Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 25, 2019 | Jun. 30, 2018 | |
Document Information [Line Items] | |||
Entity Registrant Name | TOWERSTREAM CORP | ||
Entity Central Index Key | 0001349437 | ||
Trading Symbol | twer | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | true | ||
Entity Common Stock, Shares Outstanding (in shares) | 394,409 | ||
Entity Public Float | $ 272,139 | ||
Entity Shell Company | false | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Current Assets | ||
Cash and cash equivalents | $ 4,173,070 | $ 7,568,982 |
Accounts receivable, net of reserves for uncollectable accounts of $154,114 and $95,884, respectively | 538,103 | 912,333 |
Prepaid expenses and other current assets | 600,482 | 242,320 |
Total Current Assets | 5,311,655 | 8,723,635 |
Property and equipment, net | 10,078,151 | 13,430,980 |
Intangible assets, net | 963,210 | 2,242,471 |
Goodwill | 1,674,281 | 1,674,281 |
Other assets | 391,467 | 386,047 |
Total Assets | 18,418,764 | 26,457,414 |
Current Liabilities | ||
Accounts payable | 175,810 | 1,150,861 |
Accrued expenses | 810,352 | 1,622,036 |
Accrued interest | 722,629 | |
Deferred revenues | 985,914 | 934,450 |
Current maturities of capital lease obligations | 341,975 | 382,918 |
Current liabilities of discontinued operations | 1,005,073 | 1,029,022 |
Deferred rent | 159,020 | 78,048 |
Short-term debt (callable), net of debt discounts and deferred financing costs of $0 and $789,287, respectively | 38,699,307 | 33,868,700 |
Total Current Liabilities | 42,177,451 | 39,788,664 |
Long-Term Liabilities | ||
Capital lease obligations, net of current maturities | 295,747 | 305,947 |
Other | 386,025 | 754,203 |
Total Long-Term Liabilities | 681,772 | 1,060,150 |
Total Liabilities | 42,859,223 | 40,848,814 |
Commitments (Note 16) | ||
Stockholders' Deficit | ||
Common stock, par value $0.001; 200,000,000 shares authorized; 394,409 shares issued and outstanding as of December 31, 2018 and 2017, respectively | 394 | 394 |
Additional paid-in-capital | 174,894,507 | 174,733,113 |
Accumulated deficit | (199,335,362) | (189,124,909) |
Total Stockholders' Deficit | (24,440,459) | (14,391,400) |
Total Liabilities, Series I Preferred Stock and Stockholders' Deficit | 18,418,764 | 26,457,414 |
Series I Preferred Stock [Member] | ||
Series I Preferred Stock | ||
Series I Preferred – 100 and 0 shares issued and outstanding, respectively; (Liquidation value – Note 10) | ||
Series G Convertible Preferred Stock [Member] | ||
Stockholders' Deficit | ||
Preferred stock | 1 | 1 |
Series H Convertible Preferred Stock [Member] | ||
Stockholders' Deficit | ||
Preferred stock | $ 1 | $ 1 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts receivable, reserves for uncollectable accounts | $ 154,114 | $ 95,884 |
Debt discount, current | $ 0 | $ 789,287 |
Preferred stock, par value (in dollars per share) | $ 0.001 | |
Preferred stock, shares authorized (in shares) | 5,000,000 | |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, issued (in shares) | 394,409 | 394,409 |
Common stock, outstanding (in shares) | 394,409 | 394,409 |
Series I Preferred Stock [Member] | ||
Series I preferred stock, shares issued (in shares) | 100 | 0 |
Series I preferred stock, shares outstanding (in shares) | 100 | 0 |
Series G Convertible Preferred Stock [Member] | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 538 | 538 |
Preferred stock, shares outstanding (in shares) | 538 | 538 |
Preferred stock, liquidation value | $ 538,000 | $ 538,000 |
Series H Convertible Preferred Stock [Member] | ||
Preferred stock, shares issued (in shares) | 501 | 501 |
Preferred stock, shares outstanding (in shares) | 501 | 501 |
Preferred stock, liquidation value | $ 501,000 | $ 501,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues | $ 24,604,310 | $ 26,212,550 |
Operating Expenses | ||
Infrastructure and access | 11,064,325 | 10,670,673 |
Depreciation and amortization | 6,437,050 | 6,734,987 |
Network operations | 3,210,968 | 4,342,392 |
Customer support | 1,475,865 | 1,608,526 |
Sales and marketing | 1,966,369 | 3,883,438 |
General and administrative | 4,067,265 | 6,324,084 |
Total Operating Expenses | 28,221,842 | 33,564,100 |
Operating Loss | (3,617,532) | (7,351,550) |
Other Expense | ||
Interest expense, net | (6,929,519) | (5,201,972) |
Total Other Expense | (6,929,519) | (5,201,972) |
Loss before income taxes | (10,547,051) | (12,553,522) |
Benefit for income taxes | 336,598 | 83,840 |
Net Loss | (10,210,453) | (12,469,682) |
Deemed dividend to Series D and F preferred stockholders | (1,905,570) | |
Net loss attributable to common stockholders | $ (10,210,453) | $ (14,375,252) |
Net loss per common share – Basic and diluted (in dollars per share) | $ (25.89) | $ (43.01) |
Weighted average common shares outstanding – Basic and diluted (in shares) | 394,409 | 334,234 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Deficit - USD ($) | January 9, 2017 [Member]Preferred Stock [Member]Series E Convertible Preferred Stock [Member] | January 9, 2017 [Member]Common Stock [Member] | January 9, 2017 [Member]Additional Paid-in Capital [Member] | January 26 to April 13, 2017 [Member]Preferred Stock [Member]Series F Convertible Preferred Stock [Member] | January 26 to April 13, 2017 [Member]Common Stock [Member] | January 26 to April 13, 2017 [Member]Additional Paid-in Capital [Member] | May 26, 2017 [Member]Preferred Stock [Member]Series D Convertible Preferred Stock [Member] | May 26, 2017 [Member]Preferred Stock [Member]Series F Convertible Preferred Stock [Member] | May 26, 2017 [Member]Preferred Stock [Member]Series G Convertible Preferred Stock [Member] | May 26, 2017 [Member]Preferred Stock [Member]Series H Convertible Preferred Stock [Member] | May 26, 2017 [Member]Additional Paid-in Capital [Member] | May 30 to June 29, 2017 [Member]Preferred Stock [Member]Series H Convertible Preferred Stock [Member] | May 30 to June 29, 2017 [Member]Common Stock [Member] | May 30 to June 29, 2017 [Member]Additional Paid-in Capital [Member] | June 30 to August 22, 2017 [Member]Preferred Stock [Member]Series G Convertible Preferred Stock [Member] | June 30 to August 22, 2017 [Member]Common Stock [Member] | June 30 to August 22, 2017 [Member]Additional Paid-in Capital [Member] | Preferred Stock [Member]Series D Convertible Preferred Stock [Member] | Preferred Stock [Member]Series E Convertible Preferred Stock [Member] | Preferred Stock [Member]Series F Convertible Preferred Stock [Member] | Preferred Stock [Member]Series G Convertible Preferred Stock [Member] | Preferred Stock [Member]Series H Convertible Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Balance (in shares) at Dec. 31, 2016 | 1,233 | 500,000 | 1,233 | 244,369 | ||||||||||||||||||||||
Balance at Dec. 31, 2016 | $ 2 | $ 500 | $ 1 | $ 244 | $ 173,801,022 | $ (176,655,227) | $ (2,853,458) | |||||||||||||||||||
Conversion of convertible securities, shares (in shares) | (500,000) | 6,667 | (590) | 39,334 | (1,233) | (643) | 938 | 938 | (437) | 46,614 | (400) | 53,335 | ||||||||||||||
Conversion of convertible securities | $ (500) | $ 7 | $ 493 | $ 39 | $ (39) | $ (2) | $ (1) | $ 1 | $ 1 | $ 1 | $ 47 | $ (47) | $ 53 | $ (53) | ||||||||||||
Additional shares issued as a result of the rounding provisions of the reverse stock split of September 29, 2017 (in shares) | 4,060 | |||||||||||||||||||||||||
Additional shares issued as a result of the rounding provisions of the reverse stock split of September 29, 2017 | $ 4 | (4) | ||||||||||||||||||||||||
Stock-based compensation for options | 931,382 | 931,382 | ||||||||||||||||||||||||
Issuance of common stock under employee stock purchase plan (in shares) | 30 | |||||||||||||||||||||||||
Issuance of common stock under employee stock purchase plan | 358 | 358 | ||||||||||||||||||||||||
Net loss | (12,469,682) | (12,469,682) | ||||||||||||||||||||||||
Balance (in shares) at Dec. 31, 2017 | 538 | 501 | 394,409 | |||||||||||||||||||||||
Balance at Dec. 31, 2017 | $ 1 | $ 1 | $ 394 | 174,733,113 | (189,124,909) | (14,391,400) | ||||||||||||||||||||
Stock-based compensation for options | 161,394 | 161,394 | ||||||||||||||||||||||||
Net loss | (10,210,453) | (10,210,453) | ||||||||||||||||||||||||
Balance (in shares) at Dec. 31, 2018 | 538 | 501 | 394,409 | |||||||||||||||||||||||
Balance at Dec. 31, 2018 | $ 1 | $ 1 | $ 394 | $ 174,894,507 | $ (199,335,362) | $ (24,440,459) |
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 loss | $ (10,210,453) | $ (12,469,682) |
Adjustments to reconcile loss from continuing operations to net cash used in continuing operating activities: | ||
Benefit for income taxes | (336,598) | (83,840) |
Provision for doubtful accounts | 141,000 | 122,000 |
Depreciation for property and equipment | 5,157,789 | 5,324,969 |
Amortization for intangible assets | 1,279,261 | 1,410,018 |
Amortization for debt discount and deferred financing costs | 789,287 | 1,014,456 |
Interest added to note principal | 4,041,320 | 1,366,992 |
Accrued interest | (722,629) | 722,629 |
Stock-based compensation - Options | 161,394 | 931,382 |
Stock-based compensation - Employee stock purchase plan | 52 | |
Loss on the sale of property, plant and equipment | 42,152 | |
Deferred rent | 10,921 | (256,886) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 233,230 | (529,259) |
Prepaid expenses and other current assets | (358,162) | 192,124 |
Other assets | (10,674) | 7,599 |
Accounts payable | (975,051) | 827,236 |
Accrued expenses | (1,095,434) | 223,319 |
Deferred revenues | 51,464 | (227,070) |
Other long-term liabilities | 38,471 | |
Total Adjustments | 8,447,741 | 11,045,721 |
Net Cash Used In Continuing Operating Activities | (1,762,712) | (1,423,961) |
Net Cash (Used In) Provided By Discontinued Operating Activities | (23,949) | 21,000 |
Net Cash Used In Operating Activities | (1,786,661) | (1,402,961) |
Cash Flows From Investing Activities | ||
Acquisitions of property and equipment | (1,163,513) | (2,407,877) |
Proceeds from the sale of property, plant and equipment | 15,000 | |
Change in security deposits | 5,254 | (23,875) |
Net Cash Used In Investing Activities | (1,143,259) | (2,431,752) |
Cash Flows From Financing Activities | ||
Repayments of capital lease obligations | (465,992) | (869,055) |
Issuance of common stock under employee stock purchase plan | 306 | |
Net Cash Used In Financing Activities | (465,992) | (868,749) |
Continuing Operations | (3,371,963) | (4,724,462) |
Discontinued Operations | (23,949) | 21,000 |
Net Decrease In Cash and Cash Equivalents | (3,395,912) | (4,703,462) |
Cash and Cash Equivalents - Beginning | 7,568,982 | 12,272,444 |
Cash and Cash Equivalents - Ending | 4,173,070 | 7,568,982 |
Interest | 2,827,969 | 2,104,720 |
Income taxes | 13,311 | 16,436 |
Acquisition of property and equipment: | ||
Under capital leases | 414,849 | 285,603 |
Included in accrued expenses | 36,293 | 320,043 |
Interest added to note principal | 4,041,320 | 1,366,992 |
Conversion of Series D Convertible Preferred Stock into Series G Convertible Preferred Stock, and the conversion of Series F Convertible Preferred Stock into Series H Convertible Preferred Stock | $ 3 |
Note 1 - Organization and Natur
Note 1 - Organization and Nature of Business | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Nature of Operations [Text Block] | Note 1 . Organization and Nature of Business Towerstream Corporation (referred to as “Towerstream” or the “Company”) was incorporated in Delaware in December 1999. first five |
Note 2 - Liquidity, Going Conce
Note 2 - Liquidity, Going Concern, and Management Plans | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Liquidity and Management Plans [Text Block] | Note 2 . Liquidity, Going Concern, and Management Plans The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As of December 31, 2018, $4.2 $36.9 8 17 December 31, 2018, $199.3 one not The Company has monitored and reduced certain of its operating costs over the course of 2017 2018. no no may no In March 2018, no not In May 2018, $2,000,000 8 , Short-Term Debt $1,000,000 $1,000,000 $45,000,000 $55,000,000. |
Note 3 - Basis of Presentation
Note 3 - Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | Note 3 . Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation . Retroactive Adjustment For Reverse Stock Split September 29, 2017, 1 75 2017 Use of Estimates Cash and Cash Equivalents three Concentration of Credit Risk may not December 31, 2018, $3.9 $250,000. Accounts Receivable, Net not Property and Equipment , Net five three five three five not FCC Licenses not Long-Lived Assets may not not The FASB’s guidance on asset retirement obligations addresses financial accounting and reporting for obligations associated with the retirement of tangible long-lived assets and the associated costs. This guidance requires the recognition of an asset retirement obligation and an associated asset retirement cost when there is a legal obligation associated with the retirement of tangible long-lived assets. The Company’s network equipment is installed on both buildings in which the Company has a lease agreement and at customer locations. In both instances, the installation and removal of the Company’s equipment is not not not not Goodwill not fourth may not No 50 no December 31, 2018 2017, Fair Value of Financial Instruments three not Income Taxes not not not On December 22, 2017, 21 January 1, 2018. 740, $2,361,936 $2,232,571. Deferred Rent Advertising Costs December 31, 2018 2017 $40,000 $84,000, Stock-Based Compensation Basic and Diluted Net Loss Per Share The following common stock equivalents were excluded from the computation of diluted net loss per share of common stock because they were anti-dilutive. The exercise of these common stock equivalents would dilute earnings per share if the Company becomes profitable in the future. Years Ended December 31, 201 8 201 7 Stock options 72,807 76,601 Warrants - 2,400 Series G Convertible Preferred Stock 71,734 71,734 Series H Convertible Preferred Stock 53,440 53,440 Total 197,981 204,175 Segments one Recent Accounting Pronouncements May 2014 , No. 2014 09 2014 09 ” 2014 19 one 606, 606” 606 606 January 1, 2018 15, Revenues In February 2016, No. 2016 02 2016 02” 842 2016 02 2016 02 December 15, 2018 July 2018, No. 2018 10, 842, July 2018, No. 2018 11, 842 not January 1, 2019. not not In July 2017, No. 2017 11, 260 480 815 2017 11 two no no 260 470 20, 260 480 not December 15, 2018. December 15, 2019, December 15, 2020. not not not |
Note 4 - Discontinued Operation
Note 4 - Discontinued Operations | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | Note 4 . Discontinued Operations During the fourth 2015, fourth 2015 first 2016 March 9, 2016, three two one sixty $2,660,041 $3,837,783. The components of the balance sheet accounts presented as discontinued operations were as follows: As of December 31, 201 8 201 7 Liabilities: Accrued expenses - leases $ 1,005,073 $ 1,029,022 Total Current Liabilities $ 1,005,073 $ 1,029,022 Accrued expenses represents the estimated cost of terminating the leases associated with the Hetnets business. Accordingly, disbursements associated with such activity during the year ended December 31, 2018 |
Note 5 - Property and Equipment
Note 5 - Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | Note 5 . Property and Equipment, N et Property and equipment, net is comprised of: As of December 31, 201 8 201 7 Network and base station equipment $ 44,684,728 $ 43,573,869 Customer premise equipment 36,283,676 34,996,202 Information technology 4,893,652 4,881,332 Furniture, fixtures and other 1,715,524 1,715,524 Leasehold improvements 1,517,560 1,651,300 Accrual - equipment received not invoiced 36,293 605,646 89,131,433 87,423,873 Less: accumulated depreciation 79,053,282 73,992,893 Property and equipment, net $ 10,078,151 $ 13,430,980 Depreciation expense for the years ended December 31, 2018 2017 $5,157,789 $5,324,969, Property acquired through capital leases included within the Company’s property and equipment consists of the following: As of December 31, 2018 2017 Network and base station equipment $ 2,680,000 $ 2,629,526 Customer premise equipment 1,633,748 1,269,373 Information technology 1,860,028 1,860,028 6,173,776 5,758,927 Less: accumulated depreciation 5,122,462 4,708,697 Property acquired through capital leases, net $ 1,051,314 $ 1,050,230 |
Note 6 - Goodwill and Intangibl
Note 6 - Goodwill and Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Intangible Assets Disclosure [Text Block] | Note 6 . Goodwill and Intangible Assets , Net Goodwill and intangible assets, net consist of the following: As of December 31, 201 8 201 7 Goodwill $ 1,674,281 $ 1,674,281 Backhaul agreement 3,837,783 3,837,783 Less: accumulated amortization 3,624,573 2,345,312 Backhaul agreement, net 213,210 1,492,471 FCC licenses, net 750,000 750,000 Intangible assets, net $ 963,210 $ 2,242,471 Amortization expense for the year ended December 31, 2018 2017 $1,279,261 $1,410,018, 4, three not $213,210 December 31, 2019. |
Note 7 - Accrued Expenses
Note 7 - Accrued Expenses | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Accrued Liabilities Disclosure [Text Block] | Note 7. Accrued expenses consist of the following: As of December 31, 2018 2017 Payroll and related $ 357,118 $ 515,448 Professional services 149,891 318,979 Franchise taxes 130,000 177,384 Network 79,609 188,192 Other 57,441 101,990 Property and equipment 36,293 320,043 Total $ 810,352 $ 1,622,036 Network represents costs incurred to provide services to the Company’s customers including tower rentals, bandwidth, troubleshooting and gear removal. |
Note 8 - Short-term Debt
Note 8 - Short-term Debt | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | Note 8. Short -Term Debt Short-term debt (callable) consists of the following: As of December 31, 201 8 201 7 Principal $ 38,699,308 $ 34,657,987 Unamortized debt discount - (789,287 ) Total $ 38,699,308 $ 33,868,700 In October 2014, $35,000,000 $33,950,000 3% This Note accrues interest on the basis of a 360 a) A rate equal to the greater of: i) the sum of the one 7% 8% one 2.50% December 31, 2018. b) A rate of 4% This Note is secured by a first The Note contains representations and warranties by the Company and the Lender, certain indemnification provisions in favor of the Lender and customary covenants (including limitations on other debt, liens, acquisitions, investments and dividends), and events of default (including payment defaults, breaches of covenants, a material impairment in the Lender’s security interest or in the collateral, and events relating to bankruptcy or insolvency). The Note contains several restrictive covenants and the most significant of which requires the Company to maintain a minimum cash balance of $6,500,000 5% may Effective January 26, 2018, October 16, 2014 March 30, 2018 ( $6,500,000 “$6,500,000 $6,500,000 $4,000,000 February 28, 2018 6.1 December 31, 2017 March 30, 2018 April 15, 2018. Effective April 15, 2018, second 6.1 June 30, 2018. June 30, 2018 ( $6,500,000 $6,500,000 $3,000,000 October 16, 2019 December 31, 2018 ( On May 24, 2018, May 31, 2018 April 30, 2018 May 15, 2018. Effective August 20, 2018, 6.1 September 30, 2018. June 30, 2018 September 30, 2018 ( On October 24, 2018, September 30, 2018 November 15, 2018 ( third Effective December 31, 2018, November 15, 2018 January 31, 2019 ( fourth December 31, 2018 January 31, 2019. The Company has the option to prepay the Note in the minimum principal amount of $5,000,000 $1,000,000 not The Company recorded interest expense of $6,077,223 $4,142,046 December 31, 2018 2017, $2,035,903 $2,775,054 $4,041,320 $1,366,992 December 31, 2018 2017, The interest rate for the fourth 2018 18.24% 9.24%, 5.0%, 4.0% October 24, 2018, $2,605,320 17, Subsequent Events January 2019. The Company recorded amortization expense related to the debt discount of $789,287 $1,014,456 December 31, 2018 2017, |
Note 9 - Other Long-term Liabil
Note 9 - Other Long-term Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Other Liabilities Disclosure [Text Block] | Note 9. Other Long-Term Liabilities Other long-term liabilities consist of the following: As of December 31, 201 8 201 7 Deferred rent $ 347,554 $ 417,605 Deferred taxes - 336,598 Deferred revenues 38,471 - Total $ 386,025 $ 754,203 |
Note 10 - Capital Stock
Note 10 - Capital Stock | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | Note 10 . Capital Stock The Company is authorized to issue up to 200,000,000 $0.001. one may no may may The Company is authorized to issue up to 5,000,000 $0.001 may one one may The Company had created Series A Preferred Stock during the year ended December 31, 2010, December 31, 2016, December 31, 2017, December 31, 2018. December 31, 2018 2017: Designated Issued and Outstanding 2018 2017 Series A Preferred Stock 350,000 - - Series B Convertible Preferred Stock 892,857 - - Series C Convertible Preferred Stock 680,000 - - Series D Convertible Preferred Stock 4,421 - - Series E Convertible Preferred Stock 2,000,000 - - Series F Convertible Preferred Stock 1,233 - - Series G Convertible Preferred Stock 938 538 538 Series H Convertible Preferred Stock 938 501 501 Series I Preferred Stock 100 100 - 3,930,487 1,139 1,039 The preferences, rights, and limitations of each series of preferred stock, and equity activity for the years ended December 31, 2018 2017, a) On January 9, 2017, 500,000 6,667 b) On various dates from January 26, 2017 April 13, 2017, 590 39,334 c) On May 26, 2017, 1,233 643 938 938 The key preferences, rights, and limitations of the Series G Preferred Stock and Series H Preferred Stock, are as follows: i. The Stated Value of each share of Series G Preferred Stock and Series H Preferred Stock is $1,000; ii. Series G Preferred Stock and Series H Preferred Stock may $1,000 $7.50 $1,000 $9.38 iii. In the event of a liquidation event, each share of Series G Preferred Stock and Series H Preferred Stock will be entitled to a per share preferential payment equal to 100% iv. The Company is prohibited from effecting a conversion of the Series G Preferred Stock and Series H Preferred Stock to the extent that, as a result of such conversion, the holder would beneficially own more than 9.99% may not Additionally, upon the issuance of the Series G Preferred Stock and Series H Preferred Stock, the Company recorded a beneficial conversion feature and a deemed dividend in the amount of $1,905,570. e) On various dates from May 30, 2017 June 29, 2017, 437 46,614 f) On various dates from June 30, 2017 August 22, 2017, 400 53,335 g) On September 29, 2017 1 75 h) On May 24, 2018, 2,400 1:20 1:75 July 2016 September 2017) 100 no i. Shares of Series I Preferred Stock are not ii. In the event of a liquidation or fundamental transaction, a holder of Series I Preferred Stock shall be redeemed and shall be entitled to receive, per share of Series I Preferred Stock, in cash out of the assets of the Company, whether from capital or from earnings available for distribution to its shareholders (the “Liquidation Funds”), a one x $1,025,437 $2 2018 25% iii. All shares of capital stock of the Company (when and if issued), except for shares of Series G Convertible Preferred Stock and shares of Series H Convertible Preferred Stock outstanding as of May 24, 2018, iv. Holders of the Series I Preferred Stock shall have no one The Series I Preferred Stock was accounted for under Section 480 10 S99 480 No. 2009 04 2009 04” 2009 04, not |
Note 11 - Stock Option Plans an
Note 11 - Stock Option Plans and Warrants | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Note 11 . Stock Option Plans and Warrants Stock Options Plans The 2007 “2007 January 2007 2007 1,603. 887 2007 December 31, 2018. The 2007 “2007 May 2007 1,667 2007 1,667 3,334 November 2012. 2,563 2007 December 31, 2018. Options granted under both the 2007 2007 ten not December 31, 2018 2007 2007 1,487 The 2008 “2008 August 2008 667 November 2013, 2008 1,334. 1,174 2008 December 31, 2018. 2008 ten December 31, 2018 2008 160 The 2016 “2016 September 2016 9,094 2016 9,094 19,134 December 2016. February 2017, 2016 19,134 33,618. 69,184 2016 December 31, 2018. The 2016 “2016 December 2016 3,334 436 2016 December 31, 2018. Options granted under both the 2016 2016 ten not The Company uses the Black-Scholes option pricing model to value options issued to employees, directors and consultants. Compensation expense, including the estimated effect of forfeitures, is recognized over the period of service, generally the vesting period. Stock-based compensation for the amortization of stock options granted under the Company’s stock option plans totaled $161,394 $931,382 December 31, 2018 2017, The unamortized amount of stock options expense was $61,432 December 31, 2018 1.0 The fair values of stock option grants were calculated on the dates of grant using the Black-Scholes option pricing model and the following weighted average assumptions: Years Ended December 31, 201 8 201 7 Risk-free interest rate 2.7% 1.6% to 1.7% Expected volatility 105% 110% to 113% Expected life (in years) 4.2 4.2 Expected dividend yield - - Estimated forfeiture rates 20% 20% The risk-free interest rate was based on rates established by the Federal Reserve. The expected volatility was based upon the historical volatility for the Company’s common stock. The Company utilized historical data to determine the expected life of stock options. The dividend yield reflected the fact that the Company has not not Option transactions under the stock option plans during the years ended December 31, 2018 2017 Number Weighted Average Exercise Price Outstanding as of January 1, 2017 28,232 $ 404.82 Granted during 2017 51,090 12.77 Exercised - - Forfeited /expired (2,721 ) 1,134.23 Outstanding as of December 31, 2017 76,601 117.42 Granted during 2018 102 2.40 Exercised - - Forfeited /expired (3,896 ) 134.50 Outstanding as of December 31, 2018 72,807 $ 116.53 Exercisable as of December 31, 2018 51,952 $ 156.83 Grants under the stock option plans were as follows: For the Years Ended December 31, 201 8 201 7 Annual grants to outside directors 102 170 Executive grants - 50,586 Non-employee grants - 334 Total 102 51,090 Options granted during the reporting periods had terms ranging from five ten one one two one two one three one one three six one On January 24, 2017, 27,162 $12.75 ten 4,178 January 24, 2018; 8,358 eight twenty-four January 24, 2020; 7,313 three 7,313 $15,000,000. Certain stock options awarded to Ernest Ortega, Chief Executive Officer, in conjunction with his 2017 $140,708 December 31, 2017. not December 31, 2018 2017, On February 3, 2017, 15,868 $13.50 ten 6,676 5,854 3,338 100% eight May 15, 2017 May 15, 2018, May 15, 2018. On May 15, 2017, 2% May 15, 2017, 7,556 25% one three January 5, 2018 Forfeited or expired options under the stock option plans were as follows: For the Years Ended December 31, 201 8 201 7 Employee terminations 3,756 2,619 Expired 140 102 Total 3,896 2,721 The weighted-average fair values of the options granted during 2018 2017 $1.76 $9.65, 72,807 December 31, 2018 $2.40 $7,845.00 7.9 51,952 December 31, 2018 $2.40 $7,845.00 7.9 As of December 31, 2018, no December 31, 2018, $2.10 Stock Warrants Warrant transactions during the years ended December 31, 2018 2017 Number Weighted Average Exercise Price Outstanding as of January 1, 2017 and 2018 2,400 $ 1,265.25 Exchanged during 2018 (2,400 ) 1,265.25 Outstanding and exercisable as of December 31, 2018 - $ - On May 24, 2018, 2,400 100 10, Capital Stock |
Note 12 - Employee Benefit Prog
Note 12 - Employee Benefit Programs | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Employee Stock Purchase Plan Disclosure [Text Block] | Note 12 . Employee Benefit Programs The Company has established a 401 “401 twenty-one 30 401 No December 31, 2018 2017. Under the Company’s 2010 15% 334 December 31, 2018 2017, zero 30 zero $358, zero $52 15% December 31, 2018 2017, |
Note 13 - Income Taxes
Note 13 - Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | Note 13 . Income Taxes Provision The provision for income taxes consists of the following: Years Ended December 31, 201 8 201 7 Current Federal $ - $ State - - Total current - - Deferred - Federal (2,213,273 ) (896,114 ) State (632,364 ) (256,033 ) Change in valuation allowance 2,509,039 1,068,307 Total deferred (336,598 ) (83,840 ) Provision for income taxes $ (336,598 ) $ (83,840 ) The provision for income taxes using the U.S. Federal statutory tax rate as compared to the Company’s effective tax rate is summarized as follows: Years Ended December 31, 201 8 201 7 U.S. federal statutory rate (21.0 )% (34.0 )% State taxes (6.0 %) (5.0 )% Permanent differences - % 0.1 % Change of federal deferred tax rate - % 29.7 % Change in valuation allowance 23.8 % 8.5 % Effective tax rate (3.2 )% (0.7 )% The Company files income tax returns for Towerstream Corporation and its subsidiaries in the U.S. federal and various state principle jurisdictions. As of December 31, 2018, 2015 2018 no Impact of Tax Cuts and Jobs Act On December 22, 2017, 21%, December 31, 2017. December 31, 2017 $3,940,628 $203,738. $3,791,030 118 2018. no The Company’s deferred tax assets (liabilities) consisted of the effects of temporary differences attributable to the following: Years Ended December 31, 201 8 201 7 Deferred tax assets Net operating loss carryforwards $ 4,921,264 $ 4,345,624 Stock-based compensation 2,324,392 2,280,815 Intangible assets 1,280,812 1,094,799 Debt discount 948,572 831,717 Allowance for doubtful accounts 41,611 25,889 Interest expense limitation 1,515,513 - Depreciation 316,797 - Other 286,800 287,571 Total deferred tax assets 11,635,761 8,866,415 Valuation allowance (11,253,638 ) (8,744,600 ) Deferred tax assets, net of valuation allowance 382,123 121,815 Deferred tax liabilities Depreciation - (121,815 ) Intangible assets (382,123 ) (336,597 ) Total deferred tax liabilities (382,123 ) (458,412 ) Net deferred tax liabilities $ - $ (336,597 ) Accounting for Uncertainty in Income Taxes ASC Topic 740 740 As of December 31, 2018 2017, no No December 31, 2018 2017. not twelve NOL Limitations The Company’s utilization of net operating loss (“NOL”) carryforwards is subject to an annual limitation due to ownership changes that have occurred previously or that could occur in the future as provided in Section 382 382 50% 382, The NOLs as of December 31, 2018 2017 382 2016. no 382 December 31, 2018 2017. December 31, 2018 2017, $2,132,000 $8,536,000, December 31, 2018 2017, $18,227,000 $16,095,000, December 31, 2027. 2018 $2,132,000 not Valuation Allowance In assessing the realizability of deferred tax assets, the Company has considered whether it is more likely than not not December 31, 2018 2017. $2,509,038 $1,068,307, December 31, 2018 2017. |
Note 14 - Fair Value Measuremen
Note 14 - Fair Value Measurement | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | Note 14 . Fair Value Measurement The FASB’s accounting standard for fair value measurements establishes a valuation hierarchy for disclosure of the inputs to valuation used to measure fair value. This hierarchy prioritizes the inputs into three 1 2 3 Cash and cash equivalents are measured at fair value using quoted market prices and are classified within Level 1 no December 31, 2018. Total Carrying Value Quoted prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) December 31, 2018 $ 4,173,070 $ 4,173,070 $ - $ - December 31, 2017 $ 7,568,982 $ 7,568,982 $ - $ - |
Note 15 - Revenues
Note 15 - Revenues | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | Note 1 5 . Revenues In May 2014 , 606, 606 606 January 1, 2018 December 31, 2018, $131,877, 606. not 606 not 2017 Revenue Recognition Generally, the Company considers all revenues as arising from contracts with customers. Prior to 2018, 104, Beginning in 2018, five 606: Step 1 Step 2 not Step 3 not Step 4 one Step 5 Disaggregation of Revenue We provide fixed wireless business internet service to companies ranging from small businesses to fortune 500 no one three no Deferred Revenues Customers are billed monthly in advance. Deferred revenues are recognized for that portion of monthly charges not The Company also defers installation fees billed to the customer and commission costs associated with obtaining new contracts. The installation fees and commission costs are amortized over the average contract term of new contracts. As of December 31, 2018, $131,877 $93,406 $38,471 $178,333 $136,410 $41,923 |
Note 16 - Commitments
Note 16 - Commitments | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Commitments Disclosure [Text Block] | Note 16. Operating Lease Obligations The Company has entered into operating leases related to roof rights, cellular towers, office space, and equipment leases under various non-cancelable agreements expiring on various dates through March 2025. one fifteen not not As of December 31, 2018, Years Ending December 31, 2019 $ 7,286,466 2020 5,231,865 2021 3,134,185 2022 1,918,867 2023 681,014 Thereafter 311,412 Total $ 18,563,809 Rent expenses were as follows: Year Ended December 31, 201 8 201 7 Points of Presence $ 9,071,856 $ 8,693,892 Corporate offices 248,045 220,309 Other 966,533 935,293 Total $ 10,286,434 $ 9,849,494 Rent expenses related to Points of Presence were included in infrastructure and access in the Company’s consolidated statements of operations. Rent expense related to our corporate offices was allocated between general and administrative, sales and marketing, customer support, and network operations expense in the Company’s consolidated statements of operations. Other rent expenses were included in network operations within the Company’s consolidated statements of operations. In April 2017, April 15, 2017 December 31, 2017 $32,021 June 2017, second June 1, 2017 December 31, 2017 $20,734 not December 2017. In October 2017, January 1, 2018 December 31, 2024 five December 31, 2024. $183,256 2018 2.5% $213,422 2024. Capital Lease Obligations The Company has entered into capital leases to acquire property and equipment expiring through January 2021. December 31, 2018, Years Ending December 31, 2019 $ 388,501 2020 300,374 2021 9,523 Sub-Total 698,398 Less: Interest expense 60,676 Total capital lease obligations $ 637,722 Current $ 341,975 Long-Term $ 295,747 |
Note 17 - Subsequent Events
Note 17 - Subsequent Events | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | Note 1 7 Subsequent Events On January 31, 2019, January 31, 2019 April 30, 2019 ( $6,500,000 $6,500,000 $2,000,000 March 31, 2019 may January 31, 2019 April 30, 2019. may |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation . |
Stockholders' Equity, Policy [Policy Text Block] | Retroactive Adjustment For Reverse Stock Split September 29, 2017, 1 75 2017 |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents three |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentration of Credit Risk may not December 31, 2018, $3.9 $250,000. |
Receivables, Policy [Policy Text Block] | Accounts Receivable, Net not |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment , Net five three five three five not |
Goodwill and Intangible Assets, Intangible Assets, Indefinite-Lived, Policy [Policy Text Block] | FCC Licenses not |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Long-Lived Assets may not not The FASB’s guidance on asset retirement obligations addresses financial accounting and reporting for obligations associated with the retirement of tangible long-lived assets and the associated costs. This guidance requires the recognition of an asset retirement obligation and an associated asset retirement cost when there is a legal obligation associated with the retirement of tangible long-lived assets. The Company’s network equipment is installed on both buildings in which the Company has a lease agreement and at customer locations. In both instances, the installation and removal of the Company’s equipment is not not not not |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | Goodwill not fourth may not No 50 no December 31, 2018 2017, |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value of Financial Instruments three not |
Income Tax, Policy [Policy Text Block] | Income Taxes not not not On December 22, 2017, 21 January 1, 2018. 740, $2,361,936 $2,232,571. |
Lessee, Leases [Policy Text Block] | Deferred Rent |
Advertising Costs, Policy [Policy Text Block] | Advertising Costs December 31, 2018 2017 $39,727 $84,000, |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock-Based Compensation |
Earnings Per Share, Policy [Policy Text Block] | Basic and Diluted Net Loss Per Share The following common stock equivalents were excluded from the computation of diluted net loss per share of common stock because they were anti-dilutive. The exercise of these common stock equivalents would dilute earnings per share if the Company becomes profitable in the future. Years Ended December 31, 201 8 201 7 Stock options 72,807 76,601 Warrants - 2,400 Series G Convertible Preferred Stock 71,734 71,734 Series H Convertible Preferred Stock 53,440 53,440 Total 197,981 204,175 |
Segment Reporting, Policy [Policy Text Block] | Segments one |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements May 2014 , No. 2014 09 2014 09 ” 2014 19 one 606, 606” 606 606 January 1, 2018 15, Revenues In February 2016, No. 2016 02 2016 02” 842 2016 02 2016 02 December 15, 2018 July 2018, No. 2018 10, 842, July 2018, No. 2018 11, 842 not January 1, 2019. not not In July 2017, No. 2017 11, 260 480 815 2017 11 two no no 260 470 20, 260 480 not December 15, 2018. December 15, 2019, December 15, 2020. not not not |
Note 3 - Basis of Presentatio_2
Note 3 - Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | Years Ended December 31, 201 8 201 7 Stock options 72,807 76,601 Warrants - 2,400 Series G Convertible Preferred Stock 71,734 71,734 Series H Convertible Preferred Stock 53,440 53,440 Total 197,981 204,175 |
Note 4 - Discontinued Operati_2
Note 4 - Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Discontinued Operation, Schedule of Amounts Recognized in Balance Sheet [Table Text Block] | As of December 31, 201 8 201 7 Liabilities: Accrued expenses - leases $ 1,005,073 $ 1,029,022 Total Current Liabilities $ 1,005,073 $ 1,029,022 |
Note 5 - Property and Equipme_2
Note 5 - Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | As of December 31, 201 8 201 7 Network and base station equipment $ 44,684,728 $ 43,573,869 Customer premise equipment 36,283,676 34,996,202 Information technology 4,893,652 4,881,332 Furniture, fixtures and other 1,715,524 1,715,524 Leasehold improvements 1,517,560 1,651,300 Accrual - equipment received not invoiced 36,293 605,646 89,131,433 87,423,873 Less: accumulated depreciation 79,053,282 73,992,893 Property and equipment, net $ 10,078,151 $ 13,430,980 |
Schedule of Capital Leased Assets [Table Text Block] | As of December 31, 2018 2017 Network and base station equipment $ 2,680,000 $ 2,629,526 Customer premise equipment 1,633,748 1,269,373 Information technology 1,860,028 1,860,028 6,173,776 5,758,927 Less: accumulated depreciation 5,122,462 4,708,697 Property acquired through capital leases, net $ 1,051,314 $ 1,050,230 |
Note 6 - Goodwill and Intangi_2
Note 6 - Goodwill and Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | As of December 31, 201 8 201 7 Goodwill $ 1,674,281 $ 1,674,281 Backhaul agreement 3,837,783 3,837,783 Less: accumulated amortization 3,624,573 2,345,312 Backhaul agreement, net 213,210 1,492,471 FCC licenses, net 750,000 750,000 Intangible assets, net $ 963,210 $ 2,242,471 |
Note 7 - Accrued Expenses (Tabl
Note 7 - Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | Accrued expenses consist of the following: As of December 31, 2018 2017 Payroll and related $ 357,118 $ 515,448 Professional services 149,891 318,979 Franchise taxes 130,000 177,384 Network 79,609 188,192 Other 57,441 101,990 Property and equipment 36,293 320,043 Total $ 810,352 $ 1,622,036 |
Note 8 - Short-term Debt (Table
Note 8 - Short-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Schedule of Long-term Debt Instruments [Table Text Block] | As of December 31, 201 8 201 7 Principal $ 38,699,308 $ 34,657,987 Unamortized debt discount - (789,287 ) Total $ 38,699,308 $ 33,868,700 |
Note 9 - Other Long-term Liab_2
Note 9 - Other Long-term Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Other Liabilities [Table Text Block] | As of December 31, 201 8 201 7 Deferred rent $ 347,554 $ 417,605 Deferred taxes - 336,598 Deferred revenues 38,471 - Total $ 386,025 $ 754,203 |
Note 10 - Capital Stock (Tables
Note 10 - Capital Stock (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Preferred Stock Designated, Issued, and Outstanding [Table Text Block] | Designated Issued and Outstanding 2018 2017 Series A Preferred Stock 350,000 - - Series B Convertible Preferred Stock 892,857 - - Series C Convertible Preferred Stock 680,000 - - Series D Convertible Preferred Stock 4,421 - - Series E Convertible Preferred Stock 2,000,000 - - Series F Convertible Preferred Stock 1,233 - - Series G Convertible Preferred Stock 938 538 538 Series H Convertible Preferred Stock 938 501 501 Series I Preferred Stock 100 100 - 3,930,487 1,139 1,039 |
Note 11 - Stock Option Plans _2
Note 11 - Stock Option Plans and Warrants (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Years Ended December 31, 201 8 201 7 Risk-free interest rate 2.7% 1.6% to 1.7% Expected volatility 105% 110% to 113% Expected life (in years) 4.2 4.2 Expected dividend yield - - Estimated forfeiture rates 20% 20% |
Share-based Compensation, Stock Options, Activity [Table Text Block] | Number Weighted Average Exercise Price Outstanding as of January 1, 2017 28,232 $ 404.82 Granted during 2017 51,090 12.77 Exercised - - Forfeited /expired (2,721 ) 1,134.23 Outstanding as of December 31, 2017 76,601 117.42 Granted during 2018 102 2.40 Exercised - - Forfeited /expired (3,896 ) 134.50 Outstanding as of December 31, 2018 72,807 $ 116.53 Exercisable as of December 31, 2018 51,952 $ 156.83 |
Schedule Of Grants Under Stock Option Plan Details [Table Text Block] | For the Years Ended December 31, 201 8 201 7 Annual grants to outside directors 102 170 Executive grants - 50,586 Non-employee grants - 334 Total 102 51,090 |
Schedule Of Forfeited Or Expired Options Under Stock Option Plans [Table Text Block] | For the Years Ended December 31, 201 8 201 7 Employee terminations 3,756 2,619 Expired 140 102 Total 3,896 2,721 |
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block] | Number Weighted Average Exercise Price Outstanding as of January 1, 2017 and 2018 2,400 $ 1,265.25 Exchanged during 2018 (2,400 ) 1,265.25 Outstanding and exercisable as of December 31, 2018 - $ - |
Note 13 - Income Taxes (Tables)
Note 13 - Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Years Ended December 31, 201 8 201 7 Current Federal $ - $ State - - Total current - - Deferred - Federal (2,213,273 ) (896,114 ) State (632,364 ) (256,033 ) Change in valuation allowance 2,509,039 1,068,307 Total deferred (336,598 ) (83,840 ) Provision for income taxes $ (336,598 ) $ (83,840 ) |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Years Ended December 31, 201 8 201 7 U.S. federal statutory rate (21.0 )% (34.0 )% State taxes (6.0 %) (5.0 )% Permanent differences - % 0.1 % Change of federal deferred tax rate - % 29.7 % Change in valuation allowance 23.8 % 8.5 % Effective tax rate (3.2 )% (0.7 )% |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Years Ended December 31, 201 8 201 7 Deferred tax assets Net operating loss carryforwards $ 4,921,264 $ 4,345,624 Stock-based compensation 2,324,392 2,280,815 Intangible assets 1,280,812 1,094,799 Debt discount 948,572 831,717 Allowance for doubtful accounts 41,611 25,889 Interest expense limitation 1,515,513 - Depreciation 316,797 - Other 286,800 287,571 Total deferred tax assets 11,635,761 8,866,415 Valuation allowance (11,253,638 ) (8,744,600 ) Deferred tax assets, net of valuation allowance 382,123 121,815 Deferred tax liabilities Depreciation - (121,815 ) Intangible assets (382,123 ) (336,597 ) Total deferred tax liabilities (382,123 ) (458,412 ) Net deferred tax liabilities $ - $ (336,597 ) |
Note 14 - Fair Value Measurem_2
Note 14 - Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | Total Carrying Value Quoted prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) December 31, 2018 $ 4,173,070 $ 4,173,070 $ - $ - December 31, 2017 $ 7,568,982 $ 7,568,982 $ - $ - |
Note 16 - Commitments (Tables)
Note 16 - Commitments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Years Ending December 31, 2019 $ 7,286,466 2020 5,231,865 2021 3,134,185 2022 1,918,867 2023 681,014 Thereafter 311,412 Total $ 18,563,809 |
Schedule of Rent Expense [Table Text Block] | Year Ended December 31, 201 8 201 7 Points of Presence $ 9,071,856 $ 8,693,892 Corporate offices 248,045 220,309 Other 966,533 935,293 Total $ 10,286,434 $ 9,849,494 |
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block] | Years Ending December 31, 2019 $ 388,501 2020 300,374 2021 9,523 Sub-Total 698,398 Less: Interest expense 60,676 Total capital lease obligations $ 637,722 Current $ 341,975 Long-Term $ 295,747 |
Note 2 - Liquidity, Going Con_2
Note 2 - Liquidity, Going Concern, and Management Plans (Details Textual) - USD ($) | 1 Months Ended | ||||
May 31, 2018 | Dec. 31, 2018 | May 24, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash and Cash Equivalents, at Carrying Value, Ending Balance | $ 4,173,070 | $ 7,568,982 | $ 12,272,444 | ||
Working Capital | (36,900,000) | ||||
Retained Earnings (Accumulated Deficit), Ending Balance | $ (199,335,362) | $ (189,124,909) | |||
Management Incentive Plan, Cash Bonuses, Potential Payout Amount | $ 2,000,000 | $ 2,000,000 | |||
Management Incentive Plan, Cash Bonuses, Payout Upon Triggering Sale | 1,000,000 | ||||
Management Incentive Plan, Cash Bonuses, Additional Payout Earned Proportionately for Triggering Sale | 1,000,000 | ||||
Minimum [Member] | |||||
Management Incentive Plan, Cash Bonuses, Triggering Sales Amount | 45,000,000 | ||||
Maximum [Member] | |||||
Management Incentive Plan, Cash Bonuses, Triggering Sales Amount | $ 55,000,000 |
Note 3 - Basis of Presentatio_3
Note 3 - Basis of Presentation and Summary of Significant Accounting Policies (Details Textual) | Jan. 01, 2018USD ($) | Sep. 29, 2017 | Sep. 30, 2017 | Jul. 31, 2016 | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Cash, Uninsured Amount | $ 3,900,000 | |||||
Cash, FDIC Insured Amount | $ 250,000 | |||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 34.00% | ||||
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | $ 2,361,936 | |||||
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | $ 2,232,571 | |||||
Advertising Expense | $ 40,000 | $ 84,000 | ||||
Number of Operating Segments | 1 | |||||
Leasehold Improvements [Member] | ||||||
Property, Plant and Equipment, Useful Life | 5 years | |||||
Furniture and Fixtures [Member] | Minimum [Member] | ||||||
Property, Plant and Equipment, Useful Life | 3 years | |||||
Furniture and Fixtures [Member] | Maximum [Member] | ||||||
Property, Plant and Equipment, Useful Life | 5 years | |||||
Information Technology [Member] | Minimum [Member] | ||||||
Property, Plant and Equipment, Useful Life | 3 years | |||||
Information Technology [Member] | Maximum [Member] | ||||||
Property, Plant and Equipment, Useful Life | 5 years | |||||
Reverse Stock Split [Member] | ||||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 75 | 75 | 20 |
Note 3 - Basis of Presentatio_4
Note 3 - Basis of Presentation and Summary of Significant Accounting Policies - Antidilutive Shares Excluded From Computation of EPS (Details) - shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Antidilutive Securities Excluded From Computation of Earnings Per Share, Amount (in shares) | 197,981 | 204,175 |
Equity Option [Member] | ||
Antidilutive Securities Excluded From Computation of Earnings Per Share, Amount (in shares) | 72,807 | 76,601 |
Warrant [Member] | ||
Antidilutive Securities Excluded From Computation of Earnings Per Share, Amount (in shares) | 2,400 | |
Series G Convertible Preferred Stock [Member] | ||
Antidilutive Securities Excluded From Computation of Earnings Per Share, Amount (in shares) | 71,734 | 71,734 |
Series H Convertible Preferred Stock [Member] | ||
Antidilutive Securities Excluded From Computation of Earnings Per Share, Amount (in shares) | 53,440 | 53,440 |
Note 4 - Discontinued Operati_3
Note 4 - Discontinued Operations (Details Textual) - Shared Wireless Business [Member] | Mar. 09, 2016USD ($) |
Asset Purchase Agreement, Term | 3 years |
Asset Purchase Agreement, Number of One Year Renewals | 2 |
Asset Purchase Agreement, Cancellation Notice | 60 days |
Disposal Group, Including Discontinued Operation, Assets, Total | $ 2,660,041 |
Disposal Group, Including Discontinued Operation, Consideration | $ 3,837,783 |
Note 4 - Discontinued Operati_4
Note 4 - Discontinued Operations - Components of Balance Sheet Accounts (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Liabilities: | ||
Total Current Liabilities | $ 1,005,073 | $ 1,029,022 |
Network [Member] | ||
Liabilities: | ||
Accrued expenses - leases | $ 1,005,073 | $ 1,029,022 |
Note 5 - Property and Equipme_3
Note 5 - Property and Equipment, Net (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Depreciation, Total | $ 5,157,789 | $ 5,324,969 |
Note 5 - Property and Equipme_4
Note 5 - Property and Equipment, Net - Property and Equipment (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant, and Equipment, Gross | $ 89,131,433 | $ 87,423,873 |
Less: accumulated depreciation | 79,053,282 | 73,992,893 |
Property and equipment, net | 10,078,151 | 13,430,980 |
Network and Base Station Equipment [Member] | ||
Property, Plant, and Equipment, Gross | 44,684,728 | 43,573,869 |
Customer Premise Equipment [Member] | ||
Property, Plant, and Equipment, Gross | 36,283,676 | 34,996,202 |
Information Technology [Member] | ||
Property, Plant, and Equipment, Gross | 4,893,652 | 4,881,332 |
Furniture and Fixtures [Member] | ||
Property, Plant, and Equipment, Gross | 1,715,524 | 1,715,524 |
Leasehold Improvements [Member] | ||
Property, Plant, and Equipment, Gross | 1,517,560 | 1,651,300 |
Equipment Received but Not Invoiced [Member] | ||
Property, Plant, and Equipment, Gross | $ 36,293 | $ 605,646 |
Note 5 - Property and Equipme_5
Note 5 - Property and Equipment, Net - Property Acquired Through Capital Leases (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Capital Leased Assets, Gross | $ 6,173,776 | $ 5,758,927 |
Less: accumulated depreciation | 5,122,462 | 4,708,697 |
Property acquired through capital leases, net | 1,051,314 | 1,050,230 |
Network and Base Station Equipment [Member] | ||
Capital Leased Assets, Gross | 2,680,000 | 2,629,526 |
Customer Premise Equipment [Member] | ||
Capital Leased Assets, Gross | 1,633,748 | 1,269,373 |
Information Technology [Member] | ||
Capital Leased Assets, Gross | $ 1,860,028 | $ 1,860,028 |
Note 6 - Goodwill and Intangi_3
Note 6 - Goodwill and Intangible Assets, Net (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Amortization of Intangible Assets, Total | $ 1,279,261 | $ 1,410,018 |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | $ 213,210 | |
Time Warner Cable [Member] | Backhaul Agreement [Member] | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 3 years |
Note 6 - Goodwill and Intangi_4
Note 6 - Goodwill and Intangible Assets, Net - Intangible Assets and Goodwill (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Goodwill | $ 1,674,281 | $ 1,674,281 |
FCC licenses, net | 750,000 | 750,000 |
Intangible assets, net | 963,210 | 2,242,471 |
Backhaul Agreement [Member] | ||
Backhaul agreement | 3,837,783 | 3,837,783 |
Backhaul agreement, net | 213,210 | 1,492,471 |
Customer Relationships [Member] | ||
Less: accumulated amortization | $ 3,624,573 | $ 2,345,312 |
Note 7 - Accrued Expenses - Acc
Note 7 - Accrued Expenses - Accrued Expenses (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Accrued Liabilities, Current | $ 810,352 | $ 1,622,036 |
Payroll and Related [Member] | ||
Accrued Liabilities, Current | 357,118 | 515,448 |
Professional Services [Member] | ||
Accrued Liabilities, Current | 149,891 | 318,979 |
Franchise Taxes [Member] | ||
Accrued Liabilities, Current | 130,000 | 177,384 |
Network [Member] | ||
Accrued Liabilities, Current | 79,609 | 188,192 |
Other Accrued Liabilities [Member] | ||
Accrued Liabilities, Current | 57,441 | 101,990 |
Property and Equipment [Member] | ||
Accrued Liabilities, Current | $ 36,293 | $ 320,043 |
Note 8 - Short-term Debt (Detai
Note 8 - Short-term Debt (Details Textual) - USD ($) | Oct. 24, 2018 | Apr. 15, 2018 | Jan. 26, 2018 | Oct. 31, 2014 | Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Amortization of Debt Issuance Costs and Discounts, Total | $ 789,287 | $ 1,014,456 | |||||
Melody Business Finance LLC [Member] | Secured Debt [Member] | |||||||
Debt Instrument, Face Amount | $ 35,000,000 | ||||||
Proceeds from Issuance of Long-term Debt, Total | $ 33,950,000 | ||||||
Debt Instrument, Original Issue Discount Rate | 3.00% | ||||||
Paid In Kind Interest Stated Rate | 4.00% | ||||||
Debt Covenant, Cash and Cash Equivalents, Minimum Balance | $ 6,500,000 | ||||||
Debt Instrument Additional Interes Rate In The Event Of Default | 5.00% | ||||||
Debt Covenant, Deposit and Securities Accounts, Minimum Balance, Waived | $ 6,500,000 | $ 6,500,000 | |||||
Debt Covenant, Deposit and Securities Accounts, Minimum Balance, Termination of Forbearance Period | $ 3,000,000 | $ 4,000,000 | |||||
Debt Instrument Prepayment Minimum Principal Amount | $ 5,000,000 | ||||||
Debt Instrument, Prepayment, Integral Amounts Beyond the Minimum Principal Amount | $ 1,000,000 | ||||||
Interest Expense, Total | 6,077,223 | 4,142,046 | |||||
Interest Paid, Including Capitalized Interest, Operating and Investing Activities, Total | 2,035,903 | 2,775,054 | |||||
Notes Assumed | 4,041,320 | 1,366,992 | |||||
Debt Instrument, Interest Rate During Period | 18.24% | ||||||
Debt Instrument, Cash Interest Rate | 9.24% | ||||||
Debt Instrument, Default Interest Rate Premium | 5.00% | ||||||
Debt Instrument, Paid-in-Kind Interest Rate | 4.00% | ||||||
Debt Instrument, Increase, Accrued Interest | $ 2,605,320 | ||||||
Amortization of Debt Issuance Costs and Discounts, Total | $ 789,287 | $ 1,014,456 | |||||
Melody Business Finance LLC [Member] | Secured Debt [Member] | If Rate Is Greater Than LIBOR Rate [Member] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | ||||||
Melody Business Finance LLC [Member] | Secured Debt [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 7.00% | ||||||
Debt Instrument, Reference Rate | 2.50% |
Note 8 - Short-term Debt - Summ
Note 8 - Short-term Debt - Summary of Debt (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Principal | $ 38,699,308 | $ 34,657,987 |
Unamortized debt discount | (789,287) | |
Total | $ 38,699,308 | $ 33,868,700 |
Note 9 - Other Long-term Liab_3
Note 9 - Other Long-term Liabilities - Other Liabilities, Current and Noncurrent (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred rent | $ 347,554 | $ 417,605 |
Deferred taxes | 336,598 | |
Deferred revenues | 38,471 | |
Total | $ 386,025 | $ 754,203 |
Note 10 - Capital Stock (Detail
Note 10 - Capital Stock (Details Textual) | May 24, 2018USD ($)shares | Sep. 29, 2017 | May 26, 2017USD ($)$ / sharesshares | Jan. 09, 2017shares | Sep. 30, 2017 | Jun. 29, 2017shares | Jul. 31, 2016 | Aug. 22, 2017shares | Apr. 13, 2017shares | Dec. 31, 2018$ / sharesshares | May 31, 2018USD ($) | Dec. 31, 2017$ / sharesshares |
Common Stock, Shares Authorized | 200,000,000 | 200,000,000 | ||||||||||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.001 | $ 0.001 | ||||||||||
Preferred Stock, Shares Authorized | 5,000,000 | |||||||||||
Preferred Stock, Par or Stated Value Per Share | $ / shares | $ 0.001 | |||||||||||
Management Incentive Plan, Cash Bonuses, Potential Payout Amount | $ | $ 2,000,000 | $ 2,000,000 | ||||||||||
Melody Business Finance LLC [Member] | ||||||||||||
Number of Shares Held By Lender | 2,400 | |||||||||||
Reverse Stock Split [Member] | ||||||||||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 75 | 75 | 20 | |||||||||
Series G Convertible Preferred Stock [Member] | ||||||||||||
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 | ||||||||||
Preferred Stock, Par or Stated Value Per Share | $ / shares | $ 1,000 | $ 0.001 | $ 0.001 | |||||||||
Preferred Stock Conversion, Price Per Share | $ / shares | $ 7.50 | |||||||||||
Preferred Stock, Liquidation Preference Percentage, Per Share | 100.00% | |||||||||||
Convertible Preferred Stock, Maximum Beneficial Ownership Percentage of Common Stock Upon Conversion | 9.99% | |||||||||||
Convertible Preferred Stock, Beneficial Conversion Feature | $ | $ 1,905,570 | |||||||||||
Series H Convertible Preferred Stock [Member] | ||||||||||||
Preferred Stock, Par or Stated Value Per Share | $ / shares | $ 1,000 | |||||||||||
Convertible Preferred Stock, Conversion Price, Minimum Volume-weighted Average Price Used in Computation | $ / shares | $ 9.38 | |||||||||||
Preferred Stock, Liquidation Preference Percentage, Per Share | 100.00% | |||||||||||
Convertible Preferred Stock, Maximum Beneficial Ownership Percentage of Common Stock Upon Conversion | 9.99% | |||||||||||
Series I Preferred Stock [Member] | ||||||||||||
Stock Issued During Period, Shares, Warrants Exchanged | 100 | |||||||||||
Junior Stock Holder, Amount | $ | $ 1,025,437 | |||||||||||
Preferred Stock, Liquidation Value, Multiplier | 25.00% | |||||||||||
Preferred Stock, Voting Rights, Number of Votes Per Share for Certain Holders | 1 | |||||||||||
Conversion of Series E Convertible Preferred Stock into Shares of Common Stock [Member] | ||||||||||||
Conversion of Stock, Shares Converted | 500,000 | |||||||||||
Conversion of Stock, Shares Issued | 6,667 | |||||||||||
Conversion of Series F Convertible Preferred Stock into Common Stock [Member] | ||||||||||||
Conversion of Stock, Shares Converted | 590 | |||||||||||
Conversion of Stock, Shares Issued | 39,334 | |||||||||||
Conversion of Series D Convertible Preferred Stock into Shares of Series G Convertible Preferred Stock [Member] | ||||||||||||
Conversion of Stock, Shares Converted | 1,233 | |||||||||||
Conversion of Stock, Shares Issued | 938 | |||||||||||
Conversion of Series F Convertible Preferred Stock into Shares of Series H Convertible Preferred Stock [Member] | ||||||||||||
Conversion of Stock, Shares Converted | 643 | |||||||||||
Conversion of Stock, Shares Issued | 938 | |||||||||||
Series H Convertible Preferred Stock [Member] | ||||||||||||
Conversion of Stock, Shares Converted | 437 | |||||||||||
Conversion of Stock, Shares Issued | 46,614 | |||||||||||
Series G Convertible Preferred Stock [Member] | ||||||||||||
Conversion of Stock, Shares Converted | 400 | |||||||||||
Conversion of Stock, Shares Issued | 53,335 |
Note 10 - Capital Stock - Prefe
Note 10 - Capital Stock - Preferred Stock Designated, Issued and Outstanding (Details) - shares | Dec. 31, 2018 | Dec. 31, 2017 |
Series A Preferred Stock [Member] | ||
Preferred stock, shares designated (in shares) | 350,000 | |
Preferred stock, shares issued (in shares) | 0 | 0 |
Series B Convertible Preferred Stock [Member] | ||
Preferred stock, shares designated (in shares) | 892,857 | |
Preferred stock, shares issued (in shares) | 0 | 0 |
Series C Convertible Preferred Stock [Member] | ||
Preferred stock, shares designated (in shares) | 680,000 | |
Preferred stock, shares issued (in shares) | 0 | 0 |
Series D Convertible Preferred Stock [Member] | ||
Preferred stock, shares designated (in shares) | 4,421 | |
Preferred stock, shares issued (in shares) | 0 | 0 |
Series E Convertible Preferred Stock [Member] | ||
Preferred stock, shares designated (in shares) | 2,000,000 | |
Preferred stock, shares issued (in shares) | 0 | 0 |
Series F Convertible Preferred Stock [Member] | ||
Preferred stock, shares designated (in shares) | 1,233 | |
Preferred stock, shares issued (in shares) | 0 | 0 |
Series G Convertible Preferred Stock [Member] | ||
Preferred stock, shares designated (in shares) | 938 | |
Preferred stock, shares issued (in shares) | 538 | 538 |
Series H Convertible Preferred Stock [Member] | ||
Preferred stock, shares designated (in shares) | 938 | |
Preferred stock, shares issued (in shares) | 501 | 501 |
Series I Preferred Stock [Member] | ||
Preferred stock, shares designated (in shares) | 100 | |
Series I preferred stock, shares issued (in shares) | 100 | 0 |
Series A, B, C, D, E, F, G, H, And I Preferred Stock [Member] | ||
Preferred stock, shares designated (in shares) | 3,930,487 | |
Preferred stock, shares issued (in shares) | 1,139 | 1,039 |
Note 10 - Capital Stock - Pre_2
Note 10 - Capital Stock - Preferred Stock Designated, Issued and Outstanding (Details) (Parentheticals) - shares | Dec. 31, 2018 | Dec. 31, 2017 |
Series A Preferred Stock [Member] | ||
Preferred stock, shares outstanding (in shares) | ||
Series B Convertible Preferred Stock [Member] | ||
Preferred stock, shares outstanding (in shares) | ||
Series C Convertible Preferred Stock [Member] | ||
Preferred stock, shares outstanding (in shares) | ||
Series D Convertible Preferred Stock [Member] | ||
Preferred stock, shares outstanding (in shares) | ||
Series E Convertible Preferred Stock [Member] | ||
Preferred stock, shares outstanding (in shares) | ||
Series F Convertible Preferred Stock [Member] | ||
Preferred stock, shares outstanding (in shares) | ||
Series G Convertible Preferred Stock [Member] | ||
Preferred stock, shares outstanding (in shares) | 538 | 538 |
Series H Convertible Preferred Stock [Member] | ||
Preferred stock, shares outstanding (in shares) | 501 | 501 |
Series I Preferred Stock [Member] | ||
Series I preferred stock, shares outstanding (in shares) | 100 | 0 |
Series A, B, C, D, E, F, G, H, And I Preferred Stock [Member] | ||
Preferred stock, shares outstanding (in shares) | 1,139 | 1,039 |
Note 11 - Stock Option Plans _3
Note 11 - Stock Option Plans and Warrants (Details Textual) - USD ($) | May 24, 2018 | May 15, 2017 | Feb. 03, 2017 | Jan. 24, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Feb. 28, 2017 | Feb. 27, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Nov. 30, 2013 | Nov. 30, 2012 | Nov. 29, 2012 | Aug. 31, 2008 | May 31, 2007 |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 15,868 | 102 | 51,090 | ||||||||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 2.40 | $ 12.77 | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 0 | ||||||||||||||
Share Price | $ 13.50 | $ 2.10 | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 100.00% | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 1.76 | $ 9.65 | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance | 72,807 | 76,601 | 28,232 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Ending Balance | $ 116.53 | $ 117.42 | $ 404.82 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 7 years 328 days | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 51,952 | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ 156.83 | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 7 years 328 days | ||||||||||||||
Class of Warrant or Right, Outstanding | 2,400 | 2,400 | |||||||||||||
Series I Preferred Stock [Member] | |||||||||||||||
Stock Issued During Period, Shares, Warrants Exchanged | 100 | ||||||||||||||
Warrant [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Outstanding | $ 0 | ||||||||||||||
Non-employee [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 334 | ||||||||||||||
Director [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 102 | 170 | |||||||||||||
Executive Officer [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 50,586 | ||||||||||||||
Chief Executive Officer [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 6,676 | ||||||||||||||
Chief Operating Officer [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 5,854 | ||||||||||||||
Chief Financial Officer [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 3,338 | ||||||||||||||
Maximum [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Ending Balance | $ 7,845 | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | 7,845 | ||||||||||||||
Minimum [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Ending Balance | 2.40 | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ 2.40 | ||||||||||||||
The 2008 Directors Plan [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,334 | 667 | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 1,174 | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 160 | ||||||||||||||
The 2016 Equity Incentive Plan [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 33,618 | 19,134 | 19,134 | 9,094 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 69,184 | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 436 | ||||||||||||||
The 2016 Equity Incentive Plan [Member] | Non-employee [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 3,334 | ||||||||||||||
Employee Stock Option [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 1,487 | ||||||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total | $ 61,432 | ||||||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year | ||||||||||||||
Employee Stock Option [Member] | General and Administrative Expense [Member] | |||||||||||||||
Allocated Share-based Compensation Expense, Total | $ 161,394 | $ 931,382 | |||||||||||||
Employee Stock Option [Member] | Director [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | ||||||||||||||
Employee Stock Option [Member] | Maximum [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||||||||||||||
Employee Stock Option [Member] | Maximum [Member] | Non-employee [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | ||||||||||||||
Employee Stock Option [Member] | Maximum [Member] | Executive Officer [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 2 years | ||||||||||||||
Employee Stock Option [Member] | Maximum [Member] | Executive Officer [Member] | Vest Quarterly Over Next Three Years [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||||||||||||||
Employee Stock Option [Member] | Maximum [Member] | Employee [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||||||||||||||
Employee Stock Option [Member] | Minimum [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 5 years | ||||||||||||||
Employee Stock Option [Member] | Minimum [Member] | Non-employee [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 180 days | ||||||||||||||
Employee Stock Option [Member] | Minimum [Member] | Executive Officer [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | ||||||||||||||
Employee Stock Option [Member] | Minimum [Member] | Employee [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | ||||||||||||||
Employee Stock Option [Member] | The 2007 Plan [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,603 | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 887 | ||||||||||||||
Employee Stock Option [Member] | The 2007 Incentive Stock Plan [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 3,334 | 1,667 | 1,667 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 2,563 | ||||||||||||||
Stock Options [Member] | The 2016 Equity Incentive Plan and 2016 Non-employee Incentive Plan [Member] | Maximum [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||||||||||||||
Stock Options, Employment Agreement [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 7,556 | 27,162 | |||||||||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 12.75 | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross Percentage of Common Stock | 2.00% | ||||||||||||||
Stock Options, Employment Agreement [Member] | Vest on January 24, 2018 [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 4,178 | ||||||||||||||
Stock Options, Employment Agreement [Member] | Vest in Eight Quarterly Installments During the Twenty-four Months Ending January 24, 2020 [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 8,358 | ||||||||||||||
Stock Options, Employment Agreement [Member] | Vest Upon the Achievement of Three Consecutive Quarters of Positive Cash Flow [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 7,313 | ||||||||||||||
Stock Options, Employment Agreement [Member] | Vest Upon Sale of Earth Station Assets in Miami, Florida for Gross Proceeds Equal to or Greater than $15,000,000 [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 7,313 | ||||||||||||||
Stock Options, Employment Agreement [Member] | Share-based Compensation Award, Tranche One [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | ||||||||||||||
Stock Options, Employment Agreement [Member] | Share Based Compensation Award Tranches Two Three and Four [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||||||||||||||
Performance Shares [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Granted in Period, Fair Value | $ 140,708 |
Note 11 - Stock Option Plans _4
Note 11 - Stock Option Plans and Warrants - Black-Scholes Option Pricing Model Assumptions (Details) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Risk-free interest rate | 2.70% | |
Expected volatility | 105.00% | |
Expected life (in years) (Year) | 4 years 73 days | 4 years 73 days |
Estimated forfeiture rates | 20.00% | 20.00% |
Minimum [Member] | ||
Risk-free interest rate | 1.60% | |
Expected volatility | 110.00% | |
Maximum [Member] | ||
Risk-free interest rate | 1.70% | |
Expected volatility | 113.00% | |
Estimated forfeiture rates |
Note 11 - Stock Option Plans _5
Note 11 - Stock Option Plans and Warrants - Option Transactions Under the Stock Option Plans (Details) - $ / shares | Feb. 03, 2017 | Dec. 31, 2018 | Dec. 31, 2017 |
Outstanding (in shares) | 76,601 | 28,232 | |
Outstanding, weighted average exercise price (in dollars per share) | $ 117.42 | $ 404.82 | |
Granted (in shares) | 15,868 | 102 | 51,090 |
Granted, weighted average exercise price (in dollars per share) | $ 2.40 | $ 12.77 | |
Exercised (in shares) | |||
Exercised, weighted average exercise price (in dollars per share) | |||
Forfeited /expired (in shares) | (3,896) | (2,721) | |
Forfeited /expired, weighted average exercise price (in dollars per share) | $ 134.50 | $ 1,134.23 | |
Outstanding (in shares) | 72,807 | 76,601 | |
Outstanding, weighted average exercise price (in dollars per share) | $ 116.53 | $ 117.42 | |
Exercisable (in shares) | 51,952 | ||
Exercisable, weighted average exercise price (in dollars per share) | $ 156.83 |
Note 11 - Stock Option Plans _6
Note 11 - Stock Option Plans and Warrants - Grants Under Stock Option Plans (Details) - shares | Feb. 03, 2017 | Dec. 31, 2018 | Dec. 31, 2017 |
Granted (in shares) | 15,868 | 102 | 51,090 |
Director [Member] | |||
Granted (in shares) | 102 | 170 | |
Executive Officer [Member] | |||
Granted (in shares) | 50,586 | ||
Non-employee [Member] | |||
Granted (in shares) | 334 |
Note 11 - Stock Option Plans _7
Note 11 - Stock Option Plans and Warrants - Forfeited or Expired Options Under Stock Option Plans (Details) - shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Employee terminations (in shares) | 3,756 | 2,619 |
Expired (in shares) | 140 | 102 |
Total (in shares) | 3,896 | 2,721 |
Note 11 - Stock Option Plans _8
Note 11 - Stock Option Plans and Warrants - Summary of Warrant Activity (Details) | 24 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Outstanding, number (in shares) | shares | 2,400 |
Outstanding, weighted average exercise price (in dollars per share) | $ / shares | $ 1,265.25 |
Exchanged, number (in shares) | shares | (2,400) |
Exchanged, weighted average exercise price (in dollars per share) | $ / shares | $ 1,265.25 |
Outstanding, number (in shares) | shares | |
Outstanding, weighted average exercise price (in dollars per share) | $ / shares |
Note 12 - Employee Benefit Pr_2
Note 12 - Employee Benefit Programs (Details Textual) | 12 Months Ended | |
Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($)shares | |
Defined Contribution Plan, Eligibility Requirements, Minimum Age of Employees | 21 | |
Defined Contribution Plan, Eligibility Requirements, Minimum Length of Employment | 30 days | |
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 0 | $ 0 |
Stock Issued During Period, Value, Employee Stock Purchase Plan | $ 358 | |
2010 Employee Stock Purchase Plan [Member] | ||
Percentage Of Discount Allowed For Shares Issued Under Employee Stock Purchase Plan | 15.00% | 15.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | shares | 334 | |
Stock Issued During Period, Shares, Employee Stock Purchase Plans | shares | 0 | 30 |
Stock Issued During Period, Value, Employee Stock Purchase Plan | $ 0 | $ 358 |
Defined Contribution Plan, Cost | $ 0 | $ 52 |
Note 13 - Income Taxes (Details
Note 13 - Income Taxes (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 34.00% |
Revaluation of Deferred Tax Assets | $ (3,940,628) | |
Revaluation of Deferred Tax Liabilities | (203,738) | |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ 2,509,038 | 1,068,307 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense, Total | 0 | 0 |
Taxable Income (Loss) | (2,132,000) | (8,536,000) |
Operating Loss Carryforwards, Total | $ 18,227,000 | 16,095,000 |
Deferred Tax Assets Revaluated Under New Tax Rate [Member] | ||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ (3,791,030) | |
Earliest Tax Year [Member] | Domestic Tax Authority [Member] | ||
Open Tax Year | 2015 | |
Latest Tax Year [Member] | Domestic Tax Authority [Member] | ||
Open Tax Year | 2018 |
Note 13 - Income Taxes - Provis
Note 13 - Income Taxes - Provision for Income Taxes (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Federal | $ 0 | $ 0 |
State | 0 | 0 |
Total current | 0 | 0 |
Federal | (2,213,273) | (896,114) |
State | (632,364) | (256,033) |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 2,509,038 | 1,068,307 |
Total deferred | (336,598) | (83,840) |
Provision for income taxes | $ (336,598) | $ (83,840) |
Note 13 - Income Taxes - Effect
Note 13 - Income Taxes - Effective Tax Rate Reconciliation (Details) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
U.S. federal statutory rate | (21.00%) | (34.00%) |
State taxes | (6.00%) | (5.00%) |
Permanent differences | 0.10% | |
Change of federal deferred tax rate | 29.70% | |
Change in valuation allowance | 23.80% | 8.50% |
Effective tax rate | (3.20%) | (0.70%) |
Note 13 - Income Taxes - Deferr
Note 13 - Income Taxes - Deferred Tax Assets (Liabilities) (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets | ||
Net operating loss carryforwards | $ 4,921,264 | $ 4,345,624 |
Stock-based compensation | 2,324,392 | 2,280,815 |
Intangible assets | 1,280,812 | 1,094,799 |
Debt discount | 948,572 | 831,717 |
Allowance for doubtful accounts | 41,611 | 25,889 |
Interest expense limitation | 1,515,513 | |
Depreciation | 316,797 | |
Other | 286,800 | 287,571 |
Total deferred tax assets | 11,635,761 | 8,866,415 |
Valuation allowance | (11,253,638) | (8,744,600) |
Deferred tax assets, net of valuation allowance | 382,123 | 121,815 |
Deferred tax liabilities | ||
Depreciation | (121,815) | |
Intangible assets | (382,123) | (336,597) |
Total deferred tax liabilities | (382,123) | (458,412) |
Net deferred tax liabilities | $ (336,597) |
Note 14 - Fair Value Measurem_3
Note 14 - Fair Value Measurement - Fair Value of Assets and Liabilities (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Reported Value Measurement [Member] | ||
Cash and Cash Equivalents | $ 4,173,070 | $ 7,568,982 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Cash and Cash Equivalents | 4,173,070 | 7,568,982 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Cash and Cash Equivalents | ||
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Cash and Cash Equivalents |
Note 15 - Revenues (Details Tex
Note 15 - Revenues (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue from Contract with Customer, Including Assessed Tax | $ 24,604,310 | $ 26,212,550 |
Deferred Installation Fees | 131,877 | |
Deferred Commission Costs | 178,333 | |
Deferred Revenue [Member] | ||
Deferred Installation Fees | 93,406 | |
Other Noncurrent Liabilities [Member] | ||
Deferred Installation Fees | 38,471 | |
Other Current Assets [Member] | ||
Deferred Commission Costs | 136,410 | |
Other Assets [Member] | ||
Deferred Commission Costs | $ 41,923 | |
Minimum [Member] | ||
Wireless Internet Service, General Term of Contract | 1 year | |
Maximum [Member] | ||
Wireless Internet Service, General Term of Contract | 3 years | |
Accounting Standards Update 2014-09 [Member] | ||
Revenue from Contract with Customer, Including Assessed Tax | $ 131,877 |
Note 16 - Commitments (Details
Note 16 - Commitments (Details Textual) - USD ($) | Jun. 30, 2017 | Apr. 30, 2017 | Oct. 31, 2017 | Dec. 31, 2018 |
Virginia Sales Office [Member] | ||||
Operating Lease, Annual Rent | $ 32,021 | |||
Virginia Second Sales Office [Member] | ||||
Operating Lease, Annual Rent | $ 20,734 | |||
Corporate Offices [Member] | ||||
Lessee, Operating Lease, Renewal Term | 5 years | |||
Operating Lease, Annual Rent | $ 183,256 | |||
Annual Increase in Operating Lease Rent Expense | 2.50% | |||
Maximum [Member] | ||||
Lessee, Operating Lease, Renewal Term | 15 years | |||
Maximum [Member] | Corporate Offices [Member] | ||||
Operating Lease, Annual Rent | $ 213,422 |
Note 16 - Commitments - Total F
Note 16 - Commitments - Total Future Operating Lease Obligations (Details) | Dec. 31, 2018USD ($) |
2019 | $ 7,286,466 |
2020 | 5,231,865 |
2021 | 3,134,185 |
2022 | 1,918,867 |
2023 | 681,014 |
Thereafter | 311,412 |
Total | $ 18,563,809 |
Note 16 - Commitments - Rent Ex
Note 16 - Commitments - Rent Expenses (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Lease and Rental Expense | $ 10,286,434 | $ 9,849,494 |
Points of Presence [Member] | ||
Lease and Rental Expense | 9,071,856 | 8,693,892 |
Corporate Offices [Member] | ||
Lease and Rental Expense | 248,045 | 220,309 |
Other Leased Property [Member] | ||
Lease and Rental Expense | $ 966,533 | $ 935,293 |
Note 16 - Commitments - Total_2
Note 16 - Commitments - Total Future Capital Lease Obligations (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
2019 | $ 388,501 | |
2020 | 300,374 | |
2021 | 9,523 | |
Sub-Total | 698,398 | |
Less: Interest expense | 60,676 | |
Total capital lease obligations | 637,722 | |
Current | 341,975 | $ 382,918 |
Long-Term | $ 295,747 | $ 305,947 |
Note 17 - Subsequent Events (De
Note 17 - Subsequent Events (Details Textual) - Melody Business Finance LLC [Member] - Secured Debt [Member] - USD ($) | Jan. 31, 2019 | Apr. 15, 2018 | Jan. 26, 2018 |
Debt Covenant, Deposit and Securities Accounts, Minimum Balance, Waived | $ 6,500,000 | $ 6,500,000 | |
Debt Covenant, Deposit and Securities Accounts, Minimum Balance, Termination of Forbearance Period | $ 3,000,000 | $ 4,000,000 | |
Subsequent Event [Member] | |||
Debt Covenant, Deposit and Securities Accounts, Minimum Balance, Waived | $ 6,500,000 | ||
Debt Covenant, Deposit and Securities Accounts, Minimum Balance, Termination of Forbearance Period | $ 2,000,000 |