or economic instability, we may have difficulty finding comparably skilled developers or may have to pay considerably more for the same work, which could have a material adverse impact on our financial position and results of operations. |
16. Quarterly Consolidated Fina
16. Quarterly Consolidated Financial Information (unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information [Text Block] | 15. Quarterly Consolidated Financial Information (unaudited) The quarterly consolidated financial information presented below reflects the expense reclassifications we implemented in preparing our financial statements for the year ended December 31, 2015, as described in the Reclassification of Expenses Fiscal Year 2015 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total Revenue Software licenses $ 2,458 $ 3,280 $ 2,852 $ 3,433 $ 12,023 Maintenance & support 4,034 4,093 4,142 4,326 16,595 Professional services 388 490 653 692 2,223 Total revenues 6,880 7,863 7,647 8,451 30,841 Cost of Revenues Software licenses 438 651 562 777 2,428 Maintenance & support 325 391 341 409 1,466 Professional services 317 335 605 518 1,775 Total cost of revenues 1,080 1,377 1,508 1,704 5,669 Gross profit 5,800 6,486 6,139 6,747 25,172 Operating Expenses Sales and marketing 2,295 2,476 2,289 2,965 10,025 General and administrative 1,723 1,457 1,449 1,539 6,168 Research and development 529 657 646 730 2,562 Total operating expenses 4,547 4,590 4,384 5,234 18,755 Income from operations 1,253 1,896 1,755 1,513 6,417 Other income (expense) 11 23 17 27 78 Net income before provision for income taxes 1,264 1,919 1,772 1,540 6,495 Income tax expense 449 594 542 312 1,897 Net income $ 815 $ 1,325 $ 1,230 $ 1,228 $ 4,598 Net income per share: Basic $ 0.04 $ 0.06 $ 0.06 $ 0.06 $ 0.22 Diluted $ 0.04 $ 0.06 $ 0.06 $ 0.06 $ 0.22 Weighted average shares outstanding Basic 20,647 20,804 20,892 20,949 20,824 Diluted 21,099 21,324 21,440 21,562 21,366 Fiscal Year 2014 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total Revenue Software licenses $ 1,912 $ 2,583 $ 2,291 $ 3,506 $ 10,292 Maintenance & support 3,579 3,813 3,790 3,851 15,033 Professional services 237 290 409 509 1,445 Total revenues 5,728 6,686 6,490 7,866 26,770 Cost of Revenues Software licenses 258 285 426 539 1,508 Maintenance & support 368 370 359 394 1,491 Professional services 149 161 236 239 785 Total cost of revenues 775 816 1,021 1,172 3,784 Gross profit 4,953 5,870 5,469 6,694 22,986 Operating Expenses Sales and marketing 2,084 2,740 2,391 2,797 10,012 General and administrative 1,536 1,668 1,301 1,671 6,176 Research and development 526 689 513 455 2,183 Total operating expenses 4,146 5,097 4,205 4,923 18,371 Income from operations 807 773 1,264 1,771 4,615 Other income (expense) (20 ) (27 ) (11 ) 16 (42 ) Net income before provision for income taxes 787 746 1,253 1,787 4,573 Income tax expense 253 258 471 565 1,547 Net income $ 534 $ 488 $ 782 $ 1,222 3,026 Net income per share: Basic $ 0.03 $ 0.02 $ 0.04 $ 0.06 $ 0.15 Diluted $ 0.03 $ 0.02 $ 0.04 $ 0.06 $ 0.15 Weighted average shares outstanding Basic 19,534 20,071 20,487 20,487 20,163 Diluted 20,394 20,622 20,890 20,859 20,693 Due to rounding, the sum of quarterly net income per share amounts may not equal net income per share amounts reported for the fiscal year in total. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation 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. |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation |
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 of the sale is fixed or determinable. · Collection of the sale amount 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 the 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] | Reclassification of Expenses Cost of revenue Cost of revenue consists of expenses associated with the production, delivery and support of the products and services we sell. Cost of license revenue consists primarily of amortization of the capitalized software development costs we incur when producing our software products, royalties we pay to use software developed by others for certain features of our products, and fees we pay to third parties who provide services supporting our SaaS and cloud-based subscription solutions. Cost of M&S revenue and cost of professional services revenue consist primarily of salaries and related costs of our employees and third parties we use to deliver these services. In preparing our financial statements for the year ended December 31, 2015, we refined our determination of the expenses we classify as cost of revenues in response to the evolution of our business and the resulting changes in the scope and nature of certain expenses we incur. As a result, we reclassified to cost of revenues certain expenses we had previously classified as part of selling, general and administrative expenses and depreciation and amortization. Depreciation and Amortization After making the cost of revenue reclassifications described above, the amount remaining in depreciation and amortization expense was related to sales and marketing and general and administrative activities. Accordingly, we reclassified that remaining depreciation and amortization expense to sales and marketing and general and administrative expense and eliminated the depreciation and amortization line in our statement of operations. Sales and marketing and general and administrative expenses We have revised the manner in which we present these expenses by separating them into separate lines for each of sales and marketing expenses and general and administrative expenses. Effect of reclassification of expenses These expense reclassifications occurred only within and between cost of revenues and operating expenses. These reclassifications had no effect on revenues, income from operations, income before income taxes, net income or earnings per share as previously reported. The following table illustrates the effects of these changes on previously reported amounts for the year ended December 31, 2014 ($ in thousands): Year Ended December 31, 2014 Reclassification of Previously Reported Amounts As Cost Capitalized Selling, As Previously of Software Cost Personnel General & Now Reported Revenues Amortization Costs Depreciation Administrative Reported Operating Revenues: Software licenses $ 10,292 $ 10,292 Maintenance and support 15,033 15,033 Professional services 1,445 1,445 Total revenues 26,770 26,770 Cost of Revenues: Software licenses 931 577 1,508 Maintenance and support 1,491 1,491 Professional services 87 698 785 Total cost of revenues - 3,784 Gross profit 22,986 Operating Expenses Sales and marketing - 10,012 10,012 General and administrative - 306 5,870 6,176 Cost of Revenues 1,018 (1,018 ) - Selling, general and administrative 18,071 (2,189 ) (15,882 ) - Research and development 2,183 2,183 Depreciation and amortization 883 (577 ) (306 ) - Total operating expenses 22,155 18,371 Income from operations 4,615 4,615 Other income (expense), net (42 ) (42 ) Income before income taxes 4,573 4,573 Income tax expense 1,547 1,547 Net income $ 3,026 $ 3,026 Comprehensive income $ 3,026 $ 3,026 Net income per common share - Basic $ 0.15 $ 0.15 Diluted $ 0.15 $ 0.15 |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and cash equivalents Cash and cash equivalents includes all cash and highly liquid investments with original maturities of three months or less. |
Sort Term Investments, Policy [Policy Text Block] | Short Term Investments Short-term investments consist of certificates of deposit held with financial institutions with contractual maturity dates less than one year from the balance sheet date. The Company has the intent and ability to hold these investments until their maturity dates and therefore accounts for them as held-to-maturity. These certificates of deposit are stated at amortized cost, which approximates fair value of these investments. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment Property and equipment is comprised of furniture and fixtures, software, computer equipment and leasehold improvements which are recorded at cost and depreciated using the straight-line method over their estimated useful lives. Furniture, fixtures and equipment have a useful life of five to seven years, computer equipment and software have a useful life of three years and leasehold improvements have a useful life that is the shorter of the term of the lease under which the improvements were made or the estimated useful life of the asset. Expenditures for maintenance and repairs are charged to operations as incurred. |
Investment, Policy [Policy Text Block] | Long-Term Investments Long-term investments consist of certificates of deposit held with financial institutions with contractual maturity dates greater than one year from the balance sheet date. The Company has the intent and ability to hold these investments until their maturity dates and therefore accounts for them as held-to-maturity. These certificates of deposit are stated at amortized cost, which approximates fair value of these investments. |
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, 2015, 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 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 in place 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. We periodically assess the carrying value of capitalized software development costs relative to our estimates of realizability through sales of products in the marketplace. |
Research and Development Expense, Policy [Policy Text Block] | Research and Development We expense research and development costs as incurred. |
Advertising Costs, Policy [Policy Text Block] | Advertising Expense We expense advertising costs as incurred as a component of our sales and marketing expenses. Advertising expense was $1.6 million and $1.4 million in 2015 and 2014, respectively. |
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. |
Earnings Per Share, Policy [Policy Text Block] | Earnings Per Share We compute basic earnings per share using the weighted-average number of common shares outstanding during the periods. We compute diluted earnings per share using the weighted-average number of common shares outstanding plus the number of common shares that would be issued assuming conversion of all potentially dilutive common shares outstanding. Awards of non-vested options are considered potentially dilutive common shares for the purpose of computing earnings per common share. We apply the treasury stock method to non-vested options under which the assumed proceeds include the amount the employee must pay to exercise the option plus the amount of unrecognized cost attributable to future periods less any expected tax benefits. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent accounting pronouncements In November 2015, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update (ASU) No. 2015-17, Income Tax: Balance Sheet Classification of Deferred Taxes In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update No. 2014-09 entitled Revenue from Contracts with Customers (Topic 606) |
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. |
2. Significant Accounting Pol24
2. Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Schedule of Reclassification Adjustments [Table Text Block] | These expense reclassifications occurred only within and between cost of revenues and operating expenses. These reclassifications had no effect on revenues, income from operations, income before income taxes, net income or earnings per share as previously reported. The following table illustrates the effects of these changes on previously reported amounts for the year ended December 31, 2014 ($ in thousands): Year Ended December 31, 2014 Reclassification of Previously Reported Amounts As Cost Capitalized Selling, As Previously of Software Cost Personnel General & Now Reported Revenues Amortization Costs Depreciation Administrative Reported Operating Revenues: Software licenses $ 10,292 $ 10,292 Maintenance and support 15,033 15,033 Professional services 1,445 1,445 Total revenues 26,770 26,770 Cost of Revenues: Software licenses 931 577 1,508 Maintenance and support 1,491 1,491 Professional services 87 698 785 Total cost of revenues - 3,784 Gross profit 22,986 Operating Expenses Sales and marketing - 10,012 10,012 General and administrative - 306 5,870 6,176 Cost of Revenues 1,018 (1,018 ) - Selling, general and administrative 18,071 (2,189 ) (15,882 ) - Research and development 2,183 2,183 Depreciation and amortization 883 (577 ) (306 ) - Total operating expenses 22,155 18,371 Income from operations 4,615 4,615 Other income (expense), net (42 ) (42 ) Income before income taxes 4,573 4,573 Income tax expense 1,547 1,547 Net income $ 3,026 $ 3,026 Comprehensive income $ 3,026 $ 3,026 Net income per common share - Basic $ 0.15 $ 0.15 Diluted $ 0.15 $ 0.15 |
3. Accounts Receivable (Tables)
3. Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Allowance for Credit Losses on Financing Receivables [Table Text Block] | Accounts receivable are presented net of an allowance for doubtful accounts. The activity in the Company’s allowance for doubtful accounts has been as follows ($ in thousands): Year Ended December 31, 2015 2014 Balance, beginning of period $ 511 $ 154 Provision for doubtful accounts 55 445 Accounts written off (241 ) (88 ) Balance, end of period $ 325 $ 511 |
4. Property and Equipment (Tabl
4. Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Property and equipment, at cost, consist of the following ($ in thousands): December 31, 2015 2014 Furniture and fixtures $ 620 $ 620 Software 638 634 Equipment 1,218 1,075 Leasehold improvements 559 559 3,035 2,888 Less accumulated depreciation (2,537 ) (2,272 ) Property and equipment, net $ 498 $ 616 |
5. Capitalized Software Devel27
5. Capitalized Software Development Costs (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block [Abstract] | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | Our capitalized software development costs profile is as follows: ($ in thousands): December 31, 2015 2014 Gross capitalized cost $ 5,714 $ 4,077 Accumulated amortization (1,732 ) (779 ) Net balance $ 3,982 $ 3,298 |
Finite-lived Intangible Assets Amortization Expense [Table Text Block] | Year Ended December 31, 2015 2014 Amount capitalized $ 1,967 $ 2,847 Amortization expense $ (1,283 ) $ (577 ) |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Table Text Block] | Released Unreleased Products Products Gross capitalized amount at December 31, 2015 $ 4,651 $ 1,063 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Future amortization expense for the year ending December 31, 2016 $ 1,486 2017 1,083 2018 350 Total $ 2,919 |
6. Commitments and Contingenc28
6. Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Loss Contingency [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Minimum rental commitments under operating leases at December 31, 2015, are as follows ($ in thousands): Year Ending December 31, 2016 $ 360 2017 360 2018 360 2019 120 Total $ 1,200 |
8. Stock Options, Restricted 29
8. Stock Options, Restricted Stock and Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 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): Year Ended December 31, 2015 2014 Share-based compensation expense $ 647 $ 521 |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Our stock option activity has been as follows: Weighted Weighted Average Average Remaining Aggregate Number of Exercise Contractual Intrinsic Shares Price Terms Value (Years) (000's) Outstanding at December 31, 2013 3,117,745 $ 1.92 4.46 $ 1,808 2014 Granted 394,500 $ 2.40 Forfeitures (172,920 ) $ 2.33 Exercised (1,317,150 ) $ 1.70 Outstanding at December 31, 2013 2,022,175 $ 2.12 6.07 $ 710 2015 Granted 538,000 $ 3.21 Forfeitures (154,650 ) $ 2.49 Exercised (314,200 ) $ 1.61 Outstanding at December 31, 2015 2,091,325 $ 2.45 6.09 $ 3,277 Exercisable at December 31, 2015 1,291,409 $ 2.22 4.40 $ 2,330 |
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: 2015 2014 Weighted average fair value of options granted during the year $ 1.40 $ 1.30 Intrinsic value of options exercised during the year $ 532,224 $ 1,160,000 Cash received from stock options exercised during the year $ 507,289 $ 2,243,000 Number of options that vested during the year 306,834 295,670 Fair value of options that vested during the year $ 334,788 $ 304,000 Unrecognized compensation expense related to non-vested options at end of year $ 780,059 $ 560,000 Weighted average years over which non-vested option expense will be recognized 2.03 1.93 |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | As of December 31, 2015 Options Outstanding Options Exercisable Weighted Average Weighted Weighted Underlying Remaining Average Number of Average Range of Shares Contractual Exercise Underlying Exercise Exercise Prices Outstanding Life Price Shares Price $ 0.55 - $1.43 204,350 3.94 $ 1.14 185,569 $ 1.11 $ 1.47 - $2.26 652,125 5.98 $ 1.80 574,965 $ 1.82 $ 2.27 - $3.42 1,079,850 6.97 $ 2.86 400,875 $ 2.67 $ 3.50 - $4.21 155,000 3.30 $ 4.05 130,000 $ 4.10 Total options 2,091,325 1,291,409 |
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: Year Ended December 31, 2015 2014 Expected volatility 57 % 56 % Expected annual dividend yield 2.4 % 0 Risk free rate of return 1.58 % 1.91 % Expected option term (years) 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, 2013 80,000 $ 1.65 2014 Shares granted with restrictions 80,000 $ 2.32 Shares vested and restrictions removed (80,000 ) $ 1.65 $ 189,600 Restricted Shares Outstanding at December 31, 2014 80,000 $ 2.32 2015 Shares granted with restrictions 80,000 $ 3.34 Shares vested and restrictions removed (80,000 ) $ 2.32 $ 267,200 Restricted Shares Outstanding at December 31, 2015 80,000 $ 3.34 |
9. Income Taxes (Tables)
9. Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
9. Income Taxes (Tables) [Line Items] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The components of our income tax expense (benefit) are as follows ($ in thousands): 2015 2014 Current Deferred Total Current Deferred Total Federal $ 1,993 $ (243 ) $ 1,750 $ 733 $ 739 $ 1,472 Foreign 50 - 50 - - - State 102 (5 ) 97 93 (18 ) 75 Total $ 2,145 $ (248 ) $ 1,897 $ 826 $ 721 $ 1,547 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Deferred income taxes on our balance sheet reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax assets and liabilities are as follows ($ in thousands): As of December 31, 2015 2014 Deferred tax assets: Share-based compensation $ 677 $ 654 Deferred revenue 1,154 581 Net operating loss carryforward 151 210 Compensation and benefits 168 128 Allowance for doubtful accounts 111 174 Other 33 24 Total deferred tax assets 2,294 1,771 Deferred tax liabilities: Intangible assets 1,339 1,028 Depreciation 15 51 Total gross deferred tax liabilities 1,354 1,079 Net deferred tax assets $ 940 $ 692 |
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | The aggregate changes in the balance of our gross unrecognized tax benefits were as follows ($ in thousands): 2015 2014 Balance, beginning of year $ 125 $ 125 Increases for tax positions related to the current year 25 - Increases for tax positions related to prior years 23 - Decreases for tax positions related to prior years (51 ) - Decreases due to settlements related to prior years (32 ) - Balance, end of year $ 90 $ 125 |
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): Year Ended December 31, 2015 2014 Income tax expense (benefit) at federal statutory rate $ 2,208 $ 1,555 Increase (decrease) in taxes resulting from: State taxes, net of federal benefit 62 43 Other 49 29 R&D tax credit uncertain tax position (net) (35 ) - Research and development credit (251 ) (50 ) Domestic production activities deduction (136 ) (30 ) Income tax expense (benefit) per the statement of operations $ 1,897 $ 1,547 |
Domestic Tax Authority [Member] | |
9. Income Taxes (Tables) [Line Items] | |
Schedule of Components of Income Tax Expense (Benefit) [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): 2015 2014 Current federal income tax expense in the statement of operations $ 1,993 $ 733 Tax (deficiency) from stock-based compensation recorded in additional paid-in capital (58 ) 227 Current taxes per our federal income tax return $ 1,935 $ 960 |
10. Earnings Per Share (Tables)
10. Earnings Per Share (Tables) | 12 Months Ended |
Dec. 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): Year ended December 31, 2015 2014 Numerators Numerator for basic and diluted earnings per share: Net income $ 4,598 $ 3,026 Denominators Denominators for basic and diluted earnings per share: Weighted average shares outstanding - basic 20,824 20,163 Dilutive potential common shares Stock options and awards 542 530 Denominator for diluted earnings per share 21,366 20,693 Net income per common share - basic $ 0.22 $ 0.15 Net income per common share – diluted $ 0.22 $ 0.15 |
11. Dividends (Tables)
11. Dividends (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Dividends [Abstract] | |
Schedule of Dividends Payable [Table Text Block] | We paid dividends as follows: Year ended December 31, 2015 2014 Dividend per share of common stock $ 0.045 $ 0.050 |
16. Quarterly Consolidated Fi33
16. Quarterly Consolidated Financial Information (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information [Table Text Block] | Quarterly Consolidated Financial Information (unaudited) Fiscal Year 2015 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total Revenue Software licenses $ 2,458 $ 3,280 $ 2,852 $ 3,433 $ 12,023 Maintenance & support 4,034 4,093 4,142 4,326 16,595 Professional services 388 490 653 692 2,223 Total revenues 6,880 7,863 7,647 8,451 30,841 Cost of Revenues Software licenses 438 651 562 777 2,428 Maintenance & support 325 391 341 409 1,466 Professional services 317 335 605 518 1,775 Total cost of revenues 1,080 1,377 1,508 1,704 5,669 Gross profit 5,800 6,486 6,139 6,747 25,172 Operating Expenses Sales and marketing 2,295 2,476 2,289 2,965 10,025 General and administrative 1,723 1,457 1,449 1,539 6,168 Research and development 529 657 646 730 2,562 Total operating expenses 4,547 4,590 4,384 5,234 18,755 Income from operations 1,253 1,896 1,755 1,513 6,417 Other income (expense) 11 23 17 27 78 Net income before provision for income taxes 1,264 1,919 1,772 1,540 6,495 Income tax expense 449 594 542 312 1,897 Net income $ 815 $ 1,325 $ 1,230 $ 1,228 $ 4,598 Net income per share: Basic $ 0.04 $ 0.06 $ 0.06 $ 0.06 $ 0.22 Diluted $ 0.04 $ 0.06 $ 0.06 $ 0.06 $ 0.22 Weighted average shares outstanding Basic 20,647 20,804 20,892 20,949 20,824 Diluted 21,099 21,324 21,440 21,562 21,366 Fiscal Year 2014 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total Revenue Software licenses $ 1,912 $ 2,583 $ 2,291 $ 3,506 $ 10,292 Maintenance & support 3,579 3,813 3,790 3,851 15,033 Professional services 237 290 409 509 1,445 Total revenues 5,728 6,686 6,490 7,866 26,770 Cost of Revenues Software licenses 258 285 426 539 1,508 Maintenance & support 368 370 359 394 1,491 Professional services 149 161 236 239 785 Total cost of revenues 775 816 1,021 1,172 3,784 Gross profit 4,953 5,870 5,469 6,694 22,986 Operating Expenses Sales and marketing 2,084 2,740 2,391 2,797 10,012 General and administrative 1,536 1,668 1,301 1,671 6,176 Research and development 526 689 513 455 2,183 Total operating expenses 4,146 5,097 4,205 4,923 18,371 Income from operations 807 773 1,264 1,771 4,615 Other income (expense) (20 ) (27 ) (11 ) 16 (42 ) Net income before provision for income taxes 787 746 1,253 1,787 4,573 Income tax expense 253 258 471 565 1,547 Net income $ 534 $ 488 $ 782 $ 1,222 3,026 Net income per share: Basic $ 0.03 $ 0.02 $ 0.04 $ 0.06 $ 0.15 Diluted $ 0.03 $ 0.02 $ 0.04 $ 0.06 $ 0.15 Weighted average shares outstanding Basic 19,534 20,071 20,487 20,487 20,163 Diluted 20,394 20,622 20,890 20,859 20,693 |
2. Significant Accounting Pol34
2. Significant Accounting Policies (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
2. Significant Accounting Policies (Details) [Line Items] | ||
Goodwill, Impairment Loss (in Dollars) | $ 0 | |
Advertising Expense (in Dollars) | $ 1,600 | $ 1,400 |
Probability of occurrence of event | 50.00% | |
Computer Equipment [Member] | ||
2. Significant Accounting Policies (Details) [Line Items] | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Software and Software Development Costs [Member] | ||
2. Significant Accounting Policies (Details) [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 3 years | |
Minimum [Member] | Furniture and Fixtures [Member] | ||
2. Significant Accounting Policies (Details) [Line Items] | ||
Property, Plant and Equipment, Useful Life | 5 years | |
Maximum [Member] | Furniture and Fixtures [Member] | ||
2. Significant Accounting Policies (Details) [Line Items] | ||
Property, Plant and Equipment, Useful Life | 7 years |
2. Significant Accounting Poli
2. Significant Accounting Policies (Details) - Schedule of Reclassification Adjustments - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2014 | Dec. 04, 2014 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Revenues: | ||||||||||||
Software licenses | $ 10,292 | $ 3,506 | $ 3,433 | $ 2,852 | $ 3,280 | $ 2,458 | $ 2,291 | $ 2,583 | $ 1,912 | $ 12,023 | $ 12,023 | $ 10,292 |
Maintenance and support | 15,033 | 3,851 | 4,326 | 4,142 | 4,093 | 4,034 | 3,790 | 3,813 | 3,579 | 16,595 | 16,595 | 15,033 |
Professional services | 1,445 | 509 | 692 | 653 | 490 | 388 | 409 | 290 | 237 | 2,223 | 2,223 | 1,445 |
Total revenues | 26,770 | 7,866 | 8,451 | 7,647 | 7,863 | 6,880 | 6,490 | 6,686 | 5,728 | 30,841 | 30,841 | 26,770 |
Cost of Revenues: | ||||||||||||
Software licenses | 1,508 | 539 | 777 | 562 | 651 | 438 | 426 | 285 | 258 | 2,428 | 2,428 | 1,508 |
Maintenance and support | 1,491 | 394 | 409 | 341 | 391 | 325 | 359 | 370 | 368 | 1,466 | 1,466 | 1,491 |
Professional services | 785 | 239 | 518 | 605 | 335 | 317 | 236 | 161 | 149 | 1,775 | 1,775 | 785 |
Total cost of revenues | 3,784 | 1,172 | 1,704 | 1,508 | 1,377 | 1,080 | 1,021 | 816 | 775 | 5,669 | 5,669 | 3,784 |
Gross profit | 22,986 | 6,694 | 6,747 | 6,139 | 6,486 | 5,800 | 5,469 | 5,870 | 4,953 | 25,172 | 25,172 | 22,986 |
Operating Expenses | ||||||||||||
Sales and marketing | 10,012 | 2,797 | 2,965 | 2,289 | 2,476 | 2,295 | 2,391 | 2,740 | 2,084 | 10,025 | 10,025 | 10,012 |
General and administrative | 6,176 | 1,671 | 1,539 | 1,449 | 1,457 | 1,723 | 1,301 | 1,668 | 1,536 | 6,168 | 6,168 | 6,176 |
Research and development | 2,183 | 455 | 730 | 646 | 657 | 529 | 513 | 689 | 526 | 2,562 | 2,562 | 2,183 |
Depreciation and amortization | 1,553 | 883 | ||||||||||
Income from operations | 4,615 | 1,771 | 1,513 | 1,755 | 1,896 | 1,253 | 1,264 | 773 | 807 | 6,417 | 6,417 | 4,615 |
Other income (expense), net | 78 | (42) | ||||||||||
Income before income taxes | 4,573 | 1,787 | 1,540 | 1,772 | 1,919 | 1,264 | 1,253 | 746 | 787 | 6,495 | 6,495 | 4,573 |
Income tax expense | 1,547 | 565 | 312 | 542 | 594 | 449 | 471 | 258 | 253 | 1,897 | 1,897 | 1,547 |
Net income | $ 3,026 | $ 1,222 | $ 1,228 | $ 1,230 | $ 1,325 | $ 815 | $ 782 | $ 488 | $ 534 | $ 4,598 | 4,598 | 3,026 |
Comprehensive income | $ 4,598 | $ 3,026 | ||||||||||
Net income per common share - | ||||||||||||
Basic (in Dollars per share) | $ 0.15 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.04 | $ 0.04 | $ 0.02 | $ 0.03 | $ 0.22 | $ 0.22 | $ 0.15 |
Diluted (in Dollars per share) | $ 0.15 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.04 | $ 0.04 | $ 0.02 | $ 0.03 | $ 0.22 | $ 0.22 | $ 0.15 |
Scenario, Previously Reported [Member] | ||||||||||||
Operating Revenues: | ||||||||||||
Software licenses | $ 10,292 | |||||||||||
Maintenance and support | 15,033 | |||||||||||
Professional services | 1,445 | |||||||||||
Total revenues | 26,770 | |||||||||||
Cost of Revenues: | ||||||||||||
Total cost of revenues | 0 | |||||||||||
Operating Expenses | ||||||||||||
Sales and marketing | 0 | |||||||||||
General and administrative | 0 | |||||||||||
Cost of Revenues | 1,018 | |||||||||||
Selling, general and administrative | 18,071 | |||||||||||
Research and development | 2,183 | |||||||||||
Depreciation and amortization | 883 | |||||||||||
Total operating expenses | 22,155 | |||||||||||
Income from operations | 4,615 | |||||||||||
Other income (expense), net | (42) | |||||||||||
Income before income taxes | 4,573 | |||||||||||
Income tax expense | 1,547 | |||||||||||
Net income | 3,026 | |||||||||||
Comprehensive income | $ 3,026 | |||||||||||
Net income per common share - | ||||||||||||
Basic (in Dollars per share) | $ 0.15 | |||||||||||
Diluted (in Dollars per share) | $ 0.15 | |||||||||||
Restatement Adjustment [Member] | Cost of Sales [Member] | ||||||||||||
Cost of Revenues: | ||||||||||||
Software licenses | $ 931 | |||||||||||
Professional services | 87 | |||||||||||
Operating Expenses | ||||||||||||
Cost of Revenues | (1,018) | |||||||||||
Comprehensive income | 0 | |||||||||||
Restatement Adjustment [Member] | Capitalized Software Cost Amortization [Member] | ||||||||||||
Cost of Revenues: | ||||||||||||
Software licenses | 577 | |||||||||||
Operating Expenses | ||||||||||||
Depreciation and amortization | (577) | |||||||||||
Comprehensive income | 0 | |||||||||||
Restatement Adjustment [Member] | Personnel Costs [Member] | ||||||||||||
Cost of Revenues: | ||||||||||||
Maintenance and support | 1,491 | |||||||||||
Professional services | 698 | |||||||||||
Operating Expenses | ||||||||||||
Selling, general and administrative | (2,189) | |||||||||||
Comprehensive income | 0 | |||||||||||
Restatement Adjustment [Member] | Depreciation [Member] | ||||||||||||
Cost of Revenues: | ||||||||||||
Total cost of revenues | 0 | |||||||||||
Operating Expenses | ||||||||||||
General and administrative | 306 | |||||||||||
Depreciation and amortization | (306) | |||||||||||
Comprehensive income | 0 | |||||||||||
Restatement Adjustment [Member] | Selling, General and Administrative Expenses [Member] | ||||||||||||
Cost of Revenues: | ||||||||||||
Total cost of revenues | 0 | |||||||||||
Operating Expenses | ||||||||||||
Sales and marketing | 10,012 | |||||||||||
General and administrative | 5,870 | |||||||||||
Selling, general and administrative | (15,882) | |||||||||||
Comprehensive income | 0 | |||||||||||
Scenario, Actual [Member] | ||||||||||||
Operating Revenues: | ||||||||||||
Software licenses | 10,292 | |||||||||||
Maintenance and support | 15,033 | |||||||||||
Professional services | 1,445 | |||||||||||
Total revenues | 26,770 | |||||||||||
Cost of Revenues: | ||||||||||||
Software licenses | 1,508 | |||||||||||
Maintenance and support | 1,491 | |||||||||||
Professional services | 785 | |||||||||||
Total cost of revenues | 3,784 | |||||||||||
Gross profit | 22,986 | |||||||||||
Operating Expenses | ||||||||||||
Sales and marketing | 10,012 | |||||||||||
General and administrative | 6,176 | |||||||||||
Cost of Revenues | 0 | |||||||||||
Selling, general and administrative | 0 | |||||||||||
Research and development | 2,183 | |||||||||||
Depreciation and amortization | 0 | |||||||||||
Total operating expenses | 18,371 | |||||||||||
Income from operations | 4,615 | |||||||||||
Other income (expense), net | (42) | |||||||||||
Income before income taxes | 4,573 | |||||||||||
Income tax expense | 1,547 | |||||||||||
Net income | 3,026 | |||||||||||
Comprehensive income | $ 3,026 | |||||||||||
Net income per common share - | ||||||||||||
Basic (in Dollars per share) | $ 0.15 | |||||||||||
Diluted (in Dollars per share) | $ 0.15 |
3. Accounts Receivab
3. Accounts Receivable (Details) - Allowance for Credit Losses on Financing Receivables - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Allowance for Credit Losses on Financing Receivables [Abstract] | ||
Balance, beginning of period | $ 511 | $ 154 |
Provision for doubtful accounts | 55 | 445 |
Accounts written off | (241) | (88) |
Balance, end of period | $ 325 | $ 511 |
4. Property and Equi
4. Property and Equipment (Details) - Property, Plant and Equipment - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 3,035 | $ 2,888 |
Less accumulated depreciation | (2,537) | (2,272) |
Property and equipment, net | 498 | 616 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 620 | 620 |
Software and Software Development Costs [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 638 | 634 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 1,218 | 1,075 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 559 | $ 559 |
5. Capitalized Softw
5. Capitalized Software Development Costs (Details) - Schedule of Finite-Lived Intangible Assets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Finite-Lived Intangible Assets [Abstract] | ||
Gross capitalized cost | $ 5,714 | $ 4,077 |
Accumulated amortization | (1,732) | (779) |
Net balance | $ 3,982 | $ 3,298 |
5. Capitalized Sof39
5. Capitalized Software Development Costs (Details) - Finite-lived Intangible Assets Amortization Expense - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Finite-lived Intangible Assets Amortization Expense [Abstract] | ||
Amount capitalized | $ 1,967 | $ 2,847 |
Amortization expense | $ (1,283) | $ (577) |
5. Capitalized Sof40
5. Capitalized Software Development Costs (Details) - Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
5. Capitalized Software Development Costs (Details) - Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Line Items] | ||
Gross capitalized amount at December 31, 2015 | $ 5,714 | $ 4,077 |
Computer Software, Intangible Asset [Member] | Released Products [Member] | ||
5. Capitalized Software Development Costs (Details) - Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Line Items] | ||
Gross capitalized amount at December 31, 2015 | 4,651 | |
Computer Software, Intangible Asset [Member] | Unreleased Products [Member] | ||
5. Capitalized Software Development Costs (Details) - Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Line Items] | ||
Gross capitalized amount at December 31, 2015 | $ 1,063 |
5. Capitalized Sof41
5. Capitalized Software Development Costs (Details) - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense $ in Thousands | Dec. 31, 2015USD ($) |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Abstract] | |
2,016 | $ 1,486 |
2,017 | 1,083 |
2,018 | 350 |
Total | $ 2,919 |
6. Commitments and Contingenc42
6. Commitments and Contingencies (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Loss Contingency [Abstract] | ||
Operating Leases, Rent Expense | $ 347,000 | $ 458,000 |
Deferred Rent Credit | 44,000 | |
Other Commitment | $ 1,200,000 |
6. Commitments and C
6. Commitments and Contingencies (Details) - Schedule of Future Minimum Rental Payments for Operating Leases $ in Thousands | Dec. 31, 2015USD ($) |
Schedule of Future Minimum Rental Payments for Operating Leases [Abstract] | |
2,016 | $ 360 |
2,017 | 360 |
2,018 | 360 |
2,019 | 120 |
Total | $ 1,200 |
8. Stock Options, Restricted 44
8. Stock Options, Restricted Stock and Share-Based Compensation (Details) - shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
2010 Employee Long-Term Equity Incentive Plan [Member] | ||
8. 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, Number of Shares Available for Grant | 925,590 | |
2015 Directors Plan [Member] | ||
8. 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 | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 420,000 | |
Employee Stock Option [Member] | 2010 Employee Long-Term Equity Incentive Plan [Member] | ||
8. Stock Options, Restricted Stock and Share-Based Compensation (Details) [Line Items] | ||
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 | |
Restricted Stock [Member] | ||
8. Stock Options, Restricted Stock and Share-Based Compensation (Details) [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | 0 | 0 |
Restricted Stock [Member] | 2015 Directors Plan [Member] | ||
8. 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 |
8. Stock Options, Re
8. Stock Options, Restricted Stock and Share-Based Compensation (Details) - Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Abstract] | ||
Share-based compensation expense | $ 647 | $ 521 |
8. Stock Options, 46
8. Stock Options, Restricted Stock and Share-Based Compensation (Details) - Schedule of Share-based Compensation, Stock Options, Activity - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Share-based Compensation, Stock Options, Activity [Abstract] | |||
Number of Shares, Outstanding | 2,022,175 | 3,117,745 | |
Weighted Average Exercise Price, Outstanding | $ 2.12 | $ 1.92 | |
Weighted Average Remaining Contractual Term, Outstanding | 6 years 32 days | 6 years 25 days | 4 years 167 days |
Aggregate Intrinsic Value, Outstanding | $ 710 | $ 1,808 | |
2,014 | |||
Number of Shares, Granted | 538,000 | 394,500 | |
Weighted Average Exercise Price, Granted | $ 3.21 | $ 2.40 | |
Number of Shares, Forfeitures | (154,650) | (172,920) | |
Weighted Average Exercise Price, Forfeitures | $ 2.49 | $ 2.33 | |
Number of Shares, Exercised | (314,200) | (1,317,150) | |
Weighted Average Exercise Price, Exercised | $ 1.61 | $ 1.70 | |
2,015 | |||
Exercisable at December 31, 2015 | 1,291,409 | ||
Exercisable at December 31, 2015 | $ 2.22 | ||
Exercisable at December 31, 2015 | 4 years 146 days | ||
Exercisable at December 31, 2015 | $ 2,330 | ||
Number of Shares, Outstanding | 2,091,325 | 2,022,175 | |
Weighted Average Exercise Price, Outstanding | $ 2.45 | $ 2.12 | |
Aggregate Intrinsic Value, Outstanding | $ 3,277 | $ 710 |
8. Stock Options, 47
8. Stock Options, Restricted Stock and Share-Based Compensation (Details) - Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable [Abstract] | ||
Weighted average fair value of options granted during the year (in Dollars per share) | $ 1.40 | $ 1.30 |
Intrinsic value of options exercised during the year | $ 532,224 | $ 1,160,000 |
Cash received from stock options exercised during the year | $ 507,289 | $ 2,243,000 |
Number of options that vested during the year (in Shares) | 306,834 | 295,670 |
Fair value of options that vested during the year | $ 334,788 | $ 304,000 |
Unrecognized compensation expense related to non-vested options at end of year | $ 780,059 | $ 560,000 |
Weighted average years over which non-vested option expense will be recognized | 2 years 10 days | 1 year 339 days |
8. Stock Options, 48
8. Stock Options, Restricted Stock and Share-Based Compensation (Details) - Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Underlying Shares, Options Outstanding (in Shares) | shares | 2,091,325 |
Underlying Shares, Options Exercisable (in Shares) | shares | 1,291,409 |
$0.55 - $1.43 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Lower Limit | $ 0.55 |
Range of Exercise Prices, Upper Limit | $ 1.43 |
Underlying Shares, Options Outstanding (in Shares) | shares | 204,350 |
Weighted Average Remaining Contractual Life, Options Outstanding | 3 years 343 days |
Weighted Average Exercise Price, Options Outstanding | $ 1.14 |
Underlying Shares, Options Exercisable (in Shares) | shares | 185,569 |
Weighted Average Exercise Price, Options Exercisable | $ 1.11 |
$1.47 - $2.26 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Lower Limit | 1.47 |
Range of Exercise Prices, Upper Limit | $ 2.26 |
Underlying Shares, Options Outstanding (in Shares) | shares | 652,125 |
Weighted Average Remaining Contractual Life, Options Outstanding | 5 years 357 days |
Weighted Average Exercise Price, Options Outstanding | $ 1.80 |
Underlying Shares, Options Exercisable (in Shares) | shares | 574,965 |
Weighted Average Exercise Price, Options Exercisable | $ 1.82 |
$2.27 - $3.42 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Lower Limit | 2.27 |
Range of Exercise Prices, Upper Limit | $ 3.42 |
Underlying Shares, Options Outstanding (in Shares) | shares | 1,079,850 |
Weighted Average Remaining Contractual Life, Options Outstanding | 6 years 354 days |
Weighted Average Exercise Price, Options Outstanding | $ 2.86 |
Underlying Shares, Options Exercisable (in Shares) | shares | 400,875 |
Weighted Average Exercise Price, Options Exercisable | $ 2.67 |
$3.50 - $4.21 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Lower Limit | 3.50 |
Range of Exercise Prices, Upper Limit | $ 4.21 |
Underlying Shares, Options Outstanding (in Shares) | shares | 155,000 |
Weighted Average Remaining Contractual Life, Options Outstanding | 3 years 109 days |
Weighted Average Exercise Price, Options Outstanding | $ 4.05 |
Underlying Shares, Options Exercisable (in Shares) | shares | 130,000 |
Weighted Average Exercise Price, Options Exercisable | $ 4.10 |
8. Stock Options, 49
8. Stock Options, Restricted Stock and Share-Based Compensation (Details) - Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Abstract] | ||
Expected volatility | 57.00% | 56.00% |
Expected annual dividend yield | 2.40% | 0.00% |
Risk free rate of return | 1.58% | 1.91% |
Expected option term (years) | 6 years | 6 years |
8. Stock Options, 50
8. Stock Options, Restricted Stock and Share-Based Compensation (Details) - Nonvested Restricted Stock Shares Activity - Restricted Stock [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
8. Stock Options, Restricted Stock and Share-Based Compensation (Details) - Nonvested Restricted Stock Shares Activity [Line Items] | ||
Number of shares, restricted shares outstanding | 80,000 | 80,000 |
Grant date fair value per share, restricted shares outstanding | $ 2.32 | $ 1.65 |
2,014 | ||
Number of shares, shares granted with restrictions | 80,000 | 80,000 |
Grant date fair value per share, shares granted with restrictions | $ 3.34 | $ 2.32 |
Number of shares, shares vested and restrictions eliminated | (80,000) | (80,000) |
Grant date fair value per share, shares vested and restrictions eliminated | $ 2.32 | $ 1.65 |
Total fair value of shares that vested, shares vested and restrictions eliminated | $ 267,200 | $ 189,600 |
2,015 | ||
Number of shares, restricted shares outstanding | 80,000 | 80,000 |
Grant date fair value per share, restricted shares outstanding | $ 3.34 | $ 2.32 |
9. Income Taxes (Details)
9. Income Taxes (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2013 | |
9. Income Taxes (Details) [Line Items] | ||||
Deferred Tax Assets, Capital Loss Carryforwards | $ 1,100,000 | |||
Income Tax Examination, Estimate of Possible Loss | $ 125,000 | |||
Unrecognized Tax Benefits | $ 90,000 | $ 125,000 | $ 125,000 | $ 125,000 |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 34.00% | 34.00% | ||
Deferred Tax Assets, Net, Current | $ 402,000 | |||
Deferred Tax Assets, Net, Noncurrent | 290,000 | |||
Deferred Tax Assets, Net | $ 940,000 | $ 692,000 | ||
Domestic Tax Authority [Member] | ||||
9. Income Taxes (Details) [Line Items] | ||||
Operating Loss Carryforwards | $ 444,000 | |||
Minimum [Member] | Domestic Tax Authority [Member] | ||||
9. Income Taxes (Details) [Line Items] | ||||
Federal Net Operating Loss Carryforwards Expiration Year | 2,030 | |||
Maximum [Member] | Domestic Tax Authority [Member] | ||||
9. Income Taxes (Details) [Line Items] | ||||
Federal Net Operating Loss Carryforwards Expiration Year | 2,031 |
9. Income Taxes (De
9. Income Taxes (Details) - Schedule of Components of Income Tax Expense (Benefit) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2014 | Dec. 04, 2014 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Components of Income Tax Expense (Benefit) [Abstract] | ||||||||||||
Federal | $ 1,993 | $ 733 | ||||||||||
Federal | (243) | 739 | ||||||||||
Federal | 1,750 | 1,472 | ||||||||||
Foreign | 50 | 0 | ||||||||||
Foreign | 0 | 0 | ||||||||||
Foreign | 50 | 0 | ||||||||||
State | 102 | 93 | ||||||||||
State | (5) | (18) | ||||||||||
State | 97 | 75 | ||||||||||
Total | 2,145 | 826 | ||||||||||
Total | (248) | 968 | ||||||||||
Total | $ 1,547 | $ 565 | $ 312 | $ 542 | $ 594 | $ 449 | $ 471 | $ 258 | $ 253 | $ 1,897 | $ 1,897 | $ 1,547 |
9. Income Taxes (53
9. Income Taxes (Details) - Schedule of Components of Income Tax Expense (Benefit) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Components of Income Tax Expense (Benefit) [Abstract] | ||
Current federal income tax expense in the statement of operations | $ 1,993 | $ 733 |
Tax (deficiency) from stock-based compensation recorded in additional paid-in capital | (58) | 227 |
Current taxes per our federal income tax return | $ 1,935 | $ 960 |
9. Income Taxes (54
9. Income Taxes (Details) - Schedule of Deferred Tax Assets and Liabilities - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Share-based compensation | $ 677 | $ 654 |
Deferred revenue | 1,154 | 581 |
Net operating loss carryforward | 151 | 210 |
Compensation and benefits | 168 | 128 |
Allowance for doubtful accounts | 111 | 174 |
Other | 33 | 24 |
Total deferred tax assets | 2,294 | 1,771 |
Deferred tax liabilities: | ||
Intangible assets | 1,339 | 1,028 |
Depreciation | 15 | 51 |
Total gross deferred tax liabilities | 1,354 | 1,079 |
Net deferred tax assets | $ 940 | $ 692 |
9. Income Taxes (55
9. Income Taxes (Details) - Schedule of Unrecognized Tax Benefits Roll Forward - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Unrecognized Tax Benefits Roll Forward [Abstract] | ||
Balance, beginning of year | $ 125 | $ 125 |
Increases for tax positions related to the current year | 25 | 0 |
Increases for tax positions related to prior years | 23 | 0 |
Decreases for tax positions related to prior years | (51) | 0 |
Decreases due to settlements related to prior years | (32) | 0 |
Balance, end of year | $ 90 | $ 125 |
9. Income Taxes (56
9. Income Taxes (Details) - Schedule of Effective Income Tax Rate Reconciliation - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2014 | Dec. 04, 2014 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Effective Income Tax Rate Reconciliation [Abstract] | ||||||||||||
Income tax expense (benefit) at federal statutory rate | $ 2,208 | $ 1,555 | ||||||||||
Increase (decrease) in taxes resulting from: | ||||||||||||
State taxes, net of federal benefit | 62 | 43 | ||||||||||
Other | 49 | 29 | ||||||||||
R&D tax credit uncertain tax position (net) | (35) | 0 | ||||||||||
Research and development credit | (251) | (50) | ||||||||||
Domestic production activities deduction | (136) | (30) | ||||||||||
Income tax expense (benefit) per the statement of operations | $ 1,547 | $ 565 | $ 312 | $ 542 | $ 594 | $ 449 | $ 471 | $ 258 | $ 253 | $ 1,897 | $ 1,897 | $ 1,547 |
10. Earnings Per S
10. Earnings Per Share (Details) - Schedule of Earnings Per Share, Basic and Diluted - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2014 | Dec. 04, 2014 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Numerator for basic and diluted earnings per share: | ||||||||||||
Net income (in Dollars) | $ 3,026 | $ 1,222 | $ 1,228 | $ 1,230 | $ 1,325 | $ 815 | $ 782 | $ 488 | $ 534 | $ 4,598 | $ 4,598 | $ 3,026 |
Denominators for basic and diluted earnings per share: | ||||||||||||
Weighted average shares outstanding - basic | 20,163 | 20,487 | 20,949 | 20,892 | 20,804 | 20,647 | 20,487 | 20,071 | 19,534 | 20,824 | 20,824 | 20,163 |
Dilutive potential common shares | ||||||||||||
Stock options and awards | 542 | 530 | ||||||||||
Denominator for diluted earnings per share | 20,693 | 20,859 | 21,562 | 21,440 | 21,324 | 21,099 | 20,890 | 20,622 | 20,394 | 21,366 | 21,366 | 20,693 |
Net income per common share - basic (in Dollars per share) | $ 0.15 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.04 | $ 0.04 | $ 0.02 | $ 0.03 | $ 0.22 | $ 0.22 | $ 0.15 |
Net income per common share – diluted (in Dollars per share) | $ 0.15 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.04 | $ 0.04 | $ 0.02 | $ 0.03 | $ 0.22 | $ 0.22 | $ 0.15 |
11. Dividends (De
11. Dividends (Details) - Schedule of Dividends Payable - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Dividends Payable [Abstract] | ||
Dividend per share of common stock | $ 0.045 | $ 0.050 |
12. Employee Benefit Plan (Deta
12. Employee Benefit Plan (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure Text Block Supplement [Abstract] | ||
Defined Benefit Plan, Contributions by Employer | $ 126,000 | $ 92,000 |
13. Segment and Geographic Di60
13. Segment and Geographic Disclosures (Details) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
13. Segment and Geographic Disclosures (Details) [Line Items] | ||
Number of Operating Segments | 1 | |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | ||
13. Segment and Geographic Disclosures (Details) [Line Items] | ||
Concentration Risk, Percentage | 11.00% | 10.00% |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | UNITED STATES | ||
13. Segment and Geographic Disclosures (Details) [Line Items] | ||
Concentration Risk, Percentage | 76.00% | 72.00% |
14. Concentration of Business61
14. Concentration of Business Volume and Credit Risk (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
14. Concentration of Business Volume and Credit Risk (Details) [Line Items] | ||
Cash, FDIC Insured Amount (in Dollars) | $ 750,000 | |
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | ||
14. Concentration of Business Volume and Credit Risk (Details) [Line Items] | ||
Concentration Risk, Percentage | 11.00% | 10.00% |
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | ||
14. Concentration of Business Volume and Credit Risk (Details) [Line Items] | ||
Concentration Risk, Percentage | 24.00% | 28.00% |
16. Quarterly Cons
16. Quarterly Consolidated Financial Information (unaudited) (Details) - Schedule of Quarterly Financial Information - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2014 | Dec. 04, 2014 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenue | ||||||||||||
Software licenses | $ 10,292 | $ 3,506 | $ 3,433 | $ 2,852 | $ 3,280 | $ 2,458 | $ 2,291 | $ 2,583 | $ 1,912 | $ 12,023 | $ 12,023 | $ 10,292 |
Maintenance & support | 15,033 | 3,851 | 4,326 | 4,142 | 4,093 | 4,034 | 3,790 | 3,813 | 3,579 | 16,595 | 16,595 | 15,033 |
Professional services | 1,445 | 509 | 692 | 653 | 490 | 388 | 409 | 290 | 237 | 2,223 | 2,223 | 1,445 |
Total revenues | 26,770 | 7,866 | 8,451 | 7,647 | 7,863 | 6,880 | 6,490 | 6,686 | 5,728 | 30,841 | 30,841 | 26,770 |
Cost of Revenues | ||||||||||||
Software licenses | 1,508 | 539 | 777 | 562 | 651 | 438 | 426 | 285 | 258 | 2,428 | 2,428 | 1,508 |
Maintenance & support | 1,491 | 394 | 409 | 341 | 391 | 325 | 359 | 370 | 368 | 1,466 | 1,466 | 1,491 |
Professional services | 785 | 239 | 518 | 605 | 335 | 317 | 236 | 161 | 149 | 1,775 | 1,775 | 785 |
Total cost of revenues | 3,784 | 1,172 | 1,704 | 1,508 | 1,377 | 1,080 | 1,021 | 816 | 775 | 5,669 | 5,669 | 3,784 |
Gross profit | 22,986 | 6,694 | 6,747 | 6,139 | 6,486 | 5,800 | 5,469 | 5,870 | 4,953 | 25,172 | 25,172 | 22,986 |
Operating Expenses | ||||||||||||
Sales and marketing | 10,012 | 2,797 | 2,965 | 2,289 | 2,476 | 2,295 | 2,391 | 2,740 | 2,084 | 10,025 | 10,025 | 10,012 |
General and administrative | 6,176 | 1,671 | 1,539 | 1,449 | 1,457 | 1,723 | 1,301 | 1,668 | 1,536 | 6,168 | 6,168 | 6,176 |
Research and development | 2,183 | 455 | 730 | 646 | 657 | 529 | 513 | 689 | 526 | 2,562 | 2,562 | 2,183 |
Total operating expenses | 18,371 | 4,923 | 5,234 | 4,384 | 4,590 | 4,547 | 4,205 | 5,097 | 4,146 | 18,755 | 18,755 | 18,371 |
Income from operations | 4,615 | 1,771 | 1,513 | 1,755 | 1,896 | 1,253 | 1,264 | 773 | 807 | 6,417 | 6,417 | 4,615 |
Other income (expense) | (42) | 16 | 27 | 17 | 23 | 11 | (11) | (27) | (20) | 78 | ||
Net income before provision for income taxes | 4,573 | 1,787 | 1,540 | 1,772 | 1,919 | 1,264 | 1,253 | 746 | 787 | 6,495 | 6,495 | 4,573 |
Income tax expense | 1,547 | 565 | 312 | 542 | 594 | 449 | 471 | 258 | 253 | 1,897 | 1,897 | 1,547 |
Net income | $ 3,026 | $ 1,222 | $ 1,228 | $ 1,230 | $ 1,325 | $ 815 | $ 782 | $ 488 | $ 534 | $ 4,598 | $ 4,598 | $ 3,026 |
Net income per share: | ||||||||||||
Basic (in Dollars per share) | $ 0.15 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.04 | $ 0.04 | $ 0.02 | $ 0.03 | $ 0.22 | $ 0.22 | $ 0.15 |
Diluted (in Dollars per share) | $ 0.15 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.04 | $ 0.04 | $ 0.02 | $ 0.03 | $ 0.22 | $ 0.22 | $ 0.15 |
Weighted average shares outstanding | ||||||||||||
Basic (in Shares) | 20,163 | 20,487 | 20,949 | 20,892 | 20,804 | 20,647 | 20,487 | 20,071 | 19,534 | 20,824 | 20,824 | 20,163 |
Diluted (in Shares) | 20,693 | 20,859 | 21,562 | 21,440 | 21,324 | 21,099 | 20,890 | 20,622 | 20,394 | 21,366 | 21,366 | 20,693 |