Liberated Syndication (LSYN) 10-Q 20 May 19 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2019	May 14, 2019
Document and Entity Information [Abstract]
Entity Registrant Name	Liberated Syndication Inc.
Entity Central Index Key	0001667489
Amendment Flag	false
Document Type	10-Q
Document Period End Date	Mar. 31, 2019
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	true
EntityExTransitionPeriod	true
Entity Small Business	true
Entity Current Reporting Status	Yes
Entity Common Stock, Shares Outstanding		29,271,974

UNAUDITED CONDENSED CONSOLIDATE

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Mar. 31, 2019	Dec. 31, 2018
CURRENT ASSETS:
Cash	$ 12,516,269	$ 11,079,941
Accounts receivable, net	398,766	481,921
Prepaid expenses	541,147	449,223
Total current assets	13,456,182	12,011,085
Property and equipment, net	2,094,830	2,229,294
Goodwill	16,388,171	16,388,171
Definite life - intangible assets	7,322,357	7,786,686
Prepaid expense	252,312	191,609
Operating lease right-of-use assets	1,268,326	0
Total assets	40,782,178	38,606,845
CURRENT LIABILITIES:
Accounts payable	567,244	745,889
Accrued expenses	636,153	377,572
Deferred revenue	2,060,901	2,276,079
Current portion of capital lease obligation	55,929	72,986
Current portion of loans payable, net of $26,850 and $28,068 discount, respectively	2,639,817	2,638,599
Current portion of operating lease liabilities	511,751	0
Total current liabilities	6,471,795	6,111,125
LONG TERM LIABILITIES:
Loans payable, net of $45,381 and $51,566 discount, respectively, less current portion	5,287,952	5,681,767
Capital lease obligation, net of current portion	0	831
Deferred revenue, net	450,452	371,938
Operating lease liabilities	756,575	0
Total long-term liabilities	6,494,979	6,054,536
Total liabilities	12,996,774	12,165,661
COMMITMENTS & CONTINGENCIES
STOCKHOLDERS' EQUITY
Common stock	29,722	29,722
Additional paid-in capital	34,857,139	35,010,552
Accumulated deficit	(7,071,457)	(8,599,090)
Total stockholders' equity	27,815,404	26,441,184
Total liabilities and stockholders' equity	$ 40,782,178	$ 38,606,845

UNAUDITED CONDENSED CONSOLIDA_2

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Current loans payable discount	$ 26,850	$ 28,068
Noncurrent loans payable discount	45,381	51,566
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	29,721,974	29,721,974

UNAUDITED CONDENSED CONSOLIDA_3

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Income Statement [Abstract]
Revenue	$ 6,282,979	$ 5,059,305
Costs and operating expenses
Cost of revenue (excluding depreciation and amortization)	839,640	707,370
General and administrative	1,828,539	1,705,312
Technology	454,638	373,326
Selling	194,794	217,002
Customer support	659,868	668,230
Depreciation and amortization	742,097	766,900
Total costs and operating expenses	4,719,576	4,438,140
Operating income	1,563,403	621,165
Interest expense	(86,842)	(100,596)
Interest income	51,951	9,665
Other income (expense)	(879)	2,681
Income from operations before income taxes	1,527,633	532,915
Income tax expense (benefit)	0	0
Net Income	$ 1,527,633	$ 532,915
BASIC AND DILUTED INCOME PER COMMON SHARE	$ 0.05	$ 0.02
BASIC AND DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING	29,721,294	29,644,362

UNAUDITED CONDENSED CONSOLIDA_4

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($)	Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Deficit [Member]	Total
Balance, amount at Dec. 31, 2017	$ 29,596	$ 34,804,457	$ (12,386,887)	$ 22,447,166
Balance, shares at Dec. 31, 2017	29,595,473
Issuance of Common Stock for services, amount	$ 200	317,800		318,000
Issuance of Common Stock for services, shares	200,000
Return of Common Stock for final settlement of Pair Acquisition, amount	$ (19)	(29,260)		(29,279)
Return of Common Stock for final settlement of Pair Acquisition, shares	(18,499)
Net income			532,915	532,915
Balance, amount at Mar. 31, 2018	$ 29,777	35,092,997	(11,853,972)	23,268,802
Balance, shares at Mar. 31, 2018	29,776,974
Balance, amount at Dec. 31, 2018	$ 29,722	35,010,552	(8,599,090)	26,441,184
Balance, shares at Dec. 31, 2018	29,721,974
Recapture of prior period non-cash compensation charges in the current period		(830,500)		(830,500)
Non-cash Compensation awards		677,087		677,087
Net income			1,527,633	1,527,633
Balance, amount at Mar. 31, 2019	$ 29,722	$ 34,857,139	$ (7,071,457)	$ 27,815,404
Balance, shares at Mar. 31, 2019	29,721,974

UNAUDITED CONDENSED CONSOLIDA_5

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Cash Flows from Operating Activities
Net income	$ 1,527,633	$ 532,915
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	742,097	766,900
Issuance of common stock	0	318,000
Non-cash compensation expense, net of recapture	(153,413)	0
Amortization of right-of-use asset	129,495	0
Discount on loan fees	7,403	9,023
Change in assets and liabilities:
Accounts receivable	83,155	(76,925)
Prepaid expenses	(152,627)	(134,237)
Accounts payable	(178,645)	44,031
Accrued expense	258,581	(456,472)
Operating lease liabilities	(129,495)	0
Deferred revenue	(136,664)	789,635
Net Cash Provided by Operating Activities	1,997,520	1,792,870
Cash Flows from Investing Activities:
Purchase of property and equipment	(143,304)	0
Net Cash Used in Investing Activities	(143,304)	0
Cash Flows from Financing Activities:
Repayment on term loan	(400,000)	(400,000)
Repayment on capital lease	(17,888)	(16,970)
Net Cash Used in Financing Activities	(417,888)	(416,970)
Net Increase in Cash	1,436,328	1,375,900
Cash at Beginning of Period	11,079,941	5,211,845
Cash at End of Period	12,516,269	6,587,745
Supplemental Disclosures of Cash Flow Information
Cash paid during the periods for: Interest	76,502	96,730
Cash paid during the periods for: Income taxes	0	0
Right-of-use operating lease assets obtained in exchange for operating lease liabilities	$ 1,397,821	$ 0

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2019
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	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. Libsyn offers hosting and distribution tools, including storage, bandwidth, syndication creation, distribution, and statistics tracking. Libsyn offers an enterprise solution for professional media producers and corporate customers and a premium subscription service that provides producers a custom App and a podcast Website where listeners can access their show, login to purchase a subscription, and get access to premium 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 660837NB, Inc. (NB), in a transaction accounted for as a purchase. Pair Networks Inc. provides web hosting services and domain name registrations. Services include shared web hosting, e-commerce, fully managed virtual private and dedicated servers, customer self-managed dedicated servers, domain-name registration, co-location and content-delivery networks. Pair began operations in August 1995. It incorporated in the state of Pennsylvania in August 1998. Pair’s principal operations are conducted on-site in Pittsburgh, PA. Pair also has an operating site in Denver, Colorado, and a remote site back-up location in Pittsburgh, PA. Ryousha Kokusai, LLC (dba Pair International), a wholly owned single-member limited liability company subsidiary of Pair, was formed on January 1, 2015. The Value Added Tax(VAT) for sales to European Union countries subject to the VAT in Europe are paid through Ryousha Kokusai LLC. There are no operating activities conducted by Ryousha. NB, a Canadian Company was organized on December 2, 2011. NB is used solely for holding the Canadian tradenames and domain names of Pair. There are no operating activities conducted by NB. Basis of Presentation – Our financial statements have been prepared in accordance with generally accepted accounting principles in the United States (GAAP) and include our accounts and the accounts of our subsidiaries. All material intercompany accounts and transactions have been eliminated. Our interim financial statements are unaudited, and in our opinion, include all adjustments of a normal recurring nature necessary for the fair presentation of the periods presented. The results for the interim periods are not necessarily indicative of the results to be expected for any subsequent period or for the year ending December 31, 2019. These financial statements should be read in conjunction with our audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2018 (the 2018 Form 10-K). Prior Period Reclassifications - 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 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, 2019, the Company had $12,245,103 cash balances in excess of federally insured limits. Depreciation – Depreciation of property and equipment is provided on the straight-line method over the estimated useful lives. Accounts Receivable – Accounts receivable consist of trade receivables arising in the normal course of business. At March 31, 2019 and March 31, 2018, 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, 2019 and 2018, the Company adjusted the allowance for bad debt by $0. Definite-life 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. Technology 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 technology during the three months ended March 31, 2019 and 2018. Technology costs totaled $454,638 and $373,326 for the three months ended March 31, 2019 and 2018, respectively. 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, 2019. Advertising Costs – Advertising costs are expensed as incurred and amounted to $21,443 and $40,434 for the three months ending March 31, 2019 and 2018, respectively. 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. The fair value of the Company’s equity-based awards recorded in the Company’s financial statements during the first quarter of 2019 was determined using a Monte Carlo simulation valuation methodology based upon a Geometric Brownian Motion stock path, a Level 3 measurement. Volatility was based on historical volatility of the Company’s common stock over commensurate periods. The expected life was based on the contractual term of the award, and the risk-free interest rate was based on the implied yield available on U.S. Treasury Securities with a maturity similar to the awards’ expected life. 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 Company accounts for revenue in accordance with ASC Topic 606. 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 determining 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 recognize advertising revenue is satisfied upon delivery of the media download and collection is probable. Equity-Based Compensation - Our equity-based awards are comprised of stock and are accounted for using the fair value method. Stock is measured based on the fair market value of the underlying common stock on the date of grant. Awards 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. Leases – On January 1, 2019, the Company adopted Accounting Standards Codification ASC 842, Leases. ASC 842 was issued to increase transparency and comparability among entities by recognizing right-of-use assets and lease liabilities on the balance sheet and disclosing key information about lease arrangements. We elected to transition to ASC 842 using the option to apply the standard on its effective date, January 1, 2019. The comparative periods presented reflect the former lease accounting guidance and the required comparative disclosures are included in Note 8 – Leases. There was not a material cumulative-effect adjustment to our beginning retained earnings as a result of adopting ASC 842. We have recognized additional operating lease assets and obligations of $1.3 million as of March 31, 2019. For additional disclosure and detail, see Note 8 – Leases. Earnings (Loss) 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 - 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	3 Months Ended
	Mar. 31, 2019
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	The following is a summary of property and equipment at: Life March 31, 2019 December 31, 2018 Furniture, fixtures, and equipment 3-10 yrs $ 8,181,313 $ 8,155,322 Leasehold improvements 3 - 5 yrs 2,646,400 2,646,400 Software 3 yrs 379,360 262,046 11,207,073 11,063,768 Less: Accumulated depreciation (9,112,243 ) (8,834,474 ) Property & equipment, net $ 2,094,830 $ 2,229,294 Depreciation expense for the three months ended March 31, 2019 and 2018 was $277,769 and $302,571, respectively.

GOODWILL AND OTHER DEFINITE-LIF

GOODWILL AND OTHER DEFINITE-LIFE INTANGIBLE ASSETS	3 Months Ended
	Mar. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND OTHER DEFINITE-LIFE INTANGIBLE ASSETS	Goodwill - The following is a summary of goodwill: March 31, December 31, 2019 2018 Pair $ 4,903,920 $ 4,903,920 Libsyn 11,484,251 11,484,251 Goodwill at end of period $ 16,388,171 $ 16,388,171 Other definite-life intangible assets - Other intangible assets consist of customer relationships, intellectual property, trade name and non-compete, which were generated through the acquisition of Pair. Management considers these intangible assets to have finite-lives except trade name. These assets are being amortized on a straight-line basis over their estimated useful lives. As of March 31, 2019, 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 $ 704,821 $ 3,242,179 Intellectual Property 3,709,000 7 662,322 3,046,678 Trade name 576,000 10 72,000 504,000 Non-compete 1,412,000 2 882,500 529,500 Total $ 9,644,000 $ 2,321,643 $ 7,322,357 Amortization expense for the three months ended March 31, 2019 and 2018 was $464,329 and $464,329, respectively. The estimated future amortization expenses related to other intangible assets as of March 31, 2019 are as follows: For twelve months ending March 31, 2020 $ 1,680,814 2021 1,151,314 2022 1,151,314 2023 1,151,314 2024 1,151,314 Thereafter 1,036,287 Total $ 7,322,357

LOANS

LOANS	3 Months Ended
	Mar. 31, 2019
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, 2019, $2,000,000 was drawn down on the revolving line with $0 available. The loan currently accrues interest at LIBOR plus 125 base points or prime plus 75 basis points at the election of the Company. As of March 31, 2019, the Company has elected LIBOR plus 125 basis points or 3.7455%. 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. Excess liquidity is obtained when the audited financial statements reflect a cash balance greater than $4,600,000. Based upon the 2018 financial statements, the company demonstrates excess liquidity per the Term Loan agreement. As such, the company has included the expected $1,066,667 payment to the bank as a current liability. As of March 31, 2019, the balance on the term loan was $6,000,000. 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, 2019, the discount was $72,231. Future maturities of the loans at March 31, 2019 are as follows: For the period ending March 31, 2020 $ 2,666,667 2021 1,600,000 2022 1,600,000 2023 1,200,000 2024 933,333 Thereafter - Total $ 8,000,000

CAPITAL STOCK

CAPITAL STOCK	3 Months Ended
	Mar. 31, 2019
Stockholders' Equity Note [Abstract]
CAPITAL STOCK	In prior periods, the Company issued stock-based awards to employees that contained a vesting performance condition related to the occurrence of an uplisting of the Company’s common stock to the NASDAQ stock exchange. Such awards were initially expensed in the period issued as the Company deemed it probable the performance condition would be met. During the first quarter of 2019, approximately $830,500 of previously recognized expense related to these awards was recaptured in accordance with ASC 718, Compensation – Stock Compensation (“ASC 718”) as a credit to general and administrative expense as it became less than probable that such performance conditions would occur within the time specified in the stock award agreements. On March 15, 2019(“Modification Date”), the Company modified certain stock awards previously issued which contained a market condition. The prior agreement required the Company’s adjusted market capitalization to exceed $75 million on five consecutive days by April 23, 2019, whereas the modified award increases the adjusted market capitalization threshold to $80 million on five consecutive days within 18 months of the Modification Date. In accordance with ASC 718, the Company recorded the incremental fair value of the newly modified award over the fair value of the original award, as compensation expense totaling approximately $677,087. No additional stock was issued during the first quarter of 2019. 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 connection with the closing adjustment for the net-working capital provision.

DEFERRED REVENUE

DEFERRED REVENUE	3 Months Ended
	Mar. 31, 2019
Deferred Revenue [Abstract]
DEFERRED REVENUE	Deferred revenue consists of the following: March 31, 2019 December 31, 2018 Current: Hosting services $ 1,262,506 $ 1,601,335 Domains 601,744 535,273 Media subscription 196,651 139,471 $ 2,060,901 $ 2,276,079 Noncurrent: Hosting services 32,935 39,071 Domains 417,517 332,867 $ 2,511,353 $ 2,648,017 Deferred revenue as of March 31, 2019 is expected to be recognized as revenue as follows: Remainder of 2019 2020 2021 2022 2023 Thereafter Total Domains $ 515,868 $ 220,347 $ 118,951 $ 94,112 $ 57,785 $ 12,198 $ 1,019,261 Hosting 1,180,745 110,556 4,140 - - - 1,295,441 Media Subscription 196,651 - - - - - 196,651 $ 1,893,264 $ 330,903 $ 123,091 $ 94,112 $ 57,785 $ 12,198 $ 2,511,353 Disaggregated revenue consists of following: Three Months Ended March 31, 2019 2018 Hosting services $ 2,727,916 $ 2,061,495 Podcast hosting 3,137,817 2,501,107 Advertising 173,641 320,664 Domains 241,531 71,796 Other 2,074 90,028 $ 6,282,979 $ 5,059,305

INCOME TAXES

INCOME TAXES	3 Months Ended
	Mar. 31, 2019
Income Tax Disclosure [Abstract]
INCOME TAXES	The Company has available at March 31, 2019 operating loss carryforwards of approximately $7.8M which may be applied against future taxable income and which expires in various years through 2039. The amount of and ultimate realization of the benefits from the operating loss carryforwards for income tax purposes is dependent, in part, upon the tax laws in effect, the future earnings of the Company, and other future events, the effects of which cannot be determined. Because of the uncertainty surrounding the realization of the loss carryforwards and changes in the ownership of the Company, a valuation allowance has been established equal to the tax effect of the loss carryforwards and, therefore, no deferred tax asset has been recognized for the loss carryforwards. The net deferred tax assets are approximately $2.1M as of March 30, 2019, with an offsetting valuation allowance of the same amount. The change in the valuation allowance for the three months ended March 31, 2019 approximated $440,000.

LEASES

LEASES	3 Months Ended
	Mar. 31, 2019
Leases [Abstract]
LEASES	We lease two office spaces, a Denver data center, and three Xerox machines. These leases are all classified as operating leases. There is one capital lease for Emerson batteries which is immaterial to our condensed consolidated financial statements. Operating lease assets and obligations are reflected within Operating lease right-of-use assets, Current portion of operating lease liabilities, and Operating lease liabilities, respectively, on the Condensed Consolidated Balance Sheet. Lease expense for these leases is recognized on a straight-line basis over the lease term, with variable lease payments recognized in the period those payments are incurred. We have options to renew lease terms for the office spaces and other assets. We evaluate renewal and termination options at the lease commencement date to determine if we are reasonably certain to exercise the option on the basis of economic factors. The weighted average remaining lease term for our operating leases as of March 31, 2019 was 2.52 years. The discount rate implicit within our leases is generally not determinable and therefore the Company determines the discount rate based on its incremental borrowing rate for purposes of classifying the lease and measuring the right-of-use asset and lease liability. The incremental borrowing rate for our leases is determined based on lease term in a similar economic environment, adjusted for impacts of collateral. The weighted average discount rate used to measure our operating lease liabilities as of March 31, 2019 was 4.42%. For the first three months ended, March 31, 2019, cash paid for amounts in the measurement of lease liabilities was $139,298. Total operating lease costs during the same period were $139,712. Maturity of lease liabilities: Twelve months ending March 31, Operating Leases 2020 557,532 2021 495,011 2022 279,554 2023 10,680 2024 - Thereafter - Total lease payments 1,342,777 Less amount of lease payment representing interest (74,451 ) Total present value of lease payments 1,268,326 Twelve months ending December 31, Operating Leases 2020 557,190 2021 513,830 2022 381,239 2023 29,816 2024 - Thereafter - Total lease payments 1,482,075

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
	Mar. 31, 2019
Earnings Per Share [Abstract]
EARNINGS PER SHARE	Basic income (loss) per share is computed by dividing net income (loss) attributable to Liberated Syndication Inc. by the weighted-average number of shares of common stock outstanding during the period. As of March 31, 2019, there were no common stock equivalents outstanding. 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, 2019 2018 Income from operations available to common stockholders (numerator) $ 1,527,633 $ 532,915 Income available to common stockholders (numerator) 1,527,633 532,915 Weighted average number of common shares outstanding during the period used in earnings per share (denominator) 29,721,974 29,644,362

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	Although the Company does not expect to be liable for any obligations not expressly assumed by the Company from the Spin-Off, it is possible that the Company could be required to assume responsibility for certain obligations retained by FAB Universal Corp. (“FAB”), the former parent company of the Company, 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, 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 $111,431 profit sharing contribution to the plan in the first quarter of 2019. The Company entered into employment agreements with it executive officers and management that provide for bonus payments at the end of the agreement, and bonus upon termination without cause, or following a change of control by the Company or by the executive for good reason.

SEGMENT REPORTING

SEGMENT REPORTING	3 Months Ended
	Mar. 31, 2019
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, 2019 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, 2019 and 2018, respectively: 2019 2018 (in thousands) Libsyn Pair Total Libsyn Pair Total Revenue $ 3,335 $ 2,948 $ 6,283 $ 2,882 $ 2,177 $ 5,059 Cost of revenue 567 273 840 534 173 707 Total assets $ 21,999 $ 18,783 $ 40,782 $ 17,682 $ 18,177 $ 35,859 Depreciation and amortization $ 17 $ 725 $ 742 $ 8 $ 759 $ 767

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2019
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	Management has evaluated subsequent events through the date of the filing of this report. No events have occurred that would require adjustments to or disclosure in the financial statements.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2019
Accounting Policies [Abstract]
Organization	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. Libsyn offers hosting and distribution tools, including storage, bandwidth, syndication creation, distribution, and statistics tracking. Libsyn offers an enterprise solution for professional media producers and corporate customers and a premium subscription service that provides producers a custom App and a podcast Website where listeners can access their show, login to purchase a subscription, and get access to premium 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 660837NB, Inc. (NB), in a transaction accounted for as a purchase. Pair Networks Inc. provides web hosting services and domain name registrations. Services include shared web hosting, e-commerce, fully managed virtual private and dedicated servers, customer self-managed dedicated servers, domain-name registration, co-location and content-delivery networks. Pair began operations in August 1995. It incorporated in the state of Pennsylvania in August 1998. Pair’s principal operations are conducted on-site in Pittsburgh, PA. Pair also has an operating site in Denver, Colorado, and a remote site back-up location in Pittsburgh, PA. Ryousha Kokusai, LLC (dba Pair International), a wholly owned single-member limited liability company subsidiary of Pair, was formed on January 1, 2015. The Value Added Tax(VAT) for sales to European Union countries subject to the VAT in Europe are paid through Ryousha Kokusai LLC. There are no operating activities conducted by Ryousha. NB, a Canadian Company was organized on December 2, 2011. NB is used solely for holding the Canadian tradenames and domain names of Pair. There are no operating activities conducted by NB.
Basis of Presentation	Basis of Presentation – Our financial statements have been prepared in accordance with generally accepted accounting principles in the United States (GAAP) and include our accounts and the accounts of our subsidiaries. All material intercompany accounts and transactions have been eliminated. Our interim financial statements are unaudited, and in our opinion, include all adjustments of a normal recurring nature necessary for the fair presentation of the periods presented. The results for the interim periods are not necessarily indicative of the results to be expected for any subsequent period or for the year ending December 31, 2019. These financial statements should be read in conjunction with our audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2018 (the 2018 Form 10-K).
Prior Period Reclassifications	Reclassification of $318,000 common stock in prior periods was recorded as a Non-cash compensation item in the Statement of Operations. Per SAB 14, this has been reclassified and included in General and administrative line item.
Accounting Estimates	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 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	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, 2019, the Company had $12,245,103 cash balances in excess of federally insured limits.
Depreciation	Depreciation – Depreciation of property and equipment is provided on the straight-line method over the estimated useful lives.
Accounts Receivable	Accounts Receivable – Accounts receivable consist of trade receivables arising in the normal course of business. At March 31, 2019 and March 31, 2018, 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, 2019 and 2018, the Company adjusted the allowance for bad debt by $0.
Long-lived intangible assets	Definite-life 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.
Technology Costs	Technology 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 technology during the three months ended March 31, 2019 and 2018. Technology costs totaled $454,638 and $373,326 for the three months ended March 31, 2019 and 2018, respectively.
Goodwill	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, 2019.
Advertising Costs	Advertising Costs – Advertising costs are expensed as incurred and amounted to $21,443 and $40,434 for the three months ending March 31, 2019 and 2018, respectively.
Fair Value of Financial Instruments	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. The fair value of the Company’s equity-based awards recorded in the Company’s financial statements during the first quarter of 2019 was determined using a Monte Carlo simulation valuation methodology based upon a Geometric Brownian Motion stock path, a Level 3 measurement. Volatility was based on historical volatility of the Company’s common stock over commensurate periods. The expected life was based on the contractual term of the award, and the risk-free interest rate was based on the implied yield available on U.S. Treasury Securities with a maturity similar to the awards’ expected life. 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	Revenue Recognition - The Company accounts for revenue in accordance with ASC Topic 606. 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 determining 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 recognize advertising revenue is satisfied upon delivery of the media download and collection is probable.
Equity-Based Compensation	Equity-Based Compensation - Our equity-based awards are comprised of stock and are accounted for using the fair value method. Stock is measured based on the fair market value of the underlying common stock on the date of grant. Awards 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.
Leases	Leases – On January 1, 2019, the Company adopted Accounting Standards Codification ASC 842, Leases. ASC 842 was issued to increase transparency and comparability among entities by recognizing right-of-use assets and lease liabilities on the balance sheet and disclosing key information about lease arrangements. We elected to transition to ASC 842 using the option to apply the standard on its effective date, January 1, 2019. The comparative periods presented reflect the former lease accounting guidance and the required comparative disclosures are included in Note 8 – Leases. There was not a material cumulative-effect adjustment to our beginning retained earnings as a result of adopting ASC 842. We have recognized additional operating lease assets and obligations of $1.3 million as of March 31, 2019. For additional disclosure and detail, see Note 8 – Leases.
Earnings (Loss) Per Share	Earnings (Loss) 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	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	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)	3 Months Ended
	Mar. 31, 2019
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment	Life March 31, 2019 December 31, 2018 Furniture, fixtures, and equipment 3-10 yrs $ 8,181,313 $ 8,155,322 Leasehold improvements 3 - 5 yrs 2,646,400 2,646,400 Software 3 yrs 379,360 262,046 11,207,073 11,063,768 Less: Accumulated depreciation (9,112,243 ) (8,834,474 ) Property & equipment, net $ 2,094,830 $ 2,229,294

GOODWILL AND OTHER DEFINITE-L_2

GOODWILL AND OTHER DEFINITE-LIFE INTANGIBLE ASSETS (Tables)	3 Months Ended
	Mar. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Summary of goodwill	March 31, December 31, 2019 2018 Pair $ 4,903,920 $ 4,903,920 Libsyn 11,484,251 11,484,251 Goodwill at end of period $ 16,388,171 $ 16,388,171
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 $ 704,821 $ 3,242,179 Intellectual Property 3,709,000 7 662,322 3,046,678 Trade name 576,000 10 72,000 504,000 Non-compete 1,412,000 2 882,500 529,500 Total $ 9,644,000 $ 2,321,643 $ 7,322,357
Schedule of estimated future amortization expenses related to other intangible assets	For twelve months ending March 31, 2020 $ 1,680,814 2021 1,151,314 2022 1,151,314 2023 1,151,314 2024 1,151,314 Thereafter 1,036,287 Total $ 7,322,357

LOANS (Tables)

LOANS (Tables)	3 Months Ended
	Mar. 31, 2019
Loans Tables Abstract
Future maturities of the loans	For the period ending March 31, 2020 $ 2,666,667 2021 1,600,000 2022 1,600,000 2023 1,200,000 2024 933,333 Thereafter - Total $ 8,000,000

DEFERRED REVENUE (Tables)

DEFERRED REVENUE (Tables)	3 Months Ended
	Mar. 31, 2019
Deferred Revenue
Schedule of deferred revenue	March 31, 2019 December 31, 2018 Current: Hosting services $ 1,262,506 $ 1,601,335 Domains 601,744 535,273 Media subscription 196,651 139,471 $ 2,060,901 $ 2,276,079 Noncurrent: Hosting services 32,935 39,071 Domains 417,517 332,867 $ 2,511,353 $ 2,648,017
Deferred revenue expected to be recognized	Remainder of 2019 2020 2021 2022 2023 Thereafter Total Domains $ 515,868 $ 220,347 $ 118,951 $ 94,112 $ 57,785 $ 12,198 $ 1,019,261 Hosting 1,180,745 110,556 4,140 - - - 1,295,441 Media Subscription 196,651 - - - - - 196,651 $ 1,893,264 $ 330,903 $ 123,091 $ 94,112 $ 57,785 $ 12,198 $ 2,511,353
Disaggregated revenue	Three Months Ended March 31, 2019 2018 Hosting services $ 2,727,916 $ 2,061,495 Podcast hosting 3,137,817 2,501,107 Advertising 173,641 320,664 Domains 241,531 71,796 Other 2,074 90,028 $ 6,282,979 $ 5,059,305

LEASES (Tables)

LEASES (Tables)	3 Months Ended
	Mar. 31, 2019
Leases [Abstract]
Schedule of Future Minimum Lease Payments	Twelve months ending March 31, Operating Leases 2020 557,532 2021 495,011 2022 279,554 2023 10,680 2024 - Thereafter - Total lease payments 1,342,777 Less amount of lease payment representing interest (74,451 ) Total present value of lease payments 1,268,326 Twelve months ending December 31, Operating Leases 2020 557,190 2021 513,830 2022 381,239 2023 29,816 2024 - Thereafter - Total lease payments 1,482,075

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	3 Months Ended
	Mar. 31, 2019
Earnings Per Share [Abstract]
Schedule of Earnings Per Share	For the Three Months Ended March 31, 2019 2018 Income from operations available to common stockholders (numerator) $ 1,527,633 $ 532,915 Income available to common stockholders (numerator) 1,527,633 532,915 Weighted average number of common shares outstanding during the period used in earnings per share (denominator) 29,721,974 29,644,362

SEGMENT REPORTING (Tables)

SEGMENT REPORTING (Tables)	3 Months Ended
	Mar. 31, 2019
Segment Reporting
Segment Reporting	2019 2018 (in thousands) Libsyn Pair Total Libsyn Pair Total Revenue $ 3,335 $ 2,948 $ 6,283 $ 2,882 $ 2,177 $ 5,059 Cost of revenue 567 273 840 534 173 707 Total assets $ 21,999 $ 18,783 $ 40,782 $ 17,682 $ 18,177 $ 35,859 Depreciation and amortization $ 17 $ 725 $ 742 $ 8 $ 759 $ 767

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Accounting Policies [Abstract]
Cash balances in excess of federally insured limits	$ 12,245,103
Allowance for doubtful accounts	14,000		$ 14,000
Adjusted allowance for bad debt	0	$ 0
Software development costs	454,638	373,326
Advertising costs	$ 21,443	$ 40,434

PROPERY AND EQUIPMENT (Details)

PROPERY AND EQUIPMENT (Details) - USD ($)	3 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Property, Plant and Equipment [Line Items]
Property and equipment	$ 11,207,073	$ 11,063,768
Less: Accumulated depreciation	(9,112,243)	(8,834,474)
Property & equipment, net	2,094,830	2,229,294
Furniture, fixtures and equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment	$ 8,181,313	8,155,322
Furniture, fixtures and equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Life	3 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	$ 2,646,400	2,646,400
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	$ 379,360	$ 262,046
Life	3 years

PROPERY AND EQUIPMENT (Details

PROPERY AND EQUIPMENT (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 277,769	$ 302,571

GOODWILL AND OTHER DEFINITE-L_3

GOODWILL AND OTHER DEFINITE-LIFE INTANGIBLE ASSETS (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Goodwill
Goodwill at beginning of period	$ 16,388,171	$ 0
Acquisition of Pair	4,903,920	4,903,920
Libsyn	11,484,251	11,484,251
Goodwill at end of period	$ 16,388,171	$ 16,388,171

GOODWILL AND OTHER DEFINITE-L_4

GOODWILL AND OTHER DEFINITE-LIFE INTANGIBLE ASSETS (Details 1) - USD ($)	3 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Preliminary fair value	$ 9,644,000
Accumulated amortization	2,321,643
Net carrying amount	7,322,357	$ 7,786,686
Customer relationships
Preliminary fair value	$ 3,947,000
Weighted average useful life	7 years
Accumulated amortization	$ 704,821
Net carrying amount	3,242,179
Intellectual property
Preliminary fair value	$ 3,709,000
Weighted average useful life	7 years
Accumulated amortization	$ 662,322
Net carrying amount	3,046,678
Trade name
Preliminary fair value	$ 576,000
Weighted average useful life	10 years
Accumulated amortization	$ 72,000
Net carrying amount	504,000
Non-compete
Preliminary fair value	$ 1,412,000
Weighted average useful life	2 years
Accumulated amortization	$ 882,500
Net carrying amount	$ 529,500

GOODWILL AND OTHER DEFINITE-L_5

GOODWILL AND OTHER DEFINITE-LIFE INTANGIBLE ASSETS (Details 2) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
2020	$ 1,680,814
2021	1,151,314
2022	1,151,314
2023	1,151,314
2024	1,151,314
Thereafter	1,036,287
Total	$ 7,322,357	$ 7,786,686

LOANS (Details)

LOANS (Details)	Mar. 31, 2019USD ($)
Loans Details Abstract
2020	$ 2,666,667
2021	1,600,000
2022	1,600,000
2023	1,200,000
2024	933,333
Thereafter	0
Total	$ 8,000,000

CAPITAL STOCK (Details Narrativ

CAPITAL STOCK (Details Narrative) - $ / shares	Mar. 31, 2019	Dec. 31, 2018
Stockholders' Equity Note [Abstract]
Common stock authorized	200,000,000	200,000,000
Common stock par value	$ 0.001	$ 0.001
Common stock issued	29,721,974	29,721,974
Common stock outstanding	29,721,974	29,721,974

DEFERRED REVENUE (Details)

DEFERRED REVENUE (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Current revenue	$ 2,060,901	$ 2,276,079
Noncurrent revenue	450,452	371,938
Deferred revenue	2,511,353
Hosting Services
Current revenue	1,262,506	1,601,335
Noncurrent revenue	32,935	39,071
Deferred revenue	1,295,441
Domains
Current revenue	601,744	535,273
Noncurrent revenue	417,517	332,867
Deferred revenue	1,019,261
Media Subscription
Current revenue	196,651	$ 139,471
Deferred revenue	$ 196,651

DEFERRED REVENUE (Details 1)

DEFERRED REVENUE (Details 1)	Mar. 31, 2019USD ($)
Remainder of 2019	$ 1,893,264
2020	330,903
2021	123,091
2022	94,112
2023	57,785
Thereafter	12,198
Total	2,511,353
Domains
Remainder of 2019	515,868
2020	220,347
2021	118,951
2022	94,112
2023	57,785
Thereafter	12,198
Total	1,019,261
Hosting Services
Remainder of 2019	1,180,745
2020	110,556
2021	4,140
2022	0
2023	0
Thereafter	0
Total	1,295,441
Media Subscription
Remainder of 2019	196,651
2020	0
2021	0
2022	0
2023	0
Thereafter	0
Total	$ 196,651

DEFERRED REVENUE (Details 2)

DEFERRED REVENUE (Details 2) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Revenue	$ 6,282,979	$ 5,059,305
Hosting Services
Revenue	2,727,916	2,061,495
Podcast Hosting
Revenue	3,137,817	2,501,107
Advertising
Revenue	173,641	320,664
Domains
Revenue	241,531	71,796
Other
Revenue	$ 2,074	$ 90,028

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Income Tax Disclosure [Abstract]
Total of all deferred tax assets	$ 2,149,913	$ 2,548,929
Deferred tax assets related to goodwill	2,465,192	2,341,897
Change in the valuation allowance	$ (399,016)	$ 155,239

LEASES (Details)

LEASES (Details)	Mar. 31, 2019USD ($)
Leases [Abstract]
2020	$ 557,532
2021	495,011
2022	279,554
2023	10,680
2024	0
Therafter	0
Total payments	1,342,777
Less: imputed interest	(74,451)
Total operating lease liability	1,268,326
Year ending December 31:
2020	557,190
2021	513,830
2022	381,239
2023	29,816
2024	0
Thereafter	0
Total Minimum Lease Payment	$ 1,482,075

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Earnings Per Share [Abstract]
Income from operations available to common stockholders (numerator)	$ 1,527,633	$ 532,915
Income available to common stockholders (numerator)	$ 1,527,633	$ 532,915
Restated Weighted average number of common shares outstanding during the period used in earnings per share (denominator)	29,721,294	29,644,362

SEGMENT REPORTING (Details)

SEGMENT REPORTING (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Revenue	$ 6,283	$ 5,059
Cost of revenue	840	707
Total assets	40,782	35,859
Depreciation and amortization	742	767
Libsyn
Revenue	3,335	2,882
Cost of revenue	567	534
Total assets	21,999	17,682
Depreciation and amortization	17	8
Pair
Revenue	2,948	2,177
Cost of revenue	273	173
Total assets	18,783	18,177
Depreciation and amortization	$ 725	$ 759