SharpSpring (SHSP) 10-Q 14 Nov 14 2014 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Sep. 30, 2014	Nov. 07, 2014
Document And Entity Information [Abstract]	'	'
Document Type	'10-Q	'
Amendment Flag	'false	'
Document Period End Date	30-Sep-14	'
Entity Registrant Name	'SMTP, Inc.	'
Entity Central Index Key	'0001506439	'
Current Fiscal Year End Date	'--12-31	'
Document Fiscal Period Focus	'Q3	'
Document Fiscal Year Focus	'2014	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Shares Outstanding	'	5,447,543

CONSOLIDATED_BALANCE_SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)	Sep. 30, 2014	Dec. 31, 2013
Assets	'	'
Cash and cash equivalents	$5,875,325	$1,731,243
Accounts receivable	74,561	25,024
Deferred income taxes	340,681	183,435
Income taxes receivable	453,446	'
Other current assets	174,319	116,522
Total current assets	6,918,332	2,056,224
Property and equipment, net of accumulated depreciation of $220,945 and $145,261	282,455	327,342
Goodwill	8,407,227	'
Other intangible assets, net of accumulated amortization of $25,667 and $9,000	3,544,333	'
Deferred income taxes	60,598	50,099
Deposits	38,645	29,995
Total assets	19,251,590	2,463,660
Current liabilities:	'	'
Deferred revenue	478,883	334,328
Income taxes payable	'	144,280
Allowance for refunds and chargebacks	2,799	2,965
Accounts Payable	262,434	79,574
Accrued expenses and other current liabilities	164,096	27,174
Total current liabilities	908,212	588,321
Earn out liability	6,963,000	'
Total liabilities	7,871,212	588,321
Shareholders' equity:	'	'
Preferred stock, $0.001 par value, 5,000,000 shares authorized, no shares issued or outstanding at September 30, 2014 and December 31, 2013	'	'
Common stock, $0.001 par value, 50,000,000 shares authorized, 5,022,599 and 3,127,598 shares issued and outstanding at September 30, 2014 and December 31, 2013, respectively	5,022	3,126
Additional paid in capital	11,375,356	2,241,749
Accumulated deficit	'	-369,536
Total shareholders' equity	11,380,378	1,875,339
Total liabilities and shareholders' equity	$19,251,590	$2,463,660

CONSOLIDATED_BALANCE_SHEETS_Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Sep. 30, 2014	Dec. 31, 2013
CONSOLIDATED BALANCE SHEETS [Abstract]	'	'
Property and equipment, accumulated depreciation	$220,945	$145,261
Other intangible assets, accumulated amortization	$34,667	$9,000
Preferred Stock, par value per share	$0.00	$0.00
Preferred Stock, shares authorized	5,000,000	5,000,000
Preferred Stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common shares, par value per share	$0.00	$0.00
Common shares, shares authorized	50,000,000	50,000,000
Common shares, shares issued	5,022,599	3,127,598
Common shares, shares outstanding	5,022,599	3,127,598

CONSOLIDATED_STATEMENTS_OF_OPE

CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract]	'	'	'	'
Net revenue	$1,631,244	$1,468,962	$4,602,068	$4,233,547
Cost of services	340,649	255,095	1,019,032	782,849
Gross profit	1,290,595	1,213,867	3,583,036	3,450,698
Operating expenses:	'	'	'	'
Sales and marketing	380,172	295,005	776,485	677,365
Research and development	141,923	81,226	361,932	186,196
General and administrative	973,016	358,788	2,020,617	1,159,254
Amortization expense	25,667	'	25,667	232
Total operating expenses	1,520,778	735,019	3,184,701	2,023,047
Operating income (loss):	-230,183	478,848	398,335	1,427,651
Other income (expense):	'	'	'	'
Interest income	367	'	521	'
Loss on disposal of fixed assets	-10,172	'	-10,172	'
Total other income (expense)	-9,805	'	-9,651	'
Income (loss) before income taxes	-239,988	478,848	388,684	1,427,651
Provision (benefit) for income tax	-142,160	159,261	111,972	497,058
Net income (loss)	($97,828)	$319,587	$276,712	$930,593
Net income per share:	'	'	'	'
Basic	($0.02)	$0.11	$0.06	$0.31
Diluted	($0.02)	$0.10	$0.06	$0.30
Weighted average common shares outstanding:	'	'	'	'
Basic	5,020,005	3,026,032	4,761,469	2,986,273
Diluted	5,020,005	3,139,992	4,814,774	3,130,291

CONSOLIDATED_STATEMENTS_OF_CAS

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Cash flows from operating activities:	'	'
Net income	$276,712	$930,593
Adjustments to reconcile net income to net cash provided by operating activities:	'	'
Depreciation and amortization	117,236	56,207
Excess tax benefits from share-based payment arrangements	-84,264	-20,825
Non-cash stock compensation	453,320	490,258
Allowance for refunds and chargebacks	-166	-6,404
Deferred income taxes	-167,745	-31,758
(Gain)/loss on disposal of property and equipment	10,172	'
Changes in operating assets and liabilities:	'	'
Accounts receivable	-34,912	-8,946
Other assets	-30,337	-28,517
Net change income taxes payable	-513,462	23,259
Accounts Payable	182,860	-26,090
Accrued expenses and other current liabilities	42,522	-19,692
Deferred revenue	89,114	-30,671
Net cash provided by operating activities	341,050	1,327,414
Cash flows from investing activities	'	'
Acquisition of business, net of cash acquired	-4,926,317	'
Purchases of property and equipment	-50,788	-262,740
Proceeds from the sale of property and equipment	5,130	'
Net cash used in investing activities	-4,971,975	-262,740
Cash flows provided by (used in) financing activities:	'	'
Dividends to shareholders	-1,806,095	-880,770
Proceeds from issuance of common stock	10,507,801	277,949
Excess tax benefits from share-based payment arrangements	73,301	20,825
Net cash provided by (used in) financing activities	8,775,007	-581,996
Change in cash and cash equivalents	4,144,082	482,678
Cash and cash equivalents, beginning of period	1,731,243	784,001
Cash and cash equivalents, end of period	5,875,325	1,266,679
Supplemental cash flow disclosures:	'	'
Cash paid for income taxes	$803,500	$545,000

Organization

Organization	9 Months Ended
	Sep. 30, 2014
Organization [Abstract]	'
Organization	'
	Note 1:  Organization
	Background
	The Company was originally incorporated in Massachusetts on October 14, 1998 as EMUmail, Inc. and changed its name on April 1, 2010 to SMTP.com, Inc. The Company has historically focused on the execution of email delivery for marketing and enterprise application customers but has broadened its product set through acquisitions to include marketing automation and e-mail campaign management products.The Company's services are marketed directly by the Company and through reseller partners.
	On November 23, 2010, the Company formed a Delaware corporation, SMTP, Inc. for the purpose of changing the structure of the Company from a Massachusetts corporation to a Delaware corporation and to increase the number of authorized shares outstanding. Also on November 23, 2010, the Company entered into a Merger agreement between SMTP, Inc. and SMTP.com, Inc. whereby the surviving corporation would be SMTP, Inc. (the “Surviving Corporation”), the newly formed Delaware corporation.
	On December 26, 2013, the Company filed a Certificate of Amendment to its Certificate of Incorporation (the "Certificate of Amendment"), with the Secretary of State of the State of Delaware, to effect a 1-for-5 reverse stock split of its common stock (the "Reverse Stock Split"). As a result of the Reverse Stock Split, every five shares of the Company's pre-Reverse Stock Split common stock was combined and reclassified into one share of its common stock. All data for common stock, options and warrants have been adjusted to reflect the 1-for-5 reverse stock split for all periods presented. In addition, all common stock prices, and per share data for all periods presented have been adjusted to reflect the 1-for-5 reverse stock split.
	On August 15, 2014, the Company acquired substantially all the assets and assumed the liabilities of SharpSpring LLC. See Note 3 for more discussion.  On October 17, 2014, the Company acquired substantially all the assets and assumed the liabilities of the GraphicMail, group companies.  See Note 11 for more discussion.

Summary_of_Significant_Account

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2014
Summary of Significant Accounting Policies [Abstract]	'
Summary of Significant Accounting Policies	'
	Note 2: Summary of Significant Accounting Policies
	Basis of Presentation
	Our Consolidated Financial Statements include the accounts of SMTP, Inc. and our subsidiary (“SMTP”). Our Consolidated Financial Statements reflect the elimination of all significant inter-company accounts and transactions. On August 15, 2014, we completed the purchase of SharpSpring LLC. The financial results of the entity have been included in our Consolidated Financial Statements from the date of acquisition (Note 3).
	In the opinion of management, the accompanying unaudited consolidated financial statements include all adjustments, consisting of only normal recurring accruals, necessary for a fair statement of consolidated financial position, results of operations, and cash flows. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the financial statements and the accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2013 filed with the SEC on March 31, 2014. The accounting policies are described in the “Notes to Financial Statements” in the 2013 Annual Report on Form 10-K and updated, as necessary, in this Form 10-Q. The year-end balance sheet data presented for comparative purposes was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States. The results of operations for the three and nine months ended September 30, 2014 are not necessarily indicative of the operating results for the full year or for any other subsequent interim period.
	Certain reclassifications have been made to prior period reported amounts to conform to current year presentation.
	Credit card fees of $56,297 and $156,736 were reclassified from cost of services to general and administrative expenses for the three and nine months ended September 30, 2013.
	Additionally, the Company prospectively amended the cost categories for certain individuals for the three and nine months ended September 30, 2014 to better reflect the individuals respective departments and roles in the organization.
	Fair Value of Financial Instruments
	U.S. GAAP establishes a fair value hierarchy which has three levels based on the reliability of the inputs to determine the fair value. These levels include: Level 1, defined as inputs such as unadjusted quoted prices in active markets for identical assets or liabilities; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs for use when little or no market data exists, therefore requiring an entity to develop its own assumptions.
	The Company's financial instruments consist of cash, accounts receivable, deposits and accounts payable. The carrying amount of cash, accounts receivable and accounts payable approximates fair value because of the short-term nature of these items.
	Intangibles
	Finite-lived intangible assets include trade names, developed technologies and customer relationships and are amortized on a straight-line basis over their estimated useful lives, for periods ranging from 5 to 11 years. We continually evaluate the reasonableness of the useful lives of these assets. Finite-lived intangibles are tested for recoverability whenever events or changes in circumstances indicate the carrying amounts may not be recoverable. An impairment loss, if any, would be measured as the excess of the carrying value over the fair value determined by discounted future cash flows.
	Goodwill and Impairment
	As of September 30, 2014, we had recorded goodwill of $8,407,227. Goodwill consists of the excess of the purchase price over the fair value of tangible and identifiable intangible net assets acquired in the SharpSpring acquisition. (See Note 7). Under FASB ASC 350-10, goodwill and intangible assets deemed to have indefinite lives are no longer amortized but are subject to annual impairment tests, and tests between annual tests in certain circumstances, based on estimated fair value in accordance with FASB ASC 350-10, and written down when impaired.
	Income Taxes
	Provision for income taxes are based on taxes payable or refundable for the current year and deferred taxes on temporary differences between the amount of taxable income and pretax financial income and between the tax bases of assets and liabilities and their reported amounts in the financial statements. Deferred tax assets and liabilities are included in the financial statements at currently enacted income tax rates applicable to the period in which the deferred tax assets and liabilities are expected to be realized or settled as prescribed in FASB ASC 740, Accounting for Income Taxes. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. A valuation allowance is established to reduce deferred tax assets if it is more likely than not that a deferred tax asset will not be realized.
	To assess the accounting for uncertainty in income taxes recognized in the financial statements, the Company applies a two-step process to determine the amount of tax benefit to be recognized. First, the tax position must be evaluated to determine the likelihood that it will be sustained upon external examination. If the tax position is deemed “more-likely-than-not” to be sustained, the tax position is then assessed to determine the amount of benefit to recognize in the financial statements. The amount of the benefit that may be recognized is the largest amount that has a greater than 50% likelihood of being realized upon ultimate settlement. There are no uncertain tax positions taken by the Company on its tax returns. Tax years subsequent to 2010 remain open to examination by U.S. federal and state tax jurisdictions.
	In determining the quarterly provision for income taxes, the Company uses an estimated annual effective tax rate, statutory tax rates and tax planning opportunities available to the Company in the jurisdictions in which it operates.  This includes recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns to the extent pervasive evidence exists that they will be realized in future periods. The deferred tax balances are adjusted to reflect tax rates by tax jurisdiction, based on currently enacted tax laws, which are expected to be in effect in the years in which the temporary differences are expected to reverse. In accordance with the Company's income tax policy, significant or unusual items are separately recognized in the quarter in which they occur.
	Property and Equipment
	Property and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful life of the assets. Upon retirement or sale, the cost of assets disposed of and the related accumulated depreciation are eliminated from the accounts and any resulting gain or loss is credited or charged to operations. Repairs and maintenance costs are expensed as incurred.
	Property and equipment is as follows:
			September 30,			December 31,
			2014			2013
	Property and equipment, net:
	Leasehold improvements		$	16,245		$	16,245
	Furniture and fixtures			70,706			13,619
	Computer equipment and software			400,996			427,286
	Construction in progress			15,453			15,453
	Total			503,400			472,603
	Less: Accumulated depreciation			(220,945	)		(145,261	)
			$	282,455		$	327,342
	Estimated useful lives are as follows:
	Leasehold improvements	3 - 5 years
	Furniture and fixtures	3 - 5 years
	Computing equipment	3 years
	Software	3 - 5 years
	Depreciation expense for the three and nine months ended September 30, 2014 was $31,435 and $91,570, respectively. Depreciation expense for the three and nine months ended September 30, 2013 was $19,931 and $55,975, respectively.
	Revenue Recognition
	The Company recognizes revenue from its services when it is probable that the economic benefits associated with the transactions will flow to the Company and the amount of revenue can be measured reliably. This is normally demonstrated when: (i) persuasive evidence of an arrangement exists; (ii) the fee is fixed or determinable; (iii) performance of service has been delivered; and (iv) collection is reasonably assured.
	For the Company's internet-based SMTP email delivery product, the services are offered over various contractual periods for a fixed fee that varies based on a maximum volume of transactions. Revenues are typically paid by clients via credit card, check or wire payments at the inception of the contractual period. Revenue is recognized on a straight-line basis over the contractual period. If the customer's transactions exceed contractual volume limitations, overages are charged and recorded in the periods in which the transaction overages occur.
	For the Company's internet-based marketing automation solution, the services are typically offered on a month-to-month basis with a fixed fee charged each month depending on the size of the engagement with the customer.  Monthly fees are recorded as revenue during the month they are earned.  Some customers are charged annually, for which revenues are deferred and recorded ratably over the subscription period.  Additionally, customers are charged an up-front prepayment that is credited back over the course of the first year, which is recorded as revenue ratably over the first year of service.
	The Company offers refunds on a pro-rata basis at any time during the contractual period. The Company also experiences credit card chargebacks relating to cardholder disputes that are commonly experienced by businesses that accept credit cards. The Company makes estimates for refunds and credit card chargebacks based on historical experience.
	Deferred Revenue
	The Company's customers pay for services in advance on a periodic basis (such as monthly, quarterly, annually, or bi-annually). Deferred revenue consists of payments received in advance of the Company's providing the services. Deferred revenues are amortized on a straight-line basis in connection with the contractual period.
	Concentration of Credit Risk and Significant Customers
	Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash, cash equivalents. At September 30, 2014 and December 31, 2013, the Company had cash balances at financial institutions that exceed federally insured limits. The Company maintains its cash balances with accredited financial institutions. The Company does not believe that it is subject to unusual credit risk beyond the normal credit risk associated with commercial banking relationships.
	For the periods ended September 30, 2014, and 2013, there were no customers that accounted for more than 10% of total revenue.
	Cost of Services
	Cost of services consists primarily of the direct labor costs, software costs, and fees paid to resellers of the Company's product.
	Credit Card Processing Fees
	Credit card processing fees are included as a component of general and administrative expenses and are expensed as incurred.
	Advertising Costs
	The Company expenses advertising costs as incurred.
	Research and Development costs
	Research and development cost are charged to expenses when incurred and include salaries and related cost of personnel engaged in research and development activities.
	Net Income Per Share
	Basic net income per share is computed using the weighted average number of common shares outstanding during the period. Diluted net income per share is computed using the weighted average number of common shares and, if dilutive, potential common shares outstanding during the period.
	Recently Issued Accounting Standards
	In May 2014, the FASB and the International Accounting Standards Board (“IASB”) jointly issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), a comprehensive new revenue recognition standard that will supersede nearly all existing revenue recognition guidance. The objective of ASU 2014-09 is that a company will recognize revenue when it transfers 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. ASU 2014-09 will be effective for the first quarter of 2017. An entity can elect to adopt ASU 2014-09 using one of two methods, either full retrospective adoption to each prior reporting period, or recognizing the cumulative effect of adoption at the date of initial application. The Company is in the process of evaluating the new standard and does not know the effect, if any, ASU 2014-09 will have on the Financial Statements or which adoption method will be used.

Acquisition

Acquisition	9 Months Ended
	Sep. 30, 2014
Acquisition [Abstract]	'
Acquisition	'
	Note 3:    Acquisition
	On August 15, 2014, the Company acquired substantially all the assets and assumed the liabilities of SharpSpring LLC, a Delaware limited liability company for a cash payment of $5,000,000 plus potential earn out consideration of $10,000,000 that is contingent on the SharpSpring LLC product achieving certain levels of revenue in 2015.  The earn out consideration, if met, will be paid 60% in cash and 40% in stock in following the audit of the 2015 financial statements. The acquired assets and liabilities were assigned to SMTP's wholly owned subsidiary SharpSpring. Inc. (“SharpSpring”), SharpSpring is a cloud-based marketing automation platform that enables users to connect with customers and build relationships to drive revenue through marketing automation, call tracking and customer relationship management..
	The following table presents the components of the initial purchase price consideration:
	Cash consideration	$		5,000,000
	Earn out liability			6,963,000
	Liabilities assumed			149,841
	Total purchase price	$		12,112,841
	The initial allocation of the purchase price is based on management estimates and assumptions, and other information compiled by management, which utilized established valuation techniques appropriate for the industry; these techniques were the income approach, cost approach or market approach, depending upon which was the most appropriate based on the nature and reliability of the data available. These amounts are provisional and subject to finalization in the next accounting period. The income approach is predicated upon the value of the future cash flows that an asset is expected to generate over its economic life. The cost approach takes into account the cost to replace (or reproduce) the asset and the effects on the assets value of physical, functional and/or economic obsolescence that has occurred with respect to the asset. The market approach is a technique used to estimate value from an analysis of actual transactions or offerings for economically comparable assets available as of the valuation date.
	The following represents the initial allocation of the purchase price to the acquired net tangible and intangible assets acquired and liabilities assumed of SharpSpring.  These amounts are provisional and subject to finalization in future accounting periods.
	Total purchase price	$		12,112,841
	Less:
	Net tangible assets acquired			(135,614	)
	Intangible assets acquired:
	Trade name			(120,000	)
	Developed technologies			(2,130,000	)
	Customer relationships			(1,320,000	)
	Total intangible assets			(3,570,000	)
	Goodwill	$		8,407,227
	Acquired intangible assets include trade names which are to be amortized over the useful life of five years, and technology and customer relationships which are to be amortized over the useful life of 11 years.
	Goodwill of $8,407,227 was recorded. Goodwill will not be amortized but instead tested for impairment at least annually (more frequently if certain indicators are present). The $8,407,227of goodwill as of September 30, 2014 is not expected to be deductible for tax purposes. Goodwill arose primarily as a result of the expected future growth of the SharpSpring product and the assembled workforce.
	Pursuant to the Asset Purchase Agreement,  the Company is liable for an earn out of up to $10,000,000, payable 60% in cash and 40% in stock, depending on SharpSpring achieving certain revenue levels in 2015. The Company utilized the income approach to estimate the fair value  of the earn out. The Company analyzed scenarios and determined a probability weighting for each scenario. The Company calculated the earn out payments based on the respective revenues for each scenario and then weighted the resulting payment by the probabilities of achieving each scenario.  In order to calculate an appropriate risk-adjusted discount rate for the earn out, the Company calculated the weighted average cash-flows of the business based on the three scenarios and their respective weightings. The Company then calculated an implied internal rate of return (“IRR”) of 18.9%, which is the discount rate necessary in order to reconcile the weighed cash-flows of the three scenarios to the total purchase price including the earn out payment.  The earn out payment was then discounted by the 18.9% IRR. Based on these methods and the Company's assessment of meeting those revenue levels in 2015, an earn out liability of $6,963,000was recorded as a liability during purchase accounting. The company will continue to refine the projection of SharpSpring revenue levels in 2015 compared to the earn out revenue levels and adjust the liability accordingly through the consolidated statement of operations.
	The acquisition was accounted for as a business purchase pursuant to Accounting Standard Codification (“ASC”) Topic 805, Business Combinations.  Under this ASC, acquisition and integration costs are not included as components of consideration transferred, but are accounted for as expenses in the period in which the costs are incurred.
	The initial purchase price allocation is subject to change as the Company finalizes its determination relating to the valuation of net assets acquired from SharpSpring. Accordingly, future adjustments may impact the initial amount of goodwill represented in the table above.
	The following table summarizes selected unaudited pro forma consolidated statements of operations data for the nine months ended September 30, 2014 as if the acquisition had been completed at the beginning of the year.
		Nine Months Ended
		September 30, 2014
	Net revenues	$	4,910,008
	Operating income (loss)	$	354,308
	This selected  unaudited pro forma consolidated financial data is included only for the purpose of illustration and does not necessarily indicate what the operating results would have been if the acquisition had been completed on that date. Moreover, this information does not indicate what the Company's future operating results will be. This information includes actual data in 2014 for the period subsequent to the date of the acquisition. The consolidated statement of operations for the nine months ended September 30, 2014 include net revenue and net loss of $159,784 and $84,721 , respectively, attributable to SharpSpring since the acquisition.

Commitments_and_Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2014
Commitments and Contingencies [Abstract]	'
Commitments and Contingencies	'
	Note 4:  Commitments and Contingencies
	Litigation
	The Company may from time to time be involved in legal proceedings arising from the normal course of business.
	We are not a party to any litigation of a material nature. In October 2013, we received a notification from RPost Holdings, Inc. whereby RPost Holdings, Inc. claims that we are infringing on their patent rights with certain of our products and services. Although we remain in the investigative stages of the merit to this claim, we believe that our Company and other companies were practicing the technology that RPost claims its patents cover before the first priority date of RPost's patents. On that basis, we believe that the patents cannot cover our technology and remain valid. To our knowledge, we have not been named in any proceeding with respect to this matter.
	Operating Leases and Service Contracts
	The Company rents its facilities on a month-to-month or quarter-to-quarter basis. Most of its service contracts are also on a month-to-month basis. However, the Company entered into several non-cancelable service contracts in, 2013.
	Future minimum payments under non-cancelable service contracts are as follows as of September 30:
	2014	$	23,194
	2015		93,281
	2016		44,331
	2017		—
	2018		—
	Thereafter		—
		$	160,806

Shareholders_Equity

Shareholders' Equity	9 Months Ended
	Sep. 30, 2014
Shareholders' Equity [Abstract]	'
Shareholders' Equity	'
	Note 5:  Shareholders' Equity
	During 2012, the Company paid $386,563 of dividends in excess of retained earnings which created an accumulated deficit of $386,563 as of December 31, 2012 in the statement of Stockholders' equity. According to SAB Topic 3.C. Question 1, for SEC registrants, if an accumulated deficit exists, the charge for dividends paid should be to additional paid in capital. Therefore, the Company reclassified $386,563 of dividends from accumulated deficit to additional paid in capital for the three month period ended March 31, 2014. Management has concluded that the reclassification of dividends would not require a retrospective adjustment to the financial statements presented in the form 10 – K for the years ended December 31, 2013 and 2012. The reclassification has no impact on the historical net income, total equity, total assets and total liabilities.
	For the three and nine months ending September 30, 2014, the Company paid quarterly dividends of $602,562 and $1,806,094, respectively. For the three and nine months ending September 30, 2013, the Company paid quarterly dividends of $347,388 and $880,770, respectively.
	On December 26, 2013, the Company filed with the Securities Exchange Commission a Form S-1 registration statement. The S-1 became effective on January 30, 2014. Pursuant to the Form S-1, in February, 2014, the Company registered and sold 1,840,000 shares of common stock, $0.001 par value, in exchange for $11,500,000 in gross proceeds.

Net_Income_Per_Share

Net Income Per Share	9 Months Ended
	Sep. 30, 2014
Net Income Per Share [Abstract]	'
Net Income Per Share	'
	Note 6: Net Income Per Share
	Computation of net income per share is as follows:
		Three Months Ended September 30,				Nine Months Ended September 30,
		2014		2013		2014		2013
	Net income (loss)	$	-97,828	$	319,587	$	276,712	$	930,593
	Basic weighted average common shares outstanding		5,020,005		3,026,032		4,761,469		2,986,273
	Add incremental shares for:
	Warrants		-		5,290		27,128		9,277
	Stock options		-		108,670		26,177		134,741
	Diluted weighted average common shares outstanding		5,020,005		3,139,992		4,814,774		3,130,291
	Net income (loss) per share:
	Basic	$	-0.02	$	0.11	$	0.06	$	0.31
	Diluted	$	-0.02	$	0.1	$	0.06	$	0.3
	There were no dilutive securities included in the computation of diluted earnings per share for the three months ended September 30, 2014 because their inclusion would be anti-dilutive.

Goodwill_and_Other_Intangible_

Goodwill and Other Intangible Assets	9 Months Ended
	Sep. 30, 2014
Goodwill and Intangible Assets Disclosure [Abstract]	'
Goodwill and Other Intangible Assets	'
	Note 7: Goodwill and Other Intangible Assets
	The following tables set forth the initial information for intangible assets subject to amortization and for intangible assets not subject to amortization. These amounts are provisional and subject to finalization in future accounting periods.
						As of September 30, 2014
			Gross Carrying		Accumulated		Net Carrying		Weighted Average
			Amount		Amortization		Value		Remaining Life
	Amortized intangible assets:
	Trade names		$	120,000	$	1,000	$	119,000		4.9
	Technology			2,130,000		9,667		2,120,333		10.9
	Customer relationships			1,320,000		15,000		1,305,000		10.9
	Domain names			9,000		9,000		—		—
	Unamortized intangible assets:		$	3,579,000	$	34,667	$	3,544,333
	Goodwill							8,407,227
	Total intangible assets						$	11,951,560
	Estimated amortization expense for 2014 and subsequent years is as follows:
	2014	$	77,000
	2015		285,000
	2016		436,000
	2017		446,000
	2018		460,000
	2019 and thereafter		1,866,000
		$	3,570,000
	Amortization expense for the three and nine months ended September 30, 2014 was $25,677. Amortization expense for the three and nine months ended September 30, 2013 was $0 and $232, respectively.

StockBased_Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2014
Stock-Based Compensation [Abstract]	'
Stock-Based Compensation	'
	Note 8:  Stock-Based Compensation
	From time to time, the Company grants stock option awards to officers and employees under the 2010 Stock Incentive Plan ("the Plan") which, as amended, provides us with the ability to issue options on up to 1,000,000 common shares. On April 28, 2014, the Company's Board of Directors approved an increase of the shares of common stock under the Company's 2010 Employee Stock Plan to 1,350,000 shares. At September 30, 2014, the Company had 740,640 outstanding options issued under the plan.
	Such awards are valued based on the grant date fair value of the instruments, net of estimated forfeitures, using a Black-Scholes option pricing model with the following assumptions:
		Nine Months Ended September 30,
		2014		2013
	Volatility	73% - 76	%	66% - 68%
	Risk-free interest rate	1.76%-1.93	%	1.74% - 2.01%
	Expected term	6.25 years		6.25 - 7.25 years
	The volatility used was based on historical volatility of similar sized companies, in a similar industry, due to lack of historical data of the Company's stock price. The risk free interest rate was determined based on treasury securities with maturities equal to the expected term of the underlying award. The expected term was determined based on the simplified method outlined in Staff Accounting Bulletin No. 110.
	Stock option awards are expensed on a straight-line basis over the requisite service period. During the three and nine months ended September 30, 2014, the Company recognized expense of $133,613 and $408,544, respectively, associated with stock option awards. During the three and nine months ended September 30, 2013, the Company recognized expense of $71,237 and $131,381, respectively, associated with stock option awards. At September 30, 2014, future stock compensation expense (net of estimated forfeitures) not yet recognized was $1,256,891 and will be recognized over a weighted average remaining vesting period of 3.17 years.
	The following summarizes stock option activity for the nine months ended September 30, 2014:
						Weighted		Weighted		Weighted
						Average		Average		Average
			Number of			Exercise		Fair		Remaining
			Shares			Price		Value		Contractual Life
	Outstanding at December 31, 2013			627,807		$	4.83	$	2.92
	Granted at market price			260,400			6.65
	Exercised			(47,867	)		0.47
	Forfeited			(99,700	)		6.72
	Outstanding at September 30, 2014			740,640			5.44		3.4		8.7
	Exercisable			185,869		$	5.11	$	3.02		8.1
	The outstanding shares at December 31, 2013 were adjusted to reflect options that were issued but not included in the prior periods tables. This does not impact stock compensation expense.
	The intrinsic value of the Company's stock options outstanding was $711,408 at September 30, 2014.
	The Company may also grant shares of stock to directors, consultants and employees from time to time, as payment for services rendered or for other employee matters.  Such shares may have a vesting schedule or may be immediately vested.  During the three and nine months ended September 30, 2014, the Company granted 5,171 and 7,133 shares of stock, respectively,  that were immediately vested.  During the three and nine months ended September 30, 2013, the Company granted 75,370 and 148,118 shares of stock, respectively,  that were immediately vested.

Income_Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2014
Income Taxes [Abstract]	'
Income Taxes	'
	Note 9: Income Taxes
	During the quarter ended September 30, 2014, the Company recorded an income tax benefit of $142,160, which was comprised of a current benefit of $47,553 and a deferred benefit of $94,607.

Warrants

Warrants	9 Months Ended
	Sep. 30, 2014
Warrants [Abstract]	'
Warrants	'
	Note 10: Warrants
	On January 30, 2014, in connection with an $11.5 million financing transaction, the Company issued 80,000 warrants to purchase common stock at an exercise price of $7.81 per share with a term of 5 years. For the three and nine months ended September 30, 2014, a net expense of $0 and $184,415 was recorded against proceeds under additional paid in capital, associated with these awards. The fair value of the warrants was determined using the Black-Scholes option valuation model. The warrants expire on January 30, 2020 and have a remaining contractual life of 4.33 years as of September 30, 2014. These warrants are not exercisable prior to January 30, 2015.
	The following table summarizes information about the Company's warrants at September 30, 2014:
								Weighted
								Average
					Weighted			Remaining
		Number of			Average			Contractual Term		Intrinsic
		Units			Exercise Price			(in years)		Value
	Outstanding at December 31, 2013		120,973		$	4.92
	Granted		80,000			7.81
	Outstanding at September 30, 2014		200,973		$	6.07			3.4	$	65,463
	Exercisable at September 30, 2014		120,973		$	6.07			1.7	$	178,463
	The warrants were valued using the Black-Scholes pricing model with the following assumptions:
		Nine Months Ended September 30,
		2014			2013
	Volatility		72	%		66% -67	%
	Risk-free interest rate		0.54	%		0.31% -0.37	%
	Expected term		2.5 years			2.5 years

Subsequent_Events

Subsequent Events	9 Months Ended
	Sep. 30, 2014
Subsequent Events [Abstract]	'
Subsequent Events	'
	Note 11:  Subsequent Events
	On August 14, 2014 we announced the acquisition and on October 17, 2014, we acquired 100% of the equity interest owned, directly or indirectly, in GraphicMail group companies (“GraphicMail”) consisting of InterInbox SA, a Swiss corporation, ERNEPH 2012A (Pty) Ltd. dba ISMS, a South African limited company, ERNEPH 2012B (Pty) Ltd. dba GraphicMail South Africa, a South African limited company, and Quattro Hosting LLC, a Delaware limited liability company. The acquisition consideration consisted of $5.1 million, $2.5 million of which was paid in cash and $2.6 million of which was paid in stock, plus potential earn out consideration of $0.8 million based on achieving certain revenue levels in 2015 (paid 50% in cash and 50% in stock). On October 17, 2014, the Company issued 423,426 unregistered shares of common stock which represents the $2.6 million portion of the consideration. GraphicMail operates as an email service provider, enabling customers to create content and manage emails being sent to customers and distribution lists.
	This acquisition will be accounted for under the acquisition method of accounting.  The accounting for this acquisition was incomplete at the time the Consolidated Financial Statements were issued.  Accordingly, it is impracticable for us to make certain business combination disclosures, such as the acquisition date fair value of assets acquired and liabilities assumed, assets or liabilities arising from contingencies, the amount of goodwill, and intangibles acquired.

Summary_of_Significant_Account1

Summary of Significant Accounting Policies (Policy)	9 Months Ended
	Sep. 30, 2014
Summary of Significant Accounting Policies [Abstract]	'
Basis of Presentation	'
	Basis of Presentation
	Our Consolidated Financial Statements include the accounts of SMTP, Inc. and our subsidiary (“SMTP”). Our Consolidated Financial Statements reflect the elimination of all significant inter-company accounts and transactions. On August 15, 2014, we completed the purchase of SharpSpring LLC. The financial results of the entity have been included in our Consolidated Financial Statements from the date of acquisition (Note 3).
	In the opinion of management, the accompanying unaudited consolidated financial statements include all adjustments, consisting of only normal recurring accruals, necessary for a fair statement of consolidated financial position, results of operations, and cash flows. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the financial statements and the accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2013 filed with the SEC on March 31, 2014. The accounting policies are described in the “Notes to Financial Statements” in the 2013 Annual Report on Form 10-K and updated, as necessary, in this Form 10-Q. The year-end balance sheet data presented for comparative purposes was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States. The results of operations for the three and nine months ended September 30, 2014 are not necessarily indicative of the operating results for the full year or for any other subsequent interim period.
	Certain reclassifications have been made to prior period reported amounts to conform to current year presentation.
	Credit card fees of $56,297 and $156,736 were reclassified from cost of services to general and administrative expenses for the three and nine months ended September 30, 2013.
	Additionally, the Company prospectively amended the cost categories for certain individuals for the three and nine months ended September 30, 2014 to better reflect the individuals respective departments and roles in the organization.
Fair Value of Financial Instruments	'
	Fair Value of Financial Instruments
	U.S. GAAP establishes a fair value hierarchy which has three levels based on the reliability of the inputs to determine the fair value. These levels include: Level 1, defined as inputs such as unadjusted quoted prices in active markets for identical assets or liabilities; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs for use when little or no market data exists, therefore requiring an entity to develop its own assumptions.
	The Company's financial instruments consist of cash, accounts receivable, deposits and accounts payable. The carrying amount of cash, accounts receivable and accounts payable approximates fair value because of the short-term nature of these items.
Intangibles	'
	Intangibles
	Finite-lived intangible assets include trade names, developed technologies and customer relationships and are amortized on a straight-line basis over their estimated useful lives, for periods ranging from 5 to 11 years. We continually evaluate the reasonableness of the useful lives of these assets. Finite-lived intangibles are tested for recoverability whenever events or changes in circumstances indicate the carrying amounts may not be recoverable. An impairment loss, if any, would be measured as the excess of the carrying value over the fair value determined by discounted future cash flows.
Goodwill and Impairment	'
	Goodwill and Impairment
	As of September 30, 2014, we had recorded goodwill of $8,407,227. Goodwill consists of the excess of the purchase price over the fair value of tangible and identifiable intangible net assets acquired in the SharpSpring acquisition. (See Note 7). Under FASB ASC 350-10, goodwill and intangible assets deemed to have indefinite lives are no longer amortized but are subject to annual impairment tests, and tests between annual tests in certain circumstances, based on estimated fair value in accordance with FASB ASC 350-10, and written down when impaired.
Income Taxes	'
	Income Taxes
	Provision for income taxes are based on taxes payable or refundable for the current year and deferred taxes on temporary differences between the amount of taxable income and pretax financial income and between the tax bases of assets and liabilities and their reported amounts in the financial statements. Deferred tax assets and liabilities are included in the financial statements at currently enacted income tax rates applicable to the period in which the deferred tax assets and liabilities are expected to be realized or settled as prescribed in FASB ASC 740, Accounting for Income Taxes. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. A valuation allowance is established to reduce deferred tax assets if it is more likely than not that a deferred tax asset will not be realized.
	To assess the accounting for uncertainty in income taxes recognized in the financial statements, the Company applies a two-step process to determine the amount of tax benefit to be recognized. First, the tax position must be evaluated to determine the likelihood that it will be sustained upon external examination. If the tax position is deemed “more-likely-than-not” to be sustained, the tax position is then assessed to determine the amount of benefit to recognize in the financial statements. The amount of the benefit that may be recognized is the largest amount that has a greater than 50% likelihood of being realized upon ultimate settlement. There are no uncertain tax positions taken by the Company on its tax returns. Tax years subsequent to 2010 remain open to examination by U.S. federal and state tax jurisdictions.
	In determining the quarterly provision for income taxes, the Company uses an estimated annual effective tax rate, statutory tax rates and tax planning opportunities available to the Company in the jurisdictions in which it operates.  This includes recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns to the extent pervasive evidence exists that they will be realized in future periods. The deferred tax balances are adjusted to reflect tax rates by tax jurisdiction, based on currently enacted tax laws, which are expected to be in effect in the years in which the temporary differences are expected to reverse. In accordance with the Company's income tax policy, significant or unusual items are separately recognized in the quarter in which they occur.
Property and Equipment	'
	Property and Equipment
	Property and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful life of the assets. Upon retirement or sale, the cost of assets disposed of and the related accumulated depreciation are eliminated from the accounts and any resulting gain or loss is credited or charged to operations. Repairs and maintenance costs are expensed as incurred.
	Property and equipment is as follows:
			September 30,			December 31,
			2014			2013
	Property and equipment, net:
	Leasehold improvements		$	16,245		$	16,245
	Furniture and fixtures			70,706			13,619
	Computer equipment and software			400,996			427,286
	Construction in progress			15,453			15,453
	Total			503,400			472,603
	Less: Accumulated depreciation			(220,945	)		(145,261	)
			$	282,455		$	327,342
	Estimated useful lives are as follows:
	Leasehold improvements	3 - 5 years
	Furniture and fixtures	3 - 5 years
	Computing equipment	3 years
	Software	3 - 5 years
Revenue Recognition	'
	Revenue Recognition
	The Company recognizes revenue from its services when it is probable that the economic benefits associated with the transactions will flow to the Company and the amount of revenue can be measured reliably. This is normally demonstrated when: (i) persuasive evidence of an arrangement exists; (ii) the fee is fixed or determinable; (iii) performance of service has been delivered; and (iv) collection is reasonably assured.
	For the Company's internet-based SMTP email delivery product, the services are offered over various contractual periods for a fixed fee that varies based on a maximum volume of transactions. Revenues are typically paid by clients via credit card, check or wire payments at the inception of the contractual period. Revenue is recognized on a straight-line basis over the contractual period. If the customer's transactions exceed contractual volume limitations, overages are charged and recorded in the periods in which the transaction overages occur.
	For the Company's internet-based marketing automation solution, the services are typically offered on a month-to-month basis with a fixed fee charged each month depending on the size of the engagement with the customer.  Monthly fees are recorded as revenue during the month they are earned.  Some customers are charged annually, for which revenues are deferred and recorded ratably over the subscription period.  Additionally, customers are charged an up-front prepayment that is credited back over the course of the first year, which is recorded as revenue ratably over the first year of service.
	The Company offers refunds on a pro-rata basis at any time during the contractual period. The Company also experiences credit card chargebacks relating to cardholder disputes that are commonly experienced by businesses that accept credit cards. The Company makes estimates for refunds and credit card chargebacks based on historical experience.
Deferred Revenue	'
	Deferred Revenue
	The Company's customers pay for services in advance on a periodic basis (such as monthly, quarterly, annually, or bi-annually). Deferred revenue consists of payments received in advance of the Company's providing the services. Deferred revenues are amortized on a straight-line basis in connection with the contractual period.
Concentration of Credit Risks and Significant Customers	'
	Concentration of Credit Risk and Significant Customers
	Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash, cash equivalents. At September 30, 2014 and December 31, 2013, the Company had cash balances at financial institutions that exceed federally insured limits. The Company maintains its cash balances with accredited financial institutions. The Company does not believe that it is subject to unusual credit risk beyond the normal credit risk associated with commercial banking relationships.
	For the periods ended September 30, 2014, and 2013, there were no customers that accounted for more than 10% of total revenue.
Cost of Services	'
	Cost of Services
	Cost of services consists primarily of the direct labor costs, software costs, and fees paid to resellers of the Company's product.
Credit Card Processing Fees	'
	Credit Card Processing Fees
	Credit card processing fees are included as a component of general and administrative expenses and are expensed as incurred.
Advertising Costs	'
	Advertising Costs
	The Company expenses advertising costs as incurred.
Research and Development costs	'
	Research and Development costs
	Research and development cost are charged to expenses when incurred and include salaries and related cost of personnel engaged in research and development activities.
Net Income Per Share	'
	Net Income Per Share
	Basic net income per share is computed using the weighted average number of common shares outstanding during the period. Diluted net income per share is computed using the weighted average number of common shares and, if dilutive, potential common shares outstanding during the period.
Recently Issued Accounting Standards	'
	Recently Issued Accounting Standards
	In May 2014, the FASB and the International Accounting Standards Board (“IASB”) jointly issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), a comprehensive new revenue recognition standard that will supersede nearly all existing revenue recognition guidance. The objective of ASU 2014-09 is that a company will recognize revenue when it transfers 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. ASU 2014-09 will be effective for the first quarter of 2017. An entity can elect to adopt ASU 2014-09 using one of two methods, either full retrospective adoption to each prior reporting period, or recognizing the cumulative effect of adoption at the date of initial application. The Company is in the process of evaluating the new standard and does not know the effect, if any, ASU 2014-09 will have on the Financial Statements or which adoption method will be used.

Summary_of_Significant_Account2

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2014
Summary of Significant Accounting Policies [Abstract]	'
Schedule of Property and Equipment	'
	Property and equipment is as follows:
			September 30,			December 31,
			2014			2013
	Property and equipment, net:
	Leasehold improvements		$	16,245		$	16,245
	Furniture and fixtures			70,706			13,619
	Computer equipment and software			400,996			427,286
	Construction in progress			15,453			15,453
	Total			503,400			472,603
	Less: Accumulated depreciation			(220,945	)		(145,261	)
			$	282,455		$	327,342
	Estimated useful lives are as follows:
	Leasehold improvements	3 - 5 years
	Furniture and fixtures	3 - 5 years
	Computing equipment	3 years
	Software	3 - 5 years

Acquisition_Tables

Acquisition (Tables)	9 Months Ended
	Sep. 30, 2014
Acquisition [Abstract]	'
Schedule of Components of Initial Purchase Price consideration	'
	The following table presents the components of the initial purchase price consideration:
	Cash consideration	$		5,000,000
	Earn out liability			6,963,000
	Liabilities assumed			149,841
	Total purchase price	$		12,112,841
Schedule of Initial Allocation of Purchase Price to Acquired Net Tangible and Intangible Assets Acquired and Liabilities Assumed	'
	The following represents the initial allocation of the purchase price to the acquired net tangible and intangible assets acquired and liabilities assumed of SharpSpring.  These amounts are provisional and subject to finalization in future accounting periods.
	Total purchase price	$		12,112,841
	Less:
	Net tangible assets acquired			(135,614	)
	Intangible assets acquired:
	Trade name			(120,000	)
	Developed technologies			(2,130,000	)
	Customer relationships			(1,320,000	)
	Total intangible assets			(3,570,000	)
	Goodwill	$		8,407,227
Schedule of Pro-forma Consolidated Results of Operations	'
	The following table summarizes selected unaudited pro forma consolidated statements of operations data for the nine months ended September 30, 2014 as if the acquisition had been completed at the beginning of the year.
		Nine Months Ended
		September 30, 2014
	Net revenues	$	4,910,008
	Operating income (loss)	$	354,308

Commitments_and_Contingencies_

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2014
Commitments and Contingencies [Abstract]	'
Schedule Of Future Minimum Payments under Non-cancelable Service Contracts	'
	Future minimum payments under non-cancelable service contracts are as follows as of September 30:
	2014	$	23,194
	2015		93,281
	2016		44,331
	2017		—
	2018		—
	Thereafter		—
		$	160,806

Net_Income_Per_Share_Tables

Net Income Per Share (Tables)	9 Months Ended
	Sep. 30, 2014
Net Income Per Share [Abstract]	'
Schedule of Computation of Net Income Per Share	'
	Computation of net income per share is as follows:
		Three Months Ended September 30,				Nine Months Ended September 30,
		2014		2013		2014		2013
	Net income (loss)	$	-97,828	$	319,587	$	276,712	$	930,593
	Basic weighted average common shares outstanding		5,020,005		3,026,032		4,761,469		2,986,273
	Add incremental shares for:
	Warrants		-		5,290		27,128		9,277
	Stock options		-		108,670		26,177		134,741
	Diluted weighted average common shares outstanding		5,020,005		3,139,992		4,814,774		3,130,291
	Net income (loss) per share:
	Basic	$	-0.02	$	0.11	$	0.06	$	0.31
	Diluted	$	-0.02	$	0.1	$	0.06	$	0.3

Goodwill_and_Other_Intangible_1

Goodwill and Other Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2014
Goodwill and Intangible Assets Disclosure [Abstract]	'
Schedule of Information for Intangible Assets Subject to Amortization and Intangible Assets Not Subject to Amortization	'
	The following tables set forth the initial information for intangible assets subject to amortization and for intangible assets not subject to amortization. These amounts are provisional and subject to finalization in future accounting periods.
						As of September 30, 2014
			Gross Carrying		Accumulated		Net Carrying		Weighted Average
			Amount		Amortization		Value		Remaining Life
	Amortized intangible assets:
	Trade names		$	120,000	$	1,000	$	119,000		4.9
	Technology			2,130,000		9,667		2,120,333		10.9
	Customer relationships			1,320,000		15,000		1,305,000		10.9
	Domain names			9,000		9,000		—		—
	Unamortized intangible assets:		$	3,579,000	$	34,667	$	3,544,333
	Goodwill							8,407,227
	Total intangible assets						$	11,951,560
Schedule of Estimated Amortization Expense	'
	Estimated amortization expense for 2014 and subsequent years is as follows:
	2014	$	77,000
	2015		285,000
	2016		436,000
	2017		446,000
	2018		460,000
	2019 and thereafter		1,866,000
		$	3,570,000

StockBased_Compensation_Tables

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2014
Stock-Based Compensation [Abstract]	'
Schedule of Fair Value Assumptions used in valuing Stock Options	'
	Such awards are valued based on the grant date fair value of the instruments, net of estimated forfeitures, using a Black-Scholes option pricing model with the following assumptions:
		Nine Months Ended September 30,
		2014		2013
	Volatility	73% - 76	%	66% - 68%
	Risk-free interest rate	1.76%-1.93	%	1.74% - 2.01%
	Expected term	6.25 years		6.25 - 7.25 years
Schedule of Stock Option Activity	'
	The following summarizes stock option activity for the nine months ended September 30, 2014:
						Weighted		Weighted		Weighted
						Average		Average		Average
			Number of			Exercise		Fair		Remaining
			Shares			Price		Value		Contractual Life
	Outstanding at December 31, 2013			627,807		$	4.83	$	2.92
	Granted at market price			260,400			6.65
	Exercised			(47,867	)		0.47
	Forfeited			(99,700	)		6.72
	Outstanding at September 30, 2014			740,640			5.44		3.4		8.7
	Exercisable			185,869		$	5.11	$	3.02		8.1

Warrants_Tables

Warrants (Tables)	9 Months Ended
	Sep. 30, 2014
Warrants [Abstract]	'
Summary of Warrants Activity	'
	The following table summarizes information about the Company's warrants at September 30, 2014:
								Weighted
								Average
					Weighted			Remaining
		Number of			Average			Contractual Term		Intrinsic
		Units			Exercise Price			(in years)		Value
	Outstanding at December 31, 2013		120,973		$	4.92
	Granted		80,000			7.81
	Outstanding at September 30, 2014		200,973		$	6.07			3.4	$	65,463
	Exercisable at September 30, 2014		120,973		$	6.07			1.7	$	178,463
Summary of Assumptions Used to Value Warrants	'
	The warrants were valued using the Black-Scholes pricing model with the following assumptions:
		Nine Months Ended September 30,
		2014			2013
	Volatility		72	%		66% -67	%
	Risk-free interest rate		0.54	%		0.31% -0.37	%
	Expected term		2.5 years			2.5 years

Organization_Details

Organization (Details)	1 Months Ended
	Dec. 31, 2013
Organization [Abstract]	'
Reverse stock split, conversion ratio	0.2

Summary_of_Significant_Account3

Summary of Significant Accounting Policies (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013
Property, Plant and Equipment [Line Items]	'	'	'	'	'
Property and equipment, gross	$503,400	'	$503,400	'	$472,603
Less: Accumulated depreciation	-220,945	'	-220,945	'	-145,261
Property and equipment, net	282,455	'	282,455	'	327,342
Depreciation expense	31,435	19,931	91,570	55,975	'
Credit card processing fees included as a component of general and administrative expenses	'	56,297	'	156,736	'
Number of major customers accounting for more than 10% of revenue	'	'	0	0	'
Goodwill	8,407,227	'	8,407,227	'	'
Leasehold improvements [Member]	'	'	'	'	'
Property, Plant and Equipment [Line Items]	'	'	'	'	'
Property and equipment, gross	16,245	'	16,245	'	16,245
Leasehold improvements [Member] | Minimum [Member]	'	'	'	'	'
Property, Plant and Equipment [Line Items]	'	'	'	'	'
Estimated useful lives	'	'	'3 years	'	'
Leasehold improvements [Member] | Maximum [Member]	'	'	'	'	'
Property, Plant and Equipment [Line Items]	'	'	'	'	'
Estimated useful lives	'	'	'5 years	'	'
Furniture and fixtures [Member]	'	'	'	'	'
Property, Plant and Equipment [Line Items]	'	'	'	'	'
Property and equipment, gross	70,706	'	70,706	'	13,619
Furniture and fixtures [Member] | Minimum [Member]	'	'	'	'	'
Property, Plant and Equipment [Line Items]	'	'	'	'	'
Estimated useful lives	'	'	'3 years	'	'
Furniture and fixtures [Member] | Maximum [Member]	'	'	'	'	'
Property, Plant and Equipment [Line Items]	'	'	'	'	'
Estimated useful lives	'	'	'5 years	'	'
Computer equipment and software [Member]	'	'	'	'	'
Property, Plant and Equipment [Line Items]	'	'	'	'	'
Property and equipment, gross	400,996	'	400,996	'	427,286
Estimated useful lives	'	'	'3 years	'	'
Construction in progress [Member]	'	'	'	'	'
Property, Plant and Equipment [Line Items]	'	'	'	'	'
Property and equipment, gross	$15,453	'	$15,453	'	$15,453
Software [Member] | Minimum [Member]	'	'	'	'	'
Property, Plant and Equipment [Line Items]	'	'	'	'	'
Estimated useful lives	'	'	'3 years	'	'
Software [Member] | Maximum [Member]	'	'	'	'	'
Property, Plant and Equipment [Line Items]	'	'	'	'	'
Estimated useful lives	'	'	'5 years	'	'

Acquisition_Details

Acquisition (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013	Sep. 30, 2014	Sep. 30, 2014	Aug. 15, 2014	Sep. 30, 2014	Sep. 30, 2014	Aug. 15, 2014	Aug. 15, 2014	Aug. 15, 2014
			Trade Names [Member]	Customer Relationships [Member]	Sharp Spring Llc Asset Purchase Agreement [Member]	Sharp Spring Llc Asset Purchase Agreement [Member]	Sharp Spring Llc Asset Purchase Agreement [Member]	Sharp Spring Llc Asset Purchase Agreement [Member]	Sharp Spring Llc Asset Purchase Agreement [Member]	Sharp Spring Llc Asset Purchase Agreement [Member]
								Trade Names [Member]	Developed Technology Rights [Member]	Customer Relationships [Member]
Business Acquisition [Line Items]	'	'	'	'	'	'	'	'	'	'
Potential earn out consideration	'	'	'	'	$10,000,000	'	'	'	'	'
Cash consideration	'	'	'	'	5,000,000	'	'	'	'	'
Earn out liability	'	'	'	'	6,963,000	'	'	'	'	'
Liabilities assumed	'	'	'	'	149,841	'	'	'	'	'
Total purchase price	'	'	'	'	12,112,841	'	'	'	'	'
Allocation of the purchase price to the acquired net tangible and intangible assets acquired and liabilities assumed	'	'	'	'	'	'	'	'	'	'
Total purchase price	'	'	'	'	12,112,841	'	'	'	'	'
Less:	'	'	'	'	'	'	'	'	'	'
Net tangible assets acquired	'	'	'	'	-135,614	'	'	'	'	'
Intangible assets acquired	'	'	'	'	-3,570,000	'	'	-120,000	-2,130,000	-1,320,000
Goodwill	8,407,227	'	'	'	8,407,227	'	'	'	'	'
Useful life	'	'	'4 years 10 months 24 days	'10 years 10 months 24 days	'	'	'	'5 years	'11 years	'11 years
Potential earn out consideration paid in cash (as a percent)	'	'	'	'	60.00%	'	'	'	'	'
Potential earn out consideration paid in stock (as a percent)	'	'	'	'	40.00%	'	'	'	'	'
Internal rate of return (as a percent)	'	'	'	'	18.90%	'	'	'	'	'
Pro-forma information	'	'	'	'	'	'	'	'	'	'
Net revenues	'	'	'	'	'	'	4,910,008	'	'	'
Operating income (loss)	'	'	'	'	'	'	354,308	'	'	'
Revenues since acquisition date	'	'	'	'	'	159,784	'	'	'	'
Net loss since acquisition date	'	'	'	'	'	$84,721	'	'	'	'

Commitments_and_Contingencies_1

Commitments and Contingencies (Schedule of Future Minimum Contract Payments) (Details) (USD $)	Sep. 30, 2014
Commitments and Contingencies [Abstract]	'
2014	$23,194
2015	93,281
2016	44,331
2017	'
2018	'
Thereafter	'
Total Future Minimum Payments	$160,806

Shareholders_Equity_Details

Shareholders' Equity (Details) (USD $)	1 Months Ended	3 Months Ended		9 Months Ended		12 Months Ended
	Dec. 31, 2013	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2012
Class of Stock [Line Items]	'	'	'	'	'	'
Amount of dividends paid reclassified from accumulated deficit to additional paid in capital, during the period	'	'	'	'	'	$386,563
Stock options exercised	'	'	'	47,867	'	'
Common stock, par value	$0.00	$0.00	'	$0.00	'	$0.00
Total number of common stock shares to be registered with SEC under Form S-1	1,840,000	'	'	'	'	'
Proceeds from issuance of common stock	11,500,000	'	'	10,507,801	277,949	'
Cash dividends paid	'	$602,562	$347,388	$1,806,095	$880,770	'

Net_Income_Per_Share_Details

Net Income Per Share (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Net Income Per Share [Abstract]	'	'	'	'
Net income (loss)	($97,828)	$319,587	$276,712	$930,593
Basic weighted average common shares outstanding	5,020,005	3,026,032	4,761,469	2,986,273
Add incremental shares for:	'	'	'	'
Warrants	'	5,290	27,128	9,277
Stock options	'	108,670	26,177	134,741
Diluted weighted average common shares outstanding	5,020,005	3,139,992	4,814,774	3,130,291
Net income (loss) per share:	'	'	'	'
Basic	($0.02)	$0.11	$0.06	$0.31
Diluted	($0.02)	$0.10	$0.06	$0.30
Dilutive securities (in shares)	0	'	'	'

Goodwill_and_Other_Intangible_2

Goodwill and Other Intangible Assets (Narrative) (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Goodwill and Intangible Assets Disclosure [Abstract]	'	'	'	'
Amortization expense	$25,667	'	$25,667	$232

Goodwill_and_Other_Intangible_3

Goodwill and Other Intangible Assets (Schedule of Intangible Assets) (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013	Sep. 30, 2014	Sep. 30, 2014	Sep. 30, 2014	Sep. 30, 2014
			Trade Name [Member]	Technology [Member]	Customer Relationships [Member]	Domain Names [Member]
Finite-Lived Intangible Assets [Line Items]	'	'	'	'	'	'
Gross Carrying Amount	$3,579,000	'	$120,000	$2,130,000	$1,320,000	$9,000
Accumulated Amortization	34,667	9,000	1,000	9,667	15,000	9,000
Net Carrying Value	3,544,333	'	119,000	2,120,333	1,305,000	'
Goodwill	8,407,227	'	'	'	'	'
Total intangible assets	$11,951,560	'	'	'	'	'
Weighted Average Remaining Life	'	'	'4 years 10 months 24 days	'10 years 10 months 24 days	'10 years 10 months 24 days	'

Goodwill_and_Other_Intangible_4

Goodwill and Other Intangible Assets (Schedule of Estimated Amortization Expense) (Details) (USD $)	Sep. 30, 2014
Estimated amortization expense [Abstract]	'
2014	$77,000
2015	285,000
2016	436,000
2017	446,000
2018	460,000
2019 and thereafter	1,866,000
Total Future Amortization Expense	$3,570,000

StockBased_Compensation_Narrat

Stock-Based Compensation (Narrative) (Details) (USD $)	3 Months Ended		9 Months Ended			3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Apr. 28, 2014
						Stock Options [Member]	Stock Options [Member]	Stock Options [Member]	Stock Options [Member]	Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'	'	'	'	'	'	'
Shares authorized	'	'	'	'	'	1,000,000	'	1,000,000	'	1,350,000
Outstanding options issued	740,640	'	740,640	'	627,807	'	'	'	'	'
Stock option compensation expense recognized	'	'	'	'	'	$13,361	$71,237	$408,544	$131,381	'
Unrecognized compensation cost	'	'	'	'	'	1,256,891	'	1,256,891	'	'
Recognition period	'	'	'	'	'	'	'	'3 years 2 months 1 day	'	'
Aggregate intrinsic value	'	'	'	'	'	$711,408	'	$711,408	'	'
Shares of stock granted to directors, consultants and employees	5,171	75,370	260,400	148,118	'	'	'	'	'	'

StockBased_Compensation_Schedu

Stock-Based Compensation (Schedule of Fair Value Assumptions used in valuing Stock Options) (Details) (Stock Options [Member])	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Volatility, minimum	73.00%	66.00%
Volatility, maximum	76.00%	68.00%
Risk-free interest rate, minimum	1.76%	1.74%
Risk-free interest rate, maximum	1.93%	2.01%
Expected term	'6 years 3 months	'
Minimum [Member]	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Expected term	'	'6 years 3 months
Maximum [Member]	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Expected term	'	'7 years 3 months

StockBased_Compensation_Schedu1

Stock-Based Compensation (Schedule of Stock Option Activity) (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013
Number of Shares	'	'	'	'	'
Outstanding, Beginning	'	'	627,807	'	'
Granted	5,171	75,370	260,400	148,118	'
Exercised	'	'	-47,867	'	'
Forfeited	'	'	-99,700	'	'
Outstanding, Ending	740,640	'	740,640	'	'
Exercisable	185,869	'	185,869	'	'
Weighted Average Exercise Price	'	'	'	'	'
Outstanding, Beginning	'	'	$4.83	'	'
Granted	'	'	$6.65	'	'
Exercised	'	'	$0.47	'	'
Forfeited	'	'	$6.72	'	'
Outstanding, Ending	$5.44	'	$5.44	'	'
Exercisable	$5.11	'	$5.11	'	'
Weighted Average Fair Value	'	'	'	'	'
Outstanding	$3.40	'	$3.40	'	$2.92
Exercisable	$3.02	'	$3.02	'	'
Weighted Average Remaining Contractual Life	'	'	'	'	'
Outstanding	'	'	'8 years 8 months 12 days	'	'
Exercisable	'	'	'8 years 1 month 6 days	'	'

Income_Taxes_Details

Income Taxes (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Income Taxes [Abstract]	'	'	'	'
Current benefit	$47,553	'	'	'
Deferred benefit	94,607	'	'	'
Income tax benefit	$142,160	($159,261)	($111,972)	($497,058)

Warrants_Narrative_Details

Warrants (Narrative) (Details) (Warrants Issued January 2014 Consulting Agreement [Member], USD $)	1 Months Ended	3 Months Ended	9 Months Ended
	Jan. 31, 2014	Sep. 30, 2014	Sep. 30, 2014	Jan. 30, 2014
Warrants Issued January 2014 Consulting Agreement [Member]	'	'	'	'
Class of Warrant or Right [Line Items]	'	'	'	'
Number of warrants issued	80,000	'	'	'
Warrant exercise price	'	'	'	$7.81
Warrant term	'5 years	'	'	'
Warrant expiration date	30-Jan-20	'	'	'
Remaining contractual life of warrants	'	'	'4 years 3 months 29 days	'
Total amount of financing transaction	$11,500,000	'	'	'
Adjustment to additional paid in capital from issuance of warrants	'	$0	$184,415	'

Warrants_Summary_of_Warrants_A

Warrants (Summary of Warrants Activity) (Details) (Warrant [Member], USD $)	9 Months Ended
	Sep. 30, 2014
Warrant [Member]	'
Warrant activity, number of shares:	'
Outstanding, at the beginning of year	120,973
Granted	80,000
Outstanding, at the end of year	200,973
Exercisable	120,973
Warrant activity, weighted average exercise price:	'
Outstanding, at the beginning of year	$4.92
Granted	$7.81
Outstanding, at the end of year	$6.07
Exercisable	$6.07
Outstanding, remaining contractual term	'3 years 4 months 24 days
Outstanding, intrinsic value	$65,463
Exercisable, weighted average remaining contractual term	'1 year 8 months 12 days
Exercisable, intrinsic value	$178,463

Warrants_Schedule_of_Assumptio

Warrants (Schedule of Assumptions Used to Value Warrants) (Details) (Warrant [Member])	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Warrant [Member]	'	'
Assumptions used in valuing warrants:	'	'
Volatility	72.00%	'
Volatility, minimum	'	66.00%
Volatility, maximum	'	67.00%
Risk-free interest rate	0.54%	'
Risk-free interest rate, minimum	'	0.31%
Risk-free interest rate, maximum	'	0.37%
Expected term	'2 years 6 months	'2 years 6 months

Subsequent_Events_Details

Subsequent Events (Details) (Subsequent Event [Member], GraphicMail [Member], USD $)	0 Months Ended
	Oct. 17, 2014
Subsequent Event [Member] | GraphicMail [Member]	'
Subsequent Event [Line Items]	'
Consideration amount	$5,100,000
Cash paid	2,500,000
Amount paid in stock	2,600,000
Potential earn out consideration amount	800,000
Potential earn out consideration paid in cash (as a percent)	50.00%
Potential earn out consideration paid in stock (as a percent)	50.00%
Ownership percentage	100.00%
Unregistered shares of common stock issued (in shares)	423,426
Unregistered shares of common stock issued	$2,600,000