Note 1 - Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

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

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis

of

Presentation

Throughout this report, the terms “we”, “us”, “ours”, “ISC” and “company” refer to Intelligent Systems Corporation, including its wholly-owned and majority-owned subsidiaries. The unaudited Consolidated Financial Statements presented in this Form

10

-Q have been prepared in accordance with accounting principles generally accepted in the United States applicable to interim financial statements. Accordingly, they do

not

include all of the information and notes required for complete financial statements. In the opinion of ISC management, these Consolidated Financial Statements contain all adjustments (which comprise only normal and recurring accruals) necessary to present fairly the financial position and results of operations as of and for the

three

month periods ended

March 31, 2020

and

2019.

The interim results for the

three

months ended

March 31, 2020

are

not

necessarily indicative of the results to be expected for the full year. These statements should be read in conjunction with our Consolidated Financial Statements and notes thereto for the fiscal year ended

December 31, 2019,

as filed in our Annual Report on Form

10

-K.

There have been

no

material changes in the Company’s significant accounting policies in the

first

quarter of

2020,

as compared to the significant accounting policies described in the Company’s Annual Report on Form

10

-K for the year ended

December 31, 2019.

Recent

Accounting Pronouncements

Not

Yet

Adopted

In

June 2016,

the FASB issued ASU

No.

2016

-

13,

Measurement of Credit Losses on Financial Instruments, to require financial assets carried at amortized cost to be presented at the net amount expected to be collected based on historical experience, current conditions and forecasts. Subsequently, the FASB issued ASU

No.

2018

-

19,

Codification Improvements to Topic

326,

to clarify that receivables arising from operating leases are within the scope of lease accounting standards. Further, the FASB issued ASU

No.

2019

-

04,

ASU

No.

2019

-

05,

ASU

2019

-

10

and ASU

2019

-

11

to provide additional guidance on the credit losses standard. The ASUs are effective for interim and annual periods beginning after

December 15, 2022,

with early adoption permitted. Adoption of the ASUs is on a modified retrospective basis. We plan to adopt the ASUs on

January 1, 2023.

The ASUs are currently

not

expected to have a material impact 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.