Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 01, 2013 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Entity Registrant Name | 'CTI GROUP HOLDINGS INC | ' |
Entity Central Index Key | '0000355627 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 29,179,271 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
ASSETS | ' | ' |
Cash and cash equivalents | $747,602 | $2,345,390 |
Trade accounts receivable, less allowance for doubtful accounts of $36,460 and $97,704, respectively | 2,764,203 | 3,199,128 |
Prepaid expenses | 392,547 | 456,957 |
Other current assets | 275,796 | 248,721 |
Total current assets | 4,180,148 | 6,250,196 |
Property, equipment, and software, net | 2,016,936 | 2,026,228 |
Intangible assets, net | 1,322,127 | 1,833,350 |
Goodwill | 2,769,589 | 2,769,589 |
Other assets | 228,440 | 228,515 |
Total assets | 10,517,240 | 13,107,878 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ' | ' |
Accounts payable | 489,243 | 430,162 |
Accrued expenses | 1,059,121 | 919,518 |
Accrued wages and other compensation | 455,194 | 482,752 |
Note payable - short term | 53,199 | 0 |
Income tax payable | 768,159 | 727,370 |
Deferred tax liability - short term | 68,044 | 116,482 |
Deferred revenue | 2,748,060 | 3,886,152 |
Total current liabilities | 5,641,020 | 6,562,436 |
Lease incentive - long term | 70,416 | 64,953 |
Note payable - long term | 101,488 | 0 |
Deferred revenue - long term | 214,931 | 811,808 |
Deferred income tax liability - long term | 371,170 | 410,444 |
Total liabilities | 6,399,025 | 7,849,641 |
Commitments and contingencies | ' | ' |
Stockholders' equity | ' | ' |
Class A common stock, par value $.01 per share; 47,166,666 shares authorized; 29,179,271 issued at September 30, 2013 and 29,178,271 issued at December 31, 2012 | 291,793 | 291,783 |
Additional paid-in capital | 26,164,456 | 26,117,670 |
Accumulated deficit | -22,539,599 | -21,343,000 |
Other comprehensive income - foreign currency translation | 393,708 | 383,927 |
Treasury stock, 140,250 shares, at cost | -192,143 | -192,143 |
Total stockholders' equity | 4,118,215 | 5,258,237 |
Total liabilities and stockholders' equity | $10,517,240 | $13,107,878 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Statement Of Financial Position [Abstract] | ' | ' |
Allowance for doubtful accounts for trade accounts receivable | $36,460 | $97,704 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 47,166,666 | 47,166,666 |
Common stock, shares issued | 29,179,271 | 29,178,271 |
Treasury stock, shares | 140,250 | 140,250 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Revenues: | ' | ' | ' | ' |
Software sales, service fee and license fee revenue | $3,640,209 | $3,950,715 | $11,409,511 | $12,774,366 |
Cost and Expenses: | ' | ' | ' | ' |
Cost of products and services, excluding depreciation and amortization | 883,990 | 946,026 | 2,935,957 | 3,248,315 |
Selling, general and administration | 1,750,184 | 1,653,245 | 5,529,371 | 5,273,879 |
Research and development | 769,910 | 726,500 | 2,288,751 | 2,073,039 |
Depreciation and amortization | 422,525 | 461,501 | 1,400,697 | 1,358,387 |
Total costs and expenses | 3,826,609 | 3,787,272 | 12,154,776 | 11,953,620 |
Income / (loss) from operations | -186,400 | 163,443 | -745,265 | 820,746 |
Other (income) / expense | ' | ' | ' | ' |
Interest expense / (income) | 1,269 | -207 | -1,101 | -6,230 |
Other (income) / expense | 0 | 244 | 0 | 244 |
Total other (income) / expense | 1,269 | 37 | -1,101 | -5,986 |
Income / (loss) before income taxes | -187,669 | 163,406 | -744,164 | 826,732 |
Tax expense | 105,223 | -1,993 | 452,435 | 277,780 |
Net income / (loss) | -292,892 | 165,399 | -1,196,599 | 548,952 |
Other comprehensive income / (loss) | ' | ' | ' | ' |
Foreign currency translation adjustment | -100,734 | -131,600 | 9,781 | -98,998 |
Comprehensive income / (loss) | ($393,626) | $33,799 | ($1,186,818) | $449,954 |
Basic and diluted net income / (loss) per common share | ($0.01) | $0.01 | ($0.04) | $0.02 |
Basic weighted average common shares outstanding | 29,039,021 | 29,038,021 | 29,038,673 | 29,038,021 |
Diluted weighted average common shares outstanding | 29,039,021 | 29,871,566 | 29,038,673 | 29,875,663 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Cash flows from operating activities: | ' | ' |
Net income / (loss) | ($1,196,599) | $548,952 |
Adjustments to reconcile net income / (loss) to net cash (used in) / provided by operating activities: | ' | ' |
Depreciation and amortization | 1,400,697 | 1,358,387 |
Provision for doubtful accounts | -14,821 | 13,369 |
Deferred income taxes | -81,251 | -79,381 |
Recognition of rent incentive benefit | -17,277 | -18,850 |
Stock option grant expense | 46,586 | 39,227 |
Loss on disposal of property and equipment | 0 | 244 |
Changes in operating assets and liabilities: | ' | ' |
Trade receivables | 410,011 | 828,661 |
Prepaid expenses | 84,944 | -4,948 |
Income taxes | 42,247 | -100,258 |
Other assets | 115,995 | 114,456 |
Accounts payable | 62,993 | -21,677 |
Accrued expenses | 168,567 | -106,808 |
Accrued wages and other compensation | -12,161 | 251,342 |
Deferred revenue | -1,629,233 | -2,399,401 |
Cash (used in) / provided by operating activities | -619,302 | 423,315 |
Cash flows used in investing activities: | ' | ' |
Additions to property, equipment, and software | -883,144 | -827,787 |
Cash used in investing activities | -883,144 | -827,787 |
Cash flows (used in) / provided by financing activities: | ' | ' |
Payment on note payable | -15,341 | 0 |
Exercise of stock options | 210 | 0 |
Cash used in financing activities | -15,131 | 0 |
Effect of foreign currency exchange rates on cash and cash equivalents | -80,205 | 113,447 |
Decrease in cash and cash equivalents | -1,597,782 | -291,025 |
Cash and cash equivalents, beginning of period | 2,345,390 | 2,945,182 |
Cash and cash equivalents, end of period | $747,602 | $2,654,157 |
Business_and_Basis_of_Presenta
Business and Basis of Presentation | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Business and Basis of Presentation | ' |
NOTE 1: Business and Basis of Presentation | |
The Company designs, develops, markets and supports billing and data management software and services. The Company operates in two business segments: Electronic Invoice Management (“EIM”) and Call Accounting Management and Recording (“CAMRA”). The majority of the Company’s business is in Europe and North America. | |
The Company was originally incorporated in Pennsylvania in 1968 and reincorporated in the State of Delaware in 1988, pursuant to a merger of CTI into a wholly owned subsidiary formed as a Delaware corporation. In November 1995, the Company changed its name to CTI Group (Holdings) Inc. | |
EIM designs, develops and provides electronic invoice presentment and analysis software that enables internet-based customer self-care for wireline, wireless and convergent providers of telecommunications services. EIM software and services are used primarily by telecommunications services providers to enhance their customer relationships while reducing the providers operational expenses related to paper-based invoice delivery and customer support relating to billing inquiries. CAMRA designs, develops and provides software and services used by enterprise, governmental, institutional end users and managed and hosted customers of service providers to manage their telecommunications service and equipment usage and to analyze voice, video, and data usage, record and monitor communications and perform administrative and back office functions such as cost allocation or client bill back. These applications are commonly available in the market as enterprise-grade products. Customers typically purchase the CAMRA products when upgrading or acquiring a new enterprise communications platform. | |
The accompanying consolidated financial statements have been prepared by the Company without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”), and reflect all adjustments which, in the opinion of management, are necessary for a fair statement of the results for the interim periods presented. All such adjustments are of a normal recurring nature. | |
Certain information in footnote disclosures, normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”), has been condensed or omitted pursuant to the rules and regulations of the SEC, although the Company believes the disclosures are adequate to make the information presented not misleading. These financial statements should be read in conjunction with the consolidated financial statements for the year ended December 31, 2012 and the notes thereto included in the Company’s Annual Report on Form 10-K filed with the SEC. | |
The Company follows accounting standards set by the Financial Accounting Standards Board (“FASB”). The FASB establishes GAAP. Rules and interpretive releases of the SEC under authority of federal securities laws are also sources of authoritative GAAP for SEC registrants, which the Company is required to follow. | |
Amortization expense of developed software, which relates to cost of sales, was presented as depreciation and amortization expense. Amortization expense of developed software amounted to $600,875 and $564,319 for the nine months ended September 30, 2013 and 2012, respectively. Amortization expense of developed software amounted to $145,019 and $190,362 for the three months ended September 30, 2013 and 2012, respectively. |
Supplemental_Schedule_of_NonCa
Supplemental Schedule of Non-Cash Investing and Financing Activities | 9 Months Ended |
Sep. 30, 2013 | |
Supplemental Cash Flow Elements [Abstract] | ' |
Supplemental Schedule of Non-Cash Investing and Financing Activities | ' |
NOTE 2: Supplemental Schedule of Non-Cash Investing and Financing Activities | |
The Company paid $0 for current year income tax estimates for the nine months ended September 30, 2013 and approximately $182,000 for the nine months ended September 30, 2012. The Company paid income taxes of approximately $492,000 and $268,000 during the nine months ended September 30, 2013 and 2012, respectively, for prior year taxes. | |
On May 31, 2013, the Company entered into a financing arrangement agreement with a vendor for $166,600 (the “Payment Plan”) for supporting software. The Company will make twelve quarterly payments of $15,341 which began on September 1, 2013. The interest rate implicit on the Payment Plan is 6.3%. |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2013 | |
Fair Value Disclosures [Abstract] | ' |
Fair Value of Financial Instruments | ' |
NOTE 3: Fair Value of Financial Instruments | |
The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable, note payable, and other accruals approximate their fair values because of their nature and expected duration. |
Debt_Obligations_and_Liquidity
Debt Obligations and Liquidity | 9 Months Ended |
Sep. 30, 2013 | |
Text Block [Abstract] | ' |
Debt Obligations and Liquidity | ' |
NOTE 4: Debt Obligations and Liquidity | |
In October 2013, in order to supplement the Company’s liquidity, Fairford Holdings Limited (“Fairford”), Michael Reinarts and John Birbeck (the “Lenders”) agreed to advance to the Company up to $1,400,000. In connection with the advancement, the Company issued to the Lenders a promissory note, for the amount advanced bearing interest at 6.5% per annum. The promissory note expires on the earlier of (a) demand for payment on March 30, 2014 or thereafter or (b) May 31, 2014. All borrowings are collateralized by substantially all assets of the Company. As of November 1, 2013, the Lenders have advanced $700,000 under the promissory note. | |
The Company believes that the primary sources of liquidity over the next twelve months will be cash on hand and cash from operations and if necessary, advances under the promissory note with the Lenders. The Company is also seeking a new credit facility and other financing arrangements. If the Company is unable to generate adequate cash from operations, enter into a new credit facility or other financing arrangements, or raise funds through the sale of debt to support operations, the Company may seek additional funds from Fairford or the Lenders. |
New_Accounting_Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Changes And Error Corrections [Abstract] | ' |
New Accounting Pronouncements | ' |
NOTE 5: New Accounting Pronouncements | |
In January 2013, the FASB issued Accounting Standards Update (“ASU”) No. 2013-01, Balance Sheet (Topic 210), Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities. This update further clarified the guidance previously issued under ASU No. 2011-11, which required both gross and net presentation of offsetting assets and liabilities. The new requirements were effective retrospectively for fiscal years beginning on or after January 1, 2013, and for interim periods within those fiscal years. As the guidance impacted disclosure requirements only, the Company’s adoption of the guidance on January 1, 2013 did not have an impact on its results of operations, financial position or cash flows. | |
In February 2013, the FASB issued ASU No. 2013-02, Comprehensive Income (Topic 220), Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The guidance was issued in response to ASU No. 2011-05 and required disclosure of the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items of net income, if the amounts reclassified are required under U.S. GAAP to be reclassified in their entirety to net income in the same reporting period. For other amounts not required to be reclassified to net income in their entirety in the same reporting period, or when a portion of the amount is reclassified to a balance sheet account instead of directly to income or expense, a cross reference to the related footnote disclosures for additional information should be provided. The new requirements were effective prospectively for fiscal years beginning on or after December 15, 2012, and for interim periods within those fiscal years. As the guidance impacted disclosure requirements only, the Company’s adoption of the guidance on January 1, 2013 did not have an impact on its results of operations, financial position or cash flows. | |
In March 2013, the FASB issued ASU No. 2013-05, Foreign Currency Matters (Topic 830), Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity. This guidance clarifies the release of the cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a business within a foreign entity. The new requirements are effective prospectively for fiscal years beginning on or after December 15, 2013, and for interim periods within those fiscal years. The Company expects that the adoption of this guidance will not have a material impact on its results of operations, financial position or cash flows. | |
In July 2013, the FASB issued ASU 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. This guidance requires that a liability related to an unrecognized tax benefit be offset against a deferred tax asset for a net operating loss carryforward, a similar tax loss or a tax credit carryforward if certain criteria are met. The new requirements are effective for fiscal years beginning after December 15, 2013. The Company expects that the adoption of this guidance will not have a material impact on its results of operations, financial position or cash flows. |
Basic_and_Diluted_Net_Income_P
Basic and Diluted Net Income Per Common Share | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Basic and Diluted Net Income Per Common Share | ' | ||||||||||||||||
NOTE 6: Basic and Diluted Net Income Per Common Share | |||||||||||||||||
Basic earnings per share amounts are computed by dividing reported earnings available to common stockholders by the weighted average shares outstanding for the period. Diluted earnings per share amounts are computed by dividing reported earnings available to common stockholders by weighted average common shares outstanding for the period giving effect to securities considered to be potentially dilutive common shares, such as stock options. | |||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Net income / (loss) | $ | (292,892 | ) | $ | 165,399 | $ | (1,196,599 | ) | $ | 548,952 | |||||||
Weighted average shares of common stock outstanding used to compute basic earnings per share | 29,039,021 | 29,038,021 | 29,038,673 | 29,038,021 | |||||||||||||
Additional common shares to be issued assuming exercise of stock options and stock warrants | 0 | 833,545 | 0 | 837,642 | |||||||||||||
Weighted average shares of common and common equivalent stock outstanding used to compute diluted earnings per share | 29,039,021 | 29,871,566 | 29,038,673 | 29,875,663 | |||||||||||||
Basic: | |||||||||||||||||
Net income / (loss) per share | $ | (0.01 | ) | $ | 0.01 | $ | (0.04 | ) | $ | 0.02 | |||||||
Weighted average common shares outstanding | 29,039,021 | 29,038,021 | 29,038,673 | 29,038,021 | |||||||||||||
Diluted: | |||||||||||||||||
Net income / (loss) per share | $ | (0.01 | ) | $ | 0.01 | $ | (0.04 | ) | $ | 0.02 | |||||||
Weighted average common and common equivalent shares outstanding | 29,039,021 | 29,871,566 | 29,038,673 | 29,875,663 | |||||||||||||
For the three and nine months ended September 30, 2013, outstanding stock options were excluded from weighted average shares of common and common equivalent shares outstanding due to their anti-dilutive effect as a result of the Company’s net loss. |
Stock_Based_Compensation
Stock Based Compensation | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||||||
Stock Based Compensation | ' | ||||||||||||||||||||
Note 7: Stock Based Compensation | |||||||||||||||||||||
The Company’s Amended and Restated Stock Option and Restricted Stock Plan (the “Plan”) provides for the issuance of incentive and nonqualified stock options to purchase, and restricted stock grants of, shares of the Company’s Class A common stock. Individuals eligible for participation in the Plan included designated officers and other employees (including employees who also serve as directors), non-employee directors, independent contractors and consultants who perform services for the Company. The terms of each grant under the Plan were determined by the board of directors, or a committee of the board administering the Plan, in accordance with the terms of the Plan. Outstanding stock options become immediately exercisable upon a change of control of the Company as in accordance with the terms of the Plan. Stock options granted under the Plan typically become exercisable over a one to five year period. Generally, the options have various vesting periods, which include immediate and term vesting periods. | |||||||||||||||||||||
In 2002, the Company’s stockholders authorized an additional 2,000,000 shares available for grant under the Plan. In addition, the Company filed a registration statement on Form S-8 with the SEC. Such registration statement also covered certain options granted prior to the merger in 2001, which were not granted under the Plan (“Outside Plan Stock Options”). | |||||||||||||||||||||
On December 8, 2005, the Company’s stockholders ratified the CTI Group (Holdings) Inc. Stock Incentive Plan (the “Stock Incentive Plan”) at the Company’s 2005 Annual Meeting of Stockholders. In addition, the Company filed a registration statement on Form S-8 with the SEC. The Stock Incentive Plan replaced the Plan. No new grants will be granted under the Plan. Grants that were made under the Plan prior to the stockholders’ approval of the Stock Incentive Plan will continue to be administered under the Plan. | |||||||||||||||||||||
The Stock Incentive Plan is administered by the Compensation Committee of the board of directors. Under the Stock Incentive Plan, the Compensation Committee is authorized to grant awards to non-employee directors, executive officers and other employees of, and consultants and advisors to, the Company or any of its subsidiaries and to determine the number and types of such awards and the terms, conditions, vesting and other limitations applicable to each such award. In addition, the Compensation Committee has the power to interpret the Stock Incentive Plan and to adopt such rules and regulations as it considers necessary or appropriate for purposes of administering the Stock Incentive Plan. | |||||||||||||||||||||
The following types of awards or any combination of awards may be granted under the Stock Incentive Plan: (i) incentive stock options, (ii) non-qualified stock options, (iii) stock grants, and (iv) performance awards. | |||||||||||||||||||||
The maximum number of shares of Class A common stock with respect to which awards may be granted to any individual participant under the Stock Incentive Plan during each of the Company’s fiscal years will not exceed 1,500,000 shares of Class A common stock, subject to certain adjustments described in the Stock Incentive Plan. | |||||||||||||||||||||
The aggregate number of shares of Class A common stock that are reserved for awards, including shares of Class A common stock underlying stock options, to be granted under the Stock Incentive Plan is 6,000,000 shares, subject to adjustments for stock splits, recapitalizations and other specified events. As of September 30, 2013, there were 1,917,400 awards available for grant under the Stock Incentive Plan. If any outstanding award is cancelled, forfeited, or surrendered to the Company, shares of Class A common stock allocable to such award may again be available for awards under the Stock Incentive Plan. Incentive stock options may be granted only to participants who are executive officers and other employees of the Company or any of its subsidiaries on the day of the grant, and non-qualified stock options may be granted to any participant in the Stock Incentive Plan. No stock option granted under the Stock Incentive Plan will be exercisable later than ten years after the date it is granted. | |||||||||||||||||||||
At September 30, 2013, there were options to purchase 5,587,850 shares of Class A common stock outstanding consisting of 5,337,850 Plan and Stock Incentive Plan options and 250,000 Outside Plan Stock Options. There were exercisable options to purchase an aggregate of 4,675,307 shares of Class A common stock under the Plan and Stock Incentive Plan and options to purchase 250,000 shares of Class A common stock that were Outside Plan Stock Options as of September 30, 2013. | |||||||||||||||||||||
Information with respect to options was as follows: | |||||||||||||||||||||
Options | Exercise | Weighted | |||||||||||||||||||
Shares | Price Range | Average | |||||||||||||||||||
Per Share | Exercise Price | ||||||||||||||||||||
Outstanding, January 1, 2013 | 5,691,350 | $ | 0.08–$0.40 | $ | 0.25 | ||||||||||||||||
Granted | 0 | 0 | 0 | ||||||||||||||||||
Exercised | (1,000 | ) | $ | 0.21 | $ | 0.21 | |||||||||||||||
Expired | (102,500 | ) | $ | 0.08–$0.225 | $ | 0.12 | |||||||||||||||
Outstanding, September 30, 2013 | 5,587,850 | $ | 0.08–$ 0.40 | $ | 0.26 | ||||||||||||||||
The future compensation costs related to non-vested options at September 30, 2013 is $103,652. The future costs will be recognized over the weighted average period of approximately 2.00 years. | |||||||||||||||||||||
The following table summarizes options exercisable at September 30, 2013: | |||||||||||||||||||||
Option | Exercise Price | Weighted | Aggregate | Weighted | |||||||||||||||||
Shares | Range | Average | Intrinsic | Remaining | |||||||||||||||||
Per Share | Exercise Price | Value | Contractual Term | ||||||||||||||||||
September 30, 2013 | 4,925,307 | $ | 0.08-$0.40 | $ | 0.26 | $ | 302,413 | 4.01 years | |||||||||||||
The following table summarizes non-vested options: | |||||||||||||||||||||
Option | |||||||||||||||||||||
Shares | |||||||||||||||||||||
1-Jan-13 | 1,050,048 | ||||||||||||||||||||
Granted | 0 | ||||||||||||||||||||
Expired | (18,334 | ) | |||||||||||||||||||
Vested | (369,171 | ) | |||||||||||||||||||
30-Sep-13 | 662,543 | ||||||||||||||||||||
The fair value of each option award is estimated on the date of grant using a closed-form option valuation model (Black-Scholes-Merton formula) that uses the assumptions noted in the following table: | |||||||||||||||||||||
2012 | |||||||||||||||||||||
Risk-free interest rate | 0.38 | % | |||||||||||||||||||
Dividend yield | 0 | % | |||||||||||||||||||
Volatility factor | 239.36 | % | |||||||||||||||||||
Expected lives | 5 years | ||||||||||||||||||||
The fair value of each option award is estimated on the date of grant using a closed-form option valuation model (Black-Scholes-Merton formula). Expected volatilities are based on implied volatilities from historical volatility of the Company’s stock. The Company uses historical data to estimate option exercise and employee termination within the valuation model; separate groups of employees that have similar historical exercise behavior are considered separately for valuation purposes. The expected term of options granted is derived from general practices used by other companies in the software industry and estimates by the Company of the period of time that options granted are expected to be outstanding. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. | |||||||||||||||||||||
On February 16, 2007, the Company and Fairford Holdings Scandinavia AB (“Fairford Scandinavia”), a wholly-owned subsidiary of Fairford, entered into the Securities Purchase Agreement (the “Agreement”), dated February 16, 2007. Pursuant to the Agreement, on February 16, 2007, the Company issued to Fairford Scandinavia a Class A common stock Purchase Warrant (the “Original Warrant”) to purchase shares of Class A common stock of the Company in consideration for securing the issuance of a $2.6 million letter of credit (the “Letter of Credit”) from SEB Bank to National City Bank. Due to National City Bank’s receipt of the Letter of Credit, the Company was able to obtain the loan at a favorable cash-backed interest rate. Effective April 14, 2008, the Company entered into a new Securities Purchase Agreement with Fairford Scandinavia and issued an additional warrant to Fairford Scandinavia to purchase shares of Class A common stock based on the interest rate savings (the “Additional Warrant”). | |||||||||||||||||||||
Pursuant to the Original Warrant, Fairford Scandinavia is entitled to purchase 419,495 shares of Class A common stock at the exercise price of $0.34 per share, subject to adjustments as described in the Original Warrant, at any time prior to the 10th anniversary of the date of issuance. Pursuant to the Additional Warrant, Fairford Scandinavia is entitled to purchase 620,675 shares of Class A common stock at the exercise price of $0.22 per share, subject to adjustments as described in the Additional Warrant, at any time prior to the 10th anniversary of the date of issuance. On December 31, 2009, Fairford Scandinavia sold all of its owned Class A shares, or 355,099 shares to Fairford for SEK 2.80362 ($0.39) per share. As of September 30, 2013, Fairford beneficially owned 63.7% of the Company’s outstanding Class A common stock and Fairford Scandinavia owned warrants to purchase 1,040,170 shares of the Company’s Class A common stock. Mr. Osseiran, the majority holder of the Company’s Class A common stock and a director of the Company, is a director of Fairford, the President of Fairford Scandinavia and a grantor and sole beneficiary of a revocable trust which is the sole stockholder of Fairford. Mr. Dahl, a director of the Company, is a director of Fairford and the Chairman of Fairford Scandinavia. The Original Warrant and Additional Warrant vested immediately upon grant. | |||||||||||||||||||||
Included within selling, general and administrative expense for the three months ended September 30, 2013 and September 30, 2012 was $15,528 and $19,065, respectively, of stock-based compensation. Included within selling, general and administrative expense for the nine months ended September 30, 2013 and September 30, 2012 was $46,586 and $39,227, respectively, of stock-based compensation. Stock-based compensation expenses are recorded in the Corporate Allocation segment as these amounts are not included in internal measures of segment operating performance. |
Indemnification_to_Customers
Indemnification to Customers | 9 Months Ended |
Sep. 30, 2013 | |
Text Block [Abstract] | ' |
Indemnification to Customers | ' |
NOTE 8: Indemnification to Customers | |
The Company’s agreements with customers generally require the Company to indemnify the customer against claims that the Company’s software infringes third party patent, copyright, trademark or other proprietary rights. Such indemnification obligations are generally limited in a variety of industry-standard provisions including our right to replace the infringing product. As of September 30, 2013, the Company did not experience any material losses related to these indemnification obligations and no material claims with respect thereto were outstanding. The Company does not expect significant claims related to these indemnification obligations, and consequently, the Company has not established any related accruals. |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Commitments And Contingencies Disclosure [Abstract] | ' |
Contingencies | ' |
NOTE 9: Contingencies | |
The Company is subject to claims and lawsuits arising primarily in the ordinary course of business. It is the opinion of management that the disposition or ultimate resolution of any such pending claims and lawsuits will not have a material adverse effect on the consolidated financial position, results of operations or cash flows of the Company. | |
The Company filed a lawsuit for patent infringement under 35 U.S.C. §271 et seq. against Qwest Corporation in the United States District Court for the Southern District of Indiana (“District Court”) on January 12, 2004. The lawsuit seeks treble damages, attorneys’ fees and an injunction for infringement of U.S. Patent No. 5,287,270. On October 30, 2012, the District Court entered an order awarding Qwest Corporation litigation costs in the amount of approximately $250,000. The Company filed a timely notice of appeal on November 13, 2012, and an amended notice of appeal on November 30, 2012. It also was ordered to post a supesedeas bond guaranteeing the payment of costs. The briefing process is ongoing and we anticipate that the United States Court of Appeals for the Federal Circuit (“Federal Circuit”) will issue its opinion in late 2013 or early 2014. As set forth in the appellate brief, filed on February 27, 2013, the Company and legal counsel believe that there are reasonable and persuasive grounds for the Federal Circuit to overturn the District Court’s order granting Qwest Corporation’s motion for summary judgment. The Company and the Company’s legal counsel believe it is more likely than not that the Federal Circuit will overturn the District Court’s order granting Qwest Corporation’s motion for summary judgment, which would vitiate the award of costs. As a result, the Company has concluded that it is not probable that it has incurred a loss relating to this matter. The Company believes a range of possible loss, which cannot be reasonably estimated at this time, is between zero and the amount of the judgment. Because the Company believes that this potential loss is not probable or estimable, it has not recorded any reserves or contingencies related to this legal matter. In the event that the Company’s assumptions used to evaluate this matter as neither probable nor estimable change in future periods, it will be required to record a liability for an adverse outcome. |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
NOTE 10: Income Taxes | |
The Company records a valuation allowance against its net deferred tax asset to the extent management believes, it is more likely than not, that the asset will not be realized. As of September 30, 2013, the Company’s valuation allowance related only to net deferred tax assets in the United States. In addition, at September 30, 2013, the Company considered its cumulative earnings related to non-U.S. subsidiaries to be indefinitely reinvested. | |
The Company recognizes a tax position as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. As of September 30, 2013 and September 30, 2012, the Company had $138,655 and $115,742 of unrecognized tax benefits, respectively, all of which would favorably affect the Company’s effective tax rate if recognized. The Company and its subsidiaries are subject to U.S. federal and state income taxes as well as foreign income tax in the United Kingdom. The Company does not expect the total amount of unrecognized tax benefits to significantly increase in the next twelve months. | |
The Company recognizes interest and/or penalties related to income tax matters in income tax expense. The Company had no amounts accrued for interest and penalties as of September 30, 2013. | |
For the nine months ended September 30, 2013 and September 30, 2012, the Company had $452,435 and $277,780, respectively, of income tax expense and for the three months ended September 30, 2013 and September 30, 2012, the Company had $105,223 and $(1,993) of income tax expense, respectively. The income tax benefit and expense were primarily related to the United Kingdom operations. The difference between the statutory rate and the actual rate is primarily due to the valuation allowance related to the net deferred tax assets in the United States. |
Segment_Information
Segment Information | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Segment Information | ' | ||||||||||||||||
NOTE 11: Segment Information | |||||||||||||||||
The Company has two reportable segments: EIM and CAMRA. These segments are managed separately because the services provided by each segment require different technology and marketing strategies. | |||||||||||||||||
Electronic Invoice Management: EIM designs, develops and provides electronic invoice presentment and analysis software that enables internet-based customer self-care for wireline, wireless and convergent providers of telecommunications services. EIM software and services are used primarily by telecommunications services providers to enhance their customer relationships while reducing the providers operational expenses related to paper-based invoice delivery and customer support relating to billing inquiries. | |||||||||||||||||
Call Accounting Management and Recording: CAMRA designs, develops and provides software and services used by enterprise, governmental, institutional end users and managed and hosted customers of service providers to manage their telecommunications service and equipment usage and to analyze voice, video, and data usage, record and monitor communications and perform administrative and back office functions such as cost allocation or client bill back. These applications are commonly available in the market as enterprise-grade products. Customers typically purchase the CAMRA products when upgrading or acquiring a new enterprise communications platform. | |||||||||||||||||
Reconciling items for operating income (loss) in the table below represent corporate expenses, legal costs for patent enforcement and depreciation all of which are in the United States. | |||||||||||||||||
The accounting policies for segment reporting are the same as those described in Note 1 of the Notes to Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012. | |||||||||||||||||
Summarized financial information concerning the Company’s reportable segments for the nine and three months ended September 30, 2013 and 2012 is shown in the following tables. | |||||||||||||||||
For Nine Months Ended September 30, 2013 | |||||||||||||||||
Electronic | Call Accounting | Corporate | Consolidated | ||||||||||||||
Invoice | Management | Allocation | |||||||||||||||
Management | and Recording | ||||||||||||||||
Revenues | $ | 7,209,415 | $ | 4,200,096 | $ | 0 | $ | 11,409,511 | |||||||||
Gross profit (loss) Revenues less cost of products, excluding depreciation and amortization | 5,851,021 | 2,622,533 | 0 | 8,473,554 | |||||||||||||
Depreciation and amortization | 1,020,374 | 376,738 | 3,585 | 1,400,697 | |||||||||||||
Income (loss) from operations | 1,164,059 | (602,383 | ) | (1,306,941 | ) | (745,265 | ) | ||||||||||
Long-lived assets | 5,174,902 | 1,151,764 | 10,426 | 6,337,092 | |||||||||||||
For Nine Months Ended September 30, 2012 | |||||||||||||||||
Electronic | Call Accounting | Corporate | Consolidated | ||||||||||||||
Invoice | Management | Allocation | |||||||||||||||
Management | and Recording | ||||||||||||||||
Revenues | $ | 8,783,578 | $ | 3,990,788 | $ | 0 | $ | 12,774,366 | |||||||||
Gross profit (loss) Revenues less cost of products, excluding depreciation and amortization | 7,178,913 | 2,347,138 | 0 | 9,526,051 | |||||||||||||
Depreciation and amortization | 1,036,029 | 319,169 | 3,189 | 1,358,387 | |||||||||||||
Income (loss) from operations | 2,424,150 | (818,478 | ) | (784,926 | ) | 820,746 | |||||||||||
Long-lived assets | 5,822,389 | 913,123 | 15,164 | 6,750,676 | |||||||||||||
For Three Months Ended September 30, 2013 | |||||||||||||||||
Electronic | Call Accounting | Corporate | Consolidated | ||||||||||||||
Invoice | Management | Allocation | |||||||||||||||
Management | and Recording | ||||||||||||||||
Revenues | $ | 2,195,318 | $ | 1,444,891 | $ | 0 | $ | 3,640,209 | |||||||||
Gross profit (loss) Revenues less cost of products, excluding depreciation and amortization | 1,805,648 | 950,571 | 0 | 2,756,219 | |||||||||||||
Depreciation and amortization | 305,306 | 115,884 | 1,335 | 422,525 | |||||||||||||
Income (loss) from operations | 182,616 | (55,332 | ) | (313,684 | ) | (186,400 | ) | ||||||||||
Long-lived assets | 5,174,902 | 1,151,764 | 10,426 | 6,337,092 | |||||||||||||
For Three Months Ended September 30, 2012 | |||||||||||||||||
Electronic | Call Accounting | Corporate | Consolidated | ||||||||||||||
Invoice | Management | Allocation | |||||||||||||||
Management | and Recording | ||||||||||||||||
Revenues | $ | 2,718,053 | $ | 1,232,662 | $ | 0 | $ | 3,950,715 | |||||||||
Gross profit (loss) Revenues less cost of products, excluding depreciation and amortization | 2,244,775 | 759,914 | 0 | 3,004,689 | |||||||||||||
Depreciation and amortization | 352,919 | 107,495 | 1,087 | 461,501 | |||||||||||||
Income (loss) from operations | 639,778 | (248,620 | ) | (227,715 | ) | 163,443 | |||||||||||
Long-lived assets | 5,822,389 | 913,123 | 15,164 | 6,750,676 | |||||||||||||
The following table presents net revenues by geographic location. | |||||||||||||||||
For Nine Months Ended September 30, 2013 | |||||||||||||||||
United | United | Consolidated | |||||||||||||||
States | Kingdom | ||||||||||||||||
Revenues | $ | 2,660,824 | $ | 8,748,687 | $ | 11,409,511 | |||||||||||
Gross profit (Revenues less cost of products, excluding depreciation and amortization) | 1,800,585 | 6,672,969 | 8,473,554 | ||||||||||||||
Depreciation and amortization | 377,293 | 1,023,404 | 1,400,697 | ||||||||||||||
Income (loss) from operations | (1,994,664 | ) | 1,249,399 | (745,265 | ) | ||||||||||||
Long-lived assets | 5,438,785 | 898,307 | 6,337,092 | ||||||||||||||
For Nine Months Ended September 30, 2012 | |||||||||||||||||
United | United | Consolidated | |||||||||||||||
States | Kingdom | ||||||||||||||||
Revenues | $ | 2,600,483 | $ | 10,173,883 | $ | 12,774,366 | |||||||||||
Gross profit (Revenues less cost of products, excluding depreciation and amortization) | 1,797,974 | 7,728,077 | 9,526,051 | ||||||||||||||
Depreciation and amortization | 324,855 | 1,033,532 | 1,358,387 | ||||||||||||||
Income (loss) from operations | (1,229,728 | ) | 2,050,474 | 820,746 | |||||||||||||
Long-lived assets | 5,790,458 | 960,218 | 6,750,676 | ||||||||||||||
For Three Months Ended September 30, 2013 | |||||||||||||||||
United | United | Consolidated | |||||||||||||||
States | Kingdom | ||||||||||||||||
Revenues | $ | 903,645 | $ | 2,736,564 | $ | 3,640,209 | |||||||||||
Gross profit (Revenues less cost of products, excluding depreciation and amortization) | 624,976 | 2,131,243 | 2,756,219 | ||||||||||||||
Depreciation and amortization | 115,763 | 306,762 | 422,525 | ||||||||||||||
Income (loss) from operations | (503,206 | ) | 316,806 | (186,400 | ) | ||||||||||||
Long-lived assets | 5,438,785 | 898,307 | 6,337,092 | ||||||||||||||
For Three Months Ended September 30, 2012 | |||||||||||||||||
United | United | Consolidated | |||||||||||||||
States | Kingdom | ||||||||||||||||
Revenues | $ | 780,044 | $ | 3,170,671 | $ | 3,950,715 | |||||||||||
Gross profit (Revenues less cost of products, excluding depreciation and amortization) | 593,259 | 2,411,430 | 3,004,689 | ||||||||||||||
Depreciation and amortization | 108,791 | 352,710 | 461,501 | ||||||||||||||
Income (loss) from operations | (371,234 | ) | 534,677 | 163,443 | |||||||||||||
Long-lived assets | 5,790,458 | 960,218 | 6,750,676 |
Related_Party_Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2013 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
NOTE 12 –Related Party Transactions | |
On March 7, 2013, a proposal (the “Proposal”) was made by Fairford, Michael Reinarts who is the Chairman of the Company’s Board of Directors and John Birbeck who is the Company’s Chief Executive Officer, to purchase all of the outstanding shares of stock of the Company for a cash purchase price of $0.29 per share. On March 8, 2013, the Company’s Board of Directors formed a Special Committee to, among other things, evaluate and determine the Company’s response to the Proposal. | |
In October 2013, in order to supplement the Company’s liquidity, Fairford, Michael Reinarts and John Birbeck (the “Lenders”) agreed to advance to the Company up to $1,400,000. In connection with the advancement, the Company issued to the Lenders a promissory note, for the amount advanced bearing interest at 6.5% per annum. The promissory note expires on the earlier of (a) demand for payment on March 30, 2014 or thereafter or (b) May 31, 2014. All borrowings are collateralized by substantially all assets of the Company. As of November 1, 2013, the Lenders have advanced $700,000 under the promissory note. |
New_Accounting_Pronouncements_
New Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Changes And Error Corrections [Abstract] | ' |
Disclosures about Offsetting Assets and Liabilities | ' |
In January 2013, the FASB issued Accounting Standards Update (“ASU”) No. 2013-01, Balance Sheet (Topic 210), Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities. This update further clarified the guidance previously issued under ASU No. 2011-11, which required both gross and net presentation of offsetting assets and liabilities. The new requirements were effective retrospectively for fiscal years beginning on or after January 1, 2013, and for interim periods within those fiscal years. As the guidance impacted disclosure requirements only, the Company’s adoption of the guidance on January 1, 2013 did not have an impact on its results of operations, financial position or cash flows. | |
Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income | ' |
In February 2013, the FASB issued ASU No. 2013-02, Comprehensive Income (Topic 220), Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The guidance was issued in response to ASU No. 2011-05 and required disclosure of the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items of net income, if the amounts reclassified are required under U.S. GAAP to be reclassified in their entirety to net income in the same reporting period. For other amounts not required to be reclassified to net income in their entirety in the same reporting period, or when a portion of the amount is reclassified to a balance sheet account instead of directly to income or expense, a cross reference to the related footnote disclosures for additional information should be provided. The new requirements were effective prospectively for fiscal years beginning on or after December 15, 2012, and for interim periods within those fiscal years. As the guidance impacted disclosure requirements only, the Company’s adoption of the guidance on January 1, 2013 did not have an impact on its results of operations, financial position or cash flows. | |
Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries | ' |
In March 2013, the FASB issued ASU No. 2013-05, Foreign Currency Matters (Topic 830), Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity. This guidance clarifies the release of the cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a business within a foreign entity. The new requirements are effective prospectively for fiscal years beginning on or after December 15, 2013, and for interim periods within those fiscal years. The Company expects that the adoption of this guidance will not have a material impact on its results of operations, financial position or cash flows. | |
Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists | ' |
In July 2013, the FASB issued ASU 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. This guidance requires that a liability related to an unrecognized tax benefit be offset against a deferred tax asset for a net operating loss carryforward, a similar tax loss or a tax credit carryforward if certain criteria are met. The new requirements are effective for fiscal years beginning after December 15, 2013. The Company expects that the adoption of this guidance will not have a material impact on its results of operations, financial position or cash flows. |
Basic_and_Diluted_Net_Income_P1
Basic and Diluted Net Income Per Common Share (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Calculation of Basic and Diluted Earnings (Loss) Per Share | ' | ||||||||||||||||
Diluted earnings per share amounts are computed by dividing reported earnings available to common stockholders by weighted average common shares outstanding for the period giving effect to securities considered to be potentially dilutive common shares, such as stock options. | |||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Net income / (loss) | $ | (292,892 | ) | $ | 165,399 | $ | (1,196,599 | ) | $ | 548,952 | |||||||
Weighted average shares of common stock outstanding used to compute basic earnings per share | 29,039,021 | 29,038,021 | 29,038,673 | 29,038,021 | |||||||||||||
Additional common shares to be issued assuming exercise of stock options and stock warrants | 0 | 833,545 | 0 | 837,642 | |||||||||||||
Weighted average shares of common and common equivalent stock outstanding used to compute diluted earnings per share | 29,039,021 | 29,871,566 | 29,038,673 | 29,875,663 | |||||||||||||
Basic: | |||||||||||||||||
Net income / (loss) per share | $ | (0.01 | ) | $ | 0.01 | $ | (0.04 | ) | $ | 0.02 | |||||||
Weighted average common shares outstanding | 29,039,021 | 29,038,021 | 29,038,673 | 29,038,021 | |||||||||||||
Diluted: | |||||||||||||||||
Net income / (loss) per share | $ | (0.01 | ) | $ | 0.01 | $ | (0.04 | ) | $ | 0.02 | |||||||
Weighted average common and common equivalent shares outstanding | 29,039,021 | 29,871,566 | 29,038,673 | 29,875,663 | |||||||||||||
Stock_Based_Compensation_Table
Stock Based Compensation (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||||||
Information with Respect to Options | ' | ||||||||||||||||||||
Information with respect to options was as follows: | |||||||||||||||||||||
Options | Exercise | Weighted | |||||||||||||||||||
Shares | Price Range | Average | |||||||||||||||||||
Per Share | Exercise Price | ||||||||||||||||||||
Outstanding, January 1, 2013 | 5,691,350 | $ | 0.08–$0.40 | $ | 0.25 | ||||||||||||||||
Granted | 0 | 0 | 0 | ||||||||||||||||||
Exercised | (1,000 | ) | $ | 0.21 | $ | 0.21 | |||||||||||||||
Expired | (102,500 | ) | $ | 0.08–$0.225 | $ | 0.12 | |||||||||||||||
Outstanding, September 30, 2013 | 5,587,850 | $ | 0.08–$ 0.40 | $ | 0.26 | ||||||||||||||||
Summary of Options Exercisable | ' | ||||||||||||||||||||
The following table summarizes options exercisable at September 30, 2013: | |||||||||||||||||||||
Option | Exercise Price | Weighted | Aggregate | Weighted | |||||||||||||||||
Shares | Range | Average | Intrinsic | Remaining | |||||||||||||||||
Per Share | Exercise Price | Value | Contractual Term | ||||||||||||||||||
September 30, 2013 | 4,925,307 | $ | 0.08-$0.40 | $ | 0.26 | $ | 302,413 | 4.01 years | |||||||||||||
Summary of Non-Vested Options | ' | ||||||||||||||||||||
The following table summarizes non-vested options: | |||||||||||||||||||||
Option | |||||||||||||||||||||
Shares | |||||||||||||||||||||
1-Jan-13 | 1,050,048 | ||||||||||||||||||||
Granted | 0 | ||||||||||||||||||||
Expired | (18,334 | ) | |||||||||||||||||||
Vested | (369,171 | ) | |||||||||||||||||||
30-Sep-13 | 662,543 | ||||||||||||||||||||
Option Valuation Model Assumptions | ' | ||||||||||||||||||||
The fair value of each option award is estimated on the date of grant using a closed-form option valuation model (Black-Scholes-Merton formula) that uses the assumptions noted in the following table: | |||||||||||||||||||||
2012 | |||||||||||||||||||||
Risk-free interest rate | 0.38 | % | |||||||||||||||||||
Dividend yield | 0 | % | |||||||||||||||||||
Volatility factor | 239.36 | % | |||||||||||||||||||
Expected lives | 5 years |
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Financial Information Summarizing Reportable Segments | ' | ||||||||||||||||
Summarized financial information concerning the Company’s reportable segments for the nine and three months ended September 30, 2013 and 2012 is shown in the following tables. | |||||||||||||||||
For Nine Months Ended September 30, 2013 | |||||||||||||||||
Electronic | Call Accounting | Corporate | Consolidated | ||||||||||||||
Invoice | Management | Allocation | |||||||||||||||
Management | and Recording | ||||||||||||||||
Revenues | $ | 7,209,415 | $ | 4,200,096 | $ | 0 | $ | 11,409,511 | |||||||||
Gross profit (loss) Revenues less cost of products, excluding depreciation and amortization | 5,851,021 | 2,622,533 | 0 | 8,473,554 | |||||||||||||
Depreciation and amortization | 1,020,374 | 376,738 | 3,585 | 1,400,697 | |||||||||||||
Income (loss) from operations | 1,164,059 | (602,383 | ) | (1,306,941 | ) | (745,265 | ) | ||||||||||
Long-lived assets | 5,174,902 | 1,151,764 | 10,426 | 6,337,092 | |||||||||||||
For Nine Months Ended September 30, 2012 | |||||||||||||||||
Electronic | Call Accounting | Corporate | Consolidated | ||||||||||||||
Invoice | Management | Allocation | |||||||||||||||
Management | and Recording | ||||||||||||||||
Revenues | $ | 8,783,578 | $ | 3,990,788 | $ | 0 | $ | 12,774,366 | |||||||||
Gross profit (loss) Revenues less cost of products, excluding depreciation and amortization | 7,178,913 | 2,347,138 | 0 | 9,526,051 | |||||||||||||
Depreciation and amortization | 1,036,029 | 319,169 | 3,189 | 1,358,387 | |||||||||||||
Income (loss) from operations | 2,424,150 | (818,478 | ) | (784,926 | ) | 820,746 | |||||||||||
Long-lived assets | 5,822,389 | 913,123 | 15,164 | 6,750,676 | |||||||||||||
For Three Months Ended September 30, 2013 | |||||||||||||||||
Electronic | Call Accounting | Corporate | Consolidated | ||||||||||||||
Invoice | Management | Allocation | |||||||||||||||
Management | and Recording | ||||||||||||||||
Revenues | $ | 2,195,318 | $ | 1,444,891 | $ | 0 | $ | 3,640,209 | |||||||||
Gross profit (loss) Revenues less cost of products, excluding depreciation and amortization | 1,805,648 | 950,571 | 0 | 2,756,219 | |||||||||||||
Depreciation and amortization | 305,306 | 115,884 | 1,335 | 422,525 | |||||||||||||
Income (loss) from operations | 182,616 | (55,332 | ) | (313,684 | ) | (186,400 | ) | ||||||||||
Long-lived assets | 5,174,902 | 1,151,764 | 10,426 | 6,337,092 | |||||||||||||
For Three Months Ended September 30, 2012 | |||||||||||||||||
Electronic | Call Accounting | Corporate | Consolidated | ||||||||||||||
Invoice | Management | Allocation | |||||||||||||||
Management | and Recording | ||||||||||||||||
Revenues | $ | 2,718,053 | $ | 1,232,662 | $ | 0 | $ | 3,950,715 | |||||||||
Gross profit (loss) Revenues less cost of products, excluding depreciation and amortization | 2,244,775 | 759,914 | 0 | 3,004,689 | |||||||||||||
Depreciation and amortization | 352,919 | 107,495 | 1,087 | 461,501 | |||||||||||||
Income (loss) from operations | 639,778 | (248,620 | ) | (227,715 | ) | 163,443 | |||||||||||
Long-lived assets | 5,822,389 | 913,123 | 15,164 | 6,750,676 | |||||||||||||
Net Revenues by Geographic Location | ' | ||||||||||||||||
The following table presents net revenues by geographic location. | |||||||||||||||||
For Nine Months Ended September 30, 2013 | |||||||||||||||||
United | United | Consolidated | |||||||||||||||
States | Kingdom | ||||||||||||||||
Revenues | $ | 2,660,824 | $ | 8,748,687 | $ | 11,409,511 | |||||||||||
Gross profit (Revenues less cost of products, excluding depreciation and amortization) | 1,800,585 | 6,672,969 | 8,473,554 | ||||||||||||||
Depreciation and amortization | 377,293 | 1,023,404 | 1,400,697 | ||||||||||||||
Income (loss) from operations | (1,994,664 | ) | 1,249,399 | (745,265 | ) | ||||||||||||
Long-lived assets | 5,438,785 | 898,307 | 6,337,092 | ||||||||||||||
For Nine Months Ended September 30, 2012 | |||||||||||||||||
United | United | Consolidated | |||||||||||||||
States | Kingdom | ||||||||||||||||
Revenues | $ | 2,600,483 | $ | 10,173,883 | $ | 12,774,366 | |||||||||||
Gross profit (Revenues less cost of products, excluding depreciation and amortization) | 1,797,974 | 7,728,077 | 9,526,051 | ||||||||||||||
Depreciation and amortization | 324,855 | 1,033,532 | 1,358,387 | ||||||||||||||
Income (loss) from operations | (1,229,728 | ) | 2,050,474 | 820,746 | |||||||||||||
Long-lived assets | 5,790,458 | 960,218 | 6,750,676 | ||||||||||||||
For Three Months Ended September 30, 2013 | |||||||||||||||||
United | United | Consolidated | |||||||||||||||
States | Kingdom | ||||||||||||||||
Revenues | $ | 903,645 | $ | 2,736,564 | $ | 3,640,209 | |||||||||||
Gross profit (Revenues less cost of products, excluding depreciation and amortization) | 624,976 | 2,131,243 | 2,756,219 | ||||||||||||||
Depreciation and amortization | 115,763 | 306,762 | 422,525 | ||||||||||||||
Income (loss) from operations | (503,206 | ) | 316,806 | (186,400 | ) | ||||||||||||
Long-lived assets | 5,438,785 | 898,307 | 6,337,092 | ||||||||||||||
For Three Months Ended September 30, 2012 | |||||||||||||||||
United | United | Consolidated | |||||||||||||||
States | Kingdom | ||||||||||||||||
Revenues | $ | 780,044 | $ | 3,170,671 | $ | 3,950,715 | |||||||||||
Gross profit (Revenues less cost of products, excluding depreciation and amortization) | 593,259 | 2,411,430 | 3,004,689 | ||||||||||||||
Depreciation and amortization | 108,791 | 352,710 | 461,501 | ||||||||||||||
Income (loss) from operations | (371,234 | ) | 534,677 | 163,443 | |||||||||||||
Long-lived assets | 5,790,458 | 960,218 | 6,750,676 |
Business_and_Basis_of_Presenta1
Business and Basis of Presentation - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Segment | ||||
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ' | ' | ' | ' |
Number of business segment | ' | ' | 2 | ' |
Amortization expense of developed software | $145,019 | $190,362 | $600,875 | $564,319 |
Supplemental_Schedule_of_NonCa1
Supplemental Schedule of Non-Cash Investing and Financing Activities - Additional Information (Detail) (USD $) | 1 Months Ended | 9 Months Ended | |
31-May-13 | Sep. 30, 2013 | Sep. 30, 2012 | |
Supplemental Cash Flow Elements [Abstract] | ' | ' | ' |
Current year tax paid | ' | $0 | $182,000 |
Prior period income tax paid | ' | 492,000 | 268,000 |
Payment plan agreement | 166,600 | ' | ' |
Quarterly payments | 'Twelve quarterly payments | ' | ' |
Amount of payments | $15,341 | ' | ' |
Date of payments | 1-Sep-13 | ' | ' |
Interest rate on payment plan | 6.30% | ' | ' |
Debt_Obligations_and_Liquidity1
Debt Obligations and Liquidity - Additional Information (Detail) (USD $) | 31-May-13 | Oct. 31, 2013 | Oct. 31, 2013 | Nov. 01, 2013 | Oct. 31, 2013 |
Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | ||
Promissory Note [Member] | Promissory Note [Member] | Fairford Holdings Limited [Member] | |||
Maximum [Member] | |||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' |
Loan received | ' | ' | ' | ' | $1,400,000 |
Interest rate of amount advanced | 6.30% | 6.50% | 6.50% | ' | ' |
Expiry date of promissory note, description | ' | ' | 'The promissory note expires on the earlier of (a) demand for payment on March 30, 2014 or thereafter or (b) May 31, 2014 | ' | ' |
Amount of advanced received from lenders | $166,600 | ' | ' | $700,000 | ' |
Basic_and_Diluted_Net_Income_P2
Basic and Diluted Net Income Per Common Share - Calculation of Basic and Diluted Earnings (Loss) Per Share (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Net income / (loss) | ($292,892) | $165,399 | ($1,196,599) | $548,952 |
Weighted average shares of common stock outstanding used to compute basic earnings per share | 29,039,021 | 29,038,021 | 29,038,673 | 29,038,021 |
Additional common shares to be issued assuming exercise of stock options and stock warrants | 0 | 833,545 | 0 | 837,642 |
Weighted average shares of common and common equivalent stock outstanding used to compute diluted earnings per share | 29,039,021 | 29,871,566 | 29,038,673 | 29,875,663 |
Basic: | ' | ' | ' | ' |
Net income / (loss) per share | ($0.01) | $0.01 | ($0.04) | $0.02 |
Weighted average common shares outstanding | 29,039,021 | 29,038,021 | 29,038,673 | 29,038,021 |
Diluted: | ' | ' | ' | ' |
Net income / (loss) per share | ($0.01) | $0.01 | ($0.04) | $0.02 |
Weighted average common and common equivalent shares outstanding | 29,039,021 | 29,871,566 | 29,038,673 | 29,875,663 |
Stock_Based_Compensation_Addit
Stock Based Compensation - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2002 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2009 | Dec. 31, 2009 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
USD ($) | USD ($) | USD ($) | USD ($) | Plan and Stock Incentive Plan Options [Member] | Outside Plan Stock Options [Member] | Common Class A [Member] | Common Class A [Member] | Common Class A [Member] | Common Class A [Member] | Common Class A [Member] | Common Class A [Member] | Common Class A [Member] | Common Class A [Member] | Minimum [Member] | Maximum [Member] | |||
USD ($) | Plan and Stock Incentive Plan Options [Member] | Outside Plan Stock Options [Member] | Original Warrant [Member] | Fairford Holdings Limited [Member] | Fairford Holdings Limited [Member] | Fairford Holdings Limited [Member] | Fairford Scandinavia [Member] | |||||||||||
USD ($) | SEK | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise period of stock options granted under the Plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | '5 years |
Additional shares granted | ' | ' | ' | ' | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum number of share granted under Stock Incentive Plan | ' | ' | ' | ' | ' | ' | ' | ' | 1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share reserved for award granted | ' | ' | ' | ' | ' | ' | ' | ' | 6,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share available for grant | 1,917,400 | ' | 1,917,400 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum period after which no stock option granted under the Stock Incentive Plan | ' | ' | 'later than ten years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options outstanding to purchase common stock | 5,587,850 | ' | 5,587,850 | ' | ' | 5,691,350 | 5,337,850 | 250,000 | 5,587,850 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options exercisable to purchase common stock | 4,925,307 | ' | 4,925,307 | ' | ' | ' | ' | ' | ' | 4,675,307 | 250,000 | ' | ' | ' | ' | ' | ' | ' |
Future compensation costs related to non-vested options | ' | ' | $103,652 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Future costs recognized weighted average | ' | ' | '2 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Consideration for securing issuance | ' | ' | 2,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares under warrant | ' | ' | ' | ' | ' | ' | ' | ' | 419,495 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise price of warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.34 | ' | ' | ' | ' | ' | ' |
Additional warrant purchase | ' | ' | ' | ' | ' | ' | ' | ' | 620,675 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise price of additional warrant | ' | ' | ' | ' | ' | ' | ' | ' | $0.22 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Securities sold | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 355,099 | 355,099 | ' | ' | ' | ' |
Price of securities sold | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.39 | 2.80362 | ' | ' | ' | ' |
Percentage of Company's outstanding Class A common stock beneficially owned by Fairford | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 63.70% | ' | ' | ' |
Number of warrants to purchase common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,040,170 | ' | ' |
Portion of stock-based compensation included in selling, general and administrative expense | $15,528 | $19,065 | $46,586 | $39,227 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock_Based_Compensation_Infor
Stock Based Compensation - Information with Respect to Options (Detail) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' |
Options Shares, Outstanding, Beginning balance | 5,691,350 |
Options Shares, Granted | 0 |
Options Shares, Exercised | -1,000 |
Options Shares, Expired | -102,500 |
Options Shares, Outstanding, Ending balance | 5,587,850 |
Exercise Price Range Per Share, Lower range limit, Outstanding, Beginning balance | $0.08 |
Exercise Price Range Per Share, Lower range limit, Granted | ' |
Exercise Price Range Per Share, Lower range limit, Exercised | ' |
Exercise Price Range Per Share, Lower range limit, Expired | $0.08 |
Exercise Price Range Per Share, Lower range limit, Outstanding, Ending balance | $0.08 |
Exercise Price Range Per Share, Upper range limit, Outstanding, Beginning balance | $0.40 |
Exercise Price Range Per Share, Upper range limit, Granted | $0 |
Exercise Price Range Per Share, Upper range limit, Exercised | $0.21 |
Exercise Price Range Per Share, Upper range limit, Expired | $0.23 |
Exercise Price Range Per Share, Upper range limit, Outstanding, Ending balance | $0.40 |
Weighted Average Exercise Price, Outstanding, Beginning balance | $0.25 |
Weighted Average Exercise Price, Granted | $0 |
Weighted Average Exercise Price, Exercised | $0.21 |
Weighted Average Exercise Price, Expired | $0.12 |
Weighted Average Exercise Price, Outstanding, Ending balance | $0.26 |
Stock_Based_Compensation_Summa
Stock Based Compensation - Summary of Options Exercisable (Detail) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' |
Option Shares | 4,925,307 |
Exercise Price Range Per Share, Lower range limit | $0.08 |
Exercise Price Range Per Share, Upper range limit | $0.40 |
Weighted Average Exercise Price | $0.26 |
Aggregate Intrinsic Value | $302,413 |
Weighted Remaining Contractual Term | '4 years 4 days |
Stock_Based_Compensation_Summa1
Stock Based Compensation - Summary of Non-Vested Options (Detail) | 9 Months Ended |
Sep. 30, 2013 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' |
Outstanding, January 1, 2013 | 1,050,048 |
Granted | 0 |
Expired | -18,334 |
Vested | -369,171 |
Outstanding, September 30, 2013 | 662,543 |
Stock_Based_Compensation_Optio
Stock Based Compensation - Option Valuation Model Assumptions (Detail) | 12 Months Ended |
Dec. 31, 2012 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' |
Risk-free interest rate | 0.38% |
Dividend yield | 0.00% |
Volatility factor | 239.36% |
Expected lives | '5 years |
Contingencies_Additional_Infor
Contingencies - Additional Information (Detail) (USD $) | 1 Months Ended | 9 Months Ended |
Oct. 30, 2012 | Sep. 30, 2013 | |
Commitments And Contingencies Disclosure [Abstract] | ' | ' |
Litigation cost payable to Quest Corporation | $250,000 | ' |
Estimated possible loss | ' | 'The Company believes a range of possible loss, which cannot be reasonably estimated at this time, is between zero and the amount of the judgment. |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Unrecognized tax benefit | $138,655 | $115,742 | $138,655 | $115,742 |
Amounts accrued for interest and penalties | 0 | ' | 0 | ' |
Income tax expenses | $105,223 | ($1,993) | $452,435 | $277,780 |
Segment_Information_Additional
Segment Information - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2013 | |
Segment | |
Segment Reporting [Abstract] | ' |
Number of reportable business segments | 2 |
Segment_Information_Financial_
Segment Information - Financial Information Summarizing Reportable Segments (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues | $3,640,209 | $3,950,715 | $11,409,511 | $12,774,366 |
Gross profit (loss) Revenues less cost of products, excluding depreciation and amortization | 2,756,219 | 3,004,689 | 8,473,554 | 9,526,051 |
Depreciation and amortization | 422,525 | 461,501 | 1,400,697 | 1,358,387 |
Income (loss) from operations | -186,400 | 163,443 | -745,265 | 820,746 |
Long-lived assets | 6,337,092 | 6,750,676 | 6,337,092 | 6,750,676 |
Electronic Invoice Management [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues | 2,195,318 | 2,718,053 | 7,209,415 | 8,783,578 |
Gross profit (loss) Revenues less cost of products, excluding depreciation and amortization | 1,805,648 | 2,244,775 | 5,851,021 | 7,178,913 |
Depreciation and amortization | 305,306 | 352,919 | 1,020,374 | 1,036,029 |
Income (loss) from operations | 182,616 | 639,778 | 1,164,059 | 2,424,150 |
Long-lived assets | 5,174,902 | 5,822,389 | 5,174,902 | 5,822,389 |
Call Accounting Management and Recording [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues | 1,444,891 | 1,232,662 | 4,200,096 | 3,990,788 |
Gross profit (loss) Revenues less cost of products, excluding depreciation and amortization | 950,571 | 759,914 | 2,622,533 | 2,347,138 |
Depreciation and amortization | 115,884 | 107,495 | 376,738 | 319,169 |
Income (loss) from operations | -55,332 | -248,620 | -602,383 | -818,478 |
Long-lived assets | 1,151,764 | 913,123 | 1,151,764 | 913,123 |
Corporate Allocation [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues | 0 | 0 | 0 | 0 |
Gross profit (loss) Revenues less cost of products, excluding depreciation and amortization | 0 | 0 | 0 | 0 |
Depreciation and amortization | 1,335 | 1,087 | 3,585 | 3,189 |
Income (loss) from operations | -313,684 | -227,715 | -1,306,941 | -784,926 |
Long-lived assets | $10,426 | $15,164 | $10,426 | $15,164 |
Segment_Information_Net_Revenu
Segment Information - Net Revenues by Geographic Location (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues | $3,640,209 | $3,950,715 | $11,409,511 | $12,774,366 |
Gross profit (Revenues less cost of products, excluding depreciation and amortization) | 2,756,219 | 3,004,689 | 8,473,554 | 9,526,051 |
Depreciation and amortization | 422,525 | 461,501 | 1,400,697 | 1,358,387 |
Income (loss) from operations | -186,400 | 163,443 | -745,265 | 820,746 |
Long-lived assets | 6,337,092 | 6,750,676 | 6,337,092 | 6,750,676 |
United States [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues | 903,645 | 780,044 | 2,660,824 | 2,600,483 |
Gross profit (Revenues less cost of products, excluding depreciation and amortization) | 624,976 | 593,259 | 1,800,585 | 1,797,974 |
Depreciation and amortization | 115,763 | 108,791 | 377,293 | 324,855 |
Income (loss) from operations | -503,206 | -371,234 | -1,994,664 | -1,229,728 |
Long-lived assets | 5,438,785 | 5,790,458 | 5,438,785 | 5,790,458 |
United Kingdom [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues | 2,736,564 | 3,170,671 | 8,748,687 | 10,173,883 |
Gross profit (Revenues less cost of products, excluding depreciation and amortization) | 2,131,243 | 2,411,430 | 6,672,969 | 7,728,077 |
Depreciation and amortization | 306,762 | 352,710 | 1,023,404 | 1,033,532 |
Income (loss) from operations | 316,806 | 534,677 | 1,249,399 | 2,050,474 |
Long-lived assets | $898,307 | $960,218 | $898,307 | $960,218 |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (USD $) | 31-May-13 | Mar. 07, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | Nov. 01, 2013 | Oct. 31, 2013 |
Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | |||
Promissory Note [Member] | Promissory Note [Member] | Fairford Holdings Limited [Member] | ||||
Maximum [Member] | ||||||
Cash purchase price payable under proposal made by related party to purchase common stock | ' | $0.29 | ' | ' | ' | ' |
Loan received | ' | ' | ' | ' | ' | $1,400,000 |
Interest rate of amount advanced | 6.30% | ' | 6.50% | 6.50% | ' | ' |
Amount of advanced received from lenders | $166,600 | ' | ' | ' | $700,000 | ' |
Expiry date of promissory note, description | ' | ' | ' | 'The promissory note expires on the earlier of (a) demand for payment on March 30, 2014 or thereafter or (b) May 31, 2014 | ' | ' |