Significant Accounting Policies (Tables)

12 Months Ended

Jan. 31, 2019

Significant Accounting Policies

Schedule of Bad Debt Expense

	2018		2017
Bad debt expense	$	13,000	$	234,000

Property and Equipment

Computer equipment and software	3‑4 years
Office equipment	5 years
Office furniture and fixtures	7 years
Leasehold improvements	Term of lease or estimated useful life, whichever is shorter

Schedule of Capitalized Software Development Costs

	Fiscal Year
	2018		2017
Amortization expense on internally-developed software included in:
Cost of systems sales	$	768,000	$	1,914,000
Cost of software as a service		379,000		186,000
Cost of audit services		13,000		13,000
Total amortization expense on internally-developed software	$	1,160,000	$	2,113,000

Fair Value of Liabilities on a Recurring Basis

			Quoted Prices in		Significant Other		Significant
	Total Fair		Active Markets		Observable Inputs		Unobservable Inputs
	Value		(Level 1)		(Level 2)		(Level 3)
At January 31, 2019
Royalty liability (1) (3)	$	905,000	$	—	$	—	$	905,000
At January 31, 2018
Royalty liability (1) (2)	$	2,469,000	$	—	$	—	$	2,469,000

(1) The initial fair value of royalty liability was determined by management with the assistance of an independent third-party valuation specialist, and by management thereafter. Fair value adjustments are included within miscellaneous expense in the consolidated statements of operations.

(2) The fair value of the royalty liability was determined based on the probability-weighted revenue scenarios for the Streamline Health® Clinical Analytics solution licensed from Montefiore Medical Center (discussed in Note 12 – Commitments and Contingencies).

Following the modification of the Royalty Agreement in the second quarter of fiscal 2018 (discussed in Note 12 – Commitments and Contingencies), the royalty liability was significantly reduced as a result of the commitment to fulfill a portion of our obligation by providing incremental maintenance services. The fair value of the royalty liability was determined based on the portion of the modified royalty commitment payable in cash.

Schedule of Impact of Adoption of New Accounting Pronouncement

	Year Ended January 31, 2019
	As reported under ASC 606		Balances without adoption of ASC 606		Adjustments due to ASC 606
Revenues
Systems sales	$	2,472,000	$	2,322,000	$	150,000
Maintenance and support		12,586,000		12,590,000		(4,000)

	As of January 31, 2019
	As reported under ASC 606		Balances without adoption of Topic 606		Adjustments due to ASC 606
Assets
Contract receivables, current	$	1,263,000	$	803,000	$	460,000
Contract receivables, noncurrent		407,000		27,000		380,000
Liabilities
Deferred revenues, current		8,338,000		9,084,000		(746,000)
Shareholders' Equity
Accumulated deficit	$	(76,550,000)	$	(78,136,000)	$	1,586,000

Schedule of Disaggregated Revenue

	Year Ended January 31, 2019
	Recurring Revenue		Non-recurring Revenue		Total
Systems sales	$	899,000	$	1,573,000	$	2,472,000
Professional services		—		1,336,000		1,336,000
Audit services		—		1,118,000		1,118,000
Maintenance and support		12,586,000		—		12,586,000
Software as a service		4,853,000		—		4,853,000
Total revenue:	$	18,338,000	$	4,027,000	$	22,365,000

Schedule of Cumulative Effect of Adoption of Accounting Pronouncement

	As Reported January 31, 2018		Adjustments due to ASC 606		As Adjusted February 1, 2018
ASSETS
Contract receivables, current	$	224,000	$	283,000	$	507,000
Contract receivables, noncurrent		—		468,000		468,000
LIABILITIES
Deferred revenues, current		9,482,000		(689,000)		8,793,000
STOCKHOLDERS' EQUITY
Accumulated deficit	$	(72,125,000)	$	1,440,000	$	(70,685,000)

Schedule of Earnings Per Share, Basic and Diluted

	Fiscal Year
	2018		2017
Net earnings (loss)	$	(5,865,000)	$	(3,099,000)
Weighted average shares outstanding - Basic		19,540,980		19,090,899
Stock options, Restricted stock and Series A Convertible Preferred Stock		—		—
Weighted average shares outstanding - Diluted		19,540,980		19,090,899
Basic net earnings (loss) per share of common stock	$	(0.30)	$	(0.16)
Diluted net earnings (loss) per share of common stock	$	(0.30)	$	(0.16)