Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Nov. 13, 2017 | |
Document And Entity Information | ||
Entity Registrant Name | MobileSmith, Inc. | |
Entity Central Index Key | 1,113,513 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Is Entity a Well-known Seasoned Issuer? | No | |
Is Entity a Voluntary Filer? | No | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 24,722,647 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,017 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Current assets | ||
Cash and cash equivalents | $ 1,443,262 | $ 548,146 |
Restricted cash | 61,713 | 116,577 |
Trade Accounts Receivable | 267,939 | 273,091 |
Prepaid expenses and other current assets | 49,549 | 64,642 |
Total current assets | 1,822,463 | 1,002,456 |
Property and equipment, net | 81,647 | 104,129 |
Capitalized software, net | 195,903 | 274,833 |
Intangible assets, net | 24,469 | 37,593 |
Total Other Assets | 302,019 | 416,555 |
TOTAL ASSETS | 2,124,482 | 1,419,011 |
Current liabilities | ||
Trade Accounts Payable | 84,059 | 43,518 |
Accrued Expenses | 178,673 | 193,836 |
Accrued interest | 881,242 | 455,269 |
Capital Lease Obligations | 36,624 | 36,950 |
Deferred revenue | 1,239,165 | 1,404,951 |
Bank Loan | 5,000,000 | 0 |
Total current liabilities | 7,419,763 | 2,134,524 |
Long-term liabilities: | ||
Bank Loan | 0 | 5,000,000 |
Convertible Notes Payable, Related Parties, Net of Discount | 43,788,609 | 39,655,579 |
Convertible Notes Payable, Net of Discount | 680,640 | 680,640 |
Capital Lease Obligations | 36,733 | 63,834 |
Deferred Rent | 30,839 | 42,189 |
Total long-term liabilities | 44,536,821 | 45,442,242 |
Total liabilities | 51,956,584 | 47,576,766 |
Commitments and Contingencies (Note 3) | ||
Stockholders' deficit: | ||
Preferred Stock, $0.001 Par Value, 5,000,000 Shares Authorized, No Shares Issued and Outstanding at September 30, 2017 and December 31, 2016 | 0 | 0 |
Common Stock, $0.001 Par Value, 100,000,000 Shares Authorized At September 30, 2017 and December 31, 2016; 19,827,542 Shares Issued and Outstanding at September 30, 2017 and December 31, 2016 | 19,828 | 19,828 |
Additional paid-in capital | 98,650,709 | 98,245,063 |
Accumulated deficit | (148,502,639) | (144,422,646) |
Total stockholders' deficit | (49,832,102) | (46,157,755) |
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | $ 2,124,482 | $ 1,419,011 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Allowance for Doubtful Accounts | $ 12,500 | $ 0 |
Stockholders' equity: | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, authorized | 5,000,000 | 5,000,000 |
Preferred stock, issued | 0 | 0 |
Preferred stock, outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, authorized | 100,000,000 | 100,000,000 |
Common stock, issued | 19,827,542 | 19,827,542 |
Common stock, outstanding | 19,827,542 | 19,827,542 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
REVENUES: | ||||
Subscription and Support | $ 1,886,344 | $ 415,166 | $ 2,932,687 | $ 1,380,465 |
Professional Services and Other | 0 | 0 | 0 | 4,154 |
Total revenues | 1,886,344 | 415,166 | 2,932,687 | 1,384,619 |
COST OF REVENUES | ||||
Subscription and Support | 147,535 | 138,175 | 431,457 | 346,544 |
Professional Services and Other | 0 | 11,418 | 29,304 | 67,660 |
Total Cost of Revenue | 147,535 | 149,593 | 460,761 | 414,204 |
GROSS PROFIT | 1,738,809 | 265,573 | 2,471,926 | 970,415 |
OPERATING EXPENSES: | ||||
Sales and marketing | 299,559 | 288,129 | 865,181 | 849,303 |
Research and development | 406,113 | 446,490 | 1,295,647 | 1,253,889 |
General and administrative | 367,342 | 257,615 | 1,165,708 | 1,009,976 |
Total operating expenses | 1,073,014 | 992,234 | 3,326,536 | 3,113,168 |
INCOME (LOSS) FROM OPERATIONS | 665,795 | (726,661) | (854,610) | (2,142,753) |
OTHER INCOME (EXPENSE): | ||||
Other Income | 365 | 153,918 | 1,549 | 165,486 |
Interest expense, net | (1,104,318) | (997,730) | (3,226,932) | (3,701,073) |
Total Other Expense | (1,103,953) | (843,812) | (3,225,383) | (3,535,587) |
NET LOSS | $ (438,158) | $ (1,570,473) | $ (4,079,993) | $ (5,678,340) |
NET LOSS PER COMMON SHARE: | ||||
Basic and Fully Diluted | $ (0.02) | $ (0.08) | $ (0.21) | $ (0.29) |
WEIGHTED-AVERAGE NUMBER OF SHARES USED IN COMPUTING NET LOSS PER COMMON SHARE: | ||||
Basic and fully diluted | 19,827,542 | 19,827,542 | 19,827,542 | 19,827,542 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (4,079,993) | $ (5,678,340) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 122,873 | 123,324 |
Bad Debt Expense | 12,500 | 33,300 |
Amortization of Debt Discount | 486,527 | 1,248,736 |
Share Based Compensation | 327,149 | 63,309 |
Impairment of long lived assets | 8,356 | |
Changes in assets and liabilities: | ||
Accounts Receivable | (7,348) | (81,805) |
Prepaid Expenses and Other Assets | 15,093 | 9,563 |
Accounts Payable | 40,541 | 13,633 |
Deferred revenue | (165,786) | 353,595 |
Accrued and other expenses | 399,462 | (33,583) |
Net Cash Used in Operating Activities | (2,848,982) | (3,939,912) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Payments to Acquire Property, Plant and Equipment | (8,339) | (26,483) |
Net Cash Used in Investing Activities | (8,339) | (26,483) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Restricted cash used to pay interest expense | 166,812 | 166,610 |
Deposit of Cash to Restricted Account | (111,948) | (114,765) |
Proceeds from Other Short-term Debt | 150,000 | 0 |
Repayment of Other Short-term Debt | (150,000) | 0 |
Proceeds from Issuance of Long Term Debt | 3,725,000 | 3,750,000 |
Repayments of debt borrowings | (27,427) | (22,911) |
Net cash provided by financing activities | 3,752,437 | 3,778,934 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 895,116 | (187,461) |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 548,146 | 580,220 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 1,443,262 | 392,759 |
Supplemental disclosures of cash flow information: | ||
Cash paid during the period for: Interest | 2,314,434 | 2,397,504 |
The Company Recorded Debt Discount Associated with Beneficial Conversion Feature | 78,497 | 533,216 |
Financed purchase of a vehicle | $ 0 | $ 18,365 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' DEFICIT (Unaudited) - 9 months ended Sep. 30, 2017 - USD ($) | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Total |
Beginning Balance, shares at Dec. 31, 2016 | 19,827,542 | |||
Beginning Balance, amount at Dec. 31, 2016 | $ 19,828 | $ 98,245,063 | $ (144,422,646) | $ (46,157,755) |
Equity-Based Compensation | 327,149 | 327,149 | ||
Beneficial Conversion Feature Recorded as a Result of Issuance of Convertible Debt | 78,497 | 78,497 | ||
Net loss | (4,079,993) | (4,079,993) | ||
Ending Balance, shares at Sep. 30, 2017 | 19,827,542 | |||
Ending Balance, amount at Sep. 30, 2017 | $ 19,828 | $ 98,650,709 | $ (148,502,639) | $ (49,832,102) |
1. DESCRIPTION OF BUSINESS AND
1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | MobileSmith, Inc. (referred to herein as the “Company,” “us,” “we,” or “our”) was incorporated as Smart Online, Inc. in the State of Delaware in 1993. The Company changed its name to MobileSmith, Inc. effective July 1, 2013. The Company develops solutions for healthcare industry that focus on improvements in delivery of healthcare by means of mobile technology. The Company’s flagship product is the MobileSmith® Platform (the “Platform”). The Platform is an innovative hosted set of tools that enables organizations to rapidly create, deploy, and manage custom, native smartphone and tablet apps specific to healthcare industry deliverable across iOS and Android mobile platforms without writing a single line of code. The Platform has applications in other industries and has been successfully deployed in retail and real estate operations. These condensed consolidated financial statements include accounts of the Company and its wholly owned subsidiary, which was created to explore the concept of a consumer targeted mobile app development platform. From time to time, the Company may create additional wholly-owned subsidiaries in order to test various new services as a part of its research and development process. The subsidiary has not had material activity in 2017. The Company’s principal products and services include: ● Subscription to its Software as a Service ("SaaS") cloud based mobile app development platform to customers who design and build their own apps; ● Managed services for custom mobile application design, development and implementation; ● Mobile application marketing services; and ● Mobile strategy implementation consulting. The Company prepared the accompanying unaudited condensed consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Pursuant to these rules and regulations, the Company has condensed or omitted certain information and footnote disclosures it normally includes in its audited annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). In management’s opinion, the Company has made all adjustments (consisting only of normal, recurring adjustments, except as otherwise indicated) necessary to fairly present its financial position, results of operations, cash flows, and stockholders’ deficit as of September 30, 2017. The Company’s interim period operating results do not necessarily indicate the results that may be expected for any other interim period or for the full fiscal year. These condensed consolidated financial statements and accompanying notes should be read in conjunction with the audited annual consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016 on file with the SEC (the “Annual Report”). Except as otherwise noted, there have been no material changes to the Company’s significant accounting policies as compared to the significant accounting policies described in the Annual Report. The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. During the nine months ended September 30, 2017 and 2016, the Company incurred net losses as well as negative cash flows from operations. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts or classification of liabilities that might be necessary should the Company be unable to continue as a going concern. Recently Issued Accounting Pronouncements The Company evaluates new significant accounting pronouncements at each reporting period. For the period ended September 30, 2017, the Company did not adopt any new pronouncement that had or is expected to have a material effect on the Company’s presentation of its condensed consolidated financial statements. In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-9 Revenue from Contracts with Customers (Topic 606). This guidance requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This guidance is effective for annual reporting periods beginning after December 15, 2017, and early adoption is permitted. Originally the Company planned to adopt the standard early. During the current period the Company concluded that costs of early adoption outweigh the anticipated benefits during the upcoming year and concluded that the adoption will take place with the period beginning on January 1, 2018, in compliance with the issued standards. The Company has commenced work to assess the impact of the new revenue standard on its principal revenue streams. The Company has not made a determination on the impact to its consolidated financial statements. The Company is implementing changes to its accounting processes, internal controls and disclosures to support the new accounting. |
2. DEBT
2. DEBT | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
2. DEBT | The table below summarizes the Company’s debt outstanding at September 30, 2017 and December 31, 2016: Debt Description September 30, December 31, 2017 2016 Comerica Bank Loan and Security Agreement $ 5,000,000 $ 5,000,000 June 2018 4.85 % Capital lease obligations - Noteholder lease 51,583 69,717 August 2019 8.00 % Capital lease obligations - office furniture and other equipment 7,248 14,044 August 2018 9.80 % Capital lease obligations - vehicle 14,526 17,023 July 2021 5.59 % Convertible notes - related parties, net of discount of $760,622 and $1,168,652, respectively 43,788,609 39,655,579 November 2018 8.00 % Convertible notes, net of discount of $50,129 680,640 680,640 November 2018 8.00 % Total debt 49,542,606 45,437,003 Less: current portion of long term debt Capital lease obligations 36,624 36,950 Comerica Bank Loan and Security Agreement 5,000,000 — Total current portion of long term debt 5,036,624 36,950 Debt - long term $ 44,505,982 $ 45,400,053 Convertible Notes During the nine months ended September 30, 2017, the Company privately placed $3,725,000 in principal amount of additional unsecured Convertible Subordinated Notes unsecured Convertible Subordinated Note Purchase Agreement dated December 10, 2014 The table below summarizes convertible notes issued as of September 30, 2017 by type: Convertible Notes Type: Balance 2007 NPA notes, net of discount $ 30,020,339 2014 NPA notes, net of discount 14,448,910 Total convertible notes, net of discount $ 44,469,249 Comerica LSA The Company has an outstanding Loan and Security Agreement with Comerica Bank dated June 9, 2014 in the amount of $5,000,000, with an extended maturity date of June 6, 2018. |
3. COMMITMENTS AND CONTINGENCIE
3. COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
3. COMMITMENTS AND CONTINGENCIES | Aggregate future lease commitments The Company leases computers, office equipment, office furniture and a company vehicle under capital lease agreements that expire through July 2021. Total amount financed under these capital leases at September 30, 2017 was $73,357. This obligation is included within the Company’s total debt. The table below summarizes Company’s future obligations under its capital leases: Year: 2017 $ 10,869 2018 38,345 2019 23,631 2020 4,219 Thereafter 2,461 79,525 Less amount representing interest (6,168) Capital lease obligations $ 73,357 The Company leases its office space in Raleigh, North Carolina pursuant to a lease with an initial term that expires in March 2019. The lease contains an option to renew for two additional three-year lease terms. The table below summarizes the Company’s future obligation under its office lease: Year: 2017 $ 42,524 2018 172,418 2019 44,082 Total $ 259,024 Legal Proceedings From time to time, the Company may be subject to routine litigation, claims or disputes in the ordinary course of business. The Company defends itself vigorously in all such matters. In the opinion of management, no pending or known threatened claims, actions or proceedings against the Company are expected to have a material adverse effect on its financial position, results of operations or cash flows. However, the Company cannot predict with certainty the outcome or effect of any such litigation or investigatory matters or any other pending litigations or claims. There can be no assurance as to the ultimate outcome of any such lawsuits and investigations. The Company will record a liability when it believes that it is both probable that a loss has been incurred and the amount can be reasonably estimated. The Company periodically evaluates developments in its legal matters that could affect the amount of liability that it has previously accrued, if any, and makes adjustments as appropriate. Significant judgment is required to determine both the likelihood of there being, and the estimated amount of, a loss related to such matters, and the Company’s judgment may be incorrect. The outcome of any proceeding is not determinable in advance. Until the final resolution of any such matters that the Company may be required to accrue for, there may be an exposure to loss in excess of the amount accrued, and such amounts could be material. |
4. EQUITY AND EQUITY BASED COMP
4. EQUITY AND EQUITY BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
4. EQUITY COMPENSATION | As of September 30, 2017, options to purchase 2,164,006 shares of Common Stock were granted under 2016 Equity Compensation Plan, in addition to 172,406 options granted under previous plans. The following is a summary of the stock option activity for the nine months ended September 30, 2017: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding, December 31, 2016 2,184,160 Cancelled (185,894 1.52 Issued 338,146 1.4 Outstanding, September 30, 2017 2,336,412 $ 1.47 4.1 90,445 Vested and exercisable, September 30, 2017 834,527 $ 1.5 3.25 $ 52,146 Aggregate intrinsic value represents the difference between the closing price of the Company’s common stock at September 30, 2017 and the exercise price of outstanding, in-the-money stock options. The closing price of the common stock at September 30, 2017, as reported on the OTCQB Venture Marketplace, was $1.50 per share. At September 30, 2017, $1,078,227 unvested expense has yet to be recorded related to outstanding stock options. |
5. MAJOR CUSTOMERS AND CONCENTR
5. MAJOR CUSTOMERS AND CONCENTRATION | 9 Months Ended |
Sep. 30, 2017 | |
Risks and Uncertainties [Abstract] | |
5. MAJOR CUSTOMERS AND CONCENTRATION | For the nine months ended September 30, 2017, one major customer accounted for 54% of total revenues and three customers accounted for 84% of the accounts receivable balance. For the nine months ended September 30, 2016, one major customer accounted for 16% of total revenues and three customers accounted for 67% of the accounts receivable balance. |
6. SUBSEQUENT EVENTS
6. SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2017 | |
Subsequent Events [Abstract] | |
6. SUBSEQUENT EVENTS | On October 24, 2017 the Company issued a total of 4,895,105 shares of its common stock to UBP upon UBP’s conversion of $7 million in principal amount of 2007 NPA notes. |
2. DEBT (Tables)
2. DEBT (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Company's debt | Debt Description September 30, December 31, 2017 2016 Comerica Bank Loan and Security Agreement $ 5,000,000 $ 5,000,000 June 2018 4.85 % Capital lease obligations - Noteholder lease 51,583 69,717 August 2019 8.00 % Capital lease obligations - office furniture and other equipment 7,248 14,044 August 2018 9.80 % Capital lease obligations - vehicle 14,526 17,023 July 2021 5.59 % Convertible notes - related parties, net of discount of $760,622 and $1,168,652, respectively 43,788,609 39,655,579 November 2018 8.00 % Convertible notes, net of discount of $50,129 680,640 680,640 November 2018 8.00 % Total debt 49,542,606 45,437,003 Less: current portion of long term debt Capital lease obligations 36,624 36,950 Comerica Bank Loan and Security Agreement 5,000,000 — Total current portion of long term debt 5,036,624 36,950 Debt - long term $ 44,505,982 $ 45,400,053 |
Summary of convertible notes | Convertible Notes Type: Balance 2007 NPA notes, net of discount $ 30,020,339 2014 NPA notes, net of discount 14,448,910 Total convertible notes, net of discount $ 44,469,249 |
3. COMMITMENTS AND CONTINGENC14
3. COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Company's future obligations under its capital leases | Year: 2017 $ 10,869 2018 38,345 2019 23,631 2020 4,219 Thereafter 2,461 79,525 Less amount representing interest (6,168) Capital lease obligations $ 73,357 |
Company's future obligation under the office lease | Year: 2017 $ 42,524 2018 172,418 2019 44,082 Total $ 259,024 |
4. EQUITY AND EQUITY BASED CO15
4. EQUITY AND EQUITY BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Equity And Equity Based Compensation Tables | |
Schedule of Stock Options Outstanding | Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding, December 31, 2016 2,184,160 Cancelled (185,894 1.52 Issued 338,146 1.4 Outstanding, September 30, 2017 2,336,412 $ 1.47 4.1 90,445 Vested and exercisable, September 30, 2017 834,527 $ 1.5 3.25 $ 52,146 |
2. DEBT (Details)
2. DEBT (Details) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Debt Details | ||
Comerica Bank LSA | $ 5,000,000 | $ 5,000,000 |
Capital leases obligations - Noteholder lease | 51,583 | 69,717 |
Capital lease obligations - Office furniture and other equipment | 7,248 | 14,044 |
Capital lease obligations - vehicle | 14,526 | 17,023 |
Convertible notes - related parties, net of discount of $760,622 and $1,168,652, respectively | 43,788,609 | 39,655,579 |
Convertible notes, net of discount of $50,129 | 680,640 | 680,640 |
Total debt | 49,542,606 | 45,437,003 |
Less: current portion of long term debt | ||
Capital lease obligations | 36,624 | 36,950 |
Comerica Bank LSA | 5,000,000 | 0 |
Total current portion of long term debt | 5,036,624 | 36,950 |
Debt - long term | $ 44,505,982 | $ 45,400,053 |
2. DEBT (Details 1)
2. DEBT (Details 1) | Sep. 30, 2017USD ($) |
Convertible notes, net of discount | $ 44,469,249 |
2007 NPA notes, net of discount | |
Convertible notes, net of discount | 30,020,339 |
2014 NPA notes | |
Convertible notes, net of discount | $ 14,448,910 |
3. COMMITMENTS AND CONTINGENC18
3. COMMITMENTS AND CONTINGENCIES (Details) | Sep. 30, 2017USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,017 | $ 10,869 |
2,018 | 38,345 |
2,019 | 23,631 |
2,020 | 4,219 |
Thereafter | 2,461 |
Total | 79,525 |
Less amount representing interest | (6,168) |
Capital lease obligations | $ 73,357 |
3. COMMITMENTS AND CONTINGENC19
3. COMMITMENTS AND CONTINGENCIES (Details 1) | Sep. 30, 2017USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,017 | $ 42,524 |
2,018 | 172,418 |
2,019 | 44,082 |
Total | $ 259,024 |
4. EQUITY AND EQUITY BASED CO20
4. EQUITY AND EQUITY BASED COMPENSATION (Details) | 9 Months Ended |
Sep. 30, 2017USD ($)$ / sharesshares | |
Equity And Equity Based Compensation Details | |
Number of Shares Outstanding, Beginning | 2,184,160 |
Number of Shares Cancelled | (185,894) |
Number of Shares Issued | 338,146 |
Number of Shares Outstanding, Ending | 2,336,412 |
Stock Options Vested and Exercisable Number of Shares | 834,527 |
Weighted Average Exercise Price Outstanding, Beginning | $ / shares | $ 1.52 |
Weighted Average Exercise Price Cancelled | $ / shares | 1.40 |
Weighted Average Exercise Price Outstanding, Ending | $ / shares | 1.47 |
Weighted Average Exercise Price Vested and exercisable, Ending | $ / shares | $ 1.50 |
Weighted Average Remaining Contractual Life (in years) Outstanding | 4 years 1 month 6 days |
Weighted Average Remaining Contractual Life (in years) Vested and expected to vest | 3 years 3 months |
Aggregate Intrinsic Value Outstanding | $ | $ 90,445 |
Aggregate Intrinsic Value vested and expected to vest | $ | $ 52,146 |
5. MAJOR CUSTOMERS AND CONCEN21
5. MAJOR CUSTOMERS AND CONCENTRATION OF CREDIT RISK (Details Narrative) | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
One Customers | ||
Percentage of revenues from major customers | 54.00% | 16.00% |
Three Customers | ||
Percentage of accounts receivables from major customers | 84.00% | 67.00% |