Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Nov. 09, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Liberated Syndication Inc. | |
Entity Central Index Key | 1,667,489 | |
Amendment Flag | false | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 24,415,860 |
UNAUDITED CONDENSED CONSOLIDATE
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
CURRENT ASSETS: | ||
Cash | $ 7,369,569 | $ 4,875,458 |
Accounts receivable, net | 591,572 | 385,335 |
Prepaid expenses | 44,600 | 44,583 |
Total current assets | 8,005,741 | 5,305,376 |
Security Deposit | 3,582 | |
Property and equipment, net | 88,948 | 33,982 |
Goodwill | 11,484,251 | 11,484,251 |
Total assets | 19,582,522 | 16,823,609 |
CURRENT LIABILITIES: | ||
Accounts payable | 429,377 | 536,295 |
Accrued expenses | 74,302 | 313,586 |
Deferred revenue | 101,025 | 110,167 |
Total current liabilities | 604,704 | 960,048 |
Total liabilities | 604,704 | 960,048 |
STOCKHOLDERS' EQUITY | ||
Common stock | 24,416 | 20,806 |
Additional paid-in capital | 26,787,637 | 25,047,247 |
Retained Earnings (accumulated deficit) | (7,834,235) | (9,204,492) |
Total stockholders' equity | 18,977,818 | 15,863,561 |
Total liabilities and stockholders' equity | $ 19,582,522 | $ 16,823,609 |
UNAUDITED CONDENSED CONSOLIDAT3
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 |
Statement of Financial Position [Abstract] | |||
Allowance for doubtful accounts | $ 14,000 | $ 14,000 | $ 14,000 |
Common stock authorized | 200,000,000 | 200,000,000 | |
Common stock par value | $ 0.001 | $ 0.001 | |
Common stock outstanding | 24,415,860 | 20,805,860 |
UNAUDITED CONDENSED CONSOLIDAT4
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Statement [Abstract] | ||||
Revenue | $ 2,730,237 | $ 2,228,482 | $ 7,723,250 | $ 6,419,298 |
Cost of Revenue | 797,746 | 677,729 | 2,309,902 | 2,084,487 |
Gross Profit | 1,932,491 | 1,550,753 | 5,413,348 | 4,334,811 |
OPERATING EXPENSES | ||||
Selling expenses | 75,649 | 85,576 | 235,583 | 221,781 |
General and administrative | 695,361 | 681,801 | 3,807,508 | 1,996,515 |
Total Operating Expenses | 771,010 | 767,377 | 4,043,091 | 2,218,296 |
Income from operations | 1,161,481 | 783,376 | 1,370,257 | 2,116,515 |
OTHER INCOME (EXPENSE): | ||||
Other income (expense) | ||||
Total Other Income (expense) | ||||
Income from operations before income taxes | 1,161,481 | 783,376 | 1,370,257 | 2,116,515 |
INCOME TAXES | ||||
Current Income Tax Expense (Benefit) | ||||
Deferred Income Tax Expense (Benefit) | ||||
Net Income | $ 1,161,481 | $ 783,376 | $ 1,370,257 | $ 2,116,515 |
BASIC AND DILUTED INCOME PER COMMON SHARE (Restated) | $ 0.05 | $ 0.04 | $ 0.06 | $ 0.10 |
BASIC AND DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING (Restated) | 24,415,860 | 20,805,860 | 24,195,567 | 20,805,860 |
UNAUDITED CONDENSED CONSOLIDAT5
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash Flows from Operating Activities | ||
Net income | $ 1,370,257 | $ 2,116,515 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization expense | 14,098 | 19,807 |
Issuance of common stock | 1,752,000 | |
Change in assets and liabilities: | ||
Accounts receivable | (206,236) | (9,107) |
Prepaid expenses | (3,599) | (77,083) |
Accounts payable | (106,918) | (13,274) |
Accrued expense | (239,285) | (22,805) |
Deferred revenue | (9,142) | (34,959) |
Net Cash Provided by Operating Activities | 2,571,175 | 1,979,094 |
Cash Flows from Investing Activities: | ||
Purchase of equipment | (69,064) | (18,436) |
Net Cash Used in Investing Activities | (69,064) | (18,436) |
Cash Flows from Financing Activities: | ||
Payments to FAB Universal Corp | (620,766) | |
Re-purchase of common stock | (8,000) | |
Net Cash Used in Financing Activities | (8,000) | (620,766) |
Net Increase in Cash | 2,494,111 | 1,339,892 |
Cash at Beginning of Period | 4,875,458 | 2,470,694 |
Cash at End of Period | 7,369,569 | 3,810,586 |
Supplemental Disclosures of Cash Flow Information | ||
Cash paid during the periods for: Interest | ||
Cash paid during the periods for: Income taxes | ||
Supplemental Non-Cash Investing and Financing Activities | ||
Compensation for restricted stock awards issued to management and the board of directors | $ 1,752,000 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2017 | |
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 nine months ended September 30, 2016 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 Companys 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 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. Other recent accounting pronouncements issued by the FASB did not or are not believed by management to have a material impact on the Companys present or future financial statements. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 9 Months Ended |
Sep. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | NOTE 2 - PROPERTY & EQUIPMENT The following is a summary of property and equipment at: Life September 30, 2017 December 31, 2016 Furniture, fixtures and equipment 2-10 yrs $ 186,568 $ 145,553 Leasehold Improvements 5 yrs 28,049 - 214,617 145,553 Less: Accumulated depreciation (125,669) (111,571) Property & equipment, net $ 88,948 $ 33,982 Depreciation expense for the nine months ended September 30, 2017 and 2016 was $14,098 and $19,807, respectively. |
GOODWILL
GOODWILL | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL | NOTE 3 - GOODWILL Impairment - During the fourth quarter of 2016, 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 Periods Ended September 30, 2017 December 31, 2016 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 | 9 Months Ended |
Sep. 30, 2017 | |
Stockholders' Equity Note [Abstract] | |
CAPITAL STOCK | NOTE 4 - CAPITAL STOCK Common Stock During the first quarter, the Company issued 3,650,000 shares of common stock valued at $1,752,000 to officers and directors. During the second quarter, the Company repurchased 40,000 shares of common stock for $8,000, and the stock was retired. Reverse Spin-Off |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2017 | |
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 September 30, 2017 and 2016, the total of all deferred tax assets was $3,011,953 and $3,840,987, respectively, and the total of the deferred tax assets related to goodwill was $2,469,670 and $1,958,563, 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 Companys 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 established a valuation allowance equal to the deferred tax asset. The change in the valuation allowance for the nine months ended September 30, 2017 and 2016 was $557,580 and $859,763, respectively. The components of income tax expense (benefit) from continuing operations for the nine months ended September 30, 2017 and 2016 consist of the following: For the Nine Months Ended September 30, 2017 2016 Current tax expense: Federal $ - $ - State - - Current tax expense - - Deferred tax expense (benefit): Goodwill 383,331 383,331 Valuation Allowance (557,580) (859,763) Net operating loss carryforward 174,249 476,432 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 as the federal statutory rate to income tax expense at the Companys effective rate is as follows: For the Nine Months Ended September 30, 2017 2016 Computed tax at the expected statutory rate $ 465,893 $ 719,616 State and local income taxes, net of federal 90,565 139,647 Other non-deductible expenses 1,122 500 Valuation Allowance (557,580) (859,763) Income tax expense/(benefit) $ - $ - The temporary differences, tax credits and carryforwards gave rise to the following deferred tax asset at September 30, 2017 and December 31, 2016: September 30, December 31, 2017 2016 Net deferred tax assets (liabilities): Goodwill - impaired 2,903,618 2,903,618 Goodwill tax amortization (5,373,289) (4,862,181) Net operating loss carryforward 5,481,624 5,799,550 Valuation allowance (3,011,953) (3,840,987) Net term deferred tax assets (liabilities) $ - $ - |
LEASES
LEASES | 9 Months Ended |
Sep. 30, 2017 | |
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 September 30, 2017 are as follows: Year ending September 30: Lease Payments 2018 56,844 2019 56,844 2020 56,844 2021 56,844 Thereafter 33,159 Total Minimum Lease Payment $ 260,535 Lease expense charged to operations was $153,252 and $168,786 for the nine months ended September 30, 2017 and 2016, respectively. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2017 | |
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: For the Three Months For the Nine Months September 30 September 30 2017 2016 2017 2016 Income from operations available to common stockholders (numerator) $ 1,161,481 $ 783,376 $ 1,370,257 $ 2,116,515 Income available to common stockholders (numerator) 1,161,481 783,376 1,370,257 2,116,515 Restated Weighted average number of common shares outstanding during the period used in earnings per share (denominator) 24,446,578 20,805,860 24,083,595 20,805,860 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2017 | |
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. 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 | 9 Months Ended |
Sep. 30, 2017 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 9 - SUBSEQUENT EVENTS Management has evaluated subsequent events through the date of the filing of this report. |
SUMMARY OF SIGNIFICANT ACCOUN15
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
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 nine months ended September 30, 2016 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 Companys 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 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. Other recent accounting pronouncements issued by the FASB did not or are not believed by management to have a material impact on the Companys present or future financial statements. |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | The following is a summary of property and equipment at: Life September 30, 2017 December 31, 2016 Furniture, fixtures and equipment 2-10 yrs $ 186,568 $ 145,553 Leasehold Improvements 5 yrs 28,049 - 214,617 145,553 Less: Accumulated depreciation (125,669) (111,571) Property & equipment, net $ 88,948 $ 33,982 |
GOODWILL (Tables)
GOODWILL (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill | The following is a summary of goodwill: For the Periods Ended September 30, 2017 December 31, 2016 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) | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense | The components of income tax expense (benefit) from continuing operations for the nine months ended September 30, 2017 and 2016 consist of the following: For the Nine Months Ended September 30, 2017 2016 Current tax expense: Federal $ - $ - State - - Current tax expense - - Deferred tax expense (benefit): Goodwill 383,331 383,331 Valuation Allowance (557,580) (859,763) Net operating loss carryforward 174,249 476,432 Subtotal deferred tax expense/(benefit) - - Income tax expense/(benefit) $ - $ - |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of income tax expense as the federal statutory rate to income tax expense at the Companys effective rate is as follows: For the Nine Months Ended September 30, 2017 2016 Computed tax at the expected statutory rate $ 465,893 $ 719,616 State and local income taxes, net of federal 90,565 139,647 Other non-deductible expenses 1,122 500 Valuation Allowance (557,580) (859,763) 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 at September 30, 2017 and December 31, 2016: September 30, December 31, 2017 2016 Net deferred tax assets (liabilities): Goodwill - impaired 2,903,618 2,903,618 Goodwill tax amortization (5,373,289) (4,862,181) Net operating loss carryforward 5,481,624 5,799,550 Valuation allowance (3,011,953) (3,840,987) Net term deferred tax assets (liabilities) $ - $ - |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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 September 30, 2017 are as follows: Year ending September 30: Lease Payments 2018 56,844 2019 56,844 2020 56,844 2021 56,844 Thereafter 33,159 Total Minimum Lease Payment $ 260,535 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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: For the Three Months For the Nine Months September 30 September 30 2017 2016 2017 2016 Income from operations available to common stockholders (numerator) $ 1,161,481 $ 783,376 $ 1,370,257 $ 2,116,515 Income available to common stockholders (numerator) 1,161,481 783,376 1,370,257 2,116,515 Restated Weighted average number of common shares outstanding during the period used in earnings per share (denominator) 24,446,578 20,805,860 24,083,595 20,805,860 |
SUMMARY OF SIGNIFICANT ACCOUN21
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | |||
Additional common shares issued | 20,805,860 | ||
Cash balances in excess of federally insured limits | $ 7,204,003 | ||
Allowance for doubtful accounts | 14,000 | $ 14,000 | $ 14,000 |
Adjusted allowance for bad debt | 0 | 0 | |
Advertising costs | 25,344 | 21,721 | |
Research and development costs | $ 463,386 | $ 389,575 | |
Additional common shares to be issued upon spin off of the Company from FAB accounted for as a reverse spin-off | 20,804,860 |
PROPERY AND EQUIPMENT (Details)
PROPERY AND EQUIPMENT (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment | $ 214,617 | $ 145,553 | |
Less: Accumulated depreciation | (125,669) | (111,571) | |
Property & equipment, net | 88,948 | 33,982 | |
Depreciation expense | 14,098 | $ 19,807 | |
Furniture, fixtures and equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | $ 186,568 | 145,553 | |
Furniture, fixtures and equipment [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Life | 2 years | ||
Furniture, fixtures and equipment [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Life | 10 years | ||
Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | $ 28,049 | ||
Life | 5 years |
GOODWILL (Details)
GOODWILL (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
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) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Common stock authorized | 200,000,000 | 200,000,000 | |||
Common stock par value | $ 0.001 | $ 0.001 | |||
Common stock issued | 24,415,860 | 20,805,860 | |||
Common stock outstanding | 24,415,860 | 20,805,860 | |||
Common stock shares issued | 20,805,860 | ||||
Common stock shares issued, value | $ (1,752,000) | ||||
Common stock shares repurchased | 40,000 | ||||
Common stock shares repurchased, Value | $ 8,000 | ||||
Officers and directors [Member] | |||||
Common stock shares issued | 3,650,000 | ||||
Common stock shares issued, value | $ 1,752,000 |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||
Total of all deferred tax assets | $ 3,011,953 | $ 3,840,987 |
Deferred tax assets related to goodwill | 2,469,670 | 1,958,563 |
Change in the valuation allowance | $ 557,580 | $ 859,763 |
INCOME TAXES (Schedule of Compo
INCOME TAXES (Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Current tax expense: | ||||
Federal | ||||
State | ||||
Current tax expense | ||||
Deferred tax expense (benefit): | ||||
Goodwill | 383,331 | 383,331 | ||
Valuation Allowance | (557,580) | (859,763) | ||
Net operating loss carryforward | 174,249 | 476,432 | ||
Subtotal deferred tax expense/(benefit) | ||||
Income tax expense/(benefit) |
INCOME TAXES (Schedule of Effec
INCOME TAXES (Schedule of Effective Income Tax Rate Reconciliation) (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Effective Income Tax Rate Reconciliation [Abstract] | ||
Computed tax at the expected statutory rate | $ 465,893 | $ 719,616 |
State and local income taxes, net of federal | 90,565 | 139,647 |
Other non-deductible expenses | 1,122 | 500 |
Valuation Allowance | (557,580) | (859,763) |
Income tax expense/(benefit) |
INCOME TAXES (Schedule of Defer
INCOME TAXES (Schedule of Deferred Tax Assets) (Details) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Net deferred tax assets (liabilities): | ||
Goodwill - impaired | $ 2,903,618 | $ 2,903,618 |
Goodwill - tax amortization | (5,373,289) | (4,862,181) |
Net operating loss carryforward | 5,481,624 | 5,799,550 |
Valuation allowance | (3,011,953) | (3,840,987) |
Net term deferred tax assets (liabilities) |
LEASES (Narrative) (Details)
LEASES (Narrative) (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Operating Leased Assets [Line Items] | ||
Lease expense | $ 153,252 | $ 168,786 |
Office Space [Member] | Pittsburgh Pennsylvania [Member] | Through April 2022 [Member] | ||
Operating Leased Assets [Line Items] | ||
Monthly rent | $ 4,737 |
LEASES (Schedule of Future Mini
LEASES (Schedule of Future Minimum Lease Payments) (Details) | Sep. 30, 2017USD ($) |
Year ending September 30: | |
2,018 | $ 56,844 |
2,019 | 56,844 |
2,020 | 56,844 |
2,021 | 56,844 |
Thereafter | 33,159 |
Total Minimum Lease Payment | $ 260,535 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
Income from operations available to common stockholders (numerator) | $ 1,161,481 | $ 783,376 | $ 1,370,257 | $ 2,116,515 |
Income available to common stockholders (numerator) | $ 1,161,481 | $ 783,376 | $ 1,370,257 | $ 2,116,515 |
Restated Weighted average number of common shares outstanding during the period used in earnings per share (denominator) | 24,415,860 | 20,805,860 | 24,195,567 | 20,805,860 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Profit sharing contribution | $ 100,000 |