AudioEye (AEYE) 10-Q 14 May 19 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2019	May 14, 2019
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
Entity Registrant Name	AUDIOEYE INC
Entity Central Index Key	0001362190
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Trading Symbol	AEYE
Entity Common Stock, Shares Outstanding		7,642,337
Entity Emerging Growth Company	false
Entity Small Business	true

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Current assets:
Cash	$ 4,089,717	$ 5,741,549
Accounts receivable, net	288,342	172,384
Marketable securities, held in related party	492	510
Deferred costs, short term	178,781	176,006
Prepaid expenses and other current assets	129,388	49,901
Total current assets	4,686,720	6,140,350
Property and equipment, net	114,387	108,007
Right of use assets	512,966	0
Deferred costs, long term	105,085	93,790
Intangible assets, net	1,961,787	2,061,404
Goodwill	700,528	700,528
Total assets	8,081,473	9,104,079
Current liabilities:
Accounts payable and accrued expenses	340,861	93,544
Related party payables	14,467	14,467
Finance lease liabilities	37,404	30,172
Operating lease liabilities	152,352	0
Deferred rent	0	4,472
Deferred revenue	2,574,097	2,626,712
Total current liabilities	3,119,181	2,769,367
Long term liabilities:
Finance lease liabilities	55,165	51,150
Operating lease liabilities	371,334	0
Deferred rent	0	6,585
Deferred revenue	310,967	402,075
Total liabilities	3,856,647	3,229,177
Stockholders' equity:
Preferred stock, value
Common stock, $0.00001 par value, 50,000,000 shares authorized, 7,623,227 and 7,579,995 shares issued and outstanding as of March 31, 2019 and December 31, 2018	76	76
Additional paid-in capital	48,509,276	48,017,926
Accumulated deficit	(44,284,527)	(42,143,101)
Total stockholders' equity	4,224,826	5,874,902
Total liabilities and stockholders' equity	8,081,473	9,104,079
Series A Preferred Stock [Member]
Stockholders' equity:
Preferred stock, value	$ 1	$ 1

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2019	Dec. 31, 2018
Preferred Stock, Par or Stated Value Per Share	$ 0.00001	$ 0.00001
Preferred Stock, Shares Authorized	10,000,000	10,000,000
Common Stock, Par or Stated Value Per Share	$ 0.00001	$ 0.00001
Common Stock, Shares Authorized	50,000,000	50,000,000
Common Stock, Shares, Issued	7,623,227	7,579,995
Common Stock, Shares, Outstanding	7,623,227	7,579,995
Series A Preferred Stock [Member]
Preferred Stock, Par or Stated Value Per Share	$ 0.00001	$ 0.00001
Preferred Stock, Shares Authorized	200,000	200,000
Preferred Stock, Shares Issued	105,000	105,000
Preferred Stock, Shares Outstanding	105,000	105,000

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Revenues	$ 1,985,678	$ 1,149,342
Cost of revenue	902,984	587,464
Gross profit	1,082,694	561,878
Operating expenses:
Selling and marketing	871,875	610,662
Research and development	215,253	49,667
General and administrative	2,136,326	1,064,625
Total operating expenses	3,223,454	1,724,954
Operating loss	(2,140,760)	(1,163,076)
Other income (expense):
Unrealized (loss) gain on marketable securities	(18)	228
Interest income (expense), net	(648)	237
Total other (loss) income	(666)	465
Net loss	(2,141,426)	(1,162,611)
Dividends on Series A convertible preferred stock	(12,945)	(13,750)
Net loss available to common stockholders	$ (2,154,371)	$ (1,176,361)
Net loss per common share-basic and diluted	$ (0.28)	$ (0.18)
Weighted average common shares outstanding-basic and diluted	7,611,296	6,466,563

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($)	Total	Common Stock [Member]	Preferred Stock [Member]	Additional Paid in Capital [Member]	Accumulated Deficit [Member]
Balance at Dec. 31, 2017	$ 696,011	$ 65	$ 1	$ 40,121,845	$ (39,425,900)
Balance (in shares) at Dec. 31, 2017		6,467,066	110,000
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets (Accounting Standards Update 2014-09 [Member]) at Mar. 31, 2018	80,153				80,153
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets (Accounting Standards Update 2017-11 [Member]) at Mar. 31, 2018	2,984,010			761,490	2,222,520
Restricted stock units, warrants and options issued for services	367,303			367,303
Net loss	(1,162,611)				(1,162,611)
Balance at Mar. 31, 2018	2,964,866	$ 65	$ 1	41,250,638	(38,285,838)
Balance (in shares) at Mar. 31, 2018		6,467,066	110,000
Balance at Dec. 31, 2018	5,874,902	$ 76	$ 1	48,017,926	(42,143,101)
Balance (in shares) at Dec. 31, 2018		7,579,995	105,000
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets (Accounting Standards Update 2014-09 [Member]) at Mar. 31, 2019	0
Common stock issued in exchange for exercise of options and warrants	42,450			42,450
Common stock issued in exchange for exercise of options and warrants (in shares)		43,232
Restricted stock units, warrants and options issued for services	448,900			448,900
Net loss	(2,141,426)				(2,141,426)
Balance at Mar. 31, 2019	$ 4,224,826	$ 76	$ 1	$ 48,509,276	$ (44,284,527)
Balance (in shares) at Mar. 31, 2019		7,623,227	105,000

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (2,141,426)	$ (1,162,611)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	173,275	127,665
Option, warrant, RSU and PSU expense	448,900	367,303
Unrealized loss (gain) on marketable securities	18	(228)
Amortization of deferred commission	51,399	9,974
Noncash operating lease expense	42,902	0
Changes in operating assets and liabilities:
Accounts receivable	(115,958)	(31,512)
Deferred costs	(65,469)	(30,327)
Other current assets	(79,487)	18,923
Accounts payable and accruals	247,317	(25,954)
Operating lease liabilities	(43,239)	(1,344)
Deferred revenue	(143,723)	140,464
Related party payables	0	(9,068)
Net cash (used in) operating activities	(1,625,491)	(596,715)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of equipment	0	(10,893)
Software development costs	(60,284)	(75,825)
Net cash (used in) investing activities	(60,284)	(86,718)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of options and warrants	42,450	0
Repayments of notes payable and capital leases	(8,507)	0
Net cash provided by financing activities	33,943	0
Net increase in cash	(1,651,832)	(683,433)
Cash-beginning of period	5,741,549	1,960,430
Cash-end of period	4,089,717	1,276,997
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Interest paid	1,343	0
Income taxes paid	0	0
Non cash investing and financing activities:
Equipment acquired from capital leases	19,754	0
Reclassify fair value of warrant liabilities to equity upon adoption of ASU 2017-11	0	2,984,010
Accounting Standards Update 2014-09 [Member]
Non cash investing and financing activities:
Effect of adoption of ASU 2014-09, Revenue from Contracts with Customers	0	80,153
Accounting Standards Update 2016-02 [Member]
Non cash investing and financing activities:
ROU assets and operating lease obligations recognized upon adoption of ASU 2016-02	$ 568,268	$ 0

ORGANIZATION AND BASIS OF PRESE

ORGANIZATION AND BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION AND BASIS OF PRESENTATION	NOTE 1 — ORGANIZATION AND BASIS OF PRESENTATION The accompanying unaudited interim financial statements of AudioEye, Inc. and its wholly-owned subsidiary (together, the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission, and should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018, as filed with the Securities and Exchange Commission on March 27, 2019. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year. Certain prior period amounts have been reclassified to conform to current period classification. Notes to the financial statements that would substantially duplicate the disclosures contained in the audited financial statements for the year ended December 31, 2018 as reported in the Company’s Annual Report on Form 10-K have been omitted. Corporate Information and Background AudioEye, Inc. (“we”, “our”, the “Company”) was incorporated on May 20, 2005 in the state of Delaware. The Company has developed patented, Internet content publication and distribution software that enables conversion of any media 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. The Company is focused on developing innovations in the field of networked and device embedded audio technology. The Company owns a unique patent portfolio comprised of six issued patents in the United States, a notice of allowance from the U.S. Patent and Trademark Office for a seventh patent, and two U.S. patents pending with additional patents being drafted for filing with the U.S. Patent and Trademark Office and internationally. Our common stock has been listed on the NASDAQ Capital Market under the symbol “AEYE” since September 4, 2018. Prior to September 4, 2018, our common stock was quoted on the OTCQB and the OTC Bulletin Board beginning on April 15, 2013 under the same symbol. In August 2018, the Company sold 1,000,000 shares (the “Shares”) of its common stock at $6.25 per share for net proceeds of $5,609,215, after costs and expenses of $640,785 (the “Private Placement”). At the closing of the Private Placement, the Company entered into a registration rights agreement (the “Registration Rights Agreement”) with the investors pursuant to which the Company agreed to register the Shares for resale. On September 4, 2018, the Company filed a registration statement on Form S-1 covering the resale of the securities subject to the Registration Rights Agreement. On August 1, 2018, the Company amended its Certificate of Incorporation to implement a reverse stock split in the ratio of 1 share for every 25 shares Revenue Recognition Revenue is recognized when delivery of the promised goods or services is transferred to the Company’s customers, in an amount that reflects the consideration that the Company expects to be entitled to 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. Certain Software as a Service (“SaaS”) invoices are prepared on an annual basis. Any funds received for services not provided yet are held in deferred revenue and are recorded as revenue when earned. Subscription 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. Payments received in advance of services being rendered are recorded as deferred revenue. Any funds received for services not provided yet are held in deferred revenue and are recorded as revenue when earned. We generate substantially all our revenue from subscription services, which are comprised of subscription fees from customers on the Ally Platform. The following table presents our revenues disaggregated by type of good or service and sales channel: Three months ended March 31, 2019 2018 Subscription revenue and support – Direct $ 1,460,624 $ 945,637 Subscription revenue and support – Indirect (Strategic partners) 525,054 203,705 Total revenues $ 1,985,678 $ 1,149,342 There were significant changes in contract liabilities balances during the quarter ended March 31, 2019. The table below summarizes the activity within the deferred revenue accounts during the quarter ended March 31, 2019: December 31, Cash Revenue March 31, 2018 Received recognized 2019 Deferred revenue $ 3,028,787 $ 1,271,112 $ 1,414,835 $ 2,885,064 As of March 31, 2019, $2,574,097 was classified as short term deferred revenue and is expected to be recognized over the next twelve months following March 31, 2019. The remaining $310,967 is long-term deferred revenue to be recognized thereafter. At March 31, 2019, the Company had one customer representing 23% of the outstanding accounts receivable. At December 31, 2018, the Company had one customer representing 22% of the outstanding accounts receivable. The Company had one major customer (including such customer’s affiliates) which generated approximately 12% and 13% of the Company’s revenue in the three months ended March 31, 2019 and 2018, respectively. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include the fair value of the Company’s stock, stock-based compensation and the valuation allowance related to deferred tax assets. Actual results may differ from these estimates. Stock-Based Compensation The Company measures the cost of services received in exchange for an award of equity instruments based on the fair value of the award. For employees and directors, the fair value of the award is measured on the grant date and for non-employees the fair value of the award is generally re-measured on vesting dates and interim financial reporting dates until the service period is complete. The fair value amount is then recognized over the period during which services are required to be provided in exchange for the award, usually the vesting period. Stock-based compensation expense is recorded by the Company in the same expense classifications in the consolidated statements of operations, as if such amounts were paid in cash. Earnings (Loss) Per Share Basic earnings (loss) per share 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 earnings per share” reflects the potential dilution that could occur if our share-based awards and convertible securities were exercised or converted into common stock. The dilutive effect of our share-based awards is computed using the treasury stock method, which assumes all share-based awards 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. Potentially dilutive securities excluded from the computation of basic and diluted net earnings (loss) per share for the three months ended March 31, 2019 and 2018 are as follows: 2019 2018 Preferred stock 286,359 287,453 Options to purchase common stock 880,585 1,058,200 Warrants to purchase common stock 1,743,008 1,767,786 Restricted stock units 222,514 156,340 Totals 3,132,466 3,269,779 Fair Value Measurements 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 generally accepted accounting principles 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 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 Company has no liabilities measured at fair value on a recurring basis as of March 31, 2019 and December 31, 2018. The following are the Company’s assets measured at fair value on a recurring basis as of March 31, 2019 and December 31, 2018: Fair Value Fair Value Hierarchy Assets Marketable securities, March 31, 2019 $ 492 Level 1 Marketable securities, December 31, 2018 $ 510 Level 1 Leases In February 2016, the Financial Accounting Standards Board (“FASB”) established ASC Topic 842, Leases (Topic 842), by issuing ASU No. 2016-02, which requires lessees to recognize leases on the balance sheet and disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842; ASU No. 2018-10, Codification Improvements to Topic 842, Leases; and ASU No. 2018-11, Targeted Improvements. The new standard establishes a right-of-use (ROU) model that requires a lessee to recognize an ROU asset and lease liability on the balance sheet. Leases are classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the statement of operations. The Company adopted the new standard on January 1, 2019 using the modified-retrospective method, with an effective date or application date of January 1, 2019 and thus did not adjust comparative periods. The new standard provides a number of optional practical expedients in transition. The Company has elected the “package of practical expedients”, which permits it not to reassess under the new standard its prior conclusions about lease identification, lease classification and initial direct costs. The Company did not elect the use-of-hindsight practical expedient. The new standard had a material effect on the Company’s financial statements. The most significant effects of adoption relate to (1) the recognition of new ROU assets and lease liabilities on the Company’s balance sheet for real estate operating leases; and (2) providing significant new disclosures about the Company’s leasing activities. As of January 1, 2019, the Company recognized additional operating lease liabilities of $568,268 based on the present value of the remaining minimum rental payments under current leasing standards for existing operating leases. The Company recognized corresponding ROU assets of $557,212. In February 2019, the Company entered into a new lease in Marietta, Georgia, which will be recognized on the balance sheet upon lease commencement expected to be in June 2019. The new standard also provides practical expedients for an entity’s ongoing accounting. The Company elected the short-term lease recognition exemption for all leases that qualify. This means, for those leases that qualify, the Company does not recognize ROU assets or lease liabilities, and this includes not recognizing ROU assets or lease liabilities for existing short-term leases of those assets in transition. The Company expects changes to its disclosed lease recognition policies and practices, as well as to other related financial statement disclosures due to the adoption of this standard. See Note 6 for these revised disclosures for the first quarter of 2019. Recent Accounting Pronouncements In June 2018, the FASB issued ASU 2018-07, regarding ASC Topic 718 Compensation - Stock Compensation , which largely aligns the accounting for share-based compensation for non-employees with the accounting for share-based compensation for employees. The guidance is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period. The adoption of this standard did not have a material effect on our consolidated financial statements. There are various other updates recently issued, most of which represented technical corrections to the accounting literature or application to specific industries and are not expected to a have a material impact on the Company's financial position, results of operations or cash flows.

MANAGEMENT'S LIQUIDITY PLANS

MANAGEMENT'S LIQUIDITY PLANS	3 Months Ended
	Mar. 31, 2019
Going Concern [Abstract]
MANAGEMENT'S LIQUIDITY PLANS	NOTE 2 — MANAGEMENT’S LIQUIDITY PLANS As of March 31, 2019, the Company had cash of $4,089,717 and working capital of $1,567,539. In addition, the Company used actual net cash in operations of $1,625,491 during the quarter ended March 31, 2019. In August 2018, the Company sold 1,000,000 shares of its common stock at $ 6.25

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	3 Months Ended
	Mar. 31, 2019
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	NOTE 3 — PROPERTY AND EQUIPMENT Property and equipment as of March 31, 2019 and December 31, 2018 is summarized as follows: March 31, 2019 December 31, 2018 Computer equipment $ 62,170 $ 62,170 Equipment under finance lease 115,260 95,506 Furniture and fixtures 4,968 4,968 Total 182,398 162,644 Less accumulated depreciation (68,011 ) (54,637 ) Property and equipment, net $ 114,387 $ 108,007 Property and equipment are stated at cost and depreciated using the straight-line method over their estimated useful life of 3 years Included in net property and equipment are assets under finance leases (formerly known as capital leases) of $115,260, less accumulated depreciation of $25,173 as of March 31, 2019 and $95,506, less accumulated depreciation of $16,117 as of December 31, 2018. The Company spent $0 and $10,893 in the purchase of equipment during the three months ended March 31, 2019 and 2018, respectively. The Company also leased $19,754 in equipment during the three months ended March 31, 2019. Depreciation expense was $13,374 and $4,317 for the three months ended March 31, 2019 and 2018, respectively.

INTANGIBLE ASSETS

INTANGIBLE ASSETS	3 Months Ended
	Mar. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
INTANGIBLE ASSETS	NOTE 4 — INTANGIBLE ASSETS For the three months ended March 31, 2019 and 2018, the Company invested in Software development costs in the amounts of $60,284 and $75,825 respectively. Patents, technology and other intangibles with contractual terms are generally amortized over their estimated useful lives of ten years. When certain events or changes in operating conditions occur, an impairment assessment is performed and lives of intangible assets with determinable lives may be adjusted. Software development costs are amortized over their estimated useful life of three years. Intangible assets consisted of the following: March 31, 2019 December 31, 2018 Patents $ 3,697,709 $ 3,697,709 Capitalized software development 1,470,543 1,410,259 Domain name 10,000 10,000 Accumulated amortization (3,216,465 ) (3,056,564 ) Intangible assets, net $ 1,961,787 $ 2,061,404 Amortization expense for patents totaled $93,658 and $87,026 for the three months ended March 31, 2019 and 2018, respectively. Amortization expense for software development totaled $66,243 and $36,322 for the three months ended March 31, 2019 and 2018, respectively. Total amortization expense totaled $159,901 and $123,348 for the three months ended March 31, 2019 and 2018, respectively.

DEFERRED COSTS

DEFERRED COSTS	3 Months Ended
	Mar. 31, 2019
Deferred Policy Acquisition Costs Disclosures [Abstract]
DEFERRED COSTS	NOTE 5 — DEFERRED COSTS Effective January 1, 2018, the Company capitalizes initial and renewal sales commission payments in the period a customer contract is obtained, and payment is received; and the commissions are amortized consistent with the transfer of the goods or services to the customer over the expected period of benefit, which we have deemed to be the contract term. Such commissions are amortized over the greater of contract term or technological obsolescence period when the underlying contracted products are technology-based, such as for the SaaS-based platforms, or the expected customer relationship period when the underlying contracted products are not technology-based, such as for patient experience survey products. The table below summarizes the activity within the deferred commission costs account, during the three months ended March 31, 2019: December 31, Commission Commission March 31, 2018 Costs Deferred Amortized 2019 Deferred costs, short term $ 176,006 $ 54,174 $ (51,399 ) $ 178,781 Deferred costs, long term 93,790 11,295 - 105,085 Deferred commission costs $ 269,796 $ 65,469 $ (51,399 ) $ 283,866 During the three months ended March 31, 2019, the Company deferred an aggregate of $ 65,469 During the three months ended March 31, 2018, the Company deferred an aggregate of $ 30,327

LEASE LIABILITIES AND RIGHT OF

LEASE LIABILITIES AND RIGHT OF USE ASSETS	3 Months Ended
	Mar. 31, 2019
Leases, Capital [Abstract]
LEASE LIABILITIES AND RIGHT OF USE ASSETS	NOTE 6 — LEASE LIABILITIES AND RIGHT OF USE ASSETS Finance Leases March 31, December 31, 2019 2018 Finance equipment lease dated April 5, 2018 $ 11,743 $ 13,056 Finance equipment lease dated May 8, 2018 13,064 14,525 Finance equipment lease dated June 27, 2018 19,674 21,701 Finance equipment lease dated September 18, 2018 14,029 15,368 Finance equipment lease dated September 28, 2018 15,312 16,672 Finance equipment lease dated February 20, 2019 18,747 - Total finance lease liabilities 92,569 81,322 Less current portion (37,404 ) (30,172 ) Long term portion $ 55,165 $ 51,150 During the quarter ended March 31, 2019, the Company entered into a finance lease for computer equipment for a three-year term. The Company recognized this arrangement as a finance lease based on the determination that the lease exceeded 75% of the economic life of the underlying assets. The Company initially recorded the equipment and the finance lease liability at the estimated present value of the minimum lease payments of $19,754. During the year ended December 31, 2018, the Company entered into five finance leases (formerly capital leases) for computer equipment for a three-year term. The Company recognized these arrangements as finance leases based on the determination the leases exceeded 75% of the economic life of the underlying assets. The Company initially recorded the equipment and the finance lease liability at the estimated present value of the minimum lease payments of $95,506. The leases include base monthly payments in the aggregate of $3,495, due on the contract monthly anniversary of each calendar month. At the expiration of the lease, the Company is required to return all leased equipment to the lessor with right of repurchase at fair value. The Company has made payments in the amount of $9,884 during the three months ended March 31, 2019. The effective interest rate of the finance leases is estimated at 6% based on the implicit rate in the lease agreements. The following summarizes the right to use assets under finance leases included in property and equipment: March 31, December 31, 2019 2018 Classes of property Computer equipment $ 115,260 $ 95,506 Less: accumulated depreciation (25,173 ) (16,117 ) $ 90,087 $ 79,389 The following summarizes total future minimum finance lease payments at March 31, 2019: Twelve-month period ending March 31, 2020 $ 41,940 2021 41,940 2022 16,312 Total minimum lease payments 100,192 Amount representing interest 7,623 Present value of minimum lease payments 92,569 Current portion of finance lease obligations 37,404 Finance lease obligations, less current portion $ 55,165 Operating Leases The Company’s principal executive offices are located at 5210 E. Williams Circle, Suite 750, Tucson, Arizona 85711, consisting of approximately 5,151 square feet as of March 31, 2019. The Company’s principal executive office originally consisted of approximately 2,362 square feet and was leased for an aggregate amount of $4,724 per month through September 1, 2016, an aggregate amount of $5,474 per month through September 30, 2017 and an aggregate amount of $ 6,224 The Company also has offices in Atlanta, located at 3901 Roswell Road, Suite 134, leased for an aggregate of $3,937 per month as of December 31, 2017 under a lease expiring on September 30, 2019. On December 29, 2017, effective February 1, 2018, the Company amended its existing lease to expand its Georgia office from approximately 2,739 square feet to approximately 3,831 square feet. Beginning February 1, 2018, the basic rent increased by $1,500 through the remainder of the lease term. In February 2019, the Company entered into a lease for new offices in Marietta, Georgia located at 450 Franklin Gateway, Marietta, Georgia consisting of approximately 9,662 square feet. The new lease will commence, depending on substantial completion of the landlord’s development, no later than June 1, 2019. Beginning in 2017, we leased office space in New York for $300 per $3,578 per month, which continues on a month to month basis as of March 31, 2019. These two properties were considered short-term leases and therefore were not measured under Topic 842. The Company has made operating lease payments in the amount of $68,690 during the three months ended March 31, 2019. Rent expense charged to operations, which differs from rent paid due to rent credits and to increasing amounts of base rent, is calculated by allocating total rental payments on a straight-line basis over the term of the lease. Operating lease liabilities at March 31, 2019 and January 1, 2019 consist of: March 31, January 1, 2019 2019 Tucson Arizona office lease $ 490,090 $ 518,309 Atlanta Georgia office lease 33,596 49,959 Total operating lease liabilities 523,686 568,268 Less current portion (152,352 ) (166,252 ) Long term portion $ 371,334 $ 402,016 As of January 1, 2019, the Company adopted the provisions of ASC Topic 842 using the modified retrospective method. In adopting ASC Topic 842, Leases (Topic 842), the Company has elected the ‘package of practical expedients’, which permit it not to reassess under the new standard its prior conclusions about lease identification, lease classification and initial direct costs. The Company did not elect the use-of-hindsight or the practical expedient pertaining to land easements; the latter is not applicable to the Company. In addition, the Company elected not to apply ASC Topic 842 to arrangements with lease terms of 12 month or less. Effective January 1, 2019, the Company initially recognized operating lease liabilities of $568,268 based on the present value of the remaining minimum rental payments under current leasing standards for existing operating leases. The discount rate utilized in such present value calculation was 6 During the quarter ended March 31, 2019, the Company entered into an operating lease for new office space in Marietta, Georgia, for a five-year term. The following summarizes total future minimum operating lease payments at March 31, 2019: Twelve-month period ending March 31, 2020 $ 179,130 2021 148,042 2022 151,988 2023 90,837 Total minimum lease payments 569,997 Less: present value discount (46,311 ) Present value of minimum lease payments 523,686 Current portion of operating lease obligations 152,352 Operating lease obligations, less current portion $ 371,334 The following summarizes lease expenses for the three months ended March 31, 2019: Finance lease expenses: Depreciation/amortization expense $ 13,374 Interest on lease liabilities 1,343 Finance lease expense 14,717 Operating lease expense 52,548 Short-term lease expense 13,283 Total lease expenses $ 80,548

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
	Mar. 31, 2019
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 7 — RELATED PARTY TRANSACTIONS As of March 31, 2019, and December 31, 2018, the total balances of related party payable were $14,467 and $14,467, respectively, related to employee paid travel on behalf of the Company.

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	3 Months Ended
	Mar. 31, 2019
Stockholders' Equity Attributable to Parent [Abstract]
STOCKHOLDERS' EQUITY	NOTE 8 — STOCKHOLDERS’ EQUITY Preferred stock As of March 31, 2019 and December 31, 2018, the Company had 105,000 shares of Series A Convertible Preferred Stock (the “Preferred Stock”), issued at $10 per share, paying a 5% cumulative annual dividend and convertible for common stock at a price of $4.385 per share. For the three months ended March 31, 2019, preferred stockholders earned, but were not paid, $12,945 in annual dividends, or equivalent to 2,952 shares of common stock based on a conversion price of $4.385 per share. As of March 31, 2019 and December 31, 2018, cumulative and unpaid dividends were $205,685 and $192,740, respectively, or equivalent to 46,906 and 43,954 shares of common stock, respectively, based on a conversion price of $4.385 per share, respectively. On any matter presented to the stockholders of the Company, holders of Preferred Stock are entitled to cast the number of votes equal to the number of shares of common stock into which the 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 or amendments to the Certificate of Incorporation in a manner that adversely affects any rights of the Preferred Stock holders. In addition, the preferred stockholders have a liquidation preference for purposes of which the Preferred Stock would be valued at $10 per share plus accrued cumulative annual dividend. At March 31, 2019 and December 31, 2018, the liquidation preference was valued at $1,255,685 and $1,242,740, respectively. In the event of any liquidity event, holders of each share of Preferred Stock shall be entitled to be paid out of the assets of the Company legally available before any sums shall be paid to holders of common stock. Common stock As of March 31, 2019 and December 31, 2018, the Company had 7,623,227 and 7,579,995 shares of common stock issued and outstanding, respectively. In January 2019, the Company issued 20,000 shares of its common stock of the Company upon the exercise of options, for proceeds of $19,000. In January and February 2019, the Company issued 10,000 and 1,395 shares of its common stock, respectively, upon the exercise of outstanding warrants to purchase an aggregate of 11,395 shares of common stock, for aggregate proceeds of $23,450. In January and February 2019, the Company issued an aggregate of 11,837 shares of its common stock upon the cashless exercise of outstanding options and outstanding warrants to purchase 17,733 shares of common stock. Options As of March 31, 2019 and December 31, 2018, the Company had outstanding options to purchase 880,585 and 997,989 shares of common stock, respectively. 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 $ 4,705,220 Granted 28,700 10.55 5.00 - Exercised (32,687 ) 1.43 Forfeited/Expired (113,417 ) 10.28 Outstanding at March 31, 2019 880,585 $ 4.27 2.27 808,057 $ 4,785,984 On February 7, 2019, the Company granted an aggregate of 28,700 incentive stock options to employees newly hired since June 4, 2018. The options to purchase shares of common stock are exercisable at $10.55 per share, have a term of five years, and vest as to 50% of the options at the vesting commencement date, which is generally one year from the date of hire (vesting commencement dates range from June 4, 2019 through January 25, 2020), and vesting as to the remaining 50% of the options, in eight equal quarterly installments commencing on the first day of each calendar quarter following the vesting commencement date and installments continuing on the first day of each of the seven calendar quarters thereafter. All vesting is subject to the employee’s continued service through the vesting date. The exercise price was determined using the closing price of the Company’s common stock on February 7, 2019. The Black-Scholes value on the grant date of the options was $258,392. Option grants during the three months ended March 31, 2019 were valued using the Black-Scholes pricing model. Significant assumptions used in the valuation include expected term of 3.25 3.50 281.65 For the three months ended March 31, 2019 and 2018, total stock compensation expense related to the options totaled $72,274 and $145,046, respectively. The outstanding unamortized stock compensation expense related to options was $293,475 (which will be recognized through December 2021) as of March 31, 2019. Warrants Below is a table summarizing the Company’s outstanding warrants as of March 31, 2019 and December 31, 2018: Weighted Intrinsic Weighted Average Value Number of Average Remaining of Warrants Exercise Price Term Warrants Outstanding at December 31, 2018 1,781,715 $ 4.20 2.23 $ 8,930,058 Granted - Exercised (16,441 ) 2.31 Forfeited/Expired (22,266 ) 2.75 Outstanding at March 31, 2019 1,743,008 $ 4.24 2.02 $ 9,395,841 For the three months ended March 31, 2019 and 2018, the Company incurred warrant-based compensation expense of $0 and $1,393, respectively. There was no outstanding unamortized stock-based compensation expense related to warrants as of March 31, 2019. Restricted stock units (“RSUs”) The following table summarizes the restricted stock unit activity for the three months ended March 31, 2019: Restricted stock units issued as of December 31, 2018 222,514 Granted - Total Restricted stock units issued at March 31, 2019 222,514 Vested at March 31, 2019 167,007 Unvested restricted stock units as of March 31, 2019 55,507 For the three months ended March 31, 2019 and 2018, the Company incurred RSU-based compensation expense of $376,626 and $220,864, respectively. The outstanding unamortized stock-based compensation expense related to RSUs was $111,596 (which will be recognized through April 2019) as of March 31, 2019.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 9 — COMMITMENTS AND CONTINGENCIES 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, our 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.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2019
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 10 — SUBSEQUENT EVENTS In April 2019, the Company issued 17,120 shares of common stock of the Company upon the exercise of warrants, for aggregate proceeds of $82,292. In April 2019, the Company issued an aggregate of 1,990 shares of common stock upon the cashless exercise of outstanding options and outstanding warrants to purchase an aggregate of 6,400 shares of common stock.

ORGANIZATION AND BASIS OF PRE_2

ORGANIZATION AND BASIS OF PRESENTATION (Policies)	3 Months Ended
	Mar. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Accounting, Policy [Policy Text Block]	Corporate Information and Background AudioEye, Inc. (“we”, “our”, the “Company”) was incorporated on May 20, 2005 in the state of Delaware. The Company has developed patented, Internet content publication and distribution software that enables conversion of any media 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. The Company is focused on developing innovations in the field of networked and device embedded audio technology. The Company owns a unique patent portfolio comprised of six issued patents in the United States, a notice of allowance from the U.S. Patent and Trademark Office for a seventh patent, and two U.S. patents pending with additional patents being drafted for filing with the U.S. Patent and Trademark Office and internationally. Our common stock has been listed on the NASDAQ Capital Market under the symbol “AEYE” since September 4, 2018. Prior to September 4, 2018, our common stock was quoted on the OTCQB and the OTC Bulletin Board beginning on April 15, 2013 under the same symbol. In August 2018, the Company sold 1,000,000 shares (the “Shares”) of its common stock at $6.25 per share for net proceeds of $5,609,215, after costs and expenses of $640,785 (the “Private Placement”). At the closing of the Private Placement, the Company entered into a registration rights agreement (the “Registration Rights Agreement”) with the investors pursuant to which the Company agreed to register the Shares for resale. On September 4, 2018, the Company filed a registration statement on Form S-1 covering the resale of the securities subject to the Registration Rights Agreement. On August 1, 2018, the Company amended its Certificate of Incorporation to implement a reverse stock split in the ratio of 1 share for every 25 shares
Revenue Recognition, Policy [Policy Text Block]	Revenue Recognition Revenue is recognized when delivery of the promised goods or services is transferred to the Company’s customers, in an amount that reflects the consideration that the Company expects to be entitled to 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. Certain Software as a Service (“SaaS”) invoices are prepared on an annual basis. Any funds received for services not provided yet are held in deferred revenue and are recorded as revenue when earned. Subscription 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. Payments received in advance of services being rendered are recorded as deferred revenue. Any funds received for services not provided yet are held in deferred revenue and are recorded as revenue when earned. We generate substantially all our revenue from subscription services, which are comprised of subscription fees from customers on the Ally Platform. The following table presents our revenues disaggregated by type of good or service and sales channel: Three months ended March 31, 2019 2018 Subscription revenue and support – Direct $ 1,460,624 $ 945,637 Subscription revenue and support – Indirect (Strategic partners) 525,054 203,705 Total revenues $ 1,985,678 $ 1,149,342 There were significant changes in contract liabilities balances during the quarter ended March 31, 2019. The table below summarizes the activity within the deferred revenue accounts during the quarter ended March 31, 2019: December 31, Cash Revenue March 31, 2018 Received recognized 2019 Deferred revenue $ 3,028,787 $ 1,271,112 $ 1,414,835 $ 2,885,064 As of March 31, 2019, $2,574,097 was classified as short term deferred revenue and is expected to be recognized over the next twelve months following March 31, 2019. The remaining $310,967 is long-term deferred revenue to be recognized thereafter. At March 31, 2019, the Company had one customer representing 23% of the outstanding accounts receivable. At December 31, 2018, the Company had one customer representing 22% of the outstanding accounts receivable. The Company had one major customer (including such customer’s affiliates) which generated approximately 12% and 13% of the Company’s revenue in the three months ended March 31, 2019 and 2018, respectively.
Use of Estimates, Policy [Policy Text Block]	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include the fair value of the Company’s stock, stock-based compensation and the valuation allowance related to deferred tax assets. Actual results may differ from these estimates.
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]	Stock-Based Compensation The Company measures the cost of services received in exchange for an award of equity instruments based on the fair value of the award. For employees and directors, the fair value of the award is measured on the grant date and for non-employees the fair value of the award is generally re-measured on vesting dates and interim financial reporting dates until the service period is complete. The fair value amount is then recognized over the period during which services are required to be provided in exchange for the award, usually the vesting period. Stock-based compensation expense is recorded by the Company in the same expense classifications in the consolidated statements of operations, as if such amounts were paid in cash.
Earnings Per Share, Policy [Policy Text Block]	Earnings (Loss) Per Share Basic earnings (loss) per share 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 earnings per share” reflects the potential dilution that could occur if our share-based awards and convertible securities were exercised or converted into common stock. The dilutive effect of our share-based awards is computed using the treasury stock method, which assumes all share-based awards 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. Potentially dilutive securities excluded from the computation of basic and diluted net earnings (loss) per share for the three months ended March 31, 2019 and 2018 are as follows: 2019 2018 Preferred stock 286,359 287,453 Options to purchase common stock 880,585 1,058,200 Warrants to purchase common stock 1,743,008 1,767,786 Restricted stock units 222,514 156,340 Totals 3,132,466 3,269,779
Fair Value Measurement, Policy [Policy Text Block]	Fair Value Measurements 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 generally accepted accounting principles 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 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 Company has no liabilities measured at fair value on a recurring basis as of March 31, 2019 and December 31, 2018. The following are the Company’s assets measured at fair value on a recurring basis as of March 31, 2019 and December 31, 2018: Fair Value Fair Value Hierarchy Assets Marketable securities, March 31, 2019 $ 492 Level 1 Marketable securities, December 31, 2018 $ 510 Level 1
Lessee, Leases [Policy Text Block]	Leases In February 2016, the Financial Accounting Standards Board (“FASB”) established ASC Topic 842, Leases (Topic 842), by issuing ASU No. 2016-02, which requires lessees to recognize leases on the balance sheet and disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842; ASU No. 2018-10, Codification Improvements to Topic 842, Leases; and ASU No. 2018-11, Targeted Improvements. The new standard establishes a right-of-use (ROU) model that requires a lessee to recognize an ROU asset and lease liability on the balance sheet. Leases are classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the statement of operations. The Company adopted the new standard on January 1, 2019 using the modified-retrospective method, with an effective date or application date of January 1, 2019 and thus did not adjust comparative periods. The new standard provides a number of optional practical expedients in transition. The Company has elected the “package of practical expedients”, which permits it not to reassess under the new standard its prior conclusions about lease identification, lease classification and initial direct costs. The Company did not elect the use-of-hindsight practical expedient. The new standard had a material effect on the Company’s financial statements. The most significant effects of adoption relate to (1) the recognition of new ROU assets and lease liabilities on the Company’s balance sheet for real estate operating leases; and (2) providing significant new disclosures about the Company’s leasing activities. As of January 1, 2019, the Company recognized additional operating lease liabilities of $568,268 based on the present value of the remaining minimum rental payments under current leasing standards for existing operating leases. The Company recognized corresponding ROU assets of $557,212. In February 2019, the Company entered into a new lease in Marietta, Georgia, which will be recognized on the balance sheet upon lease commencement expected to be in June 2019. The new standard also provides practical expedients for an entity’s ongoing accounting. The Company elected the short-term lease recognition exemption for all leases that qualify. This means, for those leases that qualify, the Company does not recognize ROU assets or lease liabilities, and this includes not recognizing ROU assets or lease liabilities for existing short-term leases of those assets in transition. The Company expects changes to its disclosed lease recognition policies and practices, as well as to other related financial statement disclosures due to the adoption of this standard. See Note 6 for these revised disclosures for the first quarter of 2019.
New Accounting Pronouncements, Policy [Policy Text Block]	Recent Accounting Pronouncements In June 2018, the FASB issued ASU 2018-07, regarding ASC Topic 718 Compensation - Stock Compensation , which largely aligns the accounting for share-based compensation for non-employees with the accounting for share-based compensation for employees. The guidance is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period. The adoption of this standard did not have a material effect on our consolidated financial statements. There are various other updates recently issued, most of which represented technical corrections to the accounting literature or application to specific industries and are not expected to a have a material impact on the Company's financial position, results of operations or cash flows.

ORGANIZATION AND BASIS OF PRE_3

ORGANIZATION AND BASIS OF PRESENTATION (Tables)	3 Months Ended
	Mar. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Disaggregation of Revenue [Table Text Block]	The following table presents our revenues disaggregated by type of good or service and sales channel: Three months ended March 31, 2019 2018 Subscription revenue and support – Direct $ 1,460,624 $ 945,637 Subscription revenue and support – Indirect (Strategic partners) 525,054 203,705 Total revenues $ 1,985,678 $ 1,149,342
Deferred Revenue, by Arrangement, Disclosure [Table Text Block]	There were significant changes in contract liabilities balances during the quarter ended March 31, 2019. The table below summarizes the activity within the deferred revenue accounts during the quarter ended March 31, 2019: December 31, Cash Revenue March 31, 2018 Received recognized 2019 Deferred revenue $ 3,028,787 $ 1,271,112 $ 1,414,835 $ 2,885,064
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]	Potentially dilutive securities excluded from the computation of basic and diluted net earnings (loss) per share for the three months ended March 31, 2019 and 2018 are as follows: 2019 2018 Preferred stock 286,359 287,453 Options to purchase common stock 880,585 1,058,200 Warrants to purchase common stock 1,743,008 1,767,786 Restricted stock units 222,514 156,340 Totals 3,132,466 3,269,779
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]	The following are the Company’s assets measured at fair value on a recurring basis as of March 31, 2019 and December 31, 2018: Fair Value Fair Value Hierarchy Assets Marketable securities, March 31, 2019 $ 492 Level 1 Marketable securities, December 31, 2018 $ 510 Level 1

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	3 Months Ended
	Mar. 31, 2019
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment [Table Text Block]	Property and equipment as of March 31, 2019 and December 31, 2018 is summarized as follows: March 31, 2019 December 31, 2018 Computer equipment $ 62,170 $ 62,170 Equipment under finance lease 115,260 95,506 Furniture and fixtures 4,968 4,968 Total 182,398 162,644 Less accumulated depreciation (68,011 ) (54,637 ) Property and equipment, net $ 114,387 $ 108,007

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	3 Months Ended
	Mar. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Finite-Lived Intangible Assets [Table Text Block]	Intangible assets consisted of the following: March 31, 2019 December 31, 2018 Patents $ 3,697,709 $ 3,697,709 Capitalized software development 1,470,543 1,410,259 Domain name 10,000 10,000 Accumulated amortization (3,216,465 ) (3,056,564 ) Intangible assets, net $ 1,961,787 $ 2,061,404

DEFERRED COSTS (Tables)

DEFERRED COSTS (Tables)	3 Months Ended
	Mar. 31, 2019
Deferred Policy Acquisition Costs Disclosures [Abstract]
Deferred Policy Acquisition Costs [Table Text Block]	The table below summarizes the activity within the deferred commission costs account, during the three months ended March 31, 2019: December 31, Commission Commission March 31, 2018 Costs Deferred Amortized 2019 Deferred costs, short term $ 176,006 $ 54,174 $ (51,399 ) $ 178,781 Deferred costs, long term 93,790 11,295 - 105,085 Deferred commission costs $ 269,796 $ 65,469 $ (51,399 ) $ 283,866

LEASE LIABILITIES AND RIGHT O_2

LEASE LIABILITIES AND RIGHT OF USE ASSETS (Tables)	3 Months Ended
	Mar. 31, 2019
Leases, Capital [Abstract]
Schedule of Capital Lease Obligations [Table Text Block]	March 31, December 31, 2019 2018 Finance equipment lease dated April 5, 2018 $ 11,743 $ 13,056 Finance equipment lease dated May 8, 2018 13,064 14,525 Finance equipment lease dated June 27, 2018 19,674 21,701 Finance equipment lease dated September 18, 2018 14,029 15,368 Finance equipment lease dated September 28, 2018 15,312 16,672 Finance equipment lease dated February 20, 2019 18,747 - Total finance lease liabilities 92,569 81,322 Less current portion (37,404 ) (30,172 ) Long term portion $ 55,165 $ 51,150
Schedule of Capital Leased Assets [Table Text Block]	The following summarizes the right to use assets under finance leases included in property and equipment: March 31, December 31, 2019 2018 Classes of property Computer equipment $ 115,260 $ 95,506 Less: accumulated depreciation (25,173 ) (16,117 ) $ 90,087 $ 79,389
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block]	The following summarizes total future minimum finance lease payments at March 31, 2019: Twelve-month period ending March 31, 2020 $ 41,940 2021 41,940 2022 16,312 Total minimum lease payments 100,192 Amount representing interest 7,623 Present value of minimum lease payments 92,569 Current portion of finance lease obligations 37,404 Finance lease obligations, less current portion $ 55,165
Schedule Of Allocation Of Total Rental Payments [Table Text Block]	Operating lease liabilities at March 31, 2019 and January 1, 2019 consist of: March 31, January 1, 2019 2019 Tucson Arizona office lease $ 490,090 $ 518,309 Atlanta Georgia office lease 33,596 49,959 Total operating lease liabilities 523,686 568,268 Less current portion (152,352 ) (166,252 ) Long term portion $ 371,334 $ 402,016
Schedule Of Future Minimum Lease Payments For Operating Leases [Table Text Block]	Twelve-month period ending March 31, 2020 $ 179,130 2021 148,042 2022 151,988 2023 90,837 Total minimum lease payments 569,997 Less: present value discount (46,311 ) Present value of minimum lease payments 523,686 Current portion of operating lease obligations 152,352 Operating lease obligations, less current portion $ 371,334
Schedule Of Lease Expense [Table Text Block]	The following summarizes lease expenses for the three months ended March 31, 2019: Finance lease expenses: Depreciation/amortization expense $ 13,374 Interest on lease liabilities 1,343 Finance lease expense 14,717 Operating lease expense 52,548 Short-term lease expense 13,283 Total lease expenses $ 80,548

STOCKHOLDERS' EQUITY (Tables)

STOCKHOLDERS' EQUITY (Tables)	3 Months Ended
	Mar. 31, 2019
Stockholders' Equity Attributable to Parent [Abstract]
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]	As of March 31, 2019 and December 31, 2018, the Company had outstanding options to purchase 880,585 and 997,989 shares of common stock, respectively. 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 $ 4,705,220 Granted 28,700 10.55 5.00 - Exercised (32,687 ) 1.43 Forfeited/Expired (113,417 ) 10.28 Outstanding at March 31, 2019 880,585 $ 4.27 2.27 808,057 $ 4,785,984
Schedule of Other Share-based Compensation, Activity [Table Text Block]	Below is a table summarizing the Company’s outstanding warrants as of March 31, 2019 and December 31, 2018: Weighted Intrinsic Weighted Average Value Number of Average Remaining of Warrants Exercise Price Term Warrants Outstanding at December 31, 2018 1,781,715 $ 4.20 2.23 $ 8,930,058 Granted - Exercised (16,441 ) 2.31 Forfeited/Expired (22,266 ) 2.75 Outstanding at March 31, 2019 1,743,008 $ 4.24 2.02 $ 9,395,841
Nonvested Restricted Stock Shares Activity [Table Text Block]	The following table summarizes the restricted stock unit activity for the three months ended March 31, 2019: Restricted stock units issued as of December 31, 2018 222,514 Granted - Total Restricted stock units issued at March 31, 2019 222,514 Vested at March 31, 2019 167,007 Unvested restricted stock units as of March 31, 2019 55,507

ORGANIZATION AND BASIS OF PRE_4

ORGANIZATION AND BASIS OF PRESENTATION (Details) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Subscription revenue and support – Direct	$ 1,460,624	$ 945,637
Subscription revenue and support – Indirect (Strategic partners)	525,054	203,705
Total revenues	$ 1,985,678	$ 1,149,342

ORGANIZATION AND BASIS OF PRE_5

ORGANIZATION AND BASIS OF PRESENTATION (Details 1)	3 Months Ended
	Mar. 31, 2019USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Deferred revenue	$ 3,028,787
Cash received	1,271,112
Revenue recognized	1,414,835
Deferred revenue	$ 2,885,064

ORGANIZATION AND BASIS OF PRE_6

ORGANIZATION AND BASIS OF PRESENTATION (Details2) - shares	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	3,132,466	3,269,779
Antidilutive Securities preferred Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	286,359	287,453
Employee Stock Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	880,585	1,058,200
Warrant [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	1,743,008	1,767,786
Restricted Stock Units (RSUs) [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	222,514	156,340

ORGANIZATION AND BASIS OF PRE_7

ORGANIZATION AND BASIS OF PRESENTATION (Details 3) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities held in related party	$ 492	$ 510
Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities held in related party	$ 492
Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities held in related party		$ 510

ORGANIZATION AND BASIS OF PRE_8

ORGANIZATION AND BASIS OF PRESENTATION (Details Textual) - USD ($)	1 Months Ended		3 Months Ended		12 Months Ended
	Aug. 31, 2018	Aug. 01, 2018	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018	Jan. 01, 2019
Organization Consolidation And Presentation Of Financial Statements Line Items [Line Items]
Stock Issued During Period, Shares, New Issues	1,000,000
Shares Issued, Price Per Share	$ 6.25
Proceeds from Issuance of Common Stock	$ 5,609,215
Payments of Stock Issuance Costs	$ 640,785
Stockholders' Equity Note, Stock Split		1 share for every 25 shares
Common Stock, Shares Authorized		50,000,000	50,000,000		50,000,000
Conversion of Stock, Shares Converted		186,994,384
Conversion of Stock, Shares Issued		7,479,775
Deferred Revenue, Current			$ 2,574,097		$ 2,626,712
Deferred Revenue, Noncurrent			310,967		402,075
Operating Lease Liability			523,686			$ 568,268
Operating Lease, Right-of-Use Asset			$ 512,966		$ 0	$ 557,212
Sales Revenue, Net [Member] | Customer Concentration Risk [Member]
Organization Consolidation And Presentation Of Financial Statements Line Items [Line Items]
Concentration Risk, Percentage			12.00%	13.00%
Accounts Receivable [Member] | Major Customer Number Two [Member]
Organization Consolidation And Presentation Of Financial Statements Line Items [Line Items]
Concentration Risk, Percentage					22.00%
Accounts Receivable [Member] | Customer Concentration Risk [Member]
Organization Consolidation And Presentation Of Financial Statements Line Items [Line Items]
Concentration Risk, Percentage			23.00%
Previously Reported [Member]
Organization Consolidation And Presentation Of Financial Statements Line Items [Line Items]
Common Stock, Shares Authorized		250,000,000

MANAGEMENT'S LIQUIDITY PLANS (D

MANAGEMENT'S LIQUIDITY PLANS (Details Textual) - USD ($)	1 Months Ended			3 Months Ended
	Oct. 31, 2018	Sep. 30, 2018	Aug. 31, 2018	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Going Concern And Management Liquidity Plans [Line Items]
Working Capital Deficit				$ 1,567,539
Cash				4,089,717		$ 5,741,549
Net Cash Provided by (Used in) Operating Activities				(1,625,491)	$ (596,715)
Stock Issued During Period, Shares, New Issues			1,000,000
Payments of Stock Issuance Costs			$ 640,785
Shares Issued, Price Per Share			$ 6.25
Proceeds from Issuance of Common Stock			$ 5,609,215
Payments of Costs Related to Common Stock Subscriptions	$ 124,975
Convertible Notes Payable [Member]
Going Concern And Management Liquidity Plans [Line Items]
Net Cash Provided by (Used in) Operating Activities				$ 1,625,491
Proceeds from Common Stock Subscriptions		$ 100,000

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Property, Plant and Equipment [Line Items]
Property plant and equipment gross	$ 182,398	$ 162,644
Less accumulated depreciation	(68,011)	(54,637)
Property and equipment, net	114,387	108,007
Computer Equipment [Member]
Property, Plant and Equipment [Line Items]
Property plant and equipment gross	62,170	62,170
Equipment under capital lease [Member]
Property, Plant and Equipment [Line Items]
Property plant and equipment gross	115,260	95,506
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property plant and equipment gross	$ 4,968	$ 4,968

PROPERTY AND EQUIPMENT (Detai_2

PROPERTY AND EQUIPMENT (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Property, Plant and Equipment [Line Items]
Depreciation	$ 13,374	$ 4,317
Payments to Acquire Property, Plant, and Equipment	$ 0	10,893
Property, Plant and Equipment, Estimated Useful Lives	3 years
Property, Plant and Equipment, Gross	$ 182,398		$ 162,644
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	68,011		54,637
Noncash or Part Noncash Acquisition, Fixed Assets Acquired	19,754	$ 0
Assets Held under Capital Leases [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	115,260		95,506
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	$ 25,173		$ 16,117

INTANGIBLE ASSETS (Details)

INTANGIBLE ASSETS (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Intangible Assets
Accumulated amortization	$ (3,216,465)	$ (3,056,564)
Intangible assets, net	1,961,787	2,061,404
Patents [Member]
Intangible Assets
Finite-Lived Intangible Assets, Gross	3,697,709	3,697,709
Capitalized software development [Member]
Intangible Assets
Finite-Lived Intangible Assets, Gross	1,470,543	1,410,259
Domain Name [Member]
Intangible Assets
Finite-Lived Intangible Assets, Gross	$ 10,000	$ 10,000

INTANGIBLE ASSETS (Details Text

INTANGIBLE ASSETS (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Software Development [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	$ 159,901	$ 123,348
Amortization of Intangible Assets	66,243	36,322
Finite-lived Intangible Assets Acquired	60,284	75,825
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	3,697,709		$ 3,697,709
Amortization of Intangible Assets	$ 93,658	$ 87,026

DEFERRED COSTS (Details)

DEFERRED COSTS (Details)	3 Months Ended
	Mar. 31, 2019USD ($)
Deferred costs, short term - Beginning balance	$ 176,006
Deferred costs, long term - Beginning balance	93,790
Deferred costs, short term - End balance	178,781
Deferred costs, long term - End balance	105,085
Accounting Standards Update 2014-09 [Member]
Deferred costs, long term - Beginning balance	93,790
Deferred commission costs - Beginning balance	269,796
Commission Costs Deferred, short term	54,174
Commission Costs Deferred, long term	11,295
Commission Costs Deferred	65,469
Commission Amortized, Short term	(51,399)
Commission Amortized, Long term	0
Commission Amortized	(51,399)
Deferred costs, short term - End balance	178,781
Deferred costs, long term - End balance	105,085
Deferred commission costs - End balance	$ 283,866

DEFERRED COSTS (Details Textual

DEFERRED COSTS (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2017
Increase (Decrease) in Deferred Charges	$ 65,469	$ 30,327
Amortization of Deferred Charges	51,399	9,974
Accounting Standards Update 2014-09 [Member]
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets	$ 0	$ 80,153	$ 80,153

LEASE LIABILITIES AND RIGHT O_3

LEASE LIABILITIES AND RIGHT OF USE ASSETS (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Total finance lease liabilities	$ 92,569	$ 81,322
Less current portion	(37,404)	(30,172)
Long term portion	55,165	51,150
Finance equipment lease dated April 5, 2018 [Member]
Total finance lease liabilities	11,743	13,056
Finance equipment lease dated May 8, 2018 [Member]
Total finance lease liabilities	13,064	14,525
Finance equipment lease dated June 27, 2018 [Member]
Total finance lease liabilities	19,674	21,701
Finance equipment lease dated September 18, 2018 [Member]
Total finance lease liabilities	14,029	15,368
Finance equipment lease dated September 28, 2018 [Member]
Total finance lease liabilities	15,312	16,672
Finance equipment lease dated February 20, 2019 [Member]
Total finance lease liabilities	$ 18,747	$ 0

LEASE LIABILITIES AND RIGHT O_4

LEASE LIABILITIES AND RIGHT OF USE ASSETS (Details 1) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Classes of property
Computer equipment	$ 19,754	$ 95,506
Computer Equipment [Member]
Classes of property
Computer equipment	115,260	95,506
Less: accumulated depreciation	(25,173)	(16,117)
Capital Leases, Balance Sheet, Assets by Major Class, Net	$ 90,087	$ 79,389

LEASE LIABILITIES AND RIGHT O_5

LEASE LIABILITIES AND RIGHT OF USE ASSETS (Details 2) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
2020	$ 41,940
2021	41,940
2022	16,312
Total minimum lease payments	100,192
Present value of minimum lease payments	7,623
Present value of minimum lease payments	92,569
Current portion of capital lease obligations	37,404	$ 30,172
Finance lease obligations, less current portion	$ 55,165	$ 51,150

LEASE LIABILITIES AND RIGHT O_6

LEASE LIABILITIES AND RIGHT OF USE ASSETS (Details 3) - USD ($)	Mar. 31, 2019	Jan. 01, 2019	Sep. 30, 2018	Dec. 31, 2018
Operating Leases, Rent Expense		$ 1,500	$ 300
Total operating lease liabilities	$ 523,686	568,268
Less current portion	(152,352)	(166,252)		$ 0
Long term portion	371,334	402,016		$ 0
Tucson Arizona office lease [Member]
Operating Leases, Rent Expense	490,090	518,309
Atlanta georgia [Member]
Operating Leases, Rent Expense	$ 33,596	$ 49,959

LEASE LIABILITIES AND RIGHT O_7

LEASE LIABILITIES AND RIGHT OF USE ASSETS (Details 4) - USD ($)	Mar. 31, 2019	Jan. 01, 2019	Dec. 31, 2018
2020	$ 179,130
2021	148,042
2022	151,988
2023	90,837
Total minimum lease payments	569,997
Less: present value discount	(46,311)
Present value of minimum lease payments	523,686	$ 568,268
Current portion of operating lease obligations	152,352	166,252	$ 0
Operating lease obligations, less current portion	$ 371,334	$ 402,016	$ 0

LEASE LIABILITIES AND RIGHT O_8

LEASE LIABILITIES AND RIGHT OF USE ASSETS (Details 5)	3 Months Ended
	Mar. 31, 2019USD ($)
Finance lease expenses:
Depreciation/amortization expense	$ 13,374
Interest on lease liabilities	1,343
Finance lease expense	14,717
Operating lease expense	52,548
Short-term lease expense	13,283
Total lease expenses	$ 80,548

LEASE LIABILITIES AND RIGHT O_9

LEASE LIABILITIES AND RIGHT OF USE ASSETS (Details Textual)	Oct. 31, 2022USD ($)	Mar. 31, 2019USD ($)ft²	Jan. 01, 2019USD ($)	Feb. 01, 2018USD ($)ft²	Dec. 31, 2017USD ($)	Jan. 31, 2018USD ($)	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)	Mar. 31, 2019USD ($)ft²	Dec. 31, 2018USD ($)	Sep. 30, 2018USD ($)	Dec. 01, 2018ft²
Lessee Capital Lease Term of Contract									3 years	3 years
Capital Leased Assets, Gross		$ 19,754							$ 19,754	$ 95,506
Interest Expense, Lessee, Assets under Capital Lease									$ 3,495
Debt Instrument, Interest Rate, Effective Percentage		6.00%							6.00%
Finance Lease, Principal Payments									$ 9,884
Operating Lease, Payments			$ 568,268						68,690
Operating Lease, Right-of-Use Asset		$ 512,966	557,212						512,966	0
Deferred Rent Credit, Noncurrent		$ 0	11,056						$ 0	$ 6,585
Percentage of finance lease exceeding									75.00%
Area of Land | ft²		5,151		4,248					5,151			5,151
Operating Leases Rent Expense Net		$ 3,578			$ 3,937	$ 6,224	$ 5,474	$ 4,724
Increase Lease And Rental Expense	$ 12,977	$ 850	11,810	$ 9,598
Operating Leases, Rent Expense			$ 1,500								$ 300
Lessee, Operating Lease, Discount Rate			6.00%
Arizona [Member]
Area of Land | ft²		2,362							2,362
Georgia [Member] | Minimum [Member]
Area of Land | ft²				2,739
Georgia [Member] | Maximum [Member]
Area of Land | ft²				3,831

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details Textual) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Due to Related Parties	$ 14,467	$ 14,467

STOCKHOLDERS' EQUITY (Details)

STOCKHOLDERS' EQUITY (Details) - USD ($)	Feb. 07, 2019	Jan. 31, 2019	Feb. 28, 2019	Mar. 31, 2019	Dec. 31, 2018
Number of Options
Outstanding at beginning of the period (in shares)		997,989	997,989	997,989
Granted (in shares)	28,700			258,392
Exercised (shares)		(20,000)	(11,837)
Outstanding at the end of the period (in shares)				880,585	997,989
Employee Stock Option
Number of Options
Outstanding at beginning of the period (in shares)		997,989	997,989	997,989
Granted (in shares)				28,700
Exercised (shares)				(32,687)
Forfeited/Expired				(113,417)
Outstanding at the end of the period (in shares)				880,585	997,989
Exercisable (in shares)				808,057	925,545
Wtd Avg. Exercise Price
Outstanding at beginning of the period (in dollars per share)		$ 4.67	$ 4.67	$ 4.67
Granted (in dollars per share)				10.55
Exercised (in dollars per share)				1.43
Forfeited/Expired				10.28
Outstanding at end of the period (in dollars per share)				$ 4.27	$ 4.67
Wtd Avg. Remaining Term
Granted Weighted Average Remaining Term				5 years
Outstanding, Wtd Average Remaining Term				2 years 3 months 7 days	2 years 1 month 20 days
Intrinsic Value of Options
Granted, Intrinsic Value of Exercisable Options				$ 0
Outstanding, Intrinsic Value (in dollars)				$ 4,785,984	$ 4,705,220

STOCKHOLDERS' EQUITY (Details

STOCKHOLDERS' EQUITY (Details 1) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2016	Dec. 31, 2017
Wtd Avg. Exercise Price
Oustanding (in dollars per share)		$ 4.24
Wtd Avg. Remaining Term
Oustanding		2 years 7 days	2 years 2 months 23 days
Warrant
Number of warrants
Number of shares, Beginning		1,781,715
Number of shares, granted	0
Number of shares, exercised		(16,441)
Number of shares, Forfeited	(22,266)
Number of shares, Ending		1,743,008
Wtd Avg. Exercise Price
Oustanding (in dollars per share)		$ 4.20
Exercised (in dollars per share)		$ 2.31
Forfeited (in dollars per share)	$ 2.75
Intrinsic Value of Warrants
Outstanding			$ 8,930,058	$ 9,395,841

STOCKHOLDERS' EQUITY (Detail_2

STOCKHOLDERS' EQUITY (Details 2) - Restricted Stock Units (RSUs) [Member] - shares	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Restricted stock units issued as of December 31, 2018		222,514
Granted		0
Total Restricted stock units issued at March 31, 2019		222,514
Vested at March 31, 2019	167,007
Unvested restricted stock units as of March 31, 2019	55,507

STOCKHOLDERS' EQUITY (Details T

STOCKHOLDERS' EQUITY (Details Textual) - USD ($)	Feb. 07, 2019	Feb. 28, 2019	Jan. 31, 2019	Feb. 28, 2019	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Class of Stock [Line Items]
Common Stock, Shares, Issued					7,623,227		7,579,995
Common Stock, Shares, Outstanding					7,623,227		7,579,995
Granted (in shares)	28,700				258,392
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights	The options to purchase shares of common stock are exercisable at $10.55 per share, have a term of five years, and vest as to 50% of the options at the vesting commencement date, which is generally one year from the date of hire (vesting commencement dates range from June 4, 2019 through January 25, 2020), and vesting as to the remaining 50% of the options, in eight equal quarterly installments commencing on the first day of each calendar quarter following the vesting commencement date and installments continuing on the first day of each of the seven calendar quarters thereafter. All vesting is subject to the employee’s continued service through the vesting date. The exercise price was determined using the closing price of the Company’s common stock on February 7, 2019.
Restricted Stock or Unit Expense					$ 376,626	$ 220,864
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options					$ 111,596
Class of Warrant or Right, Number of Securities Called by Warrants or Rights		17,733		17,733
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period			20,000	11,837
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number					880,585		997,989
Stock Issued During Period Shares Stock Warrants Exercised		1,395	10,000	11,395
Proceeds from Warrant Exercises				$ 23,450
Preferred Stock, Liquidation Preference, Value					$ 1,255,685		$ 1,242,740
Preferred Stock, Liquidation Preference Per Share					$ 10
Proceeds from Stock Options Exercised			$ 19,000		$ 42,450	0
Employee Stock Option [Member]
Class of Stock [Line Items]
Expected dividend yield (as a percent)					0.00%
Allocated Share-based Compensation Expense					$ 72,274	145,046
Deferred Compensation Liability, Current and Noncurrent					293,475
Warrant [Member]
Class of Stock [Line Items]
Allocated Share-based Compensation Expense					$ 0	$ 1,393
Maximum | Employee Stock Option [Member]
Class of Stock [Line Items]
Expected term					3 years 6 months
Expected volatility (as a percent)					292.28%
Risk-free interest rate (as a percent)					2.48%
Minimum | Employee Stock Option [Member]
Class of Stock [Line Items]
Expected term					3 years 3 months
Expected volatility (as a percent)					281.65%
Risk-free interest rate (as a percent)					2.46%
Series A Preferred Stock [Member]
Class of Stock [Line Items]
Redemption Price (in dollars per share)					$ 4.385		$ 4.385
Preferred Stock, Dividend Rate, Percentage					5.00%
Dividends, Preferred Stock, Stock					$ 12,945
Common Stock Dividends, Shares					2,952
Preferred stock unpaid dividend equivalent common stock, Shares					46,906		43,954
Dividends Payable					$ 205,685		$ 192,740
Preferred Stock, Shares Issued					105,000		105,000
Preferred Stock Issue Per Share					$ 10

SUBSEQUENT EVENTS (Details Text

SUBSEQUENT EVENTS (Details Textual) - USD ($)	1 Months Ended			2 Months Ended	3 Months Ended
	Apr. 30, 2019	Feb. 28, 2019	Jan. 31, 2019	Feb. 28, 2019	Mar. 31, 2019	Mar. 31, 2018
Subsequent Event [Line Items]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights		17,733		17,733
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period			20,000	11,837
Proceeds from Stock Options Exercised			$ 19,000		$ 42,450	$ 0
Stock Issued During Period Shares Stock Warrants Exercised		1,395	10,000	11,395
Subsequent Event
Subsequent Event [Line Items]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights	6,400
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	17,120
Proceeds from Stock Options Exercised	$ 82,292
Stock Issued During Period Shares Stock Warrants Exercised	1,990