AudioEye (AEYE) 10-K 11 Mar 21 2020 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2020	Mar. 05, 2021	Jun. 30, 2020
Document and Entity Information
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY
Entity Registrant Name	AUDIOEYE INC
Entity Central Index Key	0001362190
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Trading Symbol	AEYE
Title of 12(b) Security	Common Stock, par value $0.00001 per share
Security Exchange Name	NASDAQ
Entity Shell Company	false
ICFR Auditor Attestation Flag	false
Entity Common Stock, Shares Outstanding		10,705,684
Entity Interactive Data Current	Yes
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Public Float			$ 52,997,510

BALANCE SHEETS

BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Current assets:
Cash	$ 9,095	$ 1,972
Accounts receivable, net of allowance for doubtful accounts of $79 and $63, respectively	5,096	2,958
Unbilled receivables		160
Deferred costs, short term	152	183
Debt issuance costs, net		137
Prepaid expenses and other current assets	288	198
Total current assets	14,631	5,608
Property and equipment, net of accumulated depreciation of $209 and $124, respectively	91	156
Right of use assets	617	827
Deferred costs, long term	77	145
Intangible assets, net of accumulated amortization of $4,238 and $3,710, respectively	2,137	1,715
Goodwill	701	701
Total assets	18,254	9,152
Current liabilities:
Accounts payable and accrued expenses	2,190	973
Finance lease liabilities	49	52
Operating lease liabilities	229	209
Warrant liability		120
Deferred revenue	6,328	5,372
Term loan, short term	219	0
Total current liabilities	9,015	6,726
Long term liabilities:
Finance lease liabilities	12	52
Operating lease liabilities	427	655
Deferred revenue	83	153
Term loan, long term	1,083	0
Total liabilities	10,620	7,586
Stockholders' equity:
Preferred stock, value
Common stock, $0.00001 par value, 50,000 shares authorized, 10,130 and 8,877 shares issued and outstanding as of December 31, 2020 and 2019, respectively	1	1
Additional paid-in capital	64,716	51,490
Accumulated deficit	(57,084)	(49,926)
Total stockholders' equity	7,634	1,566
Total liabilities and stockholders' equity	18,254	9,152
Series A Preferred Stock
Stockholders' equity:
Preferred stock, value	$ 1	$ 1

BALANCE SHEETS (Parenthetical)

BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Allowance for doubtful accounts	$ 79	$ 63
Property plant and equipment, accumulated depreciation	209	124
Intangible assets, accumulated amortization	$ 4,328	$ 3,710
Preferred Stock, Par or Stated Value Per Share	$ 0.00001
Preferred Stock, Shares Authorized	10,000,000
Common Stock, Par or Stated Value Per Share	$ 0.00001
Common Stock, Shares Authorized	50,000,000
Common Stock, Shares, Issued	10,130,000	8,877,000
Common Stock, Shares, Outstanding	10,130,000	8,877,000
Series A Preferred Stock
Preferred Stock, Par or Stated Value Per Share	$ 0.00001
Preferred Stock, Shares Authorized	200,000
Preferred Stock, Shares Issued	90,000	105,000
Preferred Stock, Shares Outstanding	90,000	105,000

STATEMENTS OF OPERATIONS

STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
STATEMENTS OF OPERATIONS
Revenue	$ 20,475	$ 10,765
Cost of revenue	5,961	4,406
Gross profit	14,514	6,359
Operating expenses:
Selling and marketing	8,472	5,708
Research and development	1,230	636
General and administrative	11,945	7,833
Total operating expenses	21,647	14,177
Operating loss	(7,133)	(7,818)
Other income (expense):
Other income		12
Change in fair value of warrant liability	120	99
Interest expense	(145)	(76)
Total other income (expense)	(25)	35
Net loss	(7,158)	(7,783)
Dividends on Series A Convertible Preferred Stock	(51)	(52)
Net loss available to common stockholders	$ (7,209)	$ (7,835)
Net loss per common share-basic and diluted	$ (0.77)	$ (0.97)
Weighted average common shares outstanding-basic and diluted	9,313	8,107

STATEMENTS OF STOCKHOLDERS' EQU

STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Unrestricted Shares of Common Stock	Preferred Stock	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]	Total
Balance at Dec. 31, 2018	$ 1	$ 1	$ 48,017	$ (42,143)	$ 5,876
Balance (in shares) at Dec. 31, 2018	7,580	105
Common stock issued in exchange for exercise of options and warrants			2,257		2,257
Common stock issued in exchange for exercise of options and warrants (in shares)	1,297
Common stock issued in exchange for exercise of options on a cashless basis			1,216		1,216
Share-based compensation			1,216		1,216
Net loss				(7,783)	(7,783)
Balance at Dec. 31, 2019	$ 1	$ 1	51,490	(49,926)	1,566
Balance (in shares) at Dec. 31, 2019	8,877	105
Issuance of common stock for cash, net of transaction expenses			7,824		7,824
Issuance of common stock for cash, net of transaction expenses (in shares)	473
Common stock issued upon conversion of preferred stock (in shares)	43	(15)
Common stock issued in exchange for exercise of warrants on a cashless basis (in shares)	267
Common stock issued in exchange for exercise of options on a cashless basis			4,138		4,138
Common stock issued upon exercise of warrants and options on a cash basis			1,264		1,264
Common stock issued upon exercise of warrants and options on a cash basis (in shares)	353
Common stock issued upon settlement of restricted stock units (in shares)	117
Share-based compensation			4,138		4,138
Net loss				(7,158)	(7,158)
Balance at Dec. 31, 2020	$ 1	$ 1	$ 64,716	$ (57,084)	$ 7,634
Balance (in shares) at Dec. 31, 2020	10,130	90

STATEMENTS OF CASH FLOWS

STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (7,158,000)	$ (7,783,000)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	963,000	723,000
Stock-based compensation expense	4,138,000	1,216,000
Amortization of deferred commissions	250,000	240,000
Amortization of debt issuance costs	137,000	82,000
Amortization of right of use assets	210,000	214,000
Change in fair value of warrant liability	(120,000)	(99,000)
Provision for accounts receivable	128,000	13,000
Changes in operating assets and liabilities:
Accounts receivable and unbilled receivables	(2,106,000)	(2,959,000)
Prepaid expenses and other assets	(241,000)	(447,000)
Accounts payable and accruals	1,215,000	879,000
Operating lease liability	(208,000)	(179,000)
Related party payables		(14,000)
Deferred revenue	886,000	2,497,000
Net cash used in operating activities	(1,906,000)	(5,617,000)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of equipment	0	(56,000)
Software development costs	(1,157,000)	(307,000)
Patent costs	(141,000)	0
Net cash used in investing activities	(1,298,000)	(363,000)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from common stock offering, net of transaction costs	7,824,000	0
Proceeds from term loan	1,302,000	0
Proceeds from exercise of options and warrants	1,264,000	2,257,000
Repayments of finance leases	(63,000)	(47,000)
Net cash provided by financing activities	10,327,000	2,210,000
Net increase (decrease) in cash and cash equivalents	7,123,000	(3,770,000)
Cash and cash equivalents-beginning of period	1,972,000	5,742,000
Cash and cash equivalents-end of period	9,095,000	1,972,000
SUPPLEMENTAL CASH FLOW DISCLOSURES
Interest paid	(6,000)	(6,000)
Income taxes paid	0	0
Non cash investing and financing activities:
Right-of-use assets and operating lease obligations recognized during the year		484,000
Debt issuance costs originated from issuance of warrant in connection with credit facility		219,000
Equipment acquired from finance leases	$ 20,000	61,000
Accounting Standards Update 2016-02 [Member]
Non cash investing and financing activities:
Right-of-use assets and operating lease obligations recognized upon adoption of ASU 2016-02		$ 568,000

ORGANIZATION AND DESCRIPTION OF

ORGANIZATION AND DESCRIPTION OF BUSINESS	12 Months Ended
	Dec. 31, 2020
ORGANIZATION AND DESCRIPTION OF BUSINESS
ORGANIZATION AND DESCRIPTION OF BUSINESS	NOTE 1 — ORGANIZATION AND DESCRIPTION OF BUSINESS AudioEye, Inc. (“we”, “us”, “our”, “AudioEye” or the “Company”) operates in one segment as a provider of patented, Internet content publication and distribution software and related services that enables conversion of digital content into accessible formats and allows for real time distribution to end users on any Internet connected device. The Company’s focus is to create more comprehensive access to Internet, print, broadcast and other media to all people regardless of their network connection, device, location, or disabilities. Our common stock is listed on The Nasdaq Capital Market under the symbol “AEYE” since September 4, 2018. Prior to September 4, 2018, our common stock was listed on the OTCQB and the OTC Bulletin Board since April 15, 2013 under the same symbol.

CAPITAL RAISE AND LIQUIDITY

CAPITAL RAISE AND LIQUIDITY	12 Months Ended
	Dec. 31, 2020
CAPITAL RAISE AND LIQUIDITY
CAPITAL RAISE AND LIQUIDITY	NOTE 2 — CAPITAL RAISE AND LIQUIDITY In the third quarter of 2020, we completed a public offering of common stock, whereby we issued 473,239 shares of our common stock at $17.75 per share, and raised a total of $7,824,000, net of underwriting discounts and commissions and other costs associated with the offering. As of December 31, 2020, cash and working capital totaled $9,095,000 and $5,616,000, respectively. For the year ended December 31, 2020, cash used in operating activities totaled $1,906,000. We have incurred net losses since inception. Our independent registered public accounting firm expressed in its report on our financial statements for the years ended December 31, 2019 and 2018 that there was substantial doubt about our ability to continue as a going concern. Following the capital raise during the third quarter of 2020, which contributed to the improvement in our cash and working capital positions as of December 31, 2020, we believe that the substantial doubt about our ability to continue as a going concern has been alleviated and that we have sufficient liquidity to continue as a going concern through the next twelve months after the date that the financial statements are issued. Refer to Note 12 – Subsequent Events for information regarding additional capital raised from a common stock offering after December 31, 2020.

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2020
SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 3 — SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation This summary of significant accounting policies is presented to assist in understanding the Company’s financial statements. These accounting policies conform to accounting principles generally accepted in the United States of America (“U.S. GAAP”), and have been consistently applied in the preparation of the financial statements. The Company has a fiscal year ending on December 31. Certain prior period amounts have been reclassified to conform to current period classification. All amounts in the financial statements, notes and tables have been rounded to the nearest thousand dollars, except share and per share amounts, unless otherwise indicated. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses, and the related disclosures at the date of the financial statements and during the reporting period. On an ongoing basis, management evaluates its estimates and judgments, including those related to stock-based compensation, capitalization of software development costs, allowance for doubtful accounts, and impairment of long-lived assets and goodwill. Actual results may differ from these estimates. Revenue Recognition We derive our revenue primarily from the sale of internally-developed software by a software-as-a-service (“SaaS”) delivery model, as well as from professional services, through our direct sales force or through third-party resellers. Our SaaS fees include support and maintenance. We recognize revenue in accordance with Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers (“ASC 606”). The core principle of ASC 606 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. We determine revenue recognition through the following five steps: · Identify the contract with the customer; · Identify the performance obligations in the contract; · Determine the transaction price; · Allocate the transaction price to the performance obligations in the contract; and · Recognize revenue when, or as, the performance obligations are satisfied. Performance obligations are the unit of accounting for revenue recognition and generally represent the distinct goods or services that are promised to the customer. If we determine that we have not satisfied a performance obligation, we will defer recognition of the revenue until the performance obligation is deemed to be satisfied. SaaS agreements are generally non-cancelable, although clients typically have the right to terminate their contracts for cause if we fail to perform material obligations. We may execute more than one contract with a single customer. We evaluate whether the agreements were negotiated as a package with a single objective, whether the amount of consideration to be paid in one agreement depends on the price and/or performance of another agreement, or whether the goods or services promised in the agreements represent a single performance obligation. The conclusions reached can impact the allocation of the transaction price to each performance obligation and the timing of revenue recognition related to those arrangements. Our SaaS (also referred to as “subscription”) revenue is comprised of fixed subscription fees from customer accounts on our platform. SaaS revenue is recognized on a ratable basis over the contractual subscription term of the arrangement beginning on the date that our service is made available to the customer. Certain SaaS fees are invoiced in advance on an annual, semi-annual, or quarterly basis. Any funds received for services not provided yet are held in deferred revenue and are recorded as revenue when the related performance obligations have been satisfied. Non-subscription revenue consists of PDF remediation and Mobile App report services and is recognized upon delivery. Consideration payable under these arrangements is based on usage. The following table presents our revenues disaggregated by sales channel: Year ended December 31, (in thousands) 2020 2019 Enterprise $ 10,735 $ 7,252 Partner and Marketplace 9,740 3,513 Total revenues $ 20,475 $ 10,765 The Company records accounts receivable for amounts invoiced to customers for which the Company has an unconditional right to consideration as provided under the contractual arrangement. Unbilled receivables include amounts related to the Company’s contractual right to consideration for completed performance obligations not yet invoiced. Deferred revenue includes payments received in advance of performance under the contract. Our unbilled receivables and deferred revenue are reported on an individual contract basis at the end of each reporting period. Unbilled receivables are classified as current or noncurrent based on the timing of when we expect to bill the customer. Deferred revenue is classified as current or noncurrent based on the timing of when we expect to recognize revenue. The table below summarizes our deferred revenue as of December 31, 2020 and 2019: As of December 31, (in thousands) 2020 2019 Deferred revenue - current $ 6,328 $ 5,372 Deferred revenue - noncurrent 83 153 Total deferred revenue $ 6,411 $ 5,525 In the year ended December 31, 2020 we recognized $5,269,000, or 95%, in revenue from deferred revenue outstanding as of December 31, 2019. We had one major customer (including the customer’s affiliates reflecting multiple contracts and a partnership with the Company) which accounted for approximately 16.7% of our revenue in the year ended December 31, 2020 and one major customer which generated approximately 10% of our revenue in the fiscal year ended December 31, 2019. Three customers with long standing relationships with the Company represented 25%, 13% and 13%, respectively, of total accounts receivable as of December 31, 2020. At December 31, 2019, one customer represented 40% of the outstanding accounts receivable. Deferred Costs (Contract acquisition costs) Our sales commission plans may provide for multiple commission payments, including an initial payment in the period a customer contract is obtained , or the first invoice is paid, and deferred payments over the life of the contract as future payments are collected from the customers. We capitalize initial and renewal sales commission payments in the period the commission is earned, which generally occurs when a customer contract is obtained or when the customer is billed, and amortize deferred commission costs on a straight-line basis over the expected period of benefit, which we have deemed to be the contract term, except when the commission payment is expected to provide economic benefit for a period longer than the contract term, such as for new customer or incremental sales where renewals are expected, and renewal commissions are not commensurate with initial commissions. As a practical expedient, we expense sales commissions as incurred when the amortization period of related deferred commission costs would have been one year or less. The table below summarizes the deferred commission costs as of December 31, 2020 and 2019: As of December 31, (in thousands) 2020 2019 Deferred costs – current $ 152 $ 183 Deferred costs - noncurrent 77 145 Total deferred costs $ 229 $ 328 Amortization expense associated with sales commissions was included in selling and marketing expenses on the statements of operations and totaled $250,000 and $240,000 for the year ended December 31, 2020 and 2019, respectively. There were no impairment losses for these capitalized costs for the years ended December 31, 2020 and 2019. Cost of Revenue Cost of revenue consists primarily of employee-related costs, including payroll, benefits and stock-based compensation expense for our technology operations and customer experience teams, fees paid to our managed hosting providers and other third-party service providers, amortization of capitalized software development costs and acquired technology, and allocated overhead costs. Cash and Cash Equivalents The Company considers cash in savings accounts to be cash equivalents. The Company considers any short-term, highly liquid investments with maturities of three months or less as cash and cash equivalents. Allowance for Doubtful Accounts The Company adjusts accounts receivable down to net realizable value with its allowance methodology. In determining the allowance for doubtful accounts for estimated losses, aged receivables are analyzed periodically by management. Each identified receivable is reviewed based upon historical collection experience, financial condition of the client and the status of any open or unresolved issues with the client preventing the payment thereof. Corrective action, if necessary, is taken by the Company to resolve open issues related to unpaid receivables. The allowance for doubtful accounts was $79,000 and $63,000 at December 31, 2020 and 2019, respectively. The Company believes that its reserve is adequate, however results may differ in future periods. For the years ended December 31, 2020 and 2019, bad debt expense totaled $128,000 and $13,000, respectively. Property and Equipment Property and equipment includes office and computer equipment, as well as furniture and fixtures. Property and equipment are carried at the cost of acquisition, and depreciated using the straight-line method over their estimated useful lives, which typically is 3 years. Costs associated with repairs and maintenance are expensed as incurred. Costs associated with improvements which extend the life, increase the capacity or improve the efficiency of the Company’s property and equipment are capitalized and depreciated over the remaining life of the related asset. Any gain or losses on disposition of property and equipment is included in the results of operations in the year of disposal. Total property and equipment acquired by cash and through finance leases totaled zero and $20,000, respectively, in the year ended December 31, 2020, and $56,000 and $61,000, respectively, in the year ended December 31, 2019. Depreciation expense was $86,000 and $69,000 for the years ended December 31, 2020 and 2019, respectively. Capitalized Software Development Costs In accordance with ASC 350-40, the Company capitalizes certain computer software and software development costs incurred in connection with developing or obtaining computer software for internal use when both the preliminary project stage is completed, and it is probable that the software will be used as intended. Capitalized software costs include (i) external direct costs of materials and services utilized in developing or obtaining computer software, and (ii) compensation and related benefits for employees who are directly associated with the software project. Capitalized software costs are included in intangible assets on our balance sheet and amortized on a straight-line basis when placed into service over the estimated useful lives of the software, which is typically three years. Amortization expense is included in cost of revenue on the statements of operations and totaled $449,000 and $279,000 for the years ended December 31, 2020 and 2019, respectively. The Company reviews the carrying value for impairment whenever facts and circumstances exist that would suggest that assets might be impaired or that the useful lives should be modified. Refer to Note 4 – Intangible Assets for additional information regarding our Capitalized Software Development Costs. Patents We capitalize patent application costs, including registration, documentation, and other legal fees associated with the application, which are incurred through the months the patent application is filed. Costs associated with provisional application filings are expensed as incurred. Costs incurred to renew or extend the term of recognized intangible assets, including patent annuities and fees, and costs incurred in prosecuting alleged infringements of our patents are expensed as incurred. Patents are included in intangible assets on our balance sheet. We amortize capitalized patent costs on a straight-line basis over their estimated useful lives, which generally ranges from 5 to 10 years, beginning with the date the patents are issued. We evaluate the capitalized costs for impairment and write off the carrying value of abandoned patents or patent applications. We also write off capitalized costs associated to patents not granted. Refer to Note 4 – Intangible Assets for additional information regarding our patents. Goodwill, Intangible Assets and Long-Lived Assets Goodwill is tested for impairment at least annually, and more frequently upon the occurrence of certain events that may indicate that the carrying value of goodwill may not be recoverable. Events or circumstances that could trigger an impairment test include, but are not limited to, a significant adverse change in the business climate or in legal factors, an adverse action or assessment by a regulator, a loss of key personnel, significant changes in the strategy for our overall business, significant negative industry or economic trends, significant underperformance relative to operating performance indicators, a significant decline in market capitalization and significant changes in competition. We complete our annual impairment test during the fourth quarter of each year, at the reporting unit level, which is at the company level as a whole, since we operate in one single reporting segment. Intangible assets with a finite life are amortized over their estimated useful lives. We evaluate the need for an impairment charge relating to long-lived assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. We consider the following to be some examples of indicators that may trigger an impairment review: (i) actual undiscounted cash flows significantly below historical or projected future undiscounted cash flows for the associated assets; (ii) significant changes in the manner or use of the assets or in our overall strategy with respect to the manner or use of the assets or changes in our overall business strategy; (iii) significant negative industry or economic trends; (iv) increased competitive pressures; and (v) a significant decline in our stock price for a sustained period of time. Once we determine that a potential impairment indicator exists, we perform the test for recoverability by comparing the estimated future undiscounted cash flows associated with the intangible assets with the intangible asset’s carrying amount. Where the carrying value of the intangible asset exceeds the future undiscounted cash flows associated with the intangible assets, it is determined that the value of those intangible assets cannot be recovered. For an intangible asset failing the recoverability test, an impairment charge is recorded for the difference between the carrying value and the estimated fair value. No impairment losses were incurred during the years ended December 31, 2020 and 2019. Fair Value of Financial Instruments Fair value is an estimate of the exit price, representing the amount that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants (i.e., the exit price at the measurement date). Fair value measurements are not adjusted for transaction cost. Fair value measurement under U.S. GAAP provides for use of a fair value hierarchy that prioritizes inputs to valuation techniques used to measure fair value into three levels: Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities. Level 2: Inputs other than quoted market prices that are observable, either directly or indirectly, and reasonably available. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability and are developed based on market data obtained from sources independent of the Company. Level 3: Unobservable inputs reflect the assumptions that the Company develops based on available information about what market participants would use in valuing the asset or liability. An asset or liability’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Availability of observable inputs can vary and is affected by a variety of factors. The Company uses judgment in determining the fair value of assets and liabilities and Level 3 assets and liabilities involve greater judgment than Level 1 and Level 2 assets or liabilities. The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses approximate fair value based on the short-term maturity of these instruments. Cash and cash equivalents are classified as Level 1. Long-term debt is classified as Level 2. The Company had no assets measured at fair value on a recurring basis as of December 31, 2020 and 2019. The table below provides information on our liabilities that are measured at fair value on a recurring basis: Fair Value (in thousands) Fair Value Hierarchy Warrant liability (1), December 31, 2020 $ — Level 3 Warrant liability (1), December 31, 2019 $ 120 Level 3 (1) In the third quarter of 2020, the warrant liability was extinguished upon full exercise of the warrants, which were issued in connection with our credit facility (see Note 6 – Debt for additional information on our credit facility and related warrant liability). The fair value of the warrant liability was determined using the Black-Scholes pricing model. For the years ended December 31, 2020 and 2019, gains on fair value adjustments totaling $120,000 and $99,000, respectively, were included in the statements of operations within change in fair value of warrant liability. Stock-Based Compensation The Company periodically issues options, warrants and restricted stock units (“RSUs”) as compensation for services received. The fair value of the award is measured on the grant date. The fair value amount is then recognized as expense over the requisite vesting period during which services are required to be provided in exchange for the award. Stock-based compensation expense is recorded by the Company in the same expense classifications in the statements of operations, as if such amounts were paid in cash. The fair value of options and warrants awards is measured on the grant date using a Black-Scholes option pricing model, which includes assumptions that are subjective and are generally derived from external data (such as risk-free rate of interest) and historical data (such as volatility factor, expected term, and forfeiture rates). Future grants of equity awards accounted for as stock-based compensation could have a material impact on reported expenses depending upon the number, value, and vesting period of future awards. We estimate the fair value of restricted stock unit awards with time- or performance-based vesting using the value of our common stock on the date of grant. We estimate the fair value of market-based restricted stock unit awards using a Monte Carlo simulation model on the date of grant. We expense the compensation cost associated with time-based options, warrants and RSUs as the restriction period lapses, which is typically a one- to three-year service period with the Company. Compensation expense related to performance-based options and RSUs is recognized on a straight-line basis over the requisite service period, provided that it is probable that performance conditions will be achieved, with probability assessed on a quarterly basis and any changes in expectations recognized as an adjustment to earnings in the period of the change. Compensation cost is not recognized for service- and performance-based awards that do not vest because service or performance conditions are not satisfied and any previously recognized compensation cost is reversed. Compensation costs related to awards with market conditions are recognized on a straight-line basis over the requisite service period regardless of whether the market condition is satisfied, and is not reversed provided that the requisite service period derived from the Monte-Carlo simulation has been completed. If vesting occurs prior to the end of the requisite service period, expense is accelerated and fully recognized through the vesting date. Income Taxes We use the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. These assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to reverse. The Company has net operating loss carryforwards available to reduce future taxable income. Future tax benefits for these net operating loss carryforwards are recognized to the extent that realization of these benefits is considered more likely than not. To the extent that the Company will not realize a future tax benefit, a valuation allowance is established. Earnings (Loss) Per Share (“EPS”) Basic EPS is calculated by dividing net income (loss) available to common stockholders by the weighted average number of shares of the Company’s common stock outstanding during the period. Diluted EPS is calculated based on the net income (loss) available to common stockholders and the weighted average number of shares of common stock outstanding during the period, adjusted for the effects of all potential dilutive common stock issuances related to options, warrants, restricted stock units and convertible preferred stock. The dilutive effect of our share-based awards and warrants is computed using the treasury stock method, which assumes all share-based awards and warrants are exercised and the hypothetical proceeds from exercise are used to purchase common stock at the average market price during the period. The incremental shares (i.e., the difference between shares assumed to be issued versus purchased), to the extent they would have been dilutive, are included in the denominator of the diluted EPS calculation. The dilutive effect of our convertible preferred stock is computed using the if-converted method, which assumes conversion at the beginning of the year. However, when a net loss exists, no potential common stock equivalents are included in the computation of the diluted per-share amount because the computation would result in an anti-dilutive per-share amount. Potentially dilutive securities outstanding as of December 31, 2020 and 2019, which were excluded from the computation of basic and diluted net loss per share for the years then ended, are as follows: December 31, (in thousands) 2020 2019 Preferred stock 263 295 Options 517 965 Warrants 81 425 Restricted stock units 958 429 Total 1,819 2,114 Loss Contingencies We are subject to the possibility of various loss contingencies arising in the normal course of business. We consider the likelihood of the loss or impairment of an asset or the incurrence of a liability as well as our ability to reasonably estimate the amount of loss in determining loss contingencies. An estimated loss contingency is accrued when it is probable that a liability has been incurred or an asset has been impaired and the amount of loss can be reasonably estimated. We regularly evaluate current information available to us to determine whether to accrue for a loss contingency and adjust any previous accrual. Recent Accounting Pronouncements In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-15, “Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract.” This ASU clarifies the accounting treatment for implementation costs for cloud computing arrangements (hosting arrangements) that is a service contract. This guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within that fiscal year. We adopted this guidance effective January 1, 2020. The adoption of this guidance did not have a material impact our financial position, results of operations or disclosures. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement.” This ASU adds, modifies, and removes several disclosure requirements relative to the three levels of inputs used to measure fair value in accordance with Topic 820, “Fair Value Measurement.” This guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within that fiscal year. We adopted this guidance effective January 1, 2020. The adoption of this guidance did not have a material impact our financial position, results of operations or disclosures.

INTANGIBLE ASSETS

INTANGIBLE ASSETS	12 Months Ended
	Dec. 31, 2020
INTANGIBLE ASSETS
INTANGIBLE ASSETS	NOTE 4 — INTANGIBLE ASSETS Intangible assets as of December 31, 2020 and 2019 consisted of the following: December 31, (in thousands) 2020 2019 Finite-lived assets: Patents $ 3,779 $ 3,698 Capitalized software development costs 2,676 1,717 Accumulated amortization (4,328) (3,710) Finite-lived assets, net 2,127 1,705 Indefinite-lived assets: Domain name 10 10 Intangible assets, net $ 2,137 $ 1,715 As of December 31, 2020 and 2019, capitalized cost associated with pending patents totaled $141,000 and zero, respectively. For the years ended December 31, 2020 and 2019, software development costs capitalized totaled $1,157,000 and $307,000, respectively. Refer to Note 3 – Significant Accounting Policies for additional information regarding our intangible assets, including specific information on our patents and capitalized software development costs. The following table summarizes amortization expense associated with intangible assets for the fiscal years ended December 31, 2020 and 2019: Year ended December 31, (in thousands) 2020 2019 Patents $ 428 $ 375 Capitalized software development costs 449 279 Total amortization expense $ 877 $ 654 The weighted average remaining useful life of our finite-lived intangible assets (in years) as of December 31, 2020 are as follows: Weighted average remaining amortization period (in years) Patents 2.1 Capitalized software development costs 2.4 No loss on impairment of long-lived assets was recorded for the years ended December 31, 2020 and 2019.

LEASE LIABILITIES AND RIGHT OF

LEASE LIABILITIES AND RIGHT OF USE ASSETS	12 Months Ended
	Dec. 31, 2020
LEASE LIABILITIES AND RIGHT OF USE ASSETS
LEASE LIABILITIES AND RIGHT OF USE ASSETS	NOTE 5 — LEASE LIABILITIES AND RIGHT OF USE ASSETS We determine whether an arrangement is a lease at inception. Right-of-use assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. Finance Leases The Company has finance leases to purchase computer equipment. The amortization expense of the leased equipment is included in depreciation expense. As of December 31, 2020 and 2019, the Company’s outstanding finance lease obligations totaled $61,000 and $104,000, respectively. The effective interest rate of the finance leases is estimated at 6.0% based on the implicit rate in the lease agreements. The following summarizes the assets acquired under finance leases, included in property and equipment: As of December 31, (in thousands) 2020 2019 Computer equipment $ 177 $ 157 Less: accumulated depreciation (116) (60) Assets acquired under finance leases, net $ 61 $ 97 Operating Leases Operating lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the expected lease term. Right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Since our lease arrangements do not provide an implicit rate, we use our estimated incremental borrowing rate for the expected remaining lease term at commencement date in determining the present value of future lease payments. Operating lease expense is recognized on a straight-line basis over the lease term. The Company has operating leases for office space in Tucson, Arizona and Marietta, Georgia. The lease for the principal office located in Tucson consists of approximately 5,200 square feet and ends in October 2022. The lease for the Marietta office, which consists of approximately 6,700 square feet, commenced in June 2019 and expires in August 2024. The company also leases office space in Scottsdale, Arizona from a company controlled by our Executive Chairman, which continues on a month-to-month basis, therefore was not measured under ASC 842. In addition, the Company entered into membership agreements to occupy shared office space in New York and Portland, Oregon. The membership agreements do not qualify as a lease under ASC 842 as the owner has substantive substitution rights, therefore the Company expenses membership fees as they are incurred. See Note 9 – Commitments and Contingencies for further details on our shared office arrangements. The Company made operating lease payments in the amount of $255,000 and $231,000 during the years ended December 31, 2020 and 2019, respectively. The following summarizes the total lease liabilities and remaining future minimum lease payments at December 31, 2020 (in thousands): Finance Operating Year ending December 31, Leases Leases Total 2021 $ 50 $ 262 $ 312 2022 14 257 271 2023 1 118 119 2024 — 81 81 Total minimum lease payments 65 718 783 Less: present value discount (4) (62) (66) Total lease liabilities $ 61 $ 656 $ 717 Current portion of lease liabilities $ 49 $ 229 $ 278 Long term portion of lease liabilities $ 12 $ 427 $ 439 The following summarizes expenses associated with our finance and operating leases for the year ended December 31, 2020 (in thousands): Finance lease expenses: Depreciation expense $ 56 Interest on lease liabilities 6 Total Finance lease expense 62 Operating lease expense 292 Short-term lease and related expenses 155 Total lease expenses $ 509 The following table provides information about the remaining lease terms and discount rates applied as of December 31, 2020: Weighted average remaining lease term (years) Operating Leases 2.95 Finance Leases 1.44 Weighted average discount rate (%) Operating Leases 6.00 Finance Leases 6.00

DEBT

DEBT	12 Months Ended
	Dec. 31, 2020
DEBT
DEBT	NOTE 6 — DEBT Related party credit facility On August 14, 2019, the Company entered into a Loan Agreement (the “Loan Agreement”) with Sero Capital LLC (“Sero Capital”), a stockholder who owns more than 10% of the outstanding shares of common stock of the Company. The beneficial owner of Sero Capital is David Moradi, who became a director of the Company on November 8, 2019 and was appointed the Company’s Interim Chief Executive Officer and Chief Strategy Officer on August 13, 2020. The Loan Agreement provided the Company with an unsecured credit facility under which the Company could have borrowed up to the aggregate principal amount of $2,000,000. Any advances under the Loan Agreement would bear interest at a per annum rate of 10% (subject to increase in the event of a default). The term of the Loan Agreement extended through August 14, 2020 and provided for certain customary covenants, representations and events of default. No amounts were drawn under the credit facility through its expiration on August 14, 2020. In consideration of the Loan Agreement, the Company issued to Sero Capital common stock warrants to acquire up to a total of 146,667 shares of the Company’s common stock at an exercise price of $6.00 per share, which were classified as a liability instrument since the holder had the option to require the Company to repurchase the warrants when certain events occurred that were considered outside of the control of the Company. In the third quarter of 2020, the Company received $880,000 in cash in connection with Sero Capital’s full exercise of these warrants. The estimated fair value of the warrants held by Sero Capital was $219,000 at the date of issuance and was included in debt issuance costs on the balance sheets. Debt issuance cost was amortized as interest expense on a straight-line basis over the term of the associated credit facility. As of December 31, 2020 and 2019, the unamortized balance of debt issuance costs was zero and $137,000, respectively. Term loan On April 15, 2020, the Company entered into a loan agreement in the amount of $1,302,000 with Liberty Capital Bank (“Lender”) pursuant to the Paycheck Protection Program (“PPP Loan”) of the CARES Act, which is administered by the Small Business Administration (“SBA”). Pursuant to the terms of the PPP Loan, principal and interest payments are deferred until the date on which the SBA either remits to the Lender the amount of the PPP Loan that will be forgiven by the SBA or notifies the Lender that the PPP Loan or a portion thereof will not be forgiven. The loan has a maturity of two years and bears an interest rate of 1.0% per annum. The PPP Loan is not collateralized and is not personally guaranteed. No fees were charged in connection with the loan. All or a portion of the PPP Loan may be forgiven upon SBA’s approval of the Company’s pending forgiveness application. As of December 31, 2020 the outstanding principal balance of the PPP Loan totaled $1,302,000 and accrued interest thereon totaled $9,000. Outstanding principal balances on debt consisted of the following: (in thousands) December 31, 2020 Term Loan $ 1,302 Less: Short term portion (219) Long term portion of debt $ 1,083

SERIES A CONVERTIBLE PREFERRED

SERIES A CONVERTIBLE PREFERRED STOCK	12 Months Ended
	Dec. 31, 2020
Series A Preferred Stock
Class of Stock [Line Items]
SERIES A CONVERTIBLE PREFERRED STOCK	NOTE 7 — SERIES A CONVERTIBLE PREFERRED STOCK As of December 31, 2020 and 2019, the Company had 90,000 and 105,000 shares of Series A Convertible Preferred Stock (the “Preferred Stock”) outstanding, respectively. These shares of Preferred Stock were issued at $10 per share (the “stated value”) , accrue 5% in cumulative annual dividends, and are convertible into the Company’s common stock at a price of $4.385 per share. For the year ended December 31, 2020, preferred stockholders collectively earned, but were not paid, dividends totaling approximately $51,000, which were equivalent to 11,574 shares of common stock based on a conversion price of $4.385 per share. As of December 31, 2020 and 2019, cumulative and unpaid dividends were approximately $255,000 and $245,000, respectively, which is equivalent to 58,288 and 55,927 shares of common stock, respectively, based on a conversion price of $4.385 per share. On any matter presented to the stockholders of the Company for vote, holders of Preferred Stock are entitled to cast the number of votes equal to the number of shares of common stock into which their shares of Preferred Stock are convertible as of the record date to vote on such matter. As long as any shares of Preferred Stock are outstanding, the Company has certain restrictions on share repurchases and amendments to the Certificate of Incorporation in a manner that adversely affects any rights of the holders of Preferred Stock. In addition, the holders of Preferred Stock have a liquidation preference for purposes of which the Preferred Stock would be valued at $10 per share plus accrued cumulative annual dividends. At December 31, 2020 and 2019, the liquidation preference was valued at $1,155,000 and $1,295,000, respectively. In the event of any liquidity event, holders of Preferred Stock shall be entitled to be paid their liquidation preference out of the assets of the Company legally available before any sums shall be paid to holders of common stock. The Company is entitled to redeem any or all of the outstanding shares of Preferred Stock at a per share price equal to 125% of the stated value, plus accumulated dividends, payable in cash. As of December 31, 2020, the aggregate amount to redeem all outstanding shares of Preferred Stock was $1,380,000.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
	Dec. 31, 2020
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS	NOTE 8 — RELATED PARTY TRANSACTIONS As discussed in Note 6 – Debt, we entered into a Loan Agreement with Sero Capital, a stockholder who owns more than 10% of the outstanding shares of common stock of the Company. The beneficial owner of Sero Capital is David Moradi, who became a director of the Company on November 8, 2019 and was appointed the Company’s Interim Chief Executive Officer and Chief Strategy Officer on August 13, 2020. The Loan Agreement extended through August 14, 2020 and provided the Company with an unsecured credit facility under which we could have borrowed up to the aggregate principal amount of $2,000,000. No amounts were drawn under the credit facility though its expiration on August 14, 2020. In consideration for the Loan Agreement, we issued to Sero Capital common stock warrants to acquire up to a total of 146,667 shares of the Company’s common stock at an exercise price of $6.00 per share. The warrants were fully exercised in August 2020 and the warrant liability was extinguished. See Note- 6 – Debt for additional detail on our warrant liability. As discussed in Note 5 – Lease Liabilities and Right of Use Assets, we lease office space from a company controlled by our Executive Chairman. For the year ended December 31, 2020, rent payments for this office space totaled $70,000.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2020
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	NOTE 9 — COMMITMENTS AND CONTINGENCIES Membership agreement to occupy shared office space In the second quarter of 2020, the Company entered into a membership agreement to occupy shared office space in Portland, Oregon. The membership agreement ends in August 2021 and provides for fees which are based on the number of contracted seats and the use of optional office services. As of December 31, 2020, minimum fees due under this shared office arrangement totaled $31,000. The Company also entered into a membership agreement to occupy shared office space in New York, NY through July 2021. As of December 31, 2020, minimum fees due under this shared office arrangement totaled $59,000. Litigation We may become involved in various routine disputes and allegations incidental to our business operations. While it is not possible to determine the ultimate disposition of these matters, management believes that the resolution of any such matters, should they arise, is not likely to have a material adverse effect on our financial position or results of operations.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	12 Months Ended
	Dec. 31, 2020
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION	NOTE 10 — STOCK-BASED COMPENSATION On December 9, 2020, the 2020 Equity Incentive Plan (the “2020 Plan”) was approved, replacing the 2019 Equity Incentive Plan. The 2020 Plan provides for the issuance of up to 1,000,000 shares of the Company’s common stock to the Company’s employees, non-employee directors, consultants and advisors. Awards under the 2020 Plan can be granted in the form of stock options, stock appreciation rights, restricted stock, stock units, other stock-based awards and cash incentive awards. Outstanding awards issued under previous equity incentive plans will continue to be governed by their respective terms until exercised, expired or otherwise terminated or canceled, but no further equity awards will be made under those plans. The following table summarizes the stock-based compensation expense recorded for the years ended December 31, 2020 and 2019: Year ended December 31, (in thousands) 2020 2019 Stock Options $ 300 $ 322 Restricted Stock Units 3,789 894 Unrestricted Shares of Common Stock 49 — Total $ 4,138 $ 1,216 As of December 31, 2020, the outstanding unrecognized stock-based compensation expense related to options and restricted stock units (“RSUs”) was $1,373,000 and $6,413,000, respectively, which may be recognized through August 2025, subject to achievement of service, performance, and market conditions. As of December 31, 2020, there was no remaining unamortized stock-based compensation expense related to warrants. Stock Options Options granted under our equity incentive plans generally have terms of five years, and typically vest and become fully exercisable ratably over three years of continuous service to the Company from the date of grant. The following table summarizes the stock option activity for the years ended December 31, 2020 and 2019: Weighted Intrinsic Weighted Average Value Number of Average Remaining of Options Exercise Price Term Exercisable Options Outstanding at December 31, 2018 997,989 $ 4.67 2.14 925,545 $ 4,705,000 Granted 189,599 6.54 9.25 Exercised (37,528) 1.75 Forfeited/Expired (185,017) 11.83 Outstanding at December 31, 2019 965,043 $ 3.70 3.01 759,631 $ 1,666,000 Granted 220,267 12.31 5.00 Exercised (433,180) 2.07 Forfeited/Expired (235,219) 7.00 Outstanding at December 31, 2020 516,911 $ 7.24 2.70 294,894 $ 9,610,000 Exercisable as of December 31, 2020 294,894 $ 3.95 1.02 $ 6,452,000 The 2020 and 2019 stock-based compensation was estimated at the date of grant using a Black-Scholes option pricing model with the following weighted average assumptions for each fiscal year: 2020 2019 Expected life 3.16 years 4.70 years Risk-free interest rate 0.19 % 1.87 % Weighted average volatility factor 107.28 % 148.41 % Dividend yield — — Restricted Stock Units We issue RSUs to employees, officers, directors, and consultants of the Company. The restrictions on time-based RSUs generally lapse over a one- to three-year term of continuous service from the date of grant. The following table summarizes the RSU activity for years ended December 31, 2020 and 2019: Restricted stock units outstanding as of December 31, 2018 222,514 Granted 206,405 Forfeited/Canceled — Restricted stock units outstanding as of December 31, 2019 428,919 Granted 800,695 Settled (116,656) Forfeited/Canceled (154,580) Total restricted stock units outstanding at December 31, 2020 958,378 Vested restricted stock units at December 31, 2020 285,108 Unvested restricted stock units as of December 31, 2020 673,270 In the third quarter of 2020, we granted 260,000 RSUs with performance-based and market-based conditions to our Interim Chief Executive Officer. The performance condition for 105,000 of such RSUs is based on the achievement of Monthly Recurring Revenue (“MRR”) targets. In 2020, we recorded $314,000 in stock-based compensation expense associated with 55,000 RSUs, the performance target for which achievement during the requisite period was deemed probable. The Company will continue to reassess the probability of achieving the performance conditions in future periods and record the appropriate expense if necessary. The market condition for the remaining 155,000 RSUs in the award is based on the Company’s stock price targets. The Company used a Monte Carlo simulation to determine the grant-date fair value for the market-based RSUs. The weighted-average assumptions used in the Monte-Carlo simulation were as follows: 5- year historical volatility of 136.52%, 5-year risk-free rate of 0.26%, and a performance period of 5 years. The Company recorded $1,506,000 in stock-based compensation expense related to these market-based RSUs in 2020. Warrants The following table summarizes the warrant activity for the years ended December 31, 2020 and 2019: Weighted Intrinsic Weighted Average Value Number of Average Remaining of Warrants Exercise Price Term Warrants Outstanding at December 31, 2018 1,781,715 $ 4.2 2.23 $ 8,930,000 Granted 146,667 6.00 0.62 Exercised (1,279,550) 1.85 Forfeited/Expired (224,124) 5.33 Outstanding at December 31, 2019 424,708 5.31 0.82 189,000 Granted — — Exercised (321,467) 4.77 Forfeited/Expired (22,188) 9.59 Outstanding at December 31, 2020 81,053 $ 6.25 0.94 $ 1,587,000 In August 2019, the Company negotiated with holders of certain warrants to purchase the Company’s common stock with respect to a transaction in which the Company and the holders agreed to amend certain warrant agreements to provide that, from the date of amendment through August 16, 2019, the exercise price was reduced from $2.50 to $1.63 per share for warrants to purchase an aggregate of 1,194,990 shares and from $6.25 to $4.07 per share for warrants to purchase an aggregate of 85,719 shares, provided that any exercise during such period was in full and the exercise price was paid in cash. In August 2019, an aggregate of 1,212,136 warrants to purchase the Company’s common stock were exercised for net proceeds of $2,115,000. In the third quarter of 2020, the Company received $880,000 in cash in connection with the exercise of 146,667 stock warrants by a related party. Refer to Note 6 – Debt and Note 8 – Related Party Transactions for additional information on these warrants.

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2020
INCOME TAXES
INCOME TAXES	NOTE 11 — INCOME TAXES For the years ended December 31, 2020 and 2019, federal and state income tax expense totaled zero. The Company has net operating loss carryforwards available to reduce future taxable income. As of December 31, 2020, net operating loss carry forwards totaled $42,636,000 and will expire at various dates through 2040. Future tax benefits for these net operating loss carryforwards are recognized to the extent that realization of these benefits is considered more likely than not. To the extent that the Company will not realize a future tax benefit, a valuation allowance is established. At this time, the Company is unable to determine if it will be able to benefit from its deferred tax asset. There are limitations on the utilization of net operating loss carry forwards, including a requirement that losses be offset against future taxable income, if any. In addition, there are limitations imposed by certain transactions, which are deemed to be ownership changes. Accordingly, our net deferred tax asset was zero as of December 31, 2020 and 2019 as the Company established a full valuation allowance of $ 13,304,000 and $7,758,000, respectively. Significant components of our deferred tax assets and liabilities as of December 31, 2020 and 2019 consist of the following: December 31, (in thousands) 2020 2019 Deferred tax assets: Intangible assets $ 269 $ — Bad debt expense 21 — Accrued compensation expense 83 — Deferred revenue and costs 2 — Stock-based compensation 1,494 — Operating lease liability 193 — State NOL carryforwards 2,516 1,380 Federal NOL carryforwards 8,954 6,378 Total Deferred Tax Assets 13,532 7,758 Valuation allowance (13,304) (7,758) Net deferred tax assets 228 — Deferred tax liabilities: Property and equipment (62) — Right of use assets (166) — Total deferred tax liabilities (228) — Net deferred tax asset (liability) $ — $ — The Company is subject to U.S. federal income tax as well as income taxes in multiple state and local jurisdictions. The Company has concluded all U.S. federal tax matters for years through December 31, 2016. All material state and local income tax matters have been concluded for years through December 31, 2015. The Company is no longer subject to IRS examination the tax years ended on or before December 31, 2016; however, carryforward losses that were generated through the tax year ended December 31, 2016 may still be adjusted by the IRS if they are used in a future period. The Company had no reserve for uncertain tax positions as of December 31, 2020 and 2019.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	12 Months Ended
	Dec. 31, 2020
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	NOTE 12 — SUBSEQUENT EVENTS We have evaluated subsequent events occurring after December 31, 2020 and based on our evaluation we did not identify any events that would have required recognition or disclosure in these financial statements, except for the following. On February 11, 2021, we entered into an At Market Issuance Sales Agreement (the “Sales Agreement”) with B. Riley Securities, Inc. (“Agent”) under which the Company may offer and sell, from time to time at its sole discretion, shares of its common stock to or through the Agent as its sales agent, having an aggregate offering price of up to $30,000,000. As of March 8, 2021, we had sold a total of 378,108 shares of common stock under this Sales Agreement for total proceeds of approximately $14.1 million, net of estimated transaction costs . In the first quarter of 2021, our Interim Chief Executive Officer vested in 55,000 RSUs with market conditions based on the Company’s stock price targets. In connection with the settlement of these RSUs, the Company paid $373,000 in taxes on behalf of our Interim Chief Executive Officer in exchange for the surrender of 15,651 shares of the Company’s common stock.

SIGNIFICANT ACCOUNTING POLICI_2

SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2020
SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation	Basis of Presentation This summary of significant accounting policies is presented to assist in understanding the Company’s financial statements. These accounting policies conform to accounting principles generally accepted in the United States of America (“U.S. GAAP”), and have been consistently applied in the preparation of the financial statements. The Company has a fiscal year ending on December 31. Certain prior period amounts have been reclassified to conform to current period classification. All amounts in the financial statements, notes and tables have been rounded to the nearest thousand dollars, except share and per share amounts, unless otherwise indicated.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses, and the related disclosures at the date of the financial statements and during the reporting period. On an ongoing basis, management evaluates its estimates and judgments, including those related to stock-based compensation, capitalization of software development costs, allowance for doubtful accounts, and impairment of long-lived assets and goodwill. Actual results may differ from these estimates.
Revenue Recognition	Revenue Recognition We derive our revenue primarily from the sale of internally-developed software by a software-as-a-service (“SaaS”) delivery model, as well as from professional services, through our direct sales force or through third-party resellers. Our SaaS fees include support and maintenance. We recognize revenue in accordance with Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers (“ASC 606”). The core principle of ASC 606 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. We determine revenue recognition through the following five steps: · Identify the contract with the customer; · Identify the performance obligations in the contract; · Determine the transaction price; · Allocate the transaction price to the performance obligations in the contract; and · Recognize revenue when, or as, the performance obligations are satisfied. Performance obligations are the unit of accounting for revenue recognition and generally represent the distinct goods or services that are promised to the customer. If we determine that we have not satisfied a performance obligation, we will defer recognition of the revenue until the performance obligation is deemed to be satisfied. SaaS agreements are generally non-cancelable, although clients typically have the right to terminate their contracts for cause if we fail to perform material obligations. We may execute more than one contract with a single customer. We evaluate whether the agreements were negotiated as a package with a single objective, whether the amount of consideration to be paid in one agreement depends on the price and/or performance of another agreement, or whether the goods or services promised in the agreements represent a single performance obligation. The conclusions reached can impact the allocation of the transaction price to each performance obligation and the timing of revenue recognition related to those arrangements. Our SaaS (also referred to as “subscription”) revenue is comprised of fixed subscription fees from customer accounts on our platform. SaaS revenue is recognized on a ratable basis over the contractual subscription term of the arrangement beginning on the date that our service is made available to the customer. Certain SaaS fees are invoiced in advance on an annual, semi-annual, or quarterly basis. Any funds received for services not provided yet are held in deferred revenue and are recorded as revenue when the related performance obligations have been satisfied. Non-subscription revenue consists of PDF remediation and Mobile App report services and is recognized upon delivery. Consideration payable under these arrangements is based on usage. The following table presents our revenues disaggregated by sales channel: Year ended December 31, (in thousands) 2020 2019 Enterprise $ 10,735 $ 7,252 Partner and Marketplace 9,740 3,513 Total revenues $ 20,475 $ 10,765 The Company records accounts receivable for amounts invoiced to customers for which the Company has an unconditional right to consideration as provided under the contractual arrangement. Unbilled receivables include amounts related to the Company’s contractual right to consideration for completed performance obligations not yet invoiced. Deferred revenue includes payments received in advance of performance under the contract. Our unbilled receivables and deferred revenue are reported on an individual contract basis at the end of each reporting period. Unbilled receivables are classified as current or noncurrent based on the timing of when we expect to bill the customer. Deferred revenue is classified as current or noncurrent based on the timing of when we expect to recognize revenue. The table below summarizes our deferred revenue as of December 31, 2020 and 2019: As of December 31, (in thousands) 2020 2019 Deferred revenue - current $ 6,328 $ 5,372 Deferred revenue - noncurrent 83 153 Total deferred revenue $ 6,411 $ 5,525 In the year ended December 31, 2020 we recognized $5,269,000, or 95%, in revenue from deferred revenue outstanding as of December 31, 2019. We had one major customer (including the customer’s affiliates reflecting multiple contracts and a partnership with the Company) which accounted for approximately 16.7% of our revenue in the year ended December 31, 2020 and one major customer which generated approximately 10% of our revenue in the fiscal year ended December 31, 2019. Three customers with long standing relationships with the Company represented 25%, 13% and 13%, respectively, of total accounts receivable as of December 31, 2020. At December 31, 2019, one customer represented 40% of the outstanding accounts receivable.
Deferred Costs (Contract acquisition costs)	Deferred Costs (Contract acquisition costs) Our sales commission plans may provide for multiple commission payments, including an initial payment in the period a customer contract is obtained , or the first invoice is paid, and deferred payments over the life of the contract as future payments are collected from the customers. We capitalize initial and renewal sales commission payments in the period the commission is earned, which generally occurs when a customer contract is obtained or when the customer is billed, and amortize deferred commission costs on a straight-line basis over the expected period of benefit, which we have deemed to be the contract term, except when the commission payment is expected to provide economic benefit for a period longer than the contract term, such as for new customer or incremental sales where renewals are expected, and renewal commissions are not commensurate with initial commissions. As a practical expedient, we expense sales commissions as incurred when the amortization period of related deferred commission costs would have been one year or less. The table below summarizes the deferred commission costs as of December 31, 2020 and 2019: As of December 31, (in thousands) 2020 2019 Deferred costs – current $ 152 $ 183 Deferred costs - noncurrent 77 145 Total deferred costs $ 229 $ 328 Amortization expense associated with sales commissions was included in selling and marketing expenses on the statements of operations and totaled $250,000 and $240,000 for the year ended December 31, 2020 and 2019, respectively. There were no impairment losses for these capitalized costs for the years ended December 31, 2020 and 2019.
Cost Of Revenue	Cost of Revenue Cost of revenue consists primarily of employee-related costs, including payroll, benefits and stock-based compensation expense for our technology operations and customer experience teams, fees paid to our managed hosting providers and other third-party service providers, amortization of capitalized software development costs and acquired technology, and allocated overhead costs.
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers cash in savings accounts to be cash equivalents. The Company considers any short-term, highly liquid investments with maturities of three months or less as cash and cash equivalents.
Allowance for Doubtful Accounts	Allowance for Doubtful Accounts The Company adjusts accounts receivable down to net realizable value with its allowance methodology. In determining the allowance for doubtful accounts for estimated losses, aged receivables are analyzed periodically by management. Each identified receivable is reviewed based upon historical collection experience, financial condition of the client and the status of any open or unresolved issues with the client preventing the payment thereof. Corrective action, if necessary, is taken by the Company to resolve open issues related to unpaid receivables. The allowance for doubtful accounts was $79,000 and $63,000 at December 31, 2020 and 2019, respectively. The Company believes that its reserve is adequate, however results may differ in future periods. For the years ended December 31, 2020 and 2019, bad debt expense totaled $128,000 and $13,000, respectively.
Property and Equipment	Property and Equipment Property and equipment includes office and computer equipment, as well as furniture and fixtures. Property and equipment are carried at the cost of acquisition, and depreciated using the straight-line method over their estimated useful lives, which typically is 3 years. Costs associated with repairs and maintenance are expensed as incurred. Costs associated with improvements which extend the life, increase the capacity or improve the efficiency of the Company’s property and equipment are capitalized and depreciated over the remaining life of the related asset. Any gain or losses on disposition of property and equipment is included in the results of operations in the year of disposal. Total property and equipment acquired by cash and through finance leases totaled zero and $20,000, respectively, in the year ended December 31, 2020, and $56,000 and $61,000, respectively, in the year ended December 31, 2019. Depreciation expense was $86,000 and $69,000 for the years ended December 31, 2020 and 2019, respectively.
Capitalization Software Development Costs	Capitalized Software Development Costs In accordance with ASC 350-40, the Company capitalizes certain computer software and software development costs incurred in connection with developing or obtaining computer software for internal use when both the preliminary project stage is completed, and it is probable that the software will be used as intended. Capitalized software costs include (i) external direct costs of materials and services utilized in developing or obtaining computer software, and (ii) compensation and related benefits for employees who are directly associated with the software project. Capitalized software costs are included in intangible assets on our balance sheet and amortized on a straight-line basis when placed into service over the estimated useful lives of the software, which is typically three years. Amortization expense is included in cost of revenue on the statements of operations and totaled $449,000 and $279,000 for the years ended December 31, 2020 and 2019, respectively. The Company reviews the carrying value for impairment whenever facts and circumstances exist that would suggest that assets might be impaired or that the useful lives should be modified. Refer to Note 4 – Intangible Assets for additional information regarding our Capitalized Software Development Costs.
Patents	Patents We capitalize patent application costs, including registration, documentation, and other legal fees associated with the application, which are incurred through the months the patent application is filed. Costs associated with provisional application filings are expensed as incurred. Costs incurred to renew or extend the term of recognized intangible assets, including patent annuities and fees, and costs incurred in prosecuting alleged infringements of our patents are expensed as incurred. Patents are included in intangible assets on our balance sheet. We amortize capitalized patent costs on a straight-line basis over their estimated useful lives, which generally ranges from 5 to 10 years, beginning with the date the patents are issued. We evaluate the capitalized costs for impairment and write off the carrying value of abandoned patents or patent applications. We also write off capitalized costs associated to patents not granted. Refer to Note 4 – Intangible Assets for additional information regarding our patents.
Goodwill, Intangible Assets and Long-Lived Assets	Goodwill, Intangible Assets and Long-Lived Assets Goodwill is tested for impairment at least annually, and more frequently upon the occurrence of certain events that may indicate that the carrying value of goodwill may not be recoverable. Events or circumstances that could trigger an impairment test include, but are not limited to, a significant adverse change in the business climate or in legal factors, an adverse action or assessment by a regulator, a loss of key personnel, significant changes in the strategy for our overall business, significant negative industry or economic trends, significant underperformance relative to operating performance indicators, a significant decline in market capitalization and significant changes in competition. We complete our annual impairment test during the fourth quarter of each year, at the reporting unit level, which is at the company level as a whole, since we operate in one single reporting segment. Intangible assets with a finite life are amortized over their estimated useful lives. We evaluate the need for an impairment charge relating to long-lived assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. We consider the following to be some examples of indicators that may trigger an impairment review: (i) actual undiscounted cash flows significantly below historical or projected future undiscounted cash flows for the associated assets; (ii) significant changes in the manner or use of the assets or in our overall strategy with respect to the manner or use of the assets or changes in our overall business strategy; (iii) significant negative industry or economic trends; (iv) increased competitive pressures; and (v) a significant decline in our stock price for a sustained period of time. Once we determine that a potential impairment indicator exists, we perform the test for recoverability by comparing the estimated future undiscounted cash flows associated with the intangible assets with the intangible asset’s carrying amount. Where the carrying value of the intangible asset exceeds the future undiscounted cash flows associated with the intangible assets, it is determined that the value of those intangible assets cannot be recovered. For an intangible asset failing the recoverability test, an impairment charge is recorded for the difference between the carrying value and the estimated fair value. No impairment losses were incurred during the years ended December 31, 2020 and 2019
Fair Value of Financial Instruments	Fair Value of Financial Instruments Fair value is an estimate of the exit price, representing the amount that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants (i.e., the exit price at the measurement date). Fair value measurements are not adjusted for transaction cost. Fair value measurement under U.S. GAAP provides for use of a fair value hierarchy that prioritizes inputs to valuation techniques used to measure fair value into three levels: Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities. Level 2: Inputs other than quoted market prices that are observable, either directly or indirectly, and reasonably available. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability and are developed based on market data obtained from sources independent of the Company. Level 3: Unobservable inputs reflect the assumptions that the Company develops based on available information about what market participants would use in valuing the asset or liability. An asset or liability’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Availability of observable inputs can vary and is affected by a variety of factors. The Company uses judgment in determining the fair value of assets and liabilities and Level 3 assets and liabilities involve greater judgment than Level 1 and Level 2 assets or liabilities. The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses approximate fair value based on the short-term maturity of these instruments. Cash and cash equivalents are classified as Level 1. Long-term debt is classified as Level 2. The Company had no assets measured at fair value on a recurring basis as of December 31, 2020 and 2019. The table below provides information on our liabilities that are measured at fair value on a recurring basis: Fair Value (in thousands) Fair Value Hierarchy Warrant liability (1), December 31, 2020 $ — Level 3 Warrant liability (1), December 31, 2019 $ 120 Level 3 (1) In the third quarter of 2020, the warrant liability was extinguished upon full exercise of the warrants, which were issued in connection with our credit facility (see Note 6 – Debt for additional information on our credit facility and related warrant liability). The fair value of the warrant liability was determined using the Black-Scholes pricing model. For the years ended December 31, 2020 and 2019, gains on fair value adjustments totaling $120,000 and $99,000, respectively, were included in the statements of operations within change in fair value of warrant liability.
Stock-Based Compensation	Stock-Based Compensation The Company periodically issues options, warrants and restricted stock units (“RSUs”) as compensation for services received. The fair value of the award is measured on the grant date. The fair value amount is then recognized as expense over the requisite vesting period during which services are required to be provided in exchange for the award. Stock-based compensation expense is recorded by the Company in the same expense classifications in the statements of operations, as if such amounts were paid in cash. The fair value of options and warrants awards is measured on the grant date using a Black-Scholes option pricing model, which includes assumptions that are subjective and are generally derived from external data (such as risk-free rate of interest) and historical data (such as volatility factor, expected term, and forfeiture rates). Future grants of equity awards accounted for as stock-based compensation could have a material impact on reported expenses depending upon the number, value, and vesting period of future awards. We estimate the fair value of restricted stock unit awards with time- or performance-based vesting using the value of our common stock on the date of grant. We estimate the fair value of market-based restricted stock unit awards using a Monte Carlo simulation model on the date of grant. We expense the compensation cost associated with time-based options, warrants and RSUs as the restriction period lapses, which is typically a one- to three-year service period with the Company. Compensation expense related to performance-based options and RSUs is recognized on a straight-line basis over the requisite service period, provided that it is probable that performance conditions will be achieved, with probability assessed on a quarterly basis and any changes in expectations recognized as an adjustment to earnings in the period of the change. Compensation cost is not recognized for service- and performance-based awards that do not vest because service or performance conditions are not satisfied and any previously recognized compensation cost is reversed. Compensation costs related to awards with market conditions are recognized on a straight-line basis over the requisite service period regardless of whether the market condition is satisfied, and is not reversed provided that the requisite service period derived from the Monte-Carlo simulation has been completed. If vesting occurs prior to the end of the requisite service period, expense is accelerated and fully recognized through the vesting date.
Income Taxes	Income Taxes We use the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. These assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to reverse. The Company has net operating loss carryforwards available to reduce future taxable income. Future tax benefits for these net operating loss carryforwards are recognized to the extent that realization of these benefits is considered more likely than not. To the extent that the Company will not realize a future tax benefit, a valuation allowance is established.
Earnings (Loss) Per Share ("EPS")	Earnings (Loss) Per Share (“EPS”) Basic EPS is calculated by dividing net income (loss) available to common stockholders by the weighted average number of shares of the Company’s common stock outstanding during the period. Diluted EPS is calculated based on the net income (loss) available to common stockholders and the weighted average number of shares of common stock outstanding during the period, adjusted for the effects of all potential dilutive common stock issuances related to options, warrants, restricted stock units and convertible preferred stock. The dilutive effect of our share-based awards and warrants is computed using the treasury stock method, which assumes all share-based awards and warrants are exercised and the hypothetical proceeds from exercise are used to purchase common stock at the average market price during the period. The incremental shares (i.e., the difference between shares assumed to be issued versus purchased), to the extent they would have been dilutive, are included in the denominator of the diluted EPS calculation. The dilutive effect of our convertible preferred stock is computed using the if-converted method, which assumes conversion at the beginning of the year. However, when a net loss exists, no potential common stock equivalents are included in the computation of the diluted per-share amount because the computation would result in an anti-dilutive per-share amount. Potentially dilutive securities outstanding as of December 31, 2020 and 2019, which were excluded from the computation of basic and diluted net loss per share for the years then ended, are as follows: December 31, (in thousands) 2020 2019 Preferred stock 263 295 Options 517 965 Warrants 81 425 Restricted stock units 958 429 Total 1,819 2,114
Loss Contingencies	Loss Contingencies We are subject to the possibility of various loss contingencies arising in the normal course of business. We consider the likelihood of the loss or impairment of an asset or the incurrence of a liability as well as our ability to reasonably estimate the amount of loss in determining loss contingencies. An estimated loss contingency is accrued when it is probable that a liability has been incurred or an asset has been impaired and the amount of loss can be reasonably estimated. We regularly evaluate current information available to us to determine whether to accrue for a loss contingency and adjust any previous accrual.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-15, “Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract.” This ASU clarifies the accounting treatment for implementation costs for cloud computing arrangements (hosting arrangements) that is a service contract. This guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within that fiscal year. We adopted this guidance effective January 1, 2020. The adoption of this guidance did not have a material impact our financial position, results of operations or disclosures. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement.” This ASU adds, modifies, and removes several disclosure requirements relative to the three levels of inputs used to measure fair value in accordance with Topic 820, “Fair Value Measurement.” This guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within that fiscal year. We adopted this guidance effective January 1, 2020. The adoption of this guidance did not have a material impact our financial position, results of operations or disclosures.

SIGNIFICANT ACCOUNTING POLICI_3

SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2020
SIGNIFICANT ACCOUNTING POLICIES
Schedule of disaggregation of revenue	Year ended December 31, (in thousands) 2020 2019 Enterprise $ 10,735 $ 7,252 Partner and Marketplace 9,740 3,513 Total revenues $ 20,475 $ 10,765
Schedule of deferred revenue	The table below summarizes our deferred revenue as of December 31, 2020 and 2019: As of December 31, (in thousands) 2020 2019 Deferred revenue - current $ 6,328 $ 5,372 Deferred revenue - noncurrent 83 153 Total deferred revenue $ 6,411 $ 5,525
Schedule of commission cost	The table below summarizes the deferred commission costs as of December 31, 2020 and 2019: As of December 31, (in thousands) 2020 2019 Deferred costs – current $ 152 $ 183 Deferred costs - noncurrent 77 145 Total deferred costs $ 229 $ 328
Schedule of our liabilities that are measured at fair value on a recurring basis	The table below provides information on our liabilities that are measured at fair value on a recurring basis: Fair Value (in thousands) Fair Value Hierarchy Warrant liability (1), December 31, 2020 $ — Level 3 Warrant liability (1), December 31, 2019 $ 120 Level 3 (1) In the third quarter of 2020, the warrant liability was extinguished upon full exercise of the warrants, which were issued in connection with our credit facility (see Note 6 – Debt for additional information on our credit facility and related warrant liability). The fair value of the warrant liability was determined using the Black-Scholes pricing model. For the years ended December 31, 2020 and 2019, gains on fair value adjustments totaling $120,000 and $99,000, respectively, were included in the statements of operations within change in fair value of warrant liability.
Schedule of antidilutive securities excluded from computation of earnings Per share	Potentially dilutive securities outstanding as of December 31, 2020 and 2019, which were excluded from the computation of basic and diluted net loss per share for the years then ended, are as follows: December 31, (in thousands) 2020 2019 Preferred stock 263 295 Options 517 965 Warrants 81 425 Restricted stock units 958 429 Total 1,819 2,114

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	12 Months Ended
	Dec. 31, 2020
INTANGIBLE ASSETS
Schedule of finite-Lived intangible assets	Intangible assets as of December 31, 2020 and 2019 consisted of the following: December 31, (in thousands) 2020 2019 Finite-lived assets: Patents $ 3,779 $ 3,698 Capitalized software development costs 2,676 1,717 Accumulated amortization (4,328) (3,710) Finite-lived assets, net 2,127 1,705 Indefinite-lived assets: Domain name 10 10 Intangible assets, net $ 2,137 $ 1,715
Summary of amortization expense associated with intangible assets	The following table summarizes amortization expense associated with intangible assets for the fiscal years ended December 31, 2020 and 2019: Year ended December 31, (in thousands) 2020 2019 Patents $ 428 $ 375 Capitalized software development costs 449 279 Total amortization expense $ 877 $ 654
Schedule of weighted average remaining useful life of finite-lived intangible assets (in years)	The weighted average remaining useful life of our finite-lived intangible assets (in years) as of December 31, 2020 are as follows: Weighted average remaining amortization period (in years) Patents 2.1 Capitalized software development costs 2.4

LEASE LIABILITIES AND RIGHT O_2

LEASE LIABILITIES AND RIGHT OF USE ASSETS (Tables)	12 Months Ended
	Dec. 31, 2020
LEASE LIABILITIES AND RIGHT OF USE ASSETS
Schedule of finance leased assets included in property plant and equipment	The following summarizes the assets acquired under finance leases, included in property and equipment: As of December 31, (in thousands) 2020 2019 Computer equipment $ 177 $ 157 Less: accumulated depreciation (116) (60) Assets acquired under finance leases, net $ 61 $ 97
Schedule of total remaining future minimum lease payments for finance leases	The following summarizes the total lease liabilities and remaining future minimum lease payments at December 31, 2020 (in thousands): Finance Operating Year ending December 31, Leases Leases Total 2021 $ 50 $ 262 $ 312 2022 14 257 271 2023 1 118 119 2024 — 81 81 Total minimum lease payments 65 718 783 Less: present value discount (4) (62) (66) Total lease liabilities $ 61 $ 656 $ 717 Current portion of lease liabilities $ 49 $ 229 $ 278 Long term portion of lease liabilities $ 12 $ 427 $ 439
Schedule of lease expense	The following summarizes expenses associated with our finance and operating leases for the year ended December 31, 2020 (in thousands): Finance lease expenses: Depreciation expense $ 56 Interest on lease liabilities 6 Total Finance lease expense 62 Operating lease expense 292 Short-term lease and related expenses 155 Total lease expenses $ 509
Schedule of lease terms and discount rates	The following table provides information about the remaining lease terms and discount rates applied as of December 31, 2020: Weighted average remaining lease term (years) Operating Leases 2.95 Finance Leases 1.44 Weighted average discount rate (%) Operating Leases 6.00 Finance Leases 6.00

DEBT (Tables)

DEBT (Tables)	12 Months Ended
	Dec. 31, 2020
DEBT
Summary of outstanding principal balances on debt	(in thousands) December 31, 2020 Term Loan $ 1,302 Less: Short term portion (219) Long term portion of debt $ 1,083

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	12 Months Ended
	Dec. 31, 2020
STOCK-BASED COMPENSATION
Schedule of stock-based compensation expense	Year ended December 31, (in thousands) 2020 2019 Stock Options $ 300 $ 322 Restricted Stock Units 3,789 894 Unrestricted Shares of Common Stock 49 — Total $ 4,138 $ 1,216
Schedule of share-based compensation, stock options, activity	Weighted Intrinsic Weighted Average Value Number of Average Remaining of Options Exercise Price Term Exercisable Options Outstanding at December 31, 2018 997,989 $ 4.67 2.14 925,545 $ 4,705,000 Granted 189,599 6.54 9.25 Exercised (37,528) 1.75 Forfeited/Expired (185,017) 11.83 Outstanding at December 31, 2019 965,043 $ 3.70 3.01 759,631 $ 1,666,000 Granted 220,267 12.31 5.00 Exercised (433,180) 2.07 Forfeited/Expired (235,219) 7.00 Outstanding at December 31, 2020 516,911 $ 7.24 2.70 294,894 $ 9,610,000 Exercisable as of December 31, 2020 294,894 $ 3.95 1.02 $ 6,452,000
Schedule of weighted average assumptions for estimating the stock-based compensation	2020 2019 Expected life 3.16 years 4.70 years Risk-free interest rate 0.19 % 1.87 % Weighted average volatility factor 107.28 % 148.41 % Dividend yield — —
Schedule of non-vested restricted stock shares activity	Restricted stock units outstanding as of December 31, 2018 222,514 Granted 206,405 Forfeited/Canceled — Restricted stock units outstanding as of December 31, 2019 428,919 Granted 800,695 Settled (116,656) Forfeited/Canceled (154,580) Total restricted stock units outstanding at December 31, 2020 958,378 Vested restricted stock units at December 31, 2020 285,108 Unvested restricted stock units as of December 31, 2020 673,270
Schedule of other share-based compensation, activity	The following table summarizes the warrant activity for the years ended December 31, 2020 and 2019: Weighted Intrinsic Weighted Average Value Number of Average Remaining of Warrants Exercise Price Term Warrants Outstanding at December 31, 2018 1,781,715 $ 4.2 2.23 $ 8,930,000 Granted 146,667 6.00 0.62 Exercised (1,279,550) 1.85 Forfeited/Expired (224,124) 5.33 Outstanding at December 31, 2019 424,708 5.31 0.82 189,000 Granted — — Exercised (321,467) 4.77 Forfeited/Expired (22,188) 9.59 Outstanding at December 31, 2020 81,053 $ 6.25 0.94 $ 1,587,000

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2020
INCOME TAXES
Schedule of deferred tax assets and liabilities	December 31, (in thousands) 2020 2019 Deferred tax assets: Intangible assets $ 269 $ — Bad debt expense 21 — Accrued compensation expense 83 — Deferred revenue and costs 2 — Stock-based compensation 1,494 — Operating lease liability 193 — State NOL carryforwards 2,516 1,380 Federal NOL carryforwards 8,954 6,378 Total Deferred Tax Assets 13,532 7,758 Valuation allowance (13,304) (7,758) Net deferred tax assets 228 — Deferred tax liabilities: Property and equipment (62) — Right of use assets (166) — Total deferred tax liabilities (228) — Net deferred tax asset (liability) $ — $ —

ORGANIZATION AND DESCRIPTION _2

ORGANIZATION AND DESCRIPTION OF BUSINESS (Details)	12 Months Ended
	Dec. 31, 2020segment
ORGANIZATION AND DESCRIPTION OF BUSINESS
Number of operating segments	1

CAPITAL RAISE AND LIQUIDITY (De

CAPITAL RAISE AND LIQUIDITY (Details) - USD ($)	3 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2020	Dec. 31, 2019
CAPITAL RAISE AND LIQUIDITY
Number of shares issued (in shares)	473,239
Issue price per share (in dollars per share)	$ 17.75
Proceeds from common stock offering, net of transaction costs		$ 7,824,000	$ 0
Cash		9,095,000
Working capital		5,616,000
Cash used in operating activities		$ (1,906,000)	$ (5,617,000)

SIGNIFICANT ACCOUNTING POLICI_4

SIGNIFICANT ACCOUNTING POLICIES - Disaggregate revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
SIGNIFICANT ACCOUNTING POLICIES
Enterprise	$ 10,735	$ 7,252
Partner and Marketplace	9,740	3,513
Total revenues	$ 20,475	$ 10,765

SIGNIFICANT ACCOUNTING POLICI_5

SIGNIFICANT ACCOUNTING POLICIES - Deferred Revenue, by Arrangement (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
SIGNIFICANT ACCOUNTING POLICIES
Deferred revenue - current	$ 6,328,000	$ 5,372,000
Deferred revenue - noncurrent	83,000	153,000
Total deferred revenue	$ 6,411	$ 5,525

SIGNIFICANT ACCOUNTING POLICI_6

SIGNIFICANT ACCOUNTING POLICIES - Deferred commission cost (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Deferred costs - current	$ 152	$ 183
Deferred costs - noncurrent	77	145
Accounting Standards Update 2014-09 [Member]
Deferred costs - current	152	183
Deferred costs - noncurrent	77	145
Total deferred costs	$ 229	$ 328

SIGNIFICANT ACCOUNTING POLICI_7

SIGNIFICANT ACCOUNTING POLICIES - Fair value on a recurring basis (Details) $ in Thousands	Dec. 31, 2019USD ($)
Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Warrant liability	$ 120

SIGNIFICANT ACCOUNTING POLICI_8

SIGNIFICANT ACCOUNTING POLICIES - Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares shares in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	1,819	2,114
Preferred Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	263	295
Stock Options
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	517	965
Warrant
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	81	425
Restricted Stock Units
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	958	429

SIGNIFICANT ACCOUNTING POLICI_9

SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details) - USD ($)	12 Months Ended		24 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020
Summary Of Significant Accounting Policies
Total revenue recognized from both the beginning balance and current period increase in contract liability	$ 5,269,000
Deferred revenue recognized through the period (as a percent)	95.00%
Amortization of Deferred Sales Commissions	$ 250,000	$ 240,000
Impairment loss			$ 0
Allowance for doubtful accounts	79,000	63,000	79,000
Bad debt expense	128,000	13,000
Additional operating lease liabilities	$ 656,000		$ 656,000
Property, Plant and Equipment, Useful Life	3 years
Property and equipment acquired by cash	$ 0	56,000
Equipment acquired from finance leases	20,000	61,000
Depreciation	86,000	69,000
Amortization expense	$ 877,000	654,000
Number of Reportable Segments	1
Gains on fair value adjustments	$ (120,000)	(99,000)
Capitalized software development
Summary Of Significant Accounting Policies
Amortization expense	$ 449,000	279,000
Useful life	3 years
Patents
Summary Of Significant Accounting Policies
Amortization expense	$ 428,000	$ 375,000
Maximum
Summary Of Significant Accounting Policies
Service period for compensation cost expense	3 years
Maximum | Patents
Summary Of Significant Accounting Policies
Useful life	10 years
Minimum
Summary Of Significant Accounting Policies
Service period for compensation cost expense	1 year
Minimum | Patents
Summary Of Significant Accounting Policies
Useful life	5 years
Major Customer Number One [Member] | Customer Concentration Risk [Member] | Sales Revenue, Net [Member]
Summary Of Significant Accounting Policies
Concentration Risk, Percentage	16.70%	10.00%
Major Customer Number One [Member] | Customer Concentration Risk [Member] | Accounts Receivable [Member]
Summary Of Significant Accounting Policies
Concentration Risk, Percentage	25.00%	40.00%
Major Customer Number Two [Member] | Customer Concentration Risk [Member] | Accounts Receivable [Member]
Summary Of Significant Accounting Policies
Concentration Risk, Percentage	13.00%
Major Customer Number Three [Member] | Customer Concentration Risk [Member] | Accounts Receivable [Member]
Summary Of Significant Accounting Policies
Concentration Risk, Percentage	13.00%

INTANGIBLE ASSETS (Details)

INTANGIBLE ASSETS (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Intangible Assets
Accumulated amortization	$ (4,328,000)	$ (3,710,000)
Finite-lived assets, net	2,127,000	1,705,000
Intangible assets, net	2,137,000	1,715,000
Domain name
Intangible Assets
Indefinite-lived assets	10,000	10,000
Patents
Intangible Assets
Finite-Lived Intangible Assets, Gross	3,779,000	3,698,000
Capitalized Costs	141,000	0
Capitalized software development
Intangible Assets
Finite-Lived Intangible Assets, Gross	2,676,000	1,717,000
Capitalized Costs	$ 1,157,000	$ 307,000

INTANGIBLE ASSETS - Amortizatio

INTANGIBLE ASSETS - Amortization expense (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Total amortization expense	$ 877,000	$ 654,000
Patents
Finite-Lived Intangible Assets [Line Items]
Total amortization expense	428,000	375,000
Capitalized software development
Finite-Lived Intangible Assets [Line Items]
Total amortization expense	$ 449,000	$ 279,000

INTANGIBLE ASSETS - Weighted av

INTANGIBLE ASSETS - Weighted average remaining useful life (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Loss on impairment of long-lived assets	$ 0	$ 0
Patents
Finite-Lived Intangible Assets [Line Items]
Weighted average remaining amortization period (in years)	2 years 1 month 6 days
Capitalized software development
Finite-Lived Intangible Assets [Line Items]
Weighted average remaining amortization period (in years)	2 years 4 months 24 days

LEASE LIABILITIES AND RIGHT O_3

LEASE LIABILITIES AND RIGHT OF USE ASSETS - Right to use assets under finance leases (Details) - Computer Equipment [Member] - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Lessee, Finance Lease, Description [Abstract]
Computer equipment	$ 177	$ 157
Less: accumulated depreciation	(116)	(60)
Assets acquired under finance leases, net	$ 61	$ 97

LEASE LIABILITIES AND RIGHT O_4

LEASE LIABILITIES AND RIGHT OF USE ASSETS - Future minimum finance lease payments (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
LEASE LIABILITIES AND RIGHT OF USE ASSETS
2021	$ 50,000
2022	14,000
2023	1,000
Total minimum lease payments	65,000
Less: present value discount	(4,000)
Total lease liabilities	61,000	$ 104,000
Current portion of lease liabilities	49,000	52,000
Long term portion of lease liabilities	$ 12,000	$ 52,000

LEASE LIABILITIES AND RIGHT O_5

LEASE LIABILITIES AND RIGHT OF USE ASSETS - Future minimum operating lease payments (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
LEASE LIABILITIES AND RIGHT OF USE ASSETS
2021	$ 262
2022	257
2023	118
2024	81
Total minimum lease payments	718
Less: present value discount	(62)
Total operating lease liabilities	656
Current portion of operating lease obligations	229	$ 209
Long term portion of lease liabilities	$ 427	$ 655

LEASE LIABILITIES AND RIGHT O_6

LEASE LIABILITIES AND RIGHT OF USE ASSETS - Finance Leases and Operating Leases (Details) $ in Thousands	Dec. 31, 2020USD ($)
LEASE LIABILITIES AND RIGHT OF USE ASSETS
2021	$ 312
2022	271
2023	119
2024	81
Total minimum lease payments	783
Less: present value discount	(66)
Total lease liabilities	717
Current portion of lease liabilities	278
Long term portion of lease liabilities	$ 439

LEASE LIABILITIES AND RIGHT O_7

LEASE LIABILITIES AND RIGHT OF USE ASSETS - Lease expenses (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2020USD ($)
Finance lease expenses:
Depreciation expense	$ 56
Interest on lease liabilities	6
Total Finance lease expense	62
Operating lease expense	292
Short-term lease and related expenses	155
Total lease expenses	$ 509

LEASE LIABILITIES AND RIGHT O_8

LEASE LIABILITIES AND RIGHT OF USE ASSETS - Remaining lease terms and discount rates (Details)	Dec. 31, 2020
LEASE LIABILITIES AND RIGHT OF USE ASSETS
Weighted average remaining lease term (years) - Operating Leases	2 years 11 months 12 days
Weighted average remaining lease term (years) - Finance Leases	1 year 5 months 9 days
Weighted average discount rate (%) - Operating Leases	6.00%
Weighted average discount rate (%) - Finance Leases	6.00%

LEASE LIABILITIES AND RIGHT O_9

LEASE LIABILITIES AND RIGHT OF USE ASSETS - Additional Information (Details)	12 Months Ended
	Dec. 31, 2020USD ($)ft²	Dec. 31, 2019USD ($)	Jun. 30, 2019ft²
Total finance lease liabilities | $	$ 61,000	$ 104,000
Debt Instrument, Interest Rate, Effective Percentage	6.00%
Operating Lease, Payments | $	$ 255,000,000	$ 231,000,000
Marietta Georgia
Area of Land | ft²			6,700
Georgia [Member]
Area of Land | ft²	5,200

DEBT - Outstanding principal ba

DEBT - Outstanding principal balances (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Less: Short term portion	$ (219,000)	$ 0
Long term portion of debt	1,083,000	$ 0
PPP Loan
Debt Instrument [Line Items]
Term Loan	1,302,000
Less: Short term portion	(219,000)
Long term portion of debt	$ 1,083,000

DEBT (Details)

DEBT (Details) - USD ($)	Dec. 31, 2020	Aug. 14, 2020	Aug. 31, 2019	Sep. 30, 2020	Apr. 15, 2020	Dec. 31, 2019	Aug. 14, 2019
Line of Credit Facility [Line Items]
Amounts drawn under loan agreement		$ 0
Cash received in full exercise of warrants			$ 2,115,000
Fair value of warrants				$ 219,000
Unamortized deferred cost of warrants included in prepaid expenses and other current assets on the balance sheet	$ 0					$ 137,000
PPP Loan
Line of Credit Facility [Line Items]
Interest rate (as a percent)	1.00%
Agreement amount					$ 1,302,000
Outstanding principal balance	$ 1,302,000
Accrued interest	$ 9,000
Sero Capital LLC
Line of Credit Facility [Line Items]
Percentage of equity interests held by the related party							10.00%
Warrants issued							146,667
Warrants exercise price							$ 6
Cash received in full exercise of warrants				$ 880,000
Unsecured credit facility
Line of Credit Facility [Line Items]
Maximum borrowing capacity							$ 2,000,000

SERIES A CONVERTIBLE PREFERRE_2

SERIES A CONVERTIBLE PREFERRED STOCK - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Class of Stock [Line Items]
Preferred stock issue per share	$ 10
Preferred stock dividend rate (in percentage)	125.00%
Common stock dividends shares	58,288	55,927
Preferred stock unpaid dividend equivalent common stock, Shares	$ 255,000	$ 245,000
Preferred stock liquidation preference value	1,155,000	$ 1,295,000
Aggregate amount to redemption	$ 1,380,000
Preferred stock liquidation preference per share	$ 4.385
Series A Preferred Stock
Class of Stock [Line Items]
Preferred stock outstanding shares	90,000	105,000
Preferred stock issue per share	$ 10	$ 10
Preferred stock dividend rate (in percentage)	5.00%	5.00%
Redemption price (in dollars per share)	$ 4.385
Dividends payable	$ 51,000
Common stock dividends shares	11,574

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - USD ($)	Aug. 14, 2020	Sep. 30, 2020	Dec. 31, 2020	Dec. 31, 2019	Aug. 14, 2019
Due to Related Parties			$ 70,000
Stock Issued During Period, Shares, New Issues		473,239
Proceeds from Issuance of Common Stock			$ 7,824,000	$ 0
Proceeds from Lines of Credit	$ 0
Unsecured credit facility
Maximum borrowing capacity					$ 2,000,000
Sero Capital LLC
Interest rate	10.00%
Class of Warrant or Right, Number of Securities Called by Warrants or Rights	2,000,000
Sero Capital LLC
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners					10.00%
Class of Warrant or Right, Number of Securities Called by Warrants or Rights					146,667
Class of Warrant or Right, Exercise Price of Warrants or Rights					$ 6

COMMITMENTS AND CONTINGENCIES -

COMMITMENTS AND CONTINGENCIES - Additional Information (Details)	12 Months Ended
	Dec. 31, 2020USD ($)
COMMITMENTS AND CONTINGENCIES
Shared office arrangement minimum fees due	$ 31,000
Minimum fees due under amended shared office arrangement	$ 59,000

STOCK-BASED COMPENSATION - Stoc

STOCK-BASED COMPENSATION - Stock-based compensation expense (Details) - 2020 Equity Incentive Plan - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 4,138	$ 1,216
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	300	322
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	3,789	$ 894
Unrestricted Shares of Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 49

STOCK-BASED COMPENSATION - St_2

STOCK-BASED COMPENSATION - Stock option Activity (Details) - Stock Options - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Number of Options
Balance at beginning of the period (in shares)	965,043	997,989
Number of options granted	220,267	189,599
Exercised	(433,180)	(37,528)
Forfeited/Expired	(235,219)	(185,017)
Balance at end of the period (in shares)	516,911	965,043	997,989
Exercisable (in shares)	294,894	759,631	925,545
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number	294,894	759,631	925,545
Weighted Average Exercise Price
Outstanding at beginning of the period (in dollars per share)	$ 3.70	$ 4.67
Granted (in dollars per share)	12.31	6.54
Exercised (in dollars per share)	2.07	1.75
Forfeited/Expired	7	11.83
Outstanding at end of the period (in dollars per share)	7.24	$ 3.70	$ 4.67
Exercisable (in dollars per share)	$ 3.95
Weighted Average Remaining Term
Outstanding, Weighted Average Remaining Term	2 years 8 months 12 days	3 years 4 days	2 years 1 month 21 days
Granted Weighted Average Remaining Term	5 years	9 years 3 months
Exercised Weighted Average Remaining Term	1 year 7 days
Intrinsic Value of Options
Outstanding, Intrinsic Value of Options (in dollars)	$ 1,666,000	$ 4,705,000
Outstanding, Intrinsic Value of Options (in dollars)	9,610,000	$ 1,666,000	$ 4,705,000
Exercisable as of December 31, 2020	$ 6,452,000

STOCK-BASED COMPENSATION - St_3

STOCK-BASED COMPENSATION - Stock-based compensation, weighted average assumptions (Details)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
STOCK-BASED COMPENSATION
Expected life	3 years 1 month 28 days	4 years 8 months 12 days
Risk-free interest rate (as a percent)	0.19%	1.87%
Weighted average volatility factor (as a percent)	107.28%	148.41%

STOCK-BASED COMPENSATION - Rest

STOCK-BASED COMPENSATION - Restricted Stock Unit Activity (Details) - Restricted Stock Units - shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Restricted stock units outstanding	428,919	222,514
Granted	800,695	206,405
Settled	(116,656)
Forfeited/Cancelled	(154,580)
Total restricted stock units outstanding	958,378	428,919
Vested restricted stock units at December 31, 2020	285,108
Unvested restricted stock units as of December 31, 2020	673,270

STOCK-BASED COMPENSATION - Re_2

STOCK-BASED COMPENSATION - Restricted stock units, Additional Information (Details) - USD ($)	3 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense		$ 4,138,000	$ 1,216,000
Weighted average volatility factor (as a percent)		107.28%	148.41%
Risk-free interest rate (as a percent)		0.19%	1.87%
Performance period		3 years 1 month 28 days	4 years 8 months 12 days
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options granted	260,000
Performance-based
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options granted	105,000	55,000
Stock-based compensation expense		$ 314,000
Market-based
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options granted	155,000
Stock-based compensation expense		$ 1,506,000
Weighted average volatility factor (as a percent)		136.52%
Risk-free interest rate (as a percent)		0.26%
Performance period		5 years

STOCK-BASED COMPENSATION - Warr

STOCK-BASED COMPENSATION - Warrants activity (Details) - USD ($)	1 Months Ended	12 Months Ended
	Aug. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2017
Number of warrants
Exercised	(1,212,136)
Warrant
Number of warrants
Balance at beginning of the period (In shares)		424,708
Granted			146,667
Exercised		(321,467)	(1,279,550)
Forfeited/Expired		(22,188)	(224,124)
Balance at end of the period (In shares)		81,053	424,708	1,781,715
Weighted Average Exercise Price
Balance at beginning of the period (in dollars per share)		$ 5.31
Granted (in dollars per share)			$ 6
Exercised (in dollars per share)		4.77	1.85
Forfeited/Expired (in dollars per share)		9.59	5.33
Balance at end of the period (in dollars per share)		$ 6.25	$ 5.31	$ 4.20
Weighted Average Remaining Term
Outstanding (In years)		11 months 9 days	9 months 26 days	2 years 2 months 23 days
Granted			7 months 13 days
Intrinsic Value of Warrants
Balance at beginning of the period (In dollars)		$ 189,000
Balance at end of the period (In dollars)		$ 1,587,000	$ 189,000	$ 8,930,000

STOCK-BASED COMPENSATION - Addi

STOCK-BASED COMPENSATION - Additional Information (Details) - USD ($)	1 Months Ended	3 Months Ended	12 Months Ended
	Aug. 31, 2019	Sep. 30, 2020	Dec. 31, 2020	Dec. 31, 2019	Dec. 09, 2020	Aug. 16, 2019	Aug. 15, 2019	Sep. 26, 2018
Class of Stock [Line Items]
Common Stock, Shares Authorized			50,000,000
Preferred stock dividend rate (in percentage)			125.00%
Cash received in full exercise of warrants	$ 2,115,000
Number of shares, exercised	1,212,136
2020 Equity Incentive Plan
Class of Stock [Line Items]
Common Stock, Shares Authorized					1,000,000
Warrant
Class of Stock [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights							$ 2.50
Class of Warrant or Right, Number of Securities Called by Warrants or Rights						1,194,990
Warrant two
Class of Stock [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights						$ 4.07	$ 6.25
Class of Warrant or Right, Number of Securities Called by Warrants or Rights						85,719
Sero Capital LLC
Class of Stock [Line Items]
Cash received in full exercise of warrants		$ 880,000
Warrant
Class of Stock [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights						$ 1.63
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period				146,667
Class Of Warrant Or Right Grant Date Fair Value		$ 146,667
Number of shares, exercised			321,467	1,279,550
Warrant | Alexandre Zyngier
Class of Stock [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights								$ 6
Class of Warrant or Right, Number of Securities Called by Warrants or Rights								146,667
Stock Options
Class of Stock [Line Items]
Unrecognized stock-based compensation expense			$ 1,373,000
Restricted Stock Units
Class of Stock [Line Items]
Unrecognized stock-based compensation expense			6,413,000
Warrant
Class of Stock [Line Items]
Unrecognized stock-based compensation expense			$ 0
Series A Preferred Stock
Class of Stock [Line Items]
Preferred stock dividend rate (in percentage)			5.00%	5.00%

INCOME TAXES - Additional Infor

INCOME TAXES - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
INCOME TAXES
Federal and state income tax expense	$ 0	$ 0
Operating Loss Carryforwards	42,636,000
Deferred Tax Assets, Net	0	0
Deferred Tax Assets, Valuation Allowance	$ 13,304,000	$ 7,758,000

INCOME TAXES - Deferred tax ass

INCOME TAXES - Deferred tax assets and liabilities (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Deferred tax assets:
Intangible assets	$ 269,000
Accrued compensation expense	83,000
Bad debt expense	21,000
Deferred revenue and costs	2,000
Stock-based compensation	1,494,000
Operating lease liability	193,000
State NOL carryforwards	2,516,000	$ 1,380,000
Federal NOL carryforwards	8,954,000	6,378,000
Total Deferred Tax Assets	13,532,000	7,758,000
Valuation allowance	(13,304,000)	(7,758,000)
Net deferred tax assets	228,000
Deferred tax liabilities:
Property and equipment	(62,000)
Right of use assets	(166,000)
Total deferred tax liabilities	(228,000)
Net deferred tax asset (liability)	$ 0	$ 0

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - USD ($)	Mar. 08, 2021	Mar. 31, 2021	Sep. 30, 2020	Dec. 31, 2020	Dec. 31, 2019	Feb. 11, 2021
Subsequent Event [Line Items]
Number of shares sold			473,239
Proceeds from common stock offering, net of transaction costs				$ 7,824,000	$ 0
Restricted Stock Units
Subsequent Event [Line Items]
Number of RSUs vested during the period				285,108
Subsequent Event | Interim Chief Executive Officer | Restricted Stock Units
Subsequent Event [Line Items]
Number of RSUs vested during the period		55,000
Taxes paid in connection with settlement of RSUs		$ 373,000
Number of shares surrendered		15,651
Subsequent Event | Sales agreement with B. Riley Securities, Inc.
Subsequent Event [Line Items]
Maximum aggregate offering price						$ 30,000,000
Number of shares sold	378,108
Proceeds from common stock offering, net of transaction costs	$ 14,100,000