Organization, Consolidation and Presentation of Financial Statements	12 Months Ended
Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements:
Substantial Doubt about Going Concern	Operating Matters and Liquidity The Company has a history of net losses and an accumulated deficit of $35,437,000 as of December 31, 2016. In 2016, the Company generated net income of $410,000 compared to a net loss of $4.4 million generated in 2015. Further, at December 31, 2016, the Company had a working capital ratio of .53:1, with cash and cash equivalents of $661,000 compared to December 31, 2015 when the Company had cash, cash equivalents and investments available for sale of $1,676,000. The decrease in cash and cash equivalents in the year ended December 31, 2016 was primarily driven by a decrease in cash provided by operations in 2016 compared to 2015 and an increase in capitalized software development costs, partially offset by reduced cash outlays for the Company’s line of credit and preferred stock dividends. As of December 31, 2016 the Company owed $1,927,000 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 December 31, 2016, the availability under the line of credit was $73,000. The Company has projected revenues that management believes will provide sufficient funds along with available borrowings under its line of credit to sustain its continuing operations through at least March 31, 2018. The Company was in compliance with the financial covenants for the line of credit with SVB as of December 31, 2016. In the event the Company does not meet its financial covenants in the future, SVB does not extend a waiver or forbearance agreement, and the Company does not believe that it has adequate liquidity to operate, the Company will implement additional cost adjustments, if necessary, that would reduce its expenditures to the appropriate level that matches its operating cash flows. Our primary cash requirements are to fund operations which mainly include personnel-related costs, marketing costs, third party costs related to hosting and software, general and administrative costs associated with being a public company, travel costs, and quarterly preferred stock dividends. The Company expects to continue to incur operating expenses for research and development and investment 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 results of operations. However, projections of future cash needs and cash flows are subject to risks and uncertainty. Management’s current operating plan includes a reduction in operating expenses in order to be aligned with expected revenues. The primary area of cost reduction was to reduce company headcount during 2017 by eliminating non-revenue generating personnel throughout the Company. The Company remains focused on maximizing revenue from its revenue generating resources, including repurposing certain personnel to become billable so the Company can improve its liquidity. The Company has a substantial professional services backlog that resulted from the new customers added in the second half of 2016 as well as upgrade projects for our existing customers as they move to the latest version of Alliance. Management has also initiated cost containment programs in other areas including the elimination or reduction of non-essential marketing activities, space reduction in areas in which the Company has excess office capacity, focusing marketing activities only on those programs that directly drive new business and eliminating contractors who are not essential to growth. In addition, we do not expect to spend a significant amount on capital expenditures. Overall, we have already implemented steps to reduce total operating expenses without impairing our ability to grow the business by obtaining new customers and increasing sales to existing customers. We expect our revenues and cost reductions to generate sufficient cash from operations. As noted above, if the Company’s actual results fall short of expectations, the Company will make further cost adjustments to improve the Company’s operating cash flows. Our operations are subject to certain risks and uncertainties including, among others, current and potential competitors with greater resources, dependence on our significant and existing customer base, closing license and subscription sales in a timely manner, lack of a history of consistently generating net income and uncertainty of future profitability, and possible fluctuations in financial results. The accompanying consolidated financial statements have been prepared assuming that we will continue as a going concern, which contemplates continuity of operations, realization of assets, and satisfaction of liabilities in the ordinary course of business. The propriety of using the going-concern basis is dependent upon, among other things, the achievement of future profitable operations, the ability to generate sufficient cash from operations, and potential other funding sources for our current line of credit, including cash on hand, to meet our obligations as they become due. We believe the going-concern basis is appropriate for the accompanying consolidated financial statements based on our current operating plan and business strategy for the 12 months following the issuance of this report. These statements do not include any adjustments that might result if the carrying amount of recorded assets and liabilities are not realized.

Organization, Consolidation and Presentation of Financial Statements

12 Months Ended

Dec. 31, 2016

Organization, Consolidation and Presentation of Financial Statements:

Operating Matters and Liquidity

The Company has a history of net losses and an accumulated deficit of $35,437,000 as of December 31, 2016. In 2016, the Company generated net income of $410,000 compared to a net loss of $4.4 million generated in 2015. Further, at December 31, 2016, the Company had a working capital ratio of .53:1, with cash and cash equivalents of $661,000 compared to December 31, 2015 when the Company had cash, cash equivalents and investments available for sale of $1,676,000. The decrease in cash and cash equivalents in the year ended December 31, 2016 was primarily driven by a decrease in cash provided by operations in 2016 compared to 2015 and an increase in capitalized software development costs, partially offset by reduced cash outlays for the Company’s line of credit and preferred stock dividends.

As of December 31, 2016 the Company owed $1,927,000 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 December 31, 2016, the availability under the line of credit was $73,000. The Company has projected revenues that management believes will provide sufficient funds along with available borrowings under its line of credit to sustain its continuing operations through at least March 31, 2018.

The Company was in compliance with the financial covenants for the line of credit with SVB as of December 31, 2016. In the event the Company does not meet its financial covenants in the future, SVB does not extend a waiver or forbearance agreement, and the Company does not believe that it has adequate liquidity to operate, the Company will implement additional cost adjustments, if necessary, that would reduce its expenditures to the appropriate level that matches its operating cash flows.

Our primary cash requirements are to fund operations which mainly include personnel-related costs, marketing costs, third party costs related to hosting and software, general and administrative costs associated with being a public company, travel costs, and quarterly preferred stock dividends. The Company expects to continue to incur operating expenses for research and development and investment 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 results of operations. However, projections of future cash needs and cash flows are subject to risks and uncertainty.

Management’s current operating plan includes a reduction in operating expenses in order to be aligned with expected revenues. The primary area of cost reduction was to reduce company headcount during 2017 by eliminating non-revenue generating personnel throughout the Company. The Company remains focused on maximizing revenue from its revenue generating resources, including repurposing certain personnel to become billable so the Company can improve its liquidity. The Company has a substantial professional services backlog that resulted from the new customers added in the second half of 2016 as well as upgrade projects for our existing customers as they move to the latest version of Alliance. Management has also initiated cost containment programs in other areas including the elimination or reduction of non-essential marketing activities, space reduction in areas in which the Company has excess office capacity, focusing marketing activities only on those programs that directly drive new business and eliminating contractors who are not essential to growth. In addition, we do not expect to spend a significant amount on capital expenditures. Overall, we have already implemented steps to reduce total operating expenses without impairing our ability to grow the business by obtaining new customers and increasing sales to existing customers. We expect our revenues and cost reductions to generate sufficient cash from operations. As noted above, if the Company’s actual results fall short of expectations, the Company will make further cost adjustments to improve the Company’s operating cash flows.

Our operations are subject to certain risks and uncertainties including, among others, current and potential competitors with greater resources, dependence on our significant and existing customer base, closing license and subscription sales in a timely manner, lack of a history of consistently generating net income and uncertainty of future profitability, and possible fluctuations in financial results. The accompanying consolidated financial statements have been prepared assuming that we will continue as a going concern, which contemplates continuity of operations, realization of assets, and satisfaction of liabilities in the ordinary course of business. The propriety of using the going-concern basis is dependent upon, among other things, the achievement of future profitable operations, the ability to generate sufficient cash from operations, and potential other funding sources for our current line of credit, including cash on hand, to meet our obligations as they become due.

We believe the going-concern basis is appropriate for the accompanying consolidated financial statements based on our current operating plan and business strategy for the 12 months following the issuance of this report. These statements do not include any adjustments that might result if the carrying amount of recorded assets and liabilities are not realized.