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Note B - Revenue From Contracts With Customers | 12 Months Ended
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Dec. 31, 2018
Notes to Financial Statements |
Revenue from Contract with Customer [Text Block] | NOTE B—REVENUE FROM CONTRACTS WITH CUSTOMERS The Company adopted ASC 606 on January 1, 2018 using the modified retrospective method for all contracts not completed as of the date of adoption. Disaggregation of Revenue The following table summarizes revenue from contracts with customers for the years ended:
|  | North America |  |  | South America |  |  | EMEA* |  |  | Asia |  |  | December 31, 2018 |
License fees |  | $ | 318,271 |  |  | $ | 32,000 |  |  | $ | 278,516 |  |  | $ | 1,111,110 |  |  | $ | 1,739,897 |
Hardware |  |  | 439,480 |  |  |  | 53,200 |  |  |  | 477,674 |  |  |  | 321,715 |  |  |  | 1,292,069 |
Support and Maintenance |  |  | 805,800 |  |  |  | 665 |  |  |  | 60,820 |  |  |  | 27,321 |  |  |  | 894,606 |
Professional services |  |  | 115,970 |  |  |  | - |  |  |  | 2,000 |  |  |  | - |  |  |  | 117,970 |
Total Revenues |  | $ | 1,679,521 |  |  | $ | 85,865 |  |  | $ | 819,010 |  |  | $ | 1,460,146 |  |  | $ | 4,044,542 |
|  | North America |  |  | South America |  |  | EMEA* |  |  | Asia |  |  | December 31, 2017 |
License fees |  | $ | 3,104,509 |  |  | $ | 583 |  |  | $ | 4,279 |  |  | $ | 111,000 |  |  | $ | 3,220,371 |
Hardware |  |  | 1,190,500 |  |  |  | 2,341 |  |  |  | 8,252 |  |  |  | 688,330 |  |  |  | 1,889,423 |
Support and Maintenance |  |  | 458,340 |  |  |  | 2,364 |  |  |  | 37,907 |  |  |  | 2,367 |  |  |  | 500,978 |
Professional services |  |  | 686,812 |  |  |  | - |  |  |  | - |  |  |  | 5,400 |  |  |  | 692,212 |
Total Revenues |  | $ | 5,440,161 |  |  | $ | 5,288 |  |  | $ | 50,438 |  |  | $ | 807,097 |  |  | $ | 6,302,984 |
* EMEA – Europe, Middle East, Africa Financial Statement Impact of Adopting ASC 606 The Company adopted ASC 606 using the modified retrospective method. The cumulative effect of applying the new guidance to all contracts with customers that were not completed as of January 1, 2018 was recorded as an adjustment to accumulated deficit as of the adoption date. The cost of obtaining the contract reflects the outcome of the sales effort in educating, demonstrating and selling our solutions. Accordingly under ASC 606, commissions are a capitalized cost due to the acquisition of a new customer. As a result of applying the modified retrospective method to adopt the new revenue guidance, the following adjustments were made to the following select condensed consolidated balance sheet line items as of January 1, 2018:
|  | As reported - December 31, 2017 |  |  | Adjustments |  |  | As adjusted - January 1, 2018 |
Capitalized contract assets |  | $ | - |  |  | $ | 240,017 |  |  | $ | 240,017 |
Total assets |  | $ | 16,078,822 |  |  | $ | 240,017 |  |  | $ | 16,318,839 |
Accumulated deficit |  | $ | (67,076,492 | ) |  | $ | 240,017 |  |  | $ | (66,836,475 | )
Total Stockholders’ Equity |  | $ | 13,753,295 |  |  | $ | 240,017 |  |  | $ | 13,993,312 |
Total Liabilities and Stockholders’ Equity |  | $ | 16,078,822 |  |  | $ | 240,017 |  |  | $ | 16,318,839 |
Impact of New Revenue Guidance on Financial Statement Line Items The following table compares selected reported condensed consolidated balance sheet, statement of operations and cash flows, as of and for the year ended December 31, 2018, to the pro-forma amounts had the previous guidance still been applied:
|  | As of December 31, 2018 |
|  | As reported |  |  | Pro-forma |  |  | Increase (decrease) |
Consolidated balance sheet data: |  |  |  |  |  |  |  |  |  |  |  |
Capitalized contract costs, net |  | $ | 319,199 |  |  | $ | - |  |  | $ | (319,199 | )
|  | Year Ended December 31, 2018 |
|  | As reported |  |  | Pro-forma |  |  | Increase (decrease) |
Consolidated statement of operations data: |  |  |  |  |  |  |  |  |  |  |  |
Selling, general and administrative expenses |  |  | 5,333,906 |  |  |  | 5,413,088 |  |  |  | 79,182 |
Net loss |  |  | (6,868,875 | ) |  |  | (6,948,057 | ) |  |  | (79,182 | )
Net loss available to common stockholders |  |  | (8,495,874 | ) |  |  | (8,575,056 | ) |  |  | (79,182 | )
Basic & Diluted Loss per Common Share |  |  | (0.73 | ) |  |  | (0.74 | ) |  |  | 0.00 |
|  | Year Ended December 31, 2018 |
|  | As reported |  |  | Pro-forma |  |  | Increase (decrease) |
Consolidated statement of cash flow data: |  |  |  |  |  |  |  |  |  |  |  |
Net loss |  |  | (6,868,875 | ) |  |  | (6,948,057 | ) |  |  | (79,182 | )
Change in contract assets |  |  | (79,182 | ) |  |  | - |  |  |  | 79,182 |
Net cash used by operating activities |  |  | (1,613,475 | ) |  |  | (1,613,475 | ) |  |  | - |
Revenue recognized during the year ended December 31, 2018 from amounts included in deferred revenue at the beginning of the period was approximately $382,000 respectively. The Company did not recognize any revenue from performance obligations satisfied in prior periods. Total deferred revenue (contract liability) was $196,609 and $507,866 at December 31, 2018 and December 31, 2017, respectively. Transaction Price Allocated to the Remaining Performance Obligations ASC 606 requires that the Company disclose the aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied as at December 31, 2018. The guidance provides certain practical expedients that limit this requirement, which the Company’s contracts meet as follows: ● The performance obligation is part of a contract that has an original expected duration of one year or less, in accordance with ASC 606 - 10 - 50 - 14. At December 31, 2018 deferred revenue represents our remaining performance obligations related to prepaid support and maintenance, all of which is expected to be recognized within one year.

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -URI http://asc.fasb.org/topic&trid=2122369 + Details
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