Sajan 10-Q 12 Nov 13 2013 Q3 Quarterly report Financial data

Document_And_Entity_Informatio

Document And Entity Information	9 Months Ended
	Sep. 30, 2013	Nov. 08, 2013
Document Information [Line Items]	'	'
Entity Registrant Name	'SAJAN INC	'
Entity Central Index Key	'0001118037	'
Current Fiscal Year End Date	'--12-31	'
Entity Filer Category	'Smaller Reporting Company	'
Trading Symbol	'SAJA	'
Entity Common Stock, Shares Outstanding	'	16,268,393
Document Type	'10-Q	'
Amendment Flag	'false	'
Document Period End Date	30-Sep-13	'
Document Fiscal Period Focus	'Q3	'
Document Fiscal Year Focus	'2013	'

CONDENSED_CONSOLIDATED_BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Sep. 30, 2013	Dec. 31, 2012
Assets	'	'
Cash and cash equivalents	$1,479,206	$892,939
Accounts receivable, net of allowance of $15,000	3,610,444	3,192,337
Deferred tax asset, net of allowance	54,180	54,180
Unbilled services	1,099,477	1,015,429
Prepaid expenses and other current assets	391,365	438,674
Total current assets	6,634,672	5,593,559
Property and equipment, net	965,607	805,284
Other assets:	'	'
Intangible assets, net	427,054	569,420
Capitalized software development costs, net	438,848	301,552
Other assets	25,529	26,562
Total other assets	891,431	897,534
Total assets	8,491,710	7,296,377
Liabilities and Stockholders' Equity	'	'
Line of credit	200,000	400,000
Current portion of capital lease obligations	150,720	30,980
Accounts payable	2,360,881	2,501,772
Accrued compensation and benefits	724,319	519,958
Accrued liabilities	248,359	299,771
Deferred revenue	1,595,941	583,520
Total current liabilities	5,280,220	4,336,001
Commitments and contingencies	'	'
Long-term liabilities:	'	'
Capital lease obligations, net of current portion	88,401	7,549
Note payable - related party	750,000	750,000
Total long-term liabilities	838,401	757,549
Total liabilities	6,118,621	5,093,550
Stockholders' equity:	'	'
Preferred stock, $.01 par value, 10,000,000 shares authorized and no shares issued and outstanding	0	0
Common stock, $.01 par value, 35,000,000 shares authorized; 16,268,393 shares issued and outstanding at September 30, 2013 and December 31, 2012	162,683	162,683
Additional paid-in capital	7,137,899	6,968,032
Accumulated deficit	-4,728,696	-4,728,664
Foreign currency adjustment	-198,797	-199,224
Total stockholders' equity	2,373,089	2,202,827
Total liabilities and stockholders' equity	$8,491,710	$7,296,377

CONDENSED_CONSOLIDATED_BALANCE1

CONDENSED CONSOLIDATED BALANCE SHEETS [Parenthetical] (USD $)	Sep. 30, 2013	Dec. 31, 2012
Allowance for accounts receivable (in dollars)	$15,000	$15,000
Preferred stock, par value (in dollars per share)	$0.01	$0.01
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)	$0.01	$0.01
Common stock, shares authorized	35,000,000	35,000,000
Common stock, shares issued	16,268,393	16,268,393
Common stock, shares outstanding	16,268,393	16,268,393

CONDENSED_CONSOLIDATED_STATEME

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Revenues:	'	'	'	'
Translation and consulting	$5,719,811	$5,155,120	$17,377,021	$15,331,619
Operating expenses:	'	'	'	'
Cost of revenues (exclusive of depreciation and amortization)	3,524,757	3,303,260	10,680,944	9,947,087
Sales and marketing	824,369	571,371	2,398,043	1,814,143
Research and development	289,041	182,517	657,825	948,323
General and administrative	990,825	893,267	2,884,351	2,843,486
Loss on subsidiary closure	0	0	0	80,113
Depreciation and amortization	218,006	184,846	646,673	589,081
Total operating expenses	5,846,998	5,135,261	17,267,836	16,222,233
Income (loss) from operations	-127,187	19,859	109,185	-890,614
Other income (expense):	'	'	'	'
Interest expense	-26,612	-23,251	-83,066	-70,356
Other expense, net	-3,345	-5,823	-866	-18,530
Total other (expense), net	-29,957	-29,074	-83,932	-88,886
Income (loss) before income taxes	-157,144	-9,215	25,253	-979,500
Income tax expense	6,011	33,575	25,285	33,575
Net Loss	-163,155	-42,790	-32	-1,013,075
Effect of foreign currency translation adjustments	35,505	18,452	427	30,350
Comprehensive income (loss)	($127,650)	($24,338)	$395	($982,725)
Loss per common share - basic and diluted (in dollars per share)	($0.01)	$0	$0	($0.06)
Weighted average shares outstanding - basic & diluted (in shares)	16,268,393	16,185,804	16,268,393	16,183,600

CONDENSED_CONSOLIDATED_STATEME1

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) (USD $)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Cash flows from operating activities:	'	'
Net loss	($32)	($1,013,075)
Adjustments to reconcile net loss to net cash from operating activities:	'	'
Loss on subsidiary closure	0	80,113
Depreciation and amortization	646,673	589,081
Stock-based compensation expense	169,867	122,404
Decrease (increase) in current assets:	'	'
Accounts receivable	-418,107	357,624
Unbilled services	-84,048	-322,718
Prepaid expenses and other current assets	-105,686	-105,490
Other assets	1,057	-2,276
Increase (decrease) in current liabilities:	'	'
Accounts payable	-140,891	17,253
Accrued liabilities	-51,412	-20,531
Accrued compensation and benefits	204,361	-114,673
Deferred revenue	1,012,421	-220,007
Net cash flows provided by (used in) operating activities	1,234,203	-632,294
Cash flows from investing activities:	'	'
Purchases of property and equipment	-135,528	-339,260
Capitalized software development costs	-242,254	-138,679
Net cash flows used in investing activities	-377,782	-477,939
Cash flows from financing activities:	'	'
Payments on line of credit	-200,000	0
Payments on capital lease obligations	-70,938	-19,099
Net cash flows used in financing activities	-270,938	-19,099
Net increase (decrease) in cash and cash equivalents	585,483	-1,129,332
Effect of exchange rate changes in cash	784	26,785
Cash and cash equivalents - beginning of period	892,939	1,763,249
Cash and cash equivalents - end of period	1,479,206	660,702
Cash paid for taxes	34,697	0
Cash paid for interest, net of amortization of loan fees	68,190	25,315
Non-cash investing and financing transactions:	'	'
Cashless exercise of stock options	0	198
Adjustment to intangible assets and acquisition liability - due to sellers due to finalization of purchase price	0	141,176
Purchase of property and equipment via capital lease obligation	$271,530	$0

Nature_of_Business_and_Summary

Nature of Business and Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2013
Nature Of Business and Summary Of Significant Accounting Policies [Abstract]	'
Basis of Presentation and Significant Accounting Policies [Text Block]	'
	1	Nature of Business and Summary of Significant Accounting Policies
	Nature of Business / Basis of Presentation
	Sajan, Inc. (the “Company” or “Sajan”), a Delaware corporation, provides language translation services and technology solutions to companies located throughout the world, particularly in the technology, consumer products, medical and life sciences, financial services, manufacturing, government, and retail industries that are selling products into global markets.  The Company is located in River Falls, Wisconsin and has active, wholly-owned subsidiaries in the following countries:
	·      Ireland – Sajan Software Ltd.
	·      Spain – Sajan Spain S.L.A.
	·      Singapore – Sajan Singapore Pte. Ltd.
	·      Brazil - Sajan do Brasil Traduções Ltda.
	The Company formerly had a wholly owned subsidiary in India, Sajan India Software Private Limited, which was closed in January 2012 (See Note 8).
	Interim Financial Information
	The condensed consolidated balance sheet as of December 31, 2012, which has been derived from audited consolidated financial statements, and the unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial information. Accordingly, certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with GAAP have been omitted pursuant to such rules and regulations. Operating results for the three and nine months ended September 30, 2013 are not necessarily indicative of the results that may be expected for the year ending December 31, 2013 or any other period. The accompanying consolidated financial statements and related notes should be read in conjunction with the audited consolidated financial statements of the Company, and notes thereto, contained in our Annual Report on Form 10-K for the year ended December 31, 2012 filed with the SEC on March 29, 2013.  The financial information furnished in this report is unaudited and reflects all adjustments which are normal recurring adjustments and, which in the opinion of management, are necessary to fairly present the results of the interim periods presented in order to make the consolidated financial statements not misleading.
	Principles of Consolidation
	The accompanying consolidated financial statements include the accounts of Sajan, Inc. and its wholly-owned subsidiaries.   All significant intercompany accounts and transactions have been eliminated in the consolidated financial statements.
	Cash and Cash Equivalents
	The Company considers all highly liquid investments with an original maturity of three months or less at the date of purchase to be cash equivalents.
	Fair Value of Financial Instruments
	The carrying amounts of the Company’s financial instruments, which include cash equivalents, accounts receivable, accounts payable and other accrued expenses, approximate their fair values due to their short maturities and/or market-consistent interest rates.
	Accounts Receivable
	The Company extends unsecured credit to customers in the normal course of business. The Company provides an allowance for doubtful accounts when appropriate, the amount of which is based upon a review of outstanding receivables, historical collection information, and existing economic conditions on an individual customer basis. Normal accounts receivable are due 30 days after issuance of the invoice. Receivables are written off only after all collection attempts have failed, and are based on individual credit evaluation and specific circumstances of the customer. Accounts receivable have been reduced by an allowance for uncollectible accounts of $15,000 at both September 30, 2013 and December 31, 2012. Management believes all accounts receivable in excess of the allowance are fully collectible. The Company does not accrue interest on accounts receivable.
	Income / Loss Per Common Share
	Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding.
	Diluted earnings (loss) per share is computed based on the weighted average number of common shares outstanding adjusted by the number of additional shares that would have been outstanding had the potentially dilutive common shares been issued.
	For the three months ended September 30, 2013 and 2012, we excluded options to purchase 1,535,675 and 1,138,050 shares, respectively, and warrants to purchase 176,026 shares because the Company had a net loss and inclusion of these shares would have been anti-dilutive. For the nine months ended September 30, 2013 and 2012, we excluded options to purchase 1,535,675 and 1,138,050 shares, respectively, and warrants to purchase 176,026 shares because the Company had a net loss and inclusion of these shares would have been anti-dilutive.
	A reconciliation of the denominator in the basic and diluted income or loss per share is as follows:
			Three months ended September 30,
			2013			2012
	Numerator:
	Net loss		$	-163,155		$	-42,790
	Denominator:
	Weighted average common shares outstanding - basic & diluted			16,268,393			16,185,804
	Loss per common share - basic and diluted		$	-0.01		$	0
			Nine months ended September 30,
			2013			2012
	Numerator:
	Net loss		$	-32		$	-1,013,075
	Denominator:
	Weighted average common shares outstanding – diluted & diluted			16,268,393			16,183,600
	Loss per common share - basic and diluted		$	0		$	-0.06
	Property and Equipment
	Property and equipment are recorded at cost and depreciated over their estimated useful lives, initially determined to be two to seven years, using the straight-line method. Upon retirement or sale, the cost of assets disposed of and the related accumulated depreciation are removed from the accounts, and any resulting gain or loss is included in operating results. Repairs and maintenance costs are expensed as incurred.
	Intangible Assets
	The Company's intangible assets consist of customer lists and patents, are subject to amortization, and consist of the following:
			September 30, 2013			December 31, 2012
	Customer lists acquired		$	771,229		$	771,229
	Patents and licenses			517,883			517,883
	Less accumulated amortization			-862,058			-719,692
	Total intangible assets, net		$	427,054		$	569,420
	Intangible assets are amortized over their expected useful lives of 3 to 15 years.  Amortization of intangible assets was $47,455 and $75,630 for the three months ended September 30, 2013 and 2012, respectively and $142,366 and $235,621 for the nine months ended September 30, 2013 and 2012, respectively.  Estimated amortization expense of intangible assets for the remainder of 2013 and the years ending December 31, 2014, 2015, 2016, 2017, and thereafter is $47,455, $189,821, $170,655, $3,686, $1,595, and $13,842 respectively.  The weighted average remaining life of the intangibles is 3 years.
	Long-lived Assets
	The Company annually reviews its long-lived assets for events or changes that may indicate that the carrying amount of a long-lived asset may not be recoverable or exceeds its fair value.  There was no impairment for the three and nine months ended September 30, 2013 and 2012.
	Capitalized Software Development Costs
	The Company capitalizes software development costs incurred during the application development stage related to new software or major enhancements to the functionality of existing software that is developed solely to meet the Company’s internal operational needs and when no substantive plans exist or are being developed to market the software externally. Costs capitalized include external direct costs of materials and services and internal payroll and payroll-related costs. Any costs during the preliminary project stage or related to training or maintenance is expensed as incurred. Capitalization ceases when the software project is substantially complete and ready for its intended use. The capitalization and ongoing assessment of recoverability of development costs requires considerable judgment by management with respect to certain external factors, including, but not limited to, technological and economic feasibility, and estimated economic life.   During the three and nine months ended September 30, 2013, the Company capitalized approximately $0 and $242,000, respectively, related to software development activities.  The amount capitalized for both the three and nine months ended September 30, 2012 was $139,000.
	Capitalized software development costs consist of the following as of:
			September 30, 2013			December 31, 2012
	Capitalized software development costs		$	3,084,804		$	2,865,655
	Less accumulated amortization			-2,645,956			-2,564,103
	Total capitalized software development costs, net		$	438,848		$	301,552
	When the projects are ready for their intended use, the Company amortizes such costs over their estimated useful lives of three years. Amortization of capitalized software was $43,398 and $17,730 for the three months ended and $104,958 and $104,510 for the nine months ended September 30, 2013 and 2012, respectively.   Estimated amortization expense for capitalized software costs for the remainder of 2013 and the years ending December 31, 2014, 2015, and 2016 is expected to be $45,228, $180,912, $169,356, and $43,352, respectively.
	Stock-Based Compensation
	The Company measures and recognizes compensation expense for all stock-based compensation at fair value. The Company recognizes stock-based compensation costs on a straight-line basis over the requisite service period of the award, which is generally the option vesting term.  For the three and nine months ended September 30, 2013, total stock-based compensation expense was approximately $70,000 and $170,000, respectively.  For the three and nine months ended September 30, 2012, total stock-based compensation was $18,000 and $122,000, respectively.  As of September 30, 2013, there was approximately $716,000 of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the Company’s 2004 Long-Term Incentive Plan. That cost is expected to be recognized over a weighted-average period of three years.
	In determining the compensation cost of the options granted during 2013 and 2012, the fair value of each option grant has been estimated on the date of grant using the Black-Scholes option pricing model, and the weighted average assumptions used in these calculations are summarized as follows:
			Three months ended September 30,						Nine months ended September 30,
			2013			2012			2013			2012
	Risk-free interest rate			1.4	%		0.2	%		1.2	%		0.7	%
Expected life of options granted			7 Yrs			2.8 Yrs			7 Yrs			7 Yrs
Expected volatility range			89	%		76.6	%		88.4	%		68.6	%
Expected dividend yield			-			-			-			-
Using the Black-Scholes option pricing model, management has determined that the options issued in the three months ended September 30, 2013 and 2012 have a weighted-average grant date fair value of $0.99 and $0.36 per share, respectively.  Options issued during the nine months ended September 30, 2013 and 2012 have a weighted-average grant date fair value of $0.86 per share and $0.60 per share, respectively.
Revenue Recognition
The Company derives revenues primarily from language translation services and professional consulting services.
Translation services utilize the Company’s proprietary translation management system – Transplicity – to provide a solution for all of the customer’s language translation requirements. Services include content analysis, translation memory and retrieval, language translation, account management, graphic design services, technical consulting and professional services.  Services associated with translation of content are generally billed on a “per word” basis.  Professional services, including technical consulting and project management, are billed on a per hour rate basis.
In accordance with Financial Accounting Standard Board (“FASB”) and SEC accounting guidance on revenue recognition, the Company considers revenue earned and realizable at the time services are performed and amounts are earned. Sajan considers amounts to be earned when (1) persuasive evidence of an arrangement has been obtained; (2) services are delivered; (3) the fee is fixed or determinable; and (4) collectability is reasonably assured. Determination of criteria (3) and (4) are based on management’s judgments regarding the fixed nature of the fee charged for services rendered and products delivered and the collectability of those fees. The Company recognizes revenue for translations services on a standard “per word” basis at the time the translation is completed. The Company recognizes revenue for professional services when the services have been completed in accordance with the statement of work.
Sajan’s agreements with its customers may provide the customer with a limited time period following delivery of the project for the customer to identify any non-conformities to the pre-defined project specifications.  The Company has the opportunity to correct these items.  Historically, errors in project deliverables have been minimal and accordingly, revenue is recognized as services are performed.
Revenues recognized in excess of billings are recorded as unbilled services. Billings in excess of revenues recognized and deposits from customers are recorded as deferred revenues to the extent cash has been received.  As of September 30, 2013 and December 31, 2012, the Company had unbilled services of $1,099,477 and $1,015,429, respectively, and deferred revenue of $1,595,941 and $583,520, respectively.
Cost of Revenues
Cost of revenues consists primarily of expenses incurred for translation services provided by third parties as well as salaries and associated employee benefits for personnel related to client projects. Cost of revenues excludes depreciation and amortization which is presented separately as a component of operating expenses.
Research and Development
Research and development expenses represent costs incurred for development of routine enhancements to our operating software system and include costs incurred during the preliminary project stage of development or related to training or maintenance activities.  Research and development expenses consist primarily of salaries and related costs of our software engineering organization, fees paid to third party consultants and certain facility expenses.  We expense all research and development expenses as incurred.
Foreign Currency Translation
For operations in local currency environments, assets and liabilities are translated at period-end exchange rates with cumulative translation adjustments included as a component of stockholders’ equity.  Income and expense items are translated at average foreign exchange rates prevailing during the year. For operations in which the U.S. dollar is not considered the functional currency, certain financial statements amounts are re-measured at historical exchange rates, with all other asset and liability amounts translated at period-end exchange rates. These re-measured adjustments are reflected in the results of operations. Gains and losses from foreign currency transactions are included in the Consolidated Statements of Comprehensive Income (Loss).
Income Tax
Current income taxes are recorded based on statutory obligations for the current operating period for the various countries in which the Company has operations.
Deferred taxes are provided on an asset and liability method whereby deferred tax assets are recognized for deductible temporary differences, and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax basis. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.
Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances.  Actual results could differ from those estimates.
Reclassification
For comparability, certain 2012 amounts have been reclassified to conform with classifications adopted in 2013.

Concentrations_of_Credit_Risk

Concentrations of Credit Risk	9 Months Ended
	Sep. 30, 2013
Risks and Uncertainties [Abstract]	'
Concentration Risk Disclosure [Text Block]	'
	2	Concentrations of Credit Risk
	Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents and accounts receivable.
	Cash concentration – The Company places its cash at financial institutions with balances that, at times, may exceed federally insured limits. The Company evaluates the creditworthiness of these financial institutions in determining the risk associated with these deposits. The Company has not experienced any losses on such accounts.
	Accounts receivable concentration – Concentrations of credit risk with respect to trade accounts receivable are limited due to the dispersion of customers across different industries and geographic regions. At September 30, 2013 and December 31, 2012, one customer accounted for approximately 20% and two customers accounted for 24% and 12% of accounts receivable, respectively.
	Sales concentration – For the three months ended September 30, 2013, one customer accounted for 15% of net revenues and two customers accounted for 19% and 15% of net revenues, respectively, for the three months ended September 30, 2012.  For the nine months ended September 30, 2013, one customer accounted for 17% of net revenues and two customers accounted for 18% and 12% of net revenues, respectively, in the same period of 2012.

Segment_Information_and_Major_

Segment Information and Major Customers	9 Months Ended
	Sep. 30, 2013
Segment Information and Major Customers [Abstract]	'
Segment Reporting Disclosure [Text Block]	'
	3	Segment Information and Major Customers
	The Company views its operations and manages its business as one reportable segment, providing language translation solutions to a variety of companies.  The Company markets its products and services through its headquarters in the United States and its wholly-owned subsidiaries operating in Ireland, Spain, Singapore, and Brazil.
	Net sales per geographic region, based on the billing location of the end customer, are summarized below.
			Three months ended September 30,
			2013				2012
			Sales		Percent		Sales		Percent
	United States		$	4,115,738	72	%	$	3,751,619	73	%
	International			1,604,073	28	%		1,403,501	27	%
	Total Sales		$	5,719,811	100	%	$	5,155,120	100	%
			Nine months ended September 30,
			2013				2012
			Sales		Percent		Sales		Percent
	United States		$	11,873,366	68	%	$	10,987,742	72	%
	International			5,503,655	32	%		4,343,877	28	%
	Total Sales		$	17,377,021	100	%	$	15,331,619	100	%
	For the three and nine months ended September 30, 2013, one foreign country accounted for 11% and 10% of the net revenues, respectively, and one foreign country accounted for 12% of net revenues for the same respective periods in 2012.

Related_Party_Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2013
Related Party Transactions [Abstract]	'
Related Party Transactions Disclosure [Text Block]	'
	4	Related Party Transactions
	Note Payable
	Note payable and accrued interest are payable to Shannon and Angela Zimmerman, each of whom is an executive officer and director of the Company, and a beneficial owner of the Company's outstanding voting common stock.  The note was originally issued in February, 2010 and had a one year term.  The note has been amended and extended several times, the most recent being March 21, 2013, and currently has a maturity date of August 23, 2015.  However, no payments of the principal balances are allowed while there are amounts outstanding under the Company’s line of credit with Silicon Valley Bank (See Note 5).
	The note carries an interest rate of 8%.  Amounts outstanding as of September 30, 2013 and December 31, 2012 are as follows:
			September 30, 2013		December 31, 2012
	Principal		$	750,000	$	750,000
	Accrued interest			126,164		111,288
	Total		$	876,164	$	861,288
	Interest expense was approximately $15,000 and $45,000 for each of the three and nine months ended September 30, 2013 and 2012, respectively.
	Lease
	Sajan leases its office space, under three non-cancelable operating leases, from River Valley Business Center, LLC (“RVBC”), a limited liability company that is owned by Shannon and Angela Zimmerman.  The space consists of approximately 20,000 square feet and is leased pursuant to three agreements. These lease agreements require the Company to pay a minimum monthly rental plus certain operating expenses and expire in January 2017. Payment of rent under these leases is secured by goods, chattels, fixtures and personal property of the Company.   Rent expense for the three months ended September 30, 2013 and 2012 was $85,983 for both periods.  Rent expense for the nine months ended September 30, 2013 and 2012 was $257,949 and $248,590, respectively.

Credit_Facility

Credit Facility	9 Months Ended
	Sep. 30, 2013
Debt Disclosure [Abstract]	'
Debt Disclosure [Text Block]	'
	5.	Credit Facility
	In March 2012, we entered into a one year revolving working capital line of credit with Silicon Valley Bank (“SVB”), which permitted borrowings up to a principal amount equal to the lesser of (a) $1,500,000 or (b) 80% of the aggregate amount of our outstanding eligible domestic accounts receivable, subject to customary limitations and exceptions (the “2012 Credit Facility”). As of December 31, 2012, $400,000 had been drawn under the 2012 Credit Facility.
	On March 28, 2013, we entered into a new credit facility by entering into a two year revolving working capital line of credit with SVB, which permits borrowings of up to a principal amount equal to the lesser of (a) $1,500,000 or (b) eighty percent (80%) of the aggregate amount of our outstanding eligible accounts receivable, subject to customary limitations and exceptions (the “2013 Credit Facility”). The 2013 Credit Facility matures on March 28, 2015. The unpaid principal amount borrowed under the 2013 Credit Facility accrues interest at a floating rate per annum equal to (a) 1.0% above the “prime rate” published from time to time in the money rates section of the Wall Street Journal (the “Prime Rate”) when the Liquidity Ratio is greater than or equal to 2.0 to 1.0 and (b) 2.25% above the Prime Rate when the liquidity ratio is less than 2.0 to 1.0.  The interest rate floor is set at 4.0% per annum.    As of September 30, 2013, $200,000 is outstanding under the 2013 Credit Facility, and the principal amount of such borrowings is accruing interest at an interest rate of 4.25%.
	The 2013 Credit Facility is governed by the terms of an Amended and Restated Loan and Security Agreement, dated as of March 28, 2013, entered into by and between us, as borrower, and SVB, as lender (the “A&R Loan Agreement”).  The A&R Loan Agreement contains several financial and customary affirmative and negative covenants.  The Company was in compliance with all covenants of the credit facility as of September 30, 2013.
	The 2013 Credit Facility is secured by all of our domestic assets except for intellectual property (which we agreed not to pledge to others), and the pledge of our equity interests in our foreign subsidiaries that are controlled foreign corporations (as defined in the Internal Revenue Code).  Our obligations under the A&R Loan Agreement are guaranteed on an unsecured basis by certain of our subsidiaries.  The A&R Loan Agreement contains customary events of default, which, if triggered, permit SVB to exercise customary remedies such as acceleration of all then outstanding obligations arising under the A&R Loan Agreement, to terminate its obligations to lend under the 2013 Credit Facility, to apply a default rate of interest to such outstanding obligations, and to exercise customary remedies under the Uniform Commercial Code.

Options_and_Warrants

Options and Warrants	9 Months Ended
	Sep. 30, 2013
Stockholders' Equity Note [Abstract]	'
Stockholders' Equity Note Disclosure [Text Block]	'
	6	Options and Warrants
	Amended and Restated 2004 Long-Term Incentive Plan
	Over the past several years, shareholders have approved various modifications to the Amended and Restated 2004 Long-Term Incentive Plan (the “Plan”) so that as of September 30, 2013,  2,200,000 shares of the Company's common stock were reserved for the issuance of restricted stock and incentive and nonqualified stock options to directors, officers and employees of and advisors to the Company.   Exercise prices are determined by the Board of Directors on the dates of grants.  The Company issues new shares when stock options are exercised.
	On September 30, 2013, 1,535,675 options in the Plan were outstanding with a weighted average exercise price of $1.64 per share.

Income_Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2013
Income Tax Disclosure [Abstract]	'
Income Tax Disclosure [Text Block]	'
	7	Income Taxes
	The Company has cumulative net operating losses available to offset future income for federal and state reporting purposes of approximately $31.2 million and $7.4 million, respectively, as of September 30, 2013.  There are also available research and development credit carryforwards at September 30, 2013 of $0.7 million.  The Company's federal and state net operating loss carryforwards expire in various calendar years from 2015 through 2030 and the tax credit carryforwards expire in calendar years 2020 through 2028.  Accordingly, income tax expense recognized during the three and nine month periods, relate solely to taxes due in foreign jurisdictions where the Company does business. Future utilization of available net operating loss carryforwards may be limited under Section 382 of the Internal Revenue Code of 1986, as amended (the "Code") as a result of significant changes in ownership. These limitations could result in reduction of these net operating loss carryforwards before they are utilized.
	The Company’s policies with respect to the recording of deferred tax assets and liabilities have not changed in 2013.  All balances and valuation allowances as of December 31, 2012 were evaluated and no changes were deemed necessary as of September 30, 2013.

Closure_of_India_Operation

Closure of India Operation	9 Months Ended
	Sep. 30, 2013
Closure Of India Operation Disclosure [Abstract]	'
Closure Of India Operation Disclosure [Text Block]	'
	8	Closure of India Operation
	In January 2012, the Company closed its software development operation in India and transferred those activities to other Sajan locations.  The Company estimated the costs of shutdown to be $80,113 and recorded this amount as an expense in the first quarter of 2012.  The Company expects to file final dissolution documents in the fourth quarter of 2013.  Additionally, in connection with this closure in 2012, the Company recognized the unrealized foreign currency gain of $85,000 that existed at the time of closing the subsidiary.

Legal_Proceedings

Legal Proceedings	9 Months Ended
	Sep. 30, 2013
Commitments and Contingencies Disclosure [Abstract]	'
Legal Matters and Contingencies [Text Block]	'
	9	Legal Proceedings
	The Company expenses legal costs as incurred.  In the ordinary course of business, the Company is subject to legal actions, proceedings and claims. As of the date of this report management is not aware of any undisclosed actual or threatened litigation that would have a material adverse effect on the Company’s financial condition or results of operations.

Nature_of_Business_and_Summary1

Nature of Business and Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2013

Nature Of Business and Summary Of Significant Accounting Policies [Abstract]

'

Basis of Accounting, Policy [Policy Text Block]

'

Nature of Business / Basis of Presentation

Sajan, Inc. (the “Company” or “Sajan”), a Delaware corporation, provides language translation services and technology solutions to companies located throughout the world, particularly in the technology, consumer products, medical and life sciences, financial services, manufacturing, government, and retail industries that are selling products into global markets.  The Company is located in River Falls, Wisconsin and has active, wholly-owned subsidiaries in the following countries:

⋅      Ireland – Sajan Software Ltd.

⋅      Spain – Sajan Spain S.L.A.

⋅      Singapore – Sajan Singapore Pte. Ltd.

⋅      Brazil - Sajan do Brasil Traduções Ltda.

The Company formerly had a wholly owned subsidiary in India, Sajan India Software Private Limited, which was closed in January 2012 (See Note 8).

Interim Financial Information Policy [Policy Text Block]

'

Interim Financial Information

The condensed consolidated balance sheet as of December 31, 2012, which has been derived from audited consolidated financial statements, and the unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial information. Accordingly, certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with GAAP have been omitted pursuant to such rules and regulations. Operating results for the three and nine months ended September 30, 2013 are not necessarily indicative of the results that may be expected for the year ending December 31, 2013 or any other period. The accompanying consolidated financial statements and related notes should be read in conjunction with the audited consolidated financial statements of the Company, and notes thereto, contained in our Annual Report on Form 10-K for the year ended December 31, 2012 filed with the SEC on March 29, 2013.  The financial information furnished in this report is unaudited and reflects all adjustments which are normal recurring adjustments and, which in the opinion of management, are necessary to fairly present the results of the interim periods presented in order to make the consolidated financial statements not misleading.

Consolidation, Policy [Policy Text Block]

'

Principles of Consolidation

The accompanying consolidated financial statements include the accounts of Sajan, Inc. and its wholly-owned subsidiaries.   All significant intercompany accounts and transactions have been eliminated in the consolidated financial statements.

Cash and Cash Equivalents, Policy [Policy Text Block]

'

Cash and Cash Equivalents

The Company considers all highly liquid investments with an original maturity of three months or less at the date of purchase to be cash equivalents.

Fair Value of Financial Instruments, Policy [Policy Text Block]

'

Fair Value of Financial Instruments

The carrying amounts of the Company’s financial instruments, which include cash equivalents, accounts receivable, accounts payable and other accrued expenses, approximate their fair values due to their short maturities and/or market-consistent interest rates.

Receivables, Policy [Policy Text Block]

'

Accounts Receivable

The Company extends unsecured credit to customers in the normal course of business. The Company provides an allowance for doubtful accounts when appropriate, the amount of which is based upon a review of outstanding receivables, historical collection information, and existing economic conditions on an individual customer basis. Normal accounts receivable are due 30 days after issuance of the invoice. Receivables are written off only after all collection attempts have failed, and are based on individual credit evaluation and specific circumstances of the customer. Accounts receivable have been reduced by an allowance for uncollectible accounts of $15,000 at both September 30, 2013 and December 31. 2012. Management believes all accounts receivable in excess of the allowance are fully collectible. The Company does not accrue interest on accounts receivable.

Earnings Per Share, Policy [Policy Text Block]

'

Income / Loss Per Common Share

Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding.

Diluted earnings (loss) per share is computed based on the weighted average number of common shares outstanding adjusted by the number of additional shares that would have been outstanding had the potentially dilutive common shares been issued.

For the three months ended September 30, 2013 and 2012, we excluded options to purchase 1,535,675 and 1,138,050 shares, respectively, and warrants to purchase 176,026 shares because the Company had a net loss and inclusion of these shares would have been anti-dilutive. For the nine months ended September 30, 2013 and 2012, we excluded options to purchase 1,535,675 and 1,138,050 shares, respectively, and warrants to purchase 176,026 shares because the Company had a net loss and inclusion of these shares would have been anti-dilutive.

A reconciliation of the denominator in the basic and diluted income or loss per share is as follows:

Three months ended September 30,

2013

2012

Numerator:

Net loss

$

-163,155

$

-42,790

Denominator:

Weighted average common shares outstanding - basic & diluted

16,268,393

16,185,804

Loss per common share - basic and diluted

$

-0.01

$

0

Nine months ended September 30,

2013

2012

Numerator:

Net loss

$

-32

$

-1,013,075

Denominator:

Weighted average common shares outstanding – diluted & diluted

16,268,393

16,183,600

Loss per common share - basic and diluted

$

0

$

-0.06

Property, Plant and Equipment, Policy [Policy Text Block]

'

Property and Equipment

Property and equipment are recorded at cost and depreciated over their estimated useful lives, initially determined to be two to seven years, using the straight-line method. Upon retirement or sale, the cost of assets disposed of and the related accumulated depreciation are removed from the accounts, and any resulting gain or loss is included in operating results. Repairs and maintenance costs are expensed as incurred.

Goodwill and Intangible Assets, Intangible Assets, Policy [Policy Text Block]

'

Intangible Assets

The Company's intangible assets consist of customer lists and patents, are subject to amortization, and consist of the following:

September 30, 2013

December 31, 2012

Customer lists acquired

$

771,229

$

771,229

Patents and licenses

517,883

517,883

Less accumulated amortization

-862,058

-719,692

Total intangible assets, net

$

427,054

$

569,420

Intangible assets are amortized over their expected useful lives of 3 to 15 years.  Amortization of intangible assets was $47,455 and $75,630 for the three months ended September 30, 2013 and 2012, respectively and $142,366 and $235,621 for the nine months ended September 30, 2013 and 2012, respectively.  Estimated amortization expense of intangible assets for the remainder of 2013 and the years ending December 31, 2014, 2015, 2016, 2017, and thereafter is $47,455, $189,821, $170,655, $3,686, $1,595, and $13,842 respectively.  The weighted average remaining life of the intangibles is 3 years.

Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block]

'

Long-lived Assets

The Company annually reviews its long-lived assets for events or changes that may indicate that the carrying amount of a long-lived asset may not be recoverable or exceeds its fair value.  There was no impairment for the three and nine months ended September 30, 2013 and 2012.

Research, Development, and Computer Software, Policy [Policy Text Block]

'

Capitalized Software Development Costs

The Company capitalizes software development costs incurred during the application development stage related to new software or major enhancements to the functionality of existing software that is developed solely to meet the Company’s internal operational needs and when no substantive plans exist or are being developed to market the software externally. Costs capitalized include external direct costs of materials and services and internal payroll and payroll-related costs. Any costs during the preliminary project stage or related to training or maintenance is expensed as incurred. Capitalization ceases when the software project is substantially complete and ready for its intended use. The capitalization and ongoing assessment of recoverability of development costs requires considerable judgment by management with respect to certain external factors, including, but not limited to, technological and economic feasibility, and estimated economic life.   During the three and nine months ended September 30, 2013, the Company capitalized approximately $0 and $242,000, respectively, related to software development activities.  The amount capitalized for both the three and nine months ended September 30, 2012 was $139,000.

Capitalized software development costs consist of the following as of:

September 30, 2013

December 31, 2012

Capitalized software development costs

$

3,084,804

$

2,865,655

Less accumulated amortization

-2,645,956

-2,564,103

Total capitalized software development costs, net

$

438,848

$

301,552

When the projects are ready for their intended use, the Company amortizes such costs over their estimated useful lives of three years. Amortization of capitalized software was $43,398 and $17,730 for the three months ended and $104,958 and $104,510 for the nine months ended September 30, 2013 and 2012, respectively.   Estimated amortization expense for capitalized software costs for the remainder of 2013 and the years ending December 31, 2014, 2015, and 2016 is expected to be $45,228, $180,912, $169,356, and $43,352, respectively.

Compensation Related Costs, Policy [Policy Text Block]

'

Stock-Based Compensation

The Company measures and recognizes compensation expense for all stock-based compensation at fair value. The Company recognizes stock-based compensation costs on a straight-line basis over the requisite service period of the award, which is generally the option vesting term.  For the three and nine months ended September 30, 2013, total stock-based compensation expense was approximately $70,000 and $170,000, respectively.  For the three and nine months ended September 30, 2012, total stock-based compensation was $18,000 and $122,000, respectively.  As of September 30, 2013, there was approximately $716,000 of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the Company’s 2004 Long-Term Incentive Plan. That cost is expected to be recognized over a weighted-average period of three years.

In determining the compensation cost of the options granted during 2013 and 2012, the fair value of each option grant has been estimated on the date of grant using the Black-Scholes option pricing model, and the weighted average assumptions used in these calculations are summarized as follows:

Three months ended September 30,

Nine months ended September 30,

2013

2012

2013

2012

Risk-free interest rate

1.4

%

0.2

%

1.2

%

0.7

%

Expected life of options granted

7 Yrs

2.8 Yrs

7 Yrs

7 Yrs

Expected volatility range

89

%

76.6

%

88.4

%

68.6

%

Expected dividend yield

-

-

-

-

Using the Black-Scholes option pricing model, management has determined that the options issued in the three months ended September 30, 2013 and 2012 have a weighted-average grant date fair value of $0.99 and $0.36 per share, respectively.  Options issued during the nine months ended September 30, 2013 and 2012 have a weighted-average grant date fair value of $0.86 per share and $0.60 per share, respectively.

Revenue Recognition, Policy [Policy Text Block]

'

Revenue Recognition

The Company derives revenues primarily from language translation services and professional consulting services.

Translation services utilize the Company’s proprietary translation management system – Transplicity – to provide a solution for all of the customer’s language translation requirements. Services include content analysis, translation memory and retrieval, language translation, account management, graphic design services, technical consulting and professional services.  Services associated with translation of content are generally billed on a “per word” basis.  Professional services, including technical consulting and project management, are billed on a per hour rate basis.

In accordance with Financial Accounting Standard Board (“FASB”) and SEC accounting guidance on revenue recognition, the Company considers revenue earned and realizable at the time services are performed and amounts are earned. Sajan considers amounts to be earned when (1) persuasive evidence of an arrangement has been obtained; (2) services are delivered; (3) the fee is fixed or determinable; and (4) collectability is reasonably assured. Determination of criteria (3) and (4) are based on management’s judgments regarding the fixed nature of the fee charged for services rendered and products delivered and the collectability of those fees. The Company recognizes revenue for translations services on a standard “per word” basis at the time the translation is completed. The Company recognizes revenue for professional services when the services have been completed in accordance with the statement of work.

Sajan’s agreements with its customers may provide the customer with a limited time period following delivery of the project for the customer to identify any non-conformities to the pre-defined project specifications.  The Company has the opportunity to correct these items.  Historically, errors in project deliverables have been minimal and accordingly, revenue is recognized as services are performed.

Revenues recognized in excess of billings are recorded as unbilled services. Billings in excess of revenues recognized and deposits from customers are recorded as deferred revenues to the extent cash has been received.  As of September 30, 2013 and December 31, 2012, the Company had unbilled services of $1,099,477 and $1,015,429, respectively, and deferred revenue of $1,595,941 and $583,520, respectively.

Cost of Sales, Policy [Policy Text Block]

'

Cost of Revenues

Cost of revenues consists primarily of expenses incurred for translation services provided by third parties as well as salaries and associated employee benefits for personnel related to client projects. Cost of revenues excludes depreciation and amortization which is presented separately as a component of operating expenses.

Research and Development, Policy [Policy Text Block]

'

Research and Development

Research and development expenses represent costs incurred for development of routine enhancements to our operating software system and include costs incurred during the preliminary project stage of development or related to training or maintenance activities.  Research and development expenses consist primarily of salaries and related costs of our software engineering organization, fees paid to third party consultants and certain facility expenses.  We expense all research and development expenses as incurred.

Foreign Currency Transactions and Translations Policy [Policy Text Block]

'

Foreign Currency Translation

For operations in local currency environments, assets and liabilities are translated at period-end exchange rates with cumulative translation adjustments included as a component of stockholders’ equity.  Income and expense items are translated at average foreign exchange rates prevailing during the year. For operations in which the U.S. dollar is not considered the functional currency, certain financial statements amounts are re-measured at historical exchange rates, with all other asset and liability amounts translated at period-end exchange rates. These re-measured adjustments are reflected in the results of operations. Gains and losses from foreign currency transactions are included in the Consolidated Statements of Comprehensive Income (Loss).

Income Tax, Policy [Policy Text Block]

'

Income Tax

Current income taxes are recorded based on statutory obligations for the current operating period for the various countries in which the Company has operations.

Deferred taxes are provided on an asset and liability method whereby deferred tax assets are recognized for deductible temporary differences, and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax basis. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

Use of Estimates, Policy [Policy Text Block]

'

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances.  Actual results could differ from those estimates.

Reclassification, Policy [Policy Text Block]

'

Reclassification

For comparability, certain 2012 amounts have been reclassified to conform with classifications adopted in 2013.

Nature_of_Business_and_Summary2

Nature of Business and Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2013
Nature Of Business and Summary Of Significant Accounting Policies [Abstract]	'
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	'
	A reconciliation of the denominator in the basic and diluted income or loss per share is as follows:
		Three months ended September 30,
		2013			2012
	Numerator:
	Net loss	$	-163,155		$	-42,790
	Denominator:
	Weighted average common shares outstanding - basic & diluted		16,268,393			16,185,804
	Loss per common share - basic and diluted	$	-0.01		$	0
		Nine months ended September 30,
		2013			2012
	Numerator:
	Net loss	$	-32		$	-1,013,075
	Denominator:
	Weighted average common shares outstanding – diluted & diluted		16,268,393			16,183,600
	Loss per common share - basic and diluted	$	0		$	-0.06
Schedule of Intangible Assets and Goodwill [Table Text Block]	'
	The Company's intangible assets consist of customer lists and patents, are subject to amortization, and consist of the following:
		September 30, 2013			December 31. 2012
	Customer lists acquired	$	771,229		$	771,229
	Patents and licenses		517,883			517,883
	Less accumulated amortization		-862,058			-719,692
	Total intangible assets, net	$	427,054		$	569,420
Schedule Of Capitalized Software Development Costs [Table Text Block]	'
	Capitalized software development costs consist of the following as of:
		September 30, 2013			December 31, 2012
	Capitalized software development costs	$	3,084,804		$	2,865,655
	Less accumulated amortization		-2,645,956			-2,564,103
	Total capitalized software development costs, net	$	438,848		$	301,552
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value [Table Text Block]	'
	In determining the compensation cost of the options granted during 2013 and 2012, the fair value of each option grant has been estimated on the date of grant using the Black-Scholes option pricing model, and the weighted average assumptions used in these calculations are summarized as follows:
		Three months ended September 30,						Nine months ended September 30,
		2013			2012			2013			2012
	Risk-free interest rate		1.4	%		0.2	%		1.2	%		0.7	%
	Expected life of options granted		7 Yrs			2.8 Yrs			7 Yrs			7 Yrs
	Expected volatility range		89	%		76.6	%		88.4	%		68.6	%
	Expected dividend yield		-			-			-			-

Segment_Information_and_Major_1

Segment Information and Major Customers (Tables)	9 Months Ended
	Sep. 30, 2013
Segment Reporting Information, Revenue For Reportable Segment [Abstract]	'
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block]	'
	Net sales per geographic region, based on the billing location of the end customer, are summarized below.
		Three months ended September 30,
		2013				2012
		Sales		Percent		Sales		Percent
	United States	$	4,115,738	72	%	$	3,751,619	73	%
	International		1,604,073	28	%		1,403,501	27	%
	Total Sales	$	5,719,811	100	%	$	5,155,120	100	%
		Nine months ended September 30,
		2013				2012
		Sales		Percent		Sales		Percent
	United States	$	11,873,366	68	%	$	10,987,742	72	%
	International		5,503,655	32	%		4,343,877	28	%
	Total Sales	$	17,377,021	100	%	$	15,331,619	100	%

Related_Party_Transactions_Tab

Related Party Transactions (Tables)	9 Months Ended
	Sep. 30, 2013
Related Party Transactions [Abstract]	'
Schedule of Related Party Transactions [Table Text Block]	'
	Amounts outstanding as of September 30, 2013 and December 31, 2012 are as follows:
		September 30, 2013		December 31, 2012
	Principal	$	750,000	$	750,000
	Accrued interest		126,164		111,288
	Total	$	876,164	$	861,288

Nature_of_Business_and_Summary3

Nature of Business and Summary of Significant Accounting Policies (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Numerator:	'	'	'	'
Net loss	($163,155)	($42,790)	($32)	($1,013,075)
Denominator:	'	'	'	'
Weighted average common shares outstanding - basic & diluted (in shares)	16,268,393	16,185,804	16,268,393	16,183,600
Loss per common share - basic and diluted (in dollars per share)	($0.01)	$0	$0	($0.06)

Nature_of_Business_and_Summary4

Nature of Business and Summary of Significant Accounting Policies (Details 1) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Customer lists acquired	$771,229	$771,229
Patents and licenses	517,883	517,883
Less accumulated amortization	-862,058	-719,692
Total intangible assets, net	$427,054	$569,420

Nature_of_Business_and_Summary5

Nature of Business and Summary of Significant Accounting Policies (Details 2) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Capitalized software development costs	$3,084,804	$2,865,655
Less accumulated amortization	-2,645,956	-2,564,103
Total capitalized software development costs, net	$438,848	$301,552

Nature_of_Business_and_Summary6

Nature of Business and Summary of Significant Accounting Policies (Details 3)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Risk-free interest rate	1.40%	0.20%	1.20%	0.70%
Expected life of options granted	'7 years	'2 years 9 months 18 days	'7 years	'7 years
Expected volatility range	89.00%	76.60%	88.40%	68.60%
Expected dividend yield	0.00%	0.00%	0.00%	0.00%

Nature_of_Business_and_Summary7

Nature of Business and Summary of Significant Accounting Policies (Details Textual) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Time Sharing Transactions, Allowance for Uncollectible Accounts	$15,000	'	$15,000	'	$15,000
Capitalized Computer Software, Amortization	43,398	17,730	104,958	104,510	'
Software Development Capitalized	0	139,000	242,000	139,000	'
Allocated Share-based Compensation Expense	70,000	18,000	170,000	122,000	'
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value	716,000	'	716,000	'	'
Unbilled services	1,099,477	'	1,099,477	'	1,015,429
Amortization of intangible assets	47,455	75,630	142,366	235,621	'
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months	47,455	'	47,455	'	'
Finite-Lived Intangible Assets, Amortization Expense, Year Two	189,821	'	189,821	'	'
Finite-Lived Intangible Assets, Amortization Expense, Year Three	170,655	'	170,655	'	'
Finite-Lived Intangible Assets, Amortization Expense, Year Four	3,686	'	3,686	'	'
Finite-Lived Intangible Assets, Amortization Expense, Year Five	1,595	'	1,595	'	'
Finite-Lived Intangible Assets, Amortization Expense, after Year Five	13,842	'	13,842	'	'
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	'	'	'3 years	'	'
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value	$0.99	$0.36	$0.86	$0.60	'
Deferred Revenue, Current	1,595,941	'	1,595,941	'	583,520
Estimated Term	'	'	'3 years	'	'
Employee Stock Option [Member]	'	'	'	'	'
Awards excluded from diluted income (loss) per share	1,535,675	1,138,050	1,535,675	1,138,050	'
Minimum [Member]	'	'	'	'	'
Finite-Lived Intangible Asset, Useful Life	'	'	'3 years	'	'
Property, Plant and Equipment, Useful Life	'	'	'2 years	'	'
Maximum [Member]	'	'	'	'	'
Finite-Lived Intangible Asset, Useful Life	'	'	'15 years	'	'
Property, Plant and Equipment, Useful Life	'	'	'7 years	'	'
Warrant [Member]	'	'	'	'	'
Awards excluded from diluted income (loss) per share	176,026	176,026	176,026	176,026	'
Scenario, Forecast [Member]	'	'	'	'	'
Capitalized Computer Software Estimated Future Amortization	'	'	45,228	'	'
Capitalized Computer Software Estimated Future Amortization Two	'	'	180,912	'	'
Capitalized Computer Software Estimated Future Amortization Three	'	'	169,356	'	'
Capitalized Computer Software Estimated Future Amortization Four	'	'	$43,352	'	'

Concentrations_of_Credit_Risk_

Concentrations of Credit Risk (Details Textual)	3 Months Ended	9 Months Ended	3 Months Ended	9 Months Ended	3 Months Ended	9 Months Ended		12 Months Ended
	Sep. 30, 2013	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2012	Sep. 30, 2012	Sep. 30, 2012	Sep. 30, 2013	Dec. 31, 2012	Dec. 31, 2012
	Sales [Member]	Sales [Member]	Sales [Member]	Sales [Member]	Sales [Member]	Sales [Member]	Accounts Receivable [Member]	Accounts Receivable [Member]	Accounts Receivable [Member]
	Customer One [Member]	Customer One [Member]	Customer Two [Member]	Customer Two [Member]	Customer Three [Member]	Customer Three [Member]	Customer One [Member]	Customer Two [Member]	Customer Three [Member]
Concentration Risk, Percentage	15.00%	17.00%	19.00%	18.00%	15.00%	12.00%	20.00%	24.00%	12.00%

Segment_Information_and_Major_2

Segment Information and Major Customers (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Total Sales	$5,719,811	$5,155,120	$17,377,021	$15,331,619
Sales Percentage	100.00%	100.00%	100.00%	100.00%
United States [Member]	'	'	'	'
Net sales in United States	4,115,738	3,751,619	11,873,366	10,987,742
Sales Percentage	72.00%	73.00%	68.00%	72.00%
International [Member]	'	'	'	'
Net sales in International	$1,604,073	$1,403,501	$5,503,655	$4,343,877
Sales Percentage	28.00%	27.00%	32.00%	28.00%

Segment_Information_and_Major_3

Segment Information and Major Customers (Details Textual) (Customer Three [Member])	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Customer Three [Member]	'	'	'	'
Foreign Country Accounted Percentage	11.00%	12.00%	10.00%	12.00%

Related_Party_Transactions_Det

Related Party Transactions (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Principal	$750,000	$750,000
Accrued interest	126,164	111,288
Total	$876,164	$861,288

Related_Party_Transactions_Det1

Related Party Transactions (Details Textual) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
	acre		acre
Debt Instrument, Maturity Date	'	'	21-Mar-13	'
Notes Payable Maturity Extension Date One	'	'	23-Aug-15	'
Interest Expense, Related Party	$15,000	$45,000	$15,000	$45,000
Lease Expiration Date	'	'	31-Jan-17	'
Land Subject to Ground Leases	20,000	'	20,000	'
Operating Leases, Rent Expense, Net	$85,983	$85,983	$257,949	$248,590
Related Party Transaction, Rate	'	'	8.00%	'

Credit_Facility_Details_Textua

Credit Facility (Details Textual) (USD $)	9 Months Ended		9 Months Ended	12 Months Ended	9 Months Ended
	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2013	Mar. 28, 2013
			Credit Facility 2012 [Member]	Credit Facility 2012 [Member]	Credit Facility 2013 [Member]	Credit Facility 2013 [Member]
Line of Credit Facility, Maximum Borrowing Capacity	'	'	'	$1,500,000	'	$1,500,000
Line Of Credit Maximum Borrowing Capacity Percentage	'	'	'	80.00%	80.00%	'
Line of Credit Facility, Expiration Date	'	'	28-Mar-13	'	28-Mar-15	'
Line of credit	$200,000	$400,000	'	$400,000	$200,000	'
Line of Credit Facility, Interest Rate During Period	'	'	'	'	4.25%	'
Minimum Net Worth Required Description	'The unpaid principal amount borrowed under the 2013 Credit Facility accrues interest at a floating rate per annum equal to (a) 1.0% above the prime rate published from time to time in the money rates section of the Wall Street Journal (the Prime Rate) when the Liquidity Ratio is greater than or equal to 2.0 to 1.0 and (b) 2.25% above the Prime Rate when the liquidity ratio is less than 2.0 to 1.0. The interest rate floor is set at 4.0% per annum.	'	'	'	'	'

Options_and_Warrants_Details_T

Options and Warrants (Details Textual) (USD $)	9 Months Ended
	Sep. 30, 2013
Stock Issued During Period, Shares, Share-based Compensation, Gross	2,200,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	1,535,675
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price	$1.64

Income_Taxes_Details_Textual

Income Taxes (Details Textual) (USD $)	9 Months Ended
In Millions, unless otherwise specified	Sep. 30, 2013
Deferred Tax Assets, Operating Loss Carryforwards, Foreign	31.2
Deferred Tax Assets, Operating Loss Carryforwards, State and Local	7.4
Deferred Tax Assets, Tax Credit Carryforwards, Research	0.7
Minimum [Member]	'
Operating Loss Carryforwards, Expiration Date	31-Dec-15
Tax Credit Carryforward, Expiration Date	31-Dec-20
Maximum [Member]	'
Operating Loss Carryforwards, Expiration Date	31-Dec-30
Tax Credit Carryforward, Expiration Date	31-Dec-28

Closure_of_India_Operation_Det

Closure of India Operation (Details Textual) (USD $)	3 Months Ended	9 Months Ended		12 Months Ended
	Mar. 31, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Gain (Loss) on Disposition of Stock in Subsidiary	$80,113	$0	($80,113)	'
Foreign Currency Transaction Gain (Loss), Unrealized	'	'	'	$85,000