Globalscape (GSB) 10-K/A 14 Jun 18 2016 FY Annual report (amended) Financial data

Document And Entity Information

Document And Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2016	Mar. 20, 2017	Jun. 30, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	GLOBALSCAPE INC
Document Type	10-K
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		21,566,831
Entity Public Float			$ 50,513,026
Amendment Flag	true
Amendment Description	GlobalSCAPE, Inc. (together with its wholly-owned subsidiary, "GlobalSCAPE", the "Company" or "we") is filing this Amendment No. 1 on Form 10-K/A (this "Amendment" or "Form 10-K/A") to its Annual Report on Form 10-K for the year ended December 31, 2016, originally filed March 27, 2017 (the "Original Filing"). This Amendment amends and restates (the "Restatement") the following indicated parts of the Original Filing:Part I, Item 1A: Risk Factors;Part I, Item 3: Legal Proceedings;Part II, Item 6: The selected financial data as of December 31, 2016 and 2015, and for the years then ended;Part II, Item 7: Management's discussion and analysis of our financial condition and results of operations as of December 31, 2016 and 2015, and for the years then ended;Part II, Item 8: Our consolidated balance sheets as of December 31, 2016 and 2015, and the related consolidated statements of operations and comprehensive income, stockholders' equity, and cash flows for the years then ended;Part II, Item 9: Changes in and Disagreements with Accountants on Accounting and Financial Disclosure;Part II, Item 9A: Controls and Procedures; andPart IV, Item 15: Exhibits and Financial Statement Schedules.The Restatement results from our determination subsequent to the filing date of the Original Filing that we incorrectly recognized revenue during the fiscal year ended December 31, 2016 in connection with the sales transactions described below as well as other transactions identified by the Audit Committee's investigation and management's analysis.As a result of the Restatement, no reliance should be placed on financial information we have previously furnished or filed on Forms 10-K, 10-Q (including 10-Q/A) or 8-K, along with all related earnings press releases and similar communications issued by us, subsequent to November 10, 2016. Such items include, but are not limited to:Form 8-K announcing our financial results for the fourth quarter of 2016 and for the fiscal year ended December 31, 2016, furnished on January 26, 2017.Form 10-K for the fiscal year ended December 31, 2016, filed on March 27, 2017.Form 8-K announcing our financial results for the first quarter of 2017, furnished on April 27, 2017.Form 10-Q for the quarterly period ended March 31, 2017, filed on May 12, 2017, as amended by Amendment No. 1 on Form 10-Q/A, filed on May 26, 2017.In the event there are discrepancies between this Amendment and previous reports, press releases and similar communications, the information in this Amendment shall control.
Entity Central Index Key	1,112,920
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Smaller Reporting Company
Entity Well-known Seasoned Issuer	No
Document Period End Date	Dec. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	FY

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 8,895	$ 15,885
Short term investments	2,754	3,254
Accounts receivable, net	6,288	5,938
Federal income tax receivable	292	545
Prepaid expenses	531	511
Total current assets	18,760	26,133
Long term investments	12,779	0
Property and equipment, net	456	498
Capitalized software development costs, net	3,743	3,982
Goodwill	12,712	12,712
Deferred tax asset	1,050	940
Other assets	245	60
Total assets	49,745	44,325
Current liabilities:
Accounts payable	930	839
Accrued expenses	1,603	1,893
Deferred revenue	13,655	12,460
Total current liabilities	16,188	15,192
Deferred revenue, non-current portion	3,790	3,808
Other long term liabilities	152	134
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, 21,920,912 and 21,303,467 shares issued at December 31, 2016 and December 31, 2015, respectively	22	21
Additional paid-in capital	21,756	19,647
Treasury stock, 403,581 shares, at cost, at December 31, 2016 and December 31, 2015	(1,452)	(1,452)
Retained earnings	9,289	6,975
Total stockholders’ equity	29,615	25,191
Total liabilities and stockholders’ equity	$ 49,745	$ 44,325

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parentheticals) - $ / shares	Dec. 31, 2016	Dec. 31, 2015
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	21,920,912	21,303,467
Treasury stock, shares	403,581	403,581

Consolidated Statements of Oper

Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Operating revenues:
Software licenses	$ 11,243	$ 12,023
Maintenance and support	18,668	16,489
Professional services	2,684	2,223
Total revenues	32,595	30,735
Costs of revenues
Software licenses	3,071	2,428
Maintenance and support	1,537	1,470
Professional services	1,684	1,395
Total costs of revenues	6,292	5,293
Gross Profit	26,303	25,442
Operating expenses
Sales and marketing	11,558	10,431
General and administrative	6,947	6,131
Research and development	2,571	2,571
Total operating expenses	21,076	19,133
Income from operations	5,227	6,309
Other income (expense), net:
Interest expense	0	(4)
Interest income	159	82
Total other income (expense), net	159	78
Income before income taxes	5,386	6,387
Provision for income taxes	1,801	1,861
Net income	3,585	4,526
Comprehensive income	$ 3,585	$ 4,526
Net income per common share - basic (in Dollars per share)	$ 0.17	$ 0.22
Net income per common share - diluted (in Dollars per share)	$ 0.17	$ 0.21
Weighted average shares outstanding:
Basic (in Shares)	21,126	20,824
Diluted (in Shares)	21,677	21,366

Consolidated Statement of Stock

Consolidated Statement of Stockholders' Equity - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Treasury Stock [Member]	Retained Earnings [Member]	Total
Balance (Scenario, Previously Reported [Member]) at Dec. 31, 2014	$ 21	$ 18,370	$ (1,452)	$ 3,889	$ 20,828
Balance at Dec. 31, 2014	$ 21	18,370	(1,452)	3,389	20,328
Balance (in Shares) (Scenario, Previously Reported [Member]) at Dec. 31, 2014	20,989,267
Balance (in Shares) at Dec. 31, 2014	20,909,267
Shares issued upon exercise of stock options		508			$ 508
Shares issued upon exercise of stock options (in Shares)	314,200				314,200
Tax (deficiency) from stock-based compensation		58			$ 58
Stock-based compensation expense, stock options		464			464
Stock-based compensation expense, restricted stock		247			247
Stock-based compensation expense, restricted stock (in Shares)	80,000
Common stock cash dividends				(940)	(940)
Net income | Scenario, Previously Reported [Member]					4,598
Net income				4,526	4,526
Restatement | Restatement Adjustment [Member]					(72)
Balance (Scenario, Previously Reported [Member]) at Dec. 31, 2015					25,698
Balance at Dec. 31, 2015	$ 21	19,647	(1,452)	6,975	25,191
Balance (in Shares) at Dec. 31, 2015	21,303,467
Shares issued upon exercise of stock options	$ 1	1,119			$ 1,120
Shares issued upon exercise of stock options (in Shares)	537,445				537,445
Tax (deficiency) from stock-based compensation		(24)			$ (24)
Stock-based compensation expense, stock options		741			741
Stock-based compensation expense, restricted stock		273			273
Stock-based compensation expense, restricted stock (in Shares)	80,000
Common stock cash dividends				(1,271)	(1,271)
Net income | Scenario, Previously Reported [Member]					3,951
Net income				3,585	3,585
Restatement | Restatement Adjustment [Member]					(366)
Balance (Scenario, Previously Reported [Member]) at Dec. 31, 2016					29,876
Balance at Dec. 31, 2016	$ 22	$ 21,756	$ (1,452)	$ 9,289	$ 29,615
Balance (in Shares) at Dec. 31, 2016	21,920,912

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Operating Activities:
Net income	$ 3,585	$ 4,526
Adjustments to reconcile net income to net cash provided by operating activities:
Bad debt expense	182	(7)
Depreciation and amortization	2,045	1,553
Stock-based compensation	1,014	711
Deferred taxes	(110)	(248)
Excess tax deficiency from exercise of share based compensation	24	(58)
Subtotal before changes in operating assets and liabilities	6,740	6,477
Changes in operating assets and liabilities:
Accounts receivable	(532)	7
Prepaid expenses	(20)	(23)
Federal income taxes	229	(233)
Accrued interest receivable	(163)	(69)
Other assets	(185)	40
Accounts payable	91	(272)
Accrued expenses	(290)	303
Deferred revenues	1,177	708
Other long-term liabilities	18	82
Net cash provided by operating activities	7,065	7,020
Investing Activities:
Software development costs	(1,538)	(1,967)
Purchase of property and equipment	(226)	(152)
Purchase of certificates of deposit	(12,116)	0
Net cash (used in) investing activities	(13,880)	(2,119)
Financing Activities:
Proceeds from exercise of stock options	1,120	508
Tax deficiency (benefit) from stock-based compensation	(24)	58
Dividends paid	(1,271)	(940)
Net cash (used in) financing activities	(175)	(374)
Net increase (decrease) in cash	(6,990)	4,527
Cash at beginning of period	15,885	11,358
Cash at end of period	8,895	15,885
Cash paid during the period for:
Interest	0	0
Income taxes	$ 1,638	$ 2,146

1. Nature of Business and Corpo

1. Nature of Business and Corporate Structure	12 Months Ended
	Dec. 31, 2016
Disclosure Text Block [Abstract]
Nature of Operations [Text Block]	1. Nature of Business and Corporate Structure We provide secure information exchange capabilities for enterprises and consumers through the development and distribution of software, delivery of managed and hosted solutions, and provisioning of associated services. Our solution portfolio facilitates transmission of critical information such as financial data, medical records, customer files, vendor files, personnel files, transaction activity, and other similar documents between diverse and geographically separated network infrastructures while supporting a range of information protection approaches to meet privacy and other security requirements. In addition to enabling secure, flexible transmission of critical information using servers, desktop and notebook computers, and a wide range of network-enabled mobile devices, our products also provide customers with the ability to monitor and audit file transfer activities. Our primary product is Enhanced File Transfer, or EFT. We have other products that complement our EFT product. Throughout these notes unless otherwise noted, our references to 2016 and 2015 refer to the years ended December 31, 2016 and 2015, respectively.

2. Significant Accounting Polic

2. Significant Accounting Policies	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Significant Accounting Policies [Text Block]	2. Significant Accounting Policies Basis of Presentation We follow accounting standards set by the Financial Accounting Standards Board. This board sets GAAP, which 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 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. Principles of Consolidation The accompanying consolidated financial statements of GlobalSCAPE, Inc. and its wholly-owned subsidiary (collectively referred to as the “Company” or “we”) are prepared in conformity with GAAP. All intercompany accounts and transactions have been eliminated. 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 Agreements In previously issued financial statements, we amortized deferred revenue related to M&S agreements by recording a full month of amortization in the first month of an agreement. We used that method based on our intent to match revenue from our M&S agreements 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 agreement 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 agreement but yield differing amounts of revenue being recognized in the first month and last month of an M&S agreement. We have changed our method of amortizing deferred revenue related to M&S agreements such that our consolidated statements of operations and balance sheets included herein are now prepared using the specific number of days method. This change had the effect of decreasing M&S revenue and net income on our consolidated statements of operations for 2016 and 2015 by immaterial amounts. It increased the amount of our deferred revenue on our consolidated balance sheets as of December 31, 2016 and 2015, which will result in us reporting more revenue in periods subsequent to 2016 than we would have reported under the previous method. 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, we previously recorded an account receivable and deferred revenue for these invoices as of the date of the invoice. We believe a reasonable, alternate and more conservative method is to wait until the commencement date of the M&S has 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 consolidated balance sheets included herein are now prepared using that method. This change has the effect of decreasing our reported amounts of accounts receivable and deferred revenue 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 them 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. We believe these expenses are now more appropriately classified as part of sales and marketing expense and have now classified them as such. 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 consolidated financial statements taken as a whole. In assessing the materiality of this reserve 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. With respect to the above items, we have restated our consolidated financial statements as of December 31, 2015, and for the year then ended. See Note 15 for the impact of all the adjustments to our consolidated financial statements in our Original Filing to correct those consolidated financial statements for the effects of the adjustments described above. Revenue Recognition We develop, market and sell software products. We recognize revenue from a sale transaction when the following conditions are met: · Persuasive evidence of an arrangement exists. · Delivery has occurred or services have been rendered. · The amount of the sale is fixed or determinable. · Collection of the sale amount is reasonably assured. For a sale transaction not meeting any one of these four criteria, we defer recognition of revenue related to that transaction until all the criteria are met. We earn the majority of our software license revenue from software products sold under perpetual software license agreements. At the time our customers purchase these products, they typically also purchase a product maintenance and support, or M&S, agreement. These transactions are multiple element software sales for which we assess the presence of 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 agreements 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 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. Short Term Investments Short-term investments consist of certificates of deposit held with financial institutions with contractual maturity dates less than one year from the balance sheet date. The Company has the intent and ability to hold these investments until their maturity dates and therefore accounts for them as held-to-maturity. These certificates of deposit are stated at amortized cost, which approximates fair value of these investments. Long-Term Investments Long-term investments consist of certificates of deposit held with financial institutions with contractual maturity dates greater than one year from the balance sheet date. The Company has the intent and ability to hold these investments until their maturity dates and therefore accounts for them as held-to-maturity. These certificates of deposit are stated at amortized cost, which approximates fair value of these investments. Property and Equipment Property and equipment is comprised of furniture and fixtures, software, computer equipment and leasehold improvements which are recorded at cost and depreciated using the straight-line method over their estimated useful lives. Furniture, fixtures and equipment have a useful life of five to seven years, computer equipment and software have a useful life of three years and leasehold improvements have a useful life that is the shorter of the term of the lease under which the improvements were made or the estimated useful life of the asset. Expenditures for maintenance and repairs are charged to operations as incurred. 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 detailed program design or a working model of that software product, we capitalize production costs incurred for that software product from that point forward until it is ready for general release to the public. Thereafter, we amortize capitalized software production costs to expense using the straight-line method over the estimated useful life of that product, which is generally three years. We periodically assess the carrying value of capitalized software development costs relative to our estimates of realizability through sales of products in the marketplace. Cost of revenue Cost of revenue consists of expenses associated with the production, delivery and support of the products and services we sell. Cost of license revenue consists primarily of amortization of the capitalized software development costs we incur when producing our software products, royalties we pay to use software developed by others for certain features of our products, and fees we pay to third parties who provide services supporting our SaaS and cloud-based subscription solutions. Cost of M&S revenue and cost of professional services revenue consist primarily of salaries and related costs of our employees and third parties we use to deliver these services. 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 approximately $1.9 million and $1.6 million in 2016 and 2015, respectively. Share-Based Compensation We measure the cost of share-based payment transactions at the grant date based on the calculated fair value of the award. We recognize this cost as an expense ratably over the recipient’s requisite service period during which that award vests or becomes unrestricted. For stock option awards, we estimate their fair value at the grant date using the Black-Scholes option-pricing model considering the following factors: • We estimate expected volatility based on historical volatility of our common stock. • We use primarily the simplified method to derive an expected term which represents an estimate of the time options are expected to remain outstanding. We use this method because our options are plain-vanilla options, and we believe our historical option exercise experience is not adequately indicative of our future expectations. • We base the risk-free rate for periods within the contractual life of the option on the U.S. treasury yield curve in effect at the time of grant. • We estimate a dividend yield based on our historical and expected future dividend payments. For restricted stock awards, we use the quoted price of our common stock on the grant date as the fair value of the award. Income Taxes We account for income taxes using the asset and liability method. We record deferred tax assets and liabilities based on the difference between the tax bases of assets and liabilities and their carrying amount for financial reporting purposes, as measured by the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Deferred tax assets and liabilities are carried on the balance sheet with the presumption that they will be realizable in future periods in which we generate taxable income. We assess the likelihood that deferred tax assets will be realized from future taxable income. Based on this assessment, we provide any necessary valuation allowance on our balance sheet with a corresponding increase in the tax provision on our statement of operations. Any valuation allowances we establish are determined based upon a number of assumptions, judgments, and estimates, including forecasted earnings, future taxable income, and the relative proportions of revenue and income before taxes in the various domestic jurisdictions in which we operate. We account for uncertainty in income taxes using a two-step process to determine the amount of tax benefit to be recognized. First, we evaluate the tax position to determine the likelihood that it will be sustained upon external examination. If the tax position is deemed “more-likely-than-not” to be sustained, we assess the tax position to determine the amount of benefit to recognize in the financial statements. The amount of the benefit we recognize is the largest amount that we believe has a greater than 50% likelihood of being realized upon ultimate settlement. Unrecognized tax benefits represent tax positions for which reserves have been established. Earnings Per Share We compute basic earnings per share using the weighted-average number of common shares outstanding during the periods. We compute diluted earnings per share using the weighted-average number of common shares outstanding plus the number of common shares that would be issued assuming conversion of all potentially dilutive common shares outstanding. Awards of non-vested options are considered potentially dilutive common shares for the purpose of computing earnings per common share. We apply the treasury stock method to non-vested options under which the assumed proceeds include the amount the employee must pay to exercise the option plus the amount of unrecognized cost attributable to future periods less any expected tax benefits. Recent accounting pronouncements The Financial Accounting Standards Board, or FASB, has issued the following Accounting Standard Updates (ASU) that we believe may be relevant to our business and to the preparation of our financial statements: ASU 2017-04, Intangibles – Goodwill and Other (issued January 2017) - ASU 2016-13, Financial Instruments – Credit Losses (issued June 2016) ASU 2016-09, Improvements to Employee Share-Based Payment Accounting (issued March 2016) 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 have assessed the effect of ASU 2014-09 on the amount and timing of revenue we expect to recognize from our business activities in 2018 and later. We do not expect there to be material differences in the amount and timing of revenue we recognize from similar business activities in future periods determined by applying ASU 2014-09 as compared to revenue we would have otherwise recognized by applying GAAP as it existed prior to 2018. We have determined that the application of ASU 2014-09 will have a material effect on the timing of our recording of expenses resulting from the incremental costs we incur to obtain a contract with a customer to deliver goods and services. These incremental costs consist primarily of sales commissions paid to our sales people and royalties on certain of our products paid to third parties. For years ended December 31, 2017, and earlier, we recorded the full amount of the sales commission and royalties paid on the full value of an M&S or SaaS contract as an expense on the inception date of the M&S contract. Under ASU 2014-09, we will account for such costs we incur in 2018 and later as follows: · If these costs are associated with products and services for which we recognize revenue at a point in time (primarily sales of perpetual software licenses and professional services), we will expense these costs in full at the time we recognize that revenue. · If these costs are associated with services for which we recognize revenue over time (primarily sales of M&S and SaaS subscriptions) for which we believe it is likely that the contract for those services will be renewed for additional terms in the future, provided we deem these costs to be recoverable, we will record these costs as deferred expense asset and amortize that cost to expense as follows: o For the portion of the cost that we determine benefits us primarily only over the term of the specific underlying contract currently in force (such as the term of an M&S contract), we will recognize expense ratably each month over that term. o For the portion of the cost that we determine benefits us over an overall customer relationship that is likely to span period of time that is longer than an initial contract term (for example, an M&S contract renewed for multiple terms in the future), we will recognize expense ratably monthly over the estimated life of the customer relationship. Our application of ASU 2014-09 to incremental costs we incur to obtain a contract with a customer will result in us recording, as an asset as of January 1, 2018, a deferred expense of approximately $1.2 million applicable to contracts with customers in effect as of that date. We previously reported this amount as an expense in our financial statements for periods ending on and before December 31, 2017. We estimate that we will amortize this amount to expense at the rate of approximately $186,000 per quarter beginning in 2018. The incremental costs we incur to obtain contracts with customers during 2018 and later years, and the amount of such costs we record as a deferred expense and amortize to expense in subsequent periods, will depend upon the nature and scope of our future business activities, the nature and mix of the products and services we sell, the compensation plans we have in place for our sales people, and the royalty arrangements we enter into with third parties.

3. Accounts Receivable, Net

3. Accounts Receivable, Net	12 Months Ended
	Dec. 31, 2016
Receivables [Abstract]
Loans, Notes, Trade and Other Receivables Disclosure [Text Block]	3. Accounts Receivable, Net 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 6) 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 consolidated financial statements. Accordingly, we determine our accounts receivable as follows ($ in thousands): December 31, 2016 2015 Total invoices issued and unpaid $ 6,932 $ 6,407 Less: Unpaid invoices relating to M&S contracts with a start date subsequent to the balance sheet date (381 ) (206 ) Gross accounts receivable 6,551 6,201 Allowance for sales returns and doubtful accounts (263 ) (263 ) Accounts receivable, net $ 6,288 $ 5,938 The activity in our allowance for doubtful accounts and sales returns has been as follows ($ in thousands): Year Ended December 31, 2016 2015 Balance, beginning of period $ 263 $ 511 Provision for doubtful accounts and sales returns 182 (7 ) Accounts written off (182 ) (241 ) Balance, end of period $ 263 $ 263

4. Property and Equipment, Net

4. Property and Equipment, Net	12 Months Ended
	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment Disclosure [Text Block]	4. Property and Equipment, Net Property and equipment, at cost, consists of the following ($ in thousands): December 31, 2016 2015 Furniture and fixtures $ 636 $ 620 Software 651 638 Equipment 1,411 1,218 Leasehold improvements 559 559 3,257 3,035 Less accumulated depreciation (2,801 ) (2,537 ) Property and equipment, net $ 456 $ 498

5. Capitalized Software Develop

5. Capitalized Software Development Costs, Net	12 Months Ended
	Dec. 31, 2016
Disclosure Text Block [Abstract]
Intangible Assets Disclosure [Text Block]	5. Capitalized Software Development Costs, Net Our capitalized software development costs balances and activity is as follows: ($ in thousands): December 31, 2016 2015 Gross capitalized cost $ 7,252 $ 5,714 Accumulated amortization (3,509 ) (1,732 ) Net balance $ 3,743 $ 3,982 Year Ended December 31, 2016 2015 Amount capitalized $ 1,538 $ 1,967 Amortization expense $ (1,777 ) $ (1,283 ) Released Unreleased Products Products Gross capitalized amount at December 31, 2016 $ 6,171 $ 1,081 Accumulated amortization $ (3,509 ) $ - Net balance $ 2,662 $ 1,081 Future amortization expense for the year ending December 31, 2017 $ 1,589 2018 856 2019 217 Total $ 2,662 The future amortization expense of the gross capitalized software development costs related to unreleased products will be determinable at a future date when those products are ready for general release to the public.

6. Deferred Revenue

6. Deferred Revenue	12 Months Ended
	Dec. 31, 2016
Deferred Revenue Disclosure [Abstract]
Deferred Revenue Disclosure [Text Block]	6. Deferred Revenue As described in Note 3 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): December 31, 2016 2015 Total invoiced for M&S contracts for which revenue will be recognized in future periods $ 17,826 $ 16,474 Less: Unpaid invoices relating to M&S agreements with a start date subsequent to the balance sheet date (381 ) (206 ) Total deferred revenue $ 17,445 $ 16,268 Deferred revenue, current portion $ 13,655 $ 12,460 Deferred revenue, non-current portion 3,790 3,808 Total deferred revenue $ 17,445 $ 16,268

7. Commitments and Contingencie

7. Commitments and Contingencies	12 Months Ended
	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies Disclosure [Text Block]	7. Commitments and Contingencies Leases We have an operating lease related to our office space. Minimum rental commitments under operating leases at December 31, 2016, are as follows ($ in thousands): Year Ending December 31, 2017 $ 360 2018 360 2019 120 Total $ 840 Rent expense under operating leases was $347,000 in both 2016 and 2015. We had a deferred rent liability of $31,000 at December 31, 2016, which we amortize to rent expense on a straight-line basis over the remaining life of the applicable lease. Severance Payments 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 approximately $1.9 million. Legal and Regulatory Matters As previously disclosed in the Company’s Current Report on Form 8-K filed on November 15, 2017, on August 9, 2017, a securities class action complaint, Anthony Giovagnoli v. GlobalSCAPE, Inc. inter alia On October 20, 2017, the Company received a demand letter from a stockholder seeking the inspection of books and records of the Company pursuant to Section 220 of the Delaware General Corporation Law (the “Section 220 Demand”). This stockholder’s stated purpose for the demand is, inter alia The Board has established a special litigation committee (“Special Litigation Committee”) consisting of Thomas Hicks and Frank Morgan to analyze and investigate claims that could potentially be asserted in stockholder derivative litigation related to facts connected to the claims and allegations asserted in the litigation related to the Restatement and the Section 220 Demand (the “Potential Derivative Litigation”). The Special Litigation Committee will determine what actions are appropriate and in the best interests of the Company, and decide whether it is in the best interests of the Company to pursue, dismiss, or consensually resolve any claims that may be asserted in the Potential Derivative Litigation. The Board determined that each member of the Special Litigation Committee is disinterested and independent with respect to the Potential Derivative Litigation. Among other things, the Special Litigation Committee has the power to retain counsel and advisors, as appropriate, to assist it in the investigation, to gather and review relevant documents relating to the claims, to interview persons who may have knowledge of the relevant information, to prepare a report setting forth its conclusions and recommended course of action with respect to the Potential Derivative Litigation, and to take any actions, including, without limitation, directing the filing and prosecution of litigation on behalf of the Company, as the Special Litigation Committee in its sole discretion deems to be in the best interests of the Company in connection with the Potential Derivative Litigation. The Special Litigation Committee’s findings and determinations shall be final and not subject to review by the Board and in all respects shall be binding upon the Company. As disclosed in a Current Report on Form 8-K filed on March 16, 2018, the Fort Worth, Texas Regional Office of the SEC has opened a formal investigation of issues relating to the Restatement, with which the Company is cooperating fully. At this time, the Company is unable to predict the duration, scope, result or related costs associated with the SEC’s investigation. The Company is also unable to predict what, if any, action may be taken by the SEC, or what penalties or remedial actions the SEC may seek. Any determination by the SEC that the Company’s activities were not in compliance with existing laws or regulations, however, could result in the imposition of fines, penalties, disgorgement, equitable relief, or other losses, which could have a material adverse effect on the Company’s financial position, liquidity, or results of operations. On May 31, 2018, the Company was served with a subpoena issued by a grand jury sitting in the United States District Court for the Western District of Texas (the “Grand Jury Subpoena”). The Grand Jury Subpoena requests all documents and emails relating to the Company’s investigation of the potential improper recognition of software license revenue. The Company intends to fully cooperate with the Grand Jury Subpoena and related investigation being conducted by the United States Attorney’s Office for the Western District of Texas (the “U.S. Attorney’s Investigation”). At this time, the Company is unable to predict the duration, scope, result or related costs of the U.S. Attorney’s Investigation. The Company is also unable to predict what, if any, further action may be taken in connection with the Grand Jury Subpoena and the U.S. Attorney’s Investigation, or what, if any, penalties, sanctions or remedial actions may be sought. Any determination by the U.S. Attorney’s office that the Company’s activities were not in compliance with existing laws or regulations, however, could result in the imposition of fines, penalties, disgorgement, equitable relief, or other losses, which could have a material adverse effect on the Company’s consolidated financial position, liquidity, or results of operations.

8. Stock Options, Restricted St

8. Stock Options, Restricted Stock and Share-Based Compensation	12 Months Ended
	Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	8. Stock Options, Restricted Stock and Share-Based Compensation We have stock-based compensation plans under which we have granted, and may grant in the future, incentive stock options, non-qualified stock options, and restricted stock to employees and non-employee members of the Board of Directors. Our share-based compensation expense was as follows ($ in thousands): Year Ended December 31, 2016 2015 Share-based compensation expense $ 1,014 $ 711 Stock Options We have stock options outstanding under long-term equity incentive plans that originated in 2000, 2010 and 2016. During 2015, we granted stock options only under the 2010 plan. In 2016, we granted stock options under the 2010 plan for most of the year until we reached the cumulative number of shares for which options could be granted under that plan since its inception, which was three million shares. Thereafter, we began granting stock options under a plan originating in 2016 that was approved by our Board of Directors and that is subject to approval by our stockholders at their next annual meeting. Provisions and characteristics of all of 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. Subsequent to 2016, we will issue stock-based awards 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 December 31, 2016, stock based incentives for up to 4,972,000 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 Weighted Average Average Remaining Aggregate Number of Exercise Contractual Intrinsic Shares Price Terms Value (Years) (000’s) Outstanding at December 31, 2014 2,022,175 $ 2.12 6.07 $ 710 2015 Granted 538,000 $ 3.21 Forfeitures (154,650 ) $ 2.49 Exercised (314,200 ) $ 1.61 Outstanding at December 31, 2015 2,091,325 $ 2.45 6.09 $ 3,281 2016 Granted 1,257,300 $ 3.58 Forfeitures (404,175 ) $ 3.14 Exercised (537,445 ) $ 2.08 Outstanding at December 31, 2016 2,407,005 $ 3.00 7.19 $ 2,574 Exercisable at December 31, 2016 1,001,570 $ 2.34 4.55 $ 1,733 Additional information about our stock options is as follows: 2016 2015 Weighted average fair value of options granted during the year $ 1.64 $ 1.60 Intrinsic value of options exercised during the year $ 880,064 $ 532,224 Cash received from stock options exercised during the year $ 1,118,177 $ 507,289 Number of options that vested during the year 348,116 307,494 Fair value of options that vested during the year $ 528,728 $ 385,784 Unrecognized compensation expense related to non-vested options at end of year $ 1,768,344 $ 891,854 Weighted average years over which non-vested option expense will be recognized 2.17 2.01 As of December 31, 2016 Options Outstanding Options Exercisable Weighted Average Weighted Weighted Underlying Remaining Average Number of Average Range of Shares Contractual Exercise Underlying Exercise Exercise Prices Outstanding Life Price Shares Price $ 0.85 - $1.43 116,600 3.36 $ 1.04 116,600 $ 1.04 $ 1.47 - $2.32 459,745 4.89 $ 1.83 457,065 $ 1.83 $ 2.34 - $3.52 1,172,660 8.13 $ 3.22 295,265 $ 2.87 $ 3.53 - $4.21 658,000 7.79 $ 3.78 132,640 $ 4.10 Total options 2,407,005 1,001,570 We used the following assumptions to determine compensation expense for our stock options using the Black-Scholes option-pricing model: Year Ended December 31, 2016 2015 Expected volatility 55 % 61 % Expected annual dividend yield 1.5 % 1.5 % Risk free rate of return 1.45 % 1.58 % Expected option term (years) 6.00 6.00 In connection with the departure of one of our executive officers in 2016, we modified stock options previously granted to him to extend the period during which those options could be exercised after the end of his employment. This modification extended that period beyond ninety days after the end of his employment to December 31, 2016. As a result of this modification, we recorded additional share-based compensation expense of $108,000 in 2016. Restricted Stock Awards In May 2015, we adopted the 2015 Non-Employee Directors Long Term Incentive Plan (“2015 Directors Plan”). This plan provides for the issuance of either stock options or restricted stock awards for up to 500,000 shares of our common stock. Provisions and characteristics of this plan include the following: · The exercise price, term and other conditions applicable to each stock option or stock award granted are determined by the Compensation Committee of the Board of Directors. · Restricted stock awards are initially issued 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 December 31, 2016, 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, 2014 80,000 $ 2.32 2015 Shares granted with restrictions 80,000 $ 3.34 Shares vested and restrictions removed (80,000 ) $ 2.32 $ 267,200 Restricted Shares Outstanding at December 31, 2015 80,000 $ 3.34 2016 Shares granted with restrictions 80,000 $ 3.31 Shares vested and restrictions removed (80,000 ) $ 3.34 $ 276,000 Restricted Shares Outstanding at December 31, 2016 80,000 $ 3.31 We have not issued any stock options under the 2015 Directors Plan. The 2015 Directors Plan replaced the 2006 Non-Employee Directors Long Term Incentive Plan. We will not issue any additional stock or stock options under the 2006 plan. At December 31, 2016, we had $90,437 of unrecognized compensation expense related to non-vested stock awards. We expect to recognize that expense in the future over a weighted-average period of four months.

9. Income Taxes

9. Income Taxes	12 Months Ended
	Dec. 31, 2016
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): 2016 2015 Current Deferred Total Current Deferred Total Federal $ 1,732 $ (92 ) 1,640 $ 2,008 $ (244 ) $ 1,764 State 179 (18 ) 161 101 (4 ) 97 Total $ 1,911 $ (110 ) $ 1,801 $ 2,109 $ (248 ) $ 1,861 Deferred income taxes on our consolidated balance sheet reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax assets and liabilities are as follows ($ in thousands): As of December 31, 2016 2015 Deferred tax assets: Deferred revenue $ 1,229 $ 1,154 Capital loss carryforward 1,099 1,099 Share-based compensation 578 677 Compensation and benefits 278 168 Texas franchise tax R&D credit 153 - Allowance for doubtful accounts 114 111 Net operating loss carryforward 91 151 Other 56 33 Less valuation allowances: Capital loss carryforward (1,099 ) (1,099 ) Texas franchise tax R&D credit (153 ) - Total deferred tax assets 2,346 2,294 Deferred tax liabilities: Intangible assets 1,289 1,339 Depreciation 7 15 Total gross deferred tax liabilities 1,296 1,354 Net deferred tax assets $ 1,050 $ 940 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 December 31, 2016, we had federal income tax net operating loss carryforwards of $268,000 available to offset future federal taxable income, if any. These carryforwards became available through our acquisition of TappIn, Inc. in 2011. These carryforwards expire in 2030 and 2031. As of December 31, 2016, 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 December 31, 2016, we had Texas franchise tax research and development activities credit carryforwards of $153,000. We can realize these 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 in 2015 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 believe 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 $120,000 as of December 31, 2016. The aggregate changes in the balance of our gross unrecognized tax benefits were as follows ($ in thousands): 2016 2015 Balance, beginning of year $ 90 $ 125 Increases for tax positions related to the current year 22 25 Increases for tax positions related to prior years 9 23 Decreases for tax positions related to prior years - (51 ) Decreases due to settlements related to prior years - (32 ) Balance, end of year $ 121 $ 90 We believe it reasonably possible that we will not recognize any of our unrecognized tax benefits during 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. As of December 31, 2016, 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 2016 or 2015. Our income tax expense reconciles to an income tax expense resulting from applying an assumed statutory federal income rate of 34% to income before income taxes as follows ($ in thousands): Year Ended December 31, 2016 2015 Income tax expense at federal statutory rate $ 1,831 $ 2,172 Increase (decrease) in taxes resulting from: State taxes, net of federal benefit 100 62 Incentive stock options 55 - R&D tax credit uncertain tax position (net) 31 (35 ) Research and development credit (176 ) (251 ) Domestic production activities deduction (64 ) (136 ) Other 24 49 Income tax expense per the statement of operations $ 1,801 $ 1,861 The U.S. Tax Cuts and Jobs Act (The Tax Reform Act) was enacted on December 22, 2017. This legislation significantly changes U.S. tax law by, among other things, lowering corporate income tax rates. The Tax Reform Act permanently reduces the U.S. corporate tax rate from a maximum of 35% to a flat 21% rate effective January 1, 2018. The main impact of the Tax Reform Act on our 2017 consolidated financial statements is the re-measurement of our deferred tax balances at December 31, 2017 from the old corporate tax rate to the new corporate tax rate. Because of the decrease in the U.S. corporate tax rate, we recorded deferred tax expense of $355,000 during 2017 due to this re-measurement. We have no material or provisional items for which the accounting of the effects of the Tax Reform Act on our consolidated financial statements is incomplete.

10. Earnings Per Share

10. Earnings Per Share	12 Months Ended
	Dec. 31, 2016
Earnings Per Share [Abstract]
Earnings Per Share [Text Block]	10. Earnings Per Share Earnings per share for the periods indicated were computed as follows (in thousands except per share amounts): Year ended December 31, 2016 2015 Numerators Numerator for basic and diluted earnings per share: Net income $ 3,585 $ 4,526 Denominators Denominators for basic and diluted earnings per share: Weighted average shares outstanding - basic 21,126 20,824 Dilutive potential common shares Stock options and awards 551 542 Denominator for diluted earnings per share 21,677 21,366 Net income per common share - basic $ 0.17 $ 0.22 Net income per common share – diluted $ 0.17 $ 0.21

11. Dividends

11. Dividends	12 Months Ended
	Dec. 31, 2016
Dividends [Abstract]
Dividends [Text Block]	11. Dividends We paid dividends Year ended December 31, 2016 2015 Dividend per share of common stock $ 0.060 $ 0.045

12. Employee Benefit Plan

12. Employee Benefit Plan	12 Months Ended
	Dec. 31, 2016
Disclosure Text Block Supplement [Abstract]
Compensation and Employee Benefit Plans [Text Block]	12. Employee Benefit Plan We provide our employees a 401(k) plan under which we make employer matching contributions in amounts determined by our Board of Directors. Our matching contributions were $143,000, and $126,000 for the 2016 and 2015, respectively.

13. Segment and Geographic Disc

13. Segment and Geographic Disclosures	12 Months Ended
	Dec. 31, 2016
Segment Reporting [Abstract]
Segment Reporting Disclosure [Text Block]	13. 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 77% of the Company’s total revenues in 2016 and approximately 76% of the Company’s total revenues in 2015. The remaining revenues were from customers and partners located in foreign countries, and each individual foreign country accounted for less than 10% of total revenues in 2016 and 2015. The Company attributes revenues to countries based on the country in which the customer or partner is located. None of our property and equipment was located in a foreign country as of December 31, 2016 and 2015.

14. Concentration of Business V

14. Concentration of Business Volume and Credit Risk	12 Months Ended
	Dec. 31, 2016
Risks and Uncertainties [Abstract]
Concentration Risk Disclosure [Text Block]	14. Concentration of Business Volume and Credit Risk Our cash, cash equivalents and long-term investments are on deposit in banks and are collectively insured by the Federal Deposit Insurance Corporation for $750,000. Our balances in excess of that amount are not insured. We may withdraw our cash deposits upon demand but in doing so may forfeit certain earned but unpaid interest on certain certificates of deposit if we redeemed them prior to their maturity date. We maintain our cash with multiple financial institutions of reputable credit to minimize our risk of loss. We generally provide credit to our customers under typical invoice payment terms (for example, net 30) that gives rise to trade accounts receivable from those customers. We do not require collateral from our customers. We perform ongoing evaluations of the credit risk related to offering these payment terms. We provide an allowance for uncollectible accounts based on our historical collections experience and the profile of our accounts receivable. In order to leverage the resources of third parties, we make our products available for purchase by end users through third-party, channel resellers even though those end users can also purchase those products directly from us. During 2016 and 2015, we earned approximately 14% and 11%, respectively, of our revenue from such sales through our largest, third-party, channel reseller. In 2016 and 2015, approximately 23%, and 24%, respectively, of our revenues resulted from sales to customers in foreign countries. We received substantially all of our revenues from foreign customers in U.S. dollars resulting in limited exchange rate risks. Our foreign sales are concentrated mostly in Canada, Western Europe and Latin America. We use software developers outside the United States to perform a portion of the coding for the development and maintenance of our software products. If we were unable to continue using these developers because of political or economic instability, we may have difficulty finding comparably skilled developers or may have to pay considerably more for the same work, which could have a material adverse impact on our financial position and results of operations.

15. Restatement

15. Restatement	12 Months Ended
	Dec. 31, 2016
Accounting Changes and Error Corrections [Abstract]
Accounting Changes and Error Corrections [Text Block]	15. Restatement The Company has concluded that its previously issued consolidated financial statements for the year ended December 31, 2016 should be restated due to misstatements related to certain revenue transactions incorrectly recognized during the year ended December 31, 2016 as well as other transactions identified during the Audit Committee’s investigation and management’s analysis and for certain changes in the Company’s accounting methods, reclassifications and revisions as discussed in Note 2 to these consolidated financial statements. Our consolidated financial statements for the year ended December 31, 2015 have been restated to show the adjustments related to changes in the Company’s accounting methods, reclassifications and revisions as discussed in Note 2 to these consolidated financial statements. The impact of all the misstatements and adjustments described above on the consolidated financial statements as of and for the years ending December 31, 2016 and 2015 are as follows: GlobalSCAPE, Inc. Consolidated Balance Sheet December 31, 2016 (in thousands except per share amounts) Previously Reported Adjustment As Restated Assets Current assets: Cash and cash equivalents $ 8,895 - $ 8,895 Short term investments 2,754 - 2,754 Accounts receivable, net 6,964 (676 ) 6,288 Federal income tax receivable 169 123 292 Prepaid and other expenses 521 10 531 Total current assets 19,303 (543 ) 18,760 Long term investments 12,779 - 12,779 Property and equipment, net 456 - 456 Capitalized software development costs, net 3,743 - 3,743 Goodwill 12,712 - 12,712 Deferred tax asset, net 942 108 1,050 Other assets 245 - 245 Total assets $ 50,180 $ (435 ) $ 49,745 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable $ 876 $ 54 $ 930 Accrued expenses 1,836 (233 ) 1,603 Deferred revenue 13,655 - 13,655 Income taxes payable - - - Total current liabilities 16,367 (179 ) 16,188 Deferred revenue, non-current portion 3,790 - 3,790 Other long term liabilities 147 5 152 Stockholders’ Equity: Preferred stock, par value $0.001 per share, 10,000,000 shares authorized, no shares issued or outstanding - - - Common stock, par value $0.001 per share, 40,000,000 shares authorized, 21,920,912 shares issued 22 - 22 Additional paid-in capital 21,650 106 21,756 Treasury stock, 403,581 shares, at cost (1,452 ) - (1,452 ) Retained earnings 9,656 (367 ) 9,289 Total stockholders’ equity $ 29,876 $ (261 ) $ 29,615 Total liabilities and stockholders’ equity $ 50,180 $ (435 ) $ 49,745 GlobalSCAPE, Inc. Consolidated Statement of Operations and Comprehensive Income For the Year Ended December 31, 2016 (in thousands, except per share amounts) Previously Reported Adjustment As Restated Operating revenues: Software licenses $ 11,984 $ (741 ) $ 11,243 Maintenance and support 18,668 - 18,668 Professional services 2,684 - 2,684 Total revenues 33,336 (741 ) 32,595 Costs of revenues Software licenses 3,110 (39 ) 3,071 Maintenance and support 1,541 (4 ) 1,537 Professional services 1,671 13 1,684 Total costs of revenues 6,322 (30 ) 6,292 Gross profit 27,014 (711 ) 26,303 Operating expenses Sales and marketing 11,682 (124 ) 11,558 General and administrative 6,975 (28 ) 6,947 Research and development 2,539 32 2,571 Total operating expenses 21,196 (120 ) 21,076 Income from operations 5,818 (591 ) 5,227 Other income 159 - 159 Income before income taxes 5,977 (591 ) 5,386 Income tax expense 2,026 (225 ) 1,801 Net income $ 3,951 $ (366 ) $ 3,585 Comprehensive income $ 3,951 $ (366 ) $ 3,585 Net income per common share: Basic $ 0.19 $ (0.02 ) $ 0.17 Diluted $ 0.18 $ (0.02 ) $ 0.17 Weighted average shares outstanding: Basic 21,126 21,126 21,126 Diluted 21,677 21,677 21,677 Cash dividends declared per share $ 0.06 $ - $ 0.06 GlobalSCAPE, Inc. Consolidated Statement of Cash Flows For the Year Ended December 31, 2016 (in thousands) Previously Reported Adjustment As Restated Operating Activities: Net income $ 3,951 (366 ) $ 3,585 Adjustments to reconcile net income to net cash provided by operating activities: Bad debt expense 72 110 182 Depreciation and amortization 2,045 - 2,045 Stock-based compensation 973 41 1,014 Deferred taxes (2 ) (108 ) (110 ) Excess tax deficiency from exercise of share based compensation 24 - 24 Subtotal before changes in operating assets and liabilities 7,063 (323 ) 6,740 Changes in operating assets and liabilities: Accounts receivable (1,161 ) 629 (532 ) Prepaid expenses (10 ) (10 ) (20 ) Federal income taxes 352 (123 ) 229 Accrued interest receivable (163 ) - (163 ) Other assets (185 ) - (185 ) Accounts payable 37 54 91 Accrued expenses (58 ) (232 ) (290 ) Deferred revenues 1,177 1,177 Other long-term liabilities 13 5 18 Net cash provided by (used in) operating activities 7,065 - 7,065 Investing Activities: Software development costs (1,538 ) - (1,538 ) Purchase of property and equipment (226 ) - (226 ) Purchase of certificates of deposit (12,116 ) - (12,116 ) Net cash provided by (used in) investing activities (13,880 ) - (13,880 ) Financing Activities: Proceeds from exercise of stock options 1,120 - 1,120 Tax deficiency (benefit) from stock-based compensation (24 ) - (24 ) Dividends paid (1,271 ) - (1,271 ) Net cash provided by (used in) financing activities (175 ) - (175 ) Net increase (decrease) in cash (6,990 ) - (6,990 ) Cash at beginning of period 15,885 - 15,885 Cash at end of period $ 8,895 $ - $ 8,895 Supplemental disclosure of cash flow information: Cash paid during the period for: Interest $ - $ - $ - Income taxes $ 1,638 $ - $ 1,638 GlobalSCAPE, Inc. Consolidated Statements of Stockholders’ Equity (in thousands, except number of shares) Additional Common Stock Paid-in Treasury Retained Shares Amount Capital Stock Earnings Total Balance at December 31, 2014 As Originally Filed 20,989,267 $ 21 $ 18,370 $ (1,452 ) $ 3,889 $ 20,828 Restated (80,000 ) (500 ) (500 ) As Restated 20,909,267 21 18,370 (1,452 ) 3,389 20,328 Shares issued upon exercise of stock options 314,200 - 508 - - 508 Tax (deficiency) from stock-based compensation - - 58 - - 58 Stock-based compensation expense Stock options - - 464 - - 464 Restricted stock 80,000 - 247 - - 247 Common stock cash dividends - - - - (940 ) (940 ) Net income as restated (See Note) - - - - 4,526 4,526 Balance at December 31, 2015 21,303,467 $ 21 $ 19,647 $ (1,452 ) $ 6,975 $ 25,191 Shares issued upon exercise of stock options 537,445 1 1,119 - - 1,120 Tax benefit (deficiency) from stock-based compensation - - (24 ) - - (24 ) Stock-based compensation expense Stock options - - 741 - - 741 Restricted stock 80,000 - 273 - - 273 Common stock cash dividends - - - - (1,271 ) (1,271 ) Net income as restated (See Note) - - - - 3,585 3,585 Balance at December 31, 2016 21,920,912 $ 22 $ 21,756 $ (1,452 ) $ 9,289 $ 29,615 Note: Net income for the year ended December 31, 2016, as previously reported $ 3,951 Adjustment (366 ) Net income for the year ended December 31, 2016, as restated $ 3,585 Net income for the year ended December 31, 2015, as previously reported $ 4,598 Adjustment (72 ) Net income for the year ended December 31, 2015, as restated $ 4,526 Consolidated Balance Sheet As of December 31, 2015 (in thousands) As Previously Reported Adjustments As Restated Assets Current assets: Cash and cash equivalents $ 15,885 $ - $ 15,885 Short term investments 3,254 - 3,254 Accounts receivable, net 6,081 (143 ) 5,938 Federal income tax receivable 290 255 545 Prepaid and other expenses 511 - 511 Total current assets 26,021 112 26,133 Long term investments - Property and equipment, net 498 - 498 Capitalized software development costs, net 3,982 - 3,982 Goodwill 12,712 - 12,712 Deferred tax asset, net 940 - 940 Other assets 60 - 60 Total assets $ 44,213 $ 112 $ 44,325 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable 839 - 839 Accrued expenses 1,893 - 1,893 Deferred revenue 12,000 460 12,460 Income taxes payable 127 (127 ) - Total current liabilities 14,859 333 15,192 Deferred revenue, non-current portion 3,612 196 3,808 Other long term liabilities 44 90 134 Stockholders’ Equity: Preferred stock - - - Common stock 21 - 21 Additional paid-in capital 19,582 65 19,647 Treasury stock (1,452 ) - (1,452 ) Retained earnings 7,547 (572 ) 6,975 Total stockholders’ equity 25,698 (507 ) 25,191 Total liabilities and stockholders’ equity $ 44,213 $ 112 $ 44,325 Consolidated Statement of Operations and Comprehensive Income For the Year Ended December 31, 2015 (in thousands, except per share amounts) As Previously Reported Adjustments As Restated Operating revenues: Software licenses $ 12,023 $ - $ 12,023 Maintenance and support 16,595 (106 ) 16,489 Professional services 2,223 - 2,223 Total revenues 30,841 (106 ) 30,735 Costs of revenues Software licenses 2,428 2,428 Maintenance and support 1,466 4 1,470 Professional services 1,775 (380 ) 1,395 Total costs of revenues 5,669 (376 ) 5,293 Gross Profit 25,172 270 25,442 Operating expenses Sales and marketing 10,025 406 10,431 General and administrative 6,168 (37 ) 6,131 Research and development 2,562 9 2,571 Total operating expenses 18,755 378 19,133 Income from operations 6,417 (108 ) 6,309 Other income (expense), net: Interest expense (4 ) - (4 ) Interest income 82 - 82 Total other income (expense), net 78 - 78 Income before income taxes 6,495 (108 ) 6,387 Provision for income taxes 1,897 (36 ) 1,861 Net income $ 4,598 $ (72 ) $ 4,526 Comprehensive income $ 4,598 $ (72 ) $ 4,526 Net income per common share - basic $ 0.22 $ - $ 0.22 Net income per common share - diluted $ 0.22 $ - $ 0.21 Consolidated Statement of Cash Flows For the Year Ended December 31, 2015 (in thousands) As Previously Reported Adjustments As Restated Operating Activities: Net income $ 4,598 (72 ) $ 4,526 Adjustments to reconcile net income to net cash provided by operating activities: Bad debt expense 62 (69 ) (7 ) Depreciation and amortization 1,553 1,553 Stock-based compensation 646 65 711 Deferred taxes (248 ) (248 ) Excess tax deficiency from exercise of share based compensation (58 ) (58 ) Subtotal before changes in operating assets and liabilities 6,553 (76 ) 6,477 Changes in operating assets and liabilities: Accounts receivable (205 ) 212 7 Prepaid expenses (23 ) (23 ) Federal income taxes (107 ) (126 ) (233 ) Accrued interest receivable (69 ) (69 ) Other assets 40 40 Accounts payable (272 ) (272 ) Accrued expenses 303 303 Deferred revenues 808 (100 ) 708 Other long-term liabilities (8 ) 90 82 Net cash provided by (used in) operating activities 7,020 - 7,020 Investing Activities: Software development costs (1,967 ) (1,967 ) Purchase of property and equipment (152 ) (152 ) Purchase of certificates of deposit - - Net cash provided by (used in) investing activities (2,119 ) - (2,119 ) Financing Activities: Proceeds from exercise of stock options 508 508 Tax deficiency (benefit) from stock-based compensation 58 58 Dividends paid (940 ) (940 ) Net cash provided by (used in) financing activities (374 ) - (374 ) Net increase (decrease) in cash 4,527 4,527 Cash at beginning of period 11,358 11,358 Cash at end of period $ 15,885 $ - $ 15,885 Supplemental disclosure of cash flow information: Cash paid during the period for: Interest $ - $ - $ - Income taxes $ 2,146 $ - $ 2,146

Accounting Policies, by Policy

Accounting Policies, by Policy (Policies)	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Basis of Accounting, Policy [Policy Text Block]	Basis of Presentation We follow accounting standards set by the Financial Accounting Standards Board. This board sets GAAP, which 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 SEC. The preparation of financial statements in accordance with GAAP requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities known to exist as of the date the financial statements are published, and the reported amounts of revenues and expenses during the reporting period. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of our financial statements. It is possible the actual results could differ from these estimates and assumptions and could have a material effect on the reported amounts of our financial position and results of operations.
Consolidation, Policy [Policy Text Block]	Principles of Consolidation The accompanying consolidated financial statements of GlobalSCAPE, Inc. and its wholly-owned subsidiary (collectively referred to as the “Company” or “we”) are prepared in conformity with GAAP. All intercompany accounts and transactions have been eliminated.
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 Agreements In previously issued financial statements, we amortized deferred revenue related to M&S agreements by recording a full month of amortization in the first month of an agreement. We used that method based on our intent to match revenue from our M&S agreements 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 agreement 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 agreement but yield differing amounts of revenue being recognized in the first month and last month of an M&S agreement. We have changed our method of amortizing deferred revenue related to M&S agreements such that our consolidated statements of operations and balance sheets included herein are now prepared using the specific number of days method. This change had the effect of decreasing M&S revenue and net income on our consolidated statements of operations for 2016 and 2015 by immaterial amounts. It increased the amount of our deferred revenue on our consolidated balance sheets as of December 31, 2016 and 2015, which will result in us reporting more revenue in periods subsequent to 2016 than we would have reported under the previous method. 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, we previously recorded an account receivable and deferred revenue for these invoices as of the date of the invoice. We believe a reasonable, alternate and more conservative method is to wait until the commencement date of the M&S has 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 consolidated balance sheets included herein are now prepared using that method. This change has the effect of decreasing our reported amounts of accounts receivable and deferred revenue 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 them 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. We believe these expenses are now more appropriately classified as part of sales and marketing expense and have now classified them as such. 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 consolidated financial statements taken as a whole. In assessing the materiality of this reserve 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. With respect to the above items, we have restated our consolidated financial statements as of December 31, 2015, and for the year then ended. See Note 15 for the impact of all the adjustments to our consolidated financial statements in our Original Filing to correct those consolidated financial statements for the effects of the adjustments described above.
Revenue Recognition, Policy [Policy Text Block]	Revenue Recognition We develop, market and sell software products. We recognize revenue from a sale transaction when the following conditions are met: · Persuasive evidence of an arrangement exists. · Delivery has occurred or services have been rendered. · The amount of the sale is fixed or determinable. · Collection of the sale amount is reasonably assured. For a sale transaction not meeting any one of these four criteria, we defer recognition of revenue related to that transaction until all the criteria are met. We earn the majority of our software license revenue from software products sold under perpetual software license agreements. At the time our customers purchase these products, they typically also purchase a product maintenance and support, or M&S, agreement. These transactions are multiple element software sales for which we assess the presence of 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 agreements 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 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.
Sort Term Investments, Policy [Policy Text Block]	Short Term Investments Short-term investments consist of certificates of deposit held with financial institutions with contractual maturity dates less than one year from the balance sheet date. The Company has the intent and ability to hold these investments until their maturity dates and therefore accounts for them as held-to-maturity. These certificates of deposit are stated at amortized cost, which approximates fair value of these investments.
Investment, Policy [Policy Text Block]	Long-Term Investments Long-term investments consist of certificates of deposit held with financial institutions with contractual maturity dates greater than one year from the balance sheet date. The Company has the intent and ability to hold these investments until their maturity dates and therefore accounts for them as held-to-maturity. These certificates of deposit are stated at amortized cost, which approximates fair value of these investments.
Property, Plant and Equipment, Policy [Policy Text Block]	Property and Equipment Property and equipment is comprised of furniture and fixtures, software, computer equipment and leasehold improvements which are recorded at cost and depreciated using the straight-line method over their estimated useful lives. Furniture, fixtures and equipment have a useful life of five to seven years, computer equipment and software have a useful life of three years and leasehold improvements have a useful life that is the shorter of the term of the lease under which the improvements were made or the estimated useful life of the asset. Expenditures for maintenance and repairs are charged to operations as incurred.
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 detailed program design or a working model of that software product, we capitalize production costs incurred for that software product from that point forward until it is ready for general release to the public. Thereafter, we amortize capitalized software production costs to expense using the straight-line method over the estimated useful life of that product, which is generally three years. We periodically assess the carrying value of capitalized software development costs relative to our estimates of realizability through sales of products in the marketplace.
Cost of Sales, Policy [Policy Text Block]	Cost of revenue Cost of revenue consists of expenses associated with the production, delivery and support of the products and services we sell. Cost of license revenue consists primarily of amortization of the capitalized software development costs we incur when producing our software products, royalties we pay to use software developed by others for certain features of our products, and fees we pay to third parties who provide services supporting our SaaS and cloud-based subscription solutions. Cost of M&S revenue and cost of professional services revenue consist primarily of salaries and related costs of our employees and third parties we use to deliver these services.
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 approximately $1.9 million and $1.6 million in 2016 and 2015, respectively.
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]	Share-Based Compensation We measure the cost of share-based payment transactions at the grant date based on the calculated fair value of the award. We recognize this cost as an expense ratably over the recipient’s requisite service period during which that award vests or becomes unrestricted. For stock option awards, we estimate their fair value at the grant date using the Black-Scholes option-pricing model considering the following factors: • We estimate expected volatility based on historical volatility of our common stock. • We use primarily the simplified method to derive an expected term which represents an estimate of the time options are expected to remain outstanding. We use this method because our options are plain-vanilla options, and we believe our historical option exercise experience is not adequately indicative of our future expectations. • We base the risk-free rate for periods within the contractual life of the option on the U.S. treasury yield curve in effect at the time of grant. • We estimate a dividend yield based on our historical and expected future dividend payments. For restricted stock awards, we use the quoted price of our common stock on the grant date as the fair value of the award.
Income Tax, Policy [Policy Text Block]	Income Taxes We account for income taxes using the asset and liability method. We record deferred tax assets and liabilities based on the difference between the tax bases of assets and liabilities and their carrying amount for financial reporting purposes, as measured by the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Deferred tax assets and liabilities are carried on the balance sheet with the presumption that they will be realizable in future periods in which we generate taxable income. We assess the likelihood that deferred tax assets will be realized from future taxable income. Based on this assessment, we provide any necessary valuation allowance on our balance sheet with a corresponding increase in the tax provision on our statement of operations. Any valuation allowances we establish are determined based upon a number of assumptions, judgments, and estimates, including forecasted earnings, future taxable income, and the relative proportions of revenue and income before taxes in the various domestic jurisdictions in which we operate. We account for uncertainty in income taxes using a two-step process to determine the amount of tax benefit to be recognized. First, we evaluate the tax position to determine the likelihood that it will be sustained upon external examination. If the tax position is deemed “more-likely-than-not” to be sustained, we assess the tax position to determine the amount of benefit to recognize in the financial statements. The amount of the benefit we recognize is the largest amount that we believe has a greater than 50% likelihood of being realized upon ultimate settlement. Unrecognized tax benefits represent tax positions for which reserves have been established.
Earnings Per Share, Policy [Policy Text Block]	Earnings Per Share We compute basic earnings per share using the weighted-average number of common shares outstanding during the periods. We compute diluted earnings per share using the weighted-average number of common shares outstanding plus the number of common shares that would be issued assuming conversion of all potentially dilutive common shares outstanding. Awards of non-vested options are considered potentially dilutive common shares for the purpose of computing earnings per common share. We apply the treasury stock method to non-vested options under which the assumed proceeds include the amount the employee must pay to exercise the option plus the amount of unrecognized cost attributable to future periods less any expected tax benefits.
New Accounting Pronouncements, Policy [Policy Text Block]	Recent accounting pronouncements The Financial Accounting Standards Board, or FASB, has issued the following Accounting Standard Updates (ASU) that we believe may be relevant to our business and to the preparation of our financial statements: ASU 2017-04, Intangibles – Goodwill and Other (issued January 2017) - ASU 2016-13, Financial Instruments – Credit Losses (issued June 2016) ASU 2016-09, Improvements to Employee Share-Based Payment Accounting (issued March 2016) 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 have assessed the effect of ASU 2014-09 on the amount and timing of revenue we expect to recognize from our business activities in 2018 and later. We do not expect there to be material differences in the amount and timing of revenue we recognize from similar business activities in future periods determined by applying ASU 2014-09 as compared to revenue we would have otherwise recognized by applying GAAP as it existed prior to 2018. We have determined that the application of ASU 2014-09 will have a material effect on the timing of our recording of expenses resulting from the incremental costs we incur to obtain a contract with a customer to deliver goods and services. These incremental costs consist primarily of sales commissions paid to our sales people and royalties on certain of our products paid to third parties. For years ended December 31, 2017, and earlier, we recorded the full amount of the sales commission and royalties paid on the full value of an M&S or SaaS contract as an expense on the inception date of the M&S contract. Under ASU 2014-09, we will account for such costs we incur in 2018 and later as follows: · If these costs are associated with products and services for which we recognize revenue at a point in time (primarily sales of perpetual software licenses and professional services), we will expense these costs in full at the time we recognize that revenue. · If these costs are associated with services for which we recognize revenue over time (primarily sales of M&S and SaaS subscriptions) for which we believe it is likely that the contract for those services will be renewed for additional terms in the future, provided we deem these costs to be recoverable, we will record these costs as deferred expense asset and amortize that cost to expense as follows: o For the portion of the cost that we determine benefits us primarily only over the term of the specific underlying contract currently in force (such as the term of an M&S contract), we will recognize expense ratably each month over that term. o For the portion of the cost that we determine benefits us over an overall customer relationship that is likely to span period of time that is longer than an initial contract term (for example, an M&S contract renewed for multiple terms in the future), we will recognize expense ratably monthly over the estimated life of the customer relationship. Our application of ASU 2014-09 to incremental costs we incur to obtain a contract with a customer will result in us recording, as an asset as of January 1, 2018, a deferred expense of approximately $1.2 million applicable to contracts with customers in effect as of that date. We previously reported this amount as an expense in our financial statements for periods ending on and before December 31, 2017. We estimate that we will amortize this amount to expense at the rate of approximately $186,000 per quarter beginning in 2018. The incremental costs we incur to obtain contracts with customers during 2018 and later years, and the amount of such costs we record as a deferred expense and amortize to expense in subsequent periods, will depend upon the nature and scope of our future business activities, the nature and mix of the products and services we sell, the compensation plans we have in place for our sales people, and the royalty arrangements we enter into with third parties.

3. Accounts Receivable, Net (Ta

3. Accounts Receivable, Net (Tables)	12 Months Ended
	Dec. 31, 2016
Receivables [Abstract]
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]	Accordingly, we determine our accounts receivable as follows ($ in thousands): December 31, 2016 2015 Total invoices issued and unpaid $ 6,932 $ 6,407 Less: Unpaid invoices relating to M&S contracts with a start date subsequent to the balance sheet date (381 ) (206 ) Gross accounts receivable 6,551 6,201 Allowance for sales returns and doubtful accounts (263 ) (263 ) Accounts receivable, net $ 6,288 $ 5,938
Allowance for Credit Losses on Financing Receivables [Table Text Block]	The activity in our allowance for doubtful accounts and sales returns has been as follows ($ in thousands Year Ended December 31, 2016 2015 Balance, beginning of period $ 263 $ 511 Provision for doubtful accounts and sales returns 182 (7 ) Accounts written off (182 ) (241 ) Balance, end of period $ 263 $ 263

4. Property and Equipment, Net

4. Property and Equipment, Net (Tables)	12 Months Ended
	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment [Table Text Block]	Property and equipment, at cost, consists of the following ($ in thousands): December 31, 2016 2015 Furniture and fixtures $ 636 $ 620 Software 651 638 Equipment 1,411 1,218 Leasehold improvements 559 559 3,257 3,035 Less accumulated depreciation (2,801 ) (2,537 ) Property and equipment, net $ 456 $ 498

5. Capitalized Software Devel25

5. Capitalized Software Development Costs, Net (Tables)	12 Months Ended
	Dec. 31, 2016
Disclosure Text Block [Abstract]
Schedule of Finite-Lived Intangible Assets [Table Text Block]	Our capitalized software development costs balances and activity is as follows: ($ in thousands): December 31, 2016 2015 Gross capitalized cost $ 7,252 $ 5,714 Accumulated amortization (3,509 ) (1,732 ) Net balance $ 3,743 $ 3,982
Finite-lived Intangible Assets Amortization Expense [Table Text Block]	Year Ended December 31, 2016 2015 Amount capitalized $ 1,538 $ 1,967 Amortization expense $ (1,777 ) $ (1,283 )
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Table Text Block]	Released Unreleased Products Products Gross capitalized amount at December 31, 2016 $ 6,171 $ 1,081 Accumulated amortization $ (3,509 ) $ - Net balance $ 2,662 $ 1,081
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]	Future amortization expense for the year ending December 31, 2017 $ 1,589 2018 856 2019 217 Total $ 2,662

6. Deferred Revenue (Tables)

6. Deferred Revenue (Tables)	12 Months Ended
	Dec. 31, 2016
Deferred Revenue Disclosure [Abstract]
Deferred Revenue, by Arrangement, Disclosure [Table Text Block]	December 31, 2016 2015 Total invoiced for M&S contracts for which revenue will be recognized in future periods $ 17,826 $ 16,474 Less: Unpaid invoices relating to M&S agreements with a start date subsequent to the balance sheet date (381 ) (206 ) Total deferred revenue $ 17,445 $ 16,268 Deferred revenue, current portion $ 13,655 $ 12,460 Deferred revenue, non-current portion 3,790 3,808 Total deferred revenue $ 17,445 $ 16,268

7. Commitments and Contingenc27

7. Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]	We have an operating lease related to our office space. Minimum rental commitments under operating leases at December 31, 2016, are as follows ($ in thousands): Year Ending December 31, 2017 $ 360 2018 360 2019 120 Total $ 840

8. Stock Options, Restricted 28

8. Stock Options, Restricted Stock and Share-Based Compensation (Tables)	12 Months Ended
	Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Table Text Block]	Our share-based compensation expense was as follows ($ in thousands): Year Ended December 31, 2016 2015 Share-based compensation expense $ 1,014 $ 711
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]	Our stock option activity has been as follows: Weighted Weighted Average Average Remaining Aggregate Number of Exercise Contractual Intrinsic Shares Price Terms Value (Years) (000’s) Outstanding at December 31, 2014 2,022,175 $ 2.12 6.07 $ 710 2015 Granted 538,000 $ 3.21 Forfeitures (154,650 ) $ 2.49 Exercised (314,200 ) $ 1.61 Outstanding at December 31, 2015 2,091,325 $ 2.45 6.09 $ 3,281 2016 Granted 1,257,300 $ 3.58 Forfeitures (404,175 ) $ 3.14 Exercised (537,445 ) $ 2.08 Outstanding at December 31, 2016 2,407,005 $ 3.00 7.19 $ 2,574 Exercisable at December 31, 2016 1,001,570 $ 2.34 4.55 $ 1,733
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: 2016 2015 Weighted average fair value of options granted during the year $ 1.64 $ 1.60 Intrinsic value of options exercised during the year $ 880,064 $ 532,224 Cash received from stock options exercised during the year $ 1,118,177 $ 507,289 Number of options that vested during the year 348,116 307,494 Fair value of options that vested during the year $ 528,728 $ 385,784 Unrecognized compensation expense related to non-vested options at end of year $ 1,768,344 $ 891,854 Weighted average years over which non-vested option expense will be recognized 2.17 2.01
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block]	As of December 31, 2016 Options Outstanding Options Exercisable Weighted Average Weighted Weighted Underlying Remaining Average Number of Average Range of Shares Contractual Exercise Underlying Exercise Exercise Prices Outstanding Life Price Shares Price $ 0.85 - $1.43 116,600 3.36 $ 1.04 116,600 $ 1.04 $ 1.47 - $2.32 459,745 4.89 $ 1.83 457,065 $ 1.83 $ 2.34 - $3.52 1,172,660 8.13 $ 3.22 295,265 $ 2.87 $ 3.53 - $4.21 658,000 7.79 $ 3.78 132,640 $ 4.10 Total options 2,407,005 1,001,570
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]	We used the following assumptions to determine compensation expense for our stock options using the Black-Scholes option-pricing model: Year Ended December 31, 2016 2015 Expected volatility 55 % 61 % Expected annual dividend yield 1.5 % 1.5 % Risk free rate of return 1.45 % 1.58 % Expected option term (years) 6.00 6.00
Nonvested Restricted Stock Shares Activity [Table Text Block]	Our restricted stock awards activity has been as follows: Total Grant Date Fair Value of Number of Fair Value Shares That Shares Per Share Vested Restricted Shares Outstanding at December 31, 2014 80,000 $ 2.32 2015 Shares granted with restrictions 80,000 $ 3.34 Shares vested and restrictions removed (80,000 ) $ 2.32 $ 267,200 Restricted Shares Outstanding at December 31, 2015 80,000 $ 3.34 2016 Shares granted with restrictions 80,000 $ 3.31 Shares vested and restrictions removed (80,000 ) $ 3.34 $ 276,000 Restricted Shares Outstanding at December 31, 2016 80,000 $ 3.31

9. Income Taxes (Tables)

9. Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2016
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): 2016 2015 Current Deferred Total Current Deferred Total Federal $ 1,732 $ (92 ) 1,640 $ 2,008 $ (244 ) $ 1,764 State 179 (18 ) 161 101 (4 ) 97 Total $ 1,911 $ (110 ) $ 1,801 $ 2,109 $ (248 ) $ 1,861
Schedule of Deferred Tax Assets and Liabilities [Table Text Block]	Significant components of our deferred tax assets and liabilities are as follows ($ in thousands): As of December 31, 2016 2015 Deferred tax assets: Deferred revenue $ 1,229 $ 1,154 Capital loss carryforward 1,099 1,099 Share-based compensation 578 677 Compensation and benefits 278 168 Texas franchise tax R&D credit 153 - Allowance for doubtful accounts 114 111 Net operating loss carryforward 91 151 Other 56 33 Less valuation allowances: Capital loss carryforward (1,099 ) (1,099 ) Texas franchise tax R&D credit (153 ) - Total deferred tax assets 2,346 2,294 Deferred tax liabilities: Intangible assets 1,289 1,339 Depreciation 7 15 Total gross deferred tax liabilities 1,296 1,354 Net deferred tax assets $ 1,050 $ 940
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): 2016 2015 Balance, beginning of year $ 90 $ 125 Increases for tax positions related to the current year 22 25 Increases for tax positions related to prior years 9 23 Decreases for tax positions related to prior years - (51 ) Decreases due to settlements related to prior years - (32 ) Balance, end of year $ 121 $ 90
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]	Our income tax expense reconciles to an income tax expense resulting from applying an assumed statutory federal income rate of 34% to income before income taxes as follows ($ in thousands): Year Ended December 31, 2016 2015 Income tax expense at federal statutory rate $ 1,831 $ 2,172 Increase (decrease) in taxes resulting from: State taxes, net of federal benefit 100 62 Incentive stock options 55 - R&D tax credit uncertain tax position (net) 31 (35 ) Research and development credit (176 ) (251 ) Domestic production activities deduction (64 ) (136 ) Other 24 49 Income tax expense per the statement of operations $ 1,801 $ 1,861

10. Earnings Per Share (Tables)

10. Earnings Per Share (Tables)	12 Months Ended
	Dec. 31, 2016
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Earnings per share for the periods indicated were computed as follows (in thousands except per share amounts): Year ended December 31, 2016 2015 Numerators Numerator for basic and diluted earnings per share: Net income $ 3,585 $ 4,526 Denominators Denominators for basic and diluted earnings per share: Weighted average shares outstanding - basic 21,126 20,824 Dilutive potential common shares Stock options and awards 551 542 Denominator for diluted earnings per share 21,677 21,366 Net income per common share - basic $ 0.17 $ 0.22 Net income per common share – diluted $ 0.17 $ 0.21

11. Dividends (Tables)

11. Dividends (Tables)	12 Months Ended
	Dec. 31, 2016
Dividends [Abstract]
Schedule of Dividends Payable [Table Text Block]	We paid dividends as follows: Year ended December 31, 2016 2015 Dividend per share of common stock $ 0.060 $ 0.045

15. Restatement (Tables)

15. Restatement (Tables)	12 Months Ended
	Dec. 31, 2016
Accounting Changes and Error Corrections [Abstract]
Schedule of Reclassification Adjustments [Table Text Block]	Our consolidated financial statements for the year ended December 31, 2015 have been restated to show the adjustments related to changes in the Company’s accounting methods, reclassifications and revisions as discussed in Note 2 to these consolidated financial statements. The impact of all the misstatements and adjustments described above on the consolidated financial statements as of and for the years ending December 31, 2016 and 2015 are as follows: GlobalSCAPE, Inc. Consolidated Balance Sheet December 31, 2016 (in thousands except per share amounts) Previously Reported Adjustment As Restated Assets Current assets: Cash and cash equivalents $ 8,895 - $ 8,895 Short term investments 2,754 - 2,754 Accounts receivable, net 6,964 (676 ) 6,288 Federal income tax receivable 169 123 292 Prepaid and other expenses 521 10 531 Total current assets 19,303 (543 ) 18,760 Long term investments 12,779 - 12,779 Property and equipment, net 456 - 456 Capitalized software development costs, net 3,743 - 3,743 Goodwill 12,712 - 12,712 Deferred tax asset, net 942 108 1,050 Other assets 245 - 245 Total assets $ 50,180 $ (435 ) $ 49,745 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable $ 876 $ 54 $ 930 Accrued expenses 1,836 (233 ) 1,603 Deferred revenue 13,655 - 13,655 Income taxes payable - - - Total current liabilities 16,367 (179 ) 16,188 Deferred revenue, non-current portion 3,790 - 3,790 Other long term liabilities 147 5 152 Stockholders’ Equity: Preferred stock, par value $0.001 per share, 10,000,000 shares authorized, no shares issued or outstanding - - - Common stock, par value $0.001 per share, 40,000,000 shares authorized, 21,920,912 shares issued 22 - 22 Additional paid-in capital 21,650 106 21,756 Treasury stock, 403,581 shares, at cost (1,452 ) - (1,452 ) Retained earnings 9,656 (367 ) 9,289 Total stockholders’ equity $ 29,876 $ (261 ) $ 29,615 Total liabilities and stockholders’ equity $ 50,180 $ (435 ) $ 49,745 GlobalSCAPE, Inc. Consolidated Statement of Operations and Comprehensive Income For the Year Ended December 31, 2016 (in thousands, except per share amounts) Previously Reported Adjustment As Restated Operating revenues: Software licenses $ 11,984 $ (741 ) $ 11,243 Maintenance and support 18,668 - 18,668 Professional services 2,684 - 2,684 Total revenues 33,336 (741 ) 32,595 Costs of revenues Software licenses 3,110 (39 ) 3,071 Maintenance and support 1,541 (4 ) 1,537 Professional services 1,671 13 1,684 Total costs of revenues 6,322 (30 ) 6,292 Gross profit 27,014 (711 ) 26,303 Operating expenses Sales and marketing 11,682 (124 ) 11,558 General and administrative 6,975 (28 ) 6,947 Research and development 2,539 32 2,571 Total operating expenses 21,196 (120 ) 21,076 Income from operations 5,818 (591 ) 5,227 Other income 159 - 159 Income before income taxes 5,977 (591 ) 5,386 Income tax expense 2,026 (225 ) 1,801 Net income $ 3,951 $ (366 ) $ 3,585 Comprehensive income $ 3,951 $ (366 ) $ 3,585 Net income per common share: Basic $ 0.19 $ (0.02 ) $ 0.17 Diluted $ 0.18 $ (0.02 ) $ 0.17 Weighted average shares outstanding: Basic 21,126 21,126 21,126 Diluted 21,677 21,677 21,677 Cash dividends declared per share $ 0.06 $ - $ 0.06 GlobalSCAPE, Inc. Consolidated Statement of Cash Flows For the Year Ended December 31, 2016 (in thousands) Previously Reported Adjustment As Restated Operating Activities: Net income $ 3,951 (366 ) $ 3,585 Adjustments to reconcile net income to net cash provided by operating activities: Bad debt expense 72 110 182 Depreciation and amortization 2,045 - 2,045 Stock-based compensation 973 41 1,014 Deferred taxes (2 ) (108 ) (110 ) Excess tax deficiency from exercise of share based compensation 24 - 24 Subtotal before changes in operating assets and liabilities 7,063 (323 ) 6,740 Changes in operating assets and liabilities: Accounts receivable (1,161 ) 629 (532 ) Prepaid expenses (10 ) (10 ) (20 ) Federal income taxes 352 (123 ) 229 Accrued interest receivable (163 ) - (163 ) Other assets (185 ) - (185 ) Accounts payable 37 54 91 Accrued expenses (58 ) (232 ) (290 ) Deferred revenues 1,177 1,177 Other long-term liabilities 13 5 18 Net cash provided by (used in) operating activities 7,065 - 7,065 Investing Activities: Software development costs (1,538 ) - (1,538 ) Purchase of property and equipment (226 ) - (226 ) Purchase of certificates of deposit (12,116 ) - (12,116 ) Net cash provided by (used in) investing activities (13,880 ) - (13,880 ) Financing Activities: Proceeds from exercise of stock options 1,120 - 1,120 Tax deficiency (benefit) from stock-based compensation (24 ) - (24 ) Dividends paid (1,271 ) - (1,271 ) Net cash provided by (used in) financing activities (175 ) - (175 ) Net increase (decrease) in cash (6,990 ) - (6,990 ) Cash at beginning of period 15,885 - 15,885 Cash at end of period $ 8,895 $ - $ 8,895 Supplemental disclosure of cash flow information: Cash paid during the period for: Interest $ - $ - $ - Income taxes $ 1,638 $ - $ 1,638 GlobalSCAPE, Inc. Consolidated Statements of Stockholders’ Equity (in thousands, except number of shares) Additional Common Stock Paid-in Treasury Retained Shares Amount Capital Stock Earnings Total Balance at December 31, 2014 As Originally Filed 20,989,267 $ 21 $ 18,370 $ (1,452 ) $ 3,889 $ 20,828 Restated (80,000 ) (500 ) (500 ) As Restated 20,909,267 21 18,370 (1,452 ) 3,389 20,328 Shares issued upon exercise of stock options 314,200 - 508 - - 508 Tax (deficiency) from stock-based compensation - - 58 - - 58 Stock-based compensation expense Stock options - - 464 - - 464 Restricted stock 80,000 - 247 - - 247 Common stock cash dividends - - - - (940 ) (940 ) Net income as restated (See Note) - - - - 4,526 4,526 Balance at December 31, 2015 21,303,467 $ 21 $ 19,647 $ (1,452 ) $ 6,975 $ 25,191 Shares issued upon exercise of stock options 537,445 1 1,119 - - 1,120 Tax benefit (deficiency) from stock-based compensation - - (24 ) - - (24 ) Stock-based compensation expense Stock options - - 741 - - 741 Restricted stock 80,000 - 273 - - 273 Common stock cash dividends - - - - (1,271 ) (1,271 ) Net income as restated (See Note) - - - - 3,585 3,585 Balance at December 31, 2016 21,920,912 $ 22 $ 21,756 $ (1,452 ) $ 9,289 $ 29,615 Note: Net income for the year ended December 31, 2016, as previously reported $ 3,951 Adjustment (366 ) Net income for the year ended December 31, 2016, as restated $ 3,585 Net income for the year ended December 31, 2015, as previously reported $ 4,598 Adjustment (72 ) Net income for the year ended December 31, 2015, as restated $ 4,526 Consolidated Balance Sheet As of December 31, 2015 (in thousands) As Previously Reported Adjustments As Restated Assets Current assets: Cash and cash equivalents $ 15,885 $ - $ 15,885 Short term investments 3,254 - 3,254 Accounts receivable, net 6,081 (143 ) 5,938 Federal income tax receivable 290 255 545 Prepaid and other expenses 511 - 511 Total current assets 26,021 112 26,133 Long term investments - Property and equipment, net 498 - 498 Capitalized software development costs, net 3,982 - 3,982 Goodwill 12,712 - 12,712 Deferred tax asset, net 940 - 940 Other assets 60 - 60 Total assets $ 44,213 $ 112 $ 44,325 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable 839 - 839 Accrued expenses 1,893 - 1,893 Deferred revenue 12,000 460 12,460 Income taxes payable 127 (127 ) - Total current liabilities 14,859 333 15,192 Deferred revenue, non-current portion 3,612 196 3,808 Other long term liabilities 44 90 134 Stockholders’ Equity: Preferred stock - - - Common stock 21 - 21 Additional paid-in capital 19,582 65 19,647 Treasury stock (1,452 ) - (1,452 ) Retained earnings 7,547 (572 ) 6,975 Total stockholders’ equity 25,698 (507 ) 25,191 Total liabilities and stockholders’ equity $ 44,213 $ 112 $ 44,325 Consolidated Statement of Operations and Comprehensive Income For the Year Ended December 31, 2015 (in thousands, except per share amounts) As Previously Reported Adjustments As Restated Operating revenues: Software licenses $ 12,023 $ - $ 12,023 Maintenance and support 16,595 (106 ) 16,489 Professional services 2,223 - 2,223 Total revenues 30,841 (106 ) 30,735 Costs of revenues Software licenses 2,428 2,428 Maintenance and support 1,466 4 1,470 Professional services 1,775 (380 ) 1,395 Total costs of revenues 5,669 (376 ) 5,293 Gross Profit 25,172 270 25,442 Operating expenses Sales and marketing 10,025 406 10,431 General and administrative 6,168 (37 ) 6,131 Research and development 2,562 9 2,571 Total operating expenses 18,755 378 19,133 Income from operations 6,417 (108 ) 6,309 Other income (expense), net: Interest expense (4 ) - (4 ) Interest income 82 - 82 Total other income (expense), net 78 - 78 Income before income taxes 6,495 (108 ) 6,387 Provision for income taxes 1,897 (36 ) 1,861 Net income $ 4,598 $ (72 ) $ 4,526 Comprehensive income $ 4,598 $ (72 ) $ 4,526 Net income per common share - basic $ 0.22 $ - $ 0.22 Net income per common share - diluted $ 0.22 $ - $ 0.21 Consolidated Statement of Cash Flows For the Year Ended December 31, 2015 (in thousands) As Previously Reported Adjustments As Restated Operating Activities: Net income $ 4,598 (72 ) $ 4,526 Adjustments to reconcile net income to net cash provided by operating activities: Bad debt expense 62 (69 ) (7 ) Depreciation and amortization 1,553 1,553 Stock-based compensation 646 65 711 Deferred taxes (248 ) (248 ) Excess tax deficiency from exercise of share based compensation (58 ) (58 ) Subtotal before changes in operating assets and liabilities 6,553 (76 ) 6,477 Changes in operating assets and liabilities: Accounts receivable (205 ) 212 7 Prepaid expenses (23 ) (23 ) Federal income taxes (107 ) (126 ) (233 ) Accrued interest receivable (69 ) (69 ) Other assets 40 40 Accounts payable (272 ) (272 ) Accrued expenses 303 303 Deferred revenues 808 (100 ) 708 Other long-term liabilities (8 ) 90 82 Net cash provided by (used in) operating activities 7,020 - 7,020 Investing Activities: Software development costs (1,967 ) (1,967 ) Purchase of property and equipment (152 ) (152 ) Purchase of certificates of deposit - - Net cash provided by (used in) investing activities (2,119 ) - (2,119 ) Financing Activities: Proceeds from exercise of stock options 508 508 Tax deficiency (benefit) from stock-based compensation 58 58 Dividends paid (940 ) (940 ) Net cash provided by (used in) financing activities (374 ) - (374 ) Net increase (decrease) in cash 4,527 4,527 Cash at beginning of period 11,358 11,358 Cash at end of period $ 15,885 $ - $ 15,885 Supplemental disclosure of cash flow information: Cash paid during the period for: Interest $ - $ - $ - Income taxes $ 2,146 $ - $ 2,146

2. Significant Accounting Pol33

2. Significant Accounting Policies (Details) - USD ($)	Jan. 01, 2018	Dec. 31, 2016	Dec. 31, 2015
2. Significant Accounting Policies (Details) [Line Items]
Goodwill, Impairment Loss		$ 0
Advertising Expense		$ 1,900,000	$ 1,600,000
Probability of occurrence of event		50.00%
Subsequent Event [Member]
2. Significant Accounting Policies (Details) [Line Items]
Contract with Customer, Deferred Expense	$ 1,200,000
Contract with Customer, Amortization Expense	$ 186,000
Computer Equipment [Member]
2. Significant Accounting Policies (Details) [Line Items]
Property, Plant and Equipment, Useful Life		3 years
Software and Software Development Costs [Member]
2. Significant Accounting Policies (Details) [Line Items]
Finite-Lived Intangible Asset, Useful Life		3 years
Minimum [Member] | Furniture and Fixtures [Member]
2. Significant Accounting Policies (Details) [Line Items]
Property, Plant and Equipment, Useful Life		5 years
Maximum [Member] | Furniture and Fixtures [Member]
2. Significant Accounting Policies (Details) [Line Items]
Property, Plant and Equipment, Useful Life		7 years

3. Accounts Receiva

3. Accounts Receivable, Net (Details) - Schedule of Accounts, Notes, Loans and Financing Receivable - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Schedule of Accounts, Notes, Loans and Financing Receivable [Abstract]
Total invoices issued and unpaid	$ 6,932	$ 6,407
Less: Unpaid invoices relating to M&S contracts with a start date subsequent to the balance sheet date	(381)	(206)
Gross accounts receivable	6,551	6,201
Allowance for sales returns and doubtful accounts	(263)	(263)	$ (511)
Accounts receivable, net	$ 6,288	$ 5,938

3. Accounts Recei35

3. Accounts Receivable, Net (Details) - Allowance for Credit Losses on Financing Receivables - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Allowance for Credit Losses on Financing Receivables [Abstract]
Balance, beginning of period	$ 263	$ 511
Provision for doubtful accounts and sales returns	182	(7)
Accounts written off	(182)	(241)
Balance, end of period	$ 263	$ 263

4. Property and Equipm

4. Property and Equipment, Net (Details) - Property, Plant and Equipment - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 3,257	$ 3,035
Less accumulated depreciation	(2,801)	(2,537)
Property and equipment, net	456	498
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	636	620
Software and Software Development Costs [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	651	638
Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	1,411	1,218
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 559	$ 559

5. Capitalized Softwar

5. Capitalized Software Development Costs, Net (Details) - Schedule of Finite-Lived Intangible Assets - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Schedule of Finite-Lived Intangible Assets [Abstract]
Gross capitalized cost	$ 7,252	$ 5,714
Accumulated amortization	(3,509)	(1,732)
Net balance	$ 3,743	$ 3,982

5. Capitalized Softw38

5. Capitalized Software Development Costs, Net (Details) - Finite-lived Intangible Assets Amortization Expense - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Finite-lived Intangible Assets Amortization Expense [Abstract]
Amount capitalized	$ 1,538	$ 1,967
Amortization expense	$ (1,777)	$ (1,283)

5. Capitalized Softw39

5. Capitalized Software Development Costs, Net (Details) - Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
5. Capitalized Software Development Costs, Net (Details) - Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Line Items]
Gross capitalized amount at December 31, 2016	$ 7,252	$ 5,714
Accumulated amortization	(3,509)	(1,732)
Net balance	3,743	$ 3,982
Computer Software, Intangible Asset [Member] | Released Products [Member]
5. Capitalized Software Development Costs, Net (Details) - Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Line Items]
Gross capitalized amount at December 31, 2016	6,171
Accumulated amortization	(3,509)
Net balance	2,662
Computer Software, Intangible Asset [Member] | Unreleased Products [Member]
5. Capitalized Software Development Costs, Net (Details) - Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Line Items]
Gross capitalized amount at December 31, 2016	1,081
Accumulated amortization	0
Net balance	$ 1,081

5. Capitalized Softw40

5. Capitalized Software Development Costs, Net (Details) - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense $ in Thousands	Dec. 31, 2016USD ($)
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Abstract]
2,017	$ 1,589
2,018	856
2,019	217
Total	$ 2,662

6. Deferred Revenue (D

6. Deferred Revenue (Details) - Schedule of Deferred Revenue, by Arrangement, Disclosure - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Schedule of Deferred Revenue, by Arrangement, Disclosure [Abstract]
Total invoiced for M&S contracts for which revenue will be recognized in future periods	$ 17,826	$ 16,474
Less: Unpaid invoices relating to M&S agreements with a start date subsequent to the balance sheet date	(381)	(206)
Total deferred revenue	17,445	16,268
Deferred revenue, current portion	13,655	12,460
Deferred revenue, non-current portion	$ 3,790	$ 3,808

7. Commitments and Contingenc42

7. Commitments and Contingencies (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Operating Leases, Rent Expense	$ 347,000	$ 2,016
Deferred Rent Credit	31,000
Other Commitment	$ 1,900,000

7. Commitments and C

7. Commitments and Contingencies (Details) - Schedule of Future Minimum Rental Payments for Operating Leases $ in Thousands	Dec. 31, 2016USD ($)
Schedule of Future Minimum Rental Payments for Operating Leases [Abstract]
2,017	$ 360
2,018	360
2,019	120
Total	$ 840

8. Stock Options, Restricted 44

8. Stock Options, Restricted Stock and Share-Based Compensation (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
8. Stock Options, Restricted Stock and Share-Based Compensation (Details) [Line Items]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	2 years 62 days	2 years 3 days
2015 Directors Plan [Member]
8. Stock Options, Restricted Stock and Share-Based Compensation (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	500,000
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period	1 year
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	340,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized (in Dollars)	$ 90,437
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	4 months
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, Number of Shares Authorized	3,000,000
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	3 years
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period	10 years
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period	90 days
Employee Stock Option [Member] | Executive Officer [Member]
8. Stock Options, Restricted Stock and Share-Based Compensation (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period	90 days
Allocated Share-based Compensation Expense (in Dollars)	$ 108,000
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	4,972,000

8. Stock Options, Re

8. Stock Options, Restricted Stock and Share-Based Compensation (Details) - Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Abstract]
Share-based compensation expense	$ 1,014	$ 711

8. Stock Options, 46

8. Stock Options, Restricted Stock and Share-Based Compensation (Details) - Schedule of Share-based Compensation, Stock Options, Activity - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Schedule of Share-based Compensation, Stock Options, Activity [Abstract]
Number of Shares, Outstanding	2,091,325		2,022,175
Weighted Average Exercise Price, Outstanding	$ 2.45		$ 2.12
Weighted Average Remaining Contractual Term, Outstanding	7 years 69 days	6 years 32 days	6 years 25 days
Aggregate Intrinsic Value, Outstanding	$ 3,281		$ 710
Number of Shares, Exercisable	1,001,570
Weighted Average Exercise Price, Exercisable	$ 2.34
Weighted Average Remaining Contractual Term, Exercisable	4 years 200 days
Aggregate Intrinsic Value, Exercisable	$ 1,733
Number of Shares, Granted	1,257,300	538,000
Weighted Average Exercise Price, Granted	$ 3.58	$ 3.21
Number of Shares, Forfeitures	(404,175)	(154,650)
Weighted Average Exercise Price, Forfeitures	$ 3.14	$ 2.49
Number of Shares, Exercised	(537,445)	(314,200)
Weighted Average Exercise Price, Exercised	$ 2.08	$ 1.61
Number of Shares, Outstanding	2,407,005	2,091,325
Weighted Average Exercise Price, Outstanding	$ 3	$ 2.45
Aggregate Intrinsic Value, Outstanding	$ 2,574	$ 3,281

8. Stock Options, 47

8. Stock Options, Restricted Stock and Share-Based Compensation (Details) - Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable [Abstract]
Weighted average fair value of options granted during the year (in Dollars per share)	$ 1.64	$ 1.60
Intrinsic value of options exercised during the year	$ 880,064	$ 532,224
Cash received from stock options exercised during the year	$ 1,118,177	$ 507,289
Number of options that vested during the year (in Shares)	348,116	307,494
Fair value of options that vested during the year	$ 528,728	$ 385,784
Unrecognized compensation expense related to non-vested options at end of year	$ 1,768,344	$ 891,854
Weighted average years over which non-vested option expense will be recognized	2 years 62 days	2 years 3 days

8. Stock Options, 48

8. Stock Options, Restricted Stock and Share-Based Compensation (Details) - Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range	12 Months Ended
	Dec. 31, 2016$ / sharesshares
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Underlying Shares Outstanding (in Shares) | shares	2,407,005
Options Exercisable, Number of Underlying Shares (in Shares) | shares	1,001,570
$0.85 - $1.43 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, Lower Limit	$ 0.85
Range of Exercise Prices, Upper Limit	$ 1.43
Underlying Shares Outstanding (in Shares) | shares	116,600
Options Outstanding, Weighted Average Remaining Contractual Life	3 years 131 days
Options Outstanding, Weighed Average Exercise Price	$ 1.04
Options Exercisable, Number of Underlying Shares (in Shares) | shares	116,600
Options Exercisable, Weighed Average Exercise Price	$ 1.04
$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
Underlying Shares Outstanding (in Shares) | shares	459,745
Options Outstanding, Weighted Average Remaining Contractual Life	4 years 324 days
Options Outstanding, Weighed Average Exercise Price	$ 1.83
Options Exercisable, Number of Underlying Shares (in Shares) | shares	457,065
Options Exercisable, Weighed 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
Underlying Shares Outstanding (in Shares) | shares	1,172,660
Options Outstanding, Weighted Average Remaining Contractual Life	8 years 47 days
Options Outstanding, Weighed Average Exercise Price	$ 3.22
Options Exercisable, Number of Underlying Shares (in Shares) | shares	295,265
Options Exercisable, Weighed Average Exercise Price	$ 2.87
$3.53 - $4.21 [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	$ 4.21
Underlying Shares Outstanding (in Shares) | shares	658,000
Options Outstanding, Weighted Average Remaining Contractual Life	7 years 288 days
Options Outstanding, Weighed Average Exercise Price	$ 3.78
Options Exercisable, Number of Underlying Shares (in Shares) | shares	132,640
Options Exercisable, Weighed Average Exercise Price	$ 4.10

8. Stock Options, 49

8. Stock Options, Restricted Stock and Share-Based Compensation (Details) - Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Abstract]
Expected volatility	55.00%	61.00%
Expected annual dividend yield	1.50%	1.50%
Risk free rate of return	1.45%	1.58%
Expected option term (years)	6 years	6 years

8. Stock Options, 50

8. Stock Options, Restricted Stock and Share-Based Compensation (Details) - Nonvested Restricted Stock Shares Activity - Restricted Stock [Member] - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
8. Stock Options, Restricted Stock and Share-Based Compensation (Details) - Nonvested Restricted Stock Shares Activity [Line Items]
Number of shares, restricted shares outstanding	80,000	80,000
Grant date fair value per share, restricted shares outstanding	$ 3.34	$ 2.32
Number of shares, shares granted with restrictions	80,000	80,000
Grant date fair value per share, shares granted with restrictions	$ 3.31	$ 3.34
Number of shares, shares vested and restrictions eliminated	(80,000)	(80,000)
Grant date fair value per share, shares vested and restrictions eliminated	$ 3.34	$ 2.32
Total fair value of shares that vested, shares vested and restrictions eliminated	$ 276,000	$ 267,200
Number of shares, restricted shares outstanding	80,000	80,000
Grant date fair value per share, restricted shares outstanding	$ 3.31	$ 3.34

9. Income Taxes (Details)

9. Income Taxes (Details) - USD ($)	Jan. 01, 2018	Dec. 31, 2016	Dec. 31, 2015
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%
Research Tax Credit Carryforward [Member]
9. Income Taxes (Details) [Line Items]
Tax Credit Carryforward, Amount		$ 153,000
Subsequent Event [Member]
9. Income Taxes (Details) [Line Items]
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	21.00%
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		$ 268,000
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	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Schedule of Components of Income Tax Expense (Benefit) [Abstract]
Federal	$ 1,732	$ 2,008
Federal	(92)	(244)
Federal	1,640	1,764
State	179	101
State	(18)	(4)
State	161	97
Total	1,911	2,109
Total	(110)	(248)
Total	$ 1,801	$ 1,861

9. Income Taxes (53

9. Income Taxes (Details) - Schedule of Deferred Tax Assets and Liabilities - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Deferred tax assets:
Deferred revenue	$ 1,229	$ 1,154
Capital loss carryforward	1,099	1,099
Share-based compensation	578	677
Compensation and benefits	278	168
Texas franchise tax R&D credit	153	0
Allowance for doubtful accounts	114	111
Net operating loss carryforward	91	151
Other	56	33
Less valuation allowances:
Capital loss carryforward	(1,099)	(1,099)
Texas franchise tax R&D credit	(153)	0
Total deferred tax assets	2,346	2,294
Deferred tax liabilities:
Intangible assets	1,289	1,339
Depreciation	7	15
Total gross deferred tax liabilities	1,296	1,354
Net deferred tax assets	$ 1,050	$ 940

9. Income Taxes (54

9. Income Taxes (Details) - Schedule of Unrecognized Tax Benefits Roll Forward - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Schedule of Unrecognized Tax Benefits Roll Forward [Abstract]
Balance, beginning of year	$ 90	$ 125
Increases for tax positions related to the current year	22	25
Increases for tax positions related to prior years	9	23
Decreases for tax positions related to prior years	0	(51)
Decreases due to settlements related to prior years	0	(32)
Balance, end of year	$ 121	$ 90

9. Income Taxes (55

9. Income Taxes (Details) - Schedule of Effective Income Tax Rate Reconciliation - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Schedule of Effective Income Tax Rate Reconciliation [Abstract]
Income tax expense at federal statutory rate	$ 1,831	$ 2,172
State taxes, net of federal benefit	100	62
Incentive stock options	55	0
R&D tax credit uncertain tax position (net)	31	(35)
Research and development credit	(176)	(251)
Domestic production activities deduction	(64)	(136)
Other	24	49
Income tax expense per the statement of operations	$ 1,801	$ 1,861

10. Earnings Per S

10. Earnings Per Share (Details) - Schedule of Earnings Per Share, Basic and Diluted - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Numerator for basic and diluted earnings per share:
Net income (in Dollars)	$ 3,585	$ 4,526
Denominators for basic and diluted earnings per share:
Weighted average shares outstanding - basic	21,126	20,824
Dilutive potential common shares
Stock options and awards	551	542
Denominator for diluted earnings per share	21,677	21,366
Net income per common share - basic (in Dollars per share)	$ 0.17	$ 0.22
Net income per common share – diluted (in Dollars per share)	$ 0.17	$ 0.21

11. Dividends (De

11. Dividends (Details) - Schedule of Dividends Payable - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Schedule of Dividends Payable [Abstract]
Dividend per share of common stock	$ 0.060	$ 0.045

12. Employee Benefit Plan (Deta

12. Employee Benefit Plan (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Disclosure Text Block Supplement [Abstract]
Defined Benefit Plan, Contributions by Employer	$ 143,000	$ 126,000

13. Segment and Geographic Di59

13. Segment and Geographic Disclosures (Details)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
13. Segment and Geographic Disclosures (Details) [Line Items]
Number of Operating Segments	1
Sales Revenue, Net [Member] | Customer Concentration Risk [Member]
13. Segment and Geographic Disclosures (Details) [Line Items]
Concentration Risk, Percentage	14.00%	11.00%
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | UNITED STATES
13. Segment and Geographic Disclosures (Details) [Line Items]
Concentration Risk, Percentage	77.00%	76.00%

14. Concentration of Business60

14. Concentration of Business Volume and Credit Risk (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
14. Concentration of Business Volume and Credit Risk (Details) [Line Items]
Cash, FDIC Insured Amount (in Dollars)	$ 750,000
Customer Concentration Risk [Member] | Sales Revenue, Net [Member]
14. Concentration of Business Volume and Credit Risk (Details) [Line Items]
Concentration Risk, Percentage	14.00%	11.00%
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member]
14. Concentration of Business Volume and Credit Risk (Details) [Line Items]
Concentration Risk, Percentage	23.00%	24.00%

15. Restatement (Detai

15. Restatement (Details) - Schedule of Reclassification Adjustments - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2016	Dec. 31, 2015	Dec. 30, 2014
Current assets:
Cash and cash equivalents	$ 8,895	$ 15,885	$ 11,358	$ 8,895	$ 15,885
Short term investments				2,754	3,254
Accounts receivable, net				6,288	5,938
Federal income tax receivable				292	545
Prepaid and other expenses				531	511
Total current assets				18,760	26,133
Long term investments				12,779	0
Property and equipment, net				456	498
Capitalized software development costs, net				3,743	3,982
Goodwill				12,712	12,712
Deferred tax asset, net				1,050	940
Other assets				245	60
Total assets				49,745	44,325
Current liabilities:
Accounts payable				930	839
Accrued expenses				1,603	1,893
Deferred revenue				13,655	12,460
Total current liabilities				16,188	15,192
Deferred revenue, non-current portion				3,790	3,808
Other long term liabilities				152	134
Common stock				22	21
Additional paid-in capital				21,756	19,647
Treasury stock				(1,452)	(1,452)
Retained earnings				9,289	6,975
Total stockholders’ equity	29,615	25,191	20,328	29,615	25,191
Total liabilities and stockholders’ equity				49,745	44,325
Operating revenues:
Software licenses	11,243	12,023
Maintenance and support	18,668	16,489
Professional services	2,684	2,223
Total revenues	32,595	30,735
Costs of revenues
Software licenses	3,071	2,428
Maintenance and support	1,537	1,470
Professional services	1,684	1,395
Total costs of revenues	6,292	5,293
Gross Profit	26,303	25,442
Operating expenses
Sales and marketing	11,558	10,431
General and administrative	6,947	6,131
Research and development	2,571	2,571
Total operating expenses	21,076	19,133
Income from operations	5,227	6,309
Other income (expense), net:
Interest expense	0	(4)
Interest income		82
Total other income (expense), net		78
Other income	159
Income before income taxes	5,386	6,387
Income tax expense	1,801	1,861
Net income	3,585	4,526
Adjustments to reconcile net income to net cash provided by operating activities:
Bad debt expense	182	(7)
Depreciation and amortization	2,045	1,553
Stock-based compensation	1,014	711
Deferred taxes	(110)	(248)
Excess tax deficiency from exercise of share based compensation	24	(58)
Subtotal before changes in operating assets and liabilities	6,740	6,477
Changes in operating assets and liabilities:
Accounts receivable	(532)	7
Prepaid expenses	(20)	(23)
Federal income taxes	229	(233)
Accrued interest receivable	(163)	(69)
Other assets	(185)	40
Accounts payable	91	(272)
Accrued expenses	(290)	303
Deferred revenues	1,177	708
Other long-term liabilities	18	82
Comprehensive income	$ 3,585	$ 4,526
Net income per common share - basic (in Dollars per share)	$ 0.17	$ 0.22
Net income per common share - diluted (in Dollars per share)	$ 0.17	$ 0.21
Weighted average shares outstanding:
Basic (in Shares)	21,126,000	20,824,000
Diluted (in Shares)	21,677,000	21,366,000
Cash dividends declared per share (in Dollars per share)	$ 0.06
Net income	$ 3,585	$ 4,526
Net cash provided by operating activities	7,065	7,020
Investing Activities:
Software development costs	(1,538)	(1,967)
Purchase of property and equipment	(226)	(152)
Purchase of certificates of deposit	(12,116)	0
Net cash (used in) investing activities	(13,880)	(2,119)
Financing Activities:
Proceeds from exercise of stock options	1,120	508
Tax deficiency (benefit) from stock-based compensation	(24)	58
Dividends paid	(1,271)	(940)
Net cash (used in) financing activities	(175)	(374)
Net increase (decrease) in cash	(6,990)	4,527
Cash at beginning of period	15,885	11,358
Cash at end of period	8,895	15,885	11,358
Income taxes	1,638	2,146
Balance	25,191	20,328
Shares issued upon exercise of stock options	$ 1,120	$ 508
Shares issued upon exercise of stock options (in Shares)	537,445	314,200
Tax benefit (deficiency) from stock-based compensation	$ (24)	$ 58
Stock-based compensation expense
Stock options	741	464
Restricted stock	273	247
Common stock cash dividends	(1,271)	(940)
Stockholders’ Equity:
Balance	29,615	25,191	20,328
Common Stock [Member]
Current liabilities:
Total stockholders’ equity	21	21	$ 21	22	21
Financing Activities:
Balance	$ 21	$ 21
Balance (in Shares)	21,920,912	21,303,467	20,909,267
Shares issued upon exercise of stock options	$ 1
Shares issued upon exercise of stock options (in Shares)	537,445	314,200
Stock-based compensation expense
Restricted stock (in Shares)	80,000	80,000
Stockholders’ Equity:
Balance	$ 22	$ 21	$ 21
Additional Paid-in Capital [Member]
Current liabilities:
Total stockholders’ equity	19,647	18,370	18,370	21,756	19,647
Financing Activities:
Balance	19,647	18,370
Shares issued upon exercise of stock options	1,119	508
Tax benefit (deficiency) from stock-based compensation	(24)	58
Stock-based compensation expense
Stock options	741	464
Restricted stock	273	247
Stockholders’ Equity:
Balance	21,756	19,647	18,370
Treasury Stock [Member]
Current liabilities:
Total stockholders’ equity	(1,452)	(1,452)	(1,452)	(1,452)	(1,452)
Financing Activities:
Balance	(1,452)	(1,452)
Stockholders’ Equity:
Balance	(1,452)	(1,452)	(1,452)
Retained Earnings [Member]
Current liabilities:
Total stockholders’ equity	6,975	3,389	3,389	9,289	6,975
Other income (expense), net:
Net income	3,585	4,526
Weighted average shares outstanding:
Net income	3,585	4,526
Financing Activities:
Balance	6,975	3,389
Stock-based compensation expense
Common stock cash dividends	(1,271)	(940)
Stockholders’ Equity:
Balance	9,289	6,975	3,389
Scenario, Previously Reported [Member]
Current assets:
Cash and cash equivalents	8,895	15,885	11,358	8,895	15,885
Short term investments				2,754	3,254
Accounts receivable, net				6,964	6,081
Federal income tax receivable				169	290
Prepaid and other expenses				521	511
Total current assets				19,303	26,021
Long term investments				12,779
Property and equipment, net				456	498
Capitalized software development costs, net				3,743	3,982
Goodwill				12,712	12,712
Deferred tax asset, net				942	940
Other assets				245	60
Total assets				50,180	44,213
Current liabilities:
Accounts payable				876	839
Accrued expenses				1,836	1,893
Deferred revenue				13,655	12,000
Income taxes payable					127
Total current liabilities				16,367	14,859
Deferred revenue, non-current portion				3,790	3,612
Other long term liabilities				147	44
Common stock				22	21
Additional paid-in capital				21,650	19,582
Treasury stock				(1,452)	(1,452)
Retained earnings				9,656	7,547
Total stockholders’ equity	29,876	20,828	20,828	29,876	25,698	$ 20,828
Total liabilities and stockholders’ equity				50,180	44,213
Operating revenues:
Software licenses	11,984	12,023
Maintenance and support	18,668	16,595
Professional services	2,684	2,223
Total revenues	33,336	30,841
Costs of revenues
Software licenses	3,110	2,428
Maintenance and support	1,541	1,466
Professional services	1,671	1,775
Total costs of revenues	6,322	5,669
Gross Profit	27,014	25,172
Operating expenses
Sales and marketing	11,682	10,025
General and administrative	6,975	6,168
Research and development	2,539	2,562
Total operating expenses	21,196	18,755
Income from operations	5,818	6,417
Other income (expense), net:
Interest expense		(4)
Interest income		82
Total other income (expense), net		78
Other income	159
Income before income taxes	5,977	6,495
Income tax expense	2,026	1,897
Net income	3,951	4,598
Adjustments to reconcile net income to net cash provided by operating activities:
Bad debt expense	72	62
Depreciation and amortization	2,045	1,553
Stock-based compensation	973	646
Deferred taxes	(2)	(248)
Excess tax deficiency from exercise of share based compensation	24	(58)
Subtotal before changes in operating assets and liabilities	7,063	6,553
Changes in operating assets and liabilities:
Accounts receivable	(1,161)	(205)
Prepaid expenses	(10)	(23)
Federal income taxes	352	(107)
Accrued interest receivable	(163)	(69)
Other assets	(185)	40
Accounts payable	37	(272)
Accrued expenses	(58)	303
Deferred revenues	1,177	808
Other long-term liabilities	13	(8)
Comprehensive income	$ 3,951	$ 4,598
Net income per common share - basic (in Dollars per share)	$ 0.19	$ 0.22
Net income per common share - diluted (in Dollars per share)	$ 0.18	$ 0.22
Weighted average shares outstanding:
Basic (in Shares)	21,126,000
Diluted (in Shares)	21,677,000
Cash dividends declared per share (in Dollars per share)	$ 0.06
Net income	$ 3,951	$ 4,598
Net cash provided by operating activities	7,065	7,020
Investing Activities:
Software development costs	(1,538)	(1,967)
Purchase of property and equipment	(226)	(152)
Purchase of certificates of deposit	(12,116)
Net cash (used in) investing activities	(13,880)	(2,119)
Financing Activities:
Proceeds from exercise of stock options	1,120	508
Tax deficiency (benefit) from stock-based compensation	(24)	58
Dividends paid	(1,271)	(940)
Net cash (used in) financing activities	(175)	(374)
Net increase (decrease) in cash	(6,990)	4,527
Cash at beginning of period	15,885	11,358
Cash at end of period	8,895	15,885	11,358
Income taxes	1,638	2,146
Balance	25,698	20,828
Stockholders’ Equity:
Balance	29,876	25,698	20,828
Scenario, Previously Reported [Member] | Common Stock [Member]
Current liabilities:
Total stockholders’ equity		21	$ 21			21
Financing Activities:
Balance		21
Balance (in Shares)			20,989,267
Stockholders’ Equity:
Balance			$ 21
Scenario, Previously Reported [Member] | Additional Paid-in Capital [Member]
Current liabilities:
Total stockholders’ equity		18,370	18,370			18,370
Financing Activities:
Balance		18,370
Stockholders’ Equity:
Balance			18,370
Scenario, Previously Reported [Member] | Treasury Stock [Member]
Current liabilities:
Total stockholders’ equity		(1,452)	(1,452)			(1,452)
Financing Activities:
Balance		(1,452)
Stockholders’ Equity:
Balance			(1,452)
Scenario, Previously Reported [Member] | Retained Earnings [Member]
Current liabilities:
Total stockholders’ equity		3,889	3,889			$ 3,889
Financing Activities:
Balance		3,889
Stockholders’ Equity:
Balance			3,889
Scenario, Adjustment [Member]
Current assets:
Accounts receivable, net				(676)	(143)
Federal income tax receivable				123	255
Prepaid and other expenses				10
Total current assets				(543)	112
Deferred tax asset, net				108
Total assets				(435)	112
Current liabilities:
Accounts payable				54
Accrued expenses				(233)
Deferred revenue					460
Income taxes payable					(127)
Total current liabilities				(179)	333
Deferred revenue, non-current portion					196
Other long term liabilities				5	90
Additional paid-in capital				106	65
Retained earnings				(367)	(572)
Total stockholders’ equity	(261)	(507)		(261)	(507)
Total liabilities and stockholders’ equity				$ (435)	$ 112
Operating revenues:
Software licenses	(741)
Maintenance and support		(106)
Total revenues	(741)	(106)
Costs of revenues
Software licenses	(39)
Maintenance and support	(4)	4
Professional services	13	(380)
Total costs of revenues	(30)	(376)
Gross Profit	(711)	270
Operating expenses
Sales and marketing	(124)	406
General and administrative	(28)	(37)
Research and development	32	9
Total operating expenses	(120)	378
Income from operations	(591)	(108)
Other income (expense), net:
Income before income taxes	(591)	(108)
Income tax expense	(225)	(36)
Net income	(366)	(72)
Adjustments to reconcile net income to net cash provided by operating activities:
Bad debt expense	110	(69)
Stock-based compensation	41	65
Deferred taxes	(108)
Subtotal before changes in operating assets and liabilities	(323)	(76)
Changes in operating assets and liabilities:
Accounts receivable	629	212
Prepaid expenses	(10)
Federal income taxes	(123)	(126)
Accounts payable	54
Accrued expenses	(232)
Deferred revenues		(100)
Other long-term liabilities	5	90
Comprehensive income	$ (366)	(72)
Net income per common share - basic (in Dollars per share)	$ (0.02)
Net income per common share - diluted (in Dollars per share)	$ (0.02)
Weighted average shares outstanding:
Basic (in Shares)	21,126,000
Diluted (in Shares)	21,677,000
Net income	$ (366)	(72)
Financing Activities:
Balance	(507)
Stockholders’ Equity:
Balance	(261)	(507)
Restatement Adjustment [Member]
Stockholders’ Equity:
Adjustment	$ (366)	$ (72)	$ (500)
Restatement Adjustment [Member] | Common Stock [Member]
Stockholders’ Equity:
Adjustment (in Shares)			(80,000)
Restatement Adjustment [Member] | Retained Earnings [Member]
Stockholders’ Equity:
Adjustment			$ (500)

15. Restatement (Det62

15. Restatement (Details) - Schedule of Reclassification Adjustments (Parentheticals) - $ / shares	Dec. 31, 2016	Dec. 31, 2015
15. Restatement (Details) - Schedule of Reclassification Adjustments (Parentheticals) [Line Items]
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, shares authorized	40,000,000	40,000,000
Common stock, shares issued	21,920,912	21,303,467
Treasury stock, shares	403,581	403,581
Scenario, Previously Reported [Member]
15. Restatement (Details) - Schedule of Reclassification Adjustments (Parentheticals) [Line Items]
Preferred stock par value (in Dollars per share)	$ 0.001
Preferred stock, shares authorized	10,000,000
Preferred stock, shares issued	0
Preferred stock, shares outstanding	0
Common stock par value (in Dollars per share)	$ 0.001
Common stock, shares authorized	40,000,000
Common stock, shares issued	21,920,912
Scenario, Adjustment [Member]
15. Restatement (Details) - Schedule of Reclassification Adjustments (Parentheticals) [Line Items]
Preferred stock par value (in Dollars per share)	$ 0.001
Preferred stock, shares authorized	10,000,000
Preferred stock, shares issued	0
Preferred stock, shares outstanding	0
Common stock par value (in Dollars per share)	$ 0.001
Common stock, shares authorized	40,000,000
Common stock, shares issued	21,920,912