Mobivity (MFON) 10-Q 14 Aug 19 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2019	Aug. 14, 2019
Document And Entity Information [Abstract]
Entity Registrant Name	MOBIVITY HOLDINGS CORP.
Entity Central Index Key	0001447380
Document Type	10-Q
Document Period End Date	Jun. 30, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Shell Company	false
Entity Interactive Data Current	Yes
Entity Common Stock, Shares Outstanding		47,148,053
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2019
Entity File Number	000-53851
Tax Identification Number (TIN)	26-3439095
Entity Incorporation, State Country Code	NV
Entity Address, Address Line One	55 North Arizona Place
Entity Address, Address Line Two	#310 Chandler
Entity Address, State or Province	AZ
Entity Address, Postal Zip Code	85225
City Area Code	877
Local Phone Number	282-7660

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Current assets
Cash	$ 154,825	$ 554,255
Accounts receivable, net of allowance for doubtful accounts of $48,038 and $10,104, respectively	427,801	601,658
Contracts receivable, current	791,724	578,869
Other current assets	797,371	736,309
Total current assets	2,171,721	2,471,091
Goodwill	537,550	537,550
Operating lease assets	421,032	0
Intangible assets, net	1,741,092	1,781,448
Contracts receivable, long term	1,512,445	2,113,823
Other assets	266,777	527,146
TOTAL ASSETS	6,650,617	7,431,058
Current liabilities
Accounts payable	2,729,110	1,731,628
Accrued interest	96,033	9,167
Accrued and deferred personnel compensation	223,573	350,311
Deferred revenue and customer deposits	1,183,311	1,956,938
Related party notes payable, net - current maturities	127,954	131,392
Notes payable, net - current maturities	721,577	1,148,198
Other current liabilities	729,596	723,636
Total current liabilities	5,811,154	6,051,270
Non-current liabilities
Related party notes payable, net - long term	2,500,000	0
Notes payable, net - long term	667,059	194,328
Other long term liabilities	1,100,091	860,500
Total non-current liabilities	4,267,150	1,054,828
Total liabilities	10,078,304	7,106,098
Stockholders' equity
Common stock, $0.001 par value; 100,000,000 shares authorized; 45,998,053 and 45,998,053, shares issued and outstanding	45,998	45,998
Equity payable	100,862	100,862
Additional paid-in capital	88,685,027	88,008,473
Accumulated other comprehensive loss	(12,795)	4,759
Accumulated deficit	(92,246,779)	(87,835,132)
Total stockholders' equity	(3,427,687)	324,960
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 6,650,617	$ 7,431,058

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 48,038	$ 10,104
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	45,998,053	45,998,053
Common stock, shares outstanding	45,998,053	45,998,053

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenues
Revenues	$ 2,434,841	$ 1,366,239	$ 4,851,436	$ 5,059,567
Cost of revenues	1,626,823	756,130	2,798,649	1,549,519
Gross profit	808,018	610,109	2,052,787	3,510,048
Operating expenses
General and administrative	1,581,266	770,591	2,726,502	2,018,934
Sales and marketing	802,050	792,263	1,559,192	2,253,843
Engineering, research, and development	761,320	422,660	1,739,428	1,954,258
Goodwill impairment	0	0	0	0
Depreciation and amortization	148,391	98,728	307,481	195,698
Total operating expenses	3,293,027	2,084,242	6,332,603	6,422,733
Income (loss) from operations	(2,485,009)	(1,474,133)	(4,279,816)	(2,912,685)
Other income/(expense)
Interest income	0	146	17	602
Interest expense	(89,855)	(109,635)	(130,992)	(167,124)
Gain on sale of fixed assets	0	0	0	(8,722)
Foreign currency (loss) gain	(35)	(1,290)	(856)	(1,620)
Total other income/(expense)	(89,890)	(110,779)	(131,831)	(176,864)
Income (loss) before income taxes	(2,574,899)	(1,584,912)	(4,411,647)	(3,089,549)
Income tax expense	0	0	0	0
Net Income (loss)	(2,574,899)	(1,584,912)	(4,411,647)	(3,089,549)
Other comprehensive income (loss), net of income tax
Foreign currency translation adjustments	6,136	69,710	(17,554)	57,097
Comprehensive income (loss)	$ (2,568,763)	$ (1,515,202)	$ (4,429,201)	$ (3,032,452)
Net income (loss) per share:
Basic	$ (0.06)	$ (0.04)	$ (0.1)	$ (0.08)
Weighted average number of shares:
Basic	45,998,053	38,018,733	45,998,053	37,952,427

Consolidated Statement of Stock

Consolidated Statement of Stockholders' Equity (Unaudited) - USD ($)	Common Stock	Equity Payable	Additional Paid-In Capital	Accumulated Other Comprehensive Loss	Accumulated Deficit	Total
Beginning balance, Amount at Dec. 31, 2017	$ 37,025	$ 100,862	$ 77,910,842	$ (65,764)	$ (80,619,483)	$ (2,636,518)
Beginning balance, Shares at Dec. 31, 2017	37,025,140
Issuance of common stock for cash, Amount	$ 5,775		5,769,225			5,775,000
Issuance of common stock for cash, Shares	5,775,000
Issuance of common stock for warrant conversion, Amount	$ 2,103		2,253,359			2,255,462
Issuance of common stock for warrant conversion, Shares	2,102,804
Issuance of common stock for debt conversion, Amount	$ 1,047		1,088,439			1,089,486
Issuance of common stock for debt conversion, Shares	1,047,583
Issuance of common stock for cashless warrant conversion, Amount	$ 10		(10)
Issuance of common stock for cashless warrant conversion, Shares	10,234
Issuance of common stock for options exercised, Amount	$ 37		21,458			21,495
Issuance of common stock for options exercised, Shares	37,292
Stock based compensation			965,161			965,161
Foreign currency translation adjustment				70,523		70,523
Net loss					(7,215,649)	(7,215,649)
Ending balance, Amount at Dec. 31, 2018	$ 45,997	100,862	88,008,473	4,759	(87,835,132)	324,960
Ending balance, Shares at Dec. 31, 2018	45,998,053
Stock based compensation			676,554			676,554
Foreign currency translation adjustment				(17,554)		(17,554)
Net loss					(4,411,647)	(4,411,647)
Ending balance, Amount at Jun. 30, 2019	$ 45,998	$ 100,862	$ 88,685,027	$ (12,795)	$ (92,246,779)	$ (3,427,687)
Ending balance, Shares at Jun. 30, 2019	45,998,053

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
OPERATING ACTIVITIES
Net loss	$ (4,411,647)	$ (3,089,549)
Adjustments to reconcile net loss to net cash used in operating activities:
Bad debt expense	38,522	118
Loss on conversion of debt	0	41,902
Stock-based compensation	676,554	407,744
Loss on disposal of fixed assets & patents	10,975	8,722
Depreciation and amortization expense	307,481	195,698
Adjustments due to ASC 606	191,065	(610,206)
Increase (decrease) in cash resulting from changes in:
Accounts receivable	136,608	142,646
Other current assets	214,294	(11,996)
Other assets	(24,567)	0
Accounts payable	995,000	(92,157)
Accrued interest	86,866	114,997
Accrued and deferred personnel compensation	(128,007)	141,430
Other liabilities - non-current	(15,081)	(259,623)
Other liabilities - current	69,860	(15,491)
Deferred revenue and customer deposits	(773,015)	819,339
Net cash used in operating activities	(2,625,092)	(2,206,426)
INVESTING ACTIVITIES
Purchases of equipment	(8,183)	(9,953)
Capitalized software development costs	(256,963)	(175,614)
Net cash used in investing activities	(265,146)	(185,567)
FINANCING ACTIVITIES
Payments on notes payable	(5,139)	(2,140,722)
Proceeds from notes payable	0	2,015,000
Proceeds from related party notes payable, net of repayments	2,496,562	80,000
Proceeds from issuance of common stock, net of issuance costs	0	6,163,443
Net cash provided by financing activities	2,491,423	6,117,721
Effect of foreign currency translation on cash flow	(615)	57,097
Net change in cash	(399,430)	3,782,825
Cash at beginning of period	554,255	460,059
Cash at end of period	154,825	4,242,884
Supplemental disclosures:
Cash paid during period for: Interest	71,091	109,635
Non-cash investing and financing activities:
Lease adoption	538,740	0
Issuance of common stock for debt conversion	0	1,047,584
Issuance of common stock for cashless exercise	$ 0	$ 2

1. Nature of Operations and Bas

1. Nature of Operations and Basis of Presentation	6 Months Ended
	Jun. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
1. Nature of Operations and Basis of Presentation	1. Nature of Operations and Basis of Presentation Mobivity Holdings Corp. (the “Company” or “we”) is in the business of developing and operating proprietary platforms over which brands and enterprises can conduct national and localized, data-driven mobile marketing campaigns. Our proprietary platforms, consisting of software available to phones, tablets, PCs, and Point of Sale (“POS”) systems, allow resellers, brands and enterprises to market their products and services to consumers through text messages sent directly to consumers via mobile phones, mobile smartphone applications, and dynamically printed receipt content. On November 14, 2018, we completed the acquisition of certain operating assets relating to Belly, Inc.’s proprietary digital customer loyalty platform, including client contracts, accounts receivable and intellectual property. We generate revenue by charging the resellers, brands and enterprises a per-message transactional fee, through fixed or variable software licensing fees, or via advertising fees. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X promulgated by the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and disclosures required by GAAP for annual financial statements. The accompanying unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 filed with the SEC on April 15, 2019. In the opinion of management, such statements include all adjustments (consisting only of normal recurring items) which are considered necessary for a fair presentation of our condensed consolidated financial statements as of June 30, 2019, and for the three and six months ended June 30, 2019 and 2018. The results of operations for the three and six months ended June 30, 2019 are not necessarily indicative of the operating results for the full year ending December 31, 2019.

2. Summary of Significant Accou

2. Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2019
Accounting Policies [Abstract]
2. Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated. 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 and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Significant estimates used are those related to stock-based compensation, asset impairments, the valuation and useful lives of depreciable tangible and certain intangible assets, the fair value of common stock used in acquisitions of businesses, the fair value of assets and liabilities acquired in acquisitions of businesses, and the valuation allowance of deferred tax assets. Management believes that these estimates are reasonable; however, actual results may differ from these estimates. Accounts Receivable, Allowance for Doubtful Accounts and Concentrations Accounts receivable are carried at their estimated collectible amounts. We grant unsecured credit to substantially all of our customers. Ongoing credit evaluations are performed, and potential credit losses are charged to operations at the time the account receivable is estimated to be uncollectible. Since we cannot necessarily predict future changes in the financial stability of our customers, we cannot guarantee that our reserves will continue to be adequate. As of June 30, 2019, and December 31, 2018, we recorded an allowance for doubtful accounts of $48,038 and $10,104, respectively. Goodwill and Intangible Assets Goodwill is tested for impairment at a minimum on an annual basis. Goodwill is tested for impairment at the reporting unit level by first performing a qualitative assessment to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying value. If the reporting unit does not pass the qualitative assessment, then the reporting unit's carrying value is compared to its fair value. The fair values of the reporting units are estimated using market and discounted cash flow approaches. Goodwill is considered impaired if the carrying value of the reporting unit exceeds its fair value. The discounted cash flow approach uses expected future operating results. Failure to achieve these expected results may cause a future impairment of goodwill at the reporting unit. Intangible assets consist of patents and trademarks, purchased customer contracts, purchased customer and merchant relationships, purchased trade names, purchased technology, non-compete agreements, and software development costs. Intangible assets are amortized over the period of estimated benefit using the straight-line method and estimated useful lives ranging from one to twenty years. No significant residual value is estimated for intangible assets. Software Development Costs Software development costs include direct costs incurred for internally developed products and payments made to independent software developers and/or contract engineers. The Company accounts for software development costs in accordance with the FASB guidance for the costs of computer software to be sold, leased, or otherwise marketed (“ASC Subtopic 985-20”). Software development costs are capitalized once the technological feasibility of a product is established and such costs are determined to be recoverable. Technological feasibility of a product encompasses technical design documentation and integration documentation, or the completed and tested product design and working model. Software development costs are capitalized once technological feasibility of a product is established and such costs are determined to be recoverable against future revenues. Technological feasibility is evaluated on a project-by-project basis. Amounts related to software development that are not capitalized are charged immediately to the appropriate expense account. Amounts that are considered ‘research and development’ that are not capitalized are immediately charged to engineering, research, and development expense. Capitalized costs for those products that are cancelled or abandoned are charged to product development expense in the period of cancellation. Commencing upon product release, capitalized software development costs are amortized to “Amortization Expense - Development” based on the straight-line method over a twenty-four month period. The Company evaluates the future recoverability of capitalized software development costs on an annual basis. For products that have been released in prior years, the primary evaluation criterion is ongoing relations with the customer. Impairment of Long-Lived Assets We evaluate long-lived assets (including intangible assets) for impairment whenever events or changes in circumstances indicate that the carrying amount of a long-lived asset may not be recoverable. An asset is considered impaired if its carrying amount exceeds the undiscounted future net cash flow the asset is expected to generate. Foreign Currency Translation The Company translates the financial statements of its foreign subsidiary from the local (functional) currency into US Dollars using the year or reporting period end or average exchange rates in accordance with the requirements of Accounting Standards Codification subtopic 830-10, Foreign Currency Matters . Revenue Recognition and Concentrations Our Receipt and Reach and customer relationship management are hosted solutions. We generate revenue from licensing our software to clients in our software as a service model, per-message and per-minute transactional fees, and customized professional services. We recognize license/subscription fees over the period of the contract, service fees as the services are performed, and per-message or per-minute transaction revenue when the transaction takes place. Under Topic 606, revenue is recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. We consider authoritative guidance on multiple deliverables in determining whether each deliverable represents a separate unit of accounting. Some customers are billed on a month-to-month basis with no contractual term and are collected by credit card. Revenue is recognized at the time that the services are rendered, and the selling price is fixed with a set range of plans. Cash received in advance of the performance of services is recorded as deferred revenue. Accounting Standards Update (“ASU “) No. 2014-09, Revenue from Contracts with Customers (Accounting Standards Codification 606 (“ASC 606”), is a comprehensive revenue recognition standard that superseded nearly all existing revenue recognition guidance. The Company adopted this standard effective January 1, 2018, applying the modified retrospective method. Upon adoption, the Company discontinued revenue deferral under the sell-through model and commenced recording revenue upon delivery to distributors, net of estimated returns. Generally, the new standard results in earlier recognition of revenues. We determine revenue recognition under ASC 606 through the following steps: · identification of the contract, or contracts, with a customer; · identification of the performance obligations in the contract; · identification of the transaction price; · allocation of the transaction price to the performance obligations in the contract; and · recognition of revenue when, or as, we satisfy a performance obligation. During the six months ended June 30, 2019, two customers accounted for 71% of our revenues. During the six months ended June 30, 2018, three customers accounted for 74% of our revenues. Comprehensive Income (Loss) Comprehensive income (loss) is defined as the change in equity during a period from transactions and other events and circumstances from non-owner sources. We are required to record all components of comprehensive income (loss) in the consolidated financial statements in the period in which they are recognized. Net income (loss) and other comprehensive income (loss), including foreign currency translation adjustments and unrealized gains and losses on investments, are reported, net of their related tax effect, to arrive at comprehensive income (loss). For the six months ended June 30, 2019 and 2018, the comprehensive loss was $4,411,647 and $3,032,452, respectively. Net Loss Per Common Share Basic net loss per share excludes any dilutive effects of options, shares subject to repurchase and warrants. Diluted net loss per share includes the impact of potentially dilutive securities. During the three and six months ended June 30, 2019 and 2018, we had securities outstanding which could potentially dilute basic earnings per share in the future but were excluded from the computation of diluted net loss per share, as their effect would have been anti-dilutive. Reclassifications Certain amounts from prior periods have been reclassified to conform to the current period presentation. Recent Accounting Pronouncements Accounting standards promulgated by the FASB are subject to change. Changes in such standards may have an impact on the Company’s future financial statements. The following are a summary of recent accounting developments. In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, “Leases (Topic 842)”. Under this guidance, an entity is required to recognize right-of-use assets and lease liabilities on its balance sheet and disclose key information about leasing arrangements. This guidance offers specific accounting guidance for a lessee, a lessor and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. This guidance is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period, and requires a modified retrospective adoption, with early adoption permitted. The Company adopted this standard as of January 1, 2019. In May 2014, the FASB issued ASU 2014-09 regarding ASC Topic 606, “Revenue from Contracts with Customers.” ASU 2014-09 provides principles for recognizing 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. In August 2015, the FASB issued ASU 2015-14 to defer the effective date by one year with early adoption permitted as of the original effective date. ASU 2014-09 will be effective for our fiscal year beginning January 1, 2018 unless we elect the earlier date of January 1, 2017. In addition, the FASB issued ASU 2016-08, ASU 2016-10, and ASU 2016-12 in March 2016, April 2016, and May 2016, respectively, to help provide interpretive clarifications on the new guidance in ASC Topic 606. The Company is currently evaluating the accounting, transition, and disclosure requirements of the standard and cannot currently estimate the financial statement impact of adoption. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment, which removes the second step of the two-step goodwill impairment test. Under ASU 2017-04, an entity will apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit’s carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. ASU 2017-04 does not amend the optional qualitative assessment of goodwill impairment. Additionally, an entity should consider income tax effects from any tax-deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. ASU 2017-04 is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019; early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company is currently in the process of evaluating the impact of adopting ASU 2017-04 and cannot currently estimate the financial statement impact of adoption.

3. Goodwill and Purchased Intan

3. Goodwill and Purchased Intangibles	6 Months Ended
	Jun. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
3. Goodwill and Purchased Intangibles	3. Goodwill and Purchased Intangibles Goodwill The carrying value of goodwill at June 30, 2019 and December 31, 2018 was $537,550. Intangible assets Balance at Additions Impairments Amortization Fx and Other Balance at Patents and trademarks $ 104,986 - (10,975) (6,384) 190 87,817 Customer and merchant relationships 836,088 - - (48,425) - 787,663 Trade name 59,996 - - (4,640) 17 55,373 Acquired technology 161,092 - - (8,150) - 152,942 Non-compete agreements 76,791 - - (7,930) - 68,861 $ 1,238,953 - (10,975) (75,529) 207 1,152,656 The following table presents details of our purchased intangible assets as of June 30, 2019 and December 31, 2018: The intangible assets are being amortized on a straight-line basis over their estimated useful lives of one to twenty years. Amortization expense for intangible assets was $37,760 and $11,096 for the three months ended June 30, 2019 and 2018, respectively. Amortization expense for intangible assets was $75,529 and $21,765 for the six months ended June 30, 2019 and 2018, respectively. The estimated future amortization expense of our intangible assets as of June 30, 2019 is as follows: Year ending December 31, Amount 2019 $ 75,530 2020 150,154 2021 147,321 2022 147,208 2023 140,600 Thereafter 491,843 Total $ 1,152,656

4. Software Development Costs

4. Software Development Costs	6 Months Ended
	Jun. 30, 2019
Research and Development [Abstract]
4. Software Development Costs	4. Software Development Costs The Company has capitalized certain costs for software developed or obtained for internal use during the application development stage as it relates to specific contracts. The amounts capitalized include external direct costs of services used in developing internal-use software and for payroll and payroll-related costs of employees directly associated with the development activities The following table presents details of our software development costs as of June 30, 2019 and December 31, 2018: Balance at Additions Amortization Balance at Software Development Costs $ 542,495 $ 256,963 $ (211,022) $ 588,436 $ 542,495 $ 256,963 $ (211,022) $ 588,436 Software development costs are being amortized on a straight-line basis over their estimated useful life of two years. Amortization expense for software development costs was $99,623 and $80,372 for the three months ended June 30, 2019 and 2018, respectively. Amortization expense for software development costs was $211,022 and $159,388 for the six months ended June 30, 2019 and 2018, respectively. The estimated future amortization expense of software development costs as of June 30, 2019 is as follows: Year ending December 31, Amount 2019 $ 203,545 2020 338,097 2021 46,794 2022 - 2023 - Thereafter - Total $ 588,436

5. Operating Lease Assets

5. Operating Lease Assets	6 Months Ended
	Jun. 30, 2019
Response Rate Increase
5. Operating Lease Assets	5. Operating Lease Assets Adoption of Accounting Standards Codification (“ASC”) Topic 842, “Leases." The following are additional details related to leases recorded on our balance sheet as of June 30, 2019: Leases Classification Balance at Assets Operating lease assets Operating lease assets $ 421,032 Total lease assets $ 421,032 Liabilities Current Operating lease liabilities Operating lease liabilities $ 246,243 Noncurrent Operating lease liabilities Noncurrent operating lease liabilities $ 177,432 Total lease liabilities $ 423,675 The maturity analysis below summarizes the remaining future undiscounted cash flows for our operating leases, a reconciliation to operating lease liabilities reported on the Condensed Consolidated Balance Sheet, our weighted-average remaining lease term and weighted average discount rate: Year ending December 31, Amount 2019 $ 132,507 2020 270,982 2021 35,748 2022 11,916 2023 - Thereafter - Total future lease payments 451,153 Less: imputed interest (27,478) Total $ 423,675 Weighted Average Remaining Lease Term (years) Operating leases 2 Weighted Average Discount Rate 6.20%

6. Notes Payable and Interest E

6. Notes Payable and Interest Expense	6 Months Ended
	Jun. 30, 2019
Debt Disclosure [Abstract]
6. Notes Payable and Interest Expense	6. Notes Payable and Interest Expense The following table presents details of our notes payable as of June 30, 2019 and December 31, 2018: Facility Maturity Interest Rate Balance at Balance at BDC Term Loan September 15, 2019 20% $ 257,701 $ 252,837 ACOA Note May 1, 2021 - 130,935 141,081 Wintrust Bank November 1, 2021 6.75% 1,000,000 1,000,000 Related Party Note 3/31/2021-6/30/2021 15% 2,627,954 80,000 Total Debt 4,016,590 1,473,918 Less current portion (849,531) (1,279,590) Long-term debt, net of current portion $ 3,167,059 $ 194,328 BDC Term Loan On January 8, 2016, Livelenz, a wholly-owned subsidiary of the Company (“Livlenz”), entered into an amendment of their original loan agreement dated August 26, 2011 with the Business Development Bank of Canada (“BDC”). Under this agreement the loan will mature, and the commitments will terminate on September 15, 2019. On July 26, 2019, Livelenz, entered into an amendment of their original loan agreement dated August 26, 2011 with the Business Development Bank of Canada (“BDC”). Under this agreement the loan will mature, and the commitments will terminate on October 15, 2021. ACOA Note On April 29, 2016, Livelenz, entered into an amendment of the original agreement dated December 2, 2014 with the Atlantic Canada Opportunities Agency (“ACOA”). Under this agreement, repayments began on June 1, 2016, and the note will mature and the commitments will terminate on May 1, 2021. SVB Working Capital Line of Credit Facility In March 2016, we entered into a Working Capital Line of Credit Facility (the “Facility”) with Silicon Valley Bank (“SVB”) to provide up to $2 million to finance our general working capital needs. The Facility is funded based on cash on deposit balances and advances against our accounts receivable based on customer invoicing. Interest on Facility borrowings is calculated at rates between the prime rate minus 1.75% and prime rate plus 3.75% based on the borrowing base formula used at the time of borrowing. The Facility contains standard events of default, including payment defaults, breaches of representations, breaches of affirmative or negative covenants, and bankruptcy. As of March 31, 2018, this Facility was paid off and closed. Under the terms of the Facility, the Company is obligated to pay a commitment fee on the available unused amount of the Facility commitments equal to 0.5% per annum. The Company capitalized debt issuance costs of $42,287 as of March 31, 2018 related to the Facility, which have been amortized on a straight-line basis to interest expense over the two-year term of the Facility. As of June 30, 2019, the Company has fully amortized these costs. Wintrust Loan On November 14, 2018, the Company entered into a Loan and Security Agreement with Wintrust Bank. The Loan and Security Agreement provides for a single-term loan to us in the original principal amount of $1,000,000. Interest accrues on the unpaid principal amount at the rate of prime plus 1.5%. The loan is a three-year loan and is interest-only payable for the first six months of the loan. Commencing on May 1, 2019, the Company will commence monthly payments of principal in the amount of $33,333.33 in addition to the monthly payment of accrued interest. The loan is secured by all of our assets other than our intellectual property. We used the proceeds of the loan to re-finance a loan in the principal amount of $1,000,000 we assumed as part of the acquisition of the Belly assets. Related Party Notes During the six months ended June 30, 2019 we issued unsecured notes in the principle aggregate amount of $2,500,000, which are due in the first and second quarters of 2021. These notes bear interest on the unpaid balance at the rate of fifteen percent (15%) per annum. The Company may prepay any of the Notes without notice, subject to a two percent (2%) pre-payment penalty. Interest Expense Interest expense was $89,855 and $109,635 during the three months ended June 30, 2019 and 2018, respectively. Interest expense was $130,992 and $167,124 during the six months ended June 30, 2019 and 2018, respectively.

7. Stockholders' Equity

7. Stockholders' Equity	6 Months Ended
	Jun. 30, 2019
Share-based Payment Arrangement [Abstract]
7. Stockholders' Equity	7. Stockholders’ Equity Common Stock 2018 On February 7, 2018, the Company issued 12,500 shares of our common stock, at a price of $0.78 per share, for the gross proceeds of $9,595 in conjunction with one employee that exercised vested stock options. On February 23, 2018, the Company issued 1,808 shares of our common stock in a cashless transaction related to a 25,000 warrant exercise. During the three months ended March 31, 2018, the Company issued 2,018,125 shares of common stock for $2,018,125 related to the exercise of certain warrants. In June 2018, the Company commenced a private placement of its common shares at an offering price of $1.00 per share. As of September 30, 2018, the Company had sold 5,775,000 shares of its common stock for gross proceeds of $5,775,000. In addition the Company issued 1,047,583 shares of its common stock associated with the cancellation of $1,000,000 of principal, $47,583 of accrued interest, and a loss on conversion of $41,902 under its February 2018 private placement Notes (See Note 5). On August 29, 2018, the Company issued 24,792 shares of our common stock, at a price of $0.48 per share, for the gross proceeds of $11,875 in conjunction with one employee that exercised vested stock options. On October 19, 2018, the Company issued 84,679 shares of our common stock, at a price of $1.20 per share, for the gross proceeds of $101,615 in conjunction with the exercise of warrants. On November 6, 2018, the Company issued 8,426 shares of our common stock in a cashless transaction related to a 25,000 warrant exercise. On December 31, 2018, the Company recorded stock based compensation expense of $260,000 related to restricted stock units for members of our board of directors. 2019 On March 31, 2019, the Company recorded stock based compensation expense of $65,000 related to restricted stock units for members of our board of directors. As of June 30, 2019, and December 31, 2018 we had an equity payable balance of $100,862 and $100,862, respectively. Stock-based Plans Stock Option Activity The following table summarizes stock option activity for the year ended December 31, 2018 and for the six months ended June 30, 2019: Options Outstanding at December 31, 2017 6,818,948 Granted 855,000 Exercised (12,500) Forfeit/canceled (1,566,589) Expired (1,082,641) Outstanding at December 31, 2018 5,012,218 Granted 2,065,000 Exercised - Forfeit/canceled (524,848) Expired (444,652) Outstanding at June 30, 2019 6,107,718 The weighted average exercise price of stock options granted during the period was $1.04 and the related weighted average grant date fair value was $0.73 per share. 2018 On January 1, 2018, the Company granted two employees a total of 10,000 options to purchase shares of the Company common stock at the closing price as of January 1, 2018 of $1.20 per share. The Option Shares will vest ratably over forty-eight (48) months and are exercisable until January 1, 2028. The total estimated value using the Black-Scholes Model, based on a volatility rate of 104.04% and an option fair value of $.97 was $9,729. On January 8, 2018, the Company granted one employee a total of 50,000 options to purchase shares of the Company common stock at the closing price as of January 8, 2018 of $1.20 per share. The Option Shares will vest ratably over forty-eight (48) months and are exercisable until January 8, 2028. The total estimated value using the Black-Scholes Model, based on a volatility rate of 104.06% and an option fair value of $.97 was $48,682. On January 29, 2018, the Company granted one employee a total of 20,000 options to purchase shares of the Company common stock at the closing price as of January 29, 2018 of $1.03 per share. The Option Shares will vest ratably over forty-eight (48) months and are exercisable until January 29, 2028. The total estimated value using the Black-Scholes Model, based on a volatility rate of 103.49% and an option fair value of $.83 was $16,690. On February 7, 2018, the Company issued 12,500 shares of our common stock, at a price of $0.78 per share, for the gross proceeds of $9,595 in conjunction with one employee that exercised vested stock options. On February 15, 2018, the Company granted one employee a total of 100,000 options to purchase shares of the Company common stock at the closing price as of February 15, 2018 of $1.12 per share. The Option Shares will vest ratably over forty-eight (48) months and are exercisable until February 15, 2028. The total estimated value using the Black-Scholes Model, based on a volatility rate of 103.60% and an option fair value of $.91 was $90,904. On March 26, 2018, the Company granted one employee a total of 300,000 options to purchase shares of the Company common stock at the closing price as of March 26, 2018 of $1.10 per share. The Option Shares will vest ratably over forty-eight (48) months and are exercisable until March 26, 2028. The total estimated value using the Black-Scholes Model, based on a volatility rate of 101.94% and an option fair value of $.88 was $265,575. On April 16, 2018, the Company granted one employee a total of 50,000 options to purchase shares of the Company common stock at the closing price as of April 16, 2018 of $1.06 per share. The Option Shares will vest ratably over forty-eight (48) months and are exercisable until April 16, 2028. The total estimated value using the Black-Scholes Model, based on a volatility rate of 102.07% and an option fair value of $.85 was $42,693. On May 7, 2018, the Company granted one employee a total of 10,000 options to purchase shares of the Company common stock at the closing price as of May 7, 2018 of $0.90 per share. The Option Shares will vest ratably over forty-eight (48) months and are exercisable until May 7, 2028. The total estimated value using the Black-Scholes Model, based on a volatility rate of 101.42% and an option fair value of $.72 was $7,231. On June 1, 2018, the Company granted one employee a total of 10,000 options to purchase shares of the Company common stock at the closing price as of June 1, 2018 of $1.12 per share. The Option Shares will vest ratably over forty-eight (48) months and are exercisable until June 1, 2028. The total estimated value using the Black-Scholes Model, based on a volatility rate of 95.44% and an option fair value of $.87 was $8,705. 2019 On January 7, 2019, the Company granted one employee a total of 10,000 options to purchase shares of the Company common stock at the closing price as of January 7, 2019 of $1.17 per share. The Option Shares will vest ratably over forty-eight (48) months and are exercisable until January 7, 2029. The total estimated value using the Black-Scholes Model, based on a volatility rate of 90.82% and an option fair value of $.88 was $8,821. On January 21, 2019, the Company granted one employee a total of 15,000 options to purchase shares of the Company common stock at the closing price as of January 21, 2019 of $1.17 per share. The Option Shares will vest ratably over forty-eight (48) months and are exercisable until January 21, 2029. The total estimated value using the Black-Scholes Model, based on a volatility rate of 90.75% and an option fair value of $.88 was $13,239. On February 12, 2019, the Company granted one employee a total of 150,000 options to purchase shares of the Company common stock at the closing price as of February 12, 2019 of $1.00 per share. The Option Shares will vest ratably over forty-eight (48) months and are exercisable until February 12, 2029. The total estimated value using the Black-Scholes Model, based on a volatility rate of 90.79% and an option fair value of $.75 was $113,046. On February 18, 2019, the Company granted one employee a total of 15,000 options to purchase shares of the Company common stock at the closing price as of February 18, 2019 of $1.05 per share. The Option Shares will vest ratably over forty-eight (48) months and are exercisable until February 18, 2029. The total estimated value using the Black-Scholes Model, based on a volatility rate of 90.88% and an option fair value of $.84 was $12,537. On February 25, 2019, the Company granted one employee a total of 50,000 options to purchase shares of the Company common stock at the closing price as of February 25, 2019 of $1.00 per share. The Option Shares will vest ratably over forty-eight (48) months and are exercisable until February 25, 2029. The total estimated value using the Black-Scholes Model, based on a volatility rate of 90.88% and an option fair value of $.75 was $37,697. On March 11, 2019, the Company granted one employee a total of 50,000 options to purchase shares of the Company common stock at the closing price as of March 11, 2019 of $1.00 per share. The Option Shares will vest ratably over forty-eight (48) months and are exercisable until March 11, 2029. The total estimated value using the Black-Scholes Model, based on a volatility rate of 90.90% and an option fair value of $.75 was $37,688. On May 17, 2019, the Company granted three employees a total of 1,775,000 options to purchase shares of the Company common stock at the closing price as of May 17, 2019 of $1.04 per share. The Option Shares will vest ratably over forty-eight (48) months and are exercisable until May 17, 2029. The total estimated value using the Black-Scholes Model, based on a volatility rate of 80.17% and an option fair value of $.72 was $1,283,178. Stock-Based Compensation Expense from Stock Options and Warrants The impact on our results of operations of recording stock-based compensation expense for the three and six months ended June 30, 2019 and 2018 were as follows: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 General and administrative $ 438,283 $ 62,187 $ 490,037 $ 217,851 Sales and marketing 26,152 55,617 58,097 124,097 Engineering, research, and development 31,370 37,098 63,418 65,796 $ 495,805 $ 154,902 $ 611,552 $ 407,744 Valuation Assumptions The fair value of each stock option award was calculated on the date of grant using the Black-Scholes option pricing model. The following weighted average assumptions were used for the six months ended June 30, 2019 and 2018. Six Months Ended June 30, 2019 2018 Risk-free interest rate 2.25 % 2.68 % Expected life (years) 6.00 6.00 Expected dividend yield - % - % Expected volatility 81.67 % 101.94 % The risk-free interest rate assumption is based upon published interest rates appropriate for the expected life of our employee stock options. The expected life of the stock options represents the weighted-average period that the stock options are expected to remain outstanding and was determined based on historical experience of similar awards, giving consideration to the contractual terms of the stock-based awards, vesting schedules and expectations of future employee behavior as influenced by changes to the terms of its stock-based awards. The dividend yield assumption is based on our history of not paying dividends and no future expectations of dividend payouts. The expected volatility in 2019 and 2018 is based on the historical publicly traded price of our common stock. Restricted stock units The following table summarizes restricted stock unit activity under our stock-based plans for the year ended December 31, 2018 and for the six months ended June 30, 2019: Shares Outstanding at December 31, 2017 662,800 Awarded - Released - Canceled/forfeited/expired - Outstanding at December 31, 2018 662,800 Awarded 294,448 Released - Canceled/forfeited/expired - Outstanding at June 30, 2019 957,248 Expected to vest at June 30, 2019 957,248 Vested at June 30, 2019 957,248 Unvested at June 30, 2019 - Unrecognized expense at June 30, 2019 $ - 2018 During the twelve months ended December 31, 2018, the Company did not issue any restricted stock units. During the twelve months ended December 31, 2018, the Company recorded $37,249 in restricted stock units amortization and $260,000 in board compensation. 2019 On January 1, 2019, the Company granted four independent directors a total of 222,224 restricted stock units. The units were valued at $260,000 or $1.17 per share, based on the closing stock price on the date of grant. All units vested immediately. The shares of Common Stock associated with the Restricted Stock Unit evidenced by this Agreement will be issued to the director upon the earliest to occur of (A) January 1, 2022, (B) a change in control of the Company, and (C) the termination of the director’s service with the Company. On March 31, 2019, the Company granted four independent directors a total of 72,224 restricted stock units. The units were valued at $65,000 or $0.90 per share, based on the closing stock price on the date of grant. All units vested immediately. The shares of Common Stock associated with the Restricted Stock Unit evidenced by this Agreement will be issued to the director upon the earliest to occur of (A) March 31, 2022, (B) a change in control of the Company, and (C) the termination of the director’s service with the Company. Stock Based Compensation from Restricted Stock The impact on our results of operations of recording stock-based compensation expense for restricted stock units for the three and six months ended June 30, 2019 and 2018 was as follows: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 General and administrative $ - $ 8,702 $ 65,002 $ 30,546 $ - $ 8,702 $ 65,002 $ 30,546 As of June 30, 2019, there was no unearned restricted stock unit compensation. Warrants Issued to Investors and Placement Agents At June 30, 2019, we have warrants to purchase 432,500 shares of common stock at $1.20 per share and 234,500 at $1.00 per share, respectively, which are outstanding. All of these warrants expire in March 2020.

8. Fair Value Measurements

8. Fair Value Measurements	6 Months Ended
	Jun. 30, 2019
Fair Value Disclosures [Abstract]
8. Fair Value Measurements	8. Fair Value Measurements Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the authoritative guidance establishes a three-tier value hierarchy, which prioritizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs other than the quoted prices in active markets that are observable either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data, which requires us to develop our own assumptions. This hierarchy requires companies to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. On a recurring basis, we measure certain financial assets and liabilities at fair value. The following table presents assets that are measured and recognized at fair value as of June 30, 2019 on a recurring and non-recurring basis: Description Level 1 Level 2 Level 3 Gains (Losses) Goodwill (non-recurring) $ -- $ -- $ 537,550 -- Intangibles, net (non-recurring) $ -- $ -- $ 1,741,092 -- The following table presents assets that are measured and recognized at fair value as of December 31, 2018 on a recurring and non-recurring basis: Description Level 1 Level 2 Level 3 Gains (Losses) Goodwill (non-recurring) $ -- $ -- $ 537,550 -- Intangibles, net (non-recurring) $ -- $ -- $ 1,781,448 --

9. Commitments and Contingencie

9. Commitments and Contingencies	6 Months Ended
	Jun. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
9. Commitments and Contingencies	9. Commitments and Contingencies Litigation As of the date of this report, there are no pending legal proceedings to which we or our properties are subject, except for routine litigation incurred in the normal course of business. In February 2019, a complaint was filed against us and five of our employees in the U.S. Federal District Court for the Southern District of New York by mGage, LLC (mGage, LLC v. Glenn Stansbury, et al., No. 19-cv-1165-CM (S.D.N.Y. Filed 2/7/19). In the complaint, the plaintiff alleged that we and five of our employees, who previously worked at mGage, misappropriated confidential information belonging to mGage in violation of the federal Defend Trade Secrets Act, that those same individuals violated non-compete agreements through their employment at Mobivity and that we tortiously interfered with mGage’s business opportunities. On August 14, 2019 we entered into a settlement agreement with mGage pursuant to which we and mGage released each other of all claims and we agreed to pay mGage $300,000 over a period of time.

10. Related Party Transactions

10. Related Party Transactions	6 Months Ended
	Jun. 30, 2019
Related Party Transactions [Abstract]
10. Related Party Transactions	10. Related Party Transactions During February 2018, we commenced an offer to certain investors, officers and directors of the Company of up to $750,000 in Unsecured Promissory Notes (individually, a “ Note Notes During the six months ended June 30, 2019, we issued to one of our directors, unsecured notes in the principal aggregate amount of $2,500,000, which are due and payable in the first two quarters of 2021. These notes bear interest on the unpaid balance at the rate of fifteen percent (15%) per annum. The Company may prepay any of the Notes without notice, subject to a two percent (2%) pre-payment penalty. As noted in subsequent events, we conducted a private placement of our securities in July 2019. The note holder participated in the private placement described in Note 11, by converting all principal and accrued interest under the notes, totaling $3,082,916, into 3,082,916 units of our securities, with each unit consisting of one share of our common stock and a warrant to purchase to one-half share of our common stock at an exercise price of $1.25 per share.

11. Subsequent Events

11. Subsequent Events	6 Months Ended
	Jun. 30, 2019
Subsequent Events [Abstract]
11. Subsequent Events	11. Subsequent Events 2019 Private Placement In July 2019, we commenced a private placement of 7,000,000 units of our securities, at a price of $1.00 per unit. Each unit consists of one share of our common stock and a common stock purchase warrant to purchase one-half share of our common stock, over a two year period, at an exercise price of $1.25 per share. On July 26, 2019, Livelenz, entered into an amendment of their original loan agreement dated August 26, 2011 with the Business Development Bank of Canada (“BDC”). Under this agreement the loan will mature, and the commitments will terminate on October 15, 2021.

2. Summary of Significant Acc_2

2. Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2019
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated.
Use of Estimates	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 and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Significant estimates used are those related to stock-based compensation, asset impairments, the valuation and useful lives of depreciable tangible and certain intangible assets, the fair value of common stock used in acquisitions of businesses, the fair value of assets and liabilities acquired in acquisitions of businesses, and the valuation allowance of deferred tax assets. Management believes that these estimates are reasonable; however, actual results may differ from these estimates.
Accounts Receivable, Allowance for Doubtful Accounts and Concentrations	Accounts Receivable, Allowance for Doubtful Accounts and Concentrations Accounts receivable are carried at their estimated collectible amounts. We grant unsecured credit to substantially all of our customers. Ongoing credit evaluations are performed, and potential credit losses are charged to operations at the time the account receivable is estimated to be uncollectible. Since we cannot necessarily predict future changes in the financial stability of our customers, we cannot guarantee that our reserves will continue to be adequate. As of June 30, 2019, and December 31, 2018, we recorded an allowance for doubtful accounts of $48,038 and $10,104, respectively.
Goodwill and Intangible Assets	Goodwill and Intangible Assets Goodwill is tested for impairment at a minimum on an annual basis. Goodwill is tested for impairment at the reporting unit level by first performing a qualitative assessment to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying value. If the reporting unit does not pass the qualitative assessment, then the reporting unit's carrying value is compared to its fair value. The fair values of the reporting units are estimated using market and discounted cash flow approaches. Goodwill is considered impaired if the carrying value of the reporting unit exceeds its fair value. The discounted cash flow approach uses expected future operating results. Failure to achieve these expected results may cause a future impairment of goodwill at the reporting unit. Intangible assets consist of patents and trademarks, purchased customer contracts, purchased customer and merchant relationships, purchased trade names, purchased technology, non-compete agreements, and software development costs. Intangible assets are amortized over the period of estimated benefit using the straight-line method and estimated useful lives ranging from one to twenty years. No significant residual value is estimated for intangible assets.
Software Development Costs	Software Development Costs Software development costs include direct costs incurred for internally developed products and payments made to independent software developers and/or contract engineers. The Company accounts for software development costs in accordance with the FASB guidance for the costs of computer software to be sold, leased, or otherwise marketed (“ASC Subtopic 985-20”). Software development costs are capitalized once the technological feasibility of a product is established and such costs are determined to be recoverable. Technological feasibility of a product encompasses technical design documentation and integration documentation, or the completed and tested product design and working model. Software development costs are capitalized once technological feasibility of a product is established and such costs are determined to be recoverable against future revenues. Technological feasibility is evaluated on a project-by-project basis. Amounts related to software development that are not capitalized are charged immediately to the appropriate expense account. Amounts that are considered ‘research and development’ that are not capitalized are immediately charged to engineering, research, and development expense. Capitalized costs for those products that are cancelled or abandoned are charged to product development expense in the period of cancellation. Commencing upon product release, capitalized software development costs are amortized to “Amortization Expense - Development” based on the straight-line method over a twenty-four month period. The Company evaluates the future recoverability of capitalized software development costs on an annual basis. For products that have been released in prior years, the primary evaluation criterion is ongoing relations with the customer.
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets We evaluate long-lived assets (including intangible assets) for impairment whenever events or changes in circumstances indicate that the carrying amount of a long-lived asset may not be recoverable. An asset is considered impaired if its carrying amount exceeds the undiscounted future net cash flow the asset is expected to generate.
Foreign Currency Translation	Foreign Currency Translation The Company translates the financial statements of its foreign subsidiary from the local (functional) currency into US Dollars using the year or reporting period end or average exchange rates in accordance with the requirements of Accounting Standards Codification subtopic 830-10, Foreign Currency Matters .
Revenue Recognition and Concentrations	Revenue Recognition and Concentrations Our Receipt and Reach and customer relationship management are hosted solutions. We generate revenue from licensing our software to clients in our software as a service model, per-message and per-minute transactional fees, and customized professional services. We recognize license/subscription fees over the period of the contract, service fees as the services are performed, and per-message or per-minute transaction revenue when the transaction takes place. Under Topic 606, revenue is recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. We consider authoritative guidance on multiple deliverables in determining whether each deliverable represents a separate unit of accounting. Some customers are billed on a month-to-month basis with no contractual term and are collected by credit card. Revenue is recognized at the time that the services are rendered, and the selling price is fixed with a set range of plans. Cash received in advance of the performance of services is recorded as deferred revenue. Accounting Standards Update (“ASU “) No. 2014-09, Revenue from Contracts with Customers (Accounting Standards Codification 606 (“ASC 606”), is a comprehensive revenue recognition standard that superseded nearly all existing revenue recognition guidance. The Company adopted this standard effective January 1, 2018, applying the modified retrospective method. Upon adoption, the Company discontinued revenue deferral under the sell-through model and commenced recording revenue upon delivery to distributors, net of estimated returns. Generally, the new standard results in earlier recognition of revenues. We determine revenue recognition under ASC 606 through the following steps: · identification of the contract, or contracts, with a customer; · identification of the performance obligations in the contract; · identification of the transaction price; · allocation of the transaction price to the performance obligations in the contract; and · recognition of revenue when, or as, we satisfy a performance obligation. During the six months ended June 30, 2019, two customers accounted for 71% of our revenues. During the six months ended June 30, 2018, three customers accounted for 74% of our revenues.
Comprehensive Income (Loss)	Comprehensive Income (Loss) Comprehensive income (loss) is defined as the change in equity during a period from transactions and other events and circumstances from non-owner sources. We are required to record all components of comprehensive income (loss) in the consolidated financial statements in the period in which they are recognized. Net income (loss) and other comprehensive income (loss), including foreign currency translation adjustments and unrealized gains and losses on investments, are reported, net of their related tax effect, to arrive at comprehensive income (loss). For the six months ended June 30, 2019 and 2018, the comprehensive loss was $4,411,647 and $3,032,452, respectively.
Net Loss Per Common Share	Net Loss Per Common Share Basic net loss per share excludes any dilutive effects of options, shares subject to repurchase and warrants. Diluted net loss per share includes the impact of potentially dilutive securities. During the three and six months ended June 30, 2019 and 2018, we had securities outstanding which could potentially dilute basic earnings per share in the future but were excluded from the computation of diluted net loss per share, as their effect would have been anti-dilutive.
Reclassifications	Reclassifications Certain amounts from prior periods have been reclassified to conform to the current period presentation.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Accounting standards promulgated by the FASB are subject to change. Changes in such standards may have an impact on the Company’s future financial statements. The following are a summary of recent accounting developments. In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, “Leases (Topic 842)”. Under this guidance, an entity is required to recognize right-of-use assets and lease liabilities on its balance sheet and disclose key information about leasing arrangements. This guidance offers specific accounting guidance for a lessee, a lessor and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. This guidance is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period, and requires a modified retrospective adoption, with early adoption permitted. The Company adopted this standard as of January 1, 2019. In May 2014, the FASB issued ASU 2014-09 regarding ASC Topic 606, “Revenue from Contracts with Customers.” ASU 2014-09 provides principles for recognizing 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. In August 2015, the FASB issued ASU 2015-14 to defer the effective date by one year with early adoption permitted as of the original effective date. ASU 2014-09 will be effective for our fiscal year beginning January 1, 2018 unless we elect the earlier date of January 1, 2017. In addition, the FASB issued ASU 2016-08, ASU 2016-10, and ASU 2016-12 in March 2016, April 2016, and May 2016, respectively, to help provide interpretive clarifications on the new guidance in ASC Topic 606. The Company is currently evaluating the accounting, transition, and disclosure requirements of the standard and cannot currently estimate the financial statement impact of adoption. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment, which removes the second step of the two-step goodwill impairment test. Under ASU 2017-04, an entity will apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit’s carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. ASU 2017-04 does not amend the optional qualitative assessment of goodwill impairment. Additionally, an entity should consider income tax effects from any tax-deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. ASU 2017-04 is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019; early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company is currently in the process of evaluating the impact of adopting ASU 2017-04 and cannot currently estimate the financial statement impact of adoption.

3. Goodwill and Purchased Int_2

3. Goodwill and Purchased Intangibles (Tables)	6 Months Ended
	Jun. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	The following table presents details of our purchased intangible assets as of June 30, 2019 and December 31, 2018: Balance at Additions Impairments Amortization Fx and Other Balance at Patents and trademarks $ 104,986 - (10,975) (6,384) 190 87,817 Customer and merchant relationships 836,088 - - (48,425) - 787,663 Trade name 59,996 - - (4,640) 17 55,373 Acquired technology 161,092 - - (8,150) - 152,942 Non-compete agreements 76,791 - - (7,930) - 68,861 $ 1,238,953 - (10,975) (75,529) 207 1,152,656
Future Amortization Intangible Assets	The estimated future amortization expense of our intangible assets as of June 30, 2019 is as follows: Year ending December 31, Amount 2019 $ 75,530 2020 150,154 2021 147,321 2022 147,208 2023 140,600 Thereafter 491,843 Total $ 1,152,656

4. Software Development Costs (

4. Software Development Costs (Tables)	6 Months Ended
	Jun. 30, 2019
Research and Development [Abstract]
Software Development Costs	The following table presents details of our software development costs as of June 30, 2019 and December 31, 2018: Balance at Additions Amortization Balance at Software Development Costs $ 542,495 $ 256,963 $ (211,022) $ 588,436 $ 542,495 $ 256,963 $ (211,022) $ 588,436
Future Amortization Software	The estimated future amortization expense of software development costs as of June 30, 2019 is as follows: Year ending December 31, Amount 2019 $ 203,545 2020 338,097 2021 46,794 2022 - 2023 - Thereafter - Total $ 588,436

5. Operating Lease Assets (Tabl

5. Operating Lease Assets (Tables)	6 Months Ended
	Jun. 30, 2019
Response Rate Increase
Additional details related to leases on Balance Sheet	The following are additional details related to leases recorded on our balance sheet as of June 30, 2019: Leases Classification Balance at Assets Operating lease assets Operating lease assets $ 421,032 Total lease assets $ 421,032 Liabilities Current Operating lease liabilities Operating lease liabilities $ 246,243 Noncurrent Operating lease liabilities Noncurrent operating lease liabilities $ 177,432 Total lease liabilities $ 423,675
Schedule of Minimum Lease Payments	The maturity analysis below summarizes the remaining future undiscounted cash flows for our operating leases, a reconciliation to operating lease liabilities reported on the Condensed Consolidated Balance Sheet, our weighted-average remaining lease term and weighted average discount rate: Year ending December 31, Amount 2019 $ 132,507 2020 270,982 2021 35,748 2022 11,916 2023 - Thereafter - Total future lease payments 451,153 Less: imputed interest (27,478) Total $ 423,675 Weighted Average Remaining Lease Term (years) Operating leases 2 Weighted Average Discount Rate 6.20%

6. Notes Payable and Interest_2

6. Notes Payable and Interest Expense (Tables)	6 Months Ended
	Jun. 30, 2019
Debt Disclosure [Abstract]
Schedule Of Notes Payable	The following table presents details of our notes payable as of June 30, 2019 and December 31, 2018: Facility Maturity Interest Rate Balance at Balance at BDC Term Loan September 15, 2019 20% $ 257,701 $ 252,837 ACOA Note May 1, 2021 - 130,935 141,081 Wintrust Bank November 1, 2021 6.75% 1,000,000 1,000,000 Related Party Note 3/31/2021-6/30/2021 15% 2,627,954 80,000 Total Debt 4,016,590 1,473,918 Less current portion (849,531) (1,279,590) Long-term debt, net of current portion $ 3,167,059 $ 194,328

7. Stockholders' Equity (Tables

7. Stockholders' Equity (Tables)	6 Months Ended
	Jun. 30, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Option Activity	he following table summarizes stock option activity for the year ended December 31, 2018 and for the six months ended June 30, 2019: Options Outstanding at December 31, 2017 6,818,948 Granted 855,000 Exercised (12,500) Forfeit/canceled (1,566,589) Expired (1,082,641) Outstanding at December 31, 2018 5,012,218 Granted 2,065,000 Exercised - Forfeit/canceled (524,848) Expired (444,652) Outstanding at June 30, 2019 6,107,718
Stock-Based Compensation Expense	he impact on our results of operations of recording stock-based compensation expense for the three and six months ended June 30, 2019 and 2018 were as follows: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 General and administrative $ 438,283 $ 62,187 $ 490,037 $ 217,851 Sales and marketing 26,152 55,617 58,097 124,097 Engineering, research, and development 31,370 37,098 63,418 65,796 $ 495,805 $ 154,902 $ 611,552 $ 407,744
Valuation Assumptions	The following weighted average assumptions were used for the six months ended June 30, 2019 and 2018. Six Months Ended June 30, 2019 2018 Risk-free interest rate 2.25 % 2.68 % Expected life (years) 6.00 6.00 Expected dividend yield - % - % Expected volatility 81.67 % 101.94 %
Restricted Stock Unit Activity	The following table summarizes restricted stock unit activity under our stock-based plans for the year ended December 31, 2018 and for the six months ended June 30, 2019: Shares Outstanding at December 31, 2017 662,800 Awarded - Released - Canceled/forfeited/expired - Outstanding at December 31, 2018 662,800 Awarded 294,448 Released - Canceled/forfeited/expired - Outstanding at June 30, 2019 957,248 Expected to vest at June 30, 2019 957,248 Vested at June 30, 2019 957,248 Unvested at June 30, 2019 - Unrecognized expense at June 30, 2019 $ -
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-Based Compensation Expense	The impact on our results of operations of recording stock-based compensation expense for restricted stock units for the three and six months ended June 30, 2019 and 2018 was as follows: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 General and administrative $ - $ 8,702 $ 65,002 $ 30,546 $ - $ 8,702 $ 65,002 $ 30,546

8. Fair Value Measurements (Tab

8. Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2019
Fair Value Disclosures [Abstract]
Financial Assets And Liabilities Measured At Fair Value On A Recurring And Non-Recurring Basis	The following table presents assets that are measured and recognized at fair value as of June 30, 2019 on a recurring and non-recurring basis: Description Level 1 Level 2 Level 3 Gains (Losses) Goodwill (non-recurring) $ -- $ -- $ 537,550 -- Intangibles, net (non-recurring) $ -- $ -- $ 1,741,092 -- The following table presents assets that are measured and recognized at fair value as of December 31, 2018 on a recurring and non-recurring basis: Description Level 1 Level 2 Level 3 Gains (Losses) Goodwill (non-recurring) $ -- $ -- $ 537,550 -- Intangibles, net (non-recurring) $ -- $ -- $ 1,781,448 --

2. Summary of Significant Acc_3

2. Summary of Significant Accounting Policies (Details)	3 Months Ended			6 Months Ended
	Jun. 30, 2019USD ($)	Jun. 30, 2018USD ($)	Mar. 31, 2018customer	Jun. 30, 2019USD ($)customer	Jun. 30, 2018USD ($)	Dec. 31, 2018USD ($)
Product Information [Line Items]
Allowance for doubtful accounts	$ 48,038			$ 48,038		$ 10,104
Comprehensive loss	$ (2,568,763)	$ (1,515,202)		$ (4,429,201)	$ (3,032,452)
Sales Revenue Net [Member]
Product Information [Line Items]
Number of significant customers | customer			2	2
Customer concentration risk			74.00%	71.00%

3. Goodwill and Purchased Int_3

3. Goodwill and Purchased Intangible Assets (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Finite-Lived Intangible Assets [Line Items]
Goodwill	$ 537,550		$ 537,550		$ 537,550
Amortization expense	$ 37,760	$ 11,096	$ 75,529	$ 21,765
Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful lives			1 year
Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful lives			20 years

3. Goodwill and Purchased Int_4

3. Goodwill and Purchased Intangibles (Intangible Assets) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Finite-Lived Intangible Assets [Line Items]
Balance at Beginning of Period			$ 1,238,953
Additions			0
Impairments			10,975
Amortization	$ (37,760)	$ (11,096)	(75,529)	$ (21,765)
FX and Other			207
Balance at End of Period	1,152,656		1,152,656
Patents And Trademarks [Member]
Finite-Lived Intangible Assets [Line Items]
Balance at Beginning of Period			104,986
Additions			0
Impairments			10,975
Amortization			6,384
FX and Other			190
Balance at End of Period	87,817		87,817
Customer And Merchant Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Balance at Beginning of Period			836,088
Additions			0
Impairments			0
Amortization			48,425
FX and Other			0
Balance at End of Period	787,663		787,663
Trade Names [Member]
Finite-Lived Intangible Assets [Line Items]
Balance at Beginning of Period			59,996
Additions			0
Impairments			0
Amortization			4,640
FX and Other			17
Balance at End of Period	55,373		55,373
Acquired technology [Member]
Finite-Lived Intangible Assets [Line Items]
Balance at Beginning of Period			161,092
Additions			0
Impairments			0
Amortization			8,150
FX and Other			0
Balance at End of Period	152,942		152,942
Noncompete Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Balance at Beginning of Period			76,791
Additions			0
Impairments			0
Amortization			7,930
FX and Other			0
Balance at End of Period	$ 68,861		$ 68,861

3. Goodwill and Purchased Int_5

3. Goodwill and Purchased Intangible Assets: (Future Amortization Intangible Assets) (Details) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
2019	$ 75,530
2020	150,154
2021	147,321
2022	147,208
2023	140,600
Thereafter	491,843
Total	$ 1,152,656	$ 1,238,953

4. Software Development Costs_2

4. Software Development Costs (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 37,760	$ 11,096	$ 75,529	$ 21,765
Computer Software Intangible Asset [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 99,623	$ 80,372	$ 211,022	$ 159,388
Estimated useful lives			2 years	2 years

4. Software Development Costs_

4. Software Development Costs: (Software Development Costs) (Details)	6 Months Ended
	Jun. 30, 2019USD ($)
Finite-Lived Intangible Assets [Line Items]
Balance at beginning of period	$ 542,495
Additions	256,963
Amortization	(211,022)
Balance at end of period	588,436
Computer Software Intangible Asset [Member]
Finite-Lived Intangible Assets [Line Items]
Balance at beginning of period	542,495
Additions	256,963
Amortization	(211,022)
Balance at end of period	$ 588,436

4. Software Development Costs_3

4. Software Development Costs: (Future Amortization Software) (Details) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Finite-Lived Intangible Assets [Line Items]
2019	$ 75,530
2020	150,154
2021	147,321
2022	147,208
2023	140,600
Thereafter	491,843
Total	1,152,656	$ 1,238,953
Computer Software Intangible Asset [Member]
Finite-Lived Intangible Assets [Line Items]
2019	203,545
2020	338,097
2021	46,794
2022	0
2023	0
Thereafter	0
Total	$ 588,436

5. Operating Lease Assets_ (Add

5. Operating Lease Assets: (Additional details related to leases of Balance Sheet) (Details) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Assets
Operating lease assets	$ 421,032	$ 0
Operating Lease
Assets
Operating lease assets	421,032
Total lease assets	421,032
Current
Operating lease liabilities	246,243
Noncurrent
Operating lease liabilities	177,432
Total lease liabilities	$ 423,675

5. Operating Lease Assets _ (Sc

5. Operating Lease Assets : (Schedule of Minimum Lease Payments) (Details)	Jun. 30, 2019USD ($)
Operating Lease
2019	$ 132,507
2020	270,982
2021	35,748
2022	11,916
2023	0
Thereafter	0
Total future lease payments	451,153
Less: imputed interest	(27,478)
Total	$ 423,675
Weighted Average Remaining Lease Term (years) Operating leases	2 years
Weighted Average Discount Rate Operating leases	6.20%

6. Notes Payable and Interest_3

6. Notes Payable and Interest Expense (Details) - USD ($)	Nov. 14, 2018	Jul. 26, 2019	Mar. 31, 2016	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018	Mar. 31, 2018	Feb. 28, 2018
Debt Instrument [Line Items]
Interest expense				$ 89,855	$ 109,635	$ 130,992	$ 167,124
Debt, principal amount								$ 1,080,000
Maximum [Member]
Debt Instrument [Line Items]
Debt, principal amount										$ 750,000
Bdc Term Loan [Member]
Debt Instrument [Line Items]
Maturity date						Sep. 15, 2019
Stated rate				20.00%		20.00%		20.00%
Bdc Term Loan [Member] | Subsequent Event [Member]
Debt Instrument [Line Items]
Maturity date		Oct. 15, 2021
Acoa Note [Member]
Debt Instrument [Line Items]
Maturity date						May 1, 2021
Svb Working Capital Line Of Credit Facility [Member]
Debt Instrument [Line Items]
Maturity date						Mar. 30, 2018
Maximum current borrowing capacity			$ 2,000,000
Commitment percentage per annum			0.50%
Debt instrument, term						2 years
Capitalized debt issuance costs									$ 42,287
Amortization of deferred financing costs						$ 42,287
Svb Working Capital Line Of Credit Facility [Member] | Minimum [Member] | Prime Rate [Member]
Debt Instrument [Line Items]
Basis spread on interest rate			(1.75%)
Svb Working Capital Line Of Credit Facility [Member] | Maximum [Member] | Prime Rate [Member]
Debt Instrument [Line Items]
Basis spread on interest rate			3.75%
Wintrust Loan [Member]
Debt Instrument [Line Items]
Borrowing under Facility	$ 1,000,000
Proceeds from loan re-finance	$ 1,000,000
Wintrust Loan [Member] | Prime Rate [Member]
Debt Instrument [Line Items]
Basis spread on interest rate	1.50%
Related Party Notes [Member]
Debt Instrument [Line Items]
Debt, principal amount				$ 2,500,000		$ 2,500,000
Stated rate				15.00%		15.00%
Prepayment penalty, interest rate						2.00%

6. Notes Payable and Interest_4

6. Notes Payable and Interest Expense: (Schedule of Notes Payable) (Details) - USD ($)	6 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Total Debt	$ 4,016,590	$ 1,473,918
Less current portion	(849,531)	(1,279,590)
Long-term debt, net of current portion	$ 3,167,059	$ 194,328
Bdc Term Loan [Member]
Debt Instrument [Line Items]
Maturity date	Sep. 15, 2019
Interest Rate	20.00%	20.00%
Total Debt	$ 257,701	$ 252,837
Acoa Note [Member]
Debt Instrument [Line Items]
Maturity date	May 1, 2021
Total Debt	$ 130,935	$ 141,081
Wintrust Bank [Member]
Debt Instrument [Line Items]
Maturity date	Nov. 1, 2021
Interest Rate	6.75%	6.75%
Total Debt	$ 1,000,000	$ 1,000,000
Related Party Note [Member]
Debt Instrument [Line Items]
Interest Rate	15.00%	15.00%
Total Debt	$ 2,627,954	$ 80,000
Related Party Note [Member] | Minimum [Member]
Debt Instrument [Line Items]
Maturity date	Mar. 31, 2021
Related Party Note [Member] | Maximum [Member]
Debt Instrument [Line Items]
Maturity date	Jun. 30, 2021

7. Stockholders' Equity (Detail

7. Stockholders' Equity (Details)	Mar. 11, 2019USD ($)employeeitem$ / sharesshares	Feb. 12, 2019USD ($)employeeitem$ / sharesshares	Jan. 07, 2019USD ($)employee$ / sharesshares	Jan. 02, 2019USD ($)$ / sharesshares	Nov. 06, 2018shares	Aug. 29, 2018USD ($)$ / sharesshares	Jun. 01, 2018USD ($)employeeitem$ / sharesshares	May 07, 2018USD ($)employeeitem$ / sharesshares	Feb. 07, 2018USD ($)employee$ / sharesshares	Jan. 08, 2018USD ($)employeeitem$ / sharesshares	Jan. 02, 2018USD ($)employeeitem$ / sharesshares	May 17, 2019USD ($)employeeitem$ / sharesshares	Mar. 31, 2019USD ($)$ / sharesshares	Feb. 25, 2019USD ($)employeeitem$ / sharesshares	Feb. 18, 2019USD ($)employeeitem$ / sharesshares	Jan. 21, 2019USD ($)employeeitem$ / sharesshares	Oct. 19, 2018USD ($)$ / sharesshares	Sep. 30, 2018USD ($)shares	Apr. 16, 2018USD ($)employeeitem$ / sharesshares	Mar. 26, 2018USD ($)employeeitem$ / sharesshares	Feb. 23, 2018shares	Feb. 15, 2018USD ($)employeeitem$ / sharesshares	Jan. 29, 2018USD ($)employeeitem$ / sharesshares	Jun. 30, 2019USD ($)$ / sharesshares	Mar. 31, 2019USD ($)$ / shares	Jun. 30, 2018USD ($)$ / shares	Mar. 31, 2018USD ($)shares	Jun. 30, 2019USD ($)$ / sharesshares	Jun. 30, 2018USD ($)$ / shares	Sep. 30, 2018shares	Dec. 31, 2018USD ($)$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, par value | $ / shares																								$ 0.001				$ 0.001			$ 0.001
Common stock, shares authorized | shares																								100,000,000				100,000,000			100,000,000
Loss on conversion of debt | $																		$ 41,902
Equity payable | $																								$ 100,862				$ 100,862			$ 100,862
Shares issued | shares					8,426	24,792											84,679	5,775,000
Shares issued, price per share | $ / shares						$ 0.48											$ 1.20									$ 1			$ 1
Proceeds from issuance of common stock, gross | $						$ 11,875											$ 101,615	$ 5,775,000
Number of warrant exercise | shares					25,000
Volatility rate																												81.67%	101.94%
Restricted stock units amortization | $																															37,249
Board compensation | $																															260,000
Stock based compensation expense | $																									$ 65,000			$ 180,749			$ 260,000
Related Party Note [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Conversion of stock, amount converted | $																		1,000,000
Accrued interest | $																		$ 47,583
Shares issued | shares																		1,047,583
Warrants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issuance of common stock for options exercised, Shares | shares																					25,000
Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of employees that exercised vested stock options | employee									1
Issuance of common stock for options exercised, Shares | shares																															37,292
Shares issued | shares									12,500												1,808						2,018,125			5,775,000	5,775,000
Shares issued, price per share | $ / shares									$ 0.78
Proceeds from issuance of common stock, gross | $																											$ 2,018,125
Proceeds from stock options exercised | $									$ 9,595
Warrant Issuance2 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrants outstanding | shares																								234,500				234,500
Warrants outstanding, per share | $ / shares																								$ 1				$ 1
Warrant Issuance1 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrants outstanding | shares																								432,500				432,500
Warrants outstanding, per share | $ / shares																								$ 1.20				$ 1.20
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issuance of common stock for options exercised, Shares | shares																												0			0
Options granted | shares																												294,448			0
Stock based compensation expense | $																								$ 0		$ 8,702		$ 65,002	$ 30,546
Restricted Stock Units (RSUs) [Member] | Four independent directors
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted | shares				222,224									72,224
Restricted stock units granted value | $				$ 260,000									$ 65,000
Share price | $ / shares				$ 1.17									$ 0.90												$ 0.90
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issuance of common stock for options exercised, Shares | shares																												0			12,500
Number of employees, options granted | employee	1	1	1				1	1		1	2	3		1	1	1			1	1		1	1
Options granted | shares	50,000	150,000	10,000				10,000	10,000		50,000	10,000	775,000		50,000	15,000	15,000			50,000	300,000		100,000	20,000					2,065,000			855,000
Weighted average grant date fair value | $ / shares	$ 1	$ 1	$ 1.17				$ 1.12	$ 0.90		$ 1.20	$ 1.20	$ 1.04		$ 1	$ 1.05	$ 1.17			$ 1.06	$ 1.10		$ 1.12	$ 1.03
Monthly installments in which options vest, after initial vesting Anniversary	48	48	48				48	48		48	48	48		48	48	48			48	48		48	48
Volatility rate	90.90%	90.79%	90.82%				95.44%	101.42%		104.06%	104.04%	80.17%		90.88%	90.88%	90.75%			102.07%	101.94%		103.60%	103.49%
Call option value, price per share | $ / shares	$ 0.75	$ .75	$ .88				$ 0.87	$ .72		$ 0.97	$ .97	$ .72		$ .75	$ .84	$ .88			$ .85	$ 0.88		$ .91	$ .83
Call option value | $	$ 37,688	$ 113,046	$ 8,821				$ 8,705	$ 7,231		$ 48,682	$ 9,729	$ 1,283,178		$ 37,697	$ 12,537	$ 13,239			$ 42,693	$ 265,575		$ 90,904	$ 16,690
Weighted average grant date fair value | $ / shares																												$ .73
Weighted average exercise price | $ / shares																								$ 1.04				$ 1.04
Stock based compensation expense | $																								$ 495,805		$ 154,902		$ 611,552	$ 407,744

7. Stockholders' Equity_ Stock

7. Stockholders' Equity: Stock Option Activitiy (Details) - Employee Stock Option [Member] - shares	Mar. 11, 2019	Feb. 12, 2019	Jan. 07, 2019	Jun. 01, 2018	May 07, 2018	Jan. 08, 2018	Jan. 02, 2018	May 17, 2019	Feb. 25, 2019	Feb. 18, 2019	Jan. 21, 2019	Apr. 16, 2018	Mar. 26, 2018	Feb. 15, 2018	Jan. 29, 2018	Jun. 30, 2019	Dec. 31, 2018
Outstanding at Beginning of Period			5,012,218			6,818,948	6,818,948				5,012,218				6,818,948	5,012,218	6,818,948
Granted	50,000	150,000	10,000	10,000	10,000	50,000	10,000	775,000	50,000	15,000	15,000	50,000	300,000	100,000	20,000	2,065,000	855,000
Exercised																0	(12,500)
Forfeit/canceled																(524,848)	(1,566,589)
Expired																(444,652)	(1,082,641)
Outstanding at End of Period																6,107,718	5,012,218

7. Stockholders' Equity_ Stoc_2

7. Stockholders' Equity: Stock Based Compensation Expense - Stock Option (Details) - USD ($)	3 Months Ended			6 Months Ended		12 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense		$ 65,000		$ 180,749		$ 260,000
Employee Stock Option [Member]
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 495,805		$ 154,902	611,552	$ 407,744
Employee Stock Option [Member] | General And Administrative Expense [Member]
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	438,283		62,187	490,037	217,851
Employee Stock Option [Member] | Cost Of Sales [Member]
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	26,152		55,617	58,097	124,097
Employee Stock Option [Member] | Research And Development Expense [Member]
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 31,370		$ 37,098	$ 63,418	$ 65,796

7. Stockholders' Equity_ Valuat

7. Stockholders' Equity: Valuation Assumptions (Details)	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Share-based Payment Arrangement [Abstract]
Risk-free interest rate	2.25%	2.68%
Expected life (years)	6 years	6 years
Expected dividend yield	0.00%	0.00%
Expected volatility	81.67%	101.94%

7. Stockholders' Equity_ Restri

7. Stockholders' Equity: Restricted Stock Unit Activity (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected to vest at end	957,248
Vested at end	957,248
Unvested at end	957,248
Unrecognized expense at end	$ 0
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding at Beginning of Period	662,800	662,800
Awarded	294,448	0
Released	0	0
Canceled/forfeited/expired	0	0
Outstanding at End of Period	957,248	662,800

7. Stockholders' Equity_ Stoc_3

7. Stockholders' Equity: Stock Based Compensation Expense - Restricted Stock (Details) - USD ($)	3 Months Ended			6 Months Ended		12 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense		$ 65,000		$ 180,749		$ 260,000
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 0		$ 8,702	65,002	$ 30,546
Restricted Stock Units (RSUs) [Member] | General And Administrative Expense [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 0		$ 8,702	$ 65,002	$ 30,546

8. Fair Value Measurements (Det

8. Fair Value Measurements (Details) - Fair Value Measurements Nonrecurring [Member] - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Fair Value Inputs Level1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Goodwill	$ 0	$ 0
Intangibles, net	0	0
Fair Value Inputs Level2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Goodwill	0	0
Intangibles, net	0	0
Fair Value Inputs Level3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Goodwill	537,550	537,550
Intangibles, net	1,741,092	1,781,448
Goodwill [Member] | Change During Period Fair Value Disclosure [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Gain (Loss) from fair value measurement	0	0
Intangible Assets [Member] | Change During Period Fair Value Disclosure [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Gain (Loss) from fair value measurement	$ 0	$ 0

9. Commitments and Contingenc_2

9. Commitments and Contingencies (Details)	Aug. 14, 2019USD ($)
Commitments and Contingencies Disclosure [Abstract]
Settlement of claim	$ 300,000

10. Related Party Transactions

10. Related Party Transactions (Details) - USD ($)	6 Months Ended
	Jun. 30, 2019	Dec. 31, 2018	Feb. 28, 2018
Related Party Transaction [Line Items]
Debt, principal amount		$ 1,080,000
Due date	Mar. 31, 2020
Interest rate	15.00%
Maximum [Member]
Related Party Transaction [Line Items]
Debt, principal amount			$ 750,000
Related Party Notes [Member]
Related Party Transaction [Line Items]
Debt, principal amount	$ 2,500,000
Prepayment penalty, interest rate	2.00%
Due date	Mar. 31, 2021
Interest rate	15.00%
Conversion of principal and accrued interest for common stock	$ 3,082,916
Warrants exercise price	$ 1.25
Related Party Notes [Member] | Common Stock
Related Party Transaction [Line Items]
Number common stock issued	3,082,916

11. Subsequent Events (Details)

11. Subsequent Events (Details) - USD ($)	1 Months Ended		6 Months Ended
	Jul. 31, 2019	Jul. 26, 2019	Jun. 30, 2019
Bdc Term Loan [Member]
Maturity date			Sep. 15, 2019
Subsequent Event [Member] | Bdc Term Loan [Member]
Maturity date		Oct. 15, 2021
Private Placement [Member] | Directors
Common stock issued in private placement	7,000,000
Proceeds from Issuance of Private Placement	$ 4,882,916
Share price	$ 1
Warrant term	2 years
Warrants exercise price	$ 1.25