| 3. Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
| Mar. 31, 2020 |
| Accounting Policies [Abstract] | |
| Reclassifications | The Company reclassifies amounts in its financial
statements to comply with recently adopted accounting pronouncements. |
| Fair Value of Financial Instruments | The carrying amounts reported in the balance
sheets for cash, accounts receivable, accounts payable, and accrued expenses approximate fair value because of the immediate short-term
maturity of these financial instruments. The carrying value of notes payable and convertible notes payable approximates the fair
value based on rates currently available from financial institutions and various lenders. |
| 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, 2020 or 2019 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,
2020 2019
Managed support services $ 1,141,761 $ 1,228,747
Cybersecurity projects and software 646,834 310,608
Other IT consulting services 111,000 148,439
Total sales $ 1,899,595 $ 1,687,794 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. Upon completion of performance obligation of service, payment terms are 30 days. 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, 2020,
sales to one client, including sales under subcontracts for services to several entities, accounted for 58.4% of total sales (65.0%
- 2019) and 48.9% of accounts receivable at March 31, 2020 (22.1% - December 31, 2019). |
| Capitalization of Software for Resale | The Company capitalizes the software development
costs for software to be sold, leased, or otherwise marketed. Capitalization begins upon the establishment of technological feasibility
of a new product or enhancements to an existing product, which is generally the completion of a working prototype that has been
certified as having no critical bugs and is a release candidate. Costs incurred after the enhancement has reached technological
feasibility and before it is released in the market are capitalized and are primarily labor costs related to coding and testing.
Amortization begins once the software is ready for its intended use, generally based on the pattern in which the economic benefits
will be consumed. Costs associated with major upgrade releases begin amortization in the month after release. The amortization
period is three years. As of March 31, 2020, there was $251,737 of costs capitalized ($194,215 as of December 31, 2019) and $19,077
of accumulated amortization ($9,539 as of December 31, 2019). During the quarter ended March 31, 2020 there was $9,538 of amortization
expense recorded ($0 in 2019). Costs incurred prior to reaching technological feasibility are expensed as incurred. Labor amounts
expensed related to these development costs amounted to approximately $17,400 and $49,100 during the quarter ended March 31, 2020
and 2019, respectively. |
| Leases | 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 new standard requires entities to recognize a liability for their lease obligations
and a corresponding right-of-use asset, initially measured at the present value of the lease payments. Subsequent accounting depends
on whether the agreement is deemed to be a financing or operating lease. For operating leases, a lessee recognizes its total lease
expense as an operating expense over the lease term. For financing leases, a lessee recognizes amortization of the right-of-use
asset as an operating expense over the lease term separately from interest on the lease liability. The ASU requires that assets
and liabilities be presented and disclosed separately, and the liabilities must be classified appropriately as current and noncurrent.
The ASU further requires additional disclosure of certain qualitative and quantitative information related to lease agreements.
The ASU was effective for the Company beginning on January 1, 2019, at which time we adopted the new standard using the modified
retrospective approach as of the date of adoption. Upon adoption, we recognized a right-of-use asset of $265,825 and a lease
liability of $265,825 related to the existing office lease that is classified as an operating lease. Supplemental balance sheet
information related to the lease on March 31, 2020 and December 31, 2019 is as follows:
Description Classification March 31, 2020 December 31, 2019
Right of Use Asset – Lease, net Other assets $ 177,189 $ 195,441
Operating Lease liability – Short-term Accrued liabilities 75,809 74,373
Operating Lease liability – Long-term Other long-term liabilities 103,119 122,605 |
