CoreCard (CCRD) 10-Q 2 Nov 22 2022 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2022	Oct. 31, 2022
Document Information [Line Items]
Entity Central Index Key	0000320340
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2022
Document Transition Report	false
Entity File Number	1-9330
Entity Registrant Name	CORECARD CORPORATION
Entity Incorporation, State or Country Code	GA
Entity Tax Identification Number	58-1964787
Entity Address, Address Line One	One Meca Way
Entity Address, City or Town	Norcross
Entity Address, State or Province	GA
Entity Address, Postal Zip Code	30093
City Area Code	770
Local Phone Number	381-2900
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
Title of 12(b) Security	Common Stock, $0.01 par value for the class
Trading Symbol	CCRD
Security Exchange Name	NYSE
Entity Common Stock, Shares Outstanding		8,512,869

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Current assets:
Cash	$ 27,068	$ 29,244
Marketable securities	983	0
Accounts receivable, net	7,815	5,547
Other current assets	4,575	2,046
Total current assets	40,441	36,837
Investments	6,550	6,355
Property and equipment, at cost less accumulated depreciation	12,846	10,371
Other long-term assets	4,054	4,585
Total assets	63,891	58,148
Current liabilities:
Accounts payable	1,842	2,763
Deferred revenue, current portion	1,129	2,263
Accrued payroll	2,481	2,145
Accrued expenses	350	404
Income tax payable		1,004
Other current liabilities	2,248	2,274
Total current liabilities	8,050	10,853
Noncurrent liabilities:
Deferred revenue, net of current portion	474	164
Deferred tax liability	788	549
Long-term lease obligation	2,344	2,708
Total noncurrent liabilities	3,606	3,421
Stockholders’ equity:
Common stock, $0.01 par value: Authorized shares - 20,000,000; Issued shares – 9,007,815 and 9,001,311 at September 30, 2022 and December 31, 2021, respectively; Outstanding shares – 8,510,565 and 8,689,815 at September 30, 2022 and December 31, 2021, respectively	90	90
Additional paid-in capital	16,421	16,261
Treasury stock, 497,250 and 311,496 shares at September 30, 2022 and December 31, 2021, respectively, at cost	(16,369)	(11,327)
Accumulated other comprehensive income (loss)	164	(194)
Accumulated income	51,929	39,044
Total stockholders’ equity	52,235	43,874
Total liabilities and stockholders’ equity	$ 63,891	$ 58,148

Consolidated Balance Sheets (_2

Consolidated Balance Sheets (Unaudited)-parentheticals (Parentheticals) - $ / shares	Sep. 30, 2022	Dec. 31, 2021
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)	9,007,815	9,001,311
Common stock, shares outstanding (in shares)	8,510,565	8,689,815
Treasury stock, shares (in shares)	497,250	311,496

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Revenue
Total net revenue	$ 14,450	$ 12,935	$ 53,940	$ 35,202
Cost of revenue
Total cost of revenue	8,431	6,104	23,824	16,091
Expenses
Marketing	80	97	231	179
General and administrative	1,107	1,069	4,048	3,190
Research and development	3,129	2,356	8,916	7,109
Income from operations	1,703	3,309	16,921	8,633
Investment income (loss)	39	53	196	(215)
Other income	60	74	126	230
Income before income taxes	1,802	3,436	17,243	8,648
Income taxes	443	902	4,358	2,269
Net income	$ 1,359	$ 2,534	$ 12,885	$ 6,379
Basic (in dollars per share)	$ 0.16	$ 0.29	$ 1.50	$ 0.72
Diluted (in dollars per share)	$ 0.16	$ 0.29	$ 1.49	$ 0.72
Basic weighted average common shares outstanding (in shares)	8,538,954	8,714,579	8,596,654	8,803,760
Diluted weighted average common shares outstanding (in shares)	8,559,665	8,744,818	8,621,388	8,835,427
Service [Member]
Revenue
Total net revenue	$ 14,450	$ 11,152	$ 39,657	$ 31,119
Cost of revenue
Total cost of revenue	$ 8,431	6,104	23,824	16,091
Product [Member]
Revenue
Total net revenue		$ 1,783	$ 14,283	$ 4,083

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Net income	$ 1,359	$ 2,534	$ 12,885	$ 6,379
Other comprehensive income (loss):
Foreign currency translation adjustments	120	(13)	364	(5)
Change in unrealized loss in marketable securities	(6)		(6)
Total comprehensive income	$ 1,473	$ 2,521	$ 13,243	$ 6,374

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands		Common Stock Outstanding [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Treasury Stock [Member]	AOCI Attributable to Parent [Member]	Retained Earnings [Member]	Treasury Stock, Common [Member]	Total
Balance (in shares) at Dec. 31, 2020		8,885,797
Balance at Dec. 31, 2020			$ 89	$ 15,836	$ (1,639)	$ (140)	$ 30,005		$ 44,151
Common stock repurchased* (in shares)	[1]	70,947
Common stock repurchased*	[1]				2,712				2,712
Stock options exercised (in shares)		67,500
Stock options exercised			1	106					107
Net income									1,040
Stock compensation expense				57					57
Foreign currency translation adjustment						4			4
Common stock repurchased* (in shares)	[1]	(70,947)
Common stock repurchased*	[1]				(2,712)				(2,712)
Balance (in shares) at Mar. 31, 2021		8,882,350
Balance at Mar. 31, 2021			90	15,999	(4,351)	(136)	31,045		42,647
Balance (in shares) at Dec. 31, 2020		8,885,797
Balance at Dec. 31, 2020			89	15,836	(1,639)	(140)	30,005		44,151
Stock compensation expense									198
Balance (in shares) at Jun. 30, 2021		8,742,599
Balance at Jun. 30, 2021			90	16,197	(9,399)	(132)	33,850		40,606
Balance (in shares) at Dec. 31, 2020		8,885,797
Balance at Dec. 31, 2020			89	15,836	(1,639)	(140)	30,005		44,151
Net income									6,379
Balance (in shares) at Sep. 30, 2021		8,700,569
Balance at Sep. 30, 2021			90	16,229		(145)	36,384	$ (10,900)	41,658
Balance (in shares) at Mar. 31, 2021		8,882,350
Balance at Mar. 31, 2021			90	15,999	(4,351)	(136)	31,045		42,647
Common stock repurchased* (in shares)	[1]	144,194
Common stock repurchased*	[1]				5,048				5,048
Net income							2,805		2,805
Foreign currency translation adjustment						4			4
Stock compensation expense (in shares)		4,443
Stock compensation expense				198
Common stock repurchased* (in shares)	[1]	(144,194)
Common stock repurchased*	[1]				(5,048)				(5,048)
Balance (in shares) at Jun. 30, 2021		8,742,599
Balance at Jun. 30, 2021			90	16,197	(9,399)	(132)	33,850		40,606
Common stock repurchased* (in shares)	[1]	42,030
Common stock repurchased*	[1]				1,501				1,501
Net income							2,534		2,534
Stock compensation expense				32					32
Foreign currency translation adjustment						(13)			(13)
Common stock repurchased* (in shares)	[1]	(42,030)
Common stock repurchased*	[1]				(1,501)				(1,501)
Balance (in shares) at Sep. 30, 2021		8,700,569
Balance at Sep. 30, 2021			90	16,229		(145)	36,384	$ (10,900)	41,658
Balance (in shares) at Dec. 31, 2021		8,689,815
Balance at Dec. 31, 2021			90	16,261	(11,327)	(194)	39,044		43,874
Common stock repurchased* (in shares)	[1]	70,864
Common stock repurchased*	[1]				2,332				2,332
Net income						8,670			8,670
Stock compensation expense				10					10
Foreign currency translation adjustment						1			1
Common stock repurchased* (in shares)	[1]	(70,864)
Common stock repurchased*	[1]				(2,332)				(2,332)
Balance (in shares) at Mar. 31, 2022		8,618,951
Balance at Mar. 31, 2022			90	16,271	(13,659)	(193)	47,714		50,223
Balance (in shares) at Dec. 31, 2021		8,689,815
Balance at Dec. 31, 2021			90	16,261	(11,327)	(194)	39,044		$ 43,874
Stock options exercised (in shares)									0
Net income									$ 12,885
Unrealized loss on marketable securities									(6)
Balance (in shares) at Sep. 30, 2022		8,510,565
Balance at Sep. 30, 2022			90	16,421	(16,369)	164	51,929		52,235
Balance (in shares) at Mar. 31, 2022		8,618,951
Balance at Mar. 31, 2022			90	16,271	(13,659)	(193)	47,714		50,223
Common stock repurchased* (in shares)	[1]	58,447
Common stock repurchased*	[1]				1,347				1,347
Net income							2,856		2,856
Foreign currency translation adjustment						243			243
Stock compensation expense (in shares)		6,504
Stock compensation expense				150					150
Common stock repurchased* (in shares)	[1]	(58,447)
Common stock repurchased*	[1]				(1,347)				(1,347)
Balance (in shares) at Jun. 30, 2022		8,567,008
Balance at Jun. 30, 2022			90	16,421	(15,006)	50	50,570		52,125
Common stock repurchased* (in shares)	[1]	56,443
Common stock repurchased*	[1]				1,363				$ 1,363
Stock options exercised (in shares)									0
Net income							1,359		$ 1,359
Foreign currency translation adjustment						120			120
Common stock repurchased* (in shares)	[1]	(56,443)
Common stock repurchased*	[1]				(1,363)				(1,363)
Unrealized loss on marketable securities						(6)			(6)
Balance (in shares) at Sep. 30, 2022		8,510,565
Balance at Sep. 30, 2022			$ 90	$ 16,421	$ (16,369)	$ 164	$ 51,929		$ 52,235
[1]At September 30, 2022, approximately $18,631,000 was authorized for future repurchases of our common stock

Consolidated Statements of St_2

Consolidated Statements of Stockholders' Equity (Unaudited)-parentheticals (Parentheticals)	Sep. 30, 2022 USD ($)
Stock Repurchase Program, Authorized Amount	$ 18,631,000

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
OPERATING ACTIVITIES:
Net income	$ 12,885	$ 6,379
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	3,636	2,697
Stock-based compensation expense	160	287
Deferred income taxes	312
Non-cash interest income	(18)	(72)
Equity in (income) loss of affiliate company	(195)	214
Changes in operating assets and liabilities:
Accounts receivable, net	(2,268)	(10,812)
Other current assets	(2,620)	(978)
Other long-term assets	(41)	(22)
Accounts payable	600	814
Accrued payroll	336	848
Deferred revenue, current portion	(1,134)	230
Accrued expenses	(54)	26
Other current liabilities	(1,052)	(2,844)
Deferred revenue, net of current portion	310	76
Net cash provided by (used for) operating activities	10,857	(3,157)
INVESTING ACTIVITIES:
Purchases of property and equipment	(7,532)	(3,233)
Advances on notes and interest receivable		(550)
Proceeds from payments on notes receivable	165	110
Purchase of intangible assets		(400)
Purchase of available for sale securities	(988)
Purchase of long-term investment		(1,000)
Net cash used for investing activities	(8,355)	(5,073)
FINANCING ACTIVITIES:
Sale of capital stock pursuant to exercise of option		107
Repurchases of common stock	(5,042)	(9,261)
Net cash used for financing activities	(5,042)	(9,154)
Effects of exchange rate changes on cash	364	(5)
Net decrease in cash	(2,176)	(17,389)
Cash at beginning of period	29,244	37,956
Cash at end of period	27,068	20,567
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for income taxes	5,330	$ 2,626
Purchases of property and equipment, accrued but not paid	$ 207

Note 1 - Summary of Significant

Note 1 - Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2022
Notes to Financial Statements
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation Throughout this report, the terms “we”, “us”, “ours”, “CoreCard” and “Company” refer to CoreCard Corporation, including its wholly-owned and majority-owned subsidiaries. The unaudited Consolidated Financial Statements presented in this Form 10-Q have been prepared in accordance with accounting principles generally accepted in the United States applicable to interim financial statements. Accordingly, they do not include all of the information and notes required for complete financial statements. In the opinion of CoreCard management, these Consolidated Financial Statements contain all adjustments (which comprise only normal and recurring accruals) necessary to present fairly the financial position and results of operations as of and for the three and nine month periods ended September 30, 2022 and 2021. The interim results for the three and nine months ended September 30, 2022 are not necessarily indicative of the results to be expected for the full year. These statements should be read in conjunction with our Consolidated Financial Statements and notes thereto for the fiscal year ended December 31, 2021, as filed in our Annual Report on Form 10-K. There have been no material changes in the Company’s significant accounting policies as compared to the significant accounting policies described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. Recent Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments, to require financial assets carried at amortized cost to be presented at the net amount expected to be collected based on historical experience, current conditions and forecasts. Subsequently, the FASB issued ASU No. 2018-19, Codification Improvements to Topic 326, to clarify that receivables arising from operating leases are within the scope of lease accounting standards. Further, the FASB issued ASU No. 2019-04, ASU No. 2019-05, ASU 2019-10 and ASU 2019-11 to provide additional guidance on the credit losses standard. The ASUs are effective for interim and annual periods beginning after December 15, 2022, with early adoption permitted. Adoption of the ASUs is on a modified retrospective basis. We plan to adopt the ASUs on January 1, 2023. The ASUs are currently not expected to have a material impact on our consolidated financial statements. In March 2022, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) 2022-02 "Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures" (ASU 2022-02), which eliminates the accounting guidance for troubled debt restructurings (TDRs) by creditors that have adopted ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" and enhances certain disclosure requirements. The ASU is effective for interim and annual periods beginning after December 15, 2022, with early adoption permitted. Adoption of the ASUs is on a modified retrospective basis. We plan to adopt the ASUs on January 1, 2023. The adoption of ASU 2022-02 is not expected to have a material impact on our Consolidated Financial Statements. We have considered all other recently issued accounting pronouncements and do not believe the adoption of such pronouncements will have a material impact on our Consolidated Financial Statements.

Note 2 - Revenue

Note 2 - Revenue	9 Months Ended
	Sep. 30, 2022
Notes to Financial Statements
Revenue from Contract with Customer [Text Block]	2. REVENUE Disaggregation of Revenue In the following table, revenue is disaggregated by type of revenue for the three and nine months ended September 30, 2022 and 2021: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2022 2021 2022 2021 License $ − $ 1,783 $ 14,283 $ 4,083 Professional services 7,776 6,893 21,943 18,740 Processing and maintenance 5,267 3,457 13,837 10,256 Third party 1,407 802 3,877 2,123 Total $ 14,450 $ 12,935 $ 53,940 $ 35,202 Foreign revenues are based on the location of the customer. Revenues from customers by geographic area for the three and nine months ended September 30, 2022 and 2021 are as follows: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2022 2021 2022 2021 United States $ 13,973 $ 12,610 $ 52,836 $ 34,007 Middle East 451 297 1,030 508 European Union 26 28 74 687 Total $ 14,450 $ 12,935 $ 53,940 $ 35,202 Concentration of Revenue The following table indicates the percentage of consolidated revenue represented by each customer that represented more than 10 percent of consolidated revenue in the three and nine month periods ended September 30, 2022 and 2021. Most of our customers have multi-year contracts with recurring revenue as well as professional services fees that vary by period depending on their business needs. Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Customer A 70 % 72 % 77 % 71 %

Note 3 - Notes Receivable

Note 3 - Notes Receivable	9 Months Ended
	Sep. 30, 2022
Notes to Financial Statements
Financing Receivables [Text Block]	3. NOTES RECEIVABLE In February 2021, we entered into and advanced a $550,000 Promissory Note with a privately held technology company and program manager in the FinTech industry. The note bears interest at the rate of 4.6 percent annually with the maturity date of October 2023. The carrying value of the current portion of our note receivable of $202,000 at September 30, 2022 is included in other current assets on the Consolidated Balance Sheets. The carrying value of the noncurrent portion of our note receivable of $9,000 at September 30, 2022 is included in other long-term assets on the Consolidated Balance Sheets.

Note 4 - Investments

Note 4 - Investments	9 Months Ended
	Sep. 30, 2022
Notes to Financial Statements
Investment [Text Block]	4. INVESTMENTS We hold a 40 percent ownership interest in a privately held identity and professional services company with ties to the FinTech industry. The carrying value of our investment was $1,479,000 at September 30, 2022, included in investments on the Consolidated Balance Sheets. In 2021, the company transferred its advisory business to a new entity. We contributed our note receivable of $2,806,000 and $800,000 of cash for a 28% In the second quarter of 2021, we invested $1,000,000 in a privately held company that provides supply chain and receivables financing. The carrying amount of $1,000,000 at September 30, 2022 is accounted for at cost and is included in investments on the Consolidated Balance Sheets. In the third quarter of 2022, we invested $988,000 in publicly traded multi sector corporate debt securities. The carrying value of $983,000 at September 30, 2022 is accounted for at amortized cost and is included in marketable securities on the Consolidated Balance Sheets.

Note 5 - Related Party Transact

Note 5 - Related Party Transaction	9 Months Ended
	Sep. 30, 2022
Notes to Financial Statements
Related Party Transactions Disclosure [Text Block]	5. RELATED PARTY TRANSACTION The lease on our headquarters and primary facility in Norcross, Georgia is held by ISC Properties, LLC, an entity controlled by our Chairman and Chief Executive Officer, J. Leland Strange. Mr. Strange holds a 100% ownership interest in ISC Properties, LLC. We have determined that ISC Properties, LLC is not a variable interest entity. On March 1, 2022, we canceled our lease agreement dated April 1, 2021 and entered into a new lease to move our corporate headquarters and to procure additional office space. The new lease has a five-year

Note 6 - Stock-Based Compensati

Note 6 - Stock-Based Compensation	9 Months Ended
	Sep. 30, 2022
Notes to Financial Statements
Share-Based Payment Arrangement [Text Block]	6. STOCK-BASED COMPENSATION At September 30, 2022, we have four As of September 30, 2022, there is no no No Options Outstanding and Exercisable: Range of Number Wgt. Avg. Contractual years) Wgt. Avg. Aggregate $3.50 - $3.86 13,000 4.5 $ 3.75 $ 256,480 $7.80 8,000 5.7 $ 7.80 $ 89,550 $19.99 30,000 6.3 $ 19.99 $ 53,400 $39.11 8,000 6.7 $ 39.11 $ − $3.50 - $39.11 59,000 5.9 $ 17.35 $ 399,430 The estimated fair value of options granted is calculated using the Black-Scholes option pricing model with assumptions as previously disclosed in our 2021 Form 10-K. 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 third quarter of 2022 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on September 30, 2022. The amount of aggregate intrinsic value will change based on the market value of the company’s stock.

Note 7 - Fair Value of Financia

Note 7 - Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2022
Notes to Financial Statements
Fair Value, Option [Text Block]	7. FAIR VALUE OF FINANCIAL INSTRUMENTS The carrying value of cash, marketable securities, accounts receivable, notes receivable, accounts payable and certain other financial instruments (such as accrued expenses, and other current liabilities) included in the accompanying Consolidated Balance Sheets approximates their fair value principally due to the short-term maturity of these instruments. Financial instruments that potentially subject us to concentrations of credit risk consist principally of cash and trade accounts and notes receivable. Our available cash is held in accounts managed by third-party financial institutions. Cash may exceed the Federal Deposit Insurance Corporation, or FDIC, insurance limits. While we monitor cash balances on a regular basis and adjust the balances as appropriate, these balances could be impacted if the underlying financial institutions fail. To date, we have experienced no loss or lack of access to our cash; however, we can provide no assurances that access to our cash will not be impacted by adverse conditions in the financial markets.

Note 8 - Fair Value Measurement

Note 8 - Fair Value Measurements	9 Months Ended
	Sep. 30, 2022
Notes to Financial Statements
Fair Value Disclosures [Text Block]	8. FAIR VALUE MEASUREMENTS In determining fair value, the Company uses quoted market prices in active markets. GAAP establishes a fair value measurement framework, provides a single definition of fair value, and requires expanded disclosure summarizing fair value measurements. GAAP emphasizes that fair value is a market-based measurement, not an entity specific measurement. Therefore, a fair value measurement should be determined based on the assumptions that market participants would use in pricing an asset or liability. 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 levels based on the reliability of inputs: • 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 instruments. • Level 2 Valuations based on quoted prices in less active, dealer or broker markets. Fair values are primarily obtained from third party pricing services for identical or comparable assets or liabilities. • 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 valuations incorporate certain assumptions and projections that are not observable in the market and significant professional judgment is needed in determining the fair value assigned to such assets or liabilities. 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. The fair value of equity method and some of our 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. The fair value of certain cost method investments was determined using Level 3 inputs. The following tables present the fair value hierarchy for assets and liabilities measured at fair value: September 30, 2022 Level 1 Level 2 Level 3 Total Fair Value Cash equivalents Money market funds $ 23,980,000 $ − $ − $ 23,980,000 Marketable securities Corporate debt securities 983,000 − − 983,000 Total assets $ 24,963,000 $ − $ − $ 24,963,000 The Company classifies money market funds, commercial paper, U.S. government securities, asset-backed securities and corporate securities within Level 1 or Level 2 of the fair value hierarchy because the Company values these investments using quoted market prices or alternative pricing sources and models utilizing market observable inputs. There were no transfers of financial instruments between the fair value hierarchy levels during the three and nine months ended September 30, 2022. The Company had no marketable securities presented at fair value prior to the three month period ended September 30, 2022.

Note 9 - Marketable Securities

Note 9 - Marketable Securities	9 Months Ended
	Sep. 30, 2022
Notes to Financial Statements
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]	9. MARKETABLE SECURITIES The amortized cost, unrealized gain (loss), and estimated fair value of the Company's investments in securities available for sale consisted of the following: September 30, 2022 Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value Marketable securities Corporate debt securities $ 989,000 - $ (6,000 ) $ 983,000 The Company had marketable securities in an unrealized loss position as of September 30, 2022 and the Company held no marketable securities in 2021. The Company did not

Note 10 - Commitments and Conti

Note 10 - Commitments and Contingencies	9 Months Ended
	Sep. 30, 2022
Notes to Financial Statements
Legal Matters and Contingencies [Text Block]	10. COMMITMENTS AND CONTINGENCIES Leases We have noncancelable operating leases for offices and data centers expiring at various dates through March 2027. These operating leases are included in other long-term assets on the Company's September 30, 2022 and December 31, 2021 Consolidated Balance Sheets and represent the Company’s right to use the underlying asset for the lease term. The Company’s obligation to make lease payments are included in other current liabilities and long-term lease obligation on the Company's September 30, 2022 and December 31, 2021 Consolidated Balance Sheets. Operating lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Because the rate implicit in each lease is not readily determinable, the Company uses its incremental borrowing rate to determine the present value of the lease payments. Supplemental Information Leases Supplemental information related to our right-of-use assets and related lease liabilities is as follows: September 30, 2022 December 31, 2021 Right-of-use asset, net and lease liabilities (in thousands) $ 3,674 $ 3,955 Weighted average remaining lease term (years) 3.3 3.5 Weighted average discount rate 3.4 % 4.1 % For the nine months ended September 30, 2022 and 2021, cash paid for operating leases included in operating cash flows was $994,000 and $886,000, respectively. Maturities of our operating lease liabilities as of September 30, 2022 is as follows: Operating Leases (in thousands) 2022 $ 338 2023 1,321 2024 997 2025 608 Thereafter 562 Total lease liabilities $ 3,826 Lease expense for the three and nine months ended September 30, 2022 and 2021 consisted of the following: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2022 2021 2022 2021 Cost of Revenue $ 183 $ 225 $ 595 $ 667 General and Administrative 105 76 259 188 Research and Development 47 10 140 31 Total $ 335 $ 311 $ 994 $ 886 Legal Matters There are no pending or threatened legal proceedings. However, in the ordinary course of business, from time to time we may be involved in various pending or threatened legal actions. The litigation process is inherently uncertain and it is possible that the resolution of such matters might have a material adverse effect upon our financial condition and/or results of operations. We accrue for unpaid legal fees for services performed to date.

Note 10 - Income Taxes

Note 10 - Income Taxes	9 Months Ended
	Sep. 30, 2022
Notes to Financial Statements
Income Tax Disclosure [Text Block]	11. INCOME TAXES We recognize deferred tax liabilities and assets for the expected future tax consequences of events that have been included in the financial statements or tax returns. Deferred tax liabilities and assets are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are recognized, net of a valuation allowance, for the estimated future tax effects of deductible temporary differences and tax credit carry-forwards. A valuation allowance against deferred tax assets is recorded when, and if, based upon available evidence, it is more likely than not that some or all deferred tax assets will not be realized. There were no We file a consolidated U.S. federal income tax return for all subsidiaries in which our ownership equals or exceeds 80 percent, as well as individual subsidiary returns in various states and foreign jurisdictions. With few exceptions we are no longer subject to U.S. federal, state and local or foreign income tax examinations by taxing authorities for returns filed more than three years ago.

Significant Accounting Policies

Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
Basis of Accounting, Policy [Policy Text Block]	Basis of Presentation
New Accounting Pronouncements, Policy [Policy Text Block]	Recent Accounting Pronouncements Not Yet Adopted

Note 2 - Revenue (Tables)

Note 2 - Revenue (Tables)	9 Months Ended
	Sep. 30, 2022
Notes Tables
Disaggregation of Revenue [Table Text Block]	Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2022 2021 2022 2021 License $ − $ 1,783 $ 14,283 $ 4,083 Professional services 7,776 6,893 21,943 18,740 Processing and maintenance 5,267 3,457 13,837 10,256 Third party 1,407 802 3,877 2,123 Total $ 14,450 $ 12,935 $ 53,940 $ 35,202 Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2022 2021 2022 2021 United States $ 13,973 $ 12,610 $ 52,836 $ 34,007 Middle East 451 297 1,030 508 European Union 26 28 74 687 Total $ 14,450 $ 12,935 $ 53,940 $ 35,202
Schedules of Concentration of Risk, by Risk Factor [Table Text Block]	Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Customer A 70 % 72 % 77 % 71 %

Note 6 - Stock-Based Compensa_2

Note 6 - Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2022
Notes Tables
Share-Based Payment Arrangement, Option, Exercise Price Range [Table Text Block]	Options Outstanding and Exercisable: Range of Number Wgt. Avg. Contractual years) Wgt. Avg. Aggregate $3.50 - $3.86 13,000 4.5 $ 3.75 $ 256,480 $7.80 8,000 5.7 $ 7.80 $ 89,550 $19.99 30,000 6.3 $ 19.99 $ 53,400 $39.11 8,000 6.7 $ 39.11 $ − $3.50 - $39.11 59,000 5.9 $ 17.35 $ 399,430

Note 8 - Fair Value Measureme_2

Note 8 - Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2022
Notes Tables
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Table Text Block]	September 30, 2022 Level 1 Level 2 Level 3 Total Fair Value Cash equivalents Money market funds $ 23,980,000 $ − $ − $ 23,980,000 Marketable securities Corporate debt securities 983,000 − − 983,000 Total assets $ 24,963,000 $ − $ − $ 24,963,000

Note 9 - Marketable Securities

Note 9 - Marketable Securities (Tables)	9 Months Ended
	Sep. 30, 2022
Notes Tables
Marketable Securities [Table Text Block]	September 30, 2022 Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value Marketable securities Corporate debt securities $ 989,000 - $ (6,000 ) $ 983,000

Note 10 - Commitments and Con_2

Note 10 - Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2022
Notes Tables
Lease, Cost [Table Text Block]	September 30, 2022 December 31, 2021 Right-of-use asset, net and lease liabilities (in thousands) $ 3,674 $ 3,955 Weighted average remaining lease term (years) 3.3 3.5 Weighted average discount rate 3.4 % 4.1 % Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2022 2021 2022 2021 Cost of Revenue $ 183 $ 225 $ 595 $ 667 General and Administrative 105 76 259 188 Research and Development 47 10 140 31 Total $ 335 $ 311 $ 994 $ 886
Lessee, Operating Lease, Liability, Maturity [Table Text Block]	Operating Leases (in thousands) 2022 $ 338 2023 1,321 2024 997 2025 608 Thereafter 562 Total lease liabilities $ 3,826

Note 2 - Revenue - Disaggregati

Note 2 - Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Revenue	$ 14,450	$ 12,935	$ 53,940	$ 35,202
UNITED STATES
Revenue	13,973	12,610	52,836	34,007
Middle East [Member]
Revenue	451	297	1,030	508
European Union [Member]
Revenue	26	28	74	687
License [Member]
Revenue		1,783	14,283	4,083
Professional Services [Member]
Revenue	7,776	6,893	21,943	18,740
Processing and Maintenance [Member]
Revenue	5,267	3,457	13,837	10,256
Third party [Member]
Revenue	$ 1,407	$ 802	$ 3,877	$ 2,123

Note 2 - Revenue - Concentratio

Note 2 - Revenue - Concentration of Revenue (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customer A [Member]
Concentration	70%	72%	77%	71%

Note 3 - Notes Receivable (Deta

Note 3 - Notes Receivable (Details Textual) - USD ($)	1 Months Ended
	Feb. 28, 2021	Sep. 30, 2022
Financing Receivable, after Allowance for Credit Loss, Current, Total		$ 202,000
Financing Receivable, after Allowance for Credit Loss, Noncurrent, Total		$ 9,000
Privately-Held Identity and Professional Services Company With Ties to the FinTech Industry [Member]
Payments to Acquire Notes Receivable	$ 550,000
Notes Receivable, Stated Interest Rate	4.60%

Note 4 - Investments (Details T

Note 4 - Investments (Details Textual) - USD ($)	3 Months Ended		6 Months Ended	9 Months Ended
	Sep. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Equity Method Investments			$ 4,070,000
Ownership Percentage					28%
Gain (Loss) on Investments, Total	$ 38,000		$ (195,000)
Payments to Acquire Investments, Total				$ 1,000,000
Long-Term Investments, Total	6,550,000				$ 6,355,000
Marketable Securities, Current	983,000				0
Long-term Investments [Member]
Equity Method Investments	$ 1,479,000
Privately-Held Identity and Professional Services Company With Ties to the FinTech Industry [Member]
Equity Method Investment, Ownership Percentage	40%
Transfer Advisory Business to New Entity [Member]
Financing Receivable, after Allowance for Credit Loss, Total					2,806,000
Cash					$ 800,000
Privately Held Company Providing Supply Chain and Receivables Financing [Member]
Payments to Acquire Investments, Total	$ 988,000	$ 1,000,000
Long-Term Investments, Total	1,000,000
Marketable Securities, Current	$ 983,000

Note 5 - Related Party Transa_2

Note 5 - Related Party Transaction (Details Textual)	Sep. 30, 2022
Related Party Ownership Percentage	100%
Lessee, Operating Lease, Term of Contract (Year)	5 years

Note 6 - Stock-Based Compensa_3

Note 6 - Stock-Based Compensation (Details Textual)	3 Months Ended		9 Months Ended
	Sep. 30, 2022 USD ($) shares	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($) shares	Sep. 30, 2021 USD ($)	May 31, 2022 shares
Number of Stock-based Compensation Plans in Effect	4		4
Share-Based Payment Arrangement, Expense | $	$ 0	$ 32,000	$ 160,000	$ 287,000
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $	$ 0		$ 0
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period (in shares)	0		0
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Expirations in Period (in shares)			0
The 2020 Plan [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Authorized (in shares)	200,000		200,000
The 2022 Stock Plan [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Authorized (in shares)					750,000

Note 6 - Stock Compensation Pla

Note 6 - Stock Compensation Plans - Stock Options Outstanding and Exercisable (Details)	9 Months Ended
	Sep. 30, 2022 USD ($) $ / shares shares
Lower Range of Exercise Price (in dollars per share)	$ 3.50
Upper Range of Exercise Price (in dollars per share)	$ 39.11
Number Outstanding (in shares) | shares	59,000
Wgt. Avg. Contractual Life Remaining (yrs) (Year)	5 years 10 months 24 days
Wgt. Avg. Exercise Price (in dollars per share)	$ 17.35
Aggregate Intrinsic Value | $	$ 399,430
Options Outstanding Exercise Price Range1 [Member]
Lower Range of Exercise Price (in dollars per share)	$ 3.50
Number Outstanding (in shares) | shares	13,000
Wgt. Avg. Contractual Life Remaining (yrs) (Year)	4 years 6 months
Wgt. Avg. Exercise Price (in dollars per share)	$ 3.75
Aggregate Intrinsic Value | $	$ 256,480
Options Exercisable Exercise Price Range 1 [Member]
Upper Range of Exercise Price (in dollars per share)	$ 3.86
Options Outstanding Exercise Price Range2 [Member]
Lower Range of Exercise Price (in dollars per share)	$ 7.80
Number Outstanding (in shares) | shares	8,000
Wgt. Avg. Contractual Life Remaining (yrs) (Year)	5 years 8 months 12 days
Wgt. Avg. Exercise Price (in dollars per share)	$ 7.80
Aggregate Intrinsic Value | $	$ 89,550
Options Outstanding Exercise Price Range 3 [Member]
Lower Range of Exercise Price (in dollars per share)	$ 19.99
Number Outstanding (in shares) | shares	30,000
Wgt. Avg. Contractual Life Remaining (yrs) (Year)	6 years 3 months 18 days
Wgt. Avg. Exercise Price (in dollars per share)	$ 19.99
Aggregate Intrinsic Value | $	$ 53,400
Options Outstanding Exercise Price Range 4 [Member]
Lower Range of Exercise Price (in dollars per share)	$ 39.11
Number Outstanding (in shares) | shares	8,000
Wgt. Avg. Contractual Life Remaining (yrs) (Year)	6 years 8 months 12 days
Wgt. Avg. Exercise Price (in dollars per share)	$ 39.11

Note 8 - Fair Value Measureme_3

Note 8 - Fair Value Measurements - Fair Value Hierarchy for Assets and Liabilities (Details)	Sep. 30, 2022 USD ($)
Total assets, fair value	$ 24,963,000
Corporate Debt Securities [Member]
Debt Securities, Available-for-Sale, Total	983,000
Money Market Funds [Member]
Money market funds, fair value	23,980,000
Fair Value, Inputs, Level 1 [Member]
Total assets, fair value	24,963,000
Fair Value, Inputs, Level 1 [Member] | Corporate Debt Securities [Member]
Debt Securities, Available-for-Sale, Total	983,000
Fair Value, Inputs, Level 1 [Member] | Money Market Funds [Member]
Money market funds, fair value	$ 23,980,000

Note 9 - Marketable Securitie_2

Note 9 - Marketable Securities (Details Textual) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Marketable Securities, Current	$ 983	$ 0
Other-than-temporary Impairment Loss, Debt Securities, Available-for-Sale	$ 0	$ 0

Note 9 - Marketable Securitie_3

Note 9 - Marketable Securities - Marketable Securities (Details) - Corporate Debt Securities [Member]	Sep. 30, 2022 USD ($)
Debt Securities, Available-for-Sale, Amortized Cost, Total	$ 989,000
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Loss, before Tax	(6,000)
Debt Securities, Available-for-Sale, Total	$ 983,000

Note 10 - Commitments and Con_3

Note 10 - Commitments and Contingencies (Details Textual) - USD ($)	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Operating Lease, Payments	$ 994,000	$ 886,000

Note 9 - Commitments and Contin

Note 9 - Commitments and Contingencies - Supplemental Lease Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Right-of-use asset, net and lease liabilities (in thousands)	$ 3,674		$ 3,674		$ 3,955
Lease expense	$ 335	$ 311	$ 994	$ 886
Weighted average remaining lease term (years) (Year)	3 years 3 months 18 days		3 years 3 months 18 days		3 years 6 months
Weighted average discount rate	3.40%		3.40%		4.10%
Cost of Sales [Member]
Lease expense	$ 183	225	$ 595	667
General and Administrative Expense [Member]
Lease expense	105	76	259	188
Research and Development Expense [Member]
Lease expense	$ 47	$ 10	$ 140	$ 31

Note 9 - Commitments and Cont_2

Note 9 - Commitments and Contingencies - Future Minimum Lease Payments (Details) $ in Thousands	Sep. 30, 2022 USD ($)
2022	$ 338
2023	1,321
2024	997
2025	608
Thereafter	562
Total lease liabilities	$ 3,826

Note 10 - Income Taxes (Details

Note 10 - Income Taxes (Details Textual) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Unrecognized Tax Benefits, Ending Balance	$ 0	$ 0