Liberated Syndication (LSYN) 10-K 31 Mar 17 2016 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2016	Mar. 24, 2017	Jun. 30, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	Liberated Syndication Inc.
Entity Central Index Key	1,667,489
Amendment Flag	false
Document Type	10-K
Document Period End Date	Dec. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Common Stock, Shares Outstanding		20,805,860
Entity Public Float			$ 2,149,245

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2016	Dec. 31, 2015
CURRENT ASSETS:
Cash	$ 4,875,458	$ 2,470,694
Accounts receivable, net	385,335	336,267
Prepaid expenses	44,583	12,500
Total current assets	5,305,376	2,819,461
Property and equipment, net	33,982	21,870
Goodwill	11,484,251	11,484,251
Total assets	16,823,609	14,325,582
CURRENT LIABILITIES:
Accounts payable	536,295	410,434
Accrued expenses	313,586	42,080
Deferred revenue	110,167	146,859
Total current liabilities	960,048	599,373
Total liabilities	960,048	599,373
STOCKHOLDERS' EQUITY
Common stock	20,806	20,806
Additional paid-in capital	25,047,247	25,694,513
Retained Earnings (accumulated deficit)	(9,204,492)	(11,989,110)
Total stockholders' equity	15,863,561	13,726,209
Total liabilities and stockholders' equity	$ 16,823,609	$ 14,325,582

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Dec. 31, 2016	Jul. 20, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 14,000		$ 14,000
Common stock authorized	200,000,000		200,000,000
Common stock par value	$ 0.001		$ 0.001
Common stock outstanding	20,805,860	20,804,850	20,805,860

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Income Statement [Abstract]
Revenue	$ 8,792,208	$ 7,213,088
Cost of Revenue	2,808,481	2,106,937
Gross Profit	5,983,727	5,106,151
OPERATING EXPENSES
Selling expenses	282,954	298,151
General and administrative	2,916,155	1,826,994
Total Operating Expenses	3,199,109	2,125,145
Net income from operations	2,784,618	2,981,006
OTHER INCOME (EXPENSE):
Other income (expense)		(395)
Total Other Income		(395)
Income from operations	2,784,618	2,980,611
Current Income Tax Expense (Benefit)
Deferred Income Tax Expense (Benefit)
Net Income	$ 2,784,618	$ 2,980,611
BASIC AND DILUTED INCOME PER COMMON SHARE	$ 0.13	$ 0.14
BASIC AND DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING	20,805,860	20,805,860

STATEMENT OF STOCKHOLDERS_ EQUI

STATEMENT OF STOCKHOLDERS’ EQUITY - USD ($)	Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Deficit [Member]
Balance at Dec. 31, 2014	$ 20,806	$ 27,190,935	$ (14,969,721)
Balance, shares at Dec. 31, 2014	20,805,860
Distribution to FAB Universal Corp		(1,496,422)
Net income			2,980,611
Balance at Dec. 31, 2015	$ 20,806	25,694,513	(11,989,110)
Balance, shares at Dec. 31, 2015	20,805,860
Distribution to FAB Universal Corp		(647,266)
Net income			2,784,618
Balance at Dec. 31, 2016	$ 20,806	$ 25,047,247	$ (9,204,492)
Balance, shares at Dec. 31, 2016	20,805,860

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Cash Flows from Operating Activities
Net income	$ 2,784,618	$ 2,980,611
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	24,679	22,762
Change in assets and liabilities:
Accounts receivable	(49,068)	(99,985)
Prepaid expenses	(32,083)	615
Accounts payable	125,861	106,888
Accrued expense	271,507	8,822
Deferred revenue	(36,693)	(109,396)
Net Cash Provided by Operating Activities	3,088,821	2,910,317
Cash Flows from Investing Activities:
Purchase of property & equipment	(36,791)
Net Cash Used in Investing Activities	(36,791)
Cash Flows from Financing Activities:
Payments to FAB Universal Corp	(647,266)	(1,496,422)
Net Cash Used in Financing Activities	(647,266)	(1,496,422)
Net Increase in Cash	2,404,764	1,413,895
Cash at Beginning of Period	2,470,694	1,056,799
Cash at End of Period	4,875,458	2,470,694
Supplemental Disclosures of Cash Flow Information
Cash paid during the periods for: Interest
Cash paid during the periods for: Income taxes

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization Restatement/Reverse Spin-off The basic and diluted earnings per share and weighted average basic and diluted common shares outstanding for the year ended December 31, 2015 gives effect to the 20,805,860 common shares issued upon the spin-off of the Company from FAB accounted for as a reverse spin-off. Consolidation Accounting Estimates Cash and Cash Equivalents Accounts Receivable Depreciation Long-lived intangible assets Software Development Costs - We account for software development costs, including costs to develop software products or the software component of products to be marketed to external users, as well as software programs to be used solely to meet our internal needs in accordance with ASC Topic 985 Software and ASC Topic 350 Intangibles – Goodwill and Other. We have determined that technological feasibility for our products to be marketed to external users was reached shortly before the release of those products. As a result, the development costs incurred after the establishment of technological feasibility and before the release of those products were not material, and accordingly, were expensed as incurred. In addition, costs incurred during the application development stage for software programs to be used solely to meet our internal needs were not material. Goodwill Advertising Costs Fair Value of Financial Instruments • Level 1. Observable inputs such as quoted prices in active markets for identical assets or liabilities; • 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 require the reporting entity to develop its own assumptions. Unless otherwise disclosed, the fair value of the Company’s financial instruments including cash, accounts receivable, prepaid expenses, and accounts payable and accrued expenses approximates their recorded values due to their short-term maturities. Revenue Recognition We evaluate whether it is appropriate to record the gross amount of product sales and related costs or the net amount earned as commissions. Generally, when we are primarily obligated in a transaction, are subject to inventory risk, have latitude in establishing prices and selecting suppliers, or have several but not all of these indicators, revenue is recorded at the gross sale price. We generally record the net amounts as commissions earned if we are not primarily obligated and do not have latitude in establishing prices. Such amounts earned are determined using a fixed percentage, a fixed-payment schedule, or a combination of the two. Publishing services are billed on a month to month basis. The Company recognizes revenue from providing digital media publishing services when the services are provided and when collection is probable. The Company recognizes revenue from the insertion of advertisements in digital media, as the digital media with the advertisement is downloaded and collection is probable. The Company recognizes revenue from the sale of apps and premium subscriptions when sold and collection is probable. The Company facilitates the sale of producers’ premium content through the sale of subscriptions. The amount earned per transaction is fixed and the producers determine the price for the sale of the subscription, and the Company earns a percentage of what the customer pays. Accordingly, the Company reports premium subscription revenue at net. Leases Research and Development - Earnings Per Share Income Taxes Recently Enacted Accounting Standards - In 2015, the FASB issued an amended standard requiring that we classify all deferred tax assets and liabilities as non-current on the balance sheet instead of separating deferred taxes into current and non-current. The amended standard is effective for us beginning in the first quarter of 2017. The amended standard may be adopted on either a prospective or retrospective basis. We do not expect that the adoption of this standard will have a significant impact on our financial position or results of operations. In February 2016, the FASB issued changes to the accounting for leases that primarily affect presentation and disclosure requirements. The new standard will require the recognition of a right to use asset and underlying lease liability for operating leases with an initial life in excess of one year. This standard is effective for us beginning in the first quarter of 2019. We have not yet determined the impact of the new standard on our consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting, which changes how companies account for certain aspects of share-based payments to employees. The new guidance requires all income tax effects of awards to be recognized in the income statement when the awards vest or are settled, allows an employer to repurchase more of an employee’s shares than previously allowed for tax withholding purposes without triggering liability accounting, allows a company to make a policy election to account for forfeitures as they occur, and eliminates the requirement that excess tax benefits be realized before companies can recognize them. The new guidance also requires excess tax benefits and tax shortfalls to be presented on the cash flow statement as an operating activity rather than as a financing activity, and clarifies that cash paid to a tax authority when shares are withheld to satisfy its statutory income tax withholding obligation are to be presented as a financing activity. The standard is effective for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Early adoption is permitted. Recent accounting pronouncements issued by the FASB did not or are not believed by management to have a material impact on the Company’s present or future financial statements.

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	12 Months Ended
	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	NOTE 2 - PROPERTY & EQUIPMENT The following is a summary of property and equipment at: Life December 31, 2016 December 31, 2015 Furniture, fixtures, and equipment 2-10 yrs $ 145,553 $ 110,415 145,553 110,415 Less: Accumulated depreciation (111,571) (88,545) Property & equipment, net $ 33,982 $ 21,870 Depreciation expense for the periods ended December 31, 2016 and 2015 was $24,679 and $22,762, respectively.

GOODWILL

GOODWILL	12 Months Ended
	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL	NOTE 3 - GOODWILL Impairment - During 2016, Libsyn management performed its annual test of impairment of goodwill assessing the qualitative factors and determined it is more than likely than not that the fair value of the reporting unit is greater than or equal to the carrying value of the reporting unit. Thus, not requiring further testing. Impairment - During 2015, Libsyn management performed its annual test of impairment of goodwill by comparing the net carrying value of the intangible asset with the fair value of the reporting units. Based upon the results of this analysis, it was determined that the goodwill was not impaired. Goodwill For the Years Ended December 31, 2016 December 31, 2015 Goodwill at beginning of period $ 11,484,251 $ 11,484,251 Impairment - - Goodwill at end of period $ 11,484,251 $ 11,484,251

CAPITAL STOCK

CAPITAL STOCK	12 Months Ended
	Dec. 31, 2016
Stockholders' Equity Note [Abstract]
CAPITAL STOCK	NOTE 4 - CAPITAL STOCK Common Stock Reverse Spin-Off —

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2016
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 5 - INCOME TAXES The Company accounts for income taxes in accordance with FASB ASC Topic 740, Accounting for Income Taxes which requires the Company to provide a net deferred tax asset or liability equal to the expected future tax benefit or expense of temporary reporting differences between book and tax accounting and any available operating loss or tax credit carryforwards. At December 31, 2016 and 2015, the total of all deferred tax assets was $3,569,533 and $4,700,750, respectively, and the total of the deferred tax assets related to goodwill was $2,086,340 and $1,575,232, respectively. The amount of and ultimate realization of the benefits from the deferred tax assets for income tax purposes is dependent, in part, upon the tax laws in effect, the Company’s future earnings, and other future events, the effects of which cannot be determined. Because of the uncertainty surrounding the realization of the deferred tax assets the Company has established a valuation allowance of $3,569,533 and $4,700,750 for the years ended December 31, 2016 and 2015. The change in the valuation allowance for the year ended December 31, 2016 and 2015 was $1,131,217 and $1,210,250, respectively. The components of income tax expense (benefit) from continuing operations for the Years ended December 31, 2016 and 2015 consist of the following: For the Years Ended December 31, 2016 2015 Current tax expense: Federal $ - $ - State - - Current tax expense - - Deferred tax expense (benefit): Goodwill 511,108 511,108 Valuation Allowance (1,131,217) (1,210,250) Net operating loss carryforward 620,109 699,142 Subtotal deferred tax expense/(benefit) - - Income tax expense/(benefit) $ - $ - Deferred income tax expense/(benefit) results primarily from the reversal of temporary timing differences between tax and financial statement income. A reconciliation of income tax expense at the federal statutory rate to income tax expense at the company’s effective rate is as follows: For the Years Ended December 31, 2016 2015 Computed tax at the expected statutory rate $ 946,770 $ 1,013,408 State and local income taxes, net of federal 183,738 196,575 Other non-deductible expenses 709 267 Valuation Allowance (1,131,217) (1,210,250) Income tax expense/(benefit) $ - $ - The temporary differences, tax credits and carryforwards gave rise to the following deferred tax asset December 31, 2016 and 2015: December 31, December 31, 2016 2015 Current deferred tax assets (liabilities): Allowance for doubtful accounts $ - $ - Bonus accrual - - Vacation accrual - - Total current deferred tax assets (liabilities) - - Long-term deferred tax assets (liabilities): Goodwill - impaired 2,903,618 2,903,618 Goodwill – tax amortization (4,989,958) (4,478,850) Net operating loss carryforward 5,655,873 6,275,982 Valuation allowance (3,569,533) (4,700,750) Total long-term deferred tax assets (liabilities) $ - $ - Net term deferred tax assets (liabilities) $ - $ - At December 31, 2016, the company has loss carryforwards of approximately $13,921,860 that expire in various years through 2034. We file U.S. federal, and U.S. states returns, and we are generally no longer subject to tax examinations for years prior to 2011 for U.S. federal and U.S. states tax returns.

LEASES

LEASES	12 Months Ended
	Dec. 31, 2016
Leases [Abstract]
LEASES	NOTE 6 - LEASES Operating Lease The future minimum lease payments for non-cancelable operating leases having remaining terms in excess of one year as of December 31, 2016 are as follows: Year ending December 31: Lease Payments 2017 352,123 2018 359,431 2019 81,826 2020 56,844 2021 56,844 Thereafter 18,948 Total Minimum Lease Payment $ 926,016 Lease expense charged to operations was $266,405 and $256,092 for the periods ended December 31, 2016 and 2015, respectively.

EARNINGS PER SHARE

EARNINGS PER SHARE	12 Months Ended
	Dec. 31, 2016
Earnings Per Share [Abstract]
EARNINGS PER SHARE	NOTE 7 –EARNINGS PER SHARE The following data shows the amounts used in computing earnings per share and the weighted average number of shares of common stock outstanding for the periods presented for the periods ended: December 31, 2016 December 31, 2015 Income from operations available to common stockholders (numerator) $ 2,784,618 $ 2,980,611 Income available to common stockholders (numerator) 2,784,618 2,980,611 Weighted average number of common shares outstanding during the period used in earnings per share (denominator) 20,805,860 20,805,860

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 8 – COMMITMENTS AND CONTINGENCIES Although Libsyn does not expect to be liable for any obligations not expressly assumed by Libsyn from the Spin-Off, it is possible that Libsyn could be required to assume responsibility for certain obligations retained by FAB should FAB fail to pay or perform its retained obligations. After the Spin-Off, FAB may have obligations that at the present time are unknown or unforeseen. As the nature of such obligations are unknown, we are unable to provide an estimate of the potential obligation. However, should FAB incur such obligations, Libsyn may be financially obligated to pay any losses incurred. The Company has a 401 (k) plan and Profit sharing plan for the benefit of the employees of the Company. Employees are eligible to participate in the plan the first of the month following their hire date and attaining the age of 21. Profit sharing contributions are made at the discretion of the Board of Directors and vest 100% after the second year of service. The Company made a $100,000 profit sharing contribution to the plan in 2016.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	12 Months Ended
	Dec. 31, 2016
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 9 - SUBSEQUENT EVENTS Management has evaluated subsequent events through the date of the filing of this report. On January 18, 2017, the Board of Directors approved the issuance of stock awards of 1,500,000 common shares to the CEO, 1,250,000 shares to the CFO and 900,000 shares, 300,000 to each of the three independent board members. The awards were valued at $0.48 per share and vest in 25% tranches upon achieving the following milestones or the stock is forfeited: 1) Up-list to NASDAQ within 24 months; 2) Market cap of $25 Million for 5 consecutive days within 12 months; 3) Market cap of 50 Million for 5 consecutive days within 18 months: 4) Market cap of $75 Million for 5 consecutive days within 24 months.

SUMMARY OF SIGNIFICANT ACCOUN16

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Organization	Organization
Restatement/Reverse Spin-off	Restatement/Reverse Spin-off The basic and diluted earnings per share and weighted average basic and diluted common shares outstanding for the year ended December 31, 2015 gives effect to the 20,805,860 common shares issued upon the spin-off of the Company from FAB accounted for as a reverse spin-off.
Consolidation	Consolidation
Accounting Estimates	Accounting Estimates
Cash and Cash Equivalents	Cash and Cash Equivalents
Accounts Receivable	Accounts Receivable
Depreciation	Depreciation
Long-lived intangible assets	Long-lived intangible assets
Software Development Costs	Software Development Costs - We account for software development costs, including costs to develop software products or the software component of products to be marketed to external users, as well as software programs to be used solely to meet our internal needs in accordance with ASC Topic 985 Software and ASC Topic 350 Intangibles – Goodwill and Other. We have determined that technological feasibility for our products to be marketed to external users was reached shortly before the release of those products. As a result, the development costs incurred after the establishment of technological feasibility and before the release of those products were not material, and accordingly, were expensed as incurred. In addition, costs incurred during the application development stage for software programs to be used solely to meet our internal needs were not material.
Goodwill	Goodwill
Advertising Costs	Advertising Costs
Fair Value of Financial Instruments	Fair Value of Financial Instruments • Level 1. Observable inputs such as quoted prices in active markets for identical assets or liabilities; • 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 require the reporting entity to develop its own assumptions. Unless otherwise disclosed, the fair value of the Company’s financial instruments including cash, accounts receivable, prepaid expenses, and accounts payable and accrued expenses approximates their recorded values due to their short-term maturities.
Revenue Recognition	Revenue Recognition We evaluate whether it is appropriate to record the gross amount of product sales and related costs or the net amount earned as commissions. Generally, when we are primarily obligated in a transaction, are subject to inventory risk, have latitude in establishing prices and selecting suppliers, or have several but not all of these indicators, revenue is recorded at the gross sale price. We generally record the net amounts as commissions earned if we are not primarily obligated and do not have latitude in establishing prices. Such amounts earned are determined using a fixed percentage, a fixed-payment schedule, or a combination of the two. Publishing services are billed on a month to month basis. The Company recognizes revenue from providing digital media publishing services when the services are provided and when collection is probable. The Company recognizes revenue from the insertion of advertisements in digital media, as the digital media with the advertisement is downloaded and collection is probable. The Company recognizes revenue from the sale of apps and premium subscriptions when sold and collection is probable. The Company facilitates the sale of producers’ premium content through the sale of subscriptions. The amount earned per transaction is fixed and the producers determine the price for the sale of the subscription, and the Company earns a percentage of what the customer pays. Accordingly, the Company reports premium subscription revenue at net.
Leases	Leases
Research and Development	Research and Development -
Earnings Per Share	Earnings Per Share
Income Taxes	Income Taxes
Recently Enacted Accounting Standards	Recently Enacted Accounting Standards - In 2015, the FASB issued an amended standard requiring that we classify all deferred tax assets and liabilities as non-current on the balance sheet instead of separating deferred taxes into current and non-current. The amended standard is effective for us beginning in the first quarter of 2017. The amended standard may be adopted on either a prospective or retrospective basis. We do not expect that the adoption of this standard will have a significant impact on our financial position or results of operations. In February 2016, the FASB issued changes to the accounting for leases that primarily affect presentation and disclosure requirements. The new standard will require the recognition of a right to use asset and underlying lease liability for operating leases with an initial life in excess of one year. This standard is effective for us beginning in the first quarter of 2019. We have not yet determined the impact of the new standard on our consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting, which changes how companies account for certain aspects of share-based payments to employees. The new guidance requires all income tax effects of awards to be recognized in the income statement when the awards vest or are settled, allows an employer to repurchase more of an employee’s shares than previously allowed for tax withholding purposes without triggering liability accounting, allows a company to make a policy election to account for forfeitures as they occur, and eliminates the requirement that excess tax benefits be realized before companies can recognize them. The new guidance also requires excess tax benefits and tax shortfalls to be presented on the cash flow statement as an operating activity rather than as a financing activity, and clarifies that cash paid to a tax authority when shares are withheld to satisfy its statutory income tax withholding obligation are to be presented as a financing activity. The standard is effective for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Early adoption is permitted. Recent accounting pronouncements issued by the FASB did not or are not believed by management to have a material impact on the Company’s present or future financial statements.

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment	The following is a summary of property and equipment at: Life December 31, 2016 December 31, 2015 Furniture, fixtures, and equipment 2-10 yrs $ 145,553 $ 110,415 145,553 110,415 Less: Accumulated depreciation (111,571) (88,545) Property & equipment, net $ 33,982 $ 21,870

GOODWILL (Tables)

GOODWILL (Tables)	12 Months Ended
	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Summary of Goodwill	The following is a summary of goodwill: For the Years Ended December 31, 2016 December 31, 2015 Goodwill at beginning of period $ 11,484,251 $ 11,484,251 Impairment - - Goodwill at end of period $ 11,484,251 $ 11,484,251

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Schedule of Income Tax Expense	The components of income tax expense (benefit) from continuing operations for the Years ended December 31, 2016 and 2015 consist of the following: For the Years Ended December 31, 2016 2015 Current tax expense: Federal $ - $ - State - - Current tax expense - - Deferred tax expense (benefit): Goodwill 511,108 511,108 Valuation Allowance (1,131,217) (1,210,250) Net operating loss carryforward 620,109 699,142 Subtotal deferred tax expense/(benefit) - - Income tax expense/(benefit) $ - $ -
Schedule of Effective Income Tax Rate Reconciliation	A reconciliation of income tax expense at the federal statutory rate to income tax expense at the company’s effective rate is as follows: For the Years Ended December 31, 2016 2015 Computed tax at the expected statutory rate $ 946,770 $ 1,013,408 State and local income taxes, net of federal 183,738 196,575 Other non-deductible expenses 709 267 Valuation Allowance (1,131,217) (1,210,250) Income tax expense/(benefit) $ - $ -
Schedule of Deferred Tax Assets and Liabilities	The temporary differences, tax credits and carryforwards gave rise to the following deferred tax asset December 31, 2016 and 2015: December 31, December 31, 2016 2015 Current deferred tax assets (liabilities): Allowance for doubtful accounts $ - $ - Bonus accrual - - Vacation accrual - - Total current deferred tax assets (liabilities) - - Long-term deferred tax assets (liabilities): Goodwill - impaired 2,903,618 2,903,618 Goodwill – tax amortization (4,989,958) (4,478,850) Net operating loss carryforward 5,655,873 6,275,982 Valuation allowance (3,569,533) (4,700,750) Total long-term deferred tax assets (liabilities) $ - $ - Net term deferred tax assets (liabilities) $ - $ -

LEASES (Tables)

LEASES (Tables)	12 Months Ended
	Dec. 31, 2016
Leases [Abstract]
Schedule of Future Minimum Lease Payments	The future minimum lease payments for non-cancelable operating leases having remaining terms in excess of one year as of December 31, 2016 are as follows: Year ending December 31: Lease Payments 2017 352,123 2018 359,431 2019 81,826 2020 56,844 2021 56,844 Thereafter 18,948 Total Minimum Lease Payment $ 926,016

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	12 Months Ended
	Dec. 31, 2016
Earnings Per Share [Abstract]
Schedule of Earnings Per Share	The following data shows the amounts used in computing earnings per share and the weighted average number of shares of common stock outstanding for the periods presented for the periods ended: December 31, 2016 December 31, 2015 Income from operations available to common stockholders (numerator) $ 2,784,618 $ 2,980,611 Income available to common stockholders (numerator) 2,784,618 2,980,611 Weighted average number of common shares outstanding during the period used in earnings per share (denominator) 20,805,860 20,805,860

SUMMARY OF SIGNIFICANT ACCOUN22

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Accounting Policies [Abstract]
Cash balances in excess of federally insured limits	$ 4,733,497
Allowance for doubtful accounts	14,000	$ 14,000
Adjusted allowance for bad debt	0	0
Advertising costs	29,397	30,255
Research and development costs	$ 515,756	$ 290,559
Additional common shares issued		20,805,860

PROPERY AND EQUIPMENT (Details)

PROPERY AND EQUIPMENT (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Property and equipment	$ 145,553	$ 110,415
Less: Accumulated depreciation	(111,571)	(88,545)
Property and equipment, net	33,982	21,870
Depreciation expense	24,679	22,762
Furniture, fixtures and equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment	$ 145,553	$ 110,415
Furniture, fixtures and equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful life	2 years
Furniture, fixtures and equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful life	10 years

GOODWILL (Details)

GOODWILL (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Goodwill [Roll Forward]
Goodwill at beginning of period	$ 11,484,251	$ 11,484,251
Impairment
Goodwill at end of period	$ 11,484,251	$ 11,484,251

CAPITAL STOCK (Details)

CAPITAL STOCK (Details) - $ / shares	Dec. 31, 2016	Jul. 20, 2016	Dec. 31, 2015
Stockholders' Equity Note [Abstract]
Common stock authorized	200,000,000		200,000,000
Common stock par value	$ 0.001		$ 0.001
Common stock issued	20,806,850		20,805,860
Common stock outstanding	20,805,860	20,804,850	20,805,860

INCOME TAXES (Narrative) (Detai

INCOME TAXES (Narrative) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Total of all deferred tax assets	$ 3,569,533	$ 4,700,750
Deferred tax assets attributable to goodwill	2,086,340	1,575,232
Valuation allowance	3,569,533	4,700,750
Change in the valuation allowance	1,131,217	$ 1,210,250
Loss carryforwards	$ 13,921,860
Loss carryforwards, expiration date	Dec. 31, 2034

INCOME TAXES (Schedule of Compo

INCOME TAXES (Schedule of Components of Income Tax Expense (Benefit)) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Current tax expense:
Federal
State
Current tax expense
Deferred tax expense (benefit):
Goodwill	511,108	511,108
Valuation Allowance	(1,131,217)	(1,210,250)
Net operating loss carryforward	620,109	699,142
Subtotal deferred tax expense/(benefit)
Income tax expense/(benefit)

INCOME TAXES (Schedule of Effec

INCOME TAXES (Schedule of Effective Income Tax Rate Reconciliation) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Effective Income Tax Rate Reconciliation [Abstract]
Computed tax at the expected statutory rate	$ 946,770	$ 1,013,408
State and local income taxes, net of federal	183,738	196,575
Other non-deductible expenses	709	267
Valuation Allowance	(1,131,217)	(1,210,250)
Income tax expense/(benefit)

INCOME TAXES (Schedule of Defer

INCOME TAXES (Schedule of Deferred Tax Assets) (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Current deferred tax assets (liabilities):
Allowance for doubtful accounts
Bonus accrual
Vacation accrual
Total current deferred tax assets (liabilities)
Long-term deferred tax assets (liabilities):
Goodwill - impaired	2,903,618	2,903,618
Goodwill - tax amortization	(4,989,958)	(4,478,850)
Net operating loss carryforward	5,655,873	6,275,982
Valuation allowance	(3,569,533)	(4,700,750)
Total long-term deferred tax assets (liabilities)
Net term deferred tax assets (liabilities)

LEASES (Narrative) (Details)

LEASES (Narrative) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Operating Leased Assets [Line Items]
Lease expense	$ 266,405	$ 256,092
Los Angeles, California [Member] | Office Space [Member] | Through February 2017 [Member]
Operating Leased Assets [Line Items]
Monthly rent	28,033
Los Angeles, California [Member] | Office Space [Member] | Through February 2018 [Member]
Operating Leased Assets [Line Items]
Monthly rent	28,871
Los Angeles, California [Member] | Office Space [Member] | Through February 2019 [Member]
Operating Leased Assets [Line Items]
Monthly rent	28,892
Los Angeles, California [Member] | Office Space [Member] | Through June 2019 [Member]
Operating Leased Assets [Line Items]
Monthly rent	30,744
Pittsburgh Pennsylvania [Member] | Office Space [Member]
Operating Leased Assets [Line Items]
Monthly rent	$ 4,737

LEASES (Schedule of Future Mini

LEASES (Schedule of Future Minimum Lease Payments) (Details)	Dec. 31, 2016USD ($)
Year ending September 30:
2,017	$ 352,123
2,018	359,431
2,019	81,826
2,020	56,844
2,021	56,844
Thereafter	18,948
Total Minimum Lease Payment	$ 926,016

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Earnings Per Share [Abstract]
Income from operations available to common stockholders (numerator)	$ 2,784,618	$ 2,980,611
Income available to common stockholders (numerator)	$ 2,784,618	$ 2,980,611
Weighted average number of common shares outstanding during the period used in earnings per share (denominator)	20,805,860	20,805,860

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details)	12 Months Ended
	Dec. 31, 2016USD ($)
Commitments And Contingencies Details
Profit sharing contribution	$ 100,000

SUBSEQUENT EVENTS (Narrative) (

SUBSEQUENT EVENTS (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended	12 Months Ended
	Jan. 18, 2017	Dec. 31, 2015
Issuance of common shares		20,805,860
Subsequent Event [Member]
Shares issuance price per share	$ 0.48
Vesting percentage	25.00%
Subsequent Event [Member] | 5 consecutive days within 12 months [Member]
Shares Forfeited	$ 25
Subsequent Event [Member] | 5 consecutive days within 18 months [Member]
Shares Forfeited	50
Subsequent Event [Member] | 5 consecutive days within 24 months [Member]
Shares Forfeited	$ 75
Subsequent Event [Member] | CEO [Member]
Issuance of common shares	1,500,000
Subsequent Event [Member] | CFO [Member]
Issuance of common shares	1,250,000
Subsequent Event [Member] | Three independent board members [Member]
Issuance of common shares	900,000
Subsequent Event [Member] | Each of three independent board members [Member]
Issuance of common shares	300,000