Infinite (IMCI) 10-K 31 Mar 17 2016 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2016	Mar. 30, 2017	Jun. 30, 2016
Document And Entity Information
Entity Registrant Name	INFINITE GROUP INC
Entity Central Index Key	884,650
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Trading Symbol	IMCI
Entity Common Stock, Shares Outstanding		29,061,883
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2016
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,016
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Public Float			$ 550,000

BALANCE SHEETS

BALANCE SHEETS - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Current assets:
Cash	$ 42,436	$ 13,510
Accounts receivable, net of allowances of $70,000	243,477	117,010
Prepaid expenses and other current assets	16,076	17,629
Total current assets	301,989	148,149
Property and equipment, net	26,079	39,273
Software, net	105,000	153,000
Deposits	8,985	2,318
Total assets	442,053	342,740
Current liabilities:
Accounts payable	346,701	501,588
Accrued payroll	219,454	192,246
Accrued interest payable	671,437	583,005
Accrued retirement	225,720	216,913
Accrued expenses - other	81,754	101,388
Current maturities of long-term obligations	836,999	262,000
Current maturities of long-term obligations- related party	0	16,979
Note payable	368,279	72,000
Notes payable - related parties	0	119,776
Total current liabilities	2,750,344	2,065,895
Notes payable:
Other	1,150,225	1,246,999
Related parties	534,326	786,711
Total liabilities	4,434,895	4,099,605
Commitments (Note 14)
Stockholders' deficiency:
Common stock, $.001 par value, 60,000,000 shares authorized; issued and outstanding: 29,061,883 shares and 26,561,883 shares at December 31, 2016 and 2015, respectively	29,061	26,561
Additional paid-in capital	30,562,618	30,476,095
Accumulated deficit	(34,584,521)	(34,259,521)
Total stockholders' deficiency	(3,992,842)	(3,756,865)
Total liabilities and stockholders' deficiency	$ 442,053	$ 342,740

BALANCE SHEETS (PARENTHETICAL)

BALANCE SHEETS (PARENTHETICAL) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Consolidated Balance Sheets [Parenthetical] [Abstract]
Allowances for accounts receivable (in dollars)	$ 70,000	$ 70,000
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	60,000,000	60,000,000
Common stock, shares issued	29,061,883	26,561,883
Common stock, shares outstanding	29,061,883	26,561,883

STATEMENTS OF OPERATIONS

STATEMENTS OF OPERATIONS - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Income Statement [Abstract]
Sales	$ 7,413,366	$ 7,945,921
Cost of sales	5,323,415	5,994,857
Gross profit	2,089,951	1,951,064
Costs and expenses:
General and administrative	1,218,040	1,518,958
Selling	946,740	887,445
Total costs and expenses	2,164,780	2,406,403
Operating loss	(74,829)	(455,339)
Loss on investment	0	(109,000)
Interest expense:
Related parties	(55,332)	(78,403)
Other	(194,839)	(168,340)
Total interest expense	(250,171)	(246,743)
Net loss	$ (325,000)	$ (811,082)
Net loss per share - basic and diluted	$ (.01)	$ (0.03)
Weighted average number of shares outstanding:
Weighted average shares outstanding – basic and diluted	28,358,331	26,561,883

STATEMENTS OF STOCKHOLDERS' EQU

STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIENCY) - USD ($)	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Total
Balance at Dec. 31, 2014	$ 26,561	$ 30,422,242	$ (33,448,439)	$ (2,999,636)
Balance (in shares) at Dec. 31, 2014	26,561,883
Stock based compensation	$ 0	53,853	0	53,853
Net (loss) income	0	0	(811,082)	(811,082)
Balance at Dec. 31, 2015	$ 26,561	30,476,095	(34,259,521)	(3,756,865)
Balance (in shares) at Dec. 31, 2015	26,561,883
Stock based compensation		36,803		36,803
Shares issued as new loan fee	$ 2,500	35,000		37,500
Shares issued as new loan fee (in shares)	2,500,000
Stock options issued as loan extension fee		14,720		14,720
Net (loss) income			(325,000)	(325,000)
Balance at Dec. 31, 2016	$ 29,061	$ 30,562,618	$ (34,584,521)	$ (3,992,842)
Balance (in shares) at Dec. 31, 2016	29,061,883

STATEMENTS OF CASH FLOWS

STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Cash flows from operating activities:
Net (loss) income	$ (325,000)	$ (811,082)
Adjustments to reconcile net loss to net cash provided (used) by operating activities:
Stock based compensation	36,803	53,853
Depreciation and amortization	91,621	68,897
Bad debt expense on note receivable	0	110,000
Loss on investment	0	109,000
(Increase) decrease in assets:
Accounts receivable	(126,467)	132,589
Prepaid expenses and other assets	(5,114)	8,705
Increase (decrease) in liabilities:
Accounts payable	(154,887)	159,612
Accrued expenses	96,006	165,819
Accrued retirement	8,807	8,464
Net cash provided (used) by operating activities	(378,231)	5,857
Cash flows from investing activities:
Purchase of software	0	(100,000)
Purchases of property and equipment	(8,383)	(3,812)
Net cash used by investing activities	(8,383)	(103,812)
Cash flows from financing activities:
Proceeds from note payable	500,000	0
Repayments of notes payable	(54,268)	(52,407)
Proceeds from note payable - related parties	0	225,000
Repayments of notes payable - related parties	(30,192)	(68,896)
Net cash provided(used)by financing activities	415,540	103,697
Net increase in cash	28,926	5,742
Cash - beginning of year	13,510	7,768
Cash - end of year	42,436	13,510
Supplemental Disclosures of Cash Flow Information:
Interest	$ 139,228	$ 151,589

BASIS OF PRESENTATION

BASIS OF PRESENTATION	12 Months Ended
	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BASIS OF PRESENTATION	The accompanying financial statements consist of the financial statements of Infinite Group, Inc. (the Company). The Company operates in one segment, the field of information technology (IT) consulting services, with all operations based in the United States. There were no sales from customers in foreign countries during 2016 and 2015 and all assets are located in the United States. Certain projects required employees to travel to foreign countries during 2015.

MANAGEMENT PLANS

MANAGEMENT PLANS	12 Months Ended
	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
MANAGEMENT PLANS	The Company reported net losses of $325,000 in 2016 and $811,082 in 2015 and stockholders’ deficiencies of $3,992,842 and $3,756,865 at December 31, 2016 and 2015, respectively. Accordingly, there is substantial doubt about the Company’s ability to continue as a going concern through March 31, 2018. The Company’s business strategy is summarized as follows. The Company’s strategy is to build its business by designing, developing, and marketing IT security based products and solutions that fill technology gaps in cybersecurity. The Company brought one product to market and intends to bring other proprietary products and solutions to market through a channel of domestic and international partners and distributors. The products and solutions are designed to simplify the security needs in customer and partner environments, with a focus on small and medium sized enterprises (SMEs). The Company enables its partners by providing recurring revenue based business models that use its automated plug and play solutions. Products may be sold as standalone solutions or integrated into existing environments to further automate the management of security and related IT functions. The Company’s ability to succeed depends on how successful it is in differentiating itself in the market at a time when competition in these markets is on the rise. The Company works with its partner, Webroot, to increase its base of channel partners and to increase sales of Webroot’s cloud based endpoint security solution, which the objective of growing its recurring revenue model. The Company’s cybersecurity services business is conducted within its professional services organization (PSO). The Company provides services and technical resources to support both its channel partners and end customers. The Company’s goal is to expand its VMware business in both the public and commercial sector by building VMware license sales volume and services concurrently. The Company is working to expand its managed services business with its current federal enterprise customer and with other customers of Hewlett Packard Enterprise Company (HPE). The Company reviews potential acquisitions of IT assets and businesses as part of its growth strategy. Product - Nodeware is used to eliminate security gaps for SMEs. It creates an opportunity for resellers, including managed service providers, managed security service providers, distributors, and value added resellers. The Company sells Nodeware in the commercial sector through its current channel partners. The Company present its Nodeware solution to its existing Webroot channel partners and potential new partners in North America and in certain foreign countries. Technology and Product Development - Cybersecurity Services - Continue to Improve Operations and Capital Resources The Company's goal is to increase sales and generate cash flow from operations on a consistent basis. The Company uses a formal financial review and budgeting process as a tool for improvement that has aided expense reduction and internal performance. The Company’s business plans require improving the results of its operations in future periods. The Company reduced its net loss by approximately $250,000 (excluding one-time bad debt expense and investment losses totaling $229,000) by reducing operating costs and improving its profit margin. During 2016, the Company raised $500,000 of additional working capital to build the infrastructure to market its new Nodeware cybersecurity product. On September 30, 2016, the Company extended the scheduled maturity of its $400,000 unsecured line of credit financing agreement (the “LOC Agreement”) with a member of its board of directors (“Board”) from December 31, 2017 to January 1, 2020. The Company also extended the maturity dates of notes payable of $146,300 and $264,000 from January 1, 2017 to January 1, 2020. In August 2016, the Company completed a revised financing agreement with its financial institution resulting in a reduction of its financing rate and an increase in its advance rate. The Company believes the capital resources available under its factoring line of credit, cash from additional related party and third party loans and cash generated by improving the results of its operations provide sources to fund its ongoing operations and to support the internal growth of the Company. Although the Company has no assurances, the Company believes that related parties, who have previously provided working capital, and third parties will continue to provide working capital loans on similar terms, as in the past, as may be necessary to fund its on-going operations for at least the next 12 months. If the Company experiences significant growth in its sales, the Company believes that this may require it to increase its financing line, finance additional accounts receivable, or obtain additional working capital from other sources to support its sales growth.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Accounts Receivable - Concentration of Credit Risk Loan Origination Fees Sale of Certain Accounts Receivable - These transactions qualify for a sale of assets since (1) the Company has transferred all of its right, title and interest in the selected accounts receivable invoices to the financial institution, (2) the Purchaser may pledge, sell or transfer the selected accounts receivable invoices, and (3) the Company has no effective control over the selected accounts receivable invoices since it is not entitled to or obligated to repurchase or redeem the invoices before their maturity and it does not have the ability to unilaterally cause the Purchaser to return the invoices. Under FASB ASC 860, after a transfer of financial assets, an entity recognizes the financial and servicing assets it controls and the liabilities it has incurred, derecognizes financial assets when control has been surrendered, and derecognizes liabilities when extinguished. Pursuant to the provisions of FASB ASC 860, the Company reflects the transactions as a sale of assets and establishes an accounts receivable from the Purchaser for the retained amount less the costs of the transaction and less any anticipated future loss in the value of the retained asset. During 2015 and through August 28, 2016, the retained amount was equal to 15% of the total accounts receivable invoice sold to the Purchaser. The fee was charged at prime plus 4% against the average daily outstanding balance of funds advanced. On August 29, 2016, the Company completed a revised financing agreement with the Purchaser. The retained amount was revised to 10% of the total accounts receivable invoice sold to the Purchaser. The fee is charged at prime plus 3.6% (effective rate of 7.35% at December 31, 2016) against the average daily outstanding balance of funds advanced. The estimated future loss reserve for each receivable included in the estimated value of the retained asset is based on the payment history of the accounts receivable customer and is included in the allowance for doubtful accounts, if any. As collateral, the Company granted the Purchaser a first priority interest in accounts receivable and a blanket lien, which may be junior to other creditors, on all other assets. The financing line provides the Company the ability to finance up to $2,000,000 of selected accounts receivable invoices, which includes a sublimit for one of the Company’s customers of $1,500,000. During the year ended December 31, 2016, the Company sold approximately $5,924,000 ($7,065,000 - 2015) of its accounts receivable to the Purchaser. As of December 31, 2016, $328,390 ($566,561 - 2015) of these receivables remained outstanding. Additionally, as of December 31, 2016, the Company had approximately $143,000 available under the financing line with the financial institution ($20,000 - 2015). After deducting estimated fees and advances from the Purchaser, the net receivable from the Purchaser amounted to $31,462 at December 31, 2016 ($82,341 - 2015), and is included in accounts receivable in the accompanying balance sheets as of that date. There were no gains or losses on the sale of the accounts receivable because all were collected. The cost associated with the financing line totaled approximately $67,000 for the year ended December 31, 2016 ($79,000 - 2015). These financing line fees are classified on the statements of operations as interest expense. Property and Equipment - Accounting for the Impairment or Disposal of Long-Lived Assets - Revenue Recognition - During 2016, sales to one client, including sales under subcontracts for services to several entities, accounted for 60.5% of total sales (60.1% - 2015) and 34.0% of accounts receivable at December 31, 2016 (29.1% - 2015). Sales to another client, which consisted of sales under subcontracts, accounted for 22.4% of sales in 2016 (25.7% - 2015) and 28.5% of accounts receivable at December 31, 2016 (36.2% - 2015). Equity Instruments - - Stock Options - Income Taxes - The Company periodically reviews tax positions taken to determine if it is more likely than not that the position would be sustained upon examination. The Company did not have any material unrecognized tax benefit at December 31, 2016 or 2015. The Company recognizes accrued interest and penalties related to unrecognized tax benefits in tax expense. During the years ended December 31, 2016 and 2015, the Company recognized no interest and penalties. The Company files U.S. federal tax returns and tax returns in various states. The tax years 2013 through 2016 remain open to examination by the taxing jurisdictions to which the Company is subject. Fair Value of Financial Instruments - Level 1 uses observable inputs such as quoted prices in active markets; Level 2 uses inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3 is defined as unobservable inputs in which little or no market data exist and requires the Company to develop its own assumptions. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The carrying amounts of cash, accounts receivable and accounts payable and accrued expenses are reasonable estimates of their fair value due to their short maturity. Based on the borrowing rates currently available to the Company for loans similar to its term debt and notes payable, the fair value approximates the carrying amounts. Earnings Per Share - The following table sets forth the computation of basic and diluted loss per share as of December 31, 2016 and 2015: Years ended December 31, 2016 2015 Numerator for basic and diluted net loss per share: Net loss $ (325,000 ) $ (811,082 ) Denominator for basic and diluted net loss per share: Weighted average common shares outstanding 28,358,331 26,561,883 Basic and diluted net loss per share $ (.01 ) $ (.03 ) Anti-dilutive shares excluded from net loss per share 28,645,507 28,286,546 Certain common shares issuable under stock options and convertible notes payable have been omitted from the diluted net loss per share calculation because their inclusion is considered anti-dilutive because the exercise prices were greater than the average market price of the common shares or their inclusion would have been anti-dilutive. Equity Investments Reclassifications - Use of Estimates - Recently Adopted Accounting Pronouncements - Recently Issued Accounting Pronouncements - ● ASU No. 2016-12 “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients” was issued in May 2016. ASU No. 2016-12 amends the new revenue recognition standard to clarify the guidance on assessing collectability, presenting sales taxes, measuring noncash consideration, and certain transition matters. ● ASU No. 2016-10 “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing” was issued in April 2016. ASU No. 2016-10 addresses implementation issues identified by the FASB-International Accounting Standards Board Joint Transition Resource Group for Revenue Recognition. ● ASU No. 2016-08 “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net)” was issued in March 2016. ASU No. 2016-08 requires an entity to determine whether the nature of its promise to provide goods or services to a customer is performed in a principal or agent capacity and to recognize revenue in a gross or net manner based on its principal/agent designation. The Company is currently evaluating the effect the updated standard will have on its financial statements and related disclosures but does not expect the adoption to have a significant impact. In November 2015, the FASB issued new accounting guidance on the classification of deferred taxes. The new guidance requires that all deferred tax asset and liabilities be classified as noncurrent in a classified statement of financial position. This guidance is effective for financial statements issued for fiscal years beginning after December 15, 2016 and interim periods within those fiscal years. Early application is permitted. When the guidance is effective all deferred tax assets and liabilities will be presented as noncurrent. The Company does not believe this guidance will have a material effect on the Company’s financial statements when adopted. In February 2016, the FASB issued amended guidance for lease arrangements to increase transparency and comparability by providing additional information to users of financial statements regarding an entity's leasing activities. The revised guidance seeks to achieve this objective by requiring reporting entities to recognize lease assets and lease liabilities on the balance sheet for substantially all lease arrangements. The guidance, which is required to be adopted in the first quarter of 2019, will be applied on a modified retrospective basis beginning with the earliest period presented. Early adoption is permitted. The Company will evaluate the effect that this standard will have on its financial statements and related disclosures.

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	12 Months Ended
	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	Property and equipment consists of: December 31, Depreciable Lives 2016 2015 Software 3 years $ 34,934 $ 29,004 Equipment 3 to 10 years 123,621 158,851 Furniture and fixtures 5 to 7 years 17,735 17,735 Leasehold improvements 3 years 0 5,874 176,290 211,464 Accumulated depreciation (150,211 ) (172,191 ) $ 26,079 $ 39,273 Depreciation expense was $21,044 and $24,578 for the years ended December 31, 2016 and 2015, respectively.

SOFTWARE

SOFTWARE	12 Months Ended
	Dec. 31, 2016
Research and Development [Abstract]
SOFTWARE	On February 6, 2015, the Company purchased all rights to cyber security network vulnerability assessment reporting software (the “Software”). Under the purchase agreement, the Company agreed to pay the Seller the base purchase price of $180,000, of which $100,000 was paid in cash at the closing and the remaining $80,000 of which was paid by delivery at the closing of the Company’s secured promissory note. As security for its obligations under the promissory note, the Company granted the Seller a security interest in the Software. After April 7, 2015, the note accrues interest at 10% per annum. The remaining balance of $20,000 was payable on the note on June 30, 2016 but was not paid then although the balance was subsequently reduced by $7,500. To date, the Seller has not taken any action to collect the amount past due on the note or to enforce the security interest in the Software. At December 31, 2016, the total principal amount payable under the note is $12,500 with accrued interest payable of $7,215. The asset cost of $180,000 is amortized over the estimated useful life. Amortization expense is estimated to be $105,000 in 2017. Under the purchase agreement, in addition to the base purchase price, the Company also agreed to pay the Seller: (i) a percentage of the licensing fees paid to the Company within three years after the closing date; provided, that the maximum amount payable to the Seller with respect to that three-year period is $800,000; plus (ii) a percentage of the licensing fees paid to the Company during the three years beginning on the date, if any, on which the aggregate amount of the licensing fees paid to Seller with respect to the initial three-year period equals $800,000. The Company has no plans to license this software and accordingly there were no royalties earned or payable for the years ended December 31, 2016 and 2015.

INVESTMENT

INVESTMENT	12 Months Ended
	Dec. 31, 2016
Investments, Debt and Equity Securities [Abstract]
INVESTMENT	During 2014 and 2013, the Company purchased 300,000 shares of the authorized but unissued shares of Series A Convertible Preferred Stock (“Series A stock”), $.001 par value, of Sudo.me Corporation (goSudo) for an aggregate purchase price of $300,000 pursuant to the terms and conditions of a preferred stock purchase agreement. As a result, at December 31 2016, the Company owns approximately 9.4% of the total outstanding shares of goSudo. During 2015, the investment was written down using the equity method because of the net losses recorded by goSudo. In addition, the remaining carrying value of the investment was considered impaired at December 31, 2015 due to continued net losses of goSudo. During 2015, the accounts receivable balance of $110,000 due from goSudo was converted to a demand note with interest at 10% and was fully reserved upon conversion, due to continued net losses of goSudo. As a result, a loss on investment of $109,000 and bad debt expense of $110,000 were recorded during 2015. During 2016 and 2015, goSudo earned consulting fees of $0 and $76,766, respectively, from the Company.

LOAN FEES

LOAN FEES	12 Months Ended
	Dec. 31, 2016
Loan Fees
LOAN FEES	On December 1, 2014, the Company entered into an unsecured line of credit financing agreement with a member of its Board. The Company paid an origination fee consisting of (i) 600,000 shares of its common stock valued at $30,000 and (ii) options to purchase 600,000 shares of its common stock at an exercise price of $.05 valued at $23,400 using the Black-Scholes option-pricing model all of which were immediately vested. On September 30, 2016, the note maturity date was extended from December 31, 2017 to January 1, 2020. As consideration for extending the maturity date, the Company granted the lender an option to purchase 800,000 common shares at $.04 per share with an estimated fair value of $14,720 using the Black-Scholes option-pricing model. The option value will be amortized to interest expense over the extension period. On March 14, 2016, the Company entered into an unsecured financing agreement with a third-party lender (“2016 Note Payable”). In consideration for providing the financing, the Company paid the lender a fee consisting of 2,500,000 shares of its common stock valued at $37,500 on the date of the agreement based upon the closing bid quotation of its common stock on the OTC Bulletin Board on that date. The above deferred financing costs are recorded as a reduction of the principal owed and are amortized over the life of the debt. At December 31, 2016, the Company has deferred financing costs of $105,620 less accumulated amortization expenses of $40,806 with a net carrying value of $64,814 ($34,638 - 2015). See Note 9 for the loan fees amortization schedule.

NOTES PAYABLE - CURRENT

NOTES PAYABLE - CURRENT	12 Months Ended
	Dec. 31, 2016
Debt Disclosure [Abstract]
NOTES PAYABLE - CURRENT	Notes payable consist of: December 31, 2016 2015 Note payable, 10%, unsecured $ 30,000 $ 30,000 Note payable, 10%, secured by Software (A) 12,500 42,000 Convertible demand note payable to former employee, 11% (B) 5,779 0 Demand note payable to former director, 10%, unsecured 30,000 0 Convertible demand note payable to former director, 12%, unsecured (C) 40,000 0 Convertible notes payable, 6% (D) 150,000 0 Convertible term note payable, 7%, secured (E) 100,000 0 $ 368,279 $ 72,000 Notes payable - related parties consist of: December 31, 2016 2015 Convertible demand note payable to employee, 11% (B) $ 0 $ 49,776 Demand note payable to director, 10%, unsecured 0 30,000 Convertible demand note payable to director, 12%, unsecured (C) 0 40,000 $ 0 $ 119,776 (A) Note payable, 10%, secured by Software (B) Convertible demand note payable to former employee, 11% - (C) Convertible demand note payable to former director, 12%, - (D) Convertible notes payable, 6% - (E) Convertible term note payable, 7%, secured -

LONG-TERM OBLIGATIONS

LONG-TERM OBLIGATIONS	12 Months Ended
	Dec. 31, 2016
Debt Disclosure [Abstract]
LONG-TERM OBLIGATIONS	Notes Payable - Other - December 31 2016 2015 Note payable, 10%, secured, due January 1, 2018 $ 265,000 $ 265,000 Convertible term note payable,12%, secured, due August 31, 2018 175,000 175,000 Term note payable - PBGC, 6%, secured 246,000 249,000 Obligation to PBGC based on free cash flow 569,999 569,999 2016 note payable, 6%, unsecured, due December 31, 2021 500,000 0 Convertible note payable, 6%, due January 1, 2020 264,000 0 Convertible notes payable, 6%, due December 31, 2016 0 150,000 Convertible term note payable, 7%, secured, due October 3, 2016 0 100,000 2,019,999 1,508,999 Less deferred financing costs 32,775 0 1,987,224 1,508,999 Less current maturities 836,999 262,000 $ 1,150,225 $ 1,246,999 Note payable, 10%, secured, due January 1, 2018 - Convertible term note payable, 12%, secured, due August 31, 2018 - Term note payable - PBGC, 6%, secured - Obligation to PBGC based on free cash flow - 2016 note payable, 6%, unsecured, due December 31, 2021 - Convertible note payable, 6%, due January 1, 2020 - Convertible notes payable, 6%, due December 31, 2016 - Convertible term note payable, 7%, secured, due October 3, 2016 - Notes Payable - Related Parties Notes payable - related parties consist of: December 31, 2016 2015 Convertible notes payable, 6% $ 155,300 $ 419,300 Note payable, line of credit, 6.6%, unsecured 386,065 394,028 Convertible note payable, 7%, due March 31, 2018 25,000 25,000 566,365 838,328 Less deferred financing costs 32,039 34,638 534,326 803,690 Less current maturities 0 16,979 $ 534,326 $ 786,711 Convertible notes payable, 6% - The Company executed collateral security agreements with the note holders providing for a subordinate security interest in all of the Company’s assets. Generally, upon notice, prior to the note maturity date, the Company can prepay all or a portion of the outstanding notes. The Notes are convertible into shares of common stock subject to the following limitations. The Notes are not convertible to the extent that shares of common stock issuable upon the proposed conversion would result in a change in control of the Company which would limit the use of its net operating loss carryforwards; provided, however, if the Company closes a transaction with another third party or parties that results in a change of control which will limit the use of its net operating loss carryforwards, then the foregoing limitation shall lapse. Prior to any conversion by a requesting note holder, each note holder holding a note which is then convertible into 5% or more of the Company’s common stock shall be entitled to participate on a pari passu basis with the requesting note holder and upon any such participation the requesting note holder shall proportionately adjust his conversion request such that, in the aggregate, a change of control, which will limit the use of the Company’s net operating loss carryforwards, does not occur. Note payable, line of credit, 6.6%, unsecured - Convertible note payable, 6%, due March 31, 2018 - Long-Term Obligations As of December 31, 2016, minimum future contractual annual payments of long-term obligations and amortization of deferred financing costs are as follows: Annual Annual Payments Amortization Net 2017 $ 598,999 $ 8,000 $ 590,999 2018 698,000 8,000 690,000 2019 8,000 8,000 0 2020 772,365 8,039 764,326 2021 509,000 32,775 476,225 Total long-term obligations $ 2,586,364 $ 64,814 $ 2,521,550

STOCKHOLDERS' DEFICIENCY

STOCKHOLDERS' DEFICIENCY	12 Months Ended
	Dec. 31, 2016
Stockholders' Equity Note [Abstract]
STOCKHOLDERS' DEFICIENCY	Preferred Stock - Common Stock -

STOCK OPTION PLANS AND AGREEMEN

STOCK OPTION PLANS AND AGREEMENTS	12 Months Ended
	Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCK OPTION PLANS AND AGREEMENTS	The Company’s Board and stockholders have approved stock option plans adopted in 1996, 1997, 1998, 1999, and 2005, which have authority to grant options to purchase up to an aggregate of 1,283,000 common shares at December 31, 2016 (2,424,000 – 2015). No further grants may be made from these plans. The Company grants stock options to its key employees and independent service providers as it deems appropriate. Options expire from five to ten years after the grant date. 2009 Plan - Option Agreements - Loan Fees - The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model based on the following assumptions. Volatility is based on the Company’s historical volatility. The expected life of the options was assumed to be 2.50 to 5.75 years using the simplified method for plain vanilla options as stated in FASB ASC 718 to improve the accuracy of this assumption while simplifying record keeping requirements until more detailed information about the Company’s exercise behavior is available. The risk-free rate for the life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. The following assumptions were used for the years ended December 31, 2016 and 2015. 2016 2015 Risk -free interest rate .71% to 1.50% 1.49% to 1.78% Expected dividend yield 0 % 0 % Expected stock price volatility 100 % 100 % Expected life of options 2.50 to 5.75 years 5.75 years The following is a summary of stock option activity, including qualified and non-qualified options for the years ended December 31, 2016 and 2015: Number of Options Outstanding Weighted Average Exercise Price Remaining Contractual Term Aggregate Intrinsic Value Outstanding at December 31, 2014 10,899,500 $ .18 Granted 150,000 $ .09 Expired (1,954,333 ) $ .15 Forfeited (651,667 ) $ .13 Outstanding at December 31, 2015 8,443,500 $ .16 Granted 3,353,000 $ .09 Expired (2,856,833 ) $ .17 Forfeited (356,667 ) $ .05 Outstanding at December 31, 2016 8,583,000 $ .12 4.3 years $ 21,900 Vested or expected to vest at December 31, 2016 6,195,000 $ .09 5.4 years $ 20,400 Exercisable at December 31, 2016 5,982,500 $ .09 5.3 years $ 19,800 At December 31, 2016, there was approximately $18,000 of total unrecognized compensation cost related to outstanding non-vested options, which excludes non-vested options which are performance based for which the option expense cannot be presently quantified. This cost is expected to be recognized over a weighted average period of approximately one year. The total fair value of shares vested during the year ended December 31, 2016 was approximately $78,000. The weighted average fair value of options granted was $.02 and $.03 per share for the years ended December 31, 2016 and 2015, respectively. The exercise price for all options granted equaled or exceeded the market value of the Company’s common stock on the date of grant.

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2016
Income Tax Disclosure [Abstract]
INCOME TAXES	The components of income tax expense (benefit) consists of the following: December 31, 2016 2015 Deferred: Federal $ (44,000 ) $ (255,000 ) State (9,000 ) (31,000 ) (53,000 ) (286,000 ) Change in valuation allowance 53,000 286,000 $ 0 $ 0 At December 31, 2016, the Company had federal net operating loss carryforwards of approximately $7,500,000 ($7,300,000 - 2015) and various state net operating loss carryforwards of approximately $2,800,000 ($2,500,000 - 2015) which expire from 2018 through 2036. These carryforwards exclude federal net operating loss carryforwards from inactive subsidiaries and net operating loss carryforwards from states that the Company does not presently operate in. Utilization of the net operating loss carryforwards may be subject to a substantial annual limitation due to the ownership change limitations provided by the Internal Revenues Code and similar state provisions. The annual limitation may result in the expiration of the net operating loss carryforwards before utilization. At December 31, 2016, a net deferred tax asset, representing the future benefit attributed primarily to the available net operating loss carryforwards and defined benefit pension plan expenses, in the amount of approximately $3,484,000 ($3,431,000 - 2015), had been fully offset by a valuation allowance because management believes that the statutory limitations on utilization of the operating losses and concerns over achieving profitable operations diminish the Company’s ability to demonstrate that it is more likely than not that these future benefits will be realized before they expire. The following is a summary of the Company's temporary differences and carryforwards which give rise to deferred tax assets and liabilities. December 31, 2016 2015 Deferred tax assets: Net operating loss carryforwards $ 2,735,000 $ 2,614,000 Defined benefit pension liability 324,000 325,000 Reserves and accrued expenses payable 425,000 492,000 Gross deferred tax asset 3,484,000 3,431,000 Deferred tax asset valuation allowance (3,484,000 ) (3,431,000 ) Net deferred tax asset $ 0 $ 0 The differences between the U.S. statutory federal income tax rate and the effective income tax rate in the accompanying statements of operations are as follows: December 31, 2016 2015 Statutory U.S. federal tax rate 34.0 % 34.0 % State income taxes 0.0 3.8 Change in valuation allowance (16.2 ) (35.3 ) Stock-based compensation expense (.4 ) (1.7 ) Expired stock-based compensation (15.3 ) (.4 ) Other permanent non-deductible items (2.1 ) (.4 ) Effective income tax rate 0.0 % 0.0 %

EMPLOYEE RETIREMENT PLANS

EMPLOYEE RETIREMENT PLANS	12 Months Ended
	Dec. 31, 2016
Compensation and Retirement Disclosure [Abstract]
EMPLOYEE RETIREMENT PLANS	Simple IRA Plan 401(k) Plan -

COMMITMENTS

COMMITMENTS	12 Months Ended
	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS	Lease Commitments -

RELATED PARTY ACCOUNTS RECEIVAB

RELATED PARTY ACCOUNTS RECEIVABLE AND ACCRUED INTEREST PAYABLE	12 Months Ended
	Dec. 31, 2016
Related Party Transactions [Abstract]
RELATED PARTY ACCOUNTS RECEIVABLE AND ACCRUED INTEREST PAYABLE	Accrued Interest Payable -

SUPPLEMENTAL CASH FLOW INFORMAT

SUPPLEMENTAL CASH FLOW INFORMATION	12 Months Ended
	Dec. 31, 2016
Supplemental Cash Flow Elements [Abstract]
SUPPLEMENTAL CASH FLOW INFORMATION	On April 13, 2016, as payment of a fee under the 2016 Note Payable, the Company issued 2,500,000 shares of its common stock valued on the date of execution of this agreement at $.015 per share for $37,500 (See Note 10). On February 6, 2015, the Company originated a secured promissory note in the principal amount of $80,000 in connection with the acquisition of the UberScan software (See Note 5). The Company made principal payments of $29,500 in 2016 and $38,000 in 2015. During 2015, the accounts receivable balance of $110,000 due from goSudo was converted to a demand note with interest at 10% and was fully reserved upon conversion. The note is on non-accrual status and the net carrying value is $0 at December 31, 2016 and 2015.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	12 Months Ended
	Dec. 31, 2016
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	Subsequent to December 31, 2016 and through March 31, 2017, the Company issued options to an employee for 150,000 common shares at an exercise price of $.035.

SUMMARY OF SIGNIFICANT ACCOUN24

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Accounts Receivable	Credit is granted to substantially all customers throughout the United States. The Company carries its accounts receivable at invoice amount, less an allowance for doubtful accounts. On a periodic basis, the Company evaluates its accounts receivable and establishes an allowance for doubtful accounts, based on a history of past write-offs and collections and current credit conditions. The Company’s policy is to not accrue interest on past due receivables. Management determined that an allowance of $70,000 for doubtful accounts was reasonably stated at December 31, 2016 and 2015.
Concentration of Credit Risk
Loan Origination Fees
Sale of Certain Accounts Receivable	These transactions qualify for a sale of assets since (1) the Company has transferred all of its right, title and interest in the selected accounts receivable invoices to the financial institution, (2) the Purchaser may pledge, sell or transfer the selected accounts receivable invoices, and (3) the Company has no effective control over the selected accounts receivable invoices since it is not entitled to or obligated to repurchase or redeem the invoices before their maturity and it does not have the ability to unilaterally cause the Purchaser to return the invoices. Under FASB ASC 860, after a transfer of financial assets, an entity recognizes the financial and servicing assets it controls and the liabilities it has incurred, derecognizes financial assets when control has been surrendered, and derecognizes liabilities when extinguished. Pursuant to the provisions of FASB ASC 860, the Company reflects the transactions as a sale of assets and establishes an accounts receivable from the Purchaser for the retained amount less the costs of the transaction and less any anticipated future loss in the value of the retained asset. During 2015 and through August 28, 2016, the retained amount was equal to 15% of the total accounts receivable invoice sold to the Purchaser. The fee was charged at prime plus 4% against the average daily outstanding balance of funds advanced. On August 29, 2016, the Company completed a revised financing agreement with the Purchaser. The retained amount was revised to 10% of the total accounts receivable invoice sold to the Purchaser. The fee is charged at prime plus 3.6% (effective rate of 7.35% at December 31, 2016) against the average daily outstanding balance of funds advanced. The estimated future loss reserve for each receivable included in the estimated value of the retained asset is based on the payment history of the accounts receivable customer and is included in the allowance for doubtful accounts, if any. As collateral, the Company granted the Purchaser a first priority interest in accounts receivable and a blanket lien, which may be junior to other creditors, on all other assets. The financing line provides the Company the ability to finance up to $2,000,000 of selected accounts receivable invoices, which includes a sublimit for one of the Company’s customers of $1,500,000. During the year ended December 31, 2016, the Company sold approximately $5,924,000 ($7,065,000 - 2015) of its accounts receivable to the Purchaser. As of December 31, 2016, $328,390 ($566,561 - 2015) of these receivables remained outstanding. Additionally, as of December 31, 2016, the Company had approximately $143,000 available under the financing line with the financial institution ($20,000 - 2015). After deducting estimated fees and advances from the Purchaser, the net receivable from the Purchaser amounted to $31,462 at December 31, 2016 ($82,341 - 2015), and is included in accounts receivable in the accompanying balance sheets as of that date. There were no gains or losses on the sale of the accounts receivable because all were collected. The cost associated with the financing line totaled approximately $67,000 for the year ended December 31, 2016 ($79,000 - 2015). These financing line fees are classified on the statements of operations as interest expense.
Property and Equipment
Accounting for the Impairment or Disposal of Long-Lived Assets	The Company follows provisions of FASB ASC 360 “Property, Plant and Equipment” in accounting for the impairment or disposal of long-lived assets. This standard specifies, among other things, that long-lived assets are to be reviewed for potential impairment whenever events or circumstances indicate that the carrying amounts may not be recoverable. The Company determined that there was no impairment of long-lived assets during 2016 and 2015.
Revenue Recognition	During 2016, sales to one client, including sales under subcontracts for services to several entities, accounted for 60.5% of total sales (60.1% - 2015) and 34.0% of accounts receivable at December 31, 2016 (29.1% - 2015). Sales to another client, which consisted of sales under subcontracts, accounted for 22.4% of sales in 2016 (25.7% - 2015) and 28.5% of accounts receivable at December 31, 2016 (36.2% - 2015).
Equity Instruments	-
Stock Options
Income Taxes	The Company periodically reviews tax positions taken to determine if it is more likely than not that the position would be sustained upon examination. The Company did not have any material unrecognized tax benefit at December 31, 2016 or 2015. The Company recognizes accrued interest and penalties related to unrecognized tax benefits in tax expense. During the years ended December 31, 2016 and 2015, the Company recognized no interest and penalties. The Company files U.S. federal tax returns and tax returns in various states. The tax years 2013 through 2016 remain open to examination by the taxing jurisdictions to which the Company is subject.
Fair Value of Financial Instruments	Level 1 uses observable inputs such as quoted prices in active markets; Level 2 uses inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3 is defined as unobservable inputs in which little or no market data exist and requires the Company to develop its own assumptions. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The carrying amounts of cash, accounts receivable and accounts payable and accrued expenses are reasonable estimates of their fair value due to their short maturity. Based on the borrowing rates currently available to the Company for loans similar to its term debt and notes payable, the fair value approximates the carrying amounts.
Earnings Per Share	The following table sets forth the computation of basic and diluted loss per share as of December 31, 2016 and 2015: Years ended December 31, 2016 2015 Numerator for basic and diluted net loss per share: Net loss $ (325,000 ) $ (811,082 ) Denominator for basic and diluted net loss per share: Weighted average common shares outstanding 28,358,331 26,561,883 Basic and diluted net loss per share $ (.01 ) $ (.03 ) Anti-dilutive shares excluded from net loss per share 28,645,507 28,286,546 Certain common shares issuable under stock options and convertible notes payable have been omitted from the diluted net loss per share calculation because their inclusion is considered anti-dilutive because the exercise prices were greater than the average market price of the common shares or their inclusion would have been anti-dilutive.
Equity Investments
Reclassifications
Use of Estimates
Recently Adopted Accounting Pronouncements
Recent Accounting Pronouncements Not Yet Adopted	● ASU No. 2016-12 “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients” was issued in May 2016. ASU No. 2016-12 amends the new revenue recognition standard to clarify the guidance on assessing collectability, presenting sales taxes, measuring noncash consideration, and certain transition matters. ● ASU No. 2016-10 “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing” was issued in April 2016. ASU No. 2016-10 addresses implementation issues identified by the FASB-International Accounting Standards Board Joint Transition Resource Group for Revenue Recognition. ● ASU No. 2016-08 “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net)” was issued in March 2016. ASU No. 2016-08 requires an entity to determine whether the nature of its promise to provide goods or services to a customer is performed in a principal or agent capacity and to recognize revenue in a gross or net manner based on its principal/agent designation. The Company is currently evaluating the effect the updated standard will have on its financial statements and related disclosures but does not expect the adoption to have a significant impact. In November 2015, the FASB issued new accounting guidance on the classification of deferred taxes. The new guidance requires that all deferred tax asset and liabilities be classified as noncurrent in a classified statement of financial position. This guidance is effective for financial statements issued for fiscal years beginning after December 15, 2016 and interim periods within those fiscal years. Early application is permitted. When the guidance is effective all deferred tax assets and liabilities will be presented as noncurrent. The Company does not believe this guidance will have a material effect on the Company’s financial statements when adopted. In February 2016, the FASB issued amended guidance for lease arrangements to increase transparency and comparability by providing additional information to users of financial statements regarding an entity's leasing activities. The revised guidance seeks to achieve this objective by requiring reporting entities to recognize lease assets and lease liabilities on the balance sheet for substantially all lease arrangements. The guidance, which is required to be adopted in the first quarter of 2019, will be applied on a modified retrospective basis beginning with the earliest period presented. Early adoption is permitted. The Company will evaluate the effect that this standard will have on its financial statements and related disclosures.

SUMMARY OF SIGNIFICANT ACCOUN25

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	Years ended December 31, 2016 2015 Numerator for basic and diluted net loss per share: Net loss $ (325,000 ) $ (811,082 ) Denominator for basic and diluted net loss per share: Weighted average common shares outstanding 28,358,331 26,561,883 Basic and diluted net loss per share $ (.01 ) $ (.03 ) Anti-dilutive shares excluded from net loss per share 28,645,507 28,286,546

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment	December 31, Depreciable Lives 2016 2015 Software 3 years $ 34,934 $ 29,004 Equipment 3 to 10 years 123,621 158,851 Furniture and fixtures 5 to 7 years 17,735 17,735 Leasehold improvements 3 years 0 5,874 176,290 211,464 Accumulated depreciation (150,211 ) (172,191 ) $ 26,079 $ 39,273

NOTES PAYABLE - CURRENT (Tables

NOTES PAYABLE - CURRENT (Tables)	12 Months Ended
	Dec. 31, 2016
Debt Disclosure [Abstract]
Schedule of Related Party Transactions	Notes payable consist of: December 31, 2016 2015 Note payable, 10%, unsecured $ 30,000 $ 30,000 Note payable, 10%, secured by Software (A) 12,500 42,000 Convertible demand note payable to former employee, 11% (B) 5,779 0 Demand note payable to former director, 10%, unsecured 30,000 0 Convertible demand note payable to former director, 12%, unsecured (C) 40,000 0 Convertible notes payable, 6% (D) 150,000 0 Convertible term note payable, 7%, secured (E) 100,000 0 $ 368,279 $ 72,000 Notes payable - related parties consist of: December 31, 2016 2015 Convertible demand note payable to employee, 11% (B) $ 0 $ 49,776 Demand note payable to director, 10%, unsecured 0 30,000 Convertible demand note payable to director, 12%, unsecured (C) 0 40,000 $ 0 $ 119,776

LONG-TERM OBLIGATIONS (Tables)

LONG-TERM OBLIGATIONS (Tables)	12 Months Ended
	Dec. 31, 2016
Debt Disclosure [Abstract]
Schedule of Notes Payable Related Parties	December 31 2016 2015 Note payable, 10%, secured, due January 1, 2018 $ 265,000 $ 265,000 Convertible term note payable,12%, secured, due August 31, 2018 175,000 175,000 Term note payable - PBGC, 6%, secured 246,000 249,000 Obligation to PBGC based on free cash flow 569,999 569,999 2016 note payable, 6%, unsecured, due December 31, 2021 500,000 0 Convertible note payable, 6%, due January 1, 2020 264,000 0 Convertible notes payable, 6%, due December 31, 2016 0 150,000 Convertible term note payable, 7%, secured, due October 3, 2016 0 100,000 2,019,999 1,508,999 Less deferred financing costs 32,775 0 1,987,224 1,508,999 Less current maturities 836,999 262,000 $ 1,150,225 $ 1,246,999
Contractual Obligation, Fiscal Year Maturity Schedule	Annual Annual Payments Amortization Net 2017 $ 598,999 $ 8,000 $ 590,999 2018 698,000 8,000 690,000 2019 8,000 8,000 0 2020 772,365 8,039 764,326 2021 509,000 32,775 476,225 Total long-term obligations $ 2,586,364 $ 64,814 $ 2,521,550

STOCK OPTION PLANS AND AGREEM29

STOCK OPTION PLANS AND AGREEMENTS (Tables)	12 Months Ended
	Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions	2016 2015 Risk -free interest rate .71% to 1.50% 1.49% to 1.78% Expected dividend yield 0 % 0 % Expected stock price volatility 100 % 100 % Expected life of options 2.50 to 5.75 years 5.75 years
Schedule of Share-based Compensation, Stock Options, Activity	Number of Options Outstanding Weighted Average Exercise Price Remaining Contractual Term Aggregate Intrinsic Value Outstanding at December 31, 2014 10,899,500 $ .18 Granted 150,000 $ .09 Expired (1,954,333 ) $ .15 Forfeited (651,667 ) $ .13 Outstanding at December 31, 2015 8,443,500 $ .16 Granted 3,353,000 $ .09 Expired (2,856,833 ) $ .17 Forfeited (356,667 ) $ .05 Outstanding at December 31, 2016 8,583,000 $ .12 4.3 years $ 21,900 Vested or expected to vest at December 31, 2016 6,195,000 $ .09 5.4 years $ 20,400 Exercisable at December 31, 2016 5,982,500 $ .09 5.3 years $ 19,800

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Schedule of Components of Income Tax Expense (Benefit)	December 31, 2016 2015 Deferred: Federal $ (44,000 ) $ (255,000 ) State (9,000 ) (31,000 ) (53,000 ) (286,000 ) Change in valuation allowance 53,000 286,000 $ 0 $ 0
Schedule of Deferred Tax Assets and Liabilities	December 31, 2016 2015 Deferred tax assets: Net operating loss carryforwards $ 2,735,000 $ 2,614,000 Defined benefit pension liability 324,000 325,000 Reserves and accrued expenses payable 425,000 492,000 Gross deferred tax asset 3,484,000 3,431,000 Deferred tax asset valuation allowance (3,484,000 ) (3,431,000 ) Net deferred tax asset $ 0 $ 0
Schedule of Effective Income Tax Rate Reconciliation	December 31, 2016 2015 Statutory U.S. federal tax rate 34.0 % 34.0 % State income taxes 0.0 3.8 Change in valuation allowance (16.2 ) (35.3 ) Stock-based compensation expense (.4 ) (1.7 ) Expired stock-based compensation (15.3 ) (.4 ) Other permanent non-deductible items (2.1 ) (.4 ) Effective income tax rate 0.0 % 0.0 %

MANAGEMENT PLANS (Details Narra

MANAGEMENT PLANS (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Net (loss) income	$ (325,000)	$ (811,082)

SUMMARY OF SIGNIFICANT ACCOUN32

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Numerator for basic and diluted net loss per share:
Net (loss) income	$ (325,000)	$ (811,082)
Denominator for basic net (loss) income per share:
Weighted average common shares outstanding	28,358,331	26,561,883
Basic net (loss) income per share	$ (.01)	$ (0.03)
Anti-dilutive shares excluded from net loss per share	28,645,507	28,286,546

SUMMARY OF SIGNIFICANT ACCOUN33

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Accounting policies [Line Items]
Allowance for Doubtful Accounts Receivable, Current	$ 70,000	$ 70,000
Accounts Receivable, Factoring Retained Amount, Percentage	10.00%	15.00%
Accounts Receivable, effective rate	7.35%
Accounts Receivable, Factoring Additional Fee on Average Daily Balance of Net Outstanding Funds Prime Rate, Percentage	3.60%
Accounts Receivable, Factoring Agreement, Non Recourse Receivables	$ 2,000,000
Accounts Receivable, Factoring Agreement, Non Recourse Receivables Sublimit for Single Customer Receivable	1,500,000
Proceeds from Sale of Finance Receivables	5,924,000	$ 7,065,000
Trade Receivables Held-for-sale, Amount	328,390	566,561
Receivable from Purchaser, Net of Fees and Advances	31,462	82,341
Availability to borrow more funds under line of credit	$ 143,000	$ 20,000
Customer A [Member]
Accounting policies [Line Items]
Sales Revenue Net, Percentage	60.50%	60.10%
Accounts Receivable, Percentage	34.00%	29.10%
Customer B [Member]
Accounting policies [Line Items]
Sales Revenue Net, Percentage	22.40%	25.70%
Accounts Receivable, Percentage	28.50%	36.20%

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 176,290	$ 211,464
Accumulated depreciation	(150,211)	(172,191)
Property and equipment, net	26,079	39,273
Software [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 34,934	29,004
Depreciable Lives (in years)	3 years
Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 123,621	158,851
Equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Depreciable Lives (in years)	3 years
Equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Depreciable Lives (in years)	10 years
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 17,735	17,735
Furniture and Fixtures [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Depreciable Lives (in years)	5 years
Furniture and Fixtures [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Depreciable Lives (in years)	7 years
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 0	$ 5,874
Depreciable Lives (in years)	3 years

PROPERTY AND EQUIPMENT (Detai35

PROPERTY AND EQUIPMENT (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Property, Plant and Equipment [Abstract]
Depreciation	$ 21,044	$ 24,578

INVESTMENT (Details Narrative)

INVESTMENT (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Investments, Debt And Equity Securities [Line Items]
Preferred Stock, Par or Stated Value Per Share	$ 0.01
Assets	$ 442,053	$ 342,740
Liabilities	4,434,895	4,099,605
Net (loss) income	$ (325,000)	(811,082)
Sudo Me Corporation [Member]
Investments, Debt And Equity Securities [Line Items]
Percentage of Outstanding Shares Owned	9.40%
Investment Write Down		$ 109,000
Series A Preferred Stock [Member] | Sudo Me Corporation [Member]
Investments, Debt And Equity Securities [Line Items]
Purchase of Series A Convertible Preferred Stock (in shares)	300,000
Preferred Stock, Par or Stated Value Per Share	$ 0.001
Aggregate Purchase Price of Series A Convertible Preferred Stock	$ 300,000

LOAN FEES (Details Narrative)

LOAN FEES (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Loan Fees Details Narrative
Deferred origination fees, gross	$ 105,620
Accumulated amortization expenses	40,806
Deferred origination fees, net carrying value	$ 64,814	$ 34,638

NOTES PAYABLE - CURRENT (Detail

NOTES PAYABLE - CURRENT (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Short-term Debt [Line Items]
Notes Payable, Related Parties, Current	$ 0	$ 119,776
Convertible Demand Note Payable To Employee Eleven Percentage [Member]
Short-term Debt [Line Items]
Notes Payable, Related Parties, Current	0	49,776
Demand Note Payable To Director Ten Percentage Unsecured [Member]
Short-term Debt [Line Items]
Notes Payable, Related Parties, Current	0	30,000
Convertible Demand Note Payable To Director Twelve Percentage Unsecured [Member]
Short-term Debt [Line Items]
Notes Payable, Related Parties, Current	$ 0	$ 40,000

NOTES PAYABLE - CURRENT (Deta39

NOTES PAYABLE - CURRENT (Details Narrative)	Dec. 31, 2016USD ($)shares
Eleven Percentage Interest On Convertible Notes Payable [Member]
Short-term Debt [Line Items]
Convertible Notes Payable | $	$ 5,779
Debt Instrument, Interest Rate, Effective Percentage	11.00%
Convertible Common Stock Price | shares	0.16
Twelve Percentage Interest On Convertible Notes Payable [Member]
Short-term Debt [Line Items]
Convertible Notes Payable | $	$ 40,000
Debt Instrument, Interest Rate, Effective Percentage	12.00%
Convertible Common Stock Price | shares	0.11

LONG-TERM OBLIGATIONS (Details)

LONG-TERM OBLIGATIONS (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Long-term Debt	$ 2,019,999	$ 1,508,999
Less deferred financing costs	32,775
Less current maturities	836,999	262,000
Long-term Debt, Excluding Current Maturities	1,150,225	1,246,999
Note Payable Secured Due January 1, 2018 [Member]
Debt Instrument [Line Items]
Long-term Debt	265,000	265,000
Convertible Term Note Payable Secured Due August 31, 2018 [Member]
Debt Instrument [Line Items]
Long-term Debt	175,000	175,000
Term Note Payable PBGC Secured [Member]
Debt Instrument [Line Items]
Long-term Debt	246,000	249,000
Obligation to PBGC Based on Free Cash Flow [Member]
Debt Instrument [Line Items]
Long-term Debt	569,999	569,999
2016 note payable, 6%, unsecured, due December 31, 2021 [Member]
Debt Instrument [Line Items]
Long-term Debt	500,000
Convertible note payable due January 1, 2020 [Member]
Debt Instrument [Line Items]
Long-term Debt	264,000
Convertible Notes Payable Due December 31, 2016 [Member]
Debt Instrument [Line Items]
Long-term Debt	0	150,000
Convertible Term Note Payable Secured Due October 3, 2016 [Member]
Debt Instrument [Line Items]
Long-term Debt	$ 0	$ 100,000

LONG-TERM OBLIGATIONS (Details

LONG-TERM OBLIGATIONS (Details 1) (USD $) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Notes Payable - Related Parties	$ 566,365	$ 838,328
Less deferred financing costs	32,039	34,638
Less current maturities	0	16,979
Notes Payable - Related Parties, Excluding Current Maturities	534,326	786,711
Convertible Notes Payable Due December 31, 2016 [Member]
Notes Payable - Related Parties	155,300	419,300
Note payable, line of credit [Member]
Notes Payable - Related Parties	386,065	394,028
Convertible Notes Payable Due March 31, 2018 [Member]
Notes Payable - Related Parties	$ 25,000	$ 25,000

LONG-TERM OBLIGATIONS (Detail42

LONG-TERM OBLIGATIONS (Details 2)	Dec. 31, 2016USD ($)
Debt Instrument [Line Items]
2,017	$ 590,999
2,018	690,000
2,019	0
2,020	764,326
2,021	476,225
Total long-term obligations	2,521,550
Annual Payments
Debt Instrument [Line Items]
2,017	598,999
2,018	698,000
2,019	8,000
2,020	772,365
2,021	509,000
Total long-term obligations	2,586,364
Annual Amortization
Debt Instrument [Line Items]
2,017	8,000
2,018	8,000
2,019	8,000
2,020	8,039
2,021	32,775
Total long-term obligations	$ 64,814

STOCKHOLDERS' DEFICIENCY (Detai

STOCKHOLDERS' DEFICIENCY (Details Narrative)	Dec. 31, 2016$ / sharesshares
Stockholders' Equity Note [Abstract]
Preferred Stock, Shares Authorized | shares	1,000,000
Preferred Stock, Par or Stated Value Per Share | $ / shares	$ 0.01

STOCK OPTION PLANS AND AGREEM44

STOCK OPTION PLANS AND AGREEMENTS (Details)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate, Minimum	0.71%	1.49%
Risk-free interest rate, Maximum	1.50%	1.78%
Expected dividend yield	0.00%	0.00%
Expected stock price volatility	100.00%	100.00%
Expected life of options		5 years 9 months
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected life of options	2 years 6 months
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected life of options	5 years 9 months

STOCK OPTION PLANS AND AGREEM45

STOCK OPTION PLANS AND AGREEMENTS (Details 1) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Number of Option Outstanding, Beginning Balance	8,443,500	10,899,500
Number of Options, Options Granted (in shares)	3,353,000	150,000
Number of Options, Options Expired (in shares)	(2,856,833)	(1,954,333)
Number of Options, Options Forfeited (in shares)	(356,667)	(651,667)
Number of option Outstanding, Ending Balance	8,583,000	8,443,500
Number of option, Vested or expected to vest at December 31, 2016	6,195,000	6,693,500
Number of Option Outstanding, Excercisable at December 31, 2016	5,982,500	6,073,500
Weighted Average Exercise Price, Outstanding, Beginning Balance	$ 0.16	$ 0.16
Weighted Average Exercise Price, Options Granted (in dollars per share)	0.09	0.05
Weighted Average Exercise Price, Options Expired (in dollars per share)	0.17	0.13
Weighted Average Exercise Price, Options Forfeited (in dollars per share)	0.05	0.13
Weighted Average Exercise Price, Outstanding, Ending Balance	0.12	0.16
Weighted Average Exercise Price, Vested or expected to vest at December 31, 2016	0.09	0.17
Weighted Average Exercise Price, Excercisable at December 31, 2016	$ 0.09	$ 0.17
Weighted-Average Remaining Contractual Term, Outstanding at December 31, 2016	4 years 3 months 18 days
Weighted-Average Remaining Contractual Term, Vested or expected to vest at December 31, 2016	5 years 4 months 24 days
Weighted-Average Remaining Contractual Term, Exercisable at December 31, 2016	5 years 3 months 18 days
Aggregate Intrinsic Value, Outstanding (in dollars) at December 31, 2016	$ 21,900	$ 0
Aggregate Intrinsic Value, Vested or expected to vest at December 31, 2016	20,400	0
Aggregate Intrinsic Value, Exercisable (in dollars) at December 31, 2016	$ 19,800	$ 0

Disclosure - STOCK OPTION PLANS

Disclosure - STOCK OPTION PLANS AND AGREEMENTS (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	1,283,000	2,424,000
Total unrecognized compensation cost	$ 18,000
Period for recognition of compensation cost not yet recognized	1 year
Fair value of shares vested during year	$ 78,000

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Deferred:
Federal	$ (44,000)	$ (255,000)
State	(9,000)	(31,000)
Deferred Income Tax Expense (Benefit)	(53,000)	(286,000)
Change in valuation allowance	53,000	286,000
Income Tax Expense (Benefit)	$ 0	$ 0

INCOME TAXES (Details 1)

INCOME TAXES (Details 1) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Deferred tax assets:
Net operating loss carryforwards	$ 2,735,000	$ 2,614,000
Defined benefit pension liability	324,000	325,000
Reserves and accrued expenses payable	425,000	492,000
Gross deferred tax asset	3,484,000	3,431,000
Deferred tax asset valuation allowance	(3,484,000)	(3,431,000)
Net deferred tax asset	$ 0	$ 0

INCOME TAXES (Details 2)

INCOME TAXES (Details 2)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Income Taxes Details 2
Statutory U.S. federal tax rate	34.00%	34.00%
State income taxes	0.00%	3.80%
Change in valuation allowance	(16.20%)	(35.30%)
Stock-based compensation expense	(0.40%)	(1.70%)
Expired stock-based compensation	(15.30%)	(0.40%)
Other permanent non-deductible items	(2.10%)	(0.40%)
Effective income tax rate	0.00%	0.00%

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Operating Loss Carryforwards [Line Items]
Operating Loss Carryforwards	$ 7,500,000	$ 7,300,000
Deferred Tax Assets, Valuation Allowance	3,484,000	3,431,000
State and Local Jurisdiction [Member]
Operating Loss Carryforwards [Line Items]
Operating Loss Carryforwards	$ 2,800,000	$ 2,500,000

EMPLOYEE RETIREMENT PLANS (Deta

EMPLOYEE RETIREMENT PLANS (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Compensation and Retirement Disclosure [Abstract]
Defined Contribution Plan, Accrued Liability	$ 225,720	$ 216,913
Defined Contribution Plan, Employer Contribution Limit	18,000
Defined Contribution Plan, Additional Catch up Contribution Per Employee Amount	$ 6,000

COMMITMENTS (Details Narrative)

COMMITMENTS (Details Narrative)	12 Months Ended
	Dec. 31, 2016USD ($)
Commitments and Contingencies Disclosure [Abstract]
Operating Lease Carryforwards, Expiration Date	June 30, 2022
Operating Leases, Rent Expense, Net	$ 80,000

RELATED PARTY ACCOUNTS RECEIV53

RELATED PARTY ACCOUNTS RECEIVABLE AND ACCRUED INTEREST PAYABLE (Details Narrative) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Related Party Transactions [Abstract]
Accrued Interest Payable, Related Parties, Current	$ 81,347	$ 411,303