Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 23, 2018 | Jun. 30, 2017 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | SilverSun Technologies, Inc. | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Common Stock, Shares Outstanding | 4,495,728 | ||
Entity Public Float | $ 5,476,587 | ||
Amendment Flag | false | ||
Entity Central Index Key | 1,236,275 | ||
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, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash | $ 2,235,347 | $ 1,621,049 |
Accounts receivable, net of allowance of $375,000 | 2,336,481 | 2,501,621 |
Unbilled services | 428,208 | 463,563 |
Prepaid expenses and other current assets | 403,911 | 331,094 |
Total current assets | 5,403,947 | 4,917,327 |
Property and equipment, net | 567,532 | 466,202 |
Intangible assets, net | 2,640,457 | 2,431,111 |
Goodwill | 401,000 | 401,000 |
Deferred tax assets | 1,363,000 | 2,414,902 |
Deposits and other assets | 36,312 | 28,887 |
Total assets | 10,412,248 | 10,659,429 |
Current liabilities: | ||
Bank line of credit | 0 | 0 |
Accounts payable | 2,094,297 | 1,822,071 |
Accrued expenses | 1,071,515 | 823,591 |
Accrued interest | 16,283 | 15,533 |
Income taxes payable | 97,097 | 177,466 |
Contingent consideration – current portion | 63,380 | 180,029 |
Long term debt – current portion | 257,846 | 306,677 |
Capital lease obligations – current portion | 94,443 | 94,714 |
Deferred revenue | 2,150,771 | 1,690,147 |
Total current liabilities | 5,845,632 | 5,110,228 |
Contingent consideration net of current portion | 42,255 | 31,685 |
Long term debt net of current portion | 228,626 | 486,473 |
Capital lease obligations net of current portion | 68,614 | 60,127 |
Total liabilities | 6,185,127 | 5,688,513 |
Commitments and Contingencies | ||
Stockholders’ equity: | ||
Preferred stock, value | 0 | 0 |
Common stock, value | 46 | 46 |
Additional paid-in capital | 11,919,316 | 12,176,642 |
Accumulated deficit | (7,692,242) | (7,205,773) |
Total stockholders’ equity | 4,227,121 | 4,970,916 |
Total liabilities and stockholders’ equity | 10,412,248 | 10,659,429 |
Series A Preferred Stock [Member] | ||
Stockholders’ equity: | ||
Preferred stock, value | 0 | 0 |
Series B Preferred Stock [Member] | ||
Stockholders’ equity: | ||
Preferred stock, value | $ 1 | $ 1 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts receivable, allowance (in Dollars) | $ 375,000 | $ 375,000 |
Preferred stock, authorized | 1,000,000 | 1,000,000 |
Preferred stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Par value (in Dollars per share) | $ 0.00001 | $ 0.00001 |
Authorized | 75,000,000 | 75,000,000 |
Issued | 4,489,903 | 4,477,403 |
Outstanding | 4,489,903 | 4,477,403 |
Series A Preferred Stock [Member] | ||
Preferred stock, authorized | 2 | 2 |
Preferred stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, issued | 0 | 0 |
Preferred stock, outstanding | 0 | 0 |
Series B Preferred Stock [Member] | ||
Preferred stock, authorized | 1 | 1 |
Preferred stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, issued | 1 | 1 |
Preferred stock, outstanding | 1 | 1 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues: | ||
Software product, net | $ 5,275,266 | $ 4,707,546 |
Service, net | 29,576,762 | 29,414,424 |
Total revenues, net | 34,852,028 | 34,121,970 |
Cost of revenues: | ||
Product | 2,599,876 | 2,485,141 |
Service | 18,386,712 | 18,909,587 |
Total cost of revenues | 20,986,588 | 21,394,728 |
Gross profit | 13,865,440 | 12,727,242 |
Operating expenses: | ||
Selling and marketing expenses | 4,849,996 | 4,358,234 |
General and administrative expenses | 7,354,201 | 6,374,210 |
Share-based compensation | 101,688 | 42,795 |
Depreciation and amortization | 620,297 | 684,660 |
Total operating expenses | 12,926,182 | 11,459,899 |
Income from operations | 939,258 | 1,267,343 |
Other (expense) income: | ||
Interest expense, net | (31,696) | (64,678) |
Other income | 0 | 10,000 |
Total other (expense) income | (31,696) | (54,678) |
Income before income taxes | 907,562 | 1,212,665 |
Income tax (provision) benefit | (1,394,031) | 2,223,734 |
Net (loss) income | $ (486,469) | $ 3,436,399 |
Basic and diluted net (loss) income per common share | ||
Basic (in Dollars per share) | $ (0.11) | $ 0.78 |
Diluted (in Dollars per share) | $ (0.11) | $ 0.77 |
Weighted average shares outstanding: | ||
Basic (in Shares) | 4,489,013 | 4,414,743 |
Diluted (in Shares) | 4,489,013 | 4,473,403 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) | Preferred Stock [Member]Series A Preferred Stock [Member] | Preferred Stock [Member]Series B Preferred Stock [Member] | Common Stock [Member]Common Class A [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Balance at Dec. 31, 2015 | $ 0 | $ 0 | $ 45 | $ 12,198,448 | $ (10,642,172) | $ 1,556,321 |
Balance (in Shares) at Dec. 31, 2015 | 0 | 0 | 4,410,736 | |||
Convertible note conversion into common stock | $ 1 | 199,999 | 200,000 | |||
Convertible note conversion into common stock (in Shares) | 66,667 | |||||
Issuance of stock, net of fees | $ 1 | 99 | 100 | |||
Issuance of stock, net of fees (in Shares) | 1 | |||||
Cash dividend | (264,699) | (264,699) | ||||
Share-Based Compensation | 42,795 | 42,795 | ||||
Net income (loss) | 3,436,399 | 3,436,399 | ||||
Balance at Dec. 31, 2016 | $ 1 | $ 46 | 12,176,642 | (7,205,773) | 4,970,916 | |
Balance (in Shares) at Dec. 31, 2016 | 1 | 4,477,403 | ||||
Stock warrants in exchange for services | 19,923 | 19,923 | ||||
Issuance of common stock for services | 47,500 | 47,500 | ||||
Issuance of common stock for services (in Shares) | 12,500 | |||||
Cash dividend | (359,014) | (359,014) | ||||
Share-Based Compensation | 34,265 | 34,265 | ||||
Net income (loss) | (486,469) | (486,469) | ||||
Balance at Dec. 31, 2017 | $ 1 | $ 46 | $ 11,919,316 | $ (7,692,242) | $ 4,227,121 | |
Balance (in Shares) at Dec. 31, 2017 | 1 | 4,489,903 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | ||
Net (loss) income | $ (486,469) | $ 3,436,399 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Deferred income taxes | 1,051,902 | (2,214,902) |
Depreciation and amortization | 255,362 | 232,316 |
Amortization of intangibles | 364,934 | 452,344 |
Bad debt write-off | 44,147 | 0 |
Share-based compensation | 34,265 | 42,795 |
Common stock issued in exchange for services | 47,500 | 0 |
Stock warrants in exchange for services | 19,923 | 0 |
Changes in certain assets and liabilities: | ||
Accounts receivable | 120,993 | (24,320) |
Unbilled services | 35,355 | 277,980 |
Prepaid expenses and other current assets | (72,817) | 112,525 |
Deposits and other assets | (7,425) | 1,002 |
Accounts payable | 272,226 | 227,970 |
Accrued expenses | 247,924 | 2,005 |
Income tax payable | (80,369) | (72,818) |
Accrued interest | 750 | 716 |
Deferred revenues | 460,624 | (679,852) |
Net cash provided by operating activities | 2,308,825 | 1,794,160 |
Cash flows from investing activities: | ||
Software development costs | (514,280) | (311,917) |
Acquisition of customer list | (60,000) | |
Purchases of property and equipment | (241,230) | (184,802) |
Net cash used in investing activities | (815,510) | (496,719) |
Cash flows from financing activities: | ||
Payment of cash dividend | (359,014) | (264,699) |
Proceeds from issuance of preferred stock | 0 | 100 |
Repayment of contingent consideration | (106,079) | (188,933) |
Repayments of long term debt | (306,678) | (300,033) |
Principal payment under capital lease obligations | (107,246) | (116,140) |
Net cash used in financing activities | (879,017) | (869,705) |
Net increase in cash | 614,298 | 427,736 |
Cash, beginning of year | 1,621,049 | 1,193,313 |
Cash, end of year | 2,235,347 | 1,621,049 |
During the year, cash was paid for the following: | ||
Income taxes | 335,398 | 100,885 |
Interest | $ 30,946 | $ 64,462 |
SUPPLEMENTAL SCHEDULE OF NON-CA
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | 12 Months Ended |
Dec. 31, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |
Cash Flow, Supplemental Disclosures [Text Block] | SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: For the Year Ended December 31, 2017: The Company incurred approximately $115,462 in capital lease obligations. For the Year Ended December 31, 2016: The Company incurred approximately $88,369 in capital lease obligations. On December 9, 2016 the $200,000 Oates Convertible Note was converted into 66,667 shares of Common Stock. |
NOTE 1 - DESCRIPTION OF BUSINES
NOTE 1 - DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Text Block [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | NOTE 1 – DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION SilverSun Technologies, Inc. (the “Company”) and wholly owned subsidiary SWK Technologies, Inc. (“SWK”) is a value added reseller and master developer for Sage Software’s Sage100/500 and ERP X3 financial and accounting software as well as the publisher of proprietary software solutions, including its own proprietary Electronic Data Interchange (EDI) software, “MAPADOC.” The Company is also a managed network service provider, providing remote network monitoring services, business continuity, disaster recovery, data backup, and application hosting. The Company sells services and products to various industries including, but not limited to, manufacturers, wholesalers and distributors located throughout the United States. The Company is publicly traded and was quoted on the Over-the-Counter Bulletin Board (“OTCQB”) under the symbol “SSNT” until April 18, 2017. Since April 19, 2017, the Company has been listed and is traded on the NASDAQ Capital Market under the symbol “SSNT”. |
NOTE 2 - SUMMARY OF SIGNIFICANT
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principals of Consolidation The accompanying consolidated financial statements include the accounts of the “Company” and its wholly-owned subsidiary, SWK Technologies, Inc. (“SWK”). These consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States. All significant inter-company transactions and accounts have been eliminated in consolidation. Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America 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 revenue and expenses during the reporting period. Actual results could differ from those estimates. Goodwill Goodwill is the excess of acquisition cost of an acquired entity over the fair value of the identifiable net assets acquired. Goodwill is not amortized, but tested for impairment annually or whenever indicators of impairment exist. These indicators may include a significant change in the business climate, legal factors, operating performance indicators, competition, sale or disposition of a significant portion of the business or other factors. No impairment losses were identified or recorded in the years ended December 31, 2017 and 2016. Definite Lived Intangible Assets and Long-lived Assets Purchased intangible assets are recorded at fair value using an independent valuation at the date of acquisition and are amortized over the useful lives of the asset using the straight-line amortization method. The Company assesses potential impairment of its intangible assets and other long-lived assets when there is evidence that recent events or changes in circumstances have made recovery of an asset’s carrying value unlikely. Factors the Company considers important, which may cause impairment include, among others, significant changes in the manner of use of the acquired asset, negative industry or economic trends, and significant underperformance relative to historical or projected operating results. No impairment losses were identified or recorded in the years ended December 31, 2017 and 2016. Revenue Recognition Revenue is recognized when products are shipped, or services are rendered, evidence of a contract exists, the price is fixed or reasonably determinable, and collectability is reasonably assured. Product Revenue Software product revenue is recognized when the product is shipped to the customer. The Company treats the software component and the professional services consulting component as two separate arrangements that represent separate units of accounting. The arrangement consideration is allocated to each unit of accounting based upon that unit’s proportion of the fair value. In a situation where both components are present, software sales revenue is recognized when collectability is reasonably assured and the product is delivered and has stand-alone value based upon vendor specific objective evidence. Service Revenue Service revenue is comprised of primarily professional service consulting revenue, maintenance revenue and other ancillary services provided. Professional service revenue is recognized as service time is incurred. With respect to maintenance services, upon the completion of one year from the date of sale, the Company offers customers an optional annual software maintenance and support agreement for subsequent periods not exceeding one year. Maintenance and support agreements are recorded as deferred revenue and recognized over the respective terms of the agreements, which typically range from three months to one year and are included in services revenue in the Consolidated Statements of Income. Shipping and handling costs charged to customers are classified as revenue, and the shipping and handling costs incurred are included in cost of sales. Unbilled Services The Company recognizes revenue on its professional services as those services are performed or certain obligations are met. Unbilled services represent the revenue recognized but not yet invoiced. Deferred Revenues Deferred revenues consist of maintenance service, customer support services, including telephone support and deposits for future consulting services which will be earned as services are performed over the contractual or stated period, which generally ranges from three to twelve months. Cash and Cash Equivalents The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. The Company maintains cash balances at financial institutions that are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to federally insured limits. At times balances may exceed FDIC insured limits. The Company has not experienced any losses in such accounts. Concentrations The Company maintains its cash with various institutions, which exceed federally insured limits throughout the year. At December 31, 2017, the Company had cash on deposit of approximately $1,933,772 in excess of the federally insured limits of $250,000. For the years ended December 31, 2017 and 2016, our top ten customers accounted for 21% ($7,461,570) and 19% ($6,574,232), respectively, of our total revenues. The Company does not rely on any one specific customer for any significant portion of our revenue base. For both the years ended December 31, 2017 and 2016, purchases from one supplier through a “channel partner” agreement were approximately 23% and 24% respectively. This channel partner agreement is for a one year term and automatically renews for an additional one year term on the anniversary of the agreements effective date. For the years ended December 31, 2017 and 2016, one supplier represented approximately 37% and 42% of total accounts payable, respectively. Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of trade accounts receivable and cash and cash equivalents. As of December 31, 2017, the Company believes it has no significant risk related to its concentration of accounts receivable. Accounts Receivable Accounts receivable consist primarily of invoices for maintenance and professional services. Full payment for software ordered by customers is due in advance of ordering from the software supplier. Payments for maintenance and support plan renewals are due before the beginning of the maintenance period. Terms under our professional service agreements are generally 50% due in advance and the balance on completion of the services. The Company maintains an allowance for bad debt estimated by considering a number of factors, including the length of time the amounts are past due, the Company’s previous loss history, the customer’s current ability to pay its obligations. Property and Equipment Property and equipment is stated at cost, net of accumulated depreciation. Depreciation is computed using the straight-line method based upon the estimated useful lives of the assets, generally three to seven years. Maintenance and repairs that do not materially add to the value of the equipment nor appreciably prolong its life are charged to expense as incurred. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts and the resulting gain or loss is included in the consolidated statements of operations. Income Taxes Deferred income taxes 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, as well as net operating loss carryforwards. Deferred tax assets and liabilities are classified as non-current based on the classification of the related assets or liabilities for financial reporting, or according to the expected reversal dates of the specific temporary differences, if not related to an asset or liability for financial reporting. Valuation allowances are established against deferred tax assets if it is more likely than not that the assets will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates or laws is recognized in operations in the period that includes the enactment date. The Company has federal net operating loss (“NOL”) carryforwards which are subject to limitations under Section 382 of the Internal Revenue Code. The 2017 Tax Cuts and Jobs Act (“Tax Reform”) was enacted on December 22, 2017. The Tax Reform includes a number of changes in existing tax law impacting businesses including a permanent reduction in the U.S. federal statutory rate from 34% to 21%, effective on January 1, 2018. Under U.S. GAAP, changes in tax rates and tax law are accounted for in the period of enactment and deferred tax assets and liabilities are measured at the enacted tax rate. The rate reconciliation includes the Company’s assessment of the accounting under the Tax Reform which is preliminary and is based on information that was available to management at the time the consolidated financial statements were prepared. The Company files income tax returns in the U.S. federal and state jurisdictions. Tax years 2014 to 2017 remain open to examination for both the U.S. federal and state jurisdictions. There were no liabilities for uncertain tax positions at December 31, 2017 and 2016. Fair Value Measurement The accounting standards define fair value and establish a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use on unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is as follows: Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. Level 2: Observable prices that are based on inputs not quoted on active markets, but corroborated by market data. Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. The Company’s current financial assets and liabilities approximate fair value due to their short term nature and include cash, accounts receivable, accounts payable, and accrued liabilities. The carrying value of longer term lease and debt obligations approximate fair value as their stated interest rates approximate the rates currently available. The Company’s intangibles are measured on a non-recurring basis using Level 3 inputs, as discussed in Note 5. Stock-Based Compensation Compensation expense related to share-based transactions, including employee stock options, is measured and recognized in the financial statements based on a determination of the fair value. The grant date fair value is determined using the Black-Scholes-Merton (“Black-Scholes”) pricing model. For employee stock options, the Company recognizes expense over the requisite service period on a straight-line basis (generally the vesting period of the equity grant). The Company’s option pricing model requires the input of highly subjective assumptions, including the expected stock price volatility and expected term. Any changes in these highly subjective assumptions significantly impact stock-based compensation expense. Recently Adopted Authoritative Pronouncements In November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classifications of Deferred Taxes In March 2016, the FASB issued ASU No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting Recent Authoritative Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers: Identifying performance obligations and licensing In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other No other recently issued accounting pronouncements had or are expected to have a material impact on the Company’s consolidated financial statements. |
NOTE 3 - NET INCOME PER COMMON
NOTE 3 - NET INCOME PER COMMON SHARE | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | NOTE 3 – NET INCOME PER COMMON SHARE The Company’s basic income per common share is based on net income for the relevant period, divided by the weighted average number of common shares outstanding during the period. Diluted income per common share is based on net income, divided by the weighted average number of common shares outstanding during the period, including common share equivalents, such as outstanding option and warrants to the extent they are dilutive. The computation of diluted income per share for the year ended December 31, 2017 and December 31, 2016 does not include share equivalents as all warrants and options exceeded the average market price of the common stock. Year Ended December 31, 2017 Year Ended December 31, 2016 Basic net (loss) income per share: Net (loss) income $ (486,469 ) $ 3,436,399 Weighted-average common shares outstanding 4,489,013 4,414,743 Basic net (loss) income per shares $ (0.11 ) $ 0.78 Diluted net (loss) income per share: Net (loss) income $ (486,469 ) $ 3,436,399 Weighted-average common shares outstanding 4,489,013 4,473,403 Total adjusted weighted-average shares 4,489,013 4,473,403 Diluted net (loss) income per share $ (0.11 ) $ 0.77 The following table summarizes securities that, if exercised, would have an anti-dilutive effect on earnings per share. Year Ended December 31, 2017 Year Ended December 31, 2016 Stock options 62,280 143,576 Warrants 208,241 203,253 Total potential dilutive securities not included in loss per share 270,521 346,829 |
NOTE 4 - PROPERTY AND EQUIPMENT
NOTE 4 - PROPERTY AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | NOTE 4 – PROPERTY AND EQUIPMENT Property and equipment is summarized as follows: December 31, 2017 December 31, 2016 Leasehold improvements $ 88,511 $ 30,557 Equipment, furniture and fixtures 2,043,177 1,744,439 2,131,688 1,774,996 Less: Accumulated depreciation (1,564,156 ) (1,308,794 ) Property and equipment, net $ 567,532 $ 466,202 Depreciation and amortization expense related to these assets for the years ended December 31, 2017 and 2016 was $255,362 and $232,316. Property and equipment under capital leases are summarized as follows: December 31, 2017 December 31, 2016 Equipment, furniture and fixtures 315,560 521,905 Less: Accumulated depreciation (126,478 ) (335,672 ) Property and equipment, net $ 189,082 $ 186,233 |
NOTE 5 - INTANGIBLE ASSETS
NOTE 5 - INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | NOTE 5 – INTANGIBLE ASSETS Intangible assets consist of developed intellectual property carried at cost less accumulated amortization and customer lists acquired at fair value less accumulated amortization. Amortization is computed using the straight-line method over the estimated useful lives. The components of intangible assets are as follows: December 31, 2017 December 31, 2016 Estimated Useful Lives Proprietary developed software $ 1,192,109 $ 677,829 5 – 7 Intellectual property, customer list, and acquired contracts 3,129,551 3,069,551 5 – 15 Total intangible assets $ 4,321,660 $ 3,747,380 Less: accumulated amortization (1,681,203 ) (1,316,269 ) $ 2,640,457 $ 2,431,111 Amortization expense related to the above intangible assets was $364,934 and $452,344, respectively, the years ended December 31, 2017 and 2016. Included in proprietary developed software is $707,118 not yet in service and accordingly no amortization was recorded. The Company expects the proprietary developed software to be placed in service in 2018, and has included amortization in the future amortization schedule accordingly. On September 1, 2017 the Company paid $60,000 to an entity for its customer list. The Company expects future amortization expense to be the following: Amortization 2018 $ 387,001 2019 387,001 2020 369,010 2021 332,460 2022 265,759 thereafter 899,226 Total $ 2,640,457 |
NOTE 6 - LINE OF CREDIT AND TER
NOTE 6 - LINE OF CREDIT AND TERM LOAN AND PROMISSORY NOTE | 12 Months Ended |
Dec. 31, 2017 | |
Line of Credit and Term Loan [Abstract] | |
Line of Credit and Term Loan [Text Block] | NOTE 6 – LINE OF CREDIT AND PROMISSORY NOTE On July 21, 2016, SWK entered into a Revolving Demand Note (the “Revolving Demand Note”) by and between SWK (the “Borrower”) and M&T Bank (“Lender”), a commercial lender. The Lender has agreed to loan SWK up to a principal amount of one million dollars. The interest rate on the Revolving Demand Note shall be a variable rate, equal to the “Prime Rate”, plus ninety-five one-hundredths percent (0.95%) per annum. There is a minimum interest rate floor of four percent (4%). The Revolving Demand Note is secured by all of the Borrower’s assets pursuant to a Security Agreement. Furthermore, on July 21, 2016, the Company and Mr. Mark Meller, individually, entered into Unlimited Guaranty agreements (the “Guaranty Agreements”) with the Lender. The line is also collateralized by substantially all of the assets of the Company. Under the Guaranty Agreements, the Company and Mr. Meller personally, jointly and severally guaranteed the liabilities of the Borrower due and owing under the terms of the Revolving Demand Note. At December 31, 2017 and December 31, 2016, the outstanding balance was $0. On May 6, 2014, SWK acquired certain assets of ESC, Inc. pursuant to an Asset Purchase Agreement for a promissory note in the aggregate principal amount of $350,000 (the “ESC Note”). The ESC Note matures on April 1, 2019. Monthly payments are $6,135 including interest at 2% per year. At December 31, 2017 and December 31, 2016, the outstanding balance was $102,742 and $173,535 respectively. On March 11, 2015, SWK acquired certain assets of 2000 SOFT, Inc. d/b/a Accounting Technology Resource (ATR) pursuant to an Asset Purchase Agreement for cash of $80,000 and a promissory note for $175,000 (the “ATR Note”). The ATR note matures on February 1, 2018. Monthly payments are $5,012 including interest at 2% per year. At December 31, 2017 and December 31, 2016, the outstanding balance was $14,987 and $74,194 respectively. On July 6, 2015, SWK acquired certain assets of ProductiveTech Inc. (PTI) pursuant to an Asset Purchase Agreement cash of $500,000 and a promissory note for $600,000 (the “PTI Note”). The PTI note is due in 60 months from the closing date and bears interest at a rate of two and one half (2.5%) percent. The monthly payments including interest are $10,645. At December 31, 2017 and December 31, 2016, the outstanding balance was $319,249 and $437,403 respectively. On October 19, 2015, SWK acquired certain assets of Oates & Company, LLC (Oates) pursuant to an Asset Purchase Agreement cash of $125,000 and a promissory note for $175,000 (the “Oates Note”). The Oates note is due in three years from the closing date and bears interest at a rate of two (2%) percent. The monthly payments including interest are $5,012. At December 31, 2017 and December 31, 2016, the outstanding balance was $49,494 and $108,018 respectively. At December 31, 2017, future payments of promissory notes are as follows over each of the next three fiscal years: 2018 $ 257,846 2019 154,726 2020 73,900 Total $ 486,472 |
NOTE 7 - CAPITAL LEASE OBLIGATI
NOTE 7 - CAPITAL LEASE OBLIGATIONS | 12 Months Ended |
Dec. 31, 2017 | |
Leases, Capital [Abstract] | |
Capital Leases in Financial Statements of Lessee Disclosure [Text Block] | NOTE 7 – CAPITAL LEASE OBLIGATIONS The Company has entered into lease commitments for equipment that meet the requirements for capitalization. The equipment has been capitalized and is included property and equipment, net in the accompanying balance sheets. The related obligations are based upon the present value of the future minimum lease payments with interest rates ranging from 7.1% to 9%. At December 31, 2017, future payments under capital leases are as follows: 2018 $ 104,094 2019 45,249 2020 28,489 Total minimum lease payments 177,832 Less amounts representing interest (14,775 ) Present value of net minimum lease payments 163,057 Less current portion (94,443 ) Long-term capital lease obligation $ 68,614 |
NOTE 8 - EQUITY
NOTE 8 - EQUITY | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE 8 – EQUITY Equity On January 11, 2016, the Company announced the payment of a $0.06 special cash dividend per share of Common Stock. The dividend payments were paid out on January 20, 2016 for an aggregate amount of $264,699, which reduced additional paid in capital. On July 28, 2016 (the “ Effective Date Preferred Stock Purchase Agreement Certificate of Designation Delaware Secretary of State On January 23, 2017, the Company announced the payment of a $0.02 special cash dividend per share of Common Stock. The dividend payments were paid out on January 31, 2017 for an aggregate amount of $89,566, which was applied against additional paid in capital . On January 27, 2017 the Company issued 100 shares of stock each to 125 non-executive employees of SWK valued at $47,500 based on the current market price at issue date. On April 24, 2017, the Company announced the payment of a $0.02 special cash dividend per share of Common Stock. The dividend payments were paid out on May 10, 2017 for an aggregate amount of $89,816, which was applied against additional paid in capital . On November 15, 2017, the Company announced the payment of a $0.04 special cash dividend per share of Common Stock. The dividend payments were paid out on December 4, 2017 for an aggregate amount of $179,632, which was applied against additional paid in capital . Options Total stock compensation recognized for the year ended December 31, 2017 and 2016 was $34,265 and $42,795, respectively. A summary of the status of the Company’s stock option plans for the fiscal years ended December 31, 2017 and 2016 and changes during the years are presented below (in number of options): Number of Options Average Exercise Price Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding options at January 1, 2016 183,576 $ 4.49 2.7 years $ -0- Options granted - - Options canceled/forfeited (40,000 ) $ 4.50 Outstanding options at December 31, 2016 143,576 $ 3.76 1.6 years $ -0- Options granted - $ - Options canceled/forfeited (81,296 ) $ 4.80 Outstanding options at December 31, 2017 62,280 $ 3.78 2.0 years $ -0- Vested Options: December 31, 2017: 34,640 $ 3.61 1.8 years $ -0- December 31, 2016: 103,575 $ 4.47 1.0 years $ -0- As of December 31, 2017 the unamortized compensation expense for stock options was $70,535. Unamortized compensation expense is expected to be recognized over a weighted-average period of 2.4 years. Warrants On March 27, 2017 the Company granted 4,988 warrants with a fair value of approximately $19,923, which immediately vested, to John Schachtel as part of his compensation for agreeing to join the Board of Directors. The estimated fair value of the warrant has been calculated based on a Black-Scholes pricing model using the following assumptions: a) fair market value of stock of $4.00; b) exercise price of $4.01; c) Dividend yield of 0%; d) Risk free interest rate of 1.42%; e) expected volatility of 284.28%; f) Expected life of 5 years. The following table summarizes the warrants transactions: Warrants Outstanding Weighted Average Exercise Price Balance, January 1, 2016 203,253 $ 5.29 Granted - $ - Exercised - $ - Canceled - $ - Outstanding and Exercisable December 31, 2016 203,253 $ 5.29 Granted 4,988 $ 4.01 Exercised - $ - Canceled - $ - Outstanding and Exercisable December 31, 2017 208,241 $ 5.26 |
NOTE 9 - INCOME TAXES
NOTE 9 - INCOME TAXES | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | NOTE 9 – INCOME TAXES The recognized deferred tax asset is based upon the expected utilization of its benefit from future taxable income. The Company has federal net operating loss (“NOL”) carryforwards of approximately as of December 31, 2017, The foregoing amounts are management’s estimates and the actual results could differ from those estimates. Future profitability in this competitive industry depends on continually obtaining and fulfilling new profitable sales agreements and modifying products. The inability to obtain new profitable contracts could reduce estimates of future profitability, which could affect the Company’s ability to realize the deferred tax assets. Significant components of the Company’s deferred tax assets and liabilities are summarized as follows: December 31, December 31, 2017 2016 Deferred tax assets: Net operating loss carry forwards $ 1,745,000 $ 2,660,000 Long lived assets 285,000 355,000 Share based payments 13,000 8,000 Allowance for doubtful accounts 118,000 150,000 Other 15,000 11,000 Deferred tax asset 2,176,000 3,184,000 Deferred tax liabilities: Long lived assets (179,000 ) (179,000 ) Deferred tax liabilities (179,000 ) (179,000 ) Net deferred tax asset 1,997,000 3,005,000 Less: Valuation allowance (634,000 ) (590,098 ) Net deferred tax asset $ 1,363,000 $ 2,414,902 The 2017 Tax Cuts and Jobs Act (“Tax Reform”) was enacted on December 22, 2017. The Tax Reform includes a number of changes in existing tax law impacting businesses including a permanent reduction in the U.S. federal statutory rate from 34% to 21%, effective on January 1, 2018. Under U.S. GAAP, changes in tax rates and tax law are accounted for in the period of enactment and deferred tax assets and liabilities are measured at the enacted tax rate. The rate reconciliation includes the Company’s assessment of the accounting under the Tax Reform which is preliminary and is based on information that was available to management at the time the consolidated financial statements were prepared. Accordingly, the Company has determined a preliminary $934,000 of tax provision related to Tax Reform. This initial assessment is subject to adjustment in future periods for factors including the completion of federal and state tax returns for 2017 and finalization of gross deferred tax differences, future interpretive guidance expected to be issued by U.S. Treasury, future interpretive guidance issued by states regarding conformity with the Internal Revenue Code provisions as of December 31, 2017, ongoing IRS examinations and the additional time required to refine calculations. For the year ended December 31, 2017, the Company’s Federal and State provision requirements were calculated based on the estimated tax rate. The Federal effective rate is higher than the statutory rate primarily due to change in federal statutory rate described above and Incentive Stock Options (ISO) and 50% of general meal and entertainment expense which are not tax deductible. The total provision for the year ended December 31, 2017 was $1,394,031. For the year ended December 31, 2016, the Company’s Federal and State provision requirements were offset by the reversal of a significant portion of our valuation allowance, no longer deemed necessary, taking into consideration Section 382 limitations. The Company recorded a tax benefit of $2,563,637, which represents a reduction in its valuation allowance on tax attributes that are expected to be utilized based on management’s assessment and evaluation of current and projected income. Additionally, the tax return to provision true-up of prior year taxes owed was a result of over accrual of taxes for the 2015 tax year. A reconciliation of the statutory income tax rate to the effective rate is as follows for the period December 31, 2017 and 2016: December 31, December 31, 2017 2016 Federal income tax rate 34 % 34 % State income tax, net of federal benefit 10 % 5 % Permanent differences 4 % 6 % Prior year adjustments - % (20 %) 48 % 25 % Change in tax rates 103 % - Change in valuation allowance 2 % (208 %) Effective income tax rate 153 % (183 %) Income tax provision (benefit): Year Ended December 31, December 31, 2017 2016 Current: Federal $ 183,546 $ (108,832 ) State and local 158,583 100,000 Total current tax provision (benefit) 342,129 (8,832 ) Deferred: Federal 1,159,502 334,786 State and local (107,600 ) 13,949 Release of valuation allowance - (2,563,637 ) Total deferred tax provision (benefit) 1,051,902 (2,214,902 ) Total provision (benefit) $ 1,394,031 (2,223,734 ) |
NOTE 10 - RELATED PARTY TRANSAC
NOTE 10 - RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | NOTE 10 – RELATED PARTY TRANSACTIONS The Company leases its North Syracuse office space from its current CFO, Crandall Melvin III which expires on May 31, 2018. The monthly rent for this office space is $2,100. Total rent paid for 2017 and 2016 was $25,200 and $25,200 respectively under this lease. The Company leases its Seattle office space from Mary Abdian, an employee of SWK, which expires September 30, 2018. The monthly rent for this office space is $3,090 and increases 3% each year. Total rent paid for 2017 and 2016 under this lease was $37,358 and $36,270 respectively under the lease. As of December 31, 2017, long term debt and contingent consideration are considered related party liabilities as holders are current employees of the company, see Note 6 and Note 11. |
NOTE 12 - COMMITMENTS
NOTE 12 - COMMITMENTS | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 11 – COMMITMENTS Operating Leases Our main office was located at 5 Regent Street, Livingston, NJ where we had 6,986 square feet of office space at a monthly rent of $7,400. The lease expired on December 31, 2016 and was subsequently extended for two months ending February 28, 2017. On March 1, 2017 the Company entered into a new operating lease agreement for its main office located at 120 Eagle Rock Ave, East Hanover, NJ. The main office premises consist of 5,129 square feet of office space at a monthly rent starting at $8,762 and escalating to $10,044 per month by the end of the term April 30, 2024. On September 11, 2017, the company entered into an operating lease agreement for an additional 1,870 square feet of office space at 120 Eagle Rock Ave, East Hanover, NJ commencing October 1, 2017 with a monthly rent of $3,506 for a period of one year. The Company has a lease, with a one-year extension, for office space at 6834 Buckley Road, North Syracuse, New York, at a monthly rent of $2,100. The lease expired on May 31, 2015 and was subsequently extended for a three year term commencing June 1, 2015 and ending May 31, 2018. The Company also leases 2,700 square feet of office space in Skokie, Illinois with a monthly rent of $3,000. This lease expires April 30, 2018. The Company leases 702 square feet of office space in Minneapolis, MN with a monthly rent of $1,515 a month. This lease expired March 31, 2017 and was renewed for one year at $1,560 per month. The Company leases 2,105 square feet of office space in Phoenix, AZ starting at $1,271 and escalating to $2,894 per month by the end of the term September 30, 2019. The Company leases 1,500 square feet of office space in Seattle, WA with a monthly rent of $3,000 a month escalating to $3,183 per month. The lease expires September 30, 2018. The Company leased 383 square feet of office space in Spartanburg, SC with a monthly rent of $450 a month which expired June 30, 2016. The Company leases 3,422 square feet of office space in Greensboro, NC with a monthly rent of $4,182 a month. The lease expired February 28, 2017 and was extended after reducing the rental space to 2,267 square feet at a monthly rent of $2,765 per month. The extension expires February 28, 2020. The Company leases 1,745 square feet of office space in Santa Ana, CA with a monthly rent of $3,225 per month escalating to $3,402 per month by the end of the lease term, April 30, 2018. On January 12, 2017, the Company entered into an operating lease agreement for its south New Jersey office commencing March 1, 2017. The Company leases 6,115 square feet of office space in Thorofare, NJ starting at $4,591 per month and escalating to $5,168 per month by the end of the term February 28, 2022. Total rent expense under these operating leases for the year ended December 31, 2017 and 2016 was $412,272 and $365,205, respectively. The following is a schedule of approximate future minimum rental payments for operating leases subsequent to the year ended December 31, 2017. 2018 $ 329,773 2019 228,671 2020 177,763 2021 176,258 2022 127,447 Thereafter 159,854 $ 1,199,766 Contingent Consideration On October 1, 2015, SWK entered into an Asset Purchase Agreement (the “Macabe Purchase Agreement”) with The Macabe Associates, Inc., (“Macabe”), a Washington corporation and Mary Abdian and John Nicholson in their individual capacity as Shareholders. SWK acquired certain assets and liabilities of Macabe (as defined in the Macabe Purchase Agreement). In consideration for the acquired assets, the Company paid $21,423 in cash. Additionally, the Company is obligated to 35% of the net margin on software maintenance renewals for former Macabe customers for the first twelve months, and then 30%, 25% and 20% of the net margin on software maintenance renewals for the following three years. The Company is obligated to pay 50% the first year, and 40%, 30% and 20% the three years after on the net margin on EASY Solution Maintenance, new software and license to existing Macabe customers and EASY Solutions software and maintenance sales to new customers. On any former Macabe customers migrating to Netsuite, X3 or Acumatica, the Company is obligated to pay 50% of the net margin of the sale after applicable costs and commissions for the three years period after the acquisition. The Company estimated this contingent consideration to be approximately $417,971 at acquisition. Certain payments were made in each of these contingent consideration components, resulting in a remaining balance of $105,635 as of December 31, 2017. The Company estimates that the contingent consideration will be fully paid by September 30, 2019. Employment agreements The Company’s Chief Executive Officer and President has had an Employment Agreement with the Company since September 15, 2003. On February 4, 2016 (the “Effective Date”), the Company entered into an amended and restated employment agreement (the “Meller Employment Agreement”) with Mark Meller, pursuant to which Mr. Meller will continue to serve as the Company’s President and Chief Executive Officer. The Meller Employment Agreement was entered into by the Company and Mr. Meller primarily to extend the term of Mr. Meller’s employment. The term of the Meller Employment Agreement is for an additional 7 years through September of 2023 (the “Term”) and shall automatically renew for additional periods of one year unless otherwise terminated in accordance with the employment agreement. As of the renewal date, the Company agreed to pay Mr. Meller and annual salary of $565,000 with a ten percent (10%) increase every year. The Meller Employment Agreement provides for a severance payment to Mr. Meller of three hundred percent (300%), less $100,000 of his gross income for services rendered to the Company in each of the five prior calendar years should his employment be terminated following a change in control (as defined in the Meller Employment Agreement). |
NOTE 13 - SUBSEQUENT EVENTS
NOTE 13 - SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | NOTE 12 – SUBSEQUENT EVENTS On January 18, 2018, the Company issued 100 shares of stock each to 10 non-executive employees of SWK Technologies, Inc. valued at $3,830 based on the current market price at issuance date. On February 8, 2018, Board approved entering into a financial advisory agreement with WestPark Capital, Inc. The Company issued 4,825 shares of Common Stock at $3.70 per share or $17,853. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation and Principals of Consolidation The accompanying consolidated financial statements include the accounts of the “Company” and its wholly-owned subsidiary, SWK Technologies, Inc. (“SWK”). These consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States. All significant inter-company transactions and accounts have been eliminated in consolidation. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America 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 revenue and expenses during the reporting period. Actual results could differ from those estimates. |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | Goodwill Goodwill is the excess of acquisition cost of an acquired entity over the fair value of the identifiable net assets acquired. Goodwill is not amortized, but tested for impairment annually or whenever indicators of impairment exist. These indicators may include a significant change in the business climate, legal factors, operating performance indicators, competition, sale or disposition of a significant portion of the business or other factors. No impairment losses were identified or recorded in the years ended December 31, 2017 and 2016. |
Impairment or Disposal of Long-Lived Assets, Including Intangible Assets, Policy [Policy Text Block] | Definite Lived Intangible Assets and Long-lived Assets Purchased intangible assets are recorded at fair value using an independent valuation at the date of acquisition and are amortized over the useful lives of the asset using the straight-line amortization method. The Company assesses potential impairment of its intangible assets and other long-lived assets when there is evidence that recent events or changes in circumstances have made recovery of an asset’s carrying value unlikely. Factors the Company considers important, which may cause impairment include, among others, significant changes in the manner of use of the acquired asset, negative industry or economic trends, and significant underperformance relative to historical or projected operating results. No impairment losses were identified or recorded in the years ended December 31, 2017 and 2016. |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition Revenue is recognized when products are shipped, or services are rendered, evidence of a contract exists, the price is fixed or reasonably determinable, and collectability is reasonably assured. Product Revenue Software product revenue is recognized when the product is shipped to the customer. The Company treats the software component and the professional services consulting component as two separate arrangements that represent separate units of accounting. The arrangement consideration is allocated to each unit of accounting based upon that unit’s proportion of the fair value. In a situation where both components are present, software sales revenue is recognized when collectability is reasonably assured and the product is delivered and has stand-alone value based upon vendor specific objective evidence. Service Revenue Service revenue is comprised of primarily professional service consulting revenue, maintenance revenue and other ancillary services provided. Professional service revenue is recognized as service time is incurred. With respect to maintenance services, upon the completion of one year from the date of sale, the Company offers customers an optional annual software maintenance and support agreement for subsequent periods not exceeding one year. Maintenance and support agreements are recorded as deferred revenue and recognized over the respective terms of the agreements, which typically range from three months to one year and are included in services revenue in the Consolidated Statements of Income. Shipping and handling costs charged to customers are classified as revenue, and the shipping and handling costs incurred are included in cost of sales. |
Trade and Other Accounts Receivable, Unbilled Receivables, Policy [Policy Text Block] | Unbilled Services The Company recognizes revenue on its professional services as those services are performed or certain obligations are met. Unbilled services represent the revenue recognized but not yet invoiced. |
Revenue Recognition, Deferred Revenue [Policy Text Block] | Deferred Revenues Deferred revenues consist of maintenance service, customer support services, including telephone support and deposits for future consulting services which will be earned as services are performed over the contractual or stated period, which generally ranges from three to twelve months. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. The Company maintains cash balances at financial institutions that are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to federally insured limits. At times balances may exceed FDIC insured limits. The Company has not experienced any losses in such accounts. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentrations The Company maintains its cash with various institutions, which exceed federally insured limits throughout the year. At December 31, 2017, the Company had cash on deposit of approximately $1,933,772 in excess of the federally insured limits of $250,000. For the years ended December 31, 2017 and 2016, our top ten customers accounted for 21% ($7,461,570) and 19% ($6,574,232), respectively, of our total revenues. The Company does not rely on any one specific customer for any significant portion of our revenue base. For both the years ended December 31, 2017 and 2016, purchases from one supplier through a “channel partner” agreement were approximately 23% and 24% respectively. This channel partner agreement is for a one year term and automatically renews for an additional one year term on the anniversary of the agreements effective date. For the years ended December 31, 2017 and 2016, one supplier represented approximately 37% and 42% of total accounts payable, respectively. Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of trade accounts receivable and cash and cash equivalents. As of December 31, 2017, the Company believes it has no significant risk related to its concentration of accounts receivable. |
Receivables, Policy [Policy Text Block] | Accounts Receivable Accounts receivable consist primarily of invoices for maintenance and professional services. Full payment for software ordered by customers is due in advance of ordering from the software supplier. Payments for maintenance and support plan renewals are due before the beginning of the maintenance period. Terms under our professional service agreements are generally 50% due in advance and the balance on completion of the services. The Company maintains an allowance for bad debt estimated by considering a number of factors, including the length of time the amounts are past due, the Company’s previous loss history, the customer’s current ability to pay its obligations. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment Property and equipment is stated at cost, net of accumulated depreciation. Depreciation is computed using the straight-line method based upon the estimated useful lives of the assets, generally three to seven years. Maintenance and repairs that do not materially add to the value of the equipment nor appreciably prolong its life are charged to expense as incurred. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts and the resulting gain or loss is included in the consolidated statements of operations. |
Income Tax, Policy [Policy Text Block] | Income Taxes Deferred income taxes 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, as well as net operating loss carryforwards. Deferred tax assets and liabilities are classified as non-current based on the classification of the related assets or liabilities for financial reporting, or according to the expected reversal dates of the specific temporary differences, if not related to an asset or liability for financial reporting. Valuation allowances are established against deferred tax assets if it is more likely than not that the assets will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates or laws is recognized in operations in the period that includes the enactment date. The Company has federal net operating loss (“NOL”) carryforwards which are subject to limitations under Section 382 of the Internal Revenue Code. The 2017 Tax Cuts and Jobs Act (“Tax Reform”) was enacted on December 22, 2017. The Tax Reform includes a number of changes in existing tax law impacting businesses including a permanent reduction in the U.S. federal statutory rate from 34% to 21%, effective on January 1, 2018. Under U.S. GAAP, changes in tax rates and tax law are accounted for in the period of enactment and deferred tax assets and liabilities are measured at the enacted tax rate. The rate reconciliation includes the Company’s assessment of the accounting under the Tax Reform which is preliminary and is based on information that was available to management at the time the consolidated financial statements were prepared. The Company files income tax returns in the U.S. federal and state jurisdictions. Tax years 2014 to 2017 remain open to examination for both the U.S. federal and state jurisdictions. There were no liabilities for uncertain tax positions at December 31, 2017 and 2016. |
Fair Value Measurement, Policy [Policy Text Block] | Fair Value Measurement The accounting standards define fair value and establish a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use on unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is as follows: Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. Level 2: Observable prices that are based on inputs not quoted on active markets, but corroborated by market data. Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. The Company’s current financial assets and liabilities approximate fair value due to their short term nature and include cash, accounts receivable, accounts payable, and accrued liabilities. The carrying value of longer term lease and debt obligations approximate fair value as their stated interest rates approximate the rates currently available. The Company’s intangibles are measured on a non-recurring basis using Level 3 inputs, as discussed in Note 5. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock-Based Compensation Compensation expense related to share-based transactions, including employee stock options, is measured and recognized in the financial statements based on a determination of the fair value. The grant date fair value is determined using the Black-Scholes-Merton (“Black-Scholes”) pricing model. For employee stock options, the Company recognizes expense over the requisite service period on a straight-line basis (generally the vesting period of the equity grant). The Company’s option pricing model requires the input of highly subjective assumptions, including the expected stock price volatility and expected term. Any changes in these highly subjective assumptions significantly impact stock-based compensation expense. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Adopted Authoritative Pronouncements In November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classifications of Deferred Taxes In March 2016, the FASB issued ASU No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting Recent Authoritative Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers: Identifying performance obligations and licensing In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other No other recently issued accounting pronouncements had or are expected to have a material impact on the Company’s consolidated financial statements. |
NOTE 3 - NET INCOME PER COMMO21
NOTE 3 - NET INCOME PER COMMON SHARE (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The Company’s basic income per common share is based on net income for the relevant period, divided by the weighted average number of common shares outstanding during the period. Diluted income per common share is based on net income, divided by the weighted average number of common shares outstanding during the period, including common share equivalents, such as outstanding option and warrants to the extent they are dilutive. The computation of diluted income per share for the year ended December 31, 2017 and December 31, 2016 does not include share equivalents as all warrants and options exceeded the average market price of the common stock. Year Ended December 31, 2017 Year Ended December 31, 2016 Basic net (loss) income per share: Net (loss) income $ (486,469 ) $ 3,436,399 Weighted-average common shares outstanding 4,489,013 4,414,743 Basic net (loss) income per shares $ (0.11 ) $ 0.78 Diluted net (loss) income per share: Net (loss) income $ (486,469 ) $ 3,436,399 Weighted-average common shares outstanding 4,489,013 4,473,403 Total adjusted weighted-average shares 4,489,013 4,473,403 Diluted net (loss) income per share $ (0.11 ) $ 0.77 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | The following table summarizes securities that, if exercised, would have an anti-dilutive effect on earnings per share. Year Ended December 31, 2017 Year Ended December 31, 2016 Stock options 62,280 143,576 Warrants 208,241 203,253 Total potential dilutive securities not included in loss per share 270,521 346,829 |
NOTE 4 - PROPERTY AND EQUIPME22
NOTE 4 - PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Property and equipment is summarized as follows: December 31, 2017 December 31, 2016 Leasehold improvements $ 88,511 $ 30,557 Equipment, furniture and fixtures 2,043,177 1,744,439 2,131,688 1,774,996 Less: Accumulated depreciation (1,564,156 ) (1,308,794 ) Property and equipment, net $ 567,532 $ 466,202 |
Schedule of Capital Leased Assets [Table Text Block] | Property and equipment under capital leases are summarized as follows: December 31, 2017 December 31, 2016 Equipment, furniture and fixtures 315,560 521,905 Less: Accumulated depreciation (126,478 ) (335,672 ) Property and equipment, net $ 189,082 $ 186,233 |
NOTE 5 - INTANGIBLE ASSETS (Tab
NOTE 5 - INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | The components of intangible assets are as follows: December 31, 2017 December 31, 2016 Estimated Useful Lives Proprietary developed software $ 1,192,109 $ 677,829 5 – 7 Intellectual property, customer list, and acquired contracts 3,129,551 3,069,551 5 – 15 Total intangible assets $ 4,321,660 $ 3,747,380 Less: accumulated amortization (1,681,203 ) (1,316,269 ) $ 2,640,457 $ 2,431,111 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | The Company expects future amortization expense to be the following: Amortization 2018 $ 387,001 2019 387,001 2020 369,010 2021 332,460 2022 265,759 thereafter 899,226 Total $ 2,640,457 |
NOTE 6 - LINE OF CREDIT AND T24
NOTE 6 - LINE OF CREDIT AND TERM LOAN AND PROMISSORY NOTE (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Line of Credit and Term Loan [Abstract] | |
Schedule of Maturities of Long-term Debt [Table Text Block] | At December 31, 2017, future payments of promissory notes are as follows over each of the next three fiscal years: 2018 $ 257,846 2019 154,726 2020 73,900 Total $ 486,472 |
NOTE 7 - CAPITAL LEASE OBLIGA25
NOTE 7 - CAPITAL LEASE OBLIGATIONS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Leases, Capital [Abstract] | |
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block] | At December 31, 2017, future payments under capital leases are as follows: 2018 $ 104,094 2019 45,249 2020 28,489 Total minimum lease payments 177,832 Less amounts representing interest (14,775 ) Present value of net minimum lease payments 163,057 Less current portion (94,443 ) Long-term capital lease obligation $ 68,614 |
NOTE 8 - EQUITY (Tables)
NOTE 8 - EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Share-based Compensation, Stock Options, Activity [Table Text Block] | A summary of the status of the Company’s stock option plans for the fiscal years ended December 31, 2017 and 2016 and changes during the years are presented below (in number of options): Number of Options Average Exercise Price Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding options at January 1, 2016 183,576 $ 4.49 2.7 years $ -0- Options granted - - Options canceled/forfeited (40,000 ) $ 4.50 Outstanding options at December 31, 2016 143,576 $ 3.76 1.6 years $ -0- Options granted - $ - Options canceled/forfeited (81,296 ) $ 4.80 Outstanding options at December 31, 2017 62,280 $ 3.78 2.0 years $ -0- Vested Options: December 31, 2017: 34,640 $ 3.61 1.8 years $ -0- December 31, 2016: 103,575 $ 4.47 1.0 years $ -0- |
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block] | The following table summarizes the warrants transactions: Warrants Outstanding Weighted Average Exercise Price Balance, January 1, 2016 203,253 $ 5.29 Granted - $ - Exercised - $ - Canceled - $ - Outstanding and Exercisable December 31, 2016 203,253 $ 5.29 Granted 4,988 $ 4.01 Exercised - $ - Canceled - $ - Outstanding and Exercisable December 31, 2017 208,241 $ 5.26 |
NOTE 9 - INCOME TAXES (Tables)
NOTE 9 - INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Significant components of the Company’s deferred tax assets and liabilities are summarized as follows December 31, December 31, 2017 2016 Deferred tax assets: Net operating loss carry forwards $ 1,745,000 $ 2,660,000 Long lived assets 285,000 355,000 Share based payments 13,000 8,000 Allowance for doubtful accounts 118,000 150,000 Other 15,000 11,000 Deferred tax asset 2,176,000 3,184,000 Deferred tax liabilities: Long lived assets (179,000 ) (179,000 ) Deferred tax liabilities (179,000 ) (179,000 ) Net deferred tax asset 1,997,000 3,005,000 Less: Valuation allowance (634,000 ) (590,098 ) Net deferred tax asset $ 1,363,000 $ 2,414,902 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | A reconciliation of the statutory income tax rate to the effective rate is as follows for the period December 31, 2017 and 2016: December 31, December 31, 2017 2016 Federal income tax rate 34 % 34 % State income tax, net of federal benefit 10 % 5 % Permanent differences 4 % 6 % Prior year adjustments - % (20 %) 48 % 25 % Change in tax rates 103 % - Change in valuation allowance 2 % (208 %) Effective income tax rate 153 % (183 %) |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Income tax provision (benefit): Year Ended December 31, December 31, 2017 2016 Current: Federal $ 183,546 $ (108,832 ) State and local 158,583 100,000 Total current tax provision (benefit) 342,129 (8,832 ) Deferred: Federal 1,159,502 334,786 State and local (107,600 ) 13,949 Release of valuation allowance - (2,563,637 ) Total deferred tax provision (benefit) 1,051,902 (2,214,902 ) Total provision (benefit) $ 1,394,031 (2,223,734 ) |
NOTE 12 - COMMITMENTS (Tables)
NOTE 12 - COMMITMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | The following is a schedule of approximate future minimum rental payments for operating leases subsequent to the year ended December 31, 2017. 2018 $ 329,773 2019 228,671 2020 177,763 2021 176,258 2022 127,447 Thereafter 159,854 $ 1,199,766 |
SUPPLEMENTAL SCHEDULE OF NON-29
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: (Details) - USD ($) | Dec. 09, 2016 | Dec. 31, 2017 | Dec. 31, 2016 |
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: (Details) [Line Items] | |||
Capital Lease Obligations Incurred | $ 115,462 | $ 88,369 | |
Debt Conversion, Original Debt, Amount | $ 200,000 | ||
The Macabe Associates, Inc. (Macabe) [Member] | |||
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: (Details) [Line Items] | |||
Debt Conversion, Converted Instrument, Shares Issued (in Shares) | 66,667 |
NOTE 2 - SUMMARY OF SIGNIFICA30
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Cash, Uninsured Amount (in Dollars) | $ 1,933,772 | ||
Cash, FDIC Insured Amount (in Dollars) | $ 250,000 | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 34.00% | 34.00% | |
Minimum [Member] | |||
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Property, Plant and Equipment, Useful Life | 3 years | ||
Maximum [Member] | |||
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Property, Plant and Equipment, Useful Life | 7 years | ||
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | |||
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Concentration Risk, Percentage | 21.00% | 19.00% | |
Revenues (in Dollars) | $ 7,461,570 | $ 6,574,232 | |
Cost of Goods, Total [Member] | Supplier Concentration Risk [Member] | |||
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Concentration Risk, Percentage | 23.00% | 24.00% | |
Purchase Commitment, Description | This channel partner agreement is for a one year term and automatically renews for an additional one year term on the anniversary of the agreements effective date. | ||
Concentration Risk, Accounts Payable [Member] | Supplier Concentration Risk [Member] | |||
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Concentration Risk, Percentage | 37.00% | 42.00% | |
Subsequent Event [Member] | Domestic Tax Authority [Member] | |||
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% |
NOTE 3 - NET INCOME PER COMMO31
NOTE 3 - NET INCOME PER COMMON SHARE (Details) - Schedule of Earnings Per Share, Basic and Diluted - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Basic net (loss) income per share: | ||
Net (loss) income (in Dollars) | $ (486,469) | $ 3,436,399 |
Weighted-average common shares outstanding | 4,489,013 | 4,414,743 |
Basic net (loss) income per shares (in Dollars per share) | $ (0.11) | $ 0.78 |
Diluted net (loss) income per share: | ||
Net (loss) income (in Dollars) | $ (486,469) | $ 3,436,399 |
Weighted-average common shares outstanding | 4,489,013 | 4,473,403 |
Total adjusted weighted-average shares | 4,489,013 | 4,473,403 |
Diluted net (loss) income per share (in Dollars per share) | $ (0.11) | $ 0.77 |
NOTE 3 - NET INCOME PER COMMO32
NOTE 3 - NET INCOME PER COMMON SHARE (Details) - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share - shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Dilutive securities not included in loss per share | 270,521 | 346,829 |
Employee Stock Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Dilutive securities not included in loss per share | 62,280 | 143,576 |
Warrant [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Dilutive securities not included in loss per share | 208,241 | 203,253 |
NOTE 4 - PROPERTY AND EQUIPME33
NOTE 4 - PROPERTY AND EQUIPMENT (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation, Depletion and Amortization | $ 255,362 | $ 232,316 |
NOTE 4 - PROPERTY AND EQUIPME34
NOTE 4 - PROPERTY AND EQUIPMENT (Details) - Schedule of Property and Equipment - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property and Equipment | $ 2,131,688 | $ 1,774,996 |
Less: Accumulated depreciation | (1,564,156) | (1,308,794) |
Property and equipment, net | 567,532 | 466,202 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment | 88,511 | 30,557 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment | $ 2,043,177 | $ 1,744,439 |
NOTE 4 - PROPERTY AND EQUIPME35
NOTE 4 - PROPERTY AND EQUIPMENT (Details) - Schedule of Capital Leased Assets - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Capital Leased Assets [Abstract] | ||
Equipment, furniture and fixtures | $ 315,560 | $ 521,905 |
Less: Accumulated depreciation | (126,478) | (335,672) |
Property and equipment, net | $ 189,082 | $ 186,233 |
NOTE 5 - INTANGIBLE ASSETS (Det
NOTE 5 - INTANGIBLE ASSETS (Details) - USD ($) | Sep. 01, 2017 | Dec. 31, 2017 | Dec. 31, 2016 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of Intangible Assets | $ 364,934 | $ 452,344 | |
Capitalized Computer Software, Additions | 707,118 | ||
Payments to Acquire Intangible Assets | $ 60,000 | $ 60,000 |
NOTE 5 - INTANGIBLE ASSETS (De
NOTE 5 - INTANGIBLE ASSETS (Details) - Schedule of Finite-Lived Intangible Assets - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset, gross | $ 4,321,660 | $ 3,747,380 |
Less: accumulated amortization | (1,681,203) | (1,316,269) |
Intangible asset, net | 2,640,457 | 2,431,111 |
Computer Software, Intangible Asset [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset, gross | 1,192,109 | 677,829 |
Intellectual property, customer list, and acquired contracts [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset, gross | $ 3,129,551 | $ 3,069,551 |
Minimum [Member] | Computer Software, Intangible Asset [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Life | 5 years | |
Minimum [Member] | Intellectual property, customer list, and acquired contracts [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Life | 5 years | |
Maximum [Member] | Computer Software, Intangible Asset [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Life | 7 years | |
Maximum [Member] | Intellectual property, customer list, and acquired contracts [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Life | 15 years |
NOTE 5 - INTANGIBLE ASSETS (38
NOTE 5 - INTANGIBLE ASSETS (Details) - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Abstract] | ||
2,018 | $ 387,001 | |
2,019 | 387,001 | |
2,020 | 369,010 | |
2,021 | 332,460 | |
2,022 | 265,759 | |
thereafter | 899,226 | |
Total | $ 2,640,457 | $ 2,431,111 |
NOTE 6 - LINE OF CREDIT AND T39
NOTE 6 - LINE OF CREDIT AND TERM LOAN AND PROMISSORY NOTE (Details) - USD ($) | Sep. 01, 2017 | Jul. 21, 2016 | Oct. 19, 2015 | Jul. 06, 2015 | Mar. 11, 2015 | May 06, 2014 | Dec. 31, 2017 | Dec. 31, 2016 |
NOTE 6 - LINE OF CREDIT AND TERM LOAN AND PROMISSORY NOTE (Details) [Line Items] | ||||||||
Long-term Debt | $ 486,472 | |||||||
Payments to Acquire Intangible Assets | $ 60,000 | 60,000 | ||||||
Oates & Company, LLC (Oates) [Member] | ||||||||
NOTE 6 - LINE OF CREDIT AND TERM LOAN AND PROMISSORY NOTE (Details) [Line Items] | ||||||||
Payments to Acquire Businesses, Gross | $ 125,000 | |||||||
Notes Payable to Banks [Member] | Prime Rate [Member] | ||||||||
NOTE 6 - LINE OF CREDIT AND TERM LOAN AND PROMISSORY NOTE (Details) [Line Items] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.95% | |||||||
Notes Payable to Banks [Member] | Maximum [Member] | ||||||||
NOTE 6 - LINE OF CREDIT AND TERM LOAN AND PROMISSORY NOTE (Details) [Line Items] | ||||||||
Debt Instrument, Face Amount | $ 1,000,000 | |||||||
Notes Payable to Banks [Member] | Minimum [Member] | ||||||||
NOTE 6 - LINE OF CREDIT AND TERM LOAN AND PROMISSORY NOTE (Details) [Line Items] | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.00% | |||||||
Notes Payable to Banks [Member] | ESC Inc. DBA ESC Software [Member] | ||||||||
NOTE 6 - LINE OF CREDIT AND TERM LOAN AND PROMISSORY NOTE (Details) [Line Items] | ||||||||
Long-term Debt | 0 | $ 0 | ||||||
Notes Payable, Other Payables [Member] | ESC Inc. DBA ESC Software [Member] | ||||||||
NOTE 6 - LINE OF CREDIT AND TERM LOAN AND PROMISSORY NOTE (Details) [Line Items] | ||||||||
Debt Instrument, Face Amount | $ 350,000 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.00% | |||||||
Long-term Debt | 102,742 | 173,535 | ||||||
Debt Instrument, Periodic Payment | $ 6,135 | |||||||
Notes Payable, Other Payables [Member] | 2000 SOFT, Inc. DBA Accounting Technology Resource (ATR) [Member] | ||||||||
NOTE 6 - LINE OF CREDIT AND TERM LOAN AND PROMISSORY NOTE (Details) [Line Items] | ||||||||
Debt Instrument, Face Amount | $ 175,000 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.00% | |||||||
Long-term Debt | 14,987 | 74,194 | ||||||
Debt Instrument, Frequency of Periodic Payment | Monthly | |||||||
Debt Instrument, Periodic Payment | $ 5,012 | |||||||
Payments to Acquire Intangible Assets | $ 80,000 | |||||||
Debt Instrument, Maturity Date | Feb. 1, 2018 | |||||||
Notes Payable, Other Payables [Member] | ProductiveTech, Inc. (PTI) [Member] | ||||||||
NOTE 6 - LINE OF CREDIT AND TERM LOAN AND PROMISSORY NOTE (Details) [Line Items] | ||||||||
Debt Instrument, Face Amount | $ 600,000 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.50% | |||||||
Long-term Debt | 319,249 | 437,403 | ||||||
Debt Instrument, Frequency of Periodic Payment | monthly | |||||||
Debt Instrument, Periodic Payment | $ 10,645 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 500,000 | |||||||
Debt Instrument, Term | 60 months | |||||||
Notes Payable, Other Payables [Member] | Oates & Company, LLC (Oates) [Member] | ||||||||
NOTE 6 - LINE OF CREDIT AND TERM LOAN AND PROMISSORY NOTE (Details) [Line Items] | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.00% | |||||||
Debt Instrument, Periodic Payment | $ 5,012 | |||||||
Debt Instrument, Term | 3 years | |||||||
Business Combination, Consideration Transferred, Liabilities Incurred | $ 175,000 | |||||||
Convertible Debt | $ 49,494 | $ 108,018 |
NOTE 6 - LINE OF CREDIT AND T40
NOTE 6 - LINE OF CREDIT AND TERM LOAN AND PROMISSORY NOTE (Details) - Schedule of Maturities of Long-term Debt | Dec. 31, 2017USD ($) |
Schedule of Maturities of Long-term Debt [Abstract] | |
2,018 | $ 257,846 |
2,019 | 154,726 |
2,020 | 73,900 |
Total | $ 486,472 |
NOTE 7 - CAPITAL LEASE OBLIGA41
NOTE 7 - CAPITAL LEASE OBLIGATIONS (Details) | Dec. 31, 2016 |
Minimum [Member] | |
NOTE 7 - CAPITAL LEASE OBLIGATIONS (Details) [Line Items] | |
Capital Leases of Lessee, Contingent Rentals, Basis Spread on Variable Rate | 7.10% |
Maximum [Member] | |
NOTE 7 - CAPITAL LEASE OBLIGATIONS (Details) [Line Items] | |
Capital Leases of Lessee, Contingent Rentals, Basis Spread on Variable Rate | 9.00% |
NOTE 7 - CAPITAL LEASE OBLIGA42
NOTE 7 - CAPITAL LEASE OBLIGATIONS (Details) - Schedule of Future Minimum Lease Payments for Capital Leases - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Future Minimum Lease Payments for Capital Leases [Abstract] | ||
2,018 | $ 104,094 | |
2,019 | 45,249 | |
2,020 | 28,489 | |
Total minimum lease payments | 177,832 | |
Less amounts representing interest | (14,775) | |
Present value of net minimum lease payments | 163,057 | |
Less current portion | (94,443) | $ (94,714) |
Long-term capital lease obligation | $ 68,614 | $ 60,127 |
NOTE 8 - EQUITY (Details)
NOTE 8 - EQUITY (Details) | Dec. 04, 2017USD ($) | Nov. 15, 2017$ / shares | May 10, 2017USD ($) | Apr. 24, 2017$ / shares | Mar. 27, 2017USD ($)$ / sharesshares | Jan. 27, 2017USD ($)shares | Jan. 23, 2017USD ($)$ / shares | Jul. 28, 2016USD ($)shares | Jan. 11, 2016$ / shares | Dec. 31, 2017USD ($)shares | Dec. 31, 2016USD ($)shares |
NOTE 8 - EQUITY (Details) [Line Items] | |||||||||||
Dividends Payable, Date Declared | Jan. 11, 2016 | ||||||||||
Common Stock, Dividends, Per Share, Cash Paid (in Dollars per share) | $ / shares | $ 0.02 | $ 0.06 | |||||||||
Dividends Payable, Date to be Paid | Jan. 20, 2016 | ||||||||||
Dividends, Common Stock, Cash | $ 264,699 | ||||||||||
Proceeds from Issuance of Preferred Stock and Preference Stock | $ 0 | 100 | |||||||||
Payments of Dividends | $ 179,632 | $ 89,816 | $ 89,566 | 359,014 | 264,699 | ||||||
Stock Issued During Period, Shares, Share-based Compensation, Gross (in Shares) | shares | 100 | ||||||||||
Number of Employees | 125 | ||||||||||
Stock Issued During Period, Value, Share-based Compensation, Gross | $ 47,500 | ||||||||||
Common Stock, Dividends, Per Share, Declared (in Dollars per share) | $ / shares | $ 0.04 | $ 0.02 | |||||||||
Share-based Compensation | 101,688 | $ 42,795 | |||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ 70,535 | ||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 146 days | ||||||||||
Class of Warrant or Rights, Granted (in Shares) | shares | 4,988 | 0 | |||||||||
Fair Value Assumptions, Expected Volatility Rate | 284.28% | ||||||||||
Series B Preferred Stock [Member] | |||||||||||
NOTE 8 - EQUITY (Details) [Line Items] | |||||||||||
Stock Issued During Period, Shares, New Issues (in Shares) | shares | 1 | ||||||||||
Proceeds from Issuance of Preferred Stock and Preference Stock | $ 100 | ||||||||||
Preferred Stock, Voting Rights | Each one (1) share of the Series B Preferred Stock shall have voting rights equal to (x) the total issued and outstanding Common Stock eligible to vote at the time of the respective vote divided by (y) forty-nine one-hundredths (0.49) minus (z) the total issued and outstanding Common Stock eligible to vote at the time of the respective vote.  For the avoidance of doubt, if the total issued and outstanding Common Stock eligible to vote at the time of the respective vote is 5,000,000, the voting rights of the Series B Preferred Stock shall be equal to 5,204,082 (e.g. (5,000,000 / 0.49) – 5,000,000 = 5,204,082). | ||||||||||
Director [Member] | |||||||||||
NOTE 8 - EQUITY (Details) [Line Items] | |||||||||||
Class of Warrant or Rights, Granted (in Shares) | shares | 4,988 | ||||||||||
Warrants, Fair Value of Warrants, Granted | $ 19,923 | ||||||||||
Share Price (in Dollars per share) | $ / shares | $ 4 | ||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | $ / shares | $ 4.01 | ||||||||||
Fair Value Assumptions, Expected Dividend Rate | 0.00% | ||||||||||
Fair Value Assumptions, Risk Free Interest Rate | 1.42% | ||||||||||
Fair Value Assumptions, Expected Term | 5 years | ||||||||||
Warrants [Member] | |||||||||||
NOTE 8 - EQUITY (Details) [Line Items] | |||||||||||
Share-based Compensation | $ 34,265 | $ 42,795 |
NOTE 8 - EQUITY (Details) - Sc
NOTE 8 - EQUITY (Details) - Schedule of Share-based Compensation, Stock Options, Activity - USD ($) | Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Share-based Compensation, Stock Options, Activity [Abstract] | |||
Number of Options Outstanding | 183,576 | 143,576 | |
Options Outstanding, Average Exercise Price | $ 4.49 | $ 3.76 | |
Options Outstanding, Average Remaining Contractual Term | 2 years 255 days | 2 years | 1 year 219 days |
Options Outstanding, Aggregate Intrinsic Value | $ 0 | $ 0 | |
Number of Options granted | 0 | 0 | |
Options Granted, Average Exercise Price | $ 0 | $ 0 | |
Options Canceled/forfeited, Average Exercise Price | (81,296) | (40,000) | |
Options Canceled/forfeited, Average Remaining Contractual Term | $ 4.80 | $ 4.50 | |
Number of Options Outstanding | 62,280 | 143,576 | |
Options Outstanding, Average Exercise Price | $ 3.78 | $ 3.76 | |
Options Outstanding, Aggregate Intrinsic Value | $ 0 | $ 0 | |
Number of Options Vested | 34,640 | 103,575 | |
Options Vested, Average Exercise Price | $ 3.61 | $ 4.47 | |
Options Vested, Average Remaining Contractual Term | 1 year 292 days | 1 year | |
Options Vested, Aggregate Intrinsic Value | $ 0 | $ 0 |
NOTE 8 - EQUITY (Details) - 45
NOTE 8 - EQUITY (Details) - Schedule of Stockholders' Equity Note, Warrants or Rights - $ / shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Stockholders' Equity Note, Warrants or Rights [Abstract] | ||
Warrants Outstanding and Exercisable | 203,253 | 203,253 |
Warrants Outstanding and Exercisable, Weighted Average Exercise Price | $ 5.29 | $ 5.29 |
Warrants Granted | 4,988 | 0 |
Warrants Granted, Weighted Average Exercise Price | $ 4.01 | $ 0 |
Warrants Exercised | 0 | 0 |
Warrants Exercised, Weighted Average Exercise Price | $ 0 | $ 0 |
Warrants Canceled | 0 | 0 |
Warrants Canceled, Weighted Average Exercise Price | $ 0 | $ 0 |
Warrants Outstanding and Exercisable | 208,241 | 203,253 |
Warrants Outstanding and Exercisable, Weighted Average Exercise Price | $ 5.26 | $ 5.29 |
NOTE 9 - INCOME TAXES (Details)
NOTE 9 - INCOME TAXES (Details) - USD ($) | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
NOTE 9 - INCOME TAXES (Details) [Line Items] | |||
Operating Loss Carryforwards | $ 6,849,000 | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 34.00% | 34.00% | |
Other Tax Expense (Benefit) | $ (1,394,031) | ||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 0 | $ 2,563,637 | |
Domestic Tax Authority [Member] | |||
NOTE 9 - INCOME TAXES (Details) [Line Items] | |||
Other Tax Expense (Benefit) | $ (934,000) | ||
Minimum [Member] | |||
NOTE 9 - INCOME TAXES (Details) [Line Items] | |||
Operating Loss Carryforwards, Expiration Date | 2,024 | ||
Maximum [Member] | |||
NOTE 9 - INCOME TAXES (Details) [Line Items] | |||
Operating Loss Carryforwards, Expiration Date | 2,034 | ||
Subsequent Event [Member] | Domestic Tax Authority [Member] | |||
NOTE 9 - INCOME TAXES (Details) [Line Items] | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% |
NOTE 9 - INCOME TAXES (Details
NOTE 9 - INCOME TAXES (Details) - Schedule of Deferred Tax Assets and Liabilities - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Net operating loss carry forwards | $ 1,745,000 | $ 2,660,000 |
Long lived assets | 285,000 | 355,000 |
Share based payments | 13,000 | 8,000 |
Allowance for doubtful accounts | 118,000 | 150,000 |
Other | 15,000 | 11,000 |
Deferred tax asset | 2,176,000 | 3,184,000 |
Deferred tax liabilities: | ||
Long lived assets | (179,000) | (179,000) |
Deferred tax liabilities | (179,000) | (179,000) |
Net deferred tax asset | 1,997,000 | 3,005,000 |
Less: Valuation allowance | (634,000) | (590,098) |
Net deferred tax asset | $ 1,363,000 | $ 2,414,902 |
NOTE 9 - INCOME TAXES (Detai48
NOTE 9 - INCOME TAXES (Details) - Schedule of Effective Income Tax Rate Reconciliation | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Effective Income Tax Rate Reconciliation [Abstract] | ||
Federal income tax rate | 34.00% | 34.00% |
State income tax, net of federal benefit | 10.00% | 5.00% |
Permanent differences | 4.00% | 6.00% |
Prior year adjustments | (20.00%) | |
48.00% | 25.00% | |
Change in tax rates | 103.00% | 0.00% |
Change in valuation allowance | 2.00% | (208.00%) |
Effective income tax rate | 153.00% | (183.00%) |
NOTE 9 - INCOME TAXES (Detai49
NOTE 9 - INCOME TAXES (Details) - Schedule of Components of Income Tax Expense (Benefit) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Current: | ||
Federal | $ 183,546 | $ (108,832) |
State and local | 158,583 | 100,000 |
Total current tax provision (benefit) | 342,129 | (8,832) |
Deferred: | ||
Federal | 1,159,502 | 334,786 |
State and local | (107,600) | 13,949 |
Release of valuation allowance | 0 | (2,563,637) |
Total deferred tax provision (benefit) | 1,051,902 | (2,214,902) |
Total provision (benefit) | $ 1,394,031 | $ (2,223,734) |
NOTE 10 - RELATED PARTY TRANS50
NOTE 10 - RELATED PARTY TRANSACTIONS (Details) - Building [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
North Syracuse, New York [Member] | ||
NOTE 10 - RELATED PARTY TRANSACTIONS (Details) [Line Items] | ||
Operating Leases, Rent Expense, Minimum Rentals | $ 2,100 | |
Operating Leases, Rent Expense | $ 25,200 | $ 25,200 |
Seattle, WA [Member] | ||
NOTE 10 - RELATED PARTY TRANSACTIONS (Details) [Line Items] | ||
Lease Expiration Date | Sep. 30, 2018 | |
Operating Leases, Rent Expense, Minimum Rentals | $ 3,000 | |
Operating Leases, Rent Expense | $ 37,358 | $ 36,270 |
Chief Financial Officer [Member] | North Syracuse, New York [Member] | ||
NOTE 10 - RELATED PARTY TRANSACTIONS (Details) [Line Items] | ||
Lease Expiration Date | May 31, 2018 | |
Operating Leases, Rent Expense, Minimum Rentals | $ 2,100 | |
Affiliated Entity [Member] | Seattle, WA [Member] | ||
NOTE 10 - RELATED PARTY TRANSACTIONS (Details) [Line Items] | ||
Operating Leases, Rent Expense, Minimum Rentals | $ 3,090 | |
Operating Leases, Rent Expense, Yearly Increase in Minimum Rentals | 3.00% |
NOTE 12 - COMMITMENTS (Details)
NOTE 12 - COMMITMENTS (Details) | Feb. 04, 2016USD ($) | Oct. 01, 2015USD ($) | Mar. 31, 2017USD ($) | Sep. 10, 2017USD ($)ft² | Dec. 31, 2017USD ($)ft² | Dec. 31, 2016USD ($)ft² | Sep. 30, 2017ft² |
Chief Executive Officer [Member] | Employment Agreement [Member] | |||||||
NOTE 12 - COMMITMENTS (Details) [Line Items] | |||||||
Employment Agreement, Description | The term of the Meller Employment Agreement is for an additional 7 years through September of 2023 (the “Term”) and shall automatically renew for additional periods of one year unless otherwise terminated in accordance with the employment agreement | ||||||
Officers' Compensation | $ 565,000 | ||||||
Increase in Base Salary Year Over Year, Percentage | 10.00% | ||||||
Other Commitments, Description | The Meller Employment Agreement provides for a severance payment to Mr. Meller of three hundred percent (300%), less $100,000 of his gross income for services rendered to the Company in each of the five prior calendar years should his employment be terminated following a change in control (as defined in the Meller Employment Agreement). | ||||||
The Macabe Associates, Inc. (Macabe) [Member] | |||||||
NOTE 12 - COMMITMENTS (Details) [Line Items] | |||||||
Operating Leases, Rent Expense | $ 412,272 | $ 365,205 | |||||
Payments to Acquire Businesses, Gross | $ 21,423 | ||||||
Business Combination, Contingent Consideration Arrangements, Description | Additionally, the Company is obligated to 35% of the net margin on software maintenance renewals for former Macabe customers for the first twelve months, and then 30%, 25% and 20% of the net margin on software maintenance renewals for the following three years. The Company is obligated to pay 50% the first year, and 40%, 30% and 20% the three years after on the net margin on EASY Solution Maintenance, new software and license to existing Macabe customers and EASY Solutions software and maintenance sales to new customers. On any former Macabe customers migrating to Netsuite, X3 or Acumatica, the Company is obligated to pay 50% of the net margin of the sale after applicable costs and commissions for the three years period after the acquisition. | ||||||
Business Combination, Contingent Consideration, Liability | $ 417,971 | $ 105,635 | |||||
Building [Member] | |||||||
NOTE 12 - COMMITMENTS (Details) [Line Items] | |||||||
Lessee, Operating Lease, Term of Contract | 2 months | ||||||
Building [Member] | Livingston, New Jersey [Member] | |||||||
NOTE 12 - COMMITMENTS (Details) [Line Items] | |||||||
Area of Real Estate Property (in Square Feet) | ft² | 6,986 | ||||||
Operating Leases, Rent Expense, Minimum Rentals | $ 7,400 | ||||||
Lease Expiration Date | Dec. 31, 2016 | ||||||
Building [Member] | East Hanover, NJ [Member] | |||||||
NOTE 12 - COMMITMENTS (Details) [Line Items] | |||||||
Area of Real Estate Property (in Square Feet) | ft² | 5,129 | 1,870 | |||||
Operating Leases, Rent Expense, Minimum Rentals | $ 8,762 | ||||||
Lease Expiration Date | Apr. 30, 2024 | ||||||
Lessee, Operating Lease, Term of Contract | 1 year | ||||||
Building [Member] | North Syracuse, New York [Member] | |||||||
NOTE 12 - COMMITMENTS (Details) [Line Items] | |||||||
Operating Leases, Rent Expense, Minimum Rentals | $ 2,100 | ||||||
Operating Leases, Rent Expense | $ 25,200 | 25,200 | |||||
Building [Member] | Skokie, Illinois [Member] | |||||||
NOTE 12 - COMMITMENTS (Details) [Line Items] | |||||||
Area of Real Estate Property (in Square Feet) | ft² | 2,700 | ||||||
Operating Leases, Rent Expense, Minimum Rentals | $ 3,000 | ||||||
Lease Expiration Date | Apr. 30, 2018 | ||||||
Building [Member] | Minneapolis, Minnesota [Member] | |||||||
NOTE 12 - COMMITMENTS (Details) [Line Items] | |||||||
Area of Real Estate Property (in Square Feet) | ft² | 702 | ||||||
Operating Leases, Rent Expense, Minimum Rentals | $ 1,515 | $ 1,560 | |||||
Lease Expiration Date | Mar. 31, 2017 | ||||||
Building [Member] | Phoenix, AZ [Member] | |||||||
NOTE 12 - COMMITMENTS (Details) [Line Items] | |||||||
Area of Real Estate Property (in Square Feet) | ft² | 2,105 | ||||||
Lease Expiration Date | Sep. 30, 2019 | ||||||
Building [Member] | Seattle, WA [Member] | |||||||
NOTE 12 - COMMITMENTS (Details) [Line Items] | |||||||
Area of Real Estate Property (in Square Feet) | ft² | 1,500 | ||||||
Operating Leases, Rent Expense, Minimum Rentals | $ 3,000 | ||||||
Lease Expiration Date | Sep. 30, 2018 | ||||||
Operating Leases, Rent Expense | $ 37,358 | $ 36,270 | |||||
Building [Member] | Spartanburg, SC [Member] | |||||||
NOTE 12 - COMMITMENTS (Details) [Line Items] | |||||||
Area of Real Estate Property (in Square Feet) | ft² | 383 | ||||||
Operating Leases, Rent Expense, Minimum Rentals | $ 450 | ||||||
Building [Member] | Greensboro, NC [Member] | |||||||
NOTE 12 - COMMITMENTS (Details) [Line Items] | |||||||
Area of Real Estate Property (in Square Feet) | ft² | 2,267 | 3,422 | |||||
Operating Leases, Rent Expense, Minimum Rentals | $ 2,765 | $ 4,182 | |||||
Lease Expiration Date | Feb. 28, 2020 | ||||||
Building [Member] | Santa Ana, CA [Member] | |||||||
NOTE 12 - COMMITMENTS (Details) [Line Items] | |||||||
Area of Real Estate Property (in Square Feet) | ft² | 1,745 | ||||||
Lease Expiration Date | Apr. 30, 2018 | ||||||
Building [Member] | Thorofare, NJ [Member] | |||||||
NOTE 12 - COMMITMENTS (Details) [Line Items] | |||||||
Area of Real Estate Property (in Square Feet) | ft² | 6,115 | ||||||
Operating Leases, Rent Expense, Minimum Rentals | $ 4,591 | ||||||
Building [Member] | Minimum [Member] | Phoenix, AZ [Member] | |||||||
NOTE 12 - COMMITMENTS (Details) [Line Items] | |||||||
Operating Leases, Rent Expense, Minimum Rentals | 1,271 | ||||||
Building [Member] | Minimum [Member] | Santa Ana, CA [Member] | |||||||
NOTE 12 - COMMITMENTS (Details) [Line Items] | |||||||
Operating Leases, Rent Expense, Minimum Rentals | 3,225 | ||||||
Building [Member] | Maximum [Member] | Phoenix, AZ [Member] | |||||||
NOTE 12 - COMMITMENTS (Details) [Line Items] | |||||||
Operating Leases, Rent Expense, Minimum Rentals | 2,894 | ||||||
Building [Member] | Maximum [Member] | Santa Ana, CA [Member] | |||||||
NOTE 12 - COMMITMENTS (Details) [Line Items] | |||||||
Operating Leases, Rent Expense, Minimum Rentals | 3,402 | ||||||
Escalating Rent Expense [Member] | Building [Member] | East Hanover, NJ [Member] | |||||||
NOTE 12 - COMMITMENTS (Details) [Line Items] | |||||||
Operating Leases, Rent Expense, Minimum Rentals | $ 10,044 | 3,506 | |||||
Escalating Rent Expense [Member] | Building [Member] | Seattle, WA [Member] | |||||||
NOTE 12 - COMMITMENTS (Details) [Line Items] | |||||||
Operating Leases, Rent Expense, Minimum Rentals | 3,183 | ||||||
Escalating Rent Expense [Member] | Building [Member] | Thorofare, NJ [Member] | |||||||
NOTE 12 - COMMITMENTS (Details) [Line Items] | |||||||
Operating Leases, Rent Expense, Minimum Rentals | $ 5,168 |
NOTE 12 - COMMITMENTS (Details
NOTE 12 - COMMITMENTS (Details) - Schedule of Future Minimum Rental Payments for Operating Leases | Dec. 31, 2017USD ($) |
Schedule of Future Minimum Rental Payments for Operating Leases [Abstract] | |
2,018 | $ 329,773 |
2,019 | 228,671 |
2,020 | 177,763 |
2,021 | 176,258 |
2,022 | 127,447 |
Thereafter | 159,854 |
$ 1,199,766 |
NOTE 13 - SUBSEQUENT EVENTS (De
NOTE 13 - SUBSEQUENT EVENTS (Details) | Feb. 08, 2018USD ($)$ / sharesshares | Jan. 18, 2018USD ($)shares | Jan. 27, 2017 | Dec. 31, 2017USD ($) |
NOTE 13 - SUBSEQUENT EVENTS (Details) [Line Items] | ||||
Number of Employees | 125 | |||
Stock Issued During Period, Value, Issued for Services | $ 47,500 | |||
Subsequent Event [Member] | ||||
NOTE 13 - SUBSEQUENT EVENTS (Details) [Line Items] | ||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | shares | 100 | |||
Number of Employees | 10 | |||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | $ 3,830 | |||
Stock Issued During Period, Shares, Issued for Services | shares | 4,825 | |||
Shares Issued, Price Per Share | $ / shares | $ 3.70 | |||
Stock Issued During Period, Value, Issued for Services | $ 17,853 |