XML 23 R8.htm IDEA: XBRL DOCUMENT v3.19.1
Note B - Revenue From Contracts With Customers
 12 Months Ended
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.