Liberated Syndication (LSYN) 10-Q 15 May 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2018	May 11, 2018
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	Mar. 31, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Common Stock, Shares Outstanding		29,776,974

UNAUDITED CONDENSED CONSOLIDATE

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Mar. 31, 2018	Dec. 31, 2017
CURRENT ASSETS:
Cash	$ 6,587,745	$ 5,211,845
Accounts receivable, net	671,683	660,139
Prepaid expenses	142,699	186,425
Prepaid domains, net	108,623	0
Total current assets	7,510,750	6,058,409
Property and equipment, net	2,704,454	3,007,025
Goodwill	16,388,171	16,352,069
Definite life - intangible assets	9,179,671	9,644,000
Prepaid domains, net of current portion	72,835	0
Other	3,582	7,076
Total assets	35,859,463	35,068,579
CURRENT LIABILITIES:
Accounts payable	484,596	440,565
Accrued expenses	313,013	769,485
Deferred revenue, net	1,910,125	1,247,686
Current portion of capital lease obligation	70,160	69,243
Current portion of loans payable, net of $31,746 discount	1,568,254	1,566,634
Total current liabilities	4,346,148	4,093,613
LONG TERM LIABILITIES:
Loans payable, net of $72,231 discount, less current portion	7,927,769	8,320,366
Capital lease obligation, net of current portion	55,929	73,817
Deferred revenue, net	260,814	133,617
Total long-term liabilities	8,244,512	8,527,800
Total liabilities	12,589,603	12,621,413
STOCKHOLDERS' EQUITY
Common stock	59,611	29,596
Additional paid-in capital	35,093,164	34,804,457
Retained Earnings (accumulated deficit)	(11,853,972)	(12,386,887)
Total stockholders' equity	23,268,803	22,447,166
Total liabilities and stockholders' equity	$ 35,859,463	$ 35,068,579

UNAUDITED CONDENSED CONSOLIDAT3

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical)	Mar. 31, 2018USD ($)$ / sharesshares
Statement of Financial Position [Abstract]
Current loans payable discount	$ 31,746
Noncurrent loans payable discount	72,231
Allowance for doubtful accounts	$ 14,000
Common stock authorized | shares	200,000,000
Common stock par value | $ / shares	$ 0.001
Common stock outstanding | shares	29,776,974

UNAUDITED CONDENSED CONSOLIDAT4

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Income Statement [Abstract]
Revenue	$ 5,059,305	$ 2,494,111
Costs and operating expenses
Cost of revenue (excluding depreciation and amortization)	707,370	617,054
General and administrative	1,387,312	468,247
Non-cash compensation	318,000	1,752,000
Technology	373,326	143,042
Selling	217,002	76,038
Customer support	668,230	191,820
Depreciation and amortization	766,900	4,304
Total costs and operating expenses	3,730,770	3,252,205
Operating income (loss)	621,165	(758,394)
Interest expense	(100,596)	0
Interest income	9,665	0
Other income (expense)	2,681	0
Income (loss) from operations	532,915	(758,394)
Income tax expense (benefit)	0	0
Net Income (loss)	$ 532,915	$ (451,138)
BASIC AND DILUTED INCOME (LOSS) PER COMMON SHARE	$ 0.02	$ (0.03)
BASIC AND DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING	29,644,362	23,725,860

UNAUDITED CONDENSED CONSOLIDAT5

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash Flows from Operating Activities
Net income (loss)	$ 532,915	$ (451,138)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	766,900	4,304
Issuance of common stock	318,000	1,752,000
Discount on loan fees	9,023	0
Deferred taxes	0	(307,256)
Change in assets and liabilities:
Accounts receivable	(76,925)	(248,402)
Prepaid expenses	(134,237)	(53,769)
Accounts payable	44,031	38,109
Accrued expense	(456,472)	(291,575)
Deferred revenue	789,635	5,202
Net Cash Provided by Operating Activities	1,792,870	447,475
Cash Flows from Investing Activities:
Net Cash Used in Investing Activities	0	0
Cash Flows from Financing Activities:
Repayment on term loan	(400,000)	0
Repayment on capital lease	(16,970)	0
Net Cash Used in Financing Activities	(416,970)	0
Net Increase in Cash	1,375,900	447,475
Cash at Beginning of Period	5,211,845	4,875,458
Cash at End of Period	6,587,745	5,322,933
Supplemental Disclosures of Cash Flow Information
Cash paid during the periods for: Interest	96,730	0
Cash paid during the periods for: Income taxes	0	0
Supplemental Non-Cash Investing and Financing Activities
Unregistered/restricted stock awards issued	$ 318,000	$ 1,752,000

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Organization Prior Period Reclassifications - Consolidation Accounting Estimates Our more significant estimates include: ● the determination of the best estimate of selling price of the deliverables included in multiple-deliverable revenue arrangements; ● the fair value of assets acquired, and liabilities assumed in business acquisitions; ● the assessment of recoverability of long-lived assets, including property and equipment, goodwill and intangible assets; ● the estimated reserve for refunds; ● the estimated useful lives of intangible and depreciable assets; ● the grant date fair value of equity-based awards; ● the recognition, measurement, and valuation of current and deferred income taxes; We periodically evaluate these estimates and adjust prospectively, if necessary. We believe our estimates and assumptions are reasonable; however, actual results may differ from our estimates. Cash and Cash Equivalents Accounts Receivable Depreciation Long-lived intangible assets Software Development Costs 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, deferred revenue and accrued expenses approximates their recorded values due to their short-term maturities. Revenue Recognition The adoption of the new standard did not have a material impact to our financial statements. Revenue is recognized when control of the promised services is transferred to our customers, in an amount reflecting the consideration we expect to be entitled to in exchange for those services. Certain products are generally sold with a right of return within our policy, which are accounted for as variable consideration when estimating the amount of revenue to recognize. Refunds are estimated at contract inception using the expected value method based on historical refund experience and updated each reporting period as additional information becomes available and only to the extent it is probable a significant reversal of any incremental revenue will not occur. Refunds reduce deferred revenue at the time they are granted and resulted in a reduced amount of revenue recognized over the contract term of the applicable service compared to the amount originally expected. Our revenue is categorized and disaggregated as follows: Domains Hosting Services Podcast Hosting Media Subscription Services Advertising Equity-Based Compensation - Expected term. Expected volatility. Expected dividend yield. Risk-free interest rate. Leases Earnings Per Share Income Taxes Recently Enacted Accounting Standards - R

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	3 Months Ended
	Mar. 31, 2018
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	The following is a summary of property and equipment at: Life March 31, 2018 December 31, 2017 Furniture, fixtures, and equipment 3-10 yrs $ 8,032,178 $ 8,032,178 Leasehold improvements 3-5 yrs 2,646,400 2,646,400 Software 3 yrs 6,503 6,503 10,685,081 10,685,081 Less: Accumulated depreciation (7,980,627 ) (7,678,056 ) Property & equipment, net $ 2,704,454 $ 3,007,025 Depreciation expense for the three months ended March 31, 2018 and 2017 was $302,571 and $4,304, respectively.

GOODWILL AND OTHER DEFINITE-LIF

GOODWILL AND OTHER DEFINITE-LIFE INTANGIBLE ASSETS	3 Months Ended
	Mar. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND OTHER DEFINITE-LIFE INTANGIBLE ASSETS	Impairment - During the fourth quarter of 2017, 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 March 31, December 31, 2018 2017 Goodwill at beginning of period $ 16,352,069 $ 11,484,251 Acquisition of Pair 36,102 4,867,818 Impairment - - Goodwill at end of period $ 16,388,171 $ 16,352,069 During the first quarter of 2018, the Company completed its net-working capital closing adjustment for the acquisition of Pair, resulting in an additional allocation of $36,102 of goodwill. Other definite-life intangible assets As of March 31, 2018, identifiable intangible assets consist of following: Preliminary Fair Value Weighted Average Useful Life (in Years) Accumulated Amortization Net Carrying Amount Customer Relationships $ 3,947,000 7 $ 140,965 $ 3,806,035 Intellectual Property 3,709,000 7 132,464 3,576,536 Trade name 576,000 10 14,400 561,600 Non-compete 1,412,000 2 176,500 1,235,500 Total $ 9,644,000 $ 464,329 $ 9,179,671 The estimated future amortization expenses related to other intangible assets as of March 31, 2018 are as follows: For twelve months ending March 31, 2019 $ 1,857,314 2020 1,680,814 2021 1,151,314 2022 1,151,314 2023 1,151,314 Thereafter 2,187,601 Total $ 9,179,671

LOANS

LOANS	3 Months Ended
	Mar. 31, 2018
Loans
LOANS	On December 27, 2017, the Company entered into a loan agreement (the “Loan Agreement”) among the Company, Libsyn, and Pair, together, and First Commonwealth Bank, a Pennsylvania bank and trust company (the “Bank”). The Loan Agreement provides for: (i) a revolving credit facility pursuant to which the Company may borrow an aggregate principal amount not to exceed $2,000,000 (the “Revolving Credit Facility”); and (ii) a term loan in a principal amount equal to $8,000,000 (the “Term Loan” and, together with the Revolving Credit Facility, the “Facility”). A portion of the Revolving Credit Facility, up to $500,000, may be used for standby letters of credit for the account of the Company. As of March 31, 2018, $2,000,000 was drawn down on the revolving line with $0 available. The loan accrues interest at LIBOR plus 175 base points or prime plus 75 basis points at the election of the Company. As of March 31, 2018, the Company has elected LIBOR plus 175 basis points or 3.625%. The Term Loan is repayable in quarterly installments of $400,000 commencing on March 30, 2018 and on the last day of each June, September, December and March thereafter, through and including September 30, 2022. Accrued interest is payable in arrears not less frequently than quarterly. The remaining unpaid principal balance of the Term Loan, together with accrued interest thereon, is due and payable in full on December 27, 2022. The Term Loan also calls for additional payment equal to the following: 1)100% of the proceeds from the sale of any common shares 2) 100% of the proceeds from the sale of assets not immediately replaced 3)excess liquidity in any given year up to $1,066,667 a year and no more than $3,200,000 over the life of the term loan. As of March 31, 2018, the balance on the term loan was $7,600,000. The Company, Libsyn and Pair have granted the bank a blanket security interest in their respective assets, and the Company has pledged the stock of Webmayhem Inc. and Pair Networks Inc. to the bank, as security for all obligations under the Loan Agreement. Borrowings under the Facility are at variable rates which are, at the Company’s option, tied to LIBOR (London Interbank Offered Rate) plus an applicable rate or a prime rate. Interest rates are subject to change based on the Company’s combined cash balances. The Facility contains covenants that may have the effect of limiting the ability of the Company to, among other things, merge with or acquire other entities, enter into a transaction resulting in a change in control, create certain new liens, incur certain additional indebtedness, engage in certain transactions with affiliates, engage in new lines of business or sell a substantial part of its assets. The Facility also requires the Company to maintain certain consolidated fixed charge coverage ratios and minimum liquidity balances. The Facility also contains customary events of default, including (but not limited to) default in the payment of principal or, following an applicable grace period, interest, breaches of the Company’s covenants or warranties under the Facility, payment default or acceleration of certain indebtedness of the Company or any subsidiary, certain events of bankruptcy, insolvency or liquidation involving the Company or its subsidiaries, certain judgments or uninsured losses, changes in control and certain liabilities related to ERISA based plans. On December 27, 2017, the Company drew $10,000,000 under the Facility to finance a portion of the cash consideration payable to the Seller pursuant to the Share Purchase Agreement. Debt issuance costs of $113,000 for the Facility were recorded as a discount and will be amortized over the life of the Facility. As of March 31, 2018, the discount was $103,977. Future maturities of the loans at March 31, 2018 are as follows: For the year ending March 31, 2019 $ 1,600,000 2020 1,600,000 2021 1,600,000 2022 1,600,000 2023 3,200,000 Thereafter - Total $ 9,600,000

CAPITAL STOCK

CAPITAL STOCK	3 Months Ended
	Mar. 31, 2018
Stockholders' Equity Note [Abstract]
CAPITAL STOCK	Common Stock During the first quarter of 2018, the Company issued 200,000 shares of common stock valued at $318,000 to a consultant for services rendered. During the first quarter of 2018, the seller of Pair Networks Inc., returned $18,499 shares valued at $29,278 to the company as per the terms of the acquisition agreement dated December 27, 2017 in connect the closing adjustment for the net-working capital provision. During the first quarter 2017, the Company issued 3,650,000 shares of common stock valued at $1,752,000 to officers and directors.

DEFERRED REVENUE

DEFERRED REVENUE	3 Months Ended
	Mar. 31, 2018
Deferred Revenue [Abstract]
DEFERRED REVENUE	Deferred revenue consists of the following: March 31, 2018 December 31, 2017 Current: Hosting services $ 1,501,482 $ 1,032,000 Domains 295,757 104,172 Media subscription 112,885 111,514 $ 1,910,125 $ 1,247,686 Noncurrent: Hosting services 79,752 50,351 Domains 181,062 83,266 $ 2,170,939 $ 1.381.303 The increase in the deferred revenue balance is primarily driven by payments received in advance of satisfying our performance obligations, offset by revenue recognized during the three months ended March 31, 2018 that was included in the deferred revenue balance as of December 31, 2017. The deferred revenue balance as of March 31, 2018 represents our aggregate remaining performance obligations that will be recognized as revenue over the period in which the performance obligations are satisfied. Deferred revenue as of March 31, 2018 is expected to be recognized as revenue as follows: Remainder of 2018 2019 2020 2021 2022 Thereafter Total Domains $ 239,758 $ 119,934 $ 52,213 $ 32,902 $ 23,102 $ 8,610 $ 476,819 Hosting 1,417,173 164,062 - - - - 1,581,235 Media Subscription 109,798 3,087 - - - 112,885 $ 1,766,729 $ 287,083 $ 52,513 $ 32,902 $ 23,102 $ 8,610 $ 2,170,939 Disaggregated revenue consists of following: Three Months Ended March 31, 2018 2017 Hosting services $ 2,061,495 $ - Podcast Hosting 2,501,107 1,931,188 Advertising 320,664 480,891 Domains 71,796 - Other 90,028 82,032 $ 5,059,305 $ 2,494,111

INCOME TAXES

INCOME TAXES	3 Months Ended
	Mar. 31, 2018
Income Tax Disclosure [Abstract]
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 March 31, 2018 and 2017, the total of all deferred tax assets was $3,303,428 and $3,876,789, respectively, and the total of the deferred tax assets related to goodwill was $1,890,006 and $2,214,117, 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 established a valuation allowance equal to the deferred tax asset. The change in the valuation allowance for the three months ended March 31, 2018 and 2017 was $(155,239) and $(127,777), respectively. The components of income tax expense (benefit) from continuing operations for the three months ended March 31, 2018 and 2017 consist of the following: For the Three Months Ended March 31, 2018 2017 Current tax expense: Federal $ - $ - State - - Current tax expense - - Deferred tax expense (benefit): Depreciation (219,281 ) - Intangible Assets 41,290 127,777 Valuation Allowance (155,239 ) (127,777 ) Net operating loss carryforward 333,230 (307,256 ) Subtotal deferred tax expense/(benefit) - (307,256 ) Income tax expense/(benefit) $ - $ (307,256 ) 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 Company’s effective rate is as follows: For the Three Months Ended March 31, 2018 2017 Computed tax at the expected statutory rate $ 112,134 $ (257,854 ) State and local income taxes, net of federal 42,405 (49,906 ) Other non-deductible expenses 700 504 Valuation Allowance (155,239 ) - Income tax expense/(benefit) $ - $ (307,256 ) The temporary differences, tax credits and carryforwards gave rise to the following deferred tax asset at March 31, 2018 and 2017: March 31, March 31, 2018 2017 Net deferred tax assets (liabilities): Depreciation and amortization 353,435 - Goodwill - impaired 2,066,632 2,903,618 Intangible assets – tax amortization (4,090,793 ) (5,117,735 ) Net operating loss carryforward 4,974,154 6,090,906 Valuation allowance (3,303,428 ) (3,569,533 ) Netterm deferred tax assets (liabilities)$ $ - 307,256

LEASES

LEASES	3 Months Ended
	Mar. 31, 2018
Leases [Abstract]
LEASES	Operating Lease The future minimum lease payments for non-cancelable operating leases having remaining terms in excess of one year as of March 31, 2018 are as follows: Year ending March 31: Lease Payments 2019 466,260 2020 466,260 2021 466,260 2022 262,176 Thereafter 4,841 Total Minimum Lease Payment $ 1,665,797 Lease expense charged to operations was $153,337 and $74,399 for the three months ended March 31, 2018 and 2017, respectively.

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
	Mar. 31, 2018
Earnings Per Share [Abstract]
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 Ended March 31, 2018 2017 Income(loss) from operations available to common stockholders(numerator)$ $ 532,915 (451,138 ) Net income (loss) available to common stockholders (numerator) 532,915 (451,138 ) Weighted average number of common shares outstanding during the period used in earnings per share (denominator) 29,644,362 23,725,860

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	After the Spin-Off, FAB Universal Corp. (“FAB”), the former parent company of the Company, 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, the Company 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 2017.

SEGMENT REPORTING

SEGMENT REPORTING	3 Months Ended
	Mar. 31, 2018
Segment Reporting [Abstract]
SEGMENT REPORTING	ASC 280, “Segment Reporting”, establishes standards for reporting information about operating segments on a basis consistent with the Company's internal organizational structure as well as information about geographical areas, business segments and major customers in financial statements for details on the Company's business segments. The Company is engaged in providing hosting services. The Company's chief operating decision maker (“CODM”) has been identified as the CEO who reviews the financial information of separate operating segments when making decisions about allocating resources and assessing performance of the group. Based on management's assessment, the Company has determined that it has two operating segments as of March 31, 2018 which are podcast hosting services (Libsyn) and internet hosting services (Pair). The following table presents summary information by segment for the three months ended March 31, 2018 and 2017, respectively: 2018 2017 (in thousands) Libsyn Pair Total Libsyn Pair Total Revenue $ 2,882 $ 2,177 $ 5,059 $ 2,494 $ - $ 2,494 Cost of revenue 534 173 707 617 - 617 Gross margin 2,348 2,004 4,352 1,877 - 1,877 Total assets $ 17,682 $ 18,177 $ 35,859 $ 17,569 $ - $ 17,569 Depreciation and amortization $ 8 $ 759 $ 767 $ 4 $ - $ 4

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2018
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	Management has evaluated subsequent events through the date of the filing of this report.

SUMMARY OF SIGNIFICANT ACCOUN18

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
Organization	Liberated Syndication Inc., (“Company”, “parent”), a Nevada Corporation, was organized on September 30, 2015. Webmayhem, Inc. (“Libsyn”), a Pennsylvania corporation, currently a wholly owned subsidiary of the Company, was originally organized on January 1, 2001. Libsyn provides podcast hosting services for producers of content. Libsyn also offers ad insertion on certain of the producers’ content. On December 27, 2017, the Company purchased all the issued and outstanding shares of Pair Networks Inc., (“Pair”), a Pennsylvania corporation, and subsidiaries Ryousha Kokusai, LLC (”Ryousha”) and 660837 N.B., Inc. (“NB”), in a transaction accounted for as a purchase. Pair provides web hosting services and domain name registrations.
Prior Period Reclassifications	Reclassifications of certain immaterial prior period amounts have been made to conform to the current period presentation.
Consolidation	The financial statements presented reflect the accounts of the parent, Libsyn, Ryousha, NB and Pair. All inter-company transactions have been eliminated in consolidation.
Accounting Estimates	The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Management made assumptions and estimates for determining reserve for accounts receivable, depreciation of fixed assets and in determining the impairment of definite life intangible assets and goodwill. Actual results could differ from those estimated by management. Our more significant estimates include: ● the determination of the best estimate of selling price of the deliverables included in multiple-deliverable revenue arrangements; ● the fair value of assets acquired, and liabilities assumed in business acquisitions; ● the assessment of recoverability of long-lived assets, including property and equipment, goodwill and intangible assets; ● the estimated reserve for refunds; ● the estimated useful lives of intangible and depreciable assets; ● the grant date fair value of equity-based awards; ● the recognition, measurement, and valuation of current and deferred income taxes; We periodically evaluate these estimates and adjust prospectively, if necessary. We believe our estimates and assumptions are reasonable; however, actual results may differ from our estimates.
Cash and Cash Equivalents	The Company considers all highly liquid investments with an original maturity date of three months or less when purchased to be cash equivalents. At March 31, 2018, the Company had $6,045,217 cash balances in excess of federally insured limits.
Accounts Receivable	Accounts receivable consist of trade receivables arising in the normal course of business. At March 31, 2018 and 2017, the Company has an allowance for doubtful accounts of $14,000 and $14,000, respectively, which reflects the Company’s best estimate of probable losses inherent in the accounts receivable balance. The Company determines the allowance based on known troubled accounts, historical experience, and other currently available evidence. During the three months ended March 31, 2018 and 2017, the Company adjusted the allowance for bad debt by $0.
Depreciation	Depreciation of property and equipment is provided on the straight-line method over the estimated useful lives.
Long-lived intangible assets	The Company evaluates its long-lived assets for impairment whenever events or change in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the asset to the future net undiscounted cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is the excess of the carrying amount over the fair value of the asset.
Software Development Costs	Software development costs associated with software to be sold, leased, or for internal use are expensed as incurred until technological feasibility, defined as a working model or prototype, has been established. At that time, such costs are capitalized until the product is available for general release. To date, costs incurred between the completion of a working model and the point at which the product is ready for general release have been insignificant. Accordingly, the Company has expensed all such costs to research and development during the three months ended March 31, 2018 and 2017. Research and development costs totaling $373,326 and 143,042 for the three months ended March 31, 2018 and 2017, respectively, were included in cost of revenue.
Goodwill	Goodwill is evaluated for impairment annually in the fourth quarter of the Company’s fiscal year, and whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable. Triggering events that may indicate impairment include, but are not limited to, a significant adverse change in customer demand or business climate that could affect the value of goodwill or a significant decrease in expected cash flows. Management noted no triggering events during the period ended March 31, 2018.
Fair Value of Financial Instruments	The Company accounts for fair value measurements for financial assets and financial liabilities in accordance with FASB ASC Topic 820. The authoritative guidance, which, among other things, defines fair value, establishes a consistent framework for measuring fair value and expands disclosure for each major asset and liability category measured at fair value on either a recurring or nonrecurring basis. Fair value is defined as the exit price, representing the amount that would either be received to sell an asset or be paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: ● 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, deferred revenue and accrued expenses approximates their recorded values due to their short-term maturities.
Revenue Recognition	On January 1, 2018, we adopted the Financial Accounting Standards Board's (FASB) new revenue recognition standard using the modified retrospective method applied to those contracts not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under the new standard, while prior period amounts were not adjusted and continue to be reported in accordance with our historic accounting. The adoption of the new standard did not have a material impact to our financial statements. Revenue is recognized when control of the promised services is transferred to our customers, in an amount reflecting the consideration we expect to be entitled to in exchange for those services. Certain products are generally sold with a right of return within our policy, which are accounted for as variable consideration when estimating the amount of revenue to recognize. Refunds are estimated at contract inception using the expected value method based on historical refund experience and updated each reporting period as additional information becomes available and only to the extent it is probable a significant reversal of any incremental revenue will not occur. Refunds reduce deferred revenue at the time they are granted and resulted in a reduced amount of revenue recognized over the contract term of the applicable service compared to the amount originally expected. Our revenue is categorized and disaggregated as follows:
Domains	Domains revenue primarily consists of domain registrations and renewals, domain privacy, domain application fees, domain back-orders, aftermarket domain sales and fee surcharges paid to ICANN. Domain registrations provide a customer with the exclusive use of a domain during the applicable contract term. After the contract term expires, unless renewed, the customer can no longer access the domain. Consideration is recorded as deferred revenue when received, which is typically at the time of sale, and revenue, other than for aftermarket domain sales, is recognized over the period in which the performance obligations are satisfied, which is generally over the contract term. Aftermarket domain revenue is recognized when ownership of the domain is transferred to the buyer.
Hosting Services	Hosting services revenue primarily consists of website hosting products, website building products and services, website security products, an online shopping cart and online visibility products and email accounts. Consideration is recorded as deferred revenue when received, which is typically at the time of sale, and revenue is recognized over the period in which the performance obligations are satisfied, which is generally over the contract term.
Podcast Hosting	Podcast hosting publishing services are billed on a month to month basis, with first month’s bill prorated to the end of the month so all performance obligations are satisfied at each month-end. Consideration is recorded as revenue as the services, the underlying performance obligation, are provided and or satisfied and collection is probable which is generally when received.
Media Subscription Services	The Company facilitates the sale of producers’ premium content through the sale of subscriptions. The amount earned per transaction is fixed with the producers determine the price for the sale of each subscription, and the Company earns a percentage of what the customer pays. The performance obligation is providing the subscription hosting medium and billing services. Accordingly, the Company reports premium subscription revenue on a net basis over the subscription service period in which the performance obligation is satisfied.
Advertising	The Company recognizes revenue from the insertion of advertisements in digital media. The performance obligation is the download of the digital media with the advertisement inserted. The performance obligation to recognized advertising revenue is satisfied upon delivery of the media download and collection is probable.
Equity-Based Compensation	Our equity-based awards are comprised of options and stock and are accounted for using the fair value method. We grant options at exercise prices equal to the fair market value of our common stock as reported on the OTCQB on the date of grant. We measure and recognize compensation expense for equity-based awards made to employees and directors based on the grant date fair values of the awards. Stock is measured based on the fair market value of the underlying common stock on the date of grant. For options with service or performance-based vesting conditions, the grant date fair value is estimated using the Black-Scholes option-pricing model, which requires management to make assumptions and apply judgment in determining the grant date fair value. Options and award vest and compensation is recognized over the requisite service period. The measurement date for performance vesting awards is the date on which the applicable performance criteria are approved by our board of directors. Key assumptions used in the determination of fair value for stock options are as follows: Expected term. Expected volatility. Expected dividend yield. Risk-free interest rate.
Leases	The Company accounts for leases in accordance with Accounting Standards Codification (“ASC”) Topic 840. Leases that meet one or more of the capital lease criteria of standard are recorded as a capital lease, all other leases are operating leases.
Earnings Per Share	The Company computes earnings per share in accordance with FASB ASC Topic 260 Earnings Per Share, which requires the Company to present basic earnings per share and diluted earnings per share when the effect is dilutive (see Note 9).
Income Taxes	The Company accounts for income taxes in accordance with FASB ASC Topic 740 Accounting for Income Taxes. This topic requires an asset and liability approach for accounting for income taxes (See Note 7).
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. R

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	3 Months Ended
	Mar. 31, 2018
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment	Life March 31, 2018 December 31, 2017 Furniture, fixtures, and equipment 3-10 yrs $ 8,032,178 $ 8,032,178 Leasehold improvements 3-5 yrs 2,646,400 2,646,400 Software 3 yrs 6,503 6,503 10,685,081 10,685,081 Less: Accumulated depreciation (7,980,627 ) (7,678,056 ) Property & equipment, net $ 2,704,454 $ 3,007,025

GOODWILL AND OTHER DEFINITE-L20

GOODWILL AND OTHER DEFINITE-LIFE INTANGIBLE ASSETS (Tables)	3 Months Ended
	Mar. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Summary of goodwill	March 31, December 31, 2018 2017 Goodwill at beginning of period $ 16,352,069 $ 11,484,251 Acquisition of Pair 36,102 4,867,818 Impairment - - Goodwill at end of period $ 16,388,171 $ 16,352,069
Summary of other intangible assets	Preliminary Fair Value Weighted Average Useful Life (in Years) Accumulated Amortization Net Carrying Amount Customer Relationships $ 3,947,000 7 $ 140,965 $ 3,806,035 Intellectual Property 3,709,000 7 132,464 3,576,536 Trade name 576,000 10 14,400 561,600 Non-compete 1,412,000 2 176,500 1,235,500 Total $ 9,644,000 $ 464,329 $ 9,179,671
Schedule of estimated future amortization expenses related to other intangible assets	For twelve months ending March 31, 2019 $ 1,857,314 2020 1,680,814 2021 1,151,314 2022 1,151,314 2023 1,151,314 Thereafter 2,187,601 Total $ 9,179,671

LOANS (Tables)

LOANS (Tables)	3 Months Ended
	Mar. 31, 2018
Loans Tables
Future maturities of the loans	For the year ending March 31, 2019 $ 1,600,000 2020 1,600,000 2021 1,600,000 2022 1,600,000 2023 3,200,000 Thereafter - Total $ 9,600,000

DEFERRED REVENUE (Tables)

DEFERRED REVENUE (Tables)	3 Months Ended
	Mar. 31, 2018
Deferred Revenue Tables
Schedule of deferred revenue	March 31, 2018 December 31, 2017 Current: Hosting services $ 1,501,482 $ 1,032,000 Domains 295,757 104,172 Media subscription 112,885 111,514 $ 1,910,125 $ 1,247,686 Noncurrent: Hosting services 79,752 50,351 Domains 181,062 83,266 $ 2,170,939 $ 1.381.303
Deferred revenue expected to be recognized	Remainder of 2018 2019 2020 2021 2022 Thereafter Total Domains $ 239,758 $ 119,934 $ 52,213 $ 32,902 $ 23,102 $ 8,610 $ 476,819 Hosting 1,417,173 164,062 - - - - 1,581,235 Media Subscription 109,798 3,087 - - - 112,885 $ 1,766,729 $ 287,083 $ 52,513 $ 32,902 $ 23,102 $ 8,610 $ 2,170,939
Disaggregated revenue	Three Months Ended March 31, 2018 2017 Hosting services $ 2,061,495 $ - Podcast Hosting 2,501,107 1,931,188 Advertising 320,664 480,891 Domains 71,796 - Other 90,028 82,032 $ 5,059,305 $ 2,494,111

INCOME TAXES (Tables)

INCOME TAXES (Tables)	3 Months Ended
	Mar. 31, 2018
Income Tax Disclosure [Abstract]
Schedule of Income Tax Expense	For the Three Months Ended March 31, 2018 2017 Current tax expense: Federal $ - $ - State - - Current tax expense - - Deferred tax expense (benefit): Depreciation (219,281 ) - Intangible Assets 41,290 127,777 Valuation Allowance (155,239 ) (127,777 ) Net operating loss carryforward 333,230 (307,256 ) Subtotal deferred tax expense/(benefit) - (307,256 ) Income tax expense/(benefit) $ - $ (307,256 )
Schedule of Effective Income Tax Rate Reconciliation	For the Three Months Ended March 31, 2018 2017 Computed tax at the expected statutory rate $ 112,134 $ (257,854 ) State and local income taxes, net of federal 42,405 (49,906 ) Other non-deductible expenses 700 504 Valuation Allowance (155,239 ) - Income tax expense/(benefit) $ - $ (307,256 )
Schedule of Deferred Tax Assets and Liabilities	March 31, March 31, 2018 2017 Net deferred tax assets (liabilities): Depreciation and amortization 353,435 - Goodwill - impaired 2,066,632 2,903,618 Intangible assets – tax amortization (4,090,793 ) (5,117,735 ) Net operating loss carryforward 4,974,154 6,090,906 Valuation allowance (3,303,428 ) (3,569,533 ) Netterm deferred tax assets (liabilities)$ $ - 307,256

LEASES (Tables)

LEASES (Tables)	3 Months Ended
	Mar. 31, 2018
Leases [Abstract]
Schedule of Future Minimum Lease Payments	Year ending March 31: Lease Payments 2019 466,260 2020 466,260 2021 466,260 2022 262,176 Thereafter 4,841 Total Minimum Lease Payment $ 1,665,797

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	3 Months Ended
	Mar. 31, 2018
Earnings Per Share [Abstract]
Schedule of Earnings Per Share	For the Three Months Ended March 31, 2018 2017 Income(loss) from operations available to common stockholders(numerator)$ $ 532,915 (451,138 ) Net income (loss) available to common stockholders (numerator) 532,915 (451,138 ) Weighted average number of common shares outstanding during the period used in earnings per share (denominator) 29,644,362 23,725,860

SEGMENT REPORTING (Tables)

SEGMENT REPORTING (Tables)	3 Months Ended
	Mar. 31, 2018
Segment Reporting Tables
Segment Reporting	2018 2017 (in thousands) Libsyn Pair Total Libsyn Pair Total Revenue $ 2,882 $ 2,177 $ 5,059 $ 2,494 $ - $ 2,494 Cost of revenue 534 173 707 617 - 617 Gross margin 2,348 2,004 4,352 1,877 - 1,877 Total assets $ 17,682 $ 18,177 $ 35,859 $ 17,569 $ - $ 17,569 Depreciation and amortization $ 8 $ 759 $ 767 $ 4 $ - $ 4

SUMMARY OF SIGNIFICANT ACCOUN27

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Accounting Policies [Abstract]
Cash balances in excess of federally insured limits	$ 6,045,217
Allowance for doubtful accounts	14,000		$ 14,000
Adjusted allowance for bad debt	0	$ 0
Advertising costs	40,434	8,867
Research and development costs	$ 373,326	$ 143,042

PROPERY AND EQUIPMENT (Details)

PROPERY AND EQUIPMENT (Details) - USD ($)	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Property, Plant and Equipment [Line Items]
Property and equipment	$ 10,685,081	$ 10,685,081
Less: Accumulated depreciation	(7,980,627)	(7,678,056)
Property & equipment, net	2,704,454	3,007,025
Furniture, fixtures and equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment	$ 8,032,178	2,646,400
Furniture, fixtures and equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Life	10 years
Furniture, fixtures and equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Life	3 years
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment	$ 2,646,400	8,032,178
Leasehold Improvements [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Life	3 years
Leasehold Improvements [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Life	5 years
Software [Member]
Property, Plant and Equipment [Line Items]
Property and equipment	$ 6,503	$ 6,503
Life	3 years

GOODWILL AND OTHER DEFINITE-L29

GOODWILL AND OTHER DEFINITE-LIFE INTANGIBLE ASSETS (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Goodwill
Goodwill at beginning of period	$ 16,352,069	$ 11,484,251
Acquisition of Pair	36,102	4,867,818
Goodwill at end of period	$ 16,388,171	$ 16,352,069

GOODWILL AND OTHER DEFINITE-L30

GOODWILL AND OTHER DEFINITE-LIFE INTANGIBLE ASSETS (Details 1) - USD ($)	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Preliminary fair value	$ 9,644,000
Accumulated amortization	464,329
Net carrying amount	9,179,671	$ 9,644,000
Customer relationships
Preliminary fair value	$ 3,947,000
Weighted average useful life	7 years
Accumulated amortization	$ 140,965
Net carrying amount	3,806,035
Intellectual property
Preliminary fair value	$ 3,709,000
Weighted average useful life	7 years
Accumulated amortization	$ 132,464
Net carrying amount	3,576,536
Trade name
Preliminary fair value	$ 576,000
Weighted average useful life	10 years
Accumulated amortization	$ 14,400
Net carrying amount	561,600
Non-compete
Preliminary fair value	$ 1,412,000
Weighted average useful life	2 years
Accumulated amortization	$ 176,500
Net carrying amount	$ 1,235,500

GOODWILL AND OTHER DEFINITE-L31

GOODWILL AND OTHER DEFINITE-LIFE INTANGIBLE ASSETS (Details 2) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
2,019	$ 1,857,314
2,020	1,680,814
2,021	1,151,314
2,022	1,151,314
2,023	1,151,314
Thereafter	2,187,601
Total	$ 9,179,671	$ 9,644,000

LOANS (Details)

LOANS (Details)	Mar. 31, 2018USD ($)
Loans Details
2,019	$ 1,600,000
2,020	1,600,000
2,021	1,600,000
2,022	1,600,000
2,023	3,200,000
Thereafter	0
Total	$ 9,600,000

CAPITAL STOCK (Details Narrativ

CAPITAL STOCK (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Stockholders' Equity Note [Abstract]
Common stock authorized	200,000,000		200,000,000
Common stock par value	$ 0.001		$ 0.001
Common stock outstanding	29,776,974		29,595,473
Common stock shares issued, value	$ (318,000)	$ (1,752,000)

DEFERRED REVENUE (Details)

DEFERRED REVENUE (Details) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Current revenue	$ 1,910,125	$ 1,247,686
Noncurrent revenue	2,170,939	1,381,303
Hosting Services
Current revenue	1,501,482	1,032,000
Noncurrent revenue	1,581,235	50,351
Domains
Current revenue	295,757	104,172
Noncurrent revenue	476,819	83,266
Media Subscription
Current revenue	112,885	$ 111,514
Noncurrent revenue	$ 112,885

DEFERRED REVENUE (Details 1)

DEFERRED REVENUE (Details 1) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Remainder of 2018	$ 1,766,729
2,019	287,083
2,020	52,513
2,021	32,902
2,022	23,102
Thereafter	8,610
Total	2,170,939	$ 1,381,303
Domains
Remainder of 2018	239,758
2,019	119,934
2,020	52,213
2,021	32,902
2,022	23,102
Thereafter	8,610
Total	476,819	83,266
Hosting Services
Remainder of 2018	1,417,173
2,019	164,062
2,020	0
2,021	0
2,022	0
Thereafter	0
Total	1,581,235	$ 50,351
Media Subscription
Remainder of 2018	109,798
2,019	3,087
2,020	0
2,021	0
2,022	0
Thereafter	0
Total	$ 112,885

DEFERRED REVENUE (Details 2)

DEFERRED REVENUE (Details 2) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Revenue	$ 5,059,305	$ 2,494,111
Hosting Services
Revenue	2,061,495	0
Podcast Hosting
Revenue	2,501,107	1,931,188
Advertising
Revenue	320,664	480,891
Domains
Revenue	71,796	0
Other
Revenue	$ 90,028	$ 82,032

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Current tax expense:
Federal	$ 0	$ 0
State	0	0
Current tax expense	0	0
Deferred tax expense (benefit):
Depreciation	(219,281)	0
Intangible Assets	41,290	127,777
Valuation Allowance	(155,239)	(127,777)
Net operating loss carryforward	333,230	(307,256)
Subtotal deferred tax expense/(benefit)	0	(307,256)
Income tax expense/(benefit)	$ 0	$ 0

INCOME TAXES (Details 1)

INCOME TAXES (Details 1) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Effective Income Tax Rate Reconciliation
Computed tax at the expected statutory rate	$ 112,134	$ (257,854)
State and local income taxes, net of federal	42,405	(49,906)
Other non-deductible expenses	700	504
Valuation Allowance	(155,239)	0
Income tax expense/(benefit)	$ 0	$ 0

INCOME TAXES (Details 2)

INCOME TAXES (Details 2) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Net deferred tax assets (liabilities):
Depreciation and amortization	$ 353,435	$ 0
Goodwill - impaired	2,066,632	2,903,618
Intangible assets – tax amortization	(4,090,793)	(5,117,735)
Net operating loss carryforward	4,974,154	6,090,906
Valuation allowance	(3,303,428)	(3,569,533)
Net term deferred tax assets (liabilities)	$ 0	$ 307,256

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Income Tax Disclosure [Abstract]
Total of all deferred tax assets	$ 3,303,428	$ 3,876,789
Deferred tax assets related to goodwill	1,890,006	2,124,117
Change in the valuation allowance	$ (155,239)	$ (127,777)

LEASES (Details)

LEASES (Details)	Mar. 31, 2018USD ($)
Year ending December 31:
2,019	$ 466,260
2,020	466,260
2,021	466,260
2,022	262,176
Thereafter	4,841
Total Minimum Lease Payment	$ 1,665,797

LEASES (Details Narrative)

LEASES (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Operating Leased Assets [Line Items]
Lease expense	$ 153,337	$ 74,399
Pittsburgh Pennsylvania [Member] | Office Space [Member] | Through April 2022 [Member]
Operating Leased Assets [Line Items]
Monthly rent	4,841
Pair [Member] | Office Space [Member] | Through September 2022 [Member]
Operating Leased Assets [Line Items]
Monthly rent	$ 34,400

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Earnings Per Share [Abstract]
Income from operations available to common stockholders (numerator)	$ 532,915	$ (758,394)
Income available to common stockholders (numerator)	$ 532,915	$ (451,138)
Restated Weighted average number of common shares outstanding during the period used in earnings per share (denominator)	29,644,362	23,725,860

SEGMENT REPORTING (Details)

SEGMENT REPORTING (Details) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Revenue	$ 5,059,305	$ 2,494,111
Cost of revenue	707,370	617,054
Gross margin	4,352,000	1,877,000
Total assets	35,859,463	17,569,000	$ 35,068,579
Depreciation and amortization	766,900	4,304
Libsyn
Revenue	2,882,000	2,494,000
Cost of revenue	534,000	617,000
Gross margin	2,348,000	1,877,000
Total assets	17,682,000	17,569,000
Depreciation and amortization	8,000	4,000
Pair
Revenue	2,177,000	0
Cost of revenue	173,000	0
Gross margin	2,004,000	0
Total assets	18,177,000	0
Depreciation and amortization	$ 759,000	$ 0