XML 40 R27.htm IDEA: XBRL DOCUMENT v3.19.1
Summary of Significant Accounting Policies (Tables)
12 Months Ended
Dec. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Intangible Assets and Goodwill
The gross carrying amount and accumulated amortization of goodwill and other intangible assets as of December 31, 2018 and 2017 are as follows: 
 
 
December 31, 2018
 
December 31, 2017
Goodwill
 
$
4,150,339

 
$
4,150,339

Other intangible assets:
 
 

 
 

Gross carrying amount
 
$
3,891,241

 
$
3,816,402

Accumulated amortization
 
(3,799,907
)
 
(3,674,771
)
Net carrying amount
 
$
91,334

 
$
141,631

Summary of Software Development Costs
The gross carrying amount and accumulated amortization of software development costs as of December 31, 2018 and 2017 are as follows:
 
 
December 31, 2018
 
December 31, 2017
Software development costs:
 
 
 
 
Gross carrying amount
 
$
2,950,132

 
$
2,917,215

Accumulated amortization
 
(2,861,363
)
 
(2,637,801
)
Software development costs, net
 
$
88,769

 
$
279,414

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]
The following represents the common stock equivalents that were excluded from the computation of diluted shares outstanding because their effect would have been anti-dilutive for the years ended December 31, 2018 and 2017:
 
 
Year Ended December 31,
 
 
2018
 
2017
Stock options, warrants and restricted stock
 
2,997,330

 
16,434,296

Series A redeemable convertible preferred stock
 
8,781,516

 
8,781,516

Total anti-dilutive common stock equivalents
 
11,778,846

 
25,215,812

Computation of Earnings Per Share
The following represents a reconciliation of the numerators and denominators of the basic and diluted EPS computation:
 
 
Year Ended December 31,
 
 
2018
 
2017
Numerator:




Net income (loss)

$
(906,714
)
 
$
1,052,401

Effects of Series A redeemable convertible preferred stock:

 
 
 
Less: Accrual of Series A redeemable convertible preferred stock dividends

1,035,977

 
873,043

Less: Accretion to redemption value of Series A redeemable convertible preferred stock

254,212

 

Less: Deemed dividend on Series A redeemable convertible preferred stock
 
$
2,269,042

 
$

Net income (loss) attributable to common stockholders

$
(4,465,945
)
 
$
179,358

 

 
 
 
Denominator:

 
 
 
Weighted average basic shares outstanding

93,330,146

 
44,413,061

Effect of dilutive securities:

 
 
 
Stock options, warrants and restricted stock


 
2,586,266

Series A redeemable convertible preferred stock


 

Weighted average diluted shares outstanding

93,330,146

 
46,999,327

 

 
 
 
EPS:

 
 
 
Basic net income (loss) per share attributable to common stockholders

$
(0.05
)
 
$

Diluted net income (loss) per share attributable to common stockholders

$
(0.05
)
 
$

Impact on the Balance Sheet from Adopting Revenue Recognition Standard
Following is a summary of the impact to the Company’s current financial results from adopting the new revenue recognition standard:

Statements of Operations
Under Previous Guidance
New Revenue Standard Adjustment
Under Current Accounting Guidance
Year Ended December 31, 2018
 
 
 
Product revenue
9,250,082

(3,483,550
)
5,766,532

Support and services revenue
12,071,374


12,071,374

Selling and marketing
4,461,572

(7,875
)
4,453,697

Income tax expense (benefit)
233,288


233,288

Net income (loss)
2,568,961

(3,475,675
)
(906,714
)
Net loss attributable to common stockholders
(990,270
)
(3,475,675
)
(4,465,945
)
Basic net loss per share attributable to common stockholders
(0.01
)
(0.04
)
(0.05
)
Diluted net loss per share attributable to common stockholders
(0.01
)
(0.04
)
(0.05
)


Balance Sheets
Under Previous Guidance
New Revenue Standard Adjustment
Under Current Accounting Guidance
December 31, 2018
 
 
 
Prepaid expenses and other current assets
1,488,171

421,675

1,909,846

Contract assets, net, current

637,179

637,179

Contract assets, net, long-term

516,643

516,643

Deferred revenue, net, current
8,735,622

(1,876,030
)
6,859,592

Deferred tax liabilities, net
297,890


297,890

Deferred revenue, net, long-term
4,510,331

(2,003,433
)
2,506,898

Accumulated deficit
(128,362,754
)
5,454,960

(122,907,794
)