Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Mar. 25, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Entity Registrant Name | CREDITRISKMONITOR COM INC | ||
Entity Central Index Key | 0000315958 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Address, State or Province | NY | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 6,327,730 | ||
Entity Common Stock, Shares Outstanding | 10,722,401 |
BALANCE SHEETS
BALANCE SHEETS - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 10,302,732 | $ 8,275,836 |
Available for sale securities - municipal bonds | 458,237 | 0 |
Accounts receivable, net of allowance of $30,000 | 2,557,443 | 2,287,921 |
Other current assets | 589,072 | 549,821 |
Total current assets | 13,907,484 | 11,113,578 |
Property and equipment, net | 545,675 | 477,973 |
Operating lease right-of-use asset | 2,200,031 | 2,380,974 |
Goodwill | 1,954,460 | 1,954,460 |
Other assets | 84,892 | 35,723 |
Total assets | 18,692,542 | 15,962,708 |
Current liabilities: | ||
Unexpired subscription revenue | 9,646,407 | 8,651,843 |
Accounts payable | 130,089 | 137,500 |
Current portion of operating lease liability | 161,874 | 147,229 |
Current portion of bank loan | 1,299,007 | 0 |
Accrued expenses | 1,822,485 | 1,344,550 |
Total current liabilities | 13,059,862 | 10,281,122 |
Deferred taxes on income, net | 333,432 | 521,765 |
Unexpired subscription revenue, less current portion | 197,545 | 166,169 |
Bank loan, less current portion | 262,493 | 0 |
Operating lease liability, less current portion | 2,137,559 | 2,299,433 |
Total liabilities | 15,990,891 | 13,268,489 |
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 | 29,760,533 | 29,705,673 |
Accumulated deficit | (27,166,106) | (27,118,678) |
Total stockholders' equity | 2,701,651 | 2,694,219 |
Total liabilities and stockholders' equity | $ 18,692,542 | $ 15,962,708 |
BALANCE SHEETS (Parenthetical)
BALANCE SHEETS (Parenthetical) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
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, 2020 | Dec. 31, 2019 | |
STATEMENTS OF OPERATIONS [Abstract] | ||
Operating revenues | $ 15,732,366 | $ 14,501,173 |
Operating expenses: | ||
Data and product costs | 6,026,464 | 5,759,660 |
Selling, general and administrative expenses | 9,724,182 | 8,347,083 |
Depreciation and amortization | 219,847 | 207,224 |
Total operating expenses | 15,970,493 | 14,313,967 |
Income (loss) from operations | (238,127) | 187,206 |
Other income, net | 26,774 | 155,852 |
Income (loss) before income taxes | (211,353) | 343,058 |
Benefit from (provision for) income taxes | 163,925 | (125,464) |
Net income (loss) | $ (47,428) | $ 217,594 |
Net income (loss) per share: | ||
Basic (in dollars per share) | $ 0 | $ 0.02 |
Diluted (in dollars per share) | $ 0 | $ 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, 2018 | $ 107,224 | $ 29,650,760 | $ (26,800,152) | $ 2,957,832 |
Balance (in shares) at Dec. 31, 2018 | 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 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income (loss) | $ 0 | 0 | (47,428) | $ (47,428) |
Stock-based compensation | 0 | 54,860 | 0 | 54,860 |
Balance at Dec. 31, 2020 | $ 107,224 | $ 29,760,533 | $ (27,166,106) | $ 2,701,651 |
Balance (in shares) at Dec. 31, 2020 | 10,722,401 | 10,722,401 |
STATEMENTS OF CASH FLOWS
STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (47,428) | $ 217,594 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Deferred income taxes | (188,333) | 31,384 |
Depreciation and amortization | 219,847 | 207,224 |
Stock-based compensation | 54,860 | 54,913 |
Operating lease | 33,715 | 41,151 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (269,523) | 166,664 |
Other current assets | 3,153 | 12,040 |
Other assets | (91,068) | (110) |
Unexpired subscription revenue | 1,025,940 | 79,567 |
Accounts payable | (7,412) | 42,733 |
Accrued expenses | 477,936 | 33,332 |
Net cash provided by operating activities | 1,211,687 | 886,492 |
Cash flows from investing activities: | ||
Purchase of available for available-for-sale securities - municipal bonds | (458,742) | 0 |
Purchase of property and equipment | (287,549) | (141,435) |
Net cash used in investing activities | (746,291) | (141,435) |
Cash flows from financing activities: | ||
Dividend paid to stockholders | 0 | (536,120) |
Bank loan | 1,561,500 | 0 |
Net cash provided by (used in) financing activities | 1,561,500 | (536,120) |
Net increase in cash and cash equivalents | 2,026,896 | 208,937 |
Cash and cash equivalents at beginning of year | 8,275,836 | 8,066,899 |
Cash and cash equivalents at end of year | 10,302,732 | 8,275,836 |
Cash paid, net during the year for: | ||
Income taxes | $ 66,000 | $ 41,261 |
ORGANIZATION AND DESCRIPTION OF
ORGANIZATION AND DESCRIPTION OF BUSINESS | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Recently Issued Accounting Standards The Financial Accounting Standards Board (“FASB”) and the Securities and Exchange Commission (“SEC”) have issued certain other accounting pronouncements as of December 31, 2020 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 of America 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 10 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 2020 and 2019 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, 2020 and 2019, 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 The Company applies FASB Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers (“ASC 606”) to recognize revenue. ASC 606 requires an entity 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’s primary source of revenue is subscription income which is recognized ratably over the subscription term. The Company has applied the practical expedient to recognize incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that otherwise would have been recognized is one year or less. 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 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. The Company, in accordance with Accounting Standards Update (“ASU”) 2016-01, classifies its debt securities as “available-for-sale” and are recorded at fair value. Realized gains and losses on available-for-sale debt securities are reported in net income with unrealized gains and losses reported in other income. Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk principally consist of cash, cash equivalents, available-for-sale securities 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 of $30,000 as of December, 31, 2021 and 2019, 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, 2020 nor 2019. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2020 | |
FAIR VALUE MEASUREMENTS [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 3 – FAIR VALUE MEASUREMENTS The Company’s cash, cash equivalents and available-for-sale securities are stated at fair value. The carrying value of accounts receivable, other current assets, bank loan and accounts payable approximates fair market value because of the short maturity of these financial instruments. The Company’s cash equivalents are generally classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices. All available-for-sale securities as of December 31, 2020 were municipal bonds. Investments in municipal bonds are valued using pricing models maximizing the use of observable inputs for similar securities. Municipal bonds are classified as Level 2 of the fair value hierarchy. The tables below set forth the Company’s cash and cash equivalents, as well as marketable securities as of December 31, 2020 and December 31, 2019, respectively, which are measured at fair value on a recurring basis by level within the fair value hierarchy. December 31, 2020 Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 10,302,732 $ - $ - $ 10,302,732 Available-for-sale securities $ - $ 458,237 $ - $ 458,237 December 31, 2019 Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 8 ,275,836 $ - $ - $ 8,275,836 The Company did not hold financial assets and liabilities which were recorded at fair value in the Level 2 or 3 categories as of December 31, 2019. The preceding methods may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. The cost and fair value of available-for-sale securities at December 31, 2020 is as follows: Cost Unrealized Loss Fair Value Available-for-sale securities $ 458,742 $ (505 ) $ 458,237 Maturities of available-for-sale securities were as follows at December 31, 2020: Available-for-sale securities Due after 10 years $ 458,237 The fair value of available-for-sale securities are presented in the available-for-sale category by contractual maturity in the preceding table. Expected maturities may differ from contractual maturities because borrowers have the right to call or prepay obligations without call or prepayment penalties. Management evaluates securities for other-than-temporary impairment at least on an annual basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. Management has determined that no other-than-temporary impairment exists as of December 31, 2020. There were no proceeds from the sale of marketable securities in 2020. Subsequent to December 31, 2020 the Company liquidated all of their municipal bond investments in available-for-sale securities, and transferred the proceeds to Level 1 cash and cash equivalent investments. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2020 | |
INCOME TAXES [Abstract] | |
INCOME TAXES | NOTE 4 - INCOME TAXES The Company’s income tax (benefit) expense consisted of the following: 2020 2019 Current: Federal $ 37,373 $ 67,677 State (12,854 ) 26,404 Deferred: Federal (67,742 ) 23,781 State (120,702 ) 7,602 $ (163,925 ) $ 125,464 The actual tax (benefit) expense for 2020 and 2019 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: 2020 2019 Computed “expected” (benefit) expense $ (44,384 ) $ 72,042 Permanent differences 11,516 25,619 State and local income tax expense 2,720 12,344 True-up of current taxes (25,916 ) 4,763 True-up of deferred taxes 11,644 11,014 Change in state approtionment (119,505 ) (318 ) Income tax (benefit) expense $ (163,925 ) $ 125,464 The tax effects of temporary differences that give rise to significant portions of the net deferred tax assets (liabilities) at December 31, 2020 and 2019 are as follows: 2020 2019 Deferred tax assets: Net operating loss carryovers $ - $ - Stock options 17,556 20,085 Accrued vacation 85,436 70,654 Bad debt allowance 6,411 8,314 Deferred revenue 4,732 5,833 Deferred rent 15,999 11,403 Other 17,212 21,972 Total deferred tax assets 147,346 138,261 Deferred tax liabilities: Goodwill (417,688 ) (541,628 ) Fixed assets (63,090 ) (118,398 ) Total deferred tax liabilities (480,778 ) (660,026 ) Net deferred tax liabilities $ (333,432 ) $ (521,765 ) |
COMMON STOCK AND STOCK OPTIONS
COMMON STOCK AND STOCK OPTIONS | 12 Months Ended |
Dec. 31, 2020 | |
COMMON STOCK AND STOCK OPTIONS [Abstract] | |
COMMON STOCK AND STOCK OPTIONS | NOTE 5 - COMMON STOCK AND STOCK OPTIONS Common Stock At December 31, 2020 and December 31, 2019, there were 575,750 and 456,870 shares, respectively, of the Company’s authorized common stock 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, 2020 and 2019, the Company does not have any preferred stock outstanding. Stock Options As of December 31, 2020, the Company has two stock option plans: the 2009 Long-Term Incentive Plan (“2009 Plan”) which ended in 2019, and the 2020 Long-Term Incentive Plan (“2020 Plan”). Both the 2009 and the 2020 Plan authorize 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 the 2009 Plan was 1,000,000 shares of common stock, and the 2020 Plan was 1,000,000 shares of common stock. At December 31, 2020, there were options outstanding for 393,650 shares of common stock under the 2009 Plan, and 182,100 shares of common stock under the 2020 Plan. As of December, 31 2019, there were options outstanding for 456,870 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 and 2020 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 plans for the years ended December 31, 2020 and 2019 are as follows: Number of Shares Weighted Average Exercise Price Outstanding at January 1, 2019 376,850 $ 2.98 Granted 195,800 1.45 Forfeited (115,780 ) 3.06 Outstanding at December 31, 2019 456,870 $ 2.30 Granted 182,100 2.17 Expired (26,000 ) 4.62 Forfeited (37,220 ) 2.15 Outstanding at December 31, 2020 575,750 $ 2.17 As of December 31, 2020, there were 817,900 shares of common stock reserved for the granting of additional options. The 2009 Plan expired at the end of 2019 and no additional options could be granted. 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: 2020 2019 Data and product costs $ 19,928 $ 22,460 Selling, general and administrative costs 34,932 32,453 $ 54,860 $ 54,913 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. The fair value of options granted during the year ended December 31, 2019 was $125,832. The fair value of options granted during the year ended December 31, 2020 was $206,087. The fair value of options at date of grant was estimated using the Black-Scholes model with the following assumptions: 2020 2019 Risk-free interest rate 0.26 % 1.78 % Expected volatility factor 72.57 % 64.00 % Expected dividends 0.05 0.05 Expected life of the option (years) 7.17 9 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, 2020: 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 - $ 2.00 256,100 8.36 $ 1.52 - - $ 2.01 - $ 3.00 279,100 5.67 $ 2.42 57,350 $ 3.01 - $ 6.00 40,550 0.84 $ 4.51 32,550 $ $4.73 575,750 6.53 $ 2.17 89,900 $ $3.30 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 $2.35 and $1.57 as of December 31, 2020 and 2019, 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, 2020 and 2019 was $23,046 and $238,548, respectively. As of December 31, 2020, 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 $407,771. This cost will be amortized on a straight-line basis over a weighted average term of 5.85 years and will be adjusted for subsequent changes in estimated forfeitures. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2020 | |
PROPERTY AND EQUIPMENT [Abstract] | |
PROPERTY AND EQUIPMENT | NOTE 6 - PROPERTY AND EQUIPMENT Property and equipment consisted of the following: 2020 2019 Computer equipment and software $ 1,720,814 $ 1,485,579 Furniture and fixtures 512,975 507,503 Leasehold improvements 268,741 240,328 2,502,530 2,233,410 Less accumulated depreciation and amortization (1,956,855 ) (1,755,437 ) $ 545,675 $ 477,973 |
OPERATING LEASE
OPERATING LEASE | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 to the operating lease liability recorded on the balance sheet: 2021 $ 262,970 2022 270,859 2023 278,985 2024 287,355 2025 295,975 Thereafter 1,473,078 Total future undiscounted lease payments 2,869,223 LESS: Imputed interest (569,789 ) Present value of lease liability $ 2,299,433 Current portion of operating lease liability $ 161,874 Non-current portion of operating lease liability 2,137,559 $ 2,299,433 |
NET INCOME (LOSS) PER SHARE
NET INCOME (LOSS) PER SHARE | 12 Months Ended |
Dec. 31, 2020 | |
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 Net income (loss) $ (47,428 ) $ 217,594 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 10,722,401 10,724,539 $ $ Net income (loss) per share: Basic $ (0.00 ) $ 0.02 Diluted $ (0.00 ) $ 0 .02 Because the Company has reported a net loss for fiscal 2020, diluted net loss per share is the same as basic net loss per share, as the effect of utilizing the fully diluted share count would have reduced the net loss per share. Therefore, all outstanding stock options were excluded from the computation of diluted net loss per share because their effect was anti‐dilutive for each of the periods presented. 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 the average market value. |
RELATED PARTY TRANSACTION
RELATED PARTY TRANSACTION | 12 Months Ended |
Dec. 31, 2020 | |
RELATED PARTY TRANSACTION [Abstract] | |
RELATED PARTY TRANSACTION | NOTE 9 - RELATED PARTY TRANSACTION In October 2020, the Company’s Board of Directors appointed Michael Flum to serve as President and Chief Operating Officer. Previously, he was serving as Senior Vice President and Chief Operating Officer effective October 2019 and had served as Vice President of Operations & Alternative Data since June 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, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards The Financial Accounting Standards Board (“FASB”) and the Securities and Exchange Commission (“SEC”) have issued certain other accounting pronouncements as of December 31, 2020 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 of America 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 10 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 2020 and 2019 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, 2020 and 2019, 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 The Company applies FASB Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers (“ASC 606”) to recognize revenue. ASC 606 requires an entity 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’s primary source of revenue is subscription income which is recognized ratably over the subscription term. The Company has applied the practical expedient to recognize incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that otherwise would have been recognized is one year or less. |
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 |
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. The Company, in accordance with Accounting Standards Update (“ASU”) 2016-01, classifies its debt securities as “available-for-sale” and are recorded at fair value. Realized gains and losses on available-for-sale debt securities are reported in net income with unrealized gains and losses reported in other income. |
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, available-for-sale securities 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 of $30,000 as of December, 31, 2021 and 2019, 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, 2020 nor 2019. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
FAIR VALUE MEASUREMENTS [Abstract] | |
Cash and Cash Equivalents and Marketable Securities Measured at Fair Value on Recurring Basis | The tables below set forth the Company’s cash and cash equivalents, as well as marketable securities as of December 31, 2020 and December 31, 2019, respectively, which are measured at fair value on a recurring basis by level within the fair value hierarchy. December 31, 2020 Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 10,302,732 $ - $ - $ 10,302,732 Available-for-sale securities $ - $ 458,237 $ - $ 458,237 December 31, 2019 Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 8 ,275,836 $ - $ - $ 8,275,836 |
Cost and Fair Value of Available-for-Sale Securities | The cost and fair value of available-for-sale securities at December 31, 2020 is as follows: Cost Unrealized Loss Fair Value Available-for-sale securities $ 458,742 $ (505 ) $ 458,237 |
Maturities of Available-for-Sale Securities | Maturities of available-for-sale securities were as follows at December 31, 2020: Available-for-sale securities Due after 10 years $ 458,237 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
INCOME TAXES [Abstract] | |
Income Tax Expense (Benefit) | The Company’s income tax (benefit) expense consisted of the following: 2020 2019 Current: Federal $ 37,373 $ 67,677 State (12,854 ) 26,404 Deferred: Federal (67,742 ) 23,781 State (120,702 ) 7,602 $ (163,925 ) $ 125,464 |
Income Tax Reconciliation | The actual tax (benefit) expense for 2020 and 2019 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: 2020 2019 Computed “expected” (benefit) expense $ (44,384 ) $ 72,042 Permanent differences 11,516 25,619 State and local income tax expense 2,720 12,344 True-up of current taxes (25,916 ) 4,763 True-up of deferred taxes 11,644 11,014 Change in state approtionment (119,505 ) (318 ) Income tax (benefit) expense $ (163,925 ) $ 125,464 |
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, 2020 and 2019 are as follows: 2020 2019 Deferred tax assets: Net operating loss carryovers $ - $ - Stock options 17,556 20,085 Accrued vacation 85,436 70,654 Bad debt allowance 6,411 8,314 Deferred revenue 4,732 5,833 Deferred rent 15,999 11,403 Other 17,212 21,972 Total deferred tax assets 147,346 138,261 Deferred tax liabilities: Goodwill (417,688 ) (541,628 ) Fixed assets (63,090 ) (118,398 ) Total deferred tax liabilities (480,778 ) (660,026 ) Net deferred tax liabilities $ (333,432 ) $ (521,765 ) |
COMMON STOCK AND STOCK OPTIONS
COMMON STOCK AND STOCK OPTIONS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
COMMON STOCK AND STOCK OPTIONS [Abstract] | |
Stock Option Activity | Transactions with respect to the Company’s stock option plans for the years ended December 31, 2020 and 2019 are as follows: Number of Shares Weighted Average Exercise Price Outstanding at January 1, 2019 376,850 $ 2.98 Granted 195,800 1.45 Forfeited (115,780 ) 3.06 Outstanding at December 31, 2019 456,870 $ 2.30 Granted 182,100 2.17 Expired (26,000 ) 4.62 Forfeited (37,220 ) 2.15 Outstanding at December 31, 2020 575,750 $ 2.17 |
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: 2020 2019 Data and product costs $ 19,928 $ 22,460 Selling, general and administrative costs 34,932 32,453 $ 54,860 $ 54,913 |
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: 2020 2019 Risk-free interest rate 0.26 % 1.78 % Expected volatility factor 72.57 % 64.00 % Expected dividends 0.05 0.05 Expected life of the option (years) 7.17 9 |
Stock Options Outstanding by Price Range | The following table summarizes information about the Company’s stock options outstanding at December 31, 2020: 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 - $ 2.00 256,100 8.36 $ 1.52 - - $ 2.01 - $ 3.00 279,100 5.67 $ 2.42 57,350 $ 3.01 - $ 6.00 40,550 0.84 $ 4.51 32,550 $ $4.73 575,750 6.53 $ 2.17 89,900 $ $3.30 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
PROPERTY AND EQUIPMENT [Abstract] | |
Property and Equipment | Property and equipment consisted of the following: 2020 2019 Computer equipment and software $ 1,720,814 $ 1,485,579 Furniture and fixtures 512,975 507,503 Leasehold improvements 268,741 240,328 2,502,530 2,233,410 Less accumulated depreciation and amortization (1,956,855 ) (1,755,437 ) $ 545,675 $ 477,973 |
OPERATING LEASE (Tables)
OPERATING LEASE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 to the operating lease liability recorded on the balance sheet: 2021 $ 262,970 2022 270,859 2023 278,985 2024 287,355 2025 295,975 Thereafter 1,473,078 Total future undiscounted lease payments 2,869,223 LESS: Imputed interest (569,789 ) Present value of lease liability $ 2,299,433 Current portion of operating lease liability $ 161,874 Non-current portion of operating lease liability 2,137,559 $ 2,299,433 |
NET INCOME (LOSS) PER SHARE (Ta
NET INCOME (LOSS) PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 Net income (loss) $ (47,428 ) $ 217,594 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 10,722,401 10,724,539 $ $ Net income (loss) per share: Basic $ (0.00 ) $ 0.02 Diluted $ (0.00 ) $ 0 .02 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2020USD ($)Segment | Dec. 31, 2019USD ($) | |
Goodwill [Abstract] | ||||
Impairment of goodwill | $ 0 | $ 0 | ||
Long-Lived Assets [Abstract] | ||||
Impairment of long-lived assets | $ 0 | $ 0 | ||
Segment Information [Abstract] | ||||
Number of operating segments | Segment | 1 | |||
Concentration of Credit Risk [Abstract] | ||||
Allowance for doubtful accounts | $ 30,000 | $ 30,000 | $ 30,000 | $ 30,000 |
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 | 10 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 |
FAIR VALUE MEASUREMENTS, Cash a
FAIR VALUE MEASUREMENTS, Cash and Cash Equivalents and Marketable Securities Measured at Fair Value on Recurring Basis (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Cash and Cash Equivalents and Marketable Securities Measured at Fair Value on Recurring Basis [Abstract] | ||
Available-for-sale securities | $ 458,237 | |
Recurring [Member] | ||
Cash and Cash Equivalents and Marketable Securities Measured at Fair Value on Recurring Basis [Abstract] | ||
Cash and cash equivalents | 10,302,732 | $ 8,275,836 |
Available-for-sale securities | 458,237 | |
Recurring [Member] | Level 1 [Member] | ||
Cash and Cash Equivalents and Marketable Securities Measured at Fair Value on Recurring Basis [Abstract] | ||
Cash and cash equivalents | 10,302,732 | 8,275,836 |
Available-for-sale securities | 0 | |
Recurring [Member] | Level 2 [Member] | ||
Cash and Cash Equivalents and Marketable Securities Measured at Fair Value on Recurring Basis [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Available-for-sale securities | 458,237 | |
Recurring [Member] | Level 3 [Member] | ||
Cash and Cash Equivalents and Marketable Securities Measured at Fair Value on Recurring Basis [Abstract] | ||
Cash and cash equivalents | 0 | $ 0 |
Available-for-sale securities | $ 0 |
FAIR VALUE MEASUREMENTS, Cost a
FAIR VALUE MEASUREMENTS, Cost and Fair Value of Available-For-Sale Securities (Details) | Dec. 31, 2020USD ($) |
Cost and Fair Value of Available-For-Sale Securities [Abstract] | |
Available-for-sale, Cost | $ 458,742 |
Available-for-sale, Unrealized Loss | (505) |
Available-for-sale, Fair Value | $ 458,237 |
FAIR VALUE MEASUREMENTS, Maturi
FAIR VALUE MEASUREMENTS, Maturities of Available-for-Sale Securities (Details) | Dec. 31, 2020USD ($) |
Available-for-sale Securities, Debt Maturities [Abstract] | |
Available-for-sale securities Due after 10 years | $ 458,237 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Current [Abstract] | ||
Federal | $ 37,373 | $ 67,677 |
State | (12,854) | 26,404 |
Deferred [Abstract] | ||
Federal | (67,742) | 23,781 |
State | (120,702) | 7,602 |
Income tax (benefit) expense | (163,925) | 125,464 |
Income tax reconciliation [Abstract] | ||
Computed "expected" (benefit) expense | (44,384) | 72,042 |
Permanent differences | 11,516 | 25,619 |
State and local income tax expense | 2,720 | 12,344 |
True-up of current taxes | (25,916) | 4,763 |
True-up of deferred taxes | 11,644 | 11,014 |
Change in state apportionment | (119,505) | (318) |
Income tax (benefit) expense | (163,925) | 125,464 |
Deferred tax assets [Abstract] | ||
Net operating loss carryovers | 0 | 0 |
Stock options | 17,556 | 20,085 |
Accrued vacation | 85,436 | 70,654 |
Bad debt allowance | 6,411 | 8,314 |
Deferred revenue | 4,732 | 5,833 |
Deferred rent | 15,999 | 11,403 |
Other | 17,212 | 21,972 |
Total deferred tax assets | 147,346 | 138,261 |
Deferred tax liabilities [Abstract] | ||
Goodwill | (417,688) | (541,628) |
Fixed assets | (63,090) | (118,398) |
Total deferred tax liabilities | (480,778) | (660,026) |
Net deferred tax liabilities | $ (333,432) | $ (521,765) |
COMMON STOCK AND STOCK OPTION_2
COMMON STOCK AND STOCK OPTIONS (Details) | 12 Months Ended | ||
Dec. 31, 2020Planshares | Dec. 31, 2019shares | Dec. 31, 2018shares | |
COMMON STOCK AND STOCK OPTIONS [Abstract] | |||
Common stock authorized for issuance of outstanding options (in shares) | 575,750 | 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 | 2 | ||
Number of shares authorized for issuance (in shares) | 575,750 | 456,870 | |
Stock Options [Member] | |||
Share-based Compensation Arrangement [Abstract] | |||
Number of share options outstanding (in shares) | 575,750 | 456,870 | 376,850 |
Long-Term Incentive Plan 2009 [Member] | |||
COMMON STOCK AND STOCK OPTIONS [Abstract] | |||
Common stock authorized for issuance of outstanding options (in shares) | 1,000,000 | ||
Share-based Compensation Arrangement [Abstract] | |||
Number of shares authorized for issuance (in shares) | 1,000,000 | ||
Long-Term Incentive Plan 2009 [Member] | Stock Options [Member] | |||
Share-based Compensation Arrangement [Abstract] | |||
Number of share options outstanding (in shares) | 393,650 | 456,870 | |
Options expiration period from grant date, maximum | 10 years | ||
Award requisite service period | 4 years | ||
Long-Term Incentive Plan 2020 [Member] | |||
COMMON STOCK AND STOCK OPTIONS [Abstract] | |||
Common stock authorized for issuance of outstanding options (in shares) | 1,000,000 | ||
Share-based Compensation Arrangement [Abstract] | |||
Number of shares authorized for issuance (in shares) | 1,000,000 | ||
Long-Term Incentive Plan 2020 [Member] | Stock Options [Member] | |||
Share-based Compensation Arrangement [Abstract] | |||
Number of share options outstanding (in shares) | 182,100 | ||
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, 2020 | Dec. 31, 2019 | |
Stock-based compensation expense for stock options [Abstract] | ||
Stock-based compensation expense | $ 54,860 | $ 54,913 |
Common stock reserved for granting of additional options (in shares) | 817,900 | |
Fair value of options granted | $ 206,087 | $ 125,832 |
Fair Value Assumptions Used in the Valuation of Stock Options [Abstract] | ||
Risk-free interest rate | 0.26% | 1.78% |
Expected volatility factor | 72.57% | 64.00% |
Expected dividends | 0.05% | 0.05% |
Expected life of the option | 7 years 2 months 1 day | 9 years |
Stock Options [Member] | ||
Number of Share [Roll Forward] | ||
Outstanding at beginning of period (in shares) | 456,870 | 376,850 |
Granted (in shares) | 182,100 | 195,800 |
Expired (in shares) | (26,000) | |
Forfeited (in shares) | (37,220) | (115,780) |
Outstanding at end of period (in shares) | 575,750 | 456,870 |
Weighted Average Exercise Price [Roll Forward] | ||
Outstanding at beginning of period (in dollars per share) | $ 2.30 | $ 2.98 |
Granted (in dollars per share) | 2.17 | 1.45 |
Expired (in dollars per share) | 4.62 | |
Forfeited (in dollars per share) | 2.15 | 3.06 |
Outstanding at end of period (in dollars per share) | $ 2.17 | $ 2.30 |
Long-Term Incentive Plan 2009 [Member] | ||
Number of Share [Roll Forward] | ||
Granted (in shares) | 0 | |
Long-Term Incentive Plan 2009 [Member] | Stock Options [Member] | ||
Number of Share [Roll Forward] | ||
Outstanding at beginning of period (in shares) | 456,870 | |
Outstanding at end of period (in shares) | 393,650 | 456,870 |
Data and Product Costs [Member] | ||
Stock-based compensation expense for stock options [Abstract] | ||
Stock-based compensation expense | $ 19,928 | $ 22,460 |
Selling, General and Administrative Costs [Member] | ||
Stock-based compensation expense for stock options [Abstract] | ||
Stock-based compensation expense | $ 34,932 | $ 32,453 |
COMMON STOCK AND STOCK OPTION_3
COMMON STOCK AND STOCK OPTIONS, Summary Information About Stock Options Outstanding (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation [Abstract] | ||
Options outstanding, number outstanding (in shares) | 575,750 | |
Options outstanding, weighted average remaining contractual life | 6 years 6 months 11 days | |
Outstanding options, weighted average exercise price (in dollars per share) | $ 2.17 | |
Options exercisable, number exercisable (in shares) | 89,900 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 3.30 | |
Stock options, compensation cost not yet recognized [Abstract] | ||
Total compensation cost not yet recognized | $ 407,771 | |
Total compensation cost not yet recognized, period for recognition | 5 years 10 months 6 days | |
Stock Options [Member] | ||
Additional disclosures [Abstract] | ||
Share price (in dollars per share) | $ 2.35 | $ 1.57 |
Aggregate intrinsic value of options outstanding | $ 23,046 | $ 238,548 |
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) | 256,100 | |
Options outstanding, weighted average remaining contractual life | 8 years 4 months 10 days | |
Outstanding options, weighted average exercise price (in dollars per share) | $ 1.52 | |
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) | 279,100 | |
Options outstanding, weighted average remaining contractual life | 5 years 8 months 1 day | |
Outstanding options, weighted average exercise price (in dollars per share) | $ 2.42 | |
Options exercisable, number exercisable (in shares) | 57,350 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 2.49 | |
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) | 40,550 | |
Options outstanding, weighted average remaining contractual life | 10 months 2 days | |
Outstanding options, weighted average exercise price (in dollars per share) | $ 4.51 | |
Options exercisable, number exercisable (in shares) | 32,550 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 4.73 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Property and Equipment [Abstract] | ||
Property and equipment, gross | $ 2,502,530 | $ 2,233,410 |
Less accumulated depreciation and amortization | (1,956,855) | (1,755,437) |
Property and equipment, net | 545,675 | 477,973 |
Computer Equipment and Software [Member] | ||
Property and Equipment [Abstract] | ||
Property and equipment, gross | 1,720,814 | 1,485,579 |
Furniture and Fixtures [Member] | ||
Property and Equipment [Abstract] | ||
Property and equipment, gross | 512,975 | 507,503 |
Leasehold Improvements [Member] | ||
Property and Equipment [Abstract] | ||
Property and equipment, gross | $ 268,741 | $ 240,328 |
OPERATING LEASE (Details)
OPERATING LEASE (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Operating Lease Undiscounted Cash Flows [Abstract] | ||
2021 | $ 262,970 | |
2022 | 270,859 | |
2023 | 278,985 | |
2024 | 287,355 | |
2025 | 295,975 | |
Thereafter | 1,473,078 | |
Total future undiscounted lease payments | 2,869,222 | |
LESS: Imputed interest | (569,789) | |
Present value of lease liability | 2,299,433 | |
Current portion of operating lease liability | 161,874 | $ 147,229 |
Non-current portion of operating lease liability | 2,137,559 | $ 2,299,433 |
Present value of lease liability | $ 2,299,433 |
NET INCOME (LOSS) PER SHARE (De
NET INCOME (LOSS) PER SHARE (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
NET INCOME (LOSS) PER SHARE [Abstract] | ||
Net (loss) income | $ (47,428) | $ 217,594 |
Weighted average number of common shares outstanding - Basic (in shares) | 10,722,401 | 10,722,401 |
Potential shares exercisable under stock option plans (in shares) | 0 | 13,700 |
Less: Shares which could be repurchased under treasury stock method | 0 | (11,562) |
Weighted average common shares outstanding - diluted (in shares) | 10,722,401 | 10,724,539 |
Net income (loss) per share: | ||
Basic (in dollars per share) | $ 0 | $ 0.02 |
Diluted (in dollars per share) | $ 0 | $ 0.02 |
Stock Options [Member] | ||
Antidilutive Securities Excluded from Computation [Abstract] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 369,455 |