Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Nov. 14, 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 | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Assets | ||
Cash | $ 634,772 | $ 1,680,127 |
Restricted cash | 50,000 | 50,000 |
Accounts receivable, net of allowance for bad debt of $300,949 and $349,535, respectively | 2,474,511 | 2,229,610 |
Prepaid expenses and other assets | 527,264 | 398,187 |
Total current assets | 3,686,547 | 4,357,924 |
Property and equipment, net of accumulated depreciation and amortization of $3,201,153 and $2,585,072, respectively | 3,712,401 | 2,933,126 |
Other assets | 122,592 | 102,574 |
Total assets | 7,521,540 | 7,393,624 |
LIABILITIES AND STOCKHOLDERS' DEFICIT | ||
Accounts payable and accrued expenses | 2,344,121 | 2,639,008 |
Deferred revenues | 71,663 | 53,450 |
Credit facility, short term | 2,736,684 | 2,038,946 |
Other short-term loan, net of unamortized deferred financing cost of $9,791 and $43,133, respectively | 839,403 | 506,867 |
Total current liabilities | 5,991,871 | 5,238,271 |
Credit facility, net of unamortized deferred financing cost of $291,630 and $429,769, respectively | 4,498,346 | 4,588,227 |
Other long-term loan, net of unamortized deferred financing cost of $95,953 and $0, respectively | 379,853 | |
Other liabilities | 1,168,750 | 1,487,500 |
Total liabilities | 12,038,820 | 11,313,998 |
Stockholders' Deficit: | ||
Common stock; $0.001 par value; 100,000,000 shares authorized; 65,523,042 and 63,415,254 shares issued and outstanding, respectively | 65,522 | 63,414 |
Additional paid-in capital | 25,948,303 | 25,211,737 |
Accumulated deficit | (30,485,874) | (29,118,196) |
Accumulated other comprehensive loss | (45,231) | (77,329) |
Total stockholders’ deficit | (4,517,280) | (3,920,374) |
Total liabilities and stockholders’ deficit | 7,521,540 | 7,393,624 |
Series A Preferred Stock [Member] | ||
Stockholders' Deficit: | ||
Preferred stock | ||
Series B Preferred Stock [Member] | ||
Stockholders' Deficit: | ||
Preferred stock |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Accounts receivable, allowance for bad debt | $ 300,949 | $ 349,535 |
Property and equipment, accumulated depreciation | 3,201,153 | 2,585,072 |
Deferred financing cost, current | 9,791 | 43,133 |
Deferred financing cost, credit facility | 291,630 | 429,769 |
Deferred financing cost, noncurrent | $ 95,953 | $ 0 |
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) | 65,523,042 | 63,415,254 |
Common stock, shares outstanding (in shares) | 65,523,042 | 63,415,254 |
Series A Preferred Stock [Member] | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 54,000 | 54,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Series B Preferred Stock [Member] | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 1,946,000 | 1,946,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Statements of Operations - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Revenues: | $ 6,065,674 | $ 6,015,800 | $ 18,016,552 | $ 17,883,105 |
Cost of revenue | 2,749,975 | 2,073,018 | 6,660,684 | 6,035,828 |
Gross profit | 3,315,699 | 3,942,782 | 11,355,868 | 11,847,277 |
Operating expenses: | ||||
Research and development | 1,031,878 | 952,704 | 3,208,434 | 2,957,140 |
Sales and marketing | 1,119,302 | 924,415 | 3,419,095 | 2,791,715 |
General and administrative | 1,554,982 | 1,956,991 | 5,232,896 | 6,492,958 |
Total operating expenses | 3,706,162 | 3,834,110 | 11,860,425 | 12,241,813 |
Operating income (loss) | (390,463) | 108,672 | (504,557) | (394,536) |
Other income (expense): | ||||
Other income (loss) | 2 | (153) | 744 | 20,781 |
Other expense | (305,284) | (242,516) | (863,865) | (676,748) |
Total other (expense) | (305,282) | (242,669) | (863,121) | (655,967) |
Net loss | $ (695,745) | $ (133,997) | $ (1,367,678) | $ (1,050,503) |
Net loss per share: | ||||
Basic (in dollars per share) | $ (0.01) | $ 0 | $ (0.02) | $ (0.02) |
Diluted (in dollars per share) | $ (0.01) | $ 0 | $ (0.02) | $ (0.02) |
Basic weighted average common shares outstanding (in shares) | 65,520,434 | 65,121,621 | 65,356,201 | 65,086,886 |
Diluted weighted average common shares outstanding (in shares) | 65,520,434 | 65,121,621 | 65,356,201 | 65,086,886 |
Unaudited Condensed Consolidat5
Unaudited Condensed Consolidated Statements of Comprehensive Loss - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Net loss | $ (695,745) | $ (133,997) | $ (1,367,678) | $ (1,050,503) |
Foreign currency translation loss | 12,841 | (10,106) | 32,098 | (39,603) |
Total other comprehensive loss | 12,841 | (10,106) | 32,098 | (39,603) |
Comprehensive loss | $ (682,904) | $ (144,103) | $ (1,335,580) | $ (1,090,106) |
Unaudited Condensed Consolidat6
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash flows from operating activities: | ||
Net loss | $ (1,367,678) | $ (1,050,503) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 612,639 | 522,202 |
Impairment of fixed assets | 275,029 | |
Amortization of debt discount and deferred financing cost | 180,204 | 125,183 |
Provision for bad debt | (48,586) | (28,949) |
Fair value of options and warrants | 633,997 | 1,037,400 |
Non-cash expenses paid on company's behalf | 204,920 | |
Gain on sale of fixed assets | 902 | (245) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (196,315) | (411,782) |
Prepaid expenses and other assets | (129,077) | (267,823) |
Restricted cash | (200,000) | |
Accounts payable and accrued expenses | (641,049) | (449,131) |
Deferred revenues | 18,213 | 59,842 |
Other assets | (20,016) | 15,406 |
Net cash used in operating activities | (956,766) | (168,451) |
Cash flows from investing activities: | ||
Capitalized software for internal use | (1,347,075) | (1,606,887) |
Capital expenditures | (44,125) | (20,206) |
Proceeds from sale of assets | 795 | 6,267 |
Net cash used in investing activities | (1,390,405) | (1,620,826) |
Cash flows from financing activities: | ||
Principal repayments of line of credit | (1,653,282) | (137,777) |
Proceeds from line of credit | 1,923,000 | 1,803,105 |
Proceeds from promissory notes | 1,000,000 | |
Payment of financing costs | (129,678) | |
Net cash provided by financing activities | 1,269,718 | 1,535,650 |
Effect of exchange rate changes on cash | 32,098 | (39,603) |
Net decrease in cash | (1,045,355) | (293,230) |
Cash, beginning of period | 1,680,127 | 908,095 |
Cash, end of period | 634,772 | 614,865 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | 613,240 | 639,744 |
Cash paid for income taxes | 0 | 0 |
Non-cash investing and financing activities: | ||
Fair value of warrants issued in connection with line of credit and promissory notes | 104,676 | 391,618 |
Repayment of Agility Loan, included in accounts payable | 25,000 | 25,000 |
Repayment of Line of Credit | 4,572,223 | |
Shares issued for cashless exercise of options and warrants | $ 1,868 |
Note 1 - Organization and Descr
Note 1 - Organization and Description of Business | 9 Months Ended |
Sep. 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 nine September 30, 2017, The company is in discussions with various capital sources and expects to address any potential liquidity issues during the remainder of 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 nine September 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 | 9 Months Ended |
Sep. 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 ’s restricted cash amounted to $ 50,000 September 30, 2017 December 31, 2016. Accounts Receivable The Company ’s accounts receivable are due primarily from advertisers and marketers. Collateral is currently not may September 30, 201 7 December 31, 201 6 Allowance for doubtful accounts $ 300,949 $ 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. nine September 30, 2017, The Company's accounts receivable are due from customers, generally located in the United States, Europe, Asia, and Canada. None ’s customers accounted for more than 10% September 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 ’s own assumptions. Additional Disclosures Regarding Fair Value Measurements The carrying value of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses, and lines of credit approximate their fair value due to th e short-term maturity of these items. Advertising The Company expenses advertising costs as incurred. Three months ended Nine months ended September 30, September 30, 201 7 201 6 201 7 201 6 Advertising expense $ 84,302 $ 23,992 $ 254,446 $ 100,669 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 balance sheet accounts using exchange 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 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 unaudited condensed 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 $1, 347,075 nine September 30, 2017. $3,622,047 $2,784,011 September 30, 2017 December 31, 2016, $193,935 $509,039 three nine September 30, 2017, $195,387 $570,966 three nine September 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 nine September 30, 201 7 2016. Recent Accounting Pronouncements In January 2017, Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, 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; The Company is currently evaluating the impact of adopting ASU 2017 04 In May 2014, the FASB issued ASU 2014 09, 2014 09 2014 09 606 July 2015, one December 15, 2017 ( December 15, 2016 ( two one one 2014 09 606 The Company applied ASU 2015 03: – Imputation of Interest, which simplifies the presentation of debt issuance costs, and netted debt issue costs previously reported as assets with the related liability for presentation purposes. Other accounting pronouncements have been issued but deemed by management to be outside the scope of relevance to the Company. 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 September 30 Nine months ended September 30 201 7 201 6 201 7 201 6 Numerator: Net loss $ (695,745 ) $ (133,997 ) $ (1,367,678 ) $ (1,050,503 ) Denominator: Denominator for basic earnings per share--weighted average shares 65,520,434 65,121,621 65,356,201 65,086,886 Effect of dilutive securities- when applicable: Stock options - - - - Warrants - - - - Denominator for diluted earnings per share--adjusted weighted-average shares and assumed conversions 65,520,434 65,121,621 65,356,201 65,086,886 Loss per share: Basic $ (0.01 ) $ (0.00 ) $ (0.02 ) $ (0.02 ) Diluted $ (0.01 ) $ (0.00 ) $ (0.02 ) $ (0.02 ) Weighted-average anti-dilutive common share equivalents 17,091,949 18,087,545 16,579,396 18,501,508 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: September 30, 201 7 December 31, 201 6 Internal use software costs $ 6,071,042 $ 4,723,968 Computer equipment and software 430,225 387,472 Office furniture and equipment 120,131 119,768 Leasehold improvements 292,156 286,990 6,913,554 5,518,198 Accumulated depreciation (3,201,153 ) (2,585,072 ) $ 3,712,401 $ 2,933,126 Three months ended Nine months ended September 30, September 30, 201 7 201 6 201 7 201 6 Depreciation expense $ 34,071 $ 52,203 $ 103,601 $ 226,265 Amortization expense on internal software $ 193,935 $ 195,387 $ 509,039 $ 570,966 During the three nine September 30, 2017, $0 $7,500 $0 $1,700 $0 $800, During the three nine September 30, 2016, $3,000 $15,000 $1,000 $6,000 $1,000 $6,000, During the three nine September 30, 2016, $0 $280,000 $0 $31,000, |
Note 3 - Prepaid Expenses
Note 3 - Prepaid Expenses | 9 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
Other Assets Disclosure [Text Block] | NOTE 3: At September 30, 201 7 December 31, 2016, |
Note 4 - Deferred Revenues
Note 4 - Deferred Revenues | 9 Months Ended |
Sep. 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. September 30, 201 7 December 31, 201 6 Deferred revenues $ 71,663 $ 53,450 |
Note 5 - Line of Credit and Loa
Note 5 - Line of Credit and Loans | 9 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | NOTE 5: Line of Credit On September 30, 2014, 1 $6,000,000 ’s discretion, an increase from up to $3,000,000 March 17, 2014. As of September 30, 2017 December 31, 2016, no Agility Loan September 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 (400,000 ) (175,000 ) Agility Loan, Outstanding balance 325,000 550,000 Less: Deferred financing cost (9,791 ) (43,133 ) $ 315,209 $ 506,867 On March 11, 2016, which provides for total availability of $625,000 March 31, 2017. 12% $25,000 June 1, 2016. $130,000 $50,000 September 30, 2017, second In connection with the Agility Loan, on June 30, 2016, 69,444 ’s Common Stock at an exercise price of $0.45 March 11, 2021. $15,880 $0 $3,970, $3,947 $7,894, three nine September 30, 2017 2016, On November 29, 2016, November 2016, $100,000, December 31, 2017. November 29, 2016, 187,500 ’s Common Stock at an exercise price of $0.40 November 29, 2021. $42,427 $9,791 $29,372 three nine September 30, 2017, $ 0 three nine September 30, 2016. The Company owed $ 325,000 $550,000 September 30, 2017 December 31, 2016, Credit Facility - SaaS Capital Loan September 30, 2017 December 31, 2016 SaaS Capital Loan, Total advances $ 9,123,000 $ 7,200,000 Principal Payment of SaaS Capital Loan (1,596,340 ) (143,058 ) SaaS Capital Loan, Outstanding balance 7,526,660 7,056,942 Less: Deferred financing cost (291,630 ) (429,769 ) Less: SaaS Capital Loan, short term (1) (2,736,684 ) (2,038,946 ) $ 4,498,346 $ 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 ase and sell assets outside the ordinary course and incur additional indebtedness. As of September 30, 2017, September 2017 On May 5, 2016, 1,333,333 Common Stock at an exercise price of $0.45 May 5, 2026, 5 first $383,128 $31,927 $95,782, $31,319 $52,199, three nine September 30, 2017 2016, On November 29, 2016, $120,000, $10,000 one 200,000 $0.36 November 29, 2026. $60,185 fully expensed at December 31, 2016. On May 10, 2017, second 6.17 $0 $150,000 August 31, 2017 On June 16, 2017, third 6 36 On August 14, 2017, fourth During the three nine September 30, 2017, $773,000 $1,923,000 $547,445 $1,453,282, The Company owed $7, 526,660 $7,056,942 September 30, 2017 December 31, 2016, Promissory Notes September 30, 2017 December 31, 2016 Promissory Notes , Total $ 1,000,000 - Principal Payment of Promissory Notes - - Promissory Notes , Outstanding balance 1,000,000 - Less: Deferred financing cost (95,953 ) - Less: Promissory Notes, short term (524,194 ) - $ 379,853 $ - On August 14, 2017, $1,000,000 seven one ’s director, Greg Akselrud, and two August 14, 2019 12% three 1,000,000 $0.35 The fair value of the warrant amounted to $ 104,676 $ 8,723 $0 three nine September 30, 2017 2016, The Company owed $1,000,000 $0 September 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 Nine months ended September 30, September 30, 2017 2016 2017 2016 Amortization expense associated with line of credit and loan $ 64,560 $ 49,385 $ 180,204 $ 125,183 Interest expense associated with line of credit and loan $ 217,695 $ 153,750 $ 613,240 $ 324,842 Other finance fees associated with line of credit and loan $ 24,125 $ 39,057 $ 72,375 $ 226,294 |
Note 6 - Stockholders' Equity
Note 6 - Stockholders' Equity | 9 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE 6: ’ EQUITY Common Stock During the nine September 30, 2017, 1,707,692 2,400,000 During the nine September 30, 2016, 5,714 50,000 As of September 30, 2017, December 31, 2016, 65,523,042 63,415,254 Restricted Stock During the three September 30, 2016, 120,000 $0.50 4 July 1, 2016, June 30, 2017. During the three September 30, 2017, 120,000 4 July 1, 2017, The Company recorded expenses of $30,000 90,000 three nine September 30, 2017, $ 30,000 three nine September 30, 2016. Warrants During the nine September 30, 2017, 160,096 225,000 no three nine September 30, 2016. During the three nine September 30, 2017, 46,875 1,000,000 $0.35 August 14, 2020. $104,676, During the nine September 30, 2016, 69,444 1,333,333 $ 0.45 March 11, 2021 May 5, 2026 $15,880 $383,128, During the nine September 30, 2016, 2,466,760 1,650,000 2,000,000 650,000 December 2014. As of September 30, 2017, December 31, 2016, 8,719,341 7,991,216 $0.81 $0.64, During the three nine September 30, 2017, $125,867 $377,600, During the three nine September 30, 2016, $125,867 $680,467, During the three nine September 30, 2017, $ 8,723 the Promissory Notes Lenders. Options The Company generally recognizes its share-based payment over the vesting terms of the underlying options. Nine -month periods ended September 30, 2017 2016 Weighted-average grant date fair value $ - $ 0.50 Fair value of options, recognized as selling, general, and administrative expenses $ 166,397 $ 326,932 Number of options granted - 2,070,000 As of September 30, 2017 December 31, 2016, 10,380,000 13,125,000 $0.43 $0.38 The total compensation cost related to non-vested awards not 257,903 September 30, 2017 36 |
Note 7 - Comprehensive Loss
Note 7 - Comprehensive Loss | 9 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
Comprehensive Income (Loss) Note [Text Block] | NOTE 7: COMPREHENSIVE LOSS 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 nine September 30, 2017 2016: Three months ended Nine months ended September 30, September 30, 201 7 201 6 201 7 201 6 Net loss $ (695,745 ) $ (133,997 ) $ (1,367,678 ) $ (1,050,503 ) Other comprehensive loss: Foreign currency translation adjustment 12,841 (10,106 ) 32,098 (39,603 ) Comprehensive loss $ (682,904 ) $ (144,103 ) $ (1,335,580 ) $ (1,090,106 ) The following table sets forth the balance in accumulated other comprehensive loss as of September 30, 201 7 December 31, 2016, September 30, 201 7 December 31, 201 6 Accumulated other comprehensive loss $ (45,231 ) $ (77,329 ) |
Note 8 - Segments
Note 8 - Segments | 9 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | NOTE 8: The Company operates in one three nine September 30, 201 7 2016 Three months ended Nine months ended September 30, September 30, 201 7 201 6 201 7 201 6 United States 56 % 66 % 58 % 67 % Europe 18 % 20 % 20 % 19 % Other 26 % 14 % 22 % 14 % |
Note 9 - Commitments and Contin
Note 9 - Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 9: Effective August 25, 2017, January 2014 20411 treet, Newport Beach, California 92660, March 1, 2018, 1,332 11,728 June 30, 2023, March 1, 2018, $38,702 first $44,566 not first 4 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 ’s business, operating results, financial condition or cash flows. On November 29, 2016, ’s termination as an executive officer of the Company on 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. $1,593,750 September 30, 2017 $425,000 $1,168,750 |
Note 10 - Subsequent Events
Note 10 - Subsequent Events | 9 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | NOTE 10: On November 9, 2017, $240,000. Dumais was granted a five 750,000 $0.50 3 October 1, 2016, may On November 9, 2017, No. 1 ’s employment agreement with the Company from December 31, 2017 December 31, 2019. On November 9, 2017, five 2,000,000 ’s Common Stock at an exercise price of $0.50 3 January 1, 2016, may 2,000,000 On November 8, 2017, fifth Minimum Adjusted EBITDA covenant in Schedule 6.17 $0 $170,000 October 31, 2017, $150,000 November 1, 2017 December 31, 2017, $100,000 January 1, 2018 May 31, 2018, $50,000 June 1, 2018 August 31, 2018, $0 $600,000 January 31, 2018. September 2017. $375,000 On November 8, 2017, d into a third $300,000, November 9, 2017 $625,000. December 31, 2017 December 31, 2018. $125,000 not 180 November 8, 2017 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | 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 nine September 30, 2017, The company is in discussions with various capital sources and expects to address any potential liquidity issues during the remainder of 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 nine September 30, 2017 not December 31, 2017. |
Consolidation, Policy [Policy Text Block] | 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. |
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 ’s restricted cash amounted to $50,000 September 30, 2017 December 31, 2016. |
Receivables, Policy [Policy Text Block] | Accounts Receivable The Company ’s accounts receivable are due primarily from advertisers and marketers. Collateral is currently not may September 30, 201 7 December 31, 201 6 Allowance for doubtful accounts $ 300,949 $ 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. nine September 30, 2017, The Company's accounts receivable are due from customers, generally located in the United States, Europe, Asia, and Canada. None ’s customers accounted for more than 10% September 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 ’s own assumptions. Additional Disclosures Regarding Fair Value Measurements The carrying value of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses, and lines of credit approximate their fair value due to th e 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 Nine months ended September 30, September 30, 201 7 201 6 201 7 201 6 Advertising expense $ 84,302 $ 23,992 $ 254,446 $ 100,669 |
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 balance sheet accounts using exchange 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 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 unaudited condensed 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 $1, 347,075 nine September 30, 2017. $3,622,047 $2,784,011 September 30, 2017 December 31, 2016, $193,935 $509,039 three nine September 30, 2017, $195,387 $570,966 three nine September 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 nine September 30, 201 7 2016. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements In January 2017, Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, 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; The Company is currently evaluating the impact of adopting ASU 2017 04 In May 2014, the FASB issued ASU 2014 09, 2014 09 2014 09 606 July 2015, one December 15, 2017 ( December 15, 2016 ( two one one 2014 09 606 The Company applied ASU 2015 03: – Imputation of Interest, which simplifies the presentation of debt issuance costs, and netted debt issue costs previously reported as assets with the related liability for presentation purposes. Other accounting pronouncements have been issued but deemed by management to be outside the scope of relevance to the Company. |
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 September 30 Nine months ended September 30 201 7 201 6 201 7 201 6 Numerator: Net loss $ (695,745 ) $ (133,997 ) $ (1,367,678 ) $ (1,050,503 ) Denominator: Denominator for basic earnings per share--weighted average shares 65,520,434 65,121,621 65,356,201 65,086,886 Effect of dilutive securities- when applicable: Stock options - - - - Warrants - - - - Denominator for diluted earnings per share--adjusted weighted-average shares and assumed conversions 65,520,434 65,121,621 65,356,201 65,086,886 Loss per share: Basic $ (0.01 ) $ (0.00 ) $ (0.02 ) $ (0.02 ) Diluted $ (0.01 ) $ (0.00 ) $ (0.02 ) $ (0.02 ) Weighted-average anti-dilutive common share equivalents 17,091,949 18,087,545 16,579,396 18,501,508 |
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: September 30, 201 7 December 31, 201 6 Internal use software costs $ 6,071,042 $ 4,723,968 Computer equipment and software 430,225 387,472 Office furniture and equipment 120,131 119,768 Leasehold improvements 292,156 286,990 6,913,554 5,518,198 Accumulated depreciation (3,201,153 ) (2,585,072 ) $ 3,712,401 $ 2,933,126 Three months ended Nine months ended September 30, September 30, 201 7 201 6 201 7 201 6 Depreciation expense $ 34,071 $ 52,203 $ 103,601 $ 226,265 Amortization expense on internal software $ 193,935 $ 195,387 $ 509,039 $ 570,966 During the three nine September 30, 2017, $0 $7,500 $0 $1,700 $0 $800, During the three nine September 30, 2016, $3,000 $15,000 $1,000 $6,000 $1,000 $6,000, During the three nine September 30, 2016, $0 $280,000 $0 $31,000, |
Note 2 - Summary of Significa18
Note 2 - Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Notes Tables | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | September 30, 201 7 December 31, 201 6 Allowance for doubtful accounts $ 300,949 $ 349,535 |
Schedule of Advertising Expense [Table Text Block] | Three months ended Nine months ended September 30, September 30, 201 7 201 6 201 7 201 6 Advertising expense $ 84,302 $ 23,992 $ 254,446 $ 100,669 |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three months ended September 30 Nine months ended September 30 201 7 201 6 201 7 201 6 Numerator: Net loss $ (695,745 ) $ (133,997 ) $ (1,367,678 ) $ (1,050,503 ) Denominator: Denominator for basic earnings per share--weighted average shares 65,520,434 65,121,621 65,356,201 65,086,886 Effect of dilutive securities- when applicable: Stock options - - - - Warrants - - - - Denominator for diluted earnings per share--adjusted weighted-average shares and assumed conversions 65,520,434 65,121,621 65,356,201 65,086,886 Loss per share: Basic $ (0.01 ) $ (0.00 ) $ (0.02 ) $ (0.02 ) Diluted $ (0.01 ) $ (0.00 ) $ (0.02 ) $ (0.02 ) Weighted-average anti-dilutive common share equivalents 17,091,949 18,087,545 16,579,396 18,501,508 |
Property, Plant and Equipment [Table Text Block] | September 30, 201 7 December 31, 201 6 Internal use software costs $ 6,071,042 $ 4,723,968 Computer equipment and software 430,225 387,472 Office furniture and equipment 120,131 119,768 Leasehold improvements 292,156 286,990 6,913,554 5,518,198 Accumulated depreciation (3,201,153 ) (2,585,072 ) $ 3,712,401 $ 2,933,126 |
Depreciation Expense [Member] | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | Three months ended Nine months ended September 30, September 30, 201 7 201 6 201 7 201 6 Depreciation expense $ 34,071 $ 52,203 $ 103,601 $ 226,265 Amortization expense on internal software $ 193,935 $ 195,387 $ 509,039 $ 570,966 |
Note 4 - Deferred Revenues (Tab
Note 4 - Deferred Revenues (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Notes Tables | |
Deferred Revenue, by Arrangement, Disclosure [Table Text Block] | September 30, 201 7 December 31, 201 6 Deferred revenues $ 71,663 $ 53,450 |
Note 5 - Line of Credit and L20
Note 5 - Line of Credit and Loans (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | September 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 (400,000 ) (175,000 ) Agility Loan, Outstanding balance 325,000 550,000 Less: Deferred financing cost (9,791 ) (43,133 ) $ 315,209 $ 506,867 September 30, 2017 December 31, 2016 SaaS Capital Loan, Total advances $ 9,123,000 $ 7,200,000 Principal Payment of SaaS Capital Loan (1,596,340 ) (143,058 ) SaaS Capital Loan, Outstanding balance 7,526,660 7,056,942 Less: Deferred financing cost (291,630 ) (429,769 ) Less: SaaS Capital Loan, short term (1) (2,736,684 ) (2,038,946 ) $ 4,498,346 $ 4,588,227 September 30, 2017 December 31, 2016 Promissory Notes , Total $ 1,000,000 - Principal Payment of Promissory Notes - - Promissory Notes , Outstanding balance 1,000,000 - Less: Deferred financing cost (95,953 ) - Less: Promissory Notes, short term (524,194 ) - $ 379,853 $ - |
Schedule of Interest and Amortization Expense Line of Credit [Table Text Block] | Three months ended Nine months ended September 30, September 30, 2017 2016 2017 2016 Amortization expense associated with line of credit and loan $ 64,560 $ 49,385 $ 180,204 $ 125,183 Interest expense associated with line of credit and loan $ 217,695 $ 153,750 $ 613,240 $ 324,842 Other finance fees associated with line of credit and loan $ 24,125 $ 39,057 $ 72,375 $ 226,294 |
Note 6 - Stockholders' Equity (
Note 6 - Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Notes Tables | |
Share-based Compensation, Activity [Table Text Block] | Nine -month periods ended September 30, 2017 2016 Weighted-average grant date fair value $ - $ 0.50 Fair value of options, recognized as selling, general, and administrative expenses $ 166,397 $ 326,932 Number of options granted - 2,070,000 |
Note 7 - Comprehensive Loss (Ta
Note 7 - Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Notes Tables | |
Comprehensive Income (Loss) [Table Text Block] | Three months ended Nine months ended September 30, September 30, 201 7 201 6 201 7 201 6 Net loss $ (695,745 ) $ (133,997 ) $ (1,367,678 ) $ (1,050,503 ) Other comprehensive loss: Foreign currency translation adjustment 12,841 (10,106 ) 32,098 (39,603 ) Comprehensive loss $ (682,904 ) $ (144,103 ) $ (1,335,580 ) $ (1,090,106 ) |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | September 30, 201 7 December 31, 201 6 Accumulated other comprehensive loss $ (45,231 ) $ (77,329 ) |
Note 8 - Segments (Tables)
Note 8 - Segments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Notes Tables | |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | Three months ended Nine months ended September 30, September 30, 201 7 201 6 201 7 201 6 United States 56 % 66 % 58 % 67 % Europe 18 % 20 % 20 % 19 % Other 26 % 14 % 22 % 14 % |
Note 2 - Summary of Significa24
Note 2 - Summary of Significant Accounting Policies (Details Textual) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | 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 | 1,347,075 | $ 1,606,887 | |||
Capitalized Computer Software, Net | 3,622,047 | 3,622,047 | $ 2,784,011 | ||
Capitalized Computer Software, Amortization | 193,935 | $ 195,387 | $ 509,039 | $ 570,966 | |
Number of Reportable Segments | 1 | 1 | |||
Property, Plant and Equipment, Useful Life | 3 years | ||||
Proceeds from Sale of Productive Assets | $ 795 | $ 6,267 | |||
Customer Concentration Risk [Member] | Accounts Receivable [Member] | |||||
Concentration Risk, Percentage | 0.00% | 0.00% | |||
Fixed Assets [Member] | |||||
Property, Equipment and Equipment, Net, Disposals | 0 | 31,000 | |||
Impairment of Long-Lived Assets Held-for-use | 0 | 280,000 | |||
Computer Equipment [Member] | |||||
Property, Plant and Equipment, Disposals | 0 | 3,000 | $ 7,500 | 15,000 | |
Property, Equipment and Equipment, Net, Disposals | 0 | 1,000 | 1,700 | 6,000 | |
Proceeds from Sale of Productive Assets | $ 0 | $ 1,000 | $ 800 | $ 6,000 |
Note 2 - Summary of Significa25
Note 2 - Summary of Significant Accounting Policies - Accounts Receivable (Details) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Allowance for doubtful accounts | $ 300,949 | $ 349,535 |
Note 2 - Summary of Significa26
Note 2 - Summary of Significant Accounting Policies - Advertising Costs (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Advertising expense | $ 84,302 | $ 23,992 | $ 254,446 | $ 100,669 |
Note 2 - Summary of Significa27
Note 2 - Summary of Significant Accounting Policies - Basic and Diluted Earnings Per Share (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Numerator: | ||||
Net loss | $ (695,745) | $ (133,997) | $ (1,367,678) | $ (1,050,503) |
Denominator: | ||||
Denominator for basic earnings per share--weighted average shares (in shares) | 65,520,434 | 65,121,621 | 65,356,201 | 65,086,886 |
Effect of dilutive securities- when applicable: | ||||
Denominator for diluted earnings per share--adjusted weighted-average shares and assumed conversions (in shares) | 65,520,434 | 65,121,621 | 65,356,201 | 65,086,886 |
Basic (in dollars per share) | $ (0.01) | $ 0 | $ (0.02) | $ (0.02) |
Diluted (in dollars per share) | $ (0.01) | $ 0 | $ (0.02) | $ (0.02) |
Weighted-average anti-dilutive common share equivalents (in shares) | 17,091,949 | 18,087,545 | 16,579,396 | 18,501,508 |
Employee Stock Option [Member] | ||||
Effect of dilutive securities- when applicable: | ||||
Effect of dilutive securities (in shares) | ||||
Warrant [Member] | ||||
Effect of dilutive securities- when applicable: | ||||
Effect of dilutive securities (in shares) |
Note 2 - Summary of Significa28
Note 2 - Summary of Significant Accounting Policies - Property and Equipment (Details) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Property and equipment, gross | $ 6,913,554 | $ 5,518,198 |
Accumulated depreciation | (3,201,153) | (2,585,072) |
3,712,401 | 2,933,126 | |
Software Development [Member] | ||
Property and equipment, gross | 6,071,042 | 4,723,968 |
Computer Equipment [Member] | ||
Property and equipment, gross | 430,225 | 387,472 |
Furniture and Fixtures [Member] | ||
Property and equipment, gross | 120,131 | 119,768 |
Leasehold Improvements [Member] | ||
Property and equipment, gross | $ 292,156 | $ 286,990 |
Note 2 - Summary of Significa29
Note 2 - Summary of Significant Accounting Policies - Property and Equipment, Depreciation Expense (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Depreciation expense | $ 34,071 | $ 52,203 | $ 103,601 | $ 226,265 |
Amortization expense on internal software | $ 193,935 | $ 195,387 | $ 509,039 | $ 570,966 |
Note 4 - Deferred Revenues - De
Note 4 - Deferred Revenues - Deferred Revenues (Details) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Deferred revenues | $ 71,663 | $ 53,450 |
Note 5 - Line of Credit and L31
Note 5 - Line of Credit and Loans (Details Textual) - USD ($) | Aug. 14, 2017 | May 10, 2017 | May 09, 2017 | Nov. 29, 2016 | May 05, 2016 | Mar. 11, 2016 | May 31, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | Jun. 30, 2016 | Sep. 30, 2014 | Mar. 17, 2014 |
Line of Credit Facility, Maximum Borrowing Capacity | $ 6,000,000 | $ 3,000,000 | |||||||||||||
Amortization of Debt Discount (Premium) | $ 64,560 | $ 49,385 | $ 180,204 | $ 125,183 | |||||||||||
Proceeds from Lines of Credit | 1,923,000 | 1,803,105 | |||||||||||||
Repayments of Lines of Credit | 1,653,282 | 137,777 | |||||||||||||
Proceeds from Notes Payable | 1,000,000 | ||||||||||||||
Agility Loan Warrants [Member] | |||||||||||||||
Debt Instrument, Fee Amount | $ 100,000 | ||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 187,500 | 69,444 | |||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.40 | $ 0.45 | $ 0.45 | $ 0.45 | |||||||||||
Warrants and Rights Outstanding | $ 42,427 | $ 15,880 | $ 15,880 | $ 15,880 | |||||||||||
Amortization of Debt Discount (Premium) | 0 | 3,947 | 3,970 | 7,894 | |||||||||||
Agility Loan Warrants 2 [Member] | |||||||||||||||
Amortization of Debt Discount (Premium) | 9,791 | $ 0 | 29,372 | $ 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 | ||||||||||||
Warrants and Rights Outstanding | $ 383,128 | $ 383,128 | |||||||||||||
Subordinated Debt [Member] | |||||||||||||||
Debt Instrument, Face Amount | $ 625,000 | 625,000 | 625,000 | $ 625,000 | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 12.00% | ||||||||||||||
Debt Instrument, Periodic Payment | $ 25,000 | ||||||||||||||
Debt Instrument, Fee Amount | 130,000 | 100,000 | 100,000 | 100,000 | |||||||||||
Debt Instrument, Minimum Aggregate Interest in the Event of Prepayment | $ 50,000 | ||||||||||||||
Long-term Debt, Gross | 325,000 | 325,000 | 550,000 | ||||||||||||
Notes Payable, Other Payables [Member] | |||||||||||||||
Debt Instrument, Face Amount | $ 1,000,000 | $ 1,000,000 | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 12.00% | ||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 1,000,000 | ||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.35 | $ 0.35 | $ 0.35 | ||||||||||||
Warrants and Rights Outstanding | $ 104,676 | $ 104,676 | |||||||||||||
Amortization of Debt Discount (Premium) | 8,723 | 0 | 8,723 | 0 | |||||||||||
Long-term Debt, Gross | 1,000,000 | 1,000,000 | 0 | ||||||||||||
Proceeds from Notes Payable | $ 1,000,000 | ||||||||||||||
Derivative, Term of Contract | 3 years | ||||||||||||||
Line of Credit [Member] | |||||||||||||||
Long-term Line of Credit | 0 | 0 | 0 | ||||||||||||
SaaS Captial Loan [Member] | |||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 8,000,000 | ||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.25% | ||||||||||||||
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 | |||||||||||||
Amortization of Debt Discount (Premium) | 31,927 | $ 31,319 | 95,782 | $ 52,199 | |||||||||||
Long-term Debt, Gross | 7,526,660 | 7,526,660 | $ 7,056,942 | ||||||||||||
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 | $ 80,000 | |||||||||||||
Debt Instrument, Minimum Adjusted EBITDA | $ 150,000 | $ 0 | |||||||||||||
Proceeds from Lines of Credit | 773,000 | 1,923,000 | |||||||||||||
Repayments of Lines of Credit | $ 547,445 | $ 1,453,282 | |||||||||||||
SaaS Captial Loan [Member] | Loan Modification [Member] | |||||||||||||||
Debt Instrument, Periodic Payment | $ 10,000 | ||||||||||||||
Debt Instrument, Fee Amount | $ 120,000 |
Note 5 - Line of Credit and L32
Note 5 - Line of Credit and Loans - Line of Credit and Loans (Details) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Dec. 31, 2016 | Mar. 11, 2016 | ||
Subordinated Debt [Member] | ||||
Loans | $ 625,000 | $ 625,000 | $ 625,000 | |
Amendment, loan modification fee added to balance | 100,000 | 100,000 | $ 130,000 | |
Principal Payment | (400,000) | (175,000) | ||
Outstanding balance | 325,000 | 550,000 | ||
Less: Deferred financing cost | (9,791) | (43,133) | ||
315,209 | 506,867 | |||
SaaS Captial Loan [Member] | ||||
Loans | 9,123,000 | 7,200,000 | ||
Principal Payment | (1,596,340) | (143,058) | ||
Outstanding balance | 7,526,660 | 7,056,942 | ||
Less: Deferred financing cost | (291,630) | (429,769) | ||
4,498,346 | 4,588,227 | |||
Less: short term | [1] | (2,736,684) | (2,038,946) | |
Notes Payable, Other Payables [Member] | ||||
Loans | 1,000,000 | |||
Principal Payment | ||||
Outstanding balance | 1,000,000 | 0 | ||
Less: Deferred financing cost | (95,953) | |||
379,853 | ||||
Less: short term | $ (524,194) | |||
[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 | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Amortization expense associated with line of credit and loan | $ 64,560 | $ 49,385 | $ 180,204 | $ 125,183 |
Interest expense associated with line of credit and loan | 217,695 | 153,750 | 613,240 | 324,842 |
Other finance fees associated with line of credit and loan | $ 24,125 | $ 39,057 | $ 72,375 | $ 226,294 |
Note 6 - Stockholders' Equity34
Note 6 - Stockholders' Equity (Details Textual) | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2017USD ($)$ / sharesshares | Sep. 30, 2016USD ($)$ / sharesshares | Sep. 30, 2017USD ($)$ / sharesshares | Sep. 30, 2016USD ($)$ / sharesshares | Aug. 14, 2017$ / shares | Dec. 31, 2016$ / sharesshares | Nov. 29, 2016USD ($)$ / shares | Jun. 30, 2016USD ($)$ / shares | May 05, 2016$ / shares | |
Stock Issued During Period, Shares, New Issues | 1,707,692 | 5,714 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 2,400,000 | 50,000 | |||||||
Common Stock, Shares, Issued | 65,523,042 | 65,523,042 | 63,415,254 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 10,380,000 | 10,380,000 | 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 | $ | $ 257,903 | $ 257,903 | |||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 3 years | ||||||||
Common Stock, Shares, Outstanding | 65,523,042 | 65,523,042 | 63,415,254 | ||||||
December 2014 [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | 650,000 | ||||||||
Agility Loan Warrants [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 69,444 | ||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 0.45 | $ 0.45 | $ 0.40 | $ 0.45 | |||||
Warrants and Rights Outstanding | $ | $ 15,880 | $ 15,880 | $ 42,427 | $ 15,880 | |||||
SaaS Warrants [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 1,333,333 | ||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 0.45 | $ 0.45 | $ 0.45 | ||||||
Warrants and Rights Outstanding | $ | $ 383,128 | $ 383,128 | |||||||
Notes Payable, Other Payables [Member] | |||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 0.35 | $ 0.35 | $ 0.35 | ||||||
Warrants and Rights Outstanding | $ | $ 104,676 | $ 104,676 | |||||||
Warrant [Member] | |||||||||
Stock Issued During Period, Shares, New Issues | 160,096 | ||||||||
Allocated Share-based Compensation Expense | $ | $ 125,867 | $ 125,867 | $ 377,600 | $ 680,467 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Exercised | 0 | 225,000 | 0 | ||||||
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, Non-Option Equity Instruments, Outstanding, Number | 8,719,341 | 8,719,341 | 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 | $ 0.81 | $ 0.81 | $ 0.64 | ||||||
Warrant [Member] | Notes Payable, Other Payables [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 1,000,000 | 1,000,000 | |||||||
Allocated Share-based Compensation Expense | $ | $ 8,723 | $ 8,723 | |||||||
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 | 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 | 4 | |||||||
Allocated Share-based Compensation Expense | $ | $ 30,000 | $ 30,000 | $ 90,000 | $ 30,000 | |||||
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 - Stock Options (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Weighted-average grant date fair value (in dollars per share) | $ 0.50 | |
Number of options granted (in shares) | 2,070,000 | |
Selling, General and Administrative Expenses [Member] | ||
Fair value of options, recognized as selling, general, and administrative expenses | $ 166,397 | $ 326,932 |
Note 7 - Comprehensive Loss - R
Note 7 - Comprehensive Loss - Reconciliation From Net Loss to Comprehensive Loss (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Net loss | $ (695,745) | $ (133,997) | $ (1,367,678) | $ (1,050,503) |
Other comprehensive loss: | ||||
Foreign currency translation adjustment | 12,841 | (10,106) | 32,098 | (39,603) |
Comprehensive loss | $ (682,904) | $ (144,103) | $ (1,335,580) | $ (1,090,106) |
Note 7 - Comprehensive Loss - A
Note 7 - Comprehensive Loss - Accumulated Other Comprehensive Loss (Details) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Accumulated other comprehensive loss | $ (45,231) | $ (77,329) |
Note 8 - Segments (Details Text
Note 8 - Segments (Details Textual) | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Number of Reportable Segments | 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 | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
UNITED STATES | ||||
Percentage of sales | 56.00% | 66.00% | 58.00% | 67.00% |
Europe [Member] | ||||
Percentage of sales | 18.00% | 20.00% | 20.00% | 19.00% |
Other [Member] | ||||
Percentage of sales | 26.00% | 14.00% | 22.00% | 14.00% |
Note 9 - Commitments and Cont40
Note 9 - Commitments and Contingencies (Details Textual) | Aug. 25, 2017USD ($)ft² | Nov. 29, 2016USD ($)$ / sharesshares | Oct. 31, 2016USD ($) | Jul. 31, 2014USD ($) | Jul. 31, 2014GBP (£) | Jul. 30, 2014 | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($) |
Payments to Acquire Property, Plant, and Equipment | $ 44,125 | $ 20,206 | |||||||
Estimated Litigation Liability | 1,593,750 | ||||||||
Common Stock Issued and Outstanding Percentage Decrease | 3.00% | ||||||||
Gain (Loss) Related to Litigation Settlement | $ 2,200,000 | ||||||||
Accounts Payable and Accrued Liabilities [Member] | |||||||||
Estimated Litigation Liability | 425,000 | ||||||||
Other Noncurrent Liabilities [Member] | |||||||||
Estimated Litigation Liability | $ 1,168,750 | ||||||||
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] | |||||||||
Additional Area of Land | ft² | 1,332 | ||||||||
Area of Land | ft² | 11,728 | ||||||||
Office Space In Newport Beach California [Member] | Minimum [Member] | |||||||||
Operating Lease Monthly Rent | $ 38,702 | ||||||||
Office Space In Newport Beach California [Member] | Maximum [Member] | |||||||||
Operating Lease Monthly Rent | $ 44,566 | ||||||||
Sublease in Newport Beach [Member] | |||||||||
Operating Lease Monthly Rent | $ 4,100 | ||||||||
Lessor, Operating Lease, Term of Contract | 1 year 270 days | ||||||||
Lessee, Operating Lease, Term of Contract | 5 years | ||||||||
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 ($) | Sep. 01, 2018 | Nov. 09, 2017 | Nov. 08, 2017 | Oct. 31, 2017 | Oct. 30, 2017 | May 10, 2017 | May 09, 2017 | Dec. 31, 2017 | Aug. 31, 2018 | May 31, 2018 | Jan. 31, 2018 | Sep. 30, 2017 | Dec. 31, 2016 | Mar. 11, 2016 |
Subordinated Debt [Member] | ||||||||||||||
Debt Instrument, Fee Amount | $ 100,000 | $ 100,000 | $ 130,000 | |||||||||||
SaaS Captial Loan [Member] | ||||||||||||||
Debt Instrument, Minimum Adjusted EBITDA | $ 150,000 | $ 0 | ||||||||||||
SaaS Captial Loan [Member] | Scenario, Forecast [Member] | ||||||||||||||
Debt Instrument, Minimum Adjusted EBITDA | $ 0 | $ (150,000) | $ (50,000) | $ (100,000) | ||||||||||
Debt Instrument, Minimum Liquidity Covenant for Cash Balance | $ 600,000 | |||||||||||||
Subsequent Event [Member] | ||||||||||||||
Subordinated Debt | $ 625,000 | |||||||||||||
Subsequent Event [Member] | Subordinated Debt [Member] | ||||||||||||||
Debt Instrument, Fee Amount | $ 125,000 | |||||||||||||
Proceeds from Issuance of Long-term Debt | $ 300,000 | |||||||||||||
Debt Instrument, Restriction Period on Disposal of Equity | 180 days | |||||||||||||
Subsequent Event [Member] | SaaS Captial Loan [Member] | ||||||||||||||
Debt Instrument, Minimum Adjusted EBITDA | $ (170,000) | $ 0 | ||||||||||||
Debt Instrument, Fee Amount | $ 375,000 | |||||||||||||
Senior Vice President Product Development [Member] | Subsequent Event [Member] | ||||||||||||||
Annual Base Salary | $ 240,000 | |||||||||||||
Senior Vice President Product Development [Member] | Subsequent Event [Member] | Warrant [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 5 years | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 750,000 | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Exercise Price | $ 0.50 | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||||||||||||
Chief Financial Officer [Member] | Subsequent Event [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | 2,000,000 | |||||||||||||
Chief Financial Officer [Member] | Subsequent Event [Member] | Warrant [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 5 years | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 2,000,000 | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Exercise Price | $ 0.50 | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years |