Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 7-May-15 | |
Document And Entity Information | ||
Entity Registrant Name | ISSUER DIRECT CORP | |
Entity Central Index Key | 843006 | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Amendment Flag | FALSE | |
Current Fiscal Year End Date | -19 | |
Is Entity a Well-known Seasoned Issuer? | No | |
Is Entity a Voluntary Filer? | No | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 2,323,243 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2015 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $2,775,258 | $1,721,343 |
Accounts receivable, (net of allowance for doubtful accounts of $518,223 and $460,564, respectively) | 1,638,172 | 2,013,464 |
Deferred income tax asset - current | 91,118 | 7,290 |
Other current assets | 380,314 | 311,666 |
Total current assets | 4,884,862 | 4,053,763 |
Furniture, equipment and improvements, net | 145,431 | 145,384 |
Goodwill | 2,241,872 | 2,241,872 |
Intangible assets (net of accumulated amortization of $1,763,100 and $1,517,366, respectively) | 3,487,900 | 3,733,634 |
Other noncurrent assets | 27,997 | 28,286 |
Total assets | 10,788,062 | 10,202,939 |
Current liabilities: | ||
Accounts payable | 383,980 | 255,615 |
Accrued expenses | 1,193,973 | 1,105,122 |
Income Tax Payable | 133,023 | 135,533 |
Note payable - related party (net of debt discount of $327,062 and $535,397, respectively) | 1,339,611 | 1,131,276 |
Deferred revenue | 795,012 | 877,120 |
Total current liabilities | 3,845,599 | 3,504,666 |
Deferred tax liability | 508,330 | 633,778 |
Other long-term liabilities | 49,585 | 56,733 |
Total liabilities | 4,403,514 | 4,195,177 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, $0.001 par value, 30,000,000 shares authorized, no shares issued and outstanding as of March 31, 2015 and December 31, 2014 | 0 | 0 |
Common stock $0.001 par value,100,000,000 shares authorized, 2,318,243 and 2,316,743 shares issued and outstanding as of March 31, 2015 and December 31, 2014, respectively | 2,318 | 2,317 |
Additional paid-in capital | 5,857,312 | 5,725,470 |
Accumulated other comprehensive loss | -39,005 | -47,283 |
Retained earnings | 563,923 | 327,258 |
Total stockholders' equity | 6,384,548 | 6,007,762 |
Total liabilities and stockholders' equity | $10,788,062 | $10,202,939 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Assets | ||
Allowance for Accounts Receivables | $518,223 | $460,564 |
Accumulated Amortization | 1,763,100 | 1,517,366 |
Liabilities | ||
Debt Discount | $327,062 | $535,397 |
Stockholders Equity | ||
Preferred Stock shares par value | $0.00 | $0.00 |
Preferred Stock shares Authorized | 30,000,000 | 30,000,000 |
Preferred Stock shares Issued | 0 | 0 |
Preferred Stock shares Outstanding | 0 | 0 |
Common Stock shares par value | $0.00 | $0.00 |
Common Stock shares Authorized | 100,000,000 | 100,000,000 |
Common Stock shares Issued | 2,318,243 | 2,316,743 |
Common Stock shares Outstanding | 2,318,243 | 2,316,743 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Income Statement [Abstract] | ||
Revenues | $3,043,782 | $3,494,356 |
Cost of services | 912,877 | 1,027,591 |
Gross profit | 2,130,905 | 2,466,765 |
Operating costs and expenses: | ||
General and administrative | 879,782 | 1,286,253 |
Sales and marketing expenses | 566,056 | 445,612 |
Product development | 98,632 | 77,911 |
Depreciation and amortization | 268,341 | 281,866 |
Total operating costs and expenses | 1,812,811 | 2,091,642 |
Operating income | 318,094 | 375,123 |
Net interest expense | -244,850 | -362,055 |
Net income before income taxes | 73,244 | 13,068 |
Income tax benefit (expense) | 163,421 | -50,010 |
Net income (loss) | $236,665 | ($36,942) |
Income (loss) per share - basic | $0.10 | ($0.02) |
Income (loss) per share - fully diluted | $0.10 | ($0.02) |
Weighted average number of common shares outstanding - basic | 2,317,110 | 2,016,240 |
Weighted average number of common shares outstanding - fully diluted | 2,360,540 | 2,016,240 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Consolidated Statements Of Comprehensive Income Loss | ||
Net income (loss) | $236,665 | ($36,942) |
Foreign currency translation adjustment | 8,278 | -6,534 |
Comprehensive income (loss) | $244,943 | ($43,476) |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Cash flows from operating activities: | ||
Net income (loss) | $236,665 | ($36,942) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 268,341 | 281,866 |
Bad debt expense | 76,937 | 104,980 |
Deferred income taxes | -209,777 | -165 |
Stock-based expense | 131,844 | 191,201 |
Non-cash interest expense | 208,335 | 312,500 |
Changes in operating assets and liabilities: | ||
Decrease (increase) in accounts receivable | 292,362 | -326,813 |
Decrease (increase) in deposits and other current assets | -68,747 | -279,751 |
Increase (decrease) in accounts payable | 130,102 | 26,656 |
Increase (decrease) in accrued expenses | 87,081 | -169,070 |
Increase (decrease) in deferred revenue | -74,111 | -82,831 |
Net cash provided by operating activities | 1,079,032 | 21,631 |
Cash flows from investing activities: | ||
Purchase of property and equipment | -22,344 | -8,134 |
Net cash used in investing activities | -22,344 | -8,134 |
Cash flows from financing activities: | ||
Proceeds from exercise of stock options | 0 | 97,816 |
Net cash provided by financing activities | 0 | 97,816 |
Net change in cash | 1,056,688 | 111,313 |
Cash - beginning | 1,721,343 | 1,713,479 |
Currency translation adjustment | -2,773 | -3,808 |
Cash - ending | 2,775,258 | 1,820,984 |
Supplemental disclosures: | ||
Cash paid for interest | 19,906 | 50,000 |
Cash paid for income taxes | $34,500 | $331,000 |
Note_1_Basis_of_Presentation
Note 1. Basis of Presentation | 3 Months Ended |
Mar. 31, 2015 | |
Notes to Financial Statements | |
Basis of Presentation | The unaudited interim consolidated balance sheet as of March 31, 2015 and statements of operations, of comprehensive income (loss), and of cash flows for the three month period ended March 31, 2015 and 2014 included herein, have been prepared in accordance with the instructions for Form 10-Q under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Article 10 of Regulation S-X under the Exchange Act. In the opinion of management, they include all normal recurring adjustments necessary for a fair presentation of the financial statements. Results of operations reported for the interim periods are not necessarily indicative of results for the entire year. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to such rules and regulations relating to interim financial statements. The interim financial information should be read in conjunction with 2014 audited financial statements of Issuer Direct Corporation (the “Company”, “We”, or “Our”) filed on Form 10-K. |
Note_2_Summary_of_Significant_
Note 2. Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2015 | |
Notes to Financial Statements | |
Summary of Significant Accounting Policies | The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. Significant intercompany accounts and transactions are eliminated in consolidation. |
Earnings (loss) per Share (EPS) | |
We calculate EPS in accordance with Financial Accounting Standards Board (FASB) ASC No. 260 – EPS, which requires that basic net income per common share be computed by dividing net income for the period by the weighted average number of common shares outstanding during the period. Diluted net income per share is computed by dividing the net income for the period by the weighted average number of common and dilutive common equivalent shares outstanding during the period. Shares issuable upon the exercise of stock options totaling 258,171 and 26,000 restricted stock units were included in the computation of diluted earnings per common share during the three month period ended March 31, 2015 to the extent they represented dilutive common stock equivalents. Shares issuable upon the exercise of stock options totaling 282,486 were excluded in the computation of diluted earnings per common share during the three month period ended March 31, 2014 because their impact was anti-dilutive. The Company has a convertible note outstanding as of March 31, 2015 that can be converted into 417,712 shares of common stock, which were excluded from the calculation of diluted EPS, as the impact is anti-dilutive. | |
Reclassifications | |
The Company has reclassified certain amounts as previously reported as general and administrative expenses to product development expenses, in order to conform with current year presentation. This reclassification has no impact on revenue, net income, assets, liabilities, shareholders’ equity, or earnings per share. In particular, the Company is now presenting product development cost as a separate line on the consolidated statement of operations, whereas they were previously included in general and administrative expenses. | |
Revenue Recognition | |
We recognize revenue in accordance with SEC Staff Accounting Bulletin No. 104, “Revenue Recognition,” which requires that: (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred or services have been rendered, (iii) the sales price is fixed or determinable, and (iv) collectability is reasonably assured. We recognize revenue when services are rendered or delivered, and where collectability is probable. Deferred revenue primarily consists of upfront payments for annual service contracts, and is recognized throughout the year as the services are performed. | |
Allowance for Doubtful Accounts | |
We provide an allowance for doubtful accounts, which is based upon a review of outstanding receivables as well as historical collection information. Credit is granted on an unsecured basis. In determining the amount of the allowance, management is required to make certain estimates and assumptions. The allowance is made up of specific reserves, as deemed necessary, on client account balances, and a reserve based on our historical experience. | |
Use of Estimates | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include the allowance for doubtful accounts and the valuation of goodwill and intangible assets, deferred tax assets, and stock based compensation. Actual results could differ from those estimates. | |
Income Taxes | |
We comply with FASB ASC No. 740 – Income Taxes which requires an asset and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed for differences between the financial statement and tax bases of assets and liabilities that will result in future taxable or deductible amounts based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred income tax assets to the amounts expected to be realized. For any uncertain tax positions, we recognize the impact of a tax position, only if it is more likely than not of being sustained upon examination, based on the technical merits of the position. Our policy regarding the classification of interest and penalties is to classify them as income tax expense in our financial statements, if applicable. At the end of each interim period, we estimate the effective tax rate we expect to be applicable for the full fiscal year and this rate is applied to our results for the interim year-to-date period, and then adjusted for any discrete period items. | |
Fair Value Measurements | |
As of March 31, 2015 and December 31, 2014, we do not have any financial assets or liabilities that are required to be, or that we elected to measure, at fair value. We believe that the fair value of our financial instruments, which consist of cash and cash equivalents, accounts receivable, our line of credit, notes payable, and accounts payable approximate their carrying amounts. | |
Translation of Foreign Financial Statements | |
The financial statements of the foreign subsidiaries of the Company have been translated into U.S. dollars. All assets and liabilities have been translated at current rates of exchange in effect at the end of the fiscal period. Income and expense items have been translated at the average exchange rates for the period. The gains or losses that result from this process are recorded as a separate component of stockholder's equity until the entity is sold or substantially liquidated. | |
Goodwill | |
Goodwill results from business acquisitions and represents the excess of the purchase price over the fair value of acquired tangible assets and liabilities and identifiable intangible assets. Goodwill is assessed at least annually for impairment, and any such impairment will be recognized in the period identified. | |
Comprehensive Income (Loss) | |
Comprehensive income (loss) consists of net income (loss) and other comprehensive income (loss) related to changes in the cumulative foreign currency translation adjustment. | |
Business Combinations and Intangible Assets | |
We account for our business combinations in accordance with the authoritative guidance for business combinations, and the related acquired intangible assets and goodwill in accordance with the authoritative guidance for intangibles — goodwill and other. The authoritative guidance for business combinations specifies the accounting for business combinations and the criteria for recognizing and reporting intangible assets apart from goodwill. We record the assets acquired and liabilities assumed in business combinations at their respective fair values at the date of acquisition, with any excess purchase price recorded as goodwill. Intangible assets consist of client relationships, customer lists, software, technology and trademarks that are initially measured at fair value. The trademarks have an indefinite life and are not amortized. The trademarks are assessed annually for impairment, or whenever conditions indicate the asset may be impaired, and any such impairment will be recognized in the period identified. The client relationships, customer lists, software and technology are amortized over their estimated useful lives. | |
Advertising | |
The Company expenses advertising costs as incurred, except for direct-response advertising, which is capitalized and amortized over its expected period of future benefits. | |
Stock-based compensation | |
We account for stock-based compensation under FASB ASC No. 718 – Compensation – Stock Compensation. The authoritative guidance for stock compensation requires that companies estimate the fair value of share-based payment awards on the date of the grant using an option-pricing model. The cost is to be recognized over the period during which an employee is required to provide service in exchange for the award. The authoritative guidance for stock compensation also requires the benefit of tax deductions in excess of recognized compensation expense to be reported as a financing cash flow, rather than as an operating cash flow as prescribed under previous accounting rules. This requirement reduces net operating cash flows and increases net financing cash flows in periods subsequent to adoption, only if excess tax benefits exist. | |
Recent Accounting Pronouncements | |
The FASB has issued Accounting Standards Update (“ASU”) 2015-01, Income Statement - Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items. The FASB issued this ASU as part of its initiative to reduce complexity in accounting standards. The objective of the simplification initiative is to identify, evaluate, and improve areas of U.S. GAAP for which cost and complexity can be reduced while maintaining or improving the usefulness of the information provided to the users of financial statements. The amendments in ASU 2015-01 are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The Company does not anticipate that ASU 2015-01 will have a significant impact on their financial statements. | |
The FASB has issued ASU 2014-16, Derivatives and Hedging (Topic 815): Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity. The amendments in this ASU do not change the current criteria in U.S. GAAP for determining when separation of certain embedded derivative features in a hybrid financial instrument is required. The amendments clarify how current U.S. GAAP should be interpreted in evaluating the economic characteristics and risks of a host contract in a hybrid financial instrument that is issued in the form of a share. Specifically, the amendments clarify that an entity should consider all relevant terms and features, including the embedded derivative feature being evaluated for bifurcation, in evaluating the nature of the host contract. Furthermore, the amendments clarify that no single term or feature would necessarily determine the economic characteristics and risks of the host contract. Rather, the nature of the host contract depends upon the economic characteristics and risks of the entire hybrid financial instrument. The amendments in this ASU are effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The Company does not anticipate that ASU 2014-16 will have a significant impact on their financial statements. | |
The FASB has issued ASU 2014-12, Compensation – Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. The issue is the result of a consensus of the FASB Emerging Issues Task Force (EITF). The amendments in the ASU require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Topic 718, Compensation – Stock Compensation, as it relates to awards with performance conditions that affect vesting to account for such awards. The performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. The total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. The Company will apply the provisions of ASU 2014-12 to any future performance based stock awards, but does not anticipate that the impact will have a significant impact on their financial statements. | |
The FASB has issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). ASU 2014-09 requires revenue recognition to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 sets forth a new revenue recognition model that requires identifying the contract, identifying the performance obligations, determining the transaction price, allocating the transaction price to performance obligations and recognizing the revenue upon satisfaction of performance obligations. The amendments in the ASU can be applied either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the update recognized at the date of the initial application along with additional disclosures. The Company is currently evaluating the impact of ASU 2014-09, which is currently effective for the Company in our fiscal year beginning on January 1, 2018. |
Note_3_Intangible_Assets_and_G
Note 3. Intangible Assets and Goodwill | 3 Months Ended | |||||
Mar. 31, 2015 | ||||||
Notes to Financial Statements | ||||||
Intangible Assets and Goodwill | Acquisition of Accesswire | |||||
On October 29, 2014, the Company completed its acquisition of all of the assets relating to the “Accesswire” business (as defined below) owned and operated by Baystreet.ca Media Corp., a British Columbia company (“Baystreet”) for consideration totaling $1,840,000. Accesswire is a corporate news and content distribution and dissemination business (“Accesswire”). In consideration of the assets related to Accesswire, the Company paid to Baystreet on the closing date the following: (i) $1,700,000 in cash from the Company’s current cash reserves and (ii) 15,385 shares of the Company’s common stock with a value of $140,000 based on the Company’s stock price at the time of closing. | ||||||
During the year ended December 31, 2014, the Company employed a third party valuation firm to assist in determining the purchase price allocation of assets acquired from Accesswire. The income approach was used to determine the value of Accesswire’s trademarks and client relationships. The income approach determines the fair value for the asset based on the present value of cash flows projected to be generated by the asset. Projected cash flows are discounted at a rate of return that reflects the relative risk of achieving the cash flow and the time value of money. Projected cash flows for each asset considered multiple factors, including current revenue from existing customers; analysis of expected revenue and attrition trends; reasonable contract renewal assumptions from the perspective of a marketplace participant; expected profit margins giving consideration to marketplace synergies; and required returns to contributory assets. The cost approach was used to determine the value of Accesswire’s technology. The cost approach is based on replacement cost as an indicator of value. It assumes that a prudent investor would pay no more for an asset than the amount for which it could be replaced new. Further, to the extent a particular asset provides less utility than a new one, its value will be less than its replacement cost new. To account for this difference, the replacement cost new is adjusted for losses in value that is, depreciated. No liabilities or tangible assets were assumed. | ||||||
The transaction resulted in recording intangible assets and goodwill at a fair value of $1,840,000 as follows: | ||||||
Total Consideration | $ | 1,840,000 | ||||
Allocation of Accesswire intangible assets and goodwill: | ||||||
Amortizable intangible assets | $ | 423,000 | ||||
Trademarks | 232,000 | |||||
Goodwill | 1,185,000 | |||||
Total fair value of Accesswire intangible assets and goodwill | $ | 1,840,000 | ||||
The identifiable amortizable intangible assets created as a result of the acquisition will be amortized straight line over their estimated useful life as follows: | ||||||
Asset Amount | Useful Life (years) | |||||
Client relationships | $ | 242,000 | 7 | |||
Software | 181,000 | 5 | ||||
$ | 423,000 | |||||
The Company has elected not to provide unaudited pro forma financial information for the Accesswire acquisition, as management determined that providing useful, accurate pro-forma information would be impracticable, and because the acquisition was not considered a significant acquisition in accordance with Rule 3-05 of the SEC's Regulation S-X. Because the Accesswire news distribution service was just one of many services offered by Baystreet Media ca., separate financial information was not maintained, and creating separate financials statements would include too many estimates and assumptions to be portrayed as useful and accurate. |
Note_4_Stockholders_Equity
Note 4. Stockholders' Equity | 3 Months Ended |
Mar. 31, 2015 | |
Notes to Financial Statements | |
Stockholders' Equity | 2014 Equity Incentive Plan |
On May 23, 2014, the shareholders of the Company approved the 2014 Equity Incentive Plan (the “2014 Plan”). Under the terms of the 2014 Plan, the Company is authorized to issue incentive awards for common stock up to 200,000 shares to employees and other personnel. The awards may be in the form of incentive stock options, nonqualified stock options, restricted stock, restricted stock units and performance awards. The 2014 Plan is effective through March 31, 2024. As of March 31, 2015, 40,000 awards had been issued under the 2014 Plan. |
Note_5_Stock_Options
Note 5. Stock Options | 3 Months Ended | |||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||
Notes to Financial Statements | ||||||||||||||||||
Stock Options | The following table summarizes information about stock options outstanding and exercisable at March 31, 2015: | |||||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||||
Exercise Price Range | Number | Weighted Average Remaining Contractual Life (in Years) | Weighted Average Exercise Price | Number | ||||||||||||||
$0.01 - $1.00 | 19,700 | 6.81 | $ | 0.01 | 19,700 | |||||||||||||
$1.01 - $2.00 | 4,550 | 6.15 | $ | 1.7 | 4,550 | |||||||||||||
$2.01 - $3.00 | 27,171 | 3.65 | $ | 2.57 | 14,671 | |||||||||||||
$3.01 - $4.00 | 14,000 | 7 | $ | 3.33 | 14,000 | |||||||||||||
$4.01 - $8.00 | 98,750 | 6.07 | $ | 7.76 | 36,250 | |||||||||||||
$8.01 - $9.00 | 40,000 | 3.39 | $ | 8.25 | 17,500 | |||||||||||||
$9.01 - $10.00 | 14,000 | 9.74 | $ | 9.26 | 0 | |||||||||||||
$10.01 - $13.49 | 40,000 | 3.95 | $ | 13.49 | 10,000 | |||||||||||||
Total | 258,171 | 5.38 | $ | 7.32 | 116,671 | |||||||||||||
As of March 31, 2015, the Company had unrecognized stock compensation related to the options of $1,223,411. |
Note_6_Income_taxes
Note 6. Income taxes | 3 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income taxes | We recognized income tax benefit of $163,421 during the three-month period ended March 31, 2015 and income tax expense of $50,010 during the three-month period ended March 31, 2014, based on our projections of future profitability. The variation between the Company’s estimated annual effective tax rate and the US Statutory rate of 34% is due primarily to state income taxes, non-deductible expenses related to stock compensation, foreign rate differentials, and non-cash interest. |
During the three-month period ended March 31, 2015, the Company released a portion of its valuation allowance related to federal and state net operating losses, which resulted in a net benefit of $210,370. The tax benefits from US net operating losses that were previously reserved were acquired from the acquisition of PrecisionIR (PIR). At the date of acquisition, management believed it was more likely than not that the benefits would not be used due to the uncertainty of future profitability and also due to statutory limitations on the amount of net operating losses that can be carried forward in an acquisition. During the three-month period ended March 31, 2015, the Company performed a detailed analysis to determine its ability to utilize the tax benefits and determined that portions of the tax benefits could be used. Therefore, the Company released portions of the reserve related to tax years through 2015 based on current best estimates of profitability. |
Note_7_Operations_and_Concentr
Note 7. Operations and Concentrations | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Notes to Financial Statements | |||||||
Operations and Concentrations | For the three-month periods ended March 31, 2015 and 2014, we earned revenues (as a percentage of total revenues) in the following categories: | ||||||
Three months ended | |||||||
March 31, | |||||||
Revenue Streams | 2015 | 2014 | |||||
Disclosure management | 23.80% | 27.10% | |||||
Shareholder communications | 67.80% | 65.00% | |||||
Platform & technology | 8.40% | 7.90% | |||||
Total | 100.00% | 100.00% | |||||
No customers accounted for more than 10% of the operating revenues during the three-month periods ended March 31, 2015 or 2014. We did not have any customers that comprised more than 10% of our total accounts receivable balances at March 31, 2015 or December 31, 2014. | |||||||
We do not believe we had any financial instruments that could have potentially subjected us to significant concentrations of credit risk. A portion of our revenues are paid at the beginning of the month via credit card or in advance by check, the remaining accounts receivable amounts are generally due within 30 days. |
Note_8_Line_of_Credit
Note 8. Line of Credit | 3 Months Ended |
Mar. 31, 2015 | |
Notes to Financial Statements | |
Line of Credit | Effective September 2, 2014, the Company renewed its Line of Credit and increased the amount of funds available to 80% of eligible accounts receivable, as defined in the line of credit agreement, up to a maximum of $2,000,000. The interest rate was also reduced to LIBOR plus 3.0%, and therefore was 3.18% at March 31, 2015. The Company did not owe any amounts on the Line of Credit at March 31, 2015 and had approximately $907,000 remaining for future borrowings under the Line of Credit based on the calculation of eligible accounts receivable. |
Note_9_Note_Payable_Related_Pa
Note 9. Note Payable - Related Party | 3 Months Ended |
Mar. 31, 2015 | |
Debt Disclosure [Abstract] | |
Note Payable - Related Party | On August 22, 2013, in connection with and to partially fund the acquisition and simultaneously with the Acquisition of PIR, the Company entered into a Securities Purchase Agreement (the “8% Note Purchase Agreement”) relating to the sale of $2,500,000 aggregate principal amount of the Company’s 8% convertible secured promissory note (“8% Note”) with Red Oak Partners LP (“Red Oak”). The 8% Note pays interest on each of March 31, June 30, September 30 and December 31, beginning on September 30, 2013, at a rate of 8% per year. The 8% Note will mature on August 22, 2015. If an event of default occurs pursuant to the terms of the 8% Note, the interest rate immediately increases to 18%. The 8% Note is secured by all of the assets of the Company and is subordinated to the Company’s obligations to its primary financial institution. Furthermore, in connection with the 8% Note Purchase Agreement, a partner of Red Oak was appointed to the Company’s Board of Directors. On November 10, 2014, Red Oak assigned the 8% Note between the Red Oak Fund, LP; Pinnacle Opportunities, LP; and the Red Oak Long Fund, LP; all of which are under management by Red Oak. |
Beginning immediately upon the date of issuance, Red Oak or its assignees may convert the 8% Note into shares of the Company’s common stock at a conversion price of $3.99 per share. The conversion price will be adjusted for certain events, such as stock dividends and stock splits. On the date the Company entered into the 8% Note Purchase Agreement, the Company’s stock price was $8.20 per share, and therefore the Company assigned a value of $2,500,000 to the common stock conversion feature and recorded this as debt discount and additional paid-in capital. This instrument also created a deferred tax liability of $1,000,000 that reduced the value recorded as additional paid in capital, and therefore the net amount recorded to stockholders' equity was $1,500,000. The debt discount of $2,500,000 will be amortized over the two-year life of the loan as non-cash interest expense, unless the note is converted early, in which case the debt discount will be accelerated. | |
On November 12, 2014, Red Oak converted $833,327 of principal and $23,369 of accrued interest payable on the 8% Note into 214,710 shares of the Company’s common stock at the conversion price of $3.99. Following this transaction, the principal balance of the note was $1,666,673. As a result of this transaction, the company recorded $323,250 of non-cash interest expense due to the acceleration of debt discount on the portion of the 8% Note that was converted. | |
During the three month periods ended March 31, 2015 and 2014, the Company recorded non-cash interest expense of $208,335 and $312,500, respectively. During the three month periods ended March 31, 2015 and 2014, the Company recorded cash interest expense of $33,333 and $50,000, respectively. |
Note_10_Geographical_Informati
Note 10. Geographical Information | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Segment Reporting [Abstract] | |||||||||
Geographical Information | We consider ourselves to be in a single reportable segment under the authoritative guidance for segment reporting, specifically a disclosure management and targeted communications company for publicly traded companies. Revenue is attributed to a particular geographic region based on where the services are performed. The following tables set forth revenues by domestic versus international regions: | ||||||||
Three months ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Geographic region | |||||||||
North America | $ | 2,473,314 | $ | 2,745,206 | |||||
Europe | 570,468 | 749,150 | |||||||
Total revenues | $ | 3,043,782 | $ | 3,494,356 |
Note_2_Summary_of_Significant_1
Note 2. Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Notes to Financial Statements | |
Earnings (loss) per Share (EPS) | We calculate EPS in accordance with Financial Accounting Standards Board (FASB) ASC No. 260 – EPS, which requires that basic net income per common share be computed by dividing net income for the period by the weighted average number of common shares outstanding during the period. Diluted net income per share is computed by dividing the net income for the period by the weighted average number of common and dilutive common equivalent shares outstanding during the period. Shares issuable upon the exercise of stock options totaling 258,171 and 26,000 restricted stock units were included in the computation of diluted earnings per common share during the three month period ended March 31, 2015 to the extent they represented dilutive common stock equivalents. Shares issuable upon the exercise of stock options totaling 282,486 were excluded in the computation of diluted earnings per common share during the three month period ended March 31, 2014 because their impact was anti-dilutive. The Company has a convertible note outstanding as of March 31, 2015 that can be converted into 417,712 shares of common stock, which were excluded from the calculation of diluted EPS, as the impact is anti-dilutive. |
Reclassifications | The Company has reclassified certain amounts as previously reported as general and administrative expenses to product development expenses, in order to conform with current year presentation. This reclassification has no impact on revenue, net income, assets, liabilities, shareholders’ equity, or earnings per share. In particular, the Company is now presenting product development cost as a separate line on the consolidated statement of operations, whereas they were previously included in general and administrative expenses. |
Revenue Recognition | We recognize revenue in accordance with SEC Staff Accounting Bulletin No. 104, “Revenue Recognition,” which requires that: (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred or services have been rendered, (iii) the sales price is fixed or determinable, and (iv) collectability is reasonably assured. We recognize revenue when services are rendered or delivered, and where collectability is probable. Deferred revenue primarily consists of upfront payments for annual service contracts, and is recognized throughout the year as the services are performed. |
Allowance for Doubtful Accounts | We provide an allowance for doubtful accounts, which is based upon a review of outstanding receivables as well as historical collection information. Credit is granted on an unsecured basis. In determining the amount of the allowance, management is required to make certain estimates and assumptions. The allowance is made up of specific reserves, as deemed necessary, on client account balances, and a reserve based on our historical experience. |
Use of Estimates | The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include the allowance for doubtful accounts and the valuation of goodwill and intangible assets, deferred tax assets, and stock based compensation. Actual results could differ from those estimates. |
Income Taxes | We comply with FASB ASC No. 740 – Income Taxes which requires an asset and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed for differences between the financial statement and tax bases of assets and liabilities that will result in future taxable or deductible amounts based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred income tax assets to the amounts expected to be realized. For any uncertain tax positions, we recognize the impact of a tax position, only if it is more likely than not of being sustained upon examination, based on the technical merits of the position. Our policy regarding the classification of interest and penalties is to classify them as income tax expense in our financial statements, if applicable. At the end of each interim period, we estimate the effective tax rate we expect to be applicable for the full fiscal year and this rate is applied to our results for the interim year-to-date period, and then adjusted for any discrete period items. |
Fair Value Measurements | As of March 31, 2015 and December 31, 2014, we do not have any financial assets or liabilities that are required to be, or that we elected to measure, at fair value. We believe that the fair value of our financial instruments, which consist of cash and cash equivalents, accounts receivable, our line of credit, notes payable, and accounts payable approximate their carrying amounts. |
Translation of Foreign Financial Statements | The financial statements of the foreign subsidiaries of the Company have been translated into U.S. dollars. All assets and liabilities have been translated at current rates of exchange in effect at the end of the fiscal period. Income and expense items have been translated at the average exchange rates for the period. The gains or losses that result from this process are recorded as a separate component of stockholder's equity until the entity is sold or substantially liquidated. |
Goodwill | Goodwill results from business acquisitions and represents the excess of the purchase price over the fair value of acquired tangible assets and liabilities and identifiable intangible assets. Goodwill is assessed at least annually for impairment, and any such impairment will be recognized in the period identified. |
Comprehensive Income (Loss) | Comprehensive income (loss) consists of net income (loss) and other comprehensive income (loss) related to changes in the cumulative foreign currency translation adjustment. |
Business Combinations and Intangible Assets | We account for our business combinations in accordance with the authoritative guidance for business combinations, and the related acquired intangible assets and goodwill in accordance with the authoritative guidance for intangibles — goodwill and other. The authoritative guidance for business combinations specifies the accounting for business combinations and the criteria for recognizing and reporting intangible assets apart from goodwill. We record the assets acquired and liabilities assumed in business combinations at their respective fair values at the date of acquisition, with any excess purchase price recorded as goodwill. Intangible assets consist of client relationships, customer lists, software, technology and trademarks that are initially measured at fair value. The trademarks have an indefinite life and are not amortized. The trademarks are assessed annually for impairment, or whenever conditions indicate the asset may be impaired, and any such impairment will be recognized in the period identified. The client relationships, customer lists, software and technology are amortized over their estimated useful lives. |
Advertising | The Company expenses advertising costs as incurred, except for direct-response advertising, which is capitalized and amortized over its expected period of future benefits. |
Stock-based compensation | We account for stock-based compensation under FASB ASC No. 718 – Compensation – Stock Compensation. The authoritative guidance for stock compensation requires that companies estimate the fair value of share-based payment awards on the date of the grant using an option-pricing model. The cost is to be recognized over the period during which an employee is required to provide service in exchange for the award. The authoritative guidance for stock compensation also requires the benefit of tax deductions in excess of recognized compensation expense to be reported as a financing cash flow, rather than as an operating cash flow as prescribed under previous accounting rules. This requirement reduces net operating cash flows and increases net financing cash flows in periods subsequent to adoption, only if excess tax benefits exist. |
Recent Accounting Pronouncements | The FASB has issued Accounting Standards Update (“ASU”) 2015-01, Income Statement - Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items. The FASB issued this ASU as part of its initiative to reduce complexity in accounting standards. The objective of the simplification initiative is to identify, evaluate, and improve areas of U.S. GAAP for which cost and complexity can be reduced while maintaining or improving the usefulness of the information provided to the users of financial statements. The amendments in ASU 2015-01 are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The Company does not anticipate that ASU 2015-01 will have a significant impact on their financial statements. |
The FASB has issued ASU 2014-16, Derivatives and Hedging (Topic 815): Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity. The amendments in this ASU do not change the current criteria in U.S. GAAP for determining when separation of certain embedded derivative features in a hybrid financial instrument is required. The amendments clarify how current U.S. GAAP should be interpreted in evaluating the economic characteristics and risks of a host contract in a hybrid financial instrument that is issued in the form of a share. Specifically, the amendments clarify that an entity should consider all relevant terms and features, including the embedded derivative feature being evaluated for bifurcation, in evaluating the nature of the host contract. Furthermore, the amendments clarify that no single term or feature would necessarily determine the economic characteristics and risks of the host contract. Rather, the nature of the host contract depends upon the economic characteristics and risks of the entire hybrid financial instrument. The amendments in this ASU are effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The Company does not anticipate that ASU 2014-16 will have a significant impact on their financial statements. | |
The FASB has issued ASU 2014-12, Compensation – Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. The issue is the result of a consensus of the FASB Emerging Issues Task Force (EITF). The amendments in the ASU require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Topic 718, Compensation – Stock Compensation, as it relates to awards with performance conditions that affect vesting to account for such awards. The performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. The total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. The Company will apply the provisions of ASU 2014-12 to any future performance based stock awards, but does not anticipate that the impact will have a significant impact on their financial statements. | |
The FASB has issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). ASU 2014-09 requires revenue recognition to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 sets forth a new revenue recognition model that requires identifying the contract, identifying the performance obligations, determining the transaction price, allocating the transaction price to performance obligations and recognizing the revenue upon satisfaction of performance obligations. The amendments in the ASU can be applied either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the update recognized at the date of the initial application along with additional disclosures. The Company is currently evaluating the impact of ASU 2014-09, which is currently effective for the Company in our fiscal year beginning on January 1, 2018. |
Note_3_Intangible_Assets_and_G1
Note 3. Intangible Assets and Goodwill (Tables) | 3 Months Ended | |||||
Mar. 31, 2015 | ||||||
Note 3. Intangible Assets And Goodwill Tables | ||||||
Fair value of intangible assets and goodwill | Total Consideration | $ | 1,840,000 | |||
Allocation of Accesswire intangible assets and goodwill: | ||||||
Amortizable intangible assets | $ | 423,000 | ||||
Trademarks | 232,000 | |||||
Goodwill | 1,185,000 | |||||
Total fair value of Accesswire intangible assets and goodwill | $ | 1,840,000 | ||||
Amortizable intangible assets | Asset Amount | Useful Life (years) | ||||
Client relationships | $ | 242,000 | 7 | |||
Software | 181,000 | 5 | ||||
$ | 423,000 |
Note_5_Stock_Options_Tables
Note 5. Stock Options (Tables) | 3 Months Ended | |||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||
Notes to Financial Statements | ||||||||||||||||||
Schedule Of Stock Options | Options Outstanding | Options Exercisable | ||||||||||||||||
Exercise Price Range | Number | Weighted Average Remaining Contractual Life (in Years) | Weighted Average Exercise Price | Number | ||||||||||||||
$0.01 - $1.00 | 19,700 | 6.81 | $ | 0.01 | 19,700 | |||||||||||||
$1.01 - $2.00 | 4,550 | 6.15 | $ | 1.7 | 4,550 | |||||||||||||
$2.01 - $3.00 | 27,171 | 3.65 | $ | 2.57 | 14,671 | |||||||||||||
$3.01 - $4.00 | 14,000 | 7 | $ | 3.33 | 14,000 | |||||||||||||
$4.01 - $8.00 | 98,750 | 6.07 | $ | 7.76 | 36,250 | |||||||||||||
$8.01 - $9.00 | 40,000 | 3.39 | $ | 8.25 | 17,500 | |||||||||||||
$9.01 - $10.00 | 14,000 | 9.74 | $ | 9.26 | 0 | |||||||||||||
$10.01 - $13.49 | 40,000 | 3.95 | $ | 13.49 | 10,000 | |||||||||||||
Total | 258,171 | 5.38 | $ | 7.32 | 116,671 |
Note_7_Operations_and_Concentr1
Note 7. Operations and Concentrations (Tables) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Notes to Financial Statements | |||||||
Concentration of revenue as a percentage of total revenue | Three months ended | ||||||
March 31, | |||||||
Revenue Streams | 2015 | 2014 | |||||
Disclosure management | 23.80% | 27.10% | |||||
Shareholder communications | 67.80% | 65.00% | |||||
Platform & technology | 8.40% | 7.90% | |||||
Total | 100.00% | 100.00% |
Note_10_Geographical_Informati1
Note 10. Geographical Information (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Segment Reporting [Abstract] | |||||||||
Revenue based on geographic region | Three months ended | ||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Geographic region | |||||||||
North America | $ | 2,473,314 | $ | 2,745,206 | |||||
Europe | 570,468 | 749,150 | |||||||
Total revenues | $ | 3,043,782 | $ | 3,494,356 |
Note_2_Summary_of_Significant_2
Note 2. Summary of Significant Accounting Policies (Details Narrative) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Stock Options | ||
Shares issuable included in computation of diluted earnings per share | 258,171 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share | 282,486 | |
Restricted stock units | ||
Shares issuable included in computation of diluted earnings per share | 26,000 | |
Convertible Note | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share | 417,712 |
Note_3_Intangible_Assets_and_G2
Note 3. Intangible Assets and Goodwill (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | |
Allocation of Accesswire intangible assets and goodwill: | ||
Amortizable intangible assets | $423,000 | |
Goodwill | 2,241,872 | 2,241,872 |
Accesswire | ||
Total Consideration | 1,840,000 | |
Allocation of Accesswire intangible assets and goodwill: | ||
Amortizable intangible assets | 423,000 | |
Trademarks | 232,000 | |
Goodwill | 1,185,000 | |
Total fair value of Accesswire intangible assets and goodwill | $1,840,000 |
Note_3_Intangible_Assets_and_G3
Note 3. Intangible Assets and Goodwill (Details 1) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Asset Amount | $423,000 |
Client relationships | |
Asset Amount | 242,000 |
Useful Life (years) | 7 years |
Software | |
Asset Amount | $181,000 |
Useful Life (years) | 5 years |
Note_5_Stock_Options_Details
Note 5. Stock Options (Details) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Option 1 | |
Exercise Price Range | 0.01 - $1.00 |
Number of Options Outstanding | 19,700 |
Weighted Average Remaining Contractual Life (in Years) | 6 years 9 months 22 days |
Weighted Average Exercise Price | $0.01 |
Number of Options Exercisable | 19,700 |
Option 2 | |
Exercise Price Range | 1.01 - $2.00 |
Number of Options Outstanding | 4,550 |
Weighted Average Remaining Contractual Life (in Years) | 6 years 1 month 24 days |
Weighted Average Exercise Price | $1.70 |
Number of Options Exercisable | 4,550 |
Option 3 | |
Exercise Price Range | 2.01 - $3.00 |
Number of Options Outstanding | 27,171 |
Weighted Average Remaining Contractual Life (in Years) | 3 years 7 months 24 days |
Weighted Average Exercise Price | $2.57 |
Number of Options Exercisable | 14,671 |
Option 4 | |
Exercise Price Range | 3.01 - $4.00 |
Number of Options Outstanding | 14,000 |
Weighted Average Remaining Contractual Life (in Years) | 7 years |
Weighted Average Exercise Price | $3.33 |
Number of Options Exercisable | 14,000 |
Option 5 | |
Exercise Price Range | 4.01 - $8.00 |
Number of Options Outstanding | 98,750 |
Weighted Average Remaining Contractual Life (in Years) | 6 years 25 days |
Weighted Average Exercise Price | $7.76 |
Number of Options Exercisable | 36,250 |
Option 6 | |
Exercise Price Range | 8.00 - $9.00 |
Number of Options Outstanding | 40,000 |
Weighted Average Remaining Contractual Life (in Years) | 3 years 4 months 20 days |
Weighted Average Exercise Price | $8.25 |
Number of Options Exercisable | 17,500 |
Option 7 | |
Exercise Price Range | 9.01 - $10.00 |
Number of Options Outstanding | 14,000 |
Weighted Average Remaining Contractual Life (in Years) | 9 years 8 months 27 days |
Weighted Average Exercise Price | $9.26 |
Number of Options Exercisable | 0 |
Option 8 | |
Exercise Price Range | 10.01-$13.49 |
Number of Options Outstanding | 40,000 |
Weighted Average Remaining Contractual Life (in Years) | 3 years 11 months 16 days |
Weighted Average Exercise Price | $13.49 |
Number of Options Exercisable | 10,000 |
Total | |
Number of Options Outstanding | 258,171 |
Weighted Average Remaining Contractual Life (in Years) | 5 years 4 months 17 days |
Weighted Average Exercise Price | $7.32 |
Number of Options Exercisable | 116,671 |
Note_5_Stock_Options_Details_N
Note 5. Stock Options (Details Narrative) (USD $) | Mar. 31, 2015 |
Note 5. Stock Options Details Narrative | |
Unrecognized Compensation Expense | $1,223,411 |
Note_6_Income_taxes_Details_Na
Note 6. Income taxes (Details Narrative) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Note 6. Income Taxes Details Narrative | ||
Income tax benefit (expense) | $163,421 | ($50,010) |
Business Combination, Valuation Allowance, Available to Reduce Income Tax Expense | $210,370 |
Note_7_Concentration_of_revenu
Note 7. Concentration of revenue as a percentage of total revenue (Details) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Percentage of revenue from various revenue streams | 100.00% | 100.00% |
Disclosure management | ||
Percentage of revenue from various revenue streams | 23.80% | 27.10% |
Shareholder communications | ||
Percentage of revenue from various revenue streams | 67.80% | 65.00% |
Platform & technology | ||
Percentage of revenue from various revenue streams | 8.40% | 7.90% |
Note_8_Line_of_Credit_Details_
Note 8. Line of Credit (Details Narrative) (USD $) | Mar. 31, 2015 |
Notes to Financial Statements | |
Line of Credit, amount outstanding | $0 |
Line Of Credit, Remaining Borrowing Capacity | $907,000 |
Note_9_Note_Payable_Related_Pa1
Note 9. Note Payable - Related Party (Details Narrative) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Note 9. Note Payable - Related Party Details Narrative | ||
Non-cash interest expense | $208,335 | $312,500 |
Interest expense | $33,333 | $50,000 |
Note_10_Geographic_Operating_I
Note 10. Geographic Operating Information (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Revenues | $3,043,782 | $3,494,356 |
North America | ||
Revenues | 2,473,314 | 2,745,206 |
Europe | ||
Revenues | $570,468 | $749,150 |