Globalscape (GSB) 10-Q/A 26 May 17 2017 Q1 Quarterly report (amended) Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2017	Apr. 30, 2017
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		21,571,831
Amendment Flag	true
Amendment Description	This Amendment No. 1 on Form 10-Q/A (the "Amendment") amends the GlobalSCAPE, Inc. Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2017, (the "Form 10-Q"), as filed with the Securities and Exchange Commission on May 12, 2017. This amendment corrects a typographical error in the condensed consolidated balance sheet as of December 31, 2016, presented in the Form 10-Q. This typographical error caused the individual line item amounts in non-current assets as of December 31, 2016, to be improperly matched with their respective descriptions. When matched with their appropriate descriptions, each item in non-current assets as of December 31, 2016, in the Form 10-Q is identical to that same item on the balance sheet as of December 31, 2016, as presented in the GlobalSCAPE, Inc. Form 10-K for the year ended December 31, 2016, as filed with the Securities and Exchange Commission on March 27, 2017 (the "Form 10-K").
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, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 10,400	$ 8,895
Short term certificates of deposit	2,759	2,754
Accounts receivable, net	5,499	6,964
Federal income tax receivable	0	169
Prepaid and other expenses	492	521
Total current assets	19,150	19,303
Long term certificates of deposit	12,837	12,779
Capitalized software development costs, net	3,731	3,743
Goodwill	12,712	12,712
Deferred tax asset, net	1,190	942
Property and equipment, net	577	456
Other assets	64	245
Total assets	50,261	50,180
Current liabilities:
Accounts payable	657	876
Accrued expenses	1,928	1,836
Income tax payable	474	0
Deferred revenue	12,704	13,655
Total current liabilities	15,763	16,367
Deferred revenue, non-current portion	3,618	3,790
Other long term liabilities	163	147
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, 21,970,412 and 21,920,912 shares issued at March 31, 2017, and December 31, 2016, respectively	22	22
Additional paid-in capital	22,064	21,650
Treasury stock, 403,581 shares, at cost, at March 31, 2017 and December 31, 2016	(1,452)	(1,452)
Retained earnings	10,083	9,656
Total stockholders’ equity	30,717	29,876
Total liabilities and stockholders’ equity	$ 50,261	$ 50,180

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares	Mar. 31, 2017	Dec. 31, 2016
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	21,970,412	21,920,912
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, 2017	Mar. 31, 2016
Operating Revenues:
Software licenses	$ 2,464	$ 2,299
Maintenance and support	5,121	4,446
Professional services	733	642
Total Revenues	8,318	7,387
Cost of revenues
Software licenses	736	630
Maintenance and support	412	394
Professional services	377	422
Total cost of revenues	1,525	1,446
Gross profit	6,793	5,941
Operating expenses
Sales and marketing	3,330	3,048
General and administrative	1,721	1,733
Research and development	739	627
Total operating expenses	5,790	5,408
Income from operations	1,003	533
Other income	70	33
Income before income taxes	1,073	566
Income tax expense	322	174
Net income	751	392
Comprehensive income	$ 751	$ 392
Net income per common share -
Basic (in Dollars per share)	$ 0.03	$ 0.02
Diluted (in Dollars per share)	$ 0.03	$ 0.02
Weighted average shares outstanding:
Basic (in Shares)	21,544	21,033
Diluted (in Shares)	22,023	21,652
Cash dividends declared per share (in Dollars per share)	$ 0.015	$ 0.015

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Operating Activities:
Net income	$ 751	$ 392
Items not involving cash at the time they are recorded in the statement of operations:
Provision for sales returns and doubtful accounts receivable	11	43
Depreciation and amortization	541	501
Share-based compensation	324	222
Deferred taxes	(248)	(19)
Excess tax benefit from share-based compensation	0	(3)
Subtotal before changes in operating assets and liabilities	1,379	1,136
Changes in operating assets and liabilities:
Accounts receivable	1,454	916
Prepaid expenses	29	34
Deferred revenue	(1,123)	(416)
Accounts payable	(219)	(350)
Accrued expenses	92	(272)
Other assets	181	22
Accrued interest receivable	(63)	(16)
Other long-term liabilities	16	3
Income tax receivable and payable	643	150
Net cash provided by operating activities	2,389	1,207
Investing Activities:
Software development costs capitalized	(462)	(488)
Purchase of property and equipment	(188)	(90)
Net cash (used in) investing activities	(650)	(578)
Financing Activities:
Proceeds from exercise of stock options	90	122
Excess tax benefit from share-based compensation	0	3
Dividends paid	(324)	(315)
Net cash (used in) financing activities	(234)	(190)
Net increase in cash	1,505	439
Cash at beginning of period	8,895	15,885
Cash at end of period	10,400	16,324
Cash paid during the period for:
Interest	0	0
Income taxes	$ 15	$ 22

1. Nature of Business

1. Nature of Business	3 Months Ended
	Mar. 31, 2017
Disclosure Text Block [Abstract]
Nature of Operations [Text Block]	1. Nature of Business We provide secure information exchange capabilities for enterprises and consumers through the development and distribution of software, delivery of managed and hosted solutions, and provisioning of associated services. Our solution portfolio facilitates transmission of critical information such as financial data, medical records, customer files, vendor files, personnel files, transaction activity, and other similar documents between diverse and geographically separated network infrastructures while supporting a range of information protection approaches to meet privacy and other security requirements. In addition to enabling secure, flexible transmission of critical information using servers, desktop and notebook computers, and a wide range of network-enabled mobile devices, our products also provide customers with the ability to monitor and audit file transfer activities. Our primary product is Enhance File Transfer, or EFT. We have other products that complement our EFT product. Throughout these notes unless otherwise noted, our references to the 2017 quarter and the 2016 quarter refer to the three months ended March 31, 2017 and 2016, respectively.

2. Basis of Presentation

2. Basis of Presentation	3 Months Ended
	Mar. 31, 2017
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, 2016, which we refer to as the 2016 Form 10-K, as well as Management’s Discussion and Analysis of Financial Condition and Results of Operations We follow accounting standards set by the Financial Accounting Standards Board. This board sets GAAP that we follow in preparing financial statements that report our financial position, results of operations, and sources and uses of cash. We also follow the reporting regulations of the United States Securities and Exchange Commission, or SEC. The preparation of financial statements in accordance with GAAP requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities known to exist as of the date the financial statements are published, and the reported amounts of revenues and expenses during the reporting period. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of our financial statements. It is possible the actual results could differ from these estimates and assumptions and could have a material effect on the reported amounts of our financial position and results of operations.

3. Significant Accounting Polic

3. Significant Accounting Policies	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Significant Accounting Policies [Text Block]	3. Significant Accounting Policies Principles of Consolidation The accompanying condensed 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. Changes in Accounting Methods, Reclassifications and Revisions As part of our ongoing enhancement and refinement of our financial reporting to fairly present our results of operations and financial position, we may make changes from time-to-time in accounting methods and in the classification and presentation of our business activities in our financial statements. To ensure comparability between periods, we revise previous period financial statements presented to conform them to the method of presentation in our current period financial statements. If the changes increase or decrease previously reported amounts of revenue or expenses, we adjust retained earnings as of the beginning of the earliest period presented for the cumulative effect, if any, on that balance. If these changes affect our financial statements for previously reported interim periods not presented herein, we present revised financial statements for those periods when they are reported in the future. Method of Amortization of Deferred Revenue Related to M&S Contracts In previously issued financial statements, we amortized deferred revenue related to maintenance and support, or M&S, contracts by recording a full month of amortization in the first month of a contract. We used that method based on our intent to match revenue from our M&S contracts to the expense we incur when delivering M&S services. We acknowledge that the more common and widespread practice is to amortize deferred revenue based upon the specific number of days the M&S contract is in place during that month. Both methods result in the recognition of the same amount of revenue over the term of the M&S contract but yield differing amounts of revenue being recognized in the first month and last month of an M&S contract. Commencing with the issuance of our financial statements as of December 31, 2016, and for the year then ended, we changed our method of amortizing deferred revenue related to M&S contracts such that our consolidated statements of operations and balance sheets included herein are now prepared using the specific number of days method. This change decreased M&S revenue and net income for the three months ended March 31, 2016, as reported herein by immaterial amounts relative to amounts previously reported for that period. This change increased deferred revenue as of March 31, 2016, by an immaterial amount relative to the amount previously reported as of that date. This change has no effect on the total amount of revenue we will realize from our M&S contracts. Method of Recording M&S Billings We may invoice a customer for M&S to be provided commencing on a date in a month subsequent to the month in which we invoice the customer. We typically receive a purchase order from our customers for M&S prior to invoicing them, and it is not uncommon for a customer to pay us in advance of that M&S commencement date either on their own or when we request such payment. Accordingly, in our previously issued financial statements as of March 31, 2016, we recorded an account receivable and deferred revenue for these invoices as of the date of the invoice. Commencing with the preparation and issuance of our financial statements as of December 31, 2016, we determined that a reasonable, alternate and more conservative method would be to wait until the commencement date of the M&S contract had arrived to record the account receivable and deferred revenue for any such invoices for which we have not been paid as of the balance sheet date. Accordingly, our condensed consolidated balance sheet as of March 31, 2016, included herein is now prepared and presented using that method. This change had the effect of decreasing our reported amounts of accounts receivable and deferred revenue relative to the method we previously used but does not affect any of our reported amounts of revenue or net income. Reclassification of Sales Engineer Expenses We employ sales engineers who assist our sales staff in addressing technical considerations by our customers prior to their purchasing our product. Our use of sales engineers has expanded in recent quarters. Prior to 2016, we classified the expense of sales engineers as part of costs of revenue – professional services. Commencing with the preparation and issuance of our financial statements as of December 31, 2016, we began classifying these expenses as part of sales and marketing expense to more appropriately present the current nature of the activities of our sales engineers. This change has the effect of decreasing cost of revenue – professional services and increasing sales and marketing expense. It does not affect any of our reported amounts of revenue or net income. Reclassification of Reserve for Uncertain Tax Position As described in Note 9, we maintain a reserve for uncertain tax positions. Previously, we classified that reserve as a current liability since it was not material to our financial statements taken as a whole. Commencing with the preparation of our financial statements as of December 31, 2016, we determined it appropriate to classify it as a component of other long term liabilities. This change has the effect of decreasing current income taxes payable and increasing other long term liabilities. Reclassification of Professional Services Revenue In preparing our condensed consolidated statement of operations and comprehensive income for the 2017 quarter, we changed the classification of certain revenue from M&S to professional services to better reflect the nature of that revenue. We have made the same reclassification in our condensed consolidated statement of operations and comprehensive income for the 2016 quarter presented herein. With respect to the above items, we have revised our financial statements as of March 31, 2016 and for the three months then ended. The following tables illustrate the effects of the above items on those previously issued financial statements: Condensed Consolidated Statement of Operations and Comprehensive Income (in thousands, except per share amounts) For the Three Months Ended March 31, 2016 Revision Related To As Previously Reported Change in Method of Deferred Revenue Amortization Reclassification of Sales Engineer Expenses Reclassification of Professional Service Revenue As Revised Operating revenues: Software licenses $ 2,299 $ 2,299 Maintenance and support 4,497 (23 ) (28 ) 4,446 Professional services 614 28 642 Total revenues 7,410 (23 ) - 7,387 Costs of revenues Software licenses 630 630 Maintenance and support 394 394 Professional services 569 (147 ) 422 Total costs of revenues 1,593 - (147 ) 1,446 Gross Profit 5,817 (23 ) 147 5,941 Operating expenses Sales and marketing 2,901 147 3,048 General and administrative 1,733 1,733 Research and development 627 627 Total operating expenses 5,261 - 147 5,408 Income from operations 556 (23 ) - 533 Other income (expense), net 33 33 Income before income taxes 589 (23 ) - 566 Income tax expense 182 (8 ) - 174 Net income $ 407 $ (15 ) $ - $ 392 Comprehensive income $ 407 $ (15 ) $ 392 Comprehensive income $ 407 $ (15 ) $ - $ 392 Net income per common share - basic $ 0.02 $ - $ - $ 0.02 Net income per common share - diluted $ 0.02 $ - $ - $ 0.02 Condensed Consolidated Balance Sheets (in thousands) As of March 31, 2016 Revision Related To As Previously Reported Change in Method of Deferred Revenue Amortization Change in Method of Recording M&S Billings Change in Classification of Reserve for Uncertain Tax Position As Assets Current assets: Cash and cash equivalents $ 16,324 $ 16,324 Short term investments 3,270 3,270 Accounts receivable, net 5,340 $ (423 ) 4,917 Federal income tax receivable 35 $ 362 397 Prepaid and other expenses 477 477 Total current assets 25,446 362 (423 ) - 25,385 Long term investments Property and equipment, net 517 517 Capitalized software development costs, net 4,040 4,040 Goodwill 12,712 12,712 Deferred tax asset, net 959 959 Other assets 38 38 Total assets $ 43,712 $ 362 $ (423 ) $ - $ 43,651 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable 489 489 Accrued expenses 1,621 1,621 Deferred revenue 11,672 (29 ) 347 11,990 Income taxes payable 34 62 (96 ) - Total current liabilities 13,816 33 347 (96 ) 14,100 Deferred revenue, non-current portion 3,718 68 76 3,862 Other long term liabilities 41 96 137 Stockholders' Equity: Preferred stock - - Common stock 21 21 Additional paid-in capital 19,930 19,930 Treasury stock (1,452 ) (1,452 ) Retained earnings 7,638 (585 ) 7,053 Total stockholders’ equity 26,137 (585 ) 25,552 Total liabilities and stockholders’ equity $ 43,712 $ (484 ) $ 423 $ - $ 43,651 Condensed Consolidated Statements of Cash Flows (in thousands) For the Three Months Ended March 31, 2016 As Previously Reported Change in Method of Deferred Revenue Amortization Change in Method of Recording M&S Billings Change in Classification of Reserve for Uncertain Tax Position As Adjusted Operating Activities: Net income $ 407 (15 ) $ 392 Adjustments to reconcile net income to net cash provided by operating activities: Bad debt expense 43 43 Depreciation and amortization 501 501 Stock-based compensation 222 222 Deferred taxes (19 ) (19 ) Excess tax deficiency from exercise of share based compensation (3 ) (3 ) Subtotal before changes in operating assets and liabilities 1,151 (15 ) - - 1,136 Changes in operating assets and liabilities: Accounts receivable 698 218 916 Prepaid expenses 34 34 Federal income taxes 165 (9 ) (6 ) 150 Accrued interest receivable (16 ) (16 ) Other assets 22 22 Accounts payable (350 ) (350 ) Accrued expenses (272 ) (272 ) Deferred revenues (222 ) (412 ) 218 (416 ) Other long-term liabilities (3 ) 6 3 Net cash provided by (used in) operating activities 1,207 (436 ) 436 - 1,207 Investing Activities: Software development costs (488 ) (488 ) Purchase of property and equipment (90 ) (90 ) Net cash provided by (used in) investing activities (578 ) - - - (578 ) Financing Activities: Proceeds from exercise of stock options 122 122 Tax deficiency (benefit) from stock-based compensation 3 3 Dividends paid (315 ) (315 ) Net cash provided by (used in) financing activities (190 ) - - - (190 ) Net increase (decrease) in cash 439 439 Cash at beginning of period 15,885 - - - 15,885 Cash at end of period $ 16,324 $ - $ - $ - $ 16,324 Supplemental disclosure of cash flow information: Cash paid during the period for: Interest $ - $ - $ - $ - $ - Income taxes $ 22 $ - $ - $ - $ 22 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 an M&S contract. 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. We provide services under M&S contracts with terms generally ranging from one to three years. We require up-front payment of our M&S fee in an amount that covers the entire term of the agreement. We record as deferred revenue amounts due or paid that relate to future periods during which we will provide the M&S service. Deferred revenue related to services we will deliver within one year is presented as a current liability while deferred revenue related to services that we will deliver more than one year into the future is presented as a non-current liability. We reduce deferred revenue and recognize revenue ratably in future periods as we deliver the M&S service. For our products licensed and delivered under a software-as-a-service, or SaaS, transaction on a monthly or other periodic subscription basis, we recognize subscription revenue, including initial setup fees, on a monthly basis ratably over the contractual term of the customer contract as we deliver our products and services. Amounts 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. Cash and cash equivalents Cash and cash equivalents includes all cash and highly liquid investments with original maturities of three months or less. 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 expensed as incurred. Goodwill Goodwill is not amortized. On at least an annual basis, we test goodwill for impairment at the reporting unit level using December 31 as the measurement date. 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, 2016, 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 program plan and 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 and our method of amortizing them 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 $455,080 and $407,441 in the 2017 quarter and the 2016 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 percent 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 restricted stock and 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 ASU 2017-04, Intangibles – Goodwill and Other (issued January 2017) - ASU 2016-15, Statement of Cash Flows – Classification of Certain Cash Receipts and Cash Payments (issued June 2016) - ASU 2016-13, Financial Instruments – Credit Losses (issued June 2016) ASU 2016-09, Improvements to Employee Share-Based Payment Accounting (issued March 2016) – This standard also permits an accounting policy election for the impact of forfeitures on the recognition of expense for share-based payment awards. Forfeitures may be either estimated (as has been the requirement in the past) or recognized when they occur. We elected to continue estimating forfeitures consistent with our existing practices thereby resulting in no change to our application of GAAP for this aspect of computing share-based compensation. ASU 2016-02, Leases (issued February 2016) - ASU 2015-17, Income Tax: Balance Sheet Classification of Deferred Taxes (issued November 2015) ASU 2014-09, Revenue from Contracts with Customers (issued May 2014) We believe the application of ASU 2014-09 will result in a change in the manner in which we record sales commission expense related to M&S contracts. Currently, we record the full amount of the sales commission paid on the full value of an M&S contract as an expense on the inception date of the M&S contract. We believe that under ASU 2014-09, we will record that commission expense ratably over the term of the M&S contract. We are in the process of quantifying the effect this change will have on our financial statements. Use of Estimates The preparation of condensed consolidated financial statements in accordance with GAAP requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities known to exist as of the date the financial statements are published, and the reported amounts of revenues and expenses during the reporting period. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of the Company’s financial statements. It is possible that the actual results could differ from these estimates and assumptions, which could have a material effect on the reported amounts of the Company’s financial position and results of operation.

4. Certificates of Deposit

4. Certificates of Deposit	3 Months Ended
	Mar. 31, 2017
Cash and Cash Equivalents [Abstract]
Cash and Cash Equivalents Disclosure [Text Block]	4. Certificates of Deposit Our certificates of deposit are held at a bank and mature at various dates through December 2021. Certificates of deposit with contractual maturity dates less than one year from the balance sheet date are presented as current assets. Certificates of deposit with contractual maturity dates beyond one year from the balance sheet date are presented as non-current assets. We have the ability to hold these certificates of deposit until their maturity dates and as of the date of this report intend to do so. We measure these investments on a recurring basis using Level 1 of the fair value hierarchy prescribed by GAAP which results in them being presented at original cost plus accrued interest earned. There is no amortization of original cost associated with our certificates of deposit.

5. Accounts Receivable

5. Accounts Receivable	3 Months Ended
	Mar. 31, 2017
Receivables [Abstract]
Loans, Notes, Trade and Other Receivables Disclosure [Text Block]	5. Accounts Receivable We bill our customers and issue them an invoice when we have delivered our goods or services to them. In addition, when our customers agree to purchase or renew M&S services, we bill and invoice our customers at that time which could be before the date we begin delivering those services. In that event, we exclude from accounts receivable (and from the related deferred revenue, see Note 3) the invoices we have issued for which the M&S services commencement date is in the future and which have not been paid by the customer as of the date of our financial statements. Accordingly, we determine our accounts receivable as follows ($ in thousands): March 31, 2017 December 31, 2016 Total invoices issued and unpaid $ 6,259 $ 7,680 Less: Unpaid invoices relating to M&S contracts with a start date subsequent to the balance sheet date (410 ) (381 ) Gross accounts receivable 5,849 7,299 Allowance for sales returns and doubtful accounts (350 ) (335 ) Accounts receivable, net $ 5,499 $ 6,964

6. Capitalized Software Develop

6. Capitalized Software Development Costs	3 Months Ended
	Mar. 31, 2017
Disclosure Text Block [Abstract]
Intangible Assets Disclosure [Text Block]	6. Capitalized Software Development Costs Our capitalized software development costs balances and activities were as follows: ($ in thousands): March 31, December 31, 2017 2016 Gross capitalized cost $ 7,714 $ 7,252 Accumulated amortization (3,983 ) (3,509 ) Net balance $ 3,731 $ 3,743 Three Months Ended March 31, 2017 2016 Amount capitalized $ 462 $ 488 Amortization expense (474 ) (430 ) Released Unreleased Products Products Gross capitalized amount at March 31, 2017 $ 6,171 $ 1,543 Future amortization expense: Nine months ending December 31, 2017 1,116 Year ending December 31, 2018 856 2019 216 2020 - Total $ 2,188 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.

7. Deferred Revenue

7. Deferred Revenue	3 Months Ended
	Mar. 31, 2017
Deferred Revenue Disclosure [Abstract]
Deferred Revenue Disclosure [Text Block]	7. Deferred Revenue As described in Note 5 regarding accounts receivable, when our customers agree to purchase or renew M&S services, we bill and invoice our customers at that time which could be before the date we begin delivering those services. In that event, we exclude from deferred revenue (and from the related accounts receivable) the invoices we have issued for which the M&S services commencement date is in the future and which have not been paid by the customer as of the date of our financial statements. Accordingly, we determine our deferred revenue as follows ($ in thousands): March 31, 2017 December 31, 2016 Total invoiced for M&S contracts for which revenue will be recognized in future periods $ 16,732 $ 17,826 Less: Unpaid invoices relating to M&S contracts with a start date subsequent to the balance sheet date (410 ) (381 ) Total deferred revenue $ 16,322 $ 17,445 Deferred revenue, current portion $ 12,704 $ 13,655 Deferred revenue, non-current portion 3,618 3,790 Total deferred revenue $ 16,322 $ 17,445

8. Stock Options, Restricted St

8. Stock Options, Restricted Stock and Share-Based Compensation	3 Months Ended
	Mar. 31, 2017
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): Three Months Ended March 31, 2017 2016 Share-based compensation expense $ 324 $ 222 Stock Options We have granted stock options to our officers and employees under long-term equity incentive plans that originated in 2000, 2010 and 2016. During the 2017 quarter, we granted stock options only under the 2016 plan. Provisions and characteristics of the options granted to our officers and employees under our long-term equity incentive plans 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. · 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, expire ten years from the date of grant, and are exercisable for a period of ninety days after the end of employment. · Upon exercise of a stock option, we issue new shares from the shares of common stock we are authorized to issue. We currently issue stock-based awards to our officers and employees only under the 2016 plan which authorizes the issuance of up to 5,000,000 shares of common stock for stock-based incentives including stock options and restricted stock awards. As of March 31, 2017, stock-based incentives for up to 4,329,500 shares remained available for issuance in the future under this plan. We have not previously issued any restricted stock under any of these plans. 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, 2016 2,407,005 $ 3.00 7.19 $ 2,574 Granted 660,000 $ 3.76 Forfeited (86,080 ) $ 3.87 Exercised (49,500 ) $ 1.82 Outstanding at March 31, 2017 2,931,425 $ 3.17 7.56 $ 2,238 Exercisable at March 31, 2017 1,245,214 $ 2.59 5.17 $ 1,681 Additional information about our stock options is as follows: Three Months Ended March 31, 2017 2016 Weighted average fair value of options granted $ 1.47 $ 1.65 Intrinsic value of options exercised $ 100,386 $ 71,745 Cash received from stock options exercised $ 90,114 $ 121,671 Number of options that vested 295,124 193,866 Fair value of options that vested $ 450,336 $ 248,148 Unrecognized compensation expense related to non-vested options at end of period $ 2,279,284 $ 1,673,156 Weighted average years over which non-vested option expense will be recognized 2.34 2.50 As of March 31, 2017 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 87,100 3.32 $ 1.07 87,100 $ 1.07 $ 1.47 - $2.32 459,745 4.64 $ 1.83 458,385 $ 1.83 $ 2.34 - $3.52 1,144,680 8.03 $ 3.22 525,179 $ 3.02 $ 3.53 - $4.25 1,239,900 8.50 $ 3.76 174,550 $ 4.05 Total options 2,931,425 1,245,214 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, 2017 2016 Expected volatility 45 % 56 % Expected annual dividend yield 1.50 % 1.50 % Risk free rate of return 1.94 % 1.53 % Expected option term (years) 6.00 6.00 Restricted Stock Awards Our 2015 Non-Employee Directors Long Term Incentive Plan (“2015 Directors 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 as restricted shares 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, after which time the restrictive legend is removed from the shares. · Restricted shares participate in dividend payments and may be voted. · As of March 31, 2017, stock based incentives for up to 340,000 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, 2016 80,000 $ 3.31 Shares granted with restrictions - $ - Shares vested and restrictions removed - $ - $ - Restricted shares outstanding at March 31, 2017 80,000 $ 3.31 Unrecognized compensation expense for non-vested shares as of March 31, 2017 Expense to be recognized in future periods $ 25,322 Weighted average number of months over which expense is expected to be recognized 1.2

9. Income Taxes

9. Income Taxes	3 Months Ended
	Mar. 31, 2017
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): Three months ended March 31, 2017 2016 Current Deferred Total Current Deferred Total Federal $ 519 $ (238 ) $ 281 $ 172 $ (7 ) $ 165 State 51 (10 ) 41 21 (12 ) 9 Total $ 570 $ (248 ) $ 322 $ 193 $ (19 ) $ 174 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): March 31, December 31, 2017 2016 Deferred tax assets: Deferred revenue $ 1,331 $ 1,228 Capital loss carryforward 1,099 1,099 Share-based compensation 619 578 Compensation and benefits 270 176 Texas franchise tax R&D credit 156 153 Allowance for doubtful accounts 119 114 Net operating loss carryforward 76 91 Other 62 51 Less Valuation Allowances: Capital loss carryforward (1,099 ) (1,099 ) Texas franchise tax R&D credit (156 ) (153 ) Total deferred tax assets 2,477 2,238 Deferred tax liabilities: Intangible assets 1,285 1,289 Depreciation 2 7 Total gross deferred tax liabilities 1,287 1,296 Net deferred tax assets $ 1,190 $ 942 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. As of March 31, 2017, we had federal income tax net operating loss carryforwards of $225,000 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 March 31, 2017, we had federal income tax capital loss carryforwards of $3,231,000 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 provided a valuation allowance for the full amount of this carryforward. This carryforward expires in 2017. As of March 31, 2017, we had Texas R&D tax credit carryforwards of $156,000. We can realize Texas R&D tax credit carryforwards to the extent we have sufficient Texas Franchise Tax in future years. We believe it uncertain that we will have sufficient Texas Franchise Tax in the future to support utilization of these credits and, accordingly, have provided a valuation allowance for the full amount of this carryforward. These carryforwards expire in 2034 through 2036. 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. A routine examination of our 2008, 2009 and 2010 federal income tax returns conducted and completed by the Internal Revenue Service resulted in the amount of the R&D tax credits allowed for those years being less than the amounts we claimed on those federal income tax returns. If the Internal Revenue Service examines our federal income tax returns for 2011 and later years, we believe they may apply their same criteria to the R&D tax credits we claimed on those tax returns. Accordingly, we believed it more-likely-than-not that the R&D tax credit allowed for those years may be less than the amounts we have claimed. As a result, we maintain a reserve for an uncertain tax position for this matter in the amount of $136,000 as of March 31, 2017. The aggregate changes in the balance of our gross unrecognized tax benefits were as follows ($ in thousands): Three Months Ended March 31, 2017 2016 Balance at beginning of period $ 116 $ 90 Increases for tax positions related to the current year 4 6 Increases for tax positions related to prior years 16 - Decreases for tax positions related to prior years - - Decreases due to settlements related to prior years - - Balance at end of period $ 136 $ 96 We believe it reasonably possible that we will not recognize any of our unrecognized tax benefits at least through March 31, 2017. If we realized and recognized any of our gross unrecognized tax benefits, such benefits would reduce our effective tax rate in the year of recognition. We are subject to taxation in the United States and in multiple state jurisdictions. Our federal income tax returns for 2015, 2014 and 2013 are subject to examination by the Internal Revenue Service. Our amended federal income tax returns for 2012 and 2011 are subject to examination with the amount of any claim for payment of additional taxes limited to the amount by which the tax due on those amended returns was less than the tax due on the returns for those years as originally filed. Our state tax returns are subject to examination for varying periods of time by numerous state taxing authorities. Currently, none of our federal or state income tax returns are under examination. 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 the 2017 quarter or the 2016 quarter. 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): Three months ended March 31, 2017 2016 Income tax expense (benefit) at federal statutory rate $ 365 $ 193 Increase (decrease) in taxes resulting from: State taxes, net of federal benefit 24 2 Stock based compensation 59 16 Other (22 ) 9 R&D tax credit uncertain tax position (net) (110 ) (32 ) Research and development credit 20 6 Domestic production activities deduction (14 ) (20 ) Income tax expense (benefit) per the statement of operations $ 322 $ 174

10. Earnings per Common Share

10. Earnings per Common Share	3 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
Earnings Per Share [Text Block]	10. 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, 2017 2016 Numerators Numerator for basic and diluted earnings per share: Net income $ 751 $ 392 Denominators Denominators for basic and diluted earnings per share: Weighted average shares outstanding - basic 21,544 21,033 Dilutive potential common shares Stock options and awards 479 619 Denominator for diluted earnings per share 22,023 21,652 Net income per common share - basic $ 0.03 $ 0.02 Net income per common share – diluted $ 0.03 $ 0.02 As a result of our implementation of ASU 2016-09, Improvements to Employee Share-Based Payment Accounting (issued March 2016),

11. Dividends

11. Dividends	3 Months Ended
	Mar. 31, 2017
Dividends [Abstract]
Dividends [Text Block]	11. Dividends We paid dividends as follows: Three Months Ended March 31, 2017 2016 Dividend per share of common stock $ 0.015 $ 0.015 Dividend record date February 23, 2017 February 23, 2016 Dividend payment date March 8, 2017 March 8, 2016

12. Commitments and Contingenci

12. Commitments and Contingencies	3 Months Ended
	Mar. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies Disclosure [Text Block]	12. 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 $1.9 million.

13. Concentration of Business V

13. Concentration of Business Volume and Credit Risk	3 Months Ended
	Mar. 31, 2017
Risks and Uncertainties [Abstract]
Concentration Risk Disclosure [Text Block]	13. 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 distributors even though those end users can also purchase those products directly from us. In both the 2017 quarter and 2016 quarter, we earned approximately 14% of our revenue from such sales through our largest, third party, channel distributor. As of March 31, 2017, approximately 16% of our accounts receivable were due from this channel distributor with payment for substantially all such amounts having been received subsequent to that date.

14. Segment and Geographic Disc

14. Segment and Geographic Disclosures	3 Months Ended
	Mar. 31, 2017
Segment Reporting [Abstract]
Segment Reporting Disclosure [Text Block]	14. 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 78% and 73% of our total revenues in 2017 and 2016 quarter, respectively. 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 all periods. We attribute 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, 2017.

Accounting Policies, by Policy

Accounting Policies, by Policy (Policies)	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Consolidation, Policy [Policy Text Block]	Principles of Consolidation The accompanying condensed 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.
Reclassification, Policy [Policy Text Block]	Changes in Accounting Methods, Reclassifications and Revisions As part of our ongoing enhancement and refinement of our financial reporting to fairly present our results of operations and financial position, we may make changes from time-to-time in accounting methods and in the classification and presentation of our business activities in our financial statements. To ensure comparability between periods, we revise previous period financial statements presented to conform them to the method of presentation in our current period financial statements. If the changes increase or decrease previously reported amounts of revenue or expenses, we adjust retained earnings as of the beginning of the earliest period presented for the cumulative effect, if any, on that balance. If these changes affect our financial statements for previously reported interim periods not presented herein, we present revised financial statements for those periods when they are reported in the future. Method of Amortization of Deferred Revenue Related to M&S Contracts In previously issued financial statements, we amortized deferred revenue related to maintenance and support, or M&S, contracts by recording a full month of amortization in the first month of a contract. We used that method based on our intent to match revenue from our M&S contracts to the expense we incur when delivering M&S services. We acknowledge that the more common and widespread practice is to amortize deferred revenue based upon the specific number of days the M&S contract is in place during that month. Both methods result in the recognition of the same amount of revenue over the term of the M&S contract but yield differing amounts of revenue being recognized in the first month and last month of an M&S contract. Commencing with the issuance of our financial statements as of December 31, 2016, and for the year then ended, we changed our method of amortizing deferred revenue related to M&S contracts such that our consolidated statements of operations and balance sheets included herein are now prepared using the specific number of days method. This change decreased M&S revenue and net income for the three months ended March 31, 2016, as reported herein by immaterial amounts relative to amounts previously reported for that period. This change increased deferred revenue as of March 31, 2016, by an immaterial amount relative to the amount previously reported as of that date. This change has no effect on the total amount of revenue we will realize from our M&S contracts. Method of Recording M&S Billings We may invoice a customer for M&S to be provided commencing on a date in a month subsequent to the month in which we invoice the customer. We typically receive a purchase order from our customers for M&S prior to invoicing them, and it is not uncommon for a customer to pay us in advance of that M&S commencement date either on their own or when we request such payment. Accordingly, in our previously issued financial statements as of March 31, 2016, we recorded an account receivable and deferred revenue for these invoices as of the date of the invoice. Commencing with the preparation and issuance of our financial statements as of December 31, 2016, we determined that a reasonable, alternate and more conservative method would be to wait until the commencement date of the M&S contract had arrived to record the account receivable and deferred revenue for any such invoices for which we have not been paid as of the balance sheet date. Accordingly, our condensed consolidated balance sheet as of March 31, 2016, included herein is now prepared and presented using that method. This change had the effect of decreasing our reported amounts of accounts receivable and deferred revenue relative to the method we previously used but does not affect any of our reported amounts of revenue or net income. Reclassification of Sales Engineer Expenses We employ sales engineers who assist our sales staff in addressing technical considerations by our customers prior to their purchasing our product. Our use of sales engineers has expanded in recent quarters. Prior to 2016, we classified the expense of sales engineers as part of costs of revenue – professional services. Commencing with the preparation and issuance of our financial statements as of December 31, 2016, we began classifying these expenses as part of sales and marketing expense to more appropriately present the current nature of the activities of our sales engineers. This change has the effect of decreasing cost of revenue – professional services and increasing sales and marketing expense. It does not affect any of our reported amounts of revenue or net income. Reclassification of Reserve for Uncertain Tax Position As described in Note 9, we maintain a reserve for uncertain tax positions. Previously, we classified that reserve as a current liability since it was not material to our financial statements taken as a whole. Commencing with the preparation of our financial statements as of December 31, 2016, we determined it appropriate to classify it as a component of other long term liabilities. This change has the effect of decreasing current income taxes payable and increasing other long term liabilities. Reclassification of Professional Services Revenue In preparing our condensed consolidated statement of operations and comprehensive income for the 2017 quarter, we changed the classification of certain revenue from M&S to professional services to better reflect the nature of that revenue. We have made the same reclassification in our condensed consolidated statement of operations and comprehensive income for the 2016 quarter presented herein. With respect to the above items, we have revised our financial statements as of March 31, 2016 and for the three months then ended. The following tables illustrate the effects of the above items on those previously issued financial statements: Condensed Consolidated Statement of Operations and Comprehensive Income (in thousands, except per share amounts) For the Three Months Ended March 31, 2016 Revision Related To As Previously Reported Change in Method of Deferred Revenue Amortization Reclassification of Sales Engineer Expenses Reclassification of Professional Service Revenue As Revised Operating revenues: Software licenses $ 2,299 $ 2,299 Maintenance and support 4,497 (23 ) (28 ) 4,446 Professional services 614 28 642 Total revenues 7,410 (23 ) - 7,387 Costs of revenues Software licenses 630 630 Maintenance and support 394 394 Professional services 569 (147 ) 422 Total costs of revenues 1,593 - (147 ) 1,446 Gross Profit 5,817 (23 ) 147 5,941 Operating expenses Sales and marketing 2,901 147 3,048 General and administrative 1,733 1,733 Research and development 627 627 Total operating expenses 5,261 - 147 5,408 Income from operations 556 (23 ) - 533 Other income (expense), net 33 33 Income before income taxes 589 (23 ) - 566 Income tax expense 182 (8 ) - 174 Net income $ 407 $ (15 ) $ - $ 392 Comprehensive income $ 407 $ (15 ) $ 392 Comprehensive income $ 407 $ (15 ) $ - $ 392 Net income per common share - basic $ 0.02 $ - $ - $ 0.02 Net income per common share - diluted $ 0.02 $ - $ - $ 0.02 Condensed Consolidated Balance Sheets (in thousands) As of March 31, 2016 Revision Related To As Previously Reported Change in Method of Deferred Revenue Amortization Change in Method of Recording M&S Billings Change in Classification of Reserve for Uncertain Tax Position As Assets Current assets: Cash and cash equivalents $ 16,324 $ 16,324 Short term investments 3,270 3,270 Accounts receivable, net 5,340 $ (423 ) 4,917 Federal income tax receivable 35 $ 362 397 Prepaid and other expenses 477 477 Total current assets 25,446 362 (423 ) - 25,385 Long term investments Property and equipment, net 517 517 Capitalized software development costs, net 4,040 4,040 Goodwill 12,712 12,712 Deferred tax asset, net 959 959 Other assets 38 38 Total assets $ 43,712 $ 362 $ (423 ) $ - $ 43,651 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable 489 489 Accrued expenses 1,621 1,621 Deferred revenue 11,672 (29 ) 347 11,990 Income taxes payable 34 62 (96 ) - Total current liabilities 13,816 33 347 (96 ) 14,100 Deferred revenue, non-current portion 3,718 68 76 3,862 Other long term liabilities 41 96 137 Stockholders' Equity: Preferred stock - - Common stock 21 21 Additional paid-in capital 19,930 19,930 Treasury stock (1,452 ) (1,452 ) Retained earnings 7,638 (585 ) 7,053 Total stockholders’ equity 26,137 (585 ) 25,552 Total liabilities and stockholders’ equity $ 43,712 $ (484 ) $ 423 $ - $ 43,651 Condensed Consolidated Statements of Cash Flows (in thousands) For the Three Months Ended March 31, 2016 As Previously Reported Change in Method of Deferred Revenue Amortization Change in Method of Recording M&S Billings Change in Classification of Reserve for Uncertain Tax Position As Adjusted Operating Activities: Net income $ 407 (15 ) $ 392 Adjustments to reconcile net income to net cash provided by operating activities: Bad debt expense 43 43 Depreciation and amortization 501 501 Stock-based compensation 222 222 Deferred taxes (19 ) (19 ) Excess tax deficiency from exercise of share based compensation (3 ) (3 ) Subtotal before changes in operating assets and liabilities 1,151 (15 ) - - 1,136 Changes in operating assets and liabilities: Accounts receivable 698 218 916 Prepaid expenses 34 34 Federal income taxes 165 (9 ) (6 ) 150 Accrued interest receivable (16 ) (16 ) Other assets 22 22 Accounts payable (350 ) (350 ) Accrued expenses (272 ) (272 ) Deferred revenues (222 ) (412 ) 218 (416 ) Other long-term liabilities (3 ) 6 3 Net cash provided by (used in) operating activities 1,207 (436 ) 436 - 1,207 Investing Activities: Software development costs (488 ) (488 ) Purchase of property and equipment (90 ) (90 ) Net cash provided by (used in) investing activities (578 ) - - - (578 ) Financing Activities: Proceeds from exercise of stock options 122 122 Tax deficiency (benefit) from stock-based compensation 3 3 Dividends paid (315 ) (315 ) Net cash provided by (used in) financing activities (190 ) - - - (190 ) Net increase (decrease) in cash 439 439 Cash at beginning of period 15,885 - - - 15,885 Cash at end of period $ 16,324 $ - $ - $ - $ 16,324 Supplemental disclosure of cash flow information: Cash paid during the period for: Interest $ - $ - $ - $ - $ - Income taxes $ 22 $ - $ - $ - $ 22
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 an M&S contract. 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. We provide services under M&S contracts with terms generally ranging from one to three years. We require up-front payment of our M&S fee in an amount that covers the entire term of the agreement. We record as deferred revenue amounts due or paid that relate to future periods during which we will provide the M&S service. Deferred revenue related to services we will deliver within one year is presented as a current liability while deferred revenue related to services that we will deliver more than one year into the future is presented as a non-current liability. We reduce deferred revenue and recognize revenue ratably in future periods as we deliver the M&S service. For our products licensed and delivered under a software-as-a-service, or SaaS, transaction on a monthly or other periodic subscription basis, we recognize subscription revenue, including initial setup fees, on a monthly basis ratably over the contractual term of the customer contract as we deliver our products and services. Amounts 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.
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.
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 expensed as incurred.
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 using December 31 as the measurement date. 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, 2016, 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 program plan and 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 and our method of amortizing them 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 $455,080 and $407,441 in the 2017 quarter and the 2016 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 percent 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 restricted stock and 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 ASU 2017-04, Intangibles – Goodwill and Other (issued January 2017) - ASU 2016-15, Statement of Cash Flows – Classification of Certain Cash Receipts and Cash Payments (issued June 2016) - ASU 2016-13, Financial Instruments – Credit Losses (issued June 2016) ASU 2016-09, Improvements to Employee Share-Based Payment Accounting (issued March 2016) – This standard also permits an accounting policy election for the impact of forfeitures on the recognition of expense for share-based payment awards. Forfeitures may be either estimated (as has been the requirement in the past) or recognized when they occur. We elected to continue estimating forfeitures consistent with our existing practices thereby resulting in no change to our application of GAAP for this aspect of computing share-based compensation. ASU 2016-02, Leases (issued February 2016) - ASU 2015-17, Income Tax: Balance Sheet Classification of Deferred Taxes (issued November 2015) ASU 2014-09, Revenue from Contracts with Customers (issued May 2014) We believe the application of ASU 2014-09 will result in a change in the manner in which we record sales commission expense related to M&S contracts. Currently, we record the full amount of the sales commission paid on the full value of an M&S contract as an expense on the inception date of the M&S contract. We believe that under ASU 2014-09, we will record that commission expense ratably over the term of the M&S contract. We are in the process of quantifying the effect this change will have on our financial statements.
Use of Estimates, Policy [Policy Text Block]	Use of Estimates The preparation of condensed consolidated financial statements in accordance with GAAP requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities known to exist as of the date the financial statements are published, and the reported amounts of revenues and expenses during the reporting period. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of the Company’s financial statements. It is possible that the actual results could differ from these estimates and assumptions, which could have a material effect on the reported amounts of the Company’s financial position and results of operation.

3. Significant Accounting Pol21

3. Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Schedule of Reclassification Adjustments [Table Text Block]	With respect to the above items, we have revised our financial statements as of March 31, 2016 and for the three months then ended. The following tables illustrate the effects of the above items on those previously issued financial statements: Condensed Consolidated Statement of Operations and Comprehensive Income (in thousands, except per share amounts) For the Three Months Ended March 31, 2016 Revision Related To As Previously Reported Change in Method of Deferred Revenue Amortization Reclassification of Sales Engineer Expenses Reclassification of Professional Service Revenue As Revised Operating revenues: Software licenses $ 2,299 $ 2,299 Maintenance and support 4,497 (23 ) (28 ) 4,446 Professional services 614 28 642 Total revenues 7,410 (23 ) - 7,387 Costs of revenues Software licenses 630 630 Maintenance and support 394 394 Professional services 569 (147 ) 422 Total costs of revenues 1,593 - (147 ) 1,446 Gross Profit 5,817 (23 ) 147 5,941 Operating expenses Sales and marketing 2,901 147 3,048 General and administrative 1,733 1,733 Research and development 627 627 Total operating expenses 5,261 - 147 5,408 Income from operations 556 (23 ) - 533 Other income (expense), net 33 33 Income before income taxes 589 (23 ) - 566 Income tax expense 182 (8 ) - 174 Net income $ 407 $ (15 ) $ - $ 392 Comprehensive income $ 407 $ (15 ) $ 392 Comprehensive income $ 407 $ (15 ) $ - $ 392 Net income per common share - basic $ 0.02 $ - $ - $ 0.02 Net income per common share - diluted $ 0.02 $ - $ - $ 0.02 Condensed Consolidated Balance Sheets (in thousands) As of March 31, 2016 Revision Related To As Previously Reported Change in Method of Deferred Revenue Amortization Change in Method of Recording M&S Billings Change in Classification of Reserve for Uncertain Tax Position As Assets Current assets: Cash and cash equivalents $ 16,324 $ 16,324 Short term investments 3,270 3,270 Accounts receivable, net 5,340 $ (423 ) 4,917 Federal income tax receivable 35 $ 362 397 Prepaid and other expenses 477 477 Total current assets 25,446 362 (423 ) - 25,385 Long term investments Property and equipment, net 517 517 Capitalized software development costs, net 4,040 4,040 Goodwill 12,712 12,712 Deferred tax asset, net 959 959 Other assets 38 38 Total assets $ 43,712 $ 362 $ (423 ) $ - $ 43,651 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable 489 489 Accrued expenses 1,621 1,621 Deferred revenue 11,672 (29 ) 347 11,990 Income taxes payable 34 62 (96 ) - Total current liabilities 13,816 33 347 (96 ) 14,100 Deferred revenue, non-current portion 3,718 68 76 3,862 Other long term liabilities 41 96 137 Stockholders' Equity: Preferred stock - - Common stock 21 21 Additional paid-in capital 19,930 19,930 Treasury stock (1,452 ) (1,452 ) Retained earnings 7,638 (585 ) 7,053 Total stockholders’ equity 26,137 (585 ) 25,552 Total liabilities and stockholders’ equity $ 43,712 $ (484 ) $ 423 $ - $ 43,651 Condensed Consolidated Statements of Cash Flows (in thousands) For the Three Months Ended March 31, 2016 As Previously Reported Change in Method of Deferred Revenue Amortization Change in Method of Recording M&S Billings Change in Classification of Reserve for Uncertain Tax Position As Adjusted Operating Activities: Net income $ 407 (15 ) $ 392 Adjustments to reconcile net income to net cash provided by operating activities: Bad debt expense 43 43 Depreciation and amortization 501 501 Stock-based compensation 222 222 Deferred taxes (19 ) (19 ) Excess tax deficiency from exercise of share based compensation (3 ) (3 ) Subtotal before changes in operating assets and liabilities 1,151 (15 ) - - 1,136 Changes in operating assets and liabilities: Accounts receivable 698 218 916 Prepaid expenses 34 34 Federal income taxes 165 (9 ) (6 ) 150 Accrued interest receivable (16 ) (16 ) Other assets 22 22 Accounts payable (350 ) (350 ) Accrued expenses (272 ) (272 ) Deferred revenues (222 ) (412 ) 218 (416 ) Other long-term liabilities (3 ) 6 3 Net cash provided by (used in) operating activities 1,207 (436 ) 436 - 1,207 Investing Activities: Software development costs (488 ) (488 ) Purchase of property and equipment (90 ) (90 ) Net cash provided by (used in) investing activities (578 ) - - - (578 ) Financing Activities: Proceeds from exercise of stock options 122 122 Tax deficiency (benefit) from stock-based compensation 3 3 Dividends paid (315 ) (315 ) Net cash provided by (used in) financing activities (190 ) - - - (190 ) Net increase (decrease) in cash 439 439 Cash at beginning of period 15,885 - - - 15,885 Cash at end of period $ 16,324 $ - $ - $ - $ 16,324 Supplemental disclosure of cash flow information: Cash paid during the period for: Interest $ - $ - $ - $ - $ - Income taxes $ 22 $ - $ - $ - $ 22

5. Accounts Receivable (Tables)

5. Accounts Receivable (Tables)	3 Months Ended
	Mar. 31, 2017
Receivables [Abstract]
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]	Accordingly, we determine our accounts receivable as follows ($ in thousands): March 31, 2017 December 31, 2016 Total invoices issued and unpaid $ 6,259 $ 7,680 Less: Unpaid invoices relating to M&S contracts with a start date subsequent to the balance sheet date (410 ) (381 ) Gross accounts receivable 5,849 7,299 Allowance for sales returns and doubtful accounts (350 ) (335 ) Accounts receivable, net $ 5,499 $ 6,964

6. Capitalized Software Devel23

6. Capitalized Software Development Costs (Tables)	3 Months Ended
	Mar. 31, 2017
Disclosure Text Block [Abstract]
Schedule of Finite-Lived Intangible Assets [Table Text Block]	Our capitalized software development costs balances and activities were as follows: ($ in thousands): March 31, December 31, 2017 2016 Gross capitalized cost $ 7,714 $ 7,252 Accumulated amortization (3,983 ) (3,509 ) Net balance $ 3,731 $ 3,743
Finite-lived Intangible Assets Amortization Expense [Table Text Block]	Three Months Ended March 31, 2017 2016 Amount capitalized $ 462 $ 488 Amortization expense (474 ) (430 )
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Table Text Block]	Released Unreleased Products Products Gross capitalized amount at March 31, 2017 $ 6,171 $ 1,543
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]	Future amortization expense: Nine months ending December 31, 2017 1,116 Year ending December 31, 2018 856 2019 216 2020 - Total $ 2,188

7. Deferred Revenue (Tables)

7. Deferred Revenue (Tables)	3 Months Ended
	Mar. 31, 2017
Deferred Revenue Disclosure [Abstract]
Deferred Revenue, by Arrangement, Disclosure [Table Text Block]	Accordingly, we determine our deferred revenue as follows ($ in thousands): March 31, 2017 December 31, 2016 Total invoiced for M&S contracts for which revenue will be recognized in future periods $ 16,732 $ 17,826 Less: Unpaid invoices relating to M&S contracts with a start date subsequent to the balance sheet date (410 ) (381 ) Total deferred revenue $ 16,322 $ 17,445 Deferred revenue, current portion $ 12,704 $ 13,655 Deferred revenue, non-current portion 3,618 3,790 Total deferred revenue $ 16,322 $ 17,445

8. Stock Options, Restricted 25

8. Stock Options, Restricted Stock and Share-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2017
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, 2017 2016 Share-based compensation expense $ 324 $ 222
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, 2016 2,407,005 $ 3.00 7.19 $ 2,574 Granted 660,000 $ 3.76 Forfeited (86,080 ) $ 3.87 Exercised (49,500 ) $ 1.82 Outstanding at March 31, 2017 2,931,425 $ 3.17 7.56 $ 2,238 Exercisable at March 31, 2017 1,245,214 $ 2.59 5.17 $ 1,681
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, 2017 2016 Weighted average fair value of options granted $ 1.47 $ 1.65 Intrinsic value of options exercised $ 100,386 $ 71,745 Cash received from stock options exercised $ 90,114 $ 121,671 Number of options that vested 295,124 193,866 Fair value of options that vested $ 450,336 $ 248,148 Unrecognized compensation expense related to non-vested options at end of period $ 2,279,284 $ 1,673,156 Weighted average years over which non-vested option expense will be recognized 2.34 2.50
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block]	As of March 31, 2017 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 87,100 3.32 $ 1.07 87,100 $ 1.07 $ 1.47 - $2.32 459,745 4.64 $ 1.83 458,385 $ 1.83 $ 2.34 - $3.52 1,144,680 8.03 $ 3.22 525,179 $ 3.02 $ 3.53 - $4.25 1,239,900 8.50 $ 3.76 174,550 $ 4.05 Total options 2,931,425 1,245,214
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, 2017 2016 Expected volatility 45 % 56 % Expected annual dividend yield 1.50 % 1.50 % Risk free rate of return 1.94 % 1.53 % 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, 2016 80,000 $ 3.31 Shares granted with restrictions - $ - Shares vested and restrictions removed - $ - $ - Restricted shares outstanding at March 31, 2017 80,000 $ 3.31 Unrecognized compensation expense for non-vested shares as of March 31, 2017 Expense to be recognized in future periods $ 25,322 Weighted average number of months over which expense is expected to be recognized 1.2

9. Income Taxes (Tables)

9. Income Taxes (Tables)	3 Months Ended
	Mar. 31, 2017
Income Tax Disclosure [Abstract]
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]	The components of our income tax expense (benefit) are as follows ($ in thousands): Three months ended March 31, 2017 2016 Current Deferred Total Current Deferred Total Federal $ 519 $ (238 ) $ 281 $ 172 $ (7 ) $ 165 State 51 (10 ) 41 21 (12 ) 9 Total $ 570 $ (248 ) $ 322 $ 193 $ (19 ) $ 174
Schedule of Deferred Tax Assets and Liabilities [Table Text Block]	Significant components of our deferred tax assets and liabilities are as follows ($ in thousands): March 31, December 31, 2017 2016 Deferred tax assets: Deferred revenue $ 1,331 $ 1,228 Capital loss carryforward 1,099 1,099 Share-based compensation 619 578 Compensation and benefits 270 176 Texas franchise tax R&D credit 156 153 Allowance for doubtful accounts 119 114 Net operating loss carryforward 76 91 Other 62 51 Less Valuation Allowances: Capital loss carryforward (1,099 ) (1,099 ) Texas franchise tax R&D credit (156 ) (153 ) Total deferred tax assets 2,477 2,238 Deferred tax liabilities: Intangible assets 1,285 1,289 Depreciation 2 7 Total gross deferred tax liabilities 1,287 1,296 Net deferred tax assets $ 1,190 $ 942
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): Three Months Ended March 31, 2017 2016 Balance at beginning of period $ 116 $ 90 Increases for tax positions related to the current year 4 6 Increases for tax positions related to prior years 16 - Decreases for tax positions related to prior years - - Decreases due to settlements related to prior years - - Balance at end of period $ 136 $ 96
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]	Our income tax expense (benefit) reconciles to an income tax expense resulting from applying an assumed statutory federal income rate of 34% to income before income taxes as follows ($ in thousands): Three months ended March 31, 2017 2016 Income tax expense (benefit) at federal statutory rate $ 365 $ 193 Increase (decrease) in taxes resulting from: State taxes, net of federal benefit 24 2 Stock based compensation 59 16 Other (22 ) 9 R&D tax credit uncertain tax position (net) (110 ) (32 ) Research and development credit 20 6 Domestic production activities deduction (14 ) (20 ) Income tax expense (benefit) per the statement of operations $ 322 $ 174

10. Earnings per Common Share (

10. Earnings per Common Share (Tables)	3 Months Ended
	Mar. 31, 2017
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, 2017 2016 Numerators Numerator for basic and diluted earnings per share: Net income $ 751 $ 392 Denominators Denominators for basic and diluted earnings per share: Weighted average shares outstanding - basic 21,544 21,033 Dilutive potential common shares Stock options and awards 479 619 Denominator for diluted earnings per share 22,023 21,652 Net income per common share - basic $ 0.03 $ 0.02 Net income per common share – diluted $ 0.03 $ 0.02

11. Dividends (Tables)

11. Dividends (Tables)	3 Months Ended
	Mar. 31, 2017
Dividends [Abstract]
Schedule of Dividends Payable [Table Text Block]	We paid dividends as follows: Three Months Ended March 31, 2017 2016 Dividend per share of common stock $ 0.015 $ 0.015 Dividend record date February 23, 2017 February 23, 2016 Dividend payment date March 8, 2017 March 8, 2016

3. Significant Accounting Pol29

3. Significant Accounting Policies (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
3. Significant Accounting Policies (Details) [Line Items]
Goodwill, Impairment Loss (in Dollars)			$ 0
Advertising Expense (in Dollars)	$ 455,080	$ 407,441
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 Pol

3. Significant Accounting Policies (Details) - Schedule of Reclassification Adjustments - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2016
Operating revenues:
Software licenses	$ 2,464	$ 2,299
Maintenance and support	5,121	4,446
Professional services	733	642
Total revenues	8,318	7,387
Costs of revenues
Software licenses	736	630
Maintenance and support	412	394
Professional services	377	422
Total costs of revenues	1,525	1,446
Gross Profit	6,793	5,941
Operating expenses
Sales and marketing	3,330	3,048
General and administrative	1,721	1,733
Research and development	739	627
Income from operations	1,003	533
Income before income taxes	1,073	566
Provision for income taxes	322	174
Net income	751	392
Bad debt expense	11	43
Depreciation and amortization	541	501
Stock-based compensation	324	222
Deferred taxes	(248)	(19)
Excess tax deficiency from exercise of share based compensation	0	(3)
Subtotal before changes in operating assets and liabilities	1,379	1,136
Accounts receivable	(1,454)	(916)
Prepaid expenses	(29)	(34)
Accrued interest receivable	63	16
Other assets	(181)	(22)
Accounts payable	(219)	(350)
Accrued expenses	92	(272)
Deferred revenues	(1,123)	(416)
Other long-term liabilities	16	3
Net cash provided by (used in) operating activities	2,389	1,207
Software development costs	(462)	(488)
Purchase of property and equipment	(188)	(90)
Net cash provided by (used in) investing activities	(650)	(578)
Proceeds from exercise of stock options	90	122
Tax deficiency (benefit) from stock-based compensation	0	3
Dividends paid	(324)	(315)
Net cash provided by (used in) financing activities	(234)	(190)
Net increase (decrease) in cash	1,505	439
Cash at beginning of period	8,895	15,885
Cash at end of period	10,400	16,324
Income taxes	15	22
Comprehensive income	751	392
Comprehensive income	$ 751	$ 392
Net income per common share - basic (in Dollars per share)	$ 0.03	$ 0.02
Net income per common share - diluted (in Dollars per share)	$ 0.03	$ 0.02
Current assets:
Cash and cash equivalents	$ 10,400	$ 15,885	$ 10,400	$ 8,895	$ 16,324
Short term investments			2,759	2,754
Accounts receivable, net			5,499	6,964	6,964
Federal income tax receivable			0	169
Prepaid and other expenses			492	521
Total current assets			19,150	19,303
Property and equipment, net			577	456
Capitalized software development costs, net			3,731	3,743
Goodwill			12,712	12,712
Other assets			64	245
Total assets			50,261	50,180
Current liabilities:
Accounts payable			657	876
Accrued expenses			1,928	1,836
Deferred revenue			12,704	13,655	13,655
Total current liabilities			15,763	16,367
Deferred revenue, non-current portion			3,618	3,790	3,790
Other long term liabilities			163	147
Common stock			22	22
Additional paid-in capital			22,064	21,650
Treasury stock			(1,452)	(1,452)
Retained earnings			10,083	9,656
Total stockholders’ equity			30,717	29,876
Total liabilities and stockholders’ equity			$ 50,261	$ 50,180
Scenario, Previously Reported [Member]
Operating revenues:
Software licenses		2,299
Maintenance and support		4,497
Professional services		614
Total revenues		7,410
Costs of revenues
Software licenses		630
Maintenance and support		394
Professional services		569
Total costs of revenues		1,593
Gross Profit		5,817
Operating expenses
Sales and marketing		2,901
General and administrative		1,733
Research and development		627
Total other income (expense)		5,261
Income from operations		556
Interest income		33
Income before income taxes		589
Provision for income taxes		182
Net income		407
Bad debt expense		43
Depreciation and amortization		501
Stock-based compensation		222
Deferred taxes		(19)
Excess tax deficiency from exercise of share based compensation		(3)
Subtotal before changes in operating assets and liabilities		1,151
Accounts receivable		698
Prepaid expenses		34
Federal income taxes		165
Accrued interest receivable		(16)
Other assets		22
Accounts payable		(350)
Accrued expenses		(272)
Deferred revenues		(222)
Other long-term liabilities		(3)
Net cash provided by (used in) operating activities		1,207
Software development costs		(488)
Purchase of property and equipment		(90)
Net cash provided by (used in) investing activities		(578)
Proceeds from exercise of stock options		122
Tax deficiency (benefit) from stock-based compensation		3
Dividends paid		(315)
Net cash provided by (used in) financing activities		(190)
Net increase (decrease) in cash		439
Cash at beginning of period		15,885
Cash at end of period		16,324
Income taxes		22
Comprehensive income		407
Comprehensive income		$ 407
Net income per common share - basic (in Dollars per share)		$ 0.02
Net income per common share - diluted (in Dollars per share)		$ 0.02
Current assets:
Cash and cash equivalents		$ 16,324			16,324
Short term investments					3,270
Accounts receivable, net					5,340
Federal income tax receivable					35
Prepaid and other expenses					477
Total current assets					25,446
Property and equipment, net					517
Capitalized software development costs, net					4,040
Goodwill					12,712
Deferred tax asset, net					959
Other assets					38
Total assets					43,712
Current liabilities:
Accounts payable					489
Accrued expenses					1,621
Deferred revenue					11,672
Income taxes payable					34
Total current liabilities					13,816
Deferred revenue, non-current portion					3,718
Other long term liabilities					41
Common stock					21
Additional paid-in capital					19,930
Treasury stock					(1,452)
Retained earnings					7,638
Total stockholders’ equity					26,137
Total liabilities and stockholders’ equity					43,712
Restatement Adjustment [Member] | Other Liabilities [Member]
Current assets:
Federal income tax receivable					362
Total current assets					362
Total assets					362
Current liabilities:
Deferred revenue					(29)
Income taxes payable					62
Total current liabilities					33
Deferred revenue, non-current portion					68
Retained earnings					(585)
Total stockholders’ equity					(585)
Total liabilities and stockholders’ equity					(484)
Restatement Adjustment [Member] | Other Current Assets [Member]
Current assets:
Accounts receivable, net					(423)
Total current assets					(423)
Total assets					(423)
Current liabilities:
Deferred revenue					347
Total current liabilities					347
Deferred revenue, non-current portion					76
Total liabilities and stockholders’ equity					423
Restatement Adjustment [Member] | Other Current Liabilities [Member]
Current liabilities:
Income taxes payable					(96)
Total current liabilities					(96)
Other long term liabilities					96
Scenario, Actual [Member]
Operating revenues:
Software licenses		2,299
Maintenance and support		4,446
Professional services		642
Total revenues		7,387
Costs of revenues
Software licenses		630
Maintenance and support		394
Professional services		422
Total costs of revenues		1,446
Gross Profit		5,941
Operating expenses
Sales and marketing		3,048
General and administrative		1,733
Research and development		627
Total other income (expense)		5,408
Income from operations		533
Interest income		33
Income before income taxes		566
Provision for income taxes		174
Net income		392
Bad debt expense		43
Depreciation and amortization		501
Stock-based compensation		222
Deferred taxes		(19)
Excess tax deficiency from exercise of share based compensation		(3)
Subtotal before changes in operating assets and liabilities		1,136
Accounts receivable		916
Prepaid expenses		34
Federal income taxes		150
Accrued interest receivable		(16)
Other assets		22
Accounts payable		(350)
Accrued expenses		(272)
Deferred revenues		(416)
Other long-term liabilities		3
Net cash provided by (used in) operating activities		1,207
Software development costs		(488)
Purchase of property and equipment		(90)
Net cash provided by (used in) investing activities		(578)
Proceeds from exercise of stock options		122
Tax deficiency (benefit) from stock-based compensation		3
Dividends paid		(315)
Net cash provided by (used in) financing activities		(190)
Net increase (decrease) in cash		439
Cash at beginning of period		15,885
Cash at end of period		16,324
Income taxes		22
Comprehensive income		392
Comprehensive income		$ 392
Net income per common share - basic (in Dollars per share)		$ 0.02
Net income per common share - diluted (in Dollars per share)		$ 0.02
Current assets:
Cash and cash equivalents		$ 16,324			16,324
Short term investments					3,270
Accounts receivable, net					4,917
Federal income tax receivable					397
Prepaid and other expenses					477
Total current assets					25,385
Property and equipment, net					517
Capitalized software development costs, net					4,040
Goodwill					12,712
Deferred tax asset, net					959
Other assets					38
Total assets					43,651
Current liabilities:
Accounts payable					489
Accrued expenses					1,621
Deferred revenue					11,990
Total current liabilities					14,100
Deferred revenue, non-current portion					3,862
Other long term liabilities					137
Common stock					21
Additional paid-in capital					19,930
Treasury stock					(1,452)
Retained earnings					7,053
Total stockholders’ equity					25,552
Total liabilities and stockholders’ equity					$ 43,651
Operating Income (Loss) [Member] | Restatement Adjustment [Member]
Operating expenses
Net income		(15)
Subtotal before changes in operating assets and liabilities		(15)
Federal income taxes		(9)
Deferred revenues		(412)
Net cash provided by (used in) operating activities		(436)
Other Current Assets [Member] | Restatement Adjustment [Member]
Operating expenses
Accounts receivable		218
Deferred revenues		218
Net cash provided by (used in) operating activities		436
Other Current Liabilities [Member] | Restatement Adjustment [Member]
Operating expenses
Federal income taxes		(6)
Other long-term liabilities		6
Sales [Member] | Restatement Adjustment [Member]
Operating revenues:
Maintenance and support		(23)
Total revenues		(23)
Costs of revenues
Gross Profit		(23)
Operating expenses
Income from operations		(23)
Income before income taxes		(23)
Provision for income taxes		(8)
Net income		(15)
Comprehensive income		(15)
Comprehensive income		(15)
Cost of Sales [Member] | Restatement Adjustment [Member]
Costs of revenues
Professional services		(147)
Total costs of revenues		(147)
Gross Profit		147
Operating expenses
Sales and marketing		147
Total other income (expense)		147
Selling, General and Administrative Expenses [Member] | Restatement Adjustment [Member]
Operating revenues:
Maintenance and support		(28)
Professional services		$ 28

5. Accounts Receivab

5. Accounts Receivable (Details) - Schedule of Accounts, Notes, Loans and Financing Receivable - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2016
Schedule of Accounts, Notes, Loans and Financing Receivable [Abstract]
Total invoices issued and unpaid	$ 6,259		$ 7,680
Less: Unpaid invoices relating to M&S contracts with a start date subsequent to the balance sheet date	(410)		(381)
Gross accounts receivable	5,849		7,299
Allowance for sales returns and doubtful accounts	(350)		(335)
Accounts receivable, net	$ 5,499	$ 6,964	$ 6,964

6. Capitalized Softw

6. Capitalized Software Development Costs (Details) - Schedule of Finite-Lived Intangible Assets - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Schedule of Finite-Lived Intangible Assets [Abstract]
Gross capitalized cost	$ 7,714	$ 7,252
Accumulated amortization	(3,983)	(3,509)
Net balance	$ 3,731	$ 3,743

6. Capitalized Sof33

6. Capitalized Software Development Costs (Details) - Finite-lived Intangible Assets Amortization Expense - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Finite-lived Intangible Assets Amortization Expense [Abstract]
Amount capitalized	$ 462	$ 488
Amortization expense	$ (474)	$ (430)

6. Capitalized Sof34

6. Capitalized Software Development Costs (Details) - Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
6. Capitalized Software Development Costs (Details) - Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Line Items]
Gross capitalized amount at March 31, 2017	$ 7,714	$ 7,252
Computer Software, Intangible Asset [Member] | Released Products [Member]
6. Capitalized Software Development Costs (Details) - Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Line Items]
Gross capitalized amount at March 31, 2017	6,171
Computer Software, Intangible Asset [Member] | Unreleased Products [Member]
6. Capitalized Software Development Costs (Details) - Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Line Items]
Gross capitalized amount at March 31, 2017	$ 1,543

6. Capitalized Sof35

6. Capitalized Software Development Costs (Details) - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense $ in Thousands	Mar. 31, 2017USD ($)
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Abstract]
Nine months ending December 31, 2017	$ 1,116
2,018	856
2,019	216
2,020	0
Total	$ 2,188

7. Deferred Revenue (D

7. Deferred Revenue (Details) - Schedule of Deferred Revenue, by Arrangement, Disclosure - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2016
Schedule of Deferred Revenue, by Arrangement, Disclosure [Abstract]
Total invoiced for M&S contracts for which revenue will be recognized in future periods	$ 16,732		$ 17,826
Less: Unpaid invoices relating to M&S agreements with a start date subsequent to the balance sheet date	(410)		(381)
Total deferred revenue	16,322		17,445
Deferred revenue, current portion	12,704	$ 13,655	13,655
Deferred revenue, non-current portion	$ 3,618	$ 3,790	$ 3,790

8. Stock Options, Restricted 37

8. Stock Options, Restricted Stock and Share-Based Compensation (Details)	3 Months Ended
	Mar. 31, 2017shares
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
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	340,000
Employee Stock Option [Member] | Long-Term Equity Incentive Plans [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
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period	90 days
Stock-Based Awards [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	5,000,000
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	4,329,500

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	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Abstract]
Share-based compensation expense	$ 324	$ 222

8. Stock Options, 39

8. 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, 2017	Dec. 31, 2016
Schedule of Share-based Compensation, Stock Options, Activity [Abstract]
Number of Shares, Outstanding		2,407,005
Weighted Average Exercise Price, Outstanding		$ 3
Weighted Average Remaining Contractual Term, Outstanding	7 years 204 days	7 years 69 days
Aggregate Intrinsic Value, Outstanding		$ 2,574
Number of Shares, Exercisable	1,245,214
Weighted Average Exercise Price, Exercisable	$ 2.59
Weighted Average Remaining Contractual Term, Exercisable	5 years 62 days
Aggregate Intrinsic Value, Exercisable	$ 1,681
Number of Shares, Granted	660,000
Weighted Average Exercise Price, Granted	$ 3.76
Number of Shares, Forfeitures	(86,080)
Weighted Average Exercise Price, Forfeitures	$ 3.87
Number of Shares, Exercised	(49,500)
Weighted Average Exercise Price, Exercised	$ 1.82
Number of Shares, Outstanding	2,931,425
Weighted Average Exercise Price, Outstanding	$ 3.17
Aggregate Intrinsic Value, Outstanding	$ 2,238

8. Stock Options, 40

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 ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
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)	$ 1.47	$ 1.65
Intrinsic value of options exercised	$ 100,386	$ 71,745
Cash received from stock options exercised	$ 90,114	$ 121,671
Number of options that vested (in Shares)	295,124	193,866
Fair value of options that vested	$ 450,336	$ 248,148
Unrecognized compensation expense related to non-vested options at end of period	$ 2,279,284	$ 1,673,156
Weighted average years over which non-vested option expense will be recognized	2 years 124 days	2 years 6 months

8. Stock Options, 41

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	3 Months Ended
	Mar. 31, 2017$ / sharesshares
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Underlying Shares Outstanding (in Shares) | shares	2,931,425
Options Exercisable, Underlying Shares Outstanding (in Shares) | shares	1,245,214
$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
Options Outstanding, Underlying Shares Outstanding (in Shares) | shares	87,100
Options Outstanding, Weighted Average Remaining Contractual Life	3 years 116 days
Options Outstanding, Weighted Average Exercise Price	$ 1.07
Options Exercisable, Underlying Shares Outstanding (in Shares) | shares	87,100
Options Exercisable, Weighted Average Exercise Price	$ 1.07
$1.47 - $2.32 [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	$ 2.32
Options Outstanding, Underlying Shares Outstanding (in Shares) | shares	459,745
Options Outstanding, Weighted Average Remaining Contractual Life	4 years 233 days
Options Outstanding, Weighted Average Exercise Price	$ 1.83
Options Exercisable, Underlying Shares Outstanding (in Shares) | shares	458,385
Options Exercisable, Weighted Average Exercise Price	$ 1.83
$2.34 - $3.52 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, Lower Limit	2.34
Range of Exercise Prices, Upper Limit	$ 3.52
Options Outstanding, Underlying Shares Outstanding (in Shares) | shares	1,144,680
Options Outstanding, Weighted Average Remaining Contractual Life	8 years 10 days
Options Outstanding, Weighted Average Exercise Price	$ 3.22
Options Exercisable, Underlying Shares Outstanding (in Shares) | shares	525,179
Options Exercisable, Weighted Average Exercise Price	$ 3.02
$3.53 - $4.25 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, Lower Limit	3.53
Range of Exercise Prices, Upper Limit	$ 4.25
Options Outstanding, Underlying Shares Outstanding (in Shares) | shares	1,239,900
Options Outstanding, Weighted Average Remaining Contractual Life	8 years 6 months
Options Outstanding, Weighted Average Exercise Price	$ 3.76
Options Exercisable, Underlying Shares Outstanding (in Shares) | shares	174,550
Options Exercisable, Weighted Average Exercise Price	$ 4.05

8. Stock Options, 42

8. Stock Options, Restricted Stock and Share-Based Compensation (Details) - Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Abstract]
Expected volatility	45.00%	56.00%
Expected annual dividend yield	1.50%	1.50%
Risk free rate of return	1.94%	1.53%
Expected option term (years)	6 years	6 years

8. Stock Options, 43

8. 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, 2017	Mar. 31, 2016
Unrecognized compensation expense for non-vested shares as of March 31, 2017
Weighted average number of months over which expense is expected to be recognized	2 years 124 days	2 years 6 months
Restricted Stock [Member]
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
Grant date fair value per share, restricted shares outstanding	$ 3.31
Unrecognized compensation expense for non-vested shares as of March 31, 2017
Expense to be recognized in future periods	$ 25,322
Weighted average number of months over which expense is expected to be recognized	1 year 73 days
Number of shares, restricted shares outstanding	80,000
Grant date fair value per share, restricted shares outstanding	$ 3.31

9. Income Taxes (Details)

9. Income Taxes (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
9. Income Taxes (Details) [Line Items]
Deferred Tax Assets, Capital Loss Carryforwards	$ 1,099,000		$ 1,099,000
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	34.00%	34.00%
Research Tax Credit Carryforward [Member]
9. Income Taxes (Details) [Line Items]
Tax Credit Carryforward, Amount	$ 156,000
Minimum [Member] | Research Tax Credit Carryforward [Member]
9. Income Taxes (Details) [Line Items]
Franchise Tax Credit Carryforwards Expiration Date	2,034
Maximum [Member] | Research Tax Credit Carryforward [Member]
9. Income Taxes (Details) [Line Items]
Franchise Tax Credit Carryforwards Expiration Date	2,036
Domestic Tax Authority [Member]
9. Income Taxes (Details) [Line Items]
Operating Loss Carryforwards	$ 225,000
Deferred Tax Assets, Capital Loss Carryforwards	$ 3,231,000
Domestic Tax Authority [Member] | Minimum [Member]
9. Income Taxes (Details) [Line Items]
Federal Net Operating Loss Carryforwards Expiration Year	2,030
Domestic Tax Authority [Member] | Maximum [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	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Schedule of Components of Income Tax Expense (Benefit) [Abstract]
Federal	$ 519	$ 172
Federal	(238)	(7)
Federal	281	165
State	51	21
State	(10)	(12)
State	41	9
Total	570	193
Total	(248)	(19)
Total	$ 322	$ 174

9. Income Taxes (46

9. Income Taxes (Details) - Schedule of Deferred Tax Assets and Liabilities - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Deferred tax assets:
Deferred revenue	$ 1,331	$ 1,228
Capital loss carryforward	1,099	1,099
Share-based compensation	619	578
Compensation and benefits	270	176
Texas franchise tax R&D credit	156	153
Allowance for doubtful accounts	119	114
Net operating loss carryforward	76	91
Other	62	51
Capital loss carryforward	(1,099)	(1,099)
Texas franchise tax R&D credit	(156)	(153)
Total deferred tax assets	2,477	2,238
Deferred tax liabilities:
Intangible assets	1,285	1,289
Depreciation	2	7
Total gross deferred tax liabilities	1,287	1,296
Net deferred tax assets	$ 1,190	$ 942

9. Income Taxes (47

9. Income Taxes (Details) - Schedule of Unrecognized Tax Benefits Roll Forward - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Schedule of Unrecognized Tax Benefits Roll Forward [Abstract]
Balance at beginning of period	$ 116	$ 90
Increases for tax positions related to the current year	4	6
Increases for tax positions related to prior years	16	0
Decreases for tax positions related to prior years	0	0
Decreases due to settlements related to prior years	0	0
Balance at end of period	$ 136	$ 96

9. Income Taxes (48

9. Income Taxes (Details) - Schedule of Effective Income Tax Rate Reconciliation - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Schedule of Effective Income Tax Rate Reconciliation [Abstract]
Income tax expense (benefit) at federal statutory rate	$ 365	$ 193
State taxes, net of federal benefit	24	2
Stock based compensation	59	16
Other	(22)	9
R&D tax credit uncertain tax position (net)	(110)	(32)
Research and development credit	20	6
Domestic production activities deduction	(14)	(20)
Income tax expense (benefit) per the statement of operations	$ 322	$ 174

10. Earnings per C

10. 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, 2017	Mar. 31, 2016
Numerator for basic and diluted earnings per share:
Net income (in Dollars)	$ 751	$ 392
Denominators for basic and diluted earnings per share:
Weighted average shares outstanding - basic	21,544	21,033
Dilutive potential common shares
Stock options and awards	479	619
Denominator for diluted earnings per share	22,023	21,652
Net income per common share - basic (in Dollars per share)	$ 0.03	$ 0.02
Net income per common share – diluted (in Dollars per share)	$ 0.03	$ 0.02

11. Dividends (De

11. Dividends (Details) - Schedule of Dividends Payable - $ / shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Schedule of Dividends Payable [Abstract]
Dividend per share of common stock	$ 0.015	$ 0.015
Dividend record date	Feb. 23, 2017	Feb. 23, 2016
Dividend payment date	Mar. 8, 2017	Mar. 8, 2016

12. Commitments and Contingen51

12. Commitments and Contingencies (Details) $ in Millions	Mar. 31, 2017USD ($)
Commitments and Contingencies Disclosure [Abstract]
Other Commitment	$ 1.9

13. Concentration of Business52

13. Concentration of Business Volume and Credit Risk (Details) - Customer Concentration Risk [Member]	3 Months Ended
	Mar. 31, 2017
Sales Revenue, Net [Member]
13. Concentration of Business Volume and Credit Risk (Details) [Line Items]
Concentration Risk, Percentage	14.00%
Accounts Receivable [Member]
13. Concentration of Business Volume and Credit Risk (Details) [Line Items]
Concentration Risk, Percentage	16.00%

14. Segment and Geographic Di53

14. Segment and Geographic Disclosures (Details)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
14. Segment and Geographic Disclosures (Details) [Line Items]
Number of Operating Segments	1
Sales Revenue, Net [Member] | Customer Concentration Risk [Member]
14. Segment and Geographic Disclosures (Details) [Line Items]
Concentration Risk, Percentage	14.00%
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | UNITED STATES
14. Segment and Geographic Disclosures (Details) [Line Items]
Concentration Risk, Percentage	78.00%	73.00%