Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Aug. 11, 2017 | |
Document Information [Line Items] | ||
Entity Registrant Name | ACCELERIZE INC. | |
Entity Central Index Key | 1,352,952 | |
Trading Symbol | aclz | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 65,523,042 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Current Assets: | ||
Cash | $ 120,422 | $ 1,680,127 |
Restricted cash | 50,000 | 50,000 |
Accounts receivable, net of allowance for bad debt of $366,746 and $349,535, respectively | 2,182,431 | 2,229,610 |
Prepaid expenses and other assets | 763,519 | 398,187 |
Total current assets | 3,116,372 | 4,357,924 |
Property and equipment, net of accumulated depreciation and amortization of $2,969,504 and $2,585,072, respectively | 3,472,794 | 2,933,126 |
Other assets | 106,157 | 102,574 |
Total assets | 6,695,323 | 7,393,624 |
Current Liabilities: | ||
Accounts payable and accrued expenses | 2,124,906 | 2,639,008 |
Deferred revenues | 91,217 | 53,450 |
Credit facility, short term | 2,477,995 | 2,038,946 |
Other short term loan, net of unamortized deferred financing cost of $19,582 and $43,133, respectively | 380,418 | 506,867 |
Total current liabilities | 5,074,536 | 5,238,271 |
Credit facility, net of unamortized deferred financing cost of $337,677 and $429,769, respectively | 4,485,433 | 4,588,227 |
Other Liabilities | 1,275,000 | 1,487,500 |
Total liabilities | 10,834,969 | 11,313,998 |
Stockholders' Deficit: | ||
Common stock; $0.001 par value; 100,000,000 shares authorized; 65,283,042 and 63,415,254 shares issued and outstanding, respectively | 65,282 | 63,414 |
Additional paid-in capital | 25,643,273 | 25,211,737 |
Accumulated deficit | (29,790,129) | (29,118,196) |
Accumulated other comprehensive loss | (58,072) | (77,329) |
Total stockholders’ deficit | (4,139,646) | (3,920,374) |
Total liabilities and stockholders’ deficit | 6,695,323 | 7,393,624 |
Series A Preferred Stock [Member] | ||
Stockholders' Deficit: | ||
Preferred stock | ||
Series B Preferred Stock [Member] | ||
Stockholders' Deficit: | ||
Preferred stock |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Accounts receivable, allowance for bad debt | $ 366,746 | $ 349,535 |
Property and equipment, accumulated depreciation | 2,969,504 | 2,585,072 |
Deferred financing cost, current | $ 19,582 | $ 43,133 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 65,283,042 | 63,415,254 |
Common stock, shares outstanding (in shares) | 65,283,042 | 63,415,254 |
Series A Preferred Stock [Member] | ||
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 54,000 | 54,000 |
Series B Preferred Stock [Member] | ||
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 1,946,000 | 1,946,000 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Statements of Operations - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Revenues: | $ 5,994,154 | $ 6,003,287 | $ 11,950,878 | $ 11,867,305 |
Cost of revenue | 2,365,364 | 2,030,687 | 3,910,709 | 3,962,810 |
Gross profit | 3,628,790 | 3,972,600 | 8,040,169 | 7,904,495 |
Operating expenses: | ||||
Research and development | 1,133,437 | 973,980 | 2,176,556 | 2,004,436 |
Sales and marketing | 1,083,303 | 874,422 | 2,299,793 | 1,867,300 |
General and administrative | 1,751,672 | 2,247,255 | 3,677,914 | 4,535,967 |
Total operating expenses | 3,968,412 | 4,095,657 | 8,154,263 | 8,407,703 |
Operating loss | (339,622) | (123,057) | (114,094) | (503,208) |
Other income (expense): | ||||
Interest income | 1,042 | 11,475 | 742 | 20,934 |
Interest expense | (278,129) | (221,683) | (558,581) | (434,232) |
Total other (expenses) | (277,087) | (210,208) | (557,839) | (413,298) |
Net loss | $ (616,709) | $ (333,265) | $ (671,933) | $ (916,506) |
Net loss per share: | ||||
Basic (in dollars per share) | $ (0.01) | $ (0.01) | $ (0.01) | $ (0.01) |
Diluted (in dollars per share) | $ (0.01) | $ (0.01) | $ (0.01) | $ (0.01) |
Basic weighted average common shares outstanding (in shares) | 65,283,042 | 65,069,327 | 65,272,723 | 65,069,327 |
Diluted weighted average common shares outstanding (in shares) | 65,283,042 | 65,069,327 | 65,272,723 | 65,069,327 |
Unaudited Condensed Consolidat5
Unaudited Condensed Consolidated Statements of Comprehensive Loss - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Net loss | $ (616,709) | $ (333,265) | $ (671,933) | $ (916,506) |
Foreign currency translation gain (loss) | 15,177 | (22,309) | 19,257 | (29,497) |
Total other comprehensive gain (loss) | 15,177 | (22,309) | 19,257 | (29,497) |
Comprehensive loss | $ (601,532) | $ (355,574) | $ (652,676) | $ (946,003) |
Unaudited Condensed Consolidat6
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash flows from operating activities: | ||
Net loss | $ (671,933) | $ (916,506) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 384,633 | 549,641 |
Amortization of deferred financing cost | 115,644 | 75,798 |
Provision for bad debt | 17,211 | (4,943) |
Fair value of options and warrants | 433,404 | 803,383 |
Non-cash expenses paid on company's behalf | 204,920 | |
Loss (gain) on sale of fixed assets | 902 | (448) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 29,968 | (153,622) |
Prepaid expenses and other assets | (365,332) | (245,521) |
Restricted cash | (500,000) | |
Accounts payable and accrued expenses | (753,229) | (365,461) |
Deferred revenues | 37,767 | (7,500) |
Other assets | (3,582) | 8,076 |
Net cash used in operating activities | (774,547) | (552,183) |
Cash flows from investing activities: | ||
Capitalized software for internal use | (891,393) | (1,030,456) |
Capital expenditures | (32,980) | (7,585) |
Proceeds from sale of assets | 795 | 5,642 |
Net cash used in investing activities | (923,578) | (1,032,399) |
Cash flows from financing activities: | ||
Principal repayments of credit facility and loan | (1,030,837) | (87,777) |
Proceeds from credit facility | 1,150,000 | 1,803,105 |
Payment of financing costs | (129,678) | |
Net cash provided by financing activities | 119,163 | 1,585,650 |
Effect of exchange rate changes on cash | 19,257 | (29,497) |
Net decrease in cash | (1,559,705) | (28,429) |
Cash, beginning of period | 1,680,127 | 908,095 |
Cash, end of period | 120,422 | 879,666 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | 395,545 | 419,802 |
Cash paid for income taxes | 0 | 0 |
Non-cash investing and financing activities: | ||
Fair value of warrants issued in connection with line of credit | 391,618 | |
Principal loan payments included in accounts payable | 25,000 | 25,000 |
Repayment of line of credit | 4,572,223 | |
Capital expenditure included in accounts payable | 7,282 | |
Shares issued for cashless exercise of options and warrants | $ 1,868 |
Note 1 - Organization and Descr
Note 1 - Organization and Description of Business | 6 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | NOTE 1: Accelerize Inc., a Delaware corporation, incorporated on November 22, 2005, The Company provides software solutions for businesses interested in expanding their online advertising spend. During the six June 30, 2017, second 2017. no These unaudited condensed consolidated financial statements reflect all adjustments including normal recurring adjustments, which, in the opinion of management, are necessary to present fairly the financial position, results of operations, and cash flows for the periods presented in accordance with accounting principles generally accepted in the United States of America, or GAAP. These unaudited condensed consolidated financial statements and notes included herein should be read in conjunction with the Company’s consolidated financial statements and notes thereto for the years ended December 31, 2016 2015, December 31, 2016 10 March 22, 2017. may three six June 30, 2017 not December 31, 2017. Principles of Consolidation The accompanying unaudited condensed consolidated financial statements include the results of operations of Cake Marketing UK Ltd., or the Subsidiary. All material intercompany accounts and transactions between the Company and the Subsidiary have been eliminated in consolidation. |
Note 2 - Summary Of Significant
Note 2 - Summary Of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | NOTE 2: Use of Estimates The preparation of unaudited condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reporting amounts of revenues and expenses during the reported period. Actual results will differ from those estimates. Included in these estimates are assumptions about collection of accounts receivable, useful life of fixed assets and intangible assets, and assumptions used in Black-Scholes-Merton, or BSM, valuation methods, such as expected volatility, risk-free interest rate, and expected dividend rate. Cash and Cash Equivalents The Company considers all highly liquid temporary cash investments with an original maturity of three $50,000 June 30, 2017. Accounts Receivable The Company’s accounts receivable are due primarily from advertisers and marketers. Collateral is currently not may June 30, 2017 December 31, 2016 Allowance for doubtful accounts $ 366,746 $ 349,535 Concentration of Credit Risks The Company is subject to concentrations of credit risk primarily from cash and cash equivalents and accounts receivable. The Company’s cash and cash equivalents accounts are held at a financial institution and are insured by the Federal Deposit Insurance Corporation, or the FDIC, up to $250,000. six June 30, 2017, The Company's accounts receivable are due from customers, generally located in the United States, Europe, Asia, and Canada. None 10% June 30, 2017 December 31, 2016. not Revenue Recognition The Company recognizes revenue on arrangements in accordance with ASC Topic 605, The Company’s SaaS revenues are generated from implementation and training fees and a monthly license fee, supplemented by per transaction fees paid by customers for monthly platform usage. The initial term of the customer contract is generally one one two may 30 not third third third not Product Concentration The Company generates its revenues from software licensing, usage, and related transaction fees. Fair Value of Financial Instruments The Company accounts for assets and liabilities measured at fair value on a recurring basis in accordance with ASC Topic 820, 820. 820 ASC 820 820 Level 1: Observable inputs such as quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs for which there is little or no Additional Disclosures Regarding Fair Value Measurements The carrying value of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses, lines of credit and loans, approximate their fair value due to the short-term maturity of these items. Advertising The Company expenses advertising costs as incurred. Three months ended Six months ended June 30, June 30, 2017 2016 2017 2016 Advertising expense $ 83,728 $ 39,351 $ 170,755 $ 76,677 Income Taxes Income taxes are accounted for in accordance with the provisions of ASC Topic 740, no Foreign Currency Translation The Company’s reporting currency is U.S. Dollars. The functional currency of the Company’s Subsidiary in the United Kingdom is British Pounds. The translation from British Pounds to U.S. dollars is performed for asset and liability accounts using exchange rates in effect at the balance sheet date, equity accounts using historical exchange rates or rates in effect at the balance sheet date, and for revenue and expense accounts using the average exchange rate in effect during the period. The resulting translation adjustments are recorded as a component of Accumulated Other Comprehensive Income (Loss). Foreign currency translation gains and losses arising from exchange rate fluctuation on transactions denominated in a currency other than the functional currency are included in the consolidated statements of operations. Software Development Costs Costs incurred in the research and development of software products and significant upgrades and enhancements thereto during the preliminary project stage and the post-implementation operation stage are expensed as incurred. Costs incurred for maintenance and relatively minor upgrades and enhancements are expensed as incurred. Costs associated with the application development stage of new software products and significant upgrades and enhancements thereto are capitalized when 1 2 $891,393 six June 30, 2017. $3,360,000 $2,784,000 June 30, 2017 December 31, 2016, $181,531 $315,103 three six June 30, 2017, $186,219 $375,579 three six June 30, 2016, Share-Based Payment The Company accounts for stock-based compensation in accordance with ASC Topic 718, 718. The Company has elected to use the BSM option-pricing model to estimate the fair value of its options, which incorporates various subjective assumptions including volatility, risk-free interest rate, expected life, and dividend yield to calculate the fair value of stock option awards. Compensation expense recognized in the statements of operations is based on awards ultimately expected to vest and reflects estimated forfeitures. ASC 718 Segment Reporting The Company generated revenues from one three six June 30, 2017 2016. Recent Accounting Pronouncements In January 2017, 2017 04, 350 2017 04 December 15, 2019. January 1, 2017. 2017 04 In January 2017, No. 2017 01, 805 not not January 1, 2018; 2017 01 The Company applied ASU 2015 03: Basic and Diluted Earnings Per Share Basic earnings per share are calculated by dividing income available to stockholders by the weighted-average number of common shares outstanding during each period. Diluted earnings per share are computed using the weighted average number of common and dilutive common share equivalents outstanding during the period. Dilutive common share equivalents consist of shares issuable upon the exercise of stock options and warrants (calculated using the modified-treasury stock method). Three months ended Six months ended June 30, June 30, 2017 2016 2017 2016 Numerator: Net loss $ (616,709 ) $ (333,265 ) $ (671,933 ) $ (916,506 ) Denominator: Denominator for basic earnings per share--weighted average shares 65,283,042 65,069,327 65,272,723 65,069,327 Effect of dilutive securities- when applicable: Stock options - - - - Warrants - - - - Denominator for diluted earnings per share--adjusted weighted-average shares and assumed conversions 65,283,042 65,069,327 65,272,723 65,069,327 Loss per share: Basic $ (0.01 ) $ (0.01 ) $ (0.01 ) $ (0.01 ) Diluted $ (0.01 ) $ (0.01 ) $ (0.01 ) $ (0.01 ) Weighted-average anti-dilutive common share equivalents 16,361,556 18,551,891 16,318,872 18,710,764 Property and Equipment Property and equipment are recorded at cost and are depreciated on a straight-line basis over their estimated useful lives of three Property and equipment consist of the following at: June 30, 2017 December 31, 2016 Internal use software costs $ 5,615,360 $ 4,723,968 Computer equipment and software 417,469 387,472 Office furniture and equipment 119,221 119,768 Leasehold improvements 290,248 286,990 6,442,298 5,518,198 Accumulated depreciation and amortization (2,969,504 ) (2,585,072 ) $ 3,472,794 $ 2,933,126 Three months ended Six months ended June 30, June 30, 2017 2016 2017 2016 Depreciation expense $ 34,075 $ 96,749 $ 69,530 $ 174,062 Amortization expense on internal software $ 181,530 $ 186,219 $ 315,103 $ 375,579 During the three six June 30, 2017, $0 $7,500 $0 $1,700 $0 $800, During the three six June 30, 2016, $2,000 $12,000 $0 $5,000 $1,000 $6,000, During the three six June 30, 2016, $280,000 $280,000, $31,000 $31,000, |
Note 3 - Prepaid Expenses
Note 3 - Prepaid Expenses | 6 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
Other Assets Disclosure [Text Block] | NOTE 3: At June 30, 2017 December 31, 2016, |
Note 4 - Deferred Revenues
Note 4 - Deferred Revenues | 6 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
Deferred Revenue Disclosure [Text Block] | NOTE 4: The Company’s deferred revenues consist of prepayments made by certain of the Company’s customers and undelivered implementation and training fees. The Company decreases the deferred revenues by the amount of the services it renders to such clients when provided. June 30, 2017 December 31, 2016 Deferred revenues $ 91,217 $ 53,450 |
Note 5 - Line of Credit and Loa
Note 5 - Line of Credit and Loans | 6 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | NOTE 5: Line of Credit On September 30, 2014, 1 $6,000,000 $3,000,000 March 17, 2014. As of June 30, 2017 December 31, 2016, no Agility Loan June 30, 2017 December 31, 2016 Agility Loan $ 625,000 $ 625,000 Amendment, loan modification fee added to balance 100,000 100,000 Principal Payment of Agility Loan (325,000 ) (175,000 ) Agility Loan, Outstanding balance 400,000 550,000 Less: Deferred financing cost (19,582 ) (43,133 ) $ 380,418 $ 506,867 On March 11, 2016, $625,000 March 31, 2017. 12% $25,000 June 1, 2016. $130,000 $50,000 June 30, 2017, second In connection with the Agility Loan, on June 30, 2016, 69,444 $0.45 March 11, 2021. $15,880 $0 $3,970, $3,947 $3,947, three six June 30, 2017 2016, On November 29, 2016, November 2016, $100,000, December 31, 2017. November 29, 2016, 187,500 $0.40 November 29, 2021. $42,427 $9,791 $19,582 three six June 30, 2017, $0 three six June 30, 2016. The Company owed $400,000 $550,000 June 30, 2017 December 31, 2016, Credit Facility - SaaS Capital Loan June 30, 2017 December 31, 2016 SaaS Capital Loan, Total advances 8,350,000 7,200,000 Principal Payment of SaaS Capital Loan (1,048,895 ) (143,058 ) SaaS Capital Loan, Outstanding balance 7,301,105 7,056,942 Less: Deferred financing cost (337,677 ) (429,769 ) Less: SaaS Capital Loan, short term (1) (2,477,995 ) (2,038,946 ) $ 4,485,433 $ 4,588,227 ( 1 Short-term portion constitutes scheduled amortization payments for the next 12 On May 5, 2016, $8,000,000. 10.25% 10.25% 9.21% three first six 36 10%, 6% 3% 12 12 24 24 may May 5, 2018. $5,000,000, May 5, 2016, $4,572,223. $80,000 $80,000 May 2017. The SaaS Capital Loan contains customary covenants including, but not June 30, 2017, On May 5, 2016, 1,333,333 $0.45 May 5, 2026, 5 first $383,128 $31,927 $63,854, $20,880 $20,880, three six June 30, 2017 2016, On November 29, 2016, $120,000, $10,000 one 200,000 $0.36 November 29, 2026. $60,185 December 31, 2016. On May 10, 2017, second 6.17 $0 $150,000 August 31, 2017 On June 16, 2017, third 6 36 During the three six June 30, 2017, $650,000 $1,150,000 $469,289 $905,837, The Company owed $7,301,105 $7,056,942 June 30, 2017 December 31, 2016, The Company recognized amortization and interest expenses in connection with the line of credit and loans as follows. Three months ended Six months ended June 30, June 30, 2017 2016 2017 2016 Amortization expense associated with line of credit and loan $ 55,837 $ 62,432 $ 115,644 $ 75,798 Interest expense associated with line of credit and loan $ 198,955 $ 126,623 $ 395,545 $ 194,026 Other finance fees associated with line of credit and loan $ 24,125 $ 22,200 $ 48,250 $ 158,355 |
Note 6 - Stockholders' Deficit
Note 6 - Stockholders' Deficit | 6 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE 6: Common Stock During the six June 30, 2017, 1,707,692 2,400,000 no six June 30, 2016. As of June 30, 2017, December 31, 2016, 65,283,042 63,415,254 Restricted Stock During 2016, 120,000 $0.50 4 July 1, 2016, December 31, 2016, $30,000 $60,000 three six June 30, 2017, $0 three six June 30, 2016. June 30, 2017. Warrants During the six June 30, 2017, 160,096 225,000 no three six June 30, 2016. During the three six June 30, 2017, no 46,875 During the six June 30, 2016, 69,444 1,333,333 $0.45 March 11, 2021 May 5, 2026 $15,880 $383,128, During the six June 30, 2016, 2,466,760 1,650,000 2,000,000 650,000 December 2014. As of June 30, 2017, December 31, 2016, 7,719,341 7,991,216 $0.87 $0.64, During the three six June 30, 2017, $125,867 $251,734, During the three six June 30, 2016, $270,508 $554,601, Options The Company generally recognizes its share-based payment over the vesting terms of the underlying options. Six-month periods ended June 30, 2017 2016 Weighted-average grant date fair value $ - $ 0.50 Fair value of options, recognized as selling, general, and administrative expenses $ 118,823 $ 248,783 Number of options granted - 2,020,000 As of June 30, 2017 December 31, 2016, 10,450,000 13,125,000 $0.43 $0.38 The total compensation cost related to non-vested awards not $323,867 June 30, 2017 39 |
Note 7 - Comprehensive Loss
Note 7 - Comprehensive Loss | 6 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
Comprehensive Income (Loss) Note [Text Block] | NOTE 7: Comprehensive loss includes changes in equity related to foreign currency translation adjustments. The following table sets forth the reconciliation from net loss to comprehensive loss for the three six June 30, 2017 2016: Three months ended Six months ended June 30, June 30, 2017 2016 2017 2016 Net loss $ (616,709 ) $ (333,265 ) $ (671,933 ) $ (916,506 ) Other comprehensive income (loss): Foreign currency translation adjustment 15,177 (22,309 ) 19,257 (29,497 ) Comprehensive loss $ (601,532 ) $ (355,574 ) $ (652,676 ) $ (946,003 ) The following table sets forth the balance in accumulated other comprehensive loss as of June 30, 2017 December 31, 2016, June 30, December 31, 2017 2016 Accumulated other comprehensive income $ (58,072 ) $ (77,329 ) |
Note 8 - Segments
Note 8 - Segments | 6 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | NOTE 8: The Company operates in one three six June 30, 2016 2015 Three months ended Six months ended June 30, June 30, 2017 2016 2017 2016 United States 58% 67% 59% 68% Europe 21% 19% 21% 19% Other 21% 14% 20% 13% |
Note 9 - Commitments and Contin
Note 9 - Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 9: During January 2014, 4 February 1, 2014. $22,000 $25,000. During October 2016, May 2014 21 June 1, 2016. $4,100 During July 2014, five July 30, 2014. 89,667 $129,000 45,658 $66,000 60,000 $86,000 Legal Proceedings From time to time, the Company may not On November 29, 2016, September 8, 2014. 1,890,000 $2,700,000. $1,000,000 January 18, 2017, $500,000. $1,700,000 48 July 1, 2017. 6,600,000 $0.15 $0.31 1,890,000 3%. 2016, $2,200,000, $500,000, December 2016. $1,700,000 June 30, 2017 $425,000 $1,275,000 |
Note 10 - Subsequent Events
Note 10 - Subsequent Events | 6 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | NOTE 10: On July 1, 2017, 120,000 four July 1, 2017. Effective August 1, 2017, three $5,000,000. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of unaudited condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reporting amounts of revenues and expenses during the reported period. Actual results will differ from those estimates. Included in these estimates are assumptions about collection of accounts receivable, useful life of fixed assets and intangible assets, and assumptions used in Black-Scholes-Merton, or BSM, valuation methods, such as expected volatility, risk-free interest rate, and expected dividend rate. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents The Company considers all highly liquid temporary cash investments with an original maturity of three $50,000 June 30, 2017. |
Receivables, Policy [Policy Text Block] | Accounts Receivable The Company’s accounts receivable are due primarily from advertisers and marketers. Collateral is currently not may June 30, 2017 December 31, 2016 Allowance for doubtful accounts $ 366,746 $ 349,535 |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentration of Credit Risks The Company is subject to concentrations of credit risk primarily from cash and cash equivalents and accounts receivable. The Company’s cash and cash equivalents accounts are held at a financial institution and are insured by the Federal Deposit Insurance Corporation, or the FDIC, up to $250,000. six June 30, 2017, The Company's accounts receivable are due from customers, generally located in the United States, Europe, Asia, and Canada. None 10% June 30, 2017 December 31, 2016. not |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition The Company recognizes revenue on arrangements in accordance with ASC Topic 605, The Company’s SaaS revenues are generated from implementation and training fees and a monthly license fee, supplemented by per transaction fees paid by customers for monthly platform usage. The initial term of the customer contract is generally one one two may 30 not third third third not |
Product Concentration Policy [Policy Text Block] | Product Concentration The Company generates its revenues from software licensing, usage, and related transaction fees. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value of Financial Instruments The Company accounts for assets and liabilities measured at fair value on a recurring basis in accordance with ASC Topic 820, 820. 820 ASC 820 820 Level 1: Observable inputs such as quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs for which there is little or no Additional Disclosures Regarding Fair Value Measurements The carrying value of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses, lines of credit and loans, approximate their fair value due to the short-term maturity of these items. |
Advertising Cost, Policy, Expensed Advertising Cost [Policy Text Block] | Advertising The Company expenses advertising costs as incurred. Three months ended Six months ended June 30, June 30, 2017 2016 2017 2016 Advertising expense $ 83,728 $ 39,351 $ 170,755 $ 76,677 |
Income Tax, Policy [Policy Text Block] | Income Taxes Income taxes are accounted for in accordance with the provisions of ASC Topic 740, no |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency Translation The Company’s reporting currency is U.S. Dollars. The functional currency of the Company’s Subsidiary in the United Kingdom is British Pounds. The translation from British Pounds to U.S. dollars is performed for asset and liability accounts using exchange rates in effect at the balance sheet date, equity accounts using historical exchange rates or rates in effect at the balance sheet date, and for revenue and expense accounts using the average exchange rate in effect during the period. The resulting translation adjustments are recorded as a component of Accumulated Other Comprehensive Income (Loss). Foreign currency translation gains and losses arising from exchange rate fluctuation on transactions denominated in a currency other than the functional currency are included in the consolidated statements of operations. |
Research, Development, and Computer Software, Policy [Policy Text Block] | Software Development Costs Costs incurred in the research and development of software products and significant upgrades and enhancements thereto during the preliminary project stage and the post-implementation operation stage are expensed as incurred. Costs incurred for maintenance and relatively minor upgrades and enhancements are expensed as incurred. Costs associated with the application development stage of new software products and significant upgrades and enhancements thereto are capitalized when 1 2 $891,393 six June 30, 2017. $3,360,000 $2,784,000 June 30, 2017 December 31, 2016, $181,531 $315,103 three six June 30, 2017, $186,219 $375,579 three six June 30, 2016, |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Share-Based Payment The Company accounts for stock-based compensation in accordance with ASC Topic 718, 718. The Company has elected to use the BSM option-pricing model to estimate the fair value of its options, which incorporates various subjective assumptions including volatility, risk-free interest rate, expected life, and dividend yield to calculate the fair value of stock option awards. Compensation expense recognized in the statements of operations is based on awards ultimately expected to vest and reflects estimated forfeitures. ASC 718 |
Segment Reporting, Policy [Policy Text Block] | Segment Reporting The Company generated revenues from one three six June 30, 2017 2016. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements In January 2017, 2017 04, 350 2017 04 December 15, 2019. January 1, 2017. 2017 04 In January 2017, No. 2017 01, 805 not not January 1, 2018; 2017 01 The Company applied ASU 2015 03: |
Earnings Per Share, Policy [Policy Text Block] | Basic and Diluted Earnings Per Share Basic earnings per share are calculated by dividing income available to stockholders by the weighted-average number of common shares outstanding during each period. Diluted earnings per share are computed using the weighted average number of common and dilutive common share equivalents outstanding during the period. Dilutive common share equivalents consist of shares issuable upon the exercise of stock options and warrants (calculated using the modified-treasury stock method). Three months ended Six months ended June 30, June 30, 2017 2016 2017 2016 Numerator: Net loss $ (616,709 ) $ (333,265 ) $ (671,933 ) $ (916,506 ) Denominator: Denominator for basic earnings per share--weighted average shares 65,283,042 65,069,327 65,272,723 65,069,327 Effect of dilutive securities- when applicable: Stock options - - - - Warrants - - - - Denominator for diluted earnings per share--adjusted weighted-average shares and assumed conversions 65,283,042 65,069,327 65,272,723 65,069,327 Loss per share: Basic $ (0.01 ) $ (0.01 ) $ (0.01 ) $ (0.01 ) Diluted $ (0.01 ) $ (0.01 ) $ (0.01 ) $ (0.01 ) Weighted-average anti-dilutive common share equivalents 16,361,556 18,551,891 16,318,872 18,710,764 |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment Property and equipment are recorded at cost and are depreciated on a straight-line basis over their estimated useful lives of three Property and equipment consist of the following at: June 30, 2017 December 31, 2016 Internal use software costs $ 5,615,360 $ 4,723,968 Computer equipment and software 417,469 387,472 Office furniture and equipment 119,221 119,768 Leasehold improvements 290,248 286,990 6,442,298 5,518,198 Accumulated depreciation and amortization (2,969,504 ) (2,585,072 ) $ 3,472,794 $ 2,933,126 Three months ended Six months ended June 30, June 30, 2017 2016 2017 2016 Depreciation expense $ 34,075 $ 96,749 $ 69,530 $ 174,062 Amortization expense on internal software $ 181,530 $ 186,219 $ 315,103 $ 375,579 During the three six June 30, 2017, $0 $7,500 $0 $1,700 $0 $800, During the three six June 30, 2016, $2,000 $12,000 $0 $5,000 $1,000 $6,000, During the three six June 30, 2016, $280,000 $280,000, $31,000 $31,000, |
Note 2 - Summary Of Significa18
Note 2 - Summary Of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Notes Tables | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | June 30, 2017 December 31, 2016 Allowance for doubtful accounts $ 366,746 $ 349,535 |
Schedule of Advertising Expense [Table Text Block] | Three months ended Six months ended June 30, June 30, 2017 2016 2017 2016 Advertising expense $ 83,728 $ 39,351 $ 170,755 $ 76,677 |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three months ended Six months ended June 30, June 30, 2017 2016 2017 2016 Numerator: Net loss $ (616,709 ) $ (333,265 ) $ (671,933 ) $ (916,506 ) Denominator: Denominator for basic earnings per share--weighted average shares 65,283,042 65,069,327 65,272,723 65,069,327 Effect of dilutive securities- when applicable: Stock options - - - - Warrants - - - - Denominator for diluted earnings per share--adjusted weighted-average shares and assumed conversions 65,283,042 65,069,327 65,272,723 65,069,327 Loss per share: Basic $ (0.01 ) $ (0.01 ) $ (0.01 ) $ (0.01 ) Diluted $ (0.01 ) $ (0.01 ) $ (0.01 ) $ (0.01 ) Weighted-average anti-dilutive common share equivalents 16,361,556 18,551,891 16,318,872 18,710,764 |
Property, Plant and Equipment [Table Text Block] | June 30, 2017 December 31, 2016 Internal use software costs $ 5,615,360 $ 4,723,968 Computer equipment and software 417,469 387,472 Office furniture and equipment 119,221 119,768 Leasehold improvements 290,248 286,990 6,442,298 5,518,198 Accumulated depreciation and amortization (2,969,504 ) (2,585,072 ) $ 3,472,794 $ 2,933,126 |
Depreciation Expense [Member] | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | Three months ended Six months ended June 30, June 30, 2017 2016 2017 2016 Depreciation expense $ 34,075 $ 96,749 $ 69,530 $ 174,062 Amortization expense on internal software $ 181,530 $ 186,219 $ 315,103 $ 375,579 |
Note 4 - Deferred Revenues (Tab
Note 4 - Deferred Revenues (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Notes Tables | |
Deferred Revenue, by Arrangement, Disclosure [Table Text Block] | June 30, 2017 December 31, 2016 Deferred revenues $ 91,217 $ 53,450 |
Note 5 - Line of Credit and L20
Note 5 - Line of Credit and Loans (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | June 30, 2017 December 31, 2016 Agility Loan $ 625,000 $ 625,000 Amendment, loan modification fee added to balance 100,000 100,000 Principal Payment of Agility Loan (325,000 ) (175,000 ) Agility Loan, Outstanding balance 400,000 550,000 Less: Deferred financing cost (19,582 ) (43,133 ) $ 380,418 $ 506,867 June 30, 2017 December 31, 2016 SaaS Capital Loan, Total advances 8,350,000 7,200,000 Principal Payment of SaaS Capital Loan (1,048,895 ) (143,058 ) SaaS Capital Loan, Outstanding balance 7,301,105 7,056,942 Less: Deferred financing cost (337,677 ) (429,769 ) Less: SaaS Capital Loan, short term (1) (2,477,995 ) (2,038,946 ) $ 4,485,433 $ 4,588,227 |
Schedule of Interest and Amortization Expense Line of Credit [Table Text Block] | Three months ended Six months ended June 30, June 30, 2017 2016 2017 2016 Amortization expense associated with line of credit and loan $ 55,837 $ 62,432 $ 115,644 $ 75,798 Interest expense associated with line of credit and loan $ 198,955 $ 126,623 $ 395,545 $ 194,026 Other finance fees associated with line of credit and loan $ 24,125 $ 22,200 $ 48,250 $ 158,355 |
Note 6 - Stockholders' Deficit
Note 6 - Stockholders' Deficit (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Notes Tables | |
Share-based Compensation, Activity [Table Text Block] | Six-month periods ended June 30, 2017 2016 Weighted-average grant date fair value $ - $ 0.50 Fair value of options, recognized as selling, general, and administrative expenses $ 118,823 $ 248,783 Number of options granted - 2,020,000 |
Note 7 - Comprehensive Loss (Ta
Note 7 - Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Notes Tables | |
Comprehensive Income (Loss) [Table Text Block] | Three months ended Six months ended June 30, June 30, 2017 2016 2017 2016 Net loss $ (616,709 ) $ (333,265 ) $ (671,933 ) $ (916,506 ) Other comprehensive income (loss): Foreign currency translation adjustment 15,177 (22,309 ) 19,257 (29,497 ) Comprehensive loss $ (601,532 ) $ (355,574 ) $ (652,676 ) $ (946,003 ) |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | June 30, December 31, 2017 2016 Accumulated other comprehensive income $ (58,072 ) $ (77,329 ) |
Note 8 - Segments (Tables)
Note 8 - Segments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Notes Tables | |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | Three months ended Six months ended June 30, June 30, 2017 2016 2017 2016 United States 58% 67% 59% 68% Europe 21% 19% 21% 19% Other 21% 14% 20% 13% |
Note 2 - Summary Of Significa24
Note 2 - Summary Of Significant Accounting Policies (Details Textual) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($) | |
Restricted Cash and Cash Equivalents, Current | $ 50,000 | $ 50,000 | $ 50,000 | ||
Cash, FDIC Insured Amount | 250,000 | 250,000 | |||
Payments to Develop Software | 891,393 | $ 1,030,456 | |||
Capitalized Computer Software, Net | 3,360,000 | 3,360,000 | $ 2,784,000 | ||
Amortization of Intangible Assets | $ 181,531 | $ 186,219 | 315,103 | 375,579 | |
Proceeds from Sale of Productive Assets | $ 795 | $ 5,642 | |||
Number of Reportable Segments | 1 | 1 | 1 | 1 | |
Fixed Assets [Member] | |||||
Impairment of Long-Lived Assets Held-for-use | $ 280,000 | $ 280,000 | |||
Property, Equipment and Equipment, Net, Disposals | 31,000 | 31,000 | |||
Computer Equipment [Member] | |||||
Proceeds from Sale of Productive Assets | $ 0 | 1,000 | $ 800 | 6,000 | |
Property, Equipment and Equipment, Net, Disposals | 0 | 0 | 1,700 | 5,000 | |
Property, Plant and Equipment, Disposals | $ 0 | $ 2,000 | $ 7,500 | $ 12,000 | |
Estimated [Member] | |||||
Property, Plant and Equipment, Useful Life | 3 years |
Note 2 - Summary of Significa25
Note 2 - Summary of Significant Accounting Policies - Accounts Receivable (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Allowance for doubtful accounts | $ 366,746 | $ 349,535 |
Note 2 - Summary of Significa26
Note 2 - Summary of Significant Accounting Policies - Advertising Costs (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Advertising expense | $ 83,728 | $ 39,351 | $ 170,755 | $ 76,677 |
Note 2 - Summary of Significa27
Note 2 - Summary of Significant Accounting Policies - Basic and Diluted Earnings Per Share (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Numerator: | ||||
Net loss | $ (616,709) | $ (333,265) | $ (671,933) | $ (916,506) |
Denominator: | ||||
Denominator for basic earnings per share--weighted average shares (in shares) | 65,283,042 | 65,069,327 | 65,272,723 | 65,069,327 |
Effect of dilutive securities- when applicable: | ||||
Denominator for diluted earnings per share--adjusted weighted-average shares and assumed conversions (in shares) | 65,283,042 | 65,069,327 | 65,272,723 | 65,069,327 |
Basic (in dollars per share) | $ (0.01) | $ (0.01) | $ (0.01) | $ (0.01) |
Diluted (in dollars per share) | $ (0.01) | $ (0.01) | $ (0.01) | $ (0.01) |
Weighted-average anti-dilutive common share equivalents (in shares) | 16,361,556 | 18,551,891 | 16,318,872 | 18,710,764 |
Employee Stock Option [Member] | ||||
Effect of dilutive securities- when applicable: | ||||
Effect of dilutive securities | ||||
Warrant [Member] | ||||
Effect of dilutive securities- when applicable: | ||||
Effect of dilutive securities |
Note 2 - Summary of Significa28
Note 2 - Summary of Significant Accounting Policies - Property and Equipment (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Property, plant, and equipment, gross | $ 6,442,298 | $ 5,518,198 |
Accumulated depreciation and amortization | (2,969,504) | (2,585,072) |
3,472,794 | 2,933,126 | |
Software Development [Member] | ||
Property, plant, and equipment, gross | 5,615,360 | 4,723,968 |
Computer Equipment [Member] | ||
Property, plant, and equipment, gross | 417,469 | 387,472 |
Furniture and Fixtures [Member] | ||
Property, plant, and equipment, gross | 119,221 | 119,768 |
Leasehold Improvements [Member] | ||
Property, plant, and equipment, gross | $ 290,248 | $ 286,990 |
Note 2 - Summary of Significa29
Note 2 - Summary of Significant Accounting Policies - Property and Equipment, Depreciation Expense (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Depreciation expense | $ 34,075 | $ 96,749 | $ 69,530 | $ 174,062 |
Amortization expense on internal software | $ 181,531 | $ 186,219 | $ 315,103 | $ 375,579 |
Note 4 - Deferred Revenues - De
Note 4 - Deferred Revenues - Deferred Revenues (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Deferred revenues | $ 91,217 | $ 53,450 |
Note 5 - Line of Credit and L31
Note 5 - Line of Credit and Loans (Details Textual) - USD ($) | May 10, 2017 | Nov. 29, 2016 | May 05, 2016 | Mar. 11, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | May 05, 2017 | Dec. 31, 2016 | Sep. 30, 2014 | Mar. 17, 2014 |
Proceeds from Lines of Credit | $ 1,150,000 | $ 1,803,105 | ||||||||||
Repayments of Lines of Credit | 1,030,837 | 87,777 | ||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 6,000,000 | $ 3,000,000 | ||||||||||
Amortization of Debt Discount (Premium) | $ 55,837 | $ 62,432 | 115,644 | 75,798 | ||||||||
Agility Loan Warrants [Member] | ||||||||||||
Long-term Debt | 400,000 | 400,000 | $ 550,000 | |||||||||
Amortization of Debt Discount (Premium) | 0 | $ 3,947 | 3,970 | $ 3,947 | ||||||||
Debt Instrument, Fee Amount Included in Principal Balance | $ 100,000 | |||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 187,500 | 69,444 | 69,444 | |||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.40 | $ 0.45 | $ 0.45 | |||||||||
Warrants and Rights Outstanding | $ 42,427 | $ 15,880 | $ 15,880 | |||||||||
Agility Loan Warrants 2 [Member] | ||||||||||||
Amortization of Debt Discount (Premium) | 9,791 | $ 0 | 19,582 | $ 0 | ||||||||
SaaS Warrants [Member] | ||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 1,333,333 | |||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.45 | $ 0.45 | $ 0.45 | |||||||||
Subordinated Debt [Member] | ||||||||||||
Long-term Debt | 380,418 | 380,418 | 506,867 | |||||||||
Debt Instrument, Fee Amount Included in Principal Balance | 100,000 | 100,000 | 100,000 | |||||||||
Debt Instrument, Face Amount | $ 625,000 | 625,000 | 625,000 | 625,000 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 12.00% | |||||||||||
Debt Instrument, Periodic Payment, Monthly Amortization | $ 25,000 | |||||||||||
Debt Instrument, Aggregate Fees to Be Paid | 130,000 | |||||||||||
Debt Instrument, Minimum Aggregate Interest in the Event of Prepayment | $ 50,000 | |||||||||||
Line of Credit [Member] | ||||||||||||
Long-term Line of Credit | 0 | 0 | 0 | |||||||||
SaaS Captial Loan [Member] | ||||||||||||
Proceeds from Lines of Credit | 650,000 | 1,150,000 | ||||||||||
Repayments of Lines of Credit | 469,289 | 905,837 | ||||||||||
Long-term Debt | 7,301,105 | 7,301,105 | 7,056,942 | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 8,000,000 | |||||||||||
Amortization of Debt Discount (Premium) | $ 31,927 | $ 20,880 | 63,854 | $ 20,880 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.25% | |||||||||||
Debt Instrument, Reference Rate | 9.21% | |||||||||||
Prepayment Fee, Percentage Period One | 10.00% | |||||||||||
Prepayment Fee, Percentage, Period Two | 6.00% | |||||||||||
Prepayment Fee, Percentage, Period Three | 3.00% | |||||||||||
Proceeds from Long-term Lines of Credit | $ 5,000,000 | |||||||||||
Repayments of Long-term Lines of Credit | 4,572,223 | |||||||||||
Line of Credit Facility, Commitment Fee Amount | 80,000 | |||||||||||
Line of Credit Facility, Additional Commitment Fee Amount | $ 80,000 | |||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 200,000 | |||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.36 | |||||||||||
Warrants and Rights Outstanding | $ 383,128 | $ 60,185 | ||||||||||
Debt Instrument, Minimum Adjusted EBITDA | $ 150,000 | $ 0 | ||||||||||
SaaS Captial Loan [Member] | Loan Modification [Member] | ||||||||||||
Debt Instrument, Fee Amount | $ 120,000 | |||||||||||
Debt Instrument, Periodic Payment | $ 10,000 |
Note 5 - Line of Credit and L32
Note 5 - Line of Credit and Loans - Line of Credit and Loans (Details) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Dec. 31, 2016 | Mar. 11, 2016 | ||
Subordinated Debt [Member] | ||||
Amendment, loan modification fee added to balance | $ 100,000 | $ 100,000 | ||
Principal Payment | (325,000) | (175,000) | ||
Debt Instrument, Carrying Amount | 400,000 | 550,000 | ||
Less: Deferred financing cost | (19,582) | (43,133) | ||
Long-term Debt | 380,418 | 506,867 | ||
Debt Instrument, Face Amount | 625,000 | 625,000 | $ 625,000 | |
SaaS Captial Loan [Member] | ||||
Principal Payment | (1,048,895) | (143,058) | ||
Debt Instrument, Carrying Amount | 7,301,105 | 7,056,942 | ||
Less: Deferred financing cost | (337,677) | (429,769) | ||
Less: SaaS Capital Loan, short term (1) | [1] | (2,477,995) | (2,038,946) | |
Long-term Debt | 4,485,433 | 4,588,227 | ||
Debt Instrument, Face Amount | $ 8,350,000 | $ 7,200,000 | ||
[1] | Short-term portion constitutes scheduled amortization payments for the next 12 months which create immediate access to additional borrowing availability equal to the amount of amortization payments |
Note 5 - Line of Credit and L33
Note 5 - Line of Credit and Loan - Estimated Future Amortization Expense (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Amortization expense associated with line of credit and loan | $ 55,837 | $ 62,432 | $ 115,644 | $ 75,798 |
Interest expense associated with line of credit and loan | 198,955 | 126,623 | 395,545 | 194,026 |
Other finance fees associated with line of credit and loan | $ 24,125 | $ 22,200 | $ 48,250 | $ 158,355 |
Note 6 - Stockholders' Defici34
Note 6 - Stockholders' Deficit (Details Textual) | Jul. 01, 2017shares | Jun. 30, 2017USD ($)$ / sharesshares | Jun. 30, 2016USD ($)$ / sharesshares | Jun. 30, 2017USD ($)$ / sharesshares | Jun. 30, 2016USD ($)$ / sharesshares | Dec. 31, 2016$ / sharesshares | Nov. 29, 2016$ / shares | May 05, 2016$ / shares | Mar. 31, 2016shares |
Stock Issued During Period Shares Stock Options Exercised Noncash | 1,707,692 | ||||||||
Cashless Exercise Of Options | 2,400,000 | ||||||||
Fair Value of Warrants Issued in Connection with Line of Credit | $ | $ 391,618 | ||||||||
Common Stock, Shares, Issued | 65,283,042 | 65,283,042 | 63,415,254 | 63,415,254 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 120,000 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 10,450,000 | 10,450,000 | 13,125,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ / shares | $ 0.43 | $ 0.43 | $ 0.38 | ||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ | $ 323,867 | $ 323,867 | |||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 3 years 90 days | ||||||||
Allocated Share-based Compensation Expense | $ | $ 125,867 | $ 270,508 | $ 251,734 | $ 554,601 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Exercised | 0 | ||||||||
December 2014 [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | 650,000 | ||||||||
Agility Loan Warrants [Member] | |||||||||
Class of Warrant or Right, Issued During Period | 69,444 | ||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 0.45 | $ 0.45 | $ 0.40 | ||||||
Fair Value of Warrants Issued in Connection with Line of Credit | $ | $ 15,880 | ||||||||
SaaS Warrants [Member] | |||||||||
Class of Warrant or Right, Issued During Period | 1,333,333 | ||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 0.45 | $ 0.45 | $ 0.45 | ||||||
Fair Value of Warrants Issued in Connection with Line of Credit | $ | $ 383,128 | ||||||||
Warrant [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Expirations | 46,875 | 46,875 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 2,466,760 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 0 | 0 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 7,719,341 | 7,719,341 | 7,991,216 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ / shares | $ 0.87 | $ 0.87 | $ 0.64 | ||||||
Stock Issued During Period Shares Warrants Exercised Noncash | 160,096 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Exercised | 0 | 225,000 | 0 | ||||||
Restricted Stock [Member] | Non-employee Directors [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 120,000 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 0.50 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Vesting, Number of Equal Quarterly Increments | 4 | ||||||||
Allocated Share-based Compensation Expense | $ | $ 30,000 | $ 0 | $ 60,000 | $ 0 | |||||
Warrants Forfeited and Replaced with New Warrants in Conjunction with Forfeiture of Options [Member] | Warrant [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 1,650,000 | ||||||||
Warrants Issued to Replace Forfeited Warrants and Options [Member] | Warrant [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 2,000,000 |
Note 6 - Stockholders' Equity -
Note 6 - Stockholders' Equity - Additional Stock Option Information (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Weighted-average grant date fair value (in dollars per share) | $ 0.50 | |
Number of options granted (in shares) | 2,020,000 | |
Selling, General and Administrative Expenses [Member] | ||
Fair value of options, recognized as selling, general, and administrative expenses | $ 118,823 | $ 248,783 |
Note 7 - Comprehensive Loss - R
Note 7 - Comprehensive Loss - Reconciliation From Net Loss to Comprehensive Income (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Net loss | $ (616,709) | $ (333,265) | $ (671,933) | $ (916,506) |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment | 15,177 | (22,309) | 19,257 | (29,497) |
Comprehensive loss | $ (601,532) | $ (355,574) | $ (652,676) | $ (946,003) |
Note 7 - Comprehensive Loss - A
Note 7 - Comprehensive Loss - Accumulated Other Comprehensive Loss (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Accumulated other comprehensive income | $ (58,072) | $ (77,329) |
Note 8 - Segments (Details Text
Note 8 - Segments (Details Textual) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Number of Reportable Segments | 1 | 1 | 1 | 1 |
Note 8 - Segments - Sales by Ge
Note 8 - Segments - Sales by Geographic Region (Details) - Sales Revenue, Segment [Member] - Geographic Concentration Risk [Member] | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
UNITED STATES | ||||
Percentage of sales | 58.00% | 67.00% | 59.00% | 68.00% |
Europe [Member] | ||||
Percentage of sales | 21.00% | 19.00% | 21.00% | 19.00% |
Other [Member] | ||||
Percentage of sales | 21.00% | 14.00% | 20.00% | 13.00% |
Note 9 - Commitments and Cont40
Note 9 - Commitments and Contingencies (Details Textual) | Nov. 29, 2016USD ($)$ / sharesshares | Oct. 31, 2016USD ($) | Jul. 31, 2014USD ($) | Jul. 31, 2014GBP (£) | Jul. 30, 2014 | Jan. 31, 2014USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($) |
Common Stock Issued and Outstanding Percentage Decrease | 3.00% | ||||||||
Gain (Loss) Related to Litigation Settlement | $ 2,200,000 | ||||||||
Payments to Acquire Property, Plant, and Equipment | $ 32,980 | $ 7,585 | |||||||
Estimated Litigation Liability | 1,700,000 | ||||||||
Accounts Payable and Accrued Liabilities [Member] | |||||||||
Estimated Litigation Liability | 425,000 | ||||||||
Other Noncurrent Liabilities [Member] | |||||||||
Estimated Litigation Liability | $ 1,275,000 | ||||||||
Executive Officer [Member] | |||||||||
Stock Cancelled During Period, Shares | shares | 1,890,000 | ||||||||
Litigation Settlement, Amount Awarded to Other Party | $ 2,700,000 | ||||||||
Payments for Legal Settlements | 1,000,000 | ||||||||
Payments for Legal Settlements by Insurance Carrier | 500,000 | ||||||||
Estimated Litigation Liability | $ 1,700,000 | ||||||||
Payments For Legal Settlements, Installment Terms | 48 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | shares | 6,600,000 | ||||||||
Minimum [Member] | Executive Officer [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price | $ / shares | $ 0.15 | ||||||||
Maximum [Member] | Executive Officer [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price | $ / shares | $ 0.31 | ||||||||
Office Space In Newport Beach California [Member] | |||||||||
Lessee, Operating Lease, Term of Contract | 4 years | ||||||||
Office Space In Newport Beach California [Member] | Minimum [Member] | |||||||||
Operating Lease Monthly Rent | $ 22,000 | ||||||||
Office Space In Newport Beach California [Member] | Maximum [Member] | |||||||||
Operating Lease Monthly Rent | $ 25,000 | ||||||||
Sublease in Newport Beach [Member] | |||||||||
Lessor, Operating Lease, Term of Contract | 1 year 270 days | ||||||||
Lessee, Operating Lease, Term of Contract | 5 years | ||||||||
Operating Lease Monthly Rent | $ 4,100 | ||||||||
Office Space in London England [Member] | |||||||||
Operating Lease Monthly Rent | $ 129,000 | £ 89,667 | |||||||
Operating Lease Service Charges | 66,000 | 45,658 | |||||||
Office Space in London England [Member] | Leasehold Improvements [Member] | |||||||||
Payments to Acquire Property, Plant, and Equipment | $ 86,000 | £ 60,000 |
Note 10 - Subsequent Events (De
Note 10 - Subsequent Events (Details Textual) - USD ($) | Aug. 01, 2017 | Jul. 01, 2017 | Dec. 31, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 120,000 | ||
Restricted Stock [Member] | Non-employee Directors [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 120,000 | ||
Subsequent Event [Member] | Restricted Stock [Member] | Non-employee Directors [Member] | Share-based Compensation Award, Tranche One [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 90 days | ||
Subsequent Event [Member] | Restricted Stock [Member] | Non-employee Directors [Member] | Share-based Compensation Award, Tranche Two [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 90 days | ||
Subsequent Event [Member] | Restricted Stock [Member] | Non-employee Directors [Member] | Share-based Compensation Award, Tranche Three [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 90 days | ||
Subsequent Event [Member] | Restricted Stock [Member] | Non-employee Directors [Member] | Share-based Compensation Award, Tranche Four [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 90 days | ||
Subsequent Event [Member] | Agreement with Web Hosting Provider [Member] | |||
Long-term Purchase Commitment, Period | 3 years | ||
Long-term Purchase Commitment, Annual Payment | $ 5,000,000 |