Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 05, 2018 | Jun. 30, 2017 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | CREDITRISKMONITOR COM INC | ||
Entity Central Index Key | 315,958 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 9,207,777 | ||
Entity Common Stock, Shares Outstanding | 10,722,401 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 |
BALANCE SHEETS
BALANCE SHEETS - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 8,735,148 | $ 9,222,343 |
Accounts receivable, net of allowance of $30,000 | 2,139,707 | 2,090,676 |
Other current assets | 530,699 | 487,257 |
Total current assets | 11,405,554 | 11,800,276 |
Property and equipment, net | 437,216 | 430,324 |
Goodwill | 1,954,460 | 1,954,460 |
Other assets | 23,463 | 23,763 |
Total assets | 13,820,693 | 14,208,823 |
Current liabilities: | ||
Deferred revenue | 8,304,877 | 8,088,958 |
Accounts payable | 58,901 | 96,725 |
Accrued expenses | 1,344,526 | 1,282,126 |
Total current liabilities | 9,708,304 | 9,467,809 |
Deferred taxes on income, net | 514,333 | 762,403 |
Other liabilities | 15,748 | 12,574 |
Total liabilities | 10,238,385 | 10,242,786 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, $.01 par value; authorized 5,000,000 shares; none issued | 0 | 0 |
Common stock, $.01 par value; authorized 32,500,000 shares; issued and outstanding 10,722,401 shares | 107,224 | 107,224 |
Additional paid-in capital | 29,559,784 | 29,419,463 |
Accumulated deficit | (26,084,700) | (25,560,650) |
Total stockholders' equity | 3,582,308 | 3,966,037 |
Total liabilities and stockholders' equity | $ 13,820,693 | $ 14,208,823 |
BALANCE SHEETS (Parenthetical)
BALANCE SHEETS (Parenthetical) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Accounts receivable, allowance | $ 30,000 | $ 30,000 |
Stockholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 32,500,000 | 32,500,000 |
Common stock, issued (in shares) | 10,722,401 | 10,722,401 |
Common stock, outstanding (in shares) | 10,722,401 | 10,722,401 |
STATEMENTS OF OPERATIONS
STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
STATEMENTS OF OPERATIONS [Abstract] | ||
Operating revenues | $ 13,385,068 | $ 12,814,390 |
Operating expenses: | ||
Data and product costs | 5,426,779 | 4,944,053 |
Selling, general and administrative expenses | 8,044,256 | 7,495,742 |
Depreciation and amortization | 191,960 | 200,136 |
Total operating expenses | 13,662,995 | 12,639,931 |
Income (loss) from operations | (277,927) | 174,459 |
Other income, net | 47,216 | 27,183 |
Income (loss) before income taxes | (230,711) | 201,642 |
Benefit (provision) for income taxes | 242,781 | (149,199) |
Net income | $ 12,070 | $ 52,443 |
Net income per share: | ||
Basic (in dollars per share) | $ 0 | $ 0 |
Diluted (in dollars per share) | $ 0 | $ 0 |
STATEMENTS OF STOCKHOLDERS' EQU
STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Total |
Balance at Dec. 31, 2015 | $ 107,223 | $ 29,279,791 | $ (25,076,973) | $ 4,310,041 |
Balance (in shares) at Dec. 31, 2015 | 10,722,321 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | $ 0 | 0 | 52,443 | 52,443 |
Cash dividend paid | 0 | 0 | (536,120) | (536,120) |
Exercise of stock options | $ 1 | (1) | 0 | 0 |
Exercise of stock options (in shares) | 80 | |||
Stock-based compensation | $ 0 | 139,673 | 0 | 139,673 |
Balance at Dec. 31, 2016 | $ 107,224 | 29,419,463 | (25,560,650) | $ 3,966,037 |
Balance (in shares) at Dec. 31, 2016 | 10,722,401 | 10,722,401 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | $ 0 | 0 | 12,070 | $ 12,070 |
Cash dividend paid | 0 | 0 | (536,120) | (536,120) |
Stock-based compensation | 0 | 140,321 | 0 | 140,321 |
Balance at Dec. 31, 2017 | $ 107,224 | $ 29,559,784 | $ (26,084,700) | $ 3,582,308 |
Balance (in shares) at Dec. 31, 2017 | 10,722,401 | 10,722,401 |
STATEMENTS OF CASH FLOWS
STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 12,070 | $ 52,443 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Deferred income taxes | (248,070) | 2,949 |
Depreciation and amortization | 191,960 | 200,136 |
Realized loss on marketable securities | 0 | 5,063 |
Stock-based compensation | 140,321 | 139,673 |
Deferred rent | 3,174 | 8,260 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (49,031) | (163,248) |
Other current assets | (43,442) | 68,614 |
Other assets | 300 | 10,236 |
Deferred revenue | 215,919 | 652,194 |
Accounts payable | (37,824) | 18,458 |
Accrued expenses | 62,400 | 40,809 |
Net cash provided by operating activities | 247,777 | 1,035,587 |
Cash flows from investing activities: | ||
Sale of marketable securities | 0 | 240,411 |
Purchase of property and equipment | (198,852) | (235,434) |
Net cash provided by (used in) investing activities | (198,852) | 4,977 |
Cash flows from financing activities: | ||
Dividend paid to stockholders | (536,120) | (536,120) |
Net cash used in financing activities | (536,120) | (536,120) |
Net increase (decrease) in cash and cash equivalents | (487,195) | 504,444 |
Cash and cash equivalents at beginning of year | 9,222,343 | 8,717,899 |
Cash and cash equivalents at end of year | 8,735,148 | 9,222,343 |
Cash paid during the year for: | ||
Income taxes | $ 136,647 | $ 74,356 |
ORGANIZATION AND DESCRIPTION OF
ORGANIZATION AND DESCRIPTION OF BUSINESS | 12 Months Ended |
Dec. 31, 2017 | |
ORGANIZATION AND DESCRIPTION OF BUSINESS [Abstract] | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS CreditRiskMonitor.com, Inc. (also referred to as the “Company” or “CreditRiskMonitor”) provides a totally interactive business-to-business Internet-based service designed specifically for credit and supply chain managers. This service is sold predominantly to corporations located in the United States. In addition, the Company is a re-distributor of international credit reports in the United States. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2017 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Cash and Cash Equivalents Cash and cash equivalents are comprised of cash in banks and highly liquid instruments with original maturities of three months or less, primarily consisting of investments in institutional money market funds. Property and Equipment Property and equipment are recorded at cost. Depreciation is provided on the straight-line method over the estimated useful life of the asset. Estimated useful lives are generally as follows: · Fixtures, equipment and software -- 3 to 6 years · Leasehold improvements -- lower of life or term of lease Goodwill Goodwill and other indefinite-lived intangible assets are subject to annual impairment testing using the specific guidance and criteria described in the accounting guidance. The Company performs its goodwill impairment testing at least annually in the fourth quarter of each year, unless circumstances dictate the need for more frequent assessment. Goodwill impairment is determined using a two-step process. The first step of the impairment test is used to identify potential impairment by comparing the fair value of a reporting unit to the book value, including goodwill. If the fair value of a reporting unit exceeds its book value, goodwill of the reporting unit is not considered impaired and the second step of the impairment test is not required. If the book value of a reporting unit exceeds its fair value, the second step of the impairment test is performed to measure the amount of impairment loss, if any. The second step of the impairment test compares the implied fair value of the reporting unit’s goodwill with the book value of that goodwill. If the book value of the reporting unit’s goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination. The Company completed its annual goodwill impairment tests for 2017 and 2016 during the fourth quarter of each year and determined there was no impairment of existing goodwill. Long-Lived Assets The Company reviews its long-lived amortizable assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable in accordance with accounting guidance. Recoverability of assets held and used is measured by a comparison of the carrying amount of an asset to undiscounted pre-tax future net cash flows expected to be generated by that asset. An impairment loss is recognized for the amount by which the carrying amount of the assets exceeds the fair value of the assets. As of December 31, 2017 and 2016, management believes no impairment of . Income Taxes The Company provides for deferred income taxes resulting from temporary differences between financial statement and income tax reporting. Temporary differences are differences between the amounts of assets and liabilities reported for financial statement purposes and their tax bases. Deferred tax liabilities are recognized for temporary differences that will be taxable in future years’ tax returns. Deferred tax assets are recognized for temporary differences that will be deductible in future years’ tax returns and for operating loss and tax credit carryforwards. Deferred tax assets are reduced by a valuation allowance if it is deemed more likely than not that some or all of the deferred tax assets will not be realized. Revenue Recognition CreditRiskMonitor’s North American and worldwide service is sold on a subscription basis pursuant to customer contracts that span varying periods of time, but are generally for a period of one year. The Company initially records amounts billed as accounts receivable and defers the related revenue until persuasive evidence of an arrangement exists, fees are fixed and determinable, and collection is reasonably assured. Revenues are recognized ratably over the related subscription period. Revenue from the Company’s third-party international credit report service is recognized as information is delivered and products and services are used by customers. Net Income Per Share Net income per share is calculated based on the weighted average number of shares of common stock outstanding during the reporting period. Diluted is calculated giving effect to all potentially dilutive common shares, assuming such shares were outstanding during the reporting period. The difference between basic and diluted is solely attributable to stock options. The Company uses the treasury stock method to calculate the impact of outstanding stock options Fair Value of Financial Instruments The Company calculates the fair value of financial instruments and includes this additional information in the notes to the financial statements when the fair value is different than the book value of those financial instruments. The Company believes the recorded value of cash and cash equivalents, accounts receivable, and accounts payable and other liabilities approximates fair value because of the short maturity of these financial instruments. Comprehensive Income The Company adheres to accounting guidance for the reporting and displaying of comprehensive income or loss and its components (revenues, expenses, gains and losses). The accounting guidance requires that all items that are required to be recognized under accounting standards as components of comprehensive income be classified by their nature. Furthermore, the Company is required to display the accumulated balances of other comprehensive income separately from retained earnings and additional paid-in capital in the equity section of the balance sheet. For the years ended December 31, 2017 and 2016, there were no items that gave rise to other comprehensive income or loss and net income equaled comprehensive income. Segment Information The Company currently believes it operates in one segment. Stock-Based Compensation The Company recognizes the grant-date fair value of all stock-based awards on a straight-line basis over their respective requisite service periods (generally equal to an award’s vesting period). The Company records deferred tax assets for awards that will result in deductions on its tax returns, based upon the amount of compensation cost recognized and the statutory tax rate in the jurisdiction in which it will receive a deduction. See Note 5 for more information regarding the Company’s stock compensation plans. Fair Value Measurements The Company records its financial instruments at fair value in accordance with accounting guidance. The determination of fair value assumes that the transaction to sell an asset or transfer a liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The fair value hierarchy is broken down into three levels based on the source of inputs as follows: (a) Level 1 – valuations based on unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; (b) Level 2 – valuations based on quoted prices in markets that are not active, or financial instruments for which all significant inputs are observable; either directly or indirectly; and (c) Level 3 – valuations based on prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable; thus, reflecting assumptions about the market participants. Recently Issued Accounting Standards In May 2014, new accounting guidance was issued that replaces most existing revenue recognition guidance under U.S. GAAP. The core principal of the new standard is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Using this principle, a comprehensive framework was established for determining how much revenue to recognize and when it should be recognized. To be consistent with this core principle, an entity is required to apply the following five-step approach: (1) identify the contract(s) with a customer; (2) identify each performance obligation in the contract; (3) determine the transaction price; (4) allocate the transaction price to each performance obligation; and (5) recognize revenue when or as each performance obligation is satisfied. The new guidance is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Entities have the option of adopting this standard using either a full retrospective approach or a modified retrospective approach (i.e., through a cumulative effect adjustment directly to retained earnings at the time of adoption). he Company’s primary source of revenue is subscription income which is recognized ratably over the subscription term, t In February of 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” The Financial Accounting Standards Board and the SEC have issued certain other accounting pronouncements as of December 31, 2017 that will become effective in subsequent periods; however, management does not believe that any of these pronouncements would have significantly affected the Company’s financial accounting measurements or disclosures had they been in effect during the interim periods for which financial statements are included in this annual report, nor does management believe those pronouncements would have a significant effect on the Company’s future financial position or results of operations. Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk principally consist of cash, cash equivalents and accounts receivable. The Company maintains its cash and cash equivalents in bank deposit and other accounts, the balances of which, at times, may exceed federally insured limits. Exposure to credit risk is reduced by placing such deposits in high credit quality financial institutions. The Company closely monitors the extension of credit to its customers. The Company’s accounts receivable balance is net of an allowance for doubtful accounts. The Company does not require collateral or other security to support credit sales, but provides an allowance for doubtful accounts based on historical experience and specifically identified risks. Accounts receivable are charged off against the allowance for doubtful accounts when management determines that recovery is unlikely and the Company ceases collection efforts. The Company does not believe that significant credit risk existed at December 31, 2017 and 2016. |
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS | 12 Months Ended |
Dec. 31, 2017 | |
CASH AND CASH EQUIVALENTS [Abstract] | |
CASH AND CASH EQUIVALENTS | NOTE 3 - CASH AND CASH EQUIVALENTS Cash and cash equivalents consisted of the following as of December 31: 2017 2016 Cash $ 508,942 $ 757,820 Money market funds 8,226,206 8,464,523 $ 8,735,148 $ 9,222,343 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2017 | |
INCOME TAXES [Abstract] | |
INCOME TAXES | NOTE 4 - INCOME TAXES In accordance with the Tax Cuts and Jobs Act that was enacted on December 22, 2017 (“U.S. Tax Reform Act”), we have recorded a credit for income taxes of $220,954. The impact of the U.S. Tax Reform Act is primarily from revaluing our U.S. deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future. For U.S. federal purposes the corporate statutory income tax rate was reduced from 35% to 21%, effective for our 2018 tax year. The provisional impact of the U.S. Tax Reform Act is our current best estimate based on the preliminary review of the new law and is subject to revision based on our existing accounting for income taxes policy as further information is gathered and interpretation and analysis of the tax legislation evolves. The Securities and Exchange Commission has issued rules allowing for a measurement period of up to one year after the enactment date of the U.S Tax Reform Act to finalize the recording of the related tax impacts. Any future changes to our provisional estimated impact of the U.S Tax Reform Act will be included as an adjustment to the provision for income taxes. The Company’s income tax expense (benefit) consisted of the following: 2017 2016 Current: Federal $ (2,746 ) $ 127,768 State 8,035 18,482 Deferred: Federal (264,707 ) 20,444 State 16,637 (17,495 ) $ (242,781 ) $ 149,199 The actual tax expense (benefit) for 2017 and 2016 differs from the "expected" tax expense for those years (computed by applying the applicable United States federal corporate tax rate to income before income taxes) as follows: 2017 2016 Computed "expected" expense (benefit) $ (78,408 ) $ 68,558 Permanent differences 42,570 55,998 State and local income tax expense (7,749 ) 11,738 True-up of current taxes 1,025 9,295 True-up of deferred taxes 20,735 3,610 Change in federal statutory rate (220,954 ) -- Income tax expense (benefit) $ (242,781 ) $ 149,199 The tax effects of temporary differences that give rise to significant portions of the net deferred tax assets/(liabilities) at December 31, 2017 and 2016 are as follows: 2017 2016 Deferred tax assets: Stock options $ 12,406 $ 39,837 Accrued vacation 65,317 76,669 Bad debt allowance 8,309 11,878 Deferred revenue 4,674 6,682 Deferred rent 4,362 4,978 Other 19,945 24,402 Total deferred tax assets 115,013 164,446 Deferred tax liabilities: Goodwill (541,310 ) (773,848 ) Fixed assets (88,036 ) (153,001 ) Total deferred tax liabilities (629,346 ) (926,849 ) Net deferred tax liabilities $ (514,333 ) $ (762,403 ) |
COMMON STOCK, STOCK OPTIONS, AN
COMMON STOCK, STOCK OPTIONS, AND STOCK APPRECIATION RIGHTS | 12 Months Ended |
Dec. 31, 2017 | |
COMMON STOCK, STOCK OPTIONS, AND STOCK APPRECIATION RIGHTS [Abstract] | |
COMMON STOCK, STOCK OPTIONS, AND STOCK APPRECIATION RIGHTS | NOTE 5 - COMMON STOCK, STOCK OPTIONS, AND STOCK APPRECIATION RIGHTS Common Stock At December 31, 2017, 421,350 shares of the Company’s authorized common stock were reserved for issuance upon exercise of outstanding options under its stock option plan. Preferred Stock The Company’s Articles of Incorporation provide that the Board of Directors has the authority, without further action by the holders of the outstanding common stock, to issue up to five million shares of preferred stock from time to time in one or more series. The Board of Directors shall fix the consideration to be paid, but not less than par value thereof, and to fix the terms of any such series, including dividend rights, dividend rates, conversion or exchange rights, voting rights, rights and terms of redemption (including sinking fund provisions), the redemption price and the liquidation preference of such series. As of December 31, 2017, the Company does not have any preferred stock outstanding. Stock Options and Stock Appreciation Rights As of December 31, 2017, the Company has one stock option plan: the 2009 Long-Term Incentive Plan (“2009 Plan”). During 2017, the Company’s prior plan (the 1998 Long-Term Incentive Plan) expired. The 2009 Plan authorizes the grant of incentive stock options, non-qualified stock options, SARs, restricted stock, bonus stock, and performance shares to employees, consultants, and non-employee directors of the Company. The exercise price of each option shall not be less than the fair market value of the common stock at the date of grant. The total number of the Company’s shares that may be awarded under this plan is 1,300,000 shares of common stock. At December 31, 2017, there were options outstanding for 421,350 shares of common stock under the 2009 Plan. Options expire on the date determined, but not more than ten years from the date of grant. All of the options granted under the 2009 Plan may be exercised after four years in installments upon the attainment of specified length of service. In the event of a change in control (as defined), the options will vest in full at the time of such change in control. There have been no transactions with respect to the Company’s stock appreciation rights during the years ended December 31, 2017 and 2016, nor are there any stock appreciation rights outstanding at December 31, 2017 and 2016. Transactions with respect to the Company’s stock option plans for the years ended December 31, 2017 and 2016 are as follows: Number of Shares Weighted Average Exercise Price Outstanding at January 1, 2016 337,350 $ 3.0092 Exercised (260 ) 2.3154 Forfeited (55,500 ) 2.0946 Granted 114,500 2.9873 Outstanding at December 31, 2016 396,090 $ 3.1315 Forfeited (49,540 ) 2.1762 Granted 74,800 2.0588 Outstanding at December 31, 2017 421,350 $ 3.0534 As of December 31, 2017, there were 878,390 shares of common stock reserved for the granting of additional options. The following table summarizes the stock-based compensation expense for stock options that was recorded in the Company’s results of operations in accordance with ASC 718 for the years ended December 31: 2017 2016 Data and product costs $ 35,661 $ 32,588 Selling, general and administrative costs 104,660 107,085 $ 140,321 $ 139,673 The fair value of each option is estimated on the date of grant using the Black-Scholes option-pricing model that uses the weighted average assumptions noted in the following table. Expected volatilities are based on historical volatility of our stock through the date of grant. The Company uses the simplified method under Staff Accounting Bulletin No. 110, “Use of a Simplified Method in Developing an Estimate of Expected Term of ‘Plain Vanilla’ Share Options”, to estimate the options’ expected term. The risk-free interest rate used is based on the U.S. Treasury constant maturities at the time of grant having a term that approximates the expected life of the option. The fair value of options granted during the years ended December 31, 2017 and 2016 was $1.21 and $2.97, respectively. The fair value of options at date of grant was estimated using the Black-Scholes model with the following assumptions: 2017 2016 Risk-free interest rate 2.37 % 2.07 % Expected dividend yield 2.61 % 1.68 % Expected volatility factor 0.73 0.78 Expected life of the option (years) 9.00 8.82 The Company issues new shares upon the exercise of options. The following table summarizes information about the Company’s stock options outstanding at December 31, 2017: Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Price Number Exercisable Weighted Average Exercise Price $ 1.00 - $ 2.00 54,800 9.79 $ 1.6788 - - $ 2.01 - $ 3.00 163,000 6.76 $ 2.6831 26,000 $ 2.3154 $ 3.01 - $ 6.00 203,550 3.24 $ 3.7200 150,930 $ 3.6278 421,350 5.45 $ 3.0534 176,930 $ 3.4350 The aggregate intrinsic value represents the total pre-tax intrinsic value, based on options with an exercise price less than the Company's closing stock price of $1.75 and $3.10 as of December 31, 2017 and 2016, respectively, which would have been received by the option holders had those option holders exercised their options as of that date. The aggregate intrinsic value of options outstanding as of December 31, 2017 and 2016 was $3,900 and $120,966, respectively. As of December 31, 2017, the total compensation cost related to unvested stock-based awards granted to employees under the Company’s stock option plan but not yet recognized was $346,336. This cost will be amortized on a straight-line basis over a weighted average term of 3.45 years and will be adjusted for subsequent changes in estimated forfeitures. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2017 | |
PROPERTY AND EQUIPMENT [Abstract] | |
PROPERTY AND EQUIPMENT | NOTE 6 - PROPERTY AND EQUIPMENT Property and equipment consisted of the following: 2017 2016 Computer equipment and software $ 1,485,044 $ 1,389,854 Furniture and fixtures 369,595 332,900 Leasehold improvements 187,062 184,136 2,041,701 1,906,890 Less accumulated depreciation and amortization (1,604,485 ) (1,476,566 ) $ 437,216 $ 430,324 |
LEASE COMMITMENTS
LEASE COMMITMENTS | 12 Months Ended |
Dec. 31, 2017 | |
LEASE COMMITMENTS [Abstract] | |
LEASE COMMITMENTS | NOTE 7 - LEASE COMMITMENTS The Company’s operations are conducted from a leased facility, which is under an operating lease that expires on July 31, 2020. Rental expenses under operating leases were $290,634 and $291,016 for the years ended December 31, 2017 and 2016, respectively. Future minimum lease payments for noncancelable operating leases at December 31, 2017 are as follows: Operating 2018 $ 176,944 2019 182,340 2020 108,578 Total minimum lease payments $ 467,862 |
NET INCOME PER SHARE
NET INCOME PER SHARE | 12 Months Ended |
Dec. 31, 2017 | |
NET INCOME PER SHARE [Abstract] | |
NET INCOME PER SHARE | NOTE 8 - NET INCOME PER SHARE The following table sets forth the computation of basic and diluted net income per share: 2017 2016 Net income $ 12,070 $ 52,443 Weighted average common shares outstanding – basic 10,722,401 10,722,323 Potential shares exercisable under stock option plans 143,280 256,947 LESS: Shares which could be repurchased under treasury stock method (139,560 ) (198,759 ) Weighted average common shares outstanding – diluted 10,726,121 10,780,511 Net income per share: Basic $ 0.00 $ 0.00 Diluted $ 0.00 $ 0.00 For fiscal 2017 and 2016, the computation of diluted net income per share excludes the effects of the assumed exercise of 264,675 and 130,338 options, respectively, since their inclusion would be anti-dilutive as their exercise prices were above market value. |
SUMMARY OF SIGNIFICANT ACCOUN15
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents are comprised of cash in banks and highly liquid instruments with original maturities of three months or less, primarily consisting of investments in institutional money market funds. |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost. Depreciation is provided on the straight-line method over the estimated useful life of the asset. Estimated useful lives are generally as follows: · Fixtures, equipment and software -- 3 to 6 years · Leasehold improvements -- lower of life or term of lease |
Goodwill | Goodwill Goodwill and other indefinite-lived intangible assets are subject to annual impairment testing using the specific guidance and criteria described in the accounting guidance. The Company performs its goodwill impairment testing at least annually in the fourth quarter of each year, unless circumstances dictate the need for more frequent assessment. Goodwill impairment is determined using a two-step process. The first step of the impairment test is used to identify potential impairment by comparing the fair value of a reporting unit to the book value, including goodwill. If the fair value of a reporting unit exceeds its book value, goodwill of the reporting unit is not considered impaired and the second step of the impairment test is not required. If the book value of a reporting unit exceeds its fair value, the second step of the impairment test is performed to measure the amount of impairment loss, if any. The second step of the impairment test compares the implied fair value of the reporting unit’s goodwill with the book value of that goodwill. If the book value of the reporting unit’s goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination. The Company completed its annual goodwill impairment tests for 2017 and 2016 during the fourth quarter of each year and determined there was no impairment of existing goodwill. |
Long-Lived Assets | Long-Lived Assets The Company reviews its long-lived amortizable assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable in accordance with accounting guidance. Recoverability of assets held and used is measured by a comparison of the carrying amount of an asset to undiscounted pre-tax future net cash flows expected to be generated by that asset. An impairment loss is recognized for the amount by which the carrying amount of the assets exceeds the fair value of the assets. As of December 31, 2017 and 2016, management believes no impairment of . |
Income Taxes | Income Taxes The Company provides for deferred income taxes resulting from temporary differences between financial statement and income tax reporting. Temporary differences are differences between the amounts of assets and liabilities reported for financial statement purposes and their tax bases. Deferred tax liabilities are recognized for temporary differences that will be taxable in future years’ tax returns. Deferred tax assets are recognized for temporary differences that will be deductible in future years’ tax returns and for operating loss and tax credit carryforwards. Deferred tax assets are reduced by a valuation allowance if it is deemed more likely than not that some or all of the deferred tax assets will not be realized. |
Revenue Recognition | Revenue Recognition CreditRiskMonitor’s North American and worldwide service is sold on a subscription basis pursuant to customer contracts that span varying periods of time, but are generally for a period of one year. The Company initially records amounts billed as accounts receivable and defers the related revenue until persuasive evidence of an arrangement exists, fees are fixed and determinable, and collection is reasonably assured. Revenues are recognized ratably over the related subscription period. Revenue from the Company’s third-party international credit report service is recognized as information is delivered and products and services are used by customers. |
Net Income Per Share | Net Income Per Share Net income per share is calculated based on the weighted average number of shares of common stock outstanding during the reporting period. Diluted is calculated giving effect to all potentially dilutive common shares, assuming such shares were outstanding during the reporting period. The difference between basic and diluted is solely attributable to stock options. The Company uses the treasury stock method to calculate the impact of outstanding stock options |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company calculates the fair value of financial instruments and includes this additional information in the notes to the financial statements when the fair value is different than the book value of those financial instruments. The Company believes the recorded value of cash and cash equivalents, accounts receivable, and accounts payable and other liabilities approximates fair value because of the short maturity of these financial instruments. |
Comprehensive Income | Comprehensive Income The Company adheres to accounting guidance for the reporting and displaying of comprehensive income or loss and its components (revenues, expenses, gains and losses). The accounting guidance requires that all items that are required to be recognized under accounting standards as components of comprehensive income be classified by their nature. Furthermore, the Company is required to display the accumulated balances of other comprehensive income separately from retained earnings and additional paid-in capital in the equity section of the balance sheet. For the years ended December 31, 2017 and 2016, there were no items that gave rise to other comprehensive income or loss and net income equaled comprehensive income. |
Segment Information | Segment Information The Company currently believes it operates in one segment. |
Stock-Based Compensation | Stock-Based Compensation The Company recognizes the grant-date fair value of all stock-based awards on a straight-line basis over their respective requisite service periods (generally equal to an award’s vesting period). The Company records deferred tax assets for awards that will result in deductions on its tax returns, based upon the amount of compensation cost recognized and the statutory tax rate in the jurisdiction in which it will receive a deduction. See Note 5 for more information regarding the Company’s stock compensation plans. |
Fair Value Measurements | Fair Value Measurements The Company records its financial instruments at fair value in accordance with accounting guidance. The determination of fair value assumes that the transaction to sell an asset or transfer a liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The fair value hierarchy is broken down into three levels based on the source of inputs as follows: (a) Level 1 – valuations based on unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; (b) Level 2 – valuations based on quoted prices in markets that are not active, or financial instruments for which all significant inputs are observable; either directly or indirectly; and (c) Level 3 – valuations based on prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable; thus, reflecting assumptions about the market participants. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In May 2014, new accounting guidance was issued that replaces most existing revenue recognition guidance under U.S. GAAP. The core principal of the new standard is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Using this principle, a comprehensive framework was established for determining how much revenue to recognize and when it should be recognized. To be consistent with this core principle, an entity is required to apply the following five-step approach: (1) identify the contract(s) with a customer; (2) identify each performance obligation in the contract; (3) determine the transaction price; (4) allocate the transaction price to each performance obligation; and (5) recognize revenue when or as each performance obligation is satisfied. The new guidance is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Entities have the option of adopting this standard using either a full retrospective approach or a modified retrospective approach (i.e., through a cumulative effect adjustment directly to retained earnings at the time of adoption). he Company’s primary source of revenue is subscription income which is recognized ratably over the subscription term, t In February of 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” The Financial Accounting Standards Board and the SEC have issued certain other accounting pronouncements as of December 31, 2017 that will become effective in subsequent periods; however, management does not believe that any of these pronouncements would have significantly affected the Company’s financial accounting measurements or disclosures had they been in effect during the interim periods for which financial statements are included in this annual report, nor does management believe those pronouncements would have a significant effect on the Company’s future financial position or results of operations. |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk principally consist of cash, cash equivalents and accounts receivable. The Company maintains its cash and cash equivalents in bank deposit and other accounts, the balances of which, at times, may exceed federally insured limits. Exposure to credit risk is reduced by placing such deposits in high credit quality financial institutions. The Company closely monitors the extension of credit to its customers. The Company’s accounts receivable balance is net of an allowance for doubtful accounts. The Company does not require collateral or other security to support credit sales, but provides an allowance for doubtful accounts based on historical experience and specifically identified risks. Accounts receivable are charged off against the allowance for doubtful accounts when management determines that recovery is unlikely and the Company ceases collection efforts. The Company does not believe that significant credit risk existed at December 31, 2017 and 2016. |
CASH AND CASH EQUIVALENTS (Tabl
CASH AND CASH EQUIVALENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
CASH AND CASH EQUIVALENTS [Abstract] | |
Cash and Cash Equivalents | Cash and cash equivalents consisted of the following as of December 31: 2017 2016 Cash $ 508,942 $ 757,820 Money market funds 8,226,206 8,464,523 $ 8,735,148 $ 9,222,343 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
INCOME TAXES [Abstract] | |
Income Tax Expense (Benefit) | The Company’s income tax expense (benefit) consisted of the following: 2017 2016 Current: Federal $ (2,746 ) $ 127,768 State 8,035 18,482 Deferred: Federal (264,707 ) 20,444 State 16,637 (17,495 ) $ (242,781 ) $ 149,199 |
Income Tax Reconciliation | The actual tax expense (benefit) for 2017 and 2016 differs from the "expected" tax expense for those years (computed by applying the applicable United States federal corporate tax rate to income before income taxes) as follows: 2017 2016 Computed "expected" expense (benefit) $ (78,408 ) $ 68,558 Permanent differences 42,570 55,998 State and local income tax expense (7,749 ) 11,738 True-up of current taxes 1,025 9,295 True-up of deferred taxes 20,735 3,610 Change in federal statutory rate (220,954 ) -- Income tax expense (benefit) $ (242,781 ) $ 149,199 |
Net Deferred Tax Assets/(Liabilities) | The tax effects of temporary differences that give rise to significant portions of the net deferred tax assets/(liabilities) at December 31, 2017 and 2016 are as follows: 2017 2016 Deferred tax assets: Stock options $ 12,406 $ 39,837 Accrued vacation 65,317 76,669 Bad debt allowance 8,309 11,878 Deferred revenue 4,674 6,682 Deferred rent 4,362 4,978 Other 19,945 24,402 Total deferred tax assets 115,013 164,446 Deferred tax liabilities: Goodwill (541,310 ) (773,848 ) Fixed assets (88,036 ) (153,001 ) Total deferred tax liabilities (629,346 ) (926,849 ) Net deferred tax liabilities $ (514,333 ) $ (762,403 ) |
COMMON STOCK, STOCK OPTIONS, 18
COMMON STOCK, STOCK OPTIONS, AND STOCK APPRECIATION RIGHTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
COMMON STOCK, STOCK OPTIONS, AND STOCK APPRECIATION RIGHTS [Abstract] | |
Stock Option Activity | Transactions with respect to the Company’s stock option plans for the years ended December 31, 2017 and 2016 are as follows: Number of Shares Weighted Average Exercise Price Outstanding at January 1, 2016 337,350 $ 3.0092 Exercised (260 ) 2.3154 Forfeited (55,500 ) 2.0946 Granted 114,500 2.9873 Outstanding at December 31, 2016 396,090 $ 3.1315 Forfeited (49,540 ) 2.1762 Granted 74,800 2.0588 Outstanding at December 31, 2017 421,350 $ 3.0534 |
Summary of Stock-based Compensation Expense | The following table summarizes the stock-based compensation expense for stock options that was recorded in the Company’s results of operations in accordance with ASC 718 for the years ended December 31: 2017 2016 Data and product costs $ 35,661 $ 32,588 Selling, general and administrative costs 104,660 107,085 $ 140,321 $ 139,673 |
Fair Value Assumptions used in the Valuation of Stock Options | The fair value of options granted during the years ended December 31, 2017 and 2016 was $1.21 and $2.97, respectively. The fair value of options at date of grant was estimated using the Black-Scholes model with the following assumptions: 2017 2016 Risk-free interest rate 2.37 % 2.07 % Expected dividend yield 2.61 % 1.68 % Expected volatility factor 0.73 0.78 Expected life of the option (years) 9.00 8.82 |
Stock Options Outstanding by Price Range | The following table summarizes information about the Company’s stock options outstanding at December 31, 2017: Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Price Number Exercisable Weighted Average Exercise Price $ 1.00 - $ 2.00 54,800 9.79 $ 1.6788 - - $ 2.01 - $ 3.00 163,000 6.76 $ 2.6831 26,000 $ 2.3154 $ 3.01 - $ 6.00 203,550 3.24 $ 3.7200 150,930 $ 3.6278 421,350 5.45 $ 3.0534 176,930 $ 3.4350 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
PROPERTY AND EQUIPMENT [Abstract] | |
Property and Equipment | Property and equipment consisted of the following: 2017 2016 Computer equipment and software $ 1,485,044 $ 1,389,854 Furniture and fixtures 369,595 332,900 Leasehold improvements 187,062 184,136 2,041,701 1,906,890 Less accumulated depreciation and amortization (1,604,485 ) (1,476,566 ) $ 437,216 $ 430,324 |
LEASE COMMITMENTS (Tables)
LEASE COMMITMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
LEASE COMMITMENTS [Abstract] | |
Future Minimum Lease Payments for Noncancelable Operating Leases | Future minimum lease payments for noncancelable operating leases at December 31, 2017 are as follows: Operating 2018 $ 176,944 2019 182,340 2020 108,578 Total minimum lease payments $ 467,862 |
NET INCOME PER SHARE (Tables)
NET INCOME PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
NET INCOME PER SHARE [Abstract] | |
Computation of Basic and Diluted Net Income per Share | The following table sets forth the computation of basic and diluted net income per share: 2017 2016 Net income $ 12,070 $ 52,443 Weighted average common shares outstanding – basic 10,722,401 10,722,323 Potential shares exercisable under stock option plans 143,280 256,947 LESS: Shares which could be repurchased under treasury stock method (139,560 ) (198,759 ) Weighted average common shares outstanding – diluted 10,726,121 10,780,511 Net income per share: Basic $ 0.00 $ 0.00 Diluted $ 0.00 $ 0.00 |
SUMMARY OF SIGNIFICANT ACCOUN22
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2017USD ($)Segment | Dec. 31, 2016USD ($) | |
Goodwill [Abstract] | ||||
Impairment of goodwill | $ 0 | $ 0 | ||
Long-Lived Assets [Abstract] | ||||
Impairment of long-lived assets | $ 0 | $ 0 | ||
Revenue Recognition [Abstract] | ||||
Term of customer contracts | 1 year | |||
Segment Information [Abstract] | ||||
Number of operating segments | Segment | 1 | |||
Fixtures, Equipment and Software [Member] | Minimum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful life of asset | 3 years | |||
Fixtures, Equipment and Software [Member] | Maximum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful life of asset | 6 years |
CASH AND CASH EQUIVALENTS (Deta
CASH AND CASH EQUIVALENTS (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
CASH AND CASH EQUIVALENTS [Abstract] | |||
Cash | $ 508,942 | $ 757,820 | |
Money market funds | 8,226,206 | 8,464,523 | |
Cash and cash equivalents | $ 8,735,148 | $ 9,222,343 | $ 8,717,899 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Line Items] | ||||
Income tax credit | $ (220,954) | |||
Statutory federal income tax rate | 35.00% | |||
Current [Abstract] | ||||
Federal | $ (2,746) | $ 127,768 | ||
State | 8,035 | 18,482 | ||
Deferred [Abstract] | ||||
Federal | (264,707) | 20,444 | ||
State | 16,637 | (17,495) | ||
Income tax expense (benefit) | (242,781) | 149,199 | ||
Income tax reconciliation [Abstract] | ||||
Computed "expected" expense (benefit) | (78,408) | 68,558 | ||
Permanent differences | 42,570 | 55,998 | ||
State and local income tax expense | (7,749) | 11,738 | ||
True-up of current taxes | 1,025 | 9,295 | ||
True-up of deferred taxes | 20,735 | 3,610 | ||
Change in federal statutory rate | (220,954) | 0 | ||
Income tax expense (benefit) | (242,781) | 149,199 | ||
Deferred tax assets [Abstract] | ||||
Stock options | 12,406 | 12,406 | 39,837 | |
Accrued vacation | 65,317 | 65,317 | 76,669 | |
Bad debt allowance | 8,309 | 8,309 | 11,878 | |
Deferred revenue | 4,674 | 4,674 | 6,682 | |
Deferred rent | 4,362 | 4,362 | 4,978 | |
Other | 19,945 | 19,945 | 24,402 | |
Total deferred tax assets | 115,013 | 115,013 | 164,446 | |
Deferred tax liabilities [Abstract] | ||||
Goodwill | (541,310) | (541,310) | (773,848) | |
Fixed assets | (88,036) | (88,036) | (153,001) | |
Total deferred tax liabilities | (629,346) | (629,346) | (926,849) | |
Net deferred tax liabilities | $ (514,333) | $ (514,333) | $ (762,403) | |
Plan [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Statutory federal income tax rate | 21.00% |
COMMON STOCK, STOCK OPTIONS, 25
COMMON STOCK, STOCK OPTIONS, AND STOCK APPRECIATION RIGHTS (Details) | 12 Months Ended | |||
Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2017Planshares | Dec. 31, 2016shares | |
COMMON STOCK, STOCK OPTIONS, AND STOCK APPRECIATION RIGHTS [Abstract] | ||||
Preferred stock, authorized (in shares) | 5,000,000 | 5,000,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized for issuance (in shares) | 421,350 | |||
Number of stock option plans | Plan | 1 | |||
Weighted Average Exercise Price [Roll Forward] | ||||
Granted (in dollars per share) | $ / shares | $ 1.21 | $ 2.97 | ||
Stock-based compensation expense for stock options [Abstract] | ||||
Stock-based compensation expense | $ | $ 140,321 | $ 139,673 | ||
Fair Value Assumptions Used in the Valuation of Stock Options [Abstract] | ||||
Risk-free interest rate | 2.37% | 2.07% | ||
Expected dividend yield | 2.61% | 1.68% | ||
Expected volatility factor | 0.73% | 0.78% | ||
Expected life of the option | 9 years | 8 years 9 months 25 days | ||
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of share options outstanding (in shares) | 421,350 | 337,350 | 421,350 | 396,090 |
Number of Share [Roll Forward] | ||||
Outstanding at beginning of period (in shares) | 396,090 | 337,350 | ||
Exercised (in shares) | (260) | |||
Forfeited (in shares) | (49,540) | (55,500) | ||
Granted (in shares) | 74,800 | 114,500 | ||
Outstanding at end of period (in shares) | 421,350 | 396,090 | ||
Weighted Average Exercise Price [Roll Forward] | ||||
Outstanding at beginning of period (in dollars per share) | $ / shares | $ 3.1315 | $ 3.0092 | ||
Exercised (in dollars per share) | $ / shares | 2.3154 | |||
Forfeited (in dollars per share) | $ / shares | 2.1762 | 2.0946 | ||
Granted (in dollars per share) | $ / shares | 2.0588 | 2.9873 | ||
Outstanding at end of period (in dollars per share) | $ / shares | $ 3.0534 | $ 3.1315 | ||
Number of additional shares authorized (in shares) | 878,390 | |||
Long-Term Incentive Plan 2009 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized for issuance (in shares) | 1,300,000 | |||
Long-Term Incentive Plan 2009 [Member] | Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of share options outstanding (in shares) | 421,350 | 421,350 | ||
Options expiration period from grant date, maximum | 10 years | |||
Award requisite service period | 4 years | |||
Number of Share [Roll Forward] | ||||
Outstanding at end of period (in shares) | 421,350 | |||
Data and Product Costs [Member] | ||||
Stock-based compensation expense for stock options [Abstract] | ||||
Stock-based compensation expense | $ | $ 35,661 | $ 32,588 | ||
Selling, General and Administrative Costs [Member] | ||||
Stock-based compensation expense for stock options [Abstract] | ||||
Stock-based compensation expense | $ | $ 104,660 | $ 107,085 |
COMMON STOCK, STOCK OPTIONS, 26
COMMON STOCK, STOCK OPTIONS, AND STOCK APPRECIATION RIGHTS, Summary Information About Stock Options Outstanding (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options outstanding, number outstanding (in shares) | 421,350 | |
Options outstanding, weighted average remaining contractual life | 5 years 5 months 12 days | |
Outstanding options, weighted average exercise price (in dollars per share) | $ 3.0534 | |
Options exercisable, number exercisable (in shares) | 176,930 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 3.4350 | |
Stock options, compensation cost not yet recognized [Abstract] | ||
Total compensation cost not yet recognized | $ 346,336 | |
Total compensation cost not yet recognized, period for recognition | 3 years 5 months 12 days | |
Stock Options [Member] | ||
Additional disclosures [Abstract] | ||
Share price (in dollars per share) | $ 1.75 | $ 3.10 |
Aggregate intrinsic value of options outstanding | $ 3,900 | $ 120,966 |
Exercise Price Range $ 1.00 - $ 2.00 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Range of exercise prices, lower range limit (in dollars per share) | $ 1 | |
Range of exercise prices, upper range limit (in dollars per share) | $ 2 | |
Options outstanding, number outstanding (in shares) | 54,800 | |
Options outstanding, weighted average remaining contractual life | 9 years 9 months 14 days | |
Outstanding options, weighted average exercise price (in dollars per share) | $ 1.6788 | |
Options exercisable, number exercisable (in shares) | 0 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 0 | |
Exercise Price Range $ 2.01 - $ 3.00 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Range of exercise prices, lower range limit (in dollars per share) | 2.01 | |
Range of exercise prices, upper range limit (in dollars per share) | $ 3 | |
Options outstanding, number outstanding (in shares) | 163,000 | |
Options outstanding, weighted average remaining contractual life | 6 years 9 months 4 days | |
Outstanding options, weighted average exercise price (in dollars per share) | $ 2.6831 | |
Options exercisable, number exercisable (in shares) | 26,000 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 2.3154 | |
Exercise Price Range $ 3.01 - $ 6.00 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Range of exercise prices, lower range limit (in dollars per share) | 3.01 | |
Range of exercise prices, upper range limit (in dollars per share) | $ 6 | |
Options outstanding, number outstanding (in shares) | 203,550 | |
Options outstanding, weighted average remaining contractual life | 3 years 2 months 26 days | |
Outstanding options, weighted average exercise price (in dollars per share) | $ 3.7200 | |
Options exercisable, number exercisable (in shares) | 150,930 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 3.6278 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 2,041,701 | $ 1,906,890 |
Less accumulated depreciation and amortization | (1,604,485) | (1,476,566) |
Property and equipment, net | 437,216 | 430,324 |
Computer Equipment and Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,485,044 | 1,389,854 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 369,595 | 332,900 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 187,062 | $ 184,136 |
LEASE COMMITMENTS (Details)
LEASE COMMITMENTS (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
LEASE COMMITMENTS [Abstract] | ||
Rental expenses under operating leases | $ 290,634 | $ 291,016 |
Future minimum lease payments for noncancelable operating leases [Abstract] | ||
2,018 | 176,944 | |
2,019 | 182,340 | |
2,020 | 108,578 | |
Total minimum lease payments | $ 467,862 |
NET INCOME PER SHARE (Details)
NET INCOME PER SHARE (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
NET INCOME PER SHARE [Abstract] | ||
Net income | $ 12,070 | $ 52,443 |
Weighted average common shares outstanding - basic (in shares) | 10,722,401 | 10,722,323 |
Potential shares exercisable under stock option plans (in shares) | 143,280 | 256,947 |
LESS: Shares which could be repurchased under treasury stock method (in shares) | (139,560) | (198,759) |
Weighted average common shares outstanding - diluted (in shares) | 10,726,121 | 10,780,511 |
Net income per share [Abstract] | ||
Basic (in dollars per share) | $ 0 | $ 0 |
Diluted (in dollars per share) | $ 0 | $ 0 |
Stock Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 264,675 | 130,338 |