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Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2024

Accounting Policies [Abstract]

Schedule of Allowance for Credit Losses

Changes in the allowance for credit losses for the periods ended September 30, 2024 and 2023 were as follows:

Schedule of Allowance for Credit Losses 

		Trade Receivables
As of December 31, 2023		$	(124,103	)
(Provisions) Reductions charged to operating results			14,588
As of March 31, 2024			(109,515	)
(Provisions) Reductions charged to operating results			(10,850	)
As of June 30, 2024			(120,365	)
(Provisions) Reductions charged to operating results			3,637
Accounts write-offs		$	31,941
As of September 30, 2024		$	(116,728	)

		Trade Receivables
As of December 31, 2022		$	(88,331	)
(Provisions) Reductions charged to operating results			(20,649	)
Accounts write-offs			1,640
As of March 31, 2023			(107,340	)
(Provisions) Reductions charged to operating results			(6,878	)
As of June 30, 2023			(114,219	)
(Provisions) Reductions charged to operating results			(31,957	)
Accounts write-offs			31,941
As of September 30, 2023		$	(114,235	)

Schedule of Changes in Contract Assets and Liabilities

The following tables present changes in our contract assets during the nine months ended September 30, 2024 and 2023:

Schedule of Changes in Contract Assets and Liabilities 

		Balance at												Balance at
		Beginning								Payments				End of
		of Period				Billings				Received				Period
Nine months ended September 30, 2024
Accounts receivable		$	1,850,375		4,523,087	$	14,580,399	110,761	(115,873	$	(15,171,283	)		$	1,259,491
Nine months ended September 30, 2023
Accounts receivable		$	1,121,083			$	12,405,093			$	(12,201,951	)		$	1,324,225

		Balance at Beginning of Period				Revenue Recognized in Advance of Billings				Billings				Balance at End of Period
Nine months ended September 30, 2024
Accounts receivable, unbilled		$	1,320,837			$	4,523,087			$	(4,694,687	)		$	1,149,237
Nine months ended September 30, 2023
Accounts receivable, unbilled		$	596,410			$	3,892,301			$	(3,210,911	)		$	1,277,800

		Balance at Beginning of Period				Commissions Paid				Commissions Recognized				Balance at End of Period
Nine months ended September 30, 2024
Other contract assets		$	140,165			$	110,761			$	(115,873	)		$	135,053
Nine months ended September 30, 2023
Other contract assets		$	80,378			$	157,265			$	(99,581	)		$	138,062

 

The following table presents changes in our contract liabilities during the nine months ended September 30, 2024 and 2023:

		Balance at												Balance at
		Beginning								Recognized				End of
		of Period				Billings				Revenue				Period
Nine months ended September 30, 2024
Contract liabilities: Deferred revenue		$	2,927,808			$	6,185,445			$	(5,645,144	)		$	3,468,109
Nine months ended September 30, 2023
Contract liabilities: Deferred revenue		$	2,754,064			$	5,997,723			$	(5,619,662	)		$	3,132,125

 

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities are presented below:

Schedule of Deferred Tax Assets and Liabilities  

		September 30, 2024				December 31, 2023
Deferred tax assets
Reserves and accruals not currently deductible for tax purposes		$	222,621			$	69,676
Amortizable assets			122,794				109,612
Net operating loss carryforwards			4,207,127				4,771,762
Deferred tax assets, gross			4,552,542				4,951,050
Deferred tax liabilities
Amortizable assets			(190,360	)			(197,579	)
Property and equipment			(214,446	)			(214,698	)
Net deferred tax assets			4,147,736				4,538,773
Valuation allowance			(4,147,736	)			(4,538,773	)
Deferred tax assets, net		$	-			$	-

Schedule of Segment Information

Information by operating segment is as follows:

Schedule of Segment Information 

		2024				2023				2024				2023
		For the three months ended September 30,								For the nine months ended September 30,
		2024				2023				2024				2023
Revenues
Document Management		$	1,913,116			$	1,871,395			$	5,592,624			$	5,549,194
Document Conversion			2,676,509				2,377,034				8,145,678				7,144,498
Total revenues		$	4,589,625			$	4,248,429			$	13,738,302			$	12,693,692
Gross profit
Document Management		$	1,645,355			$	1,590,314			$	4,820,785			$	4,639,866
Document Conversion			1,160,499				1,015,277				3,887,692				3,201,997
Total gross profit		$	2,805,854			$	2,605,591			$	8,708,477			$	7,841,863
Capital additions, net
Document Management		$	276,419			$	140,952			$	491,459			$	353,202
Document Conversion			20,174				-				203,900				78,851
Total capital additions, net		$	296,593			$	140,952			$	695,359			$	432,053

		September 30, 2024				December 31, 2023
Goodwill
Document Management		$	3,989,645			$	3,989,645
Document Conversion			1,800,176				1,800,176
Total goodwill		$	5,789,821			$	5,789,821

		September 30, 2024				December 31, 2023
Total assets
Document Management		$	9,764,609			$	10,104,004
Document Conversion			9,269,776				8,922,256
Total assets		$	19,034,385			$	19,026,260

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