v3.8.0.1
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)
Sep. 30, 2017
Dec. 31, 2016
Current assets:    
Cash and cash equivalents $ 1,664,210 $ 1,621,049
Accounts receivable, net of allowance of $375,000 3,050,022 2,501,621
Unbilled services 749,553 463,563
Prepaid expenses and other current assets 558,975 331,094
Total current assets 6,022,760 4,917,327
Property and equipment, net 490,085 466,202
Intangible assets, net 2,607,601 2,431,111
Goodwill 401,000 401,000
Deferred tax assets 2,059,902 2,414,902
Deposits and other assets 33,330 28,887
Total assets 11,614,678 10,659,429
Current liabilities:    
Bank line of credit 0 0
Accounts payable 1,965,785 1,822,071
Accrued expenses 892,403 823,591
Accrued interest 16,094 15,533
Income taxes payable 225,143 177,466
Contingent consideration – current portion 93,125 180,029
Long term debt - current portion 281,558 306,677
Capital lease obligations – current portion 84,528 94,714
Deferred revenue 2,194,716 1,690,147
Total current liabilities 5,753,352 5,110,228
Contingent consideration net of current portion 62,083 31,685
Long term debt net of current portion 282,216 486,473
Capital lease obligations net of current portion 40,068 60,127
Total liabilities 6,137,719 5,688,513
Commitments and contingencies
Stockholders’ equity:    
Preferred stock, value 0 0
Common stock, value 46 46
Additional paid-in capital 12,090,515 12,176,642
Accumulated deficit (6,613,603) (7,205,773)
Total stockholders’ equity 5,476,959 4,970,916
Total liabilities and stockholders’ equity 11,614,678 10,659,429
Series A Preferred Stock [Member]    
Stockholders’ equity:    
Preferred stock, value 0 0
Series B Preferred Stock [Member]    
Stockholders’ equity:    
Preferred stock, value $ 1 $ 1
v3.8.0.1
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($)
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Revenues:        
Product, net $ 1,609,924 $ 1,709,901 $ 3,951,465 $ 3,754,594
Service, net 7,976,976 7,824,191 22,146,647 22,126,689
Total revenues, net 9,586,900 9,534,092 26,098,112 25,881,283
Cost of revenues:        
Product 761,231 885,771 1,985,058 1,972,520
Service 5,037,811 5,094,953 13,534,059 14,074,008
Cost of revenues 5,799,042 5,980,724 15,519,117 16,046,528
Gross profit 3,787,858 3,553,368 10,578,995 9,834,755
Selling, general and administrative expenses:        
Selling expenses 1,181,878 1,172,956 3,603,692 3,348,476
General and administrative expense 1,902,535 1,702,110 5,386,852 4,811,844
Share-based compensation 8,433 4,747 93,255 28,651
Depreciation and amortization 145,585 171,308 465,463 513,766
Total selling, general and administrative expenses 3,238,431 3,051,121 9,549,262 8,702,737
Income from operations 549,427 502,247 1,029,733 1,132,018
Other income (expense):        
Interest expense, net (8,122) (13,760) (25,561) (52,476)
Other income 0 881 0 10,881
Total other income (expense) (8,122) (12,879) (25,561) (41,595)
Income before taxes 541,305 489,368 1,004,172 1,090,423
Provision (benefit) for income taxes 223,482 (2,262,038) 412,002 (2,282,380)
Net income $ 317,823 $ 2,751,406 $ 592,170 $ 3,372,803
Net income per common share:        
Basic (in Dollars per share) $ 0.07 $ 0.62 $ 0.13 $ 0.76
Fully diluted (in Dollars per share) $ 0.07 $ 0.61 $ 0.13 $ 0.75
Weighted average shares:        
Basic (in Shares) 4,489,903 4,410,736 4,488,038 4,410,736
Diluted (in Shares) 4,493,903 4,477,403 4,492,038 4,477,403
v3.8.0.1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)
9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Cash flows from operating activities:    
Net income $ 592,170 $ 3,372,803
Adjustments to reconcile net income to net cash provided by operating activities:    
Deferred income taxes 355,000 (2,214,902)
Depreciation and amortization 180,392 174,507
Amortization of intangibles 285,071 339,258
Provision for bad debts 19,661 0
Share-based compensation 25,832 28,651
Common stock issued in exchange for services 47,500 0
Warrants issued in exchange for services 19,923 0
Changes in assets and liabilities:    
Accounts receivable (568,062) (109,238)
Unbilled services (285,990) (138,015)
Prepaid expenses and other current assets (227,878) 157,951
Deposits and other assets (4,443) 322
Accounts payable 143,714 623,066
Accrued expenses 68,811 37,564
Income tax payable 47,677 (87,455)
Accrued interest 561 (257)
Deferred revenues 504,569 (668,064)
Net cash provided by operating activities 1,204,508 1,516,191
Cash flows from investing activities:    
Purchase of property and equipment (155,296) (176,827)
Acquisition of customer list (60,000) 0
Software development costs (401,561) (133,045)
Net cash used in investing activities (616,857) (309,872)
Cash flows from financing activities:    
Proceeds from issuance of preferred stock 0 100
Payment of cash dividend (179,383) (264,699)
Payment of contingent consideration (56,505) (123,657)
Payment of long term debt (229,378) (224,408)
Principal payments under capital leases obligations (79,224) (76,549)
Net cash used in financing activities (544,490) (689,213)
Net increase in cash and cash equivalents 43,161 517,106
Cash and cash equivalents – beginning of period 1,621,049 1,193,313
Cash and cash equivalents – end of period 1,664,210 1,710,419
Cash paid during period for:    
Interest 25,000 50,792
Income taxes $ 220,086 $ 61,337