Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 26, 2019 | Jun. 30, 2018 | |
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 | 4,500,755 | ||
Entity Public Float | $ 7,177,276 | ||
Amendment Flag | false | ||
Entity Central Index Key | 0001236275 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Ex Transition Period | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash | $ 1,900,857 | $ 2,235,347 |
Accounts receivable, net of allowance of $375,000 | 2,378,144 | 2,336,481 |
Unbilled services | 172,447 | 428,208 |
Prepaid expenses and other current assets | 434,307 | 403,911 |
Total current assets | 4,885,755 | 5,403,947 |
Property and equipment, net | 688,122 | 567,532 |
Intangible assets, net | 3,953,662 | 2,640,457 |
Goodwill | 885,000 | 401,000 |
Deferred tax assets | 1,292,055 | 1,363,000 |
Deposits and other assets | 39,791 | 36,312 |
Total assets | 11,744,385 | 10,412,248 |
Current liabilities: | ||
Bank line of credit | 0 | 0 |
Accounts payable | 2,028,218 | 2,094,297 |
Accrued expenses | 1,785,306 | 1,071,515 |
Accrued interest | 14,628 | 16,283 |
Income taxes payable | 20,000 | 97,097 |
Contingent consideration, related party – current portion | 22,548 | 63,380 |
Long term debt, related party – current portion | 426,350 | 257,846 |
Capital lease obligations – current portion | 87,355 | 94,443 |
Deferred revenue | 1,848,821 | 2,150,771 |
Total current liabilities | 6,233,226 | 5,845,632 |
Contingent consideration, related party - net of current portion | 0 | 42,255 |
Long term debt, related party - net of current portion | 1,068,487 | 228,626 |
Capital lease obligations - net of current portion | 108,512 | 68,614 |
Total liabilities | 7,410,225 | 6,185,127 |
Commitments and Contingencies | ||
Stockholders’ equity: | ||
Common stock, value | 46 | 46 |
Additional paid-in capital | 11,763,923 | 11,919,316 |
Accumulated deficit | (7,429,810) | (7,692,242) |
Total stockholders’ equity | 4,334,160 | 4,227,121 |
Total liabilities and stockholders’ equity | 11,744,385 | 10,412,248 |
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, 2018 | Dec. 31, 2017 |
Accounts receivable, allowance (in Dollars) | $ 375,000 | $ 375,000 |
Par value (in Dollars per share) | $ 0.00001 | $ 0.00001 |
Authorized | 75,000,000 | 75,000,000 |
Issued | 4,500,755 | 4,489,903 |
Outstanding | 4,500,755 | 4,489,903 |
Series A Preferred Stock [Member] | ||
Preferred stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, authorized | 2 | 2 |
Preferred stock, issued | 0 | 0 |
Preferred stock, outstanding | 0 | 0 |
Series B Preferred Stock [Member] | ||
Preferred stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, authorized | 1 | 1 |
Preferred stock, issued | 1 | 1 |
Preferred stock, outstanding | 1 | 1 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues: | ||
Revenues | $ 41,000,312 | $ 34,852,028 |
Cost of revenues: | ||
Cost of revenues | 24,079,908 | 20,986,588 |
Gross profit | 16,920,404 | 13,865,440 |
Operating expenses: | ||
Selling and marketing expenses | 6,752,052 | 4,849,996 |
General and administrative expenses | 8,979,202 | 7,354,201 |
Share-based compensation | 73,305 | 101,688 |
Depreciation and amortization | 703,085 | 620,297 |
Total operating expenses | 16,507,644 | 12,926,182 |
Income from operations | 412,760 | 939,258 |
Other (expense) income: | ||
Interest expense, net | (41,682) | (31,696) |
Total other (expense) income | (41,682) | (31,696) |
Income before income taxes | 371,078 | 907,562 |
Income tax provision | (108,646) | (1,394,031) |
Net income (loss) | $ 262,432 | $ (486,469) |
Basic and diluted net income (loss) per common share | ||
Basic (in Dollars per share) | $ 0.06 | $ (0.11) |
Diluted (in Dollars per share) | $ 0.06 | $ (0.11) |
Weighted average shares outstanding: | ||
Basic (in Shares) | 4,499,559 | 4,489,013 |
Diluted (in Shares) | 4,706,487 | 4,489,013 |
Product [Member] | ||
Revenues: | ||
Revenues | $ 6,196,674 | $ 5,275,266 |
Cost of revenues: | ||
Cost of revenues | 3,332,885 | 2,599,876 |
Service Net [Member] | ||
Revenues: | ||
Revenues | 34,803,638 | 29,576,762 |
Cost of revenues: | ||
Cost of revenues | $ 20,747,023 | $ 18,386,712 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) | 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, 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 | |||
Issuance of common stock for services | 45,306 | 45,306 | |||
Issuance of common stock for services (in Shares) | 11,852 | ||||
Treasury stock | (3,661) | (3,661) | |||
Treasury stock (in Shares) | (1,000) | ||||
Cash dividend | (225,038) | (225,038) | |||
Share-Based Compensation | 28,000 | 28,000 | |||
Net income (loss) | 262,432 | 262,432 | |||
Balance at Dec. 31, 2018 | $ 1 | $ 46 | $ 11,763,923 | $ (7,429,810) | $ 4,334,160 |
Balance (in Shares) at Dec. 31, 2018 | 1 | 4,500,755 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 262,432 | $ (486,469) |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Deferred income taxes | 70,945 | 1,051,902 |
Depreciation and amortization | 326,285 | 255,362 |
Amortization of intangibles | 376,800 | 364,934 |
Bad debt write-off expense | 96,026 | 44,147 |
Share-based compensation | 28,000 | 34,265 |
Common stock issued in exchange for services | 45,306 | 47,500 |
Stock warrants in exchange for services | 0 | 19,923 |
Changes in certain assets and liabilities: | ||
Accounts receivable | (137,687) | 120,993 |
Unbilled services | 255,761 | 35,355 |
Prepaid expenses and other current assets | (77,439) | (72,817) |
Deposits and other assets | 3,757 | (7,425) |
Accounts payable | (66,078) | 272,226 |
Accrued expenses | 488,753 | 247,924 |
Income tax payable | (77,097) | (80,369) |
Accrued interest | 750 | 750 |
Deferred revenues | (301,950) | 460,624 |
Net cash provided by operating activities | 1,294,564 | 2,308,825 |
Cash flows from investing activities: | ||
Software development costs | (617,545) | (514,280) |
Acquisition of customer list | 0 | (60,000) |
Acquisition of business | (300,000) | 0 |
Purchases of property and equipment | (146,001) | (241,230) |
Net cash used in investing activities | (1,063,546) | (815,510) |
Cash flows from financing activities: | ||
Payment of cash dividend | 0 | (359,014) |
Payment for repurchase of common stock | (3,661) | 0 |
Repayment of contingent consideration | (83,087) | (106,079) |
Repayments of long term debt | (346,997) | (306,678) |
Principal payment under capital lease obligations | (131,763) | (107,246) |
Net cash used in financing activities | (565,508) | (879,017) |
Net (decrease) increase in cash | (334,490) | 614,298 |
Cash, beginning of year | 2,235,347 | 1,621,049 |
Cash, end of year | 1,900,857 | 2,235,347 |
Income taxes | 217,210 | 335,398 |
Interest | $ 43,337 | $ 30,946 |
SUPPLEMENTAL SCHEDULE OF NON-CA
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | 12 Months Ended |
Dec. 31, 2018 | |
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, 201 8 : On March 31, 2018, the remaining principal and accrued interest on the note payable to Oates & Company, LLC. was offset against a related party receivable of $47,043. The Company acquired certain assets of Info Management Systems, Inc. (“ISM”) for a $1,000,000 promissory note in addition to a cash payment of $300,000 and the assumption of certain capital lease obligations of approximately $25,734 (see Note 9). The Company acquired certain assets of Nellnube, Inc (“NNB”) for a $400,000 promissory note and the assumption of certain capital lease obligations of approximately $57,964 (see Note 9). On December 24, 2018, the Company announced the payment of a $0.05 special cash dividend per share of Common Stock payable on January 14, 2019 for an aggregate amount of $225,038, which was applied against paid in capital. The Company incurred approximately $80,875 in capital lease obligations for purchases of equipment. For the Year Ended December 31, 201 7 : The Company incurred approximately $115,462 in capital lease obligations for purchases of equipment. |
NOTE 1 - DESCRIPTION OF BUSINES
NOTE 1 - DESCRIPTION OF BUSINESS | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Text Block [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | NOTE 1 – DESCRIPTION OF BUSINESS SilverSun Technologies, Inc. (“SilverSun”) through our wholly owned subsidiaries SWK Technologies, Inc. (“SWK”), Secure Cloud Services, Inc. (“SCS”), Critical Cyber Defense Corp. (“CCD”) together with SilverSun, (the “Company”) is a value-added reseller and master developer for Sage Software’s Sage100/500 and Sage EM (formerly Sage ERP X3) financial and accounting software as well as the publisher of proprietary software solutions, including its own 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 Market Place (“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”. In May 2018, the Company formed a wholly owned subsidiary, Secure Cloud Services, Inc. (“SCS”), a Nevada corporation, for the purpose of providing application hosting services. In May 2018, the Company completed the purchase of selected assets and assumed certain liabilities of Info Sys Management, Inc. (“ISM”), an Oregon based reseller of Sage Software and Acumatica applications. ISM’s customers and business products and services have been integrated into the infrastructure of SWK (see Note 9). In May 2018, the Company completed the purchase of selected assets and assumed certain liabilities of Nellnube, Inc. (“NNB”), an Oregon based application hosting provider. NNB’s customers and business products and services have been integrated into the infrastructure of SCS (see Note 9). In May 2018, the Company formed a wholly owned subsidiary, Critical Cyber Defense Corp. (“CCD”), a Nevada corporation, for the purpose of providing cyber defense products and services. |
NOTE 2 - SUMMARY OF SIGNIFICANT
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements include the accounts of the “Company” and its wholly-owned subsidiaries. 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 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 for the years ended December 31, 2018 and 2017. Capitalization of proprietary developed software Software development costs are accounted for in accordance with ASC 985-20, Software — Costs of Software to be Sold, Leased or Marketed 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, 2018 and 2017. Revenue Recognition In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers: Topic 606 Topic 606 was effective as of January 1, 2018 using either of two methods: (1) retrospective application of Topic 606 to each prior reporting period presented with the option to elect certain practical expedients as defined within Topic 606 or (2) retrospective application of Topic 606 with the cumulative effect of initially applying Topic 606 recognized at the date of initial application and providing certain additional disclosures as defined per Topic 606. The Company adopted Topic 606 pursuant to the method (2) and it determined that any cumulative effect for the initial application did not require an adjustment to retained earnings at January 1, 2018. With the adoption of ASC 606, the Company has elected the significant financing component practical expedient. In determining the transaction price, the Company does not adjust the promised amount of consideration for the effects of a significant financing component as the Company expects, at contract inception, that the period between when the entity transfers a promised good or service to a customer and when the customer pays for that good or service will be one year or less. Software product revenue is recognized when the product is delivered to the customer and the Company’s performance obligation is fulfilled. Service revenue is recognized when the professional consulting, maintenance or other ancillary services are provided to the customer. Shipping and handling costs charged to customers are classified as revenue, and the shipping and handling costs incurred are included in cost of sales. For the years ended December 31, 2018 and 2017 the professional consulting service revenue was $14,777,150 and $13,074,353 respectively. For the years ended December 31, 2018 and 2017 the maintenance revenue was $10,797,343 and $8,587,940 respectively. For the years ended December 31, 2018 and 2017 the ancillary service revenue was $9,229,145 and $7,914,469 respectively. Unbilled Services The Company recognizes revenue on its professional services as those services are performed. Unbilled services represent the revenue recognized but not yet invoiced. Deferred Revenues Deferred revenues consist of maintenance on proprietary products, customer telephone support services 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. As of December 31, 2018, there was $444,498 in deferred maintenance, $149,549 in deferred support services, and $1,254,774 in deposits for future consulting services. As of December 31, 2017, there was $452,773 in deferred maintenance, $207,911 in deferred support services, and $1,490,087 in deposits for future consulting services. 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, 2018, the Company had cash on deposit of approximately $1,473,286 in excess of the federally insured limits of $250,000. For the years ended December 31, 2018 and 2017, the top ten customers accounted for 17% ($7,173,499) and 21% ($7,461,570), respectively, of total revenues. The Company does not rely on any one specific customer for any significant portion of its revenue base. As of December 31, 2018 and 2017, no one customer represented more than 10% of the total accounts receivable and unbilled services. For both the years ended December 31, 2018 and 2017, purchases from one supplier through a “channel partner” agreement were approximately 22% and 23% 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, 2018 and 2017, one supplier represented approximately 40% and 37% 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, 2018, 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 primarily 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 and the customer’s current ability to pay its obligations. Accounts are written off against the allowance when deemed uncollectable. 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. Based on ASU 2015-17, all deferred tax assets or liabilities are classified as long-term. 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 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 2018 remain open to examination for both the U.S. federal and state jurisdictions. There were no liabilities for uncertain tax positions at December 31, 2018 and 2017. 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, contingent consideration and debt obligations approximate fair value as their stated interest rates approximate the rates currently available. The Company’s goodwill and intangibles are measured at fair-value on a non-recurring basis using Level 3 inputs, as discussed in Note 5 and 9. 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 May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers: Topic 606 Recent Authoritative Pronouncements In February 2016, the FASB established Topic 842, Leases, by issuing Accounting Standards Update (ASU) No. 2016-02, which requires lessees to recognize leases on-balance sheet and disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842; ASU No. 2018-10, Codification Improvements to Topic 842, Leases; and ASU No. 2018-11, Targeted Improvements. The new standard establishes a right-of-use model (ROU) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. The new standard is effective on January 1, 2019. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. If an entity chooses the second option, the transition requirements for existing leases also apply to leases entered into between the date of initial application and the effective date. The entity must also recast its comparative period financial statements and provide the disclosures required by the new standard for the comparative periods. The Company adopted the new standard on January 1, 2019 and use the effective date as the date of initial application. Consequently, financial information will not be updated and the disclosures required under the new standard will not be provided for dates and periods before January 1, 2019. The new standard provides a number of optional practical expedients in transition. The Company elects the ‘package of practical expedients’, which permits the Company not to reassess under the new standard prior conclusions about lease identification, lease classification and initial direct costs. The Company determined that this standard will have a material effect on the Company’s financial statements. While the Company continues to assess all of the effects of adoption, the Company currently believes the most significant effects relate to the recognition of new ROU assets and lease liabilities on the Company’s balance sheet for the Company’s real estate operating leases. On adoption, the Company currently will recognize additional operating liabilities of approximately $911,000, with corresponding ROU assets of the same amount based on the present value of the remaining minimum rental payments under current leasing standards for existing operating leases. In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other (Topic 350), which includes provisions, intended to simplify the test for goodwill impairment. The standard is effective for annual periods beginning after December 15, 2019, with early adoption permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company does not expect the adoption of this standard to have a significant impact on its financial position and results of operations. In June 2018, the FASB, issued ASU No. 2018-07 to simplify the accounting for share-based payments to nonemployees by aligning it with the accounting for share-based payments to employees, with certain exceptions. The new guidance expands the scope of Accounting Standards Codification, or ASC, 718 to include share-based payments granted to nonemployees in exchange for goods or services used or consumed in an entity’s own operations and supersedes the guidance in ASC 505-50. The guidance is effective for public business entities in annual periods beginning after December 15, 2018, and interim periods within those annual periods. Early adoption is permitted, including in an interim period for which financial statements have not been issued, but not before an entity adopts ASC 606. This was adopted on January 1, 2019 and the Company does not expect this to have a material impact on the financial position and results of operations. 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, 2018 | |
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, 2018 does not include share equivalents as some warrants and options exceeded the average market price of the common stock. Options in the money under the treasury stock method and Convertible debt, based on if-converted method is included below. For the year ended December 31, 2017 all warrants and options are excluded as the Company is in a net loss position. Year Ended December 31, 2018 Year Ended December 31, 2017 Basic net income (loss) per share: Net income (loss) $ 262,432 $ (486,469 ) Weighted-average common shares outstanding 4,499,559 4,489,013 Basic net income (loss) per shares $ 0.06 $ (0.11 ) Diluted net income (loss) per share: Net income (loss) per above $ 262,432 $ (486,469 ) Interest on convertible debt 13,444 - Net income (loss) $ 275,876 $ (486,469 ) Weighted-average common shares outstanding 4,499,559 4,489,013 Incremental shares for stock options 4,000 - Incremental shares for convertible promissory notes 202,928 - Total adjusted weighted-average shares 4,706,487 4,489,013 Diluted net income (loss) per share $ 0.06 $ (0.11 ) The following table summarizes securities that, if exercised, would have an anti-dilutive effect on earnings per share. Year Ended December 31, 201 8 Year Ended December 31, 201 7 Stock options 42,280 62,280 Warrants 208,241 208,241 Total potential dilutive securities not included in income (loss) per share 250,521 270,521 |
NOTE 4 - PROPERTY AND EQUIPMENT
NOTE 4 - PROPERTY AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2018 | |
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, 201 8 December 31, 201 7 Leasehold improvements $ 98,831 $ 88,511 Equipment, furniture and fixtures 2,479,732 2,043,177 2,578,563 2,131,688 Less: Accumulated depreciation and amortization (1,890,441 ) (1,564,156 ) Property and equipment, net $ 688,122 $ 567,532 Depreciation and amortization expense related to these assets for the years ended December 31, 2018 and 2017 was $326,285 and $255,362. Property and equipment under capital leases are summarized as follows: December 31, 2018 December 31, 2017 Equipment, furniture and fixtures 436,084 315,560 Less: Accumulated amortization (103,061 ) (126,478 ) Property and equipment, net $ 333,023 $ 189,082 |
NOTE 5 - GOODWILL AND INTANGIBL
NOTE 5 - GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | NOTE 5 – GOODWILL AND INTANGIBLE ASSETS The following table sets forth activity in goodwill. See Note 9 for details of acquisitions that occurred during the year ended December 31, 2018. Goodwill balance at December 31, 2017 $ 401,000 Acquisition of ISM 398,000 Acquisition of Nellnube 86,000 Goodwill balance at December 31, 2018 $ 885,000 Intangible assets consist of proprietary 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, 2018 December 31, 2017 Estimated Useful Lives Proprietary developed software $ 1,809,651 $ 1,192,109 5 – 7 Intellectual property, customer list, and acquired contracts 4,202,014 3,129,551 5 – 15 Total intangible assets $ 6,011,665 $ 4,321,660 Less: accumulated amortization (2,058,003 ) (1,681,203 ) $ 3,953,662 $ 2,640,457 Amortization expense related to the above intangible assets was $376,800 and $364,934, respectively, the years ended December 31, 2018 and 2017. Included in proprietary developed software is $303,361 not yet in service and accordingly no amortization was recorded. The Company expects the proprietary developed software to be placed in service in 2019, 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 2019 $ 546,720 2020 528,728 2021 492,178 2022 425,476 2023 362,363 thereafter 1,598,197 Total $ 3,953,662 |
NOTE 6 - LINE OF CREDIT AND LON
NOTE 6 - LINE OF CREDIT AND LONG TERM DEBT, RELATED PARTY | 12 Months Ended |
Dec. 31, 2018 | |
Line of Credit and Term Loan [Abstract] | |
Line of Credit and Term Loan [Text Block] | NOTE 6 – LINE OF CREDIT AND LONG TERM DEBT, RELATED PARTY On July 21, 2016, SWK entered into a Revolving Demand Note (the “MTB Revolving Demand Note”) by and between SWK and M&T Bank (“MTB Lender”), a commercial lender. The MTB Lender had agreed to loan SWK up to a principal amount of one million dollars. The interest rate on the MTB Revolving Demand Note was a variable rate, equal to the “Prime Rate”, plus ninety-five one-hundredths percent (0.95%) per annum. There was a minimum interest rate floor of four percent (4%). The MTB Revolving Demand Note was secured by all SWK’s assets pursuant to a Security Agreement. Furthermore, on July 21, 2016, the Company and its Chief Executive Officer, Mr. Mark Meller, individually, entered into Unlimited Guaranty agreements (the “Guaranty Agreements”) with the MTB Lender. The line was 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 SWK due and owing under the terms of the MTB Revolving Demand Note. The MTB Revolving Demand Note was cancelled and replaced with the note below in September 2018. At December 31, 2017 there were no borrowings under this note. On September 11, 2018, SWK entered into a Revolving Demand Note (the “JPM Revolving Demand Note”) by and between SWK and JPMorgan Chase Bank (“JPM Lender”), a commercial lender. The JPM Lender has agreed to loan SWK up to a principal amount of two million dollars. The interest rate on the JPM Revolving Demand Note shall be a variable rate, equal to the “Adjusted LIBOR Rate”, plus two and one quarter percent (2.25%) per annum (4.65% at December 31, 2018). The JPM Revolving Demand Note is secured by all of SWK’s assets pursuant to a Security Agreement. The line is also collateralized by substantially all of the assets of the Company. The JPM Revolving Demand Note expires August 31, 2019. At December 31, 2018 there were no borrowings under the JPM Revolving Note. 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, 2018 and December 31, 2017, the outstanding balance was $30,521 and $102,742, 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 matured on February 1, 2018 and was paid off on that date. At December 31, 2017, the outstanding balance on the ATR Note was $14,987. On July 6, 2015, SWK acquired certain assets of ProductiveTech Inc. (PTI) pursuant to an Asset Purchase Agreement for 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. Monthly payments including interest are $10,645. At December 31, 2018 and December 31, 2017, the outstanding balance on the PTI Note was $198,106 and $319,249, respectively. On October 19, 2015, SWK acquired certain assets of Oates & Company, LLC (Oates) pursuant to an Asset Purchase Agreement for cash of $125,000 and a promissory note for $175,000 (the “Oates Note”). The Oates Note is due three years from the closing date and bears interest at a rate of two (2%) percent. At December 31, 2017 the outstanding balance on the Oates Note was $49,494. On March 31, 2018, the remaining balance on the Oates Note was offset against a related party receivable of $47,043. On May 31, 2018, SWK acquired certain assets of Info Sys Management, Inc. (ISM) pursuant to an Asset Purchase Agreement for cash of $300,000 and a promissory note for $1,000,000 (the “ISM Note”). The ISM Note is due five years from the closing date and bears interest at a rate of two (2%) percent. Monthly payments including interest are $17,528. The ISM Note has an optional conversion feature where the Holder may, at its sole and exclusive option, elect to convert, at any time and from time to time, until payment in full of the ISM Note, all of the principal amount of the ISM Note, plus accrued interest, into shares (the “ Conversion Shares Common Stock On May 31, 2018, Secure Cloud Services acquired certain assets of Nellnube, Inc. (Nellnube) pursuant to an Asset Purchase Agreement for a promissory note for $400,000 (the “Nellnube Note”). The Nellnube Note is due five years from the closing date and bears interest at a rate of two (2%) percent. Monthly payments including interest are $7,011. The Nellnube Note has an optional conversion feature where the Holder may, at its sole and exclusive option, elect to convert, at any time and from time to time, until payment in full of the Nellnube Note, all of the principal amount of the Nellnube Note, plus accrued interest, into shares (the “ Conversion Shares Common Stock At December 31, 2018, future payments of promissory notes are as follows over each of the next five fiscal years: 2019 $ 426,350 2020 351,005 2021 282,699 2022 288,405 2023 146,378 Total $ 1,494,837 |
NOTE 7 - CAPITAL LEASE OBLIGATI
NOTE 7 - CAPITAL LEASE OBLIGATIONS | 12 Months Ended |
Dec. 31, 2018 | |
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 in property and equipment in the accompanying consolidated balance sheets. The related obligations are based upon the present value of the future minimum lease payments with interest rates ranging from 0.005% to 9.0%. At December 31, 2018, future payments under capital leases are as follows: 2019 $ 97,259 2020 70,147 2021 21,728 2022 19,920 2023 6,640 Total minimum lease payments 215,694 Less amounts representing interest (19,827 ) Present value of net minimum lease payments 195,867 Less current portion (87,355 ) Long-term capital lease obligation $ 108,512 |
NOTE 8 - EQUITY
NOTE 8 - EQUITY | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE 8 – EQUITY 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 . On January 18, 2018, the Company issued 100 shares of stock each to 10 non-executive employees of SWK valued at $3,830 based on the current market price at issuance date. On February 8, 2018 and March 23, 2018, the Company issued 4,825 and 5,115 shares of stock, respectively, in exchange for financial advisory services. The shares are based on the current market price at issuance date with a value of $17,852 and $20,204, respectively. On March 30, 2018, the Company issued 912 shares of stock for legal services valued at $3,420 based on the current market price at issuance date. On October 24, 2018, the Company cancelled an aggregate of 1,000 shares of stock previously issued on January 18, 2018 to ten (10) non-executive employees of SWK. This was in response to the Company’s non-compliance with Nasdaq Listing Rule 5365(c). Upon cancellation of such shares, the company regained compliance. On December 24, 2018, the Company announced the payment of a $0.05 special cash dividend per share of Common Stock. The dividend payments announced in December were paid out on January 14, 2019 for an aggregate amount of approximately $225,038, which was applied against additional paid in capital and included in accrued expenses at December 31, 2018. Options Total stock compensation recognized for the year ended December 31, 2018 and 2017 was $28,000 and $34,265, respectively. A summary of the status of the Company’s stock option plans for the fiscal years ended December 31, 2018 and 2017 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, 2017 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- Options granted - $ - Options canceled/forfeited (6,000 ) $ 4.00 Outstanding options at December 31, 2018 56,280 $ 3.75 1.0 years $ -0- Vested Options: December 31, 2018: 43,640 $ 3.70 0.9 years $ -0- December 31, 2017: 34,640 $ 3.61 1.8 years $ -0- As of December 31, 2018 the unamortized compensation expense for stock options was $28,203. Unamortized compensation expense is expected to be recognized over a weighted-average period of 1.6 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 Average Remaining Contractual Term Balance, January 1, 2017 203,253 $ 5.29 3.2 years Granted 4,988 $ 4.01 5.0 years Exercised - $ - Canceled - $ - Outstanding and Exercisable December 31, 2017 208,241 $ 5.26 2.3 years Granted - $ - Exercised - $ - Canceled - $ - Outstanding and Exercisable December 31, 2018 208,241 $ 5.26 1.3 years |
NOTE 9 - BUSINESS COMBINATION
NOTE 9 - BUSINESS COMBINATION | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | NOTE 9 – BUSINESS COMBINATION On May 31, 2018 SWK acquired certain assets of Info Sys Management, Inc. (“ISM”), a reseller of Sage and Acumatica software, pursuant to an Asset Purchase Agreement for a promissory note in the aggregate principal amount of $1,000,000 (“ISM Note”) and a cash payment of $300,000. The ISM Note is due May 31, 2023 and bears an interest rate of 2% per year. The monthly payments including interest are $17,528. The ISM Note has an optional conversion feature where the Holder may, at its sole and exclusive option, elect to convert, at any time and from time to time, until payment in full of the ISM Note, all of the principal amount of the ISM Note, plus accrued interest, into shares of the Company’s common stock at a price equal to $4.03. The allocation of the purchase price to customer lists with an estimated life of fifteen years, deposits and other assets, fixed assets and goodwill, which is deductible for tax purposes, has been based on an independent valuation summarized in the following table. On May 31, 2018 SCS acquired certain assets of Nellnube, Inc. (“Nellnube”), a business application hosting company, pursuant to an Asset Purchase Agreement for a promissory note (“Nellnube Note”) in the aggregate principal amount of $400,000. The Nellnube Note is due on May 31, 2023 and bears an interest rate of 2% per year. The monthly payments including interest are $7,011. The Nellnube Note has an optional conversion feature where the Holder may, at its sole and exclusive option, elect to convert, at any time and from time to time, until payment in full of the Nellnube Note, all of the principal amount of the Nellnube Note, plus accrued interest, into shares of the Company’s common stock at a price equal to $4.03. The allocation of the purchase price to customer lists with an estimated life of fifteen years, fixed assets and goodwill, which is deductible for tax purposes, has been based on an independent valuation summarized in the following table. The Company expects these acquisitions to create synergies by combining operations and expanding geographic market share and product offerings. The following summarizes the purchase price allocation for all current year’s acquisitions: ISM (Preliminary) Measurement Period Adjustments ISM Adjusted Cash consideration $ 300,000 $ - $ 300,000 Note payable 1,000,000 - 1,000,000 Total purchase price 1,300,000 $ - $ 1,300,000 Deposits and other assets $ 7,235 $ - $ 7,235 Property and equipment 170,000 - 170,000 Customer List 1,148,499 (398,000 ) 750,499 Goodwill - 398,000 398,000 Total assets acquired 1,325,734 - 1,325,734 Capital lease obligations (25,734 ) - (25,734 ) Liabilities acquired (25,734 ) - (25,734 ) Net assets acquired 1,300,000 $ - $ 1,300,000 Nellnube (Preliminary) Measurement Period Adjustments Nellnube Adjusted Cash consideration $ - $ - $ - Note payable 400,000 - 400,000 Total purchase price 400,000 $ - $ 400,000 Property and equipment $ 50,000 $ - $ 50,000 Customer List 407,964 (86,000 ) 321,964 Goodwill - 86,000 86,000 Total assets acquired 457,964 - 457,964 Capital lease obligations (57,964 ) - (57,964 ) Liabilities acquired (57,964 ) (57,964 ) Net assets acquired 400,000 $ - $ 400,000 The following unaudited pro forma information does not purport to present what the Company’s actual results would have been had the acquisitions occurred on January 1, 2017, nor is the financial information indicative of the results of future operations. The following table represents the unaudited consolidated pro forma results of operations for the year ended December 31, 2018 and 2017 as if the acquisition occurred on January 1, 2017. Operating expenses have been increased for the amortization expense associated with the estimated fair value adjustment as of December 31, 2018 of expected definite lived intangible assets and interest on the notes payable. Pro Forma Year Ended December 31, 2018 Year Ended December 31, 2017 Net revenues $ 42,873,990 $ 39,434,229 Cost of revenues 24,800,487 23,022,917 Operating expenses 17,573,000 15,382,825 Income before taxes 500,503 1,028,487 Net income (loss) $ 358,207 $ (410,286 ) Basic and diluted income (loss) per common share $ 0.08 $ (0.09 ) The Company’s consolidated financial statements for the year ended December 31, 2018 include the actual results of ISM and Nellnube since the date of acquisition, May 31, 2018. For the year ending December 31, 2017, there is $93,348 of amortization and interest expense included in the ISM/Nellnube pro-forma. For the year ending December 31, 2018, there is $38,896 of amortization and interest expense included in the ISM/Nellnube pro-forma five months results. For the year ended December 31, 2018, the ISM/Nellnube operations had a net income before taxes of $174,264 which represented seven months of operations that were included in the Company’s Consolidated Statement of Income. This consisted of approximately $1,859,424 in revenues, $701,600 in cost of revenues, and $983,559 in operating expenses. |
NOTE 10 - INCOME TAXES
NOTE 10 - INCOME TAXES | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | NOTE 10 – 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 $6,532,000 as of December 31, 2018, which is subject to limitations under Section 382 of the Internal Revenue Code. These carryforward losses are available to offset future taxable income, and begin to expire in the year 2024 to 2033. 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, 2018 2017 Deferred tax assets: Net operating loss carry forwards $ 1,734,577 $ 1,745,000 Long lived assets 265,478 285,000 Share based payments 13,000 13,000 Allowance for doubtful accounts 118,000 118,000 Other 15,000 15,000 Deferred tax asset 2,146,055 2,176,000 Deferred tax liabilities: Long lived assets (220,000 ) (179,000 ) Deferred tax liabilities (220,000 ) (179,000 ) Net deferred tax asset 1,926,055 1,997,000 Less: Valuation allowance (634,000 ) (634,000 ) Net deferred tax asset $ 1,292,055 1,363,000 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 and is based on information that was available to management at the time the consolidated financial statements were prepared. This initial assessment is subject to adjustment in future periods for factors including the completion of federal and state tax returns for 2018 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, 2018, ongoing IRS examinations and the additional time required to refine calculations. For the year ended December 31, 2018, 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 meals, 100% entertainment expense which are not tax deductible. The total provision for the year ended December 31, 2018 was $108,646. 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. A reconciliation of the statutory income tax rate to the effective rate is as follows for the period December 31, 2018 and 2017: December 31, December 31, 2018 2017 Federal income tax rate 21 % 34 % State income tax, net of federal benefit 8 % 10 % Permanent differences - % 4 % Change in tax rates - % 103 % Change in valuation allowance - % 2 % Effective income tax rate 29 % 153 % Income tax provision (benefit): Year Ended December 31, December 31, 2018 2017 Current: Federal $ - $ 183,546 State and local 37,701 158,583 Total current tax provision (benefit) 37,701 342,129 Deferred: Federal 63,850 1,159,502 State and local 7,095 (107,600 ) Total deferred tax provision (benefit) 70,945 1,051,902 Total provision (benefit) $ 108,646 1,394,031 |
NOTE 11 - RELATED PARTY TRANSAC
NOTE 11 - RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | NOTE 1 1 – RELATED PARTY TRANSACTIONS The Company leases its North Syracuse office space from its former CFO, Crandall Melvin III which expired on May 31, 2018 and was subsequently extended for a three-year period. The monthly rent for this office space is $2,300. Total rent paid for 2018 and 2017 was $26,600 and $25,200 respectively under this lease. The Company leased its Seattle office space from Mary Abdian, an employee of SWK, which expired September 30, 2018, however, this lease was terminated on May 31, 2018 by mutual consent. The monthly rent for this office space was $3,090 and increased 3% each year. Total rent paid for 2018 and 2017 was $15,915 and $37,358 respectively under this lease. As of December 31, 2018, long term debt and contingent consideration are considered related party liabilities as holders are current employees of the Company, see Note 6, 9, and 12. |
NOTE 12 - COMMITMENTS
NOTE 12 - COMMITMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 12 – COMMITMENTS Operating Leases The Company leases office space in ten different locations with monthly payments from $582 to $10,044 which expire at various dates through April 2024. Total rent expense under these operating leases for the year ended December 31, 2018 and 2017 was $417,205 and $412,272, respectively. The following is a schedule of approximate future minimum rental payments for operating leases subsequent to the year ended December 31, 2018. 2019 $ 369,561 2020 261,542 2021 196,680 2022 127,447 2023 119,677 Thereafter 40,177 $ 1,115,084 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 $22,548 as of December 31, 2018. 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, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | NOTE 1 3 – SUBSEQUENT EVENTS On January 2, 2019, the Company acquired certain assets of Partners in Technology, Inc (“PIT”) pursuant to an Asset Purchase Agreement. In consideration for the acquired assets, the Company paid $60,000 in cash and a promissory note in the principal amount of $174,000 (“PIT Note”). On February 11, 2019, Crandall Melvin III retired and Christine Dye was appointed as Chief Financial Officer of SilverSun Technologies, Inc. and its subsidiaries. Ms. Dye will receive an annual salary of $220,000 and is eligible for a discretionary bonus of up to 10% of her annual salary. On February 25, 2019, the Company signed a lease for 1,180 square feet of office space in Lisle, IL. The lease begins April 1, 2019 with a monthly rent of $1,942 escalating to $2,040 by the end of the lease term March 31, 2022. On March 4, 2019, a derivative lawsuit was filed in the Delaware Court of Chancery, by a purported stockholder of the Company against the members of the Company’s Board of Directors as of March 4, 2019 surrounding the Company’s capital structure. The complaint has named the Company as a nominal defendant. There was no certain amount of monetary damages sought in the complaint. The plaintiff seeks equitable and injunctive relief, and any other money damages, and costs and disbursements, and such other relief deemed just and proper, including specifically legal fees. The Board and the Company believes this lawsuit to be completely without merit and plan to vigorously defend such lawsuit, in addition to asking for other costs and relief that may be appropriate. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements include the accounts of the “Company” and its wholly-owned subsidiaries. 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 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 for the years ended December 31, 2018 and 2017. |
Software to be Sold, Leased, or Otherwise Marketed, Policy [Policy Text Block] | Capitalization of proprietary developed software Software development costs are accounted for in accordance with ASC 985-20, Software — Costs of Software to be Sold, Leased or Marketed |
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, 2018 and 2017. |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers: Topic 606 Topic 606 was effective as of January 1, 2018 using either of two methods: (1) retrospective application of Topic 606 to each prior reporting period presented with the option to elect certain practical expedients as defined within Topic 606 or (2) retrospective application of Topic 606 with the cumulative effect of initially applying Topic 606 recognized at the date of initial application and providing certain additional disclosures as defined per Topic 606. The Company adopted Topic 606 pursuant to the method (2) and it determined that any cumulative effect for the initial application did not require an adjustment to retained earnings at January 1, 2018. With the adoption of ASC 606, the Company has elected the significant financing component practical expedient. In determining the transaction price, the Company does not adjust the promised amount of consideration for the effects of a significant financing component as the Company expects, at contract inception, that the period between when the entity transfers a promised good or service to a customer and when the customer pays for that good or service will be one year or less. Software product revenue is recognized when the product is delivered to the customer and the Company’s performance obligation is fulfilled. Service revenue is recognized when the professional consulting, maintenance or other ancillary services are provided to the customer. Shipping and handling costs charged to customers are classified as revenue, and the shipping and handling costs incurred are included in cost of sales. For the years ended December 31, 2018 and 2017 the professional consulting service revenue was $14,777,150 and $13,074,353 respectively. For the years ended December 31, 2018 and 2017 the maintenance revenue was $10,797,343 and $8,587,940 respectively. For the years ended December 31, 2018 and 2017 the ancillary service revenue was $9,229,145 and $7,914,469 respectively. |
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. Unbilled services represent the revenue recognized but not yet invoiced. |
Revenue Recognition, Deferred Revenue [Policy Text Block] | Deferred Revenues Deferred revenues consist of maintenance on proprietary products, customer telephone support services 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. As of December 31, 2018, there was $444,498 in deferred maintenance, $149,549 in deferred support services, and $1,254,774 in deposits for future consulting services. As of December 31, 2017, there was $452,773 in deferred maintenance, $207,911 in deferred support services, and $1,490,087 in deposits for future consulting services. |
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, 2018, the Company had cash on deposit of approximately $1,473,286 in excess of the federally insured limits of $250,000. For the years ended December 31, 2018 and 2017, the top ten customers accounted for 17% ($7,173,499) and 21% ($7,461,570), respectively, of total revenues. The Company does not rely on any one specific customer for any significant portion of its revenue base. As of December 31, 2018 and 2017, no one customer represented more than 10% of the total accounts receivable and unbilled services. For both the years ended December 31, 2018 and 2017, purchases from one supplier through a “channel partner” agreement were approximately 22% and 23% 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, 2018 and 2017, one supplier represented approximately 40% and 37% 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, 2018, 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 primarily 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 and the customer’s current ability to pay its obligations. Accounts are written off against the allowance when deemed uncollectable. |
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. Based on ASU 2015-17, all deferred tax assets or liabilities are classified as long-term. 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 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 2018 remain open to examination for both the U.S. federal and state jurisdictions. There were no liabilities for uncertain tax positions at December 31, 2018 and 2017. |
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, contingent consideration and debt obligations approximate fair value as their stated interest rates approximate the rates currently available. The Company’s goodwill and intangibles are measured at fair-value on a non-recurring basis using Level 3 inputs, as discussed in Note 5 and 9. |
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 May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers: Topic 606 Recent Authoritative Pronouncements In February 2016, the FASB established Topic 842, Leases, by issuing Accounting Standards Update (ASU) No. 2016-02, which requires lessees to recognize leases on-balance sheet and disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842; ASU No. 2018-10, Codification Improvements to Topic 842, Leases; and ASU No. 2018-11, Targeted Improvements. The new standard establishes a right-of-use model (ROU) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. The new standard is effective on January 1, 2019. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. If an entity chooses the second option, the transition requirements for existing leases also apply to leases entered into between the date of initial application and the effective date. The entity must also recast its comparative period financial statements and provide the disclosures required by the new standard for the comparative periods. The Company adopted the new standard on January 1, 2019 and use the effective date as the date of initial application. Consequently, financial information will not be updated and the disclosures required under the new standard will not be provided for dates and periods before January 1, 2019. The new standard provides a number of optional practical expedients in transition. The Company elects the ‘package of practical expedients’, which permits the Company not to reassess under the new standard prior conclusions about lease identification, lease classification and initial direct costs. The Company determined that this standard will have a material effect on the Company’s financial statements. While the Company continues to assess all of the effects of adoption, the Company currently believes the most significant effects relate to the recognition of new ROU assets and lease liabilities on the Company’s balance sheet for the Company’s real estate operating leases. On adoption, the Company currently will recognize additional operating liabilities of approximately $911,000, with corresponding ROU assets of the same amount based on the present value of the remaining minimum rental payments under current leasing standards for existing operating leases. In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other (Topic 350), which includes provisions, intended to simplify the test for goodwill impairment. The standard is effective for annual periods beginning after December 15, 2019, with early adoption permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company does not expect the adoption of this standard to have a significant impact on its financial position and results of operations. In June 2018, the FASB, issued ASU No. 2018-07 to simplify the accounting for share-based payments to nonemployees by aligning it with the accounting for share-based payments to employees, with certain exceptions. The new guidance expands the scope of Accounting Standards Codification, or ASC, 718 to include share-based payments granted to nonemployees in exchange for goods or services used or consumed in an entity’s own operations and supersedes the guidance in ASC 505-50. The guidance is effective for public business entities in annual periods beginning after December 15, 2018, and interim periods within those annual periods. Early adoption is permitted, including in an interim period for which financial statements have not been issued, but not before an entity adopts ASC 606. This was adopted on January 1, 2019 and the Company does not expect this to have a material impact on the financial position and results of operations. 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 COMMO_2
NOTE 3 - NET INCOME PER COMMON SHARE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 does not include share equivalents as some warrants and options exceeded the average market price of the common stock. Options in the money under the treasury stock method and Convertible debt, based on if-converted method is included below. For the year ended December 31, 2017 all warrants and options are excluded as the Company is in a net loss position. Year Ended December 31, 2018 Year Ended December 31, 2017 Basic net income (loss) per share: Net income (loss) $ 262,432 $ (486,469 ) Weighted-average common shares outstanding 4,499,559 4,489,013 Basic net income (loss) per shares $ 0.06 $ (0.11 ) Diluted net income (loss) per share: Net income (loss) per above $ 262,432 $ (486,469 ) Interest on convertible debt 13,444 - Net income (loss) $ 275,876 $ (486,469 ) Weighted-average common shares outstanding 4,499,559 4,489,013 Incremental shares for stock options 4,000 - Incremental shares for convertible promissory notes 202,928 - Total adjusted weighted-average shares 4,706,487 4,489,013 Diluted net income (loss) per share $ 0.06 $ (0.11 ) |
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, 201 8 Year Ended December 31, 201 7 Stock options 42,280 62,280 Warrants 208,241 208,241 Total potential dilutive securities not included in income (loss) per share 250,521 270,521 |
NOTE 4 - PROPERTY AND EQUIPME_2
NOTE 4 - PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Property and equipment is summarized as follows: December 31, 201 8 December 31, 201 7 Leasehold improvements $ 98,831 $ 88,511 Equipment, furniture and fixtures 2,479,732 2,043,177 2,578,563 2,131,688 Less: Accumulated depreciation and amortization (1,890,441 ) (1,564,156 ) Property and equipment, net $ 688,122 $ 567,532 |
Schedule of Capital Leased Assets [Table Text Block] | Property and equipment under capital leases are summarized as follows: December 31, 2018 December 31, 2017 Equipment, furniture and fixtures 436,084 315,560 Less: Accumulated amortization (103,061 ) (126,478 ) Property and equipment, net $ 333,023 $ 189,082 |
NOTE 5 - GOODWILL AND INTANGI_2
NOTE 5 - GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill [Table Text Block] | The following table sets forth activity in goodwill. See Note 9 for details of acquisitions that occurred during the year ended December 31, 2018. Goodwill balance at December 31, 2017 $ 401,000 Acquisition of ISM 398,000 Acquisition of Nellnube 86,000 Goodwill balance at December 31, 2018 $ 885,000 |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | The components of intangible assets are as follows: December 31, 2018 December 31, 2017 Estimated Useful Lives Proprietary developed software $ 1,809,651 $ 1,192,109 5 – 7 Intellectual property, customer list, and acquired contracts 4,202,014 3,129,551 5 – 15 Total intangible assets $ 6,011,665 $ 4,321,660 Less: accumulated amortization (2,058,003 ) (1,681,203 ) $ 3,953,662 $ 2,640,457 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | The Company expects future amortization expense to be the following: Amortization 2019 $ 546,720 2020 528,728 2021 492,178 2022 425,476 2023 362,363 thereafter 1,598,197 Total $ 3,953,662 |
NOTE 6 - LINE OF CREDIT AND L_2
NOTE 6 - LINE OF CREDIT AND LONG TERM DEBT, RELATED PARTY (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Line of Credit and Term Loan [Abstract] | |
Schedule of Maturities of Long-term Debt [Table Text Block] | At December 31, 2018, future payments of promissory notes are as follows over each of the next five fiscal years: 2019 $ 426,350 2020 351,005 2021 282,699 2022 288,405 2023 146,378 Total $ 1,494,837 |
NOTE 7 - CAPITAL LEASE OBLIGA_2
NOTE 7 - CAPITAL LEASE OBLIGATIONS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Leases, Capital [Abstract] | |
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block] | At December 31, 2018, future payments under capital leases are as follows: 2019 $ 97,259 2020 70,147 2021 21,728 2022 19,920 2023 6,640 Total minimum lease payments 215,694 Less amounts representing interest (19,827 ) Present value of net minimum lease payments 195,867 Less current portion (87,355 ) Long-term capital lease obligation $ 108,512 |
NOTE 8 - EQUITY (Tables)
NOTE 8 - EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 and 2017 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, 2017 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- Options granted - $ - Options canceled/forfeited (6,000 ) $ 4.00 Outstanding options at December 31, 2018 56,280 $ 3.75 1.0 years $ -0- Vested Options: December 31, 2018: 43,640 $ 3.70 0.9 years $ -0- December 31, 2017: 34,640 $ 3.61 1.8 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 Average Remaining Contractual Term Balance, January 1, 2017 203,253 $ 5.29 3.2 years Granted 4,988 $ 4.01 5.0 years Exercised - $ - Canceled - $ - Outstanding and Exercisable December 31, 2017 208,241 $ 5.26 2.3 years Granted - $ - Exercised - $ - Canceled - $ - Outstanding and Exercisable December 31, 2018 208,241 $ 5.26 1.3 years |
NOTE 9 - BUSINESS COMBINATION (
NOTE 9 - BUSINESS COMBINATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | The following summarizes the purchase price allocation for all current year’s acquisitions: ISM (Preliminary) Measurement Period Adjustments ISM Adjusted Cash consideration $ 300,000 $ - $ 300,000 Note payable 1,000,000 - 1,000,000 Total purchase price 1,300,000 $ - $ 1,300,000 Deposits and other assets $ 7,235 $ - $ 7,235 Property and equipment 170,000 - 170,000 Customer List 1,148,499 (398,000 ) 750,499 Goodwill - 398,000 398,000 Total assets acquired 1,325,734 - 1,325,734 Capital lease obligations (25,734 ) - (25,734 ) Liabilities acquired (25,734 ) - (25,734 ) Net assets acquired 1,300,000 $ - $ 1,300,000 Nellnube (Preliminary) Measurement Period Adjustments Nellnube Adjusted Cash consideration $ - $ - $ - Note payable 400,000 - 400,000 Total purchase price 400,000 $ - $ 400,000 Property and equipment $ 50,000 $ - $ 50,000 Customer List 407,964 (86,000 ) 321,964 Goodwill - 86,000 86,000 Total assets acquired 457,964 - 457,964 Capital lease obligations (57,964 ) - (57,964 ) Liabilities acquired (57,964 ) (57,964 ) Net assets acquired 400,000 $ - $ 400,000 |
Business Acquisition, Pro Forma Information [Table Text Block] | The following unaudited pro forma information does not purport to present what the Company’s actual results would have been had the acquisitions occurred on January 1, 2017, nor is the financial information indicative of the results of future operations. The following table represents the unaudited consolidated pro forma results of operations for the year ended December 31, 2018 and 2017 as if the acquisition occurred on January 1, 2017. Operating expenses have been increased for the amortization expense associated with the estimated fair value adjustment as of December 31, 2018 of expected definite lived intangible assets and interest on the notes payable. Pro Forma Year Ended December 31, 2018 Year Ended December 31, 2017 Net revenues $ 42,873,990 $ 39,434,229 Cost of revenues 24,800,487 23,022,917 Operating expenses 17,573,000 15,382,825 Income before taxes 500,503 1,028,487 Net income (loss) $ 358,207 $ (410,286 ) Basic and diluted income (loss) per common share $ 0.08 $ (0.09 ) |
NOTE 10 - INCOME TAXES (Tables)
NOTE 10 - INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 2017 Deferred tax assets: Net operating loss carry forwards $ 1,734,577 $ 1,745,000 Long lived assets 265,478 285,000 Share based payments 13,000 13,000 Allowance for doubtful accounts 118,000 118,000 Other 15,000 15,000 Deferred tax asset 2,146,055 2,176,000 Deferred tax liabilities: Long lived assets (220,000 ) (179,000 ) Deferred tax liabilities (220,000 ) (179,000 ) Net deferred tax asset 1,926,055 1,997,000 Less: Valuation allowance (634,000 ) (634,000 ) Net deferred tax asset $ 1,292,055 1,363,000 |
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, 2018 and 2017: December 31, December 31, 2018 2017 Federal income tax rate 21 % 34 % State income tax, net of federal benefit 8 % 10 % Permanent differences - % 4 % Change in tax rates - % 103 % Change in valuation allowance - % 2 % Effective income tax rate 29 % 153 % |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Income tax provision (benefit): Year Ended December 31, December 31, 2018 2017 Current: Federal $ - $ 183,546 State and local 37,701 158,583 Total current tax provision (benefit) 37,701 342,129 Deferred: Federal 63,850 1,159,502 State and local 7,095 (107,600 ) Total deferred tax provision (benefit) 70,945 1,051,902 Total provision (benefit) $ 108,646 1,394,031 |
NOTE 12 - COMMITMENTS (Tables)
NOTE 12 - COMMITMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018. 2019 $ 369,561 2020 261,542 2021 196,680 2022 127,447 2023 119,677 Thereafter 40,177 $ 1,115,084 |
SUPPLEMENTAL SCHEDULE OF NON-_2
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: (Details) - USD ($) | Dec. 24, 2018 | May 31, 2018 | Mar. 31, 2018 | Jan. 23, 2017 | Dec. 31, 2018 | Dec. 31, 2017 |
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: (Details) [Line Items] | ||||||
Other Significant Noncash Transaction, Value of Consideration Given | $ 47,043 | |||||
Payments to Acquire Businesses, Gross | $ 300,000 | $ 0 | ||||
Common Stock, Dividends, Per Share, Cash Paid (in Dollars per share) | $ 0.05 | $ 0.02 | ||||
Dividends, Cash | $ 225,038 | 225,038 | 359,014 | |||
Capital Lease Obligations Incurred | 80,875 | $ 115,462 | ||||
Info Management Systems Inc ISM [Member] | ||||||
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: (Details) [Line Items] | ||||||
Notes Issued | 1,000,000 | |||||
Payments to Acquire Businesses, Gross | $ 300,000 | 300,000 | ||||
Noncash or Part Noncash Acquisition, Value of Liabilities Assumed | 25,734 | |||||
Nellnube, Inc ("NNB") [Member] | ||||||
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: (Details) [Line Items] | ||||||
Notes Issued | 400,000 | |||||
Payments to Acquire Businesses, Gross | 0 | |||||
Noncash or Part Noncash Acquisition, Value of Liabilities Assumed | $ 57,964 |
NOTE 2 - SUMMARY OF SIGNIFICA_2
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | Jan. 01, 2019 | Jan. 01, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||||
Revenues | $ 41,000,312 | $ 34,852,028 | ||
Cash, Uninsured Amount | 1,473,286 | |||
Cash, FDIC Insured Amount | $ 250,000 | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 34.00% | ||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 911,000 | |||
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 | |||
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% | |||
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | ||||
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||||
Revenues | $ 7,173,499 | $ 7,461,570 | ||
Concentration Risk, Percentage | 17.00% | 21.00% | ||
Supplier Concentration Risk [Member] | Cost of Goods, Total [Member] | ||||
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||||
Concentration Risk, Percentage | 22.00% | 23.00% | ||
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. | |||
Supplier Concentration Risk [Member] | Concentration Risk, Accounts Payable [Member] | ||||
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||||
Concentration Risk, Percentage | 40.00% | 37.00% | ||
Deferred Maintenance [Member] | ||||
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||||
Deferred Revenue | $ 444,498 | $ 452,773 | ||
Deferred Support Services [Member] | ||||
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||||
Deferred Revenue | 149,549 | 207,911 | ||
Deposits for Future Services [Member] | ||||
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||||
Deferred Revenue | 1,254,774 | 1,490,087 | ||
Consulting Service Revenue [Member] | ||||
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||||
Revenues | 14,777,150 | 13,074,353 | ||
Management Service [Member] | ||||
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||||
Revenues | 10,797,343 | 8,587,940 | ||
Ancillary Revenue [Member] | ||||
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||||
Revenues | $ 9,229,145 | $ 7,914,469 |
NOTE 3 - NET INCOME PER COMMO_3
NOTE 3 - NET INCOME PER COMMON SHARE (Details) - Schedule of Earnings Per Share, Basic and Diluted - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Basic net income (loss) per share: | ||
Net income (loss) (in Dollars) | $ 262,432 | $ (486,469) |
Weighted-average common shares outstanding | 4,499,559 | 4,489,013 |
Basic net income (loss) per shares (in Dollars per share) | $ 0.06 | $ (0.11) |
Diluted net income (loss) per share: | ||
Net income (loss) per above (in Dollars) | $ 262,432 | $ (486,469) |
Interest on convertible debt (in Dollars) | 13,444 | 0 |
Net income (loss) (in Dollars) | $ 275,876 | $ (486,469) |
Weighted-average common shares outstanding | 4,499,559 | 4,489,013 |
Incremental shares for stock options | 4,000 | 0 |
Incremental shares for convertible promissory notes | 202,928 | 0 |
Total adjusted weighted-average shares | 4,706,487 | 4,489,013 |
Diluted net income (loss) per share (in Dollars per share) | $ 0.06 | $ (0.11) |
NOTE 3 - NET INCOME PER COMMO_4
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, 2018 | Dec. 31, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Dilutive securities not included in loss per share | 250,521 | 270,521 |
Employee Stock Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Dilutive securities not included in loss per share | 42,280 | 62,280 |
Warrant [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Dilutive securities not included in loss per share | 208,241 | 208,241 |
NOTE 4 - PROPERTY AND EQUIPME_3
NOTE 4 - PROPERTY AND EQUIPMENT (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation, Depletion and Amortization | $ 326,285 | $ 255,362 |
NOTE 4 - PROPERTY AND EQUIPME_4
NOTE 4 - PROPERTY AND EQUIPMENT (Details) - Schedule of Property and Equipment - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property and Equipment | $ 2,578,563 | $ 2,131,688 |
Less: Accumulated depreciation | (1,890,441) | (1,564,156) |
Property and equipment, net | 688,122 | 567,532 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment | 98,831 | 88,511 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment | $ 2,479,732 | $ 2,043,177 |
NOTE 4 - PROPERTY AND EQUIPME_5
NOTE 4 - PROPERTY AND EQUIPMENT (Details) - Schedule of Capital Leased Assets - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Capital Leased Assets [Abstract] | ||
Equipment, furniture and fixtures | $ 436,084 | $ 315,560 |
Less: Accumulated amortization | (103,061) | (126,478) |
Property and equipment, net | $ 333,023 | $ 189,082 |
NOTE 5 - GOODWILL AND INTANGI_3
NOTE 5 - GOODWILL AND INTANGIBLE ASSETS (Details) - USD ($) | Sep. 01, 2017 | Dec. 31, 2018 | Dec. 31, 2017 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of Intangible Assets | $ 376,800 | $ 364,934 | |
Capitalized Computer Software, Additions | 303,361 | ||
Payments to Acquire Intangible Assets | $ 60,000 | $ 0 | $ 60,000 |
NOTE 5 - GOODWILL AND INTANGI_4
NOTE 5 - GOODWILL AND INTANGIBLE ASSETS (Details) - Schedule of Goodwill | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Goodwill [Line Items] | |
Goodwill balance | $ 401,000 |
Goodwill balance | 885,000 |
Info Management Systems Inc ISM [Member] | |
Goodwill [Line Items] | |
Acquisition | 398,000 |
Goodwill balance | 398,000 |
Nellnube, Inc ("NNB") [Member] | |
Goodwill [Line Items] | |
Acquisition | 86,000 |
Goodwill balance | $ 86,000 |
NOTE 5 - GOODWILL AND INTANGI_5
NOTE 5 - GOODWILL AND INTANGIBLE ASSETS (Details) - Schedule of Finite-Lived Intangible Assets - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset, gross | $ 6,011,665 | $ 4,321,660 |
Less: accumulated amortization | (2,058,003) | (1,681,203) |
Intangible asset, net | 3,953,662 | 2,640,457 |
Computer Software, Intangible Asset [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset, gross | $ 1,809,651 | 1,192,109 |
Computer Software, Intangible Asset [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Life | 5 years | |
Computer Software, Intangible Asset [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Life | 7 years | |
Intellectual property, customer list, and acquired contracts [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset, gross | $ 4,202,014 | $ 3,129,551 |
Intellectual property, customer list, and acquired contracts [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Life | 5 years | |
Intellectual property, customer list, and acquired contracts [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Life | 15 years |
NOTE 5 - GOODWILL AND INTANGI_6
NOTE 5 - GOODWILL AND INTANGIBLE ASSETS (Details) - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Abstract] | ||
2019 | $ 546,720 | |
2020 | 528,728 | |
2021 | 492,178 | |
2022 | 425,476 | |
2023 | 362,363 | |
thereafter | 1,598,197 | |
Total | $ 3,953,662 | $ 2,640,457 |
NOTE 6 - LINE OF CREDIT AND L_3
NOTE 6 - LINE OF CREDIT AND LONG TERM DEBT, RELATED PARTY (Details) - USD ($) | Sep. 11, 2018 | May 31, 2018 | Mar. 31, 2018 | Sep. 01, 2017 | Jul. 21, 2016 | Oct. 19, 2015 | Jul. 06, 2015 | Mar. 11, 2015 | May 06, 2014 | Dec. 31, 2018 | Dec. 31, 2017 |
NOTE 6 - LINE OF CREDIT AND LONG TERM DEBT, RELATED PARTY (Details) [Line Items] | |||||||||||
Long-term Debt | $ 1,494,837 | ||||||||||
Payments to Acquire Intangible Assets | $ 60,000 | 0 | $ 60,000 | ||||||||
Payments to Acquire Businesses, Gross | 300,000 | 0 | |||||||||
Oates & Company, LLC (Oates) [Member] | |||||||||||
NOTE 6 - LINE OF CREDIT AND LONG TERM DEBT, RELATED PARTY (Details) [Line Items] | |||||||||||
Payments to Acquire Businesses, Gross | $ 125,000 | ||||||||||
Info Management Systems Inc ISM [Member] | |||||||||||
NOTE 6 - LINE OF CREDIT AND LONG TERM DEBT, RELATED PARTY (Details) [Line Items] | |||||||||||
Debt Instrument, Face Amount | $ 1,000,000 | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.00% | ||||||||||
Debt Instrument, Periodic Payment | $ 17,528 | ||||||||||
Long-term Debt | 904,436 | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 750,499 | ||||||||||
Debt Instrument, Term | 5 years | ||||||||||
Payments to Acquire Businesses, Gross | $ 300,000 | 300,000 | |||||||||
Business Combination, Consideration Transferred, Liabilities Incurred | $ 1,000,000 | 1,000,000 | |||||||||
Debt Instrument, Convertible, Terms of Conversion Feature | The ISM Note is due five years from the closing date and bears interest at a rate of two (2%) percent. Monthly payments including interest are $17,528. The ISM Note has an optional conversion feature where the Holder may, at its sole and exclusive option, elect to convert, at any time and from time to time, until payment in full of the ISM Note, all of the principal amount of the ISM Note, plus accrued interest, into shares (the “Conversion Shares”) of the Company’s Common Stock, (“Common Stock”), at a price equal to the average closing price of its Common Stock for the five (5) trading days immediately preceding the issuance date of the ISM Note (the “Fixed Conversion Price”) which resulted in a $4.03 per share conversion based on the above formula | ||||||||||
Debt Instrument, Convertible, Conversion Price (in Dollars per share) | $ 4.03 | ||||||||||
Nellnube, Inc ("NNB") [Member] | |||||||||||
NOTE 6 - LINE OF CREDIT AND LONG TERM DEBT, RELATED PARTY (Details) [Line Items] | |||||||||||
Debt Instrument, Face Amount | $ 400,000 | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.00% | ||||||||||
Debt Instrument, Periodic Payment | $ 7,011 | ||||||||||
Long-term Debt | 361,774 | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 321,964 | ||||||||||
Debt Instrument, Term | 5 years | ||||||||||
Payments to Acquire Businesses, Gross | 0 | ||||||||||
Business Combination, Consideration Transferred, Liabilities Incurred | $ 400,000 | ||||||||||
Debt Instrument, Convertible, Terms of Conversion Feature | The Nellnube Note is due five years from the closing date and bears interest at a rate of two (2%) percent. Monthly payments including interest are $7,011. The Nellnube Note has an optional conversion feature where the Holder may, at its sole and exclusive option, elect to convert, at any time and from time to time, until payment in full of the Nellnube Note, all of the principal amount of the Nellnube Note, plus accrued interest, into shares (the “Conversion Shares”) of the Company’s Common Stock, (“Common Stock”), at a price equal to the average closing price of its Common Stock for the five (5) trading days immediately preceding the issuance date of the Nellnube Note (the “Fixed Conversion Price”) which resulted in a $4.03 per share conversion price based on the above formula | ||||||||||
Debt Instrument, Convertible, Conversion Price (in Dollars per share) | $ 4.03 | ||||||||||
Notes Payable to Banks [Member] | JPM Revolving Demand Note [Member] | |||||||||||
NOTE 6 - LINE OF CREDIT AND LONG TERM DEBT, RELATED PARTY (Details) [Line Items] | |||||||||||
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 4.65% | ||||||||||
Notes Payable, Other Payables [Member] | ESC Inc. DBA ESC Software [Member] | |||||||||||
NOTE 6 - LINE OF CREDIT AND LONG TERM DEBT, RELATED PARTY (Details) [Line Items] | |||||||||||
Debt Instrument, Face Amount | $ 350,000 | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.00% | ||||||||||
Debt Instrument, Periodic Payment | $ 6,135 | ||||||||||
Long-term Debt | $ 30,521 | 102,742 | |||||||||
Notes Payable, Other Payables [Member] | 2000 SOFT, Inc. DBA Accounting Technology Resource (ATR) [Member] | |||||||||||
NOTE 6 - LINE OF CREDIT AND LONG TERM DEBT, RELATED PARTY (Details) [Line Items] | |||||||||||
Debt Instrument, Face Amount | $ 175,000 | ||||||||||
Debt Instrument, Frequency of Periodic Payment | Monthly | ||||||||||
Long-term Debt | 14,987 | ||||||||||
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 LONG TERM DEBT, RELATED PARTY (Details) [Line Items] | |||||||||||
Debt Instrument, Face Amount | $ 600,000 | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.50% | ||||||||||
Debt Instrument, Frequency of Periodic Payment | Monthly | ||||||||||
Debt Instrument, Periodic Payment | $ 10,645 | ||||||||||
Long-term Debt | $ 198,106 | 319,249 | |||||||||
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 LONG TERM DEBT, RELATED PARTY (Details) [Line Items] | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.00% | ||||||||||
Debt Instrument, Term | 3 years | ||||||||||
Business Combination, Consideration Transferred, Liabilities Incurred | $ 175,000 | ||||||||||
Convertible Debt | $ 49,494 | ||||||||||
Debt Instrument, Increase (Decrease), Other, Net | $ (47,043) | ||||||||||
Maximum [Member] | Notes Payable to Banks [Member] | |||||||||||
NOTE 6 - LINE OF CREDIT AND LONG TERM DEBT, RELATED PARTY (Details) [Line Items] | |||||||||||
Debt Instrument, Face Amount | $ 1,000,000 | ||||||||||
Maximum [Member] | Notes Payable to Banks [Member] | JPM Revolving Demand Note [Member] | |||||||||||
NOTE 6 - LINE OF CREDIT AND LONG TERM DEBT, RELATED PARTY (Details) [Line Items] | |||||||||||
Debt Instrument, Face Amount | $ 2,000,000 | ||||||||||
Minimum [Member] | Notes Payable to Banks [Member] | |||||||||||
NOTE 6 - LINE OF CREDIT AND LONG TERM DEBT, RELATED PARTY (Details) [Line Items] | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.00% | ||||||||||
Prime Rate [Member] | Notes Payable to Banks [Member] | |||||||||||
NOTE 6 - LINE OF CREDIT AND LONG TERM DEBT, RELATED PARTY (Details) [Line Items] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.95% | ||||||||||
London Interbank Offered Rate (LIBOR) [Member] | Notes Payable to Banks [Member] | JPM Revolving Demand Note [Member] | |||||||||||
NOTE 6 - LINE OF CREDIT AND LONG TERM DEBT, RELATED PARTY (Details) [Line Items] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.25% |
NOTE 6 - LINE OF CREDIT AND L_4
NOTE 6 - LINE OF CREDIT AND LONG TERM DEBT, RELATED PARTY (Details) - Schedule of Maturities of Long-term Debt | Dec. 31, 2018USD ($) |
Schedule of Maturities of Long-term Debt [Abstract] | |
2019 | $ 426,350 |
2020 | 351,005 |
2021 | 282,699 |
2022 | 288,405 |
2023 | 146,378 |
Total | $ 1,494,837 |
NOTE 7 - CAPITAL LEASE OBLIGA_3
NOTE 7 - CAPITAL LEASE OBLIGATIONS (Details) | Dec. 31, 2018 |
Minimum [Member] | |
NOTE 7 - CAPITAL LEASE OBLIGATIONS (Details) [Line Items] | |
Capital Leases of Lessee, Contingent Rentals, Basis Spread on Variable Rate | 0.005% |
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 OBLIGA_4
NOTE 7 - CAPITAL LEASE OBLIGATIONS (Details) - Schedule of Future Minimum Lease Payments for Capital Leases - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Future Minimum Lease Payments for Capital Leases [Abstract] | ||
2019 | $ 97,259 | |
2020 | 70,147 | |
2021 | 21,728 | |
2022 | 19,920 | |
2023 | 6,640 | |
Total minimum lease payments | 215,694 | |
Less amounts representing interest | (19,827) | |
Present value of net minimum lease payments | 195,867 | |
Less current portion | (87,355) | $ (94,443) |
Long-term capital lease obligation | $ 108,512 | $ 68,614 |
NOTE 8 - EQUITY (Details)
NOTE 8 - EQUITY (Details) | Dec. 24, 2018USD ($)$ / shares | Oct. 24, 2018shares | Mar. 30, 2018USD ($)shares | Mar. 23, 2018USD ($)shares | Feb. 08, 2018USD ($)shares | Jan. 18, 2018USD ($)shares | 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 | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($)shares |
NOTE 8 - EQUITY (Details) [Line Items] | |||||||||||||||
Dividends Payable, Date Declared | Jan. 23, 2017 | ||||||||||||||
Common Stock, Dividends, Per Share, Cash Paid (in Dollars per share) | $ / shares | $ 0.05 | $ 0.02 | |||||||||||||
Dividends Payable, Date to be Paid | Jan. 31, 2017 | ||||||||||||||
Payments of Dividends | $ 179,632 | $ 89,816 | $ 89,566 | $ 0 | $ 359,014 | ||||||||||
Stock Issued During Period, Shares, Share-based Compensation, Gross (in Shares) | shares | 100 | 100 | |||||||||||||
Number of Employees | 10 | 10 | 125 | ||||||||||||
Stock Issued During Period, Value, Share-based Compensation, Gross | $ 3,830 | $ 47,500 | |||||||||||||
Common Stock, Dividends, Per Share, Declared (in Dollars per share) | $ / shares | $ 0.04 | $ 0.02 | |||||||||||||
Stock Issued During Period, Value, Issued for Services | 45,306 | 47,500 | |||||||||||||
Stock Repurchased and Retired During Period, Shares (in Shares) | shares | 1,000 | ||||||||||||||
Dividends, Common Stock, Cash | $ 225,038 | ||||||||||||||
Share-based Compensation | 73,305 | $ 101,688 | |||||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ 28,203 | ||||||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 219 days | ||||||||||||||
Class of Warrant or Rights, Granted (in Shares) | shares | 0 | 4,988 | |||||||||||||
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 | ||||||||||||||
Warrants [Member] | |||||||||||||||
NOTE 8 - EQUITY (Details) [Line Items] | |||||||||||||||
Share-based Compensation | $ 28,000 | $ 34,265 | |||||||||||||
Financial Advisory Services [Member] | |||||||||||||||
NOTE 8 - EQUITY (Details) [Line Items] | |||||||||||||||
Stock Issued During Period, Shares, Issued for Services (in Shares) | shares | 5,115 | 4,825 | |||||||||||||
Stock Issued During Period, Value, Issued for Services | $ 20,204 | $ 17,852 | |||||||||||||
Legal Services [Member] | |||||||||||||||
NOTE 8 - EQUITY (Details) [Line Items] | |||||||||||||||
Stock Issued During Period, Shares, Issued for Services (in Shares) | shares | 912 | ||||||||||||||
Stock Issued During Period, Value, Issued for Services | $ 3,420 | ||||||||||||||
Measurement Input, Expected Dividend Rate [Member] | Director [Member] | |||||||||||||||
NOTE 8 - EQUITY (Details) [Line Items] | |||||||||||||||
Warrants and Rights Outstanding, Measurement Input | 0 | ||||||||||||||
Measurement Input, Risk Free Interest Rate [Member] | Director [Member] | |||||||||||||||
NOTE 8 - EQUITY (Details) [Line Items] | |||||||||||||||
Warrants and Rights Outstanding, Measurement Input | 0.0142 | ||||||||||||||
Measurement Input, Option Volatility [Member] | Director [Member] | |||||||||||||||
NOTE 8 - EQUITY (Details) [Line Items] | |||||||||||||||
Warrants and Rights Outstanding, Measurement Input | 2.8428 | ||||||||||||||
Measurement Input, Expected Term [Member] | Director [Member] | |||||||||||||||
NOTE 8 - EQUITY (Details) [Line Items] | |||||||||||||||
Warrants and Rights Outstanding, Measurement Input | 5 |
NOTE 8 - EQUITY (Details) - Sc
NOTE 8 - EQUITY (Details) - Schedule of Share-based Compensation, Stock Options, Activity - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Share-based Compensation, Stock Options, Activity [Abstract] | |||
Number of Options Outstanding | 62,280 | 143,576 | |
Options Outstanding, Average Exercise Price | $ 3.78 | $ 3.76 | |
Options Outstanding, Average Remaining Contractual Term | 1 year | 2 years | 1 year 219 days |
Options Outstanding, Aggregate Intrinsic Value | $ 0 | $ 0 | |
Number of Options Vested | 43,640 | 34,640 | |
Options Vested, Average Exercise Price | $ 3.70 | $ 3.61 | |
Options Vested, Average Remaining Contractual Term | 328 days | 1 year 292 days | |
Options Vested, Aggregate Intrinsic Value | $ 0 | $ 0 | |
Number of Options granted | 0 | 0 | |
Options Granted, Average Exercise Price | $ 0 | $ 0 | |
Options Canceled/forfeited, Average Exercise Price | (6,000) | (81,296) | |
Options Canceled/forfeited, Average Remaining Contractual Term | $ 4 | $ 4.80 | |
Number of Options Outstanding | 56,280 | 62,280 | |
Options Outstanding, Average Exercise Price | $ 3.75 | $ 3.78 | |
Options Outstanding, Aggregate Intrinsic Value | $ 0 | $ 0 |
NOTE 8 - EQUITY (Details) - _2
NOTE 8 - EQUITY (Details) - Schedule of Stockholders' Equity Note, Warrants or Rights - $ / shares | Dec. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Stockholders' Equity Note, Warrants or Rights [Abstract] | |||
Warrants Outstanding and Exercisable | 203,253 | 208,241 | |
Warrants Outstanding and Exercisable, Weighted Average Exercise Price | $ 5.29 | $ 5.26 | |
Warrants Outstanding and Exercisable, Average Remaining Contractual Term | 3 years 73 days | 1 year 109 days | 2 years 109 days |
Warrants Granted | 0 | 4,988 | |
Warrants Granted, Weighted Average Exercise Price | $ 0 | $ 4.01 | |
Warrants Granted, Average Remaining Contractual Term | 5 years | ||
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 | 208,241 | |
Warrants Outstanding and Exercisable, Weighted Average Exercise Price | $ 5.26 | $ 5.26 |
NOTE 9 - BUSINESS COMBINATION_2
NOTE 9 - BUSINESS COMBINATION (Details) - USD ($) | May 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Info Management Systems Inc ISM [Member] | |||
NOTE 9 - BUSINESS COMBINATION (Details) [Line Items] | |||
Debt Instrument, Face Amount | $ 1,000,000 | ||
Payments to Acquire Businesses, Gross | $ 300,000 | $ 300,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 2.00% | ||
Debt Instrument, Periodic Payment | $ 17,528 | ||
Debt Instrument, Convertible, Conversion Price (in Dollars per share) | $ 4.03 | ||
Nellnube, Inc ("NNB") [Member] | |||
NOTE 9 - BUSINESS COMBINATION (Details) [Line Items] | |||
Debt Instrument, Face Amount | $ 400,000 | ||
Payments to Acquire Businesses, Gross | 0 | ||
Debt Instrument, Interest Rate, Stated Percentage | 2.00% | ||
Debt Instrument, Periodic Payment | $ 7,011 | ||
Debt Instrument, Convertible, Conversion Price (in Dollars per share) | $ 4.03 | ||
Information Systems Management, Inc. and Nellnube, Inc. [Member] | |||
NOTE 9 - BUSINESS COMBINATION (Details) [Line Items] | |||
Amortization of Intangible Assets | 38,896 | $ 93,348 | |
Net Income (Loss) Attributable to Parent | 174,264 | ||
Revenues | 1,859,424 | ||
Cost of Revenue | 701,600 | ||
Operating Expenses | $ 983,559 | ||
Customer Lists [Member] | Info Management Systems Inc ISM [Member] | |||
NOTE 9 - BUSINESS COMBINATION (Details) [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 15 years | ||
Customer Lists [Member] | Nellnube, Inc ("NNB") [Member] | |||
NOTE 9 - BUSINESS COMBINATION (Details) [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 15 years |
NOTE 9 - BUSINESS COMBINATION_3
NOTE 9 - BUSINESS COMBINATION (Details) - Schedule of Business Acquisitions, by Acquisition - USD ($) | May 31, 2018 | Dec. 31, 2018 |
Info Management Systems Inc ISM [Member] | ||
Business Acquisition [Line Items] | ||
Cash consideration | $ 300,000 | $ 300,000 |
Note payable | $ 1,000,000 | 1,000,000 |
Total purchase price | 1,300,000 | |
Deposits and other assets | 7,235 | |
Property and equipment | 170,000 | |
Customer List | 750,499 | |
Goodwill | 398,000 | |
Total assets acquired | 1,325,734 | |
Capital lease obligations | (25,734) | |
Liabilities acquired | (25,734) | |
Net assets acquired | 1,300,000 | |
Nellnube, Inc ("NNB") [Member] | ||
Business Acquisition [Line Items] | ||
Cash consideration | 0 | |
Note payable | 400,000 | |
Total purchase price | 400,000 | |
Property and equipment | 50,000 | |
Customer List | 321,964 | |
Goodwill | 86,000 | |
Total assets acquired | 457,964 | |
Capital lease obligations | (57,964) | |
Liabilities acquired | (57,964) | |
Net assets acquired | 400,000 | |
Preliminary [Member] | Info Management Systems Inc ISM [Member] | ||
Business Acquisition [Line Items] | ||
Cash consideration | 300,000 | |
Note payable | 1,000,000 | |
Total purchase price | 1,300,000 | |
Deposits and other assets | 7,235 | |
Property and equipment | 170,000 | |
Customer List | 1,148,499 | |
Goodwill | 0 | |
Total assets acquired | 1,325,734 | |
Capital lease obligations | (25,734) | |
Liabilities acquired | (25,734) | |
Net assets acquired | 1,300,000 | |
Preliminary [Member] | Nellnube, Inc ("NNB") [Member] | ||
Business Acquisition [Line Items] | ||
Cash consideration | 0 | |
Note payable | 400,000 | |
Total purchase price | 400,000 | |
Property and equipment | 50,000 | |
Customer List | 407,964 | |
Goodwill | 0 | |
Total assets acquired | 457,964 | |
Capital lease obligations | (57,964) | |
Liabilities acquired | (57,964) | |
Net assets acquired | 400,000 | |
Measurement Period Adjustments [Member] | Info Management Systems Inc ISM [Member] | ||
Business Acquisition [Line Items] | ||
Cash consideration | 0 | |
Note payable | 0 | |
Total purchase price | 0 | |
Deposits and other assets | 0 | |
Property and equipment | 0 | |
Customer List | (398,000) | |
Goodwill | 398,000 | |
Total assets acquired | 0 | |
Capital lease obligations | 0 | |
Liabilities acquired | 0 | |
Net assets acquired | 0 | |
Measurement Period Adjustments [Member] | Nellnube, Inc ("NNB") [Member] | ||
Business Acquisition [Line Items] | ||
Cash consideration | 0 | |
Note payable | 0 | |
Total purchase price | 0 | |
Property and equipment | 0 | |
Customer List | (86,000) | |
Goodwill | 86,000 | |
Total assets acquired | 0 | |
Capital lease obligations | 0 | |
Liabilities acquired | 0 | |
Net assets acquired | $ 0 |
NOTE 9 - BUSINESS COMBINATION_4
NOTE 9 - BUSINESS COMBINATION (Details) - Business Acquisition, Pro Forma Information - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Business Acquisition, Pro Forma Information [Abstract] | ||
Net revenues | $ 42,873,990 | $ 39,434,229 |
Cost of revenues | 24,800,487 | 23,022,917 |
Operating expenses | 17,573,000 | 15,382,825 |
Income before taxes | 500,503 | 1,028,487 |
Net income | $ 358,207 | $ (410,286) |
Basic and diluted income per common share (in Dollars per share) | $ 0.08 | $ (0.09) |
NOTE 10 - INCOME TAXES (Details
NOTE 10 - INCOME TAXES (Details) - USD ($) | Jan. 01, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
NOTE 10 - INCOME TAXES (Details) [Line Items] | |||
Operating Loss Carryforwards | $ 6,532,000 | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 34.00% | |
Other Tax Expense (Benefit) | $ (108,646) | $ 1,394,031 | |
Minimum [Member] | |||
NOTE 10 - INCOME TAXES (Details) [Line Items] | |||
Operating Loss Carryforwards, Expiration Date | 2024 | ||
Maximum [Member] | |||
NOTE 10 - INCOME TAXES (Details) [Line Items] | |||
Operating Loss Carryforwards, Expiration Date | 2033 | ||
Domestic Tax Authority [Member] | |||
NOTE 10 - INCOME TAXES (Details) [Line Items] | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% |
NOTE 10 - INCOME TAXES (Detail
NOTE 10 - INCOME TAXES (Details) - Schedule of Deferred Tax Assets and Liabilities - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Net operating loss carry forwards | $ 1,734,577 | $ 1,745,000 |
Long lived assets | 265,478 | 285,000 |
Share based payments | 13,000 | 13,000 |
Allowance for doubtful accounts | 118,000 | 118,000 |
Other | 15,000 | 15,000 |
Deferred tax asset | 2,146,055 | 2,176,000 |
Deferred tax liabilities: | ||
Long lived assets | (220,000) | (179,000) |
Deferred tax liabilities | (220,000) | (179,000) |
Net deferred tax asset | 1,926,055 | 1,997,000 |
Less: Valuation allowance | (634,000) | (634,000) |
Net deferred tax asset | $ 1,292,055 | $ 1,363,000 |
NOTE 10 - INCOME TAXES (Deta_2
NOTE 10 - INCOME TAXES (Details) - Schedule of Effective Income Tax Rate Reconciliation | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of Effective Income Tax Rate Reconciliation [Abstract] | ||
Federal income tax rate | 21.00% | 34.00% |
State income tax, net of federal benefit | 8.00% | 10.00% |
Permanent differences | 0.00% | 4.00% |
Change in tax rates | 0.00% | 103.00% |
Change in valuation allowance | 0.00% | 2.00% |
Effective income tax rate | 29.00% | 153.00% |
NOTE 10 - INCOME TAXES (Deta_3
NOTE 10 - INCOME TAXES (Details) - Schedule of Components of Income Tax Expense (Benefit) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of Components of Income Tax Expense (Benefit) [Abstract] | ||
Federal | $ 0 | $ 183,546 |
State and local | 37,701 | 158,583 |
Total current tax provision (benefit) | 37,701 | 342,129 |
Federal | 63,850 | 1,159,502 |
State and local | 7,095 | (107,600) |
Total deferred tax provision (benefit) | 70,945 | 1,051,902 |
Total provision (benefit) | $ 108,646 | $ 1,394,031 |
NOTE 11 - RELATED PARTY TRANS_2
NOTE 11 - RELATED PARTY TRANSACTIONS (Details) - Building [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
North Syracuse, New York [Member] | ||
NOTE 11 - RELATED PARTY TRANSACTIONS (Details) [Line Items] | ||
Operating Leases, Rent Expense | $ 26,600 | $ 25,200 |
North Syracuse, New York [Member] | Chief Financial Officer [Member] | ||
NOTE 11 - RELATED PARTY TRANSACTIONS (Details) [Line Items] | ||
Lease Expiration Date | May 31, 2018 | |
Operating Leases, Rent Expense, Minimum Rentals | $ 2,300 | |
Seattle, WA [Member] | ||
NOTE 11 - RELATED PARTY TRANSACTIONS (Details) [Line Items] | ||
Operating Leases, Rent Expense | 15,915 | $ 37,358 |
Seattle, WA [Member] | Affiliated Entity [Member] | ||
NOTE 11 - 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 ($) | Oct. 01, 2015USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
NOTE 12 - COMMITMENTS (Details) [Line Items] | ||||
Payments to Acquire Businesses, Gross | $ 300,000 | $ 0 | ||
The Macabe Associates, Inc. (Macabe) [Member] | ||||
NOTE 12 - COMMITMENTS (Details) [Line Items] | ||||
Operating Leases, Rent Expense | 417,205 | $ 412,272 | ||
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 | $ 22,548 | ||
Building [Member] | ||||
NOTE 12 - COMMITMENTS (Details) [Line Items] | ||||
Number of Locations of Office Space Leases | 10 | |||
Lessee, Operating Lease, Description | expire at various dates through April 2024 | |||
Minimum [Member] | Building [Member] | ||||
NOTE 12 - COMMITMENTS (Details) [Line Items] | ||||
Operating Leases, Rent Expense, Minimum Rentals | $ 582 | |||
Maximum [Member] | Building [Member] | ||||
NOTE 12 - COMMITMENTS (Details) [Line Items] | ||||
Operating Leases, Rent Expense, Minimum Rentals | $ 10,044 | |||
Employment Agreement [Member] | Chief Executive Officer [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 | |||
Employment Agreement, Annual Salary | $ 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 $100,000 of his gross income for services rendered to the Company in each of the five prior calendar years should his employment be terminated following a change in control (as defined in the Meller Employment Agreement). |
NOTE 12 - COMMITMENTS (Details
NOTE 12 - COMMITMENTS (Details) - Schedule of Future Minimum Rental Payments for Operating Leases | Dec. 31, 2018USD ($) |
Schedule of Future Minimum Rental Payments for Operating Leases [Abstract] | |
2019 | $ 369,561 |
2020 | 261,542 |
2021 | 196,680 |
2022 | 127,447 |
2023 | 119,677 |
Thereafter | 40,177 |
$ 1,115,084 |
NOTE 13 - SUBSEQUENT EVENTS (De
NOTE 13 - SUBSEQUENT EVENTS (Details) - Subsequent Event [Member] | Feb. 25, 2019USD ($)ft² | Feb. 11, 2019USD ($) | Jan. 02, 2019USD ($) |
Building [Member] | |||
NOTE 13 - SUBSEQUENT EVENTS (Details) [Line Items] | |||
Area of Real Estate Property (in Square Feet) | ft² | 1,180 | ||
Operating Leases, Rent Expense, Minimum Rentals | $ 1,942 | ||
Lease Expiration Date | Mar. 31, 2022 | ||
Chief Financial Officer [Member] | |||
NOTE 13 - SUBSEQUENT EVENTS (Details) [Line Items] | |||
Employment Agreement, Annual Salary | $ 220,000 | ||
Employment Agreement, Discretionary Bonus, Percentage | 10.00% | ||
Partners in Technology, Inc ("PIT") [Member] | |||
NOTE 13 - SUBSEQUENT EVENTS (Details) [Line Items] | |||
Payments to Acquire Businesses, Gross | $ 60,000 | ||
Debt Instrument, Face Amount | $ 174,000 | ||
Maximum [Member] | Building [Member] | |||
NOTE 13 - SUBSEQUENT EVENTS (Details) [Line Items] | |||
Operating Leases, Rent Expense, Minimum Rentals | $ 2,040 |