NOTE A - SUMMARY OF ACCOUNTING POLICIES AND NATURE OF OPERATIONS: Revenue Recognition (Policies)

12 Months Ended

Dec. 31, 2018

Policies

Revenue Recognition

Revenue Recognition

Revenue is recognized when control of the services sold by the Company is transferred to customers in an amount that reflects the consideration the Company expects to receive in exchange for those services  Revenue that is received in advance of the services provided is deferred until the services are provided by the Company. Revenue related to set up charges is also deferred and amortized over the life of the contract.  Revenues are presented net of taxes and fees billed to customers and remitted to governmental authorities.

The Company determines revenue recognition through the following steps:

Identification of the contract, or contracts, with a customer; 

Identification of the performance obligations in the contract; 

Determination of the transaction price; 

Allocation of the transaction price to the performance obligations in the contract; and 

Recognition of revenue when, or as, the Company satisfies a performance obligation. 

The Company’s revenue is derived from usage-based fees earned from customers utilizing the Company’s services.  The Company has four primary streams of revenue consisting of its automated voice and text group message delivery service, its colocation and web hosting service and its technical support service.  Prior to February 1, 2018, the Company also had revenue from traditional telephone services (see Note I – Discontinued Operations), which revenue was approximately 2% and 12% of total revenue for the years ended December 31, 2018 and 2017, respectively.

Revenue Description	For Year Ended December 31,2018	% of Total Revenue	For Year Ended December 31, 2017	% of Total Revenue
Automated voice and text group message delivery service	$ 1,259,656	61 %	$ 975,002	52 %
Colocation and web hosting service	520,923	25 %	518,939	27 %
Technical support service	238,431	12 %	248,803	13 %
Internet access service	51,470	2 %	146,869	8 %
Total revenue	$ 2,070,480	100 %	$ 1,889,613	100 %

Revenue from the Company’s automated voice and text group message delivery service and its access service is recognized pursuant to unwritten contracts created when the Company’s customers create an account on the Company’s website agreeing to be bound by the Company’s published Terms of Service and make a purchase.

Revenue from the Company’s traditional telephone services, its colocation and web hosting service, and its technical support service is recognized pursuant to written contracts executed by the Company and its customers.

Each of the Company's services represents a single performance obligation consisting of a distinct service that is transferred equally to each customer through the passage of time during a monthly service period, except for its automated voice and text group message delivery service which also includes transfer at the point in time that the customer utilizes the service.

None of the Company’s services have a transaction price which includes variable consideration, a significant financing component, any noncash consideration or consideration payable to a customer. The transaction price is the amount of consideration to which the Company expects to be entitled to in exchange for the service transferred to each customer.

Each of the Company’s services represents a single performance obligation and the “stand-alone selling price” is the same as the contract selling price.

All of the Company’s services are sold pursuant to written and unwritten contracts which require payment in advance for the services.