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Property and Equipment | 9 Months Ended
--- | ---
Sep. 30, 2017
Property and Equipment [Abstract] |
Property, Plant and Equipment Disclosure [Text Block] |
6. | Property and Equipment
Major classes of property and equipment consisted of the following as of the periods presented below:
|  | SEPTEMBER 30, |  | DECEMBER 31, |
|  | 2017 |  | 2016 |
|  | (Unaudited) |
Computer hardware and software |  | $ | 1,516,560 |  | $ | 1,214,052 |
Furniture and fixtures |  |  | 297,291 |  |  | 211,376 |
Leasehold improvements |  |  | 242,792 |  |  | 486,467 |
Automobile |  |  | 186,623 |  |  | 216,880 |
Gross property and equipment |  |  | 2,243,266 |  |  | 2,128,775 |
Less: accumulated depreciation and |  |  |  |  |  |  |
amortization |  |  | 1,273,615 |  |  | 1,392,097 |
Property and equipment, net |  | $ | 969,651 |  | $ | 736,678 |
Land and building held for sale, net |  | $ | - |  | $ | 594,376 |
On April 30, 2017, the Company entered into an Asset Purchase Agreement with Probaris Technologies, Inc. (“Seller”) and paid approximately $304,300 to purchase certain commercial identity and authentication software assets (the “Software Assets”). The Company principally purchased the Software Assets to ensure that a key component in the delivery of the Company’s identify management solution offering was neither acquired by a competitor nor no longer made available to license. Also under the terms of the Asset Purchase Agreement, the Company agreed to pay contingent consideration of $100,000 to the Seller if the Seller’s sole government customer renews its license agreement in 2018. The Company estimated the fair value of contingent consideration at $50,000 based on a number of different factors including the current state of the government fiscal budget and planned cuts, as well as changes in the technology and industry that may require expensive development that may not make renewal feasible. Contingent consideration is recorded within “accrued expenses” on the condensed consolidated balance sheets. As discussed further in Note 3, in May 2017 the Company relocated from the Lewis Center Facility to a larger facility in Columbus and abandoned undepreciated building and leasehold improvements with a gross cost and accumulated depreciation of approximately $282,200 and $105,500, respectively. The Company recorded within general and administrative expenses a loss on disposal of approximately $176,700 as a result of the move. During the nine month period ended September 30, 2017 there were disposals of fully depreciated owned property and equipment with related cost and accumulated depreciation of approximately $398,600 and building and leasehold improvements with a net book value of approximately $176,700. During the three and nine month periods ended September 30, 2016 there were disposals of fully depreciated owned property and equipment of approximately $309,100. There were no changes in the estimated useful lives used to depreciate property and equipment during the three or nine month periods ended September 30, 2017 and 2016. Assets under capital lease included in the table above consisted of the following as of the periods presented below:
|  | SEPTEMBER 30, |  | DECEMBER 31, |
|  | 2017 |  | 2016 |
|  | (Unaudited) |
Automobiles |  | $ | 93,301 |  | $ | 63,498 |
Less: accumulated amortization |  |  | 14,611 |  |  | 36,823 |
Capital lease assets, net |  | $ | 78,690 |  | $ | 26,675 |
During the nine month period ended September 30, 2017, the Company acquired two automobiles under capital lease arrangements and recognized a gross asset of $93,301. For the nine month period ended September 30, 2017, the Company disposed of two leased automobiles with a net book value of $47,800 and received gross proceeds of approximately $51,800. The Company recognized a net gain on disposal of approximately $4,100. During the three and nine month periods ended September 30, 2017 there were no material sales or disposals of leased equipment. During the three and nine month periods ended September 30, 2016 there were disposals of fully amortized leased equipment of approximately $309,100. Property and equipment depreciation expense (including amortization of capital lease property) was approximately as follows for the periods presented below:
|  | THREE MONTHS ENDED |  | NINE MONTHS ENDED |
|  | SEPTEMBER 30, |  | SEPTEMBER 30, |
|  | 2017 |  | 2016 |  | 2017 |  | 2016 |
|  | (Unaudited) |
Property and equipment depreciation expense |  | $ | 100,200 |  | $ | 105,200 |  | $ | 295,800 |  | $ | 336,100 |
Capital lease amortization (included in |  |  |  |  |  |  |  |  |  |  |  |  |
property and equipment depreciation expense) |  | $ | 6,000 |  | $ | 3,400 |  | $ | 13,800 |  | $ | 10,900 |

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- References No definition available. + Details
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- Definition The entire disclosure for long-lived, physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, accounting policies and methodology, roll forwards, depreciation, depletion and amortization expense, including composite depreciation, accumulated depreciation, depletion and amortization expense, useful lives and method used, income statement disclosures, assets held for sale and public utility disclosures. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI http://asc.fasb.org/topic&trid=2155823 + Details
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