Liberated Syndication (LSYN) 10-K 15 May 20 2019 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2019	May 14, 2020	Jun. 30, 2019
Document and Entity Information [Abstract]
Entity Registrant Name	Liberated Syndication Inc.
Entity Central Index Key	0001667489
Amendment Flag	false
Document Type	10-K
Document Period End Date	Dec. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--12-31
Entity Interactive Data Current	Yes
Entity Incorporation, State or Country Code	NV
Entity File Number	000-55779
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	true
EntityExTransitionPeriod	true
Entity Small Business	true
Entity Shell Company	false
Entity Current Reporting Status	Yes
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Common Stock, Shares Outstanding		29,346,974
Entity Public Float			$ 60,914,352

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2019	Dec. 31, 2018
CURRENT ASSETS:
Cash	$ 16,621,272	$ 11,079,941
Accounts receivable, net	549,044	481,921
Prepaid expenses	614,417	449,223
Total current assets	17,784,733	12,011,085
Property and equipment, net	1,536,930	2,229,294
Definite life - intangible	5,929,371	7,786,686
Prepaid expense	363,091	191,609
Operating lease right-of-use assets	751,731	0
Deferred Tax Asset	1,847,979	1,454,077
Goodwill	16,388,171	16,388,171
Total assets	44,602,006	40,060,922
CURRENT LIABILITIES:
Accounts payable	760,163	745,889
Income taxes payable	2,047,917	868,529
Accrued expenses	1,087,271	377,572
Deferred revenue	2,511,682	2,276,079
Current portion of finance lease obligation	831	72,986
Current portion of loans payable, net	2,643,824	2,638,599
Current portion of operating lease liabilities	408,828	0
Total current liabilities	9,460,516	6,979,654
Loans payable, net	2,104,611	3,681,767
Finance lease obligation, net of current portion	0	831
Deferred revenue, net of current portion	601,234	371,938
Operating lease liabilities, net of current portion	342,903	0
Line of credit	2,000,000	2,000,000
Total long-term liabilities	5,048,748	6,054,536
Total liabilities	14,509,264	13,034,190
COMMITMENTS & CONTINGENCIES
STOCKHOLDERS' EQUITY
Common stock	29,272	29,722
Additional paid-in capital	35,243,171	35,010,552
Accumulated deficit	(5,179,701)	(8,013,542)
Total stockholders' equity	30,092,472	27,026,732
Total liabilities and stockholders' equity	$ 44,602,006	$ 40,060,922

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 14,000	$ 14,000
Common stock authorized	200,000,000	200,000,000
Common stock par value	$ .001	$ 0.001
Common stock outstanding	29,721,974	29,721,974

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Income Statement [Abstract]
Revenue	$ 24,201,629	$ 22,010,132
Costs and operating expenses
Cost of revenue (excluding depreciation and amortization)	3,491,545	3,331,876
General and administrative	8,487,462	6,065,661
Technology	1,971,338	1,842,020
Selling	981,940	846,434
Customer support	2,678,252	2,830,789
Depreciation and amortization	2,910,219	3,013,732
Total costs and operating expenses	20,520,756	17,930,512
Operating income	3,680,873	4,079,620
Interest expense	(308,732)	(387,064)
Interest income	251,510	84,992
Other income (expense)	0	10,249
Total other income (expense)	57,222	(291,823)
Income from operations before income taxes	3,263,651	3,787,797
Income tax benefit (expense)	(789,810)	585,548
Net Income	$ 2,833,841	$ 4,373,345
BASIC AND DILUTED EARNINGS PER COMMON SHARE	$ 0.10	$ 0.15
BASIC AND DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING	29,398,960	29,740,207

STATEMENT OF STOCKHOLDERS' EQUI

STATEMENT OF STOCKHOLDERS' EQUITY - USD ($)	Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Deficit [Member]	Total
Balance, shares at Dec. 31, 2017	29,595,473
Balance, amount at Dec. 31, 2017	$ 29,596	$ 34,804,458	$ (12,386,887)	$ 22,447,167
Issuance of Common Stock for services, amount	$ 200	317,800		318,000
Issuance of Common Stock for services, shares	200,000
Repurchase of Common Stock, amount	$ (55)	(82,445)		(82,500)
Repurchase of Common Stock, shares	(55,000)
Return of Common Stock for final settlement of Pair Acquisition, amount	$ (19)	(29,260)		(29,280)
Return of Common Stock for final settlement of Pair Acquisition, shares	(18,499)
Net income			4,373,345	4,373,345
Balance, shares at Dec. 31, 2018	29,721,974
Balance, amount at Dec. 31, 2018	$ 29,722	35,010,552	(8,013,542)	27,026,732
Recapture of prior period non-cash compensation charges in the current period		(830,500)		(830,500)
Non-cash compensation awards		1,062,669		1,062,669
Stock forfeiture, shares	(450,000)
Stock forfeiture, amount	$ (450)	450		0
Net income			3,590,487	2,833,841
Balance, shares at Dec. 31, 2019	29,271,974
Balance, amount at Dec. 31, 2019	$ 29,272	$ 35,243,171	$ (5,179,701)	$ 30,092,472

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Cash Flows from Operating Activities
Net income	$ 2,833,841	$ 4,373,345
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	2,910,219	3,013,732
Issuance of common stock for services	0	318,000
Non-cash compensation expense, net of recapture	232,169	0
Deferred income taxes	(393,902)	(1,454,077)
Amortization of right-of-use asset	646,090	0
Discount on loan fees	28,068	33,366
Change in assets and liabilities:
Accounts receivable	(67,123)	112,838
Prepaid expenses	(336,675)	(447,332)
Accounts payable	14,274	305,324
Income taxes payable	1,179,389	868,529
Accrued expense	709,698	(391,913)
Operating lease liabilities	(646,090)	0
Deferred revenue	464,899	1,266,714
Net Cash Provided by Operating Activities	7,574,857	7,998,526
Cash Flows from Investing Activities:
Purchase of property & equipment and software development costs	(360,540)	(378,687)
Net Cash Used in Investing Activities	(360,540)	(378,687)
Cash Flows from Financing Activities:
Re-purchase of common stock	0	(82,500)
Repayment on term loan	(1,600,000)	(1,600,000)
Repayment on capital lease	(72,986)	(69,243)
Net Cash Used in Financing Activities	(1,672,986)	(1,751,743)
Net Increase in Cash	5,541,331	5,868,096
Cash and Cash Equivalents at Beginning of Period	11,079,941	5,211,845
Cash and Cash Equivalents at End of Period	16,621,272	11,079,941
Right-of-use operating lease assets obtained in exchange for operating lease liabilities	1,397,821	0
Supplemental Disclosures of Cash Flow Information
Cash paid during the periods for: Interest	(335,294)	350,761
Cash paid during the periods for: Income taxes	4,323	0
Supplemental Disclosures of Cash Flow Investing and Financing Activities
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	12 Months Ended
	Dec. 31, 2019
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Organization 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. Principles of Consolidation Accounting Estimates Our more significant estimates include: ● the assessment of recoverability of long-lived assets, including property and equipment, goodwill and intangible assets; ● 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 Concentration of Credit Risk Accounts Receivable Registry Deposits - Prepaid Domain Name Registry Fees - Property and Equipment Definite-Life Intangible Assets Software Development Costs Debt Issuance 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 - Leases Other Definite-life Intangible Assets - Business Combinations Contingent consideration is adjusted to fair value in subsequent periods as an increase or decrease in general and administrative expenses. Acquisition-related costs are expensed as incurred. See Note 3 to our consolidated financial statements for additional information regarding business combinations. Income Taxes Earnings Per Share Income Taxes Recently Enacted Accounting Standards - In January 2017, the FASB issued ASU 2017-04, Intangibles, Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment Under the new guidance, if a reporting unit’s carrying amount exceeds its fair value, an entity will record an impairment charge based on that difference. The impairment charge will be limited to the amount of goodwill allocated to that reporting unit. The standard eliminates the previous requirement to calculate a goodwill impairment charge by comparing the implied fair value of goodwill with its carrying amount. The new standard becomes effective for us on January 1, 2020. We early adopted the proposed guidance under ASU 2017-04 for the year end December 31, 2018 on a prospective basis. The implementation of ASU 2017-04 did not have a material impact on our consolidated financial statements and related disclosures. Other 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. Reclassifications to Prior Period Financial Statements and Adjustments Certain reclassifications have been made in the Company’s financial statements of the prior year to conform to the current year presentation. $2,000,000 for the line of credit as of December 31, 2018, was reclassified from loans payable, net

PROPERTY & EQUIPMENT

PROPERTY & EQUIPMENT	12 Months Ended
	Dec. 31, 2019
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	The following is a summary of property and equipment at: Life December 31, 2019 December 31, 2018 Furniture, fixtures, and equipment 3-10 yrs $8,262,929 $8,155,322 Leasehold improvements 3 - 5 yrs 2,646,399 2,646,400 Software 3 yrs 514,981 262,046 11,424,309 11,063,768 Less: Accumulated depreciation $(9,887,379) (8,834,474) Property & equipment, net $1,536,930 $2,229,294 Depreciation expense for the periods ended December 31, 2019 and 2018 was $1,052,905 and $1,156,418, respectively.

GOODWILL AND OTHER DEFINITE-LIF

GOODWILL AND OTHER DEFINITE-LIFE INTANGIBLE ASSETS	12 Months Ended
	Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND OTHER DEFINITE-LIFE INTANGIBLE ASSETS	Goodwill The Company followed the guidance in ASC 350-20-35-3 and performed the annual impairment test of goodwill. Using qualitative factors to determine whether it is necessary to perform the goodwill impairment test discussed in paragraphs ASC 350-20-35-4 through 35-13, management concluded that it is more likely than not that the fair value of the Liberated Syndication and Pair reporting units is more than its carrying amount. Therefore, no further testing is performed. Goodwill consists of: December 31, December 31, 2019 2018 Pair $4,903,920 $4,903,920 Libsyn 11,484,251 11,484,251 Total Goodwill $16,388,171 $16,388,171 The following is a summary of goodwill for the Year Ended: December 31, December 31, 2019 2018 Goodwill at beginning of period $16,388,171 $16,352,069 Acquisition of Pair - 36,102 Impairment - - Goodwill at end of period $16,388,171 $16,388,171 As of December 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 $1,127,714 $2,819,286 Intellectual Property 3,709,000 7 1,059,714 2,649,285 Trade name 576,000 10 115,200 460,800 Non-compete 1,412,000 2 1,412,000 - Total $9,644,000 $3,714,628 $5,929,371 The estimated future amortization expenses related to other intangible assets as of December 31, 2018 are as follows: For twelve months ending December 31, 2020 $1,151,314 2021 1,151,314 2022 1,151,314 2023 1,151,314 2024 1,151,315 Thereafter 172,800 Total $5,929,371

LOANS

LOANS	12 Months Ended
	Dec. 31, 2019
Loans Payable [Abstract]
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 December 31, 2019, $2,000,000 was drawn down on the revolving line with $0 available. The due date for the revolving line of credit is December 27, 2022. 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 December 31, 2019, the Company has elected LIBOR plus 125 basis points or 3.055%. The Term Loan is repayable in quarterly installments of $400,000 commencing on March 31, 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 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 2019 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 December 31, 2019, the balance on the term loan was $4,800,000. 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 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 December 31, 2019, the discount was $51,566. Future Maturities of the loans at December 31, 2019 are as follows: For the year ending December 31, 2020 $ 2,666,667 2021 1,600,000 2022 533,333 Total $ 4,800,000

CAPITAL STOCK

CAPITAL STOCK	12 Months Ended
	Dec. 31, 2019
Stockholders' Equity Note [Abstract]
CAPITAL STOCK	Common 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. Per the October 4, 2019 settlement agreement with Camac Fund, LP, and its affiliates Camac Partners, LLC, Camac Capital, LLC, and Eric Shahinian, (collectively, “Camac”), 300,000 of these shares were to be returned to the Company. As of December 31, 2019, this has not yet been completed. The Company is taking the necessary steps to irrevocably cancel these equity awards previously granted to the Company’s Chief Executive Officer and Chief Financial Officer. 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 $677,088. On April 13, 2019, 450,000 shares of common stock were forfeited as certain milestones were not achieved. On December 27, 2019 (“Modification Date”), the Company modified certain stock awards previously issued which contained a market condition. The prior agreement required the Company to obtain an average closing price of $5.00 per share (adjusted for stock splits) for any 10 consecutive trading days, in which case certain employees would retain 25% of the stock. The modification requires the Company to obtain an average closing price of $5.50 per share (adjusted for stock splits for any 10 consecutive trading days, in which case the Employees will retain 100% of their stock. 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 $385,582. 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. Information regarding vested stock awards for the year ended December 31, 2019 is summarized in the table below: Shares Weighted Average Grant Date Fair Value Average Remaining Life Issued and outstanding unvested shares subject to forfeiture at beginning of period 5,175,000 $1.00 0.70 Stock Awards Issued - $- - Awards no-longer subject to forfeiture 397,500 $0.66 N/A Cancelled / Forfeited Awards 450,000 - - Issued and outstanding unvested shares subject to forfeiture at end of period 3,787,500 $1.66 0.70 Per the settlement agreement in the proxy contest with Camac, 300,000 of these shares will be returned to the Company. On February 28, 2020, the Board of Directors approved the termination of John Busshaus. The Company anticipates that the 1,212,500 shares of unvested shares held by Mr. Busshaus will be forfeited and cancelled.

DEFERRED REVENUE

DEFERRED REVENUE	12 Months Ended
	Dec. 31, 2019
Revenue Recognition and Deferred Revenue [Abstract]
DEFERRED REVENUE	Deferred revenue consists of the following: December 31, 2019 December 31, 2018 Current: Hosting services $1,664,811 $1,601,335 Domains 688,717 104,172 Media subscription 158,154 111,514 $2,511,682 $2,276,079 Noncurrent: Hosting services 29,309 39,071 Domains 571,925 83,266 $3,112,916 $2,648,017 Deferred revenue as of December 31, 2019 is expected to be recognized as revenue as follows: 2020 2021 2022 2023 2024 Thereafter Total Domains $688,717 $232,133 $162,659 $116,480 $49,782 $10,870 $1,260,641 Hosting 1,664,811 27,246 2,064 - - - 1,694,121 Media Subscription 158,154 - - - - - 158,154 $2,511,682 $259,379 $164,723 $116,480 $49,782 $10,891 $3,112,916 Disaggregated revenue consists of following: Twelve months ended December 31 2019 2018 Hosting services $8,813,547 $8,896,966 Podcast hosting 13,511,188 10,915,771 Advertising 594,289 1,323,776 Domains 1,018,419 547,770 Other 264,186 325,849 $24,201,629 $22,010,132

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2019
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 December 31, 2019 and 2018, the total of all deferred tax assets was $1,847,979 and $1,454,077, 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. The change in the valuation allowance for the years ended December 31, 2019 and 2018 was $0 and $1,454,077, respectively. The components of income tax expense (benefit) from continuing operations for the Years ended December 31, 2019 and 2018 consist of the following: For the Years Ended December 31, Current tax expense: 2019 2018 Federal $ 1,162,480 $ 868,529 State 25,555 - Current tax expense $ 1,183,712 868,529 Deferred tax (benefit) expense: Depreciation and amortization (611,146) (164,862) Tax Depreciation and Amortization 30,467 - Bonus Accrual (63,000) - Intangible Assets – Tax Amortization 229,071 - Non-cash compensation 70,753 (1,261,155) Deferred Revenue (50,047) (28,060) Total deferred tax benefit (393,902) (1,454,077) Total income tax (benefit) expense $ 789,810 $ (585,548) A reconciliation of income tax expense at the federal statutory rate to income tax expense at the company’s effective rate is as follows: For the Years Ended December 31, 2019 2018 Computed tax at the expected statutory rate $ 1,162,480 $ 868,529 State and local income taxes, net of federal 21,232 - Valuation Allowance (393,902) (1,454,077) Total income tax (benefit) expense $ 789,810 $ (585,548) The temporary differences, tax credits and carryforwards gave rise to the following deferred tax asset at December 31, 2019 and 2018: December 31, December 31, 2019 2018 Current deferred tax assets (liabilities): Bonus accrual $ 63,000 $ - Total current deferred tax assets 63,000 - Long-term deferred tax assets (liabilities): Intangible assets – tax amortization (229,071) - Depreciation and amortization 745,541 164,862 Non-cash compensation 1,190,402 1,261,155 Deferred Revenue 78,107 28,060 Total long-term deferred tax assets $ 1,784,979 $ 1,454,077 Net term deferred tax assets $ 1,847,979 $ 1,454,077 At December 31, 2019, the company has loss carryforwards of $0. The Internal Revenue Service (the “IRS”) is performing its field audit of the Company’s federal income tax returns and is currently examining the years 2016 through 2018. Management believes that adequate provisions have been made for any adjustments that may result from tax examinations. However, the outcome of tax audits cannot be predicted with certainty. If any issues addressed in the Company’s tax audits are resolved in a manner not consistent with management’s expectations, the Company could be required to adjust its provision for income taxes in the period such resolution occurs. We file U.S. federal, and U.S. states returns, and we are generally no longer subject to tax examinations for years prior to 2015 for U.S. federal and U.S. states tax returns.

LEASES

LEASES	12 Months Ended
	Dec. 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 finance lease for Emerson batteries which is immaterial to our 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 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 December 31, 2019 was 1.84 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 December 31, 2019 was 4.42%. As of, December 31, 2019, cash paid for amounts in the measurement of lease liabilities was $557,190. Total operating lease costs during the same period were $558,849. Maturity of lease liabilities: Twelve months ending December 31, Operating Leases 2020 $ 433,426 2021 320,936 2022 29,816 Total lease payments 784,178 Less amount of lease payment representing interest (32,448) Total present value of lease payments $ 751,730 As previously disclosed in our 2018 Form 10-K under the prior guidance of ASC 840, minimum payments under operating lease agreements as of December 31, 2018 were as follows: Twelve months ending December 31, Operating Leases 2019 $ 544,284 2020 493,164 2021 365,582 2022 19,812 Total lease payments $ 1,422,822

EARNINGS PER SHARE

EARNINGS PER SHARE	12 Months Ended
	Dec. 31, 2019
Earnings Per Share [Abstract]
EARNINGS PER SHARE	Basic income per share is computed by dividing net income attributable to Liberated Syndication Inc. by the weighted-average number of shares of common stock outstanding during the period. As of December 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: December 31, 2019 December 31, 2018 Income from operations available to common stockholders (numerator)$ $2,833,841 4,373,345 Income available to common stockholders (numerator) 2,833,841 4,373,345 Weighted average number of common shares outstanding during the period used in earnings per share (denominator) 29,398,960 29,740,207

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	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 during 2019. The Company entered into employment agreements with its 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. As of December 31, 2019, the bonus accrual totals $940,000. On September 30, 2019, the Securities and Exchange Commission (“SEC”) filed a complaint in the Southern District of New York regarding certain actions by Christopher Spencer and John Busshaus involving the Company’s previous parent company, FAB Universal Corp. (“FAB”). According to the SEC’s complaint, between 2012 and 2013, Mr. Spencer and Mr. Busshaus the former Chief Executive Officer and former Chief Financial Officer of FAB, respectively, negligently used a series of misrepresentations about the capabilities and growth prospects of a central component of FAB’s business in China, namely FAB’s multi-media kiosk business. Mr. Spencer and Mr. Busshaus have accepted the SEC’s offer of settlement without admitting or denying the allegations or findings contained in the complaint. The SEC's complaint charged Spencer and Busshaus with violations of the antifraud provisions of Sections 17(a)(2) and (3) of the Securities Act of 1933. Without admitting or denying the allegations, Spencer and Busshaus have agreed to bifurcated settlements where they will be permanently enjoined from violating these provisions. The settlements, which received court approval, reserve the issues of disgorgement, prejudgment interest, and civil penalties for further determination by the court upon motion of the SEC. On October 2, 2019, the Company formally accepted the resignation John Busshaus, the former Chief Financial Officer of the Company (“Busshaus”). The Company received a letter from Mr. Busshaus, providing notice of his intent to resign for “Good Reason” as defined in Section 8(c) of the Employment Agreement pursuant to which he claimed to be entitled to the “Effect of Termination” under the Employment Agreement in Section 9(c). The Company has taken the position that it does not believe that there was “Good Reason” for his resignation and therefore is not entitled to the “Effect of Termination” under the Employment Agreement in Section 9(c). On April 24, 2020 Busshaus filed a complaint against the Company with the American Arbitration Association (AAA) asserting claims arising from his employment relationship with Libsyn, including, inter alia, claims for wages, compensation and benefits, and claims prohibiting unlawful discharge and wrongful termination. Busshaus claims that he resigned for “Good Reason” as defined in Section 8(c) of his Employment Agreement pursuant to which he claims to be entitled to the “Effect of Termination” under the Employment Agreement in Section 9(c). The Company denies Busshaus’ claims in their entirety.

SEGMENT REPORTING

SEGMENT REPORTING	12 Months Ended
	Dec. 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 December 31, 2019 which are podcast hosting services (Libsyn) and internet hosting services (Pair). The following table presents summary information by segment for the twelve months ended December 31, 2019 and 2018, respectively: 2019 2018 (in thousands) Libsyn Pair Total Libsyn Pair Total Revenue $ 14,486 $ 9,716 $ 24,202 $ 12,630 $ 9,380 $ 22,010 Cost of revenue 2,368 1,123 3,491 2,516 816 3,332 Total assets $ 26,934 $ 17,668 $ 44,602 $ 22,329 $ 17,732 $ 40,061 Depreciation and amortization $ 82 $ 2,828 $ 2,910 $ 46 $ 2,968 $ 3,014

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	12 Months Ended
	Dec. 31, 2019
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	On February 18, 2020 the Company modified and extended the Stock Agreements dated December 28, 2017 (Original Agreement) for four key employees. The Company modified and extended certain milestones which include the up-listing of the common stock to the Nasdaq or NYSE and increasing the average closing price per share for any 10 consecutive trading days to $5.50 per share. A total of 500,000 restricted shares of common stock are eligible for vesting based on the amended agreement. On February 18, 2020, the Company amended stock agreements entered into with two Board members, each with respect to 200,000 shares of common stock. The Company modified the stock agreements for the stock to vest immediately in the event of certain changes in control of the Company. A total of 400,000 restricted shares of common stock were covered by the amended agreement. On February 18, 2020, the Company awarded 25,000 shares of restricted common stock to three members of the Board of Directors, which shares shall vest in four equal quarterly tranches at the end of each quarter of 2020 and all such shares shall vest immediately in the event of certain changes in control of the Company. On February 28, 2020, the Board of Directors approved the termination of John Busshaus. As of December 31, 2019, the Company has reversed the $560,000 bonus which was accruing during 2019. On April 24, 2020 Busshaus filed a complaint against the Company with the American Arbitration Association (AAA) asserting claims arising from his employment relationship with Libsyn, including, inter alia

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2019
Accounting Policies [Abstract]
Organization	Liberated Syndication Inc., (“Company”, “parent”), a Nevada Corporation, was organized on September 30, 2015. Webmayhem, Inc. (“Libsyn”), a Pennsylvania corporation, a wholly owned subsidiary of the Company, was 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.
Principles of consolidation	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. The financial statements presented reflect the accounts of parent, Libsyn, Ryousha, NB and Pair. All material intercompany accounts and transactions have been eliminated.
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. Our more significant estimates include: ● the assessment of recoverability of long-lived assets, including property and equipment, goodwill and intangible assets; ● 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 December 31, 2019, the Company had $16,621,272 in cash which included $16,145,362 cash balances in excess of federally insured limits.
Concentration of credit risk	Financial instruments that potentially subject the Company to a concentration of credit risk consist primarily of cash, cash equivalents and account receivable. Management’s assessment of the Company’s credit risk for cash and cash equivalents is low as cash and cash equivalents are held in financial institutions believed to be credit worthy. No single customer represented over 10% of our total revenue for any period presented. As of December 31, 2019, two customers individually accounted for 13% and 5%, respectively, of our total accounts receivable. In 2018, the same two customers individually accounted for 18% and 12%, respectively.
Accounts receivable	Accounts receivable consist of trade receivables arising in the normal course of business. At December 31, 2019 and 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 years ended December 31, 2019 and 2018, the Company adjusted the allowance for bad debt by $0.
Registry deposits	Registry deposits represent amounts on deposit with, or receivable from, various domain name registries to be used by us to make payments for future domain registrations or renewals.
Prepaid domain name registry fees	Prepaid domain name registry fees represent amounts charged by a registry at the time a domain is registered or renewed. These amounts are amortized to cost of revenue over the same period revenue is recognized for the related domain registration contracts.
Property and Equipment	Property and equipment is stated at cost. Depreciation is recorded over the shorter of the estimated useful life or the lease term of the applicable asset using the straight-line method beginning on the date an asset is placed in service. Maintenance and repairs are charged to expense as incurred.
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.
Software development costs	We account for software development costs, including costs to develop software products or the software component of products to be marketed to external users, as well as software programs to be used solely to meet our internal needs in accordance with ASC Topic 985 Software. 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 and amortized over its useful life.
Debt issuance costs	We defer and amortize issuance costs, underwriting fees and related expenses incurred in connection with the issuance of debt instruments using the effective interest method over the terms of the respective instruments. Debt issuance costs, other than those associated with our revolving credit loan, are reflected as a direct reduction (discount) of the carrying amount of the related debt liability.
Goodwill	Goodwill is evaluated for impairment annually and whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable. The Company performed the annual impairment test of goodwill as of December 31, 2019. 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. The company recorded no impairment charge for goodwill during the years ended December 31, 2019 and 2018.
Advertising costs	Advertising costs are expensed as incurred and amounted to $83,209 and $122,424 for the periods ending December 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. 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. 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	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	The Company accounts for leases in accordance with Accounting Standards Codification (“ASC”) Topic 842. Leases that meet one or more of the finance lease criteria of standard are recorded as a finance lease, all other leases are operating leases.
Other definite-life intangible assets	Other intangible assets consist of customer relationships, intellectual property, trade name and non-compete agreement, which were generated through the acquisition of Pair. Management considers these intangible assets to have finite-lives. These assets are being amortized on a straight-line basis over their estimated useful lives.
Business combinations	We include the results of operations of acquired businesses in our consolidated financial statements as of the respective dates of acquisition. Accounting for business combinations requires us to make significant estimates and assumptions, especially at the acquisition date, with respect to tangible and intangible assets acquired and liabilities assumed and pre-acquisition contingencies. The purchase price of acquisitions, including estimates of the fair value of contingent consideration when applicable, is allocated to the tangible and intangible assets acquired and the liabilities assumed based on their estimated fair values on the respective acquisition dates, with the excess recorded as goodwill. We use our best estimates and assumptions to accurately assign fair value to the tangible and intangible assets acquired and liabilities assumed at the acquisition date. The estimates are inherently uncertain and subject to refinement. We continue to collect information and reevaluate these estimates and assumptions quarterly and record any adjustments to the preliminary estimates to goodwill provided we are within the measurement period. Contingent consideration is adjusted to fair value in subsequent periods as an increase or decrease in general and administrative expenses. Acquisition-related costs are expensed as incurred. See Note 3 to our consolidated financial statements for additional information regarding business combinations.
Income taxes	The Company accounts for income taxes using the liability method, which requires the determination of deferred tax assets and liabilities based on the differences between the financial and tax basis of assets and liabilities, using enacted tax rates in effect for the year in which differences are expected to reverse. Deferred tax assets are adjusted by a valuation allowance, if based on the weight of available evidence it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company anticipates earnings in the near future and the realization of the benefit of the deferred tax assets.
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).
Recently enacted accounting standards	On January 1, 2019, the Company adopted Accounting Standards Codification (ASC) 842, Leases (ASC 842). 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 4 – Leases. There was not a material cumulative-effect adjustment to our beginning retained earnings as a result of adopting ASC 842. In January 2017, the FASB issued ASU 2017-04, Intangibles, Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment Under the new guidance, if a reporting unit’s carrying amount exceeds its fair value, an entity will record an impairment charge based on that difference. The impairment charge will be limited to the amount of goodwill allocated to that reporting unit. The standard eliminates the previous requirement to calculate a goodwill impairment charge by comparing the implied fair value of goodwill with its carrying amount. The new standard becomes effective for us on January 1, 2020. We early adopted the proposed guidance under ASU 2017-04 for the year end December 31, 2018 on a prospective basis. The implementation of ASU 2017-04 did not have a material impact on our consolidated financial statements and related disclosures. Other 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.
Reclassifications to Prior Period Financial Statements and Adjustments	Certain reclassifications have been made in the Company’s financial statements of the prior year to conform to the current year presentation. $2,000,000 for the line of credit as of December 31, 2018, was reclassified from loans payable, net

PROPERTY & EQUIPMENT (Tables)

PROPERTY & EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2019
Property, Plant and Equipment [Abstract]
Schedule of property and equipment	Life December 31, 2019 December 31, 2018 Furniture, fixtures, and equipment 3-10 yrs $8,262,929 $8,155,322 Leasehold improvements 3 - 5 yrs 2,646,399 2,646,400 Software 3 yrs 514,981 262,046 11,424,309 11,063,768 Less: Accumulated depreciation $(9,887,379) (8,834,474) Property & equipment, net $1,536,930 $2,229,294

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	12 Months Ended
	Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Summary of goodwill	Goodwill consists of: December 31, December 31, 2019 2018 Pair $4,903,920 $4,903,920 Libsyn 11,484,251 11,484,251 Total Goodwill $16,388,171 $16,388,171 The following is a summary of goodwill for the Year Ended: December 31, December 31, 2019 2018 Goodwill at beginning of period $16,388,171 $16,352,069 Acquisition of Pair - 36,102 Impairment - - 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 $1,127,714 $2,819,286 Intellectual Property 3,709,000 7 1,059,714 2,649,285 Trade name 576,000 10 115,200 460,800 Non-compete 1,412,000 2 1,412,000 - Total $9,644,000 $3,714,628 $5,929,371
Schedule of estimated future amortization expenses related to other intangible assets	For twelve months ending December 31, 2020 $1,151,314 2021 1,151,314 2022 1,151,314 2023 1,151,314 2024 1,151,315 Thereafter 172,800 Total $5,929,371

LOANS (Tables)

LOANS (Tables)	12 Months Ended
	Dec. 31, 2019
Loans Payable [Abstract]
Future maturities of the loans	For the year ending December 31, 2020 $ 2,666,667 2021 1,600,000 2022 533,333 Total $ 4,800,000

CAPITAL STOCK (Tables)

CAPITAL STOCK (Tables)	12 Months Ended
	Dec. 31, 2019
Stockholders' Equity Note [Abstract]
Vested stock awards	Shares Weighted Average Grant Date Fair Value Average Remaining Life Issued and outstanding unvested shares subject to forfeiture at beginning of period 5,175,000 $1.00 0.70 Stock Awards Issued - $- - Awards no-longer subject to forfeiture 397,500 $0.66 N/A Cancelled / Forfeited Awards 450,000 - - Issued and outstanding unvested shares subject to forfeiture at end of period 3,787,500 $1.66 0.70

DEFERRED REVENUE (Tables)

DEFERRED REVENUE (Tables)	12 Months Ended
	Dec. 31, 2019
Revenue Recognition and Deferred Revenue [Abstract]
Summary of Deferred revenue	December 31, 2019 December 31, 2018 Current: Hosting services $1,664,811 $1,601,335 Domains 688,717 104,172 Media subscription 158,154 111,514 $2,511,682 $2,276,079 Noncurrent: Hosting services 29,309 39,071 Domains 571,925 83,266 $3,112,916 $2,648,017
Deferred revenue expected to be recognized as revenue	2020 2021 2022 2023 2024 Thereafter Total Domains $688,717 $232,133 $162,659 $116,480 $49,782 $10,870 $1,260,641 Hosting 1,664,811 27,246 2,064 - - - 1,694,121 Media Subscription 158,154 - - - - - 158,154 $2,511,682 $259,379 $164,723 $116,480 $49,782 $10,891 $3,112,916
Summary of Disaggregated revenue	Twelve months ended December 31 2019 2018 Hosting services $8,813,547 $8,896,966 Podcast hosting 13,511,188 10,915,771 Advertising 594,289 1,323,776 Domains 1,018,419 547,770 Other 264,186 325,849 $24,201,629 $22,010,132

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Schedule of income tax expense (benefit)	For the Years Ended December 31, Current tax expense: 2019 2018 Federal $ 1,162,480 $ 868,529 State 25,555 - Current tax expense $ 1,183,712 868,529 Deferred tax (benefit) expense: Depreciation and amortization (611,146) (164,862) Tax Depreciation and Amortization 30,467 - Bonus Accrual (63,000) - Intangible Assets – Tax Amortization 229,071 - Non-cash compensation 70,753 (1,261,155) Deferred Revenue (50,047) (28,060) Total deferred tax benefit (393,902) (1,454,077) Total income tax (benefit) expense $ 789,810 $ (585,548)
Schedule of effective income tax rate reconciliation	For the Years Ended December 31, 2019 2018 Computed tax at the expected statutory rate $ 1,162,480 $ 868,529 State and local income taxes, net of federal 21,232 - Valuation Allowance (393,902) (1,454,077) Total income tax (benefit) expense $ 789,810 $ (585,548)
Schedule of deferred tax assets and liabilities	December 31, December 31, 2019 2018 Current deferred tax assets (liabilities): Bonus accrual $ 63,000 $ - Total current deferred tax assets 63,000 - Long-term deferred tax assets (liabilities): Intangible assets – tax amortization (229,071) - Depreciation and amortization 745,541 164,862 Non-cash compensation 1,190,402 1,261,155 Deferred Revenue 78,107 28,060 Total long-term deferred tax assets $ 1,784,979 $ 1,454,077 Net term deferred tax assets $ 1,847,979 $ 1,454,077

LEASES (Tables)

LEASES (Tables)	12 Months Ended
	Dec. 31, 2019
Leases [Abstract]
Maturity of lease liabilities	Twelve months ending December 31, Operating Leases 2020 $ 433,426 2021 320,936 2022 29,816 Total lease payments 784,178 Less amount of lease payment representing interest (32,448) Total present value of lease payments $ 751,730
Schedule of future minimum lease payments	Twelve months ending December 31, Operating Leases 2019 $ 544,284 2020 493,164 2021 365,582 2022 19,812 Total lease payments $ 1,422,822

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	12 Months Ended
	Dec. 31, 2019
Earnings Per Share [Abstract]
Schedule of earnings per share	December 31, 2019 December 31, 2018 Income from operations available to common stockholders (numerator)$ $2,833,841 4,373,345 Income available to common stockholders (numerator) 2,833,841 4,373,345 Weighted average number of common shares outstanding during the period used in earnings per share (denominator) 29,398,960 29,740,207

SEGMENT REPORTING (Tables)

SEGMENT REPORTING (Tables)	12 Months Ended
	Dec. 31, 2019
Segment Reporting [Abstract]
Summary of Segment Reporting	2019 2018 (in thousands) Libsyn Pair Total Libsyn Pair Total Revenue $ 14,486 $ 9,716 $ 24,202 $ 12,630 $ 9,380 $ 22,010 Cost of revenue 2,368 1,123 3,491 2,516 816 3,332 Total assets $ 26,934 $ 17,668 $ 44,602 $ 22,329 $ 17,732 $ 40,061 Depreciation and amortization $ 82 $ 2,828 $ 2,910 $ 46 $ 2,968 $ 3,014

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Accounting Policies [Abstract]
Cash balances in excess of federally insured limits	$ 16,145,362	$ 10,641,198
Allowance for doubtful accounts	14,000	14,000
Adjustments to allowance for bad debt	0	0
Advertising costs	$ 83,209	122,424
Research and development costs		$ 1,842,020

PROPERY & EQUIPMENT (Details)

PROPERY & EQUIPMENT (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Property and equipment	$ 11,424,309	$ 11,063,768
Less: Accumulated depreciation	(9,887,379)	(8,834,474)
Property and equipment, net	1,536,930	2,229,294
Furniture, fixtures and equipment [Member]
Property and equipment	$ 8,262,929	$ 8,155,322
Furniture, fixtures and equipment [Member] | Minimum [Member]
Estimated useful life	3 years	3 years
Furniture, fixtures and equipment [Member] | Maximum [Member]
Estimated useful life	10 years	10 years
Leasehold improvements [Member]
Property and equipment	$ 2,646,399	$ 2,646,400
Leasehold improvements [Member] | Minimum [Member]
Estimated useful life	3 years	3 years
Leasehold improvements [Member] | Maximum [Member]
Estimated useful life	5 years	5 years
Software [Member]
Estimated useful life	3 years	3 years
Property and equipment	$ 514,981	$ 262,046

PROPERY & EQUIPMENT (Details Na

PROPERY & EQUIPMENT (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 1,052,905	$ 1,156,418

GOODWILL AND OTHER INTANGIBLE_2

GOODWILL AND OTHER INTANGIBLE ASSETS (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Goodwill	$ 16,388,171	$ 16,388,171	$ 16,352,069
Pair
Goodwill	4,903,920	4,903,920
Libsyn
Goodwill	$ 11,484,251	$ 11,484,251

GOODWILL AND OTHER INTANGIBLE_3

GOODWILL AND OTHER INTANGIBLE ASSETS (Details 1) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill at beginning of period	$ 16,388,171	$ 16,352,069
Acquisition of pair	0	36,102
Impairment	0	0
Goodwill at end of period	$ 16,388,171	$ 16,388,171

GOODWILL AND OTHER INTANGIBLE_4

GOODWILL AND OTHER INTANGIBLE ASSETS (Details 2)	12 Months Ended
	Dec. 31, 2019USD ($)
Preliminary fair value	$ 9,644,000
Accumulated amortization	3,714,628
Net carrying amount	5,929,371
Customer relationships
Preliminary fair value	$ 3,947,000
Weighted average useful life	7 years
Accumulated amortization	$ 1,127,714
Net carrying amount	2,819,286
Intellectual property
Preliminary fair value	$ 3,709,000
Weighted average useful life	7 years
Accumulated amortization	$ 1,059,714
Net carrying amount	2,649,285
Trade name
Preliminary fair value	$ 576,000
Weighted average useful life	10 years
Accumulated amortization	$ 115,200
Net carrying amount	460,800
Non-compete
Preliminary fair value	$ 1,412,000
Weighted average useful life	2 years
Accumulated amortization	$ 1,412,000
Net carrying amount	$ 0

GOODWILL AND OTHER INTANGIBLE_5

GOODWILL AND OTHER INTANGIBLE ASSETS (Details 3)	Dec. 31, 2019USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2020	$ 1,151,314
2021	1,151,314
2022	1,151,314
2023	1,151,314
2024	1,151,315
Thereafter	172,800
Total	$ 5,929,371

LOANS (Details)

LOANS (Details)	Dec. 31, 2019USD ($)
Loans Payable [Abstract]
2020	$ 2,666,667
2021	1,600,000
2022	533,333
Total	$ 4,800,000

CAPITAL STOCK (Details)

CAPITAL STOCK (Details)	12 Months Ended
	Dec. 31, 2019$ / sharesshares
Stockholders' Equity Note [Abstract]
Stock awards outstanding, beginning | shares	5,175,000
Stock awards, issued | shares	0
Stock awards, no-longer subject to forfeiture | shares	937,500
Stock awards, cancelled/forfeited | shares	450,000
Stock awards outstanding, ending | shares	3,787,500
Weighted average grant date fair value outstanding, beginning | $ / shares	$ 1
Weighted average grant date fair value, issued | $ / shares	0
Weighted average grant date fair value, no-longer subject to forfeiture | $ / shares	0.66
Weighted average grant date fair value, cancelled/forfeited | $ / shares	0
Weighted average grant date fair value outstanding, ending | $ / shares	$ 1.66
Average remaining life, issued	8 months 12 days
Average remaining life outstanding, ending	8 months 12 days

CAPITAL STOCK (Details Narrativ

CAPITAL STOCK (Details Narrative) - $ / shares	Dec. 31, 2019	Dec. 31, 2018
Stockholders' Equity Note [Abstract]
Common stock authorized	200,000,000	200,000,000
Common stock par value	$ .001	$ 0.001
Common stock issued	29,721,974
Common stock outstanding	29,721,974	29,721,974

DEFERRED REVENUE (Details)

DEFERRED REVENUE (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Current revenue	$ 2,511,682	$ 2,276,079
Noncurrent revenue	601,234	371,938
Deferred revenue	3,112,916	2,648,017
Hosting Services
Current revenue	1,664,811	1,601,335
Noncurrent revenue	29,309	39,071
Deferred revenue	1,694,120	1,640,406
Domains
Current revenue	688,717	535,273
Noncurrent revenue	571,925	332,867
Deferred revenue	1,260,641	868,140
Media Subscription
Current revenue	158,154	139,471
Deferred revenue	$ 158,154	$ 139,471

DEFERRED REVENUE (Details 1) (U

DEFERRED REVENUE (Details 1) (USD $) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
2020	$ 2,511,682
2021	259,379
2022	164,723
2023	116,480
2024	49,782
Thereafter	10,891
Total	3,112,916	$ 2,648,017
Domains
2020	688,717
2021	232,133
2022	162,659
2023	116,480
2024	49,782
Thereafter	10,870
Total	1,260,641	868,140
Hosting Services
2020	1,664,811
2021	27,246
2022	2,064
2023	0
2024	0
Thereafter	0
Total	1,694,120	1,640,406
Media Subscription
2020	158,154
2021	0
2022	0
2023	0
2024	0
Thereafter	0
Total	$ 158,154	$ 139,471

DEFERRED REVENUE (Details 2)

DEFERRED REVENUE (Details 2) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Revenue	$ 24,201,629	$ 22,010,132
Hosting Services
Revenue	8,813,547	8,896,966
Podcast Hosting
Revenue	13,511,188	10,915,771
Advertising
Revenue	594,289	1,323,776
Domains
Revenue	1,018,419	547,770
Other
Revenue	$ 264,186	$ 325,849

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Current tax expense:
Federal	$ 1,162,480	$ 868,529
State	25,555	0
Current tax expense	1,183,712	868,529
Deferred tax (benefit) expense:
Depreciation and amortization	(611,146)	(164,862)
Tax Depreciation and Amortization	30,467	0
Bonus Accrual	(63,000)	0
Intangible Assets - Tax Amortization	229,071	0
Non-cash compensation	70,753	(1,261,155)
Deferred Revenue	(50,047)	(28,060)
Total deferred tax benefit	(393,902)	(1,454,077)
Total income tax (benefit) expense	$ (789,810)	$ 585,548

INCOME TAXES (Details 1)

INCOME TAXES (Details 1) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Computed tax at the expected statutory rate	$ 1,162,480	$ 868,529
State and local income taxes, net of federal	21,232	0
Change in valuation allowance	(393,902)	(1,454,077)
Total income tax (benefit) expense	$ 789,810	$ (585,548)

INCOME TAXES (Details 2)

INCOME TAXES (Details 2) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Current deferred tax assets (liabilities):
Bonus Accrual	$ 63,000	$ 0
Total current deferred tax assets	63,000	0
Long-term deferred tax assets (liabilities):
Intangible assets - Tax amortization	(229,071)	0
Depreciation and amortization	745,541	164,862
Non-cash compensation	1,190,402	1,261,155
Deferred Revenue	78,107	28,060
Total long-term deferred tax assets	1,784,979	1,454,077
Net term deferred tax assets	$ 1,847,979	$ 1,454,077

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Total deferred tax assets	$ 1,784,979	$ 1,454,077
Deferred tax assets attributable to goodwill	0	0
Valuation allowance	0	1,454,077
Change in the valuation allowance	$ 0	$ 909,738

LEASES (Details)

LEASES (Details)	Dec. 31, 2019USD ($)
Leases [Abstract]
2020	$ 433,426
2021	320,936
2022	29,816
Total payments	784,178
Less amount of lease payment representing interest	(32,448)
Total operating lease liability	$ 751,730

LEASES (Details 1)

LEASES (Details 1)	Dec. 31, 2019USD ($)
Leases [Abstract]
2020	$ 544,284
2021	493,164
2022	365,582
2023	19,812
Total Minimum Lease Payment	$ 1,422,822

LEASES (Details Narrative)

LEASES (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Leases [Abstract]
Lease expense charged to operations	$ 558,849	$ 611,538

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Earnings Per Share [Abstract]
Income from operations available to common stockholders (numerator)	$ 2,833,841	$ 4,373,345
Income available to common stockholders (numerator)	$ 2,833,841	$ 4,373,345
Weighted average number of common shares outstanding during the period used in earnings per share (denominator)	29,398,960	29,740,207

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details Narrative)	12 Months Ended
	Dec. 31, 2019USD ($)
Commitments and Contingencies Disclosure [Abstract]
Profit sharing contribution	$ 111,431

SEGMENT REPORTING (Details) (US

SEGMENT REPORTING (Details) (USD $) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Revenue	$ 24,202	$ 22,010
Cost of revenue	3,491	3,332
Total assets	45,304	40,061
Depreciation and amortization	2,910	3,014
Libsyn
Revenue	14,486	12,630
Cost of revenue	2,368	2,516
Total assets	27,637	22,329
Depreciation and amortization	82	46
Pair
Revenue	9,716	9,380
Cost of revenue	1,123	816
Total assets	17,667	17,732
Depreciation and amortization	$ 2,828	$ 2,968