Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 12, 2015 | Jun. 30, 2014 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | CTIG | ||
Entity Registrant Name | CTI GROUP HOLDINGS INC | ||
Entity Central Index Key | 355627 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Common Stock, Shares Outstanding | 29,248,687 | ||
Entity Public Float | $3,137,033 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
ASSETS | ||
Cash and cash equivalents | $5,278,476 | $1,271,514 |
Trade accounts receivable, less allowance for doubtful accounts of $66,706 and $54,040, in 2014 and 2013, respectively | 3,577,866 | 3,236,772 |
Prepaid expenses | 368,965 | 291,854 |
Other current assets | 243,861 | 287,123 |
Total current assets | 9,469,168 | 5,087,263 |
Property, equipment, and software, net | 2,280,493 | 2,160,592 |
Intangible assets, net | 470,566 | 1,149,738 |
Goodwill | 2,769,589 | 2,769,589 |
Other assets | 29,218 | 152,441 |
Total assets | 15,019,034 | 11,319,623 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Accounts payable | 244,335 | 205,005 |
Accrued expenses | 1,227,101 | 1,024,988 |
Accrued wages and other compensation | 633,761 | 372,634 |
Income tax payable | 635,980 | 681,136 |
Deferred tax liability | 191,731 | 81,096 |
Deferred revenue | 4,250,433 | 2,538,977 |
Note to shareholders | 1,409,549 | |
Notes payable | 57,522 | 54,562 |
Total current liabilities | 7,240,863 | 6,367,947 |
Lease incentive - long term | 241,276 | 58,542 |
Deferred revenue - long term | 799,559 | 266,615 |
Deferred tax liability - long term | 45,721 | 312,173 |
Note payable - long term | 30,138 | 87,202 |
Total liabilities | 8,357,557 | 7,092,479 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Class A common stock, par value $.01; 47,166,666 shares authorized; 29,388,937 and 29,352,271 issued at December 31, 2014 and 2013, respectively | 293,889 | 293,523 |
Additional paid-in capital | 26,339,410 | 26,213,734 |
Accumulated deficit | -20,203,616 | -22,445,810 |
Accumulated other comprehensive income | 423,937 | 357,840 |
Treasury stock, 140,250 shares Class A common stock at December 31, 2014 and 2013 at cost | -192,143 | -192,143 |
Total stockholders' equity | 6,661,477 | 4,227,144 |
Total liabilities and stockholders' equity | $15,019,034 | $11,319,623 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts for trade accounts receivable | $66,706 | $54,040 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 47,166,666 | 47,166,666 |
Common stock, shares issued | 29,388,937 | 29,352,271 |
Treasury stock, shares | 140,250 | 140,250 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues: | ||
Software sales, service fee and license fee | $18,298,569 | $15,482,996 |
Cost and expenses: | ||
Costs of products and services, excluding depreciation and amortization | 4,300,944 | 3,793,529 |
Selling, general and administration | 7,763,209 | 7,593,310 |
Research and development | 3,055,046 | 2,881,551 |
Depreciation and amortization | 1,877,872 | 1,835,692 |
Total costs and expenses | 16,997,071 | 16,104,082 |
Income / (loss) from operations | 1,301,498 | -621,086 |
Other (income) / expense: | ||
Interest expense | 35,923 | 9,410 |
Other income | -1,344,749 | |
Income / (loss) before income taxes | 2,610,324 | -630,496 |
Tax expense | 368,130 | 472,314 |
Net income / (loss) | 2,242,194 | -1,102,810 |
Other comprehensive income / (loss) | ||
Foreign currency translation adjustment | 66,097 | -26,087 |
Comprehensive income / (loss) | $2,308,291 | ($1,128,897) |
Basic net income / (loss) per common share | $0.08 | ($0.04) |
Diluted net income / (loss) per common share | $0.07 | ($0.04) |
Basic weighted average common shares outstanding | 29,216,185 | 29,068,483 |
Diluted weighted average common shares outstanding | 31,689,083 | 29,068,483 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows provided by (used for) operating activities: | ||
Net income / (loss) | $2,242,194 | ($1,102,810) |
Adjustments to reconcile net income / (loss) to cash provided by (used for) operating activities: | ||
Depreciation and amortization | 1,877,872 | 1,835,692 |
Provision for doubtful accounts | 16,327 | 1,118 |
Deferred income taxes | -138,526 | -135,803 |
Stock option grant expense | 121,418 | 61,264 |
Rent incentive benefit | 274,175 | -44,551 |
Changes in operating activities: | ||
Trade accounts receivables | -526,593 | 2,804 |
Prepaid expenses | -83,240 | 160,074 |
Other assets | 166,420 | 206,234 |
Accounts payable | 46,461 | -222,054 |
Accrued expenses, wages and other compensation | 441,658 | 40,036 |
Deferred revenue | 2,481,574 | -1,844,604 |
Income taxes payable / refundable | -5,536 | -56,942 |
Cash provided by (used for) operating activities | 6,914,204 | -1,099,542 |
Cash flows used in investing activities: | ||
Additions to property, equipment, and software | -1,307,208 | -1,281,802 |
Cash used in investing activities | -1,307,208 | -1,281,802 |
Cash flows provided by financing activities: | ||
Exercise of stock options | 4,625 | 36,540 |
Repayment of vendor financing | -54,105 | -24,835 |
Note to shareholders | -1,400,000 | 1,400,000 |
Cash provided by (paid for) financing activities | -1,449,480 | 1,411,705 |
Effect of foreign currency exchange rates on cash and cash equivalents | -150,554 | -104,237 |
Increase (decrease) in cash and cash equivalents | 4,006,962 | -1,073,876 |
Cash and cash equivalents, beginning of year | 1,271,514 | 2,345,390 |
Cash and cash equivalents, end of year | $5,278,476 | $1,271,514 |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity (USD $) | Total | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] | Class A Common Stock [Member] |
Beginning Balance at Dec. 31, 2012 | $5,258,237 | $26,117,670 | ($21,343,000) | $383,927 | ($192,143) | $291,783 |
Beginning Balance, Share at Dec. 31, 2012 | 29,178,271 | |||||
Net income / (loss) | -1,102,810 | -1,102,810 | ||||
Foreign currency translation Adjustments | -26,087 | -26,087 | ||||
Stock options exercised | 36,540 | 34,800 | 1,740 | |||
Stock options exercised, share | 174,000 | |||||
Stock option expense | 61,264 | 61,264 | ||||
Ending Balance at Dec. 31, 2013 | 4,227,144 | 26,213,734 | -22,445,810 | 357,840 | -192,143 | 293,523 |
Ending Balance, Share at Dec. 31, 2013 | 29,352,271 | |||||
Net income / (loss) | 2,242,194 | 2,242,194 | ||||
Foreign currency translation Adjustments | 66,097 | 66,097 | ||||
Stock options exercised | 4,624 | 4,258 | 366 | |||
Stock options exercised, share | 36,666 | |||||
Stock option expense | 121,418 | 121,418 | ||||
Ending Balance at Dec. 31, 2014 | $6,661,477 | $26,339,410 | ($20,203,616) | $423,937 | ($192,143) | $293,889 |
Ending Balance, Share at Dec. 31, 2014 | 29,388,937 |
Description_of_Business_and_Su
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Accounting Policies [Abstract] | |||||||||
Description of Business and Summary of Significant Accounting Policies | NOTE 1 – DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||
BUSINESS: CTI Group (Holdings) Inc. and its wholly-owned subsidiaries (the “Company” or “CTI”) design, develop, market and support billing and data management software and services. The Company operates in two business segments: Electronic Invoice Management and Call Accounting Management and Recording. The majority of the Company’s business is in North America and Europe. | |||||||||
The Company’s future operations involve a number of risks and uncertainties. Factors that could affect future operating results and cause actual results to vary from historical results include, but are not limited to: adverse economic conditions, risks associated with doing business outside the United States, significant foreign currency fluctuations, impairments may be recorded on intangibles, loss of its significant customers, inability to enhance existing products and services to meet the evolving needs of customers, the Company’s inability to compete successfully, the Company’s inability to successfully enter new markets, the Company’s inability to maintain an effective system of internal controls, control of the Company’s stock is concentrated among directors and officers, the Company is subject to penny stock rules which may adversely affect trading of the Company’s Class A common stock, and there is not presently an active market for the Company’s Class A common stock. | |||||||||
BASIS OF PRESENTATION: The consolidated financial statements include the accounts of the Company and its subsidiaries, after elimination of all significant intercompany accounts and transactions. The consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). | |||||||||
The Company follows accounting standards set by the Financial Accounting Standards Board (“FASB”). The FASB establishes accounting principles generally accepted in the United States (“GAAP”) that the Company follows. Rules and interpretive releases of the Securities and Exchange Commission (“SEC”) under authority of federal securities laws are also sources of authoritative GAAP for SEC registrants, which the Company is required to follow. References to GAAP issued by the FASB in these footnotes are to the FASB Accounting Standards Codification (“ASC”), which serves as a single source of authoritative non-SEC accounting and reporting standards to be applied by nongovernmental entities. | |||||||||
FOREIGN CURRENCY TRANSLATION: The consolidated financial statements include the accounts of the Company’s wholly owned United Kingdom-based subsidiaries. The financial statements of the Company’s foreign subsidiaries have been included in the consolidated financial statements and have been translated to U.S. dollars in accordance with accounting guidance on foreign currency translation. Assets and liabilities are translated at current rates in effect at the consolidated balance sheet date and stockholders’ equity is translated at historical exchange rates. Revenue and expenses are translated at the average exchange rate for the applicable period. Any resulting translation adjustments are made directly to accumulated other comprehensive income. Included in selling, general and administrative expenses is a transaction gain of approximately $8,000 for the year ended December 31, 2014 and a transaction loss of approximately $60,000 for the year ended December 31, 2013. | |||||||||
CASH AND CASH EQUIVALENTS: Cash and cash equivalents include the cash on hand, demand deposits and highly liquid investments. The Company considers all highly liquid investments, with maturity of three months or less, to be cash equivalents. | |||||||||
ADVERTISING COSTS: The Company expenses advertising costs as incurred. For the years ended December 31, 2014 and 2013, advertising expense was $3,175 and $1,275, respectively. | |||||||||
USE OF ESTIMATES: The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Accordingly, actual results could differ from those estimates. Estimates utilized by the Company include the determination of the collectibility of receivables, valuation of stock options, recoverability and/or impairment of goodwill and intangible assets, depreciation and amortization, accrued compensation and other liabilities, commitments and contingencies, valuation of tax asset on net operating losses in the United States, and capitalization and impairment of computer software development costs. | |||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS: The Company’s financial instruments consist primarily of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses, and notes payable. At December 31, 2014 and 2013, the book values of these financial instruments are considered to be representative of their respective fair values due to the short maturity of these instruments. | |||||||||
PROPERTY AND EQUIPMENT: Property and equipment are stated at cost. Depreciation and amortization are calculated on a straight-line basis over the estimated useful lives of the assets. Furniture, fixtures and equipment are depreciated over the estimated useful lives of three to five years. Leasehold improvements are amortized over the period of the lease or the useful lives of the improvements, whichever is shorter. All maintenance and repair costs are charged to operations as incurred. | |||||||||
COMPUTER SOFTWARE: Expenditures for producing product masters incurred subsequent to establishing technological feasibility are capitalized and are amortized on a product-by-product basis for three years. The amortization is computed using the greater of (a) the straight-line method over the estimated economic life of the product or (b) the ratio that the current gross revenue for the products bear to the total current and anticipated future gross revenue of the products. The accounting guidance requires the periodic evaluation of the net realizable value of capitalized computer software costs. The excess of any unamortized computer software costs over its related net realizable value at a balance sheet date shall be written down. See Note 4 – Property, Equipment and Software Development Costs. The Company capitalized $935,808 and $1,093,776 for the years ended December 31, 2014 and 2013, respectively, in costs related to its software development. The amortization expense for developed software which relates to cost of sales was $775,503 and $734,369 for the years ended December 31, 2014 and 2013, respectively. | |||||||||
GOODWILL AND INTANGIBLE ASSETS: The Company considers the goodwill and related intangible assets related to CTI Billing Solutions Limited to be the premium the Company paid for CTI Billing Solutions Limited. For accounting purposes, these assets are maintained at the corporate level and the Company considers the functional currency with respect to these assets the U.S. dollar. Goodwill is tested for impairment on an annual basis each October and between annual tests in certain circumstances, and written down when impaired. The Company did not record goodwill impairments in 2014 and 2013. An impairment charge is recognized when the fair value of the asset is less than its carrying amount. The Company’s fair value was determined using discounted cash flows and other market-related valuation models. Certain estimates and judgments are required in the application of the fair value models. Purchased intangible assets other than goodwill are amortized on a straight line basis over their useful lives unless these lives are determined to be indefinite. Purchased intangible assets are carried at cost, less accumulated amortization. Amortization is computed over the estimated useful lives of the respective assets, generally 3-15 years. Intangible assets consist of patents, purchased technology, trademarks and trade names, and customer lists. | |||||||||
LONG-LIVED ASSETS: The Company reviews the recoverability of the carrying value of its long-lived assets, including intangible assets with definite lives using the methodology prescribed in accounting guidance for the impairment or disposal of long-lived assets. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. When such events occur, the Company compares the carrying amount of the assets to the undiscounted expected future cash flows. If this comparison indicates there is impairment, the amount of the impairment is typically calculated using discounted expected future cash flows. The Company did not record any impairments in 2014 or 2013. | |||||||||
REVENUE RECOGNITION: The Company’s revenue recognition policy is consistent with the requirements set forth in accounting guidance for revenue recognition. In general, the Company records revenue when it is realized, or realizable, and earned. Revenues from software licenses are recognized upon shipment, delivery or customer acceptance of the software, based on the substance of the arrangement or as defined in the sales agreement provided there are no significant remaining vendor obligations to be fulfilled and collectibility is reasonably assured. Software sales revenue is generated from licensing software to new customers and from licensing additional users and new applications to existing customers. | |||||||||
The Company maintains reserves for probable credit losses. The Company analyzes the accounts receivable aging and provides a percentage against receivables based on the aging to calculate the allowance for doubtful accounts. The Company will periodically review the percentage used in the calculation of the allowance for doubtful accounts to ensure that it is reasonable based on historical collection rates. | |||||||||
The following is a rollforward of the allowance for doubtful accounts | |||||||||
Balance as of January 1, 2013 | $ | 97,704 | |||||||
Provision | 1,118 | ||||||||
Bad debt write-off | (49,626 | ) | |||||||
Recovery of previously written-off accounts | — | ||||||||
Exchange rate fluctuation | 4,844 | ||||||||
Balance as of December 31, 2013 | $ | 54,040 | |||||||
Provision | 16,327 | ||||||||
Bad debt write-off | (808 | ) | |||||||
Recovery of previously written-off accounts | — | ||||||||
Exchange rate fluctuation | (2,853 | ) | |||||||
Balance as of December 31, 2014 | $ | 66,706 | |||||||
The Company’s sales arrangements typically include services in addition to software. Service revenues are generated from support and maintenance, processing, training, consulting, and customization services. For sales arrangements that include bundled software and services, the Company accounts for any undelivered service offering as a separate element of a multiple-element arrangement. Amounts deferred for services are determined based upon vendor-specific objective evidence of the fair value of the elements as prescribed in accounting guidance for software revenue recognition. Support and maintenance revenues are recognized on a straight-line basis over the term of the agreement. Revenues from processing, training, consulting, and customization are recognized as provided to customers. If the services are essential to the functionality of the software, revenue from the software component is deferred until the essential service is complete. | |||||||||
If an arrangement to deliver software or a software system, either alone or together with other products or services, requires significant production, modification, or customization of software, the service element does not meet the criteria for separate accounting. If the criteria for separate accounting are not met, the entire arrangement is accounted for in conformity with guidance related to long-term construction type contracts. The Company carefully evaluates the circumstances surrounding the implementations to determine whether the percentage-of-completion method or the completed-contract method should be used. Most implementations relate to the Company’s products and are completed in less than 30 days once the work begins. The Company uses the completed-contract method on contracts that will be completed within 30 days since it produces a result similar to the percentage-of-completion method. On contracts that will take over 30 days to complete, the Company uses the percentage-of-completion method of contract accounting. | |||||||||
STOCK BASED COMPENSATION: Under accounting guidance on share-based payment, the Company recognizes the cost of employee services received in exchange for awards of equity instruments, such as stock options and restricted stock, based on the fair value of those awards at the date of grant. | |||||||||
INCOME TAXES: The Company accounts for income taxes following the accounting guidance for accounting for income taxes, which requires recording income taxes under the asset and liability method of accounting for income taxes. Under the asset and liability method, deferred income taxes are recognized for the tax consequences of “temporary differences” by applying enacted statutory tax rates applicable to future years to differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recorded based on a determination of the ultimate realizability of net deferred tax assets. Prior to October 1, 2013, the Company considered its cumulative earnings related to non-U.S. | |||||||||
subsidiaries to be permanently reinvested, however, due to the Company transferring cash from its non-U.S. subsidiaries to the US, in both 2012 and 2013, the Company no longer considers earnings related to non-U.S. subsidiaries to be permanently reinvested. See Note 7 of the Notes to Consolidated Financial Statements. | |||||||||
Uncertain income tax positions are recognized 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. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. | |||||||||
BASIC AND DILUTED INCOME / (LOSS) PER COMMON SHARE: Net income (loss) per common share is computed in accordance with accounting guidance on earnings per share. Basic earnings (loss) per share is computed by dividing reported earnings (loss) available to common stockholders by the weighted average number of common shares outstanding for the year. Diluted earnings (loss) per share is computed by dividing reported earnings (loss) available to common stockholders by adjusted weighted average shares outstanding for the year assuming the exercise of all potentially dilutive stock options and warrants. | |||||||||
For the Twelve Months Ended December 31, | |||||||||
2014 | 2013 | ||||||||
Net income / (loss) | $ | 2,242,194 | $ | (1,102,810 | ) | ||||
Average shares of common stock outstanding used to compute basic earnings per share | 29,216,185 | 29,068,483 | |||||||
Additional common shares to be issued assuming exercise of stock options and restricted stock units | 2,472,898 | — | |||||||
Average shares of common and common equivalent stock outstanding used to compute diluted earnings per share | 31,689,083 | 29,068,483 | |||||||
Net income / (loss) per share – Basic: | |||||||||
Net income / (loss) per share | $ | 0.08 | $ | (0.04 | ) | ||||
Weighted average common and common equivalent shares outstanding | 29,216,185 | 29,068,483 | |||||||
Net income / (loss) per share – Diluted: | |||||||||
Net income / (loss) per share | $ | 0.07 | $ | (0.04 | ) | ||||
Weighted average common and common equivalent shares outstanding | 31,689,083 | 29,068,483 | |||||||
For the year ended December 31, 2014, there were restricted stock units representing the right to receive up to 1,126,820 shares of Class A common stock outstanding and options and warrants to purchase 5,722,096 shares of Class A common stock with exercise prices ranging from $0.08 to $0.40 were outstanding. | |||||||||
CONCENTRATION OF CREDIT RISK: The Company invests its cash primarily in deposits with major banks in the United States and United Kingdom. At times, these deposits may fluctuate significantly and may be in excess of statutory insured limits. As of December 31, 2014, such deposits exceeded statutory insured limits by $5,025,584. Concentration of credit risk with respect to trade receivables is moderate due to the relatively diverse customer base. Ongoing credit evaluation of customers’ financial condition is performed and generally no collateral is received. The Company maintains reserves for probable credit losses and such losses in the aggregate have not exceeded management’s estimates. The Company wrote-off $808 and $49,626 of receivables deemed to be uncollectible against the established allowance for doubtful accounts for the years ended December 31, 2014 and 2013, respectively. | |||||||||
COMPREHENSIVE INCOME (LOSS): Comprehensive income (loss) consists of net income (loss) and foreign currency translation adjustments and is presented in the Consolidated Statement of Comprehensive Income / (Loss). | |||||||||
RESEARCH AND DEVELOPMENT: Research and development costs are expensed as incurred. Total research and development costs expensed were $3,055,046 and $2,881,551 for the years ended December 31, 2014 and 2013, respectively. | |||||||||
SHIPPING AND HANDLING FEES AND COSTS: The Company bills customers for shipping and handling. Shipping and handling costs, which are included in cost of products and services in the accompanying consolidated statements of operations, include shipping supplies and third-party shipping costs. | |||||||||
RECENTLY ISSUED AND ADOPTED ACCOUNTING PRONOUNCEMENTS: In July 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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 adoption of this guidance did not have a material impact on its results of operations, financial position or cash flows. | |||||||||
In May 2014, the FASB issued ASU No. 2014-09 – Revenue From Contracts with Customers, to clarify the principles of recognizing revenue and create common revenue recognition guidance between U.S. Generally Accepted Accounting Principles (“GAAP”) and International Financial Reporting Standards. The core principle of the guidance is that a company should recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under current guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. This ASU is effective retrospectively for fiscal years and interim periods within those years beginning after December 15, 2016 and early adoption is not permitted. The Company is currently evaluating the impact of this ASU on the consolidated financial statements. | |||||||||
In August 2014, FASB issued ASU 2014-15, “Presentation of Financial Statements Going Concern (Subtopic 205-40) – Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern”. Currently, there is no guidance in U.S. GAAP about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern or to provide related footnote disclosures. The amendments in this ASU provide that guidance. In doing so, the amendments are intended to reduce diversity in the timing and content of footnote disclosures. The amendments require management to assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards. Specifically, the amendments (1) provide a definition of the term substantial doubt, (2) require an evaluation every reporting period including interim periods, (3) provide principles for considering the mitigating effect of management’s plans, (4) require certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, (5) require an express statement and other disclosures when substantial doubt is not alleviated, and (6) require an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). The amendments in this ASU are effective for public and nonpublic entities for annual periods ending after December 15, 2016. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of this ASU on the consolidated financial statements. |
Supplemental_Schedule_of_NonCa
Supplemental Schedule of Non-Cash Investing and Financing Activities | 12 Months Ended |
Dec. 31, 2014 | |
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 $536,359 and $656,757 in foreign income tax, $0 and $17,487 for federal income tax in the United States, and $0 and $0 for state taxes in the United States for the years ended December 31, 2014 and 2013, respectively. | |
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%. |
Goodwill_and_Amortizable_Intan
Goodwill and Amortizable Intangible Assets | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||
Goodwill and Amortizable Intangible Assets | NOTE 3 – GOODWILL AND AMORTIZABLE INTANGIBLE ASSETS | ||||||||||
Intangible assets consisted of the following: | |||||||||||
Weighted-Average | December 31, | ||||||||||
Useful Lives | 2014 | 2013 | |||||||||
Goodwill | — | $ | 4,896,990 | $ | 4,896,990 | ||||||
Tradenames | 9 | 180,000 | 180,000 | ||||||||
Customer list | 9 | 4,576,813 | 4,576,813 | ||||||||
Technology | 8 | 1,620,000 | 1,620,000 | ||||||||
Other Intangibles | 3 | 493,672 | 493,672 | ||||||||
11,767,475 | 11,767,475 | ||||||||||
Accumulated Goodwill impairment | (2,127,401 | ) | (2,127,401 | ) | |||||||
Accumulated amortization on Tradenames | (160,438 | ) | (140,438 | ) | |||||||
Accumulated amortization on Customer list | (4,125,809 | ) | (3,664,699 | ) | |||||||
Accumulated amortization on Technology | (1,620,000 | ) | (1,421,938 | ) | |||||||
Accumulated amortization on Other Intangibles | (493,672 | ) | (493,672 | ) | |||||||
$ | 3,240,155 | $ | 3,919,327 | ||||||||
Amortization expense on intangible assets amounted to $679,172 and $683,611 for the years ended December 31, 2014 and 2013, respectively. Amortization expense on intangible assets with a definite life for the next 5 years as of December 31 is as follows: 2015 - $470,566; and thereafter - $0. |
Property_Equipment_and_Softwar
Property, Equipment and Software Development Costs | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property, Equipment and Software Development Costs | NOTE 4 – PROPERTY, EQUIPMENT AND SOFTWARE DEVELOPMENT COSTS | ||||||||
Property, equipment and software development costs consisted of the following: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Equipment | $ | 2,158,785 | $ | 2,054,346 | |||||
Furniture | 769,121 | 736,787 | |||||||
Leasehold improvements | 337,746 | 303,989 | |||||||
Software and Software development costs | 10,996,534 | 10,111,953 | |||||||
14,262,186 | 13,207,075 | ||||||||
Less accumulated depreciation and amortization | (11,981,693 | ) | (11,046,483 | ) | |||||
$ | 2,280,493 | $ | 2,160,592 | ||||||
Depreciation and amortization expense on property, equipment, and software amounted to $1,198,700 and $1,152,081 for the years ended December 31, 2014 and 2013, respectively. Fixed assets that were fully depreciated and no longer in use in 2014 with an original cost of $274,739 were written off. In 2013, fully depreciated fixed assets, with an original cost of $102,977, were written off. | |||||||||
Amortization expense of developed software amounted to $775,503 and $734,369 for the years ended December 31, 2014 and 2013, respectively. Amortization expense of developed software is a cost of sales. | |||||||||
Accumulated amortization related to developed software amounted to $8,229,879 and $7,454,376 as of December 31, 2014 and December 31, 2013, respectively. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Commitments and Contingencies | NOTE 5 – COMMITMENTS AND CONTINGENCIES | ||||
A. LEASE COMMITMENTS: | |||||
The Company leases its office facilities and certain equipment under long-term operating leases, which expire at various dates. Minimum aggregate annual rentals for the future five-year periods and thereafter, subject to certain escalation clauses, through long-term operating leases are as follows: | |||||
Year ending December 31: | |||||
2015 | $ | 324,921 | |||
2016 | 308,373 | ||||
2017 | 309,150 | ||||
2018 | 313,133 | ||||
2019 | 264,853 | ||||
Thereafter | 244,607 | ||||
Total | $ | 1,765,037 | |||
Rent and lease expense was $432,993 and $407,435 for the years ended December 31, 2014 and 2013, respectively. The Company leased 15,931 square feet of office space in Indianapolis for an average cost of $257,010 per year. The Indianapolis lease expires in November 2020. The Company leases 1,230 square feet of office space near London in the United Kingdom at an annual rate equivalent approximately to $53,500 per annum. The London lease expires in December 2018. The Company leased 9,360 square feet of office space in Blackburn in the United Kingdom at an annual rate equivalent to approximately $128,000. The Blackburn lease expired December 2014. The Company is currently in negotiations to renew the Blackburn lease. The Company believes that, although its facilities are adequate to meet its current level of sales, additional space may be required to support future growth. In connection with the Indianapolis lease and the Blackburn lease, the lessor contributed money for improvements to the leased premises. The amounts contributed for improvements are being amortized ratably over the life of the lease which reduces the average annual expense related to the leases. | |||||
B. 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 such 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 sought 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. On February 4, 2014, the Company agreed with Qwest to settle the litigation. As part of the settlement, the Company received $3.1 million which was off-set by legal fees of approximately $1.8 million. | |||||
C. EMPLOYMENT AGREEMENTS: | |||||
The Company has entered into employment agreements with certain members of management. The terms of these agreements generally include, but are not limited to, compensation, non-competition, severance and change in control clauses. As of December 31, 2014 and 2013, all relevant amounts have been accrued for under these agreements. |
Debt_Obligations_and_Liquidity
Debt Obligations and Liquidity | 12 Months Ended |
Dec. 31, 2014 | |
Text Block [Abstract] | |
Debt Obligations and Liquidity | NOTE 6 – DEBT OBLIGATIONS AND LIQUIDITY |
On October 30, 2013, the Company, issued to Fairford Holdings, Ltd., a British Virgin Islands company (“Fairford”), Michael Reinarts and John Birbeck (collectively, the “Lenders”) a Promissory Note (the “Note”) in the aggregate principal amount of $1,400,000 (the “Principal Amount”). As of March 12, 2015, Fairford beneficially owned 63.0% of the Company’s outstanding Class A common stock. | |
Under the Note, the Company could have, from the date of the Note through and including the Maturity Date (as defined below), requested that the Lenders made one or more advances under the Note (each, an “Advance”). The Lenders could have, in their sole and absolute discretion, elected to make or decline any Advance requested by the Company under the Note. | |
Pursuant to the Note, the Company promised to pay to the Lenders, on demand made at any time following April 30, 2014, or if demand was not sooner made, on May 31, 2014 (such date, or if earlier, the date demand was made under the Note, the “Maturity Date”), the unpaid balance under the Note plus all interest accrued thereunder as of the Maturity Date in the following proportions: 80% to Fairford Holdings, Ltd., 10% to Michael Reinarts and 10% to John Birbeck. | |
Interest under the Note accrued at a fixed rate per annum equal to 6.50%. Under the Note, on December 31, 2013, the Company paid to the Lenders all interest accrued under the Note as of such date. The Company recorded the accrued interest of $9,548.51 but did not make a payment as of December 31, 2013. | |
As collateral for the Company’s satisfaction of its obligations under the Note, the Company pledged to the Lenders a purchase money lien in all accounts, any receivables, inventory, machinery, equipment, supplies, general intangibles, furniture and fixtures purchased with the Advances. | |
Advances as of December 31, 2013, totaled $1,400,000 under the Note. As of December 31, 2014, the Company paid the Lenders all outstanding and all interest accrued to date. | |
As of December 31, 2014, the Company had working capital of $2,228,305 and stockholders’ equity of $6,661,477. Included in current liabilities was deferred revenue of $4,250,433 which reflects revenue to be recognized in future periods. Therefore, the cash requirements associated with deferred revenue are expected to be less than the recorded liability. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Income Tax Disclosure [Abstract] | |||||||||
Income Taxes | NOTE 7 – INCOME TAXES | ||||||||
The provision (benefit) for income taxes consisted of the following: | |||||||||
Years ended December 31, | |||||||||
2014 | 2013 | ||||||||
Income tax (benefit) expense: | |||||||||
Current provision | |||||||||
Federal | $ | 16,343 | $ | 17,487 | |||||
State | — | — | |||||||
Foreign | 489,831 | 590,011 | |||||||
Deferred | |||||||||
Federal | — | — | |||||||
State | — | — | |||||||
Foreign | (138,044 | ) | (135,184 | ) | |||||
Expense / (benefit) for income taxes | $ | 368,130 | $ | 472,314 | |||||
A reconciliation of income tax expense (benefit) at the statutory rate to income tax expense (benefit) at the Company’s effective tax rate was as follows: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Computed tax (benefit) / expense at the expected statutory rate | $ | 887,510 | $ | (214,369 | ) | ||||
Federal alternative minimum tax | 16,343 | 17,487 | |||||||
Permanent differences | 136,093 | 446,234 | |||||||
Foreign and state tax rate differential | (216,721 | ) | (193,388 | ) | |||||
Adjustment of prior year estimate and realized foreign currency translation | (153,161 | ) | 1,026,406 | ||||||
Uncertain tax position expense | 16,646 | 19,222 | |||||||
Changes in valuation allowance | (318,580 | ) | (629,278 | ) | |||||
$ | 368,130 | $ | 472,314 | ||||||
The permanent differences are primarily related to a deemed dividends in the United States in 2014 and 2013 due to the transfer of cash from the United Kingdom operations to the United States in 2014 and 2013 and to the nondeductible meals and entertainment and dues partially off-set by additional relief for research and development expenditures in the United Kingdom. The 2013 adjustment of prior year estimate is primarily due to an adjustment in the United States tax provision due to the recording of a deemed dividend on the tax return. This adjustment was off-set by the change in valuation allowance. Due to the large net operating loss in the United States and the valuation allowance off-setting the net operating loss, the recording of the deemed dividend had no effect on the Company’s financial statements or cash flows. The change in valuation allowance for the adjustment of prior year estimate is offset by the 2013 net operating loss in the United States. | |||||||||
The components of the overall net deferred tax assets were as follows: | |||||||||
Years Ended December 31, | |||||||||
2014 | 2013 | ||||||||
Assets | |||||||||
Net operating losses | $ | 3,986,608 | $ | 4,607,851 | |||||
Allowance for doubtful accounts | 7,949 | 5,428 | |||||||
Vacation and bonus compensation and other accruals | 87,462 | 133,025 | |||||||
Property tax | 5,445 | 5,100 | |||||||
Stock options expensed | 159,055 | 72,997 | |||||||
Capital loss carryforward | 10,060 | 10,365 | |||||||
State depreciation adjustment | 2,901 | 3,401 | |||||||
Tax credit carryforward | 243,149 | 244,293 | |||||||
Total assets | $ | 4,502,629 | $ | 5,082,460 | |||||
Liabilities | |||||||||
Depreciation and amortization | (646,955 | ) | (676,146 | ) | |||||
Undistributed foreign earnings | (448,261 | ) | — | ||||||
Deferred revenue | (37,446 | ) | (37,191 | ) | |||||
Deferred acquisition intangibles | (107,605 | ) | (207,805 | ) | |||||
Total liabilities | (1,240,267 | ) | (921,142 | ) | |||||
Valuation allowance | (3,499,815 | ) | (4,554,587 | ) | |||||
Deferred tax liability, net | $ | (237,453 | ) | $ | (393,269 | ) | |||
The Company records a valuation allowance against its deferred tax asset to the extent management believes, it is more likely than not, that the asset will not be realized. As of December 31, 2014, the Company continued to provide a valuation allowance against the Company’s United States deferred tax assets which consist primarily of net operating loss carryforwards net of certain deferred tax liabilities. | |||||||||
The following is a rollforward of the Company’s liability for income taxes associated with unrecognized tax benefits: | |||||||||
Balance as of January 1, 2013 | $ | 123,406 | |||||||
Tax positions related to the current year: | |||||||||
Additions | 19,222 | ||||||||
Tax positions related to prior years: | |||||||||
Additions | 3,839 | ||||||||
Balance as of December 31, 2013 | 146,467 | ||||||||
Tax positions related to the current year: | |||||||||
Additions | 16,646 | ||||||||
Reductions | — | ||||||||
Tax positions related to prior years: | |||||||||
Reductions | (10,074 | ) | |||||||
Balance as of December 31, 2014 | $ | 153,039 | |||||||
If the unrecognized tax benefits were recognized, they would favorably affect the effective income tax rate in future periods. Consistent with the provisions of accounting guidance for uncertain tax positions, the Company has classified certain income tax liabilities for its United Kingdom operations as current or noncurrent based on management’s estimate of when these liabilities will be settled. For its U.S. operations, the liability associated with an unrecognized tax benefit has been offset against the deferred tax asset for the U.S. net operating loss carryforward. | |||||||||
The Company and its subsidiaries file income tax returns in the U.S., the state of Indiana and other various states and the foreign jurisdiction of the United Kingdom. The Company remains subject to examination by taxing authorities in the jurisdictions the Company has filed returns for years after 2009. 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 accrued $0 and $1,005 for interest and penalties at December 31, 2014 and 2013, respectively. | |||||||||
At December 31, 2014, the Company had available unused net operating losses of $9,643,137 and tax credit carryforwards of approximately $243,149 that may be applied against future taxable income and that expire from 2017 to 2033. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning in making these assessments. At December 31, 2014, the Company had a valuation allowance of $3,499,815 established against the U.S. deferred tax assets as utilization of these tax assets is not assured in the United States. Prior to October 1, 2013, the Company considered its cumulative earnings related to non-U.S. subsidiaries to be permanently reinvested. Due to the Company transferring cash from its non-U.S. subsidiaries to the US in both 2012 and 2013, the Company no longer considers earnings related to non-U.S. subsidiaries to be permanently reinvested. |
Stock_Based_Compensation
Stock Based Compensation | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||
Stock Based Compensation | NOTE 8 – STOCK BASED COMPENSATION | ||||||||||||||||||||
The Company’s Amended and Restated Stock Option and Restricted Stock Plan (the “Plan”) provided 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 Securities Exchange Commission. 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 Securities Exchange Commission. 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, (iv) performance awards, and (v) restricted stock units. | |||||||||||||||||||||
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. 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 December 31, 2014, there were options to purchase 4,684,926 shares of Class A common stock outstanding consisting of 4,434,926 Plan and Stock Incentive Plan options and 250,000 outside plan stock options. There were options to purchase 4,184,914 shares of Class A common stock plus 250,000 outside plan stock options that were exercisable as of December 31, 2014. At December 31, 2014, there were restricted stock units (“RSUs”) representing the right to receive up to 1,129,820 shares of Class A common stock outstanding none of which were vested. There are 1,483,838 shares available to grant under the Plan and Stock Incentive Plan at December 31, 2014. | |||||||||||||||||||||
Information with respect to options and RSU was as follows on the date indicated: | |||||||||||||||||||||
Options & | Exercise | Weighted | |||||||||||||||||||
RSU Shares | Price Range | Average | |||||||||||||||||||
Per Share | Exercise Price | ||||||||||||||||||||
Outstanding, December 31, 2012 | 5,691,350 | $ | 0.08 - $ 0.40 | $ | 0.25 | ||||||||||||||||
Granted | — | — | — | ||||||||||||||||||
Exercised | (174,000 | ) | $ | 0.21 | $ | 0.21 | |||||||||||||||
Cancelled | (265,250 | ) | $ | 0.08 - $ 0.225 | 0.17 | ||||||||||||||||
Outstanding, December 31, 2013 | 5,252,100 | $ | 0.08 - $ 0.40 | $ | 0.26 | ||||||||||||||||
Granted – RSUs | 1,129,820 | — | — | ||||||||||||||||||
Exercised | (36,666 | ) | $ | 0.08 - $ 0.23 | $ | 0.13 | |||||||||||||||
Cancelled | (533,508 | ) | $ | 0.00 - $ 0.34 | 0.23 | ||||||||||||||||
Outstanding, December 31, 2014 | 5,811,746 | $ | 0.00 - $ 0.40 | $ | 0.21 | ||||||||||||||||
The future compensation costs related to non-vested options and RSUs at December 31, 2014 is $173,730. The future costs recognized in 2015, 2016 and 2017 will be $92,468, $60,455 and $20,806, respectively. | |||||||||||||||||||||
The following table summarizes options exercisable at December 31: | |||||||||||||||||||||
Option | Exercise Price | Weighted | Aggregate | Weighted | |||||||||||||||||
Shares | Range | Average | Intrinsic | Remaining | |||||||||||||||||
Per Share | Exercise Price | Value | Contractual Term | ||||||||||||||||||
December 31, 2013 | 4,589,557 | $ | 0.08 - $0.40 | $ | 0.27 | $ | 455,066 | 4.05 years | |||||||||||||
December 31, 2014 | 4,434,914 | $ | 0.08 - $0.40 | $ | 0.27 | $ | 402,534 | 3.18 years | |||||||||||||
The following tables summarizes non-vested options and RSUs: | |||||||||||||||||||||
Option/RSU | |||||||||||||||||||||
Shares | |||||||||||||||||||||
31-Dec-13 | 662,543 | ||||||||||||||||||||
Granted | 1,129,820 | ||||||||||||||||||||
Cancelled | (71,225 | ) | |||||||||||||||||||
Vested | (344,306 | ) | |||||||||||||||||||
31-Dec-14 | 1,376,832 | ||||||||||||||||||||
Option | Weighted | Aggregate | Weighted | ||||||||||||||||||
Shares | Average | Intrinsic | Remaining | ||||||||||||||||||
Exercise Price | Value | Contractual Term | |||||||||||||||||||
December 31, 2013 | 662,543 | $ | 0.21 | $ | 98,409 | 8.47 years | |||||||||||||||
December 31, 2014 | 1,376,832 | $ | 0.04 | $ | 424,855 | 3.10 years | |||||||||||||||
Included within selling, general and administrative expense for the years ended December 31, 2014 and December 31, 2013 is $121,418 and $61,264, 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. | |||||||||||||||||||||
The fair value of each option and RSUs 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 table below. Because closed-form valuation models incorporate assumptions for inputs, those assumptions are disclosed. 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. | |||||||||||||||||||||
2014 | |||||||||||||||||||||
Risk-free interest rate | 0.5 | % | |||||||||||||||||||
Dividend yield | 0 | % | |||||||||||||||||||
Volatility factor | 91 | % | |||||||||||||||||||
Expected lives | 5 years |
Major_Customers
Major Customers | 12 Months Ended |
Dec. 31, 2014 | |
Text Block [Abstract] | |
Major Customers | NOTE 9 – MAJOR CUSTOMERS |
For the years ended December 31, 2014 and 2013, the Company had revenues from a single customer aggregating $3,611,949 (19.7% of revenues) and $3,381,441 (20.2% of total revenues), respectively. The Company had receivables from this customer of $277,619 (7.8% of trade accounts receivable, net) and $234,960 (7.3% of trade accounts receivable, net) as of December 31, 2014 and December 31, 2013, respectively. The loss of this customer would have a substantial negative impact on the Company. |
Retirement_Plan
Retirement Plan | 12 Months Ended |
Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |
Retirement Plan | NOTE 10 – RETIREMENT PLAN |
The Company maintains a defined contribution plan qualified under Section 401(k) of the Internal Revenue Code of 1986, as amended, that covers certain eligible U.S., full-time employees. The Company matches 100% of participant contributions up to 6% of participant compensation for US employees. The Company made contributions of $168,640 in 2014 and $137,007 in 2013. The Company maintains a defined contribution plan for its U.K. employees. The Company matches for U.K. employees up to 100% of participant contributions up to 6%. The Company made contributions of approximately $243,197 in 2014 and $210,325 in 2013 for U.K. employees. |
Segment_Information
Segment Information | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||
Segment Information | NOTE 11 – SEGMENT INFORMATION | ||||||||||||||||
The Company designs, develops, markets and supports billing and data management software and services. In accordance with accounting guidance on disclosures about segments of an enterprise and related information, the Company has two reportable segments: Electronic Invoice Management (“EIM”) and Call Accounting Management and Recording (“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. The Company provided these services primarily through facilities located in Indianapolis, Indiana and Blackburn, United Kingdom. | |||||||||||||||||
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. | |||||||||||||||||
The accounting policies for segment reporting are the same as those described in Note 1 of the Notes to Consolidated Financial Statements. Summarized financial information concerning the Company’s reportable segments is shown in the following table. Reconciling items for operating income / (loss) on the following table represent corporate expenses and depreciation. | |||||||||||||||||
The following table presents selected financial results by business segment: | |||||||||||||||||
2014 | Electronic | Call | Corporate | Consolidated | |||||||||||||
Invoice | Accounting | Allocation | |||||||||||||||
Management | Management | ||||||||||||||||
and Recording | |||||||||||||||||
Revenues | $ | 9,220,444 | $ | 9,078,125 | $ | — | $ | 18,298,569 | |||||||||
Gross profit - Revenues less cost of products, excluding depreciation and amortization | 7,418,843 | 6,578,782 | — | 13,997,625 | |||||||||||||
Depreciation and amortization | 1,253,171 | 612,919 | 11,782 | 1,877,872 | |||||||||||||
Income (loss) from operations | 955,192 | 1,926,680 | (1,580,374 | ) | 1,301,498 | ||||||||||||
Long-lived assets | 4,104,828 | 1,356,620 | 88,418 | 5,549,866 | |||||||||||||
2013 | Electronic | Call | Corporate | Consolidated | |||||||||||||
Invoice | Accounting | Allocation | |||||||||||||||
Management | Management | ||||||||||||||||
and Recording | |||||||||||||||||
Revenues | $ | 9,869,250 | $ | 5,613,746 | $ | — | $ | 15,482,996 | |||||||||
Gross profit - Revenues less cost of products, excluding depreciation and amortization | 8,141,244 | 3,548,223 | — | 11,689,467 | |||||||||||||
Depreciation and amortization | 1,338,782 | 491,990 | 4,920 | 1,835,692 | |||||||||||||
Income (loss) from operations | 1,895,843 | (762,935 | ) | (1,753,994 | ) | (621,086 | ) | ||||||||||
Long-lived assets | 4,987,497 | 1,235,772 | 9,091 | 6,232,360 | |||||||||||||
The following table presents selected financial results by geographic location based on location of customer: | |||||||||||||||||
2014 | United States | United Kingdom | Consolidated | ||||||||||||||
Net revenues | $ | 6,039,025 | $ | 12,259,544 | $ | 18,298,569 | |||||||||||
Gross profit - Revenues less costs of products, excluding depreciation and amortization | 4,688,424 | 9,309,201 | 13,997,625 | ||||||||||||||
Depreciation and Amortization | 599,839 | 1,278,033 | 1,877,872 | ||||||||||||||
Income / (loss) from operations | (447,401 | ) | 1,748,899 | 1,301,498 | |||||||||||||
Long-lived assets | 4,631,488 | 918,378 | 5,549,866 | ||||||||||||||
2013 | United States | United Kingdom | Consolidated | ||||||||||||||
Net revenues | $ | 3,635,199 | $ | 11,847,797 | $ | 15,482,996 | |||||||||||
Gross profit - Revenues less costs of products, excluding depreciation and amortization | 2,544,480 | 9,144,987 | 11,689,467 | ||||||||||||||
Depreciation and Amortization | 492,357 | 1,343,335 | 1,835,692 | ||||||||||||||
Income / (loss) from operations | (2,419,567 | ) | 1,798,481 | (621,086 | ) | ||||||||||||
Long-lived assets | 5,254,715 | 977,645 | 6,232,360 |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2014 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 12 –RELATED PARTY TRANSACTIONS |
During the fiscal year ended December 31, 2014, RSUs representing the right to receive up to 130,243 and 96,157 shares of the Company’s Class A common stock were granted to Mr. Birbeck and Mr. Hanuschek, the Company’s Chief Executive Officer and Chief Financial Officer, respectively. All of the RSUs granted to Mr. Birbeck and Mr. Hanuschek vest ratably over three years on the anniversary date of the grant. During the fiscal year ended December 31, 2014, RSUs representing the right to receive up to 150,000 shares of the Company’s Class A common stock were granted to both Mr. Reinarts and Mr. Rao, members of the Company’s Board of Directors. The RSUs granted in the amount of 100,000 shares to Mr. Reinarts and Mr. Rao, vest ratably over three years on the anniversary date of the grant and RSUs granted in the amount of 50,000 shares to Mr. Reinarts and Mr. Rao, are fully vested on the first anniversary date of the grant. | |
The Company incurred $12,000 in fees and $18,485 in expenses associated with the Board of Directors activities in 2014 and $110,000 in fees and $15,457 in expenses associated with the Board of Directors activities in 2013. | |
On February 13, 2014, the Board of Directors of the Company, increased the number of directors on the Board of Directors from six to seven and, upon the recommendation of the Nominating Committee of the Board of Directors, elected Siddhartha Rao as a director to fill the newly created position on the Board of Directors. Mr. Rao was not appointed to any committee of the Board of Directors. Mr. Rao served as the Company’s Chief Technology Officer until his resignation on February 10, 2014 and, until such time, Mr. Rao was employed on an at will basis. Mr. Rao will participate in the non-employee director compensation arrangements generally applicable to all of the Company’s non-employee directors. There is no arrangement or understanding between Mr. Rao and any other person pursuant to which Mr. Rao was selected to serve as a director on the Board of Directors. In addition, Mr. Rao has no family relationship with any director or executive officer of the Company. Pursuant to Mr. Rao’s former employment arrangement with the Company, Mr. Rao earned an aggregate of $148,468 and $161,389 in total compensation in 2012 and 2013, respectively. | |
On October 30, 2013, the Company, issued to Fairford, Michael Reinarts and John Birbeck (collectively, the “Lenders”) a Promissory Note (the “Note”) in the aggregate principal amount of $1,400,000 (the “Principal Amount”). As of March 12, 2015, Fairford beneficially owned 63.0% of the Company’s outstanding Class A common stock. Pursuant to the Note, the Company promised to pay to the Lenders, on demand made at any time following April 30, 2014, or if demand is not sooner made, on May 31, 2014 (such date, or if earlier, the date demand is made under the Note, the “Maturity Date”), the unpaid balance under the Note plus all interest accrued thereunder as of the Maturity Date in the following proportions: 80% to Fairford Holdings, Ltd., 10% to Michael Reinarts and 10% to John Birbeck. Advances as of December 31, 2013, totaled $1,400,000 under the Note. As of December 31, 2014, the Company paid all principal on the note and all accrued interest. | |
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 was the Company’s Chief Executive Officer (the “Buying Group”), to purchase all of the outstanding shares of stock of the Company for a cash purchase price of $0.29 per share. On December 30, 2013, the purchase price on the offer was increased to $0.40 per share (the “Revised Offer”). On June 17, 2014, the Company issued a press release announcing that, on June 14, 2014, the Special Committee of the Company’s Board of Directors (the “Special Committee”) rejected the Revised Offer. Upon being informed of the Special Committee’s rejection of the Revised Offer, the Buying Group informed the Company on June 14, 2014 that it would not be increasing, and formally withdrew, the Revised Offer. Accordingly, the Special Committee was disbanded effective immediately. |
Description_of_Business_and_Su1
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Accounting Policies [Abstract] | |||||||||
BUSINESS | BUSINESS: CTI Group (Holdings) Inc. and its wholly-owned subsidiaries (the “Company” or “CTI”) design, develop, market and support billing and data management software and services. The Company operates in two business segments: Electronic Invoice Management and Call Accounting Management and Recording. The majority of the Company’s business is in North America and Europe. | ||||||||
The Company’s future operations involve a number of risks and uncertainties. Factors that could affect future operating results and cause actual results to vary from historical results include, but are not limited to: adverse economic conditions, risks associated with doing business outside the United States, significant foreign currency fluctuations, impairments may be recorded on intangibles, loss of its significant customers, inability to enhance existing products and services to meet the evolving needs of customers, the Company’s inability to compete successfully, the Company’s inability to successfully enter new markets, the Company’s inability to maintain an effective system of internal controls, control of the Company’s stock is concentrated among directors and officers, the Company is subject to penny stock rules which may adversely affect trading of the Company’s Class A common stock, and there is not presently an active market for the Company’s Class A common stock. | |||||||||
BASIS OF PRESENTATION | BASIS OF PRESENTATION: The consolidated financial statements include the accounts of the Company and its subsidiaries, after elimination of all significant intercompany accounts and transactions. The consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). | ||||||||
The Company follows accounting standards set by the Financial Accounting Standards Board (“FASB”). The FASB establishes accounting principles generally accepted in the United States (“GAAP”) that the Company follows. Rules and interpretive releases of the Securities and Exchange Commission (“SEC”) under authority of federal securities laws are also sources of authoritative GAAP for SEC registrants, which the Company is required to follow. References to GAAP issued by the FASB in these footnotes are to the FASB Accounting Standards Codification (“ASC”), which serves as a single source of authoritative non-SEC accounting and reporting standards to be applied by nongovernmental entities. | |||||||||
FOREIGN CURRENCY TRANSLATION | FOREIGN CURRENCY TRANSLATION: The consolidated financial statements include the accounts of the Company’s wholly owned United Kingdom-based subsidiaries. The financial statements of the Company’s foreign subsidiaries have been included in the consolidated financial statements and have been translated to U.S. dollars in accordance with accounting guidance on foreign currency translation. Assets and liabilities are translated at current rates in effect at the consolidated balance sheet date and stockholders’ equity is translated at historical exchange rates. Revenue and expenses are translated at the average exchange rate for the applicable period. Any resulting translation adjustments are made directly to accumulated other comprehensive income. Included in selling, general and administrative expenses is a transaction gain of approximately $8,000 for the year ended December 31, 2014 and a transaction loss of approximately $60,000 for the year ended December 31, 2013. | ||||||||
CASH AND CASH EQUIVALENTS | CASH AND CASH EQUIVALENTS: Cash and cash equivalents include the cash on hand, demand deposits and highly liquid investments. The Company considers all highly liquid investments, with maturity of three months or less, to be cash equivalents. | ||||||||
ADVERTISING COSTS | ADVERTISING COSTS: The Company expenses advertising costs as incurred. For the years ended December 31, 2014 and 2013, advertising expense was $3,175 and $1,275, respectively. | ||||||||
USE OF ESTIMATES | USE OF ESTIMATES: The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Accordingly, actual results could differ from those estimates. Estimates utilized by the Company include the determination of the collectibility of receivables, valuation of stock options, recoverability and/or impairment of goodwill and intangible assets, depreciation and amortization, accrued compensation and other liabilities, commitments and contingencies, valuation of tax asset on net operating losses in the United States, and capitalization and impairment of computer software development costs. | ||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | FAIR VALUE OF FINANCIAL INSTRUMENTS: The Company’s financial instruments consist primarily of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses, and notes payable. At December 31, 2014 and 2013, the book values of these financial instruments are considered to be representative of their respective fair values due to the short maturity of these instruments. | ||||||||
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT: Property and equipment are stated at cost. Depreciation and amortization are calculated on a straight-line basis over the estimated useful lives of the assets. Furniture, fixtures and equipment are depreciated over the estimated useful lives of three to five years. Leasehold improvements are amortized over the period of the lease or the useful lives of the improvements, whichever is shorter. All maintenance and repair costs are charged to operations as incurred. | ||||||||
COMPUTER SOFTWARE | COMPUTER SOFTWARE: Expenditures for producing product masters incurred subsequent to establishing technological feasibility are capitalized and are amortized on a product-by-product basis for three years. The amortization is computed using the greater of (a) the straight-line method over the estimated economic life of the product or (b) the ratio that the current gross revenue for the products bear to the total current and anticipated future gross revenue of the products. The accounting guidance requires the periodic evaluation of the net realizable value of capitalized computer software costs. The excess of any unamortized computer software costs over its related net realizable value at a balance sheet date shall be written down. See Note 4 – Property, Equipment and Software Development Costs. The Company capitalized $935,808 and $1,093,776 for the years ended December 31, 2014 and 2013, respectively, in costs related to its software development. The amortization expense for developed software which relates to cost of sales was $775,503 and $734,369 for the years ended December 31, 2014 and 2013, respectively. | ||||||||
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS: The Company considers the goodwill and related intangible assets related to CTI Billing Solutions Limited to be the premium the Company paid for CTI Billing Solutions Limited. For accounting purposes, these assets are maintained at the corporate level and the Company considers the functional currency with respect to these assets the U.S. dollar. Goodwill is tested for impairment on an annual basis each October and between annual tests in certain circumstances, and written down when impaired. The Company did not record goodwill impairments in 2014 and 2013. An impairment charge is recognized when the fair value of the asset is less than its carrying amount. The Company’s fair value was determined using discounted cash flows and other market-related valuation models. Certain estimates and judgments are required in the application of the fair value models. Purchased intangible assets other than goodwill are amortized on a straight line basis over their useful lives unless these lives are determined to be indefinite. Purchased intangible assets are carried at cost, less accumulated amortization. Amortization is computed over the estimated useful lives of the respective assets, generally 3-15 years. Intangible assets consist of patents, purchased technology, trademarks and trade names, and customer lists. | ||||||||
LONG-LIVED ASSETS | LONG-LIVED ASSETS: The Company reviews the recoverability of the carrying value of its long-lived assets, including intangible assets with definite lives using the methodology prescribed in accounting guidance for the impairment or disposal of long-lived assets. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. When such events occur, the Company compares the carrying amount of the assets to the undiscounted expected future cash flows. If this comparison indicates there is impairment, the amount of the impairment is typically calculated using discounted expected future cash flows. The Company did not record any impairments in 2014 or 2013. | ||||||||
REVENUE RECOGNITION | REVENUE RECOGNITION: The Company’s revenue recognition policy is consistent with the requirements set forth in accounting guidance for revenue recognition. In general, the Company records revenue when it is realized, or realizable, and earned. Revenues from software licenses are recognized upon shipment, delivery or customer acceptance of the software, based on the substance of the arrangement or as defined in the sales agreement provided there are no significant remaining vendor obligations to be fulfilled and collectibility is reasonably assured. Software sales revenue is generated from licensing software to new customers and from licensing additional users and new applications to existing customers. | ||||||||
The Company maintains reserves for probable credit losses. The Company analyzes the accounts receivable aging and provides a percentage against receivables based on the aging to calculate the allowance for doubtful accounts. The Company will periodically review the percentage used in the calculation of the allowance for doubtful accounts to ensure that it is reasonable based on historical collection rates. | |||||||||
The following is a rollforward of the allowance for doubtful accounts | |||||||||
Balance as of January 1, 2013 | $ | 97,704 | |||||||
Provision | 1,118 | ||||||||
Bad debt write-off | (49,626 | ) | |||||||
Recovery of previously written-off accounts | — | ||||||||
Exchange rate fluctuation | 4,844 | ||||||||
Balance as of December 31, 2013 | $ | 54,040 | |||||||
Provision | 16,327 | ||||||||
Bad debt write-off | (808 | ) | |||||||
Recovery of previously written-off accounts | — | ||||||||
Exchange rate fluctuation | (2,853 | ) | |||||||
Balance as of December 31, 2014 | $ | 66,706 | |||||||
The Company’s sales arrangements typically include services in addition to software. Service revenues are generated from support and maintenance, processing, training, consulting, and customization services. For sales arrangements that include bundled software and services, the Company accounts for any undelivered service offering as a separate element of a multiple-element arrangement. Amounts deferred for services are determined based upon vendor-specific objective evidence of the fair value of the elements as prescribed in accounting guidance for software revenue recognition. Support and maintenance revenues are recognized on a straight-line basis over the term of the agreement. Revenues from processing, training, consulting, and customization are recognized as provided to customers. If the services are essential to the functionality of the software, revenue from the software component is deferred until the essential service is complete. | |||||||||
If an arrangement to deliver software or a software system, either alone or together with other products or services, requires significant production, modification, or customization of software, the service element does not meet the criteria for separate accounting. If the criteria for separate accounting are not met, the entire arrangement is accounted for in conformity with guidance related to long-term construction type contracts. The Company carefully evaluates the circumstances surrounding the implementations to determine whether the percentage-of-completion method or the completed-contract method should be used. Most implementations relate to the Company’s products and are completed in less than 30 days once the work begins. The Company uses the completed-contract method on contracts that will be completed within 30 days since it produces a result similar to the percentage-of-completion method. On contracts that will take over 30 days to complete, the Company uses the percentage-of-completion method of contract accounting. | |||||||||
STOCK BASED COMPENSATION | STOCK BASED COMPENSATION: Under accounting guidance on share-based payment, the Company recognizes the cost of employee services received in exchange for awards of equity instruments, such as stock options and restricted stock, based on the fair value of those awards at the date of grant. | ||||||||
INCOME TAXES | INCOME TAXES: The Company accounts for income taxes following the accounting guidance for accounting for income taxes, which requires recording income taxes under the asset and liability method of accounting for income taxes. Under the asset and liability method, deferred income taxes are recognized for the tax consequences of “temporary differences” by applying enacted statutory tax rates applicable to future years to differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recorded based on a determination of the ultimate realizability of net deferred tax assets. Prior to October 1, 2013, the Company considered its cumulative earnings related to non-U.S. | ||||||||
subsidiaries to be permanently reinvested, however, due to the Company transferring cash from its non-U.S. subsidiaries to the US, in both 2012 and 2013, the Company no longer considers earnings related to non-U.S. subsidiaries to be permanently reinvested. See Note 7 of the Notes to Consolidated Financial Statements. | |||||||||
Uncertain income tax positions are recognized 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. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. | |||||||||
BASIC AND DILUTED INCOME / (LOSS) PER COMMON SHARE | BASIC AND DILUTED INCOME / (LOSS) PER COMMON SHARE: Net income (loss) per common share is computed in accordance with accounting guidance on earnings per share. Basic earnings (loss) per share is computed by dividing reported earnings (loss) available to common stockholders by the weighted average number of common shares outstanding for the year. Diluted earnings (loss) per share is computed by dividing reported earnings (loss) available to common stockholders by adjusted weighted average shares outstanding for the year assuming the exercise of all potentially dilutive stock options and warrants. | ||||||||
For the Twelve Months Ended December 31, | |||||||||
2014 | 2013 | ||||||||
Net income / (loss) | $ | 2,242,194 | $ | (1,102,810 | ) | ||||
Average shares of common stock outstanding used to compute basic earnings per share | 29,216,185 | 29,068,483 | |||||||
Additional common shares to be issued assuming exercise of stock options and restricted stock units | 2,472,898 | — | |||||||
Average shares of common and common equivalent stock outstanding used to compute diluted earnings per share | 31,689,083 | 29,068,483 | |||||||
Net income / (loss) per share – Basic: | |||||||||
Net income / (loss) per share | $ | 0.08 | $ | (0.04 | ) | ||||
Weighted average common and common equivalent shares outstanding | 29,216,185 | 29,068,483 | |||||||
Net income / (loss) per share – Diluted: | |||||||||
Net income / (loss) per share | $ | 0.07 | $ | (0.04 | ) | ||||
Weighted average common and common equivalent shares outstanding | 31,689,083 | 29,068,483 | |||||||
For the year ended December 31, 2014, there were restricted stock units representing the right to receive up to 1,126,820 shares of Class A common stock outstanding and options and warrants to purchase 5,722,096 shares of Class A common stock with exercise prices ranging from $0.08 to $0.40 were outstanding. | |||||||||
CONCENTRATION OF CREDIT RISK | CONCENTRATION OF CREDIT RISK: The Company invests its cash primarily in deposits with major banks in the United States and United Kingdom. At times, these deposits may fluctuate significantly and may be in excess of statutory insured limits. As of December 31, 2014, such deposits exceeded statutory insured limits by $5,025,584. Concentration of credit risk with respect to trade receivables is moderate due to the relatively diverse customer base. Ongoing credit evaluation of customers’ financial condition is performed and generally no collateral is received. The Company maintains reserves for probable credit losses and such losses in the aggregate have not exceeded management’s estimates. The Company wrote-off $808 and $49,626 of receivables deemed to be uncollectible against the established allowance for doubtful accounts for the years ended December 31, 2014 and 2013, respectively. | ||||||||
COMPREHENSIVE INCOME (LOSS) | COMPREHENSIVE INCOME (LOSS): Comprehensive income (loss) consists of net income (loss) and foreign currency translation adjustments and is presented in the Consolidated Statement of Comprehensive Income / (Loss). | ||||||||
RESEARCH AND DEVELOPMENT | RESEARCH AND DEVELOPMENT: Research and development costs are expensed as incurred. Total research and development costs expensed were $3,055,046 and $2,881,551 for the years ended December 31, 2014 and 2013, respectively. | ||||||||
SHIPPING AND HANDLING FEES AND COSTS | SHIPPING AND HANDLING FEES AND COSTS: The Company bills customers for shipping and handling. Shipping and handling costs, which are included in cost of products and services in the accompanying consolidated statements of operations, include shipping supplies and third-party shipping costs. | ||||||||
RECENTLY ISSUED AND ADOPTED ACCOUNTING PRONOUNCEMENTS | RECENTLY ISSUED AND ADOPTED ACCOUNTING PRONOUNCEMENTS: In July 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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 adoption of this guidance did not have a material impact on its results of operations, financial position or cash flows. | ||||||||
In May 2014, the FASB issued ASU No. 2014-09 – Revenue From Contracts with Customers, to clarify the principles of recognizing revenue and create common revenue recognition guidance between U.S. Generally Accepted Accounting Principles (“GAAP”) and International Financial Reporting Standards. The core principle of the guidance is that a company should recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under current guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. This ASU is effective retrospectively for fiscal years and interim periods within those years beginning after December 15, 2016 and early adoption is not permitted. The Company is currently evaluating the impact of this ASU on the consolidated financial statements. | |||||||||
In August 2014, FASB issued ASU 2014-15, “Presentation of Financial Statements Going Concern (Subtopic 205-40) – Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern”. Currently, there is no guidance in U.S. GAAP about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern or to provide related footnote disclosures. The amendments in this ASU provide that guidance. In doing so, the amendments are intended to reduce diversity in the timing and content of footnote disclosures. The amendments require management to assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards. Specifically, the amendments (1) provide a definition of the term substantial doubt, (2) require an evaluation every reporting period including interim periods, (3) provide principles for considering the mitigating effect of management’s plans, (4) require certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, (5) require an express statement and other disclosures when substantial doubt is not alleviated, and (6) require an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). The amendments in this ASU are effective for public and nonpublic entities for annual periods ending after December 15, 2016. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of this ASU on the consolidated financial statements. |
Description_of_Business_and_Su2
Description of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Accounting Policies [Abstract] | |||||||||
Allowance for Doubtful Accounts | The following is a rollforward of the allowance for doubtful accounts | ||||||||
Balance as of January 1, 2013 | $ | 97,704 | |||||||
Provision | 1,118 | ||||||||
Bad debt write-off | (49,626 | ) | |||||||
Recovery of previously written-off accounts | — | ||||||||
Exchange rate fluctuation | 4,844 | ||||||||
Balance as of December 31, 2013 | $ | 54,040 | |||||||
Provision | 16,327 | ||||||||
Bad debt write-off | (808 | ) | |||||||
Recovery of previously written-off accounts | — | ||||||||
Exchange rate fluctuation | (2,853 | ) | |||||||
Balance as of December 31, 2014 | $ | 66,706 | |||||||
Calculation of Basic and Diluted Earnings (Loss) Per Share | |||||||||
For the Twelve Months Ended December 31, | |||||||||
2014 | 2013 | ||||||||
Net income / (loss) | $ | 2,242,194 | $ | (1,102,810 | ) | ||||
Average shares of common stock outstanding used to compute basic earnings per share | 29,216,185 | 29,068,483 | |||||||
Additional common shares to be issued assuming exercise of stock options and restricted stock units | 2,472,898 | — | |||||||
Average shares of common and common equivalent stock outstanding used to compute diluted earnings per share | 31,689,083 | 29,068,483 | |||||||
Net income / (loss) per share – Basic: | |||||||||
Net income / (loss) per share | $ | 0.08 | $ | (0.04 | ) | ||||
Weighted average common and common equivalent shares outstanding | 29,216,185 | 29,068,483 | |||||||
Net income / (loss) per share – Diluted: | |||||||||
Net income / (loss) per share | $ | 0.07 | $ | (0.04 | ) | ||||
Weighted average common and common equivalent shares outstanding | 31,689,083 | 29,068,483 | |||||||
Goodwill_and_Amortizable_Intan1
Goodwill and Amortizable Intangible Assets (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||
Summary of Goodwill and Amortizable Intangible Assets | Intangible assets consisted of the following: | ||||||||||
Weighted-Average | December 31, | ||||||||||
Useful Lives | 2014 | 2013 | |||||||||
Goodwill | — | $ | 4,896,990 | $ | 4,896,990 | ||||||
Tradenames | 9 | 180,000 | 180,000 | ||||||||
Customer list | 9 | 4,576,813 | 4,576,813 | ||||||||
Technology | 8 | 1,620,000 | 1,620,000 | ||||||||
Other Intangibles | 3 | 493,672 | 493,672 | ||||||||
11,767,475 | 11,767,475 | ||||||||||
Accumulated Goodwill impairment | (2,127,401 | ) | (2,127,401 | ) | |||||||
Accumulated amortization on Tradenames | (160,438 | ) | (140,438 | ) | |||||||
Accumulated amortization on Customer list | (4,125,809 | ) | (3,664,699 | ) | |||||||
Accumulated amortization on Technology | (1,620,000 | ) | (1,421,938 | ) | |||||||
Accumulated amortization on Other Intangibles | (493,672 | ) | (493,672 | ) | |||||||
$ | 3,240,155 | $ | 3,919,327 | ||||||||
Property_Equipment_and_Softwar1
Property, Equipment and Software Development Costs (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Summary of Property, Equipment and Software Development Costs | Property, equipment and software development costs consisted of the following: | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Equipment | $ | 2,158,785 | $ | 2,054,346 | |||||
Furniture | 769,121 | 736,787 | |||||||
Leasehold improvements | 337,746 | 303,989 | |||||||
Software and Software development costs | 10,996,534 | 10,111,953 | |||||||
14,262,186 | 13,207,075 | ||||||||
Less accumulated depreciation and amortization | (11,981,693 | ) | (11,046,483 | ) | |||||
$ | 2,280,493 | $ | 2,160,592 | ||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Summary of Future Minimum Aggregate Annual Rentals | Minimum aggregate annual rentals for the future five-year periods and thereafter, subject to certain escalation clauses, through long-term operating leases are as follows: | ||||
Year ending December 31: | |||||
2015 | $ | 324,921 | |||
2016 | 308,373 | ||||
2017 | 309,150 | ||||
2018 | 313,133 | ||||
2019 | 264,853 | ||||
Thereafter | 244,607 | ||||
Total | $ | 1,765,037 | |||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Income Tax Disclosure [Abstract] | |||||||||
Provision (Benefit) for Income Taxes | The provision (benefit) for income taxes consisted of the following: | ||||||||
Years ended December 31, | |||||||||
2014 | 2013 | ||||||||
Income tax (benefit) expense: | |||||||||
Current provision | |||||||||
Federal | $ | 16,343 | $ | 17,487 | |||||
State | — | — | |||||||
Foreign | 489,831 | 590,011 | |||||||
Deferred | |||||||||
Federal | — | — | |||||||
State | — | — | |||||||
Foreign | (138,044 | ) | (135,184 | ) | |||||
Expense / (benefit) for income taxes | $ | 368,130 | $ | 472,314 | |||||
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of income tax expense (benefit) at the statutory rate to income tax expense (benefit) at the Company’s effective tax rate was as follows: | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Computed tax (benefit) / expense at the expected statutory rate | $ | 887,510 | $ | (214,369 | ) | ||||
Federal alternative minimum tax | 16,343 | 17,487 | |||||||
Permanent differences | 136,093 | 446,234 | |||||||
Foreign and state tax rate differential | (216,721 | ) | (193,388 | ) | |||||
Adjustment of prior year estimate and realized foreign currency translation | (153,161 | ) | 1,026,406 | ||||||
Uncertain tax position expense | 16,646 | 19,222 | |||||||
Changes in valuation allowance | (318,580 | ) | (629,278 | ) | |||||
$ | 368,130 | $ | 472,314 | ||||||
Components of the Overall Net Deferred Tax Assets | The components of the overall net deferred tax assets were as follows: | ||||||||
Years Ended December 31, | |||||||||
2014 | 2013 | ||||||||
Assets | |||||||||
Net operating losses | $ | 3,986,608 | $ | 4,607,851 | |||||
Allowance for doubtful accounts | 7,949 | 5,428 | |||||||
Vacation and bonus compensation and other accruals | 87,462 | 133,025 | |||||||
Property tax | 5,445 | 5,100 | |||||||
Stock options expensed | 159,055 | 72,997 | |||||||
Capital loss carryforward | 10,060 | 10,365 | |||||||
State depreciation adjustment | 2,901 | 3,401 | |||||||
Tax credit carryforward | 243,149 | 244,293 | |||||||
Total assets | $ | 4,502,629 | $ | 5,082,460 | |||||
Liabilities | |||||||||
Depreciation and amortization | (646,955 | ) | (676,146 | ) | |||||
Undistributed foreign earnings | (448,261 | ) | — | ||||||
Deferred revenue | (37,446 | ) | (37,191 | ) | |||||
Deferred acquisition intangibles | (107,605 | ) | (207,805 | ) | |||||
Total liabilities | (1,240,267 | ) | (921,142 | ) | |||||
Valuation allowance | (3,499,815 | ) | (4,554,587 | ) | |||||
Deferred tax liability, net | $ | (237,453 | ) | $ | (393,269 | ) | |||
Liability for Income Taxes Associated with Unrecognized Tax Benefits | The following is a rollforward of the Company’s liability for income taxes associated with unrecognized tax benefits: | ||||||||
Balance as of January 1, 2013 | $ | 123,406 | |||||||
Tax positions related to the current year: | |||||||||
Additions | 19,222 | ||||||||
Tax positions related to prior years: | |||||||||
Additions | 3,839 | ||||||||
Balance as of December 31, 2013 | 146,467 | ||||||||
Tax positions related to the current year: | |||||||||
Additions | 16,646 | ||||||||
Reductions | — | ||||||||
Tax positions related to prior years: | |||||||||
Reductions | (10,074 | ) | |||||||
Balance as of December 31, 2014 | $ | 153,039 | |||||||
Stock_Based_Compensation_Table
Stock Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||
Information with Respect to Options and RSU | Information with respect to options and RSU was as follows on the date indicated: | ||||||||||||||||||||
Options & | Exercise | Weighted | |||||||||||||||||||
RSU Shares | Price Range | Average | |||||||||||||||||||
Per Share | Exercise Price | ||||||||||||||||||||
Outstanding, December 31, 2012 | 5,691,350 | $ | 0.08 - $ 0.40 | $ | 0.25 | ||||||||||||||||
Granted | — | — | — | ||||||||||||||||||
Exercised | (174,000 | ) | $ | 0.21 | $ | 0.21 | |||||||||||||||
Cancelled | (265,250 | ) | $ | 0.08 - $ 0.225 | 0.17 | ||||||||||||||||
Outstanding, December 31, 2013 | 5,252,100 | $ | 0.08 - $ 0.40 | $ | 0.26 | ||||||||||||||||
Granted – RSUs | 1,129,820 | — | — | ||||||||||||||||||
Exercised | (36,666 | ) | $ | 0.08 - $ 0.23 | $ | 0.13 | |||||||||||||||
Cancelled | (533,508 | ) | $ | 0.00 - $ 0.34 | 0.23 | ||||||||||||||||
Outstanding, December 31, 2014 | 5,811,746 | $ | 0.00 - $ 0.40 | $ | 0.21 | ||||||||||||||||
Summary of Options Exercisable | The following table summarizes options exercisable at December 31: | ||||||||||||||||||||
Option | Exercise Price | Weighted | Aggregate | Weighted | |||||||||||||||||
Shares | Range | Average | Intrinsic | Remaining | |||||||||||||||||
Per Share | Exercise Price | Value | Contractual Term | ||||||||||||||||||
December 31, 2013 | 4,589,557 | $ | 0.08 - $0.40 | $ | 0.27 | $ | 455,066 | 4.05 years | |||||||||||||
December 31, 2014 | 4,434,914 | $ | 0.08 - $0.40 | $ | 0.27 | $ | 402,534 | 3.18 years | |||||||||||||
Summary of Non-Vested Options and RSUs | The following tables summarizes non-vested options and RSUs: | ||||||||||||||||||||
Option/RSU | |||||||||||||||||||||
Shares | |||||||||||||||||||||
31-Dec-13 | 662,543 | ||||||||||||||||||||
Granted | 1,129,820 | ||||||||||||||||||||
Cancelled | (71,225 | ) | |||||||||||||||||||
Vested | (344,306 | ) | |||||||||||||||||||
31-Dec-14 | 1,376,832 | ||||||||||||||||||||
Option | Weighted | Aggregate | Weighted | ||||||||||||||||||
Shares | Average | Intrinsic | Remaining | ||||||||||||||||||
Exercise Price | Value | Contractual Term | |||||||||||||||||||
December 31, 2013 | 662,543 | $ | 0.21 | $ | 98,409 | 8.47 years | |||||||||||||||
December 31, 2014 | 1,376,832 | $ | 0.04 | $ | 424,855 | 3.10 years | |||||||||||||||
Option Valuation Model Assumptions | The fair value of each option and RSUs 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 table below. | ||||||||||||||||||||
2014 | |||||||||||||||||||||
Risk-free interest rate | 0.5 | % | |||||||||||||||||||
Dividend yield | 0 | % | |||||||||||||||||||
Volatility factor | 91 | % | |||||||||||||||||||
Expected lives | 5 years |
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||
Financial Information Summarizing Reportable Segments | The following table presents selected financial results by business segment: | ||||||||||||||||
2014 | Electronic | Call | Corporate | Consolidated | |||||||||||||
Invoice | Accounting | Allocation | |||||||||||||||
Management | Management | ||||||||||||||||
and Recording | |||||||||||||||||
Revenues | $ | 9,220,444 | $ | 9,078,125 | $ | — | $ | 18,298,569 | |||||||||
Gross profit - Revenues less cost of products, excluding depreciation and amortization | 7,418,843 | 6,578,782 | — | 13,997,625 | |||||||||||||
Depreciation and amortization | 1,253,171 | 612,919 | 11,782 | 1,877,872 | |||||||||||||
Income (loss) from operations | 955,192 | 1,926,680 | (1,580,374 | ) | 1,301,498 | ||||||||||||
Long-lived assets | 4,104,828 | 1,356,620 | 88,418 | 5,549,866 | |||||||||||||
2013 | Electronic | Call | Corporate | Consolidated | |||||||||||||
Invoice | Accounting | Allocation | |||||||||||||||
Management | Management | ||||||||||||||||
and Recording | |||||||||||||||||
Revenues | $ | 9,869,250 | $ | 5,613,746 | $ | — | $ | 15,482,996 | |||||||||
Gross profit - Revenues less cost of products, excluding depreciation and amortization | 8,141,244 | 3,548,223 | — | 11,689,467 | |||||||||||||
Depreciation and amortization | 1,338,782 | 491,990 | 4,920 | 1,835,692 | |||||||||||||
Income (loss) from operations | 1,895,843 | (762,935 | ) | (1,753,994 | ) | (621,086 | ) | ||||||||||
Long-lived assets | 4,987,497 | 1,235,772 | 9,091 | 6,232,360 | |||||||||||||
Net Revenues by Geographic Location | The following table presents selected financial results by geographic location based on location of customer: | ||||||||||||||||
2014 | United States | United Kingdom | Consolidated | ||||||||||||||
Net revenues | $ | 6,039,025 | $ | 12,259,544 | $ | 18,298,569 | |||||||||||
Gross profit - Revenues less costs of products, excluding depreciation and amortization | 4,688,424 | 9,309,201 | 13,997,625 | ||||||||||||||
Depreciation and Amortization | 599,839 | 1,278,033 | 1,877,872 | ||||||||||||||
Income / (loss) from operations | (447,401 | ) | 1,748,899 | 1,301,498 | |||||||||||||
Long-lived assets | 4,631,488 | 918,378 | 5,549,866 | ||||||||||||||
2013 | United States | United Kingdom | Consolidated | ||||||||||||||
Net revenues | $ | 3,635,199 | $ | 11,847,797 | $ | 15,482,996 | |||||||||||
Gross profit - Revenues less costs of products, excluding depreciation and amortization | 2,544,480 | 9,144,987 | 11,689,467 | ||||||||||||||
Depreciation and Amortization | 492,357 | 1,343,335 | 1,835,692 | ||||||||||||||
Income / (loss) from operations | (2,419,567 | ) | 1,798,481 | (621,086 | ) | ||||||||||||
Long-lived assets | 5,254,715 | 977,645 | 6,232,360 |
Description_of_Business_and_Su3
Description of Business and Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Segment | ||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||
Number of business segment | 2 | |
Foreign Currency Transaction Gain (Loss) | $8,000 | ($60,000) |
Advertising expense | 3,175 | 1,275 |
Leasehold improvements amortization description | Leasehold improvements are amortized over the period of the lease or the useful lives of the improvements, whichever is shorter. | |
Amortization of Technology feasibility on product- product basis | 3 years | |
Software development cost | 935,808 | 1,093,776 |
Amortization expense of developed software | 775,503 | 734,369 |
Impairment on goodwill | 0 | 0 |
Specific days for selecting method of contract accounting | 30 days | |
Minimum specific days for selecting method of contract accounting | 30 days | |
Maximum percentage of tax benefit likely to be realized on examination | 50.00% | |
Cash deposit exceed by statutory limit | 5,025,584 | |
Bad debt write-off against allowances for doubtful accounts | 808 | 49,626 |
Research and development cost | $3,055,046 | $2,881,551 |
Class A Common Stock [Member] | ||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||
Number of Shares Underlying under warrant and stock options | 5,722,096 | |
Minimum [Member] | ||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||
Estimated useful life of furniture fixture | 3 years | |
Amortization of Technology feasibility on product- product basis | 3 years | |
Minimum [Member] | Class A Common Stock [Member] | ||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||
Exercise price of warrants and options | 0.08 | |
Maximum [Member] | ||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||
Estimated useful life of furniture fixture | 5 years | |
Amortization of Technology feasibility on product- product basis | 15 years | |
Maximum [Member] | Class A Common Stock [Member] | ||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||
Exercise price of warrants and options | 0.4 | |
Maximum [Member] | Class A Common Stock [Member] | Restricted Stock Units (RSUs) [Member] | ||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||
Right to receive maximum number of common stock | 1,126,820 |
Description_of_Business_and_Su4
Description of Business and Summary of Significant Accounting Policies - Allowance for Doubtful Accounts (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Beginning balance | $54,040 | $97,704 |
Provision | 16,327 | 1,118 |
Bad debt write-off | -808 | -49,626 |
Recovery of previously written-off accounts | 0 | 0 |
Exchange rate fluctuation | -2,853 | 4,844 |
Ending balance | $66,706 | $54,040 |
Description_of_Business_and_Su5
Description of Business and Summary of Significant Accounting Policies - Calculation of Basic and Diluted Earnings (Loss) Per Share (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share [Abstract] | ||
Net income / (loss) | $2,242,194 | ($1,102,810) |
Average shares of common stock outstanding used to compute basic earnings per share | 29,216,185 | 29,068,483 |
Additional common shares to be issued assuming exercise of stock options and restricted stock units | 2,472,898 | |
Average shares of common and common equivalent stock outstanding used to compute diluted earnings per share | 31,689,083 | 29,068,483 |
Net income / (loss) per share - Basic: | ||
Net income / (loss) per share | $0.08 | ($0.04) |
Weighted average common and common equivalent shares outstanding | 29,216,185 | 29,068,483 |
Net income / (loss) per share - Diluted: | ||
Net income / (loss) per share | $0.07 | ($0.04) |
Weighted average common and common equivalent shares outstanding | 31,689,083 | 29,068,483 |
Supplemental_Schedule_of_NonCa1
Supplemental Schedule of Non-Cash Investing and Financing Activities - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | ||
31-May-13 | Dec. 31, 2014 | Dec. 31, 2013 | 31-May-13 | |
Schedule Of Supplemental Cash Flow [Line Items] | ||||
Payment plan agreement | $166,600 | $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% | 6.30% | ||
Interest paid | 57,366 | 9,824 | ||
Foreign Tax Authority [Member] | ||||
Schedule Of Supplemental Cash Flow [Line Items] | ||||
Income taxes paid | 536,359 | 656,757 | ||
Domestic Tax Authority [Member] | ||||
Schedule Of Supplemental Cash Flow [Line Items] | ||||
Income taxes paid | 0 | 17,487 | ||
State and Local Jurisdiction [Member] | ||||
Schedule Of Supplemental Cash Flow [Line Items] | ||||
Income taxes paid | $0 | $0 |
Goodwill_and_Amortizable_Intan2
Goodwill and Amortizable Intangible Assets - Summary of Goodwill and Amortizable Intangible Assets (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill And Finite Lived Intangible Assets [Line Items] | ||
Weighted-Average Useful Lives | 3 years | |
Goodwill | $4,896,990 | $4,896,990 |
Intangible assets gross including goodwill | 11,767,475 | 11,767,475 |
Accumulated Goodwill impairment | -2,127,401 | -2,127,401 |
Total | 3,240,155 | 3,919,327 |
Trade Names [Member] | ||
Goodwill And Finite Lived Intangible Assets [Line Items] | ||
Weighted-Average Useful Lives | 9 years | |
Finite-lived intangible assets, Gross | 180,000 | 180,000 |
Finite-lived intangible assets, Accumulated amortization | -160,438 | -140,438 |
Customer Lists [Member] | ||
Goodwill And Finite Lived Intangible Assets [Line Items] | ||
Weighted-Average Useful Lives | 9 years | |
Finite-lived intangible assets, Gross | 4,576,813 | 4,576,813 |
Finite-lived intangible assets, Accumulated amortization | -4,125,809 | -3,664,699 |
Technology [Member] | ||
Goodwill And Finite Lived Intangible Assets [Line Items] | ||
Weighted-Average Useful Lives | 8 years | |
Finite-lived intangible assets, Gross | 1,620,000 | 1,620,000 |
Finite-lived intangible assets, Accumulated amortization | -1,620,000 | -1,421,938 |
Other Intangibles [Member] | ||
Goodwill And Finite Lived Intangible Assets [Line Items] | ||
Weighted-Average Useful Lives | 3 years | |
Finite-lived intangible assets, Gross | 493,672 | 493,672 |
Finite-lived intangible assets, Accumulated amortization | ($493,672) | ($493,672) |
Goodwill_and_Amortizable_Intan3
Goodwill and Amortizable Intangible Assets - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense on intangible assets | $679,172 | $683,611 |
2015 | 470,566 | |
Thereafter | $0 |
Property_Equipment_and_Softwar2
Property, Equipment and Software Development Costs - Summary of Property, Equipment and Software Development Costs (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Property, Plant and Equipment [Line Items] | ||
Gross | $14,262,186 | $13,207,075 |
Less accumulated depreciation and amortization | -11,981,693 | -11,046,483 |
Total | 2,280,493 | 2,160,592 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross | 2,158,785 | 2,054,346 |
Furniture [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross | 769,121 | 736,787 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross | 337,746 | 303,989 |
Software and Software Development Costs [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross | $10,996,534 | $10,111,953 |
Property_Equipment_and_Softwar3
Property, Equipment and Software Development Costs - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | ||
Cost of fully depreciated fixed assets, written off | $274,739 | $102,977 |
Amortization expense of developed software | 775,503 | 734,369 |
Accumulated amortization related to developed software | 8,229,879 | 7,454,376 |
Property, Equipment and Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Depreciation and amortization expense related to property, equipment and software | $1,198,700 | $1,152,081 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Summary of Future Minimum Aggregate Annual Rentals (Detail) (USD $) | Dec. 31, 2014 |
Commitments and Contingencies Disclosure [Abstract] | |
2015 | $324,921 |
2016 | 308,373 |
2017 | 309,150 |
2018 | 313,133 |
2019 | 264,853 |
Thereafter | 244,607 |
Total | $1,765,037 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | |
Oct. 30, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | |
Contingencies And Commitments [Line Items] | |||
Rent and lease expense | $432,993 | $407,435 | |
Litigation cost payable to Quest Corporation | 250,000 | ||
Cash received | 3,100,000 | ||
Legal fees | 1,800,000 | ||
Indianapolis [Member] | |||
Contingencies And Commitments [Line Items] | |||
Rent and lease expense | 257,010 | ||
Area of office space leases | 15,931 | ||
Expiry of lease | 2020-11 | ||
London [Member] | |||
Contingencies And Commitments [Line Items] | |||
Rent and lease expense | 53,500 | ||
Area of office space leases | 1,230 | ||
Expiry of lease | 2018-12 | ||
Blackburn [Member] | |||
Contingencies And Commitments [Line Items] | |||
Rent and lease expense | $128,000 | ||
Area of office space leases | 9,360 | ||
Expiry of lease | 2014-12 |
Debt_Obligations_and_Liquidity1
Debt Obligations and Liquidity - Additional Information (Detail) (USD $) | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | 31-May-13 | Dec. 31, 2012 | Oct. 30, 2013 | Mar. 12, 2015 | |
Debt Instrument [Line Items] | ||||||
Principal amount of promissory notes | $166,600 | |||||
Fixed rate of interest | 6.50% | |||||
Accrued interest | 9,548.51 | |||||
Working capital | 2,228,305 | |||||
Stockholders' equity | 6,661,477 | 4,227,144 | 5,258,237 | |||
Deferred Revenue Included in Current liabilities | 4,250,433 | 2,538,977 | ||||
Fairford Holdings Limited [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Percentage of proportion of interest accrued on maturity date | 80.00% | |||||
Michael Reinarts [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Percentage of proportion of interest accrued on maturity date | 10.00% | |||||
John Birbeck [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Percentage of proportion of interest accrued on maturity date | 10.00% | |||||
Promissory Note [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount of promissory notes | 1,400,000 | 1,400,000 | ||||
Class A Common Stock [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Expiry date of promissory note, description | The Company promised to pay to the Lenders, on demand made at any time following April 30, 2014, or if demand is not sooner made, on May 31, 2014 | |||||
Stockholders' equity | 293,889 | $293,523 | $291,783 | |||
Scenario, Forecast [Member] | Class A Common Stock [Member] | Fairford Holdings Limited [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Percentage of Company's outstanding Class A common stock beneficially owned by Fairford | 63.00% |
Income_Taxes_Provision_Benefit
Income Taxes - Provision (Benefit) for Income Taxes (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Current provision | ||
Federal | $16,343 | $17,487 |
State | 0 | 0 |
Foreign | 489,831 | 590,011 |
Deferred | ||
Federal | 0 | 0 |
State | 0 | 0 |
Foreign | -138,044 | -135,184 |
Expense / (benefit) for income taxes | $368,130 | $472,314 |
Income_Taxes_Schedule_of_Effec
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | ||
Computed tax (benefit) / expense at the expected statutory rate | $887,510 | ($214,369) |
Federal alternative minimum tax | 16,343 | 17,487 |
Permanent differences | 136,093 | 446,234 |
Foreign and state tax rate differential | -216,721 | -193,388 |
Adjustment of prior year estimate and realized foreign currency translation | -153,161 | 1,026,406 |
Uncertain tax position expense | 16,646 | 19,222 |
Changes in valuation allowance | -318,580 | -629,278 |
Expense / (benefit) for income taxes | $368,130 | $472,314 |
Income_Taxes_Components_of_the
Income Taxes - Components of the Overall Net Deferred Tax Assets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Assets | ||
Net operating losses | $3,986,608 | $4,607,851 |
Allowance for doubtful accounts | 7,949 | 5,428 |
Vacation and bonus compensation and other accruals | 87,462 | 133,025 |
Property tax | 5,445 | 5,100 |
Stock options expensed | 159,055 | 72,997 |
Capital loss carryforward | 10,060 | 10,365 |
State depreciation adjustment | 2,901 | 3,401 |
Tax credit carryforward | 243,149 | 244,293 |
Total assets | 4,502,629 | 5,082,460 |
Liabilities | ||
Depreciation and amortization | -646,955 | -676,146 |
Undistributed foreign earnings | -448,261 | |
Deferred revenue | -37,446 | -37,191 |
Deferred acquisition intangibles | -107,605 | -207,805 |
Total liabilities | -1,240,267 | -921,142 |
Valuation allowance | -3,499,815 | -4,554,587 |
Deferred tax liability, net | ($237,453) | ($393,269) |
Income_Taxes_Liability_for_Inc
Income Taxes - Liability for Income Taxes Associated with Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | ||
Beginning Balance | $146,467 | $123,406 |
Tax positions related to the current year: | ||
Additions | 16,646 | 19,222 |
Reductions | 0 | |
Tax positions related to prior years: | ||
Additions | 3,839 | |
Reductions | -10,074 | |
Ending Balance | $153,039 | $146,467 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Loss Carryforwards [Line Items] | ||
Amounts accrued for interest and penalties | 0 | $1,005 |
Available net operating losses | 9,643,137 | |
Tax credit carryforwards | 243,149 | 244,293 |
Valuation allowance of deferred tax assets | 3,499,815 | $4,554,587 |
Minimum [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforward, expiry year | 2017 | |
Tax credit carryforward, expiry year | 2017 | |
Maximum [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforward, expiry year | 2033 | |
Tax credit carryforward, expiry year | 2033 |
Stock_Based_Compensation_Addit
Stock Based Compensation - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2002 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Additional shares granted | 2,000,000 | ||
Minimum period after which no stock option granted under the Stock Incentive Plan | Later than ten years | ||
Options exercisable to purchase common stock | 4,434,914 | 4,589,557 | |
Future compensation costs related to non-vested options and RSUs | $173,730 | ||
Future costs recognized in 2015 | 92,468 | ||
Future costs recognized in 2016 | 60,455 | ||
Future costs recognized in 2017 | 20,806 | ||
Portion of stock-based compensation included in selling, general and administrative expense | 121,418 | 61,264 | |
Plan and Stock Incentive Plan Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options outstanding to purchase common stock | 4,434,926 | ||
Share available for grant | 1,483,838 | ||
Outside Plan Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options outstanding to purchase common stock | 250,000 | ||
Options exercisable to purchase common stock | 250,000 | ||
Selling, General and Administrative Expenses [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Portion of stock-based compensation included in selling, general and administrative expense | $121,418 | $61,264 | |
Class A Common Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum number of share granted under Stock Incentive Plan | 1,500,000 | ||
Shares reserved for awards | 6,000,000 | ||
Options outstanding to purchase common stock | 4,684,926 | ||
Options exercisable to purchase common stock | 4,184,914 | ||
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise period of stock options granted under the Plan | 1 year | ||
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise period of stock options granted under the Plan | 5 years | ||
Maximum [Member] | Class A Common Stock [Member] | Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Non-vested RSUs shares outstanding | 1,129,820 |
Stock_Based_Compensation_Infor
Stock Based Compensation - Information with Respect to Options and RSU (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Options & RSU Shares, Outstanding, Beginning balance | 5,252,100 | 5,691,350 |
Options & RSU Shares, Granted | 1,129,820 | |
Options & RSU Shares, Exercised | -36,666 | -174,000 |
Options & RSU Shares, Cancelled | -533,508 | -265,250 |
Options & RSU Shares, Outstanding, Ending balance | 5,811,746 | 5,252,100 |
Exercise Price Range Per Share, Lower range limit, Outstanding, Beginning balance | $0.08 | $0.08 |
Exercise Price Range Per Share, Lower range limit, Granted | $0 | $0 |
Exercise Price Range Per Share, Lower range limit, Exercised | $0.08 | $0.21 |
Exercise Price Range Per Share, Lower range limit, Cancelled | $0 | $0.08 |
Exercise Price Range Per Share, Lower range limit, Outstanding, Ending balance | $0 | $0.08 |
Exercise Price Range Per Share, Upper range limit, Outstanding, Beginning balance | $0.40 | $0.40 |
Exercise Price Range Per Share, Upper range limit, Granted | $0 | $0 |
Exercise Price Range Per Share, Upper range limit, Exercised | $0.23 | $0.21 |
Exercise Price Range Per Share, Upper range limit, Cancelled | $0.34 | $0.23 |
Exercise Price Range Per Share, Upper range limit, Outstanding, Ending balance | $0.40 | $0.40 |
Weighted Average Exercise Price, Outstanding, Beginning balance | $0.26 | $0.25 |
Weighted Average Exercise Price, Granted | $0 | $0 |
Weighted Average Exercise Price, Exercised | $0.13 | $0.21 |
Weighted Average Exercise Price, Cancelled | $0.23 | $0.17 |
Weighted Average Exercise Price, Outstanding, Ending balance | $0.21 | $0.26 |
Stock_Based_Compensation_Summa
Stock Based Compensation - Summary of Options Exercisable (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Option Shares | 4,434,914 | 4,589,557 |
Exercise Price Range Per Share, Lower range limit | $0.08 | $0.08 |
Exercise Price Range Per Share, Upper range limit | $0.40 | $0.40 |
Weighted Average Exercise Price | $0.27 | $0.27 |
Aggregate Intrinsic Value | $402,534 | $455,066 |
Weighted Remaining Contractual Term | 3 years 2 months 5 days | 4 years 18 days |
Stock_Based_Compensation_Summa1
Stock Based Compensation - Summary of Non-Vested Options and RSUs (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Non-vested options and RSUs, December 31, 2013 | 662,543 | |
Non-vested options and RSUs, Granted | 1,129,820 | |
Non-vested options and RSUs, Cancelled | -71,225 | |
Non-vested options and RSUs, Vested | -344,306 | |
Non-vested options and RSUs, December 31, 2014 | 1,376,832 | 662,543 |
Non-vested options and RSUs, Weighted Average Exercise Price | $0.04 | $0.21 |
Non-vested options and RSUs, Aggregate Intrinsic Value | $424,855 | $98,409 |
Non-vested options and RSUs, Weighted Remaining Contractual Term | 3 years 1 month 6 days | 8 years 5 months 19 days |
Stock_Based_Compensation_Optio
Stock Based Compensation - Option Valuation Model Assumptions (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Risk-free interest rate | 0.50% |
Dividend yield | 0.00% |
Volatility factor | 91.00% |
Expected lives | 5 years |
Major_Customers_Additional_Inf
Major Customers - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Revenue, Major Customer [Line Items] | ||
Trade accounts receivable from single customer | $3,577,866 | $3,236,772 |
Customer One [Member] | ||
Revenue, Major Customer [Line Items] | ||
Revenues from single customer | 3,611,949 | 3,381,441 |
Customer One [Member] | Revenues [Member] | ||
Revenue, Major Customer [Line Items] | ||
Percentage from single customer | 19.70% | 20.20% |
Customer One [Member] | Trade Accounts Receivable, Net [Member] | ||
Revenue, Major Customer [Line Items] | ||
Trade accounts receivable from single customer | $277,619 | $234,960 |
Customer One [Member] | Trade Accounts Receivable, Net [Member] | Accounts Receivable [Member] | ||
Revenue, Major Customer [Line Items] | ||
Percentage from single customer | 7.80% | 7.30% |
Retirement_Plan_Additional_Inf
Retirement Plan - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
United States [Member] | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Company matches participant contributions percentage | 100.00% | |
Company matches participant compensation percentage | 6.00% | |
Contributions by Company | $168,640 | $137,007 |
United Kingdom [Member] | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Company matches participant contributions percentage | 100.00% | |
Company matches participant compensation percentage | 6.00% | |
Contributions by Company | $243,197 | $210,325 |
Segment_Information_Additional
Segment Information - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Segment | |
Segment Reporting [Abstract] | |
Number of reportable business segments | 2 |
Segment_Information_Financial_
Segment Information - Financial Information Summarizing Reportable Segments (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | ||
Revenues | $18,298,569 | $15,482,996 |
Gross profit - Revenues less cost of products, excluding depreciation and amortization | 13,997,625 | 11,689,467 |
Depreciation and amortization | 1,877,872 | 1,835,692 |
Income (loss) from operations | 1,301,498 | -621,086 |
Long-lived assets | 5,549,866 | 6,232,360 |
Operating Segments [Member] | Electronic Invoice Management [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 9,220,444 | 9,869,250 |
Gross profit - Revenues less cost of products, excluding depreciation and amortization | 7,418,843 | 8,141,244 |
Depreciation and amortization | 1,253,171 | 1,338,782 |
Income (loss) from operations | 955,192 | 1,895,843 |
Long-lived assets | 4,104,828 | 4,987,497 |
Operating Segments [Member] | Call Accounting Management and Recording [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 9,078,125 | 5,613,746 |
Gross profit - Revenues less cost of products, excluding depreciation and amortization | 6,578,782 | 3,548,223 |
Depreciation and amortization | 612,919 | 491,990 |
Income (loss) from operations | 1,926,680 | -762,935 |
Long-lived assets | 1,356,620 | 1,235,772 |
Corporate Allocation [Member] | ||
Segment Reporting Information [Line Items] | ||
Depreciation and amortization | 11,782 | 4,920 |
Income (loss) from operations | -1,580,374 | -1,753,994 |
Long-lived assets | $88,418 | $9,091 |
Segment_Information_Net_Revenu
Segment Information - Net Revenues by Geographic Location (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | ||
Net revenues | $18,298,569 | $15,482,996 |
Gross profit - Revenues less costs of products, excluding depreciation and amortization | 13,997,625 | 11,689,467 |
Depreciation and amortization | 1,877,872 | 1,835,692 |
Income / (loss) from operations | 1,301,498 | -621,086 |
Long-lived assets | 5,549,866 | 6,232,360 |
United States [Member] | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 6,039,025 | 3,635,199 |
Gross profit - Revenues less costs of products, excluding depreciation and amortization | 4,688,424 | 2,544,480 |
Depreciation and amortization | 599,839 | 492,357 |
Income / (loss) from operations | -447,401 | -2,419,567 |
Long-lived assets | 4,631,488 | 5,254,715 |
United Kingdom [Member] | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 12,259,544 | 11,847,797 |
Gross profit - Revenues less costs of products, excluding depreciation and amortization | 9,309,201 | 9,144,987 |
Depreciation and amortization | 1,278,033 | 1,343,335 |
Income / (loss) from operations | 1,748,899 | 1,798,481 |
Long-lived assets | $918,378 | $977,645 |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (USD $) | 12 Months Ended | |||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 30, 2013 | 31-May-13 | Mar. 07, 2013 | Oct. 30, 2013 | Mar. 12, 2015 | |
Related Party Transaction [Line Items] | ||||||||
Principal amount of promissory notes | $166,600 | |||||||
Cash purchase price payable under proposal made by Related party to purchase common stock | $0.40 | $0.29 | ||||||
Fairford Holdings Limited [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Percentage of proportion of interest accrued on maturity date | 80.00% | |||||||
Michael Reinarts [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Percentage of proportion of interest accrued on maturity date | 10.00% | |||||||
John Birbeck [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Percentage of proportion of interest accrued on maturity date | 10.00% | |||||||
Board of Directors [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Board of Directors fees | 12,000 | 110,000 | ||||||
Board of Directors activities, expenses | 18,485 | 15,457 | ||||||
Chief Technology Officer [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Aggregate earned in total compensation | 161,389 | 148,468 | ||||||
Minimum [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Increased the number of directors | 6 | |||||||
Maximum [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Increased the number of directors | 7 | |||||||
Promissory Note [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Principal amount of promissory notes | 1,400,000 | 1,400,000 | ||||||
Amount of advanced received from lenders | $1,400,000 | |||||||
Class A Common Stock [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Expiry date of promissory note, description | The Company promised to pay to the Lenders, on demand made at any time following April 30, 2014, or if demand is not sooner made, on May 31, 2014 | |||||||
Class A Common Stock [Member] | Fairford Holdings Limited [Member] | Subsequent Event [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Percentage of Company's outstanding Class A common stock beneficially owned by Fairford | 63.00% | |||||||
Class A Common Stock [Member] | Restricted Stock Units (RSUs) [Member] | Mr. Reinarts and Mr. Rao [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Number of shares granted in stock option plan | 150,000 | |||||||
Option vesting period | 3 years | |||||||
Class A Common Stock [Member] | Restricted Stock Units (RSUs) [Member] | Mr.Birbeck [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Number of shares granted in stock option plan | 130,243 | |||||||
Class A Common Stock [Member] | Restricted Stock Units (RSUs) [Member] | Mr. Hanuschek [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Number of shares granted in stock option plan | 96,157 | |||||||
Class A Common Stock [Member] | Restricted Stock Units (RSUs) [Member] | Tranche One [Member] | Mr. Reinarts and Mr. Rao [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Number of shares granted in stock option plan | 100,000 | |||||||
Class A Common Stock [Member] | Restricted Stock Units (RSUs) [Member] | Tranche Two [Member] | Mr. Reinarts and Mr. Rao [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Number of shares granted in stock option plan | 50,000 |