Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | Apr. 30, 2017 | |
Document Information [Line Items] | ||
Entity Registrant Name | INTELLIGENT SYSTEMS CORP | |
Entity Central Index Key | 320,340 | |
Trading Symbol | ins | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 8,743,299 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash | $ 16,505 | $ 17,724 |
Marketable securities | 431 | 418 |
Accounts receivable, net | 758 | 1,329 |
Other current assets | 1,311 | 1,160 |
Total current assets | 19,005 | 20,631 |
Investments | 1,262 | 1,272 |
Property and equipment, at cost less accumulated depreciation | 647 | 700 |
Other long-term assets | 81 | 101 |
Total assets | 20,995 | 22,704 |
Current liabilities: | ||
Accounts payable | 106 | 301 |
Deferred revenue, current portion | 1,338 | 1,474 |
Accrued payroll | 578 | 515 |
Accrued expenses | 74 | 43 |
Other current liabilities | 326 | 1,338 |
Total current liabilities | 2,422 | 3,671 |
Deferred revenue, net of current portion | 69 | 85 |
Other long-term liabilities | 18 | 18 |
Intelligent Systems Corporation stockholders’ equity: | ||
Common stock, $0.01 par value, 20,000,000 shares authorized, 8,743,299 issued and outstanding at March 31, 2017 and December 31, 2016 | 87 | 87 |
Additional paid-in capital | 14,839 | 17,864 |
Accumulated other comprehensive loss | (133) | (163) |
Accumulated income | 3,693 | 4,158 |
Total Intelligent Systems Corporation stockholders’ equity | 18,486 | 21,946 |
Noncontrolling interest | (3,016) | |
Total stockholders’ equity | 18,486 | 18,930 |
Total liabilities and stockholders’ equity | $ 20,995 | $ 22,704 |
Consolidated Balance Sheets (C3
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares | Mar. 31, 2017 | Dec. 31, 2016 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, shares issued (in shares) | 8,743,299 | 8,743,299 |
Common stock, shares outstanding (in shares) | 8,743,299 | 8,743,299 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Revenue | ||
Products | $ 202 | $ 230 |
Services | 1,550 | 1,417 |
Total net revenue | 1,752 | 1,647 |
Cost of revenue | ||
Products | 56 | 64 |
Services | 847 | 647 |
Total cost of revenue | 903 | 711 |
Expenses | ||
Marketing | 79 | 96 |
General and administrative | 481 | 556 |
Research and development | 787 | 645 |
Loss from operations | (498) | (361) |
Other income (loss) | 33 | (664) |
Loss before income taxes | (465) | (1,025) |
Income taxes | (1) | |
Net loss | (465) | (1,024) |
Net loss attributable to noncontrolling interest | 87 | |
Net loss attributable to Intelligent Systems Corporation | $ (465) | $ (937) |
Basic (in dollars per share) | $ (0.05) | $ (0.11) |
Diluted (in dollars per share) | $ (0.05) | $ (0.11) |
Basic weighted average common shares outstanding (in shares) | 8,743,299 | 8,731,299 |
Diluted weighted average common shares outstanding (in shares) | 8,743,299 | 8,731,299 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Net Loss | $ (465) | $ (1,024) |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments | (8) | (4) |
Unrealized gain on available-for-sale marketable securities | 16 | 10 |
Total comprehensive loss | (457) | (1,018) |
Comprehensive loss attributable to noncontrolling interest | 87 | |
Comprehensive loss attributable to Intelligent Systems Corporation | $ (457) | $ (931) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
OPERATING ACTIVITIES: | ||
Net loss | $ (465) | $ (1,024) |
Adjustments to reconcile net loss from continuing operations to net cash used for operating activities: | ||
Depreciation and amortization | 101 | 59 |
Stock-based compensation expense | 13 | 5 |
Non-cash investment expense | 3 | 700 |
Equity in loss of affiliate company | 10 | 6 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 571 | (2) |
Other current assets | (151) | (225) |
Other long-term assets | 20 | 15 |
Accounts payable | (195) | 113 |
Accrued payroll | 63 | 94 |
Deferred revenue, current portion | (136) | 144 |
Accrued expenses | 31 | 10 |
Other current liabilities | (12) | 32 |
Deferred revenue, net of current portion | (16) | (90) |
Net cash used for operating activities | (163) | (163) |
INVESTING ACTIVITIES: | ||
Purchases of property and equipment | (48) | (95) |
Proceeds from sale of long-term investment | 2,248 | |
Purchase of long-term investment | (1,000) | |
Net cash provided by (used for) investing activities | (1,048) | 2,153 |
FINANCING Activities: | ||
Distribution of dividend to stockholders | (3,056) | |
Net cash used for financing activities | (3,056) | |
Net cash used for operating activities of discontinued operations | 120 | |
Effects of exchange rate changes on cash | (8) | (5) |
Net decrease in cash | (1,219) | (1,191) |
Cash at beginning of period | 17,724 | 18,059 |
Cash at end of period | 16,505 | 16,868 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Cash paid during the period for income taxes | $ 120 |
Note 1
Note 1 | 3 Months Ended |
Mar. 31, 2017 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1. Throughout this report, the terms “we”, “us”, “ours”, “ISC” and “company” refer to Intelligent Systems Corporation, including its wholly-owned and majority-owned subsidiaries. The unaudited Consolidated Financial Statements presented in this Form 10 three March 31, 2017 2016. three March 31, 2017 December 31, 2016, 10 |
Note 2 - Investment Write-down
Note 2 - Investment Write-down | 3 Months Ended |
Mar. 31, 2017 | |
Notes to Financial Statements | |
Cost-method Investments, Description [Text Block] | 2. Investment Write-down March 31, 2016, $700,000 $50,000. June 30, 2016, $50,000 zero. |
Note 3 - Stock-based Compensati
Note 3 - Stock-based Compensation | 3 Months Ended |
Mar. 31, 2017 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 3. Stock-based Compensation March 31, 2017, three three March 31, 2017 2016 $13,000 $5,000 March 31, 2017 2016, As of March 31, 2017, $89,000 three March 31, 2017. March 31, 2017: # of Shares Wgt Avg Exercise Price Wgt Avg Remaining Contractual Life in Years Aggregate Value Outstanding at March 31, 2017 304,500 $ 2.06 5.0 $ 742,020 Vested and exercisable at March 31, 2017 256,500 $ 1.76 4.2 $ 702,540 The estimated fair value of options granted is calculated using the Black-Scholes option pricing model with assumptions as previously disclosed in our 2016 10 The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the company’s closing stock price on the last trading day of the first 2017 March 31, 2017. |
Note 4 - Fair Value of Financia
Note 4 - Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2017 | |
Notes to Financial Statements | |
Fair Value, Option [Text Block] | 4. Fair Value of Financial Instruments Financial instruments that potentially subject us to concentrations of credit risk consist principally of cash, marketable securities and trade accounts. Our available cash is held in accounts managed by third may |
Note 5 - Fair Value Measurement
Note 5 - Fair Value Measurements | 3 Months Ended |
Mar. 31, 2017 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 5. Fair Value Measurements GAAP establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable input be used when available. Observable inputs are based on data obtained from sources independent of the company that market participants would use in pricing the asset or liability. Unobservable inputs are inputs that reflect the company’s assumptions about the estimates market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is measured in three • Level 1 Valuations based on quoted prices in active markets for identical assets or liabilities that we have the ability to access. Valuation adjustments and block discounts are not applied to Level 1 • Level 2 Valuations based on quoted prices in less active, dealer or broker markets. Fair values are primarily obtained from third • Level 3 Valuations derived from other valuation methodologies, including pricing models, discounted cash flow models and similar techniques, and not based on market, exchange, dealer, or broker-traded transactions. Level 3 In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. Our available-for-sale investments are classified within Level 1 The fair value of equity method and cost method investments has not been determined as it was impracticable to do so due to the fact that the investee companies are relatively small, early stage private companies for which there is no comparable valuation data available without unreasonable time and expense. |
Note 6 - Concentration of Reven
Note 6 - Concentration of Revenue | 3 Months Ended |
Mar. 31, 2017 | |
Notes to Financial Statements | |
Concentration Risk Disclosure [Text Block] | 6. Concentration of Revenue 10 three March 31, 2017 2016. Three Months Ended March 31 , 201 7 201 6 Customer A 11.6% 23.1% Customer B 13.6% 1.9% Customer C 15.2% 9.4% Customer D 14.5% 14.7% |
Note 7 - Commitments and Contin
Note 7 - Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2017 | |
Notes to Financial Statements | |
Legal Matters and Contingencies [Text Block] | 7. Commitments and Contingencies – 8 2016 10 may |
Note 8 - Stockholders' Equity
Note 8 - Stockholders' Equity | 3 Months Ended |
Mar. 31, 2017 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 8. Stockholders ’ Equity – December 30, 2016, January 1, 2017. 100% March 31, 2017, As a result of the recapitalization of CoreCard, we recorded the following adjustments to our shareholders’ equity to eliminate the minority interest component. There was no impact on the statement of operations for the period ended March 31, 2017. As of As of (in thousands) December 31, 2016 Adjustments January 1, 2017 Intelligent Systems Corporation stockholders’ equity: Common stock $ 87 $ -- $ 87 Additional paid-in capital 17,864 (3,038 ) 14,826 Accumulated other comprehensive loss (163 ) 22 (141 ) Accumulated income 4,158 -- 4,158 Total Intelligent Systems Corporation stockholders’ equity 21,946 (3,016 ) 18,930 Noncontrolling interest (3,016 ) 3,016 -- Total stockholders’ equity $ 18,930 $ -- $ 18,930 |
Note 9 - Income Taxes
Note 9 - Income Taxes | 3 Months Ended |
Mar. 31, 2017 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 9. Income Taxes – There were no unrecognized tax benefits at March 31, 2017 December 31, 2016. We file a consolidated U.S. federal income tax return for all subsidiaries in which our ownership equals or exceeds 80%, 2013. |
Note 10 - Recent Accounting Pro
Note 10 - Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2017 | |
Notes to Financial Statements | |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | 10. Recent Accounting Pronouncements – |
Note 11 - Subsequent Event
Note 11 - Subsequent Event | 3 Months Ended |
Mar. 31, 2017 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 11. Subsequent Event – e valuated subsequent events through the date when these financial statements were issued and are not aware of any significant events that occurred subsequent to the balance sheet date but prior to the filing of this report that would have a material impact on our Consolidated Financial Statements. |
Note 3 - Stock-based Compensa18
Note 3 - Stock-based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Notes Tables | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable [Table Text Block] | # of Shares Wgt Avg Exercise Price Wgt Avg Remaining Contractual Life in Years Aggregate Value Outstanding at March 31, 2017 304,500 $ 2.06 5.0 $ 742,020 Vested and exercisable at March 31, 2017 256,500 $ 1.76 4.2 $ 702,540 |
Note 6 - Concentration of Rev19
Note 6 - Concentration of Revenue (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Notes Tables | |
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | Three Months Ended March 31 , 201 7 201 6 Customer A 11.6% 23.1% Customer B 13.6% 1.9% Customer C 15.2% 9.4% Customer D 14.5% 14.7% |
Note 8 - Stockholders' Equity (
Note 8 - Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Notes Tables | |
Schedule of Stockholders Equity [Table Text Block] | As of As of (in thousands) December 31, 2016 Adjustments January 1, 2017 Intelligent Systems Corporation stockholders’ equity: Common stock $ 87 $ -- $ 87 Additional paid-in capital 17,864 (3,038 ) 14,826 Accumulated other comprehensive loss (163 ) 22 (141 ) Accumulated income 4,158 -- 4,158 Total Intelligent Systems Corporation stockholders’ equity 21,946 (3,016 ) 18,930 Noncontrolling interest (3,016 ) 3,016 -- Total stockholders’ equity $ 18,930 $ -- $ 18,930 |
Note 2 - Investment Write-down
Note 2 - Investment Write-down (Details Textual) - USD ($) | 3 Months Ended | ||
Mar. 31, 2017 | Jun. 30, 2016 | Mar. 31, 2016 | |
Cost-method Investments, Other than Temporary Impairment | $ 3,000 | $ 700,000 | |
Lumense Inc. [Member] | |||
Cost-method Investments, Other than Temporary Impairment | $ 50,000 | 700,000 | |
Cost Method Investments | $ 0 | $ 50,000 |
Note 3 - Stock-based Compensa22
Note 3 - Stock-based Compensation (Details Textual) | 3 Months Ended | |
Mar. 31, 2017USD ($)shares | Mar. 31, 2016USD ($) | |
Number of Stock-based Compensation Plans in Effect | 3 | |
Allocated Share-based Compensation Expense | $ 13,000 | $ 5,000 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 89,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares | 0 |
Note 3 - Stock-based Compensa23
Note 3 - Stock-based Compensation - Summary of Stock Options (Details) | 3 Months Ended |
Mar. 31, 2017USD ($)$ / sharesshares | |
Shares outstanding (in shares) | shares | 304,500 |
Shares outstanding, weighted average exercise price (in dollars per share) | $ / shares | $ 2.06 |
Shares outstanding, weighted average remaining contractual life (Year) | 5 years |
Shares outstanding, aggregate intrinsic value | $ | $ 742,020 |
Shares vested and exercisable (in shares) | shares | 256,500 |
Shares vested and exercisable, weighted average exercise price (in dollars per share) | $ / shares | $ 1.76 |
Shares vested and exercisable, weighted average remaining contractual life (Year) | 4 years 73 days |
Shares vested and exercisable, aggregate intrinsic value | $ | $ 702,540 |
Note 6 - Concentration or Reven
Note 6 - Concentration or Revenue - Concentration of Revenue (Details) - Customer Concentration Risk [Member] - Sales Revenue, Net [Member] | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Customer A [Member] | ||
Concentration risk | 11.60% | 23.10% |
Customer B [Member] | ||
Concentration risk | 13.60% | 1.90% |
Customer C [Member] | ||
Concentration risk | 15.20% | 9.40% |
Customer D [Member] | ||
Concentration risk | 14.50% | 14.70% |
Note 8 - Stockholders' Equity25
Note 8 - Stockholders' Equity (Details Textual) | Jan. 01, 2017 |
CoreCard Software, Inc. Acquisition [Member] | |
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% |
Note 8 - Stockholders' Equity -
Note 8 - Stockholders' Equity - Stockholders' Equity Adjustments (Details) $ in Thousands | Jan. 02, 2017USD ($) |
Balance | $ 18,930 |
Adjustments | |
Balance | 18,930 |
Common Stock [Member] | |
Balance | 87 |
Adjustments | |
Balance | 87 |
Additional Paid-in Capital [Member] | |
Balance | 17,864 |
Adjustments | (3,038) |
Balance | 14,826 |
AOCI Including Portion Attributable to Noncontrolling Interest [Member] | |
Balance | (163) |
Adjustments | 22 |
Balance | (141) |
Retained Earnings [Member] | |
Balance | 4,158 |
Adjustments | |
Balance | 4,158 |
Parent [Member] | |
Balance | 21,946 |
Adjustments | (3,016) |
Balance | 18,930 |
Noncontrolling Interest [Member] | |
Balance | (3,016) |
Adjustments | 3,016 |
Balance |
Note 9 - Income Taxes (Details
Note 9 - Income Taxes (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Unrecognized Tax Benefits | $ 0 | $ 0 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 0 | 0 |
Unrecognized Tax Benefits, Income Tax Penalties Expense | 0 | 0 |
Unrecognized Tax Benefits, Interest on Income Taxes Expense | 0 | $ 0 |
Liability for Uncertainty in Income Taxes, Current | $ 0 |