Infinite (IMCI) 10-Q 3 Jul 19 2019 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2019	Jul. 01, 2019
Document And Entity Information [Abstract]
Entity Registrant Name	INFINITE GROUP INC
Entity Central Index Key	0000884650
Document Type	10-Q
Document Period End Date	Mar. 31, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	true
Is Entity's Reporting Status Current?	No
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		29,061,883
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2019

BALANCE SHEETS (Unaudited)

BALANCE SHEETS (Unaudited) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Current Assets
Cash	$ 12,503	$ 29,716
Accounts receivable, net of allowances of $22,000	390,786	286,187
Prepaid expenses and other current assets	11,861	2,906
Total current assets	415,150	318,809
Right of Use Asset – Lease, net	248,612	0
Property and equipment, net	7,305	8,627
Deposits	6,667	6,667
Total assets	677,734	334,103
Current Liabilities
Accounts payable	286,529	367,536
Accrued payroll	275,278	218,328
Accrued interest payable	865,222	839,189
Accrued retirement	246,867	244,423
Accrued expenses - other	140,903	87,581
Operating Lease liability - Short-term	70,196	0
Current maturities of long-term obligations	950,000	686,000
Current maturities of long-term obligations - related parties	543,135	34,350
Notes payable	332,500	332,500
Notes payable - related parties	102,000	102,000
Total current liabilities	3,812,630	2,911,907
Long-term obligations:
Notes payable - other	481,974	744,335
Notes payable - related parties	169,000	677,955
Operating Lease liability - Long-term	178,928	0
Total liabilities	4,642,532	4,334,197
Commitments
Stockholders' deficiency:
Common stock, $.001 par value, 60,000,000 shares authorized; 29,061,883 shares issued and outstanding	29,061	29,061
Additional paid-in capital	30,593,626	30,593,366
Accumulated deficit	(34,587,485)	(34,622,521)
Total stockholders' deficiency	(3,964,798)	(4,000,094)
Total liabilities and stockholders' deficiency	$ 677,734	$ 334,103

BALANCE SHEETS (Parenthetical)

BALANCE SHEETS (Parenthetical) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Allowances for accounts receivable	$ 22,000	$ 22,000
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	60,000,000	60,000,000
Common stock, shares issued	29,061,883	29,061,883
Common stock, shares outstanding	29,061,883	29,061,883

STATEMENTS OF OPERATIONS (Unaud

STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Income Statement [Abstract]
Sales	$ 1,687,794	$ 1,594,518
Cost of sales	1,057,170	1,079,154
Gross profit	630,624	515,364
Costs and expenses:
General and administrative	277,605	299,486
Selling	253,306	241,198
Total costs and expenses	530,911	540,684
Operating income (loss)	99,713	(25,320)
Interest expense:
Related parties	(16,638)	(14,371)
Other	(48,039)	(47,309)
Total interest expense	(64,677)	(61,680)
Net income (loss)	$ 35,036	$ (87,000)
Net loss per share – basic and diluted	$ 0	$ 0
Weighted average shares outstanding – basic and diluted	29,061,883	29,061,883

STATEMENTS OF CHANGES IN STOCKH

STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIENCY) (Unaudited) - USD ($)	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Total
Beginning balance, shares at Dec. 31, 2017	29,061,883
Beginning balance, amount at Dec. 31, 2017	$ 29,061	$ 30,591,896	$ (34,659,521)	$ (4,038,564)
Net income (loss)			(87,000)	(87,000)
Ending balance, shares at Mar. 31, 2018	29,061,883
Ending balance, amount at Mar. 31, 2018	$ 29,061	30,591,896	(34,746,521)	(4,125,564)
Beginning balance, shares at Dec. 31, 2018	29,061,883
Beginning balance, amount at Dec. 31, 2018	$ 29,061	30,593,366	(34,622,521)	(4,000,094)
Stock based compensation		260		260
Net income (loss)			35,036	35,036
Ending balance, shares at Mar. 31, 2019	29,061,883
Ending balance, amount at Mar. 31, 2019	$ 29,061	$ 30,593,626	$ (34,587,485)	$ (3,964,798)

STATEMENTS OF CASH FLOWS (Unaud

STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Cash flows from operating activities:
Net income (loss)	$ 35,036	$ (87,000)
Adjustments to reconcile net loss to net cash used by operating activities:
Stock based compensation	260	0
Depreciation and amortization	5,313	6,488
Allowance for bad debts	0	(4,000)
(Increase) decrease in assets:
Accounts receivable	(104,599)	214,684
Prepaid expenses and other assets	(8,955)	(9,232)
Increase (decrease) in liabilities:
Accounts payable	(81,007)	(356,577)
Accrued expenses	136,305	157,239
Accrued retirement	2,444	2,349
Net cash used by operating activities	(15,203)	(76,049)
Cash flows from financing activities:
Proceeds from notes payable - related parties	0	20,000
Repayments of notes payable - related parties	(2,010)	(670)
Net cash (used) provided by financing activities	(2,010)	19,330
Net decrease in cash	(17,213)	(56,719)
Cash - beginning of period	29,716	73,734
Cash - end of period	12,503	17,015
Supplemental Disclosures of Cash Flow Information:
Cash payments for interest	$ 35,490	$ 28,214

1. Basis of Presentation

1. Basis of Presentation	3 Months Ended
	Mar. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	The accompanying unaudited financial statements of Infinite Group, Inc. (“Infinite Group, Inc.” or the “Company”) included herein have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America (U.S.) ("GAAP") for interim financial information and with instructions to Form 10-Q. Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the U.S. for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. All such adjustments are of a normal recurring nature. The December 31, 2018 balance sheet has been derived from the audited financial statements at that date but does not include all disclosures required by GAAP. The accompanying unaudited financial statements should be read in conjunction with the Company’s audited financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 filed with the U.S. Securities and Exchange Commission (SEC). Results of operations for the three months ended March 31, 2019 are not necessarily indicative of the operating results that may be expected for the year ending December 31, 2019.

2. Management Plans - Capital R

2. Management Plans - Capital Resources	3 Months Ended
	Mar. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Management Plans - Capital Resources	The Company reported net income of $35,036 and a net loss of $87,000 for the three months ended March 31, 2019 and 2018, respectively, and stockholders’ deficiencies of $3,964,798 and $4,000,094 at March 31, 2019 and December 31, 2018, respectively. Current maturities of long-term obligations were approximately $1,490,000 and $720,000 at March 31, 2019 and December 31, 2018, respectively. Accordingly, there is substantial doubt about the Company’s ability to continue as a going concern and this substantial doubt has not been alleviated. 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 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.

3. Summary of Significant Accou

3. Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2019
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	There are several accounting policies that the Company believes are significant to the presentation of its financial statements. These policies require management to make complex or subjective judgments about matters that are inherently uncertain. Note 3 to the Company’s audited financial statements for the year ended December 31, 2018 presents a summary of significant accounting policies as included in the Company's Annual Report on Form 10-K as filed with the SEC. Reclassifications Fair Value of Financial Instruments Revenue - The Company’s total revenue recognized from contracts from customers was comprised of three major services: Managed support services, Cybersecurity projects and software and Other IT consulting services. The categories depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. There were no material unsatisfied performance obligations at March 31, 2019 or 2018 for contracts with an expected original duration of more than one year. The following table summarizes the revenue recognized by the major services: Three Months Ended March 31, 2019 2018 Managed support services $ 1,228,747 $ 1,270,182 Cybersecurity projects and software 310,608 283,056 Other IT consulting services 148,439 41,280 Total sales $ 1,687,794 $ 1,594,518 Managed support services Managed support services consist of revenue primarily from our subcontracts for services to its end clients, principally a major establishment of the U.S. Government for which we manage one of the nation’s largest physical and virtual Microsoft Windows environments. ● We generate revenue primarily from these subcontracts through fixed price service and support agreements. Revenues are earned and billed weekly and are generally paid within 45 days. The revenues are recognized at time of service. Cybersecurity projects and software Cybersecurity projects and software revenue includes the selling of licenses of Nodeware™ and third-party software, principally Webroot™ as well as performing cybersecurity assessments and testing. ● Nodeware™ and Webroot™ software offerings consist of fees generated from the use of the respective software by our customers. Revenue is recognized on a ratable basis over the contract term beginning on the date that our service is made available to the customer. Substantially all customers are billed in the month of the service and is cancellable upon notice per the respective agreements. Substantially all payments are electronically billed, and the billed amounts are paid to the Company instantaneously via an online payment platform. If payments are made in advance, revenues related to the term associated with our software licenses is recognized ratably over the contractual period. ● Some of our customers have the option to purchase additional subscription and support services at a stated price. These options generally do not provide a material right as they are priced at our standalone selling price. ● Cybersecurity assessments and testing services are considered distinct performance obligations when sold stand alone or with other products. These contracts generally have terms of one year or less. For substantially all these contracts, revenue is recognized when the specific performance obligation is satisfied. If the contract has multiple performance obligations, the revenue is recognized when the performance obligations are satisfied. Depending on the nature of the service, the amounts recognized are based on an allocation of the transaction price to each performance obligation based on a relative standalone selling price of the products sold. ● In substantially all agreements, a 50% to 75% down payment is required before work is initiated. Down payments received are deferred until revenue is recognized. Other IT consulting services Other IT consulting services consists of services such as project management and general IT consulting services. ● We generate revenue via fixed price service agreements. These are based on periodic billings of a fixed dollar amount for recurring services of a similar nature performed according to the contractual arrangements with clients. The revenues are recognized at time of service. Based on historical experience, the Company believes that collection is reasonably assured. During the three months ended March 31, 2019, sales to one client, including sales under subcontracts for services to several entities, accounted for 65.0% of total sales (69.9% - 2018) and 29.5% of accounts receivable at March 31, 2019 (10.5% - December 31, 2018). Leases - December 31, 2018 Effect of Change January 1, 2019 March 31, 2019 Right of Use Asset – Lease, net $ 0 $ 265,825 $ 265,825 $ 248,612 Operating Lease liability – Short-term $ 0 $ 68,848 $ 68,848 $ 70,196 Operating Lease liability – Long-term $ 0 $ 196,977 $ 196,977 $ 178,928

4. Sale of Certain Accounts Rec

4. Sale of Certain Accounts Receivable	3 Months Ended
	Mar. 31, 2019
Accounts Receivable, after Allowance for Credit Loss [Abstract]
Sale of Certain Accounts Receivable	The Company has available a financing line with a financial institution (the Purchaser), which enables the Company to sell accounts receivable to the Purchaser with full recourse against the Company. 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 and fees of the transaction and less any anticipated future loss in the value of the retained asset. The retained amount is 10% of the total accounts receivable invoice sold to the Purchaser. The fee is charged at prime plus 3.6% (effective rate of 9.1% at March 31, 2019) 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 three months ended March 31, 2019, the Company sold approximately $1,082,000 ($1,526,000 - March 31, 2018) of its accounts receivable to the Purchaser. As of March 31, 2019, approximately $286,000 ($363,000 - December 31, 2018) of these receivables remained outstanding. Additionally, as of March 31, 2019, the Company had approximately $94,000 available under the financing line with the financial institution ($0 - December 31, 2018). After deducting estimated fees, allowance for bad debts and advances from the Purchaser, the net receivable from the Purchaser amounted to $28,600, at March 31, 2019 ($36,213 - December 31, 2018), and is included in accounts receivable in the accompanying balance sheets. 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 $13,782 for the three months ended March 31, 2019 ($12,576 - March 31, 2018). These financing line fees are classified on the statements of operations as interest expense.

5. Earnings Per Share

5. Earnings Per Share	3 Months Ended
	Mar. 31, 2019
Earnings Per Share [Abstract]
Earnings Per Share	Basic earnings per share is based on the weighted average number of common shares outstanding during the periods presented. Diluted earnings per share is based on the weighted average number of common shares outstanding, as well as dilutive potential common shares which, in the Company’s case, comprise shares issuable under convertible notes payable and stock options. The treasury stock method is used to calculate dilutive shares, which reduces the gross number of dilutive shares by the number of shares purchasable from the proceeds of the options and warrants assumed to be exercised. In a loss period, the calculation for basic and diluted earnings per share is considered to be the same, as the impact of potential common shares is anti-dilutive. The following table sets forth the computation of basic and diluted net income (loss) per share for the three months ended: Three Months Ended March 31, 2019 2018 Numerator for basic and diluted net income (loss) per share: Net income (loss) $ 35,036 $ (87,000 ) Denominator for basic and diluted net income (loss) per share: Weighted average common shares outstanding 29,061,883 29,061,883 Basic and diluted net income (loss) per share $ .00 $ .00 Anti-dilutive shares excluded from net income (loss) per share calculation 28,123,143 28,402,990 Certain common shares issuable under stock options and convertible notes payable have been omitted from the diluted net income (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.

6. Stock Option Plans and Agree

6. Stock Option Plans and Agreements	3 Months Ended
	Mar. 31, 2019
Share-based Payment Arrangement [Abstract]
Stock Option Plans and Agreements	The Company has approved stock options plans and agreements covering up to an aggregate of 7,265,000 shares of common stock. Such options may be designated at the time of grant as either incentive stock options or nonqualified stock options. Stock based compensation consists of charges for stock option awards to employees, directors and consultants. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model. 50,000 options were granted for the three months ended March 31, 2019. No options were granted for the three months ended March 31, 2018. The following assumptions were used for the three months ended March 31, 2019. Risk-free interest rate 1.50 % Expected dividend yield 0 % Expected stock price volatility 100 % Expected life of options 2.50 years The Company recorded expense for options issued to employees and independent service providers of $260 and $0 for the three months ended March 31, 2019 and 2018, respectively. At March 31, 2019, there was no unrecognized compensation cost related to non-vested options. No options vested during the three months ended March 31, 2019. A summary of all stock option activity for the three months ended March 31, 2019 follows: Number of Options Outstanding Weighted Average Exercise Price Remaining Contractual Term Aggregate Intrinsic Value Outstanding at December 31, 2018 7,920,000 $ .09 Granted 50,000 .05 Forfeited (938,000 ) .23 Expired (65,000 ) .18 Outstanding at March 31, 2019 6,967,000 $ .07 3.5 years $ 2,000 At March 31, 2019 - vested or expected to vest and exercisable 6,942,000 $ .06 3.5 years $ 2,000

7. Related Party Accounts Recei

7. Related Party Accounts Receivable and Accrued Interest Payable	3 Months Ended
	Mar. 31, 2019
Related Party Transactions [Abstract]
Related Party Accounts Receivable and Accrued Interest Payable	Accrued Interest Payable - Included in accrued interest payable is accrued interest payable to related parties of $157,626 at March 31, 2019 ($148,703 - December 31, 2018).

8. Subsequent Event

8. Subsequent Event	3 Months Ended
	Mar. 31, 2019
Subsequent Events [Abstract]
Subsequent Event	Subsequent to March 31, 2019, the Company entered into a note payable agreement for up to $500,000 with a related party. The note has an interest rate of 7.5% and is due on August 31, 2026. The Company borrowed $200,000 which remains outstanding. As consideration for providing this financing, the Company granted a stock option to purchase a total of 2,500,000 common shares at an exercise price of $.02 or a total expense of $14,250.

3. Summary of Significant Acc_2

3. Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2019
Accounting Policies [Abstract]
Reclassifications	Reclassifications
Fair Value of Financial Instruments	Fair Value of Financial Instruments
Revenue	Revenue - The Company’s total revenue recognized from contracts from customers was comprised of three major services: Managed support services, Cybersecurity projects and software and Other IT consulting services. The categories depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. There were no material unsatisfied performance obligations at March 31, 2019 or 2018 for contracts with an expected original duration of more than one year. The following table summarizes the revenue recognized by the major services: Three Months Ended March 31, 2019 2018 Managed support services $ 1,228,747 $ 1,270,182 Cybersecurity projects and software 310,608 283,056 Other IT consulting services 148,439 41,280 Total sales $ 1,687,794 $ 1,594,518 Managed support services Managed support services consist of revenue primarily from our subcontracts for services to its end clients, principally a major establishment of the U.S. Government for which we manage one of the nation’s largest physical and virtual Microsoft Windows environments. ● We generate revenue primarily from these subcontracts through fixed price service and support agreements. Revenues are earned and billed weekly and are generally paid within 45 days. The revenues are recognized at time of service. Cybersecurity projects and software Cybersecurity projects and software revenue includes the selling of licenses of Nodeware™ and third-party software, principally Webroot™ as well as performing cybersecurity assessments and testing. ● Nodeware™ and Webroot™ software offerings consist of fees generated from the use of the respective software by our customers. Revenue is recognized on a ratable basis over the contract term beginning on the date that our service is made available to the customer. Substantially all customers are billed in the month of the service and is cancellable upon notice per the respective agreements. Substantially all payments are electronically billed, and the billed amounts are paid to the Company instantaneously via an online payment platform. If payments are made in advance, revenues related to the term associated with our software licenses is recognized ratably over the contractual period. ● Some of our customers have the option to purchase additional subscription and support services at a stated price. These options generally do not provide a material right as they are priced at our standalone selling price. ● Cybersecurity assessments and testing services are considered distinct performance obligations when sold stand alone or with other products. These contracts generally have terms of one year or less. For substantially all these contracts, revenue is recognized when the specific performance obligation is satisfied. If the contract has multiple performance obligations, the revenue is recognized when the performance obligations are satisfied. Depending on the nature of the service, the amounts recognized are based on an allocation of the transaction price to each performance obligation based on a relative standalone selling price of the products sold. ● In substantially all agreements, a 50% to 75% down payment is required before work is initiated. Down payments received are deferred until revenue is recognized. Other IT consulting services Other IT consulting services consists of services such as project management and general IT consulting services. ● We generate revenue via fixed price service agreements. These are based on periodic billings of a fixed dollar amount for recurring services of a similar nature performed according to the contractual arrangements with clients. The revenues are recognized at time of service. Based on historical experience, the Company believes that collection is reasonably assured. During the three months ended March 31, 2019, sales to one client, including sales under subcontracts for services to several entities, accounted for 65.0% of total sales (69.9% - 2018) and 29.5% of accounts receivable at March 31, 2019 (10.5% - December 31, 2018).
Leases	Leases - December 31, 2018 Effect of Change January 1, 2019 March 31, 2019 Right of Use Asset – Lease, net $ 0 $ 265,825 $ 265,825 $ 248,612 Operating Lease liability – Short-term $ 0 $ 68,848 $ 68,848 $ 70,196 Operating Lease liability – Long-term $ 0 $ 196,977 $ 196,977 $ 178,928

3. Summary of Significant Acc_3

3. Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2019
Accounting Policies [Abstract]
Disaggregation of revenue	Three Months Ended March 31, 2019 2018 Managed support services $ 1,228,747 $ 1,270,182 Cybersecurity projects and software 310,608 283,056 Other IT consulting services 148,439 41,280 Total sales $ 1,687,794 $ 1,594,518
Lease cost	December 31, 2018 Effect of Change January 1, 2019 March 31, 2019 Right of Use Asset – Lease, net $ 0 $ 265,825 $ 265,825 $ 248,612 Operating Lease liability – Short-term $ 0 $ 68,848 $ 68,848 $ 70,196 Operating Lease liability – Long-term $ 0 $ 196,977 $ 196,977 $ 178,928

5. Earnings Per Share (Tables)

5. Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2019
Earnings Per Share [Abstract]
Schedule of earnings per share, basic and diluted	Three Months Ended March 31, 2019 2018 Numerator for basic and diluted net income (loss) per share: Net income (loss) $ 35,036 $ (87,000 ) Denominator for basic and diluted net income (loss) per share: Weighted average common shares outstanding 29,061,883 29,061,883 Basic and diluted net income (loss) per share $ .00 $ .00 Anti-dilutive shares excluded from net income (loss) per share calculation 28,123,143 28,402,990

6. Stock Option Plans and Agr_2

6. Stock Option Plans and Agreements (Tables)	3 Months Ended
	Mar. 31, 2019
Share-based Payment Arrangement [Abstract]
Schedule of share-based payment award, stock options, valuation assumptions	Risk-free interest rate 1.50 % Expected dividend yield 0 % Expected stock price volatility 100 % Expected life of options 2.50 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, 2018 7,920,000 $ .09 Granted 50,000 .05 Forfeited (938,000 ) .23 Expired (65,000 ) .18 Outstanding at March 31, 2019 6,967,000 $ .07 3.5 years $ 2,000 At March 31, 2019 - vested or expected to vest and exercisable 6,942,000 $ .06 3.5 years $ 2,000

2. Management Plans - Capital_2

2. Management Plans - Capital Resources (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Net loss	$ 35,036	$ (87,000)
Stockholders' deficiency	$ (3,964,798)	$ (4,125,564)	$ (4,000,094)	$ (4,038,564)

3. Summary of Significant Acc_4

3. Summary of Significant Accounting Policies (Details) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Total sales	$ 1,687,794	$ 1,594,518
Managed Support Services
Total sales	1,228,747	1,270,182
Cybersecurity Projects and Software
Total sales	310,608	283,056
Other IT Consulting Services
Total sales	$ 148,439	$ 41,280

3. Summary of Significant Acc_5

3. Summary of Significant Accounting Policies (Details 1) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Right of Use Asset – Lease, net	$ 248,612	$ 0
Operating Lease liability – Short-term	70,196	0
Operating Lease liability – Long-term	$ 178,928	0
Restatement Adjustment [Member]
Right of Use Asset – Lease, net		265,825
Operating Lease liability – Short-term		68,848
Operating Lease liability – Long-term		196,977
As Restated [Member]
Right of Use Asset – Lease, net		265,825
Operating Lease liability – Short-term		68,848
Operating Lease liability – Long-term		$ 196,977

5. Earnings Per Share (Details)

5. Earnings Per Share (Details) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Earnings Per Share [Abstract]
Net income (loss)	$ 35,036	$ (87,000)
Weighted average common shares outstanding	29,061,883	29,061,883
Basic and diluted net income (loss) per share	$ 0	$ 0
Anti-dilutive shares excluded from net loss per share calculation	28,123,143	28,402,990

6. Stock Option Plans and Agr_3

6. Stock Option Plans and Agreements (Details)	3 Months Ended
	Mar. 31, 2019
Share-based Payment Arrangement [Abstract]
Risk-free interest rate	1.50%
Expected dividend yield	0.00%
Expected stock price volatility	100.00%
Expected life of options	2 years 6 months

6. Stock Option Plans and Agr_4

6. Stock Option Plans and Agreements (Details 1)	3 Months Ended
	Mar. 31, 2019USD ($)$ / sharesshares
Share-based Payment Arrangement [Abstract]
Number of options outstanding, beginning | shares	7,920,000
Number of options granted | shares	50,000
Number of options forfeited | shares	(938,000)
Number of options expired | shares	(65,000)
Number of options outstanding, ending | shares	6,967,000
Number of options vested or expected to vest | shares	6,942,000
Weighted average exercise price outstanding, beginning | $ / shares	$ 0.09
Weighted average exercise price granted | $ / shares	0.05
Weighted average exercise price forfeited | $ / shares	0.23
Weighted average exercise price expired | $ / shares	0.18
Weighted average exercise price outstanding, ending | $ / shares	0.07
Weighted average exercise price vested or expected to vest | $ / shares	$ 0.06
Weighted-average remaining contractual term outstanding	3 years 6 months
Weighted-average remaining contractual term vested or expected to vest	3 years 6 months
Aggregate intrinsic value outstanding | $	$ 2,000
Aggregate intrinsic value vested or expected to vest | $	$ 2,000

7. Related Party Accounts Rec_2

7. Related Party Accounts Receivable and Accrued Interest Payable (Details Narrative) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Related Party Transactions [Abstract]
Accrued interest payable, related parties, current	$ 157,626	$ 148,703