Where Food Comes From (WFCF) 10-K 16 Feb 16 2015 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2015	Feb. 08, 2016	Jun. 30, 2015
Document And Entity Information
Entity Registrant Name	Where Food Comes From, Inc.
Entity Central Index Key	1,360,565
Document Type	10-K
Document Period End Date	Dec. 31, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer	No
Is Entity a Voluntary Filer	No
Is Entity's Reporting Status Current	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$ 40,338,664
Entity Common Stock, Shares Outstanding		23,736,487
Closing Stock Price			$ 2.63
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,015

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 3,781,397	$ 2,583,058
Restricted cash		250,000
Accounts receivable, net	$ 1,110,052	979,532
Prepaid expenses and other current assets	154,912	126,938
Total current assets	5,046,361	3,939,528
Property and equipment, net	157,950	231,886
Intangible and other assets, net	1,760,199	1,952,678
Goodwill	1,279,762	1,279,762
Deferred tax assets, net	231,452	529,602
Total assets	8,475,724	7,933,456
Current liabilities:
Accounts payable	417,836	401,131
Accrued expenses and other current liabilities	92,574	65,849
Customer deposits	77,784	69,090
Deferred revenue	194,087	178,724
Current portion of notes payable	7,846	7,425
Current portion of capital lease obligations	4,634	4,397
Total current liabilities	794,761	726,616
Capital lease obligations, net of current portion	1,776	6,410
Notes payable, net of current portion	8,365	16,245
Total liabilities	$ 804,902	$ 749,271
Commitments and contingencies
Contingently redeemable non-controlling interest	$ 936,370	$ 974,019
Equity:
Preferred stock, $0.001 par value; 5,000,000 shares authorized; none issued or outstanding
Common stock, $0.001 par value; 95,000,000 shares authorized; 23,822,295 (2015) and 24,266,827 (2014) shares issued, and 23,736,487 (2015) and 23,720,130 (2014) shares outstanding	$ 23,822	$ 24,266
Additional paid-in-capital	7,446,634	7,428,754
Treasury stock of 85,808 (2015) and 546,697 (2014) shares	(177,916)	(150,849)
Accumulated deficit	(558,088)	(1,092,005)
Total equity	6,734,452	6,210,166
Total liabilities and stockholders' equity	$ 8,475,724	$ 7,933,456

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	95,000,000	95,000,000
Common stock, shares issued	23,822,295	24,266,827
Common stock, shares outstanding	23,736,487	23,720,130
Treasury stock, shares	85,808	546,697

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Revenues:
Service revenues	$ 9,074,516	$ 7,564,585
Product sales	1,209,619	1,085,671
Other revenue	111,334	114,676
Total revenues	10,395,469	8,764,932
Costs of revenues:
Labor and other costs of services	4,810,737	4,283,218
Costs of products	729,979	718,410
Total costs of revenues	5,540,716	5,001,628
Gross profit	4,854,753	3,763,304
Selling, general and administrative expenses	4,059,520	3,418,578
Income from operations	795,233	344,726
Other expense (income):
Interest expense	1,585	9,818
Other income, net	(770)	(3,204)
Income before income taxes	794,418	338,112
Income tax expense	298,150	140,876
Net income	496,268	197,236
Net loss attributable to non-controlling interest	37,649	31,859
Net Income attributable to Where Food Comes From, Inc.	$ 533,917	$ 229,095
Net income per share:
Basic	$ 0.02	$ 0.01
Diluted	$ 0.02	$ 0.01
Weighted average number of common shares outstanding:
Basic	23,797,236	23,170,074
Diluted	23,974,374	23,400,068

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Operating activities:
Net income (loss)	$ 496,268	$ 197,236
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	256,272	225,638
Stock-based compensation expense	117,696	88,060
Common stock issued for services rendered		75,000
Deferred tax expense	298,150	140,876
Bad debt expense	7,742	5,185
Changes in operating assets and liabilities, net of effect from acquisitions:
Accounts receivable	(240,762)	(300,917)
Prepaid expenses and other assets	8,481	(33,362)
Accounts payable	16,705	123,498
Accrued expenses and other current liabilities	35,419	39,714
Deferred revenue	117,863	29,064
Net cash provided by operating activities	$ 1,113,834	589,992
Investing activities:
Acquisition of International Certification Services, Inc., remaining interest		(195,926)
Acquisition of Sterling Solutions, LLC		(150,000)
Purchase of other intangible assets		(65,000)
Purchases of property and equipment	$ (26,312)	(74,852)
Net cash used in investing activities	(26,312)	(485,778)
Financing activities:
Repayments of notes payable	(7,459)	(166,867)
Repayments of capital lease obligations	(4,397)	(4,174)
Restricted cash for line of credit collateral	$ 250,000	(250,000)
Proceeds from issuance of common stock		1,800,000
Proceeds from stock option exercise	$ 50,589	$ 32,348
Stock repurchase under Buyback Program	(177,916)
Net cash provided by financing activities	110,817	$ 1,411,307
Net change in cash and cash equivalents	1,198,339	1,515,521
Cash and cash equivalents at beginning of year	2,583,058	1,067,537
Cash and cash equivalents at end of year	$ 3,781,397	$ 2,583,058

Consolidated Statement of Equit

Consolidated Statement of Equity - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Treasury Stock [Member]	Accumulated Deficit [Member]	Noncontrolling Interest [Member]	Total
Balance, beginning at Dec. 31, 2013	$ 23,233	$ 5,216,327	$ (150,849)	$ (1,321,100)	$ 300,431	$ 4,068,042
Balance, beginning, shares at Dec. 31, 2013	22,686,786
Stock-based compensation expense		88,060				88,060
Issuance of common shares upon exercise of options	$ 60	32,288				32,348
Issuance of common shares upon exercise of options, shares	59,998
Acquisition of non-controlling interest of ICS		117,022			(312,948)	(195,926)
Acquisition of Sterling Solutions, LLC	$ 42	100,988				100,030
Acquisition of Sterling Solutions, LLC, shares	42,096
Issuance of common shares for acquisition-related consulting fees	$ 31	74,969				75,000
Issuance of common shares for acquisition-related consulting fees, shares	31,250
Private placement of shares of common stock	$ 900	1,799,100				1,800,000
Private placement of shares of common stock, shares	900,000
Net income				229,095	$ 12,517	241,612
Balance, ending at Dec. 31, 2014	$ 24,266	7,428,754	(150,849)	(1,092,005)		$ 6,210,166
Balance, ending, shares at Dec. 31, 2014	23,720,130					23,720,130
Stock-based compensation expense		117,696				$ 117,696
Issuance of common shares upon exercise of options	$ 93	50,496				$ 50,589
Issuance of common shares upon exercise of options, shares	93,165					93,165
Issuance of common shares to employees	$ 9	(9)
Issuance of common shares to employees, shares	9,000
Retirement of treasury shares	$ (546)	(150,303)	150,849
Stock repurchase on the open market			(177,916)			$ (177,916)
Stock repurchase on the open market, shares	(85,808)					85,808
Net income				533,917		$ 533,917
Balance, ending at Dec. 31, 2015	$ 23,822	$ 7,446,634	$ (177,916)	$ (558,088)		$ 6,734,452
Balance, ending, shares at Dec. 31, 2015	23,736,487					23,736,487

The Company and Basis of Presen

The Company and Basis of Presentation	12 Months Ended
	Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
The Company and Basis of Presentation	Note 1 - The Company and Basis of Presentation Business Overview Where Food Comes From, Inc. is a Colorado corporation based in Castle Rock, Colorado (“WFCF”, the “Company,” “our,” “we,” or “us”). We provide verification and certification solutions for the agriculture, livestock and food industry. Most of our customers are located throughout the United States. On February 29, 2012, we completed an acquisition of a 60% ownership investment in a North Dakota company, International Certification Services, Inc. (“ICS”). On March 1, 2014, the Company exercised its call option to purchase the remaining 40% interest of the stock of ICS in exchange for cash consideration making it a wholly-owned subsidiary (Note 3). On October 24, 2014, we acquired certain audit, assessment and verification business assets of Sterling Solutions, LLC (“Sterling”) (Note 3). We operate in one segment. Basis of Presentation Our consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues, costs and expenses during the reporting period. Actual results could differ from the estimates. The accompanying consolidated financial statements include the results of operations, financial position and cash flows of the Company and its subsidiaries. At December 31, 2015, our 100% owned subsidiary is ICS and our 60% owned subsidiary is Validus Ventures LLC. All intercompany balances have been eliminated in consolidation.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2015
Summary Of Significant Accounting Policies
Summary of Significant Accounting Policies	Note 2 - Summary of Significant Accounting Policies Cash and Cash Equivalents We place our cash with high quality financial institutions. At times, cash balances may exceed the FDIC insurance limit; however, we have not experienced any losses related to balances that exceed such FDIC insurance limits, and we believe our credit risk is minimal. At times, we may also invest in short-term investments with original maturities of three months or less, which we consider to be cash and cash equivalents, since they are readily convertible to cash. Restricted cash of $250,000 at December 31, 2014, represents a certificate of deposit with a financial institution that was required as collateral under a revolving line of credit agreement (Note 6). On May 8, 2015, the Company terminated this line of credit agreement. Upon termination, the certificate of deposit was released from restriction and is included in cash and cash equivalents at December 31, 2015. Revenue Recognition We offer a range of products and services to deploy and maintain identification, traceability, and verification systems and to facilitate customers’ participation in and compliance with the USDA’s Quality System Assessment, Process Verification and Export Verification Programs. We generate revenue primarily from the sale of our verification solutions, consulting services and hardware sales. We sell our products and services directly to customers at various levels in the livestock supply chain. Revenue is recognized when persuasive evidence of an agreement with the customer exists, delivery has occurred or services have been provided, the sales price is fixed or determinable, collectability is reasonably assured, and risk of loss and title have transferred to the customer. No single customer generated more than 10% of total net revenue in 2015 or 2014. Service revenues primarily consist of fees charged for verification audits and other verification services that the Company performs for customers. Revenue from verification audits is recognized upon completion of the audits. Contracts for these services are cancelable only for non-performance. In connection with certain arrangements, reimbursable expenses are incurred and billed to customers and such amounts are recognized as both revenue and cost of revenue. Deferred revenue represents payments received in advance from our customers for annual customer support services not yet performed as of December 31, and revenue is recognized as services are performed, generally over the one-year contract term. Customer deposits represent down-payments made in advance of a verification audit to be performed for a customer and deposits are applied to the customer’s accounts when invoiced. Revenues under contracts for consulting services are recognized when completed (for short-term projects). On occasion, we may enter into long-term projects, for which we use the percentage of completion method. No such long-term projects occurred during 2015 and 2014. Product sales are primarily generated from the sale of cattle identification ear tags. Revenue is recognized when goods are shipped and after title has transferred to the customer. Other revenue primarily represents the fees earned from our “WhereFoodComesFrom®” labeling program. Revenue is recognized when our customer, who has been granted a right to use our WhereFoodComesFrom® label, places this label on their product and ships their product. Revenue is billed based on pounds of product shipped. Generally, we do not provide right of return or warranty on product sales or services performed. Accounts Receivable and Allowance for Doubtful Accounts Our receivables are generally due from trade customers. Credit is extended based on our evaluation of the customer’s financial condition and generally, collateral is not required. Accounts receivable are generally due approximately 30 days from the invoice date and are stated at amounts due from customers, net of an allowance for doubtful accounts. Accounts receivable that are outstanding longer than the contractual payment terms are considered past due. We determine our allowance by considering a number of factors, including the length of time trade accounts receivable are past due, our previous loss and payment history, the customer’s current ability to pay its obligations to us and the condition of the general economy and the industry as a whole. We write off accounts receivable when they become uncollectible, and payments subsequently received on such receivables are credited to the allowance for doubtful accounts. The allowance for doubtful accounts was approximately $18,100 and $25,800, at December 31, 2015 and 2014, respectively. No single customer accounted for greater than 10% of our accounts receivable balances at December 31, 2015 and 2014. Cost of Revenues Cost of revenues includes the cost of products sold, which consists of livestock ear tags used in connection with the US Verified Source and Age Verification programs. Salaries and related fringe benefits directly associated with our verification services are allocated to cost of revenues. Livestock identification ear tags sold in connection with our verification offerings are purchased primarily from one supplier. However, there are numerous other companies which manufacture and market such ear tags. Fair Value Measurements The carrying value of cash and restricted cash, accounts receivable, and accounts payable approximate fair value due to their short maturities. The amounts shown for debt and notes payable also approximate fair value because current interest rates and terms offered to us for similar debt are substantially the same. Fair value accounting guidance defines fair value, establishes a framework for measuring fair value under GAAP and expands disclosures about fair value measurements, for both financial and non-financial assets. It also establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The fair value hierarchy consists of three broad levels, which are described below: · Level 1: Quoted prices in active markets for identical assets or liabilities that the entity has the ability to access. · Level 2: Observable inputs other than prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated with observable market data. · Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. Property and Equipment Property and equipment are recorded at cost and are depreciated using the straight-line method over the estimated useful lives of the respective assets. Land is not depreciated. Buildings are depreciated over 20 years. All other property and equipment have depreciable lives which range from two to seven years. Intangible Assets Our intangible assets consist of customer relationships, accreditations, a beneficial lease arrangement and tradename/trademarks related to our acquisitions, recorded at estimated fair value. Intangible assets also include certain trademark rights and the related costs incurred to obtain the trademark rights recorded at cost. Certain of these assets are subject to amortization using the straight-line method over the estimated useful lives of the respective assets (Note 5). In connection with the Validus acquisition, the Company allocated a portion of the purchase price to tradenames/trademarks. These tradenames/trademarks were determined to have an indefinite useful life and are not currently amortized. Authoritative guidance requires that intangible assets not subject to amortization (indefinite-lived assets) be tested for impairment on an annual basis, or more frequently if events or changes in circumstances indicate that the asset might be impaired. Impairment of Long-Lived Assets We review all of our long-lived assets (including intangible assets) for impairment at least annually or whenever impairment indicators are determined to be present. If an impairment exists, the amount of impairment is measured as the excess of the carrying amount of the asset over its fair value as determined utilizing estimated discounted future cash flows, or some other fair value measure, or the expected proceeds, net of costs to sell, upon sale of the asset. Significant judgments are required to estimate the fair value of intangible assets including estimating future cash flows, determining appropriate discount rates and other assumptions. Changes in these estimates and assumptions or the occurrence of one or more confirming events in future periods could cause the actual results or outcomes to materially differ from such estimates and could also affect the determination of fair value and/or impairment at future reporting dates. No impairment was identified on the Company’s long-lived assets through December 31, 2015. Goodwill and Other Non-Amortizable Intangible Assets Goodwill relates to our acquisitions of ICS and Validus. Both ICS and Validus are reporting units one level below our Certification and Verification Services segment. All other non-amortizable intangible assets relate to the trademarks/trade name acquired in the Validus acquisition and have an indefinite life. We review goodwill and non-amortizable intangible assets for impairment annually in the fourth quarter, or more frequently if impairment indicators arise. Impairment indicators include (i) a significant decrease in the market value of an asset (ii) a significant change in the extent or manner in which an asset is used or a significant physical change in an asset, (iii) a significant adverse change in legal factors or in the business climate that could affect the value of an asset or an adverse action by a regulator, and (iv) a current period operating or cash flow loss combined with a history of operating or cash flow losses or a projection or forecast that demonstrates continuing losses associated with an asset used for the purpose of producing revenue. We estimate a reporting unit’s fair value using a 5 to 13-year projection of discounted cash flows which incorporates planned growth rates, market-based discount rates and estimates of residual value. Additionally, we used a market-based, weighted-average cost of capital of approximately 15% to 19% to discount the projected cash flows of those operations. Estimating the fair value of individual reporting units requires us to make assumptions and estimates regarding our future plans, industry and economic conditions and our actual results and conditions may differ over time. If the carrying value of a reporting unit’s net assets exceeds its fair value, the second step is applied to measure the difference between the carrying value and implied fair value of goodwill. If the carrying value of goodwill exceeds its implied fair value, the goodwill is considered impaired and reduced to its implied fair value. In 2015 and 2014, there were no impairments of goodwill. Research and Development and Internal Use Software Development Costs Research and development costs are charged to operations as incurred. We did not incur any research and development expense in 2015 and 2014. Internal use software development costs represent the capitalization of certain external and internal computer software costs incurred during the application development stage. The application development stage is characterized by software design and configuration activities, coding, testing and installation. Training costs and maintenance are expensed as incurred, while upgrades and enhancements are capitalized if it is probable that such expenditures will result in additional functionality. Website software development costs related to certain planning and training costs incurred in the development of website software are expensed as incurred, while application development stage costs are capitalized. In 2013, we acquired certain assets of Validus, which included internally-developed software with an estimated fair value of $129,000. During 2015 and 2014, the amortization of capitalized costs totaled approximately $43,000 each year, included in depreciation expense (Note 4). Capitalized costs are included in property and equipment. Advertising Expenses Advertising costs are expensed as incurred. Total advertising expense for the years ended December 31, 2015 and 2014, were approximately $31,600 and $59,500, respectively. Income Taxes We compute income taxes using the asset and liability method. Under this method, deferred income taxes are recognized for differences between the basis of assets and liabilities for financial statement and income statement purposes using the enacted statutory rate in effect for the year these differences are expected to be taxable or deductible. Deferred income tax expense or benefit is based on the changes in the net deferred tax asset or liability from period to period. A deferred tax asset or liability is recognized whenever there are future tax effects from existing temporary differences and operating loss and tax credit carryforwards. If we determine that a deferred tax asset could be realized in a greater or lesser amount than recorded, the asset’s recorded amount is adjusted and the income statement is either credited or charged, respectively, in the period during which the determination is made. We reduce our deferred tax assets by a valuation allowance if we determine that it is more likely than not that some portion or all of these tax assets will not be realized. In making this determination, we consider various qualitative and quantitative factors, such as: · The level of historical taxable income and projections for future taxable income over periods in which the deferred tax assets would be deductible, · Accumulation of income (loss) before taxes utilizing a look-back period of three years. · Events within the industry, · The cyclical nature of our business, · The health of the economy, · Our future forecasts of taxable income, and · Historical trending. The recognition of our net deferred income tax assets requires significant management judgment regarding the interpretation of applicable statutes, the status of various income tax audits, and our particular facts and circumstances. We recognize the tax benefit from an uncertain tax position when we determine that it is more-likely-than-not that the position would be sustained upon examination by taxing authorities. The amount recognized is measured as the largest amount of benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. If we derecognize an uncertain tax position, our policy is to record any applicable interest and penalties within the provision for income tax. Management believes there are no current uncertain tax positions that would result in an asset or liability being recognized in the accompanying financial statements. Interest and penalties on unrecognized tax benefits, if any, are recognized as a component of income tax expense. We file income tax returns in the US federal jurisdiction and various state jurisdictions. We are no longer subject to US federal tax examination for years beginning before January 1, 2013, and the state tax returns that remain subject to examination include those for the years ended December 31, 2013 through the years ended December 31, 2015. Stock-Based Compensation The fair value of stock options is estimated using the Black-Scholes option-pricing model, which incorporates ranges of assumptions for inputs. Our assumptions are as follows: · Dividend yield is based on our historical and anticipated policy of not paying cash dividends. · Expected volatility assumptions were derived from our actual volatilities. · The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the date of grant with maturity dates approximately equal to the expected life at the grant date. · The expected term of options represents the period of time that options granted are expected to be outstanding giving consideration to vesting schedules, based on historical exercise patterns, which we believe are representative of future behavior. Our stock-based compensation cost for the years ended December 31, 2015 and 2014, was approximately $117,700 and $88,100, respectively, and has been included in income from operations. The fair value of stock-based awards, including restricted awards, granted during 2015 and 2014 (Note 9) was estimated using the following assumptions: 2015 2014 Stock-based awards granted 83,000 shares 30,334 shares Expected life of options from the date of grant 2.7 years 9 years Risk free interest rate 0.36% .11% - 1.59% Expected volatility 68.0% 77% - 195% Assumed dividend yield 0% 0% Recently Issued and Adopted Accounting Standards In November 2015, the Financial Accounting Standards Board (“FASB”) issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts from Customers We have considered all other recently issued accounting pronouncements and do not believe the adoption of such pronouncements will have a material impact on our consolidated financial statements. Reclassifications Certain prior year amounts have been reclassified to conform to the current year presentation. Net income and shareholders’ equity were not affected by these reclassifications.

Business Acquisitions

Business Acquisitions	12 Months Ended
	Dec. 31, 2015
Business Combinations [Abstract]
Business Acquisitions	Note 3 – Business Acquisitions Sterling Acquisition On October 24, 2014, an Asset Purchase Agreement (the “Purchase Agreement”) was entered into by and among Where Food Comes From, Inc. (“WFCF” or the “Company”), Sterling Solutions, LLC (“Sterling” or “the Seller”), and certain affiliates of the Seller. Pursuant to the Purchase Agreement, WFCF purchased and acquired customer relationships and trademarks of the Seller as of October 24, 2014 for aggregate consideration of $251,000, which included $150,000 in cash and 42,096 shares (the “Shares”) of common stock of WFCF valued at approximately $101,000 based upon the closing price of our stock on October 24, 2014, of $2.40 per share. The transaction was accounted for under the acquisition method of accounting and the purchase price was allocated primarily all to customer relationships, based on estimated fair value. The pro forma effects of Sterling on the Company’s consolidated results of operations for 2014, as if the acquisition had occurred on January 1, 2014 were not material. Validus Acquisition On September 16, 2013, we entered into an Asset Purchase and Contribution Agreement (the “Purchase Agreement”), by and among the Company, Validus Verification Services LLC (the “Buyer” or “Validus”), and Praedium Ventures, LLC (the “Seller”). Pursuant to the Purchase Agreement, WFCF caused Validus to be organized to purchase and acquire certain audit, assessment and verification business assets of the Seller. Such assets acquired included, but were not limited to, verification tools used in the acquired business, including the processes, procedures, systems and documents, intellectual property, a database, contracts and licenses and accounts receivable. In connection with this transaction, the Seller was also issued a 40% interest in Validus, with the Company holding a 60% interest. The Company has the first right of refusal on the remaining 40% of the outstanding stock. At any time following the thirty-month anniversary of the effective date of the Purchase Agreement, the Company shall have the option, but not the obligation, to purchase all the units (the 40% interest) of Validus held by Praedium, and Praedium shall have the option, but not the obligation, to require the Company to purchase all the units of Validus held by Praedium. The purchase price for the units shall be equal to the amount the selling holders of the units would be entitled to receive upon a liquidation of the Validus assuming all of the assets of Validus are sold for a purchase price equal to the product of eight and half times trailing twelve-month earnings before income taxes, depreciation and amortization, as defined. The Company intends to exercise its option to purchase the remaining 40% of Validus during the first quarter of 2016. Because Praedium, at its option, can require the Company to purchase its 40% interest in Validus, the Validus non-controlling interest meets the definition of a contingently redeemable non-controlling interest. Redeemable non-controlling interests are presented at the greater of their carrying amount or redemption value at the end of each reporting period and are shown as a separate caption between liabilities and equity (mezzanine section) in the accompanying balance sheet. ICS Acquisition On February 29, 2012, we entered into a Purchase and Exchange Agreement (the “Purchase Agreement”), by and among the Company and ICS, and other shareholders as individually named in the Agreement (collectively the “Sellers”). Pursuant to the Purchase Agreement, on February 29, 2012 (the “Acquisition Date”), the Company acquired 60% of the issued and outstanding common stock of ICS. The Purchase Agreement also includes non-dilution provisions, and we had a right of first refusal on the remaining 40% of the outstanding stock. The transaction was accounted for using the acquisition method of accounting. On March 1, 2014, the Company exercised its call option to purchase the remaining 40% interest of the stock of ICS in exchange for cash consideration of approximately $196,000, pursuant to the Purchase Agreement. The carrying amount of the non-controlling interest was adjusted to $0 to reflect the change in the Company’s ownership interest up to 100%. The difference between the fair value of the consideration paid and the carrying value of the non-controlling interest on the date of the transaction was adjusted to equity.

Property and Equipment

Property and Equipment	12 Months Ended
	Dec. 31, 2015
Property And Equipment
Property and Equipment	Note 4 - Property and Equipment The major categories of property and equipment are as follows as of December 31: 2015 2014 Automobiles $ 47,397 $ 47,397 Furniture and office equipment 139,918 136,627 Software and tools 375,257 381,713 Website development and other enhancements 183,385 183,385 Building and leasehold improvements 50,747 50,747 Land 2,436 2,436 799,140 802,305 Less accumulated depreciation 641,190 570,419 Property and equipment, net $ 157,950 $ 231,886 Depreciation expense for the years ended December 31, 2015 and 2014, was approximately $100,200 and $96,200, respectively.

Intangible Assets and Other Ass

Intangible Assets and Other Assets	12 Months Ended
	Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets and Other Assets	Note 5 – Intangible and Other Assets The following table summarizes our intangible assets as of December 31: Estimated 2015 2014 Useful life Intangible assets subject to amortization: Tradenames and Trademarks $ 64,307 $ 64,307 2.5 - 8.0 years Accreditations 88,663 88,663 5.0 years Customer Relationships 1,401,330 1,401,330 8.0 - 15.0 years Beneficial Lease Arrangement 120,200 120,200 11.0 years 1,674,500 1,674,500 Less accumulated amortization 392,846 236,822 1,281,654 1,437,678 Tradenames/trademarks (not subject to amortization) 465,000 465,000 1,746,654 1,902,678 Deposit 13,545 50,000 $ 1,760,199 $ 1,952,678 At December 31, 2014, the deposit represented an advance payment to a third-party institution for laboratory verification and testing services. The amount was written off during 2015 when it became uncertain whether the services would be utilized in the near future, or at all, due to changes in the global market and import/export requirements. At December 31, 2015, the deposit represents funds deposited with a property management company in anticipation of relocating our Castle Rock offices. The property is currently under construction and no lease agreement has been executed. Amortization expense for the years ended December 31, 2015 and 2014, was approximately $156,000 and $129,500, respectively. Future scheduled amortization of intangible assets is as follows: Fiscal year ending December 31: 2016 $ 155,072 2017 153,250 2018 148,589 2019 137,339 2020 116,860 Thereafter 570,544 $ 1,281,654

Notes Payable

Notes Payable	12 Months Ended
	Dec. 31, 2015
Debt Disclosure [Abstract]
Notes Payable	Note 6 - Notes Payable Equipment Note December 31, 2015 2014 Equipment note payable $ 16,211 $ 23,670 Less current portion of notes payable and other long-term debt 7,846 7,425 Notes payable and other long-term debt $ 8,365 $ 16,245 In 2012, we purchased a vehicle and entered into a note payable for $37,407 with interest and principal payments due in equal monthly installments of $715 over five years beginning January 2013. This note bears an interest rate of 5.5% per annum and is collateralized by the vehicle. Scheduled maturities under notes payable for the next five years and thereafter, as of December 31, 2015, are as follows: Year ending December 31: 2016 $ 7,846 2017 8,365 $ 16,211 Capital Lease In 2012, we entered into a capital lease for certain office equipment with a base rent of $405 per month. This 63-month lease expires in April 2017. Approximately $22,300 in asset cost has been included in property and equipment and is being amortized over 63 months. Imputed interest of 5.25% was used in determining the minimum lease payments. Castle Rock Bank Revolving Line Of Credit On September 2, 2014, the Company entered into a Business Loan Agreement (the “Agreement”) and a related promissory note (the “Note”) for a revolving line of credit with Castle Rock Bank. The term of the Agreement was until September 2, 2015, and provided for advances up to $500,000. The interest rate on any amounts borrowed under the Agreement was 3.75% per annum, payable monthly. All amounts borrowed under the Agreement and the Note were to be repaid by September 2, 2015 and could be prepaid without penalties. The Agreement contained certain customary affirmative and negative covenants. There were no amounts borrowed under this line of credit. On May 8, 2015, the Company terminated this Agreement without penalty. The Note was secured by a certificate of deposit in the amount of $250,000, which was included in restricted cash, and a security interest in 500,000 shares of WFCF common stock. The 500,000 shares are personally owned by John and Leann Saunders, significant shareholders, officers and members of the Company’s Board of Directors. Upon termination of the Agreement, the certificate of deposit was released from restriction and is included in cash at December 31, 2015. Unison Revolving Line of Credit The Company has a revolving line of credit (LOC) agreement which matures April 1, 2017. The LOC provides for $70,050 in working capital. The interest rate is at the New York prime rate plus 2.250% and is adjusted daily. Principal and interest are payable upon demand, but if demand is not made, then annual payments of accrued interest only are due, with the principal balance due on maturity. As of December 31, 2015, the effective interest rate was 5.75%. The LOC is collateralized by all the business assets of ICS. As of December 31, 2015, there were no amounts outstanding under this LOC.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Income Taxes	Note 7 - Income Taxes The reconciliation of income taxes calculated at the statutory rates to our effective tax rate is as follows: 2015 2014 Expected tax expense $ 270,102 $ 114,960 State tax provision, net 26,656 11,475 Permanent differences 13,278 53,604 Stock-based compensation and other — (28,854 ) Business tax credit applied (33,408 ) (37,622 ) Other, net 21,522 27,313 Income tax expense $ 298,150 $ 140,876 Deferred federal tax expense for 2015 and 2014 was $ 289,205 and $136,650, respectively. Deferred state tax expense for 2015 and 2014 was $8,945 and $4,226, respectively. At December 31, 2015, we had a charitable contribution carryforward of $23,105, which will expire between 2018 and 2019. The income tax effects of temporary differences that give rise to significant portions of deferred tax assets (liabilities) as of December 31, 2015 and 2014 are as follows: December 31, 2015 2014 Deferred tax assets (liabilities): Net operating loss carryforwards $ 296,543 $ 612,913 Accruals, stock based compensation and other 11,149 21,054 Property and equipment (3,123 ) (22,630 ) Intangible assets (81,666 ) (95,635 ) Charitable contributions 8,549 13,900 Net deferred tax assets $ 231,452 $ 529,602 As of December 31, 2015, our net operating loss carryforwards for U.S. federal income tax purposes, subject to the following expiration schedule, were as follows: NOL Established Amount NOL Expiration December 31, 2006 $ 92,632 December 31, 2026 December 31, 2007 365,518 December 31, 2027 December 31, 2013 343,317 December 31, 2033 Total tax carryforwards $ 801,467 Our unused net operating loss carryforwards may be applied against future taxable income.

Stock Buyback Plan

Stock Buyback Plan	12 Months Ended
	Dec. 31, 2015
Stock Buyback Plan
Stock Buyback Plan	Note 8 – Stock Buyback Plan On January 7, 2008, we announced our intention to buy back up to one million shares of our common stock from the open market at the quoted market price on the date of repurchase. No shares were repurchased in 2014. Activity under the Stock Buyback Plan by are as follows: Number of Cost of Average Shares purchased prior to 2015 546,697 $ 150,849 $ 0.28 Retirement of shares purchased (546,697 ) (150,849 ) $ (0.28 ) Shares purchased during 2015 85,808 177,916 $ 2.07 Total 85,808 $ 177,916 $ 2.07 The repurchased shares are recorded as part of treasury stock and are accounted for under the cost method. Our stock buyback plan has been and will be used to return capital to shareholders and to minimize the dilutive impact of stock options and other share-based awards. In the future, we may consider additional share repurchases under our plan based on several factors, including our cash position, share price, operational liquidity, and planned investment and financing needs.

Equity

Equity	12 Months Ended
	Dec. 31, 2015
Equity [Abstract]
Equity	Note 9 - Equity Common Stock On July 1, 2014, the Company completed the sale of 900,000 shares of its common stock to two investors for aggregate gross proceeds to the Company of $1,800,000. No fees were paid in connection with the transaction. 2006 Equity Incentive Plan The 2006 Equity Incentive Plan (the “Plan”) provides for the issuance of stock-based awards to employees, officers, directors and consultants. The Plan permits the granting of stock awards and stock options. The vesting of stock-based awards is generally subject to meeting certain performance based objectives, the passage of time or a combination of both, and continued employment through the vesting period. The Plan provides for the issuance of a maximum of 3,000,000 shares of our common stock, of which 286,834 shares were still available for issuance as of December 31, 2015. During the year ended December 31, 2015, 83,000 shares of restricted stock were granted, of which, 9,000 of these restricted shares vested at December 31, 2015. The restricted stock has a weighted average grant date fair value of $2.68 per share and vest over a weighted average period of 2.71 years. Unrecognized compensation expense related to this restricted stock at December 31, 2015, is approximately $173,000. Stock Option Activity Stock option activity during 2015 and 2014 is summarized as follows: Weighted Avg. Weighted Avg. Weighted Avg. Remaining Number of Exercise Price Fair Value Contractual Life Aggregate Options per Share per Share (in years) Intrinsic Value Outstanding, January 1, 2014 418,334 $ 0.66 $ 0.24 7.49 $ 560,443 Granted 30,334 $ 1.68 $ 1.88 8.08 Exercised (59,998 ) $ 0.54 $ 0.63 6.45 Expired (29,502 ) $ 0.75 $ 0.75 7.12 Outstanding, December 31, 2014 359,168 $ 0.76 $ 0.71 6.58 $ 768,869 Granted — $ — $ — — Exercised (93,165 ) $ 0.54 $ 0.33 3.49 Expired — $ — $ — — Outstanding, December 31, 2015 266,003 $ 0.84 $ 0.85 6.43 $ 416,278 Exercisable, December 31, 2015 221,830 $ 0.73 $ 0.73 6.19 $ 373,790 Unvested, December 31, 2015 44,173 $ 1.44 7.71 The aggregate intrinsic value of stock options represents the total pre-tax intrinsic value (the aggregate difference between the closing stock price of our common stock on December 31, 2015 and the exercise price for in-the-money options) that would have been received by the option holders if all in-the-money options had been exercised on December 31, 2015. During the year ended December 31, 2015, no stock-based awards were forfeited. During the year ended December 31, 2014, a total of 29,502 options issued under the Plan were forfeited, 18,334 of which were vested and 11,168 which were unvested. The options were exercisable at an average of $0.75 per share and were forfeited upon the employees’ termination from the Company. The following table summarizes the activity and value of non-vested options as of and for the fiscal year ended December 31, 2015: Weighted Avg Number of Grant Date Options Fair Value Non-vested options, December 31, 2014 105,843 $ 1.33 Granted — $ — Vested (61,670 ) $ 1.26 Forfeited — $ — Non-vested options, December 31, 2015 44,173 $ 1.44 At December 31, 2015, the Company had unrecognized expense relating to stock options that are expected to vest totaling $29,700. The weighted average period over which these options are expected to vest is less than 3 years.

Basic and Diluted Net Income pe

Basic and Diluted Net Income per Share	12 Months Ended
	Dec. 31, 2015
Net income per share:
Basic and Diluted Net Income per Share	Note 10 - Basic and Diluted Net Income per Share Basic net income per share was computed by dividing income available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted net income per share is based on the assumption that all dilutive convertible shares and stock options were converted or exercised. Dilution is computed by applying the treasury stock method. Under this method, options and warrants are assumed to be exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period. The following is a reconciliation of the share data used in the basic and diluted income per share computations: Year ended December 31, 2015 2014 Basic: Weighted average shares outstanding 23,797,236 23,170,074 Diluted: Weighted average shares outstanding 23,797,236 23,170,074 Weighted average effects of dilutive securities 177,138 229,994 Total 23,974,374 23,400,068 Antidilutive securities: 95,834 129,174

Related Party Transactions

Related Party Transactions	12 Months Ended
	Dec. 31, 2015
Related Party Transactions [Abstract]
Related Party Transactions	Note 11 - Related Party Transactions In 2015 and 2014, we recorded total net revenue of approximately $16,000 and $12,500, respectively, from related parties. The related parties consisted of a business owned by the father of Leann Saunders, our President, and businesses owned by two members of our Board of Directors.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 12 – Commitments and Contingencies Operating Leases The Company leases a building for our headquarters in Castle Rock, Colorado. This lease was for a period of three years and expired on June 15, 2015. The lease was renewed effective June 15, 2015, for a nine-month term. In addition to the primary rent, the lease requires additional payments for operating costs and other common area maintenance costs. In September 2013, the Company entered into a lease agreement with a related party for our Urbandale, Iowa office space. The lease is for a period of three years, expiring October 31, 2016, and requires rental payments of approximately $2,600 per month. There is no renewal feature. In addition to primary rent, the lease requires additional payments for operating costs and other common area maintenance costs. The Company also owns approximately ¾ acre on which a 2,300 square foot building is located in Medina, North Dakota. The Company leases space in this building under a five-year lease with an expiration date of March 1, 2018. One additional option to renew for a five-year term exists and is deemed to automatically renew unless written notice is provided 60 days before the end of the term. The Company is charged a monthly rental rate of approximately $150 plus all utilities, taxes and other expenses based on actual expenses to maintain the building. Rent expense for the years ended December 31, 2015 and 2014, was approximately $121,300 and $117,700, respectively, including related-party rent expense of $29,391 and $29,765, respectively. Future minimum lease payments are as follows: Years Ending December 31, Total 2016 $ 46,594 2017 1,818 2018 303 Total lease commitments $ 48,715 Legal proceedings From time to time, we may become involved in various legal actions, administrative proceedings and claims in the ordinary course of business. We generally record losses for claims in excess of the limits of purchased insurance in earnings at the time and to the extent they are probable and estimable. Employee Benefit Plan The Company has established a 401(K) plan for the benefit of our employees. The Plan covers substantially all of our employees who have attained age 21. We may make a discretionary matching contribution in an amount that is determined by our Board of Directors. If a matching contribution is made, the amount cannot exceed the elective deferral contributions. For the years ended December 31, 2015 and 2014, we made matching contributions of approximately $26,300 and $24,500, respectively. Redeemable Non-controlling Interest Redeemable non-controlling interest on our consolidated balance sheets represent the non-controlling interest related to the Validus acquisition (see Note 3), in which Praedium, at its election, can require the Company to purchase its 40% investment in Validus. Below reflects the activity of the redeemable non-controlling interest as of and for the years ended December 31, 2015 and 2014. Balance, January 1, 2014 $ 1,018,396 Net loss attributable to non-controlling interest for the year ended December 31, 2014 (44,377 ) Balance, December 31, 2014 974,019 Net loss attributable to non-controlling interest for the year ended December 31, 2015 (37,649 ) Balance, December 31, 2015 $ 936,370

Supplemental Cash Flow Informat

Supplemental Cash Flow Information	12 Months Ended
	Dec. 31, 2015
Supplemental Cash Flow Information [Abstract]
Supplemental Cash Flow Information	Note 13 – Supplemental Cash Flow Information Year to date ended December 31, 2015 2014 Cash paid during the year: Other interest $ 1,585 $ 6,970 Non-cash investing and financing activities: Common stock issued in connection with Sterling Solutions LLC $ — $ 101,030

Summary of Significant Accoun20

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2015
Summary Of Significant Accounting Policies
Cash and Cash Equivalents	Cash and Cash Equivalents We place our cash with high quality financial institutions. At times, cash balances may exceed the FDIC insurance limit; however, we have not experienced any losses related to balances that exceed such FDIC insurance limits, and we believe our credit risk is minimal. At times, we may also invest in short-term investments with original maturities of three months or less, which we consider to be cash and cash equivalents, since they are readily convertible to cash. Restricted cash of $250,000 at December 31, 2014, represents a certificate of deposit with a financial institution that was required as collateral under a revolving line of credit agreement (Note 6). On May 8, 2015, the Company terminated this line of credit agreement. Upon termination, the certificate of deposit was released from restriction and is included in cash and cash equivalents at December 31, 2015.
Revenue Recognition	Revenue Recognition We offer a range of products and services to deploy and maintain identification, traceability, and verification systems and to facilitate customers’ participation in and compliance with the USDA’s Quality System Assessment, Process Verification and Export Verification Programs. We generate revenue primarily from the sale of our verification solutions, consulting services and hardware sales. We sell our products and services directly to customers at various levels in the livestock supply chain. Revenue is recognized when persuasive evidence of an agreement with the customer exists, delivery has occurred or services have been provided, the sales price is fixed or determinable, collectability is reasonably assured, and risk of loss and title have transferred to the customer. No single customer generated more than 10% of total net revenue in 2015 or 2014. Service revenues primarily consist of fees charged for verification audits and other verification services that the Company performs for customers. Revenue from verification audits is recognized upon completion of the audits. Contracts for these services are cancelable only for non-performance. In connection with certain arrangements, reimbursable expenses are incurred and billed to customers and such amounts are recognized as both revenue and cost of revenue. Deferred revenue represents payments received in advance from our customers for annual customer support services not yet performed as of December 31, and revenue is recognized as services are performed, generally over the one-year contract term. Customer deposits represent down-payments made in advance of a verification audit to be performed for a customer and deposits are applied to the customer’s accounts when invoiced. Revenues under contracts for consulting services are recognized when completed (for short-term projects). On occasion, we may enter into long-term projects, for which we use the percentage of completion method. No such long-term projects occurred during 2015 and 2014. Product sales are primarily generated from the sale of cattle identification ear tags. Revenue is recognized when goods are shipped and after title has transferred to the customer. Other revenue primarily represents the fees earned from our “WhereFoodComesFrom®” labeling program. Revenue is recognized when our customer, who has been granted a right to use our WhereFoodComesFrom® label, places this label on their product and ships their product. Revenue is billed based on pounds of product shipped. Generally, we do not provide right of return or warranty on product sales or services performed.
Accounts Receivable and Allowance for Doubtful Accounts	Accounts Receivable and Allowance for Doubtful Accounts Our receivables are generally due from trade customers. Credit is extended based on our evaluation of the customer’s financial condition and generally, collateral is not required. Accounts receivable are generally due approximately 30 days from the invoice date and are stated at amounts due from customers, net of an allowance for doubtful accounts. Accounts receivable that are outstanding longer than the contractual payment terms are considered past due. We determine our allowance by considering a number of factors, including the length of time trade accounts receivable are past due, our previous loss and payment history, the customer’s current ability to pay its obligations to us and the condition of the general economy and the industry as a whole. We write off accounts receivable when they become uncollectible, and payments subsequently received on such receivables are credited to the allowance for doubtful accounts. The allowance for doubtful accounts was approximately $18,100 and $25,800, at December 31, 2015 and 2014, respectively. No single customer accounted for greater than 10% of our accounts receivable balances at December 31, 2015 and 2014.
Cost of Revenues	Cost of Revenues Cost of revenues includes the cost of products sold, which consists of livestock ear tags used in connection with the US Verified Source and Age Verification programs. Salaries and related fringe benefits directly associated with our verification services are allocated to cost of revenues. Livestock identification ear tags sold in connection with our verification offerings are purchased primarily from one supplier. However, there are numerous other companies which manufacture and market such ear tags.
Fair Value Measurements	Fair Value Measurements The carrying value of cash and restricted cash, accounts receivable, and accounts payable approximate fair value due to their short maturities. The amounts shown for debt and notes payable also approximate fair value because current interest rates and terms offered to us for similar debt are substantially the same. Fair value accounting guidance defines fair value, establishes a framework for measuring fair value under GAAP and expands disclosures about fair value measurements, for both financial and non-financial assets. It also establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The fair value hierarchy consists of three broad levels, which are described below: · Level 1: Quoted prices in active markets for identical assets or liabilities that the entity has the ability to access. · Level 2: Observable inputs other than prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated with observable market data. · Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.
Property and Equipment	Property and Equipment Property and equipment are recorded at cost and are depreciated using the straight-line method over the estimated useful lives of the respective assets. Land is not depreciated. Buildings are depreciated over 20 years. All other property and equipment have depreciable lives which range from two to seven years.
Intangible Assets	Intangible Assets Our intangible assets consist of customer relationships, accreditations, a beneficial lease arrangement and tradename/trademarks related to our acquisitions, recorded at estimated fair value. Intangible assets also include certain trademark rights and the related costs incurred to obtain the trademark rights recorded at cost. Certain of these assets are subject to amortization using the straight-line method over the estimated useful lives of the respective assets (Note 5). In connection with the Validus acquisition, the Company allocated a portion of the purchase price to tradenames/trademarks. These tradenames/trademarks were determined to have an indefinite useful life and are not currently amortized. Authoritative guidance requires that intangible assets not subject to amortization (indefinite-lived assets) be tested for impairment on an annual basis, or more frequently if events or changes in circumstances indicate that the asset might be impaired.
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets We review all of our long-lived assets (including intangible assets) for impairment at least annually or whenever impairment indicators are determined to be present. If an impairment exists, the amount of impairment is measured as the excess of the carrying amount of the asset over its fair value as determined utilizing estimated discounted future cash flows, or some other fair value measure, or the expected proceeds, net of costs to sell, upon sale of the asset. Significant judgments are required to estimate the fair value of intangible assets including estimating future cash flows, determining appropriate discount rates and other assumptions. Changes in these estimates and assumptions or the occurrence of one or more confirming events in future periods could cause the actual results or outcomes to materially differ from such estimates and could also affect the determination of fair value and/or impairment at future reporting dates. No impairment was identified on the Company’s long-lived assets through December 31, 2015.
Goodwill and Other Non-Amortizable Intangible Asset	Goodwill and Other Non-Amortizable Intangible Assets Goodwill relates to our acquisitions of ICS and Validus. Both ICS and Validus are reporting units one level below our Certification and Verification Services segment. All other non-amortizable intangible assets relate to the trademarks/trade name acquired in the Validus acquisition and have an indefinite life. We review goodwill and non-amortizable intangible assets for impairment annually in the fourth quarter, or more frequently if impairment indicators arise. Impairment indicators include (i) a significant decrease in the market value of an asset (ii) a significant change in the extent or manner in which an asset is used or a significant physical change in an asset, (iii) a significant adverse change in legal factors or in the business climate that could affect the value of an asset or an adverse action by a regulator, and (iv) a current period operating or cash flow loss combined with a history of operating or cash flow losses or a projection or forecast that demonstrates continuing losses associated with an asset used for the purpose of producing revenue. We estimate a reporting unit’s fair value using a 5 to 13-year projection of discounted cash flows which incorporates planned growth rates, market-based discount rates and estimates of residual value. Additionally, we used a market-based, weighted-average cost of capital of approximately 15% to 19% to discount the projected cash flows of those operations. Estimating the fair value of individual reporting units requires us to make assumptions and estimates regarding our future plans, industry and economic conditions and our actual results and conditions may differ over time. If the carrying value of a reporting unit’s net assets exceeds its fair value, the second step is applied to measure the difference between the carrying value and implied fair value of goodwill. If the carrying value of goodwill exceeds its implied fair value, the goodwill is considered impaired and reduced to its implied fair value. In 2015 and 2014, there were no impairments of goodwill.
Research and Development, Software Development Costs, and Internal Use Software Development Costs	Research and Development and Internal Use Software Development Costs Research and development costs are charged to operations as incurred. We did not incur any research and development expense in 2015 and 2014. Internal use software development costs represent the capitalization of certain external and internal computer software costs incurred during the application development stage. The application development stage is characterized by software design and configuration activities, coding, testing and installation. Training costs and maintenance are expensed as incurred, while upgrades and enhancements are capitalized if it is probable that such expenditures will result in additional functionality. Website software development costs related to certain planning and training costs incurred in the development of website software are expensed as incurred, while application development stage costs are capitalized. In 2013, we acquired certain assets of Validus, which included internally-developed software with an estimated fair value of $129,000. During 2015 and 2014, the amortization of capitalized costs totaled approximately $43,000 each year, included in depreciation expense (Note 4). Capitalized costs are included in property and equipment.
Advertising Expenses	Advertising Expenses Advertising costs are expensed as incurred. Total advertising expense for the years ended December 31, 2015 and 2014, were approximately $31,600 and $59,500, respectively.
Income Taxes	Income Taxes We compute income taxes using the asset and liability method. Under this method, deferred income taxes are recognized for differences between the basis of assets and liabilities for financial statement and income statement purposes using the enacted statutory rate in effect for the year these differences are expected to be taxable or deductible. Deferred income tax expense or benefit is based on the changes in the net deferred tax asset or liability from period to period. A deferred tax asset or liability is recognized whenever there are future tax effects from existing temporary differences and operating loss and tax credit carryforwards. If we determine that a deferred tax asset could be realized in a greater or lesser amount than recorded, the asset’s recorded amount is adjusted and the income statement is either credited or charged, respectively, in the period during which the determination is made. We reduce our deferred tax assets by a valuation allowance if we determine that it is more likely than not that some portion or all of these tax assets will not be realized. In making this determination, we consider various qualitative and quantitative factors, such as: · The level of historical taxable income and projections for future taxable income over periods in which the deferred tax assets would be deductible, · Accumulation of income (loss) before taxes utilizing a look-back period of three years. · Events within the industry, · The cyclical nature of our business, · The health of the economy, · Our future forecasts of taxable income, and · Historical trending. The recognition of our net deferred income tax assets requires significant management judgment regarding the interpretation of applicable statutes, the status of various income tax audits, and our particular facts and circumstances. We recognize the tax benefit from an uncertain tax position when we determine that it is more-likely-than-not that the position would be sustained upon examination by taxing authorities. The amount recognized is measured as the largest amount of benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. If we derecognize an uncertain tax position, our policy is to record any applicable interest and penalties within the provision for income tax. Management believes there are no current uncertain tax positions that would result in an asset or liability being recognized in the accompanying financial statements. Interest and penalties on unrecognized tax benefits, if any, are recognized as a component of income tax expense. We file income tax returns in the US federal jurisdiction and various state jurisdictions. We are no longer subject to US federal tax examination for years beginning before January 1, 2013, and the state tax returns that remain subject to examination include those for the years ended December 31, 2013 through the years ended December 31, 2015.
Stock-Based Compensation	Stock-Based Compensation The fair value of stock options is estimated using the Black-Scholes option-pricing model, which incorporates ranges of assumptions for inputs. Our assumptions are as follows: · Dividend yield is based on our historical and anticipated policy of not paying cash dividends. · Expected volatility assumptions were derived from our actual volatilities. · The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the date of grant with maturity dates approximately equal to the expected life at the grant date. · The expected term of options represents the period of time that options granted are expected to be outstanding giving consideration to vesting schedules, based on historical exercise patterns, which we believe are representative of future behavior. Our stock-based compensation cost for the years ended December 31, 2015 and 2014, was approximately $117,700 and $88,100, respectively, and has been included in income from operations. The fair value of stock-based awards, including restricted awards, granted during 2015 and 2014 (Note 9) was estimated using the following assumptions: 2015 2014 Stock-based awards granted 83,000 shares 30,334 shares Expected life of options from the date of grant 2.7 years 9 years Risk free interest rate 0.36% .11% - 1.59% Expected volatility 68.0% 77% - 195% Assumed dividend yield 0% 0%
Recently Issued Accounting Standards	Recently Issued and Adopted Accounting Standards In November 2015, the Financial Accounting Standards Board (“FASB”) issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts from Customers We have considered all other recently issued accounting pronouncements and do not believe the adoption of such pronouncements will have a material impact on our consolidated financial statements.

Summary of Significant Accoun21

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2015
Summary Of Significant Accounting Policies Tables
Schedule of assumptions used in assessing fair value of stock awards	The fair value of stock-based awards, including restricted awards, granted during 2015 and 2014 (Note 9) was estimated using the following assumptions: 2015 2014 Stock-based awards granted 83,000 shares 30,334 shares Expected life of options from the date of grant 2.7 years 9 years Risk free interest rate 0.36% .11% - 1.59% Expected volatility 68.0% 77% - 195% Assumed dividend yield 0% 0%

Property and Equipment (Tables)

Property and Equipment (Tables)	12 Months Ended
	Dec. 31, 2015
Property And Equipment Tables
Schedule of property and equipment	The major categories of property and equipment are as follows as of December 31: 2015 2014 Automobiles $ 47,397 $ 47,397 Furniture and office equipment 139,918 136,627 Software and tools 375,257 381,713 Website development and other enhancements 183,385 183,385 Building and leasehold improvements 50,747 50,747 Land 2,436 2,436 799,140 802,305 Less accumulated depreciation 641,190 570,419 Property and equipment, net $ 157,950 $ 231,886

Intangible Assets and Other A23

Intangible Assets and Other Assets (Tables)	12 Months Ended
	Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of intangible and other assets	The following table summarizes our intangible assets as of December 31: Estimated 2015 2014 Useful life Intangible assets subject to amortization: Tradenames and Trademarks $ 64,307 $ 64,307 2.5 - 8.0 years Accreditations 88,663 88,663 5.0 years Customer Relationships 1,401,330 1,401,330 8.0 - 15.0 years Beneficial Lease Arrangement 120,200 120,200 11.0 years 1,674,500 1,674,500 Less accumulated amortization 392,846 236,822 1,281,654 1,437,678 Tradenames/trademarks (not subject to amortization) 465,000 465,000 1,746,654 1,902,678 Deposit 13,545 50,000 1,760,199 $ 1,952,678
Schedule of future scheduled amortization	Future scheduled amortization of intangible assets is as follows: Fiscal year ending December 31: 2016 $ 155,072 2017 153,250 2018 148,589 2019 137,339 2020 116,860 Thereafter 570,544 $ 1,281,654

Notes Payable (Tables)

Notes Payable (Tables)	12 Months Ended
	Dec. 31, 2015
Debt Disclosure [Abstract]
Schedule of notes payable	Equipment Note December 31, 2015 2014 Equipment note payable $ 16,211 $ 23,670 Less current portion of notes payable and other long-term debt 7,846 7,425 Notes payable and other long-term debt $ 8,365 $ 16,245
Schedule of maturity of notes payable	Scheduled maturities under notes payable for the next five years and thereafter, as of December 31, 2015, are as follows: Year ending December 31: 2016 $ 7,846 2017 8,365 $ 16,211

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2015
Income Taxes Tables
Schedule of reconciliation of income taxes	The reconciliation of income taxes calculated at the statutory rates to our effective tax rate is as follows: 2015 2014 Expected tax expense $ 270,102 $ 114,960 State tax provision, net 26,656 11,475 Permanent differences 13,278 53,604 Stock-based compensation and other — (28,854 ) Business tax credit applied (33,408 ) (37,622 ) Other, net 21,522 27,313 Income tax expense $ 298,150 $ 140,876
Schedule of deferred tax assets and liabilities	The income tax effects of temporary differences that give rise to significant portions of deferred tax assets (liabilities) as of December 31, 2015 and 2014 are as follows: December 31, 2015 2014 Deferred tax assets (liabilities): Net operating loss carryforwards $ 296,543 $ 612,913 Accruals, stock based compensation and other 11,149 21,054 Property and equipment (3,123 ) (22,630 ) Intangibles assets (81,666 ) (95,635 ) Charitable contributions 8,549 13,900 Net deferred tax assets 231,452 529,602
Operating loss carry forward expiration schedule	As of December 31, 2015, our net operating loss carryforwards for U.S. federal income tax purposes, subject to the following expiration schedule, were as follows: NOL Established Amount NOL Expiration December 31, 2006 $ 92,632 December 31, 2026 December 31, 2007 365,518 December 31, 2027 December 31, 2013 343,317 December 31, 2033 Total tax carryforwards $ 801,467

Stock Buyback Plan (Tables)

Stock Buyback Plan (Tables)	12 Months Ended
	Dec. 31, 2015
Stock Buyback Plan Tables
Repurchased shares under the Stock Buyback Plan by year	Activity under the Stock Buyback Plan by are as follows: Number of Cost of Average Shares purchased prior to 2015 546,697 $ 150,849 $ 0.28 Retirement of shares purchased (546,697 ) (150,849 ) $ (0.28 ) Shares purchased during 2015 85,808 177,916 $ 2.07 Total 85,808 $ 177,916 $ 2.07

Equity (Tables)

Equity (Tables)	12 Months Ended
	Dec. 31, 2015
Equity Tables
Schedule of stock option activity	Stock option activity during 2015 and 2014 is summarized as follows: Weighted Avg. Weighted Avg. Weighted Avg. Remaining Number of Exercise Price Fair Value Contractual Life Aggregate Options per Share per Share (in years) Intrinsic Value Outstanding, January 1, 2014 418,334 $ 0.66 $ 0.24 7.49 $ 560,443 Granted 30,334 $ 1.68 $ 1.88 8.08 Exercised (59,998 ) $ 0.54 $ 0.63 6.45 Expired (29,502 ) $ 0.75 $ 0.75 7.12 Outstanding, December 31, 2014 359,168 $ 0.76 $ 0.71 6.58 $ 768,869 Granted — $ — $ — — Exercised (93,165 ) $ 0.54 $ 0.33 3.49 Expired — $ — $ — — Outstanding, December 31, 2015 266,003 $ 0.84 $ 0.85 6.43 $ 416,278 Exercisable, December 31, 2015 221,830 $ 0.73 $ 0.73 6.19 $ 373,790 Unvested, December 31, 2015 44,173 $ 1.44 7.71
Schedule of non-vested outstanding	The following table summarizes the activity and value of non-vested options as of and for the fiscal year ended December 31, 2015: Weighted Avg Number of Grant Date Options Fair Value Non-vested options, December 31, 2014 105,843 $ 1.33 Granted — $ — Vested (61,670 ) $ 1.26 Forfeited — $ — Non-vested options, December 31, 2015 44,173 $ 1.44

Basic and Diluted Net Income 28

Basic and Diluted Net Income per Share (Tables)	12 Months Ended
	Dec. 31, 2015
Net income per share:
Schedule of reconciliation of basic and diluted income (loss) per share computations	The following is a reconciliation of the share data used in the basic and diluted income per share computations: Year ended December 31, 2015 2014 Basic: Weighted average shares outstanding 23,797,236 23,170,074 Diluted: Weighted average shares outstanding 23,797,236 23,170,074 Weighted average effects of dilutive securities 177,138 229,994 Total 23,974,374 23,400,068 Antidilutive securities: 95,834 129,174

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Operating leases future minimum lease payments	Future minimum lease payments are as follows: Years Ending December 31, Total 2016 $ 46,594 2017 1,818 2018 303 Total lease commitments $ 48,715

Supplemental Cash Flow Inform30

Supplemental Cash Flow Information (Tables)	12 Months Ended
	Dec. 31, 2015
Supplemental Cash Flow Information [Abstract]
Schedule of supplemental cash flow information	Year to date ended December 31, 2015 2014 Cash paid during the year: Other interest $ 1,585 $ 6,970 Non-cash investing and financing activities: Common stock issued in connection with Sterling Solutions LLC $ — $ 101,030

The Company and Basis of Pres31

The Company and Basis of Presentation (Details Narrative)	Dec. 31, 2015	Mar. 01, 2014	Feb. 29, 2012
International Certification Services, Inc. [Member]
Percentage of business acquired	100.00%	40.00%	60.00%

Summary of Significant Accoun32

Summary of Significant Accounting Policies (Details) - shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Stock based awards granted	83,000	30,334
Expected life of options from date of grant	2 years 8 months 12 days	9 years
Risk free interest rate	0.36%
Expected Volatility	68.00%
Assumed dividend yield	0.00%	0.00%
Upper Range [Member]
Risk free interest rate		0.11%
Expected Volatility		77.00%
Lower Range [Member]
Risk free interest rate		1.59%
Expected Volatility		195.00%

Summary of Significant Accoun33

Summary of Significant Accounting Policies (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Restricted cash		$ 250,000
Allowance for doubtful accounts	$ 18,100	25,800
Amortization of capitalized software costs	43,000	43,000
Internally developed software acquired			$ 129,000
Advertising Expense	31,600	59,500
Stock-based compensation expense	$ 117,696	$ 88,060
Upper Range [Member]
Discount to the projected cash flows	15.00%
Projection term for cash flow	5 years
Lower Range [Member]
Discount to the projected cash flows	19.00%
Projection term for cash flow	13 years
Building [Member]
Depreciable lives	20 years
Other Property and Equipment [Member] | Upper Range [Member]
Depreciable lives	7 years
Other Property and Equipment [Member] | Lower Range [Member]
Depreciable lives	2 years
Revenue Concentration [Member]
Threshold for significant customer identification	10.00%	10.00%
Accounts Receivable Concentration [Member]
Threshold for significant customer identification	10.00%	10.00%

Business Acquisitions (Details

Business Acquisitions (Details Narrative) - USD ($)	Oct. 24, 2014	Mar. 01, 2014	Dec. 31, 2015	Dec. 31, 2014	Sep. 16, 2013	Feb. 29, 2012
Cash payments for acquisition				$ 150,000
Value of shares issued for acquisition				$ 100,030
Sterling Solutions, LLC [Member]
Total consideration for acquisition	$ 251,000
Cash payments for acquisition	$ 150,000
Shares issued for acquisition	42,096
Value of shares issued for acquisition	$ 101,000
Closing price of common stock	$ 2.40
Validus Acquisition [Member]
Percentage of business acquired					60.00%
Validus Acquisition [Member] | Praedium Ventures LLC [Member]
Percentage of business acquired					40.00%
International Certification Services, Inc. [Member]
Total consideration for acquisition		$ 196,000
Percentage of business acquired		40.00%	100.00%			60.00%
Non-controlling interest		$ 0
Ownership percentage		100.00%

Property and Equipment (Details

Property and Equipment (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Property And Equipment Details Narrative
Depreciation Expense	$ 100,200	$ 96,200

Property and Equipment (Detai36

Property and Equipment (Details) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Property and equipment, gross	$ 799,140	$ 802,305
Accumulated Depreciation	641,190	570,419
Property and equipment, net	157,950	231,886
Automobiles [Member]
Property and equipment, gross	47,397	47,397
Furniture and office equipment [Member]
Property and equipment, gross	139,918	136,627
Software and tools [Member]
Property and equipment, gross	375,257	381,713
Website development and other enhancements [Member]
Property and equipment, gross	183,385	183,385
Building and Leasehold Improvements [Member]
Property and equipment, gross	50,747	50,747
Land [Member]
Property and equipment, gross	$ 2,436	$ 2,436

Intangible Assets and Other A37

Intangible Assets and Other Assets (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization Expense	$ 156,000	$ 129,500

Intangible Assets and Other A38

Intangible Assets and Other Assets (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Intangible and other assets, gross	$ 1,674,500	$ 1,674,500
Accumulated amortization	392,846	236,822
Intangible and other assets, net	1,281,654	1,437,678
Tradenames/trademarks (not subject to amortization)	465,000	465,000
Intangible and other assets,Before deposit	1,746,654	1,902,678
Deposit	13,545	50,000
Intangible and other assets, net	1,760,199	1,952,678
Tradenames and Trademarks [Member]
Intangible and other assets, gross	$ 64,307	64,307
Tradenames and Trademarks [Member] | Lower Range [Member]
Estimated Useful Life	2 years 6 months
Tradenames and Trademarks [Member] | Upper Range [Member]
Estimated Useful Life	8 years
Accreditations [Member]
Intangible and other assets, gross	$ 88,663	88,663
Estimated Useful Life	5 years
Customer Relationships [Member]
Intangible and other assets, gross	$ 1,401,330	1,401,330
Customer Relationships [Member] | Lower Range [Member]
Estimated Useful Life	8 years
Customer Relationships [Member] | Upper Range [Member]
Estimated Useful Life	15 years
Beneficial lease arrangement [Member]
Intangible and other assets, gross	$ 120,200	$ 120,200
Estimated Useful Life	11 years

Intangible Assets and Other A39

Intangible Assets and Other Assets (Details 1) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Future scheduled amortization for the fiscal year ending December 31
2,016	$ 155,072
2,017	153,250
2,018	148,589
2,019	137,339
2,020	116,860
Thereafter	570,544
Intangible and other assets, net	$ 1,281,654	$ 1,437,678

Notes Payable (Details Narrativ

Notes Payable (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2012
Castle Rock Bank Revolving Line of Credit [Member]
Debt instrument, face amount	$ 500,000
Debt instrument, issuance date	Sep. 2, 2014
Maturity date on debt	Sep. 2, 2015
Effective interest rate	3.75%
Collateral description	Certificate of deposit and Security interest
Line of Credit, borrowing capacity	$ 500,000
Certificate of deposit collateralized	250,000
Security interest personally owned shares of the Company's stock (shares)	500,000
Revolving Line of Credit [Member]
Debt instrument, face amount	$ 70,050
Maturity date on debt	Apr. 1, 2017
Effective interest rate	5.75%
Interest rate, basis spread	2.25%
Interest rate description	NY Prime rate plus 2.250%
Collateral description	Collateralized by all the business assets of ICS
Office Equipment [Member]
Maturity date on lease		Apr. 1, 2017
Rent payments		$ 405
Asset cost, included in property and equipment		$ 22,300
Amorization period of leased assets		5 years 3 months
Effective interest rate		5.25%
Note Payable - Vehicle [Member]
Debt instrument, face amount		$ 37,407
Interest and principal payments		$ 715
Interest rate		5.50%
Debt instrument term		5 years
Collateral description		Vehicle

Notes Payable (Details)

Notes Payable (Details) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Notes payable
Equipment Note Payable	$ 16,211	$ 23,670
Less current portion of notes payable and other long-term debt	(7,846)	(7,425)
Notes payable	$ 8,365	$ 16,245

Notes Payable (Details 1)

Notes Payable (Details 1)	Dec. 31, 2015USD ($)
Maturities of Notes Payable for the years ending December 31
2,016	$ 7,846
2,017	8,365
Notes Payable	$ 16,211

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Deferred federal tax expense	$ 289,205	$ 136,650
Deferred state tax expense	8,945	$ 4,226
Charitable contribution carryforward	$ 23,105

Income Taxes (Details)

Income Taxes (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Expected tax expense	$ 270,102	$ 114,960
State tax provision, net	26,656	11,475
Permanent differences	13,278	53,604
Stock-based compensation and other		(28,854)
Business tax credit applied	(33,408)	(37,622)
Other, net	21,522	27,313
Total income tax expense (benefit)	$ 298,150	$ 140,876

Income Taxes (Details 1)

Income Taxes (Details 1) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Deferred Tax assets (liabilities):
Net operating loss carryforwards	$ 296,543	$ 612,913
Accruals, stock based compensation and other	11,149	21,054
Property and equipment	(3,123)	(22,630)
Intangibles assets	(81,666)	(95,635)
Charitable contributions	8,549	13,900
Net deferred tax assets	$ 231,452	$ 529,602

Income Taxes (Details 2)

Income Taxes (Details 2) - USD ($)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2007	Dec. 31, 2006	Dec. 31, 2015
Operating loss carry forward expiration schedule
Operating loss carryforwards amount				$ 801,467
U.S. Federal income tax [Member]
Operating loss carry forward expiration schedule
Operating loss carryforwards amount	$ 343,317	$ 365,518	$ 92,632
Expiration dates	Dec. 31, 2033	Dec. 31, 2027	Dec. 31, 2026

Stock Buyback Plan (Details)

Stock Buyback Plan (Details) - USD ($)	12 Months Ended	72 Months Ended	96 Months Ended
	Dec. 31, 2015	Dec. 31, 2013	Dec. 31, 2015
Stock Buyback Plan Details
Cost of shares	$ 177,916	$ 150,849	$ 177,916
Number of shares	85,808	546,697	85,808
Average cost per share	$ 2.07	$ 0.28	$ 2.07
Retirement of shares purchased			$ (150,849)
Retirement of shares purchased, shares			(546,697)
Retirement of shares purchased, average cost per share			$ (0.28)

Equity (Details Narrative)

Equity (Details Narrative) - USD ($)	Jun. 29, 2014	Dec. 31, 2015	Dec. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Numbers of share issued	900,000
Numbers of shares issued, value	$ 1,800,000		$ 1,800,000
Shares authorized for issuance under incentive plan		3,000,000
Shares available for issuance		286,834
Restricted stock units granted		83,000	30,334
Restricted stock units granted, vested		9,000
Restricted stock units weighted average grant date fair value		$ 2.68
Restricted stock weighted average period		2 years 8 months 16 days
Compensation cost not yet recognized, restricted stock		$ 173,000
Numbers of forfeited option vested			18,334
Numbers of forfeited option nonvested			11,168
Compensation cost not yet recognized, options		$ 29,700
Unrecognized compensation expense period		3 years

Equity (Details)

Equity (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Options
Balance, beginning	359,168	418,334
Granted		30,334
Exercised	(93,165)	(59,998)
Expired		(29,502)
Balance, ending	266,003	359,168
Exercisable	221,830
Unvested Balance	44,173	105,843
Weighted Average Exercise Price per Share
Balance, beginning	$ .76	$ 0.66
Granted		1.68
Exercised	$ 0.54	0.54
Expired		0.75
Balance, ending	$ .84	.76
Exercisable	.73
Weighted Average Fair Value per Share
Balance, beginning	$ .71	0.24
Granted		1.88
Exercised	$ .33	0.63
Expired		0.75
Balance, ending	$ .85	.71
Exercisable	.73
Unvested Balance	$ 1.44	$ 1.33
Weighted Average Remaining Contractual Life (in years)
Balance, beginning	6 years 6 months 29 days	7 years 5 months 27 days
Granted		8 years 29 days
Exercised	3 years 5 months 27 days	6 years 5 months 12 days
Expired		7 years 1 month 13 days
Balance ending	6 years 5 months 5 days	6 years 6 months 29 days
Exercisable	6 years 2 months 8 days
Unvested	7 years 8 months 16 days
Aggregate Intrinsic Value
Balance, beginning	$ 768,869	$ 560,443
Balance, ending	416,278	$ 768,869
Exercisable	$ 373,790

Equity (Details 1)

Equity (Details 1) - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Non-vested Options
Unvested Balance	105,843
Grants		30,334
Vested	(61,670)
Forfeited		11,168
Unvested Balance	44,173	105,843
Weighted Average Grant Date Fair Value
Unvested Balance	$ 1.33
Grants		$ 1.88
Vested	$ 1.26
Forfeited
Unvested Balance	$ 1.44	$ 1.33

Basic and Diluted Net Income 51

Basic and Diluted Net Income per Share (Details) - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Basic:
Weighted average shares outstanding - basic	23,797,236	23,170,074
Diluted:
Weighted average effects of dilutive securities	177,138	229,994
Weighted average shares outstanding - diluted	23,974,374	23,400,068
Antidilutive securities	$ 95,834	$ 129,174

Related Party Transactions (Det

Related Party Transactions (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Related Party Transactions Details Narrative
Revenue from related parties	$ 16,000	$ 12,500

Commitments and Contingencies53

Commitments and Contingencies (Details Narrative)	Sep. 16, 2013USD ($)	Dec. 31, 2015USD ($)aft²	Dec. 31, 2014USD ($)
Rent expenses		$ 121,300	$ 117,700
Discretionary matching contribution		26,300	24,500
Related Party [Member]
Rent expenses		$ 29,391	$ 29,765
North Dakota Office [Member]
Term of the operating lease		5 years
Corporate office, monthly rental rate		$ 150
Area of land owned on which building is lease | a		0.75
Number of square foot of building leased | ft²		2,300
Period before end of lease term		60
Lease expiration date		Mar. 1, 2018
Validus Acquisition [Member] | Praedium Ventures LLC [Member]
Term of the operating lease	3 years
Corporate office, monthly rental rate	$ 2,600
Lease expiration date	Oct. 31, 2016

Commitments and Contingencies54

Commitments and Contingencies (Details)	Dec. 31, 2015USD ($)
Operating leases future minimum lease payments
2,016	$ 46,594
2,017	1,818
2,018	303
Total lease commitments	$ 48,715

Commitments and Contingencies55

Commitments and Contingencies (Details 1) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Redeemable noncontrolling interest, beginning	$ 974,019
Redeemable noncontrolling interest, ending	936,370	$ 974,019
Validus Acquisition [Member]
Redeemable noncontrolling interest, beginning	974,019	1,018,396
Net income (loss) attributable to noncontrolling interest	(37,649)	(44,377)
Redeemable noncontrolling interest, ending	$ 901,435	$ 974,019

Supplemental Cash Flow Inform56

Supplemental Cash Flow Information (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Cash paid during the year:
Interest	$ 1,585	$ 6,970
Non-cash investing and financing activities:
Common stock issued in connection with Sterling Solutions LLC asset purchase		$ 101,030