ins20161231_10k.htm

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

1.	ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Organization

– In this document, terms such as the “company”, “we”, “us”, “our” and “ISC” refer to Intelligent Systems Corporation, a Georgia corporation, and its consolidated subsidiaries.

Consolidation

– The financial statements include the accounts of Intelligent Systems Corporation and its majority owned and controlled U.S. and non-U.S. subsidiary companies after elimination of material inter-company accounts and transactions.

Nature of Operations

– As further explained in Note

March

31,

2015,

we sold our largest operating subsidiary, ChemFree Corporation. Accordingly, we have classified the ChemFree operations as discontinued operations in all periods presented. Our continuing operations consist primarily of our CoreCard Software, Inc. (“CoreCard”) subsidiary and its affiliate companies in Romania and India, as well as the corporate office which provides significant administrative, human resources and executive management support to CoreCard. CoreCard provides technology solutions and processing services to the financial technology and services market, commonly referred to as the FinTech industry.

Use of Estimates

– In preparing the financial statements in conformity with accounting principles generally accepted in the United States, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. These estimates and assumptions also affect amounts of revenues and expenses during the reporting periods. Actual results could differ from these estimates. Areas where we use estimates and make assumptions are to determine our allowance for doubtful accounts, valuation of our investments, depreciation and amortization expense, accrued expenses and deferred income taxes.

Translation of Foreign Currencies

– We consider that the respective local currencies are the functional currencies for our foreign operations. We translate assets and liabilities to U.S. dollars at period-end exchange rates. We translate income and expense items at average rates of exchange prevailing during the period. Translation adjustments are recorded as accumulated other comprehensive gain or loss as a separate component of stockholders’ equity. Upon sale of an investment in a foreign operation, the currency translation adjustment component attributable to that operation is removed from accumulated other comprehensive loss and is reported as part of gain or loss on sale of discontinued operations.

Accounts Receivable and Allowance for Doubtful Accounts

– Accounts receivable are customer obligations due under normal trade terms. They are stated at the amount management expects to collect. We sell our software products and transaction processing services to companies involved in a variety of industries that provide some form of credit or prepaid financing options or perform financial services. We perform continuing credit evaluations of our customers’ financial condition and we do not require collateral. The amount of accounting loss for which we are at risk in these unsecured receivables is limited to their carrying value.

December

31,

2016

is adequate. However, actual write-offs might exceed the recorded allowance. Refer to Note

Marketable Securities

–

Our marketable securities, which are classified as available-for-sale, are stated at fair value, and primarily consist of investments in exchange traded funds comprised of dividend paying companies. The fair value of the marketable securities is

$418,000

December

31,

2016;

an unrealized gain of

$22,000

is included in other comprehensive loss. The fair value of the marketable securities was

$396,000

December

31,

2015;

an unrealized loss of

$68,000

was included in other comprehensive loss.

Property and Equipment

– Property and equipment are recorded at cost and depreciated over their estimated useful lives using the straight-line method. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful life of the related asset. Upon retirement or sale, the cost of assets disposed of and the related accumulated depreciation are removed from the accounts and any resulting gain or loss is credited or charged to income. Repairs and maintenance costs are expensed as incurred. We continually evaluate whether events and circumstances have occurred that indicate the remaining estimated useful life of property and equipment

may

warrant revision, or that the remaining balance of these assets

may

not be recoverable. An asset is considered to be impaired when its carrying amount exceeds the sum of the undiscounted future net cash flows expected to result from the use of the asset and its eventual disposition. The amount of the impairment loss, if any, which is equal to the amount by which the carrying value exceeds its fair value, is charged to current operations. For the year ended

December

31,

2015,

such impairment existed. As a result of a comprehensive physical inventory at our U.S. based operations in

2016,

various assets were disposed of and the cost of the assets and related accumulated depreciation were removed from the accounts. A net loss of

$1,000

was recognized in the year ended

December

31,

2016.

Classification	Useful life in years
Machinery and equipment	3	-	5
Furniture and fixtures	5	-	7
Leasehold improvements	1	-	5
Building	39

The cost of each major class of property and equipment at

December

31,

2016

and

2015

is as follows:

(in thousands)	201 6			201 5
Machinery and equipment	$	1,696		$	2,178
Furniture and fixtures		154			197
Leasehold improvements		0			258
Building		308			308
Subtotal		2,158			2,941
Accumulated depreciation		(1,458	)		(2,305	)
Property and equipment, net	$	700		$	636

Depreciation expense for continuing operations was

$248,000

and

$217,000

2016

and

2015,

respectively. These expenses are included in general and administrative expenses or, for assets associated with our processing data centers, are included in cost of services.

Following the sale of our ChemFree subsidiary in

March

2015,

we no longer have any leased equipment or lease rental income.

Investments

– For entities in which we have a

percent ownership interest and over which we exercise significant influence, but do not have control, we account for investments in privately-held companies under the equity method, whereby we record our proportional share of the investee’s net income or net loss as an adjustment to the carrying value of the investment. We account for investments of less than

percent in non-marketable equity securities of corporations at the lower of cost or market. Our policy with respect to investments is to record an impairment charge when we believe an investment has experienced a decline in value that is other than temporary. At least quarterly, we review our investments to determine any impairment in their carrying value and we write-down any impaired asset at quarter-end to our best estimate of its current realizable value. Any such charges could have a material adverse impact on our financial condition or results of operations and are generally not predictable in advance. During the year ended

December

31,

2016,

we recognized

$713,000

of investment loss, net, attributable to the write-down of

$750,000

on a cost method investment which was offset in part by a gain of

$37,000

on a final payment after the escrow period on a prior minority investment sale. During the year ended

December

31,

2015,

we recognized

$1,247,000

of investment income, net, principally related to a gain of

$2,034,000

on the sale of

one

of our cost method investments which was offset in part by an impairment charge of

$792,000

to reduce the carrying value of our equity method investment to

$100,000,

management’s estimate of realizable value. At

December

31,

2016

and

2015,

the aggregate value of investments was

$1,272,000

and

$1,015,000,

respectively. We signed an agreement acquiring a

$1,000,000

investment in a privately-held technology company in the FinTech industry on

December

30,

2016.

The investment is included in the

December

31,

2016

aggregate value; however, the funding of the investment did not occur until subsequent to year end on

January

2017.

Patents

–

Following the sale of our ChemFree subsidiary, we no longer have any undepreciated patent assets on our balance sheet and no amortization expense for continuing operations.

Fair Value of Financial Instruments

–

The carrying value of cash, accounts receivable, accounts payable and certain other financial instruments (such as accrued expenses and other current assets and liabilities) included in the accompanying consolidated balance sheets approximates their fair value principally due to the short-term maturity of these instruments.

Financial instruments that potentially subject us to concentrations of credit risk consist principally of cash and trade accounts. Our available cash is held in accounts managed by

third

-party financial institutions. Cash

may

exceed the Federal Deposit Insurance Corporation, or FDIC, insurance limits. While we monitor cash balances on a regular basis and adjust the balances as appropriate, these balances could be impacted if the underlying financial institutions fail. To date, we have experienced no loss or lack of access to our cash; however, we can provide no assurances that access to our cash will not be impacted by adverse conditions in the financial markets.

A concentration of credit risk

may

exist with respect to trade receivables, as a substantial portion of our customers are concentrated in the financial services industry.

Fair Value Measurements

–

In determining fair value, we use quoted market prices in active markets. Generally accepted accounting principles (“GAAP”) establishes a fair value measurement framework, provides a single definition of fair value, and requires expanded disclosure summarizing fair value measurements. GAAP emphasizes that fair value is a market-based measurement, not an entity specific measurement. Therefore, a fair value measurement should be determined based on the assumptions that market participants would use in pricing an asset or liability.

The hierarchy is measured in

three

levels based on the reliability of inputs:

• Level

- Valuations based on quoted prices in active markets for identical assets or liabilities that the company has the ability to access. Valuation adjustments and block discounts are not applied to Level

instruments.

• Level

- Valuations based on quoted prices in less active, dealer or broker markets. Fair values are primarily obtained from

third

party pricing services for identical or comparable assets or liabilities.

• Level

- Valuations derived from other valuation methodologies, including pricing models, discounted cash flow models and similar techniques, and not based on market, exchange, dealer, or broker-traded transactions. Level

valuations incorporate certain assumptions and projections that are not observable in the market and significant professional judgment is needed in determining the fair value assigned to such assets or liabilities.

Our available-for-sale investments are classified within level

of the valuation hierarchy.

Revenue Recognition

– Product revenue consists of fees from software licenses. Service revenue consists of fees for processing services; professional services for software customization, consulting, training; reimbursable expenses; and software maintenance and customer support.

Our software license arrangements generally fall into

one

of the following

four

categories:

●	an initial contract with the customer to license certain software modules, to provide services to get the customer live on the software (such as training and customization) and to provide post contract support (“PCS”) for a specified period of time thereafter (typically three months),

●	purchase of additional licenses for new modules or for tier upgrades for a higher volume of licensed accounts after the initial contract,

●	other optional standalone contracts, usually performed after the customer is live on the software, for services such as new interfaces or custom features requested by the customer, additional training and problem resolution not covered in annual maintenance contracts, and

●	contracts for certain licensed software products that involve an initial fee plus recurring monthly fees during the contract life.

may

be included in the initial software contracts, as described above. Revenues from these services contracts, which are generally performed within a relatively short period of time, are recognized when the services are complete.

Revenue is recorded net of applicable sales tax.

Deferred Revenue

–

Deferred revenue consists of advance payments by software customers for annual or quarterly PCS, advance payments from customers for software licenses and professional services not yet delivered, and initial implementation payments for processing services or bundled license and support services in multi-year contracts. We do not anticipate any loss under these arrangements. Deferred revenue is classified as long-term until such time that it becomes likely that the services or products will be provided within

months of the balance sheet date.

Cost of Revenue

– For cost of revenue for software contracts, we capitalize the contract specific direct costs, which are included in other current assets and other long-term assets on the Consolidated Balance Sheets, and recognize the costs when the associated revenue is recognized. Cost of revenue for services includes direct cost of services rendered, including reimbursed expenses, pass-through

third

party costs, and data center and compliance costs for processing services. We also capitalize the initial implementation fees for processing services contracts and recognize the costs over the life of the contract, when the corresponding revenue is recognized.

Software Development Expense

– Research and development costs are expensed in the period in which they are incurred. Contract specific software development costs are capitalized and recognized when the related contract revenue is recognized.

Warranty Costs

–The warranty related to software license contracts consists of a defined number of months (usually

three)

of PCS after the go-live date, which is accrued as of the go-live date and recognized over the warranty period.

Legal Expense

–

Legal expenses for continuing operations are recorded as a component of general and administrative expense in the period in which such expenses are incurred. In

2015,

legal expenses associated with the sale of our ChemFree subsidiary were included as a component of the transaction related expenses in determining the gain on the sale of discontinued operations.

Research and Development

– Research and development costs consist principally of compensation and benefits paid to certain company employees and certain other direct costs. All research and development costs are expensed as incurred.

Stock Based Compensation

– We record compensation cost related to unvested stock-based awards by recognizing the unamortized grant date fair value on a straight line basis over the vesting periods of each award. We have estimated forfeiture rates based on our historical experience. Stock option compensation expense for the years ended

December

31,

2016

and

2015

has been recognized as a component of general and administrative expenses in the accompanying Consolidated Financial Statements. We recorded

$31,000

and

$19,000

of stock-based compensation expense in the years ended

December

31,

2016

and

2015,

respectively.

In each of the years ended

December

31,

2016

and

2015,

a total of

12,000

options were granted pursuant to the

2011

Non-employee Directors Stock Option Plan. In

2016,

a total of

30,000

options were granted pursuant to the Intelligent Systems Corporation Stock Incentive Plan (the

“2015

Plan”). The fair value of each option granted in

2016

and

2015

has been estimated as of the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions:

Year ended December 31,	2016			2015
Risk free interest rate		.28	%		.27	%
Expected life of option in years		10			10
Expected dividend yield rate		0	%		0	%
Expected volatility		65	%		66	%

Under these assumptions, the weighted average fair value of options granted in

2016

and

2015

was

$2.63

and

$2.10

per share, respectively. The fair value of the grants is being amortized over the vesting period for the options. All of the company’s stock-based compensation expense relates to stock options. The total remaining unrecognized compensation cost at

December

31,

2016

related to unvested options amounted to

$103,000

and is expected to be recognized from

2017

through

2019.

Income Taxes

–

We utilize the asset and liability method of accounting for income taxes. As such, deferred tax assets and liabilities are established to recognize the future tax consequences attributable to differences between the financial statement carrying amounts of the existing assets and liabilities and their respective tax bases and for net tax operating loss carryforwards.

Comprehensive Income (Loss)

– Comprehensive income (loss) represents net income (loss) adjusted for the results of certain stockholders’ equity changes not reflected in the Consolidated Statements of Operations. These items are accumulated over time as “accumulated other comprehensive loss” on the Consolidated Balance Sheet and consist primarily of net earnings/loss and foreign currency translation adjustments associated with foreign operations that use the local currency as their functional currency as well as unrealized gains and losses on marketable securities.

Recent Accounting Pronouncements

– In

February

2016,

the FASB issued ASU

2016

– Leases (Topic

842)

related to the accounting for leases. This pronouncement requires lessees to record most leases on their balance sheet, while expense recognition on the income statement remains similar to current lease accounting guidance. The guidance also eliminates real estate-specific provisions and modifies certain aspects of lessor accounting. Under the new guidance, lease classification as either a finance lease or an operating lease will determine how lease-related revenue and expense are recognized. The pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after

December

15,

2018.

We are currently evaluating the effect on our Consolidated Financial Statements.

March

2016,

the FASB issued ASU

2016

– Revenue from Contracts with Customers (Topic

606)

related to reporting revenue gross versus net, or principal versus agent considerations. This pronouncement is meant to clarify the guidance in FASB ASU

2014

09,

Revenue from Contracts with Customers, as it pertains to principal versus agent considerations. Specifically, the guidance addresses how entities should identify goods and services being provided to a customer, the unit of account for a principal versus agent assessment, how to evaluate whether a good or service is controlled before being transferred to a customer, and how to assess whether an entity controls services performed by another party. The pronouncement has the same effective date as the new revenue standard, which is effective for fiscal years, and for interim periods within those fiscal years, beginning after

December

15,

2017.

We are currently evaluating the effect on our Consolidated Financial Statements.

March

2016,

the FASB issued ASU

2016

– Compensation – Stock Compensation (Topic

718)

related to simplifications of employee share-based payment accounting. This pronouncement eliminates the APIC pool concept and requires that excess tax benefits and tax deficiencies be recorded in the income statement when awards are settled. The pronouncement also addresses simplifications related to statement of cash flows classification, accounting for forfeitures, and minimum statutory tax withholding requirements. The pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after

December

15,

2016.

We are currently evaluating the effect on our Consolidated Financial Statements.

April

2016,

the FASB issued ASU

2016

– Revenue from Contract with Customers (Topic

606)

related to identifying performance obligations and licensing. This pronouncement is meant to clarify the guidance in FASB ASU

2014

09,

Revenue from Contracts with Customers. Specifically, the guidance addresses an entity’s identification of its performance obligations in a contract, as well as an entity’s evaluation of the nature of its promise to grant a license of intellectual property and whether or not that revenue is recognized over time or at a point in time. The pronouncement has the same effective date as the new revenue standard, which is effective for fiscal years, and for interim periods within those fiscal years, beginning after

December

15,

2017.

We are currently evaluating the effect on our Consolidated Financial Statements.

May

2016,

the FASB issued ASU

2016

– Revenue from Contracts with Customers (Topic

606)

related to narrow scope improvements. This pronouncement is meant to clarify the guidance in FASB ASU

2014

09,

Revenue from Contracts with Customers. The amendments in this update do not change the core principle of the guidance in Topic

606,

but rather, the amendments in this update affect certain aspects of Topic

606

which include: assessing the collectability criterion, accounting for contracts that do not meet certain criteria, presentation of sales taxes and other similar taxes collected from customers, noncash consideration, contract modifications, and completed contracts. The pronouncement has the same effective date as the new revenue standard, which is effective for fiscal years, and for interim periods within those fiscal years, beginning after

December

15,

2017.

We are currently evaluating the effect on our Consolidated Financial Statements.

October

2016,

the FASB issued ASU

2016

17,

Consolidation (Topic

810):

Interests Held though Related Parties that are Under Common Control, which amends the consolidation guidance on how a reporting entity that is the single decision maker of a variable interest entity (VIE) should treat indirect interests in the entity held through related parties that are under common control with the reporting entity when determining whether it is the primary beneficiary of that VIE. Under the amendments, a single decision maker is not required to consider indirect interests held through related parties that are under common control with the single decision maker to be the equivalent of direct interests in their entirety. Instead, a single decision maker is required to include those interests on a proportionate basis consistent with indirect interests held through other related parties. This guidance is effective for public business entities for fiscal years beginning after

December

15,

2016,

including interim periods within those fiscal years. Early application is permitted. We are currently evaluating the impact this guidance will have on our consolidated financial statements.

November

2016,

the FASB issued ASU

2016

18,

Statement of Cash Flows (Topic

230):

Restricted Cash, which clarifies the presentation of restricted cash on the statement of cash flows. Amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning and ending cash balances on the statement of cash flows. This guidance is effective for public business entities for fiscal years beginning after

December

15,

2017.

Early application is permitted. We are currently evaluating the impact this will have on our consolidated financial statements.

January

2017,

the FASB issued ASU

2017

04,

Intangibles – Goodwill and Other (Topic

350),

which simplifies the subsequent measurement of goodwill by eliminating Step

of the goodwill impairment test. Under this new standard, an entity should perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and then recognize an impairment charge, as necessary, for the amount by which the carrying amount exceeds the reporting unit’s fair value, not to exceed the total amount of goodwill allocated to that reporting unit. This guidance is effective for fiscal years beginning after

December

15,

2019.

Early application is permitted. We do not believe the adoption of this new guidance will have a material impact on our consolidated financial statements.

February

2017,

the FASB issued ASU

2017

05,

Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic

610

20):

Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets. The amendments in this Update clarify the scope of the nonfinancial asset guidance in Subtopic

610

20.

The amendments also clarify that the derecognition of all businesses and nonprofit activities (except those related to conveyances of oil and gas mineral rights or contracts with customers) should be accounted for in accordance with the derecognition and deconsolidation guidance in Subtopic

810

10.

In addition, the amendments eliminate the exception in the financial asset guidance for transfers of investments (including equity method investments) in real estate entities and supersede the guidance in the Exchanges of a Nonfinancial Asset for a Noncontrolling Ownership Interest Subsection within Topic

845.

The amendments in this Update also provide guidance on the accounting for what often are referred to as partial sales of nonfinancial assets within the scope of Subtopic

610

and contributions of nonfinancial assets to a joint venture or other noncontrolled investee. This guidance is effective for public entities for fiscal years beginning after

December

15,

2017,

including interim reporting periods within that reporting period. We are currently evaluating the impact this will have on our consolidated financial statements.

We have considered all other recently issued accounting pronouncements and do not believe the adoption of such pronouncements will have a material impact on our Consolidated Financial Statements.

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Note 2 - Discontinued Operations

12 Months Ended

Dec. 31, 2016

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

2.	DISCONTINUED OPERATIONS

March

31,

2015,

we and CRC Industries, Inc., a Pennsylvania corporation (“CRC”), entered into a Stock Purchase Agreement (the “Stock Purchase Agreement”) whereby we sold all of the issued and outstanding stock of our wholly owned subsidiary, ChemFree Corporation (“ChemFree”), to CRC (the “ChemFree Sale”). The purchase price for the all-cash sale was

$21,600,000,

subject to customary post-closing adjustments, including a working capital adjustment. The company retained all net cash of ChemFree as of the closing date. In the quarter ended

March

31,

2015,

the company recorded a gain on the sale of ChemFree of

$18,746,000

and retroactively classified the ChemFree operations as discontinued operations in all periods presented. Following the closing of the sale, the company recorded a net of

$56,000

in post-closing adjustments primarily to reduce our estimated tax liability, resulting in a gain on the sale of

$18,802,000

in the year ended

December

31,

2015.

The company applied operating loss and capital loss carryforwards against the gain on sale and incurred an alternative minimum tax liability of approximately

$120,000

on the transaction, which amount is included in liabilities of discontinued operations as of

December

31,

2015.

The tax was paid in

2016.

At the closing, a total of

$3,300,000

of the purchase price was placed in escrow for purposes of securing our obligations to indemnify CRC and to refund a portion of the purchase price if ChemFree’s actual working capital amount on the closing date is less than the agreed upon target set forth in the Stock Purchase Agreement. In

2015,

$880,000

of the escrow amount, net of the final working capital adjustment of

$220,000

was released to the company. The remaining escrow balance of

$2,200,000

which was shown as Restricted Cash as of

December

31,

2015,

was released in its entirety in

2016,

along with interest earned.

The following condensed financial information is provided for the ChemFree discontinued operations for the periods shown:

Year ended December 31 , (in thousands)	201 6		2015
Net sales		--	$	2,902
Operating income		--		197
Net income before income taxes		--		6
Income taxes		--		9
Net loss from discontinued operations		--	$	(3	)

The only liabilities of discontinued operations, presented separately on the balance sheet as of

December

31,

2015,

consist of

$120,000

in current tax liabilities, which were paid in

2016.

The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

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Note 3 - Option Agreement

12 Months Ended

Dec. 31, 2016

Other Income and Other Expense Disclosure [Text Block]

3.	OPTION AGREEMENT

March

20,

2012,

Intelligent Systems Corporation entered into an Option Agreement (the “Option Agreement”) with Central National Bank, a national banking association (“CNB”). The Option Agreement grants to CNB the option to acquire from ISC the number of shares of stock in the company’s CoreCard Software subsidiary equal to

five

percent of ISC’s equity ownership in CoreCard. At the end of

2016,

ISC increased its ownership of CoreCard from approximately

percent on a fully diluted basis to

100

percent. The number of shares covered by the option

may

be increased, up to

ten

percent based on achievement of certain volumes of prepaid cards issued by CNB and processed by CoreCard, as defined in the Option Agreement. The option has an exercise price of

one

million dollars for each

five

percent of ISC’s interest in CoreCard, expires on

December

31,

2017

and can be exercised at any time before it expires. Further, at any time between

September

30,

2014

and

June

30,

2017,

subject to certain earlier termination provisions, CNB

may

elect to require ISC to repurchase the option at a purchase price equal to the fair market value of the option less

one

million dollars. As of

December

31,

2016,

CNB has not requested that ISC repurchase the option. We entered into the Option Agreement in recognition of CNB’s cooperation and contribution to building CoreCard’s card processing business. During the year ended

December

31,

2012,

we recorded an expense of

$18,000

in the marketing category and carry a long-term liability of

18,000

December

31,

2016

and

2015

to recognize the financial impact of the Option Agreement.

XML 24 R11.htm IDEA: XBRL DOCUMENT

Note 4 - Investments

12 Months Ended

Dec. 31, 2016

Equity Method Investments and Joint Ventures Disclosure [Text Block]

4.	INVESTMENTS

December

31,

2016

and

2015,

our ownership interest in NKD Enterprises, LLC was

25.5

We account for our investment by the equity method of accounting. The carrying value of NKD Enterprises, LLC is included in long-term investments. In

December

2015,

we recorded an impairment charge of

$792,000

to reduce the carrying value of our investment in NKD Enterprises, LLC to management’s estimate of net realizable value.

	Carrying Value
At December 31, (in thousands)	201 6		201 5
NKD Enterprises, LLC	$	64	$	107

The following table presents the unaudited summarized financial information for NKD Enterprises, LLC for the respective time periods:

As of and for the year ended December 31 , (in thousands)	201 6			201 5
Revenues	$	2,050		$	1,878
Operating loss		(168	)		(58	)
Net loss		(168	)		(58	)

As of and for the year ended December 31, (in thousands)	201 6		201 5
Current assets	$	107	$	133
Non-current assets		3,002		3,004
Current liabilities		400		260
Stockholders’ equity		2,709		2,877

December

23,

2015,

one

of our investee companies in which we held a small equity stake, Lancope Inc., was sold to Cisco, Inc. We recognized a gain of

$2,034,000

against our carrying value of

$214,000

in the

fourth

quarter of

2015.

Cash from the sale of

$2,248,000

(which is included in “Other Current Assets” at

December

31,

2015)

was received in early

January

2016.

A portion of the sale proceeds is being held in escrow for

eighteen

months for claims that the buyer

may

assert against Lancope, Inc. Our portion of the escrow

may

be as much as

$390,000;

however, as there is presently no way to estimate how much, if any, of the escrow will be released to us, we have not included any provision for the receipt of any escrow funds in our current financial statements.

In the quarter ended

March

31,

2016,

we recorded an impairment charge of

$700,000

to reduce the carrying value of our minority equity ownership in Lumense, Inc., an early stage sensor technology company, to

$50,000.

Subsequently, in the quarter ended

June

30,

2016,

we recorded an additional impairment charge of

$50,000

to fully write-down our minority equity ownership in Lumense to

zero.

Given that Lumense has no reasonable prospects to fund its operations and product development, we believe a full write-down is prudent and required.

December

30,

2016

we signed an agreement to invest

$1,000,000

in a privately held technology company and program manager, with

$500,000

of the investment held in escrow to pay future fees to CoreCard pursuant to a Processing Agreement entered into by the parties. The investment was funded on

January

2017;

the liability for the investment funding is shown in “Other Current Liabilities” at

December

31,

2016.

XML 25 R12.htm IDEA: XBRL DOCUMENT

Note 5 - Accounts Receivable and Customer Concentrations

12 Months Ended

Dec. 31, 2016

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

5.	ACCOUNTS RECEIVABLE and customer concentrations

December

31,

2016

and

2015,

our allowance for doubtful accounts amounted to

$15,000

and

$0,

respectively. Net charges against the allowance for doubtful accounts were

in both

2016

and

2015.

The following table indicates the percentage of consolidated revenue from continuing operations and year-end accounts receivable represented by each customer that represented more than

percent of consolidated revenue from continuing operations or year-end accounts receivable.

	Revenue						Accounts Receivable
	2016			2015			2016			2015
Customer A		13.2	%		22.5	%		14.2	%		23.6	%
Customer B		28.5	%		2.0	%		52.2	%		28.9	%
Customer C		10.3	%		18.7	%		5.2	%		6.4	%
Customer D		3.6	%		3.9	%		3.2	%		11.6	%

Subsequent to

December

31,

2016,

Customer B remitted payments totaling approximately

$547,000

January

2017

for a total payment of

79%

of their year-end accounts receivable balance.

The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.

+ References + Details

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Note 6 - Short-term Borrowings

12 Months Ended

Dec. 31, 2016

Debt Disclosure [Text Block]

6.	SHORT-TERM BORROWINGS

Terms and borrowings under our primary credit facility are summarized as follows:

Year ended December 31,	2016		2015
Maximum outstanding (month-end)	$	--	$	--
Outstanding at year-end		--		--
Interest rate at year-end		--		6.0	%
Average interest rate		--		6.0	%

We established a working capital credit facility with a bank in

October

2003

and in the past, renewed the line periodically with the last renewal on

June

27,

2014

with a maximum principal availability of

$1.25

million based on qualified receivables. Since we have

not

borrowed under the bank line of credit in the past

five

years and did not expect to need to do so in the foreseeable future, when the line of credit expired on

June

30,

2016,

we did not renew the bank line for an additional period.

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Note 7 - Income Taxes

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Text Block]

7.	INCOME TAXES

The income tax provision from continuing operations consists of the following:

Year ended December 31, (in thousands)	201 6		2015
Current	$	--	$	3
Total	$	--	$	3

Following is a reconciliation of estimated income taxes at the statutory rate from continuing operations to estimated tax expense (benefit) as reported:

Year ended December 31,	201 6			201 5
Statutory rate		35	%		35	%
Change in valuation allowance		(35%	)		(35%	)
Effective rate		0	%		0	%

Net deferred tax assets consist of the following at

December

31:

(in thousands)	201 6			201 5
Deferred tax assets:
Federal, state and foreign loss carryforwards	$	1,440		$	1,850
Deferred revenue		30			68
Federal and state tax credits		642			653
Other		823			(79	)
Total deferred tax asset		2,935			2,492
Less valuation allowance		(2,935	)		(2,492	)
Net deferred tax asset	$	--		$	--

Federal and state tax credits of

$642,000

included in the above table expire at various dates between

2024

and

2035.

We had a deferred tax asset of approximately

$2.9

million and

$2.5

million at

December

31,

2016

and

December

31,

2015,

respectively. The deferred tax asset has been offset by a valuation allowance in

2016

and

2015

$2.9

million and

$2.5

million, respectively, because the company believes that it is more likely than not that the amount will not be realized. No deferred taxes have been provided on temporary differences related to investments in foreign subsidiaries because these investments are considered to be permanent.

As of

December

31,

the following net operating loss carryforwards, if unused as offsets to future taxable income, will expire during the following years:

(in thousands)	201 6		201 5
2021	$	689	$	689
2022		849		849
2030		--		4
2031		--		298
Thereafter		2,578		3,445
Total	$	4,116	$	5,285

Of the net operating losses detailed above,

$1.5

million are related to net operating losses that CoreCard incurred prior to its acquisition by the company. These net operating losses are subject to Separate Return Limitation Year rules. These net operating loss carryforwards expire in years

2021

and

2022.

We have recognized tax benefits from all tax positions we have taken, and there has been no adjustment to any carry forwards (net operating loss or research and development credits) in the past

two

years. There were

unrecognized tax benefits as of

December

31,

2016

and

2015.

Our policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. There were

accrued interest or penalties associated with any unrecognized tax benefits,

nor

was any interest expense recognized during the periods presented. We have determined we have

uncertain tax positions.

We file a consolidated U.S. federal income tax return for all subsidiaries in which our ownership equals or exceeds

80%,

as well as individual subsidiary returns in various states and foreign jurisdictions.

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Note 8 - Commitments and Contingencies

12 Months Ended

Dec. 31, 2016

Legal Matters and Contingencies [Text Block]

8.	COMMITMENTS AND CONTINGENCIES

Leases

–

We have noncancellable operating leases for offices and data centers expiring at various dates through

March

2018.

Future minimum lease payments are as follows:

Year ended December 31, (in thousands)
2017	$	271
2018		64
Total minimum lease payments	$	335

The above future minimum lease payments include a total of

$274,000

payable to a related party. See Note

for further discussion.

Rental expense for leased facilities related to continuing operations amounted to

$351,000

and

$416,000

in the years ended

December

31,

2016

and

2015,

respectively.

Legal Matter

–

There are no pending or threatened legal proceedings. However, in the ordinary course of business, from time to time we

may

be involved in various pending or threatened legal actions. The litigation process is inherently uncertain and it is possible that the resolution of such matters might have a material adverse effect upon our financial condition and/or results of operations.

XML 29 R16.htm IDEA: XBRL DOCUMENT

Note 9 - Post-retirement Benefits

12 Months Ended

Dec. 31, 2016

Pension and Other Postretirement Benefits Disclosure [Text Block]

9.	POST-RETIREMENT BENEFITS

Effective

January

1992,

we adopted the Outside Directors’ Retirement Plan which provides that each non-employee director, upon resignation from the Board of Directors after reaching the age of

65,

will receive a cash payment equal to

$5,000

for each full year of service as a director of the Company (and its predecessors and successors) up to

$50,000.

The plan was terminated in

2011.

December

31,

2016

and

2015,

we have accrued

$50,000

and

$59,000,

respectively, which is included in other current liabilities in the Consolidated Balance Sheets, for future payments that were earned under the plan before it was terminated.

XML 30 R17.htm IDEA: XBRL DOCUMENT

Note 10 - Defined Contribution Plans

12 Months Ended

Dec. 31, 2016

Compensation and Employee Benefit Plans [Text Block]

10.	DEFINED CONTRIBUTION PLANS

We maintain a

401(k)

defined contribution plan covering all U.S. employees. Our matching contributions, net of forfeitures, under the plan, which are optional and based on the level of individual participant’s contributions, amounted to

$38,000

and

$36,000

2016

and

2015,

respectively.

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Note 11 - Related Party Transaction

12 Months Ended

Dec. 31, 2016

11.	RELATED PARTY TRANSACTION

100%

ownership interest in ISC Properties, LLC. We paid rent of

$210,000

and

$275,000

to ISC Properties, LLC in the years ended

December

31,

2016

and

2015,

respectively. We have determined that ISC Properties, LLC is not a variable interest entity.

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Note 12 - Stockholders' Equity

12 Months Ended

Dec. 31, 2016

Stockholders' Equity Note Disclosure [Text Block]

12.	STOCKHOLDERS’ EQUITY

We have authorized

20,000,000

shares of common stock,

$0.01

par value per share and

2,000,000

shares of special stock, of which

none

is outstanding. On

April

22,

2015,

we commenced a modified “Dutch” auction style

tender

offer to purchase for cash shares of our common stock for an aggregate purchase price of no more than

million. The

tender

offer expired

May

19,

2015.

We accepted for

tender

230,729

shares of common stock at a purchase price per share of

$3.00

for an aggregate purchase price of

$692,000.

Shares repurchased were cancelled, resulting in a decline in the number of outstanding shares at

December

31,

2015.

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

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Note 13 - Stock Option Plans

12 Months Ended

Dec. 31, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

13.	STOCK OPTION PLANS

We instituted the

2003

Incentive Stock Plan (the

“2003

Plan”) in

March

2003.

The

2003

Plan authorized the issuance of up to

450,000

options to purchase shares of common stock to officers and key employees, with vesting of such options occurring equally over a

-year time period. In

2013,

the

2003

Plan expired with

197,500

options ungranted. In

June

2015,

shareholders approved the

2015

Incentive Stock Plan (the

“2015

Plan”) which authorizes the issuance of up to

750,000

options to purchase shares of common stock to employees and key consultant and advisors. In the year ended

December

31,

2016,

30,000

options were granted to a new officer of the company under the

2015

Plan. No grants were made in

2015

under the

2015

Plan. In

August

2000,

we instituted a Non-Employee Directors’ Stock Option Plan (the “Directors Plan”) that authorized the issuance of up to

200,000

shares of common stock to non-employee directors. Upon adoption of the Directors Plan, each non-employee director was granted an option to acquire

5,000

shares. At each Annual Meeting, each director receives a grant of

4,000

options, which vest in

50%

increments on the

first

and

second

anniversary. The Directors Plan expired in

2011,

with

60,000

options ungranted. The shareholders approved a new plan, the

2011

Non-Employee Directors Stock Plan (the

“2011

Directors Plan”), in

May

2011,

with essentially the same terms and conditions as the Directors Plan. Stock options under all plans are granted at an exercise price equal to fair value on the date of grant and vest over

years. As of

December

31,

2016,

a total of

1,285,500

options under all plans have been granted,

740,320

have been exercised,

240,680

have been cancelled,

256,500

are fully vested and exercisable and

48,000

are not vested. All options expire

ten

years from their respective dates of grant.

As of

December

31,

2016,

there was

$103,000

unrecognized compensation cost related to stock options granted under the plans, which is expected to be a recognized over a weighted-average period of

2.8

years.

Stock option activity during the years ended

December

31,

2016

and

2015

was as follows:

	2016				2015
Options outstanding at January 1			274,500				274,500
Options cancelled			0				(8,000	)
Options exercised			(12,000	)			(4,000	)
Options granted			42,000				12,000
Options outstanding at December 31			304,500				274,500

Options available for grant at December 31			834,000				876,000

Options exercisable at December 31			256,500				254,500

Exercise price ranges per share:
Granted	$3.50	-	$3.89			$2.97
Exercised	$0.69	-	$1.66			$2.08
Outstanding	$0.69	-	$3.89		$0.69	-	$3.84

Weighted average exercise price per share:
Granted	$		3.78		$		2.97
Exercised	$		1.18		$		2.08
Outstanding at December 31	$		2.06		$		1.76
Exercisable at December 31	$		1.76		$		1.72

The following tables summarize information about the stock options outstanding under the company’s option plans as of

December

31,

2016.

Options Outstanding:
Range of Exercise Price			Number Outstanding		Wgt. Avg. Contractual Life Remaining (in years)	Wgt. Avg. Exercise Price		Aggregate Intrinsic Value
$0.69	-	$1.72		226,500	4.8	$	1.54	$	593,970
$2.97	-	$3.89		78,000	6.8	$	3.59	$	68,880
$0.69	-	$3.89		304,500	5.3	$	2.06	$	662,850

Options Exercisable:
Range of Exercise Price			Number Exercisable		Wgt. Avg. Contractual Life Remaining (in years)	Wgt. Avg. Exercise Price		Aggregate Intrinsic Value
$0.69	-	$1.72		226,500	4.8	$	1.54	$	566,970
$2.97	-	$3.84		30,000	2.4	$	3.45	$	68,880
$0.69	-	$3,84		256,500	4.5	$	1.76	$	635,850

Aggregate intrinsic value represents the total pre-tax intrinsic value (the difference between the company’s closing stock price on the last trading day of the year ended

December

31,

2016

and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on

December

31,

2016.

The amount of aggregate intrinsic value will change based on the fair value of the company’s common stock.

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References + Details

XML 34 R21.htm IDEA: XBRL DOCUMENT

Note 14 - Foreign Revenues and Operations

12 Months Ended

Dec. 31, 2016

Additional Financial Information Disclosure [Text Block]

14.	FOREIGN Revenues AND OPERATIONS

Foreign revenues are based on the location of the customer. Revenues from customers associated with continuing operations by geographic areas for the years ended

December

31,

2016

and

2015

are as follows:

Year ended December 31, (in thousands)	201 6		201 5
Foreign Countries:
European Union	$	2,383	$	128
Other		--		4
Subtotal		2,383		132
United States		5,795		4,650
Total	$	8,178	$	4,782

2003,

we established a subsidiary of CoreCard Software in Romania for software development and testing activities. In

2006,

we established a subsidiary in India for additional software development and testing activities as well as support for processing operations. With the exception of a facility in India which was acquired in

2007

to house our India-based employees and which had a net book value of

$183,000

and

$191,000

December

31,

2016

and

2015,

respectively, substantially all long-lived assets are in the United States.

December

31,

2016

and

2015,

continuing operations of foreign subsidiaries had assets of

$648,000

and

$501,000,

respectively, and total liabilities of

$526,000

and

$435,000,

respectively. The majority of these assets and liabilities are in India. There are no currency exchange restrictions related to our foreign subsidiaries that would affect our financial position or results of operations. Refer to Note

for a discussion regarding how we account for translation of non-U.S. currency amounts.

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Note 15 - Industry Segments

12 Months Ended

Dec. 31, 2016

Segment Reporting Disclosure [Text Block]

15.	INDUSTRY SEGMENTS

Following the sale of our ChemFree subsidiary, management considers our remaining subsidiaries, consisting of CoreCard and its affiliate companies, to be

one

operating segment. Historically, we have described this industry segment as Information Technology Products and Services but as our company and the financial software and services industries have evolved, we now consider the financial transaction solutions and services (“FinTech”) industry segment to be more appropriate.

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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XML 36 R23.htm IDEA: XBRL DOCUMENT

Note 16 - Net Income (Loss) Per Share

12 Months Ended

Dec. 31, 2016

Earnings Per Share [Text Block]

16.	Net INCOME (Loss) PER SHARE

The following tables represent required disclosure of the reconciliation of the income (loss) and the shares used in the basic and diluted income (loss) per share computation:

Year ended December 31, (in thousands, except per share data)	2016			2015
Basic
Net income (loss) attributable to Intelligent Systems Corporation	$	(1,112	)	$	18,020
Weighted average common shares outstanding		8,736			8,807
Net income (loss) per share	$	(0.13	)	$	2.05

Diluted
Net income (loss) attributable to Intelligent Systems Corporation	$	(1,112	)	$	18,020
Weighted average common shares outstanding		8,736			8,807
Effect of dilutive potential common shares: stock options		--			105
Total		8,736			8,912
Net income (loss) per share	$	(0.13	)	$	2.02

December

31,

2016

and

2015,

respectively, there were

zero

and

105,000

dilutive stock options exercisable.

XML 37 R24.htm IDEA: XBRL DOCUMENT

Note 17 - Subsequent Events

12 Months Ended

Dec. 31, 2016

Subsequent Events [Text Block]

17.	Subsequent events

December

30,

2016,

Intelligent Systems and its wholly owned subsidiary CoreCard MergerSub, Inc. entered into an Agreement and Plan of Merger with CoreCard providing for the recapitalization of CoreCard. Pursuant to the Merger Agreement, MergerSub merged with and into CoreCard on

January

2017.

As a result of the merger, we now own

100%

of the outstanding shares of CoreCard. As such, beginning in

2017,

we will no longer reduce income or losses by the amount that had been allocable in prior periods to the non-controlling common stock interest in CoreCard.

XML 38 R25.htm IDEA: XBRL DOCUMENT

Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2016

Accounting Policies [Abstract]

Consolidation, Policy [Policy Text Block]

Consolidation

Use of Estimates, Policy [Policy Text Block]

Use of Estimates

Foreign Currency Transactions and Translations Policy [Policy Text Block]

Translation of Foreign Currencies

Receivables, Policy [Policy Text Block]

Accounts Receivable and Allowance for Doubtful Accounts

December

31,

2016

is adequate. However, actual write-offs might exceed the recorded allowance. Refer to Note

Marketable Securities, Policy [Policy Text Block]

Marketable Securities

–

$418,000

December

31,

2016;

an unrealized gain of

$22,000

is included in other comprehensive loss. The fair value of the marketable securities was

$396,000

December

31,

2015;

an unrealized loss of

$68,000

was included in other comprehensive loss.

Property, Plant and Equipment, Policy [Policy Text Block]

Property and Equipment

may

warrant revision, or that the remaining balance of these assets

may

December

31,

2015,

such impairment existed. As a result of a comprehensive physical inventory at our U.S. based operations in

2016,

various assets were disposed of and the cost of the assets and related accumulated depreciation were removed from the accounts. A net loss of

$1,000

was recognized in the year ended

December

31,

2016.

Classification	Useful life in years
Machinery and equipment	3	-	5
Furniture and fixtures	5	-	7
Leasehold improvements	1	-	5
Building	39

The cost of each major class of property and equipment at

December

31,

2016

and

2015

is as follows:

(in thousands)	201 6			201 5
Machinery and equipment	$	1,696		$	2,178
Furniture and fixtures		154			197
Leasehold improvements		0			258
Building		308			308
Subtotal		2,158			2,941
Accumulated depreciation		(1,458	)		(2,305	)
Property and equipment, net	$	700		$	636

Depreciation expense for continuing operations was

$248,000

and

$217,000

2016

and

2015,

respectively. These expenses are included in general and administrative expenses or, for assets associated with our processing data centers, are included in cost of services.

Following the sale of our ChemFree subsidiary in

March

2015,

we no longer have any leased equipment or lease rental income.

Investment, Policy [Policy Text Block]

Investments

– For entities in which we have a

December

31,

2016,

we recognized

$713,000

of investment loss, net, attributable to the write-down of

$750,000

on a cost method investment which was offset in part by a gain of

$37,000

on a final payment after the escrow period on a prior minority investment sale. During the year ended

December

31,

2015,

we recognized

$1,247,000

of investment income, net, principally related to a gain of

$2,034,000

on the sale of

one

of our cost method investments which was offset in part by an impairment charge of

$792,000

to reduce the carrying value of our equity method investment to

$100,000,

management’s estimate of realizable value. At

December

31,

2016

and

2015,

the aggregate value of investments was

$1,272,000

and

$1,015,000,

respectively. We signed an agreement acquiring a

$1,000,000

investment in a privately-held technology company in the FinTech industry on

December

30,

2016.

The investment is included in the

December

31,

2016

aggregate value; however, the funding of the investment did not occur until subsequent to year end on

January

2017.

Intangible Assets, Finite-Lived, Policy [Policy Text Block]

Patents

–

Following the sale of our ChemFree subsidiary, we no longer have any undepreciated patent assets on our balance sheet and no amortization expense for continuing operations.

Fair Value of Financial Instruments, Policy [Policy Text Block]

Fair Value of Financial Instruments

–

Financial instruments that potentially subject us to concentrations of credit risk consist principally of cash and trade accounts. Our available cash is held in accounts managed by

third

-party financial institutions. Cash

may

A concentration of credit risk

may

exist with respect to trade receivables, as a substantial portion of our customers are concentrated in the financial services industry.

Fair Value Measurement, Policy [Policy Text Block]

Fair Value Measurements

–

The hierarchy is measured in

three

levels based on the reliability of inputs:

• Level

instruments.

• Level

- Valuations based on quoted prices in less active, dealer or broker markets. Fair values are primarily obtained from

third

party pricing services for identical or comparable assets or liabilities.

• Level

Our available-for-sale investments are classified within level

of the valuation hierarchy.

Revenue Recognition, Policy [Policy Text Block]

Revenue Recognition

Our software license arrangements generally fall into

one

of the following

four

categories:

●	an initial contract with the customer to license certain software modules, to provide services to get the customer live on the software (such as training and customization) and to provide post contract support (“PCS”) for a specified period of time thereafter (typically three months),

●	purchase of additional licenses for new modules or for tier upgrades for a higher volume of licensed accounts after the initial contract,

●	other optional standalone contracts, usually performed after the customer is live on the software, for services such as new interfaces or custom features requested by the customer, additional training and problem resolution not covered in annual maintenance contracts, and

●	contracts for certain licensed software products that involve an initial fee plus recurring monthly fees during the contract life.

may

Revenue is recorded net of applicable sales tax.

Revenue Recognition, Deferred Revenue [Policy Text Block]

Deferred Revenue

–

Deferred revenue consists of advance payments by software customers for annual or quarterly PCS, advance payments from customers for software licenses and professional services not yet delivered, and initial implementation payments for processing services or bundled license and support services in multi-year contracts. We do not anticipate any loss under these arrangements. Deferred revenue is classified as long-term until such time that it becomes likely that the services or products will be provided within

months of the balance sheet date.

Cost of Sales, Policy [Policy Text Block]

Cost of Revenue

third

Research, Development, and Computer Software, Policy [Policy Text Block]

Software Development Expense

Standard Product Warranty, Policy [Policy Text Block]

Warranty Costs

–The warranty related to software license contracts consists of a defined number of months (usually

three)

of PCS after the go-live date, which is accrued as of the go-live date and recognized over the warranty period.

Legal Costs, Policy [Policy Text Block]

Legal Expense

–

Legal expenses for continuing operations are recorded as a component of general and administrative expense in the period in which such expenses are incurred. In

2015,

legal expenses associated with the sale of our ChemFree subsidiary were included as a component of the transaction related expenses in determining the gain on the sale of discontinued operations.

Research and Development Expense, Policy [Policy Text Block]

Research and Development

Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]

Stock Based Compensation

December

31,

2016

and

2015

has been recognized as a component of general and administrative expenses in the accompanying Consolidated Financial Statements. We recorded

$31,000

and

$19,000

of stock-based compensation expense in the years ended

December

31,

2016

and

2015,

respectively.

In each of the years ended

December

31,

2016

and

2015,

a total of

12,000

options were granted pursuant to the

2011

Non-employee Directors Stock Option Plan. In

2016,

a total of

30,000

options were granted pursuant to the Intelligent Systems Corporation Stock Incentive Plan (the

“2015

Plan”). The fair value of each option granted in

2016

and

2015

has been estimated as of the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions:

Year ended December 31,	2016			2015
Risk free interest rate		.28	%		.27	%
Expected life of option in years		10			10
Expected dividend yield rate		0	%		0	%
Expected volatility		65	%		66	%

Under these assumptions, the weighted average fair value of options granted in

2016

and

2015

was

$2.63

and

$2.10

December

31,

2016

related to unvested options amounted to

$103,000

and is expected to be recognized from

2017

through

2019.

Income Tax, Policy [Policy Text Block]

Income Taxes

–

Comprehensive Income, Policy [Policy Text Block]

Comprehensive Income (Loss)

New Accounting Pronouncements, Policy [Policy Text Block]

Recent Accounting Pronouncements

– In

February

2016,

the FASB issued ASU

2016

– Leases (Topic

842)

December

15,

2018.

We are currently evaluating the effect on our Consolidated Financial Statements.

March

2016,

the FASB issued ASU

2016

– Revenue from Contracts with Customers (Topic

606)

related to reporting revenue gross versus net, or principal versus agent considerations. This pronouncement is meant to clarify the guidance in FASB ASU

2014

09,

December

15,

2017.

We are currently evaluating the effect on our Consolidated Financial Statements.

March

2016,

the FASB issued ASU

2016

– Compensation – Stock Compensation (Topic

718)

December

15,

2016.

We are currently evaluating the effect on our Consolidated Financial Statements.

April

2016,

the FASB issued ASU

2016

– Revenue from Contract with Customers (Topic

606)

related to identifying performance obligations and licensing. This pronouncement is meant to clarify the guidance in FASB ASU

2014

09,

December

15,

2017.

We are currently evaluating the effect on our Consolidated Financial Statements.

May

2016,

the FASB issued ASU

2016

– Revenue from Contracts with Customers (Topic

606)

related to narrow scope improvements. This pronouncement is meant to clarify the guidance in FASB ASU

2014

09,

Revenue from Contracts with Customers. The amendments in this update do not change the core principle of the guidance in Topic

606,

but rather, the amendments in this update affect certain aspects of Topic

606

December

15,

2017.

We are currently evaluating the effect on our Consolidated Financial Statements.

October

2016,

the FASB issued ASU

2016

17,

Consolidation (Topic

810):

December

15,

2016,

including interim periods within those fiscal years. Early application is permitted. We are currently evaluating the impact this guidance will have on our consolidated financial statements.

November

2016,

the FASB issued ASU

2016

18,

Statement of Cash Flows (Topic

230):

December

15,

2017.

Early application is permitted. We are currently evaluating the impact this will have on our consolidated financial statements.

January

2017,

the FASB issued ASU

2017

04,

Intangibles – Goodwill and Other (Topic

350),

which simplifies the subsequent measurement of goodwill by eliminating Step

December

15,

2019.

Early application is permitted. We do not believe the adoption of this new guidance will have a material impact on our consolidated financial statements.

February

2017,

the FASB issued ASU

2017

05,

Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic

610

20):

610

20.

810

10.

845.

The amendments in this Update also provide guidance on the accounting for what often are referred to as partial sales of nonfinancial assets within the scope of Subtopic

610

and contributions of nonfinancial assets to a joint venture or other noncontrolled investee. This guidance is effective for public entities for fiscal years beginning after

December

15,

2017,

including interim reporting periods within that reporting period. We are currently evaluating the impact this will have on our consolidated financial statements.

We have considered all other recently issued accounting pronouncements and do not believe the adoption of such pronouncements will have a material impact on our Consolidated Financial Statements.

XML 39 R26.htm IDEA: XBRL DOCUMENT

Note 1 - Organization and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]

Year ended December 31,	2016			2015
Risk free interest rate		.28	%		.27	%
Expected life of option in years		10			10
Expected dividend yield rate		0	%		0	%
Expected volatility		65	%		66	%

Components [Member]

Property, Plant and Equipment [Table Text Block]

(in thousands)	201 6			201 5
Machinery and equipment	$	1,696		$	2,178
Furniture and fixtures		154			197
Leasehold improvements		0			258
Building		308			308
Subtotal		2,158			2,941
Accumulated depreciation		(1,458	)		(2,305	)
Property and equipment, net	$	700		$	636

Useful Lives [Member]

Property, Plant and Equipment [Table Text Block]

Classification	Useful life in years
Machinery and equipment	3	-	5
Furniture and fixtures	5	-	7
Leasehold improvements	1	-	5
Building	39

XML 40 R27.htm IDEA: XBRL DOCUMENT

Note 2 - Discontinued Operations (Tables)

12 Months Ended

Dec. 31, 2016

Disposal Groups, Including Discontinued Operations [Table Text Block]

Year ended December 31 , (in thousands)	201 6		2015
Net sales		--	$	2,902
Operating income		--		197
Net income before income taxes		--		6
Income taxes		--		9
Net loss from discontinued operations		--	$	(3	)

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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XML 41 R28.htm IDEA: XBRL DOCUMENT

Note 4 - Investments (Tables)

12 Months Ended

Dec. 31, 2016

Equity Method Investments [Table Text Block]

As of and for the year ended December 31 , (in thousands)	201 6			201 5
Revenues	$	2,050		$	1,878
Operating loss		(168	)		(58	)
Net loss		(168	)		(58	)

As of and for the year ended December 31, (in thousands)	201 6		201 5
Current assets	$	107	$	133
Non-current assets		3,002		3,004
Current liabilities		400		260
Stockholders’ equity		2,709		2,877

Equity Method Investments [Member]

Equity Method Investments [Table Text Block]

	Carrying Value
At December 31, (in thousands)	201 6		201 5
NKD Enterprises, LLC	$	64	$	107

XML 42 R29.htm IDEA: XBRL DOCUMENT

Note 5 - Accounts Receivable and Customer Concentrations (Tables)

12 Months Ended

Dec. 31, 2016

Schedules of Concentration of Risk, by Risk Factor [Table Text Block]

	Revenue						Accounts Receivable
	2016			2015			2016			2015
Customer A		13.2	%		22.5	%		14.2	%		23.6	%
Customer B		28.5	%		2.0	%		52.2	%		28.9	%
Customer C		10.3	%		18.7	%		5.2	%		6.4	%
Customer D		3.6	%		3.9	%		3.2	%		11.6	%

XML 43 R30.htm IDEA: XBRL DOCUMENT

Note 6 - Short-term Borrowings (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Line of Credit Facilities [Table Text Block]

Year ended December 31,	2016		2015
Maximum outstanding (month-end)	$	--	$	--
Outstanding at year-end		--		--
Interest rate at year-end		--		6.0	%
Average interest rate		--		6.0	%

XML 44 R31.htm IDEA: XBRL DOCUMENT

Note 7 - Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

Year ended December 31, (in thousands)	201 6		2015
Current	$	--	$	3
Total	$	--	$	3

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

Year ended December 31,	201 6			201 5
Statutory rate		35	%		35	%
Change in valuation allowance		(35%	)		(35%	)
Effective rate		0	%		0	%

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

(in thousands)	201 6			201 5
Deferred tax assets:
Federal, state and foreign loss carryforwards	$	1,440		$	1,850
Deferred revenue		30			68
Federal and state tax credits		642			653
Other		823			(79	)
Total deferred tax asset		2,935			2,492
Less valuation allowance		(2,935	)		(2,492	)
Net deferred tax asset	$	--		$	--

Summary of Operating Loss Carryforwards [Table Text Block]

(in thousands)	201 6		201 5
2021	$	689	$	689
2022		849		849
2030		--		4
2031		--		298
Thereafter		2,578		3,445
Total	$	4,116	$	5,285

XML 45 R32.htm IDEA: XBRL DOCUMENT

Note 8 - Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]

Year ended December 31, (in thousands)
2017	$	271
2018		64
Total minimum lease payments	$	335

XML 46 R33.htm IDEA: XBRL DOCUMENT

Note 13 - Stock Option Plans (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]

	2016				2015
Options outstanding at January 1			274,500				274,500
Options cancelled			0				(8,000	)
Options exercised			(12,000	)			(4,000	)
Options granted			42,000				12,000
Options outstanding at December 31			304,500				274,500

Options available for grant at December 31			834,000				876,000

Options exercisable at December 31			256,500				254,500

Exercise price ranges per share:
Granted	$3.50	-	$3.89			$2.97
Exercised	$0.69	-	$1.66			$2.08
Outstanding	$0.69	-	$3.89		$0.69	-	$3.84

Weighted average exercise price per share:
Granted	$		3.78		$		2.97
Exercised	$		1.18		$		2.08
Outstanding at December 31	$		2.06		$		1.76
Exercisable at December 31	$		1.76		$		1.72

Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block]

Options Outstanding:
Range of Exercise Price			Number Outstanding		Wgt. Avg. Contractual Life Remaining (in years)	Wgt. Avg. Exercise Price		Aggregate Intrinsic Value
$0.69	-	$1.72		226,500	4.8	$	1.54	$	593,970
$2.97	-	$3.89		78,000	6.8	$	3.59	$	68,880
$0.69	-	$3.89		304,500	5.3	$	2.06	$	662,850

Exercisable [Member]

Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block]

Options Exercisable:
Range of Exercise Price			Number Exercisable		Wgt. Avg. Contractual Life Remaining (in years)	Wgt. Avg. Exercise Price		Aggregate Intrinsic Value
$0.69	-	$1.72		226,500	4.8	$	1.54	$	566,970
$2.97	-	$3.84		30,000	2.4	$	3.45	$	68,880
$0.69	-	$3,84		256,500	4.5	$	1.76	$	635,850

XML 47 R34.htm IDEA: XBRL DOCUMENT

Note 14 - Foreign Revenues and Operations (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block]

Year ended December 31, (in thousands)	201 6		201 5
Foreign Countries:
European Union	$	2,383	$	128
Other		--		4
Subtotal		2,383		132
United States		5,795		4,650
Total	$	8,178	$	4,782

XML 48 R35.htm IDEA: XBRL DOCUMENT

Note 16 - Net Income (Loss) Per Share (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

Year ended December 31, (in thousands, except per share data)	2016			2015
Basic
Net income (loss) attributable to Intelligent Systems Corporation	$	(1,112	)	$	18,020
Weighted average common shares outstanding		8,736			8,807
Net income (loss) per share	$	(0.13	)	$	2.05

Diluted
Net income (loss) attributable to Intelligent Systems Corporation	$	(1,112	)	$	18,020
Weighted average common shares outstanding		8,736			8,807
Effect of dilutive potential common shares: stock options		--			105
Total		8,736			8,912
Net income (loss) per share	$	(0.13	)	$	2.02

XML 49 R36.htm IDEA: XBRL DOCUMENT

Note 1 - Organization and Summary of Significant Accounting Policies (Details Textual) - USD ($)		12 Months Ended		168 Months Ended
	Dec. 30, 2016	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016
Marketable Securities		$ 418,000	$ 396,000	$ 418,000
Marketable Securities, Unrealized Gain (Loss)		22,000	68,000
Tangible Asset Impairment Charges			0
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property		1,000
Loss on Sale of Investments		713,000
Cost-method Investments, Other than Temporary Impairment		750,000
Cost-method Investments, Realized Gain (Loss), Excluding Other than Temporary Impairments		37,000	2,034,000
Gain on Sale of Investments			1,247,000
Equity Method Investment, Other than Temporary Impairment			792,000
Equity Method Investments			100,000
Cost Method Investments		1,272,000	1,015,000	$ 1,272,000
Investments, Unfunded Commitments		1,000,000
Allocated Share-based Compensation Expense		$ 31,000	$ 19,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross		42,000	12,000	1,285,500
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized		$ 103,000		$ 103,000
The 2011 Non-employee Director Stock Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross		30,000	12,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value		$ 2.63	$ 2.10
Privately-held Technology Company [Member]
Investments, Unfunded Commitments	$ 1,000,000
General and Administrative Expense [Member]
Depreciation		$ 248,000	$ 217,000

XML 50 R37.htm IDEA: XBRL DOCUMENT

Note 1 - Organization and Summary of Significant Accounting Policies - Property and Equipment - Useful Lives (Details)	12 Months Ended
	Dec. 31, 2016
Building [Member]
Useful life (Year)	39 years
Minimum [Member] \| Machinery and Equipment [Member]
Useful life (Year)	3 years
Minimum [Member] \| Furniture and Fixtures [Member]
Useful life (Year)	5 years
Minimum [Member] \| Leasehold Improvements [Member]
Useful life (Year)	1 year
Maximum [Member] \| Machinery and Equipment [Member]
Useful life (Year)	5 years
Maximum [Member] \| Furniture and Fixtures [Member]
Useful life (Year)	7 years
Maximum [Member] \| Leasehold Improvements [Member]
Useful life (Year)	5 years

XML 51 R38.htm IDEA: XBRL DOCUMENT

Note 1 - Organization and Summary of Significant Accounting Policies - Property and Equipment - Components (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Property and equipment	$ 2,158	$ 2,941
Accumulated depreciation	(1,458)	(2,305)
Property and equipment, net	700	636
Machinery and Equipment [Member]
Property and equipment	1,696	2,178
Furniture and Fixtures [Member]
Property and equipment	154	197
Leasehold Improvements [Member]
Property and equipment	0	258
Building [Member]
Property and equipment	$ 308	$ 308

XML 52 R39.htm IDEA: XBRL DOCUMENT

Note 1 - Organization and Summary of Significant Accounting Policies - Stock-Based Compensation - Weighted Average Assumptions (Details)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Risk free interest rate	0.28%	0.27%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term	10 years	10 years
Expected dividend yield rate	0.00%	0.00%
Expected volatility	65.00%	66.00%

XML 53 R40.htm IDEA: XBRL DOCUMENT

Note 2 - Discontinued Operations (Details Textual) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax			$ 18,802,000
Restricted Cash and Cash Equivalents, Current			2,200,000
Disposal Group Including Discontinued Operation, Working Capital Adjustment			220,000
Disposal Group, Including Discontinued Operation, Liabilities, Current			120,000
Chem Free [Member] \| Discontinued Operations, Disposed of by Sale [Member]
Disposal Group, Including Discontinued Operation, Consideration	$ 21,600,000
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax	18,746,000		18,802,000
Discontinued Operation, Tax Effect of Gain (Loss) from Disposal of Discontinued Operation			56,000
Disposal Group, Including Discontinued Operation, Deferred Tax Liabilities			120,000
Increase in Restricted Cash	$ 3,300,000
Restricted Cash and Cash Equivalents, Current			2,200,000
Disposal Group, Including Discontinued Operation, Liabilities, Current			120,000
Chem Free [Member] \| Discontinued Operations, Disposed of by Sale [Member] \| Restricted Cash and Cash Equivalents after Working Capital Adjustment [Member]
Restricted Cash and Cash Equivalents, Current			$ 880,000

XML 54 R41.htm IDEA: XBRL DOCUMENT

Note 2 - Discontinued Operations - Condensed Financial Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Net loss from discontinued operations		$ (3)
Chem Free [Member] \| Discontinued Operations, Disposed of by Sale [Member]
Net sales		2,902
Operating income		197
Net income before income taxes		6
Income taxes		9
Net loss from discontinued operations		$ (3)

XML 55 R42.htm IDEA: XBRL DOCUMENT

Note 3 - Option Agreement (Details Textual) $ / item in Millions	12 Months Ended
	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Dec. 31, 2012 USD ($)	Mar. 20, 2012 $ / item
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners				5.00%
Noncontrolling Interest, Ownership Percentage by Parent	100.00%			96.00%
Increase In Shares Covered By Option				10.00%
Open Option Contracts Written, Exercise Price \| $ / item				1
Marketing Expense	$ 350,000	$ 242,000
Other Liabilities, Noncurrent	18,000	18,000
Option Expense [Member]
Marketing Expense			$ 18,000
Other Liabilities, Noncurrent	$ 18,000	$ 18,000

XML 56 R43.htm IDEA: XBRL DOCUMENT

Note 4 - Investments (Details Textual)			1 Months Ended		3 Months Ended			12 Months Ended
Note 4 - Investments (Details Textual)	Dec. 30, 2016 USD ($)	Dec. 23, 2015	Jan. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Jun. 30, 2016 USD ($)	Mar. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Equity Method Investment, Other than Temporary Impairment									$ 792,000
Number of Investee Companies		1
Cost-method Investments, Realized Gain (Loss), Excluding Other than Temporary Impairments								$ 37,000	2,034,000
Cost Method Investments				$ 1,015,000			$ 1,015,000	1,272,000	1,015,000
Cost-method Investments, Other than Temporary Impairment								750,000
Investments, Unfunded Commitments								$ 1,000,000
Lumense Inc. [Member]
Cost Method Investments					$ 0	$ 50,000
Cost-method Investments, Other than Temporary Impairment					$ 50,000	$ 700,000
Privately-held Technology Company [Member]
Investments, Unfunded Commitments	$ 1,000,000
Investment, Unfunded Commitments, to Be Held in Escrow	$ 500,000
NKD Enterprises LLC [Member]
Equity Method Investment, Ownership Percentage				25.50%			25.50%	25.50%	25.50%
Equity Method Investment, Other than Temporary Impairment				$ 792,000
Lancope, Inc. [Member]
Cost-method Investments, Realized Gain (Loss), Excluding Other than Temporary Impairments							$ 2,034,000
Cost Method Investments				214,000			214,000		$ 214,000
Proceeds from Sale of Other Investments			$ 2,248,000
Held Escrow Period									1 year 180 days
Estimated Portion of Escrow				$ 390,000			$ 390,000		$ 390,000

XML 57 R44.htm IDEA: XBRL DOCUMENT

Note 4 - Investments - NKD Enterprises, LLC (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Equity Method Investments		$ 100,000
NKD Enterprises LLC [Member]
Equity Method Investments	$ 64,000	$ 107,000

XML 58 R45.htm IDEA: XBRL DOCUMENT

Note 4 - Investments - Unaudited Summarized Financial Information for NKD Enterprises, LLC - Operations (Details) - NKD Enterprises LLC [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Revenues	$ 2,050	$ 1,878
Operating loss	(168)	(58)
Net loss	(168)	(58)
Current assets	107	133
Non-current assets	3,002	3,004
Current liabilities	400	260
Stockholders’ equity	$ 2,709	$ 2,877

XML 59 R46.htm IDEA: XBRL DOCUMENT

Note 5 - Accounts Receivable and Customer Concentrations (Details Textual) - USD ($)	1 Months Ended	12 Months Ended
	Jan. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Allowance for Doubtful Accounts Receivable, Current		$ 15,000	$ 0
Allowance for Loan and Lease Losses, Write-offs		0	$ 0
Percentage Of Consolidated Revenue			10.00%
Increase (Decrease) in Accounts Receivable		$ 367,000	$ 461,000
Customer B [Member] \| Subsequent Event [Member]
Increase (Decrease) in Accounts Receivable	$ (547,000)
Accounts Receivable, Amount of Year-end Balance Paid, Percentage	79.00%

XML 60 R47.htm IDEA: XBRL DOCUMENT

Note 5 - Accounts Receivable and Customer Concentrations - Concentration of Revenue (Details) - Customer Concentration Risk [Member]	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Customer A [Member] \| Sales Revenue, Net [Member]
Concentration risk	13.20%	22.50%
Customer A [Member] \| Accounts Receivable [Member]
Concentration risk	14.20%	23.60%
Customer B [Member] \| Sales Revenue, Net [Member]
Concentration risk	28.50%	2.00%
Customer B [Member] \| Accounts Receivable [Member]
Concentration risk	52.20%	28.90%
Customer C [Member] \| Sales Revenue, Net [Member]
Concentration risk	10.30%	18.70%
Customer C [Member] \| Accounts Receivable [Member]
Concentration risk	5.20%	6.40%
Customer D [Member] \| Sales Revenue, Net [Member]
Concentration risk	3.60%	3.90%
Customer D [Member] \| Accounts Receivable [Member]
Concentration risk	3.20%	11.60%

XML 61 R48.htm IDEA: XBRL DOCUMENT

Note 6 - Short-term Borrowings (Details Textual) - Revolving Credit Facility [Member]	Dec. 31, 2016 USD ($)
Line of Credit Facility, Maximum Borrowing Capacity	$ 1,250,000
Long-term Line of Credit	$ 0

The carrying value as of the balance sheet date of the current and noncurrent portions of long-term obligations drawn from a line of credit, which is a bank's commitment to make loans up to a specific amount. Examples of items that might be included in the application of this element may consist of letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to a maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line. Includes short-term obligations that would normally be classified as current liabilities but for which (a) postbalance sheet date issuance of a long term obligation to refinance the short term obligation on a long term basis, or (b) the enterprise has entered into a financing agreement that clearly permits the enterprise to refinance the short-term obligation on a long term basis and the following conditions are met (1) the agreement does not expire within 1 year and is not cancelable by the lender except for violation of an objectively determinable provision, (2) no violation exists at the BS date, and (3) the lender has entered into the financing agreement is expected to be financially capable of honoring the agreement.

+ References + Details

XML 62 R49.htm IDEA: XBRL DOCUMENT

Note 6 - Short-term Borrowings - Credit Facility Terms and Borrowings (Details)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Interest rate at year-end		6.00%
Average interest rate		6.00%

XML 63 R50.htm IDEA: XBRL DOCUMENT

Note 7 - Income Taxes (Details Textual) - USD ($)	12 Months Ended
Note 7 - Income Taxes (Details Textual) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Deferred Tax Assets, Tax Credit Carryforwards	$ 642,000	$ 653,000
Deferred Tax Assets, Gross	2,935,000	2,492,000
Deferred Tax Assets, Valuation Allowance	2,935,000	2,492,000
Operating Loss Carryforwards	4,116,000	5,285,000
Unrecognized Tax Benefits	0	0
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued	0	0
Unrecognized Tax Benefits, Interest on Income Taxes Expense	0	0
Unrecognized Tax Benefits, Income Tax Penalties Expense	0	$ 0
Prior To Their Acquisition By The Company [Member]
Operating Loss Carryforwards	$ 1,500,000

XML 64 R51.htm IDEA: XBRL DOCUMENT

Note 7 - Income Taxes - Income Tax Provision from Continuing Operations (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Current		$ 3
Total		$ 3

XML 65 R52.htm IDEA: XBRL DOCUMENT

Note 7 - Income Taxes - Reconciliation of Income Taxes Rates (Details)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Statutory rate	35.00%	35.00%
Change in valuation allowance	(35.00%)	(35.00%)
Effective rate	0.00%	0.00%

XML 66 R53.htm IDEA: XBRL DOCUMENT

Note 7 - Income Taxes - Net Deferred Tax Assets (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Federal, state and foreign loss carryforwards	$ 1,440,000	$ 1,850,000
Deferred revenue	30,000	68,000
Deferred Tax Assets, Tax Credit Carryforwards	642,000	653,000
Other	823,000	(79,000)
Total deferred tax asset	2,935,000	2,492,000
Less valuation allowance	(2,935,000)	(2,492,000)
Net deferred tax asset

XML 67 R54.htm IDEA: XBRL DOCUMENT

Note 7 - Income Taxes - Net Operating Loss Carryforwards (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Operating Loss Carryforwards	$ 4,116	$ 5,285
Operating Loss Carryforward Expiring in 2021 [Member]
Operating Loss Carryforwards	689	689
Operating Loss Carryforward Expiring in 2022 [Member]
Operating Loss Carryforwards	849	849
Operating Loss Carryforward Expiring in 2030 [Member]
Operating Loss Carryforwards		4
Operating Loss Carryforward Expiring in 2031 [Member]
Operating Loss Carryforwards		298
Operating Loss Carryforward Expiring Thereafter [Member]
Operating Loss Carryforwards	$ 2,578	$ 3,445

XML 68 R55.htm IDEA: XBRL DOCUMENT

Note 8 - Commitments and Contingencies (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Due to Related Parties	$ 274,000
Operating Leases, Rent Expense	$ 351,000	$ 416,000

XML 69 R56.htm IDEA: XBRL DOCUMENT

Note 8 - Commitments and Contingencies - Future Minimum Lease Payments (Details) $ in Thousands	Dec. 31, 2016 USD ($)
2017	$ 271
2018	64
Total minimum lease payments	$ 335

XML 70 R57.htm IDEA: XBRL DOCUMENT

Note 9 - Post-retirement Benefits (Details Textual)	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Retirement Plan Minimum Age	65
Retirement Plan Lump Sum Cash Payment Per Year	$ 5,000
Retirement Plan Lump Sum Cash Payment Maximum	50,000
Retirement Plan Lump Sum Cash Payment Accrual	$ 50,000	$ 59,000

XML 71 R58.htm IDEA: XBRL DOCUMENT

Note 10 - Defined Contribution Plans (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Defined Contribution Plan, Employer Discretionary Contribution Amount	$ 38,000	$ 36,000

XML 72 R59.htm IDEA: XBRL DOCUMENT

Note 11 - Related Party Transaction (Details Textual) - ISC Properties LLC [Member] - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Related Party Transaction, Expenses from Transactions with Related Party	$ 210,000	$ 275,000
Chief Executive Officer [Member]
Related Party Ownership Percentage		100.00%

XML 73 R60.htm IDEA: XBRL DOCUMENT

Note 12 - Stockholders' Equity (Details Textual) - USD ($)		12 Months Ended
	Apr. 22, 2015	Dec. 31, 2016	Dec. 31, 2015
Common Stock, Shares Authorized		20,000,000	20,000,000
Common Stock, Par or Stated Value Per Share		$ 0.01	$ 0.01
Special Stock Shares Authorized		2,000,000
Stock Repurchase Program, Authorized Amount	$ 5,000,000
Stock Repurchased and Retired During Period, Shares	230,729		230,729
Stock Repurchased and Retired During Period, Price Per Share	$ 3
Stock Repurchased and Retired During Period, Value	$ 692,000
Special Stock Shares Outstanding		$ 0

XML 74 R61.htm IDEA: XBRL DOCUMENT

Note 13 - Stock Option Plans (Details Textual) - USD ($)	1 Months Ended	6 Months Ended	12 Months Ended		168 Months Ended
	Aug. 31, 2000	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Jun. 30, 2015	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross			42,000	12,000	1,285,500
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period			12,000	4,000	740,320
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period			0	8,000	240,680
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number		254,500	256,500	254,500	256,500
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number			48,000		48,000
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term			10 years	10 years
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized			$ 103,000		$ 103,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition			2 years 292 days
Minimum [Member] \| Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period				2 years
Maximum [Member] \| Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period				3 years
The 2003 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized		450,000		450,000
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period				3 years
Sharebased Compensation Arrangement By Sharebased Payment Award Number Of Options Ungranted							197,500
The 2015 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized						750,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross		0	30,000
The Directors Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	200,000
Sharebased Compensation Arrangement By Sharebased Payment Award Number Of Options Ungranted	60,000
Number Of Options Each Director Received At Each Annual Meeting	4,000
Options Vesting Percentage On First And Second Anniversary	50.00%
The Directors Plan [Member] \| Director [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	5,000

XML 75 R62.htm IDEA: XBRL DOCUMENT

Note 13 - Stock Option Plans - Stock Option Activity (Details)	12 Months Ended		168 Months Ended
	Dec. 31, 2016 $ / shares shares	Dec. 31, 2015 $ / shares shares	Dec. 31, 2016 $ / shares shares
Options outstanding at January 1 (in shares) \| shares	274,500	274,500
Options cancelled (in shares) \| shares	0	(8,000)	(240,680)
Options exercised (in shares) \| shares	(12,000)	(4,000)	(740,320)
Options granted (in shares) \| shares	42,000	12,000	1,285,500
Options outstanding at December 31 (in shares) \| shares	304,500	274,500	304,500
Options available for grant at December 31 (in shares) \| shares	834,000	876,000	834,000
Options exercisable at December 31 (in shares) \| shares	256,500	254,500	256,500
Granted (in dollars per share)	$ 3.78	$ 2.97
Exercised (in dollars per share)	1.18	2.08
Outstanding (in dollars per share)	2.06	1.76	$ 2.06
Exercisable at December 31 (in dollars per share)	1.76	1.72	1.76
Minimum [Member]
Granted (in dollars per share)	3.50
Exercised (in dollars per share)	0.69
Outstanding (in dollars per share)	0.69	0.69	0.69
Maximum [Member]
Granted (in dollars per share)	3.89
Exercised (in dollars per share)	1.66
Outstanding (in dollars per share)	$ 3.89	$ 3.84	$ 3.89

XML 76 R63.htm IDEA: XBRL DOCUMENT

Note 13 - Stock Option Plans - Stock Options Outstanding (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Number Outstanding (in Shares) (in shares)	304,500	274,500	274,500
Options Outstanding Exercise Price Range1 [Member]
Lower Range of Exercise Price (in dollars per share)	$ 0.69
Upper Range of Exercise Price (in dollars per share)	$ 1.72
Number Outstanding (in Shares) (in shares)	226,500
Wgt. Avg. Contractual Life Remaining (yrs) (Year)	4 years 292 days
Wgt. Avg. Exercise Price (in dollars per share)	$ 1.54
Aggregate Intrinsic Value (in Dollars)	$ 593,970
Options Outstanding Exercise Price Range2 [Member]
Lower Range of Exercise Price (in dollars per share)	$ 2.97
Upper Range of Exercise Price (in dollars per share)	$ 3.89
Number Outstanding (in Shares) (in shares)	78,000
Wgt. Avg. Contractual Life Remaining (yrs) (Year)	6 years 292 days
Wgt. Avg. Exercise Price (in dollars per share)	$ 3.59
Aggregate Intrinsic Value (in Dollars)	$ 68,880
Options Outstanding Exercise Price Range 3 [Member]
Lower Range of Exercise Price (in dollars per share)	$ 0.69
Upper Range of Exercise Price (in dollars per share)	$ 3.89
Number Outstanding (in Shares) (in shares)	304,500
Wgt. Avg. Contractual Life Remaining (yrs) (Year)	5 years 109 days
Wgt. Avg. Exercise Price (in dollars per share)	$ 2.06
Aggregate Intrinsic Value (in Dollars)	$ 662,850

XML 77 R64.htm IDEA: XBRL DOCUMENT

Note 13 - Stock Option Plans - Stock Options Exercisable (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Number Outstanding (in Shares) (in shares)	304,500	274,500	274,500
Options Exercisable Exercise Price Range 1 [Member]
Lower Range of Exercise Price (in dollars per share)	$ 0.69
Upper Range of Exercise Price (in dollars per share)	$ 1.72
Number Outstanding (in Shares) (in shares)	226,500
Wgt. Avg. Contractual Life Remaining (yrs) (Year)	4 years 292 days
Wgt. Avg. Exercise Price (in dollars per share)	$ 1.54
Aggregate Intrinsic Value (in Dollars)	$ 566,970
Options Exercisable Exercise Price Range 2 [Member]
Lower Range of Exercise Price (in dollars per share)	$ 2.97
Upper Range of Exercise Price (in dollars per share)	$ 3.84
Number Outstanding (in Shares) (in shares)	30,000
Wgt. Avg. Contractual Life Remaining (yrs) (Year)	2 years 146 days
Wgt. Avg. Exercise Price (in dollars per share)	$ 3.45
Aggregate Intrinsic Value (in Dollars)	$ 68,880
Options Exercisable Exercise Price Range3 [Member]
Lower Range of Exercise Price (in dollars per share)	$ 0.69
Upper Range of Exercise Price (in dollars per share)	$ 384
Number Outstanding (in Shares) (in shares)	256,500
Wgt. Avg. Contractual Life Remaining (yrs) (Year)	4 years 182 days
Wgt. Avg. Exercise Price (in dollars per share)	$ 1.76
Aggregate Intrinsic Value (in Dollars)	$ 635,850

XML 78 R65.htm IDEA: XBRL DOCUMENT

Note 14 - Foreign Revenues and Operations (Details Textual) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Assets	$ 22,704,000	$ 26,173,000
INDIA
Assets, Noncurrent	183,000	191,000
Foreign [Member]
Assets	648,000	501,000
Liabilities	$ 526,000	$ 435,000

Sum of the carrying amounts as of the balance sheet date of all assets that are expected to be realized in cash, sold or consumed after one year or beyond the normal operating cycle, if longer.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(14))
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(10))
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(12))
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(15))
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(11))
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(13))
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(17))
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(16))
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682