Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 06, 2020 | Jun. 30, 2019 | |
Cover [Abstract] | |||
Entity Registrant Name | CREDITRISKMONITOR COM INC | ||
Entity Central Index Key | 0000315958 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Shell Company | false | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Public Float | $ 6,557,822 | ||
Entity Common Stock, Shares Outstanding | 10,722,401 | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Address, State or Province | NY |
BALANCE SHEETS
BALANCE SHEETS - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 8,275,836 | $ 8,066,899 |
Accounts receivable, net of allowance of $30,000 | 2,287,921 | 2,454,585 |
Other current assets | 549,821 | 561,861 |
Total current assets | 11,113,578 | 11,083,345 |
Property and equipment, net | 477,973 | 543,762 |
Operating lease right-of-use asset | 2,380,974 | 0 |
Goodwill | 1,954,460 | 1,954,460 |
Other assets | 35,723 | 35,613 |
Total assets | 15,962,708 | 13,617,180 |
Current liabilities: | ||
Unexpired subscription revenue | 8,651,843 | 8,560,316 |
Accounts payable | 137,500 | 94,767 |
Current portion of operating lease liability | 147,229 | 0 |
Accrued expenses | 1,344,550 | 1,311,218 |
Total current liabilities | 10,281,122 | 9,966,301 |
Deferred taxes on income, net | 521,765 | 490,381 |
Unexpired subscription revenue, less current portion | 166,169 | 178,129 |
Operating lease liability, less current portion | 2,299,433 | 0 |
Other liabilities | 0 | 24,537 |
Total liabilities | 13,268,489 | 10,659,348 |
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 | 29,705,673 | 29,650,760 |
Accumulated deficit | (27,118,678) | (26,800,152) |
Total stockholders' equity | 2,694,219 | 2,957,832 |
Total liabilities and stockholders' equity | $ 15,962,708 | $ 13,617,180 |
BALANCE SHEETS (Parenthetical)
BALANCE SHEETS (Parenthetical) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
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, 2019 | Dec. 31, 2018 | |
STATEMENTS OF OPERATIONS [Abstract] | ||
Operating revenues | $ 14,501,173 | $ 13,891,004 |
Operating expenses: | ||
Data and product costs | 5,759,660 | 5,764,535 |
Selling, general and administrative expenses | 8,347,083 | 8,257,619 |
Depreciation and amortization | 207,224 | 190,156 |
Total operating expenses | 14,313,967 | 14,212,310 |
Income (loss) from operations | 187,206 | (321,306) |
Other income, net | 155,852 | 129,111 |
Income (loss) before income taxes | 343,058 | (192,195) |
Benefit from (provision) for income taxes | (125,464) | 12,863 |
Net income (loss) | $ 217,594 | $ (179,332) |
Net income (loss) per share: | ||
Basic (in dollars per share) | $ 0.02 | $ (0.02) |
Diluted (in dollars per share) | $ 0.02 | $ (0.02) |
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, 2017 | $ 107,224 | $ 29,559,784 | $ (26,084,700) | $ 3,582,308 |
Balance (in shares) at Dec. 31, 2017 | 10,722,401 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income (loss) | $ 0 | 0 | (179,332) | (179,332) |
Cash dividend paid | 0 | 0 | (536,120) | (536,120) |
Stock-based compensation | 0 | 90,976 | 0 | 90,976 |
Balance at Dec. 31, 2018 | $ 107,224 | 29,650,760 | (26,800,152) | $ 2,957,832 |
Balance (in shares) at Dec. 31, 2018 | 10,722,401 | 10,722,401 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income (loss) | $ 0 | 0 | 217,594 | $ 217,594 |
Cash dividend paid | 0 | 0 | (536,120) | (536,120) |
Stock-based compensation | 0 | 54,913 | 0 | 54,913 |
Balance at Dec. 31, 2019 | $ 107,224 | $ 29,705,673 | $ (27,118,678) | $ 2,694,219 |
Balance (in shares) at Dec. 31, 2019 | 10,722,401 | 10,722,401 |
STATEMENTS OF CASH FLOWS
STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 217,594 | $ (179,332) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Deferred income taxes | 31,384 | (23,952) |
Depreciation and amortization | 207,224 | 190,156 |
Stock-based compensation | 54,913 | 90,976 |
Operating lease | 41,151 | 0 |
Deferred rent | 0 | 8,789 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 166,664 | (314,878) |
Other current assets | 12,040 | (31,162) |
Other assets | (110) | (12,150) |
Unexpired subscription revenue | 79,567 | 433,568 |
Accounts payable | 42,733 | 35,866 |
Accrued expenses | 33,332 | (33,308) |
Net cash provided by operating activities | 886,492 | 164,573 |
Cash flows from investing activities: | ||
Purchase of property and equipment | (141,435) | (296,702) |
Net cash used in investing activities | (141,435) | (296,702) |
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 | 208,937 | (668,249) |
Cash and cash equivalents at beginning of year | 8,066,899 | 8,735,148 |
Cash and cash equivalents at end of year | 8,275,836 | 8,066,899 |
Cash paid (refunded), net during the year for: | ||
Income taxes | $ 41,261 | |
Income taxes | $ (103,812) |
ORGANIZATION AND DESCRIPTION OF
ORGANIZATION AND DESCRIPTION OF BUSINESS | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Recently Issued and Adopted Accounting Standards In May 2014, accounting guidance was issued that replaces most existing revenue recognition guidance under U.S. GAAP. The core principle 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 Company adopted this standard as of January 1, 2018 by applying the modified retrospective approach. Effective January 1, 2019, the Company adopted FASB Topic 842, Leases Leases The Company adopted ASC 842 using a modified retrospective approach for all leases existing at January 1, 2019. The adoption of ASC 842 had a substantial impact on its balance sheet. The most significant impact was the recognition of the operating lease right-of-use assets and the liability for operating leases. Accordingly, upon adoption, leases that were classified as operating leases under ASC 840 were classified as operating leases under ASC 842, and the Company recorded an adjustment of $2.59 million to operating lease right-of-use assets and the related lease liability. The lease liability is based on the present value of the remaining minimum lease payments. As permitted under ASC 842, the Company elected several practical expedients that permits it to not reassess (1) whether a contract is or contains a lease, (2) the classification of existing leases, and (3) whether previously capitalized costs continue to qualify as initial indirect costs. The application of the practical expedients did not have a significant impact on the measurement of the operating lease liability. The impact of the adoption of ASC 842 on the balance sheet at January 1, 2019 was: As reported Dec. 31, 2018 Adoption of ASC 842 Increase Balance Jan. 1, 2019 Operating lease right-to-use asset $ - $ 2,589,875 $ 2,589,875 Total assets 13,617,180 2,589,875 16,207,055 Current portion of operating lease liability - 143,213 143,213 Operating lease liability - 2,446,662 2,446,662 Total liabilities and stockholders’ equity 13,617,180 2,589,875 16,207,055 The FASB and the Securities and Exchange Commission (“SEC”) have issued certain other accounting pronouncements as of December 31, 2019 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 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. 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 estimated useful life or term of lease (i.e., 2 to 7 years) 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 2019 and 2018 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, 2019 and 2018, 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 Beginning in 2018, we account for revenue from contracts with customers in accordance with ASU 2014‑09, “ Revenue from Contracts with Customers ” and a series of related accounting standard updates (Topic 606). The core principle 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. Lease Accounting For all leases, at the lease commencement date, a right-of-use asset and a lease liability are recognized. The right-of-use asset represents the right to use the leased asset for the lease term. The lease liability represents the present value of the remaining lease payments under the lease. Lease payments included in the measurement of the lease liability comprise the following: the fixed noncancelable lease payments and payments for optional renewal periods where it is reasonably certain the renewal period will be exercised. Lease expense for operating leases consists of the lease payments plus any initial direct costs, and is recognized on a straight-line basis over the lease term. The Company’s operating lease right-of-use asset and operating lease liability represents the lease for the office space used to conduct its business. Net Income (Loss) Per Share Net income (loss) 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. Segment Information An operating segment, in part, is a component of an enterprise whose operating results are regularly reviewed by the chief operating decision maker (the “CODM”) to make decisions about resources to be allocated to the segment and assess its performance. Operating segments may be aggregated only to a limited extent. The Company’s CODM, the Chief Executive Officer, reviews financial information presented on a consolidated basis, accompanied by disaggregated information about revenues for purposes of making operating decisions and assessing financial performance. Accordingly, the Company has determined that it has a single operating and reportable segment. In addition, the Company has no foreign operations or any assets in foreign locations. 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. 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, 2019 nor 2018. Reclassifications Certain prior year amounts have been reclassified to conform to the current year presentation. The noncurrent portion of unexpired subscription revenue was reclassified to noncurrent liabilities, which had no effect on previously reported net loss or total stockholders’ equity. |
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS | 12 Months Ended |
Dec. 31, 2019 | |
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: 2019 2018 Cash $ 652,275 $ 958,739 Money market funds 7,623,561 7,108,160 $ 8,275,836 $ 8,066,899 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2019 | |
INCOME TAXES [Abstract] | |
INCOME TAXES | NOTE 4 - INCOME TAXES The Company’s income tax expense (benefit) consisted of the following: 2019 2018 Current: Federal $ 67,677 $ 3,620 State 26,404 7,469 Deferred: Federal 23,781 (18,379 ) State 7,602 (5,573 ) $ 125,464 $ (12,863 ) The actual tax expense (benefit) for 2019 and 2018 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: 2019 2018 Computed "expected" expense (benefit) $ 72,042 $ (40,361 ) Permanent differences 25,619 23,670 State and local income tax expense 12,344 (8,808 ) True-up of current taxes 4,763 4,892 True-up of deferred taxes 11,014 7,117 Change in federal statutory rate (318 ) 627 Income tax benefit $ 125,464 $ (12,863 ) The tax effects of temporary differences that give rise to significant portions of the net deferred tax assets/(liabilities) at December 31, 2019 and 2018 are as follows: 2019 2018 Deferred tax assets: Net operating loss carryovers $ - $ 10,443 Stock options 20,085 16,182 Accrued vacation 70,654 76,817 Bad debt allowance 8,314 8,319 Deferred revenue 5,833 7,384 Deferred rent 11,403 6,804 Other 21,972 24,081 Total deferred tax assets 138,261 150,030 Deferred tax liabilities: Goodwill (541,628 ) (541,972 ) Fixed assets (118,398 ) (98,439 ) Total deferred tax liabilities (660,026 ) (640,411 ) Net deferred tax liabilities $ (521,765 ) $ (490,381 ) |
COMMON STOCK AND STOCK OPTIONS
COMMON STOCK AND STOCK OPTIONS | 12 Months Ended |
Dec. 31, 2019 | |
COMMON STOCK AND STOCK OPTIONS [Abstract] | |
COMMON STOCK AND STOCK OPTIONS | NOTE 5 - COMMON STOCK AND STOCK OPTIONS Common Stock At December 31, 2019, 456,870 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, 2019, the Company does not have any preferred stock outstanding. Stock Options As of December 31, 2019, the Company has one stock option plan: the 2009 Long-Term Incentive Plan (“2009 Plan”). 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, 2019, there were options outstanding for 456,870 shares of common stock under the 2009 Plan and as of this date the 2009 Plan has expired and no additional options can be granted. 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, unless otherwise determined by the Compensation Committee as set forth in the Award Agreement. In the event of a change in control (as defined), the options will vest in full at the time of such change in control. Transactions with respect to the Company’s stock option plan for the years ended December 31, 2019 and 2018 are as follows: Number of Shares Weighted Average Exercise Price Outstanding at January 1, 2018 421,350 $ 3.0534 Forfeited (44,500 ) 3.6855 Outstanding at December 31, 2018 376,850 $ 2.9786 Granted 195,800 1.4523 Forfeited (115,780 ) 3.0584 Outstanding at December 31, 2019 456,870 $ 2.3043 The following table summarizes the stock-based compensation expense for stock options that was recorded in the Company’s results of operations for the years ended December 31: 2019 2018 Data and product costs $ 22,460 $ 35,656 Selling, general and administrative costs 32,453 55,320 $ 54,913 $ 90,976 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 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. No options were granted during the year ended December 31, 2018. The fair value of options granted during the year ended December 31, 2019 was $125,832. The fair value of options at date of grant was estimated using the Black-Scholes model with the following assumptions: Risk-free interest rate 1.78 % Expected dividend yield 3.45 % Expected volatility factor 0.64 Expected life of the option (years) 9.00 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, 2019: 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 - $ 2.00 250,600 9.37 $ 1.5018 - - $ 2.01 - $ 3.00 139,720 4.71 $ 2.6746 46,176 $ 2.3154 $ 3.01 - $ 6.00 66,550 1.45 $ 4.5485 56,550 $ 4.7171 456,870 6.79 $ 2.3043 102,726 $ 3.6375 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 $1.57 and $1.90 as of December 31, 2019 and 2018, 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, 2019 and 2018 was $23,046 and $12,120, respectively. As of December 31, 2019, 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 $284,344. This cost will be amortized on a straight-line basis over a weighted average term of 4.91 years and will be adjusted for subsequent changes in estimated forfeitures. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2019 | |
PROPERTY AND EQUIPMENT [Abstract] | |
PROPERTY AND EQUIPMENT | NOTE 6 - PROPERTY AND EQUIPMENT Property and equipment consisted of the following: 2019 2018 Computer equipment and software $ 1,485,579 $ 1,347,020 Furniture and fixtures 507,503 504,628 Leasehold improvements 240,328 240,328 2,233,410 2,091,976 Less accumulated depreciation and amortization (1,755,437 ) (1,548,214 ) $ 477,973 $ 543,762 |
OPERATING LEASE
OPERATING LEASE | 12 Months Ended |
Dec. 31, 2019 | |
OPERATING LEASE [Abstract] | |
OPERATING LEASE | NOTE 7 – OPERATING LEASE The following table reconciles the undiscounted cash flows for the Company’s operating lease at December 31, 2019 to the operating lease liability recorded on the balance sheet: 2020 $ 255,311 2021 262,970 2022 270,859 2023 278,985 2024 287,355 Thereafter 1,769,054 Total future undiscounted lease payments 3,124,534 LESS: Imputed interest at 4.54% (677,872 ) Present value of lease liability $ 2,446,662 Current portion of operating lease liability $ 147,229 Non-current portion of operating lease liability 2,299,433 $ 2,446,662 |
NET INCOME (LOSS) PER SHARE
NET INCOME (LOSS) PER SHARE | 12 Months Ended |
Dec. 31, 2019 | |
NET INCOME (LOSS) PER SHARE [Abstract] | |
NET INCOME (LOSS) PER SHARE | NOTE 8 - NET INCOME (LOSS) PER SHARE Basic net income (loss) per share is based on the weighted average number of common shares outstanding. Diluted net income (loss) per share is based on the weighted average number of common shares outstanding and the dilutive effect of outstanding stock options: 2019 2018 Net income (loss) $ 217,594 $ (179,332 ) Weighted average common shares outstanding – basic 10,722,401 10,722,401 Potential shares exercisable under stock option plans 13,700 -- LESS: Shares which could be repurchased under treasury stock method (11,562 ) -- Weighted average common shares outstanding – diluted 10,724,539 10,722,401 Net income (loss) per share: Basic $ 0.02 $ (0.02 ) Diluted $ 0.02 $ (0.02 ) For fiscal 2019, the computation of diluted net income per share excludes the effects of the assumed exercise of 369,455 options, since their inclusion would be anti-dilutive as their exercise prices were above market value. All outstanding stock options were excluded from the computation of diluted loss per share for the year ended December 31, 2018 as they were anti-dilutive. |
RELATED PARTY TRANSACTION
RELATED PARTY TRANSACTION | 12 Months Ended |
Dec. 31, 2019 | |
RELATED PARTY TRANSACTION [Abstract] | |
RELATED PARTY TRANSACTION | NOTE 9 - RELATED PARTY TRANSACTION On October 24, 2019, the Company’s Board of Directors appointed Michael Flum to serve as Senior Vice President and Chief Operating Officer effective immediately. Mr. Flum had served as Vice President of Operations & Alternative Data since June 4, 2018. Mr. Flum is the son of Jerome Flum, the Company’s Chief Executive Officer and Chairman of the Board of Directors, and the brother of Joshua Flum, a director of the Company. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Recently Issued and Adopted Accounting Standards | Recently Issued and Adopted Accounting Standards In May 2014, accounting guidance was issued that replaces most existing revenue recognition guidance under U.S. GAAP. The core principle 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 Company adopted this standard as of January 1, 2018 by applying the modified retrospective approach. Effective January 1, 2019, the Company adopted FASB Topic 842, Leases Leases The Company adopted ASC 842 using a modified retrospective approach for all leases existing at January 1, 2019. The adoption of ASC 842 had a substantial impact on its balance sheet. The most significant impact was the recognition of the operating lease right-of-use assets and the liability for operating leases. Accordingly, upon adoption, leases that were classified as operating leases under ASC 840 were classified as operating leases under ASC 842, and the Company recorded an adjustment of $2.59 million to operating lease right-of-use assets and the related lease liability. The lease liability is based on the present value of the remaining minimum lease payments. As permitted under ASC 842, the Company elected several practical expedients that permits it to not reassess (1) whether a contract is or contains a lease, (2) the classification of existing leases, and (3) whether previously capitalized costs continue to qualify as initial indirect costs. The application of the practical expedients did not have a significant impact on the measurement of the operating lease liability. The impact of the adoption of ASC 842 on the balance sheet at January 1, 2019 was: As reported Dec. 31, 2018 Adoption of ASC 842 Increase Balance Jan. 1, 2019 Operating lease right-to-use asset $ - $ 2,589,875 $ 2,589,875 Total assets 13,617,180 2,589,875 16,207,055 Current portion of operating lease liability - 143,213 143,213 Operating lease liability - 2,446,662 2,446,662 Total liabilities and stockholders’ equity 13,617,180 2,589,875 16,207,055 The FASB and the Securities and Exchange Commission (“SEC”) have issued certain other accounting pronouncements as of December 31, 2019 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 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. |
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 estimated useful life or term of lease (i.e., 2 to 7 years) |
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 2019 and 2018 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, 2019 and 2018, 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 Beginning in 2018, we account for revenue from contracts with customers in accordance with ASU 2014‑09, “ Revenue from Contracts with Customers ” and a series of related accounting standard updates (Topic 606). The core principle 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. |
Lease Accounting | Lease Accounting For all leases, at the lease commencement date, a right-of-use asset and a lease liability are recognized. The right-of-use asset represents the right to use the leased asset for the lease term. The lease liability represents the present value of the remaining lease payments under the lease. Lease payments included in the measurement of the lease liability comprise the following: the fixed noncancelable lease payments and payments for optional renewal periods where it is reasonably certain the renewal period will be exercised. Lease expense for operating leases consists of the lease payments plus any initial direct costs, and is recognized on a straight-line basis over the lease term. The Company’s operating lease right-of-use asset and operating lease liability represents the lease for the office space used to conduct its business. |
Net Income (Loss) Per Share | Net Income (Loss) Per Share Net income (loss) 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. |
Segment Information | Segment Information An operating segment, in part, is a component of an enterprise whose operating results are regularly reviewed by the chief operating decision maker (the “CODM”) to make decisions about resources to be allocated to the segment and assess its performance. Operating segments may be aggregated only to a limited extent. The Company’s CODM, the Chief Executive Officer, reviews financial information presented on a consolidated basis, accompanied by disaggregated information about revenues for purposes of making operating decisions and assessing financial performance. Accordingly, the Company has determined that it has a single operating and reportable segment. In addition, the Company has no foreign operations or any assets in foreign locations. |
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. |
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, 2019 nor 2018. |
Reclassifications | Reclassifications Certain prior year amounts have been reclassified to conform to the current year presentation. The noncurrent portion of unexpired subscription revenue was reclassified to noncurrent liabilities, which had no effect on previously reported net loss or total stockholders’ equity. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Impact of Adoption of ASC 842 on Balance Sheet | The impact of the adoption of ASC 842 on the balance sheet at January 1, 2019 was: As reported Dec. 31, 2018 Adoption of ASC 842 Increase Balance Jan. 1, 2019 Operating lease right-to-use asset $ - $ 2,589,875 $ 2,589,875 Total assets 13,617,180 2,589,875 16,207,055 Current portion of operating lease liability - 143,213 143,213 Operating lease liability - 2,446,662 2,446,662 Total liabilities and stockholders’ equity 13,617,180 2,589,875 16,207,055 |
CASH AND CASH EQUIVALENTS (Tabl
CASH AND CASH EQUIVALENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
CASH AND CASH EQUIVALENTS [Abstract] | |
Cash and Cash Equivalents | Cash and cash equivalents consisted of the following as of December 31: 2019 2018 Cash $ 652,275 $ 958,739 Money market funds 7,623,561 7,108,160 $ 8,275,836 $ 8,066,899 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
INCOME TAXES [Abstract] | |
Income Tax Expense (Benefit) | The Company’s income tax expense (benefit) consisted of the following: 2019 2018 Current: Federal $ 67,677 $ 3,620 State 26,404 7,469 Deferred: Federal 23,781 (18,379 ) State 7,602 (5,573 ) $ 125,464 $ (12,863 ) |
Income Tax Reconciliation | The actual tax expense (benefit) for 2019 and 2018 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: 2019 2018 Computed "expected" expense (benefit) $ 72,042 $ (40,361 ) Permanent differences 25,619 23,670 State and local income tax expense 12,344 (8,808 ) True-up of current taxes 4,763 4,892 True-up of deferred taxes 11,014 7,117 Change in federal statutory rate (318 ) 627 Income tax benefit $ 125,464 $ (12,863 ) |
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, 2019 and 2018 are as follows: 2019 2018 Deferred tax assets: Net operating loss carryovers $ - $ 10,443 Stock options 20,085 16,182 Accrued vacation 70,654 76,817 Bad debt allowance 8,314 8,319 Deferred revenue 5,833 7,384 Deferred rent 11,403 6,804 Other 21,972 24,081 Total deferred tax assets 138,261 150,030 Deferred tax liabilities: Goodwill (541,628 ) (541,972 ) Fixed assets (118,398 ) (98,439 ) Total deferred tax liabilities (660,026 ) (640,411 ) Net deferred tax liabilities $ (521,765 ) $ (490,381 ) |
COMMON STOCK AND STOCK OPTIONS
COMMON STOCK AND STOCK OPTIONS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
COMMON STOCK AND STOCK OPTIONS [Abstract] | |
Stock Option Activity | Transactions with respect to the Company’s stock option plan for the years ended December 31, 2019 and 2018 are as follows: Number of Shares Weighted Average Exercise Price Outstanding at January 1, 2018 421,350 $ 3.0534 Forfeited (44,500 ) 3.6855 Outstanding at December 31, 2018 376,850 $ 2.9786 Granted 195,800 1.4523 Forfeited (115,780 ) 3.0584 Outstanding at December 31, 2019 456,870 $ 2.3043 |
Stock-based Compensation Expense for Stock Options | The following table summarizes the stock-based compensation expense for stock options that was recorded in the Company’s results of operations for the years ended December 31: 2019 2018 Data and product costs $ 22,460 $ 35,656 Selling, general and administrative costs 32,453 55,320 $ 54,913 $ 90,976 |
Fair Value Assumptions used in the Valuation of Stock Options | The fair value of options at date of grant was estimated using the Black-Scholes model with the following assumptions: Risk-free interest rate 1.78 % Expected dividend yield 3.45 % Expected volatility factor 0.64 Expected life of the option (years) 9.00 |
Stock Options Outstanding by Price Range | The following table summarizes information about the Company’s stock options outstanding at December 31, 2019: 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 - $ 2.00 250,600 9.37 $ 1.5018 - - $ 2.01 - $ 3.00 139,720 4.71 $ 2.6746 46,176 $ 2.3154 $ 3.01 - $ 6.00 66,550 1.45 $ 4.5485 56,550 $ 4.7171 456,870 6.79 $ 2.3043 102,726 $ 3.6375 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
PROPERTY AND EQUIPMENT [Abstract] | |
Property and Equipment | Property and equipment consisted of the following: 2019 2018 Computer equipment and software $ 1,485,579 $ 1,347,020 Furniture and fixtures 507,503 504,628 Leasehold improvements 240,328 240,328 2,233,410 2,091,976 Less accumulated depreciation and amortization (1,755,437 ) (1,548,214 ) $ 477,973 $ 543,762 |
OPERATING LEASE (Tables)
OPERATING LEASE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
OPERATING LEASE [Abstract] | |
Undiscounted Cash Flows for Operating Lease | The following table reconciles the undiscounted cash flows for the Company’s operating lease at December 31, 2019 to the operating lease liability recorded on the balance sheet: 2020 $ 255,311 2021 262,970 2022 270,859 2023 278,985 2024 287,355 Thereafter 1,769,054 Total future undiscounted lease payments 3,124,534 LESS: Imputed interest at 4.54% (677,872 ) Present value of lease liability $ 2,446,662 Current portion of operating lease liability $ 147,229 Non-current portion of operating lease liability 2,299,433 $ 2,446,662 |
NET INCOME (LOSS) PER SHARE (Ta
NET INCOME (LOSS) PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
NET INCOME (LOSS) PER SHARE [Abstract] | |
Computation of Basic and Diluted Net Income (Loss) per Share | Basic net income (loss) per share is based on the weighted average number of common shares outstanding. Diluted net income (loss) per share is based on the weighted average number of common shares outstanding and the dilutive effect of outstanding stock options: 2019 2018 Net income (loss) $ 217,594 $ (179,332 ) Weighted average common shares outstanding – basic 10,722,401 10,722,401 Potential shares exercisable under stock option plans 13,700 -- LESS: Shares which could be repurchased under treasury stock method (11,562 ) -- Weighted average common shares outstanding – diluted 10,724,539 10,722,401 Net income (loss) per share: Basic $ 0.02 $ (0.02 ) Diluted $ 0.02 $ (0.02 ) |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2019USD ($)Segment | Dec. 31, 2018USD ($) | |
Recently Issued Accounting Standards [Abstract] | ||||
Operating lease right-to-use asset | $ 2,380,974 | $ 0 | $ 2,380,974 | $ 0 |
Total assets | 15,962,708 | 13,617,180 | 15,962,708 | 13,617,180 |
Current portion of operating lease liability | 147,229 | 0 | 147,229 | 0 |
Operating lease liability | 2,446,662 | 2,446,662 | ||
Total liabilities and stockholders' equity | 15,962,708 | 13,617,180 | 15,962,708 | 13,617,180 |
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 [Abstract] | ||||
Useful life of asset | 3 years | |||
Fixtures, Equipment and Software [Member] | Maximum [Member] | ||||
Property, Plant and Equipment [Abstract] | ||||
Useful life of asset | 6 years | |||
Leasehold Improvements [Member] | Minimum [Member] | ||||
Property, Plant and Equipment [Abstract] | ||||
Useful life of asset | 2 years | |||
Leasehold Improvements [Member] | Maximum [Member] | ||||
Property, Plant and Equipment [Abstract] | ||||
Useful life of asset | 7 years | |||
ASC 842 [Member] | ||||
Recently Issued Accounting Standards [Abstract] | ||||
Operating lease right-to-use asset | 2,589,875 | $ 2,589,875 | ||
Total assets | 16,207,055 | 16,207,055 | ||
Current portion of operating lease liability | 143,213 | 143,213 | ||
Operating lease liability | 2,446,662 | 2,446,662 | ||
Total liabilities and stockholders' equity | 16,207,055 | 16,207,055 | ||
ASC 842 [Member] | As Reported [Member] | ||||
Recently Issued Accounting Standards [Abstract] | ||||
Operating lease right-to-use asset | 0 | 0 | ||
Total assets | 13,617,180 | 13,617,180 | ||
Current portion of operating lease liability | 0 | 0 | ||
Operating lease liability | 0 | 0 | ||
Total liabilities and stockholders' equity | 13,617,180 | 13,617,180 | ||
ASC 842 [Member] | Adoption of ASC 842 Increase [Member] | ||||
Recently Issued Accounting Standards [Abstract] | ||||
Operating lease right-to-use asset | 2,589,875 | 2,589,875 | ||
Total assets | 2,589,875 | 2,589,875 | ||
Current portion of operating lease liability | 143,213 | 143,213 | ||
Operating lease liability | 2,446,662 | 2,446,662 | ||
Total liabilities and stockholders' equity | $ 2,589,875 | $ 2,589,875 |
CASH AND CASH EQUIVALENTS (Deta
CASH AND CASH EQUIVALENTS (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
CASH AND CASH EQUIVALENTS [Abstract] | ||
Cash | $ 652,275 | $ 958,739 |
Money market funds | 7,623,561 | 7,108,160 |
Cash and cash equivalents | $ 8,275,836 | $ 8,066,899 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Current [Abstract] | ||
Federal | $ 67,677 | $ 3,620 |
State | 26,404 | 7,469 |
Deferred [Abstract] | ||
Federal | 23,781 | (18,379) |
State | 7,602 | (5,573) |
Income tax benefit | 125,464 | (12,863) |
Income tax reconciliation [Abstract] | ||
Computed "expected" expense (benefit) | 72,042 | (40,361) |
Permanent differences | 25,619 | 23,670 |
State and local income tax expense | 12,344 | (8,808) |
True-up of current taxes | 4,763 | 4,892 |
True-up of deferred taxes | 11,014 | 7,117 |
Change in federal statutory rate | (318) | 627 |
Income tax benefit | 125,464 | (12,863) |
Deferred tax assets [Abstract] | ||
Net operating loss carryovers | 0 | 10,443 |
Stock options | 20,085 | 16,182 |
Accrued vacation | 70,654 | 76,817 |
Bad debt allowance | 8,314 | 8,319 |
Deferred revenue | 5,833 | 7,384 |
Deferred rent | 11,403 | 6,804 |
Other | 21,972 | 24,081 |
Total deferred tax assets | 138,261 | 150,030 |
Deferred tax liabilities [Abstract] | ||
Goodwill | (541,628) | (541,972) |
Fixed assets | (118,398) | (98,439) |
Total deferred tax liabilities | (660,026) | (640,411) |
Net deferred tax liabilities | $ (521,765) | $ (490,381) |
COMMON STOCK AND STOCK OPTION_2
COMMON STOCK AND STOCK OPTIONS (Details) | 12 Months Ended | ||
Dec. 31, 2019Planshares | Dec. 31, 2018shares | Dec. 31, 2017shares | |
COMMON STOCK AND STOCK OPTIONS [Abstract] | |||
Common stock authorized for issuance of outstanding options (in shares) | 456,870 | ||
Preferred stock, authorized (in shares) | 5,000,000 | 5,000,000 | |
Preferred stock, issued (in shares) | 0 | 0 | |
Share-based Compensation Arrangement [Abstract] | |||
Number of stock option plans | Plan | 1 | ||
Number of shares authorized for issuance (in shares) | 456,870 | ||
Long-Term Incentive Plan 2009 [Member] | |||
COMMON STOCK AND STOCK OPTIONS [Abstract] | |||
Common stock authorized for issuance of outstanding options (in shares) | 1,300,000 | ||
Share-based Compensation Arrangement [Abstract] | |||
Number of shares authorized for issuance (in shares) | 1,300,000 | ||
Long-Term Incentive Plan 2009 [Member] | Stock Options [Member] | |||
Share-based Compensation Arrangement [Abstract] | |||
Number of share options outstanding (in shares) | 456,870 | 376,850 | 421,350 |
Options expiration period from grant date, maximum | 10 years | ||
Award requisite service period | 4 years |
COMMON STOCK AND STOCK OPTIONS,
COMMON STOCK AND STOCK OPTIONS, Activity (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Stock-based compensation expense for stock options [Abstract] | ||
Stock-based compensation expense | $ 54,913 | $ 90,976 |
Fair value of options granted | $ 125,832 | |
Fair Value Assumptions Used in the Valuation of Stock Options [Abstract] | ||
Risk-free interest rate | 1.78% | |
Expected dividend yield | 3.45% | |
Expected volatility factor | 0.64% | |
Expected life of the option | 9 years | |
Long-Term Incentive Plan 2009 [Member] | Stock Options [Member] | ||
Number of Share [Roll Forward] | ||
Outstanding at beginning of period (in shares) | 376,850 | 421,350 |
Forfeited (in shares) | (115,780) | (44,500) |
Granted (in shares) | 195,800 | 0 |
Outstanding at end of period (in shares) | 456,870 | 376,850 |
Weighted Average Exercise Price [Roll Forward] | ||
Outstanding at beginning of period (in dollars per share) | $ 2.9786 | $ 3.0534 |
Forfeited (in dollars per share) | 3.0584 | 3.6855 |
Granted (in dollars per share) | 1.4523 | |
Outstanding at end of period (in dollars per share) | $ 2.3043 | $ 2.9786 |
Data and Product Costs [Member] | ||
Stock-based compensation expense for stock options [Abstract] | ||
Stock-based compensation expense | $ 22,460 | $ 35,656 |
Selling, General and Administrative Costs [Member] | ||
Stock-based compensation expense for stock options [Abstract] | ||
Stock-based compensation expense | $ 32,453 | $ 55,320 |
COMMON STOCK AND STOCK OPTION_3
COMMON STOCK AND STOCK OPTIONS, Summary Information About Stock Options Outstanding (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation [Abstract] | ||
Options outstanding, number outstanding (in shares) | 456,870 | |
Options outstanding, weighted average remaining contractual life | 6 years 9 months 14 days | |
Outstanding options, weighted average exercise price (in dollars per share) | $ 2.3043 | |
Options exercisable, number exercisable (in shares) | 102,726 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 3.6375 | |
Stock options, compensation cost not yet recognized [Abstract] | ||
Total compensation cost not yet recognized | $ 284,344 | |
Total compensation cost not yet recognized, period for recognition | 4 years 10 months 28 days | |
Stock Options [Member] | ||
Additional disclosures [Abstract] | ||
Share price (in dollars per share) | $ 1.57 | $ 1.90 |
Aggregate intrinsic value of options outstanding | $ 23,046 | $ 12,120 |
Exercise Price Range $ 1.00 - $ 2.00 [Member] | ||
Share-based Compensation [Abstract] | ||
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) | 250,600 | |
Options outstanding, weighted average remaining contractual life | 9 years 4 months 13 days | |
Outstanding options, weighted average exercise price (in dollars per share) | $ 1.5018 | |
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 [Abstract] | ||
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) | 139,720 | |
Options outstanding, weighted average remaining contractual life | 4 years 8 months 16 days | |
Outstanding options, weighted average exercise price (in dollars per share) | $ 2.6746 | |
Options exercisable, number exercisable (in shares) | 46,176 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 2.3154 | |
Exercise Price Range $ 3.01 - $ 6.00 [Member] | ||
Share-based Compensation [Abstract] | ||
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) | 66,550 | |
Options outstanding, weighted average remaining contractual life | 1 year 5 months 12 days | |
Outstanding options, weighted average exercise price (in dollars per share) | $ 4.5485 | |
Options exercisable, number exercisable (in shares) | 56,550 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 4.7171 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | $ 2,233,410 | $ 2,091,976 |
Less accumulated depreciation and amortization | (1,755,437) | (1,548,214) |
Property and equipment, net | 477,973 | 543,762 |
Computer Equipment and Software [Member] | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | 1,485,579 | 1,347,020 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | 507,503 | 504,628 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | $ 240,328 | $ 240,328 |
OPERATING LEASE (Details)
OPERATING LEASE (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Operating Lease Undiscounted Cash Flows [Abstract] | ||
2020 | $ 255,311 | |
2021 | 262,970 | |
2022 | 270,859 | |
2023 | 278,985 | |
2024 | 287,355 | |
Thereafter | 1,769,054 | |
Total future undiscounted lease payments | 3,124,534 | |
LESS: Imuputed interest at 4.54% | (677,872) | |
Present value of lease liability | 2,446,662 | |
Current portion of operating lease liability | 147,229 | $ 0 |
Non-current portion of operating lease liability | 2,299,433 | $ 0 |
Present value of lease liability | $ 2,446,662 | |
Imputed interest rate | 4.54% |
NET INCOME (LOSS) PER SHARE (De
NET INCOME (LOSS) PER SHARE (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
NET INCOME (LOSS) PER SHARE [Abstract] | ||
Net income (loss) | $ 217,594 | $ (179,332) |
Weighted average common shares outstanding - basic (in shares) | 10,722,401 | 10,722,401 |
Potential shares exercisable under stock option plans (in shares) | 13,700 | 0 |
LESS: Shares which could be repurchased under treasury stock method (in shares) | (11,562) | 0 |
Weighted average common shares outstanding - diluted (in shares) | 10,724,539 | 10,722,401 |
Net income (loss) per share: | ||
Basic (in dollars per share) | $ 0.02 | $ (0.02) |
Diluted (in dollars per share) | $ 0.02 | $ (0.02) |
Stock Options [Member] | ||
Antidilutive Securities Excluded from Computation [Abstract] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 369,455 | 0 |