Organization, Consolidation and Presentation of Financial Statements	9 Months Ended
Sep. 30, 2015
Organization, Consolidation and Presentation of Financial Statements:
Basis of Accounting	1. BASIS OF PRESENTATION The consolidated financial statements at September 30, 2015 and for the nine month periods ended September 2015 and 2014 of Astea International Inc. and subsidiaries (“Astea” or the "Company") are unaudited and reflect all adjustments (consisting only of normal recurring adjustments) which are, in the opinion of management, necessary for a fair presentation of the financial position and operating results for the interim periods. The following unaudited financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and note disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles have been omitted pursuant to the rules and regulations of the SEC for quarterly reports on Form 10-Q. It is suggested that these financial statements be read in conjunction with the financial statements and the notes thereto, included in the Company’s latest annual report (Form 10-K) and our Form 10-Q’s for the quarters ended June 30, 2014, September 30, 2014, March 31, 2015 and June 30, 2015. The interim financial information presented is not necessarily indicative of results expected for the entire year ending December 31, 2015.
Reclassification, Policy	Reclassification Certain reclassifications to the statement of operations, related to subscription revenues, were made to prior period financial statements to conform to the current presentation.
Nature of Operations	Operating Matters and Liquidity The Company has a history of net losses. In the nine months ended September 30, 2015, the Company generated a net loss of $2,381,000 compared to a net loss of $2,808,000 generated in the same period in 2014. Further, at September 30, 2015, the Company had a working capital ratio of .70:1, with cash and cash equivalents and investments available for sale of $1,330,000. Moreover, the Company expects to continue to incur additional operating expenses for research and development and invest in software development costs to achieve its projected revenue growth. We continually evaluate our operating cash flows which can vary subject to the actual timing of expected new sales compared to our expectations of those sales and are sensitive to many factors, including changes in working capital and our net loss. The Company believes that it has sufficient cash to meet its anticipated operating cash needs for at least the next 12 months. However, projections of future cash needs and cash flows are subject to substantial uncertainty. Because the Company added a subscription-based software delivery model, it was determined that the Company needed additional liquidity. Accordingly, in 2014, the Company entered into a new line of credit agreement, and has an existing line of credit from its Chief Executive Officer, both of which are described in Note 6. As of September 30, 2015 the Company did not owe anything against the line of credit from its Chief Executive Officer and $1,426,000 against the line of credit from Silicon Valley Bank (“SVB”). The availability under the SVB line of credit is tied to a borrowing base formula that is based on 80% of the Company’s eligible domestic accounts receivable. As of September 30, 2015, the availability under the line of credit was $574,000. The CEO has committed to support the Company financially for up to $1,000,000 through April 1, 2016. The Company has projected revenues for 2015 and 2016 that management believes will provide sufficient funds to sustain its continuing operations for at least the next twelve months. The Company was in compliance with the covenants for both lines of credit with the Chief Executive Officer and SVB as of September 30, 2015. In the event the Company does not meet its financial covenants in 2015 and SVB does not extend a waiver or forbearance agreement and the Company believes that it does not have adequate liquidity to operate, if necessary, the Company will implement a cost cutting plan that reduces all its expenditures to the appropriate level that matches its operating cash flows. The Company does not plan any significant capital expenditures in 2015 other than to replace its existing capital equipment as it becomes obsolete. The Company’s plans for investment in product development are expected to be similar to prior years.

Organization, Consolidation and Presentation of Financial Statements

9 Months Ended

Sep. 30, 2015

Organization, Consolidation and Presentation of Financial Statements:

1. BASIS OF PRESENTATION

The consolidated financial statements at September 30, 2015 and for the nine month periods ended September 2015 and 2014 of Astea International Inc. and subsidiaries (“Astea” or the "Company") are unaudited and reflect all adjustments (consisting only of normal recurring adjustments) which are, in the opinion of management, necessary for a fair presentation of the financial position and operating results for the interim periods. The following unaudited financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and note disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles have been omitted pursuant to the rules and regulations of the SEC for quarterly reports on Form 10-Q. It is suggested that these financial statements be read in conjunction with the financial statements and the notes thereto, included in the Company’s latest annual report (Form 10-K) and our Form 10-Q’s for the quarters ended June 30, 2014, September 30, 2014, March 31, 2015 and June 30, 2015. The interim financial information presented is not necessarily indicative of results expected for the entire year ending December 31, 2015.

Reclassification, Policy

Reclassification

Certain reclassifications to the statement of operations, related to subscription revenues, were made to prior period financial statements to conform to the current presentation.

Nature of Operations

Operating Matters and Liquidity

The Company has a history of net losses. In the nine months ended September 30, 2015, the Company generated a net loss of $2,381,000 compared to a net loss of $2,808,000 generated in the same period in 2014. Further, at September 30, 2015, the Company had a working capital ratio of .70:1, with cash and cash equivalents and investments available for sale of $1,330,000. Moreover, the Company expects to continue to incur additional operating expenses for research and development and invest in software development costs to achieve its projected revenue growth. We continually evaluate our operating cash flows which can vary subject to the actual timing of expected new sales compared to our expectations of those sales and are sensitive to many factors, including changes in working capital and our net loss. The Company believes that it has sufficient cash to meet its anticipated operating cash needs for at least the next 12 months. However, projections of future cash needs and cash flows are subject to substantial uncertainty. Because the Company added a subscription-based software delivery model, it was determined that the Company needed additional liquidity. Accordingly, in 2014, the Company entered into a new line of credit agreement, and has an existing line of credit from its Chief Executive Officer, both of which are described in Note 6. As of September 30, 2015 the Company did not owe anything against the line of credit from its Chief Executive Officer and $1,426,000 against the line of credit from Silicon Valley Bank (“SVB”). The availability under the SVB line of credit is tied to a borrowing base formula that is based on 80% of the Company’s eligible domestic accounts receivable. As of September 30, 2015, the availability under the line of credit was $574,000. The CEO has committed to support the Company financially for up to $1,000,000 through April 1, 2016. The Company has projected revenues for 2015 and 2016 that management believes will provide sufficient funds to sustain its continuing operations for at least the next twelve months.

The Company was in compliance with the covenants for both lines of credit with the Chief Executive Officer and SVB as of September 30, 2015.

In the event the Company does not meet its financial covenants in 2015 and SVB does not extend a waiver or forbearance agreement and the Company believes that it does not have adequate liquidity to operate, if necessary, the Company will implement a cost cutting plan that reduces all its expenditures to the appropriate level that matches its operating cash flows.

The Company does not plan any significant capital expenditures in 2015 other than to replace its existing capital equipment as it becomes obsolete. The Company’s plans for investment in product development are expected to be similar to prior years.