Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 28, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | GLOBALSCAPE INC | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 21,037,496 | |
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 | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets Unaudited - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 16,324 | $ 15,885 |
Short term investments | 3,270 | 3,254 |
Accounts receivable (net of allowance for doubtful accounts of $356 and $325 in 2016 and 2015, respectively) | 5,340 | 6,081 |
Federal income tax receivable | 35 | 290 |
Prepaid expenses | 477 | 511 |
Total current assets | 25,446 | 26,021 |
Fixed assets, net | 517 | 498 |
Capitalized software development costs | 4,040 | 3,982 |
Goodwill | 12,712 | 12,712 |
Deferred tax asset | 959 | 940 |
Other assets | 38 | 60 |
Total assets | 43,712 | 44,213 |
Current liabilities: | ||
Accounts payable | 489 | 839 |
Accrued expenses | 1,621 | 1,893 |
Deferred revenue | 11,672 | 12,000 |
Income taxes payable | 34 | 127 |
Total current liabilities | 13,816 | 14,859 |
Deferred revenue, non-current portion | 3,718 | 3,612 |
Other long term liabilities | $ 41 | $ 44 |
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, 21,436,927 and 21,383,467 shares issued at March 31, 2016, and December 31, 2015, respectively | 21 | 21 |
Additional paid-in capital | 19,930 | 19,583 |
Treasury stock, 403,581 shares, at cost, at March 31, 2016 and December 31, 2015 | (1,452) | (1,452) |
Retained earnings | 7,638 | 7,546 |
Total stockholders’ equity | 26,137 | 25,698 |
Total liabilities and stockholders’ equity | $ 43,712 | $ 44,213 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets Unaudited (Parentheticals) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Accounts receivable, allowance for doubtful accounts (in Dollars) | $ 356 | $ 325 |
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 | 21,436,927 | 21,383,467 |
Treasury stock, shares | 403,581 | 403,581 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Operating Revenues: | ||
Software licenses | $ 2,299 | $ 2,458 |
Maintenance and support | 4,497 | 4,034 |
Professional services | 614 | 388 |
Total Revenues | 7,410 | 6,880 |
Cost of revenues | ||
Software licenses | 630 | 438 |
Maintenance and support | 394 | 325 |
Professional services | 569 | 317 |
Total cost of revenues | 1,593 | 1,080 |
Gross profit | 5,817 | 5,800 |
Operating expenses | ||
Sales and marketing | 2,901 | 2,295 |
General and administrative | 1,733 | 1,723 |
Research and development | 627 | 529 |
Total operating expenses | 5,261 | 4,547 |
Income from operations | 556 | 1,253 |
Other income (expense), net | 33 | 11 |
Income before income taxes | 589 | 1,264 |
Income tax expense | 182 | 449 |
Net income | 407 | 815 |
Comprehensive income | $ 407 | $ 815 |
Net income per common share - | ||
Basic (in Dollars per share) | $ 0.02 | $ 0.04 |
Diluted (in Dollars per share) | $ 0.02 | $ 0.04 |
Weighted average shares outstanding: | ||
Basic (in Shares) | 21,033 | 20,647 |
Diluted (in Shares) | 21,652 | 21,099 |
Cash dividends declared per share (in Dollars per share) | $ 0.015 | $ 0.015 |
Condensed Consolidated Stateme5
Condensed Consolidated Statement of Stockholders' Equity (Unaudited) - 3 months ended Mar. 31, 2016 - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Total |
Balances at Dec. 31, 2015 | $ 21 | $ 19,583 | $ (1,452) | $ 7,546 | $ 25,698 |
Balances (in Shares) at Dec. 31, 2015 | 21,383,467 | ||||
Shares issued as a result of: | |||||
Stock options exercised | 122 | $ 122 | |||
Stock options exercised (in Shares) | 53,460 | 53,460 | |||
Stock-based compensation expense: | |||||
Stock options | 156 | $ 156 | |||
Restricted stock | 66 | 66 | |||
Net increase in excess tax benefit from stock-based compensation | 3 | 3 | |||
Common stock cash dividends of $0.015 per share | (315) | (315) | |||
Net income | 407 | 407 | |||
Balances at Mar. 31, 2016 | $ 21 | $ 19,930 | $ (1,452) | $ 7,638 | $ 26,137 |
Balances (in Shares) at Mar. 31, 2016 | 21,436,927 |
Condensed Consolidated Stateme6
Condensed Consolidated Statement of Stockholders' Equity (Unaudited) (Parentheticals) | 3 Months Ended |
Mar. 31, 2016$ / shares | |
Common stock cash dividends per share | $ 0.015 |
Retained Earnings [Member] | |
Common stock cash dividends per share | $ 0.015 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Operating Activities: | ||
Net income | $ 407 | $ 815 |
Items not involving cash at the time they are recorded in the statement of operations: | ||
Bad debt expense | 43 | 87 |
Depreciation and amortization | 501 | 288 |
Share-based compensation | 222 | 148 |
Deferred taxes | (19) | 78 |
Excess tax benefit from share-based compensation | (3) | (9) |
Subtotal before changes in operating assets and liabilities | 1,151 | 1,407 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 698 | 1,136 |
Prepaid expenses | 34 | 110 |
Deferred revenue | (222) | (532) |
Accounts payable | (350) | (556) |
Accrued expenses | (272) | (306) |
Other Assets | 22 | 0 |
Other long-term liabilities | (3) | (1) |
Income tax receivable and payable | 165 | 189 |
Net cash provided by operating activities | 1,223 | 1,447 |
Investing Activities: | ||
Software development costs capitalized | (488) | (691) |
Purchase of property and equipment | (90) | (52) |
Interest reinvested in long term investments | (16) | (16) |
Net cash (used in) investing activities | (594) | (759) |
Financing Activities: | ||
Proceeds from exercise of stock options | 122 | 290 |
Excess tax benefit from share-based compensation | 3 | 9 |
Dividends paid | (315) | 0 |
Net cash provided by (used in) financing activities | (190) | 299 |
Net increase in cash | 439 | 987 |
Cash at beginning of period | 15,885 | 11,358 |
Cash at end of period | 16,324 | 12,345 |
Cash paid during the period for: | ||
Interest | 0 | 0 |
Income taxes | $ 22 | $ 174 |
1. Nature of Business
1. Nature of Business | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure Text Block [Abstract] | |
Nature of Operations [Text Block] | 1. Nature of Business We provide secure information exchange capabilities for enterprises and consumers through the development and distribution of software, delivery of cloud-based software-as-a service (SaaS) 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. Throughout these notes unless otherwise noted, our references to the 2016 quarter and the 2015 quarter refer to the three months ended March 31, 2016 and 2015, respectively. |
2. Basis of Presentation
2. Basis of Presentation | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure Text Block [Abstract] | |
Basis of Accounting [Text Block] | 2. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with Rule 10-01 of Regulation S-X, “Interim Financial Statements”, as prescribed by the Securities and Exchange Commission, or SEC. Accordingly, they do not include all information and footnotes required under generally accepted accounting principles in the United States, or GAAP, for complete financial statements. In the opinion of management, all accounting entries necessary for a fair presentation of our financial position and results of operations have been made. The results of operations for any interim period are not necessarily indicative of the results to be expected for the full year. The information included in this Form 10-Q should be read in conjunction with the financial statements and the notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2015, which we refer to as the 2015 Form 10-K, as well as Management’s Discussion and Analysis of Financial Condition and Results of Operations We follow accounting standards set by the Financial Accounting Standards Board. This board sets generally accepted accounting principles in the United States, or GAAP, that we follow in preparing financial statements that report our financial position, results of operations, and sources and uses of cash. We also follow the reporting regulations of the United States Securities and Exchange Commission, or SEC. The preparation of financial statements in accordance with GAAP requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities known to exist as of the date the financial statements are published, and the reported amounts of revenues and expenses during the reporting period. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of our financial statements. It is possible the actual results could differ from these estimates and assumptions and could have a material effect on the reported amounts of our financial position and results of operations. |
3. Significant Accounting Polic
3. Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | 3. Significant Accounting Policies Principles of Consolidation The accompanying consolidated financial statements of GlobalSCAPE, Inc. and its wholly-owned subsidiary (collectively referred to as the “Company” or “we”) are prepared in conformity with GAAP. All intercompany accounts and transactions have been eliminated. Revenue Recognition We develop, market and sell software products. We recognize revenue from a sale transaction when the following conditions are met: · Persuasive evidence of an arrangement exists. · Delivery has occurred or services have been rendered. · The amount 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 In preparing our financial statements for the year ended December 31, 2015, we revised the manner in which we present cost of revenues and other elements of our statement of operations in response to the changing nature of our business and the resulting differences in the scope and nature of certain expenses we incur. Cost of Revenue Cost of revenue was expanded from one line to three lines to correspond with the associated revenue classifications. Amortization of capitalized software development costs was moved from depreciation and amortization and included in the cost of license revenue. Other costs included in cost of license revenue are royalties we pay to use technology in our products that is developed by others and fees paid to third party service providers who support our cloud based and SaaS solutions. Cost of M&S revenue and cost of professional services revenue consist primarily of salaries and related personnel costs of our employees who deliver the related service to our clients. These costs were previously included in the general and administrative classification. Also included in the cost of professional services revenue are the fees of third party service providers. Selling, General and Administrative We separated selling, general and administrative expenses into two line items – sales and marketing and general and administrative. Depreciation and Amortization After reclassifying amortization of capitalized software development costs to cost of license revenue, the remaining depreciation and amortization costs were included in general and administrative expense and the depreciation and amortization line on our statement of operations was removed. Effect of the reclassifications The reclassifications were between cost of revenues and operating expenses and had no effect on revenue, income from operations, net income or earnings per share. The following table illustrates the effects of these reclassifications on previously reported amounts for the quarter ended March 31, 2015 ($ in thousands): Quarter Ended March 31, 2015 Reclassification of Previously Reported Amounts As Cost Capitalized Personnel Depreciation Selling, As Operating Revenues: Software licenses $ 2,458 $ 2,458 Maintenance and support 4,034 4,034 Professional services 388 388 Total revenues 6,880 6,880 Cost of Revenues: Software licenses 220 218 438 Maintenance and support 325 325 Professional services 28 289 317 Total cost of revenues - 1,080 Gross profit - 5,800 Operating Expenses Sales and marketing - 2,295 2,295 General and administrative - 1,723 1,723 Cost of Revenues 248 (248 ) - Selling, general and administrative 4,578 (630 ) 70 (4,018 ) - Research and development 513 16 529 Depreciation and amortization 288 (218 ) (70 ) - Total operating expenses 5,627 4,547 Income from operations 1,253 1,253 Other income (expense), net 11 11 Income before income taxes 1,264 1,264 Income tax expense 449 449 Net income $ 815 $ 815 Comprehensive income $ 815 $ 815 Net income per common share - Basic $ 0.04 $ 0.04 Diluted $ 0.04 $ 0.04 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 the 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 the 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 $407,441 and $376,326 in the 2016 quarter and the 2015 quarter, 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 March 2016, the Financial Accounting Standards Board, or FASB, issued Accounting Standard Update (ASU) 2016-09, Improvements to Employee Share-Based Payment Accounting In February 2016, the FASB issued ASU 2016-02, Leases In November 2015, the FASB, issued ASU No. 2015-17, Income Tax: Balance Sheet Classification of Deferred Taxes In May 2014, FASB issued ASU 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. |
4. Capitalized Software Develop
4. Capitalized Software Development Costs | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure Text Block [Abstract] | |
Intangible Assets Disclosure [Text Block] | 4. Capitalized Software Development Costs Our capitalized software development costs profile was as follows: ($ in thousands): March 31, December 31, 2016 2015 Gross capitalized cost $ 6,202 $ 5,714 Accumulated amortization (2,162 ) (1,732 ) Net balance $ 4,040 $ 3,982 Three Months Ended March 31, 2016 2015 Amount capitalized $ 488 $ 691 Amortization expense 430 218 Released Unreleased Products Products Gross capitalized amount at March 31, 2016 $ 5,311 $ 891 Future amortization expense: Nine months ending December 31, 2016 1,271 Year ending December 31, 2017 1,303 2018 570 2019 5 Total $ 3,149 The future amortization expense of the gross capitalized software development costs related to unreleased products will be determinable at a future date when those products are ready for general release to the public. |
5. Stock Options, Restricted St
5. Stock Options, Restricted Stock and Share-Based Compensation | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 5. Stock Options, Restricted Stock and Share-Based Compensation We have stock-based compensation plans under which we have granted, and may grant in the future, incentive stock options, non-qualified stock options, and restricted stock to employees and non-employee members of the Board of Directors. Our share-based compensation expense was as follows ($ in thousands): Three Months Ended March 31, 2016 2015 Share-based compensation expense $ 222 $ 148 Stock Options The GlobalSCAPE, Inc. 2010 Employee Long-Term Equity Incentive Plan is our current stock-based incentive plan for our employees. Provisions and characteristics of this plan include the following: · It authorizes the issuance of up to three million shares of common stock for stock-based incentives including stock options and restricted stock awards. · The exercise price, term and other conditions applicable to each stock option or stock award granted are determined by the Compensation Committee of the Board of Directors. · The exercise price of stock options is set on the grant date and may not be less than the fair market value per share of our stock at market close on that date. · Stock options we issue generally become exercisable ratably over a three-year period and expire ten years from the date of grant. · We issued no restricted stock awards under this plan during the 2016 or 2015 periods. · As of March 31, 2016, stock-based incentives for up to 297,720 shares remained available for issuance in the future under this plan. Our stock option activity has been as follows: Weighted Average Weighted Average Aggregate Exercise Remaining Intrinsic Number of Price Contractual Value Shares Per Share Term in Years (000's) Outstanding at December 31, 2015 2,091,325 $ 2.45 6.09 $ 3,277 Granted 667,300 $ 3.58 Forfeited (39,430 ) $ 2.86 Exercised (53,460 ) $ 2.28 Outstanding at March 31, 2016 2,665,735 $ 2.73 6.85 $ 2,911 Exercisable at March 31, 2016 1,432,475 $ 2.28 4.75 $ 2,214 Additional information about our stock options is as follows: Three Months Ended March 31, 2016 2015 Weighted average fair value of options granted $ 1.65 $ 1.38 Intrinsic value of options exercised $ 71,745 $ 255,116 Cash received from stock options exercised $ 121,671 $ 289,566 Number of options that vested 193,866 130,654 Fair value of options that vested $ 248,148 $ 150,114 Unrecognized compensation expense related to non-vested options at end of period $ 1,673,156 $ 916,372 Weighted average years over which non-vested option expense will be recognized 2.5 2.3 As of March 31, 2016 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 $ 0.85 - $1.43 204,350 3.66 $ 1.14 204,350 $ 1.14 $ 1.47 - $2.27 644,495 5.69 $ 1.80 570,035 $ 1.83 $ 2.32 - $3.50 1,040,590 6.97 $ 2.90 528,090 $ 2.77 $ 3.52 - $4.21 776,300 8.49 $ 3.69 130,000 $ 4.10 Total options 2,665,735 1,432,475 We used the following assumptions to determine compensation expense for our stock options using the Black-Scholes option-pricing model: Three Months Ended March 31, 2016 2015 Expected volatility 56 % 57 % Expected annual dividend yield 1.50 % 2.40 % Risk free rate of return 1.53 % 1.58 % Expected option term (years) 6.00 6.00 Based upon our dividend payment activity in recent years, beginning with the first quarter of 2015, we added an expected annual dividend yield to these assumptions. Restricted Stock Awards In May 2015, we adopted the 2015 Non-Employee Directors Long Term Incentive Plan (“2015 Directors Plan”). This plan provides for the issuance of either stock options or restricted stock awards for up to 500,000 shares of our common stock. Provisions and characteristics of this plan include the following: · The exercise price, term and other conditions applicable to each stock option or stock award granted are determined by the Compensation Committee of the Board of Directors. · Restricted stock awards are initially issued with a legend restricting transferability of the shares until the recipient satisfies the vesting provision of the award, which is generally continuing service for one year subsequent to the date of the award. · As of March 31, 2016, 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, 2015 80,000 $ 3.34 Shares granted with restrictions - $ - Shares vested and restrictions removed - $ - Restricted Shares Outstanding at March 31, 2016 80,000 $ 3.34 Unrecognized compensation expense for non-vested shares as of March 31,2016 Expense to be recognized in future periods $ 32,035 Weighted average number of months over which expense is expected to be recognized 1.44 We have not issued any stock options under the 2015 Directors Plan. The 2015 Directors Plan replaced the 2006 Non-Employee Directors Long Term Incentive Plan. We will not issue any additional stock or stock options under the 2006 plan. |
6. Income Taxes
6. Income Taxes | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | 6. Income Taxes Our income tax expense reconciles to an income tax expense resulting from applying an assumed statutory federal income rate of 34% to income before income taxes as follows ($ in thousands): Three Months Ended March 31, 2016 2015 Income tax expense at federal statutory rate $ 200 $ 430 Increase (decrease) in taxes resulting from: Domestic production activities deduction (20 ) (30 ) Research and development credit (32 ) - Incentiv stock options 16 - State taxes, net of federal benefit 2 16 Increase in reserve for uncertain tax positions 6 - Other 10 33 Income tax expense per the statement of operations $ 182 $ 449 We claim the research and experimentation tax credit, or R&D tax credit, on our tax returns and have included the effect of those credits in our provisions for income taxes. The Internal Revenue Service, or IRS, has completed its routine examination of our tax returns through 2010 with their findings resulting in a larger portion of the R&D tax credit we claimed being allowed than we had previously estimated. Our tax returns for 2011 and later remain subject to examination by the IRS. We believe it more-likely-than-not that examination of those tax returns for 2011 and later could result in a portion of the R&D tax credits we claimed for those years not being allowed by the IRS. After considering the effects of these items collectively, as of March 31, 2016, we have a reserve of $96,000 against R&D tax credits claimed on our tax returns for 2011 and later due to the uncertainty of sustaining those credits. As of March 31, 2016, we had federal income tax net operating loss carry forwards of $400,000 available to offset future federal taxable income, if any. These carry forwards expire in 2030 and 2031. We have recorded a deferred tax asset for the estimated future tax benefits we believe we will realize from the application of these carryforwards against future taxable income. We have a capital loss carryforward of $3.2 million available for use through 2017 to offset future capital gains for federal income tax purposes. We also have approximately $124,000 of research and development activities tax credits available to offset future Texas franchise tax expense through 2037. We have not recorded a deferred tax asset for these carryforwards due to the uncertainty of the whether or not we will have items in our tax computations in future periods against which to apply these carryforwards. |
7. Earnings per Common Share
7. Earnings per Common Share | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | 7. Earnings per Common Share Earnings per share for the periods indicated were as follows (in thousands, except per share amounts): Three Months Ended March 31, 2016 2015 Net income $ 407 $ 815 Weighted average shares outstanding - basic 21,033 20,647 Stock options 619 452 Weighted average shares outstanding - diluted 21,652 21,099 Net income per common share - basic $ 0.02 $ 0.04 Net income per common share - diluted $ 0.02 $ 0.04 |
8. Dividends
8. Dividends | 3 Months Ended |
Mar. 31, 2016 | |
Dividends [Abstract] | |
Dividends [Text Block] | 8. Dividends During 2016, our Board of Directors declared quarterly dividends as follows: March 31, 2016 Dividend per share of common stock $ 0.015 Dividend record date February 23, 2016 Dividend payment date March 3, 2016 |
9. Commitments and Contingencie
9. Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2016 | |
Loss Contingency [Abstract] | |
Contingencies Disclosure [Text Block] | 9. Commitments and Contingencies We have agreements with key personnel that provide for severance payments to them in the event of a change in control of the Company, as defined in those agreements, and their employment is terminated in connection with that change in control. In such event, our aggregate severance payments to those employees would be $1.2 million. |
10. Concentration of Business V
10. Concentration of Business Volume and Credit Risk | 3 Months Ended |
Mar. 31, 2016 | |
Risks and Uncertainties [Abstract] | |
Concentration Risk Disclosure [Text Block] | 10. Concentration of Business Volume and Credit Risk 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 the 2016 quarter and 2015 quarter, we earned approximately 14% and 10%, respectively, of our revenue from such sales through our largest, third party, channel reseller. Approximately 17% of our accounts receivable as of March 31, 2016, were due from this customer with payment for substantially all such amounts having been received subsequent to that date. |
11. Segment and Geographic Disc
11. Segment and Geographic Disclosures | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | 11. Segment and Geographic Disclosures Revenues derived from customers and partners located in the United States accounted for approximately 73% of the Company’s total revenues in both the 2016 and 2015 quarter. The remaining revenues were from customers and partners located in foreign countries with each individual foreign country accounting for less than 10% of total revenues in both the 2016 quarter and the 2015 quarter. 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 March 31, 2016 and 2015. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation The accompanying consolidated financial statements of GlobalSCAPE, Inc. and its wholly-owned subsidiary (collectively referred to as the “Company” or “we”) are prepared in conformity with GAAP. All intercompany accounts and transactions have been eliminated. |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition We develop, market and sell software products. We recognize revenue from a sale transaction when the following conditions are met: · Persuasive evidence of an arrangement exists. · Delivery has occurred or services have been rendered. · The amount 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 In preparing our financial statements for the year ended December 31, 2015, we revised the manner in which we present cost of revenues and other elements of our statement of operations in response to the changing nature of our business and the resulting differences in the scope and nature of certain expenses we incur. Cost of Revenue Cost of revenue was expanded from one line to three lines to correspond with the associated revenue classifications. Amortization of capitalized software development costs was moved from depreciation and amortization and included in the cost of license revenue. Other costs included in cost of license revenue are royalties we pay to use technology in our products that is developed by others and fees paid to third party service providers who support our cloud based and SaaS solutions. Cost of M&S revenue and cost of professional services revenue consist primarily of salaries and related personnel costs of our employees who deliver the related service to our clients. These costs were previously included in the general and administrative classification. Also included in the cost of professional services revenue are the fees of third party service providers. Selling, General and Administrative We separated selling, general and administrative expenses into two line items – sales and marketing and general and administrative. Depreciation and Amortization After reclassifying amortization of capitalized software development costs to cost of license revenue, the remaining depreciation and amortization costs were included in general and administrative expense and the depreciation and amortization line on our statement of operations was removed. Effect of the reclassifications The reclassifications were between cost of revenues and operating expenses and had no effect on revenue, income from operations, net income or earnings per share. The following table illustrates the effects of these reclassifications on previously reported amounts for the quarter ended March 31, 2015 ($ in thousands): Quarter Ended March 31, 2015 Reclassification of Previously Reported Amounts As Cost Capitalized Personnel Depreciation Selling, As Operating Revenues: Software licenses $ 2,458 $ 2,458 Maintenance and support 4,034 4,034 Professional services 388 388 Total revenues 6,880 6,880 Cost of Revenues: Software licenses 220 218 438 Maintenance and support 325 325 Professional services 28 289 317 Total cost of revenues - 1,080 Gross profit - 5,800 Operating Expenses Sales and marketing - 2,295 2,295 General and administrative - 1,723 1,723 Cost of Revenues 248 (248 ) - Selling, general and administrative 4,578 (630 ) 70 (4,018 ) - Research and development 513 16 529 Depreciation and amortization 288 (218 ) (70 ) - Total operating expenses 5,627 4,547 Income from operations 1,253 1,253 Other income (expense), net 11 11 Income before income taxes 1,264 1,264 Income tax expense 449 449 Net income $ 815 $ 815 Comprehensive income $ 815 $ 815 Net income per common share - Basic $ 0.04 $ 0.04 Diluted $ 0.04 $ 0.04 |
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 the 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 the 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 $407,441 and $376,326 in the 2016 quarter and the 2015 quarter, 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 March 2016, the Financial Accounting Standards Board, or FASB, issued Accounting Standard Update (ASU) 2016-09, Improvements to Employee Share-Based Payment Accounting In February 2016, the FASB issued ASU 2016-02, Leases In November 2015, the FASB, issued ASU No. 2015-17, Income Tax: Balance Sheet Classification of Deferred Taxes In May 2014, FASB issued ASU 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. |
3. Significant Accounting Pol20
3. Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Schedule of Reclassification Adjustments [Table Text Block] | The reclassifications were between cost of revenues and operating expenses and had no effect on revenue, income from operations, net income or earnings per share. The following table illustrates the effects of these reclassifications on previously reported amounts for the quarter ended March 31, 2015 ($ in thousands): Quarter Ended March 31, 2015 Reclassification of Previously Reported Amounts As Cost Capitalized Personnel Depreciation Selling, As Operating Revenues: Software licenses $ 2,458 $ 2,458 Maintenance and support 4,034 4,034 Professional services 388 388 Total revenues 6,880 6,880 Cost of Revenues: Software licenses 220 218 438 Maintenance and support 325 325 Professional services 28 289 317 Total cost of revenues - 1,080 Gross profit - 5,800 Operating Expenses Sales and marketing - 2,295 2,295 General and administrative - 1,723 1,723 Cost of Revenues 248 (248 ) - Selling, general and administrative 4,578 (630 ) 70 (4,018 ) - Research and development 513 16 529 Depreciation and amortization 288 (218 ) (70 ) - Total operating expenses 5,627 4,547 Income from operations 1,253 1,253 Other income (expense), net 11 11 Income before income taxes 1,264 1,264 Income tax expense 449 449 Net income $ 815 $ 815 Comprehensive income $ 815 $ 815 Net income per common share - Basic $ 0.04 $ 0.04 Diluted $ 0.04 $ 0.04 |
4. Capitalized Software Devel21
4. Capitalized Software Development Costs (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure Text Block [Abstract] | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | Our capitalized software development costs profile was as follows: ($ in thousands): March 31, December 31, 2016 2015 Gross capitalized cost $ 6,202 $ 5,714 Accumulated amortization (2,162 ) (1,732 ) Net balance $ 4,040 $ 3,982 |
Finite-lived Intangible Assets Amortization Expense [Table Text Block] | Three Months Ended March 31, 2016 2015 Amount capitalized $ 488 $ 691 Amortization expense 430 218 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Table Text Block] | Released Unreleased Products Products Gross capitalized amount at March 31, 2016 $ 5,311 $ 891 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Future amortization expense: Nine months ending December 31, 2016 1,271 Year ending December 31, 2017 1,303 2018 570 2019 5 Total $ 3,149 |
5. Stock Options, Restricted 22
5. Stock Options, Restricted Stock and Share-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Table Text Block] | Our share-based compensation expense was as follows ($ in thousands): Three Months Ended March 31, 2016 2015 Share-based compensation expense $ 222 $ 148 |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Our stock option activity has been as follows: Weighted Average Weighted Average Aggregate Exercise Remaining Intrinsic Number of Price Contractual Value Shares Per Share Term in Years (000's) Outstanding at December 31, 2015 2,091,325 $ 2.45 6.09 $ 3,277 Granted 667,300 $ 3.58 Forfeited (39,430 ) $ 2.86 Exercised (53,460 ) $ 2.28 Outstanding at March 31, 2016 2,665,735 $ 2.73 6.85 $ 2,911 Exercisable at March 31, 2016 1,432,475 $ 2.28 4.75 $ 2,214 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable [Table Text Block] | Additional information about our stock options is as follows: Three Months Ended March 31, 2016 2015 Weighted average fair value of options granted $ 1.65 $ 1.38 Intrinsic value of options exercised $ 71,745 $ 255,116 Cash received from stock options exercised $ 121,671 $ 289,566 Number of options that vested 193,866 130,654 Fair value of options that vested $ 248,148 $ 150,114 Unrecognized compensation expense related to non-vested options at end of period $ 1,673,156 $ 916,372 Weighted average years over which non-vested option expense will be recognized 2.5 2.3 |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | As of March 31, 2016 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 $ 0.85 - $1.43 204,350 3.66 $ 1.14 204,350 $ 1.14 $ 1.47 - $2.27 644,495 5.69 $ 1.80 570,035 $ 1.83 $ 2.32 - $3.50 1,040,590 6.97 $ 2.90 528,090 $ 2.77 $ 3.52 - $4.21 776,300 8.49 $ 3.69 130,000 $ 4.10 Total options 2,665,735 1,432,475 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | We used the following assumptions to determine compensation expense for our stock options using the Black-Scholes option-pricing model: Three Months Ended March 31, 2016 2015 Expected volatility 56 % 57 % Expected annual dividend yield 1.50 % 2.40 % Risk free rate of return 1.53 % 1.58 % 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, 2015 80,000 $ 3.34 Shares granted with restrictions - $ - Shares vested and restrictions removed - $ - Restricted Shares Outstanding at March 31, 2016 80,000 $ 3.34 Unrecognized compensation expense for non-vested shares as of March 31,2016 Expense to be recognized in future periods $ 32,035 Weighted average number of months over which expense is expected to be recognized 1.44 |
6. Income Taxes (Tables)
6. Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Our income tax expense reconciles to an income tax expense resulting from applying an assumed statutory federal income rate of 34% to income before income taxes as follows ($ in thousands): Three Months Ended March 31, 2016 2015 Income tax expense at federal statutory rate $ 200 $ 430 Increase (decrease) in taxes resulting from: Domestic production activities deduction (20 ) (30 ) Research and development credit (32 ) - Incentiv stock options 16 - State taxes, net of federal benefit 2 16 Increase in reserve for uncertain tax positions 6 - Other 10 33 Income tax expense per the statement of operations $ 182 $ 449 |
7. Earnings per Common Share (T
7. Earnings per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Earnings per share for the periods indicated were as follows (in thousands, except per share amounts): Three Months Ended March 31, 2016 2015 Net income $ 407 $ 815 Weighted average shares outstanding - basic 21,033 20,647 Stock options 619 452 Weighted average shares outstanding - diluted 21,652 21,099 Net income per common share - basic $ 0.02 $ 0.04 Net income per common share - diluted $ 0.02 $ 0.04 |
8. Dividends (Tables)
8. Dividends (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Dividends [Abstract] | |
Schedule of Dividends Payable [Table Text Block] | During 2016, our Board of Directors declared quarterly dividends as follows: March 31, 2016 Dividend per share of common stock $ 0.015 Dividend record date February 23, 2016 Dividend payment date March 3, 2016 |
3. Significant Accounting Pol26
3. Significant Accounting Policies (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
3. Significant Accounting Policies (Details) [Line Items] | |||
Goodwill, Impairment Loss (in Dollars) | $ 0 | ||
Advertising Expense (in Dollars) | $ 407,441 | $ 376,326 | |
Probability of occurrence of event | 50.00% | ||
Computer Equipment [Member] | |||
3. Significant Accounting Policies (Details) [Line Items] | |||
Property, Plant and Equipment, Useful Life | 3 years | ||
Software and Software Development Costs [Member] | |||
3. Significant Accounting Policies (Details) [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 3 years | ||
Minimum [Member] | Furniture and Fixtures [Member] | |||
3. Significant Accounting Policies (Details) [Line Items] | |||
Property, Plant and Equipment, Useful Life | 5 years | ||
Maximum [Member] | Furniture and Fixtures [Member] | |||
3. Significant Accounting Policies (Details) [Line Items] | |||
Property, Plant and Equipment, Useful Life | 7 years |
3. Significant Accounting Poli
3. Significant Accounting Policies (Details) - Schedule of Reclassification Adjustments - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Operating Revenues: | ||
Software licenses | $ 2,299 | $ 2,458 |
Maintenance and support | 4,497 | 4,034 |
Professional services | 614 | 388 |
Total revenues | 7,410 | 6,880 |
Cost of Revenues: | ||
Software licenses | 630 | 438 |
Maintenance and support | 394 | 325 |
Professional services | 569 | 317 |
Total cost of revenues | 1,593 | 1,080 |
Gross profit | 5,817 | 5,800 |
Operating Expenses | ||
Sales and marketing | 2,901 | 2,295 |
General and administrative | 1,733 | 1,723 |
Research and development | 627 | 529 |
Depreciation and amortization | 501 | 288 |
Income from operations | 556 | 1,253 |
Other income (expense), net | 33 | 11 |
Income before income taxes | 589 | 1,264 |
Income tax expense | 182 | 449 |
Net income | 407 | 815 |
Comprehensive income | $ 407 | $ 815 |
Net income per common share - | ||
Basic (in Dollars per share) | $ 0.02 | $ 0.04 |
Diluted (in Dollars per share) | $ 0.02 | $ 0.04 |
Scenario, Previously Reported [Member] | ||
Operating Revenues: | ||
Software licenses | $ 2,458 | |
Maintenance and support | 4,034 | |
Professional services | 388 | |
Total revenues | 6,880 | |
Cost of Revenues: | ||
Total cost of revenues | 0 | |
Gross profit | 0 | |
Operating Expenses | ||
Sales and marketing | 0 | |
General and administrative | 0 | |
Cost of Revenues | 248 | |
Selling, general and administrative | 4,578 | |
Research and development | 513 | |
Depreciation and amortization | 288 | |
Total operating expenses | 5,627 | |
Income from operations | 1,253 | |
Other income (expense), net | 11 | |
Income before income taxes | 1,264 | |
Income tax expense | 449 | |
Net income | 815 | |
Comprehensive income | $ 815 | |
Net income per common share - | ||
Basic (in Dollars per share) | $ 0.04 | |
Diluted (in Dollars per share) | $ 0.04 | |
Restatement Adjustment [Member] | Cost of Sales [Member] | ||
Cost of Revenues: | ||
Software licenses | $ 220 | |
Professional services | 28 | |
Operating Expenses | ||
Cost of Revenues | (248) | |
Comprehensive income | 0 | |
Restatement Adjustment [Member] | Capitalized Software Cost Amortization [Member] | ||
Cost of Revenues: | ||
Software licenses | 218 | |
Operating Expenses | ||
Depreciation and amortization | (218) | |
Comprehensive income | 0 | |
Restatement Adjustment [Member] | Personnel Costs [Member] | ||
Cost of Revenues: | ||
Maintenance and support | 325 | |
Professional services | 289 | |
Operating Expenses | ||
Selling, general and administrative | (630) | |
Research and development | 16 | |
Comprehensive income | 0 | |
Restatement Adjustment [Member] | Depreciation [Member] | ||
Cost of Revenues: | ||
Total cost of revenues | 0 | |
Operating Expenses | ||
Selling, general and administrative | 70 | |
Depreciation and amortization | (70) | |
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 | 2,295 | |
General and administrative | 1,723 | |
Selling, general and administrative | (4,018) | |
Comprehensive income | 0 | |
Scenario, Actual [Member] | ||
Operating Revenues: | ||
Software licenses | 2,458 | |
Maintenance and support | 4,034 | |
Professional services | 388 | |
Total revenues | 6,880 | |
Cost of Revenues: | ||
Software licenses | 438 | |
Maintenance and support | 325 | |
Professional services | 317 | |
Total cost of revenues | 1,080 | |
Gross profit | 5,800 | |
Operating Expenses | ||
Sales and marketing | 2,295 | |
General and administrative | 1,723 | |
Cost of Revenues | 0 | |
Selling, general and administrative | 0 | |
Research and development | 529 | |
Depreciation and amortization | 0 | |
Total operating expenses | 4,547 | |
Income from operations | 1,253 | |
Other income (expense), net | 11 | |
Income before income taxes | 1,264 | |
Income tax expense | 449 | |
Net income | 815 | |
Comprehensive income | $ 815 | |
Net income per common share - | ||
Basic (in Dollars per share) | $ 0.04 | |
Diluted (in Dollars per share) | $ 0.04 |
4. Capitalized Software Develo
4. Capitalized Software Development Costs (Details) - Schedule of Finite-Lived Intangible Assets - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Schedule of Finite-Lived Intangible Assets [Abstract] | ||
Gross capitalized cost | $ 6,202 | $ 5,714 |
Accumulated amortization | (2,162) | (1,732) |
Net balance | $ 4,040 | $ 3,982 |
4. Capitalized Software Deve29
4. Capitalized Software Development Costs (Details) - Finite-lived Intangible Assets Amortization Expense - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Finite-lived Intangible Assets Amortization Expense [Abstract] | ||
Amount capitalized | $ 488 | $ 691 |
Amortization expense | $ 430 | $ 218 |
4. Capitalized Software Deve30
4. Capitalized Software Development Costs (Details) - Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
4. Capitalized Software Development Costs (Details) - Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Line Items] | ||
Gross capitalized amount at March 31, 2016 | $ 6,202 | $ 5,714 |
Computer Software, Intangible Asset [Member] | Released Products [Member] | ||
4. Capitalized Software Development Costs (Details) - Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Line Items] | ||
Gross capitalized amount at March 31, 2016 | 5,311 | |
Computer Software, Intangible Asset [Member] | Unreleased Products [Member] | ||
4. Capitalized Software Development Costs (Details) - Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Line Items] | ||
Gross capitalized amount at March 31, 2016 | $ 891 |
4. Capitalized Software Deve31
4. Capitalized Software Development Costs (Details) - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense $ in Thousands | Mar. 31, 2016USD ($) |
Future amortization expense: | |
Nine months ending December 31, 2016 | $ 1,271 |
Year ending December 31, | |
2,017 | 1,303 |
2,018 | 570 |
2,019 | 5 |
Total | $ 3,149 |
5. Stock Options, Restricted 32
5. Stock Options, Restricted Stock and Share-Based Compensation (Details) - shares | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
2010 Employee Long-Term Equity Incentive Plan [Member] | ||
5. Stock Options, Restricted Stock and Share-Based Compensation (Details) [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 3,000,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 297,720 | |
2015 Directors Plan [Member] | ||
5. Stock Options, Restricted Stock and Share-Based Compensation (Details) [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 500,000 | |
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] | ||
5. 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] | 2010 Employee Long-Term Equity Incentive Plan [Member] | ||
5. Stock Options, Restricted Stock and Share-Based Compensation (Details) [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | 0 | 0 |
Restricted Stock [Member] | 2015 Directors Plan [Member] | ||
5. Stock Options, Restricted Stock and Share-Based Compensation (Details) [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period | 1 year |
5. Stock Options, Restricted S
5. 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 | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Abstract] | ||
Share-based compensation expense | $ 222 | $ 148 |
5. Stock Options, Restricted34
5. Stock Options, Restricted Stock and Share-Based Compensation (Details) - Schedule of Share-based Compensation, Stock Options, Activity - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Schedule of Share-based Compensation, Stock Options, Activity [Abstract] | ||
Number of Shares, Outstanding | 2,665,735 | 2,091,325 |
Weighted Average Exercise Price, Outstanding | $ 2.73 | $ 2.45 |
Weighted Average Remaining Contractual Term, Outstanding | 6 years 310 days | 6 years 32 days |
Aggregate Intrinsic Value, Outstanding | $ 2,911 | $ 3,277 |
Granted | 667,300 | |
Granted | $ 3.58 | |
Forfeited | (39,430) | |
Forfeited | $ 2.86 | |
Exercised | (53,460) | |
Exercised | $ 2.28 | |
Exercisable at March 31, 2016 | 1,432,475 | |
Exercisable at March 31, 2016 | $ 2.28 | |
Exercisable at March 31, 2016 | 4 years 9 months | |
Exercisable at March 31, 2016 | $ 2,214 |
5. Stock Options, Restricted35
5. 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 ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
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 (in Dollars per share) | $ 1.65 | $ 1.38 |
Intrinsic value of options exercised | $ 71,745 | $ 255,116 |
Cash received from stock options exercised | $ 121,671 | $ 289,566 |
Number of options that vested (in Shares) | 193,866 | 130,654 |
Fair value of options that vested | $ 248,148 | $ 150,114 |
Unrecognized compensation expense related to non-vested options at end of period | $ 1,673,156 | $ 916,372 |
Weighted average years over which non-vested option expense will be recognized | 2 years 6 months | 2 years 109 days |
5. Stock Options, Restricted36
5. Stock Options, Restricted Stock and Share-Based Compensation (Details) - Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range | 3 Months Ended |
Mar. 31, 2016$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Underlying Shares, Options Outstanding (in Shares) | shares | 2,665,735 |
Underlying Shares, Options Exercisable (in Shares) | shares | 1,432,475 |
$0.85 - $1.43 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Lower Limit | $ 0.85 |
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 240 days |
Weighted Average Exercise Price, Options Outstanding | $ 1.14 |
Underlying Shares, Options Exercisable (in Shares) | shares | 204,350 |
Weighted Average Exercise Price, Options Exercisable | $ 1.14 |
$1.47 - $2.27 [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 | $ 2.27 |
Underlying Shares, Options Outstanding (in Shares) | shares | 644,495 |
Weighted Average Remaining Contractual Life, Options Outstanding | 5 years 251 days |
Weighted Average Exercise Price, Options Outstanding | $ 1.80 |
Underlying Shares, Options Exercisable (in Shares) | shares | 570,035 |
Weighted Average Exercise Price, Options Exercisable | $ 1.83 |
$2.32 - $3.50 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Lower Limit | 2.32 |
Range of Exercise Prices, Upper Limit | $ 3.50 |
Underlying Shares, Options Outstanding (in Shares) | shares | 1,040,590 |
Weighted Average Remaining Contractual Life, Options Outstanding | 6 years 354 days |
Weighted Average Exercise Price, Options Outstanding | $ 2.90 |
Underlying Shares, Options Exercisable (in Shares) | shares | 528,090 |
Weighted Average Exercise Price, Options Exercisable | $ 2.77 |
$3.52 - $4.21 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Lower Limit | 3.52 |
Range of Exercise Prices, Upper Limit | $ 4.21 |
Underlying Shares, Options Outstanding (in Shares) | shares | 776,300 |
Weighted Average Remaining Contractual Life, Options Outstanding | 8 years 178 days |
Weighted Average Exercise Price, Options Outstanding | $ 3.69 |
Underlying Shares, Options Exercisable (in Shares) | shares | 130,000 |
Weighted Average Exercise Price, Options Exercisable | $ 4.10 |
5. Stock Options, Restricted37
5. Stock Options, Restricted Stock and Share-Based Compensation (Details) - Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Abstract] | ||
Expected volatility | 56.00% | 57.00% |
Expected annual dividend yield | 1.50% | 2.40% |
Risk free rate of return | 1.53% | 1.58% |
Expected option term (years) | 6 years | 6 years |
5. Stock Options, Restricted38
5. Stock Options, Restricted Stock and Share-Based Compensation (Details) - Nonvested Restricted Stock Shares Activity - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Unrecognized compensation expense for non-vested shares as of March 31,2016 | ||
Weighted average number of months over which expense is expected to be recognized | 2 years 6 months | 2 years 109 days |
Restricted Stock [Member] | ||
5. Stock Options, Restricted Stock and Share-Based Compensation (Details) - Nonvested Restricted Stock Shares Activity [Line Items] | ||
Number of shares, restricted shares outstanding | 80,000 | |
Grant date fair value per share, restricted shares outstanding (in Dollars per share) | $ 3.34 | |
Unrecognized compensation expense for non-vested shares as of March 31,2016 | ||
Expense to be recognized in future periods (in Dollars) | $ 32,035 | |
Weighted average number of months over which expense is expected to be recognized | 1 year 160 days | |
Shares granted with restrictions | 0 | |
Shares vested and restrictions removed | 0 | |
Number of shares, restricted shares outstanding | 80,000 | |
Grant date fair value per share, restricted shares outstanding (in Dollars per share) | $ 3.34 |
6. Income Taxes (Details)
6. Income Taxes (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
6. Income Taxes (Details) [Line Items] | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 34.00% | 34.00% |
Unrecognized Tax Benefits | $ 96,000 | |
Federal Net Operating Loss Carryforwards Expiration Year | 2,017 | |
Deferred Tax Assets, Capital Loss Carryforwards | $ 3,200,000 | |
Tax Credit Carryforward, Amount | 124,000 | |
Domestic Tax Authority [Member] | ||
6. Income Taxes (Details) [Line Items] | ||
Operating Loss Carryforwards | $ 400,000 | |
Minimum [Member] | Domestic Tax Authority [Member] | ||
6. Income Taxes (Details) [Line Items] | ||
Federal Net Operating Loss Carryforwards Expiration Year | 2,030 | |
Maximum [Member] | Domestic Tax Authority [Member] | ||
6. Income Taxes (Details) [Line Items] | ||
Federal Net Operating Loss Carryforwards Expiration Year | 2,031 |
6. Income Taxes (Details) - Sc
6. Income Taxes (Details) - Schedule of Effective Income Tax Rate Reconciliation - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Schedule of Effective Income Tax Rate Reconciliation [Abstract] | ||
Income tax expense at federal statutory rate | $ 200 | $ 430 |
Increase (decrease) in taxes resulting from: | ||
Domestic production activities deduction | (20) | (30) |
Research and development credit | (32) | 0 |
Incentiv stock options | 16 | 0 |
State taxes, net of federal benefit | 2 | 16 |
Increase in reserve for uncertain tax positions | 6 | 0 |
Other | 10 | 33 |
Income tax expense per the statement of operations | $ 182 | $ 449 |
7. Earnings per Common Share (
7. Earnings per Common Share (Details) - Schedule of Earnings Per Share, Basic and Diluted - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Schedule of Earnings Per Share, Basic and Diluted [Abstract] | ||
Net income (in Dollars) | $ 407 | $ 815 |
Weighted average shares outstanding - basic | 21,033 | 20,647 |
Stock options | 619 | 452 |
Weighted average shares outstanding - diluted | 21,652 | 21,099 |
Net income per common share - basic (in Dollars per share) | $ 0.02 | $ 0.04 |
Net income per common share - diluted (in Dollars per share) | $ 0.02 | $ 0.04 |
8. Dividends (Details) - Sched
8. Dividends (Details) - Schedule of Dividends Payable | 3 Months Ended |
Mar. 31, 2016$ / shares | |
Schedule of Dividends Payable [Abstract] | |
Dividend per share of common stock | $ 0.015 |
Dividend record date | Feb. 23, 2016 |
Dividend payment date | Mar. 3, 2016 |
9. Commitments and Contingenc43
9. Commitments and Contingencies (Details) $ in Millions | Mar. 31, 2016USD ($) |
Loss Contingency [Abstract] | |
Other Commitment | $ 1.2 |
10. Concentration of Business44
10. Concentration of Business Volume and Credit Risk (Details) - Customer Concentration Risk [Member] | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Sales Revenue, Net [Member] | ||
10. Concentration of Business Volume and Credit Risk (Details) [Line Items] | ||
Concentration Risk, Percentage | 14.00% | 10.00% |
Accounts Receivable [Member] | ||
10. Concentration of Business Volume and Credit Risk (Details) [Line Items] | ||
Concentration Risk, Percentage | 17.00% |
11. Segment and Geographic Di45
11. Segment and Geographic Disclosures (Details) - Sales Revenue, Net [Member] - Customer Concentration Risk [Member] | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
11. Segment and Geographic Disclosures (Details) [Line Items] | ||
Concentration Risk, Percentage | 14.00% | 10.00% |
UNITED STATES | ||
11. Segment and Geographic Disclosures (Details) [Line Items] | ||
Concentration Risk, Percentage | 73.00% | 73.00% |