Astea International (ATEA) 10-Q 13 Aug 19 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2019	Aug. 08, 2019
Cover [Abstract]
Entity Registrant Name	ASTEA INTERNATIONAL INC
Entity Central Index Key	0000945989
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Shell Company	false
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Ex Transition Period	false
Entity Common Stock, Shares Outstanding		3,649,049
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Entity Address, State or Province	PA
Entity Address, Country	US

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)	Jun. 30, 2019	Dec. 31, 2018	[1]
Current assets:
Cash and cash equivalents	$ 1,839,000	$ 1,276,000
Accounts receivables, net of reserves allowance of $91,000 (unaudited) and $92,000, respectively	5,053,000	6,294,000
Prepaid expenses and other current assets	368,000	429,000
Deferred hosting costs	1,464,000	992,000
Total current assets	8,724,000	8,991,000
Property and equipment, net	161,000	89,000
Capitalized software development costs, net	4,534,000	4,599,000
Restricted cash	72,000	72,000
Other long-term assets	528,000	517,000
Right-of-use assets	2,567,000	0
Total assets	16,586,000	14,268,000
Current liabilities:
Accounts payable and accrued expenses	4,101,000	4,137,000
Current lease liabilities	1,017,000	0
Deferred revenues	10,613,000	10,521,000
Total current liabilities	15,731,000	14,658,000
Long-term liabilities:
Borrowings under line of credit	2,647,000	2,669,000
Long-term accrued expenses	359,000	323,000
Deferred tax liability	49,000	49,000
Deferred revenues, net of current portion	1,259,000	763,000
Lease liabilities, net of current portion	1,550,000	0
Total long-term liabilities	5,864,000	3,804,000
Commitments and contingencies
Stockholders' deficit:
Common stock $.01 par value, 25,000,000 shares authorized; issued 3,691,000 and 3,659,000 shares; outstanding 3,649,000 and 3,617,000 shares, respectively	37,000	37,000
Additional paid-in-capital	31,333,000	31,455,000
Accumulated deficit	(34,875,000)	(34,344,000)
Accumulated other comprehensive loss	(1,312,000)	(1,150,000)
Treasury stock at cost, 42,000 common shares	(208,000)	(208,000)
Total stockholders' deficit	(5,009,000)	(4,194,000)
Total liabilities and stockholders' deficit	16,586,000	14,268,000
Series A Convertible Preferred Stock [Member]
Stockholders' deficit:
Preferred stock	8,000	8,000
Series B Convertible Preferred Stock [Member]
Stockholders' deficit:
Preferred stock	$ 8,000	$ 8,000
[1]	Derived from audited financial statements.

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Current assets:
Accounts receivable, reserves allowance	$ 91,000	$ 92,000
Stockholders' deficit:
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Preferred stock, shares outstanding (in shares)	1,623,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	25,000,000	25,000,000
Common stock, shares issued (in shares)	3,691,000	3,659,000
Common stock, shares outstanding (in shares)	3,649,000	3,617,000
Treasury stock at cost (in shares)	42,000	42,000
Series A Convertible Preferred Stock [Member]
Stockholders' deficit:
Preferred stock, shares issued (in shares)	826,000	826,000
Preferred stock, shares outstanding (in shares)	826,000	826,000
Series B Convertible Preferred Stock [Member]
Stockholders' deficit:
Preferred stock, shares issued (in shares)	797,000	797,000
Preferred stock, shares outstanding (in shares)	797,000	797,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenues:
Revenues	$ 6,415,000	$ 6,632,000	$ 13,035,000	$ 13,328,000
Costs of revenues:
Cost of revenues	4,346,000	4,174,000	8,693,000	8,660,000
Gross profit	2,069,000	2,458,000	4,342,000	4,668,000
Operating Expenses:
Product development	443,000	153,000	606,000	367,000
Sales and marketing	990,000	977,000	1,966,000	1,978,000
General and administrative	1,123,000	948,000	2,124,000	1,896,000
Total operating expenses	2,556,000	2,078,000	4,696,000	4,241,000
(Loss) income from operations	(487,000)	380,000	(354,000)	427,000
Interest expense, net	65,000	64,000	139,000	99,000
(Loss) income before income taxes	(552,000)	316,000	(493,000)	328,000
Income tax expense	34,000	12,000	38,000	18,000
Net (loss) income	(586,000)	304,000	(531,000)	310,000
Preferred dividend	125,000	125,000	250,000	250,000
Net (loss) income allocable to common stockholders	$ (711,000)	$ 179,000	$ (781,000)	$ 60,000
Basic and diluted (loss) earnings per share allocable to common stockholders (in dollars per share)	$ (0.20)	$ 0.05	$ (0.22)	$ 0.02
Weighted average shares outstanding used in computing basic (loss) earnings per common share (in shares)	3,617,000	3,594,000	3,617,000	3,594,000
Weighted average shares outstanding used in computing diluted (loss) earnings per common share (in shares)	3,617,000	3,773,000	3,617,000	3,773,000
Software License Fees [Member]
Revenues:
Revenues	$ 462,000	$ 892,000	$ 1,162,000	$ 1,311,000
Costs of revenues:
Cost of revenues	922,000	497,000	1,624,000	1,226,000
Subscriptions [Member]
Revenues:
Revenues	1,233,000	864,000	2,459,000	1,692,000
Costs of revenues:
Cost of revenues	304,000	191,000	559,000	425,000
Services and Maintenance [Member]
Revenues:
Revenues	4,720,000	4,876,000	9,414,000	10,325,000
Costs of revenues:
Cost of revenues	$ 3,120,000	$ 3,486,000	$ 6,510,000	$ 7,009,000

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (Unaudited) [Abstract]
Net (loss) income	$ (586,000)	$ 304,000	$ (531,000)	$ 310,000
Other comprehensive (loss) income:
Foreign currency translation adjustment	(116,000)	93,000	(162,000)	(12,000)
Comprehensive (loss) income	$ (702,000)	$ 397,000	$ (693,000)	$ 298,000

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT (Unaudited) - USD ($)	Preferred Stock [Member]Series A Convertible Preferred Stock [Member]	Preferred Stock [Member]Series B Convertible Preferred Stock [Member]	Common Stock [Member]	Additional Paid-In-Capital [Member]	Accumulated Other Comprehensive Loss [Member]	Accumulated Deficit [Member]	Treasury Stock [Member]	Total
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect from change in accounting	$ 0	$ 0	$ 0	$ 0	$ 0	$ 630,000	$ 0	$ 630,000
Beginning Balance at Dec. 31, 2017	8,000	8,000	36,000	31,710,000	(1,055,000)	(35,338,000)	(208,000)	(4,839,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	0	0	0	0	0	6,000	0	6,000
Series A and B preferred stock Dividends	0	0	0	(125,000)	0	0	0	(125,000)
Stock-based compensation	0	0	0	31,000	0	0	0	31,000
Other comprehensive (loss) income	0	0	0	0	(104,000)	0	0	(104,000)
Ending Balance at Mar. 31, 2018	8,000	8,000	36,000	31,616,000	(1,159,000)	(34,702,000)	(208,000)	(4,401,000)
Beginning Balance at Dec. 31, 2017	8,000	8,000	36,000	31,710,000	(1,055,000)	(35,338,000)	(208,000)	(4,839,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income								310,000
Ending Balance at Jun. 30, 2018	8,000	8,000	36,000	31,532,000	(1,067,000)	(34,398,000)	(208,000)	(4,089,000)
Beginning Balance at Mar. 31, 2018	8,000	8,000	36,000	31,616,000	(1,159,000)	(34,702,000)	(208,000)	(4,401,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	0	0	0	0	0	304,000	0	304,000
Series A and B preferred stock Dividends	0	0	0	(125,000)	0	0	0	(125,000)
Stock-based compensation	0	0	0	41,000	0	0	0	41,000
Other comprehensive (loss) income	0	0	0	0	92,000	0	0	92,000
Ending Balance at Jun. 30, 2018	8,000	8,000	36,000	31,532,000	(1,067,000)	(34,398,000)	(208,000)	(4,089,000)
Beginning Balance at Dec. 31, 2018	8,000	8,000	37,000	31,455,000	(1,150,000)	(34,344,000)	(208,000)	(4,194,000)	[1]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	0	0	0	0	0	55,000	0	55,000
Series A and B preferred stock Dividends	0	0	0	(125,000)	0	0	0	(125,000)
Stock-based compensation	0	0	0	17,000	0	0	0	17,000
Other comprehensive (loss) income	0	0	0	0	(46,000)	0	0	(46,000)
Ending Balance at Mar. 31, 2019	8,000	8,000	37,000	31,347,000	(1,196,000)	(34,289,000)	(208,000)	(4,293,000)
Beginning Balance at Dec. 31, 2018	8,000	8,000	37,000	31,455,000	(1,150,000)	(34,344,000)	(208,000)	(4,194,000)	[1]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income								(531,000)
Ending Balance at Jun. 30, 2019	8,000	8,000	37,000	31,333,000	(1,312,000)	(34,875,000)	(208,000)	(5,009,000)
Beginning Balance at Mar. 31, 2019	8,000	8,000	37,000	31,347,000	(1,196,000)	(34,289,000)	(208,000)	(4,293,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	0	0	0	0	0	(586,000)	0	(586,000)
Exercise of stock options	0	0	0	59,000	0	0	0	59,000
Series A and B preferred stock Dividends	0	0	0	(125,000)	0	0	0	(125,000)
Stock-based compensation	0	0	0	52,000	0	0	0	52,000
Other comprehensive (loss) income	0	0	0	0	(116,000)	0	0	(116,000)
Ending Balance at Jun. 30, 2019	$ 8,000	$ 8,000	$ 37,000	$ 31,333,000	$ (1,312,000)	$ (34,875,000)	$ (208,000)	$ (5,009,000)
[1]	Derived from audited financial statements.

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Cash flows from operating activities:
Net (loss) income	$ (531,000)	$ 310,000
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization	1,606,000	1,238,000
Non cash lease expense	566,000	0
Amortization of deferred financing costs	15,000	14,000
Amortization of deferred hosting costs	179,000	27,000
Decrease in provision for doubtful accounts	(1,000)	0
Stock-based compensation	69,000	72,000
Changes in operating assets and liabilities:
Receivables	1,257,000	715,000
Prepaid expenses and other	41,000	(126,000)
Deferred hosting costs	(652,000)	(641,000)
Other assets	(11,000)	(7,000)
Accounts payable and accrued expenses	(170,000)	(206,000)
Deferred revenues	547,000	27,000
Lease liabilities	(566,000)	0
Net cash provided by operating activities	2,349,000	1,423,000
Cash flows from investing activities:
Purchases of property and equipment	(109,000)	(34,000)
Capitalized software development costs	(1,504,000)	(1,785,000)
Net cash used in investing activities	(1,613,000)	(1,819,000)
Cash flows from financing activities:
Dividend payments on preferred stock	(200,000)	(55,000)
Payment on the term note from Bridge Bank	0	(225,000)
Payment on line of credit from Bridge Bank	(9,100,000)	(5,058,000)
Proceeds on line of credit from Bridge Bank	9,078,000	5,150,000
Proceeds from exercise of stock options	59,000	0
Net cash used in financing activities	(163,000)	(188,000)
Effect of exchange rate changes on cash	(10,000)	24,000
Net increase (decrease) in cash, cash equivalents and restricted cash	563,000	(560,000)
Cash, cash equivalents and restricted cash, beginning of period	1,348,000	2,001,000
Cash, cash equivalents and restricted cash, end of period	1,911,000	1,441,000
Supplemental disclosure of cash flows information:
Cash paid for interest	124,000	97,000
Supplemental disclosure of non-cash flows information:
Accrued preferred dividends	$ 250,000	$ 250,000

BASIS OF PRESENTATION

BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2019
BASIS OF PRESENTATION [Abstract]
BASIS OF PRESENTATION	1. BASIS OF PRESENTATION The condensed consolidated financial statements at June 30, 2019 and for the six month periods ended June 30, 2019 and 2018 of Astea International Inc. and subsidiaries (“Astea” or the "Company") are unaudited and reflect all adjustments (consisting only of normal recurring adjustments) which are, in the opinion of management, necessary for a fair presentation of the financial position and operating results for the interim periods. The accompanying unaudited financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and note disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles have been omitted pursuant to the rules and regulations of the SEC for quarterly reports on Form 10-Q. It is suggested that these financial statements be read in conjunction with the financial statements and the notes thereto, included in the Company’s latest annual report (Form 10-K) and our Form 10-Q’s for the quarters ended June 30, 2018, September 30, 2018 and March 31, 2019. The interim financial information presented is not necessarily indicative of results expected for the entire year ending December 31, 2019. Comparability The condensed consolidated financial statements for the period ended June 30, 2019 are presented under the new Lease standard, while the comparative period presented has not been adjusted and continues to be reported in accordance with the previous standard. The Lease standard requires lessees to recognize a right-of-use ("ROU") asset and lease liability for all leases on the condensed consolidated balance sheet beginning January 1, 2019 with no modification to prior periods. Recently Adopted Accounting Standards- Leases In February 2016, the FASB issued guidance for accounting for leases. The guidance requires lessees to recognize assets and liabilities related to long-term leases on the balance sheet and expands disclosure requirements regarding leasing arrangements. The guidance was effective for the Company on January 1, 2019. The guidance was adopted on a modified retrospective basis and provides for certain practical expedients. The adoption of this guidance changed the way we account for our operating leases, which resulted in the Company recording the future benefits of those leases as an asset and the related minimum lease payments as a liability on our condensed consolidated balance sheets. The Company does not finance purchases of equipment, but it does have operating leases for office space and equipment in all locations. The Company has identified all material operating lease agreements. It has also reviewed all significant contracts for embedded leases. No embedded leases were identified during this process. We determine if an arrangement is a lease at inception. All leases to which the Company is a party are operating leases. Beginning January 1, 2019, the operating leases are being reported on our condensed consolidated balance sheet as operating lease ROU assets and current and noncurrent operating lease liabilities. The ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities will be recognized at the commencement date based on the present value of the lease payments over the lease term. As none of our leases provide an implicit interest rate, we used our incremental borrowing rate based on the information available at the commencement date in calculating the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise the option. The new guidance provides a number of optional practical expedients in transition. The Company elected the package of practical expedients which permitted us under the new guidance not to reassess our prior conclusions about lease identification, lease classification and initial direct costs. Astea did not elect the use-of hindsight or the practical expedient pertaining to land easements; the latter not being applicable to us. On adoption, we recognized operating liabilities of $3,132,000, with corresponding ROU assets of the same amount based on the present value of the remaining minimum rental payments under current leasing standards for existing operating leases. The new guidance also provides practical expedients for an entity’s ongoing accounting. We elected the short-term lease recognition exemption for one of our office equipment leases. This means, for those leases that qualify, we will not recognize ROU assets or lease liabilities. This includes not recognizing ROU assets or lease liabilities for existing short-term leases on those assets in transition. We elected the practical expedient to not separate lease and non-lease components for all of our leases. As expected, the adoption of this guidance resulted in additional lease-related disclosures in the footnotes to our condensed consolidated financial statements (see Note 5). Cash, cash equivalents and restricted cash The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheet that sum to the total of the same such amounts presented on the condensed consolidated statement of cash flows: June 30, 2019 December 31, 2018 Cash and cash equivalents $ 1,839,000 $ 1,276,000 Restricted cash 72,000 72,000 Total cash, cash equivalents, and restricted cash reported on the condensed consolidated statements of cash flows $ 1,911,000 $ 1,348,000 Amounts included in restricted cash represent funds required to be set aside by a contractual agreement with the building leasing companies in Europe. The restrictions will lapse when the building leases expire. Operating Matters and Liquidity The Company has a history of net losses and an accumulated deficit of $34,875,000 as of June 30, 2019. In the first six months of 2019, the Company had a net loss of $531,000 compared to income of $310,000 generated in the first six months of 2018. Further, at June 30, 2019, the Company had a working capital ratio of .57:1, with cash and cash equivalents of $1,839,000 compared to December 31, 2018 when the Company had cash and cash equivalents of $1,276,000. The increase in cash and cash equivalents for the first six months 2019 was primarily driven by an increase in cash provided by operations in 2019 compared to 2018 and a decrease in capitalized software development costs, partially offset by an increase in the dividend payment. As of June 30, 2019, the Company owed $2,647,000 against the line of credit from . As of June 30, 2019, the availability under the line of credit was $203,000. The Company has projected revenues that management believes will provide sufficient funds along with the additional borrowings available under its line of credit to sustain its continuing operations through at least August 15, 2020. The Second Loan Agreement increased the availability under the line of credit from $2,400,000 to $2,850,000 (see Note 4). The Company was in compliance with the WAB financial and liquidity covenant as of June 30, 2019 and expects to be able to continue to comply with the required covenants under the modified agreement with WAB for at least the next year. As a result, the amount due to WAB under the line of credit as of June 30, 2019 were classified in the accompanying condensed consolidated balance sheet in accordance with the repayment terms stipulated in the agreement with WAB. Our primary cash requirements are to fund operations However, projections of future cash needs and cash flows are subject to risks and uncertainty. Management’s current operating plan is to maintain and/or reduce operating expenses in order to be aligned with expected revenues. The primary area of focus will continue to be headcount and costs from outside consultants. The Company remains focused on maximizing revenue from its revenue generating resources and will continue to repurpose, if necessary, certain personnel to become billable so the Company can continue to improve its liquidity. The Company has a substantial professional services backlog that resulted from new customers added in 2018 as well as upgrade projects from our existing customers as they move to the latest version of Astea Alliance. In 2019, the Company will continue to consider ways to reduce operating expenses in certain areas of the Company in order to maintain its liquidity. However, management has implemented new marketing initiatives which have increased our spending in this area in 2019. We believe the new initiatives will directly contribute to increasing new business, which is essential to our growth. Operations will generate enough cash to meet obligations at least through August 15, 2020. As noted above, if the Company’s actual results fall short of expectations, the Company will make cost adjustments to improve the Company’s operating cash flows. Our operations are subject to certain risks and uncertainties including, among others, current and potential competitors with greater resources, dependence on our significant and existing customer base, closing license and subscription sales in a timely manner, lack of a history of consistently generating net income and uncertainty of future profitability, and possible fluctuations in financial results. Revenue from Contracts with Customers Astea’s revenue is principally recognized from three sources: (i) licensing arrangements, (ii) subscription services and (iii) services and maintenance. The Company markets its products primarily through its direct sales force and resellers. License agreements do not provide for a right of return, and historically, product returns have not been significant. Revenue from Contracts with Customers 1. Identify the contract with a customer. 2. Identify the performance obligations in the contract. 3. Determine the transaction price. 4. Allocate the transaction price to performance obligations in the contract. 5. Recognize revenue when or as the Company satisfies a performance obligation. The Company satisfies performance obligations as discussed in further detail below. Revenue is recognized at the time the related performance obligation is satisfied by transferring a promised good or service to a customer. The Company recognizes revenue from license sales when the above criteria are met. The Company generally uses written contracts as a means to establish the terms and conditions by which our products, services and maintenance support are sold to our customers. The Company satisfies the performance obligation when the license key has been delivered electronically to the customer. If these criteria are not met, then revenue is deferred until such criteria are met or until the period(s) over which the last performance obligation is delivered. The Company recognizes revenues from maintenance ratably over the term of the underlying maintenance contract term. The term of the maintenance contract is usually one year. Renewals of maintenance contracts create new performance obligations that are satisfied over the contract term. Revenues from professional services mostly consist of time and material services. Certain professional service contracts are performed on a fixed price basis and revenue is recognized using the percentage of completion method. However, fixed price contracts are only utilized on rare occasions. Performance obligations are satisfied, and revenues are recognized, when the services are provided or when the service term has expired. In subscription based arrangements, even though customers use the software element, they generally do not have a contractual right to take possession of the software at any time during the hosting period without significant penalty to either run the software on its own hardware or contract with an unrelated third party to host the software. Accordingly, these software as a service (“SaaS”) arrangements, including the software license fees within the arrangements, are accounted for as subscription services provided all other revenue recognition criteria have been met. The subscription revenue is recognized on a straight-line basis over the performance obligation. The Company recognizes subscription revenue once a customer goes-live ratably over the remaining contract period or customer life whichever is longer. The contract period is typically 1 to 3 years. The average expected life of a customer is 2 years. The average customer takes about 8 to 10 months to go live. The Company expects the average life of a customer to increase as more customers begin to renew their subscription contracts. When implementation, consulting and training services are bundled with the subscription based arrangement, these services are recognized over the life of the initial contract (performance obligation), once the project goes live. In contracts with multiple performance obligations, the Company accounts for individual performance obligations separately, if they are distinct. The Company allocates the transaction price to each performance obligation based on its relative standalone selling price out of total consideration of the contract. For maintenance and support, the Company determines the standalone selling price based on the price at which the Company separately sells a renewal contract. The Company determines the standalone selling price for sales of licenses using the residual approach. For professional services, the Company determines the standalone selling prices based on the price at which the Company separately sells those services. The guidance prefers that revenue in a contract with multiple performance obligations use the adjusted market approach which includes SSP or TPE or expected cost plus margin approach as the methodology for allocating revenues to software. The Company uses the Residual Approach for allocating the revenues from a contract to the license component of the sale. Due to competition, highly variable pricing, customer demographics, varying size of our customers, and other such factors, the Company’s selling prices are considered uncertain for each perpetual license sale. Therefore, SSP is not an appropriate methodology as it relates to our license revenue. In terms of TPE as a basis to price our software, our product is unique and expansive in terms of the system’s inherent functionality. There are no directly comparable products in the marketplace today which we could use as the basis to set our standard license pricing based on a comparison with other vendors. In addition, most of the companies with whom we compete, are privately owned, which prevents us from obtaining reliable TPE. Accordingly, the guidance permits the Company to use the Residual Method for allocating selling price if the first two preferable choices cannot be used. The residual between the total transaction price and the observable standalone selling prices of those performance obligations with observable standalone selling prices is considered to be the estimated standalone selling price of the goods or services underlying the performance obligation. Astea commonly sells its software products bundled with maintenance and professional services. As noted above, the guidance requires an entity to allocate the transaction price to the distinct performance obligations in a contract on a relative SSP basis. Under the guidance, “…an entity shall determine the standalone selling price at contract inception of the distinct good or service underlying each performance obligation in the contract and allocate the transaction price in proportion to those standalone selling prices.” SSP is defined as the price at which an entity would sell a promised good or service separately to a customer. Astea has a history of selling maintenance renewals and professional services on a standalone basis. Therefore, the Company utilizes SSP for its performance obligations as it relates to service and maintenance revenue. In addition, due to the Company having different maintenance and service rates in other parts of the world in which it operates, the Company has developed a reasonable range for its SSP for maintenance and services rather than a single point. The incremental costs of obtaining a customer contract (i.e., those costs related to obtaining the customer contract that would not have been incurred if the customer contract was not obtained), such as a sales commission, should be capitalized if the Company expects to recover those costs (based on net future cash flows from the contract and expected contract renewals). The Company may expense the incremental costs of obtaining a contract if the amortization period would otherwise be one year or less. Since sales commissions are costs that are incremental and the amortization of sales commissions would be one year or less, the Company will continue to expense these items as incurred. Costs of obtaining a customer contract that are not incremental (i.e., costs related to obtaining the customer contract that would have been incurred regardless of whether the customer contract had been obtained), such as travel costs incurred to present the customer proposal, should only be capitalized if those costs are explicitly chargeable to the customer regardless of whether the entity enters into a contract with the customer. Otherwise, such costs are expensed as incurred. The Company will continue to expense these costs as they are incurred. Once live, we recognize the deferred implementation costs related to that customer ratably over the remaining expected life of the customer contract or two years, whichever is longer. At this point, based on the Company’s relatively short time-span as a provider of a hosted solution, our analysis shows that the average lifespan of an Astea hosted customer is 2 years. Therefore, we amortize the deferred cost over 2 years or the remaining life of the contract, whichever is longer. This is consistent with the revenue recognition methodology used for the subscription service revenue for that customer. The Company satisfies performance obligations as discussed in further detail below. Revenue is recognized at the time the related performance obligation is satisfied by transferring a promised service to a customer. We believe that our accounting estimates used in applying our revenue recognition are critical because: • the determination that it is probable that the customer will pay for the products and services purchased is inherently judgmental and includes credit risk; • determining the performance obligations and transaction price to certain elements in multiple-element arrangements is complex; • the determination of whether a service is essential to the functionality of the software is complex and could potentially create a new performance obligation; and • the estimated customer life of subscription services. Changes in the aforementioned items could have a material effect on the type and timing of revenue recognized. In addition, Company’s payment terms and conditions vary by contract and size of customer, although terms generally include a requirement of payment within 30 to 60 days. In instances where the timing of revenue recognition differs from the timing of invoicing, the Company has determined that its contracts generally do not include a significant financing component. The primary purpose of invoicing terms is to provide customers with simplified and predictable ways of purchasing our products and services, and not to facilitate financing arrangements. The Company generally has not experienced any material losses related to receivables from individual customers, or groups of customers. Due to these factors, no additional credit risk beyond amounts provided by the allowance for doubtful accounts is believed by management to be probable in the Company’s accounts receivable. The Company has not adjusted revenues for customers related to credit risk. At June 30, 2019, there was one customer that accounted for 26% of total net accounts receivable. At December 31, 2018, no single customer accounted for 10% or more of net accounts receivable. For the three months ended June 30, 2019, there was one customer that accounted for 10% of total revenue. For the six months ended June 30, 2019 and the three and six months ends June 30, 2018, no individual customer accounted for 10% or more of total revenue. We present taxes assessed by a governmental authority including sales, use, value added and excise taxes on a net basis and therefore the presentation of these taxes is excluded from our revenues and is included in accrued expenses in the accompanying condensed consolidated balance sheets until such amounts are remitted to the taxing authority. The Company is engaged in the design, development, marketing and support of its service management software solutions. All revenues result from selling of license (perpetual and subscription) software products and related professional services and customer support services. Accordingly, the Company considers itself to have one reporting segment. The Company’s chief decision maker further reviews financial information presented on a consolidated basis to determine if revenue can be further disaggregated in order to make operating decisions and assessing financial performance. It was determined that all revenue recognized in our consolidated statements of operations is considered to be revenue from contracts with customers, which can be disaggregated by both the timing of revenue recognition and geographic regions (see Note 9 of the condensed consolidated financial statements for disaggregated revenues by geographic regions). The following tables depicts the Company’s disaggregation of revenue: Three months ended June 30 Six months ended June 30, Timing of Revenue Recognition 2019 2018 2019 2018 Performance obligations transferred at a point in time $ 462,000 $ 892,000 $ 1,162,000 $ 1,311,000 Performance obligations transferred over time 4,405,000 4,698,000 8,886,000 9,937,000 Performance obligations transferred over time initiated at go-live 1,548,000 1,042,000 2,987,000 2,080,000 Total revenues $ 6,415,000 $ 6,632,000 $ 13,035,000 $ 13,328,000 The performance obligations transferred at a point in time relate to perpetual license revenue for which there is no deferred revenue as of June 30, 2019 or 2018. The performance obligations transferred over time consist of professional services that are recognized based on time and materials, as the services are performed. The performance obligations for support services are recognized ratably over time based on the contract life, except for a few fixed price contracts which are recognized based on the achievement of certain milestones. If the customer pays in advance, service revenue is deferred until the performance obligations are met. For support services, the fee is paid in advance of the performance obligation. Accordingly, the Company has recorded deferred revenue from fixed price contracts and support services of $7,287,000 and $6,744,000 as of June 30, 2019 and 2018, respectively. Performance obligations transferred over time, initiated at go-live, relate to our subscription hosting and our subscription professional services for the implementation. No performance obligation is recognized until the customer is live and has access to the subscription services. Once live, the performance obligations are recognized over time, which is either 2 years, the average customer life, or the remaining contract life of the customer, whichever is longer. Because subscription fees are paid in advance, and professional services fees are paid as the services are performed, the revenue from both are deferred until the date in which the customer goes live. The Company has deferred revenue recorded for performance obligations transferred over time, initiated at go-live for hosting and hosting services for $4,585,000 and $4,766,000 as of June 30, 2019 and 2018, respectively. The long term deferred revenue reported as $1,259,000 and $1,711,000 as of June 30, 2019 and 2018, respectively, consists of the portion of revenue that will be recognized beyond one year of the balance sheet date for hosting implementation services.

NEW ACCOUNTING PRONOUNCEMENTS N

NEW ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED	6 Months Ended
	Jun. 30, 2019
NEW ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED [Abstract]
NEW ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED	2. NEW ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED In August 2018, the FASB issued guidance that requires a customer in a cloud computing arrangement (i.e. hosting arrangement) that is a service contract to follow the internal-use software guidance to determine which implementation costs to capitalize as assets or expense as incurred. This guidance requires that certain costs incurred during the application development stage be capitalized and other costs incurred during the preliminary project and post-implementation stages be expensed as incurred. The guidance is effective for annual periods beginning after December 15, 2019 with early adoption permitted. The adoption of this guidance is not expected to have a material impact on our condensed consolidated financial statements. In August 2018, the FASB issued guidance modifying the disclosure requirements on fair value measurements. The amendments add, modify, and eliminate certain disclosure requirements on fair value measurements. The guidance is effective for reporting periods beginning after December 15, 2019, including interim periods within that fiscal year. Early adoption is permitted, including adoption in an interim period. We are currently evaluating the impact, if any, that the adoption of this guidance will have on our condensed consolidated financial statements. In June 2016, the FASB issued an accounting standard update that requires measurement and recognition of expected credit losses for financial assets held based on historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The accounting standard update will be effective for us beginning January 1, 2020. We expect to adopt this accounting standard update on a modified retrospective basis and we are currently evaluating the impact of this accounting standard update on our condensed consolidated financial statements

CONCENTRATION OF CREDIT RISK

CONCENTRATION OF CREDIT RISK	6 Months Ended
	Jun. 30, 2019
CONCENTRATION OF CREDIT RISK [Abstract]
CONCENTRATION OF CREDIT RISK	3. CONCENTRATION OF CREDIT RISK Financial instruments, which potentially subject the Company to credit risk, consist of cash, cash equivalents and accounts receivable. The Company’s policy is to limit the amount of credit exposure to any one financial institution. The Company places investments with financial institutions evaluated as being creditworthy, or investing in short-term money market funds which are exposed to minimal interest rate and credit risk. Cash balances are maintained with several banks. Certain operating accounts may exceed insured limits. The Company sells its products to customers involved in a variety of industries including information technology, medical devices and diagnostic systems, industrial controls and instrumentation and retail systems. While the Company does not require collateral from its customers, it does perform continuing credit evaluations of its customers’ financial condition.

LINE OF CREDIT and TERM NOTE

LINE OF CREDIT and TERM NOTE	6 Months Ended
	Jun. 30, 2019
LINE OF CREDIT and TERM NOTE [Abstract]
LINE OF CREDIT and TERM NOTE	4. LINE OF CREDIT and TERM NOTE Line of Credit and Term Loan with Western Alliance Bank On August 11, 2017, the Company entered into a Business Financing Agreement (the “Financing Agreement”) with Bridge Bank, a division of WAB, which included a revolving line of credit and a term loan. The agreement was to mature on September 1, 2019. The Financing Agreement with WAB, established a revolving credit line for the Company in the principal amount of up to $2,400,000 (the “Revolving Credit Line”) and a Term Loan of $400,000 (the “Term Loan”). Availability under the Revolving Credit Line is tied to a borrowing base formula that is based on 80% of the Company’s eligible domestic accounts receivable. Advances under the Revolving Credit Line (the “Advances”) may be repaid and reborrowed in accordance with the Loan Agreement. Pursuant to the Financing Agreement, the Company agreed to pay to WAB the outstanding principal amount of all Advances, the unpaid interest thereon, and all other obligations incurred with respect to the Loan Agreement on September 1, 2019. Interest accrues and is paid monthly at the Wall Street Journal Prime Rate plus 1.5%. At June 30, 2019, the interest rate was 7%. The original Term Loan provided proceeds of $400,000 to the Company. Beginning in August 2017, for the first six months of the term loan the Company was only required to pay interest. Then for the next 18 months, the Term Loan was to be amortized into monthly payments of principal and interest. The interest rate on the original Term Loan was the Wall Street Journal Prime Rate plus 1.75%. The Term Loan was modified in November 2017 by the , and as a result, the Company fully repaid the Term Loan by April 30, 2018. The Company repaid $150,000 of the Term Loan in December 2017, $125,000 in January 2018 and the balance of $125,000 in April 2018. On July 24, 2018, the Company entered into a Second Modification to Business Financing Agreement (“Loan Modification”) with WAB which amended the First Modification, dated November 22, 2017. The Loan Modification increased the credit limit under Company’s credit facility to $2,850,000, extended the maturity date of the credit facility through November 15, 2020 and revised and clarified certain covenants and other terms of the credit facility. No other terms or conditions were modified. The Company expects to be able to continue to comply with the required covenants contained in the agreement with WAB for at least the next year. As a result, the amounts due to WAB under the line of credit and term loan as of June 30, 2019 are classified in the accompanying condensed consolidated balance sheet in accordance with the repayment terms stipulated in the agreement. As of June 30, 2019 the Company owed $2,647,000 under the revolving line of credit. The Company incurred $44,000 and $64,000 of interest expense to WAB for the three month period ended June 30, 2019 and 2018. respectively and $98,000 and $99,000 of interest expense to WAB in the first six months of 2019 and 2018, resectively. As of June 30, 2019, there was availability of $203,000 under the line of credit. The Company was in compliance with the financial and liquidity covenants of the Loan Modification as of June 30, 2019. Subject to certain exceptions, the amended Financing Agreement contains covenants prohibiting the Company from, among other things: (a) conveying, selling, leasing, transferring or otherwise disposing of their properties or assets; (b) liquidating or dissolving; (c) engaging in any business other than the business currently engaged in or reasonably related thereto; (d) entering into any merger or consolidation, or acquiring all or substantially all of the capital stock or property of another entity; (e) becoming liable for any indebtedness; (f) allowing any lien or encumbrance on any of their property; and (g) paying any dividends (other than dividends on outstanding convertible preferred stock); and (i) making payment on subordinated debt. In addition, actual EBITDA, as defined in the Financing Agreement for the trailing 6-month period must be at least $1 as tested quarterly. The amended Financing Agreement is secured by a first priority perfected security interest in substantially all of the assets of the Company, excluding the intellectual property of the Company. The Loan Modification contains a negative covenant prohibiting the Company from granting a security interest in their intellectual property to any party.

LEASES

LEASES	6 Months Ended
	Jun. 30, 2019
LEASES [Abstract]
LEASES	5. LEASES The Company adopted the new lease standard on January 1, 2019 using the modified retrospective transition method. Prior periods were not retrospectively adjusted and continue to be reported under the accounting standards in effect for those periods. The Company elected the package of practical expedients permitted under the transition guidance within the new lease standard, which among other things, allowed the Company to continue to account for existing leases based on the historical lease classification. The Company also elected the practical expedients to combine lease and non-lease components for its office leases, which primarily relate to ancillary expenses such as common area maintenance charges and management fees. The Company determines if an arrangement is a lease at inception by assessing whether it conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The Company’s leases are primarily related to operating leases for its corporate office and subsidiaries, office equipment and cars. The Company's leases have remaining lease terms of less than 1 to 4 years, and sometimes include options to renew. Renewal and termination options are included in the lease term when it is reasonably certain that the Company will exercise the option. However, it has been the Company’s experience to renegotiate a lease and not renew based on the terms of the lease. ROU assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As all of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate plus some additional considerations for the term of the lease, based on the information available at the lease commencement date, to determine the present value of lease payments. Based on the present value of lease payments for the Company's existing leases, the Company recorded ROU assets and lease liabilities of approximately $3,132,000 upon adoption on January 1, 2019. There was one lease at one of our subsidiaries that was renewed for 2 years effective at January 1, 2019 that is included in the lease liability. The Company had no finance leases. The impact of the new lease standard on the June 30, 2019 condensed consolidated balance sheet was as follows: June 30, 2019 Right-of-use assets $ 2,567,000 Current lease liabilities $ 1,017,000 Noncurrent lease liabilities 1,550,000 Total lease liabilities $ 2,567,000 Weighted average remaining lease term 2.2 years Weighted average discount rate 7.17 % Total operating lease costs for the three and six months ended June 30, 2019 were $320,000 and $640,000, respectively, while the total operating lease costs for the three and six months ended June 30, 2018 were $326,000 and $652,000, respectively, which is included in operating costs on the condensed consolidate income statements. The following table provides supplemental cash flow information related to our operating leases at June 30, 2019: Six Months Ended June 30, 2019 Cash paid for amounts included in the measurement of operating lease liabilities $ 656,000 The following table shows the future maturities of lease liabilities for leases in effect as of June 30, 2019: Lease Liabilities 2019 (excluding the six months ended June 30, 2019) $ 640,000 2020 1,049,000 2021 837,000 2022 452,000 2023 1,000 Total lease payments 2,979,000 Less: imputed interest (412,000 ) Total $ 2,567,000

INCOME TAXES

INCOME TAXES	6 Months Ended
	Jun. 30, 2019
INCOME TAXES [Abstract]
INCOME TAXES	6. INCOME TAXES The Company has identified its federal tax return and its state returns in Pennsylvania and California as “major” tax jurisdictions. Based on the Company’s evaluation, it concluded that there are no significant uncertain tax positions requiring recognition in the Company’s financial statements. The Company’s evaluation was performed for tax years ended 2014 through 2018, the only periods subject to examination. The Company believes that its income tax positions and deductions will be sustained on a tax authority audit and does not anticipate any adjustments that will result in a material change to its financial position. The Company’s policy for recording interest and penalties associated with audits is to record such items as a component of income before income taxes. Penalties are recorded in general and administrative expenses and interest accrued is recorded in interest expense or interest income, respectively, in the condensed consolidated statement of operations. For the three and six months ended June 30, 2019 and 2018, there were no interest or penalties related to uncertain tax positions. Deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities and operating loss and tax credit carryforwards and are measured using the enacted tax rates and laws that will be in effect when the difference and carryforwards are expected to be recovered or settled. A valuation allowance for deferred tax assets is provided when we estimate that it is more likely than not that all or a portion of the deferred tax assets may not be realized through future operations. This assessment is based upon consideration of available positive and negative evidence which includes, among other things, our most recent results of operations and expected future profitability. We consider our actual historical results to have a stronger weight than other more subjective indicators when considering whether to establish or reduce a valuation allowance on deferred tax assets. As of June 30, 2019, we had approximately $10.9 million of net deferred tax assets, against which we provided a 100% valuation allowance. Our net deferred tax assets were generated primarily by operating losses. Accordingly, it is more likely than not, that we will not realize these assets through future operations.

EQUITY

EQUITY	6 Months Ended
	Jun. 30, 2019
EQUITY [Abstract]
EQUITY	7. EQUITY Share-Based Awards Compensation costs include share-based payments granted to employees and directors based on the estimated grant date fair value. The Company estimates the fair value of stock options granted using the Black-Scholes-Merton (“Black-Scholes”) option-pricing formula and amortizes the estimated option value using an accelerated amortization method where each option grant is split into tranches based on vesting periods. The Company’s expected term represents the period that the Company’s share-based awards are expected to be outstanding and was determined based on historical experience regarding similar awards, giving consideration to the contractual terms of the share-based awards and employee termination data. Executive level employees who hold a majority of options outstanding, and non-executive level employees each have similar historical option exercise and termination behavior and thus were grouped for valuation purposes. The Company’s expected volatility is based on the historical volatility of its traded common stock and places exclusive reliance on historical volatilities to estimate our stock volatility over the expected term of its awards. The Company has historically not paid dividends to common stockholders and has no foreseeable plans to issue dividends. The risk-free interest rate is based on the yield from the U.S. Treasury zero-coupon bonds with an equivalent term. As of June 30, 2019, the total unrecognized compensation cost related to non-vested options amounted to $527,000, which is expected to be recognized over the options’ weighted average remaining vesting period of 3.34 years. The Company has Stock Option Plans (the “Plans”) under which incentive and non-qualified stock options may be granted to its employees, officers, directors and others. Generally, incentive stock options are granted at fair value, become exercisable over a four-year period, have a 10-year contractual term and are subject to the employee’s continued employment. Non-qualified options are granted at exercise prices determined by the Board of Directors and vest over varying periods. Activity under the Company’s stock option plans for the six months ended June 30, 2019 is as follows: OPTIONS OUTSTANDING Shares Weighted Average Exercise Price Per Share Balance, December 31, 2018 762,000 $ 2.54 Granted 205,000 $ 5.86 Exercised (33,000 ) $ 1.83 Forfeited (60,000 ) $ 1.76 Balance, June 30, 2019 874,000 $ 3.20 There are 328,000 shares available for granting future options as of June 30, 2019. It is the Company’s policy to issue shares from authorized but unissued common stock when stock options are exercised. The following table summarizes outstanding options under the Company’s stock option plans as of June 30, 2019: Number of Shares Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Outstanding Options 874,000 $ 3.20 6.03 $ 2,552,000 Ending Vested and Exercisable 540,000 $ 2.44 4.28 $ 1,838,000 Options Vested and Expected to Vest 757,000 $ 3.03 5.62 $ 2,154,000 Convertible Preferred Stock Series A On September 24, 2008, the Company issued 826,000 shares of Series-A Convertible Preferred Stock (“Series A Preferred Stock”) to its Chief Executive Officer at a price of $3.63 per share for a total of $3,000,000. Dividends accrue daily on the Series A Preferred at a rate of 10% and are payable only when, and if, declared by the Company’s Board of Directors, quarterly in arrears. At June 30, 2019, there were accrued dividends of $579,000. The Series A Preferred Stock may be converted into common stock at the rate of one share of common for each share of Series A Preferred Stock. The Company has rights to cause conversion of all of the shares of Series A Preferred Stock outstanding. The Company may redeem, subject to board approval, all of the shares of Series A Preferred Stock then outstanding at a price equal to the greater of (i) 130% of the purchase price plus all accrued and unpaid dividends and (ii) the fair market value of such number of shares of common stock which the holder of the Series A Preferred Stock would be entitled to receive had the redeemed Series A Preferred Stock been converted immediately prior to the redemption. Each and every outstanding share of Series A Preferred Stock is subject to mandatory and automatic conversion into shares of common stock if the closing price of the common stock as reported by the principal exchange or quotation system on which such common stock is traded or reported exceeds 300% of the then current conversion price for 30 consecutive trading days. In the event of a liquidation of the Company, the holder of the Series A and Series B preferred stock shall be entitled to receive in preference to the holders of the common stock, the original amount invested in the preferred stock plus any unpaid and accrued dividends. Preferred stock dividends on the Series A are declared quarterly by the Board of Directors. The Company reports the Series A Preferred Stock on the Company’s condensed consolidated balance sheet within stockholders’ deficit. Series On June 20, 2014, the Company issued 797,000 of Series-B Convertible Preferred Stock (“Series B Preferred Stock”) to its Chief Executive Officer at a price of $2.51 per share in exchange for the cancellation of $2,000,000 of outstanding principal owed to its Chief Executive Officer under a Revolving Promissory Note dated March 26, 2014. The Series B Preferred Stock may be converted into shares of common stock on a one-to-one ratio, subject to customary anti-dilution provisions. The Series B Preferred Stock is entitled to a quarterly dividend, which accrues at an annual rate of 10%. The Company’s Chief Executive Officer may convert 100% of his shares of the Series B Preferred Stock into shares of common stock. Each and every outstanding share of Series B Preferred Stock is subject to mandatory and automatic conversion into shares of common stock if the closing price of the common stock as reported by the principal exchange or quotation system on which such common stock is traded or reported exceeds 300% of the then current conversion price for 30 consecutive trading days. The Company may redeem all of the outstanding shares of the Series B Preferred Stock issued at a price per share equal to 300% of the purchase price. The Series B Preferred Stock ranks senior to the common stock and on parity with the Company’s Series A Preferred Stock. In the event of a liquidation of the Company, the holder of the Series B and Series A Preferred Stock shall be entitled to receive in preference to the holders of the common stock, the original amount invested in the preferred stock plus any unpaid and accrued dividends. Preferred stock dividends on the Series B are declared quarterly by the Board of Directors. At June 30, 2019, there were accrued dividends of $366,000. The Company reports the Series B Preferred Stock on the Company’s condensed consolidated balance sheet within stockholders’ deficit.

(LOSS) EARNINGS PER SHARE

(LOSS) EARNINGS PER SHARE	6 Months Ended
	Jun. 30, 2019
(LOSS) EARNINGS PER SHARE [Abstract]
(LOSS) EARNINGS PER SHARE	8. (LOSS) EARNINGS PER SHARE (Loss) earnings per share is computed on the basis of the weighted average number of shares and common stock equivalents outstanding during the period. In the calculation of diluted earnings per share, shares outstanding are adjusted to assume conversion of the Company’s non-interest bearing convertible stock and exercise of options as if they were dilutive. In the calculation of basic (loss) earnings e per share, weighted average numbers of shares outstanding are used as the denominator. The Company had net loss allowable to the common stockholders for the three and six months ended June 30, 2019 and net income available to stockholders for the three and six months ended June 30, 2018. In the three and six months ended June 30, 2018, there were 179,000 of net additional dilutive stock options assumed to be converted into common stock shares and in the three and six months ended June 30, 2019, the outstanding stock options would have been antidilutive due to the net loss incurred during those periods. In addition, 100% of the outstanding convertible preferred stock, 1,623,000 shares, were eligible to be converted into common stock. For purpose of this calculation, if converted, it was assumed that upon conversion, the related dividends were not paid. However, as of the three and six months ended June 30, 2019 and 2018 shares of common stock issuable on the assumed conversion of the eligible preferred stock were excluded from the diluted earnings per common shares calculation as the inclusion of these shares would have been antidilutive. Three Months Ended Ended June 30 Six Months Ended Ended June 30, 2019 2018 2019 2018 Numerator: Net (loss) income $ (586,000 ) $ 304,000 $ (531,000 ) $ 310,000 Preferred dividend 125,000 125,000 250,000 250,000 Net (loss) income available to common stockholders $ (711,000 ) $ 179,000 $ (781,000 ) $ 60,000 Denominator: Basic weighted average number of common shares outstanding 3,617,000 3,594,000 3,617,000 3,594,000 Effect of dilutive stock options - 179,000 - 179,000 Diluted weighted average number of common shares outstanding 3,617,000 3,773,000 3,617,000 3,773,000 Basic earnings per common share $ (0.20 ) $ 0.05 $ (0.22 ) $ 0.02 Diluted earnings per common share $ (0.20 ) $ 0.05 $ (0.22 ) $ 0.02

GEOGRAPHIC REGION DATA

GEOGRAPHIC REGION DATA	6 Months Ended
	Jun. 30, 2019
GEOGRAPHIC REGION DATA [Abstract]
GEOGRAPHIC REGION DATA	9. GEOGRAPHIC REGION DATA The Company and its subsidiaries are engaged in the design, development, marketing and support of its service management software solutions. Substantially all revenues result from the license of the Company’s software products and related professional services and customer support services. The Company’s chief executive officer reviews financial information presented on a consolidated basis, accompanied by disaggregated information about revenues by geographic region for purposes of making operating decisions and assessing financial performance. Accordingly, the Company considers itself to have three geographic segments as follows: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Revenues Software license fees United States $ 227,000 $ 123,000 $ 596,000 $ 448,000 Europe 55,000 103,000 107,000 152,000 Asia Pacific 180,000 666,000 459,000 711,000 Total foreign software license fees revenue 235,000 769,000 566,000 863,000 Total software license fees 462,000 892,000 1,162,000 1,311,000 Subscriptions United States 678,000 409,000 1,357,000 824,000 Europe 266,000 315,000 542,000 587,000 Asia Pacific 289,000 140,000 560,000 281,000 Total foreign subscriptions 555,000 455,000 1,102,000 868,000 Total subscription revenue 1,233,000 864,000 2,459,000 1,692,000 Services and maintenance United States 3,009,000 3,048,000 5,998,000 6,383,000 Europe 605,000 594,000 1,235,000 1,184,000 Asia Pacific 1,106,000 1,234,000 2,181,000 2,758,000 Total foreign services and maintenance revenue 1,711,000 1,828,000 3,417,000 3,942,000 Total services and maintenance revenue 4,720,000 4,876,000 9,414,000 10,325,000 Total revenue $ 6,415,000 $ 6,632,000 $ 13,035,000 $ 13,328,000 Net (loss) income United States $ (282,000 ) $ 170,000 $ (71,000 ) $ 109,000 Europe (316,000 ) (159,000 ) (516,000 ) (215,000 ) Asia Pacific 12,000 293,000 56,000 416,000 Net (loss) income $ (586,000 ) $ 304,000 $ (531,000 ) $ 310,000

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	6 Months Ended
	Jun. 30, 2019
BASIS OF PRESENTATION [Abstract]
Basis of Presentation	The condensed consolidated financial statements at June 30, 2019 and for the six month periods ended June 30, 2019 and 2018 of Astea International Inc. and subsidiaries (“Astea” or the "Company") are unaudited and reflect all adjustments (consisting only of normal recurring adjustments) which are, in the opinion of management, necessary for a fair presentation of the financial position and operating results for the interim periods. The accompanying unaudited financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and note disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles have been omitted pursuant to the rules and regulations of the SEC for quarterly reports on Form 10-Q. It is suggested that these financial statements be read in conjunction with the financial statements and the notes thereto, included in the Company’s latest annual report (Form 10-K) and our Form 10-Q’s for the quarters ended June 30, 2018, September 30, 2018 and March 31, 2019. The interim financial information presented is not necessarily indicative of results expected for the entire year ending December 31, 2019.
Comparability	Comparability The condensed consolidated financial statements for the period ended June 30, 2019 are presented under the new Lease standard, while the comparative period presented has not been adjusted and continues to be reported in accordance with the previous standard. The Lease standard requires lessees to recognize a right-of-use ("ROU") asset and lease liability for all leases on the condensed consolidated balance sheet beginning January 1, 2019 with no modification to prior periods.
Recently Adopted Accounting Standards- Leases	Recently Adopted Accounting Standards- Leases In February 2016, the FASB issued guidance for accounting for leases. The guidance requires lessees to recognize assets and liabilities related to long-term leases on the balance sheet and expands disclosure requirements regarding leasing arrangements. The guidance was effective for the Company on January 1, 2019. The guidance was adopted on a modified retrospective basis and provides for certain practical expedients. The adoption of this guidance changed the way we account for our operating leases, which resulted in the Company recording the future benefits of those leases as an asset and the related minimum lease payments as a liability on our condensed consolidated balance sheets. The Company does not finance purchases of equipment, but it does have operating leases for office space and equipment in all locations. The Company has identified all material operating lease agreements. It has also reviewed all significant contracts for embedded leases. No embedded leases were identified during this process. We determine if an arrangement is a lease at inception. All leases to which the Company is a party are operating leases. Beginning January 1, 2019, the operating leases are being reported on our condensed consolidated balance sheet as operating lease ROU assets and current and noncurrent operating lease liabilities. The ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities will be recognized at the commencement date based on the present value of the lease payments over the lease term. As none of our leases provide an implicit interest rate, we used our incremental borrowing rate based on the information available at the commencement date in calculating the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise the option. The new guidance provides a number of optional practical expedients in transition. The Company elected the package of practical expedients which permitted us under the new guidance not to reassess our prior conclusions about lease identification, lease classification and initial direct costs. Astea did not elect the use-of hindsight or the practical expedient pertaining to land easements; the latter not being applicable to us. On adoption, we recognized operating liabilities of $3,132,000, with corresponding ROU assets of the same amount based on the present value of the remaining minimum rental payments under current leasing standards for existing operating leases. The new guidance also provides practical expedients for an entity’s ongoing accounting. We elected the short-term lease recognition exemption for one of our office equipment leases. This means, for those leases that qualify, we will not recognize ROU assets or lease liabilities. This includes not recognizing ROU assets or lease liabilities for existing short-term leases on those assets in transition. We elected the practical expedient to not separate lease and non-lease components for all of our leases. As expected, the adoption of this guidance resulted in additional lease-related disclosures in the footnotes to our condensed consolidated financial statements (see Note 5).
Cash, Cash Equivalents and Restricted Cash	Cash, cash equivalents and restricted cash The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheet that sum to the total of the same such amounts presented on the condensed consolidated statement of cash flows: June 30, 2019 December 31, 2018 Cash and cash equivalents $ 1,839,000 $ 1,276,000 Restricted cash 72,000 72,000 Total cash, cash equivalents, and restricted cash reported on the condensed consolidated statements of cash flows $ 1,911,000 $ 1,348,000 Amounts included in restricted cash represent funds required to be set aside by a contractual agreement with the building leasing companies in Europe. The restrictions will lapse when the building leases expire.
Operating Matters and Liquidity	Operating Matters and Liquidity The Company has a history of net losses and an accumulated deficit of $34,875,000 as of June 30, 2019. In the first six months of 2019, the Company had a net loss of $531,000 compared to income of $310,000 generated in the first six months of 2018. Further, at June 30, 2019, the Company had a working capital ratio of .57:1, with cash and cash equivalents of $1,839,000 compared to December 31, 2018 when the Company had cash and cash equivalents of $1,276,000. The increase in cash and cash equivalents for the first six months 2019 was primarily driven by an increase in cash provided by operations in 2019 compared to 2018 and a decrease in capitalized software development costs, partially offset by an increase in the dividend payment. As of June 30, 2019, the Company owed $2,647,000 against the line of credit from . As of June 30, 2019, the availability under the line of credit was $203,000. The Company has projected revenues that management believes will provide sufficient funds along with the additional borrowings available under its line of credit to sustain its continuing operations through at least August 15, 2020. The Second Loan Agreement increased the availability under the line of credit from $2,400,000 to $2,850,000 (see Note 4). The Company was in compliance with the WAB financial and liquidity covenant as of June 30, 2019 and expects to be able to continue to comply with the required covenants under the modified agreement with WAB for at least the next year. As a result, the amount due to WAB under the line of credit as of June 30, 2019 were classified in the accompanying condensed consolidated balance sheet in accordance with the repayment terms stipulated in the agreement with WAB. Our primary cash requirements are to fund operations However, projections of future cash needs and cash flows are subject to risks and uncertainty. Management’s current operating plan is to maintain and/or reduce operating expenses in order to be aligned with expected revenues. The primary area of focus will continue to be headcount and costs from outside consultants. The Company remains focused on maximizing revenue from its revenue generating resources and will continue to repurpose, if necessary, certain personnel to become billable so the Company can continue to improve its liquidity. The Company has a substantial professional services backlog that resulted from new customers added in 2018 as well as upgrade projects from our existing customers as they move to the latest version of Astea Alliance. In 2019, the Company will continue to consider ways to reduce operating expenses in certain areas of the Company in order to maintain its liquidity. However, management has implemented new marketing initiatives which have increased our spending in this area in 2019. We believe the new initiatives will directly contribute to increasing new business, which is essential to our growth. Operations will generate enough cash to meet obligations at least through August 15, 2020. As noted above, if the Company’s actual results fall short of expectations, the Company will make cost adjustments to improve the Company’s operating cash flows. Our operations are subject to certain risks and uncertainties including, among others, current and potential competitors with greater resources, dependence on our significant and existing customer base, closing license and subscription sales in a timely manner, lack of a history of consistently generating net income and uncertainty of future profitability, and possible fluctuations in financial results.
Revenue from Contracts with Customers	Revenue from Contracts with Customers Astea’s revenue is principally recognized from three sources: (i) licensing arrangements, (ii) subscription services and (iii) services and maintenance. The Company markets its products primarily through its direct sales force and resellers. License agreements do not provide for a right of return, and historically, product returns have not been significant. Revenue from Contracts with Customers 1. Identify the contract with a customer. 2. Identify the performance obligations in the contract. 3. Determine the transaction price. 4. Allocate the transaction price to performance obligations in the contract. 5. Recognize revenue when or as the Company satisfies a performance obligation. The Company satisfies performance obligations as discussed in further detail below. Revenue is recognized at the time the related performance obligation is satisfied by transferring a promised good or service to a customer. The Company recognizes revenue from license sales when the above criteria are met. The Company generally uses written contracts as a means to establish the terms and conditions by which our products, services and maintenance support are sold to our customers. The Company satisfies the performance obligation when the license key has been delivered electronically to the customer. If these criteria are not met, then revenue is deferred until such criteria are met or until the period(s) over which the last performance obligation is delivered. The Company recognizes revenues from maintenance ratably over the term of the underlying maintenance contract term. The term of the maintenance contract is usually one year. Renewals of maintenance contracts create new performance obligations that are satisfied over the contract term. Revenues from professional services mostly consist of time and material services. Certain professional service contracts are performed on a fixed price basis and revenue is recognized using the percentage of completion method. However, fixed price contracts are only utilized on rare occasions. Performance obligations are satisfied, and revenues are recognized, when the services are provided or when the service term has expired. In subscription based arrangements, even though customers use the software element, they generally do not have a contractual right to take possession of the software at any time during the hosting period without significant penalty to either run the software on its own hardware or contract with an unrelated third party to host the software. Accordingly, these software as a service (“SaaS”) arrangements, including the software license fees within the arrangements, are accounted for as subscription services provided all other revenue recognition criteria have been met. The subscription revenue is recognized on a straight-line basis over the performance obligation. The Company recognizes subscription revenue once a customer goes-live ratably over the remaining contract period or customer life whichever is longer. The contract period is typically 1 to 3 years. The average expected life of a customer is 2 years. The average customer takes about 8 to 10 months to go live. The Company expects the average life of a customer to increase as more customers begin to renew their subscription contracts. When implementation, consulting and training services are bundled with the subscription based arrangement, these services are recognized over the life of the initial contract (performance obligation), once the project goes live. In contracts with multiple performance obligations, the Company accounts for individual performance obligations separately, if they are distinct. The Company allocates the transaction price to each performance obligation based on its relative standalone selling price out of total consideration of the contract. For maintenance and support, the Company determines the standalone selling price based on the price at which the Company separately sells a renewal contract. The Company determines the standalone selling price for sales of licenses using the residual approach. For professional services, the Company determines the standalone selling prices based on the price at which the Company separately sells those services. The guidance prefers that revenue in a contract with multiple performance obligations use the adjusted market approach which includes SSP or TPE or expected cost plus margin approach as the methodology for allocating revenues to software. The Company uses the Residual Approach for allocating the revenues from a contract to the license component of the sale. Due to competition, highly variable pricing, customer demographics, varying size of our customers, and other such factors, the Company’s selling prices are considered uncertain for each perpetual license sale. Therefore, SSP is not an appropriate methodology as it relates to our license revenue. In terms of TPE as a basis to price our software, our product is unique and expansive in terms of the system’s inherent functionality. There are no directly comparable products in the marketplace today which we could use as the basis to set our standard license pricing based on a comparison with other vendors. In addition, most of the companies with whom we compete, are privately owned, which prevents us from obtaining reliable TPE. Accordingly, the guidance permits the Company to use the Residual Method for allocating selling price if the first two preferable choices cannot be used. The residual between the total transaction price and the observable standalone selling prices of those performance obligations with observable standalone selling prices is considered to be the estimated standalone selling price of the goods or services underlying the performance obligation. Astea commonly sells its software products bundled with maintenance and professional services. As noted above, the guidance requires an entity to allocate the transaction price to the distinct performance obligations in a contract on a relative SSP basis. Under the guidance, “…an entity shall determine the standalone selling price at contract inception of the distinct good or service underlying each performance obligation in the contract and allocate the transaction price in proportion to those standalone selling prices.” SSP is defined as the price at which an entity would sell a promised good or service separately to a customer. Astea has a history of selling maintenance renewals and professional services on a standalone basis. Therefore, the Company utilizes SSP for its performance obligations as it relates to service and maintenance revenue. In addition, due to the Company having different maintenance and service rates in other parts of the world in which it operates, the Company has developed a reasonable range for its SSP for maintenance and services rather than a single point. The incremental costs of obtaining a customer contract (i.e., those costs related to obtaining the customer contract that would not have been incurred if the customer contract was not obtained), such as a sales commission, should be capitalized if the Company expects to recover those costs (based on net future cash flows from the contract and expected contract renewals). The Company may expense the incremental costs of obtaining a contract if the amortization period would otherwise be one year or less. Since sales commissions are costs that are incremental and the amortization of sales commissions would be one year or less, the Company will continue to expense these items as incurred. Costs of obtaining a customer contract that are not incremental (i.e., costs related to obtaining the customer contract that would have been incurred regardless of whether the customer contract had been obtained), such as travel costs incurred to present the customer proposal, should only be capitalized if those costs are explicitly chargeable to the customer regardless of whether the entity enters into a contract with the customer. Otherwise, such costs are expensed as incurred. The Company will continue to expense these costs as they are incurred. Once live, we recognize the deferred implementation costs related to that customer ratably over the remaining expected life of the customer contract or two years, whichever is longer. At this point, based on the Company’s relatively short time-span as a provider of a hosted solution, our analysis shows that the average lifespan of an Astea hosted customer is 2 years. Therefore, we amortize the deferred cost over 2 years or the remaining life of the contract, whichever is longer. This is consistent with the revenue recognition methodology used for the subscription service revenue for that customer. The Company satisfies performance obligations as discussed in further detail below. Revenue is recognized at the time the related performance obligation is satisfied by transferring a promised service to a customer. We believe that our accounting estimates used in applying our revenue recognition are critical because: • the determination that it is probable that the customer will pay for the products and services purchased is inherently judgmental and includes credit risk; • determining the performance obligations and transaction price to certain elements in multiple-element arrangements is complex; • the determination of whether a service is essential to the functionality of the software is complex and could potentially create a new performance obligation; and • the estimated customer life of subscription services. Changes in the aforementioned items could have a material effect on the type and timing of revenue recognized. In addition, Company’s payment terms and conditions vary by contract and size of customer, although terms generally include a requirement of payment within 30 to 60 days. In instances where the timing of revenue recognition differs from the timing of invoicing, the Company has determined that its contracts generally do not include a significant financing component. The primary purpose of invoicing terms is to provide customers with simplified and predictable ways of purchasing our products and services, and not to facilitate financing arrangements. The Company generally has not experienced any material losses related to receivables from individual customers, or groups of customers. Due to these factors, no additional credit risk beyond amounts provided by the allowance for doubtful accounts is believed by management to be probable in the Company’s accounts receivable. The Company has not adjusted revenues for customers related to credit risk. At June 30, 2019, there was one customer that accounted for 26% of total net accounts receivable. At December 31, 2018, no single customer accounted for 10% or more of net accounts receivable. For the three months ended June 30, 2019, there was one customer that accounted for 10% of total revenue. For the six months ended June 30, 2019 and the three and six months ends June 30, 2018, no individual customer accounted for 10% or more of total revenue. We present taxes assessed by a governmental authority including sales, use, value added and excise taxes on a net basis and therefore the presentation of these taxes is excluded from our revenues and is included in accrued expenses in the accompanying condensed consolidated balance sheets until such amounts are remitted to the taxing authority. The Company is engaged in the design, development, marketing and support of its service management software solutions. All revenues result from selling of license (perpetual and subscription) software products and related professional services and customer support services. Accordingly, the Company considers itself to have one reporting segment. The Company’s chief decision maker further reviews financial information presented on a consolidated basis to determine if revenue can be further disaggregated in order to make operating decisions and assessing financial performance. It was determined that all revenue recognized in our consolidated statements of operations is considered to be revenue from contracts with customers, which can be disaggregated by both the timing of revenue recognition and geographic regions (see Note 9 of the condensed consolidated financial statements for disaggregated revenues by geographic regions). The following tables depicts the Company’s disaggregation of revenue: Three months ended June 30 Six months ended June 30, Timing of Revenue Recognition 2019 2018 2019 2018 Performance obligations transferred at a point in time $ 462,000 $ 892,000 $ 1,162,000 $ 1,311,000 Performance obligations transferred over time 4,405,000 4,698,000 8,886,000 9,937,000 Performance obligations transferred over time initiated at go-live 1,548,000 1,042,000 2,987,000 2,080,000 Total revenues $ 6,415,000 $ 6,632,000 $ 13,035,000 $ 13,328,000 The performance obligations transferred at a point in time relate to perpetual license revenue for which there is no deferred revenue as of June 30, 2019 or 2018. The performance obligations transferred over time consist of professional services that are recognized based on time and materials, as the services are performed. The performance obligations for support services are recognized ratably over time based on the contract life, except for a few fixed price contracts which are recognized based on the achievement of certain milestones. If the customer pays in advance, service revenue is deferred until the performance obligations are met. For support services, the fee is paid in advance of the performance obligation. Accordingly, the Company has recorded deferred revenue from fixed price contracts and support services of $7,287,000 and $6,744,000 as of June 30, 2019 and 2018, respectively. Performance obligations transferred over time, initiated at go-live, relate to our subscription hosting and our subscription professional services for the implementation. No performance obligation is recognized until the customer is live and has access to the subscription services. Once live, the performance obligations are recognized over time, which is either 2 years, the average customer life, or the remaining contract life of the customer, whichever is longer. Because subscription fees are paid in advance, and professional services fees are paid as the services are performed, the revenue from both are deferred until the date in which the customer goes live. The Company has deferred revenue recorded for performance obligations transferred over time, initiated at go-live for hosting and hosting services for $4,585,000 and $4,766,000 as of June 30, 2019 and 2018, respectively. The long term deferred revenue reported as $1,259,000 and $1,711,000 as of June 30, 2019 and 2018, respectively, consists of the portion of revenue that will be recognized beyond one year of the balance sheet date for hosting implementation services.

NEW ACCOUNTING PRONOUNCEMENTS_2

NEW ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED (Policies)	6 Months Ended
	Jun. 30, 2019
NEW ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED [Abstract]
NEW ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED	In August 2018, the FASB issued guidance that requires a customer in a cloud computing arrangement (i.e. hosting arrangement) that is a service contract to follow the internal-use software guidance to determine which implementation costs to capitalize as assets or expense as incurred. This guidance requires that certain costs incurred during the application development stage be capitalized and other costs incurred during the preliminary project and post-implementation stages be expensed as incurred. The guidance is effective for annual periods beginning after December 15, 2019 with early adoption permitted. The adoption of this guidance is not expected to have a material impact on our condensed consolidated financial statements. In August 2018, the FASB issued guidance modifying the disclosure requirements on fair value measurements. The amendments add, modify, and eliminate certain disclosure requirements on fair value measurements. The guidance is effective for reporting periods beginning after December 15, 2019, including interim periods within that fiscal year. Early adoption is permitted, including adoption in an interim period. We are currently evaluating the impact, if any, that the adoption of this guidance will have on our condensed consolidated financial statements. In June 2016, the FASB issued an accounting standard update that requires measurement and recognition of expected credit losses for financial assets held based on historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The accounting standard update will be effective for us beginning January 1, 2020. We expect to adopt this accounting standard update on a modified retrospective basis and we are currently evaluating the impact of this accounting standard update on our condensed consolidated financial statements

CONCENTRATION OF CREDIT RISK (P

CONCENTRATION OF CREDIT RISK (Policies)	6 Months Ended
	Jun. 30, 2019
CONCENTRATION OF CREDIT RISK [Abstract]
CONCENTRATION OF CREDIT RISK	Financial instruments, which potentially subject the Company to credit risk, consist of cash, cash equivalents and accounts receivable. The Company’s policy is to limit the amount of credit exposure to any one financial institution. The Company places investments with financial institutions evaluated as being creditworthy, or investing in short-term money market funds which are exposed to minimal interest rate and credit risk. Cash balances are maintained with several banks. Certain operating accounts may exceed insured limits. The Company sells its products to customers involved in a variety of industries including information technology, medical devices and diagnostic systems, industrial controls and instrumentation and retail systems. While the Company does not require collateral from its customers, it does perform continuing credit evaluations of its customers’ financial condition.

BASIS OF PRESENTATION (Tables)

BASIS OF PRESENTATION (Tables)	6 Months Ended
	Jun. 30, 2019
BASIS OF PRESENTATION [Abstract]
Reconciliation of Cash, Cash Equivalents and Restricted Cash	The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheet that sum to the total of the same such amounts presented on the condensed consolidated statement of cash flows: June 30, 2019 December 31, 2018 Cash and cash equivalents $ 1,839,000 $ 1,276,000 Restricted cash 72,000 72,000 Total cash, cash equivalents, and restricted cash reported on the condensed consolidated statements of cash flows $ 1,911,000 $ 1,348,000
Disaggregation of Revenue	The following tables depicts the Company’s disaggregation of revenue: Three months ended June 30 Six months ended June 30, Timing of Revenue Recognition 2019 2018 2019 2018 Performance obligations transferred at a point in time $ 462,000 $ 892,000 $ 1,162,000 $ 1,311,000 Performance obligations transferred over time 4,405,000 4,698,000 8,886,000 9,937,000 Performance obligations transferred over time initiated at go-live 1,548,000 1,042,000 2,987,000 2,080,000 Total revenues $ 6,415,000 $ 6,632,000 $ 13,035,000 $ 13,328,000

LEASES (Tables)

LEASES (Tables)	6 Months Ended
	Jun. 30, 2019
LEASES [Abstract]
Impact of New Lease Standard on Condensed Consolidated Balance Sheet	The impact of the new lease standard on the June 30, 2019 condensed consolidated balance sheet was as follows: June 30, 2019 Right-of-use assets $ 2,567,000 Current lease liabilities $ 1,017,000 Noncurrent lease liabilities 1,550,000 Total lease liabilities $ 2,567,000 Weighted average remaining lease term 2.2 years Weighted average discount rate 7.17 %
Supplemental Cash Flow Information Related to Operating Leases	The following table provides supplemental cash flow information related to our operating leases at June 30, 2019: Six Months Ended June 30, 2019 Cash paid for amounts included in the measurement of operating lease liabilities $ 656,000
Future Maturities of Lease Liabilities	The following table shows the future maturities of lease liabilities for leases in effect as of June 30, 2019: Lease Liabilities 2019 (excluding the six months ended June 30, 2019) $ 640,000 2020 1,049,000 2021 837,000 2022 452,000 2023 1,000 Total lease payments 2,979,000 Less: imputed interest (412,000 ) Total $ 2,567,000

EQUITY (Tables)

EQUITY (Tables)	6 Months Ended
	Jun. 30, 2019
EQUITY [Abstract]
Activity of Stock Options	Activity under the Company’s stock option plans for the six months ended June 30, 2019 is as follows: OPTIONS OUTSTANDING Shares Weighted Average Exercise Price Per Share Balance, December 31, 2018 762,000 $ 2.54 Granted 205,000 $ 5.86 Exercised (33,000 ) $ 1.83 Forfeited (60,000 ) $ 1.76 Balance, June 30, 2019 874,000 $ 3.20
Outstanding Options Under Stock Options Plans	The following table summarizes outstanding options under the Company’s stock option plans as of June 30, 2019: Number of Shares Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Outstanding Options 874,000 $ 3.20 6.03 $ 2,552,000 Ending Vested and Exercisable 540,000 $ 2.44 4.28 $ 1,838,000 Options Vested and Expected to Vest 757,000 $ 3.03 5.62 $ 2,154,000

(LOSS) EARNINGS PER SHARE (Tabl

(LOSS) EARNINGS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2019
(LOSS) EARNINGS PER SHARE [Abstract]
Calculation of Earnings Per Share	However, as of the three and six months ended June 30, 2019 and 2018 shares of common stock issuable on the assumed conversion of the eligible preferred stock were excluded from the diluted earnings per common shares calculation as the inclusion of these shares would have been antidilutive. Three Months Ended Ended June 30 Six Months Ended Ended June 30, 2019 2018 2019 2018 Numerator: Net (loss) income $ (586,000 ) $ 304,000 $ (531,000 ) $ 310,000 Preferred dividend 125,000 125,000 250,000 250,000 Net (loss) income available to common stockholders $ (711,000 ) $ 179,000 $ (781,000 ) $ 60,000 Denominator: Basic weighted average number of common shares outstanding 3,617,000 3,594,000 3,617,000 3,594,000 Effect of dilutive stock options - 179,000 - 179,000 Diluted weighted average number of common shares outstanding 3,617,000 3,773,000 3,617,000 3,773,000 Basic earnings per common share $ (0.20 ) $ 0.05 $ (0.22 ) $ 0.02 Diluted earnings per common share $ (0.20 ) $ 0.05 $ (0.22 ) $ 0.02

GEOGRAPHIC REGION DATA (Tables)

GEOGRAPHIC REGION DATA (Tables)	6 Months Ended
	Jun. 30, 2019
GEOGRAPHIC REGION DATA [Abstract]
Disaggregated Information about Revenues by Geographic Segments	Accordingly, the Company considers itself to have three geographic segments as follows: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Revenues Software license fees United States $ 227,000 $ 123,000 $ 596,000 $ 448,000 Europe 55,000 103,000 107,000 152,000 Asia Pacific 180,000 666,000 459,000 711,000 Total foreign software license fees revenue 235,000 769,000 566,000 863,000 Total software license fees 462,000 892,000 1,162,000 1,311,000 Subscriptions United States 678,000 409,000 1,357,000 824,000 Europe 266,000 315,000 542,000 587,000 Asia Pacific 289,000 140,000 560,000 281,000 Total foreign subscriptions 555,000 455,000 1,102,000 868,000 Total subscription revenue 1,233,000 864,000 2,459,000 1,692,000 Services and maintenance United States 3,009,000 3,048,000 5,998,000 6,383,000 Europe 605,000 594,000 1,235,000 1,184,000 Asia Pacific 1,106,000 1,234,000 2,181,000 2,758,000 Total foreign services and maintenance revenue 1,711,000 1,828,000 3,417,000 3,942,000 Total services and maintenance revenue 4,720,000 4,876,000 9,414,000 10,325,000 Total revenue $ 6,415,000 $ 6,632,000 $ 13,035,000 $ 13,328,000 Net (loss) income United States $ (282,000 ) $ 170,000 $ (71,000 ) $ 109,000 Europe (316,000 ) (159,000 ) (516,000 ) (215,000 ) Asia Pacific 12,000 293,000 56,000 416,000 Net (loss) income $ (586,000 ) $ 304,000 $ (531,000 ) $ 310,000

BASIS OF PRESENTATION (Details)

BASIS OF PRESENTATION (Details)	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2019USD ($)Customer	Mar. 31, 2019USD ($)	Jun. 30, 2018USD ($)Customer	Mar. 31, 2018USD ($)	Jun. 30, 2019USD ($)SourceCustomerSegment	Jun. 30, 2018USD ($)Customer	Dec. 31, 2018USD ($)Customer		Jul. 24, 2018USD ($)	Dec. 31, 2017USD ($)	Aug. 11, 2017USD ($)
Recently Adopted Accounting Standards - Leases [Abstract]
Operating liabilities	$ 2,567,000				$ 2,567,000
ROU assets	2,567,000				2,567,000		$ 0	[1]
Cash, cash equivalents and restricted cash [Abstract]
Cash and cash equivalents	1,839,000				1,839,000		1,276,000	[1]
Restricted cash	72,000				72,000		72,000	[1]
Total cash, cash equivalents, and restricted cash reported on the condensed consolidated statements of cash flows	1,911,000		$ 1,441,000		1,911,000	$ 1,441,000	1,348,000			$ 2,001,000
Operating Matters and Liquidity [Abstract]
Accumulated deficit	(34,875,000)				(34,875,000)		(34,344,000)	[1]
Net (loss) income	$ (586,000)	$ 55,000	304,000	$ 6,000	$ (531,000)	310,000
Working capital ratio	0.57				0.57
Line of Credit Facility [Abstract]
Line of credit owed	$ 2,647,000				$ 2,647,000		2,669,000	[1]
Revenue, Performance Obligation [Abstract]
Number of sources for generating revenue | Source					3
Term of maintenance contract					1 year
Average expected life of a customer					2 years
Amortization period of deferred implementation costs					2 years
Average lifespan of a company hosted customer					2 years
Number of reporting segment | Segment					1
Timing of Revenue Recognition [Abstract]
Total revenues	6,415,000		6,632,000		$ 13,035,000	13,328,000
Long term deferred revenue	1,259,000		1,711,000		1,259,000	1,711,000	$ 763,000	[1]
Fixed Price Contracts and Support Services [Member]
Timing of Revenue Recognition [Abstract]
Deferred revenue	$ 7,287,000		$ 6,744,000		$ 7,287,000	$ 6,744,000
Customer Concentration Risk [Member] | Accounts Receivable [Member]
Revenue, Performance Obligation [Abstract]
Number of significant customers | Customer					1		0
Concentration risk percentage					26.00%
Customer Concentration Risk [Member] | Revenue [Member]
Revenue, Performance Obligation [Abstract]
Number of significant customers | Customer	1		0		0	0
Business Financing Agreement [Member] | Revolving Credit Line [Member]
Line of Credit Facility [Abstract]
Maximum availability under line of credit											$ 2,400,000
Second Modification Business Financing Agreement [Member] | Revolving Credit Line [Member]
Line of Credit Facility [Abstract]
Line of credit owed	$ 2,647,000				$ 2,647,000
Line of credit available	203,000				203,000
Maximum availability under line of credit									$ 2,850,000
Performance Obligations Transferred at Point in Time [Member]
Timing of Revenue Recognition [Abstract]
Total revenues	462,000		$ 892,000		1,162,000	$ 1,311,000
Deferred revenue	0		0		0	0
Performance Obligations Transferred Over Time [Member]
Timing of Revenue Recognition [Abstract]
Total revenues	4,405,000		4,698,000		8,886,000	9,937,000
Deferred revenue	4,585,000		4,585,000		4,585,000	4,585,000
Performance Obligations Transferred Over Time Initiated at Go-live [Member]
Timing of Revenue Recognition [Abstract]
Total revenues	1,548,000		1,042,000		2,987,000	2,080,000
Deferred revenue	$ 4,766,000		$ 4,766,000		$ 4,766,000	$ 4,766,000
Maximum [Member]
Revenue, Performance Obligation [Abstract]
Period of contract with customer					3 years
Average time for customer to go live					10 months
Payment period of contract with customers					60 days
Minimum [Member]
Revenue, Performance Obligation [Abstract]
Period of contract with customer					1 year
Average time for customer to go live					8 months
Payment period of contract with customers					30 days
ASU 2016-02 [Member]
Recently Adopted Accounting Standards - Leases [Abstract]
Operating liabilities							$ 3,132,000
ROU assets							$ 3,132,000
[1]	Derived from audited financial statements.

LINE OF CREDIT and TERM NOTE (D

LINE OF CREDIT and TERM NOTE (Details) - USD ($)	Aug. 11, 2017	Apr. 30, 2018	Jan. 31, 2018	Dec. 31, 2017	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018	[1]	Jul. 24, 2018
Line of Credit and Term Loan with Western Alliance Bank [Abstract]
Line of credit, outstanding amount					$ 2,647,000		$ 2,647,000		$ 2,669,000
Business Financing Agreement [Member]
Line of Credit and Term Loan with Western Alliance Bank [Abstract]
Debt instrument, maturity date							Sep. 1, 2019
Business Financing Agreement [Member] | Term Loan [Member]
Line of Credit and Term Loan with Western Alliance Bank [Abstract]
Debt instrument, face amount	$ 400,000
Proceeds from issuance of debt	400,000
First payment period of debt payment for interest							6 months
Remaining period of debt payment for principal and interest							18 months
Frequency of periodic payment							Monthly
Repayment of debt		$ 125,000	$ 125,000	$ 150,000
Business Financing Agreement [Member] | Term Loan [Member] | Wall Street Journal Prime Rate [Member]
Line of Credit and Term Loan with Western Alliance Bank [Abstract]
Basis spread on variable interest rate							1.75%
Business Financing Agreement [Member] | Revolving Credit Line [Member]
Line of Credit and Term Loan with Western Alliance Bank [Abstract]
Maximum borrowing capacity	$ 2,400,000
Percentage of borrowing base based on eligible domestic accounts receivable	80.00%
Line of credit interest rate					7.00%		7.00%
Business Financing Agreement [Member] | Revolving Credit Line [Member] | Wall Street Journal Prime Rate [Member]
Line of Credit and Term Loan with Western Alliance Bank [Abstract]
Basis spread on variable interest rate							1.50%
Second Modification Business Financing Agreement [Member]
Line of Credit and Term Loan with Western Alliance Bank [Abstract]
Interest expense					$ 44,000	$ 64,000	$ 98,000	$ 99,000
Actual EBITDA trailing period							6 months
Actual EBITDA trailing period, test value							$ 1
Second Modification Business Financing Agreement [Member] | Revolving Credit Line [Member]
Line of Credit and Term Loan with Western Alliance Bank [Abstract]
Debt instrument, maturity date							Nov. 15, 2020
Maximum borrowing capacity											$ 2,850,000
Line of credit, outstanding amount					2,647,000		$ 2,647,000
Line of credit, remaining borrowing capacity					$ 203,000		$ 203,000
[1]	Derived from audited financial statements.

LEASES (Details)

LEASES (Details)	6 Months Ended
	Jun. 30, 2019USD ($)LeaseSubsidiary	Dec. 31, 2018USD ($)
Lease, Cost [Abstract]
Right-of-use assets	$ 2,567,000	$ 0	[1]
Lease liabilities	$ 2,567,000
Number of leases renewed | Lease	1
Number of subsidiaries at which operating lease was renewed | Subsidiary	1
Renewed lease term	2 years
ASU 2016-02 [Member]
Lease, Cost [Abstract]
Right-of-use assets		3,132,000
Lease liabilities		$ 3,132,000
Minimum [Member]
Lease, Cost [Abstract]
Remaining lease term	1 year
Maximum [Member]
Lease, Cost [Abstract]
Remaining lease term	4 years
[1]	Derived from audited financial statements.

LEASES, Impact of New Lease Sta

LEASES, Impact of New Lease Standard on Condensed Consolidated Balance Sheet (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018	[1]
Impact of New Lease Standard on Condensed Consolidated Balance Sheet [Abstract]
Right-of-use assets	$ 2,567,000		$ 2,567,000		$ 0
Current lease liabilities	1,017,000		1,017,000		0
Noncurrent lease liabilities	1,550,000		1,550,000		$ 0
Total lease liabilities	$ 2,567,000		$ 2,567,000
Weighted average remaining lease term	2 years 2 months 12 days		2 years 2 months 12 days
Weighted average discount rate	7.17%		7.17%
Operating lease cost	$ 320,000	$ 326,000	$ 640,000	$ 652,000
[1]	Derived from audited financial statements.

LEASES, Supplemental Cash Flow

LEASES, Supplemental Cash Flow Information (Details)	6 Months Ended
	Jun. 30, 2019USD ($)
Supplemental Cash Flow Information [Abstract]
Cash paid for amounts included in the measurement of operating lease liabilities	$ 656,000

LEASES, Future Maturities of Op

LEASES, Future Maturities of Operating Lease Liabilitie (Details)	Jun. 30, 2019USD ($)
Future Maturities of Operating Lease Liabilities [Abstract]
2019 (excluding the six months ended June 30, 2019)	$ 640,000
2020	1,049,000
2021	837,000
2022	452,000
2023	1,000
Total lease payments	2,979,000
Less: imputed interest	(412,000)
Total	$ 2,567,000

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
INCOME TAXES [Abstract]
Interest or penalties related to uncertain tax positions	$ 0	$ 0	$ 0	$ 0
Net deferred tax assets	$ 10,900,000		$ 10,900,000
Percentage of valuation allowance against deferred tax assets			100.00%

EQUITY, Activity of Stock Optio

EQUITY, Activity of Stock Options (Details)	6 Months Ended
	Jun. 30, 2019USD ($)$ / sharesshares
Share-based Compensation, Nonvested Awards, Compensation [Abstract]
Unrecognized compensation cost related to non-vested options | $	$ 527,000
Options weighted average remaining vesting period	3 years 4 months 2 days
Number of shares available for granting future options (in shares)	328,000
Incentive Stock Option [Member]
Share-based Compensation, Nonvested Awards, Compensation [Abstract]
Incentive stock options exercisable period	4 years
Incentive stock options contractual term	10 years
Stock Option Plan [Member]
Share-based Compensation, Nonvested Awards, Compensation [Abstract]
Incentive stock options contractual term	6 years 11 days
Number of Shares [Roll Forward]
Beginning balance (in shares)	762,000
Granted (in shares)	205,000
Exercised (in shares)	(33,000)
Forfeited (in shares)	(60,000)
Ending balance (in shares)	874,000
Weighted Average Exercise Price Per Share [Abstract]
Beginning balance (in dollars per share) | $ / shares	$ 2.54
Granted (in dollars per share) | $ / shares	5.86
Exercised (in dollars per share) | $ / shares	1.83
Forfeited (in dollars per share) | $ / shares	1.76
Ending balance (in dollars per share) | $ / shares	$ 3.20

EQUITY, Outstanding Options Und

EQUITY, Outstanding Options Under Stock Options Plans (Details) - Stock Option Plan [Member] - USD ($)	6 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Number of Shares [Roll Forward]
Outstanding Options (in shares)	874,000	762,000
Ending Vested and Exercisable (in shares)	540,000
Options Vested and Expected to Vest (in shares)	757,000
Weighted Average Exercise Price Per Share [Abstract]
Outstanding Options (in dollars per share)	$ 3.20	$ 2.54
Ending Vested and Exercisable (in dollars per share)	2.44
Options Vested and Expected to Vest (in dollars per share)	$ 3.03
Weighted Average Remaining Contractual Term [Abstract]
Outstanding Options	6 years 11 days
Ending Vested and Exercisable	4 years 3 months 11 days
Options Vested and Expected to Vest	5 years 7 months 13 days
Aggregate Intrinsic Value [Abstract]
Outstanding Options	$ 2,552,000
Ending Vested and Exercisable	1,838,000
Options Vested and Expected to Vest	$ 2,154,000

EQUITY, Convertible Preferred S

EQUITY, Convertible Preferred Stock (Details) - USD ($)	Sep. 24, 2008	Mar. 31, 2019	Jun. 30, 2019	Dec. 31, 2018		Jun. 30, 2018	Jun. 20, 2014
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract]
Accrued dividend			$ 250,000			$ 250,000
Series A Convertible Preferred Stock [Member]
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract]
Preferred stock, issued (in shares)			826,000	826,000
Preferred stock, value issued			$ 8,000	$ 8,000	[1]
Percentage of daily accrual	10.00%
Accrued dividend			$ 579,000
Convertible preferred stock, shares issued upon conversion (in shares)			1
Number of consecutive trading days			30 days
Series A Convertible Preferred Stock [Member] | Minimum [Member]
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract]
Redemption percentage of preferred stock			130.00%
Percentage of the closing price of common stock to then current conversion price for mandatory and automatic conversion into shares of common stock			300.00%
Series A Convertible Preferred Stock [Member] | Chief Executive Officer [Member]
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract]
Preferred stock, issued (in shares)	826,000
Share price (in dollars per share)	$ 3.63
Preferred stock, value issued	$ 3,000,000
Series B Convertible Preferred Stock [Member]
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract]
Preferred stock, issued (in shares)			797,000	797,000
Preferred stock, value issued			$ 8,000	$ 8,000	[1]
Percentage of daily accrual			10.00%
Accrued dividend			$ 366,000
Convertible preferred stock, shares issued upon conversion (in shares)			1
Number of consecutive trading days			30 days
Series B Convertible Preferred Stock [Member] | Minimum [Member]
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract]
Percentage of the closing price of common stock to then current conversion price for mandatory and automatic conversion into shares of common stock			300.00%
Series B Convertible Preferred Stock [Member] | Chief Executive Officer [Member]
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract]
Preferred stock, issued (in shares)							797,000
Share price (in dollars per share)							$ 2.51
Percentage of shares of preferred stock convertible into shares of common stock		100.00%
Series B Convertible Preferred Stock [Member] | Chief Executive Officer [Member] | Revolving Credit Facility [Member]
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract]
Long-term debt							$ 2,000,000
[1]	Derived from audited financial statements.

(LOSS) EARNINGS PER SHARE (Deta

(LOSS) EARNINGS PER SHARE (Details) - USD ($)	3 Months Ended				6 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2019	Jun. 30, 2018
(LOSS) EARNINGS PER SHARE [Abstract]
Number of shares of outstanding convertible preferred stock eligible to be converted into common stock (in shares)	1,623,000				1,623,000
Percentage of outstanding convertible preferred stock eligible to be converted into common stock	100.00%				100.00%
Numerator [Abstract]
Net (loss) income	$ (586,000)	$ 55,000	$ 304,000	$ 6,000	$ (531,000)	$ 310,000
Preferred dividend	125,000		125,000		250,000	250,000
Net (loss) income available to common stockholders	$ (711,000)		$ 179,000		$ (781,000)	$ 60,000
Denominator [Abstract]
Basic weighted average number of common shares outstanding (in shares)	3,617,000		3,594,000		3,617,000	3,594,000
Effect of dilutive stock options (in shares)	0		179,000		0	179,000
Diluted weighted average number of common shares outstanding (in shares)	3,617,000		3,773,000		3,617,000	3,773,000
Basic earnings per common share (in dollars per share)	$ (0.20)		$ 0.05		$ (0.22)	$ 0.02
Diluted earnings per common share (in dollars per share)	$ (0.20)		$ 0.05		$ (0.22)	$ 0.02

GEOGRAPHIC REGION DATA (Details

GEOGRAPHIC REGION DATA (Details)	3 Months Ended				6 Months Ended
	Jun. 30, 2019USD ($)	Mar. 31, 2019USD ($)	Jun. 30, 2018USD ($)	Mar. 31, 2018USD ($)	Jun. 30, 2019USD ($)Region	Jun. 30, 2018USD ($)
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract]
Number of geographic regions | Region					3
Geographic Areas, Revenues from External Customers [Abstract]
Revenues	$ 6,415,000		$ 6,632,000		$ 13,035,000	$ 13,328,000
Net income (loss)	(586,000)	$ 55,000	304,000	$ 6,000	(531,000)	310,000
Software License Fees [Member]
Geographic Areas, Revenues from External Customers [Abstract]
Revenues	462,000		892,000		1,162,000	1,311,000
Subscriptions [Member]
Geographic Areas, Revenues from External Customers [Abstract]
Revenues	1,233,000		864,000		2,459,000	1,692,000
Services and Maintenance [Member]
Geographic Areas, Revenues from External Customers [Abstract]
Revenues	4,720,000		4,876,000		9,414,000	10,325,000
United States [Member] | Reportable Geographical Components [Member]
Geographic Areas, Revenues from External Customers [Abstract]
Net income (loss)	(282,000)		170,000		(71,000)	109,000
United States [Member] | Reportable Geographical Components [Member] | Software License Fees [Member]
Geographic Areas, Revenues from External Customers [Abstract]
Revenues	227,000		123,000		596,000	448,000
United States [Member] | Reportable Geographical Components [Member] | Subscriptions [Member]
Geographic Areas, Revenues from External Customers [Abstract]
Revenues	678,000		409,000		1,357,000	824,000
United States [Member] | Reportable Geographical Components [Member] | Services and Maintenance [Member]
Geographic Areas, Revenues from External Customers [Abstract]
Revenues	3,009,000		3,048,000		5,998,000	6,383,000
Foreign [Member] | Reportable Geographical Components [Member] | Software License Fees [Member]
Geographic Areas, Revenues from External Customers [Abstract]
Revenues	235,000		769,000		566,000	863,000
Foreign [Member] | Reportable Geographical Components [Member] | Subscriptions [Member]
Geographic Areas, Revenues from External Customers [Abstract]
Revenues	555,000		455,000		1,102,000	868,000
Foreign [Member] | Reportable Geographical Components [Member] | Services and Maintenance [Member]
Geographic Areas, Revenues from External Customers [Abstract]
Revenues	1,711,000		1,828,000		3,417,000	3,942,000
Europe [Member] | Reportable Geographical Components [Member]
Geographic Areas, Revenues from External Customers [Abstract]
Net income (loss)	(316,000)		(159,000)		(516,000)	(215,000)
Europe [Member] | Reportable Geographical Components [Member] | Software License Fees [Member]
Geographic Areas, Revenues from External Customers [Abstract]
Revenues	55,000		103,000		107,000	152,000
Europe [Member] | Reportable Geographical Components [Member] | Subscriptions [Member]
Geographic Areas, Revenues from External Customers [Abstract]
Revenues	266,000		315,000		542,000	587,000
Europe [Member] | Reportable Geographical Components [Member] | Services and Maintenance [Member]
Geographic Areas, Revenues from External Customers [Abstract]
Revenues	605,000		594,000		1,235,000	1,184,000
Asia Pacific [Member] | Reportable Geographical Components [Member]
Geographic Areas, Revenues from External Customers [Abstract]
Net income (loss)	12,000		293,000		56,000	416,000
Asia Pacific [Member] | Reportable Geographical Components [Member] | Software License Fees [Member]
Geographic Areas, Revenues from External Customers [Abstract]
Revenues	180,000		666,000		459,000	711,000
Asia Pacific [Member] | Reportable Geographical Components [Member] | Subscriptions [Member]
Geographic Areas, Revenues from External Customers [Abstract]
Revenues	289,000		140,000		560,000	281,000
Asia Pacific [Member] | Reportable Geographical Components [Member] | Services and Maintenance [Member]
Geographic Areas, Revenues from External Customers [Abstract]
Revenues	$ 1,106,000		$ 1,234,000		$ 2,181,000	$ 2,758,000